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Home My WebLink AboutCO 123 A • • Index Conservation Order No. 123A Swanson River Field Soldotna Creek Unit Hemlock Oil Pool 1. May 15, 2000 Unocal's request for Admin Approval for variance Rule 5 2. May 18, 2000 Unocal's request for an Administrative Application for Variance Rule 5, CO 123A for Soldotna Creek Unit #23A -9 3. September 18, 2012 Hilcorp Application for Spacing Exception on SCU 44 -33 4. September 24, 2012 Hilcorp Application for Spacing Exception on SCU 43- A-33 5. Emails Conservation Order No. 123A r t STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION OF UNION )Conservation Order No. 123A OIL COMPANY OF CALIFORNIA for an order expanding the Swanson River Field, Hemlock Oil Pool, to include the G zone of the Tyonek formation and the lower portion of the Hemlock formation. IT APPEARING THAT: August 23, 1973 (original order) First Amendment: December 5, 1995 Swanson River Field Hemlock Oil Pool The Commission issued Conservation Order No.123 for the Swanson River Field, Hemlock Oil Pool, on August 23, 1973. Conservation Order No. 123 replaced Conservation Order #8 and Conservation Order No. 9. 2. Union Oil Company of California Inc. ("UNOCAL") became sole operator of the Swanson River Field on December 15, 1992. 3. By letters dated October 2, 1995, and October 19, 1995 UNOCAL requested expansion of the Swanson River Field, Hemlock Oil Pool to include the G zone of the Tyonek Formation and the lower portion of the Hemlock Formation. The correspondence demonstrated all affected parties had been notified prior to the subject request. FINDINGS: The Tyonek G zone is a predominately sandstone interval within the Tyonek Formation that immediately overlies the Hemlock Formation and corresponds to the 10,085 foot to 10,230 foot measured depth interval in the Soldotna Creek Unit 41-4 well. Two discrete sandstones are present in the interval; the upper sandstone is designated the Gl sand and the lower the G2 sand. 2. Average net pay is estimated to be approximately 20 feet and 40 feet in the Gl and G2, respectively. The sands are restricted to the southern portion of the field. Initial production from the Tyonek G zone was established in August 1974 in the Swanson River Unit well SRU 32-33. The production rate from this interval Conservation Order No.~23A August 23, 1973, First Amendment December 5, 1995 Page 2 declined from 467 bopd to rates the operator believed were uneconomic in approximately two year. 4. Development operations within the Tyonek G zone were undertaken by UNOCAL in March 1995. Since that time four Swanson River Field wells have been completed in the interval. 5. The oil water contacts for the Tyonek G zone sandstones have not yet been precisely delineated; however, available evidence indicates they are likely to fall within a range comparable to that exhibited by the Upper Hemlock Formation sands. 6. The lithologic properties of the Tyonek G zone sandstones, including porosity and permeability, are very similar to those in the Hemlock Formation. 7. The fluid properties and reservoir pressure in the Tyonek G zone are nearly identical to those originally found in the underlying Upper Hemlock Formation. The Tyonek G-2 oil API gravity was 37.7 degrees, GOR of 370 scf per stb, and initial pressure 5540 psi. Initial properties of oil in the Hemlock Pool were 37 degrees API gravity, GOR 375 scf per stb, and 5580 psi initial pressure. 8. Preliminary estimates of original oil in place in the Tyonek G zone indicate approximately 15 million stock tank barrels. 9. The Lower Hemlock Formation is defined as the interval between the measured depths of 10,585 feet and 10,815 feet in the Soldotna Creek Unit we1141-4. This interval was originally excluded from the Swanson River Field, Hemlock Oil Pool. 10. Since December 1994, the Soldotna Creek Unit 41A-8 well has sustained production generally in excess of 100 bopd from the Lower Hemlock Formation. 11. The fluid properties and reservoir pressure in the Lower Hemlock Formation are dissimilar to those in the Upper Hemlock Formation. The Lower Hemlock production has an API gravity of 26 degrees and a GOR of 1100-1500 scf per stb with an original pressure of 5331 pounds per square inch. 12. Lithologic differences between the Upper and Lower Hemlock Formation are minor. 13. The potentially productive area for the Lower Hemlock interval is currently thought to be restricted to the crest of the Swanson River anticline in the Soldotna Creek Unit. 14. Preliminary estimates of original oil in place in the Lower Hemlock Formation indicate approximately 20 million stock tank barrels. Conservation Order N~23A August 23, 1973, First Amendment December 5, 1995 Page 3 15. The volume of original oil in place estimated in the Tyonek G zone and the Lower Hemlock, requires reliance on existing wellbores and unit infrastructure to maximize reserves from these intervals. CONCLUSION: Pool rules must be sufficiently flexible to allow efficient exploitation of this faulted and lenticular reservoir under a gas and water injection pressure maintenance program. 2. Expansion of the Hemlock Oil Pool to include the Tyonek G-zone and the Lower Hemlock intervals will prevent waste, protect correlative rights and improve ultimate recovery from the Swanson River Field. 3. UNOCAL has satisfied the conditions necessary for administrative approval of its October, 1995 request to expand the Hemlock Oil Pool in the Swanson River Field. 4. Administrative approval is allowed by Rule 7 of Conservation Order No. 123. NOW, THEREFORE, IT IS ORDERED THAT the pool rules for the Swanson River Field Hemlock Oil Pool are amended to include the G zone of the Tyonek Formation and the lower portion of the Hemlock Formation and the findings, conclusions and administrative record for Conservation Order No. 123 are adopted by reference and incorporated in this decision. The following rules apply to the Swanson River Field, Hemlock Oil Pool: Rule 1: Previous Orders Revoked Conservation Orders Nos. 8 and 9 are hereby revoked. Rule 2: Rules Area These rules apply to the combined area of the Swanson River and Soldotna Creek Units described as follows: T. 7N.. R 9W.. S.M. T 8 N.. R 9 W.. S.M. Section 3:W'/Z Section 9:SE'/4NE%4, E'/ZSE%4, NW'/4SE%4 Section 4:A11 Section 10:W'/ZW'/~, SE%4NW'/4, E'/zSW'/4, W%ZSE'/4, SE'/4SE'/4 Section S:E'/2 , SW'/4 Section 15:A11 Section 8:E'/2, E%ZW'/2, NW'/4NW`/4 Section 16:E'/z Section 9:A11 Section 21:NE'/4, E%ZNW'/4, E'/zSE%4, NW'/eSE%4, NE'/4SW'/4 Section 10:W%zW%z, NE'/4 NW'/4 Section 22:A11 Section 16:W'/zNE'/a, NE'/4NE'/,, NW'/4 Section 27:NE'/4, W%zSE'/a, W%z Conservation Order N~23A August 23, 1973, First Amendment December 5, 1995 Page 4 Section 17:NE'/4NE'/4 Section 28:E'/ZE%2, SW'/,NE%4, W%zSE'/4, E%ZSW%4 Section 32:E'/zSE'/a, SW'/4SE%4 Section 33:E'/z, E'/zW'/z, SW%aNW%a, W%zSW%a Section 34:W'/ZNE'/e, W'/z Rule 3: Pool Definition The Hemlock Oil Pool includes all intervals which correlate with the interval 10,085 feet to 10,815 feet in the Standard Oil Company of California, Soldotna Creek Unit 41-4 well. Rule 4: Pressure Maintenance Projects The injection of gas and water for the purpose of pressure maintenance, secondary or tertiary recovery, and conducting pilot and infectivity tests is permitted in the Hemlock Oil Pool of the Swanson River field. Rule 5: Spacing Not more than two completed wells are allowed in any governmental quarter section. No well shall be completed less than 500 feet from the Swanson River Field-Working Interest Agreement Area exterior boundary line. Rule 6: Hemlock Oil Pool Reservoir Report. A surveillance report will be required within one year of regular production following the issuance of Hemlock Oil Pool rules amended to include the Tyonek G zone and Lower Hemlock Formation, and biannually thereafter by December 5. The report shall include but is not limited to the following: a. Progress of any enhanced recovery project and reservoir management summary including engineering and geotechnical parameters. b. Voidage balance by month of produced fluids and injected fluids. c. Analysis of reservoir pressure surveys within the pool. d. Results and analysis of production logging surveys, tracer surveys and observation well surveys. e. Results of any special monitoring. f. Future development plans. Conservation Order No'~23A • August 23, 1973, First Amendment December 5, 1995 Page 5 Rule 7: Administrative Approval Upon request of the Operator and a showing that all affected parties have been notified of such request, the Committee may authorize any operation reasonably designed to further the progress of the project and maximize the recovery of oil from the Hemlock Oil Pool in the Swanson River Field. DONE at Anchorage, Alaska and dated August 23, 1973, amended December 5, 1995. ~..~..®1 g .~ x y. ~~~ David W. ~(ohnston, alrlan Alaska Oil a`~d Gas Co servation Commission /~Q / "'~? uckerman Babcock, Commissioner Alaska Oil and Gas Conservation Commission J. David Orton, P.E., Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM offthe 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by inaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). o TONY KNOWLES, GOVERNOR ALASKA OIL AND GAS 3001 PORCUPINE DRIVE CANCHORAGE. 79-143 995oi-3192 CONSERVATION COMMISSION PHONE: (907) 29-1433 FAX: (907) 276-7542 ADMINISTRATIVE APPROVAL NO. 123A.1 Re: The Application of UNOCAL for the Drilling of the SCU 23A-9 Well in the Swanson River Field Mr. Shannon W. Martin Legal Analyst UNOCAL P.O. Box 196247 Anchorage, AK 99519-7600 Dear Mr. Martin: An application, dated May 18, 2000, requested approval to drill the SCU 23A-9 well, which would be the third completion in the NW '/4 Section 9, T7N, R9W, SM. It is understood by the Alaska Oil and Gas Conservation Commission (Commission) that the drilling and completion of the well should result in accelerated recovery of reserves from the Swanson River Field. The Commission hereby authorized drilling and completion of the SCU 23A-9 well pursuant to Rule 5 of Conservation Order No. 123A. DONE in Anchorage, Alaska this day June _,/, 2000. Cammy Oechsli Taylor Commissioner BY ORDER OF THE COMMISSION Daniel T. Seamount, Jr. Commissioner • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp ) Conservation Order No. 123A.002 Alaska, LLC. to drill and complete the ) Soldotna Creek Unit No 43A -33 ) Swanson River Field development oil well within the same ) Soldotna Creek Unit governmental quarter section as wells ) Hemlock Oil Pool that are, or may be capable of ) producing from the same pool. ) November 29, 2012 IT APPEARING THAT: By a letter received September 25, 2012, Hilcorp requests an order allowing drilling and completion of the of the proposed Soldotna Creek Unit No. 43A -33 (SCU 43A -33) development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. FINDINGS: 1. Hilcorp is the operator of the Swanson River Field, Soldotna Creek Unit and the proposed SCU 43A -33 development oil well, which are located on the east side of the Cook Inlet, Kenai Peninsula Borough, Alaska. The Pooling Agreement for the Swanson River Field' encompasses the Soldotna Creek Unit and the adjacent Swanson River Unit. 2. Hilcorp will re -enter and re -use a portion of suspended well SCU 343 -33 to drill to a potentially undrained portion of the Hemlock Oil Pool that lies within the Soldotna Creek Unit. This new wellbore will be named SCU 43A -33. 3. SCU 43A -33 will be an offshore, deviated development oil well with a surface location 1,245 feet from the south line and 625 feet from the east line of Section 33, T8N, R9W, Seward Meridian (S.M.). The projected top of the productive horizon is 1,984 feet from the south line and 682 feet from the east line of Section 33, T8N, R9W, S.M. The projected bottom hole location is 2,188 feet from the south line and 649 feet from the east line of Section 33, T8N, R9W, S.M. 4. SCU 43A -33 will be located entirely within Federal Lease A028990. 5. SCU 43A -33 will be drilled to, and completed in, the Hemlock Oil Pool within an area governed by Conservation Order No. 123A (CO 123A). 6. SCU 43A -33 will be located within the same governmental quarter section as wells that are, or may be capable of, producing from the Hemlock Oil Pool. 'Pooling Agreement for the Swanson River Field, Alaska; U.S. Department of the Interior, Geological Survey, Memorandum to Chief, Branch Oil & Gas Operations dated December 28, 1964 CI 123A.002 • November 29, 2012 Page 2 of 3 7. Rule 5 of CO 123A specifies that not more than two completed wells are allowed in any governmental quarter section. However, Rule 7 of CO 123A states: "Upon request of the Operator and a showing that all affected parties have been notified of such request, the Committee (AOGCC) may authorize any operation reasonably designed to further the progress of the project and maximize the recovery of oil from the Hemlock Oil Pool in the Swanson River Field." 8. Hilcorp provided evidence that the spacing exception application and the Permit to Drill Application form (AOGCC Form 10 -401) were sent by certified mail to all affected working interest owners and landowners —i.e., Cook Inlet Region, Inc. and the U.S. Bureau of Land Management —on September 24, 2012. CONCLUSIONS: 1. An exception to the well spacing provisions of Rule 5 of CO 123A is necessary to allow drilling and completion of the SCU 43A -33 development oil well in order to maximize recovery of Hemlock Oil Pool reserves. 2. An exception to the well spacing provisions of Rule 5 of CO 123A to allow drilling and completion of the SCU 43A -33 development oil well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: Hilcorp's September 24, 2012 application for an order granting an exception to the well spacing requirements of Rule 5 of CO 123A to allow drilling, completion and regular production of the SCU 43A -33 development oil well is GRANTED. Hilcorp may proceed as long as it complies with the terms of the Pooling Agreement for the Swanson River Field, the Swanson River and Soldotna Creek Unit Agreements, applicable Alaska laws, and all other legal requirements. DONE at Anchorage, Alaska and dated November 29, 2012. 4 4141t Cathy ' . Foerster Daniel T. Seamount, Jr. ' . Norman Chair, Commissioner Commissioner Commissioner c ,A.SKA 0 4 ` jf k t 7MM%;i CI 123A.002 • November 29, 2012 Page 3 of 3 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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 AOGCC 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 AOGCC 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 AOGCC mails, OR 30 days if the AOGCC 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 AOGCC 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 AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tlhe questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." ' I 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. • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 29, 2012 3:26 PM To: 'Angela Singh'; Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); 'Brooks, Phoebe'; Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); 'Makana Bender; McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqua!, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Wallace, Chris (DOA sponsored)'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'CA Underwood'; Casey Sullivan; 'Dale Hoffman'; David Lenig; 'Donna Vukich'; Eric Lidji; Erik Opstad; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; 'Greg Mattson'; Heusser, Heather A (DNR); 'James Rodgers'; 'Jason Bergerson'; Jennifer Starck; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; Lois Epstein; Marc Kuck; 'Marie Steele'; 'Matt Gill'; Melissa Okoola; 'Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Talib Syed; Terrace Dalton; 'Wayne Wooster; 'Wendy Wollf; 'William Hutto'; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; 'AKDCWeIIIntegrityCoordinator; 'alaska @petrocalc.com'; 'Alexander Bridge'; 'Anna Raft; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Bruce Webb'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell; 'D Lawrence'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David Duffy'; 'David House'; 'David Scott; 'David Steingreaber; 'Davide Simeone'; 'ddonkel @cfl.rr.com'; 'Dudley Platt; 'Elowe, Kristin'; 'Francis S. Sommer; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Lastufka'; 'Joe Nicks'; 'John Easton'; 'John Garing'; 'John Spain'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Julie Litt le'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Laura Silliphant (laura.gregersen @alaska.gov)'; 'Luke Keller; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.haniey @anadarko.com); 'Mark P. Worcester; 'Marguerite kremer (meg.kremer @alaska.gov); 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; 'Mikel Schultz'; Mindy Lewis; MJ Loveland; mjneison; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker @alaska.gov); 'Paul Mazzolini'; Randall Kanady; Randy L. Skillern; 'Randy Redmond'; 'Rena Delbridge'; 'Renan Yanish'; 'Robert Brelsford'; Robert Campbell; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; 'Stephanie Klemmer; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; 'Suzanne Gibson'; Tamera Sheffield; 'Taylor, Cammy 0 (DNR)'; Temple Davidson; Teresa imm; Thor Cutler; 'Tim Mayers'; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Yereth Rosen Subject: C0123a -002 (SCU 43A -33) Spacing Exception Attachments: co123a 002.pdf Joy J. Coloinhie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 1 Easy Peel® Labels A A ® Bend along line to i . n AYERY® 5960TM i Use Avery® Template 5160® Feed Paper — ' expose Pop -up Edge A l `�J L Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston St, Ste. 200 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Richard Neahring Jerry Hodgden NRG Associates Mark Wedman Hodgden St. Oil Company President Halliburton Golden, CO 80401 -2433 P.O. Box 1655 6900 Arctic Blvd. Golde Colorado Springs, CO 80901 Anchorage, AK 99502 Bernie Karl CIRI 011 Tools Too K &K Recycling Inc. Land Department Bak Baker r 11 C P.O. Box 58055 P.O. Box 93330 Anchorage, t. . AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Cir. Barrow, AK K 99723 P.O. Box Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Niniichik, AK 99639 Soldotna, Al( 99669 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669 -7714 ‘ c * A8 .".... Q ..._c_ c q9,. , � y. A www.ave com 1 Etiquettes faciles i peter ; Repliez a is hachure afin de 1 I Sens de me a -ann -c rs -evc wvr -n�i r•w rrai ♦ Bend along line to ® TM Easy Peel® Labels 9 � CA 5960 Use Avery® Template 5160® , Feed Paper ' expose Pop -up EdgeTM new.., i......,. David W. Duffy Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 100 Anchorage, AK 99503 frtintuattac faciles a reeler • Repliez a la hachure afin de 1 www.avery.com w enn rA AVGDV 4 • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp ) Conservation Order No. 123A.003 Alaska, LLC. to drill and complete the ) Soldotna Creek Unit No. 43 -33 ) Swanson River Field development oil well within the same ) Soldotna Creek Unit governmental quarter section as wells ) Hemlock Oil Pool that are, or may be capable of ) producing from the same pool. ) November 29, 2012 IT APPEARING THAT: By letter received September 20, 2012, Hilcorp requests an order allowing drilling and completion of the proposed Soldotna Creek Unit No. 44 -33 (SCU 44 -33) development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. FINDINGS: 1. Hilcorp is the operator of the Swanson River Field, Soldotna Creek Unit and the proposed SCU 44 -33 development oil well, which are located on the east side of the Cook Inlet, Kenai Peninsula Borough, Alaska. The Pooling Agreement for the Swanson River Field encompasses the Soldotna Creek Unit and the adjacent Swanson River Unit. 2. Hilcorp will re -enter and re -use a portion of suspended well Swanson River Unit No. 24- 33 to drill to a potentially undrained portion of the Hemlock Oil Pool that lies within the adjacent Soldotna Creek Unit. This new wellbore will be named SCU 44 -33. 3. SCU 44 -33 will be an offshore, deviated development oil well with a surface location 876 feet from the north line and 2,127 feet from the west line of Section 4, T7N, R9W, Seward Meridian (S.M.). The projected top of the productive horizon is 34 feet from the north line and 2,062 feet from the east line of Section 4, T7N, R9W, S.M. The projected bottomhole location is 112 feet from the south line and 732 feet from the east line of Section 33, T8N, R9W, S.M. 4. SCU 44 -33 will be located entirely within Federal Leases A028997 and A028990. 5. SCU 44 -33 will be drilled to, and completed in, the Hemlock Oil Pool within an area governed by Conservation Order No. 123A (CO 123A). 'Pooling Agreement for the Swanson River Field, Alaska; U.S. Department of the Interior, Geological Survey, Memorandum to Chief, Branch Oil & Gas Operations dated December 28, 1964 CI 123A.003 • • November 29, 2012 Page 2 of 3 6. SCU 44 -33 will be located within the same governmental quarter section as wells that are, or may be capable of, producing from the Hemlock Oil Pool. 7. Rule 5 of CO 123A specifies that not more than two completed wells are allowed in any governmental quarter section. However, Rule 7 of CO 123A states: "Upon request of the Operator and a showing that all affected parties have been notified of such request, the Committee [ AOGCC] may authorize any operation reasonably designed to further the progress of the project and maximize the recovery of oil from the Hemlock Oil Pool in the Swanson River Field." 8. Hilcorp provided evidence that the spacing exception application and the Permit to Drill Application form (AOGCC Form 10 -401) were sent by certified mail to all affected working interest owners and landowners —i.e., Cook Inlet Region, Inc. and the U.S. Bureau of Land Management —on September 18, 2012. CONCLUSIONS: 1. An exception to the well spacing provisions of Rule 5 of CO 123A is necessary to allow drilling and completion of the SCU 44 -33 development oil well in order to maximize recovery of Hemlock Oil Pool reserves. 2. An exception to the well spacing provisions of Rule 5 of CO 123A to allow drilling and completion of the SCU 44 -33 development oil well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: Hilcorp's September 20, 2012 application for an order granting an exception to the well spacing requirements of Rule 5 of CO 123A to allow drilling, completion and regular production of the SCU 43A -33 development oil well is approved. Hilcorp may proceed as long as it complies with 1 the terms of the Pooling Agreement for the Swanson River Field, the Swanson River and Soldotna Creek Unit Agreements, applicable Alaska laws, and all other legal requirements. DONE at Anchorage, Alaska and dated November 29, 2012. P..20..C.4‘,,-- / ailt. Cathy Foerster 1 lel T. Seamount, Jr. Flo, K. 6rm'f Chair, Commissioner Commissioner Co ssioner ,,,,, . ;1 _,..+ ,,,,,,,,,_-,,,,, , ` • CI 123A.003 November 29, 2012 Page 3 of 3 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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 AOGCC 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 AOGCC 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 AOGCC mails, OR 30 days if the AOGCC 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 AOGCC 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 AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(6), "[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC 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. • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 29, 2012 4:03 PM To: 'Angela Singh'; Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); 'Brooks, Phoebe'; Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); 'Makana Bender; McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); 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); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Wallace, Chris (DOA sponsored)'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'CA Underwood'; Casey Sullivan; 'Dale Hoffman'; David Lenig; 'Donna Vukich'; Eric Lidji; Erik Opstad; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; 'Greg Mattson'; Heusser, Heather A (DNR); 'James Rodgers'; 'Jason Bergerson'; Jennifer Starck; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; Lois Epstein; Marc Kuck; 'Marie Steele'; 'Matt Gill'; Melissa Okoola; 'Ostrovsky, Larry Z (DNR)'; 'Patricia Bettis; Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Talib Syed; Terrace Dalton; 'Wayne Wooster; 'Wendy Wallf; 'William Hutto'; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; 'AKDCWeIIIntegrityCoordinator; 'alaska @petrocalc.com'; 'Alexander Bridge'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Bruce Webb'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David Duffy'; 'David House'; 'David Scott'; 'David Steingreaber'; 'Davide Simeone'; 'ddonkel @cfl.rr.com'; 'Dudley Platt'; 'Elowe, Kristin'; 'Francis S. Sommer; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmaii.com)'; 'Jeanne McPherren'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Lastufka'; 'Joe Nicks'; 'John Easton'; 'John Garing'; 'John Spain'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Julie Little'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Laura Silliphant (laura.gregersen @alaska.gov)'; 'Luke Keller; 'Marc Kovak; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; 'Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker @alaska.gov); 'Paul Mazzolini'; Randall Kanady; Randy L. Skillern; 'Randy Redmond'; 'Rena Delbridge'; 'Renan Yanish'; 'Robert Brelsford'; Robert Campbell; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; 'Stephanie Klemmer; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; 'Suzanne Gibson'; Tamera Sheffield; 'Taylor, Cammy 0 (DNR)'; Temple Davidson; Teresa Imm; Thor Cutler; 'Tim Mayers'; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Yereth Rosen Subject: co123A -003 SCU 43 -33 Spacing Exception Attachments: co123a 003.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (far) 1 a Easy Peel® Labels i .a ® Bend along line to 1 ® AVERY® 5960Tm I ® ® �� Feed Paper ° "' expose Pop -up Edger"' 1 i Use Avery Template 5160 d • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston St., Ste. 200 5333 Wertheimer, Ste. 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry od den Richard Neahring ry g NRG Associates Mark Wedman 408 8" S Oil Company President Halliburton Golden, P.O. Box 1655 6900 Arctic Blvd. Golden, CO 80401 -2433 Colorado Springs, CO 80901 Anchorage, AK 99502 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker Oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94 ct. Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Cir. Barrow, AK K 99723 P.O. Box Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669 -7714 &6 K—._ Cc, ( t1--- ,_N Etiquettes faciles a peter ' A Repliez a la hachure an de ; W W W.avery COm , ' Sens de me _. ... . ,_ _.... mn� . w�dg) ra 1 l_Rna- nn_avFPv Easy Peel® Labels M.. Bend along line to 0 AVERY® 5960TM Use Avery® Template 5160® Feed Paper expose Pop -up EdgeTM 1 • David W. Duffy Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 100 Anchorage, AK 99503 . (a__C - q ■ CAC Etiquettes faciles a peter ; • Repliez a la hachure afin del www.avery.com Utilisez le aa6arit AVFRY® 51 ti(1® Sens de .4_.414. I .41.4.A .._MC [ 1 Ann_nn - &VFW 45 • • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Monday, October 29, 2012 4:33 PM To: Norman, John K (DOA); Ballantine, Tab A (LAW) Subject: RE: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf John and Tab, Unfortunately, I'll be at a Prudhoe Bay Gas Sales workshop at BP tomorrow from 1 to 4 pm. Let me know if I can help further. Steve D. From: Norman, John K (DOA) Sent: Monday, October 29, 2012 4:15 PM To: Ballantine, Tab A (LAW) Cc: Davies, Stephen F (DOA) Subject: RE: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf Hal I'll call at 1:00 PM tomorrow AK time (4:00 PM San Antonio time). Steve will be on line with me (if he'is available). I have your cell number as: 351 -6758. John From: Ballantine, Tab A (LAW) Sent: Monday, October 29, 2012 4:06 PM To: Norman, John K (DOA) Cc: Davies, Stephen F (DOA) Subject: RE: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf The times that look best are 9:00 a.m. or 12:30 or 1:00 p.m. AK time. It's easy to stay warm when you're about 4 hours from the Mexican border. From: Norman, John K (DOA) Sent: Monday, October 29, 2012 4:02 PM To: Ballantine, Tab A (LAW) Cc: Davies, Stephen F (DOA) Subject: FW: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf Tab, This is probably less complicated than it first appears. Is there a time we can discuss tomorrow? A few minutes on the phone may allow us to wrap this up. Stay warm! John r • . • From: Ballantine, Tab A (LAW) Sent: Friday, October 26, 2012 1:11 PM To: Davies, Stephen F (DOA) Subject: RE: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf - Adobe Acrobat Professional This looks relatively simple and two things come to mind. The first is that the notification requirement appears to be a precursor to that which was ultimately required in the spacing regulations. The second is that I don't think we can ignore the requirements of our regulations. So my gut reaction is no, we can't ignore the spacing regulation. Feel free to bounce my analysis off John to see if he agrees, never hurts to have a second set of legal eyes look at it. From: Davies, Stephen F (DOA) Sent: Friday, October 26, 2012 11:58 AM To: Ballantine, Tab A (LAW) Cc: Colombie, Jody J (DOA) Subject: RE: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf - Adobe Acrobat Professional Oh, here's another one for the plane. From: Davies, Stephen F (DOA) Sent: Wednesday, October 10, 2012 3:38 PM To: Ballantine, Tab A (LAW) Cc: Colombie, Jody J (DOA) Subject: Spacing Exception Rule Modification Request Swanson River CO 123A (v2).pdf - Adobe Acrobat Professional Tab, Can we discuss this when you get back? Rule 7 of CO 123A says: "Upon request of the Operator and showing that all affected parties have been notified of such request, the Committee may authorize any operation reasonably designed to further the progress of the project and maximize recovery of oil from the Hemlock Oil Pool in the Swanson River Field." Can we eliminate the spacing requirements section of CO 123A through only an admin approval? Thanks, Steve D. 2 • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, September 20, 2012 3:31 PM To: 'David Duffy - (C)' Subject: RE: SCU 44 -33 David, Spacing exceptions are granted for wells and not for areas, so the AOGCC can't issue the advance exemption that you suggest. Regards, Steve Davies AOGCC From: David Duffy - (C) [mailto:dduffy(ahilcorp.com] Sent: Tuesday, September 18, 2012 10:54 AM To: Davies, Stephen F (DOA) Cc: Luke Keller; Kevin Tabler Subject: RE: SCU 44 -33 Steve, Please see the attached application for a well spacing exception for SCU 44 -33. A hardcopy will be mailed out today. Please note that we are asking for administrative approval under Rule 5 for the NE 1/4 of S7, T7, R13 W. Should you determine that no spacing exception is required for Section 33, we still ask that you consider advance Rule 5 exemption for the SE % of Section 33 — we'll run into the same situation when SCU 343 -33 is sidetracked. If you have any questions, please do not hesitate to contact either Luke Keller or myself. Regards, David Duffy, Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 Office: 907 777 -8300 Direct: 907 777 -8414 Fax: 907 777 -8580 Email: dduffy @hilcorp.com This email may contain confidential and /or privileged information and is intended for the recipient(s) only. In the event you receive this message in error, please notify me and delete the message. From: Davies, Stephen F (DOA) [ mailto :steve.daviesPalaska.gov] Sent: Friday, September 14, 2012 2:06 PM To: Luke Keller 1 • Cc: Kevin Eastham; Larry Greenstein; avid Duffy - (C); Kevin Eastham; Schwartz, Guy L (DOA) Subject: RE: SCU 44 -33 Luke, I'm still not certain whether or not a spacing exception is needed for SCU 44 -33. The spacing requirements of CO 123A (restated below) are based on the number of wells that are completed in the Hemlock Oil Pool in each governmental quarter section. Whether or not those completed wells actually produce or inject fluids is not relevant to the spacing requirements. So, excluding SCU 44 -33, how many wells are currently completed in the Hemlock Oil Pool in the NE 1 /4 of Section 4 and in the SE % of Section 33? Steve Davies AOGCC Rule 5 of CO 123A states: "Not more than two completed wells are allowed in any governmental quarter section. No well shall be completed less than 500' from the Swanson River Field- Working Interest Agreement Area exterior boundary line." Per 20 AAC 25.990 (14), "complete" means to equip and condition a well as an oil, gas, or service well so that it is capable of producing or injecting fluids; in the case of a well branch in a previously completed well, "complete" means to equip and condition a well branch so that it is capable of contributing to the well's production or injection of fluids; Per 20 AAC 25.990 (26), "fluid" means any material or substance that flows or moves, whether in a semi - solid, liquid, sludge, gaseous, or other form or state; From: Luke Keller f mailto:Ikeller(ahilcorp.com] Sent: Friday, September 14, 2012 10 :18 AM To: Davies, Stephen F (DOA); Kevin Eastham; Larry Greenstein; David Duffy - (C); Kevin Eastham Subject: SCU 44 -33 Steve, SCU 33 -33 is the only well producing out of the Hemlock Oil Pool in the SE % of Sec 33. It is a different fault block than SCU 44 -33. SCU 332 -04 is the only well producing out of the Hemlock Oil Pool in the NE Y4 of Sec 4. It is actually producing out of the G -zone which we understand to be a part of the Hemlock Oil Pool. With this being said, we should be okay to proceed without a spacing exception. Is this correct? Luke Keller Drilling Engineer Hilcorp Alaska, LLC 907 - 777 -8395 From: Davies, Stephen F (DOA) [ mailto:steve.davies©alaska.gov] Sent: Friday, September 14, 2012 8:06 AM To: Luke Keller Subject: SCU 44 -33 2 • • Luke, SCU 44 -33 will be completed in the Swanson River Field Hemlock Oil Pool, which is governed by Conservation Order No. 123A. Rule 5 of that order allows only two wells to be completed in the Hemlock Oil Pool within each governmental quarter section. Excluding SCU 44 -33, how many wells are currently capable of producing from, or injecting into, the Hemlock Oil Pool in the NE 1/4 of Section 4 and in the SE 1/4 of Section 33? Thanks, Steve Davies AOGCC 907 - 793 -1224 3 44 • Post Office Box 244027 Anchorage, AK 99524 -4027 Hilcorp Alaska, LLC 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone: 907 /777 -8300 September 24, 2012 Fax: 907/777-8301 Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 SEP 2 5 2012 RE: Soldotna Creek Unit Spacing Exception Notice: SCU 43 -A -33 AOGCC Dear Commissioner Foerster, Hilcorp Alaska, LLC ( "Hilcorp "), as Operator of the Soldotna Creek Unit ( "SCU "), hereby provides notice of the proposed SCU 43A -33 development oil well project. This well will be sidetracked out of the currently plugged and abandoned SCU 313 -33 wellbore. The location of the well and relationship to adjoining properties and wells is depicted on attached Exhibit A, and is further summarized below: Surface Location: (same as SCU- 343 -33) • Federal Lease A028990 • 1,245' FSL, 625' FEL, Section 33, Township 8 North, Range 9 West, Seward Meridian, Alaska. Top of Producing Interval: • Federal Lease A028990 • 1,984' FSL, 682' FEL, Section 33, Township 8 North, Range 9 West, Seward Meridian, Alaska. Projected Bottom Hole Location: • Federal Lease A028990 • 2,188' FSL, 649' FEL, Section 33, Township 8 North, Range 9 West, Seward Meridian, Alaska. If successful, SCU 43A -33 will be drilled to an approximate total depth 1,1159' MD / 11,023' TVD and will restore production from the plugged and abandoned parent wellbore (SCU 343- 33). Based on seismic and subsurface data available to Hilcorp, this sidetrack operation is necessary to maximize the recovery of oil from the Hemlock Oil Pool. In particular, this project seeks to produce stranded oil reserves that are not otherwise recoverable due to the lack of takepoints or mechanical condition of existing wellbores within the fault block. Rule 5 of Conservation Order 123A limits the number of oil wells in any given governmental quarter section to two (2) wells. Currently, there is only one well (SCU 33 -33) producing oil from the Hemlock pool within the south east quarter section of S33, T8N, R9W. However, a spacing exemption will be required following the completion of pending sidetrack drill project SCU 44 -33. See spacing exception application dated September 18, 2012. To the extent such a 1 Order dated August 23, 1973, as amended December 5, 1995. • Swanson River Field (Soldotna Creek Unit) SCU 43A -33 Spacing Exception Application September 24, 2012 Page 2 of 3 spacing exception is required, Hilcorp requests administrative approval pursuant to Rule 7 of Conservation Order No. 123A. The Soldotna Creek Unit is subject to working interest agreements that cover and protect the entire Swanson River Field. Such agreements also protect the correlative rights of all affected working interest owners and landowners (i.e., Cook Inlet Region, Inc. and the Bureau of Land Management). Hilcorp's role as Operator of both the Swanson River and Soldonta Creek units furthers the efficiency of resource production from Hemlock Oil Pool. At the date of this mailing, a copy of this application (and accompanying Permit to Drill) was sent by certified mail to all affected working interest owners and landowners. Also enclosed is an affidavit stating the undersigned is acquainted with the fact and verifying that all facts asserted herein are true. The earliest anticipated spud date is October 22, 2012, and will immediately follow the completion of pending sidetrack drill project SCU 44 -33. Therefore, your expedited consideration is requested. If you require additional information regarding this request, please contact Mr. Luke Keller, Drilling Engineer, at 777 -8395, or you may contact the undersigned at 777 -8414. Sincerel David W. Duffy � ✓r � �� Hilcorp Alaska, LLC Enclosures: Exhibit A; Copy of Permit to Drill; Certified mailing receipts CC: BLM CIRI 2 Rule 7 (Administrative Approval) provides that "[u]pon request of the Operator and showing that all affected parties have been notified of such request, the Committee may authorize any operation reasonably designed to further the progress of the project and maximize the recovery of oil from the Hemlock Oil Pool in the Swanson River Field. 3 In 1964, both the Swanson River and Soldotna Creek Units were consolidated into a single operating area, known as the Swanson River Field. This joined the two federal units together and established a mechanism to allocate production. See Conservation Order 123, Rule 2 (1973). • • Swanson River Field (Soldotna Creek Unit) SCU 43A -33 Spacing Exception Application September 24, 2012 Page 3 of 3 VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA SOLDOTNA CREEK UNIT SCU 43A -33 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with the application submitted for the drilling of the SCU 43A -33 well in the Soldonta Creek Unit, Swanson River Field. I have reviewed the application submitted for the exception to 20 AAC 20.0559(a) and applicable Conservation Rules, and assert that all the facts therein are true. I have reviewed the plat attached to said application and it correctly portrays the pertinent and required data. DATED at Anchorage, Alaska this 24 day of September, 2012. 412' II D id W. Duffy, Landm Hilcorp Alaska, LLC STATE OF ALAKSA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 18 day of September, 2012 t STATE OF ALASKA. NOTARY PUBLIC �. NOTARY PUBLIC IN AND FOR Zelma M. Clarke THE STATE OF ALSKA r My Commission expires: 1 ' / My Commission Expires Nov 10, 2012 M1 I • / , , _.. , _ , 1 ___,_---- , , , , , __ ,...... _______ A028406 Text A028399 ♦ SRU 32A -33 BHL Swanson River Unit i S008N009W - , ` lin I SCU 43A -33 BHI • t Soldotna Creek Unit I • U 343 -33 BH I SCU 43A -33 ‘ SCU 13 -34 BHL TOP of Production Horizon I ,' • / ,. � � A028990 ; ,f• 4 SCU 33 -33 BHL SCU 43A -33 SHL BHL ■ SRU 24 -33 BHL S .- 0 / O000 oo00 0 o ua0 n 0000 00OOm ar SCU 44 -33 Wellpath (sidetrack SRU 24 -33) SCU 21 -04 BHL SCU 21A -04 BHL • di 1 Legend ,1 • SCU 43A -33 Surface Location ' , !SOU 42 -04 BHL a • X SCU 43A -33 Top of productive horizon / / • SCU 43A -33 Bottom Hole Location ' SCU 12A -03 3HL 4, U 12 -03 BHL • SCU 43A -33 Well Track i SCU 43A -33 1000 foot radius 32-04 BHL • SCU 44 -33 Wellpath t, • , , i -• II 0 1,000 2,000 Exhibit A Feet SCU 43A -33 N Alaska State Plane Zone 4, NAD27 Hilcorp Alaska, LLC September 21, 2012 4 • Hilcorp Paul Mazzolini Hilcorp Alaska, LLC Drilling Manager P.O. Box 244027 Anchorage, AK 99524 -4027 Tel 907 777 8369 9/21/2012 Email pmazzolini @hilcorp.com Commissioner Alaska Oil & Gas Conservation Commission 333 W. 7 Avenue Anchorage, Alaska 99501 Re: Soldotna Creek Unit 43A -33 Dear Commissioner, Enclosed for review and approval is the application for the Permit to Drill the Soldotna Creek Unit 43A- 33. SCU 43A -33 is a development oil well planned to be re- drilled in a NNE direction from the parent welibore SCU 343 -33 utilizing the existing casing program down to 10,350' MD / 10,262' TVD. SCU 343 -33 will be permanently plugged and abandoned to a depth of 10,400' MD / 10,312' TVD. The original perforations were in the Hemlock formation from 10,562' to 10,968' MD. At 10,350' MD / 10,262' TVD, the parent welibore will be sidetracked and a 5 -5/8" x 809' open hole section drilled to a total depth of 11,159' MD / 11,023' TVD. SCU 43A -33 is a twinning wellbore to the original, SCU 343 -33 well. Maximum inclination will be 21 deg. Drilling operations are expected to commence approximately Oct 22nd, 2012 depending on the progress of other ongoing projects. Prior to the commencement of drilling operations, the Williams Pulling Unit will be mobilized and conduct welibore preparation operations for the sidetrack operation. A 10 -403 will be submitted for this operation which inciudes: 1. Removing the existing production tree. 2. Pulling the existing 2 -7/8" tubing. 3. Permanently plugging and abandoning perforated intervals to 10,400' MD. 4. Conduct mechanical integrity tests of cmt plug and cmt retainer. 5. Conduct a gyro survey on electric line. 6. Set a CIBP @ 10,371' to use as an anchor for the Whipstock. A spacing exception is required for this well. Pursuant to 20 AAC 25.005 (c) & (d), the following is included: 1. Plat identifying the property on which the well will be drilled. 2. Diagram & description of blowout prevention equipment. 3. Information on drilling hazards. a. The Hemlock is potentially hydrocarbon bearing throughout the section. MASP calculations are attached per 20 AAC 25.005 (c)(4)(A) b. Potential target reservoirs and their predicted pore pressures are indicated in attached Well Design Summary. Hilcorp Alaska, LLC Page 1 of 2 • 4. Formation integrity test procedure. 5. Planned casing & cement program (Well Design Summary) 6. Diverter system will not be used. An 11" 5M BOP (3 ram & annular) will be used while drilling and completing the well. A BOP schematic is attached. 7. Drilling fluid program 8. Tabulation of predicted depths with equivalent formation pressures. 9. Requirements of 20 AAC 25.025 have been met. a. Blanket bond issued for Swanson River, bond no. 22035263 10. Copy of drilling design summary. 11. General description of waste disposal. Operator does not wish to request authorization under 20 AAC 25.080 for an annular disposal operation in the well. a. Drilling waste (cuttings and water based drilling fluids) will be contained at the drill site and hauled off to Emerald Services, Inc for inerting and subsequent disposal. 12. Requirements of 20 AAC 25.050(b) have been met. a. Plat showing path of proposed wellbore including all adjacent wellbores within 200' is attached. b. All wellbores within 200' of proposed wellbore are owned by Hilcorp. If you have any questions, please don't hesitate to contact myself at 777 -8369 or Luke Keller at 777- 8395. Sincerely, ?a& Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 2 of 2 RECEIVED STATE OF ALASKA SEP 2 5 2011 AKA OIL AND GAS CONSERVATION COMMIS •N PERMIT TO DRILL AOGCC 20 AAC 25.005 1a. Type of Work: 1 b. Proposed Well Class: Development - Oil i0 Service - Winj ❑ Single Zone ❑ lc. Specify if well is proposed for: Drill ❑ Redrill Q Stratigraphic Test ❑ Development - Gas ❑ Service - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory ❑ Service - WAG El Service - Disp ❑ Shale Gas 2. Operator Name: 5. Bond: Blanket 0 Single Well ❑ 11. Well Name and Number. Hilcorp Alaska, LLC Bond No. 22035263 SCU 43A -33 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3800 Centerpoint Dr, Anchorage, AK, 99524 MD: 11,159 TvD: 11,023 Hemlock Oil Pool 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 1245' FSL, 625' FEL, Sec 33, T8N, R9W, S A028890 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 1984' FSL, 682' FEL, Sec 33, T8N, R9W, S N/A 10/22/2012 Total Depth: 9. Acres in Property: 14. Distance to Nearest Property: 2188' FSL, 649' FEL, Sec 33, T8N, R9W, S 400 acres 649 ft 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 142.6 feet 15. Distance to Nearest Well Open Surface: x- 347019 y- 2462415.3 Zone- 4 GL Elevation above MSL: 124 feet to Same Pool: 1103' (SCU 33 -33) 16. Deviated wells: Kickoff depth: 10,350 feet 17. Maximum Anticipated Pressures in psig (see 20 AAC 25.035) Maximum Hole Angle: 21 degrees Downhole: 2999 psig Surface: 1917 psig 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Conn Length MD TVD MD TVD (including stage data) 5 -5/8" 4" 9.5 L -80 STL 1009 10150 10072 11,159 11,023 136.5 ft3 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redn11 and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): 10,995' 10,880' 10,692' 10,586' 10,586' Casing Length Size Cement Volume MD TVD Conductor /Structural Surface 1496 13 -3/8" 1496 1496 Intemiediate _ Production 10995 6 -5/8" 10635 10200 Liner Perforation Depth MD (ft): 10,562' - 10,968' Perforation Depth TVD (ft): 10,461' - 10,845' 20. Attachments: Property Plat 0 BOP Sketch ID Drilling Program 0 Time v. Depth Plot IO Shallow Hazard Analysis ❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program la 20 AAC 25.050 requirements 0 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name ?Pi U , , 1 „ P 4 P I Z Z C I Ll /LJ ( The a4..ILL..1MG M MN /4 c.R- Signature 24 � ' l'/ Phone ¢0 - 777- 834,9 Date a 4 /24/1 z. ( Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number. 50- Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: ❑ Other: Samples req'd: Yes ❑ No ❑ Mud log req'd: Yes ❑ No ❑ H measures: Yes ❑ No ❑ Directional svy req'd: Yes ❑ No ❑ • APPROVED BY THE COMMISSION DATE: , COMMISSIONER Form 10 (Revised 7/2009) This permit is valid for 24 months from the date of approval (20 AAC 25.005(g)) Submit in Duplicate • • US. Postal Service CERTIFIED MAIL RECEIPT (Dortifystic Mail Only; No Insurance Coverage Provide) m rr ' - I c13 2 Total Postage & Fees $ • rn r, Wayne M. Svejnoha, Branch Chief Energy and Minerals `Ifej- A ' Bureau of Land Management (rty ',tt r`- 222 West Seventh Avenue, #13 PSom Anchorage, AK 99513-7504 u U.S. Postal Service CERTIFIED MAIL RECEIPT (Domestic Mail Only; No insurance Coverage p rr - — P,st3cie " ( cal 1-1-1 FP. 1, l it/5 - ---------- CI ' • C3 • gilt Total Postacle & Fees ru rn _ Ethan Schutt, Senior Vice President Land Energy Cook Inlet Region, Inc. C3 1 2525 C Street, Suite 500 r" I - • Anchorage, AK 99503 P • ru' s r �3 • • • Post Office Box 244027 LLC (('�� Anchorage, AK 99524 -4027 L Hilcorp Alaska, LC 3800 100 terpoint Drive Anchorage, AK 99503 Phone: 907/777 -8300 September 18, 2012 Fax: 907/777-8301 Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 S E P 2 0 2012 AOGCC RE: Soldotna Creek Unit Spacing Exception Notice: SCU 44 -33 Dear Commissioner Foerster, Hilcorp Alaska, LLC ( "Hilcorp "), as Operator of the Soldotna Creek Unit ( "SCU "), hereby provides notice of the proposed SCU 44 -33 development oil well project. This well will be sidetracked out of the currently plugged and abandoned SRU 24 -33 wellbore. The location of the well and relationship to adjoining properties and wells is depicted on attached Exhibit A, and is further summarized below: Surface Location: (same as SRU 24 -33) • Federal Lease A028997 • 876' FNL, 2, 127' FWL, Section 4, Township 7 North, Range 9 West, Seward Meridian, Alaska. Top of Producing Interval: • Federal Lease A028997 • 34'FNL, 2,062' FEL, Section 4, Township 7 North, Range 9 West, Seward Meridian, Alaska. Projected Bottom Hole Location: • Federal Lease A028990 • 112' FSL, 732' FEL, Section 33, Township 8 North, Range 9 West, Seward Meridian, Alaska. -33 If successful, SCU 44 -33 will be drilled to an approximate total depth 12,328' MD / 10,723 . 2 i TVD and will restore production from the plugged and abandoned parent wellbore (SRU � j �r " 33). Based on seismic and subsurface data available to Hilcorp, this sidetrack operation is Su 5 I necessary to maximize the recovery of oil from the Hemlock Oil Pool. r OJ A cI Rule 5 of Conservation Order 123A limits the number of oil wells in any given governmental 1 2, quarter section to two (2) wells. In this instance, a spacing exemption may be required because a q portion of SCU 44 -33's wellbore falls within the NE 1 /4 section of S4, T8N, R9W, which in turn contains two producing wells (SCU 332 -04 and SCU 42 -04), both of which currently produce oil from the Hemlock zone. See Exhibit A. To the extent such a spacing exception is required, Hilcorp requests administrative approval pursuant to Rule 7 of Conservation Order No. 123A. ' Order dated August 23, 1973, as amended December 5, 1995. 2 Rule 7 (Administrative Approval) provides that "[u]pon request of the Operator and showing that all affected parties have been notified of such request, the Committee may authorize any operation reasonably • • Soldotna Creek Unit SCU 44- 33Spacing Exception Application September 18, 2012 Page 2 of 3 Although not technically required, Hilcorp proactively seeks administrative relief from Rule 5 in the NE 'A of Section 33, T8N, R9W. In that quarter section, only one well (SCU 33 -33) currently produces oil from the Hemlock zone. However, Hilcorp has tentative plans to abandon SCU 343 -33, and then perform a similar sidetrack operation from the parent wellbore. To minimize administrative delay, Hilcorp requests administrative approval to complete oil up to three wells in the SE 1/4 of Section 33, T8N, R9W. Both the Swanson River and Soldotna Creek Units are subject to working interest agreements that cover and protect the entire Swanson River Oil Field. Such agreements also protect the correlative rights of all affected working interest owners and landowners (i. e., Cook Inlet Region, Inc. and the Bureau of Land Management). Hilcorp's role as Operator of both Units furthers the efficiency of resource production from Hemlock Oil Pool. At the date of this mailing, a copy of this application (and accompanying Permit to Drill) was sent by certified mail to all affected working interest owners and landowners. Also enclosed is an affidavit stating the undersigned is acquainted with the fact and verifying that all facts asserted herein are true. The earliest anticipated spud date is September 20, 2012. Therefore, your expedited consideration is requested. If you require additional information regarding this request, please contact Mr. Luke Keller, Drilling Engineer, at 777 -8395, or you may contact the undersigned at 777 -8414. Sincerely, David W. Duffy Hilcorp Alaska, LLC Enclosures: Exhibit A; Copy of Permit to Drill (dated 9/10/2012); Certified mailing receipts CC: BLM CIRI VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA designed to further the progress of the project and maximize the recovery of oil from the Hemlock Oil Pool in the Swanson River Field. • • Soldotna Creek Unit SCU 44- 33Spacing Exception Application ' September 18, 2012 Page 3 of 3 VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA SOLDOTNA CREEK UNIT SCU 44 -33 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with the application submitted for the drilling of the SCU 44 -33 well in the Soldonta Creek Unit, Swanson River Oil Field. � I have reviewed the application submitted for the exception to 20 AAC 20.055 a) and a applicable Conservation Rules, and assert that all the facts therein are true. I have reviewed the plat attached to said application and it correctly portrays the pertinent and required data. DATED at Anchorage, Alaska this 18 day of September, 2012. David W. Duffy, Landman Hilcorp Alaska, LLC STATE OF ALAKSA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 18 day of September, 2012 STATE OF ALASKA , "fr- 0 NOTARY PUBLIC Nri ARY PUBLIC IN AND FOR Zelma M. Clarke '''Xii TAI STATE OF ALSKA My Commission expires: ////0 /P-O /. My Commission Erphe Nov 10, 2012 l • • • A028406 1 , SCU 343 -33 BHL I SCU 13 -34 BHL • A02839�9 . S008N009W go I -33 BHL A028990 ' i , ,''' `SCU 33 -33 BHL '', / 1 / ` / • • • SRU 14 -33 BHL • ,' , , . S SRU 24 -33 BHL .0'. / , --*/ - SCU 44 -33 BHL / _ • ' °°° SCU 44 -33 Top ✓ 1 of Production Horizon l SCU 21 -04 BHL V SCU 21A -04 BHL • I ■ / SCU 44 -33 SHL i' 1 ,I i I \ ` / 4 SCU 42 -04 BHL I ■ ■ SCU 12 -04 BHL // SCU 12 -03 BHL SCU 12A -03 I3HL 7 SCU 12A -04 BHL / S007N009W S CU 22 -04PB BHL • SCU 332 -04 BHL 4 A028997 SCU 22-04 BHL / • 1, a • /, , r I, 1, 1, // 3-04 BHL r SCU 43 -04 BHL ' Legend SC 13 03 BHI,.. 4 SCU 43A -04 BHL r Surface Hole Location SCU 44 -33 Top of Production Horizon • Bottom Hole Location SCU 44 -0 BHL • SCU 44 -33 Wellpath ',. 1000 ft radius -- •T I 1 II 0 1,000 2,000 EXHIBIT A Feet SCU 44 -33 N Alaska State Plane Zone 4, NAD27 Hilcorp Alaska, LLC September 18, 2012 1 4,r , 1,1 V GLJ • a • .. SEP 20 2012 ALASKA OIL AND GAS ON'cRVATION COMMISSION PERM DRILL AOGCC 20 r 5.005 1 a. Type of Work: lb. Proposed Well Class: Development - 011 el Winj ❑ Single Zone ❑ lc. Specify if well is proposed for. Drill ❑ Redd! IS Stratigraphic Test ❑ Development - Gas ❑ ),- t - Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re -entry ❑ Exploratory ❑ Service - WAG ❑ - Disp ❑ _ Shale Gas El 2. Operator Name: 5. Bond: Blanket El Single Well El 11. Well Name and Number: Hilcorp Alaska, LLC Bond No. 22035257 ,..saLL.- U 44 - 33 3. Address: 6. Proposed Depth: 12. Field /Pool(s): 3800 Centerpoint Dr, Anchorage, AK, 99524 MD: 12,328 TVD: 10,723 Hemlock Oil Pool 4a. Location of Well (Governmental Section): 7. Property Designation (Lease Number): Surface: 876' FNL, 2127' FWL, Sec 4, T7N, R9W, S FED A028399 & FED A028997 Top of Productive Horizon: 8. Land Use Permit: 13. Approximate Spud Date: 34' FNL, 2062' FEL, Sec 4, T7N, R9W, S N/A 9120/2012 Total Depth: 9. Acres in Property: 14. Distance to Nearest Property: 112' FSL, 732' FEL, Sec 33, T8N, R9W, S 4320 acres total (both properties) 34' From North Line 4b. Location of Well (State Base Plane Coordinates - NAD 27): 10. KB Elevation above MSL: 183.2 feet 15. Distance to Nearest Well Open Surface: x- 344467 y- 2460328 Zone- 4 GL Elevation above MSL: 164.6 feet to Same Pool: 731' (SCU 34 - 33) 16. Deviated wells: Kickoff depth: 9,500 feet 17. Maximum Anticipated Pressures in psig (see 20 MC 25.035) Maximum Hole Angle: 70 degrees Downhole: 3496 psig Surface: 2423 psig 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade Conn Length MD TVD MD TVD (including stage data) 6" 4 -1/2" 12.6 L -80 Hydril.521 3028' 9300 9200 12,328 10,723 385 ft3 at 15.3 ppg 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor /Structural Surface 3408 10 -3/4" 1500 sx 3408 3408 Intermediate Production 10635 7 -5/8" 1000 sx 10635 10200 Liner Perforation Depth MD (ft): P&A'd Perforation Depth TVD (ft): P&A'd 20. Attachments: Property Plat ig BOP Sketch Q Drilling Program 19 Time v. Depth Plot Q Shallow Hazard Analysis ❑ Diverter Sketch ❑ Seabed Report ❑ Drilling Fluid Program 0 20 MC 25.050 requirements 19 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Contact Printed Name 7l(M_ � Z Al 1 Title 1 AI y,1„ f Ill G / ak. Signature O 1 Phone 907 -777- 536,c? Date °cf / / i Commission Use Only Permit to Drill API Number: Permit Approval See cover letter for other Number: 50- Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed methane, gas hydrates, or gas contained in shales: ❑ Other: Samples req'd: Yes ❑ No ❑ Mud log req'd: Yes ❑ No ❑ H measures: Yes ❑ No0 Directional svy req'd: Yes ❑ No ❑ APPROVED BY THE COMMISSION DATE: , COMMISSIONER Form 10 - 401 (Revised 7/2009) This permit Is valid for 24 months from the date of approval (20 AAC 25.005(9)) Submit In Duplicate ,. ' SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY • Complete items 1, 2, and 3. Also complete A. Signature item 4 if Restricted Delivery is desired. ❑ Agent • Print your name and address on the reverse X O Addressee so that we can return the card to you. B. Received by ( Printed Name) C. Date of Delivery ' • Attach this card to the back of the mailpiece, i or on the front if space permits. 1. Article Addressed to: D. is delivery address different from item 1? O Yes If YES, enter delivery address below: 0 No Mr. Ethan Schutt ' Cook Inlet Region Inc. 2525 C Street, Suite 500 Anchorage, Alaska 99509 -3330 3. Service Type I )(Certified Mail 0 Express Mail O Registered ❑ Return Receipt for Merchandise ❑ Insured Mail 0 G.O.D. 4. Restricted Delivery? (Extra Fee) 0 Yes 1 2. Article Number ' (Transfer from service label) • ■ PS Form 381 August 2001 Domestic Return Receipt 102595 -01 -M -25091 i SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY ■ Complete items 1, 2, and 3. Also complete A. Signature ■ item 4 if Restricted Delivery Is desired. 0 Agent , • Print your name and address on the reverse X 0 Addressee so that we can return the card to you. B. Received by (Printed Name) C. Date of Delivery • Attach this card to the back of the mailpiece, or on the front if space permits. i D. Is delivery address different from item 1? 0 Yes 1 1. Article Addressed to: If YES, enter delivery address below: 0 No I Wayne M Svejnoha, Branch Chief Energy and Minerals Bureau of Land Management 3. Service Type i 222 West Seventh Avenue, #13 I gCertified Mail ❑ Express Ma Anchorage, AK 99513 -7504 Registered ❑ Return Receipt for Merchandise • 0 Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) 0 Yes 1 2. Article Number 1 (Transfer from service label) PS Form 3811, August 2001 Domestic Return Receipt 102595 -01 -M -2509 I . Unocal Alaska Resources Unocal Corporation 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 uNOCA~76 May 18, 2000 Commissioner Robert N. Christenson Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Soldotna Creek Unit #23A-9 ADMINISTRATIVE APPLICATION FOR VARIANCE: RULE 5, CONSERVATION ORDER 123-A Dear Chairman Christenson: Enclosed and submitted in triplicate is our application for Permit to Drill Soldotna Creek Unit A-28997 We1123A-9 (form 10-401) pursuant to 20 AAC 25.005 and our check No. 2003591 in the amount of $100.00 as required under 20 AAC 25.005 (c) (1). Verification of Application by the undersigned stating that applicant is acquainted with the facts, pursuant to 20 AAC 25.055 (d)(3), is attached as part of this application. It is requested that the Commission approve an administrative variance to Rule 5, Conservation Order 123-A for the drilling of well SRU #23A-9, A-28997, as the addition of #23A-9 will cause more than two completed wells to be within the northwest governmental quarter-section of Section 9, T7N, R9W, SM. Soldotna Creek Unit We1123A-9: The specific location, interval, and depth are as follows: Surface Location: 2520' FSL and 1970' FWL Sec. 9, T7N, R9W, SM Top of Productive interval: 2630' FSL and 1525' FWL Sec. 9, T7N, R9W, SM Total Depth and Location: 2495' FNL and 946' FWL Sec. 9, T7N, R9W, SM The lease is currently beyond its primary term and is being held by the Soldotna Creek Unit. t ~ tr ~~ ~v 2 3 2ooa ~lC ~ ~ f~ arts. Coc~~i~ia~ ,~~ All applicable provisions of 20 AAC 25.050 (Deviation) have been met for each owner and all operators of governmental sections directly or diagonally offsetting the section where the gas wells are located. Unocal is the owner and operator of all directly or diagonally offsetting sections; therefore, notices by registered mail pursuant to 20 AAC 25.055 (d) are not necessary. If you require additional information, please contact Shannon Martin at 907-263-7882, or Tim Billingsley, Drilling Department at 907-263-7659. Sincerely, Sh on W. Martin Enclosures 4~~~~~ ~,~ ~ ;~ 2 3 2000 Arta ~i! ~ has Cat3. Com~i~siQn Ar~hora~e • • VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA Lease # 28997 Well: Soldotna Creek Unit #23A-9 I, SHANNON W. MARTIN, Legal Analyst, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Soldotna Creek Unit #23A-9 Well. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) (statewide spacing) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this 15th day of 2000. annon .Martin Legal Analyst STATE OF ALASKA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 15th day of May 2000. NOTARY PUBLIC IN AND FOR THE STATE OF ALASKA My Commission expires: ~~ 4~Y D~ C14~..~~i,.C~ s ,x "'° _,~ ~ , ~.~~Y i 5 200' ~~~~ qtr. *-I • Unocal Alaska Resources Unocal Corporation 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 uNOCa~~ May 15, 2000 Commissioner Robert N. Christenson Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Soldotna Creek Unit #23A-9 REQUEST FOR SPACING EXCEPTION A- 28997 .M;. F'.~.~ ~~' 15 200 Dear Chairman Christenson: ~~l <`.a r , , _ . . ~ s _. ,., ?:`a ~:~s ~ F'~~ r Enclosed and submitted in triplicate is our application for Permit to Drill Soldotna Creek Unit A-28997 Well 23A-9 (form 10-401) pursuant to 20 AAC 25.005 and our check No. 2003591 in the amount of $100.00 as required under 20 AAC 25.005 (c) (1). Verification of Application by the undersigned stating that applicant is acquainted with the facts, pursuant to 20 AAC 25.055 (d)(3), is attached as part of this application. It is requested that the Commission approve an exception to the statewide spacing regulation 20 AAC 25.055 (a)(4) for the drilling of well SRU #23A-9, A-28997. Soldotna Creek Unit We1123A-9: The specific location, interval, and depth are as follows: Surface Location: 2520' FSL and 1970' FWL Sec. 9, T7N, R9W, SM 9 ~~ Top of Productive interval: 2630' FSL and 1525' FWL Sec.~T7N, R9W, SM Total Depth and Location: 2495' FNL and 946' FWL Sec. 9, T7N, R9W, SM The lease is currently beyond its primary term and is being held by the Soldotna Creek Unit. All applicable provisions of 20 AAC 25.050 (Deviation) have been met for each owner and all operators of governmental sections directly or diagonally offsetting the section where the gas wells are located. Unocal is the owner and operator of all directly or .~' ~~~ ~. ~~ ~~ _ ~ ~ diagonally offsetting sections; therefore, notices by registered mail pursuant to 20 AAC 25.055 (d) are not necessary. If you require additional information, please contact Shannon Martin at 907-263-7882, or Tim Billingsley, Drilling Department at 907-263-7659. Sincerely, Shannon W. Martin Enclosures t.~ ~~ y~ -~ ~ 20~ ,, . . ,,~ ~~~ ~Y ~". ..4.. y I . ---~ - ----.---~---1----- ~ --..-_._-.~._. ~ ~ _ ~ I A-28396 I ~ A 28399 u ~'"~' ( ~~` ~ _ _ ~ , ~,~ A-28406 ~ ( UOE ~ UOC~.,,~ I % ~ UOC 1 . ~' _ ~ ~ ! I I ~ "'~ I A 28990 I ---; I ~ ~" I'~x uoC ~ ' I trst zr~ I ~~jt ' x~n i ~ ~ I ~ na I A-28396 ~ A-28996 ~ ~~ -~ ~ ~l~ A-28997 1 I . , A-28997 ~ ' ! I . ~ ~ ~ UOC w i I ~.. ~ - - - ~ - ~__: - - - i _I +~a I A-28996- 2~s~ A-28997 ~ ,~„ ~ _ A,~ Z~997 - - - ~ UOC '~~' ~ UOC . ~ ~ UOC I i ~ ~~ ~~~. ~- ~-~ .ri 9 ~ i 10 i 8 ~ ~~... ~~., I ~ . I . `~ --1- --~- ----~~.- ~ L--__.~ IA-Zpgpd~i-u ~ 'n,..~. SOLDOTNA ~ uoc. ~ ~ ~ ~ "'" CREEK ~ _ _ _I .¢. r - - - ~ uNOC~u.m UNIT - ~--• ~~-Z89~3 a A~ - 58 i a ~ ~ I ~ Soldotna Creek Unit I uo~ UoC. ~ 1',,~ ~ ~3~-9 PROPERTY o i.aoo zoco 1.000 ~ ~ PLAT I I, I SCALE IN FEET i , r I ~-~ '--~ I ~ ~' ' ~ BO' 46'N y ~ ~ T.s. ~ ~ 1-27 ~ ---~~ ~ ax- .,-.. I n- I tom.. I . _ „_„ ~ ~ ~ ~ :.0000 n.-n n=-~ ~~, ~ I ~ I~ • wAR~avsE ` "'; ~ it STORAGE PkS • I ' ' ~ ~G I EQUIPID:N 1 ) ! .•` - x-se ~ \ ~/ y 1'R \ JJ I ~~ a~ GRAVEL P~ ~~' I' I BO' 45'N T.33 --- ,~'\ ~ ~ ~ -~ / r I I i ` -' F ~ I u-aa ! - f-, n-m ~ su-x CANOE ~ LAUNCH z•.sooo a-as is-x ` /~ LOCKED ~ GATE ~-a - tu_y~ - m-b ~w->, Mx SWAN LAKE ROAD .'\ ' ~ Lake L-+ ' x- COIL°OR n-a OFFICE P - ~~ AND -T_~ ~ ~ :•.oaoo SHOP ' - w-a aaa-s ~t NAD7 ., tzi, FLARE •- a-a /~+.. C ~ \ _ ~ W-6 7A-a aaA-a t2l-6 (,~ w-s T S \ ~ ~ ` '` ~. ., . . d ~-° ~ ta~eu ~ ~ xa-~ •,. L': ~ ~,~ GRAVEL `~~ LI-a ~. x-s ~ , ~~,-• ~ ha ~' r ' ' ~ \ PR ' K-~ '. %~ \\; WASTE DIS k OSAL 1- - ~ ' Ra~n.ou ~ l ~ '~ .t,-. srrE ,~ T.S. ' - cake ` , t _. 1 uA-o ~ ' ..\ i * n-s aa-e `c+• ~ - I/ i ~ ~_o w-~ ata-. ~ ~ a-. w-. \ f_ ~ i' MAIN ~ aa-. ; ,.t ta_. T x-ti S ~ GATE \ ' . . ~-~ ~3-9 au-t. , w . \ u-u • ~ \ \ / ~i \ ta-u r. ~ . I ~ i UNOCALm 6 ~ Hsu .noi.Kts tn.uo/r~.ow. o.o.n~..t KENAI PENINSULA ~ SWANSON RIVER FIELD OIL SPILL ~ ,._~