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Home My WebLink AboutCO 737CONSERVATION ORDER 737 Docket Number: CO -17-014 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H -16-L1 Oil Development Well Branch Kenai Borough, Alaska 1. July 14, 2017 B1ueCrest's request for spacing 2. July 18, 2017 Notice of hearing, affidavit of publication, email distribution, mailings 3. July 19, 2017 Amended Notice of hearing, affidavit of publication, email distribution, mailings 4. ---------------- emails fel N 1Y x1]ZMeM1 3,'Il ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill and complete the Hansen H -16-L1 development oil well branch within the same governmental quarter section as a well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -17-014 Conservation Order 737 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H -16-L1 Oil Development Well Branch Kenai Borough, Alaska February 8, 2018 By letter dated July 14, 2017, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the spacing requirements of 20 AAC 25.055 to drill the Hansen H -16-L1 development oil well branch within the same governmental quarter sections as development oil wells Hansen H-14 and Hansen H-16 and development oil well branch Hansen IALI, which are, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for September 14, 2017. On July 18, 2017, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On July 19, 2017, the AOGCC published the notice in the ALASKA DISPATCH NEWS. 3. Pursuant to 20 AAC 25.055(d)(1), BlueCrest sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the proposed Hansen H -16-L1 development well branch, i.e., the Bureau of Ocean Energy Management and the State of Alaska. BlueCrest provided the AOGCC the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding BlueCrest's application. 5. The tentatively scheduled public hearing was vacated on August 7, 2017. 6. B1ueCrest's application and supplemental correspondence provided sufficient information upon which to make an informed decision. FINDINGS: 1. BlueCrest is the operator and sole working interest owner of the Cosmopolitan Unit, which is located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The proposed Hansen H -16-L1 will be a horizontal development oil well branch drilled from an onshore surface location of 2329 feet from the south line and 1524 feet from the east line of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.) to an offshore bottom -hole location of 1867 feet from the south line and 2946 feet from the east line of Section 29, Township 3 South, Range 15 West, S.M. CO 737 February 8, 2018 Page 2 of 3 3. The surface location for the proposed Hansen H -16-L1 lies on private property. The top - of -productive -interval and bottom -hole locations will lie within State of Alaska leases ADL 18790 and ADL 384403, respectively. 4. Hansen H -16-L1 will target Tertiary -aged Starichkof (lower Tyonek) and/or Hemlock reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -16-L1 will be located within the same governmental quarter section as development oil wells Hansen IA, Hansen H-14, and Hansen H-16 and development oil well branches Hansen IA -Ll, and Hansen H -14-L1. Hansen H -16-L1 will be located within 1,000 feet of development oil well Hansen IA and development oil well branch Hansen IA -L. 6. Hansen 1A, Hansen lA-Ll, Hansen H-14, Hansen 14-L1, and Hansen H-16 are, or may be capable of, producing from the Hansen Undefined Oil Pool. 7. The well path and bottom -hole location for Hansen H -16-L1 were chosen based on reservoir mapping and modeling results. Reservoir modeling demonstrates that 800 feet is an optimum well spacing between parallel, extended -reach producers and injectors to maximize oil recovery from the Cosmopolitan Field, and that wells and lateral well branches drilled across the structure are the most effective means of draining the Hansen Undefined Oil Pool. Hansen H -16-L1 will be drilled parallel to the maximum stress direction in the Cosmopolitan Field to optimize wellbore stability. 8. Optimal well spacing, use of wells and lateral well branches, and drilling in a direction to optimize wellbore stability will ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells or by wells and well branches drilled in accordance with the well spacing provisions of 20 AAC 25.055(a)(3). CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H -16-L1 development oil well branch. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H -16-L1 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants BlueCrest's July 14, 2017, application for an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the Hansen H -16-L1 development oil well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements. DONE at Anchorage, Alaska and dated February 8, 2018. Hollis S. French Ca by V. Forester r a ' earrount, Jr. Chair, Commissioner Commissioner Commissioner CO 737 February 8, 2018 Page 3 of 3 As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration most set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within I0 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days atter the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day Carlisle, Samantha J (DOA) From: Carlisle, Samantha J (DOA) Sent: Thursday, February 08, 2018 12:15 PM To: 'Ballantine, Tab A (LAW) (tab.ballantine@alaska.gov)'; 'Bender, Makana K (DOA) (makana.bender@alaska.gov)';'Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov)'; 'Bixby, Brian D (DOA)'; 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)'; Carlisle, Samantha J (DOA); 'Colombie, Jody J (DOA) Oody.colombie@alaska.gov)'; 'Cook, Guy D (DOA)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; Earl, Adam G (DOA); Erickson, Tamara K (DOA);'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)'; 'French, Hollis (DOA)';'Frystacky, Michal(michal.frystacky@alaska.gov)';'Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov)'; Herrera, Matthew F (DOA); 'Jones, Jeffery B (DOA) Oeffjones@alaska.gov)'; Kair, Michael N (DOA); Laubenstein, Lou (DOA); 'Link, Liz M (DOA)'; Loepp, Victoria T (DOA); Mcphee, Megan S (DOA); 'Mumm, Joseph (DOA sponsored) Qoseph.mumm@alaska.gov)'; 'Noble, Robert C (DOA) (bob.noble@alaska.gov)'; 'Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov)'; 'Pasqual, Maria (DOA) (maria.pasqual@alaska.gov)'; 'Regg, James B (DOA) Qim.regg@alaska.gov)'; Rixse, Melvin G (DOA); 'Roby, David S (DOA) (dave.roby@alaska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov)'; 'Seamount, Dan T (DOA) (dan.seamount@alaska.gov)'; 'Wallace, Chris D (DOA) (chris.wallace@alaska.gov)';'AK, GWO Projects Well Integrity'; 'AKDCWeIIIntegrityCoordinator';'Alan Bailey';'Alex Demarban';'Alicia Showalter'; 'Allen Huckabay'; 'Andrew VanderJack'; 'Ann Danielson'; 'Anna Raff'; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer'; 'Ben Boettger'; 'Bill Bredar'; 'Bob'; 'Brandon Viator'; 'Brian Havelock'; 'Bruce Webb'; 'Caleb Conrad'; 'Candi English'; 'Cody Gauer'; 'Cody Terrell'; 'Colleen Miller';'Connie Downing'; 'Crandall, Krissell';'D Lawrence';'Dale Hoffman'; 'Danielle Mercurio'; 'Darci Horner'; 'Dave Harbour'; 'David Boelens'; 'David Duffy'; 'David House';'David McCaleb';'ddonkel@cfl.rr.com'; Diemer, Kenneth J (DNR);'DNROG Units'; 'DonnaAmbruz';'Ed Jones'; 'Elizabeth Harball';'Elowe, Kristin'; 'Elwood Brehmer';'Evan Osborne'; 'Evans, John R (LDZX)'; 'Garrett Brown'; 'George Pollock'; 'Gordon Pospisil'; Greeley, Destin M (DOR);'Gretchen Stoddard';'gspfoff'; Hurst, Rona D (DNR); Hyun, James J (DNR); 'Jacki Rose'; 'Jason Brune'; 'Jdarlington Qarlington@gmail.com)'; 'Jeanne McPherren'; 'Jerry Hodgden'; 'Jill Simek'; 'Jim Shine'; 'Jim Watt'; 'Jim White'; 'Jim Young'; 'Joe Lastufka'; 'Joe Nicks'; 'John Burdick'; 'John Easton'; 'John Larsen'; 'Jon Goltz'; 'Josef Chmielowski'; 'Juanita Lovett'; 'Judy Stanek'; 'Kari Moriarty'; 'Kasper Kowalewski'; 'Kazeem Adegbola';'Keith Torrance'; 'Keith Wiles';'Kelly Sperback';'Kevin Frank'; Kruse, Rebecca D (DNR); 'Kyla Choquette'; 'Laura Silliphant (laura.gregersen@alaska.gov)'; 'Leslie Smith'; 'Lori Nelson'; 'Luke Keller'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley@anadarko.com)'; 'Mark Landt'; 'Mark Wedman'; 'Michael Bill'; 'Michael Calkins'; 'Michael Moora';'Michael Quick';'Michael Schoetz';'Mike Morgan';'MJ Loveland'; 'mkm7200'; 'Motteram, Luke A'; Mueller, Marta R (DN R); 'Nathaniel Herz'; 'nelson'; 'Nichole Saunders'; 'Nick Ostrovsky'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Craig';'Paul Decker (paul.decker@alaska.gov)';'Paul Mazzolini'; Pike, Kevin W (DNR); 'Randall Kanady'; 'Renan Yanish'; 'Richard Cool'; 'Robert Brelsford'; 'Robert Warthen';'Sara Leverette';'Scott Griffith';'Shahla Farzan';'Shannon Donnelly'; 'Sharon Yarawsky'; Skutca, Joseph E (DNR); Smith, Kyle S (DNR); 'Stephanie Klemmer';'Stephen Hennigan'; 'Sternicki, Oliver R'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steve Quinn'; 'Suzanne Gibson'; 'Tamera Sheffield'; 'Tanisha Gleason'; 'Ted Kramer'; 'Teresa Imm'; 'Tim Jones'; 'Tim Mayers'; 'Todd Durkee'; 'Tom Maloney'; 'trmjrl'; 'Tyler Senden'; Umekwe, Maduabuchi P (DNR);'Vinnie Catalano';'Well Integrity'; 'Well Integrity'; 'Weston Nash'; 'Whitney Pettus';'Aaron Gluzman';'Aaron Sorrell';'Ajibola Adeyeye'; 'Alan Dennis'; 'Andy Bond'; 'Bajsarowicz, Caroline J; 'Bruce Williams'; 'Casey Sullivan'; To: 'Corey Munk'; 'Davis Mccraine'; 'Don Shaw'; 'Eppie Hogan '; 'Eric Lidji'; 'Garrett Haag'; 'Graham Smith'; Heusser, Heather A (DNR); 'Holly Fair'; 'Jamie M. Long'; 'Jason Bergerson'; 'Jesse Chielowski'; 'Jim Magill'; 'Joe Longo'; 'John Martineck'; 'Josh Kindred'; 'Keith Lopef;'Laney Vazquez'; 'Lois Epstein'; Longan, Sara W (DNR);'Marc Kuck';'Marcia Hobson'; 'Marie Steele'; 'Matt Armstrong'; 'Melonnie Amundson'; 'Mike Franger'; 'Morgan, Kirk A (DNR)'; 'Pascal Umekwe'; 'Pat Galvin'; 'Pete Dickinson'; 'Peter Contreras'; 'Rachel Davis'; 'Richard Garrard'; 'Richmond, Diane M'; 'Robert Province'; 'Ryan Daniel'; 'Sandra Lemke'; 'Susan Pollard'; 'Talib Syed'; 'Tina Grovier (tmgrovier@stoel.com)'; 'William Van Dyke' Subject: Conservation Order 737 and 738 Attachments: co737.pdf, co738.pdf THE APPLICATION OF B1ueCrest Alaska Operating LLC to drill and complete the Hansen H -16-L1 development oil well branch within the same governmental quarter section as a well that is, or may be capable of, producing from the same pool. THE APPLICATION OF B1ueCrest Alaska Operating LLC to drill and complete the Hansen H-16-1,1-ST1 development oil well branch within the same governmental quarter section as a well that is, or may be capable of, producing from the same pool. Samantha Carlisle Executive Secretary III Alaska Oil and Gas Conservation Commission 333 West 711, Avenue Anchorage, AK 99501 (907) 793-1223 CONFIQr.NTft1 LfTY NOTfCF,: This e-mail message, including anv attachments, contains information from the Alaska Oil and Gas Conservation Conrnussion (AOGCC), Stale of Alaska and is for the sole use of die intended recipient(s). It may cmntain confidential mid/or privileged iufoanaliou. The unauthorized review, use or disclosure of such information may violate state or federal lair. If volt are an unintended recipient of this c -mail, please delete it, without first saving or forwarding it, ,and, so that the AOGCC is aware of the mistake in sending it to voti, contact Samantha Carlisle at (907) 793-1223 or Sair inthil.Cai'hsleW)alilska.COy. Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Darin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 IH Davies, Stephen F (DOA) From: Andrew Buchanan <abuchanan@bluecrestenergy.com> Sent: Tuesday, September 5, 2017 4:34 PM To: Davies, Stephen F (DOA) Cc: 'Tom McKay'; 'Larry Burgess' Subject: RE: Spacing Exception Applications for Hansen H-161-1 and H-161-1-ST1 Steve, Sorry for the late response. As you can imagine, things around here have been a little hectic. Reservoir modeling has shown that the optimum spacing to maximize oil recovery from the Cosmopolitan field is 800' between producers and injectors. Modeling has further shown that dual laterals across the structure are the most effective means of draining the reservoir which has vertical thickness of over 600' above the oil/water contact at the crest of the structure. From a wellbore stability standpoint, the optimum direction to drill the wells is parallel to maximum stress which, in the Cosmopolitan field, is an azimuth of 303'. The combination of optimal spacing and dual laterals for maximum recovery, along with optimal direction for wellbore stability, creates a situation where we will have more than a single wellbore within a''/< section. In lieu of pool rules that would allow this unique and field specific spacing, BlueCrest Energy is requesting a spacing exception. Please let me know if you have any further questions or further explanation is required. Regards, Andrew Buchanan Sr. Operations Geologist BlueCrest Energy Ph: 907-7S4-9563 Cell: 907-250-6545 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, August 30, 2017 10:28 AM To: Andrew Buchanan (abuchanan@bluecrestenergy.com) Subject: Spacing Exception Applications for Hansen H-161-1 and H -161 -1 -STI Andrew, I'm working on these spacing exceptions and one thing lacking in the applications is an explanation from BlueCrest as to why BlueCrest selected the currently planned bottom -hole locations for these wellbores rather than drill them to locations that conform to statewide spacing regulations. Could you please provide a brief explanation? Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.daviesPalaska.gov. 3 Amended Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-014 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H -16-L1 well. BlueCrest, by letter dated July 14, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen IAL1, Hansen H-16 and H-14. Hansen H -16L1 Surface Location: 2329' FSL, 1524' FEL, Section 2, T04S, R15W, Seward Meridian Target Location: 2574' FSL, 1185' FEL, Section 33, T03S, R15W, Seward Meridian Bottom -hole Location: 1867' FSL, 2946' FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for August 30, 2017, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 4, 2017. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after August 8, 2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7`h Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on August 21, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the August 30, 2017 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than August 20, 2017. Hollis S. French Chair, Commissioner Joseph Longo Drilling Manager BlueCrest Alaska Operating, LLC 3301 C St., Ste. 202 Anchorage, AK 99503 t'�2c18c� Amended Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-014 The application of B1ueCrest Energy (B1ueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H -16-L1 well. B1ueCrest, by letter dated July 14, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen IALI, Hansen H-16 and H-14. Hansen H -16L1 Surface Location: 2329' FSL, 1524' FEL, Section 2, T04S, RI 5W, Seward Meridian Target Location: 2574' FSL, 1185' FEL, Section 33, T03S, RI 5W, Seward Meridian Bottom -hole Location: 1867' FSL, 2946' FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for August 30, 2017, at 10:00 a.m. at 333 West 7 1 Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 4, 2017. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after August 8, 2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7'h Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on August 21, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the August 30, 2017 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than August 20, 2017. //signature on file// Hollis S. French Chair, Commissioner STATE OF ALAS" ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMNNT. ADVFRTIsrNG ORDER NUMBER AO-I8-004 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 7/17/2017 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 TYPE OF ADVERTISEMENT: - `.% LEGAL ;; DISPLAY CLASSIFIED ,' OTHER (Specify below) DESCRIPTION PRICE CO-17-014 Initials of who prepared AO: Alaska Non -Taxable 92-600185 :SUBMI7 N`YOlCE SHOWIN6ADVERTISIINO: ::::O...BUERNO.ERTIFIED AFFIDAVIT OF :: .........., C................... .. euaLIEATIDNmTH:aTTAGxm corvo>t A,R,NI sM6Ni:L0a ..:� �..�.�:�:�.�.......:�: �:� Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae 1 of 1 Total of All Pa es $ REF Type I Number Amount Dale Comments I PVN JADN89311 2 Ao AO-18-004 3 4 FIN AMOUNT Sy Ap r Unit PGM LGR Object FY DIST LIQ 02U47717 lWAV 3046 18 2 4 5 Purcherin Au Purchasing Authority's Signature Telephone Number 1. A. M nd ng en ame mus[ r on all invoices and documents relating to this purchase. 2, T s is gist ered for tax free transactions under Chapter 32, IRS code. Re4stration number 92-73-0006 K. Items are for the exclusive use of the state and not for resal Ih�i�ion li�i�:Jr(hlglrtal AO Copies Pettilrsher(faimi, lllvision $fiscal, Receiv5ng Form: 02-901 Revised: 7/18/2017 RECEIVE® 270227 JUL 2 4 2011 #1407569 $239.04 lCC AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on July 19, 2017 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn to before me this I 1 day of July— 20—L�— 2 sty Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSI EXPIRES 33 Dv/ Notice of Public Hearing ALASKA OIL AND GTAS ATE COF ONSELRAVATION COMMISSION Docket Number: CO -17-014 The application of BlueCrest Energy (BlueCrest) exception to the spacing reqquirements of 20 AAC for the drilling of the Hansen H-16-1-1 well. the Alaska Oil and i u for an exception ise the proposed v irter sections as wl H-161-1 Location: 2329' FSL, 1524' FEL, Section 2, T04S, R15W, 2574' FSL, 1185' FEL, Section 33, T03S, 1867' FSL, 2946' FEL, Section 29, T03S,. this for a hearing Is not timely, filed, the AOGCC an order without a hearing. To learn if the call (907) 793-1221 after August 8, 2017. Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 Bernie Karl Gordon Severson Penny Vadla M Recycling Inc. 3201 Westmar Cir. 399 W. Riverview Ave. P.O. Box 58055 Fairbanks, AK 99711-0055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639-0309 Fairbanks, AK 99706-0868 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, July 18, 2017 11:31 AM To: aogcc.inspectors@alaska.gov, Bender, Makana K (DOA) (makana.bender@alaska.gov); Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA) oody.colombie@alaska.gov); Davies, Stephen F (DOA) (steve.davies@alaska.gov); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov); French, Hollis (DOA); Frystacky, Michal (michal.frystacky@alaska.gov); Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov); Kair, Michael N (DOA); Link, Liz M (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored) (oseph.mumm@alaska.gov); Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov); Pasqual, Maria (DOA) (maria.pasqual@alaska.gov); Quick, Michael (DOA sponsored); Regg, James B (DOA) oim.regg@alaska.gov); Roby, David S (DOA) (dave.roby@alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov); Seamount, Dan T (DOA) (dan.seamount@alaska.gov); Singh, Angela K (DOA); Wallace, Chris D (DOA) (chris.wallace@alaska.gov); AK, GWO Projects Well Integrity; AKDCWellIntegrityCoordinator, Alan Bailey; Alex Demarban; Alexander Bridge; Alicia Showalter; Allen Huckabay; Andrew Vandeback; Ann Danielson; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Ben Boettger, Bill Bredar; Bob; Brandon Viator; Brian Havelock; Bruce Webb; Caleb Conrad; Candi English; Cocklan-Vendl, Mary E; Colleen Miller, Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Darci Horner; Dave Harbour; David Boelens; David Duffy, David House; David McCaleb; David McCraine; ddonkel@cfl.rr.com; DNROG Units; Donna Ambruz; Ed Jones; Elizabeth Harball; Elowe, Kristin; Elwood Brehmer; Evan Osborne; Evans, John R (LDZX); Garrett Brown; George Pollock; Gordon Pospisil; Greeley, Destin M (DOR); Gretchen Stoddard; gspfoff; Hunter Cox; Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jason Brune; Jdarlington Qarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jill Simek, Jim Watt; Jim White; Joe Lastufka; Joe Nicks; John Burdick, John Easton; John Larsen; John Stuart; Jon Goltz; Josef Chmielowski; Juanita Lovett; Judy Stanek; Kari Moriarty; Kasper Kowalewski; Kazeem Adegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Kevin Frank; Kruse, Rebecca D (DNR); Kyla Choquette; Laura Silliphant (laura.gregersen@alaska.gov); Leslie Smith; Lori Nelson; Louisiana Cutler, Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Mealear Tauch; Michael Bill; Michael Calkins; Michael Moora; Mike Morgan; MJ Loveland; mkm7200; Motteram, Luke A; Mueller, Marta R (DNR); nelson; Nichole Saunders; Nick Ostrovsky, Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Paul Craig; Paul Decker (paul.decker@alaska.gov); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Renan Yanish; Richard Cool; Robert Brelsford; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly; Sharon Yarawsky; Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Stephanie Klemmer; Stephen Hennigan; Sternicki, Oliver R; Steve Moothart (steve.moothart@alaska.gov); Steve Quinn; Suzanne Gibson; Tamera Sheffield; Ted Kramer; Teresa Imm; Tim Jones; Tim Mayers; Todd Durkee; Tom Maloney; trmjrl; Tyler Senden; Umekwe, Maduabuchi P (DNR); Vinnie Catalano; Well Integrity; Well Integrity; Weston Nash; Whitney Pettus; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andy Bond; Bajsarowicz, Caroline J; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Corey Munk; Don Shaw; Eppie Hogan; Eric Lidji; Garrett Haag; Graham Smith; Heusser, Heather A (DNR); Holly Fair; Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; Jim Shine; Joe Longo; John Martineck; Josh Kindred; Keith Lopez; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Marie Steele; Matt Armstrong; Melonnie Amundson; Mike Franger; Morgan, Kirk A (DNR); Pascal Umekwe; Pat Galvin; Pete Dickinson; Peter Contreras; Rachel Davis; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Susan Pollard; Talib Syed; Tina Grovier (tmgrovier@stoel.com); William Van Dyke Subject: Amended Public Notices BlueCrest Energy Attachments: CO-17-015.pdf, CO-17-014.pdf PLEASE note that the hearing date has changed to August 30, 2017 at 10:00 a.m. Joty.1. CoCombie A0 7'CC Sgecia(Assistant .Kaska Oifand_Cas Conservation Commission 333 West 7" avenue Anchorage, Afaska 9.9501 Office: (907) 793-1221 fax: (907) 276-7542 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 if to you, contact Jody Colombie at 907.793.1221 or iodv.colombie@aloska.aov. - i Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-014 The application of B1ueCrest Energy (B1ueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H -16-L 1 well. B1ueCrest, by letter dated July 14, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen TALI, Hansen H-16 and H-14. Hansen H -16L1 Surface Location: 2329' FSL, 1524' FEL, Section 2, T04S, R15W, Seward Meridian Target Location: 2574' FSL, 1185' FEL, Section 33, T03S, R15W, Seward Meridian Bottom -hole Location: 1867' FSL, 2946' FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for September 14, 2017, at 10:00 a.m. at 333 West 7`" Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 4, 2017. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after August 8, 2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7m Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on August 22, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the September 14, 2017 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than September 12, 2017. Hollis S. French Chair, Commissioner Joseph Longo Drilling Manager BlueCrest Alaska Operating, LLC 3301 C St., Ste. 202 Anchorage, AK 99503 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-014 The application of B1ueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H -16 -LI well. B1ueCrest, by letter dated July 14, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen TALI, Hansen H-16 and H-14. Hansen H -16L1 Surface Location: 2329' FSL, 1524' FEL, Section 2, T04S, R15W, Seward Meridian Target Location: 2574' FSL, 1185' FEL, Section 33, T03S, R15W, Seward Meridian Bottom -hole Location: 1867' FSL, 2946' FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for September 14, 2017, at 10:00 a.m. at 333 West 7`h Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 4, 2017. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after August 8, 2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7m Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on August 22, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the September 14, 2017 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than September 12, 2017. //signature on file// Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED A FFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER 11 AO -18-002 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 7/17/2017 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 TYPE OF ADVERTISEMENT: V LEGAL DISPLAY CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO -17-014 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO.,, AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT To: Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae I of I Total Of All Paves S REF Type Number Amount Date Comments I PVN AUN89311 AO AO -18-002 3 4 FIN AMOUNT SY Ap r Unit PGM LGR Object FY DIST LIQ 1 18 021147717 3046 IS z 3 5 Pmelm i u Vti= T'le: Purchasing Authority's Signature Telephone Number 1. A. .0 antlmceivinga name must appear on all invoices and documents relating to this purchase. 2. T st to is registered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the state and not for resat DIS IBU'1'ION: Division Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving Form: 02-901 Revised: 7/17/2017 270227 0001407846 $234.08 STATE OF ALASKA RECEIVED AFFIDAVIT OF PUBLICATION THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on July 18, 2017 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me "18th ay of July, 2017 J(]dL Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES �l' J)) 20l9 JUL 2 1 2017 A GCC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Docket Number: CO -17-014 The application of BlueCrest Energy (BlueCrest) I exception to the spacing reqquirements of 20 AAC for the drilling of the Hansen H-16-1.1 well. est, by letter dated Jbly 14, 2017, requests the Alaska Oil a vation Commission 1A000C) issue an order for an excep mw reouirement of 20 AAC 25.055 because the proposi H-161.1 2329' FSL, 1524' FEL, Section 2, T04S, R15W, 2574' FSL, 1185' FEL, Section 33, T03S, 1867' FSL, 2946' FEL, Section 29, T03S, no for a hearing is not timely filed, i an order without a hearing. To call (907) 793-1221 after August no Notary Public BRITNEYL. THOMPSON State of Alaska Lw3 mission Expires Feb 23, 2019 Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711-0055 Anchorage, AK 995084336 Soldotna, AK 99669-7714 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639-0309 Fairbanks, AK 99706-0868 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, July 17, 2017 2:32 PM To: aogcc.inspectors@alaska.gov, Bender, Makana K (DOA) (makana.bender@alaska.gov); Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA) (ody.colombie@alaska.gov); Davies, Stephen F (DOA) (steve.davies@alaska.gov); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov); French, Hollis (DOA); Frystacky, Michal (michal.frystacky@alaska.gov); Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov); Kair, Michael N (DOA); Link, Liz M (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored) ooseph.mumm@alaska.gov); Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov); Pasqual, Maria (DOA) (maria.pasqual@alaska.gov); Quick, Michael (DOA sponsored); Regg, James B (DOA) oim.regg@alaska.gov); Roby, David S (DOA) (dave.roby@alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov); Seamount, Dan T (DOA) (dan.seamount@alaska.gov); Singh, Angela K (DOA); Wallace, Chris D (DOA) (chris.wallace@alaska.gov); AK, GWO Projects Well Integrity; AKDCWellIntegrityCoordinator, Alan Bailey; Alex Demarban; Alexander Bridge; Alicia Showalter, Allen Huckabay; Andrew Vandedack, Ann Danielson; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer, Ben Boettger, Bill Bredar; Bob; Brandon Viator; Brian Havelock, Bruce Webb; Caleb Conrad; Candi English; Cocklan-Vendl, Mary E; Colleen Miller, Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Darci Horner, Dave Harbour; David Boelens; David Duffy; David House; David McCaleb; David McCraine, ddonkel@cfl.rr.com; DNROG Units; Donna Ambruz; Ed Jones; Elizabeth Harball; Elowe, Kristin; Elwood Brehmer; Evan Osborne; Evans, John R (LDZX); Garrett Brown; George Pollock; Gordon Pospisil; Greeley, Destin M (DOR); Gretchen Stoddard; gspfoff; Hunter Cox; Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jason Brune; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jill Simek; Jim Watt; Jim White; Joe Lastufka; Joe Nicks; John Burdick, John Easton; John Larsen; John Stuart; Jon Goltz; Josef Chmielowski; Juanita Lovett; Judy Stanek; Kari Moriarty; Kasper Kowalewski; Kazeem Adegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Kevin Frank, Kruse, Rebecca D (DNR); Kyla Choquette; Laura Silliphant (laura.gregersen@alaska.gov); Leslie Smith; Lori Nelson; Louisiana Cutler, Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Mealear Tauch; Michael Bill; Michael Calkins, Michael Moora; Mike Morgan; MJ Loveland; mkm7200; Motteram, Luke A, Mueller, Marta R (DNR); Munisteri, Islin W M (DNR); nelson; Nichole Saunders; Nick Ostrovsky, Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Paul Craig; Paul Decker (paul.decker@alaska.gov); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Renan Yanish; Richard Cool; Robert Brelsford; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly, Sharon Yarawsky, Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Stephanie Klemmer; Stephen Hennigan; Sternicki, Oliver R; Steve Moothart (steve.moothart@alaska.gov); Steve Quinn; Suzanne Gibson; Tamera Sheffield; Ted Kramer; Teresa Imm; Tim Jones; Tim Mayers; Todd Durkee; Tom Maloney; trmjrl; Tyler Senden; Umekwe, Maduabuchi P (DNR); Vinnie Catalano; Well Integrity; Well Integrity, Weston Nash; Whitney Pettus; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andy Bond; Bajsarowicz, Caroline J; Bruce Williams; Bruno, Jeff 1 (DNR); Casey Sullivan; Corey Munk; Don Shaw; Eppie Hogan; Eric Lidji; Garrett Haag; Graham Smith; Hak Dickenson; Heusser, Heather A (DNR); Holly Fair; Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; Jim Shine; Joe Longo; John Martineck; Josh Kindred; Keith Lopez; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Marie Steele; Matt Armstrong; Melonnie Amundson; Mike Franger; Morgan, Kirk A (DNR); Pascal Umekwe; Pat Galvin; Pete Dickinson; Peter Contreras; Rachel Davis; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Susan Pollard; Talib Syed; Tina Grovier (tmgrovier@stoel.com); Tostevin, Breck C (LAW); William Van Dyke Subject: CO -17-014 and CO -015 Public Notice Bluecrest Energy Attachments: CO 17-014 Public Hearing Notice.pcif, CO 17-015 Public Hearing Notice.pdf Please see attached. Jody J. CoCombie ✓'IOGCC SpeciaCAssistant ACaska Oi(andGas Conservation Commission 333 }'Vest T" Avenue .anchorage, Alaska 99501 Office: (907) 793-1221 Fax: (907) 276-7542 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 thise-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 Jody Colombie at 907.793.1221 or iody.colombie@alaska.gov. I tflueNest EnergyRECEIVED Cosmopolitan Project L31ueCrest Energy - H16 -L7 Spacing Exception_AOGCC J U L 14 2017 3301 C Street, Suite 202, Anchorage, AK 99503 Joseph Longo �(�, ^�� Phone: (907) 754-9561 � Email: 1Longo@bluecrestenergy.com July 14, 2017 Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception for H16 -Ll Onshore Horizontal Producer Dear Commissioners, BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H1641. H36 -Ll will lie within the same governmental quarter sections as, Hansen 3AL1, H16 & H14 development oil wells that are open to the Cosmopolitan Undefined Oil Pool and are, or expecting to be, actively producing oil. Accordingly, an exception to statewide spacing requirements is requested. BlueCrest Energy is the only effected working interest owner and operator within the leasehold contacting the Cosmopolitan Undefined Oil Pool. The Bureau of Ocean Energy Management (BOEM) and Alaska Department of Natural Resources Division of Oil and Gas (ANDR DOG) have been notified of BlueCrest Energy's intent to submit this application for exception. The necessary documentation confirming notice is included in the attached. Please find attached for the review of the Commission the information required by 20 ACC 25.055 for this well bore. If you have any questions or require further information, please do not hesitate to contact Joseph Longo at 907-754-9561. Since ely, 1t Lo go rilling M nager BlueCrest Energy - H16 -L1 Spacing Exception_AOGCC lue[.7est Energy Application for Spacing Exception Horizontal Producer H16 -LI Table of Contents Cosmopolitan Project H16-11 Application for Spacing Exception 20 AAC 25.055. Drilling units and well spacing.......................................................... 2 1. Requirements of 20 AAC 25.055(a)........................................................................ 2 2. Requirements of 20 AAC 25.055 (b)....................................................................... 2 3. Requirements of 20 AAC 25.055(c)........................................................................ 2 4. Requirements of 20 AAC 25.055 (d)....................................................................... 3 5. Attachments.............................................................................................................3 Attachment 1 Spacing Exception Platt......................................................................................................... 3 Attachment2 Affidavit.............................................................................................................................. 3 Attachment 3 Notification Information....................................................................................................... 3 1lPage H16 -Ll Application /or Spacing Exception DlueNst Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H16 -L1 Application for Spacing Lxception The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 15.510. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the some and the landowner is the some on both sides of the line; Not Applicable — Well is not within 500' of the federal lease line (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the some on both sides of the line; Not Applicable — Wellbore is drilling for oil. (3) if oil has been discovered, the drilling unit for the pool is a governmental quartersection; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the some pool, - Please see Attachment 1: Spacing Exception Platt (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. Not Applicable —Target is the Cosmopolitan Undefined Oil Pool 2. Requirements of 20 AAC 25.055 (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100. BlueCrest Energy is the only operator and 100% working interest owner within the Cosmopolitan Unit. 3. Requirements of 20 AAC 25.055 (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. The leases currently being exploited by BlueCrest Energy all fall within the currently unitized Cosmopolitan Unit. Pool rules are not currently identified. 2lPage H16 -L1 Application for Spacing Exception !fl ueNest Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H16 -L1 Application for Spacing Exception The commission will review on application for on exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; BlueCrest Energy LLC Alaska Division of Natural Resources (ADNR) Bureau of Ocean Energy Management (BOEM) Please see Attachment 3: Notification Information (2) a plat drawn to a scale of one inch equaling 1,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plot correctly portrays pertinent and required data. Please see Attachment 2: Affidavit S. Attachments Attachment I Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 31Page H16 -I 1 Application for Spacing Exception Attachment i Exception Cosmopolitan Project H16 -L1 Spacing Lxception Attachments H16 -L 1 Spacing Exception Attachments 1§ H16 L1 Proposed Lateral H14 (P1 ADL38440 / Cm.Taa. W.SM SEC 28, T35, R15W. SM 1000' Radius Around H16 Lt Cosmopblitan St 1 Hansen 1 Hansen 1A 5W. SM ' SEC 32. T3S. R15W. SM Surface Coordinates: Northing: 2,144,856.07 Easting: 168,861.86 GSC: 2329' FSL, 1524' FEL, Sec. 2, T4S, R15W SM Top of Productive Horizon: H26 -L3 Northing: 2,150,583.53 Easting: 158,774.40 GSC: 2574' FSL, 1185' FEL, Sec. 33, T3S, R15W SM Depth: 14,366' MD/ 7,069' TVD Total Depth: H16 -LS Northing: 2,155,354.00 Easting: 151,859.00 GSC: 1867' FSL, 2946' FEL, Sec. 29, T3S, R15W SM Depth: 22,827' MD/ 7,003' TVD Cosmopolitan Unit Development Dare 11/072017 Company BlueCrest Energy 3t X, ICP SEC4.T4S,R15W,SM N. T3S. R15W. SM ADL18 9 8EC ]. T45. R]SW, SM 0 1000 2000 3000 4000 50008US 1:30000 ADL39190 SEC M. DS, R15W. SM SEC 35, TIS, R15W.:r: SurtacS SEC 2 Iue( lest Energy IrL— Affidavit Cosmopolitan Project H16 -L1 Spacing Exception Attachments H16 -L 1 Spacing Exception Attachments IIueC lest Energy July 13, 2017 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 71' Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H16 -LI Well Dear Commissioners, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H16 -LI well. Cosmopolitan Project BlueCrest Energy - H16 -L1 Affidavit BlueCrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 I, Andrew Buchanan, verify that the facts stated are true and the plat correctly portrays all pertinent and required data. Regards, Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone(907)754-9563 The foregoing instrument was acknowledged before me on the /3 day of _ 2017. By Andrew A. Buchanan. Notary Public in and for Alaska My Commission Expires:elMb¢f �a,t��. Brunt H. Warrick Notary Public, State of Alaska Commission # 1 41 201 020 My Commission Expires December 1, 2018 BlueCrest Energy - H16 -Lf Affidavit lue(,7est Energy Notification Information Cosmopolitan Project Hl 6 -Ll Spacing Exception Attachments H16 -L1 Spacing Exception Attachments /I eLiest Energy Cosmopolitan Project H16 -L1 Spacing Exception Notification Information Alaska Department of Natural Resources - Units Section, Division of Oil and Gas Unit Manager 550 IN 7"' Ave, Suite 1100 Anchorage, Alaska 99501-3560 Sent: July 13, 2017 210stal S TIFIFr Domestic Mall Only For deli"Intwmotiw, WON our rebuffi Of rrr.usq.com°. 11- ..�itlM A`eFr ru Q' .6Talvkf•��w+m. .. �.. j►,.. r..a,u rra.w f . O O it Alaska Department of Natural Resources Unit Manager Units Section, Division of Oil & Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99501-3560. H16 -LI Spacing Exception Notification Information OlueNst Energy Bureau of Ocean Energy Management —Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503 Sent: July 13, 2017 Cosmopolitan Project H16 -Lt Spacing Exception Notification Information e" r. t 0 ru M i�•"ii a(::: or yn ic�m+e Mr F. i ru .t C3 Li w,...rr......a.., t .. C3 Bureau of Ocean Energy Mgmt - Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive Suite 500 Anchorage, AK 99503. H16 -L1 Spacing Exception Notification Information