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Home My WebLink AboutCO 577 e e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Co 577 Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 1111111111111111111 RES CAN ~olor Items: ~reYSCale Items: o Poor Quality Originals: DIGITAL DATA OVERSIZED (Scannable) o Maps: D Other Items Scannable by a Large Scanner o Diskettes, No. D Other, NolType: OVERSIZED (Non-Scannable) o Other: o Logs of various kinds: NOTES: o Other:: BY: cS Dale ut ~ 7/0 (p /s/ W1£ 1111111111111111111 Project Proofing BY: ("':Maria ) - Date:' I J;;'7 Job I I /s/ vvtf Scanning Preparation BY: Date: + = TOTAL PAGES 53 (Count does not include cover sheet) /s/ Production Scanning 11111111111111" III Stage 1 Page Count from Scanned File: s ~ (Count does include cover sheet) LYES NO Stage 1 Page Count Matches Number in Scanning Preparation: ~ Date: 1/ 1J-.7jofo If NO in stage 1, page(s) discrepancies were found: YES /s/ ~F NO BY: BY: Maria Date: /s/ 11/11111111111 11111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page. doc . . INDEX CONSERVATION ORDER NO. 577 Kaloa #4 1) August 30, 2005 Application for Spacing Exception from Aurora Gas for Kaloa #4 2) September 14,2005 Notice of Hearing, affidavit of mailing, e-mail list, bulk mailing list 3) October 3, 2005 Memo to File 4) October 5, 2005 Withdraw of Application from Operator 5) September 2, 2005 Affidavit of Facts filed by Operator CONSERVATION ORDER NO. 577 . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 RE: THE APPLICATION OF Aurora Gas, LLC ) ("Aurora") for a spacing exception to allow) drilling, testing and production of the ) Kaloa No.4 gas exploration well in ) Accordance with 20 AAC 25.055 ) Conservation Order No. 577 October 5, 2005 ORDER CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. The applicant withdrew their request for a spacing exception. DATED AND EFFECTIVE at Anchorage, Alaska and this 5th day of October, 2005. BY DIRECTION OF THE COMMISSION mbie stant to the Commission *5 --~..- ..-ø AFFIDA VIT OF FACTS Regarding Spacing Exception Application, Koloa No.4 Well, Kenai Peninsula Borough, Cook Inlet, Alaska. The purpose of this AFFIDAVIT OF FACTS dated effective August 28, 2005 is to confirm to the Alaska Oil and Gas Conservation Commission, 333 W 7th Avenue, Suite No. 100, Anchorage, Alaska 99501-3533, Attn: Mr. Steve Davies, Petroleum Geologist, certain facts and stipulations regarding the ownership of the minerals, surface ownership and other pertinent facts regarding certain lands, leases, and leasehold of lands situated within the captioned borough and subject to a Spacing Exception Application recently submitted by Aurora Gas, LLC, as Operator of the proposed well cited in the Application, to the Alaska Oil and Gas Conservation Commission, hereinafter referred to as the "AOGCC", pursuant to 20 AAC 25.055. WHEREAS, my name is Randall D. Jones, CPL and I am employed as Manager, LAND & Negotiations at Aurora Gas, LLC, hereinafter referred to as "AURORA". I have over twenty-five years of experience in Land Management and my present responsibilities encompass all Land Management duties at AURORA allowing me to be knowledgeable about the facts contained within this AFFIDAVIT. . NOW, THEREFORE, let it be known AURORA's Koloa No.2 Well is currently producing gas from the Upper Tyonek Formation, Carya 2-4-2 interval, at a surface location situated in the NW 4NE4 of Section 26, Township 11 North, Range 12 West, SM. The proposed Koloa No. 4 Well is also planned to test gas at three (3) intervals being as follows: FORMATION KALOA 4 KALOA 4 KALOA 2 KALOA 2 TOP MD(FT) TVDSS(FT) MD(FT) TVDSS(FT) COMMENTS CARY A 2-4.1 PRODUCING SAND 3556.00 -2741.00 3155.00 -2941.00 INTERVAL CARY A 2-4.2 PRODUCING SAND 3660.00 -2834.00 3248.00 -3034.00 INTERVAL CARY A 2-5.1 PRODUCING SAND 3831.00 -2986.00 3400.00 -3186.00 INTERVAL , but unfortunately said well is also planned to have a SL situated in the identical NW4NE4 of Section 26 and aBHL within the NW/4NW4 of Section 25, both further identified below, but could have a completed zone within Section 26. Both wells would be lease wells under AURORA'S C-61394 Lease and not situated within the confines of any unit. Consequently, the proposed Koloa No. 2 Well will require a spacing exception location pursuant to 20 AAC 25.540. -~- --- WHEREAS, reference is herein made to that certain Oil & Gas Lease dated effective February 1, 1995, as amended, covering certain lands; including, but not limited to, all of Sections 25 & 26, Township 11 North, Range 12 West, SM, hereinafter referred to as the "LEASE", from Cook Inlet Region, Inc., as Lessor, and ARCa Alaska, Inc., as Lessee. AURORA is the only owner (leaseholder) of the LEASE, COO is the only owner (mineral rights owner), of the LEASE and the surface of the LEASE is all owned by the Tyonek Native Corp. WHEREAS, it should be noted there are no issues with any injury to the correlative rights of any landowners, owners nor operators offsetting the LEASE and within 3,000' of the proposed BHL location for the proposed Koloa No. 4 Well, pursuant to the requirements of 20 AAC 25.540. As can be seen on Exhibit "A" attached hereto the offsetting landowner of the tract contiguous to and north of the drillsite lease, C-61393, for the proposed well is the Cook Inlet Region, Inc. and the minerals under said tract are leased to AURORA being our C-61390 Lease. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and east of the drillsite lease is also the Cook Inlet Region Inc. and the minerals of said tract are unleased. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and west of the drillsite lease is the Mental Health Trust and these MHT minerals are leased to Pelican Hill Corporation under MHT 9200178. The surface owner is the Kenai Peninsula Borough. The offsetting landowner of the tract contiguous to and south of the drillsite lease is the State of Alaska, Department of Natural Resources and these minerals are leased to Unocal under ADL-17586. The surface owner is not applicable due to these minerals being situated offshore. It should be noted, however, all of the above offsetting tracts contiguous to the drillsite lease are in excess of 3,000' from the proposed BHL. FUTHERMORE, by certified copy return receipt requested of my letter dated August 30, 2005 to the AOGCC written notice to all owners, landowners, and operators of all properties within 3,000 feet of the proposed Koloa No.4 Well and/or all owners, landowners, and operators of contiguous tracts thereto requiring the spacing exception was effected on August 31, 2005. Proof of such mailing reflecting proper mailing to these parties with a list of addresses to which the notice was sent is reflected on Exhibit "B" attached hereto. Please be advised the reasons for the proposed Koloa No.4 Well's current planned location are: a) to utilitize a portion of an existing previously disturbed area for the SL drilling pad thereby minimizing environmental disturbance and existing roads (it runs right to the pad) without disturbing new, virgin areas which avoids the many wetlands in the area, and b) the drilling pad is located in a preferred optimal placement based on current geological interpretation such that it is in a near favorable position geologically (structurally high and near the center of the structure, as seen on seismic lines and subsurface mapping) for a slightly deviated hole, and c) the need to utilize the drilling rig under contract for the proposed well to drill and test two (2) other wells at our Three Mile Creek Unit commencing after completion of testing of the proposed well, but -.~ no later than October 15 so as to be finished before mid-November since the rig is not winterized. . CONCLUDING, I now say these statements are true and correct to the best of my knowledge and analysis of AURORA'S land files and records, and through review of the land records of the websites of the Kenai Peninsula Borough and the State of Alaska, Department of Natural Resources. SIGNED thi~ate of AUGUST, 2005. BY: (,PI-- TITLE: Manager. Land & Negotiations EMAlL: riones@aurorapower.com IN THE UNITED STATES OF AMERICA) ) ss. STATE OF TEXAS ) This certifies that on the þ-¡ day of September, 2005, before me a notary public in and for the State of Texas, duly commissioned and sworn, personally appeared Randall D. Jones. CPL , to me known and known to me to be the person described in, and who executed the foregoing assignment, who acknowledged to me that he executed the same freely and voluntarily for the uses and purposes therein mentioned. Witness my hand and official seal the day and year in this certificate first above written. e ALISSA S. VADIOlSKAIA IIOrADPUU STATE OF TEXAS ~(ð. COM.ISSION EXPIRES: Of JANUARY 19,2009 ¡:J//$~ 5" M-dk~b.,4- Notary Public My Commission Expires:" h~ /~:à209 _~(.,.'.f'_..-~ kaloa aogcc affidavit of factsspacinexception applicationlrules t..At11till ·A· a j -' T12 N . . j r...·.. '...: ". I-.-:'#~I-t ......"'...1-_· ~-. :>.......~~..:..". ". ".,~....:I ·:r-t~:.. ?'Î i!-] 20 ') ¡ . .. ~. -. '. ~ <. '. .~~ .,.1 1':) "..",' ;,,,::)~gf,~?v:~~~~~ :81Itl¡il'~~ ~ ~ ,> ,.......;-..~"'....,".u.'i""'.".,~ " .~~ r='. [@FJ:f' '~:::~~~~~Ô:i?}i~"c¡ . (. I.. O()" .............. .... jn~. '"''if; :~~~f/fJf~'r ~\~-i ., 1 .-. I r,,..... ~c.:. ".'_' " 'I.' S 5: C\ r- r- eI: a:: --'q :::f! ::~7 :.!C T13N ::2 '-,."'\ ..)'.' ].: -~ _~i '.'I -t : r- ~ ... " 11 J . '" I·; . LJ' - . ] ;25 I 30 ¡ 29 C06l389.. : C06~388, 36 I 31 32 ¡ T1 2 N ,,: ., .... ;1- ..-. To' -- iU T11 N I ." G I - - 4 ' 3 ., I ,' I ..~ ' . ¡ C 061ì39ó,-lco6~~91- ~C061392' -11 . :\.1'1 ......,'.1. -&~ !9>l'19 , ~ _ : -.,.' i ~-7-'-!--;'- ,..;.., 35 ., - .",\.- <::0 ,J~ ,BS _:---nJ BA ..1.... , I~' ", \ . 1 :' I·t 13 \ . i .' ~\ I C061¡393·· ;.. 2.3 , ~. . OJ as : '- " " Bi::;C,J5Ü.1 .] 1 LEGEND ~ CIRI SURFACE AND SUBSURFACE ~ CIAI SURFACE ESTATE/SAND & GRAVEL C3 CIAI SUBSURFACE ESTATE ONLY c::::::J TVONEK SURFACE ESTATE/CIRI SUBSURFACE ¡'N.··.··! TYONEK SELECTIONS· Conditional lease areas under review unmmn CIRI COAL. OIL & GAS _ PRIVATE LAND CID NATIVE ALLOTMENTS LID BOROUGH SELECTED [K] BOROUGH APPROVED ),. { ~>. ~r .:"_ .~.~_:, ·1::"\ LI)C;a4!On'·~;~/. - .' _\.- - - - MAIN ROADS SECONDARY ROADS t:::: 1 AIRSTRIPS --+-- ELECTRIC TRANSMISSION LINE Moquawkie Lease Map COOK INLET REGION, ING. Feb. 1, 1995 dlB ßAt1UHl ,A, D -- -< ., O_T~_"~ ~ ~~~ ?n ',\, c:...1 22 . ·2:~ .: 1_· .;' ~, ". .i.1~ "-",J :-?f! ;~ï ~I.~ :2~) ! :-:,u T13N T12 N ~i$: N,r- r- a: -. :!~ .~lJ J~~ .··:~a5 L. . f . !\ .. ':t':-' . I 2 ... 11 ,9.,-:\.::··)~":' '" :G 11 ~'\ 1 ,I _ I ' :5 1·\-, . -- -. ~ BAnGE LANDING SITE J 25 I :.10 I 29 28 I 27 f . -G06·1,-389.. : C06p388! -C06~~'~3- 35 36 I 3 t . 32.1 33 - I 34 ... T12 N -~: ., J'1 -r.· -. ¡-- T\ 1 NI ~: G I .-5' - , 4 ¡ 3 I C061139G...1c06lt-~91- ~ C06139Z" 'I - . ,_. I...... I '_ : , 11 :1 i' .,... .~. ..:a.- ! ~~ : ~ ,.' i , . tè'-. . I v ... '. . .~. ..- f;; __35 ,D .... 7" 26 , ,J..¡ ',~' ~BS ;. '. TYONEK VILLAGE _'; ~ 1'6 8A 13 \ . , .' .... I C061:393- , 2..3., '''.} aO\<. G· \~\-.'é.i t 15 1-1 17 ~~ _as o " "" .t.'!;!"ES ,~.'~WARO '!'fI::¡",'c..'!.4:': 60(",950'1 <11 LEGEND ~ CIRI SURFACE AND SUBSURFACE ~ CIRI SURFACE ESTATE/SAND & GRAVEL c:::=:J CIRI SUBSURFACE ESTATE ONLY ,.,+", TYONEK SURFACE ESTATE/CIRI SUBSURFACE ~ TYONEK SELECTIONS· Conditional lease areas under review IIIßIIIII] CIRI COAL, OIL & GAS _ PRIVATE LAND eM] NATIVE ALLOTMENTS c::=M:J BOROUGH SELECTED CID BOROUGH APPROVED , ~'...-'~ ..-- { ~- , _::~.-I --·:-"-'-"~-"-~-s.. \, ~~ . -..." __ _t.-_"" _,,~~)~f.._~~4'\ Lo~au::\~~~,J~ .....,.." "-"''"'--- ".Ã~· - - - MAIN ROADS - SECONDARY ROADS t:::::z AIRSTRIPS ---..- ELECTRIC TRANSMISSION LINE Moquawkie Lease Map COOK INLET REGION, ING. Feb. 1, 1995 dlS """"-" -- EXHIBIT " B " Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite No. 100 Anchorage, Alaska 99501-3539 August 30, 2005 Attn: Mr. Steve Davies Petroleum Geologist RE: Application for Spacing Exception Permit to Drill Kaloa No.4 Well C-61393 Moquawkie Area Gentlemen: Reference is made to the recently submitted Application for Permit to Drill (APD) in behalf of Aurora Gas, LLC (AURORA), as Operator of and applicable to the captioned proposed development well. This letter respectfully requests the APD be approved with certain limitations placed upon AURORA, as discussed below. The Kaloa No.2 Well, the only well currently producing upon the captioned lease, is producing gas from the Upper Tyonek Formation, Carya 2-4-2 interval, at a surface location situated in the NW4NE4 of Section 26, Township 11 North, Range 12 West, SM. The proposed well is also planned to test gas at three (3) intervals shown in yellow on the attached Exhibit "A", but unfortunately is also planned to have a SL situated in the identical NW 4NE4 of Section 26 and a BHL within the NW/4NW 4 of Section 25, both further identified below, but could have a completed zone within Section 26. Both wells would be lease wells and not situated within the confmes of any unit. Consequently, the proposed well will require a spacing exception location pursuant to 20 AAC 25.540. Consequently, this letter respectfully requests the AOGCC give favorable consideration to approving AURORA's APD, but AURORA recognizes, if approved, the AOGCC would prohibit AURORA's ability to produce said well from the producing zone in the Kaloa No.2 Well, the Carya 2-4.2 sand seen between 3,158' to 3,552' MD, until the completion of the spacing exception process for understandable reasons. However, in anticipation of a presumable conditionally approved APD, please be advised AURORA may elect to accept all business risks associated with the drilling, perforating and testing of this well prior to the spacing exception process; including, but not limited to, the thirty (30) day public notice period being fully completed. Notwithstanding that such action, if taken, would not be recommended by the AOGCC, please understand AURORA's rational is (i) to take advantage of the present ideal drilling conditions during this summer season, (ii) the economic considerations of keeping our drilling personnel intact from cessation of drilling operations at our Aspen No.1 Well to the commencement of drilling operations of the proposed well and not subjecting them to a potential six (6) week suspension between wells, (iii) our assessment of the minimal risk of exposure to possible protest from third parties since the BHL of the proposed well is further north and east than the existing BHL of the Kaloa No. 2 Well, and (iv) the need to utilize the drilling rig under contract for the proposed well to drill and 1- - 2 test two (2) other wells at our Three Mile Creek Unit commencing after completion of testing of the proposed well, but no later than October 15 so as to be finished before mid- November since the rig is not winterized. 9/1/2005 This spacing exception proposal, if approved by the AOGCC, would allow AURORA to commence drilling operations and test the intervals of interest, as identified on Exhibit "A", but not produce hydrocarbons from this Carya 2-4.2 zone in the well until the spacing exception process in concluded, notwithstanding any assumption of business risks decision made by AURORA after the APD is approved, but before the spacing exception decision is rendered. AURORA's operational, drilling and testing program is briefly discussed below for your benefit. AURORA plans to drill the proposed Kaloa No. 4 Well to sufficient depth to test Upper Tyonek ("Carya") sands that are productive in the Kaloa No.2 Well. All sands are expected to be structurally higher in the No.4 than in the No.2 Well. The Kaloa No. 2 Well is completed in three sand lobes of the Carya 2-4.2, which has proved to be productive, producing more than 1 BCF to date, and still capable producing at a rate of about 5 MMcfpd. The total net thickness of these sands is about 150' in the No.2 Well. The plan is to drill the proposed well to 4,750' /4,000'MD/TVD and run a full suite of open-hole logs, probably including: array induction, formation density, compensated neutron, di-pole sonic, formation micro imager, side-wall cores and formation pressure tests (Schlumberger's MDT tool). Following the setting and cementing of 5-1/2" production casing and analysis of these logs, the well will be perforated-probably all zones that appear to be gas productive without water will be perforated in one set up in an overbalanced "veIl bore condition. The zones will be isolated with a packer (and bridge plugs, as needed) and briefly tested individually (or in groups of2-3 adjacent zones with similar log characteristics) from the bottom up, to get gas production rates and to determine if water will be produced. Upon determination of productivity of each zone, the completion string will be run. It should be noted there are no issues regarding any injury to the correlative rights of any offsetting owners. Attached hereto as Exhibit 'B' is a plat of the Kaloa Lease. As you can see the offsetting landowner of the tract contiguous to and north of the drillsite lease, C-61393, for the proposed well is the Cook Inlet Region, Inc. and the minerals under said tract are leased to AURORA being our C-61390 Lease. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and east of the drillsite lease is also the Cook Inlet Region Inc. and the minerals of said tract are unleased. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and west of the drillsite lease is the Mental Health Trust and these MHT minerals are leased to Pelican Hill Corporation under MHT 9200178. The surface owner is the Kenai Peninsula Borough. The offsetting landowner of the tract contiguous to and south of the drillsite lease is the State of Alaska, Department of Natural Resources and these minerals are leased to Unocal under ADL-17586. The surface owner is not applicable due to these minerals being situated offshore. It should be noted, however, all of I ..L "- 3 the above offsetting tracts contiguous to the drillsite lease are in excess of3,000' from the proposed BHL. Exhibit "C" reveals the proposed SL being 1,121' FNL and 1,740' FEL of Section 26 & a BHL of 89' FNL and 165' FWL of Section 25 for the proposed welI for which this spacing exception is sought, and alI other completed or drilIing welIs on the drilIsite lease C-61393, which comprises 3,435.00 gross acres, and adjoining properties are shown. Lastly, upon my receipt of the return receipts for the certified copies of this letter being sent to the parties below, I wiII furnish an affidavit confinning their receipt to you and also verify in same that alI the facts herein are true and correct and that the plats furnished herewith accurately portrays the pertinent and required data for this spacing exception request. Please incorporate this spacing exception request with the APD submitted by Faitweather and give favorable consideration to AURORA's request. If you require additional infonnation regarding this spacing exception request, please contact Mr. Ed Jones, Vice President, Engineering or the undersigned at the number below. Your prompt attention to this matter is sincerely appreciated. Very Truly Yours, Randall D . Jones, CPL Manager, Land & Negotiations rjones@aurorapower.com Enclosures cc: A. Clifford s. Pfoff E. Jones Duane Vaagen C-61393 File Cook Inlet Region, Inc. 2525 "C" Street, Suite 500 Anchorage, Alaska 99509-3330 Attn: Mr. Kim Cunningham LAND Pelican HilI Corporation 1401 North EI Camino Real Suite 207 San Clemente, CA 92672 UNOCAL Alaska Kenai Peninsula Borough I I ..J.....-. ~ 4 909 West Ninth Avenue Anchorage, Alaska 99501 Attn: Mr. Kevin Tabler Land Manager 43335 Kalifomsky Beach Rd, Suite 16 Soldotna, Alaska 99669 Attn: Mr. Bin Popp Mr. Mark Myers, Director Mr. Thomas Irwin, Commissioner State of Alaska Department of Natural Resources 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Alaska Mental Health Trust Authority c/o Mental Health Trust Land Office 718 L Street, Suite 202 Anchorage, Alaska 99501 Attn: Mrs. Wendy Wolfe, Director Tyonek Native Corporation 1689 "C" Street, Suite 219 Anchorage, AK 99501 Attn: Mr. Ted Kroto kaloa 4 aogccspacing exceptionrequest i I i ~, - 5 EXHIBIT " A " FORMATION TOP KALOA 4 KALOA 4 KALOA 2 KALOA 2 M D{FT) TVDSS{FT) MD{FT) TVDSS{FT) COMMENTS KB ELEVATION 0.00 213.00 0.00 213.60 SURFACE ELEVATION 16.00 197.00 16.00 197.60 CARY A 2-1 (TOP TYONEK) 2578.00 -1998.00 2312.00 -2098.00 CARY A 2-2 COAL 2763.00 -2133.00 2472.00 -258.00 CARYA 2-3 COAL 3185.00 -2442.00 2806.00 -2592.00 CARY A 2-4 COAL 3445.00 -2642.00 3026.00 -2812.00 PRODUCING CARYA2-4.1 SAND 3556.00 -2741.00 INTERVAL I PRODUCING CARYA2-4~2 SAND 3660.00 -2834.00 ~~~~~i INTERVAL CARY A 2-5 COAL 3808.00 -2966.00 3380.00 -3166.00 PRODUCING CARYA2..5.1 SAND 3831.00 -2986.00 INTERVAL TO 4730.00 -4000.00 3720.00 -3522.40 -I·_~I~ .:r D ~entTo ¡ D __m__u _ (' TRI/.Kim.--Cunningbam--- m_m______________ _____m__1 r-- Street, Aprl'Vo.; ~:.. ~~- ::~: -~~: --- _2525___C__Stre_e.t.,.__.ste. _ _5Q D________ ___________ City, State, ZIP+4 Anchorage, AK99509-3330 - I ! --.J r-=I r-- r-- .' 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'/K.{.;7.L u'k_uZu_m____u..j ~ l-ëï¡Ÿ,-Stä¡ë'-zIP;;r-;¡;~--;;¡¿---~~~ ¿) / í Postmark Here "-"" r.,,-cÎås>p·øt~t~'f'š~¡.yi.êtf"'1('.""_·::J":':-::\. .. ,:.,:::;?':'. './<~;:"!{:}~ :'CERTIFiEÉlMAIL RECEIPT' . "- ':' (Domestic Mail Only; No Insurance Coveragè Provided) ~À- Re: Kaloa #4 I < I ~ "---.' Subject: Re: Kaloa #4 From: Thomas Maunder <tom _ maunder@admin.state.ak.us> Date: Wed, 05 Oct 2005 12:01: 16 -0800 Tof~(rJQ-nes :~eJc;)t1es@aUioraP()W:er.com> . - - _, _ cc:~:rJe~sè'J0;òhr~äéliér' <J~ss~@fàirWeather.cOm> ~ 'Steve Davies' <steve _ davieS@admin.state.ak·us>, 'Randy Jones'·'<rjones@aurorãpower.com> Thanks Ed. We will move to cancel the hearing. that is likely when the action will take place. Tom Maunder d· ","'t«C. 1 d Jo Y 1S not ~ unt1 Mon ay, so Ed Jones wrote, On 10/5/2005 11:38 AM: Tom, Yes, please cancel the hearing for the spacing exception application for Kaloa #4 (and the application itself), as an exception will not now be needed since we do not plan to test or produce the well. Thanks, Ed Ed Jones Vice President Engineering & Operations Aurora Gas, LLC 713-977-5799 (Houston) 907-277-1003 (Anchorage) -----Original Message----- From: Thomas Maunder [mailto:tom maunder@admin.state.ak.us] Sent: Wednesday, October 05, 2005 1:50 PM To: Ed Jones¡ Randy Jones Cc: Jesse Mohrbacher¡ Steve Davies Subject: Kaloa #4 Ed or Randy, The sundry to P&A this well was processed yesterday. There is a hearing scheduled with regard to the spacing exception necessary to test or produce the well. Since the well will not be produced, there is no need for a spacing exception. Would you please respond and confirm if this is your understanding as well? If we have heard from you by Monday, October 24 we will presume you are in agreement and we will move to cancel the hearing. Thanks in advance for you prompt reply. Tom Maunder, PE AOGCC 1 £\1"-/")£\£\"- 1 ").£\") D~Jr *3 J L '~/ MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: John Norman Dan Seamount Cathy Foerster DATE: October 3, 2005 SUBJECT: Kaloa No.4 Spacing Exception Hearing FROM: Steve Davies, Tom Maunder RECOMMENDATION: Delete the tentatively scheduled public hearing on October 19,2005 from the Commission calendar and issue the spacing exception order on October 18,2005, the day after the deadline for submitting written comments, taking into account any comments submitted (there have been none so far). DISCUSSION: The public hearing is tentatively scheduled for October 19, 2005. The deadline for filing a written request for hearing passed on September 30,2005. No comments or protests have been submitted at this time. The proposed Kaloa No.4 well lies within 3,000 feet of existing gas producer Kaloa No.2, in violation of20 AAC 25.055(a)(4). Kaloa No.2 has been on regular production since October 2004, and in August 2005 the well averaged 2.2 million cubic feet per day. The proposed well and the area of interest extending 3000 feet from the proposed well bore lie on COO fee lease C-061393. COO is the landowner, Aurora is the owner, and the Tyonek Native Corporation is the surface owner. The operator, Aurora Gas, LLC, submitted the application for permit to drill Kaloa No.4 on August 26,2005, with intent to spud on September 2, 2005 in order to drill, complete, test and possibly produce the well during this drilling season. In order to accommodate drilling, completion and most testing of the well this drilling season, the Commission issued a permit to drill for the well on September 9, 2005. The permit was subsequently re-issued on September 26, 2005 because of a change of surface location 8 feet to the east and 25 feet to the south. The permit to drill approval letter stated that testing or regular production of hydrocarbons from any reservoir interval common to existing gas production well Kaloa No.2 is prohibited until the Memorandum 10/3/2005 Page 2 of2 i J _, -- Commission approves a spacing exception, and that Aurora assumes all liability and risk of expense if a spacing exception is not granted. A BOPE test was performed on the well on September 26th. Current operations have not been reported to the agency. Preliminary text for the spacing exception order has been drafted. CONCLUSIONS: Correlative rights will not be jeopardized if an exception is granted. Mfected parties with subsurface interests within 3000 feet are CIR, and Aurora. The current lack of comments, protests, or requests for hearing suggest there are no potential grIevances. The exception is needed to allow testing and regular production from gas-bearing intervals common to the Kaloa No.2 well, which is approximately 2200' away. Steve Davies Petroleum Geologist é::~??4 Senior Drilling Engineer :#;;1.. STATE OF ALASKA I NOTICE TO PUBLISHER. ADVERTISING ORDER NO. ~ L- .'.c"O"""" .~ ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02614012 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie September 12,2005 0 Anchorage, AK 99501 PHONE PCN M - (907) 791 -1221 DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News September 14,2005 0 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BElWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE I AOGCC, 333 W. 7th Ave., Suite 100 I PAGE 1 OF TOTAL OF ;1 TO Anchorage. AK 99:S01 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 I::UJ liMnllt.JT ~v f":f": P~M If": lif":f":T s:v NMR DIST UQ 1 05 02140100 73451 2 3 ....- "'" 4 / f} /,1 REQUISITIONED BY: ( A ~ /{fJ(~d / IDIVISION APPROVAL: 1/ 'j .......... - "'--" V L~~. i i L ---- "-" Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Aurora Gas, LLC ("Aurora") for a spacing exception to allow the drilling, testing and production of the Kaloa No.4 gas exploration well in accordance with 20 AAC 25.055. Aurora, by letter dated August 30, 2005 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on August 31, 2005, has requested the Commission to issue an order in conformance with 20 AAC 25.055 (a)(4) allowing drilling, testing and production of the Kaloa No. 4 gas exploration well, which if productive may be open to regular production within 3,000 feet of a well capable of producing from the same pool. The surface location of this proposed vertical well is 1706 feet from the east line and 1308 feet from the north line of Section 26, TIIN, RI2W, Seward Meridian. The Commission has tentatively set a public hearing on this application for October 19, 2005 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on September 30, 2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on October 17, 2005 except that if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the October 19, 2005 hearing. c al accommodations in order to J y Colombie at 793-1221. Published Date: September 14, 2005 ADN AO# 02614012 '-"'" "L Anchorage Daily News Affidavit of Publication 1001 Northway Drive. Anchorage, AK 99508 GRAND TOTAL OTHER CHARGES #5 OTHER CHARGES #4 OTHER CHARGES #3 OTHER CHARGES #2 PRICE OTHER PER DAY CHARGES ACCOUNT PO DATE AD# $182.40 $0.00, Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission $0.00 $0.00 $0.00 $0.00 $182.40 $182.40 STOF0330 STATE OF ALASKA THIRD JUDICIAL DISTRICT 02614012 601384 09/14/2005 Re: The application of Aurora Gas, LLC ("Aurora") fora spacing exception to allow the drilling, testing and production áUheKaloo No: 4 gasexplorationowellin àê¿ordiJnce with 20 AAC 25.055;' . Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. . . Aurora,. by lettér. dated August 30, 2005 and re- ceived bY the Alaska' Oi I and Gas Conservation .Commission ("Commission") on August 31, 2005} hasreque'sted the Commission to issue an.order in conformance with 20 AAC 25.055 (0)(4) ,allowing drilling, testing and production of the Kaloa No.4 gas exploration well,which if productive may be open to regular production within 3;000 feet of ' a well.capableof produci ng from. the same pool. The surface location of th is proposed vertical well is 1706 feetirom the east linecind 1308 feet from ~:rrgi~trr:- line of$ection 26, T11 N; R 12W¡Sewprp The Commission has tentatively set a public hear-- rngon.this application for october 19, 2005 at9:00 am at the Alaska Oil and Gas Consèrvation Com- mission at 333 WestithAvenue, Suite 100, Anchor- age, Alaska 99501. A person may request thatth~ tentatively scheduled hearing beheld bV filing a written request with the Commission nalater than 4:30~mon September 30,~~:" . That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchora~e, Alaska, and it is now and durin~ all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. If arequestfor a ttearingis notti~eIYfi.ted;if¡:iê' Commission may consider the issÜance otan 01'- derWithoutaheaririS.: To learl;! if the Commission will hold the puþlic h~aring,)lease call 793-1221. In addltión, a person may submit written com- ments regarding this application to the Alaska Òi¡ and Gas Conservation Commission at 333 West 7th Avefluè,_Suite:100, Anchorage, Alaska 99501. Writ- ten comments musf.be received·nolater~thari·4:30 pm onoctober'17,2005except'thatifthe Commis- sion decides to hold a pubIiC-.hearing, written pro; test,orcomments must be:received no íaterfhan the conclusion of the octo~.H9,2oo5 hearing. If YOU areQ person with a disability who may need speCiól accommodations irl Qrder focomment or to' attenc:i the public hearing-,.please contact Jody Co- lombie at 793-1221. . , Signed to me before this date: Subscribed and sworn John 'K. Norman Chairman for the State of Alaska. Alaska Notary Public in and Third Division. Anchorage, 14, .2005 ADN AO# 02614012 . p ublished "p~e:sep}ember & .. \ \ \ l ({..(.{(. (r If. (¿ . - 9>~~":~ ~A...I(:~~ . ~~ '. ..,""..···~A..... ><.:2 ¡s . :.." ri ,. A ~ ;..: v~-::. "- .... ,\","-. ·-"'Ír· -;:. ~. e~~ . ~ '- . . ---- ::: : Þt. ;~~ \C : =: _ ~ . \~~'J><>' . ~:.:: -::.__ . üt~ ... ... co .~ . Æ-'" ~ Çt . . ~¡.... ~~. ~ ~ ~<~.' .~-OF.. ~\.J.~... t~·~ /,¡ . . . . . . '~h\'" "r ~ ~ . ~":! ~\' "\ ..../) , I ~;;o.111fW.' ), \ IJ}))))}}\ MY COMMISSION EXPIRES: ~ Re: Public Notice I -.-~ -'-" Subject: Re: Public Notice From: "Ads, Legal" <legalads@adn.com> Date: Tue, 13 Sep 2005 11 :53 :40 -0800 To: Jody Colombie <jody _ colombie@admin.state.ak.us> Hello Jody: Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 601388 Publication Date(s): September 15, 2005 Your Reference or PO#: 02614013 Cost of Legal Notice: $182.40 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $182.40 Your Legal Notice Will Appear On The Web: www.adn.com: XXX X Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 9/13/05 11:03 AM, "Jody Colombie" <jody colombie@acimin.state.ak.us> wrote: Please publish 9/15/05. 1 of 1 9/13/2005 3: 11 PM Re: Public Notice I i -L- ~' .~ Subject: Re: Public Notice From: "Ads, Legal" <legalads@adn.com> Date: Tue, 13 Sep 2005 11 :49:02 -0800 To: lody Colombie <jody _ colombie@admin.state.ak.us> Hello Jodie: Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 601384 Publication Date(s): September 30, 2005 Your Reference or PO#: 02614012 Cost of Legal Notice: $182.40 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $182.40 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: ._~ Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 9/13/05 9:21 AM, "Jody Colombie" <jody colombie@admin.state.ak.us> wrote: Please publish 9/14/05. Jody 'C~ 1 of 1 9/13/2005 1 :04 PM 02-902 (Rev. 3/94) Publi 'Original Copies: Department Fiscal, Depa nt, Receiving AO,FRM ~ -" STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO" CERTIFIED AO-02614012 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F R o M AOGCC 333 West ih Avenue. Suite 100 A nr,hor:;wp A K QQ"O 1 907-793-1221 AGENCY CONTACT DATE OF A.O. Jociv ro~, III ih;~ ~~ it Ihpr 12. 2005 PHONE PCN (907) 791 - 1221 DATES ADVERTISEMENT REQUIRED: T o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 September 14, 2005 THE MATERIAL BElWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. A IT ACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2005, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd, Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 '-~ Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc, 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 -" David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr, PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 Public Notice --- Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Tue, 13 Sep 2005 09:22:26 -0800 To: Cynthia B Mciver <bren _ mciver@admin.state.ak.us> Content-Type: application/msword Kaloa _ 4 _Spacing_Exception _ Notice.doc Content-Encoding: base64 1 of 1 9/13/2005 9:24 AM Public Notice 1 of 1 "- - Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Tue, 13 Sep 2005 09:21 :55 -0800 To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish 9/14/05. Jody Content-Type: application/msword 'Ad Order form.doc Content- Encoding: base64 --- ------ ---- --- --------- - - - - -- ----- ------ ------ Content-Type: application/msword Kaloa _ 4 _ Spacing_Exception _ N otice.doc Content-Encoding: base64 9/13/2005 9:24 AM Public Notice Kaloa No 4 '-.......... ~ Subject: Public Notice Kaloa No 4 From: Jody Colombie <jody_colombie@admin.state.akus> Date: Tue, 13 Sep 2005 09:24: 11 -0800 To: undisclosed-recipients:; BCC: Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>,· roseragsdale <roseragsdale@gci.net>, tnnjr 1 <tnnjr 1 @aol.com>, jbriddle <jbriddle@marathonoil.com>, shaneg <shaneg@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibellLcom>, Mark Dalton <markdalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P . Worcester" <markp.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.akus>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah 1. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gcLnet>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, bocastwf <bocastwf@bp.com>, Charles Barker <barker@usgs.gov> , doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark Kovac <yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, j ej ones <j ejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@aknet>, jah <jah@dnr.state.akus>, Kurt E Olson <kurt_olson@legis.state.akus>, buonoje <buonoje@bp.com>, Mark Hanley <mark~hanley@anadarko.com>, loren_Ieman <loren_Ieman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, nnclean <nnclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.akus>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe <lambes@unocal.com>,jack newell <jacknewell@acsalaska.net>, James Scherr <james_scherr@yahoo.com>, david roby <David.Roby@mms.gov>, Tim Lawlor lof2 9/13/2005 9:24 AM Public Notice Kaloa No 4 - --- <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, Jerry Dethlefs <n1617@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Harry Lampert <harry.1ampert@honeywell.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary Rogers <gary _rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Phillip Ayer <pmayers@unocal.com>, Ken <ken@secorp-inc.com> ----- -- - - ------ --~- Content-Type: application/pdf ! Kaloa _ 4_ Spacing_Exception _ N otice.pdf Content-Encoding: base64 20f2 9/13/2005 9:24 AM ~1 .~ '- wwwaurorapower.com c ¡]:=.~ F fj'!l. ~¡;¡=. 1---\ t: ~~~; t: i V t: -) AUG 3 1 2005 ~Aurora Gas, I.I.C A¡a~ka Oi! & GðE Caits. CQmmissiQn Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite No. 100 Anchorage, Alaska 99501-3539 August 30, 2005 AfltHfjrage Gentlemen: RE: Application for Spacing Exception Permit to Drill Kaloa No.4 Well C-61393 Moquawkie Area Attn: Mr. Steve Davies Petroleum Geologist Reference is made to the recently submitted Application for Permit to Drill (APD) in behalf of Aurora Gas, LLC (AURORA), as Operator of and applicable to the captioned proposed development well. This letter respectfully requests the APD be approved with certain limitations placed upon AURORA, as discussed below. The Kaloa No. 2 Well, the only well currently producing upon the captioned lease, is producing gas from the Upper Tyonek Formation, Carya 2-4-2 interval, at a surface location situated in the NW 4NE4 of Section 26, Township 11 North, Range 12 West, SM. The proposed well is also planned to test gas at three (3) intervals shown in yellow on the attached Exhibit "A", but unfortunately is also planned to have a SL situated in the identical NW4NE4 of Section 26 and a BHL within the NW/4NW4 of Section 25, both further identified below, but could have a completed zone within Section 26. Both wells would be lease wells and not situated within the confines of any unit. Consequently, the proposed well will require a spacing exception location pursuant to 20 AAC 25.540. Consequently, this letter respectfully requests the AOGCC give favorable consideration to approving AURORA's APD, but AURORA recognizes, if approved, the AOGCC would prohibit AURORA's ability to produce said well from the producing zone in the Kaloa No.2 Well, the Carya 2-4.2 sand seen between 3,158' to 3,552' MD, until the completion of the spacing exception process for understandable reasons. However, in anticipation of a presumable conditionally approved APD, please be advised AURORA may elect to accept all business risks associated with the drilling, perforating and testing of this well prior to the spacing exception process; including, but not limited to, the thirty (30) day public notice period being fully completed. Notwithstanding that such action, if taken, would not be recommended by the AOGCC, please understand AURORA's rational is (i) to take advantage of the present ideal drilling conditions during this summer season, (ii) the economic considerations of keeping our drilling personnel intact from cessation of drilling operations at our Aspen No.1 Well to the commencement of drilling operations of the proposed well and not subjecting them to a potential six (6) week suspension between wells, (iii) our assessment of the minimal risk of exposure to possible protest from third parties since the BHL of the proposed well is further north and east than the existing BHL of the Kaloa No.2 Well, 10333 Richmond Avenue, Suite 710 · Houston, Texas 77042 · (713) 977-5799· Fax (713) 977-1347 1400 West Benson Blvd., Suite 410. Anchorage, Alaska 99503· (907) 277-1003· Fax (907) 277-1006 -" "-- 2 and (iv) the need to utilize the drilling rig under contract for the proposed well to drill and test two (2) other wells at our Three Mile Creek Unit commencing after completion of testing of the proposed well, but no later than October 15 so as to be finished before mid- November since the rig is not winterized. This spacing exception proposal, if approved by the AOGCC, would allow AURORA to commence drilling operations and test the intervals of interest, as identified on Exhibit "A", but not produce hydrocarbons from this Carya 2-4.2 zone in the well until the spacing exception process in concluded, notwithstanding any assumption of business risks decision made by AURORA after the APD is approved, but before the spacing exception decision is rendered. AURORA's operational, drilling and testing program is briefly discussed below for your benefit. AURORA plans to drill the proposed Kaloa No.4 Well to sufficient depth to test Upper Tyonek ("Carya") sands that are productive in the Kaloa No. 2 Well. All sands are expected to be structurally higher in the No.4 than in the No. 2 Well. The Kaloa No.2 Well is completed in three sand lobes of the Carya 2-4.2, which has proved to be productive, producing more than 1 BCF to date, and still capable producing at a rate of about 5 MMcfpd. The total net thickness of these sands is about 150' in the No.2 Well. The plan is to drill the proposed well to 4,750' /4,000'MD/TVD and run a full suite of open-hole logs, probably including: array induction, formation density, compensated neutron, di-pole sonic, formation micro imager, side-wall cores and formation pressure tests (Schlumberger's MDT tool). Following the setting and cementing of 5-1/2" production casing and analysis of these logs, the well will be perforated-probably all zones that appear to be gas productive without water will be perforated in one set up in an overbalanced well bore condition. The zones will be isolated with a packer (and bridge plugs, as needed) and briefly tested individually (or in groups of2-3 adjacent zones with similar log characteristics) from the bottom up, to get gas production rates and to determine if water will be produced. Upon determination of productivity of each zone, the completion string will be run. It should be noted there are no issues regarding any injury to the correlative rights of any offsetting owners. Attached hereto as Exhibit 'B' is a plat of the Kaloa Lease. As you can see the offsetting landowner of the tract contiguous to and north of the drillsite lease, C-61393, for the proposed well is the Cook Inlet Region, Inc. and the minerals under said tract are leased to AURORA being our C-61390 Lease. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and east of the drillsite lease is also the Cook Inlet Region Inc. and the minerals of said tract are unleased. The surface owner is the Tyonek Native Corporation. The offsetting landowner of the tract contiguous to and west of the drillsite lease is the Mental Health Trust and these MHT minerals are leased to Pelican Hill Corporation under MHT 9200178. The surface owner is the Kenai Peninsula Borough. The offsetting landowner of the tract contiguous to and south of the drillsite lease is the State of Alaska, Department of Natural Resources and these minerals are leased to Unocal under ADL-17586. The surface owner is not - ---- 3 applicable due to these minerals being situated offshore. It should be noted, however, all of the above offsetting tracts contiguous to the drillsite lease are in excess of3,000' from the proposed BHL. Exhibit "C" reveals the proposed SL being 1,121' FNL and 1,740' FEL of Section 26 & a BHL of 89' FNL and 165' FWL of Section 25 for the proposed well for which this spacing exception is sought, and all other completed or drilling wells on the drillsite lease C-61393, which comprises 3,435.00 gross acres, and adjoining properties are shown. Lastly, upon my receipt of the return receipts for the certified copies of this letter being sent to the parties below, I will furnish an affidavit confirming their receipt to you and also verify in same that all the facts herein are true and correct and that the plats furnished herewith accurately portrays the pertinent and required data for this spacing exception request. Please incorporate this spacing exception request with the APD submitted by Fairweather and give favorable consideration to AURORA's request. If you require additional information regarding this spacing exception request, please contact Mr. Ed Jones, Vice President, Engineering or the undersigned at the number below. Your prompt attention to this matter is sincerely appreciated. Very Truly Yours, 72~rdP~ Randall D. Jones, CPL Manager, Land & Negotiations rjones@aurorapower.com Enclosures cc: A. Clifford S. Pfoff E. Jones Duane Vaagen C-61393 File Cook Inlet Region, Inc. 2525 "C" Street, Suite 500 Anchorage, Alaska 99509-3330 Attn: Mr. Kim Cunningham LAND Pelican Hill Corporation 1401 North EI Camino Real Suite 207 San Clemente, CA 92672 .~ '- 4 UNOCAL Alaska 909 West Ninth Avenue Anchorage, Alaska 99501 Attn: Mr. Kevin Tabler Land Manager Kenai Peninsula Borough 43335 Kalifomsky Beach Rd, Suite 16 Soldotna, Alaska 99669 Attn: Mr. Bill Popp Mr. Mark Myers, Director Mr. Thomas Irwin, Commissioner State of Alaska Department of Natural Resources 5 50 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Alaska Mental Health Trust Authority c/o Mental Health Trust Land Office 718 L Street, Suite 202 Anchorage, Alaska 99501 Attn: Mrs. Wendy Wolfe, Director Tyonek Native Corporation 1689 "c" Street, Suite 219 Anchorage, AK 99501 Attn: Mr. Ted Kroto kaloa 4 aogccspacing exceptionrequest , , LEGEND ~ CIR! SURFACE AND SUBSURFACE ~ CIRI SURFACE ESTATE/SAND & GRAVEl 1,·,··'·'··1 CIRI SUBSURFACE ESTATE ONLY IAWiNVJ TYONEK SURFACE ESTATE/CIRI SUBSURFACE VN.',·'¡ TYONEK SELECTIONS· Conditional lease areas under review IIIIJJIIIID CIRI COAL, OIL & GAS IIIIIIIIIIIIIII PRIVATE LAND ~ NATIVE ALLOTMENTS LID ElOROUGH SELECTED ~ BOROUGH APPROVED - .... ~ MAIN ROADS ~ - - - SECONDARY ROADS t::::: AIRSTRIPS -4- ELECTRIC TRANSMISSION LINE Moquawkie Lease Map COOK INLET REGION, INC. Feb. 1, 1995 dlB 1) BASIS OF COORDINATES is ALASKA STATE PLANE NAD 27 ZONE 4 FROM A DIRECT TIE TO ADL NO, 31270, 2) BASIS OF ELEVATION IS FROM TIDAL OBSERVATiON ON 9-22-93. DATUM IS MLLW, ALL ELEVATIONS SHOWN HEREON WERE TAKEN ON GROUND, 3) SECTION LINES SHOWN HEREON ARE BASED ON PROTRACTED VALUES, KALOA NO.4 WELL AS-STAKED SURFACE LOCATION DIAGRAM APPLICANT: ENGINEERING/MAPPING/SURVEYlNG/TESTING P.O. BOX 468 SOLDOTNA. AK. 99669 VOICE: (907) 283-4218 FAX: (907) 283-3265 EMAIL: msmclaneOmclanecg.com PROJECT NO, 053075 DRAWN BY: MSM DATE: August 25, 05 SEC. LINE OFFSETS: 1121' FNL 1740'FWL LOCATION: PROTRACTED SECTION 26 TOWNSHIP 11 NORTH, RANGE 12 WEST SEWARD MERIDIAN, ALASKA . . e;Jl1-!¡ J3 / r \,\ (' - 2... " ,-' "t ......' OF Ai " 2~~""*'''''''1~1', - i?'" '.~,~ I :: * ....49 IIi ""r* ~ ,.".,.,..".......,...,..,...,..",.." ~ , ~ ~ ,.'.'."'....."'...'.'.....'.'..... ,." ~ ~ '..,1.1. SCOTT MCLAN~:~ff : ,,"'i:" 4928-5 ....,ft- ~ '~'" ,.' '3 - ~I A··'···..,·" #> .: '" 1i'C\<"rSSION"\.. \.. ...... "n,-,'" , . I . ~ PROTRACTED SECTION 26 TOWNSHIP 11 NORTH RANGE 12 WEST SEWARD MERIDIAN ALASKA WITHIN U.S. SURVEY NO. 1865 AS BUILT KOLOA NO. 1 SU RF ACE LOCA TI ON NORTHING: 2566877.080 EASTING: 260693.06 LAT: 61°01'08.584"N LONG: 151°20'56.508"W SCALE 1 inch = 500 ft. o 500 ~-~ 750 I Consulting <1" roup Testing ) t> c. 2Jf) NWN!F ~ 1000 I NORTHING: 2568137.490 EASTING: 262506.440 LAT: 61°01'21,360"N LONG: 151°20'20,242"W S23S24 S26 S25 AS BUILT KOLOA NO. 2 SURFACE LOCATION r-.: NORTHING: 2566864.64 LL EASTING: 260774.49 ~ LAT: 61°01'08.478"N n LONG: 151°20'54.851"W / ELEV: 197.4 1706 FT. FEL --.J Z LL NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1". 2) ELEVATION DATUM: MLLW NOAA BM5869H 3) SECTION LINE OFFSETS DERIVED FROM THEORE~CAL BLM PROTRACTED SECTION CORNER VALUES 4) ALASKA STATE PLANE ZONE 4 NAD27 KOLOA NO.2 SURFACE LOCATION APPLICANT: ENGINEERING/MAPPING/SURVEYING /TESTlNG P.O. BOX 468 SOLDOTNA, AK, 99669 VOICE: (907) 283-4218 FAX: (907) 283-3265 EM AIL: msmclane@mclanecg.com PROJECT NO, DRAWN BY: 033008 MSM DATE: June 21,2004 OFFSETS: 1706' FEL 1308' FNL LOCATION: PROTRACTED SECTION 26 TOWNSHIP 11 NORTH RANGE 12 WEST SEWARD MERIDIAN ALASKA <;;::; o <;;::; ¿¡ f'" 11'). N Kaloa No.4 Proposed 1-Gas 2051310 SFD 8/29/2005 . . CHECKLIST - SPACING EXCEPTION APPLICATION API NUMBER OPERATOR FIELDIPOOL WELL NAME 50283201150000 PROPERTY IDILEASE AURORA GAS LLC ALBERT KALOA, UNDEFINED GAS KALOA 4 CIRI-Fee VERTICAL DEVIATED EXPLORATORY Yes DEVELOPMENT GAS OIL SURFACE LOCATION PRODUCTION INTERVALS (Top and Bottom) BOTTOM HOLE NO LOCATION NO LOCATION NO LOCATION NO LOCATION Check applicable reason(s) for spacing exception per 20 AAC 25.055(a): NA Spacing Exception requested to (1) to drill a well for oil within 500 feet of a property line where ownership or landownership changes NA Spacing Exception requested to (2) to drill a well for gas within 1500 feet of a property line where ownership or landownership changes NA Spacing Exception requested to (3) to drill and complete more than one oil well in a governmental quarter section; or NA Spacing Exception requested to (3) to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool Yes Spacing Exception requested to (4) to drill and complete more than one gas well in a governmental section; or Yes Spacing Exception requested to (4) or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool. Yes Does the application contain a brief explanation for why the operator has chosen to drill the specified location. No *- J,¿S ( Does the application contain a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for .oilor within 3,000 feet of a well or por!j.on of the well requirin~ the spacil}9 J exception that is drilling for gas,~'á,:?> 07".'7 L.:..d Ý{Vy6ÿ"1 ~ L.<.. 1~¿,uVv('f<:-d Does the application contain the nameŠ of a owners, landowners, nd operators of all pr ' ies within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas, Does the application contain acopy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Does the application contain an affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data, If the operator requests a variance from the notice requirements of 20AAC25,055(d), does the application contain sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area, Yes Yes Yes NA .¿ kd( Sent By: AURORA#POWER; ",. . 7139771347; se.-05 13:42; Page 1/2 ~-' .~--., ~!·'..""'''D '~ðS' I..,',. a .,.. ,"...~.,..u":,· '.";&ìï~ 10333 Richmond, Suite 710 ~:~:i1~~~~:;::i;f þ~, f t: Fax:713~977-1347 Fax Transmittal Form ~ TO~_~ From: Fax. Data: Phone: Peg_: Re: cc: o Urgent o For Review 0 Please Co.nrnant 0 Please Reply 0 Please Recycle ~/()J r ) prJAY (./hi, lk ~ ¡¿J~ ij/WJ-.- ~:hJ jkW. ~~ fd- ~/yJA ~. I~ 0 ~ '1 ¡fðt Cc A-J &. ~~¥I / . ~~y~Cto/vr ~ ~. N~'( ~",...i ~~ __, and/or ,,",íIeged. TIll, fax~"!he I"d,~d· ual named above. If the reader of this transmittal page Is not the intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination, distribution, or copying of this fax or the Information contalnej herein is prohibited, If you have received this fax in error, please immediately notify the sender by telephone and return this hx tn the sender at the addre$$ above. Sent By: AURORA#POWER; . 7139771347; see05 13:42; Page 2/2 NDER: COMPLE7'E THIS SEÇT/ON COMPLETE THIS SfiÇTlON ON DELIVERY èomplete itemS 1, 2, and 3, Also complete item 4 If Resl:ri<ted Dellvety h. desired. Print' your name and addres3 on the reverse so that we can Ml.lm the card to you. Attach this card to ¡f:I , back qf the mallpJece, or on the front If s ' pennit.$, Article Addresse<;l to: A, SlgnBture x I:] Ageot o Addressee C, Date 01 DeliVery ,- 'uok Inlet RegionØhc ttn: Kim Cunningham 525 C Street, Suite 500 11churagc, AK 99509-3330 0, Is ØBIiver'y addl'$SS different from item 11 DYes If YES, enter delivery addrl!sa below; [J No :,'I, $érvlce Type I;!!I' Cenlflad Mail tJ E)(~$ MaU o ReglB1:ered [J I=!fJtI,Jrn Receipt for Me",hál'\rll~A D Insured Mall 0 C.O,D. 4, RðStrlcted Del~very? (Extra Foo) 0 Yas Article Number (Tnm~fer from servl~ ' ; Form 38' 1,!,~þ.~l!~'Y?Q.~ 700~ 1160 0006 5337 8771 Domestic RcrtOfn Reœlpt . .. . ..."." .."..--...---.-........... 10259&<J2-M-1510 .. Sent By: AURORA#POWER; . 7139771347; seP.5 11 :09; Page 1 . G ' .,,,.::, ·..D'·'::.....·:":..':·:..:·'..·'·:"·.··:·:"·'..',:,' ..,......:....... ·".11.6 ,:" :,...... m~: a·" :.. '8' S: ..... . . .',.. .....'. ",' . ". .. . . ' , ". " ,. . ". ," ..,. ,.,. , ....,., '" ", . .' .'. ',.., , , .' '. , .... ." " . .... . , . . . . 10333 Richmond, Suite 710l{f:'rr/'.".. ." Houston, Texas 77042'''>< ~"'Jl::l ~ ¡i~r:'" h, Phone: 713-977-5799 V (,,,,~IJ Fax: 713-977-1347 it '~ C¥I.r,¡ n ~~ . Q.;r>.. (" ~"ik.:' ,,''''' ......;:.h,~.". "" "~c~_ "., '>r'" " .,,'f/! ""l'} Fax Transmittal Form Date: TO:,1É2- Fax; ~".. ...... .,.......,.....~.,-....._,_..- From; -.-..............-~.,..'~... Phone: P.ges: Re= ...,·.',,,,,..,,·"'"t'I..__.'.....'.."""M.''Io\J.,____ cc: r/~ r ) FfrJty o For Review 0 Plea.. Comment 0 Please Reply 0 Pi.... Recycle (..þr¿i, ~ ~ 1J J'J.; f.~ ~ 77J ~{Zç- M~id~~/PM ~- /..}¡N ~.í# ~ '1 J1ðt ce pa.¡ &. Þ<.-~ "r ~~r'~C~ ðJ~ µ o Urgent :t ~ ~. NOTE: The information contained In thIs fax Is confidential and/or privileged. This fax is intended for the sole use on the individ- ual named above. If the reader of this transmittal page is not the intended recipient or a representative of the intendl!d recipient, you are hereby notified that any review, dissemination, distribution, Or copying of this fax Or the information contaJl'lecl herein is prohibited, If you have received this fax in error, please Immediately notify the sender by telephone and return this !1IX to the sender at the address above. .~ ex: w 3: o 0... '*" « ex: o ex: ::J « ~ I:IJ -I-' !:: Q) U) 1 . I 4'-rticia t-.I~ber (rl'Msfer from saMca tabaJ) 7004 3. Service 1)'P& J51' CertifiecI Mail 0 Express Mall D R.e¡¡1:rtered 0 Aelum Reoeipi for Men:nandis& o Ine.MÐd Mail 0 C.O.D, 4. Restricted Delivery? (Extra Fee) 0 Yes 11bO ODOb 5337 8788 Au1hority Al1icle Addressed In: Alaska :Mental Health Trust Attn: Wendy Wolfe 718 L Street, Suite 202 Anchorage, AK 99501 DNO ~ J:-C-~ ÁI3^!I&O ~G e¡øQ ~o ¡ueDvO :01 pas$QJPP'f ðO!P' 'S~1IJJJOO eoeds ~! ~LID.IJ e~ 00 JI 'e:>Ð!dll'Bw-ettie )0Bq el.j¡ o¡ PJf.':' S!LH t¡:>ÐW 'nOh ot ~ eq¡ UJI1\9J ue:) eM µ¡~ 0 ØSJ9Mi1 e~ uo SSaJppe put! eweu JOot< :¡U¡J. "peJlS6P S! ÁJ9^1eQ pe¡oµ¡se~ ~! V tue: ~ldlJJOO os¡'\{ °e pue 'l: '1 iW&¡j &¡8ldt.l.lO~ , Complete items 1, 2, and 3. Also COO1Øete Item 4 if Restricted Delivery ie desired, Print your name and address Or\ the reverse so that 'He can return the card to you. Attach ti1is ca<d to the back of the mailpieoe, or D!1 the front if space permits, D. 1$ dei\oery addrasa dfIerent from (f YES, enter deWerl address ~t~9 ¿EE~ 90DQ Q9~~ SiI).. 0 (aø;¡'~ ~ pøp~ 't> '(ro"~ 0 I!ÐW peJnSUl [:] 9S!P~Lo\I ~ ¡Ij!EI06IH WI\I&I::I 0 pa.¡91S1~ 0 Ile~ $SJdxa i:I !B)\ pey¡¡»O 12!1 ~~l BO!ILIiIS OK~~-_~D -e ¡d1B<J9!i uJn¡a~ O§5euÖlj'~ ~~::I7Cil£ wJO" , (t9qBt ~ WOJ .J9j$tJPJ~ ~I.M.JG ·2005 PM ~NeW; .. OÇ66)IV '~¡Jmm:¡: :mU:)AV 11,6 ¡9~M. J~lqB~ U!I\;I)I :\ qSBtv 'lVJO ! ! . . · Comp~tEl It9ffis 1 , 2, ai1d 3. Also complete Item 4 if Restr1cted Deli\lery Is desired. · Print your name 8lld address on the reverse so t1\at we can return the card to you. · Attach this card to the back of tile mailpiece, . ~ or on the front if spaDe pelmlts. m ~ ,Miele Aójressed tÐ~ ~ ~ State of Alaska. .LD epartment ofNatura[ Resoùrces .ttn: Mark MyersIThomas m\'in ~ 550 West 7" Avenue, Suite 8oo Q) U) Anchorage, AK 99501 I"- .q C") l"- I"- m C") ~ I"- Article Number (J'l'Ilf]Sfer /rom serviœ labelY '8 Form 3811 , Februaly 2004 7004 1160 0006 5337 8795 DomI<$!ic A.m.n Receipt 102595-OO-M-1540 3, 4, Service Type fi! Certified Mall 0 Express Man o Reg&ter&cI 0 RetUrn RÐceipt tOr Merchandise o Insured Mail 0 C,O,D. Re:rtricted Delivery'? Extta Fee) [] Yes ON D S9)... 0 :o~~wep!lJ'\ 'S1!WJ9d eœds I! }UOJ. el~ 00 IC 'eoe!dl¡Bw eLB ~o )3'9q et4~ OJ p.æ:> $!~ j,pe~" 'noli OJ pm:> ¡¡4~ ~ ueo 8M ¡,an 0, EÞSJe/tSJ 91.3 un ssalpPB pue aW!!u JnoA ~LJµc 'PaJ!GE'P $! Ñ:M!¡9(] p&p'J~!::I ~! "r W9t B¡a¡d 00'" '£ pLl!! 'z '~ SLU~ ~ldW08 , (\ Q) 0) (tj 0... ~ D (EI6; EIJþ'3I ¿.oI.JlV'¡Je(J pe¡::lJSEII:I 'Q"O~ 0 1(E!L't pa.¡nsUf 0 ..s!puelplEl~ J~ ¡dle:)8~ wnB1:I D pEIJiIJS!Õ~ 0 l!I1rt ssaJdx3 D ,ge~ )e!l~ B aod,;~~""es (JþÇ~ '''NXI-oegroL ¡d~ WI\IØè :)!¡sawO(! - - ~099 ¿EE~ 9000 09~~ MOO¿ '1' '~ 91 66966 IDJSew 'mnop ~!ns "JY~I1P~H ,lÍ)sw0J!tEX S£i ~~d ma :u I(.fnru:og B¡U!U:)d !En VOOl: ÁI13flJq9:1 ' ~ ~ 8E I.IJ.IO~ " Ú'e!/i!t EI<\I^JBIf W£tI,i J&;StÆI. ; Jeqwn~ eI3!U' Sent By: AURORA#POWER; þ . \' FecEx~\, F:Xpress 1: 019Œ116 Ef b9Dvt ~n f ~ 7139771347; seP.5 11 :09; Page 3/4 VrT IIN bJryIOP ICpy!838 Nf n qi jt -1001492: 5.5754 Gf eFylFyqlf t t Dvt tpn f slTvqqpalLkÐdf 49861Bjs< bz\ ICpVIfMbS3 N pevrf1!l -!5u IOpps N f n qi it -!lX)!49227 Uf rflqi pof ;!: 12.47: .4711 Ui f !Q)~joh!jt!1i f !q!'{>pgpgef t)'Iisz!zpv!!frvft lfe!xjli Iii f lU'bdljohlovn cf 518: 34855: 862: I Ef rjW ~I..bg')sn bljpo; TLbUlt : Tjhof elQjslcz: Tf So\jdf hzqf ; Ef I)W g e MIVBBTDI Twoeb::e!Fow rpqf Ef rjW szlrpdbljpo: Ef rjvJ sz !sbli ; 4441X 8 Tf qI3-!3116121 ;43 Ti jqqjoh!.bg>SfI bljpo; UWdl joh!ovn cf s; 8: 34855: 862: Sf djqjf <;II..! Túv.f !Eb~ft Blbt I b!P jrt'l !H bt !Dpòt f SIIb~po!Dpn n j 444!X f t ~Tf vi au !Bw ovf Tvjlf !211 Bodi p!'bhf -IBL!: : 612!VT Sf g sf odf LJ bol !zpvlg>sldi pptjoh!GeFy!Fyqdttl () eFy!X p:mx jef !Dvt ¡pn f slTf 9I'4df 2I911/HpG' eFy!2/911/574/444: Tijq!eb¡J; X fjhi Lt Ti jqqf s; 8rj1lt b!\MecprH bjb Bv::¡ptJ!Qpx f s 21444!8..o1 NPQE!BW TVJ..F!821 I PVTUPO-!LN!88153!VT Bv::ptl!Hbt Œbaez Tf q!2·!3116 116!rot I Sent AURORA#POWER; 7139771347; seP.5 11 :09; Page 4/4 oJ AFFIDAVIT OF FACTS Regarding Spacing Exception Application, Koloa No.4 Well, Kenai Peninsula Dorough, Cook Inlet, Alaska. The purpose of this AFFIDAVIT OF FACTS dated effectíve Augu!;t 28, 2005 is to confirm to the Alaska Oil and Gas Conservation Commif¡sjon, 333 W 7th Avenue, Suite No.1 00, Anchorage, Alaska 99501-3533, AUn: Mr. Stevt: Davjt)s, Petroleum Geologist, certain facts and stipulations regarding the ownership ofthe minerals, surface ownership and other pertinent facts regarding certain lands, leases, and leasehold of lands situated within the captioned borough and subject to a Spacing Exception Application recently submitted by Aurora Gas, LLC, as Operator of the proposed well cited in the Application. to the Alaska Oil and Gas Conservation Commission, hereinafter referred to as the uAOGCC", pursuant to 20 AAC 25.055. WHEREAS, my name is Randall D. Jones, CPL and I am employed as Manager, LAND & Negotiations at Aurora Gas, LLC, hereinafter referred to as "AURORA", 1 have over twenty-five years of experience in Land Management and my present responsibilities encompass all Land Management duties at AURORA allowing me to be knowledgeable about the facts contained within this AFFlDA VLT. NOW, l'HF.RF.FQRR, let it he known AURORA's Koloa No.2 Wen is currently producing gas from the Upper Tyonek Formation, Carya 2-4-2 interval, at a surface location situated in the NW4NE4 of Section 26, Township 11 North, Range 12 West, SM. The proposed Koloa No.4 Well is also planned to test gas at three (3) intervals being as follows: '-FORMATION KALOA 4 KALOA 4 KALOA 2 KALOA 2 TOP MD(FT) TVDSS(FT) MD(FT) - ..,..........,'~,............".........~...... ._"-"" ""',,,.~,--- TVDSS(FT) COMMENTS CARY A 2-4.1 _.-',,\\~...., PRODUCING SAND 3556.00 -2741.00 3155.00 -2941.00 INTERVAL ~._~.".- f-->....,'''^"''. 0'- ,.._.........._------""~'....."- CARYA 2-4.2 PRODUCING SAND 3660.00 -2834.00 3248.00 -3034.00 INTERVAL C-:='-- CARYA 2-5,1 PROIJUCING SAND 3831,00 -2986,00 3400.00 -3186.00 INTERVAL , but unfortunately said well is also planned to have a SL simated in the identical NW4NE4 of Section 16 and a BHL within the NWJ4NW4 of Section 25, both further identified below, but could have a completed zone within Section 26. Both wells would be lease wells lUlder AURORA'S C-61394 Lease and not simated within the confines of any unit_ Consequently, the proposed KolaR No_ 2 Well will require a spacíng exception location pursuant to 20 AAC 25.540. Sent By: AURORA#POWER; .. 7139771347; sep-~~ 15:00; Page 1/2 "'"" '""" ,/ l '::g»:'·:"·:'N';':"';·V:':·"':'."·::;';':;'\",¿.,:.,':,;'!¡::';"'.'" 8·;:'1:,::'.··..,··":"..·:,:,,..".."..1·" .£' ::, 'c ...:: (:: I ',\' .::y:~:(:~~y :.~.. '.~' ··A.;,," I, \'::''',::' '::-: """',:: .", ,," .. : ..,' . ", ,'," '.' ,:..'...,'... ,..,.. iÎ ,.., ',:',' iH·t1!·~7~ i:·'~·'~ 10333 Richmond, Suite 710 Houston, Texas 77042 Phone: 713-977-5799 Fax: 713-977-1347 (~r~ -'¡fII'" "'JI'¡¡ " ,¡ N"" :;,>,,,""T " ~'\~ e- \.;J4! uar"''' ' .. A, .....~..::ø, Fax Transmittal Form To: ~ From; Fax: Date: Phone: Pages: Re: .,,IT cc: '/~ r ) =¡Jl.y o Urgent 0 For Review 0 Please Comment 0 Please Reply 0 PI__ Recycle f.þœi¡ 1h ~ ¡ZJ~ tJ.~ ~ h ~f¡2_ bµ~ jd- ?-IJJA ~. !~.~ ~ f{¡1ðçæ ~&.t.~_¥ .~~Y'~C~ :t . ,~ Cff'x.< i,"U.-(,.J NOTE: The ¡nforma contained In this fax is confidential and/or privileged. This fax is intended for the SOle use on the Individ- ual named above. If the reader of this transmittal page is not the intended recipient or a representative of the intended recipient, you are hereby notified that any review, dissemination, distribution, or copying of thi$ fax Qr the information contained herein is prohibited, If you have received this fax in error, please Immediately notify the sender by telephone and return this fa:< to the 7;¡;¡;:a7ø Ó~ CcwJ '. \ Sent By: AURORA#POWER; . SENDER: COMPLeTE rHIS SECTION · Complete Ita,ms 1, 2, and 3. Also complete item 4 If Ae$trlcted Delivery ia dèslred. · Print your name and address on the reverse $0 that we C~ return the card to you, · Attac:::h thIs cSlrd /Q the b<lck of the mailplece. or on the front if space permits. - -- 1. Article Äd(l,,,ssed to: Pelican Hill Corporation 1401 North EI Camino Real Suite 207 San CJementc, CA 92672 2. Article Number (flBn:llfer from S9TVlcø labe/)' PS Form 3811, Febf\!ary 2004 7139771347; seilìÞ-05 15:00; Page 2/2 3. Service 'TYPe ti" Certified Mall C] ExþnlSl¡ Mall o Reg\$!ered 0 Rat\lm necalp\ fOf MercI'Iandl$B o Insured Mail D (;,O.D. 4. Re5tri~ [)olivary" (Extr.J Fell) 0 YÐ! 7004 116D ODD6 S337 8825 = -= - ---.:. = -:: ::: DQmastlc Return RêCa¡jk '02Mó'()2-M·1540 "- .-" ".. Sent By: AURORA#POWER; . 7139771347; Sep-12-05 16:47; . Page 1/2 ',,--,.0' .....,. ,/ I' , ...'.' ....................".,.'...,.,',. ." :,'U",·":....m'·"'..,'.;::..,',:,"fì:i',,·'.""¡'" "'::í·::"·,,:;:'" .,."·::":>:·5':.."'·..",..·... ....I.,'..L· . C . '.:" :,:.:" ',':, I!:,:.::.'....? ,",", ,...'.' '",''' :::. ,":: ",' ":" .:..' " " """. .". .:'> .. .',., . ,< I ",', . ' 10333 Richmond, Suite 710 Hou~on,Texas77042 Phone: 713-977-5799 Fax: 713-977-1347 Fax Transmittal Form To: From: ..-- ...........,.,_.---',..... Pax: Date: .....,.----....----- Phone: Pages: Re: cc: o Urgent o For Review 0 Please Comment 0 Please Reply 0 Plea.. Recycle lev r ) ;,rcJtty (Jhit 1M ~ ;ZJ~ f~ ~ ftJ j2JrJ. Iø~ jd ?-¡;t'A ~. 1~0 ~ r¡ ~b æ AM ~ /k~ /' ~ ~ r' ~ CAf¡ví--- ........ ~ :to _ erN ¡.~~~ ~ NOTE: The ¡nforma on contained In this fax is confidential and/or privileged. This fax is intended for the sole use on the individ- ual named above. If the reader of this transmittal page is not the intended recipient or a representative of the intended recipient, yOU are hereby notified that any review, dissemination, dlstributlonl or copying of this fax or the infol1T1ation contained herein is prohibited, If you have received this fax in error, please Immediately notify the sender by telephone and return this fêI;< to the sender at the address above, Ii'. ~^rìVC r-;~ ~- ß-~ (?~/tMIt~CW<ð- (~~Jø.;'4 ~ h /ï/L,~~~~ , ~/'¡or /l.JJ ,.. ¡. ;' ... ( :" \~ . Sent By: AURORA#POWER; ENDER; COMPLET£ THIS SECilON ... · Complete It8t'T1$ 1. 2. and 3. Also COmplete item 4 If Restricted ()(llvery is desJred. · Pr1nt your name al'1d addffiSS on the reverse so that we can return the card to you. · Attach this' ,. to the back of the m3llplece, or on the if spaðe permits. 1. Article Add ed 10: Tyonek ~ativc COrp. Attn: Te¡ Kroto 16~9 C ~reet, Ste 219 Anchorage, AK 99501 :, ArtIcle Nùmber (Transfer frQm $ervlCé label) '$ Form 3811. February 2004 . 7139771347; sePe05 16:47; Page 2/2 A , ¡1 Agent I:J Addreae~ C. DirøDí ~;e~ DYB$ DNo x 3. ServIce 1YP8 Ifl C~rtifiad Mall , b A~Î~t~ o Insul'j( MIIII I:J ~I'ðSS Mall o RelUrn R8Cèi¢ for Merchandi:!;è 00.0,0. 4. Fie¡¡tl1cted Délivery? (Extra FIKI) 0 Yes 7001 0320 DODD 6858 3_~,.ßç .------ 102690-02·M·1~Q .-----.'. .- ,..--."...."... Dome!ltlc Return Receipt .. .-'.-'" ... ...--..--....... . Sent By: AURORA#POWER; . 7139771347; seP.5 12:44; Page 1/1 fecEx,; Expt"E!$ F edE:.x Express Customer Support Trace 3876 Airway" 60ulevard MOdule H, 4th Floor Memphis, TN 38116 U,S. Mail: PO Box 727 Memphis. TN 38194-'W43 Telephone: 901-369-3600 -1trs.~ 09/08/2005 Dear Customer: The following is the proof of delivery you requested with the tracking number 792374497619. Delivery InformatIon: status: Slgnød for by: Service type: Delivered L.LAASCH Standard Envelope Delivery location: Delivery date: Shipping Information: Tracking number: 792374497519 Ship date: Weight: Shipper: Alissa Vadbol$kaia Aurora Power 10333 RICHMOND AVE SUITE 710 HOUSTON, TX 77042 US Recipient: Steve Davies Alaska Oil & Gas ConselVation Commi 333 West Seventh Avenue Suite 100 Anchorage, AK 99501 US Reference Aurora Gas/Randy Thank you for choosing FedEx Express. FedEx Worldwide Customer Service 1.800, GOredEx 1.800.463.3339 , #" ",,,,,,, ~'~(~ .{''"\ t} .t'!"" ,; ~ [", 1 \1 t"'§ ~",:~:.~ ~'.I!!J [~, '~'-~! .'~. r; ..,:.011 & C...- (;(~, (')];,í~"Ì'~f¡II({' ~,:¥:~~;~,~