Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CO 450 B
Irna~ Pro'ect ®rcler File Covo~a e 9 J 9 XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. © ~~~8 Order File Identifier Organizing (done) RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES BY: ^ Two-sided II I I II it II ~~ I DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: Date: Project Proofing BY: aria Date: Scanning Preparation BY: Maria _x30= Date: 'a/f Production Scanning lsl /s/ + =TOTAL PAGES~~ (Count does not include cover sheet) g /s/ Stage 1 Page Count from Scanned File: ~~ (Count does include cover sheet) Page Count Matches Number in Scanning Prep ration: ~ES _ BY: Maria Date: ~ p~. Stage 1 If NO in stage 1, page(s) discrepancies were found: YES BY: Maria Date: Scanning is complete at this point unless rescanning is required. .:wbP =II'.'IliIIIIID IIII Rescanned III I IIII IIII (IIII BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIIII III IIII I I ^ Rescan Needed III II III III IIII OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: 10/6/2005 Orders File Cover Page.doc • • INDEX CONSERVATION ORDER NO. 450B 1. June 16, 2003 E-mail regarding Spacing Exception 2. June 19, 2003 Notice of Public Hearing, affidavit, bulk mailing 3. July 16, 2003 Letter from Forest to Commission regarding CO 450 and 450A 4. June 23, 2003 Commissions response to Forest 6/16/03 letter 5. June 30, 2003 Letter from Forest w/agreement letters from DNR/BLM 6. July 3, 2003 Second Notice of Public Hearing, affidavit, bulk mailing Letter 7. July 7, 2003 fax to AGO all correspondence between operator and agency 8. July 14, 2003 Forest's final allocation of gas production from West Foreland # 1 well 9. July 25, 2003 Forest Application for spacing exception, Confidential exhibits located in Confidential room 10. August 13, 2003 Fax from Collins Brown re: agreement w/Forest Oil 11. August 14, 2003 Fax from John Robinson re/; agreement w/Forest WF #1 production allocation 12. -------------- Various affidavits and attachments submitted by operator 13. August 14, 2003 Sign in Sheet 14. August 22, 2003 Requested information from operator 15. August 14, 2003 Transcript 16. October 9, 2003 Order Allocating costs 17. November 4, 2008 E-mail chain regarding Escrow Distribution 18. December 22, 2008 E-mail chain regarding Escrow Distribution (Escrow distribution sheet held confidential) 19. March 9, 2009 Pacific Energy Resources, Ltd. Filing of Chapter 11 Restructuring Conservation Order 450B \ ( /7?.uhd '1 /2 <]/0-3 33 x. 37.= ~~.;<. J STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF FOREST OIL CORPORATION for an order granting a permanent exception to the spacing requirements of 20 AAC 25.055 to allow for production from the West Foreland #1 gas well, West Foreland Field, Cook Inlet, Alaska; and allocating production from the West Foreland #1 well to Federal lease A-035017 and State of Alaska lease ADL- 359112 IT APPEARING THAT: ) Conservation Order No. 450B ) ) ) ) West Foreland Field ) West Foreland Undefined Pool ) ) ) ) ) ) September 29, 2003 By letter incorrectly dated July 16, 2003, and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 16, 2003, and supplemented by a letter dated and received June 30, 2003, Forest Oil Corporation ("Forest") in its capacity as Operator of the West Foreland Field requested that the Commission make permanent the temporary well spacing exception for the currently producing intervals in the West Foreland #1 well, and approve an allocation of gas production between Federal Lease A-035017 and State of Alaska Lease ADL-359112. 2. Notice of a public hearing was published in the Anchorage Daily News on June 19, 2003, and an amended notice was published in the Anchorage Daily News on July 3, 2003. 1. By letter dated July 25, 2003, and received by the Commission on July 28, 2003, Forest provided supplemental information to the Commission in support of its application. On August 13, 2003, the Commission received written notices of support of Forest's recommended production allocation from overriding royalty owners John M. Robinson and Collins W. Brown. 3. 4. ( Conservation Order 450B September 29, 2003 Page 2 5. The Commission held a public hearing August 14, 2003 at 9:00 AM at the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. Representatives of Forest testified at the hearing. The hearing record was held open until August 22 at 5:00 PM to allow Forest's submittal of suggested language to be included in the Commission's order regarding disbursement of escrow funds. 6. On August 22,2003, Forest submitted such suggested language to the Commission. FINDINGS: 1. The record for this order includes the records for Conservation Orders Nos. 450 and 450-A. 2. West Foreland #1 has a surface location 879.5' from the south line and 670.5' from the east line of Section 21 in T8N and R14W of the Seward Meridian. It was originally drilled during 1961 and 1962 to search for oil. 3. West Foreland #1 is a vertical well located approximately 570' from the Cook Inlet shoreline, which forms the boundary between Federal Lease A-035017 and State Lease ADL-359112. 4. The landowners for Federal Lease A-035017 are Cook Inlet Region, Inc. ("CIRI"), and the Bureau of Land Management ("BLM"). The landowner for State Lease ADL-359112 is the Department of Natural Resources ("DNR"). BLM administers Lease A-035017 on behalf of CIRI. 5. In 1997, Forcenergy Inc. ("Forcenergy") acquired 3D seismic data across the West Foreland Field area. Well data and 3D seismic data were used to map the West Foreland structure, including faulting that traps the gas accumulation being produced by West Foreland #1. Forcenergy is the predecessor of Forest. In this order, references to "Forest" include Forcenergy as applicable. 6. In Conservation Order No. 450 ("CO 450"), issued on July 24, 2000, as amended by Conservation Order No. 450-A ("CO 450-A"), issued on April 23, 2001, the Commission: a. granted Forest a temporary spacing exception to allow for gas production from the West Foreland #1 well from any interval not deeper than 9527' MD; b. required Forest to establish an interest-bearing escrow account and deposit funds equivalent to the value of 17-1/2 % of the total gas production from the West Foreland # 1 in that account; ( ~ Page 3 Conservation Order 450B September 29, 2003 d. required Forest to conduct appropriate production testing and provide the Commission with geological and geophysical data and the results of the production testing to support a reasonable inference as to the proportion of producible gas reserves down to 9,527 feet MD in West Foreland #1 that underlies each of the two affected leases; and provided that escrowed funds would be disbursed in accordance with a compensatory royalty agreement or other allocation agreement (after all royalty owners had either executed such agreement or had an opportunity to be heard) or, in the absence of an agreement, escrowed funds would be disbursed as determined by the Commission. c. 7. On or about April 20, 2001, Forest established an escrow account as required by CO 450 and 450-A. 8. On April 25, 2001, Forest initiated gas production from West Foreland #1 from a Tyonek reservoir between 9336' to 9352' MD. 9. During January 2003, West Foreland #1 was shut-in for well maintenance work. While the well was shut-in, new down-hole pressure buildup data were gathered. 10. In July of 2003, BLM, DNR, and Forest agreed, pursuant to a previously executed compensatory royalty agreement, to an allocation of 580/0 to Federal lease A- 035017 and 420/0 to State lease ADL-359112 of all gas reserves producible from any interval not deeper than 9527' from the West Foreland #1 well. 11. Forest presented sufficient evidence that it made diligent efforts to locate all owners of royalty interests on both the federal and state leases, and that it gave written notice to all such owners for whom an address was obtained of the owner's right to be heard on Forest's request for Commission approval of the agreed allocation of production between the two leases. No owner opposed that allocation. 12. Forest provided evidence in support of the agreed allocation showing that material balance (P/Z analysis) incorporating pressure; gas properties and cumulative gas production data through January 2003 resulted in greater calculated original gas in place ("OGIP") within the West Foreland structure. Volumetric estimates based on net pay isopach maps for the West Foreland structure were revised to accommodate the increase in OGIP. 13. An allocation of 580/0 to Federal lease A-035017 and 420/0 to State lease ADL- 359112 represents a reasonable estimate of the respective proportions of the gas reserves producible from accumulations not deeper than 9527' from the West Foreland #1 well that underlie the two leases. ( Conservation Order 450B September 29, 2003 :t Page 4 CONCLUSIONS: 1. A permanent exception to 20 AAC 25.055(a)(2) is necessary to allow continued production of gas from the Tyonek reservoir in West Foreland # 1. This spacing exception must apply to gas production from any interval not deeper than 9527' MD in the West Foreland # 1 well. 2. Allocation of production as approved by this order will protect the correlative rights of affected persons, will be fair to affected owners of royalty interests, and will accomplish the purposes of AS 31.05.100. 3. The conditions established by CO 450 and 450-A for the disbursement of escrow funds and for the termination of Forest's obligations to maintain and pay into an escrow account have been satisfied. NOW, THEREFORE, IT IS ORDERED: 1. A permanent spacing exception is granted to allow production of gas from the West Foreland #1 from any interval not deeper than 9527' MD. 2. The Commission approves the allocation of 58% to Federal Lease A-035017 and 42% to State of Alaska Lease ADL-359112 of any gas production from any interval not deeper than 9527' MD in West Foreland # 1. 3. The Commission authorizes the disbursement to the persons entitled thereto, consistent with the allocation approved by the Commission, of the funds that have been placed in First National Bank of Anchorage Account No. 80-8250-00, pursuant to the First National Bank of Anchorage, West Forelands #1 Invested Escrow Agreement. In the case of escrow funds otherwise due to a royalty interest owner who has not been located despite Forest's diligent efforts to do so, the funds may be disbursed to Forest. Such disbursement does not affect Forest's liability to pay royalties to such royalty interest owner. Conservation Order 450B September 29, 2003 f Page 5 4. Subject to the disbursement of funds as authorized by this order, Forest's obligations under CO 450 and CO 450-A to maintain and pay into an escrow account are terminated. DONE at Anchorage, Alaska and dated September 29,2003. . , Chair Alaska Oil and Gas Conserva . n Commission fR~h'~=~ 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 ti Ie 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 pa11 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 tì'om 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 Cou11 runs from the date on which the request is deemed denied (i.e., 10111 day after the application for rehearing was tiled). CO 450B i( ( Subject: CO 4508 Date: Tue, 30 Sep 2003 12:51 :05 -0800 From: jody - colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission BCC: Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <j darlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon. donnelly" <shannon.donnell y@conocophillips.com> , "mark. p. worcester" <mark. p. worcester@conocophillips.com>, "j erry.c .dethlefs" <j erry. c. dethlefs@conocophillips.com>, arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, burgin - d <burgin - d@niediak.com>, "charles.o 'donnell" <charles.o'donnel1@veco.com>, "Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <Mikel. Schultz@BP .com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <PlattJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP .com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins - mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "b arb ara. f. fullmer" <barb ara. f. fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>, doug_schultze <doug- schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobil.com>, yesno 1 <yesno l@gci.net>, "john. w .hanes" <john. w .hanes@exxonmobil.com>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>, "fred. steece" <fred. steece@state.sd. us>, rcrotty <rcrotty@ch2m.com>, j ejones <j ejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>, "j ames.m.ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, "Emeka. C .Ezeaku" <Emeka. C.Ezeaku@spdc.shell.com>, mark - hanley <mark - hanley@anadarko.com>, lof2 9/30/2003 12:52 PM CO 4508 ( ,( loren _leman <loren _leman@gov.state.ak.us>, Harry R Bader <harry_bader@dnr.state.ak.us>, julie_houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Srtephanie _Ross <Srtephanie - Ross@thomson.com>, jimwhite <jimwhite@satx.rr.com> The attached Conservation Order 450B was signed by the commissioners on 9/29/03. Jody Colombie 1"'-'--'.'.''''-'''..'''--''.-''''-''''.'-''.-''''''''''''''-''''''"'''''----''''-'''''''''''''''-''--''''-''''''''''"-"",-,,,''''''-'''''-''''''..-......................--..........---......-.......--.-"""-''''''''''..........---.---........---...--...--..........--...-..- .0 Name: CO 450B.pdf ~,~1,:,';,','"CO 450BoPdf..., , " ,T,Y"P", e, ,: A,' " C""r",o",b" ,a,t",,(,a, "P", P"""l""i",C" a", t,i"O"",nI"""P, ,d"",f)""" Encoding: base64 20f2 9/30/2003 12:52 PM Conservation Order 4508, West Foreland Field ( Subject: Conservation Order 450B, West Foreland Field Date: Tue, 30 Sep 2003 12:51 :44 -0800 From: jody - colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission To: Cynthia B Mciver <bren_mciver@admin.state.ak.us> Please post on website. Jody Name: 1 CO 450B.doc 11 CO 450B.doc Type: WINWORD File (applicationlmsword) Encoding: base64 1 of 1 9/30/2003 12:52 PM SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 David McCaleb I HS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 323 Knipp Forest Street Houston, TX 77079-1175 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Penny Vadla Box 467 Ninilchik, AK 99639 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 ( Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 James Gibbs PO Box 1597 Soldotna, AK 99669 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks. AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 f Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 (' STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West ih Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF FOREST) OIL CORPORATION for an order) granting a permanent exception to ) the spacing requirements of 20 ) AAC 25.055 to allow for production) from the West Foreland #1 gas ) well, West Foreland Field, Cook ) Inlet, Alaska; and allocating ) production from the West Foreland) #1 well to Federal lease A-035017 ) and State of Alaska lease ADL- ) 359112 ) West Foreland Field West Foreland Undefined Pool October 8, 2003 ORDER ALLOCATING COSTS OF HEARING On February 8, 2002, the Commission issued Conservation Order 450B, which among other things granted a permanent spacing exception to allow production of gas from the West Foreland #1 well. In addition to its usual expenses of publishing a notice of public hearing and of having the hearing recorded and transcribed, the Commission paid for an amended notice of public hearing when the hearing had to be postponed from its originally scheduled date. This postponement was necessary because of Forest Oil Corporation's delay in mailing the required notification to royalty owners. While Forest pays regulatory cost charges under AS 31.05.093, and while its application was meritorious, the Commission finds that the additional expense of a second public notice that was imposed on the Commission by Forest's delay in this matter justifies allocating that particular expense to Forest. The amended notice of public hearing cost the Commission $154.46. Accordingly, this cost will be allocated to Forest. AS 31.05.085(b) provides that the Commission shall provide an opportunity to any person objecting to an allocation to be heard before the allocation becomes final. Forest may object to this allocation by filing an application for rehearing under AS 31.05.080(a). ( NOW THEREFORE IT IS ORDERED: 1. Costs of hearing in the amount of$154.46 are allocated to Forest under AS 31.05.085(a). 2. This order will not become final until (a) the day after the time has expired for filing an application for rehearing under AS 31.05.080(a), if no application for rehearing is filed; or (b) the Commission finally disposes of any application for rehearing of this order that may be filed. 3. Forest shall pay to the Commission the costs allocated by this order no later than 30 days after this order becomes final. DONE at Anchorage, Alaska, this 9th of October 2003. s~à::~L~ Alaska Oil and Gas Conservation Commission ., ~~driC~~ 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 tile 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 fì'om 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 Couli runs from the date on which the request is deemed denied (i.e., lOt ¡ day after the application for rehearing was tiled). West Foreland Field October 8, 2003 Page 2 of2 8 ( FOREST 0 I L ( CORPORATION ./ i( ,,-)( r'7ln'el . r'j~(fle ?fi( rC!)I(/n/'(a/(', rC/lrtj.{/ /),0,;(// (,fJt /-:-)/,,\-)(j'( ( . (.W?) /,.'-,\6'(1 (~-/01) December 1,2003 .~¡:) L) - CO RECEIVED DEe - 9 Alttt, on & G 2fJJ:J as Con AnI' . $. COIf1trt¡.. . ~lora1Je "OtfqllDn Sarah Palin, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 ÅLnchorage,AJe 99501 Re: West Foreland #1 well; West Foreland Field; Permanent Spacing Exception Order Allocating Costs of Hearing Dear Commissioner Palin: Please find enclosed Forest Oil Corporation ("Forest") check number 1443 in the amount of $154.46 as payment for the regulatory cost charges allocated to Forest by the Alaska Oil & Gas Conservation Commission ("AOGCC") pursuant to its Order Allocating Costs of Hearing (the "Order") regarding the referenced matter. While Forest does not object to the allocation of costs, and hence did not file an application for rehearing, there are nonetheless several inaccuracies contained in the Order that Forest believes must be corrected or clarified for the record. These are described as follows: 1. The Order indicates that Conservation Order 450B was issued on February 8, 2002. It was not. Conservation Order 450B was issued on September 29,2003. Further, there is no communication regarding the referenced matter dated February 8, 2002. 2. The reason for the second public notice was because the parties to the Compensatory Royalty Agreement ("CRA") had revised the recommended Final Allocation from that described in the first public notice and not "because of Forest Oil Corporation's delay in mailing the required notification to royalty owners". 3. The AOGCC staff recommended, and Forest agreed, that a second public notice be published with the revised Final Allocation percentages and a new AOGCC hearing date be scheduled. Forest had submitted its initial request on June 16,2003 for a hearing, which was scheduled before the AOGCC on July 25,2003. Forest mailed the required notification to royalty owners the day after it received written approval from the Parties to the CRA to revise the Final Allocation, which was still nonetheless more than a week prior to the original July 25, 2003 hearing date. If you have any questions regarding this submittal, please feel free to call me at 868-2112. Sincerely, FOREST OIL CORPORATION ~~~~ Land Manager - Alaska Business Unit Enclosure: Forest Oil Corporation check #1443 Page 1 of 1 \~Cj4iNJl~¡,e'[:c'.i ty: f~ ej) CiI" 200-), ft~g;;~,,", .~. M~ t~ (,;ÿ) ~,J FOREST OIL CORPORATION 310 K ST., STE. 700 PH. 907-258-8600 ANCHORAGE, AK 99501 II ./1 ~ I ~I 0 PAY TO THE ORDER OF. ¿). -~ ~ ~~~~ i 1443 tJ! I~, ii' I 89-6/1252 i í ¡ I 1-, . i . .- ¡I $/-6 ~ ~ç li~", I DOLLARS {ñ ~:::" ¡~¡ DATE /~/6'~ÞC?Cf? 7~( t:-:A..,_Æ"..tJ FORÆdk~ ~1r.C';,;;d¿J;~;;;~C:I.Jf1~'âe/~1/ .¿;:¿' .. . ~ .. .. ~ I 00 ~...... ~II' J: ~/2 5 2000 bOt: 02. ¡ .... 3 Dill - - --------'------------_u---- ¡ I X19 • From: Saltmarsh, Arthur C (DOA) Sent: Monday, March 09, 2009 11:08 AM Subject: FW: Pacific Energy files chapter-11, it's official!!! FYI. • PACIFIC ENERGY RESOURCES LTD. ~ ~ ~~~ 111 West Ocean Blvd., Suite 1240 Long Beach, California 90802 Telephone: (562) 628-1526; Fax: (562) 628-1536 Files for Chapter 11 to Facilitate a Restructuring LONG BEACH, CALIFORNIA, Monday, March 9, 2009 - -Pacific Energy Resources Ltd. (the "Company")(TSX:PFE) announces today that it and its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The filing was precipitated by the dramatic decrease in the market price of oil over the past-five months. Combined with the Company's pre-existing level of debt related to past acquisitions and poor capital market conditions, the Company's liquidity and cash flow is insufficient to operate its business and invest in its oil producing assets to increase production. Faced with these constraints, the Company and its subsidiaries filed petitions for reorganization under chapter 11 to facilitate access to an immediate source of liquidity as it works to restructure its debt. In connection with the filing, the Company is seeking customary authority from the Bankruptcy Court that will enable it to continue operating its business in the ordinary course of business. The requested approvals include requests for the authority to make wage and salary payments and continue various benefits for employees. In addition, the Company has negotiated a commitment for $40 million in debtor-in-possession ("DIP") financing. The DIP facility wraps and replaces two of the Company's three asset-based credit facilities and is being provided by the lenders of the two cred+t facilities that are being replaced. Upon Court approval, the DIP financing combined with the Company's operating revenue will provide sufficient liquidity to fund working capital, meet ongoing obligations and ensure that normal operations continue without interruption during its restructuring. About Pacific Energy Resources Pacific Energy Resources Ltd. is an oil and gas exploration and production company based in Long Beach, California, U.S.A. Additional information relating to the Company may be found on SEDAR at www.sedar.com. The Company's web site is www.PacEnergy.com. ON BEHALF OF THE BOARD OF DIRECTORS PACIFIC ENERGY RESOURCES LTD. Pacific Energy Resources Ltd. 310 K. Street, Suite 700 Anchorage, AK 9907 Office: 907-2~8-8600 Fax: 907-258-8601 I~a~id I3afl~ Alaska Operations ~blanager Main: 907-868-2133 Cell: 907-317-8239 dmhall(a)pacener~y.com www.~acenerw.com ~~~ • • Colombie, Jody J (DOA) From: Elaine Knipe [eknipe@pacenergy.com] Sent: Tuesday, January 06, 2009 1:58 PM To: Melissa_Ainsworth@ak.blm.gov; Jim Arlington; Greg_Noble@blm.gov; George.Hutchison@mms.gov; Thomas_Zelenka@blm.gov Cc: Bill Lyng; Doug Jeric; Stouffer, James A (DNR); Joe Kilchrist; Jennifer Kuritz; Colombie, Jody J (DOA); Norman, John K (DOA); KCunningham@ciri.com; 'Mark Oliver'; 'Bob Tannahill'; Carol_Taylor@ak. blm. gov Subject: RE: FW: West Foreland Distribution Attachments: federal_wf2u_blm.xls; federal_wf2u_escrow_db.xls federa I_wf2u_bl m.xfederal_wf2u_escro Is (286 KB) w_db.xls (74... Melissa, Attached are the requested reports. the distribution was done - December 23, me. Elaine Knipe Controller - Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 I thought I had already emailed them out when 2008. If you have any questions, please contact -----Original Message----- From: Melissa_Ainsworth@ak.blm.gov [mailto:Melissa Ainsworth@ak.blm.gov] Sent: Tuesday, January 06, 2009 2:05 PM To: Jim Arlington; Greg Noble@blm.gov; George.Hutchison@mms.gov; Thomas Zelenka@blm.gov Cc: Bill Lyng; Doug Jeric; Elaine Knipe; Stouffer, James A (DNR); Joe Kilchrist; Jennifer Kuritz; Colombie, Jody J (DOA); john.norman@alaska.gov; KCunningham@ciri.com; 'Mark Oliver'; 'Bob Tannahill'; Carol_Taylor@ak.blm.gov Subject: Re: FW: West Foreland Distribution Jim: Thank you for the disbursement notification. Greg Noble still has not received the spread sheets required in our WF#2 approval Decision dated November 30, 2007, in our letter dated May 23, 2008 and finally in the e-mails between you and I on 12/4/08. Please provide the required spread sheets ASAP so that the BLM can complete our review of the disbursements. MMS will also be provided with the spread sheets for its review. If discrepancies are found you will be notified after review by each agency. If you have any questions please let me know. Thank you, /s/ Melissa Ainsworth Mineral Law Specialist NIAFMSS Local User Support Mineral Law and Solid Mineral Section Bureau of Land Management- Alaska 907-267-1212, 907-271-5718 phone 907-267-1304 fax 1 melissa ainsworth@ak.blm.go~ Jim Arlington <JDArlington@pace nergy.com> 12/22/2008 02:22 PM Ms. Colombie, C~ "Colombie, Jody J (DOA)" <jody.colombie@alaska.gov> To cc "john.norman@alaska.gov" <john.norman@alaska.gov>, "Ainsworth, Melissa" <Melissa Ainsworth@ak.blm.gov>, "KCunningham@ciri.com" <KCunningham@ciri.com>, "Stouffer, James A (DNR)" <jim.stouffer@alaska.gov>, Elaine Knipe <eknipe@pacenergy.com>, Jennifer Kuritz <jkuritz@pacenergy.com>, Bill Lyng <blyng@pacenergy.com>, Doug Jeric <djeric@pacenergy.com>, "'Mark Oliver "' <mark@rdiroyalty.com>, Joe Kilchrist <jkilchrist@pacenergy.com>, "'Bob Tannahill "' <rtannahill@FNBAlaska.com> Subject FW: West Foreland Distribution As you can see from the attached, Pacific Energy Resources, Ltd has directed the escrow agent, 1st National Bank Alaska, to distribute the WF #2 escrow funds today. However, since this letter was sent the escrow agent has discovered a discrepancy in the calculation of the amounts to be wired to each recipient listed and has asked for reconciliation with the spreadsheet sent to him over this past weekend that calculated the amounts for each party before he disburses the funds in the WF #2 escrow account. This will delay the wire transfer until tomorrow. I will send to you the confirmation of the wired funds as soon as I receive it. If you have any further questions on this matter please contact me. Sincerely yours, Jim Arlington I-------------+----------------------+-------------------------I ((Embedded I Pacific Energy I I limage moved (Resources Ltd. I Jim Arlington I Ito file: I I I Ipic19964.gif)I 310 "K" Street, I Vice President, Land & I I (Suite 700 I Government Affairs I I I Anchorage, AK 99501 I I 2 I I • I • I I I Direct: (907) Ijdarlington@pacenergy.coml I 1868-2112 I I I I Office: (907) I I I 1258-8600 I I I I Fax: (907) I I I 1258-8601 I I I I Cell: (907) I I I 1350-2746 I I I-------------+-------------------- --+-------------------------I From: Bob Tannahill [mailto:rtannahill@FNBAlaska.com] Sent: Monday, December 22, 2008 11:31 AM To: Jim Arlington Subject: FW: West Foreland Distribution -----Original Message----- From: Jennifer Kuritz [mailto:jkuritz@pacenergy.com] Sent: Monday, December 22, 2008 9:19 AM To: Bob Tannahill Cc: Elaine Knipe; mark@rdiroyalty.com Subject: West Foreland Distribution Bob, Attached is a letter signed by Darren Katic regarding the distribution of the West Foreland funds. (Elaine is on vacation and asked me to forward to you.) Please let me know if you need the original letter sent to you as well. Regards, Jennifer Kuritz Treasurer Pacific Energy Resources Ltd. (562) 262-4817 jkuritz@pacenergy.com If you are not the intended recipient of this email do not read, retain, copy, distribute, or disclose the content of this email. If you have received this email in error, please advise us by reply email @FNBAlaska.com and destroy the original message and all copies. (See attached file: SKMBT_C25008122211170.pdf) 3 Page 1 of 4 r Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Wednesday, December 24, 2008 1:39 PM To: Colombie, Jody J (DOA) Subject: FW: West Foreland Distribution Print cc's for file From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Wednesday, December 24, 2008 12:52 PM To: Stouffer, James A (DNR) Cc: Colombie, Jody J (DOA); Norman, John K (DOA); Elaine Knipe; 'Mark Oliver'; Bill Lyng; Joe Kilchrist; Darren Katic; Jennifer Kuritz; Gerry Tywoniuk Subject: RE: West Foreland Distribution Jim, Thank you for that confirmation. Have a Merry Christmas and a joyous holiday season. Best regards, Jim Pacific Energy Resources Ltd. 310 "K" Street, Suite 700 Anchorage, AK 99501 Direct: (907) 868-2112 Office: (907) 258-8600 Fax: (907) 258-8601 Cell: (907) 350-2746 Jim Arlington Vice President, Land & Government Affairs jdarlington@pacenergy. corn From: Stouffer, James A (DNR) [mailto:jim.stouffer@alaska.gov] Sent: Wednesday, December 24, 2008 6:31 AM To: Jim Arlington Subject: RE: West Foreland Distribution Jim The State received its portion of the distribution yesterday afternoon. Jim J~ap.~~~ ~. Stouffer, C;PA, CIA "- -ia1 Analyst, kGyaity Accounting PZanager AK-i! '., division cif Oil and Gas ~~50 West ith Ave., Suite 80C~ 1?.nchorage, AK 99501 (9~?7) 269-8?96 (90?) 269-8939 - Fay e-mail: jim.stoutfer@alaska.gov 12/29/2008 • Page 2 of 4 From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Tuesday, December 23, 2008 5:16 PM To: Colombie, Jody J (DOA) Cc: Norman, John K (DOA); Ainsworth, Melissa; KCunningham@ciri.com; Stouffer, James A (DNR); Elaine Knipe; Jennifer Kuritz; Bill Lyng; Doug Jeric; 'Mark Oliver'; Joe Kilchrist; Bob Tannahill; Darren Katic; Gerry Tywoniuk; 'Kristina Engelbert'; 'donandnola@rconnects.com' Subject: RE: West Foreland Distribution Ms. Colombie, Attached please see the fax I received from 1St National Bank Alaska this morning confirming that the wire transfer of funds from the WF #2 escrow account had been sent today to the banks designated by the State of Alaska, the MMS, CIRI and RDI (PERL's contractor who pays the ORRIS on behalf of PERL for their share of the production from federal lease A-035017 and state lease ADL-359112). I have also attached a check register (an electronic version of the paper original), which was processed on Sunday by RDI with a check date of 22 Dec 08 for the ORRI owners who will be receiving checks from RDI. Please note that there are several ORRI owners whose checks are being withheld by RDI pending confirmation of their transfers of interest and/or receipt of necessary tax information or other legal documentation confirming their interest. The names of those ORRI owners do not appear on the attached check register because they are either in a "transfer hold" or "suspense hold" category. I know that Nola Sanders, an ORRI owner in federal lease A-035017, has been in contact with the AOGCC on several occasions inquiring about the distribution of these escrowed funds. I just learned today that RDI has her ORRI in the "transfer hold" category because she transferred her ORRI to the Donald & Nola Sanders Trust and RDI is lacking sufficient documentation to verify that transfer of interest. I informed Mrs. Sanders of that fact today and told her I am working with RDI to try and resolve the issues that have caused them to place her account in this category. Unfortunately, since I just learned of this issue today I don't know that I can get it resolved with RDI before I return from a planned holiday vacation on January 5, 2009. I am trusting that the attached documentation is sufficient to verify that the WF #2 well escrowed funds have been transferred as authorized by the AOGCC. If additional information or documentation is necessary, please let me know and I will work with the necessary personnel to provide that additional documentation after the first of the new year. Sincerely yours, Jim Arlington - Pacific Energy Resources Ltd. ~" 310 °i<° Street, suite 70o Jim Arlington Anchorage, AK 99501 Vice President, Land & Direct: (907) 868-2112 Government Affairs Office: (907) 258-8600 Fax: (907) 258-8601 jdarl_n_gton@pacenergy.com Cell: (907) 350-2746 From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Monday, December 22, 2008 3:04 PM 12/29/2008 • Page 3 of 4 Tb: Jim Arlington Subject: RE: West Foreland Distribution Mr. Arlington, Thank you for update. I await your confirmation tomorrow. Jody Colombie From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Monday, December 22, 2008 2:23 PM To: Colombie, Jody J (DOA) Cc: Norman, John K (DOA); Ainsworth, Melissa; KCunningham@ciri.com; Stouffer, James A (DNR); Elaine Knipe; Jennifer Kuritr; Bill Lyng; Doug Jeric; 'Mark Oliver'; Joe Kilchrist; 'Bob Tannahill' Subject: FW: West Foreland Distribution Ms. Colombie, As you can see from the attached, Pacific Energy Resources, Ltd has directed the escrow agent, 1St National Bank Alaska, to distribute the WF #2 escrow funds today. However, since this letter was sent the escrow agent has discovered a discrepancy in the calculation of the amounts to be wired to each recipient listed and has asked for reconciliation with the spreadsheet sent to him over this past weekend that calculated the amounts for each party before he disburses the funds in the WF #2 escrow account. This will delay the wire transfer until tomorrow. I will send to you the confirmation of the wired funds as soon as I receive it. If you have any further questions on this matter please contact me. Sincerely yours, Jim Arlington _ Pacific Energy Resources Ltd. 310 °I<" Street, suite 70o Jim Arlington Anchorage, AK 99501 Vice President, Land & Direct: (907) 868-2112 Government Affairs Office: (907) 258-8600 Fax: (907) 258-8601 Cell: (907) 350-2746 'darlin to . _ 1---9-.-...-n..G~.pacenergy,com From: Bob Tannahill [mailto:rtannahill@FNBAlaska.com] Sent: Monday, December 22, 2008 11:31 AM To: Jim Arlington Subject: FW: West Foreland Distribution -----Original Message----- From: Jennifer Kuritr [mailto:jkuritr@pacenergy.com] Sent: Monday, December 22, 2008 9:19 AM To: Bob Tannahill Cc: Elaine Knipe; mark@rdiroyalty.com Subject: West Foreland Distribution 12/29/2008 Page 4 of 4 Bob, Attached is a letter signed by Darren Katic regarding the distribution of the West Foreland funds. (Elaine is on vacation and asked me to forward to you.) Please let me know if you need the original letter sent to you as well. Regards, Jennifer Kuritz Treasurer Pacific Energy Resources Ltd. (562) 262-4817 jkuritz@pacenergy.com If you are not the intended recipient of this email do not read, retain, copy, distribute, or disclose the content of this email. If you have received this email in error, please advise us by reply email @FNBAlaska.com and destroy the original message and all copies. 12/29/2008 x-17 Page 1 of 5 • • Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Friday, December 05, 2008 2:44 PM To: Jim Arlington Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa; Birnbaum, Alan J (LAW); KCunningham@ciri.com; Vladimir Katic; Darren Katic; Gerry Tywoniuk; Joe Kilchrist; Bill Lyng; 'donandnola@rconnects.com' Subject: RE: West Foreland #2Upper Distribution Mr. Arlington, Thank you; this is what we needed to know. If there is any change in the planned distribution date please notify us. Also, after the distribution has occurred, a letter from you confirming that fact will allow us to close our file. Thank you for your attention to this matter, John K. Norman Commissioner cc: file From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Friday, December 05, 2008 2:29 PM To: Norman, John K (DOA) Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa; Birnbaum, Alan J (LAW); KCunningham@ciri.com; Vladimir Katic; Darren Katic; Gerry Tywoniuk; Joe Kilchrist; Bill Lyng; 'donandnola@rconnects.com' Subject: RE: West Foreland #2Upper Distribution Commissioner Norman, I have just recently been advised by the accounting department of Pacific Energy Resources, Ltd. that they are finalizing their interest calculations for each party who will be a recipient of escrowed royalties from the WF #2 well and plan to make the distribution of funds from the West Foreland #2 Well Invested Escrow Account at 1St National Bank Alaska on December 10, 2008, next Wednesday. If you need any further information regarding this matter or have any questions pertaining to this transmission please let me know. Sincerely yours, Jim Arlington ' .:, ~, y ~, Pacific Energy Resources Ltd. 310 "K" Street, Suite 700 Anchorage, AK 99501 Direct: (907) 868-2112 Office: (907) 258-8600 Fax: (907) 258-8601 Jim Arlington Vice President, Land & Government Affairs jdarlin.gton@pacenergy.com 12/5/2008 Page 2 of 5 • • Cell: (907) 350-2746 From: Norman, John K (DOA) [mailto:john.norman@alaska.gov] Sent: Thursday, November 20, 2008 4:51 PM To: Jim Arlington Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa; Alan Birnbaum Subject: RE: West Foreland #2Upper Distribution Dear Mr. Arlington, Thank you for this status report; however, what we need is a date for distribution of the funds escrowed. If Pacific Energy Resources, Ltd. is unable to specify the distribution date, we will set the matter for hearing to determine why, and the Commission will fix a date for distribution. John K. Norman Commissioner From: Jim Arlington [mailto:JDArlington@pacenergy.com] Sent: Thursday, November 20, 2008 4:25 PM To: Norman, John K (DOA) Cc: Colombie, Jody J (DOA); Stouffer, James A (DNR); Elaine Knipe; Ainsworth, Melissa Subject: FW: West Foreland #2Upper Distribution Commissioner Norman, I apologize for the delay in responding to your verbal request to me late last week to provide you an update regarding the progress in distributing the funds from the escrow account for the WF#2 gas well as authorized by Conservation Order No. 532B. As I mentioned to you on the phone when we spoke, I had been involved in a conference call just prior to your call to me with the accountants from Pacific Energy Resources, Ltd. and Forest Oil Corporation discussing exactly what was needed to be done in order to initiate the distribution of the escrowed funds. There was a punch list that our accounting department was going to put together of remaining action items and a designation of a responsible party for each action. I still have not received that list and just now have been made aware that our accounting department had sent to the DNR on November 4th distribution spreadsheets for them to approve in anticipation of a planned distribution last week. I am not aware if they have approved them. I am also not aware whether or not the MMS/BLM has been provided with similar distribution spreadsheets for them to approve relative to their interest in the escrowed funds, or if they have, if they have been approved. I was just informed today that our primary consultant involved with this distribution was sick all last week so that any planned distribution of the escrowed funds for last week could not occur. I have copied for you below a string of recent emails between me and our accounting department and other emails between our accounting department and the Commercial Analyst, Royalty Accounting Manager with ADNR, Division of Oil and Gas so that you can see what efforts have been made and are currently being made to expedite the distribution of these funds. I do not have any further information I can provide you at this time but will inform you as soon as I know of a more definitive time line for the distribution of the escrowed funds. As you can see from the communications all parties are working diligently to conclude this distribution by the end of this month. If you have any further questions regarding this matter or this transmittal please call me directly and I will provide you with whatever information I have concerning this matter. 12/5/2008 Page 3 of 5 Sincerely yours, Jim Arlington • Pacific Energy Resources Ltd. ~.xn, `~'~ 310 "K" Street, suite 70o Jim Arlington ,' Anchorage, AK 99501 Vice President, Land & Direct: (907) 868-2112 Govemment Affairs Office: (907) 258-8600 Fax: (907) 258-8601 darlin ton Cell: (907) 350-2746 ~ 9 @pacenergy.com From: Jim Arlington Sent: Thursday, November 20, 2008 3:27 PM To: Elaine Knipe Cc: Mark Oliver; Doug Jeric; Joe Kilchrist Subject: RE: West Foreland #2Upper Distribution • Elaine, I can do that by calling or emailing Jim Stouffer with DNR or if you prefer you can contact Jim Stouffer directly. I desperately need ASAP the list of items remaining to be done in order to distribute the WF #2 well escrowed funds and a projected timeline as to when they will be completed. THANKS. Jim Pacific Energy Resources Ltd. 310 „K„ Street, suite 70o Jim Arlington Anchorage, AK 99501 Vice President, Land & Direct: (907) 868-2112 Govemment Affairs Office: (907) 258-8600 Fax: (907) 258-8601 darlin. ton_ acen.e..r com.. Cell: (907) 350-2746 t ~ @P gy~ From: Elaine Knipe Sent: Thursday, November 20, 2008 2:32 PM To: Jim Arlington Cc: 'Mark Oliver'; Doug Jeric Subject: West Foreland #2Upper Distribution Jim, Please confirm that the State of Alaska interest to be earned is Bank of America prime rate plus 1.25%. 12/5/2008 Page 4 of 5 • • Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 3:32 PM To: Stouffer, James A (DNR) Cc: 'Mark Oliver'; Jim Arlington; Doug Jeric Subject: RE: West Foreland Escrow Distribution Jim, Besides the below 2 pricing questions below, do you have January 2004 price of No. 2 fuel Oil at Tesoro refinery at Niskski. Thank you for your assistance. Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 From: Elaine Knipe Sent: Thursday, November 20, 2008 2:07 PM To: 'Stouffer, James A (DNR)' Cc: 'Mark Oliver' Subject: RE: West Foreland Escrow Distribution Jim Do you have the pricing of the following: 1. January 1, 2008 price of No 2 fuel oil at Tesoro refinery at Niskski. 2. August 1, 2008 price of No 2 oil at Tesoro Kenai refinery. Thank you Elaine Knipe Controller -Alaska Pacific Energy Resources, Ltd 111 West Ocean Blvd, Suite 1240 Lang Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 12/5/2008 Page 5 of 5 • Fran: Stouffer, James A (DNR) [mailto:jim.stouffer@alaska.gov] Sent: Monday, November 17, 2008 3:57 PM To: Elaine Knipe Subject: RE: West Foreland Escrow Distribution Elaine Are you waiting on me to do something before you send the reports and make distribution of the escrow account? I know that additional interest is due on the reports that Forest send since Norvin computed interest through 10/31/08. This can be accomplished on the payment summary report (S1) as OUI. Jim . v~oufter, ~'PA, CTA ~~ a~_ P:s°~z l yst, Royalty f`,cc~ur.ting P~Ianager -r ~~_l: j.in.stouffer@al~sk.~.gov From: Elaine Knipe [mailto:eknipe@pacenergy.com] Sent: Tuesday, November 04, 2008 1:44 PM To: Stouffer, James A (DNR) Subject: West Foreland Escrow Disttibution Jim, Please review and approve the attached West Foreland Escrow distribution worksheets. If you have any questions, please contact me. The planned distribution is next week. Thank you very much for your assistance. Elaine Knipe Controller -Alaska Pacific Energy Resources, ltd 111 West Ocean Blvd, Suite 1240 Long Beach CA 90802 Office: 562/628-1551 Cell: 310-970-2434 12/5/2008 #16 ~~' ( ST ATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF FOREST) OIL CORPORATION for an order) granting a permanent exception to ) the spacing requirements of 20 ) AAC 25.055 to allow for production) from the West Foreland #1 gas ) well, West Foreland Field, Cook ) Inlet, Alaska; and allocating ) production from the West Foreland) #1 well to Federal lease A-035017 ) and State of Alaska lease ADL- ) 359112 ) West Foreland Field West Foreland Undefined Pool October 8, 2003 ORDER ALLOCATING COSTS OF HEARING On February 8, 2002, the Commission issued Conservation Order 450B, which among other things granted a permanent spacing exception to allow production of gas from the West Foreland #1 well. In addition to its usual expenses of publishing a notice of public hearing and of having the hearing recorded and transcribed, the Commission paid for an amended notice of public hearing when the hearing had to be postponed from its originally scheduled date. This postponement was necessary because of Forest Oil Corporation's delay in mailing the required notification to royalty owners. While Forest pays regulatory cost charges under AS 31.05.093, and while its application was meritorious, the Commission finds that the additional expense of a second public notice that was imposed on the Commission by Forest's delay in this matter justifies allocating that particular expense to Forest. The amended notice of public hearing cost the Commission $154.46. Accordingly, this cost will be allocated to Forest. AS 31.05.085(b) provides that the Commission shall provide an opportunity to any person objecting to an allocation to be heard before the allocation becomes final. Forest may object to this allocation by filing an application for rehearing under AS 31.05.080(a). ~, NOW THEREFORE IT IS ORDERED: 1. Costs of hearing in the amount of$154.46 are allocated to Forest under AS 31.05.085(a). 2. This order will not become final until (a) the day after the time has expired for filing an application for rehearing under AS 31.05.080(a), if no application for rehearing is filed; or (b) the Commission finally disposes of any application for rehearing of this order that may be filed. 3. Forest shall pay to the Commission the costs allocated by this order no later than 30 days after this order becomes final. DONE at Anchorage, Alaska, this 9th of October 2003. C' ~ sar~ . L~ Alaska Oil and Gas Conservation Commission R~riC~::' 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 tiled. The Commission shall grant or refuse the application in whole or in pal1 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., lOth day after the application for rehealing was filed). i certify t.h,at.. on jQ.lg_\~~ of the above was~a~ed~ ailed to 88CIf ~: ~~Tðri ~r1 _..~ West Foreland Field October 8, 2003 Page 2 of2 #15 1 2 3 4 5 6 7 8 9 10 11 12 13 t \ 14 15 16 17 18 19 20 21 22 23 24 25 '\ { \ I( ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING ) ) West Foreland #1 ("WF #1") Well; Well) Spacing Application for Permanent ) Exemption to Provisions of 20 AAC 25.055; ) Federal Lease (A-035017); State Lease) (ADL-359112) Alaska Oil and Gas ) Conservation Commission Conservation ) Orders Nos. 450 & 450-A Compensatory) Royalty Agreement Final Allocation of ) Reserves & Production. ) In Re: TRANSCRIPT OF PROCEEDINGS , \"0,, !Ut (' I~: ..) L~ Anchorage, Alaska August 14, 2003 9:00 o'clock a.m. COMMISSIONERS: SARAH PALIN, Chairperson RANDY RUEDRICH * * * * METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 , Anchorage, Alaska 99501 (907) 276-3876 I~~IG~NA~ I ( ( ( ( 1 TABLE OF CONTENTS 2 3 OPENING REMARKS BY CHAIRPERSON PALIN. . . . . . . 4 TESTIMONY JIM ARLINGTON . . . . 5 DISCUSSION. . . . . . . . . . . . . 6 END OF PROCEEDINGS. ....... . . . . . . . 7 8 9 * * * 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 Page 3 Page 6 . Pages 8-17 . Page 16 .~. ( (' 1 PRO C E E DIN G S 2 (On record) 3 CHAIR PALIN: Good Morning. This hearing is now 4 called to order. It's Thursday, August 14th, 2003. With me 5 today is Commissioner Randy Ruedrich. We at our AOGCC offices 6 at 333 West Seventh Avenue in Anchorage. 7 Assistant Attorney General Rob Mintz is here also, as 8 the Commission's counsel. Jan Scott from Metro Court 9 Reporting is making a transcript of the proceedings, and you 10 can get a copy of these proceedings from Jan by contacting 11 Metro Court Reporting. 12 This hearing this morning concerns West Forland #1 13 Well. It relates to a request by Forest Oil Corporation to 14 make permanent the existing temporary well spacing exception 15 for the West Foreland #1 and to approve an allocation of 16 production from the West Foreland #1 Well. The proposed 17 allocation to lease A-035017 has been changed from 57 percent 18 to 58 percent and the proposed allocation to lease ADL-359112 19 has been changed from 43 percent to 42 percent. 20 The notice of this hearing was published twice on June 21 19th, and on July 3rd. These proceedings will be held in 22 accordance with 20 AAC 25.540. So far we've received two 23 written comments. Have we received any other than those two 24 so far? Okay. 25 John M. Robinson and Collins W. Brown both support the METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( ( ( 4 1 proposal and have put that in writing. 2 We'll ask Forest Oil to present testimony first. And 3 all persons wishing to testify will be sworn in, and each 4 witness shall state their name, who they represent and then 5 others wishing to testify or make a statement will be heard 6 from next. And the Commission may ask questions of you also. 7 And anyone else wishing to ask questions, we ask that you do 8 so, put those questions in writing and then if you could give 9 them to our Commission staff, the three sitting in the back. 10 We have a sign up sheet. 11 MS. COLOMBIE: It's going around. 12 CHAIR PALIN: Okay. Great. That's going 13 around. If you guys could sign in also. Thank you. So, 14 after hearing from the applicant, the Commission will hear 15 from any other persons who wish to provide a statement or 16 testimony. 17 Again, this hearing will be recorded. And we would 18 ask now, Forest Oil, if you have oil testimony that you wish 19 to present in response to the proposed rule. 20 MR. ARLINGTON: Yes. Thank you, Madame Chair. 21 My name is Jim Arlington. I'm the land manager for the Alaska 22 Business Unit for Forest Oil Corporation, with offices located 23 at 310 K Street, Suite 700, Anchorage, Alaska 99501. 24 CHAIR PALIN: Okay. And we're going to swear 25 you in then, okay? METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~ ( ( ( :~' 5 1 MR. ARLINGTON: Okay. 2 CHAIR PALIN: All right. If you would raise 3 your right hand? 4 (Oath administered) 5 MR. ARLINGTON: I do. 6 CHAIR PALIN: Okay. Thank you. Please 7 continue. 8 9 TESTIMONY BY MR. ARLINGTON 10 My testimony, oral testimony will be rather brief. 11 I believe that the previous written application and 12 documentation that we've previously provided the Commission 13 and its staff, I think speaks for itself. What I would like 14 to provide the Commission, at this time, are three affidavits 15 that speak to the efforts that Forest Oil has undertaken to 16 contact all of the royalty owners, specifically the over- 17 riding royalty interest owners on the two leases being 18 affected. 19 You have affidavits there from William o. Valley, who 20 is a certified professional land man. He's the individual who 21 had initially undertaken the search, at my direction, several 22 years ago, to identify the over-riding royalty interest owners 23 that had an interest in the federal lease. And it was that 24 list that I had previously provided the Commission when we had 25 made our initial application for the well spacing exception. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 It 6 ( 1 The affidavit I provided you from Mr. Valley indicates the 2 efforts that he had undertaken recently this year in June, to 3 update that list of over-riding royalty interest owners, and 4 the addresses that he had previously provided. 5 The second affidavit is one from Terrel Williams, who 6 is the supervisor for our division orders in the land 7 administration department for Forest Oil in Denver, Colorado. 8 And he also indicates the efforts that he had undertaken to 9 ascertain current addresses for the over-riding royalty 10 interest owners that had been provided to me, not only by Bill 11 Valley two years ago; but subsequent to that, I had 12 commissioned a division order title opinion to be prepared by 13 Joe Perkins with the law firm of Guess & Rudd, which was done ( 14 and completed in 2001. And based upon the information 15 contained in that division order title opinion, that 16 information was used to update the over-riding royalty 17 interest owners, both on the federal lease and on the state 18 lease. And the affidavit from Mr. Williams indicates that 19 they had used the information in their records, which were 20 updated by that title opinion from Mr. Perkins to ascertain 21 current addresses, both on the state lease and on the federal 22 lease. 23 And then finally, there's a third affidavit from Lee 24 Parks, who works in our Alaska Business Unit here in 25 Anchorage, that also indicates the efforts that she had ( METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 { ( ( ( ( 7 1 undertaken to contact over-riding royalty interest owners, and 2 particularly personal contact with Mr. Beaulieu, who's the son 3 of one of the original over-riding royalty interest owners on 4 the federal lease, and the fact that we were unable to 5 ascertain the whereabouts of his brother, who also has an 6 interest. 7 I would also like to testify that on June 17th -- I'm 8 sorry, on July 17th, I had placed in the United States mail, 9 certified mailings for everyone listed on the distribution 10 list that were all of the over-riding royalty interest owners 11 known to Forest Oil Corporation on that date, regarding the 12 hearing that is being undertaken today before the Commission. 13 And I've got documentation indicating that certified mail was 14 sent to each of those over-riding royalty interest owners at 15 that time. 16 The notice you already have a copy of, I've provided 17 to the Commission. I've also provided to the Commission, 18 copies of the supporting documentation that supports our 19 recommendation of a final allocation, 58 percent of production 20 to the federal lease, and 42 percent of the production to the 21 state lease. 22 I also have previously provided the Commission, signed 23 concurrences from representatives of the Bureau of Land 24 Management who administer the federal lease, and from the 25 Department of Natural Resources for the State of Alaska, who METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~.. ( ( .~ 8 1 administer the state lease that are affected by the spacing 2 exception. Concurring with our recommendation of a final 3 allocation of 58 percent, 42 percent to the respective leases. 4 Other than that, I don't have any additional testimony 5 to present to the Commission. I stand ready to provide 6 answers to any questions you might have. 7 CHAIR PALIN: Okay. 8 MR. ARLINGTON: Now, I also have with me, Paul 9 Winslow, who is our reservoir engineer, who prepared the 10 recommendation upon which the final allocation was based. 11 CHAIR PALIN: Okay. Mr. Winslow, do you wish 12 to testify also, or answer questions? 13 I'm just here to answer MR. WINSLOW: 14 questions. 15 CHAIR PALIN: Okay. Thank you for your 16 testimony. Thank you. Commissioner Ruedrich, do you have 17 questions? 18 COMMISSIONER RUEDRICH: Just a couple of brief 19 questions. Your original estimate -- what is your estimate of 20 original gas in place that is in this allocation? 21 MR. WINSLOW: As of the current pressure data 22 that was taken in January, that's 7 point -- or excuse me, 8.3 23 BCF. 24 COMMISSIONER RUEDRICH: 8.3 BCF. 25 MR. WINSLOW: I don't know if you need to METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( ( ( 9 1 swear me in, but..... 2 COMMISSIONER RUEDRICH: Do you want to swear 3 him in? 4 CHAIR PALIN: I'll swear you in. Do you want 5 to raise your right hand? 6 (Oath administered) 7 Yes, I do. MR. WINSLOW: 8 CHAIR PALIN: Thank you. Mr. Winslow, with 9 Forest, also. 10 COMMISSIONER RUEDRICH: That is -- is that 11 higher that your prior estimate? 12 MR. WINSLOW: Yeah, the original estimate back 13 when, I think two years ago, when the allocation was first 14 assessed was 7.4 BCF. 15 COMMISSIONER RUEDRICH: Okay. What was the 16 specific -- any simple concise answers to what you've been 17 able to determine to reach the conclusion of this larger, and 18 therefore the change in royalty distribution? 19 MR. WINSLOW: Both of these estimates were 20 based on pressure and cum. P over Z..... 21 COMMISSIONER RUEDRICH: Okay. 22 MR. WINSLOW: .... . versus cum. production plot. 23 And basically, with very little production at the time, 24 actually both of these, we still haven't produced that much 25 from the field. Your points are very close together and METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ~ 2 3 4 5 6 7 8 9 10 11 12 13 ( 14 15 16 17 18 19 20 21 22 23 24 25 { 11 ~.. 10 1 you're extrapolating to abandon of pressure or a zero pressure for gas in place. And with points that close together, you get a wide variance and a little bit of difference in either the pressure or the cum. will make a big difference in estimate. That's the main reason. COMMISSIONER RUEDRICH: Okay. Are there any geophysical data to cloud your interpretation? MR. WINSLOW: The original mapping was based on 2-D seismic data, and all the original maps are based on that. Nothing has changed since the original allocation. COMMISSIONER RUEDRICH: Okay. MR. WINSLOW: No additional data has become available since that time. COMMISSIONER RUEDRICH: Is the gas process at the well site, or what is the production scheme here? MR. WINSLOW: We're actually doing -- I've done several things with it. I -- do you want to answer? MR. ARLINGTON: Yeah. There's no processing that's done -- of the gas that's produced on the lease. There's -- it goes through a, I guess a separator or a cleaning, taking minor water out at the well head and then it's distributed via a six inch gas line to our West McArthur River Unit, which is where the gas is used at this time as fuel gas for the West McArthur River Unit oil production facilities. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( ( ( 11 1 COMMISSIONER RUEDRICH: Now is it metered then 2 at West McArthur or at the well? 3 MR. ARLINGTON: Both. We have a meter at the 4 well head, at the well site that has been approved and 5 inspected by the Bureau of Land Management. That was one of 6 the requirements prior to placing the well on production. 7 COMMISSIONER RUEDRICH: Okay. 8 CHAIR PALIN: Okay. Other questions? 9 COMMISSIONER RUEDRICH: None that I have. 10 CHAIR PALIN: Okay. Rob Mintz, do you have 11 questions or comments you would like to make? Thank you. 12 MR. MINTZ: Yeah. Just to make sure that the 13 record is complete on the notice... . . 14 COURT REPORTER: Excuse me, Mr. Mintz, you 15 need a microphone. 16 MR. MINTZ: Okay. Yeah. As I was saying, 17 just to make sure that the record is complete as far as the 18 notice issue goes, I want to ask Mr. Arlington a few 19 questions. Okay. So, is it your testimony that -- that 20 Forest or its agents, undertook diligent efforts to identify 21 and locate all royalty owners in both the state and the 22 federal lease that are issued here? 23 MR. ARLINGTON: Yes. 24 MR. MINTZ: And did you -- did you mail on 25 July 17th, or on or about July 17th, notice of this hearing, METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( 6 7 8 9 10 11 12 13 ( 14 15 16 17 18 19 20 21 22 23 24 25 ( ~. 12 1 an opportunity to be heard, to all of the royalty owners that 2 you had addresses for? 3 MR. ARLINGTON: Yes. 4 MR. MINTZ: Did you also mail or otherwise 5 provide notice to Cook Inlet Region, Incorporated? MR. ARLINGTON: Yes. MR. MINTZ: Was that about on the same date? MR. ARLINGTON: That was on July 25th. MR. MINTZ: All right. MR. ARLINGTON: And I provided a separate notice, even though they had previously been aware of the hearing, to Steve Martinez with the Bureau of Land Management and to Chris Reft (ph) with the Department of Natural Resources on that same date. MR. MINTZ: Thanks. On a different issue. The earlier orders of the Commission in this matter required an escrow to be set up, and one of the provisions of that escrow arrangement was that no funds would be dispersed except on order of the Commission. So, presumably, one of the elements of the Commission's order coming out of this hearing should be an authorization to distribute funds from the escrow arrangement? MR. ARLINGTON: Correct. And Forest would so ask and seek that direction upon approval of the spacing exception. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( 1 2 3 4 5 6 7 8 9 10 11 ( ( 13 MR. MINTZ: Do you have any suggested language or provisions for how that could be carried out? In other words, would -- would the escrow agent make the distributions or would you propose that Forest would make them or -- or how would you propose to do that? MR. ARLINGTON: The provisions for distribution of the escrow are already stipulated and specified in the Compensatory Royalty Agreement that was executed by Forest Oil, the Bureau of Land Management and Department of Natural Resources. And I would propose that those escrow instructions and that escrow agreement that was 12 attached and made a part of the Compensatory Royalty 13 Agreement, be the procedures that are followed for 14 distribution of the escrow funds. 15 MR. MINTZ: Can you summarize how that would 16 happen? 17 MR. ARLINGTON: Let's see, I've got the 18 Compensatory Royalty Agreement here. Just to remind you, that 19 the Commission does have a copy of this. The Compensatory 20 Royalty Agreement itself doesn't have a clear summarization of 21 the procedures. We have the Exhibit D to the Compensatory 22 Royalty Agreement is the West Foreland's #1 invested escrow 23 agreement, which is two and a half pages. We did provide the 24 escrow agent the order signed by the Commission authorizing 25 the distribution of the escrow funds. METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( 1 2 3 4 5 6 7 ( ( if 14 The escrow agent has invested the funds. When the parties have agreed upon final allocation, which we have done, they shall give notice to the invested escrow agent of their joint directions concerning the release of the escrowed funds to the lessors, in accordance with the final allocation by completing and executing the escrow instructions, which is in a form attached to the agreement. Upon receipt of such 8 written instructions, the invested escrow agent shall disperse 9 payment to lessors in the manner specified in Exhibit A. 10 MR. MINTZ: So, that -- it says, lessors, what 11 -- how would -- then who would distribute the funds to the 12 over-riding royalty owners? 13 MR. ARLINGTON: The -- Forest would be 14 responsible for distributing funds to its over-riding royalty 15 interest owners, which are subject to the two leases, the 16 federal lease and the state lease. 17 MR. MINTZ: Okay. 18 MR. ARLINGTON: So, the escrow agent would 19 distribute the funds to the State of Alaska and to the Bureau 20 of Land Management, any remaining funds would go to Forest, 21 and that's provided for in the Compensatory Royalty Agreement. 22 Those funds that then come to Forest, Forest would have 23 responsibility for distributing the funds to the over-riding 24 royalty interest owners. 25 MR. MINTZ: All right. If you had any METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 (: ( ( iI, 15 1 suggested language for the Commission's order to -- for 2 whatever the escrow agent needs, maybe you could submit that. 3 MR. ARLINGTON: Okay. I'd be happy to do 4 that. I don't have that prepared at this time. 5 MR. MINTZ: Sure. Maybe within a week or ten 6 days? 7 MR. ARLINGTON: I'd be happy to do that. 8 MR. MINTZ: If that's agreeable with the 9 Commission? 10 COMMISSIONER RUEDRICH: Why don't we just say 11 next -- no later than next Friday? 12 MR. ARLINGTON: That would be fine. 13 COMMISSIONER RUEDRICH: Which would be 14 essentially 10 days, nine days? 15 MR. ARLINGTON: That would be fine. To the 16 Chair's attention? 17 COMMISSIONER REUDRICH: Yeah. 18 MR. MINTZ: All right. That's all I have. 19 CHAIR PALIN: That's all you've got? Go 20 ahead. 21 COMMISSIONER RUEDRICH: There was a question 22 in the back. 23 CHAIR PALIN: Okay. Are there questions that 24 have been put in writing from the audience? (No Response) 25 Okay. Anyone else wishing then to make a statement or to METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( ( ( ( ~' 16 1 testify? 2 COMMISSIONER RUEDRICH: I guess we're done. 3 CHAIR PALIN: Okay. I guess we're done. Then 4 do we keep the record open then, Rob, as we wait to receive 5 that information? 6 MR. MINTZ: For that purpose, yes. 7 CHAIR PALIN: Okay. For that purpose. And we 8 do anticipate issuing a decision within 30 days. We'll look 9 forward to that information. 10 MR. ARLINGTON: Okay. 11 CHAIR PALIN: Applicants, do you have anything 12 further, then? 13 I don't. MR. ARLINGTON: 14 CHAIR PALIN: Okay. 15 MR. WINSLOW: I don't. 16 CHAIR PALIN: If not then, the hearing is 17 adjourned except that the record will remain open until that 18 information is received by the Commission. Thank you. 19 MR. ARLINGTON: Okay. Thank you very much. 20 CHAIR PALIN: Off the record. 21 (Off record) 22 * * * END OF PROCEEDINGS * * * 23 24 25 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 ( ( ( ~. ( 17 1 C E R T I FIe ATE 2 SUPERIOR COURT ) )ss. ) 3 STATE OF ALASKA 4 5 I, Janice S. Scott, Notary Public in and for the State of Alaska, do hereby certify: 6 7 THAT the annexed and foregoing pages numbered 2 through 16 contain a full, true and correct transcript of the Public Hearing before the Alaska Oil and Gas Conservation Commission, taken by Janice S. Scott and transcribed by Janice S. Scott: 8 9 THAT the Transcript has been prepared at the request of 10 the Alaska Oil and Gas Conservation Commission, 333 West Seventh Avenue, Anchorage, Alaska, 11 DATED at Anchorage, Alaska this 28th day of August, 12 2003. 13 SIGNED AND CERTIFIED TO BY: 14 //--~ '"4 ~ ..- /( ?br-- (,-"" .}ß't(,/~ê)t..L., (ir.2~~ ,/ ?R[,.{.",.. Janice S. Se'ott,,/ Nota'P'Y in and for Alaska My tommission Expires: 2/02/04 15 16 17 18 19 20 21 22 23 24 25 METRO COURT REPORTING 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 #14 ~ ,t FOREST OIL ~ CORPORATION ,J / (J ('/(r';l¡)f{'('¡ . ¡Y,ul{' )'(!(J ('C!~I('¡lfln~(j{', ('c¡'la,ii-a ,O,O/;(J! (0')(/7) ,/,;S-S(;'(/(/ . (Wi;) ^~.;S-S(;'(/ / (C.j0/') August 22, 2003 Sarah Palin, Chair Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 J\nchorage,AJe 99501 HAND-DELIVERED Re: West Foreland #1 well; Conservation Orders No's. 450 & 450-A Dear Commissioner Palin: As promised during the hearing held August 14, 2003 on the referenced matters, Forest Oil Corporation ("Forest") hereby submits language it would propose to be included in the conservation order to be issued by the Alaska Oil and Gas Conservation Commission ("AOGCC") concerning disposition of the funds in the escrow account established pursuant to the Compensatory Royalty Agreement. "The Commission, having approved an allocation of production from the West Foreland #1 well of 52% to Federal Lease A-035017 and 420/0 to State of Alaska Lease ADL-359112, for any interval not deeper than 9,527 feet measured depth, does hereby authorize the disbursement to the persons entitled thereto of the funds that have been placed in First National Bank of J\nchorage Account No. 80-8250-00, pursuant to that certain Escrow Agreement, First National Bank Of J\nchorage, West Forelands #1 Invested Escrow Agreement, dated April20, 2001, hereinafter the "Escrow Agreement", consistent with the allocation approved by the Commission. In the case of escrow funds otherwise due to an overriding royalty interest owner who has not been located despite Forest's diligent efforts to do so, the funds may be disbursed to Forest. Such disbursement does not affect Forest's liability to pay royalties to such overriding royalty interest owner. Subject to the disbursement of funds as authorized by this order, Forest's obligations under Conservation Orders No. 450 and 450-A to maintain and pay into an escrow account are terminated. " If you have any questions regarding this submittal, please feel free to call me at 868-2112. Sincerely, FOREST OIL CORPORATION /---.~:\. ~ .' //. /";.... ,..? ...... V'j' //~-~ /' .,~;I ~ t--.- L ~-'y',/~,;,-,,:-.,_. ',,/"Jim Arlington i Land Manager - Alaska Business Unit #13 ~i '\ STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION NAME - AFFILIATION (PLEASE PRINT) p"" V\. , pt), U I" S" v t.J ~ I W f1d¿~t-L : ~ ~~,~)~~ -:5/e-u<- ~V/~S ,,}- c( I,\~" 00', ¡ I / C¡ r"" S' r)\" J06,/ CdeH"^- ß¡ ~ .&10,{ f"/ f1iJ 1V1 '1c C)'. t..u ( rYl,:-J t, '<~ .S'}~ ~ 0 r lì~l~ West Foreland #1 August 14,2003 at 9:00 am ADDRESS/PHONE NUMBER TESTIFY (Yes or No) 310 ).( S'~~rI. ~7{;1() Â-ñl'~¿~X< tlÇÒ l v I ~ / Ó £ 51.-"r:)~ S'-/r:. ?~ 4u¿"wr. .4.{9'J1£.¿ 0".5 ~aG~C ~o . l .AJD AoCec No ~:ìC; Lø0 '. () I.L ') N'1.- C.-'rl:::- 73L ¡!,1 - C. 'T'F 11 () V1t) NtJ Ä-Jo \Hearing_Sign-In #12 ~ AFFIDAVIT STATE OF ALASKA § § § THIRD JUDICIAL DISTRICT BEFORE ME, the undersigned authority, personally appeared Leigh Parks who is personally known to me and first being duly sworn according to law, upon her oath, deposed and said: "My name is Leigh R. Parks. I am of sound mind and capable of making this affidavit. I am over the age of 18 and have personal knowledge of the facts stated herein which are true and correct. I am employed by Forest Oil Corporation ("Forest") in its Alaska Business Unit as a receptionist who also supports the Land Department. William O. Vallee, CPL, provided the Alaska Business Unit Land Department of Forest a revised ownership list, with addresses, of Overriding Royalty Interest ("ORRI") Owners on or about June 6, 2003 for the West Foreland Field, Oil & Gas Lease Serial Number A-035017. I also received a list of all ORRI Owners and their addresses for State Lease ADL 359112 from Forest's Land Administration Department in Denver via email on or about June 17, 2003. Upon receipt of the proceeded to search national databases through the internet, via people.yahoo.com and AnyWho.Com, to verify the addresses provided and update the list if new addresses were found. I called ORRI owner, Paul Beaulieu, in France at his phone number of 011- 33254327207 to verify his address and detennine ifhe knew the address or phone number of his brother, Richard D. Beaulieu. He had no idea of his brother's whereabouts. Further Affiant sayet~/tft. :" .. SUBSCRIBED AND SWORN TO BEFORE ME the undersigned authority on the 14th day of August, 2003. \.~tt[(({(r((( \\\.\ 'f.~'l. ~.~({(,rr;-- ~ ~.' "--"~~'-- ~~"~OTA~",~~ :::: ~. - ....a}.. . c. :: --2' ^ .W""'" "- . ,vII:"'!>! ,r" -. '-' "7 . Vc:.ð;: '\')1 . m....., '-':> . (j) -'.'....., --4 .:.,.¡. .........., '?' . ( ....... :::- g . ?/-~ ,do,.. S':::; -:::, ~ . . ,. OF ~L1"'" "ìì"'-' ./ ~ '. 1'1. .' "."\"\ ././ J'/Ó ...' '6":\ :\\ ./.J)} E'Xpires'. J'ð(\\ \ \\ . J) ) I } J ) ) ] , i{ ¡" ill AFFIDA VIT This is to certify that I am a Land Management Consultant residing in the State of Alaska, experienced and knowledgeable in the following areas of expertise: 1. That as a Land Management Consultant, I am familiar with the records maintained by the United States Department of the Interior, Bureau of Land Management and the State of Alaska, Department of Natural Resources, Division of Oil & Gas as they pertain to the status of public lands in the State of Alaska; 2. That I am a Certified Professional Landman, Certificate Number 0186, as Certified by the American Association of Professional Landmen; 3. That I am a member of the Alaska Association of Professional Landmen; 4. That I have been certified and approved by the U. S. Department of the Intèrior, Solicitor's Office to provide evidence of title to the Department in Alaska; 5. That I have been a practicing Professional Landman for thirty seven (37) years in the State of Alaska. Overriding Rovaltv Owners - West Foreland Gas Field: My services have been retained by Forest Oil Corporation to locate and identify all owners of Overriding Royalty for the West Foreland Gas Field, Oil & Gas Lease Serial Number: A-035017. This is to further certify that I have diligently searched National, Regional & Local databases through the Internet, Local and National Telephone Directories, Alaska Court System Records, Regional and Local Directories and trom personal knowledge. Other extensive databases searched, are (1) Public Knowledge Systems, an Alaska based Systems database provider, and (2) KnowX Ultimate People Finder, living and death records on a national and international basis. I have also personally held discussions on this matter with many of the Overriding Royalty Owners as reflected on the revised ownership list dated June 6, 2003. ~ It{ ß ~ SIGNED this r;RLsRtÀ Day of August, 003 at STATE OF ALASKA ) ) § THIRD JUDICIAL DISTRICT ) J /f!''-''/,,/I' SUBSCRIBED AND SWORN TO BEFORE ME the undersigned authority on this ~Day of August, 20~{\ t l (( {( rr r (r. \.\.\.'~'~'U'~~¿;;'-'- 77~ ~ L&eJA-b<o./ ~ -\. ,:". - - - .:~ r;:. Notary Pu~c ¡:j ~..' ~ 0 :_~ ~ y' . ~ My commission expires: I/;/ .2¿) ¡} ¿, :::: «. : (J) ::: I / ~ z: PU8L\G .m~ ~ ~ '. U\.A ¡$: !} :::.' ~ c '. '9~ '?)' .' IV'::::' ~ °0, '. ~ OF Þ-t;t>:. ~".:~" ././ r,>;{Š-. ...' ~!f ,\ \ ././.J JIQ/) Expires'. 'J1>\~\ \ \ \ ))J)JlJ))\ Au¡-13-03 02:54pm From-FOREST OIL CORP ( +3038121445 T-8S1 P.002/DD2 F-742 ~: AFFIDA VIT STATE OF COLORADO § § § COUNTY OF DENVER BEFORE ME, the undersigned authority, personally appeared Tern}) Williams who is personally known to me and flTSt being duly sworn according to Jaw, upon his oarh, deposed and smd: ('My name is Tenill Williams. I am of sound mind and capable of making this affidavit. I am over the age of 18 and have personal knowledge of the facts stated herein which are true and COtTect. I am employed by Forest Oil Corporation ("Forest") in its Land Administration Department as Division Order Supervisor. The Land Administration Department afForest was contacted by Forest's Anchorage office on or about June 16, 2003 to locate and identify CUlTent addresses for all owners of Oveniding Royalty for the West Foreland Field, Oil & Gas Lease Serial Number A-035017. In order to determine the current addresses for all owners of Oveniding Royalty for Oil & Gas Lease Serial Number A-035017 the Land Administration Department of Forest searched national databases through the internet, national telephone directories, regional and local directories7 industry directories, company files and company databases. Other extensive databases searched were (1) Trans Union Trace, (2) Switchboard and (3) Who's Who in American Petroleum Industry. It was also detennined that aU Overriding Royalty owners for the West McArthur River Unit CLWl\tfRU"), Oil & Gas Leases Serial Numbers ADL 359112 and ADL 359111, have previously been located. Each of these owners is CUITently in a pay status for the WMRU." Further Affiant sayeth not. ~~ Ternn Williams fkJ- SUBSCRIBED AND SWORN TO BEFORE ME the undersigned authority on the 13th day o~ ~~gust, 2003. , . ~~. NOTARYPUBUCIN FOR THE STATE OF COLORADO 030408vOl " ' Au¡-13-03 02:54pm From-FOREST OIL CORP ( +3038121445 T-861 P. 001/002 F-742 FOREST OIL CORPORATION 1600 B~OADWAYr SUITE 2200 DENVER, COLORADO 80202 MAIN NUMBER - (303) 812-1400 LEGAL DEPARTMENT FAX - (303) 812-1445 DATE: t Á--~vt~ ODl- TcS9,- 81.rD1 . PHONE #: To: COMPANY: FAX #: FROM: LEGAL DEPARTMENT - SEE BELOW - NEWTON (TREY) WILSON 303-812-1569 'i.. ROBERT G. LEO 303~812-1785 - RICHARD W. SCHEUN 303-812-1461 - lIZBETH J. STENMARK 303-812-1407 - SKIP MARTER 303-812-1701 - DAVYNAJ. MARnNEZ 303-812-1677 - ROBERTA LOUIS 303...812..1502 -- GLORIA SRIKIJ1<ARN 303-812...1489 - MAkTIJoRDAN 303..812-1579 TOTAL NUMBER OF PAGES (INCLUDING COVER SHEET): d .---- ----------- - - ------------ COMMENTS: 0C \, -::t Q..( n \ \ ~ )\ ~\ ~ (k-»1{ S "'/'./""'/\/.~,., '''-"""",",-o"'v '~~/,y ""'../",,,,'"'.1""... ^~,~",.., ""./"'V".^'/"v'/'\/'.. "'v"v'I".I"v'/ ./'.../'I".",.~""'/'..~'- "~/'/"./V""../'../"'rÞ"'v".I"'-v-.V""""'''..v''''.I''wI''"''..''v^,",^;o,.,,,''J''^/'> "'-t"V'a"'.".'\.I'"",,," THE INFORMATION CONiAINED IN THIS FACSIMILE MESSAGË IS PRIVILEGED AND CONFIDENTIAL INFORMATION INTENDED ON!. Y FOR THE USE OF THE INTENDED RECIPIENT NAMED ABOVE. IF YOU ARE NOT THE INTENDED RECIPIENT, YOU AFiE HEREElY NOTIFIED THAT ANY COPYING OF THIS COMMUNICATION OR DISSEMINATION OR DISTRIBUTION OF rrTO ANYONE otHER THAN THE INTENDED RECIPIENT IS STFUCTLYPROHIBITED. IF YOU HAVE;;: RECEIVED THIS COMMUNICATION IN ERROR, pL~SE IMMEDIATELV NOTIFY US BV TELEPHONE AND RiæTURNTI"IE ORIGINAL MESSAGE TO US A.TTHE ABOVE ADDRESS viA THE U.S. POSTAL SERVICE. ."""..~,.Þ"""'/'-o/' "^,,,~, """''''-''''''/' ^.. """""","""/",/,-^,,,""., .V'-./ ",./'.,.,"""",.,^^.,""'~"'~'" /,"",.'v"'''''''''''''''''"",'''',,^-,''''''''. './".A,'V,,^,,/"../' ...^/"V".I"./"""'''''.A.....",,^ .,,,,.v'-/V^.."o,,/'t../'"v' A,i'V """""/"'Vv './"....~~, IF you HAVE ANY PROBLEMS WliH THIS FAX, PLEASE CALL DAVVNA.J MARTINEZ AT 303-812-1677- 991207v01 ,.. ~ 8-/Y.()3 l;J. For<../~~ QUG<;~~>: j. AN- ~ ~j ~/MI-&-r~ v/~,:b~ en-- ~ ~ I ~l c.. cd'i.1-"I. -/-t.-{ ¡ ..:5 u(f~(j' en.f CrY" C-G-Y) -Ir~ .j I~.I- ~ ~. Jl-~-I-t!-Y1+ tf /0.- gcu CJ..-C-c.-UYhV(qh~5 d..L<f/~-le.j /Y}'.. Ç~5¡~ ~./- f(J ~cyo~ -::' z. -Ls d~ rv~ Q.J ~ w-€-I(ß/~? 3, 'JI\ð~((:.rt- \ c:;., ~Q.. "> ~(t-k.0:.~ ~. I\A~)J /í <:::Jc;:f ,. 77ð-1-,. tJc...../ (¡/ vt:::- 5 4J~.> ~. - Wc...."j- i.s{ ~lJvr ~S¡';""'4.f,<: ! ? DI..(/ocde6 b~ !e,,-s..- . e ...s {. ,. ~ <::V T-<. ûG-LP B'¡c/.ð3 t.-U~.s +k.< frJ/,Jo/ (fA): * '" -+- ~E. Æ ." d A.. '( f' IJ C:> C. c::t tt.~ kd I~~s.-e. 1. <.of. ß ~ F +<o-hJ\ ~ w h.. t:" f #11 FROM: JMR ( PHONE NO. : 7136822653 Aug. 14 2003 10:04AM Pi JOHN M. ROBINSON 9333 Memorial Drive, Suite 201 Houston, Texas 77024 (713) 956-6274 Fax (713) 682-2653 .... '/'1~~, "" .. '1-Ä,~:-. .---, ,. ,: .;',,~, , '''~v;. . . <~;~> ';'~:~>0." qö - """':~b' '~~~~~;;~i";'" . .~~; August 14, 2003 Alaska Oil & Gas Conservation Commission Attention: Sara Palin and Steve Davies 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 VIA FACSIMILE: (907) 276-7542 RE: Conservation Orders Nos. 450 & 4S0-A West Foreland # 1 Well ("WF # 1") Allocation of Reserves & Production Federal Lease (A-035017) & State Lease (ADL-359112) Dear Ms. Palin, After review of Forest Oil Corporation's Confidential Memorandum wlùch sets out the cumulative gas production for the referenced well to be only 232.7 MMcf gas, I accept Forest's WF #1 well Production Allocation Recommendation. If you have any question regarding my decision) please contact me at your earliest convenience. 0; /IL- JMR;db #10 f ( ~ A~ M~ Ar/)~ ~_A -1~hAd ~J?~ -þÞ â. -0 3!:)()/7 .xdtæ~ ~MJ!4 d fJ;G .3 5" '1/1 2- !);¿-~ #.¿Isó ~ ~5CJA Ó-!L4iJ tJ ~ A~ ~~;V ~~ (~ ~~~<ld ' ~~~'- r1 \'.' 'I~, :':'l'\,,\.,~ t;:,"':t',1.'n...', ~ \i,l*-.'~ \1) ',': ~: ~~"'"'" ~~~' r' 'H (;'~ b: .1- ~:'j !~$¡Œ C~! ;f \,~;' Gon~. GGmm~')3ion 14:\~TII\:.ì~ FROM: Kathleen & Buster Brown, 't FAX NO. :9406912029 Aug. 13 2003 06:26PM Pi úwu xilzur: /iJ / . . ~ ~ d~ :f¿Æá4~-h¡ ~A/ltfJ/J1¿f {j Ú #9 @) f FOREST :( OIL CORPORATION .; / ( ,,,)( 'rY¡ n'(' ¡ . ,-'/(( (1(' )// r( ;;( (.j¡ (. nrf/(' , r(/!rr,Ja . (j. (j,; (i / (or)!';) /;S-"(J'( (' . (r;r ;)/.ïS-,(j'(/ (r-/~u) July 25, 2003 Ms. Sarah Palin, Chair Alaska Oil and Gas Conservation Commission 333 W. 7111 Avenue, Suite 100 Anchorage, Alaska 99501 Re: West Foreland #1 ("WF #1") Well; Well Spacing Application for Pennanent Exemption to Provisions of20 AAC 25.055; Federal Lease (A-0350l7); State Lease (ADL-359112) Alaska Oil and Gas Conservation Commission Conservation Orders Nos. 450 & 450-A Compensatory Royalty Agreement Final Allocation of Reserves & Production Dear Commissioner Palin: ill support of the referenced Conservation Orders and the requests submitted by Forest Oil Corporation ("Forest"), received by the Alaska Conservation Commission ("AOGCC") June 16,2003, and in response to the public notices published by the AOGCC regardmg the hearing with the AOGCC tentatively scheduled for August 14,2003, Forest hereby provides the following documentation: 1. July 14,2003 letter, with attachments, from Forest to the Bureau of Land Management ("BLM") & the Alaska Department of Natural Resources ("ADNR") RE: Final Allocation of Gas Production from West Foreland #1 well 2. Copy of July 14, 2003 letter signed by the BLM concurring with 58%/42% Final Allocation 3. Copy of July 14, 2003 letter signed by the ADNR concurring with 58%/42% Final Allocation 4. Personal Notice, with attached distribution list of ADL 359112 & A-035017 Royalty Owners 5 . West Forelands Area Lease Map 6. Table Listing Mineral illterest Owners Offsetting WF #1 By evidence of my signature below, I hereby verify that I am acquainted with the facts sUITounding this matter and that the facts presented in Forest's application and this letter, including the attachments, are true and correctly portray all pertinent and required data as defined in 20 AAC 25.055. I further certify that a copy of the Personal Notice was sent by Forest by certified mail to all royalty owners listed in the distribution list attached thereto, as well as to those parties shown copied with this letter. Forest hereby provides permission to provide copies of the attachments to document #1 above to any of the mineral interest and royalty owners of ADL 359112 & A-035017 who ask for copies prior to the AOGCC rendering a decision in this matter. If there are any questions regarding this matter, please contact me at (907) 258-8600. Sincerely yours, FOREST OIL 9J' Ar... I' 1m mgton Land Manager, Alaska Business Unit J! IL 2; § í'G¡î3 ~,..' . . 'J .-- .) lJ ,. Cc (wi attachments except document #1): BLM, ADNR, Cook Inlet Region, Inc. Page 1 of 1 #8 ( ( Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 July 14, 2003 Mr. Steve Martinez US Department of the Interior Bureau of Land Management 222 West 7tÌ1 Avenue, # 13 Anchorage, AK 99513 Mr. Chris Ruff State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7tÌ1 Avenue, Suite 800 Anchorage,AK 99501 RE: Final Allocation of Gas Production from West Foreland #1 well Dear Mr. Martinez and Mr. Ruff: Forest Oil Corporation ("Forest") appreciates you meeting with us on May 15th, as required by the Compensatory Royalty Agreement ("CRA"), effective April 1, 2001, executed by and between the Bureau of Land Management (ELM), the Alaska Department of Natural Resources (ADNR) and Forest. As you know, the CRA required "the United States, the State and the Lessee" to meet "and attempt to agree on the Final Allocation using all data then available to them" at the conclusion of two years plus sixty days after Start of Production. Forest understands, that based on the data presented and discussed at that meeting, and subsequent thereto, we are able at this time to agree upon a Final Allocation, as defined in the CRA, of gas production from the West Foreland #1 well from any interval not deeper than 9,527' to the State Lease (ADL 359111) and Federal Lease (A-035017). Therefore, this letter is sent to evidence our agreement on the Final Allocation pursuant to the CRA. Recommendation: After reviewing the geologic data associated with the West Foreland Field (seismic data, structure mapping, and the WF # 1 well logs ), incorporating the latest reservoir pressure data gathered from the WF # 1 well, along with the corresponding cumulative gas production ITom the 9200' sand, and increasing the original gas in place (OGIP) estimate from 7.4 Bcfto 8.32 Bcf (for the 9200' sand only), Forest recommends that West Foreland Field gas produced from the WF #1 well in the two producing zones be allocated 58% to the Federal Lease and 42% to the State Lease. The basis for this allocation is the P/Z volumetric estimate for the 9200' Sand and the mapped volumetric estimate for the 9400' Sand, both of which indicate a 58/42 split. This recommendation is based upon the best available estimates of gas reserves on this structure. I have attached a confidential memorandum ITom Forest's reservoir engineer Paul M. Winslow to support this recommendation. Alaska Oil and Gas Conservation Commission Hearin!!: As you know, Conservation Order No. 450, issued by the Alaska Oil and Gas Conservation Commission ("AOGCC"), provides that if the CRA, previously provided to the AOGCC, "is executed by fewer 1( ( than all royalty owners in both leases, the Commission will first provide royalty owners with an opportunity to be heard (after personal notice served by Forcenergy [Forest's predecessor in interest]) on the disposition of the escrowed funds as between the two leases and on the termination of Forcenergy's escrow obligation". The AOGCC has scheduled a hearing for August 14,2003, at 9:00 am at the AOGCC offices to act upon the request by Forest (1) to make pennanent the existing temporary well spacing exception for the West Foreland #1 well; and (2) to approve an allocation of production fTom the West Foreland #1 well of 58% to lease A-035017 and 42% to lease ADL 359112. If the AOGCC approves those requests, Forest will then request the AOGCC to (1) approve the Final Allocation, (2) approve the distribution of the escrowed funds and (3) terminate Forest's escrow obligation pursuant to the CRA and the Final Allocation agreed to by the parties to the CRA. Final Allocation Approval: If you agree, pursuant to the CRA, with the Final Allocation recommended by Forest of 58% to lease A-035017 and 42% to lease ADL-359112 of all gas reserves producible fTom any interval not deeper than 9,527' ITom the West Foreland #1 well, please signify such concurrence by having an authorized representative sign where indicated below and return an executed copy to my attention. Please call me at (907) 868-2112 with any questions or concerns regarding this transmittal. Sincerely, FOREST OIL CORPORATION l:-~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources ("ADNR'') and Bureau of Land Management ("BLM'') hereby each provides its concurrence to Forest's recommended Final Allocation, pursuant to that certain Compensatory Royalty Agreement effective April 1, 2001, of gas reserves producible from any interval not deeper than 9,527'from the West Foreland #1 well as proposed by Forest in its letter dated June 14,2003. The signature of both ADNR and BLM below shall evidence agreement of all parties to the CRA of the Final Allocation. ADNR: Date: (Signature) Name: Title: BLM: Date: (Signature) Name: Title: Attachment: Memorandum, with attachments, ITom Paul M. Winslow #7 /r;', r:¡-;.-¡ ,'7\ ~? ~ ~..... ~ I '" \ ¡I ¡ ¡ ". \ \ ! ¡ \ \ \ ! ~ \ '\ ¡ ./ \ \ ' n.' I \, ! ,-.., \ ¡\ L\ ~) U Li U Ll .~ ( rml~ ~) u rï\ n r-\ (nJ r1n" 1\ ¡ [\ '\ '\ II / 1\ \ \~ '\ / (' / f\ \ I \ IL", ~ 1,1 f ;-.-:. \ I. ! - \ :' '\ \ I \ \ ! ;::~~ \ Lf U L!:::i U \..J '~":) LJ \i u u FRANK H. MURKOWSKI, GOVERNOR ATtASIiA OIL AND GAS CONSERVATION COMMISSION 333 W. ]TH AVENUE. SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 July 17,2003 Jim Arlington Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 Re: West Foreland # 1 well Spacing Exception, West Foreland Field Dear Mr. Arlington: The Alaska Oil and Gas Conservation Commission approves the request of Forest Oil Corporation to extend the temporary spacing exception for the above-referenced well until the time that the Commission issues its order approving an allocation of production between the affected leases and providing for disbursement of funds from the escrow account that is required under Conservation Orders Nos. 450 and 450-A. This extension is effective as of July 1, 2003. As you know, the escrow requirements relating to production from the West Foreland # 1 well, as well as other applicable provisions of Conservation Orders Nos. 450 and 450-A, will continue in effect under this extension. This extension is conditioned on Forest Oil Corporation's prompt perfonnance of its obligation to provide timely personal notice to affected royalty owners of their opportunity to be heard in connection with the proposed allocation of production and disbursement of escrow funds. Sincerely~_-'. - / n // C:;;;-Ul-/Lf-~ ' Sarah Palin Chair Sincerely, ~ L..k--~ Randy Ruedrich Commissioner #7 (' ALASKA OIL & GAS CONSERVATION COMMISSION FAX 907-276-7542 PHONE 907-279-1433 FACSJMJLE TRANSMITTAL SHEET. FAX NUMBER: FROM'[)~ DA= 7)2;;"3 -~ TOTAL NO..OF PAGES INCLUDING COVER: I I SENDER'S REFERENCE NUMBER: ~~ OM"ANY, ~ PHONE NUMBER: RE: YOUR REFERENCE NUMBER: 0 URGENT 0 FOR REVIEW 0 PLEASE.. COMMENT 0 PLEASE REPLY 0 PLEASE RECYCLE NOTES/COMMENTS: ;l7q~g=-~ ~V AOGCC 333 WEST 7TH AVENUE, SUITE 100 ANCHORAGE, AK 99501-3935 " ~ Amended Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West Foreland #1 Well West Foreland Field This notice amends and supplements a previously issued notice, published on June 19, 2003, relating to a request by Forest Oil Corporation (1) to make permanent the existing temporary well spacing exception for the West Foreland #1; and (2) to approve an allocation of production from the West Foreland #1 well. The proposed allocation to lease A-035017 has been changed from 57% to 58% and the proposed allocation to lease ADL 359112 has been changed from 43% to 42%. The Commission has also changed the tentative date for a public hearing on this application from July 25, 2003, to August 14, 2003, at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ihAvenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 21, 2003. To learn if the Commission will hold the public hearing, please call 793-1221 or check the Commission's hearing calendar at http://www.state.ak.us/locallakpages/ADMIN/ogc/hear/hear.htm In addition, the deadline for submission of written comments regarding this application has been changed from July 20, 2003, to August 4, 2003, at 4:30 p.m., except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on August 14,2003. 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 Jody Colombie at 793-1221 before August 6, 2003. ~ ~.~ Randy~edriCh Commissioner Published: July 3,2003 AO # 02414001 /$lL_~\'{~,;,...... ~~~~;l ~,"i , ~;~);j,':'t/:~t! '- ~ Forest Oil Corporation 310 K Street, Sužte 700 Anchorage, Alaslm 99501 (907) 258-8600 Fax: (907) 258-8601 RECErVED JUN 3 0 2003 Alaska Oil & Gas Cons. Commission Anchorage June 30, 2003 Ms. Sarah Palin, Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 HAND-DELIVERED RE: West Foreland #1 (WF #1) well; West Foreland Field AOGCC Conservation Orders Nos. 450 and 450-A Dear Ms. Palin: Pursuant to your letter to me dated June 23, 2003 on the referenced subject, Forest Oil Corporation ("Forest") is transmitting herewith written original signatures ITom DNR and BLM evidencing their consent and non-objection to Forest's request for a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ("AOGCC"). Forest vel)' much appreciates your accommodation regarding this request. In regards to the public hearing the AOGC has tentatively set for July 25,2003, at 9:00 a.m. (to consider Forest's application that the AOGCC approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112), I have just this morning been provided a slightly revised allocation reconnnendation of 58 percent to lease A-035017 and 42 percent to lease ADL 359112. This revision is a result of the latest reservoir pressure and cumulative production data increasing the OGIP volume and pushing the zero contour line on the net pay isopach map further down-dip. Will this revised proposed allocation require a new public hearing notice to be issued and consequently a new hearing date? You should know that Forest plans to present all data to the AOGCC it used to derive its proposed allocation of production and to present all such data at the public hearing. Because Forest must provide all royalty owners personal notice of the hearing and their opportunity to be heard regarding disposition of the escrowed finds as between the two leases, Forest needs to know what hearing date to include in such notice as soon as possible. I look forward to receiving your direction regarding the hearing date at your earliest convenience. Please fell free to call me at (907) 868-2112 with any questions or concerns regarding this matter. Sincerely, FOREST OIL CORPORATION ¡;..,d~~~ Jim Arlington Land Manager-Alaska Business Unit Attachments: June 26, 2003 letter ITom Forest requesting consents; original consent signed by BLM June 26, 2003 letter ITom Forest requesting consents; original consent signed by DNR Cc: Steve Martinez (BLM), Chris Ruff (DNR), Gary Carlson Page 1 of 1 t!l;:,:íL)~'~¡~!ii'~1 'i,:.,~~,'.'<,_I~, ',,' I, 't, \,~': ~ k' ,~' "",. .l~'" 'I~I~:II' A"." ~~~~'~J~tJk01';'~~": ~ ~ Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 Mr. Steve Martinez US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507 Faxed To: (907) 267-1304 Mr. Chris Ruff State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Avenue, Suite 800 Anchorage, AK 99501 Faxed To: (907) 269-8938 RECEfVED JUN 3 0 7003 Alaska Oil & G ~ C a.. oos. Commission Anchorage Jillle 26, 2003 RE: West Foreland #1 (WF #1) well; West Foreland Field Dear Mr. Martinez and Mr. Ruff: Pursuant to our discussions, Forest Oil Corporation ("Forest") is sending you this letter to request your consent and non- objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ("AOGCC") for the referenced well in AOGCC Conservation Orders Nos. 450 and 450-A. The AOGC has tentatively set a public hearing for July 25, 2003, at 9:00 a.m to consider Forest's application (1) that the temporary well spacing exception for the West Foreland #1 well that was granted in Conservation Orders Nos. 450 and 450- A be made pennanent; and (2) that the AOGCC approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. However, because the temporary spacing exception granted by the AOGCC expires July 1, 2003, the AOGCC needs to approve an extension of the temporary spacing exception until it acts on Forest's request to make it pennanent. The AOGCC has agreed that written statements from DNR and BLM signifying their consent or non-objection to the requested extension will be considered substantial compliance with their procedures for notice and opportunity for hearing. Therefore, please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to the AOGCC. Please call me at (907) 868-2112 with any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION p.:-.d~&:~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas (tlDNR'J and Bureau of Land Management ("BLM'? hereby each provides its consent and non-objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ('~OGCC'? in AOGCC Conservation Orders Nos. 450 and 4SD-A until the AOGCC acts on Forest's request to make it permanent. DNR: Date: (Signature) Name: BLM:~~/fJ:rJ (Signature) "'^ Name: Lv ,'1l,'Q."1 'R. J.J/e ( Title: Date: ~ / ;¿ 7 Þ 3 Ti"e:a"e{ Bh:tkC~ ot f5'..e,.,'1 (ad,''''J Page 1 of 1 f;1~~~~; ~>wr) ~~f~' .€~~-~,:f~"" ~ (.., Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 June 26, 2003 Mr. Steve Martinez US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507 Faxed To: (907) 267-1304 Mr. Chris Ruff State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 71h Avenue, Suite 800 Anchorage, AK 99501 Faxed To: (907) 269-8938 RE: West Foreland #1 (WF #1) well; West Foreland Field Dear Mr. Martinez and Mr. Ruff: Pursuant to our discussions, Forest Oil Corporation ("Forest") is sending you this letter to request your consent and non- objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas ConseIVation Commission ("AOGCC") for the referenced well in AOGCC ConseIVation Orders Nos. 450 and 450-A. The AOGC has tentatively set a public hearing for July 25,2003, at 9:00 a.m. to consider Forest's application (1) that the temporary well spacing exception for the West Foreland #1 well that was granted in ConseIVation Orders Nos. 450 and 450- A be made permanent; and (2) that the AOGCC approve an allocation of production ftom the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. However, because the temporary spacing exception granted by the AOGCC expires July 1, 2003, the AOGCC needs to approve an extension of the temporary spacing exception ootil it acts on Forest's request to make it penmnent. The AOGCC has agreed that written statements ftom DNR and BLM signifying their consent or non-objection to the requested extension will be considered substantial compliance with their procedures for notice and opportunity for hearing. Therefore, please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to the AOGCC. Please call me at (907) 868-2112 with any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION ¡~~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas (IIDNR'') and Bureau of Land Management (IIBLM'') hereby each provides its consent and non-objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission t~OGCC'') in AOGCC Conservation Orders Nos. 450 and 450-A until the AOGCC acts on Forest's request to ma e it permanent. DNR: " L Name: t /¡ ~r:-k" BLM: Date: tl~¿,]O 2Có3 I Title: !~~&~I<¡/I~£Y Date: (Signature) Name: Title: Page 1 of 1 8 ~ FOREST OIL '-' CORPORATION .J-IO C/(Ç'YÎrep( - C9;alp. 700 G9fJlr/u)/raf/p, QR'//oJka .9.9501 (.907) .;J.iS-S6'OO . (907) :t:i/l-SCOI (OÞa.l) July 16, 2003 Sarah Palin, Chair Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 HAND-DELIVERED Attention: Jody Colombie Re: West Foreland #1 well; West Foreland Field; Conservation Order No. 450 & 450-A Dear Commissioner Palin: As a result of my recent telephone conversations with your staff, Forest Oil Corporation ("Forest") understands that the next hearing date available to consider the issues addressed in the referenced conservation orders is July 25, 2003. However, the temporary spacing exception granted pursuant to Conservation Order 450-A expires July 1, 2003. Therefore, Forest respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") extend the temporary spacing exception for the West Foreland #1 ("WF #1") well and schedule a hearing on July 25, 2003 pursuant to Conservation Order 450 and Conservation Order 450-A. At the July 25th hearing Forest will provide the AOGCC geologic and geophysical data and the results of production data gathered during the last two years to support a reasonable inference that proportions of the gas reserves producible from each accumulation down to 9,527 feet MD should be allocated 57% to Lease A-035017 and 43% to Lease ADL-359112. Forest has recently met with the DNR and the BLM, pursuant to that certain Compensatory Royalty Agreement ("CRA") effective April 1, 2001, and all parties thereto have verbally agreed upon this allocation for the Subject Gas for the Federal Lease and the State Lease. However, since Conservation Order 450 requires that "all royalty owners", including the overriding royalty owners, in both leases be provided an opportunity to be heard by the AOGCC if a Final Allocation agreement is not signed by the approximately 50 royalty owners, and Forest is not optimistic that it can obtain such an agreement in a timely manner, Forest respectfully requests that the AOGCC schedule the July 25th hearing for all royalty owners to be heard regarding the Final Allocation of production from the two leases. Further, Forest requests that the temporary spacing exception be extended until the AOGCC issues a finding subsequent to the July 25th hearing approving a Final Allocation and orders the funds in the CRA Escrow Account to be disbursed. Forest requests that, if the data supports such a finding following the hearing on July 25th and no protests to this application are received, the AOGCC convert the temporary spacing exception for the WF #1 well to a permanent spacing exception for the currently producing intervals. Forest will provide personal notice to all royalty owners that they will have the opportunity to be heard at the July 25th AOGCC hearing regarding the proposed Final Allocation of production from the two leases and application for permanent spacing exception for the WF #1 well. If you have any questions regarding this letter, please feel free to call me at 868-2112. Sincerely, FOREST OIL CORPORATION 2? M:gton Land Manager - Alaska Business Unit t J, tI : r~ 'IF [iì IF r L r~I) [I ~ I, \ [-I r¡;\ C~-LJ \['1/7 íE\ ) ~\\ \ \ ! L} \ I \ \ r \ I \ ~ I D \ Ii! LJ \ \ Jl\\ , - \, l. r u,l ¡ i 1/1\ \. ¡ I' ,L., \ U,) l'_!,. ¡ {ì \ L~ Lrù n__),., \~ U-tJ '--... LJ b. .... t.. '----'~. ....J U I.....:: .J FRANK H. MURKOWSKI, GOVERNOR A....A.~KA. OIL AND GAS CONSERVATION COMMISSION 333 W. 7rH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 June 23, 2003 Jim Arlington Forest Oil Corporation 310 K Street, Suite 700 Anchorage AK 99501 Re: West Foreland # 1 well, West Foreland Field Dear Mr. Arlington: As you know, in response to your letter of June 16, 2003, the Commission has tentatively scheduled a hearing on July 25, 2003, to consider making the temporary spacing exception for the above-referenced well permanent and approving an allocation of production between the affected leases. Your letter also requested that the Commission extend the temporary spacing exception that expires July 1, 2003, until the time that the Commission issues its order approving the allocation and providing for disbursement of funds from the escrow account that is required under Conservation Orders Nos. 450 and 450-A. The procedures for granting spacing exceptions include public notice and opportunity for hearing. In the past the Commission has considered that thesè procedures also apply to the extension of a previously granted temporary exception, as occulTed in Conservation Order No. 450-A. It is regrettable that your current application was not submitted in time to allow for the notice and hearing process to be completed before the temporary exception is due to expire. Please ensure that future applications for Commission action take adequate account of the time required for orderly compliance with applicable administrative procedures. In this instance, the escrow arrangements relating to production from the West Foreland # 1 well, which will continue in effect under the requested extension, should protect the interests of those who might be affected by an extension of the temporary spacing exception. In addition, you have indicated that the parties that are entitled to personal notice under 20 AAC 25.055(d), namely the Department of Natural Resources ("DNR") and the Bureau of Land Management . .. ~ West Foreland # 1 weL.st Foreland Field June 23, 2003 Page 2 of2 ~. ("BLM"), consent to the requested extension. Accordingly, if you submit to the Commission written statements from DNR and BLM signifying their consent or non-objection to the requested extension, the Commission will consider that substantial compliance has been performed with respect to the applicable procedures for notice and opportunity for hearing as to the request for an extension of the temporary spacing exception. These statements should be submitted as soon as possible but in no event later than June 30, 2003. Sincerel~, '.. O. . - ) 1:7 ~ ç2~¡)_Æ/\\/~ _.// / ~ arab H. Palin Chair cc: Mr. Gary Carlson Vice President Forest Oil Corporation ~ «.J Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West Foreland # 1 Well West Foreland Field Forest Oil Corporation by letter received June 16, 2003, has requested (1) that the temporary well spacing exception for the West Foreland # 1 well that was granted in Conservation Orders Nos. 450 and 450-A be made permanent; and (2) that the Alaska Oil and Gas Conservation Commission approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. Upon approval of an allocation of production, the Commission will order disbursement of the funds in the escrow account that was established pursuant to Conservation Order No. 450. The Commission has tentatively set a public hearing on this application for July 25, 2003, at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 7,2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 or check the Commission's hearing calendar at http://www.state.ak.us/local/akpages/ADMIN/ogc/hear/hear.htm , In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on July 20, 2003, except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on July 25,2003. If you are a person with a disability who may need a special modification in order to comn1ent or to attend the public hearing, please contact Jody Colombie at 793-1221 before July 15, 2003. c:~~~-- Sarah Palin" Chair ..//..., ) C,,-I / I ,/ .,...' ..'" . ~ê~_- / ~ \.,;, FOREST 0 I L (~ CORPORATION ,f/t! ç)(¿YlrN'¡ - CYu(le JO(> cC'l;I('Irr:n~(/r. cC//a.jla .Sl. fJ.j r>¡ (,1)(;) /;,,-.\(}'(( . (.9(.;) fi,\-Sfj'( / (~~(u) July 16, 2003 Sarah Palin, Chair Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 RE(~~:E:fV~=D HAND-DELIVERED ..1UN 1 6 2003 Attention: Jody Colombie Alaska Œ¡ &: Gfì$ Corn;. CŒì1mission A.'x:hc;,'õœ ..) Re: West Foreland #1 well; West Foreland Field; Conservation Order No. 450 & 450-A Dear Commissioner Palin: As a result of my recent telephone conversations with your staff, Forest Oil Corporation ("Forest") understands that the next hearing date available to consider the issues addressed in the referenced conservation orders is July 25, 2003. However, the temporary spacing exception granted pursuant to Conservation Order 450-A expires July 1, 2003. Therefore, Forest respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") extend the temporary spacing exception for the West Foreland #1 ("WF #1 ") well and schedule a hearing on July 25, 2003 pursuant to Conservation Order 450 and Conservation Order 450-A. At the July 25th hearing Forest will provide the AOGCC geologic and geophysical data and the results of production data gathered during the last two years to support a reasonable inference that proportions of the gas reserves producible from each accumulation down to 9,527 feet MD should be allocated 57% to Lease A-035017 and 43% to Lease ADL-359112. Forest has recently met with the DNR and the BLM, pursuant to that certain Compensatory Royalty Agreement ("CRA") effective April 1, 2001, and all parties thereto have verbally agreed upon this allocation for the Subject Gas for the Federal Lease and the State Lease. However, since Conservation Order 450 requires that "all royalty owners", including the overriding royalty owners, in both leases be provided an opportunity to be heard by the AOGCC if a Final Allocation agreement is not signed by the approximately 50 royalty owners, and Forest is not optimistic that it can obtain such an agreement in a timely manner, Forest respectfully requests that the AOGCC schedule the July 25th hearing for all royalty owners to be heard regarding the Final Allocation of production from the two leases. Further, Forest requests that the temporary spacing exception be extended until the AOGCC issues a finding subsequent to the July 25th hearing approving a Final Allocation and orders the funds in the CRA Escrow Account to be disbursed. Forest requests that, if the data supports such a finding following the hearing on July 25th and no protests to this application are received, the AOGCC convert the temporary spacing exception for the WF #1 well to a permanent spacing exception for the currently producing intervals. Forest will provide personal notice to all royalty owners that they will have the opportunity to be heard at the July 25th AOGCC hearing regarding the proposed Final Allocation of production from the two leases and application for permanent spacing exception for the WF #1 well. If you have any questions regarding this letter, please feel free to call me at 868-2112. Sincerely, FOREST OIL CORPORATION 2Arli:9ton Land Manager - Alaska Business Unit CO 450A W~tforeland Gas Field Spacing ExcePti°\w (J Subject: CO 450A Westforeland Gas Field Spacing Exception Date: Mon, 16 Jun 2003 09:51 :39 -0800 From: Jack Hartz <jack_hartz@admin.state.ak.us> To: Sarah H Palin <sarahyalin@admin.state.ak.us>, Daniel T Seamount JR <dan_seamount@admin.state.ak.us>, Randy Ruedrich <randy - ruedrich@admin.state.ak. us> cc: Jody Colombie <jody_colombie@admin.state.ak.us>, Stephen F Davies <steve - davies@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us> Jim Arlington spoke to Jody and I this morning about items related to CO 450A. Summary 1. Forest has corne to agreement with BLM and DNR on Production Allocation methods for Westforeland gas. 2. Apparently not all interest owners have signed of on the agreement for the Production Allocation method. He said there were 50-60 interests including overriding royalty interests that have to corne to agreement. 3. Forest wants a hearing so parties can argue for or against the allocation method. 4. Forest will need an extension to 450A spacing exception to cover the merits of the allocation method can production (or whatever disposition is issued. 5. There may. be some confidentiallity issues associated with the volumetrics and underlying reservoir and geologic data associated with the Production Allocation method the 7/1/2003 deadline for the CO period untilla hearing on the be completed and an order allowing is appropriate) from the gas field Action Items in progress 1. Jody has put a hearing on the calendar for 7/25. 2. Forest (Arlington) is sending a letter today requesting the hearing and extension. Jack r::. . ¡....................................."....................................."""""""""''''''''''''''-''.''''''''''.'''''.''''''''''''''-'''''''".""'.""'---"""'-""-"'-.'--'.'-'-'.-"1 I Jack Hartz <lack hartz(QJ,admin.state.ak.us> I 'I Sr. Reservoir Engineer .~I~sk~~il..~ Gas Conservation Commission I of I 6/17/20034:29 PM #6 STATE OF ALASKA NOTICE TO PUBLISHER ¡:" ADVERTISING ORDER NO. IN"( ( ADVERTISING ....1UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER I, ÆRTIFIED AO-02414001 ORDER AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CO NT ACT DATE OF A.D. R 333 W 7th Ave, Ste 100 Jodv Colombie Julv 1. 2003 0 Anchorage, AK 99501 PHONE PCN M - (Q07) 793 -1 ?? 1 DATES ADVERTISEMEì'iT REQUIRED: T Anchorage Daily News July 3,2003 0 POBox 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE ATTACHED ~~~;_~;m~ø~'1 AOGCC, 333 W. 7th Ave., Suite 100 I I TOTAL OF ;1 PAGE 1 OF ALL PAGES$ ,," ',,"..',"'" ,.."1"0",,, '. ""., "",""., ,"'." Anchorage, AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LlQ 1 04 02140100 73540 2 3 4 REQUlSITION~ 0~\ /~~- ID'i~OV~4lA '~ . '~~A ( )- ./ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM (' Anchorage Daily News Affidavit of Publication ( 7/3/2003 1001 Northway Drive, Anchorage. AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 860158 07/æ/2003 AO-02414 STOF0330 $149.46 $149.46 $5.00 $0.00 $0.00 $0.00 $0.00 $154.46 Signed Amended Notice of Public Hearing , STATE OF ALASKA , Alaska Oil and Gas Conservation Commission Re' West Foreland #1 Well . West Foreland Field This notice amends and, supplements 0 previ- ouslY issued notice, published 9n June 19,.2003, re- lating to 0 request by Forest 011 Corporation (1) to make permanent the éxistlng temporar~ we~1 tf>a;- Ing exception for the West Foreland #1, on W ~ rove on allocation of production from the, ,es F~~eland #l well. The proposedallo~ation t~ lease A-035017 has been changed from 57 Yo to 58 ¥o and the proposed allocation to lease AD!,. 359112 has been changed from 43% to 42%. The Commlssion'has' also changed the.tenta,- ¡tive" date for. ~ - ::;ôc:::. !"~~~:'1.g. on~ ~~IS, o~.~.I,~c.?tIO~ ,from July 25, ..'.~ ':,~' ..'.'." ,~. ~v.::,..C,I, :.,~~,.. ""~'En the AlQska Oi : .:! '..':.!' ..~r'~.r...1 ... ,:,(, ,.1...51 at 333West'"'" -'.. ",.' ~:U'_H' 1~I:j, :~~~'Ir,~~agte: Alaska 99501. !. :;,'.,~;;.. 'I:::',' r..~..C~, tll..~ ,If -an a tlvelY schedV::~ ".;::','' !:.' ",...':: ::)": t.\ :1; ~.w~13to- t uest W;õr; ~,~.¡ ::.,'I'.::':I!i>;;I::I'~ "':: :;I,l'r tr.! 4, :~~enq J uly'21, 200~.To learn If the,Cømmlsslon will hold the, public hearing, please caU 793-1221 o~ checktheColnn'\ission'shearlng calendar 0 http ;llwww ~state. a,k. us/loca lIakpagesl ADM I N/ogc/h "eor/l1ear,htm , " '.'I'noddltion, the deadline for sub.mis.sionof written comments regarding this application h~S been changed from July 20,2003, to August ~, 20d ' at 4'30 p m except that if the'Commlsslon e- cides to hold' 0 public hearing, written comments must be received no later than 9:00 om on August 14,2003. . If youdre 0 person with 0 disability who may need a speciql mod,ification in order to comme,nt o,r to,atfend ttie publicheari.ng, please contact Jody Colòmbieat 793-1221before,August 6, 2003. , , . RandY Ruedrich' Commissioner STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Tlùrd 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 the above dates 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 ~~efore this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska puPI,iShèd: July 3:,20P3:,',; \,,0.0#02414001 ;'" :',' I.~ (I: \,\ ~E s. I'~ \" ~. . . . . :..t..~ ~ !ib .. .-- .. "iJI''''' ~~:. 01AR~.. ~ ... . ~ .-- .- ...... . . ....... ....:.. ~"r. . - - . ~ .,-. :: . /. ~ - i. . _.- . ~ ~~. ~~Of ~ . ~ ::.~~ ~ . . .. ~,\\ /./.1 ~" I.I))}J TJ)))) \ \ ( Amended Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West Foreland # 1 Well West Foreland Field This notice amends and supplements a previously issued notice, published on June 19, 2003, relating to a request by Forest Oil Corporation (1) to make permanent the existing temporary well spacing exception for the West Foreland #1; and (2) to approve an allocation of production from the West Foreland # 1 well. The proposed allocation to lease A-035017 has been changed from 570/0 to 58°1<> and the proposed allocation to lease ADL 359112 has been changed from 430/0 to 42%. The Commission has also changed the tentative date for a public hearing on this application from July 25, 2003, to August 14, 2003, at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 21, 2003. To learn if the Commission will hold the public hearing, please call 793-1221 or check the Commission's hearing calendar at http://www.state.ak.us/locallakpages/ADMIN/ogc/hear/hear.htm In addition, the deadline for submission of written comments regarding this application has been changed from July 20, 2003, to August 4, 2003, at 4:30 p.m., except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on August 14,2003. 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 Jody Colombie at 793-1221 before August 6, 2003. ß- ~.~ Randy~edriCh Commissioner Published: July 3, 2003 AO # 02414001 RE: Notice Subject: RE: Notice Date: Tue, 1 Jul 2003 10:36:32 -0800 From: "legalads" <legalads@adn.com> To: "Jody Colombie" <jody - colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 860158 Publication Date(s): July 3,2003 Your Reference or PO#: AO-02414001 Cost of Legal Notice: $149.46 Additional Charges Web Link: E-Mail Link: Bolding: $5.00 Total Cost to Place Legal Notice: $154.46 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 ---------- From: Jody Colombie Sent: Tuesday, July 1, 2003 9:03 AM To: legalads Subject: Notice «File: West Foreland Amended.doc»«File: Ad Order form.doc»«File: iodv colombie.vef» Please publish 7/3/03. 1 of 1 7/1/2003 10:36 AM STATE OF ALASKA ADVERTISING ORDER , SEE BOTTOM FOR INVOICE .ADDRESS I" . NOTICE TO PUBLISHER I~:" ADVERTISING ORDER NO. IN~ Iv1UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER\ -':ERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF A 0-02414001 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West ih Avenue, Suite 100 0 Anchorage, AK 99501 M 907-793-1221 AGENCY CONTACT DATE OF A.D. DATES ADVERTISEMENT REQUIRED: T 0 Anchorage Daily News POBox 149001 Anchorage, AK 99514 July 3,2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRlJCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for - consecutive days, the last publication appearing on the - day of . 2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2003, Notary public for state of My commission expires 02-90 I (Rev. 3/94) Page 2 AO.FRM PUBLISHER Amended Notice I( Subject: Amended Notice Date: Tue, 01 Jul 2003 09:06: 11 -0800 From: J ody Colombie <jody - colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission BCC: Robert E Mintz <robert- mintz@law.state.ak.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubblet1@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <j darlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly@conocophillips.com>, "mark. p. worcester" <mark. p. worcester@conocophillips.com>, "j erry .c. dethlefs" <j erry.c.dethlefs@conocophillips.com> , arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, burgin - d <burgin - d@niediak.com>, "charles.o 'donnell" <charles.o'donnell@veco.com>, "Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <Mikel. Schultz@BP .com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <PlattJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins - mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barb ara. f. fullmer" <barb ara. f. fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmai1.com>, doug_schultze <doug- schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobil.com>, yesnol <yesnol@gci.net>, "john. w .hanes" <john. w .hanes@exxonmobil.com>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shel1.com>, "fred. steece" <fred. steece@state.sd. us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>, "j ames.m.ruud" <j ames.m.ruud@conocophillips.com> illJ\Vest Foreland Amended.doc Name: West Foreland Amended.doc Type: WI.NWORD File (application/ms\vord) base64 lof2 711 /20039:06 AM Amended Notice ( ,~' \ ~ombie <iodv colombie(a)admin.state.ak.us> I 20f2 7/1 /20039:06 AM Notice Subject: Notice Date: Tue, 01 Jul2003 09:05:39 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: jill_daniels@admin.state.ak.us, CYnthia B Mciver <bren_mciver@admin.state.ak.us> Please publish. Jody r Name: West Foreland Amended.doc .....œg.~~.',.....west Foreland Amended.dOC.... Type: WINWORD File (apPlication/mswor.d....). Encoding: base64 . ,', . .".. '"'' ,. ."",,,,, no,..,,, "" "'" ",. , "" ",,,.. Jody Colombie <lody colombie@admin.state.ak.us> I of I 7/1 /2003 9:06 AM Notice ,{ ( Subject: Notice Date: Tue, 01 Jul 2003 09:03 :33 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish 7/3/03. Name: West Foreland Amended.doc œJWest Foreland Amended.doc Type: WINWORD File (application/msword) Encoding: base64 . ....~. '..".'", ~""'''~'.'''' ' ~ ,.. "~"",,.. .. " ,- ., ...._.~"~". ~., "'~..""'" ".". ,"''''"'''''.''~'' ,_............~~._"...._......-......~-"......~-_......._.............__.....",........._~~" .",",_............".~,.-....~"",",..._.",".~,..."....,,~ "". "'...m_.".." ."... ~....."",."" "......,..".' """'" i ¡ I ¡ , Name: Ad Order form.doc ~Ad Order form.doc Type: WINWORD File (applicationlmsword) Encoding: base64 Jody Colombie <iody colombie@admin.state.ak.us> 1 of 1 7/1/20039:06 AM SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eva!. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 (( John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 John Levorsen 200 North 3rd Street, #1202 Boise,lD 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Penny Vadla Box 467 Ninilchik, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 ( Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 #5 . ;:i~j~~ .:.:..~./;;~:' '~!~". .' "1' "~'> ,,'-.r,,~rí I '!,'.'~~I\,I,\"" ,.~'.:t::.:¡J,~It:.'.,.,. ( ( Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 RECE~VED JUN 3 0 2003 Alaska Oil & Gas Cons. Com~¡ssicn Anchorage June 30, 2003 Ms. Sarah Palin, Chair Alaska Oil and Gas Conservation Commission 333 W. 71Ì1 Avenue, Suite 100 Anchorage, Alaska 99501-3539 HAND-DELIVERED RE: West Foreland #1 (WF #1) well; West Foreland Field AOGCC Conservation Orders Nos. 450 and 450-A Dear Ms. Palin: Pursuant to your letter to me dated June 23, 2003 on the referenced subject, Forest Oil Corporation ("Forest") is transmitting herewith written original signatures trom DNR and BLM evidencing their consent and non-objection to Forest's request for a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ("AOGCC"). Forest vel)' much appreciates your accommodation regarding this request. In regards to the public hearing the AOGC has tentatively set for July 25,2003, at 9:00 a.m. (to consider Forest's application that the AOGCC approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112), I have just this morning been provided a slightly revised allocation recommendation of 58 percent to lease A-035017 and 42 percent to lease ADL 359112. TIris revision is a result of the latest reservoir pressure and cumulative production data increasing the OGIP volume and pushing the zero contour line on the net pay isopach map further down-dip. Will this revised proposed allocation require a new public hearing notice to be issued and consequently a new hearing date? You should know that Forest plans to present all data to the AOGCC it used to derive its proposed allocation of production and to present all such data at the public hearing. Because Forest must provide all royalty owners personal notice of the hearing and their opportwrity to be heard regarding disposition of the escrowed finds as between the two leases, Forest needs to know what hearing date to include in such notice as soon as possible. I look forward to receiving your direction regarding the hearing date at your earliest convenience. Please fell free to call me at (907) 868-2112 with any questions or concerns regarding this matter. Sincerely, FOREST OIL CORPORATION l.:.v ~ Jim Arlington Land Manager-Alaska Business Unit Attachments: June 26, 2003 letter ITom Forest requesting consents; original consent signed by BLM June 26, 2003 letter ITom Forest requesting consents; original consent signed by DNR Cc: Steve Martinez (BLM), Chris Ruff (DNR), Gary Carlson Page 1 of 1 (' f Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 Mr. Steve Martinez US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507 Faxed To: (907) 267-1304 Mr. Chris Ruff State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7th Avenue, Suite 800 Anchorage, AK 99501 Faxed To: (907) 269-8938 R'~t:('E'\ . .... .E.= ~.J ~ ~/E: JUN 3 0 7n03 .Alaska Oil & G~s 0(1_",. C. '. ~~ l--\..~j~,~. ' am~;:7lSslcn ÄnShlJr,:HjP ~'\.J' June 26, 2003 RE: West Foreland #1 (WF #1) well; West Foreland Field Dear Mr. Martinez and Mr. Ruff: Pursuant to our discussions, Forest Oil Corporation ("Forest") is sending you this letter to request your consent and non- objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ("AOGCC") for the referenced well in AOGCC Conservation Orders Nos. 450 and 450-A. The AOGC has tentatively set a public hearing for July 25, 2003, at 9:00 a.m to consider Forest's application (1) that the temporary well spacing exception for the West Foreland #1 well that was granted in Conservation Orders Nos. 450 and 450- A be made permanent; and (2) that the AOGCC approve an allocation of production :trom the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. However, because the temporary spacing exception granted by the AOGCC expires July 1, 2003, the AOGCC needs to approve an extension of the temporary spacing exception until it acts on Forest's request to make it pennanent. The AOGCC has agreed that written statements :trom DNR and BLM signifying their consent or non-objection to the requested extension will be considered substantial compliance with their procedures for notice and opportunity for hearing. Therefore, please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to the AOGCC. Please call me at (907) 868-2112 with any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION ¡.:-- d ~/~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas ("DNR'J and Bureau of Land Management ("BLM') hereby each provides its consent and non-objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ('~OGCC') in AOGCC Conservation Orders Nos. 450 and 450-A until the AOGCC acts on Forest's request to make it permanent. DNR: Date: (Signature) Name: BLM:~/ffu (Signature) ~ Name: Lv t' ll,'a"1 R. -ü/e ( Title: Date: ~/:<?j,3 Title: Ck'e.f., Bh.t~~ <> 4 f5\ef''j '1 (ac:f""'3~ Page 1 of 1 ( ( Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 June 26, 2003 Mr. Steve Martinez US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507 Faxed To: (907) 267-1304 Mr. Chris Ruff State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 71h Avenue, Suite 800 Anchorage, AK 99501 Faxed To: (907) 269-8938 RE: West Foreland #1 (WF #1) well; West Foreland Field Dear Mr. Martinez and Mr. Ruff: Pursuant to our discussions, Forest Oil Corporation ("Forest") is sending you this letter to request your consent and non- objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ("AOGCC") for the referenced well in AOGCC Conservation Orders Nos. 450 and 450-A. The AOGC has tentatively set a public hearing for July 25,2003, at 9:00 a.m. to consider Forest's application (1) that the temporary well spacing exception for the West Foreland #1 well that was granted in Conservation Orders Nos. 450 and 450- A be made permanent; and (2) that the AOGCC approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. However, because the temporary spacing exception granted by the AOGCC expires July 1, 2003, the AOGCC needs to approve an extension of the temporary spacing exception lU1til it acts on Forest's request to make it permanent. The AOGCC has agreed that written statements from DNR and BLM signifying their consent or non-objection to the requested extension will be considered substantial compliance with their procedures for notice and opportunity for hearing. Therefore, please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to the AOGCC. Please call me at (907) 868-2112 with any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION p~~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas (ilDNR', and Bureau of Land Management ("BLM', hereby each provides its consent and non-objection to a continuance of the temporary spacing exception granted by the Alaska Oil and Gas Conservation Commission ('~OGCC" in AOGCC Conservation Orders Nos. 450 and 450-A until the AOGCC acts on Forest's request to ma e it permanent. DNR: ,1 L . Name: ¿ /¡ ~~w:~~" BLM: Date: ¡j"e]O 2c:e13 / Title: D£!e~¡q.A:7Æ!¡V Date: (Signature) Name: Title: Page 1 of 1 #4 ~.1. ¡i í~ II ftL= ~~ r~ ( /M IlLt I~ ~ [1~ fA\ QL.! U lJ\J L1 t_~ \.~/ U LrL1 L ,-. Ql) tJ ~ ò-J U { AI..ASKA OIL AM) GAS CONSERVATION COMMISSION 333 W. "JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 FRANK H. MURKOWSKI, GOVERNOR June 23, 2003 Jim Arlington Forest Oil Corporation 310 K Street, Suite 700 Anchorage AK 99501 Re: West Foreland # 1 well, West Foreland Field Dear Mr. Arlington: As you know, in response to your letter of June 16, 2003, the Commission has tentatively scheduled a hearing on July 25, 2003, to consider making the temporary spacing exception for the above-referenced well permanent and approving an allocation of production between the affected leases. Your letter also requested that the Commission extend the temporary spacing exception that expires July I, 2003, until the time that the Commission issues its order approving the allocation and providing for disbursement of funds from the escrow account that is required under Conservation Orders Nos. 450 and 450-A. The procedures for granting spacing exceptions include public notice and opportunity for hearing. In the past the Commission has considered that these procedures also apply to the extension of a previously granted temporary exception, as occulTed in Conservation Order No. 450-A. It is regrettable that your current application was not submitted in time to allow for the notice and hearing process to be completed before the temporary exception is due to expire. Please ensure that future applications for Commission action take adequate account of the time required for orderly compliance with applicable administrative procedures. In this instance, the escrow arrangements relating to production from the West Foreland # 1 well, which will continue in effect under the requested extension, should protect the interests of those who might be affected by an extension of the temporary spacing exception. In addition, you have indicated that the parties that are entitled to personal notice under 20 AAC 25.055(d), namely the Department of Natural Resources ("DNR") and the Bureau of Land Management ,1\1 West Foreland # 1 well.{ .est Foreland Field June 23, 2003 Page 2 of2 "' ¡f ("BLM"), consent to the requested extension. Accordingly, if you submit to the Commission written statements from DNR and BLM signifying their consent or non-objection to the requested extension, the Commission will consider that substantial compliance has been performed with respect to the applicable procedures for notice and opportunity for hearing as to the request for an extension of the temporary spacing exception. These statements should be submitted as soon as possible but in no event later than June 30, 2003. Sincerel:J/ Qß-" ~ Palin '\ Chair cc: Mr. Gary Carlson Vice President Forest Oil Corporation #3 ~ " \! FOREST 0 I L ( CORPORATION .j if r)(r'/(n'{'( . r';/((r/e 7ft- rr¡;rd:rl'{u/{', rr¡!a;/-r( ,f),f)/)(J/ (Iif /"': ),J.;.\-,\(;'(( . (r/()) ./,;.\-.\6'( I ('--:;;;'1') July 16, 2003 Sarah Palin, Chair Alaska Oil & Gas Conservation Commission 333 West ih Avenue, Suite 100 Anchorage, AK 99501 R [~¡" .f .~;¡ (""'-", . . ';c...., n .~ .~, c;:, ~., , ? ~~ ~ ~ \/ ~:: [~, HAND-DELIVERED . ,i1 ; f'\,' ,¡ Ie;: ? [ì rn - '" .L ,i .~ \J U ~.,' Attention: Jody Colombie Alaska C\; ¿ l;;~S LŒ1$. Cc.mn~~s¡on A iV'~'''1~ . .. ... , . .\.",,"'0., 'J Re: West Foreland #1 well; West Foreland Field; Conservation Order No. 450 & 450-A Dear Commissioner Palin: As a result of my recent telephone conversations with your staff, Forest Oil Corporation ("Forest") understands that the next hearing date available to consider the issues addressed in the referenced conservation orders is July 25, 2003. However, the temporary spacing exception granted pursuant to Conservation Order 450-A expires July 1, 2003. Therefore, Forest respectfully requests that the Alaska Oil and Gas Conservation Commission ("AOGCC") extend the temporary spacing exception for the West Foreland #1 ("WF #1") well and schedule a hearing on July 25, 2003 pursuant to Conservation Order 450 and Conservation Order 450-A. At the July 25th hearing Forest will provide the AOGCC geologic and geophysical data and the results of production data gathered during the last two years to support a reasonable inference that proportions of the gas reserves producible from each accumulation down to 9,527 feet MD should be allocated 57% to Lease A-035017 and 43% to Lease ADL-359112. Forest has recently met with the DNR and the BLM, pursuant to that certain Compensatory Royalty Agreement ("CRA") effective April 1, 2001, and all parties thereto have verbally agreed upon this allocation for the Subject Gas for the Federal Lease and the State Lease. However, since Conservation Order 450 requires that "all royalty owners", including the overriding royalty owners, in both leases be provided an opportunity to be heard by the AOGCC if a Final Allocation agreement is not signed by the approximately 50 royalty owners, and Forest is not optimistic that it can obtain such an agreement in a timely manner, Forest respectfully requests that the AOGCC schedule the July 25th hearing for all royalty owners to be heard regarding the Final Allocation of production from the two leases. Further, Forest requests that the temporary spacing exception be extended until the AOGCC issues a finding subsequent to the July 25th hearing approving a Final Allocation and orders the funds in the CRA Escrow Account to be disbursed. Forest requests that, if the data supports such a finding following the hearing on July 25th and no protests to this application are received, the AOGCC convert the temporary spacing exception for the WF #1 well to a permanent spacing exception for the currently producing intervals. Forest will provide personal notice to all royalty owners that they will have the opportunity to be heard at the July 25th AOGCC hearing regarding the proposed Final Allocation of production from the two leases and application for permanent spacing exception for the WF #1 well. If you have any questions regarding this letter, please feel free to call me at 868-2112. Sincerely, FOREST OIL CORPORATION £rli:9ton Land Manager - Alaska Business Unit #2 STATE OF ALASKA INvl NOTICE TO PUBLISHER ( ADVERTISING ORDER NO. ADVERTISING "JST BE IN TRIPLICATE SHOWING ADVERTISING ORDER t\ì......, _..RTIFIED AO-02314049 ORDER AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.D. R 333 W 7th Ave, Ste 100 Jodv Colombie June 17,2003 0 Anchorage, AK 99501 PHONE PCN M - (907) 793 -1 221 T Anchorage Daily News DATES ADVERTISEMENT REQUIRED: 0 June 19, 2003 POBox 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE ATTACHED -~~:~ AOGCC, 333 W. 7th Ave., Suite 100 I I TOTAL OF .1 PAGE 1 OF ALL PAGES$ <':;¡T9( Anchorage. AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LlQ 1 03 02140100 73540 2 3 f' 4 ,""\ ~ REQUISITIONED BY: nv\~ ~'Jf\~~ k---./ ID'V'~PROVALI"';<) /~ ~ ~¿.../..i ¿z-- '-'( V""" """ \J v/ IJ I ~ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM ( Anchorage Daily News Affidavit of Publication (' 6/19/2003 1001 Northway Drive. Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 845660 06/19/2003 02314049 STOF0330 $169.20 $169.20 $0.00 $0.00 $0.00 $0.00 $0.00 $169.20 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. Notice of Public Hearing Si~ed ~y J?} / / Subscribed and sworn to me before this date: ~~¥tZ5 '. -,' STATE OF ALASKA Alas~qOil and, Gas Conservation Comh1i$sion Re:W~~t.Foreland#l Well . West Foreland .Fleld . iÞ6r~$;t oilëorporation by letter rece 'ved June '16,20P~, r:~!, ~,-:;;,; ~ ~',,~' .., .'i::. th~,:tí~mpor'arY well $pqclng I:'.', :, "::""', :., I,' F'oreland #1 well ,thatwas granted' I n c.onservatlonorders Nos,450 '!;I'n¡:L4~0-Äbe madeper~anent';and (2)thot the :,;A,laska 011 a Jd Gas Cpnservatløn'.G:ommission 'ap- :Þro,ve anallocation ofprqductio,mfrom the West - ~':' :'r~':: ':' . , ." ::; ,i7 percent to lease A-03501? and .::: ::,"':," ':' I: ,'" A.q~ 359112;l,I.pan,approyal of :;" : ':c", ;,' :,':':iductipn, the Còmmlsslon, will ~ ~ ::':' :.~" ',:.' ,:",' '''''" oq~e funds, in, the, escrow. ac- ,(:.oU~t tha~. was establisl'1ed pursuant toConserva,- tlo",Order ,No, 450., I' " I" " ,I""., ; ," :",::11",1",,', .,,',', ',:, ,', ;,' II.,,:' "'." . . ' ',' . ¡ ',: " , \':.'Th.eÇ~..........,c:~I~.. h,,:,~ +"~+":'+lveIY set a public iheQrin~: ::' -, . ':": ':'::,' ,', .:. ,uly 25,2003, at 9:00 'am Ot'"I",,' ,,: "'~: ,,"':: :.::, :onservationCom- I missior:: - ,::: :, " : ' :',:,", Suit~ 100/Anctior- age,Algska 99501'.. A person may request thatthe tentative,l\, sc.hed'uleq, hearing .be 'held bY filing p wrltten.reQue$t with the CommÎssionnolater than 4:30, pm on ,Julv 7,2003, " '," !'If~requëstfora hearing Is ho(tit')1elv'filed, the Commissiorlwlll consider the Issuance of an order without ahearrrig. To learn if the Commission will I, . ~ol,dthe public hearing, p!~gse ca 11793-1221 or I '7100',"";'(' .101-'" :"",~."""''''.:,;þ''~-'' -:'Ioo,''.~''''!I''~' ~~:-:I~"':.':"I:-". ~'.L ~ 'f:: :.. ,~..~.",.~..:~ :.;:~: ~'('~,''':~:.':.~.: ". 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 the above dates 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. :~.~;:: I,:~ ,. .' : I': ,.. I ." I I . , , ',...: ;..:, :~',';:;:~:, ,~~:'~"7',~;~:,~,,:;~ :~-':., \;:~~\~r~r~~k~oB1i ::,:.:~t:.'" r ~ "~',. ":',-:" ::: ~>:~'::;'i" ':~: ~:'~~6 ~~~ofe~~tt~ ,ten,; c'omme Jts mustþe,r.ecelved no later than4:30 ,pm on Julv 20, 2003, except that if the Commission 'deçides to hold C\ public hearing, written com- ments must be received no Idterthqn 9:00 am on ,Julv25,2003. 'I -, , I,' " ' ,I {you are a per~onwitha, disabil\tvwhô may n,eed aspeclaJ 'l'DodificatJon in order to comment or fq at'tend the public hearing, please cqntactJOdv : Còlornble at 793-1,221 before July 15/2003:' " ' I . t 'Publish: June 19, 2003 Sarah Palin 'Chair: , ~! "i..\\( (( f. (((t: '. \\.' t...\..\E S. O~:l'rt"': .. ~r..... ....~ t"': .;., 0 .' .-. .. "''''--;. ,§'~:+O:_~Rj.:.. ~: ê : ÞuBL\C : ;-- =.-:f ..~ _.~. !": ;[5:: .- ~.:tÀ.. . If?", <'... ..:-t"'"OF ...1t-'y .1'" . . . . .' ....a \' , ,I I , J:"~~\Y-~'\ .1 J _.,.taW \' \ -"J}}}}})}), ¡ ( ( Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West Foreland # 1 Well West Foreland Field Forest Oil Corporation by letter received June 16, 2003, has requested (1) that the temporary well spacing exception for the West Foreland # 1 well that was granted in Conservation Orders Nos. 450 and 450-A be made permanent; and (2) that the Alaska Oil and Gas Conservation Commission approve an allocation of production from the West Foreland #1 well of 57 percent to lease A-035017 and 43 percent to lease ADL 359112. Upon approval of an allocation of production, the Commission will order disbursement of the funds in the escrow account that was established pursuant to Conservation Order No. 450. The Commission has tentatively set a public hearing on this application for July 25,2003, at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 7,2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 or check the Commission's hearing calendar at http://www.state.ak.us/locallakpages/ADMIN/ogc/hear/hear.htm , In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on July 20, 2003, except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on July 25, 2003. 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 Jody Colombie at 793-1221 before July 15, 2003. ¿~ Sarah Palin' Chair //--...--) 7 /~¡.... ..,.. .--'" L'/ , " ....-,,, ,of , c~--- """ STATE OF ALASKA ADVERTISING ORDER SEE BOTTO"'FOR.INVOICE ~PDRESS INVt .JST BE I~~!~~T~ SIgl~~~~~~I~~~ER{ ,RTIFIED ADVERTISING ORDER NO. AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A 0-02314049 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West ih Avenue, Suite 100 0 Anchorage,AJ( 99501 M 907-793-1221 AGENCY CONTACT DATE OF A.O. DATES ADVERTISEMENT REQUIRED: T 0 Anchorage Daily News POBox 149001 Anchorage, AK 99514 June 19, 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division, Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for - consecutive days, the last publication appearing on the - day of , 2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER RE: Notice Subject: RE: Notice Date: Wed, 18 Jun 2003 15:33:34 -0800 From: "legalads" <legalads@adn.com> To: "Jody Colombie" <jody_colombie@admin.state.ak.us> Hi Judy: Following is the confirmation information on your legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 845660 Publication Date(s): June 19,2003 Your Reference or PO#: 02314049 Cost of Legal Notice: $169.20 Additional Charges Web Link: E-Mail Link: Bolding: Total Cost to Place Legal Notice: $169.20 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 ---------- From: Jody Colombie Sent: Wednesday, June 18, 2003 1 :47 PM To: legalads Subject: Notice «File: West Foreland.doc»«File: Ad Order form.doc»«File: iodv colombie.vet» Please publish the attached. Jody 1 of 1 6/1 8/20034: 11 PM Notice of hearing ,¡' ( if Subject: Notice of hearing Date: Wed, 18 Jun 2003 08:35:30 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: CYnthia B Mciver <bren - mciver@admin.state.ak.us>, jill- daniels@admin.state.ak.us Please publish the attached notice. Jody Name: West Foreland.doc ~West Foreland.doc Type: WINWORD File (application/msword) Encoding: base64 Jody Colombie <lody coIOlnbie@admin.state.ak.us> 1 of 1 6/18/2003 8:35 AM Notice of Public Hearing ( Subject: Notice of Public Hearing Date: Wed, 18 Jun 2003 08:34:21 -0800 From: Jody Colombie <jody_colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Robert E Mintz <robert_mintz@law.state.ak.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unoca1.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>,jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dal ton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly@conocophillips.com>, "mark. p. worcester" <mark. p. worcester@conocophillips.com>, "j erry.c. dethlefs" <j erry.c.dethlefs@conocophillips.com> , arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, greg-noble <greg-noble@blm.gov>, mjnelson <mjnelson@purvingertz.com>, burgin - d <burgin - d@niediak.com>, "charles.o'donnell" <charles.o'donnell@veco.com>, "Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <MikeI.Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <PlattJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP .com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins - mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barb ara. f. fullmer" <barbara. f. fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmai1.com>, doug_schultze <doug_schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobi1.com>, yesnol <yesnol@gci.net>, "john. w .hanes" <john. w.hanes@exxonmobi1.com>, babsonandsheppard <babsonandsheppard@warthlink.net>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>, "fred.steece" <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net> i... 10f2 6/18/20038:36 AM Notice of Public Hearing ( ( -"...-.-.,-,----,,,-,,,---,"" k. ..---..--- N aIDe: West F oreland.doc œJWest Foreland.doc Type: WINWORD File (applicationlmsword) Encoding: base64 ~_._-.._-_.__..._._._----.__._. ------- ~dY Colombie <iody colombie(a)admin. state. ak. us> I 2of2 6/18/2003 8:36 AM Notice (' ( Subject: Notice Date: Wed, 18 Jun 2003 08:38:27 -0800 From: J ody Colombie <jody - colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: "Aaron Poschman, Classifieds Manager" <classifieds@gci.net> The publish the attached Notice. Jody Colombie Name: West Foreland.doc Œ9West Foreland.doc Type: WINWORD File (applicationlmsword) Encoding: base64 N aIDe: Ad Order form. doc ~Ad Order form. doc; Type: WINWORD File (applicationlmsword) Encoding: bas~6~ . Jody Colombie <iodv coIOlnbie@admin.state.ak.us> 1 of I 6/18/20038:38 AM SO Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SO 57702 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eva!. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 ( Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,lD 83702 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 ( John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Penny Vadla Box 467 Ninilchik, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 (' Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 #1 CO 450A Wcstforeland Gas Field Spacing Exception f' II \ Subject: CO 450A Westforeland Gas Field Spacing Exception Date: Mon, 16 Jun 2003 09:51 :39 -0800 From: Jack Hartz <jack_hartz@admin.state.ak.us> To: Sarah H Palin <sarah-palin@admin.state.ak.us>, Daniel T Seamount JR <dan - seamount@admin.state.ak.us>, Randy Ruedrich <randy - ruedrich@admin.state.ak.us> cc: Jody Colombie <jody_colombie@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us> Jim Arlington spoke to Jody and I this morning about items related to CO 450A. Summary 1. Forest has come to agreement with BLM and DNR on Production Allocation methods for Westforeland gas. 2. Apparently not all interest owners have signed of on the agreement for the Production Allocation method. He said there were 50-60 interests including overriding royalty interests that have to come to agreement. 3. Forest wants a hearing so parties can argue for or against the allocation method. 4. Forest will need an extension to 450A spacing exception to cover the merits of the allocation method can production (or whatever disposition is issued. 5. There may be some confidentiallity issues associated with the volumetrics and underlying reservoir and geologic data associated with the Production Allocation method the 7/1/2003 deadline for the CO period until I a hearing on the be completed and an order allowing is appropriate) from the gas field Action Items in progress 1. Jody has put a hearing on the calendar for 7/25. 2. Forest (Arlington) is sending a letter today requesting the hearing and extension. Jack C::::':::::::::::'-;;"::':';:::::':::::.:::::==::::::::::::::::: .._.........................~.~~.""." Jack Hartz <iack hartz@admin.state.ak.us> Sr. Reservoir Engineer Alaska Oil & Gas Conservation Commission I of 1 6/1 7/2003 4:29 PM
