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HomeMy WebLinkAboutCO 431• • Index Conservation Order 431 Tarn 2N-337A 1.) June 16, 1998 ARCO, Alaska Inc. Request for Spacing Exception 2.) June 19, 1998 Notice of Public Hearing, Affidavit of Publication Conservation Order 431 ~ ~1RIGINAL 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 20 AAC 25.055(a)(3) to provide for the drilling of the Tarn 2N-337A oil well to an undefined pool adjacent to the western boundary of the Kuparuk River Unit. Conservation Order No. 431 ARCO Alaska, Inc. Tarn 2N-337A July 10, 1998 IT APPEARING THAT: ARCO Alaska, Inc. in correspondence dated June 16, 1998 and June 17, 1998, requested exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would allow drilling the Tarn 2N-337A oil well to a bottomhole location that is closer than 500 feet from a quarter section line. 2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on June 19, 1998 pursuant to 20 AAC 25.540. 3. No protests to the application were received. FINDINGS: 1. The Tarn 2N-337A oil well will be drilled as a directional hole from a surface location 11T from the north line, 996' from the east line (FEL), Section 3, T9N, R7E, Umiat Meridian (UM) to a bottomhole 1827 from the south line, 2645' (FEL), Section 4, T9N, R7E, UM 2. Offset owners BP Exploration (Alaska) Inc., Chevron U.S.A. Inc., Mobil Oil Corporation, UNOCAL Alaska Resources and the State of Alaska have been duly notified. 3. An exception to the well spacing provisions of 20 AAC 25.055 (a)(3) is necessary to the drilling of this well. CONCLUSION: Granting a spacing exception to allow drilling of the Tarn 2N-337A oil well will not result in waste nor j eopardize correlative rights. Conservation Order No.~!'S1 July 10, 1998 Page 2 NOW, THEREFORE, IT IS ORDERED: ARCO Alaska's applications for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the purpose of drilling the Tarn 2N-337A oil well is approved. DONE at Anchorage, Alaska and dated July 10, 1998. ~,, ~~I ~ :~ ~,, fs __ ~ ~. " '.~'. ~, ~ ~- . _` ~ ~ ~ ~" r~ ~ ~. ~~*~~ ~,~'~ ~~4_~~ ~~ David W. Johnston, Cha'rman Alaska it and Gas Cons rvation Commission obert N. Christenson, Commissioner Alaska Oil and Gas Conservation Commission r , Camille Oechsli, 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 23`d 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., 10"' day after the application for rehearing was filed). ~2 • r Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Tarn 2N-337A well ARCO Alaska, Inc. by letter dated June 17, 1998, has requested an exception to the provisions of 20 AAC 25.055(a)(3) for the drilling of a deviated oil well to an undefined pool adjacent to the western boundary of the Kuparuk River Unit. The exception would allow ARCO Alaska, Inc. to drill the Tarn 2N-337A oil well to a bottomhole location that is closer than 500 feet from a quarter section line. The well will be drilled as a directional hole from a surface location 117' from the north line, 996' from the east line (FEL), Section 3, T9N, R7E, Umiat Meridian (U1VI) to a bottomhole location 1827' from the south line, 2645' FEL, Section 4, T9N, R7E, UM. A person who may be harmed if the requested order is issued may file a written protest prior to 4:00 PM, July 6, 1998, 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 July 22, 1998, 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 July 6, 1998. 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 July 14, 1998. Robert N. Christenson, P.E. Commissioner Published June 19, 1998 ADN AO 02814056 ~~9400 STOF0330 A0~~02184056 AFFIDAVIT O F Pi.I B L ICATIO N $79.56 STATE OF ALASKA, ) ~ Fu®tic Nearu9g THIRD JUDICIAL DISTRICT. ) STATE OfALA9KA 011 ared 0~ Cete3ervat'ien Eva P~1. 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 farm) of said newspaper on June 19, 1998 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. slgn~ Subscribed and sworn t be re me this I ~~~ ~~ ~~day of~~i~:~~~~... .. ,? ~ ~~~1 r ~~~ ....... .:................. Notary Public in and f the St<ite of Ala Third Division. Anchorage, Alaska MY COMMISSION EXPIRES Re: Tarn 2N-337A well ARCO Ataska,.lnc. by Iefler dated June il, 7998. has r®- attested an exception M the provislOns of 2D AAC 13.055 (a)(3)' for the drlifing of o deviat8d oil well to an undBfinedpoal atliocent To the western boundary afYhe Kupatuk River Unit. The exception would allow ,. ARCO Alaska, fnc: ip drip tlw Tarn 1N-337A oil well to 'a bottomhole location That is closer than SW feet tram a quarter section line. The well will be drilled as o d7rectional hole from o surface location ti7` from the north Ilne, 99d' from fhe east tine {FEU, Set- lion 3, T9N, R7E, Umidt Ml-. _ rid{an (UM) to a boriomhote -.' locotioh 7817 from the south line, 2645' FEL, Sectioh 4, T9N, f27E, UM. A person who may be harm. ed if the requested order is issued may file a written pro tesf`prior ao a:oo PM July 6, )~.'wift+''rne Alaska Oil and and request matter, tf The IY filed and' d and rucial to iht. AM1 .on Juty 22, 1996 in ~mphte: wMh 20 AAC f'. tf a ' hear7ne is ' to be Ihtei•esfed parties -may ren this by caIllnSt the plssiori's office, f907~ p'3 offer Juty b; 7998. If rro st Is filed, the Commis• vrill consider issuance of Yler Without a hearing. Vou are a person ,wth a ility wtro mov need a ak modifycation 'rn order irnmenT Or t0 attend th6 : hearing, pledse~tontadt ~ Fleck at 179•1tr33 no than JuW l4, }qq8, serf N. Christenson, P.E. ~~ ARCO Alaska, Ina , • Post Office Box 100360 ' ` Anchorage, Alaska 99510-0360 June 16, 1998 Mr. David W. Johnston, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501 Re: Application for Permit to Drill KRU 2N-337A Surface Location: 117 ' FNL 996 ' FEL Sec 3 T9N R7E, UM Target Location: 1857 'FSL, 2426 ' FEL Sec. 4, T9N, R7E, UM Bottom Hole Location: 1827 'FSL, 2645 ' FEL Sec. 4, T9N, R7E, UM Dear Commissioner Johnston: Yesterday, ARCO submitted AOGCC Form 401 Application for Permit to Drill its KRU 2N-337A well. This well is a sidetrack from KRU 2N-337. The productive interval of the new well will be within 500' of a quarter section line and lies within the proposed Tarn Oil Pool. ARCO and partners own all of the adjacent properties. A request for spacing exception will be forthcoming. We request that the AOGCC proceed with processing and approval of Form 401 Application for Permit to Drill prior to the spacing exception being granted. This request is made to allow for continuous drilling rig operations. We intend to drill 2N 337A immediately. Estimated spud date for 2N 337A is June 16, 1998. The well would not be perforated or produced prior to the spacing exception being granted or approval of the pending Pool Rules. In making this request ARCO assumes the liability of any protest to the spacing exception that might be made. We appreciate your consideration of this request. If you have any questions or require additional information on this matter, please contact me at 263.4603. Sincerely, ~~~ ` O - ~. Paul Mazzolini /~j Drilling Team Leader /~l Exploration / Tarn Development Group ~~ , ~ ,. ARCO Alaska, Inc. Post Office Box 100360 Anchorage, Alaska 99510-0360 James R. Winegarner, CPL District Landman ATO 1496 Phone: (907) 265-6914 Fax: (907)263-4966 June 17, 1998 Mr. David W. Johnston, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 99501 Re: Request for Exception to 20 AAC 25.055 Tarn 2N-337A, Kuparuk River Unit, Alaska Dear Chairman Johnston: C~ /\ \/ Hand Delivered ARCO Alaska, Inc. ("ARCO") hereby applies for an exception to the provisions of 20 AAC 25.055 for the drilling of the Tarn 2N-337A (the "Well"). The Well will be drilled as a directional well having the following locations: Surface Location: 117 ' FNL 996 ' FEL Sec 3 T9N R7E, UM Target Location: 1857 'FSL, 2426 ' FEL Sec. 4, T9N, R7E, UM Bottom Hole Location: 1827 'FSL, 2645 ' FEL Sec. 4, T9N, R7E, UM The Well is located on ADL-375074 which is owned by ARCO (55.293767%), BP Exploration (Alaska) Inc. (39.282233%), UNOCAL Alaska Resources (4.950600%), Mobil Oil Corporation (.36480%), and Chevron U.S.A. Inc. (.10860%). The attached Exhibit 1 shows the location of the Well and all other adjoining governmental quarter sections and all wells drilled from Kuparuk River Unit 2N Pad on the property. The names and addresses of all owners and operators of the governmental quarter sections directly and diagonally offsetting the Well are set forth in the attached Exhibit 2. Included in the attached Exhibit 3 is the verification required by the referenced provisions, a copy of the notice sent to the other owners listed in Exhibit 2, and the date such notice was mailed. If you have any questions or require any additional information, please call me at 265-6914. i~'~~ e~ es R. Wine District Lan an Attachme s ~~~~ ARCO Alaska, Inc. p EXHIBIT "1" CpNFIDENTIAL Well Name: 2N~37A Surface Location: 117' FNL, 996' FEL, Sec. 3, T9N, R7E, UM Top of Formation: 1857' FSL, 2426' FEL, Sec. 4, T9N, R7E, UM Bottomhole Location: 1827' FSL, 2645' FEL, Sec. 4, T9N, R7E, UM Scale: 1" = 2,000' 6-17-98 980050544E41 AIAI, BP AT H, B I I J ARN #~ I ~ TARN ' 31-01 I -31-03 ( ' I ~ I I I ~ ' LK43 ALK4 ~ f 375108 I ADL 38 l.,l r c 54 1": Loca Ion oN - 7E I, BPX T 9 , 7 E AAI, X ADS-2N ~' ~ ( • ~ ( ~,, , ' ~ ~ To p of ' I t . hol ormatl on ' I oc tin I ~ 31 1 -~~~~` I ALK 1 I 293 ~ _ _ _ _ _ _ -- _ _ _ _ 1 A 37507 5 a ~~~ ' o00 ~~ # ! EXHIBIT 2 List of all owners and operators of governmental quarter sections directly and diagonally offsetting the Tarn 2N-337A welt. Operator: ARCO Alaska, Inc. P.O. Box 100360 Anchorage, AK 99501-0360 Non-Operators: BP Exploration (Alaska) Inc. P. O. Box 196612 Anchorage, AK 99519-6612 Attention: Mr. Bob Janes Chevron U.S.A. Inc. P. O. Box 1635 Houston, TX 77251-1635 Attention: Mr. Todd Kratz Mobil Oil Corporation 12450 Greenspoint Drive Houston, TX 77060 Attention: Mr. G. Mike Moffitt UNOCAL Alaska Resources P. O. Box 196247 Anchorage, AK 99519-6247 Attention: Mr. Kevin Tabler Royalty: State of Alaska Department of Natural Resources Division of Oil and Gas 3601 C Street, Suite 1380 Anchorage, AK 99503-5948 Attention: Mr. Ken Boyd • EXHIBIT 3 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 ARCO Tarn 2N-337A STATE OF ALASKA THIRD JUDICIAL DISTRICT ) VERIFICATION OF FACTS AND AFFIDAVIT OF JAMES R. WINEGARNER §§ James R. Winegarner, being first duly sworn, upon oath, deposes and states as follows: My name is James R. Winegarner. I am over 19 years old and have personal knowledge of the matters set forth herein. 2. I am a District Landman for the well operator, ARCO Alaska, Inc. ("ARCO"). 3. I am acquainted with the facts associated with the drilling of Tarn 2N-337A. 4. I have reviewed the application submitted for the exception to 20 AAC 25.055 To the best of my knowledge and belief all facts therein are true and accurate. 5. I have reviewed the plats attached as Exhibit "1" and it correctly portrays pertinent and required data. 6. Pursuant to 20 AAC 25.055 (b), 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 June 17, 1998, 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 location of ARCO's Tarn 2N-337A. 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 June 17, 1998. Subscribed and sworn to this 17th day of , STATE OF ALASKA THIRD JUDICIAL DISTRICT §~ This instrument was acknowledged before me this Winegarner. ._.~~.,______._ ~... t1. ~1.~ ~a.~ State of Alaska Notary lic, State of Alaska NaTARY PU$LIC My Commission Expires: ~l ~ g Kay H. La Bau MY Commission Expires 6-8-99 ~ ~~ ARCO Alaska, Inc. Post Office Box 100360 ' ` Anchorage, Alaska 99510-0360 James R. Winegarner, CPL " District Landman Land Department, ATO 1496 Phone (907) 265-6914 Fax: (907)263-4966 June 17, 1998 CERTIFIED MAIL Mr. Ken Boyd, Director BP Exploration (Alaska) Inc. Department of Natural Resources P. O. Box 196612 Division of Oil and Gas Anchorage, AK 99519-6612 3601 C Street, Suite 1210 Attention: Mr. Bob Janes Anchorage, AK 99503-5921 Mobil Oil Corporation Chevron USA Inc. 12450 Greenspoint Drive P.O. Box 1635 Houston, TX 77060 Houston, TX 77251-1635 Attention: Mr. G. Mike Moffitt Attention: Mr. Todd Kratz UNOCAL Alaska Resources P. O. Box 196247 Anchorage, AK 99519-6247 Attention: Mr. Kevin Tabler Re: Notice of Request for Exception to the Provisions of 20 AAC 25.055 Tarn 2N-337A Kuparuk River Unit, Alaska Pursuant to the provisions of 20 AAC 25.055 (b), ARCO hereby gives notice of a request sent to the Alaska Oil and Gas Conservation Commission ("AOGCC") for an exception to the well spacing requirements of 20 AAC 25.055 for the drilling of the Tarn 2N-337A, Kuparuk River Unit, Alaska. ARCO's request, if approved, will permit the drilling of the Tarn 2N-337A as a directional well having the following locations: Surface Location: 117 ' FNL 996 ' FEL Sec 3 T9N R7E, UM Target Location: 1857 'FSL, 2426 ' FEL Sec. 4, T9N, R7E, UM Bottom Hole Location: 1827 'FSL, 2645 ' FEL Sec. 4, T9N, R7E, UM The Well is located on ADL-375074 which is owned by ARCO (55.293767%), BP Exploration (Alaska) Inc. (39.282233%), UNOCAL Alaska Resources (4.950600%), Mobil Oil Corporation (.36480%), and Chevron U.S.A. Inc. (.10860%). Please d~esitate to cc~r-tact me with any questions you may have. /°~ Winegar PL Alaska, Inc. is a Subsidiary of AtlanticRichfieltlCompany