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Home My WebLink AboutCO 648 A . • Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. CO 194.6 A Order File Identifier Organizing (done) ❑ Two -sided II 1111 I III I III ❑ Rescan Needed 1 1 1111 1111 R CAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: AO Date: 61/ 7//3 /s/ VY Project Proofing 110111111111111 Maria Date: MP �� BY: O1 d 3 /s/ Scanning Preparation x 3 0 = + = TOTAL PAGES 36' (Count does not include cover sheet) fv BY: Date �3 /s/ Production Scanning I11111E11111 Stage 1 Page Count from Scanned File: 3 47 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Maria Date: W I 19/13 /s/ pi P Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. I 11111111111111 ReScanned II 1 NI BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIIII III II') III 1/17/2012 Orders File Cover Page.doc i INDEX CONSERVATION ORDER NO. 648A Susan Dionne No. 7 Development Gas Well SD Beluga Undefined Gas Pool Ninilchik Unit Kenai Peninsula Borough, Alaska 1. March 22, 2013 Hilcorp Alaska, LLC's Application to Amend CO 648 to allow for the recompletion, testing and regular production of the Susan Dionne #7 from the Undefined Beluga Pool within the Ninilchik Unit (CONFIDENTIAL EXHIBITS A and C held in secure storage) 2. Emails between Hilcorp and AOGCC regarding Ninilchik Unit, SD- Paxton PA, Susan Dionne #7, spacing question 3. April 9, 2013 Notice of Public Hearing; Affidavits of Publication, email distribution, and mailing 4. Emails between Hilcorp and AOGCC regarding Susan Dionne 7 Spacing Exception Application — Domestic Return Receipts INDEX CONSERVATION ORDER NO. 648A Susan Dionne No. 7 Development Gas Well SD Beluga Undefined Gas Pool Ninilchik Unit Kenai Peninsula Borough, Alaska • a STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, ) Docket Number: CO -13 -03 LLC for an amendment to Conservation Order ) Conservation Order No. 648A No. 648 to allow for the recompletion, testing, ) and regular production of the Susan Dionne ) Susan Dionne No. 7 No. 7 development gas well from the ) Development Gas Well Undefined Beluga Pool within 3,000 feet of, ) SD Beluga Undefined Gas Pool and within the same governmental section as, ) Ninilchik Unit wells that are, or maybe capable of, producing ) Kenai Peninsula Borough, Alaska from the same pool. ) ) May 31, 2013 IT APPEARING THAT: 1. By letter received March 26, 2013, Hilcorp Alaska, LLC (Hilcorp) requests an amendment to clarify Conservation Order No. 648 (CO 648) to allow recompletion, testing, and regular production of Beluga Formation reservoir sands within the Susan Dionne No. 7 (SD 7) development gas well within 3,000 feet of, and in the same governmental section as, wells that are, or maybe capable of, producing from the same pool. 2. On March 22, 2013, by certified mail, Hilcorp sent notice of the application to all owners, landowners, and operators of all properties within 3,000' of the SD 7 well. Hilcorp provided the Alaska Oil and Gas Conservation Commission (AOGCC) the notice, date of mailing, addresses to which the notice was sent, and proof of certified mailing. 3. A public hearing was scheduled for May 14, 2013. On April 9, 2013, the AOGCC mailed printed copies of the notice of the opportunity for public hearing to all persons on the AOGCC's mailing distribution list, published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, and electronically transmitted the notice to all persons on the AOGCC's email distribution list. On April 10, 2013, the notice was published in the ANCHORAGE DAILY NEWS. 4. No protest to the application or request for hearing was received. 5. The tentatively scheduled public hearing was vacated on May 10, 2013. 6. Because Hilcorp provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. Order 648A • • May 31,2013 Page 2 of 3 FINDINGS: 1. The SD 7 development gas well is located within the Ninilchik Unit, which lies along the eastern coastline of the Cook Inlet, Kenai Peninsula Borough, Alaska. Marathon Alaska Production LLC (Marathon) was the original owner and operator for SD 7 and the Ninilchik Unit. On February 1, 2013, Hilcorp became owner and operator of the unit and the well. 2. SD 7 is an onshore, deviated development gas well with a surface location 206' from the south line and 3,624' from the west line of Section 6, T1S, R13W, Seward Meridian (S.M.). The bottom -hole location is 409' from the south line and 877' from the east line of Section 12, T1S, R14W, S.M. 3. CO 648, approved by the AOGCC on May 24, 2011, authorizes exceptions to 20 AAC 25.055(a)(4) to allow drilling, completion, testing, and regular production of the SD 7 well. CO 648 addresses gas reservoirs within the Tyonek Formation (Tyonek). CO 648 does not mention gas reservoirs within the overlying Beluga Formation (Beluga). 4. Marathon drilled SD 7 during 2011. In September 2012, the well was completed in the SD Tyonek Undefined Gas Pool and regular gas production began. SD 7 was shut in during February 2013. 5. Hilcorp plans to recomplete SD 7 to test and regularly produce gas from Beluga reservoirs. 6. SD 7 may open Beluga reservoirs that lie within 3,000' of development gas wells Susan Dionne 5, Susan Dionne 6, Paxton 2, and Paxton 4. SD 7 may open Beluga reservoirs within the same governmental section as Susan Dionne 5 and Susan Dionne 6. 7. Hilcorp's application seeks to clarify CO 648 by specifying that the exceptions granted to 20 AAC 25.055(a)(4) apply to Tyonek and Beluga gas reservoir sands. 8. In the Ninilchik Unit area, Beluga reservoir sands are thin, laterally discontinuous, and encapsulated by impermeable claystone and siltstone layers. 9. SD 7 is located within State of Alaska lease ADL- 387372 and Cook Inlet Region, Inc. (CIRI) lease C- 061505, which are owned and operated by Hilcorp. 10. Other potentially affected owners, landowners, and operators within a 3,000' radius of the well are the State of Alaska, Department of Natural Resources (DNR); CIRI; University of Alaska; Kenai Peninsula Borough; and 14 individuals. Hilcorp sent notice of its application to these entities and individuals by certified mail on March 22, 2013 and provided the AOGCC with copies of the Certified Mail Receipts. 11. The AOGCC received no comments, objections, or protests in response to Hilcorp's application. CONCLUSIONS: 1. Recompletion of SD 7 to test and produce Beluga gas reservoirs will maximize resource recovery by developing reserves that are inaccessible to Hilcorp's other existing wells. 2. An amendment to CO 648 is needed to clearly state that the exceptions granted to 20 AAC 25.055(a)(4) apply to Tyonek and Beluga gas reservoir sands. • 411 Order 648A May 31, 2013 Page 3 of 3 3. Amendment of CO 648 is consistent with sound engineering and geoscience principles and will not result in waste. NOW THEREFORE IT IS ORDERED: Hilcorp's March 26, 2013 application for an amendment to CO 648 allowing completion, testing, and regular production of the SD 7 development gas well in Beluga and Tyonek reservoir sands is hereby approved. Hilcorp may proceed with testing and regular production from SD 7 as long as it complies with the terms of the Ninilchik Unit Agreement, applicable Alaska laws, and all other legal requirements. OIL A DONE at Anchorage, Alaska and dated May 31 013. e ` k Daniel T.- Seamount, Jr. 47. orman Commissioner ' ' . oner 41 �TioN 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), "[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. • • Singh, Angela K (DOA) From: Fisher, Samantha J (DOA) Sent: Friday, May 31, 2013 2:25 PM To: ( michael j .nelson @conocophillips.com); AKDCWelllntegrityCoordinator alaska @petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker, Bowen Roberts; Brian Havelock; caunderwood @marathonoil.com; Cliff Posey; Crandall, Krissell; D Lawrence; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David House; David Scott; David Steingreaber; Davide Simeone; ddonkel @cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Francis S. Sommer, Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington @gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Lastufka; news @radiokenai.com; Burdick, John D (DNR); Easton, John R (DNR); John Evans; John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike @kbbi.org; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson @petroleumnews.com; Nick W. Glover; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Pioneer; Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Vanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sara Leverette; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Tania Ramos; Ted Kramer; Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen @ak.net; Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers; Jason Bergerson; Jennifer Starck; jilt .a.mcleod @conocophillips.com; Jim Magill; Joe Longo; Jolie Pollet; King, Kathleen J (DNR); Laney Vasquez; Lara Coates; Lois Epstein; Louisiana Cutler Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Pollard, Susan R (LAW); Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke; Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); 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); Hunt, Jennifer L (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); McIver, Bren (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); Singh, Angela K (DOA); Turkington, Jeff A (DOA); Wallace, Chris D (DOA) Subject: co648a (Ninilchik Unit) Attachments: co648a.pdf 1 • • Samantha Fisher Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 (907) 7934223 (phone) (907) 276 -7542 (fax) 2 Easy Peet® Labels i • Ila> Bend along tine to Q AVERY► 596OT"" Use Avery® Template 5160 I feed Paper 1 "••••• expose Pop - up Edge"' j 1 David W. Duffy Hilcorp Alaska, LLC Landman Post Office Box 244027 Anchorage, AK 99524 -4027 k ■ letiquettes fables a peter i Sens • de Replies a la hachure afro del www avery.com Utilisez le gabarit AVERY 5160® j chargement reveler le rebord Pop -upTM j 1 -8O0-G0 -AVERY X25« I�eEE® Walae!� Ben along li ne 40 I g _- , ' _�_ _�'. USG ii 'j ial t fCi;G 6 Paper ' — — exl>OSe Pop -up I'dgC'' j David McCaleb Penny Vadla INS Energy Group George Vaught, Jr. 399 W. Riverview Ave. GEPS Post Office Box 13557 Soldotna, AK 99669 -7714 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton President 6900 Arctic Blvd. 40818` St. P.O. Box 1655 Golden, CO 80401 -2433 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94` Ct. Post Office Box 58055 Post Office Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department Post Office Box 60868 3201 Westmar Cir. Post Office Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 l Jack Hakkila Darwin Waldsmith James Gibbs Post Office Box 190083 Post Office Box 39309 - Post Office Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 . c4 ., ,.. 4 faritpc h npler ! Realise a la hachure afln de 1 www.avery.com l i 44 • • Davies, Stephen F (DOA) From: David Duffy [dduffy @hilcorp.com] Sent: Monday, May 13, 2013 11:25 AM To: Davies, Stephen F (DOA) Subject: RE: Susan Dionne 7 Spacing Exception Application - Domestic Return Receipts Attachments: Document.pdf Steve, See attached copies of the certified receipts. We sent this mailing out by certified mail, but not return receipt. 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 Cell: 907 301 -2629 Email: dduffy @hiicorp.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.daviesCaalaska.gov] Sent: Friday, May 10, 2013 12:02 PM To: David Duffy Subject: Susan Dionne 7 Spacing Exception Application - Domestic Return Receipts David, Could Hilcorp please provide photocopies of the Domestic Return Receipts from the certified mailing of the Application for Spacing Exception for the Susan Dionne 7 well? Thanks, Steve Davies AOGCC 907 - 793 -1224 1 ■IMIMMIIMW .:..-r . iza r-- N • CD LD M D . Ca ■ ` C.:1 CI ....o ' CI u— Charles E. Gates ' Boyd Daniel Leman Er- CI P 11675 Sterling Hwy 9215 Deercross Pkwy Apt 81 . . . . . En r , Ninilchik, AK 99639 c r : s- 3 Cincinnati, OH 45236 71J09 09610 DIRO 3778 4334 711119 rriLl_i 1.11.4.1.3 3778 435!_: ' ■ , 411 Ze / i 1) III ru i I m D Ez ED D Ms. Cathy Foerster, Chairman tr. Alaska 011 and Gas Conservation Commission 2 , 333 W. 7 Avenue, Suite 100 r.-- Anchoraee. Alaska 99501 l'T,J.: imp,' '3778 40.1•1 y yr rn r.. r° • C D Leonard & Juanita Sabrowski D University of Alaska 3430 Chippewa Ct , , UA Facilities & Land Management En ; West Linn, OR 97068 . 1815 Bragaw Street, Suite 101 r'- Anchorage, AK 99508 . 711,.H '.,;,,. !il.tt l: 37?& 431'.1 70!1 [19i:, .::`ii: 778 1 1297 wu hi • 4 r. m r 1 // r / / • a r,t i f r .. .. ... ..53 Kenai Peninsula Borough c3 CD 144 N Binkiey St. >?~ Laura Lee Tiernan Life Estate (W. Lee `.. Soldotna, AK 99669 .-- .- McKinley, remainderman) r *- 4675 Cascade Circle ?009 1,960 Gt 1 0 ti a 37 ` '� r Anc:hnrarae. AK 99502 l a2, 7009 19ku c OLN 3778 4341 z . " t l , / . C1 ED CD ; 1 • f % _. . . f r i r e? State of Alaska Carol A. Wilson ri - Dept. of Natural Resources • 168 Hidden Ridge Court =I Division of Coil and Gas Cold Spring, KY 41076 r- ; 550 West 7th Avenue, Suite 1160 , . -. ?[!l.a 1391,lj t.C.[l: 37 71.'. 4 51,8 -.- .. e ; " ... 11.-1 T 0 <3 r� i , r {YI r:7 e. El ' D r... Nancy McKinley / � Cook Inlet Region, Inc. Kent rr ca CIRI Land and Resources Dep . Jane Walsh D 2525 C Street, Suite 500 Anchorage, AK ! 1065 Scenic Drive 99503 ?1T9 096,0 0000 D77 42i40 7009 0960 00 0Cl 3 4525 if co ! , 1- r-- - : . r- /10 r . , rn / 0 3.:: CI , . ; : „ , M ' • 0 C3 .; - ._13 tr 9'. 0 c " Robert J. Stoddard , Patricia Webster I r PO Box 1 I S . 887 Fawn Hill Drive r: C Edgewood, KY 41017 r-- Findlay, OH 45840 r - " .. . r- 1 . . .. . ?Li1 tirilli 01100 3778 449r , 701,39 U9LL ODOI) 9778 44[]:::`, . . , . 0 .z.- , .1- . . • N /(:) P1 /7 MI ,... f i 0 . , M M ' - I/ M i tn James R. Sabrowski , George A. Gates . tr rr m , 2730 Kingfisher Drive , , co 308 Village Lane cj Anchorage, AK 99502 Greensboro, NC 27409 7009 1391,d1 L '1778 4 -s,lir-# i 7Uffiri f.,1'=,:,11 00011 3778 4488 . ,., ca s i (- } m .. C D = :: : • i:73 .1. Katherine Lunne C' IT" y Laura Lee Tiemadn Life Estate (W. Lee r:. ... 2530 Fairmount Ave. McKinley, remainderman) Dayton, OH 45419 f ' } 4675 Cascade Circle N r- ; Anchorage, AK 99502 . ___... 70I''9 0961 0000 3778 45I0 i, 009 1 960 norlo 3778 532 M • rs- m 1 - r cl 0 -11 , ... . . . Jeanne Potter i ' �`� s PO Box 1 D Kathlen McConnelr Findlay, OH 45840 a PQ Box 1 r Findlay, OH 45840 V- 70C'9 0960 0000 3778 455L 7009 09:AI 0000 3778 14549...,, 4t:3 STATE OF ALASKA • NOTICE TO PUBLISHER ® ADVERTISING ORDER NO. ADVERTISING INVOICE M UST BE IN TRIPLICATE WI N G ADVERTI ORDER ., CERTIFIED /L O- On- 3_14038 AFFI OF PUBLICATION IC (PART 2 SHO OF T HIS FORM) W ITH ATTACHE COPY OF /1 G ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BMA 3:177. . F AOGCC AGENCY CONTACT DATE OF A.O. April 9, 2013 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (907) 793 —1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News April 10, 2013 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS L j ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEE ATTACHED SEND IN c wI.1 " ' , ,! K t AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF '� . ` '`., `:' Anchorage, AK 99501 2 PAGES ALL PAGES $ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR FIST JO 1 13 02140100 73451 2 REQUISITION BY: ' DIVISION APPROVAL )7) —/ 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: Docket # CO- 13 -03. The application of Hilcorp Alaska, LLC for an amendment to Conservation Order No. 648 to allow recompletion, testing, and regular production of a gas well within the same governmental section as, and within 3,000 feet of, wells that are, or may be capable of, producing from the same pool. Hilcorp Alaska, LLC, by a letter received March 26, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) amend Conservation Order No. 648 to allow recompletion, testing, and regular production of the Susan Dionne No. 7 development gas well within the same governmental section as, and within 3,000 feet of, wells that are, or maybe capable of, producing from the same pool. Susan Dionne No. 7 Surface Location: 206' from the south line and 3,624' from the west line of Section 6, T1S, R13W, Seward Meridian (S.M.) Bottom -Hole Location: 409' from the south line and 877' from the east line of Section 12, T1S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for May 14, 2013, 2013 at 2:00 p.m. at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on April 25, 2013. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793 -1221 after May 6, 2013. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on May 13, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the May 14, 2013 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793 -1221, no later than May 10, 2013. Cathy P. oerster Chair, Commissioner STOF0330 #201983 $225.76 AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he /she is Notice of Public Hearing a representative of the STATE OF ALASKA Anchorage Daily News, a Alaska Oil and Gas Conservation Commission daily newspaper. That said Re: Docket # CO- 13 -03. The application of Hilcorp newspaper has been approved Alaska, LLC for an amendment to Conservation Order No. 648 to allow recompletion, testing, and by the Third Judicial Court, regular production of a gas well within the same Anchorage, Alaska, and it now governmental section as, and within 3,000 feet Of wells that are, or may be capable of, producing f and has been published in the j from the same pool. English language continually as i Hilcorp Alaska, LLC,by a letter received March 26, 2013, requests the Alaska Oil and Gas Conservation .I daily newspaper in Anchorage Commission ( AOGCC) amend Conservation Order Y news a P P a , No. 648 to allowrecompletion, testing, and regular Alaska, and it is now and during production of the Susan Dionne No. 7development gas well within the same governmental section as, all said time was printed in an and of, 3,000 oducing feet m wells that pool. or maybe. office maintained at the aforesaid Susan Dionne No. 7 place of publication of said Surface Location:206' from the southline and 3,624' newspaper. That the annexed is from the westline of Section 6, T1S, R13W, Seward a copy of an advertisement as it Meridian (S.M.) Bottom -Hole Location:409' from the south line and was published in regular issues 877' from the east line of Section 12, T1S, R14W,: S.M. (and not in supplemental form) hearing on this application for May 14, 2013, 2013 at . of said On. newspaper 2:00 p.m. at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than April 10, 2013 4:30 p.m. on April 25, 2013. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order and that such newspaper was without a hearing. To learn if the AOGCC will hold • the hearing, call 793 -1221 after May 6, 2013. regularly distributed to its In addition, written comments regarding this subscribers during all of said application may be submitted to the Alaska oil and. Gas Conservation Commission, at 333 West 7th period. That the full amount of Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than4:30 p.m. the fee charged for the foregoing on May 13, 2013, except that, if a hearing held,. comments must be received no later than the publication is not in excess of conclusion of the May 14, 2013 hearing. the rate ch• :_ed private ind viduals. . If,because of a disability, special accommodations s may be needed to comment or attend the hearing, '� contact the AOGCC's Special Assistant, Jody - Signer .1 ' s �� I 1,k, Colombie, at 793 -1221, no later than May 10, 2013. , Cathy P. Foerster, Subscribed a nd sworn to efore Chair, Cbmmissioner IL- AO- 02 -3 -14 -038_ . me this f v day of v Published: April 10, 2013 20 : '✓ ,5„,t1,1,41.6,nesiyii . „me,. Notary Public in and for ` ;.� The State of Alaska. e •`,,i► ' Third Division *....0.617;....,.......i. ; fl � Anchorage, Alaska �+ ' A MY COMMISSION E PIIt S ; x ti `- � P l r ll` J i + 0, '; y � c > ,. o ff /N11119 0W • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING AVERTI DSING ORDER NO., CERTIFIED /t, O -02- 3_14038 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /1 G ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEBBDg, 1 I F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue, Suite 100 Jody Colombie February 19. 2013 o Anchorage. AK 99501 PHONE PCN (907) 793 -1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News April 10, 2013 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS g ENTIRETY ON THE DATES SHOWN. 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 sworn, according to law, says that he /she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2013, and thereafter for consecutive days, the last publication appearing on the day of , 2013, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2013, Notary public for state of My commission expires • • Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, April 09, 2013 1:25 PM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); 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); Bender, Makana K (DOA); 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 D (DOA); (michael j .nelson @conocophillips.com); AKDCWelllntegrityCoordinator, alaska @petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Brian Havelock; Burdick, John D (DNR); caunderwood @marathonoil.com; 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; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer; Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington @gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim Winegarner, Joe Lastufka; news @radiokenai.com; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Louisiana Cutler Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike@kbblorg; Mike Morgan; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson @petroleumnews.com; Nick W. Glover; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Ted Kramer, Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger, trmjrl; Vicki Irwin; Walter Featherly; Williams, Theresa; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Dale Hoffman; David Lenig; David Martin; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jilt .a.mcleod @conocophillips.com; Jim Magill; Joe Longo; King, Kathleen J (DNR); Laney Vazquez; Lara Coates; Lois Epstein; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Pollard, Susan R (LAW); Pollet, Jolie; Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke Subject: Public Notices Attachments: Susan Dionne 7.pdf; Cosmopolitian.pdf 1 • • JodyJ. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue Anchorage, Alaska 99501 (907) 793 -1221 (907) 276 -7542 2 Easy Peel® Labels i ® ® Bend along line to 0 AVERY® 5960TM Use Avery® Template 5160® 1 • eed Paper expose Pop -up EdgeTm David W. Duffy Landman Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524 -4027 f= tiquettes faciles peter ; Repliez a la hachure afin de ; www.avery.com . +:I; . I . ..nti,. ;+ AvIDV® R14,10 1 Sens de �.__,__ _MC ! 1_Rnn_Gn_AVFRV Easy Peel® Labels I L I ""T Bend aloe r 1,1=_' -�'� , o ,p ® eed Paper r expose Pop - pup line to EdgeTM J L , ` ` n ® �� "h Use Avery® R TempEate 5160 R j David McCaleb Penny Vadla IHS Energy Group George Vaught, Jr. 399 W. Riverview Ave. GEPS Post Office Box 13557 Soldotna, AK 99669 -7714 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates H odg p y Halliburton President 40818` St. 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. Post Office Box 58055 Post Office Box 93330 Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Planning Department Richard Wagner Gordon Severson Post Office Box 69 Post Office Box 60868 3201 Westmar Cir. Barrow, AK 99723 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs Post Office Box 190083 Post Office Box 39309 Post Office Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 Vka■ Etiquettes faciles a peter ^ ; co del Repliez a la hachure afin de ; www.avery.com #2 • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, March 22, 2013 2:25 PM To: 'David Duffy' Cc: Larry Greenstein; David Buthman; Kevin Tabler Subject: RE: Ninilchik Unit, SD- Paxton PA, Susan Dionne #7, spacing question David, Conservation Order No. 648 (CO 648), which allows drilling, testing, completion and regular production of the Susan Dionne 7 gas development well, specifies only the Tyonek Formation T3, T006 and T138 gas reservoirs. Recompletion in the Beluga Formation will require amendment of CO 648. Please let me know if you have any questions. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907 -793 -1224 Fax: 907 - 276 -7542 From: David Duffy [mailto:dduffy©ahilcorp.com] Sent: Friday, March 15, 2013 12:33 PM To: Davies, Stephen F (DOA) Cc: Larry Greenstein; David Buthman; Kevin Tabler Subject: Ninilchik Unit, SD- Paxton PA, Susan Dionne #7, spacing question Steve - After Hilcorp received approval to reperforate Ninilchik Well Susan Dionne #7 (SD -7), we took a closer look at CO 648. We're concerned that the existing spacing exemption was limited to the Tyonek and may not cover our plans to recomplete this well in the Beluga. As a result, we've prepared an application to amend CO 648 to allow for the proposed perforations. The formal application to AOGCC, and certified notice to all affected owners and landowners will be sent on Monday. Should you determine that no action is required, Hilcorp would be pleased to suspend or withdraw the application. If you have any technical questions, please do not hesitate to contact David Buthman at 777 -8375. Best 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 CeII: 907 301 -2629 Email: dduffyPhilcorp.com 1 41 • • Post Office Box 244027 Anchorage, AK 99524 -4027 A i{ ;1,' • 3800 Centerpoint Drive Hilcorp Alaska, LLC Suite 100 Anchorage, AK 99503 Phone: 907 /777 -8300 March 22, 2013 Fax: 907/777-8301 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application to Amend Conservation Order 648 to allow for the recompletion, testing and regular production of the Susan Dionne #7 from the Undefined Beluga Pool within the Ninilchik Unit Dear Commissioner Foerster, On May 24, 2011, the Alaska Oil and Gas Conservation Commission ( "AOGCC ") issued an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(4) to allow the drilling, completion, testing and regulatory production of Susan Dionne #7 (herein after, "SD -7" or "Dionne 7 ") within 3000 feet of wells producing or capable of producing from the Tyonek Formation. Former Unit Operator, Marathon Oil Company ( "MOC "), drilled and completed SD -7 in 2011. Numerous intervals were perforated in the Tyonek Formation between 8,314 — 11,605' (MD) and subsequent testing indicated no commercial gas production.' MOC obtained only gamma ray and resistivity Togs over the open hole section from surface to 7000' total depth, so accurate pay definition in the Beluga Formation above 7000' was not possible. As successor Unit Operator, Hilcorp has reviewed SD -7's well log data and determined that the shallow Beluga Formation sands may have commercial gas potential. On February 2, 2013, Hilcorp submitted an Application for Sundry Approval (Form 10- 403) to isolate the Tyonek perforations with a cemented bridge plug, cut and pull the existing tubing, then run new tubing and packer completion to test the shallow Beluga interval. AOGCC subsequently approved Hilcorp's application on February 13, 2013. Upon closer review, Hilcorp is now concerned that the spacing exception granted under Conservation Order 648 may have been limited to SD -7's original completion within 1 To date, all reported production of SD -7 has been from the Susan Dionne- Paxton Participating Area, Tyonek Undefined Pool. (Field Pool Code 562560). 2 Hilcorp intends to run cased hole nuclear -type (pulsed neutron) logs in order to better identify gas pay and to choose actual perforations within this interval. • . Ninilchik Unit Application to Amend CO 648 March 22, 2013 Page 2 of 8 only the Tyonek Formation. Therefore, to the extent required, Hilcorp requests that the Commission amend Conservation Order No. 648 to permit the re- completion, testing, and regular production of SD -7 from the Beluga Formation. To date, no special Pool Rules have been established within the Ninilchik Unit, and all gas produced within the Susan Dionne - Paxton Participating Area has been reported as either "SD Tyonek Undefined" (Field Pool Code 562560) or "SD Beluga Undefined" (Field Pool Code 562550). Therefore, statewide spacing regulation, 20 AAC 25.055(a)(4) is controlling. This regulation provides: If gas has been discovered, the drilling unit of the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. The surface and bottom -hole location of SD -7 are described in Conservation Order 648 as 3624' FWL, 206' FSL of Section 6, R13W, Seward Meridian (S.M.), and 877' FEL and 409' FSL of Section 12, T1S, R14W, SW, respectively. The proposed perforation interval is unchanged from that described in the approved Application for Sundry Approval and falls within Section 7, T1S, R 13W and Section 12, T1S, R14 W. The location of SD -7 and its relationship to adjoining properties and wells within 3000' is depicted in Exhibit A. As demonstrated by this plat, other wells with perforations at the Beluga -135 level inside the 3000' radius include: Paxton 2, Paxton 4, Dionne 5 and Dionne 6. Based on geological and engineering data available to Hilcorp, it is apparent that the Beluga sandstones within the 3000' radius of SD -7 are particularly discontinuous and unpredictable, that they drain small areas (^'40 to 60 acres), and that the proposed development of SD -7 is necessary to maximize recovery of gas from the Beluga Formation. See Exhibits B and C (confidential). As demonstrated above, the correlative rights of all affected owners, landowners and operators will be protected by amendment to Conservation Order 648 to allow SD -7 to be completed within the Beluga Formation. If the proposed well completion is successful, and produces gas from the Beluga Formation in commercial quantities, Hilcorp anticipates expanding the existing Susan Dionne Paxton Participating Area and submitting proposed Pool Rules to formally define both the Tyonek and Beluga Formations. • • Ninilchik Unit Application to Amend CO 648 March 22, 2013 Page 3 of 8 Hilcorp, as Operator, owns a 100% working interest in the Ninilchik Unit. At the date of this mailing, a copy of this proposed amendment was sent by certified mail to the all affected landowners. Also enclosed is an affidavit stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true. Should AOGCC find that Conservation order 648 allows for the completion of SD -7 in the Beluga Formation, no further action is required. However, should AOGCC find that Conservation Order 648 was limited to only the Tyonek Formation, then Hilcorp respectfully requests the Commission amend said order to allow for completion of the SD -7 in the Beluga Formation. If you have any questions regarding this request, please contact Mr. David Buthman, Senior Geologist, at 777 -8395, or you may contact the undersigned at 777 -8414. Sincere) David W. Duffy, Landman Hilcorp Alaska, LLC Enclosures: Exhibit A, Exhibit B, Exhibit C, Exhibit D (confidential submittal to AOGCC), Affidavit, Copy of Certified Mail Receipts CC: Affected Owners and Landowners: State of Alaska Robert J. Stoddard Dept. of Natural Resources PO Box 1 Division of Oil and Gas Findlay, OH 45840 550 West 7th Avenue, Suite 1100 Anchorage, AK 99501 -3560 Cook Inlet Region, Inc. Jeanne Potter CIRI Land and Resources Dept. PO Box 1 2525 C Street, Suite 500 Findlay, OH 45840 Anchorage, AK 99503 • • Ninilchik Unit Application to Amend CO 648 March 22, 2013 Page 4 of 8 University of Alaska Kathlen McConnell UA Facilities & Land Management PO Box 1 1815 Bragaw Street, Suite 101 Findlay, OH 45840 Anchorage, AK 99508 James R. Sabrowski Laura Lee Tieman Life Estate (W. Lee 2730 Kingfisher Drive McKinley, remainderman) Anchorage, AK 99502 4675 Cascade Circle Anchorage, AK 99502 Leonard & Juanita Sabrowski Nancy McKinley, Sally Kent and Jane Walsh 3430 Chippewa Ct 1065 Scenic Drive West Linn, OR 97068 Knoxville, TN 37919 Kenai Peninsula Borough Carol A. Wilson 144 N Binkley St. 168 Hidden Ridge Court Soldotna, AK 99669 Cold Spring, KY 41076 Boyd Daniel Leman Katherine Lunne 11675 Sterling Hwy 2530 Fairmount Ave. Ninilchik, AK 99639 Dayton, OH 45419 Charles E. Gates Patricia Webster 9215 Deercross Pkwy Apt B1 887 Fawn Hill Drive Cincinnati, OH 45236 Edgewood, KY 41017 George A. Gates 308 Village Lane Greensboro, NC 27409 • • CONFIDENTIAL EXHIBIT A Held in Secure Storage • • Ninilchik Unit Application to Amend CO 648 March 22, 2013 Page 6 of 8 EXHIBIT B: BOTH KENAI • WUTU KBNAI acme DIDMMQ I nN�Nie a orr dON11B • PA%747N f I O • 4 TON j I ' N 1 • s f rowfNNe 1 PAXPON t ro� P.M. 1 Drainage radius of 3000' from the nick -point (the red subsea values) of the Beluga 135 zone, with location of Cross Section A -A'. • • CONFIDENTIAL EXHIBIT C Held in Secure Storage • • Ninilchik Unit Application to Amend CO 648 March 22, 2013 Page 8 of 8 VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA NINILCHIK UNIT, SUSAN DIONNE - PAXTON PARTICIPATING AREA Well SD -7 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's Application For Sundry Approval submitted February 4, 2013; AOGCC subsequent approval of well work associated with Well SD -7 within the Ninilchik Unit, Susan Dionne - Paxton Participating Area; and Conservation Order 648. I assert all facts outlined in the above - referenced application for amendment of Conservation Order 648 are true. I have reviewed the plats attached herein as Exhibits A and B, and each correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this 2 day of March 2013. David W. Duffy, Landma Hilcorp Alaska, LLC STATE OF ALAKSA ) ss THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this, t day of March, 2013 STATE OF ALASKA 4 .. - Ode-- NOTARY PUBLIC -x-44 N ARY PUBLIC IN AND FOR Zelma M. Clarke ` THE STATE OF ALSKA Gomnbslon ., .. Nov1, 2016 My Commission expires: /I /A () /I /�