Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation Commission
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HomeMy WebLinkAboutCO 778CONSERVATION ORDER 778
Docket Number: CO -19-016
1. September 9, 2019 Hilcorp Alaska LLC Application for Spacing exception North Cook
Inlet Unit NCI -A-03 Well
2. September 11, 2019 Notice of hearing, affidavit of publication, email
distribution, mailings
ORDERS
Colombie, Jody J (CED)
From:
Michael Schoetz <mschoetz@hilcorp.com>
Sent:
Wednesday, October 23, 2019 9:41 AM
To:
Colombie, Jody J (CED)
Cc:
Kevin Tabler, Dan Marlowe; Juanita Lovett
Subject:
Withdrawal of Spacing Exception - NCI -A-03 Well
Jody,
Per our conversation this morning, Hilcorp Alaska, LLC (Hilcorp) plans to perform its proposed perforation and
recompletion operations on the NCI -A-03 Wellnn 'or to its proposed operations on the NCI -A-09 Well. This will make the
NCI -A-03 Well the first gas well in governmental Section 1, T1 1N, R10W, S.M. to be capable of producing, and thus, not
require a spacing exception. Therefore, Hilcorp would like to withdraw its request for a spacing exception for the NCI -A-
03 Well, and respectfully requests that its submitted Application for Sundry Approval for said well be approved.
As a result, a spacing exception will be required in accordance with 20 AAC 25.055(a)(4) should Hilcorp desire to
perform its proposed operations on the NCI -A-09 Well, as it would then be the second gas well capable of producing in
the above referenced governmental section.
Should you require any additional information, or have any questions, please contact me at the information below.
Thank you,
Michael W. Schoetz, CPL
Hilcorp Alaska, LLC
Senior Landman
Office: (907) 777-8414
Mobile: (281) 685-0902
Email: mschoetz(a),hilcoro.com
3800 Centerpoint Dr., Suite 1400 1 Anchorage, Alaska 99503
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INDEXES
2
Notice of Public Hearing
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket Number: CO -19-016
The application of Hilcorp Alaska, LLC for an exception to the spacing requirements of 20
AAC 25.055(a)(4) to perforate, recomplete, and produce the North Cook Inlet A-03
development gas well within the same governmental section as a well that is, or may be,
capable of producing from the same pool.
Hilcorp Alaska, LLC, by letter received September 9, 2019, requests the Alaska Oil and Gas
Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements
of 20 AAC 25.055(a)(4) because the North Cook Inlet A-03 development gas well will be
perforated, recompleted, and produced within the same governmental section as a well that is, or
maybe capable of, producing from the same pool.
North Cook Inlet A-03 Well
Surface Location: 1250' FNL, 1087' FWL, Sec. 6, TI IN, R9W, Seward Meridian
Target Location: 1587' FNL, 250' FEL, Sec. 1, TI IN, R10W, Seward Meridian
Bottom -hole Location: 1593' FNL, 337' FEL, Sec. 1, TI IN, R10W, Seward Meridian
The AOGCC has tentatively scheduled a public hearing on this application for October 15, 2019,
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 September 30, 2019.
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 October
3, 2019.
In addition, written comments regarding this application may be submitted to the AOGCC at 333
West 7th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m.
on October 12, 2019, except that, if a hearing is held, comments must be received no later than the
conclusion of the October 15, 2019 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
(/ er 12, 2019,
Daniel T. Seamount, Jr.
Commissioner
STATE OF ALASKA
ADVERTISING
ORDS
1\LLl�
NOTICE TO PUBLISHER
SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED
AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT.
ADVERTISING ORDER NUMBER
AO-20-003
FROM: AGENCY CONTACT:
Jody Colombie/Samantha Carlisle
Alaska Oil and Gas Conservation Commission DATE OF A.O. AGENCY PHONE:
333 West 7th Avenue 9/10/2019 (907) 279-1433
Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED-.-
EQUIRED:COMPANY
COMPANYCONTACT NAME:
PHONE NUMBER: ASAP
FAX NUMBER:
907) 276-7542
TO PUBLISHER: SPECIAL INSTRUCTIONS:
Anchora e Daily News, LLC
PO Box 140147
Anchorage, Alaska 99514-0174
TYPE OF ADVERTISEMENT: iw LEGAL F DISPLAY F CLASSIFIED F OTHER (Specifybelow)
DESCRIPTION PRICE
CO-19-016
Initials of who prepared AO: Alaska Non -Taxable 92-600185
suB
:,.i_1tvivo
O.DEitNeU;Ce.ksnowIN1i:AuvERrlsixs
PUBLICATION WITH ATTACHG,ib coev of
ADvsRTISMENT Ti;
AOGCC
333 West 7th Avenue
Anchorage, Alaska 99501
Pae 1 of 1
Total of
All Pages S
REF Type I Number Amount Date Comments
1 PvN IVCO21795
2 AO AO-20-003
3
4
FIN AMOUNT SY Art. Template PCM LGR Object FY I DIST LIQ
i
1 20 XAOV 9' 3046 1 20
2
3
4
5
Purchasi gAu ri
i e
Purchasing Authority's Signature _ Telephone Number
I1. A.O. # an r civ' a ppea n all invoices and documents relating to this purchase.
2. The state gisteredfortax freetrans tionsun er Chapter 32, IRScode. Registration number 92-73-0006 K. Items are for the exclusive use of the state and notfor
resale.
DISTRIBUTIOM,
I)iviyioq Fiscal/Qriingal AO Cgpjes: Nblisiler (f"ort:, DivJsioq Fiscal, Receivllpg
Form: 02-901
Revised: 9/10/2019
Bernie Karl
K&K Recycling Inc. Gordon Severson Penny Vadla
P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave.
Fairbanks, AK 99711 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 Fairbanks, AK 99706
ANCHORAGE DAILY NEWS
AFFIDAVIT OF PUBLICATION
Account #: 270227 Order #: W0011502 Cost: $298.82
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Leilisi Misa
being first duly sworn on oath
deposes and says that 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
September 11, 2019
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 this GAJ day of f9f �'
Notice of Public Wearing
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket Number: CO -19-016
The application of Hilcorp Alaska, LLC for •an exception to the
spacing requirements of 20 AAC 25.055(a)(4) to perforate,
recomplete, and produce the North Cook Inlet A-03 development
gas well within the same governmental section as a well that is, or
may be, capable of producing from the same pool.
Hilcorp Alaska, LLC, by letter received September 9, 2019, requests
the Alaska oil and Gas Conservation Commission (AOGCC) issue
an order for an exception to the spacing requirements of 20 AAC
25.055(a)(4) because the North Cook mlet A-03 development gas.
well will be perforated, recompleted, and produced within the
same governmental section as a well that is, or maybe capable of,
producing from the same pool.
North Cook Inlet A-03 Well
Surface Location: 1250' FNL, 1087' FWL, Sec. 6, T11N, R9W,
Seward Meridian
Target Location: 1587' FNL, 250' FEL, Sec. 1, T11N, R10W, Seward
Meridian
Bottom -hole Location: 1593' FNL, 337' FEL, Sec. 1, T1 IN, R10W,
Seward Meridian
The AOGCC has tentatively scheduled a public hearing on this
application for October 15, 2019, at 10:00 a.m. at 333 West 7th
Avenue, Anchorage, Alaska 99501. To request that the tentative]
scheduled hearing be held, a written request must be filed with
the AOGCC no later than 4:30 p.m. on September 30, 2019.
If a request for a hearing is not timely filed, the AOGCC may
consider the issuance of an order without a hearing. To learn ifthe AOGCC will hold the hearing, call (907) 793-1221 after October
in addition, written comments regarding this application may be
submitted to the AOGCC at 333 West 7th Avenue, Anchorage,
Alaska 99501. Comments must be received no later than 4:30
).m. on October 12, 2019, except that, if a hearing is held,
-omments must be received no later than the conclusion of the
October 15, 2019 hearing. -
f, because of a disability, special accommodations may be needed
o comment or attend the hearing, contact the AOGCC's Special
Assistant, Jody Colombia, at (907) 793-1221, no later than October
12,2019.
/signature on file//
)amel T Seamount, Jr.
,ommissioner
Published: September 11, 2019
1
l#1
Hilcorp Alaska, LLC
September 9, 2019
Jessie Chmielowski, Chair
Alaska Oil and Gas Conservation Commission
333 West 7`h Avenue, Suite 100
Anchorage, Alaska 99501
RE: Application for Spacing Exception
North Cook Inlet Unit NCI -A-03 Well
Dear Commissioner Chmielowski,
Post Office Box 244027
Anchorage, AK 99524-4027
3800 Centerpoint Drive
Suite 1400
Anchorage, AK 99503
Phone: (907) 777-8414
Fax: (907) 777-8301
Email: mschoetz@hilcorp.com
RECOVEN)
SEP 0 0 2019
Hilcorp Alaska, LLC (Hilcorp), as Operator of the North Cook Inlet Unit, hereby submits
this application for spacing exception to recomplete the NCI -A-03 Well (API# 50-883-
20020-00) in an undefined pool lying above the Tertiary Systems Gas Pool. The productive
interval and location for the proposed recompletion operations are listed below and further
depicted on the attached Exhibit A:
Surface Location:
• State Lease ADL 017589
• 1,250' FNL, 1,087' FWL
• Section 6 TI IN — R9W S.M.
Top of the Producing Interval:
• State Lease ADL 037831
• 1,587' FNL, 250' FEL
• Section 1 T11N—R10W
Bottom of the Producing Interval:
• State Lease ADL 037831
• 1,593' FNL, 337' FEL
• Section 1 T11N—R10W
In accordance with 20 AAC 25.055(a)(4)t, not more than one (1) gas well may be drilled to
and completed in that [undefined] pool on any governmental section. If the results of the
NCI -A-03 Well are successful it may be the second well within Section 1 producing from
the undefined pool.
'Per 20 AAC 25.055(a)(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."
Hilcorp Alaska, LLC
Spacing Exception for NCI -A-03 Well
September 9, 2019
Page 2 of 5
The NCI -A-03 Well is currently producing intermittently from the Tertiary Gas Systems
Pool. Hilcorp's proposed operations target certain formations lying within the Tertiary
Systems Gas Pool, governed by Conservation Order 68, and above said Pool. A spacing
exception is required for those proposed perforations lying above the Tertiary Gas Systems
Pool.
The proposed NCI -A-03 Well operations target undrained reserves that cannot be reached
by wells conforming to applicable spacing restrictions. The correlative rights of all affected
owners, landowners, and operators will be protected by approval of this application.
As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1),
notice of Hilcorp's intent to recomplete the NCI -A-03 Well has been sent by certified mail
to those certain owners, landowners, and operators of property within 3,000 feet of the well
listed in Exhibit B. A copy of the notice and corresponding certified mailing receipt has been
enclosed with this application.
Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit C, is an affidavit executed by a
person acquainted with all pertinent facts of this application and verifying that all facts set
forth herein are true.
It is requested that the Commission schedule a public hearing to review Hilcorp's application
for a spacing exception for its proposed operations for the NCI -A-03 Well in accordance
with 20 AAC 25.540.
Should you require additional information regarding this application, please contact me by
phone at (907) 777-8414 or by email at mschoetznn,hilcorp.com
Sincerely,
Michael W. Schoetz,, CFrL
Senior Landman
Hilcorp Alaska, LLC
cc: James Beckham, Acting Director, Division of Oil and Gas (via email)
Justin Black, Petroleum Land Manager, Alaska Division of Oil & Gas (via email)
Jody Colombie, Special Assistant, AOGCC (via email)
Samantha J. Carlisle, AOGCC (via email)
COPY
■ Complete items 1, 2, and 3. a Slgnamra
■ Print your name and address on the reverseX ❑ Agent
so that we can return the card you. I 0 Md.
• AHech this card to the back of the mailplece, a BecOved by (Printed Name) C. Date of Deft
or on the front ifaoace uennits.
Mr. James B. Beckham, Acting Director
DAsslen of Oil & Gas
Alaska Department of Natural Resources
550 W. 7th Avenue, Suite 1100
Anchorage, Alaska 99501
III' I'll null l'l' IIIIIIIIIII�I
9590 9402 3982 8079 2117 03
2, Atllcle Number diansfer from servke kbe0
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l#7
Hilcorp Alaska, LLC
Mr. James B. Beckham, Acting Director
Division of Oil & Gas
Alaska Department of Natural Resources
550 W. 7th Avenue, Suite 1100
Anchorage, Alaska 99501
RE: Notice of Application for Spacing Exception
North Cook Inlet Unit NCI -A-03 Well
Mr. Beckham,
Post Office Box 244027
Anchorage, AK 99524-4027
3800 Centerpoint Drive
Suite 1400
Anchorage, AK 99503
Phone: (907) 777-8414
Fax: (907) 777-8301
Email: mschoetz@hilcorp.com
Hilcorp Alaska, LLC (Hilcorp), as Operator of the North Cook Inlet Unit, will be
submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) an application
for spacing exception to recomplete the NCI -A-03 Well (API# 50-883-20020-00) in an
undefined pool lying above the Tertiary Systems Gas Pool.
Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties
within 3,000 feet of a well drilling for gas for which an exception is sought must receive
notice of such exception application by the applicant.
As the landowner of those certain properties located within 3,000 feet of Hilcorp's NCI -
A -03 Well depicted on Exhibit A, being ADLs 017589, 018740, and 037831, please allow
for this letter to serve as notice of Hilcorp's intent to submit an application for a spacing
exception for its proposed operations, and its request for the AOGCC to schedule a public
hearing to review said application in accordance with 20 AAC 25.540.
In accordance with 20 AAC 25.055(a)(4)1, not more than one (1) gas well may be drilled
to and completed in that [undefined] pool on any governmental section. If the results of
the NCI -A-03 Well are successful it may be the second well within Section 1 producing
from the undefined pool.
The NCI -A-03 Well is currently producing intermittently from the Tertiary Gas Systems
Pool. Hilcorp's proposed operations target certain formations lying within the Tertiary
Systems Gas Pool, governed by Conservation Order 68, and above said Pool. A spacing
' Per 20 AAC 25.055(a)(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."
Hilcorp Alaska, LLC
Notice of Application for Spacing Exception for NCI -A-03 Well
September 4, 2019
Page 2 of 3
•tM- tF
r:.
exception is required for those proposed perforations lying above the Tertiary Gas
Systems Pool.
The proposed NCI -A-03 Well operations target undrained reserves that cannot be reached
by wells conforming to applicable spacing restrictions. The correlative rights of all affected
owners, landowners and operators will be protected by approval of this application.
Should you require additional information regarding this application, please contact me by
phone at (907) 777-8414 or by email at mschoetzghilcorp com
Sincerely,
Michael W. Schoetz, CPL
Senior Landman
Hilcorp Alaska, LLC
Hilcorp Alaska, LLC
Notice of Application for Spacing Exception for NCI -A-03 Well
September 4, 2019
Page 3 of 3
COPY
EXHIBIT A
APPLICATION FOR SPACING EXCEPTION
North Cook Inlet Unit NCI -A-03 WELL
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3800 Centerpsint Drive
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Anchorage, AK 99503
■ Go,-r4aWo Items 1. 2, snd I
■ Print your name and>sddmm an the reverse
so that we can return the card to you.
■ poach ihts card to the hack of the madpieae,
Mr. Jan -'es B. Deckham, Aciialg Dimctur
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Alaska Department or Nalural 1jesorNcas
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Hilcorp Alaska, LLC
Spacing Exception for NCI -A-03 Well
September 9, 2019
Page 3 of 5
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APPLICATION EXHIBIT A
FOR SPACING EXCEPTION
NORTH COOK INLET UNIT NCI -A-03 WELL
State WSIS,,
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