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Home My WebLink AboutCO 587 tit 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. e D 5~ 7 Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed "11111111111" 1111 RES CAN ~olor Items: o Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) o Maps: o Other Items Scannable by a Large Scanner o Diskettes, No. D Other, Norrype: o Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: o Logs of various kinds: NOTES: Date ~ 1101 D7 o Other:: BY: ~ /5/ mE /111111111111111111 mP 4-5 Project Proofing BY: ~ Date '6' ~o 7 /5/ Scanning Preparation BY: + = TOTAL PAGES (Count does not include cover sheet) /5/ Production Scanning 1111111111111111111 Stage 1 Page Count from Scanned File: 4--0 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~ES ~ Date:~/ /3}07 NO /,/ WI f NO /s/ 11/11111111111" III BY: Stage 1 BY: If NO in stage 1, page(s) discrepancies were found: YES Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned 11111111111111 "III BY: Maria Date: /5/ Comments about this file: Quality Checked 11111111111I111111I 10/6/2005 Orders File Cover Page.doc 1. June 28, 2007 2. July 3, 2007 3. July 5, 2007 4. August 1, 2007 5. August 6, 2007 6. August 7, 2007 . . Index Conservation Order Happy Valley 12 Chevron's request for a Spacing Exception Happy Valley 12 Notice of Hearing, affidavit of publication, address and e-mail notifications E-mail request for information from US Fish and Wildlife Service and response E-mail re: vacating hearing Chevron's revised application for spacing exception E-mail re: status of request Conservation Order . . Chevron Shannon W. Martin Land Representative MidContinent! Aaska Chevron ,North America Exploration and ,Production 909 West 9th Avenue P.O. Box 196247 Anchorage, AK 99519-6247 Tel 907 263 7872 Fax 907 263 7898 Emall smartin@chevron.com VIA EMAIL AND U.S. MAIL DELIVERY Email: art_saltmarsb@admin.state.ak.us August 7,2007 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 9950 I Request to withdraw Application for Spacinl! Exception for HV 12 and 13 Deep Creek Unit Happy Valley Participating Area Conservation Order 553, Rule #2 Dear Mr. Saltmarsh: Union Oil Company of California (Union Oil) submitted its Application for Spacing Exception to drill the referenced Happy Valley 12 and 13 wells in the Deep Creek Unit, Happy Valley Participating Area on June 28, 2007. On August 6, 2007, Union Oil submitted a revised Application notifying the AOGCC of changed locations for HV 12 and 13. It appears that these applications were erroneously filed as Conservation Order #553, Rule #2 provides as follows: Rule 2 Wen SpacÏo2 Spacing units shall be a minimum of 10 acres. The Happy Valley Beluga/Tyonek Gas Pool shall not be opened in any well closer than 1500' to the external boundary of the Deep Creek Unit. Rule #2 obviates the need to file a request for spacing exception under these circumstances. There- fore, Union Oil respectfully requests that the AOGCC withdraw its application. V ~1Tu1Y yours, (' . 1 /' ',./ /7 / / /. f.,/-;¿C-// ¿~'r¿:¿?C¿:Æ--<- VV <-/ [,/'Vì7f(j -Shánnon W. Martin Enclosures cc: Kim Cunningham, CIRI (via email only) Cammy Taylor, DNR Division of Oil and Gas (via email only) MidContinent/Alaska/Chevron North America Exploration and Production www.chevron.com . . Page 1 of2 Colombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Tuesday, August 07,20073:32 PM To: Foerster, Catherine P (DOA); Norman, John K (DOA); Seamount, Dan T (DOA) Cc: Colombie, Jody J (DOA); Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Subject: RE: Spacing Exception Application for Happy Valley #12 and #13 Wells Chevron has emailed a PDF version of a signed letter to withdraw their application for spacing exceptions. However, although the letter references Rule 2 - Well Spacing it actually quotes Rule 1 - Pool Definition. I have asked them to correct this error and resubmit the letter. When the corrected copy arrives I will make sure a copy gets in the appropriate file(s). Dave Roby Phone: 907-793-1232 email: dave. roby@alaska.gov From: Foerster, Catherine P (DOA) Sent: Tuesday, August 07, 2007 1:38 PM To: Roby, David S (DOA); Norman, John K (DOA); Seamount, Dan T (DOA) Cc: Colombie, Jody J (DOA); Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Subject: RE: Spacing Exception Application for Happy Valley #12 and #13 Wells Sounds good From: Roby, David S (DOA) Sent: Tuesday, August 07, 2007 1:21 PM To: Norman, John K (DOA); Foerster, Catherine P (DOA); Seamount, Dan T (DOA) Cc: Colombie, Jody J (DOA); Saltmarsh, Arthur C(DOA); Maunder, Thomas E (DOA) Subject: Spacing Exception Application for Happy Valley #12 and #13 Wells John, Cathy, and Dan: On August 6th we received an application for a spacing exception from Chevron for their proposed Happy Valley #12 & #13 wells within the Happy Valley Participating Area of the Deep Creek Unit. The application cited the Commission's regulations prohibiting gas wells within 1,500 feet of a property line, in this case a CIRllease and a State lease within the unit, or within 3,000 of each other if open in the same pool. While I was preparing a Public Notice for these request I discovered that on March 8, 2005, the Commission issued CO 553 establishing pool rules for the Happy Valley Beluga/Tyonek Gas Pool within the Deep Creek Unit. Prior to the creation of this pool the Commission did issue spacing exceptions for Happy Valley wells #2 through #11. The pool description in CO 553 seems to be the same as the participating area included in the most recent application. Rule 2 of this order specifies a minimum well spacing of 10 acres, which is much less than our regulations normally require, and a 1,500 foot offset from the unit boundary. A quick glance at the information included in the application suggested that the proposed wells should fully comply with these requirements. I called Mr. Shannon Martin with Chevron to discuss the issue. He said he will verify that the well spacing does comply with the existing pool rule and if so submit a letter stating such and requesting that his prior application be withdrawn. Therefore, I think we should hold off on any action, including scheduling and noticing a pUblic hearing, until we receive further word from Mr. Martin. Dave Roby Reservoir Engineer 8/812007 . . Page 2 of2 Alaska Oil and Gas Conservation Commission Phone: 907-793-1232 Fax: 907-276-7542 email: dave.roby@alaska.gov 8/8/2007 ,it6 . . Page 1 of 1 Colombie, Jody J (DOA) From: Foerster, Catherine P (DOA) Sent: Tuesday, August 07, 2007 1 :38 PM To: Roby, David S (DOA); Norman, John K (DOA); Seamount, Dan T (DOA) Cc: Colombie, Jody J (DOA); Saltmarsh, Arthur C (DOA); Maunder, Thomas E (DOA) Subject: RE: Spacing Exception Application for Happy Valley #12 and #13 Wells Sounds good From: Roby, David S (DDA) Sent: Tuesday, August 07, 2007 1:21 PM To: Norman, John K (DDA); Foerster, Catherine P (DDA); Seamount, Dan T (DDA) Cc: Colombie, Jody J (DDA); Saltmarsh, Arthur C (DDA); Maunder, Thomas E (DDA) Subject: Spacing Exception Application for Happy Valley #12 and #13 Wells John, Cathy, and Dan: On August 6th we received an application for a spacing exception from Chevron for their proposed Happy Valley #12 & #13 wells within the Happy Valley Participating Area of the Deep Creek Unit. The application cited the Commission's regulations prohibiting gas wells within 1,500 feet of a property line, in this case a CIRllease and a State lease within the unit, or within 3,000 of each other if open in the same pool. While I was preparing a Public Notice for these request I discovered that on March 8, 2005, the Commission issued CO 553 establishing pool rules for the Happy Valley Beluga/Tyonek Gas Pool within the Deep Creek Unit. Prior to the creation of this pool the Commission did issue spacing exceptions for Happy Valley wells #2 through #11. The pool description in CO 553 seems to be the same as the participating area included in the most recent application. Rule 2 of this order specifies a minimum well spacing of 10 acres, which is much less than our regulations normally require, and a 1,500 foot offset from the unit boundary. A quick glance at the information included in the application suggested that the proposed wells should fully comply with these requirements. I called Mr. Shannon Martin with Chevron to discuss the issue. He said he will verify that the well spacing does comply with the existing pool rule and if so submit a letter stating such and requesting that his prior application be withdrawn. Therefore, I think we should hold off on any action, including scheduling and noticing a public hearing, until we receive further word from Mr. Martin. Dave Roby Reservoir Engineer Alaska Oil and Gas Conservation Commission Phone: 907-793-1232 Fax: 907-276-7542 ' email:cjaYE:}.IQºy@ala§Ka.9QY 8/7/2007 ~ . . Chevron === Shannon W. Martin Land Representative MidContinent! Alaska Chevron North America Exploration and Production 909 West 9th Avenue P.O. Box 196247 Anchorage, AK 99519-6247 Tel 907 263 7872 Fax 907 263 7898 Email smartin@chevron.com VIA EMAIL AND HAND DELIVERY Email: art_saltmarsh@admin.state.ak.us August 6, 2007 RECEIVE !UJ(] 0 6 2007 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 OiJ & Gas Cons. COO¡w¡. Anchorage REVISED APPLICATION FOR SPACING EXCEPTION Deep Creek Unit Happy Valley Participating Area Happy Valley 12 well (revised well location) Happy Valley 13 well (revised well location) C-061590,C-061589 Dear Mr. Saltmarsh: Union Oil Company of California (Union Oil) submitted its Application for Spacing Excep- tion to drill the referenced Happy Valley 12 and 13 wells in the Deep Creek Unit, Happy Val- ley Participating Area on June 28, 2007. On July 18,2007, Union Oil notified the AOGCC of its plans to slightly deviate the surface locations for these two wells. Because the bottom-hole location for these two wells was not expected to change, the AOGCC advised Union Oil that a revised Application for Spacing Exception was not required. Contrary to our earlier expectations, both the surface and bottom-hole location for the HV 12 and HV 13 wells have changed, and therefore Union Oil is filing a Revised Application for Spacing Exception for both wells. The AOGCC recently vacated the hearing in connection with Union Oil's request for spacing exception for the HV 12 and 13 wells. Union Oil under- stands that filing this revised Application for Spacing Exception will trigger a new public no- tice period. The anticipated productive interval for the both HV wells is the Beluga and Tyonek F orma- tions of the Happy Valley PA. We are planning to file a permit to drill for the HV 12 well on or about August 17, 2007, and for the HV 13 well in mid-September. The anticipated spud date for the HV 12 well is September 7,2007, and for the HV 13 well is October 7,2007. Specific location and depth information is depicted below, and further illustrated in the at- tached plat. MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com . . Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission August 6, 2007 Page 2 Happy Valley 12 ("HV 12"): Surface Location: 2907 FNL 293 FEL Sec 21 T2S R13W S.M. Projected Bottom Hole Location: 3202 FNL 742 FWL Sec 22 T2S R13W S.M. Happy Valley 13 ("HV 13"): Surface Location: 2920 FNL 337 FEL Sec 21 T2S R13W S.M. Projected Bottom Hole: 4359 FNL 1897 FEL Sec 21 T2S R13W S.M. 20 AAC 25.055(a)(2) provides, "[f]or a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides ofthe line." 20 AAC 25.055 (a)(4) provides in pertinent part, "[a] well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." Although Union Oil owns 100% working interest in all of the oil and gas leases within the Deep Creek Unit (i.e., the "owner" is the same in all offsetting oil and gas leases within the Unit), the bottom-hole location and/or potential perforation points for the HV 12 well underlie CIRI lease C-061590, and are within 1,500 feet of ADL 384380. Therefore, because there will be different "landowners" within 1,500 feet of the open wellbore, a spacing exception is required pursuant to 20 AAC 25.055 (a)(2). Additionally, both the HV 12 and HV13 wells are to be drilled or completed within 3,000 feet of several other wells within the Happy Valley P A which are capable of producing from the same pool(s), i.e., the Beluga and Tyonek formations. Therefore, a spacing exception is re- quired for both wells under 20 AAC 25.055 (a)(4). As discussed, Union Oil owns 100% working interest in the Deep Creek Unit leases, and both the State and CIRI are parties to the Deep Creek Unit Agreement. Therefore, the correlative rights of the affected landowners, owners and operators are adequately protected. At the date ofthis mailing, in accordance with 20 AAC 25.055 (d)(l), notice of this applica- tion has been sent by certified mail to all owners, landowners, and operators of all outlying properties within 3,000 feet of both the HV 12 and HV 13 wells. Certified mailing receipts are attached to this application. MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com · e Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission August 6, 2007 Page 3 Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each lease. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is ac- quainted with the facts and verifying that all facts are true. It is requested that the Commission approve this Revised Application for Spacing Exception to allow for the drilling of the proposed HV 12 and HV 13 wells. If you should require addi- tional information regarding this spacing exception application, please contact Ms. Chantal Walsh, drilling engineer at 263-7627, or the undersigned at 907-263-7872. Very truly yours, 7~~ ~on 'W.~artin 'Dv, ,I / /! :1 r[Þ-{~ Enclosures cc: Kim Cunningham, CIRI (via certified mail) Cammy Taylor, DNR Division of Oil and Gas (via certified mail) MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com . . Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission August 6, 2007 Page 4 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA C-061590, ADL 384380 Deep Creek Unit Happy Valley Participating Area HV 12 and HV 13 wells I, SHANNON W. MARTIN, Land Representative, Union Oil Company of Cali fomi a, do hereby verify the following: I am acquainted with the application submitted for the drilling of the HV 12 and HV 13 wells in the Deep Creek Unit, Happy Valley Participating Area. I have reviewed the Revised Application for Spacing Exception pursuant to 20 AAC 25.055 (a)(2) and (4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 6th day of August, 2007. ( k..<~;;~:fV'-\~~'-J'-.., ./. i// I ,,~~":,,'_ C'V />i¿0~:Ø(:) , i> Y ) I., . Sliåhnon W. Martin Land Representative STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 6th day of August, 2007. STATE OF ALASKA NOTARY PUBLIC ~ Judith A. Stanek V My CorrmIssJon E1cpires Febrursy 14. 2010 ~ ¡d~ ~y PUBLIC IN AND FOR THE STATE OF ALASKA My Commission expires: ~ - I '-1- 10 MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com . . Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission August 6, 2007 Page 5 EXHIBIT "A-I" LEASE LANDOWNERS OWNER OPERATOR Cook Inlet Region Inc. 2525 C Street, Suite 500 Anchorage, AK 99509 Union Oil Company of Union Oil Company C-061590 Att: Kim Cunningham California of California State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Ave., Suite 1100 ADL Anchorage, AK 99501-3560 Union Oil Company of Union Oil Company 384380 Att: Cammy Taylor California of California MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com Happy Valley Deep Creek Unit 1500 ft radius- Distance to property lines Deep Creek Unit Happy Valley 12 and 13 Well Locations N state PJaneAlaska 4 Projection J... NorthAmerican Datum 1927 June 27, 2007 . SENDER: COMPLETE THIS SECTION . · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. A. Signature COMPLETE THIS SECTION ON DELIVERY x B. Received by ( Printed Name) o Agent o Addressee C. Date of Delivery I 1. Article Addressed to: D. Is delivery address different from item 1? 0 Yes If YES, enter delivery address below: 0 No C. ði wtrvt-7 ~ 7 '0 r ~Iu.. {:)Ai tl- D I V í ç, o.v of ç f l-- t.. C:r14) '7)V W ~ 7fu Æ-ve.. I 5 f1qð1'tJ ~".~ /0 r~1tJJO/~3'JldJ . I 4. Restricted Delivery? (Extra Fee) 2. Article Number p Cf¡ ~ l-? 'L fcft7 (Transfer from service labeQ 3. Service Type ..Q..certified Mail o Registered o Insured Mail o Express Mail , o Return Receipt for Merchandise i o C.O.D. DYes PS Form 3811, August 2001 Domestic Return Receipt 102595..Q1-M-2509 . .¡ CJ cO 0- () ~ ~ ID . 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ZI.r\ OJ 0 ., a:oð gJf Cl. 1ñQ)~=o ~ = ., " -¡¡; Ü EE~'" ..J '" 0> ~ ¡: E o U ° _\j - ~ ¡g 'ü ..5 a... Cc_ Q) _ .-e ., en 2~ 22 1ïi a. ({) ()õ 0 ã5 ~ iIJ en g 0 0 ., Q. <!J Æ3:æ~ ::>Cl:zoen en 0.. CL Ü en a: a.. S66~ IPd'lf '009£ WJ0::l Sd SENDER: COMPLETE THIS SECTION . Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. . Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: COMPLETE THIS SECTION ON DELIVERY A. Signature I D Agent I D Addressee i C. Date of Delivery i x B. Received by (Printed Name) D. Is delivery address different from item 1? DYes If YES. enter delivery address below: D No t<--. f ~ etA..,.., ~ i ~ Cw-,.V\... c... f f\-I ¿. "Î2-) c ~ ~~f (" Ste:.-. S"è1'O A-¡.~.ÞI.R·lYere r4tL- qqc;v1 3. Service Type ~ Certified Mail D Registered D Insured Mail D Express Mail o Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number D Lf? (Transfer from servic~ labelj PS Form 3811, August 2001 ;?-t¡ ~ C1?7 Domestic Return Receipt 102595-01-M-2509 -#4 . . Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, August 01, 20072:31 PM To: Saltmarsh, Arthur C (DOA) Subject: Happy Valley 12 and 13 Art, 1. We vacated Happy Valley 12 and 13 hearing for August 7th 2. Operator was notified 3. We would like you to call Chevron and ask them how many more spacing exceptions are anticipated in this unit and inquire with them if they will be filing pool rules. Thanks Jody Jody J. Colombie Special Assistant to the Commission I State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Tel: (907) 793-1221 Fax:(907)276-7542 8/7/2007 #3 . . Page 1 of 1 Colombie, Jody J (DOA) From: Saltmarsh, Arthur C (DOA) Sent: Thursday, July 05, 20079:26 AM To: Colombie, Jody J (DOA) Subject: FW: Happy Valley 12 & 13 wells by Chevron. From: Saltmarsh, Arthur C (DOA) Sent: ThursdaYl July 051 2007 9:22 AM To: Iynnda_kahn@fws.gov Subject: FW: Happy Valley 12 & 13 wells by Chevron. Sorry about that. I spelled your name wrong. From: Saltmarsh, Arthur C (DOA) Sent: ThursdaYl July 05120079:19 AM To: 'Iymmda_kahn@fws.gov' Cc: Jody Colombie Subject: Happy Valley 12 & 13 wells by Chevron. Morning Lynnda, Please contact the operator, Chevron - Shannon Martin (263-7872) for a map of the location for these wells. They can provide what you require. If you should need anything else, please feel free to give me a call. Regards, Art Saltmarsh Sr. Petroleum Geologist AOGCC 793-1230 7/5/2007 . . page 1 01 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, July 05, 20079:11 AM To: Saltmarsh, Arthur C (DOA) Subject: FW: Happy Valley #12 and #13 Public Notices please respond to her, if you can, or direct her to the operator. From: Lynnda_Kahn@fws.gov [mailto:Lynnda_Kahn@fws.gov] Sent: Thursday, July 05, 2007 8:55 AM To: Colombie, Jody J (DOA) Subject: Re: Happy Valley #12 and #13 Public Notices Jody - Do you by chance have a site map that you could send me for these locations? I'm trying to determine if we would have any resources of concern in these areas, e.g. eagle nests or migratory bird nests (if work is to be performed onshore), wetlands, etc. Thanks, Lynnda Kahn Fish and Wildlife Biologist U.S. Fish and Wildlife Service Kenai Fish and Wildlife Field Office P.O. Box 1670 Kenai, AK 99611 (907) 260-0131 "Colombie, Jody J (COAl" <jody.colombie@alaska.gov> To undisclosed-recipients:: cc Subject Happy Valley #12 and #13 Public Notices 07/02/2007 11 :37 AM [attachment "Happy Valley 12.pdf' deleted by Lynnda Kahn/R7/FWS/DOI] [attachment "Happy Valley 13.pdf' deleted by Lynnda Kahn/R7/FWS/DOI] 7/5/2007 =tt2 STATE OF ALASKA ADVERTISING ORDER F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M 907-793-1238 ~ Anchorage Daily News PO Box 149001 Anchorage, AK 99514 Type of Advertisement 2 ARD FIN AMOUNT 2 REQUISITIONED BY: 02-902 (Rev. 3/94) . . NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814002 AGENCY CONTACT DATE OF A.O. Jod Colombie PHONE Jul 2 2007 peN July 3, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTlRETV ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Legal~ DOther (Specify) o Display Classified SEE ATTACHED Happy Valley #13 AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 NUMBER AMOUNT DATE 02910 SY ACCT FY NMR CC PGM LC DI8T LlQ 07 73451 02140100 DIVISION APPROVAL: Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM . . Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re: The application of Union Oil Company of California (Union Oil), a wholly-owned indirect subsidiary of Chevron Corporation, for a spacing exception to allow the drilling, completion, and regular production of the Happy Valley 12 gas well within 1,500 feet of a property line within the Deep Creek Unit, Happy Valley Participating Area. Union Oil, by a letter dated June 28, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 28, 2007 has requested an order allowing an exception to the spacing requirements of20 AAC 25.055 (a)(2) to allow drilling, completion, and regular production of the Happy Valley ("HV") 12 gas well within 1 ,500 feet of a property line, and 20 AAC 25.055(a)(4) to allow drilling, completion, and regular production of the HV 12 gas well within 3,000' of a well capable of producing from the same pool, Deep Creek Unit, Happy Valley Participating Area ("P A"). The surface location of the proposed well is 2859 feet from the north line (FNL) and 206 feet from the east line (FEL) of Section 21, T2S, R13W, Seward Meridan ("S.M."). The proposed bottom hole location is 3204' FNL and 752' FWL, Section 22, T2S, R13W, S.M. The Commission has tentatively scheduled a public hearing on this application for August 7, 2007 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ih 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 July 19, 2007. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after July 31, 2007. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on August 6, 2007 except that if the Commission decides to hold a hearing, written protest or comments must be received no later than the conclusion of the August 7,2007 hearing. If you are a person with a disability who may need special modifications in order to comment or attend the public hearing, please con ct the Commission's Special Assistant Jody Colombie at 793-1221 before July 3 , .007 . Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage. AK 99508 PRICE OTHER AD# DATE PO ACCOUNT PER DAY CHARGES 270421 07/ffi/2007 02814001 STOF0330 $225.76 $225.76 $0.00 STATE OF ALASKA THIRD JUDICIAL DISTRICT Christine Clark, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. 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 Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the armexed 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. Si Not; Public in and for the State of Alaska. Third Division. Anchorage, Alaska \ ({((((ffl" \\ ~"LY A. ~I'I"I" .. ..:.~:.. '.~~ :·~O:"~Rj;~.L% . . - - . ~.~.r_ . - ::: ~ . ·~u .IV :~ ::: :..z: '.~ -_../:. " - . ,." '. ~ ~~"~C1F~ ...~" ~ . . . . . . ":.Ñ :\' ............ --.~" 'JJ) JIm H" OTHER CHARGES #2 $0.00 . F1E· """E-'VED .. \ ø~\.J i JUL 0 6 2007 OTHER CHARGES #3 í'... Gas Cons. Cammission ,\nchorage OTHER OTHER GRAND CHARGES~ CHARGES~ TOTAL $0.00 $0.00 $0.00 $225.76 . UVH!.µ ~ V.;.,...U....I.I..;¡X ~I[·, ~~t·Lrr '"" Iso5UlOJf. !W.~S6 L .8J!d XIJd pueJ!) sso.øv .uVfI9U ffo ~L .NVSHRSRS 9P.l!:J.fmtv!mHoffi -- --- --~,- ·_''-:'I:''lt>-:--};,__~un''__I'\::u.J__hn Re: The application of union Oil C0!'lpany of ~alifpr' nia (Union Oil), a whOlly-owned Ifldlrect sUl:Jsldlary of Chevron corporation, for a spacing exception to .al- low the drilling. completion, and r~gµlar production of the Happy ValleY 12 gas well wltfiin 1,~0 feet of a property Ime within the Deep Creek unit, Happy valley participating Area. Union Oil,bY a letter dated June 28, 2007 and re- . ceived by the Alaska Qil and Gas cc¡nservatlon cam- mission ("Cammissian").on June 28, 2007 has re- quested an order allowing an exception to the sp~çmg requirements of 20 AAC 25.055 (!I)(2) to allow dnlhnN' comnletion and regular production .of the Happy va - ley «I-tV") 1'2 gas well within 1,500 feet. of a property line and 20 AAC 25.055(a)(4) to allow dnlhng, comPIEj¡ tion and re~ularproductian of the HV 12 gas we within 3 000 . of a well capable of producing frQ01 the same PdOl, Deep Creek ,unit, Hap~y valley partlclpat- ingAr~a ("PA"). The·surface loc~tlon .of the proP0IeetSed Well is 2859 feet from the north. hne (FNL) and 206 from the east line (FEL) Of section 21, T2S, R1~,,~!" ward Meridan ("S.M."). The proposed battOm h"", OV' cation is 3204' FNL and 752' FWL, Section 22, T2S, R13W, S.M· The commission has tentatively scheduled apu~lIc hearing an this apglicatian for August 7, .2007 at 9.00 am at the Alaska iI and Gas conservatIOn commis- sian at 333 west 7th Avenue, suite 100,Anchorage, Alaska 99501. A person may request. that th!! tenta- tively scheduled hearing be he.id þy flhng a wntten re- quest with the commission na later than 4:30 pm an July 19, 2007. If a request for a hearing is nat timely filed, the .COm- misSian will cansider the issuance. of .an or~er \N1thout a hearing. TO learn if the commiSSion wllll10ld the public hearing, please call 793-1221 after July 31, 2007. In addition, a person may submit written comments regarding this apphc!ltl(jn to the Alaska Oil and Gas canservation CommlSSlan at 333 west 7~h Avenue, Suite 100 Anchorage, Alaska 99501. wntten cam- ments must be received no later thaI] 4~30 pm on Au- gust 6 2007 .except that if the. com. mission d. eCldes ta hald a' hearing written protést .or comments ml¡$t be received nO láier than the cOnclusion of the August 7, 2007 hearing. " If yau are a ¡¡erson .with a disability who may need special modifications.lll order to comment or. a~.d the pUblic hearing,please çontact the commISSIon S I Special Assistant Jady Colombie at 793-1221 before , JUlY31,2007, /s/: John K. NOrman' chairmøn AO# 02814001 Publish: July 3, 2007 . . Page 1 of2 Colombie, Jody J (DOA) From: Ads, Legal [Iegalads@adn.com] Sent: Monday, July 02,2007 1 :56 PM To: Colombie, Jody J (DOA) Subject: RE: 2 Public Notices 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: 270421 Publication Date(s): July 3, 2007 Your Reference Number: 02814001 Total Cost of Legal Notice: $225.76 Legal Ad Number: 270421 Publication Date(s): July 3, 2007 Your Reference Number: 02814002 Total Cost of Legal Notice: $225.76 Thank You, Kim Kirby Legal Classified Representative E-mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 We have a new web site for our legal notices. Please check it out and let me know what you think. http://www .legalnotice.org/pl/adn/ 7/3/2007 . -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Monday, July 02, 2007 11:29 AM To: Ads, Legal Subject: 2 Public Notices Thank you 7/3/2007 . Page 2 of2 . . - - - -- -- - -- ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814002 ¡ F AOGCC 333 West 7th Avenue. Suite 100 A nchonuJ"e. A K 99.')01 907-793-1238 AGENCY CONTACT DATE OF A.O. R o M .Toc1v rl 1 PHONE (907) 791 -1221 1 . .Tulv 2 2007 peN DATES ADVERTISEMENT REQUIRED: T o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 July 3,2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 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. ATTACH 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 helshe 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 2007. and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2007. 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 2007, Notary public for state of My commission expires STATE OF ALASKA . NOTICE TO PUBLISHER e ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814004 F AOGCC AGENCY CONTACT· DATE OF A.O. R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M 907-793-1238 Jod Colombie PHONE Jul 2 2007 peN DATES ADVERTISEMENT REQUIRED: T Peninsula Clarion o P.O. Box 3009 Kenai, AK 99611 ASAP THE MATERIAL BETWEEN 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 Legal[gl D Display Classified DOther (Specify) SEE ATTACHED Happy Valley 13 REF TYPE 1 VEN 2 ARD 3 4 DATE 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST UQ 05 02140100 73451 2 3 4 REQUISITIONED BY: DIVISION APPROVAL: . . Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re: The application of Union Oil Company of California (Union Oil), a wholly- owned indirect subsidiary of Chevron Corporation, for a spacing exception to allow the drilling, completion, gas storage regular production of the Happy Valley 13 gas well within 3,000 feet of a well capable of producing from the same pool within the Deep Creek Unit, Happy Valley Participating Area. Union Oil, by a letter dated June 28, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 28, 2007 has requested an order allowing an exception to the spacing requirements of20 AAC 25.055(a)(4) to allow drilling, completion, and regular production of the Happy Valley ("HV") 13 gas well within 3,000 feet of a well capable of producing from the same pool within the Deep Creek Unit, Happy V alley Participating Area ("P A"). The surface location of the proposed well is 2927 feet from the north line (FNL) and 331 feet from the east line (FEL) of Section 21, T2S, R13W, Seward Meridan ("S.M."). The proposed bottom hole location is 4322' FNL and 1927' FEL, Section 21, T2S, R13W, S.M. The Commission has tentatively scheduled a public hearing on this application for August 7,2007 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ih 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 July 19,2007. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after July 31, 2007. 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 August 6, 2007 except that if the Commission decides to hold a hearing, written protest or comments must be received no later than the conclusion of the August 7, 2007 hearing. If you are a person with a disability who may need special modifications in order to comment or attend the public hearing, leas con ct the Commission's Special Assistant Jody Colombie at 793-12 r ul 3 ,2007. e . PUBLISHER'S AFFIDAVIT }ss: UNITED STATES OF AMERICA , STATE OF ALASKA Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Public Hearing AO-028 14003 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: July 5, 2007 x 12~.n..l'~L ~-P.eé.£./ SUBSCRIBED AND SWORN to me before ~_ 11th day of July 2007 ~i)({) Pll ~Q NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-08 .-~---------------~---. I· NotIce of Public Hearl", I ; .... __ of Alnka ... 1 IAluka 011 and Gas Conservation Comml..... ; 1 Re: The· application of Union Oil Company of t Cl\lifôrnia . (Union Oil), a wholly-ownedindlred I subsidiary of Chevron Corporation, for a spao-I Ing exception to allow the drilling,. completion, 1 and regular production of the Happy Valley 121 gas well w/ll1in 1,500 feet of a property line with- I in the Deep Creek Ünit, Happy. Valley; Participating Area. 1 Union' Oil, by a letter dated June 28, 2007 and 1 rec9ived by the Alaska Oil and· Gas ConsElMition 1 Commission (Commission) on June 28, 2007 has 1 requested an order allowing an exception to the &pac- 1 ing requirements of 20ÄAC 25.055 (a)(2) to allow; drHIing, completion, and regular production of the Happy Valley ("HV') 12 gas well within 1 ,500 feet of a ; property line, and 20 MC 25.055(a)(4) to allow 1 drilling, completion and regular production of the HV I 12 gas well within 3,000' of a well capable of produc- 1 ing from the same pool, Dep Creek unit Happy VaHey 1 Participating Area ("PA"). The surface location of the 1 ; propoeed well is 2859 feet from the north line (FNL) 1 and 206 feet from the east line (FEL) of Section 21, 1 ; T2S, R13W, Sewaro Meridan ("S.M."). The proposed ; 1 bottom hole location is 3204' FNL and 752' FWL, 1 I Section 22, T2S, R13W, S.M. 1 1 The Commission has tentatively scheduled a 1 1 public hearing on this application for August 7, 20071 1 at 9:00 am at the Alaska Oil and Gas Conservation 1 Commission at 333 West 7th Avenue, Suite 100, 1 Anchorage, Alaska 99501. A person may request that ; the tentatively scheduled hearing be held by filing a 1 written request with the Commission no later than 1 4:30 pm on July 19, 2007. 1 If a request for a hearing is not timely filed, the 1 Commission will consider the issuance of an order 1 without a hearing. To learn if the Commission will hold 1 the pUblic hearing, please call 793-1221 afterJuty 31, ; 2007. . . 1 In addition, a person may submit written com- 1 ments regaroing this application to the Alaska Oil and 1 Gas Conservation Commission at 333 West 7th 1 Avenue, Suite 100, Anchorage, Alaska 99501. Written 1 comments must be received no later than 4:30 pm on 1 August 6, 2007 except that if the Commission deCides ; 1 to hold a hearing, written protest or commente must 1 1 be received no later than the conclusiOl1 of the August 1 17,.2007 hearing, . 1 1 If you are a person with a disability who may 1 1 need special modifications in oroer to comment or 1 1 attend the public hearing, please contact the 1 ; Commission's Special Assistant Jody Colombie at 1 1 ~93-t221 before Juty 31,2007. ; 1 PUBUSH: 715, 2Ð07 .....-74 1 ._-----------------~~_. . . Page 1 of 1 Colombie, Jody J (DOA) From: Reece, Denise [denise.reece@peninsulaclarion.com] Sent: Monday, July 02, 20072:57 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notices Happy Valley #12 and #13 Thanks Jody. Will run on July 5. Denise Reece Peninsula Clarion Legal Ad Desk 907-335-1233 907-283-3299 Fax denise.reece@peninsulaclarion.com From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Monday, July 02,2007 11:41 AM To: Reece, Denise Subject: Public Notices Happy Valley #12 and #13 7/3/2007 02-902 (Rev. 3/94) PUbliSheiginal Copies: Department Fiscal, Departn.ReceiVing AO.FRM STATE OF ALASKA ADVERTISING ORDER SEE BOTTÔlí¡fFO NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814004 F AOGCC 333 West 7th Avenue. Suite 100 Ancncm'we. AK 99.')01 907-793-1238 AGENCY CONTACT DATE OF A.O. R o M Jodv ('( 1 PHONE (907) 791, -1221 DATES ADVERTISEMENT REQUIRED: ~ 1 ~ . Tll1v ') ')007 PCN T o Peninsula Clarion PO Box 3009 ASAP Kenai, AK 99611 THE MATERIAL BETWEEN 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. ATTACH 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 helshe 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 2007, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2007, 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 2007, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM . . Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, July 02,2007 11 :29 AM To: Legal Ads Anchorage Daily News Subject: 2 Public Notices Attachments: Ad Order ADN form Happy Valley 13.doc; Ad Order ADN form Happy Valley 12.doc; HV-12 Public Notice.doc; HV-13 Public Notice.doc Thank you 7/2/2007 . . Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, July 02, 2007 11 :41 AM To: 'denise.reece@peninsulaclarion.com' Subject: Public Notices Happy Valley #12 and #13 Attachments: Happy Valley 12.pdf; Happy Valley 13.pdf; AO Order Clarion Happy Valley #13.doc; AO Order Clarion Happy Valley #12.doc 7/212007 . Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, July 02,2007 11 :38 AM Subject: Happy Valley #12 and #13 Public Notices Attachments: Happy Valley 12.pdf; Happy Valley 13.pdf 7/2/2007 . Page 1 of 1 ~ to lto~ e\ rW ~ a~ fJ1: V Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Baker Oil Tools 4730 Business Park Blvd., #44 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 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 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 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 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 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 North Slope Borough PO Box 69 Barrow, AK 99723 (}\~ú1 ~ 4;1 . . Chevron === Shannon W. Martin Land Representative MidContinent! Alaska Chevron North America Exploration and Production 909 West 9th Avenue P.O. Box 196247 Anchorage, AK 99519-6247 Tel 907 263 7872 Fax 907 263 7898 Email smartin@chevron.com VIA EMAIL AND HAND DELIVERY Email: art_saltmarsh@admin.state.ak.us June 28, 2007 RECEIVED JUN 2 9 2007 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 ,Alaska Oil & Gas Cons. Commission Anch(Jrag~~ APPLICATION FOR SPACING EXCEPTION Deep Creek Unit Happy Valley Participating Area Happy Valley 12 and 13 wells C-061590,C-061589 Dear Mr. Saltmarsh: Union Oil Company of California (Union Oil) hereby submits this Application for Spacing Exception to drill the referenced Happy Valley 12 and 13 wells in the Deep Creek Unit, Happy Valley Participating Area. Our anticipated spud date for both wells is August 15, 2007. It is anticipated that a Permit to Drill and associated filing fees will be filed on or be- fore August 1, 2007. The anticipated productive interval for the Happy Valley 12 and Happy Valley 13 wells is the Beluga and Tyonek Formations of the Happy Valley PA. Specific location and depth infor- mation is depicted in the attached plat, and is further indicated below: Happy Valley 12 ("HV 12"): Surface Location: 2859 FNL 206 FEL Sec 21 T2S R13W S.M. Projected Bottom Hole Location: 3204 FNL 752 FWL Sec 22, T2S, R13W, S.M. MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission June 28, 2007 Page 2 . . Happy Valley 13 ("HV 13"): Surface Location: 2927 FNL 331 FEL Sec 21, T2S, R13W, S.M. Projected Bottom Hole: 4322 FNL 1927 FEL Sec 21 T2S R13W S.M. 20 AAC 25.055(a)(2) provides, "[f]or a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides ofthe line." 20 AAC 25.055 (a)(4) provides in pertinent part, "[a] well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." Although Union Oil owns 100% working interest in all of the oil and gas leases within the Deep Creek Unit (i.e., the "owner" is the same in all offsetting oil and gas leases within the Unit), the bottom-hole location and/or potential perforation points for the HV 12 well under- lay CIRI lease C-061590, and are within 1,500 feet of ADL 384380. Therefore, because there will be different "landowners" within 1,500 feet of the open wellbore, a spacing exception is required pursuant to 20 AAC 25.055 (a)(2). Additionally, both the HV 12 and HV13 wells are to be drilled or completed within 3,000 feet of several other wells within the Happy Valley P A which are capable of producing from the same pool(s), i.e., the Beluga and Tyonek formations. Therefore, a spacing exception is re- quired for both wells under 20 AAC 25.055 (a)(4). As discussed, Union Oil owns 100% working interest in the Deep Creek Unit leases, and both the State and CIRI are parties to the Deep Creek Unit Agreement. Therefore, the correlative rights of the affected landowners, owners and operators are adequately protected. At the date ofthis mailing, in accordance with 20 AAC 25.055 (d)(1), notice ofthis applica- tion has been sent by certified mail to all owners, landowners, and operators of all outlying properties within 3,000 feet of both the HV 12 and HV 13 wells. Certified mailing receipts are attached to this application. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each lease. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is ac- quainted with the facts and verifying that all facts are true. MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission June 28, 2007 Page 3 . e It is requested that the Commission approve this exception application to the statewide spac- ing regulation for the drilling of the proposed HV 12 and HV 13 wells. If you require additional information regarding this spacing exception application, please con- tact Ms. Chantal Walsh, drilling engineer at 263-7627, or the undersigned at 907-263-7872. Very truly yours, tZ~H//µ Shannon W. Martin Enclosures cc: Kim Cunningham, CIRI (via certified mail) Cammy Taylor, DNR Division of Oil and Gas (via certified mail) MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission June 28, 2007 Page 4 . e VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA C-061590, ADL 384380 Deep Creek Unit Happy Valley Participating Area HV 12 and HV 13 wells I, SHANNON W. MARTIN, Land Representative, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the HV 12 and HV 13 wells in the Deep Creek Unit, Happy Valley Participating Area. I have reviewed the application for spacing exception pursuant to 20 AAC 25.055 (a)(2) and (4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 28th day of June, 2007. ~/ /'. 1/---". ¡(:~-~ A/.~ on W. Martin Land Representative f' STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 28th day of June, 2007. ~\\\\llIllIlIiIb4'1 ~ ~ þ>.. T~& ~ ~.~~~····"·"·····~~~K~ ~Iq.. "~ ~ . J Q. §u.· '. ~ ;:s.....: y.~ ~ ~ : {N01'AR } ~ _ ;NOTARY PUBLIC IN AND FOR ~~···..rUBLl~..~*I THE STATE OF ALASKA 'i~t;J¡¡.¡;....···~('t-~§ My Commission expires: #óiJ. I ~" M9 ~ ¡; Of '" ~'~ WIII/IllIII\ \\\\\\~ MidContinent/ Alaska/Chevron North America Exploration and Production www.chevron.com Deep Creek Unit Happy Valley 12 and 13 Well Locations ><H1Í3 A state Plane Alaska 4 Projection NorthAmerican Datum 1927 June 27. 2007 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission June 28, 2007 Page 5 . . EXHIBIT "A-I" LEASE LANDOWNERS OWNER OPERATOR Cook Inlet Region Inc. 2525 C Street, Suite 500 Anchorage, AK 99509 Union Oil Company of Union Oil Company C-061590 Att: Kim Cunningham California of California State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Ave., Suite 1100 ADL Anchorage, AK 99501-3560 Union Oil Company of Union Oil Company 384380 Att: Cammy Taylor California of California MidContinent/Alaska/Chevron North America Exploration and Production www.chevron.com SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY A. Signature I o Agent I o Addressee I B. Received by ( Printed Name) I C. Date of Delivery : D. is delivery address different from Item 1? 0 Yes : If YES, enter delivery address below: 0 No ' · Complete Items 1. 2, and 3. Also complete Item 4 if Restricted Delivery Is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailplece, or on the front If space permits. 1. Article Addressed to: x . {;¡; P' J.:- -f;:;.. (ce <f ~£ W\ , ;:Þ-tc:..... òl5 ð- )' 't. r' S<t.. / Sl.ol.i~tr ~ ~rø;~ r~·1q!V'7 ø.. /1,-, ~ ~MYI"' 'j he,....-'\. 3. Service Type I ..å.Certified Mail 0 Express Mai I o Registered 0 Retum Receipt for Merchandise I o Insured Mail 0 C.O.D. I 4. Restricted Delivery? (Extra Fèe) 0 Yes I 2. Article Number 7 d" ? r",..,... """'-- /Y1Y I t 7sr (fransfer from service labeQ (;) ? .,. .J v v.... UV vvO PS Form 3811 , February 2004 Domestic Return Receipt I. >. I 102595-02-M-1540 I U.S. Postal ServiceTM CERTIFIED MAILTM RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) Ll1 Ll1 Ll1 Ll1 Ll1 Ll1 ['- ['- ['- ..=I ..=I ..=I ,..:¡ ..=I ,..:¡ . cO cO cO t:I t:I t:I .'0) t:I t:I t:I t:I t:I t:I t:I t:I t:I t:I t:I t:I t:I t:I t:J t:J t:J t:J Ll1 Ll1 Ll1 ::r ::r ::r T T T ..D ..D ..D t:I t:J t:I t:I t:I t:I ['- ['- I"- . '. USE Postage $ Certified Fee Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Postmark Here Total Postage & Fees $ :" . ~. . - - - . SENDER: COMPLETE THIS SECT/ON · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: . t7{-tl.-fe- of ~ ~ko- /' þ-v(2- .D {.; 1 5 r tp" 15- 0', I ",,..,J.. ()~ SSö w ,"1~ ~, ç~ "CJC ~~p.k- qrro\ A1t. Ú{M"^1 ~y[pr{' . . . . , A. Signature I o Agent I o Addressee Ie. Date of Delivery I . I D. Is delivery address different from Item 1? "D Yes I If YES. enter delivery address below: 0 No I I I I I x B. Received by ( Printed Name) 3. Service Type .It.. Certified Mall 0 Express Mall ,. : o Registered 0 Retum Receipt for Merchandise I o Insured Mall 0 C.O.D.· 4. Restricted Delivery? (Extra Fee) 0 Yes " 2. Article Number (Transfer from servIce labeO PS Form 3811. February 2004 7C/"t/b 1 Lf W ()(JCJr) ClOf I f7l.f? Domestic Retum Receipt I r I 102595-02-M-1540 I co CO CO ::r ::r ::r l"- I"- I"- ,...: ,...: ,...: . c... ,...: ,...: ,...: CO CO c:O I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J I:J L1l L1l L1l ::r ::r ::r ", ", ", ...D ...D ...D I:J I:J I:J I:J I:J I:J l"- I"- I"- , --_.'-'-~---'-------- -~-~-.-~._~~-~--'-"._-- U.S. Postal ServiceTM CERTIFIED MAILM RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) Postage $ Certified Fee Return Receipt Fee (Endorsement Required) Restricted Delivery Fee (Endorsement Required) Postma'" Here Total Postage & Fees $ 11.01\.. /I--. "ii~:~~~i!itf=Ii~~ CIty. State, ZIP+4 e ~ q JP I