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Index Conservation Order 381
Niakuk #2
1.) May 16, 1996 ARCO Alaska, Inc. Requests for Spacing Exception
2.) May 18, 1996 Notice of Public Hearing, Affidavit of Public Hearing
Conservation Order 381
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re~
THE APPLICATION OF ARCO )
ALASKA, INC. for an order granting )
an exception to spacing requirements )
of Title 20 AAC 25.055 to )
provide for the drilling of the )
West Niakuk No. 2 delineation oil )
well in the Prudhoe Bay Unit. )
Conservation Order No. 381
ARCO Alaska, Inc.
West Niakuk No. 2
June 4, 1996
IT APPEARING THAT:
1. ARCO Alaska, Inc. submitted an application dated May 16, 1996 requesting
exception to the well spacing provisions of Title 20 AAC 25.055 (3) to allow drilling
the ARCO West Niakuk No. 2 delineation oil well to an undefined oil pool, with a
producing location within 500 feet of a quarter section line, adjacent to the Niakuk
Participating Area on the North Slope.
2. Notice of opportunity for public hearing was published in the Anchorage Daily News
on April 18, 1996 pursuant to 20 AAC 25.540.
3. No protests to the application were received.
FINDINGS:
1. The West Niakuk No. 2 delineation oil well will be drilled as a deviated hole with a
surface location 1258' from the south line (FSL) and 1112' from the east line (FEL) of
Section 36, T12N, R15E, Umiat Meridian (UM) and a proposed producing location 2519'
FSL and 2909' FEL of section 22, T12N, R15E, UM.
2. Offset owners BP Exploration (Alaska) Inc., Exxon Corporation and the State of
Alaska have been duly notified.
3. An exception to the well spacing provisions of Title 20 AAC 25.055 (3) is necessary
to allow the drilling of this well.
Conservation Ord":.
June 4, 1996
page 2
CONCLUSION:
Granting a spacing exception to allow drilling of the ARCO West Niakuk No. 2 well will
not result in waste nor jeopardize correlative rights.
NOW, THEREFORE, IT IS ORDERED:
ARCO Alaska, Inc.'s application for exception to the well spacing provisions of Title 20
AAC 25.055 (3) for the purpose of drilling the Arco West Niakuk No. 2 is approved.
DONE at Anchorage, Alaska and dated June 4, 1996.
David ~,V. Johnston, ( ~airman
Alaska O,~x.and Gas Cc aservation Commission
Tflckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission
AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected
by it may file with the Commission an application for rehearing. A request for rehearing must be received by
4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely
filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission
can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date
the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the
final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by
nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the
request is deemed denied (i.e., l0th da), after the application for rehearing was filed).
ARCO Alaska, Inc.
Post Office Box 100360
Anchorage, Alaska 99510-0360
Telephone 907 276 1215
Joseph A. Leone
Manager
Greater Pt. Mclntyre Area
May 16, 1996
Mr. David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission
3001 Porcupine Drive
Anchorage, Alaska 99501-3192
RE'
~ C, OlVlIVl _
_
_
RES ENG _
SR ENG _
,
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STAT TECH, _
Request for Exception to the Provisions of 20 ACC 25.055
West Niakuk Well #2, Prudhoe Bay, Alaska
Dear Chairman Johnston'
ARCO Alaska, Inc. ("ARCO"), for itself and on behalf of Exxon Company, USA ("EXXON"),
hereby applies for an exception to the provisions of 20 AAC 25.055 for the drilling and completion
of West Niakuk No. 2 Exploration Well (the "Well"). The proposed target is within 500' of a
governmental quarter section under lease ADL 34626. The Well will be drilled as a directional hole
as follows:
Surface Location:
1258' FSL, 1112' FEL, Sec. 36, T12N, R15E, UM.
Top Kuparuk Target: 2519' FSL, 2909' FEL, Sec. 22, T12N, R15E, UM.
Bottom Hole Location: 3184' FSL, 3603' FEL, Sec. 22, T12N, R15E, UM.
The target and proposed perforated interval is in the southwest quarter section of Section 22.
However, due to horizontal directional uncertainty, and the close proximity to the quarter section
lines, the actual target penetration could be in any of the four quarter sections. To account for this
possibility, the notice for a request of exception is being sent to all owners and operators of
governmental quarter sections directly and diagonally off-setting each quarter section of Section 22.
A plat showing the top Kuparuk location for the proposed well, all other completed and drilling wells
on the property, and all other adjoining properties and wells is attached as Exhibit 1. The names
and addresses of all owners and operators of the governmental quarter sections directly and
diagonally offsetting the proposed drilling unit for the well are set forth in Exhibit 2. Included in
Exhibit 3 is the verification required by the referenced provisions, a copy of the notice sent to the
owners and operators listed in Exhibit 2, and the date such notice was mailed.
Sincerely,
J. ^. Leone
Attachments
cc: J.F. Branch, Exxon
J. R. Winegarner, ATO 1469
RECEIVED
MAY 1 7 1996
&l~k~ G! & ~s Cons. Commtsskm
ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfieldCompany
Exhibit 2
West Niakuk #2
Request for Spacing Exception
Working Interest Owners
Exxon Corporation
P.O. Box 2180
Houston, TX 77252-2180
Attn: Mr. M. Michael McNulty
BP Exploration (Alaska)Inc.
P.O. Box 196612
Anchorage, AK 99519-6612
Attn: Mr. Al N. Bolea
Royalty Owners
State of Alaska
Department of Natural Resources
Division of Oil and Gas
P.O. Box 107034
Anchorage, AK 99516
Attn: Mr. Kenneth A. Boyd, Director
Overriding Royalty Owners
Not Applicable
RECEIVED
MAY 1 7 199~;
EXHIBIT 3 t"" ~'
TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION
Before the Commissioners of the
Alaska Oil and Gas Conservation
Commission in the Matter of the
Request of ARCO Alaska, Inc. for
an Exception to the Provisions
of 20 AAC 25.055 for West Niakuk
No. 2 Well
VERIFICATION OF FACTS AND
AFFIDAVIT OF Eric W. Reinbold
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
SS,
Eric W. Reinbold, being first duly sworn, upon oath, deposes and states as follows:
1. My name is Eric W. Reinbold. I am over 19 years old and have personal
knowledge of the matters set forth herein.
2. I am a Senior Engineer for the well operator, ARCO Alaska, Inc.
3. I am acquainted with the facts associated with the drilling of West Niakuk No. 2
exploratory oil well.
4. I have reviewed the application submitted for the exception to 20 ACC 25.055.
To the best of my knowledge and belief all facts therein are true and accurate.
5. I have reviewed the plat attached as Exhibit I and it correctly portrays pertinent
and required data.
6. Pursuant to 20 AAC 25.055 (b), ARCO Alaska, Inc. ("ARCO"), the well operator,
prepared a Notice of Request for Exception to the Provision of 20 AAC 25.055. A copy of this
notice is attached hereto.
7. On May 16, 1996, pursuant to 20 AAC 25.055 (b), ARCO sent a copy of said
notice by certified mail to the last known address of all owners and operators of governmental
quarter sections directly and diagonally offsetting the governmental quarter section of the
proposed locations of ARCO's West Niakuk No. 2 well. These names and addresses are set
forth on Exhibit 2 attached to ARCO's Request for Exception to Provisions of 20 AAC 25.055
dated May 16, 1996.
Subscribed and sworn to this 16th day of May, 1996.
STATE OF ALASKA
Eric W. Reinbold
RECEIVED
THIRD JUDICIAL DISTRICT )
Alaska 0il & Gas Con~. Commission
The foregoing instrument was acknowle...,dged before me this 16th day of M~:~,h~r~q~6, by
Eric W'Re'i[[-I~:~(";';':,~ /) ~'~ ~~
o~" '~'-". ;,'r~
..~. · ..~,~- ~ '--
.~ c~. ~OTA/~ .~A ,--
:: .: --- l':-. =.... Notary Public, State of Alaska /,,~
": ' '~°/JBL%C-' : D, My Commission Expires: /
:,,. ... .,,.- .~
'....,,. -.R,~ '-,-~" .9
,% ':..." ,~'
)
) ss. MAY 17 199r~
ARCO Alaska, Inc.
Post Office Box 100360
Anchorage, Alaska 99510-0360
Telephone 907 276 1215
Joseph A. Leone
Manager
Greater Pt. Mclntyre Area
May 16, 1996
BP Exploration (Alaska)Inc.
P.O. Box 196612
Anchorage, AK 99519-6612
Attn: Mr. Al N. Bolea
Exxon Corporation
P.O. Box 2180
440 Benmar
Houston, TX 77252-2180
Attn: Mr. M. Michael McNulty
State of Alaska
Department of Natural Resources
Division of Oil and Gas
P.O. Box 107034
Anchorage, AK 99516
Attn: Mr. Kenneth A. Boyd, Director
RE:
Notice of Request for Exception to the
Provisions of 20 ACC 25.055
West Niakuk Well #2, Prudhoe Bay, Alaska
Pursuant to the provisions of 20 AAC 25.055 (b), ARCO Alaska, Inc. hereby gives
notice of a request to the Alaska Oil and Gas Conservation Commission (AOGCC) for
an exception to the well spacing requirements of 20 AAC 25.055.
ARCO's request, if approved, will permit the drilling and completion of the West Niakuk
No. 2 well as a directional hole with a proposed top Kuparuk target location 2519'
FSL, 2909' FEL, Sec. 22, T12N, R15E, UM. The proposed target is within 500' of a
governmental quarter section under lease ADL-34626. The target and proposed
perforated interval is in the southwest quarter section of Section 22. However, due to
horizontal directional uncertainty, and the close proximity to the quarter section lines,
the actual target penetration could be in any of the four quarter sections.
A copy of the Request for Exception is attached for reference.
Sincerely,
J. A. Leone
Attachments
cc: J.R. Winegarner, ATO 1469
RECEIVED
MAY 1 7 1995
Alaska 011 & Gas Cons. Commilltolt
.anchorage
ARCO Alaska, Inc. is a Subsidiary of AtlanticRichfleldCompany
FROM: RRCO 6PMA ATO-4
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05-16-96 16:28 P.02
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FROM:
ARCO GPMA ATO-4
FAX NO.:
2634894
05-16-96
16:28
P .03
Exhibit 2
West Niakuk #2
Request for Spacing Exception
Workin~ b~erest Owners
--
Exxon Corporation
P.O. Box 2180
Houston, TX 77252-2180
Attn: Mr. M, Michael McNulty
BP Exploration (Alaska) Inc.
P.O. Box 196612
Anchorage, AK 99519-6612
Attn: Mr, Al N. Bolea
Royalty Owners
State of Alaska
Department of Natural Resources
Division of Oil and Gas
P.O. Box 107034
Anchorage, AK 99516
Attn: Mr. Kenneth A. Boyd, Director
gverridin~_ Royalty ~
Not Applicable
FROM:
ARCO GPMA ATO-4 FAX NO.: 2634894 85-16-96
TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION
16:29
P .04
Before the Commissioners of the
Alaska Oil and Gas Conservation
Commission in the Matter of the
Request of ARCO Alaska, Inc. for
an Exception to the Provisions
of 20 AAC 25.055 for West Niakuk
No. 2 Well
VERIFICATION OF FACTS AND
AFFIDAVIT OF Eric W. Reinbold
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
SS,
Eric W. Reinbold, being first duly sworn, upon oath, deposes and states as follows:
1. My name is Eric W. Reinbold. I am over 19 years old and have personal
knowledge of the matters set forth herein.
2. I am a Senior Engineer for the well operator, ARCO Alaska, Inc.
3. I am acquainted with the facts associated with the drilling of West Niakuk No. 2
exploratory oil well.
4, I have reviewed the application submitted for the exception to 20 ACC 25,055,
To the best of my knowledge and belief all facts therein are true and accurate.
,6. I have reviewed the plat attached as Exhibit I and it correctly portrays pertinent
and required data.
6. Pursuant to 20 AAC 25.055 (b), ARCO Alaska, Inc. ("ARCO"), the well operator,
prepared a Notice of Request for Exception to the Provision of 20 AAC 25,055. A copy of this
notice is attached hereto,
7. On May 16, 1996, pursuant to 20 AAC 25.055 (b), ARCO sent a copy of said
notice by certified mail to the last known address of all owners and operators of governmental
quarter sections directly and diagonally offsetting the governmental quarter section of the
proposed locations of ARCO's West Niakuk No, 2 well. These names and addresses are set
forth on Exhibit 2 attached to ARCO's Request for Exception to Provisions of 20 AAC 25.055
dated May 16, 1996.
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Subscribed and sworn to this 16th day of May, 1996.
Eric W. Reinhold
)
) ,SS,
)
The foregoing instrument was acknowl~e.~ged before me this 16th day of May, 1996, by
m~.O~'.~I~OTA~"t'v'~..-- . _ ' Notary Public, State of Alaska / /
~ : PUBL%G ! ~ My Commission Expires: !_ !. ,/,2 c//?~7
/"/,,~ ~ ~ ?~',., ~ ~ I'~¥~'
FROM:
ARCO GPMA ATO-4 FAX NO.:
AFIGO Alaska, Inc.
Post Office Box 100360
Anchorage, Alaska 99510-0360
Telephone 907 276 1215
Joseph A. Leone
Manager
Greater Pt. Mclntyre Area
2634894
05-16-96 16:29 P.05
May 16, 1996
BP Exploration (Alaska)Inc.
P.O. Box 196612
Anchorage, AK 99519-6612
Attn: Mr. Al N. Bolea
Exxon Corporation
P.O. Box 2180
440 Benmar
Houston, TX 77252-2180
Atln; Mr, M. Michael McNulty
State of Alaska
Department of Natural Resources
Division of Oil and Gas
P.O, Box 107034
Anchorage, AK 99516
Attn: Mr. Kenneth A. Boyd, Director
RE:
Notice of Request for Exception to the
Provisions of 20 ACC 25.055
West Niakuk Well #2, Prudhoe Bay, Alaska
Pursuant to the provisions of 20 AAC 25.055 (b), ARCO Alaska, Inc. hereby gives
notice of a request to the Alaska Oil and Gas Conservation Commission (AOGCC) for
an exception to the well spacing requirements of 20 AAC 25.055,
ARCO's request, if approved, will permit the drilling and completion of the West Niakuk
No. 2 well as a directional hole with a proposed top Kuparuk target location 2519'
FSL, 2909' FEL, Sec. 22, T12N, R15E, UM. The proposed target is within 500' of a
governmental quarter section under lease ADL-34626. The target and proposed
perforated interval is in the southwest quarter section of Section 22. However, due to
horizontal directional uncertainty, and the close proximity to the quarter section lines,
the actual target penetration could be in any of the four quarter sections.
A copy of the Request for Exception is attached for reference.
Sincerely,
J. A. Leone
Attachments
cc: J.R. Winegarner, ATO 1469
ARCO AI~SI(~I, Inc. is a St,bsidiary of AllanticRichlteldCol'l~al~y
Notice of Public Hearing
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re.'
The application of ARCO ALASKAi Inc. for exception to 20 AAC
25.055 to allow drilling the West Niakuk No. 2 delineation oil well.
',
ARCO Alaska, Inc. by letter dated May 16, 1996 has requested an
exception to the provisions of 20 AAC 25.055(a)(3) to allow the directional
drilling of the West Niakuk No.'2 delineation oil well to a producing location
that is closer than 500 feet from a quarter section line. The proposed
surface location is 1258' from the south line (FSL) and 111 2' from the .east
line (FEL) of Section 36, T12N, R15E, .Umiat Meridian (UM) and the proposed
producing location is 2519' FSL and 2909"FEL of Section 22, T12N, R15E
UM.
A person who may be harmed if the requested order is issued may file a
written protest prior to 4:00 PM 'June 3, 1996 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 June
18, 1996 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 June 3, 1996. If no protest is filed, the Commission will
consider the issuance of the order without a hearing.
If
modification in orde~
contact Diana Fle~~
D avl-'~~."~oh ns
Alaska Oil a~
you are a person with a disability who may need a special
~-h-d~e public hearing, please
~n, L, ommlss~
Is Conservation Commission
Published April 18, 1996
A0-02614046
~I9350
STOF 0330 'i il
A0-02614046
AFFIDAVIT
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
May 18, 1996
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 private
individuals.
Subscribed and swor%/~ ~'e~ore
me this ..c~./day of ~/"'/"/" : .~//....
the State of Alaska.
Third Division.
Anchorage, Alaska
MY COJVIMISSION EXP]R£S
OF
PUBLiCATiON
N(~tice o'f public Hearing
STATE OF ALASKA:', , I
Ales[m Oil and Gas '
. Conservation COmmission,
! ,.?i'1"' I',i/,/",,.,,~, .-,. ,.'>.,~I "· '~.
.R.e.:~=T.h~..~lppllcatioll~ of ARC01t
. .~,I~A~K~'~ I~iC.. 'fO/'" ~XCeption toll
20.'~C '2~,f"to '~liow drilli"
il '" ocoti(~n ~i$'1258, fron
'the,south 'line CFSL) .and H12
~roh~'~.tl~e. least line' .(F:F'L) o
· Section'i.36~. 1'~2N,'~, R~SI~, ~mio'
~eridlan.~':'¢UM).~]nd the Pro.
p~Sed' ~r°ducing' location is
2519~'.'. F$'L.. and 2909'.,F:EL al
Sectl~h" 2Z '¥~2N, Ri~, UM.
A PUrSe" Who may be harmed if
the requested order is issued
may file a-written Protest priorI
to 4:'00 P~ ;June 3, 1996 with thel
~lqska.. Oil and. Gas. (:onservo-
tlon (:ommlssion, '3(]01 Porcu.I
pin~ D'rive, .'Anchor0ge, Alaska|
9.950L and request a hud'ring on |
~h~ ~atter. If. the protest
timel~:, fil~d and raises a|
substantial and material issue|
crucial to the (:ommission's~
determination, o hearing on the'
mcittef.'wifl be held at the above
a~lc~ness at 9:00 am on .June 18,
199~ "in conformance with 20
,~,C: 25.540. If o hearing is to be
h~ld,, interested .port es may
coh'flr~: this by' calling the (:om.
df1~ '.Jun~':~,.:'i'9~:'lf no protest f
is "f~i~d, the Commission wiJfI
c6~'slder the i~suance of the f
or~lpr' Without.'0 "hearing, /
."If ~ou.are 0 person with. al
disability :who may need a spe-/
cial.'mbdiflc0tlon in order to|
~:0~lment or to attend the public |
h. ear~n.a. ~.C?. ::r'=-, 'Diana
I,,~.:" .'!: :,,'.% :?~ "' ,::,'~'
I'/~,~:?~ohn+~ ,:,"':', II
. ,,, , ," a uii, ,
I.'. ,.' ¢0mmis$1oner ., ..
J.~'lOSka Oil and Gas '
=.,'.., ;;, . ..... · ,
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