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Home My WebLink AboutCO 028Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. ~~ Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plotter/scanner) [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY; ARIA Scanning Preparation BY: ~ARIA Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT= / ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES ~ NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES NO (SCANNING IS COM POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALI'rY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATUraL RESOURCES DIVISION OF MINES AND MINERALS ALASKA OIL AND GAS CONSERVATION COMMITTEE 3001 Porcupine Drive Anchorage, Alaska RE: THE APPLICATION OF TEXACO INCORPORATED, ) operator of the Nicolai Creek Unit #2 for an ) exception to Section 2061.2 of the Alaska- ) Oil and Gas Conservation Regulations, Title ) 11, AAC ) Conservation Order #28 August 23, 1966 IT APPEARING THAT: 1. Texaco Incorporated submitted a request dated July 27, 1966 for an exception to the 1500 foot governmental section boundary standback provisions and the 3000 feet between gas wells provisions of Section 2061.2 of the Alaska Oil and Gas Conservation Regulations, Title 11, AAC, for the development well Nicolai Creek Unit #2 proposed to be located as follows: Surface Location - 2018' North and 205' East from Southwest Corner, Section 29, TllN-R12W, S.M. At Top of Proposed Producing Zone - 600' North and 1000' East of Southwest Corner, Section 29, TllN-R12W, S.M. At Proposed Total Depth - 400' South and 1400' East of Northwest Corner, Section 32, TllN-R12W, S.M. 2. Notice of the hearing on the petition was published in the .Anchorage Daily News on August 12, 1966 pursuant to Section 2012 of the Alaska Oil and Gas Conservation Regulations but no protest or request for hearing was received. AND IT FURTHER APPEARING that after due consideration an exception to Section 2061.2 of the Alaska Oil and Gas Conservation Regulations permitting Texaco Incorporated to locate the Nicolai Creek Unit #2 within 1500 feet of a govern- mental section line and within 3000 feet of Nicolai Creek Sta~. #1 gas well should be granted because the subsurface geology as presently known indicates that the well drilled at the location prescribed by the applicable rules would not produce in paying quantities. If the subject well produces gas in paying quantities or greater from the same pools as the Nicolai Creek #1 well then the production from both wells will be allocated in a manner to be set out in a field spacing order which must be issued before production from either well can be sold. /' CONSERVATION ORDER #28 Page 2 August 23, 1966 NOW, THEREFORE, IT IS ORDERED that Texaco Incorporated be permitted to locate the development well Nicolai Creek Unit #2 at the location specified in para- graph No. 1. DONE at Anchorage and Juneau, Alaska, and dated August 23, 1966. Thomas R, Marshall, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee Concurrence: Alaska Oil and Gas Conservation Committee '~a~ :][ L' Vo~derAhe ' Member -:' ~: ~ ': :" ~'"~ ~-- Alaska Oil and Gas Conservation Committee S~ATE OF. ALASI~iA DEP~RTMEI~iT OF .... .. NATURAL RESOURCES' " DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation ~ ' , Committee I RE:.TeXac0, ' Incorporated ~ Nico-.~ .. lat Creek Union No. 2 Surface~ ".' ,Location ~ :2018' North and~ · .. '205' East .i~om SoUthWest C0r-[ ' '~ ncr Section 29, TllN-R12W, ~: ~.. a.M.' At'Top. o~ Pro~ose'~' Pro- .:(. ducing zone ~.~00' 'Norih. and .' ~' 1000~?'~East of South~st C6rner, '] "' Section' 29,' TllN.R12W~ a.M. ~.;.' ~.'~ F".~ ~Pro~os~d .Total DePth'. .:'" 400' Sc,uth 1400,~ :,,E~t ;'....Northwest .Corner, Sectioh 32. ',",~0ti~e 'is hereby given that :the the..~ Alaska Oil and Gas Conserva- /ti~h. Committee to 'is~Ee an Order '~,ptin'2 ,th'~ ," ~aPt'i0n~', ~eli "ldom t~e::,,~ootage ', spacing requirements ~C :Title, 11,' Section ,2061.2~' Parties ~wt:~,~ 'may be' ,aggrieved if 'th6' q~e~ed order'is issued are allow:ed t~ff"days from the d~te of:this pub, ~E~:~',' request ,' ~or hearing. Plaee .c~0'~age, Aias~a: 'I~ s'~ch 'a' ': protes~ ~i~.'~ .~timely ~fled, a. hearing a~'.~the. .~tt~r='./Will~ ~be' held at" '~'t~'e ~ ~b0~ ':~d~ess...a~. 10~00. a.m., ~. August' .' 23, .'1'~66,..at whic~ protestants and 'oth- ~rs .may .be 'he'ard.. If nO sUCh :test 'ts .,timely filed, the .Committee will . consider .the issuance., of the :o.rde~ with0ut"a, hearing; .' ,, ~,. , ',, , ,, , II ~" ~homas R, Marshali,. jr~ ~ '.... ExeCutive Secretary'. ". Alaska Oil and' Gas.' . ~ ', conservation .Committee PETROLEUM PRODUCTS August 19, 1968 TEXACO INC. P. O. BOX 664 ANCHORAGE, ALASKA 99501 ~227787: NICOLAI CREEK UNIT AGREEMENT (NICOLAI CREEK PARTICIPATING AREA A) NICOLAI CREEK - ALASKA CONSERVATION ORDER ~28, AUGUST 23, 1966 Mr. Thomas R. Marshall, Executive Sec. Alaska Oil & Gas Conservation Committee Division of Mines & Minerals 3001 Porcupine Drive Anchorage, Alaska Dear Mr. Marshall: Texaco, Inc., as operator of the Nicolai Creek Unit Well ~2, requested a Spacing Exception to Section 2061.2 of the Alaska Oil and Gas Conservation Regulations. Conservation Order ~:~28 dated August 23, 1966 was issued and states that "If the Subject Well produces gas in paying quantities or greater from the same pools as the Nicolai Creek ~1 Well, then the production from both wells will be allocated in a manner to be set out in a Field Spacing Order which must be issued before production from either well can 'be sold". As both Unit Wells ~1 and $2 are within the recently approved Nicolai Creek Participating Area A, we believe that the matter of allocation of production from both wells has been solved. However, because of the provision in Conservation Order f:28, we request that a Field Spacing Order be issued by you. We contemplate producing gas from the participating Area A sometime after September 1, 1968 and would appreciate the issuance of this order at your earliest convenience. Very truly yours, CHB :bj TEXACO Inc. Claude Il. Brown RECEIVED District Landman - DI¥1$1ON OF MINES & MINERALS A.INCHORAGE DOMESTIC PRODUCING DEPARTMENT LOS ANGELES DIVISION J. F. McCLUNG, D~VXSION LA~AN TF~XACO PETROLEU~IPRODUCTS July 2 7, 1966 8350 WILSHIRE BOULEVARD LOS ANGELES, CALIF. 9000~ APPLICATION FOR SPACIN~ EXCEPTION NICOLAI CREEK UNIT WM~.T,T, ~'2 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee Anchorage, Alaska RECEIVED AUG 1 1966 Dear Sir: AIqCHORAGE In connection with the attached Application for Permit to Drill the Nicolai Creek Unit ~2 Well, Texaco Inc., as Operator for itself and The Superior Oil Company, hereby applies for a spacing exception to drill and produce the sub- Ject well from a producing interval which will be located approximately 1000''~ from the boundary of a Governmental section and approximately 1B50* from the topi. of the producing interval of the Nicolai Creek State #l Well. The subject well is to be directionally drilled from the Slant Well Permit An. 06B802, the surface location of which is on U. S. Lease Anchorage OB4161 and completed at a subsurface location on State of Alaska Tide- land Lease #17585 as shown on the attached plat. DIVISION OF MINES & MINERALS The well will be drilled to a total depth of 5000"' and is programmed, to test the zones found productive in the Nicolai Creek State #1 well completed as a commercial gas well on May lB, 1966. We have carefully reviewed the applicable State of Alaska spacing regulations, in view of the topographical condi- tions which exist in this area, and offer the following for your consideration: 1. We consider it impractical to directionally, drill a well in such a manner as to complete it in the formations heretofore discovered from an onshore location and still be 15OO~ from the boundary line of a Governmental section and BO00~ from the bottom hole location of the Nicolai Creek State #l well. 2. Extensive mud flats at low tide eliminates the possibility of using a floating drill ship. Mr. Thomas R. Marshall, Jr. -2- July 27, 1966 3. The use of a mobile Jack-up drill barge or sub- mersible barge would require the dredging of an extensive channel which would interfere with fishing rights along the shore. 4. The construction of a fill island or structural steel platform on the mud flats would present major technical and operation problems, as well as interfering with fishing rights. As you know, the finalization of the Nicolai Creek Unit Agreement is currently being delayed due to the revision of the State Form DL-93. When this section has been approved by the State of Alaska and the United States Geological Survey, it will be incorporated in the Nicolai Creek Unit and submitted to the working interest owners for their consideration. However, our State of Alaska #17585 has an expiration date of January 1967, and in order to protect this lease from termination, we hereby make application for the drilling of the above well under a spacing exception and request your favorable considera- tion. If spacing exception is granted, we recognize we will be subject to the provisions of Article 2, Section Bl.O5.100b of Alaska Statutes (Title 31, Chapter 05). Texaco Inc. and The Superior Oil Company are Joint lessees of State of Alaska Tidelands Leases ADL 17585 and ADL 17598. Texaco is lessee of U. S. Leases Anchorage 0350~4, 035135 and 035161. All or a portion of these leases lie within a 2 mile radius of the subsurface location of the proposed well. Other lessees who have lands within the 2 mile radius are: Socony Mobil Oil Co. - State of Alaska Leases ADL 22156 and 22157. The Atlantic Refining Co. - State of Alaska Tidelands Lease ADL 1877~. Pan American, Phillips, Sinclair State of Alaska Lease ADL 17586. No other wells have been drilled within two miles of Nicolai Creek State #1 well subsurface producing intervals. WFA/JPR-MKS Encls. Yours very truly, Mr. Thomas R. Marshall, Jr. July 27, 1966 This application has been reviewed and all the facts herein stated are true and the accompanying plat is accurately drawn to scale and correctly reflects pertinent and required data. TEXACO Inc. "Assistant Division Manager. Subscribed and sworn to before me this ~"~-'day of ~~ 1966. Notary Pu~li'c in and for ~he-Coun~y of .Los Angeles~_ State of California . MARGARET M, KANE; · ~.~ Commission Expires Augusl 1~3,, 1961 cc: United States Geological Survey W. J. Linton, Regional Supervisor Anchorage, Alaska The Superior Oil Company LAND DEPARTMENT DOMESTIC PI{ODUCII~IG (WEST T-F~XACO PETROLEUS{PRODUCTS July 27, 1966 33~0 WILSHIRE I~0ULEVARD LOS ANGELES, CALIF. 9000~ APPLICATION FOR SPACING EXCEPTION NICOLAI CREEK UNIT ~2 WELL ALASKA Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska 0il & Gas Conservation Committee Anchorage, Alaska Dear Sir: RECEIVED AU6 i 1966 DIVISION OF MINES & MINI::RAII.~. ANCHORAGI~ Enclosed. please find. revised Application for a. Spacing Exception and revised, plats which have been prepared. a.s a. result of the change in surface location now based on the Lindsey Survey and as discussed with you in Anchorage on July 22~ 1966. It would be appreciated if the letter and application forwarded to you by o'ur letter of July 14, 1966 be destroyed. Ail footages previously shown on our application for Nicolai Creek State #1 and 1-A well and. all sundry notices and applications for the first discovery royalty shall be considered to conform to F. M. Lindsey Survey and the surface and subsurface locations are now as follows: Surface: ~ N., 195' E. from the SW-~ of ~ection 29, T.11-N., R.12-W.SM SUbsurface: Top of the producing interval will be 35' West of the East line of Section 30 and will be 670'S. from Mr. Thomas R. Marshall, Jr. Executive Secretary -2- 7-27-66 The coordinates for the producing interval at 3630' sre ss follows: 764.52' S. and 259.76' W. measured from the surface location. We appreciate your assistance in this matter and if there is any add~itional information we might furnish you either contact us or our representative in Alaska, Mr. Co H. Brown. Yours very truly, TEXACO Inc. JPR: EVB Encl. cc: Superior Oil Co. U.S.G.S. W. J. Linton, Regional Supervisor Anchorage~ Alaska DOMESTIC PRODUCING DEPARTMENT ~.os ANGELES DIVISION J. F. McCLUNG, ~rVISION LANDMAN T~XACO PETR()I.I~ UN! I~RO1)t~CTS July 14, 1966 3850 WILSHIRE BOULEVARD LOS ANGELES, CALIF. 90005 APPLICATION FOR SPACING EXCEPTION NICOLAI CREEK UNIT WELL ~-2 ALASKA Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska 0il and Gas Conservation Committee Anchorage, Alaska Dear Sir: In connection with the attached Applica'~'~6h!:"~'~$r Permit to Drill the Nicolai Creek Unit #2 Well, Texaco Inc., as Operator for itself and The Superior 0il Company, hereby applies for a spacing exception to drill and produce the subject well from a producing interval which will be located approximately 1000' from the boundary of a Governmental section. This well is to be directionally drilled from the Slant Well. Permit An. 063802, the surface location of which is on U. $. Lease Anchorage 034161 and completed at a subsurface location in State of Alaska Tideland. Lease #17585 as shown on the attached plat. The well will be drilled to a total depth of 5000' and is programmed, to test the. zones found productive in the Nicolai Creek Sta. te ~-'1 well completed as a commercial gas well on May 13, 1966. We have carefully reviewed, the applicable State of Alaska spacing regulations, in wiew of the topographical, conditions which exist in this area.~ and offer the following for your consider- ation: 1. We consider it impractical to directionally drill a well in such a manner as to complete it in the formations heretofore discovered from an onshore location and still be 1500' from the boundary line of a Governmental section and 3000' from the bottom hole location of the Nicolai Creek State ~1 well. 2. Extensive mud flats at low tide eliminates the possibility of using a floating drill ship. Mr. Thomas R. Marshall, Jr. -2- 7-14-66 3. The use of a mobile jack-up drill barge or sub- mersible barge would require the dredging of an extensive channel which would interfere with fishing rights along the shore. 4. The construction of a fill island or structural steel platform on the mud flats would present major technical and operational problems, as well as interfering with fishing rights. As you know, the finalization of the Nicolai Creek Unit Agreement is currently being delayed due to the revision of the State Form DL-93. When this section has been approved by the State of Alaska and the United States Geological Survey, it will be incorporated in the Nicolai Creek Unit and submitted to the working interest owners for their consideration. However, our State of Alaska #17589 has an expiration date of January 1967, and in order to protect this lease from termination, we hereby make application for the drilling of the above well under a spacing exception and request your favorable consideration. Texaco Inc. and The Superior 0il Company are joint lessees of State of Alaska Tidelands Leases ADL 17585 and ADL 17598. Texaco is'lessee of U. S. Leases Anchorage 035044, 035135, and 034161. Ail or a portion o£ these leases lie within a 2 mile radius of the subsurface location of the proposed well. Other lessees who have lands within the 2 mile radius are: Socony Mobil 0il Co. - State of Alaska. Leases ADL 22156 and 22157. The Atlantic Refining Co. - State of Alalska. ~Tidelands Lease ADL 18774. Pan American, Phillips, Sinclair State of Alaska Lease ADL 17586. No other wells have been drilled, within two miles of Nicola. i Creek State #1 well subsurface producing intervals. Y~urs very_ ~ruly, This application has been reviewed and all the facts herein stated are true and the accompanying plat is accurately drawn to scale and correctly reflects pertinent and. required data. WFA/JPR :EVB Encl. TEXACO Inc. sistant to Division Manage Mr. Thomas R. Marshall, Jr. 7-14-66 Subscribed and sworn to before me this /~/r_~ day of J~/'tf , 1966. Notary ?ublic in an~If'9~/the ~sther V. County of Los Ang_a~-~~' State of California. I~y~ommiss;on Expires August 16, 19&a cc: United States Geological Survey W. J. Linton, Regional Supervisor Anchorage, Alaska. Bozania~ ~ TA A A A ]1 [(~~)} NOTARY PUBLI~-CALIFORNIA I[ ~1 ~L~}~FF/ ,.~NC~A~ OmC~ ~N I[ Jl ~ LOS ~.~s COUNt~ i[ cc: The Superior Oil Company