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Home My WebLink AboutCO 627 • INDEX CONSERVATION ORDER NO. 627 Nicolai Creek 11 1. December 28, 2009 Aurora Gas LLC request for a Spacing Exception for Nicolai Creek # 11 2. January 4, 2010 Notice of Hearing ADN and Notice of Hearing January 6, 2010 Peninsula Clarion, Affidavit of Publications, a-mail list, bulk mailing list 3. January 25, 2010 Notice of Hearing ADN and Notice of Hearing January 27, 2010 Peninsula Clarion, Affidavit of Publications, e-mail list, bulk mailing list Conservation Order No. 627 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Aurora Gas, LLC for an order authorizing commingling of production within exploratory well Nicolai Creek 11, in conformance with 20 AAC 25.215 (b). Docket Number: CO-09-24 Conservation Order No. 627 Nicolai Creek Field Nicolai Creek Beluga Undefined and Nicolai Creek South Undefined Gas Pools Kenai Peninsula Borough, Alaska March 2, 2010 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 2nd day of March, 2010. BY DIRECTION OF THE COMMISSION Jod . C m Sp al A st to the Commission • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Aurora Gas, LLC for an order authorizing commingling of production within exploratory well Ni- colai Creek 11, in conformance with 20 AAC 25.215 (b). Docket Number: CO-09-24 Conservation Order No. 627 Nicolai Creek Field Nicolai Creek Beluga Undefined and Nicolai Creek South Undefined Gas Pools Kenai Peninsula Borough, Alaska March 2, 2010 IT APPEARING THAT: 1. By letter dated December 28, 2009, Aurora Gas, LLC (Aurora), the Nicolai Creek Field operator, applied to the Alaska Oil and Gas Conservation Commission (Commission) for authorization to commingle production within exploratory well Nicolai Creek 11, in conformance with 20 AAC 25.215 (b). 2. On January 4, 2010, pursuant to 20 AAC 25.540, the Commission published in the Anchorage Daily News notice of opportunity for public hearing on February 9, 2010. 3. On January 6, 2010, pursuant to 20 AAC 25.540, the Commission published in the Peninsula Clarion notice of opportunity for public hearing on February 8, 2010. 4. On January 25, 2010, pursuant to 20 AAC 25.540, the Commission published in the Anchorage Daily News re-notice of opportunity for public hearing on March 2, 2010. 5. On January 27, 2010, pursuant to 20 AAC 25.540, the Commission published in the Peninsula Clarion re-notice of opportunity for public hearing on March 2, 2010. 6. The Commission received no protest to the application, no public comment, and no request for hearing. 7. The public hearing was vacated on February 18, 2010. Conservation Order 62~ • March 2, 2010 Page 2 of 4 FINDINGS: 1. Aurora operates the Nicolai Creek Unit and the Nicolai Creek 11 well, which are located in the Kenai Peninsula Borough, Alaska. 2. Well Nicolai Creek 11 penetrates hydrocarbon reserves within the Nicolai Creek Beluga Undefined Gas Pool and the Nicolai Creek South Undefined Gas Pool. 3. The Nicolai Creek Beluga Undefined Gas Pool is comprised of sands within the Beluga Formation (Beluga). In Nicolai Creek 11, the Beluga is mechanically se- parated into (1) an Upper Completion including zones in the depth range from 842' measured depth (MD) to 1216' MD, (2) an Upper Middle Completion from 1278' MD to 1675' MD, and (3) a Lower Middle Completion from 1736' MD to 2099' MD. 4. The Nicolai Creek South Undefined Gas Pool is comprised of sands within the Tyonek Formation (Tyonek). In Nicolai Creek 11, a Lower Completion is me- chanically separated from the Beluga, and encompasses the depth range 2260' MD to 2362' MD. 5. Well test data submitted by Aurora indicate that the Beluga Upper Completion accesses about 257 million cubic feet (MMCF) of gas reserves, and flows about 285 thousand cubic feet per day (MCFPD) gas. Test data also indicate that the Beluga Upper Middle Completion contributes about 647 MMCF at about 637 MCFPD, and the Beluga Lower Middle Completion accounts for about 843 MMCF at about 2362 MCFPD. 6. Nicolai Creek 11's Tyonek Lower Completion tested approximately 334 MMCF at approximately 403 MCFPD. 7. Well bore pressure measurements from each Nicolai Creek 11 producing interval averaged about 8.3 ppg equivalent fluid density in the Beluga Upper Completion, about 9.1 ppg in the Beluga Upper Middle Completion, about 9.3 ppg in the Be- luga Lower Middle Completion, and about 9.3 ppg in the Tyonek Lower Comple- tion. 8. Nicolai Creek 11 is completed with hydraulic or mechanical packers separating the producing intervals, and adjustable sliding sleeves in the tubing. 9. Based upon log analysis, production test data and reserves analysis, production can be allocated between the pools. On the basis of estimated reserves, produc- tion allocation is about 70% Beluga Undefined Gas Pool and 30% South Unde- fined Gas Pool. 10. Aurora is simultaneously petitioning the Alaska Department of Natural Re- sources, Division of Oil and Gas, for expansion of the Nicolai Creek Unit and formation of a West Participating Area. Conservation Order 62~ March 2, 2010 Page 3 of 4 CONCLUSIONS: 1. Based upon measured average subsurface pressures, commingling production from Nicolai Creek 11's Tyonek Lower Completion, Beluga Lower Middle Completion, and Beluga Upper Middle Completion will likely not result in waste of gas due to cross flow. 2. Based upon measured average subsurface pressures, the Nicolai Creek 11 Beluga Upper Completion should not be open simultaneously with the remaining intervals at this time. 3. On its own, the Nicolai Creek 11 Tyonek Lower Completion will likely quickly deplete to its economic limit, based upon the zone's tested flow rate and estimated reserves. 4. Commingling the Nicolai Creek 11 Tyonek Lower Completion with the Beluga Lower Middle and Upper Middle Completions will likely improve ultimate recov- ery of gas, as the Tyonek Lower Completion should contribute to production for the life of the Beluga zones based upon the Tyonek's relatively lower permeability. 5. Water production or production upset from any Nicolai Creek 11 producing inter- val can be mitigated by manipulating an appropriate sliding sleeve or setting pack- er plugs. 6. Production can be allocated between Nicolai Creek 11's producing zones. NOW THEREFORE IT IS ORDERED: Pursuant to AS 31.05.030 and 20 AAC 25.215, in accordance with the terms set forth above, the Commission approves commingling of production within exploratory well Nicolai Creek 11. This authorization, which requires compliance with all other legal Conservation Order 62~ • March 2, 2010 Page 4 of 4 requirements, applies to the Tyonek Lower Completion, the Beluga Lower Middle Completion, and the Beluga Upper Middle Completion. DONE at Anchorage, Alaska and dated March 2, 2010. Daniel T. Sealtiour~t, Jr., Chair Bri~s1c~0i1 ~"nd G s Conservation Commission ";xf. ,xaorman, ~.om Iss~..1O~ Oil azI'd Gas Conservation Commission 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 reconsi- deration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the appli- cation for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or deci- sion on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That ap- peal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distri- butes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tJhe 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. Cathy P. Foerster, Commissioner Alask Oil and Gas Conservation Commission ~ • Mary Jones David McCaleb George Vaught, Jr. XTO Energy, Inc. IHS Energy Group PO Box 13557 Cartography GEPS Denver, CO 80201-3557 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 Ft. Worth, TX 76102-6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 408 18th Street President 6900 Arctic Blvd. Golden, CO 80401-2433 PO Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Schlumberger Ciri Baker Oil Tools Drilling and Measurements Land Department 4730 Business Park Blvd., #44 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 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 3~~° S ~~~-~L C7 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, March 02, 2010 2:04 PM To: 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood@marathonoil.com; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); P Bates; Randy Hicks; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; Talib Syed; 'Tiffany Stebbins'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2@mtaonline.net); (michael.j.nelson@conocophillips.com); (Von.L.Hutchins@conocophillips.com); alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; Dan Bross; dapa; Daryl J. Kleppin; David Boelens; David House; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; doug_schultze; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Jdarlington Qarlington@gmail.com); Jeff Jones; Jeffery B. Jones Qeff.jones@alaska.gov); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; Jon Goltz; Joseph Darrigo; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Larry Ostrovsky; Laura Silliphant; Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Kovac; Mark P. Worcester; Marquerite kremer; Michael Jacobs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker@alaska.gov); PORHOLA, STAN T; Rader, Matthew W (DNR); Raj Nanvaan; Randall Kanady; Randy L. Skillern; Rob McWhorter; rob.g.dragnich@exxonmobil.com; Robert A. Province (raprovince@marathonoil.com); Robert Campbell; Roberts, Susan M.; Rudy Brueggeman; Scott Cranswick; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy O (DNR); Ted Rockwell; Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjr1; Walter Featherly; Williamson, Mary J (DNR); Winslow, Paul M; Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (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); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: co627.pdf -Adobe Acrobat Professional Attachments: co627. pdf <~3 STATE OF ALASKA • NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A 0-03014020 M '' SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Janu 22 2010 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion P.O. Box 3009 Kenai AK 99611 ~ 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 Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO i 100 AOGCC, 333 W. 7th Ave., Su to Anchors e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z A~ 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ 1 08 02140100 73451 2 3 4 a REQUISI ONED B ,^ s i ti DIVISION APPROVAL: 5 l i i ...... -.....,..... i • • Re-Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO-09-24 is being re-noticed for a hearing due to clerical error. By application On December 28, 2009, Aurora Gas, LLC (Aurora) has requested Authorization for the Commingling of Production within the Wellbore Nicolai Creek Unit #11, Tyonek and Beluga undefined Pools under 20 AAC 25.215(b). The Commission has tentatively scheduled a public hearing on this matter for March 2, 2010 at 9:00 am. To request that the hearing be held, a written request must be filed by 4:30 p.m. on February 16, 2010. 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 February 19, 2010. Written comments regarding the application may be submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on March 1, 2010, except that, if a hearing is held, comments must be received no later than 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 F ary 23, 2010. D T. Seamount, Jr. Chair • • PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA ss: i~euisc, Reece being first duly r--- Re-Notice of Pub tdeering ~ State of Alaska " Alaska 0if and Gas Conservation Commission Re: Docket # C0-09-24 is being re-noticed fora hearing due to clerical error. By application On ~ >' December 28, .2009, Aurora .Gas, LLC (Aurora) has ~1; 'requested Authorization for the Oommingling of ~aC, 'Production within the Wellbofe Nicolas Creek Unit #11, ~ d' lgror~ek- and :Beluga undefined Pools under 20 ARC ~i. Y 25.215(b). The Commission has #entatively scheduled a publ'ic# hearNnj on this matter for March 2, 2010 at 9:00 am. t to request that the hearing be held, a written request tnuat !9e filed by 4:30 p.m. on February 16, 2010. M a nxluest is not timely filed,. fhe Commission ms<ry '~onsidsr the issuance of an order without a hearing. 17it Mrn- if the Commission will hold a hearing, call 9q7• 7ti3-1221 after February 19, 2010. lhhitten comrrSents regarding the application may be`' submitted to the Commission, at 333 W25t 7th Aaax~e, Suite 100,. Anchorage, Alaska 99501. Com-nonts must be h~ceived no later than 4:30 part. ~! ~ca~, March # ~o#O;~ezc~ept=that,. tf a-krea~ns is heir, ' comments must be 'received no later than the I ' corrdusion of the hearing. ' If, because of a disability, special accommodations; 907-793n122 by February 23, 2010. d the hearing, call I Daniel T. Seamount,'Jr. ~ L Chair PUBLISH: 1/27, 2010 7754!2©~"4 ~-------------..........J sworn, on oath deposes and says: That I am and was at all` times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Re-?~~>~~;e of Pui~lic Hearing a printed copy of which is hereto annexed was published in said paper one each and every day for °ne successive and consecutive day in the issues on the following dates: January 27, 20? 0 X ~o~C~l ~,.f~ ~p SUBSCRIBED AND SWORN to me before this ~7t1: day of Januar~~ ?010 NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-/1i:g-12 02-902 (Rev. 3/94) Publisher/~al Copies: Department Fiscal, Departmen~eiving AO.FRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_03014020 ' AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 I ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R Suite 100 333 West 7~' Avenue ° . Anchorage. AK 99501 PHONE PCN M 907-793-1238 - OATES ADVERTISEMENT REQUIRED: ASAP T Peninsula Clarion 0 PO Box 3009 Kenai AK 99611 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN NTIRETY ON THE DATES SHOWN ~ . ITS E SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE tN 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 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER r STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A 0-03014019 /`1 SEE BOTTOMFORINVOICEADDRESS F R A~GCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. January 22, 2010 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Arichora e AK 99514 g ~ January 25, 2010 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 Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z A~ 0291 0 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID ~ 10 02140100 73451 2 REQUISITION B ~ ~; DIVISION APPROVAL: r ~ ? A 02-902 (Rev. 3/94) ~ J Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • ~ Re-Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO-09-24 is being re-noticed for a hearing due to clerical error. By application On December 28, 2009, Aurora Gas, LLC (Aurora) has requested Authorization for the Commingling of Production within the Wellbore Nicolai Creek Unit #11, Tyonek and Beluga undefined Pools under 20 AAC 25.215(b). The Commission has tentatively scheduled a public hearing on this matter for March 2, 2010 at 9:00 am. To request that the hearing be held, a written request must be filed by 4:30 p.m. on February 16, 2010. 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 February 19, 2010. Written comments regarding the application may be submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on March 1, 2010, except that, if a hearing is held, comments must be received no later than 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 F uary 23, 2010. D T. Seamount, Jr. Chair Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE THER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 733069 01/25/2010 AO-03014 STOF0330 $139.44 $139.44 $0.00 $0.00 $0.00 $139.44 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 Subscribed~~°Jand sworn tfo me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska i ,~ ,n, . . MY C/O/M/MISSION EXPIRES:~~-~ ~ ~ /`~ r `~` ~(N~p: r~'~l ~~~~i~ `~~`o'~A ~ OTAIQR~~ ^. ~ --- ~ ~UBLIG _. • ~ __ ~~...~.. Re-Notice of Pnblic HearFng STATE OPALASKFI Alask90ll and Gsis Conservation Commission nwarinpQ duett CIe~C I errObrei B rapplicat prl On 2~.2151b);: equest must be filed by 4:30 p.m. do February 16, '010. ?21 afterfebruary 19, 2010. no later titan tnel tecause of a disabHity, special ac4bmmodatiorts y be needed to corrurtertt or attend the hearing, 1907-793-1221 by Fedruary 23,2010. Daniel T. Seamount, Jr. Chit 4019 d: January 25, 2010 ~~+~ • STATE OF ALASKA ADVERTISING ORDER BOTTOM FOR INVOICE AD NOTICE TO PUBLISHER ADVERTISING ORDER NO. AFFIODAVIMOF PUBLICATIONI PART 2 OF THIS ORM) W TIH ATTACHED LOOPY OFIFIED /~ 0_03014019 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE /'1 F AOGCC R 333 West 7th Avenue. Suite 100 ° Anch~rage_ AK 9951 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT PHONE l 7l/ / 1 / 7.7 - 1 LG l DATES ADVERTISEMENT January 25, 2010 DATE OF A.O. PCN 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 state of in said division and and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2010, and thereafter for consecutive days, the last publication appearing on the day of , 2010, 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 2010, Notary public for state of My commission expires _ 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 Czi~ ~ /~/(a 6/U #2 STATE OF ALASKA .NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIEu AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A O_03014016 M SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. December 31 2009 ° M Anchorage, AK 99501 907-793-1238 PHONE - PcN DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion P.O. Box 3009 Kenai AK 9961 1 ~ 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 Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN s Axn 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ 1 08 02140100 73451 2 3 4 REQUISITI E BY: DIVISION APPROVAL: • ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO-09-24. By application On December 28, 2009, Aurora Gas, LLC (Aurora) has requested Authorization for the Commingling of Production within the Wellbore Nicolai Creek Unit #11, Tyonek and Beluga undefined Pools under 20 AAC 25.215(b). The Surface Location: 1534' FEL, 1894' FSL, Sec. 30 T11N R12W, SM and the Bottom Hole Location: 1534' FEL, 1894' FSL, Sec. 30 T11N R12W, SM. The Commission has tentatively scheduled a public hearing on this matter for February 9, 2010 at 9:00 am. To request that the hearing be held, a written request must be filed by 4:30 p.m. on January 25, 2010. 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 February 8, 2010. Written comments regarding the application may be submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on February 8, 2010, except that, if a hearing is held, comments must be received no later than 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 January 28, 2010. Daniel T. Seamount, Jr. Chair • • PUBLISHER' S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA ss: Denise Reece being first duly r-~^-.~~--- i >~TE~ Alaska Oil and Gas Conservation Commisslon Re; Docket # CO-09-24. f By application .On December 28, 2009, Aurora`Gas, LLC'(Aurora) . 1 has requested Authorization Yor the Commingling of Production within the Wellbore ' sNicolai Creek Unit #11, Tyonek and Beluga ' undefined Pools under 20 AAC 25.215(b). The Commission has tentatively scheduled a public ' hearing on this matter for February. 8, 2010 at 9A0 am. To request that the hearing be held, a written request must be filed by 4:30 p.m. on January 20, 2010.. if a request ie not timely filed, the: Commission may,. consider the issuance of an order without a hearing. To learn. if the Commission. will-hold: a hearing, calk 907- 793-1221 after January 22; 2010. Written comments regarding-the applicatioK may be l 'submitted 4o the Commission, at 333-West 7th Avenue, ' Suite 100, Anchorage, Alaska X99501. Comments must be received no later than 4:30 p.m. on February 5, 2010, except that, if a hearing is held, comments must ~ be received no later than the conclusion of the hearing.. If, because of a disability, special accommodations may be needed to comment or attend thefiearing, call 907-793-1221 by January 25, 2010. Daniel T. Seamount, Jr. Chair t PUBLSl1t 0~1~ 9Ct0 tf26/2074 sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Public Hearing AO-03014016 a printed copy of which is hereto annexed was published in said paper one each and every daY for one successive and consecutive daY in the issues on the following dates: January 6, 2010 X ~~~-~. /~ ~~L~.f SUBSCRIBED AND SWORN to me before th' 7th da of January 2010 ~ ~~~QQ NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-12 PS BUSS ~pTAF~ 1° t~~~, `~i1gL1G ~~QQ~ 02-902 (Rev. 3/94) Publisher/Orig~ Copies: Department Fiscal, Department, Reg AO.FRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /L O_03014016 ` AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF 1 / ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS ~ AOGCC AGENCY CONTACT DATE OF A.O. R Suite 100 333 West 7th Avenue ° . Anchnrage_ AK 9951 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: ASAP T Peninsula Clarion 0 PO Box 3009 Kenai AK 99611 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN DATES SHOWN H ~ . ITS ENTIRETY ON T E SPECIAL INSTRUCTIONS: 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 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER STATE OF ALASKA NOTICE TO PUBLISHER TT ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A 0-03014015 !'~ SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. December 31, 2009 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Arichora e AK 99S 14 g ~ January 4, 2010 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 Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., SUlte LOO Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z A~ 0291 0 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 10 02140100 73451 2 REQUISITIONED B ///' ~ DIVISION APPROVAL: _ f/ ~ ~ `~ 02-902 (Rev. 3~944~ Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO-09-24. By application On December 28, 2009, Aurora Gas, LLC (Aurora) has requested Authorization for the Commingling of Production within the Wellbore Nicolai Creek Unit #11, Tyonek and Beluga undefined Pools under 20 AAC 25.215(b). The Surface Location: 1534' FEL, 1894' FSL, Sec. 30 T11N R12W, SM and the Bottom Hole Location: 1534' FEL, 1894' FSL, Sec. 30 T11N R12W, SM. The Commission has tentatively scheduled a public hearing on this matter for February 9, 2010 at 9:00 am. To request that the hearing be held, a written request must be filed by 4:30 p.m. on January 25, 2010. 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 February 8, 2010. Written comments regarding the application may be submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on February 8, 2010, except that, if a hearing is held, comments must be received no later than 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 January 28, 2010. Daniel T. Seamount, Jr. Chair • STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE A • NOTICE TO PUBLISHER I ADVERTISING ORDER NO. AFFOIDAVITIOF PUBLICA TONI(PART 2 O THIS ORM) WITH ATTACHED LOOPY OFIFIED /L O_03014015 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE M F AOGCC R 333 West 7~' Avenue. Suite 100 ° Anchorage_ AK 995(11 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT I DATE OF A.O. PHONE IPCN 1711/ 1 /77 -1GG1 DATES ADVERTISEMENT REQUIRED: January 4, 2010 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 _ • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, December 31, 2009 11:34 AM To: (foms2@mtaonline.net); (michael.j.nelson@conocophillips.com); (Von.L.Hutchins@conocophillips.com); alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; caunderwood; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; Dan Bross; daps; Daryl J. Kleppin; David Boelens; David House; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; doug_schultze; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Jdarlington (jarlington@gmail.com); Jeff Jones; Jeffery B. Jones (jeff.jones@alaska.gov); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; Jon Goltz; Joseph Darrigo; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Laura Silliphant; Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Kovac; Mark P. Worcester; Marguerite kremer; Melanie Brown; Michael Jacobs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Offtake Coord; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker@alaska.gov); PORHOLA, STAN T; Rader, Matthew W (DNR); Raj Nanvaan; Randall Kanady; Randy L. Skillern; Rob McWhorter; rob.g.dragnich@exxonmobil.com; Robert A. Province (raprovince@marathonoil.com); Robert Campbell; Roberts, Susan M.; Rudy Brueggeman; Scott Cranswick; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Sonja Frankllin; Steve Lambert; Steve Moothart; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy O (DNR); Ted Rockwell; Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Todd Durkee; Tony Hopfinger; trmjr1; Walter Featherly; Williamson, Mary J (DNR); Winslow, Paul M; 'Aaron Gluzman'; 'Dale Hoffman'; Fredric Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Crisp, John H (DOA); Darlene Ramirez; Davies, Stephen F (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); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: Nicolai Creek 11 -Public Hearing Notice Attachments: Nicolai Creek 11.pdf ~ Mary Jones David McCaleb Ci Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply 8~ 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 ~~ '~ • • :~- .-~ :Aurora Gas LLC www.aurorapower.com ~~(~ ~~~~~ Alaska ail ~~ "~~~~~ Cummissior~ ~~~_ _. Daniel T. Seamount, Jr. Chairman Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Authorization for Commingling of Production within Wellbore Nicolai Creek Unit #11, Tyonek and Beluga undefined Pools Dear Mr. Seamount: December 28, 2009 Pursuant to 20 AAC 25.215 (b), Aurora Gas, LLC (Aurora) hereby requests approval to allow the commingling of production from the Tyonek and Beluga formations within the Nicolai Creek No. 11 ("NC 11 ") wellbore. The NC 1 l was completed to a MD/TVD depth (PBTD) of 3,509 feet. The Beluga Tsuga 2-5 thru 2-8 sands are producible from perforations from 920 feet to 2,099 feet. The Tyonek Carya 2-1 sands are producible from perforations from 2,260 feet to 2,362 feet. The Beluga and Tyonek sands are presently separated within the wellbore by a mechanical-set packer at 2,175 feet. Please refer to the attached completed wellbore diagram. According to mapping based on seismic and pressure data from Schlumberger XPT tests, the Beluga Tsuga sands in the NC 11 are believed to be fault separated from the Nicolai Creek Unit No. 9 well ("NCU9"). The pressure data indicates the NCU9 to be partially depleted below 1,300' (bhp at 1384' was estimated from surface pressure on 9/22/09 to be about 263 psia-3.65 ppg gradient), and the NC 11 showed no significant depletion at correlative depths, except for a slight depletion at 1,660' to 1,673' where the MDT log found an 8.0 - 8.13 ppg gradient versus 9.0+ ppg elsewhere in the common depths. See attached summary of NC 11 Pv1DT data). The XPT tests in NC 11 indicated average bottom-hole pressure of 1,113 psia (9.45 ppg gradient) in the Tyonek Carya 2-1.1 and 1,138 psi in the Carya 2-1.2 (9.3 ppg gradient), indicating no depletion. Bottom-hole pressures in the offsetting NCU1B in the Carya 2-1,2 is estimated at 346 psia (2.9 ppg) and in NCU2 in the Carya 2-1.1 and 2-l .2 are estimated at 315 psia (2.6-2.8 ppg gradient-estimated from surface pressures in May 2009 and September 2009, respectively). Thus, it does not appear that the Tyonek Carya 2-1 reservoirs in the NC 11 are pressure connected to the partially depleted 2-1 reservoirs in the # 1 B and the #2. 1400 West Benson Blvd., Suite 410 • Anchorage, AK 99503 • (907) 277-1003 • Fax; (907) 277-1006 6051 North Course Drive, Suite Z00 • Houston, TX 77072 • (713) 977-5799 • Fax; (713) 977-1347 L_J Daniel T. Seamount, Jr Nicolai Creek No. 11 Commingling of Production Request December 28, 2009 Page 2 According to electric log and mud log data, the Beluga Tsuga sands are separated from the Tyonek Carya sands by 160' of tight (low permeability) sandstone and siltstone, carbonaceous claystone, clay, and 2 coal seams. The commingling of production from the lowest Beluga completions (the Tsuga 2-7 and 2-8 sands of the Lower Middle Completion) with the Upper Tyonek Carya 2-1 completion (Lower Completion) is desired to ensure ultimate recovery of producible gas from the Tyonek Carya sands. The Tyonek on its own appears to be a poor producer which tested at only 403 mcf/d and would likely deplete to the point of becoming uneconomic fairly quickly. (It is currently producing at approximately 4S0 mcf/d, slightly better than tested). When commingled with the Lower Middle Completion (the deepest Beluga Tsuga completions), it can be produced for a much longer time. Since the Tyonek completion would have the highest reservoir pressure and appears to be the lowest permeability, it will likely contribute to production for the life of this deepest Beluga completion. If either the Beluga or Tyonek completions should start to produce water, either can be easily shut off without affecting the other completion by closing a sliding sleeve (to shut off the Lower Middle Completion) or by setting a wireline PX plug in the "X" profile in the On-Off tool at the top of the deepest packer (to shut off the Carya 2-1 completion, Lower Completion). The loss of producible gas will not likely occur with the comingling of production. The individual pressures of the two zones are not that far apart, based on SIP's after the individual well tests: calculated at 882 Asia and 1016 psia (13% difference). Since the intervals were commingled and tested together, there has undoubtedly already been cross- flow from the deeper, higher-pressured zone to the shallower zone, so the pressures have already equalized to some extent, as indicated by the SISP`s after the 4-point test, which at 883 psia was greater than the individual SI surface pressure of the middle completion at about 845 psia and less than the SI surface pressure of the lower completion of 96S psia. Based on log analysis, production test data and reserves analysis, production can be calculated from the separate Beluga and Tyonek formations by at least three methods. On the basis of individual tests, 15% is coming from the lower completion (Tyonek) and 8S% from the lower and middle completions (Beluga). On the basis of estimated reserves, that allocation would be 30% and 70%, respectively. On the basis of net pay, that allocation would be 38% and 62%, respectively. The reserves basis, being 30% Tyonek and 70% Beluga, is probably the best and most accurate allocation method. Interestingly, the 4-point test of the combined (commingled) zones yielded a rate higher than the individual tests of the two zones, indicating that the zones had both cleaned up a bit. See the attached Test Summary, Log Analysis and the Reserves Analysis indicating reserves and net pay, all of which provide some means of allocating production. • Daniel T. Seamount, Jr Nicolai Creek No. 11 Commingling of Production Request December 28, 2009 Page 3 Aurora is simultaneously requesting the expansion of the Nicolai Creek Unit and formation of the West Participating Area with the Department of Natural Resources, Division of Oil and Gas. That request is attached for reference. As stated earlier, the NC11 is currently producing from the lower Tyonek formations. It is anticipated that the PX plug in the "X" profile in the On-Off tool at the top of the deepest packer, shutting in the Tyonek formation, and one or more of the sliding sleeves will be opened in the tubing to allow production from the Beluga formation. Your approval of Aurora's request, after the necessary public noticing and comment period, to commingle the Tyonek and Beluga production within the NC 11 wellbore will be greatly appreciated. Should you need additional information pleas do not hesitate in contacting me. Sincerely, Bruce D. Webb Manager, Land and Regulatory Affairs attachments C Aurora Gas, LLC Nicolai Creek #11 Final Actual Completion September 2009 RKB - 16.Oft Drill 12-1/4" Hole to 650' Beluga Tops Tsuga 2.5 Tsuga 2.6 Tsuga 2.7 Tsuga 2.8 Tyonek Tops Carya 2-l.l Carya 2-1.2 Tsuga 2.5 920-930' 1004-1012' Tsuga 2.6 1090-1100' 1208-1216' Tsuga 2-6 1349-1355' Tsuga 2-7 1388-1402' 1414-1434' 1658'-1675' Tsuga 2-7 1736'-1741' 1752-1757 1763-1768' 1810-1830' Tsuga 2-8 2058-2063' 2089-2099' Carya 2-1 2260-2274' 2345-2362' PBTD @ 3,509' Dril17-7/8" Hole to 3,600' 2 7/8 6.5# 8rd EUE J-55 13-3/8" 68# K-55 Conductor driven to 102' 9-5/8" 36# K-55 Surface Casing set at 632' Cement w/ 13.0 ppg accelerated Type 1 WXA Sliding Sleeve @900' PHRP Hydraulic-Set Packer @ 909' WXO Sliding Sleeve @ 979' PHRP Hydraulic Set Packer @ 1297' WXO Sliding Sleeve @ 1619' PHRP Hydraulic Set Packer @ 1690' WXO Sliding Sleeve @ 1701' WXO Sliding Sleeve @ 2014' Mechanical-set Packer @ 2175 w/ On- Off Tool @ 2173' w/ X Nipple 2-718" tubing pup then crosses to 3-112" With tea 3-112" Stratapak screens @ 2234' with 2-7/8" pup with bull plug in bottom. 5 %x" 17# J-55 Casing to 3,589' MD (TVD) Cement w/ 48 bbl 12.0 ppg + 95 bbl 14.8 ppg Class `G' tail. AURORA GAS, LLC NICOLAI CREEK UNIT #11 TEST RESULTS SUMMARY 2009 INITIAL COMPLETION SITr DATE DATUM TEST MCFPD FTP Calc BHP WTR COMMENTS of TOP BASE NET (mid perf) NO. (Calc psia) TEST MD/TVD MD/TVD PERFS TVDss (tester) psig XPT, sia BPH TSUGA 2-5 AND UPPER 2 -6--Upper Completion 9/24/2009 920 930 10 2 FL at 880' after opening sleeve. 1004 1012 8 (JB) 324 1090 1100 10 -1048 285 258 334 4.20 5.2 bbl load water 1208 1216 8 (347 psia) of 8.4 bbt: 1.7 BPH 0 XPT= 452 Water in tubing--FL at 780'--BHP-452 psig 36 Lower TSUGA 2-6 and Upper TSUGA 2 -7--Upper Middle Co mpletion I FL at 780' after opening sleeve 9/24/2009 1349 1354 5 3 637 442 564 1.28 unloaded 8.4 BW prior to test--calc load= 1388 1402 14 (JB) 583 10.6 bbl max--10.6 bbl total recovery 1414 1434 20 -1492 (598 psia) +47 psi for FL 1658 1675 17 XPT= 709 56 Lower TSUGA 2-7 and TSUGA 2-8--Lower Middle Completio n FL at 1420' after openi ng sleeves. 9/25/2009 1736 1741 5 4 2362 562 830 0.93 unloaded 3.9 bbl befor e test--calc load= 1752 1757 5 (JB) 867 9.7 bbl max--8.1 total r ecovery 1763 1768 5 (882 psia) 1810 1830 20 -1897.5 XPT= 915 2058 2063 5 2089 2099 10 50 CARYA 2-1.1 AND 2-1.2-Lower Completion 950 0.00 9/21/2009 2260 2274 14 1 403 130 1001 Swabbed 10.25 bbl before flowing--calc load 2345 2362 17 -2291 (EJ) (1016 psia) 11.7 bbl in tbg + 2.1 to btm of top perFs 31 XPT= 1112 Small amt in test sep. • • IVIHL ~ m~rru Ed Jones 9/28/2009 C7 • ~~ Ryder Scott Reservoir 1. ~ Solutions ' ~ ~ ~ (Public) (Protected) WELL NAME: NICOLAI CREEK #11 FIELD: NICOLAI CREEK LO_CA_TION: West Side Cook Inlet, Kenai Bor., Alaska RESERVOIR: L. Tsuga 2-7, Tsuga 2-8, Carya 2-1.1 and 2-1.2 (Perfs 1736-2362') BOTTOMHOLE TEMP, °F: 87 SOUR GAS MOLE GAS GRAVITY: 0.562 NZ 1.00 HZO GRAVITY, y„,: 1.010 COZ 0.00 COND. GRAV., °API: _ _ HZS _ 0.00 ~ TVD, FT: 2,049 ~ MEAS. DEPTH, FT: 2,049 Options Cond. Correl. (Y/N)_ N ~ Check If Injection Well _ Corrected* Tc, °R: - - __ -- Corrected* Pc, Psia: 344.25 671.89 , ~ Smooth Pipe Roughness Pressure Base, Psia: 14.650 TUBING ID, IN.: 2.441 * Wichert-Aziz correction for contaminants, if any RESULTS AOF, Mcf/d: 5,904 C: 0.006927 n: 1.000000 ~,ooo 0 x - - .y a a a ' goo ioo i,ooo ~o,oao Flow Rate, Mcfld POINT NO. Test Data FLOWING (Automatic) Q, Mcfld BCPD BWPD FTP, Psia WHT, °F BHP, Psia COMMENT SHUT-IN 0 0 0 881 39 923 SIBHP 1 949 0 4 T96 50 835 2 2,073 0 13 709 50 749 3 2,593 0 5 638 50 677 4 3,143 0 6 590 50 631 These results were prepared using Reservoir Solutions Software. This is not Ryder Scott work product. AURORA GAS, LLC NICOLAI CREEK #11 VOLUMETRIC RESERVES PRVD INTERVAL Proposed NET PAY POROSTY Sw WF Omni Alt. POROSITY Calc Calc Z TEMP BHP OGIP RF REC GIP RESRVS PROB ML NuTech SWC XPT SWC in #1 Perfs ft % % SWC Net Pay % Rt Rw Sw deg R psis mcflac-ft % mcflac•ft 60 ac RESRVS SHOW Perm Perm Mobility Prob MDITVD NT NT NT Por, % ft den ohm•m % (measured values are bold) MMCF units and and mdlcp Prod LOWER COMPLETION Carya 2.1.2 0,467 at 2345' 2345 2362 17 0 -- •- 24% 10 23% 14 D.340 47% 0.87 550 1110 436 90 392 235.404 65 nC 90 1.1 wtr Carya 2.1.1 0.486 2260 2274 14 5 25.1 59.2 25.80% 25% 12 D.340 48% 0.87 550 1113 367 90 330 99.030 262 1.1 112 1.2 Wet .55 t SR= 334.433 wtr LOWER MIDDLE COMPLETION • Tsuga 2.8 0.465 2089 2099 iD 13 24.6 51.3 24.85 26% 22 D.632 47% 0.88 547 987 378 90 340 265.524 35 3 123 23 gas 2058 2063 5 3 24.3 45 27% 20 D.632 47% 0.88 547 972 416 90 374 67.343 55 2 Tsuga 2-7 0479 1890 x894 0 -- -- 27.1 0 27% 11 0.736 69% 0.89 534 921 249 90 224 0.000 45 nc 180 wtr 1810 1830 20 2 21.3 40 20.8 18 23% 30 0.632 44% 0.89 547 882 357 90 321 308.028 231 1 25 1 wtr 1763 1768 5 3 24.8 35 21.6 27% 40 0.646 34% 0.89 545 881 447 90 402 72.445 90 3 13 0.35 wtr 1752 1757 5 2 27 51 29% 17 0.653 50% 0.89 544 876 368 90 332 39.784 40 4 1736 1741 5 4 24 38 19.1 28% 35 0.653 35% 0.89 544 877 415 90 374 89.644 154 5 4 0.12 tite UPPER MIDDLE COMPLETION an= I ogc.roa~ 1658 1675 17 7 24.7 53 26.65 10 28% 20 0.653 47% 0.91 544 701 253 90 228 95.680 2D 3 163 15.9 g88 1460 1468 0 -- -- 24% 15 0788 67% 0.91 528 706 160 90 162 0.000 20 nc 1414 1434 20 15 25 36 23 27% 30 0.683 40% 0.92 540 664 339 90 305 274.575 70 13 48 0.5 wtr 1388 1402 14 12 21.7 27 23.35 32% 30 0.683 35% 0.92 540 671 329 85 280 201.618 147 2 BO 5,06 Tsuga 2-6 0.472 1349 1354 6 4 28 35 36% 100 0.691 18% 0.92 539 652 369 85 313 75.184 55 22 1308 1320 1 25 31 10 24% 30 0.808 48°/ 0.92 527 832 347 85 295 178.835 35 3 1278 1291 0 -- -- 5 27% 18 0.812 57% 0.925 526 618 228 85 194 0.000 58.259 15 -- SfT= 647.057 UPPER COMPLETION 1208 1216 8 5 26 43 19.2 27% 25 0,699 45% 0.93 538 584 266 80 213 63.922 45 2 3 fife 0.471 • 1164 1176 4 27.8 52 iD 26% 20 0.828 56% 0.93 525 563 237 80 190 113.73D 10 4 1090 1100 10 2 25.5 47 4 23% 40 0.716 40% 0.935 536 527 219 80 175 21.005 10 nc Ts 2.5 0.469 1060 1070 0 -- -- 5 28% 20 0.844 53% 0.935 523 512 211 80 168 50.524 15 nc 1004 1012 8 0 -- -- 5 24% 45 0.724 37% 0.94 535 493 228 80 183 54.804 20 nc 950 966 2 28 61 25% 25 0.831 52% D.94 524 467 159 80 127 10 2 920 930 10 10 24,7 28 23.7 28% 100 0.683 21% D.94 540 452 244 80 195 117.042 50 16 93 27.5 gaS 893 900 0 -- -- 6 28°/a 25 0.870 48% D.94 521 439 199 80 159 57.288 15 nC 842 860 0 -- -• 13 26% 30 0.850 48% D.95 523 414 179 80 143 111.873 5 nc SIT= 256.773 Total Perfs 174 94 94 2081.D31 568.509 MMCF 16 guns ASSUMPTIONS: Rw @120 i 0,45 in Beluga Sw=Sq Rt ((1lPOR""1. 5)"(RwIRQ) 0.25 in Tyonek Ed Jones 911612009 • .~, . Aurrora as^ LLC ~ www.aurorapower.com j Ms. Temple Davidson Petroleum Land Manager State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99501 December 28, 2009 RE: Nicolai Creek Unit, Proposed Expansion and Creation of the West Participating Area Dear Ms. Davidson: Aurora Gas, LLC ("Aurora"), as Nicolai Creek Unit ("NCU") operator and sole working interest owner, hereby applies for the Expansion of the Nicolai Creek Unit and the creation of the West Participating Area ("West PA"), in accordance with 11 AAC 83.351 and 11 AAC 83.356. Reference is made to that certain Nicolai Creek Unit Agreement established in 1968, being Department of Natural Resources ("DNR") No. 14-08-0001-8913, as amended and approved by the Commissioner of Natural Resources on March 10. 2005 and April 2, 2007. The subject State of Alaska Oil and Gas leases involved in this Unit Expansion and creation of the West PA request are AD:L 391472 and ADL 17598. The Nicolai Creek No. 11 ("NC11") well was drilled and tested in the fall of 2009. Aurora determined the well to be capable of commercial. production and installed the necessary production facilities and gathering lines to produce the NC11 through the existing Nicolai Creek Unit 1, 2, 9 production facilities. The well began. supplying natural gas to the Cook Inlet market at approximately 3:15 PM on November 27, 2009. The NC 11 well is capable of production from the Tyonek Carya sands and the Beluga Tsuga sands. Presently, production is from the lower Tyonek completion only and has been assigned a production allocation code of LCO1. An application. is simultaneously being submitted to the Alaska Oil and Gas Conservation Commission ("AOGCC") for the commingling of production within the same wellbore, pursuant to 20 AAC 25.215, a copy of that application is attached for reference. Aurora submitted geologic and well data to the DNR as required under the terms of the Lease Operations Approval, Data Submittal Requirements. In addition to is data, Aurora respectfully submits the structural reservoir mapping derived from the corresponding interpretations of our seismic data, the NC 11 four-point production test results and test summary, and the log and reserves analysis by zone. Accompanying this application is Exhibit A, which is the revised map of Nicolai Creek Unit Boundary and PAs; Exhibit B, which is the revised description of the Nicolai Creek Unit Boundary, Tract Allocations and PAs; and the revised legal descriptions for ADL 391472 and ADL 17598, showing the additional segment created for the West PA. 1400 West Benson Blvd., Suite 410 • Anchorage, AK 995D3 • (907) 277-1003 • Fax: (907) 277-1006 6051 North Course Drive, Suite 200 • Houston, TX 77072 • (713) 977-5799 • Fax: (713) 977-1347 • Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 2 Attachment 1 is a map showing the old and new NCU boundary. Attachment 2 is a map showing the old and new SPA boundary. Attachment 3 is Exhibit A to the NCU Agreement showing the approved boundaries for the NCU, BPA, SPA, and NPA. BACKGROUND AND NICOLAI CREEK UNIT HISTORY Texaco formed the Nicolai Creek Unit and Participating Areas A and B in l 968. It drilled the Nicolai Creek State No. 1-A well ("NCS-lA") in the Participating Area B and tested the well, but no facilities or pipelines were built to facilitate sustained production. It also drilled the Nicolai Creek No. 2 well ("NCU-2") and the Nicolai Creek No. 3 well ("NCU-3"). NCU-2 tested gas from Participating Area A for nine months in 1968 and 1969. Facilities and a pipeline were installed for Participating Area B and NCU-3 produced from Participating area B from 1969 through 1977. In 1973, the NCU boundary contracted to the discontiguous lands within Participating Areas A and B. Unocal and Marathon acquired the field in 1988, each holding 50% working interest, and Unocal was the designated unit operator. Beginning in 1998, AS 38.05.180(f)(5) provided for a temporary royalty reduction to encourage development of certain fields in the Cook Inlet Basin, including Nicolai Creek. The Statute establishes a royalty rate of five percent on the first 25,000,000 barrels of oil and 35,000,000,000 cubic feet of gas produced from eligible fields within. 10 years of initial production for sale, if production for sale commenced before January 1, 2004. To qualify for the reduced royalty rate on production from the Nicolai Creek Field, the operator was required to submit a written plan to the Alaska Oil and Gas Conservation Commission ("AOGCC") in accordance with AS 3I.05.030(i). This generous economic incentive was intended to encourage Unocal to bring the Nicolai Creek Unit on production earlier than planned. In November 2000, Unocal. and Marathon assigned their interests to Aurora. Aurora became the operator with 100 percent working interest in the NCU. Aurora successfully restarted sustained production in the NCU-3 well in September 2001 and the AOGCC approved its written plan submitted under AS 31.05.030(1), which qualified the field for the royalty reduction. By letter date July 12, 2002, Aurora requested an order from the AOGCC allowing a spacing exception to drill and test the Nicolai Creek Unit No. 1B ("NCU-1B") and No. 8 ("NCU-8") wells and to recomplete and test the NCU-2 well. The AOGCC issued Conservation Order No. 478, on September 5, 2002, which approved Aurora's request for spacing exceptions but provided that the wells could not be placed on regular production until the AOGCC took additional action to offset any advantage Aurora may have had over other mineral owners by reason of the wells having been drilled to the exception locations. Aurora did not drill the NCU-8 well because it encountered a shallow obstruction while driving conductor pipe, but permitted and drilled NCU No. 9 ("NCU-9") as a replacement well. On October 11, 2002, Aurora entered into aNon-Revocable License for Land Use with the Mental Health Trust Land Office ("MHTLO") for exploration activities from the MHTLO surface estate within T. 11 N., R. 12 W., S.M., Section 29 to State of Alaska Oil and Gas leases ADL 17585 and ADL 17598. Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 3 On September 16, 2002, Aurora and the MHTLO entered into a Memorandum of Understanding ("MOU") regarding the use of surface facilities on the MHTLO lands within T. i 1 N., R. 12 W., S.M., Section 29. The MOU provided for a yearly payment of $5,000 or'h% overriding royalty on production, whichever is greater, for utilizing the surface facilities. This MOU was subsequently amended and replaced October 13, 2003. On September 2, 2003, Aurora submitted an application to the Division of Oil and Gas ("DOG") for approval to revise the participating areas and the NCU boundary. The Division requested additional information for inclusion with the application. It became apparent that the process was going to take an extended period of time due to the number of parties involved, and the unresolved land ownership and title issues. The DOG invited the MHTLO to participate in all. pertinent application. communications, discussions, and meetings between Aurora and the DOG because they are an adjacent mineral interest owner. As early as August 12, 2003, the DOG's goal was to include the MHTLO throughout the process and arrive at a fair decision that the MHTLO would support. In the interim, Aurora proposed to report production from the NCU-1B and NCU-2 wells to the DOG at a five percent royalty rate, and production from the NCU-9 to the Bureau of Land Management ("BLM") using a 12.5 percent royalty rate. On September 25, 2003, the DOG, the MHTLO and BLM agreed with this interim royalty reporting payment methodology, on condition that, upon approval of the final application, Aurora shall submit revised royalty and operator reports to the DOG and BLM retroactive to the first day of production. On October 9, 2003, Aurora submitted a revised application, to the DOG, along with additional supporting confidential geologic and engineering data. On October 16, 2003, the AOGCC issued Conservation Order No. 478A allowing regular production from the NCU-1 B, NCU-2 and NCU-9 wells using the interim reporting methodology. In November 2003, Aurora completed pipeline and facility construction for PA-B and initiated production from the NCU-2 and NCU-9 wells. Aurora worked with the DOG, the BLM and the MHTLO on the application, and on November 4, 2003, the DOG determined that the application included all of the items listed in 11 AAC 83.306 and constituted a complete application for public notice. The DOG issued a public notice of the revised application on November 5, 2003, which DNR posted on the State's web page. The notice was published in the Anchorage Daily News and the Peninsula Clarion on Sunday, November 9, 2003. The public notice invited interested parties and members of the public to submit comments on the application by December 9, 2003. The DOG received two comment letters in response to the pubic notice. The first letter, submitted by the TLO to document its involvement in the process of approving the application. The second letter was from the Kenai Peninsula Borough, which reviewed the proposed unit expansion for consistency with the Kenai Peninsula Borough Coastal Management Program enforceable policies. The Kenai Peninsula Borough had no objection to approval of the application. On January 7, 2004, Aurora submitted a request to suspend the application process until such time that the technical details could be resolved. On January 8, 2004, the DOG approved the suspension of the • Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 4 application and encouraged Aurora to continue working with the interested parties to reach agreement on the revised unit and participating area boundaries. After working with the various parties, on and off for approximately one-year, on January 21, 2005, Aurora submitted a final, revised application that included new tract participation schedules and a proposal to create an additional participating area ("BPA"). The application proposes to include a portion of federal lease AA-8426, approximately 45.30 acres, in the NCU. Aurora is the only working interest owner and there are approximately fourteen (14) overriding royalty owners, including the MHTLO. On July 31, 2006, Aurora applied to the DNR to stratigraphically expand the existing Beluga and South PAs. On October 5, 2006, Aurora requested authorization from the AOGCC to commence regular production from the NCU 1B, 2 and 9 wells, which was approved by Administrative Amendment to Conservation Order 478A on October 27, 2006. On Apri12, 2007, The DNR approved the stratigraphic expansion of the South and Beluga PAs, to include the production from all completed horizons in the NCU-2 and NCU-9 wells. On December 15, 2008, the BLM patented the mineral leases AA-008426 and AA-085789 to the State of Alaska, retaining management authority over the leases pending resolution of certain oil and gas bonding requirements. On June 10, 2009, the BLM waived administration of the former federal oil and gas leases to the State of Alaska. Federal lease AA-008426 became DNR lease ADL 391471 and Federal lease AA-085789 became DNR lease ADL 391472. On August 11, 2009, Aurora received the DNR Lease Operations approval to construct the NC 11 well pad and drill the well. The NC11 well was completed and tested on September 11, 2009. Qn November 6, 2009 the DOG issued approval for the installation of production facilities and associated natural gas gathering lines for the NC 11 well. On November 27, 2009, Aurora began commercial production from the NC 11 well to the Cook Inlet market. Aurora believes there is sufficient history, geologic and engineering evidence to support the formation of the West PA to develop the combined Beluga and Tyonek Reservoirs to be drained by the NC 11 well within the revised Nicolai Creek Unit under a unified Plan of Development. PARTICIPATING AREA DECISION CRITERIA AS 38.05.180(p) gives DNR the authority to approve oil and gas units and participating areas. The DNR Commissioner ("Commissioner") reviews unit and participating area applications under AS 38.05.180(p) and 11 AAC 83.301 -11 AAC 83.395. By memorandum dated September 30, 1999, the Commissioner approved a revision of Department Order 003, and delegated this authority to the Division of Oil and Gas Director ("Director"). Under 11 AAC 83.303(a), the Director will approve the application upon finding that it will: 1) promote the conservation of all natural resources; 2) promote the prevention of economic and physical waste; and 3) provide for the protection of all parties of interest, including the state. Subsection .303(b) sets out six criteria that the Director will consider in evaluating the application. A discussion of the subsection .303(b) criteria, as they apply to this application, is set out directly below. • Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 5 Pursuant to 11 AAC 83.351(a), a participating area may include only land reasonably known to be underlain by hydrocarbons and known or reasonably estimated through use of geological, geophysical, or engineering data to be capable of producing or contributing to the production of hydrocarbons in paying quantities. Under 11 AAC 83.395(4), "Paying Quantities" means: Quantities sufficient to yield a return in excess of operating, costs, even if drilling and equipment costs may never be repaid and the undertaking as a whole may ultimately result in a loss; quantities are sufficient to yield a return in excess of operating costs unless those quantities, not considering the costs of transportation and marketing, will produce sufficient revenue to induce a prudent operator to produce those quantities. 1) Environmental Costs and Benefits Approval of the West PA and the expansion of the Nicolai Creek Unit have no environmental impact. This Decision is an administrative action and does not authorize any surface activity. Potential effects on the environment are analyzed when permits to conduct exploration or development in the unit area are reviewed. In fact, unitized development has less impact on the environment than development on a lease-by-lease basis which can result in duplication of facilities and additional surface impacts. 2) Geological and Engineering Characteristics of the Proposed West PA The State's regulation 11 AAC 83.356(a) provides that a unit must encompass the minimum area required to include all or part of one or more oil or gas reservoirs, or potential accumulations. Aurora's engineer and contract geologic and geophysical staff evaluated all pertinent data necessary to delineate the extent of the Tyonek and Beluga reservoirs underlying the NC 11 well and have submitted that data and interpretation to the DOG technical staff for evaluation. This data included: geologic cross sections, structure maps, electric log analyses, and interpreted seismic data to insure if the proposed unit area meets the regulatory criteria. The reservoir sandstones of the NCU belong to the Oligo/Miocene Tyonek and Beluga Formations. Only those sands of the Tyonek Formation (Carya 2-1.1) are currently being produced from the NC 11 well. However, the NC1 I well was completed for production from the upper Beluga Tsuga 2-5 to 2-8 sands. Deposition of these sands occurred within the Cook Inlet Basin, a feature characterized as an elongate, northeast trending, fault-bounded forearc basin that extends from the Matanuska Valley south along the Alaska Peninsula. The northwestern reaches of the Cook Inlet forearc basin are defined by a series of tight anticlines and associated structures that deforms the Tertiary section and provides traps for both oil and gas. These features are part of a transpressional regime that results from strain transfer between the Castle Mountain Fault to the north. and Bruin Bay Fault to the west. The structures manifested within the NCU have evolved through such processes. Subsurface geology of the West PA of the Nicolai Creek Unit indicates a combination structural and stratigraphic trap with gas trapped in Lower Beluga and Upper Tyonek sandstones. Sandstone units are draped over afour-way closure anticline formed along asouthward-plunging axis on the west side of aneastward-verging fault (interpreted to be the northern extension of the Trading Bay fault). • Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 6 Similar settings exist in the subsurface of the Beluga PA and the South PA of Upper Tyonek gas bearing sandstones trapped within a fold and closed against a dominant west-east cross-fault (the Nicolai Cross Fault) that splays off the aforementioned Trading Bay Fault to the east. The Nicolai Cross Fault appears to separate the structure of the North PA from that of the West, Beluga and South PA. Within the North PA and South PA, reservoirs sandstones are restricted to the Upper Tyonek Formation. Eight individual sand members have been identified from log correlation and mapped across the Nicolai Creek field. Within the Nicolai Creek field, individual. sands have been assigned names based on standardized industry palynological zonation. The sandstones are within the Carya 2 palynological zone and have been subdivided using an appropriate numeric designation (2-1.1, 2-1.2, 2-2.1, 2-2.2, 2-2.3, 2-4.2, 2-5.1, and 2-6.1). Log data indicate the NCU wells show the relative conformity of the shallower Carya 2-1 through Carya 2-23 section with some possible expansion of the deeper Carya 2-4.2 through Carya 2-6.1 section. Within the Beluga PA, reservoirs sandstones are restricted to the Lower Beluga Formation. Ten individual sand members have been identified from log correlation and mapped across the Nicolai Creek field. Within the Nicolai Creek field, individual sands have been assigned names based on standardized industry palynological zonation. The sandstones are within the Tsuga 2 palynological zone and have been subdivided using an appropriate numeric designation (2-1.1, 2-1.2, 2-2.1, 2-2.2, 2- 2.3, 2-4.2, 2-5.1, 2-6.1, 2-7.1 and 2-8.1). Log data indicate the NCU wells show the relative conformity of the deeper Beluga Tsuga 2-5 through Tsuga 2-8 section. Since the Tyonek and Beluga reservoirs are stacked sandstone bodies, the composite areas of the reservoir extent, which is controlled by structure and sandstone distribution and confirmed by seismic and well data, are summed together to define the outline of the combined West PA. (Beluga Tsuga 2- 5 through Tyonek Carya 2-1 section). The NC 11 was completed to a MD/TVD depth (PBTD) of 3,509 feet. The Beluga Tsuga 2-5 thru 2-8 sands are producible from perforations from 920 feet to 2,099 feet. The Tyonek Carya 2-1 sands are producible from perforations from 2,260 feet to 2,362 feet. The Beluga and Tyonek sands are presently separated within the wellbore by a mechanical -set packer at 2,175 feet. According to mapping based on seismic and pressure data from the Schlumberger XPT tests, the Beluga Tsuga sands in the NC 11 are believed to be fault separated from the Nicolai Creek Unit No. 9 well ("NCU 9"). The pressure data indicates the NCU9 to be partially depleted below 1,300' (bhp at 1384' was estimated from surface pressure on 9/22/09 to be about 263 psia-3.65 ppg gradient), and the NC11 showed no significant depletion at correlative depths, except for a slight depletion at 1,660' to 1,673' where the MDT log found an 8.0 - 8.13 ppg gradient versus 9.0+ ppg elsewhere in the common depths.. The XPT tests in NC 11 indicated average bottom-hole pressure of 1113 psia (9.45 ppg gradient) in the Tyonek Carya 2-1.1 and 1138 psi in the Carya 2-1.2 (9.3 ppg gradient), indicating no depletion. Bottom-hole pressures in the offsetting NCU 1B in the Carya 2-1.2 is estimated at 346 psia (2.9 ppg) and in NCU 2 in the Carya 2-1.1 and 2-1.2 are estimated at about 315 psia (2.6-2.8 ppg gradient- estimated from surface pressures in May 2009 and September 2009, respectively). Thus, it does not appear that the Tyonek Carya 2-1 reservoirs in the NC 11 are pressure connected to the partially depleted 2-1 reservoirs in the # 1 B and the #2. • Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 7 According to electric log and mud log data, the Beluga Tsuga sands are separated from the Tyonek Carya sands by 160' of tight (low permeability) sandstone and siltstone, carbonaceous claystone, clay, and 2 coal seams. The proposed West PA is defined by the surface acreage covering the anticipated productive Beluga and Tyonek Formation sandstones. Since both reservoirs appear to be stacked sandstone bodies, the composite areas of the reservoir extent, which is controlled by structure and sandstone distribution and confirmed by seismic and well data, are summed together to define the outline of the West PA. The proposed outer extent of the West PA follows the 10-acre aliquot part sub-section descriptions, which is consistent with the methodology used to define the South and Beluga PAs. 3) Prior Exploration Activities in the Nicolai Creek Unit The NCU was formed by Texaco on February 29, 1968 after discovering gas in the NCS1A and NCU- 2 wells in 1966 and the NCU-3 well in l 967. NCS-1 A produced an average 1.3 MMSCF/day of dry gas from December 1968 to February 1969 and NCU-2 produced an average of 0.4MMSCF/day of dry gas from October 1968 through November 1969. Upon completion of the aforementioned periods of productivity both NCS-lA and NCU-2 were shut-in. NCU-3, produced an average of 0.3 MMSCF/day dry gas from April. 1969 through October 1977, when it was shut-in. During the period 1970 to 1988 three wells, NCU-4 (1970), NCU-5 (1972) and NCU-6 (1988) were drilled and they proved to be dry. In 1988, Unocal and Marathon acquired the field, each holding a 50% working interest. Unocal was designated the NCU operator. In 1991, Unocal worked over NCU-4 but failed to achieve commercial production. In 2000, Aurora took over the unit as operator with a 100% working interest. In 2000 and 2001, Aurora worked over NCU-3, sidetracked NCS-lA to the NCU-1B location, and repaired NCU-2. In 2001, Aurora installed production facilities and a pipeline for the NCU-3. It commenced production at an average rate of 1.1 MMSCF/D with an average of 35 barrels of water per day and continued to produce February 2004 when a workover to add additional perforations was completed. In 2003, Aurora acquired a new 3-D seismic survey and drilled NCU-9 with abottom-hole location between the two participating areas but outside of the NCU. Aurora also established new facilities and a pipeline to the SPA's drill site in 2003. During 2003, Aurora produced gas from NCU-9 and NCU-2 at rates of 2.3 and 2.5 MMSCF/Day respectively. 4) Plan for Development of the Participatine Areas The NC11 well was included in the Thirty-fifth and Thirty-Sixth Plans of Development for the Nicolai Creek Unit. The Thirty-Sixth Plan of Development was approved by the DOG on December 3, 2009. Future anticipated development activities for the West PA will be included in the Thirty-Seventh Plan of Development to be submitted before October 10, 2010. 5) Economic Costs and Benefits to the State of Alaska Approval of the proposed West PA and associated field development will provide economic benefits to the state. The long-term goal is to maximize the physical and economic recovery of hydrocarbons • ~ Temple Davidson Nicolai Creek Unit Expansion and West PA December 16, 2009 Page 8 from each of the productive reservoirs. Maximum hydrocarbon recovery will enhance the state's long- term royalty and tax revenue stream. Any additional administrative burdens associated with the participating areas are far outweighed by the additional royalty and tax benefits derived from production. Aurora is submitting with this PA application the appropriate tract allocation schedules for allocating production and costs among the leases in the participating areas. Aurora has received a production accounting code for the Tyonek production from the DOG, and has requested an accounting code for the Beluga production, pending a Conservation Order from the AOGCC to commingle the Beluga and Tyonek productions in the same wellbore. Aurora will submit to the DOG's Royalty Accounting Section all royalty and operator reports to properly allocate the production from the NCU-1B, NCU-2 NCU-3, NCU-9 and NC 11 wells to the North PA, South PA, Beluga PA and the West PA. The production will be allocated based on the approved tract participation schedules for each participating area. Aurora will report production from the SPA, NPA, BPA and WPA using production accounting unit codes NCPA, NCPB, NCBE and LCO1/LC02 respectively. A $500.00 unit expansion application fee is enclosed in accordance with 11 AAC 05.0110 (a}(10)(E). Please let me know if you need additional information. Sincerely, ~ ~~ Bruce D. Webb Manager, Land and Regulatory Affairs Nicolai Creek Field: Application for PA for NCU No. 11 Well Aurora Power, L.L.C. Ed Jones Executive Vice-President r November 24, 2009 Structure M a: Ts u a 2-5 De th p g p / 44291 E f \ ~/ esa3s~ E8> 78E "Y=~4t 74i5U4 // E833'i ~-""' ~ i, % J„ 1 ~ ~ ~ ~~v i ~i' ~~r Soso oEs I .. i~~ / ~ ~ °: 4 i / / ~ 1110.8C6 1 +r ~ ~ ~ 4j , 123: ?41 f i_ \ ~ , R~~~ ~~o~, `f•+.r®~^~„~,~' ..,. 4 ° / J~ // +.d ,~~? I 123?tea 1353 615 ~`~ i ~ % /~ / /~ ~ ^ j ~ L~ / / J n ~ i 1414.3'_2 ~ / ._y' ~ ~N pl I 1~ ~ / ~ f j ~~y/_~ 15358:6 J / ~+ 1 ( RA ' S ~ l / J J/ ~ 1536.143 ~j 160 ~E° ~~ ~ ~ ~~ / ~ ~I fl ~ ~ ~ ~ / 7 l/ / _ 171'.B78 ~ ~ ~\ti ~ /! / AURURNf,A ~% ' O J J J /'~'~ ie~siiz / "sg, I !l NCU>: is3os4s Key Well: ~ '~ ' Nicolai Creek 3-D Line 110 X03'°"'- -~` Nicolai Creek Unit No. 11 ~ , ~~.:~~I~, C~;1,,' ~ J / L7 ~ ~ 0 ~~ / C7 C r G,,,. , ,rr ~ ~ ~((( BOG ~ ~\V ~ °~ : - ~r. ~ ~~= ~ ~~ Proposed PA: 46 Ac for ~r ~~ , , ~~ 11 Jzi J ~ ~ ~t~.1 ~ ,~%... Tsuga 2-5 Horizon ~ %~ ~ \ ~ +~ TE ApU 1\ ~ ~ \\ CU : Tt ~~if ~~ , ~~ ~ SS'•g ~~ ~ J \ AUR OD21GA:r) :: J // 1 ~ / / NCU : 1 ~!/ ~, ,,,_, s j 1006) rt / + `-03 / j ; 'zooza o ~ cV:~=6~Tt~~Y f ~` 1, '~ f J ~ % i l , J 4 NC~ ~g ~ ~ l 2033 ~ l~ TE~~ ~ 117To ~ ~/ ~ ~ ~ }/ 8v0 ~ ~ 1 ~ ~~~ / / ~ 1 ;,~ , ' o I Contour Interval: 50' Structure Map: Carya 2-1.1 (Depth) ~, .+ ,~ , fl ._ 1 Jp ~ ~ Ike.^~ PhC II ~ l 1013]tp,:r .~~ ~~:~~ ~ s a 1 Key Well: ~ ~y Nicolai Creek Unit No. 11 ,~I,;r _. _._-__: Proposed PA: 48 Ac for ~ f ~' ~ U~ wiY~ Carya 2-1.1 Horizon - ~ ~~ ~ \ . - q 77 T ~~. ~JEX~k ,~/ I --: ~ ~ f ~ { ~ ~ . d ~~` ~. f , k . \ ~: 1. jl ' 1~~ 1 4 ~ y.~ 1~ Ili :i ... t. t.>i _ f ~ - ~ ) t , t 273.8x1 f '- "^--' - I I t 1368 E23 ' ~ ~ % ~ " 1558.185 ~ ~ ~ ~ ~ ~ 1652.966 1747.747 ~ i ~ ~ ~ tens29 .r -~ ~ ; ~ ~ ~ ~ ~ + ,93731U 2032 09, ' ~ ~ i - = ~ t "°' 2126672 A ~ 222f b53 t~ 2316435 Ni of i Creek 3 D Li 110 2.,,z,6 c a - ne 2505 987 } ~.~~ 2500 776 1 ~ i ~ r . ! . ~ z iso o ~ O ~ , , ~ r, ='r 2885.1 2. ~ 5 i . ~ ' ,, v :3~ 2979.903 3074684 /~ ~~ ~ ~ re ~ ~ ~ ~ ,~ ~ii •, V 3t 69465 ~ ( ~ ~ ~ ,r, 1 3264.246 ~ \ v ~ 1 ~ ,, ° . ~ ~` ~ 3359 028 3,~~ v ' ~~~ ~ O I, ~ A 3548 S90 v .,; ,, 3643 37 x ~ ry _' 8J~ , ~ ae - ~ tiT 1 ~ .~~ .r `` r~ ~~ ~r ~i ~ ~ • `\` \~- '~j` a` y ~~ ~ , r '~~ J 3~J \, F t ' Contour Interval: 50' Nicolai Creek Field • Proposed PA for NCU 11 Well Nicolai Creek 3-D Line 110 (PSTM) West NCU 11 UT8&7,"41.61 UTB&10,19805 f~92327C5B ~75:Of1 Tfi9•`., 979~~ I I I I Ininj: 11 D.0 11 ].0 110.7 1100 110 0 rasinx zsoo ta7o z2o.7 xao lean i i l~~ l i ~~~ l~ ~ i~ ~ i~ l ~ i~ ~ l r ~~ l i i~ i l i~ I~ ~ ~~ I ~ ~,~ UT~•12.185T I 11CO 1;c o 11aC 140.C I ~ ~ ~ I • ~ Nicolai Creek Unit Proposed West Participating Area T. 11 North, R. 12 West, Seward Meridian Section 30 Propoosed st Par~icipati g Area a m ,~ i r i i + ~'? i i ~ Combined Belu a and T onek ~ ~ y 'Resew rs ~ ADL ~ 391472 ---- .~ ~o~ ., .., ,~~ ~ ,~ ,~ ~Mr ~.. ~~, ~... o ~~ Ni ;,~t ~~r~~~~.k, ;iii ADL _ ~ .-------- --- 391471 ' ~~ne . ~ ~ ~,: auPrOx~mate~sh~re ADL 17598 ~.- - ADL ` 17598 ~F` ~- - E -u~~~°'' ! C o oak I n'l e t Aurora Gas, LLC i •-, Nicolai Creek Unit -Exhibit A North PA, South PA, Beluga PA, and West PA Tracts NORTH T. 11 N., R. 12 W., S.M., Alaska SEC 18 SEC 17 ~ ~ W IV NICO I CKEEK NICOLAI CKEEK U IT 3 UNIT 5 SEC 19 ~ SE 20 NORTH PA TRACTS ADL 63279 NICO I CKEEK NIT 7 ADL-391471- ADL-391472 BELUGA PA RACTS SEE SHEET 2 WEST PA TRACTS ADL-3 91472 ADL 391472 I CREEK and ADL 17598 NIT 1 B, 2 ~ 9 ADL- 17598 SOU PA TRACTS HEET 3 ADL-17585 i SEC 31 SEC 32 T11 N SHEET 1 OF 3 ~,~ ~~~, _'" ~ , UPDATED LLC G a `~~~ as, urora 12/28109 -M Exhibit "B" NICOLAI CREEK UNIT AGREEMENT Unit Area ico ai Creek Unl Committed Working Interest Owners 8 Tract Participating Lessor/Royally Owner Overriding Royalty Percentage Working Bourough Number Deacriptlon of Participating Lands Gross Acres Acreage Lease Serial No. Royalty Interest ORRI Owners Interest Interest Expire8on Dete Recorclfng District Book Page 1 T. 11 N., R. 12 W., S.M. Section 20: W12; Comprising a total of apprmdmately 320.0 ewes. 2 T. T1 N., R, 12 W., S.M. Section 29 & 30: being etl that portlon of Section 29: 312NW1/4SW1/4; comprising approximately 2.416 acres, landward of the shoreline along the mean high tide of Cook Inlet, and all of the Ni/2NW1/4SW1/4, SWi/4SW1/4NW1/4; comprising approximately 30.0 acres; end, being all that unaunreyetl portion aT Section 30: SEi/4NEi/4SEi/4; comprising approximately 2.097 acres, landward of the shoreline along the mean high tide of Cook Inlet. and all of the NE1/4NE1/4SE1/4; comprising approximately 10.0 acres; Compdaing a total of appro>ametely 44.513 acres. 3 T. 11 N., R. 12 W., S.M. Section 29: being all tide and submerged lends within the S1RNW1/4SW1/4, N72SW1/4SW1/4; Comprising a total of approximately 37.584 acres. 4 T. 11 N., R. 12 W., S.M. Section 90: being all ride and submerged lands within the SEt/4NE1/4SE1/4; Compdaing a total of approximately 7.903 acres. 5 T. 11 N., R. 12 W., S.M. Section 90: being all that portion of SecBon 30: W12SE1/4SE1/4, E1/25Wi/4NE1/4, W1Y2NE1/4SE1/4, NWi/4SE1/4, landward of the shoreline along Me mean high tide of Cook Inlet Compdaing a total of approximately 75.900 acres. 320.0000 320.0000 State of Alaska 0.1250 " Alice F. 8 J. Bailey Hinkle ADL-83279 Mitaue 8 Robert K. Mesuda Kelso & Marcella T. Maeuda Donald L. Stroble Alice CoultheM Halsuyc 8 ftsuo Mtyamoto Jayne V. 8 Fred S. Hokame Rose M. 8 Bemerd Mereeh Ruth S. 8 Mobley Phads Patricia 8 Jack B Conway Laveme I. Traxinger John R. Roderick David Bolens total 44.5130 44.5130 State of Alaska 0.1250 ` Alice F, & J. Bailey Hinkle ADL-391471 Mitsue 8 Robert K. Masuda Kelso 8 Marcella T. Masuda Donald L. Stroble Alice Coulthard Hetsuyo 8 Etsuo Mtyamoto Jayne Y. 8 Pred S. Hokame Rose M. 8 Bemerd Maresh Ruth S. 8 Mobley Pheris Patricia 8 Jeck B Conway Laverne I. Tre>anger John R. Roderick David 8olena total 37.5840 37.5840 State of Alaska 0.1250' David Bolens ADL-17585 total 7.9030 7.9030 State of Alaska 0.1250' Devil Bolens ADL-17598 total 75.9000 75.8000 State of Alaska 0.1250 ADL-391472 B T. 11 N., R. 12 W., S.M. Section 30: 54.1000 54.1000 State of Alaska 0.1250' being all tlde end submerged lands wtthin the ADL-17598 Alice F. 8 J. Bailey Hinkle Mitsue 8 Robert K. Masuda Keiso & Marcella T. Meauda Donald L. Stroble AIICe Couhhard Hatsuyo 8 Etsuo Miyamoto Jayne Y, 8 Fred S. Hokame Rose M. 8 Bernard Maresh Ruth S. 8 Mobley Phads Patricia 8 Jack B Canvey Laverne I. Trexinger John R. Roderick David Bolens total David Bolens total 0.0025794 Aurora 100% 0.0028571 0.0028571 0.0025794 0.0025794 0.0028571 0.0025794 0.0025794 0.0025794 0.0025794 0.0025794 0.0012500 0.0100000 0.0404585 0.0025794 same as above 0.0028571 0.0028571 0.0025794 0.0025794 0.0028571 0.0025784 0.0025794 0.0025794 0.0025794 0.0025794 o.oolzsoo 0.0100000 0.0404585 0.0100000 same as above 0.0100000 0.0100000 same as above 0.0100000 0.0025794 same as above 0.0028571 0.0028571 0.0025794 0.0025794 0.0028571 0.0025794 0.0025794 0.0025794 0.0025794 0.0025794 0.0012500 6.a100000 0.0404565 0.0100000 same as above 0.0100000 HBP Anchorage N/A N/A • HBP Anchorage N/A N/A HBP Anchorage N/A N/A HBP Anchorage 047 0083 HBP Anchorage N/A N/A HBP Anchomge N/A N/A SWt(4NE1/4SE1/4, NW1/45E1/4SE1/4, NW1/4SE1/4, NWt/43E1/4; Comprising a total of approxmately 54,100 acres. Total Unitized Land: 175.4870 175.4870 'Currently subject to Royalty Reduction Relief at .OS Exhibit "B-4" NICOLAI CREEK UNIT AGREEMENT West Participating Area ~~a~ Creek Unit Trect Committed Working Interest Owners 8 Tract Participating Participating Lessor /Royalty Owner Royalty Overriding Royalty Percentage Working Number Description of Participating Lands Gross Acres Factor (PA) Acreage Leese Serial No. Interest ORRI Owners Inleres! Interest Expiration Dale S T. 11 N., R. 12 W., S.M. Section 30: 75.9000 0.5838482 75.9000 State of Ataska 0.1250' AAce F. 8 J, Bailey Hinkle being ell that portion of Section 30: ADL-391472 Mitsue 8 Robert K. Masuda W1/2SE1/4SE1/4, E1/2SW1l4NE1/4, W1/2NE1/4SE1/4, NW1/4SE1/4, Keiso 8 Marcella T. Masuda landward of the shoreline along the mean high tide of Cook Intel; Donald L. Sfroble Comprising a total of approximately 75.900 acres. Alico Coulthard Hatsuyo 8 Etsuo Miyamoto Jayne Y. 8 Fred S. Hokama Rose M. 8 Bernard Maresh Ruth S. 8 Mobley Pharis Patricia 8 Jack 8 Conway Lavema I. Trexinger John R. Roderick David Bolens total 8 T. 11 N., R. 12 W., S.M. Section 30: 54.1000 0.4161538 54.1000 Stale of Alaska 0.1250' David Botens being all tide and submerged lands within the ADL-17598 total SWt/4NE1/4SE1/4, NW1/4SE1/4SE1/4, NW1/4SE1/4, NW1/4SE1/4; Comprising a total of approximately 54.100 acres. Total Participating Area Land: 130.0000 1.0000000 130.0000 0.0025794 0.0028571 0.0026571 0.0025794 0.0025794 0.0028571 0.0025794 0.0025794 0.0025794 0.0025794 0.0025794 0.0012500 6.0100000 0.0404565 Aurora 100 % HBP 0.0100000 Aurora 100% HBP 0.0100000 • • Currently subject to Royalty Reduction Relief at .OS