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217-112
AOGCC Page 1 M 2 Monday, October 28. 2019 DATA SUBMITTAL COMPLIANCE REPORT 10/28/2019 Permit to Drill 2171120 Well Name/No. SEAVIEW 6 Operator Hilcorp Alaska LLC API No. 50-231-20058-00-00 MD 480 TVD 480 Completion Date 9/12/2017 Completion Status INFO Current Status P&A UIC No REQUIRED INFORMATION L4 / `` ,,�1 MAadT Log NL' ' GS Samples Yes ✓ Directional Survey No v DATA INFORMATION List of Logs Obtained: GR -CCL, Lithology (from Master Well Data/Logs) Well Log Information: Log/ Electr Data Digital Dataset Log Log Run Interval OH / Type Med/Frmt Number Name Scale Media No Start Stop CH Received Comments ED C 28703 Digital Data 436 2 10/17/2017 Electronic Data Set, Filename: Seaview 6 Main Pass.las ED C 28703 Digital Data 10/17/2017 Electronic File: Seaview 6.pdf ED C 28703 Digital Data 10/17/2017 Electronic File: Seaview 6.tif Log C 28703 Log Header Scans 0 0 2171120 SEAVIEW 6 LOG HEADERS Log C 28835 Mud Log 2 10 480 10/17/2017 2 Lithology Logs ED C 28835 Digital Data 10 480 10/17/2017 Electronic Data Set, Filename: Hilcorp_Alaska_Seavi ew_6_LAS.las ED C 28835 Digital Data 10/17/2017 Electronic File: Hilcorp_S eaview_6_480ft_TD_2in_F i eld_Litholog y_Log.pdf ED C 28835 Digital Data 10/17/2017 Electronic File: Hilcorp_S eaview_6_480ft_TD_2in_F i eld_Litholog y_Log.tif ED C 28835 Digital Data 10/17/2017 Electronic File: Hi Icorp_S eaview_6_480ft_TD_5in_F i eld_Litholog y_Log.pdf ED C 28835 Digital Data 10/17/2017 Electronic File: H i Icorp_Seaview_6_480ft_T D_5in_F i eld_Litholog y_Log.tif Log C 28835 Log Header Scans 0 0 2171120 SEAVIEW 6 LOG HEADERS Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments AOGCC Page 1 M 2 Monday, October 28. 2019 DATA SUBMITTAL COMPLIANCE REPORT 10/28/2019 Permit to Drill 2171120 Well Name/No. SEAVIEW 6 Operator Hilcorp Alaska LLC API No. 50-231-20058-00-00 MD 480 TVD 480 Completion Date 9/1 212 01 7 Completion Status INFO Current Status P&A UIC No Wet Samples 30 480 8/22/2018 1663 1 box wet samples INFORMATION RECEIVED �. Completion Report Directional / Inclination Data Y �1urlL gs, Image Files, Digital Data l�' NA Core Chips Y /n OYr��, (,///S�� Production Test InformationBL1AVAI Mechanical Integrity Test Information Y / NA Composite Logs, Image, Data Files YG YU (C( -.Core Photographs Y (=- Geologic Markers/Tops Daily Operations Summary YO Cuttings Samples C/ NA Laboratory Analyses Y COMPLIANCE HISTORY Completion Date: 9/12/2017 Release Date: 10/12/2019 Description Date Comments Comments: Compliance Reviewed By: Date: 1 I AOGCC Page 2 of 2 Monday, October 28, 2019 Guhl, Meredith D (CED) From: Frank, Kevin J (DNR) Sent: Monday, October 14, 2019 10:46 AM To: Guhl, Meredith D (CED) Subject: RE: PTD 217-112, Seaview 6, Extended Confidentiality? Hi Meredith I have not seen anything regarding a request from Hilcorp for extended confidentiality for the stratigraphic test well Seaview 6. Thanks for checking. Cheers, Kevin lt'e,P K 1 /`aff10, k Petroleum Geologist Resource Evaluation Section Manager SOA -Dept. of Natural Resources Division of Oil and Gas 550 West 7th. Suite 1100 Anchorage, AK 99501-3560 (907)269-8791 kevin.fra nk@a laska.eov CONFIDENTIAL and PROPRIETARY pursuant to AS 38.05.020(b)(10),(11), and (12) and other applicable laws: This email message including any attachments is for the sole use of the intended recipient(s) and may contain confidential, privileged, or proprietary information also protected under AS 43.05.230 and AS 40.25.100 or other applicable law; any release of this information without proper approval is not authorized. If you are not the intended recipient, any unauthorized disclosure, copying, distribution or action in reliance on the contents of this document is prohibited. If you have received this document in error, please inform the sender immediately and destroy all copies of the original message. From: Guhl, Meredith D (CED) Sent: Monday, October 14, 2019 8:30 AM To: Frank, Kevin J (DNR) <kevin.frank@alaska.gov> Subject: PTD 217-112, Seaview 6, Extended Confidentiality? Hello Kevin, Has Hilcorp requested extended confidentiality for the stratigraphic test well Seaview 6, due for release after October 12, 2019? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Coi,...,ission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.euhiPalaska.eov. CDc7-!I2 Seth Nolan Hilcorp Alaska, LLC l �l GeoTech II 3800 Drive Anchoragerage,, AKK 99503 Tele: 907 777-8308 llilrorp A6oLn. IAA: Fax: 907 777-8510 E-mail: snolan@hilcorp.com NO LONGER CONFIDE CO"F1DEN ALRECE VE® DATE 08/22/2018 N11AL To: Alaska Oil & Gas Conservation CommissionOCr 2 20p AUG 2 2 2018 Meredith Guhl Petroleum Geology Assistant AOV^�� 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTAL SEAVIEW STRATIGRAPHIC TESTS WELL SAMPLE INTERVAL Seaview 6 30'- 480'(19 total samples) Please include current contact information if different from above. Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Guhl, Meredith D (DOA) From: Cody Dinger <cdinger@hilcorp.com> Sent: Thursday, December 7, 2017 7:46 AM To: Guhl, Meredith D (DOA) Cc: Davies, Stephen F (DOA) Subject: FW: Formations at TD for Pearl & Seaview Strat Test Wells Hi Meredith, Here are the formations at TD below. Thanks, Cody From: David Buthman Sent: Thursday, December 07, 2017 7:18 AM To: Cody Dinger <cdinger@hilcorp.com> Subject: RE: Formations at TD for Pearl & Seaview Strat Test Wells Hi Cody, Here's the formations at TD listing, below. Rgds, Dave Formation at TD: Strat Test Well Name Formation at TD Pearl 1A Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Pearl Upper Middle Sterling Seaview 1 Beluga Seaview 2 Beluga Seaview 3 Beluga Seaview 4 Beluga Seaview 5 Beluga Seaview 6 Beluga Upper Miuwe Seaview 7 Sterling DB 12/7/2017 From: Cody Dinger Sent: Tuesday, December 05, 2017 11:28 AM To: David Buthman <dbuthman@hilcoro.com> Subject: FW: Formations at TO for Pearl & Seaview Strat Test Wells Any thoughts on this? From: Guhl, Meredith D (DOA)[mailto:meredith.auhl(aalaska.eov] Sent: Tuesday, December 05, 2017 11:26 AM To: Cody Dinger <cdinger@hilcorP.com> Cc: Davies, Stephen F (DOA) <steve.daviesPalaska.eov> Subject: Formations at TD for Pearl & Seaview Strat Test Wells Hello Cody, I'm starting a review of the data received for the Pearl and Seaview strat test wells (all 14 of them). One of the initial issues I've noticed is none of the 10-407 forms have a formation listed at TO in Box 29. Could you please provide, at minimum, the formation at TO for all Pearl and Seaview wells. Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.euhl (@alaska.gov Direct: (907) 793-1235 CONFIDENT/ALITYNOT/CE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Meredith Guhl at 907-793-1235 or meredith.guhlOalaska.gov. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas E] SPLUG ❑ Other ❑ Abandoned ❑� ' Suspended❑ 20MC 25.105 2MAC 25110 GINJ ❑ WINJ ❑ WAG❑ WDSPL ❑ No. of Completions: 1b. Well Class: Development ❑ Exploratory ❑ Service ❑ Stratigraphic Test ❑� 2. Operator Name: Hilcorp Alaska, LLC 6. Date Comp., Susp., or Aband.: 9/12/2017. 14. Permit to Drill Number / Sundry: 217-112 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 7. Date Spudded: September 1, 2017 15. API Number: 50-231-20058-00-00 4a. Location of Well (Governmental Section): Surface: 2186' FNL, 1822' FWL, Sec 9, T5S, R15W, SM, AK Top of Productive Interval: N/A Total Depth: 2186' FNL, 1822' FWL, Sec 9, T5S, RI 5W, SM, AK 8. Date TD Reached: September 2, 2017 16. Well Name and Number: Seaview 6 17. Field / Pool(s): N/A 9. Ref Elevations: KB: ju,4� . GL:162.12' BF:N/A 10. Plug Back Depth MDfTVD: Surface 18. Property Designation: KPB ROW r41L� r` 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 159882.5301 y- 2108818.71 Zone- 4 TPI: x- y- Zone- Total Depth: x- 159882.5301 y- 2108818.71 Zone- 4 11. Total Depth MD/TVD: . 480'/480' • 19. DNR Approval Number: N/A 12. SSSV Depth MD/ VD: N/A 20. Thickness of Permafrost MD/ VD: N/A 5. Directional or Inclination Survey: Yes LJ (attached) No ❑✓ Submit electronic and printed information per 20 AAC 25.050 13. Water Depth, if Offshore: N/A (ft MSL) I 21. Re-drill/Lateral Top Window MD/TVD: N/A 22. Logs Obtained: List all logs run and, pursuant to AS 31.05.030 and 20 AAC 25.071, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Types of logs to be listed include, but are not limited to: mud log, spontaneous potential, gamma ray, caliper, resistivity, porosity, magnetic resonance, dipmeter, formation tester, temperature, cement evaluation, casing collar locator, jewelry, and perforation record. Acronyms may be used. Attach a separate page if necessary GR -CCL 2" MD, Lithology Log 2"/5" MD. ECEIVED SEP 2 5 2017 23. CASING, LINER AND CEMENTING RECORD AlUG- WT. PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING FT GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 6-5/8" 17# A53B 20' 220' 20' 220' 6" 40 sx bentonite grout to P&A 24. Open to production or injection? Yes ❑ No Q If Yes, list each interval open (MDrTVD of Top and Bottom; Perforation Size and Number; Date Perfd): ')AT iIWas 25. TUBING RECORD SIZE DEPTH SET (MD) PACKER SET (MD/TVD) N/A 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. hydraulic fracturing used during completion? Yes No Q Per 20 AAC 25.283 (i)(2) attach electronic and printed information DEPTH INTERVAL (MD) JAMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: N/A Method of Operation (Flowing, gas lift, etc.): N/A Date of Test: Hours Tested: Production for Test Period Oil -Bbl: Gas -MCF: Water -Bbl: Choke Size: Gas -Oil Ratio: Flow Tubing Press Casing Press: I Calculated 24 -Hour Rate Oil -Bbl: Gas -MCF: Water -Bbl: Oil Gravity -API (torr): ie - Form 10-407 Revised 5/2017 CONTINUED ON PAGE 2 RSDMS L v SEP 2 9 20117 Submit O GINIAL only - 28. CORE -DATA Conventional Core(s): Yes ❑ No ❑� ' Sidewall Cores: Yes ❑ No Q If Yes, list formations and intervals cored (MDlrVD, From/To), and summarize lithology and presence of oil, gas or water (submit separate pages with this form, if needed). Submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results per 20 AAC 25.071. 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ❑ No ❑� If yes, list intervals and formations tested, briefly summarizing test results. Permafrost - Top Permafrost - Base Attach separate pages to this form, if needed, and submit detailed test Top of Productive Interval information, including reports, per 20 AAC 25.071. N/A Formation at total depth: R NvFr 31. List of Attachments: Wellbore Schematic, Drilling Reports, As Built Drawing, P&A Photos Information to be attached includes, but is not limited to: summary of daily operations, wellbore schematic, directional or inclination survey, core analysis, paleontological report, production or well test results, per 20 AAC 25.070. 32. 1 hereby certify that the foregoing is true and correct to the best of my knowledge. Authorized Name: Paul Mazzolini Contact Name: Cody Dinger Authorized Title: Drilling Manager Contact Email: cdingef(aI11ICOrp.com Contact Phone: 777.8389 Authorized - 'Q/'Z Signature: Q /z 5 Date: / ZQ f 1 V1 INSTRUCTIONS General: This form and the required attachments provide a complete and concise record for each well drilled in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. All laboratory analytical reports regarding samples or tests from a well must be submitted to the AOGCC, no matter when the analyses are conducted. Item 1 a: Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 1b: Well Class - Service wells: Gas Injection, Water Injection, Water -Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Item 4b: TPI (Top of Producing Interval). Item 9: The Kelly Bushing, Ground Level, and Base Flange elevations in feet above Mean Sea Level. Use same as reference for depth measurements given in other spaces on this farm and in any attachments. Item 15: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 19: Report the Division of Oil & Gas / Division of Mining Land and Water: Plan of Operations (LO/Region YY -123), Land Use Permit (LAS 12345), and/or Easement (ADL 123456) number. Item 20: Report measured depth and true vertical thickness of permafrost. Provide MD and TVD for the top and base of permafrost in Box 29. Item 22: Review the reporting requirements of 20 AAC 25.071 and, pursuant to AS 31.05.030, submit all electronic data and printed logs within 90 days of completion, suspension, or abandonment, whichever occurs first. Item 23: Attached supplemental records should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 28: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Pursuant to 20 AAC 25.071, submit detailed descriptions, core chips, photographs, and all subsequent laboratory analytical results, including, but not limited to: porosity, permeability, Fluid saturation, fluid composition, Fluid fluorescence, vitrinite reflectance, geochemical, or paleontology. Item 30: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Item 31: Pursuant to 20 AAC 25.070, attach to this form: well schematic diagram, summary of daily well operations, directional or inclination survey, and other tests as required including, but not limited to: core analysis, paleontological report, production or well test results. Form 10-407 Revised 5/2017 Submit ORIGINAL Only Location Anchor Point WellSeaview 6 PTD: 217-112 Hilnvp Alaska. LLf Wellbore Schematic API: 50-231-20058-00-00 6-5/8,, 6" Hole 4,) Casing Detail Size Type Wt Grade Conn. ID Top Btrn 6-5/8" Surf Csg 17 A -53B Weld 6.125" 20' 220' Drilling Info it s' o Hole Section Casing 6' 6 TD = 480'/ TVD = 480' 4186 Updated by CJD 09/25/2017 Hilcorp Energy Company Composite Report Well Name: Stratigraphic Test Wells Field: Ninilchik County/State: , Alaska (LAT/LONG): avation (RKB): API M Spud Date: Job Name: 1741287 Seaview 6 Contractor AFE #: 1741287 AFE $: In 9/1/2017 MIRU Kraxberger drilling. Spot cuttings tank. ' truck. Post permits and well sign.; Drill and drive 6-5/8" casing to 180'. SDFN. 9/2/2017 MIRU pipe truck. Drive 6-5/8" casing 180'to 220' Drill 6" hole F/ 220' to 480' TD.;POOH, RDMO location. 9/4/2017 MIRU Pollard Eline. PU GR and CBL tools, tag @ 436'. Log well, RDMO. 9/12/2017 MIRU Kraxberger drilling. Spot rig over well and pipe truck.;Pick up pipe cutter and RIH on 20' of drill pipe. Pressure up on cutter and rotate, good indication of cut. POOH, inspect cutting tool. Good. Cut @ 22'.;PU 24 joints of 1" tubing and RIH. Tag bottom and begin mixing and pumping grout. Pump 40 sx of Bentonite Grout, pull 5 jts every 8 sx pumped. Good returns to surface.;LD all tubing and put back on truck. Pull cut casing joint and lay down. Clean up site. Well P&A'd. RDMO. In -BUILT: SEAVIEW 6 NOTES: 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. 2. AS—BUILT SURVEY CONDUCTED SEPTEMBER 18, 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G12B) GROUND ELEVATION OF SEAVIEW 6 = 162.12' LEGEND: OQ AS—BUILT WELL LOCATION, NO CASING VISIBLE AS -BUILT SEAVIEW 6: LOCATED WITHIN SECTION 9. T5S, R15W, SM, AK SPCS NAD27 AK Z4N: LAT= 59'45'34.82669"N LONG= 151.50'41.12983"W N= 2,106,618.71' E= 159,882.53' OWNER: KENAI PENINSULA BOROUGH 0 100 200 FEET =RnSm-.� SCALE 2 VICINITY MAP: 1" = 1 Mile TRACT 24 tP TRACT 18 Tp MEADOW VIEW ESTATES p TRACT 23 Q TRACT 19 T N F TZ U Q Q TRACT 22 FP SEAVIEW 6 • MEADOW VIEW ESTATES II TRACT 5 pO �O 0J �P TRACT 6 OF A/ SURVEYOR'S CERTIFICATE: 1 HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE Co.. -LAND SURVEYING IN EXHIBIT REPRESENTS THE SURVEY MADE L BY K ME OR UNDER MY DIRECT A AND THAT THIS LT * 49TH / */� SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE "•'•"���'"' / BEST OF MY KNOWLEDGE. P :. MICHAEL R. LS -11794 �I1;PROfESSIONP��PN�+ � R RECON, LLC "I Old 481 W. RECON CIR. �(7 � PALMER, AK 99645 SHEET: 1 OF 40. I AV I T I T ,I\- +4 Y r v. �• � ��� �. � �� � -�,s �� ��y �C' c' L��T - r'�''�`� .z is "•S��- �� AS gA.Fa _,i C� `cq �r�r-"i�.1•w�• Vr'.my� fes- .".'� ,� °"-�. a.•;ci��,5'S� Y.�;y-,rem �` � rP.�r�^4 ��y'` �" 1.-.-: _'�' �, '•4_^ ���"nE'� -rr. ,�*,!e ..' � s ,, vcp 40 _ _ r i I ��. �'���'a s •i' lam+. 4 4 ~ ~ ^ , .l Y'_�'a� %f �. `.,ry c; -moi,. � e..e.C- � �� � _ ^n a+3"•', t' �t� �'.� r 1 �,i �'� >°r- � - "` ti. -„Y ^. } - "y x�^ 1�P4 . i" YI�V \ 1' , .,4yi .s,' i� ♦ ': epi 4� ..SAL -a 4p, •2litir y�r:•. �w L v :� �`� � .�.a�,�"�� � r :'.�'�'•. Ire % C� ^.:� t/ .;.� �� +. -�.•'� t.. a < i ..;tgra.''+`jj< � syr �� .. �"� � �•: Y r• ae '�� 1t.. •� :✓ M -...: r"6"`.T.r � ? Y Si i• � )� � ti vA � � � e )� 1e 1 e ^�l�i / �y'���.+�5d ������ $r �a w, �r � f F ' "�_. � • s ��q'y' 3 �w� �� � .. f/tR. ;�r'' ,2� Y - � Ire' . .�v�� .�" .�- }^ ��.y ♦ .�rl., R. a. .r � .'!" Y �' t .. ��Si Y t � 1..1 ��• �,'�'� h`� �, �•e +, �.+ �•��R#r��y � � s- r �.-�•c!�'r C, -M" F -,.f �.r � s � • --. w. .� ' i ,Tr �I, � {: � !� \��:r .,,�}�' /���'y.� � .. - r.� V / .•+�. _h ���,\ _� ._ RSA ��,: y.. ^►. '.r �- 'off '�+S�..Sf._- -. ...'� � .. -� � : �. ` •fir �-+, : ' < t�s T'"���'...,p �ii-7 :� yam. - DATE 09/25/2017 Seth Nolan GeoTech II RECEIVED OCT 17 1017 AOGCC Hilcorp Alaska, LLC 3800 Centerpoint Drive Anchorage, AK 99503 Tele: 907 777-8308 Fax: 907 777-8510 E-mail: snolan@hilcorp.com To: Alaska Oil & Gas Conservation Commission Makana Bender Natural Resource Technician 333 W 7th Ave Ste 100 Anchorage, AK 99501 DATA TRANSMITTA CD in 217-107 Log prints and data Prints: Seaview 1: GR -CCL 2" MD, Lithology Log 2"/5" MD 21 7 1 0 7 2 8 ®88® 6 9 8 Seaview 2: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 1 0 8 2 6 9 9 Seaview 3: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 1 0 9 2 8 7 0 0 Seaview 4: GR -CCL 2" MD, Lithology Log 2"/5" MD 2 1 7 1 10 2 8 7 0 1 Seaview 5: GR -CCL 2" MD, Lithology Log 2'y5" MD 2 1 7 1 1 1 28 7 0 2 Seaview 6: GR -CCL 2" MD, Lithology Log 2"y5" MD 21 7 1 12 2 8 7 0 3 Seaview 7: GR -CCL 2" MD, Lithology Log 2"/5" MD 21 7 1 1 3 2 8 7 0 4 CD: 1 Electric logs . Seaview 1 9/25/2017 2:28 PM File folder . Seaview 2 9/25/2017 2:28 PM He folder . Seaview 3 9/25/2017 2:29 PM File folder . Seaview 4 9/25/2017 2:29 PM File folder Seaview 5 9/25/2017 2:29 PM File folder . Seaview 6 9/25/2017 2:29 PM File folder . Seaview 7 9/25/2017 2:29 PM File folder Please include current contact information if different from above. Lo'.:� , \ot3;,,U r7 :J ✓. G3 NUER Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to 907 777.8510 Received By; „ _ i . 11 1 Date: 35 THE STATE °f1�LASKA GOVERNOR BILL WALKER Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Exploratory Field, Exploratory Pool, Seaview 6 Hilcorp Alaska, LLC Permit to Drill Number: 217-112 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.00gcc.olaska.gov Surface Location: 2234' FNL, 1763' FWL, SEC. 9, T5S, R15W, SM, AK Bottomhole Location: 2234' FNL, 1763' FWL, SEC. 9, T5S, R15W, SM, AK Dear Mr. Mazzolini: Enclosed is the approved application for permit to drill the above referenced stratigraphic test. Hilcorp Alaska, LLC (Hilcorp) requests the following variances: 1. Hilcorp's request to waive wellbore surveys is APPROVED. The well depth is very shallow (600 feet) and intent is to drill vertically. 2. Hilcorp's request to use standard water well drilling equipment that is commonly used in the area is APPROVED under 20 AAC 25.037. The drilling rig will also use air instead of drilling mud to remove cuttings which is also common. Due to shallow depth and nature of the area conventional well control equipment is not needed or practical. Rig will use a rotating head and large hose to direct returns to a tank. 3. Use of a diverter is WAIVED due to the shallow depth of the wellbore. As stated above a rotating head system will be used as an alternate method of directing returns safely during drilling operations. 4. Requirement under 20 AAC 25.120 to place a well abandonment marker on the casing stub is WAIVED. 5. Hilcorp's request to use grout instead of cement to P&A wells is APPROVED. Grout is commonly used to abandon water wells. Additional Conditions of Approval: 1. Portable gas detection monitor (LEL) to be used on site. (minimum of 2 handheld meters) 2. Well may not be drilled any deeper than 600feet without written approval from the AOGCC. 3. Photo document P&A operations: including casing cutoff, grout top and site clearance. 4. Transfer of wellbore to landowner for use as water well must be approved by AOGCC as per 20 AAC 25.140 Permit to Drill: 217-112 Page 2 of 2 Dry ditch sample sets submitted to the AOGCC must be in no greater than 30' sample intervals. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by Hilcorp in the attached application, the following well logs are also required for this well: Lithology log required in lieu of mud log. Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Photos and documentation from utility locates that demonstrate successful clearance of the drill site must be provided to the AOGCC prior to spudding of Seaview 6. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Ca� Foerster Commissioner DATED this _ day of August, 2017. STATE OF ALASKA AL/,or.A OIL AND GAS CONSERVATION COMMIb. ,ON PERMIT TO DRILL 90 AA(' 25.005 1a. Type of Work: Drill ❑+ • Lateral ❑ Redrill ❑ Reentry ❑ 1b. Proposed Well Class: Exploratory -Gas ❑ Stratigraphic Test E ' Development -Oil ❑ Exploratory - Oil ❑ Development - Gas ❑ Service - WAG ❑ Service - Disp ❑ Service- Winj ❑ Single Zone ❑ Service - Supply ❑ Multiple Zone ❑ 1c. Specify if well is proposed for: Coalbed Gas ❑ Gas Hydrates ❑ Geothermal ❑ Shale Gas ❑ 2. Operator Name: Hilcorp Alaska, LLC 5. Bond: Blanket 0 , Single Well ❑ Bond No. 022035244 11. Well Name and Number: Seaview 6 3. Address: 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503 6. Proposed Depth: MD: 600' • TVD: 600' 12. Field/Pool(s): N/A 4a. Location of Well (Governmental Section): Surface: 2234' FNL, 1763' FWL, Sec 9, T5S, RI 5W, SM, AK Top of Productive Horizon: Total Deoth: 2234' FNL, 1763' FWL, Sec 9, T5S, Fit 5W, SM, AK 7. Property Designation: Surface: KPB ROW/Subsurface: Private Leased 8. DNR Approval Number: NA 13. Approximate Spud Date: 8/3/2017 9. Acres in PfoDertv: NA Platted 14. Distance to Nearest Property: 25' 4b. Location of Well (State Base Plane Coordinates - NAD 27): Surface: x- 159,883.04' y- 2,108,818.64' ' Zone -4 10. KB Elevation above MSL (ft): 166 • GL / BF Elevation above MSL (ft): 162 • 15. Distance to Nearest Well Open to Same Pool: N/A 16. Deviated wells: Kickoff depth: N/A feet Maximum Hole Angle: N/A degrees 17. Maximum Potential Pressures in psig (see 20 AAC 25.035) Downhole: 0-15 Surface: 0 18. Casing Program: Specifications Top - Setting Depth - Bottom Cement Quantity, c.f. or sacks Hole Casing Weight Grade I Coupling Length MD TVD MD TVD (including stage data) 6" 65/8" 17 A-53 Weld 150' Surface Surface 150' 150' 19. PRESENT WELL CONDITION SUMMARY (To be completed for Redrill and Re -Entry Operations) Total Depth MD (ft): Total Depth TVD (ft): Plugs (measured): Effect. Depth MD (ft): Effect. Depth TVD (ft): Junk (measured): Casing Length Size Cement Volume MD TVD Conductor/Structural Surface Intermediate Production W III Liner Perforation Depth MD (ft): Perforation Depth TVD (ft): Hydraulic Fracture planned? Yes ❑ No 20. Attachments: Property Plat E] BOP Sketch ❑ Drilling Program Time v. Depth Plot ❑ Shallow Hazard Analysis[] Divener Sketch ❑ Seabed Report ❑ Drilling Fluid Program ❑ 20 AAC 25.050 requirements❑ 21. Verbal Approval: Commission Representative: Date 22. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Contact Name: Paul Mazzolini Authorized Name: Paul Mazzolini Contact Email: Ornia olini0hilcorp.Corn Authorized Title: Drilling Manager Contact Phone: 777-8369 Authorized Signature: !'' ` Date: /3/2.0l7 Commission Use Only Permit to Drill -7 9 ' API Number: ��nr Permit Approval See cover letter for other Number: 2�7 ��L� 50-�3 j'4wJ •- Date: requirements. Conditions of approval : If box is checked, well may not be used to explore for, test, or produce coalbed ethane, gas hydrates, or gas contained in shales: Ff Other: ,,/ // / // Samples sures: Yes [Nod log req'd: Yes[] No ,.rJ F•��T.Y HzS measures: as ❑ Nov,If�G/Directional svy sures: Yes❑ No [��� Spacing exception mq'd: Yes ❑ No;/ Inclination -only svy req'd: Yes❑ No(� l- /'� Post initial injection MIT sures: Yes❑ No APPROVED BY Approved by: COMMISSIONER THE COMMISSION Datee—n _ �f /> 7 g L3• r7 Submit Form and Form 10-401 Revised 512017 I IGINAL th5 from the date of approval per 20 AAC 25.005(8) Attachments in Duplicate 07/13/2017 Paul Mazzolini Drilling Manager Commissioner Alaska Oil & Gas Conservation Commission 333 W. 71h Avenue Anchorage, Alaska 99501 Re: Kenai Peninsula Shallow Stratigraphic Test Well Program Seaview 6 Dear Commissioner, Hilcorp Alaska, LLC P.O. Box 244027 Anchorage, AK 99524-4027 Tel 907 777 8369 Email pmazzolini@hilcorp.com RECEIVED JUL 14 2017 ACX;G(CC Enclosed for review and approval is the Permit to Drill for the Seaview 6 shallow stratigraphic test well located near Ninilchik, AK. Seaview 6 is one of the remaining 10 - 14 shallow vertical stratigraphic test wells to be drilled and evaluated in the area between Ninilchik and Anchor Point on the southern Kenai Peninsula. The plan is to begin drilling operations on or about August 3, 2017. The goal of the shallow stratigraphic test well program is to penetrate 1-3 shallow coal seams and evaluate this shallow wellbore with gamma ray and resistivity logs. A dipmeter log could also be run if requested by Geology to aid in the evaluation of the stratigraphic test well. Hilcorp will utilize a very experienced water well contractor on the Kenai Peninsula that will utilize best practices for the drilling of the shallow stratigraphic test wells. Hilcorp Alaska, LLC requests a variance from 20 AAC 25.035 (d) for utilizing diverter while drilling the shallow wells required for the stratigraphic test well program. The basis for this variance is information gathered by Hilcorp Sr. Geologist, David Buthman containing the shallowest gas shows and well test information from offset wells in the three areas to be targeted by the stratigraphic well test program. Hilcorp Alaska, LLC also requests a variance from 20 AAC 25.050 for obtaining wellbore surveys due to the very shallow wells being drilled for the stratigraphic test program.\A sign will be posted at each drilling location with the well information required by AOGCC. s _ v 1� tr u�� I'd> 22C..j'7 The shallow stratigraphic test wells will be drilled with air and the cuttings will be captured in a tank a§ per AAC 20 25.047. Samples of these cuttings will be obtained every 30' for analysis. The cuttings will be sent to Kenai Gas Field for disposal at G&I or to the Kenai Peninsula Borough landfill (authorization to do so has been obtained). Once drilled and evaluated the wells will be plugged utilizing grout and cut off 10' below GL to complete the P&A. It is possible that some of the landowners may want to complete wells as a water source, in which case 20 AAC 25.140 requirements will be followed. Approvals from surface landowners have been obtained prior to surveying, staking and preparation of the site for each stratigraphic test well. These approvals are included as an attachment with each PTD application. Care has been taken to place drilling locations near access roads and to minimize location site preparation by utilizing a 35' x ,,.-i` 70' footprint. fid If you have any questions, please don't hesitate to contact me at 777-8369 (office) or 317-1275 (mobile). S' erely, Paul Mazzolini Drilling Manager Hilcorp Alaska, LLC Page 1 of 1 Location Anchor Point PROPOSED Well Seaview 6 PTD: TBD Flwrp Itc WELLBORE API: TBD 6-5/8- 6" Hole TD =600'/TVD = 600' Casing Detail Size Type Wt Grade Conn. ID Top Btm 6-5/8" Surf Csg 17 A-53 Weld 6" Surf 150' Drilling Info Updated by CJD 06/9/2017 ./ Hole Section Casing 6-5/8" 6" x 0 H Updated by CJD 06/9/2017 ./ Shallow Stratigraphic Test Well Plan Seaview 6 1. MIRU truck mounted drilling unit with support equipment onto 35' x 70' location. 2. Drive 6 5/8" casing through upper 100'-150' due to unstable hole conditions . 3. Drill 6" vertical hole until one of 3 distinct coal seams is penetrated 500'- 600'. Base case is to air drill hole to TD. a. Samples to be gathered every 30' for geological review. b. A lithology log will be generated. 4. Once 6" hole drilled to TD, fill with freshwater or viscosified water to keep hole full for logging, approx. 21 bbls for gauge hole to 600' (.035 bbl/ft). 5. Remove cuttings from cuttings tank and haul to G&I in Kenai Gas Field for disposal or to Kenai Borough Landfill. (21 bbls /hole) 6. RDMO truck mounted drilling unit and support equipment. Move to next strat test well location. 7. Rig up logging unit and log 6" hole with Gamma / Resistivity. Geologist may request a dipmeter be run. 8. Rig down logging unit and move to next strat well. 9. MIRU truck mounted drilling unit with support equipment. 10. RIH with tubing and spot grout/ bentonite plug from TD to surface. 11. Set surface grout / bentonite plug within 10' of surface, cut and remove 10' of 6 5/8" casing. Fill in hole. No welded cap on 6 5/8" casing as per waiver from AOGCC. 12. RDMO truck mounted drilling unit and support equipment. 13. No welded cap is required on 6-5/8" surface casing per waiver from AOGCC. 14. Portable gas detectors will be placed at the Drillers console and at the cuttings tank. 15. A lithology log will be generated and submitted to the AOGCC. ,/ Stratigraphic Test Well Program Project Description The Hilcorp Alaska, LLC stratigraphic test well program will be performed from June -December of 2017, and possibly into Q1 of 2018 depending on the ability to build packed snow and ice roads into the locations located in swampy areas. Hilcorp anticipates drilling 16-20 stratigraphic test wells, each up to 600' deep that will be drilled and evaluated on the southern end of the Kenai. Peninsula between Ninilchik and Anchor Point. The areas have been named Seaview (near Anchor Point), Pearl (near Ninilchik) and Deep Creek (for the inland locations about 5 miles south of the Happy Valley gas field). These stratigraphic test wells intend to penetrate 1-3 shallow coal seams within 500'-600' from surface. Once these coal seams have been penetrated each stratigraphic hole will.be filled with freshwater and logged with gamma ray and resistivity tools on a single run. Hilcorp geologists may determine that a dipmeter log also be obtained in some of the stratigraphic test wells. The chosen contractor is very experienced in drilling wells within this shallow hole section on the Kenai Peninsula and will use air drilling to drill the stratigraphic test wells to depth. Best practices will be utilized to drill and abandon these shallow stratigraphic test wells. Casing will be required in the top. 100'— 150' of hole due to formation instability issues and will be drilled into place. The cuttings generated from the air drilling operations will be captured in a tank and samples will be obtained approximately every 30'. These cuttings will be hauled to the G&I Facility in the Kenai Gas Field for disposal or taken to the Kenai Peninsula Borough landfill. After each test well has been evaluated, it will be plugged with grout/bentonite mixture as required to meet regulatory requirements. Once a grout plug has been set to within 10' of surface, the casing will be cut off and the hole buried to complete the P&A of each stratigraphic test well. Once all drilling and data evaluation work has been completed, all locations will be cleaned up to the individual land owners satisfaction. Permission will be obtained from each landowner for all activities on their property to include surveying, site preparation, drilling activities, and data collection/evaluation of each stratigraphic test well. The stratigraphic test well locations were chosen to minimize impact to the surface owners. The area required for each stratigraphic test well is approximately 35'.x 70'. Should soil conditions require, rig mats will be set in place to provide the drill rig unit and support equipment.a firm and stable work surface. The locations have been placed near established roads and 'right of ways to minimize the length of any additionally needed access roads. Four locations in the Deep Creek area will require packed snow and ice roads to access swampy areas so that drilling and evaluation, work will be completed in Q4 2017 or Q12018, once the ground has sufficiently frozen. Work for the Q4 2017 / Q1 2018 stratigraphic test wells will be completed in the same manner as those drilled and evaluated during the summer. OONROEMMAL 8 May 2017 Alaska Oil and Gas Commission ATTN: Steve Davies Hilcorp Alaska, LLC ATTN: Paul Mazzolini RE: Shallow Stratigraphic Test Well Program Geologic Hazard Analysis Hilcorp Alaska, LLC has analyzed nearby oil and gas test wells, water wells, nearby gas producing wells, and seismic data on the southern Kenai Peninsula and do not anticipate any shallow gas at depths between 500' and 850' for the Stratigraphic Test Well Program. Therefore a waiver is requested for utilizing a diverter that is typical on deeper drilling oil and gas operations. The information that follows was utilized to determine the need for the diverter to drill the shallow stratigraphic test wells. Hilcorp Alaska, LLC is planning on drilling shallow stratigraphic test wells in three areas: Ninilchik, Deep Creek Unit, and Anchor Point. For each of these areas, geotechnical evidence indicates no shallow hazards. M. Guhl 10/29/2019 HALUBURTON TOOL STRING DIAGRAM: GTET-XRMI-ACRT Description overhodyDeacriptfnn O.D. Diagram Sensors @ Delays Length p`Leted ngth 60.05 ft 0 2.310 in _0 Fishing Neck @ 59.18 ft RWCH-12345678 03.625 in -1116.25E Load Cell @ 56.38 it 135.00 lbs 13H Temperature @ 55.81 it Weak Point 10000 Ibs- 12345678 00.010 In' 0 0.01 lbs 53.81 ft #_ Z-Accelerometer @ 53.36 ft GTET-12345678 03.625 in _1 B.52 ft 165.00 lbs % GammaRay@47.75it 45.29 it SP Ring-12345678 0 3.625 in* SP C�,, 1.86 ft 0.00 lbs 0.58 ft Cabbage Head- 03.625 in 0'E 12345678 05.000 in 10.00 lbs 0.00 it Serial Welght Length A`cuated $�' WwnoNa Tool Name Number (lbs) (ft) LLength dH Itpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 53.81 300.00 WP10K Weak Point 1b0001bs 12345678 0.01 0.01 54.61 300.00 GTET Gamma Telemetry Tool 12345678 165.00 8.52 45.29 60.00 XRMI XRMI Navigation- Insite 12345678 290.00 14.30 30.99 30.00 XRMI-I XRMI Imager -Insite 12345678 206.00 11.16 19.83 36.00 ACRt Amay Compensated True Resistivity Instrument Section 12345678 50.00 5.03 14.80 120.00 ACRt Array Compensated True Resistivity Sonde Section 12345678 200.00 14.22 0.58 120.00 gp SP Ring 12345678 0.00 0.25 ' 1.86 300.00 RSOF Regal Standoff 6.75in 11111111 _ 20.00 0.52 10:86 300.60 CRHD Cabbage Head 12345678 10.00 0.58 0.00 300.00 1,076.01 60.06 Total ' Not included in Total Length and Length Accumulation. Date: 03-May-1717:02:12 Data: GTET-XRMI-ACRT HALLIBURTON - TOOL STRING DIAGRAM: GTET-XRMI Description oaerhady0e:crW-n O.D. Diagram Sensors( o] Delays Length Accumulated cumula 40.56 It 02.310 in _-� �- Fishing Neck@39,68ft RWCH42345678 135.00 lbs 03.6251.6.25 Load Cell @ 36.88 ft It BHTemperatura@36.31ft Weak Point 100001bs- 12345678 0 0.0101n• 0.01 lbs 34.31 ft � 2-Accelerometer@33.e6ft GTET-12345678 0 3.625 in 5.52 ft 165.00]be GammaRay@28.25ft 9.5.]9 ft XRMI4 Instrument- 12345678 ' 04.500 in .,,� 14.3011 290.00 ]be 11..9 H 05.000 in XRMH Mandrel- 12345678 04400 in -► 11.16ft 206.00 Ibs Pads 2,4, 6@3.10 ft Pads1,3,5@2.87ft . 0:33 it Bull Nose -12345678 02.750 In -� - 0.33tt 5.00 Me 0.00 it Serial Weight Length Aoca nnuletad MSP -. . Mnemanlo Too[ Name Number (lbs) (ft) Lened (to(rpm) RWCH Releasable Wireline Cable Head 12345678 135.00 6.25 34.31 300.00 WP10K Weak Point 10000 Its 12345678 0.01 0.01 35.11 300.00 GTET Gamma Telemetry Tool 12345678 165.00 6.52 25.79 60.00 XRMI XRMI Navigation -- insite 12345678 290.00 14.30 '11,49 30.00 XRMI-I XRMI Imager-IOsite 12345678 206.60 1,1.16 0.33 3000 BLNS Buil Nose 12345678 5.00 0.53 0.00 300.00 Total 801.01 40.56 `Not included in Total Length and Length Accumulation. Data: GTET-XRMI Date: 03 -May -171648:07 t O O O N 00 x 0 �r bn �L O cco O F- o `x° Ln � m E k x o o0 x � V N M .L x U L Qi Q 0 - m STAKED NOTES: 1. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. 2. AS—STAKED SURVEY CONDUCTED MAY 23, 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G128) ELEVATION OF SEAVIEW 6 = 162.04' 1 LEGEND: 0 SET BRASS CAP MONUMENT ON 5/8" X 30" REBAR AS—STAKED SEAMEW 6: LOCATED WITHIN SECTION 9, TSS, R15W, SM, AK SPCS NAD27 AK Z4N: LAT= 59'45'34.82618"N ' LONG= 151'50'41.11983"W N= 2,108,818.64' E= 159,883.04' - SPCS NAD83 AK Z4N: LAT= 5945'32.62208"N ' LONG= 151'50'48.90305"W . N= 2,108,575.16' E= 1,299,908.13' OWNER: KENAI PENINSULA BOROUGH 0 100 200 FEET SCALE OF•A/-.,k ��P• X111 *: 49 TH '. ...................... 19: MICHAEL R. EWI : e � LS -11794 oir Q 111\I,P dW SSI.0N. Nv 4 North TRACT 24 TRACT 18 MEADOW VIEW ESTATES � TRACT 23 ➢O TRACT 19 � N a TRACT 22 Y � �O SEAVIEW 6 MEADOW VIEW ESTATES II TRACT 5 P4�1 �O 0J TRACT 6 5 SURVEYOR'S CERTIFICATE: I HEREBY CERTIFY THAT I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS—STAKED EXHIBIT REPRESENTS A SURVEY MADE BY ME OR UNDER MY DIRECT SUPERVISION. DIMENSIONS AND OTHER DETAILS ARE CORRECT TO THE BEST OF MY KNOWLEDGE. RECON, LLC RRON�,..�481 W. RECON CIR. PALMER, AK 99645 DATE: 5/30/2017 1 DRAWING: HilcorpDeepAsStaked_2 I SHEET: 1 OF 1 1REV: 0 1 State of Alaska Alaska oa Seaview 6: Nearby Water Wells and Subsurface Water Rights 39edina55teyhenFDaviesl �* Run Query (2) Map Options r r r u s • " . • - � PPPV rna atri Layers V A L r ❑ ❑ ❑ Layer Name r LI LI LI PLSS Section Gdd r © 2 © wells r ❑ ❑ ❑ Surface water Rights r ❑] 2 EJ Subsurface' later Rights r ❑ ❑ ❑Surface Temporary Water Use i r ❑ ❑ ❑Subsurface Temporary WaterU r ❑ ❑ ❑ Reservation of Water '. r ❑ ❑ ❑ Rural Education Attendance AN r ❑ ❑ ❑ Rvdlalouic units - � — usexetl .earns" AM 201919 �3 2 �♦ t r F i I c�OO r i o° Seavjbw 6, 1 i PPPgi a o- 0000 r . .� 7- - _ NI is Kenai Peninsula Bo Seaview 6: Nearby Water Wells and Subsurface Water Rights 41* `� � r . �' �"•"\\�� lr ��`� =�� \�' : `pie y�v V. rig Nt Ntl Ur I OUR ♦ '„ah iR �F Degrees Minutes Seconds ♦ �: 59` 4> 43.0850- N Lim: 151. 50 9.93995" W Q Sign in L Tools a A Davies, Stephen F (DOA) From: Cody Terrell <cterrell@hilcorp.com> Sent: Wednesday, August 23, 2017 2:09 PM To: Davies, Stephen F (DOA) Subject: RE: Seaview 6 Strat Test KPB Permit Attachments: OGL_Angela Hermannes 6-17-16.pdf Please see attached OGL Regards, Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, August 23, 2017 2:00 PM To: Cody Terrell <cterrell@hilcorp.com> Subject: RE: Seaview 6 Strat Test KPB Permit Cody, Could Hilcorp please provide the AOGCC with a signed copy of the agreement with the mineral owner? 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.davies@alaska.zov. From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Tuesday, August 22, 2017 3:26 PM To: Davies, Stephen F (DOA) <steve.davies@alaska.eov> Subject: RE: Seaview 6 Strat Test KPB Permit Steve — Seaview 6 is located on the KPB right-of-way. Hilcorp obtained the surface permit from KPB to drill Seaview 6 (see attachment). The state lease does not extend to this portion of Section 9. The minerals are owned by a private fee owner. Hilcorp has not obtained surface permissions from mineral owners who only have interest in the mineral estate. However, we do have an oil and gas lease with the mineral owner which allows Hilcorp to access the surface estate to conduct oil and gas operations, including exploration activities such as the strat test. However, the surface permission received from KPB should give us the necessary rights to access the right-of-way and perform the work whether we had permission from the mineral owner or not. Please let me know if this is what you were looking for. Regards. Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA)[mailto•steve.davies@alaska.F;ovj Sent: Tuesday, August 22, 2017 2:55 PM To: Cody Terrell <cterrell@hilcorp.com> Subject: RE: Seaview 6 Strat Test KPB Permit Cody, I'm finishing my review of Seaview 6, and I have another question. The well location lies in the northern half of Section 9 (2234' FNL, 1763' FWL). Your email of July 271h states that the subsurface mineral estate underneath the Seabury Road is owned by the State of Alaska, but the well will be located in the northern half of Section 9, and the state oil and gas leases in this section do not extend into that portion of Section 9 (see DNR's Alaska Mapper application screen capture, below). Box 7 of Hilcorp's Permit to Drill application form for Seaview 6 states: "...Subsurface: Private Leased". Could you please provide the private landowner approval for this particular well location. I don't have a copy in the Permit to Drill application file. 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.davies@alaska.gov. 4anm I.w�w t C V From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Monday, August 21, 2017 9:27 AM To: Davies, Stephen F (DOA) <steve davies@alaska.aov> Cc: Cody Dinger <cdinger@hilcorp.com>; Paul Mazzolini <pmazzolini@hilcorp.com> Subject: Seaview 6 Strat Test KPB Permit Steve, See attached KPB permit for Seaview 6 strat test well. Regards, Cody T. Terrell I Landman I Hilcorp Alaska, LLC 0:907-777-8432 1 C: 713-870-4532 1 cterrell@bhilcorp.com 3800 Centerpoint Dr., Suite 1400 1 Anchorage I Alaska 199503 This email may contain confidential and/or privileged information and is intended for the recipient(s) only. In the event you receive this message in error. please notify me and delete the message. 7-/7-//Z__ OIL AND GAS LEASE Paid -Up This Oil and Gas Lease ("Agreement") is made as of j3,t day of )l�___. 2016, ("Effective Date") by and between Angela Celeste Hermannes ("Lessor*'), whose address is 19 Brookshire Dr.. Saint Peters, MO 63376, and Hilcorp Alaska. LLC ("Lessee"). a Delaware limited liability company with offices located at 3800 Centerpoint Drive, Suite 1400. Anchorage, Alaska 99503. 1. GRANT. For and in consideration of the sum of "fen Dollars ($10.00), and other valuable consideration, receipt of which is hereby acknowledged, and of the covenants and agreements herein contained. Lessor does hereby grant, demise. lease, and let unto Lessee the lands described in Exhibit A, with the exclusive rights of conducting geological, geophysical, and other exploratory work for oil, gas, and associated substances, and to]- exploring. orexploring. investigating, prospecting, marketing, drilling and operating wells (including directionally drilled wells) for producing and marketing oil. gas, and associated substances. producing, owning, saving, storing, taking care of. venting, treating and transporting oil, gas, and associated substances therein, drilling and using wells for secondary and tertiary recovery methods, storing oil, gas, and associated substances on or below the surface, and, together with the non-exclusive rights to lay pipe, telephone and power lines, build and maintain roads and equipment, construct power stations, tanks and other facilities and structures, the right to remove all of said oil, gas, and associated substances, or water, or either of them, and the free and uninterrupted right and right-of- way into, through and under the said land at such points and in such manner as may be convenient or necessary for the purpose of conducting all said oil, gas, and associated substances operations on behalf of the lease, pool, or unit. The premises leased hereby being that tract of land with any reversionary rights therein situated in the KENAI PENINSULA BOROUGH, THIRD JUDICIAL DISTRICT, STATE OF ALASKA. See attached Exhibit "A" 2. TERM. Subject to the other provision herein contained, this lease shall be for a term of FIVE (5) years from the effective date and as long thereafter as oil or gas and associated substances is produced in paying quantities from the Leased Premises hereunder, or lands pooled or unitized herewith, or drilling or reworking operations for oil, gas, and associated substances, are conducted thereon as hereina&r provided (`'Extended Term"). OII.. AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 1 3. ROYALTY ON PRODUCTION. 3.1 Royalty Rate. Fxcept for oil, gas. and associated substances used on the Leased Premises for exploration, development and production, or unavoidably lost. the Lessee shall pay to the Lessor as a royalty Twelve and One -Half Percent (12.50%) in amount or value of the oil, gas, and associated substances saved, removed, or sold from the Leased Premises. 3.2 Valuation. For the purpose of computing royalties due under this lease. the value of royalty oil, gas, or associated substances shall be the highest of. (A) The field price received by the Lessee for the oil, gas, or associated substances; (B) The Lessee's posted price in the field or area for the oil, gas, or associated substances; or (C) The arithmetic average of the three highest posted prices in the same field or area for oil of like grade and gravity, gas of like kind and quality. or associated substances of like kind and quality at the time the oil. gas. or associated substances are sold or removed from the Leases Premises or pooled or unit area; if there are less than three prices posted, the arithmetic average will be calculated using the lesser number of prices posted in the field or area. 3.3 Field Price. (A) If oil, gas, or associated substances are sold away from the Leased Premises or pooled or unit area, the term "field price" in subparagraph (1) above will be the cash value of all consideration received by the Lessee or other producer from the purchaser of the oil, gas, or associated substances, less the reasonable costs of transportation away from the Leased Premises or pooled or unit area to the point of sale. (B) In the event the Lessee does not sell in an arms' length transaction the oil. gas, or associated substances. the term "field price" in subparagraphs (b) and (c) above will mean the value utilized by the Lessee to pay royalty to the State for similar dispositions from State leases in the same field or area, minus reasonable costs of transportation away from the Leased Premises or pooled or unit area to the point of sale or other disposition. 3.4 Deductions. In computing the royalty, Lessee may deduct the costs of heating. sweetening, gathering, transporting. dehydrating, compressing, extracting, processing, manufacturing or any other postproduction cost. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 2 3.5 Shut -In Royalties. Should Lessee complete a well on the Leased Premises capable of producing in commercial quantities which is shut-in from a tack of market or otherwise. or gas is not being used or sold therefrom. then Lessee within one hundred twenty (120) days after the date on which said well is shut-in, shall pay Lessor the sum of two dollars ($2.00) per acre and shall thereafter pay as shut-in royalty to Lessor annually the sum of two dollars ($2.00) per acre until said well is placed on production. It is understood that this payment shall hold the entire Leased Premises. 3.6 Gas Extraction. In the event Lessee shall extract in a plant other hydrocarbons from the gas produced from the Leased Premises, Lessee shall pay Lessor as royalty Forty Percent (40%) of the Lessor's royalty share of the value, as hereinabove defined, of the other hydrocarbons credited to the Leased Premises from the gas so treated. 4. SUCCESSORS AND ASSIGNS AND CHANGE OF OWNERSHIP. The rights and estate of any party hereto may be assigned from time to time in whole of in part and as to any mineral or horizon. All of the covenants, obligations, and considerations of this lease shall extend to and be binding upon the parties hereto, their heirs, successors, assigns and successive assigns. No change or division in ownership of said land, royalties, or other monies, or any part thereof. howsoever affected. shall increase the obligations or diminish the rights of the Lessee. Notwithstanding any other actual or constructive knowledge or notice thereof of or to Lessee, its successors or assigns, no change or division in ownership of the Leased Premises or of the royalties, or other monies, or the right to receive the same, howsoever affected, shall be binding upon the Lessee of this lease until forty-five (45) days after there has been furnished to such Lessee at his or its principal place of business by Lessor or Lessor's heirs. successors, or assigns, notice of such change or division, supported by either originals or duly certified copies of the instruments which have been properly filed for record and which evidence such change or division, and of such court records and proceedings, transcripts, or other documents as shall be necessary in the opinion of such Lessee to establish the validity of such change of division. 5. LESSER OR GREATER INTEREST PROVISION. If Lessor owns a lesser interest in the oil, gas, and associated substances underlying the Leased Premises than the entire undivided fee simple estate, then the rentals and royalties hereunder shall be paid to Lessor only in the proportion which Lessor's interest bears to the whole and undivided fee; however, if title to any interest in the Leased Premises Should become owned by or revert to Lessor, or his heirs, devisees, executors, administrators or his or their successors in interest, this lease shall cover such interest or reversion. If the true acreage of the Leased Premises shall be found to be less than the number of acres above recited, the rental and royalty hereunder shall be reduced proportionately. and Lessor hereby releases Lessee from payment of rental or royalty upon any acreage in excess of the true acreage of the Leased Premises. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 3 6. FORCE MAJEURE. 6.1 Extension of Term. If any operation permitted or required hereunder. or the performance by Lessee of any covenant, agreement or requirements hereof is delayed or interrupted directly or indirectly by any past or future acts, orders, regulations or requirements of the Government of'the United States or any state or other governmental body. or any agency. officer, representative or authority of any of them, or by the elements. tire, storm, flood, volcano eruptions and flows resulting therefrom or because of delay or inability to secure materials in the open market, acts of war or conditions attributable to war or on account of any other similar or dissimilar causes beyond the control of Lessee, the period of such delay or interruption shall not be counted against the Lessee, and the Primary Term and Extended Tenn of this lease shall automatically be extended so long as the cause or causes for such delays or interruptions continue and such extended term shall constitute and shall be considered for the purposes of this lease as a part of the primary term hereof. 6.2 Damages. The Lessee shall not be liable to Lessor in damages for failure to perform any operation permitted, or required hereunder or to comply with any covenant, agreement or requirement hereunder during the time Lessee is prevented by acts beyond its control from complying with such covenants, agreements or requirements, except for the payments provided herein and in Section 3 hereof. 7. DEFAULT AND TERMINATION RIGHTS. 7.1 Failure to Perform. This lease shall be subject to all valid federal, state and local laws, orders. rules and regulations and shall never be forfeited or terminated for failure of Lessee to perform in whole or in part any of its expressed or implied covenants, conditions or obligations until it shall have been first finally judicially determined that such failure exists, and Lessee shall have been given a reasonable time after such final determination within which to comply with any such covenants, conditions or obligations and shall have failed to comply. 7.2 Retention. In the event Lessee's rights hereunder shall terminate or be forfeited for any cause, Lessee shall be entitled to designate and retain the following acreage around each well producing, being worked on, or drilling: (A) if drilling or producing units have not been established for the field in which such acreage is located by order of any State or Governmental Authority, Lessee shall have the right to designate and retain six hundred and forty (640) acres around each well producing oil, gas, and associated substances, each well being worked on, and each well drilling for oil, gas, and associated substances, each such tract to be in as nearly the form of a square as possible with the %yell in as near the center thereof as practicable. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Pige 4 (B) If drilling or producing units have been established by order of any State or Governmental Authority, Lessee shall be entitled to retain around each well so much of the Leased Premises as is included under such order in the unit on which such well is located. 7.3 Cessation and Recommencement of Operations. In the event lessee shall cease to conduct continuous operations on the Leased Premises, the rights of Lessee hereunder shall terminate and be forfeited upon 180 days' written notice by Lessor, unless Lessee shall have resumed diligent operations within such 180 days. 8. LESSEE USE OF PREMISES. 8.1 Roads. Should Lessee utilize any roads owned by Lessor on the Leased Premises. Lessee shall utilize such roads in a prudent manner and so as not to interfere with Lessor's use thereof and Lessee shall. pay all costs of any improvements thereto for its usage. said improvements requiring Lessor's written consent, and Lessee shall maintain said roads in good condition during such usage. 8.2 Damages and Repairs. Lessee assumes for itself, its agents and invitees, the liability for prompt payment to Lessor for any and all damages to Lessor's property, equipment, timber, water -wells and other improvements located on the Leased Premises which may be caused by the operations of Lessee, its agents and invitees on said lands. Lessee will repair all damage to the surface of the Leased Premises caused by the operations of itself, its agents and invitees, and Lessee shall restore the Leased Premises to a condition as near as reasonably practicable to its former condition. Lessee shall make a good faith effort to comply with Lessor's written request to bury a pipeline to a specified depth it' it determines same to be reasonable. 9. WARRANTY OF TITLE. 9.1 Warranty. Lessor hereby warrants and agrees to defend the title to the Leased Premises described and agrees that the Lessee, at its option, may pay and discharge in whole or in part any taxes, mortgages, or other liens existing, levied, or assessed on or against the Leased Premises and, in event it exercises such option, it shall be subrogated to the tights of any holder or holders thereof and may reimburse itself by applying to the discharge of any such mortgage, tax or other lien, any royalty occurring hereunder. Lessor warrants specifically only such title to the oil, gas, and associated substances withdrawn from the Leased Premises as it may have, if any. Lessee's sole and exclusive remedy shall be for any monies. royalties or other things of value received by Lessor for or on account of such oil, gas, and associated substances the title to which shall have failed. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 5 9.2 Third Party Claims. In the event oil. gas, and associated substances under the Leased Premises. or any part thereof, or any interest in such oil, gas and associated substances or in the royalties payable hereunder with respect thereto, is claimed by others, Lessee shall have the right to withhold without liability for interest thereon. payment of such royalties to the extent of such claim, or to deposit in escrow such royalties in a court of competent jurisdiction until final determination of such claim; provided. however, that Lessor shall have the right, in case of anv such adverse claim and the withholding of such royalties, to payment of same to it upon furnishing a bond or other security satisfactory to Lessee as indemnity against such claim until finally determined. 10. TERMINATION PROVISIONS. At such time as this lease or any portion thereof expires or is terminated, for any reason whatsoever, Lessee agrees to furnish Lessor. within sixty (60) days of request, a Quitclaim Deed or Release covering this lease or any portion of the Leased Premises so affected in appropriate form and duly executed, in order that the Quitclaim Deed or Release may be placed on public record. Lessee shall have a reasonable period of time from the date of said Quitclaim Deed or Release to remove therefrom any property or fixtures placed by Lessee on abandoned land. Any property or fixtures of Lessee left on the abandoned land alter the appropriate removal date has lapsed shall, at the option of Lessor, become Lessor's property and fixtures or be removed from said land at the direction of Lessor but at the sole expense of Lessee. 11. NOTICES. All notices necessary to be given under the terms of this agreement shall be directed as follows: Lessor: Angela Celeste Hermannes 19 Brookshire Dr. �ers, NO 633;7,q Telephone: (6 36) 485-7235 Lessee: Hilcorp Alaska, LLC. 3800 Centerpoint Dr., Suite 1400 Anchorage, AK 99503 ATTN: Land Manager Telephone: (907) 777-8300 // Pax: (907) 777-8301 011., AND GAS LEASE (PAID-UP) Rev. 2016-00 Pige 6 or to such other address as each party hereto may designate by written notice to the other party. Notice shall be deemed given when actually received by the party entitled to notice or live (5) business days atter being sent by certified mail. "return receipt requested", to the last known address of the party entitled to notice. 12. POOLING. Lessee at its option may pool or combine separate oil, gas, and associated substances in any part or parts of the Leased Premises with other leased lands to form a drilling unit, provided that there be no more than six hundred and forty (640) acres for such combined area, plus a tolerance of 10% thereof, and on each of such unit or units a well (or wells) has been or may be drilled. Notwithstanding anything to the contrary contained in this lease, the commencement of operations for the drilling of a well on any such drilling unit shall have the same force and effect in all respects as the commencement of operations for the drilling of a well on the [eased Premises hereby leased: and drilling or reworking operations conducted on any.drilling unit or production of oil, gas, and associated substances anywhere from such drilling unit shall have the same force and effect as drilling or reworking operations conducted on or production obtained from the Leased Premises as to the extension of the term of this lease; provided, however, that in lieu of the royalties elsewhere herein specified. Lessor shall receive from production so pooled such portion of the royalties stipulated herein as the number of acres of the Leased Premises included in such unit bears to the total number of acres in such unit; provided. however, no reduction of shut-in royalties shall be made under this provision. 13. UNITIZATION. 13.1 Unitization. The Lessee may unite with others, jointly or separately, in collectively adopting and operating under a cooperative or unit agreement for the exploration, development. or operation of the pool, field, or like area or part of the pool, field, or like area that includes or underlies the Leased Premises or any part of the Leased Premises. 13.2 Alteration of Lease Terms. With the consent of the Lessee, and if the Leased Premises is committed to an approved unit agreement. the Lessor herein agrees that the state may establish, alter. change, or revoke drilling, producing, and royalty requirements of this lease as the state determines necessary or proper. This lease will be extended automatically if all or part of the Leased Premises is committed to an approved unit agreement and will remain in effect for so long as all or part of the Leased Premises remains committed to that unit agreement. 14. OFFSET WELLS. The Lessee shall drill such wells as a reasonable and prudent operator would drill to protect the Leased Premises from loss by reason of drainage resulting from production on other land. Without limiting the generality of the foregoing sentence, if oil or gas is OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 7 r produced in a well on land other than the Leased Premises, and that well is within 500 feet in the case of an oil well or 1,500 feet in the case of a gas well of lands then subject to this lease, and that well produces oil or gas for a period of 30 consecutive days in quantities that would appear to a reasonable and prudent operator to be sufficient to recover ordinary costs of drilling, completing, and producing an additional well in the same geological structure at an offset location with a reasonable profit to the operator, and that production from that well is draining this Leased Premises, then the Lessee shall within 60 days begin in good faith and diligently prosecute drilling operations for an offset well on the Leased Premises. 15. DEFINITIONS. The following words have the following meanings unless the context unavoidably requires otherwise: "Associated Substances" means all substances produced as an incident of production of oil or gas by ordinary production methods and not defined in this lease as oil or gas; "Drilling" means the act of boring a hole to reach a proposed bottom hole location through which oil or gas may be produced if encountered in paying quantities, and include redrilling, sidetracking, deepening, or other meals necessary to reach the proposed bottom hole location, testing, logging, plugging, and other operations necessary and incidental to the actual boring of the hole; "Gas" means all natural gas (except helium gas) and all other hydrocarbons produced that are not defined in this lease as oil, including gas produced from coal formations or seams; "Oil" means crude petroleum oil and other hydrocarbons, regardless of gravity, that are produced in liquid form by ordinary production methods, including liquid hydrocarbons known as distillate or condensate recovered by separation from gas other than at a gas processing plant; "Paying Quantities" means quantities sufficient to yield a return in excess of out-of- pocket operating costs, even if drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; quaiuities are insufficient to yield a return in excess of out-of-pocket operating costs unless those quantities_ not considering the costs of transportation and marketing, will produce sufficient revenue to induce a prudent operator to produce those quantities. "Reworking Operations" means all operations designed to secure, restore, or improve production through some use of a hole previously drilled, including, but not limited to, mechanical or chemical treatment of any horizon, plugging back to test higher strata, etc. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 8 16. BINDING AGREEMENT. This lease states the entire agreement between the parties, and no representation, promise, verbal of written, on behalf of either party shall be binding unless contained herein. This agreement shall be binding upon each of the parties who shall execute the same, regardless of whether or not all of the parties named as Lessor shall execute it. This agreement may be executed in counterpart form and all counterparts together shall be considered as one instrument. IN WITNESS WHEREOF, the parties hereto have caused this Oil and Gas Lease to be executed the day and year first hereinabove written. LESSOR Signature: Named: Angela Celeste Hermannes Title: Date: LESSEE Signature: Name: t avid S. Wilkins Title: Senior Vice President Date: Acknowledgments an Fallowing Pages OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 9 ACKNOWLEDGEMENT OF LESSOR STATE OF 6ijvr I ) 45�' �iS ass. COUNTY OF ) The foregoing Is�tr,w�ner4 was 2016, by P t W Notary Public - Notary Seal State of Missouri Coawntssionad for St. Louis County My Commission Expires: Jan. 5.2017 STATE OF ss. COUNTY OF the this 1fday of `JU "— Notary Public ' and for tl State of I My commission expires: _� t The foregoing instrument was acknowledged before me this _______day of 2016, by Notary Public in and for the State of My commission expires: ACKNOWLEDGEMENT OF LESSEE STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this 3 of jNcn� 2016, by David S.Wilkins, Senior Vice President of Hilcorp Alaska, LLC, a Delaware limited liability company, on behalf of the limited liability company. STATE OF ALASKA NOTARY PUBLIC v Judith A. Stanek NotaWy Public in and for Alaska MyComtisebn Bpho Mamh 13, 2018 My Commission Expires: 3—/ OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page 10 EXIBBIT "A" OIL AND GAS LEASE �h THIS OIL AND GAS LEASE made as of _L7 day of U1 t _. 2016, by and between Angela Celeste Hermannes, hereinafter called "Lessor", and Hilcorp Alaska, LLC, hereinafter called "Lessee". LEGAL DESCRIPTION 1.05S, R15W, S.M.. AK Section9: El/2NWI/4,W1/2NE1/4, excepting the WI/2NW1/4NW1/4 NEI A, and E1/2 NEI/4 NEI/4 NWl/4, aproximately 10 acres, and excepting Ronmar Acres Replat, Plat No. 97-39, approximatly 1.18 acres Containing 148.82 acres, more or less. OIL AND GAS LEASE (PAID-UP) Rev. 2016-00 Page I I RECEIVED JUN 2 2 1016 B UNSUSDNIDED R -Awn1 i 0 UTK,5 ESM'. R 62196'6' L - 60.09' 1 A 5.000 ACRES MM,WrAT 7.6 5i 660.51' GEA/16 GRANITE STONE LOTF.S MG'uMNT OF REca+o 1, A BUIUDOC SETBACK OF 20' IS REWIRED FROM ALL RATTED RIGHTS -CF -WAY UNIFSS A LESSER STANDARD IS APPROVED RY WSMUTION OF NE APPROPRIATE PLANNING COMMISSION ]. NO AIHVEY WAS MADE NOR WERE ANY STAKES OR MONUMNS SET OR FOUND, EXCEPT AS SHOWN. 1 ]HERE IS A SO' BUILDING SETBACK FROM UNSURNEYM PROPERTY LINES UNTIL SUM TIME AS LOT IS PULLY SURVEYED AND MGNUMENTED AFTER WICH IMF SETBACK WLL W GOVERNED BY BOQCU H REGULATIONS IN EFFECT. ♦. NO ACCESS TO STATE MAINTAINED RIGHTS -GF -WAY PERMITTED UNLESS APPROVED BY STATE OF ALASKA DEPARTMENT OF TRANSPORTATION. 5. MING OVERHEAD POWENUNE(S) IS CNTNLPIE OF A 20 R. RISE ELECTRICAL DISTRIBUTION LINE EASEMENT. 6. FRONT 10 FT. OF BUILDMD SETBACK IS A UTILITY EASEMENT. 1, NO PERMANENT STRUCPJRF SHALL K CONSTRUCTED OR PLACED 'N AN EASEMENT WNICN WOULD INTERFERE WTH INC ABILITY OF A UTUTY TO USE THE EASEMENT. 6, WA<TM4tfR vmOSAI� MESE LOIN ARE A' LEAST TIONS2OSOCC Y NOT FEET OR LE FOAL 5 ACRES IN SIZEEWA AND CONOITMT D NOT 8E SUITABLE FOR TREAT IN TREATMENT AND ST MEET L. ANY U'WASTEWAYER Y REOUIR NT OR DIS POSAL SYS DE MUST MEET THC REGULATORY CONSER ATIM CF P!F ALASKA DEPARTMENT OF ENN40NMNTpI CONSERVATION. 9. •HE STATE OF ALASKA DEPARTMENT BE TRANSPORTATION AND PUBLIC FACILITIES CLAIMS A 200 FEET WE RIGHT-OF-WAY EASEMENT. CENTERED ON M EXISTING ROAD BED OF NE OLD SIMUNG HIGHWAY. PER P1.0. 601. N 1B 6335 ACRES N 8954 -IC IF - LOT I I LOT IB ANCHOR ESTATES SUB. NO. 2 (HM83-77) 0 CURVE DIMENSION POINT. NOTMNO FOUND OR SET. e2}P)f/%CIfS Ol NAT}.'AOARY AM'ROPAL Ci.4l//>L1rF OF O�.TR9AlP NOTINYS A[NMNLiD'L'NNA3T / AnRY rte'/rl Me! Ab/My dN/ °!/bY¢ ° / Aa•bY -'C"pY /Mr / on Me n�ev u/ Me �l:Vrygnn// ..r= 1— A, AeM mm .M _E_ rbY rw/rosY Ar M➢ mfenb/bt es rA-Jay b Me Mem a+e cMVDM Awwn. Pr! Mn/ / M1iMY °.fpr /rM r uec n,.d e/ nPn mumGe a 9°or -LT Royn TA n Rfn er +re•v..t,M, °fe °� ^r f,v n».«�r va-xvrr w Me/ey b YY CbnnaHw rm�.. mr ormw mum w m. ra..+- R..P-e.'+P as/•xe .q+h-or- r o;mwnR' ®.... ro m.°*H °.... era am./ m °mEe, Ak r.F• �+A�SJ AW°ro MR pIn e/.w+bthm eM wnwsrsrh b Ms rm efewr. rt� AR..,nv r,•mmRx•. a w .,+av a ryiMr � !!A'Y <rAxReA ,rocanar A�Yk6lf lCAS !R V�f% B°F 318. a+.cn�v PONI. AN 99556 NOf/NYS Al2M1'd� NOTINYS A[NMNLiD'L'NNA3T F, L A. ..r= 1— A, AeM mm .M _E_ rbY Fa, AA. 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RS Davies, Stephen F (DOA) From: Cody Terrell <cterrell@hilcorp.com> Sent: Monday, August 21, 2017 9:27 AM To: Davies, Stephen F (DOA) Cc: Cody Dinger; Paul Mazzolini Subject: Seaview 6 Strat Test KPB Permit Attachments: Seaview 06 KPB Permit 17-130P 8-2-17.pdf Steve, See attached KPB permit for Seaview 6 strat test well. Regards, Cody T. Terrell I Landman I Hilcorp Alaska, LLC O: 907-777-8432 1 C: 713-870-4532 1 cterrelli<Dhilcorp.corn 3800 Centerpoint Dr., Suite 1400 1 Anchorage I Alaska 199503 This email may contain confidential and / or privileged information and is intended for the recipient(s) only. In the event yon receive this message in error. please notiR me and delete the message. Road Service Area 47140 E. Poppy Lane . Soldotna, Alaska 99669 (907) 262-4427 office, (907) 262-6090 fax www.borough.kenai.ak,us/roads MIKE NAVARRE BOROUGH MAYOR R.O.W. PERMIT - PROJECT SPECIFIC 'This permit Is to be completed by the RSA Director' ❑Road Construction ®Other: Drilling project - data gathering Category of Road: WA Width WA Length N/A Road Names: Seabury Rd Regiorl/Unit: South 3 Applicant Name: Hillcorp Alaska LLC Contractor: Kraxberger Drilling Inspector Name: Jed Painter RSA Phone # 262-4427 The ulred to call the In or for a minimum of 5 in Ions: For all Road Construction -19 as fabric being plat . -2n0whenthefirstlift(lossthan12Inchesdeep ed. 3b when next Igl is being than 12 ed. �'^ for substantial corn I In a punch Ilst O Items to complete �^ con •Note -As required by KPB ruction Standards: -Road Construction shall meet or exceed all currenttandards. Exc tions must be Pre -a roved Board or RSA Director and noted on -Due to soil complexities the RSA recommends perms enlist icensed road construction contractor and/or engineer. -It is the applicant's responsibility to determine then acquue r local, state, or lederal permits and to ensure all construction activity complies with all federal, s laws. -II is the appli si ility to survey the proposed Right -of -Way for construction and properly I sed road and all utilities in thWay. RSA Special Provisions: Applicant proposes to place a drill rig 450' westerly of the Intersection of Seabury Rd and Finlander Ct for the purpose of gathering data. Project is temporary, planned to span a period between 8-18 and 9.8, 2017. Schedule may be adjusted as necessary, but in any case will adhere to project specifications cited in attached application. RSA Special Provisions: Contact Road Inspector prior to start of work. 1. Drill outside of road prism if possible. 2. If drilling through road prism cannot be avoided make road repairs before leaving site. 3. Coordinate with local residents affected to ensure adequate access during times of necessary road closure. Approved: ® Denied: ❑ Revoked: ❑ Permit # i P sue Date: 8.2-17 Permit Expires: 9-30-17 By RSA Dlrector, te: 8.2-17 Date approved by RSA Board (if required): N/A Regulation of Traffic Flow During Construction: Permit holder may regulate traffic by (signage/ regulatory device/ barricade) during hours of: As required during daylight hours from (date) 8.18.17 to (date) 9.3D-17 KENAI PENINSULA BOROUGH Road Service Area (P. 47140 E. Poppy Lane • Soldotna, Alaska 99669 AUG 0 1 2017 Toll-free within the Borough: 1-800-478-4427 PHONE: (907) 262-4427 . FAX (907) 262-6090 www. kpb.us R0, (f Se"Vice APea PROJECT SPECIFIC RIGHT-OF-WAY (ROW) CONSTRUCTION PERMIT APPLICATION ❑ Road Construction Project Other (Excluding Driveways) Please List: Drilling Project - data gathering, temporary use Existing Road Upgrade 1-1 New Road Construction Road Construction Not F—I'Alternate Design Engineered Design 'Category IV Rd to KPB 14.06 Standards (These repuire prior RSA board approval be/ore construction It is the applicant's responsibility to determine the need for any other local, state or federal permits and acquire the same. Similarly, it is the applicant's responsibility to ensure all construction activity complies with all Federal, State, and Local laws. APPLICANT NAME. Hilcorp Alaska, LLC APPLICANT MAILING ADDRESS. 3800 Cenl}erpoinl+ Dr' CITY Anchorage STATE A ZIP 99503 907-777-8432 None 907-777-8580 TELEPHONE: _(CELL. FAX CONTRACTOR NAME:' K `raxberger Drilling ROAD NAME. Seabu ry Road SUBDIVISION: Meadow View 2 Estates EMAIL. cte rre l l@ I i lcorp. Co m REGION/UNIT (Determined by RSA) S J Q APPROXIMATE START DATE: 08/18/17 APPROXIMATE COMPLETION DATE: 09/08/1 7 Reased 912112016 Page I o14 REQUIRED ATTACHMENTS: OTHER ATTACHMENTS: (f appl.cable) ❑✓ Attachment A (page 4) ❑Engineering Design 1-1 Preliminary Plat or Final Plat ❑Other Government Agency F✓ Map Applications/Permits nAs-Built Survey Where information provided by existing topographic maps, aerial photography, and photographs is inadequate to accurately reflect conditions of the right-of-way or potential problems created or exacerbated by construction, additional information, surveys, or engineering analysis may be required prior to issuance of a permit. TRAFFIC FLOW: Applicant may request authority to regulate traffic: nYes n No during the following hours of the day on the following dates: during project (8-18- to 9- ) Applicant shall provide signage and safeguards in accordance with the Alaska Traffic Manual and shall obtain any further permission for such routing from appropriate entities including but not limited to fire, emergency medical, police, and school transportation agencies. Road passage or alternate access must be maintained or provided to residents at all times. --------------------------------------------------------- WATER BODIES: (KPB 14.40.061) All floodplains, floodways, wetlands, streams lakes, or other water bodies adjacent to or within 50 feet of the outer boundaries of the right-of-way must be clearly delineated on a map attached to application. Are water bodies as described above present within 50 feel of right-of- way? nYes F6/]No. Development conditions for rights-of-way accessing water bodies. No development within 100 feet of the high water mark of a waterbody within a right-of-way providing access to the waterbody may occur without a permit. All permits issued under this section shall be submitted to the RSA Board for its consideration. If applicable, date and Resolution No. of RSA Board approval Right-of-way construction permits pursuant to KPB 14.40.040-14.40.060 will not be issued to construct any part of a road or driveway or other development within the right-of-way where the construction or development will be parallel and within 100 feet of the ordinary high water mark of a watercourse or lake unless necessary for access to a lot where no reasonable alternative access exists or unless the road is for access to a bridge or public facility, waterbody, or watercourse. Construction will awill not occur within 100 feet of the ordinary high water mark of a watercourse. Pursuant to KPB 14.40.040-14.40.060 for waterbody crossings where a dedication crosses a waterbody catalogued as important to the protection of anadromous fish under AS 41.14.870(a) as now enacted or hereinafter amended, applicants must provide completed application for project permits to the United States Army Corps of Engineers and Re,nse0 9121,2016 Pape 2 of 4 Alaska Department of Fish and Game Division of Habitat. Anadromous waterbody crossings must be designed by a licensed civil engineer and submitted to the RSA Board for review and approval prior to construction. Designs must comply with KPB 14.40.061 requirements. P US Army Corp of Engineers Project Permit No. Issued on _ AK Dept. of Fish & Game Permit No. Issued on Construction does not cross dedicated catalogued waterbody as described above. THE KENAI PENINSULA BOROUGH SPECIFICALLY DISCLAIMS ANY WARRANTY OR LIABILITY REGARDING LOCATION OR COORDINATION WITH UTILITY COMPANIES. Statement of Applicant: I hereby affirm and agree that the work necessary to bring the project described herein to applicable roads standards as described in KPB 14.06 will be, or has been completed, to follow all permit requirements contained herein, in KPB 14.40 and Attachment B "Mandatory Conditions". By signing this application I certify that all the information provided above is true and accurate to the best of my knowledge that I am the responsible party for all proiect construction and that I am responsible for all communication with the Road Service Area (RSA). I further acknowledge and agree that any violation of a permit condition or failure to obtain a permit for work in a ROW is subject to a civil penally of up t $300 per day pursuant to KPB 14.40.380. Signature of Applicant Date INDEMNIFICATION: By signing this application, I hereby acknowledge that the permittee shall indemnify, defend, and hold and save the borough, its elected and appointed officers, agents and employees harmless from any and all claims, demands, suits, or liability of any nature, kind or character including costs, expenses, and attorneys fees. The permittee shall be responsible under this clause for any and all legal actions or claims of any character arising from applicant or applicant's agents' performance or failure to perform this permit in any way whatsoever. This defense and indemnification responsibility includes claims alleging acts or omissions of the borough or its agents, which are said to have contributed to the losses, failure, violations, or damages. KPB 14.40.060. of Applicant Date Pursuant to KPB 14.40.060(c), this permit may be subject to additional conditions to protect and manage borough ROWs by preventing damage to ROWs and adjacent public and private properties or waterbodies. This Permit may be revoked at any time for the Borough's convenience or for failure to comply with requirements herein, KPB code, or other applicable local, state, or federal law. Incomplete permit forms will be returned to applicants. Will Road Maintenance be requested? F]Yes F&—/]No If yes, a separate Road Maintenance Application must be submitted by September 1" for consideration that calendar year. Revised 91211?016 Pnge 3 of 4 RSA RIGHT-OF-WAY CONSTRUCTION PROJECT DESCRIIPTION ATTACHMENT A (Pursuant to KPB Chapter 14.40.050) PROJECT DESCRIPTION: (use extra pages if necessary) 1. Brief narrative of construction plans: 2. Proposed design and method of construction: N/A. Site use will be temporary 3. Statement of length and width of project and right-of-way to be constructed: N/A. Site use will be temporary. 4. Approximate grade of natural terrain and final grade of proposed construction: N/A. 5. Soil conditions of area subject to construction: Gravel Road. 6. Identify all properties affected, served or accessed by the proposed construction, provide owner name and parcel numbers: 7. Brief narrative of construction plans: 8. Proposed uses after construction: Rewse6 9i2112016 Page 4 o14 NOTES: 1. COORDINATES SIIOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVAIIONS. 2. AS -STAKED SURVEY CONDUCTED MAY 23. 2017. 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAVD88 (G128) ELEVATION OF SEAVIEW 6 = 162.04' LEGEND: 0 SET BRASS CAP MONUMENT ON 5/8" K 30" REBAR AS -STAKED SEAVIEW 6: LOCATED WITHIN SECTION 9, TSS, R15W, SM, AK SPCS NAD27 AK Z4N: LAT= 59'45'34.82618"N LONG= 151.50'41.11983"W N= 2,108,818.64' E= 159,883.04' SPCS NA083 AK Z4N: LAT= 59'45'32.62208"N LONG= 151'50'48.90305"W N= 2.108.575.16' E= 1,299,908.13' OWNER: KENAI PENINSULA BOROUGH 0 100 200 FEET _- SCALE PROXCT LOCATED IN SEC. 9, T 5 S, R 15 W, S.N. 11 P15x ANCHOR POINT ,+ST 3 alp/ 1 IIt hL G SEAMEW a 9 9 F ..N __r I VICINITY MAP: 1" = 1 Mlle 1RAC1 24 "' N� TRACT 1R yID MEADOW VIEW ESTATES JTT V I, TRACT 23 p YQ I, TRACT 19 t 1 1 1 '\ 9 �( E TRACT 22 `.,eSEANEW 6 \ yop \ c'e ' MEADOW VIEW ESTATES II TRACT 5 �A J 5 1RACT 6 � .��OF At ��� SURVEYOR'S CERTIFICATE: S C� .40tl I HEREBY CERTIFY THAI I AM REGISTERED AND LICENSED TO PRACTICE LAND SURVEYING IN THE STATE OF ALASKA AND THAT THIS AS -STAKED EXHIBIT REPRESENTS AMY DIRECT *:'49TH *�/ SUPERVISION. D AENSIONSRVEY AND OTHERMADEBDETTAILSRAREDER CORRECT TO THE "" """p" " "��' BEST OF MY KNOWLEDGE. / .................. '. MICHAEL R. EWI LS -11794 ? // <A,, 4 •oft �'� R ICON DATE: 5/30/2017 DRAWING: H6eor De AaSteked-2 SHEET: 1 OF 1 ftEV: 0 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, July 26, 2017 9:44 AM To: Cody Terrell Subject: Seaview 6 (PTD #217-112) - Landowner and Surface Owner Approvals Needed Cody, Box 6 on the Permit to Drill application form for Seaview 6 indicates: "Surface: KPB ROW/Subsurface: Private Leased" but the As -Built survey places the well location directly in the center of Seabury Road. Questions: 1) Has the subsurface estate been separated from the surface at this location? 2) Or is this well on only KPB Right -of -Way? If 1) is true, the AOGCC will need approvals from both the KPB and the subsurface owners before the Permit to Drill can be approved. If 2) is true, the AOGCC will need approval from only the KPB before the Permit to Drill can be approved. Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (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 daviesOalaska.gov. From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Friday, July 21, 2017 11:40 AM To: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Cc: Paul Mazzolini <pmazzolini@hilcorp.com>; Cody Dinger <cdinger@hilcorp.com>; Keegan Fleming <kfleming@hilcorp.com> Subject: RE: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Yes, Seaview 3, 6, & 7 are a[] on KPB ROW. We are waiting on approval by KPB. I will send approvals your way ASAP. Regards, Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA) [mailto:steve davies@alaska.aov] Sent: Friday, July 21, 2017 9:11 AM To: Cody Terrell <cterrell hilcorp.com> Subject: RE: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Thank you Cody. The AOGCC will also need the landowner approvals for Seaview 3, 6, and 7 before the Permits to Drill can be granted. I assume that these are located on land owned by the Kenai Peninsula Borough or by the State. Correct? Regards, 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.davies(@alaska.gov. From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Friday, July 21, 2017 7:59 AM To: Davies, Stephen F (DOA) <steve.davies@alasl<a.gov> Subject: RE: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Steve, 1 attached to this email the surface owner approval for Seaview 1, along with the remaining private land owner approvals. Please let me know if you need anything else. Regards. Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA)[maiIto: steve.davies@alaska.gov] Sent: Thursday, July 20, 2017 5:42 PM To: Cody Terrell <cterrell@hilcorp.com> Subject: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Cody, I'm reviewing Hilcorp's Permit to Drill application for the Seaview 1 well, which reports an approximate spud date of July 24`h. According to the Property Designation box on the application form, this well will be located on private property. According to the cover letter accompanying Hilcorp's application: "Approvals from surface landowners have been obtained prior to surveying, staking and preparation of the site for each stratigrophic test well. These approvals are included as an attachment with each PTD application." A copy of the landowner and surface owner approval was not attached to the Seaview 1 application. Could Hilcorp please provide copies of these approvals to the AOGCC? The Permit to Drill for Seaview 1 cannot be granted without these approvals. 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.eov. AOGCC Permit to Drill 25 July 2017 INPUT Geographic, NAD27 SEAVIEW 6 Latitude: 59 45 34.82618 Longitude: 151 50 41.11983 OUTPUT State Plane, NAD27 5004 -Alaska 4, U.S. Feet 1/1 . N orth ingN: 2108818.644 EastinglX: 159883.044 Convergence: -1 35 37.90535 Scale Factor: 1.000031660 Remark: Corpscon v6.0.1, U.S. Army Corps of Engineers Remark: AOGCC Permit to Drill 25 July 2017 INPUT Geographic, NAD27 SEAVIEW 6 Latitude: 59 45 34.82618 Longitude: 151 50 41.11983 SEAVIEW 6 Latitude: 59 45 34.82618 Longitude: 151 50 41.11983 OUTPUT Geographic, NAD27 v2 Latitude: 59.759673939 Longitude: 151.844755508 2f2 Latitude: 59.759673939 Longitude: 151.844755508 Corpscon v6.0.1, U.S. Army Corps of Engineers Remark: AOGCC Permit to Drill 25 July 2017 INPUT Geographic, NAD27 OUTPUT Geographic, NAD83 Accuracies of conversions from NAD 27 to NAD 83 are typically 12 to 18 cm. SEAVIEW 6 111 Latitude: 59 45 34.82618 Longitude: 151 50 41.11983 Latitude: 59 45 32.62208 Longitude: 151 50 48.90305 Datum Shift (m.): Delta Lat. = -68.210, Delta Lon = 121.515 Corpscon v6.0.1, U.S. Army Corps of Engineers AOGCC Permit to Drill 25 July 2017 INPUT Geographic, NAD27 OUTPUT State Plane, NAD83 5004 -Alaska 4, U.S. Feet Accuracies of conversions from NAD 27 to NAD 83 are typicaW 12 to 18 cm. SEAVIEW 6 ill Latitude: 59 45 34.82618 Longitude: 151 50 41.11983 NorthingN: 2108575.160 EastinglX: 1299908.130 Convergence: -1 35 44.59541 Scale Factor: 1.000031974 Datum Shift (m.): Delta Lat. = -68.210, Delta Lon = 121.515 Remark: Corpscon v6.0.1, U.S. Army Corps of Engineers Davies, Stephen F (DOA) From: Cody Terrell <cterrell@hilcorp.com> Sent: Monday, August 21, 2017 9:27 AM To: Davies, Stephen F (DOA) Cc: Cody Dinger; Paul Mazzolini Subject: Seaview 6 Strat Test KPB Permit Attachments: Seaview 06 KPB Permit 17-130P 8-2-17.pdf Steve, See attached KPB permit for Seaview 6 strat test well. Regards, Cody T. Terrell I Landman I Hilcorp Alaska, LLC O: 907-777-8432 1 C: 713-870-4532 1 cterrell hilcorp.com 3800 Centerpoint Dr., Suite 1400 1 Anchorage I Alaska 199503 This email may contain confidential and / or privileged information and is intended for the recipient(s) only. In the event you receive this message in error, please notify me and delete the message. Road Service Area 47140 E. Poppy Lane • Soldotna, Alaska 99669 (907) 262-4427 office, (907) 262-6090 fax www.borough.kenai.ak.us/roads R.O.W. PERMIT - PROJECT SPECIFIC MIKE NAVARRE BOROUGH MAYOR 'This permit Is to be completed by the RSA Director' ❑Road Construction ®Other: Drilling project - data gathering Category of Road: WA Width NIA Length N/A Road Names: Seabury Rd Region/Unit: South 3 Applicant Name: Hillcorp Alaska LLC Contractor: Kraxberger Drilling Inspector Name: Jed Painter RSA Phone # 262-4427 The uired to call the Inspector for a minimum of 5 in Ions: For all Road Construction -1p as fabric being plae -2n° when the first lift (less than 12 inches deep qed. -3ntl when next IMI Is being compacted. -4U for substantial com I In a punch list of Items to complete 5 ^ ron 'Note -As required by KPB ction Standards: -Road Construction shall meet or exceed all curren tandards. Exceptions must be Pre -a Proved Board or RSA Director and noted on thiseemi -Due to soil complexities the RSA recommends perms enlist icensed road construction contractor and/or engineer. Lactivity he applicant's responsibility to determine the n We r local, state, or federal permits and to ensure all construction complies with all federal, s laws. he appli si ility to survey the proposed Rightof-Way for construction and properly Iota sed road and all utilities in -Way. RSA Special Provisions: Applicant proposes to place a drill rig 450' westerly of the Intersection of Seabury Rd and Finlander Ct for the purpose of gathering data. Project is temporary, planned to span a period between 8.18 and 9-8,2017. Schedule may be adjusted as necessary, but In any case will adhere to project specifications cited in attached application. RSA Special Provisions: Contact Road Inspector prior to start of work. 1. Drill outside of road prism if possible. 2. If drilling through road prism cannot be avoided, make road repairs before leaving site. 3. Coordinate with local residents affected to ensure adequate access during times of necessary road closure. Approved: ® Denied: ❑ Revoked: ❑ Permit #_L% - L3 ? P sue Date: 8.2-17 Permit Expires: 9.30.17 V. By RSA Director.te: 8.2-17 Date approved by RSA Board (if required): N/A Regulation of Traffic Flow During Construction: Permit holder may regulate traffic by (signage/ regulatory device/ barricade) during hours of: As required during daylight hours from (date) 8-18.17 to (date) 9.30.17 KENAI PENINSULA BOROUGH "B Road Service Area 47140 E. Poppy Lane if Soldotna, Alaska 99669 AUG 0 12017 Toll-free within the Borough: 1-800-478-4427 PHONE: (907) 262-4427 . FAX (907) 262-6090 .W :• 1:7 www.kpbAs Road SerVlce Area PROJECT SPECIFIC RIGHT-OF-WAY (ROW) CONSTRUCTION PERMIT APPLICATION ❑ Road Construction Project Other (Excluding Driveways) Please List: Drilling Project - data gathering, temporary use 1-1 Existing Road Upgrade U New Road Construction Road Construction Not n -Alternate Design F -I -Engineered Design 'Category IV Rd to KPB 14.06 Standards (These require prior RSA hoard approval be/ore constriction) It is the applicant's responsibility to determine the need for any other local, state or federal permits and acquire the same. Similarly, it is the applicant's responsibility to ensure all construction activity complies with all Federal, State, and Local laws. APPLICANT NAME: HIICOrp Alaska, LLC APPLICANT MAILINGADDRESS:O"OO Centerpoint Dr. CITY.Anchoragei STATE -.AK ZIP. 99503 TELEPHONE 907-777-8432 CELL None FAX OO! -777-8580 CONTRACTOR NAME:' `raxberger Drilling ROAD NAME: Seabu ry Road SUBDIVISION; Meadow View 2 Estates EMAIL.Cl}errell@hilcorp.com REGION/UNIT(Delern,medby RSA) (S J APPROXIMATE START DATE: 08/18/17 APPROXIMATE COMPLETION DATE: O" /OH/1 7 Revised 9'2112016 Wage I of REQUIRED ATTACHMENTS: OTHER ATTACHMENTS: (i1 applicable) F&—/]Attachment A (page 4) ❑Engineering Design F]Preliminary Plat or Final Plat FlOther Government Agency Map Applications/Permits r]As-Built Survey Where information provided by existing topographic maps, aerial photography, and photographs is inadequate to accurately reflect conditions of the right-of-way or potential problems created or exacerbated by construction, additional information, surveys, or engineering analysis may be required prior to issuance of a permit. TRAFFIC FLOW: Applicant may request authority to regulate traffic: nYes n No during the following hours of the day on the following dates: during project (8-18- to 9- ) Applicant shall provide signage and safeguards in accordance with the Alaska Traffic Manual and shall obtain any further permission for such routing from appropriate entities including but not limited to fire, emergency medical, police, and school transportation agencies. Road passage or alternate access must be maintained or provided to residents at all times. --------------------------------------------------------- WATER BODIES: (KPB 14.40.061) All floodplains, floodways, wetlands, streams lakes, or other water bodies adjacent to or within 50 feet of the outer boundaries of the right-of-way must be clearly delineated on a map attached to application. Are water bodies as described above present within 50 feet of right-of- way? nYes ❑t/ No. Development conditions for rights-of-way accessing water bodies. No development within 100 feet of the high water mark of a waterbody within a right-of-way providing access to the waterbody may occur without a permit. All permits issued under this section shall be submitted to the RSA Board for its consideration. If applicable, date and Resolution No. of RSA Board approval Right-of-way construction permits pursuant to KPB 14.40.040-14.40.060 will not be issued to construct any part of a road or driveway or other development within the right-of-way where the construction or development will be parallel and within 100 feet of the ordinary high water mark of a watercourse or lake unless necessary for access to a lot where no reasonable alternative access exists or unless the road is for access to a bridge or public facility, waterbody, or watercourse. Construction will 2will not occur within 100 feet of the ordinary high water mark of a watercourse. Pursuant to KPB 14.40.040-14.40.060 for waterbody crossings where a dedication crosses a waterbody catalogued as important to the protection of anadromous fish under AS 41.14.870(a) as now enacted or hereinafter amended, applicants must provide completed application for project permits to the United States Army Corps of Engineers and Revised 5121,2016 Pe9e 2 0 4 Alaska Department of Fish and Game Division of Habitat. Anadromous waterbody crossings must be designed by a licensed civil engineer and submitted to the RSA Board for review and approval prior to construction. Designs must comply with KPB 14.40.061 requirements. PUS Army Corp of Engineers Project Permit No. Issued on AK Dept. of Fish & Game Permit No. Issued on ✓ Construction does not cross dedicated catalogued waterbody as described above. THE KENAI PENINSULA BOROUGH SPECIFICALLY DISCLAIMS ANY WARRANTY OR LIABILITY REGARDING LOCATION OR COORDINATION WITH UTILITY COMPANIES. Statement of Applicant: I hereby affirm and agree that the work necessary to bring the project described herein to applicable roads standards as described in KPB 14.06 will be, or has been completed, to follow all permit requirements contained herein, in KPB 14.40 and Attachment B "Mandatory Conditions". By signing this application I certify that all the information provided above is true and accurate to the best of my knowledge that I am the responsible party for all proiect construction and that I am responsible for all communication with the Road Service Area (RSA). I further acknowledge and agree that any violation of a permit condition or failure to obtain a permit for work in a ROW is subject to a civil penalty of up 1"300 per day pursuant to KPB 14.40.380. of Applicant Date INDEMNIFICATION: By signing this application, I hereby acknowledge that the permittee shall indemnify, defend, and hold and save the borough, its elected and appointed officers, agents and employees harmless from any and all claims, demands, suits, or liability of any nature, kind or character including costs, expenses, and attorneys fees. The permittee shall be responsible under this clause for any and all legal actions or claims of any character arising from applicant or applicant's agents' performance or failure to perform this permit in any way whatsoever. This defense and indemnification responsibility includes claims alleging acts or omissions of the borough or its agents, which are said to have contributed to the losses, failure, violations, or damages. KPB 14.40.060. Pursuant to KPB 14.40.060(c), this permit may be subject to additional conditions to protect and manage borough ROWs by preventing damage to ROWs and adjacent public and private properties or waterbodies. This Permit may be revoked at any time for the Borough's convenience or for failure to comply with requirements herein, KPB code, or other applicable local, state, or federal law. Incomplete permit forms will be returned to applicants. Will Road Maintenance be requested? F]Yes Fv]No If yes, a separate Road Maintenance Application must be submitted by September 15, for consideration that calendar year. R.d921,2016 Pa0c]W4 RSA RIGHT-OF-WAY CONSTRUCTION PROJECT DESCRIIPTION ATTACHMENT A (Pursuant to KPB Chapter 14.40.050) PROJECT DESCRIPTION: (use extra pages if necessary) 1. Brief narrative of construction plans: Proiect is planned to last 5-10 days beginning Aug 18 2017 to Sep 8 2017 Schedule may be adjusted, final spud date is TBD. 2. Proposed design and method of construction: N/A. Site use will be temporary 3. Statement of length and width of project and right-of-way to be constructed: N/A. Site use will be temporary. 4. Approximate grade of natural terrain and final grade of proposed construction: N/A. 5. Soil conditions of area subject to construction: Gravel Road. 6. Identify all properties affected, served or accessed by the proposed construction, provide owner name and parcel numbers: 7. Brief narrative of construction plans: N/A Site use will be temporary and no permanent modifications are planned. Site will be returned to pre -drilling conditions immediately followinq drilling operations. 8. Proposed uses after construction: N/A. Site use will be temporary and no permanent modifications are planned. Site will be returned to pre -drilling conditions immediately following drilling operations. Re,rsW 92V2016 Page 4 cl 4 S—STAKED NOTES: T. COORDINATES SHOWN ARE BASED UPON DIFFERENTIALLY CORRECTED GPS OBSERVATIONS. 2. AS -STAKED SURVEY CONDUCTED MAY 23, 2017, 3. ALL DISTANCES ARE IN U.S. SURVEY FEET. 4. SURVEYED NAV088 (C12B) ELEVATION OF SEAVIEW 6 = 162.04' LEGEND: SET BRASS CAP MONUMENT ON 5/8" X 30" REBAR AS—STAKED SEAVIEW 6: LOCATED WITHIN SECTION 9. T5S, R15W, SM, AK SPCS NAD27 AK Z4N: LAT= 59'45'34.82618"N LONG= 151'50'41.11983"W N= 2.108,818.64' E= 159,883.04' SPCS NAD83 AK Z4N: EAT= 59'45'32.62208"N LONG= 151'50'48.90305'W N= 2.108,575.16' E= 1,299,908.13' OWNER: KENAI PENINSULA BOROUGH 0 100 200 FEET rt SCALE L� z VICINITY MAP: 1" - i Mlle THAI 24 MEADOW VIEW ESTATES TRACT 23 \oFlh \ INA( I 72 SEAVI W 6 0 MEADOW VIEW ESTATES II TRACT S wnCT 5 �"o"OFA(4k%I' qS P� i �O ��Q;LAND SURVEYING IN TH REPRESEN S A ESURVEY MADESTATE OFE ASKA BY MEA ND OR UNDERTHIS MY DIRECT AS -STAKED * 49 TM * EXHIBIT OTHER DETAILS ARE CORRECT TO THE .." ..' " I SUPERVISION. DIMENSIONS AND BEST OF MY KNOWLEDGE. MEADOW VIEW ESTATES II TRACT S wnCT 5 �"o"OFA(4k%I' qS SURVEYOR'S CERTIFICATE: i I HEREBY CERTIFY THAT I AM RECtSTERED AND LICENSED TO PRACTICE ��Q;LAND SURVEYING IN TH REPRESEN S A ESURVEY MADESTATE OFE ASKA BY MEA ND OR UNDERTHIS MY DIRECT AS -STAKED * 49 TM * EXHIBIT OTHER DETAILS ARE CORRECT TO THE .." ..' " I SUPERVISION. DIMENSIONS AND BEST OF MY KNOWLEDGE. �u/y r^ .MICHAEL R. EWIMB; LS -11794 RLI ON F °faT:ssona. `� • �� \���rQ _. Z (_l -/tom Davies, Stephen F (DOA) From: Cody Terrell <cterrell@hilcorp.com> Sent: Thursday, July 27, 2017 2:43 PM To: Davies, Stephen F (DOA) Cc: Paul Mazzolini; Cody Dinger; Keegan Fleming Subject: RE: Seaview 6 (PTD #217-112) - Landowner and Surface Owner Approvals Needed Attachments: Recorded Memo of Lse ADL 392667 eff 3-1-15.pdf Steve, Seaview 6 is located on the KPB Right -of -Way (Seabury Road), and the subsurface mineral estate underneath the road is owned by the State of Alaska. Hilcorp has the subsurface under lease from the State of Alaska (see attachment). The State oil and gas lease permits the Lessee (Hilcorp) to conduct exploration activities, such as our strat test well. As for surface owner permission, 1 have submitted an application to KPB for a surface use permit for Seaview 3, 6, & 7, which are pending approval. Once approved, I will send the approvals your way. Please let nae know if you have any other questions. Regards. Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA) (mailto:steve.davies@alaska.gov] Sent: Wednesday, July 26, 2017 9:44 AM To: Cody Terrell <cterrell@hilcorp.com> Subject: Seaview 6 (PTD #217-112) - Landowner and Surface Owner Approvals Needed Cody, Box 6 on the Permit to Drill application form for Seaview 6 indicates: "Surface: KPB ROW/Subsurface: Private Leased", but the As -Built survey places the well location directly in the center of Seabury Road. Questions: 1) Has the subsurface estate been separated from the surface at this location? 2) Or is this well on only KPB Right -of -Way? If 1) is true, the AOGCC will need approvals from both the KPB and the subsurface owners before the Permit to Drill can be approved. If 2) is true, the AOGCC will need approval from only the KPB before the Permit to Drill can be approved. Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (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.davies@alaska.Qov. From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Friday, July 21, 2017 11:40 AM To: Davies, Stephen F (DOA) <steve.davies@alaska.eov> Cc: Paul Mazzolini <pmazzolini@hilcorp.com>; Cody Dinger <cdinger@hilcorp.com>; Keegan Fleming <kflemi ne@ hilcorp.com> Subject: RE: Seaview 1(PTD #217-107) - Landowner and Surface Owner Approvals Needed Yes, Seaview 3. 6, R 7 are all on KPB ROW. We are waiting on approval by KPB. I will send approvals your way ASAP. Regards, Codv T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.aov] Sent: Friday, July 21, 2017 9:11 AM To: Cody Terrell <cterrell@hilcorp.com> Subject: RE: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Thank you Cody. The AOGCC will also need the landowner approvals for Seaview 3, 6, and 7 before the Permits to Drill can be granted. I assume that these are located on land owned by the Kenai Peninsula Borough or by the State. Correct? Regards, 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.davies@alaska.¢ov. From: Cody Terrell [mailto:cterrell@hilcorp.com] Sent: Friday, July 21, 2017 7:59 AM To: Davies, Stephen F (DOA) <steve.davies@alaska.gov> Subject: RE: Seaview 1 (PTD #217-107) - Landowner and Surface Owner Approvals Needed Steve, I attached to this email the surface owner approval for Seaview I, along with the remaining private land owner approvals Please let me know if you need anything else. Regards. Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 From: Davies, Stephen F (DOA)[mailto:steve.davies@alaska.aov] Sent: Thursday, July 20, 2017 5:42 PM To: Cody Terrell <cterrell@hilcorp.com> Subject: Seaview 1(PTD #217-107) - Landowner and Surface Owner Approvals Needed Cody, I'm reviewing Hilcorp's Permit to Drill application forthe Seaview 1 well, which reports an approximate spud date of July 20. According to the Property Designation box on the application form, this well will be located on private property. According to the cover letter accompanying Hilcorp's application: "Approvals from surface landowners have been obtained prior to surveying, staking and preparation of the site for each stratigraphic test well. These approvals are included as an attachment with each PTD application." A copy of the landowner and surface owner approval was not attached to the Seaview 1 application. Could Hilcorp please provide copies of these approvals to the AOGCC? The Permit to Drill for Seaview 1 cannot be granted without these approvals. 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.davies@alaska.eov. A 2015-000613-0 s Recording District 309 Homer K A 03/13/2015 01:28 PM Page 1 of 3 II IIIIIIiill 1111111 lllililllllllllliliillllillllllllllllllllllllllllllllilllllllllllllll lil Record in the Homer _ Recording District Memorandum of Lease This Memorandum of Lease is intended to give notice of a COMPETITIVE OIL AND GAS LEASE, Form RDOG 201208W, issued February 25, 2015. Said Lease was issued by and between the State of Alaska, as Lessor, and Hilcorp Alaska, LLC, as Lessee, and is effective March 1, 2015. Pursuant to the terms of said Lease, the Lessor grants to the Lessee, without warranty, the exclusive right to drill for, extract, remove, clean, process, and dispose of oil, gas, and associated substances and the nonexclusive right to conduct geological and geophysical exploration for oil, gas, and associated substances and to install pipelines and build structures to find, produce, save, store, treat, process, transport, take care of, and market all oil, gas, and associated substances and to house and board employees in its operations until lease expiration on February 28, 2025, unless sooner terminated, on the lands described in the attached Exhibit A(s). The Lease also provides for the Lessee to maintain the lease for so long thereafter as Lessee is producing oil, gas or associated hydrocarbons in paying quantities therefrom, and on such other terms and conditions as set forth in the Lease. This Memorandum of Lease is prepared for the purpose of recordation as authorized under AS 40.17.120 and in no way changes, modifies or otherwise affects any provision of the Lease, including the mitigation measures incorporated therein. Further information regarding the Lease may be obtained from the parties at the following addresses: State of Alaska Department of Natural Resources Division of Oil and Gas 550 West 7a' Ave., Suite 1100 Anchorage, AK 99501-3563 Hilcorp Alaska, LLC Attn: Kevin A. Tabler 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 This Memorandum of Lease covers State of Alaska Competitive Oil and Gas Leases: ADL 392667 STATE OF ALASKA By: v Paul Deck Acting Director, Division of Oil and Gas STATE OF ALASKA ) ) ss. `third Judicial District ) On FEB 2 5 2015 , before me appeared ?ot Q l e L'k-e - of the Division of Oil and Gas of the State of Alaska, Department of Natural Resources, and who signed this Memorandum of [.ease and acknowledged voluntarily si it on beha f of the State of Alaska as lessor. LZOTARY TE Otr ALAStt PUBLIC -, Not public in and for the tate of Alaska ONA HURSTMy commission expires n m'�a tYtu� Circa. Memorandum of Lease February 25, 2015 Page 2 of 2 Homer Recording District Following Recording Return to: Hilcorp Alaska, LLC Attn: Land Manager 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 LESSEE: ILCORP ALASKA, LLC Signatur Printed N e itle: John A. Barnes, Senior Vice President INSERT NOTARY ACKNOWLEDGMENT OF LESSEE'S SIGNATURE HERE. STATE OF ALASKA ) ) as. Third Judicial District ) The foregoing instrument was acknowledged before me this 2nd day of March 2015, by John A. Barnes, Senior Vice President of Hilcorp Alaska, LLC, a Delaware limited liability company, on behalf of the limited liability company. N public in and for the State of Alaska My commission expires: March 13, 2018 STATE OF ALASKA NOTARY PUBLIC jo Judith A. Stanek My Comnt11Mlon Bp ns March 13, 2018 I��I�I�I�fd����II1Y191�G1[I���111�III Page 2 of 3 2015-000613-0 Exhibit A ADL 392667 Tract 815 T. 005S, R. 015W, Seward Meridian, Alaska. Section 4: Surveyed, Fractional, SE1/4NW1/4, SE1/4SE1/4NW1/4NE1/4, SW1/4SW1/4NE1/4NE1/4, West 1/2 of Lots 2 and 8 Tract A Subdixision of Portion of Clark Peterson Homestead, filed as Record of Survey 54-2253 in the Horner Recoding District, 1/2 Interest in mineral estate Tract A Silver King Wayside Intern Island, filed as Plat 81-93 in the Homer Recording District, 1/2 Interest in oil and mineral estate of Tract A Silver King Estates and Anchor Heights Park, filed as Plat 79- 34 in the Homer Recording District, and the bed of the Anchor River from Cook Inlet to its confluence with the North Fork Anchor River, 60.20 acres; Section 5: Surveyed, Fractional, Lots 1 through 4 Anchor King Amended, filed as Plat 83-15 in the Homer Recording District, and the bed of the Anchor River from Cook Inlet, 15:72 acres; Section 8: Surveyed, Fractional, Lots 3 and 4, 39.06 acres; Section 9: Surveyed, SE1/4NE1/4, S1/2S1/2, 200.00 acres; Section 16: Surveyed, Fractional, Lots 1 through 3, NE1/4, E1/2NW1/4, WMSE1/4, 422.46 acres; This Tract (C10815) contains 737.44 acres, more or less. According to the survey plat approved by the U.S. Survey General's Office in Juneau, AK on April 17, 1919 and officially accepted on May 5, 1919 and the Supplemental Plat of Section 5 accepted by the United States Department of the Interior, Bureau of Land Management in Washington, D.C. on November 6, 1947 illllllli�l� A���IV1�111161gy191111a�911111� Page 3 of 3 2015-000613-0 United Slates dAmedca Me of Mske i -- THIS IS TO CERTIFY that the foregoing Is a full, true and correct COPY of the document as it appears in the records and fifes of my office, IN THE WITNESS WHEREOF, I have hereunto set my hand and have affixed my Official ,seal at Homer, Alaska, this ? l� day Of _.�2--r✓'`�'�-'`%'!'l,_ 20 t 5 �+ 6y Hecordar 11 THE STATER Department of Natural Resources °1ALl 1S� v [l 1 7 ��, v OF j I S1 &, G:1S ;:o ��i tii -� .�Vitiu S1 III iu)n 'lain 410'269,5NOO GOVERNOR HILL WALKER Ii, ;07'w)-8161) February 25, 2015 Hilcorp Alaska, LLC Kevin A. Tabler 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Memorandum of Lease Dear Sir, Using a "Memorandum of Lease' for recordation of oil and gas leases issued by the State of Alaska is beneficial to both the state and the lessee. The cost savings to the lessee for recording fees can be substantial and the workload on recording staff reduced significantly. I've prepared the necessary memorandum and had the same executed by the director on behalf of the State of Alaska. Should you wish to use the documents to record your leases, you need only have the memorandum executed by each lessee and attach copies of each lease Exhibit A as indicated in the document. Upon request, I can provide an electronic copy of the lessee's signature page for ease in completing the notary acknowledgement. I hope this will aid you in your records management. If you have any questions at all about the documents, their execution, or the process itself please contact me at (907) 269-8810 or rona.hurst@alaska.gov. Sincerely, 6� `� Rona Hurst Natural Resource Manager Enclosures FIELD: TRANSMITTAL LETTER CHECKLIST WELL NAME: '2 Gc- PTD: Z (7 — 11-2 Development Service Exploratory �Stratigraphic Test _ Non -Conventional POOL: Check Box for Appropriate Letter / Paragraphs to be Included in Transmittal Letter CHECK OPTIONS TEXT FOR APPROVAL LETTER MULTI The permit is for a new wellbore segment of existing well Permit LATERAL No. , API No. 50 - (If last two digits Production should continue to be reported as a function of the original in API number are API number stated above. between 60-69 In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well Pilot Hole name ( PH) and API number (50 -_ from records, data and logs acquired for well name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce/inject is contingent upon issuance of a conservation Spacing Exception order approving a spacing exception. (Comoanv Name) Operator assumes the liability of any protest to the spacing exception that may occ ditch sample sets submitted to the AOGCC must be in no greater v Dry Ditch Sample than 30' sample intervals s Please note the following special condition of this permit: production or production testing of coal bed methane is not allowed for Non -Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 AAC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached a lication, the following well logs -are / also required for this well: / , �� '_ Et z ` Well Logging L�ti lCL L �/J� Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 AAC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. Revised 2/2015 ✓C�LLC-� 7' % WELL PERMIT CHECKLIST Field & Pool well Name: SEAVIEW s __ Program _ TR well bore seg PTD#:2171120 Company HILCOHP_ALASKASLC Initial Classrrype STIR / PEND GeoArea 820 Unit On/Off Shore On Annular Disposal Administration 17 Nonconven, gas conforms to AS31.05.030(j.1..A),(j,2.A-D) _ _ _ NA 1 Permit fee attached. _ _ _ _ _ _ _ ... _ _ NA.. Well will be located. within Kenai Peninsula. Borough Right,of-Way, and possibly on private land, 2 Lease number appropriate....... _ _ _ _ _ _ _ _ _ Yes 7/26: Requested Hilcorp. provide a copy of the signed Landowner Consent Form(s). 8/23; Reveived.. 3 Unique well name and number ....... _ _ _ _ Yes _ _ _ Unique well number. Very shallow (600'_ MD/TVD), vertical, strat test.well to validate 4 Well located in a. defined pool _ _ _ _ _ _ _ _ _ No _ shallow geologic structure. Well will be located 25' from the external property boundary, 5 Well located proper distance from drilling unit. boundary. _ _ _ Yes _ _ Impacted area will be a 35' by 79. Will lie 4,700'. N of P&Adexploratory. well .Anchor Pt. 1..... 6 Well located proper distance from other wells _ Yes There are NO shallow registered. water wells or subsurface water rights certificates within _ 7 Sufficient acreage available in drilling unit _ _ _ _ _ _ _ _ Yes _ within 1/4 mile of Seaview 6. The nearest well, Seayiew 3,. will be located about 2,200' 8 If deviated, is wellbore plat included _ _ _ _ NA _ to the. SW. 9 Operator only affected party. _ _ _ _ _ _ _ Yes Seaview, 6 will. penetrate fresh to slightly brackish aquifers of sand & conglomeratic sand _inter- 10 Operator has appropriate bond in force _ _ Yes bedded with silt & clay in glacial and lacustrine deposits, and reach TD within the thinly inter- Appr Date 11 Permit can be issued without conservation order _ _ _ _ Yes bedded sandstone,_ siltstone, claystone and coal of the Beluga Fm. Only small amounts of..... SFD 8/23/2017 12 Permit can be issued without administrative approval . _ _ _ _ _ _ _ _ _ _ _ _ Yes methane are expected. associated with coals, 13 Can permit be approved before 15-day wait _ _ _ .. Yes 14 Well located within area and strata authorized by. Injection Order # (put 10# in. comments) (For. NA 15 All wells. within 114 mile area of review identified (For service well only). NA 16 18 Pre-produced injector; duration of pre production less than 3 months (For. service well only) _ Conductor strklg.provided _ _ _ _ _ _ .. _ _ _ _ NA Yes _ .... ... 6 5/8" conductor to be set at 100-150 ft. Engineering 19 Surface casing, protects all known USDWs _ _ _ NA. No surface casing to be set, 20 CMT. vol adequate to circulate. on conductor & surf csg _ NA will leave. wellbore OH............ . 21 CMT.vol adequate to tie-in long string to surf csg. _ NA 22 CMT will cover all known productive horizons.......... _ _ _ _ _ NA 23 Casing designs adequate for C, T, B &_ permafrost. _ _ _ _ NA 24 Adequate tankage_or reserve pit _ _ _ _ _ _ _ _ _ Yes _ _ _ will divert cuttings to tank via a hose.. _ 25 If a_ re-drill, has 10-403 for abandonment been approved _ _ _ _ _ NA 26 Adequate wellbore separation proposed _ _ _ _ _ _ _ Yes vertical well no deeper than 600 ft md.... 27 If diverter required, does it meet regulations _ _ _ _ .... _ _ NA Using. a rotating head to divert cuttings to tank. Common water well drilling technique, _ Appr Date 28 Drilling fluid program schematic & equip list adequate .. _ _ _ _ _ Yes _ using air to drill... common water well practice. GLS 8/7/2017 29 BOPEs, do they meet regulation _ _ _ _ _ _ _ _ _ _ _ .. NA. _ _ _ _ _ _ _ _ _ .... _ 30 BOPE press rating appropriate; test to (put prig in comments) _ _ _ _ _ _ NA 31 Choke. manifold complies w/API RP-53 (May 84). _ _ _ _ _ _ _ _ _ _ _ _ ... NA 32 Work will occur without operation shutdown. _ _ ... _ _ _ _ _ _ Yes will drill well... load with water and tog Eline, 33 Is presence of H2S gas probable _ _ _ _ .. .. _ _ _ _ _ No. ............ . . 34 35 Mechanical condition of wells within AOR verified (For service well only) _ ____ _ _ _ _ _ _ _ _ Pennitcan be issued wro hydrogensulfide measures _ _ ..... _ _ _ _ _ NA.. Yes _ None expected based on Griner 1. Endeavour. 1, & Anchor Pt 1. exploratory wells, all located within1.3 miles._ Geology 36 Data.presented on potential overpressure zones _ _ _ _ _ _ _ _ _____ _ _ _ _ _ _ Yes . None expected.. Endeavour 1 exploratory well has most corrlplflte gas curves. It 2_units (400 PPM) - Appr Date 37 Seismic analysis of shallow gas zones _ _ _ _ _ ______ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Yes _ _ _ _ of methane gas to 400' MD. 8 units (1500 PPM) methane from 400'- 500' MD,.and t3 units (2500 ppm), . SFD 7/26/2017 38 Seabed condition survey (if off-shore) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ _ _ _ _ NA........ methane from _500' - 700'._Grinerl.found 85 units (17.000 ppm) methane associated with a coal at 600' MD. 39 Contactname/phone for weekly-progress reports [exploratory only] . _ .. _ . _ _ .. _ _ Yes _ _ _ _ Sediments to 60V not expected to contain extensive,. trapping seals._ Contact P.. Mazzolini_777-8369_ Geologic Engineering Public Photos and documentation from utility locates that demonstrate successful clearance of the drill site must be provided to the Commissioner: Date: issioner: Date Commissioner Date AOGCC prior to spudding of Seaview 6. SFD oD 1 5 )2°� i I? Jlp � "■1
