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Alaska Oil and Gas Conservation Commission
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state of Alaska
Department of Natural Resources
Di vision of r~1ines and Miner-als
P. O. Box 1391
Juneau., Alaska.
Emergency Order no. h
þlarch 18, 196<>
By the Di l"lision :
An emergency is hereby decJ.ared to exist which requires approval of the
Division :for an exception to Section 2061..1 of T1Ue lll~C regarding well spacing.
Sta.nclard Oil Coape.ny of California has propos~d dr1l.l:lng Soldotna Creek
Unit Well!fo.. 32..4 to the approximate center or sw/4 D/l~ of Section 4, T.1N R.9W,
Seward B and 1tl, 'thereby locatinatha.t well in the same quarter section with sCtJ _11
10. 41-4. fhis vUlnot CG'Ç)ly Witt! the weUapae1ng æquil~n'ts of U MC 2061..1.
'!he' p:ropased location i,.ne:ee,.I8l7 to eoDfOl14 to the 160-acrewU $pacing »et_m
eøt$b11sbed in tbe aQJOÙ'11n¡ SWn$o~ rH.".!" Unit. fJ!be'~r~,tor controlaall lease.
in both tUt1tø c.n~rned. I:tIm.ed1a:tesctiœ1ønec..s8.r1 toel1miMte the 'expense of
an ið1erig81\Ù em- \I The Qpe~tor -~$ that the, eont1nua.nœ 'oft- dr1U1Ðígof
Scu 32-!~ v:1l1 bea""adeat ~poJ).tMdec!a~mlo:t tt. !J1v1siQnat tJJø8tt'baequent
1."'qu1~..dbe_ingon the .tter.
fhe l\1equ.e:lt øt ,S~Ol1 'C~1 otCa11tœ'111ato drUlS,OU 32'~~ 't$ ,tlie
~pprox1riat. Qel1ter olsw/4 Blkof Se,ctlœ 4~'f. '11 ft.SlI, ~Jeward B .uå K,is h~æ1:>y
aJProvea. ,toJt'Q¡,~...,cf 1,; ~$ftOll tbea'bove ð&te: .
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DonaJ..d D. Bruce, Pe-i.;roleum Geologist
D11lt.ølon . of fIft_8_<lt~ßœ:t"IJ..s
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tape I"ecording transcript. of the public hearing held by
the Division of Mines and IUnttral. of the Alatka Dep.1:'tment
of Natur.l a.eourc.. at 329 '.COM Avenue, ARchaE'4,., Alaeka,
at 10:00 a.m,., April i. 1960.
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CoRd_tins the hear11l1 wen RichaJ:d V. Mul'phy. 'etrol.. lqiDeer for
the 81,,18100 of MiD.. aad Hineral.. Donald D. Bruce, Petrol.ua Geololi8t
for the Din,ion of H1ae. aDd JU.ø.era18, aa4 Jo8.,h Rudel, Þpre8entative of
the State Attome, General'. Office in Anchor-.e.
Att8Ddiq the heariD¡ were:
Mr. J. T. Crooker aad Mr. D. Cand.chael. It"'ar. Oil COIIpaay of
California.
1tE'. Karolet Lt-. Union Oil Cempaay of California.
Hr. ,. r. SolI..., H8ble Oil ... I.elinin. eo...y.
.. . J... Wyl1e, We.ten. Gulf Oil Coa9aø.y.
*.1. J. .'1- "Mr. I.. W. 'hoeuk~fOh10 Oil C.,..y.
Mr. B. e.0,"..8. Coatl.M1\t41 Oil CoIfan1.
... C. """80.. AMbo..- .,,"1at.Ptál tahi.. Coa9-' .
Mr. J. I. "'.10'. Al.Jr..e..uti.. 8."t.'~-,..
The he...iDlwucal1e4to 0"""":
Hr. "'1\,. .."fb. .t~..torof the Al.'k.a, »lvi'toa of IUn.. .8ac1Mt:ner ell, .
lit. J.' .A.. W111t_.... dul, autho....... th-. foll_tDI..""'.' fQr c.a-
4_tof thie ...i8.: ... ....14 I....e. r~Þ:ol._"'loI1.t, I.ef )f8iK,
*' .J...,h"", 1"'..'..",*1"801."8 ,8t.t.At~.ra.,. _1'81'. off toe in
Auu*,.....4 1Ir.' Bihar. ,. *'Ph,. '.tl'~l- ",1......8.0,£ ....
!ht. ..,t8' i. HtDl hele1 ,p..._t to tbe ."lic.t~aft.led, '7 the
It""'t4 Ofl ",....,Cal.(fon18 .. .ltøeh ,18. 1'60, few .. _ceptf.oD, to
øecttoR 2O61.10! !tete 11,.u.c to... the '~1111aa of the Iolf1otu.Creek
.il ..11 Ie. 32-4 to be ."tt_eli. t../4 Ul4 olS..titolt 4. !.'I..a.,V.,
.WI«. .' ,
Nblieatt..f t"','. ht8tq app.ar" ia, thet.sa1 .tic,.. ..ct,ioa
of lIotbl...1 ...,ap,... eft Mueh 22.. 1961. .
'.r ~b.e "'.co.. X ,.11 r.. th.."lieati.. tor _uta¡ of the Itad...
Oil CoIIpaayo,f Calt!oI'Ua. copy ea ft1. with the 011..4 o.t Section iofthe
Dlvi,ioaof "..e.4 .....81. ...
Hr. Hut:phy I'ead the ..,It.atto,, referr" to :18 the !Weeedi. ,a1:ap.,h
which þ. attøhed hereto'.
Mr. Murph)' - "SOCAJ.'. application refer. to a verbal authorization to
CO8IeDce drilling Soldotna Creek Unit well No. 32-4 and this authoriza-
tion va. liven by _raenc)' Order No.4 of the Alaaka Department of Batural
a.lources."
Mr. Murphy read Emergency Order No.4 which is attached hereto.
Mr. Murphy - "Hr. Crooker t would you like to read what you have prepared 1"
Mr. Crooker - "Mr. Chairman. member. of the Industry. and members of the
Pre.l. Mr. Murphy baa read our request for exception which 18 substantially
88 1 have prepared here. I 418 presential to you this request for the ex-
ception to the well spacing regulations which bas a..p attached to it.
lbowlDI our proposed 160 acre spacial pattern and our proposed location
which will correapoad to the 160 acre *pacinI patten of 32-4. I believe
the realone you have read 8ubstantiate our reque.t to drill this location
and I wiah to aak Jour pentf.8lioft to proceeel. with the dril11nl of this well
a. propo8ed.1t
Mr. Murphy .. "Permi.atou to continue to drill wa. livea 1n the emerssney
order continl-DtoR the deci8ion. Thi. up 18 available if anyoae wish..
to look at it. On the map it show. where theSoldotna Creek ....would
8ayo.. lit. to look at it?"
Mr. 8o11ar. - "a, do.'t we wait till let."""
Hr. Murphy- "All r:l.lht, .11thia will 'be .".ilable for .._f.aation after
the h..rins- Incidentally., 811 of our he.rinse are Oft public recø-rd and
any t1- you would lib to read the traucript OD public heart.... pleaae
feel 11'8. to cto 80. Have you auy que.tiouI, Hr. lucid?"
Mr. bdd. "One question, I 'believe 1t 18 in tbe baulatioa8 that when you
drill off patteI'D, tbere 18 . ,rov:l.8:1.0. fol' adjustMnt 0.£ procluction. I
don't knowwhethel' that baa be_conatdereel by any of the applicants."
Mr. H\lrphy .. ny... 2061.4. 1 will read that for tho.. of you who do not
have a copy. 'If. after notice and hearing,' which :lucideQt.11, appliea
to 2061.3. which ..,. that upon request of an opeZ'ator. . h.ar1ftl ie held
for 8paciqcl1ffere.t to the 160 acre Ipaciu¡ .. .et out in the aeplat:Lou
and 2161.4appl1.. to 8ubaequentbeu1ql. in other WOI'dl. 18 1IlOnthe later.
At any rate it 8a)'8 'the Co_i..ion .,enter: &Q order pemittit\1 the well
to be drilled at a location other thaa that pre.cribed.- aball include
1e 8uch or4er lu1table prov1a:Lon8 to preveatthe production froathatw.l1
of I8Ore than ita jult and equitable share of the oil .act ... :1. the pool.'
I bel in. that :1.8 what Mr. aucld t. referrlns to. ADy cO8ent8?tt
Mr. Bruce ."1 believe we discus..d it. that if the well va. drilled aDd
coat1.tad that the two well. ahoulcJ not be product". at anyone t:l.ae."
ì '. '
Mr. Murphy - "The decision will be made in 10 days at any rate and will be
published in the papers. The order a have to be published, do they not?"
Mr. Rood - "Yes in the Leaal...."
Hr. ",rphy . "Y.., in the Lesal Notices. Are there any questions OJ' cO8I8nta?"
Mr. Sollarl - "I can not understand the reason why you would try to restrict'
the production 1n thole wells at all."
Mr. Murphy. '-who laiel we are 'In
HI:'. So11arl ."Nobody. There 8e... to be some queltioD coneeruins it."
Mr. Mgrphy . "There might be, Y.'. the deci8ion will be Hr. 111.111818'
hew111 receive a tranøcriptof this he.riDS- They have their own legal
coUD..I dowthere and our authority. Mr. Bruce.. t Mr. ludd t. and IÙne
will be only advi.lory."
Hr. aoder1ck .. "1'b.atsame question.:ame to my nd.nd. he 8a14 that they would
not produce one well if they were producing other.."
.. Murphy - "'!hat wa. "ileu...."1
*' . B.odel'ick -"V.. this forcoGe-nat ioft re.,oD8. you -- ,n
H1:',. Hul'pby .1'Ho. the ItDe of reasouins m1sht be thi8, if we allowed SOCAL
'to p1\'oduce both wells from this quartersect1on. it m1,aht be coaa:tdel'ed on
some.othel' operator's .part that they a1:'e receiving aD un.qual ,hare frøm
that pool 81DCe the other wells are under 160 8CI'. 8,ac1DS. AI I ea1d. OUI'
superior. will have to cleo14. that. II
Ht'. Ioder1ek .. "You mean otÞ..e1' operatore with lea,..ia the Unit?"
Hr. Hurphy .. "No, ope1'ator8 :1.0. the St.atea:Llht 001\814el' that lOCAL would
be allowed to produce, well, its juat an un.qu1tabl.~unt from that pool
linc. the other welle are on 160 acre .Ipacinl. Tbere would b. no question
if they wel'. all on 80 8Cce'~:~.pac:1ns. 'I ,
Hr. audd . "My PI':I."'I':9" rea8Ø1\ for br1ng:tqth18 up :1.8 thatth1a 18. power
tbe COmm1..10D does have to l1mit the production, it .hould be Ipoken of
here and in ca... whel'e 1oU have Gil.ett-1ns of 8omebod, 81ae8 lea.., then
it probably will be necessary to enforce that. What will happen in that
cae., a8 Mr. Mtarphy M)'S. 1. up to Jim W:l.l11ams." ,
*' . Lien - "Do 1 UDder.tan. that Mr. Wil1t- will 4eo1de wbethel' or Dot
thè two well. ød.ght have to be produceða:Lmultaneou81y?"
Hr. !l.trphy - "Simultaneously, yes, we will make reeoumendationa."
Mr. Sollars - "Wouldn't it be appropriate at hearings of this nature to
deteraaine during the hearing whether or not there wa. any evi4ence that
lhould be con.ider- whether 8uch prodactlona abould be re8tricted?
The reason for flf1 bringing this up 18 that I can conceive of other companie8
being 1n a .11811ar po8ition. Since this i8 the first on8 of this nature,
it seems to me it would be a good idea to establish whatever precedent
you care to ..tabll1h and duly coD81der the polut and reaincl the Ia.d.uetry
that the Commi8sion haa the power to restrict production. However, to thi8
particular case, there 18 no question of just and equitable share of
production because one particular company op.~at.8al1 production in th18
area rlaht now. It seems to me that if you were golng to coo,ic1er re"
strictiq the production that the evidence on which that coD814erat1oa:l.a
baaed 8hould be introduced at the hearing and tither. il DO rea.on for
restrict!.. production then i.tahould be ..,-..ad that production would not
be r..trtcte4. f'
HI' . Murphy- "Do11' t ,...ume that it 18 SO ins to be. U
HI'. Solla".. ... \tOo 1 unierstand that you are not contemp18t:LDI it?"
Hr. HIIrphy- "MI'. Brue,. aødthave disc..,ed it, howeveJ:' , 110 elect.toD wae
".." .. '
Mr. BJ'tICe w "Howeyel'. 1f 'both well, we... bel.. produced at: the _.ati-
yoøwou14 be produc1t\S two wells on au 80 acre.,act_s and there 18 no
provision 1M' SO acre spacing ta the Soldotna Creek Unit. It, .
Mr. 80 l1a1:1 .. "Wel1, neither well in the normal practice would"er be
pr04uc".tthe...taD ....tofo11 that wool. flow outer that ..11,
co if you "1'8 product". both wella at OIte time I would... 80 rea.on to
tUPPo8etbatthe combined production ,of Þt'o wells would ever exceed what
ODe well could pb.,.1eal1y ,r04\10811\8.Y oneday.t1
Mr . Murphy . "That 188 point well taken. It
Mr. Iollar8 w8"t- arp.1q Itandard-. ca.e, which Xahouldn', be 40108."
t..aughter fol1owedtbe preceding -remark.
Mr. Caraichael .. "Hr. Cha~raan. it I might say a word. 1 think th1øpal'tieu-
lar provision wat inserted 1ft the ae,gulation8 to prevent an operator. by
__a of an..cept1oa. from tak1ns aclvantale of an øjotrd.DI operator
r.tlt.~, the. loo1d.118 at it. £1:011 . State w1el. position aadcertaial, I th1Dk
itwotl14 b. piq justa little too far afield if you baed yourdec181oD.
on $ft over-all State wide picture, £0&"1 thf.ak you have to confine your..lf
to thec1rcuucauc..thatex18t 11\ thta part1cula¡o area in which tbeaapt1oD
va. re....tecl.. II
*'. Hul'pby .. ft1.'haak you Mr. CaI1Ilch..l ,that 11 a &ooclthou¡ht. Are there
.., oth.rcoaaentat"
I . .
Mr. L1an - "Well. I miaht point out that Fred Soli.. _Dtioned that the
operator 1n the .ituat1on down there coDtrolled both the unit. but of
course I should point out when the adjoining unit has other participant',
the 8ituation i. a little different. You would not want to eet up the
basic pattern for one unit that might be in conflict with an adjacent unit
until a great deal of information i8 available..'
Mr. Murphy. "We have thought about that too. II
Mr. Roderick - "Becs.use it is the first of its kind, I assume that you
make. that the Director will make, a deci8ion on geolo81calinformation,
and I am. alao 4asu1I1ng this Ie not to be presented at public hearing for
reasona of complications, or what have you..,
Mr. Murphy. lilt would 1f they were asking for 80 acre spacing. The op.rator
would have to present 8uff1ciat reservoir information to jultify bis re-
quest,. but this is not a hea1:'11\8 for 80 acrespacina. Tn. 'bearin¡ 18 to
set the spacing of . step-out well back in on line with the origia.lito.
of wells. May l..klOCAL a question? Why 18 it they didn't set this
well up on the or181nal .,ac1". at Iv_on liver in anticipation of hittt-it
01'4141\' t theyant:l.c:l.pate hitt1".?"
Mr. Crooker. "Of course this location w.sselected purely on the b..ta
of what a.olog1e tnformation the,. It.. av4i.labl. at that time alUl this waf
.elected ..the optimum po81tiO'Rto 41'111. Now, ofcour... a. other
1801081e 1afoÞl8t1oai8 obtai." by 0_.1"11111\1 of 160 acre locatio""
thea. we will let 8\1iftcleat 8tIOunt of 8uh8urface iDfonat1oa to deter-
mine what our".C1111 patteZ'u8hould be. But we p 1an to atepout on a
160 acre pattern to define the 111'41t. ofe. field, and stay at a wide
spacing, which I think 18 a smart operationattbe titne."
Nt. Marp111 .. "1 e()ocu~. It pleas.. me tO$ee the operators are hana1u8
toaether. Ith1øk that i. real fiae and it wil111O8tcertatnly becou14.recl
I'. 8.e 11\ Hr. Willi...' elect.ion in this pal'tlcular instance. .Are, there
8nyfurther coaaeat8, Mr. earnd.chàel. Mr. lucid?"
Nt'. CU'IIichael .. nNotld.aa- n
Hr. Rucld .. .... II
Hr.H1Irphy - '~1M, then the hearing will be adjourned."
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Al"i<:hc:¡r ¡\IOCl,Alaika
MY CQMN¡¡$,SION.fXP!í(E5
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REQUEST FOR EXCEPTION
TO 'WELL SPACING REGULATIONS
AIASKA ADMINISTRATIVE CODE
SECTION 2061.1
ALAf:KA OIL ¿~ GAE CONf~ERV'A~'ION CU~US~~,ION:
The -_-tanda:rd Oil Co. of
Cali fc rnia, Heste:,'!l Ope!:'atiollE, Inc.,
ar.~ ('a,.'::J7"""¡'/-'-'~"\'-:> +'!'1e C~I--,]d,.-'\t"~a C'-'ee'!-¡..:r...-it . "'~O,'\(")Ce~" t<'\ dii V>e-'+-"'Q'l"-"ll'il-
>-" V'.I:'....~u.IJ~_l. '.".L v - l, ~... '"' J..L '- Ù. 1.1 ,~-. , -,,'" r. i:.'.oJ...., J. 1,.:........l-.ta. oJ
drill to a subsurface locat:lon, :;2...4, in the approximate center of
the ~:\tJk of' the NE~(jf' ;.-ectiol1 4, T. '( N, R. ) 1,r!., from the ß';.~rface
location of well 41-4 in the NE-~ (Jf' the N.m& .of ::~ecti()n 4, 'I. /7 l~.,
~;~;'\ t.r
~.. ..';1 .,..
T'his locat:ion 1s bei:n.g -r>eqì;lested gO that 01\.1" develo}naent prog:i:'S.l11,
in the ;';O.ldotIla. Creel:t '0111 t cal1.'be continued on the ~.;ame 16G acre
spa(~i':1g pa,tterl1 as alrea.(3Jr axiøt.s in the Eiwa.n£;;onH:t'v'el" 'Oui t.
During
the d.r.il1j.ng, of this PX'()l)osed location, well 32...4, ,.¡e :plall to const3:"i.H~.t
að,di tiOllJil.l 160 acre lÖcatiçn$ on this same pattel"11 eo t~he.t, u¡.)(.)nCoHl'"
pletion of this proþosed '"ell 'we 1ifl1J.be i,n a p()~~i t1ön to :immediately
rnove the dl"'lll:1ng rig tiO the l1ext location, tln¡$ a\to1.ði.ngexpenai va
st;$.ndbJf' tittle for the rig.
Your immediate consideration and approval wot.tld 'be appreciated.
13TANDARD OIL CO. OF CALIFORN,IA
~1E8tmRN OPEMTIONf:\, ¡MC.
(Ø~..' . ¡. , , , 'm~"), It '~" . "' ( , 1iR' \ 'T~l~ijR~'iJ.iA~
¡~,~~t!~jg~Ji I~ :~tl!o~&~~_.-'ti!"" ~' ~~,~~l~~_~tI¿,~ ,~~ ,~,~, 'C~'2 ,'~"
'~Ø;I'II!fII\ft"',¡. ilD~'ft ...W'.I'Id';¡~"rIrI " 1.~
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P. O. BOX 7-839
ANCHORAGE
ALASKA
'----,
PRODUCING DEPARTMENT
TEI..EPHONE 47001
J, T. CROOKER
DISTRICT SUPERINTENDENT
March 18, 1960
, -'.,--
R fCE/VEl)
M,~R 21 1960
\
, Oil & G S
. . , },os "> .
DIV1SlOll of ?I ,j " . ".ctlOn
\1 k" ",.Illes 'Iud 1\1"
iÓ as aDept r N'. < ... ~I1CTJ I~
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Mr. JÌI11es A. Hill1ams, Director
'\
D1 vision of' Mines and Minerals
P. o. ~ 1391
Juneau, .A:~aska
\\
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Dear ~~il":
1MB is e. request by the Standa1~d Oil Co. of' California" 8S
or~emtor of the Soldotœ C¡~ek Un:l t, to h$.'Vea bear.lns at your
eEU'lieet convenience to obtain en except1onto A1aslœ.Admin1s-
tl"at1veCode,~iect3.on 2061.1 o:f"tltle lJ..~bis Section states
in part that I~!¡O mo:t~ than one well shell be drilled t(,) the
saIne pool on aDy'suchquartEu." SQ:Ct.1011 01'" go'v_I"nmental l,ot corres..
pond1ngthe:reto, exœptby t11e oJ:;~der' of the Commission.... u.
We pl~os,e to 'be¡1.n 11mnediø:tel.Y'to å.1Nottonallydri.J.l well
32....1", :f~l'"Om the sul--:eaee location of weU 1..1..4 to th~ 8,þprox1mø.te
center ofthesouth:wat quarter (Ø\i:) of the nortbearet quarter
(Nit) of. ßeetion4,f. 7 lb(f., R. 9 'if. :the bottom hole location
of the 1)l~pot!jed well 'trl.llbe 1400' south and weßt of the present
1~1.4 location.
.By dri,11ingj2-4 at th1s lo~Ettion, a 160 $.c1-e-well spacing
pattern can be eståblls'hed to confol"tU With the 16() acre well
spac,ing patter11 oow1nef'fec'ê; in the Swanson River Um't.We
pxtQP()s* to construct adð1 tioœl 160 aCl~e locations dUr:i.~1g Îthe
driJ.l1ns of? 32-4 wb1ch will allow us ,to lUOve the l'1.g immediately
to a new loœt1ou,l tbus .V'old.inge~tpenlSi ve f1;tandby time for
the rig,
1~l"'e"S the Direc'toI'O:e lUl1es andÞiinel"&ls has verbally autbor1zed
'US to CQl'smE!l1.cadr:.llliJ1g of 32-4, as set ()ut herein p\.u.~,Guant to
8utho<I1. 1¡ygranted 111m under Ðection 9" 3 of~ the Oil & Gas Consel~{ation
Act, (Chpt. l~O BU.-1955)¡ weproposetocommance thespud.d:tng and
dI-illif1EJ of said well as set out herein.; and the continuance of~
- 2 -
the drilling of said well will be dependent upon the decision
of the Cocmission to allow exception to Section 2061.1.
Yours vel1r truly;
STANDARD OIL COMPANY OF CALIFORNIA
WESTERN OPERATIONS, INC.
tJ. T. CROOKER
1"'/
CC :J~l & Gas Section
. Division of Mines and Minerals
329 'Second Avenue
Ancho rage, Ala,slta