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•
•
Index Conservation Order 437
Duck Island Unit We112-30a/E1-02
l.) December 1, 1998 BP Alaska Exploration (Alaska) Inc. Request for Spacing
Exception
2.) December 5, 1998 Notice of Public Hearing, Affidavit of Publication
Conservation Order 437
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
3001 Porcupine Drive
Anchorage Alaska 99501-3192
Re'.
THE APPLICATION OF BP )
EXPLORATION (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 Duck Island )
Unit w¢11 2-30a/E1-02 deviated oil well to )
an undefined pool adjacent to the western )
boundary of the Duck Island Unit. )
Conservation Order No. 437
BP Exploration (Alaska), Inc.
Duck Island Unit 2-30a/E 1-02
December 23, 1998
IT APPEARING THAT:
BP Exploration (Alaska) Inc. (BPX) by letter dated December 1, 1998 requested an
exception to the well spacing provisions of 20 AAC 25.055(a)(3). The exception would
allow drilling the Duck Island Unit 2-30a/E1-02 deviated oil well to an undefined pool with
a bottomhole location that is closer than 500 feet to a quarter section line.
2. The Commission published notice of opportunity for public hearing in the Anchorage Daily
News on December 5, 1998 pursuant to 20 AAC 25.540.
3. No protests to the application were received.
FINDINGS:
The Duck Island Unit 2-30a/E1-02 oil well will be drilled as a deviated hole from a surface
location of 3327' north of the south line (NSL) and 2245' west of the east line (WEL) of
Section 36, T12N, R16E, Umiat Meridian (UM) to a bottomhole location 1124' NSL and
303' WEL, Section 28, T12N, R16E, UM.
2. Offset owners ARCO Alaska, Inc. has been duly notified.
3. An exception to the well spacing provisions of 20 AAC 25.055 (a)(3) is necessary, to allow
the drilling of this well.
CONCLUSION:
Granting a spacing exception to allow drilling of the Duck Island Unit 2-30a/E1-0'~"oil well will
not result in waste nor jeopardize correlative fights.
Conservation Order
December 23, 1998
Page 2
~7
NOW, THEREFORE, IT IS ORDERED:
BPX's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(3) for the
purpose of drilling the Duck Island Unit 2-30a/E1-02 oil well is approved.
DONE at Anchorage, Alaska and dated December 23, 1998.
Alaska Oil and Gas Conservation Commission
Camill~ 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 23rd day
following the date of the order, or next working day ifa 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 day after the application for rehearing was filed).
~~
Notice of Public Hearing
LJ
STATE OF ALASKA
Alaska Oil and Gas Conservation Commission
Re: Duck Island Unit well 2-30a/E1-OZ
BP Exploration (Alaska) Inc. (BPX) by letter dated December 1, 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 Duck
Island Unit.
The exception would allow BPX to drill the Duck Island 2-30a/E1-02 well to a
bottomhole location that is closer than 500 feet to a quarter section line. The well will be
drilled from a surface location of 3327' north of the south line (NSL) 2245' west of the
east line (WEL), Section 36, T12N, R16E, Umiat Meridian (UM) to a bottomhole
location 1124' NSL, 303' WEL, Section 28, T12N, R16E, UM.
A person who may be harmed if the requested order is issued may file a written
protest prior to 4:00 PM, December 21, 1998, with the Alaska Oil and Gas Conservation
Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501, and request a hearing on
this 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 January 5, 1998, in the 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 December 21, 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 793-1221 no
later than December 29, 1998.
Robert N. istenson, P.E.
Commissioner
Published December 5, 1998
ADN AO 02914014
#8830
STOF0330
AO-02914014
$81.90
•
AFFIDAVIT OF PUBLICATION
STATE OF ALAS[CA,
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 farm) of
said newspaper on
Dec. 5, 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.
Subscribed// and sworn before
me this .(.4~day of .,( ~~ Z~~ -; .
,~~g
.........~~.~.. ~r..~ ..... ~~
Notary Public in and fo ~-
the State of Alaska.
Third DNision.
Anchorage, Alaska
MY COMMISSION EXPIRES
Notice of Public Nearing
STATE OF ALASKA
Alaska Oil antl Gas
Conseraation Cammfssion
issued rngY file a wriften i
arotestcrior to 4:00 PM 1
DflCember~ 21 1998, with the~~
Alaska Oil and Gps. Conserv0.
lion Commission, .y3Q01 Porcu-
pine `Drive, Ancfiora5e, tilpska
99507 and re4uest o -heanng
Re: Duck 151and Unlt 1Nell ~ the matter. If th® protest Is
s
' 2-3DNE1-02 timely filed and raises a sub
~~1 staniial and material issu@.
BP Exploration (.Alaskdl' cru[iol to the Commission's
inc. (BPX) by tetfer. date determination, a henring on
December L .1998 has re- the matter will be Held at the
quested an exception to the above addrgss at 9:00 AM on
provisions of 20 AAC 25.055 - )anuarv 5, 1999, in contor-
fal(3) for the drilling: of a naNEe with 20 AAC 25.546. If a
deviated oil well to an unde- ,~ari~ is to behetd~J fntetestr
fin9d ~ Pool adiacenT to the ,d-parties may confirm this by
western boundary, of the Duck colliriBtheCOmrrissia~'s
Islond:Unit. office, (907) 219-1433 offer
1`he _exception :would allow December 21, iggg.. If no pro•
BPX to .drill The Duck: Isfnad test is filed, the Comrrussio
2.30alE1-02 well 'to a' bottom- will consider isyuance of th@
Hole locdtfori that is cla5er order without a heacin9C
Than 500 feel ib a quarter If you pre a person with a
section line. The weft will be disability who may need a
drilled from a surface location special modification im orb
of. 3327 north of the south line to comment or to attend ~ the
{NSL) 2245' west of the +~ public hearing, plate contact
dine CWEU, Sedion`kG% T12~, Diana Fleck at 793-1221 n8
R1QE; Umiat MeritlwYrF' (UM) datervf~pn ~ ~ ~si~~:
to P bottomhole loccdfon 1124 JsIRO N. lSie,Sa >>`~ ~ '
NSL 303' WEL, 5eciian 28 ~ ~f _ ,
T12N,R16E,UM. i AQ.p?9}4014 "f
A person who maV°be harm- Pub : bii4:
ed if the reauested~ order is ~ `
fib..... ~..........~~ODL)
v H ~l ~i~~
DRI / MCGRAW HILL
RANDALL NOTTINGHAM
24 HARTWELL
LEXINGTON .NIA 02173
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N H SMITH 7502 ALCOMITA
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GEORGE ROTHSCHILD JR RM 2537
P 0 BOX 4813
HOUSTON TX 77210
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ALASKA DIVISION
ATTN: CORRY WOOLINGTON
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PHILLIPS PETR CO
ALASKA LAND MGR
P O BOX 1967
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UNOCAL
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P O BOX 4531
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P 0 BOX 4778
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UNION TEXAS PETR ALASKA CORP
MANAGER-WORLDWIDE BUSINESS DEVELOP.
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P O BOX 2120
HOUSTON TX 77252-2120
~ ~
UNION TEXAS PETROLEUM EXXON CO USA
TECHNICAL SERVICES RESERVES COORD RM 1967
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HOUSTON TX 77252-2967 HOUSTON TX 77252-9987
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NANCY MOSES GREENPEACE
P O BOX 93330 PAMELA MILLER
ANCHORAGE AK 99509-3330 P O BOX 104432
ANCHORAGE AK 99510
ANCHORAGE TIMES BRISTOL ENVIR SERVICES
BERT TARRANT JIM HUNTER
P 0 BOX 100040 P O BOX 100320
ANCHORAGE AK 99510-0040 ANCHORAGE AK 99510-0320
ARCO ALASKA INC ARCO ALASKA INC
JENNY KEARNEY ATO 1255 JOANN GRUBER ATO 712
P O BOX 100360 P O BOX 100360
ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360
ARCO ALASKA 2NC ARCO ALASKA INC
LEGAL DEPT STEVE BENZLER ATO 1404
MARK P WORCESTER P O BOX 100360
P O BOX 100360 ANCHORAGE AK 99510-0360
ANCHORAGE AK 99510-0360
ARCO ALASKA INC ARCO ALASKA INC
LIBRARY MARK MAJOR ATO 1968
P O BOX 100360 P O BOX 100360
ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360
ARCO ALASKA INC ARCO ALASKA INC
LAND DEPT SAM DENNIS ATO 1388
JAMES WINEGARNER P O BOX 100360
P O BOX 10036 ANCHORAGE AK 99510-0360
ANCHORAGE AK 99510-0360
ARCO TRANSPORATION AK INC ARCO ALASKA INC
M D KYRIAS ATO 926 SHELIA ANDREWS ATO 1130
P 0 BOX 100360 PO BOX 100360
ANCHORAGE AK 99510-0360 ANCHORAGE AK 99510-0360
PETROLEUM INFO CORP ARCO ALASKA INC
KRISTEN NELSON KUP CENTRAL WELLS ST TSTNG
P 0 BOX 102278 WELL ENG TECH NSK 69
ANCHORAGE AK 99510-2278 P O BOX 196105
ANCHORAGE AK 99510-6105
ALYESKA PIPELINE ALYESKA PIPELINE SERV CO
ROSS C. OLIVER, TAPS PLANNER PERRY A MARKLEY
1835 S BRAGAW ST 1835 S BRAGAW - MS 575
ANCHORAGE AK 99512 ANCHORAGE AK 99512
ALYESKA PIPELINE SERV CO ALYESKA PIPELINE SERV CO
CHUCK O'DONNELL LEGAL DEPT
1835 S BRAGAW - MS 530B 1835 S BRAGAW
ANCHORAGE AK 99512 ANCHORAGE AK 99512-0099
US BUREAU OF LAND MGMT ANCHORAGE DAILY NEWS
OIL & GAS OPRNS (984) EDITORIAL PG EDTR
J A DYGAS MICHAEL CAREY
222 W 7TH AV #13 P O BOX 149001
ANCHORAGE AK 99513-7599 ANCHORAGE AK 99514
JWL ENGINEERING
JEFF LIPSCOMB
9921 MAIN TREE DR.
ANCHORAGE AK 99516-6510
GERALD GANOPOLE CONSULT GEOL
2536 ARLINGTON
ANCHORAGE AK 99517-1303
ASRC
CONRAD BAGNE
301 ARCTIC SLOPE AV STE 300
ANCHORAGE AK 99518
ARMAND SPIELMAN
651 HIGHLANDER CIRCLE
ANCHORAGE AK 99518
HALLIBURTON ENERGY SERV
MARK WEDMAN
6900 ARCTIC BLVD
ANCHORAGE AK 99518-2146
NORTHERN CONSULTING GROUP
ROBERT BRITCH, P.E.
2454 TELEQUANA DR.
ANCHORAGE AK 99517
DAVID CUSATO
600 W 76TH AV #508
ANCHORAGE AK 99518
SCHLUMBERGER
DARREN AKLESTAD
1111 E 80TH AV
ANCHORAGE AK 99518
A C SPIELMAN
651 HIGHLANDER CIR
ANCHORAGE AK 99518
OPSTAD & ASSOC
ERIK A OPSTAD
P O BOX 190754
ANCHORAGE AK
PROF GEOL
99519
JACK O HAKKILA
P O BOX 190083
ANCHORAGE AK 99519-0083
MARATHON OIL CO
OPERATIONS SUPT
P O BOX 196168
ANCHORAGE AK 99519-6168
UNOCAL
JANET BOUNDS
P O BOX 196247
ANCHORAGE AK 99519-6247
EXXON COMPANY USA
MARK P EVANS
PO BOX 196601
ANCHORAGE AK 99519-6601
BP EXPLORATION (ALASKA) INC
BOB WILKS MB 5-3
P O BOX 196612
ANCHORAGE AK 99519-6612
•
ENSTAR NATURAL GAS CO
RICHARD F BARNES PRES
P 0 BOX 190288
ANCHORAGE AK 99519-0288
MARATHON OIL CO
BRAD PENN
P O BOX 196168
ANCHORAGE AK 99519-6168
UNOCAL
KEVIN TABLER
P O BOX 196247
ANCHORAGE AK 99519-6247
BP EXPLORATION (ALASKA) INC
MR. DAVIS, ESQ
P 0 BOX 196612 MB 13-5
ANCHORAGE AK 99519-6612
BP EXPLORATION (ALASKA) INC
INFO RESOURCE CTR MB 3-2
P 0 BOX 196612
ANCHORAGE AK 99519-6612
BP EXPLORATION (ALASKA) INC BP EXPLORATION (ALASKA) INC
PETE ZSELECZKY LAND MGR SUE MILLER
P O BOX 196612 P O BOX 196612 M/S LR2-3
ANCHORAGE AK 99519-6612 ANCHORAGE AK 99519-6612
BP EXPLORATION (ALASKA), INC. AMERICA/CANADIAN STRATIGRPH CO
MARK BERLINGER MB 8-1 RON BROCKWAY
PO BOX 196612 P O BOX 242781
ANCHORAGE AK 99519-6612 ANCHORAGE AK 99524-2781
AMSI/VALLEE CO INC L G POST 0&G LAND MGMT CONSULT
WILLIAM O VALLEE PRES 10510 CONSTITUTION CIRCLE
PO BOX 243086 EAGLE RIVER AK 99577
ANCHORAGE AK 99524-3086
DIANA FLECK D A PLATT & ASSOC
18112 MEADOW CRK DR 9852 LITTLE DIOMEDE CIR
EAGLE RIVER AK 99577 EAGLE RIVER AK 99577
PINNACLE DEPT OF NATURAL RESOURCES
STEVE TYLER DGGS
20231 REVERE CIRCLE JOHN REEDER
EAGLE RIVER AK 99577 P O BOX 772805
EAGLE RIVER AK 99577-2805
• !
COOK INLET VIGIL RON DOLCHOK
JAMES RODERICK P O BOX 83
P O BOX 916 KENAI AK 99611
HOMER AK 99603
DOCUMENT SERVICE CO PHILLIPS PETR
JOHN PARKER J A LANDRUM KENAI REG MGR
P O BOX 1137 P 0 DRAWER 66
KENAI AK 99611 KENAI AK 99611
KENAI PENINSULA BOROUGH PENNY VADLA
ECONOMIC DEVEL DISTR P O BOX 467
STAN STEADMAN NINILCHIK AK 99639
P O BOX 3029
KENAI AK 99611-3029
BELOWICH COAL CONSULTING JAMES GIBBS
MICHAEL A BELOWICH P 0 BOX 1597
HC31 BOX 5157 SOLDOTNA AK 99669
WASILLA AK 99654
PACE
SHEILA DICKSON
P O BOX 2018
SOLDOTNA AK 99669
KENAI NAIL WILDLIFE REFUGE
REFUGE MGR
P O BOX 2139
SOLDOTNA AK 99669-2139
ALYESKA PIPELINE SERVICE CO VALDEZ PIONEER
VALDEZ CORP AFFAIRS P O BOX 367
SANDY MCCLINTOCK VALDEZ AK 99686
P O BOX 300 MS/701
VALDEZ AK 99686
VALDEZ VANGUARD UNIV OF ALASKA FAIRBANKS
EDITOR PETR DEVEL LAB
P O BOX 98 DR V A KAMATH
VALDEZ AK 99686-0098 427 DUCKERING
FAIRBANKS AK 99701
NICK STEPOVICH RICK WAGNER
543 2ND AVE P O BOX 60868
FAIRBANKS AK 99701 FAIRBANKS AK 99706
JACK HAKKILA C BURGLIN
P 0 BOX 61604 P O BOX 131
FAIRBANKS AK 99706-1604 FAIRBANKS AK 99707
FAIRBANKS DAILY NEWS-MINER FRED PRATT
KATE RIPLEY P O BOX 72981
P O BOX 70710 FAIRBANKS AK 99707-2981
FAIRBANKS AK 99707
DEPT OF NATURAL RESOURCES
DIV OF LAND
REG MGR NORTHERN REGION
3700 AIRPORT WAY
FAIRBANKS AK 99709-4699
ASRC
BILL THOMAS
P O BOX 129
BARROW AK 99723
UNIV OF ALASKA FBX
PETR DEVEL LAB
SHIRISH PATIL
437 DICKERING
FAIRBANKS AK 99775
SENATOR LOREN LEMAN
STATE CAPITOL RM 113
JUNEAU AK 99801-1182
SNEA(P)
DISTR FRANCE/EUROPE DU SUD/AMERIQUE
TOUR ELF
CEDEX 45
992078 PARIS LA DEFE FRANCE
K&K RECYCL INC
P O BOX 58055
FAIRBANKS AK 99711
RICHARD FINEBERG
P 0 BOX 416
ESTER AK 99725
UNIVERSITY OF ALASKA FBKS
PETR DEVEL LAB
DR AKANNI LAWAL
P 0 BOX 755880
FAIRBANKS AK 99775-5880
DEPT OF ENVIRON CONSERV SPAR
CHRIS PACE
410 WILLOUGHBY AV STE 105
JTJNEAU AK 99801-1795
~1
•
~ ~ BP EXPLORATION
1
December 1, 1998
David W. Johnston, Commissioner
Alaska Oil & Gas Conservation Commission
3001 Porcupine Drive
Anchorage, AK 99501-3192
•
BP Exploration (Alaska) Inc.
900 East Benson Boulevard
P.O. Box 196612
Anchorage, Alaska 99519-6612
(907) 561-5111
RE: Request for Exemption to Provisions of 20 AAC 25.055
Dear Commissioner Johnston,
Further to the letter from Shared Services Drilling of the 29th September applying
for an exemption to the provisions of 20 AAC 25.055 for Duck Island Unit well 2-
30a/EI-02 and your subsequent Conservation Order No 434, issued on 14th
October 1998, we now wish to apply for a modification to this exemption.
As discussed in our meeting with you on November 2nd 1998, one of the
objectives of the well is to determine the extent of the hydrocarbon column.
Given the current geological conditions encountered, to meet this object we may
need to modify the well plan such that it extends further to the west. Therefore,
BPXA would like to have the option to extend the well some 300ft into the portion
of ADL-34634 which comprises PBU Tract 33. In that event we anticipate the
approximate bottom hole location will be at:-
1124 NSL, 303 WEL, SEC 28, T12N R16E, UPM, AK
The surface location and Ivishak target location remain unchanged and are as
stated in the original application. It is only the bottom hole location that we may
need to modify.
~ ~~
~;..M ~ ~
~~~
•
As owner in all adjacent quarter sections and DIU Operator, BP Exploration
(Alaska) Inc. has no objection to the proposed modification. The only other
lease-holder and Operator of adjacent quarter sections is ARCO Alaska Inc. We
note (from ARCO's letter of October 5th to AOGCC Chairman Johnson), that
ARCO does not object to BP's drilling of the subject well into Tract 33. We attach
as Exhibit 1 a revised plat and as Exhibit 2 a copy of the verification as required
by the regulation.
Thank you for your assistance in this matter. Please direct any questions to
Steve Roberts at 564-5911 or in my absence to Graham Stewart at 564-5853.
Respectfully,
sk~
Steve Roberts
cc: BP Exploration (Alaska) Inc.
Graham Stewart
David Cocking
NW Sec 28
T12.N R16E U.M.
N Sec 28&27
N Sec 27&26
N Sec 26&25
460
2-30A 270°00 00 2-30A
TD MD:20,300 Original TD MD:19,909
X=245170.00 X=245630
00 2-30
Y=5986000.00 .
Y=5986000.00 TOP ESERVOIR MD:16,446
X=24 000.00
Y=5 86100.00
3371
~J~~j ~~(e1 303 57
268°18'01" 1758
r ~ ° ~ 28q 89g l
°
r Y ~, I ssQy„
~'
N Sec 32&33 _'~, "'`~-..._
Well 2-30A
MPI Surface Loc.
X=258961.20
Y=5982465.20
3560
SW Sec 33 S Sec 33&34
T12N R16E U.M.
MPI Well 2-30A
Wp9 11 /30/98
Downhole Location &
Section Line Ties
ASP Zone 3 (NAD 27)
Scale: 1 " = 2640'
Well 2-30A ._.. _„^, ._
Tie In Point M :6,500
X=257688.36
Y=5983785.47 ~~6'~j8~, 2245
~ ~'~~ - -
I ~I
I ~I
1
I
S Sec 34&35 S Sec 35&36
NE Sec 25
T12N 816E U.M.
NE Sec 36
SE Sec 36
T12N R16E U.M.
s
F-°-
•
•
EXHIBIT 2
VERIFICATION OF APPLICATION FOR SPACING EXCEPTION
DUCK ISLAND UNIT 2-30a/EI-02 WELL
Steve Roberts, Senior Geophysicist, Endicott, BP Exploration (Alaska) Inc., does
hereby verify the following:
1. I am acquainted with the application submitted for the drilling of Duck Island Unit
Well 2-30a/EI-02.
2. I have reviewed the application submitted for the modification to the exemption to 20
AAC 25.055, and all the facts therein are true.
3. I have reviewed the plat attached as Exhibit 1 and it correctly portrays pertinent and
required data.
DATED at Anchorage, Alaska this 30t" day of November, 1998.
____ ~- ~~
Stephen P. Roberts
STATE OF ALASKA )
ss.
THIRD JUDICIAL DISTRICT )
SUSCRIBED AND SWORN TO before me before this 30t" day of November, 1998.
My commission expires:
nlov ~. 2002
\\~,L ~~'~~ v
~~ Notary Public in and for the Mate Alaska
VARY m
P~LIC ,: ~;
..~••.
~~~~0~,F QF A1-PS,~P~`~
BP EXPLORATION
November 30th, 1998
BP Exploration Alaska, Inc.
Attn: Simon Potter
P.O. Bpx 196612
Anchorage, AK 99519-5193
Re: Letter of Non-Objection for 2-30a/EI-02 Well
Gentlemen:
BP Exploration (Alaska) Inc.
900 East Benson Boulevard
P.O. Box 196612
Anchorage, Alaska 99519-6612
(907) 561-5111
Exhibit 3
The AOGCC has requested that we obtain a letter of Non-Objection from BPXA for the
modification to the drilling of our 2-30a/EI-02 well as the wellbore may now reach TD in
the southeast portion section 28, which is within ADL 034634.
If the foregoing is acceptable, please so indicate by signing and .returning this letter
agreement to the undersigned.
Thank you for your prompt attention to this matter.
Sincerely,
Steve Roberts
Endicott Asset
Telephone: 564-5911
Fax: 564-5200
Accepted and agreed to this ~~ day of~_ t~. 1998.
BPX.~~sska Inc.
By: ~.;Uc~a: ~.
Title: ~ nn ~ ~ ~ ~
Date: 12 ~. G
DEC 03 '98 02~51PM BPX ENDICOTT DEVP
BP EXPLORATION
BP Exploration (Alaska), Inc.
FAX MESSAGE
•
ENS - Erldlcott Buslnosa Unlt
800 6, Benson Blvd.
P.O. ao:c 198812, M87-1
Anchorage, Alaska 99619.8818
nepafinent Fax: (907) 6845200
Contraf Fax: (907) 684441
P.1i4
From: S 76V ~ R,QA ~ (~,T S. Date: 3~` ~ ~ 9 ~ ~ -
Team: Eastern North Slope-Endicott Asset Group Tel: ~ 6~ - 5 9 / i
Fax No: 1-(907)-564-5200
Pages to Follow: ~,
URGENT U ORDINARY O CONFIDENTJAI. O
To: ~pob ~nda.~ Copy To:
Company: d~,O,Cr,CC ,
Depf: Creo~a~~
Fax No: Z~~ -- ~'~ ~~
ral: "Z~9 - 1~3~'
11E ; Ems- O"l, S~AcIN~ ~h~wn~lat~
Messaae• ~~~
~Q 1st `~ ~ g ~ 1 ~~
ans~...~o ~9. he.,,,~ o~~.tw1Lw~ ~~ ~ ~n 1
a~ ,
'~c•,J„D ~er ~r~r wacv ~, men r
~1 a
~~~ '~
~t,l~l,~~! ~
A1a~ca Od ~ Gay Cor-s. Conwni
EC 03 '98 02~52PM BPX ENDICOTT DEVP
~ ^ BP EXPLORATION
.~ November 301h, 1998
BP Exploration Alaska, Inc.
Attn: Simon Potter
P.O. Bpx 196612
Anchorage, AK 99519-b193
Re: fetter of Non-Objection for 2-30a/EI.02 Well
Gentlemen:
pP E><ploregOn (A~eBkel) lnF
90o East Benson Boulevard
PA. Box 196618
Anchorage, Alaska 99519.6818
(80~ 561.5111
Exhibit 3
P.2~4
The AOGCC has requested that we obtain a letter of Non-Objection from BPXA for the
modificatipn to the drilling of our 2-30a/EI.02 well as the welibore may now reach TD in
the southeast portion section 28, which is within ADL 034634.
If the foregoing is acceptable, please so indicate by signing and returning this let#er
agreement to the undersigned.
Thank you for your prompt attention to this matter.
Sincerely,
`~~ ~ ~
Steve Roberts
Endicott Asset
Telephone: 564-5911
Fax: 564-5200
Accept®d and agreed to this ~~ day of~.L eia 998.
BPX. ka Inc,
By: _r1.U ~~ .~
Title: ~- m ~' S
Date:: I~°i ~ .
~~~~
Ali'. ~ ~ ~99~
U~~Ga~f~s.Com~run
s,,i~° EC 03 ' 98
. ~
02~52PM BPX ENDICOTT DEVP
•
BP EXPLORI4TION
•
P.3i4
eP Exploration (Alaska) Inc.
9t>e Eaat 9anson Soul®vard
t?O, 9Dx 188612
Ar1ChOrag@, AIS9ke 995'19.6618
(907) 661.6111
(907) 564-5426 Dir®ct
(907) 5645200 FaX
lain W Wright
Mr. Henry McGee,
PBU EOA Operaeor,
ARCO Alaska, Inc.,
PO Sox 100360,
Attchorage, Alaska995i0,0360
Tuesday November 24'h 1998
PBUOA Tr 33 Re r entativ
Dear Mr. McGee,
Pursuant to Article 8.003 of the Prudhoe Bay Unit Operating Agreement, BP
Exploration (Alaska) hereby informs the EOA Operator that the Owner of P6U
Tract 33 will be represented by BP Exploration (Alaska) as Tract Representative.
As you know, BP is currently driliing an extended reach well (2-30a/EI.02.) from
Endicott MPi, targeting the Eider reservoir. In the event that progress on the well
is good, we may wish to extend it to a final bottom hole location which is within
Prudhoe Bay Unit Tract 33. We note (from ARCO's letter of October 51h to the
AOGCC), that ARCO does not object to this.
Should you have any questions regarding this matter, please Cal! me at (907)
664 5426.
Sincerely,
~~
lain W Wright
Copy to : Carol l.ee ADNR
Mike Kotowski ADNR
David Johnston AOGCC
John Bridges ARCO
DEC 03 '98 02~53PM BPX ENDICOTT DEVP `~ ~.~ ~H~ P.4i4
ARCO Al
k
~ S~Mdy ~
as
a,
Post Office Bcx 100360 ~i~V~.. ~rrRT~ ~~
Anchorage..41as~a 99510-0353 ~(~~
Telephone X07 .; 6 1215
~ p
~~ ~'
uu C/Igrt~q ~
October 5, 1998
Mr. David W. Johnston, Chairman
Slate of Alaska
Alaska Oil and Gas Conservation Commission
3001 Porcupine Drive
Anchorage, Alaska 99501
Re: Duck Island 2-58a/E1-02
Dear Mr. Johnston:
ARCO has reviewed the notice for an exception from the spacing rules set forth in 20 AAC .
25.055(a)(3). ARCO has no concern with the drilling of the Duck Island 2-58a/E1-02 Well with
regard to that well's proximity to either another well in the pool or the quarter section lines.
However, ARCO is concerned with issues relating to development of the pool targeted by the
well. As the Commission may know, the subject well is being drilled from a surface location in
the Duck Island Unit into a bottomhole location in the Prudhoe Bay Unit. Moreover, the well's
bottomhole location is adjacent to the Eider Field in the new Eider Participating Area, which
was just approved by the Department of Natural Resources on October 1, 1998.' From the
contents of the PA application and decision, it appears that the subject well is targeting the
Eider pool. ARCO also believes that the Eider pool may be in communication with the
adjacent lease to the north of the Eider PA. That lease, Tract 75, i5 oo-owned by ARCO and
BP, and has three well penetrations, BP has not engaged in any consultation with other
potentially affected parties to address the concerns about the complex geology or the
commercial and regulatory issues raised by these circumstances.
While, ARCO does not object to BP's drilling of the subject well, it has concerns about the
apparent drive to drill first without addressing issues pertaining to development, correlative
rights and existing unit operations. Thus, ARCO reserves its right to raise concerns about
whether BP's plans for production and development of the Eider Pool properly prevent waste,
protect correlative rights, and insure the greater ultimate recovery :.f oil and gas from the Eider
Pool.
Sincerely, _
;~
John A. Bridges
District Landman
cc: Ian Wright - Bp
Carol Lee - DNR
John Gallogly -Exxon
~~~6
Q~ ~ ~a86 ~It°s. C0111i'111
`The AOGCC notice says that the well is in an "undefined pool." However, in i31?'s June 25, 1998
application for the Sider, AA, it called the pool the "Eider Field."
4Id3E3•L9C0 83 •~
~a2.?c03
,~~
COlI'SERVATIQI~T COQ SS IGO~1~T
October 1 ~. 1998
Dave Cocking
Drilling Superintendent
BP Exploration (Alaska) Inc.
P 0 Box 196612
anchorage, AK 995 1 9-66 1 2
Re: Duck Island 2-30a/E1-02
BP Exploration (Alaska) Inc.
Permit No: 98-188
Sur Loc: 2.2TNSL. 22-I5'~~rEL. Scc. 36. T12N'. R16E, Uv1
Btmhole Loc. 1139'NSL. 5122'~YEL. Scc. 27. T12N. R16E. LYl
Dear IYIr. Cocking:
'ONY KNOWLES, GOVERNOR
3001 PORCUPINE DRIVE
ANCHORAGE, ALASKA 99501-3192
PHONE: (907) 279-1433
Fes' (907) 276-7542
Enclosed is the approved application for permit to drill the above referenced well.
The permit to drill does not exempt ~~ou from obtaining additional permits required b~~ law from
other governmental agencies. and does not authorize conducting drilling operations until all other
required permitting determinations arc made.
Blowout prevention equipment (HOPE) must be tested in accordance «~ith 2U AAC 25 035.
Sufficient notice (approximately 2~1 hours) must be given to allow a representative of the
Commission to witness a test of HOPE installed prior to drilling new hole. Notice may be eiven
nspector on the North Slope pager at 659-?607.
dlf/Enclosures
cc: Department of Fish cx: Gamc_ Habitat Section «'io encl.
Department of Environmental Conservation ~~io encl.
BY ORDER OF THE CONIh'IISSION
. ~ 1 - ~ c~
. ~ ~ ,~v • •
~,~ •
COMPANY NAME ST
----------------------------------- ----------------------------------- --
DRI / McGraw Hill Randall Nottingham MA
PIRA ENERGY GROUP Ny
OVERSEAS SHIPHOLDING GRP Ny
NY PUBLIC LIBRARY DIV E Ny
ALASKA OFC OF THE GOVERNOR JOHN KATZ STE 518 DC
AMERICAN PETR INST JEFF OBERMILLER DC
OIL DAILY CAMP WALSH DC
ARENT FOX KINTNER PLOTKIN KAHN WASHINGTON SQ BLDG DC
US MIN MGMT SERV VA
LIBRARY OF CONGRESS EXCH & GIFT DIV DC
U S DEPT OF ENERGY PHYLLIS MARTIN MS EI823 DC
TECHSYS CORP BRANDY KERNS MD
US GEOL SURV VA
SD DEPT OF ENV & NATRL RESOURCES SD
AMOCO CORP 2002A IL
ILLINOIS STATE GEOL SURV 469 NATURAL RESOURCES BLDG IL
LINDA HALL LIBRARY MO
ALFRED JAMES III KS
MURPHY E&P CO ROBERT F SAWYER LA
UNIV OF ARKANSAS AR
CROSS TIMBERS OPERATIONS SUSAN LILLY OK
DWIGHTS ENERGYDATA INC JERLENE A BRIGHT DIRECTOR OK
IOGCC OK
OIL & GAS JOURNAL LAURA BELL OK
CH2M HILL J DANIEL ARTHUR PE PROJ MGR OK
R E MCMILLEN CONSULT GEOL OK
BAPI RAJU TX
MARK S MALINOWSKY TX
US DEPT OF ENERGY MIR YOUSUFUDDIN TX
PURVIN & GERTZ TX
DEGOLYER & MACNAUGHTON ONE ENERGY SQ, STE 400 TX
MOBIL OIL CORP MORRIS CRIM TX
GAFFNEY, CLINE & ASSOC., INC. MARGARET ALLEN TX
GCA ENERGY ADV RICHARD N FLETCHER TX
MOBIL OIL JAMES YOREK TX
JERRY SCHMIDT TX
STANDARD AMERICAN OIL CO AL GRIFFITH TX
CROSS TIMBERS OIL COMPANY MARY JONES TX
PRITCHARD & ABBOTT BOYCE B BOLTON PE RPA TX
SHELL WESTERN E&P INC K M ETZEL TX
ENERGY GRAPHICS MARTY LINGNER TX
H J GRUY ATTN: ROBERT RASOR TX
PURVIN & GERTZ INC 2150 TEXAS COMMERCE TWR TX
RAY TYSON TX
CHEVRON PAUL WALKER TX
BONNER & MOORE TX
OIL & GAS JOURNAL BOB WILLIAMS TX
PETRAL CONSULTING CO DANIEL L LIPPE TX
MOBIL OIL N H SMITH TX
MARK ALEXANDER TX
MARATHON OIL CO GEORGE ROTHSCHILD JR RM 2537 TX
UNOCAL TX
EXXON EXPLOR CO TX
EXXON EXPLORATION CO. T E ALFORD TX
CHEVRON USA INC. ATTN: LORRY WOOLINGTON TX
PETR INFO DAVID PHILLIPS TX
PHILLIPS PETR CO ALASKA LAND MGR TX
PHILLIPS PETROLEUM COMPANY W ALLEN HUCKABAY TX
WORLD OIL MARK TEEL ENGR ED TX
EXXON CO USA TX
EXXON CO USA G T THERIOT RM 3052 TX
EXXON CO USA GARY M ROBERTS RM 3039 TX
PENNZOIL E&P WILL D MCCROCKLIN TX
CHEVRON CHEM CO TX
MARATHON Ms. Norma L. Calvert TX
PHILLIPS PETR CO ERICH R. RAMP TX
PHILLIPS PETR CO JOE VOELKER TX
PHILLIPS PETR CO JERRY MERONEK TX
TEXACO INC R Ewing Clemons TX
TESORO PETR CORP LOIS DOWNS TX
INTL OIL SCOUTS MASON MAP SERV INC TX
ROBERT G GRAVELY CO
DIANE SUCHOMEL CO
COMPANY NAME ST
~~--
12/23/1998
PAGE: 1
ZIP
02173
10016
10036
10163-2221
20001
20005
20005
20036-5339
20170-4817
20540
20585
20898
22092
57702
60680-0703
61820
64110-2498
67202-1811
70161
72701
73102-5605
73126
73152-3127
74101
74103-4425
74114-3902
75019
75126-5852
75201-6801
75202
75206-4083
75221
75248
75245
75265-0232
75701-9339
76048
76102-6298
76109-4948
77001-0574
77002
77002
77002-2979
77002-7639
77010
77019
77027
77042
77060-1991
77083
77210
77210-4531
77210-4778
77210-4778
77251
77251-1702
77251-1967
77251-1967
77252
77252-2180
77252-2180
77252-2180
77252-2967
77252-9987
77253-3128
77401
77401
77401
77402-0430
78217
78767
80122
80127
12/23/1998
PAGE: 2
ZIP
------------------
-
-
---------- ----- ---------------------------
GEORGE G NAUGHT JR -------- --
CO ----------
80201
AMOCO PROD CO C A WOOD RM 2194 CO 80201-0800
AMOCO PROD CO JILL MALLY CO 80202
C & R INDUSTRIES, INC. KURT SALTSGAVER CO 80202
JERRY HODGDEN GEOL CO 80401
NRG ASSOC RICHARD NEHRING CO 80901-1655
RUBICON PETROLEUM, LLC BRUCE I CLARDY CO 80906
EG&G IDAHO INC CHARLES P THOMAS ID 83415-2213
JOHN A LEVORSEN ID 83702
RUI ANALYTICAL JERRY BERGOSH UT 84158-0861
TAHOMA RESOURCES GARY PLAYER UT 84720
HUNGER OIL INFOR SERV INC CA 90045-0738
LA PUBLIC LIBRARY CA 90071
US OIL & REFINERY CO TOM TREICHEL CA 90245-4709
BABSON & SHEPPARD JOHN F BERGQUIST CA 90808-0279
ANTONIO MADRID CA 91109
ORO NEGRO, INC. CA 91324-2410
PACIFIC WEST OIL DATA ROBERT E COLEBERD CA 91345-2746
76 PRODUCTS COMPANY CHARLES BURRUSS RM 11-767 CA 92626
SANTA FE ENERGY RESOURCES INC CA 93309
WATTY STRICKLAND CA 93312-9286
TEXACO INC R W HILL CA 93388
US GEOL SURV KEN BIRD CA 94025
SHIELDS LIBRARY UNIV OF CALIF CA 95616
H L WANGENHEIM CA 95969-5969
ECONOMIC INSIGHT INC SAM VAN VACTOR OR 97207
US EPA REGION 10 LAURIE MANN OW-130 WA 98101
MARPLES BUSINESS NEWSLETTER MICHAEL J PARKS WA 98119-3960
PATTI SAUNDERS AK 99501
DUSTY RHODES AK 99501
DEPT OF REVENUE BEVERLY MARQUART AK 99501
DEPT OF REVENUE DENISE HAWES AK 99501
FAIRWEATHER E&P SERV INC JESSE MOHRBACHER AK 99501
GUESS & RUDD GEORGE LYLE AK 99501
STATE PIPELINE OFFICE KATE MUNSON AK 99501
TRUSTEES FOR ALASKA AK 99501
YUKON PACIFIC CORP JOHN HORN VICE CHM AK 99501-1930
PRESTON GATES ELLIS LLP AK 99501-1937
ALASKA DEPT OF LAW ROBERT E MINTZ ASST ATTY GEN AK 99501-1994
DEPT OF REVENUE FRANK PARR AK 99501-3540
BAKER OIL TOOLS AK 99503
HDR ALASKA INC MARK DALTON AK 99503
KOREAN CONSULATE OCK JOO KIM CONSUL AK 99503
N-I TUBULARS INC AK 99503
ANADARKO MARK HANLEY AK 99503
ALASKA OIL & GAS ASSOC JUDY BRADY AK 99503-2035
AK JOURNAL OF COMMERCE ROSE RAGSDALE AK 99503-5911
DEPT OF NATURAL RESOURCES BRUCE WEBB AK 99503-5948
DEPT OF NATURAL RESOURCES WILLIAM VAN DYKE AK 99503-5948
DEPT OF NATURAL RESOURCES JULIE HOULE AK 99503-5948
DEPT OF NATURAL RESOURCES JAMES B HAYNES NATURAL RESRCE MGR AK 99503-5948
DEPT OF NATURAL RESOURCES TIM RYHERD AK 99503-5948
DEPT OF NATURAL RESOURCES AK 99503-5948
DEPT OF NATURAL RESOURCES JIM STOUFFER AK 99503-5948
FINK ENVIRONMENTAL CONSULTING, INC. THOMAS FINK, PHD AK 99504-3305
ARLEN EHM GEOL CONSLTNT AK 99504-3342
RUSSELL DOUGLASS AK 99507
STU HIRSH AK 99507
US BUREAU OF LAND MNGMNT DICK FOLAND AK 99507
US BLM AK DIST OFC ART BONET AK 99507-2899
THOMAS R MARSHALL JR AK 99508
CASS ARIEY AK 99508
UNIVERSITY OF ALASKA ANCHORAGE TERESA HULL AK 99508
TRADING BAY ENERGY CORP PAUL CRAIG AK 99508
US MIN MGMT SERV RICHARD PRENTKI AK 99508-4302
US MIN MGMT SERV AK 99508-4302
US MIN MGMT SERV KIRK W SHERWOOD AK 99508-4302
REGIONAL SUPRVISOR, FIELD OPERATNS ALASKA OCS REGION AK 99508-4363
US MIN MGMT SERV AK 99508-4363
US MIN MGMT SERV JIM SCHERR AK 99508-4363
US MIN MGMT SERV FRANK MILLER AK 99508-4363
JOHN MILLER AK 99508-4555
USGS - ALASKA SECTION AK 99508-4667
12/23/1998
PAGE: 3
COMPANY
---------------------------- NAME ST ZIP
--
CIRI ----- --------------------------
NANCY MOSES --------- --
AK ----------
99509-3330
GAFO PAMELA MILLER AK 99510
k •
ANCHORAGE TIMES BERT TARRANT AK 99510-0040
BRISTOL ENVIR SERVICES JIM HUNTER AK 99510-0320
ARCO ALASKA INC JENNY KEARNEY ATO 1255 AK 99510-0360
ARCO ALASKA INC JOANN GRUBER ATO 712 AK 99510-0360
ARCO ALASKA INC MARK P WORCESTER AK 99510-0360
ARCO ALASKA INC STEVE BENZLER ATO 1404 AK 99510-0360
ARCO ALASKA INC AK 99510-0360
ARCO ALASKA INC MARK MAJOR ATO 1968 AK 99510-0360
ARCO ALASKA ZNC JAMES WINEGARNER AK 99510-0360
ARCO ALASKA INC SAM DENNIS ATO 1388 AK 99510-0360
ARCO TR.ANSPORATION AK INC M D KYRIAS ATO 926 AK 99510-0360
ARCO ALASKA INC SHELLA ANDREWS ATO 1130 AK 99510-0360
PETROLEUM INFO CORP KRISTEN NELSON AK 99510-2278
ARCO ALASKA INC WELL ENG TECH NSK 69 AK 99510-6105
ALYESKA PIPELINE ROSS C. OLIVER, TAPS PLANNER AK 99512
ALYESKA PIPELINE SERV CO PERRY A MARKLEY AK 99512
ALYESKA PIPELINE SERV CO CHUCK O'DONNELL AK 99512
ALYESKA PIPELINE SERV CO AK 99512-0099
US BUREAU OF LAND MGMT J A DYGAS AK 99513-7599
ANCHORAGE DAILY NEWS MICHAEL CAREY AK 99514
JWL ENGINEERING JEFF LIPSCOMB AK 99516-6510
NORTHERN CONSULTING GROUP ROBERT BRITCH, P.E. AK 99517
GERALD GANOPOLE CONSULT GEOL AK 99517-1303
DAVID CUSATO AK 99518
ASRC CONRAD BAGNE AK 99518
SCHLUMBERGER DARREN AKLESTAD AK 99518
ARMAND SPIELMAN AK 99518
A C SPIELMAN AK 99518
HALLIBURTON ENERGY SERV MARK WEDMAN AK 99518-2146
OPSTAD & ASSOC ERIK A OPSTAD PROF GEOL AK 99519
JACK O HAKKILA AK 99519-0083
ENSTAR NATURAL GAS CO RICHARD F BARNES PRES AK 99519-0288
MARATHON OIL CO AK 99519-6168
MARATHON OIL CO BRAD PENN AK 99519-6168
UNOCAL JANET BOUNDS AK 99519-6247
UNOCAL KEVIN TABLER AK 99519-6247
EXXON COMPANY USA MARK P EVANS AK 99519-6601
BP EXPLORATION (ALASKA) INC MR. DAVIS, ESQ AK 99519-6612
BP EXPLORATION (ALASKA) INC BOB WILKS MB 5-3 AK 99519-6612
BP EXPLORATION (ALASKA) INC AK 99519-6612
BP EXPLORATION (ALASKA) INC PETE ZSELECZKY LAND MGR AK 99519-6612
BP EXPLORATION (ALASKA) INC SUE MILLER AK 99519-6612
BP EXPLORATION (ALASKA), INC. MARK BERLINGER MB 8-1 AK 99519-6612
AMERICA/CANADIAN STRATIGRPH CO RON BROCKWAY AK 99524-2781
AMSI/VALLEE CO INC WILLIAM O VALLEE PRES AK 99524-3086
L G POST O&G LAND MGMT CONSULT AK 99577
DIANA FLECK AK 99577
D A PLATT & ASSOC p,K 99577
PINNACLE STEVE TYLER AK 99577
DEPT OF NATURAL RESOURCES JOHN REEDER AK 99577-2805
COOK INLET VIGIL JAMES RODERICK AK 99603
RON DOLCHOK AK 99611
DOCUMENT SERVICE CO JOHN PARKER AK 99611
PHILLIPS PETR J A LANDRUM KENAI REG MGR AK 99611
KENAI PENINSULA BOROUGH STAN STEADMAN AK 99611-3029
PENNY VADLA AK 99639
$ELOWICH COAL CONSULTING MICHAEL A BELOWICH AK 99654
JAMES GIBBS AK 99669
PACE SHEILA DICKSON AK 99669
KENAI NATL WILDLIFE REFUGE AK 99669-2139
ALYESKA PIPELINE SERVICE CO SANDY MCCLINTOCK AK 99686
VALDEZ PIONEER AK 99686
VALDEZ VANGUARD AK 99686-0098
UNIV OF ALASKA FAIRBANKS DR V A KAMATH AK 99701
NICK STEPOVICH AK 99701
RICK WAGNER AK 99706
JACK HAKKILA AK 99706-1604
C BURGLIN AK 99707
FAIRBANKS DAILY NEWS-MINER KATE RIPLEY AK 99707
FRED PRATT AK 99707-2981
DEPT OF NATURAL RESOURCES REG MGR NORTHERN REGION AK 99709-4699
12/23/1998
PAGE: 4
COMPANY
---------------
-- NAME ST ZIP
------
------------
K&K RECYCL INC ----------------------------- ------ --
AK ----------
99711
ASRC BILL THOMAS AK 99723
RICHARD FINEBERG AK 99725
UNIV OF ALASKA FBX SHIRISH PATIL AK 99775
UNIVERSITY OF ALASKA FBKS DR AKANNI LAWAL AK 99775-5880
°~ s
SENATOR LOREN LEMAN AK 99801-1182
DEPT OF ENVIRON CONSERV SPAR CHRIS PACE AK 99801-1795
SNEA(P) TOUR ELF FRANCE
BP EXPLORATION
December 10, 1998
Mr. Bob Crandall
Alaska Oil & Gas Conservation Commission
3001 Porcupine Drive
Anchorage, Alaska 99501
RE: Spacing Exception for Eider Well EI-02
Dear Bob:
BP Exploration (Alaska) Inc.
900 East Benson Boulevard
P.O. Box 196612
Anchorage, Alaska 99519-6612
(907) 561-5111
Please find enclosed the originals of a set of documents that were faxed to
you by Steve Roberts on December 3, 1998.
Steve will be back in the office from December 14, 1998. Please contact
him at (907) 564-5911 if you have any questions.
Yours Sincerely,
G~
Graham Stewart
Endicott Subsurface Team Leader
CGS/ynj
-
;;
Enclosures: 3 pages ,~..,4,,
ARCO Alaska, Inc.
Post Office Box 100360 ' `
Anchorage, Alaska 99510-0360 "
Telephone 907 276 1215
December 21, 1998
Mr. David W. Johnston, Chairman
State of Alaska
Alaska Oil and Gas Conservation Commission
3001 Porcupine Drive
Anchorage, AK 99501
Re: Duck Island Unit Well 2-30a/E1-02
Dear Chairman Johnston:
Thank you for the opportunity to comment on this well application. We understand this to be
a modification of the prior application by BP with regard to the Duck Island 2-58a/E1-02 Well.
Our comments with regard to that well, a copy of which is enclosed, thus apply equally to this
well.
We would like to take this opportunity to inform you that ARCO and BP have begun
discussions to address the issues raised by our letter. ARCO has proposed joint technical
work. This would provide a proper foundation for thoughtful and efficient plans to explore
(and, if successful, develop) the related prospects in the area, and to address the myriad
geologic, regulatory, and commercial issues. ARCO firmly believes that protection of
correlative rights, prevention of waste, greater ultimate recovery and the best interests of all
affected parties is best achieved through cooperative work among the owners. ARCO seeks
to avoid the kinds of problems that the State of Alaska and owners experienced at Niakuk.
BP has agreed to meet with ARCO again in January, but has not made any commitment to a
cooperative approach.
In the meantime, we reiterate that ARCO will not stand in the way of BP only drilling and
testing the subject well as a Tract Operation. ARCO reserves all other rights.
Sincer~,
,~
John A. Bridges
District Landman
JAB/jm
Attachment
cc: Kenneth Boyd ADNR
lain W. Wright BPX
,~~~~ M~
~~ ~3 ~~g~
.~~~~i~.~vOtle~iy)~"' p
t~
AR3B-6003-93 242-2603
FROM: R FAX ND.: 9072634966
~- i
ARCCa ALASKA, INC.
Exploration 8z Land Department
P.O. Box 100360
Anchorage, AK 99510-0360
12-21-98 01:20P P.01
Facsimile No.: (907) 263-4966
Date: December 21. 1998 _
To: David Johnston
Office: AOGCC
City, State:l, Anchorage. AK. _
Phone: _ (907) 793-1221,
From: John Bridges
Telephone: (9071265-1579
Fax: 907 276-7542 2 pages following cover
Comments: Attached is ARCO's Letter responding to the Notice of Public Hearing for
the Duck. Island Unit well 2-30a/E1-02.
Merry Christmas and Happy Holidays to you and your staff.
vhn
Confidentiality Notre
The docun'~e~ats accompanying this facsimile message contain confidential
communications which may be subject tv proteetxon under the attorz~ey~client
privilege ox the attorney work-product doctxi,ne. These documents are intended
solely for the use of the proper addressee anal should not be read or retained by
anyone other than the intended recipient. If you have received this telecopy in
error, please nvtxfy us immediately by collect telephone call at the telephone
numbez~ shown, above. Thank you.
FROM: R FRX NO.: 9072634966 12-21-98 01:20P P.02
ARCQ Alaska, In~
Post Oftic _ x ~ x0360
Anchorage. Aiask~, 93590-036D
Teiephono 907 27Fi 1215
December 21, 1998
Mr, David W. Johnston, Chairman
State of Alaska
Alaska Oil and Gas Conservation Commission
3001 Porcupine Drive
Anchorage, AK 99501
Re: Duck Island Unit Well 2-3oalE1-oa
Dear Chairman Johnston:
•
Thank you for the opportunity to comment on this well application. We understand this to be
a modification of the prior application by BP with regard to the Duck Island 2-58a/E1-OZ Weli.
Our comments with regard to that well, a copy of which is enclosed, thus apply equally to this
well.
We would like to take this opportunity to inform you that ARCO and BP have begun
discussions to address the issues raised by our letter. ARCQ has proposed joint technical
work. This would provide a proper foundation for thoughtful and efficient plans to explore
(and, iF successful, develop) the related prospects in the area, and to address the myriad
geologic, regulatory, and commercial issues- ARCQ firmly believes that protection of
correlative rights, prevention of waste, greater ultimate recovery and the best interests of all
affected parties is best achieved through cooperative work among the owners. ARCQ seeks
to avoid the kinds of problems that the State of Alaska and owners experienced at Niakuk.
BP has agreed to meet with ARCQ again in January, but has not made any commitment to a
cooperative approach.
In the meantime, we reiterate that ARCQ will not stand in the way of BP only drilling and
testing the subject well as a Tract Operation. ARCQ reserves all other rights-
Sincerely, ,~
,~ -
~ ~;. d ~,~,.r , -- .
~~
John A. Bridges
District Landman
JAB/jm
Att9Chment
cc: Kenneth Boyd ADNR
lain W. Wright BPX
FROM: R
FRX NO.: 9072634966
ARCO Ataska:Tnc,
October 5, 1998
Mr. David W. Johnston. Chairman
State of Alaska
Alaska Oil and Gas Conservation Commission
3001 Porcupine Drive
Anchorage, Alaska 99501
Re' Duck Island 2-58alE1-02
Dear Mr, Johnston;
i~
~i
Al~CO has reviewed the notice for an exception from the spacing rules set forth in 20 AAC
25.055(x)(3). ARCO has no concern with the drilling of the Duck Island 2-58alE1-02 Well with
regard to chat well's proximity to either another well in the pool or the quarter section lines.
However, ARCO iS Concerned with issues relating to development of the pool targeted by the
well. As the Commission may know, the subject well is being drilled from a surface location in
the Duck Island Unit into a bottomhole location in the Prudhoe Bay Unit. Moreover, the well's
bottomhoie location is adjacent to the Eider Pield in the new Eider Participating Area, which
was just approved by the Department of Natural Resources on October 1, 1998.' From the
contents of the PA application and decision, it appears that the subject well is targeting the
Eider pool. ARCO also believes that the Eider pool may be in communication with the
adjacent lease to the north of the Eider PA. That lease, Tract 75, is co-owned by ARCO and
BP, and has three well penetrations. BP has not engaged in any consultation with other
potentially affected parties to address the concerns about the complex geology or the
commercial and regulatory issues raised by these circumstances.
While, ARCO does not object to BP's drilling of the subject well, it has concerns about the
apparent drive to drill first without addressing issues pertaining to development, correlative
rights and existing unit operations. Thus, ARCO reserves its right to raise concem5 about
whether t3P's plans for production and development of the Eider Pool properly prevent waste,
protect correlative rights, and insure the greater ultimate recovery of ail and gas from the Eider
Pool. X
Sincerely, ~
~ `/"
John A, Bridges
District Landman
cc: Ian Wright - i'JP
Carol t_ee - DNR
John Gallogly -Exxon
The AOGCC notice savs that the well is in an --undefinEd pool." However, in BP's June ?~. 1998
application for the Eider, PA. it called the pool the "Eider Field."
12-21-98 01:20P P.03