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INDEX OTHER ORDER N0.2 1. January 18, 1979 Natural- Gas Policy Procedures 2. May 4, 1979 Natural Gas Policy Act 3. May 4, 1979 John Norman's Comments regarding Commission Procedures for Handling Certification of Gas Prices under Natural Gas Policy Act 4. March 21, 1979 Notice of hearing, affidavit of publication 5. May 4, 1979 Transcript of Hearing OTHER ORDER #2 (no order issued) 0 0 ~5 ~: I+ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1~ ALASKA OIL & GAS CONSERVP_TION COMMTSSTON HEARING May 4, 1979 9:00 o'clock,a.m. State Courthouse, Room 402 Anchorage, Alaska PANEL MEMBERS PRESENT: LONNIE C. SMITH HOYLE H. HAMILTON HARRY 6^J. KUGLER ALSO PRESENT: JEFF LOWENFELS, Attorney General's office. CroHServa~--o+~ ~~e. ~ lS3 ** ~~~'~ A18~k~1 4~C ~ 6:s c.~s. ~u~~rrne~EUn ~It~~ur~i R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W..3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 .~ 15 16 17 18 19 20 21 22 23 24 25 1 i P R O C E E D I r1 G S -2- MR. HOYLE: This meeting will come to order. This' is a hearing of the Alaska Oil & Gas Conservation Commission and I'm the chairman of the Commission. My name is Hoyle Hamilton. And, the other members of the Commission, seated to my left is Lonnie Smith, to my immediate right is Harry Kugler and to my far right is Jeff Lowenfels, from the Attorney General's office. The notice of today's hearing was published March 21st, 1979, in the Anchorage Daily News and a copy of the notice of this hearing will be made part of the record. .Under the Natural Gas Po1ic_y Act of 1973, the Federal Energy Regulatory Comsission, commonly referred to as F-E-R-C, is responsible for making certifications for gas well pricing. F-E-R-C has asked the States to aid them in this effort in order to more timely process the applications for certification. Sec. 530 of our Regulations provides that the Alaska Oil & Gas Conservation Commission can cooperate and provide services to other governmental agencies and we have agreed to help F-E-R-C in their gas well certification, F-E^g-C asks that we submit to then for their approval the procedures that we would follow in this process. T~?e have done this and have obtained their approval. We're here today to obtain continents on this procedure. For those of you who have not already obtained. a copy o£ these procedures, we have copies available at the front table up here. We will accept either oral or written comments today. 2n addition we will leave the hearing record open until close of business on R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W.3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 11 2'~ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 i -3- May the 14th, 1979, for additional written comments. The Commission will review all comments received and may revise these procedures.. if the Commission feels in doing so it could provide a better service to the applicants and F-E-R-C. However, if any revisions are made they must be submitted to F-E-R-C for their approval. So, I'll open the Hearing at this time for anyone who would like to come forth either with oral or written comments. And., T might ask if you have oral comments to please be seated at the table to my left where the microphone is and I would like for you to state your name and who you`re representing if you wouldn°t mind. MR. JOHN NORMAN: Mr. Chair_rnan, Members of the Commission, my name is John Norman, T"m an attorney in private practice in Anchorage anc~. I'an. appearing here this morning on behalf of AIv'_tAREX, Inc. T~?e have one principle concern with the proceedures as drafted and as approved earlier this year by the Federal Energy Regulatory Commission. This concern centers upon the present provision in the Code of Regulations, which would seen to allow operator only filings with the Commission. Inevitably there are going to be situations where an operator for reasons of its own will fail to fi1.e or will refuse to f_i1e. In such situations we feel that it's only proper that other parties with legitimate interests in wells be deemed to have standing to submit their own application. The situation, of course, is not unique to the State of .~laska. Other States have confronted with this R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 1 L~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 i -4- problem and we would urge the Commission, as I'm sure .it's going to do, to look t~ some of the experience in other States and some of the developing procedures there before it would adopt an exclusionary operator only type filing, within the State of Alaska. The regulations -- the most recer_t draft of the regulations that I°ve seen for adoption by the Texas Railroad- Commission and these may now already be adopted contained language allowing the ag non-operator relief if he's confronted by an unwilling or an uncooperative operator. The language in the Texas Regulations is contained in Sec. 2, subparagraph (a) of the proposed regulations and it reads. as follows: A filing by a non-operator must be accompanied by a statement that the operator has refused to file an application. If the operator files but does not apply for a determination in catagory for which a non-operator believes well qualifies, the non-operator may appear and .intervene in the proceedings, which may be expanded to include the additional catagory. Nora froze my understanding, this present language reflec a substantial departure from the initial draft that was circulated by the Texas Railroad Commission. In that initial draft it's my understanding that Texas also proposed to adopt a non-operator only filing requirement, but that in response to the legitimate concerns of those who would be affected by the legislation, they re-considered the matter and substituted the language T°ve just quoted, I will file with the -- the Commission sh.ortl.y a copy of my remarks and attach the -- I've got the complete text of the R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 is 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25I 1~ • -5- Texas Regulation. And, I don't -- don"t at all propose to suggest that Alaska .s in any way bound or there can't be some irnprove~ent but, I'm simply saying there is sozr~e experience in other States, and I think we ought to be cognizant of that. T'm also informed by knowledgeable Counsel in the State of Qklahoma that the Oklahoma proposed regulations permit a non-operator to file an application provided that no other application is already on file, It°s seems to rye that there is a Faay to deaf with this situation which would not burden the Commission and. would be admnistrati~el workable and would still allow a non-operator's legitimate rights to be given some --- some avenue of expression if he was confronte with an uncooperative operator or if an operator was acting in a manner that was quite different from the position of a non~operat r. Other States seem to be addressing this and I think probably the best nformatign would come from this Coz~unisson itself checking with those other States and perhaps U,~,G.S But, I simply make these points for the Coxnznttee°s consideration G~Te, therefore, respectfully suggest that ~,laska should adopt some form of_ a modified procedure different from what is stated. here that would provide for non-operator filing under certain circu~tstances. One final .comments, the drafts that T°vP seen are not codified, z"m sure that this will be done when they're put in, but,`I dust mention that for ease of studying them and later citing them and including in the administrative code that that should be done, but take it, that's something that Mr Lowenfels people will take R & R COURT REPORTERS 810 N STREET. SUITE 101 509 W.3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 ~J 1 2~ 3I 4 5 6 j 71 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 U -6- care of. Thank you for hearing me out. Tf th.ere are any questio s I'd be happy to answer them, otherwise I've got some copies of th testimony together with the Texas Regulations that I've referred o and I'll leave them here. MR. LO[n1ENFELS: Just for purposes of discussion, I have a couple of questions T wanted to ask. [?7e were not contemplating formalizing these in regulation form because this is a service which the Commission will be carrying out for FERC. And, it's our understanding that FERC. will have the opportunity to change procedures any time along the line and we don't want to be burdened nor do we want to burden the industry by setting these out in regulation form, which would create. tremendous delay if we ever had to change any of the parts of it. Igo you have a problem with that? t~~e don't ..... MR. NORM~.N: Well, T think you could argue either way, but, I think you've got similar situations in a number of Federal Acts that require some state implementation in all --- I don't know, different things, coastal, just a number of different types of things that the Federal. Government could -- could reverse field on you, but, nevertheless, just as a practitioner in the State, it's of great benefit, number one, to be able to readily locate it in some place; number two, to cite ito number three, get particular sections that are changed and instead of saying the third paragraph from the top, the fourth sentence, you .can immediately locate it. There may be some history that develops or. R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 1 n LJ 1 2 3 4 5 6 7 8 9 10 11 • 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 i _~_ these reguJ_ations so, all things being equal unless there was a strong reason not to, why, T would suggest that it be codified and placed in the Administrative Code. And, .then T think it could lend itself_ to change if it was appropriate. But, I do think that it is -- it is a regulation that if it`s going to affect rights of people that are filing with the Commission, then they"re entitled to be on notice of it. And, someone. trying to figure it out would. I think, .first go to the Statute or the Administrative Code if there were procedures. MR. L©Tn7ENFELS: ?ell, we -- ~ think the Commmission was hoping that people would go immediately to the section that requires us to -- allows the Commission to fulfill services for the Federal Governx~.ent and other Mate Agencies. Obviously, T think your suggestion is correct that they should certainly be numbered in some fashion so that we can identify it any paragraph is changed, but again, z think the Commission was thinking o.f keeping these on file and. having them available at their offices. rather than cgdfying them, Because of the fear that I have anyway, that a change would tie us up and possible affect an operator determentally because vie"d take about six months to get a regulation alteration. lion"t think that a change by FERC in procedures would, rise to the level of an ez~ergency situation for purposes of the administrative procedure act and regulations. But it"s something we certainly will,,.,. ~'~,R, NO~Z.1`~T=AIVo ~ offer this suggestion, T think It R & R COURT REPORTERS 810 N STREET. SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 I. 1~ J 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 • 25 1 • -8- could be aruged either way. En7e obviously have different perspecti but, I think the P~dministrative Code does get wide circulation. You've got everything bundled up in neat form, if you want to go the regulations of the Commission you've got them all there in one place. I have the same trouble with -- with the -- it just being made available with handout as I do with some of the Supreme Court's orders where if you just don't happen to be on their mailing .list why. suddenly you're told here's this Rule and maybe you weren't around or the mail missed you but, that's it, tVhereas if it is bound up then at least everybody knows exactly what the procedures are. But, z simply offer that as a tail end comment. I understand what you're saying too, so, Z suppose it could be argued. T~lR. ZOT~IENFET~S : Just let me ask one Tnore question, I'm not disagreeing with you by any means, 2'm -° :C"~?! curious if a regulation -- the regulation cited stating that the Commission can perform services and whatnot, if that contained an extra sentence that said such service contract shad be on file or procedures -- utilized procedures shall be on file at the Commission offices would that trigger you in so far as the Natural Gas Policy Act is a determination? I mean is it -- c~.oes a practitioner in anchorage know .that we're doing this as a service for the Federal. Government or ~.... T4]~. NORMAL: ~~ell, I think -- 1 think so. those that happen to be following it now. But, as you know, a lot of R & R COURT REPORTERS 810 N STREET.SUITE 101 509 W.3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 s, • i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 i -g_ people -- everybody is busy and they"re going to follow it wheneve they're contacted by a potential. c]_ient. And, T'm speaking now not on behalf of A:M~.i~EX..... N1.R. LOF~TENFELS: pure. MR. NORT^AN .... but, just as someon that's trying to comply with the Commission's procedures. Anc?, that might start with a phone call from gosh knows where with somebody that says we want to get in compliance and. we want to do what's necessary to perfect the filing in the. State of Alaska. in accordance with the procedures approved there. Tf you happened to know about it or called. around and you were to call why then T think there would be no problem. But, T thought your thought is an excellent one.. If there were just something there to -- in the Administrative Code to trigger by reference that copies of these things will be on file, then I think that would certainly accomplish that point. Ts there anything further, A'~ster ..... MR, ST[ITH: I'd like to point out -- I"m Lonnie Smith and. T would like to point out a couple of things in regard to your comments there, As far as our regulations go, this would be something a little bit different because we don't have the final authority. FERG has the final authority and this is somewhat different than our standard regulations, I believe. And, another aspect is that anyone that wishes to make an application will naturally turn to the Natural Gas Policy Act, which directs them to us and our agency where the procedures are clearly set R & R COURT REPORTERS 810 N STREET. SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 ~~ 1 2 3 4 5 6 7 8 9 10 11~ 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 forth and available. i -10- MFZ. N(~RI+~~AN, Well, my response to that is if you thumbed to the Administrative Procedures Act, T think a very powerful .argument can be made that you may .very well be required to state it in the form of regulations. If something that is not an internal policy of the Commission it's something that affects the general public, it tells the general public how they`re supposed to behave and that's the very purpose of having everythi in the Administrative Code. Now, T think the procedures are very ~ well known to the Commission certainly and to others that should know it, but, the Code is designed to allow just the general. publ or the operator or somebody that may be getting on the board late ready reference to these things. And, the situation here -~- real I can see where you're making your point, but, it isn't that different from the same thing that a number of other agences hatT . The State pepartment of Transportation has a number of things tha have to be chanced whenever the Federal Government changes something, hut, t~ say that you can do something with billboards and advertising so many feet just simply because it's a requireme to qualify for federal funding, but, say that we°re not going to put it in there because it's a little bit different, z don't think that really legally you can get by with. it, Z though that I think that Mr. ~owenfels znay have an excellent compromise there and,' I think if there' s enough. to put someone on notice in th.e administrative Code then- then -'- you know, that would perhaps b R & R COURT REPORTERS 810 N STREET, SUITE 101 509 W.3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAG E. ALASKA 99501 • -11- 1 sufficient. But, I -- I can see the point that you're snaking. and 2 I'm just trying to acquaint you, T don't mean to be argumentative, 3 but, T have a little different perspective. Because the private 4 'practitioner in Anchorage is working on just a whole variety of_ 5 matters and we d.on't have the every day familiarity with it that g you do. So, things that are terribly obvious to you are going to 7 have somebody scratching their ..head unless they just happen to g ask the right -- right questions. So, T think maybe the ideal g thing would be to have a reference to it in the Administrative 10 Code that would sti11 leave you some flexibility to change things 11 that are on the procedures on file with you. Anything more? 12 :~P . FiA?!!~IZTONs Z' d just 1~_ke to comment on as far 13 as having someone other than the operators submit an application 14 to the C©mmssion, we w11 certainly take your con¢nents into 15 consideration there anc~ check with same of the other States that 16 are -- have had some experience in handling these applications. 17 As you're aware of, up here we haven't even gone. through one of 18 these applications yet, and -- but, we also want you to recognize 19 that our regulations as they're setup today and the way we 20 operate -- normally operate, is through the operator. And, we 21 want to provide the service to the applicants and F-E-?Z-C, but, we 22 also don't want to place an undue burden on the Co~?mssion and 23 we wi11 take all these things into consideration before -- if we 24 decide to _revise our regal- -- these procedures or whatnot. So...., 25 NiR. NORMAN a [dell r thank you. Z can appreciate th R & R COURT REPORTERS 610 N STREET. SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 1 ANCHORAGE. ALASKA 99501 1 2''~ 3 4 9 10 11 12' • 13 14 15 16 17 18 19 20 21 22 23 24 25 1~ balance ..... i -12- MR. HAMILTON: Yeah. MR. NOR.'MAN: ..... that has to be struck there. I don't mean to say it`s all one-sided, I appreciate your hear me out. MR. HAMILTON: Okay. Just for the record, Mr. John Norman who just got through presenting his oral comments, has submitted some written documents to the Commission and they're dated May the 4th, 1979, title Comments Regarding Commission Procedures for Handling Certification of Gas Prices under the Natural Gas Policy 2~ct and this will be part of the hearing record Are there any -- is there anyone else would you like to come forth with either oral comments or written comments? Do you have any comment? MR. KUGLER: Is there anyone that has any questions at all about our procedure in any way, shape or form? MR, HAT~TLTON; Well, if not, we'11 close the commen period here today, but, as T say the record will be kept open through the close of business of 1~day the 14th, if any written comments want to be proposed.. Thank you all for attending today. OFF THE RECORD } ( FND OF THE PROCEFD3NGS R & R COURT REPORTERS 810 N STREET. SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 lu 6 II 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 . °°i 1 II C E R T I F I C A. T E UNITED STATES OF AMERICA ) )ss. STATE OF ALASKA ) i T, Rebecca Ruff, Notary Public in and f_or the State of Alaska, residing at Anchorage, Alaska, and reporter for R & R Court Reporters, do hereby certify: That the annexed and foreq_oing Hearing of the Alaska Oil & Gas Conservation Commission, was taken on the Qth day of May, 1979, becrinning at the hour of 9:00 o'clock, a.m. at the State Courthouse, Room 402, Anchorage, Alaska. That the Hearing as heretofo_r_e annexed, is a true and correct transcription of such hearing and thereafter transcribed by m.e: That I az~ not a relative or employee or attorney or counse]. of any of the parties, nor am I financially interested in this action. IN V~lITNESS ~^'HEREOF, I have hereunto set my hand. and aff_ my seal this 8th day of May, 1979. ~, Notary Public in an. f.or Alaska l~:[y Commission expires: 10-26-82 R & R COURT REPORTERS 810 N STREET. SUITE 101 509 W. 3RD AVENUE 277-0572 - 277-0573 274-9322 ANCHORAGE. ALASKA 99501 ~ 4 a • Notice of Public Hearing t STATE OF ALASKA Alaska Oil and Gas Conservation Commission Conservation File No. 153 Re: The procedure by which the Alaska Oil and Gas Conservation Commission will make determinations under the Natural Gas Policy Act for the Federal Energy Regulatory Commission. Notice is hereby given that the Alaska Oil and Gas Conservation Commission has been requested by the Federal Energy Regulatory Commission to make initial determinations of gas price classi- fications under Sections 102, 103, 107 and 108 in accordance with Part 274, Subpart B of the Natural Gas Policy Act of 1978, P.L. 95-621. The Alaska Oil and Gas Conservation Commission will hold a public hearing pursuant to the Administrative Procedure Act (AS 44.62) to present the procedures by which the Commission will make these determinations. The hearing will be held at 9:00 AM, May 4, 1979 in the jury assembly room, Room 402, of the Bonney Court Building, Anchorage, Alaska at which time all interested parties will be heard. Harry W. Kug over Alaska Oil and~Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 ~~~"`'`_'~jG ~- ~~`-`~Q ~~ ler ~Commissi Publish: March 21, 1979 ,~ `'ADVERTISING ORDER 3. R~t'EI~lING COPY NOTICE TO PUBLISHER DEPT. NO. A.O. NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING -ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART ~~. 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- MENT-MUST BE SUBMITTED WITH INVOICE. ~~ ~aZ7 VENDOR NO. DATE OF A.O. U B L Anchorage T~ i l y ~~eS:Ts i .821 'F~.• Fifth Avezzue -+ ,Anchorage, ltlaslca 99501 E F A~%. Oil & Gas Cbn~..rvatlC}21 R GCR3tt1.SS1G'7~1 ° 3001 Porcupine Drive "' Anchorage, Alaalca 99501 DATES ADVERTISEMENT REQUIRED: ~s~rC ~, , 1, THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. BILLING ADDRESS:. 5~.~ ADVERTISEMENT STATE QF ALASKA I ' A~TZC"E C)F' PiJf3LTC I1~;~.FtI~~ STATE OF ALA.. Alas3sa. Oi3. and Gas Con.~~ervation C'ission Conservation File t~~a. 153 ~> .. _- _ Re: The procc~~ure by ~rhich the Alas;-.a Oil and C~.s Canservatiari C:cu.3SiOn dill z^~ke ' deterrlir?aticans under thc~ Natural Gas Policy Act ~:r~r t11e Federal ~~ izect~latory Ckm±iissic~n. i30tice is r.,crr~~f giver. that the Al.a:~aka Oil. and C.:as CQraservatic~zz Cci aion has b~.n requested by the Federal ~~r Regulatory Ccera:~i.ssiorz to r.Ia3-~-e i.t~itial deterrlina- ' tion5 of c~a:~ mice classifications under Sectic°ns 102, 103, I07 grid 21?t3 in accarr?anc with Part 274, Sts~lx~t B of the Natural C-a5 Policy 1~Ict of 1Q78, P.T3. 95-G?.1. The Alaska C)il and. Gas Garservat~.on Ck.i..ss3.on ~rtll hvlcl a public ~hing p°Lzrsuant - to the A+3mi.nisfxative Procedure Aot (AS 44.62) to present the procedures ~y ~fiich the Cissian v~i1.l make f1?e:;e c?etexr~i.rzations. ~ hcarinc~ ~ai.ll he Yield at 9:4~C~ AM, I~.y 4, 1379 ~n the jury ass~;~krly z~i, ~'ac~I 402, of tr~ ~~, CJcnzrt ~tlaildinc7, And~.orage, Ala_~;ca at which tide all interestcxl -~xties { _ k=i11 lae heard. ,. F3arsy Trd. ~uc31c3r, Cc~a-lission ~j (1~G~t-'x (?~ tY'Ee Co"~^1~1f~S'3 Alaska Oil & Gas Conservation CctiSaion 3001 .Porcupine 3~rive, Anchorage,: Alaska 99501.::... ,_ .:Publish:: ~'k~rch 21, 1979. '' TO BE C OMP LETED BY O RDER ING DEPAR TMENT OF PAGES E NO TorAL ALL PAGES ~~ ~ ~~ ~, TRANS. DEPT. DIV. B pROG. FUNC- TION SUB. FUNC• TION OBJECT RECEIPT HWY. FUNCT. -.. PROD ECT ~. LEDG[R PER CENT OR ITEM NO. . PAG ~ I HEREBY CERTIFY THAT THE Uh ENCUMBERED BALANCE IN TH' i .v /~a d i~n/ / ~ /~. YY~~cca~~L~~"~^^++ C .~r APPROPRIATION CITED HEREON I, SUFFICIENT TO COVER THIS PUF REQUISITIO~D BY CHAS£ AND TI1AT THIS PU RCHAS IS AUTHORIZED HEREUNDER. ,. { +e....' ?V I NAI_~ APPROVAL -CERTIFYING OFFICER OATEENTERED VOUCHER NUMBER ADVERTISING ORDER U B L ~1"1C~'.U?"~Q6? r'~~.1T A'~'rg I ~?~. ~ . u';'i~t..{' i ~TT~Is1kE-' H ~rc:~ca~-a~e, ~.a~ 99501 E N~oTacE r® ~U~~~sH~~ INVOICE MUST BE iN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISE- MENT MUST BE SUBMITTcD WITH INVOICE. ~aa ~?.~~ ~e ~S ~32i~Se1ZTc'~.~1.~i]. R ~''?ISS7.C3Z1 O 30~J1 ~'Gt~3].T'~ ~i3.~>r M ?°~T1~~.0^3C?2 ~ A? ~5~~ 995 a01 !. 1'UBLISI-IE~i DEPT. NO. ~ A.O. NO. Q O' ~-' ~!~~~ VENDOR NO. DATE OF A.O. DATES ADVERTISEMENT REQUIRED: a'~ THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. .,.~~~~v.~ ,auvncaa: ~A,,~~ AFFIDAVIT-OF-PUBLICATION. UNITED STATES OF AMERICA STATE OF Alaska third piVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED Laura A. Lee WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT HE/SHE IS THE Legal Clerk OF The Anchorage Times PUBLISHED AT Anchorage IN SAID DIVISION third AND STATE OF Alaska AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED IN SAID PUBLICATION ON THE 21S tDAY OF March 19 79 AND THEREAFTER FOR ~ CONSECUTIVE DAYS, THE LAST PUBLICATION APPEARING ON THE DAY OF 19_, AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE lx 4 inches $16.80 L79181 CHARGED PRIVATE INDIVIDUALS. Laura E:. Lee SUBSCRIBED AND SWORN. TO BEFORE ME THIS 26ti1DAY OF march 1g 79 NOTARY~UBLIC FOR STATE OF Alaska MY COMMISSION EXPIRES. h'fav 1st, 19$2 PUS C ARING STATE OF ALASKA ConservafionlCmnmisston Conservotion Ftle No. 153 Re: The procedure by which the Alosko OII and Cos Conserves- - 11on Commission wilt moke tle- hrminations under the N6turol Gas Policy Act for .the Fetlerol Energy Regulatory. -Commis-_ { sloe. Is herebrgiven that ~ Oil and Gos. Cm~.._ The"hearing wWl be held of 9: ~ AM• Mov 1, 1974 In the fury assembjy room, Roorp 402, pf '~~~ qeY AlaskC:ia uil~dirl~gh, ymrON 7ntersted portles will be heord; . i _ Marry W, Kugler Commissioner ". By Octler of the Commission AlaSkcFt?JI6:Gos _ O~seavWion Commissibt 3001 Porcuaine Drive Ancfgrage, Aloska 44501 Puq: Mor. 21, 1974 ~, .,,.3~ ~~~~:~~1'~~g REMINDER- ATTACH INVOICES AND PROOF OF PUBLICATION. ~3 1 l~ s ~` /.. COLE, HARTIG, RHODES, NORMAN & MAHONEY HOYT M. COLE A PROFESSIONAL CORPORATION ROBERT L. HARTIG KOOIAK:OFFIGE: TAMES D. RHODES - ATTORNEYS AT LAW 202 CENTER AVE., BOX 503 ` JOHN K. NORMAN SUITE 201 KODIAK, ALASKA 89615 ROBERT J. MAHONEY_ (907) 486-3143 BERNARD J. DOUGHERTY 717 K STREET (907)'486-3144 MICHAEL W. SHARON ANCHORAGE. ALASKA 99501 C. WALT EBELL __- (907) 274-3576 G. RODNEY KLEEDEHN J. MICHAEL ROBBINS ROGER H. BEATY May. 4 , 19 7 9 STEPHEN D. ROUTH WEV W. SHEA ' _......_.... EDGAR R. LOCKE ~c~+~p ~~r' v C. WALT EBELL ~ ~ ~ ~. ~ Y ~ ~ A~lY~i1S~Zlge SPENCER C. SNEED OF COUNSEL• ^Ot~1 './////~~~..y~©7. G. KENT EDWARDS t~AY ~ ~ ~~~~/: 9y~~~/~~1(-~-f--- ALASKA OIL ORd C"A S Alaska Oil & Gas (,~~ns. t,orr-mtssf CONSEROtA~'~2N ~- The Honorable Chairman AtlChura$N Alaska Oil and Gas Conservation ...,r....;...,...EX6iI~IT - Commssion ~ ~~'3 f 3001 Porcupine .:Drive ~~~ ~'tLE t .Anchorage, AK _99501 .~.......-.: Re: Comments Regarding Commission Procedures for. Handling Certification of Gas Prices under Natural Gas Policy Act Mr. Chairman and Members of the Commission: My name is John Norman.- I am an attorney in`private'practice in Anchorage.,.. Alaska, .and am appearing here this morning. on behalf _ of Amarex,'Inc., P. O. Box 16.78, Oklahoma Ci y, Oklahoma. We have one principal concern with'the Commission's procedure as approved by the Federal Energy Regulatory Commission. earlier this year. Our concern centers upon the provision in the proposed procedures that allows filings to be made. only-by the operator of the well. Inevitably there will be ,situations where the operator, for reasons of its own, will fail. or refuse to file. In such a-situation we feel that it-is only proper that other parties with a legtimate..interest in the well have standing to submit an application...,. Alaska Oil and Gas Conservation Commission May 4, 1979 Page 2 The situation, of course, is not unique to Alaska, and we therefore urge the Commission to look to the experience and the procedures developing in other states .before adoption of an exclusionary "operator only" filing requirement in Alaska. The regulations which were proposed for adoption by the Texas Railroad Commission specifically contain language allowing an aggrieved nonoperator some relief when confronted by an unwilling. or uncooperative operator. That language is contained in Section .002 (a) of the proposed regulations and reads as follows: A filing by a nonoperator must be accompanied by a statement that .the operator has refused to file an application. If the. operator files, but does not apply for a determination in a category for which a nonoperator-believes the well qualifies, the nonoperator may appear and intervene in the proceeding, which may be ex- panded to include the additional category. I am further told that the proposed language just quoted reflects a substantial departure from the initial position of the Texas Railroad Commission which had been to allow operator only filings. Attached to these remarks is the text of the Texas proposed regulations containing the language just quoted. • • Alaska Oil and Gas Conservation Commission May 4, 19.79 Page 3 I am also informed by knowledgeable counsel in the State. of Oklahoma that Oklahoma's proposed regulations also permit a nonoperator to file an application provided that no other applica- tion is already on file. It is respectfully suggested that Alaska. too, should make some provision for similar nonoperator filings. Finally, one comment as to the form of the proposed procedures. The drafts I have seen thus far are not codified as regulations. The proposed procedures should be put into proper. form so as to be publishable in the Alaska Administrative Code, with appropriate section designations, so that they can be located and cited readily. I am sure that you have planned that this be done ultimately, but I mention it because the drafts sent to me have not yet been so codified. Thank you for your attention, and if there are any further .questions or requests for information pertaining. to the comments I have made, I shall be pleased to respond to any inquiry from the Commission. JKN:bw Enclosure P. r10 KLJE-A '~ Railroad Conunission o~;'.xas ~05I.02 ACCEPTE® ~~~e ~ ~ ~' .t,r.+i ~~ ~ I . C.t? Pt1.~ ~--.~ Natural Gas Policy Act (NGPA) Determination Procedures 051.02.03.001-.004 Page ~1 of 13 . rv. ~ R~~k~ ~'ii~ ~ ~ y • s i ,eras. t,o~fi~~~ipn ~It-ahvtayM ~ommissiori of Texas is proposing to adopt Rules 051.02.03.001-.004 governing procedures for the determination `of well categories under the Natural Gas Policy Act of 1978 (NGPA). These rules are being proposed to replace those adopted on November 27, 1978, with several important revisions. As were the emergency rules, they are designed to implement and clarify applicable Federal Energy Regulatory Commission regulations governing the classification of gas wells under the NGPA, with the minimum possible imposition of a regulatory burden. Staff personnel of the Railroad Commission, the General Land Office, the University of Texas System, and the State Comptroller of Public Accounts have determined that the fiscal impact of these procedures for state government will be measured primarily in the cost of administering the program,. since the apparent outcome of category. determinations under the NGPA will be a maintenance of or increase in present levels of tax revenues and royalty income. ~lhile tl:e administrative cost to the Commission cannot be precisely determined without further experience in processing actual determination requests, the Commission staff has projected an annual estimate in excess of $558,000 for fiscal year 1980 and $465,000 for fiscal year 1981. The staff of the Comptroller has estimated an annual cost of $67,000. The General Land Office and University of Texas System do not project any administrative expense associated with these rules . Public comment on .proposed Rules 051.02.03.OOI-.004 is invited. Interested•.persons should submit their comments in writing to James P. Grove IV, Assistant Special Counsel, Railroad Commission of Texas, P.O. Drawer Railroad Comnission~I'exas ~ ~ Page 2 of ~.3 Well Classification 051.02 12907, Austin, Texas 78711. Comments will be received until 30 days after the C?_ z~..~~~~ publication date. The proposed effective date of the rules is April 15,. 1979. THESE RULES ARE PROPOSED ONLY, AND NO CHANGE SHOULD BE tifiADE IN NGPA FILINGS UNTIL THE COMMISSION HAS TAKEN FINAL ACTION. These rules are promulgated under the authority of TEX. REV. CIV. STAT. ANN. art. 6252-13a (Vernon Supp. 1978-1979), Title 3, TEX. NAT. RES . CODE ANN . (Vernon's 1978) , and the Natural Gas Policy Act of 1978, Pub. L. No. 95-621, 92 Stat. 3350. .001. Definitions. (a} "Commission" and "RRC" mean the Railroad Commission of Texas . (b) "FERC" means the Federal Energy Regulatory Commission. (c} "Operator" means a .person, acting for himself or as an agent for others and designated to the commission as the one who has primary responsibility for complying with its rules and regulations in any and all acts as may be permitted, required, or prohibited herein. (d) "Non-operator" means a person, other than an "operator" as defined above, acting for himself or on behalf of others, who sells natural gas,. from a well for which a determination is sought, pursuant to a .contract that does not cover the- sale of the natural gas attributable to the interest of the "operator" in such well. (e) "§§ 102, 103, 107, and 108" mean those sections of the Natural Gas Policy Act of 1978 (NGPA) . .002. Application Procedure. <a) All categorical determinations will be initiated by an applicant (operator, or non-operator where the operator has not filed an application) with Railroad Col-emission Texas Well Classification 051..02 Page 3 of 13 the filing of the form(s) prescribed by the FERC and RRC form F-1, and will be made on a wall and completion location (perforation or other applicable point in will bore) basis. A filing by a non-operator must be accompanied by a .- statement that the operator has refused to file an application. If the operator files, but does not apply for a determination in a category .for which a non- operator believes the well qualifies, the non-operator may appear and intervene in the proceeding, which may be expanded to include the additional category. Only one copy of the application (F-1 and FERC forms) and supporting documents shall be filed. An application may relate to a new determination or a request for a change affecting a prior determination. An application affecting a prior determination shall refer to 'the docket number of the prior proceeding. An application may be amended or withdrawn by the applicarYt at any time prior to a commission determination:. The commission will not forward affidavits required to be filed directly with the FERC in support of interim price collection measures . ' (b) The application will contain the information necessary to support the categor(y)(ies) sought by the applicant including, but not limited to: (1) -The name, address, and operator identification number of the applicant; . (2) Well and completion location information to include location, RRC identification number (gas- well TD number or oil well Iease and well numbers}, field and/or reservoir designation, RRC District number, the name and address of the operator where an application is filed by anon-operator or the name and .address of .the non-operator(s) where an application is filed by an operator; {3) A designation of the categor(y)(ies) applied for and the specific NGPA sections relied upon; Railroad Commission of ~as ~ Page 4 of 13 ;, well Classification ~ `~ 051.02 (4) The supporting documents designated in .003 herein and in applicable FERC regulations as minimum requirements for each category applied for; (5) Identification and addresses of purchaser(s) of natural gas from the well for which a determination is sought, and, where state or school Iand mineral interests, as specifically designated by the General Land Office or the University of Texas system, are involved., that information; . (S) A certificate of service indicating .that copies of the .application, consisting of the completed FERC form(s) and the RRC form F~l less required supporting documents, have been served by the applicant upon the identified purchaser(s) of natural gas, and. where applicable, upon the General. Land Office and the University of Texas system, and upon the non- operator(s) as defined herein by the operator filing the application or upon the operator by the non-operator as defined herein, where the non-operator files the application. A form supplied by the RRC may be used for this purpose. (c) The outside cover of the application and all correspondence dealing with these rules and determination requests should be clearly marked "NGPA," and directed to the commission at P.O. Drawer 12967, Capitol Station, Austin, Texas 7II711. Filings will. not be accepted at .District Offices . (d} In the event that th,e FERC modifies any of the .minimum filing requirements,, the commission may take such 'action. as necessary to ensure .that applications pursuant to these rules comply with such revisions. (e) If a required Commission form is the successor to an earlier form or forms, the predecessor form(s) may be submitted. If the .application or completion report cannot be located in the files of the applicant or the commission, the presence of the subject well on the commission's proration schedule may be used as evidence of such application or completion. ~~ Railroad Commission o -°Cexas Well Classification 051.02 .-~ Page 5 of 13 .003. Documents Supporting Application . (a) General Instructions . The documents in this section are the minimum required by the commission in support of a request for a categorical determination. All applicants must comply with the. minimum requirements imposed by -the F£RC, as those requirements are more specifically .defined herein. Additional support may be required by the commission in the notice of . hearing, at the hearing itself, or by other means.. If the applicant is required to furnish a copy of a document from the files of the commission, and if such document was originally supplied to the applicant by the commission, the .applicant may comply by supplying a reproduction of the commission furnished document from his files. Except as specifically provided herein, all copies of commission documents required must be from the official files of the commissions. An applicant may submit true. and correct copies of the W-1 (Application to Drill, Deepen, or Plug Back), the current G-1 (Gas EYell Back Pressure Test, Completion, or Recompletion Report) or current W-2 (OiI Well Potential Test, Completion, or Recompletion Report and Log), G-10 (Gas Well Status Report) or W-10 (Well Status Report (Oil)), P-1 (Producer's Monthly ..Report of Oil Wells) or P-2 (Producer's Monthly Report of Gas Wells), and the front side of the P-7 (Application for Discovery Allowable and New Field Designation) previously filed with the commission, accompanied by a statement that such copies are true and correct copies of the required commission documents filed by the current or a previously designated operator. The commission or an examiner may, where deemed appropriate, require certified copies of the required commission documents to . be filed in lieu of this provision. Any copy supplied by the applicant from his files must be legible. 'Railroad Commission 'of ~as ~ gage ~ of l~ . dell Classification 051.02 (b) I~'e~cv Gas Determinations Under § 102. (1) Requests for a determination under § 102(c)(1)(B), based on a claim of horizontal or vertical- separation, must contain, prior to hearing, .the RRC form F-1, copies of the ti^I-1, the current G-l or W-2, as applicable, the FERC form(s) prescribed, the oath prescribed by FERC regulations containing each of the elements therein in the format indicated, a map or plat covering at least 2.5 miles in all directions from the well for which the determination is sought on a scale not smaller than 1" :4000' , wifih all well locations therein shown, and an affidavit that the map and well locations thereon conform to those reflected in available public records. Tf any well or completion location is shown within 2.5 miles of the applicant's well, the application shall contain a list of all such wells from which any production occurred between 1/1/70 and 4/20/77, indicating for each such well the deepest completion reflected by the applicable completion report in the files of the com~-nission, and the identification or wall and lease number together with . the oath required by FERC regulations. 7f a directional .survey was required to be filed with the. commission on the well subject to this determination, a copy of the survey from the commission's files shall be included for the well completion .in question. An original copy of the survey prepared by the surveyor or service corripany may be submitted in Iieu of a copy from the commission's files.. (2) An application for a determination under § 102(c)(1)(C) shall include with the RRC form F-1, copies of the ~y'-1, the current G-1 or V~-2 as applicable, the FERC forms} prescribed, the oath prescribed by FERC regulations containing each of the elements therein, in the format indicated, the geological information required by the FERC accompanied by a statement as to whether the information provided is all that is reasonably available, and a copy of the order or notice of commission action in the prior commission proceeding ' Railroad Corrr,1ission ~~'exas Page 7 of 13 Shell Classification 051.02 that determined the nz~v reservoir and/or r_ev field status. Copies of the neT,v field application (P-7}, accompanying plat, and complete t~,~ell log from the files of the commission, as well as the aath required by the FERC to negate the behind-the-pipe and withheld gas exclusions, if applicable, . shall also be included. An original copy prepared by the logging or service company of the complete well log .may be submitted in lieu of a copy of .the log from -the commission's files. Tf a directional s urvey was required to be filed with the commission on the well subject to this determination, a copy of the survey from the commission's files shall be included for the well cor.~pletion in question. An original copy of the survey prepared by the surveyor or service company. may be submitted in lieu of a copy from the commission's file. ' (c) New Onshore Production ti`lells Under § 103. Any application under. this section shall include the RRC form F; 1, copies of the ~~l-1 and accompanying plat and current G-1 or W-2 as applicable, copies from the files of the commission of any orders in rule 37 or 38 or other proceedings which modify the otherwise applicable proration unit, and copies from the commission's files of the current Field Rules (Temporary or Permanent) where in effect. If an application involves a second well on a proration unit or any other circumstance requiring a .determination under § 271.305 of the FERC regulations, the applicant should clearly set forth . the information required and request such a determination. The applicant shall also provide the FERC form(s) prescribed, the oath prescribed by FERC regulations containing each of the elements therein in the format indicated, and any evidence or statements required by FERC regulations with respect to a new well drilled into an existing proration unit. The location plat. accompanying the W-1 must reflect the subject well and all other wells within the proration unit in which the subject well is located. If a directional survey was required to be filed with the. commission on the well • P.ailroad Corr~-rission ~ exas Page 8 of 1 Well Classification ~ ~ ~;~ ~ ' 051.02 subject to this. determination, a copy. of the survey from the commission's files shall be included for the well completion in question. An original copy of the survey prepared by the surveyor or service company may be su'mitted in lieu of a copy from the commission's files. (d) High Cost Natural Gas Under § 107. An application under this section shall include the RRC form F-1, copies of the t-'1-1 and currant G-1 or `~- 2, as applicable, the FERC form(s) prescribed, the path prescribed by FERC regulations containing each of the elements therein in the form indicated, and a copy from the commission's files o:f the complete well log. An original copy prepared by the logging or service company of tha complete well log may b2 submitted in .Lieu of a copy of the log from the commission's files. If a directional survey was required to be filed with the commission on the well subject to this determination, a copy of the survey from the commission's files shall be included for the well completion in question. An .original copy of the survey prepared by the surveyor or service company may be submitted .~ Iieu of a copy from the commission's files . (e) Stripper `~~ ells Under. § 10II. An application under this section must include the RRC form F-1, the G-1 or W-2, as applicable,. the most recent G-i0 or W-10, as applicable, the FERC form(s) prescribed, the oath prescribed by FERC regulations containing each of the elements therein in the format indicated, and a record of any production including crude oil production for oil .wells during the preceding 12 months , from the commission's production ledger or the P-1 or P-2, as applicable. The applicant shall also furnish the statements concerning the production and non-production days .required by the FERC, including the dates of the production period, and the 24 month inventory required by FERC regulations . zn the event an applicant seeks a determination on a field basis for .multiple well casinghead .production, and an allocation of : Railroad Commission ~"exas Well Classification -051.02 i Page 9 of 13 production based on a means other than a per well average is sought, the commission will- conduct a separate hearing to determine the proper allocation of production and the NGPA category qualifications. For wells from which an increase in average daily production above 60 Mcf is alleged to be attributable to an enhanced recovery technique or as may otherwise be permitted by FERC regulations, appropriate supporting evidence as prescribed by FERC regulations is required. The applicant shall comply with any requirements for future filings imposed by the FERC. .004. Commission Action on Applications . (a). Upon receipt of an application, the commission will assign a docket number that identifies the case as a NGPA category determination and provides any other necessary information. All further correspondence must include this docket number. A notice of receipt identifying the operator and non- operator(s}, well, and category determination(s) sought, together with the docket number, will be sent to the operator and non-operator(s) in each .case. An examination will be made to determine the nature of the categor(y)(ies) sought and ensure that the minimum requisite documentation is attached prior to • issuance of a notice of hearing . In the event the requisite documentation is not enclosed with the application, the applicant will be notified and required to furnish the additional material prior to issuance of a notice of hearing . Each Friday, notices of .hearing will be issued for those complete applications received during that week until 5 p.m. Thursday, setting a hearing date on .either a Tuesday or Wednesday of the second week following, unless a change is necessitated by a holiday. Assignment of the date shall be based on an appropriate division of the total completed applications received. Where the commission deems it necessary,. other dates may be set for any of the Railroad Commission of ~as ~9e11 Classification ,_ 051.42 Page 10 of 13 ' proceedings herein. The notice of hearing will be sent to each person whom the applicant has notified, as well as any other person the commission deems necessary, and will also be made available. in the office of the commission secretary . The notice shall provide that pzrsons with a justiciable or administratively cognizable interest may appear and intervene at the hearing. A minimum of 10 days notice prior to .the hearing will be provided consistent with art. 6252-13a, TEX. REV. CIV. STAT. ANN. (Vernon Supp. 1978-1979). (b) Although an applicant is not normally required to appear at the hearing, an appearance may ba required in any case. In the absence of intervenors, dockets may be handled without sworn testimony from witnesses at the hearing on the basis of the documentation filed in support of the application. If required by the exa-miner or as a result of the filing of a protest, an evidentiary hearing with sworn testimony tivill be required to complete a record for the determination. In such cases,. the areas of additional required proof include, but are not limited to, the following: (1) New gas determinations under . § 102(c)(1)(B) where horizontal or :vertical distance is an issue: (A) The accuracy and authenticity of the map or plat presented; and (B} The accuracy of any representations concerning the location and production status of wells and completion locations within the 2.5 mile radius . (2) New onshore reservoir determinations under § 102(c)(1){C) where the affidavit required by the FERC is inadequate to negate exclusions: other pertinent evidence bearing on the exclusions . {c) Dockets in which an intervention in protest is entered prior to or at the scheduled hearing will be recessed until Thursday or Friday of the week in ~, ,' . ~ Railroad Com.~nission ~~`':'exas . Page li of 13 . Twell Classification 051.02 which they are scheduled, at which time the hearing will be conducted. If the applicant did not appear initially, the examiner ~~1ill notify him that an inter- vention has been filed and that. the hearing has been recessed. Failure of the intervenor/protestant to appear at such hearing `Where an intervention in protest is entered will be deemed a withdrawal by the intervenor/protestant. An intervenor/protestant will be allowed to participate in a proceeding pending a final ruling on the intervention by the commission. A ruling on the interventian in protest shall be made in the final commission order. {d) All .cases heard in a given week in which a waiver of proposal for decision (examiner's initial decision} on the reverse side of the commissions form F-1 is executed, if determined to be complete, ~{7i11 be posted Friday of that week for consideration by the commission in conference no sooner than the second Monday follo~~ring. This posting will also include those protested cases that can be ~ completed in the week they era heard, together with any remaining cases previously completed by an examiner. Where a waiver of proposal for decision is not filed, a proposal for decision shall be issued by the examiner within such time as he may designate at the close of the hearing. Exceptions to the proposal for decision may be filed by any party or intervenor/protestants • :within 13 days after service of the proposal for decision, and replies to the exceptions may be filed within 18 days after service of the .proposal. Exceptions and replies must be served on all other parties and intervenor/protestants and be received by the commission ~rrithin-these times in order to be considered. When the time for replies to exceptions has expired the case will be posted for consideration by the .commission in compliance with the procedures set out above for unprotested cases . (e) Unprotested dockets with waivers of proposals for decision will be consolidated for presentation at conference and the entry of a single commission :. Railroad Coml~nission`~`~'e~cas ~ Pa a 12 of -13 g ,.Well Classification 051.02 order. Protested dockets and those involving proposals for decision ~,~rill be consolidated to the greatest extent practicable.. (f) In the event a person v~rith a justiciable or administratively cognizable interest was not given notice prior to thQ open meeting notice, he may file a written motion in interventior_ by the date of Open 1!/teeting shoring good cause for the commission to grant the intervention, remand the proceeding, ar take other appropriate action.. The commission may rule upon such motion in the manner it deems appropriate. (g) Upon entry of an order by the commission, any party or intervenor/protestant to -the hearing .may file a motion for rehearing within 15 days. A reply thereto may be filed within 25 days after service of the order by any other party to the hearing. Motions. for rehearing and. replies thereto must be received by the commission within thzse times in order to be considered. The commission may grant rehearing, deny the motion, or take no action, in , which case the motson shall be overruled by operatian of iaw 45 days after the entry of the order. (h) Within 5 days after the last day. for filing a motion for rehearing or, if such a motion is filed, within 15 days after it is denied or overruled by operation of law, the commission shall transmit by certified .mail or other appropriate means to the FERC a copy of its order of determination, together with the record on which the .determination is based. Notice of the. transmittal grill be given to .the applicant. (i) In the event that a commission determination is reversed by the FERC, an applicant may .file a new application based on additional or supplemental evidence in support of the determination sought, malting reference . to .the previous docket number. If the FERC remands a commission. determination, notice of .the remand will be sent to all those listed in the original .r. ~ Railroad Commissioe.cas ~~ Page 13 of 13 Well Classification 051.02 application and to those later peri:utted to inter~,~ene. A hearing on remand will be scheduled at the earliest practicable time. Issued in Austin, Texas, on February 20, 1979. RAILROAD CO~Ii.ISSION OF TEXAS CONP/i IISSIONER ~~ ~~~~ CO~vIISSIONER ,. . . ... :- r ~~; s . . p~.4~• °6.s~" '. .. ,, , PGA . • ..y. , y+ '~,. ~ ~';~.~•~.... J kwT . • ~ ., .,:~ •:~:• ~. .. i Natural Gas Policy Act Determination Procedures. • This report is filed with the Federal Energy Regulatory Commis- sion (FERC) by the Alaska Oil and Gas Conservation Commission (Commission) in accordance with Section 274.105 of Subchapter H - Regulation of .Natural Gas Sales under the Natural Gas Policy Act of 1978.. It should be noted that this report is to replace the report f filed by the former Oil & Gas Conservation Committee with FERC dated December 11, 1978. The Commission is composed of three commissioners and their staff and has the authority to make 'the certifications as .requested by FERC and will do so upon receiving applications. Applicants shall use the FERC form 121 in applying for price class ific~tion under sections 102, 103, 107 and 108 in accor- dance with Part 274 Subpart B. Filings shall be in duplicate and shall only be made by the operator of the well.. The opera- . for is requested to file all pertinent records as part of the application. Applications shall be made to: Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 With each application the operator shall include affidavits of mailing notifying all working interest owners and parties to the gas purchase contract that an application for a certain category determination is being submitted. Upon receipt of an application, the Commission will acknow-ledge the receipt in writing to the operator. The application will be date stamped, a file prepared and a number assigned to the file. The Commission will advise the operator in waiting if further information must be filed. The Commission will give no notice of the filing of an application. The Commission's .engineering and geological staff will review the application and accompaning documents as well as the rec- ords on file with the Commission to evaluate the filing. The Commission's records contain such data as the Permit to Drill or Deepen (Form 10-401), Sundry Notice and Report on Wells (Form 10-403), Monthly Report of Drilling and Workover Opera- tions (.Form 10-404), We11 Completion or Recompletion Report and Log .(Form 10-407), records of production, directional surveys, survey plats and well logs. If the Commission receives a written protest to an application within 15 days of its filing, the Commission shall hold a hearing. The notice of hearing shall- be published in an appra- priate newspaper at least 10 days prior to the .hearing. date. The hearing notice shall provide the subject of the hearing, • the date, time and place of .the hearing. Any person wishing to testify or make an oral or written statement will be permitted to do so. Within 30 days following a hearing the Commission wil 1 make known its determination .; Lf no protest is received, the Commission will process. the application without a hearing. The Commission's determination will be made after reviewing the engineering and geological staffs evaluation of the filing and any other data the. Commission feels necessary. The Commission will give written notice to FERC of its determination in accor- dance with Section 274.104 and also to the operator. The Commission :will also submit to FERC a copy of the application and records filed by the operator and a .copy of the hearing record if a hearing was held. Protests of the Commission's determination should be made. to FERC. Submitted on January 18, 1979 flRIC,(~AL SlG~~~fl BY NflYLE H. H~~E~IITfl~~ Moyle H. Hamilton Chairman Alaska Oil and Gas Conservation Commission. -2-
