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HomeMy WebLinkAboutCO 364Conservation 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. ~_LJ..-_ Conservation Order Category Identifier Organizing (,~,~,,~) RESCAN DIGITAL DATA OVERSIZED (Scannable with large /' plotter/scanner) Color items: [] Diskettes, No. [] Maps: [] Grayscale items: [] Other, No/Type [] Other items [] Poor Quality Originals: OVERSIZED (Not suitable for [] Other: plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other NOTES: BY: Scanning Preparation BY; ROBIN~ Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~j~ ~' PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES NO Stage 2 IF NO IN STAGE t, PAGE(S) DISCREPANCIES WERE FOUND: YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES} General Notes or Comments about this Document: 5/21/03 Conser~OrdCvrPg,wpd • • Index Conservation Order 364 West McArthur River Unit #4 1. Apri123, 1995 Stewart Petroleum Company Requests for Spacing Exception 2. August 30, 1995 Notice of Public Hearing, Affidavit of Publication 3. September 14, 1995 Protest letter from Phillips Petroleum Co. 4. September 22, 1995 Letter from Stewart Petroleum Company stating Mr. Ellis has no authority to state anything on behalf of Stewart Petroleum Company 5. September 28, 1995 Phillips Petroleum Company Withdrawals of Petition 6. September 28, 1995 AOGCC Acknowledges withdrawal 7. September 28, 1995 Notice of Public Hearing Cancellation Conservation Order 364 Re~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage Alaska 99501-3192 THE APPLICATION OF STEWART ) PETROLEUM COMPANY for an order ) granting an exception to the spacing ) requirements of Title 20 AAC 25.055 ) for the Stewart West McArthur River Unit ) No. 4 exploratory oil and gas well. ) Conservation Order No. 364 Stewart Petroleum Company West McArthur River Unit No. 4 October 4, 1995 IT APPEARI.NG THAT: Stewart Petroleum Company submitted an application dated August 23, 1995 requesting exception to 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(3) to allow drilling the Stewart West McArthur River Unit No. 4 exploratory oil and gas well to within 500 feet of a section line. , Notice of an opportunity of public hearing was published in the Anchorage Daily News on August 30, '1995 pursuant to 20 AAC 25.540. o Phillips Petroleum Company by correspondence dated September 14, 1995, filed a protest to the proposed spacing exception. , By correspondence dated September 28, 1995, Phillips Petroleum Company withdrew their protest. iFIiN'DINGS: o Stewart Petroleum's West McArthur River Unit No. 4 (WMRU 4) well as proposed will be a deviated hole drilled from a surface location 2026' from the south line and 1974' from the west line (.FWL) of Section 1.6, TSN, R14W, Seward Meridian (SIM) to a bottom-hole location 1088' from the north line and 200' iFWL of Section 22, T8N, R 14W, SM. . The WMRU 4 well has the dual purpose of serving as a delineation well for Lower Tyonek gas reserves present in an undefined gas pool in the nearby Phillips Petroleum Company West Foreland No. I (WF 1) gas well and as a Hemlock Fm. exploratory oil well. o The proposed Lower Tyonek gas target horizon in the WMR'U 4 is more than 3000' from the WF 1 well and more than '1500' from the exterior boundary of the West McArthur River Unit. The WI:' I well is located in Section 21 T8N, R14W, SM, the WMR'U 4 well bottom hole location is proposed for Section 22 T8N, RI4W, SM. Conservation Ordcr No., , October 4, 1995 Page 2 . The external boundary of the West McArthur River Unit does not conform to section lines along the western side of the Unit and traverses through a portion of Section 21 T8N, R14W, SM. . Phillips Petroleum Company operates lease A-035017 which has a common boundary with the West McArthur River Unit and contains the WF 1 well. . Offset owners Cook Inlet Region Incorporated, Phillips Petroleum Company, and Union Oil Company of California have been duly notified. CONCLUSIONS: The WMRU 4 well as proposed will not conflict with statewide spacing requirements relative to existing wells. . An exception to 20 AAC 25.055(a)(3) is necessary to bring the WMRU 4 well into compliance with statewide rules governing well spacing and drilling units. NOW, THEREFORE, IT IS ORDERED: Stewart Petroleum Company's application for exception to 20 AAC 25.055 for the West McArthur River Unit No. 4 well is approved. DONE at Anchorage, Alaska and dated October 4, 1995. ....... .?%- David Alask Oil and Gas Cz tservation Commission Russell A. Douglass, Comm~.'o Alaska Oil and Gas Conserva'tton Commission AS 31.05.080 provides that within 2() days aller receipt ol' written notice of the entry of an order, a person affected by it ~nay file with the Commission an application for rehearing. A request lbr rehearing ~nust be received by 4:30 PM on the 23rd day lbllowing file date ol;the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refi~se the application iii whole or in part within 10 days. The Commission can refi~se an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission rethses the application or mails (or otherwise distributes) an order upon rehearing, both being file final order of the Commission, to appeal fl~e decision to Superlin' Court. Where a request for rehearing is denied by nonaction of the Commission, thc, 30-day period for appeal to Superior Cotv:t runs from the date on which the request is deemed denied (i.e., 10ill day atter the application for_rehearing was filed) Notice of Public Hearing Cancellation STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ The application of STEWART PETROLEUM COMPANY for exception to 20 AAC 25.055 to allow drilling the WEST McARTHUR RIVER UNIT No. 4 exploration oil. and gas well. PHILLIPS P.ETROLEUM COMPANY by letter dated Septe~nber 28, '1995 has withdrawn its protest in the above referenced matter. Accordingly, the hearing scheduled at the commission offices for 9:00 am. on September 29, 1995 has been canceled. Russell A. Douglass Cmnmissioner ALAS~ OIL AND GAS CONSERVATION COMMISSION TONY KNOWLE$, (~OVEFINOI~ 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 September 28, 1995 Tim A. Billingsley Petroleum Engineer Stewart Petroleum Company Denali Towers North, Suite 1300 2550 Denali Street Anchorage, Ak. 99503 Dear Mr. Billingsley: Re: Request for spacing exception for WMRU 4 The CommissiOn has received a withdrawal of the protest to your application for spacing exception for the West McArthur River Unit No. 4 (WMRU 4) well which was filed by Phillips Petroleum Company. Accordingly, the hearing scheduled at the Commission offices for 9:00 am on September 29, 1995 has been canceled. Sincerely Russell A. Douglass Commissioner cc: Phillips Petroleum Company TONY KNOWLE$, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 September 28, 1995 Stephen M. Ellis Delaney, Wiles, Hayes, Grety & Ellis, Inc. 1007 West 3RD Avenue, Suite 400 Anchorage, Alaska 9950 !- 1990 Dear Mr. Ellis: Re: Request for spaCing exception for WMRU 4 The Commission has received your correspondence dated September 28, 1995, in which Phillips Petroleum Company withdraws it's protest to the application of Stewart Petroleum Company for a spacing exception for the West McArthur River Unit No. 4 well. As you know a public hearing had been scheduled at the commission offices for 9:00 am on September 29, 1995 in response to the Phillips Petroleum Company protest. The withdrawal of the Phillips Petroleum Company protest eliminates any need for a public hearing in this matter. Accordingly, the September 29 hearing is canceled. Sincerely Russell A Douglass Commissioner cc: Stewart Petroleum Company DELANEY, WILES, HAYES, GERETY & ELLIS, INC. DANIEL A. MRE'T'Y 8TEFINEN la. El.tJ~ ClAY A. YOUNG WILLIAM E. MOOELEY MARC D. BOND J.D. CELLARS JAMES B. FRJDERICi ANDR-cW GUIDI TIMOTHY J. LAMB C"yN~ L. DUCEY DONNA M. MEYER,~ ATTORNEY8 AT LAW SUITE 400 tCX)7 WEST 3RD AVENUE ANCHORAGE, ALASKA lessor-1000 TELEPHONE (0CIT) 2'~-358t FAX (907) 277-133t JEFFREY P, STARK CLYDE E. SNIFFF. N, ,II OF ~ JAMES J. DELANEY GEORGE N. HAYES STANLEY H. REITMAI EUGEHE F. WILES JOHN K, &RUBAKER FAX TRANSMISSION COVER SHEET · , ,,,,, ,,.** ,, ,, -- ............. CONFIDENTIAL COMMUNICATION This message is intended only for the use of person(s) to whom it is addressed, and may not be otherwi; distributed, copied or disclosed. The contents may also contain information that is privileged, confidential an, exempt from diecloeu~ under applinable law. These rights ere not waived by transmission of the information v facsimile. If you receNed this communication in error, please notify Us immediately by telephone (coiled, necosser~) end tatum Ihs ~'nal message to us at the above ack,ss by mall. We will reimburse any reasonsb expenses iJ~urmd. TO: Alaska Oil and Gas Conservation Commission COMPANY: FAX NUMBER: 276-7542 FROM: Stephen M. Ellis DATE: September 28, lg95 MATTER: Withdrawal of Petition of Phillips Petroleum i i i liill1,1 , iii m NUMBER OF PAGE8 INCLUDING COVER SHEET: 4 COMMENTS: EP 2 8 i995 & Gas Cons. Commissioz~ Anchorage ~/T'd S3A~H S33IM A3NW33~ NW~O:~O ~6, B~ d3S O,&N I~j., ,~., GI.,A.Y A, YOUNG MA~ ~, BOND HOW,~Rg A, ~A~ GYflTHIA ~, DELANEY, WILES, HAYES. GERETY & ELLIS, INC, ATTORN~;YB AT L.~W ANCHORAGE, ALASKA 95~01. TEgEPHONE ($07) aTg.~81 FAX (g07) ~77, T331 September 28, 1995 VIA TELECOPIER AND HAND DELIVERY Alaska Oil and Oas Conservation Commission 3001 Porcupine Drive Anchorase, Alaska 99~01.3192 Re: In the matter of: The Application of Stewart Petroleum Company for Exception to 20 AAC 25.055 to Allow Drilling the ~eSt McArthur River Unit No. 4 Exploratory_ Oil Dear Commissioners: Please find enclosed the Withdrawal of Protest of Phillips Petroleum Company as to the above-referenced matter. Very truly yours, DELANEY, WILES, HAYES, GERETY & ELLIS, INC. Stephen M. Ellis SME:jaf Enclosure Phillips Petroleum Company (w/eno.) Stewart Petroleum Company (w/eno.) ~? 2, '~ !995 6as Cons. Commission Anchorage P/~'d S3A~H 539IM A3N~q3G N~P0:60 S6, 82 d3S DEI-a. NEY, Wll-£5, HAYES. GI~RETY ~ ELl,IS, INC. SVl?l 400 ANCHOn~G~. A~S~A STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COM3VIISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 In the matter of: The application of Stewart Petroleum Company for exception to 20 AAC 25.055 to allow drilling the West McArthur River Unit No. 4 exploratory oil and gas well ) ) ) ) ) ) WITHDRAWAL OF PROTEST OF PHILLIPS PETROLEUM COMP ,A~g Phillips Petroleum Company ("Phillips") hereby withdraws its Protest as to the of Stewart Petroleum Company ("Stewart") for an exception to the provisions of 2( 25.055(a)(2) & (3) for the drilling of an exploratory oil and gas well in thc West Mc River Unit. Notwithstanding the withdrawal of its Protest, Phillips hereby specifically rese~ right to raise, at a later date, such issues as may be appropriate to (a) assure that Ste, allowed to produce no more than its just and equitable share of gas from the pool, generally protect Phillips correlative rights, in the event the subject well is in fact drill. determined to be capable of producing gas in paying quantities. SEP 2 8 199,5 Alaska Oi~.& Gas Cons. Commission , ~chorage ~q O! u~:st ,ts is ,(b) t~/~,,'d SSA~JH S39IH ASNWgSCI NWt~0:60 c;6, 82 d3S OEI,,,AN~Y, WILES, HAYES, GERETY ELLIS, ANCHORAGE, ALASKA DATED AT Anchorage, Alaska this ~' day of September, 1995. DELANEY, WILES, HAYES, GEKETY & ELLIS, INC, Attomcys for Phillips Petroleum Company Steplien M, Ellis E? £ 8 '~995 Gas Cons. Commission Anchorage ~/~'d S3AWH S39IM A3NW93~ NW~0:60 ~6, B~ d3S DANIEL A. GERETY STEPHEN M. ELLIS CLAY A. YOUNG WILLIAM E. MOSELEY MARC: D. BOND J. D. CELLARS JAMES B. FRIDERIC! ANDREW GUIDI HOWARD A. LAZAR DONALD C:. THOMAS TIMOTHY J. LAMB CYNTHIA L. DUCEY DONNA M. MEYERS DEIANEY, WILES, HAYES, GErETY & ELLIS, INC. ATTORNEYS AT LAW SUITE 400 1OO7 WEST 3RD AVENUE ANCHORAGE. ALASKA 99501-1990 TELEPHONE (907) 279-3581 FAX (907) 277- 1331 September 28, 1995 VIA TELECOPIER AND HAND DELIVERY JEFFREY P. STARK CLYDE E. SNIf'FEN. JR. OF COUNSEL JAMES J. DELANEY GEORGE N. HAYES STANLEY H. REITMAN EUGENE F. WILES 1922 -1990 JOHN K, BRUBAKEF~ 1937-1992 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: In the matter of: The Application of Stewart Petroleum Company for Exception to 20 AAC 25.055 to Allow Drilling the West McArthur River Unit No. 4 Explorato _ry Oil and Gas Well Dear Commissioners: Please fred enclosed the Withdrawal of Protest of Phillips Petroleum Company as to the above-referenced matter. A~a$~i~ Oil ,& Gas Cons. Commission 'Anchorage SME:jaf Enclosure Very truly yours, DELANEY, WILES, HAYES, GERETY & ELLIS, INC. Stephen M. Ellis Phillips Petroleum Company (w/enc.) Stewart Petroleum Company (w/enc.) DELANEY, WILES, HAYES, GERETY & ELLIS, INC. SUITE 400 1007 WEST 3RD AVENUE ANCHORAGE, ALASKA (907) 279-3581 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 In the matter of: The application of Stewart Petroleum Company for exception to 20 AAC 25.055 to allow drilling the West McArthur River Unit No. 4 exploratory oil and gas well WITHDRAWAL OF PROTEST OF PHILLIPS PETROLEUM COMPANY Phillips Petroleum Company ("Phillips") hereby withdraws its Protest as to the request of Stewart Petroleum Company ("Stewart") for an exception to the provisions of 20 AAC 25.055(a)(2) & (3) for the drilling of an exploratory oil and gas well in the West McArthur River Unit. Notwithstanding the withdrawal of its Protest, Phillips hereby specifically reserves its right to raise, at a later date, such issues as may be appropriate to (a) assure that Stewart is allowed to produce no more than its just and equitable share of gas from the pool, or (b) generally protect Phillips correlative rights, in the event the subject well is in fact drilled and determined to be capable of producing gas in paying quantities. SEP 2 8 1995 Alaska Oil & Gas Cons. Commission ~chorage DELANEY, WILES, HAYES, GERETY & ELLIS, INC. SUITE 400 1007 WEST 3RD AVENUE ANCHORAGE, ALASKA (907) 279-358! DATED AT Anchorage, Alaska this Z6v day of September, 1995. DELANEY, WILES, HAYES, GERETY & ELLIS, INC. Attorneys for Phillips Petroleum Company Stepfien M. Ellis SEP 2. 8 199!5 Alack_ a .0il .& Gas Cons. Commissio. n , Anchorage S EP 2 6 199,5 Gas Cons. C_o. mmissio, n Stewart Petroleum Company Denali Towers North, Suite 1300 2550 Denali Street, Anchorage, Alaska 99503 (907) 277-4004 · FAX (907) 274-0424 September 22, 1995 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Attn: Mr. Robert P. Crandall, Senior Petroleum Geologist Re: Application for Exemption to Provisions of 20 ACC 25.055 Drilling Units and Well Spacing West McArthur River Unit #4 Mr. Crandall: Stewart Petroleum Company would like to correct a statement in the Phillips Petroleum Company's protest dated September 14, 1995 regarding the above-referenced matter. The last statement in the protest filed by Mr. Ellis who is an attorney for Phillips stated; "The undersigned is authorized to state that Stewart has no objection to this request for a continuance." This is not true and Mr. Ellis has no authority to state anything on behalf of Stewart Petroleum Company. If there are any questions, please contact me at 277-4004. W. R. Stewart President Stewart Petroleum Company ALASKA OIL AND GAS CONSERVATION COMMISSION TONY KNOWLE$, (~OVEI~NO.~ 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 September 22, 1995 Tim A. Billingslcy Petroleum Engineer Stewart Petroleum Company Denali Towers North, Suite 1300 2550 Denali Street Anchorage, .Ak. 99503 Re: Rcqucst for spacing cxccption for WMRU 4 Dear Mr. Billingsley: Thc Cormnission has received a protest to your application for spacing exception for the West McArthur River Unit No. 4 (WMRU 4) well. The protest was filed by Phillips PetroleUm Company and raises questions regarding the appropriateness of the WMRU 4 location. Accordingly, a hearing will bc held at the Commission offices at 9:00 am on September 29, 1995. Thc hearing will be held in accordance with 20 AAC 25.540.' As stated in 25.540(c)(6) thc applicant will testify first, followed by other interested parties. Thc Connnission may allow cross- examination of witnesses by thc applicant or affected owners. Additionally, thc Commission requests testimony regarding any legal standards or appropriate precedents that thc Commission should consider prior to rendering a decision in this matter. Thc Commission looks forward to hearing your testimony concerning the appropriateness of the WMRU 4 spacing exception. Sincerely Russell A. Douglass Comlnissioncr cc: Phillips Petroleum Company TONY KNOWLE$, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 September 22, 1995 Stephen M. Ellis Dclancy, Wiles, Hayes, Grcty & Ellis, Inc. Suite 400 1007 West 3RD Avenue Anchorage, Alaska 9950 I-1990 Re: Request for spacing exception for WMRU 4 Dear Mr. Ellis: Thc Commission has reviewed your protest of a spacing exception for the West McArthur River Unit No. 4 (WMRU 4) well. Your protest was timely filed and raises questions regarding the appropriateness of thc WMRU 4 location. Accordingly, a hearing will be held at the Commission offices at 9:00 am on September 29, 1995. The hearing will be held in accordance with 20 AAC 25.540. As stated in 25.540(c)(6) the applicant will testify first, followed by other interested parties. The Commission may allow cross- examination of witnesses by the applicant or affected owners. Thc Conunission requests expert testimony substantiating thc contentions put forward in your protest alleging the WMRU 4 well is unnecessary and wasteful, and will jeopardize Phillips' correlative rights. Testimony regarding any legal standards or appropriate precedents that the Commission should consider prior to rendering a decision in this matter is also requested. Thc Commission has decided not to hold a pre-hearing conference duc to the short time let~ before thc hearing. The Commission looks forward to hearing your testimony concerning the appropriateness of the WMRU 4 spacing exception. Sincerely .Russell A. Douglass Commissioner cc: Stewart Petroleum Company DANIEL A. GERETY STEPHEN M. ELLIS CLAY A. YOUNG WILLIAM E. MOSELEY MARC D. BOND J. D. CELLARS JAMES B. FRIDERICI ANDREW GUIDI HOWARD A. LAZAR DONALD C. THOMAS TIMOTHY J. LAMB CYNTHIA L, DUCEY DONNA M. MEYERS DELANEY, WILES, HAYES, GERETY & ELLIS, INC. ATTORNEYS AT LAW SUITE 400 IOO7 WEST 3RD AVENUE ANCHORAGE. ALASKA 99501 -1990 TELEPHONE (907) 279-3581 fAX (907) 277- 1331 September 14, 1995 VIA HAND DELIVERY JEFFREY P. STARK CLYDE E. SNIFFEN, JR. OF COUNSEL JAMES J. DELANEY GEORGE N. HAYES STANLEY H. REITMAN EUGENE F. WILES 1925 -1990 JOHN K. SRUBAKEI::~ 1937-1992 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: In the matter of: The Aapplication of Stewart Petroleum Company for Exception to 20 AAC 25.055 to Allow Drilling the West McArthur River Unit No. 4 Exploratory. Oil and Gas Well Dear Commissioners: Please find enclosed the Protest of Phillips Petroleum Company as to the above- referenced matter. Very truly yours, DELANEY, WILES, HAYES, GERETY & ELLIS, INC. Stephen M. Ellis SME:jaf Enclosure CC: Phillips Petroleum Company (w/enc.) Stewart Petroleum Company (w/enc.) SEP 14 199,5 Ataska. 0~1 .& Gas Cons. Com.~issllln~ DELANEY, WILES, HAYES, GERETY & ELLIS, INC. SUITE 400 1007 WEST -~IRD AV£NUE ANCHORAGE, ALASKA (907) 279-358! STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 In the matter of: The application of Stewart Petroleum Company for exception to 20 AAC 25.055 to allow drilling the West McArthur River Unit No. 4 exploratory oil and gas well ) ) ) ) ) ) ) PROTEST OF PHILLIPS PETROLEUM COMPANY A. Grounds for Protest. Phillips Petroleum Company ("Phillips"), by and through counsel, hereby protests the Application of Stewart Petroleum Company ("Stewart") for an exception to 20 AAC 25.055 to allow drilling the West McArthur River Unit No. 4 well ("the Stewart well"). The pertinent facts to Phillips' Protest are as follows: 1. Pursuant to federal lease A-035017, Phillips owns the oil and gas rights as to the onshore portion of Sections 18 & 21, T. 18N, R14 W. S.M. 2. The proposed bottom hole location of the Stewart well is within the Lower Tyonek sands. 3. The West Foreland No. 1 well, drilled on Phillips' lease A-035017, is wholly capable of producing gas in paying quantities from the same Lower Tyonek sands. RE E;VED SEP 1 4 199,-5 ~ t~1t .& Gas Cons. Commisskm OELANEY, WILES, HAYES, GERETY & ELLIS, INC. SUITE 400 1007 WEST 3RD AVENUE ANCHORAGE, ALASKA (907) 279-358! Accordingly, the proposed Stewart well will be wasteful in that it is unnecessary. The West Foreland No. 1 well can produce any gas that can be marketed from the Lower Tyonek sands. At a minimum, the Stewart well, if drilled and allowed to produce, will drain a portion of the gas located beneath Phillips' lease. Accordingly, the drilling of the Stewart well will jeopardize Phillips' correlative fights. Hence, pursuant to AS 31.05.100(b), a hearing is required to offset any advantage Stewart will secure (in the event the exception is granted) so as to minimize drainage, and to assure that Stewart will be allowed to produce no more than a just and equitable share of the gas in the Lower Tyonek sands. Finally, since Phillips and Stewart are presently unable to agree to share in the Lower Tyonek production, the Commission is authorized, under AS 31.05.100(c), to enter an order pooling and integrating the parties' interests. Phillips desires to present evidence as to this procedure as well, so as to assure the prevention of waste. B. Request for Continuance. Phillips and Stewart are presently involved in negotiations in an attempt to amicably resolve their differences. It is believed there is a reasonable possibility that will occur so as to obviate the need for the requested hearing. However, those negotiations are continuing, and may not be resolved by the proposed September 29, 19995 hearing date. Certainly they will not be resolved in time for Phillips to properly prepare for a September 29 hearing. Hence it is respectfully requested that the subject heating be continued for thirty (30) days, SEP 1 4 1995 AJi~sJ~3 ~Jl & Gas Cons. DELANEY, WILES. HAYES. GERETY & ELLIS. INC. SUITE 400 1007 WEST 3RD AVENUE ANCHORAGE. ALASKA (907) 279-3581 or October 30, 1995, so as to afford the parties a full oppommity to resolve this dispute, or, in the alternative, to afford Phillips a reasonable oppommity to prepare for the hearing. The undersigned is authorized to state that Stewart has no objection to this request for a continuance. DATED AT Anchorage, Alaska this 14th day of September, 1995. DELANEY, WILES, HAYES, GERETY & ELLIS, INC. Attorneys for Phillips Petroleum Company Stephen M. Ellis SEP 14 1995 Gas Cons. CQmniissi.o.n 97113 STOF0330 PO ~02614012 $78.00 AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT. ) Eva M. Kaufmann being first duly sworn on oath deposes and says that he/she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on August 30, 1995 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged pr~ Notary Pubil/c in and for the S~te of Alas~. ~lrd D~lsion. Anchorage, Alaska ..... / ........... 'NOtice of p'ubli~, ~ri.g ~ STATE'OF ALASKA ,, Oil ond Gus ¢omervotion ,I , ' : 'commission , Re: The application of STEWART ,"PETROL"EUM COMI~AN,Y' for' exception ~o 20 AAC 25~055 tO allow drilling the WEST' MCARTHUR RIVER UNIT No. 4.'exgloratory oil 'and g~s ,well. , , , '~'~?~,:S ~E,~ T,: ",P E,~ R 0 L E U.M ;:~P~'~.b~<~l~t~r~,,dot~',~- ~e..o,;-':~ me,,~ov,~p:gs .'o~," !lnlet:....,.:.., ~; . . ._.:...':] . The :'e~epti0~ would allOW :.r~fi:.'.:l., :-~" the"W~sf. :.',:.~-,.. El.,',- L' ' NO. 4'ex- pr~uc;~ve' I,OC~non .;nat ig'dos~ er then- TS0p' feet from' o' section line.. ;he'.;~ll is 'blAo ~0iec:ted ~rge~'.: ~it~ifi ~ ~et of'~ ter Secfio~~.' Ih~.:'.'The '.Prop~seo S~rfa'ce' IO~0tion' ~i5~ 2026'~.~0'm t~e south line ~nd'1974' from the west line (FWL) of Section 16, TSN, R14W, Seward /~eridlon (S~7 and th~ proposed bott~m- hole location is 1.088' fro'm the north line '~nd' 200' FWL' of Section 22, TSN, R14W, A person who may be harmed if th~ r~qu~sted 'order i5 Issued may 'file a. wriften protest,~ri~r fo 4:00 p.m.' September ]4. ~.~ with: the Alaska Oil 'and- Codservofion Commission;.. 3001 Porcbplne' Orive; Ancho'~ge, Al'osko 99501, and re;uest hearing o~ the matter. If the ~ot.e~t.' is.. ,ti ~el y .filed..and ~Ise5. o ~u~f:antial:on~ ~ter - 31..Is~ue.c~ciol'.to the C'ommis- .sion'~'determino~jon, o h'eadne o~ 'the'~o'ffeEwill be held a't the ~bo~e o~dres5, at 9:00 a.m. on Aueust 29, 1;¢5.in conformance with 20 AA; 2~;540. If a hearing is to be.held, .i~terested p~rtles may t~nfiFm thi~ by colli~ the Com~ission~~' ~79q~33., ~f~ '~mbeF"J ~'; 199i If no protest'is filed, fha gom~ Ssion," .wil. :" cons .der fbe issuo'nce ~f:th~"O'rde~' w th°~t .. :h'~'O'f~"q;~::,'~' ..':&; '.' "* :'.... ,.:~,:'.~. :~.' ~: .. :f' ~"~re, o .~er;6n. with Idisobifitv who may need o spe- .Icial .~odification in order fo 'lcom~nt.'~Y to attend.the public [heorin~,.please contact Diana iFleck et 279-1433 no .later than · .~: .;' :' '.. ,.;... ::"~}."'[ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of STEWART PETROLEUM COMPANY for exception to 20 AAC 25.055 to allow drilling the WEST McARTHUR RIVER UNIT No. 4 exploratory oil and gas well. STEWART PETROLEUM COMPANY by letter dated August 23, 1995 has requested an exception to the provisions of 20 AAC 25.055(a)(2) & (3) for the drilling of an exploratory oil and gas well in the West McArthur River Unit, in the Cook Inlet. The exception would allow Stewart Petroleum Company to directionally drill the West McArthur River Unit No. 4 exploratory well to a potentially gas productive location that is closer than 1500 feet from a section line. The well is also projected to encounter a secondary oil target within 500 feet of a quarter section line. The proposed surface location is 2026' from the south line and 1974' from the west line (FWL) of Section 16, T8N, R14W, Seward Meridian (SM) and the proposed bottom-hole location is 1088' from the north line and 200' FWL of Section 22, T8N, R14W, SM. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM September 14, 1995 with the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on the matter. If the protest is timely filed and raises a substantial and material issue crucial to the Commission's determination, a hearing on the matter will be held at the above address at 9:00 am on September 29, 1995 in conformance with 20 AAC 25.540. If a hearing is to be held, interested parties may confirm this by calling the Commission's office, (907) 279-1433 after September 14, 1995. If no protest is filed, the Commission will consider the issuance of the order without a hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Diana Fleck at 279- 1433 no later than September 25, 1995. Published August 30, 1995 Russell A. Douglass, Commi~'sioner Alaska Oil and Gas Conservation Commission AO-02614012 Stewart petroleum Company .- Denali Towers North, Suite 1300 2550 Denali Street, Anchorage, Alaska 99503 (907) 277-4004 · FAX (907) 274-0424 August 23, 1995 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Attn: Mr. Robert P. Crandall, Senior Petroleum Geologist Re: Application for Exemption to Provisions of 20 ACC 25.055 Drilling Units and Well Spacing West McArthur River Unit #4 AUG 25 1995 ,~aska U~l & Eias Cor~$. Ancl~orage Mr. Crandall: Stewart Petroleum Company hereby makes application to the Alaska Oil and Gas Conservation Commission for an exemption to the drilling unit and spacing requirements of 20 ACC 25.055 as they pertain to the proposed bottomhole location of the West McArthur River Unit Well No. 4. The proposed BHL for No. 4 is: 200' FWL and 1088' FNL of Section 22, T8N, R14W, SM West McArthur River Unit No. 4 will be drilled as a development gas well to the Lower Tyonek sands with a secondary oil target being the Hemlock. An exception to 20 ACC 25.055 is required because the WMRU #,4 gas target will be closer than 1500' to a section line and the potential oil target will be closer than 500' t° a quarter section line. All other state spacing requirements will be met by the proposed BHL for WMRU No. 4; i.e., any perforated gas intervals will be more than 1500' from any lease line and more than 3000' from any existing gas well, and any perforated oil intervals will be more than 500' from any lease line and more than 1000' from any existing oil producer. Attached is a map indicating the sections offsetting the proposed WMRU #4 and a table describing the ownership of all offsetting sections. Since Unocal, Phillips and CIRI are affected owners of offsetting sections, a notification has been sent to them by certified mail and a copy is enclosed indicating the date of delivery. West McArthur River Unit ~, ,//4 Spacing Exception Application Also attached is a map of all existing wells in the area. The final map indicates the proposed well path for WMRU #4 and the corresponding distance from the proposed well to the nearest lease line and to the nearest existing well capable of gas production. The undersigned hereby verifies that he is acquainted with the facts surrounding this application for exemption and that the facts presented in this application including the attachments are true and correctly portray all pertinent and required data as defined in 20 ACC 25.055(a)(1) and (b). If there are any questions, please contact me at 277-4004. Tim A. Biilingsley Petroleum Engineer Stewart Petroleum Company CC: Paul D. White, Operations Manager- Stewart Petroleum Company William R. Stewart, President- Stewart Petroleum Company Attachments: Map with Adjoining Sections to WMRU #4 Table of Offsetting Section Ownership Map of Proposed WMRU #4 Location with Offset Wells Map of Proposed WMRU #4 Well Path Copy of Notification of Offset Owners ¢ AUG 23 1995 Alaska Oil & Gas Cons. Commission : /achorage West McA~hur River Unit Unit Boundary Plat Proposed WMRU No. 4 T8N~ R14W, Seward Meridian i7 2o WMRU3 #1 #2A ® I 0 WFU-2 WMRU ¢4 Proposed 15 AD[ 17602 Unoca! 11 WF~ 22 23 ~4 Phillips A035017 29 Coot h'/et Bluff 32 33 26 35 AUG 25 ~995 25 36 1" = 1 mile WMRU ~4 Spacing Exception Section Ownership Section Leasee ADL ~_ Unit T8N, R14~--~_ Lease # 14 Unocal 17602 15 Stewart Petroleum Co. 35911 West McArthur River Unit ...... 16 Stewart Petroleum Co. 35912 West McArthur River Unit , ,__ ClRI 21 Stewart Petroleum Co. 35912 West McArthur River Unit Phillips A-035901'7 ClRI 22 "'Stewart Petroleum Co. 35912 West McArthur River Unit 23 Stewart Petroleum Co. 35912 West McArthur River Unit 26 Stewart Petroleum Co. 381.012 27 Stewart Petroleum Co. 38;I 012 Phillips A-0359017 ClRI 28 Phillips A-0359017 ClRI OWNERS.XLS West McArthur River Unit No. 4 Proposed Location Section 9 / /. Section 10 ,/ / ./ / · VV~RU #3 / WMRU #1 ..0 4 WMRU #2A ,. ,. I Section 15 ,. ,.~WFU #2 WMRU #4 Proposed Top Perf WMRU #4 Proposed TD West Foreland #1 Section 21 Section 22 AUG 2b 1995 .Oil & Gas Cons. Commission , N~chorage 1" = 2000' West McArthur River Unit No. 4 Proposed Well Path of WMRU #4 West Foreland Unit #2 Section 16 Section 21 Section 15 Section 22 Top of Gas Target @ 700' FNL, 200' FWL Proposed TD of WMRU #4 @ 1088' FNL, 200' FWL I I I I I ~1III I I I I West Foreland #1 880' FSL, 671' FEL 1" = 1000' Stewart P Company Denali ~e. rs North, Sui~ 1300 ' 2550 Denali .~re~t, Anchorage, Alaska 99503 (907) 2704004 · FAX (907) 274-0424 , August 23, 1995 Cook Inlet Region, Inc. P. O. Box 93330 Anchorage, Ak 99509-330 HAND DEL . , / Attn: Mr. Jerry Booth Re: Application for Exemption to Provisions of 20 ACC 25.055 Drilling Units and Well Spacing West McArthur River Unit ~4 Mr. Booth: Stewart Petroleum Company hereby notifies Cook Inlet Region, inc. that an application will be submitted to the Alaska Oil and Gas Conservation Commission for an exemption to the ddlling unit and spacing requirements of 20 ACC 25.055 as they pertain to the proposed bottomhole location of the West McArthur River Unit Well No. 4. The proposed BHL for No. 4 is: 200' FWL and 1088' FNL of Section 22, T8N, R14W, SM This proposed BHL will be in the northwest quaffer of Section 22. West Mc. Arthur River Unit No.4 will be drilled as a gas well in the Lower Tyonek sands with an oil exploration tail to the Hemlock. An exception to 20 ACC 25.055 is required because the WMRU ~ gas target will be closer than 1500' to a section line and the potential oil target will be closer than 500' to a quarter section line. All other state spacing requirements will be met by the proposed BHL for WMRU No. 4; i.e., any perforated gas intervals will be more than 1500' from any lease line and more than 3000' from any existing gas well, and any perforated oil intervals will be more than 500' from any lease line and more than 1000' from any existing oil producer. Attached is a map indicating the sections offsetting the proposed. WMRU ~ gas well and a table describing the ownership of all offsetting sections. Cook Inlet Region, Inc. is being notified because of your subsurface ownership rights in Sections 16, 21, 27 and 28 which offset the Section 22 in question. ' '"'"'ED' AUG 25 1995 Oil & Gas Cons. Commission Anchorage West McArthur giver Unit,.. ~11 Spacing Exception Application If there are any questions, please contact me at 907-277-4004.. ~ , Tim A. Petroleum Engineer Stewart Petroleum Company Paul D. White, Operations Manager- Stewart Petroleum Company William R. Stewart, President- Stewart Petroleum Company James Segura, Salamatof Native Association Attachments: Map with Adjoining Sections to WMRU #4 Table of Offsetting Section Ownership Map of Proposed WMRU ~4 Location with Offset Wells Map of Proposed WMRU #4 Well Path AUG 2~ ~995 u~[ & Gas Cons. Commi~t~ ~chorage UNITED S~I'ATES POSTAL SERVICE OFFICIAL BUSINESS SENDER INSTRUCTIONS Print your name, addresa and ZIP Coda In the space below. · Complete It®ma 1, 2, 3, and 4 on the * Attach to front of article If apace' permita, otherwise affix to back of artiCle. , * Endorse article "Return Receipt Roqueated" adjacent to number. PENALTY FOR PRIVATE USE, 9300 RETURN TO Print Sen'der's name, address, and ZIP'Code in the, space below. ' .., ,~~ ~ ,,,',~, ~.~ I "~ENDER: C~r~Plete iter~'s 1 'an~ ~ ~hen additional Services:are desired, 'and complete 'items.. w *3 and ~4. Put your address in the "RETURN TO" SPace on the reverse side. Failure to do this will prevent this carG from being returned to you. T. he~retum receipt fee will provide you the nameof the person delivered t6~andthe date of delivery. For aclditlOhal fees. th~ foll'Owi~g sdrvices are ~Jvailable, c6nsult postmaster tot fees and checkbox(es) for additional Service(s) requested. _ 1'. [] ShOw to Whom delivered, date, and addresSee's address. 2. [] Restricted Delivery .. _~.. ~ ...... ~ ~.~.~ ......... -3~.-,' ArticleAddressed tO:' 4. Article Number' T~'pe of Servi~e: ....... ~ Registered r"l Insured I-/Ce~if~ed F-I coo Return Recei t r-'l Express ,MaiI q for Merchan~se ..... Always Obtain Slgnatur. of address, ?~ / ,r'"" 0ragent and DATE DEL. IVERED.Z////q,~ I 8. Addressee's Address (ON//~/~ * U.S.G.P.O. 1988-2t2-865 DOMESTIC RETURN RECEIPT Stewart Company Denali Tow~.. rs North, Suite 1300 2550 Denali S~rre~t, Anchorage, Alaska 99503 (907) 27%4004 · FAX (907) 274-0424 .... "'"-"'~"'" August 8, 1995 Unocal Corporation 909 West 9th Ave. Anchorage, Alaska 99501 Attn: Mr. Kevin Tabler Re: Application for Exemption to Provisions of 20 ACC 25.055 Ddlling Units and Well Spacing West McArthur River Unit #4 Mr. Tabler: Stewart Petroleum Company hereby notifies Unocal Corporation that an application has been submitted to the Alaska Oil and Gas Conservation Commission for an exemption to the drilling unit and spacing requirements of 20 ACC 25.055 as they pertain to the proposed bottomhole location of the West McArthur River Unit Well No. 4. The proposed BHL for No. 4 is: 200' FWL and 1088' FNL of Section 22, T8N, R14W, SM This proposed BHL will be in the northwest quarter of Section 22. West Mc, Arthur River Unit No.4 will be drilled as a gas well in the Lower Tyonek sands with an oil exploration tail to the Hemlock. An exception to 20 ACC 25.055 is required because the WMRU ~ gas target will be closer than 1500' to a section line and the potential oil target will be closer than 500' to a quarter section line. Ali other state spacing requirements will be met by the proposed BHL for WMRU No. 4; i.e., any perforated gas intervals will be more than 1500' from any lease line and more than 3000' from any existing gas well, and any perforated oil intervals will be more than 500' from any lease line and more than 1000' from any existing oil producer. Attached is a map indicating the sections offsetting the proposed,WMRU #.4 gas well and a table describing the ownership of all offsetting sections. Unocal is being notified because of your ADL 17602 lease which contains Section 14 and diagonally offsets the ..,. Section 22 in question. ' ' ~ West'McArthur River Unit{.~ . ~ll//4 Spacing Exception Application If there are any questions, please contact me at 277-4004. Tim A. Bfl Ingsley Petroleum Engineer Stewart Petroleum Company Paul D. White, Operations Manager- Stewart Petroleum Company William R. Stewart, President- Stewart Petroleum Company Attachments: Map with Adjoining Sections to WMRU ~ Table of Offsetting Section Ownership Map of Proposed WMRU #4 Location with Offset Wells Map of Proposed WMRU #4 Well Path Stewart P, oleum Company Denali Towers North, Suite 1300 2550 Denali ~tre~t, Anchorage, Alaska 99503 (907) 277..4004 · FAX (907) 274-0424 .- August 8, 1995 Phillips Petroleum Company NA E&P Business Development 6330 West Loop South Bellaire, Tx 77401 Attn: Mr. Brett Butterfield, General Landman- Alaska Re: Application for Exemption to Provisions of 20 ACC 25.055 Ddlling Units and Well Spacing West McArthur River Unit #4 Mr. Butterfield: Stewart Petroleum Company hereby notifies Phillips Petroleum Corporation that an application has been submitted to the Alaska Oil and Gas Conservation Commission for an exemption to the drilling unit and spacing requirements of 20 ACC 25.055 as they pertain to the proposed bottomhole location of the West McArthur River Unit Well No. 4. The proposed BHL for No. 4 is: 200' FWL and 1088' FNL of Section 22, T8N, R14W, SM This proposed BHL will be in the northwest quarter of Section 22. West McArthur River Unit No.4 will be drilled as a gas well in the Lower Tyonek sands with an oil exploration tail to the Hemlock. An exception to 20 ACC 25.055 is required because the WMRU #4 gas target will be closer than 1500' to a section line and the potential oil target will be closer than 500' to a quarter section line. All other state spacing requirements will be met by the proposed BHL for WMRU No. 4; i.e., any perforated gas intervals will be more than 1500' from any lease line and more than 3000' from any existing gas well, and any perforated oil intervals will be more than 500' from any lease line and more than 1000' from any existing oil producer. Attached is a map indicating the sections offsetting the proposed WMRU ~ gas well and a table describing the ownership of all offsetting sections. Phillips is being notified because your A-035017 lease contains Sections 21 and 28 which offset the Section 22 in question, j;~ ........~ ~ , :',.. ~ '~ AUG 2.5 1995 Atask~ 0il & Gas Cons. Commission Anchorage West McArthur River Unit'..~l Spacing Exception Application If there are any questions, please contact me at 907-277-4004. ! Tim A. y Petroleum Engineer Stewart Petroleum Company CC: Paul D. White, Operations Manager- Stewart Petroleum Company William R. Stewart, President- Stewart Petroleum Company Attachments: Map with Adjoining Sections to WMRU ~ Table of Offsetting Section Ownership Map of Proposed WMRU g4 Location with Offset Wells Map of Proposed WMRU tht Well Path AU6 23 1995 Gas Cons. C0mmissl0a Aaohorage UNITED STATE8 POSTAL SERVICE OFFICIAL BUSINESS SENDER INSTRUCTIONS Print your nam, adclre~ end ZIP Coda i.n the apace below. ,-- Complete item81, ,,2~ ~; and 4 on thc reveres. · Attaah tO freer'of article if opa~ permltn, otherWloe affix to back of article. ,, · Endorse.article '"'Return Receipt' Requ.e~tad" adjacent to number. RETUtm TO U.S. MAIL PENALTY 'FOR' PRIVATE USE, $30,0 Print Sender's name. address, end ZIP Code in the space below. postmaster ' i::.!i: :~;:... [] .ReetriOted..~,livery :.!::: :::?, :'i: ':':::~," .' · .. .. ., E l' ' !" I--I. COD El' R~tum Recei .. for -. addre~ee .. DATE DELIVERED. =Address · . · .. ':':8; ~Addressee s Address (OJV~.iT/ · . ,~', :.. ::'..;i~" .;' ": :;" ·'."i" :.~:~'; .' . ; :"~... ,.~-... ,.:,-.~: .,.,'":'.. :': ":':': ~':"~::'.'-'~ '... '. ':.'::.ir '" " ' :): . · ,::....: . · : .. , .::: .: · :.: ..,.'l~a.~p:~"'i-.~i'~:~2~'~"~'ae.5 .... :.".. DOME~TICRETURN'RECEIPT. .' ':":" .' :!'.'i.. 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