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Home My WebLink AboutO 019Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Q ~ Order File Identifier Organizing (done) RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals ^ Other: ~~.wo„~~ iuuiiiioiuiuii DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: ., Ae,~a~~eeaea iiiimiiiiuiiu OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES: BY: / Maria Project Proofing BY: Maria Scanning Pre~parat~ion BY: M/ aria Date: Date: _x30= Date: ~/, + =TOTAL PAGES_ L~3 (Count does not include cover sheet),^ ,~ !s! ~l v I Production Scanning Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: _~~ ES _ BY: Maria Date: Jr' ~ g f Sfage 1 If NO in stage 1, page(s) discrepancies were found: YES BY: Maria Date: Scanning is complete at this point unless rescanning is required. ~P „iuummiNUlu ~P mp "'uumuiuiiuii ReScanned III IIIIII IIIII IIIII BY: Maria Date: ,'s/ Comments about this file: Quality Checked III II~IIIIIIII'llll ^ Other:: 10!6!2005 Orders File Cover Page.doc • U INDEX OTHER ORDER NO. 19 Falls Creek Field Plan 1. February 13, 2003 2. February 14, 2003 3. February 24, 2003 4. March 13, 2003 5. March 13, 2003 6. March 13, 2003 Marathon's Falls Creek Field Plan Notice of hearing, Affidavit of publication ADN, bulk mailing list Fax to Paul Craig re: Falls Creek Application ConocoPhillips comments Hearing sign in sheet Hearing Transcript Other Order 19 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Mazathon Oil ) Other Order No. 19 Company for an order granting Approval ) of a Written Plan for Purposes of ) AS 38.05.180(f)(5) ) Mazch 13, 2003 ORDER IT APPEARING THAT: On February 13, 2003, Marathon Oil Company, submitted the Falls Creek Field Plan under AS 31.05.030(1) and 20 AAC 25.565. A copy of the Falls Creek Field Plan is attached as Exhibit 1. Notice of public hearing to be held on March 13, 2003 was published in the Anchorage Daily News on February 17, 2003. A public hearing was held on Mazathon's Oil Company Falls Field Plan on March 13, 2003. The Falls Creek Field Plan contains a voluntary agreement by Mazathon Oil Company to use its best efforts to employ residents of this state, consistent with law, and to contract with firms in this state for work in connection with the development of the field, whenever feasible. NOW, THEREFORE, IT IS .ORDERED that Mazathon Oil Company's Falls Creek Field Plan is approved pursuant to AS 31.05.030(1). DONE at Anchorage, Alaska and dated March 13, 2003. n~~:, ~.~r ~N~~ ~, N \_ ~' > ~- ,,~ ~~_~r ~, C`k, ;1 C__._..___.-- a Pa ' ,Chair Alaska Oil and Gas Conse tion Commission Randy Ruedrich, Commissioner Alaska Oil and Gas Conservation Commission Daniel Donkel 2121 North Bayshore Drive, Ste 1219 Miami, FL 33137 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Jim Yancey Seal-Tite International 500 Deer Cross Drive Madisonville, LA 70447 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Conoco Inc. Mary Jones PO Box 1267 XTO Energy, Inc. Ponca Ciry, OK 74602-1267 Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James. 200 West Douglas, Ste 525 Wichita, KS 67202 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Paul Walker G. Scott Pfoff Purvin Gertz, Inc. Chevron Aurora Gas, LLC Library 1301 McKinney, Rm 1750 10333 Richmond Ave, Ste 710 600 Travis, Ste 2150 Houston, TX 77010 Houston, TX 77042 Houston, TX 77002 G. Havran David McCaleb William Holton, Jr. Gaffney, Cline & Associations IHS Energy Group Marathon Oil Company Library GEPS Law Department 1360 Post Oak Blvd., Ste 2500 5333 Westheimer, Ste 100 5555 San Fecipe St. Houston, TX 77056 Houston, TX 77056 Houston, TX 77056-2799 W. Allen Huckabay T.E. Alford Corry Woolington ConocoPhillips Petroleum Company ExxonMobil Exploration Company ChevronTexaco Offshore West Aftica Exploration PO Box 4778 Land-Alaska 600 North Dairy Ashford Houston, TX 77210-4778 PO Box 36366 Houston, TX 77079-1175 Houston, TX 77236 Texico Exploration & Production Chevron USA Donna Williams PO Box 36366 Alaska Division World Oil Houston, TX 77236 PO Box 1635 Statistics Editor Houston, TX 77251 PO Box 2608 Houston, TX 77252 Chevron Chemical Company Shelia McNulty Shawn Sutherland Library Financial Times Unocal PO Box 2100 PO Box 25089 Revenue Accounting Houston, TX 77252-9987 Houston, TX 77265-5089 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez James White Doug Schultze Tesoro Refining and Marketing Co. Intrepid Prod. Co./Alaskan Crude XTO Energy Inc. Supply & Distribution 4614 Bohill 3000 North Garfield, Ste 175 300 Concord Plaza Drive SanAntonio, TX 78217 Midland, TX 79705 San Antonio, TX 78216 Robert Gravely ~ George Vaught, Jr. ~ Jerry Hodgden 7681 South Kit Carson Drive PO Box 13557 Hodgden Oil Company Littleton, CO 80122 Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Richard Neahring John Levorsen Kay Munger NRG Associates 200 North 3rd Street, #1202 Munger Oil Information Service, Inc President Boise, ID 83702 PO Box 45738 PO Box 1655 Los Angeles, CA 90045-0738 Colorado Springs, CO 80901 John F. Bergquist Samuel Van Vactor Thor Cutler OW-137 Babson and Sheppard Economic Insight Inc. US EPA egion 10 PO Box 8279 3004 SW First Ave. 1200 Sixth Ave. Long Beach, CA 90808-0279 Portland, OR 97201 Seattle, WA 98101 Michael Parks Jim Arlington Duane Vaagen Marple's Business Newsletter Forest Oil Fairweather 117 West Mercer St, Ste 200 310 K Street, Ste 700 715 L Street, Ste 7 Seattle, WA 98119-3960 Anchorage, AK 99501 Anchorage, AK 99501 Robert Mintz Ed Jones Richard Mount State of Alaska Aurora Gas, LLC State of Alaska Department of Law Vice President Department of Revenue 1031 West 4th Ave., Ste 200 1029 West 3rd Ave., Ste 220 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Anchorage, AK 99501 Anchorage, AK 99501 Julie Houle Susan Hill Cammy Taylor State of Alaskan DNR State of Alaska, ADEC 1333 West 11th Ave. Div of Oil & Gas, Resource Eval. EH Anchorage, AK 99501 550 West 7th Ave., Ste 800 555 Cordova Street Anchorage, AK 99501 Anchorage, AK 99501 Williams VanDyke Tim Ryherd Trustees for Alaska State of Alaska State of Alaska 1026 West 4th Ave., Ste 201 Department of Natural Resources Department of Natural Resources Anchorage, AK 99501-1980 550 West 7th Ave., Ste 800 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Anchorage, AK 99501 Mark Wedman John Hams Ciri Halliburton NI Energy Development Land Department 6900 Arctic Blvd. Tubular PO Box 93330 Anchorage, AK 99502 3301 C Street, Ste 208 Anchorage, AK 99503 Anchorage, AK 99503 Mark Dalton Mark Hanley Schlumberger HDR Alaska Anadarko Drilling and Measurements 2525 C Street, Ste 305 3201 C Street, Ste 603 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99503 Jack Laasch Baker Oil Tools Rob Crotty Natchiq 4730 Business Park Blvd., #44 C/O CH2M HILL Vice President Government Affairs Anchorage, AK 99503 301 West Nothern Lights Blvd 3900 C Street, Ste 701 Anchorage, AK 99503 Anchorage, AK 99503 Judy Brady ~ Arlen Ehm • Greg Noble Alaska Oil & Gas Associates 2420 Foxhall Dr. Bureau of Land Management 121 West Fireweed Lane, Ste 207 Anchorage, AK 99504-3342 Energy and Minerals Anchorage, AK 99503-2035 6881 Abbott Loop Rd Anchorage, AK 99507 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jill Schneider US Geological Surrey 4200 University Dr. Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Bill Bocast PACE Local 8-369 c/o BPX North Slope, Mailstop P-8 PO Box 196612 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Bob Shavelson Cook Inlet Keeper PO Box 3269 Homer, AK 99603 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,lnc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Kristen Nelson Jordan Jacobsen IHS Energy Alyeska Pipeline Service Company PO Box 102278 Law Department Anchorage, AK 99510-2278 1835 So. Bragaw Anchorage, AK 99515 Robert Britch, PE Jeanne Dickey Northern Consulting Group BP Exploration (Alaska), Inc. 2454 Telequana Dr. Legal Department Anchorage, AK 99517 PO Box 196612 Anchorage, AK 99518 Tesoro Alaska Company Jack Hakkila PO Box 196272 PO Box 190083 Anchorage, AK 99519 Anchorage, AK 99519 J. Brock Riddle Kevin Tabler Marathon Oil Company Unocal Land Department PO Box 196247 PO Box 196168 Anchorage, AK 99519-6247 Anchorage, AK 99519-6168 BP Exploration (Alaska), Inc. Dudley Platt Land Manager D.A. Platt 8~ Associates PO Box 196612 9852 Little Diomede Cr. Anchorage, AK 99519-6612 Eagle River, AK 99577 Peter McKay Shannon Donnelly 55441 Chinook Rd Phillips Alaska, Inc. Kenai, AK 99611 HEST-Enviromental PO Box 66 i; Kenai, AK 99611 Kenai Peninsula Borough ~ Penny Vadla Economic Development Distr Box 467 14896 Kenai Spur Hwy #103A Ninilchik, AK 99639 Kenai, AK 99611-7000 Claire Caldes James Gibbs US Fish & Wildlife Service PO Box 1597 Kenai Refuge Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669 John Tanigawa Charles Boddy Evergreen Well Service Company Usibelli Coal Mine, Inc. PO Box 871845 100 Cushman Street, Suite 210 Wasilla, AK 99687 Fairbanks, AK 99701-4659 Cliff Burglin Hany Bader PO Box 131 State of Alaska Fairbanks, AK 99707 Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Williams Thomas North Slope Borough Arctic Slope Regional Corporation PO Box 69 Land Department Barrow, AK 99723 PO Box 129 Barrow, AK 99723 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK 99664 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 th 333 West 7 Avenue, Suite 100 ~ • ~ ~ ~ Anchorage, AK 99501 ~ ~ ~ • ~ ~ ~ Phone (907) 279-1433 Fax (907) 276-7542 • ~ • • • 0 To: Brock Riddle From: Jody Colombie Fax: 564-6489 Pages: 2 Phone: Date: 3/13/2003 Re: Falls Creek Order #19 CC: ^ Urgent ^ For Review ^ Please Comment ^ Please Reply ^ Please Recycle • Comments: ~~ • • • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 I! 16 17 18 19 20 21 22 23 24 25 • ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING In Re: ) Commission's consideration of Marathon ) Oil's Falls Creek Field Plan. ) TRANSCRIPT OF PROCEEDINGS Anchorage, Alaska March 13, 2003 9:00 o'clock a.m. COMMISSIONERS: SARAH PALIN, Chairperson RANDY RUEDRICH ~~,~, _ _. ,;-,f-; METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 • 2 3 4 5 6 7 8 9~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 i• U TESTIMONY MR. BARNES END OF PROCEEDINGS • TABLE OF CONTENTS METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Ataska 99501 (907) 276-3876 Page 4 Page 6 • ~ • ' 3 1 P R O C E E D I N G S 2 (On record) 3 CHAIR PALIN: This hearing is called to order. It's 4 Thursday, March 13th, 2003. It is 9:00 o'clock. We're here 5 at the AOGCC offices at 333 West Seventh Avenue, Suite 100. 6 I'm Sarah Palin, Chair of AOGCC. To my left is 7 Commissioner Randy Ruedrich, and joining us from Metro Court 8 Reporting is Janice Scott. This proceeding is being recorded 9 and transcribed. Arrangements for copies of the transcript 10 can be made directly with Metro. 11 The purpose of today's hearing is to consider Marathon 12 Oil Company's Falls Creek Field Plan, for purposes of Alaska 13 Statute 31.05.030 (i), and to grant approval of the plan. If 14 the plan contains a voluntary agreement by the lessee, to use 15 its best efforts to employ residents of the State of Alaska, 16 consistent with law. And, to contract with firms in the state 17 for work in connection with the development of the field, 18 including fabrication and installation of required facilities 19 whenever feasible. 20 Although this Commission has authority to approve the 21 proposed field plan, the authority to actually grant royalty 22 relief rests with the Department of Natural Resources. 23 Notice of this public hearing was published in the 24 Anchorage Daily News on February 17th, 2003. Public comments 25 were filed by Conoco Phillips on March 12th, 2003, and are METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 i ~ " 4 1 available to the public. In summary, Conoco Phillips does not 2 agree with the working interest that applies to them. And, 3 Commissioner Ruedrich, would you like to expound on that? 4 COMMISSIONER RUEDRICH: Well, I'll just comment for 5 the record, that Conoco has filed a -- Conoco Phillips has 6 filed a letter with us indicating that the -- the working 7 interest equity that is indicated in the field plan is 8 15.9104681. They indicate that under their understanding of 9 the agreements entered into to this point, that their working 10 interest appears to be 25 percent. This is not something for 11 us to resolve. We just wanted to put this into the record and 12 proceed with the rest of our business today. 13 CHAIR PALIN: Okay. Thank you, Commissioner Ruedrich. 14 Okay. And, as a representative from Marathon, if you could 15 identify yourself. State your name and spell it please, for 16 the record. 17 MR. BARNES: Thank you very much. For the record, my 18 name is John Barnes, B-a-r-n-e-s. I'm the production manager 19 for Marathon Oil Company's Alaska Business Unit. 20 I'm here this morning to briefly testify in support of 21 the Falls Creek Field Plan, which we have submitted for 22 consideration by the AOGCC. I'm also available to answer any 23 questions regarding Marathon's current and past and future 24 employment practices and plans. 25 First, I would like to state for the record that METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 i ~ 5 1 Marathon is appreciative of the opportunity to discuss our 2 field plan. We believe that it correctly identifies our 3 efforts to, wherever possible, utilize local services, local 4 contractors, local fabrication. 5 Over the last four to five years, Marathon has been 6 actively involved in exploration and development in the Cook 7 Inlet. Indeed our staff, although small, has grown from less 8 than 40 to over 50 Alaskan residents. All Marathon employees 9 that work on this project and other projects are living 10 currently in the state of Alaska, with the exception of those 11 that might be required to come up for project management roles 12 or other activities that we cannot currently fill with our 13 staff. 14 Fi i f o erations ll lt f p na y, as a resu o our expans on o 15 into the Ninilchik area, we've recently run an ad to hire four 16 operators. It's a good news bad news frankly; the good news 17 is that there are four positions, the bad news is we found 90 18 people trying to find work, trying to find employment in this 19 business. Frankly, I would like to see more activity going. 20 I think Marathon's on record as supporting additional 21 exploration in the inlet. 22 I'm off on a rabbit trail and I apologize for that, 23 but I do believe it's important for a vibrant industry, for 24 all parties to have active exploration. 25 With that, I would just like to close and answer any METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 • ` 6 1 questions. 2 CHAIR PALIN: Okay. We thank you, and we do have a 3 copy of the actual field plan before us. Mr. Ruedrich, do you 4 have any questions? 5 COMMISSIONER RUEDRICH: No, I don't. 6 CHAIR PALIN: And, Mr. Barnes, I would ask also if you 7 have any amendments or changes to that? 8 COMMISSIONER RUEDRICH: I appreciate you being here 9 today and I appreciate your motivation to do things for 10 Alaska, in terms of producing energy and hiring Alaskans. 11 MR. BARNES: Thank you. We have no amendments at this 12 time. 13 CHAIR PALIN: Okay. Thank you also, Mr. Barnes. 14 Ok B l th k i ti b M h ' t d t ay. y aw, en we re o ma erm na on y arc e a e 15 28th, and if there is nothing else to add? Commissioner 16 Ruedrich, nothing else? 17 COMMISSIONER RUEDRICH: No. I'm fine. 18 CHAIR PALIN: Okay. We'll conclude the hearing, and I 19 thank you. We're off record. 20 (Off record) 21 22 * * * END OF PROCEEDINGS 23 24 25 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 IM • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 C E R T I F I C A T E SUPERIOR COURT STATE OF ALASKA ss . I, Candice A. Bagoy Notary Public in and for the State of Alaska, do hereby certify: THAT the annexed and foregoing pages numbered 2 through 7 contain a full, true and correct transcript of the Public Hearing before the Alaska Oil and Gas Conservation Commission, taken by Janice S. Scott and transcribed by Janice S. Scott: THAT the Transcript has been prepared at the request of the Alaska Oil and Gas Conservation Commission, 333 West Seventh Avenue, Anchorage, Alaska, DATED at Anchorage, Alaska this 21st day of March, 2003. SIGNED AND CERTIFIED TO BY: a ~~ ~,, Candice A. Bagoy Notary in and for Alaska My Commission Expires: 6/30/04 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~5 • • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Falls Creek Field Plan March 13, 2003 at 9:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) ~~- IC~Ie~C..lc.. ~ 1D[lt~: ~~ ~Il1 c~~~1 ~-nt~ ~(o~-b~Z ~Ilearing_Sign-In /~ ,/ /~cGo~je~ ~}-k ~, l ~ ~ G~ l~l oS ~ e ~ a l~u. ~L~ ~'o ~- ~ ~i ~16~~` ~i ss/~ T ~S 2C.S i57~ , r I~A~ 1~~~1~-) ~'.~NO~o~a~Li~PS 1cc: G `.t. ~~vcis~>~, N~ ~ 4 a ConocoPhillips March 13, 2003 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501 Re: Comments Falls Creek Field Plan Dear Commissioners: • Patrick H. Noah Principal Land Consultant F~cploration & Land 700 G Street Room 1496 Anchorage, Alaska 99501 phone 907.265.1579 fax 907.263-4966 P.H. Noah ~ f;,onocoPhillips.com s, ~~ ~. ~. .~ a bti ConocoPhillips Alaska, Inc. ("CPAI") is a an oil and gas lease working interest owner in the Falls Creek Unit, and submits these comments regarding the Falls Creek Field Plan ("Field Plan") submitted by Marathon Oil Company for approval by the Commission pursuant to AS 31.05.030(1). The Field Plan states in section 1, page 1, that Marathon owns 50.4537191 percent of the working interest in all leases contained in the Falls Creek Field. The remaining working interest in the Falls Creek Field is owned by Unocal Oil Company (33.6358128 percent) and Phillips Alaska, Inc. (15.9104681 percent). The Field Plan states in section 2, page 1, that: The Falls Creek Field gas reserves are contained within the following oil and gas leases: ADL 590 and ADL 389737. The Field Plan does not state the basis for these assertions and CPAI (formerly known as Phillips Alaska, Inc.) must point out that both the description of the Falls Creek Field and the percentages asserted are not based on any agreement of the relevant lessees, any particular oil and gas unit area, or any participating area within a unit area. CPAI wishes to state for the record that its current ownership in the existing Falls Creek Participating Area is 25 percent. The Falls Creek Unit #1 (the only well in the field) was the basis for the formation of the Falls Creek Participating Area pursuant to section 11 of the Falls Creek Unit Agreement. The existing Participating Area for the Falls Creek Unit is intended to apply to production from the Falls Creek Field and includes ADL 590, a federal lease and various fee leasehold tracts. It does not include ADL 389737. Any change in the Falls Creek Field Plan March 12, 2003 Page 2 of 2 Participating Area ownership to reflect addition or deletion of tracts or transfers of working interest must be approved by the Department of Natural Resources ("DNR") and as to deletion of the federal lease, the Bureau of Land Management. As of this date, CPAI has not authorized or submitted any application to change CPAI's working interest ownership percentage in this Participating Area nor has CPAI received notice that any application has been submitted to add or delete tracts from the Participating Area or the Unit. . CPAI submits these comments to ensure that the record in this application is as correct as possible. The requirements for an application under AS 31.05.030 and 20 AAC 25.565 do not expressly require that the working interest ownership percentages be agreed upon or presented at the time of application, but to allow the record to reflect incorrect data could lead to problems in the future. Section 20 AAC 25.565(a)(2) does appear to require correct identification of the leases within the field and our intent is to clarify the record regarding the current status and ownership of the Falls Creek Participating Area. Thank you for your consideration of CPAI's comments in this matter. Very truly yours, ~.~~ .~~, Patrick Noah cc: J. Scott Jepsen, ConocoPhillips Alaska, Inc. B. Fullmer, ConocoPhillips Alaska, Inc. J. Brock Riddle, Marathon Oil Company Kevin Tabler, Unocal Corporation Greg Noble, BLM ~3 ALASKA OIL a.. GAS CONSERVATION COMMISSTON FAX 907-276-7542 ' PHON E 9.07-279-]433 FACSIMILE TRANSMITTAL SHEET . TO: / f G// FROM: COMPANY: DATE: ~ FAX NUMBER: ~ ~~ ~ j/ / TOTAL NO. OF PAG INCLUDING COVER: < PHONE NUMBER ~ ~ ~„ti °"" SENDER'S REFERENCE NUMBER: ^ URGENT ^ FOR REVIEW ^ PLEASI; COMMENT ^ PLEASE REPLY ^ PLEASE RECYCLE -NOTES/COMMENTS: AOGCC 333 WEST 7TH AVENUE, .SUITE 700 ANCHORAGE, AK 99507-3935 Falls Creek field plan ~ • Subject: Falls Creek field plan Date: Tue, 18 Feb 2003 04:53:03 -0900 From: Kristen Nelson <nelson@gci.net> To: Jody colombie@admin.state.ak.us Good morning Jody, hope your trip was a great one... Saw the notice of the Falls Creek field plan. Is that something you can email (nelsonQgci.net)? Fax me at 248-3437? or do 2 need to come by and pick up? Please advise, thanks, Kristen (248-3622) C°'~i~~~ 1 of 1 2/18/2003 10:25 AM '1TG STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE z.. aT BE IN TRIPLICATE SHOWING ADVERTI, ING ORDER NO., TIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE /~ 0.02 314036 A f 8fl OR 1N OICf ESS- F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Febru 14 2003 ° M Anchorage, AK 99501 PHONE PcN DATES ADVERTISEMENT REQUIRED o Anchorage Daily News P O Box 149001 AnchOra e AK 99S 14 11 g , : February 17, 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal ^ Display ^ Classified ^Other (Specify) SEE ATTACHED PUBLIC HEARING SEND 1NVOlCE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., SUlte 100 Anchora a AK 99501 PAGE 1 OF 2PAGES TOTAL OF ALLPAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN s ARC 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID ~ 03 02140100 73540 2 3 4 REQUISITI ' l DI~#SION APPROVAL: ll.d,(. r ? 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM * • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Falls Creek Field Request for Approval Pursuant to AS 31.05.030(1) Marathon Oil Company, by letter dated February 12, 2003, has submitted the Falls Creek Field Plan for purposes of AS 38.05.180(f)(5) to the Alaska Oil and Gas Conservation Commission and requested approval pursuant to AS 31.05.030(1). AS 31.05.030(1) requires the Commission to hold a public hearing on the plan and within 45 days after receipt of the plan, grant approval of the plan if the plan contains a voluntary agreement by the lessee to use it best efforts to employ residents of this state consistent with law and to contract with fields in this state for work in connection with the development of the field, including the fabrication and installation of required facilities whenever feasible. After a lessee's plan has been approved, the lessee is entitled to a royalty reduction under AS 38.05.180(f)(5). Copies of the Falls Creek Field Plan are available at the Commission office; please contact Jody Colombie at 793-1221. A hearing will be held at the Alaska Oil and Gas Conservation Commission, 333 West Seventh Avenue, Anchorage AK 99501 at 9:00. am on March 13, 2003 in conformance with 20 AAC 25.540. All interested persons are invited to present testimony. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1221 by March 6, 2003. ~`, Camm Oechsli Tayl Chair Published February 17, 2003 ADN 02314036 ~~ Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 AD# DATE PO ACCOUNT 717336 02/17/2003 02314036 STOF0330 STATE OF ALASKA THIRD JUDICIAL DISTRICT PRICE OTHER OTHER OTHER OTHER OTHER GRAND PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES.#4 CHARGES #5 TOTAL $132.54 $132.54 $0.00 $0.00 $0.00 $0.00 $0.00 $132.54 Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in ar. office maintained at the aforesaid place of publication of said newspaper. That the annexed. is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn to me before this date: ~-~~-v-3 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMIS ON EXPIR ,'" ~ D t/o ``l C C C C f t ttr,~ ~` ~`~~ ~¢ ~. ,' ~J~~~~tl1)ii3 ,~°~ Notice of Public Hearins STATE OF;ALASKA Alaska Oil'pnd Gds CpniuBrvgtipn Commission Re:Pa11s Creek Field Qegi18$t far Appl'OYaI Pur$Udflt YO AS 31.05.030(1) Marathon (?il Company, by iefter Bitted Fetirv- arv 12, 20031 has subhtltte¢ tht°1?alls Creek F(etd Plon forpurpo;es of AS 38;Oi.180(f9(8> to the Alaska Oil. and Gas Gohservatlon Commission and requested apW ova(.qursuant-t0 A~S81.~.030(i). AS 31.OS.030(il regaires tits Gortntiis$lon to hold a qutr I)c hearin§ an the Pigrran¢ within 45; days aff~r' re- ceipt of the.gigq, arant,'dpproYal of-the plan if,Ttae plan cgntalns a voluntary gareement by the lessee tou56 it best efforts- to ilrylptoy residents of iriis, state con9istent with iaw and to <ontract~wlth fields in this State for work in connect)on with the developmentpf the f)eld?,.ihcluding the'fabricatiaCl the lessee is entitled to a ravalty reduction wader AS'38.05.t80(f)(5). CApies of the Falls Creek Field Pion are av4i1• able at-the ConirriissionaNice: plea;e confect Jody Colombie at 793-1221. A hearing will be hgld at the Alaska flq-and bas l.ofl$ervatlon Cofnn>yission, 333 yJe$f Seventh Av- enue, AnCho~aee AKF99501 at 9:00 am on March t3; 2003 in Conformance witfh 2l) AAG 25.540. All inter- ested persons are invited To present testimony. If you qre a person with a disability who may heed' a special'madifictption'in order to comment oc to ottehd fhe public ftearinsa, pl$(ise contact Jody Colombie of 793.122t by AAorCh 6.20A3• Cammy Oechsli Tgvton thair Publishi l=2bruary 17, 20Ki Re: Legal Notice • • Subject: Re: Legal Notice Date: 14 Feb 2003 10:33:13 -0900 From: Kimberly Kirby <kkirby@adn.com> To: Jody Colombie <Jody_colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your ad. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 717336 Run Dates: February 17, 2003 Your PO# 02314036 Total: $132.54 Thank You, Kim Kirby Anchorage Daily News Legal Classified Ad Representative E-Mail: legaladsC~adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Friday, February 14, 2003, Jody Colombie <jody_colombiec~admin.state.ak.us> wrote: >Please publish the attached notice. E-mail confirmation. >Jody 1 of 1 2/18/2003 4:22 PM STATE OF ALASKA ~ NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO.,IFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) W ITH ATTACHED COPY OF AO.02314035 A ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE B FOR I ICE ADDRESS '' l' AOGCC AGENCY CONTACT DATE OF A.O. R 100 S it 7th A 33 W u e venue, est 3 PCN ° Anchorage, AK 99501 PHONE M _ DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News February 17, 2003 P O Box 149001 AK 99S 14 Anchorage ~xrIR~ET~r o rNE D TES p~ UBLE LINES MUST BE PRINTED IN ITS , SPECIAL INSTRUCTIONS: Account #STOF0330 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 swom, 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 2003, and thereafter for consecutive days, the last publication appearing on the day of .2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and swom to before me This _ day of 2003, Notary public for state of My commission expires AO.FRM 02-901 (Rev. 3/94) PUBLISHER Page 2 Re: Legal Notice Subject: Re: Legal Notice Date: 14 Feb 2003 10:33:13 -0900 From: Kimberly Kirby <kkirby@adn.com> To: Jody Colombie <jody colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your ad. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 717336 Run Dates: February 17, 2003 Your PO# 02314036 Total: $132.54 Thank You, Kim Kirby Anchorage Daily News Legal Classified Ad Representative E-Mail: legaladsc~adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Friday, February 14, 2003, Jody Colombie <jody_colombieQadmin.state.ak.us> wrote: >Please publish the attached notice. E-mail confirmation. >Jody 1 of 1 2/14/2003 12:09 PM Daniel Donkel 2121 North Bayshore Drive, Ste 1219 Miami, FL 33137 Jim Yancey Seal-Tite International 500 Deer Cross Drive Madisonville, LA 70447 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Conoco Inc. Mary Jones PO Box 1267 XTO Energy, Inc. Ponca City, OK 74602-1267 Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James 200 West Douglas, Ste 525 Wichita, KS 67202 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Paul Walker G. Scott Pfoff Purvin Gertz, Inc. Chevron Aurora Gas, LLC Library 1301 McKinney, Rm 1750 10333 Richmond Ave, Ste 710 600 Travis, Ste 2150 Houston, TX 77010 Houston, TX 77042 Houston, TX 77002 G. Havran David McCaleb William Holton, Jr. Gaffney, Cline & Associations IHS Energy Group Marathon Oil Company Library GEPS Law Department 1360 Post Oak Blvd., Ste 2500 5333 Westheimer, Ste 100 5555 San Fecipe St. Houston, TX 77056 Houston, TX 77056 Houston, TX 77056-2799 W. Allen Huckabay T.E. Alford Corry Woolington ConocoPhillips Petroleum Company ExxonMobil Exploration Company ChevronTexaco Offshore West Africa Exploration PO Box 4778 Land-Alaska 600 North Dairy Ashford Houston, TX 77210-4778 PO Box 36366 Houston, TX 77079-1175 Houston, TX 77236 Texico Exploration & Production Chevron USA Donna Williams PO Box 36366 Alaska Division World Oil Houston, TX 77236 PO Box 1635 Statistics Editor Houston, TX 77251 PO Box 2608 Houston, TX 77252 Chevron Chemical Company Shelia McNulty Shawn Sutherland Library Financial Times Unocal PO Box 2100 PO Box 25089 Revenue Accounting Houston, TX 77252-9987 Houston, TX 77265-5089 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez James White Doug Schultze Tesoro Refining and Marketing Co. Intrepid Prod. Co./Alaskan Crude XTO Energy Inc. Supply & Distribution 4614 Bohill 3000 North Garfield, Ste 175 300 Concord Plaza Drive SanAntonio, TX 78217 Midland, TX 79705 San Antonio, TX 78216 • Robert Gravely George Vaught, Jr. ~ Jerry Hodgden 7681 South Kit Carson Drive PO Box 13557 Hodgden Oil Company Littleton, CO 80122 Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Richard Neahring John Levorsen Kay Munger NRG Associates 200 North 3rd Street, #1202 Munger Oil Information Service, Inc President Boise, ID 83702 PO Box 45738 PO Box 1655 Los Angeles, CA 90045-0738 Colorado Springs, CO 80901 John F. Bergquist Samuel Van Vactor Thor Cutler OW-137 Babson and Sheppard Economic Insight Inc. US EPA egion 10 PO Box 8279 3004 SW First Ave. 1200 Sixth Ave. Long Beach, CA 90808-0279 Portland, OR 97201 Seattle, WA 98101 Michael Parks Jim Arlington Duane Vaagen Marple's Business Newsletter Forest Oil Fairweather 117 West Mercer St, Ste 200 310 K Street, Ste 700 715 L Street, Ste 7 Seattle, WA 98119-3960 Anchorage, AK 99501 Anchorage, AK 99501 Robert Mintz Ed Jones Richard Mount State of Alaska Aurora Gas, LLC State of Alaska Department of Law Vice President Department of Revenue 1031 West 4th Ave., Ste 200 1029 West 3rd Ave., Ste 220 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Anchorage, AK 99501 Anchorage, AK 99501 Julie Houle Susan Hill Cammy Taylor State of Alaskan DNR State of Alaska, ADEC 1333 West 11th Ave. Div of Oil & Gas, Resource Eval. EH Anchorage, AK 99501 550 West 7th Ave., Ste 800 555 Cordova Street Anchorage, AK 99501 Anchorage, AK 99501 Williams VanDyke Tim Ryherd Trustees for Alaska State of Alaska State of Alaska 1026 West 4th Ave., Ste 201 Department of Natural Resources Department of Natural Resources Anchorage, AK 99501-1980 550 West 7th Ave., Ste 800 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Anchorage, AK 99501 Mark Wedman John Harris Ciri Halliburton NI Energy Development Land Department 6900 Arctic Blvd. Tubular PO Box 93330 Anchorage, AK 99502 3301 C Street, Ste 208 Anchorage, AK 99503 Anchorage, AK 99503 Mark Dalton Mark Hanley Schlumberger HDR Alaska Anadarko Drilling and Measurements 2525 C Street, Ste 305 3201 C Street, Ste 603 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99503 Jack Laasch Baker Oil Tools Rob Crotty Natchiq 4730 Business Park Blvd., #44 C/O CH2M HILL Vice President Government Affairs Anchorage, AK 99503 301 West Nothern Lights Blvd 3900 C Street, Ste 701 Anchorage, AK 99503 Anchorage, AK 99503 ~ Judy Brady Arlen Ehm Greg Noble Alaska Oil & Gas Associates 2420 Foxhall Dr. Bureau of Land Management 121 West Fireweed Lane, Ste 207 Anchorage, AK 99504-3342 Energy and Minerals Anchorage, AK 99503-2035 6881 Abbott Loop Rd Anchorage, AK 99507 Rose Ragsdale Jeff Walker Jill Schneider Rose Ragsdale & Associates US Minerals Management Service US Geological Survey 3320 E. 41st Ave Regional Supervisor 4200 University Dr. Anchorage, AK 99508 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Anchorage, AK 99508 Richard Prentki Jim Scherr Paul L. Craig US Minerals Management Service US Minerals Management Service Trading Bay Energy Corp 949 East 36th Ave., 3rd Floor Resource Evaluation 5432 East Northern lights, Ste 610 Anchorage, AK 99508 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Anchorage, AK 99508 Thomas R. Marshall, Jr. Chuck O'Donnell Gordon Severson 1569 Birchwood Street Veco Alaska,lnc. 3201 Westmar Cr. Anchorage, AK 99508 949 East 36th Ave., Ste 500 Anchorage, AK 99508-4336 Anchorage, AK 99508 Jim Ruud Kristen Nelson Jordan Jacobsen Phillips Alaska, Inc. IHS Energy Alyeska Pipeline Service Company Land Department PO Box 102278 Law Department PO Box 100360 Anchorage, AK 99510-2278 1835 So. Bragaw Anchorage, AK 99510 Anchorage, AK 99515 Perry Markley Robert Britch, PE Jeanne Dickey Alyeska Pipeline Service Company Northern Consulting Group BP Exploration (Alaska), Inc. Oil Movements Department 2454 Telequana Dr. Legal Department 1835 So. Bragaw - MS 575 Anchorage, AK 99517 PO Box 196612 Anchorage, AK 99515 Anchorage, AK 99518 David Cusato Tesoro Alaska Company Jack Hakkila 600 West 76th Ave., #508 PO Box 196272 PO Box 190083 Anchorage, AK 99518 Anchorage, AK 99519 Anchorage, AK 99519 Bill Bocast J. Brock Riddle Kevin Tabler PACE Local 8-369 Marathon Oil Company Unocal c/o BPX North Slope, Mailstop P-8 Land Department PO Box 196247 PO Box 196612 PO Box 196168 Anchorage, AK 99519-6247 Anchorage, AK 99519 Anchorage, AK 99519-6168 Sue Miller BP Exploration (Alaska), Inc. Dudley Platt BP Exploration (Alaska), Inc. Land Manager D.A. Platt & Associates PO Box 196612 PO Box 196612 9852 Little Diomede Cr. Anchorage, AK 99519-6612 Anchorage, AK 99519-6612 Eagle River, AK 99577 Bob Shavelson Peter McKay Shannon Donnelly Cook Inlet Keeper 55441 Chinook Rd Phillips Alaska, Inc. PO Box 3269 Kenai, AK 99611 HEST-Enviromental Homer, AK 99603 PO Box 66 Kenai, AK 99611 ~J Kenai Peninsula Borough Penny Vadla Economic Development Distr Box 467 14896 Kenai Spur Hwy #103A Ninilchik, AK 99639 Kenai, AK 99611-7000 Claire Caldes James Gibbs US Fish & Wildlife Service PO Box 1597 Kenai Refuge Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669 John Tanigawa Charles Boddy Evergreen Well Service Company Usibelli Coal Mine, Inc. PO Box 871845 100 Cushman Street, Suite 210 Wasilla, AK 99687 Fairbanks, AK 99701-4659 Cliff Burglin Harry Bader PO Box 131 State of Alaska Fairbanks, AK 99707 Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Williams Thomas North Slope Borough Arctic Slope Regional Corporation PO Box 69 Land Department Barcow, AK 99723 PO Box 129 Barrow, AK 99723 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 i Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK 99664 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 ` r1 M Marathon MARATHON Oil Company February 13, 2003 Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 RE: Falls Creek Field Plan Ninilchik Unit Kenai Peninsula, Alaska Dear Steve: Alaska B~ss Unit P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 Enclosed please find Marathon Oil Company's Field Plan for the Falls Creek Field. Should you need additional information, please advise. r. Brock Riddle Land Manager Enclosure cc: Kevin A. Tabler Union Oil Company of California Patrick Noah Conoco Phillips Alaska Environmentally aware for the long run. Falls Creek Field Plan Marathon Oil Company -Operator 1. Identification of Participating Lessees This Falls Creek Field Plan ("Plan") has been prepared by Marathon Oil Company ("Marathon") for operations conducted by Marathon as field operator for the Falls Creek Field, as that field is defined in Section 2 herein. Marathon owns 50.4537191 percent of the working interest in all leases contained in the Falls Creek Field. The remaining working interest in the Falls Creek Field is owned by Unocal Oil Company (33.6358128 percent) and Phillips Alaska Inc. (15.9104681 percent). These companies are the participating lessees in this Falls Creek Field Plan prepared for the Alaska Oil & Gas Conservation Commission ("Commission") pursuant to AS 31.05.030 and 20 AAC 25.565. Communications in regards to this Plan should be directed to Marathon as the operator of the Falls Creek Field at the following address: Address: P.O. Box 196168 Anchorage, Alaska 99519-6168 Primary Contact: J. Brock Riddle Phone: 907-564-6428 2. Identification of Field Falls Creek Unit #1 was the first well to penetrate the Falls Creek structure. This well, drilled in 1960 and 1961 by Standard Oil Company of California, discovered gas in the Tyonek Formation. Several intervals were tested, and three intervals in the Tyonek were found to be productive: one between 8395' - 8415' MD produced at a rate of 20 - 30 mcf/day, one between 7562' - 7600' produced at a rate of 1830 - 2100 mcf/day, a third interval from 5442' - 5470' tested 335 - 400 mcf/day, and a fourth interval from 5290' - 5315' flowed 680 mcf/day. The interval from 7562' to 7600' was extensively tested from June 21 to 25, 1961. Open flow potential was determined to be 2900 mcf/day, with a stabilized rate of 1980 mcf/day and 2.2 barrels of water/day during aforty-eight hour flow period following the open flow potential test. The well was subsequently shut-in. Marathon re-drilled the Falls Creek Unit #1 in 2001, and tested the Tyonek T-3 reservoir between 8714 and 8750' MD on April 10, 2002. The calculated 24-hour flow rate for this reservoir is 6687 mcf/day, with no associated oil or water production. To date, the Falls Creek Unit #1 RD is the only well in the field. The Falls Creek Field gas reserves are contained within the following oil and gas leases: ADL 590 and ADL 389737 Falls Creek Field Plan _1_ , Marathon Oil Company -Operator .~ , 3. General Timetable of Planned Field Development Activities The Falls Creek Unit #1 RD is currently shut-in awaiting the completion of the Kenai- Kachemak Pipeline, which will transport the natural gas north to the Kenai area to service various local and industrial markets. First gas delivery is anticipated in the 4~ quarter of 2003. Once production is established and the associated data is obtained, the field will be developed as appropriate. 4. General Timetable of Expected Hiring and Contracting Decisions Marathon currently is accepting applications for four production operator positions to assist with bringing the Ninilchik Unit, which includes the Falls Creek Field, into production. Aside from those four production operator positions, at this time, Marathon does not anticipate hiring any additional employees or retaining the services of any additional contractors to bring the Falls Creek Field into production. Marathon expects to complete any work necessary to bring the Falls Creek Field into production with its current Kenai employees and its current compliment of contractors. 5. Description of Lessee's Local Hire Program 5.1 General Statement of Policy Marathon, as operator of the Falls Creek Filed, is a strong proponent of using local personnel and companies when they are available and their experience and skills meets its business needs and objectives. Since Marathon established its offices in Alaska in 1958, those offices and field operations have been staffed almost exclusively with Alaska residents. Currently, Marathon has 33 employees in Anchorage and 19 in Kenai. All of those employees are Alaska residents. Marathon's annual Alaska operating and capital costs are over $75 million. The majority of those expenditures pass directly into the Alaska economy. It is the formal policy of Marathon to use local manpower, contractors and resources to the maximum extent possible in the planning, engineering, permitting, construction, and operation of all facilities and operations covered under this Plan. 5.2 Definition of Local Manpower and Contractors Marathon defines "local manpower" as individuals who are residents of the State of Alaska pursuant to AS 01.10.055. Marathon defines "local contractor' to include "firms in the state" as defined in 20 AAC 25.565. Falls Creek Field Plan _2_ Marathon Oil Company -Operator •. ~ 5.3 Contracting Methods Marathon will contract for or purchase services, equipment and supplies using one of the following two methods: Sole-source contracting Competitive bidding Sole-source contracting will be used primarily for obtaining services, equipment and supplies from "local" vendors and contractors. Sole-source contracting may also be used for certain specialty services that are unique and not available locally. Competitive bidding will also be a method of identifying services, equipment and supplies that could be supplied from non-local sources. Marathon will conduct competitive bidding by issuing invitations to bid to selected bidders identified by Marathon as having the ability to (1) provide services or supply equipment in a safe and cost effective manner that comply with local, state and federal laws and (2) utilize practices recommended by the American Petroleum Institute ("API"). 5.4 Selection Criteria for Contractors and Vendors The following criteria will be the primary determinants in Marathon's selection of contractors and vendors of equipment and services used to implement this Plan; ^ Ability to provide the goods and/or services necessary to fulfill the requirements of the solicitation. ^ Experience in supplying similar solicitations. ^ Firm's safety record/history. ^ Qualification as local contractor. ^ Cost of goods and/or services. ^ Past performance history with Marathon. ^ Ability to provide "Best Available Technology" If the above criteria are similar for two or more contractors or vendors supplying the same equipment or services, Marathon will give preference in the competitive bidding process to those who also use local contracts and supplies. 5.5 Alaska Hiring Procedures It is the goal of Marathon to fill all of its new staff positions for operations in the State of Alaska with local residents, provided applicants possess the necessary skills and experience. In advertising or soliciting for applicants for new positions or to fill vacancies in existing positions, Marathon will use the following sources; Falls Creek Field Plan _3_ Marathon Oil Company -Operator ^ Local newspapers. ^ Alaska Job Service ^ Current employees ^ Local contractors and firms in the state, or other credible sources. 5.6 Alaska Product Reference Marathon recognizes that the State of Alaska Division of Trade and Development has established an "Alaska Product Preference Program" to promote the use of locally. manufactured products (www.dced.state.ak.us/cbd/prodpref/prodpref.htm). Marathon supports the use of locally manufactured products and encourages contractors and vendors responding to Marathon's invitations to bid to utilize this program. Although this program is not specifically adopted as part of this Plan, a list of manufacturers participating in this program is provided in this Plan (Appendix A) in order to ensure that Marathon employees and contractors are aware of the program. 5.7 Other Alaska Preference Programs Pursuant to numerous Oil and Gas Lease Agreements with Cook Inlet Region, Inc. ("CIRI"), Marathon is obligated to use its best efforts to preferentially hire CIRI shareholders to the extent permitted by law, applicable labor contracts and local hire provisions. 6. Lessee Agreement and Certification Marathon Oil Company, as operator of the Falls Creek Field, voluntary agrees, and by evidence of the signature below, also certifies, that in implementing this Plan it will use its best efforts to employ residents of the State of Alaska, consistent with law, and to contract with firms in the State of Alaska in connection with the development of the Falls Creek Field, including the fabrication and installation of required facilities, whenever feasible. ~~1 ~ Signature: `~ ~!~~~ Printed Name: J~Brock Riddle Title: Attorney-In-Fact Date: February , 3 , 2003 Falls Creek Field Plan _4_ Marathon Oil Company -Operator ~' ~ ~ Appendix A Alaska Product Preference Program Certified Companies 94 companies are currently certified. A.T. Publishing & Printing, Inc. Anchorage 907-349-7506 AAA Fence, Inc. Anchorage 907-349-7000 AGGPRO Anchorage 907-344-3897 Acme Fence Company, Inc. Anchorage 907-522-1155 Alaska Built Homes Juneau 907-789-2092 Alaska Correctional Industries Juneau 907-465-3309 Alaska Fab Anchorage 907-349-3000 Alaska Fresh Cut Inc. Anchorage 907-349-8343 Alaska Garden & Pet Supply, Inc. Anchorage 907-279-4519 Alaska Laser Printina & Mailing Services Anchorage 907-561-8000 Alaska Litho, Inc. Juneau 907-586-3170 Alaska Printing, Inc. Anchorage 907-563-1989 Alaska Sheet Metal, Inc. Anchorage 907-279-6009 Alaska Steel Company Anchorage 907-561-1188 Alchem, Inc. Anchorage 907-243-2177 Allied Steel Construction Inc. Anchorage 907-562-4088 Anchor Point Greenhouse Anchor Point 907-235-7288 Anchorage Daily News Anchorage 907-257-4366 Anchorage Printinq, Inc. Anchorage 907-272-2213 Anchorage Sand & Gravel Co., Inc. Anchorage 907-274-3410 Anchorage Tank & Welding, Inc. Anchorage 907-272-3543 Architectural Metal Products Fairbanks 907-456-3089 Arctic Foundations, Inc. Anchorage 907-562-2741 Arctic Structures, LLC Anchorage 907-522-2425 Assets, Inc. Anchorage 907-279-6617 Bailey's Furniture, Inc. Anchorage 907-563-4083 Burford Concrete Production Auke Bay 907-780-4636 Cache Camper Manufacturing, Inc. Palmer 907-745-4061 Coastal Cold Storage, Inc. Petersburg 907-772-4177 Color Art Printing Co., Inc. Anchorage 907-277-2409 Commercial Printino Fairbanks 907-459-7567 Commercial Signs &Printina Juneau 907-586-2115 Contech Construction Products, Inc. Palmer 907-745-4292 Continuous Printing of Alaska, Inc. Anchorage 907-277-0446 Control Craft, Inc. Anchorage 907-561-7065 Culfabco Inc. Anchorage 907-344-1144 Custom Woodworking_Inc. Fairbanks 907-455-6559 D & S Concrete, Inc. Anchorage 907-349-6031 ~• Davis Block & Concrete Soldotna 907-262-5106 Dreamworks Cabinetry LLC Fairbanks 907-459-0311 Dryden Instrumentation Anchorage 907-344-4995 Emulsion Products of Alaska Eagle River 907-696-5366 Engineered Fire Systems, Inc. Anchorage 907-274-7973 Fairbanks Precasters, Inc. North Pole 907-488-9763 Fairbanks Welding_& Fabrication Fairbanks 907-458-9353 Fire Art by Griz Big Lake 907-892-7700 Frank's Plumbing, Heating, & Sheetmetal, Inc. Sitka 907-747-8806 Freeform Designs Anchorage 907-561-5177 Frontier Printing Services Inc. Anchorage 907-561-7848 General Mechanical, Inc. Anchorage 907-522-5959 Graphic North, Inc. Fairbanks 907-452-1907 Great Northwest Inc. Fairbanks 907-452-5617 Greer Tank & Welding, Inc. Fairbanks 907-452-1711 Greer Tank, Inc. Anchorage 907-243-2455 Rector's Welding Inc. North Pole 907-488-6432 Hobbs Industries, Inc. Anchorage 907-278-7283 Holaday-Parks, Inc. Fairbanks 907-452-7151 IMSA Anchorage 907-349-2727 Insulfoam Anchorage 907-279-9407 Interior Alaska Fish Processors Fairbanks 907-456-3885 JR Heritage Construction Inc. Anchorage 907-349-4427 Juneau Truss, Inc. Juneau 907-586-6540 Jurek Construction Company Fairbanks 907-452-3194 Ken Wray's Printina Anchorage 907-276-4535 Lynx Alaska Electronics, Inc. Fairbanks 907-455-7281 Magic Metals Inc. Anchorage 907-561-7663 Minuteman Press Anchorage 907-561-2679 Norstar Color Anchorage 907-274-5484 Northern Printing Anchorage 907-562-6554 Paramount Cabinets Anchorage 907-563-4733 Petro Star, Inc. Anchorage 907-339-6600 Powerhouse Construction Services Inc. Fairbanks 907-488-5660 Printing Trade Company of Juneau Juneau 907-789-7636 Professional Colorgraphics Anchorage 907-561-1747 Royal Printina Anchorage 907-349-6507 S & S Welding, Inc. Anchorage 907-276-5532 Sampson Steel Company Anchorage 907-561-5626 Silverbow Juneau 907-586-4146 Stellar Desi nci s, Inc. Anchorage 907-562-4248 Stewart's Photo, Inc. Anchorage 907-272-8581 Summit Logistics, Inc. Fairbanks 907-456-3733 Sun-Air Sheet Metal, Inc. Fairbanks 907-456-8766 Super Software Inc. Homer 907-235-8500 TEC PRO Ltd. Anchorage 907-346-8240 TMC Alaska, Inc. Big Lake 907-892-3500 ~' Tesoro Alaska Petroleum Company Anchorage 907-561-5521 Thermo-Kool of Alaska Anchorage 907-563-3644 Totem Equipment & Supply, Inc. Anchorage 907-276-2858 Universal Welding & Fabrication, Inc. North Pole 907-488-2934 University Block Company Fairbanks 907-479-4960 University Redi-Mix, Inc. Fairbanks 907-479-2996 Warning Lites of Alaska, Inc. Anchorage 907-562-2124 Watermark Printers, Inc. Anchorage 907-276-6565 Williams Alaska Petroleum, Inc. Anchorage 907-273-3327