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Home My WebLink AboutCO 532 B• 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. ~© ~~ Order File Identifier Organizing (done) RE CAN Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: BY: Maria Project Proofing BY: M/ aria l Date: D /s1 Scanning Preparation x 30 = BY: r'e Maria ~ Date: Production Scanning + =TOTAL PAGES~~ (Count does not include cover sheet) /s/ Stage 1 Page Count from Scanned File: ~ ~~ (Count does include co er sheet) Page Count Matches Number in Scan ing Preparation: V YES NO BY: Maria Date: ~ Q V /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: !s/ Scanning is complete at this point unless rescanning is required. III II IIII VI II I I III ReScanned III Ililll VIII II III BY: Maria Date: /s/ Comments about this file: Quality Checked III II'III III IIiI 111 ~/o-seed Illllllllllllllllil DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: /s/ aa,~a~~re~ed uiiuuiuiiiuu OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: 10!6/2005 Orders File Cover Page.doc ~~ • INDEX CONSERVATION ORDER NO. 532B West Foreland #2 1) December 7, 2007 Forest Oil's Application for Permanent Spacing Exception for the West Foreland #2 Well 2) December 11, 2007 E-mail from Operator 3) December 11, 2007 E-mail from Dan Donkel re: oil and gas interests 4) December 12, 2007 Notice of Hearing, Affidavit of publication, a-mail Distribution list, bulk mailing 5) January 15, 2008 E-mail re: hearing 6) January 17, 2008 Transcript 7) November 21, 2008 e-mails and correspondence re: disbursement of escrow funds Conservation Order No. 532B • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: APPLICATION OF FOREST OIL ) CORPORATION for an order granting a ) permanent exception to the spacing requirements ) of 20 AAC 25.055 to allow for the continued ) operation of the West Foreland No. 2 ) development gas well. ) Conservation Order No. 532B West Foreland No. 2 West Foreland Undefined Gas Pool January 30, 2008 IT APPEARING THAT: Forest Oil Corporation ("Forest"), by letter dated and received by the Alaska Oil and Gas Conservation Commission ("Commission") on December 7, 2007, requests a permanent exception to the well spacing provisions of 20 AAC 25.055 to allow for continued operation of the West Foreland No, 2 development gas well ("WF #2"), which is closer than 1500' to a property line and within the same governmental section as, and less than 3000' from, a well capable of producing from the same gas pool. 2. The Commission granted Forest a temporary spacing exception for WF #2 by Conservation Order ("CO") 532, which was issued on September 16, 2004. That order was valid for 30 months after the well was completed. It expired on June 12, 2007. The Commission granted an extension to the temporary spacing exception with CO 532A, which was issued on August 9, 2007. That order expires on February 1, 2008. 4. Pursuant to 20 AAC 25.540, notice of opportunity for a public hearing was published in the Anchorage Daily News on December 12, 2007. On December 12, 2007, the Commission received an email from a person who asked if granting Forest's permanent spacing exception application would affect his and others' interests. The Commission has received no other questions or comments on this application. 6. On December 18, 2007, the Commission received multiple Notice of Ownership forms (Form 10- 417), notifying the Commission that ownership of Forest's assets in Alaska had been transferred to Pacific Energy Alaska Operating LLC. On December 18, 2007, the Commission also received multiple Designation of Operator forms (Form 10-411), whereby Pacific Energy Alaska Operating LLC requests Commission approval to designate Pacific Energy Resources Ltd. as the operator of the assets acquired from Forest. Pacific Energy Alaska Operating LLC and Pacific Energy Resources Ltd. are collectively referred to as "Pacific Energy." The Commission is processing these requests. 7. "Applicant" refers to Forest and Pacific Energy, and "Operator" refers to Forest, Pacific Energy, and any potential future operator of onshore Federal Lease A-035017, offshore State of Alaska ("State") Lease ADL-359112, West Foreland #1 development gas well ("WF #1"), and WF #2. Conservation Order 532B • Page 2 January 30, 2008 8. The Commission held a public hearing at the Commission's office at 9:00 a.m. on January 17, 2008. Only the Applicant testified at the hearing. FINDINGS: 1. The record for this order includes the Commission's well and production records for WF #2, and the record for CO 450, CO 450-A, CO 450B, CO 532, and CO 532A. 2. WF #2 is a deviated, development gas well that was completed on December 11, 2004. The surface location of the well is onshore, 886' from the south line and 571' from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well lies offshore beneath the western side of Cook Inlet, 760' from the north line and 1,146' from the east line of Section 21, T08N, R14W, SM. Vertical well WF #1 also lies onshore within Section 21, T08N, R14W, SM. 3. The affected leases are onshore Federal Lease A-035017 and offshore State Lease ADL-359112. 4. The landowners of Federal Lease A-035017 are Cook Inlet Region, Inc. ("CIRI") and the U.S. Government. The Bureau of Land Management ("BLM") administers Federal Lease A-035017 on behalf of CIRI and the U.S. Government. The State of Alaska is the landowner of State Lease ADL-359112. The Department of Natural Resources ("DNR") administers State Lease ADL- 359112. In addition to the landowners, there are numerous overriding royalty interest owners ("ORRIOs"). 5. The Applicant is the sole working interest owner of both leases for the affected reservoir sands. Phillips Petroleum Company, or an affiliate, has a working interest in zones not less than 9,527 feet measured depth in WF # 1. (See Finding 4 of Conservation Order 450-A.) 6. WF #2 is perforated in two gas-bearing sands. The shallower sand, which extends from 8,489' to 8,530' measured depth, is herein termed the "8500-foot sand". The .deeper sand, which extends from 10,370' to 10,383' measured depth, is herein termed the "9200-foot sand". WF #2 has two strings of tubing to separate gas production from the 8500-foot and 9200-foot sands. WF #2 is producing gas from both sand intervals. 7. WF # 1 is perforated in two gas-bearing sands that occur between the measured depths from 9,332' and 9,349' (the "9200-foot sand") and from 9,502' to 9,529' (herein termed the "9400-foot sand"). WF # 1 has a single string of tubing, and in this well, production from the 9200-foot sand and the 9400-foot sand is commingled. 8. The 8500-foot sand is not productive in WF #1, and the 9400-foot sand is not productive in WF #2. 9. In WF #2, the top of the 8500-foot sand lies onshore within Federal Lease A-035017, about 85' west of the property boundary with State Lease ADL-359112. The top of the 9200-foot sand lies offshore within State Lease ADL-359112, approximately 250' east of the property boundary with Federal Lease A-035017. 10. WF #2 and WF #1 produce from the 9200-foot sand at take points that are within the same governmental section and less than 3,000' apart. 11. Due to the non-compliant spacing of WF #2, the Commission issued CO 532, which granted a temporary spacing exception authorizing drilling and initial gas production from WF #2 from any interval not stratigraphically deeper than the 9400-foot sand. 12. Production from the 9200-foot and 9400-foot sands is allocated and royalties are paid in accordance with the West Foreland #1 -West Foreland Field Compensatory Royalty Agreement ("CRA") that became effective April 1, 2001 and met the requirements of CO 450. 13. The CRA applies only to 9200-foot and 9400-foot sands. Conservation Order 532B • • January 30, 2008 Page 3 14. CO 532 required that the Applicant establish a separate escrow account for royalties on gas produced from any sands stratigraphically shallower than the 9200-foot sand. 15. On August 9, 2007, the Commission issued CO 532A to allow for continued operation of WF #2 until February 1, 2008. 16. CO 532A required the Applicant to submit its application and all supporting documentation for a permanent spacing exception for WF #2 no later than 4:30 p.m. on November 1, 2007 to ensure that there was enough time for the Commission to process the application. 17. In violation of CO 532A, the Applicant did not submit its application for a permanent exception to the Commission until December 7, 2007. 18. At the hearing held on January 17, 2008, Forest provided documentation of the personal notice of Forest's application for the permanent spacing exception and disbursement of escrow funds sent by Forest on December 13, 2007 with copies of certified receipts showing the notice was provided to all royalty owners and overriding royalty owners. 19. In compliance with CO 532, the Applicant has completed the "West Foreland #2 Well -West Foreland Field Royalty Sharing Agreement" ("Agreement") with the BLM and DNR. The BLM signed the Agreement on November 30, 2007; the Applicant signed the Agreement on December 2, 2007; and the DNR signed the Agreement on December 3, 2007. The Agreement's effective date is December 14, 2004. 20. Paragraph 1 of the Agreement specifies that production will be allocated as follows: 90% to Federal Lease A-035017 and 10% to State Lease ADL-359112 for gas and associated hydrocarbon liquids produced from sands shallower than the 9200-foot sand by WF #2 well or any other well with a bottom hole location on either of these two leases. 21. Paragraph 2 of the Agreement conditions the Agreement on the Commission's approval of the allocation specified in Paragraph 1 of the Agreement or the Commission's establishment of a different allocation. 22. Paragraph 4 of the Agreement requires "a lawful final order of an agency or court having jurisdiction to approve this Agreement or the Final Allocation" to release the escrowed funds. CONCLUSIONS: 1. A spacing exception is necessary to allow for the continued operation of WF #2. 2. The Agreement protects the correlative rights of the State of Alaska, the U.S. Government, CIRI, the Applicant, and the ORRIOs. 3. The production allocation proposed by the Agreement is fair and equitable. 4. The Commission has the authority under AS 31.05.030 to approve the Agreement and authorize the release of the escrowed funds. NOW, THEREFORE, IT IS ORDERED: The Commission grants the Applicant's application for a permanent spacing exception to allow for the continued gas production from WF #2 from any interval stratigraphically shallower than the 9,200-foot sand. Conservation Order 532B • Page 4 January 30, 2008 2. The Commission approves the production allocation prescribed in the "West Foreland #2 Well - West Foreland Field Royalty Sharing Agreement" signed by the landowners and the Applicant with an effective date of December 14, 2004. The Applicant shall release the funds escrowed in accordance with CO 532 and distribute them as required by the "West Foreland #2 Well -West Foreland Field Royalty Sharing Agreement." 4. Upon distribution of the escrowed funds, the Operator shall close the escrow account and distribute future royalties in accordance with the "West Foreland #2 Well -West Foreland Field Royalty Sharing Agreement." DONE at Anchorage, Alaska, and dated J Gas Conservation Commission Cat y P. oer er, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that, within 20 days after written notice of the entry of an order, a person affected by the order may file with the Commission an application for reconsideration. To be timely filed, the application must be received by 4:30 p.m. on the 23`d day following the date of the order, or the next working day if the 23`d day is a state holiday or weekend. The Commission shall grant or refuse the application in whole or in part within 10 days after it is filed. The Commission can refuse the application by not acting on it within the 10-day period. A person that submitted an application for reconsideration has 30 days from the date the Commission refused the application or mailed (or otherwise distributed) an order on reconsideration, both being the final order of the Commission, to appeal the decision to Superior Court. Where an application for reconsideration is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the application is deemed denied (i. e., 10`h day after the application for reconsideration was filed). Only a person that submitted an application may appeal to Superior Court, and any such appeal may only be on the grounds specified in the application. Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, January 31, 2008 9:08 AM Subject: C05326 (West Foreland #2), AIO 32 (Redoubt Unit),A1024B (Prudhoe Bay-Borealis), A1022D (Prudhoe Bay- Aurora) Attachments: aio32.pdf; co532b.pdf; aio22d.pdf; aio24b.pdf BCC:Cynthia B Mciver (bren.mciver@alaska.gov); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol Smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou- Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington ; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner';-'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Attachments: aio32.pdf;co532b.pdf;aio22d.pdf;aio24b.pdf; Jody Colombie Special Assistant Alaska Oil & Gas Conservation Commission Direct: 907-793-1221 Fax: 907-276-7542 *Note new email address 1/31/2008 ! ~ Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ~J~i /moo/ ~ /~ ~7 Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Friday, November 21, 2008 5:04 PM To: Colombie, Jody J (DOA) Subject: FW: West Foreland #2Upper Distribution Attachments: AA-087827 West Forland #2 Request for Escrow Disbursement Documentation001.pdf; West Foreland #2 BLM Approval Doc.pdf; pic08683.gif; pic08213.gif AA-087827 West West Foreland #2 pic08683.gif (3 KB) pic08213.gif (3 KB) Forland #2 Requ... BLM Approval ... Please print all correspondence and e- mails for the file. -----Original Message----- From: Melissa_Ainsworth@ak.blm.gov [mailto:Melissa_Ainsworth@ak.blm.gov] Sent: Friday, November 21, 2008 2:47 PM To: Jim Arlington; George.Hutchison@mms.gov; Greg_Noble@blm.gov; McDaniel, Allen; 'Long, Susan K' Cc: Birnbaum, Alan J (LAW); Elaine Knipe; Jim Arlington; Stouffer, James A (DNR); Colombie, Jody J (DOA); Norman, John K (DOA); Davidson, Temple (DNR); Bill_Diel@ak.blm.gov; Thomas_Zelenka@blm.gov; Carol_Taylor@ak.blm.gov Subject: RE: West Foreland #2Upper Distribution Jim: I can not speak for the Minerals Management Service, Minerals Royalty Management in regards to the collection of royalty from Pacific Energy. However, the BLM to date has not received the required information on disbursement as outlined in our approval Decision dated November 30, 2007, and again in our letter dated May 23, 2008, requesting escrow disbursement documentation. I have attached scanned copies of these letters for convenience. If I can be of any other assistance please let me know. (See attached file: AA-087827 West Forland #2 Request for Escrow Disbursement Documentation001.pdf)(See attached file: West Foreland #2 BLM Approval Doc.pdf) Thank you, /s/ Melissa Ainsworth Mineral Law Specialist NIAFMSS Local User Support Mineral Law and Solid Mineral Section Bureau of Land Management- Alaska 907-267-1212, 907-271-5718 phone 907-267-1304 fax melissa ainsworth@ak.blm.gov "Norman, John K (DOA)" <john.norman@alas To ka.gov> Jim Arlington <JDArlington@pacenergy.com> 11/20/2008 04:51 cc PM "Colombie, Jody J (DOA)" <jody.colombie@alaska.gov>, 1 "Stouffer, James A (DN~ <jim.stouffer@alaska.gov>, Elaine Knipe <eknipe@pacenergy.com>, "Ainsworth, Melissa" <Melissa Ainsworth@ak.blm.gov>, Alan Birnbaum <alan.birnbaum@alaska.gov> Subject RE: West Foreland #2Upper Distribution Dear Mr. Arlington, Thank you for this status report; however, what we need is funds escrowed. If Pacific Energy Resources, Ltd. is unable date, we will set the matter for hearing to determine why, date for distribution. John K. Norman Commissioner a date for distribution of the to specify the distribution and the Commission will fix a From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Thursday, November 20, 2008 4:25 PM To: Norman, John K (DOA) Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa Subject: FW: West Foreland #2Upper Distribution Commissioner Norman, I apologize for the delay in responding to your verbal request to me late last week to provide you an update regarding the progress in distributing the funds from the escrow account for the WF#2 gas well as authorized by Conservation Order No. 532B. As I mentioned to you on the phone when we spoke, I had been involved in a conference call just prior to your call to me with the accountants from Pacific Energy Resources, Ltd. and Forest Oil Corporation discussing exactly what was needed to be done in order to initiate the distribution of the escrowed funds. There was a punch list that our accounting department was going to put together of remaining action items and a designation of a responsible party for each action. I still have not received that list and just now have been made aware that our accounting department had sent to the DNR on November 4th distribution spreadsheets for them to approve in anticipation of a planned distribution last week. I am not aware if they have approved them. I am also not aware whether or not the MMS/BLM has been provided with similar distribution spreadsheets for them to approve relative to their interest in the escrowed funds, or if they have, if they have been approved. I was just informed today that our primary consultant involved with this distribution was sick all last week so that any planned distribution of the escrowed funds for last week could not occur. I have copied for you below a string of recent emails between me and our accounting department and other emails between our accounting department and the Commercial Analyst, Royalty Accounting Manager with ADNR, Division of Oil and Gas so that you can see what efforts have been made and are currently being made to expedite the distribution of these funds. I do not have any further information I can provide you at this time but will inform you as soon as I know of a more definitive time line for the distribution of the escrowed funds. As you can see from the communications all parties are working diligently 2 to conclude this distributio~y the end of this month. If you have any further questions regarding this matter or this transmittal please call me directly and I will provide you with whatever information I have concerning this matter. Sincerely yours, Jim Arlington 1-------------+----------------------------+----------------------------I ((Embedded I Pacific Energy Resources I I limage moved (Ltd. I Jim Arlington I Ito file: I I I Ipic08683.gif)) 310 "K" Street, Suite 700 I Vice President, Land & l I I Anchorage, AK 99501 Government Affairs I I I I I I Direct: (907) 868-2112 I jdarlington@pacenergy.com 1 I I Office: (907) 258-8600 I I I I Fax: (907) 258-8601 1 I I I Cell: (907) 350-2746 1 I i-------------+----------------------------+----------------------------1 From: Jim Arlington Sent: Thursday, November 20, 2008 3:27 PM To: Elaine Knipe Cc: Mark Oliver; Doug Jeric; Joe Kilchrist Subject: RE: West Foreland #2Upper Distribution Elaine, I can do that by calling or emailing Jim Stouffer with DNR or if you prefer you can contact Jim Stouffer directly. I desperately need ASAP the list of items remaining to be done in order to distribute the WF #2 well escrowed funds and a projected timeline as to when they will be completed. THANKS. Jim I-------------+----------------------------+---------------------------- ((Embedded I Pacific Energy Resources l limage moved (Ltd. I Jim Arlington Ito file: I I lpic08213.gif)l 310 "K" Street, Suite 700 I Vice President, Land & I I Anchora ge, AK 99501 I Government Affairs I I I I Direct: (907) 868-2112 I 1 jdarlington@pacenergy.com I I Office: (907) 258-8600 I I ( Fax: (907) 258-8601 l 3 Cell: ~7) 350-2746 I +-- +----------------------------I I------------- -------------------------- From: Elaine Knipe Sent: Thursday, November 20, 2008 2:32 PM To: Jim Arlington Cc: 'Mark Oliver'; Doug Jeric Subject: West Foreland #2Upper Distribution Jim, Please confirm that the State of Alaska interest to be earned is Bank of America prime rate plus 1.250. Elaine Knipe Controller - Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 3:32 PM To: Stouffer, James A (DNR) Cc: 'Mark Oliver'; Jim Arlington; Doug Jeric Subject: RE: West Foreland Escrow Distribution Jim, Besides the below 2 pricing questions below, do you have January 2004 price of No. 2 fuel Oil at Tesoro refinery at Niskski. Thank you for your assistance. Elaine Knipe Controller - Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 2:07 PM To: 'Stouffer, James A (DNR)' Cc: 'Mark Oliver' Subject: RE: West Foreland Escrow Distribution Jim Do you have the pricing of the following: 1. January 1, 2008 price of No 2 fuel oil at Tesoro refinery at Niskski. 2. August 1, 2008 price of No 2 oil at Tesoro Kenai refinery. 4 Thank you. Elaine Knipe Controller - Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Stouffer, James A (DNR) [mailto:jim.stouffer@alaska.gov] Sent: Monday, November 17, 2008 3:57 PM To: Elaine Knipe Subject: RE: West Foreland Escrow Distribution Elaine Are you waiting on me to do something before you send the reports and make distribution of the escrow account? I know that additional interest is due on the reports that Forest send since Norvin computed interest through 1.0/31/08. This can be accomplished on the payment summary report (S1) as OUI. Jim James A. Stouffer, CPA, CIA Commercial Analyst, Royalty Accounting N[anager AKDNR, Division of Oil and Gas 550 West 7th Ave., Suite 800 Anchorage, AK 99501 (907) 269-8796 (907) 269-8939 - Fax e-mail: jim.stouffer@alaska.gov From: Elaine Knipe [mailto:eknipe@pacene:rgy.com] Sent: Tuesday, November 04, 2008 1:44 PN[ To: Stouffer, James A (DNR) Subject: West Foreland Escrow Disttibution Jim, Please review and approve the attacr~ed West Foreland Escrow distribution worksheets. If you have any questions, please contact me. The planned distribution is next week. Thank you very much for your assistance. Elaine Knipe Controller - Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 5 • • a~{M~ ~ ryF ~~'~~ Uniter~ States Department of tie Interior BUREAU OF LAND MANAGEMENT Alaska State Office ~ 222 West Seventh Avenue, #13 Anchorage, Alaska 995 i 3-7504 http://www.blrn.gov/ak CERTIFIED MAIL RETURN RECEIPT REQUESTED In Reply Refer To: AA-87827 (AK932) May 23, 2008 Pacific Energy Alaska Operating LLC James Arlington, Manager, Land and Government Affairs 303 K Street, Suite 700 Anchorage, Alaska 99501 TAKE PRIDE' ~NAMERIGA Subject: Request for Escrow Disbursement Documentation for West Foreland #2 Royalty Sharing Agreement Mr. Arlington; On November 30, 2007, the Bureau of Land Management (BLM) approved and executed the West Foreland (WF) #2 Royalty Sharing Agreement (RSA}. Subsequently on January 30, 2008, the Alaska Oil and Gas Conservation Commission granted the UVF#2 well a permanent spacing exception. and authorized release of escrow funds to be disbursed as required by the WF#2 RSA. In our approval letter we required, "tTpon distribution of royalties from escrow, Pack .L'rtergy Alaska t~peraiing LLC (PEAC3) must provide the BLM with documentation that outlines for each party (Cook Inlet Region Inc., State of Alaska, and united States of America) the total amotcnt disbursed', principal amount of royalties, and the accrued interest amount bused on the interest rate outlined in the agreement. In addition, PEAO must provide a copy of the spreadsheet utilized in calculating royalties dare to the tT.S.A. and Cook Inlet Region Inc. These documents should be similar to the documents provided in the disbursement of royalties xtnder the YVest Foreland #1 Compensatory Royalty Agreement. " • -~ The BLM has not received the required documents. We hereby request that Pacific Energy Alaska Operating LLC submit the required documentation. within. 30 days of receipt of this letter. Royalty collection of escrowed funds has been referred to the Minerals Management Service, Minerals Revenue Management. If you have any question please contact Thomas Zelenka, Petroleum Engineer at 907-267-1469 or William Diel, Geologist at 907-267-1449. Sincerely, ~~` Greg 7. Noble Chief, Energy Section cc: Alaska Department of Natural Resources Division of Oil and Gas Mr. Kevin Banks, Acting Director 550 West 7`h Avenue, Suite 800 Anchorage, Alaska 99501-3560 Alaska Department of Natural Resources Division of Oil and Gas Ms. Temple Davidson, Unit Manager 550 West 7`h Avenue, Suite $00 Anchorage, Alaska 99501-3560 Cook Inlet Region, Inc. Ms. Kim Cunningham, Manager Lands and Resources P.O. Box 93330 Anchorage, Alaska 99509-3330 Minerals Management Service Attn: George Hutchison. P.O. 5760, NiS 357B1 Denver, Colorado 80217-5760 Alaska Oil anal Gas Conservation. Commission 333 West 7th Ave # 100 Anchorage, Alaska 99501-3539 • oPPS~ENT ~T"~~y~ United States Department of the Interior ~ a BUREAU OF LAND MANAGEMENT 4qR~ a ~gA Alaska State Office 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer To: AA-87827 (AK932) November 30, 2007 Pacific Energy Alaska Operating LLC Jim Arlington, Landman 303 K Street, Suite 700 Anchorage, Alaska 99501 Alaska Department of Natural Resources Division of Oil and Gas Mr. Kevin Banks, Acting Director 550 West 7`h Avenue, Suite 800 Anchorage, Alaska 99501-3560 Subject: Approval and Execution of West Foreland #2 Royalty Sharing Agreement Royalty and Production Reporting Requirements Gentlemen: ~i~~ T l?~t~~` ~N~M~RtGA On September 17, 2004, West Foreland We112 (WF#2) was drilled on Federal Lease A-035017. The WF#2 has a surface hole location in SE'/a SE'/a of Section 21, Township 8 North, Range 14 West, Seward Meridian (SM), Federal Lease No. A-035017 and bottom hole location in NE'/a NE'/a of Section 21, Township 8 North, Range 14 West, SM, State Lease No. ADL-359112. The well was completed in December 2004 and established production from Tyonek Formation sands (perforation interval: 8,494' - 8,525' MD) with initial production rates of 9992 Mcf/d. Since the well is producing hydrocarbons from both the Federal and the State lease- the attached royalty sharing agreement is necessary. The BLM, State of Alaska, and Forest Oil Corporation agree that, based upon geological and geophysical data, the equitable allocation to the two leases for production from gas bearing sands above the 9,200 ft sands is 90 % to the federal lease and 10 % to the state lease. Therefore, the Bureau of Land Management approves and executes the attached negotiated West Foreland Royalty #2 Sharing Agreement between the BLM, State of Alaska and Pacific Energy Alaska Operating LLC. • 2 Agreement number AA-087827 should be used when reporting production and royalties under the WF #2 Royalty Sharing Agreement to the Minerals Management Service (Forms MMS-2014 and MMS-4054). The effective date of first production is December 12, 2004. Upon distribution of royalties from escrow, Pacific Energy Alaska Operating LLC (PEAO) must provide the BLM with documentation that outlines for each party (Cook Inlet Region Inc., State. of Alaska, and United States of America) the total amount disbursed, principal amount of royalties, and the accrued interest amount based on the interest rate outlined in the agreement. In addition, PEAO must provide a copy of the spreadsheet utilized in calculating royalties due to the U.S.A. and Cook Inlet Region Inc. These- documents should be similar to the documents provided in the disbursement of royalties under the West Foreland #1 Compensatory Royalty Agreement. Copies of the executed agreement are being distributed to the appropriate Federal and State agencies, and CIRI. Please advise all other interested parties of the execution of this agreement. Any party adversely affected by an instruction, order or decision issued under the regulation in 43 CFR 3105 may request an administrative review before the State Director under 43 CFR 3165.3 of this title. Any party adversely affected by a decision of the State Director after State Director review may appeal that decision as provided in 43 CFR PaR 4. See DOI Form 1842-1 and 43 CFR Part 4, copies enclosed, for instructions. The appellant has the burden of showing that the decision appealed from is in error. Failure to file the notice of appeal with the Bureau within the time allowed will result in dismissal of the appeal: In order to avoid dismissal of the appeal, there must be strict compliance with the regulations.. Sincerely, G~ I%6l~ F~ Robert C. Fisk Chief, Branch of Energy 3 Attachments: 1. Executed West Foreland #2 Royalty Sharing Agreement (14pp) 2. DOI Form 1842-1(lp) 3.43 CFR Part 4 (lp) cc: Cook Inlet Region, Inc. Ms. Kim Cunningham, Manager .Lands and Resources P.O. Box 93330 Anchorage, Alaska 99509-3330 • Minerals Management Service Attn: George Hutchison P.O. 5760, MS 357B1 Denver, Colorado 80217-5760 Alaska Oil and Gas Conservation Commission 333 West 7th Ave # 100 Anchorage, Alaska 99501-3539 • • • Lessee has caused this Agreement to be executed in its corporate name by its proper, duly authorized officials; the United States has caused this Agreement to be executed by its Secretary of the Interior or his designated representative, pursuant to the authority provided by the Mineral Leasing Act of 1920, as amended, 30 U.S.C. § 181 et seq., and 43 C.F.R. § 3105.2, and in so doing has determined that the Agreement is in the public interest; and the State has caused this Agreement to be executed by its Department of Natural Resources Commissioner or his designated representative, pursuant to the authority provided by Alaska Statute sections 38.05.020(b) and 38.05.180(s), and in doing so has determined that the Agreement is in the public interest; all on the dates shown below. THE UNITED STATES OF AMERICA DEPARTMENT OF THE INTERIOR ON ITS OWN BEHALF AND ON BEHALF OF THE BUREAU OF LAND MANAGEMENT AND COOK INLET REGION, INC. By. ~ s Its1~ Chief, Energy Branch, Alaska State Office ~ Bureau of Land Management United States Department of the Interior Date: ///3D~C~7 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES By: Its: Director, Division of Oil and Gas Date: PACIFIC ENERGY ALASKA OPERATING LLC (FORMERLY KNOWN AS FOREST ALASKA OPERATING LLC) By: Its: Date: EXHIBITS: A. Map of Federal Lease, showing CIRI acreage and federal acreage B. Map of State Lease C. Memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS) Page 7 of 7 • Page 1 of 4 Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Thursday, November 20, 2008 4:51 PM To: Jim Arlington Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa; Birnbaum, Alan J (LAW) Subject: RE: West Foreland #2Upper Distribution Dear Mr. Arlington, Thank you for this status report; however, what we need is a date for distribution of the funds escrowed. If Pacific Energy Resources, Ltd. is unable to specify the distribution date, we wi{{ set the matter for hearing to determine why, and the Commission will fix a date for distribution. John K. Norman Commissioner From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Thursday, November 20, 2008 4:25 PM To: Norman, John K (DOA) Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa Subject: FW: West Foreland #2Upper Distribution Commissioner Norman, I apologize for the delay in responding to your verbal request to me late last week to provide you an update regarding the progress in distributing the funds from the escrow account for the WF#2 gas well as authorized by Conservation Order No. 532B. As I mentioned to you on the phone when we spoke, I had been involved in a conference call just prior to your call to me with the accountants from Pacific Energy Resources, Ltd. and Forest Oil Corporation discussing exactly what was needed to be done in order to initiate the distribution of the escrowed funds. There was a punch list that our accounting department was going to put together of remaining action items and a designation of a responsible party for each action. I still have not received that list and just now have been made aware that our accounting department had sent to the DNR on November 4th distribution spreadsheets for them to approve in anticipation of a planned distribution last week. I am not aware if they have approved them. I am also not aware whether or not the MMS/BLM has been provided with similar distribution spreadsheets for them to approve relative to their interest in the escrowed funds, or if they have, if they have been approved. I was just informed today that our primary consultant involved with this distribution was sick all last week so that any planned distribution of the escrowed funds for last week could not occur. I have copied for you below a string of recent emails between me and our accounting department and other emails between our accounting department and the Commercial Analyst, Royalty Accounting Manager with ADNR, Division of Oil and Gas so that you can see what efforts have been made and are currently being made to expedite the distribution of these funds. I do not have any further information I can provide you at this time but will inform you as soon as I know of a more definitive time line for the distribution of the escrowed funds. As you can see from the communications all parties are working diligently to conclude this distribution by the end of this month. If you have any further questions regarding this matter or this transmittal please call me directly and I will provide you with whatever information I have concerning this matter. 11/21/2008 Page 2 of 4 Sincerely yours, Jim Arlington Pacific Energy Resources Ltd. µ~~, ~~ , 310 °tc° Street, suite 70o Jim Arlington Anchorage, AK 99501 Vice President, Land & Direct: (907) 868-2112 Government Affairs Office: (907) 258-8600 Fax: (907) 258-8609 ~darlin ton Cell: (907) 350-2746 1-----g--..-.-@.p..acenergy..com From: Jim Arlington Sent: Thursday, November 20, 2008 3:27 PM To: Elaine Knipe Cc: Mark Oliver; Doug Jeric; Joe Kilchrist Subject: RE: West Foreland #2Upper Distribution Elaine, I can do that by calling or emailing Jim Stouffer with DNR or if you prefer you can contact Jim Stouffer directly. I desperately need ASAP the list of items remaining to be done in order to distribute the WF #2 well escrowed funds and a projected timeline as to when they will be completed. THANKS. Jim Pacific Energy Resources Ltd. 310 °i<° Street, suite 70o Jim Arlington Anchorage, AK 99501 Vice President Land & Direct: (907) 868-2112 Govemment Affairs Office: (907) 258-8600 Fax: (907) 258-8601 jdarlington@pacenergy.com Cell: (907) 350-2746 From: Elaine Knipe Sent: Thursday, November 20, 2008 2:32 PM To: Jim Arlington Cc: 'Mark Oliver'; Doug Jeric Subject: West Foreland #2Upper Distribution Jim, Please confirm that the State of Alaska interest to be earned is Bank of America prime rate plus 1.25%. Elaine Knipe 11/21/2008 Page 3 of 4 • Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 CeII: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 3:32 PM To: Stouffer, James A (DNR) Cc: 'Mark Oliver'; Jim Arlington; Doug Jeric Subject: RE: West Foreland Escrow Distribution Jim, Besides the below 2 pricing questions below, do you have January 2004 price of No. 2 fuel Oil at Tesoro refinery at Niskski. Thank you for your assistance. Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 CeII: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 2:07 PM To: 'Stouffer, James A (DNR)' Cc: 'Mark Oliver' Subject: RE: West Foreland Escrow Distribution Jim Do you have the pricing of the following: 1. January 1, 2008 price of No 2 fuel oil at Tesoro refinery at Niskski. 2. August 1, 2008 price of No 2 oil at Tesoro Kenai refinery. Thank you Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Stouffer, James A (DNR) [mailto:jim.stouffer@alaska.gov] 11/21/2008 Page 4 of 4 Sent: Monday, November 17, 2008 3:57 PM To: Elaine Knipe Subject: RE: West Foreland Escrow Distribution Elaine Are you waiting on me to do something before you send the reports and make distribution of the escrow account? I know that additional interest is due on the reports that Forest send since Norvin computed interest through 10/31/08. This can be accomplished on the payment summary report (S1) as OUI. Jim . Stouffer, CFA, CIA '_ai Analyst, R.;t%alt}' ~~c>>.znting I~lanager Division of Gil any: was `~:>C st ~t~_ _~~~.., Suite 800 °e, A~{ 99561. 109-8796 !"%, %69-P 939 - E'a~; - _..~1: ~im.stouffet~aia~,;a.got From: Elaine Knipe [mailto:eknipe@pacenergy.com] Sent: Tuesday, November 04, 2008 1:44 PM To: Stouffer, James A (DNR) Subject: West Foreland Escrow Distribution Jim, Please review and approve the attached West Foreland Escrow distribution worksheets. If you have any questions, please contact me. The planned distribution is next week. Thank you very much for your assistance. Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Ce I I: 310-970-2434 11/21/2008 ~6 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: John K. Norman, Chairman Daniel T. Seamount 3 Cathy Foerster ~ 4 In the Matter of the Application ) of FOREST OIL CORPORATION for ) 5 Conversion to a Permanent Spacing ) Exception for the West Foreland #2 ) 6 Gas Production Well Bore in ) Accordance with the Drilling Unit ) 7 and Spacing requirements of ) 20 AAC 25.055 and the requirements ) 8 of Conservation Order 532A ) 9 ALASKA OIL and GAS CONSERVATION COMMISSION 10 Anchorage, Alaska 11 January 17, 2008 9:00 o'clock a.m. 12 VOLUME I 13 PUBLIC HEARING 14 BEFORE: John K. Norman, Chairman Cathy Foerster, Commissioner 15 16 17 18 19 ~:1~ 20 JAN 2 3 ?~~ 21 Alaska Oil & Gay Cate. Ocmm~sg~a" Anchorag! 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • TABLE OF CONTENTS Opening remarks by Chairman Norman Testimony by James Arlington R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 06 • • 1 2 Tape 1 3 0050 4 5 6 7 8 9 10 11 12 13 14 15 16 17 I 18 19 20 21 22 I 23 24 25 I P R O C E E D I N G S (On record - 9:00 a.m.) CHAIRMAN NORMAN: Good morning. I'll call this meeting to order. First of all I'll introduce the bench, to my left is Commissioner Cathy Foerster, the engineering commissioner for the AOGCC and my name is John Norman and I am Chair of the Commission. The record does reflect that a recusal notice in this matter was filed by Commissioner Dan Seamount. However, a quorum of the Commission is present and we can proceed with the conduct of all legal business. If there are any persons present who might have a disability if you will indicate the Commission strives in every way to comply with the provisions of the Americans With Disabilities Act and if you indicate we will assist you so that you can participate in the hearing whether it's some assistance in hearing or seeing or access to the front of the room. The proceedings this morning will be recorded and following the hearing any persons desiring a transcript may obtain one by contacting R & R Court Reporting or alternatively contact the Commission's special assistant Jody Colombie and she will facilitate your obtaining a transcript. There are two microphones on the table and it will be R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 necessary for persons testifying to speak into both microphones. One of them is for amplification so that persons in the rear of the room can hear the testimony and the other one is to facilitate preparing the transcript of the hearing. This matter comes before the Commission with a bit of history. It is currently before us upon the application of Pacific Energy Alaska Operating LLC seeking conversion of prior orders to a Permanent Spacing Exception for the West Foreland No. 2 gas production wellbore in accordance with the drilling unit and spacing requirements of the Chapter 25, 20 AAC Section .055 and also with the requirements of a prior Commission order entered relative to this matter, that being Commission -- or Conservation Order No. 532. Notice of this hearing was published in the Anchorage Daily News on December 12th, 2007. Additionally notice has been published on the State of Alaska's on-line notice service and also has been published on the Alaska Oil and Gas Conservation Commission website. Persons testifying will be sworn and I will pause now to see if Commissioner Foerster has anything she would like to say before we begin? COMMISSIONER FOERSTER: The cookies are delicious. CHAIRMAN NORMAN: Very well. As indicated this is an application to convert to a permanent spacing exception. There have been some prior orders and a bit of history. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 4 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The application also with cover letter asks in addition authorization from the Alaska Oil and Gas Conservation Commission to disburse funds from the escrow account which Forest Oil, predecessor in interest of Pacific Energy Alaska Operating LLC, had established for the West Foreland No. 2 well in accordance with the provisions of Conservation Order No. 532. The request goes on to ask authorization to terminate the escrow account and after termination to make future royalty payments to all owners, landowners and royalty owners including overriding royalty interest owners from production from any sands stratigraphically shallower than the 9,200 foot sand in the Wells Far- -- correction, in West Foreland No. 2 well in accordance with the terms of a Revenue (sic) Sharing Agreement. There has been filed with the Commission a Revenue (sic) Sharing Agreement which is in the file consisting of five. pages. Parties to that agreement are Pacific Energy Alaska Operating LLC, the State of Alaska represented by its director, Division of Oil and Gas and the United States represented by the chief energy branch, Alaska State Office Bureau of Land Management, United States Department of Interior. Mr. Arlington, we'll hear from you right now and it will be helpful in order to conclude this matter today if you could sketch in a bit of the history on this so that persons in the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 • • 1 2 311 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I future who might look at the transcript of this hearing will have some background as to events leading up to today and what this agreement is intended to cap off and conclude. MR. ARLINGTON: Okay. Did you want to swear me in? CHAIRMAN NORMAN: Yes. (Oath Administered) MR. ARLINGTON: Yes, I do. CHAIRMAN NORMAN: Please state your name? MR. ARLINGTON: My name is Jim Arlington. CHAIRMAN NORMAN: And please state who you are representing and your position? MR. ARLINGTON: I'll actually representing two companies. I'm representing Forest Oil Corporation, the predecessor in interest to the other company I'm representing which is the successor in interest to Forest Oil Corporation and that company is Pacific Energy Alaska Operating LLC, as well as their parent Pacific Energy Resources Limited. CHAIRMAN NORMAN: Very well. Please proceed. TESTIMONY OF JIM ARLINGTON MR. ARLINGTON: Okay. Thank you, Mr. Chairman. Real quickly just a point of clarification. I think you did a very good job in summarizing the history of the application. The RSA that was referenced, however, is a Royalty Sharing Agreement as opposed to a Revenue Sharing Agreement. CHAIRMAN NORMAN: I'm sorry, I misspoke if I said revenue, R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 • • 1 ~~ Yes . 2 3 4 5 6 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ARLINGTON: Okay, no problem. And I'll get to that in a little bit. Also, in addition to the notices that you indicated that had been issued by the Commission, I want to give the Commission a copy of the notice, the personal notice that was sent by Forest Oil Corporation on December 13th and copies of the certified receipts to that notice for each of the royalty owners, overriding royalty owners, which that personal notice was sent. CHAIRMAN NORMAN: Very well. Without objection this will be placed in the record. It consists of a letter of..... 7 8 9 10 MR. ARLINGTON: It should be a one page letter. CHAIRMAN NORMAN: .....a one page letter..... MR. ARLINGTON: With attachments. CHAIRMAN NORMAN: .....with attachments and with certified mail return receipts. And these represent all of the overriding royalty interest owners in the two leases? MR. ARLINGTON: That's correct. CHAIRMAN NORMAN: Verv well. MR. ARLINGTON: Okay. As the Chairman indicated this matter has a fairly long history that begins with the Order affecting the West Foreland No. 1 well. And the West Foreland No. 1 well is subject to a spacing exception issued by this Commission that allocated production from sands that were opened to the wellbore drilled in the early '60s and allocated R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCNORAGE, ALASKA 99501 7 • • l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 production between the Federal lease and the State lease, 58 percent, 42 percent. 58 percent in that case to the State lease and 42 percent to the Federal lease. When Forest Oil determined that there was an opportunity to see production from one of the wellbores in the West Foreland No. 1 well and the horizon that was opened to the wellbore in the West Foreland No. 1 that was not producing it determined to drill the West Foreland No. 2 well and made application to this Commission. And, I'm sorry, I don't think I have the date on which we made the original application. I didn't think I would have to go through all that history, but in any event..... CHAIRMAN NORMAN: That's all right, that stands as a matter of record and the record consists of all the documents filed so it isn't necessary, but it will be helpful for those in the audience and for those who may in the future review the transcript if you just hit the..... MR. ARLINGTON: Hit the highlights, okay. CHAIRMAN NORMAN: .....basics and -- and the exact dates will be determined by referring to the documents in the record. MR. ARLINGTON: Thank you, appreciate that. Forest Oil then made application to the Commission for a spacing exception in order to drill the West Foreland No. 2 well. The hearing before the Commission took place and it was determined that there may be sands shallower than those open in the wellbore R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 8 • • 1 2 3i 4 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 encountered in the West Foreland No. 1 well, but could be encountered for production in the West Foreland No. 2. The Commission determined to issue a temporary spacing exception which it did. I believe that was -- 542 was the Conservation Order, so the well commenced. The West Foreland No. 2 well did encounter production in an interval that was in communication with a horizon that was encountered in the West Foreland No. 1 well. The Conservation Order and the -- effecting the West Foreland No. 1 well took into account and acknowledged a Compensatory Royalty Agreement that was executed between the two landowners, the Bureau of Land Management and the State of Alaska and the operator recognizing that if there were any additional wells drilled that encountered horizons that were in communication with the zones affected and addressed by that Compensatory Royalty Agreement then the production and the royalties would be allocated pursuant to the terms of that Compensatory Royalty Agreement. The West Foreland No. 2 well did encounter a zone that was in communication with the zone affected by that Compensatory Royalty agreement. However, there was a shallower interval encountered and so it was necessary to come to an agreement between the landowners, the Bureau of Land Management and the State of Alaska so to how the production should be allocated between the shallower zones. Hence, the need for a Royalty R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 9 • ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sharing Agreement separate and apart from the previous Compensatory Royalty Agreement. As you recall the Conservation Order issued by this Commission indicated that that would need to take place. You put in place various requirements for escrowing funds similar to the requirements in the earlier Conservation Order effecting the West Foreland No. 1 well. That escrow account was established by Forest Oil Corporation. And I should say that -- well, I'll get to that in just a minute. That escrow account was established. It's in effect as we speak right now. The parties, the operator who is now Pacific Energy Resources Limited is the operator. The landowner is Pacific Energy Alaska Operating LLC, a wholly owned subsidiary of the parent, Pacific Energy Resources Limited, assumed the assets in the escrow account as part of the transaction, the acquisition from Forest of all Forest assets in Alaska. The account is still established at First National Bank Alaska. It's in the name of the successor as I indicated, Pacific Energy Alaska -- should be Pacific Energy Alaska Operating LLC. The parties executed the Royalty Sharing Agreement, the RSA, in the early part of December. One of the conditions of this body, this Commission for disbursing the funds was that there be an agreement between the landowners and furthermore there was a condition that in order for the temporary spacing R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 • ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 exception to be converted to a permanent spacing exception that that agreement had to be in place. So it took much longer than I had anticipated to get the parties to execute. As soon as they did I forwarded the letter of December 7th to this body with a copy of that executed agreement, Royalty Sharing Agreement, and requesting as the Chair pointed out that the temporary spacing exception be converted to a permanent spacing exception for the West Foreland No. 2. That the Commission authorize the disbursement of the funds from the escrow account. The termination of the escrow account and that further production for the shallow horizon be distributed by the operator pursuant to the Royalty Sharing Agreement. I think that pretty much sums it up. CHAIRMAN NORMAN: Very Well. Any questions, Commissioner Foerster? COMMISSIONER FOERSTER: No. CHAIRMAN NORMAN: The file does reflect, as earlier indicated, the signatures on the Royalty Sharing Agreement representing the principal -- well, the royalty owners, the United States on its own behalf and as an administrator acting for Cook Inlet Region, Inc., the State of Alaska and Pacific Energy Alaska Operating, LLC formally known as Forest Alaska Operating LLC successor in interest Forest Oil Corporation. Additionally you have provided to us a copy of the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 notification of this hearing and the notification that the executed agreement has been sent to all overriding royalty interest owners. And the file does not reflect any objection by any party, but I will ask you whether you are aware of anyone objecting to what has been requested here? MR. ARLINGTON: Right. Just a point of clarification, I did not provide a copy of the Royalty Sharing Agreement to the overriding royalty interest owners. Just indication to them that there is a Royalty Sharing Agreement that was put in place and then basically what the provisions as far as percentage allocations were, so just a point of clarification. They did not get an executed copy of the Royalty Sharing Agreement, but I did give them copies of the orders and everything that was indicated in that letter that was sent in December..... CHAIRMAN NORMAN: Okay. MR. ARLINGTON: .....as attachment. I..... CHAIRMAN NORMAN: They are -- if I could ask, we haven't had time to read this, but they are aware of the allocation, the 90/10 allocation as between..... MR. ARLINGTON: Yes. CHAIRMAN NORMAN: .....ADL and the upland federal lease? MR. ARLINGTON: Yes, that --..... CHAIRMAN NORMAN: Okay. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ARLINGTON: .....that's indicated in the body of the personal notice dated December 13th that was sent to them. So they know that if they're interest is in the federal lease that they would be getting 90 percent of the production and if they've got an override on the state lease that they would be getting 10 percent of those production pursuant to the terms of that RSA. And, no, I have received no objections or -- to the allocation. I've received only two pieces of correspondence, two phone calls, no e-mails, even though -- I have my e-mail address included in the -- in the letter, in the notice letter. I've received two phone calls. I'm trying to think if they were both -- both of them were overriding royalty interest owners whose interest was on the state lease and neither of them had any objections. They were more or less just curious as to the proceedings and the procedures and how long it would take to get the funds out of the escrow account. CHAIRMAN NORMAN: Very well. Were there any of the receipts from the royalty interest owners that were not returned? We've not had time to look at this, but..... MR. ARLINGTON: No, no not..... CHAIRMAN NORMAN: So they're all accounted for? MR. ARLINGTON: To the best of my knowledge, I -- I didn't go through and account for each one of those, but I would have been advised by our administrative aid if that had been the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 case and I have not been given that information. CHAIRMAN NORMAN: Okay. So to sum up, to the best of your knowledge all of the overriding royalty interest owners on both the federal uplands lease and the adjacent state ADL..... MR. ARLINGTON: Received the personal notice I sent, yes. CHAIRMAN NORMAN: .....received a personal notice. And that we have their return receipts in file. We don't have then any other questions, if Commissioner Foerster has nothing and I don't. I do appreciate you summarizing that, Mr. Arlington and I can tell you that the Commission is pleased to see this being concluded. If you will remain in case something..... MR. ARLINGTON: Yes. CHAIRMAN NORMAN: .....does come up that would require a question, we would appreciate it, but I'll ask now if there are any other persons present, representatives of any of the parties or any other persons who would like to comment to the Commission? Okay. The file does reflect notice to the principal parties and so now is your opportunity to comment if you have any concern about the Royalty Sharing Agreement and also the disbursement of funds and termination of the escrow account that will follow. The Commission will interpret by the silence of the parties that the State of Alaska, the United States and the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 • ~ 1 2 3 4 5i 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 United States as representative of CIRI are satisfied with what has been filed and are in agreement with what's being requested. If there is no further testimony then and no further questions, then without objection we will stand adjourned at the hour of 9:25 a.m. (Recessed - 9:25 a.m.) R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) ss . 3 STATE OF ALASKA ) 4 I, Suzan Kay Olson, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing In the Matter of the Application by FOREST OIL CORPORATION, for 7 Conversion to a Permanent Spacing Exception for the West Foreland #2 Gas Production Well Bore in Accordance with the 8 Drilling Unit and Spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532A, was taken by Suzan 9 Olson on the 17th day of January, 2008, commencing at the hour of 9:00 a.m., at the Alaska Oil and Gas Conservation 10 Commission, Anchorage, Alaska; 11 THAT this Hearing Transcript, as heretofore annexed, is a true and correct transcription of the proceedings taken and 12 transcribed by Suzan Olson; 13 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 18th day of January, 2008. 14 15 Notary u 'c in d for.. Al ka 16 My Commission Expires: 08/01 7 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 • • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Forest Oil Corporation West Foreland #2 Spacing Exception January 17, 2008 at 9:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (P~AS~`PRINT) ~AJf ~ /~ +~?~ ~.s 7 `~~'~~ - I ~ ~~ ~s~n ~~. Cdr ~rso 1 >~~ 1k o OvrSfO~l ~, g~~~~ ~s ~~,,..,1 (..~ , ~ s ~ i,.~ ~s ~; ~ ~ ~ o ~ sa. ~- ~~o ~~ z i 3 ~ Tl o ~~ ~rG~~ A~'z ~,c~' No ~iL L~ ~J I ~~iRo~~M ~~w5 No ~t~,a)S ~cn~)ingn DLL ~ ~~Y~y,~'r~4r~1 /~ 'V ~ ~ SSA ~1 Yl~~t~0 r`~ I,~~YYI A 7 L~ morn ~~l~~f a f3~M ~~ S/~~~o~y ~A2A~,~s~~ G~3C-I'~1 N ~ • • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Forest Oil Corporation West Foreland #2 Spacing Exception Januar3~ 17, 2008 at 9:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ~~ Page 1 of 1 Colombie, Jody J (DOA) From: Davidson, Temple (DNR) Sent: Tuesday, January 15, 2008 3:28 PM To: Jim Arlington; Melissa_Ainsworth@ak.blm.gov Cc: Tony C. Marino; Greg_Noble@blm.gov; Wolf, Lynn G.; Leonard Gurule; Paul Winslow; Colombie, Jody J (DOA); Joe Kilchrist Subject: RE: Public Notice West Foreland #2 Hi Jim, I will not be able to attend as I am due in a different meeting at that time. I will forward to our Resource Eval Group and see if anyone can attend. Thanks, Temple Ms. Temple Davidson Petroleum Land Manager State of Alaska Department of Natural Resources Division of Oil and Gas Suite 800 550 West 7th Avenue Anchorage, Alaska 99501 (907) 269-8784 From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Tuesday, January 15, 2008 2:25 PM To: Melissa_Ainsworth@ak.blm.gov; Davidson, Temple (DNR) Cc: Tony C. Marino; Greg_Noble@blm.gov; Wolf, Lynn G.; Leonard Gurule; Paul Winslow; Colombie, Jody J (DOA); Joe Kilchrist Subject: FW: Public Notice West Foreland #2 Melissa & Temple, I wanted to confirm that both of you are planning on attending the hearing this week (January 17th) at the AOGCC offices regarding the WF #2 well spacing exception (see attached Notice of Public Hearing). As far as I know today the hearing is still scheduled to take place. However, as it stands now, it looks like I will be the only person attending representing either Forest Oil Corporation or Pacific Energy Resources Ltd. So, if you have any technical personnel from your respective offices who can come to the hearing to testify as to the credibility of the data that was used to finalize the allocations agreed upon in the Royalty Sharing Agreement it would be appreciated. If you have any questions please let me know. I look forward to seeing both of you there! Best regards, Jim From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Tuesday, December 11, 2007 8:59 AM Subject: Public Notice West Foreland #2 1/15/2008 Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, January 15, 2008 2:34 PM To: 'Jim Arlington'; Melissa Ainsworth@ak.blm.gov; Davidson, Temple (DNR) Cc: Tony C. Marino; Greg_Noble@blm.gov; Wolf, Lynn G.; Leonard Gurule; Paul Winslow; Joe Kilchrist Subject: RE: Public Notice West Foreland #2 Mr. Arlington, The hearing will be going forward; we will see yvu on Thursday, January 17, 2008 at 9:00 am. Jody Colombie From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Tuesday, January 15, 2008 2:25 PM To: Melissa_Ainsworth@ak.blm.gov; Davidson, Temple (DNR) Cc: Tony C. Marino; Greg_Noble@blm.gov; Wolf, Lynn G.; Leonard Gurule; Paul Winslow; Colombie, Jody J (DOA); Joe Kilchrist Subject: FW: Public Notice West Foreland #2 Melissa & Temple, I wanted to confirm that both of you are planning on attending the hearing this week (January 17th) at the AOGCC offices regarding the WF #2 well spacing exception (see attached Notice of Public Hearing). As far as I know today the hearing is still scheduled to take place. However, as it stands now, it looks like I will be the only person attending representing either Forest Oil Corporation or Pacific Energy Resources Ltd. So, if you have any technical personnel from your respective offices who can come to the hearing to testify as to the credibility of the data that was used to finalize the allocations agreed upon in the Royalty Sharing Agreement it would be appreciated. If you have any questions please let me know. I look forward to seeing both of you there! Best regards, Jim From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Tuesday, December 11, 2007 8:59 AM Subject: Public Notice West Foreland #2 1/15/2008 =I STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRE F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT I DATE OF A.O. PHONE IPCN DATES ADVERTISEMENT REQUIRED: December 12, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchors e AK 99501 REF TYPE NUMBER AMOUNT DATE 1 VEN s ARr~ 02910 FIN AMOUNT SY CC PGM 1 08 02140100 2 ,. PAGE 1 OF I TOTAL OF 2 PAGES ALL PAGE LC ACCT FY NMR DIST 73451 DIVISION APPROVAL: 02-902 (Rev. 3/94) PublisherlOriginal Copies: Department Fiscal, Department, Receiving ADVERTISING ORDER NO. NOTICE TO PUBLISHER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED eO_02814031 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF r'~ ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Forest Oil Corporation ("Forest") for conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532A. Forest, by letter dated December 7, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on that same day, requests a permanent spacing exception to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the West Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. West Foreland #2 is a deviated well bore. The surface location of the well is 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well is 760 feet from the north line and 1,146 feet from the east line of 21, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for January 17, 2008 at 9:00 am at the offices of 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 December 28, 2007. 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 ca11793-1221 after January 10, 2008. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on January 14, 2008 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the January 17, 2008 hearing. If you are a person with a disabil' y o may need special accommodations in order to comment or to attend th i hear' g, please contact the Commission's Special Assistant Jody Colombie 79~-1 _ h Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, December 11, 2007 8:56 AM To: 'Ads, Legal' Subject: Public Notice Attachments: Ad Order ADN form.doc; West_Foreland_2_Notice_of_Public_Hearing 12-10-07.doc 12/11/2007 • ~ Page 1 of 2 Colombie, Jody J (DOA) From: Ads, Legal [legalads@adn.com] Sent: Tuesday, December 11, 2007 10:01 AM To: Colombie, Jody J (DOA) Subject: RE: Public Notice Attachments: STOF0330 - Preview.pdf; STOF0330 - Verification.pdf Following is the confirmation on your legal notice. Please fully review all attachments and let me know if there are any changes. And, please let me know if you have any questions or need additional information. AFFIDAVITS WILL BE MAILED OUT APPROXIMATELY 10 BUSINESS DAYS AFTER THE LAST DATE OF PUBLICATION. PLEASE KEEP THE FOLLOWING INFORMATION AS IT WILL UICKLY ASSIST IN THE CASE THIS AD NEEDS TO BE PULLED UP IN THE FUTURE. Account Number: Legal Ad Number: Classification: Publication Date(s): Your Reference Number: Total Cost of Legal Notice: STOF0330 394872 Public Notices (9075) December 12, 2007 02814031 $235.72 Email legal ads to legalads@adn com. l View legal ads at htt~:ll..wwwaegalnotice.org/plladn/land_ingl.asp..x Angelina Benjamin Classified Legal Specialist ~ Anchorage Daily News Direct: 907-257-4296 i Fax: 907-279-8170 ABenjamn a~adn.com i 1001 Northway Drive i Anchorage, AK 99508 ~~lnchc~r"a~ Dail, News. Anchorage Daily News products reach more than 300,000 Alaskans every week. Visit us at adn.com and Alaska.com -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Tuesday, December 11, 2007 8:56 AM 12/11/2007 Page 2 of 2 To: Ads, Legal Subject: Public Notice 12/11/2007 Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 394872 12/12/2007 02814031 STOF0330 $235.72 $235.72 $0.00 $0.00 $0.00 $0.00 $0.00 $235.72 STATE OF ALASKA THIRD JUDICIAL DISTRICT Angelina Benjamin, 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 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. .J Signed ~ ~ ? ~ =~~~ ~~~~~ Subscribed and sworn o me efore this date: o Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ii, 5f+,f 3 ~ ~t. ~ ' ' .- .. ~„ ~ ~ ~J~.L ;, .. ... --- .- .~. ;• ~s~ ~lBLIG ~ ~ 111 ~~ ~ ~,+~E Notice of Public Hearing.. STATE OF ALASKA Alaska Oil and Gas Conservation Commission i Re: The applicatioh of Forest OiiCOrporation ("Forest") forconversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements bf 20 AAC 25.055 and the requirements of Conservation Order 532A. Forest, by letter dated December 7, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission') on that same day, requests a permanent spacing exception to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the west Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool west Foreland #2 i5a dew ted welF tiore. The surface location of the well is 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well is 760 feet from the north line and 1,146 feet from the east line of 21, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for January 17, 2008 at 9:00 am at the ofhces of 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 December 28, 2007. 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 after January 10, 2008. In addition, a person may submit a written protest. or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avl;nue, Suite 100, Anchorage; Alaska 99501. Protests and comments must be received noiatet than 4:30 pm:on January 14, 2008 except that if the Commission decides to hold a public hearingg protests or comments must be received no later than the. conclusion of the January 17, 2008 hearing. If you are a persogwith a, disability who may need special accommodations in'order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 793-1221. John K. Norman Chairman AO-02814031 Publish: December 12, 2007 ,. L,~ i ~ L`. ~:,. ,~ :? U ~~ l ~las~a t~s! ~:._. ~~.i, L -,~ -+,.• ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02814031 !1 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7~' Avenue. Suite 100 ° Anch~rage_ AK 995(11 PHONE PCN M 907-793-1238 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News December 12 2007 , PO Box 149001 Anchora e AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ~ ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states Df America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. 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 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 • ~ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, December 11, 2007 8:59 AM Subject: Public Notice West Foreland #2 Attachments: West Foreland #2 Public Notice.pdf BCC:McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raff ; Arion, Teri A (DNR); 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; .'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'many'; 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman ; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Attachments: West Foreland #2 Public Notice.pdf; 12/11/2007 Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 ~ / -~ Barrow, AK 99723 ~~ ~~ d ~ #3 ~ • Page 1 of 1 Colombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Wednesday, December 12, 2007 1:38 PM To: ddonkel@cfl.rr.com Cc: Colombie, Jody J (DOA) Subject: RE: Public Notice West Foreland #2 Donkel and Wagner oil and gas interest. Mr. Donkel: The West Foreland #2 spacing exception application affects federal lease A-035017, largely held by CIRI now, and state lease ADL-359112. There are apparently overriding royalty interests (ORRI) in both leases. I've tried to locate who has ORRIs for these leases but have been unsuccessful in these efforts. Any party that does have an ORRI in one or both of these leases could be affected by this matter. Regards, Dave Roby Phone: 907-793-1232 email: d.ave_ro_by..@alas_ka.....go_v_ From: Colombie, Jody J (DOA) Sent: Wednesday, December 12, 2007 9:08 AM To: Roby, David S (DOA} Subject: FW: Public Notice West Foreland #2 Donkel and Wagner oil and gas interest. Please respond. From: ddonkel@cfl.rr.com [mailto:ddonkel@cfl.rr.com] Sent: Tuesday, December 11, 2007 3:13 PM To: Colombie, Jody J (DOA) Cc: SAMUEL H. CADE; Rick Wagner Subject: Re: Public Notice West Foreland #2 Donkel and Wagner oil and gas interest. Dear AOGCC Will this affect Cade's,Wagner or my oil and gas interest and others in this area in of Alaska? Daniel K. Donkel Ph: 386-226-4344 Cell: 407-375-8500 Fax: 386-252-3703 d..donkel..@cfl. rr.co.m 1420 N. Atlantic Avenue Suite# 1201 Daytona Beach, FL 32118-3567 ----- Original Message ----- From: Colombie, Jody J {DOA) Sent: Tuesday, December 11, 2007 12:58 PM Subject: Public Notice West Foreland #2 12/12/2007 ~2 Page 1 of 1 Colombie, Jody J (DOA) From: Jim Arlington [JDArlington@forestoil.com] Sent: Tuesday, December 11, 2007 12:46 PM To: PE: George Paspalof; Davidson, Temple (DNR); Melissa_Ainsworth@ak.blm.gov; Kim Cunningham Cc: Colombie, Jody J (DOA); Norman, John K (DOA); Leonard Gurule; Paul Winslow; PE: Joe Kilchrist; Tony C. Marino; Lynn G. Wolf Subject: WF #2 well permanent spacing exception Attachments: Certified mail return receipts & cards_Forest transmittal to DNR-BLM-CIRI-PEAO WF #2 12- 10-2007.pdf; Forest transmittal to DNR-BLM-CIRI-PEAO_AOGCC spacing exception & RSA for WF #2_12-10-2007.pdf; AOGCC West Foreland #2 Public Notice_12-11-2007.pdf; Application Itr to AOGCC_WF #2_permanent spacing exception transmittal of RSA_receipt stamped_12-07-2007. pdf All, I have attached a stamped "Received" copy of a letter from Forest Oil Corporation ("Forest") to the Alaska Oil and Gas Conservation Commission ("AOGCC"), dated December 7, 2007, requesting the AOGCC to (1) process the application submitted by Forest on August 8, 2007 to issue a permanent order exempting the West Foreland #2 well ("WF #2") from the drilling umt and spacing requirements of 20 AAC 25.055 as they pertain to the gas pool within the West Foreland Field, and (2) schedule a public hearing pursuant to Conservation Order 532 and authorize the disbursement of funds from the WF #2 escrow account Forest established. The letter also transmitted the Royalty Sharing Agreement executed by the affected owners and landowners. A hard copy of that letter with all attachments has been sent to you by certified mail (see attachment of return recei t copies). The PEAO copy was hand- delivered to George Paspalof yesterday in the Anchorage off~ces of Forest Oil Corporation/Pacific Energy Alaska Operating LLC. The AOGCC has today issued a public notice scheduling a hearing as Forest Oil requested in that application letter (see attached). That hearing is scheduled for January 17, 2008. I will be sending a personal notice to each of the royalty owners (including ORRI) in the two affected leases this week pursuant to Conservation Order 532. Should you have any questions regarding this transmittal please call me at (907) 868-2112. Jim 12/11/2007 • .~: ~ _ ~. . -~~' , .- yt~-. 1~ t}~. ~~h `r t e ~~ ~~ a`: !'~ ,~ ... December 10, 2007 Ms. Melissa Ainsworth Mineral Law Specialist US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507-2599 Ms. Temple Davidson Petroleum Land Manager State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7°i Avenue, Suite 800 Anchorage, AK 99501 Ms. Kim Cunningham Director, Land & Resources 2525 C Street, Suite 500 P.O. Box 93330 Anchorage, Alaska 99509-3330 Mr. George Paspalof Pacific Energy Alaska Operating LLC 111 West Ocean Blvd. Long Beach, CA 90802 ~.l//i~ .,~.j,5'-.S'I'C:;/~ ~ ~.(I/~~/ -~C,_ 5,/i.('i ~`_~'n.~'~ RE: Application for Permanent Spacing Exception for the West Foreland #2 Well. ("WF #2") West Foreland Field; West Foreland Undefined Gas Pool Dear Madams and Sir: Attached please find a copy of a letter, with attachments, from Forest Oil Corporation ("Forest") to the Alaska Oil and Gas Conservation Commission ("AOGCC"), dated December 7, 2007, requesting the AOGCC to (1) process the application submitted by Forest on August 8, 2007 to issue a permanent order exempting the West Foreland #2 well ("WF #2") from the drilling unit and spacing requirements of 20 AAC 25.055 as they pertain to the gas pool within the West Foreland. Field, and (2) schedule a public hearing pursuant to Conservation Order 532 and authorize the disbursement of funds from the WF #2 escrow account Forest established. The letter also transmitted the Royalty Sharing Agreement executed by the affected owners and landowners. Should you have any questions regarding this transmittal please call me at (907) 868-2112. Sincerely, FOREST OIL CORPORATION ,f im Arlington C ,, Land Manager-Alaska Business Unit Attachment: Forest Oil Corporation letter to the AOGGC, with attachments, RE application for permanent spacing exception for the West Foreland #2 Well, dated December 7, 2007: • F O R E S T O I L C O R P O R A T I O N ~, Page 1 of 1 items 1, 2, and 3. Also complete estricted Delivery is desired. name and address on the reverse can return the card to you. card to the back of the mailpiece, ront if space permits. essed to m Cunningham tr, Land & Resources ~x 93330 age, AK 99509-3330 A. Signature ^ Agent X ^ Addressee B. Received by (Printed Name) C. Date of Delivery D. Is delivery address different from item 1? ^ Yes If YES, enter delivery address below: ^ No 3. Service Type ^ Certified Mail ^ Express Mail ^ Registered ^ Return Receipt for Merchandise ^ Insured Mail ^ C.O.D. 4. Restricted Delivery? (Extra Fee) ^ Yes bar .m service label) CERTIFIED MAILTr.,.Fi {AomesEic Mail Only; No lnsut'an Q Return Reciept Fee (~ Poi ~ (Endorsement Required) , ` 0 Restricted Delivery Fee ~ (Endorsement Required) i ,m j j ~ Total Postage & Fees ~ ~+. tCJ ~-- o Sentro Ms. Kim Cunningham - ~ r- ~~~ ApE N~ Director, Land & Resources i orP09oxNo. P Q. BOX 93330 city stale, zil I Anchorage, AK 99509-3330 . , ;-_ 11 , August 2001 Domestic Return Receipt 102595.02-M•0935 s ilia ii ii I i ii uil li ~ ~ ~ ! ~ ~ VI A ~~ _~ II . ~~ Y ~ items 1, 2, and 3. Also complete A. Signature ^ Agent ~' [`- ! ~ ~~ ~ - , c iestricted Delivery is desired. X ^ Addressee ' ~ ~ ' rs name and address on the reverse ~- ecan return the card to you. g. Received by (Printed Name) C. Date of Delivery ' - • s card to the back of the mailpiece, ~ ~ ~" ~ _ +" r t?~ ~ ~ t ~ front if space permits. D. Is delivery address different from item 1? ^ Yes ^ N ~r1 n_I x"~ ' ~° ~ r e $ Posta Tressed to: If YES, enter delivery address below: o • g ~ p Certified Fee d ~lL~ O I p Return Reciept Fae ample Davidson i (EndorsemsntRequirad) ~ .f AK DTIR r°n (F~do~s°Bm nt Requited) ~n of Oil and Gas s. service Type ' m '~ / SUlte 800 7~' Ave ^ Certified Mail ^ Express Mail i handise M f " '' - ~~ Total Postage & Fees ~ ~t,.:~ ¢- , pt ^ Registered ^ Return Rece erc or ~ ' Ms. Temple Davidson rage, AK 99501 ^ Insured Mail ^ c.o.D. , o o ant t State of AK DNR Restricted Delivery? (6rtra Fee) 4 ^ Yes ~ f`-' SireeL' . i orP01 Division of Oil and Gas mbar 7pp4 1,35 X001 2579 4567 ~ ~"y s! 550 W 7u' Ave, Suite 800 ~om service label) M 083 , 5'~ Anchorage AK 99501 311, August 2001 Domestic Return Receipt • ,02595-02- .. , Postmark Hera terns 1, 2, and 3. Also complete A. Signature ' ~ ^ Agent ' ~`' t 1 ~ >stricted Delivery is desired. X ~ i . - • lame and address on the reverse ^ Addressee ~' can return the card to you. B. Received by (Printed Name) C. Date of Delivery ~ ~ '• r~u«~~ `' •` , ~ card to the back of the mailpiece, ' ~ I ' ~) ermits t if s ace ~ ~, '~ ` . p p on D. Is delivery address different from item i? ^ Yes ~ Q a ~ ;ssed to: If YES, enter delivery address below: ^ No ~ Postage ~ r V ~ Cerifed Fee a r ssa Ainsworth o Return Reciept Fee (Endorsement Required} ^~ l r d \ J P Home k . of the Interior o Restricted Delivery Fee ~ ll'1 (Endorsement Required) If Land Management i T e 3 S m j / ~''1 bolt Loop Rd yp erv ce . ^ Certified Mail ^ Express Mall I ~ Total Postage & Fees / • ~ C~ fG' c~""" ;e AK 99507 ^ Registered ^ Return Receipt for Merchandise M o of o Ms. Melissa Ainsworth , ^ Insured Mail ^ c.o.D. ! a US Dept. of the Interior 4. Restricted Delivery? (Extra Fae) ^ Yes j f` 5lreet, ii; orpo86 Bureau of Land Management bar 7004 1350 ~~~1 2579 4574 I ~'~%S~!6881 Abbott LOOP Rd m service labeq ' AnChOrage, AK 99507 ~ 1, August 2001 Domestic Return Receipt 102595.02-M•0836 704 ],35~ X001, 2579 455 • i C F O R E S T O I L C O R P O R A T I O N December 7, 2007 s ~ 'f ~ ~~~~, ~;Aif9f!li~$-p ~a;~;;:ts~r~ga Mr. John Norman, Chair Hand-Delivered Alaska Oil and Gas Conservation Commission 333 W. 7"' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Application for Permanent Spacing Exception for the West Foreland #2 Well ("WF #2") West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Forest Oil Corporation ("Forest"), as the current operator for the WF #2 well, by this letter hereby respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") complete the processing of the application submitted by Forest on August 8 (attached hereto) to issue an order exempting the West Foreland #2 well ("WF #2") from the drilling unit and spacing requirements of 20 AAC 25.055 as they pertain to the gas pool within the West Foreland Field. Forest was informed by the AOGCC that it would not schedule a hearing and process Forest's application until the Royalty Sharing Agreement between the affected owners and landowners was executed. Forest has just received today a letter from the Bureau of Land Management ("BLM") dated November 30, 2007 approving the execution of the West Foreland #2 Royalty .Sharing Agreement ("RSA") which included therewith a copy of the RSA executed by the BLM, both of which are attached hereto. With receipt of this letter from the BLM, the RSA has now been executed by all affected owners and landowners and copies of all signatures to the RSA are also attached hereto. With the completion and execution of the RSA, Forest, on behalf of the affected owners and landowners, also by this letter hereby respectfully requests approval from the AOGCC to, (1) disburse funds from the escrow account Forest established for the WF #2 well pursuant to Conservation Order 532, (2) ternunate the escrow account and, after termination of the escrow account, (3) make future royalty payments to all owners, landowners and royalty owners, including overriding royalty owners, from production from any sands stratigraphically shallower than the 9200-foot sand in the WF #2 Well pursuant to the terms of the RSA. Forest will provide at least 30 days notice to all royalty owners in both leases after Forest is advised by the AOGCC of the date and time of the hearing scheduled by the AOGCC. Besides contact personnel with the affected landowners changing, all information previously submitted to the AOGCC by Forest on July 2, 2004 in the original application for a Well Spacing Exception for the WF #2 Well (attached hereto), and all other information subsequently submitted by Forest to the AOGCC during the several hearings and meetings with the AOGCC regarding this matter, remain the same except for the fact that following submittal of the renewed application Page 1 of 2 • s submitted by Forest on August 8, 2007, Pacific Energy Alaska Operating LLC became the new owner of the two affected leases as a result of Forest selling all of its Alaska assets. The new owner is a parry and signatory to the RSA. If there are any questions, or should you need additional information, concerning this transmittal please contact me at (907) 868-2112. Sincerely yours, FOREST OIL CORPORATION 1 'ti ,~ `-'~ r,, - :' ~iJ~im Arlington Land Manager 4 Attachments: 1. BLM letter dated November 30, 2007 regarding Approval and Execution of West Foreland #2 Royalty Sharing Agreement; Royalty and Production Reporting Requirements 2. West Foreland #2 Well -West Foreland Field, Royalty Sharing Agreement w/ three separate signature pages executed by the three parties 3. Application letter to the AOGCC from Forest Oil Corporation dated August 8, 2007 4. Application letter to the AOGCC from Forest Oil Corporation dated July 2, 2004 cc: Alaska Deparhnent of Natural Resources, Division of Oil & Gas Bureau of Land Management Cook Inlet Region, Inc. Pacific Energy Alaska Operating LLC Paget oft • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Forest Oil Corporation ("Forest") for conversion to a Permanent Spacing Exception far the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532A. Forest, by letter dated December 7, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission"} on that same day, requests a permanent spacing exception to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the West Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. West Foreland #2 is a deviated well bore. The surface location of the well is 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well is 760 feet from the north line and 1,146 feet from the east line of 21, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for January 17, 2008 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7''' 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 December 28, 2007. 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 after January 10, 2008. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7`h Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on January 14, 2008 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the January 17, 2008 hearing. If you are a person with a disabil' y o may need special accommodations in order to comment or to attend th - i hear' g, please contact the Commission's Special Assistant Jody Colombie 795-1 ~ l~ ~1 F O R E S T O I L C O R P O R A T I O N •' 390 C>~~~~~s,~.e~ • ~~%rte X00 Y ~` /yrc~x~~~, C~~~r.s~~r 99.07 • ~90~~ ,'.~8-8600 • ~907~ ?58-8609 ~~fax~ December 7, 2007 ~ ~ ~ Mr. John Norman, Chair Ala~k~ Qil ~ ~~~ 0~~~ .1~a~trt~~ut~ Hand-Delivered Alaska Oil and Gas Conservation Commission l~r~har~g 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Application for Permanent Spacing Exception for the West Foreland #2 Well ("WF #2") West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Forest Oil Corporation ("Forest"), as the current operator for the WF #2 well, by this letter hereby respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") complete the processing of the application submitted by Forest on August 8 (attached hereto) to issue an order exempting the West Foreland #2 well ("WF #2") from the drilling unit and spacing requirements of 20 AAC 25.055 as they pertain to the gas pool within the West Foreland Field. Forest was informed by the AOGCC that it would not schedule a hearing and process Forest's application until the Royalty Sharing Agreement between the affected owners and landowners was executed. Forest has just received today a letter from the Bureau of Land Management ("BLM") dated November 30, 2007 approving the execution of the West Foreland #2 Royalty Sharing Agreement ("RSA") which included therewith a copy of the RSA executed by the BLM, both of which are attached hereto. With receipt of this letter from the BLM, the RSA has now been executed by all affected owners and landowners and copies of all signatures to the RSA are also attached hereto. With the completion and execution of the RSA, Forest, on behalf of the affected owners and landowners, also by this letter hereby respectfully requests approval from the AOGCC to, (1) disburse funds from the escrow account Forest established for the WF #2 well pursuant to Conservation Order 532, (2) terminate the escrow account and, after termination of the escrow account, (3) make future royalty payments to all owners, landowners and royalty owners, including overriding royalty owners, from production from any sands stratigraphically shallower than the 9200-foot sand in the WF #2 Well pursuant to the terms of the RSA. Forest will provide at least 30 days notice to all royalty owners in both leases after Forest is advised by the AOGCC of the date and time of the hearing scheduled by the AOGCC. Besides contact personnel with the affected landowners changing, all information previously submitted to the AOGCC by Forest on July 2, 2004 in the original application for a Well Spacing Exception for the WF #2 Well (attached hereto), and all other information subsequently submitted by Forest to the AOGCC during the several hearings and meetings with the AOGCC regarding this matter, remain the same except for the fact that following submittal of the renewed application Page 1 of 2 • • submitted by Forest on August 8, 2007, Pacific Energy Alaska Operating LLC became the new owner of the two affected leases as a result of Forest selling all of its Alaska assets. The new owner is a parry and signatory to the RSA. If there are any questions, or should you need additional information, concerning this transmittal please contact me at (907) 868-2112. Sincerely yours, FOREST OIL CORPORATION ~~ °°° rf un Arlington Land Manager 4 Attachments: 1. BLM letter dated November 30, 2007 regarding Approval and Execution of West Foreland #2 Royalty Sharing Agreement; Royalty and Production Reporting Requirements 2. West Foreland #2 Well -West Foreland Field, Royalty Sharing Agreement w/ three separate signature pages executed by the three parties 3. Application letter to the AOGCC from Forest Oil Corporation dated August 8, 2007 4. Application letter to the AOGCC from Forest Oil Corporation dated July 2, 2004 cc: Alaska Department of Natural Resources, Division of Oil & Gas Bureau of Land Management Cook Inlet Region, Inc. Pacific Energy Alaska Operating LLC Page 2 of 2 ~MEr+T of ty o~=~' '_ ° ~~~-tip United States Department of the Interior F ~' ~. BUREAU OF LAND MANAGEMENT ,~.~ PR~c~~~ ~gRCH 3 ~0~9 Alaska State Office Int~MEIf~IC~A 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer To: AA-87827 (AK932) November 30, 2007 Pacific Energy Alaska Operating LLC Jim Arlington, Landman 303 K Street, Suite 700 Anchorage, Alaska 99501 Alaska Department of Natural Resources Division of Oil and Gas Mr. Kevin Banks, Acting Director 550 West 7`h Avenue, Suite 800 Anchorage, Alaska 99501-3560 Subject: Approval and Execution of West Foreland #2 Royalty Sharing Agreement Royalty and Production Reporting Requirements Gentlemen: On September 17, 2004, West Foreland We112 (WF#2) was drilled on Federal Lease A-035017. The WF#2 has a surface hole location in SE 1/a SE 1/a of Section 21, Township 8 North, Range 14 West, Seward Meridian (SM), Federal Lease No. A-035017 and bottom hole location in NE'/a NEI/a of Section 21, Township 8 North, Range 14 West, SM, State Lease No. ADL-359112. The well was completed in December 2004 and established production from Tyonek Formation sands (perforation interval: 8,494' - 8,525' MD) with initial production rates of 9992 Mcf/d. Since the well is producing hydrocarbons from both the Federal and the State lease the attached royalty sharing agreement is necessary. The BLM, State of Alaska, and Forest Oil Corporation agree that, based upon geological and geophysical data, the equitable allocation to the two leases for production from gas bearing sands above the 9,200 ft sands is 90 % to the federal lease and 10 % to the state lease. Therefore, the Bureau of Land Management approves and executes the attached negotiated West Foreland Royalty #2 Sharing Agreement between the BLM, State of Alaska and Pacific Energy Alaska Operating LLC. • ~ 2 Agreement number AA-087827 should be used when reporting production and royalties under the WF #2 Royalty Sharing Agreement to the Minerals Management Service (Forms MMS-2014 and MMS-4054). The effective date of first production is December 12, 2004. Upon distribution of royalties from escrow, Pacific Energy Alaska Operating LLC (PEAO) must provide the BLM with documentation that outlines for each party (Cook Inlet Region Inc., State of Alaska, and United States of America) the total amount disbursed, principal amount of royalties, and the accrued interest amount based on the interest rate outlined in the agreement. In addition, PEAO must provide a copy of the spreadsheet utilized in calculating royalties due to the U.S.A. and Cook Inlet Region Inc. These documents should be similar to the documents provided in the disbursement of royalties under the West Foreland #1 Compensatory Royalty Agreement. Copies of the executed agreement are being distributed to the appropriate Federal and State agencies, and CIRI. Please advise all other interested parties of the execution of this agreement. Any party adversely affected by an instruction, order or decision issued under the regulation in 43 CFR 3105 may request an administrative review before the State Director under 43 CFR 3165.3 of this title. Any party adversely affected by a decision of the State Director after State Director review may appeal that decision as provided in 43 CFR Part 4. See DOI Form 1842-1 and 43 CFR Part 4, copies enclosed, for instructions. The appellant has the burden of showing that the decision appealed from is in error. Failure to file the notice of appeal with the Bureau within the time allowed will result in dismissal of the appeal. In order to avoid dismissal of the appeal, there must be strict compliance with the regulations. Sincerely, G~ / „~r Robert C. Fisk Chief, Branch of Energy 3 Attachments: 1. Executed West Foreland #2 Royalty Sharing Agreement (14pp) 2. DOI Form 1842-1 (lp) 3.43 CFR Part 4 (lp) cc: Cook Inlet Region, Inc. Ms. Kim Cunningham, Manager Lands and Resources P.O. Box 93330 Anchorage, Alaska 99509-3330 • • Minerals Management Service Attn: George Hutchison P.O. 5760, MS 357B 1 Denver, Colorado 80217-5760 Alaska Oil and Gas Conservation Commission 333 West 7th Ave # 100 Anchorage, Alaska 99501-3539 • • WEST FORELAND #2 WELL -WEST FORELAND FIELD ROYALTY SHARING AGREEMENT This Royalty Sharing Agreement (Agreement) is made and entered into on the dates set'forth below, but is effective as of December 14, 2004 (Effective Date), by and between the following parties and execution of this Agreement binds the parties to its terms: the United States of America, through the Secretary of the Interior, or his designated representative (United States), acting on its own behalf, and on behalf of Cook Inlet Region, Inc. (CIRI). 2. the State of Alaska, through the Commissioner, Department of Natural Resources, or his designated representative (State); and 3. Pacific Energy Alaska Operating LLC (formerly known as Forest Alaska Operating LLC), successor-in-interest to Forest Oil Corporation, (Lessee). The foregoing are referred to in this Agreement as "Party" or "Parties." RECITALS A. Federal oil and gas lease A-035017, comprised of a certain 857.14 acres, located in Sections 16, 21, 27, and 28, T8N, R14W, SM, Alaska, as depicted in Exhibit A (Federal Lease), became effective September 29, 1958. The United States leased to the Lessee's predecessors-in-interest the oil and gas interests in the lands described in the Federal Lease. Pacific Energy Alaska Operating LLC (formerly known as Forest Alaska Operating LLC), as successor, is the Lessee of the Federal Lease. B. Under Section 14(g) of the Alaska Native Claims Settlement Act (ANCSA), 43 USC § 1613(g), on October 26, 1982, CIRI acquired 807 acres of the Federal Lease located in Sections 16, 21, 27, and 28, T8N, R14W, SM, Alaska, and in Lot 1 of U.S. Survey 4524 (CIRI Acreage), as depicted in Exhibit A. The remainder of the Federal Lease is in federal ownership, and consists of U.S. Survey 4522, U.S. Survey 4523, and U.S. Survey 11865, which consists of 50.14 acres, (Federal Acreage), as depicted in Exhibit A. The CIRI Acreage remains subject to the Federal Lease, and administration of the CIRI Acreage was retained by the United States under ANCSA § 14(g), 43 USC § 1613(g). Under memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS), and copied to the Lessee and CIRI, the BLM outlined the mineral interest ownership split for rentals and royalties on Federal Lease as follows: "94.1503 percent paid directly to Cook Inlet Region, Incorporated (CIRI) and 5.8497 percent made payable to Minerals Management Service, Minerals Revenue Management...." Copies of the memoranda are attached in globo as Exhibit C. C. State oil and gas lease ADL-359112, comprised of a certain 2,155.00 acres, more or less, located in Sections 21, 22, 23, 27, and 34, T8N, R14W, SM, Alaska, as depicted in Exhibit B (State Lease), became effective December 1, 1983. In the State Lease, the State leased to the Lessee's predecessors-in- interest oil and gas interests in the lands described in the State Lease. Pacific Energy Alaska Operating LLC (formerly known as Forest Alaska Operating LLC), as successor, is the Lessee of the State Lease. The State Lease was committed to the West McArthur River Unit (WMRU) effective June 27, 1990. D. Certain parties hold overriding royalty interests in production from the Federal Lease (Federal ORRI), which were acquired from the Lessee's predecessors-in-interest. The Federal ORRIS are not Page 1 of 7 • • parties to this Agreement; E. Certain parties hold overriding royalty interests in production from the State Lease (State ORRI), which were acquired from the Lessee's predecessors-in-interest. The State ORRIS are not parties to this Agreement. F. The Parties, or their predecessors-in-interest, previously entered into an agreement April 20, 2001, and made effective as of April 1, 2001, entitled the "WEST FORELAND #1-WEST FORELAND FIELD COMPENSATORY ROYALTY AGREEMENT" (CRA) that established how production would be allocated and royalties paid regarding gas produced from two gas-bearing zones found in the West Foreland #1 gas well (WF #1) in the lower Tertiary--one at 9,502'-9,527' and one at 9,336'-9,352' and all gas-bearing strata in communication with those zones, defined in the CRA as "the Reservoir." G. In September 2004, Lessee commenced drilling the West Foreland #2 gas well (WF #2) from the Federal Lease on the same well pad as the currently producing WF #1, located in Section 21, Township 8 North, Range 14 West, Seward Meridian, Cook Inlet Basin, under Conservation Order No. 532 (CO 532) issued by the Alaska Oil and Gas Conservation Commission (Commission). The WF #2 was completed on December 14, 2004, with a bottomhole location in the State Lease, also in Section 21 Township 8 North, Range 14 West, Seward Meridian. The WF #2 was drilled to a total depth of 11,387'MD, 9,853'TVD. During the completion, several zones were tested and two productive sands were found in the well. The first sand, in the lower Tertiary, is the same 9,200-foot sand found in the WF #1 and is in communication with the Reservoir, defined in the CRA. The second sand is shallower than the 9,200-foot sand and is defined as the 8,500-foot sand. The gas-bearing zones encountered in the WF #2 above the 9,200-foot sands, and all gas-bearing strata in communication therewith, are jointly referred to hereinafter as "the West Foreland #2 RSA Reservoir." H. Lessee is producing natural gas from the WF #2 and potentially from additional wells drilled into sands shallower than the 9,200-foot sand, specifically including the 8,500-foot sand, with a bottomhole location on the Federal Lease or the State Lease. Gas and associated hydrocarbon liquids produced in sands shallower than the 9,200-foot sand, specifically including the 8,500-foot sand, by the WF #2 and by any other well with a bottomhole location in the West Foreland #2 RSA Reservoir on the State Lease or the Federal Lease is referred to as "Subject Gas." Lessee is currently using the Subject Gas produced from the WF #2 to provide fuel gas to the WMRU production facility and to the Trading Bay Production Facility for purposes of producing oil. However, Lessee reserves its rights to use Subject Gas for other purposes or to sell Subject Gas. I. The purpose of this Agreement is to make a final allocation of Subject Gas to the Federal Lease and the State Lease for the term of this Agreement, as defined in Paragraph 11, below, by establishing the relative percentages of Subject Gas located within the boundaries of the Federal Lease and the State Lease and applying those percentages to WF #2 production (Final Allocation). The Parties agree that sufficient data exists to enable the Parties to make a Final Allocation as of the date of execution of this Agreement by the Parties. J. The Parties intend that all royalty payments that were due on production of Subject Gas, but were escrowed under CO 532, will be released in compliance with the Final Allocation upon approval of the Commission under Paragraph 2, below. NOW THEREFORE, in consideration of the foregoing, the mutual promises and covenants contained in this Agreement, and the compensation to be paid the United States, CIRI, and the State by the Lessee, the United States (on its own behalf and on behalf of CIRI), the State, and Lessee hereby agree as follows. Page 2 of 7 • ~ 1. Final Allocation of Subject Gas to Federal Lease and to State Lease A. Final Allocation Percentages amone the Federal Lease and the State Lease The Parties agree that the Final Allocation of Subject Gas between the Federal Lease and the State Lease will be as follows: Ninety percent (90%) of the Subject Gas will be allocated to Federal Lease and ten percent (10%) of the Subject Gas will be allocated to State Lease. These allocation percentages were determined based on analysis of seismic information, production history and formation pressure data using accepted geological and petroleum engineering methods. B. Allocation by United States of Subject Gas Between Federal Acreage and CIRI Acreage The United States administers the Federal Lease, a portion of which is the Federal Acreage and a portion of which is the CIRI Acreage. This Agreement establishes a process to determine Final Allocation of Subject Gas and thereby allocate production of Subject Gas to the Federal Lease, but does not further establish a procedure to allocate production of Subject Gas between the Federal Acreage and the CIRI Acreage. The further allocation of production of Subject Gas between the Federal Acreage and to the CIRI Acreage within the Federal Lease, and the payments of escrowed funds due to that allocation, is exclusively within the control of the United States, and the means of determining any further allocation and payments are not further addressed by this Agreement. The United States shall bear sole responsibility for the allocation of production of Subject Gas between the Federal Acreage and the CIRI Acreage and the allocation of any payments. Lessee and the State shall have no responsibility or liability for allocation between the United States and CIRI. Unless and until the Lessee and the State are further notified by the United States, all Subject Gas allocated to the Federal Lease under the terms of this Agreement will be allocated by the direction of the United States 94.1503 percent to the CIRI Acreage, and 5.8497 percent to the Federal Acreage, and escrowed funds will be released under the directive of the United States contained in Exhibit C, namely "94.1503 percent [will be] paid directly to Cook Inlet Region, Incorporated (CIRI) and 5.8497 percent [will be] made payable to Minerals Management Service, Royalty Management Program...." 2. Modification of Final Allocation The Parties acknowledge and agree that the Final Allocation agreed to in this Agreement is subject to approval by the Commission under the provisions of CO 532 pertaining to the disbursement of funds from the escrow account. The Parties further agree that if the Commission, following the hearing prescribed in CO 532, revises the Final Allocation of Subject Gas between the Federal Lease and the State Lease provided for in this Agreement that this Agreement and the Final Allocation will be automatically amended and revised to incorporate the allocation percentages prescribed by the Commission in any lawful order issued by the Commission subject to approval by the parties. 3. Payment of Royalty on Final Allocation of Subject Gas Upon the Commission's approval of the Final Allocation and its authorization to release the escrowed funds, the Lessee shall first calculate and cause to be paid the royalty amount due to the United States, CIRI, and the State for Subject Gas occurring during the period from the Effective Date until release of Page 3 of 7 • • the escrowed funds. The calculation of the royalties and interest must be made under the Final Allocation and the applicable terms of the Federal Lease, the State Lease, the WMRU Agreement, and State and Federal laws and regulations. (Leases and Regulations). The calculation will be subject to subsequent audit and correction under the Leases and Regulations. Subject to the further terms of this Agreement, Lessee shall also calculate all royalty on Subject Gas due the Federal ORRIs and the State ORRIs, and the Parties agree, under the further terms of this Agreement, to cause to be released escrowed funds for that purpose. All remaining escrowed funds, if any, will be released to Lessee. 4. Release of Escrowed Funds The Parties agree to the release of the escrowed funds to the United States, CIRI, the State and the Lessee that correspond to the volumes of the Subject Gas from the WF #2 in accordance with the Final Allocation. Upon the Commission's approval of the Final Allocation, and after the release of escrowed funds in full payment of all royalty obligations under the Federal Lease and the State Lease, the Parties further agree to release all or a portion of escrowed funds to the Federal ORRIS and to the State ORRIS under: (i) a lawful final order of an agency or court having jurisdiction to approve this Agreement or the Final Allocation; or (ii) if there is no order and no pending proceeding to obtain an order, then under Lessee's request (a) upon receipt by Lessee of a division order signed by all the Federal ORRIS or State ORRIs, or (b) upon receipt of other proof of entitlement satisfactory to Lessee. The State and the United States will have no responsibility or liability for the release, or failure to release, the escrowed funds to the Federal ORRIs or State ORRIS under the Lessee's request. Lessee shall be entitled to the remainder of the escrowed funds, if any. 5. Rovaltv Value and Payments Payments of escrowed funds in accordance with this Agreement will constitute timely payment of royalty under the Leases and Regulations, so long as all royalty and interest obligations are paid in full as provided for in this Agreement. Royalty payments by the Lessee to the United States and the State must be consistent with the Leases and Regulations, including all allowable deductions, and will not be limited to the escrowed funds, or by the release of all or a portion of the escrowed funds. [For purposes of determining the state royalty, gas and associated hydrocarbon liquids produced in sands shallower than the 9,200-foot sand, specifically including the 8,500-foot sand, by WF #2 and by any other well with a bottomhole location in the West Foreland #2 RSA Reservoir on the State Lease or the Federal Lease, are included in and are a part of the West Foreland Field identified in AS 38.05.180(f)(5)(F).] 6. Interest Obligations Interest on the royalty due from Lessee to the State and the United States for the Final Allocation of Subject Gas will accrue on escrowed funds paid to the State and the United States at a variable annual rate equal to 1.25 percent, plus the prime rate as announced from time to time by the Bank of America, San Francisco, California, calculated from the last day of the calendar month following the month in which the Subject Gas was produced until the date on which the escrowed funds are distributed. Interest earned on the portion of the escrowed funds released to the Lessee or to the Federal ORRIS and State ORRIS will be distributed in the same percentage as the escrowed funds, and no further interest will be due on any of the escrowed funds or the royalty payments paid to the Lessee or the Federal ORRIS or the State ORRIS. The final obligation of Lessee to pay interest to the United States and the State will be consistent Page 4 of 7 • • with the Leases and Regulations, including all allowable deductions, and shall not be limited to the escrowed funds, or by the release of all or a portion of the escrowed funds. 7. Revised Production and Rovalty Reports after Final Allocation The Lessee shall file with the State and the United States, respectively, revised State operator and royalty reports and MMS Oil and Gas Operations Report (OGOR Form MMS-4054) and Report of Sales and Royalty Remittance (MMS-2014), in compliance with the Leases and Regulations for all Subject Gas produced prior to payment of the escrowed funds. The Lessee is only required to submit Payment Summary and Royalty Reports to the State if royalty payments are due to the State. 8. Subject Gas Subject Gas will be allocated between the State Lease and the Federal Lease in accordance with the Final Allocation. 9. Oblieations Relative to Drainage and Compensatorv Roval This Agreement, and the Final Allocation of Subject Gas under this Agreement, satisfies, resolves and settles any and all obligations of the Lessee arising with respect to the Federal Lease or the State Lease or the WMRU relative to drainage of Subject Gas through wells on the Federal Lease or the State Lease, including without limitation, any obligation Lessee might otherwise have to pay compensatory royalties or drill offset wells on the Federal Lease or the State Lease to protect the lease from drainage occurring as a result of production from the Federal Lease or the State Lease. 10. Operations on Federal Lease Operations on the Federal Lease will be conducted in accordance with the Federal Lease and applicable laws and regulations governing the removal of oil and gas from lands owned by the United States or CIRI. Nothing contained in this Agreement will be deemed to give the State authority it does not already have, if any, to order that any well on Federal lands or on the Federal Lease be shut-in. 11. Term of Agreement This Agreement will become effective when it is fully executed by the United States (in a manner binding the BLM and CIRI), the State, and Lessee, and will apply to all production of Subject Gas from the State Lease and the Federal Lease beginning on the Effective Date. This Agreement will continue in full force and effect until: (1) all escrowed funds have been paid out of escrow under the Final Allocation and the provisions of this Agreement; (2) all royalties have been paid on Subject Gas produced under the Leases and Regulations; and (3) the Federal and the State Leases have terminated. 12. No Benefit to Members of Congress or Federal Agents or Employees No member of, or delegate to Congress, or Resident Commissioner after his election or appointment, or either before or after he has qualified and during his continuance in office, and no officer, agent or employee of the Department of the Interior shall be admitted to any share or part in this Agreement or derive any benefit that may arise from this Agreement and the provisions of Section 3741 of the Revised Statues of the United States, as amended (41 U.S.C. 22), and Sections 431, 432, and 433, Title 18, U.S. Code, relating to contracts, enter into and form a part of this Agreement, so far as they apply. Page 5 of 7 • • 13. Nondiscrimination In connection with the performance or work under this Agreement, Lessee agrees to comply with all of the provisions of Section 202 (1} to (7) inclusive, of Executive Order 11246 (30 F.R. 12319), which are incorporated into this Agreement by reference. 14. Effect of Agreement This Agreement applies only to production of Subject Gas occurring on or after the Effective Date, and affects only the Federal Lease, the State Lease, and any other lease that becomes subject to this Agreement. This Agreement is not to be construed as affecting in any manner any right, title or interest owned or claimed by the United States, CIRI, the State, or Lessee in and to any other land, and is not intended to affect any rights of any person or entity not a Party. 15. GENERAL PROVISIONS A. Waiver. The failure of any Party to insist upon the strict performance of any provision of this Agreement or to exercise any right, power or remedy upon a breach of this Agreement, will not constitute a waiver by the Party of any provision or right, power or remedy of this Agreement. B. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, and all of which, taken together, will constitute a single agreement. This Agreement will not become binding upon any Party unless and until all Parties have executed at least one counterpart of this Agreement. C. Further Actions. The Parties agree to take any and all actions and execute, acknowledge and deliver any and all documents reasonably necessary to carry out the purposes of this Agreement. D. Modification of Agreement. This Agreement may be modified only by a written instrument duly executed by all of the Parties. E. Severability. If any provision or application of this Agreement shall be found to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement and any other application of that provision will not be affected. F. Binding Effect. The rights, obligations and liabilities set out in or arising under this Agreement will extend to, be binding upon, and inure to the benefit of the Parties and their respective successors and assigns. G. Interpretation of the Agreement. All Parties to this Agreement have consulted their counsel and had a full and unrestricted right to examine this Agreement prior to executing it and accordingly this Agreement will not be construed against the drafting Party. H. Savings Clause. Except as expressly set out in this Agreement, nothing in this Agreement will affect the rights or obligations of the Parties under the Leases and Regulations. I. No Third Party Beneficiaries. This Agreement is intended to inure to the sole and exclusive benefit of the Parties, and is not intended to, and will not be construed to, confer upon any third party, any rights or remedies, including without limitation any right to enforce any of its terms. Page 6 of 7 • • Lessee has caused this Agreement to be executed in its corporate name by its proper, duly authorized officials; the United States has caused this Agreement to be executed by its Secretary of the Interior or his designated representative, pursuant to the authority provided by the Mineral Leasing Act of 1920, as amended, 30 U.S.C. § 181 et seq., and 43 C.F.R. § 3105.2, and in so doing has determined that the Agreement is in the public interest; and the State has caused this Agreement to be executed by its Department of Natural Resources Commissioner or his designated representative, pursuant to the authority provided by Alaska Statute sections 38.05.020(b) and 38.05.180(s), and in doing so has determined that the Agreement is in the public interest; all on the dates shown below. THE UNITED STATES OF AMERICA DEPARTMENT OF THE INTERIOR ON ITS OWN BEHALF AND ON BEHALF OF THE BUREAU OF LAND MANAGEMENT AND COOK INLET REGION, INC. By: Its: Chief, Energy Branch, Alaska State Office Bureau of Land Management United States Department of the Interior Date: STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES By: Its: Director. Division of Oil and Gas Date: PACIFIC ENERGY ALASKA OPERATING LLC (FORMERLY KNOWN AS FOREST ALASKA OPERATING LLC) By: Its: EXHIBITS: A. Map of Federal Lease, showing CIRI acreage and federal acreage B. Map of State Lease C. Memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS) Page 7 of 7 C7 Lessee has caused this Agreement to be executed in its corporate name. by its.. proper, duly authorized officials; the United States has caused this Agreement to be executed by its Secretary of the Interior or his designated representative, pursuant to the authority provided by the Mineral. Leasing Act of 1920, as amended, 30 U.S.C. § 181. et seq., and 43 C.F.R. § 3105.2, and in so doing has determined that the Agreement is in the public interest; and the :State has caused this Agreement to be executed by its Department of Natural Resources Commissioner or his designated representative, pursuant - to the authority provided by Alaska Statute sections 38.05.020(b) and 38.OS.180(s), and in doing so has determined that the Agreement is in the public interest; all on the dates shown below. THE UNITED STATES OF AMERICA DEPARTMENT OF THE INTERIOR ON ITS OWN BEHALF AND ON BEHALF OF THE BUREAU OF LAND MANAGEMENT AND COOK INLET REGION, INC. Its: Chief, Energy Branch, Alaska State Office Bureau of Land Management United States Department of the Interior. Date:. //~t'~ 7 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES ay: Its:. Director Division of Oil and Gas PACIFIC ENERGY ALASKA OPERATING LLC (FORMERLY KNOWN AS FOREST ALASKA OPERATING LLC) By: Date: EXHIBITS: A. Map of Federal. Lease, showing. CIRI acreage and federal acreage B. Map of State Lease. C. Memoranda dated August 22 2003, and November 26, 2003, from the Bureau. of Land Management (BLM) to the Minerals Management. Service (MMS) Page 7 of 7 • • Lessee has caused this Agreement to be executed in its corporate name by its proper, duly authorized officials; the United States has caused this Agreement to be executed by its Secretary of the Interior or his designated representative, pursuant to the authority provided by the Mineral Leasing Act of 1920, as amended, 30 U.S,C. § 181 et seq., and 43 C.F.R. § 31.05.2, and in so doing. has determined that the .Agreement is in the public interest; and the State has caused this Agreement to be executed by its Department of Natural Resources Corrunissioner or his designated representative, pursuant to the authority provided by Alaska Statute sections 38.05.020(b) and 38.OS.1$0(s), and in doing so has determined that the Agreement is in the public .interest; all on the dates shown below. THE UNITED STATES OF AMERICA. DEPARTMENT OF THE INTERIOR ON ITS OWN BEHALF AND ON BEHALF OF THE BUREAU OF LAND MANAGEMENT AND COOK INLET REGION, INC. By: Its: Chief. Energy Branch. Alaska State Office Bureau of Land Management United States Department of the. Interior Date: STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCE Its: Director Division of Oii and Gas Date: ~~ .~:,~ ~~=~.~ ~ ~ ~C~~`~ PACIFIC ENERGY ALASKA OPERATING LLC (FORMERLY KNOWN AS FOREST ALASKA OPERATING LLC) By: Date: EXHIBITS:. A. Map of Federal Lease, showing CIRI acreage and federal acreage B. Map of State Lease C. Memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS) Page 7 of 7 • • Lessee has caused this Agreement to be executed in its corporate name by its proper, duly authorized officials; the United States has caused this Agreement to be executed by its Secretary of the Interior or his designated representative, pursuant to the authority provided by the Mineral .Leasing .Act of 1920, as amended, 30 U.S.C. § 181 et seq., and 43 C.F.R. § 3105.2, and in so doing has determined that the Agreement is in the public interest; and the State has caused this Agreement to be executed by its Department of Natural Resources Commissioner or his designated representative, pursuant to the authority provided by Alaska Statute sections 38.05.020(6} and 38.05.180(s), and in doing so has determined that the Agreement is in the public interest; all on the dates shown below. THE UNITED STATES OF AMERICA DEPARTMENT OF THE INTERIOR ON ITS OWN BEIIALF AND ON BEHALF OF THE BUREAU OF LAND MANAGEMENT AND COOK INLET REGION, iNC. Its: Chief, EnerQV Branch. Alaska State Office Bureau of Land Management United States Department of the Interior Date: STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES By: Its: .Director Division of Oil and Gas Date: PACIFIC ENERGY ALASKA OPERATING LLC (FORMERLY KNOWN AS FOREST ALASKA OPERATING LLC) By~ V ._-.____~ °.- Its: ~"~~ ~ t,r.11 Date: ~' ~Z '2 , ~"'~ EXHIBITS: A. Map of Federal Lease, showing CIRI acreage and federal acreage B. Map of State Lease C. Memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS) Page 7 of 7 • • EXHIBIT "A" WEST FORELAND #2 WELL -WEST FORELAND FIELD ROYALTY SHARING AGREEMENT Federal oil and gas lease A-035017, comprised of a certain 857.14 acres, located in Sections 16, 21, 27, and 28, T8N, R14W, SM, Alaska, effective September 29, 1958, is depicted in the map below (Federal Lease). 17 i I ! ~ 15 WF-2 ~ State Lease uss a522 ~ ADL 359112 ~____.__ USS 118651 20 21 i ~`~ uss 4523 ~. __ 1~- 22 ! WF-1~ USS 4524 LOT 1 29 ~ 28 ~ 27 Federal Lease A-035017 i Cook Inlet Shoreline • • EXHIBIT "B" WEST FORELAND #2 WELL -WEST FORELAND FIELD ROYALTY SHARING AGREEMENT State oil and gas lease ADL-359112, comprised of a certain 2,155.00 acres, more or less, located in Sections 21, 22, 23, 27, and 34, T8N, R14W, SM, Alaska, effective December 1, 1983, is depicted in the map below (State Lease). 1 ~WF-2 E USS 522 USSI11865 2~ USSi4523 . _ _ ..~~. WF-1 y+.~ h~ USS 4523 15 ~ 14 13 State Lease ~ ADL 359112 22 23 24 Federal Lease 27 A-035017 26 j 25 33 34 Cook Inlet Shoreline 4 3 35 I 36 1 2 - 1-- --- • EXHIBIT "C" • WEST FORELAND #2 WELL -WEST FORELAND FIELD ROYALTY SHARING AGREEMENT Copies of memoranda dated August 22, 2003, and November 26, 2003, from the Bureau of Land Management (BLM) to the Minerals Management Service (MMS), and copied to the Lessee and Cook Inlet Region, Incorporated (GIRT), are attached hereto in the following four (4) pages in which the BLM outlines the mineral interest ownership split for rentals and royalties on federal lease A-035017 as follows: "94.1503 percent paid directly to Cook Inlet Region, Incorporated (GIRT) and 5.8497 percent made payable to Minerals Management Service, Minerals Revenue Management...." . • • FEB-14-2007 WED 10;48 AN BLN ENERGY & MINERALS FAX N0. 907 267 1304 P, 01/04 q ~ United States Department of the Interior A BUREAll OF I,AN17 MANACrBMENT ,~„ 1 BRANCH OF FNERCyY 6881 ABBOTT LbOp ROAD ANC1iORAGL. ALAST{A 995D7-2599 FAX from DIVISION OF ENERGY AND SOLID MINERALS MINERAL LAW • • FEB-14-2007 WED 10;48 AN BLN ENERGY & MINERALS FAX N0. 907 267 1304 P, 02/04 ~. United States Department of the Xnteriar ' St1t2EAU OF LAND MAI~TAGF.M>:NT Catnpbe117'ractFacllity °~ 6881 Abbott Loop Road Anchorage, Alaska 99507.2599 hup:llwww.ak.blm-gov 3160 (AK441) A-o35o17 AUf 2 2 2003 ~E~MIG~ Memorandum To: MMS, Minerals Revenue Management, Denver From: Land Law ~aminer, Branch of >?nergy Subject: Compensatory Royalty Agreement, West Foreland Field, We11 WF#1 Enclosed is the Compensatory Royalty Agreement.(CRA) for the'West Foreland (W~ Field and letters from Forest Oil Company on the Royalty Agreement Final Allocation of Reserves and Production. West Foreland Well #1 on Federal Lease A-035017 under the CRA has been producing now far over 2 years. Per the CRA, royalty monies have been placed into escrow by Forest oil while "the iJnited States, the State and Lessee" meet and agree on the allocation of these funds. The above parties have agreed on the allocation break down and are waiting the final decision from the Alaska Oil and Gas Conservation Commission (AOGCC) based on a Hearing held August 14, 2003. When a decision record has been issued by the AQGCC, we will send you a copy for administration purposes. Eelow is the allocation break down of royalties agreed upon by the above parties: Calculation of Ro alt F'ercenta es State of Alaska ADL359112 allocated 42% of Gross Gas Production United States lease A-(135017 allocated 58~ of Gross Gas Production Of that 58% the United States Receives 12.5% Royalty, in which the Bureau of Land 141anage-nent owns 5,$497% card Cook Inlet Region, Inc. owns 94.15039'0 United States Receives 58~a x 12.5% x 5.8497% = 0.42419'0 of Gross Royalty Ma~ties (Payable from Forest Oil Company to the Mineral Management Service per CRA) Cook Cnlet Region, Inc. Receives 5$~n x 12.5° x 94.IS03°k = 6.8259°10 of Gross Royalty Monies (Payable direct from )~orest Oil Company to Cook Inlet Region, Inc. per CRA) • FEB-14-2007 WED 10 49 AM BLM ENERGY & MINERALS FAX N0. 907 267 1304 P. 03/04 h r. ~4 v • Y -tiJ '~ f* if you have any questions please contact me at 907-2b7-1212 or Steve Martinez, petroleum ingineer at 907-2b7-12$3. Melissa Ainsworth cc: Tim Arlington, Forest Oil Company Chris Ruff, State of Alaska Department of Natural Resources Teresa Ressler, Cook Inlet Region, Inc. AK941:mainsworth:mka:8122/03:x212: 1CampRoyaltyAgreeWestForlandl.doc FEB-14-2007 WED 10; 49 AN BLN ENERGY & MINERALS FAX N0, 907 267 1304 P, 04/04 \_ . United States Department of the Interior' BUREAl7 OF LAND MANAGEMENT ~ .s Campbell Tract Facility 688 t Ablx>tt Loop Road Anchorage, Alaska 99507-2599 httpa/www.ak.blm.gov 3160 (AK040) A-035017 Memorandum '~~~~-`~ ~'• " ' ' ' To: MMS, Minerals Revenue Management, Denver From: Land law Examiner, Mineral Law, Alaska Subject: Compensatory Royalty Agreement, West Foreland Field, Well WF#1 As referenced in cotxespondence dated August 22, 2003, enclosed is Alaska Oil and Gas Commission Conservation Order No. 450B approving the allocation of production from the West Foreland No. 1 well. The well is located on Federal Lease A-035017 and is draining hydrocarbons from Alaska State l:,ease ADL359112. The allocation was agreed to by the Bureau of Land Management and State of Alaska and is subject to a Compensatory loyalty Agreement. The order by the Commission allows for disbursements of funds heretofore deposited in escrow by the operator of the subject well, Forest Oil Company. The details of the allocation are as follows: 42°k of production is allocated to Alaska State Lease AY)G359112. 58% of production is allocated to Federal Lease A-0350.17. Cook Inlet Region Incorporated (C1R1) owns 94.1503% of the royalty interest in Federal Tease A-035017. The United States owns 5.8497% of the royalty interest in Federal Lease A-035017. Forest ail Company makes royalty payments directly to the United States in the amount due the United States and directly to C1lT in the amount due C1RI, If you have any questions, please contact Melissa Ainsworth at (907) 267-1212 or Steve Martinez at (907) 267-12$3. ._ ._~ eltssa Ainsworth Enclosure 1- AOGCC Conservation order No. 4SOB (app) cc: Jim Arlington,l~orest Oil Company Teresa Ressler, Cook Tnlet Region, lnc. AK940:mainsworth:mka:11/7/03:x212:1A-035017 West Foreland Memo MMS ~ F O R E S T O 1 L C O R P O R A T I O N .~'~n ~r'~~n~~r . r~ 4;~,r.~ 7~n C?~er.~ry~~a~e, C~.~i lrt~~r .J.(I50! (9n7) w~'.~,5-sGDO • (.9Q7~ :?.i~5'-cS'GIJ~' (G~1%r:rJ August 8, ZQ07 a ~- a ~, ~ ~ ~# . ~" .. '~:~~ Mr. 7ahn Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. ?~` Avenue, Suite 100 Anchorage, Alaska 99501-3539 Hand Deli~~erect ~ "• . ~ ~~ :~ Re: Application for either a conversion to a Permanent Spacing Exception or, alternatively, an Extension of Temporary Well Spacing Exerrtption forthe West Foreland.#2 Well ("WF #2") Conservation Order Na. 53:2; West Foreland Field; West Foreland Undefined Gas Pool Dear Conunissioner Norman: In order to accommodate scheduling requirements and in an effort to expedite disbursement of the escrowed funds established pursuant to Conservation Order No. 532, Forest hereby submits by this letter an application for the WF #2 well for a permanent spacing exception to the provisions of 20 AAC 25.OSS or, alternatively, an additional. extension of the temporary exemption requested by Forest irr its June 8, 2007 application. Forest wishes to advise that white the landowners have yet to approve a Royalty Sharing Agreement ("RSA"), the RSA submitted by Forest on February 1, 2007, and returned an July I7, 2007 as a pdf marked up by both BLM and DNR, is wholly acceptable to Forest. Forest understands that it has provided the BLM and DNR all nformafion requested by either party to complete the RSA. Forest stands :ready to provide any other information.necessary to facilitate timely completion and execution of the RSA by al! parties and any additional data the AOGCC deems necessary to approve disbursement afthe escrowed funds to the royalty owners. If there are any questions, or should you nod additional information, concerning this application please contact me at (907) 868-2I 12. Sincerely yours, FORIGST OIL CORPORATION t --~.. Jim Arlington ~ Land Manager cc: Cook Inlet Region, Inc. Bureau of Land Management Alaska Department of Natural Resources, Division of Oil & Gas Page. ! of I • • F~ O R E S T O 1 L C© R P CJ R A T I O N •~ •3f11 ~ /~~c July 2, 2004 Mr. Robert Crandall. Hand-Delivered Alaska Oil and Gas Conservation Commission 333 W. 7'~ Avenue, Suite l00 Anchorage, Alaska 99.501-3539 Re: Application for Well Spacing Exemption, West Foreland #2 ("WF #2'~ Well 'Vest Foreland Field; A-035019, AD1r359112 Dear 141r. Crandall: Forest Oil Corporation {"Forest"} by this letter hereby submits this application for approval to the Alaska Oil and Gas Conservation Corrunission {"AOGCC"} and respectfully requests the AOGCC to issue an order exempting the West Foreland #2 well ("WF #2"} from the drilling unit acrd spacing requirements of 20 AAC 25.055 as they pertain to the gas poet within the West Foreland Field. The West Foreland Field is defined by a discovery gas well, the VYF #l, that was drilled as a straight hale an federal lease A-035017 in Section 21, Township 8 North, Range 14 West, Seward Meridian and. eorr~rteted on March 29, 1962 by Pan American Petroleum Corporation. Tire WF # 1 is the vnly well in the West Foreland Field and has a surface location on the federal lease of 879.5` FSI_, 670.5` FEL, Section 2l, T08N, RI4W, Seward Meridian. The West Fvreland Field gas reserves are contained within two ail and gas Teases: { 1) federal lease A-035017 and, (2) State of Alaska tease ADL-3591 12 State of Alaska lease ADL-359112 is gresendy one of two State of Alaska leases committed to the West McArthur River Unit {"WMRU"} but has no producing wells located within its boundaries. All WMRU producing wells are oil wefts Tocated within State of Alaska Lease ADL-3591 11. Federal tease A-035017 is not committed to any state or federal. unit and there are no plans to include this federal tease in any new or existing unit. Both leases are physically located in the Gook Irilet area near the West Foreland peninsula, approximately four miles south of the Trading IIay Unit Productive Facilities. Tire surface estate within the boundaries of the federal lease is of mixed ownership between Salamatof Native Association, Inc., Alaska Natives and private individuals. The WF #1 pad is located oa land owned by Salarrratof Native Association, Inc. Forest has a comprehensive surface use agreement with Salamatof Native Association, Inc. that witl allow use of this land to expand the WF #Z well pad, if necessary, to drill the WF #2. The WF #1 was drilled by the Pan American Corporation to a total depth of 13,500' MD & TVD in 2962. During the completion eight intervals were drill stem tested but only hvo sands demonstrated productive potential. Bath sands are gas sands in the lower Tyanek interval; an upper sand, at 9334-50 ft MD {the "9,200' Sand', and a lower sand, at 9502-22 ft ltiiD (tare "9,400` Sand"). In 2984, an extended flaw test of the 9,200' Sand produced 52.$ MMSCF of gas. The lower zone was plugged back and currently only the upper zone is open in the WF ##t wellbore. Ta drill out the bridge plug in order to produce ttre 9,400` sand from the WF #1 would jeopardize production from the entire WF #1 wellbore. The WF #1 was shut-in until April 2001 when Forest, the BLM and the Alaska Department of Natural Resources {"DNR"} executed a Canrpensatory Royalty Agreement ("CRA"} to allocate production from the WF #1 between the federal lease and the State of Alaska lease. The CRA was required by the AOCiCC pursu<wt to Conservation Orders No. 450 and 450-A grantrng a pemranent exception to the spacing requirerr~zrts of 20 AAC 25.055 to allow production of gas from the WF #1 from any interval not deeper tlrarr 9,527' MD. The temas of the CRA and Conservation Order Na. 4SOB established an allocation of 5$%° to the federal lease and 42°lo to the `State of Alaska lease of any gas production frvm any interval not deeper than 9,527' MD in the WF #I. This exception to the statewide spacing regrrlativns is sought because the propvsed bottomhole location of the WF #2 may be within T,500' of a property line with a different landtrwner (i:e. the federal lease) and within 3,000' of a well capable of producing from ttre sarrre pool {i.e. the WF #1). This exception to the statewide spacing regulationsis necessary to aptitnize gas recovery firm the Tyonek formation in the West Foreland Field. The proposed battomhote location for the WF #2 will Page t ot2 • • I-f -,~~ip °t :,~'Iti t~rr_n ._' `1 :zr:i' near tl . ~rtxrrtt:n l~aSc: 1tnc, .>c~Jarltitrt°, the ~fz:te e~f ~1iaSl;t1 ;xncl t.clc°ral lca,es. "lie. ~_ ~ ~r, .,rz7ir~le..7 ~ _:.~- ~?~e 1rTF #21 ~ -~t~ 9 ~'(}~' and ~,~00' ~~a~~5 ~,Ynli to u~ S~ctis~r Zt. -I !',8l`d, T~I~Kr, S~~~rd ~fe r'aian ~~i1~3 rast ti~f the :_ : n h:a"~~ lxrtzzYda , as in°41t'atcd c z: xJse enr°lc~~c,zi rr~Ix. ~~~ 1 ,xfllcc (rizt~zbot 1 t< , F3eeause the r ?r:~ is }.r ; . ' to be ctritled into al:c } n ~,i the : ~~r t~~rtiat-y }Jr€>xtl~ti`'e irlt~°r~°a.~ ii~i~ncl ir€ #l1c' WF #l, 1t r, e~Ix~:~tec -:_ t t`: A~xC'C rill srlsrt zcyl~ire a C`l,_~ t~"r ~x, erter;tl into alttf ck:ea,teil F,g Fori'St. tiIr f~L.A,4 cond. i?'~~a ~? a4 t'ti'i°.}t:zts_i' ~)t'ti }:; ~. 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(i ~'`~' _, iit't. .K:t-tittetl CC±}~if'S f)f ll"ttti 1S(71?13c.atgCi:. ;nti,lu(itna Ill Crll[~~~177~5" If#?rec~; : ~ ~n~; qutst~z~r77 ~,r " ~ ;~id ;vz>u ntzc~cl a~lciaictr~Yl 7~.lic~r~z.lU>~, ~ 1-a~e; coutdtct rte nt r tirr') 68 2I 12. sincerely youzs, '`~~.°t ;~~ t~azt~47.. _ ,<r ~.;;tuiMana_ ~"~ ~ncl~es ~'~: ~ l~l AT71~i2. ~:~ <<~ • Z`~'i~i~;<" ,'~I:~,~`i~:i (13t, -~t'tit} (:.tS C,`E~"'~S~'~2~ il'~`~~~`'v t'6);i•'?~i~'i~y}~~"ti '~: fort; r12=:, 1a :sK;l ~7i'; <:ra~~ (,;tt~> CQr ;z ,'aiiirs~ t'tzlsnnr~,sicin } n the 1~iatt':r tat t3!t~ :~~z}~li;.:rt~)~ri «t ) ~'}+;1~}i''I£`.~'t")i'ttY~ L1F iE'AC7"!`j :1~3~) {}test +:3it d 'nt{?~;>rat`~7t7 ~c~r E ~t } ; ivirTg r~xrtlr~)tac:lzi ) Ai"+~'iI~A,VI'~' tJI~":iI1~~ ,A,RI.I'd(.r 1`t) a.=ui r',cep'ri~n, to t.}~C ~rrwi~[ ~S pe~:t~117k1~g tp T)tl}?ink; l ?rlr+,. ~ i~ld ~L ~~(} ;;r~ , ~.~ };utsuarat to } 2{l Ar1C ~ ; i } •; ~ 3zm A r},ilt<~i~,n, i~:_ ° ~ , 'irs+ .?>IIy ; ~,~~~ I tl~TUn ):r2t}l, deposes and states as foilo~~rs: ~~' 1711tT2t .I~~rt ,`»,j~~`~'O1°1F. ~ aXTS'oVer ~ ~ `apt i. flip and il~tii~' personaliczao~vled~e C1i ~2t' L. ~ ::TS? t}?;' :~ ~v~~%ili3s?CI ~~I iilt. q}?tiltf?t, ~~Z~SY ~l~ ~~?T~?<?SiitliCt+,~{~~'i? i~1. } u,l, t:ti;? f; ,.;'fit' I?il€} i,ity 1I):`taT ti1~:~1` a,Ont"A~PT1l.T1~ ti1C ~'3:U r.Sza~trl.e"i~°C~ t'.7d1 t}fe 1i?~ll, <tt2t)li,~" i~"crest ~1~ ~,i,i~~()+.:litti:7 ii?? ! }~ :~;~ L.Ir:;'wk'~tlt~t}oAl and eYGE;~tloll t4J t}1e prCti:'~1E7nS per~;~tl"title t;) l~ll:llit, titt;fl ;Ell i ;.•t~~l s;) c ,~_> }~u_i:.a=l, r ) :~..'~~ ~~' ~.:i.~~ a::a they pertaixt t€~ tlleproposed. driitin~; zrftkZS West f•c'rt•land ~r.` " "'S 'S~ ~"4i. k, ~ iI ~ i L ;5.>.., : <~:S' i.'T12A`EI)~ and have tetileuled file completed application Stl~niil?t_v i)y ~'l31'r'St I ,~ c,; ~r., "terriz a+~.~ ;~. hi: t, ;~.A: ~s o~20 AA~25:C "i cos the ctrtll'ingofThe ~Ts~est t~€~I ~l ~n~i :k~. ~~e2; ,~~ rltt: - ~ ~'~),r°~,71<ti ~.`tt:~~~ ,1n_3 :}~. V ;IS` i 1 (}A$'t'~~~ ~le ~3~.tS C+"i ~: ,-'~a t~7f:T~"In,~.'r~ tYLi4 t© ~lf' ~.7U3t LI i;s">" ~':IIt)l:~f;{[<7{_, wi, ~lrl'.F^^I~.~:' ~t' <~~ ;`~,i;ilTlt~2S1c~~7S~'n+.:~C1S~~"~v,V2laxt}ICiip~3~IC.~t1t3T18ilC~~SSC'T~:~a;t}I 'f~CIFT~:'c'I}T' porfz'zzy the 1' I~4n;:llt ;31tti rc: . rr ) ecl c! ~3. } t~l, ,~ ;-, '. ~ ~.~ ~~}3;r~tflr of any WeIIS t4ltllzzl ~,~~}~ ~f:~t O~1I1~ S'4f;}.~ ~Oi S:}ll:`}'i E},r~ C•ht.i'(3tIC?il ez3~iiaits:^ti it t~~~ ?~.''}it.~ ~:, !7~t. Ern u' _~~ u!; ~, 2t?i?a, ~I:rsuatlt t~??O:4~t~';?~.~~5(tT~, I r ~ ~ ~.?~e _rc}Il~~rt?~~.c~ti~,e ctf}~~rest,9s .~.~^754X'<Itit>r, Snt tall ~:xeat ' - )tr~l I}.: ~-r~vistons ~~t 2~ SAC .' ~.~_~S }}, t:..1ir: ," i~} t}tt; ,t~~,iit tctic~)r°zb}' ccr !)~~~d p rllall t0 (48A° ~ I<'5 C f d~} },iJ} (y, }19YI ",U hr1='.I'.`s <IIli I7~t'fill(JI5 Oi d}~ }J l~tl~lUrt1 'S s It}1,'1 _~ (1{~''~~~z t32 ~YG paopose(1 's.'~]} tat.;ztlo-°. ;°~~~ t4'e :3t43.;}IE'C} ?.~• li,t ~.. Fwxlti~it".=~" to this afft,}~t~i2_ tl~ ,t ri?'»ti atit4 s~: ~ r=`l t~ J~,~_I'~ ~, 2t)~>. .. J lnl l~t']zn ~T~:~ 1~ 0}a ~~~ a SS: ~~~..eh'..~~ 1t71.)It_°tr~L ~J~ ~~i ~'~ ~ i ,_.I, this ~r _ dory of '~~<y ~~,~)•t, bzt'rrre e, file undersigned, a T~Totary }:'u~}~ d77}°; c_~m7172,su~1>cd rttit} sworn, ~~+ L.lt::i~ 1.121 t~`~.t`~1ngtUi2, ~7t'6 ~)173~}'." ]CIAALYIl (( ITiL, tiY ~74' thA' p('TSDSI "SV~tt)SC II II?T?t: S. i!}`S~~.~~ (~ `. 4, '~IS~":1T1 t~lL `~~ erifit.a?.on of I+aGts ~(3 .,4~4tIt'it. ~`~ iY~,t,~ r~,y) airlr3 7 ut ~,f'~_~ial se32~~~ ,a ~ f ~ ~1 ' , ~~1~ ~ ~ ..~ Un #1}3u~~'y ,,~ ~ ~ ~x`Cf~~s ~~' ~. t~~l~ C'c;~xu ier, i ~} arc°s: _____, ~- --mot ~; w . .... ~. `^- i,',~,y ~ ~ ~ , °,~.'~'~ ~.y~>~ ~:r l~~ y .~1~, ,~f Ai i~~~ • • ~:x~~~:sz~r ~<~„ °r~ r'~.l•.'~l~E~:~~~~+.~~'4~i ill>.:~_I."'vc~-~~c:~~`~'ti n the Mattes of i£tc ~1r}>I - ~':: "forest Oil irorporation for a ~=ell ~,,.,; ~~:xxrfption and exception to the p~xovisions pe "z~ ~~' fF•, r~ r <tri , ~~ thsits find well spacing pursuant to 2{~ As,'' 25.tt5S. ' West F~arsl~~d #~2 veil I.jstc~f ttr~snc:~ ~~~~ ~~b^~~~~°t~, ~~+~c~tr~ez's ~tztcl ulserai~~~~s t3~~1 ro~~~t'tic~~ ~~itlairt :t,Ot~ feet kr,tfn~ _ _ , ..._. aic;n __ _- .._ -~3dress .. ~ ~.~..._ Cate ~i~r_s.~.. . `r .j ~, l7}>1SIQ1] ft1. ~}lt <~.'. ~_r;l ` 1` ~lfff~ .`v3Q '4~v'f'Sr 7th, `': v. 1r1~ l~.riCllCirage Ill i 99561 _~3~~T~ U. ". [}{?~. I3~,i,T :.:~~;l~loble 6881 fi~,~ f.~~:t ! o>>I; (;r3. Anchorage ~.. _ 99SQ7-2591 (;caciEt i~u,: t T~;,l;f ~~,. I~EC. ~: ~ k I~1~tee ?525 C :,freer, 5±4~ 's~t~ Anchorage ' 9at?9 • • h, ? 4 ~?L, ~~~ i -~,. ..... ..~ •.n... V~~~ 4?. .-1~UA~i {J nwrmms.ww. ,~ i) ~ :.. ~: war ~._ ~ .. _.~..~ yw ~~ Y ~ .r ~'lk~ ~ ~ - `~T t~iL COF ~ 'T"7R} Aloska ~usine: t ius ~ __ _ _ .~ ~ .. _ ._.... ..~ gym. _ _... 'Ve~~ ~=t~rel~an~ Are TBN, R14W, Seward Meridian t ~ ~ ~e ~~ i2 't7 1~ 15 ;q 93 1tvF ~?2 Wfv1RU Forest ~': Atli _'3~;t~1'i'; 2 28 2? 2~i 25 ~---^^~ r ~ootC ~nte~ ~~ . i 32 33 ~ 3~ ~ 35 3~i '1" == 1 rvtile ___w,~ ,. ~~ ¢- ire ~ ~ ~ ~~'~ ~~ ~~~a~~ z.., ~ k '~ ^t I ~ , + Ii Sf ry!'g~~ L~t'~,1~ 1 ~rJl ~R ~1h+ll tl l~i:1 ~~a ~~v~~fi cif ease l~~ ~ 1 ^ t t '~~,,..- tyre ~ r • • ~ _ ,,, r r-,. ,. . • • ~, 3 ~~ { ~, ~ ~,~ 1 ~ - ~' • E ~' ~~J~ tntFS-7 f ~` r ~~ Sj 1~~ 3~... s` : J ~~ ~.~~~' 1 ~~ri' Frti~; ~°~ PJ~~~ i iiF~ ~.,..~ ~ic~~i~ .. • ~~ ~ ~' • F~~: _. _ _ ,~,. __. ._ ~ __,.w,, . .,~ ...~. r isv °~~~ I ~r -4~ i i • ---___._.._._.,~ED.~,,.~,- ~ ~ _ ~ g3 I f i 3. r'~ 4 ? . { • ~ . ~ .Forest Oil Corporation 310 K Street, Suite 700 ° Anchorage, Alaska 99501 ° (907) 258-8600 Fax: (907) 258-8601 TO: Federal Lease (A-035017) and State of Alaska Lease (ADL-359112) landowners and royalty owners DATE: December 13, 2007 SUBJECT: West Foreland #2 gas well ("WF #2"); West Foreland Field Forest Oil Corporation application for a permanent spacing exemption per 20 AAC 25.055 Disbursement of escrowed funds from WF #2 shallow gas production per Conservation Order No. 532 Forest Oil Corporation ("Forest") is providing you this letter as a personal notice pursuant to Conservation Order No. 532 issued by the Alaska Oil and Gas Conservation Commission ("AOGCC"), enclosed with this notice. This personal notice is to inform you of, (1) Forest's application to the AOGCC dated August 8, 2007, supplemented December 7, 2007, also enclosed herein, for a permanent spacing exception to the provisions of 20 AAC 25.055; (2) Forest's request for approval from the AOGCC to, (a) disburse funds from the escrow account Forest established for the WF #2 well pursuant to Conservation Order 532, (b) terminate the escrow account and, after termination of the escrow account, (c) make future royalty payments to all owners, landowners and royalty owners, including overriding royalty owners, from production from any sands stratigraphically shallower than the 9200-foot sand in the WF #2 Well pursuant to the terms of the Royalty Sharing Agreement ("RSA") executed by the affected owners and landowners of State of Alaska oil and gas lease ADL- 359112 and Federal oil and gas lease A-305017; and (3) your opportunity to be heard by the AOGCC regarding Forest's application and request at a public hearing scheduled for January 17, 2008 at 9:00 am, as described in the AOGCC's Notice of Public Hearing issued December 11, 2007 and received by Forest December 12, 2007, hereinafter referred to as "Notice of Public Hearing" and enclosed herein. The land owners for the Federal Lease (A-035017) and the State of Alaska Lease (ADL-359112), the two leases from which the WF #2 well produces, have just recently executed a Royalty Sharing Agreement ("RSA") that stipulates how the production from the sands stratigraphically shallower than the 9200-foot sand shall be allocated among the two leases. The RSA stipulates that that this production shall be allocated 90% to the Federal Lease and 10% to the State of Alaska Lease. If the AOGCC accepts the RSA and approves the allocation methodology described in it, then the AOGCC can also approve disbursement to all of the royalty owners of the funds that Forest has been placing in an escrow account for this shallow zone production since December 2004. If you have objections to how the RSA allocates production from the WF #2 and/or if you have information the AOGCC should know that would affect the allocation of production as to either the State of Alaska Lease or the Federal Lease then you should contact the AOGCC and/or request a hearing pursuant to the Notice of Public Hearing. Should you have any questions regarding this personal notice or the Notice of Public Hearing please contact Forest's Alaska Business Unit Land Manager, Jim Arlington at (907) 868-2112 or email him at jdarlinQton(c~forestoil.com. Enclosures: Forest Oil Corporation application to AOGCC dated August 8, 2007 Forest supplement to August 8, 2007 application dated December 7, 2007 (w/o attachments) AOGCC Public Notice RE Forest Oil Corporation application, received by Forest December 12, 2007 Conservation Orders No. 532 & 532A issued by the Alaska Oil and Gas Conservation Commission Page I of 1 ., i i F o R E S T O I L C O R P O R A"T I O N .~J(1 Cell C-~nr_r( ~ C> urfr. 700 Y ~ry ~y~' August 8, 2007 G~ ~ ~~~~ AUG ~ S 2p07 Mr. Jflhn Notman, Chair Alaska Oit and Gas Conservation Commission 333 W. 7~` Avenue, Suite 100 Anchorage, Alaska 99501-3539 Hand-1~~~c~ ~ bas Cutts. Cotnmissigtt at3tntar~~s Re: Application for either a conversion to a Permanent Spacing Exception or, alternatively, an Extension of Temporary Well Spacing Exemption for the West Foreland #2 Well ("WF #2'~; Conservation Order No. 532; West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: In order to accommodate scheduling requirements and in an effort to expedite disbursement of the escrowed funds established pursuant to Conservation Order No. 532, Foresf hereby submits by this letter an application for the WF #2 well for a permanent spacing exception to the provisions of 20 AAC 25.055 or, alternatively, an additional extension of the temporary exemption requested by Forest in its June 8, 2007 application. Forest wishes to advise that while the landowners have yet to approve a Royalty Sharing Agreement ("RSA"), the RSA submitted by Forest on February 1, 2007, and returned on July 17, 2007 as a pdf marked up by both BLM and DNR, is wholly acceptable to Forest. Forest understands that it has provided the BLM and DNR all information requested by either party to complete the RSA. Forest stands ready to provide any other information necessary to facilitate timely completion and execution of the RSA by all parties and any additional data the AOGCC deems necessary to approve disbursement of the escrowed funds to the royalty owners. If there are any questions, or should you need additional information, concerning this application please contact me at (907) 868-2112. Sincerely yours, FOREST OIL CORPORATION t h--._.i Jim Arlington Land Manager cc: Cook Inlet Region, Inc. Bureau of Land Management Alaska Department of Natural Resources, Division of Oil & Gas Pagc t of t F O R E S T O I L C O R P O R A T I O N •' . ~ ~;~~~~ Y ~,,~~ c r~•y~rfzrsnn~n„ C'Nir~r.~~rrr .99.5~~ ~ ~ • (rn~) ass-scon (~n~) ~ ss--scni (~.,.,) z~~~ ~Isska C1r ~~x Cans< ~a December 7, 2007 4n~horaga mt.-tr~s~atE Mr. John Norman, Chair Hand-Delivered Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Application for Permanent Spacing Exception for the West Foreland #2 Well ("WF #2") West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Forest Oil Corporation ("Forest"), as the current operator for the WF #2 well, by this letter hereby respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") complete the processing of the application submitted by Forest on August 8 (attached hereto) to issue an order exempting the West Foreland #2 well ("WF #2") from the drilling unit and spacing requirements of 20 AAC 25.055 as they pertain to the gas pool within the West Foreland Field. Forest was informed by the AOGCC that it would not schedule a hearing and process Forest's application until the Royalty Sharing Agreement between the affected owners and landowners was executed. Forest has just received today a letter from the Bureau of Land Management ("BLM' dated November 30, 2007 approving the execution of the West Foreland #2 Royalty Sharing Agreement ("RSA") which included therewith a copy of the RSA executed by the BLM, both of which are attached hereto. With receipt of this letter from the BLM, the RSA has now been executed by all affected owners and landowners and copies of all signatures to the RSA are also attached hereto. With the completion and execution of the RSA, Forest, on behalf of the affected owners and landowners, also by this letter hereby respectfully requests approval from the AOGCC to, (1) disburse funds from the escrow account Forest established for the WF #2 well pursuant to Conservation Order 532, (2) terminate the escrow account and, after termination of the escrow account, (3) make future royalty payments to all owners, landowners and royalty owners, including overriding royalty owners, from production from any sands stratigraphically shallower than the 9200-foot sand in the WF #2 Well pursuant to the terms of the RSA. Forest will provide at least 30 days notice to all royalty owners in both leases after Forest is advised by the AOGCC of the date and time of the hearing scheduled by the AOGCC. Besides contact personnel with the affected landowners changing, all information previously submitted to the AOGCC by Forest on July 2, 2004 in the original application for a Well Spacing Exception for the WF #2 Well (attached hereto}, and all other information subsequently submitted by Forest to the AOGCC during the several hearings and meetings with the AOGCC regazding this matter, remain the same except for the fact that following submittal of the renewed application Page I oft • • submitted by Forest on August 8, 2007, Pacific Energy Alaska Operating LLC became the new owner of the two affected leases as a result of Forest selling all of its Alaska assets. The new owner is a party and signatory to the RSA. If there are any questions, or should you need additional information, concerning this transmittal please contact me at (907) 868-2112. Sincerely yours, FOREST' OIL CORPORATION ,~, .~ 1` ~,, ~ ~- t . -~ ,'~~ ~ ~jJ`un Arlington ' Land Manager 4 Attachments: 1. BLM letter dated November 30, 2007 regarding Approval and Execution of West Foreland #2 Royalty Sharing Agreement; Royalty and Production Reporting Requirements 2. West Foreland #2 Well -West Foreland Field, Royalty Sharing Agreement w/ three separate signature pages executed by the three parties 3. Application Letter to the AOGCC from Forest Oil Corporation dated August 8, 2007 4. Application letter to the AOGCC from Forest Oil Corporation dated July 2, 2004 cc: Alaska Department of Natural Resotuces, Division of Oil & Gas Bureau of Land Management Cook Irilet Region, Inc. Pacific Energy Alaska Operating LLC Page 2 oft • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Forest Oil Corporation ("Forest") for conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532A. Forest, by letter dated December 7, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on that same day, requests a permanent spacing exception to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the West Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. West Foreland #2 is a deviated well bore. The surface location of the well is 886 feet from the south sine and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well is 760 feet from the north line and 1,146 feet from the east line of 21, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for January 17, 2008 at 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7`h 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 December 28, 2007. 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 after January 10, 2008. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on January 14, 2008 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion of the January 17, 2008 hearing. If you are a person with a disabi order to comment or to attend th Special Assistant Jody Colombie 79~-1 need special accommodations in please contact the Commission's ;: ,~„ DEC 1 2 2007 ~UR~r ~_ ail.. C~F~~o A± ~SK~ • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL ) CORPORATION for an order granting an ) exception to the spacing requirements of 20 ) AAC 25.055 to allow for the drilling and ) operation of the West Foreland #2 gas ) production well. ) Conservation Order No. 532 West Foreland Field West Foreland Undefined Gas Pool September 16, 2004 IT APPEARING THAT: 1. Forest Oil Corporation ("Forest"), by letter dated July 2, 2004 and received by the Alaska Oil and Gas Conservation Commission ("Commission") that same day, requests exception to the well spacing provisions of regulation 20 AAC 25.055 to allow for the drilling and operation of the West Foreland #2 gas production well ("WF #2"), which is closer than 1,500 feet to a property line and within the same govennrriental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on July 12, 2004, pursuant to regulation 20 AAC 25.540. 3. On July 21, 2004, Forest requested the public hearing be rescheduled. 4. Subsequent notice of opportunity for public hearing was published in the Anchorage Daily News on July 23, 2004. 5. On August 11, 2004, Forest submitted documentation that a notice had been sent to all known royalty interest owners in the affected leases. 6. All owners, landowners and operators within 3,000 feet of the anticipated productive interval have been notified. 7. No protests to the application were received. 8. A hearing was held in conformance with 20 AAC 25.540 on August 26, 2004 at the Commission's offices. Representatives from Forest, the Bureau of Land Management ("BLM"), and the Alaska Department of Natural Resources ("DNR") attended. Conservation Order 532 Page 2 FINDINGS: September 16, 2004 ' 1. The record for this order includes the records for Conservation Orders 450, 450-A and 450B. 2. WF #2 will be drilled as a deviated well. The surface location of the well is onshore, 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The proposed bottom hole location of the well lies offshore beneath the western side of the Cook Inlet, 1,365 feet from the north line and 1,105 feet from the east line of Section 21, T08N, R14W, SM. 3. WF #2 will lie entirely within Section 21, T8N, R14W, SM, which also contains the existing West Foreland #1 gas production well ("WF #1"). 4. The affected leases are onshore Federal Lease A-035017 and offshore State of Alaska Lease ADL-359112. 5. Testimony in the record of CO 450 established that: a. Lease ADL-359112 currently carries a 5% royalty obligation to the landowner. According to Forest's July 11, 2000 letter, overriding royalty interests (ORRI's} burden the lease by 12.5%, of which Forest re-acquired a 0.65625% interest. b. Lease A-035017 carries a 12-1/2% royalty obligation to the landowners. According to Forest's July 11, 20001etter, ORRI's burden the lease by 5%. 6. WF #1 is located entirely within Federal Lease A-035017. This well drilled and tested two gas-bearing sands, informally known as the "9200-foot sand" and. the "9400-foot sand." 7. As presently equipped, WF # 1 produces gas from only the 9200-foot sand. Abridge plug in the wellbore of WF # 1 prevents production from the 9400-foot sand. 8. Recompletion of WF #1 to allow production from the 9400-foot sand may jeopardize the well. 9. Forest testified that a steady fuel gas supply is critical to maintaining uninterrupted oil and gas production operations in this portion of the Cook Inlet Basin. 10. Forest utilized well data and 3D seismic data to map the West Foreland structure, including faulting that traps the gas accumulation being produced by WF #1 (CO 450B, Finding 5). 11. WF #2 is targeting the 9200-foot and 9400-foot sands updip of WF #1 on the same structure. ` Conservation Order 532 Page 3 September 16, 2004 12. In WF #2, the top of the 9200-foot sand will be located within State Lease ADL-359112, approximately 242' east of the boundary with Federal Lease A-035017. The top of the 9400-foot sand will also located within State Lease ADL-359112, approximately 293' east of the boundary with Federal Lease A-035017. 13. Forest proposes to equip WF #2 to allow gas production from the 9200-foot and 9400-foot sands, using either a single or dual completion. 14. Forest has identified additional, shallower prospective intervals that may also be encountered while drilling WF #2. The top of the potential shallow pay intervals lies within the Federal Lease A-035017, about 216' west of the common lease boundary. 15. If the shallower, prospective intervals contain sufficient pay, Forest may equip WF #2 to allow gas production from them. 16. WF #1 and WF #2 may both produce from the 9200-foot sand at take points approximately 2,685' apart within the same governmental section. 17. In order to drill and operate WF #2 as planned, the following. exceptions to statewide spacing regulations are needed: a. Under 20 AAC 25.055(a)(2): "for a well drilling for gas, a wellbore may be open for test or regular production within 1,500' of a property line only if the owner is the same and the landowner is the same on both sides of the line." b. Under 20 AAC 25.055(a)(4): "if gas has been discovered ... not more than one well may be drilled to and completed in that pool on any governmental section; 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." c. Under 20 AAC 25.055(b): "a well may not ...begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100." 18. No order has been issued by the Commission establishing drilling units or a spacing pattern for the reservoir that differ from the statewide requirements. 19. Forest is the sole working interest owner of both leases for all intervals including, and shallower than, the 9400-foot sand. 20. Phillips Petroleum Company, or a successor or affiliate, has an interest in zones below 9,527 feet (measured depth) in the WF #1 well (CO 450A, Finding 4). 21. Landowners of Federal Lease A-035017 are Cook Inlet Region, Inc. and the U.S. Government. The State of Alaska is the landowner of Lease ADL-359112. The DNR Conservation Order 532 • ~ September 16, 2004 Page 4 administers State Lease ADL-359112. The BLM administers Federal Lease A-035017 on behalf of Cook Inlet Region, Inc. In addition to the landowners, there are numerous Overriding Royalty Interest Owners ("ORRIs"). 22. On August 11, 2004, Forest submitted documentation to the Commission indicating that notice had been sent via certified mail to all known royalty interest owners in the affected leases and all owners, landowners and operators within 3,000 feet of the anticipated productive interval. 23. In response to Forest's notice, evidence was presented indicating all but one of the notices had been successfully delivered. In response to the notices, only one comment had been received regarding drilling and producing WF #2. That comment supported granting the requested spacing exception. 24. Due to non-compliant spacing, the Commission issued CO 450 on July 24, 2000 granting a temporary spacing exception to allow the regular production of WF #1 from the 9200-foot sand. The performance terms of CO 450 were extended by CO 450A, issued April 23, 2001. 25. CO 450 required that Forest establish an escrow account and make sufficient payments to protect the interests of all royalty owners caused by differing landownership and uncertain production allocation. Forest was further required complete negotiations with BLM and DNR to establish a compensatory royalty agreement ("CRA"). 26. Forest, BLM, and DNR negotiated a CRA to allocate production from WF #1 to each lease. Pursuant to that agreement, all parties agreed to an allocation of 58% to Federal Lease A- 035017 and 42% to State Lease ADL-359112 of all gas reserves producible from any interval not deeper than 9,527' from the West Foreland #1 well. The allocation percentages were determined based on analysis of seismic information, production history and formation pressure data using accepted geological and petroleum engineering methods. 27. The Commission issued CO 450B on September 29, 2003. CO 450B granted a permanent spacing exception for WF #1, approved the allocation factors from the CRA and ordered disbursement of the escrow funds. 28. The CRA applies to portions of the 9200-foot and 9400-foot sands that lie within Federal Lease A-035017 or State Lease ADL-359112 and are in hydraulic communication with those same sands in WF #1. The CRA is valid until the Federal and the State leases have terminated and all wells producing gas from the 9200-foot and 9400-foot sands are plugged and abandoned. 29. The CRA does not apply to sands other than the 9200-foot and 9400-foot sands. The CRA did not include a provision to adjust the allocation interests if new information were to be developed. Conservation Order 532 Page 5 September 16, 2004 30. Forest desires a permanent spacing exception for drilling and production of the 9200-foot and 9400-foot sands within WF #2, and proposes to allocate any production from those sands according to the existing CRA. The notice described in Finding No. 23 informed recipients of this proposed allocation. 31. Forest recognizes there is a possibility that the 9200-foot and 9400-foot sands in WF#1 and WF #2 may not be in hydraulic communication within the 9200-foot sand, and that if there is no hydraulic communication, a revised allocation formula may be required to ensure fair allocation of production. 32. Forest desires a temporary spacing exception for drilling and production of gas-bearing sands within WF #2 that are stratigraphically shallower than the 9200-foot sands. If the prospective shallow sand(s) are capable of producing gas, Forest proposes to establish a separate escrow account and deposit sufficient royalty payments to protect the interests of all royalty owners of both leases until an additional CRA is executed. Anew CRA would include a provision to adjust the allocation interests if new information is developed. 33. The Alaska Department of Revenue publishes quarterly calculations of the prevailing value of Cook Inlet gas under 15 AAC 55.173(b). 34. Both the BLM and DNR representatives present at the public hearing agreed to the facts presented in the hearing and support granting the spacing exception. CONCLUSIONS: 1. Exceptions to 20 AAC 25.055(a)(2), (a)(4), and (b) are necessary to allow drilling and operation of WF #2. 2. Ensuring a steady fuel gas supply is key to maintaining uninterrupted oil and gas production in this portion of the Cook Inlet Basin. 3. WF #1 only produces from the 9200-foot sand, and that production is allocated according to the CRA executed between the operator and landowners on April 20, 2001. 4. Drilling and operation of WF #2 will allow production from the 9400-foot sand- without jeopardizing WF #l. 5. The CRA, which governs production from the 9200-foot and 9400-foot sands, provides for additional wells. 6. Since the 9200-foot sand will be opened by WF #1 and WF #2 closer than 3,000' and on the same structure, this sand can be reasonably assumed to be in hydraulic communication between the two wells. 7. The Commission does not expect production from the 9200-foot sand at the proposed exception location to cause waste or adversely affect ultimate recovery. C'.nncervatinn (lrrlPr S~7 • ~ r,._.,...._L.._ , c ~-nne Page 6 8. Regular production of WF #2 for a period of approximately 24 months is likely to yield sufficient information to confirm whether the 9200-foot sand within WF #1 and WF #2 is in hydraulic communication and that the previously agreed allocation percentages are valid. 9. In the absence of formal pooling of the two affected lease tracts, the purposes of AS 31.05.100 require that allocation of production from sands stratigraphically shallower than the 9200-foot sand either be agreed on by all interest owners or be approved by the Commission after notice to all interest owners. 10. If sands in addition to the 9200-foot and 9400-foot sands are produced, until an appropriate allocation of production is established, a separate escrow account should be established and Forest should deposit funds equal to the volume of gas produced from those other sands times the maximum sum. of the .royalty percentages in the leases times the applicable prevailing value of Cook Inlet gas published under 15 AAC 55.173(b). NOW, THEREFORE, IT IS ORDERED: 1. Forest's application for a spacing exception to allow for drilling and initiating gas production from the WF #2 well from any interval not stratigraphicaliy deeper than the 9400-foot sand is temporarily granted. This spacing exception expires 30 months after Forest completes WF #2, without prejudice to Forest's right to apply for an extension of this temporary spacing exception or for a permanent spacing exception. 2. Until it is otherwise ordered by the Commission or it is otherwise agreed by all interest owners in Lease A-035017 and Lease ADL 359111, including overriding royalty owners, Forest shall allocate WF #2 production from the 9200-foot and 9400-foot sands in accordance with the allocation percentages established in the CRA. 3. Promptly after the WF #2 well has been produced from the 9200-foot and 9400-foot sands for 24 months, Forest shall provide the Commission geologic and geophysical data and the results of the production pertinent to establishing a. whether hydraulic communication exists between WF #1 and WF #2 in the 9200-foot sand; and b. what proportions of the gas reserves producible from WF # 1 and WF #2 underly Lease A-035017 and Lease ADL 359111. 4. Before regular production of gas commences from any sands stratigraphically shallower than the 9200-foot sand, Forest shall establish a separate escrow account for royalties on such production, substantially similar to the account required under Conservation Order No. 450. Forest shall fund this escrow account on the same basis as that set out in Conservation Order No. 450 as amended by Conservation Order No. 450-A, except that the funding obligation applies to production from any sands stratigraphically shallower than the 9200- foot sand. No funds may be disbursed from the new escrow account except by order of the Conservation Order 532 Page 7 September 16, 2004 Commission, after Forest provides at least 30 days notice prior to hearing to all royalty owners in both leases. DONE at Anchorage, Alaska and dated September 16, 2004. John K. Norman, Chairman Alaska Oil and Gas Conservation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within ]0 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from [he date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for reheazing was filed). • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL ) CORPORATION for. an order granting an ) extension of the temporary exception to the ) spacing requirements of 20 AAC 25.055 to ) allow for the continued operation of the West ) Foreland No. 2 gas production well. ) Conservation Order No. S32A West Foreland No. 2 West Foreland Undefined Gas Pool August 9, 2007 IT APPEARING THAT: Forest Oil Corporation ("Forest"), by letter dated June 8, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") that same day, requests a temporary extension of the exception to the well spacing provisions of 20 AAC 25.055. The initial temporary extension was authorized in Conservation Order No. S32 ("CO S32") to allow for continued operation of the West Foreland No. 2 gas production well ("WF #2"), which is closer than 1 S00' to a property line and within the same goverrunental section as, and less than 3000' from, a well capable of producing from the same gas pool. Forest further requested that should the Commission determine a hearing is required prior to approving its extension request, then the Commission allow consideration of a request by Forest to convert the initial temporary spacing exception to a permanent spacing exception. 2. By letter dated June 11, 2007 and hand-delivered to Forest that same day, the Commission notified Forest concerning its non-compliance with certain provisions of CO S32 relating to WF #2 and instructed Forest to shut in production from the well. 3. On June 11, 2007, Forest requested an informal conference, which was held at the Commission on June 12, 2007. At the informal conference, Forest represented that shutting in WF #2 might damage the reservoir. 4. Based on Forest's representations at the informal conference, in a letter that was hand- delivered to Forest on June 13, 2007, the Commission: a. cancelled the directive to shut in production at WF #2. b. scheduled a public hearing at the Commission at 9:00 a.m. on July 24, 2007 to consider Forest's application (i} for an extension of the temporary spacing exception granted in CO 532, or {ii) alternatively, to make this exception permanent; c. required that, by July. 1 b, 2007, Forest provide the Commission (i) a letter of non- objection, signed by the State of Alaska Department of Natural Resources ("DNR") and the United States Department of Interior, Bureau of Land Management ("BLM"), to Forest's application, and (ii) evidence that notice of Forest's application and the 'Conservation Order 532A Page 2 August 9, 2007 hearing notice were sent to all interested parties, including all royalty owners and overriding royalty interest owners ("ORIOs"); and d. required that, by July 16, 2007, Forest provide the Commission all technical analyses for the affected reservoir that Forest provided DNR and BLM in connection with a tentative compensatory royalty agreement to govern the allocation of production form WF #2. 5. Notice of opportunity for public hearing was published in the Anchorage Daily News on June 15, 2007, pursuant to 20 AAC 25.540. 6. On July16, 2007, Forest submitted a letter ofnon-objection, signed by DNR and BLM, and evidence that notice of Forest's application and the June 15, 2007 public notice were sent to all interested parties, including all royalty and overriding-royalty owners. Forest also submitted a technical analysis for the affected reservoir. 7. On Julyl6, 2007, the Commission notified Forest, DNR, BLM and Cook Inlet Region, Inc. ("GIRT"), another interested party, that the public hearing scheduled for July 24, 2007 would be continued on July 25, 2007. 8. At 9:00 a.m. on July 24, 2007, the Commission convened the public hearing and continued it until 9:00 a.m. on July 25, 2007. 9. At 9:00 a.m. on July 25, 2007, representatives from Forest and DNR and one ORIO attended the hearing. The hearing was held in conformance with 20 AAC 25.540. At the hearing, Forest did not pursue their request that the temporary spacing exception be converted into a permanent exception. FINDINGS: The record for this order includes the Commission's well and production records for WF #2, the record for Conservation Orders 450, 450-A, 450B and 532, and the other documents identified above. 2. WF #2 is a deviated, gas production well that was completed on December 11, 2004. The surface location of the well is onshore, 886' from the south line and 571' from the east iine of Section 2I, T08N, R14W, Seward Meridian ("SM"}. The bottom hole location of the well lies offshore beneath the western side of the Cook Inlet, 760' from the north line and 1,146' from the east line of Section 21, T08N, R14W, SM. 3. WF #2 lies entirely within Section 21, T08N, R14W, SM, which also contains the existing West Foreland # 1 ("WF # 1 ") gas production well. 4. The affected leases are onshore Federal Lease A-03541? and offshore State of Alaska Lease ADL-359112. 5. The landowners of Federal Lease A-035017 are Cook Inlet Region, Inc. ("CIRI") and the U.S. Government. BLM administers Federal Lease A-035017 on behalf of CIRI. The State of Alaska is the landowner of Lease ADL-359112. DNR administers State Lease ADL-359112. In addition to the landowners, there are numerous ORIOs. Conservation Order 532A ~ ~ August 9, 2007 Page 3 6. Forest is the sole working interest owner of both leases for the affected reservoir sands. 7. The surface location for WF #2 is within Federal Lease A-035017. The well is perforated in two gas-bearing sands that occur between the measured depths from 8494' to 8525' (herein termed as the "8500-foot sand") and from 10,371' to 10,383' (herein termed the "9200-foot sand"}. $. In WF #2, the top of the 8500-foot sand lies onshore within Federal Lease A-035017, about 85' west of the property boundary with State Lease ADL-359112. The top of the 9200-foot sand lies offshore within State Lease ADL-359112, approximately 250' east of the property boundary with Federal Lease A-035017. 9. Forest has equipped WF #2 with a dual •completion to allow gas production from the 8500- foot and 9200-foot sands. Production from the 8500-foot sand began in December, 2004, and production from the 9200-foot sand began in April, 2005. WF #2 is producing gas from both sand intervals. 10. WF #2 and nearby gas production well WF #1 produce from the 9200-foot sand at take points that are less than 3000' apart and within the same governmental section. 11. The 8500-foot sand producing in WF #2 is not gas-bearing in WF #1. WF #I also produces gas from a deeper sand, herein termed the "9400-foot sand." The 9400-foot sand is not productive in WF #2. 1 Z. Due to non-compliant spacing, the Commission issued CO 532, a temporary spacing exception that authorized drilling and initial gas production from the WF #2 well from any interval not stratigraphically deeper than the 9400-foot sand. CO 532 was issued on September 16, 2004, and it expired June 12, 2007, which was 30 months after Forest completed WF #2. 13. Forest testified that, in compliance with CO 532, it established and funded an escrow account to protect the interests of all royalty owners and ORIOs. 14. Forest testified that it is working with DNR and BLM to establish a royalty sharing agreement. Forest also testified that a draft royalty sharing agreement was provided to BLM and DNR on February 1, 2007, and Forest received the first comments on that draft agreement from BLM and DNR during the week of July I6, 2007. According to Forest, DNR and BLM have primarily suggested grammatical changes and changes to make provisions more consistent: not changes to the proposed allocation of production.; , I5. In the July 16, 2007 letter of non-objection, DNR and BLM consent to the application of Forest for an extension of the temporary spacing exception to allow the WF #2 well to continue to operate under terms imposed by the Commission. 16. At the July 25, 2007 hearing, Forest requested a 6-month extension of the temporary spacing exception. Forest testified that it anticipates being back. before the Commission before the expiration of the six-month extension period to request that the extension of the temporary spacing exception be converted to a permanent spacing exception. 17. At the July 25, 2007 hearing, an ORIO for WF #2 requested the expeditious resolution of this matter and disbursement of the escrowed funds. Conservation Order 532A ~ ~ August 9, 2007 Page 4 CONCLUSIONS: 1. An extension of the spacing exception authorized by CO 532 is necessary to allow for the continued operation of WF #2. 2. Granting an extension of the spacing exception will not likely result in waste, adversely affect ultimate recovery, or impair the correlative rights of persons owning interests in the tracts of land affected. 3. Although Forest requested in its June 8, 2007 letter that the Commission consider granting a permanent spacing exception, Forest did not follow up on this request. Therefore a permanent spacing exception is not warranted at this time. In addition, a permanent exception is not now warranted because a royalty sharing agreement has not been completed. 4. Forest, BLM and DNR have taken an unduly long time to complete the allegedly uncontested royalty sharing agreement. 5. Because Forest is receiving the full benefit of production from WF #2, there is no incentive for Forest to complete the royalty sharing agreement. 6. Although royalty payments are held in escrow for all parties except Forest, these parties are currently receiving no benefit from WF #2 production. 7. A single, six-month extension will be more than sufficient to allow Forest, DNR and BLM to finalize a royalty sharing agreement and disburse the escrowed funds. 8. Three months is more than sufficient time far Forest to submit a complete application, including all supporting documentation, for a permanent spacing exception for WF #2. NOW, THEREFORE, IT IS ORDERED: The Commission grants Forest's application for an extension of the temporary spacing exception to allow continued gas production from the WF #2 well from any interval not stratigraphically deeper than the 9400-foot sand. This extension is not renewable. This extension expires on February 1, 2008. If Forest, or any successor operating company, desires to apply to the Commission for a permanent spacing exception for WF #2, that application and all supporting documentation must be received by the Commission no later than 4:30 p.m. on November 1, 2007, to ensure that there is enough time for the Commission to process the application in an orderly manner. Conservation Order 532A ~ ~ Au ust 9 2007 g Page 5 Unless the Commission authorizes a permanent spacing exception for WF #2 by February 1, 2008, then before February 2, 2008, Forest, or any successor operating company, shall shut in WF #2. At the time of the shut-in, Forest shall notify the Commission so that a Commission field inspector can verify the shut-in status~f the well. DONE at ~~e, Alaska and dated Gas Cons~v~'fion Commission Cathy P Foerster, Commissioner Alaska it and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse- the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. 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Allred Ave # 145 ~/ ------- c~iy' s~i Mesa, AZ 85204 .~ a m ,. ~- • •-. it ~, •• R.1 ~ Postage $ _ ~ O Cergf(ed Fee ~ ` O Realm Receept Fee (E~rsemerd Required) ` Postrnark O R Here ftTl (Er~oo~~aM ~ulr~ r~ ~ Totai Postage $ Fees ~ • a sa„r r° Humane Society of SeattleJKing ~ ~ County, Attn; Directo / ~ ~ 13212 SE Eastgate Wa of ,/ ----- Bellevue, WA 98005 y '----- ~ I • I • . • • • • - • f1J S - _ D' p Postage $ ~ ,~ r ~ ~ ~ '. Certified Fee f1J i p Return Receipt Fee ~ c, Postmark p (Endorsement Required) Here p Restricted Delivery Fee 0 (Endorsement Aequired) / ~ Totat Postage & Fees $ i / ~ -n en` James L. Thurman & Leta Thurman 0 0~`;~925 Aurora Drive -------'~ `~ ~~: ;Fairbanks, AK 99709-5506 `~ ----------- • • r'~ ~ Q" ~ 1 ~ ~ ~ /• ~ Q" l`- • ft.l ppy~ge $O r ~ ~ r~ [7 Certified Fee ~ j' .. J ~ , o ~ (p ~, p Return Receept Fee ~ •ppyyma~ `- (Endorsement Required) "Here ' ~ i ~ Restricted Delivery Fee ul (Endorsement Required) m ~ Total Postage & Fees S o ~"` r° E Gay Knuteson (` i%535 Charles St orP06 •-~~-- cm; sc Mesquite NV 89027 y .~ f` ~ . p • m .. • ..- ~- • . . • , ~ ; .• • M1 ul ru ~ Postage $ t O Certified Fee O O Return Redept Fee ~7 ` Posbnark (Erxbrsemem Required) p( ~ ` ~ p Restricted Delius Fee m (Endorsement Required) C~ Total Po ~ stage & Fees ~ ~~ V a r° Donald & Nola Sanders Trust r°- ;Donald Sanders, Trustee orPOBo359 Gean Str ~''~IMesquite NV 89027 _. CERTIFIED MAILT~:, RECF`~`T (Domestic Mai! Only; No Insurance Coe, . ,ge Providec E~ ~ +11 ~ ~ ~ ~ Sri ~' a b, rv J CeNfied Fee a ~ ° ° Return Redept Fee ~ (Ettdorserttent Required) i Postrnark Here ° m Restricted DeNvery Fee (Erdorsement Required) r-'~ Total Postage ~ Fees ~ ~ . ~ JIi1lG Vl t11QJ1tQ o ~` T° Dept. of Natural Resources ~ ~~550 W. 7~` Ave _____ Gn: s~ia Suite 800 ,/ °-'"' Anchorage, AK 99502-3560 .~ ~ ~ ~ ru (Y'I ~ . • D" N u'1 tt_t $ ~ 5 . r~ ` ° Certified Fee ~ , ( ^ ° Vv ° (Endo ersement R ~utired Here ~1 ) Restricted Delivery Fee l (Endorsement Required) Total Postage & Fees s o se„r r° Delta Society f r°~- ,Attn: Lawrence J. Nonveu ; .::'________ °`-P°_B 875 124tt' Ave NH # 101 -------- '~Bellevue, WA 98005-2531 +;~ CERTIFIED MAILTti, RECEIPT (Domestic Mail Only; No Insurance Coverage Providec [`- ~rl ftJ Pse S /?'~ v o Fee at 5 ° Postmark ° Return Redept Fee `'1 j ~re (Endorsement Required) ~(~ l ° Restrcted Delivery Fee m (Endorsement Required) ~ Total Postage 8 Fees ~ ~ ~ / ° ~" ° William Stroecker v 0 ~`' ~ P.O. Box 71230 --""' or PO Bc ~;; ~; Fairbanks, AK 99707 ------- rv ~ l7' f~ t17 O t11 Pose ° ° postmark ° Return Redept Fee < Here ~R~~~ a ~ ° Restricted Delivery Fee m (Endorsement Required) _ ~ Total Postage & Fees o sent rt Clerk of Trial Courts / ~ _ . Re: Richard Wagner / ,~_ ~l 101 Lacey St ~'~ ~ Fairbanks, AK 99701 w ~ ~ m !~ ~ Postage $ ~c ~ O Certified Fee `~ ~~ ~ -- ~ Return Reciept Fee End ant R ' d ~ ~ HPostmark re ( orsem equ~ ) p Restricted Delivery Fee e m (Endorsement Required) ~ Total Postage & Fees ~ 3 o sent rc Washing Correction Center for ~ si;~4: Women/Prison Pet Program --------- ~~ `_9601 Bujiach Rd NW ________ G>ig Harbor, WA 98332 r...... ,.r n 1....t.., CE RTI FIED MAIL REC EIPT r~n (Do mestic Mai! Onl y; No Ins urance C overage P rovided) ~~ F d li i f i i i b i or e very n ormat on v t ou s r we s te a t www.usp s.com~, ~` ! t.r7 f1J Postage S t a ° Certified Fee ° p Return Reciept Fee (Endorsement Required) ~ O Restricted Delivery Fee ~1l (Endorsement Required) m ~ Total Postage & Fees o ~'" T° Charles E Cole ~` ~~i406 Cushman St or PO Ba ~;,;; ~ Fairbanks, AK 99701 Postmark Here ~ 1 ~' • - ~ ~ ~ .€ ~ ` ° . $.- o, ~ Postage $ O~ ~-- _ \C.'~~, ~ Certified Fee ^ = / ~~ r ~'~ ~ ° Retum Recelpt Fee CCC777CCC Postmark ° (Endorsement Required) ~ ~ Here ° Restricted Delivery Fee (Endorsement Required) ° vi ~ Total Postage 8 Fees $ ~ , , „D ten` Georgena Newman ° Siree p.0. Box 608 --------- ° ~`- or PC K HI ~ apaau, cry'; 96755 ----------- ° ~ . - • ~. m a, r- ~_ ° t U"' ° Postage $ r~ Certified Fee ° Retum Receipt Fee ~ \ ~ P He a~ ° (Endorsement Required) ~ ` ~ Restricted Delivery Fee J (Endorsement Reqwred) r.~~ Total Postage & Fees ~ ' rU ~ Sern Jeffrey L Burgess ° p 4891 N La Lomita o ------------ ° , '` ~;ry Tucson, AZ 9571$-6028 .~ s , 1 ~ ~ 0-. ~~ ~ - • .~• ° .~ s,,. ~:.~~ _; ~„ A r-~ .~~~~ ~ Postage $ t ~ ~ _ ~' ~~,'. Certified Fee ~ _ ~ - ' (~_ ~ ~~ ~ Postmark f ° Retum Receipt Fee 4, Z Here ~ i ° (Endorsement Reqwred) t \ ~ ° Restricted Delivery Fee '~ ~ ~ ~ ~; ;;~~ (Endorsement Reqwred) €te? ~ Total Postage & Fees ~ ~ 1 ' "' ` fll sent Jin K Rllee ° ~i:~ 2233 Birchdale Dr ° or PG ~` city,;Thousand Oaks, CA 91362-153 ~---------- CER °IED MAILTM RECEIF (Domesrr~ Mail Only; No Insurance Covera o-' r` (1J Postage $ ~ ~~~ r-~ ° certired Fee ° r Postmark ~ (ErulRrse~en~eq irk ~ Here ° Restrided Delivery Fee ` m (Endorsement Required) ~ Total Postage & Fees ~ ~T,HVA Roylaties ° _ __._.55 NE Fifth Ave ____ ___ °°~o~t Suite 201 Delray Beach, GL 33483 .~ ~ - ~ ~• • .-. r' _ 5 ° t y~ ( ° Postage $ Q ~ '- ~ _~~ r~ , ~~ t` Certified Fee ~ J •v ~ty rU c- ~~ r ~ ~~ Postmark ° Return Recei t Fee ^-) Here 1 , ~' ° (Endorsement Required) C~ ~ \ ~ ~ ;~~ ~. / ~ ~>~ ° Restricted Delivery Fee ~'~'" ;~-__. - ?4 ° (Endorsement Required) `~~ti~ 'y~J~ ~. - ~ Total Postage & Fees ~ ~ ~` fU _ .~ sent To Colene MerlTs ° ~hBer, f P.O. Box 1394 `~ -------- ° orPOB '` city -sia Ronald, WA 98940 -------- .~ 1 e ~ r- I ~ ~ ,? • -~- • ~.-r lti ° ~°"` ~~ 0 i~ g Postage $ © r i r~ ~"\ ~` ~ ~, , l rr-- i Certified Fee ~ / e r -~ y' ~ ~`~t ~~¢i, ' rIJ Vc ~Ci ~. .~ ~~S ° Retum Receipt Fee Postmark ~~ ° (Endorsement Required) ~, ~ .here ° Restricted Delivery Fee ~ j ° (Endorsement Required) ~ ~,~~ ~...~,.__- ~ ~'~ .~~~~r ~ Total Postage $ Fees `~Q~ ~-~ rl,l 11G1111 W ~~1u~WVVU i~ VVQUIG v~- Sen"Trust ~ ~ ° ~i~e~Nadene M Pettijohn, Trustee ---------- ° or PO r' ------- P.O. Box 495 _ crry. s -------- Kenai, AK 99611-0495 ~~~j1 U ~ - .n , . • r • r 4 ~, ~„ ,~ Postage $ ; ~ ~ r Certified Fee ~ 1 ..~r ~i 3~ 4 _ -' ~ ~'~ ~ 0 ` ui d) t Ri -al Postmark ~ tr Here '~ i ;::'_,~ . e eq (Endorsemen y~ ~ Restdcted Delivery.Fee (Endorsement Regwredj c ~ v" ~ ri ~ . Total Postage 8 Fees $ _ ~ ° sent Mary Pryor Thomas ° ~`- f sires 10800 Hideaway Lake Drive ----------- ~~ Anchorage, AK 99518 °-°---°- ~ ~ Tl ~ ~ ~ ~ ~ ~' ~ ( p" to ft1 Postage $ ~o ~ s ~_;" p Certified Fee , a p ,Postmark p Retum Reciept Fee ~_. Here (Ernbrsement Requud) ~ C" estricted Delivery Fee - ~ ~dorsemeM Requued) R. r~ Q Total Postage & Fees ~P ~- Harry r. iii; ve °p ter'` n Gregory C. Taylor, Esq. f `` s 3000 A St or PO ~ •----___-- cay, sSuite 300 Anchorage, AK 99503 tr ~ D-' r t.n . . - , ~ Postage $ ' - "~' ~ p Certified Fee /~ lJ ~ p p '. Retum Reciept Fee (Endorsement Regwred) ` Postmark,, ',' ~ ~ ~ Here `~ ~.• ° ~ ` Restricted Delivery Fee (Endorsement Required) `` ~ y ~ >< ~~ I9~i~et~~~ ~t ~ ° ~ Donna M. Dowling, Co-Trustee ~ ~ C/O Swalling & Associates --------------- X201 C St, Ste 405 _______________ L Anchorage, AK 99503 ', CERTIF "7 MAILT~~ RECEIF (Domestic M~__ Jnly; No Insurance Covera~ Q- - - N ru - Postage S f~ r , i p Certifed Fee ~ ~ ~ I ~` ~ `- ° ~ ~~ ` , p Retum Reciept Fee , , (Endorsement Required) ~ i Here } 0 ° Restricted Delivery Fee ' '* f' u1 (Endorsement Required) _ m r~ 7 Total Postage & Fees o sent n Enea Tekna Investments r°- s~i Attn: Matthew T. Gavora ~~~P.O. Box 70021 ------- ch; s ~--------- Fairbanks, AK 99707 CERTIFIED MAILT~~ RECEIF (Domestic Mai! Only; No Insurance Covera~ Q' fU Postage $ O CeNtied Fee p ~ Postmark p Retum Reclept Fee i ~ Here (Endorsement Required) i 1 ° Restdcted Delivery Fee m (Endorsement Required) a Total Postage & Fees $ ~ p° ~'" T° Mary H. Hale '~` s~i ; 3 596 G 7/ 10 Rd '°------ c;~sGPalisade, C081526-8723 ------ CERTIFIED MAILTM RECEIF (Domestic Mail Only; No Insurance Covera~ ~ - - RJ ~.°~ Postage $ p certified Fee p ~ Postmark p Retum Reciept Fee Here (Endorsement Required) t ° Restricted Delivery Fee m (Endorsement Required] Total Postage & Fees ~ , o sent rr The Erven Revocable Liv Trust (°~ si~i;~ Melba C. Erven, Trustee ~ --------- __rP°_'.707 Hillcrest Ave. ctj, s, --------- Roseville, CA 95678 N ...0 M1 ~~ Postage $ I ~ p Certified Fee ~ ~ p Retum (Endorsement Required) ~ p m (EndoR rsement~RpWred) a r [ ~„ . ~..~ -' f' t Postmark j . ; i ~ ~ Here. Total Postage & Fees r ~- umversu ~r °o T`Board of Regents '` ~ Estate Gift Acceptance '-------" or PO! cy-s;1200 Fifth Ave # 414 --------- Seattle, WA 98101 .~ tU ~ , _ ' r. Q" • Q" ..• .•. o ~ - . ~ Postage $ ~ ` ~ Certified Fee O Return Receipt Fee ~ 1 p (Endorsement Required) ,~ / ~ GND p Restrcted vc t p (Endorsement gequlred) aF ~~ ~' / m r ''Drat Postage & Fees ~ $ ~~_ m nt To -- ~ ~:.- w -o Gregory S Burgess AS a~~• o;MPOa 963 Banmoor Dr 8 ~~; sip Troy, MI 48084-1686 J -- _-- -- 0-' lti O Q' p Postage ti Certified Fee fU ~ ~ ~ pp Retum Receipt Fee ~ ` \ ~ (Endorsement Required) \ (p p Restricted DeCrvery Fee p (Endorsement Required) ~ Total Postage & Fees ~ ~ r ~ ~ a~ "' Richardson Family Trust Banc To ~ --S`freef,:dFHelen Richardson, Trustee orPOBo:3511 Andree Dr Unit A C~ ~81EAnchorage, AK 99517-2338 Po tr~iark n , i V.V• 1 V~71G1 VVI YIVVIh1 ' CERTIFI' ` MAILT~., RECEfPT ' (Domestic Ma,, ,nly; No Insurance Coverage Provided) tti f1J Postage $ r~ • , n O Certified Fee t„/T~ p O Retum Reoiept Fee , Prk p .t. (Endorsement Required) _ . ~ Restricted Delivery Fee " m (Endorsement Required) '-R _ Q t Tote' _ - - - ~ o ~,,, L. Warren Hines ~ 4856 Bryn Mahn Ct # 1 "/ ---.------ ~~Anchorage, AK 99508 .~ ul ~' I p ~ Postage $ ~ ~ t Certified Fee ~ 1 ~ ®~ s~ ~ p p Retum Receipt Fee (Endorsement Required) p~ , ~ l ~ Postmark Here Oj ~`^.; p ~ Restdded Delivery Fee E ~ R t!? l p ( ndorsement Required) ~ J~n u7 ~ Total Postage & Fees $ f/ ~~ ~~/ ~ fl.l :~ J~~p ~ se, COiI, 1nC. . ~ 5914 124`" Ct NE o, ----- ~ Cir'Kirkland, WA 98033 ----- ~ .~ - ~ p p _, ~ 'H p ~~• ~• ~' p Postage $ ~ y >• Certified Fee ~ I 7 fU lJ m p Retum Receipt Fee ~ O (Endorsement Required) j p Restricted Delivery Fee (Endorsement Required) O ~ Total Postage & Fees ~ ~ ~ ~ ent To Jason M Burgess p° ~~'~'• "~ 3346 E Tonto Dr °-_--- ~ or PO Bo. City "siei<Phoenix, AZ 85044 ~s~ i ~` , ~tmark ~ m CSi ~~~~? ~ t 4 G/ s 1-'1 1• • • • - • r r ~' _ _ p Postage $ 1 Q' r~ Certified Fee / ` ~ ~ ~~ I1J O~ Rohtlmark fp p Return Receipt Fee . . p (EndorsementRequued) ,` q 'fie t~~ O "~ Restricted Delivery Fee S rOv p (Endorsement Requred) 88~~, ~ Total Postage 8 Fees fLl Sent > ..n John C McDonald 1°p` o;';,~P.O. Box 940215 ~ _____i__- city,"~ Houston, AK 99694-021 S - ~ ~ up"l 1. - • . . .-~ ~- ~ r na Postage $ a p Certified Fee ~ < ~ ~`O~Postmark p (Endors~em rt R~utir~) p~ ~ ~ ~ 2 ~~ Here p ResMded DeCnrery Fee Q ~ ~ J~ .'":^ -; , ~ "-ndorsement Required) - fr r. Total Postage & Fees ~~ ~ _ (~ S '- `SE'S _ ° ~"t T David R. Cottis 0 "' 'sbeei 84-5133 Painted Church Rd / -- ~;~~Captain Cook, HI 96704 ~/ -- .~ ~ ~ - ~ 1• 1 .•. ~ .. r "~ 45t?2 ti P°stage $ ~PG E ~. ~ Certified Fee ~ - ~ ~~ p 5 ~ Postmark ~ p Return Aedept Fee Here ~. (Endorsemend Required) ~ C ~ 3 m p Restricted Delivery Fee ~.~ _ 'rp u'1 (F1WOrsernent Required) cp rl r1. ~~~ TOtnl Pnatann R Fwwe T ~ c ~- Minerals Management Service V °• ~~' Royalty Management Program / ---- Box 5810 T.. A. _________ Lakewood, CO 80217 Rj 1• ~ ~r .•- • r-• d - w p ;_ f?' p Postage $ ~ Certified Fee ti ~. ~~ P~CHO~ p Return Receipt Fee Pie nark p (Endorsement Required) ~ ~ l p Restricted Delivery Fee C ~ ~ p (Endorsement Required) fez W ~ _ ~ ~ Total Postage 8 Fees ~ S ~~` ' `~ Robert L & Deanna Persons ''`~°-~ " p Stieet.~p,0. Box 403 ~ -°~--- ~ or Po f '` c;~r ~ Girdwood, AK 99587 --------- ~ •. ru ~ 1 ~ 1' • ~ ..• • ~ ~' r- • . V7 ,.,~ . 111 ,~ Page $ ~mCertified Fee ~ •l~J P~GH O~C (Endorsement ~i~ O (Endo~q ~' ~ ~ ` ~ ~ ~ ~'~ m egr,rred) m r-~ (A r' 0~ ~ ~-. ~ ~ 7otat postage & Fees $ S =' ~~ ~° s~,r ro Burr, Pease & Kurtz j ~ge~6 `` x:810 N Street # 1 nc orPOB --------~ Anchora e -------- cq, ~ g , AK 99501 .~ s ..n , , ~o • ~ _ r ,., ~ m ~ Postage $ ~ , ~ 4502 ~ Certified Fee ~ ~ ~ p Return R ° O (Endorse eceipt Fee i rtmnt Required) ~ ~`~ s p ~~-CC G o ~ Restricted (End Defiv¢ry Fee 0 orsementRequired) ~~~ ~ d)~ _r~ Here ~~ ~ ~ Q~rn ~ ~ Total Poste Q ~ , 9e 8 Fees W i 1 ~ 1 ` , ~ ~ ~~ ~ ~"'' ' ~ enrLab Properties I ~~ ~~' nc. 0 o1P5919 77~' Ave SE ~ ps ciry,' Mercer Island WA 98040 ______ ------ Pt~ge ° cer4eed Fee O ° Return Receept Fee (Endorsement Required) ° Restricted Delivery Fee ~! (Endorsement Required) m ~ Total P ostage $ Fees J ~- t\I"eleiS ° sentT° Leo T Kreirlsheimer, Deceased ° (` ~ ~ 10 Harrison St aPoeourA 'cn;; s~i~ ; # 302 ./ Seattle, WA 98104 .I. -' Q N • . 6 ~- - ~ S D-' Postage $ r t17 Certified Fee 0 ~ tmark Po ° Return Receipt Fee ( s Here O (Endorsement Required) , i l t Restricted Delivery Fee ;Endorsement Required) IlJ (1J Total Postage & Fees $ i O ent,Alice Anne Calvert o ~rtee~ 411 University ---------- N or Po Suite 1200 - o'" `Seattle WA 98101 ., a ~ n .. , ~„ • . . - . ~, ~ F` i I ~ -~. .._ u Page $ ~~ ~~ _ .;, a ' ] certified Fee o . ~ Postmark ] Return Redept Fee (Endorsement Required ~ ~ Here 7 n ~ ~ ~ Total Postage & Fees ] Sent To ] (--Cook Inlet Region Inc. ` ~ ~ P.O. Box 93330 ------ .be -coq; siai~ Anchorage, AK 99509-3330 --- - .~ ~a N ,. . ..• .-. a, . ° ~_ D- ° ~ Postage $ Q , PNC H O~ Certified Fee ~ ~ c t ~ ° p Return Receipt Fee (Endorsement Required) a ~ ~ -~t ~ PosfQfprk ~ C Here' ` ~ ° Restricted Delivery Fee (Endorsement Required) t4 W t0 Q~ ~ ~ ~ ° ~ ~:._ ~ `n ~ Total Postage & Fees $ , 6 8666 ~ Sent o Wllllam H arty McDonald o ~i~eer, apr.- 6640 Jollipan Ct ~ -° - ~ °. PO Box City State,-A11Chorage, AK 99507 ----- m ~ f11 ~. • ..- .•. r' ,- -~.~.,..., ~ Postage $ _ , r-R , ~,~ [] Certified Fee t , . ~ ': Q J Postmark ! ^~g t p Return Receept Fee ; ~~ Here (Endorsement Required) , ~ Restricted Delivery Fee m (Endorsement Required) ~ Total $ __~._ Postage 8 Fees 00 Sent TO Winton C. Arnold Jr. / ~` ~4a 10425 N Palisades Way •/ '--"~' "crj; s"ra Boise, ID 83714 ------- U.S. Postal ServiceTti, - CERTIFIED MAILT~n RECEIPT (Domestic Mail Only; No Insurance Coverage Providec N 11 ~, J ~ $ ' ° Certified Fee O Postmark ° Return Recept Fee (Endorsement Requited} t Here ° Restricted Delivery Fee m (Endorsement Required) r3 Total Postage & Fees $ . ~ , ~ ~- ~ ~ ~ ~~~ °° ~"t Rocky Dippel (` o~o-~-' P.O. Box 475 '--"' -city, ;Lehi, UT 84043-0475 -----~- - - , ~ ~ ~ p-• r~ _ ~ ~ ~ 0" O Postage $ ~ ,% rl Certified Fee ~ } _ _~ `'t ' fiJ G Return Receipt Fee + V r _:' ` Postmark Q (Endorsement Required) ` ~ ~ t Here ~ Q Restricted Delivery Fee (Endorsement Required) i`~ 's ~ '. ',~ / r ; O J ~ ~ Total Postage & Fees $ t ~' S. SPC LLC o ~, Attn: K Battley Managing AGT ,~ _ ~ °' 500 L St, Ste 302 Anchorage, AK 99501-5910 .~ o ~ ., ru • ~ _ -. ~ ~ .~~. ~ ~, O Postage $ © ~~ ~ Certified Fee ~ `i Q Return Receipt Fee , ~- } Q (Endorsement Required) ~ ~ Pbstrnark O Restricted Delivery Fee i Here 0 (Endorsement Required) r-3 To[al Hostage & Fees "-i ranna v~ ~ ~ Senr Ti Attn: Debbie Ahlstrom ~ o'PO;1625 Broadway city s Suite 2000 _~----~--~ Denver, CO 80202 - .~ ° _ IT ~ •~ ~ • •~ Rf ~ Postage $ l..~r ~~ ° ~-_ ~ ~ .1 Certified Fee f1J Postmad~, ° Return Receipt Fee ~ ' ~ Here, ° " ° (Endorsement Required) , ° Restricted Delivery Fee (Endorsement Required) r ° ~ ~ Total Postage & Fees ~ , ~ -- r" ent r~ John K Garvey Revocable Trust ~' .. `SYreei: R. H. Garvey Bldg ------- r,- ~~?~ t 300 W Douglas Ave, Ste 1050 cdy, st Wichita, KS 67202-2911 ° ~ , ~n f7J ~. • . . ..• . .-. ~ ,~ ,. .. N «'! ~ Postage $ •~~ r~ Certified Ft>a ° O ~ ~ Postmark ° Return RetAept Fee ~ Here (Endorsement Required) t m (EndorsemeM~R~uired) ~ Totat Postage & Fees ~- ° se»t ro H. Gordon Eccles ° _ '` PoE 14023 Sage Ct ---- - c~~:suMcCall, ID 83638 -'~'- ~. ~' ct] - [~- _. ~ ~_.~ _. ° L } ~ ~~ ~. ° Postage $ ~ S ' ~ , ,- ~ r-R r _, Certified Fee ' fiJ Postmark O Return Receipt Fee 1 + HeB - ° (Endorsement Required) ` ` 4~ T i # ~',° ° Restricted Delivery Fee ~ j ° (Endorsement Required) _<_ ~ Total Postage 8 Fees $ j \ (U Yr 1111CLi11 L. f ,~ Sen"Michael C Renfro ,~ ° -s-~.ee~ 3940 Arctic Blvd. -'-----'-- ° or PO ~` cry ~ Suite 103 -------•-- Anchorage, AK 99503 .~ ~ - n-- ~_ ° Postage $ t CJS _ fLl Certifred Fee ~ . / ~ ~' iC] Return Receipt Fee %~ , {" Postmark ~ a ° (Entlorsement Required) (~ Here ' Q Restricted Oefivery Fee ., '~ - O (Entlorsement Required) ~ ~'~ ' ~ t . ~ Total Postage & Fees ~ ~ t ~ -- Ri Sent ,Polaris Fund LP / ° --S`freet C10 Draper Fisher & Jurvetso/ __________ or PO ,ti ______.2882 Sand Hill Rd, Ste 15 c'"' `Menlo Park, CA 94025 -. , o . - tr .. . . " ~, o, ~' ~ Postage $ ~ - -* ~t ,' '.~ '' , ,. _ ~ Certified Fee ~ b5 '~' _ ~ '~ ~, . , ~; ,~, ~ O O Rstum Receipt Fee (Endorsement Required) ~ ~ ~ ~ . ~i Po ark z~ ;7; Here ~ o ~c ! !! O Restricted Delivery Fee ~' I }. ~ (Endorsement Required) `' T!. t~ tr! ~ Total Postage & Fees ' ~ ~ _. , ..o `Cheri Cathlene Lauder 228 o~ 38050 Hw f --------°°- y cmBrownsville, OR 97327 ------------- ~ •. ..o .. - r` - ..- •. .-. ~- _ tr - ~ ~~ O Postage $ - ~ ri-~, r-9 Certified Fee ~ ' " f11 ~ : '~. O Return Receipt Fee ^ ~ ` posrynark O (Endorsement Required) d Here O Restricted Delivery Fee r O (Endorsement Required) ~ Total Postage & Fees ~ t 3~ .~ Sent ° Cargoil & Gas Co LLC f O ~~~P.O. Box 29750 ~` c;ri; nisi Santa Fe, NM 87592-9450 ----_ Postal ServiceT~., ~TIFIED MAILT~~, RECEIF m ~ T ..:,P e~. ': r t Postage $O t ~ `. Sn , Certified Fee (^ n ~ ~ ' : ~.J / t k P Return Receipt Fee ~ mar os Hen: = ~ ~ Indorsement Required) t ~ 9estricted Defrvery Fee } ,' ~ Inr ment Required) Tota~ r'ostage 8 Fees $ ~ t ,. eOt TT` Debra Robinson ~/ ~~t9333 Memorial Dr # 201 :;ry'siHouston, TX 77024 --------- $ For'I Postage $ (~ ~ ~ .s Certified Fee ~ / _ ~ ICJ ,< Return Receipt Fee (Endorsement Required) ~ ` P~~~ Here Restricted Detlvery Fee (Endorsement Required) Total Postage 8 Feas $ ~ , J iconen n caoie i rust ent To Virginia Breeze, Trustee ~~ 800 F St , f ------- ciry'siaiUnlt P-6 ------- Juneau, AK 99801 Q- .. ~• • . .-. _ . _ ~- , ~ ` Posts e (/T~~ $ .. Certified Fee a ~5 ~ _. f1J O Return Receipt Fee ~ `~ /1 + Postmark Here " ~ (Endorsement Required) ~( ~ ° Restricted Delivery Fee (Endorsement Required) O ~ e & Fees ta T t l P ~ ~ ~~ g os o a . "' John M nt To Robinson -0 9333 Memorial Dr ~--•--- O ~ _ $Yreet, Ap orPOeo,Apt 201 .____ -c-riy" sisie Houston, TX 77024-5735 ~ ~ ~ ~ ~ ~ ~ ~ ~-~ - .~' tI) ~- _ , - . ~ • _ , O Postage $ t.J 1 ~ Certified Fee ~ ~ Postman fLl ` ~ Here' ° Return Receipt Fee ° (Endorsement Requked) ° Restricted Delivery Fee ° (Endorsement Required) , ~ Total Postage 8 Fees ~ ~ .' ~ A N J ~ Sent ° Kathleen Brown ----°- ° ~~~e~~~2410 Marika Circle .____.___ ° or Po E 76308 ~'' c;ry sri Wichita Falls, TX • Reg. Fee $j0~1 ~ ~~~ ~~"~. Handling ~•~ Return ~~ ~ ~ ~ t~l . „ 4 y. ~ ,~,~ ';.,~-; Y' v Charge Receipt r ' i ~. S ax Postage +jj,gp Restricted #Q,QQ 12/13/0? ?~ { E o Delivery o ;• m a° m ~ m Rec ive y '~_ DpmesdC i suranc€ up to t25 600~s~~uded in the tee F C tourer Mu D late With Postal ~~ ~ insurance ~ , . International I~emnity is limited. Full Value $ • Without Postal (gee Reverse). a Insurance `~~ ~ ~ .. - - 's - V O ~/~ \^` ~` ~ \ \ • • \~- a m F ~ ~\ =` E `o ~ m ~ W am c m ~~ ~ ~-,~~ ~ a ~ m ~`\` (~j.. i .. ~` V ~ ~ Z~ ~~ ~ v ~ ~ ~ m m m ~ 1~ .Vt ~ ~ ~ , ~ ~ w w l - \ Q ~ ,~ c ` ~ ~ l PS Form 3806, Recei for R istered Mail Copy 1 -Customer May 2004 (7530-02-000-9051) (See Information on Reverse} For domestic delivery information, visit our website at www.usps.com Date Stamp - 1