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III IIIII III II II ~!, ReScanned III 111111 IIIII II III BY: Maria Date: /s/ Comments about this file: Quality Checked III 111111 III IIlI III 10!6!2005 Orders File Cover Page.doc INDEX CONSERVATION ORDER NO. 618 Wainright 10 and 11 1) March 6, 2009 Department of Interior request for various waivers for the Wainright 10 and 11 wells 2) --------------- Background Information 3) Apri123, 2009 Letter from concerned citizen Harold Lee 4) April 16, 2009 Notice of Hearing, Affidavit of publication, a-mail Distribution list, bulk mailing ADN and Notice of Hearing, Affidavit of publication Arctic Sounder April 28, 2009 S) May 1, 2009 Revised Department of Interior request for various waivers for the Wainright 10 and 11 wells 6) May 1, 2009 AOGCC response to Harold Lee Conservation Order No. 618 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF THE U.S. DEPARTMENT OF THE INTERIOR, U.S. GEOLOGICAL SURVEY for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)) for the proposed Wainwright Nos. 10 and 11 coal bed methane exploratory wells, and for waivers of the following requirements for these wells: bonding requirements (20 AAC 25.025); blowout prevention equipment and diverter requirements (20 AAC 25.035); wellbore survey requirements (20 AAC 25.050(a)(2)); well site seismic survey requirements (20 AAC 25.061(a)); and gas detection requirements (20 AAC 25.066). IT APPEARING THAT: Docket Number: CO-09-11 Conservation Order No. 618 Department of the Interior Coal Bed Methane Exploratory Wells Wainwright Nos. 10 and 11 Wells Wainwright, Alaska June 5, 2009 By letters and permit applications received March 9, 2009, and supplemented March 16 and 18 and May 5, 7, and 16, 2009, the U.S. Department of the Interior, U.S. Geological Survey (USGS) submitted an application (Application) to the Alaska Oil and Gas Conservation Commission (Commission) for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)) for the proposed Wainwright Nos. 10 and 11 coal bed methane exploratory wells, and for waivers of the following requirements for these wells: bonding requirements (20 AAC 25.025); blowout prevention equipment and diverter requirements (20 AAC 25.035); wellbore survey requirements (20 AAC 25.050(a)(2)); well site seismic survey requirements (20 AAC 25.061(a)); and gas detection requirements (20 AAC 25A66). 2. On April 17, 2009, pursuant to 20 AAC 25.540, the Commission published in the ANCHORAGE DAILY NEws notice of the opportunity for a public hearing on May 28, 2009. On April 23, 2009, pursuant to 20 AAC 25.540, the Commission published in the ARCTIC SOUNDER notice of the opportunity for a public hearing on May 28, 2009. 3. On April 23, 2009, a question was submitted to the Commission by a member of the public. The Commission replied on May 1, 2009. 4. No protest to the Application or request for a hearing was received. 5. The public hearing was vacated on May 18, 2009. FINDINGS: The proposed Wainwright Nos. 10 and 11 wells will be onshore, vertical, coal bed methane exploration wells drilled near Wainwright, Alaska. The location of each proposed well is as follows: a. Wainwright No. 10: 1970' FEL, 500' FNL, Section 25, T15N, R32W, Umiat Meridian (UM); and • b. Wainwright No. 11: 2280' FEL, 4310' FNL, Section 24, T1 SN, R32W, UM. 2. The United States is the landowner, as that term is defined in AS 31.OS.170(7), of Sections 24 and 2S, T1SN, R32W, UM. The USDOI, Bureau of Land Management (BLM) administers Sections 24 and 2S. The State of Alaska is the landowner of the offshore acreage adjacent to both sections. The USGS has been designated as the operator of the lands that the Wainwright Nos. 10 and 11 wells are located on. 3. Under AS 31.OS.027, the Commission's authority extends to the land affected by the proposed activities. 4. The City of Wainwright and the proposed wells are located on a narrow-i.e., 4000-foot wide-northeast-trending spit landform that separates the Chukchi Sea from Wainwright Inlet. The existing Wainwright Nos. 1, 2, 3, 4, S, 6, and 8 wells were drilled to the same pool within the city, which is situated along the northwestern coastline of the spit. S. The proposed Wainwright Nos. 10 and 11 wells are designed to test the lateral extent, deliverability, and water chemistry of coal beds underlying the Wainwright area. They will be located along an existing roadway that extends south from the city. The Wainwright No. 10 well will be located near the end of the roadway on the southeastern coastline of the spit, within 1 S00' of the shoreline that separates onshore federal land from offshore State of Alaska land. Wainwright No. 11 will be located near the center of the spit, and it will be the seventh well drilled to the same pool in Section 24, T1SN, R32W, UM. The Wainwright Nos. 10 and 11 wells will be within 3000' of one another, and both wells may be capable of producing from the same pool. 6. Wainwright, Alaska, obtains drinking water from surface water sources according to the Alaska Department of Environmental Conservation, Division of Environmental Health, Drinking Water Program and the Alaska Department of Natural Resources, Water Rights Geographic Information System. These sources are in the northwest quarter of the southwest quarter of Section 9, T31N, R31 W, UM: over 3 miles from the proposed wells. 7. The expected depth of the base of the permafrost in the Wainwright Nos. 10 and 11 wells is about 900 feet. Subsurface aquifers will not likely be utilized for drinking water. 8. USGS is an agency of the United States. The credit of the United States renders a bond unnecessary for the Wainwright Nos. 10 and 11 wells. 9. The proposed wells will be constructed by setting 6-S/8" conductor in a 9-7/8" hole drilled to approximately 80'. For both wells, a 6" hole will be drilled below the conductor to a total depth of about 3000'. USGS plans to use a rotating drill head, which seals around the drill stem and directs the annular mudflow to the pits. If gas is encountered, the rotating drill head functions as a diverter. A similar rotating drill head was used successfully at the Franklin Bluffs No. 1 and the Wainwright Nos. 1, 2, 3, 4, S, 6, and 8 exploratory gas wells. 10. Seismic information obtained near the Wainwright Nos. 10 and 11 wells does not indicate shallow gas. The Wainwright Nos. 1, 2, 3, 4, S, 6, and 8 wells were drilled to depths from 1200' to 1600' without encountering shallow gas or abnormal pressure. In addition, drilling records and mud log information from the next three closest exploration wells-i. e., the Peard Test Well No. 1 well, which is 2S miles east; the Kugrua No. 1 well, which is 30 miles east-southeast; and the Tunalik No. 1 well, which is 37 miles southwest-indicate that, Conservation Order No. 618 Effective June 5, 2009 Page 2 of S • • although some gas was encountered in these three wells within strata less than 3000' feet deep, well control was maintained using drilling mud weighing 10.3 pounds per gallon or less. 11. The Wainwright Nos. 10 and 11 wells will be drilled with atruck-mounted drilling rig. This equipment has no enclosures where sufficient quantities of methane can accumulate to pose a risk of explosion or fire, or where a methane detector can be placed. CONCLUSIONS: 1. The Wainwright Nos. 10 and 11 wells--drilled near Wainwright, Alaska, to explore for coal bed methane-are subject to the Alaska Oil and Gas Conservation Act, 31.05, and the Commission's regulations, 20 AAC 25. 2. The Wainwright Nos. 10 and 11 wells will be located along an existing roadway to maximize well spacing while minimizing impact to the environment. The limited extent of the City of Wainwright's road system and the restricted width of the Wainwright spit make it unfeasable to conform to the well spacing requirements of 20 AAC 25.055 without impacting the surrounding tundra or resorting to winter-time operations. Accordingly, exceptions to the well spacing requirements of 20 AAC 25.055 will allow for drilling, completing, and testing of the wells. 3. A spacing exception to allow for drilling, completing, and testing the Wainwright Nos. 10 and 11 wells will not result in waste, jeopardize the ultimate recovery of hydrocarbons, or jeopardize correlative rights. 4. Granting exceptions to the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 to allow for drilling, completing, and testing the Wainwright Nos. 10 and 11 wells will not likely (a) result in a waste of hydrocarbons; (b) jeopardize the ultimate recovery of hydrocarbons; (c) risk harm to human safety or the environment (e.g., from an explosion or fire); (d) prevent the subject wells from being properly abandoned; or (e) interfere with the correlative rights of persons owning interests in adjoining or nearby tracts of land. 5. The requirements of AS 31.05.030(j)(1)(A) do not apply because the Wainwright Nos. 10 and 11 wells will not be used to produce gas from an aquifer that is a source of water for human consumption or agricultural purposes. 6. The requirements of AS 31.05.030(j)(2)(C) do not apply because the Wainwright Nos. 10 and 11 wells will not be used for regular production of coal bed methane: only limited duration testing is proposed at this time. Also, no known water wells exist in the area of the proposed wells. 7. Approval of the operator's requested exceptions and waivers conforms with AS 31.05.060(c): granting them is more appropriate to the proposed operation than compliance with the subject requirements, and the subject requirements are not necessary or suited to the proposed wells taking into consideration the nature of the operation, the characteristics of the wells, and the Conservation Order No. 618 Effective June 5, 2009 Page 3 of 5 • :J reasonably anticipated risks from granting the exceptions and waivers to human safety and the environment. NOW, THEREFORE, IT IS ORDERED: 1. The USGS's application for exceptions to the spacing requirements of 20 AAC 25.055(a)(2) and (a)(4) to allow for drilling, completing, and testing the Wainwright Nos. 10 and 11 wells is granted. 2. USGS's application for waivers of the bonding requirements of 20 AAC 25.025 for the Wainwright Nos. 10 and 11 wells is granted. 3. USGS's application for waivers of the blowout prevention equipment requirements of 20 AAC 25.035 for the Wainwright Nos. 10 and 11 wells is granted. 4. USGS's application for waivers of the wellbore survey requirements of 20 AAC 25.050(a)(2) for the Wainwright Nos. 10 and 11 wells is granted. 5. USGS's application for waivers of the well site seismic survey requirements of 20 AAC 25.061(a) for the Wainwright Nos. Nos. 10 and 11 wells is granted. 6. USGS's application for waivers of the gas detection requirements of 20 AAC 25.066 for the Wainwright Nos. 10 and 11 wells is granted. 7. The wells may not be hydraulically fractured without the Commission's separate approval. ENTERED at Anchorage, Alaska, and dated June 5, 2009. Conservation Order No. 618 Effective June 5, 2009 Page 4 of 5 • • RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins. to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Conservation Order No. 618 Effective June 5, 2009 Page 5 of 5 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 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 ~~~/ / l~/~ ~c9 Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, June 05, 2009 3:14 PM Subject: co 618 Wainright 10 and 11 wells Attachments: co618.pdf BCC:'Anna Raff; '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 ; caunderwood@marathonoil.com; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'Janet D. Platt'; 'jejones'; 'Jerry Brady'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Kristin Elowe'; 'Laura Silliphant ; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; Melanie Brown; 'Mike Bill'; 'Mike Jacobs'; '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 Winslow'; Pierce, Sandra M (JPO); Rader, Matthew W (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Aaron Gluzman'; 'Dale Hoffman'; Fridiric Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA); Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA) Attachments:co618.pdf; Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) 6/5/2009 ~~ ,. ra N G ~ ! ~ E ~ a Qa ~ E ALASSIA OIL A1~TD GcAS COI~TSERQA'I`IO1~T COM11IIS51O1~T SARAN PALIN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 „r' FAX (907) 276-7542 May 1, 2009 Mr. Harold Lee 3540 Fordham Drive Anchorage, AK 99508 Re: U.S. Dept of the Interior's Applications for Waivers and Exceptions to Drilling Regulations for Proposed Wainwright Nos.10 and 11 Exploratory Wells Dear Mr. Lee: This letter responds to your April 23, 2009 letter to the Alaska Oil and Gas Conservation Commission (Commission) regarding drilling regulation waivers, including exceptions, requested by the U.S. Department of the Interior (DOI) for the proposed Wainwright Nos. 10 and 11 exploratory wells. Specifically, you express concern that a risk exists that the proposed operations will cause physical harm or ecological harm or both by drilling into high pressure zones or an aquifer. And you ask if, in deciding whether to grant the applications, the Commission will give weight to the fact that the applicant is any agency of the United States government. The Commission carefully reviews each permit to drill application to ensure that, consistent with the Alaska Oil and Gas Conservation Act (Act), AS 31.05.005 - AS 31.05.170, and its detailed implementing regulations, 20 AAC 25.005 - 20 AAC 25.990, the proposed operations will not result in waste, reduce the ultimate recovery of hydrocarbons, adversely affect correlative rights, or jeopardize health, safety or the environment, including freshwater. Variances from regulatory requirements are occasionally granted if the operator of the well clearly demonstrates that its proposed alternative techniques, programs, or equipment will be at least as effective as the subject requirements. Waivers, including exceptions, are granted only if the operator demonstrates that compliance with the subject requirements is unnecessary to achieve the objectives of the Act and regulations. In deciding whether to grant a variance or waiver, including an exception, the Commission does not consider whether the applicant is a private person or company or a federal, state, or local governmental entity with one exception: the Commission waives the bonding requirements (i. e., 20 AAC 25.025) for the federal government and State of Alaska given their status as sovereigns. Mr. Harold Lee May 1, 2009 Page 2 of 2 Accordingly, in deciding whether to grant DOI's applications, the Commission will evaluate the risk of physical and/or ecological harm presented by the possibility, if any, that the proposed well would encounter high pressure zones or aquifers or both. And, in response to your question, with the exception of the application for a waiver of the bonding requirements, the Commission's actions on DOI's applications will not be affected by the fact that DOI is an agency of the United States government. If you have any other questions, please contact Mr. Steve Davies, the Commission's senior petroleum geologist working on the subject applications, at 907-793-1224 or steve. davies @al aska. gov. Sincerely, Daniel T. Seamount, Jr. Chairman ~5 TOM MORTENSEN ASSOCIATES, ~.~.C ENVIIZONNIENTAT • PERNIITTING 8L MANAGEN~NT P O. Box 113192 AlvcxoxaGE, ~r .asxa 995 1 1-3 1 92 • 'TEL (907) 345-Sr?S~3" • FAx (907) 345-3575 3 y~v May 1, 2009 Alaska Oil & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 Attn.: Mr. Dan Seamount, Chairman ~~~~~ ~A~ Q ~ zoo9 Kaska !ail l3+ Gas Cons. Commission Ancharatw Re: Requested Exceptions to Well Spacing Provisions, 20 AAC 25.055 The purpose of this letter is to request exceptions to the spacing requiremen#s under 20 AAC 25.055(a){2) and {a)(4) for two proposed coal bed methane explora#ion wells. The wells will be drilled in and near the village of Wainwright. The US Geological Survey as the Operator, in corporation with the Bureau of Land Management and tha Arctic Slope Regional Corporation have submitted applications to AOGCC for Permits to Drill two exploration wells for coal bed methane. The locations of both wells are within or adjacent to the village of Wainwright. Tom Mortensen Associates LLC is responsible for the preparation and submittal of the applications to AOGCC. The two exploration wells will be drilled closer than 3,000 feet from the state submerged lands of the Chukchi.-Sea and Wainwright Inlet. Therefore, a well spacing exception has been requested for the wells. Spacing Exceptions under 20 AAC 25.055(a)(4) for Wells #10 and #11. • Proposed Wells #10 and #11 are located within the village of Wainwright. • The locations of these proposed wells are shown on the attached Figures 1 and 2. Summary of Proposed Wells aryd ~~cations. Well Name and Number: Wainwright #10, (Exploration, Offset Well) WQII Location Are,: North Slope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 25. FNL:500' FEL:1970' NAD83 Lat.: 70°37'49.55"N Long.: 160° 1'29.69"W Wainwright. CBM WeU Spacing F~cem~ion. Page 1 of 4 May 1, 2009 • State Base Plane Coordinates. Zone 6 x-1394054.391 y- 6084073.859 Distance to State Submgr ed Lands: 100' • Well Name and Number: Wainwright #11, (Exploration, Offset Well) V1~eil Location Area: North Siope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 24. FNL:4310' FEL:2280' NAD83 Lat.: 70°38'6.89"N Long.: 160°1'48.34"W State Base Plane Coordinates. Zone 6 x-1393479.238 y- 6085777.762 Distance to State Submeroed Lands;, 1700' Please contact me at 907-345-3400 or via email at tom~mortensen.com if you have any questions, or require any additional information. Sincerely, Thomas W. Mortensen cc: Arthur C. Clark, USGS, Denver. Bob Fisk, BLM, Anchorage. Teresa Imm, ASRC, Anchorage. Wainwright. CBM Well Spaang F~cemption. Page 2 of 4 May 1, 2009 SURVEYED TOWNSHIP HS NORTH,RAN6E 32 WEST OF THE UMIAT MERICIAN, ALASKA STATUS OF PU~.IC DOMAIN LAUD A!p MII~RAL TITLES / nf. aaa. a+ e... a. MTP - ..a...,,sa a ...1 .:.e+. / $UPPI. S•C 24.25. . i . nee.vt~ln+»; PERNNTTED WELLS --~----~ / :.~---...~..,A ..,~ .sex au uMaocs / R[ot.l . S~ YF[. fM1..1 YMr W RJi 001 % ~ , C..p wM~! f • W aaYW ®. / .Y 8H lOly 5~ ~ ~ e ~~ as au., » ~ ~•••, ~•. •• cr / z+ .'~. ewaenraare t,s~_rcRrneReraR_tt~_ '.~..~ ,..ar Aear,~,or, / lr,aa..w ncvu.r .!a !c ....~..~...~ .1.. ~l_.__~ I/ , / 1 K N~l3IHW_/Ar NI `~~~ f lr ~.~ Well #11,Offset Well #10 Offset ~~ .... ~k~ n z~" PROPOSED WELLS #10 surd #11. SURFACE ESTATE OWNER: OLGOONIK GORP. SUBSURFACE ESTATE OV~/NER: FEDERAL,BLM 4Y~IYA~-~..w`a_ Figure #1. f_ocation of Proposed Offset Wells #10-11. Wainwright, Aerial Photo. ,~, pp.•srFW ,,.w -?.~... r..~s.al R _,gpj ~, Wairlwlight. CBM Well Spacing Exemption. Page 3 of 4 May 1, 2Q09 • • Figure #2. Location of Proposed Offset Wells #10-11, Spacing Exemption. Plan View. Wainwright. CBM Well Spacing Exemption. Page 4 of 4 May 1, 2009 MORTENSEN AssOCIATES i.r.C ToM , E~NVI~ RONMENTAL yG 8Z MANAG ~EMEIVT P.O. Box 113192 AivCHOxaGE, ALASKA 995 1 1-3 192 • TEL (907) 345-~9 • Fax (907) 345-3575 3Yro May 1, 2009 State of Alaska Department of Natural Resources Alaska Division of Oii and Gas 550 W 7th Avenue, Suite 800 Anchon~ge, AK 99501-3560 Attn.: Kevin Banks, Director Certified Mail Retum Receipt Requested Re: Requested F~cceptions to Well Spacing Provisions, 20 AAC 25.055 The US Geological Survey as the Operator, in corporation with the Bureau of Land Management and the Arctic Slope Regional Corporation have submitted applications to AOGCC for Permits to Drill two e~la anon wells for coal bed methane. T'h+a locations of both wells are within or adjacent to the Village of Wainwright. Tom Mortensen Associates LLC is responsible for the preparation and submittal of the applications to AOGCC. All both exploration wells will be driNed closer than 3,000 feet to the state submerged lands of the Chukchi Sea and Wainwright Inlet. Therefore, a welt spacing exception has been requested for both wells. The names end locations of the two wells are listed below. A plat is inGuded showing the locations of the wells. The affidavit required under 20 AAC 25.055(c)(3) is incorporated into this letter on page 6. Wel! Name and Number: Wainwrigh# #10, (Exploration, Offset Welt) Well Location Area: North Slope Borough, Airport at Wainwright. Well Location Leoal: MTRS: Umiat T15N R32W, Sec. 25. FNL:500' FEL:1970' NAD83 Lat.: 70°37'49.55"N Long.: 160° 1'Z9.69"VN Wainwright. cBM WeN Sparing Exemption. Page 1 of 5 gay ~, Zoos • • State Base Plane Coordinates. Zone 6 x- 1394054.391 y- 6084073.859 Distance to State Submerged Lands: 100' Well Name and Number. Wainwright #11, (Exploration, Offset Well) Well Location Area: North Slope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 24. FN L:4310' FEL:2280' NAD83 Lat.: 70°38'6.89"N Long.: 160°1'48.34"W State Base Plane Coordinates. Zone 6 x- 1393479.238 y- 6085777.762 Distance to State Submerged Lands: 1700' Please contact me at 907-345-3400 or via email at tom@mortensen.com if you have any questions, or require any additional information. Sincerely, Thomas W. Mortensen cc: Arthur C. Clark, USGS, Denver. Bob Fisk, BLM, Anchorage. Teresa Imm, ASRC, Anchorage. Steve Davies, AOGCC The affidavit required under 20 AAC 25.055(c)(3) is on page 6 of this letter. Wainwright. CBM Well Spacing Exemption. Page 2 of 5 May 1, 2009 • • SURVEYED TOINfgIM- ib NORTM,RANOE 32 NIEST O- TIE UMIAT MERIQIAN. ALASKA stares or rua.k oowre wn awo rs+Etui~. mss J •af. .u. s ... a. ~P -- wr.yr n r n ~uo+ ~ S•r ~. ~ PERIIAT"rED WB.48 ------~~ i f ' ~- ~........,, ..:,~ ~ «.~..w. r.e .. _ v~. ....... ~ ~. a.. -_ _ •.~ W M s~. 1 / :w PC~z'' a / ~ µ rr;•~1 ~ ~.~ •~ `+ ~ !1 - IYt.YEO[s.l/~ftfl.trru s m r ffir~Onll- 1MM-eM~.MI. /~! E!Altl:.. ~ / ~r.«.w . •~ miaaa~ro.eu+~le l.P.~BR.IR!4~--._ ....,,. I ~. gM~fN.rM~~Ariw_I,f1- r _..... -'----- f i. ~- :_~ .. _ . d~ - ,., -- .._.~._ __... .. _. ____ 1 __ _ ~ Well #ll,Offset _.~__-" .:- - _ -_ , +- ~~ ~ Well #IU offset ~ .__ "'" - --- / _ a ----_.. --- -- ~` ! ., :~~ ~.~ ESTATE OWNER: C CORP. SCE ESTATE OV~INER: BLM ~, ~w ,~. R..]L! Figure #1. Location of Proposed Offset Wetls #10-11. Wainwright, Aerial Photo. wacrnmarlc. caM W~11 Spaang E~nlption. Pagt 3 of 5 May 1, 2009 • '.~~'_"~~'dCt€3 !' 3 , d~ ~ ~ f o i 4... i ~ .. ~~ t :. _ .. .f f Figure #2. Location of Proposed Offset Wells #10-11, Spacing Exemption. Plan View. Wainwright. CBM Well Spacing Exemption. Page 4 of 5 May 1, 2009 STATE OF ALASKA ) ss.: THIRD JUDICIAL t~STRICT ) AFFIDAVIT OF THOMAS WILLIAM MORTENSEN I, THOMAS WILLIAM MORTENSEN, being fmst duly sworn urxier oath, make the following statements: I am acquainted with the facts of the above described proposed exploration watts, and I am verifying that ail facts are true to the best of my knowledge, and that the plats correctly portray the pertinent and required data. l swear or affirm under penalty of perjury that my statements in this Affidavit are true to the best of my knowledge and belief. ~~ l~U~~ THOMAS WILLIAM MORTENSEN On the S~~ day of,~A;,~„~in the year 2009 before me, the undersigned, persaiatly appeared THOMAS WILLIAM MORTENSEN, personally known to me or proved to me on the basis of satisfactcxy evidence to be the irual whose name is subscribed above. S bscribed and sworn to or affirmed before me at Anchorage, Alaska on 2009. ~~ ~, NOTARY * I'LIBLYC Notary Pu c in for a tat of Alaska. My commission e~ires 1 ~'*Jie t, ~_~ WafnwrigM. C8M We11 Spacing Exemption. Page 5 of 5 May 1, 2009 • • TOM MORTENSEN ASSOCIATES, LLC ENVIROrJ1VME1V'TAL PERMITTING 8t MANAGEMENT P.G. Box 113192 AivcxoiraGE, ALASKA 99511-3192 • TEL (907) 345-~ • FAx (907) 345-3575 3~1ed May ~, 2009 U.S. Department of the Interior Bureau of Land Management Division Of Resources 222 W. 7"" Avenue, #13 Anchorage, AK 99513-7~4 -ttn.: bob Fisk, Branch Chief Energy and Solid Minerals Cer#ified Mail Return Receipt Requested ~. Re: Requested Exceptions to Well Spacing Provisions, 20 AAC 25.055 The US Geological Survey as the Operator, in corporation with the Bureau of land Management and the Arctic Slope Regional Corporation have submitted applications to AOGCC for Permits to Drill seven exploration weds for coal bed methane. The locations of all seven wells are within or adjacent to the Village of Wainwright. Tom Mortensen Associates LLC is responsible for the preparation and submittal of the applications to AOGCC. Wells Wainwright #10 and #11 will be drifted at locations where BLM manages the subsurface. The names and locations of the two weNs are listed below. A aerial map view with a plat overlay is included showing the locations of the wells. The affidavit required under 20 AAC 25.055(c)(3) is incorporated into this letter on page 5. 1Nell Name and Number. Wainwright #10, (Exploration, Offset Weil) 11Vett Location Area: North Slope Borough, Airport at Wainwright. Well Location Leoai: MTRS; Umiat T15N R32W, Sec. 25. FNL:500' FE1:1970' NAD83 Lat.: 70°37'49.55"N Long.: 160° 1'29.69"W wainwright. cBM WeN Sparing F~cemption. Page 1 of 5 May 1, 2008 • • State Base Plane Coordinates. Zone 6 x-1394054.391 y- 6084073.859 Well Name and Number. Wainwright #11, {Exploration, Offset Well) Wel! Location Area: North Slope Borough, Airport at Wainwright. Well Location Leal: MTRS: Umiat T15N R32W, Sec. 24. FNL:4310' FEL:2280' NAD83 Lat.: 70°38'6.89"N Long.: 160°1'48.34"W State Base Plane Coordinates. Zone 6 x-1393479.238 y- 6085777.762 Wainwright. CBM page 2 of 5 Well Spaying Exemption. May 1, 2009 • • SURVEYED 71D'WNSNIP Kf NORTN,RANGE 32 MIEST OF THE UMIAT MERIDIAN, ALASKA soTVa aF rueuc oo~rw wie as wriewu. trt~a p>,fP M /s i~ ~~ ` ~.- ~.M H v N ~iNil ~ ti,weMti ir~li ~ 2+ Ihl~l . 1t PERMITED WELLS -~-"'~~/~ :.•-.::~„ ; :_;, •••• '° / ~ Y iM 01~ MIY~ Y~ / w sw alY / ... --~ - 5k / P iJ+ a / ~ 2TP_. _ e~r~~ / . „tea..,.. ~,~~~,.~ 4~ ~ y~..~...i mmsc.rcw.ralrra._a~a*,..._ ~ -•-s••. .... % - r - /lv - --.. .. -__.. ~ Well #ll,Offset -- ~~ / Well #10 Offset __ _ _._ _- / - -- i -- -- .. . --- ---- ~ ~' s-- ~ 1 i KMt i:...? ~L1_y_._.m ESTATE OWNER: CORP. 4CE ESTATE OU IMER: BLM Figure #1. Location of Proposed Offset Wells #10-11. Wainwright, Aerial Photo. ,~, ~.. . • _ :~ A Wainwright CBM pa 3 of 5 WeN Sparing Examphion. g° May 1, 2009 • • Please contact me at ~7-345-3400 or via email at tom~mortensen.com if you have any questions, or require any additional information. Sincer+ey, ~~ l~Y~ Thomas W. Mortensen cx: Arlhur C. Clark, USGS, Denver. Teresa Imm, ASRC, Anchorage. The affidavit required under 20 AAC 25,055(c)(3) is on page 5 of this letter. Wairn~rtigM. C6M pe 4 of 5 WeW gpacing Exemption. 9e May 1, Z0~ • • STATE OF ALASKA ) ~' THIRD JUDICIAL DISTRICT) AFFIDAVIT OF THOMAS WILLIAM MORTENSEN I, THOMAS WILLIAM MORTENSEN, being frost ~Y swam under oath, make the following statements: 1 am acquairrted with the facts of the above described proposed exploration wells, and 1 am verifying that all facts are true to the best of my knowledge, and that the plats canedly portray the pertinent and required data. ! swear or affirm under penalty of perjury that my statements in this Affidavit are true to the best of my knowledge and belief. l,1 C~tJ~ /~~~,~. THOMAS WILLIAM MORTENSEN On the S'L1f day of in the year 2009 before me, the undersigned, persors~lly appeared THO WILLIAM MORTENSEN, personally known to me or proved to me on the basis of satisfactory evidence ~ be the ~ whose Warne is subscribed above. S bscribe and swum to or affirmed before me at Anchorage, Alaska on 2009. R~' Notary Pub c in for State of Alaska. * ~18LIC My commi Tres ~*~ WaimkrigM. CBM Weil Sparing Exemptiw~. Page 5 of 5 May 1,2049 Project Description an~verview Alaska Rural Energy Project Wainwright, Alaska, 2009 The Alaska Rural Energy Project is currently conductng a multi-well production test in Wainwright at the same location (Olgoonik Wareyard) as where exploration and testing activities occurred in June-July 2007. All wells have been be completed in an 8 ft coal seam encountered at a depth of 1242 to 1250 ft. The test array consists of one central production well (10" hole with 6" steel casing cemented to 1240 ft, 6" open-hole completion through the coal zone) and 4 monitor wells (6" hole with 2.5" PVC casing, 10 ft of slotted PVC screen in the coal, sand packed around screen, annular area grouted (abandonment bentonite and cement) to land surface). Additionally, a separate well (which is currently permitted) will be drilled at the Wainwright landfill. Two additional off-set wells (proposed Wainwright #10 and #11) will be drilled during the summer 2009 season. For all three off-set wells a 6 inch steel surface casing will be set and cemented to a depth of ~50 ft and a 6 inch open hole drilled to a depth of 1500-2000 ft. Core samples will be collected from the 1242-ft coal bed and associated roof and floor rock. Geophysical logs (caliper, resistivity, gamma, density, sonic) will be run in the well and permeability tests will be conducted after which the wells will be plugged and abandoned with bentonite grout and cement. The following information will be gathered from these wells: • Lateral extent and continuity of individual coal seams between original site and landfill site (~ 2 miles), and the airport runway in Wainwright. • Confirm gas content of the 1242-ft coal bed Accurate determination of hydraulic conductivity and transmissivity • Storage coefficient (amount of water to be produced) • Detailed produced water chemistry Drilling is scheduled to begin on or about June 1, 2009 and completed on or about August 10, 2009. The first well drilled will likely be the landfill well. Exact start and finish dates for each well cannot be accurately predicted at this time. The offset wells will be abandoned in 2009. AOGCC Permit t® ®rill. F~rrn 10401, Wainwright #10 March 065 20095 Page ~ ®f 2s Davies, Stephen F (DOA) From: Tom Mortensen [tom~mortensen.comj Sent: Monday, May 04, 2009 1:44 PM To: Davies, Stephen F (DOA) Cc: Arthur C Clark; Teresa Imm; Bob Fisk; Greg Noble Subject: Wainwright CBM. ADEC ODPCP Exemption request for proposed Wells #10 and 11. Attachments: ADEC ODPCP Exemption Request 5-01-09.pdf; ATT137830.txt -. ,~ ADEC ODPCP ATT337830.bct templion Request 5, (248 B) Steve, all: Attached is your copy of the ODPCP exemption request sent to ADEC for the proposed Wainwright CBM Wells #10 & #11. Tom Mortensen 908-345-3400 1 Office Project 21 May 2009 INPUT OUTPUT Geographic, NAD83 State Plane, NAD27 5007 -Alaska 7, U.S. Feet Accuraaes of conversions from NAD 83 to NAD 27 are typica~y 12 to 18 cm. Wainwright #8 1r2 Latitude: 70 38 36.96 NOrthinglY: 6089151.859 Longitude: 16o O1 28.28 Easting/X: 940204.873 Convergence: 1 52 01.64330 Scale Factor: 0. 9 9 9 9 655 41 Datum Shift (m.): Delta Lat. = 57.457, Delta Lon = -126.351 Wainwright #11 ~ Latitude: 70 38 06.89 NOrthing/Y: 6086074.147 LongRude: 160 O1 48.34 Easting/X: 939627.832 COilvergenCe: 1 51 4 2.3 6 5 8 9 Scale FaCtOf: 0.999965226 Datum Shift (m.): Delta Lat. = 57.508, Delta Lon = -126.341 ~r ~x iii ~-~~ ~~t~~~ r~~~~~~~ 3~7 ~ ° s 7 ~ ' ~, ~~ ~ ~ /j= ~ r~2 Remark: Corpscon v6.0.1, U.S. Army Corps of Engineers SURVEYED TflWNSH1P 15 NORTH,RANGE 32 WEST OF THE UMfAT MERIDIAN, ALASKA STATUS Ui PUBLIC DOMAIN LAIC ANfl MINERAL TITLES j zlaa ^sz. w Wae. as ~~' +.t.,.rt~,.t .t ,,..x t:a$>, / SUPPL. Ss_r. 24.23 sza&wSia. ^.ii i _ - Ittit~i S! u :.,F....,..~.. w~tearlag rai PERMITTED WELLS ~ ' ~~ {'~ / laxal bl iLy Yili Osip ~~' P~Sk Cary a!!T / YLII 8Gt D4•.iy ~ j'•~ rn ra+ ..• w , d,. ~,4 ~ ~~ ~ ,~ ..,a. ~ ,~ _.._.~. .____. ,f.~ w u ww ..r ~ ~ m ua .CAd_P~y1M' (r~G`.?1Yy. n P?Df!Ll?9,...C{FT-~'! :xw~. :«,.. ~ 1 : / ~A , •.=~i /~ ~y¢~,Arrn~O LA.1Y'f Mff~Rl'MN l.MA1'. CRA$SI~ L ;palna rtg6x { j J J w~ ara .[~Cn. laN~f^r 1J w `t ?_ 1~'JR~'~ wrel[~ye~R~€F Mww"drpse err dF' ,y, AA'' J, !'QI/df i 1 t.l " (~.YT ~ { t { EI a-seCtlawroaes OnC CtieCN rs ° C ~~,.1.fi9,M.ONf Yy~u91 M 1N r/ 1 j d Fn s+Nrt E Rr V!!w+,r.,i .eN j-' ' tY N-£?A »ai.WS_x _a.r. Ai X ;+3 ~ / ~~ ~~ ~.. +eu,t4i eufr96 I i' \ ~. ~• _... i ~ J I (. ..~ ~ _~ .~~aa t. ~b 11 _ f,Y ~~, Well #11JOffset Well ##10 Offset M pJnrripiAF irpd • ~~ n~ rtrr 25 ! .. wow e.. ~~ ~?AF' /t~ I~~k~ Rid Gas ~~~M. ~missia~ An~l~orap> s lfAiF R,-.~3 7-~-aa {p mans 4 ~. M PROPOSED WELLS #10 and #11. SURFACE ESTATE OWNER: OLGOONIK CORP. SUBSURFACE ESTATE OV~INER: FEDERAL, BLM •#~dll~ d411M11A n. w . a..,.......r+ ~ r.s. r a.......+ •.L bww a. ..r Y rwM ~m dw an ~~` rJ~..~.. .{++F* rlM .gal Ww hww M~F. r b ~N ~wM ISM ++~ ~{ -- ._~ R r~ C ~ 4 STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRE F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M 907-793-1238 o The Arctic Sounder 301 Calista Court, Suite B Anchorage, AK 99518 AGENCY CONTACT PHONE DATE OF A.O. April 15, 2009 PCN DATES ADVERTISEMENT REQUIRED: Apri123, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchora e AK 99501 REF TYPE NUMBER AMOUNT 1 VEN z A1~ 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 2 _ ~ PAGE 1 OF TOTAL OF 2 PAGES ALL PAGES$ COMMENTS LC ACCT FY NMR oisr 73451 DIVISION APPROVAL: 02-902 (Rev. 3/9~ Publisher/Original Copies: Department Fiscal, Department, Receiving NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~O_02914025 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I"~ ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE DATE AO.FRM ~; • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Applications regarding the proposed U.S. Department of the Interior Wainwright Nos. 10 and 11 Coal Bed Methane exploratory wells of the U.S. Department of the Interior, U.S. Geological Survey for waivers of the bonding requirements (20 AAC 25.025), blowout prevention equipment requirements (20 AAC 25.035), wellbore survey requirements (20 AAC 25.050(a)(2)), well site seismic survey requirements (20 AAC 25.061(a)), and gas detection requirements (20 AAC 25.066), and for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)); and possible establishment by the Alaska Oil and Gas Conservation Commission of a drilling unit for North Slope Borough Wainwright leases (20 AAC 25.055(a)). By letters and permit applications received March 9, 2009, and supplemented March 16 and 18, 2009, the U.S. Department of the Interior, U.S. Geological Survey (USGS) applied to the Alaska Oil and Gas Conservation Commission (Commission) for waivers of the following requirements for the proposed Wainwright Nos. 10 and 11 CBM exploratory wells: bonding requirements (20 AAC 25.025); blowout prevention equipment and divert requirements (20 AAC 25.035); wellbore survey requirements (20 AAC 25.050(a)(2)); well site seismic survey requirements (20 AAC 25.061(a)); and gas detection requirements (20 AAC 25.066). USGS also applied for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)) for the proposed Wainwright Nos. 10 and 11 wells. Also, pursuant to 20 AAC 25.055(a), the Commission will consider establishing a drilling unit for North Slope Borough Wainwright leases. The locations of the proposed vertical wells are as follows: Wainwright No. 10: 1970' FEL, 500' FNL, Sec. 25, T15N, R32W, Umiat Meridian (U.M.) Wainwright No. 11: 2280' FEL, 4310' FNL, Sec. 24, T15N, R32W, U.M. The Commission has tentatively scheduled a public hearing on this application for May 28, 2009 at 9:00 a.m. at the Commission: 333 West 7`" Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on May 11, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907-793-1221 after May 15, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on May 26, 2009, except that, if a hear- ing is held, comments must be received by the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, call 907-793-1221 by May 25, 2009. Cathy . Foer ter Comm ssion • • ALASKA NEWSPAPERS INC.~~ 301 CALISTA COURT, SUITE B ANCHORAGE, ALASKA 99518-3028 1~~~~ ~ 0 ~~'~ x(907) 272-9830 x(907) 272-9512 c°~task~ Oil dos ~or~~ ~o~issio~ SOA/AK Oil & Gas Conservation ~~~®~~~ Commission Date: Apri128, 2009 Attn: Jody Colombie CASE/PO/AIO: 333 W. 7th Ave, Ste 100 INVOICE(S) :040900366008 Anchorage, AK 99501 PAPER: Arctic Sounder AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ALASKA, TH1RD DIVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED CARLA CARRICO WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT SHE IS THE ACCOUNTING TECHNICIAN FOR: THE Arctic Sounder, PUBLISHED AT ANCHORAGE 1N SAID DIVISION THREE AND STATE `OF ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED 1N SAID PUBLICATION ON 4/23/2009 AND THEREAFTER FOR A TOTAL OF 1 CONSECUTIVE ISSUE(S), THE LAST PUBLICATION APPEARING ON 39926, AND THAT THE RATE CHARGED THEREON IS NOT 1N EXCESS OF THE RATE CHARGED TO PRNATE INDIVIDUALS. T A11 FT i tiiY33 NOTARY .~ , P~JBLIC ~ ~ ~ ~ ~~-..S/~ CARI,A i ARRICO ACCOUNTING TECHNICIAN, ALASKA NEWSPAPERS SOKCI~ MY CO AND SWORN TO ME ON April 28, 2009 SIGN EXPIRES ON DECEMBER 1, 2012 r • ~- an orderwitfiout a hearing. Tp learn if the s Commission wilthold a hearing, call907-793- f 1221 after May 15, 2009. i Written comments regarding the application may be submitted to the Commission at'the address above. Comments must be received by 4:30 p.m: on.May 2$, 2009, except that, if ' a hearing_is held, comments .must be. received by the conclusion of the hearing: If, because of a disability, special acx:ommo- 'dations may be needed to comment or attend LEGAL NOTICE ~ the hearing; ca11907-793-1221 by May 25, Notice of Public Hearing STATE OF ALASKA 2009. Cathy P. Foerster, Commission Alaska Oii and Gas Conservation Published 04/23/09 1314884 04!23) Commission _ Re: Applications regarding the proposed U.S. Department of the lnteripr Wainwright Nos. 10 and 11 Coal Bed Methane exploratory wells of the U.S, Departmentof the lnteripr , - U.S. Geolpgical Survey for waivers of the bonding requirements (20 AAC 25.025), blowout prevention equipment requirements (20 AAC 25.035),°welllx>re survey require- meats (20 AAG25.050(a)(2)), well site seis- micsunreyrequirements (20 AAC 25.061(a)); ' and gas detection requirements (20 /fiAC 25.066), and fpr exceptions to the Spacing requirements. (20 AAG 25.055(a)(2) and (a)(4)); and possible establishment by the Alaska Oil and Gas Cpnservation -Commission of a drilling unit for North Slope Borough Wainwright leases (20 AAC 25.055(x)). By letters and permit applications received March9, 2009, and supplemented March 16 and 18, 2009, the U.S: Department of the Interior,` U.S. Geological'Survey (USGS) applied tp the Alaska Oil and Gas Conservation Commisson (Commission) for waivers: of the fo0owing requiremerts for the ` proposed Wainwright Nos. 10 and 11 CBM exploratory wells: bonding requirements (2© AAC 25:025); blowout prev~tion equipment and divert requirements (20 AAC 25.035); welibore survey requirements (20 AAC 25.05t)(aZ(2~weH site. ~isrriic surv~c regq~~tents (~ aA1;~;:end gas ' detection requirements (20 AAC 25.066):' USGS also applied for exceptions to the spacing.requirements;(20AAC25.055(a)(2) and (a)(4)) for the proposed Wainwright Nos: - 10 and 11 wells. Also, pursuantto 20 AAG 25.055(x), the Commission will consider establishing a drilling unit: for NprthSlope Borough Wainwright Ieases:The Ipcations of the proposed vertipal wells-areas follows:.. Wainwright No. 10: 1970'. FEL, 500' FNL, Sec. 25, T15N, R32W, lJmiat Meridian (U.M.): Wainwright No. i1: 2280' FEL, 431U' FNL,' Sec. 24, T15N R32W, U.tvf The Commission has tentatively scheduled a public hearing onthis application for Maq 28; 2009 at 9:00 a.m. at the Commission: 333 West'71h Ave., Suite 100, Anchorage, AK 9950E To request that the hearing. be held, a written request must be filed 6y 4:30 p.m.' on May ii, 2009. If a request- is not timely .filed, the Commission may consider the issuance of • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02914025 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /'1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7~' Avenue. Suite 100 Anch~rage_ AK 9951 M 907-793-1238 T The Arctic Sounder 0 301 Calista Court, Suite B Anchorage, AK 99518 AGENCY CONTACT I DATE PHONE IPCN DATES ADVERTISEMENT REQUIRED: Apri123, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. AFFIDAVIT OF PUBLICATION United states of 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 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, 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 2009, Notary public for state of My commission expires . STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS 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 DATE OF A.O. April 15, 2009 Jod Colombie PHONE PCN DATES ADVERTISEMENT REQUIRED: April 17, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ 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 z Alz~ 02910 FIN AMOUNT SY CC PGM ~ 08 02140100 PAGE 1 OF I TOTAL OF 2 PAGES ALL PAGE LC ACCT FY NMR DIST 73451 DIVISION APPROVAL: 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O_02914024 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ~'1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO.FIUVI • ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Applications regarding the proposed U.S. Department of the Interior Wainwright Nos. 10 and 11 Coal Bed Methane exploratory wells of the U.S. Department of the Interior, U.S. Geological Survey for waivers of the bonding requirements (20 AAC 25.025), blowout prevention equipment requirements (20 AAC 25.035), wellbore survey requirements (20 AAC 25.050(a)(2)), well site seismic survey requirements (20 AAC 25.061(a)), and gas detection requirements (20 AAC 25.066), and for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and. (a)(4)); and possible establishment by the Alaska Oil and Gas Conservation Commission of a drilling unit for North Slope Borough Wainwright leases (20 AAC 25.055(a)). By letters and permit applications received March 9, 2009, and supplemented March 16 and 18, 2009, the U.S. Department of the Interior, U.S. Geological Survey (USGS) applied to the Alaska Oil and Gas Conservation Commission (Commission) for waivers of the following requirements for the proposed Wainwright Nos. 10 and 11 CBM exploratory wells: bonding requirements (20 AAC 25.025); blowout prevention equipment and divert requirements (20 AAC 25.035); wellbore survey requirements (20 AAC 25.050(a)(2)); well site seismic survey requirements (20 AAC 25.061(a)); and gas detection requirements (20 AAC 25.066). USGS also applied for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)) for the proposed Wainwright Nos. 10 and 11 wells. Also, pursuant to 20 AAC 25.055(a), the Commission will consider establishing a drilling unit for North Slope Borough Wainwright leases. The locations of the proposed vertical wells are as follows: Wainwright No. 10: 1970' FEL, 500' FNL, Sec. 25, T15N, R32W, Umiat Meridian (U.M.) Wainwright No. 11: 2280' FEL, 4310' FNL, Sec. 24, T15N, R32W, U.M. The Commission has tentatively scheduled a public hearing on this application for May 28, 2009 at 9:00 a.m. at the Commission: 333 West 7`h Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on May 11, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907-793-1221 after May 15, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on May 26, 2009, except that, if a hear- ing is held, comments must be received by the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, ca11907-793-1221 by May 25, 2009. ~~ Cathy . Foer ter Comm scion 4/ 17/2(NYl Anchorage. Daily News - Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 623503 04/17/2009 02914024 STOF0330 $265.60 $265.60 $0.00 $0.00 $0.00 $265.60 STATE OF ALASKA THIRD JUDICIAL DISTRICT Shane Drew, being first duly sworn on oath deposes and says that he 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. Signed C~litn..L_ Subscribed and sworn to me before this date: ~~~~:~ ~ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alas/ka MY COMMISSION EXPIRES: / ~, /' m®® , y /8 ®® ~+ ~ a ~~B~L,V 1 •'~~~"o~ a~y~. ~~~ __ Notice of 1?ubiic Heating STATE OF ALASKA Alaska Ofl and Gas Conservation Commission ke: Applications regarding the proposed U.S: Depertment of the lnterwr Wakfwright Nfu. 10 and 11 Coai eed Methane expkxatory wells of the US:bepartment of theinterior, U S. Geobgical Survey for waivers of the bonding requirements (20 AAC z5.025),blowouf prevention eeqquipment requrcements (20 AAC 2s.o35), wellbore survey requirements (20 ~. aAC zs.i)so(a)(2))), well site seismic survey requirements (2Q AAC 25.061(a)), and gas detection requiternents (20 AAC 25.068), and for exceptions to tht: spacmSg requirements (20 AAC 25.055(a)(2) and {a)(4)}; and possible establishment by the Alaska Oil and Gas Conservation Gommissiort of a drilling unit for North Slope Borough Wainwrightleases (20 AAC 25.055(aN. By letters and permit applications received fJlsrch 9, 2009, and suppnted March 16 and 18; 2009, the u s, rtment.of.the Interior, u.S. Geological Survey uSGS) applied to the Alaska oil and Gas Conservation Corrlmissio~ (Commission) for wpivers ofthe following requirements for the" proposed Wainwright Nos. 10 and 11 CBM ' exploratory wells: bonding reg4tiremenls' (20 AAC 25.025);"blowout preverrtioh equipment"and divert 'requirements (20 AAC 25.035); gveilbore survey .requirements (20 AAC 25.050(a)(2)); welisite seismic survey requlrement5(20AAC 2S.oblie)); and ggaas detection requirements (20 AAC 25.06: USES also appf[ed for exceptions to the spacfhg requirements : (ZO.AAG 2S.OSS(a)(2}and (a)(4)) for the proposed Wainwright Nos. 10 and 11 wefts_ AfSO, pursilantt0 20 AAC 25A5S(~) the Commission will consider establishing a dnllgng unit for North slope Borough Wainwright leases. The locations of the proposed vertical wells are as follows: Wainwright No. 10i 1970' FEL, S00' FNL, Sec. 25, T15N, R32W, Umiat Meridian N•Md Wainwr~t~t No. 11: 2280' FEL; 4310' FNL, Sec. 24, T15N, R3~W, O.M. ' The Commission hasientatively scheduled a public hearing on this appificetion for May 28, 2009 at 9:00 a.m. at the Commission: 333 WestZth Ave.; Suite 100, Anchorage, AK 99501, To request that ttae hearing:be held; a written request must be tiled by 4:30 p.m. On May 11, 2009. H a request is not timely filed, tt~~Commission may considerthe issuance of an orderwithouta " hearing. io learn if the Commis ion will hold e hearing, Cat1 907-793-.1221 after May ~5, 2009: ~Nritten comments re e a tSOn may be submitted to the Comg m ~ tt~adfress above. Cpmments must be re ~y 4:30 m. on May 26, 21109, except that, If a hearing iP held; canment§ must be received by tnE tx3nt`,)u5ion of the hearing. 1f; because of a disability, special. accommodations may be needed: to comment or attend the hearing, call 907-793-1221 by May 25, 2009. - Cathy P FgerSter ~ COnUni5Sl0ner AO-02914024 Published: April 16, 200,9 ~i s STATE OF ALASKA I NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02914024 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE 30TTOM FOR INVOICE ADDRESS F AOGCC R 333 West 7`" Avenue. Suite 100 ° Anchorage. AK 99501 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT DATE OF A.o. PHONE PCN 17V/1 /7.7 -IGGl DATES ADVERTISEMENT REQUIRED: April 17, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of division. AFFIDAVIT OF PUBLICATION REMINDER Ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. 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 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, 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 2009, Notary public for state of My commission expires , Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, April 15, 2009 3:20 PM Subject: Public Notice Wainwright 10 and 11 Attachments: Public Notice Wainwright 10 and 11.pdf BCC:'Anna Raff; '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'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross ; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L (DNR); 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; '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; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; Melanie Brown; 'Mike Bill'; 'Mike Jacobs'; '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 Winslow'; Pierce, Sandra M (JPO); Rader, Matthew W (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; Thompson, Nan G (DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Aaron Gluzman'; 'Dale Hoffman'; Fridiric Grenier; 'Gary Orr'; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B .(DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA) Attachments:Public Notice Wainwright 10 and l l.pdf; Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-1221 (phone) (907)276-7542 (fax) 4/15/2009 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 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 • f Gci' B nir~~ f'ub~i~ It~tic~ ~t~~t~° ~f .~It~~k~~ • Public Notices Alaska Oil And Gas Conservation Commission Submitted by: jjcoiombie/02 Date Submitted: 04/15/2009 03:26 PM Date Modified: Ak Admin Journal: [not printed] Attachments: No files attached Alaska Oil And Gas Conservation Commission Category: Public Notices Publish Date: 04/15/2009 Department: Administration Location: Anchorage Coastal District: N/A Body of Notice: Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Applications regarding the proposed U.S. Department of the Interior Wainwright Nos. 10 and 11 Coal Bed Methane exploratory wells of the U. S. Department of the Interior, U.S. Geological Survey for waivers of the bonding requirements (20 AAC 25.025), blowout prevention equipment requirements (20 AAC 25.035}, wellbore survey requirements (20 AAC 25.050(a)(2}}, well site seismic survey requirements (20 AAC 25.061(a}}, and gas detection requirements (20 AAC 25.066), and for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)); and possible establishment by the Alaska Oil and Gas Conservation Commission of a drilling unit for North Slope Borough Wainwright leases (20 AAC 25.055 (a))~ By letters and permit applications received March 9, 2009, and supplemented March 16 and 18, 2009, the U.S. Department of the Interior, U.S. Geological Survey (USGS) applied to the Alaska Oil and Gas Conservation Commission (Commission) for waivers of the following requirements for the proposed Wainwright Nos. 10 and 11 CBM exploratory wells: bonding requirements (20 AAC 25.025); blowout prevention equipment and divert requirements (20 AAC 25.035); wellbore survey requirements (20 AAC 25.050(a)(2)); well site seismic survey requirements (20 AAC 25.061(a)); and gas detection requirements (20 AAC 25.066). USGS also applied for exceptions to the spacing requirements (20 AAC 25.055(a)(2) and (a)(4)} for the proposed Wainwright Nos.10 and 11 wells. Also, pursuant to 20 AAC 25.055(a), the Commission will consider establishing a drilling unit for North Slope Borough Wainwright leases. The locations of the proposed vertical wells are as follows: Wainwright No. 10: 1970' FEL, 500' FNL, Sec. 25, T15N, R32W, Umiat Meridian (U.M.} Wainwright No. 11:2280' FEL, 4310' FNL, Sec. 24, T15N, R32W, U.M. The Commission has tentatively scheduled a public hearing on this application for May 28, 2009 at 9:00 a.m. at the Commission: 333 West 7th Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on May 11,2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907-793-1221 after May 15, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on May 26, 2009, except that, if a hearing is hmments must be received by the conclusion o~earing. If, because of a disability, special accommodations may be needed to wmment or attend the hearing, call 907-793-1221 by May 25, 2009. Cathy P. Foerster Commission Revision History: 04!1512009 03:26;20 PM by jjcolombie/021State(Alaska/US Home Page Notices by: Department ~ Category ~ Publish Date ~3 :7 ~P~ ~ 7 20~1~ S ~'_'~TE O~ ALAS" ,r~ Alaska C-il and :=as Conservation Commission ;",18&~~ ~-18+ ~8S ~0t1~. ~Q~'M(Itl&~ion 333 ;~aest 7th Avenue An~h+araQ Anchorage, .Alaska 99501 April 23, 2009 Reference; ivotice of Public Hearing Regarding L',S. Dept of Interior request for variance to drilling regulations, on Coal Ded methane ''>yiells, ~Iainwright Nos 10 & 11. 2ir. Dan Scemount Commissioner, In discussion with mr. Steve 7avies concerning the above referenced request for a varience to the published drilling regula~aons, I was ddvised that the request was not unusual as previous wells in this area had been drilled in a like manner. I•~iy concern is that there exists the risk of drilling into higher pressure zones or an aguafier which could not be contained. `here by creating either or both physical harm and or ecological harm. i~iy question to you is, `zJould you grant the same variences to an independent operator or major company, not partnered with the United States ~~overnment ? Respectfully, Harold D , Lee ~~~~'~(~ 7" / 3540 I'ordham Dr. ~'inchorage, Alaska 99508 cc ~r. Steve Davies L.Lo% DONE ORDER: ~b ~ ~ c~.cr~~ - . ~CC~ ,-- ~~~~ Area l Well: X4.-1 ') ~ ~ ~ ~ ~~ Operator: ~ ~-~ 1 Hearing Date: Application Complete ~G l' ~ ~,~ ,~ ~.~~ ~~ ~~%u- c'c~~~- ~-~°1"i~v ~- '~~j ~~~ Additional Information: Reques~ed of via ;Received via Additional information: Requested / of via ;Received via t/ Public Notice `r Teat Drafted on ___~~(~ ~5 ~--~ ~ ~~ s ~' -~ ~ /C:~ .i` Text Reviewed: By Attorney General s Office on ,lr-~ ~~.~l~~~t ~=~~-errs '' Text Sent to Jody for Formatting 1 Publishing on Published in ~~~ on Questions for Operator Questions Drafted Questions Reviewed: By Team Questions Sent to Operator via By Attorney General's Office Response Received via Public Hearing Hearing Held Additional Information: Requested of Additional Information Complete _ Order Text Drafted by Text Reviewed by Team Text Sern to Attorney General's Office Text Reviewed by Attorney General's Office Text Reviewed by Other Agency Text Setrt to Jody for Formatting /Publishing Text Sent to Commissioners Approved by Commissioners Published via ;Received via ~ ~ _ DONE ORDER: ~~ ~%._- _-~- ~ ~~r~~ ~~~ -~i~~ .. ~ ;~~-- Area /Well: ~ Q t l ~~ ~ ~~C~ ~ /~ C,,e3 ~~ \ Operator: l ~(` `~~j-S Gu ~ r ~~ r ~ ~ ~`~~- ~~ 1 Hearing Date: c/ Application Complete ~ ~~~ . ~ ,.~'~ r-e~-, ~~ ~.~..~~~ --./~~ Yc.~ C c~ vim.. 1.-~~,~ Additional Information: Requested ~ ` ~r ~ ` ~ ~ ~~"" of via ;Received via Additional information: Requested of • / via ;Received via Public Notice , Text Drafted on v ~~ ~-t-~ ~ ~~7 ~/ Text Reviewed: Attorney General's Office on ext Serrt to Jody for Formatting / blishing on / Published in ~~ ~ on Questions for Operator Questions Drafted Questions Reviewed: By Team Questions Sent to Operator via Response Received via Public Hearing Hearing Held Additional Information: Requested of Additional Information Complete Order Text Drafted by L~~..i ~ `~ ~t By Attorney General's Office via ;Received via Text Reviewed by Team Text Sent to Attorney General's Office Text Reviewed by Attorney General's Office Text Reviewed by Other Agency Text Sent to Jody for Formatting /Publishing Text Sent to Commissioners Approved by Commissioners Published C~' • CHECKLIST -SPACING EXCEPTION APPLICATION OPERATOR USGS PROPERTYIDILEASE FIELD/POOL Wainwright, Coal Bed Methane WELL NAME wainwright #lo & #11. S: NSA PUBH: VERTICAL x EXPLORATORY x GAS x DEVIATED DELINEATION OIL DEVELOPMENT SURFACE LOCATION ' F Land ' F L, S. , T R M PRODUCTIVE INTERVALS ' F Land ' F L, S. , T R M (Top and Bottom) See BOTTOM HOLE ' F Land ' F L, S. , T R M Applications Check apalicable reason(s) for spacing exception per 20 AAC 25.055(x): (1) to drill a well for oil within 500 feet of a property line where ownership or landownershi than es, X (2) to drill a well for gas within 1500 feet of a property line where ownership or landownership changes, (3} to drill and cmmplete more than one oil well in a governmental quarter section; or to drill and complete an oil well closer than 1000' to any well drilling to or ca able of roducin from the same ol, 4 to drill and corn lete more than one as well in a ovemmental section; or or to drill and complete a gas well closer than 3000' to any well drilling to x or ca able of roducin from the same ool. Does the ao~licatton contain: x A brief ex lanation for wh the o rator has chosen to drill the s cified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other x completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the s an exce tion that is drillin for as. The names of all owners, landowners, and operators of all properties within 1,000 feet of a weU or portion of the well requiring the spacing exception that is drilling for x oil or within 3,000 feet of a well or portion of the well requiring the spaang exception that is drillin for s. A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. x An affidavit by a person acquainted with the fads verifying that all fads are true and that the lat come ortra s ertinent and re uired data. if the operator requests a variance from the notice requirements of x 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. Figure #7. Well Spacing Exemption Checklist. AOGCC Permit to Drill. Form 10-401. Wainwright #10 March 06, 2009, Page 17 of 25 Page 14f 2 ~ • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, April 10, 2009 3:45 PM To: Birnbaum, Alan J (LAW); Saltmarsh, Arthur C (DOA) Sul~ect: 090410_Wainwright 1t3 SLM_Waiver Notice_DRAFT.doc Attachments: 090410 Wainwright 10_and 11_BLM_Waiver Notice_DRAFT.doc Alan and Art, Please accept my apologies, I wanted to publish this before leaving for Houston, but it didn't happen. I have worked on this off and on for the past few weeks, but other, hotter fires always interfered. And USGS wells always require more attention than normal. Attached is the draft text for the Notice of Public Hearing. They want to spud by the end of May, so this notice should be published #his week. Scattered through the cover letter and the permit application are requests for the following waivers / excep#ions: • blowout prevention equipment requirements of 20 AAC 25.035, • wellbore survey requirements of 20 AAC 25.050(a){2), • well site seismic survey requirements of 20 AAC 25.061(a), • gas detection requirements of 20 AAC 25.066, and • exceptions to the spacing requirements of 20 AAC 25.055 Not directly stated, but also needed is a waiver of the bonding requirements of 20 AAC 25.025 (the Permit to Drill application merely says "DOi, SELF-INSURED.") The spacing exceptions are a bit tricky: Wainwright 10 Wainwright 10 will require an exception to 20 AAC 25.055 (a)(2) and it may require an exception to 20 AAC 25.055 {a)(4): • Wainwright 10 will require an exception to 20 AAC 25.055 {a)(2) because it will be 150' from the shoreline (Federal-State property linej. + Wainwright 10 may require an exception to 20 AAC 25A55 {a){4) if Wainwright 11 is drilled first, because Wainwright 10 will be about 1,860' from Wainwright 11.Otherwise, Wainwright 10 will lie 4,800' from the Wainwright 8 well {currently the closest existing well). Wainwright 10 will be the only well in Section 25. Wainwright 11 Wainwright 11 will require an exception to 20 AAC 25.055(aj(4). Wainwright 11 will only require an exception to 20 AAC 25.055(x)(2) if they drill in a different location than stated (not unexpected based on past experience). They are very close to the required 1500' setback from the shoreline (Federal-State boundary -about 1,580' away}, depending on how accurate Google Earth is, and where the shoreline (actually mean low-low water) really is. . Wainwright I 1 will require an exception to 20 AAC 25.055{a~4) because it will be the 7th well in Section 24. It will be located about 3,140' from Wainwright 8, the nearest existing well. • Wainwright 11 may require an exception to 20 AAC 25.055(a~4} if Wainwright i0 is drilled first, because 4!20/2009 Page 2 of 2 • Wainwright 11 will be about 1,860' from Wainwright 10. • Wainwright i l will not require an exception to 20 AAC 25.055{a){2) because it will be about 1580' from the shoreline (as measured on Googie Earth) if it is drilled in the stated location and assuming that the shoreline hasn't eroded since July 2006 (the date of the satellite photoj. All relevant information is in the permit to drill files, which are in my Confidential box. I'll be checking my email from Houston at least every other day. My cell phone number is 509-592-0719. Thanks, Steve D. 4/20/2009 'd:cVV TC•plb r'.G~~ h~.ei~ Fly To Find Businesses Directions Flytor r._:P .r ~ _~;~:_ 70 37 49.55, -16D D1 29.69 v P ~ Ci 70 37 49.55, -16D 01 29.69 ^ 70 38 06.89, -160 D1 46.34 ~ ~ X Line Path • Places Add Conterd ------- Length: ^' ~ My Places + ^D i. t~ ire I -, ,n I i:r cr t _ i~) Mouse Navigation ^ ^ Temporary Places Layers __ FJ L ~ Primary Database l±. U r Geographic Web ^ ® Roads ~ ^ ~ 3D BuNdings ^ Street View ^ ~ Borders and Labels ^ 4 Traffic ~ -'~ CtJ ^ ~ Weather ~ ~ ' ^ « Gallery ' ~ ^ ~ Global Awareness " - ~~ ^ ,~ Places of Interest C' ^ r: Mwe ^ Terrain ". ,~ - 7 ~ A ~®' A c'7 ~ ~. ~ 1,583.90 Feet -v -end sr ,- ;et z cl eat ;~ #~ ;. • s ~~ ., TOM MORTENSEN ASSOCIATES, r.LC ENVIRONMENTAL PERMITTING 8z MANAGEMENT P.O. Box 113192 AivcxoxaGE, ALASKA 995 1 1-3 192 • TEL (907) 345-5789 • Fax (907) 345-3575 March 6, 2009 Alaska Oifi & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 Attn.: Mr. Dan Seamount, Chairman ~~~ s Boas Alaska gil & has Cons, Comr~issiot~ Ancltara~ Re: Requested Exceptions to Well Spacing Provisions, 20 AAC 25.055 The purpose of this letter is to request exceptions to the spacing requirements under 20 AAC 25.055(a)(2) and (a}(4} for two proposed coal bed methane exploration wells. The wells will be drilled in and near the village of Wainwright. The US Geological Survey as the Operator, in corporation with the Bureau of Land Management and the Arctic Slope Regional Gorporation have submitted applications to AOGCC for Permits to Drill two exploration wells for coal bed methane. The locations of both wells are within or adjacent to the village of Wainwright. Tam Mortensen Associates LLC is responsible for the preparation and submittal of the applications to AOGCC. The two exploration wells will be drilled closer than 3,000 feet from the state submerged lands of the Chukchi Sea and Wainwright Inlet. Therefore, a well spacing exception has been requested for the wells. Spacing Exceptions under 20 AAC 25.055(a)(4) for Wells #10 and #11. • Proposed Wells #10 and #11 are located within the village of Wainwright. • The locations of these proposed wells are shown on the attached Figures 1 and 2. St~mmarv of Proposed Wells and Locations. Well Name and Number: Wainwright #10, (Exploration, Offset Well) Well Location Area: North Slope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 25. FNL:500' FEL:1970' NAD83 Lat.: 70°37'49.55"N Long.: 160° 1'29.69"VV Wainwright. C8M Well Spacang Exemption. Page 1 of 4 March 6, 2009 • State Base Plane Coordinates. Zone 6 x-1394054.391 y- 6084073.859 Distance to State Submerged Lands: 100' • Well Name and Number: Wainwright #11, (Exploration, Offset Well) Well Location Area: North Slope Borough, Airport at Wainwright. Well Location Legal: MTRS: Umiat T15N R32W, Sec. 24. FNL:4310' FEL:2280' NAD83 Lat.: 70°38'6.89"N Long.: 160°1'48.34"W State Base Plane Coordinates. Zone 6 x-1393479.238 y- 6085777.762 Distance to State Submerged Lands: 1700' Please contact me at 907-345-5789 or via email at tom@mortensen.com if you have any questions, or require any additional information. Sincerely, -~~~~~iU Thomas W. Mortensen cc: Arthur C. Clark, USGS, Denver. Bob Fisk, BLM, Anchorage. Teresa Imm, ASRC, Anchorage. Wainwright. CBM Well Spacing Exemption. Page 2 of 4 March 6, 2009 • r Figure #2. Location of Proposed Offset Wells #10-11, Spacing Exemption. Plan View. Wainwright. CBM Well Spacing Exemption. 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