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Home My WebLink AboutCO 750CONSERVATION ORDER 750 Docket Number: CO -18-018 1. July 12, 2018 BlueCrest application for spacing exception 2. July 23, 2018 Notice of hearing, affidavit of publication, email distribution, mailings STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7t" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest ) Docket Number: CO -18-018 Alaska Operating LLC to drill, complete, ) Conservation Order 750 test, and produce the Hansen H-16A-LOI ) Cosmopolitan Unit development oil well branch within the ) Hansen Undefined Oil Pool same governmental quarter sections as, and ) Hansen H -16A -LO 1 within 1,000 feet of, wells and well branches ) Oil Development Well Branch that are, or may be capable of, producing ) Kenai Peninsula Borough, Alaska from the same pool. ) September 13, 2018 IT APPEARING THAT: By a letter received July 12, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H-16A-LO1 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, wells and well branches that 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 6, 2018. On July 23, 2018, 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 24, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. 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-16A-LO1 development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—and provided the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated following the 30 -day public comment period. 6. B1ueCrest's application 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, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H-16A-LO1 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,408 feet from the south line (FSL) and 1,509 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie CO 750 September 13, 2018 Page 2 of 3 offshore about 1,950 feet FSL and 2,933 feet FEL of Section 29, Township 3 South (T3S), Range 15 West (1115W), S.M. The bottom -hole location will lie offshore about 4,428 feet FSL and 3,891 feet FEL of Section 33, T3S, R15W, S.M. 3. The surface location for Hansen H-16A-LO1 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-16A-LO1 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-16A-LO1 will be located within the governmental quarter sections as, and within 1,000 feet of, the following development oil wells and well branches that are, or may be capable of, producing from the same oil pool: Hansen IA, Hansen IA -Ll, Hansen H-12, Hansen H-12-1,01, Hansen H-12-LO2, Hansen H-12-LO3, Hansen H-14, and Hansen H -14L1. 6. The well path and bottom -hole location for Hansen H-16A-LO1 were chosen—based on reservoir mapping and modeling results—to 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 and well branches. 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-16A-LO1 development oil well branch at a location that will maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-16A-LO1 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants B1ueCrest's July 12, 2018, 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 -16A -L01 development oil well branch within the Hansen Undefined Oil Pool. B1ueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements DONE at Anchorage, Alaska and dated September 13, 2018. Celt Daniel T. Seamount, Jr. n „lathy P. Foerster 'M Commissioner Commissioner CO 750 September 13, 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 must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whale or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reeansideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the dale of the event or default after which the designated period begins to ran is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 711 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill, complete, test, and produce the Hansen H-16A-LO1 development oil well branch within the same governmental quarter sections as, and within 1,000 feet of, wells and well branches that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-018 Conservation Order 750 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-16A-LOI Oil Development Well Branch Kenai Peninsula Borough, Alaska September 13, 2018 1. By a letter received July 12, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H-16A-LOI development oil well branch within the same governmental quarter section as, and within 1,000 feet of, wells and well branches that are, or may be capable of, producing from the same pool. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for September 6, 2018. On July 23, 2018, 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 24, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 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-16A-LOI development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—and provided the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated following the 30 -day public comment period. 6. BlueCrest's application 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, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H-16A-LOI will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,408 feet from the south line (FSL) and 1,509 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie CO 750 September 13, 2018 Page 2 of 3 offshore about 1,950 feet FSL and 2,933 feet FEL of Section 29, Township 3 South (T3S), Range 15 West (R15W), S.M. The bottom -hole location will lie offshore about 4,428 feet FSL and 3,891 feet FEL of Section 33, T3S, R15W, S.M. 3. The surface location for Hansen H-16A-LOI 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-16A-LO1 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-16A-LO1 will be located within the governmental quarter sections as, and within 1,000 feet of, the following development oil wells and well branches that are, or may be capable of, producing from the same oil pool: Hansen IA, Hansen IA -Ll, Hansen H-12, Hansen H-12-LO1, Hansen H-12-1,02, Hansen 11-12-LO3, Hansen H-14, and Hansen H-141,1. 6. The well path and bottom -hole location for Hansen H -16A-1,01 were chosen—based on reservoir mapping and modeling results—to 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 and well branches. 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-16A-LOl development oil well branch at a location that will maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H -16A -L01 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 12, 2018, 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-16A-LOI 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 September 13, 2018. //signature on file// //signature on file// Daniel T. Seamount, Jr. Cathy P. Foerster Commissioner Commissioner CO 750 September 13, 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 giants for good cause shown, a person affected by it trey file with the AOGCC an application for reconsideration of the matter detera ned by it. tribe notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in pan within 10 days after it is filed. Failure to act on it within I0days is a denial of reconsideration. Ifthe AOGCC denies recm asideration, upon denial, this order or decision and the denial ofreconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration. UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for recoreideration 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 nm 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 nms until 5:00 p.m. on the nc.1 day that does not fall on a weekend or state Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Penny Vadla 399 W. Riverview Ave. 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 Fairbanks, AK 99706 m _& N Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-017 Docket Number: CO -18-018 Docket Number: CO -18-019 Docket Number: CO -18-020 Docket Number: CO -18-021 Docket Number: CO -18-022 Docket Number: CO -18-023 Docket Number: CO -18-024 The applications of B1ueCrest Energy (B1ueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen HI 6A well and the Hansen H-16A-LO1, Hansen H -16A -L02, Hansen H -16A -L03, Hansen H -16A -L04, Hansen H -16A -L05, Hansen H -16A -L06, and Hansen H -16A -L07 well branches. B1ueCrest, by letter dated July 12, 2018, 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 and well branches will be drilled within the same governmental quarter sections as, and within 1,000' of, wells Hansen H-12 and Hanson H-14 and well branch Hansen IAL1, which are, or maybe capable of, producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for September 6, 2018, 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 9, 2018. 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 10, 2018. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7`" Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on August 27, 2018, except that, if a hearing is held, comments must be received no later than the conclusion of the September 6, 2018 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 30, 2018. Hollis S. French Chair STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMR INVOICE SROWIVG ADVERMING ORDER NO, C TWIED AFFIDAVIT OF PUBLICATION WTIH ATTACHED COPY OF ADVERTISMENT. ADVERTISwG ORDER NUhMER 1n AO-19-001 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 7/23/2018 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907)276-7542 TO PUBLISHER Anchorage Daily News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT- LEGAL DISPLAY CLASSIFIED OTHER (Specifybelow) DESCRIPTION PRICE Docket NO's CO-18-017 through CO-I8-024 Initials of who prepared AO: Alaska Non -Taxable 92-600185 :SUBIrl IT:INVQIeBSHOWB`IGADNERTI9INO :OBDEANO.; CERTIFIE4AFFIDASTT�OF.�:� ... ........... ... .. ....... ........ :.P.UBLICA-TIDN WilH:A4;ACHIIlOOPY.OF. . ..... ...... ... .. ...... AOGC(' 333 West 7th Avenue Anchorage, Alaska 99501 Pae 1 of 1 Total 0( All Pages $ REF Type I Number Amount Date Comments I PVN IVCO21795 2 AO AO.19-001 3 4 FIN AMOUNT1 Sy Act Tem late PGM LGR ObJed FY DIST LIQ t1 19 A14100 3046 19 2 3 4 P rchesin f. A h%r' Tifl: Purchasing Authority's Signature Telephone Number 1. a 'receidng agency name must I invoices and documents relating to this purchase. 2. h state is mastered 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 IS DI$TRiBUFiON ... IVI§IOII Fis¢aI/Orfglual:AO j, . PubIIsI1eY (lased),DIP1srDH::t!L.... RCC0L.... Form: 02-901 Revised: 7/23/2018 JUL 2 6 21018 AFFIDAVIT OF PUBLICATION AOGCC Account#: 270227 Order# 0001425117 Product ANC -Anchorage Daily News ST OF AKIAK OIL AND GAS Cost $249.02 Placement 0300 CONSERVATION COMMISSION Position 0301 333 WEST 7TH AVE STE 100 nniruncnr-c eitooFnl¢cao STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he/she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in 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 24, 2018 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 l Jole a Steoetin Subscribed and sworn to before me this 24th day of July, 2018 �l Notary PuIc i and for The State of laska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES �1C�Z313019 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-017 Docket Number: C0-18-018 Docket Number: CO -18-019 Docket Number: CO -18-020 Docket Number: CO -18-021 Docket Number: CO -18-022 Docket Number: CO -18-023 Docket Number: CO -18-024 spacing) requ rements of 20tAAACr25 055e orethefdrill ngxof tthe Hansen 116ALO3e0Hansen H 16A-1-04, Hansenansen H-16AQL05, 1Hansen H-1Hansen06, and Hansen H -16A -L07 well branches: 101111 ndnsen -iryn, wnicn are, or maybe. capable of, producing from the same pool. The AOGCC has tentative )VV scheduled a public hearing on this. application for September 6, 2018, at 10:00 a.m. at 333 West 7th Avenue Anchorage, Alaska 99501. To request that the tentatively schedufed hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 9, 2018. If a request for a hearing is not timely filed, the AOGCC m the issuance of an order without a hearing. To learn if the hold. the hearing, call (907) 793-1221 after August 10, 2018. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Sppecial Assistant, Jody Colombia, at (907) 793-1231, no later than August 3o, 2018. Published: July 24, 2018 Hsignature on file// Hollis S. French Chair, Commissioner Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 1 iue , 5e Energi July 12, 2018 Alaska Oil and Gas Conservation Commission 333 West 7`h Avenue, Suite 100 Anchorage, Alaska 99501 Cosmopolitan Project BlueCrest Energy - H16A-1-01 Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: lburgess@bluecrestenergy.com RE: Application for Spacing Exception for H16A-L01 Onshore Horizontal Producer JUL 12 20118 Dear Commissioners, AO "^ C "; BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H10401. H16A-L07 will lie within the same governmental quarter sections as, Hansen 1AL3, H14 and H12 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 (ADNR 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. Reservoir modeling indicates that the optimum spacing for the laterals is 800'. Because of that spacing, the laterals are in conflict with each other as well as neighboring wells. Also, due to the 303° azimuth we are drilling for hole stability, there are multiple Instances where two or more of the laterals will be within the same X section. For these reasons, in lieu of pool rules that would allow for this unique and field specific spacing, BlueCrest Energy is requesting a spacing exception. 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 Andrew Buchanan at 907-754- 9563. Sincerely, Larry 8Qurgj/e/ss Alaska Manager BlueCrest Energy - H16A-L01 Spacing Exception_AOGCC /�st Energy Application for Spacing Exception Horizontal Producer H16A-L 01 Table of Contents Cosmopolitan Project H 16A-LO1 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 Notijlcationinformation ........................................................................................................3 11Page H16A-L01 Application for Spacing Exception lue si Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H 16A-1-01 Application for Spacing Exception 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 10AAC 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) fora well drilfing for oll, a wellbore maybe 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 (1) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of o property line only if the owner is the same and the landowner is the same 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 quartersection; 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) ffgas 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. 21Paga H16A-L01 Application for Spacing Exception 1ne t Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H16A-LO1 Application for Spacing Exception The commission will review on application for on exception to the provisions of this section in accordance with 10 AAC 25.540. The applicant for on exception sholl 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 o copy of the notice, the dote 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) Please see Attachment 3: Notification Information (2) a plot drawn to a scale of one inch equaling 2,640 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 ag facts are true and that the plat 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 3(Page H16A-LO1 Application for Spacing Exception H16A & H16A-L01 With 1000' Radius Around Production Section Fcosmopolitan Unit Development o loon 2M a000 .000 50OMS osr oompmy -- -1010712018 81usCmst EnaW _ 1'30000 X15 71 fu t Energy Cosmopolitan Project BlueCrest Energy - H16A-1-01 Affidavit BlueCrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 July 12, 2018 State of Alaska Alaska 011 and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H16A-LO1 Well Dear Commissioners, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H26A-LO3 well. 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(9O7)754-9563 The foregoing instrument was acknowledged before me on the 2 day of Su 4 2O1g. By Andrew A. Buchanan. —� Notary Public in and for Alaska My Commission Expires: Brunt H. LExpires aQ�t Notary Public, Sa•- Commission kO My Commiss December BlueCrest Energy - H16A-LOr ABidavif s M M u1 M 0' M ru 0 C3 C3 L fIgi M ED I' M ru 0 r3 0 J m Er ErM m ru C) M C) r r r $1.11 07/12/2018 Alaska Depardierklof Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. 1-04 U.S. Postal Service'm CERTIFIED o RECEIPT -B Domestic Mail Only m En ANCMW! At `9`+.)1 'D Certiliael Maul Fee c l2 { Q„ $ '•�. Y.i ,. c M Eiva Services 8 Fees (cn xbo ,Dee ae I 1 I' l'arel F ORat m Rmeipt(IwNcopy) E rU [I RM. lac pt (elecaonic) § QI1 itt B' Poslmark 0 0 ❑Ce iad Mail RasVictetl Delivery S ( Hera O O❑Mutt signatureRequired S CMUX $ignaure Restricletl OeNveryE , Ste' $1.21 Alaska Depart"pf Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. ANCR'F s 41(t9 )1 E11 :. AN r r l{ ?X11 ,. ANI' 1"li lip r,.l Certifietl Mtil Feey r -F 4 $3.45 ;"y - $erti6ed Mal Fee $ 4 v 45 �d5 (1' F p; - S Extm Services 8 Fees fcnecxdox, ace ka lc at 1' i (11 m r Extra Services S Fees fareaxbox, tidy lee ORetum Re ipt(Xmtlwpy) $ ORaumR aiplrnmdcopY) $ ❑PNum ReceiDi lekcVunlq $ �p5t111 �' $ Qom- N C3 ❑Relum Receipt(elmat nlc) 8 /�] 5�myary�E O ❑ CMftd Mall AM1,10ad Delivery § slog t�1BRA -+ OC�ed Mail Restricteeoal'rvery - 0/EJM 0 CMPX Sgnalure Requiretl S OC3 C3 QMuX Signature Rdryaed $ �Adutt SignaNre flasdretetl ee'uvery5 CAdurt Ciglature Restricted Delivery$ 1, �� ,n /,� ?i ' CRemrn ReceiPl IneNcopy) $ I Fletum Receipt Orvdcopy) $ i Alaska DeparMni4of Natural Resources - Units Section Alaska Depargq ,of Natural Resources - Uni)ts Division of Oil and Gas �Section /T Division of Oil and Gas / 6A - Unit Manager O Unit Manager L I 550 W 7th Ave, Suite 1100 L C7 550 W 7th Ave, Suite 1100 o Anchorage, Alaska 99501-3560- Anchorage, Alaska 99501-3560. Cifrililiii ANCgeI' °911 .. e:° r ANI' 1"li lip -- Mal Maul Fee _ $3.45 rti/ietl Fee �c �-• �c m F.H. Services 8 Fees fcnedeox, aye lee tra Services 8 Fees (cnecx box, add /eegq arm fall ?i ' CRemrn ReceiPl IneNcopy) $ I Fletum Receipt Orvdcopy) $ i O 0 Return 1 e 6' (sleet ) $ ReceiPl (ekcimniq § 11 1 - -' 6 �M' '110 a tp�a Wr §/ O CCe ey Mal ResMgM polivery g [i, ! �j C.difi Cedifletl Mal Reetncled CeMey $ Here. ❑Mint Sgnalure Reaula, J AduX Sgnalure Required S_w.� tS CMUX Signature gestncled pelivary§ ;!,•!\`j ] Adult Signature Resnlcted Delivery $ '( ,., C3 yGi. Postage $1.21 Ny 09 $1 .21 r Alaska Depailliriall4of Natural Resource's'- Units zmcion Division of Oil and Gas Unit Manager t 550 W 7th Ave, Suite 1100 L0(- r Anchorage, Alaska 99501-3560. - ./2018 Alaska DeparlQerklof Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 L o 2. Anchorage, Alaska 99501-3560. u1 ANrt1LIRAacr �•� 9�ilt AP:CiiTIF.'GiGt"", At o4a5jt f a m Certified Mail Fee 5 Sn 4 ._ . Certified Mail Fee$ _$ _-4 _ -A e 'v cr $ 7 F Y tr $ s.' 11,24 rn $ c V D� q m Extra Services 8 Fees fcned Dox, add nee .e re) 02 m Extra Service 8 Fees (re xbdx, ewre qb 14 d• ❑Return Receipt Nemcopyl $ �11 Ilii - e P ❑Return Receipt OaNcop>7 W ORelum RaP,t(.'e nlc) E 4.11.1111=— �� OSlmadf ru Ore. RacelPl (eletlronic) E Q!I" _�- �_v p� � ❑Certixetl Mal R�Xtctetl Delivery $Wit;', ? _ ° `' G� 3 ❑Cee?ed Mal Rertnaad Delivery $ —cif+ 10 Hare o C3 ❑Amm Sigmturel1agwad $ O O CMunsignawre Ragared $ v+ r DMA Signature Restndeel Delivery $a,, ❑Malt Sig�ture Readaed DaNeryE 6. � ��.. Pdstaga $1.21 NG1dVi '.g. Alaska ge 02018 Alaska DeparkWtnif Natural Resources - Units Section Alaska Deparl$ribntbf Natural Resources -Units Section Division of Oil and Gas Division of Oil and Gas Unit Manager Unit Manager 550 W 7th Ave, Suite 1100550 550 W 7th Ave, Suite 1100 L o 3 O Anchorage, Alaska 99501-3560. L Anchorage, Alaska 99501-3560. - 07/12/2018 $7.y1 Bureau of Ocean Energy Management -Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. f16A Domestic Only Ln ANG(?FAr:Y R9`l3 �'- ru CERTIFIED Ln ANG $�Y o01d11 N Domestic m Certified Mail Fee f nu O ui,a SeN ties 8 Fares (c kbox,addfee rrn ❑Hurt Sig,uwreflequked =' r 0 I I I Mean Recapt lTeidCopY) $CA ui n.lPoslma ❑Malum Mecapt (aecwniq $ ray, C3 ❑Cednied Mail Heslnclai 0al'rvery $ - Hera a -:, P r�.�,.4 ❑Adun Signature Required $- - MaramumainaisyS ❑Adunsv�Me r/VM =3 01.0 Postage n i 111. _ - 07/12/2018 $7.y1 Bureau of Ocean Energy Management -Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. f16A $'7.41 Bureau of Ocean Energy Management - Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. . _ w Postal m ANG(?FAr:Y R9`l3 �'- T cc Ir CERTIFIED o RECEIPT M N Domestic O- ❑Baum ♦ �� ❑ Retum PecelPl(driamnic) E _y{y.`y Iftatmadl o Here y ❑CediaeO Mml Mesnictetl pelivery Ems. of nu O ❑RiumMtteiPt(imm-py) $ -II = r ❑Rewm Receipt lalecVo^ic) E �Oslm E �@re 3' ru ❑Hurt Sig,uwreflequked =' r 0 CerlRed Mal Resbtetl Daivery Pequired $ ui AN TISE$:"Alt gg=� ❑Molt Sig^ature y ❑�unSgnawreResidaedDaiveryE o 0 �1 M x c; Certified Mal Fee $;,45 Cl -:, P r�.�,.4 0—$ T Bureau of Oce Management -Alaska Region $7.41 Fxlra Services & Fees iib kbm,, Bureau of Ocean Energy Management- Alaska Region ❑flewrn Re aiPt (IwtlmPY) 3801 Centerpoint Drive, Suite 500 �'P� Office of Leasing and Plans ru ❑Maum Mc Ptlelecttpnb) $ O6 ❑CRrllfietl Mil ReslncleG Celivary . O I'f'�%f� - X05 Ln ❑Hurt Sigiture gequired $ S Now..J 0 ❑Hurt Signa,ae Restdn tlDexveryE m Ln O/1Nlltl .3 Postage y15 $'7.41 Bureau of Ocean Energy Management - Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. . _ w ANG#16_ • fl, '74�n?i C r ..' m ANG(?FAr:Y R9`l3 �'- T cc Ir Certdietl Mail Fee e i' $ —' Car�sd Mall Fee $`.4, eo P fir. M itc Extra Services &Fees (M k bot odd ee M61A rimmi.Y) E Ir $ " 'r rrl Extra Services 8 Fees (checx boR, addles IP l l n.l O ❑Baum ♦ �� ❑ Retum PecelPl(driamnic) E _y{y.`y Iftatmadl o Here y ❑CediaeO Mml Mesnictetl pelivery Ems. of nu O ❑RiumMtteiPt(imm-py) $ -II = r ❑Rewm Receipt lalecVo^ic) E �Oslm E �@re 3' ❑Hurt Sig,uwreflequked =' r 0 CerlRed Mal Resbtetl Daivery Pequired $ C3 �'!' • - \ ❑Mutt Signature d Raom,aDeliveryE N �� Mo �O C3 ❑Molt Sig^ature y ❑�unSgnawreResidaedDaiveryE o 0 �1 $1.21 07/12!2018 Cl Postage b1S N� $1.2_1 1 'ktZ/12r2i113 Bureau of Oce Management -Alaska Region $7.41 Office of Leasing and Plans Bureau of Ocean Energy Management- Alaska Region 3801 Centerpoint Drive, Suite 500 Office of Leasing and Plans Anchorage, Alaska 99503. 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503 . I'f'�%f� - X05 Ln �jf a -H.. ri Now..J Certified Mtil Fee $ - - Y` _ �4 m Ln _ ANCIDCt1G£ fi 9�y T Extra Serv,ces 8 Fens (neck wr, add leesyy�a¢orrppgqppTLAGE rV ' 'Y - Cerifed Mml Fee F K �sY r1 -I ❑ Retum ri.i, pam, ) ^ ❑Return Recapt INectm„ic) S i l 111! errmark. �� E" $ � O ❑Cert?,a] Mal gastricted Deilvay $ 7 (.mere ❑Hun Sgr,atun T ExVa Services & Fees (cneckboa, and fee s p1 Il l ❑gawm Receipt (rertlCOPY) E 1 '•/{1,•eOSh118dt M RepuirtE $ m -• ru II (Nj, ❑iummi isiptlelaitmaic) E . 1 a'./ o' r7 ❑Hun SignawreMrted[;,iu E Y6 h Postage s� $1.21 ♦r or D O ❑Certified Mal Pesti M1atl Delivery $ are ❑Hun Sgeawm Reguiree $ ❑Mpn syi,awra Me..ldptea Denrery $ $7.41 -g_Y _ o Postage $1 .2I Bureau of Ocean EnergyManagement agement -Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Bureau of Ocean Energy Management -Alaska Region Anchorage, Alaska 99503. Office of Leasing and Plans /Ga 3801 Centerpoint Drive, Suite 500 - �-OZ Anchorage, Alaska 99503. llaA-Lob M CertifiedMailFee $3,45 _ I w 0-' - .�. ., c. $ T Extra SefViCee&Feee (cneck box, add A,E, ♦�/�e' ) �fII Ir' 4 G, ❑Maumee«ipipulolp y) Ems_ N T FxtrO Services&Feel (check bos, edd lse ❑ Mum Maipt iiia`dwPy) $ K� �EP rl p fu y C] Mum Receipt lelectronk) S II (II Z oat H $ 4f�_-1 He A ru 0 ❑Return PereiPt (aemmric) E .I v ❑Cerllfetl Mail Pesti ted Delivery 8� Her 0 ❑CeNfied nLil Resxncbd Delivery i $ Q ❑MNL Signature Mequiretl E ` ❑Adunslgiaturt Reurimid ❑Aeon sianatare R�tdned Dalioeys - -- erNMOlG�1� ❑Hurt sgnawre Rearmtae oel;aery$ Np(1V L`' . C3 Postage $1.21 Postage $1.21 11711_ 1113 07i12i201E r $7.41 r $7.41 Bureau of Ocean Energy Management - Alaska Region Bureau of Ocean Energy Management -Alaska Region _ Office of Leasing and Plans Office of Leasing and Plans 3801 Centerpoint Drive , Suite 500 3801 Centerpoint Drive, Suite 500 r Anchorage, Alaska 99503. Anchorage, 99503. {14A--LO7 ///AC3