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Home My WebLink About212-112 • • el(EEK 44-z- (}rf) Ztzt zo Regg, James B (DOA) From: Regg,James B (DOA) Sent: Thursday, February 23, 2017 1:11 PM 1 To: Link, Liz M (DOA) Cc: Colombie,Jody J (DOA) Subject: RE: Emailing - Pics of KEEX02 P&A Well Cap.pdf Couple observations: 1) The marker plate does not comply with AOGCC requirements (20 AAC 25.120);since it does have the PTD#the other required info could be pulled from our database and paper well files if ever needed. 2) They did not notify us for opportunity to perform location clearance inspection. My recommendation is to accept the photos for documenting the location clearance; might consider reminding them of our regulatory requirements although they are not an active operator so it would probably have no impact. Jim Regg Supervisor, Inspections AOGCC SCANNED AUG 0 9 2017, 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Jim Regg at 907- 793-1236 or jim.regg@alaska.gov. From: Colombie,Jody 1 (DOA) Sent:Thursday, February 23, 2017 9:02 AM To: Regg,James B (DOA) <jim.regg@alaska.gov>; Link, Liz M (DOA)<liz.link@alaska.gov> Subject: FW: Emailing-Pics of KEEX02 P&A Well Cap.pdf See attached. From:Tony Lagera [mailto:Tony.Lagera@lincenergyoperations.com] Sent:Tuesday, February 21, 2017 5:39 PM To: Colombie,Jody J (DOA) <iody.colombie@alaska.gov> Subject: FW: Emailing-Pics of KEEX02 P&A Well Cap.pdf KEEX02. Tony Lagera, CPL Land Manager Linc Energy Operations, Inc. Debtor in Possession P +1 281 726 9139 I E tong.lagera@lincenergyoperations.com 1 • • r 23501 Cinco Ranch Blvd STE H 120-915 Katy TX 77494 United States Disclaimer Notice:The message and attachment(s)contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient,you must not read; print, retain, copy, distribute,forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergyoperations.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses.The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s)which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Shawn Trasky [mailto:shawn@malamuteenergy.com] Sent: Monday, February 20, 2017 5:43 PM To:Tony Lagera <Tony.Lagera@lincenergyoperations.com> Subject: Fwd: Emailing- Pics of KEEX02 P&A Well Cap.pdf Begin forwarded message: From: "Castle Mountain Group" <cmgi@mtaonline.net> Date: February 20, 2017 at 2:08:23 PM AKST To: "'Shawn Trasky"' <shawn(c)malamuteenergy.com> Subject: Emailing- Pics of KEEX02 P&A Well Cap.pdf Tada... LEA#1 next... 2 • //‘2 • 411 unc cm.., MAY 191017. Memorandum EDERGY TO: Cord Feige, Badly Kleven CC: Bob Schlosser, Nick Scales, Jerry Otto, Marty Rutherford DATE: 8 April 2014 FROM: Mike Hagen SUBJECT: KEEX02 Reclamation Summary Subsequent to Coal Exploration Permit E-1401 issued to Linc Energy on October 23, 2011, a reclamation effort at the KEEX02 drill site was conducted in June 2013. KEEX02 is located in a remote area of Alaska, approximately 16 air miles west of Beluga and is only accessible by helicopter. Drilling activities at KEEX02 began in September 2012 and were completed in December 2012. However, due to frozen ground, snow cover, and weather conditions in December of 2012,the site reclamation was deferred until after spring-thaw,which occurred in late May of 2013. Reclamation objectives of KEEX02 consisted of the following: 1. Removal of all unnecessary equipment from the site 2. Restoring the drillsite to conditions equal to or better than the pre-exploration condition 3. Returning the artificial flat areas and excavated areas to the original contour 4. Redistribution of stored topsoil on the disturbed areas to assure successful revegetation 5. Re-seeding of disturbed areas Prior to commencing reclamation activities a considerable amount of demobilization was required. The fly base, sub-structure, tundra mats and various drilling materials, all needed to be transported from the site to either the laydown area in Beluga or the TYEX02 drill site. Approximately 60 sling loads were transported from KEEX02 prior to reclamation. A mini-excavator was transported to the site to expedite the earthwork and reclamation effort. The field crew included Linc Energy (2), Fairweather (1), Girdwood Contracting (2), Prism Helicopters (1), Northern Pioneer Helicopters (1), Jayhawk Aviation (1) and one local hire. Camp support and services were provided by Three Mile Creek services and all operations were based out of Cottonwood camp in Beluga. The crews worked 12-hour shifts from 0600 to 1800. After the daily safety meeting, the crews departed for KEEX02 and TYEX02 at 0615.A brief summary of daily activities is provided below: • 17 June 2013: Sunny weather with temperatures in the 70s. Arrival of field crew including LE (2), GCC (2), FW (1), and Prism (1) with a B2 Astar. Upon arrival at Cottonwood Camp, a lengthy safety meeting was conducted including sling operations discussions and 1 Our reference: Linc Memo-KEEX02 Reclamation SummaryKEEX02 Reclamation Summary_8-Apr-14 • • identification of helicopter flight paths. Work begins at KEEX02 with the dismantling of the fly base. • 18 June 2013: Sunny weather with temperatures in the mid-80s.A three-man crew at KEEX02 sending sling loads and a two-man crew at TYEX02 receiving sling loads. NPH delivers the mini-excavator at KEEX02. All other sling operations conducted with Astar B2. A total of 10 sling loads were transported. • 19 June 2013: Overcast weather with high winds developing by noon and temperatures in the 60s. Same crews at KEEX02 and TYEX02 with the Astar B2 and NPH Huey both transporting loads. High winds suspended Astar sling ops at 1400 and Huey sling ops at 1515. A total of 23 sling loads were transported. • 20 June 2013: Sunny weather with temperatures in the mid-80s. R-44 and pilot arrive onsite. Same crews at KEEX02 and TYEX02 with the R-44 and Astar B2 transporting loads. A total of 22 sling loads were transported. • 21 June 2013: Overcast weather with temps in the 60s. The crews complete sling loads by late morning. The Astar was released and departs at noon with Bob on board. Remaining helicopter support will be performed exclusively with R-44. A total of 9 sling loads were transported. Reclamation effort begins after noon. • 22 June 2013: Overcast with temps in the 70s. Three-man crew working the KEEX02 reclamation effort. GCC spends six hours performing maintenance on the mini-excavator, which emits a thick white smoke and has dirty oil, debris in fuel line/filter, and hydraulics are not fully operational. Unable to contact vendor to solve issue. Reclamation continues as crews backfill, rake and clear debris at site. • 23 June 2013: Overcast with temps in the 60s. Three-man crew working reclamation at KEEX02. GCC spends three hours performing maintenance on the Mini-excavator.The mini-ex still emits heavy white smoke through exhaust pipe. Backfill of upper trench, upper sump and partial completion of main sump. • 24 June 2013: Sunny with temps in the 70s. Three-man crew working reclamation at KEEX02 and mini-ex still not operating at 100%. Contact United Rental and schedule maintenance man service the min-ex. GCC stops operating mini-ex at 1500 due to heavy smoke causing nausea to the operator. • 25 June 2013: Sunny with temps in the 70s. Three-man crew working reclamation at KEEX02. UR serviceman arrives on early Rediske flight without diagnostic equipment. Mini-ex is serviced;only fluids and filters are changed. UR serviceman leaves BLG at 1400.GCC unable to continue work with mini-ex due to heavy smoke. Mini-ex still not fully operational and UR is contacted. UR will deliver fully operational excavator to site tomorrow at their expense. All trees cleared, upper portion of site is graded, raked and seeded. Path to water take is also raked and seeded. • 26 June 2013: Sunny with temps in the 80s.Three-man crew working reclamation at KEEX02. Replacement mini-ex arrives at 0845 and backfill resumes. Reclamation continues with most of the site now levelled and the main sump completely backfilled. • 27 June 2013: Overcast with temps in the 50s. Three-man crew working reclamation at KEEX02, however heavy fog prevents site access until 1400. GCC replaces broken hydraulic line on mini-ex and continues earthwork. Most of site is graded, raked and seeded by the end of the day. •Page 2 • S • 28 June 2013: Overcast with temps in the 60s. Move start time up by one hour (0530) to access site before fog sets in. Crews delivered to site just as fog settles stranding pilot with crew. At 1600 the site reclamation is complete. All crews removed from KEEX02. The mini- excavator is rigged for sling load but remains onsite. Crews depart BLG for ANC at 1730. Photographs documenting the final site conditions are presented below: e ,g$ 7. .} ". RK. ^ a t '"w w r• � r , k '" . A n EP Figure 1 Viewing north above KEEX02 site. • Page 3 • • d dna " ° "—, ." 'it € �. i — _, 4 '. *4 ' 44 4. zr t a. Figure 2 Viewing west above KEEX02 site. d ,d;.a3 i[', ` 1 ,' B x ,+ mow4 p. -.. tom'. 40 ''. •• .. : .. .. . Figure 3 Viewing east above the KEEX02 water take site. •Page 4 • • / o O • N co O w I '+' 0 oO N ON as N • °CO m ui_ w wO• Z C • C • N I c N .m ) CO NUNO _ CO CO ,- N CO V N N W d W a I 0 W v U P. N . T 0 m X X X X N N W O1 W 0 H . 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LL £ t0 E Z 2 0 O CO W O C 11 41 O U �_ Z W c 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ea E O Q 0 J -62E0o '' 0 O 1— m - 0 0 0 0 00 0 0 0 0 0 0 0 0 a m L c 3 3cg w w w w w w w w w W LU LU W W LU i 0 0 o o a o Q Q Q co z z_ z I o cooo Z oN- N N co 5 .2 L T C N 0. co a0i IT Q F, ZE o� z s $ U a m 11.2 N a 1 o0 U cj �.U N Q (t$ 10 Z a N c t j C N CO = z z U)• w E a 5 _ T. o co E E 0G6 v in z° N 0 05 0 O W a2 0 ti a a., n CO CO rn w w CL ° U E y E co a03 w to z a m Z M �A ILL E W N co W 0 N N N N N O7 CD 1 V Z h E J E Z • a o rn m cm co vi m cn o r cm 'N N 0 o co C RJ Q (I) a c w 1 Q E O. p Li) c U U ii cO NII O N ow J N V r> U w v J } Q I E N N Q „Frio 11 Eo 0 I' oa a a o) o N N O GM N �'�. a3 C r III 5 I _41 % W N �c m E o Z E w� co .. as _ _ w Cl) XQ N N N V c cO Q Q W c W Y rl Q c a . m O l £• U 0 2 0 coZ d N b 1 N N 1 ,o• 0OC ' \ / o a £ C � �o N O o m ~ N W E a p ami a a c c UI N O d - - a) o _ 0 a>i G co co U U U O 0 O a) c ami H e Z c m 0 w 0 o <0 a Q o o 20 < o 0 c I c I Ws U '5 . .7) a) a, 0 I O a -0'o o 1- n m 0 E a UO LL p d a d 3 Z 0 a` 0 0 0 0 0 �l EIIERGY June 17th, 2015 Patricia Bettis Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Re: Submittal of KEEX-02 chip samples Dear Ms. Bettis, Accompanying this letter are the drilling chip samples and core sample chips from the Linc Energy Operation KEEX-02 well (PTD 2121120). The drill chip samples were collected in 10-foot increments during the time of drilling. The core chip samples were collected on one foot intervals as required by AOGCC. Should the AOGCC require any further information please contact me by phone at 307.439.9570 or by email brian.deurloo@lincenergy.com. Sincerely, -� � RECEIVED Brian Deurloo General Manager Clean Energy USA JUN 17 2++015++ Linc Energy Operations, Inc. A�GVV PO Box 789 Glenrock, WY 82637 LINC ENERGY LTD 32 Edward Street GPO Box 1315, P +61 7 3229 0800 ABN 60 076 157 045 Brisbane, ULD,Australia,4000 Brisbane, OLD,Australia,4001 F +61 7 3229 6800 www.lincenergy.com • I CANRIG Samples from: Keex -2 LINC ENERGY API No. 50-283-20166-00-00 Kenai Peninsula Borough,Alaska SAMPLE MANIFEST Set#1: Core Chip Samples 6-12-2015 From: Canrig Drilling Technology Ltd. 301 E. 92nd Ave. Anchorage AK 99515 To: LINC Energy Attn: Shawn Trasky (979) 907-375-2615 3000 "C" Street, Suite# 103 Anchorage, AK 99503 Set#1: Shipment consists of 1 box total: [1] (50) Core Chip Samples on 1 ft intervals, 1519' - 1646.5' This has been shipped as -box. -p- 1/ '761c i S `' r —I) 1"'C'L u r7 G s F " s4.,.j i t( Received by : C-----7,,-„-;)--1-___:: Date: 6 / 7 /S RECEIVED JUN 17 2015 • i 0 sur, EnERGY Keex-2 1.1 Sampling Program/Sample Dispatch Se_t _ Type/Purpose Frequency Interval Dispatched to LINC Energy 3000 "C" Street, Suite# 103 A Core Chips 1 ft 1519'— 1646.5' Anchorage, AK 99503 Delivered to Shawn Trasky Linc Energy AOGCC-Alaska Oil and Gas 1 Box Core Chips (See Above) Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Sample frequency was limited to amount of recovered core over entire interval. Set A: Box 1: (50) Core Chip Samples on 1ft intervals, 1519'— 1646.5' Sample Depth Core Run Note Sample Depth Core Run Note 1 1519'-1528.5' 1 NR 26 1606' 10 2 1529' 1 27 1607' 10 3 1529'-1538' 2 NR 28 1608' 10 4 1539' 3 29 1609' 10 5 1540' 4 30 1610' 10 6 1541' 4 31 1610.7' (1611') 10 7 1542' 4 32 1610.7'-1614' 10 NR 8 1543' 4 33 1615' 11 9 1544' 5 34 1616' 11 10 1545' 5 35 1617' 11 11 1546' 5 36 1618' 11 12 1547' 5 37 1619' 11 13 1547.9' (1548') 5 _ 38 1620' 11 14 1549' 5 NR 39 1621' 11 15 1550' 6 40 1621' 11 16 1551' 6 41 1622' 11 17 1551.5' (1552') 6 42 1622.7' 11 18 1551.5'-1559' 6 NR 43 1622.7' -1624' 11 NR 19 1559'-1569' 7 RD 44 1625' 12 20 1569'-1590' 8 RD 45 1626' 12 21 1591' 9 46 1626.1-1634' 12 NR 22 1592' 9 47 1635' 13 23 1593' 9 48 1636' 13 24 1593'-1604' 9 NR 49 1636'-1644' 14 NR 25 1605' 10 50 1644'-1646.5' 14 NR (Note: NR-Not Recovered; RD-Rotary Drill) RECEIVED JUN 17 2015 CANRIG AOGCC �� I Bettis, Patricia K (DOA) From: Brian Deurloo <brian.deurloo@lincenergy.com> Sent: Monday, June 08, 2015 12:30 PM To: Bettis, Patricia K (DOA) Subject: RE: Keex-2 (PTD 2l4 I12) Patricia, Thank you for following up with me. I am aware that you haven't received them yet. I sent an email to the folks that are helping me out with that and it got kicked back because I spelled their name wrong. I've since got that resolved and you should be seeing the drill cuttings this week and I am working to get the core chip samples as well. Thank you, Brian Brian Deurloo Pi 4 11 mI -').� � � :� General Manager Clean Energy USA ��m�� °�� P f1 307 309 2009 M +1 307 439 9570 E brian.deur|oo©|incanergy.conn 5 1%,,,_,.,,.:''J?::'*'::.,,,Igli,''.;,:'-',L-E.i;,:',DIV:!.:i?'!,:20PrOotatilloilow.:,,:allfitc;iimc.i44:,,,,::i JappirlftgeiligNiMaika...':''''''n!*1M,Pi ''''17:,'Slanfr***,k10t'Siy#2019,:r Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, gistriuute,forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail oree-mail linc@lincenergy.com and delete this message from the computer in its entirety, Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission.Opinions,conclusions,representations,views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Bettis, Patricia K (DOA) [mai|to:patrida.bd±is@a|aska.gov] Sent: Monday, June 08, 2015 11:45 AM To: Brian Deurloo Subject: Keex-2 (PTD 214-112) Good morning Brian, To follow up on our recent telephone conversation, the AOGCC has not received core chips from the Keex-2 well as of Monday morning June 8, 2015. Thanks, Patricia 1 • IP Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Wednesday, April 22, 2015 3:10 PM To: 'Brian Deurloo' Cc: Bettis, Patricia K (DOA); Carlisle, Samantha J (DOA) Subject: Keex-02 Digital Data Brian, Please provide the LAS files and any additional digital data associated with the Century Geophysical logging completed on Keex-02 well via CD as we discussed. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W.7th Ave,Suite 100,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information. The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl(alalaska.gov. 1 O • Carlisle, Samantha J (DOA) From: Brian Deurloo <brian.deurloo@lincenergy.com> Sent: Monday, April 13, 2015 8:27 AM To: Carlisle, Samantha J (DOA) Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Thank you Samantha. I received 17 emails and I haven't counted the attachments yet. I will go through the information over the next 24 hours and get back with you if I require further information. Thanks, Brian Brian Deurloo .4 ,.a General Manager Clean Energy USA ' ` +1 307 309 2009 . +1 307 439 9570 L brian.deurloo@lincenergy.com . LIl l PO Box 789 Glenrock WY 82637 p��±±0 UNITED STATES EDERU P+1 307 309 2000 , t WvAPolfricenetg?.colt F+1 307 309 2019 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha 3 (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Friday, April 10, 2015 10:55 AM To: Brian Deurloo Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian - You should have received 18 entails from me with 26 different attachments. Please let me know if you do not receive all of them and we can work together to figure out what is missing. Thanks! From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter . 1 • 0 Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We maintain comprehensive well files within the office but I wanted to double check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo ' n r"4 LI General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurloo@ilincenergy.com ., . u PO Box 789 0 Glenrock WY 82637 �p�! UNITED STATES lli P+1 307 309 2000 viwevitilcel tip corn F+1 307 309 2019 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc©lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo(1incenergy.corn> 2 • • Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K(DOA)" <patricia.bettisr&,alaska.gov>, Steve Whitehead <steve.whitehead@lincenergy.com>, Cole Hayduk<cole.hayduk@lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl@alaska.gov> Subject: RE: Linc Energy Letter Samantha, Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo ,; -): General Manager Clean Energy USA +1 307 309 2009 'I +1 307 439 9570 brian.deurloo©Iincenergy.com ,@ ' . PC?Box 789 0 � d � Glenrock WY 82637 a ti 4' s �� , UNITED STATES '` ;1 ,, • ff � ,, p+1 307 309 2000 '44',a x` `' 4 er a ;, ,�: x t `9 ', 't,,, v.'7 '1;?iaE ry,'' ti " "�'` '''-.'4 � F *.or , ',,''',7' F+1 307 309 2019 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Iinc©Iincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 3 • • From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6,2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle Executive Secretary IT Alaska Oil and Gas Conservation Commission 333 West 7'''Avenue Anci.ioragc, AK 99501 • (907)793-1223(phone) (907) "27n-7 5=12(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. 4 • • From: Brian Deurloo [mailto:brian.deurloo(allincenergv.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA 5 • +1 307 309 2009 +1 307 439 9570 E brian.deurloo@lincenergy.com a • PO Box 789 Glenrock WY 82637 UNITED STATES >it ►a ll�G II y. m F41'3 17 81 r Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipients) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail IincPlinceneray.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 Carlisle, Samantha J (DOA) • • tea - a From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:50 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: CON FIDENTIAL_Linc_212-112.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary II • Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501. (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contain.s information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo©lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fiSwithin the office but I wanted to doll check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo 0 El General Manager Clean Energy USA +1 307 309 2009 M +1 307 439 9570 E brian.deurloo@ilincenergy.com ARLO Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Iinc©lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From:Carlisle, Samantha 3 (DOA) [mailto:samantha.carlisleOalaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J(DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis(iI,alaska.gov>, Steve Whitehead <Steve.whitehead(jlincenergy.com>, Cole Hayduk <cole.hayduk(djlincenergy.com>, "Guhl, Meredith D (DOA)" <Ineredith.gulal(&alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corn Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo General Manager Clean Energy USA +1 307 309 2009 m +1 307 439 9570 E brian.deurlooPlincenergy:om ,791; .1.1!!:260akerMillitelgigghWIPOMMI1040164):**7";,:,45761000.04143 JL 411::;7!, t ; Ai10AMKgrteViiiiUkgqgg,VtggigigiMfi!'q:NIRS114SndllStgfEttiVjVCAIMS#Cji4 26 ,r,743 Adit: lifitatmossoloomploweenowaikoitimilL&„,01wwolig,,,r '6144516'14:06':' 01.4100,90101112mORIMItimeatioomMt4troffitelamive:40444,04 looposegincrinewommitoommbigisamoopasLI,Ti,rep,„Ammoo*C.„,..201iri,54.140g Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc©Iincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • . Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle h1Xec utive Secretary It Alaska Oil and Gas Conservation Commission 333 We.q 711' Avenue Anchorage, AK 9950 (907) 793-1223 (phone) (907) 276-7542 (tax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenerdy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurloo(&lincenergy.com r 1„7-712 414;4 4 Ps Iii 5 • • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • Carlisle, Samantha J (DOA) oe From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:50 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 8.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, a nks, Samantha Carlisle Executive Secretary I1. Alaska Oil and Gas Conservation Commission 33.3 West 7ik3 Avenue An ;.Bora„e, ' K 99501. (907) 797-1223 (Thane) .90'e 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@ lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We i maintain comprehensive well fi•within the office but I wanted to dole check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo General Manager Clean Energy USA +1 307 309 2009 I'= +1 307 439 9570 E brian.deurlooMincenergy.com A 11100k0161,4 iliarKa424049Weefiliglit-i Hrfirin irirpipi'°: w i 3 a`�,a"e 3 r 8 r 4 ",� d444�� r��q� �� tiff ll latmegowl 'Af s 'i 1 �� i 1 1; Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail lint@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary 11 (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettisgalaska.gov>, Steve Whitehead <steve.whitehead@lincenergy.com>, Cole Hayduk<cole.hayduk(c lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl(aalaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • 0 Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corn Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo ilt Et A General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurlooC&Iincenergy.com „ -,mniplianwqrim&qmo,vmn .Aimomtomgamvolmygia640011 t 3WINgrg'ITWAPIIMWEAVEIRRWOingitPiglikmo0106001004104014'.1401MMNONarloolOwasona , 4'Mv-m.t.i4 11 ' 2.illaiiikiAALAMMMOingattiVEMilikifitiMIIIIWo r:.i•101111ilitimiTANIAMNESE',A .ilkivm826,,,,,,::. ATS.E , 1,111k4---'4....' ,,J0 11:1'.iP1)01001RWROSANnifiraltlieNNAMIlliMitii101011!110141ilitArkilli11111111000tillitiTVg%A MirliMillOPEiaaaliiiigligigitilVilpSikillin1111611111804WW,MMINIIIIIII0V 1,14111101441PIVIInillif ”PAPPI''''Et40$1114110006hiumiiii4a4r4010DmaiNOPOOSSeKIIKVOWOWW191101404011.11.14%114a014410010,04m= soviimmagArouvitoWoomNaloggooktimmOmommtolm-taimpvgwoffwv4414,4..,x0,11,-Apft,,,,—.0--,—. E,, „1.0„--, Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc©Iinceneroy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.goy] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle Execu live Secretary 11 Alaska 1)0 and Gas Conservation Commission 333 West 7'1' Avenue A 4:11('We, AK 99501 (907) 703-1223 (phone) (907) 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. It you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo(alinceneroy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket# OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo II General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurloo(a lincenergy.com F � r o „;!@#261' 5 • • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Iinc@llincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • Carlisle, Samantha J (DOA) la-- kA From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:50 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 7.pdf From: Carlisle, Samantha 3 (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next lesA,minutes. Thanks, Samantha Carlisle lIxecritivk,!Secretary Ii Alaska Oil and Gas Conservation Commission 333 West7 Avenue Z\nchki'"ge, AK 995°1 007) 793-1223 (phone) (9(17) 276-7342(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may.contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or.federal law. It you are an.unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@aiaska.gov. From: Brian Deurloo [mailto:brian.deurlooPlinceneroy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We maintain comprehensive well filiwithin the office but I wanted to do a check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo 1,11 General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurloo©Iincenergy.com K ✓22htilt ':11 ,., 4 9:Sie. y; .!r i 'pa9I 'fir - - 4 ,--G'644golmto0m444. 743,4:44Ons4evee0Eilkswer4000,004*.:7, ---4", 'rAgmolam:TI, it 1 �� . <t2 ..-. �i1 i �� A ...� .. it�� .rw�k: W .::..,a.is Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail line©lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.htlnl Thank you, Executive Secretary 11 (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle(a alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis(i4alaska.gov>, Steve Whitehead <steve.whitehead(a�lincenergy.com>, Cole Hayduk<cole.hayduk@lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl(a�alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • • Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloor General Manager Clean Energy USA is +1 307 309 2009 1,1 +1 307 439 9570 E brian.deurloo@lincenergy.com NOLVV14,e0m0P§AwggVOimmemo.AK0404,4i0AROMOIRaWititaliftwaighilAirok?4,11P4 ',!,,i4,10110,101001174;,MtieirgNiciii41011131101! yo „:„,at „atmhogotiogAgrog 14,44,Aram .1"101601011914.010PIMAMINVINMO AVM Mak goi,” Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail IincPlincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha 3 (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle l 'Acciitive!-;ectotary If Alaska Oil and Gas Conservation Commission :1),; West 7"' Avenue Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542(tax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),Stale of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. if you are an unintended recipient of this e-mail,please delete it, without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenercw.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • S Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo El General Manager Clean Energy USA F` +1 307 309 2009 M +1 307 439 9570 E brian.deurloo(7a lincenergy.com 'il'!:'''t1004:1ME 140, #.1,..-At:ik:-_, r,:}Ra? ii 1410,0:4161,c,',tyo. 650091,j 5 • S Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • Carlisle, Samantha J (DOA) c9 ' a—,\ \ - From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:50 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 6-2.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary H Alaska Oil and.Gas Co.nservatio.n Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska.Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 illmaintain comprehensive well f within the office but I wanted to d•le check what was on file at your office. I appreciate your team's time and attention to this matter, Best regards, Brian Brian Deurloo Fig General Manager Clean Energy USA r P +1 307 309 2009 y +1 307 439 9570 brian.deurloo@lllincenergy.com 3 Ili`. lop kt '7,7,1 1---1,-,1,1)/flosp;!:.:,..0,,444414 444440,04 444,1044944.4-44:444i4440410110'1444441A44144 uffttlit'44 4-444 Ale* 404 ' ' pi44144V4444Asio4'444.444.04444pgo4*444444.44 ,44 m 'At ., 14 r, z°„ ' t;a L A, l .u�, Rgb Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary 11 (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <sarnantha.carlisle a,alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis@alaska.gov>, Steve Whitehead <steve,whitehead(a(lincenergy.coln>, Cole Hayduk<cole.hayduk(clincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl(a(alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • 1110 Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo gl a General Manager Clean Energy USA P +1 307 309 2009 ivi +1 307 439 9570 E brian.deurloo(alincenergy.com e5ftv.r-wumtogvooEuNVi!i!l!Elia,gik;:AuooKvqcovzqoorrrogvi, wr,:-7,0krubellgqimez:4v,AromPtigadiA: 9,6,''''''!!!:Em,,,,,'"1":, ,Er. -_ mirIi,--'.-:Y.-g:mge4;%:!:;;L:.;*.zito,vevoitztairgvEgilloigliivoimme44:42:440:4460,pan'*Avaigig„,11.,,,t,,,,,,,vo,i,-*:;:1,:::1!:,!!i;i:nrincov 41',,,,(EN.1_ 'If, jii. I 'AillilinkTitrIrlOiiiiiiiiitiaZZ,.41040100121,MgrigidgMkgi4610111110014411111111N00600;:CiMiNV2finilg iiii,1( 111,1,0 t, ei;i!: !, ' ligpliiiiiMitiMMONONAMEEVIMitimigNigNONINVORNIE000aWiMifj. tri II, '''''' ,..01: :•-t JlegliONNIMIMMINIERIWAROPiit!!!!,!!1!EIM!:tmeamprgilligtogiakCiloodbitip 1!,.:&,,t,„ ..4,,th. ..:;:::....„Lk,i:30MatallalitgaVOR0240161;a330AMMigiVRIVIALZVEZINVOTY!,.A.14420.1e1,,iiiiiirgiimigatilotig, 4444404;:igi,!.$44411"041020141MiginglgaligliZEUMMITDOMMORVit;A:,,VV5504.10,Z402.1"It IMI,,iiriKtiegiViar ...MOW_-.4,:Of'1.441110SUMMAIMiii!iet*ANIMMEMINIIANNEgiltaki;i1WKApagEtMlariti-OWN4,0101310M104116111M1181100 ril,.1% =''''..;•:?ggii,'00Willigi'''if',MOONON,ON0144-444rinattlft l'-tett4ht2Egiiiiiiiiin '1,1:11:iiiiii:::::,::::::::,:::::::.:::::,i,6461611i6r,-.N.A,K50,:.,,,,,,,-:::.,.....-_,A.,,,,,d,— --—-,,, Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosureundert her applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward orwardor take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mailin error, please notify us immediately by return e-mail or e-mail lincOlincenergy.com and delete this message from the f computer in its entirety. Internet communications cannot be guaranteedto be secure and error-free as h information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.goy] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, So.rnantha Carlisle \ecutive Secretary It Alaska Oil and Gas Conservation Commission 3113 west 71, Avenue Anchorage, AK 99501 i907) 793-'1223 (phone) (907) 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the.Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended.recipient(s). Ii may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. 0 you are an unintended recipient of this e-mail,please delete it, without first saving or forwarding it,and,so that the.A0GCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo(alinceneroy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA I +1 307 309 2009 M +1 307 439 9570 F brian.deurloo@ilincenergy.com '411' io e 1710 '14111WP*; -64•1404,11,volgrOMIlfirmv IA; , g �.0e, geT 5 i • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • Carlisle, Samantha J (DOA) � A- `� From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:50 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 6-1.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska.Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1.223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo©lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fit within the office but I wanted to dole check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo sr v,,, General Manager Clean Energy USA t P +1 307 309 2009 l M +1 307 439 9570 E brian.deurloo©alincenergy.com 4 4i "11111"61;711 144, . 1 .... --.:::.';;;;77ti;li.:..!4.4.47;.''.;,:411,211',Z.17:::1.;g':!:::::::::vi..::;.:1:::::::::::::1;:i:::! ::::::-:::::: :!!::::,.,.ti .,::�� (moll k i �' �4a epi id : 1,.`L.. .. C^ iti 6 ,1`.. a _€ Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo(I)lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlislenalaska.gov> Cc: "Bettis, Patricia K(DOA)" <patricia.bettis a)alaska.gov>, Steve Whitehead <steve.whitehead@linceneray.com>, Cole Hayduk<cole.hayduk@lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl@alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • • Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corn Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo *Lb AA General Manager Clean Energy USA P +1 307 309 2009 itis +1 307 439 9570 E brian.deurloo@ lincenergy.com „1 tosmovirg Ittiatmoilro'W42410,1 1 �q� 4 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify uts immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha 3 (DOA) [mailto:samantha.carlisle(aalaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM T Cc:o: BettisBrian,Deurloo Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 13 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle 1:ixecittive Secretary 11 Alaska Oil and Gas Cr)nserva I On Ci.)mmission 333 West 7th Avenue Artchoriige, AK 99301 (907) 793-1223 1907) 276-7542(tax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of ibis e-mail,please delete it, without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle©alaska.gov. From: Brian Deurloo [mailto:brian.deurloo(alinceneroy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 i i Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 s brian.deurloo@ilincenergy.com i 5 • • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@linceneroy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • Carlisle, Samantha J (DOA) U — 1 a From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:42 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 5.pdf From: Carlisle, Samantha 3 (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Sec.retary II AIaska Oil and Gas Conservation Commission 333 West Th Avenue Anchorage, AK 99501. (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska.Oil an.d Gas Conservation Commission(AOGCC),State of AIaska and is for the sole use of the intended recipient(s).It may contain confidential and jor privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fie within the office but I wanted to de check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo r General Manager Clean Energy USA P +1 307 309 2009 II +1 307 439 9570 in= brian.deurloo(&lincenergy.com 1F ,r`dR Ifl l'l Sty %1Clort E • .; ,„,,,h..? .rgiem .miymtvv,... ,,g!ittimiorreliv,.. ''.1:«.igliwt......r.-Lookii.w.1.„:4,44.A--i4...‘v.vritx,44,,,,4,1,-,404401'itica.'-','Y ....,it, actv ti AO �i � 1 i� � � � ytoil Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.htmI Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo(a),lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle c{alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis(42,alaska.gov>, Steve Whitehead <steve.whitehead@lincenergy.corn>, Cole Hayduk<cole.hayduk(c�lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl@),alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, 1110 I Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo :::e7; ;"..i---.1 ail CS:g General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurlooOlincenergy.com ,:•::::::.--r.:-1 ,11,14,1101'ogdzimpm,,,;,4,,,,,,,Nanums,imp?:trim:0;40,5,,gagromvIdarmatimrInisiosigoadr,47-r,,.,:;p„4,00.0 N.14.1viwiti'dt„i10110:04N4 4;nohow 1:',AV.41/b:44',1.101,11:,:,!!;i:i1:!113411*AltiV71:9144i!:!1:,1101 :::,:AkaalfdiE1D.015044001141411111;t40.0114W:11.,,,41%;!iM 4,0111:•:20'AU'01111A1011011111114 11,14, iire 10. A U. -' '1Wftagii0i2a4RIMENtIgggilOWNIONV4041041403,405.111444,14AAIONOt *ger,!;WWW1.414°4104WM6469MitAIMOPF.90#00,010Nfkjit144:4111401t1011V:10k4N PI,4 jediv 4.,::,4,,, ,,,:r•ii,:lodibil.0011.131144,414inglitielthigigiNiVittle=Vet'L 'irNOlv„Pliiii#1101111iiti AifIIMHMMIIIIIIaIIrlitkMBHRNIMIMBaifingtggai.Zi*r('NAVANE:V0.;,fta ,povqonpzmvoirw.pmiii:iotanuAieqparipomtegrumsoormkeoevvppvm:wmtvxfv,gvmi,4v;W-*ST,4.4• 1 ,t44114 ,ming 1414u,;I vi,1•0°•-,'.;`1,,,ixiit. ...,'"Viittv44.4141ENOMmilliVaalir VOSATE404,514NlesIgii:0'04,4111'WWII i'111:;',Ir 110°:141ri°11'r 1 , ts,,: hio..4„,;;;,2N,,!-1244iwwildielf4001,ffiligtannainliii!illi*VitfitinegippirSi!:iiil:igliikkgifiair ,,."x1.0=4 Atop alif$440.:mmiliift wink Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle eat live creLiry II Alaska Oil and Gas Conservation Commission 333 1,1 ' t 7 f\venue Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenerdy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I on April 3rd, 2015 in regards to Docket correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 k brian.deurloo(alincenerqy.com �� ' �, � "yr,*,,,,...7-(4-nirf,, ,,441,01.40tiniv, '4,10[7,1' lit!illoi,.,�_ 1R 5 • • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • Carlisle, Samantha J (DOA) n)11 C)'' \ \ - From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:42 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 4.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501. (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forward:i.n.g it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1.223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fill/within the office but I wanted to dcille check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo i" General Manager Clean Energy USA P +1 307 309 2009 1A +1 307 439 9570 E brian.deurloo©Iincenergy.com „ _ e filipcnrr iiipms4sw . ' d�,iiiiheoqqMitoomomrtoiLpoao- � 'fit�u�" �� K )11, IE�t � eg T t . Velt r i t Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail lint@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@a>alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo(a)lincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J(DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis(a7,alaska.gov>, Steve Whitehead <steve.whitehead@a lincenergy.com>, Cole Hayduk<cole.hayduk�)lincenergy.coln>, "Guhl, Meredith D (DOA)" <meredith.guhl( alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, 0 4110 Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 111 +1 307 439 9570 F. brian.deurloolincenergy.com 14,z1131:417-'-;1- 41ii11,1Q11111egl111111R111,1M3111N1iligii1R114;10111151111111MANOMIlliziAllsoloonentr40100q--441,43:*anuo 5lAv',,,,, ,qc1,,,,,,,-,,,1—, m :!,: i,44, 4gE..,4ak,1*, :a.iiviVotpr.4deRglgoji4NmIlmfflMqmplvillo,.!44.411:00;,z-vio..ffmtAAumpin PT--..p,%AFL, A Alt -. ,,..javettexio:154,*iii::::7:Wotiftegeoptimed5voiwitottoolopmetiMegoist ff.,,!:.::vototisoltig 4 ipysi: i', 1,- ,... ' ::.t!TA:.'AiMiiititinpiiiiii*idgitiiitiElir INNEMICRION11,61:1110100',"014C4fetigiON ITL ;:utti '..-:,,,zio' ,,,e,'f; .' iilimulfabitatrOligleiviihiiiii106016 ViiiongliMilMalataniiiiigetkeitirmir WI Lww., ,, ,,mt,..t,:_1,.„',:„,.oijoiEowonkhvesatzqiiPSU4004'riMEE:qumsgFPTelmi6gio44-4,1,:,--t,Thlimilh,G. Allmagt1.01011404110$0,4,4mammegalpy4amAlmi446A0eq;m000gROValtvliki&mg,W0,Alg 11 ',,,,,,,,,p,,,A0114!iculffilpopolonAmtgatleoWolitimmiamTlowl%4Iwg*N000w,*40Av..dil.A,Pitoaviiillwawg Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosuretheunderr applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward otake any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mailin error, the computer notify us immediately by return e-mail or e-mail linc©Iincenergy.com and delete this messagefrom computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 201.5. Please let me know if you have any other questions. Thank vou • , !!;31-rialitha Carlisle 1!:\ent Live Secretary 1.1 Alaska Oil and Gas ConsorvaLion Commission 333 ‘Vest Avenue Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542(1a-x) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate stale or federal law. II you are an unintended recipient of this e-mail,please delete it, without first saving or forwarding it,and,so that the,AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at (907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo(alincenergy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • 0 Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 i7 +1 307 439 9570 L:: brian.deurloo©lincenergy.com ,kms -:„ ' 4.-L,' " Or '' .40741 4.411111k#911411,141'' ,„ ,' ' ' 4,1tliaikeillJZAP.,--air'ir ')'"Ate.t.4'1'771 5 • • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • • `� l Carlisle, Samantha J (DOA) CJ( l + — la From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:42 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 2.pdf; 212-112 - 3.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in.Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501. (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo©lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fit within the office but I wanted to d•le check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo0 cu. General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurloo(alincenergy.com „Ili,„,,,„:... ....„.w..:„.„„,„:„:„,:„.,.,....,„.,,,,,,.,:„..:.:::,„.,..,„.. , „,..::., „,....:..2,,',,,„,,,,,,,.:,,,•:::,,,,,Koottzelee!,::,..:4,:',w2qpg,,.110.04110o1 ,qi-41444,4*,,D15741;8r:'-''''''''-''''''4--::"'"""' zli', , ;:' i:::fl - i P,,,,,!!!5iT:::::,:•••.:-,°- -, ''''''''''' '''::,...:.i,,,!.4..-: ,'',,,'::::':'Hil::0,efr,°,0#„,:m3:14.°N;%,,nimot, 1,,, ..0.1 .4 ifiszappogril--...:,A%-::-.,1*.rigor. tr W'. :g 4eVilfil,' 00.401204014 }4 4 �✓ Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail lint@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, harr?xzrrlha t'urtisle Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@incenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J(DOA)" <samantha.carl isle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis@alaska.gov>, Steve Whitehead <steve.whitehead@lincenergy.com>, Cole Hayduk<tole.hayduk'c�r�,lincenergy.cotn>, "Guhl, Meredith D (DOA)" <meredith.guhl@alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • 0 Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corn Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 M +1 307 439 9570 E brian.deurlooc iincenergv.com thi Disclaimer Notice: The message and attachments) contained in this e mail are intended for the named recipients) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Iinc©lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@Ialaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the, letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle Exec('live Secretary 11 Alaska Oil and Gas Conservation Commission 333 West 7 Avenue Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains:information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it, without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@linceneray.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo CI 0 General Manager Clean Energy USA ;, +1 307 309 2009 M +1 307 439 9570 Ir brian.deurloo(alincenergv.com mtyvg!my- ^li.= n• ._ 4-11.411,1,0111 5 411110 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail IincPlincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 Carlisle, Samantha J (DOA) t 1 From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:42 AM To: 'Brian Deurloo' Cc: 'Steve Whitehead'; 'Cole Hayduk' Subject: RE: Linc Energy Letter Attachments: 212-112 - 1.pdf From: Carlisle, Samantha J (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several emails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501. (907)793-1223(phone) (907)276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil an.d Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forward:in.g it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Sa.:mantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We 1 maintain comprehensive well fi•within the office but I wanted to doe check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo General Manager Clean Energy USA P +1 307 309 2009 P i +1 307 439 9570 [n brian.deurloolincenergy.com an:MilararaWASIJI 4-111.11111.11,11141.141 , �w arra, PO; q . . k s r I a r Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle©alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo(alincenergy.com> Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettisgalaska.gov>, Steve Whitehead <steve.whiteheadlincenergy.com>, Cole Hayduk<cole.hayduk@lincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhlic�alaska.gov> Subject: RE: Linc Energy Letter 2 Samantha, • S Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of drilling logs, only the first page. I understand that Bob Schlosser and Corri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo General Manager Clean Energy USA +1 307 309 2009 M +1 307 439 9570 E brian.deurloo(alincenergy.com :,:ljt0JMIliiiirlifiigieicililliloillillinitli:iilWMFOWW: itellMigiVA2111110015ESSE: 414,4,79iMINIOR,001111001 ,6;,,,,,,, „.,_,... Neurt,,,,,,- ,,,.'..,:,r,t„pgm::,,,h,k-z;K.:!,,,t%6gTotofeowmigrikoqitv:gmN ihibilumilimunalkilimCw4vItiralle,tr 1 ;'''" 4E01 'I ;! i ..i,;;,111i?illehlimiltilf*OritiiiionintiSMIORWRViit1101,111111!INO11111•111Sok-_,:E-441likijts,VOliii'!, illi 0111p: !,.. 0. ,i I : 93,,i01:::ft;:!i::liomilii(14014410Niip;iiiii!vgiliptiMili85010101...,11081881111,11,111:0,01611,F,1111111;!. .%'...,ILV,Ift,I.L.;:.1111kill t itr.,,. .,.,„,00„ ......,,,........i.avommovaosirmiwommigoomotrommenoboonrito 104 :,A601. 1101111 I '1...00,000F4.4.410900emoftioloameaffproggiag41064600.0vgly:matamelabor p, ':',,tbrtio;,10,filt i A.,,,,,I,3 h.v,,,t,.-hr4. MAigamoiddiaMpi.,::560040400111101:11110101MENONFAWn41171MI gERMITIEN6.066'r....41,K9'rVii.:..,ir'S,14-.'rirj." 11%4'.`At2M;.."'*44444,140iitierigiakillibaiarTRA*Ort;WRith3iMiNilialliPigliint4W,niglaVeveilliN111!1.020:ilitii),, Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter 3 • Brian, "Within 15 days after receipt of this notification" is referring to calendar days. You received the letter on April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, Samantha Carlisle F win(live Secretary II Alaska Oil and Gas Conservalien Commission 333 \A'e,t 7'i' Avenue Alicliorage, AK 99501 (907) 7931223 (phone) (907) 7.70-7542 (tax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. II you are an unintended recipient of this e-mail,please delete it, without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@linceneroy.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha J (DOA) Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter 4 • • Samantha, Thank you for taking the time to speak with me yesterday about the letter that you sent to Linc Energy on April 3rd, 2015 in regards to Docket # OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Corri Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA +1 307 309 2009 =a +1 307 439 9570 E brian.deurloo@lincenergv.com �s aj 5 • S Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 • Carlisle, Samantha J (DOA) a` L // L From: Carlisle, Samantha 1 (DOA) Sent: Friday, April 10, 2015 8:40 AM To: 'Brian Deurloo' Cc: Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, I have all the documents scanned in. Altogether they are too large to email so I will send several em.ails in the next few minutes. Thanks, Samantha Carlisle Executive Secretary 11 Alaska Oil and.Gas Conservation Cou.imission. 333 West 7' Avenue Anchorage, AK 99301 (907)793-1223(phone) (907) 276-7542(fax) CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska.Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended.recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without'first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@?alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@lincenergy.com] Sent: Thursday, April 09, 2015 1:23 PM To: Carlisle, Samantha 3 (DOA) Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Hello Samantha, Please find the attached Request for Records form. Can you please give me an indication of the timing for the records search? Also, I would greatly appreciate it if you could email me the scanned documents found within the files at your earliest convenience. If some of the paperwork is too cumbersome to fully scan, such as a gamma log, then a scan of the front page will suffice. We maintain comprehensive well files within the office but I wanted to double check what was on file at your office. I appreciate your team's time and attention to this matter. Best regards, Brian Brian Deurloo i 0110 General Manager Clean Energy U +1 307 309 2009 1.1 +1 307 439 9570 : brian.deurloo@lincenergy.com sem' PQ Box 789 Glenrock WY 82637 ! UNITED STATES f11ERGY P+1 307 309 2000 www itnre,nErgy Cott F+1 307 309 2019 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha J (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 6:29 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk; Guhl, Meredith D (DOA) Subject: RE: Linc Energy Letter Brian, Please fill out the "Data Request Form", sign and return to me via email. It is the second form from the bottom, I believe, and can be found on our website here: http://doa.alaska.gov/ogc/forms/forms.html Thank you, Executive Secretary II (907)793-1223 Original message From: Brian Deurloo <brian.deurloo@lincenergy.com? Date:04/08/2015 4:22 PM (GMT-09:00) To: "Carlisle, Samantha J (DOA)" <samantha.carlisle@alaska.gov> Cc: "Bettis, Patricia K (DOA)" <patricia.bettis@alaska.gov>, Steve Whitehead <steve.whitehead a,lincenergy.com>, Cole Hayduk<cole.hayduk(alincenergy.com>, "Guhl, Meredith D (DOA)" <meredith.guhl@alaska.gov> Subject: RE: Linc Energy Letter Samantha, Ok. Thank you. While we are working the response to your letter, can I please request a record search of the Linc Energy Tyex-01, Tyex-01X, and the Keex-02 at your earliest possible convenience? Is it possible that either you or Meredith Guhl in the library can do this record search and scan the documents to me so I have a better understanding of the situation as well as provide the necessary documentation to the AOGCC for their benefit? It is not necessary that I get a full scan of 2 drilling logs, only the first page.•nderstand that Bob Schlosser andirri Feige of Linc Energy went through the exercise of providing the requested information to the AOGCC in August 2014 and we understood everything was resolved. Your help in this matter would be greatly appreciated so we each obtain the information we require. Thank you, Brian Brian Deurloo El General Manager Clean Energy USA +1 307 309 2009 N, +1 307 439 9570 E brian.deurloo(alincenergy.com PO Box 789 "" DC Glenrock WY 82637 <' UNITED STATES MERV P+1 307 309 2000 If r con' F+1 307 309 2019 , ritcaq Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Iinci ilincenerov.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Carlisle, Samantha ] (DOA) [mailto:samantha.carlisle@alaska.gov] Sent: Wednesday, April 08, 2015 4:42 PM To: Brian Deurloo Cc: Bettis, Patricia K (DOA); Steve Whitehead; Cole Hayduk Subject: RE: Linc Energy Letter Brian, 3 •"Within 15 days after receipt of notification" is referring to calenSdays. You received the letter on. April 6, 2015, the "clock" starts April 7, 2015, which means your response is due on April 21, 2015. Please let me know if you have any other questions. Thank you, atnantha Carlisle 1 ';f'(lil sccrotary (1 '0,1,k'a l_Oi[ 't_n i GAS ( onservalion (. ommissiCn Actio a.,e AK'a9)t)1. (007) 79.3- ne) ()1 /i 276 7542 (tax) CONFIDENTIALITY NOTICE This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete,it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact.Samantha Carlisle at(907)793-1223 or Samantha.Carlisle@alaska.gov. From: Brian Deurloo [mailto:brian.deurloo@llinceneray.com] Sent: Wednesday, April 08, 2015 1:30 PM To: Carlisle, Samantha] (DOA) • Cc: Bettis, Patricia K(DOA); Steve Whitehead; Cole Hayduk Subject: Linc Energy Letter Samantha, 4 Thank you for taking the time tooeak with me yesterday about the ler that you sent to Linc Energy on April 3rd, 2015 in regards to Docket# OTH-15-013. We were in receipt of the letter on April 6th. We will respond within the 15 days as noted in your letter. Just so there is no confusion, am I correct in assuming that the response timeline is 15 business days and not 15 calendar days? A due date of April 24th coincides with a 15 business day timeline from receipt of the letter. I want to ensure you that Linc Energy has made the response to your letter our highest priority. As I stated on the phone, we have had a change in management and personnel structure over the last six months. Cord Feige (former General Manager Alaska) left Linc Energy in November 2014 and Marty Rutherford left Linc in December 2014. I currently maintain the managerial role of Alaska Linc Energy Clean Energy operations. Therefore, please direct any correspondence to me directly. My phone number is 307.439.9570. My address is PO Box 789, Glenrock WY 82637. I must say I am a bit confused as to why the data for these coal exploration wells has not been provided to the AOGCC by this time. I am working with my team and mining the data to better understand the status of the wells and will respond to you as quickly as we can. In the meantime, please feel free to call me if you have any further question, comments or concerns. Best regards, Brian Brian Deurloo General Manager Clean Energy USA +1 307 309 2009 M +1 307 439 9570 G: brian.deurloo@ilincenergy.com UDC 0 e Box 789 Glenrock WY 82637 URGI TED STATES Pt+I1 307 309 2000 wwv��ilncin'tk tgy'.t r) F+1 307 309 2019 • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail line@ lincenerov.com and delete this message from the 5 computer in its entirety. Internet commtcions cannot be guaranteed to be secure a rror-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 6 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501 Telephone: 907-279-1433 Facsimile: 907-276-7542 Email: aogcccustomer.svc@alaska.gov REQUEST FOR AOGCC RECORDS AS 40.25100 — 40.25.295 I, the undersigned, request a copy of the AOGCC records listed below. I agree not to alter the contents of these records. I certify that I am neither a party nor representing or acting on behalf of a party involved in litigation in a judicial or administrative forum with the State of Alaska or public agency to which these records are relevant. Brian Deudoo Printed Name: Linc Energy Operations(Line Energy Alaska) Company/Firm: Client: Address: PO Box 789, Glenrock WY 82637 Phone No: 307-439-9570 (-:: Signature: i>4.;-,-.-77 *\dot4.11,-- DATE: 9Apr201 5 DETAILED RECORDS REQUESTED Complete electronic copy of AOGCC files relating to: Linc Energy well: Tyex-01 (PTD 211-137) Line Energy well: Tyex-01X(PTO 211-150) Linc Energy well: Keex-02 (PTD 212-112) and any correspondence between Linc&AOGCC re wells please email to: brian.deudoo@lincenergy.com Thank you! FOR AO 'CC USE ONLY FOR VENDOR USE ONLY Date Request Received: t 6 Name of Employee Handling Request: A,(Ka / Date Picked Up Date Records Provided: 1 0 LS Signature: Records Transmission Method: V}11 Date Returned: Signature: Control Number: 1 1'cv.06/06/2012 Linc UCG Wells Alaska, Regulatory Require rmation-Enterpris... https://ancevOl.soa.a .gov/EnterpriseVault/ViewMessage.asp?Vau... PtTh ) /l From Bettis, Patricia K (DOA) Date 2/18/2015, 9:40:00 AM To corri.feige@lincenergy.com Cc Guhl, Meredith D (DOA) Subject Linc UCG Wells Alaska, Regulatory Required Information Corri, Please advise by February 23, 2015 on what the status is for Linc to provide the regulatory required well data for the Tyex-01,Tyex-01X and Keex-2 UCG wells.This information is required to be submitted to the Alaska Oil and Gas Conservation Commission (AOGCC) within 30 days after completion, suspension, or abandonment of a well under 20 AAC 25.071. Failure to respond to this email and provide the required well data may result in the issuance of a Notice of Violation under 20 AAC 25.535 of the Alaska Administrative Code. If you have any questions regarding the data to be submitted, please contact Meredith Guhl at(907) 793-1235 or email at meredith.guhl(Walaska.gov. Please also advise if the AOGCC needs to contacting the Linc Houston office or the corporate headquarters in Brisbane. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793-1238 or patricia.bettis@alaska.gov. From: Guhl, Meredith D (DOA) Sent: Thursday, January 22, 2015 11:29 AM To: corri.feige@lincenergy.com Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: Linc UCG Wells, Required Information Ms. Feige, I have finished a review of the UCG wells completed by Linc, specifically Tyex 01 (PTD 211-137), Linc Tyex 01X (PTD 211-150) and Keex 2 (PTD 212-112).There are several items missing from each well history file that are required. of 2 4/3/2015 11:55 AM Linc UCG Wells Alaska, Regulatory Require ormation-Enterpris... https://ancevOl.soa. .a.gov/EnterpriseVaultNiewMessage.asp?Vau.. For Tyex 01: 1. No analytical reports of studies completed on the core have been supplied. 2. No inclination survey data has been supplied.This was noted as a requirement on the PTD. For Linc Tyex 01X: 1. No analytical reports of studies completed on the core have been supplied. 2. No inclination survey data has been supplied.This was noted as a requirement on the PTD. For Keex 2: 1. No digital versions of the elogs have been supplied. Digital versions are required per Regulation 20 AAC 25.071 (b) (6): the operator shall file with the commission "a sepia and a reproduced copy of all logs run...an electronic image file in a format acceptable to the commission may be substituted for the sepia".The AOGCC received the reproduced copy(paper version) but the electronic image file has not been supplied yet. Either a .tif or .pdf file format is requested, along with the .LAS file for the GR/Res e-log completed on 12/4/2012. 2. No analytical reports of studies completed on the core have been supplied. Please supply the required information by February 22, 2015. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100, Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole`use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 of 2 4/3/2015 11:55 AM • Guhl, Meredith D (DOA) From: Guhl, Meredith D (DOA) Sent: Thursday, January 22, 2015 11:29 AM To: corri.feige@lincenergy.com Cc: Bettis, Patricia K(DOA); Davies, Stephen F (DOA) Subject: Linc UCG Wells, Required Information Tracking: Recipient corri.feige@lincenergy.com Bettis, Patricia K(DOA) Davies,Stephen F(DOA) Ms. Feige, I have finished a review of the UCG wells completed by Linc, specifically Tyex 01 (PTD 211-137), Linc Tyex 01X (PTD 211- 150) and Keex 2 (PTD 212-112). There are several items missing from each well history file that are required. For Tyex 01: 1. No analytical reports of studies completed on the core have been supplied. 2. No inclination survey data has been supplied. This was noted as a requirement on the PTD. For Linc Tyex 01X: 1. No analytical reports of studies completed on the core have been supplied. 2. No inclination survey data has been supplied. This was noted as a requirement on the PTD. For Keex 2: 1. No digital versions of the elogs have been supplied. Digital versions are required per Regulation 20 AAC 25.071 (b) (6): the operator shall file with the commission "a sepia and a reproduced copy of all logs run...an electronic image file in a format acceptable to the commission may be substituted for the sepia". The AOGCC received the reproduced copy (paper version) but the electronic image file has not been supplied yet. Either a .tif or.pdf file format is requested, along with the .LAS file for the GR/Res e-log completed on 12/4/2012. 2. No analytical reports of studies completed on the core have been supplied. Please supply the required information by February 22, 2015. If you have any questions, please contact me. Sincerely, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100,Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. 1 The unauthorized review,use or disclosure o 1 information may violate state or federal law.If y,e an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 2 9 RECEIVEC Linc Energy Operations, Inc. FEB 0 6 2013 .IAC Alaska Division AOGCC ENERGY 3000 C Street, Suite 103 `�i i Anchorage, Alaska 99503 I Phone: (907) 868-8660 Fax: (907) 868-8881 DATA TRANSMITTAL Date: Fe90, TA-1 February 06, 2013 To: Commissioner From: Cord Feige Alaska Oil&Gas Conservation Commission Linc Energy Operations, Inc. 333 W. 7th Ave., Suite 100 3000 C Street, Suite 103 Anchorage, AK 99501 Anchorage, AK 99503 Phone: (907) 279-1433 FAX:(907) 276-7542 Phone:(907)868-8660 FAX:(907) 258-8601 TRANSMITTAL DESCRIPTION Linc Energy Operations, Inc. well completion attachments regarding well KEEX 02 (PTD 212-112)to AOGCC. In accordance with Alaska Statute AS 38.05.035(a)(8)(C)and Alaska Administrative Code 11 AAC 96.220, Linc Energy Operations, Inc. requests that confidentiality be extended to the information described herein and submitted with this transmittal. Qty. Description 1 -CD CD Contents: CONFIDENTIAL KEEX 02 Core photos (ipeg files), 4 each KEEX 02 Core log(pdf file), 1 each KEEX 02 Cuttings log (pdf file), 1 each 1 - LOG KEEX 02 Gamma Ray, SP, Resistivity, Temperature 1 - LOG ' KEEX 02 Dipmeter 1 - LOG `-- KEEX 02 Sonic 1 - LOG KEEX 02 Gamma Ray(thru Casing), Caliper 1 - LOG ` ' KEEX 02 Inclination Survey Please sign below to acknowledge receipt. ( 1/ l Received fa, y:-... � )7110 7 Date: Returned to Linc Energy Operations, Inc. Date: Accepted By: i tlr g _ . i "...7,'' j!t • I11111it s € a '" #r s II111" r i �: 1*. 1 '. �� r • Ir it ) ` *. 'Nor CI3 't ' '�. 411111. I " r 17, s. . 1 4 ) -. t • ,1 •:*,' ft ' # ■ 14 ! 4 ' 11.11.1 ,1. � a ; it q �,� 4 4a ry grow a: b* '' , i1.. ,, ta 1/ j : 1 r } 1 Z * • ,t tl ..,' ' Eticj..410c,51 IX , ' , ' " , ti I y i"...,itl, �, � R , t 1 s k d 4 I • : 1 I. ' 1 i 4 I . , , ,44 a �.. f .'" .kY :,• ,, iZrlitsr.,4::: AIr % O7 m ', .'"�„ , : , _ .=q+�'.,...Q. .,..a. 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".`:' '''',•:':',4„#., iit.."' a1 r ` t i ti.' „. i 2711/470Y1 ,- i i�; �n�r. • • RECEIVED FEB 0 6 2013 AOGCC filE RGY Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 February 06, 2013 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Well Completion Report Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test Core) TRS: NWSE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations Inc. hereby submits a Well Completion or Recompletion Report and Log for well KEEX 02, an onshore Underground Coal Gasification stratigraphic test well approximately 8 miles northwest of the town of Old Tyonek on the west side of Cook Inlet. Please find attached information as required by 20 AAC 25.070 (3) for your review. Pertinent information attached to this submission includes the following: 1) Form 10-407 Well Completion or Recompletion Report and Log 2) Operations Summary 3) Abandoned Wellbore Diagram 4) Mud Weight vs Depth Chart 5) Abandonment Photos 6) Charted Pressure Test of Cement Plug at 1,460' MD/TVD 7) Conductor As-Built 8) Detailed Core Log Summary (On included CD) 9) Core Photos (On included CD) 10) Cuttings Log (On included CD) The following are Linc Energy designated contacts for reporting responsibilities to the Commission: • 1) Completion Report Stan Porhola, Drilling and Completions Engineer (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Bob Schlosser, Coal Geologist (20 AAC 25.071) (907) 868-8660 In accordance with Alaska Statute AS 38.05.035 (a)(8)(C) and Alaska Administrative Code 11 AAC 96.220, Linc Energy Operations, Inc. requests that confidentiality be extended to the information described herein and submitted with this transmittal. If you have any questions or require further information, please contact either Cord Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, Cord A. Feige Alaska General Manager • STATE OF ALASKA0 ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil ❑ Gas ❑ SPLUG ElOther ❑ Abandoned 2, Suspended 1b.Well Class: 20AAC 25,105 20AAC 25.110 Development ❑ Exploratory ❑ GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No.of Completions: _0 Service ❑ Stratigraphic Test 2, 2.Operator Name: 5. Date Comp.,Susp.,or 12. Permit to Drill Number: Linc Energy Operations, Inc. Aband.: 12/7/2012 • 212-112 3.Address: 6. Date Spudded: X13.API Number: 3000 C Street Suite 103,Anchorage,AK 99503 10/12/2012' 50-283-20166-00-00 - 4a. Location of Well(Governmental Section): 7. Date TD Reached: 14.Well Name and Number: Surface: 1533'FSL, 1717'FEL,Sec25-T12N-R13W, S.M. 12/3/2012 KEEX02 Top of Productive Horizon: 8. KB(ft above MSL): . 683 15. Field/Pool(s): GL(ft above MSL): • 675 Total Depth: 9. Plug Back Depth(MD+TVD): Exploratory. 1533'FSL, 1717'FEL, Sec25-T12N-R13W, S.M. Surface(0'MD/0'TVD) 4b. Location of Well(State Base Plane Coordinates, NAD 27): 10.Total Depth(MD+TVD): 16. Property Designation: Surface: x- 235,221- y- 2,596.603 Zone- 4 , 1,684 MD/1,684 TVD MHT#9200462 TPI: x- y- Zone- 11.SSSV Depth(MD+TVD): 17. Land Use Permit: Total Depth: x- 235,221 y- 2,596,603 Zone- 4 N/A N/A 18. Directional Survey: Yes E No ❑ 19.Water Depth, if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) N/A 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: SP/GR/Res/Temp. Dipmeter,Sonic, Inclination Survey, Gamma Ray(Behind Pipe) N/A 23. CASING, LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD FT PULLED 9.625" 40 L-80 0 15 0 15 Driven N/A 0 7.0" 26 L-80 0 113 0 113 8.5 32 sacks. 15.2 ppg 0 5.5" 14.9 A53 0 800 0 800 6 44 sacks. 15.2 ppg • 0 4.5" 10.8 A53 0 1527 0 1527 4.875 41 sacks. 15.2 ppg • 0 24.Open to production or injection? Yes ❑ No ❑l 25. TUBING RECORD If Yes,list each interval open(MD+TVD of Top and Bottom:Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): N/A N/A N/A 26. ACID. FRACTURE.CEMENT SQUEEZE, ETC. C! RECEIVED Was hydraulic fracturing used during completion? Yes ❑ No El DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED EB 0 6 2013 ' 411111) 4 AOGCC 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): N/A Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Test Period - Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate - 28. CORE DATA Conventional Core(s)Acquired? Yes 0 No❑ Sidewall Cores Acquired? Yes ❑ No 2 If Yes to either question, list formations and intervals cored(MD+TVD of top and bottom of each),and summarize lithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25.071. Core from 1,527' to 1,684' (MD/TVD). Core bit size is 3.77" OD. Recovered cores are 2.50". See attached detailed core log and core photos as a variance approved in the Permit to Drill. RBDMS FEB .07 2013 . ,AL Form 10-407 Revised 10/2012 / CONTINUED ON REVERSE "PO) 412.°1 �t Orjglnal only 6 s • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? ❑ Yes ❑ No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form, if Permafrost-Top N/A N/A needed,and submit detailed test information per 20 AAC 25.071. Permafrost-Base N/A N/A Quaternary Outwash Surface Surface Sterling N/A N/A Beluga 650 650 Tyonek 1125 1125 Formation at total depth: Tyonek 1684 1684 31. List of Attachments: Operations Summary.Well Schematic. MW vs. Depth Chart. Core Description Log. Core Photos. P&A Photos.As-Built,Cement Plug Press Test 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stan Porhola Email: stan.porhoIa( lincenergy.com Printed Name: Corri Fe Title: General Manager Signature: C .z( Phone: 907-868-8660 Date: INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1b: Classification of Service wells: Gas Injection,Water Injection,Water-Alternating-Gas Injection, Salt Water Disposal,Water Supply for Injection,Observation,or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits(ex:50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval(multiple completion),so state in item 1,and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced,showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump,Submersible,Water Injection, Gas Injection,Shut-in,or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations,and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 30: Provide a listing of intervals tested and the corresponding formation,and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 10/2012 ACTUAL WELLBORE DIAGRAM - PLUG & ABANDONMENT KEEX 02 Section 25-12N-13W, SM API #: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8"structural casing �. Driven to 15' Cement Plug Z 9 8.50" hole to 113' t 'r -r• , ' �, ' � � 0' - 150' 7" conductor casing .�' set @113' �• Cemented to surface with r ' 40.6ft3 of cement (200%OH excess) • 6.0" hole to800' f +r 5.5" surface casing set @ 800' MW Cemented to surface with • ' ,,>ti. " d N ppg ' 9.1 L 0 55.6ft3 of cement �' (100%OH excess) .,,fir 4.875" hole to 1,527' , (No core to be taken) • • 4.5" surface casing set @ 1,527' "{ Cemented to surface with 51.7ft3 of cement (100%OH excess) SZ? tg 144) Cement Plug 3.875" hole to 1,590' ;=; a , 1,460' 1,660' (Reamed hole section) r' •�'.. 51 i4 Bit and drillstring at 1,660' in hole) hole to 1,684' � • '� ; (Left r=: (Recover cores) i Jlr 91.1 Rev 1/21/13 • ' . 44, ob , illillik ,,,•I'mt r 1 4 > 1.44 a. illiia 10, *lit 411111111111 14,:c00,40- ,M 1. , itr' k.. .6 ..,,li „ S 11. e 0.. k `, 4 s ;et' qi°' , 5. . •, ., , ..„. -,.._ . Ai& IIP r'11064, I 1 ----- , I ... , 4 , ‘,................ .„. . . 1 . „, ,..•',,t,'...... -,' .,'",„,- ,,•,-7-....,*, „ ' '-'sys*,,,,r?''• •,' • ' 4,.•,•*:-. •_4, .. ,, . . 40.4% , y / , .C. • he , . . ..F1' ry' I . _ . i i 01 i i i 4r'' -,'-.. - I ‘, ., ? :.. ' .... . , ...„,.. ., , •..• ... ..., .. • . % •• ,7.'•,.. I • .'':' • ' , 1"," , . . . : •• . . . _ . . . - - -,, -• , ....., .. .., . ..... - - ...........- , -- ,----- , ....... . 0 *1 , 4 A t klitosi r. ,x Y LL .s . r µ:. , a.. k 4 axe.. .V Ark p* * ...„U Z r. IF . .1 t x } • • PROJECT NO. DRAWN BY: DATE: 123140 dORriliNTH msm Dec. 18,2012 KEEX02 AS BUILT WELL 6" 0 GRID CONDUCTOR SCALE N:2596603.097 1 inch = 30Oft. E:235221.325 0300 450 600 LAT: 61°05'55.795"N LONG: 151°29'47.022"W NAD27 ASP ZONE 4 ELEV. 741.0' NAVD88 1717' FEL kTo SE14 SEC. 25 T12N R13W SM AK •��.�� 1•4 O F ,056..t �i S, 6 w co. -y � * 491H *�/ z 1533' FSL 1.BASIS OF HORIZONTAL AND VERTICAL � n�1 CONTROL WAS DETERMINED BY AN NGS OPUS - / L1744/-17?-6 .4_ 0 SOLUTION FROM CORS BASE STATIONS KENS / A / PID DJ3029,DL6498 ANC2 ANC AIRPORT 2 CORS �, ':M. SCOTT McLANE; �= U ARP"AND D01812 AC51 STRANDLINEAK2007 4928_S — w CORS ARP OBSERVED DECEMBER 7,2012 FOR I Qic. '•.18th Dec2012.•' MCI NTROL POINT CP 60: SKA STATE PLANEONAD 83 ZONE 4 EPOCHL2010 DATUM ,,,1 I ESs ot4P-;`,4•PN 2596278.8, \AN • E 1375244.792 ELEV 734.726 GEOID 12A NAVD88 DATUM 2)SECTION LNE OFFSETS DETERMINED FROM TIES TO EXISTING BLM CORNERS RECOVERED ALONG EAST LINES OF SECTIONS 25 AND 36. 3)CORPSCON VERSION 6.0.1 WAS USED FOR DATUM CONVERSION BETWEEN NAD83 AND NAD27. _J SECTION LINE S25 S30 S36 S31 KEEX02 WELL AS-BUILT ENGINEERING-TESTING SURFACE LOCATION DIAGRAM NAD 27 SURVEYING-MAPPING MCL w N SOLDOTNA,AK.99669 APPLICANT: Line SEC.LINE LOCATION: �v P.O.BOX 468 VOICE:(907)283-4218 n OFFSETS: SECTION 25 FAX:(907)283-3265 Ell1533'FSL' TOWNSHIP 12 NORTH, WWW.MCLANECG.COM ADDRESS: 3000 C STREET SUITE#103 1717'FEL• RANGE 13 WEST Consulting Inc ANCHORAGE,AK 99503 SEWARD MERIDIAN, ALASKA 15 M• `�. 4.4.4014110 1 0+7,--;.--- / %� - -- ••OL ys .y Z 000 __: . -----41W 2' N 2' 0 . _ -- OOOZ - _400, , ., h- 111.11/1000oro_eiroll..-3----.11.1.1.11::_-_1-_7-- ,.. . - -- -1:-.-z,-_--_ - -j,:>,;,.- s, 4,1° ' 4Z1&, '41: .# A .. °.A.1W-.A°.1 1 - - -- 4t0 WitO Ws owe)... ' __-- - -- ' ', ' ‘, , , \ • 4 / 4 00,,,o '''‘,':1'Od10 a WWil.. 44... '•, , . 0 A Ir/r - tAill Ella Alpo 40- , .., Ad 070 0.00.!.71_MIN77#%44b4C# in. /i' ' ' hihAapi4V W 44 ' . 69: it• it ,..,.,,,, .,,00 ... _. ,.. . ____. , , . • ., . , i/. . wq,.404"4: .".voi\tAx-DEmc"4 4* it -, . . . , . .. ._,. . , ,,,, ,__ iil , , h._ ....... 4.,,, Alp Mil � � �h te''`,-o ! , (�. o tltfl•r.1u�� ,a '� , I w �C2 i -44 r -r,;,�:4 Y44 �y��r'�441* '�, N o0 . 1 1 eiit /// ,/,// ' ii 7-.. , ,, 0. t ,„ \ \ _,,,*o - ,:, � ,,, , ��0�.`:=6_ 6$04***,. 4 ,,.. .. ,,, / 4,,,„.„.,.... .....,,,„,„..44,44,, . , s, , .. ,... „...„,,.„,,,,,,,„.,1„ .,„,,,„ ,, 4,,,„44fr 0,,. \ . ,. ,w, ,...,,,, .0.0 ... ...„,,,,.., ...,,, - --- \-. ...0a......0 0,s- . ,- , . . ,,i ! 0 0 L'RC KEEX 02 EIIERGY Stratigraphic Core Test Tyonek, Alaska Final Well Summary of Operations: 10-04-12 to 12-19-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 10/04/12: Drill 8-1/2" conductor hole from 48' to 83'. 10/05/12: Drill 8-1/2" conductor hole from 83' to 97'. Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/06/12: Drill 8-1/2" conductor hole from 97' to 113'. PU 7" casing. 10/07/12: Run 7" casing to 113'. Mix and pump 304 gal (32.4 sx) of 15.2 ppg cement w/ 2% CaCl2. Displace w/ 252 gal of water. Full returns, cement to surface. Estimate cement inside 7" casing at 85'. Wait on cement 12 hours. NU diverter. Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/08/12: Continue NU diverter. Clean and clear location. Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/09/12: NU diverter line. Resupply rig. Notify AOGCC for witness of Diverter Function Test. 10/10/12: AOGCC Diverter Function Test witness waived. Continue to prepare rig and location for drilling surface hole. NU flowline for fluid returns. Function test diverter—test ok. Continue rig up to drill surface hole. 10/11/12: Perform Diverter System Inspection—test OK. PU drillstring and 6" bit. RIH and tag cement top inside 7" conductor casing at 107'. 10/12/12: Drill out cement in shoe track from 107' to 113'. Drill 6" surface hole from 113' to 310'. MW = 8.9 ppg. 10/13/12: Drill 6" surface hole from 310' to 500'. MW = 9.0 ppg. 10/14/12: Drill 6" surface hole from 500' to 576'. MW = 9.1 ppg. 10/15/12: Drill 6" surface hole from 576' to 650'. MW = 9.1 ppg. 10/16/12: POOH for bit change. PU new 6.0" bit. RIH. MW = 9.1 ppg. 10/17/12: Drill 6" surface hole from 650' to 800'. CBU. Prep to POOH. MW = 9.2 ppg. Final Summary Pg 1 ! i KEEX 02 Stratigraphic Core Test Tyonek, Alaska 10/18/12: Perform short trip to 500'. Circ and cond hole. Perform general site and rig maintenance. Waiting on surface casing. MW = 9.2 ppg. 10/19/12: Continue waiting on surface casing. Circ hi-vis sweep. Hole in good condition. Move pipe every hour. Clean out cellar. Perform general site and rig maintenance. MW = 9.2 ppg. 10/20/12: Continue waiting on surface casing. Move pipe every hour. Clean out cellar. Perform general site and rig maintenance. MW = 9.2 ppg. 10/21/12: Continue waiting on surface casing. Short trip. Mix new mud. Perform general site and rig maintenance. POOH. LID bit. PU casing shoe. RIH w/ 5.5" casing. Run casing to 240'. Wash and ream casing from 240' to 290'. MW = 9.2 ppg. 10/22/12: Work casing at 320'. Unable to ream below. POOH. LID casing. RIH w/ 6.0" bit and ream from 200'-235'. Continue in hole, reaming to 575'. POOH. MW = 9.2 ppg. 10/23/12: POOH. L/D bit. RIH w/ 5.5" casing. Run casing to 370'. Wash and ream casing from 370' to 491'. Work casing at 491'. Unable to ream below. POOH. L/D casing. RIH w/ 6.0" bit and trip to 100'. MW = 9.2 ppg. 10/24/12: Trip in hole w/ 6.0" bit from 100' to 450'. Ream hole from 450' to 800'. POOH. L/D bit. RIH w/ 5.5" casing. Run casing to 800'. Circ and cond hole. Rig up to cement. MW = 9.2 ppg. 10/25/12: Mix and pump 9.9 bbl (44 sx) of 15.2 ppg cement (100% OH excess). Good returns. Gt. Cement to surface. Clean and clear rig floor and location while waiting on cement. S. S . C3� Perform general site and rig maintenance. Rig up choke manifold. MW = 9.2 ppg. 10/26/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW = 9.2 ppg. 10/27/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW = 9.2 ppg. 10/28/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW = 9.2 ppg. 10/29/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW =9.2 ppg. Final Summary Pg 2 • KEEX 02 Stratigraphic Core Test Tyonek, Alaska 10/30/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. Plan to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply scheduled for 11/02/12. MW = 9.2 ppg. 10/31/12: Continue rig up of choke manifold and Alternative BOPE. Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to 11/03/12. MW = 9.2 ppg. 11/01/12: Finalize rig up of choke manifold and Alternative BOPS. Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to 11/03/12. MW = 9.2 ppg. 11/02/12: Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to e 11/03/12. MW = 9.2 ppg. 0 145 • 11/03/12: Connect chart recorder for BOPE test. Test BOPE to 250/1,000 psi —test OK. RIH w/ 4.875" bit. Trip to 440'. MW = 9.4 ppg. 11/04/12: Tag hard cement at 660'. Drill out cement to 720'. Test casing to 1,000 psi—test OK. Drill cement to 800'. Drill formation to 820'. Perform FIT test to 14.3 ppg-test OK (no Leak-off). Drill formation to 824'. MW = 9.4 ppg. r 11/05/12: Drill formation to 837'. Shutdown drilling operations due to frozen lines to water supply. Thaw out frozen lines to water supply. MW = 9.4 ppg. 11/06/12: Thawed out frozen lines to water supply. Drill formation from 837' to 1,077'. Stop drilling to make repairs to mud mixing tank. MW = 9.2 ppg. 11/07/12: Work on mud mixing tank. POOH. Check bit—plugged jet. Unplugged bit. MW = 9.2 ppg• 11/08/12: Change bit. RIH w/drillstring. Dropped 320' of drillstring (wrong pulling sub used). TIH and tag fish. POOH. Recovered fish —complete recovery. RIH and wash and ream from 700' to 1,077'. Notify AOGCC of weekly BOPE test. MW = 9.0 ppg. 11/09/12: Drill 4.875" hole from 1,077' to 1,087'. Circ and cond hole. POOH to 750'. Wait on helicopter for crew change. Perform general site and rig maintenance. POOH to test BOPE. Witness waived by Lou Grimaldi of AOGCC. Rig up and test BOPE to 250/1,000 psi. MW = 9.0 ppg. Final Summary Pg 3 • KEEX 02 Stratigraphic Core Test Tyonek, Alaska 11/10/12: Continue BOPE test to 250/1,000 psi —test OK. Rigsite low on fuel, perform general site and rig maintenance while waiting for additional fuel. RIH w/4.875" bit. Drill from 1,087' to 1,097'. MW = 9.0 ppg. 11/11/12: Drill from 1,097' to 1,227'. MW = 9.1 ppg. 11/12/12: Drill from 1,227' to 1,237'. POOH. Change bit. RIH. Drill from 1,237' to 1,247'. POOH. Change bit. RIH. Drill from 1,247' to 1,267'. MW = 9.2+ ppg. 11/13/12: Drill from 1,267' to 1,407'. MW = 9.2 ppg. 11/14/12: Drill from 1,407' to 1,527'. Circ Btms Up. Short trip to 1,257'. RIH to 1,527'. Circ Btms Up. POOH. L/D BHA. RIH w/ 4.5" casing to 1,080'. MW = 9.2 ppg. 11/15/12: RIH w/4.5" casing to 1,190'. Ream from 1,190' to 1,316'. Unable to ream deeper. POOH. PU 4.875" bit. RIH to 400'. MW = 9.1 ppg. 11/16/12: Continue RIH to 1,180'. Ream from 1,180' to 1,527' (TD). MW = 9.1 ppg. 11/17/12: Circ and cond hole. POOH. PU casing shoe and RIH w/4.5" casing. RIH to 800'. Circ and cond hole. RIH to 1,527'. RU to cement casing. MW = 9.1 ppg. -C 11/18/12: Mix and pump 9.2 bbl (41 sx) of 15.2 ppg cement (100% OH excess). Good returns. `�•�•� Cement to surface. Clean and clear rig floor and location while waiting on cement. c..3) Perform general site and rig maintenance. ND of BOPE. Cut 4.5" casing. NU BOPE. Connect chart recorder for BOPE test. Test BOPE to 250/1,000 psi. MW= 9.1 ppg. 11/19/12: Continue to test BOPE to 250/1,000 psi —test OK. RIH w/ 3.77" core bit. Tag cemen at 1,050'. Core cement to 1,097'. MW = 9.1 ppg. 11/20/12: Core cement from 1,097' to 1,330'. MW = 9.0+ ppg. 11/21/12: Core cement from 1,330' to 1,410'. RU and test 4.5" casing to 1,000 psi —test OK. Perform general site and rig maintenance. MW = 9.0+ ppg. 11/22/12: Continue to perform general rig maintenance. Core from 1,410' to 1,527'. Circ and cond hole. Core from 1,527' to 1,549'. RU to perform FIT. MW = 9.1+ ppg. 11/23/12: Perfo IT to 14.5 p2gy„Achieved leak-off (LOT) at 13.6 ppg EMW (350 psi with 9.2 Ci 7 ppg mud at 1,527' shoe depth). Core from 1,549' to 1,569'. POOH. L/D core bit. PU 3.875" roller cone bit. RIH. Wash from 1,347' to 1,527'. Ream from 1,527' to 1,569'. Circ and cond hole. MW = 9.2 ppg. Final Summary Pg 4 0 i KEEX 02 Stratigraphic Core Test Tyonek, Alaska 11/24/12: POOH to casing shoe at 1,527'. Circ and cond hole. Ream from 1,527' to 1,569'. Drill new formation from 1,569' to 1,590'. POOH to casing shoe at 1,527'. Circ and cond hole. MW = 9.2 ppg. 11/25/12: POOH. LID 3.875" roller cone bit. P/U 3.77" core bit. RIH to shoe at 1,527'. Circ and cond hole. RIH to 1,590'. Core from 1,590' to 1,604'. MW = 9.2 ppg. 11/26/12: Core from 1,604' to 1,624'. POOH. RU to test BOPE. Test BOPE to 250/1,000 psi— test OK. P/U 3.77" new core bit. MW = 9.2 ppg. 11/27/12: RIH to 1,600'. Wash and ream to 1,624'. Core from 1,624' to 1,644'. POOH to shoe. Wash and ream from 1,574' to 1,644'. MW = 9.2 ppg. 11/28/12: Core from 1,644' to 1,646'. Stuck pipe. Attempt to free pipe, parted above bit (1' fish left in hole). POOH. P/U 3.77" new core bit. RIH to 1,556'. Wash and ream sand. MW = 9.0 ppg. 11/29/12: Wash and ream to 1,645' (top of fish). Circ and cond hole. POOH 210' above fish to 1,435'. Mix and pump 1.25 bbl (5.5 sx) of 15.2 ppg cement. POOH. Wait on cement (planned 24 hour wait time). Perform general rig and site maintenance. MW = 8.7 ppg• 11/30/12: Perform general rig and site maintenance. RIH. Tag cement top at 1,320'. Core drill cement w/ 3.77" core bit from 1,320' to 1,350'. MW = 8.7 ppg. 12/01/12: Core drill cement w/3.77" core bit from 1,350' to 1,420'. Circ and cond hole. Core drill cement w/ 3.77" core bit from 1,420' to 1,645'. Mill on fish to 1,646'. Core drill new formation from 1,646' to 1,648'. POOH. Ream to 1,527' to 1,596'. MW = 9.1 ppg• 12/02/12: POOH. Ream from 1,527' to 1,560'. POOH. L/D bit. PU new 3.77" core bit. RIH and tag up at 1,592'. Ream from 1,592' to 1,646'. Mill on fish from 1,646' to 1,648'. POOH to 1,626'. Ream from 1,626' to 1,648'. Drill new formation from 1,648' to 1,654'. MW = 9.1 ppg. 12/03/12: POOH to 1,570'. Ream from 1,570' to 1,654'. Core drill from 1,654' to 1,684'. POOH. Lost 24' of pipe on bottom. RU to test BOPE. Test BOPE to 250/1,000 psi. MW = 8.9 ppg• 12/04/12: Continue test BOPE to 250/1,000 psi—test OK. RIH w/ bit and tag fish at 1,660'. POOH. R/U wireline. RIH w/wireline logs. MW = 9.1 ppg. Final Summary Pg 5 • KEEX 02 Stratigraphic Core Test Tyonek, Alaska 12/05/12: Continue wireline logs. RIH w/ inclination survey. POOH. RID wireline. RIH w/ drillstring. Tag fish at 1,660'. POOH to 1,570'. Mix and pump 8.0 bbl (35.5 sx) of 15.2 ppg cement. POOH to 1,050'. Wait on cement (planned 12 hour wait time). POOH to 1,050'. MW = 9.1 ppg. 12/06/12: Continue to wait on cement (total of 24 hours). Pressure test cement plug to 1,000 ! psi for 30 min —test OK. POOH to 50'. Mix and pump 2.5 bbl (11.5 sx) of 15.2 ppg f` cement to surface. POOH. Clean out cellar. Rig down. N/D BOPE. 12/07/12: Continue N/D BOPE. Cut casing 4.0' below original ground level. Structural, conductor, surface casing, and intermediate casing cemented to surface (no cement added). Weld on abandonment marker plate. GPS location: N61° 5' 52.7", W151° 29' 54.0" (NAD83). 12/08/12: Rig Down. Linc Energy coring rig#1. Helicopter sling load equipment and materials off location. 12/09/12: Rig Down. Linc Energy coring rig#1. Helicopter sling load equipment and materials off location. 12/10/12: Rig Down. Linc Energy coring rig#1. Helicopter sling load equipment and materials off location. 12/11/12: Continue rig down. Unable to fly to location due to poor weather. 12/12/12: Continue rig down. Unable to fly to location due to poor weather. 12/13/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (1 load). Daylight operations only. Discontinue flights to location due to poor weather. 12/14/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (19 loads). Daylight operations only. 12/15/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (1 load). Daylight operations only. Discontinue flights to location due to poor weather. Crews worked on storage area near Beluga. 12/16/12: Continue rig down of Linc Energy coring rig#1. No helicopter sling loads today. Crews worked on storage area near Beluga. Final Summary Pg 6 • • KEEX 02 Stratigraphic Core Test Tyonek, Alaska 12/17/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (13 loads). Daylight operations only. 12/18/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (14 loads). Daylight operations only. 12/19/12: Finalize rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (8 loads). Daylight operations only. Crews demobilized from site. Final site inspection and remediation planned for spring time. FINAL REPORT. Final Summary Pg 7 C "FTINGS LITHOLOGY DESCRIPTIr-S ..r. 0 Linc Energy Operations, Inc. 0 Confidential ' - - - ' EflERG Project Area: t'/.4214,1,.L. 1,..)c_ec-•54 a.ve., Hole ID: • K6Le 0?..- __ Geologist: 5-. K,.-_E0 1 _ -..'.1: L--- - - TD: Comients; 5lle ApT _ ;eBOW: _ i___..._). _ Date: ia-ra-1 L — — Death tCet6 Thick: Seam or Graph Lithology From: To: Formation: Log Code: Lithology Descriptions i , reti — Itiifw_ ...,1eir,.._11_ ...... ).-11, 054' ____ _........ z 36 .1,..4 ,10.- gime_ s a ...... -2- & f 00 i°as ,, ), t ,4 I o-t— - es ii IA ,I - -1 , ‘ _ "z 61 to _ ; O. 6 Ti-e• cit. 1 t‘ , --71— "- --- ---__.— ___—_,----... —______——.---- 1,-- t k ,, 1 — ,10„. .._ „, EN 4194 )4 614.1-1,,,s 5.#,-14-••• ...F ,.u ,4 ±„j„gzw„j: / 10 ._ ' <It 5 — --------- 3 „i o' -, IN* ,r1,VP-e.,, 5A 1 ___ ——___ —... I ,, 54L-,7iL47 joikcetee."1 ' • S c 4. ti 1 dee, , .,forti_if sg..p...1 ,Iii1,,coi;datril 1 Trt,474-.-E- -1 , to' S- -f„A_A_ " ,.....__.. _ __, 5,...,1 ,,,',67-e,-0:A4 . - - - r-,.) tkeiltp.ii dol. A I 04-z, - -f.0 .2§6- to /f4 ri. 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(-- --v-- ---- ,ct.:.--- ,d.f.V.E1-7, f, rf,tc, 5 f _, . b kr...',..it F-All jkic.... a Q#p... _ Cif tit('ty(OF-si,1,7,. ,,s.L — 04' .51110— 76 .W - to .c. “" i _ . _ . . ____ ..... kw, 19' r i " • . .1) q 1. 0 0 q 4 54 ii$S C‘4A , 01 4- ci.60 toe- . Page of ck---ITINGS LITHOLOGY DESCRIPTIr 'S • Linc Energy Operations, Inc. • , 1111C Confidential EMMY Project Area: Hole ID: K E .,24_0Z.. ..,,. Geologist: 1-1 TD: I Comments: t,ekLiA3451//ft,/,44rloac.ifit S.35 BOW: Date: _ Depth Thick: Seam or Graph Lithology . From: To: Formation: Log Code: Lithology Descri+dons !,0 111- t)dt +ZJdd Cere.te: AAS.thetta tot Q rq ;1-3 10' -4:it 1,e4e.6 rtt 1/Pt IS5.,1-4 4.4,...,s, ir , M5/9 tt Oa ry t 5 r(2c p5A-R _fr -4-tiL et 4-- ' 51 ,,,ijvi ir. ,g+.1664. Iv t..Aco i rq gc t C ' IN /1 _?5 ___Iicq 5• :;f: ASIA6-P(4 tit-M_Sk4.11011 t ,......c.,04fat if,SSIZ 1 5;ff,t <5 LE 6,1,. 1)F-04.4 _.;P-..--M, --ZZ i6? rz gqz- c' lk ( )1 8g1viffr. 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Iv, (OG - LI?- ____ to to 10' lc ..".....d_palicr....s (0g t _IP.a...,_.11)" 1:-,41,5 NI vf:':-T;Q, , 7 , . 101__Jill- 22' M 1.-F cory J!J.1 i I 2-?...- s-‘ . -- lir#6 14. t,; OF'ill , k, 41_1_1- 11147_ 71:**" w-rz- tici- 5;1ii, /45 L+.4 ) //F7P, s P. jt‹-q- _li.tal. /LP` ....s_iri L. u4,cof.,.._,IE-: s ._ likl I'll- S' = ;-1::4 , • /1.' t'yi F-04isrl-4.kx,. tuff c.1 ILTL_ __n /0 5-'..7,-, •&-'-- ,,,_____ 'g #4 Dizsoli+P--etipt- t,,, ith t ar....c c....i il 8 Z.- liqz -,,,, 1 0` ;-..-r?",;,›.-.:,---,,._-•- S'r S fil4 )E6 54, I4,-4(21. ilL4--6t _LI 12,, rzot JOT' Tic. _ )zo z i-Ea T 7 ' ___.0eatiP-Fi -vsr-/4:5P,4 1fe 0-t-,43-sc_62,2_ 1 7")--t- Lail io.L_Vilfillg"--- col r _Fitil !lc.t- p4k._..... '*\,, r. _1/4,____L-44, -- 57.it.13:5.. _tf. i..041144-7111:: Nx,A -A rill .... 2.____ _ 1 0 '--- --...--- SA Cs m6.r..f,.VE.4-4 Pr f'''4_ Ith 4- 41'i 1 i Tr4 C041— efr .1 -15—.1-, —KIT- — — A 4.,flAe rH5g'_____ VOLL: 15- - -5S00'4;41+44*-1\Z-k-,:tr;.i68-7- I t-t4( j4,1 Fe Aaftr0/1-111+5,--S.A.,/ft to i a 4 7 VLSI' 17-14-• e5;4e-,9 D Pi6r4(14UF- Ail 54,-5X1 1v11.2 4-1-z. ,7 irc. CoA. I Page z_of / ` C' Linc 1 4 „, IHC � - -Confidential '�� E NERG0 Project Area: _ __ ________.___ H�� TD: _______ -- Comments: 1)t f FIN. BOW: --_____--__-'--_'____-_-___-_-__________ Depth Thick: Seam Graph Lithology From: To: Formation: Log Code: Lithology Descriptions 13 t 13 5 ze 5,1( 1- 1 6 4--V. : P"''``` . 4,6 , —X 5, -nsli.7_1-5,121-.._ --- .a357, 1.p-1 > Vi-- ,..1..±(Qrv, ,,_j/EzEr. .g...,_...._____......___________ ..41122: 411-Z_ )1' rWZ- Hici 5-. 5,7-r- t4 &ht __--__-_-_ '__-____-_ ___-~__.-__-----______-_- ___---____--___-_--_-_.___' -___-__________--_ .----____- - -- ------ ---'-'--'--------- -- -- --- ---'-'--- - ' --'-------------- 37 e _-2 I o � ��`-_-_'______-_____� _ — --__'__-______�_'_ ---- -__ -------__-_--------- ---___-__-_----_-_--___- ___---_ --___-_-_--__- ^ . --__-_ ~ '--_-~ _ ,_ . _____ ___ ----------------'--'----- '- --'-r--------------'-----'---------�''---' ---�--- '- �--�-' -- ----- -------------- ---------------------- -------- __--_'_' �__'__'___ __- - ________'_- __'_- __'--'_-'--_�--'~- ___-_____ --_____~___-_'__ ,__.____' __ _ ___ --_.__-____'___--_-_ -----— - -- --- — -- - — - - --. -,.--_-___-_—_ ___— • _-____'_- ___ -' _-- � _ _-----__ ----------� _-__-____ _ __ _---_.-_----_--_---___-__'_____--____--_'_-'___-___ __------- -_--_-----___- '-___--_----__.___ _- _----- --_-___---_---_ . . ___ _ - --_�_- ._____' __ A _ -___-__-___'______-_____-__ . --'-' -- -- � --- ________----___ — -� __' '__-'__---___-_.__' Page ~» CORE LITHOLOGY and •EOTECHNICAL DESCRIPTIONS a, Confidential Linc Energy Operations Inc. , LH Project: l�r �., °° ` -, t�_ Geologist: r c_�l, • ,1<oc (,3r. __ _ _ - - Hole#;5E(.2(-0.z. Date: P1/ZZ11 z. _Driller: Ariel Other: GEOTECHNICAL I LITHOLOGY tll 'C i1 C m = u Q a 0 rc tr 9 xi Q .0 L N O - 0 U O °'!S a d C D) C L d 1 a £ d * * 7 a Q a ao � a � � E 3 c 0 0 i ¢ a CGs on c7 o a o Descriptions us ct m '.' —i4t0 7 1 cr.- (j _ { - C1) ' _ 1 — Ii- f e" ,4/..,01.osi.0 : — —ISiZ. E ' • _ _ 11cz3 is . _ i - - r _ - _ =1513 a _ L — 6 — I r I c - 1 —- F ISZ? :- C -1 cz$1 _ Page 1 of_ CORE LITHOLOGY and •EOTECHNICAL DESCRIPTIONS x •; . Li Confidential Linc Energy Operations Inc. (DERBY Project: �£} _ . .�—�._ Geologist: _; Other: <U r�, r,- �° o , --- �_, --- — Date: 1( Hole#� :,4 EC o Z 1 Z, - —Driller:j�n 4{ - - GEOTECHNICAL I LITHOLOGY m v0 01 0 CP 06 0 oti Y - 8 h rt a W "" NZi -1 0 co co cc ce - ai o .Z r awi o c.> 0 v o 0 0 .74 N C 7 C L J d 7 ci o f ¢ a CO o c7 0 CD 0 Descriptions in o$ c(Y t ief pwt4ry N'{, ,wed s-1; ,mss;st . - RAJ J _,_ .r1 r SLS ----- _ _. --TS.__ ._.. TN — — ,s., _ — Lo 4, care. _ - - - .. - - - . _ _ .. _ _ . _ _isp c ( \ - -6,1 v._ ..i, 4.-1 „(2.-v,..c-A Go ve.-:.... — —1 - �- - � - - — z —1S3Z — — - - - d 3 _ u t —'ce — C , — s. - - — —gig — — — -1;3 — — —14..% — — — —15-4 — — _ I�3`� 1-`cis-c >!=' - - i lts M ; 44 Qat lr,""-.--.. Page Z of CORE LITHOLOGY and *. . •EOTECHNICAL DESCRIPTIONS ., c Linc Energy Operations Inc. 7'" Confidential �_ � MEM Project: Geologist:_=.�;: ., ,�4 o-�,,`y Hole#: J )C 0 c. _ Date: - _ Tit _ . __ :— Driller: 4Nd � , Other: GEOTECHNICAL i LITHOLOGY m = 0, rn a.2 0 0 C $s e1 to a 0i �' m ors 63 it y O y 2 L7 H +-� CD E 0 $ y aco o rl d _ ce a o Oo e6 E 0 m 0 ° CO c r.. a j a £ - * * = is cs 0 1- a _ 8 8 o o Descriptions m 82✓ r r .1 � J - . . __ ,S _ _ - . - c - - - __154„17, .__154„17, . , — — 01 • - - ' r :.. t,4 J (-eaM ' fa4 15j- --� s � . f ' z _ � -- 5ale,p K&g((�3), ss / { , ', e1 : oo a` e- ZzeY txfe , i= . ,4g ,� - - - - .1 • ,� S 5 04 6,ir (A)-5) UPI 5/2,-R, - - gz —I Y //c1" Y J I — — M ....• , ( kTt'Q � j►1op(c...tq = -lckt :_ . 1 I. - . - . . - . - - -1 ‘‘05r f n _ 1`e ,r i _ ‘..,_ - - .. - Page of I CORE LITHOLOGY and ., •EOTECHNICAL DESCRIPTIONS i Linc EnergyOperations Inc. �� . ii nic Confidentialp a. Project: Geologist: 1. C 4-10r� _ iof Hole#' E KoZ Date. j r,.ZTL —Driller: Aivill Other: GEOTECHNICAL I LITHOLOGY Z C1c. J 0 vy 7.. It *orsM Y = 0 N 2 I- N cw to m r2 ce 11/ atS .� L o o °8 m al 0 o Ca aa, E io o f n a a a E c x 0 v v F -¢ a z 'i [�7 o t7 Descriptions in re m ISIS r0 } 3" ._ ./... — ,5c0 t` ' .,.R� r f i a,es] tlnlQ✓.aM!,�af. — 1 V��.. - Os' g Lr - - n ts ,. — — Wtt f, - .� ... ,5 __ _--__ _ - �.c L55t-5- 15 5 - - ip, idt? C.LtE1t elk,v -t gar... - ^" : t `) tiff — F - . Y . '.5‘;, t — — f . 159( € — — I . 1555 -0 4. -- 4 i NT 1.' 1rt.e"LA t' - - + 1556, 1kke1� t A-to - — — ~F "Si4- \ l YS" •rilc11vIIIN)o -., v,�> 0-,..t. 10...-ft ins oro -yy 7 c''t rs a.r.A. e..4 If ,-`Mix 6-D M. N.. I 1555.0 - 1554".0 : lssg I . _ I Page V of CORE LITHOLOGY and 0 3E0TECHNICAL DESCRIPTIONS. p Confidential Linc Energy Operations Inc. Project: i.-INk.... tic_el Geologist: izre.rci."44 ' il;t_rofice,51;4;e"e Hole#:! - '2 Date: a/Z2. ----- 711 --- --- —Drifter: A.Z7-7.:.-To'e: .-::,..-tti.e 7:17-ff.: - - - Other.--LITHOLOGY ---- GEOTECHNICAL co 0 0, co 0 0 ED It o 12 w t a CO ,..) '6 o 0 0 xi E .E., - 0 ,D A 2 0) cc zii :E" o o Col °-, g to 8 7, 0- d- Et- Cl. II 12 4) E c x .= o o a 1- .oz o_ cc i 8 0 0 0 in Descriptions a 2 8 . - - - • --- - IWI -,- . I . -. }.. - . _ . z, ' r . = .., ' ... = , r ......ifb 1 . . - ... . .. '... t • .... ".." _ A _ . . . _ _ _ . . x/c) ,e6-e...‘w --ie.y.z..e::c _ . . . - . - — - '41 —I 541 t . _ ticil-Litisii:,n,;" il ,-r*. - - : ,.., . . - Aolv _ . $;....A.e A,.1 6 e.. 0:::i .14*r,:,°r*;•;:, !,•:1,,.41;f.,*, ...,.. '-- i , — fir-3`" i.)P iscnt. - II) -,,, - haw,.defA A.1 ic,g. 4-.0 JO / I &&opr 6,41147-tAZ; - 15 - — t - . _ __' • - 1 . . . " _ . - 1 - . . _ . — : 4 EM=. .... .. t .. . M —' c- ' ! - - 6. .. .. . . . _ , ! — — — — . . _ . - - , - - - - _ . _ - _ - _ ; • - . . . - . . . - . . . . — — — " - Trse core bekrteb.ow* . - i COK ba,Mall. Pitak•t.1 co t?..JA,34 _ . Li,-(-- oo.,kkh a.Z.,- )or o4 A- c.-tem-4- - _ ti. atet) CgtAA.-CA4l_ril 1 4 AAA L3c , ... m ,. ,I , up sio 2,s" ct 1e4"i..11x,, 1'j 'b, - hpk,,„4 rot oil hat- - . _ . _ 1 . _ Page CORE LITHOLOGY and •3EOTECHNICAL DESCRIPTIONS• J ti a 4 Linc Ener Operations Inc. ' 8 Confidential 9Y p . at Project: L,.lt..e. +VG.t�r _ _Geologist: '5:,i1 f.. c..r` leaf R. Hole#:ke*702 Date: �`/.',1 z.3/12 Driller: b0 u 3 L.., Other: GEOTECHNICAL LITHOLOGY U o 0 m N yf 7r o O G if CA o� m Q V = O +rs G. * o ¢ O N 2 2 L 2 g 01 C1 o o Ce W v C aei Q ` e- m cl ❑ v Y. m oZ1 v E e ❑ Q Cj .2 s Q. d _' Q 4. o it X 0 0 re H qS 4. 2 p 0 LI p CI p Descriptions U1 re CO d : _ r . G'x3 tom' - - 7Q '°` ` )scq �s � � �U�ta - 4-o�,saAdc� s, p�bl.�c - -I I-2444- - )d-kc), "O -R - - +3 1, 1 r'o+a n� b i - 3s8 b4Oc t.- _ - - 5-1•s-et+I t lv+as /� - - 11.46-tu'alit ..'"`-/6. fid C'C' n: - - - —It 2`f Cot..4►,aue wit 4.t,"-��v - - - —1570 b`Ewt.a-40Vvoe_ �efe.� — — - 1Li10"- tall IA Wal.. tot+0 - - - p�� — 6-Gai4e+"1 E3'a l LS 01� — 4.k. eit,If 1:01.)4 c4o4t4ie n _ c... _ - -bh� Rea-M4o ►tSb,-H.role. � - -_ Ci — ti y - - x - _ . _ _ _ . _ -. _ _ — N. _ „ i _ _ -. 15-qo -iccf0 w.%ly J' :II 1/4.,/licCut,L" ' " qa - /�' �$ , /4 /ry, j/F5K .A _ - eit SoT T P rr _ _ : ,tt - - - - —1540 + Milo re�Er y 11.1+ r1d,a .- _ - 1'4�r12 % 0 P R Re .3 o� -for e' too�c So ks-S - - - .Q eG- Caneey� r ,r( „-3`,frr.Ve.( : 7 � v'° -1641 t a at‘>ys #�c/ - - t �b c.r Aja,j' �,,�- )4 20 P Q 2$ ql K4L3 Ir 4+' 4«e� tit - - / - r : ' t S � l , , , 5'�1 :Or. - . 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UCG_ _ _ Geologist: t,ele_f — , ______Hole#: K,�' oz- Date: /1`-2. -r7. —Driller: (3 ry ^I. a_ Other: GEOTECHNICAL LITHOLOGY iv 0 en c v CO 2 CD $ m t °7 = o o E o Q m p' - is �j - y 0 . a J ami a C N 4- V O U O ® °'tS 41 IX 0 R 0) C L L _J L Z U 4t tliOO) C ° Frg $v ) ¢ d = o o Descriptions u) a Jn TT -I59c - - - r - _ )+9JM J _ - )1 . .1 - -1Sg7 - - - r - - - r - - -15"x'8 - - 1 - - - f7"° - - — — — — — —1601 — — i \ ,_ — l' - I \ . - • i*} n hit,, ?tA...4ye&�Att• rctti-xe4,40. d4 _ - 1!� - - Page 3-' of CORE LITHOLOGY and OFEOTECHNICAL DESCRIPTIONS., ° U"C Linc Energy Operations Inc Confidential : =-, el Project: L(IU C.- UG CI- Geologist: A ,; 2 Y‘'',.L.4.34 s.22 1 ._w Hole#:f eEAD? Date: f I/2-51 1 2- _ ____Driller: /j' q Z.� a Other: GEOTECHNICAL `J LITHOLOGY 2 c• i . o ° c cg y, c U m a ,(n to w wJ- Q co (204) a Tx 0k 10 co U U E- ¢c' a _ 2. p p Descriptions `CO W, m - C? Ct-.14,�,t:7,7'� l�ur<fi`Cs09rna), Mabe - - y iJ'' ,..cr Zi vxt f L �� /Matrix., F-L, 54-StZ - - 1 -fro$' O,S- J„,,,c. t1G.`5 — — CS-O , e,r-a C.d TafT -.. �C - - q - ,srptt:1Ak) 6F15RR - — - '` 3.S - - - 3,6 - - Q X l _ —160 — - - k .B - - - — —11,08 — — — -------. — —(61 --- - - S 3o P f (1 TZ., - ( �� --� O �:� (-5 NI j !Jrk„ 4 /VI - �- - -(6IIC - - - —— ___p_/_� __ - ,2 55 r�''I 1 Stu f"�v'y r.i�+ '�s A - i _____ . — —Ibi f — — - - - - -_. i L-04 ° e .. ._ - _ ._ . . _ - _ ,i _ . . ii _ _ _ _ . - - _- . _- - -�rg13 1 k — — - - _ _ . \ - _ _ _ _ . , - . . - , 1,4 4 \ E),-)1 0.5 Pt!t3 10 1 b I itt,a - Page%of CORE LITHOLOGY and •EOTECHNICAL DESCRIPTIONS i1111*, UDC Confidential Linc Energy Operations Inc. -..:-/' 01ERGY • Project: L,4 c (At 61,, Geologist: .��:.y_��__%_ . ._1- jA1 faff — Hole#:l� x.°z.._... Date: TI 1,7 Driller: b..., f.,,-,, Other: GEOTECHNICAL LITHOLOGY J J m 0, 0, 01 C �' t I 0 O 4t j — 2 N Ra .J = d .L.. _ O c C� Tcc re e. G U d 0 8 W J J l0 8 , c 3 c a a O. 4t4t@ O v iv a d` a = p o8- c.D p Descriptions tR CC m $6 DV-41 Ntt1 -M, ;g.SA - - a G r✓ Glt Z Ntccr! iL c 1a,1,5 L=J47na r> - - L — — tef - N jolt , — — _♦4 6:) Ei ' 5 4krsfate., (n,v 41kR/44:K srtZ zji nom}® 111111. —Ijirss. , k...4 , Ca 6Ao.Ca-ay5 l/- ----,�.rr .ra iv SS Gr Nor -G, Sir -SR _ - •4aAr$aMinqu,t t,s Mr,n,r �';ss:kN i",,,. Clays44e of 16/1.3 - _ , -` 1(4 - C� ' Q t - K r { ^Y7 t� — ems. — (0 (' . . - •. _ Turnor Hari Cva` TOW1. ioh,R.LCK AM) - "r-. .S Yi{reevs J - X . aCJ . (y ` . . Ar .Ilac�?��i aF� l . - E L+ i' f t 3 - Ifn2q-v - - - jn' t J.4e. v &cie bard r�bte,MOM/ e+rtv Ies o:w; CS' rie��..n�lry)c-C Y.Sore) S 1( i� ? r(JifT�iyr aro �Yr1 � .e o P RR° S :.'y: , Page 1 of `'' CORE LITHOLOGY and GEOTECHNICAL DESCRIPTIONS` Linc Energy Operations Inc. x, ConfidentialILIFIC r enema Project: Lln _ 1 -- Geologist:_ - _..-_,. Hole#:XEE. OZ Date: .i 1-27-12,,, Driller: Sria�h Soni-; :_.w� ___, _ _—Other: GEOTECHNICAL LITHOLOGY as v 8' c IJ6le: SP 1&`l, ol+-4'lle*c -lion* ht `� Ce' r a curt, L�iro t639 '/63y but uic� t its aa) r 2' . tf z .?7, o ch.rt 1 rod 4-cola slovol.i Rfa a a It • 8 -1 C 0 m N r) d J +�lj reoie.O.1RJ1 411;5 Prr1Pr m E D y, N m (A W y frc4 co 0 v ac �s m 0 o s t II jz6 Tb# *- Bc�f' �1oa had °' °� "= ` VI o o d a c m o E a co .a a n rP,a.�-6o �►ir Cf 6600 i c X ✓ U I- Q a z pm $' Descriptions ro tt qp Q - - cs,me,i -162. gut Carbons .cc e — - . ter 35 — - - -\- - Bk �� - ,-,, ss, ,►. .II,c-,5, s°`F4',sil' — — �° 65 Soft __ .1�5 , , — . - ,CS rhea car j,4—h-0), t^k4. s -,s�Q - - - �° `1626 ' . . - - 16x6.i - i - - — --10-1 - : -_ 0 - - - 4 - . N _ — — — - - - — '4 4 — Last CARf`E,+ llcss+�,�a. -yQt*; A — ` -_ coIl(e ,AA4 t h .6a-41-re-AL - - - �`root C,oiUc i Dg )05G, Lti4.Q* - - iNI —162q scua r wig 001- (-3q4 bbe - - - a l�rt! : - - oc - - - - — I — — —1 — — —1631 — — - -163z. F — - . —)633 - - yb3 Pin) o$ Rvn }Z._ r : Page 10 of— CORE LITHOLOGY and •GEOTECHNICAL DESCRIPTION r! Confidential Linc Energy Operations Inc. z ' n' Project: r,__E_Da _.—..__�__ , Geologist: {� Kosola�Sc3►(aster —_,-- Hole#: 1(i; o'L Date: 11-Z7-{Z Driller: •-•&„)-F,, Other: GEOTECHNICAL LITHOLOGY m 07 U 8 0 O a. C > C U y rt r 2 Ll. .'G.. -J N 01 vl _ C7 W J cl 2' Q.' II. 4K S ; ' .oV ai O v a c� O Q �k in o . of G j G w Q =-I a o 0 a - ¢` o. o = o 0 a 0 p Descriptions w c2 $ - `?'v S.I1sfo✓�e pct %r NSA (!F - 4•......�p t ' ^�• —Yr,3S Car 1 vea'te eo+'c.P.41 — — _..— - 5s, d r� N5. U P-..�, 5.4-5 R — C - i {kry c r-f 1 Sicler;{e- ci4i,';f .,140i7100.7 — ---- -i--, .436 -.. -1637 - - - .x) - - - �- - - - +� — — — '� - - - 's D - _ - Lca5� Gore . - - - —1631 ill �,, — — - - k�•L.c 11 0 A t►ti''' - - — —Iba — — — —16?) \ - —164x — — —I69 3 - ' i-1aw{_ — i-,,0 ru i - _ - L-b5T G8(es.�, sLtED tot" - - -(tfl _ , - 6F s`cl,c4.'ir $4 - - VI - `4,a W. Page 11 of CORE LITHOLOGY and , , 3EOTECHNICAL DESCRIPTIONS 0 ; Lino, Linc Energy Operations Inc.Confidential ,,,,'+'' ar r Project: 1,7.n C.- {t-4?__._ . Geologist: � n1nse- ' Hole#:Y4f K'�Z—-- — —�_� Date: Ji.,7_ IZ,. Driller: .t,&► 1a Other: GEOTECHNICAL LITHOLOGY ILI 3 z ° o 3 c ° om oti o 2 ~ c2 E * J — m r m c oo l. CU NN U) UW _ . Q 12 4:1c2) 2 'C = m O V V Q N 06 y W E 0 o k C of c .G. Ola , J c fi- 4. It 4t N °o U ce 1- Q a et i o f A co 8 Descriptions cc°n 2 m —165'5' — — - -7_1(610 OY A:_.1ac' - - - _ / — — fi ..�. t - _$ ,_ 53 , .. - o V1 - - - = CORE LITHOLOGY and •EOTECHNICAL DESCRIPTIONS` 41111:: Une Confidential Linc Energy Operations Inc. MEM Project: _1—trn.4._ UC.[-r Geologist: ,c_1".t0...,sf4.c4r Hole#:k.,._ c* Date: 12 1 3 / 11. Driller: -1 .v-‘a,ke, r_ i Other: GEOTECHNICAL LITHOLOGY N "LJO 0 fA °tS w _ o a gQg-� E m C § J E O :E. ,E Qi to .al U) W _I -' ❑ � 'O 5. C ig O U 0 O N °6 2 N 0 a m 2 L J L ,., Q * 4L tin d c C 7 Q J d. 2 of...) re I- < a o ' o 0 n 0 o Descriptions en 12 a$ —t tdo5 r — — . I. i - Loc � - roisez 1 pc rl w kk ruNK. t44 �e - —lbs aT r'"c`A i t• n =: ? ., - - - - 1 t C > CSR,e,�.-1 .>' t : " fl = i e�,,T i i — V SIt4.-t°tjf - O - ? � C47anfltib- nt V :eti t Mk.. - - i: \ - ., C -wIL _ - X Qt - - -1b71) \ I arrl "'"" 01 i " iii . r 1\sit., ow r f1- if '. - : : : 167 �� 01 _ Page 1 14 of CORE LITHOLOGY and u , 3EOTECHNICAL DESCRIPTIONS. .i'x Linc EnergyOperations Inc. �, = Confidentialp fn� Project: L. VJG. QC,C1-...„ Geologist: c.;,J„\boSS_ Hole#: & Z Date: j 1»1 3 II? Driller: ".rr+ke„-,:' o k 0 h c-/ __—.Other: G OTECHNICALLITHOL Y w5 m .. . U o 0 _ W J J CU. j tp 0) C m of m w e c ' FZ- a o E o Cu'q J <G 0 w OC 2 d w -a 0 m 0 w C 0 4, co w 2 U) W _1 - 0 U) O c w 0 0 0 0 0 ® ad to LC d 0 c c a a t E c J N x 0 0 o d ?. Tik. c 0 U re N ¢ a ce = p c., E 0 p Descriptions co [C' m �¢ - :-t6�[s ; - - - i ! tom,;,-r - — -ho?b 9�a . l✓`�Lt, .'irs - - \I ce7i....i,v.-,at cqre.2._ ' - - -1477 - - i - — — — - . © - - -Ai -N7, - - - -1 8 . , -_ - - : . _ -1 t _ _ r 14' r-1 Lvre. l., — - IC ' ''H rCx.' '-4, t c t,m - . — — e", 'ttt dam, cvi - . - s7 i ek:.,,'.:w..�rz'.,...'A %,,1 ^ , ,- . t I A k 0,>tr4t. trlat - - 4-h rta t as VN, - - LO c\ V\CAe. a, .. t:. ., !`L_f€ja f Z. Page 15 of • KEEX 02 Mud Weight vs. Depth 0.0 KEEX 02 400.0 _ _- 800.0 \11r a U i+ I- Gl L 1200.0 1600.0 2000.0 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 Mud Weight(ppg) • gK EE 02 U nc Strati ra hic Core Test EIIERGY g p Tyonek, Alaska Weekly Summary of Operations: 12-06 to 12-12-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 12/06/12: Continue to wait on cement (total of 24 hours). Pressure test cement plugto 1 000 ) , psi for 30 min —test OK.POOH to 150'. Mix and pump 2.5 bbl (11.5 sx) of 15.2 ppg cement to surface. POOH. Clean out cellar. Rig down. N/D BOPE. ,4P( 12/07/12: Continue N/D BOPE. Cut casing 4.0' below original ground level. Structural, conductor, surface casing, and intermediate casing cemented to surface (no cement added). Weld on abandonment marker plate. GPS location: N61°5' 52.7", W151° 29' 54.0" (NAD83). 12/08/12: Rig Down.Linc Energy coring rig#1.Helicopter sling load equipment and materials off location. 12/09/12: Rig Down. Linc Energy coring rig#1.Helicopter sling load equipment and materials off location. 12/10/12: Rig Down. Linc Energy coring rig#1.Helicopter sling load equipment and materials off location. 12/11/12: Continue rig down. Unable to fly to location due to poor weather. 12/12/12: Continue rig down. Unable to fly to location due to poor weather. Report#10 Pg1 • • () line KEEX 02 ra ore Test EIIERGY Tyonek, Alaska Weekly Summary of Operations: 11-29 to 12-05-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 11/29/12: Wash and ream to 1,645' (top of fish). Circ and cond hole. POOH 210' above fish to 1,435'. Mix and pump 1.25 bbl (5.5sx) of 15.2 ppg cement. POOH. Wait on cement (planned 24 hour wait time). Perform general rig and site maintenance. MW = 8.7 ppg• 11/30/12: Perform general rig and site maintenance. RIH. Tag cement top at 1,320'. Core drill cement w/3.77" core bit from 1,320'to 1,350'. MW =8.7 ppg. 12/01/12: Core drill cement w/3.77" core bit from 1,350'to 1,420'. Circ and cond hole.Core drill cement w/3.77" core bit from 1,420' to 1,645'. Mill on fish to 1,646'.Core drill new formation from 1,646' to 1,648'.POOH. Ream to 1,527'to 1,596'. MW = 9.1 ppg• 12/02/12: POOH. Ream from 1,527' to 1,560'. POOH. LID bit. PU new 3.77" core bit. RIH and tag up at 1,592'. Ream from 1,592'to 1,646'. Mill on fish from 1,646'to 1,648'.POOH to 1,626'. Ream from 1,626' to 1,648'. Drill new formation from 1,648' to 1,654'. MW = 9.1 ppg. 12/03/12: POOH to 1,570'. Ream from 1,570'to 1,654'. Core drill from 1,654' to 1,684'. POOH.Lost 24' of pipe on bottom.RU to test BOPE. Test BOPE to 250/1,000 psi. MW =8.9 ppg. 12/04/12: Continue test BOPE to 250/1,000 psi—test OK.RIH w/ bit and tag fish at 1,660'. POOH.R/U wireline. RIH w/wireline logs. MW = 9.1 ppg. 12/05/12: Continue wireline logs.RIH w/ inclination survey. POOH. R/D wireline.RIH w/ drillstring. Tag fish at 1,660'. POOH to 1,570'. Mix and pump 8.0 bbl (35.5sx) of 15.2 ppg cement. POOH to 1,050'. Wait on cement (planned 12 hour wait time). POOH to 1,050'. MW = 9.1 ppg. Report#9 Pgl • • OKEEX 02 �'�� Stratigraphic Core Test EIIERGY Tyonek, Alaska Weekly Summary of Operations: 11-22 to 11-28-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 11/22/12: Continue toperform general rig maintenance. Core from 1,410'to 1,527'.Circ and cond hole.Core from 1,527' to 1,549'.RU to perform FIT. MW =9.1+ ppg. 11/23/12: Perform FIT to 14.5 ppg. Achieved leak-off(LOT) at 13.6 ppg EMW (350 psi with 9.2ppg mud at 1,527' shoe depth).Core from 1,549'to 1,569'. POOH. L/D core bit. PU 3.875" roller cone bit.RIH. Wash from 1,347'to 1,527'. Ream from 1,527' to 1,569'. Circ and cond hole. MW =9.2ppg. 11/24/12: POOH to casing shoe at 1,527'.Circ and cond hole. Ream from 1,527'to 1,569'. Drill new formation from 1,569' to 1,590'. POOH to casing shoe at 1,527'.Circ and cond hole. MW =9.2 ppg. 11/25/12: POOH. LID 3.875" roller cone bit. P/U 3.77" core bit. RIH to shoe at 1,527'.Circ and cond hole.RIH to 1,590'.Core from 1,590'to 1,604'. MW=9.2 ppg. 11/26/12: Core from 1,604'to 1,624'. POOH. RU to test BOPE. Test BOPE to 250/1,000 psi— test OK. P/U 3.77" new core bit. MW = 9.2 ppg. 11/27/12: RIH to 1,600'. Wash and ream to 1,624'. Core from 1,624'to 1,644'. POOH to shoe. Wash and ream from 1,574'to 1,644'. 11/28/12: Core from 1,644'to 1,646'. Stuck pipe. Attempt to free pipe, parted above bit (1' fish left in hole). POOH. P/U 3.77" new core bit. RIH to 1,556'. Wash and ream sand. MW = 9.0 ppg. Report#8 Pgl • 02 �'DCKEEX Strati ra hic Core Test EIIERGV g p Tyonek, Alaska Weekly Summary of Operations: 11-15 to 11-21-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 11/15/12: RIH w/4.5" casing to 1,190'. Ream from 1,190'to 1,316'. Unable to ream deeper. POOH. PU 4.875" bit. RIH to 400'. MW =9.1ppg. 11/16/12: Continue RIH to 1,180'. Ream from 1,180' to 1,527' (TD). MW = 9.1ppg. 11/17/12: Circ and cond hole. POOH. PU casing shoe and RIH w/4.5" casing.RIH to 800'.Circ and cond hole.RIH to 1,527'.RU to cement casing. MW=9.1ppg. 11/18/12: Mix and pump 9.2 bbl (41sx) of 15.2 ppg cement (100% OH excess). Good returns. Cement to surface. Clean and clear rig floor and location while waiting on cement. Perform general site and rig maintenance. ND of BOPE. Cut 4.5" casing. NU BOPE.Connect chart recorder for BOPE test. Test BOPE to 250/1,000 psi.MW = 9.1ppg. 11/19/12: Continue to test BOPE to 250/1,000 psi—test OK. RIH w/3.77" core bit. Tag cement at 1,050'. Core cement to 1,097'. MW =9.1ppg. 11/20/12: Core cement from 1,097'to 1,330'. MW =9.0+ppg. 11/21/12: Core cement from 1,330'to 1,410'. RU and test 4.5" casing to 1,000 psi—test OK. Perform general site and rig maintenance. MW= 9.0+ ppg. Report#7 Pgl • • UI .'11KEEX 02 EIIERGY Stratigraphic Core Test Tyonek, Alaska Weekly Summary of Operations: 11-08 to 11-14-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 11/08/12: Change bit.RIH w/drillstring. Dropped 320' of drillstring (wrong pulling sub used). TIH and tag fish. POOH. Recovered fish—complete recovery. RIH and wash and ream from 700' to 1,077'. Notify AOGCC of weekly BOPE test. MW = 9.0ppg. 11/09/12: Drill 4.875" hole from 1,077'to 1,087'. Circ and cond hole. POOH to 750'. Wait on helicopter for crew change. Perform general site and rig maintenance. POOH to test BOPE. Witness waived by Lou Grimaldi of AOGCC. Rig up and test BOPE to 250/1,000 psi. MW = 9.0ppg. 11/10/12: Continue BOPE test to 250/1,000 psi—test OK. Rigsite low on fuel,perform general site and rig maintenance while waiting for additional fuel. RIH w/4.875" bit. Drill from 1,087'to 1,097'. MW = 9.0ppg. 11/11/12: Drill from 1,097'to 1,227'. MW =9.1ppg. 11/12/12: Drill from 1,227'to 1,237'. POOH. Change bit. RIH. Drill from 1,237' to 1,247'. POOH. Change bit. RIH. Drill from 1,247' to 1,267'. MW =9.2+ ppg. 11/13/12: Drill from 1,267'to 1,407'. MW =9.2ppg. 11/14/12: Drill from 1,407'to 1,527'. CircBtms Up. Short trip to 1,257'. RIH to 1,527'. CircBtms Up. POOH. L/D BHA. RIH w/4.5" casing to 1,080'. MW =9.2 ppg. Report#6 Pg1 • tine S KEEX 02 Stratigraphic Core Test EIIERGY Tyonek, Alaska Weekly Summary of Operations: 11-01 to 11-07-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 11/01/12: Finalize rig up of choke manifold and Alternative BOPE. Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to 11/03/12. MW =9.2 ppg. 11/02/12: Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to 11/03/12. MW=9.2 ppg. 11/03/12: Connect chart recorder for BOPE test. Test BOPE to 250/1,000 psi—test OK. RIH w/ 4.875" bit. Trip to 440'.MW =9.4 ppg. 11/04/12: Tag hard cement at 660'. Drill out cement to 720'. Test casing to 1,000 psi—test OK. Drill cement to 800'. Drill formation to 820'. Perform FIT test to 14.3 ppg—test OK (no Leak-off). Drill formation to 824'. MW =9.4 ppg. 11/05/12: Drill formation to 837'. Shutdown drilling operations due to frozen lines to water supply. Thaw out frozen lines to water supply. MW = 9.4 ppg. 11/06/12: Thawed out frozen lines to water supply. Drill formation from 837'to 1,077'. Stop drilling to make repairs to mud mixing tank. MW = 9.2ppg. 11/07/12: Work on mud mixing tank. POOH. Check bit—plugged jet. Unplugged bit. MW=9.2 ppg• Report#5 Pgl • S Am KEET 0t LI I l r Stratigraphic Core es Tyonek, Alaska Weekly Summary of Operations: 10-25 to 10-31-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 10/25/12: Mix and pump 9.9bbl (44sx) of 15.2 ppg cement (100% OH excess). Good returns. Cement to surface. Clean and clear rig floor and location while waiting on cement. Perform general site and rig maintenance. Rig up choke manifold. MW = 9.2 ppg. 10/26/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW =9.2 ppg. 10/27/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW =9.2 ppg. 10/28/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW =9.2 ppg. 10/29/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. MW =9.2 ppg. 10/30/12: Continue rig up choke manifold. Perform general site and rig maintenance. NU Alternative BOPE. Plan to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply scheduled for 11/02/12. MW= 9.2 ppg. 10/31/12: Continue rig up of choke manifold and Alternative BOPE. Perform general site and rig maintenance. Continue to delay drillout of surface casing shoe due to low fuel storage volumes, barge with fuel resupply moved to 11/03/12. MW =9.2 ppg. Report#4 Pgl • KEEX 02 i Stratigraphic Core Test EIIERGY Tyonek, Alaska Weekly Summary of Operations: 10-18 to 10-24-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 10/18/12: Perform short trip to 500'. Circ and cond hole. Perform general site and rig maintenance. Waiting on surface casing. MW = 9.2 ppg. 10/19/12: Continue waiting on surface casing. Circ hi-vis sweep.Hole in good condition. Move pipe every hour. Clean out cellar. Perform general site and rig maintenance. MW = 9.2 ppg. 10/20/12: Continue waiting on surface casing. Move pipe every hour. Clean out cellar. Perform general site and rig maintenance. MW = 9.2 ppg. 10/21/12: Continue waiting on surface casing. Short trip. Mix new mud. Perform general site and rig maintenance. POOH. LID bit. PU casing shoe.RIH w/5.5" casing. Run casing to 240'. Wash and ream casing from 240' to 290'.MW = 9.2 ppg. 10/22/12: Work casing at 320'. Unable to ream below.POOH.L/D casing.RIH w/ 6.0" bit and ream from 200'-235'. Continue in hole, reaming to 575'.POOH. MW = 9.2 ppg. 10/23/12: POOH. LID bit. RIH w/ 5.5" casing. Run casing to 370'. Wash and ream casing from 370' to 491'. Work casing at 491'. Unable to ream below. POOH. LID casing.RIH w/ 6.0" bit and trip to 100'. MW = 9.2 ppg. 10/24/12: Trip in hole w/ 6.0" bit from 100' to 450'. Ream hole from 450' to 800'. POOH. L/D bit. RIH w/ 5.5" casing. Run casing to 800'.Circ and cond hole. Rig up to cement.MW = 9.2 ppg. Report#3 Pgl • • KEEX 02 ()) LII1C Stratigraphic Core Test EIlERGY Tyonek, Alaska Weekly Summary of Operations: 10-11 to 10-17-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 10/11/12: Perform Diverter System Inspection —test OK. PU drillstring and 6" bit. RIH and tag cement top inside 7" conductor casing at 107'. 10/12/12: Drill out cement in shoe track from 107' to 113'. Drill 6" surface hole from 113' to 310'. MW =8.9ppg. 10/13/12: Drill 6" surface hole from 310' to 500'. MW =9.0ppg. 10/14/12: Drill 6" surface hole from 500'to 576'. MW = 9.1ppg. 10/15/12: Drill 6" surface hole from 576' to 650'. MW =9.1ppg. 10/16/12: POOH for bit change. PU new 6.0" bit. RIH. MW =9.1ppg. 10/17/12: Drill 6" surface hole from 650' to 800'. CBU.Prep to POOH. MW = 9.2ppg. Report#2 Pgl • • KEEX 02 Stratigraphic Core Test EIIERGY Tyonek, Alaska Weekly Summary of Operations: 10-04 to 10-10-12 PTD No. 212-112 (All depths RKB unless labeled otherwise) 10/04/12: Drill 8-1/2" conductor hole from 48' to 83'. 10/05/12: Drill 8-1/2" conductor hole from 83' to 97'. Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/06/12: Drill 8-1/2" conductor hole from 97'to 113'. PU 7" casing. 10/07/12: Run 7" casing to 113'. Mix and pump 304 gal (32.4 sx) of 15.2ppg cement w/ 2% CaCl2. Displace w/252 gal of water. Full returns, cement to surface.Estimate cement inside 7" casing at 85'. Wait on cement 12 hours. NU diverter.Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/08/12: Continue NU diverter. Clean and clear location.Secure well. Shutdown operations due to limited helicopter access (weather). Rest crews. 10/09/12: NU diverter line. Resupply rig. Notify AOGCC for witness of Diverter Function Test. 10/10/12: AOGCC Diverter Function Test witness waived.Continue to prepare rig and location for drilling surface hole. NU flowline for fluid returns. Function test diverter—test ok. Continue rig up to drill surface hole. (� _ (? 7L . r o- .t L Report#1 Pg1 OF Ty Alaska Oil and Gas \ �:�j,s THE STATE Ff 4 ®fl 1LAsKA Conservation Commission - 17 GOVERNOR SEAN PARNELL 333 West Seventh Avenue w M: OF ALAS Anchorage- Alaska 1-3572 Main:907.279.14330 Fax: 907.276.7542 Corri Feige General Manager - Alaska Linc Energy Operations, Inc. .2) a- It 3000 C Street, Suite 103 Anchorage, AK 99503 Re: Exploratory Field, Exploratory Pool, KEEX 02 Sundry Number: 312-462 Dear Ms. Feige: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy ' . Foerster Chair DATED this day of December, 2012. Encl. v • • +441/4;/1 DECEIVED , STATE OF ALASKA DEC 0 5 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION h73 1214//z—.. APPLICATION FOR SUNDRY APPROVALS AOGCC 20 AAC 25.280 1.Type of Request: Abandor Q• Plug for Redrill ❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑ Suspenc ❑ Plug Perforations❑ Perforate ❑ Pull Tubing❑ Time Extension ❑ Operations Shutdowr ❑ Re-enter Susp.Well ❑ Stimulate ❑ Alter Casing❑ Other. ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Linc Energy Operations, Inc. Development ❑ Exploratory ❑ 212-112 • 3.Address: Stratigraphic 0• Service ❑ 6.API Number. 3000 C Street,Suite 103,Anchorage,AK 99503 50-283-20166-00-00• 7. If perforating,closest approach in pool(s)opened by this operation to nearest 8.Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ❑ No 2 - KEEX 02 9.Property Designation(Lease Number): 10.Field/Pool(s): MHT#9200462• Exploratory 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): • 1684 1684 . 1660 1660 Casing Length Size MD ND Burst Collapse Structural 15 9.625" 15 15 Conductor 113 7.0" 113 113 Surface 800 5.5" 800 800 Intermediate 1527 4.5" 1527 1527 Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A N/A N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): N/A N/A 12.Attachments: Description Summary of Proposal Li• 13.Well Class after proposed work: Detailed Operations Program Li BOP Sketch ❑ Exploratory [✓] Development ❑ Service ❑ 14.Estimated Date for , 12/5/2012 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: 12/4/2012 WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑., Commission Representative: Guy Schwartz GSTOR ❑ SPLUG ❑ 17.I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Printed Name Corri Feige Title General Manager-Alaska Signature Phone (907)868-8660 `'Date Mr ,e7 _ / / j COMMISSION USEONLY / // Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 5\ Z- c(40 2 Plug Integrity ❑ BOP Test ❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other: 7/Lo'4 Jdc c-c,s i c:4 `L. / CCs ., (. ./...4 • i .�x,�n Cxct�hw� yv,r ? LI pt: J (3O ., # I Subsequent Form Required: /0 ( f 7_ A'Ne DEC 0 6 2012 / I APPROVED BY Approved by: �_-- COMMISSIONER THE COMMISSION Date: ' _ _/Z 0 R i3oj. .eA/�010 ® Su in Duplicate • • RECEIVED DEC 0 5 201`e EllERGY AOGCC Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 December 5, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Plug and Abandonment Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: NWSE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations Inc. hereby applies for Plug and Abandonment of well KEEX 02 (PTD 212-112), an onshore Underground Coal Gasification stratigraphic test well approximately 8 miles northwest of the town of Old Tyonek and 7 miles north of Trading Bay on the west side of Cook Inlet. Please find attached information as required by 20 AAC 25.105 (e) for your review. Pertinent information attached to this submission includes the following: 1) Form 10-403 Application for Sundry Approvals 2) Operations Summary 3) Actual Wellbore Diagram 4) Proposed Abandoned Wellbore Diagram The following are Linc Energy designated contacts for reporting responsibilities to the Commission: 1) Completion Report Stan Porhola, Drilling and Completions Engineer (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Bob Schlosser, Coal Geologist (20 AAC 25.071) (907) 868-8660 • • In accordance with Alaska Statute AS 38.05.035 (a)(8)(C) and Alaska Administrative Code 11 AAC 96.220, Linc Energy Operations, Inc. requests that confidentiality be extended to the information described herein and submitted with this transmittal. If you have any questions or require further information, please contact either Cord Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, Corri A. Feige Alaska General Manager • I KEEX 02 Linc Energy Operations Inc. Proposed Operations Summary - Plug & Abandon 1. RIH w/drillstring and tag fish at 1,660'. 2. Mix and pump 200' of 15.2 ppg cement, bringing cement to 1,440'. 3. POOH to 1,200'. Circ and cond hole with 9.1 ppg mud. 4. Wait on cement. 5. RIH w/drillstring and tag cement plug at +/- 1,440'. 6. Pressure test plug to 1,000 psi for 30 min./c44.4,f--. 7. POOH to 150'. 8. Mix and pump 150' of 15.2 ppg cement, bringing cement to surface. 9. RD LincEnergy Core Rig#1. Release rig. 10. Cut off casing 3' below natural GL. Set Marker plate. Collect GPS coordinates. Take pictures, send to AOGCC. Bury marker plate. // Auf faC4 ZG A4 c ze. iZ-t..) • • ACTUAL WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API it: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8"structural casing �;l, ' ,,e ' a� `� <1i ,�•' �, Driven to 15 8.50" hole to 113' • J • , 7" conductor casing "• '. R. ., set@113' • s Cemented to surface with 40.6ft3 of cement '` (200%OH excess) .`. k,el 6.0" hole to 800' '_ t ! 5.5" surface casing 'I set @800' • Cemented to surface with 55.6ft3 of cement ' (100%OH excess) 4.875" hole to 1,527 ., t (No core to be taken) tf •, 4.5" surface casing : set @ 1,527' Cemented to surface with 51.7ft3 of cement (100%OH excess) • 3.875" hole to 1,590' (Reamed hole section) a Bit and drillstring at 1,660' 3.77" hole to 1,684' (Left in hole) (Recover cores) Rev 12/03/12 • • • PROPOSED WELLBORE DIAGRAM - PLUG & ABANDONMENT KEEX 02 Section 25-12N-13W, SM API #: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8" structural casing Driven to 15' Cement Plug 8.50" hole to 113' �¢ „ 0' 150' 7" conductor casing set @ 113' � Cemented to surface with 40.6ft3 of cement (200%OH excess) .y , 6.0" hole to 800' ; . •5.5" surface casing set @ 800' MW Cemented to surface with ''• 55.6ft3 of cement 9.1 ppg (100%OH excess) '` 4.875" hole to 1,527' • (No core to be taken) 4.5" surface casing 1 set @ 1,527' /Li 4 Cif Ta Cemented to surface with --' 51.7ft3 of cement (100%OH excess) " 'r I St r,l7i Cement Plug • 3.875" hole to 1,590' 1,40'- 1,660' (Reamed hole section) A , • Bit and drillstring at 1,660' 3.77" hole to 1,684' . (Left in hole) (Recover cores) Rev 12/04/12 Page 1 of 2 ' Schwartz, Guy L (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, December 04, 2012 8:50 PM To: Regg, James B (DOA) Subject: Re: Verbal Approval for Plug &Abandonment of KEEX 02 (PTD 212-112) Attachments: image001.jpg; image002.jpg; image004.jpg Onit ... I was thinking same . Sent from my iPhone On Dec 4, 2012, at 5:31 PM, "Regg, James B (DOA)" <jim.reggAalaska.gov>wrote: Chart test; not ruling it out right now but it is highly unlikely we will be sending anyone out for that test. If full P&A, photos of cutoff(showing depth), cement to surface, and marker plate info/installed. Jim Regg AOGCC 333 W.7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 From: Schwartz, Guy L(DOA) Sent: Tuesday, December 04, 2012 1:22 PM To: Stan Porhola Cc: Wallace, Chris D (DOA); Regg, James B (DOA); Nick Scales; Jerry Otto; Mike Hagen; Bob Schlosser Subject: RE: Verbal Approval for Plug &Abandonment of KEEX 02 (PTD 212-112) Stan, ,)(v You have verbal approval to commence P &A operations on KEEX 2 ( PTD 212-112) as shown on our attached well diagram. Can you provide a more detailed procedure as soon as possible and submit a 10-403 to P &A. Also the bottom plug will need to be pressure tested to 1000 psi. Thanks, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Stan Porhola [mailto:stan.porhola@lincenergy.com] Sent: Tuesday, December 04, 2012 10:58 AM To: Schwartz, Guy L (DOA) Cc: Wallace, Chris D (DOA); Regg, James B (DOA); Nick Scales; Jerry Otto; Mike Hagen; Bob Schlosser Subject: Verbal Approval for Plug &Abandonment of KEEX 02 (PTD 212-112) 12/6/2012 • • Page 2 of 2 Guy, Linc Energy is requesting verbal approval to plug and abandon the KEEX 02 well (PTD 212-112). Linc management has made the decision to not drill to our planned TD of 2,850'. Our current TD is 1,684'. We plan to start plug and abandonment operations after logging the open hole section, running the gamma ray across the cased-hole section, and running the inclination survey. Attached are the current well schematic and the planned P&A schematic. Regards, Stan Porhola <image001.jpg> <image002.jpg> Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 E stan.porhola©lincenergy.com I 3000 "C" Street, Suite #103 Anchorage AK 99503 -[if lvml]--> <l--[endif]--> United States P +1 907 868 8660 F +1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenerciy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 12/6/2012 ("\ P� OF/r�� THE STATE �,,,��I�i�, Alaska {ail and Gas N4 , -71 Of L S ' • _i�T. v'Er____ r fit#_ -.- t GOVERNOR SEAN PARNELL ��-=r 333 West Seventh Avenue OA, Anchorage,Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 November 29, 2012 Certified Mail Return Receipt Requested 7009 2250 0004 3911 5778 Ms. Corrie A Feige General Manager- Alaska Linc Energy Operations, Inc. 3000 C St, Suite 103 Anchorage, AK 99503 Re: Request for Variance to 20 AAC 25.071(a) Underground Coal Gasification Stratigraphic Test Well KEEX 02 Approved Permit to Drill (PTD) 2121120 Dear Ms. Feige: By letter dated October 28, 2012 received by Alaska Oil and Gas Conservation Commission (AOGCC) October 31, 2012 Linc Energy Operations, Inc (Linc) requests a variance from the provisions of 20 AAC 25.071(a). Specifically Linc seeks to avoid running electric or radio- activity logs across the surface hole interval (0 ft to 800 ft). This request for variance is hereby DENIED. In the Application for Keex 02 Permit to Drill submitted by Linc to AOGCC on October 8, 2012, Linc committed to the Logging Program for KEEX 02 which specified 100-800 ft Gamma Ray (Cased Hole Portion) be run. Linc detailed the running of the Gamma Ray in their Proposed Operations Summary, Step 14. "Continue Gamma Ray from 100' to 800' MD/TVD thru cased hole." Based on Linc's representation,the Commission approved Permit to Drill 2121120. Sincerely, 14 Cathy P. Foerster Chair, Commissioner J U.S. Postal Service-f., CERTIFIED MAILTM RECEIPT co f_ (Domestic Mail Only;No Insurance Coverage Provided) tr► For delivery information visit our website at www.usps.com,, raERAGE AK ` )503 r-a Er m Postage $ $0.45 0535 . Certified Fee 95 a. 02 Pos Q Return Receipt Fee Q Here t7(Endorsement Required) $z.35 _2 Restricted Delivery Fee Q (Endorsement Required) $0.00 -e`: L.n7 ru Total Postage.^--- @ rti $5. 11/30/2012it Sent To - CD Ms.Corrie A Feige Q Street,Apt.No.; ' N or PO Box No. General Manager-Alaska City,State,ZIP+ Linc Energy Operations,Inc. 3000 C St.,Ste.103 PS Form 3800. Anchorage,AK 99503 • SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY ■ Complete Items 1,2,and 3.Also complete A. Signature ❑Agent item 4 if Restricted Delivery is desired. We ❑Addressee on the verse • Printyour name and addressDelivery Date of De ry so that we can return the card to you. B. Received by ,'s ted Name) the mail iece, ■ Attach this card to the back ofP IC. Or on the front if space permits. D. Is delivery address different from item 1? 0 Yes 1. Article Addressed to: If YES,enter delivery address below: 0 No 3. Sepice Type Ms.Carrie A Feige g Certified Mail ❑Express Mail General Manager-Alaska Registered 0 Return Receipt for Merchandise Linc Energy Operations,Inc. ❑Insured Mail 0 C.O.D. 3000 C St.,Ste.103 Anchorage,AK 99503 4. Restricted Delivery?(Extra Fee) 0 Yes 2. Article Number 7009 2250 0004 3911 5778 (Transfer from service label) PS Form 3811,February 2004 Domestic Return Receipt 102595-02-M-1540 „, ) [Inc EIIERGY 28 October 12 RECEiVED Alaska Oil and Gas Conservation Commission OCT 312012 333 West 7th Avenue; Suite 100 Anchorage, AK 99501 AOGCC RE: Request for Variance to 20 AAC 25.071(a) Underground Coal Gasification Stratigraphic Test Well KEEX02 Approved Permit to Drill#212-112 Dear Chairman Foerster: Linc Energy Operations, Inc. (Linc) hereby requests a variance from the provisions of 20 AAC 25.071(a) "Geologic Data & Logs” for operations associated with the KEEX02 Underground Coal Gasification (UCG) stratigraphic test well. Specifically, Linc does not plan to run electric or radio-activity logs across the surface hole interval (Oft—800ft) in the KEEX02, as data from this interval will be of no value to the UCG assessment work that is taking place at the KEEX02 site. Linc's UCG exploration and development program, of which the KEEX02 is a part, is under the jurisdiction of the ADNR Division of Mining, Land and Water, Coal Regulatory Program (ASMCRA In-Situ Mining regulations specifically), and these regulations do not require the running of electric or radio-activity logs in a coal exploration stratigraphic test hole. Linc does plan to acquire a suite of electric logs, including gamma logs, in the open-hole section of KEEX02, commencing just below the surface casing at 800ft. AOGCC will receive a copy of these logs as well as a set of samples from the KEEX02, per the data submittal requirements associated with the approved permit to drill. If you require any additional information, I can be contacted by phone at (907) 868-8660 or by email at corri.feige@lincenergv.com. Sincerel &(-91Ze_cie) Corri A. Feige General Manager-Alaska Cc:/ Russell Kirkham, Coal Regulatory Group Program Manager, ADNR-DMLW LINC ENERGY OPERATIONS, INC 3000 C Street,Suite 103 +1 907 868 8660 Anchorage,AK 99503 +1 907 868 8881 www.lincenergy.com �oF , THE STATE Alaska Oil and Gas ��7, THE „ -�� °fAI .AS :A - ;P Conservation Commission rh„ GOVERNOR SEAN PARNELL 333 West Seventh Avenue ALA`��P Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 Corri Feige General Manager Linc Energy Operations, Inc. 300 C Street, Suite 103 Anchorage, AK 99503 O� Re: Exploratory Field, Exploratory Pool, KEEX 02 Sundry Number: 312-424 Dear Ms. Feige: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. Linc Energy Operations, Inc. (Linc Energy) request for a waiver requiring Open Hole (OH) formation evaluation logs from the conductor to 1500' is approved. Alternatively, at minimum a cased hole (CH) gamma ray log must be run from the casing shoe at 1500' to surface. Linc Energy's request for a variance requiring core chips from each foot of core is approved. However, Linc Energy must provide the Commission with high quality photos of the core sections as well as the core log. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Cathy R Foerster ,p Chair DATED this �r A--- y of November, 2012. Encl. • NOV 0 6 2012 ERERGY AOGCC Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 November 5, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Sundry Approval (Add Casing String and Core) Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: NWSE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations, Inc. hereby applies for Sundry Approval to make changes to the approved Permit to Drill (PTD 212-112). Linc plans to drill the 4.875" hole section to 1,500' MD/TVD and run 4.5" intermediate casing From this point, we will core the production hole from 1,500' to 2,850' MD/TVD using a 3.77" OD core bit. The desire to set intermediate casing comes from the need to minimize the annular space during coring operations to prevent washing out of the core by lowering the flow rate needed to circulate while coring. All drilling below the surface casing shoe at 800' will utilize our alternative BOPE system that was rigged up and tested to 1,000 psi prior to drilling out the surface casing shoe. This was done per Alaska Oil and Gas Conservation Commission ("AOGCC") well safety requirements. Linc requests the following variance requests for this well that is part of our Underground Coal Gasification stratigraphic core drilling program: 1.) Variance to the requirements of 20 AAC 25.071(a) addressing Geologic data and logs requirements to have a complete electric log or complete radio-activity log below the conductor casing. We are requesting a variance to those requirements and requesting to not run logs across the surface and intermediate hole interval (100' — 1,500') since the data will be of no value to the UCG assessment and is • not required under the jurisdiction of the ADNR Division of Mining, Land, and Water, Coal Regulatory Program in a coal exploration stratigraphic test hole. 2.) Variance to the requirements of 20 AAC 25.071(b)(4) addressing Geologic Data and Logs requirements to provide chips from each foot of recovered conventional core. We are requesting a variance to those requirements because the core must be preserved whole and intact, and shipped to a rock properties laboratory in Australia where it will be consumed in a "bench test" gasifier. Since the UCG testing requires that the core be consumed in total, we request that this provision be waived. In lieu of core chips, we will provide the Commission with a complete, detailed core log and a set of associated core photos, as well as a complete set of open hole logs. If you have any questions or require further information, please contact either Cord Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, Corri A. Feige General Manager— Alaska • i • ►��,��✓RECEIVED STATE OF ALASKA I.\� NOV 0 s 2012 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS AO,ICC 20 AAC 25.280 1.Type of Request: Abandor ❑ Plug for Redril:❑ Perforate New Pool❑ Repair Well❑ Change Approved Program 0 • Suspenc❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension ❑ Operations Shutdowr ❑ Re-enter Susp.Wel: ❑ Stimulate❑ Alter Casing❑ Other: Add casing string and core • 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number: Linc Energy Operations, Inc. Exploratory ❑ Development ❑ 212-112 • 3.Address: Stratigraphic 2 Service Li 6.API Number: 3000 C Street,Suite 103,Anchorage,AK 99503 50-283-20166-00-00 • 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? KEEX 02 Will planned perforations require a spacing exception? Yes ❑ No ❑ 9.Property Designation(Lease Number): 10. Field/Pool(s): MHT#9200462 ' Exploratory ' 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 800 800 800 800 Casing Length Size MD TVD Burst Collapse Structural 15 9-5/8" 15 15 Conductor 113 7" 113 113 Surface 800 5.5" 800 800 Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): N/A N/A N/A N/A N/A Packers and SSSV Type: N/A Packers and SSSV MD(ft)and TVD(ft): N/A 12.Attachments: Description Summary of Proposal 2 13.Well Class after proposed work: Detailed Operations Program Li BOP Sketch 0 Exploratory ❑ Stratigraphic❑., - Development ❑ Service Li 14.Estimated Date for 11/7/2012 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Email Stan.porhDla(Q@,Ilncenergy.com Printed Name Corri Feige Title General Manager-Alaska Signature1 -(4);(771-41-e ❑ Phone Date Z l ' 5 kelt f COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 2./(12 q 3 Plug Integrity 0 BOP Test lJ Mechanical Integrity Test ❑ Location Clearance ❑ Other: t /o CSO fos� 8°P `S r Spacing Exception Required? Yes ❑ No ❑ Subsequent Form Required: /G -'0 7 APPROVED BY Approved by: _P 'w„ COMMISSIONER THE COMMISSION Date: it U 1 Z-� 0 R IF}vm� r 8 '�L Submit Form and ( �s d 10/2012) Approved application i li 72 months from the date of ap ov .t��merits in Duplicate �Y .\ • • EI1ERGY KEEX 02 General Prognosis Well Name: KEEX 02 Surface Location: Section 25, T12N, R13W, SM Bottom hole Location: Same (vertical hole) Planned TD: 2,850' MD /TVD Well Summary After setting a 9-5/8" structural casing at 10', an 8-1/2" conductor hole will be drilled to 100'. The 7.0" conductor will be set at 100' and cemented to surface. The cellar will be grouted with concrete to stabilize the conductor casing and a diverter installed. A 6.0" surface hole will be rotary drilled to 800'. The 5.5" surface casing will be set at 800' and cemented to surface. The alternative BOPE system will be rigged up and tested to 1,000 psi. A 4.875" intermediate hole will be rotary drilled to 1,500'. The 4.5" intermediate t casing will be set at 1,500' and cemented to surface. Core drilling operations will drill approximately 1,350' of 3.77" OD core hole to 2,850' MD/TVD. Drilling Fluid Management A gel freshwater mud system provided by MISWACO will be used for the rotary and coring operations from surface to TD. At the end of coring operations the settling pit will be reclaimed in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21. Waste Management All waste including drill cuttings will be handled in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21 as governed by the Coal Regulatory Group of the Alaska Department of Natural Resources. Well Trajectory and Deviation Survey The KEEX 02 is planned to be a vertical well. An inclination survey will be run at the end of the well after the open-hole logging runs. Formation Tops and Casing Depths See attached geologic summary. No production casing is planned at this time. Logging Program •.:11..I <s ee--- r L � �'�/� i(-6 0' — 1,500' No open-hold logs(Conductor, Surface, Intermediate Hole) 1,500' — 2,850' Gamma Ray/Resistivity/Neutron Density/Sonic 0' — 2,850' Inclination survey • • KEEX 02 Linc Energy Operations Inc. Proposed Operations Summary 1. MIRU LincEnergy Core Rig#1. 2. Set 9-5/8" structural casing at 10' MD/TVD. Mix gel freshwater mud system. 3. Drill 8.50" conductor hole to 100' MD/TVD. 4. Run & cement 7.0" conductor casing with 25.4 cu ft. 15.2 ppg Class G cement (100% excess)to surface. 5. Nipple up Diverter system and gas detection system and notify AOGCC. 6. With AOGCC witness function test of Diverter system. 10 .5i `a 7. Drill 6.0" surface hole from 100' to 800' MD/TVD with 8.7 to 9.2 ppg mud. CP D 8. Run & cement 5.5" surface casing with 48.9 cu ft. 15.2 ppg Class G cement (100% excess)to surface. 'i._ 4 9. NU and test Alternate BOP system to 250/1,000 psi. Notify AOGCC prior to test. e / 10. Drill 20' new hole from 800' to 820' MD/TVD. Perform FIT to 14.3 ppg. `� 11. Drill 4.875" intermediate hole from 820'to 1,500' MD/TVD (No core to be taken). 541 5 12. Run &cement 4.5" surface casing with 51.7 cu ft. 15.2 ppg Class G cement(100% excess)to surface. 13. Drill 20' new hole from 1,500' to 1,520' MD/TVD. Perform FIT to 14.5 ppg. 14. Drill 3.77" production core hole from 1,520' to 2,850' MD/TVD (Recover core). 15. RU wireline. 16. Run open hole logs (Gamma Ray/Resistivity/Neutron/Density/Sonic)from 1,500' to 2,850' MD/TVD.+ LW eRPrsa !t41 cero % 1 Sao r -,-a sc.,e 4c-e._ . !l•d•l Z-- 17. 17. Run inclination survey tool from 0' to 2,850' MD/TVD. 18. Plug and abandon per AOGCC requirements. Submit 10-403 to AOGCC for approval. 19. RDMO LincEnergy Core Rig#1. • • 0 Lo o , W J m v z < 3 O O Q F=- C -0_ a d0 J CJ O C y 3 y a Q F L @ o a C = 00 Q I al I' t `i O fV 'a C f0 i i? f} i C cu t , /C 1 Q. i. ao ,sal- = O I� . r0+ _ d rl ^ _3 C. C. II N O a I U (6 T I a7 O i 4 = G l O to co • (, 0 N . ra Il e 4, i ii I Tr a) N I N +.,O p I CD X I —_IIM � t 4J W v C I E ro p vi cn i' `,� u .6 I _ rts o I in - C II o \i i : N O. I I • . I I } 0 1 U 3 • M II "6 CZ 0 moo W I C m W a :( 't 'I1 I it 0 0 0 0 0 0 0 0 0 2 o It 0 u+ 0 Ln ei a-1 N N M M (1aa3) ypdaa 0 • • PROPOSED WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API #: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8" structural casing �1 , Driven to 15' 8.50" hole to 113' 7" conductor casing . +. r set @ 113' . '1 it?j Cemented to surface with • 40.6ft3 of cement ' ` (200%OH excess) 6.0" hole to 800' , 5.5" surface casing set @ 800' , Cemented to surface with i a 55.6ft3 of cement /6,v. $�i (125%OH excess) 1, " 4.875" hole to 1,500' LS C (No core to be taken) 5 as V 4.5" surface casing set @ 1,500' '' ' '` Cemented to surface with t 51.7ft3 of cement .-r � " (100%OH excess) tSOv `{.< .p0`j6 6'6/(t 3.77" hole to 2,850' (Recover cores) Rev 11/02/12 • KEEX 02 Linc Energy Operations, Inc. Pressure Calculations & Mud Weight Discussion Maximum Anticipated Surface Pressure: 3.77" Production Hole Section This hole section will be drilled with an alternate BOP system. MASP for the production hole section is determined as the surface pressure at breakdown of the surface casing shoe with a gas gradient to the surface. MASP Calculation Assumptions 1) Formation pore pressures across the openhole interval (1,500'-2,850') are anticipated to be 0.45-0.48 psi/ft based on offset data of the nearby Long Lake#2 (PTD 206-061) located 9,000' ESE of the proposed KEEX 02 location. 2) Fracture gradient at 1,500' is estimated to be 14.5 ppg. Fracture gradient data from the offset Long Lake#2 had a LOT of 14.3 ppg at 800'. MASP Calculation Pshoe = FG x 0.052 x D = 14.5 x 0.052 x 1,500 = 1,131 psi MASP calculated with 4.5" casing set at 1,500', while drilling 3.77" hole to 2,850' MD. MASP = [(FG x 0.052)—0.10] x D = [(14.5 x 0.052)—0.10] x 1,500 = 981 psi Pshoe = Pressure at casing shoe, psi MASP = Maximum Anticipated Surface Pressure, psi FG = Fracture Gradient at the casing shoe, lb/gal 0.052 = Conversion from lb/gal to psi/ft 0.10 = Gas gradient in psi/ft D =True vertical depth of casing shoe, ft RKB Alternative BOP System Discussion With a MASP for the 3.77" production hole section calculated to be 981 psi, the 1,000 psi alternative BOP system to be used will be rated above the maximum anticipated surface pressure (MASP). Mud Weight Discussion Nearby offset Long Lake#2 (PTD 206-061), located 9,000' ESE of the KEEX 02 proposed location, observed no over-pressured formations and was drilled with 8.7-9.3 ppg MW over the KEEX 02 interval of interest (0-2,850'). It is projected a 8.7-9.3 ppg MW will be sufficient during drilling operations of the KEEX 02. 0 • - I I1C KEEX 02 -y EDERGY Alternative BOP System N Bell Nipple 6„Flow Nipple r___I> 7-1/16" Flange 3,000 psi To Shaker 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 6" Ball Valve 1,500 psi Upper Master 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 2" Ball Valve 2" Ball Valve 3" Ball Valve 3" Ball Valve Foloo,AAj2" Kill Line IIIIIIICosIIIIIII 3" Choke Line II �II,III �II' ‘NIVV 7 1 /7 7-1/16" Flange 3,000 psi Threaded Connections Threaded Connections 7-1/16" Flange 3,000 psi 6" Ball Valve 1,500 psi"7 Lower Master 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 4-1/2" 10.8# Surface Casing • • KEEX 02 PTD 212-112 Linc Energy's request for a waiver requiring Open Hole (OH) formation evaluation logs from the conductor to 1500' is approved. Alternatively, at minimum a cased hole (CH) gamma ray log must be run from the casing shoe at 1500' to surface. Linc Energy's request for a variance requiring core chips from each foot of core is approved. However, Linc must provide the Commission with high quality photos of the core sections as well as the core log. 0 0 NOTE TO FILE KEEX 02 (PTD 211-112),Sundry Application No. 312-424 November 6,2012 Davies' thoughts on variances requested by Linc Energy Operations, Inc.: Linc's proposed variances are mainly driven by cost-savings, so AOGCC will be setting a precedent for future logging programs for Linc and other smaller operators with this Sundry Application. 1. 20 AAC 25.071(a),Well logging requirements - KEEX 2 will be located about 1 mile west of the 1962-vintage Stedatna Creek 1 exploratory well, and it will be the furthest well to the north of Nicolai Creek Field and west of the Moquawkie Field. IIILONE C••EK 2 'VSS3I� .TEDATNA CK U ..,1 L. Fop. AW'KIESPs,P ASP i 0 E MOQUALE 1 IE1 1 P0 1000AtlVKI M••QUAWKI::•••. ALL10E5 41 I QUAWKI:f i•DAV KI 1 ONEK RESE•VE 1 R 161000-'AGE 1•'J TYONEK ti:CERVE OQUAVJKIE ..-; SIMPCO PAS WAVJKI�j 2 W TYEK 1 A1111 w MOO ALYICIE � 0 E RESE•VEg 1 MO*U• IIIIIIIIIIFAIIIIIII SIMS'0 KALDAC •BUI`, r •' NC1..r, 0 ,+�c}{R Tv.i'...,.8 YQN. ST 1 08-i083 I 11KALOA• CU 11 L n� '• . ... f •I S7I . §�17 67 2 ffJJ11C8.OtAt_, 67 L Ste` G P,5864 587 TYONEK ST. 7568 • Well logs from Stedatna Creek 1 are limited to Induction Electrical, MicroLog, Sonic, and Gamma Ray. None of these logs record measurements shallower than 1975' MD. The only lithology log is a hand-written Wellsite Sample Description that begins at 60' MD. Mud weight information is limited to that recorded on the well log headers. The KEEX 2 Permit to Drill requires Linc obtain a mud log. I recommend denying Linc's request concerning well logs. Despite Linc's assertion that well log data will be of no value to the current underground coal gasification assessment, any data acquired in KEEX 2 will add to the geologic record and will be valuable to future Cook Inlet oil and gas exploration. For well logging, I recommend that AOGCC require, at a minimum, a cased-hole gamma ray from base of conductor to the surface casing shoe so that the Commission has some record of the shallow geologic section in this remote area. My own preference would be a minimum requirement of an open hole gamma ray log, supplemented wtih shallow and deep resistivity logs. 2. 20 AAC 25.071(b)(4), Core chip requirements - I believe that Linc's request is reasonable, and recommend approving this variance, provided we specify that the core photos be of sufficient quality and scale to resolve pp g p readily sedimentary features measuring 1/8—inch or larger(we don't want poorly lit, hand-held, well site photos for the public record). I believe that AOGCC should also emphasize that any variances granted to Linc are rest 'cted to the KEEX 2 well only, and that all future variance requests will be evaluated on a case-by-case basis. - 2i. �� ^�(~ Regg, James B (DOA) From: Regg JamesB (DOA) Friday' N mberO2 2O1210�48A�W > � \��/ Sent: . »»e ' � Y��/� ,'Id To: yWikeHagen Co: DOA AOGCC Prudhoe Bay Subject: RE: BOP and Casing test for Linc Energy PTD 212-112 Mike—| amwaiving witness nfthis test, primarily because weoannota�ordtostrand anInspector atyour location all night due tothe last start tinoefor your test and flights on|yduringday Ughthours. Because ofthe�ightrestrictions, | em requesting future BDPEtests bescheduled during daylight hours on|ytoaccommodate AOGCC inspections. Jim Regg AOGCC 333 W.7th Aye,Suite 100 Anchorage,AK 99501 90/'7934235 From: Mike Hagen [maiUo:nnika.hagen@|incenengy.com] Sent: Friday, November 02, 2012 10:87Afri To: Regg, James B (DOA); DOA AOGCC Prudhoe Bay Cc: Jerry Otto; Nick Scales; Corri Feige; Bnb5ch|osser Subject: RE: BOP and Casing test for Linc Energy PTD 212'112 Hi Jim, I will follow up this email with a phone call. VVeare delaying our scheduled BOP test that \sscheduled today. Aspreviously mentioned, weare awaiting fuel de|kery toreplenish our fuel cache before weresume driUin8. VVeatheriouesatOSKdock have delayed this chtica|fuel deUvery, which is the reason for the BOP test delay. We would like to make notification to perform the BOP test at 8PM tomorrow evening. Access to the drilling location is by fixed wing aircraft intoBeluga then by helicopter(during daylight hours only) from our field office to the drill rig. Please contact me to coordinate logistics to the site. P|easedon'thesitatetocontactmevvithanyquestiVns, commentsorconce/ns. | canbe /eachedbyof0cephone /9O7' 583'213O\, cd} phone (907-9O3'3146) orbyemaii Thanks, Mike Mike Hagen Hydrogeologist P +1 907 375 2605 M +1 907 903 3146 ' E nnike.hagen@|incenergy.cnnn ' -?f,„sM tit,m04* z y OF T� • • THE STATE Alaska Oil and Gas °f Conservation Commission ALASKA ti GOVERNOR SEAN PARNELL 333 West Seventh Avenue OwmTM p Anchorage, Alaska 99501-3572 ALA`3� Main: 907.279.1433 Fax: 907.276.7542 Corri Feige General Manager - Alaska f ' Linc Energy Operations, Inc. (a , 3000 C Street, Suite 103 Anchorage, AK 99503 Re: Exploratory Field, Exploratory Pool, KEEX 02 Sundry Number: 312-410 Dear Ms. Feige: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. S' erel, , r1 . Norma- Comma stoner DATED this day of October, 2012. Encl. • • RECEllio STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION OCT 2 3 2012 APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 1.Type of Request: Abandor ❑ Plug for Redrill❑ Perforate New Pool ❑ Repair Well❑ Change Approved Program ❑✓ . Suspenc ❑ Plug Perforations❑ Perforate❑ Pull Tubing❑ Time Extension ❑ Operations Shutdowr ❑ Re-enter Susp.Well ❑ Stimulate❑ Alter Casing❑ Other: N.214-/ ".11/1-4-4-•Q [la"' 2.Operator Name: 4.Current Well Class: 5. Permit to Drill Number. v`��``t— Linc Energy Operations, Inc. Exploratory ❑ .-, .-Development ❑ 212-112 • 3.Address: 6.API Number: Stratigraphic g -,`' Service ❑ 3000 C Street,Suite 103,Anchorage,AK 99503 50-283-20166-00-00 7. If perforating: 8.Well Name and Number. What Regulation or Conservation Order governs well spacing in this pool? KEEX 02 Will planned perforations require a spacing exception? Yes ❑ No ❑ 9.Property Designation(Lease Number): 10. Field/Pool(s): MHT#9200462 Exploratory - 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): Casing Length Size MD TVD Burst Collapse Structural 15 9-5/8" 15 15 Conductor 113 7" 113 113 Surface Intermediate Production Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: 'Tubing MD(ft): N/A N/A N/A N/A N/A Packers and SSSV Type: N/A Packers and SSSV MD(ft)and TVD(ft): N/A 12.Attachments: Description Summary of Proposal ❑ 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑✓ Exploratory ❑ /• Stratigraphic Development ❑ Service ❑ 14. Estimated Date for 10/25/2012 15.Well Status after proposed work: Commencing Operations: Oil ❑ Gas ❑ WDSPL ❑ Suspended ❑ 16.Verbal Approval: Date: WINJ ❑ GINJ ❑ WAG ❑ Abandoned ❑ Commission Representative: GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola Email stan.porhola(@Jincenerqy.com Printed Name . Cord Feige gb &ix_ Title General Manager-Alaska Signature / —77" . Phone / Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: qi/9' Plug Integrity 2 BOP Test Er' Mechanical Integrity Test ❑ Location Clearance ❑ Other: Spacing Exception Required? Yes ❑ No A Sul. t Form Required: /D — yo / -�✓ / / APPROVED BY Approved by: ( 4 MMIS +NER THE COMMISSION Date: 0/1,1.42/ 'JA cam" / y Submit Form and 11° 0 R IF61N(* 10/2012) Approved app icatt,L Is'�oruQ Melnivs7ot ate of ppprooval. Attach�en "n Duplicate ip.0, ' ! 0 L1I1C KEEX 02 . 0 EIIERGY Alternative BOP System Bell Nipple 6.,Flow N/pple r_r> 7-1/16" Flange 3,000 psi To Shaker 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi .ITh 6" Ball Valve 1,500 psi V Upper Master fir- , 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 2" Ball Valve 2" Ball Valve 3" Ball Valve 3" Ball Valve li 2" Kill Line Mu 3" Choke Line �'t 'I Crss NI\ 1 1 /7 7-1/16" Flange 3,000 psi Threaded Connections Threaded Connections ------ 7-1/16" Flange 3,000 psi 1 4 6" Ball Valve 1,500 psi1-1 \ Lower Master 7-1/16" Flange 3,000 psi L- -__- \-- _------ 7-1/16" -�7-1/16" Flange 3,000 psi 5-1/2" 14.9# Surface Casing • • IncKEEX 02 EIIERGY Stratigraphic Core Test Tyonek, Alaska Weekly-Summary of Operations: 12-13 to 12-19-12 TD No. 212-112 (All pths RKB unless labeled otherwise) 12/13/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (1 load).Daylight operations only.Discontinue flights to location due to poor weather. 12/14/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (19 loads).Daylight operations only. 12/15/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (1 load).Daylight operations only. Discontinue flights to location due to poor weather.Crews worked on storage area near Beluga. 12/16/12: Continue rig down of Linc Energy coring rig#1. No helicopter sling loads today. Crews worked on storage area near Beluga. 12/17/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (13 loads).Daylight operations only. 12/18/12: Continue rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (14 loads).Daylight operations only. 12/19/12: Finalize rig down of Linc Energy coring rig#1. Helicopter sling load equipment and materials off location (8 loads).Daylight operations only. Crews demobilized from site.Final site inspection and remediation planned for spring time. FINAL REPORT. Report#11 Pg1 Page 1 of 2 • • Schwartz, Guy L (DOA) From: Schwartz, Guy L (DOA) Sent: Tuesday, December 04, 2012 1:22 PM To: 'Stan Porhola' Cc: Wallace, Chris D (DOA); Regg, James B (DOA); Nick Scales; Jerry Otto; Mike Hagen; Bob Schlosser Subject: RE: Verbal Approval for Plug &Abandonment of KEEX 02 (PTD 212-112) Stan, You have verbal approval to commence P &A operations on KEEX 2 ( PTD 212-112) as shown on our attached well diagram. Can you provide a more detailed procedure as soon as possible and submit a 10-403 to P &A. Also the bottom plug will need to be pressure tested to 1000 psi. Thanks, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Stan Porhola [mailto:stan.porhola@lincenergy.com] Sent: Tuesday, December 04, 2012 10:58 AM To: Schwartz, Guy L (DOA) Cc: Wallace, Chris D (DOA); Regg, James B (DOA); Nick Scales; Jerry Otto; Mike Hagen; Bob Schlosser Subject: Verbal Approval for Plug &Abandonment of KEEX 02 (PTD 212-112) Guy, Linc Energy is requesting verbal approval to plug and abandon the KEEX 02 well (PTD 212-112). Linc management has made the decision to not drill to our planned TD of 2,850'. Our current TD is 1,684'. We plan to start plug and abandonment operations after logging the open hole section, running the gamma ray across the cased-hole section, and running the inclination survey. Attached are the current well schematic and the planned P&A schematic. Regards, Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 E stan.porhola@lincenergy.com IDC 3000 "C" Street, Suite #103 Anchorage AK 99503 EIIERGY United States P +1 907 868 8660 WW.hi Iincenergy.com F +1 907 868 8881 12/4/2012 ACTUAL WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API #: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8" structural casing I Driven to 15' 8.50" hole to 113' 7" conductor casing 1.::1_ set @ 113' Cemented to surface with 40.6ft3 of cement . 1?nn%OH PXCPSS1 6.0" hole to 800'5.5" surface casingset @ 800' [..,:IL i Cemented to surface with 55.6ft3 of cement r1 nn%OH PxrPstl A 4.875" hole to 1,527' (No core to be taken) 44 4.5" surface casing ! } set @ 1,527' Cemented to surface with 51.7ft3 of cement (100%OH ex/1.W 3.875" hole to 1,590' (Reamed hole section) Bit and drillstring at 1,660' 3.77" hole to 1,684' z (Left in hole) (Recover cores) Rev 12/03/12 i • PROPOSED WELLBORE DIAGRAM - PLUG & ABANDONMENT KEEX 02 Section 25-12N-13W, SM API #: 50-283-20166-00-00 Linc Energy Operations, Inc. 9-5/8" structural casing Driven to 15' 8.50" hole to 113' Cement Plug • 0' - 150' 7" conductor casing 15.2 ppb Cement set@113' y. Cemented to surface with 40.6ft3 of cement (200%OH Pxressl 6.0" hole to 800' 5.5" surface casing set @ 800' Cemented to surface with 9.1 55.6ft3 of cement (1nn%OH PxrPSsl 4.875" hole to 1,527' (No core to be taken) • 4.5" surface casing set @ 1,527' Cemented to surface with 51.7ft3 of cement ; (1nn%OH PxrPssl . Cement Plug 3.875" hole to 1,590' 1,460'- 1,660' (Reamed hole section) 15.2 ppb Cement • Bit and drillstring at 1,660' 3.77" hole to 1,684' (Left in hole) (Recover cores) • . /r Rev 12/04/12 • �O � � (11" s9 THE STATE Alaska Oil and Gas °fALAS� Conservation Commission � .w. GOVERNOR SEAN PARNELL 333 West Seventh Avenue O 'er Anchorage, Alaska 99501-3572 ALAg� Main: 907.279.1433 Fax: 907.276.7542 Corti Feige General Manager Linc Energy Operations, Inc. 3000 C Street, Suite 103 Anchorage, AK 99503 Re: Exploratory Field, Exploratory Pool, KEEX #02 Linc Energy Operations, Inc. Permit No: 212-112 Surface Location: 1429' FSL, 1671' FEL, SEC. 25, T12N, R13W, SM Bottomhole Location: 1429' FSL, 1671' FEL, SEC. 25, T12N, R13W, SM Dear Ms. Feige: Enclosed is the approved application for permit to drill the above referenced stratigraphic test well. THIS WELL IS ONLY APPROVED AS A STRATIGRAPHIC TEST WELL AND MAY NOT BE OPEN TO TEST OR REGULAR PRODUCTION WITHOUT SEPARATE APPROVAL OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION (AOGCC). Linc Energy Operations, Inc. (Linc) must ensure that mud weight used during drilling operations at any measured depth in KEEX #02 is equal to, or greater than, the mud weight employed to drill that same measured depth within the nearby Long Lake #2 well. Variance to the requirements of 20 AAC 25.033(c)-(g) addressing Primary Well Control requirements to have specific requirements for the drilling fluid system, fluid testing and tripping practices is APPROVED. (Linc requests variance to utilize an alternative drilling fluid system that is common in core drilling operations. Linc will utilize a manually operated mud scale and use visual/mechanical measurements ofmudpitsfor indications ofinflux or Lost .1� Circulation.) Variance to the requirements of 20 AAC 25.035(c)(1)(A) addressing Secondary Well Control requirements to have specific requirements for the diverter line size is APPROVED. (Linc requests a variance to utilize a 6"diverter line (instead of 16" required per 20 AAC 25.035(c)(1)(a)) due to the smaller hole size of our surface hole, which will be 6"or smaller.) I • • Variance to the requirements of 20 AAC 25.035(e)(4)(A)(ii) addressing Secondary Well Control requirements to have independent primary and secondary power sources to the accumulator is APPROVED. (The Linc Core Rig #1 is operated hydraulically, so no power is available from the rig to power the accumulator. The primary power source is a dedicated portable air compressor. No secondary power source is planned.) Variance to the requirements of 20 AAC 25.035(e)(4)(D) addressing Secondary Well Control requirements to have remote BOPE controls on or near the driller's station is APPROVED. (The Linc Core Rig #1 has limited space to allow for remote BOPE controls on the driller's station. However, the controls are located at the bottom of the walkway from the driller's station which requires walking down 4 steps from the rig floor down to the bottom of the walkway where the BOPE controls are located.) Variance to the requirements of 20 AAC 25.035(e)(9)(A) addressing Secondary Well Control requirements to have a Kelly Cock Valve below the swivel is APPROVED. (The Linc Core Rig #1 does not have a Kelly or a Top Drive. The mud pumps are connected directly to the drill string with a Valve installed to prevent back flow up the drill string into the mud pumps, which is a common configuration for core drilling.) Variance to the requirements of 20 AAC 25.050(2) addressing Wellbore Survey requirements to run a directional survey every 500 feet during drilling operations is APPROVED. An inclination survey must be acquired from the base of conductor to total depth at the time that open hole logs are recorded. (Linc requests a variance to run a wellbore survey at the completion of drilling operations, at the time that open hole logs are run because it is not possible to pass the survey tool through the core drilling assembly.) Variance to the requirements of 20 AAC 25.055(a) addressing Drilling Units and Well Spacing requirements to meet statewide spacing requirements is APPROVED for drilling and coring operations in the KEEX #02 well. Any subsequent approval to use this well to test or produce is contingent upon full compliance with 20 AAC 25.055 and issuance of a conservation order approving a spacing exception. Link Energy Operations, Inc. assumes the liability of any protest to the spacing exception that may occur. (Linc requests a variance to those requirements because since they are not drilling for oil or gas and the well is not designed to be brought on production. The land ownership for Underground Coal Gasification is solely held by the Alaska Mental Health Trust (AMHT).) Variance to the requirements of 20 AAC 25.066(a)(3) addressing Gas Detection requirements to have H2S (Hydrogen Sulfide) gas detection is APPROVED. (Linc requests a variance based on offset well data and the limited drilling depth • • of 2,850 feet. Will not be drilling into any zones where an H2S environment would be present.) Variance to the requirements of 20 AAC 25.070(2) addressing records and reports requirements to have a survey plat showing the precise surface location of the well is DENIED. (Linc requests a variance to those requirements and instead wants to utilize verified Global Positioning System (GPS) acquired coordinates (NAD 27) plotted on a topographic base and referenced to the appropriate UCG Exploration License Area Boundary.) This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Cathya6:2x, . Foerster Chair DATED this {L day of October, 2012. cc: Department of Fish & Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA A•A OIL AND GAS CONSERVATION COMIOION ORIGINAL PERMIT TO DRILL 20 AAC 25.005 la.Type of Work: lb. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1c.Specify if well is proposed for: Drill Q Lateral ❑ Stratigraphic Test Q Development-Gas❑ Service-Supply ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Redril❑ Reentry ❑ Exploratory ❑ Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑ Single Well ❑ 11.Well Name and Number: Linc Energy Operations, Inc. Bond No. 17s101858 KEEX 02 3.Address: 6.Proposed Depth: 12.Field/Pool(s): 3000 C Street,Suite 103,Anchorage,AK 99503 MD: 2,850 TVD: 2,850 4a. Location of Well(Governmental Section): 7. Property Designation(Lease Number): Exploratory Surface: 1429'FSL, 1671'FEL,Sec 25-T12N-R13W,S.M. MHT#9200462 Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: N/A 10/9/2012 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 1429'FSL, 1671'FEL,Sec 25-T12N-R13W,S.M. 82,122.70 acres 1,671' 4b. Location of Well(State Base Plane Coordinates-NAD 27): 10. KB Elevation above MSL: 683 feet 15.Distance to Nearest Well Open Surface: x-235,273 y-2,596,497 Zone-4 GL Elevation above MSL: 675 feet to Same Pool: N/A 16.Deviated wells: Kickoff depth: feet 17. Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 0 degrees Downhole: 1,334 psi Surface: 515 psi 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) - 9.625" 40 L-80 PE 10' 0' 0' 10' 10' Driven(Structural Csg) 8.5" 7.0" 26 L-80 PE 100' 0' 0' 100' 100' 25.4 c.f.(Conductor Csg) 6.0" 5.5" 14.9 A53 FJ 800' 0' 0' 800' 800' 48.9 c.f.(Surface Csg) 4.875" - - - - 2050' 800' 800' 2850' 2850' Open Hole 19. PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect.Depth MD(ft): Effect. Depth TVD(ft): Junk(measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface RECEIVED Intermediate �( Production OCT 0 S 2012 Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): A/JGCC 20. Attachments: Property Plat ❑✓ BOP Sketch 0 Drilling Program ❑✓ Time v. Depth Plot Q Shallow Hazard Analysis Diverter Sketch ❑✓ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and correct. Stan Porhola Contact stan.porhola(c�lincenergy.com Email Printed Name Cord Feige Title General Manager-Alaska Signature ,..itzA Q Phone (907)868-8660 , Date Commission Use Only Permit to Drill API Number Permit Appro I See cover letter for other Number: G�(2 t/1 50-Z.-0.) ' /(.6''[ ''rf� 'Date: 10 11'2_ Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: Q Other: )()(jobSamples req'd: Yes ' No❑ Mud log req'd:Yes❑ No❑ � os.. H2S measures: Yes ❑ No Er Directional svy req'd:Yes❑ No❑ Sec. „:"..c.49 ,4..c.0 l' 1-¢ drcit Spacing exception req'd: Yes ❑ No w' Inclination-only svy req'd:Yes[] No❑ .L.<./4 • 4 /re.) s: (-2742l APPROVED BY Approved by: -/ L �'4- I COMMISSIONER THE COMMISSION Date: f7 - -/ 2-- Submit Form and Vtl Form 10-401 (Revised 10/2012) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g) Attachments in Duplicate i `7 �d 'r®� 1°', -//2"---- `0. • • RECEIVED OCT 08 2012 Line AOGCC €DERGY Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 October 8, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill (New Application) Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: NWSE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations, Inc. hereby re-applies for a Permit to Drill an onshore Underground Coal Gasification stratigraphic test well approximately 8 miles northwest of the town of Old Tyonek and 7 miles north of Trading Bay on the west side of Cook Inlet. The well will be drilled on Alaska Mental Health Trust Land under the authority of a current Underground Coal Gasification (UCG) Exploration License (Kenai License MHT#9200462) held by Linc Energy Operations, Inc. and governed by the Coal Regulatory Group at the Department of Natural Resources. Linc plans to spud the surface hole on approximately October 9th, 2012, employing the new build LincEnergy Core Rig #1. The well plan is to drill and set conductor casing at approximately 100'. A diverter system will be installed and function tested before drilling the surface hole. Surface hole will be drilled to approximately 800'. An alternative BOPE system will be rigged up and tested prior to drilling the production hole. This will be done per Alaska Oil and Gas Conservation Commission ("AOGCC") well safety requirements. The production hole will be rotary drilled to 2,850' MD/TVD._. Linc requests the following variance requests for this well that is part of our Underground Coal Gasification stratigraphic core drilling program: 1.) Variance to the requirements of 20 AAC 25.033(c)-(g) addressing Primary Well Control requirements to have specific requirements for the drilling fluid system, fluid testing, tripping practices, and stratigraphic test wells. We are requesting a ORIGINAL i i variance to utilize an alternative drilling fluid system that is common in core drilling operations. 2.) Variance to the requirements of 20 AAC 25.035(c)(1)(A) addressing Secondary Well Control requirements to have specific requirements for the diverter line size. We are requesting a variance to utilize a 6" diverter line (instead of 16" required per 20 AAC 25.035(c)(1)(a)) due to the smaller hole size of our surface hole, which will be 6" or smaller. 3.) Variance to the requirements of 20 AAC 25.035(e) addressing Secondary Well Control requirements to have specific requirements for the BOPE. We are requesting a variance to utilize an alternative BOPE system that is common in core drilling operations, except that we utilize an oilfield-style annular preventer. The LincEnergy Core Rig #1 does not have the height and space available for a conventional BOPE. Conventional core drilling does not utilize an oilfield style annular preventer or ram preventers. Our plan is to use an alternative BOPE system that includes a 7" oilfield style annular preventer to shut-in on pipe and 2 each 4" ball valves used to shut-in the well when out of the hole. The BOPE system will be tested to 1,000 psi, which is the maximum working pressure of the 4" ball valves. The oilfield style annular preventer has a maximum working pressure of 3,000 psi. 4.) Variance to the requirements of 20 AAC 25.035(e)(4)(A)(ii) addressing Secondary Well Control requirements to have independent primary and secondary power sources to the accumulator. The LincEnergy Core Rig #1 is operated hydraulically, so no power is available from the rig to power the accumulator. The primary power source is a dedicated portable air compressor. No secondary power source is planned. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore an accumulator system is not a standard piece of equipment used in core drilling but will be utilized with our modified core rig. 5.) Variance to the requirements of 20 AAC 25.035(e)(4)(D) addressing Secondary Well Control requirements to have remote BOPE controls on or near the driller's station. The LincEnergy Core Rig #1 has limited space to allow for remote BOPE controls on the driller's station. However, the controls are located at the bottom of the walkway from the driller's station which requires walking down 4 steps from the rig floor down to the bottom of the walkway where the BOPE controls are located. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore BOPE controls are not a standard piece of equipment used in core drilling. 6.) Variance to the requirements of 20 AAC 25.035(e)(9)(A) addressing Secondary Well Control requirements to have a Kelly Cock Valve below the swivel. The LincEnergy Core Rig #1 does not have a Kelly or a Top Drive. The mud pumps are connected directly to the drill string with a Valve installed to prevent back flow • up the drill string into the mud pumps, which is a common configuration for core drilling. 7.) Variance to the requirements of 20 AAC 25.050(2) addressing Wellbore Survey requirements to run a directional survey every 500 feet. We are requesting a variance to run a wellbore survey at the completion of drilling operations, at the time that open hole logs are run because it is not possible to pass the survey tool through the core drilling assembly. 8.) Variance to the requirements of 20 AAC 25.055(a) addressing Drilling Units and Well Spacing requirements to meet statewide spacing requirements. We are requesting a variance to those requirements because we are not drilling for oil or gas and the well is not designed to be brought on production. The land' ownership for Underground Coal Gasification is solely held by the Alaska Mental Health Trust (AMHT). 9.) Variance to the requirements of 20 AAC 25.066(a)(3) addressing Gas Detection requirements to have H2S (Hydrogen Sulfide) gas detection. Based on offset well data and the limited drilling depth of 2,850 feet we will not be drilling into any zones where an H2S environment would be present. 10.) Variance to the requirements of 20 AAC 25.070(2) addressing Records and Reports requirements to have a survey plat showing the precise surface location of the well. We are requesting a variance to those requirements and instead utilize verified Global Positioning System (GPS) acquired coordinates (NAD27) plotted on a topographic base and referenced to the appropriate UCG Exploration License Area boundary. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) A plat showing the well location on the pad 4) Geologic Discussion, Anticipated Formation Tops 5) Shallow Gas Hazard Evaluation 6) General Well Prognosis, Waste Disposal, Logging Program 7) Proposed Operations Summary 8) Drilling Time versus Depth Curve 9) Proposed Wellbore Diagram 10) Layout of LincEnergy Core Rig #1 11) Photo of LincEnergy Core Rig #1 at LDRT #1 12) Layout of Pit System 13) Diverter System 14) Layout of Diverter Line 15) MASP Calculations • 16) Offset Well Mud Weight Data 17) Alternative BOPE System 18) Choke Manifold 19) Gas Detection System for LincEnergy Core Rig #1 20) BOPE Test Sequence for LincEnergy Core Rig #1 The following are Linc Energy designated contacts for reporting responsibilities to the Commission: 1) Completion Report Stan Porhola, Drilling and Completions Engineer (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Bob Schlosser, Coal Geologist (20 AAC 25.071) (907) 868-8660 The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Linc. If you have any questions or require further information, please contact either Corri Feige, General Manager - Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, &-(*:-.6CteCorri A. Feige General Manager- Alaska et c cD a c n 0, ,F7 } o = y W y G L ° E. 2 060 y W L.. .� W a YET ' 1 U • a � c or -"- Mai --._ .__. �.'�: o o i �' '-.N.-... o 0 s a z z Z F-, U > �.— s �' .7 ,Z Z t z. :I . . 1 ,�, _ _ y I If a o • , f Z - - • ��- z, • 0 i N _ _ 0 • N M y� - • .. •. .. ii 0. Y N ' tic F W • k z z v _ z i - . - - ,:2,'..„4„...":::..,--t • + ' rr.. ,1 n . . . tp 1 , r l '�* i _'', ' yrs 11 ~ ,.y,,.,�j 1 I.}t. tt- ,•••� itau._ � --. 1- tl 7 iA+ PItSi ," I y �/j y1 • 1 b- 4 ` ."1' (r a j )( N. T 11 ' _ L,r. I. .+ 4 ,,. ' `•... + .. , -; '`g r{jam4. t 4 — ,-• . ,,......4( - I Willik'.-CAu.,., 77.,..„6,t„....v......,' r.:„.,*.1 .,...,.....,: t, �� .:'•'ai:a .•� air ? !" 3f tt� i �� 1�n� 1 4 s� , L J ll� 4 L. —'�-'"'let `_` jf�.�, -�.�___ ,j; 111'4 1� },' �,,�}. �'k . • 1 ;i yy * y., •4; _4.441: '49 f4t t . .„, ,:// t • '''.a '' ' F Fa"* *,.\.1..or , '"'•. , \ k , ,,„ir.,.., 1 -*t. ) .*1, It "* +- At.rr � jli`i41 F. ...,:,,.y,... -•••••••*"'"'.»,''. "...yo:,,.w..., „y.."^.,,. of" - _ t 3 L. - 9 tot F % * ;# Ii — 4I ,rf [ y� ,t��', -�r'' . •••!"-4 1Fl % ._ �. 1671' from drill site ' ;. � I c �' _n to lease boundary ..`t- < •' - "fi s t qty ••0• _ a 4 4. • ` ,Gb�9` • f11i 5.`13, 4 ,`+`- ,3a. ' r 4. .} Ii — a + •4. . �+ 11 . r 4 s, r • • ,.,k : r - 'Y �� :t 4 b "s � \.: �''1Y RI „it �* — I ......7.-- , 111 'I\'''.. � �..� + ` f•', - 4+: 1tiy Via. �.. } t I. 4. .:1::I ,4,4,..::1 T : It" L Ai t ,y ` )T i ` it;!. .., ''114 Q.' :'18 .,,ii ne•,•.. - , ..."... f ‘,.. 1 ' ® Exploration Holes N UCG Exploration License Areas License AreasA 0 KEEX02 I'DC Alaska State Plane Zone 4,NAD27 1 0.5 0 1Mile Et1ERGY Site Locations.matl • • Exploration Drill Hole KEEX02 Linc Energy Operations Inc. Area Geologic Description KEEX02 is located approximately in the center of Sec.25,T12N, R13W, of the Seward Principal Meridian. The Tertiary sedimentary rocks,which can host the coal seams of potential Underground Coal Gasification (UCG) interest,are continental in origin derived from alluvial fans that deposited sediments into the forearc basin. These Tertiary sedimentary rocks belong to the Kenai Group which are subdivided into various formations. From top to bottom they include the Sterling Formation, Beluga Formation,Tyonek Formation, Hemlock Conglomerate and West Foreland Formation. The contact between unconsolidated Quaternary sediments and the underlying Sterling Formation is difficult to recognize as is the basal contact of the Sterling Formation. The Sterling Formation is uppermost Miocene to Pliocene in age consisting of weakly lithified massive sandstone, conglomeratic sandstone and interbedded siltstone and claystone. The unit includes interbedded lignitic coals typically less than 3 feet thick in its upper part, but may be as much as 10 feet thick in its lower part. However, a review of oil and gas well logs within the Cook Inlet basin suggests that individual coals in the order of 40 feet thick might occur in the Sterling Formation. The Miocene Beluga Formation consists of nonmarine, interbedded, weakly lithified sandstone, siltstone, carbonaceous shale, coal and minor volcanic ash. According to some, a distinctive feature of the Beluga Formation is the lack of massive bedded sandstones and thick coal beds that characterize the underlying Tyonek Formation. However, lignitic to subbituminous coal seams as much as 13 feet thick can occur in the upper part of the unit. The uppermost Oligocene to middle Miocene Tyonek Formation consists of massive bedded sandstones, siltstone and coal. The Tyonek Formation is characterized by the massive bedded sandstone beds and numerous lignitic to subbituminous coal beds, some of which are as much as 50 to 60 feet thick. Because of the thick nature of the coals the Tyonek Formation is the main exploration target. Contact with the overlying Beluga Formation is believed to be a disconformity where sandstone beds and coal beds become markedly thinner. Its basal contact is considered conformable with the underlying Hemlock Conglomerate. The West Foreland Formation occurs beneath the Hemlock Conglomerate. Volcanic rocks affecting Tertiary coal-bearing units span from Eocene through Holocene age. Quaternary volcanic rocks exist in portions of the Cook Inlet Basin, many derived from historically active volcanoes. Similarly,Tertiary volcanic rocks occur within or in proximity of the Exploration Concessions and have been intercepted in some oil and gas wells. i • Drill hole Geologic Description It is anticipated that KEEX02 will encounter unconsolidated Quaternary sediments, the Beluga and Tyonek Formations. Coal seams of interest will be encountered in the Tyonek Formation. The Hemlock Formation will not be penetrated. Anticipated Coal Targets Anticipated coals of interest are based on Stedatna Creek#1, API No. 50-283-10007-00-00 located 1 mile east of KEEX02 in Sec. 30, T12N, R12W and W. Tyonek#1, API No. 50-283-20340-00-00 located approximately 3 miles south of KEEX02 in Sec. 7,T11N, R12W. Data was also obtained from Nicolai Creek#3 API No. 50-283-20003-00-00 and Nicolai Creek No. 5,API 50-283-20036-00-00 both located in Sec.7 T11N, R12W approximately 5 miles south-southeast of KEEX02. Based on the offsets the following table describes the tops and thicknesses of the coals anticipated in Linc Energy Operations Inc. KEEX02. Linc Energy Operations, Inc. KEEX02 anticipated coal tops Anticipated Seam Depth (FT) Anticipated Seam Thickness(FT) 1,581 15 1,730 24 2,083 15 2,793 17 2,850 TD Shallow Gas Hazard Analysis Based on the mudlogs of Nicolai Creek#3, Nicolai Creek#5, and records from Long Lake#2,API No. 50- 283-20118-00-00 all drilling was conducted with mud weights not exceeding 9.3 ppg. Total gas based on 100 units equaling the equivalent of 2 percent methane had a high reading of approximately 100 units. . PRA 3601 C Street Suite 1424 Anchorage,AK 99503 907-272-1232(voice) 907-272-1344(fax) Adeeitc�:r�l .a AG�� info@petroak.corn www.petroak.corn To: Bob Schlosser Linc Energy, Alaska From: Michael Helton, Geophysicist, PRA Date: October 4, 2012 Subject: Shallow Gas Hazards Assessment Well: KEEX02 (Underground Coal Gasification Stratigraphic Test Core) Location: 61°5'54.75"N, 151°29'45.92"W (NAD27) X=235,273,Y=2,596,497, ASP4,NAD27 Total Depth: 2,850' The purpose of this letter is to document the seismic analysis of potential shallow gas hazards for the proposed KEEX02 well location, estimated to spud in October, 2012. I have examined area 2D seismic data and offset well reports for presence of shallow gas hazards, faulting, and possible shallow geopressure. My overall evaluation of the available seismic and offset well data shows no indications of shallow gas hazards given the mud weight program (9.2-9.3 ppg) used in the most recently drilled well, the Long Lake#2, spud on 7/11/2006 by Aurora Gas, LLC. We did not find any indication of shallow geopressure associated with the following offset wells: Stedatna Creek#1, Long Lake Unit#1, Long Lake #1 (re-entry), and the Long Lake#2 (see Figs. 1A/1B,base maps). An assessment of geopressure from seismic stacking velocities was not possible due to the lack of seismic coverage at the KEEX02 well location. Linc Energy 2D seismic line SAE-KN-201 used for the KEEX01 Seismic Evaluation for Shallow Hazards is located—13 miles north of the KEEX02 location(Fig. 2,base map). Due to the lack of a seismic tie between these locations, we are unable to correlate the anticipated KEEX02 coal targets to the deeper amplitude events referenced in the KEEX01 hazards summary. Linc Energy personnel have reviewed mudlogs for the Stedatna Creek#1, Long Lake Unit#1, Long Lake#1, and Long Lake#2 wells for gas associated with the coals expected to be encountered in the KEEX02 above 3500ft. We support their conclusion 1 • • that"...gas was of short duration and adequately controlled by mud weights around 9.2 ppg with no indications in the well history files of any well control problems". Our review of the Long Lake#2 mudlog indicates that gas associated with shallow coals seams from—1100'-3843' was controlled with mud weights ranging from 9.2-9.3 ppg. A close review of the Stedatna Creek#1 mud log and well report supports no known issues with shallow gas hazards. In their Application for Permit to Drill, Linc Energy has presented a drilling plan containing procedures and engineering controls to monitor and mitigate risks due to encountering shallow gas. Shallow Gas There is no seismic line through the proposed KEEX02 location. Time-to-depth conversion is uncertain given the lack of checkshot surveys and difficulty of good wavelet character ties to help position synthetics on the seismic. The KEEX02 depicted on these seismic profiles uses the integrated sonic data from the Stedatna Creek#1. The ALK seismic data contains a 1700 ft. datum and 7500 ft/sec replacement velocity. The KEEX02 can be projected on to two seismic profiles: ALK-3 (Fig. 3, 2480' NW of line) and ALK-9 (Fig. 4, 3960' NE of line). The ALK-3 seismic profile shows the KEEX02 projected location with respect to the Stedatna Creek#1 well. The ALK-9 seismic profile shows the KEEX02 projected location with respect to the W. Tyonek#1 well. We did not have access to relative amplitude scaled seismic data for any of the ALK seismic lines. Final scaled, AGC time-migrated seismic profiles were inspected for amplitude anomalies possibly indicating the presence of shallow gas. No obvious shallow amplitude anomalies were noted on either of the seismic lines (ALK-3 or ALK- 9) at the projected KEEX02 locations. A third seismic profile ALK-10 (Fig. 5) shows the Long Lake Unit#1 well (580' NW of the line) which is co-incident with the Long Lake#1 exploratory re-entry well. The Long Lake Unit#1 location is over 2 miles to the southeast of the proposed KEEX02 location so no projected wellbore for the KEEX02 location is shown. The Long Lake#1 exploratory re-entry of the Long Lake Unit#1 well was drilled by Aurora Gas, LLC to evaluate the potential for shallow natural gas deposits. The Long Lake#1 re-entered and opened the original Long Lake Unit#1 wellbore to 3550'. Five (5)prospective intervals were perforated and tested. After isolation the interval from 3130'-3278' was fracture- stimulated. This was necessary as initial swabbing operations were unable to induce any flow of gas or fluid. After all efforts to stimulate flow it was determined that the well was unable to produce natural gas. The inability to flow shallow gas in the Long Lake#1 re-entry well provides an empirical calibration point where no shallow gas hazards were encountered and fair quality S/N seismic reflectivity exists. Based on a qualitative comparison of the Long Lake#1 2 • 0 seismic reflectivity and the seismic reflectivity observed at the KEEX02 projected location on seismic line ALK-9, there does not appear to be anomalous amplitude events at the KEEX02 location indicative of possible shallow gas hazards. We compared sonic travel time from the Stedatna Creek#1 and the Long Lake Unit#1 (Long Lake#1 re-entry) wells (Fig. 6). Coal seam picks from the Long Lake Unit#1 are annotated along with the KEEX02 coal seam targets listed in the Linc Energy Permit to Drill. Slower sonic travel times are noted for the shallow coal seams in the Stedatna . Creek#1 as compared to the coal seams in the Long Lake Unit#1 sonic. A detailed review of the Stedatna Creek#1 mud log and completion report confirmed that the well had no shows or indications of oil or gas. The drilling procedure stipulated that the crew was "...to drill 20' into significant shows, cut cores, and if warranted, take drill • stem tests." Only side wall cores were taken in the shallow section above 3500' and no DST's were reported which would indicate that no significant shows were encountered during the drilling of the Stedatna Creek#1. Faults Inspection of seismic profiles ALK-3 (Fig. 3) and ALK-9 (Fig. 4) do not show faults within seismic resolution limits intersecting the proposed KEEX02 well bore. No drilling breaks or other indication of faults were reported in the Stedatna Creek#1 well summary. Pressure / Review of offset well data indicates that the KEEX02 well will penetrate a normally pressurized section from surface to TD. The Long Lake#2 mud log and sonic log data from the Stedatna Creek#1 and Long Lake Unit#1 indicate that these wells were normally pressured in the interval that will include the KEEX02 3500' TD (see Fig. 6, overlay of sonic data and KEEX02 coal targets). The Long Lake#2 mud log indicates that Aurora Gas, LLC maintained mud weights ranging from 9.5-10.1 ppg down to the . intermediate 9.625" casing point of 800'. Thereafter a mud weight range of 9.2-9.3 was . maintained to a TD of 3843'. 3 • • °yd. ,ll,at: '3 a,„,.� i w •01•110•11•11.11.1 .0'. �$ 7876, . , MI�M� `• M.�u...d.[ ..r..w.,IMI[ I INTO h s10 Ng v. -1--__ - ...S . YN � N .JJ.{I1rwIMN • TIN I {,0 -4-4- —- 'Aims is+ • IMMO mow �_: , _._ r ,oma �' r - - w.�n so Figure 1A. Base map showing KEEX02 location,offset wells,and seismic lines. Sections shown for scale. 4 k(E �— -ter-- -- `ells 1— 7__________ c40 r �p7 K190 I'l Al 'h ' srHnTM C' eJ i 7 ' tr 47s i P 'VO I R y N '• tr'o . , ti, ,, cP two trap '"D 3,-...1 A * �p� .. 'V. pow tit C. --- -�- - --• X10 --,. s's — C; 1'1 exiciA Tic `� X60 '6445 I SO Ts i . Nag' 76 c r ` _ Ito". -----------1---- --- -- ---)-- , t ...i,!-. , .ham �� S� . .1/ Figure 1B. Enlargement of base map showing KEEX02 location,offset wells,and seismic lines. Sections shown for scale. 4 S . '......_ . . .. .. ..1 . . . , , .....r.- . . I •.. ..• -----1---- •- ---i•-••••••-••• -•••,- -....9•-••.4-,-.••••• ' : , • . . : -1- , . I • • , , , , ' ' I • J . , I 1 i ..1 -- 1 .4....._.--••,.. KIDCO, - . 1 I 1- 1 1 11- -.1-.1 i tH 1 f ' ..._. . , . , ,-- .......4._.....1.___ . . , , , . • • ; N t • I : / ' ISO 1 f '. 0 -- , I ......, i ..I,—.,1,..........: I :, ; 1 ---'.'" ' L .1 \N ' • 4e•.1.•' 1 , , 1 . ' ' f .ii•.' 11 ; • , • I '; , I •• • I t [ 4;, : 1 ' : ,,4,*• . . ...•4I'' r•• .•..S. t . 4, .•.r.,14,,, :-. I KEEXCQ 1 -.44,,,, ,..,•,• „a : " IV, t, 1 ""Nt ; ...4.,,,.0,,:: .„:,...•, . I . • ::\ :. f`•••••,"...° • ° ......4i, , f ' .4. Figure 2. Base map showing KEEX01 and KEEX02 locations. ca 1.1- All'tip.,.•h.t :.11/,ItM/rp..v, fa a a EENSIM• STECApm C• fl CM 9621 MU 3541 t•M 546333 5421 53111 9341 2•3311 5361 S331- 11 SIM SIM M61 SOD 1111 41161 45111 6161 3, MD 200 MD 2710 2791 MN is MN 261 2691 )4311 3610 2506 MI 359D 3531 3310 MS 2470 3451 MM ZIK .....--....-.___-,..—.-......--.___.-... is...:. 131 II _. . . . . . .. . . . . . . ... . .. .... ...._.... •)417 • . , ..e.1 '— a P313 .- FE P -7,-7......,.,,, ,--,,,;—......,4f,,..-g.:7;•• iiiitAr...,7-r--,,' . . ........„,„„,,,..,........—....„.„,_,e,,,,,,',. ,:.-......... ,:•-!,:•.."124.,:e,...":....,-4.;....'''%`7,•05.A-13-,..•:'" -,....- , ..•----..-f.7.-..:.,,..-.'•-` --...:':, . , . Pt Pt 3 1.aPP. IPP.P ."..' ' -....,... -tt ..... '-.4geouPPP•P... ' ----'.—C"" ""*.,.., ,... , ..-'.- ., -/. -...'-''.:t Pt• t, . ...P. ' '.: - : .e•-•:—: — : *_'- '';E' "I' f-"t•-•.... '`..c...... ."` "...::::,":"': no- - - _ REDACTED M. Guhl 3/3/2016 • Ell t t ni: nit -,1,mt kEESD23 W TYOh1Ek GP SHORE FA( 3V:7=3-000 3720 3040 3560 3480 3490 3810 3240 3160 3080 3000 29;9$40 2760 2680 2600 2520 2440 2360 2280oMP S o 2020 1980 10480017106010201780174017001668162015801540508146014201380 1340 1300 1I601220 11801140 port (H 4 ¶1700 _....._...__...... ___ 114�- e ice ';"wM yT et.90. •rC 500 � *'` Fa so•. „ ,�., -yw- •s..«� a `: , + �V \ -:• 5080- ,,r�• ..,g.. 7?,40-: -nat ti14 *, 12.70 .. * 10111 ^,---A. C""•. . v- 1 .r�-•:«. #... _n i REDACTED M. Guhl 3/3/2016 6 • • ©AA'-ALK-ALK-10-mig-13 ® W TYONEK 8 4, LONG LK UNIT „....„77. CM 4'00 3460 3;«, 3380 3340 3300 3260 3220 3180 3140 3100 3060-3020 2980 2940 2900 2860 2820 MP Sho 1750 1730 1710 1690 1670 1650 1630 1610 1590 1570 1550 1530 1510 1490 1470 1450 1430 1410 ^of q. ® 127 00- 11545- .-___ 10381- 92 38- A 8082'. ® . „y, ..� _r.�.,.. .y ...�__ _ ..7' !t'_'_'y."- 69 - PI'1388 . ..� '.., ra � -__" 27 ,` . . '< L 57 73 500"'��" s '1 'h.. 4 `� n �. 1.. a w . .Y 4818 t, . 1a1,11,. ...,.' L ..--'t.. --...4........4.,.......E 34.64. •�-_ ^fie + T Seim115r4,,,,,,,...11/4.4„,r, ..r'v 4 �.-..,� . SE�1_ ; + 2309 iew .44 'r ;, al. - ' .-,a _. -000 7.----,..,„,:.- -:.:...:,-„ -3--.`....,-;--..--. --_- - _ T.� a. .Z. --,--4.--.-1-----.4% - i` 94'4.'"'�__"_ M � .t -2309- 1000 W _ r.'s`.'_ . _ REDACTED M. Guhl 3/3/2016 7 • • Well Sonic Interval Travel Time (pec/ft) 0 100 200 300 0 - 500 'l nnn oai+ 865. REDACTED M. Guhi 3/3/2016 4500 Figure 6. Plot of Stedatna Creek#1 and Long Lake Unit#1 sonic data with Long Lake Unit#1 coal seam picks and KEEX02 coal seam targets. 8 • S ) Linc EDfR6Y KEEX 02 General Prognosis Well Name: KEEX 02 Surface Location: Section 25, T12N, R13W, SM Bottom hole Location: Same (vertical hole) Planned TD: 2,850' MD / TVD Well Summary After setting a 9-5/8" structural casing at 10', an 8-1/2" conductor hole will be drilled to 100'. The 7.0" conductor will be set at 100' and cemented to surface. The cellar will be grouted with concrete to stabilize the conductor casing and a diverter installed. A 6.0" surface hole will be rotary drilled to 800'. The 5.5" surface casing will be set at 800' and cemented to surface. The alternative BOPE system will be rigged up and tested to 1,000 ' psi. Rotary drilling_operations will drill aoproximately 2.050' of 4.875" OD hole to 2.850' MD/TVD. Drilling Fluid Management A gel freshwater mud system provided by MISWACO will be used for the rotary and coring operations from surface to TD. At the end of coring operations the settling pit will be reclaimed in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21. Waste Management All waste including drill cuttings will be handled in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21 as governed by the Coal Regulatory Group of the Alaska Department of Natural Resources. Well Trajectory and Deviation Survey The KEEX 02 is planned to be a vertical well. An inclination survey will be run at the end of the well after the open-hole logging runs. Formation Tops and Casing Depths See attached geologic summary. No production casing is planned at this time. Logging Program 0' — 100' No open-hole logs (Conductor Hole) 100' — 800' Gamma Ray (Cased Hole Portion) 800' — 2,850' Gamma Ray/Resistivity/Neutron Density/Sonic 0' — 2,850' Inclination survey KEEX 02 Linc Energy Operations Inc. Proposed Operations Summary 1. MIRU LincEnergy Core Rig #1. °� 2. Set 9-5/8" structural casing at 10' MD/TVD. Mix gel freshwater mud system. 3. Drill 8.50" conductor hole to 100' MD/TVD. 4. Run &cement 7.0" conductor casing with 25.4 cu ft. 15.2 ppg Class G cement (100% excess)to surface. 5. Nipple up Diverter system and gas detection system and notify AOGCC. 6. With AOGCC witness function test of Diverter system. 7. Drill 6.0" surface hole from 100' to 800' MD/TVD with 8.7 to 9.2 ppg mud. 8. Run &cement 5.5" surface casing with 48.9 cu ft. 15.2 ppg Class G cement(100% excess)to surface. 7.G S BBL e-/.4-- 9. NU and test Alternate BOP system to 250/1,000 psi. Notify AOGCC prior to test. 10. Drill 20' new hole from 800' to 820' MD/TVD. Perform FIT to 14.3 ppg. 11. Drill 4.875" production hole from 820' to 2,850' MD/TVD (No core to be taken). 12. RU wireline. 13. Run open hole logs (Gamma Ray/Resistivity/Neutron/Density/Sonic)from 800' to 2,850' MD/TVD. 14. Continue Gamma Ray from 100' to 800' MD/TVD thru cased hole. 15. Run inclination survey tool from 100' to 2,850' MD/TVD. 16. Plug and abandon per AOGCC requirements. Submit 10-403 to AOGCC for approval. 17. RDMO LincEnergy Core Rig#1. • 0 0 �� v C W J z < z p 11i{ U CL Q E l'i f L LA `i M J 1 0.13 C i II C 41 7 c a I M� ILINI u 00M 00 VI N / 0 1 OI C L. N V a o in — o l CI �. 0 CO A ,CD I t N 0 W1LLU mal to i ` ` ' o oa i i ILA _ - o C CI C CD CD 1(•-•-•---, 8o t � I CI. E N o re„, 0 - o Cula - �� U O 1 in -C N I i ..-- W Il °n 401 oc I 1 —." =zolm) 1 L 0 0 0 0 0 0 0 0 in o in o in o in a-1 .i N N M M (}aaj) yldaa PROPOSED WELLBORE DIAGRA! • KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. 9-5/8" structural casing ; , ,, , .,a,:' ,,';.k Driven to 10 8.50" hole to 100' V r r r 7" conductor casingif '. , '. . i l set @ 100' ' . s 1 td) (7" 4 se-) Cemented to surface with _ 25.41t3 of cement (100%OH excess) ` `r 6.0" hole to 800' „. . k* d 5.5" surface casing ,•q; ; set @ 800' ti,44 Cemented to surface with ''�' 48.9ft3 of cement766/ S"c5� (100%OH excess) (5. 4.875" hole to 2,850' (No core to be taken) r Rev 10/08/12 i • U 0 00 VD Vo may. 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Ir. ..t,iit,„,kt,ttt• t- • 4• '..,..' f - rt i t 9t• "ittr ,„"'••t ',,r,,t• . , ...,. _ ,,:2,-„ , „ .,,,,,, 4 - ''' • -.-i It-' - i 4 • '' ',""%iik. ••4.•,' ti ,ttt- . t• '•• •it - . ,, • ; .- . Or?' • unc LincEnergy Core Rig #1 0 Et1ERGY Pit System Layout PIT SYSTEM FOR KEEX 02 Side View of Pit System 1 / Drill String Mixing Tank Mud Pumps Flowline Cuttings to Sump 1 Shale Shaker Mud Tank#2 Mud Tank#1 Top View of Pit System -08 Mixing Tank 0o F+ 1 Mud Pumps 4 Shale Shaker Flowline a Drill String o • • nc LincEnergy Core Rig #1 0 EtiiERGY Pit System Layout MIXING TANK MUD TANKS #1 & #2 , ... w . ,. a- ._. �� . ;rx ti �.., / ‘.—-" ; ; I' ce'" w� '`�� Jf/ j`�I , Y SHALE SHAKER MUD PUMPS _. ', ,. ,,......: / a- 1. -.--; -:".-,.,-'e,' yl 411) UI1C • • KEEX 02 ERERGY Diverter System Bell Nipple 6 now Nipple To Shaker 7-1/16" Flange 3,000 psi 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 6" Knife Valve 150 psi Diverter 6" Diverter Line Spool 83' Long 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 7" 26# Conductor • • LincEnergy Core Rig #1 0 h'fWY Diverter Layout LAYOUT FOR KEEX 02 Side View of Diverter Rig Floor Flowline / Diverter Ground Elevation Rig Subbase Edge of Pad,. 6"Diverter Line Cellar 4 83' Conductor Knife Valve Top View of Diverter Knife Valve 83' Diverter 4 6"Diverter Line —� Trench Cellar Edge of Pad • • LMC LincEnergy Core Rig #1 0 EllERGY Diverter Layout PHOTOS . .-- . 4.11 rws..18 't .. • 0401,• — . 4t \\s...s.s::;:- "11.11111 ,„ ., - • — , ls t .„.,,..,„.„. *t. - •--.. -ir.,, i-- - :,' .,-- - 4" OP ilk .-r ... , ,„ •,°,,, . . , , ''.;14Ne 'r-'•'- .‘ 1 ' • ' ' ‘5,;A• .,.. . . t.. y 1 '4...k 4 4.54.,' ''‘e•.' * - , .. . ,. • ff 4,-,..- , ,.. ., ,,, , ''''.41: .....;;;:,. .. 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MASP Calculation Assumptions 1) Formation pore pressures across the openhole interval (800'-2,850') are anticipated to be 0.45-0.48 psi/ft based on offset data of the nearby Long Lake#2 (PTD 206-061) located 9,000' ESE of the proposed KEEX 02 location. 2) Fracture gradient at 800' is estimated to be 14.3 ppg. Fracture gradient data from the offset Long Lake#2 had a LOT of 14.3 ppg at 800'. MASP Calculation Pshoe = FG x 0.052 x D Ste" • = 14.3 x 0.052 x 800 = 595 psi cr„ -tA"— MASP calculated with 5.5" casing set at 800', while drilling 4.875" hole to 2,850' MD. MASP = [(FG x 0.052)—0.10] x D = [(14.3 x 0.052)—0.10] x 800 = 515 psi L4 II Pshoe = Pressure at casing shoe, psi MASP = Maximum Anticipated Surface Pressure, psi FG = Fracture Gradient at the casing shoe, lb/gal 0.052 = Conversion from lb/gal to psi/ft 0.10 = Gas gradient in psi/ft D =True vertical depth of casing shoe, ft RKB Alternative BOP System Discussion With a MASP for the 4.875" production hole section calculated to be 515 psi, the 1,000 psi alternative BOP system to be used will be rated above the maximum anticipated surface pressure (MASP). Mud Weight Discussion Nearby offset Long Lake#2 (PTD 206-061), located 9,000' ESE of the KEEX 02 proposed location, observed no over-pressured formations and was drilled with 8.7-9.3 ppg MW over the KEEX 02 interval of interest(0-2,850'). It is projected a 8.7-9.3 ppg MW will be sufficient during drilling operations of the KEEX 02. • • KEEX 02 Offset Mud Weight vs. Depth 0.0 Long Lake Unit#1 Long Lake#2 KEEX02 Planned 500.0 KEEX 02 Mud system to be a 8.7-9.3ppg Water-based mud system 1000.0 1500.0 1st Coal a.Y w T7, 2000.0 —. ar a, 2 2500.0 -Total Depth 3000.0 - f 3500.0 — 4000.0 _ __._ ____,_. r__,_- 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 Mud Weight(ppg) 0 • • "nC KEEX 02 EIIERGY Alternative BOP System Bell 6„ Nipple Flow Nipple r_r> 7-1/16" Flange 3,000 psi To Shaker 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi Swedge 5" Ball Valve 1,000 psi Threaded Connections I Upper Master 2" Ball Valve 2" Ball Valve 3" Ball Valve 3" Ball Valve At FAS I 2" Kill Line MCro a 3" Choke Line Bor,,s g 41' 4 II INV \ I\ 1 1 /7 Threaded Connections , f> Threaded Connections 5" Ball Valve 1,000 psi Threaded Connections Lower Master Swedge\, J 5-1/2" 14.9# Surface Casing • • II■■■■ir.,�'�■■ : ■ ■■a.. a ttlE ' 111111111111111m=111111111111" ■■■■■■ Lmom o■ o ■■■ E1 ■■■ 11■■a■■ ■■■11111114. 1111■ 1.I ;: �■ 1111■■■■a ■1111 p� ■ ■ 11..11■■ 1111 1 � r �iaa� .��t s �. ■■ll : �11 ■1111■■ . �. i■■■■11Euvoil ■ ENER.WI■■■■■ ■■■■ .l■■■ k a PFS I111a�ilW101111 �i . ■.,■r'■ ■ al ' MILIIIMI'# II1II �Ji'{I■■ 1►II ■ill■ u II.P., ■■■1Mik1121■■ice■ia�01111 ■0111 .i ■ ■ ■ r=g■■■11■■■n ■■■aal■■■■■ �-■■■ Nii_ ■ ■ 1111 ■11i i■11.11■■■r�ELa Fill ■ ■ is a■ laillPLIAIIIIIIIIIIIPIE1111111111111111111 SN 1111110*-,6i■�a■■■ ■ ■■■ ■■■ ■■ Ilial ■ ■■i ■■■ttil i ■! ■ 1111■. 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I■hl ■ Li c ) ■.:■■■■■■■I•►l■■■■■■■■■■■ '�f 1■■.lA ,,,� �� '._�'■■■�■ ■ ■ 1111 1111■a ■ kI ■ b i�� 0111111111111111MMINDIMIEt9/9 El ammiranowilmAim qinvegon• - k iNi ■ir�i. Dorn a• as■■ ■a■bimEamo r_m■■m d 4 Iiirt , oimusEmEsmmIEEEffimmEremmEm___ ia Fa ' J I C'G� ■■iil ! ■/ !r.aia■ J_}_ Fig, 4 ■i■ ■i■■ii■■■■■■■■ ■_ _ _ rIM■■■a • 0 0i11€WLincEnergy Core Rig #1 Y Gas Detection System GAS DETECTION SYSTEM FOR KEEX 02 The gas detection system is located on the side wall next to the driller's console (See Gas Detection System below). The gas detection on the LincEnergy Core Rig #1 includes 3 methane LEL detectors (the three black cords with the blue adapters). There is one methane LEL sensor located in the Subbase/Cellar Area, one sensor at the Rig Floor Area (immediately next to the driller's console, and one at the Shale Shaker Area. GAS DETECTION SYSTEM SUBBASE/CELLAR AREA •t iri A 1 Ar--.......,„....., ' ,: 44 14641.1 \ii, .. milli , , . .... ..„:„ L , ,,,,,.., , ::. ...,, ,..... . :,,_ , .. . , .. .. ,,,. a Ell -, '''''''. r L t.,..*r 7:7 7.-.A's.,. b I i ! Ath 1 0 bk. , N ' V fid` t cif jr� t - _ \ RIG FLOOR AREA SHALE SHAKER AREA :Air Alk Nrki — ,111 1 i a } x , . 4 ; '� T \ r4 4. • • 0 Linc E(IERGY LincEnergy Core Rig #1 BOPE Test Sequence Test#1 • Annular, Lower Master Valve, Outside Kill Line, Choke manifold #7, #8, #9. Test#2 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #3, #5, #6. Test#3 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #1, #2, #3, #4. Test#4 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #5, #6, #8, #10, #11. Test#5 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #A, #B, #3. Test#6 • Annular, Lower Master Valve, Inside Kill Line, Inside Choke Line. Test#7 • Lower Master Valve, Upper Master Valve, Outside Choke Line. RECEIVED STATE OF ALASKA ALOKA OIL AND GAS CONSERVATION COMAION SEP 2 5 2012 PERMIT TO DRILL 20AAC 25.005 AnGt ,l . 1a.Type of Work: 1b. Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1c.Specify if well is proposed for: Drill ❑✓ Redrill ❑ Stratigraphic Test ❑✓ Development-Gas ❑ Service-Supply pp y ❑ Multiple Zone ❑ Coalbed Gas ❑ Gas Hydrates ❑ Re-entry ❑ Exploratory ❑ Service- WAGEl❑ Service-Disp ❑ Shale Gas 2.Operator Name: 5. Bond: BlanKet ❑ Single Well ❑ 11.WelYName and Number: Linc Energy Operations,Inc. Bond No. 17s101858 KEEX 02 3.Address: 6.Proposed Depth: .Field/Pool(s): 3000 C Street,Suite 103,Anchorage,AK 99503 MD: 2,850' . TVD: 2,850' 4a. Location of Well(Governmental Section): 7. Property Designation(Lease Number): \ Exploratory Surface: 1ga,,4'FSL,1pIFEL,Sec 25-12N-13W,S.M. MHT#9 62 - Top of Productive Horizon`LJ 16'/ 8. Land Use Permit: i� 13.Approximate Spud Date: • j t� ,L A 9/30/2012 Total Depth: ,j 'j ii J/ 9.Acres in Property: / 14. Distance to Nearest Property: 1434'-FSL,1679'FEL,Sec 25-12N-13W,S.M. ,-..--., 4422.70 acre 1,679 ft 4b. Location of Well(State Base Plane Coordin tes-NAD 27): 10. KB El vat' bove MSL: �f81 feet 15.Distance to Nearest Well Open Surface: x-2,3467"2 y-2 01 Zone-4 GL Ele ion bove M 675 feet to Same Pool: N/A • 1c- S417 / .J YET.-I.:- 16. !-16. Deviated wells: Kickoff depth: feet 17. Maxum nticipat:i Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 0 degrees I." ,ole: 1,334 p ' li; Surface: 0 psi(Using Diverter) 18.Casing Program: Specifications Top - S=ting De - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length ,• VD D TVD (including stage data) 9.625" 40 L-80 PE 10' 0' 0' 10' 10' Driven(Structural Csg) 8.5" 7.0" 26 L-80 PE 00' 0' 0' 100' 100' 25.4 c.f.(Conductor Csg) 6.0" - - - - 2, 0' 100' 0 2,850' 2,850' Open Hole 19. PRESENT WELL CONDITION SUMMA YVbe com ete or Redn I and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugsj( sured): ect.Depth MD(ft): Effect. Depth TVD(ft): Junk(measured):`f'Si Casing Length ze Cement Volume MD TVD Conductor/Structural > Surface \ ..,. .. ‘6\0 Intermediate , 4 v Production Liner , 4 Perforation Depth MD(ft): . \\,',Perforation Depth TVD(ft): 20. Attachments: Property Plat D (7": 1 BOO'Sketch❑ Drilling Program ❑ Analysis❑Plot ❑ Time v. Depthot Shallow Hazard Anal Y ;Dive -r Sketch❑✓ Seabed Report ❑ Drilling Fluid Program ❑✓ 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing is true and .rrect. Contact Printed Name 'orri Feige Title General Manager-Alaska Signature /4. . Phone (907)868-8660 Date _i109/ 7 Commission Use Only / Permit to Drill / 'PI Number: ��j2 • Permit Approval See cover letter for other Number: Z(Z /1Z-- 50-tai J -2c /t t-(.0i'- ' Date: requirements. Conditions of approval: If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales:l?l Other: / .• Samples req'd: Yes® No❑ Mud log req'd: Yes El No 121`.*HZS measures: Yes❑ No[;� Directional svy req'd: Yes ❑ No ' .v.c_/iy�cchc-4 jtLg,-yam r-( r ze6t--e,� 4 Zi✓HFIers:✓st.:) l ,i 9-z-S.'"7L.= APPROVED BY THE COMMISSION DATE: ,COMMISSIONER ORIGINAL �;,v Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in Duplicate V9 i • RECEIVED SEP 25 2012 EDERGY ADGCC Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 September 25, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill (New Application) Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: NWSE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations, Inc. hereby re-applies for a Permit to Drill an onshore Underground Coal Gasification stratigraphic test well approximately 8 miles northwest of the town of Old Tyonek and 7 miles north of Trading Bay on the west side of Cook Inlet. The well will be drilled on Alaska Mental Health Trust Land under the authority of a current Underground Coal Gasification (UCG) Exploration License (Kenai License MHT#9200462) held by Linc Energy Operations, Inc. and governed by the Coal Regulatory Group at the Department of Natural Resources. Linc plans to spud the surface hole on approximately September 30th, 2012, employing the new build LincEnergy Core Rig #1. The well plan is to drill and set conductor casing at approximately 100'. A diverter system will be installed and function tested before drilling the surface hole. This will be done per Alaska Oil and Gas Conservation Commission ("AOGCC") well safety requirements. The well will be rotary drilled to 2,850' MD/TVD. Linc requests the following variance requests for this well that is part of our Underground Coal Gasification stratigraphic core drilling program: 1.) Variance to the requirements of 20 AAC 25.033(c)-(g) addressing Primary Well Control requirements to have specific requirements for the drilling fluid system, fluid testing, tripping practices, and stratigraphic test wells. We are requesting a • • variance to utilize an alternative drilling fluid system that is common in core drilling operations. 2.) Variance to the requirements of 20 AAC 25.035(c)(1)(A) addressing Secondary Well Control requirements to have specific requirements for the diverter line size. We are requesting a variance to utilize a 6" diverter line (instead of 16" required per 20 AAC 25.035(c)(1)(a)) due to the smaller hole size of our surface hole, which will be 6" or smaller. 3.) Variance to the requirements of 20 AAC 25.035(e)(4)(A)(ii) addressing Secondary Well Control requirements to have independent primary and secondary power sources to the accumulator. The LincEnergy Core Rig #1 is operated hydraulically, so no power is available from the rig to power the accumulator. The primary power source is a dedicated portable air compressor. No secondary power source is planned. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore an accumulator system is not a standard piece of equipment used in core drilling but will be utilized with our modified core rig. 4.) Variance to the requirements of 20 AAC 25.035(e)(4)(D) addressing Secondary Well Control requirements to have remote BOPE controls on or near the driller's station. The LincEnergy Core Rig #1 has limited space to allow for remote BOPE controls on the driller's station. However, the controls are located at the bottom of the walkway from the driller's station which requires walking down 4 steps from the rig floor down to the bottom of the walkway where the BOPE controls are located. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore BOPE controls are not a standard piece of equipment used in core drilling. 5.) Variance to the requirements of 20 AAC 25.035(e)(9)(A) addressing Secondary Well Control requirements to have a Kelly Cock Valve below the swivel. The LincEnergy Core Rig #1 does not have a Kelly or a Top Drive. The mud pumps are connected directly to the drill string with a Valve installed to prevent back flow up the drill string into the mud pumps, which is a common configuration for core drilling. 6.) Variance to the requirements of 20 AAC 25.050(2) addressing Wellbore Survey requirements to run a directional survey every 500 feet. We are requesting a variance to run a wellbore survey at the completion of drilling operations, at the .4- v time that open hole logs are run because it is not possible to pass the survey tool (1,.4 t� through the core drilling assembly. ACT Of 7.) Variance to the requirements of 20 AAC 25.055(a) addressing Drilling Units and a. Well Spacing requirements to meet statewide spacing requirements. We are requesting a variance to those requirements because we are not drilling for oil or gas and the well is not designed to be brought on production. The land • ownership for Underground Coal Gasification is solely held by the Alaska Mental Health Trust (AMHT). 8.) Variance to the requirements of 20 AAC 25.066(a)(3) addressing Gas Detection requirements to have H2S (Hydrogen Sulfide) gas detection. Based on offset well data and the limited drilling depth of 2,850 feet we will not be drilling into any zones where an H2S environment would be present. 9.) Variance to the requirements of 20 AAC 25.070(2) addressing Records and Reports requirements to have a survey plat showing the precise surface location of the well. We are requesting a variance to those requirements and instead , , ;,"k utilize verified Global Positioning System (GPS) acquired coordinates (NAD27) 0(° plotted on a topographic base and referenced to the appropriate UCG P7 Exploration License Area boundary. . „r Please find attached information as required by 20 AAC 25.005 (a) and (c) for your . 11,3t), �k review. Pertinent information attached to this application includes the following: or1 ? kil 1) Form 10-401 Application for Permit to Drill { K-y(v o 2) A plat showing the surface location of the well ,,�s,e� 3) A plat showing the well location on the pad ate' iV% U 4) Geologic Discussion, Anticipated Formation Tops Yi'`c 5) Shallow Gas Hazard Evaluation 6) General Well Prognosis, Waste Disposal, Logging Program 7) Proposed Operations Summary 8) Drilling Time versus Depth Plot 9) Proposed Wellbore Diagram 10) Offset Well Mud Weight Data 11) Diverter System 12) Layout of Diverter Line 13) Layout of Pit System 14) Layout of LincEnergy Core Rig #1 15) Photo of LincEnergy Core Rig #1 at LDRT #1 The following are Linc Energy designated contacts for reporting responsibilities to the Commission: 1) Completion Report Stan Porhola, Drilling and Completions Engineer (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Bob Schlosser, Coal Geologist (20 AAC 25.071) (907) 868-8660 • . The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Linc. If you have any questions or require further information, please contact either Corri Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, 0 N Corri A. Feige General Manager—Alaska = ..ck% • III IC 1.61 - E u J i W y a = c LU < C OUw oRR 10 o con yl � _µ ., �4 — 9 z N - - i CP....t. o SZ z . . _ iiii 4 ,A. ., , . _ , S "'.s i 4 o t I j ti e r L 3 z ` _.,..,,,,,.." b . ate' • V �-I ll _ o ..7 . [ -, d 3 0 0z mz ptN A r-;r�, rlrt _ r .. . „` rI 1 � P• ` 1 �� T � r� 611 • ,, ,I t ` , 1 61, 6 ti `` qty: .- -.� _ _ t �' 14 1� :t (*t N ti a.' — 1,L r . '1°lyvr h *,, I "* „1,),1 }�� 1.r'' 7,, , 1 .. it i. r'ti '') ' '1. l�" 1 1 _1r ' U ,.+" t!, f' ' ',l • � ,r-' 5 • } 1. "6 ' ,s i -4 ' . it t '' t6 • .e f I . I \1 ., Icy S,.II • , J I � `W' 1679' from drill s><te. _.. t }4::1'.::-:- ., to lease boundary r ' '` .'mp i `y ',t r `I , , _ { . t I 4 1, T r' r h y-p� 'r •i �_ �, •y •las, .. � � n. t gt „ay,. t,40.. Joy \'''.\ _ Vr4—s t 1 L �: 9 1 ' .,;,.tet$. .( 1,f, ' ` ` .- ' .;/ ��ee 1 '71�" 7 _ •••••%.„.. +. 11 Or 4.. .. y t 4 a$ n. 1. .r ,ti.,4 t. " .1 r. Exploration Holes N UCG Exploration License Areas 0 L'DC License AreasA 1 KEEX02 0.5 0 EDERGY Alaska State Plane Zone 4,NAD27 Mile Site Locations.mxd • • Exploration Drill Hole KEEX02 Linc Energy Operations Inc. Area Geologic Description KEEX02 is located approximately in the center of Sec.25,T12N, R13W, of the Seward Principal Meridian. The Tertiary sedimentary rocks,which can host the coal seams of potential Underground Coal Gasification (UCG) interest, are continental in origin derived from alluvial fans that deposited sediments into the forearc basin. These Tertiary sedimentary rocks belong to the Kenai Group which are subdivided into various formations. From top to bottom they include the Sterling Formation, Beluga Formation,Tyonek Formation, Hemlock Conglomerate and West Foreland Formation. The contact between unconsolidated Quaternary sediments and the underlying Sterling Formation is difficult to recognize as is the basal contact of the Sterling Formation. The Sterling Formation is uppermost Miocene to Pliocene in age consisting of weakly lithified massive sandstone, conglomeratic sandstone and interbedded siltstone and claystone. The unit includes interbedded lignitic coals typically less than 3 feet thick in its upper part, but may be as much as 10 feet thick in its lower part. However, a review of oil and gas well logs within the Cook Inlet basin suggests that individual coals in the order of 40 feet thick might occur in the Sterling Formation. The Miocene Beluga Formation consists of nonmarine, interbedded,weakly lithified sandstone, siltstone, carbonaceous shale, coal and minor volcanic ash. According to some, a distinctive feature of the Beluga Formation is the lack of massive bedded sandstones and thick coal beds that characterize the underlying Tyonek Formation. However, lignitic to subbituminous coal seams as much as 13 feet thick can occur in the upper part of the unit. The uppermost Oligocene to middle Miocene Tyonek Formation consists of massive bedded sandstones, siltstone and coal. The Tyonek Formation is characterized by the massive bedded sandstone beds and numerous lignitic to subbituminous coal beds, some of which are as much as 50 to 60 feet thick. Because of the thick nature of the coals the Tyonek Formation is the main exploration target. Contact with the overlying Beluga Formation is believed to be a disconformity where sandstone beds and coal beds become markedly thinner. Its basal contact is considered conformable with the underlying Hemlock Conglomerate. The West Foreland Formation occurs beneath the Hemlock Conglomerate. Volcanic rocks affecting Tertiary coal-bearing units span from Eocene through Holocene age. Quaternary volcanic rocks exist in portions of the Cook Inlet Basin, many derived from historically active volcanoes. Similarly,Tertiary volcanic rocks occur within or in proximity of the Exploration Concessions and have been intercepted in some oil and gas wells. 4111/ 411) Drill hole Geologic Description It is anticipated that KEEX02 will encounter unconsolidated Quaternary sediments, the Beluga and Tyonek Formations. Coal seams of interest will be encountered in the Tyonek Formation. The Hemlock Formation will not be penetrated. Anticipated Coal Targets Anticipated coals of interest are based on Stedatna Creek#1, API No. 50-283-10007-00-00 located 1 mile east of KEEX02 in Sec. 30,T12N, R12W and W.Tyonek#1, API No. 50-283-20340-00-00 located approximately 3 miles south of KEEX02 in Sec. 7,T11N, R12W. Data was also obtained from Nicolai Creek#3 API No. 50-283-20003-00-00 and Nicolai Creek No. 5,API 50-283-20036-00-00 both located in Sec.7 T11N, R12W approximately 5 miles south-southeast of KEEX02. Based on the offsets the following table describes the tops and thicknesses of the coals anticipated in Linc Energy Operations Inc. KEEX02. Linc Energy Operations,Inc. KEEXO2 anticipated coal tops Anticipated Seam Depth(FT) Anticipated Seam Thickness(FT) 1,581 15 1,730 24 2,083 15 2,793 17 2,850 TD Shallow Gas Hazard Analysis Based on the mudlogs of Nicolai Creek#3, Nicolai Creek#5, and records from Long Lake#2, API No. 50- 283-20118-00-00 all drilling was conducted with mud weights not exceeding 9.3 ppg. Total gas based on 100 units equaling the equivalent of 2 percent methane had a high reading of approximately 100 units. • • Plitt 3601 C Street Suite 1424 Anchorage,AK 99503 907-272-1232 (voice) 907-272-1344(fax) ►estt�w:u�QirOMa l +lw info@petroak.corn www.petroak.corn To: Bob Schlosser Linc Energy, Alaska From: Michael Helton, Geophysicist, PRA Date: September 21, 2012 Subject: Shallow Gas Hazards Assessment Well: KEEX02 (Underground Coal Gasification Stratigraphic Test Core) Location: 61°5'52.73"N, 151°29'53.98"W (NAD27) X=234872.372, Y=2596301.105,ASP4, NAD27 Total Depth: 3500' The purpose of this letter is to document the seismic analysis of potential shallow gas hazards for the proposed KEEX02 well location, estimated to spud in September, 2012. I have examined area 2D seismic data and offset well reports for presence of shallow gas hazards, faulting, and possible shallow geopressure. My overall evaluation of the available seismic and offset well data shows no indications of shallow gas hazards given the mud weight program (9.2-9.3 ppg)used in the most recently drilled well, the Long Lake#2, spud on 7/11/2006 by Aurora Gas, LLC. We did not find any indication of shallow geopressure associated with the following offset wells: Stedatna Creek#1, Long Lake Unit#1, Long Lake#1 (re-entry), and the Long Lake#2 (see Figs. 1A/1B,base maps). An assessment of geopressure from seismic stacking velocities was not possible due to the lack of seismic coverage at the KEEX02 well location. Linc Energy 2D seismic line SAE-KN-201 used for the KEEX01 Seismic Evaluation for Shallow Hazards is located—13 miles north of the KEEX02 location (Fig. 2, base map). Due to the lack of a seismic tie between these locations, we are unable to correlate the anticipated KEEX02 coal targets to the deeper amplitude events referenced in the KEEX01 hazards summary. Linc Energy personnel have reviewed mudlogs for the Stedatna Creek#1, Long Lake ' Unit#1, Long Lake#1, and Long Lake#2 wells for gas associated with the coals expected to be encountered in the KEEX02 above 3500ft. We support their conclusion . 1 • • that"...gas was of short duration and adequately controlled by mud weights around 9.2 ppg with no indications in the well history files of any well control problems". Our review of the Long Lake#2 mudlog indicates that gas associated with shallow coals seams from 1100'-3843' was controlled with mud weights ranging from 9.2-9.3 ppg. A close review of the Stedatna Creek#1 mud log and well report supports no known issues with shallow gas hazards. In their Application for Permit to Drill, Linc Energy has presented a drilling plan containing procedures and engineering controls to monitor and • mitigate risks due to encountering shallow gas. Shallow Gas There is no seismic line through the proposed KEEX02 location. Time-to-depth conversion is uncertain given the lack of checkshot surveys and difficulty of good wavelet character ties to help position synthetics on the seismic. The KEEX02 depicted on these seismic profiles uses the integrated sonic data from the Stedatna Creek#1. The ALK seismic data contains a 1700 ft. datum and 7500 ft/sec replacement velocity. The KEEX02 can be projected on to two seismic profiles: ALK-3 (Fig. 3, 2480' NW of line) and ALK-9 (Fig. 4, 3960' NE of line). The ALK-3 seismic profile shows the KEEX02 projected location with respect to the Stedatna Creek#1 well. The ALK-9 seismic profile shows the KEEX02 projected location with respect to the W. Tyonek#1 well. We did not have access to relative amplitude scaled seismic data for any of the ALK seismic lines. Final scaled, AGC time-migrated seismic profiles were inspected for amplitude anomalies possibly indicating the presence of shallow gas. No obvious . shallow amplitude anomalies were noted on either of the seismic lines (ALK-3 or ALK- 9) at the projected KEEX02 locations. A third seismic profile ALK-10 (Fig. 5) shows the Long Lake Unit#1 well (580' NW of the line) which is co-incident with the Long Lake#1 exploratory re-entry well. The Long Lake Unit#1 location is over 2 miles to the southeast of the proposed KEEX02 location • so no projected wellbore for the KEEX02 location is shown. The Long Lake#1 exploratory re-entry of the Long Lake Unit#1 well was drilled by Aurora Gas, LLC to evaluate the potential for shallow natural gas deposits. The Long Lake#1 re-entered and ' opened the original Long Lake Unit#1 wellbore to 3550'. Five(5)prospective intervals were perforated and tested. After isolation the interval from 3130'-3278' was fracture- stimulated. This was necessary as initial swabbing operations were unable to induce any flow of gas or fluid. After all efforts to stimulate flow it was determined that the well was unable to produce natural gas. The inability to flow shallow gas in the Long Lake#1 re-entry well provides an empirical ' calibration point where no shallow gas hazards were encountered and fair quality S/N seismic reflectivity exists. Based on a qualitative comparison of the Long Lake#1 2 seismic reflectivity and the seismic reflectivity observed at the KEEX02 projected location on seismic line ALK-9, there does not appear to be anomalous amplitude events at the KEEX02 location indicative of possible shallow gas hazards. We compared sonic travel time from the Stedatna Creek#1 and the Long Lake Unit#1 (Long Lake#1 re-entry) wells (Fig. 6). Coal seam picks from the Long Lake Unit#1 are annotated along with the KEEX02 coal seam targets listed in the Linc Energy Permit to Drill. Slower sonic travel times are noted for the shallow coal seams in the Stedatna Creek#1 as compared to the coal seams in the Long Lake Unit#1 sonic. A detailed review of the Stedatna Creek#1 mud log and completion report confirmed that the well had no shows or indications of oil or gas. The drilling procedure stipulated that the crew was "...to drill 20' into significant shows, cut cores, and if warranted, take drill stem tests." Only side wall cores were taken in the shallow section above 3500' and no DST's were reported which would indicate that no significant shows were encountered , during the drilling of the Stedatna Creek#1. Faults Inspection of seismic profiles ALK-3 (Fig. 3) and ALK-9 (Fig. 4) do not show faults • within seismic resolution limits intersecting the proposed KEEX02 well bore. No drilling breaks or other indication of faults were reported in the Stedatna Creek#1 well summary. • Pressure Review of offset well data indicates that the KEEX02 well will penetrate a normally pressurized section from surface to TD. The Long Lake#2 mud log and sonic log data from the Stedatna Creek#1 and Long Lake Unit#1 indicate that these wells were normally pressured in the interval that will include the KEEX02 3500' TD (see Fig. 6, overlay of sonic data and KEEX02 coal targets). The Long Lake#2 mud log indicates • that Aurora Gas, LLC maintained mud weights ranging from 9.5-10.1 ppg down to the intermediate 9.625" casing point of 800'. Thereafter a mud weight range of 9.2-9.3 was maintained to a TD of 3843'. 3 0 S o . r',i 'I 1•D t �0 tsar., yl! r. � �. - -- O -- v i--'- ,...0.......,1----- - re{iiilBAtifgs -- � � o. sa • s h 4 0 JSr_ { i wasa• TIMM MOWN .swi�/wds 7s, { ., � ; gra«.+114d .. MINIFIO Nee • , rwM.wwyln .r.q ulw.. • O WINIAlli ;::.%:10) ! I. , ft DT 1.0.1.1 . .4• •. , T w Figure 1A. Base map showing KEEX02 location,offset wells,and seismic lines. Sections shown for scale. 1 r 1 ' 43II 4 = SCS t 'CI { I wse .�•xa 7;3 i F 1TP" _ 14 'r o 417 6. 1 .,,�.� , ,� d'+ laq Lade a: Ai ♦ 1g40 � w le) w�au. rtsT , N, .1, ,, 'Sts ' _.__ c`A a _ -d r I i a I 1 i w rn -�! obs '� 10 ----------------- -- ' t- ti� `ti S. '� 1 r1 NO /" {J --..I #,,rte, ',t -t--- -s Figure 1 B. Enlargement of base map showing KEEX02 location,offset wells,and seismic fines. Sections shown for scale. 4 • 0 , 3 LL..) ; . ...... ,.......... ..,,,,, .),___ _,.. ..,..L____ __ 1 . . : ----1-- . . „ . . . . , . ; -1 t 1 . , . , . ......................._ --I i f .....1"-----L-----..... -----' I ,-----t---- -- - t i ' 1 • 1 ; ' 1 , --- ------------r-------- . t , . . • ....,..---1_.,..__. _ . 111 -1, , ' : N r's- ..---------"i0--:-----)---1--- , ...: t ,, -9 .,.. . ; ........ ..... ..,_ 4 ,.... f ! • , —13rriles H [ : I -'. ' ; :: ''t'f''''''' •-• '" "" --'1 . i . 1 , ' 4* .3 ' • • 0, 1 • . r --e-----; .- . " ' - —--t ---- ''-- -•— ..../:,L-.. _2 6 . 1;13% : i •....i• --,--- --- 1...AV'-----61.__ __ ,___i,., . ,.•,'...„,,,.*:;. , -,,,.- ....4 4:,;::,,.y. t---.- ----- Nt : ; : i 6 r;.'f;,:.'1•et.4'',_,11 .0 4 40..,ir..F -.4,7,,,.. I 6, ' S4, ,/ 1, t'1 K. s 1 .' : t ... '44 "' 71, , . \ : il.:44 ,,' ‘''6' ' . Figure 2. Base map showing KEEX01 and KEEX02 locations. Mitt' AI k fir.,I.A.1. i.ring.. II,.,-. - " si a 3 NEM* SIELM4114C41 Ot CM 5021 5531 M41 5511 5i4,3421 5331 5341 r>533r 5161 52 141 SILL 5341 5021 031 4#4.1 am asoc IF SM Mt PO 231b MC Me 2413 MN 200 NW NU 2310 Mt 2543 2553 :"3.33 2510 NW a4n NM 1433 2.1 _._________-------___________. 03 .t ......._._________...... ............... . _ .._ 190/ § i250 —— — — A *. ' —.:',..•,‘"--.....:...•.---;" ';...,..33.7... - tom . _ , _.._ ._ ,• _ ,. _ . 3,64, :11'3 .• 11W REDACTED M. Guhl 3/3/2016 • • , 1 03 kEEYD21 'TYOWEk GP S}4ORE FA( o.:: 57 " Jr..,:,�3 J 3800 3220 3640 3 560 3480 3460 i8 \9 0 3240 3360 3080 3000 2944440 2760 2680 2600 2520 3440 2360 2280 oh4P Sho 2020 1980 1940 1900 1860 1820 1780 1740 1700 1660 1620 1580 1540 1500 1460 1420 1380 1340 1300 12601220 1180 1140 Owl c'3. 0.__..._...1.—..1.--J—t....a._..L..... 1 --J......--.6--t-3-......1---.1-.-1.--L--J--J-.--.1..—L-.. , -e ^ €43 4 [43E 12700-- .4-y..r -- 114 30' 84.4..f ! . _- 101 + 1 ♦19 -. 4,44s ir,,. P. .w 9890 iv g • . 1 s *+a. l + 6350 Raw 4i3...r'''."•'. . --4--,‘ .3- -;••41.44.«:7,1'4. -• i1 1' y�1 °> --. -}+ i v 53R7- wi `` it,.•,.p', . /ice,.. +r�.;a 4� -.'� ?. .C•. �.,` 4.4,,C..+4,..',V.*t r........ ,�,.e- ,. .ii<''Q}' 4 y K-71-1.-----,.., Sit 10- .; —_ t"i ♦.,,.•,. 4ti "». 1ra3 ..`A\\41 4, 1 :----c-1,...- --4•• _a.. a 40- 34+ WenTh'.y\w}j".4d4„ .'....-1e4:::'- '` �..„.,i74,, i -1 - 1270, ,. '•4.•}h '� "•.:.464. .• \4 `1,7..1 4900" 190 -�- REDACTED M. Guhl 3/3/2016 6 • i 17 AA' ALK AI.K-1O ink)8 _ __ ® W TYONEK 8 b LONG LK UNIT CM.7580 3460 3301 3380 3340 3300 3260 3220 3180 3140 3100 3060;-3020 2980 2940 2900 2860 2820 MP TA Sho 1750 1730 1710 1690 1670 1650 1630 1610 1590 1570 1550 1530 1510 1490 1470 1450 1430 1410 ;hot iml 127 0011545, 8 103.81' 92,8 ® BOe2< • 6927 5773 500 ' .. ,•y, .'Z :. -‘,,• � " .,w� .+• 1618- : .,."1'. ' .« .+ Seam ,,,"s' � e ,• Stent 1�R ^.•1. �»r+• 23o- 1155- � ``y ;+ .__ .,r'�r _1155- { .'.:r •_.,_ �,. ..--.._.-- ,9ti�1- "w.A ---rti'..-"c-a•--v-s-,+ -2309- loon r , . ,,. -34W REDACTED M. Guhl 3/3/2016 7 • Well Sonic Interval Travel Time ( ft) 0 100 200 300 0 500 P 1000 Bai,_905 REDACTED M. Guhl 3/3/2016 4500 Figure 6. Plot of Stedatna Creek#1 and Long Lake Unit#1 sonic data with Long Lake Unit#1 coal seam picks and KEEX02 coal seam targets. 8 • • EDfR6Y KEEX 02 General Prognosis Well Name: KEEX 02 Surface Location: Section 25, T12N, R13W, SM Bottom hole Location: Same (vertical hole) Planned TD: 2,850' MD /TVD Well Summary After setting a 9-5/8" structural casing at 10', an 8-1/2" conductor hole will be drilled to 100'. The 7.0" conductor will be set at 100' and cemented to surface. The cellar will be grouted with concrete to stabilize the conductor casing and a diverter installed. Rotary drilling operations will drill approximately 2,750' of 6.0" OD hole to 2,850' MD/TVD. Drilling Fluid Management A gel freshwater mud system provided by MISWACO will be used for the rotary and coring operations from surface to TD. At the end of coring operations the settling pit will be reclaimed in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21. Waste Management All waste including drill cuttings will be handled in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21 as governed by the Coal Regulatory Group of the Alaska Department of Natural Resources. Well Trajectory and Deviation Survey The KEEX 02 is planned to be a vertical well. An inclination survey will be run at the end of the well after the open-hole logging runs. Formation Tops and Casing Depths See attached geologic summary. No production casing is planned at this time. Logging Program 0' — 100' No open-hole logs (Conductor Hole) 100' — 2,850' GR/Resistivity/Neutron Density/Sonic 0' — 2,850' Inclination survey • KEEX 02 • Linc Energy Operations erations Inc. Proposed Operations Summary 1. MIRU LincEnergy Core Rig#1. 2. Set 9-5/8" structural casing at 10' MD/TVD. Mix gel freshwater mud system. 3. Drill 8.50" conductor hole to 100' MD/TVD. ./268 F1-7r f 4. Run &cement 7.0" conductor casing with 25.4 cu ft. 15.2 ppg Class G cement (100% excess)to surface. x i oo' _ I Z•7�F 1/81,Ps 5. Nipple up Diverter system and gas detection system and notify AOGCC. /'Joliet_ 6. With AOGCC witness function test Diverter system. 7. Drill 6.00" surface hole from 100' to 2,850' MD/TVD with 8.7 to 9.3 ppg mud. 8. RU wireline. 9. Run open hole logs (GR/Resistivity/Neutron/Density/Sonic)from 100' to 2,850' MD/TVD. 10. Run inclination survey tool from 100' to 2,850' MD/TVD. 11. Plug and abandon per AOGCC requirements. Submit 10-403 to AOGCC for approval. 12. RDMO LincEnergy Core Rig#1. • • _ ul M O WJ ' z < z t a a 1i 1 o m i aP 1 t It I- E V = 1 s o •la _ o a an °i0 � � o i Ts C G1 3 fV �� N co = � � • . . . V,OI til Z n < t V(6o; N 1� = 0 C u, 13 a a 1 C ra . \ , / , L U 3 "O O ,_ O O O I VOf } ++ p ul = )1 = CI : 13o 661 O 0 11 0 0 0 a 0 0 0 0 0 Ul in o in o in o ri N N M M Cr pad) yodaa • • PROPOSED WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. 9-5/8"structural casing {.;. set @10' 8.50" hole to 100' 7" conductor casing set @ 100' ' • :s Cemented to surface with 25.4ft3 of cement (100%OH excess) 6.0" hole to 2,850' (No core to be taken) Rev 9/17/12 • KEEX 02 Offset Mud Weight vs. Depth 0.0 o — Long Lake Unit#1 -- Long Lake#2 KEEX02 Planned Al""mNN 500.0 KEEX 02 Mud system to be a8.7-9.3ppg NN Water-based mud system 1000.0 1500.0 _ 1st Coal 1 ' s T3 2000.0 z 2500.0 -Total Depth 3000.0 3500.0 — - i 4000.0 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 Mud Weight(ppg) l�I1C KEEX 02 EIIERGY Diverter System Bell Nipple 6 Flow Nipple To Shakers 7-1/16" Flange 3,000 psi 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 6" Knife Valve 150 psi Diverter 6" Diverter Line Spool 83' Long 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 7" 26# Conductor • S unc LincEnergy Core Rig #1 0 ME Diverter Layout LAYOUT FOR KEEX 02 Side View of Diverter Rig Floor Flowline / \ Diverter Ground Elevation Rig Subbase Edge of Pad,% 6" Diverter Line Cellar 4 ► 83' Conductor Knife Valve Top View of Diverter Knife Valve 83' Diverter 6"Diverter Line Trench Cellar Edge of Pad • • 0 �i nc LincEnergy Core Rig #1 EIIERGY Diverter Layout PHOTOSk go ic,-, IIF it , 1 ',' il , b • d a 411hn y s $ •4 -r(p• .iNi rJ �1 - — .'-41Arn' ' 4:, '' .... ''" o Diverter Line Outlet r •- 6" Diverter Line :- F � - T.. 'P x •r:: ,fir -,' p, • . . ir 10 ♦ .. gyp' r r • • unc LincEnergy Core Rig #1 0 EII Pit System Layout PIT SYSTEM FOR KEEX 02 Side View of Pit System I \ / Drill String Mixing Tank Mud Pumps Flowline Cuttings to Sump 1 Shale Shaker Mud Tank#2 4—► Mud Tank#1 Top View of Pit System v Mixing Tank oA H o Mud Pumps o 47 4 Shale Shaker Flowline • O Drill String o � • • 0i nc LincEnergy Core Rig #1 EIIERGY Pit System Layout MIXING TANK MUD TANKS #1 & #2 .•i-*... :r • 1 Ic ' . _ • ? 1- SHALE SHAKER MUD PUMPS r 4 S4. z t • • • A O 00 L O U fNI z x �= Vrze N L a) E t'.-0O a0 cip N N V T O N � II tzQ • 0 cu on a/ ' a- O x w ct O �, 0 N 1 • [ ; r . , far. • N-, N I � 8 I :____ 8 B ° ce 1111 N It It .J ht . f i f.'4,......k.aIlt NI L. O = O N CI U g Cr G) • 0 f`A s`+jy/`4t+. ty,i ..*.... i�'. K Sn,rri;Y/wr :A *°'*; a '±AK"iw+U1 46 ,1 '. 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' . k•- .. .1,- i, Pe.,,,,,,.•.,-. ... .-• t t.,, ,.,k,-. ,„ •, - - ,,', tif .,,..a ry S , A • • RECEIVED SEP 14 2012 AOGCC EDERGY Linc Energy Operations, Inc. 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 September 14, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill — Variance Requests Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: SESE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations, Inc. hereby applies for several variances to the Permit to Drill (PTD) for KEEX 02, an Underground Coal Gasification stratigraphic test well. These variances are being requested after an inspection was conducted of our new-build LincEnergy Core Rig #1 onsite at the LDRT #1 wellsite (PTD 212-059). This rig is a modified core rig that is designed to be helicopter portable and slung into remote locations. The drill string and casing used on this rig are standard sizes used in the core drilling industry, which are much smaller than those used in conventional oil & gas drilling operations. The inspection was performed by Chuck Scheve and Guy Schwartz, Petroleum Inspector and Petroleum Engineer respectively with your office on September 6th, 2012. The following variances are being requested: 1.) Variance to the requirements of 20 AAC 25.035(e)(9)(A) addressing Secondary Well Control requirements to have a Kelly Cock Valve below the swivel. The LincEnergy Core Rig #1 does not have a Kelly or a Top Drive. The mud pumps are connected directly to the drill string with a Valve installed to prevent back flow up the drill string into the mud pumps, which is a common configuration for core drilling. 2.) Variance to the requirements of 20 AAC 25.035(e)(4)(A)(ii) addressing Secondary Well Control requirements to have independent primary and 0 ! secondary power sources to the accumulator. The LincEnergy Core Rig #1 is operated hydraulically, so no power is available from the rig to power the accumulator. The primary power source is a dedicated portable air compressor. No secondary power source is planned. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore an accumulator system is not a standard piece of equipment used in core drilling but will be utilized with our modified core rig. 3.) Variance to the requirements of 20 AAC 25.035(e)(4)(D) addressing Secondary Well Control requirements to have remote BOPE controls on or near the driller's station. The LincEnergy Core Rig #1 has limited space to allow for remote BOPE controls on the driller's station. However, the controls are located at the bottom of the walkway from the driller's station which requires walking down 4 steps from the rig floor down to the bottom of the walkway where the BOPE controls are located. Conventional core drilling does not utilize an oilfield style annular preventer such as the one we are using for our diverter setup, therefore BOPE controls are not a standard piece of equipment used in core drilling. 4.) Variance to the requirements of 20 AAC 25.066(a)(3) addressing Gas Detection requirements to have H2S (Hydrogen Sulfide) gas detection. Based on offset well data and the limited drilling depth of 3,500 feet we will not be drilling into any zones where an H2S environment would be present. If you have any questions or require further information, please contact either Corri Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, 6)4AA ,. (Y..66r. Corri A. Feige General Manager— Alaska STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMON RECEIV E PERMIT TO DRILL AUG 2 5 2011 . 20 AAC 25.005 AA 1 1a.Type of Work: lb.Current Well Class: Exploratory ❑ Development Oil ❑ 1c. Specify if weAOsed fdr C . �,Q/ ssron Drill 0 Redrill ❑ Stratigraphic Test O Service ❑ Development Gas ❑ Coalbed Methane ❑ Afitglitgoetes ❑ Re-entry E Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ ---.4.4 2.Operator Name: 5. Bond: Blanket a Single Well ❑ 11.Well Name and Number: Linc Energy Operations, Inc. Bond No. 9,68„ i �a ig ,41, KEEX 02 3.Address: 6. Proposed Depth: 12. Field/Pool(s): zi Arj 3000 C Street,Suite 103,Anchorage,AK 99503 MD: 3500' TV : 3596' Gs 4a. Location of Well(Governmental Section): 7. Property Designation:' Exploratory�a,� Surface:� SL,�i� $FEL,Sec 25-12N-13W,Seward Meridian Alaska Mental Health Trust 77&..4 /G Top of Productive Horizon: 8. Interior Region UGC ExploratoryLi nse:l .Approximate Spud Date: MHT#9400462 I 11/28/2011 Total Depth: 3500' 9.Acres in Property: 111 14. Distance to Nearest 82,122.70 acres �� Property: 1044 ft 4b. Location of Well(State Base P : oordin •a/6. W" 10. KB Elevation leis aft 15. Distance to Nearest Well Surface: AKSP Lat:25959E {� 'AKSP Long�.L�'. ��8�4-450 Zone 4 (Height above L): . ,, 7554 feet Within Pool 3188 ft 16. Deviated wells: Kickoff depth: 17. Ma u t'A pated ' sures in psig(see 20 AAC 25.035) Maximum Hole Angle: 0 degrees Down . \ Surface: 18.Casing Program: Specifications �\\" i14• - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length it 1 TVD ' MD TVD (including stage data) driven 6" 18.97 A53 BW 300' \\CI/' 0' \ 300' 300' driven 3.77" na 3500' ,ti' 3500' _ 3500' V l/ i' . 19. PRESENT WELL CONDITION SUM (To re om for Redrill and Re-Entry Operations) Total Depth MD(ft): Total Depth TVD(ft): Plugs e used): I / Effect. Depth MD(ft): Effect. Depth TVD(ft): Junk(measured): j Casing Length ; •e ti\ Cement Volume MD TVD Conductor/Structural Surface ' .`r\\ Intermediate Production \ Liner Perforation Depth MD(ft): Perforation Depth TVD(ft): 20. Attachments: Filing Fee ❑ BOP Sketch❑ Drilling Program Time v. Depth Plo❑✓ Shallow Hazard Analysis ❑ Property Plat ❑ Diverter Sketch❑✓ Seabed ReportE Drilling Fluid Progran❑✓ 20 AAC 25.050 requirements V . 21. Verbal Approval: Commission Representative: Date 22. I hereby certify that the foregoing' 'true and correct. Contact Corri Feige 907.868.8660 Printed Name ,` Corri F- ge Title General Manager-Alaska Signature r _ /__fit�l Phone (907)868-8660 Date f=_li G/ .,,,( Commission Use Only f Permit to Drill / API Number Permit Approval See cover letter for other Number: c:=2/1//40 50; 11YeR0/ OQO® Date: requirements. Conditions of approval If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: l] Other: Samples req'd: Yes❑ No Mud log req'd: Yes CJ No H2S measures: Yes❑ No Directional svy req'd: Yes ❑Y No ❑ APPROVED BY THE COMMISSION DATE: ,COMMISSIONER ORIGINAL Form 10-401 Revised 12/2005 Submit in Duplicate it :'''', .. t 1 , . d I . • . I - / 14� — i 11 rte- _ i, r p 7 _4 r, v........----,� , o ;t i_ �y e i 4,--' a W, • t 22 0 { .� ,?4 i' .... t 1 j , .... w... _ ;. r ( +c7.1 KEEX,Q2 a M1: I art r / r G 1 ^4 !r ' G� Feu' `,. At — c .. ,t . T..J • , 4 - • „- . . _ _ , _ . ...e.,:_ii ..,, . ,. . . , . State Plane,Alaska Zone 4,NAD83 Seward Meridian USGS Quads:Tyonek A-4,A-5 0 EIIERGY 4 Drill Site Location KENAI LICENSE AREA o Water Source DRILLSITE AND WATER LINC UCG Exploration License Acreage SOURCE LOCATION SCALE: FIGURE: 0 01 (.3 J (0.6 l 1.2 Mi ( I 1 r r 1 1 1 1 ' 2 0 0.45 0.9 1.8 Km LI NC:sc0011.mxd 07/1912011,R02 KEEX 02 •Linc Energy Operations Inc. • Pressure Calculations & Mud Weight Discussion Maximum Anticipated Surface Pressure: 3.77" Core Hole Section This hole section will be cored with a diverter only, no BOPs. MASP for the core hole section is determined as the surface pressure at breakdown of the conductor casing seat with a gas gradient to the surface, it cannot be shut in, only diverted. MASP Calculation Assumptions 1) Formation pore pressure across the coring interval(300'-3500') are anticipated to be 0.45-0.55 pis/ft based on offset data. 2) Fracture gradient at 300' is estimated to be 14.35 ppg EMW (0.746 psi/ft) based off of offset Long Lake 2, located 1.61 miles ESE which performed a 14.35 ppg EMW LOT at 820' TVD. MASP Calculation MASP calculated with 6"casing set at 300', while coring 3.77" hole to 3500' MD/TVD MASP = [(FG x 0.052) - 0.11]D ASP = Anticipated Surface pressure in psi FG = Fracture gradient at the casing seat in lb/gal 0.052 = Conversion from lb./gal to psi/ft 0.11 = Gas gradient in psi/ft D = true Vertical depth of casing seat in ft RKB MASP = [(FG x 0.052) —0.11] D = [(14.35 x 0.052) —0.11] x 300 = 191 psi Diverter Discussion With MASP for the 3.77"open hole section calculated to be 191 psi, the 2,000 psi Diverter system to be used will be adequate. Mud Weight Discussion Assuming formation pore pressures of 0.45-0.55 psi/ft, it is anticipated 9.0 - 10.6 ppg MW will be used while coring 300'-3500' TVD. • • KEEX 02 Offset Data Stedatna Ck1 3188'E 1961 Pan-Am Petroleum Corp DA depth MW Notes 1977 set 13 3/8"SC 7459 TD ***NO MW DRILLING DATA*** Summary: Completion Report:"no oil or gas formations evident". Drilling records provide no MW or pressure data. Long Lake 1 1.50 mi SE Aurora, 2005 drill, 2010 PA depth MW Notes 880 "Top Tyonek"noted on wellbore schematic 2208 2208-2238, 2274-2294 test perfs, no flow 2742 2742-2752, 2766-2786 test perfs, no flow 3215 3322-3340 production test perfs, no flow 3468 7" Liner Shoe ran on Re-Entry in 2004 17 FG @ 2852 ***NO MW DRILLING DATA*** Summary: 2004 Re-Entry Washdown, ran 7"liner, swab tested mutiple zones, no reported gas to surface, Suspend Well. 2009 PA. Long Lake 2 1.61 mi ESE Aurora depth MW Notes 820 LOT;9 5/8"SC shoe:broke @ 14.35 ppg EMW (0.746psi/ft, 220 psi) 1985 Top Tyonek 3843 Reach TD, Log Well, PA Wellbore ***NO MW DRILLING DATA*** **APD MASP Comment: 17 ppg EMW estimated FG below 800ft** **APD MASP Comment: 0.46-0.55 psi/ft estimated FPP based on offsets*** Summary: - r 1 M1R.� •9 k. t N1 ( �- r i 1 KEEX02 • • I i i ) 4. 1 ,_,• ' I s i '. ' ' hi f Y 1 si n ,.. • I 'r` 1 r _ _ _ J I 1 J F. ` i Exploration Holes N UCG Exploration License Areas License Areas KE EXO2 W 4 Orbit 1 0.5 0 1 0 Alaska State Plane Zone 4,NAD27 Miles— ENERGY Site Locations.mztl PROPOSED WELLBORE DIA ►ou. KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. Cellar&conductor annulus grouted at surface to stabilize conductor pipe Quaternary sediments -40' 6"conductor casing driven to refusal @+/-300' Tyonek Formation -800' 3.77"Core Hole to+/-3500' 2.50"x 10'Core Barrel Total depth in Tyonek Formation -3500 Rev 8/19/11 • • Exploration Drill Hole KEEX02 Linc Energy Operations Inc. Area Geologic Description KEEXO2 is located approximately in the center of Sec.25,T12N, R13W, of the Seward Principal Meridian. The Tertiary sedimentary rocks, which can host the coal seams of potential Underground Coal Gasification (UCG) interest, are continental in origin derived from alluvial fans that deposited sediments into the forearc basin. These Tertiary sedimentary rocks belong to the Kenai Group which are subdivided into various formations. From top to bottom they include the Sterling Formation, Beluga Formation,Tyonek Formation, Hemlock Conglomerate and West Foreland Formation. The contact between unconsolidated Quaternary sediments and the underlying Sterling Formation is difficult to recognize as is the basal contact of the Sterling Formation. The Sterling Formation is uppermost Miocene to Pliocene in age consisting of weakly lithified massive sandstone,conglomeratic sandstone and interbedded siltstone and claystone. The unit includes interbedded lignitic coals typically less than 3 feet thick in its upper part, but may be as much as 10 feet thick in its lower part. However, a review of oil and gas well logs within the Cook Inlet basin suggests that individual coals in the order of 40 feet thick might occur in the Sterling Formation. The Miocene Beluga Formation consists of nonmarine, interbedded,weakly lithified sandstone, siltstone, carbonaceous shale, coal and minor volcanic ash. According to some, a distinctive feature of the Beluga Formation is the lack of massive bedded sandstones and thick coal beds that characterize the underlying Tyonek Formation. However, lignitic to subbituminous coal seams as much as 13 feet thick can occur in the upper part of the unit. The uppermost Oligocene to middle Miocene Tyonek Formation consists of massive bedded sandstones, siltstone and coal. The Tyonek Formation is characterized by the massive bedded sandstone beds and numerous lignitic to subbituminous coal beds, some of which are as much as 50 to 60 feet thick. Because of the thick nature of the coals the Tyonek Formation is the main exploration target. Contact with the overlying Beluga Formation is believed to be a disconformity where sandstone beds and coal beds become markedly thinner. Its basal contact is considered conformable with the underlying Hemlock Conglomerate. The West Foreland Formation occurs beneath the Hemlock Conglomerate. Volcanic rocks affecting Tertiary coal-bearing units span from Eocene through Holocene age. Quaternary volcanic rocks exist in portions of the Cook Inlet Basin, many derived from historically active volcanoes. Similarly,Tertiary volcanic rocks occur within or in proximity of the Exploration Concessions and have been intercepted in some oil and gas wells. • Drill hole Geologic Description It is anticipated that KEEX02 will encounter unconsolidated Quaternary sediments, the Beluga and Tyonek Formations. Coal seams of interest will be encountered in the Tyonek Formation. The Hemlock Formation will not be penetrated. Anticipated Coal Targets Anticipated coals of interest are based on Stedatna Creek#1,API No. 50283100070000 located 1 mile east of KEEX02 in Sec. 30,T12N, R12W and W.Tyonek#1, API No. 5028320340000 located approximately 3 miles south of KEEX02 in Sec. 7,T11N, R12W. Data was also obtained from Nicolai Creek#3 API No. 50283200030000 and Nicolai Creek No. 5,API 5028320036000050 both located in Sec.7 T11N, R12W approximately 5 miles south-southeast of KEEX02. Based on the offsets the following table describes the tops and thicknesses of the coals anticipated in Linc Energy Operations Inc. TYEX01. Linc Energy Operations Inc. KEEX02 anticipated coal tops Anticipated Seam Depth(FTBGS) Anticipated Seam thickness(FT) 1581 15 1730 24 2083 15 2793 17 3237 18 3500 Estimated Total Depth FTBGS-Feet below ground surface FT- Feet Shallow Gas Hazard Analysis Based on the mudlogs of Nicolai Creek#3, Nicolai Creek#5, and records from Stedatna Creek#1 all drilling was conducted with mud weights not exceeding 8.4 Total gas based on 100 units equaling the equivalent of 2 percent methane had a high reading of approximately 100 units. • oLinc ENERGY KEEX 02 General Prognosis Well Name: KEEX 02 Surface Location: Section 25, T12N, R13W, SM Bottom hole Location: Same (vertical hole) Planned TD: 3,500' MD /TVD Well Summary A 6" conductor will be driven to 300' prior to the coring rig moving in. The cellar will be grouted with concrete to stabilize the conductor casing. Rotary coring operations will cut approximately 3,500' of 2.50" core using a 10' wireline retrievable core barrel with a 3.77" OD core bit. Drilling Fluid Management A gel freshwater mud system provided by MISWACO will be used for the coring operations from 300' to TD. At the end of coring operations the settling pit will be reclaimed in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21. Waste Management All waste including drill cuttings will be handled in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21 as governed by the Coal Regulatory Group of the Alaska Department of Natural Resources. Well Trajectory and Deviation Survey The KEEX 02 is planned to be a vertical well. Formation Tops and Casing Depths See attached geologic summary. No production casing is planned at this time. Logging Program 0' — 300' No open-hole logs 300' — 3500' GR/Resistivity/Neutron Density/Sonic • KEEX 02 Linc Energy Operations Inc. Proposed Operations Summary 1. MIRU Tester Simco Drilling conductor rig 2. Drive 6" conductor pipe to +/-300' 3. Hand mix cement and grout conductor cellar to stabilize conductor pipe at surface 4. RDMO Tester Drilling conductor rig 5. MIRU Boart Longyear coring rig, dig settling pit 6. Notify AOGCC of start up, perform diverter drill 7. MU 3.77" core bit, 2.50" coring assembly 8. Core ahead using 10'wireline retrievable core barrel assembly from 300' to 3500' 9. RU wireline, run open hole logs including GR/Resistivity/Neutron Density/Sonic 10. Plug and abandon per AOGCC requirements, RDMO core rig • • rn w v - c .1- . . Q p cO V �* o LIP o to v ca—'� M CC co N O 0) co Co co co CO co iii in O CO T m M x O CO N U M N. N CO MAD AS �__ Cr) CU _ O 0 y M Q N CD ca) N 0 co C N- N U 3 CD N N N •tt (Z CON CI N N - N 0 N X O W N w a) Y co N ,- co co T ido T M > N 10 T T O T cM O — Q T a_ w a) L � U CV o 5 o CD 7 CC c CO m M co r°11. M N T p p O O O O O O O O O to C U7 N N OCO M I;midea • PROPOSED WELLBORE DIAIIRAM KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. Cellar&conductor annulus grouted at surface to stabilize conductor pipe 6"conductor casing driven to refusal @+/-300' 3.77"Core Hole to+/-3500' *2.50"x 10'Core Barrel Rev 8/19/11 • • Proposed Diverter Layout 4 Flow Nipple 12" 4"x 2000 psi 18 5/8" Annular Preventer 50" 12" 4" Full Open Master Valve 2"HP 2"HP 2"HP 2"HP 7" 2"Kill X X X X 2"Diverter Line Line HWT „ Ground Level rev 8/15/11 • • Y co F- 6 m a) (/) 7 -p LL 0 c,) a) 0 U a) a) E‘.3_ o` 0 O F- 0.a E tea' 0 o m n rn / a) f0 (-raj N co Sc) 1� O CD co Op) G 7 29 � JAG � °) O O o J U o r- 2 O CL a co T U C) U N_ II CL X E 0 2 O N X O )- C) X W W • • co N. Ec _ in O ,O - as E Ear a) co_ CD N U 0) U Q) .' O U U • A _ cno 0) L• I— C. D O 0. LL � (B O co 0) c, . . 2 E o U L U L- (/) 5 0 70 ` C .5 O o U O Ern - o O 0Q2 ,� 0_ N O X \ _ LLI W 0 I - rn 0 0 o o o o o 0 0 o coco NO N c0r) car) d- ;I`y;dad i i ` EDERGY Unc RECE1V Linc Energy Operations, Inc. AUG 2 5 2011 3000 "C" Street, Suite #103 Anchorage, Alaska 99503 ,l. 8j Cos cm.co fgSajpR Anchorage August 22, 2011 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test Core) TRS: SESE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Seamount, Linc Energy Operations Inc. hereby applies for a Permit to Drill an onshore Underground Coal Gasification stratigraphic test well on the west side of Cook Inlet approximately 8 miles northwest of the town of Old Tyonek and 7 miles north of Trading Bay. The well will be cored on Alaska Mental Health Trust Land under the authority of a current Underground Coal Gasification (UCG) Exploration License (Kenai License MHT#9200462) held by Linc Energy Operations Inc. and governed by the Coal Regulatory Group at the Department of Natural Resources. Linc plans to commence operations on approximately November 28th, 2011, employing the Tester Simco 4000 Drilling rig to drive conductor casing to approximately 300', and the Boart Longyear coring rig to core approximately 3500'. A diverter system will be installed on the Boart Longyear coring rig per Alaska Oil and Gas Conservation Commission ("AOGCC") well safety requirements. Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) Geologic Discussion, Anticipated Formation Tops • I 4) Shallow Gas Hazard Evaluation 5) General Well Prognosis, Waste Management, Logging Program 6) Proposed Operations Summary 7) Drilling Time versus Depth Plot 8) Proposed Wellbore Diagram 9) Description of the Well Control Equipment to be Used 10) Description of Rig Layout & Pit System 11) Drilling Fluid Program The following are Linc Energy designated contacts for reporting responsibilities to the Commission: 1) Completion Report Corri Feige, Alaska Project Manager (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Corri Feige, Alaska Project Manager (20 AAC 25.071) (907) 868-8660 The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Linc. If you have any questions or require further information, please contact either Corri Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, Corri A. Feige Alaska General Manager STATE OF ALASKA RECEIVED ALAI,OIL AND GAS CONSERVATION COMMON JUL 31 2012 PERMIT TO DRILL 20 AAC 25.005 �� c la.Type of Work: lb.Current Well Class: Exploratory ❑ Development Oil ❑ 1c.Specify if well is propbs�d`Tor: �'" Drill E Redrill ❑ Stratigraphic Test E . Service ❑ Development Gas ❑ Coalbed Methane ❑ Gas Hydrates ❑ Re-entry ❑ Multiple Zone ❑ Single Zone ❑ Shale Gas ❑ 2. Operator Name: 5. Bond: Blanket Q Single Well ❑ 11.Well Name and Number: Linc Energy Operations,Inc. Bond No. 17s101858 - KEEX 02 3.Address: 6. Proposed Depth: 12. Field/Pool(s): 3000 C Street,Suite 103,Anchorage,AK 99503 MD: 3,500' TVD: 3,500' 4a. Location of Well(Governmental Section): 7. Property Designation: Exploratory Surface: 359'FSL,1044'FEL,Sec 25-12N-13W,S.M. Alaska Mental Health Trust Top of Productive Horizon: 8. Land Use Permit: 13.Approximate Spud Date: M HT#9400462 9/1/2012 Total Depth: 359'FSL,1044'FEL,Sec 25-12N-13W,S.M. 9.Acres in Property: 14. Distance to Nearest 82,122.70 acres Property: 1,044 ft 4b. Location of Well(S,j-te :ase Plane Coordippa�tes :_ , NAD 27 10. KB Elevation 15. Distance to Nearest Well y,..r.iX:_-.1.01461111- L% ' l3 above GL): 677 ft GL/675 ft KB Within rod: Surface: AKSP_ - AKSP X�-��. Zone 4 (Height 3,188 ft . 16.Deviated wells: q,! _i LKickoff depth: 17. Maximum Anticipated Pressures in psig(see 20 AAC 25.035) Maximum Hole Angle: 0 degrees Downhole: 1,638 psi Surface: 981 psi 18.Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity,c.f.or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) 8.5" 7.0" 26 L-80 PE 100' 0' 0' 100' 100' 25.4 c.f. 6.0" 5.5" 14.9 A-53 FJ 1 )' 0' 0' fi 1,500' 1,500' 94.1 c.f. 3.77" _ 2,000' /' .. 3,500' 3,500' ON / .../ , � 19. PRESENT WELL CONDITION SUMMARY(To be ceted for Redrill and Re-Entry�plgrations) Total Depth MD(ft): Total Depth TVD(ft): Plugs(measured): Effect. Depth MD(ft):icv Effect.Depth TVD(ft): Junk(measured): Casing Length Size\ Cement olurpe MD TVD Conductor/Structural .C/ .1/ Surfaced Intermediate ✓ Production , Liner Perforation Depth MD(ft): .J /111? erforation Depth TVD(ft): 20. Attachments: Filing Fee ❑ BOR..'Skitc !r ' Dri 'ng Program❑ Time v. Depth Plot❑✓ Shallow Hazard Analysis ❑ Property Plat ❑✓ Diverter Sketc J Seabed Report❑ Drilling Fluid Prograrr0 20 AAC 25.050 requirements ❑ 21. Verbal Approval: Commission Representative: \,,_ Date 22. I hereby certify that the foregoing is true and correct. Contact Corri Feige 907.868.8660 Printed Name Corti Feige Title General Manager-Alaska Signature /A, (�j Phone (907)868-8660 Date ,,„k �c�- _ Commission Use Only d Permit to Drill API Number: ,n Permit Approval See cover letter for other - Number: 2.12 i 12 50-2 [�"-"2T/(4'L Date: requirements. If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales: Q Conditions of approval : � ' �v� ___31- Samples req'd: Yes No Mud log req'd: Yes❑ No Other: IOoo �S`' H2S measures: Yes❑ No0 Directional svy req'd: Yes ❑No �# r� :l,�it‘t,( c-h,;,- 6«r c yea,Cucr%1 p _r_..?eyf�AC ZS', � D ✓.�{tr c Pro,u-c-9 re- Z) A'4 Z.) 03s (c,)(i)(.0 / 5 ,iy APPROVED BY THE COMMISSION DATE: ,COMMISSIONER Form 10-401 Revised 12/2005 7 743,(i 0RIG1NAL Submit in Duplicate i • 0 LInc MERCY Linc Energy Operations, Inc. Rei Cei v es) 3000 "C" Street, Suite #103 � - 312 12 Anchorage, Alaska 99503 AOGGC July 30, 2012 Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 RE: Application for Permit to Drill Well: KEEX 02 (Underground Coal Gasification Stratigraphic Test) TRS: SESE, T12N, R13W, Section 25, Seward Meridian Dear Chairman Foerster, Linc Energy Operations, Inc. hereby applies for a Permit to Drill an onshore Underground Coal Gasification stratigraphic test well approximately 8 miles northwest of the town of Old Tyonek and 7 miles north of Trading Bay on the west side of Cook Inlet. The well will be drilled on Alaska Mental Health Trust Land under the authority of a current Underground Coal Gasification (UCG) Exploration License (Kenai License MHT#9200462) held by Linc Energy Operations, Inc. and governed by the Coal Regulatory Group at the Department of Natural Resources. Linc plans to commence operations on approximately September 1st, 2012, employing the new build Buffalo Custom coring rig to drill and set conductor casing to . approximately 100'. A,diverter system will be installed and function tested before drilling and setting surface casing to approximately 1,500'. An alternative BOP system will be installed and tested to 1,000 psi after setting and testing the surface casing at 1,500' 1 , MD/TVD to 1,000 psi. This will be done per Alaska Oil and Gas Conservation , Commission ("AOGCC") well safety requirements. The well will be rotary drilled to �"', 3,500' MD/TVD. . `�%�-� 7 oxo � Linc requests to adopt by reference the variance requests that were subs ed on't"' � October 8, 2011 for our Underground Coal Gasification stratigraphic core drilling y,, (I" program: 1.) Wellbore Surveys under 20 AAC 25.050(2), and 2.) Records and Reports:10.-A" ` s - under 20 AAC 25.070(2). 0,4. rg_tv 410 • Please find attached information as required by 20 AAC 25.005 (a) and (c) for your review. Pertinent information attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill 2) A plat showing the surface location of the well 3) A plat showing the well location on the pad 4) Geologic Discussion, Anticipated Formation Tops 5) Shallow Gas Hazard Evaluation 6) General Well Prognosis, Waste Disposal, Logging Program 7) Proposed Operations Summary 8) Drilling Time versus Depth Plot 9) Proposed Wellbore Diagram 10) Diverter System 11) Pressure calculations and Mud Weight 12) Alternative BOP System 13) Description of Rig Layout & Pit System 14) Offset Well Mud Weight Data The following are Linc Energy designated contacts for reporting responsibilities to the Commission: 1) Completion Report Stan Porhola, Drilling and Completions Engineer (20 AAC 25.070) (907) 868-8660 2) Geologic Data and Logs Bob Schlosser, Coal Geologist (20 AAC 25.071) (907) 868-8660 The AOGCC is requested to treat as confidential all information in the Application for Permit to Drill (except the Public Information Copy) as information in these documents is drawn from research and data proprietary to Linc. If you have any questions or require further information, please contact either Corti Feige, General Manager — Alaska at (907.868.8660) or Nick Scales, Drilling Operations Manager at (907.868.8660). Sincerely, 60,t) W Corti A. Feige General Manager— Alaska A Cg i En en C ill W Q Y HT } C Cv 45 • 8 , 0 o OS i I ti .i. 3i g z tr r. • } i . . % 3 ` 3II w Es z co t co ITI 3 1111111 <., co ' z o 2. j,r All e eo ,- M z Jill IS 3 3 3 z z Z 8 N w s 3 3 3No . Z a $ z Z 6 N w. .r . , r ,ti r i ,:.i.„11, ,�� i - +ye '� t r� ) 1 IJ 1 Ry I� cr 5 ; �,� t° r >':� ' '! 3�r�ir li i �i�!, }1• r _ a� rad ,I ,,r�.- -. f�+Ow , .r � r . r'L tom,' 7•A l',,.. '• t t'. i .." .s ` ' , ,r•.•: • (S:::' �{�, n L.,., ,...,..-..._ '� el i �' • j t i '�i`�1 f jf �'ti� e r ` 'a� `J 't t -5-, J- tit ., I** � ` l'. ) z, ti ; t g• qy+• f . • .•"4 p .. •' ! {,' •ai .. , +�i 5 .W t • .a 5 _ �, .a l^i' 'fes tit a, e. Fy ": t ti.. }{ � t a f•• ?� r a 1 4� r , Ni • ptt a i�� a�r� ,.. i! n "\ � y—, -' IVr I ,� i 1. a. fir ,4•' ' .Li .r. ) • �U I. ii F � r' „--R -/Fr-44°'' .;�a� I A �, XI r, r I ,, i ti M,. ��+ p� ,ry,� 1' r ,' • ,r 1t A a. ` EE 4< X02 P' . " i6, I. ' t 't 4 , O r f 4 � -i7 �. - f ! ► 1671' from drib-sib , _ , to lease boundary �y y'{.' •+1r��'`S' '=� ; IL• : :t yd.• }k M: r ti{ rV "1 Jy `' ., r��r11$ _�{ i iy AVIS, r, ... _ -4,, - ' ;2115kil " i,i1,* lit i . .7: M yam; ,t+ ,:' . . E' S ,� yf • +..t i ¢ } 4AA••• il, Y;Itrf.....fi, ` / ; a+ j} y, s �_k �l !i ,. ',.y 'ems} •�' a'� �` t lr!.rt. J".,):v�'r4,5, 1Y-i .*:.*'.4'..,. _ f +rte 3 + r+ s } rr %, •. C*,..,:l. ,. r tff 4 l ,. 4. s •.V "' . f' `'qtr �� w t ti'r y `' '� 04. 3 ! _� r +-_-.n i Exploration Holes N UCG Exploration License Areas License Areas KEEXO2 L'DC 0 Alaska State Plane Zone 4,NAD27 1 0.5 0 1 Mile EIIERGY Sib Locatio ns.mad • 0 Exploration Drill Hole KEEX02 Linc Energy Operations Inc. Area Geologic Description KEEX02 is located approximately in the center of Sec.25,T12N, R13W, of the Seward Principal Meridian. The Tertiary sedimentary rocks,which can host the coal seams of potential Underground Coal Gasification (UCG) interest,are continental in origin derived from alluvial fans that deposited sediments into the forearc basin. These Tertiary sedimentary rocks belong to the Kenai Group which are subdivided into various formations. From top to bottom they include the Sterling Formation, Beluga Formation,Tyonek Formation, Hemlock Conglomerate and West Foreland Formation. The contact between unconsolidated Quaternary sediments and the underlying Sterling Formation is difficult to recognize as is the basal contact of the Sterling Formation. The Sterling Formation is uppermost Miocene to Pliocene in age consisting of weakly lithified massive sandstone,conglomeratic sandstone and interbedded siltstone and claystone. The unit includes interbedded lignitic coals typically less than 3 feet thick in its upper part, but may be as much as 10 feet thick in its lower part. However, a review of oil and gas well logs within the Cook Inlet basin suggests that individual coals in the order of 40 ' feet thick might occur in the Sterling Formation. The Miocene Beluga Formation consists of nonmarine, interbedded,weakly lithified sandstone, siltstone, carbonaceous shale, coal and minor volcanic ash. According to some, a distinctive feature of the Beluga Formation is the lack of massive bedded sandstones and thick coal beds that characterize the underlying Tyonek Formation. However, lignitic to subbituminous coal seams as much as 13 feet thick can occur in the upper part of the unit. The uppermost Oligocene to middle Miocene Tyonek Formation consists of massive bedded sandstones, siltstone and coal. The Tyonek Formation is characterized by the massive bedded sandstone beds and numerous lignitic to subbituminous coal beds, some of which are as much as 50 to 60 feet thick. Because of the thick nature of the coals the Tyonek Formation is the main exploration target. Contact with the overlying Beluga Formation is believed to be a disconformity where sandstone beds and coal beds become markedly thinner. Its basal contact is considered conformable with the underlying Hemlock Conglomerate. The West Foreland Formation occurs beneath the Hemlock Conglomerate. Volcanic rocks affecting Tertiary coal-bearing units span from Eocene through Holocene age. • Quaternary volcanic rocks exist in portions of the Cook Inlet Basin, many derived from historically active volcanoes. Similarly,Tertiary volcanic rocks occur within or in proximity of the Exploration Concessions and have been intercepted in some oil and gas wells. i • Drill hole Geologic Description It is anticipated that KEEX02 will encounter unconsolidated Quaternary sediments,the Beluga and Tyonek Formations. Coal seams of interest will be encountered in the Tyonek Formation. The Hemlock • Formation will not be penetrated. Anticipated Coal Targets Anticipated coals of interest are based on Stedatna Creek#1,API No. 50-283-10007-00-00 located 1 mile east of KEEX02 in Sec. 30,T12N, R12W and W.Tyonek#1,API No. 50-283-20340-00-00 located approximately 3 miles south of KEEX02 in Sec. 7,T11N, R12W. Data was also obtained from Nicolai Creek#3 API No. 50-283-20003-00-00 and Nicolai Creek No. 5,API 50-283-20036-00-00 both located in Sec.7 T11N, R12W approximately 5 miles south-southeast of KEEX02. Based on the offsets the following table describes the tops and thicknesses of the coals anticipated in Linc Energy Operations Inc. KEEX02. Linc Energy Operations, Inc.KEEX02 anticipated coal tops Anticipated Seam Depth(FT) Anticipated Seam Thickness(FT) 1,581 15 1,730 24 2,083 15 2,793 17 3,237 18 3,500 TD Shallow Gas Hazard Analysis Based on the mudlogs of Nicolai Creek#3, Nicolai Creek#5, and records from Long Lake#2,API No. 50- 283-20118-00-00 all drilling was conducted with mud weights not exceeding 9.3 ppg. Total gas based on 100 units equaling the equivalent of 2 percent methane had a high reading of approximately 100 units. • • Seismic Evaluation for Shallow Hazards Linc Energy KEEX02 Location: One 2D seismic line, SAE-KN-L201,was acquired over the proposed Linc Energy KEEX02 Underground Coal Gasification Stratigraphic Test Core location. A relative amplitude processed version of this seismic profile (image below)was inspected for amplitude anomalies possibly indicating the presence of shallow gas. The reflectivity in the shallow section at the proposed core hole location exhibits low signal-to-noise and greater discontinuity than the correlative section to the north. This discontinuous reflectivity could be indicative of shallow faulting, noisy data,poor imaging, or all of these factors. The pervasive high amplitude reflectivity in the shallow section is inconsistent with the expectation of isolated high amplitude events associated with discontinuous gas-charged sands. Area well data should be examined to determine if coals could be present in this shallow section approximately 200ms thick(-400ft thick using an interval velocity of 8000 ft/sec). Normalizing the amplitudes indicates that noise may be contributing to much of the elevated amplitude in the very shallow section. 1A' SAC is.,1101 Mk) rclarnp32 NorthLine 201 833 800 759 0 South 636 581 521 480 440 402 359 320 245 204 138 • 991 Sho 1580 15001480 1460 1400 1370 1340 1320 1300 1280 1260 1240 1200 1180 1140 1080 1040• 'i VOL __-.— relative amplitude section -•----_..-_-_- —.---..-----_. — -____- x..l °r ''a-;„ ,u r, F '444:-....,1.r _.._ 't;'r"Y, - >y tt�I. t. r s f. .''}.. �+t' 3 -- r. t:0�k�-i t''f- r, V F4, xe .f-. . Ft.,s 1 1.tt#-fl.a.._..----- ' •`" fir•`i .rpt ,} . y µ` s 1 a. } '�f '► t, t eFS �" ..? ado ,c' ». P40,,,-'- 3" A.' ` s °P. i x r 1 . e tti 4—V ea . , . r - .._----`42.—.-----...._:—___—__ . REDACTED M. Guhl 3/3/2016 • • Several deeper amplitude events are observed at the proposed KEEX02 location. The reflection events at- 650ms, —900ms, and—1200ms exhibit higher amplitude relative to the background. When normalized the event at 900ms(about-2400ft.tvdss using 8000 ft/s with Oft. at 300ms)continues to show higher relative amplitude while the other two .-- appear %appear less pronounced and/or more continuous. ✓ Without well calibration it is not possible based on this qualitative inspection to distinguish whether the amplitude event at—900ms is due to a gas effect or caused by interbedded coals as both can cause anomalous amplitude behavior. The signal-to-noise quality of the pre-stack supergathers does not offer a clear examination of amplitude with offset variation. Michael D. Helton Geophysicist Petrotechnical Resources of Alaska 6 January 2012 (=Inc �---- EDERGY KEEX 02 General Prognosis Well Name: KEEX 02 Surface Location: Section 25, T12N, R13W, SM Bottom hole Location: Same (vertical hole) Planned TD: 3,500' MD /TVD Well Summary An 8-1/2" conductor hole will be drilled to 100'. The 7.0" conductor will be set at 100' and cemented to surface. The cellar will be grouted with concrete to stabilize the conductor casing and a diverter installed. A 6.0" surface hole will be rotary drilled to 1,500'. The 5.5" surface casing will be set at 1,500' and cemented to surface. Rotary drilling operations will drill approximately 2,000' of 3.77" OD hole to 3,500' MD/TVD. Drilling Fluid Management A gel freshwater mud system provided by MISWACO will be used for the rotary and coring operations from surface to TD. At the end of coring operations the settling pit will be reclaimed in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21. Waste Management All waste including drill cuttings will be handled in accordance with the Alaska Surface Coal Mining Control and Reclamation Act AS 27.21 as governed by the Coal Regulatory Group of the Alaska Department of Natural Resources. Well Trajectory and Deviation Survey The KEEX 02 is planned to be a vertical well. Formation Tops and Casing Depths See attached geologic summary. No production casing is planned at this time. Logging Program 0' - 1,500' No open-hole logs lticKi k.w: • 1,500' - 3,500' GR/Resistivity/Neutron Density/Sonic Ok, - - 5k C4-51"1 °1"- lam' KEEX 02 • Linc Energy Operations erations Inc. • Proposed Operations Summary 1. MIRU Buffalo Custom coring rig. Mix gel freshwater mud system. 2. Drill 8.50" conductor hole to 100'. 3. Run &cement 7.0" conductor casing with 25.4 cu ft. 15.2 ppg Class G cement(100% excess)to surface. 4. Nipple up Diverter system and gas detection system and notify AOGCC. 5. With AOGCC witness function test Diverter system. 6. Drill 6.00" surface hole from 100' to 1,500' MD/TVD. 7. Run &cement 5.5" surface casing with 94.1 cu ft. 15.2 ppg Class G cement(100% excess)to surface. 8. NU and test Alternate BOP system to 250/1,000 psi. Notify AOGCC prior to test. 13,1 9. Drill 3.77" production hole from 1,500' to 3,500' MD/TVD (No core to be taken). 10. RU wireline, run open hole logs including GR/Resistivity/N_eutron,Density/Sonic Loa s 11. Plug and abandon per AOGCC requirements. Submit 10 4 val. 12. RDMO core rig. i • Depth (Feet) VI o LA o o 0 0 0 0 0 o o o 0 ' 0.7). ., I C i I i I c roo c �� =r VI d I I I I + I fl. CI fl. 1 C ! ! c N o 11li rt I" . .\ Irl C1) r 0.1N 0) vi co 3 o M N c . . o obi i to o n -1 i \ X CU 0 O VI r20 I ,. 1 Ic▪ v w Q. c c ort n Ts . N N = I i i C wo 0 r v v 'O I I 1 3rO+ rO+ = I 0O 'O v O VI O cro a) = D O cr i i i ywj i N pq Li. , ov 'V Q 1 I I v c 3 ov3 D r • r m v a 3 . N i • PROPOSED WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. 8.50" hole to 100' , 7" conductor casing Y"t tl,J"a.., .,. set @ 100' 0. �r" '' Cemented to surface with •' * '" 0 25.4ft3 of cement 4 (100%OH excess) • 4,r e •. +y 6.00" hole to 1,500' tr Yi xAj yt A • .! 5.5" surface casing set @ 1,500' Y Cemented to surface with `'' .'`.! 94.1ft3 of cement (100%OH excess) 3.77" hole to 3,500' (No core to be taken) Rev 5/24/12 UI1C KEEX 02 -� • • EIIERGY Diverter System \ / Bell Nipple 6 „Flow Nipple 1—> To Shakers 7-1/16" Flange 3,000 psi 7-1/16" 3,000 psi Torus Annular Preventer 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 3tff 6" Knife Valve 150 psi Diverter 6" Diverter Line Spool 75' Long 7-1/16" Flange 3,000 psi 7-1/16" Flange 3,000 psi 7" 26# Conductor KEEX 02 Linc Energy Operations, Inc. Pressure Calculations & Mud Weight Discussion Maximum Anticipated Surface Pressure: 3.77" Production Hole Section This hole section will be drilled with an alternate BOP system. MASP for the production hole section is determined as the surface pressure at breakdown of the surface casing shoe with a gas gradient to the surface. MASP Calculation Assumptions 1) Formation pore pressures across the openhole interval (1,500'-3,500')are anticipated to be 0.45-0.48 psi/ft based on offset data of the nearby Long Lake#2 (PTD 206-061) located 9,000' ESE of the proposed KEEX 02 location. 2) Fracture gradient at 1,500' is estimated to be 14.5 ppg. Fracture gradient data from the offset Long Lake#2 had a LOT of 14.3 ppg at 800'. MASP Calculation Pshoe = FG x 0.052 x D = 14.5x0.052x 1,500 = 1,131 psi MASP calculated with 5.5" casing set at 1,500', while drilling 3.77" hole to 3,500' MD. MASP = [(FG x 0.052)-0.10] x D A 14( 4.414- , • = 14.5 x 0.052)-0.10] x 1,500 = 981 psi -✓ OK-14 Pshoe = Pressure at casing shoe, psi MASP = Maximum Anticipated Surface Pressure, psi STJ PA-P FG = Fracture Gradient at the casing shoe, lb/gal 0.052 = Conversion from lb/gal to psi/ft .fl?/ ,- 0.10 = Gas gradient in psi/ft D =True vertical depth of casing shoe, ft RKB IG�Gio S� 3�v Alternative BOP System Discussion (33 ) /S0 With a MASP for the 3.77" production hole section calculated to be 981 psi, the 1,000 psi alternative BOP system to be used will be rated above the maximum anticipated surface pressure (MASP). Mud Weight Discussion Nearby offset Long Lake#2 (PTD 206-061), located 9,000' ESE of the KEEX 02 proposed location, observed no over-pressured formations and was drilled with 8.7-9.3 ppg MW over the KEEX 02 interval of interest (0-3,500'). 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D o °::::' 0 ,N •;; L.L. 470 H r # � o•. .: �-► `.`: v, i 'O • • • + N *-ir�� • - � :•:,-pJ,4 tat#a11111111 �`'�`'`:�'' '•`•'• •'•'• • •' ' ' '• ' • ' ..-..�.... #tttaa#a...fff -,t r111aa1aalaat+ trr11a111111at /aaaataaa1r11 u- :::: 111aa##aaaaal# rttt.tf1f1/r1� � iaaafttNttla# ' � ii�iai�i�i�iait 1.1.1.1.1.1.1.1.#�t�1�f�#•_ .iliaiaia� ��l�l�l�l�l�l�f�f�f�f*f�fff�l�f�l�a�a�l�l :ifitifil� �1#1#1aliai#iailiaititititititifiail#1f1 rt+t+f+1I �iiiiiiiiiiiiiiiiiaf1 -] kt+#+t+1+f #tt1i r ; ititilitiailf+iaiaiaiaiaiaiaitiaitititia IIIIJ ta 'b a1111rraaaaaaaatttta tf♦ V iail�iliflilali+ilitil, iss: W iaiaiailalitilirilal#1fliiiailiai+iaiaia iliii! i �rrri►rrr►l►l►a►i►r►a►a►a►a►�►1►1r�rlrtr�rtrtrt►lrrrrrrrlrarrrl►r►l►r►r►r►a►a►a►a►a►a►a►a►�►a►�►a►�►a►arm►art rtf#ttftttttf#1111aaaaaaattttaftttttta►#tttt.t.a1111aa11 dap+f+f+f+fO++00�DOD+�O+�+�+X0000+�+�+�+�+0�+0000+�+0�+�+0000+00�O+iO+i►�+�+Ott 4 • • E La. on � L1 I • C ^a O G> Ho o E O 5C 111111111111.11M11111W INN 0 0 3 • 0 c 0 C7 Mud ■ ■ ■ 11 a� E _ 5 •NN NM MN• ■ ■ - - O an _ o Tubestand Dumpster Weatherport Toolbox Fuel Containment • KEEX 02 Offset Mud Weight vs. Depth 0.0 -Long Lake Unit#1 -Long Lake#2 .-m"..NN KEEX02 Planned 500.0 KEEX 02 Mud system to be a8.7-9.3ppg Water-based mud system 1000.0 1500.0 1st Coal s 0. a) 173 2000.0 3 2500.0 3000.0 Total Depth 3500.0 ---- --- 4000.0 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 Mud Weight(ppg) i • Davies, Stephen F (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Monday, October 08, 2012 11:33 AM To: Schwartz, Guy L (DOA); Nick Scales Cc: Davies, Stephen F (DOA); Corri Feige Subject: RE: KEEX 2 (PTD 212-112) Guy, We've submitted a new PTD for KEEX 02 that has a proposed surface casing at 800'. An expedited review would be appreciated. Regards, Stan Porhola GI Drilling and Completions Engineer P +1 907 375 2615 1 M +1 907.280.8492 1 E stan.porhola@lincenergy.com LIRe 3000"C"Street,Suite#103 Anchorage AK 99503 ERERGY ited States Pn+1 907 868 8660 fsi"'; F+1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, October 04, 2012 1:35 PM To: Stan Porhola; Nick Scales Cc: Davies, Stephen F (DOA); Corri Feige Subject: RE: KEEX 2 (PTD 212-112) Stan, Thanks for the info... But.. in light of the shallow gas hazard seen on offset well Moquawkie#4 (PTD 207-084) why wouldn't you set your surface casing higher uphole especially if offset well Long Lake#2 had good LOT at that depth. Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 1 • . 444-3433 (cell) From: Stan Porhola jmailto:stan.i orhola©lincenergy.com] Sent: Thursday, October 04, 2012 12:37 PM To: Schwartz, Guy L (DOA); Nick Scales Cc: Davies, Stephen F (DOA); Corri Feige Subject: RE: KEEX 2 (PTD 212-112) Guy, Per your request, we are providing justification for a setting depth for the surface casing at 1,500' MD/TVD. Based on the offset Long Lake#2 well, located within 2 miles of the proposed KEEX 02, we expect to see formation pressures that will be controlled with a mud weight from 8.7 to 9.2 ppg.That well also found competent rock at 800' that had a leak-off pressure of 14.3 ppg EMW.Also, our first coal is anticipated to be below 1,500' MD/TVD.Therefore, we believe that a surface casing setting depth of 1,500' would be acceptable. Attached are additional information (8 attachments)that reflects the change to add a surface casing string at 1,500' M D/TVD. If you have any additional questions, let me know. Stan Porhola Stan Porhola151 Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 1 E stan.porhola©lincenergy.com 0L1DC 3000"C" Street,Suite#103 Anchorage AK 99503 OHM, United tes P+1 907x868 8660 F+1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Schwartz, Guy L (DOA) Jmailto:quy.schwartz@alaska.govl Sent: Thursday, October 04, 2012 9:24 AM To: Stan Porhola; Nick Scales Cc: Davies, Stephen F (DOA) Subject: KEEX 2 (PTD 212-112) Stan, After further study the Commission has determined that the revised PTD application will not be approved as written. Your proposal to drill the well to a TD of 2850'TVD while on diverter only is not acceptable to the Commission. The 2 • • area you are drilling is a known province for shallow gas hazards. The supplied "Shallow Gas Hazzard Assessment" is not detailed enough to address this issue to our satisfaction. The Commission will require surface casing in order for you to drill this well. Please provide justification for your proposed setting depth for the surface casing string. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) 3 • ! unc LincEnergy Core Rig #1 EIIERGY Gas Detection System GAS DETECTION SYSTEM FOR KEEX 02 The gas detection system is located on the side wall next to the driller's console (See Gas Detection System below). The gas detection on the LincEnergy Core Rig #1 includes 3 methane LEL detectors (the three black cords with the blue adapters). There is one methane LEL sensor located in the Subbase/Cellar Area, one sensor at the Rig Floor Area (immediately next to the driller's console, and one at the Shale Shaker Area. GAS DETECTION SYSTEM SUBBASE/CELLAR AREA L 1 i I,ritimiii #' "'"k fir"` _ Akirl } t $ A r n . S ::*"..,a7-,..4:' MI0. R ti ¢ .fit** . x . .<.,. :k RIG FLOOR AREA SHALE SHAKER AREA ;14 i -fil - „„---.40,- . - C' A itosio s- g b✓ „ ,,,,,, 7/4- - . , ier--- . �� Davies, Stephen F (DOA) From: Stan Porhola [otan porho|a@|incenergy.00m] Sent: Friday, September 28, 2012 8:30 AM To: Davies, Stephen F (DOA) Co: 8ohwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Attachments: KEEX 02 Gas Detection System.docx Steve, In regard to the Drilling Hazard Mitigation Plans: 1. Attached is a summary of our gas detection on the LincEnergy Core Rig#1. 2. In the event of a well control emergency, we will "diverter and desert" and will not attempt to perform a "kill" operation. Based on the offset well information (specifically Long Lake#2) and our Shallow Gas Hazard Assessment, our plan is to drill with a mud weight similar to the Long Lake#2 which will be 9.3 ppg at TD of our well at 2,850' MD/TVD and do not expect any shallow gas or geopressure to be encountered. Stan Stan Porhola �) Drilling and Completions Engineer ~^~~� P +1 907 375 2615 M +1 907.280.8492 E stan.porho|o©|incenergy.conn Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, g/sm»utr, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail nnc©nnconcrovzom and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, September 26 2012 7:07 PM To: Stan Porhola Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Stan, I'm reviewing the Permit to Drill Application for KEEX 02 that was received by the AOGCC yesterday. I have a few comments and questions. • When I convert Linc's surface locationcoordinates of1434' ESL, 1679. FEL, S. 25,T12N' R13W, SM to ASP Zone 4 NAD 27 coordinates using AOGCC's database and geoscience workstation programs I obtain the following coordinates: X = 235,26J', Y = l596502' When I plot AOGCC's converted coordinates on a base map using my geoscience workstation, AOGCC's plotted well location agrees with the 1434' ESL, 1679' FEL footages. Linc's PTD Application lists surface coordinates for the well asX= 234,872', Y= 2,596,3U1', adifference of390' inthe X' direction and 201' in the Y-direction. AOGCC's conversion obviously doesn't agree with the X and Y coordinates calculated by Linc. This same problem was noted by AOGCC staff as we entered location information into AOGCC's database from Linc's Well Completion Reports for TYEX 01 and TYEX 01X (the errors were much greater for these wells). Who provides Linc's surface footage-from-section-line (metes and bounds) coordinates? How are Linc's metes and bounds coordinates converted to NAD 27, ASP Zone 4 X,Y coordinates? How is the accuracy of the coordinate conversions certified? Drilling Hazard Mitigation Plans: I didn't see any mention of Linc's planned methane gas detection equipment or monitoring procedures. I also did not see any discussion of planned mitigation measures in the event that shallow gas or geopressure are encountered. Please provide this information. Will Linc have kill-weight drilling fluids onsite, or the components and equipment to rapidly supply kill-weight mud in the event of an emergency? I'll email any additional questions separately. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907793'1224 Fax: 907-276-7542 From: Stan Porhola [mailto:stan.porhola@lincenergy.coml Sent: Tuesday, September 25, 2013 9:54 AM To: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Steve and Guy, We have submitted the new PTD for KEEX 02. Please note that we are anticipating a spud late this weekend (weather dependent). If the permit is approved, please notify me and we will send someone to pick it up. Stan Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 ' M +1 987.280.8492 E stan.porho|a©|incenergy.conn 2 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergv•com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies©alaska.gov] Sent: Thursday, September 20, 2012 9:55 AM To: Stan Porhola Subject: RE: Change to KEEX 02 Well Plan Stan, Thank you. Steve Davies AOGCC From: Stan Porhola jmailto:stan.00rhola@lincenergy.com1 Sent: Wednesday, September 19, 2012 9:58 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Steve, We will be submitting a new application for the KEEX 02 well.This new application will include the required shallow drilling hazards analysis. Should have it to your offices today or tomorrow at the latest. Stan Stan Porhola �� Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 F stan.porholaC@lincenergy.com 3 • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail lint©lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it, From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, September 18, 2012 6:11 PM To: Stan Porhola Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Stan, I'm reviewing the application submitted for KEEX 02 on 8/25/2011, and I don't see any information regarding shallow drilling hazards as required by 20 AAC 25.061. Could you please ask your geoscience staff to submit information concerning potential overpressured zones and Linc's seismic analysis of shallow gas zones? Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: Stan Porhola [mailto:stan.porhola@lincenergy.comj Sent: Friday, September 14, 2012 5:04 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Bob Schlosser; Mike Hagen; Nick Scales; Corri Feige; Jerry Otto Subject: Change to KEEX 02 Well Plan Guy, Linc Energy would like to request to make a change to the proposed KEEX 02 Permit to Drill (PTD) well plan. Attached is our new proposed well schematic for KEEX 02. Our new proposal would move the 6.0" surface hole from 1,500' MD/TVD to 2,850' MD/TVD.The mud program would remain unchanged with a mud weight at TD of 9.3 ppg. After TD is reached instead of running casing, the open hole section will be plugged and abandoned.This will eliminate the drilling of the original 3.77" production hole section. The reason for this change is that the intent is to drill to a shallower horizon and drill a single hole section.The intent is to reduce the number of days on this well by drilling the majority of anticipated coals, skipping the deeper coal anticipated at 3,237'. Drilling a single hole section will also save several days of rig time. Let me know if you need any additional information. 4 • S Regards, Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 iq1 +1 907.280.8492 E stan.porhola(&lincenergy.com Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail lave and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 5 • Davies, Stephen F (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Thursday, September 27, 2012 1:08 PM To: Davies, Stephen F (DOA) Subject: RE: Change to KEEX 02 Well Plan Steve, Yes, the location has been adjusted to 1,429' FSL, 1,671' FEL Sec 25,T12N, R13W S.M. Stan Stan Porhola ry Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 F stan.porhola@lincenergy.com • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail IincC lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies©alaska.gov] Sent: Thursday, September 27, 2012 11:45 AM To: Stan Porhola Subject: RE: Change to KEEX 02 Well Plan Stan, In my database, 1,429' FSL, 1,671' FEL Sec 25,T12N, R13W S.M. is equivalent to X: 235,269.8, Y: 2,596,496.8 (NAD 27), a difference of less than 3' in comparison to Linc's coordinates. Could you please provide metes and bounds and X,Y coordinates for the TYEX 01 and TYEX 01X wells? (So that I can ensure that AOGCC's database is correct.) Has the surface location for KEEX 02 changed? The current Permit to Drill application lists it as 1,434' FSL, 1,679' FEL Sec 25,T12N, R13W S.M. Thanks, Steve Davies AOGCC • . Davies, Stephen F (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Thursday, September 27, 2012 1:06 PM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Yes, All the corrections and discussions in emails concerning the original KEEX 02 permit have been included in the latest submittal. If there is anything I have missed (outside the Drilling Hazard Mitigation Plans) let me know. Stan Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 G:: stan.porhola@lincenergy.com • Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc©Iincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies©alaska.gov] Sent: Thursday, September 27, 2012 12:28 PM To: Stan Porhola Cc: Schwartz, Guy L (DOA) Subject: FW: Change to KEEX 02 Well Plan Stan, I see a lot of changes, corrections and discussions in the emails concerning KEEX 02 that have been sent between you, Guy and me. Have all of these been incorporated into the Permit to Drill Application for KEEX 02 that was received by AOGCC on Sept 25`", or is a revised application needed? Thanks, Steve Davies AOGCC 1 From: Davies, Stephen F (DOA) Sent: Thursday, September 27, 2012 11:45 AM To: 'Stan Porhn|o' Subject: RE: Change to KEEX 02 Well Plan Stan, |nmydatabase, 1,429' FSL1,67I' FEL Sec 25, Tl2N' R13VVlM. isequivalent to X: 235,269.8, Y: 2,596,496.8 (NAD 27), a difference of less than 3' in comparison to Linc's coordinates. Could you please provide metes and bounds and X,Y coordinates for the TYEX 01 and TYEX O1X wells? (So that I can ensure that AOGCC's database is correct.) Has the surface location for KEEX 02 changed? The current Permit to Drill application lists itasl,434' FSL, 1,679' FEL Sec 25, TI2N, R13VVS.M. Thanks, Steve Davies AOGCC From: Stan Porhola [mai|tn:stan.porho|aqD|inconergy.com] Sent: Thursday, September 27, 2012 11:24 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA); Tricia Saulnier Littlejohn Subject: RE: Change to KEEX 02 Well Plan Steve, I've done some work and found out why our coordinate have been off, not just for KEEX 02, but also TYEX 01, and TYEX 0lX. Our process for picking locations starts with field personnel going out with a hand held GPS to choose the location, based on topography, proximity to water sources and other factors. This location is recorded in Lat/Long format in NAD 83. The field GPS coordinates in NAD 83 are communicated to our GIS specialist (Linc contract employee in Anchorage). Using ArcGIS software, the GIS specialist has been plotting the point and measuring the distances on the Public Land Survey System (FNL, FSL, FWL, FEL) from section lines. The Public Land Survey data for the section lines comes from the DNR as a data layer in ArcGIS. The accuracy of measuring using ArcGIS is usually within a few feet. The field GPS coordinates are also converted from NAD 83 coordinates to NAD 27 coordinates into the software.This produces the Lat/Long and X/Y State Plane coordinates. What has been happening is that the coordinates were being given based on the NADCON (Continental United States) transformation and not the Alaska transformation. This has been causing a shift of the Lat/Long and X/Y coordinates in the software. To correct this problem, we have made sure to have the Alaska transformation selected for any coordinates that we are converting from NAD 83 to NAD 27 in ArcGIS. Also to confirm the points are correct, we will utilize the CorpsCon software to convert field GPS coordinates in NAD 83 to NAD 27 as a check of the ArcGIS coordinates. Below are the corrected coordinates; 1,4Z9' FSL' 1'671' FEL Sec ZS, T12N, R13VVS.K4. Lat/Long: 61°05' 54.7S" N, l51^ 29' 45.93" (NAD 27) �� Please confirm that these coordinates match up in your geoscience program. I will address the Drilling Hazard Mitigation Plans in a separate email. Stan Stan POrnOlB Drilling and Completions Engineer I) +1 907 375 2615 M +1 907.280.8492 E stan.porho|o0a|incenergy.corn • gagg,,,400W.,:aggcgABORM10.01.0g,TWIggg74004g10.6gRaggg':g '—. Caqgg4gTVagagagg,P',.. 000gg.H. ,g T.:00ftgg: Tk:lagggagagg...'r'aggaig— ," Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not theintended recipient, you must not read, print, retain, copy, momuute' forward or take any vcuonm ,znvnoconu � u orioacoment(s). zrvo" hav: nocr/vcuorhovcuccnmrwamcum|sr'maninerm,' please notify us immediately by return e-mail or e-mail nnc©|mccnergv.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, September 26, 2012 7:07 PM To: Stan Porhola Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Stan, I'm reviewing the Permit to Drill Application for KEEX 02 that was received by the AOGCC yesterday. I have a few comments and questions. Well location: When I convert Linc's surface location coordinates of 1434' FSL, 1679' FEL, S. 25,T12N, R13W, SM to ASP Zone 4 NAD Z7coordinates using AOGCC'sdatabaseand �eosdencevvorkstationprograms | obtain the foUowin& coordinates: X = 235,262', Y= 2,596,50 2' vvlot| p|otA0GCC'sconverted coordinates on a base map using my geoscience workstation, AOGCC's plotted well location agrees with the 1434' FSL, 1679' FEL footages. Lines PTD Application lists su�acecoordinates for the wd| asX = 234,O72', Y= 2,5y6,3O1', adifference nf39O' inthe X- di/ectionand 201' in the Y-direction. AOGCC's conversion obviously doesn't agree with the X and V coordinates calculated by Linc. This same problem was noted by AOGCC staff as we entered location information into AOGCC's database from Linc's Well Completion Reports for TYEX 01 and TYEX 01X (the errors were much greater for these wells). Who provides Linc's surface footage-from-section-line (metes and bounds) coordinates? How are Linc's metes and bounds coordinates converted to NAD 27, ASP Zone 4 X,Ycoon1inates? How is the accuracy of the coordinate conversions certified? 3 �� Drilling Hazard Mitigation Plans: I didn't see any mention of Linc's planned methane gas detection equipment or monitoring procedures. I also did not see any discussion of planned mitigation measures in the event that shallow gas or geopressure are encountered. Please provide this information. Will Linc have kill-weight drilling fluids onsite, or the components and equipment to rapidly supply kill-weight mud in the event of an emergency? I'll email any additional questions separately. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793'1224 Fax: 907-276'7542 From: Stan Porhnks [maiUo:ston.porhn|aP|inoenenly.cnml Sent: Tuesday, September 25, 2012 9:54 AM To: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Steve and Guy, We have submitted the new PTD for KEEX 02. Please note that we are anticipating a spud late this weekend (weather dependent). If the permit is approved, please notify me and we will send someone to pick it up. Stan Stan Porhola Drilling and Completions Engineer � m� '�~1 P +1 907 375 2615 M +1 907.380.8492 E stan.porholalincenergy.com Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail |inc©xncenerqvznm and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company 4 41° therefore do not accept any liability or resp ibility of whatsoever nature in the context oft is message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies©alaska.gov] Sent: Thursday, September 20, 2012 9:55 AM To: Stan Porhola Subject: RE: Change to KEEX 02 Well Plan Stan, Thank you. Steve Davies AOGCC From: Stan Porhola jmailto:stan.porhola@lincenergy.coml Sent: Wednesday, September 19, 2012 9:58 AM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Steve, We will be submitting a new application for the KEEX 02 well.This new application will include the required shallow drilling hazards analysis. Should have it to your offices today or tomorrow at the latest. Stan Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 +1 907.280.8492 E stan.porhola(a�lincenergy.com .11 q" ._ f Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail IincCallincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachments) which arises as ability of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 5 • From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, September 18, 2012 6:11 PM To: Stan Porhola Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Stan, I'm reviewing the application submitted for KEEX 02 on 8/25/2011, and I don't see any information regarding shallow drilling hazards as required by 20 AAC 25.061. Could you please ask your geoscience staff to submit information concerning potential overpressured zones and Linc's seismic analysis of shallow gas zones? Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-7934224 Fax: 907-276-7542 From: Stan Porhola jmailto:stan.porhola©lincenerqy.comj Sent: Friday, September 14, 2012 5:04 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Bob Schlosser; Mike Hagen; Nick Scales; Corri Feige; Jerry Otto Subject: Change to KEEX 02 Well Plan Guy, Linc Energy would like to request to make a change to the proposed KEEX 02 Permit to Drill (PTD) well plan. Attached is our new proposed well schematic for KEEX 02. Our new proposal would move the 6.0" surface hole from 1,500' MD/TVD to 2,850' MD/TVD.The mud program would remain unchanged with a mud weight at TD of 9.3 ppg. After TD is reached instead of running casing, the open hole section will be plugged and abandoned.This will eliminate the drilling of the original 3.77" production hole section. The reason for this change is that the intent is to drill to a shallower horizon and drill a single hole section.The intent is to reduce the number of days on this well by drilling the majority of anticipated coals, skipping the deeper coal anticipated at 3,237'. Drilling a single hole section will also save several days of rig time. Let me know if you need any additional information. Regards, Stan Porhola Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 F stan.porhola@ilincenerciy.com 6 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@linceneroy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information In this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 7 / 0 1110 1 if Ells EiE 0 [-F Altar., SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS z;; - E SUITE 100 CONSERVATION COMMISSION ""M AN -WAGE,ALASKA 99501-3539 PHONE (907)279-1433 � FAX (907)276-7542 ed Ms. Corri Feige Alaska General M. . ger Linc Energy Opetions, Inc. ' 3000 C Street, •; ite 103 Anchorage, •;' 99503 \irS Re: Str,''igraphic Test, TYEX 016 D .iv-A L' `c Energy Operations, Inc. (I( rmit No: 211-137 .urface Location: 233' FSL, 1142' FWL, SEC. 25, T13N, R1 , SM Bottomhole Location: 233' FSL, 1142' FWL, SEC. 25, T13N, 1W, SM Dear 's. Feige: Enclosed is the approved application for permit to drill the above referenced stratigra hic test well. Conditions for approval: 1. Well operations shall be conducted in accordance with 20 AAC 25. VAP" 2. Pursuant to 20 AAC 25.033 (j), alternative drilling fluid system is approved. Minimum mud weight of 9.6 ppg as described in application. 3. Pursuant to 20 AAC 25.035 (h) (1), alternative BOPE is approved. 4. Pursuant to 20 AAC 25.035 (h) (2), the diverter line size and length changes are accepted.` 5. Verified GPS coordinates meets the intent of 20 AAC 25.070 (2). / 6. The location of this well meets the requirements of 20 AAC 25.055 since Mental Health Trust is the only land owner. 7. Pursuant to 20 AAC 25.066 (d) (3), at least one methane detector is required. 8. Pursuant to 20 AAC 25.527 (b), drilling equipment must be protected to ensure reliable operation under the range of weather conditions that may be encountered at the well site. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged Page 1 of 1 • • Schwartz, Guy L (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Friday, September 14, 2012 5:04 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Bob Schlosser; Mike Hagen; Nick Scales; Corri Feige; Jerry Otto Subject: Change to KEEX 02 Well Plan Attachments: WBD KEEX02 9-14-12.xlsx Guy, Linc Energy would like to request to make a change to the proposed KEEX 02 Permit to Drill (PTD) well plan. Attached is our new proposed well schematic for KEEX 02. Our new proposal would move the 6.0" surface hole from 1,500' MD/TVD to 2,850' MD/TVD.The mud program would remain unchanged with a mud weight at TD of 9.3 ppg. After TD is reached instead of running casing, the open hole section will be plugged and abandoned.This will eliminate the drilling of the original 3.77" production hole section. The reason for this change is that the intent is to drill to a shallower horizon and drill a single hole section.The intent is to reduce the number of days on this well by drilling the majority of anticipated coals, skipping the deeper coal anticipated at 3,237'. Drilling a single hole section will also save several days of rig time. Let me know if you need any additional information. Regards, Stan Porhola X Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 E stan.porhola@lincenergy.com 3000 "C" Street, Suite #103 Anchorage AK 99503 ERGiu tes P +1 907a868 8660 .vw''Iir iergycon` F +1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 9/14/2012 PROPOSED WELLBORE DIAGRAM KEEX 02 Section 25-12N-13W, SM API #: Linc Energy Operations, Inc. 8.50" hole to 100' 7" conductor casing set @ 100' Cemented to surface with 25.4ft3 of cement (l nn%OH e)(ressl 6.0 hole to 2,850' (No core to be taken) Rev 9/14/12 0 • , tt Y_<, I ..[-D gioi 00 ,,„„ 1 cf,k■ 1 f VI ■ Power and Dependability Pail II ,, �- „- ■ a The AR 250 HD is the King! IN f With Depth's to 8'000 Feet and �A�� I R Beyond the 250 is the choice • for deep production drilling. Shown here in action this drill } f I 1 a took H Rod to 5,000 Feet with- 1 ■ out breaking a sweat! I, . r . 'i ' rt'r / * \ .„_ Y , t,,,. i1 1 F t1 til i • "nlCAN REC `- ""'`� 4.' r • • AR 250 HD Hydraulic Deep Ts'=.1------.7 : '''r- Diamond Core Drill + Power Unit Main Line Hoist 1� • !sum Model 6SD Turbo Diesel • PULLMASTER M50 Plattctan ° _ Water cooled Winch 0 • 9.8 L ( 600 CI ) Power Rating • Ma\Operating Pressure of 2500PS1 - ' of 300 HP a 2200 RPM • 7,Q;..Hoisting Cable ' • Fitted with lifting eyes for easy • Max line pull of 50,000 lbs at max it'. flying pressure.(bare drum) • Counter Balance and Sprague Brake Rotation Unit • Hollow Spindle drive acceptsfor smooth safe operation Wire up +' to re line Hoist j ', P Size Cote Hanel °1 w+' • FUNK 4 Speed Transmission • AR W-80 Hydraulic Winch powered by REXROTH GVM/ • Max Operating Pressure of 2500PSI 107 cc Motor • Cable Capacity-8.000 ft of 1/4- Hydraulic Module Stitt, Control Panel Mast '1. • Self contained unit and very user • All Tubular construction ,,. friendly. • Dual Lift Cylinders --;4 i, • Electric over Hydraulic controls for • Angle Drilling to 45 deg off vertical "� longer life and ease of operation. (rPt)deg) • Quick Connect couplings provide • Large Composite Fiber Sheave fast&simple installation /removal wheels for smoother operation and for mob/do-mob or repair. extended cable and sheave life. • All Aluminum/Stainless Mel framework and housing provide a Feed Frame American Recon is also a light,strong.corrosion resistant supplier of: unit. • Dual " Coupled Feed Cylinders. • Fitted with lifting eyes for easy • Composite Feed Frame slides and • Supply Pumps flying- stops for smooth operation and wear • Mud and Transfer Pumps reduction. • Mud Tanks & Tubs • Custom Equipment Options Enclosures and Shacks •• Drill Shack • Wind Walls • On Deck Mud Tank Estimated Operating Capacities ,,,, R Rod'Barrel Site Hole Depth(meters) Hole Depth(feet) rp B Rod limit 1(('4 1 CAM O15trs S.uOo Feet H 152525 Meters 5,000 Feet States /P `920 Meters 3.000 Feet United States t)16-560-9793 Note:Depths indicated ate machine ca xibilities not 10d capabilities. Always refer to drill rod manufacturers depth ratings prior to drilling J Canada 604-851—5657 0 • 10.0. . ,y.) . DRILLING RIGS .., , ,.:.„; /, AMERICAN RECON ` I)iatnond Drilling Rigs P CONTACT US Buffalo Custom is the only Authorized Dealer for American Recon Drilling Rigs. United States American Recon specializes in Hydraulically Driven Core Drills for the Exploration Industry. 8216 Alba Court Available in 4 Base Models which cover a wide Citrus Heights, Ca 95610 range of depths. Time tested to be Tough, Reliable Ph: 916-560-9793 and User Friendly. Backed by knowledgeable Fax: 775-201-7081 people and quick friendly service. E-mail: marks' buffalocustom.com N .R, .,t� 2.101 Feet.+ Canada 108-30755 Simpson Road ,. Abbotsford, BC Canada N Rod to 3500 Feet + Ph: 604-851-5657 Fax: 604-851-5664 E-mail: mile a hullulocuslom.com r Buffalo Custom Mfg. Manufacturer and Supplier of Diamond Drilling Rigs,Tools & Equipment • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg, DATE: September 6 2012 P. I. Supervisor FROM: Chuck Scheve, SUBJECT: Rig Inspection Petroleum Inspector Linc Energy Thursday, September 6, 2012: I traveled to the Linc Energy LDRT #1 location to perform a rig inspection of Linc's new core rig. Several non-compliance items were noted. 1 Accumulator equipped with only one pump. (Recharge time appeared adequate upon function of annular and knife valve) 2 No nitrogen backup system. 3 No remote operating station . (Unit in close proximity to driller's station) 4 No drill string isolation valve (Kelly Valves) on drive head. 5 No floor valve on location. 6 No H2s detection system. (Combustible detection appeared adequate.) 7 No PVT system. (All tankage open top and visible form rig floor.) 8 No degasser. At the time of this inspection no choke or kill manifold was rigged up, it was indicated that these would be built of threaded valves and fittings. Page 1 of 3 i • • Schwartz, Guy L (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Thursday, September 06, 2012 9:06 AM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Regg, James B (DOA); Nick Scales; Jerry Otto; Mike Hagen; Bob Schlosser Subject: RE: Linc Energy Operations KEEX 02 (PTD 212-112) Attachments: LincEnergy Core Rig#1 BOP Test Sequence.pdf; Core Rig Choke Manifold Labeled.pdf; LincEnergy Diverter Line.pdf; Request for Variance- Diverter Line Size.pdf Guy, In regard to your questions on the KEEX 02 Permit to Drill: 1.)The correct casing size is 5.5" OD.This kind of casing size is referred to as "PW" in core drilling applications and has a 1/4" wall thickness. 2.)To test the surface casing shoe at+/- 1,500', we will plan to do a FIT test to 13.1 ppg (surface pressure of 300 psi with a 9.2 ppg mud in the hole).The estimated LOT is 14.5 ppg, based on the offset Long Lake#2 LOT of 14.3 ppg at 800'. 3.) Our BOP is using 4" Ball Valves because these valves are only used to test the annular preventer. We spent several months looking for these valves and could not find 4" Gate Valves for this application.A similar setup with an annular preventer and 2 ball valves were used at TYEX 01 (PTD 211-137)and TYEX 01X (PTD 211-150) under our core drilling program. 4.)See attached BOPE test sequence and labeled Choke Manifold (2 attachments LincEnergy Core Rig#1 BOP Test Sequence and Core Rig Choke Manifold Labeled). 5.)See attached 6" Diverter Line layout.The 6" knife valve is remotely operated and is opened when the annular diverter is closed. (1 attachment). We are requesting a diverter line variance for a 6" diverter size instead of the 16" diverter, per 20 AAC 25.035 (c)(1)(a) due to the smaller hole size of our surface hole, which will be 6.0". (1 attachment Request for Variance-Diverter Line Size). In you have any other questions,feel free to contact me. Stan Porhola Ili CI Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 E stan.porhola@lincenergy.com LIDC 3000 "C" Street, Suite #103 Anchorage AK 99503 EDUnited P +1 907x868 8660 WWWlinuenergy.cnrn F +1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) 9/7/2012 Page 2 of 3 • • • only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Monday, August 20, 2012 1:31 PM To: Stan Porhola Cc: Davies, Stephen F (DOA); Regg, James B (DOA) Subject: RE: Linc Energy Operations KEEX 02 (PTD 212-112) Stan, Here are my questions: 1) Is 5.5" casing correct size for the int casing set at 1500 ft? Or is that a typo? 2)A LOT or FIT should be done after drilling out of the intermediate casing at 1500ft. Please submit a target FIT or min LOT and a procedure to obtain the test 3)The BOP setup is not standard ... can you explain the use of the 4" ID 1000 psi ball valves in the wellhead besides using them for testing the annular. These ball valves appear to be the weak link in the system as your MASP is right at 1000 psi. Are there other alternative valves that would be better suited? (Gate valves ) 4) Please supply a detailed BOP testing procedure (including choke manifold) 5) Supply a schematic of the 6" diverter line layout on the drilling pad. Is the 6" knife valve remotely operated? A variance request is also required to run a 6" diverter line ( 16" is standard). See 20 AAC 25.035(C) (1)(a) Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: Stan Porhola [mailto:stan.porhola@lincenergy.coml Sent: Friday, August 17, 2012 11:13 AM To: Schwartz, Guy L (DOA) Subject: Linc Energy Operations KEEX 02 Permit to Drill Guy, Received your voicemail about questions for the KEEX 02 Permit to Drill. Send me any questions or comments you have and I'll address the permit submittal. Regards, Stan Porhola Drilling and Completions Engineer 9/7/2012 Page 3 of 3 • • P +1 907 375 2615 M +1 907.280.8492 E stan.porhola©lincenergy.com 3000 "C" Street, Suite #103 Anchorage AK 99503 EIIERGY United States P +1 907 868 8660 WWWIinrenergy.corn F +1 907 868 8881 Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 9/7/2012 • • 4 September 12 Commissioner Cathy Foerster Alaska Oil and Gas Conservation Commission 333 W 7th Avenue,Suite 100 Anchorage,Alaska 99501-3539 RE:Request for Variance, Underground Coal Gasification Stratigraphic Core Drilling Program 20 AAC 25.035(c)(1)(a)—Diverter Line Size Dear Commissioner Foerster: Linc Energy Operations, Inc. ("Linc")hereby requests a variance to 20 AAC 25.035(c)(1)(a)which would allow the acceptance of a diverter line size smaller than 16".The regulation allows a variance request in the case of hole sizes smaller than 16". For our core drilling,the surface hole size will be 6.0",therefore we are requesting to use a diverter line size of 6.0". Linc plans to drill up to three core holes in Cook Inlet near Beluga and two core holes in the Interior near Healy,AK. Standard core drilling methods will be used to acquire the core for UCG evaluation and testing and all holes will be plugged and abandoned in accordance with AOGCC regulations at the completion of coring and open hole log testing. If you require any additional information, I can be reached at(907)868-8660 or by email at corri.feige@lincenergy.com. Thank you very much for your consideration. Sincere! Corri A. Feige General Manager-Alaska IP • zinc LincEnergy Core Rig #1 Et1ERGY Diverter Layout PHOTOS ri,," ..„ `,.,„' Vitet. 411: Mae ''' '8114:.... ,,1._ v : < .r ,. 4116 ak -.0 +wr i i:' `tea Diverter Line Outlet ,fit 6!� Diverter�. ��vl_- . _ ,�; ever er L me '{ Aix. ► �+ y. : •-6 . ,, ri r, • / • • ■ •• �• ■ Emma --r- KM 5 �•.11' _• maw •u••••• - ; gi E ••irar •••• • ••••u•••• so 1• 1 I IMERIROVIEMEMEIMMIIMINIMMIJIM Pill rilill 11111gOt0. tA [ 1 • trtr'ila *I MI 11111110 g pit n , , UIt,1■ Iti !i mans s •i•iw maiti ■ir rimaira ' •i•■ .in• Ella• iiii••a•••m iYi•••a ma 'i•• Uimii■ ••••• i ilii■!• rearaiammim 1 ws •■ -•m■■�i•• ■ ■■■■■i•u■ AL RONI MI• ACI•••■ I 11■•••• ■!��lli•1�``► iii■i■iE■ Fw1f.Al•4•EMON 1••••• •• illl•ir i•/ii i■•t_o oursce [ ■ii. lamas _Ili riiI 1• MIO 1 _ •■•!." 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OuDc EDERGY LincEnergy Core Rig #1 BOPE Test Sequence Test#1 • Annular, Lower Master Valve, Outside Kill Line, Choke manifold #7, #8, #9. Test#2 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #3, #5,#6. Test#3 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #1, #2, #3, #4. Test#4 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #5,#6, #8, #10,#11. Test#5 • Annular, Lower Master Valve, Inside Kill Line, Choke manifold #A,#B, #3. Test#6 • Annular, Lower Master Valve, Inside Kill Line, Inside Choke Line. Test#7 • Lower Master Valve, Upper Master Valve, Outside Choke Line. • • LIOC LincEnergy Core Rig #1 EDERGY Diverter Layout LAYOUT FOR LDRT #1 (PTD 212-059) Side View of Diverter Rig Floor Flowline \ Diverter Ground Elevation Rig Subbase Edge of Pad,/: 6" Diverter Line Cellar 4 ► 83' Conductor Knife Valve Top View of Diverter Knife Valve 83' 10- Diverter 6" Diverter Line —� Trench Cellar Edge of Pad • Davies, Stephen F (DOA) From: Stan Porhola [stan.porhola@lincenergy.com] Sent: Thursday, September 06, 2012 8:38 AM To: Davies, Stephen F (DOA); Bartly Kleven Cc: Bob Schlosser; Mike Hagen; Nick Scales; Jerry Otto Subject: RE: KEEX 2 Permit to Drill Application: Questions and Comments Attachments: Request for Variance- Records and Reports.pdf; Request for Variance -Wellbore Surveys.pdf; Shallow_Gas_Hazards_Assessment_KEEX02.pdf; Request for Variance - Core Chip Sampling.pdf Steve, In regard to your questions on the KEEX02 Permit to Drill: 1.)The correct lease number is AMHT#9200462, instead of#9400462. This was a typo that should be corrected. 2.) The correct coordinates: Y: 2,595,961, X: 235,011 (NAD 27, ASP4).This point correlates to lat/long 61.094039/151.499619. 3.) The waiver of a survey plat and instead use of GPS coordinates was requested on October 8, 2011 to cover our entire Exploratory Core Drilling Program. This waiver was used for previous wells drilled under this program, TYEX 01 (PTD 211- 137), and TYEX O1X (PTD 211-150). (1 attachment Request for Variance - Records and Reports). 4.) The waiver of a directional survey was requested on October 8, 2011 to cover our entire Exploratory Core Drilling Program. This waiver was used for previous wells drilled under this program,TYEX 01 (PTD 211-137), and TYEX 01X (PTD 211-150). (1 attachment Request for Variance- Wellbore Surveys). 5.) The well logging run planned only to the surface casing shoe will be continued to surface to acquire a gamma ray log for the surface hole section. 6.) See attached updated Shallow Gas Hazards Assessment for the KEEX 02 location. (1 attachment). 7.)The waiver of mud logging and instead use of core logs and photos was requested on October 8, 2011 to cover our entire Exploratory Core Drilling Program. This waiver was used for previous wells drilled under this program, TYEX 01 (PTD 211-137), and TYEX 01X (PTD 211-150). (1 attachment Request for Variance - Core Chip Sampling). 8.) Gas detection on the LincEnergy Core Rig#1 includes sensors for both methane and hydrogen sulfide in 3 locations, 1-The Rig Subbase, 2-The Rig Floor, 3-The Shakers. In you have additional questions, let me know. Regards, Stan Porhola Drilling and Completions Engineer - ., P +1 907 375 2615 M +1 907.280.8492 E stan.porhola@lincenergy.com 1 Vet Disclaimer Notice: The message and attachment(s) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidentialinformation or information which is exempt from disclosure under the applicable laws. If you are not the intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or its attachment(s). If-you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e mail linc@lincenergy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error-free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachment(s) which arises as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in this message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, August 08, 2012 3:54 PM To: Bartly Kleven Cc: Stan Porhola; Bob Schlosser Subject: KEEX 2 Permit to Drill Application: Questions and Comments Bartly, I have a few questions and comments concerning the land administration and geologic aspects of Linc's Permit to Drill Application for the proposed KEEX 2 strat test well. Any engineering questions and concerns will be sent under separate cover by a member of the AOGCC's engineering staff. 1. The Property Designation box (Box 7) on the Permit to Drill Aplication form does not specify the number of the affected State of Alaska lease. The only lease number provided is MHT 9400462 (see box 8, Land Use Permit), which encompasses only Section 31,T1OS, R11E, FAIRBANKS Meridian, according to the DNR's Land Administration System (LAS) website. According to DNR's land status plat far Township 12N, Range 13W, Seward Meridian, Lease MHT 9300046 is the oil and gas lease that includes the location of KEEX 2 in Section 25. Looking up MHT 9300046 on DNR's LAS website indicates that this particular lease contains all of Section 25, but the lease is assigned to Aurora Gas, LLC., not Linc. Can you please clarify this for me? Who are the landowners, owners, and operators for Section 25,T12N, R13W, Seward Meridian? What is the proper lease number? 2. The X, Y Alaska State Plane coordinates presented in box 4b of the Permit to Drill Application form don't make sense. AOGCC's database converts the footage-from-section-line coordinates listed in box 4a to the following NAD 27, ASP Zone 4 coordinates: X= 235,873;Y= 2,545,413. AOGCC's conversion obviously doesn't agree with the X,Y coordiates calculated by Linc. Who provided Linc's surface footage-from-section-line (metes and bounds) coordinates? How were Linc's metes and bounds coordinates converted to NAD 27, ASP Zone 4 X,Y coordiates? 3. Regulation 20 AAC 25.070 does not contain a clause allowing the AOGCC to waive the requirements of 20 AAC 25.070(2), which requires a survey plat that is certified by a registered surveyor. 4. No justification is provided for Linc's requests for waiver from the requirements of 20 AAC 25.050(a)(2). Please apply for waiver following the requirements of 20 AAC 25.050(h). 2 S. Regulation 20 AAC 25.071(a) that, -- m viresataminimum, a8amma' y |o-g-mustbe /uninthesvrfaceho|e from the base of conductor at 100' measured depth (MD) to the surface casing point at 1500' MD. 6. The Seismic Evaluation for Shallow Hazards submitted in support of the Permit to Drill Application is inconclusive. KEEX 01 is the only well annotated on the very small-scale seismic line that was submitted. A shot point base map was not provided. • Please provide a clear, larger-scale plot of any lines that intersect the proposed KEEX 2 location along with a shot point base map. • Where does KEEX 2 lie with respect to sesimic line KN-L201 or other seismic lines that were recorded in the area? • Do the anticipated coal targets listed in the Area Geologic Description correspond to any of the deeper amplitude events discussed in the Seismic Evaluation for Shallow Hazards? (See paragraphs 2 and 3 of the Seismic Evaluation for Shallow Hazards text.) • Have there been any drilling events associated with any coals in the equivalent stratigraphic sections in Stedatna Creek 1, Long Lake Unit 1, Long Lake 1 or Long Lake 2 exploratory wells? • Are there any other indicators of shallow gas or shallow geopressure associated with any of these wells? 7. Mud logging operations are not mentioned in the application. AOGCC policy is to require a mud log and cuttings samples for every exploratory or stratigraphic test well. What are Linc's plans for mud logging and sampling? If none, please provide justification per 20 AAC 25.071(c). O. Gas-detection and recording equiment is not discussed in the application. Please review regulation 20 AAC 25.066 and provide supporting documentation for Linc's KEEX 2 Permit to Drill Application. Thanks for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907'793-1224 Fax: 907'276'7542 • i • U m m m� ' C 5 Y 3(0 _ Tv o = ems. m rn rn c , �,t2,,* .O v m c o o c b 0.u. la k o °{ c a Y a m c ' 3 J! a—c o m w N p N N ' C u c-Ts 2 c y c 0 m IA ,. 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Any engineering questions and concerns will be sent under separate cover by a member of the AOGCC's engineering staff. 1. The Property Designation box (Box 7)on the Permit to Drill Aplication form does not specify the number of the affected State of Alaska lease. The only lease number provided is MHT 9400462 (see box 8, Land Use Permit), which encompasses only Section 31,T10S, R11E, FAIRBANKS Meridian, according to the DNR's Land Administration System (LAS) website. According to DNR's land status plat for Township 12N, Range 13W, Seward Meridian, Lease MHT 9300046 is the oil and gas lease that includes the location of KEEX 2 in Section 25. Looking up MHT 9300046 on DNR's LAS website indicates that this particular lease contains all of Section 25, but the lease is assigned to Aurora Gas, LLC., not Linc. Can you please clarify this for me? Who are the landowners, owners, and operators for Section 25,T12N, R13W, Seward Meridian? What is the proper lease number? 2. The X, Y Alaska State Plane coordinates presented in box 4b of the Permit to Drill Application form don't make sense. AOGCC's database converts the footage-from-section-line coordinates listed in box 4a to the following NAD 27, ASP Zone 4 coordinates: X= 235,873; Y= 2,545,413. AOGCC's conversion obviously doesn't agree with the X,Y coordiates calculated by Linc. Who provided Linc's surface footage-from-section-line (metes and bounds) coordinates? How were Linc's metes and bounds coordinates converted to NAD 27, ASP Zone 4 X,Y coordiates? 3. Regulation 20 AAC 25.070 does not contain a clause allowing the AOGCC to waive the requirements of 20 AAC 25.070(2), which requires a survey plat that is certified by a registered surveyor. 4. No justification is provided for Linc's requests for waiver from the requirements of 20 AAC 25.050(a)(2). Please apply for waiver following the requirements of 20 AAC 25.050(h). 5. Regulation 20 AAC 25.071(a) requires that, at a minimum, a gamma-ray log must be run in the surface hole from the base of conductor at 100' measured depth (MD)to the surface casing point at 1500' MD. 6. The Seismic Evaluation for Shallow Hazards submitted in support of the Permit to Drill Application is inconclusive. KEEX 01 is the only well annotated on the very small-scale seismic line that was submitted. A shot point base map was not provided. • Please provide a clear, larger-scale plot of any lines that intersect the proposed KEEX 2 location along with a shot point base map. • Where does KEEX 2 lie with respect to sesimic line KN-L201 or other seismic lines that were recorded in the area? 1 • • Do the anticipated coal targets listed in the Area Geologic Description correspond to any of the deeper amplitude events discussed in the Seismic Evaluation for Shallow Hazards? (See paragraphs 2 and 3 of the Seismic Evaluation for Shallow Hazards text.) • Have there been any drilling events associated with any coals in the equivalent stratigraphic sections in Stedatna Creek 1, Long Lake Unit 1, Long Lake 1 or Long Lake 2 exploratory wells? • Are there any other indicators of shallow gas or shallow geopressure associated with any of these wells? 7. Mud logging operations are not mentioned in the application. AOGCC policy is to require a mud log and cuttings samples for every exploratory or stratigraphic test well. What are Linc's plans for mud logging and sampling? If none, please provide justification per 20 AAC 25.071(c). 8. Gas-detection and recording equiment is not discussed in the application. Please review regulation 20 AAC 25.066 and provide supporting documentation for Linc's KEEX 2 Permit to Drill Application. Thanks for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 2 I I Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Tuesday, September 18, 2012 6:11 PM To: 'Stan Porhola' Cc: Schwartz, Guy L (DOA) Subject: RE: Change to KEEX 02 Well Plan Stan, I'm reviewing the application submitted for KEEX 02 on 8/25/2011,and I don't see any information regarding shallow drilling hazards as required by 20 AAC 25.061. Could you please ask your geoscience staff to submit information concerning potential overpressured zones and Linc's seismic analysis of shallow gas zones? Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-7934224 Fax: 907-276-7542 From: Stan Porhola [mailto:stan.porhola@alincenerciy.com] Sent: Friday, September 14, 2012 5:04 PM To: Schwartz, Guy L (DOA) Cc: Davies, Stephen F (DOA); Bob Schlosser; Mike Hagen; Nick Scales; Cord Feige; Jerry Otto Subject: Change to KEEX 02 Well Plan Guy, Linc Energy would like to request to make a change to the proposed KEEX 02 Permit to Drill (PTD)well plan. Attached is our new proposed well schematic for KEEX 02. Our new proposal would move the 6.0" surface hole from 1,500' MD/TVD to 2,850' MD/TVD.The mud program would remain unchanged with a mud weight at TD of 9.3 ppg. After TD is reached instead of running casing, the open hole section will be plugged and abandoned.This will eliminate the drilling of the original 3.77" production hole section. The reason for this change is that the intent is to drill to a shallower horizon and drill a single hole section.The intent is to reduce the number of days on this well by drilling the majority of anticipated coals, skipping the deeper coal anticipated at 3,237'. Drilling a single hole section will also save several days of rig time. Let me know if you need any additional information. Regards, Stan Porhola KI Drilling and Completions Engineer P +1 907 375 2615 M +1 907.280.8492 E stan.porhola@ilincenergy.com —lit'', A,:'''''',,2,fc.'' ,., - ',r c;,,,, ,,-t%°%'--i,':,f).%:•:,','it.ic wos ,e.,,,,''a;,,,,RI'';',1?*W ,, xv w Disclaimer Notice: The message and attachments) contained in this e-mail are intended for the named recipient(s) only. It may contain privileged or confidential information or information which is exempt from disclosure under the applicable laws. If you are not the. intended recipient, you must not read, print, retain, copy, distribute, forward or take any action in reliance on it or ts attachment(s). If you have received or have been forwarded this e-mail in error, please notify us immediately by return e-mail or e-mail Zinc@ linceneroy.com and delete this message from the computer in its entirety. Internet communications cannot be guaranteed to be secure and error free as the information could be intercepted, corrupted, lost, arrive late or contain viruses. The sender and this Company therefore do not accept any liability or responsibility of whatsoever nature in the context of this message and its attachments) which arises.as a result of Internet transmission. Opinions, conclusions, representations, views and such other information in ths message that do not relate to the official business of this Company shall be understood as neither given nor endorsed by it. 2 • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. I • TRANSMITTAL LETTER CHECKLIST WELL NAME �C C L,K C?— PTD# 2- 1 2--- l Development Service Exploratory :� Stratigraphic Test Non-Conventional Well FIELD: POOL: Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 • • El CI U) N CD o a, Q co a o N co co o �, o' c o yr co oo 'o Jo v N o U N c : >. of o Q aCD a) 0 7 Wm. rn o a) . N' U c ei „ 6, @' co • CC -c U' °: -O, W' X Q Q c, N, p C E 0 ars Qy' aa•N : � ' .i > r _O a) , a3 .y 2 �� dao' . I ' V' a CC E a a ' .0 C C n' a OO' Q. c M' co o o a ' v' c' • m' w' a a y O' Oi' c •0 C . on 05, � 0, 0▪ : a) •3' o N, d 0 C a O ,_' > CL c — -0 , : yN c y' .0 co U U) u) yc -0 CO of Ui ca. Ul co j o. o; , ; x' �i �, a3 m' £ E o - �; m, a), E , co �, u) ° io N' C °' a)' M W, y: O. 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