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CO 455
Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process, It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file, y~...~_ Conservation Order Category Identifier Organizing [] Orayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA OVERSIZED (Scannable with large pier) [] Diskettes, No. w ...[t~aps: [] Other, No/Type [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) Logs of various kinds [] Other Scanning Preparation TOTAL PAGES Production Scanning Stage '1 PAGE COUNT FROM SCANNED DOCUMENT: ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: y YES NO BY: Stage 2 IF NO IN.STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd INDEX CONSERVATION ORDER NO. 455 1. March 27, 2001 Unocal's Coast Project Questionnaire 2. April 5, 2001 Public Notice Application for Permit 3. April 17, 2001 Application for Spacing Exception 4. April 24, 2001 AOGCC notice of Publisher, Notice of Hearing, Affidavit Publication, mailing list 5. May 2, 2001 Marathon's request for a hearing on Unocal's spacing Exception of Albright # 1 well 6. May 8, 2001 AOGCC notice of Publisher, Amended Notice of Hearing Affidavit of Publication, mailing list 7. June 26, 2001 Commissioners Potential Ethic Violation 8. July 5, 2001 Unocal's request for Oil Spill Contingency Plan Exemption 9. June 28,2001 Sign In sheet for Hearing 10. July 16, 2001 Transcript of Hearing dated June 28, 2001 July 30, 2001 Conservation Order STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Union Oil Company ) of California ("Unocal") for an order granting ) an exception to the spacing requirements of ) 20 AAC 25.055(a)(2) to provide for the drilling ) and testing of the Albright # 1 exploratory well to ) an undefined gas pool ) Conservation Order No. 455 Albright # 1 Exploratory Well July 30, 2001 IT APPEARING THAT: . o Union Oil Company of California ("Unocal") by letter dated April 17, 2001, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(2). The exception would allow the proposed Albright # 1 exploratory well to be drilled and test produced for gas at a bottomhole location that is closer than 1500 feet to a property line. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on April 24, 2001 and a revised notice was published on May 8, 2001, pursuant to 20 AAC 25.540. in correspondence dated May 2, 2001 Marathon Oil Co. ("Marathon"), an offsetting owner, objected to the spacing exception requested by Unocal and requested a hearing on the matter. 4. On June 28, 2001 the requested hearing was held at the Commission's offices. Marathon objected to Commissioner Seamount's participation in the hearing due to his previous involvement with subjects relating to the Albright # 1 well as a Unocal employee. 6. Commissioner Seamount did not participate in the hearing or decision in this matter. FINDINGS: 1) The Albright #1 well would be drilled as a straight hole to a bottom hole location 2277' from the west line (FWL), 550' from the north line (FNL) of Section 24, TlS, R14W, Seward Meridian (SM). 2) The Albright #1 well would be open for test production at an interval located 550 feet from a lease boundary where both owners and landowners change. Conservation Order No. 455 July 30, 2001 Page 2 3) Unocal attempted to notify all offset owners, landowners, and operators of all wells within 3,000 feet of the Albright #1 well. Marathon did not receive mailed notice, but it had actual notice as a result of seeing the Commission's published notice. 4) Unocal's witness testified that the proposed Albright # 1 exploratory gas well is necessary to establish the volume of gas reserves Unocal owns in the general area, in order to commit the reserves to a proposed pipeline construction project, and that it sought to drill the well at this time due to contractual time constraints related to the commitment of those reserves. 5) Unocal presented two structure maps of the top of the Tyonek Formation in the Albright #1 vicinity. One contains Unocal lease status information and the other illustrates surface conditions in the area with special reference to roads, swamps, and marshes. 6) Unocal's witness testified that for the purpose of proving reserves, the optimal location for the Albright #1 well is as far as possible up structure from the Mobil Ninilchik Unit gl well. 7) The Unocal structural interpretation of the subject area indicates the Albright gl location is structurally high relative to the nearby Mobil Ninilchik Unit gl well and is near the structurally highest location possible on 100% Unocal leases. 8) Unocal's witness testified that property owners adjacent to the lease containing the proposed Albright #1 location and in structural locations equivalent to the proposed location had objected to Unocal's drilling proposal. 9) Unocal's witness testified that surface access and surface topographical conditions on the subject lease further constrained possible locations to the proposed location. 10) Marathon's witness disagreed with Unocal's structural interpretation in that he believed a prominent fault was located incorrectly. 11) Marathon's witness testified that Marathon believes the proposed well could be located in a more advantageous structural location. 12) Unocal's witness testified that if successful the well would be tested but not completed as a well capable of regular production until correlative rights issues had been resolved with adjacent owners. 13) Due to the size and shape of the lease on which Unocal proposes to drill the Albright gl well, there is no location on that lease where an exploratory gas well could be open to test production 1,500 or more feet away from a property line. 14) Due to the size and shape of the other tracts in the governmental section containing the lease on which Unocal proposes to drill the Albright # 1 well and due to the configuration of the structure intended to be explored by that well, there is no other location in that governmental section where an exploratory gas well could be open to test production substantially up structure from the Mobil Ninilchik Unit gl and also 1,500 or more feet away from a property line. Conservation Order No. 455 July 30, 2001 Page 3 15) Drilling and testing one or more wells in addition to the abandoned Mobil Ninilchik Unit gl well is reasonably necessary to determine the extent of productive gas reservoir(s) within Unocal's property. 16) Existing well, seismic, and topographical data provide a reasonable basis for Unocal to conclude that the proposed well location is optimally situated within its lease and within the governmental section containing its lease for the purpose of establishing the volume of gas reserves it owns in the general area. CONCLUSIONS: 1) An exception to 20 AAC 25.055(a)(2) is necessary to allow drilling and test production of the Albright gl exploratory gas well. 2) Granting a spacing exception to allow drilling and reasonable test production of the Albright gl exploratory well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. 3) Granting this spacing exception is reasonably necessary to provide Unocal with a timely opportunity to establish the volume of gas reserves it owns in the general area. 4) No other location on Unocal's lease would enable test production for gas in accordance with the spacing rules under 20 AAC 25.055. 5) No other location within the governmental section containing Unocal's lease would enable test production for gas substantially up structure from the previously drilled well in the structure to be explored and in accordance with the spacing rules under 20 AAC 25.055. 6) Before regular production is permitted from the Albright gl well, the Commission must take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception, and so that drainage from developed units to the tract with respect to which the exception is granted will be prevented or minimized. AS 31.05.100(b). NOW, THEREFORE, IT IS ORDERED: Unocal's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(2) for the purpose of drilling and testing the Albright # 1 well is approved under the following conditions. 1) The Albright #1 exploratory gas well must be logged and tested to determine the well's potential to produce hydrocarbons. 2) The operator must obtain the Commission's prior approval of a testing program for the well. 3) The Albright #1 well may not be placed on regular production until the Commission takes additional action, upon petition, and after notice and hearing, to offset any advantage Unocal may have over other owners by reason of drilling Albright # 1 to the Conservation Order No. 455 July 30, 2001 Page 4 exception location and to allow affected owners to produce their just and equitable share of hydrocarbons. Such Commission action may include establishing a new drilling unit and providing for the pooling of separately owned properties within the drilling unit. DONE at Anchorage, Alaska and dated July 30, 2001. CaS~'Oec lifT'ay' l~r,X~ha~i~'~ Alask~O~ ~as Conserv2tion Commission Julie M. Heusser, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., l0th day after the application for rehearing was filed). PIRA ENERGY GROUP, LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 NY PUBLIC LIBRARY DIV E, GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 OFFICE OF THE GOVERNOR, JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN, LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV, CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS, STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY, PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP, BRANDY KERNS PO BOX 8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY, LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DPC, DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES, OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A, LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV, LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY, SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 MURPHY E&P CO, ROBERT F SAWYER P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS, SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 XTO ENERGY, SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 IOGCC, P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL 202 E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL, LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOC., INC., LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 US DEPT OF ENERGY, ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOLYER & MACNAUGHTON, MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 STANDARD AMERICAN OIL CO, AL GRIFFITH P O BOX 370 GRANBURY, TX 76048 XTO ENERGY, MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 SHELL WESTERN E&P INC, G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 H J GRUY, ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 PURVIN & GERTZ INC, LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON 2016 MAIN #1415 HOUSTON, TX 77002-8844 CHEVRON, PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 OIL & GAS JOURNAL, BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO, DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 MARATHON OIL CO, GEORGE ROTHSCHILD JR RM 2537 P O BOX 4813 HOUSTON, TX 77210 UNOCAL, REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLOR CO, LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 EXXON EXPLORATION CO., T E ALFORD P O BOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC., ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO, DAVID PHILLIPS P O BOX 1702 HOUSTON, TX 77251-1702 PHILLIPS PETROLEUM COMPANY, W ALLEN HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL, DONNA WILLIAMS P O BOX 2608 HOUSTON, TX 77252 EXXONMOBIL PRODUCTION COMPANY, GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY, J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P, WILL D MCCROCKLIN P O BOX 2967 HOUSTON, TX 77252-2967 CHEVRON CHEM CO, LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON, Ms. Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY, ANDREW C CLIFFORD PO BOX 79593 HOUSTON, TX 77279-9593 PHILLIPS PETR CO, PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC, R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP, LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS, MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 BABCOCK & BROWN ENERGY, INC., 350 INTERLOCKEN BLVD STE 290 BROOMFIELD, CO 80021 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G VAUGHT JR P O BOX 13557 DENVER, CO 80201 US GEOLOGICAL SURVEY, LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 C & R INDUSTRIES, INC.,, KURT SALTSGAVER 7500 W MISSISSIPPI AVE STE C4 LAKEWOOD, CO 80226-4541 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC, RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 1655 80901- RUBICON PETROLEUM, LLC, BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 TAHOMA RESOURCES, GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY, LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC, P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY, SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 BABSON & SHEPPARD, JOHN F BERGQUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC., 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 TEXACO INC, Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY, KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY, GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC, SAM VAN VACTOR P O BOX 683 PORTLAND, OR 97207 US EPA REGION 10, THOR CUTLER OW-137 1200 SIXTH AVE SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER, MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 DEPT OF REVENUE, OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC, JESSE MOHRBACHER 7151 ST #4 ANCHORAGE, AK 99501 GUESS & RUDD, GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE, LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF ENVIRONMENTAL HEALTH JANICE ADAIR 555 CORDOVA STREET ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA, 1026 W. 4th Ave, Ste 201 ANCHORAGE, AK 99501 DEPT OF ENVIRON CONSERVATION, DIV OF AIR & WATER QUALITY TOM CHAPPLE 555 CORDOVA STREET ANCHORAGE, AK 99501 DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 995O1 FOREST OIL, JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 DEPT OF REVENUE, DAN DICKINSON, DIRECTOR 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 DEPT OF REVENUE, CHUCK LOGSTON 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 DEPT OF REVENUE, BEVERLY MARQUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 YUKON PACIFIC CORP, JOHN HORN VICE CHM 1049 W 5TH AV ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP, LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW, ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO, GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501o2101 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE, OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS BRUCE WEBB 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OIL & GAS WILLIAM VAN DYKE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JULIE HOULE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DNR, DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, PUBLIC INFORMATION CTR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 AK JOURNAL OF COMMERCE, OIL & INDUSTRY NEWS ROSE RAGSDALE 4220 B Street Ste #210 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JIM STOUFFER 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 BRISTOL ENVIR SERVICES, JIM MUNTER 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 HDR ALASKA INC, MARK DALTON 2525 C ST STE 305 ANCHORAGE, AK 99503 ANADARKO, MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 N-I TUBULARS INC, 3301 C Street Ste 209 ANCHORAGE, AK 99503 BAKER OIL TOOLS, ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 ALASKA OIL & GAS ASSOC, JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER, 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 FINK ENVIRONMENTAL CONSULTING, INC., THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 AMERICA/CANADIAN STRATIGRPH CO, RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BLM AK DIST OFC, RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 UOA/ANCHORAGE, INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 VECO ALASKA INC., CHUCK O'DONNELL 949 EAST 36TH AVENUE ANCHORAGE, AK 99508 TRADING BAY ENERGY CORP, PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 US MIN MGMT SERV, AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 GORDON J. SEVERSON 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV, FRANK MILLER 949 E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS, MMS ALASKA OCS REGION 949 E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS - ALASKA SECTION, LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 CIRI, LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 PHILLIPS ALASKA, LAND MANAGER JIM RUUD P.O. BOX 100360 ANCHORAGE, AK 99510 ANCHORAGE TIMES, BERT TARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 PHILLIPS ALASKA, LEGAL DEPT MARK P WORCESTER P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, LAND DEPT JAMES WlNEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, MARK MAJOR ATO 1968 P O BOX 100360 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP, KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 PHILLIPS ALASKA, KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO, PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO, LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT, OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS, EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JODY COLOMBIE 6811 ROUND TREE DRIVE ANCHORAGE, AK 99516 JWL ENGINEERING, JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP, ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE, AK 99518 ASRC, CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV, MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD & ASSOC, ERIK A OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO, BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO, OPERATIONS SUPT W.C. BARRON P O BOX 196168 ANCHORAGE, AK 99519-6168 MARATHON OIL CO, LAND BROCK RIDDLE P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL, P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL, KEVIN TABLER P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY, MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC., MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INC, SUE MILLER P O BOX 196612 M/S LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INC, PETE ZSELECZKY LAND MGR P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INC, INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INC, MR. DAVIS, ESQ P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 AMSI/VALLEE CO INC, WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 PINNACLE, STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 D A PLATT & ASSOC, 9852 LITTLE DIOMEDE ClR EAGLE RIVER, AK 99577 JAMES RODERICK PO BOX 770471 EAGLE RIVER, AK 99577-0471 DEPT OF NATURAL RESOURCES, DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER, BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 RON DOLCHOK P O BOX 83 KENAI, AK 99611 PHILLIPS PETROLEUM CO, ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 DOCUMENT SERVICE CO, JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH, ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWlCH, MICHAEL A BELOWICH 1125 SNOW HILL AVE WASlLLA, AK 99654-5751 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 PACE, SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE, REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 VALDEZ PIONEER, P O BOX 367 VALDEZ, AK 99686 ALYESKA PIPELINE SERVICE CO, VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ VANGUARD, EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS, PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 FAIRBANKS DALLY NEWS-MINER, KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 C BURGLIN P O BOX 131 FAIRBANKS, AK 99707 FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES, DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC, P O BOX 58055 FAIRBANKS, AK 99711 ASRC, BILLTHOMAS P O BOX129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX, PETR DEVEL LAB SHIRISH PATIL 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS, PETR DEVEL LAB DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OFENVIRON CONSERV SPAR, CHRIS PACE 410 WILLOUGHBY AV STE105 JUNEAU, AK 99801-1795 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Union Oil Company ) of Califomia ("Unocal") for an order granting ) an exception to the spacing requirements of ) 20 AAC 25.055(a)(2) to provide for the drilling ) and testing of the Albright # 1 exploratory well to ) an undefined gas pool ) Conservation Order No. 455 Albright # 1 Exploratory Well July 30, 2001 IT APPEARING THAT: . o Union Oil Company of Califomia ("Unocal") by letter dated April 17, 2001, requested an exception to the well spacing provisions of 20 AAC 25.055(a)(2). The exception would allow the proposed Albright # 1 exploratory well to be drilled and test produced for gas at a bottomhole location that is closer than 1500 feet to a property line. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on April 24, 2001 and a revised notice was published on May 8, 2001, pursuant to 20 AAC 25.540. In correspondence dated May 2, 2001 Marathon Oil Co. ("Marathon"), an offsetting owner, objected to the spacing exception requested by Unocal and requested a hearing on the matter. 4. On June 28, 2001 the requested hearing was held at the Commission's offices. o Marathon objected to Commissioner Seamount's participation in the hearing due to his previous involvement with subjects relating to the Albright # 1 well as a Unocal employee. 6. Commissioner Seamount did not participate in the hearing or decision in this matter. FINDINGS: The Albright #1 well would be drilled as a straight hole to a bottom hole location 2277' from the west line (FWL), 550' from the north line (FNL) of Section 24, TiS, R14W, SeWard Meridian (SM). 2) The Albright #1 well would be open for test production at an interval located 550 feet from a lease boundary where both owners and landowners change. {' Conservation Order No. 455 July 30, 2001 Page 2 3) Unocal attempted to notify all offset owners, landowners, and operators of all wells within 3,000 feet of the Albright # 1 well. Marathon did not receive mailed notice, but it had actual notice as a result of seeing the Commission's published notice. 4) Unocal's witness testified that the proposed Albright #1 exploratory gas well is necessary to establish the volume of gas reserves Unocal owns in the general area, in order to commit the reserves to a proposed pipeline construction project, and that it sought to drill the well at this time due to contractual time constraints related to the commitment of those reserves. 5) Unocal presented two structure maps of the top of the Tyonek Formation in the Albright #1 vicinity. One contains Unocal lease status information and the other illustrates surface conditions in the area with special reference to roads, swamps, and marshes. 6) Unocal's witness testified that for'the purpose of proving reserves, the optimal location for the Albright gl well is as far as possible up structure from the Mobil Ninilchik Unit gl well. 7) The Unocal structural interpretation of the subject area indicates the Albright # 1 location is structurally high relative to the nearby Mobil Ninilchik Unit gl well and is near the structurally highest location possible on 100% Unocal leases. 8) Unocal's Witness testified that property owners adjacent 'to the lease containing the proposed Albright gl location and in structural locations equivalent to the proposed location had objected to Unocal's drilling proposal. 9) Unocal's witness testified that surface access and sUrface topographical conditions On the subject lease further constrained possible locations to the proposed location. 10) Marathon's witness disagreed with Unocal's structural interpretation in that he believed a prominent fault was located incorrectly. 11) Marathon's witness testified that Marathon believes the proposed well could be located in a more advantageous structural location. 12) 13) Unocal's witness testified that if successful the well would be tested but not completed as a well capable of regular production until correlative fights issues had been resolved with adjacent owners. Due to the size and shape of the lease on which Unocal proposes to drill the Albright gl well, there is no location on that lease where an exploratory gas well could be open to test production 1,500 or more feet away from a property line. 14) Due to the size and shape of the other tracts in the governmental Section Containing the lease on which Unocal proposes to drill the Albright # 1 well and due to the configuration of the structure intended to be explored by that well, there is no other location in that governmental section where an exploratory gas well could be open to test production substantially up structure from the Mobil Ninilchik Unit gl and also 1,500 or more feet away from a property line. Conservation Order No. 455 July 30, 2001 Page 3 15) Drilling and testing one or more wells in addition to the abandoned Mobil Ninilchik Unit gl well is reasonably necessary to determine the extent of productive gas reservoir(s) within Unocal's property. 16) Existing well, seismic, and topographical data provide a reasonable basis for Unocal to conclude that the proposed well location is optimally situated within its lease and within the governmental section containing its lease for the purpose of establishing the volume of gas reserves it owns in the general area. CONCLUSIONS: 1) An exception to 20 AAC 25.055(a)(2) is necessary to allow drilling and test production of the Albright # 1 exploratory gas well. 2) Granting a spacing exception to allow drilling and reasonable test prOduction of the Albright gl exploratory well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. 3) Granting this spacing exception is reasonably necessary to provide Unocal with a timely opportunity to establish the volume of gas reserVes it owns in the general area. 4) 5) No other location on Unocal's lease would enable test production for gas in accordance with the spacing rules under 20 AAC 25.055. No other location within the govemmental section containing Unocal's lease WOuld enable test production for gas substantially up structure from the previously drilled well in the structure to be explored and in accordance with the spacing rules under 20 AAC 25.055. 6) Before regular production is permitted from the Albright gl well, the Commission must take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception, and so that drainage from developed units to the tract with respect to which the eXception is. granted will be prevented or minimized. AS 31.05.100(b). NOW, THEREFORE, IT IS ORDERED: Unocal's application for exception to the well spacing provisions of 20 AAC 25.055 (a)(2) for the purpose of drilling and testing the Albright # 1 well is approved under the following conditions. 1) The Albright # 1 exploratory gas well must be logged and tested to determine the well's' potential to produce hydrocarbons. 2) . The operator must obtain the Commission's prior approval of a testing program for the well. 3) The Albright gl well may not be placed on regular production until the Commission takes additional action, upon petition, and after notice and hearing, to offset any advantage Unocal may have over other owners by reason of drilling Albright # 1 to the Conservation Order No. 455 July 30, 2001 Page 4 exception location and to allow affected owners to produce their just and equitable share of hydrocarbons. Such Commission action may include establishing a new drilling unit and providing for the pooling of separately owned properties within the drilling unit. DONE at Anchorage, Alaska and dated July 30, 2001. Cammyy~O..ecbOec .... li Taylor, Chai~.5} Alaska Off and Gas Conservation Commission Julie M. Heusser, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice, of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., l0th day after the application for rehearing was filed). of the above was faxed/mailed to each of the fo~lowt~ at?their addresses of #10 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 ALASKA OIL AND GAS CONSERVATION COMMISSION PUBLIC HEARING In Re: UNOCAL CORPORATION SOUTH NINILCHIK DRILLING ALBRIGHT #1 WELL SPACING EXCEPTION. VOLUME I ) ) ) ) ) RECEiVeD JUL 1 6 2001 Alaska 0il & Gas Cons. Commi$sior~ Anchorage TRANSCRIPT OF PROCEEDINGS Anchorage, Alaska June 28, 2001 9:00 o'clock a.m. APPEARANCES: Commissioners: MS. CAMMY OECHSLI TAYLOR MS. JULIE HEUSSER Attorney General's Office: MR. ROBERT E. MINTZ UNOCAL: MR. KEVIN TABLER Manager, Land and Government Affairs Unocal P.O. Box 196247 Anchorage, Alaska 99519-6247 MARATHON: MR. THOMAS P. AMODIO Foster, Pepper, Rubini Reeves, LLC 1007 West Third Avenue Suite 100 Anchorage, Alaska 99501 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 l 0RIGINAL !' 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 TABLE OF CONTENTS 3WITNESSES: RECROSS VOL DIRECT CROSS REDIRECT FOR UNOCAL: Kevin Allen Tabler Larry J. Smith Shannon W. Martin I 10 36 I 28 36 I 51 56 FOR MARATHON: David L. Brimberry I 43 EXHIBITS: MARKED ADMITTED Unocal Exhibit 1 (South Ninilchik Area, Top Tyonek Structure Map with Leases) Unocal Exhibit 2 (topographical map, Top Tyonek Structure Map with an IKONOS image and leases.) 13 60 13 60 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 P R O C E E D I N G S (On record - 9:12 a.m.) COMMISSIONER TAYLOR: I'd like to call this hearing to order. Today is Thursday, June 28th. It's approximately 9:10. We're at the Oil and Gas Conservation Commission offices at 333 West Seventh, Suite 100. I'd like to introduce the people here at the head of the room. My name is Cammy Taylor. I'm one of the three commissioners. To my right is Dan Seamount, and to my very far left is Julie Heusser, the other two commissioners. To my immediate left is Robert Mintz, Assistant Attorney General who's here to advise the Commission just on legal and procedural matters. Meredith Downing is to my far right. She's here from Metro Court Reporting and will be making a transcript of these proceedings. If either party would like a copy of that, they can contact Metro Court Reporting directly. The purpose of this hearing today is to consider an application from Unocal Alaska Resources for a spacing exception for the Albright number 1 well of the South Ninilchik Drilling Pad in accordance with 20 AAC 25.055(a) (2) for an exploratory gas well to be drilled within 1,500 feet of a property line. Notice of this hearing was published on April 24th, 2001, and an amended notice was published on May 8th in the Anchorage Daily News. The AOGCC subsequently received an objection to this METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 27~38~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 application from Marathon Oil Company on May 3rd, 2001. These proceedings today will be held in accordance with 20 AAC 25.540, our regulation governing public hearings. This whole hearing will be recorded. We will also provide for sworn and unsworn testimony, although the Commission will give greater weight to sworn testimony. If a witness wishes to be considered as an expert witness, we would ask that they provide their qualifications to the Commission, and the Commission will rule on accepting their testimony as an expert. We will proceed by hearing from the Applicant first, and then allow an opportunity for other interested parties to ask questions through the Commission, so we would ask that you would submit written questions to the head table up here in writing. If there's a request for cross examination from the other party, we'll take that up at that time. There's a sign-in sheet. I hope everybody has signed in. There is one other matter we'd like to take up before we proceed, and that is a matter that Mr. Seamount has raised. COMMISSIONER SEAMOUNT: Pursuant to the Executive Branch Ethics Act I have a disclosure to make. I worked for Marathon Oil Company in the Rocky Mountains from 1981 until 1988. I resigned from Marathon and worked for Unocal from 1988 until 2000 and -- the year 2000. From 1997 until I was appointed AOGCC Commissioner, I METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 ~0~ 27~38~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 worked on a team which developed gas prospects in Cook Inlet. One of the last prospects that I was involved with was on the -- or areas was on the Ninilchik dome where the proposed subject well is located. Unocal management asked me if we should acquire some acreage on the dome. I constructed some maps and looked at some logs and said that we should acquire some of the acreage. Shortly thereafter I resigned from Unocal. During -- also during my employment with Unocal, all of my 401(k) retirement account consisted of Unocal stock. I still have the account and have not divested several thousand shares of Unocal stock. The stock's presently valued at about $33 a share. I also have options on about 500 shares of Unocal stock. I have asked my ethics supervisor, the Commission's Chair, to render a decision as to whether my involvement would be a violation of the Ethics Act. (Whispered conversation) COMMISSIONER TAYLOR: This is my determination under AS 39.52.220 as to whether Commissioner Dan Seamount's involvement in the Commission's determination of Unocal's well spacing exception would result in a violation of AS 39.52.110 through 39.52.190. The Commission action and the potential basis for the violation are described in what I would have attached as a letter from Commissioner Seamount, which he has METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 just read into the record, dated June 26th, 2001. The pertinent provisions of the Executive Branch Ethics Act are AS 39.52.120(b) (4), which prohibits a public officer from taking or withholding official action in order to affect a matter in which the public officer has a personal or financial interest. And AS 39.52.110(b) (1) which in effect exempts situations in which the public officer's personal financial interest in the matter is insignificant. The only facts described in Commissioner Seamount's letter that raise an issue are his stock ownership and options. The matter in question is the granting or denial of Unocal's requested spacing exception. I find that the Commission's decision in this matter would not have a significant effect on Commissioner Seamount's personal or financial interest. Consequently, my determination is that Commissioner Seamount's involvement would not violate AS 39.52.110 through 39.52.190. Does Commissioner Heusser have any objection to that determination? COMMISSIONER HEUSSER: None. COMMISSIONER TAYLOR: Without objection, Commissioner Seamount is allowed to participate under the Executive Branch Ethics Act. Apart from the Executive Branch Ethics Act, I would ask the representatives of both parties here today if either has any objection to Commissioner Seamount's participation in this METRO COURT REPORTING, INC. 745 West ~urth Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~o~ 2~-3s~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 matter? MR. TABLER: We have no objection. I just feel sorry he still has so much Unocal stock. COMMISSIONER SEAMOUNT: So do I. COURT REPORTER: I need to know who's speaking. MR. TABLER: Kevin Tabler, Unocal. COMMISSIONER TAYLOR: Mr. Tabler, are you going to be representing Unocal today at this hearing? MR. TABLER: Yes. COMMISSIONER TAYLOR: Would you like to come up to the table and sit down? That way you will be closer to the microphone as well. MR. TABLER: Do I need to clip that on? COURT REPORTER: Yes. MR. TABLER: Would that be helpful? COMMISSIONER TAYLOR: And for Marathon, who will be representing? fine? MR. TABLER: How is that, can you hear that MR. AMODIO: Tom Amodio on behalf of Marathon. COMMISSIONER TAYLOR: Mr. Amodio, if you would, just for the court reporter, spell you name so that she can have that in the record? MR. AMODIO: It's A-m-o-d-i-o. I guess Marathon has some concern if the Commissioner has done some METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 ~0~ 276-3876 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 work or been involved in the development. I don't disagree with the Chair's decision on the ethics. I think it is clearly that's not a -- an issue, and we don't take exception to that. But we do have some concern that his -- he might have specific knowledge relating to this matter which would not be presented as evidence by Unocal, but in his professional capacity would relate specifically to this issue and to the field in question. COMMISSIONER TAYLOR: Generally it's my understanding that in order for a commissioner to be disqualified from participating, it must be shown that they're not able to make a fair and impartial decision. Do you have a basis for that? MR. AMODIO: We don't have any basis, but we don't -- the problem is we don't know what his involvement, the extent of his involvement. From what he read, there's no apparent -- it is not clear, but there's some concern that he might have made a decision or have some knowledge that would not come -- come into the public record which -- upon which he might base his decision. And I don't -- I don't have any -- we're not suggesting that he would be impartial, but we wouldn't know of that evidence. COMMISSIONER TAYLOR: Okay. If you would give us just a second? MR. AMODIO: Sure. COMMISSIONER TAYLOR: If the parties won't METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 mind, the Commission will take just a brief break. Madame Court Reporter, if you wouldn't mind, we'll go off the record for just a few minutes, and we should be back in about ten minutes. (Off record - 9:22 a.m.) (On record - 9:34 a.m.) COMMISSIONER TAYLOR: The time is approximately 9:35. Gentlemen, because we're not clear what issues are going to be addressed in this matter, it's difficult for Commissioner Seamount to determine what information he may have previously acquired that might be relevant to this decision, and whether it would be necessary to disclose that on the record today. Therefore, in the interest of expediting this proceeding, and erring on the side of caution, Commissioner Seamount has decided to recuse himself and will not participate in this matter today. COMMISSIONER SEAMOUNT: Thank you. COMMISSIONER TAYLOR: And the record should reflect that Commissioner Seamount has excused himself from the hearing. Mr. Tabler, I guess we're ready to proceed with Unocal's application. MR. TABLER: You bet. COMMISSIONER TAYLOR: Are you going to be providing testimony today? METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 0o~ 2~-~8~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 MR. TABLER: Yes. Would you like a and I can provide a copy afterwards, or I can -- I have some ..... COMMISSIONER TAYLOR: Either way, it doesn't matter. sworn? MR. TABLER: I have some comments. COMMISSIONER TAYLOR: Would you like to be MR. TABLER: Yes. COMMISSIONER TAYLOR: Would you raise your right hand, please? (Oath administered) MR. TABLER: I do. KEVIN ALLEN TABLER having been first duly sworn under Oath, testified as follows on examination: DIRECT EXAMINATION COMMISSIONER TAYLOR: Could you please give your full name on the record so that the court reporter can get that down. A Yes. A A COMMISSIONER TAYLOR: My name is Kevin Allen Tabler. COMMISSIONER TAYLOR: And spell your name. And who do you represent? I represent Union Oil Company of California, more commonly known as Unocal. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 10 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 COMMISSIONER TAYLOR: Do you wish to give testimony as an expert witness today? And if so, what would be the subject of your expert testimony? A Yeah. I mean, I -- at this point, no. COMMISSIONER TAYLOR: Okay. A If it becomes apparent that there's a topic on which I'd like to be sworn in, is it possible to be sworn in ..... COMMISSIONER TAYLOR: As an expert at that point? A As an expert at that time. COMMISSIONER TAYLOR: We can deal with your qualifications then. A Thank you. COMMISSIONER TAYLOR: Please proceed. A Madam Chairman, Commissioners, my name is Kevin Tablet. I'm the Manager of Land and Government Affairs for Union Oil Company of California, Unocal, here in Alaska. For the record, our mailing address is P.O. Box 196247, Anchorage, Alaska 99519-6247, with a street address of 909 West Ninth Avenue, Anchorage, Alaska 99501. I'm here today on behalf of Unocal seeking authority for exception to the well spacing requirements of 20 AAC 25.055 (a) (2) for the drilling and testing of an METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~ska 99501 ~0~ 27~3876 11 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 exploratory gas well 550 feet from the north line, 2,277 feet from the west line of Section 24 Township 1 South 14 West Seward Meridian. The proposed location is within 1,500 feet of a property line where the owner and the land owner are different on both sides. The map I have on display to my left here more clearly depicts the exact location and ownerships. And we can go through that if you have any questions when I finish with my testimony, or would you like to ..... You can see the Albright number 1 well in relation -- the yellow is Unocal 100 percent acreage. The orange represents where the affected property owners would be. Unocal does have an interest in that, but also there are different property owners. And you can see the location, which is 550 feet south of the -- of that property line. COMMISSIONER TAYLOR: Mr. Tabler, why don't we have this exhibit marked so that for the record it is ..... A Sure. COMMISSIONER TAYLOR: ..... identified as to what we're referring to, and we can relate your testimony to it? A Yes. Why don't we make this Exhibit 1, ..... COMMISSIONER TAYLOR: Okay. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 12 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A ..... if that's all right. The status ..... COMMISSIONER TAYLOR: It will be marked as Unocal Exhibit Number 1. (Unocal Exhibit 1 marked for identification) A And that is the it's entitled South Ninilchik Area, Top Tyonek Structure Map with Leases as Exhibit 1. Exhibit 2 I brought along. It is a topographical map which gives a representation of the surface conditions. It is entitled Top Tyonek Structure Map with an IKONOS image and leases as Exhibit Number 2. (Unocal Exhibit 2 marked for identification) COMMISSIONER TAYLOR: Thank you. Go ahead. A Our request for exception to the statewide spacing regulations is consistent with the statutory authority granted the Commission under AS 31.05.100(b), and is the best, if not the only, location on acreage under control by Unocal which will evaluate the proposed structural objectives for the well. Placement of this well any place else puts the well at risk of being physically and economically nonproductive. Additionally, topographical conditions caused by property access constraints are such as to make the drilling of this well at another -- any other location unduly burdensome, and could expose Unocal to potential litigation. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 13 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Our reasons for drilling a well at this location and at this time are as follows. Unocal, Homer Electric, and Enstar have entered into a memorandum of understanding regarding the investigation, evaluation, and feasibility of building a pipeline extending from the existing distribution system south to Homer. The timing and availability of that pipeline is directly dependent on the certification of new and sufficient reserves to justify the expense of building such a line. Currently there are not sufficient reserves available. Our primary objective is the timely certification of new reserves. Unocal is committed to an aggressive exploration drilling and testing program in support of such a pipeline. It is hoped that Marathon will soon join this pipeline initiative. Drilling a well at a location 1,500 feet from an affected property line places the well even further structurally downdip from the optimum crestal withdrawal point, thereby increasing unnecessary geologic risk, and would effectively result in nothing more than a twinning of the Mobil Ninilchik number 1 well which was drilled in 1964. And I will point that out, as you can see down here on Exhibit Number 1. COMMISSIONER TAYLOR: Do you want to use a 745 West ~u~h Avenue, Su~ 55 Anchorage, A~$~ 99501 ~OD 276-38~ 14 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 laser? A Oh, good. Thank you. COMMISSIONER TAYLOR: Uh-huh. This is the Mobil Ninilchik number 1 drilled in 1964. This is our proposed location. To be 1,500 feet from an affected property line would place the well right here in this location, which would also require a spacing exception because we have some unleased acreage with different property owners here and here, and can't get 1,500 feet away. Moving it further south just makes it structurally downdip from ..... Our -- to continue on, our objective is not the unnecessary economic waste of validation of that existing well bore, but rather to prove up and certify reserves in support of a pipeline. Our proposed location is the best location on the structure, which reduces geologic risk, and mitigates the risk of drilling a nonproductive well. Discussions regarding the drilling of a well on joint Unocal/Marathon acreage to test this geologic concept have been unsuccessful. And we've had discussions about the location of a well to test this lower end of the -- of this area with -- with Marathon, and there is disagreement as to the structural complexity down there exactly where -- where we might locate a well, so we METRO COURT REPORTING, INC. ~5 West ~urth Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 15 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 chose and opted to a drill on 100 percent Unocal acreage on which we control and can can do on our own, and control the timing of a well. Rig availability is an important issue when -- which can affect the timing and drilling of a well. Due to the worldwide increase in exploration and production activity caused by rising oil and natural gas prices, rig availability in Cook Inlet became an important consideration when contemplating an exploration program. Because of the time sensitive nature and viability of building a pipeline, and the unavailability of a suitable rig in Cook Inlet, Unocal was forced to contract and mobilize a rig from Canada to perform the -- its exploration drilling program. We have a rig available today, and need to perform the necessary work now to certify reserves. Finally, what we are seeking is the authority to drill and test an exploratory well. We recognize there may be production allocation issues which will have to be addressed at such time as we have a successful well and wish to place such well on production. Production allocation is a topic for some future hearing should the affected parties fail to agree upon a pooling and integration of the interests, or in the absence of unitization. METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 16 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 The issue before us today is not an issue of drainage or protection of correlative rights. Unocal is not requesting authority to produce this well at this time, and has proposed to drill on 100 percent Unocal acreage with 100 percent Unocal dollars, accepting all liability, risk, and expense. Rather, the issue today is the public interest and reserve certification in support of a pipeline. We see no adverse correlative rights issues. In fact, the State and offsetting affected property owners will benefit from the early no-cost evaluation of the structure. Outside of granting the exception, the Commission would not be required to take any action because no advantage is gained by Unocal over the other producers by drilling the well as an exception. Drainage will in fact have been prevented and not occur because Unocal is not asking to produce the well at this time. In conclusion, we are seeking authority to drill and test a well for the primary and initial purpose of reserve certification in support of a new pipeline. The facts are if wells are drilled and new reserves, if any, are insufficient to warrant construction of a pipeline, there will be no production to allocate and no drilling units to establish. We feel we have met the requirements and rationale for spacing exception, METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~0~ 276-38~ 17 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 and there is no reasonable basis for objection. Therefore, we request the Commission issue a spacing exception in support of our well. This concludes my testimony. I'll be most anxious to hear Marathon's testimony, and am available for questions, as well as Mr. Larry Smith, senior advising geophysicist to answer any geological and geophysical questions that you may have. COMMISSIONER TAYLOR: Thank you, Mr. Tabler. I just wanted to clarify one thing. BY COMMISSIONER TAYLOR: Q Did you say that there is no other location within this that you could -- that would not require a spacing exception to drill? A Yeah. Well, you could obviously move the well clear down here into 100 percent Unocal acreage, but you move it structurally downdip and you increase the geologic risks of nonproduction ..... Q Okay. A ..... by moving it down there. There is unleased acreage right in here which have separate property owners, landowners as defined, and also owners as defined by -- by the Commission, and you would not -- you could not get 1,500 feet away without effectively twinning this well. And there would be our METRO COURT REPORTING, INC. 745 West ~urth Avenue, Su~ ~5 Anchorage, A~ska 99501 ~0~ 2~-38~ 18 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q objective is to add reserves, not to validate an existing well bore, and you need to get away from that well bore in order to add reserve. So there is no location that would be suitable. I can also show you on Exhibit B, if you look at Exhibit B, this area that's ..... Exhibit 2? Is this number 2? Or, excuse me, ..... Exhibit Number 2. ..... Exhibit 2. Which is more of a greenish grey color here. This is all wetlands. You can see the proposed location, and in fact we would like to move that location as close and as high as possible on the structure, but for not the wetlands conditions there -- in fact, we're waiting for a Corps of Engineers wetlands determination. We have moved that location to this point right here, which is higher, and you can see where the wetlands begins. To move that location anywhere else, be it in through here, it's all wetlands, there is a potential for litigation here and here from affected property owners. The only access route that we would be able to secure is through a driveway through a RV recreational site, bed and breakfast park, and we would have to widen the road, and it would -- and we have been -- there's been METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 19 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 indications that that would not be necessarily a wise thing to do, nor accepted. And we do know that up in this area up here the property owner, which would be actually structurally higher than where we are here, this acreage is 25 percent leased. There's -- the mineral interest is severed. 25 percent is owned, 60 percent Marathon, 40 percent Unocal. The remaining 75 percent is unleased. Now, when we were doing -- shooting a seismic program in this area in support of picking a location, we had contact with this land owner to gain access, surface access for -- for our seismic program. I met one full day with their attorney, and multiple days on the phone with them and their attorney. They've indicated that if we attempt to locate a well on their property, that as a 75 -- whether they're right or wrong, I don't happen to agree with their interpretation, but having 25 percent of the minerals lease gives us right to access the surface as is reasonably necessary, but that's a separate issue. They are prepared to file a suit, an injunction to stop us. So moving that location anywhere from that point there either moves us geologically at risk, physical risk for a nonproductive well, or -- and would create an unnecessary burdensome situation through potential METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~o~ 2O 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 litigation for access. Sorry, that was long winded, but ..... Q Well, thank you. A ..... I think that's what you were asking. BY COMMISSIONER HEUSSER: Q Mr. Tablet, would you identify what you previously referred to as the lower end of the structure that you had attempted to ..... A This area is downdip, this is the high ..... Q Uh-huh. A ..... on the structure. If we go any further, I'm not qualified to answer it. Maybe I could ask -- if you have additional questions, I can have Larry Smith who is our senior advising geophysicist that can answer any of those sOrts of questions for you. Q I'm curious as to what level of discussions you've had with Marathon in an attempt to reach agreement on the drilling of this area? A The level of discussions have been -- this well is very similar to other well bores that you can see here, and then actually off the map. There's a series of wells that have been drilled on this structure. We believe that they're geologically consistent with' those other opportunities. Unocal and Marathon were able to come to agreement on an area which is encased here, you can METRO COURT REPORTING, INC. 745 West ~unh Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 21 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 see the red line, north, which would encounter those similar type objectives. The idea of drilling and the timing of drilling a well, our concern is the certification of new reserves in support of a pipeline. I don't know what Marathon's issues would be on that, other than perhaps geologic risk, and they'll have to speak to that. But there is faulting that occurs down here. We don't know if that fault is here. We don't know if it's like this, or where that fault exists. We shot 2D seismic data along the transition zone, and a couple of cross sections here in May. That data has not been processed and returned to us yet for -- for evaluation. We hope that by the drilling of this well that we will be able to have a pressure transient analysis which will -- will help identify where exactly that fault is. And so at this point, we don't have enough information to -- I , mean, structurally we could pick a location, but because of surface constraints here from litigation, wetlands issues over here, and the idea that this is 100 percent Unocal acreage, and we can control our own destiny and timing without involvment of partners, we chose this location. Mr. Tabler, I recognize that Unocal is not requesting authority to produce the well at this time. However, METRO COURT REPORTING, INC. ~5 West ~u~h Avenue, Suite 55 Anchorage, A~ska 99501 ~0~ 276-3876 22 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 you ultimately will be drilling and testing this well. What length of a testing operation do you anticipate? A I think at this point it's too early for us to be able to tell you exactly that. I mean, I think it will depend on the zones that we encounter. I am not a technical expert in this area. I don't know I do know that -- that there are proposals for -- we have a joint well going on up here which I believe, and Marathon's the operator, maybe they can answer that question for you, with adequate testing period to identify and test whatever horizons that we -- we'd like to see. I don't have an answer for you there. I don't know that -- Larry, do we ..... MR. SMITH: (Indiscernible - away from microphone) A I'm not sure that we have an answer for that. I don't know that there is a clear, concise answer. COMMISSIONER HEUSSER: Okay. Thank you. COMMISSIONER TAYLOR: Would that same answer apply to the question of volumes that you would anticipate needing for testing? A I believe that would be the case, yes. I'm imagining it's somewhere -- I'm imagining a 30 to 40-day test. I -- testing period. But I -- I may have missed that by 15 days. I may have missed it by by 30 days. But METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~0~ 276-38~ 23 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 I'm assuming that that's a fairly standard testing program, which would be similar to what we're proposing up in this area here, and I'm hopeful that Marathon will be able to answer that. They're -- the reason I say that is that Marathon is the operator of the well that we're currently drilling with them that to the north, and they have a testing procedure established for that well. Maybe that will help answer the question. COMMISSIONER HEUSSER: The well that you're referring to that is being drilled to the north is on the same structure? A They're separate -- they're separate accumulations, the same trend. It's a similar trend. COMMISSIONER TAYLOR: I guess my question would be with respect to the testing and volumes, whether or not the Commission would have sufficient information to actually determine that correlative rights would not be impacted. A Well, ..... COMMISSIONER TAYLOR: You're thinking 30 to 40 days would be ..... A Well, I -- I could -- what I could do is come back with you with a proposal, if you'd like, for a ..... COMMISSIONER TAYLOR: With respect to ..... A With re ..... METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 0o~ 2~-~8~ 24 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 COMMISSIONER TAYLOR: ..... volumes and -- okay. A Yes, with regarding testing and -- and what not. We'd be happy to do that. COMMISSIONER TAYLOR: With more specifics. A Something that would be more specific, yes. I'm just not prepared now to be able to tell you that. I'm not -- and I'm not sure that there's a correlative rights issue there because we're talking about gas volumes, which would be flared or vented. There would be no recovery and sales of those volumes. And it -- I guess I might further add that at such time as we would come in for a a drilling unit, if that were deemed necessary, if unitization procedures didn't address the situation, then the allocation of that test volume would be consistent with the allocation that would be given, and everybody would have paid their proportionate share, so I don't -- I don't see a correlative rights issue there. COMMISSIONER HEUSSER: Mr. Tabler, would you have to approach DNR for approval of the drilling unit for this particular well location? A No, this would be an exploratory well drilled on private ..... COMMISSIONER HEUSSER: On private land. A ..... private land. METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~ska 99501 ~o~ 2~-~8~ 25 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 COMMISSIONER HEUSSER: Okay. COMMISSIONER TAYLOR: Does the Commission have any other questions for Mr. Tabler? COMMISSIONER HEUSSER:' Not at the moment. A Thank you. COMMISSIONER TAYLOR: Are there any questions from the audience? You can give written questions to either of our Commission representatives seated in the back of the room. (Pause) COMMISSIONER TAYLOR: Mr. Amodio, would you like the opportunity to cross exam, cross examine Mr. Tablet, or would you like to just have the questions provided to the Commission? MR. AMODIO: I guess based on the testimony so far, there's not a lot to really cross examine. I guess I would like Mr. Tablet to explain in a little bit greater detail why this is the only place on the property, why it can't be moved back to 1,500 feet, say? That would be about, it. I don't think -- he hasn't presented much evidence yet. COMMISSIONER TAYLOR: I'm sorry, Mr. Amodio, I was talking to ..... MR. AMODIO: Sure. COMMISSIONER TAYLOR: ..... Mr. Mintz, and MR. AMODIO: To explain in a little greater METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 26 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 detail the -- why there isn't a place ..... COURT REPORTER: Your microphone, sir. MR. AMODIO: Sorry. Why there isn't a place that's at 1,500 feet from the boundary that would'be -- he claims that this is the only place on the property that they can drill this well, and I guess we'd just like a little more detail of why he feels that is the case. I don't know that he's provided sufficient basis for that assertion yet. But we'd like those other questions asked. (Pause) COMMISSIONER TAYLOR: Mr. Amodio, the question that was forwarded to the front, can you identify who the questioner was so that we can have it ..... MR. AMODIO: Sure. Mr. David Brimberry. COMMISSIONER TAYLOR: How do you spell the last name? right? MR. AMODIO: It's B-r-i-m-b-e-r-r-y. Is that COMMISSIONER TAYLOR: B-r-i-m? MR. AMODIO: -b-e-r-r-y. COMMISSIONER TAYLOR: Thank you. Mr. Tabler, there are two questions here from Mr. Brimberry. The first one is what information or data went into the construction of the map? A I'm going to have to defer to Mr. Smith. Do you want METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 27 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 to come up, Mr. Smith. COMMISSIONER TAYLOR: Could you come up here, Mr. Smith, and if you could raise your right hand, you could provide some sworn testimony for us. (Oath administered) MR. SMITH: I do. I apologize. I have laryngitis. I don't have a very good voice today. LARRY J. SMITH having been first duly sworn under Oath, testified as follows on examination: DIRECT EXAMINATION A Okay. Can you repeat the question one more time, please. COMMISSIONER TAYLOR: If you could identify yourself for the court reporter, your full name and ..... A Okay. Yeah, my full name is Larry Jay, J-a-y, Smith, S-m-i-t-h. Sorry. Did you catch that. COURT REPORTER: The last name I didn't. A Smith. COMMISSIONER TAYLOR: And the question was what information or data went into the construction of the map? A Okay. That's a compilation of a map that's composed of all the seismic data that Unocal has in its data base, plus the -- the calibration of the wells. COMMISSIONER HEUSSER: Is that proprietary METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 28 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Unocal well data, or is that publicly available? A It's public domain. COMMISSIONER HEUSSER: Public domain? A Yeah, it's 1964 vintage. COMMISSIONER HEUSSER: Okay. COMMISSIONER TAYLOR: Maybe that was the answer to the second question, which says location of data question mark. A Well, there's always a lot of uncertainties with the some of the older vintage data. Some of the data used to compose the map dates back to the 60s and early 70s. Spatial location is always questionable. COMMISSIONER TAYLOR: Commissioner Heusser? COMMISSIONER HEUSSER: I'm not sure who is the right person to answer this question, but you referenced the Marathon Ninilchik number 1 well that was drilled lower on this very same structure, and you also said that the purpose of Albright number 1 was to prove up new reserves rather than validate the existence of -- or rather than validate existing reserves. Were you saying that the Ninilchik number 1 well accessed this same pool? A Yeah, I can handle that. Yeah, the Mobil Ninilchik number 1, which was drilled in ..... COMMISSIONER HEUSSER: The Mobil. A ..... 1964 had what we think are at least three METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~0~ 276-38~ 29 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 rOD. significant pay zones in the well. That's -- my understanding is the well those zones were not tested. Now, in our discussions with the independent reserves certification companies that we normally deal with, if we drill a twin to that well, we basically get no additional reserve credits over what's already probably going to be given to us from that well. If we move the well away from that well, preferably updip to prove up any more additional zones that may come into the gas-water contact, we will get additional reserves from the new well, as well as whatever credit we get from the old well. So by twinning the well, you essentially get one data point rather than two, which give -- which gains you nothing in the reserve certification process. Does that answer your question. COMMISSIONER HEUSSER: Yes, it does. Thank (Pause) COMMISSIONER TAYLOR: Mr. Amodio, are these questions also from David Brimberry? MR. AMODIO: Yes, they are. COMMISSIONER TAYLOR: Okay. Thank you. BY COMMISSIONER HEUSSER: Q Mr. Smith, would you please point out the specific location of the data that went into constructing the METRO COURT REPORTING, IN~ 745 West ~unh Avenue, Su~ 55 Anchorage, Ahs~ 9~01 ~OD 276-38~ 3O 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A Q contours of Unocal's Exhibit Number 1, please? I chose not to show all the seismic data base that we have that went into the map because it makes the maps very cluttered and inconsistent and complicated to understand. But essentially the grid that we have is a rough 2D grid that cuts through the the plane of the section in a northwest to ..... Would you ..... ..... southeast direction. Excuse me, would you use the laser ..... I'm sorry. ..... pointer, please? The 2D grid we have is a mixture of data that generally cuts in this orientation with a few strike lines in various locations around there. So I think point he's trying to get at is the uncertainties of the actual detail of the structure map. And we've had various discussions with Marathon in that regard, and I think we both have pretty good understandings about the possible differences of mapping. But since they haven't introduced their map into evidence, you know, I don't really understand how we can discuss or refute or whatever their questions are. I'm at a point of confusion right now how our map how that's even relevant to our discussion at this point. And I try to METRO COURT REPORTING, INC. ~5 West ~u~h Avenue, Su~ ~5 Anchorage, A~ska 99501 ~0~ 27~3876 31 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 answer your questions, and we can get down to specifics, but ..... This question comes --. .... COMMISSIONER HEUSSER: .... questions before I ask this other one? Q A A Q A Q can I ask more This question comes from me. You mentioned public domain well data. Where are those wells located on your map? Sure. So the Mobil Ninilchik well is located right there. Then Unocal number 1, Ninilchik number 1 well's situated up here in Section number 6. That was similar vintage to the to the Mobil well. These wells originally were drilled targeting the hemlock formation which is quite a bit deeper than the formations that produce the gas. At that time gas was not of any economic interest, so these zones were basically -- of interest now were actually drilled, cased, bypassed, never tested. Again, this is my question. The contours that are south of the southwest/northeast trending fault ..... Uh-huh. This cross fault here. That fault right there. That those contours are derived completely from the seismic information? Primarily, yes. Okay. This next question is from David Brimberry, and METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~o~ 2~-~ 32 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 he asks how are the reserves attributed to the Mobil Ninilchik well without testing? A Well, essentially right now they would not give you that many reserves. Being an engineer yourself, you probably understand this better than I. But once you've drilled a well, logged it with new log suites, tested those zones, the correlative zones you get from that pair of wells would give you more credence or standing with the reserve certification process than having only a old well with a questionable log suite. Does that answer your question. Q I believe so. It answers Mr. Brimberry's question. COMMISSIONER TAYLOR: Mr. Amodio, you had a question earlier, or perhaps it was an observation. I'm not sure. Did you want to pursue a question? MR. AMODIO: I guess we'd like to ask Mr. Tabler to go into a little more detail why this is the only place on there on the lease that they can -- they feel they can drill? A (Mr. Tabler) Do I respond. I guess that question's through the Chair. Yeah, as I indicated in my testimony, this is the best if not the only location on the acreage under control by Unocal which would evaluate the proposed structural objectives. And I say that by virtue of the -- some of the other constraints METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 33 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 that we're we're dealing with. If you look on Exhibit 2, you can see that this line here as I pointed out earlier is a line which would require a Corps of Engineers permit, or Section 404 permit, wetlands permit. It moves you -- moves your -- your location further to the to the west. Anything further east, northeast or east, gets you into problems from a topographical perspective. MOving the well to the south as indicated over here does nothing more than get us closer to existing well bore, and we're trying to get as far way updip as we can to correlate for certification of reserves. If you did locate a well down here, 1,500 feet away from a property line and 1,500 feet away from this line, you move -- it -- the well is moved structurally downdip. It's not in the best geologic location, and would only lead to the increased likelihood of drilling a nonproductive well. So it makes sense to move it as far north -- in fact, we would like to be as close closer here, if not for the wetlands issue right here. There are houses here. There's a proposed house location here. On this property right here and here and here there are a number of cabins that are used for recreational purposes. The access route and corridor to get to a METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 34 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 location down here, assuming we wanted to get down here, would be precluded by this it would be only accessible by this driveway here. Otherwise, we would have to bifurcate a subdivision, and the inherent risk of litigation there is -- is -- is unnecessary. We can avoid that by dealing with a surface owner who has granted us permission to come down here. We've negotiated the ability to -- to access his property from this location. If we were to move north up onto -- even structurally higher up here on this location, you get into a concern about where does this fault lie. Does that fault lie here. Does it lie here. We don't know. We can see -- we can -- we have our best guess. Marathon may have their own picture as to where that fault lies. They may have additional other information. But to drill a well and locate a well over here gets us structurally closer to the fault, and -- and creates a higher risk of fault cut. We believe by drilling here on our -- on this location, it's the best location, and quite possibly the only location that avoids all those concerns I just addressed, and will not run into a geologic risk of cutting this fault, and will give us enough information that we can better locate where that fault is. METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 9~01 00~ 2~-~s~ 35 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 (Whispered conversation) COMMISSIONER TAYLOR: Mr. Amodio, do you have any further questions? MR. AMODIO: Just one or two follow up on Mr. Tablet's most recent comments if I may. I can direct them to the Commission or Mr. Tablet. It's ..... COMMISSIONER TAYLOR: I think you can go ahead and direct them to Mr. Tablet. KEVIN A. TABLER LARRY J. SMITH testified as follows on: CROSS EXA/~INATION BY MR. AMODIO: Q I just wanted to -- the -- and I have no idea of the seismics. I'm this is not my area of expertise. But the -- what you were just describing about the seismic risks, that's based on this information that was developed in 1964 and in the 1960s that Mr. Smith testified about? That's where this information comes from? A (Mr. Smith) Well, like I stated earlier, the information on the map is a composite of information from the 60s, 70s and 80s ..... Q Okay. A ..... that makes a less than perfect grid. Normally on METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~0~ 276-38~ 36 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q A Q A Q a 2D seismic you have a very tight grid. You map everything in very good detail. As in most places here in the Inlet, we have -- always have less than ideal data geometries, but that's basically the compo .... it's a composite of those three different decades of data. I guess I'm still a little confused. Earlier you talked about, okay, the -- where the information about the seismic, where it's located, and you said it's all in the public domain, and it was all located ..... No, the wells. Wells are public domain. Okay. So the seismic that Mr. Tabler was talking about, is that information, is that in the public domain? Most of it is not. Okay. There's no regs in the State of Alaska that require seismic to be released into public domain, so ..... Okay. So I guess the -- I'm trying to understand the seismic. That comes from Unocal's proprietary information? It comes from Unocal's proprietary data base, which is composed of varieties of various sources of data either shot by Unocal, either purchased from other operators. And is that seismic information here today that we can METRO COURT REPORTING, INC. 745 West ~urth Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 37 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A Q A A review it? No. Okay. I didn't see -- I'm sorry, I didn't see the need for getting into that kind of level of detail in the spacing exemption. (Mr. Tabler) Yeah, I'll respond to that. This is Kevin Tabler. We're not here today to discuss the merits of allocation. We're here to ask for a spacing exception, and so the -- if you wanted I believe that that would be a topic in for a future hearing. Well, I understand that. But my -- what I'm trying to understand is your testimony today is that there's no other place, and part of the reason is the seismic risks and the geophysical aspects of it, and so I do think it goes towards that aspect of your testimony. And for us to understand it, we need to be able to assess that. And I think earlier you testified in your testimony that there was some testing seismic information that isn't -- and I've lost my place now. The data has not been processed and returned yet, that is correct, that you're waiting for? That was in your testimony, Mr. Tabler. Right. Okay. METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 38 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A That is correct. Q Okay. A But he's our expert, and he's the one that keeps the records, so I was going to let him answer, but that is correct. Q Okay. And, Mr. Smith, when is it anticipated that that information would be available and returned, that you would have that available? (Mr. Smith) Within a month probably from now. Q Okay. BY COMMISSIONER TAYLOR: Q I have one more question, and, Mr. Tablet, I don't know if it's for you or for Mr. Smith, but the size of that location, what's the surface geographical size or the dimensions? (Mr. Tabler) Of the -- the actual dot, the ..... With ..... ..... pad location. And where the well is. Is that -- is it a separate lease, just that yellow spot? Oh, I see what you're saying. The -- the -- the location is right here. It's that actually -- that -- that 40. The lease in which the well's located on ..... What ..... ..... or the actual pad. METRO COURT REPORTING, INC. 745 West ~uHIt Avenue, Su~ ~5 Anchorage, A~ska 99501 ~0~ 276-38~ A A Q Q Q 39 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q The lease. What are the dimensmons of that lease? I believe that that lease ..... Was that on the actual attachment to the documents, the application? A I'm not sure if it is or not. UNIDENTIFIED VOICE: microphone) 40. A Q A Q (Indiscernible - away from It's a 40 acre. 40 acre. What are the linear dimensions of that? Is it completely square? (Mr. Smith) I believe it is. Okay. (Mr. Tablet) Yes. I don't have it in front of me here, but I believe that to be true, yes. COMMISSIONER TAYLOR: Thank you. Mr. Tabler and Mr. Amodio, if you don't mind, we're going to take about a ten-minute break, and we'll be back in here. We'll be off the record. (Off record - 10:21 a.m.) (On record - 10:54 a.m.) COMMISSIONER TAYLOR: It's approximately five minutes to 11:00, and we apologize. We' re not very good at our ten-minute breaks. Sorry. The Commission doesn't have any further questions for Mr. Tabler. Mr. Amodio, do you -- does Marathon have evidence that they would like to put on, or any METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 4O 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 information they'd like to present? MR. AMODIO: Yes, we do. COMMISSIONER TAYLOR: And would that be in the form of sworn testimony? MR. AMODIO: There will be some sworn testimony, yes. I have a couple of things I'd like to address to the Commission. Shall I do that now or at the end? It doesn't matter to me either way. This would not be in the form of sworn testimony. This would be in the form more of procedural. One procedural issue and some oral arguments about the testimony that Unocal has presented. COMMISSIONER TAYLOR: Whatever your preference. MR. AMODIO: Okay. The I guess the first thing I'd like to point out is that I don't believe that Unocal has made a case for granting an exception here. They've testified that their -- some of their seismic data has not even been processed yet, and hasn't been returned. They -- other testimony was that the location of data was based on some 1964 vintage, and there was a lot of uncertainties attributable to it. The -- our testimony will establish that there is a unitization within that on the other side of that property line that this will have an impact on, and that that's been in the process now for quite a time. It's been negotiated over a period of time, and that this well, although it's been METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 9~01 ~0~ 2~-3876 41 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 described as a merely an exploratory well, I don't think Unocal is only drilling it for exploratory purposes. In other words, we would not object to it if the condition placed on the exception grant were that it could never be used for production of gas, and I don't think that's what Unocal would agree to, but at some point it will be used for production, and it will affect the drainage from the gas reserves and accumulations on the property to the north. And the -- they simply haven't made a case. Mr. Tablet's testimony that it's not an issue of correlative rights I think is somewhat ingenuous, that it in fact is, and that until they've come here and shown what the seismic data proves and how what impact it will have, that there should not be -- the exception should not be granted until they have the additional information. Just on a procedural basis, the regulation requires the party seeking exception to notify by -- send notice of the application by certified mail to the owners and landowners and operators, and this I'm reading is from 20 AAC 25.055. I assume that Unocal has proof they did that. We did not -- we don't know that we received it, and I can't tell you that we didn't receive the appropriate notice, but presumably if they sent it certified mail, they will have that. I can tell you we don't think we received it. We could not find it. Marathon has no evidence that they received the appropriate notice under METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 42 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that regulation. At this time I would like to have Mr. David Brimberry come up and present some testimony on behalf of Marathon. COMMISSIONER TAYLOR: Mr. Brimberry, do you wish to give sworn testimony? MR. BRIMBERRY: Yes. COMMISSIONER TAYLOR: Would you please raise your right hand? (Oath administered) MR. BRIMBERRY: Yes, I do. DAVID LEE BRIMBERRY having been first duly sworn under Oath, testified as follows on examination: DIRECT EXAMINATION COMMISSIONER TAYLOR: Would you please state your name and spell your last name so that the court reporter has that? A Okay. David Lee Brimberry, B-r-i-m-b-e-r-r-y. Can I use this laser here. MR. TABLER: It'll cost you. A Okay. I just won't point it at you. COMMISSIONER TAYLOR: Go ahead, Mr. Brimsberry. A Okay. We have I think I can work from these maps right here in terms of what I -- Marathon tends to understand about the area. We, too, have a grid of METRO COURT REPORTING, INC. ~5 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 43 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 seismic in here which my understanding is, is that it may be better than what Unocal has. And our our interpretations do differ. However, this fault that Mr. Smith has drawn in here has a similar trend, but we do depict -- we would understand that fault to be different, and to the point that a location, the legal location so to speak without exception for this property right here could be drilled. And so our -- this location here would in fact encroach upon our correlative rights across there by being that close. And to be justly handled between these two 640 basically state properties, or state spacings, that this well should be required to be pushed back 1,500 feet from the lease line. The -- the structure map that he has depicted here does indeed. I think he's rightly so in saying that there is a fair amount of uncertainty in what has been drawn. And so this contour here may indeed be pulled back to where some -- I have seen interpretations where they would not be that far downdip. However, we believe that this -- from our interpretation, everything is downdip from this fault right here. He has -- he has reflected some -- on his map he has reflected some west dip, and these are surf- -- and I'm assuming these are surface dips that are depicted at METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~o~ 2~-~s~ 44 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 the coastline, and in fact on that coastline there are east dips that we have witnessed in the field. So we would understand this to be mapped differently, and that we would have the legal location within this section here and would be able to drain under the -- without any exceptions, and do that without -- with really a fair -- within reason, not the risk that's being attributed to this location here. The second item that I want to address is, is that we have information from Kenai Gas Field, which is not on this map, but if you go, you know, 40 miles up or so to the north, that these Tyonek sands that are seen in the Mobil Ninilchik well right here, these Tyonek sands have a reservoir extent of some place between this -- with similar ones that are shown here in the Mobil Ninilchik well. They have a reservoir extent of over 600 acres to as much as 1,200 acres, and so a well here would be in fact contacting sand and reservoir that would be updip of this particular location, and again drawing gas from -- from a lease in -- the leases in Section 13. So that's that's some general statements of un- -- of our understanding of these types of reservoirs, and also our understanding of the structure itself. We do not have any data in the context of being acquired or processed right now METRO COURT REPORTING, INC. ~5 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~0~ 276-38~ 45 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 because we feel that our data is sufficient to make the interpretation here right now. Any other comments that I would make in this area I think would have to be left to confidential statements, and we'd probably request -- I don't -- just to the larger part would not be a problem for Unocal to be here, but others would. So -- and I don't want to make those statements now. COMMISSIONER TAYLOR: Mr. Brimberry, with respect to the confidential information that you are referring to, the Commission can go into an in camera session if you want that information on the record. If you don't want that to be part of this record, then -- if you'd just let ms know what your wishes are? MR. AMODIO: If I may address that question, Commissioner, pardon me. We anticipated that we would need -- we may have needed to close these proceedings to present that, but based on what Unocal has not presented, that is, geological information, seismic information, we don't feel it's necessary at this point. We don't think there's any ..... A Yeah, I would agree. COMMISSIONER TAYLOR: Okay. Commissioner Heusser, do you have any questions of Mr. Brimberry? COMMISSIONER HEUSSER: Yes, I do. BY COMMISSIONER HEUSSER: METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 OOD 2~-38~ 46 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q You were just using Unocal's interpretation and describing Marathon's different interpretation. Why didn't Marathon bring their own interpretation today? A Well, we could present ours. However, I think as our attorney has said that we do not necessarily need to present that unless -- I don't think we need to put that ..... MR. AMODIO: I'm sorry, Commissioner Heusser. Your question was? We think that the information that Unocal has -- what they're saying is the seismic information, they either don't have it or they haven't collected it, that they haven't it felt it necessary to present that, so we're concerned to present the information that we have developed that's proprietary in nature, when basically there's a vacuum on their side. Ail they're showing us is maps and information that's either in the process of being there's an absence of information if you will from their side. Okay? COMMISSIONER HEUSSER: Okay. Q I have a second question. You -- Mr. Brimberry, you made a statement that the sands that were encountered in the Mobil Ninilchik well are similar or the same as those in the Kenai gas fields. And again -- and you suggest that the area extent of these sands is somewheres between 600 and 1,200 acres. Given that I believe all of that information is public domain, why METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 99501 ~0~ 276-38~ 47 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 didn't Marathon bring those log correlations today? A I think because the understanding is pretty -- pretty well established through transient data in the reserves there that that's the case. We have brought some correlations of other wells, and I can show the distribution of those along -- I would I would not mind showing those further up the coast here, but we -- that would go into the confidential status. Q But again, the wells from the Kenai gas fields and the Mobil Ninilchik well, none of that is confidential? A No, it is not. Q Okay. And you didn't feel like it was useful to illustrate part of your testimony today? A Actually, I thought it would have been -- been until Unocal hadn't really provided anything to -- to substantiate theirs. (Whispered conversation) COMMISSIONER TAYLOR: Mr. Amodio, is Mr. -- are you finished with what you were going to -- your testimony? MR. AMODIO: We do have additional information, but I -- from what we've seen presented so far, basically Unocal's position is it's not relevant and they haven't had to show it. They haven't produced information that would be of similar nature. They've just talked generally about this and why they can't move this direction or that direction because METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 48 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 they think there would be the greater seismic risks without showing what these seismic structure and underlying -- what that information shows. I don't we're not the Applicants. I don't see where we have to make a case to the contrary when they have failed to make it (indiscernible). But we do have other information. We just don't think that there's any -- there's nothing yet to rebut, and that's what our information would go to. COMMISSIONER TAYLOR: Okay. Are there any questions from the audience for Mr. Brimberry? And if so, if they could be passed to Commission representatives. Mr. Tabler, did you have any questions that you would want to ask of Mr. Brimberry? MR. TABLER: No, I don't have any specific questions. I will have some follow-up comments though. COMMISSIONER TAYLOR: That would be fine. I don't see any other questions coming forward. Mr. Amodio, do you have any other witnesses who would want to testify, or any other comments that you would like to put on the record? MR. AMODIO: I don't think we have any more witnesses. If the Commission feels that it -- this -- our information -- we are prepared. We came prepared to provide additional information. We just didn't see the basis for it, to prove a case when we're not the applicant. I mean, basically it's their burden to move forward with that. I would METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~ska 9~01 ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 say the minimum any decision should be postponed until the -- their seismic information is available in 30 days. And then we can reconvene, and at that time have a full airing of both sides with their information and ours, but I guess I didn't -- it seems to me both unnecessary and inefficient if you will. COMMISSIONER TAYLOR: Okay. Thank you. Mr. Tabor, did you have some additional comments you would like to make? MR. TABLER: Yes. First off we -- I do have another witness. It's responsive to the comment by Mr. Amodio that constructive -- or that notice had not been given. Would that be appropriate at this time to have ..... COMMISSIONER TAYLOR: That would be fine. MR. TABLER: I'd call Shannon Martin. COMMISSIONER TAYLOR: Mr. Martin, do you wish to give sworn testimony? MR. MARTIN: Yes, I do. COMMISSIONER TAYLOR: Would you raise your right hand, please? (Oath administered) MR. MARTIN: Yes, I do. SHANNON MARTIN having been first duly sworn under Oath, testified as follows on examination: DIRECT EXAMINATION METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 5O 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 COMMISSIONER TAYLOR: Would you please state your full name and spell your last name for the court reporter? A Yes. My name is Shannon Windell Martin. Commissioners, I'd like to preface my testimony with the fact that I am an attorney. I obviously have a duty personally and professionally to tell the truth, to speak with the utmost veracity, maintain the integrity and honor of my profession. Obviously, at the risk of exposing myself to moral turpitude, I'd like to testify to the fact that good faith efforts were made to notify Marathon of this spacing exception. I'd like to point to Exhibit A-1 of the attachment to the actual spacing exception. Exhibit A-1 indicates spacing exception -- do you have this in front of you, Commissioners. COMMISSIONER HEUSSER: Yes. COMMISSIONER TAYLOR: We have a copy. A Okay. Exhibit A-1 to the spacing exception notice indicateS"~"~land owners, owners and operators who were to be notified. In this table, of course, Marathon is one of the affected owners and/or operators that were to be notified. Evidently it came to our attention later that they were not notified. Although this may seem highly unlikely and in bad faith, I testify today that that was not a bad faith inadvertent -- inadvertent METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 51 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 lack of notification. Not only did we make best efforts, I would argue today that Marathon was given constructive notice of this spacing exception. That's basically all I had, Commissioners. Do you have any questions for me. COMMISSIONER TAYLOR: wait just one second? A Sure. COMMISSIONER TAYLOR: application. A We may if you could just I'm reviewing the Sure. The boiler plate letter that I attached, and I myself personally did this mailing, the boiler plate letter was the letter that was sent out vis-a-vis a certified mailing, and was done through a software program of sending out to a large number of landowners. COMMISSIONER TAYLOR: Does Exhibit A describe all the landowners that were served by certified mail? A Exhibit ..... COMMISSIONER TAYLOR: Which is ..... A ..... A-1 -- if you look at Exhibit A, Exhibit A would indicate the 3,000-foot radius where Unocal's required to notify all the affected owners, landowners, and operators per statute, per reg. A-1 then is a table that I created indicating who the affected owners, landowners, and operators are within that 3,000-foot METRO COURT REPORTING, INC. 745 West ~u~It Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 52 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 radius. Marathon, of course, is one. And you can see on tract number 28 on page 2 of Exhibit A-I, Marathon is an affected operator or lessee under a Walter Wilson lease. Also on tract 39, Marathon is an affected lessee-slash-operator of a state lease, ADL 384372. Apparently, in the mailing that was attempted to be done, this particular column wasn't formatted to pick up Marathon. (Pause) COMMISSIONER TAYLOR: Mr. Martin, on this Exhibit A-i, which column represents the people who would have been mailed notice of this hearing and an application -- copy of the application? A Okay. MR. AMODIO: Let me interrupt for just a moment. I -- we do not have a copy of the exhibit. I called yesterday and spoke with someone at the Commission staff who told me that the only thing that was one page, or I understood her to say one-page application like a letter saying please allow the exception. Can we get a copy of that? COMMISSIONER TAYLOR: We'll make a copy of this right now for you. MR. AMODIO: Thank you very much. Sorry for the disrupti'on. (Pause) METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 53 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 COMMISSIONER HEUSSER: Mr. Martin, when did you actually -- when did Unocal actually find out that Marathon had not been notified? A I -- I just found this out yesterday. And Kevin Tabler indicated to me that he spoke with Brock Briddle (ph) at Marathon, and Brock had indicated to Kevin that Marathon had not received this notification. I then went back and looked at the files and the certified -- list of certified recipients that were mailed, and noticed that Marathon had not been notified. And that was yesterday, less than 24 hours ago. Commissioner, I would just indicate that there's been numerous discussions over the past 30 days or more, 60 days since this exception was submitted, to the substance of the exception. COMMISSIONER TAYLOR: Mr. Martin, have you checked your records to see -- to confirm that all other parties or all other people who are on the list there were notified? A Yes, I have. As soon as Marathon has the copy in their hands, I'll indicate -- I'll respond to your question. Not to belabor the point, but I'll just address the letter that was sent to the AOGCC, Mr. Dan Seamount, requesting an application for a spacing exception. The first attachment to that was a letter, a boiler plate METRO COURT R'EPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 ~0~ 276-38~ 54 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 letter dated April 12th, 2001, notifying all affected landowners, owners and operators within a 3,000-foot radius of the proposed Albright number 1 location. Thereafter attached would be Exhibit A-1 to the plat indicating the table of affected owners, landowners, and operators per 20 AAC 25.055(d) (1). Landowners are all affected subsurface owners. Owners would be the owner of the drilling rights. Operators would be obviously the operator of the well. In this particular table, operators are indicated as Unocal, and Marathon is indicated on a couple of those particular leases. Mineral owner 1 would be a landowner under the regs. Similarly, mineral owner number 2 would be a landowner, and similarly mineral owner number 3 would be a landowner. Therefore, I notified, or the attempt and good faith attempt was to notify all operators and mineral owners under this table. COMMISSIONER HEUSSER: Mr. Amodio, when did Marathon find out about the proposed spacing exception? MR. AMODIO: We received notice from the Commission -- I have a copy of it here. (Indiscernible) Commission notice. COURT REPORTER: Your microphone, sir. MR. AMODIO: I was fine. Sorry. We received -- I have it here in my file. It was the Commission's METRO COURT REPORTING, IN~ ~5 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 9~01 ~0~ 27~38~ 55 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 -- the one published April 24th. I believe we got a copy of that. And then I think there might have been a revised one. So we did get a copy of the Commission's. COMMISSIONER TAYLOR: Mr. Amodio, do you have any questions for Mr. Martin? SHANNON MARTIN testified as follows on: CROSS EXAMINATION BY MR. AMODIO: Q Just so I understand, and I've only now been looking at the exhibit, the -- after the print out is this three pages, has a post mark on it, total number of pieces listed by sender.' Does this -- this is showing that they were sent certified just for the reconciliation that all -- everyone that's on these lists received notification? A Yes. Q Okay. But due to some oversight, Marathon was not included on that? It's on here, but not on the ..... A That's correct. Q And have you -- you've gone back and checked over that to make sure all others that are on these printout' received it? A Yeah, it's it's my understanding at this juncture that everyone has been notified. METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 9~01 ~0~ 276-38~ 56 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q Yeah. Okay. Marathon was left off. MR. AMODIO: I have no further questions. MR. TABLER: Continue? COMMISSIONER TAYLOR: Do you want to continue? MR. TABLER: Okay. COMMISSIONER TAYLOR: Do you want to continue? MR. TABLER: Yes. Thank you, Shannon. Okay. I think I addressed the -- one of the con- -- that was an attempt to address the concern that we raised about notification, and that inadvertent failure to get them notified, a technical notification. I guess why we are here today is that we're asking -- we're not asking anyone for help in locating a well. Unocal is quite capable of picking a location. This is an exploratory well location. At this time we're not asking for any financial contribution. There are no correlative rights issues here. Correlative -- we don't dispute the fact that there may be allocation issues at some future date, and that would be the subject of either another hearing, or would be addressed through unitization or some other agreed upon mechanism, between the parties at such time as Unocal would like to produce the Well. No, we are not drilling an expendable exploratory well. METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~OD 2~-38~ 57 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 That's not the intent. What we are doing is drilling an exploratory well to help prove up reserves in support of a pipeline. The location that was selected is in fact a location -- no matter where we move that location 1,500 feet from a property line to the south, to the north, to the east, to the west, there will be affected property landowners by definition of landowner because the subsurface estate will be different -- or different landowners. Unocal does have a lease on the acreage. Can I have that steel (ph) back here. Unocal does have leases on this property here that's in yellow. However, each one of these are separate subsurface owners, so we will be -- we'll be right back in here asking for a spacing exception no matter where we move that. The -- we were not prepared today, nor did we think it necessary to provide a geologic discussion or debate on the geology, other than the fact that Unocal believes in its interpretation that this location is the optimum location on acreage on which Unocal controls. We do believe that there is enough information to prove that it is structurally higher than anything to the south, so moving in a location southerly to get away from this boundary line here, which is the area of dispute right now, accomplishes nothing more than causing and forcing Unocal to drill perhaps a nonproductive well, twinning this well, and providing no additional value or data. So by the METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~ska 9~01 ~o~ 58 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 non-granting of an exception merely to drill an exploratory well and test the well, obviously Unocal would be -- lose the opportunity to prove up additional reserves which will be required to build a pipeline. You don't have a pipeline until you drill wells and certify reserves to get financing for a pipeline. That's the dilemma we're in. The -- we do believe that a well location here will give us a better handle. It'll be another data point on this structural fault, and that through testing procedures, we will be able to have a better handle on how far and where that fault is. And as I'd indicated earlier, this is a -- well, I don't know if I did indicate, but I'll indicate now that we don't -- we see no regulation requiring a drilling unit be required prior to the drilling of an exploratory well in the regulations. We do believe that we've met the criteria under 31.05.100(b) on a number of points. Topographically, the risk of drilling a nonproductive well, and we've addressed the -- creating an advantage to any -- or I guess let me just read it. If granted, the Commission will take such action by reason of the drilling of a well as an exception, and so that drainage from developed units to the tract with respect to which the exception will be prevented or minimized. We've eliminated that opportunity or possibility by virtue of not asking to METRO COURT REPORTING, IN~ 745 West ~u~h Avenue, Su~ ~5 Anchorage, A~s~ 99501 ~oD 2~-~ 59 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 produce the well at this time. At such time as we have proved up enough reserves to warrant a pipeline, and it's then appropriate that the pipeline will be built, we then well come back in, and by that time if the parties have not voluntarily to an allocation of production, if unitization has not solved the problem, then at that time we would be -- come back in and ask, and we would have this the geological discussion and debate. But we will have a lot more information at that time. But the time sensitive nature of this pipeline doesn't allow us the -- and also the rig commitment that we have, allow us the time to sit back and delay the drilling of this well. So we're here today to ask for exception to do that. I think we've demonstrated that. COMMISSIONER TAYLOR: Thank you, Mr. Tabler. Mr. Tabler, do you want Exhibit -- and I believe that was -- what did we say, 1 and 2, admitted into the record? MR. TABLER: That would be fine. Yes. COMMISSIONER TAYLOR: Mr. Amodio, do you have any objection to those being admitted into evidence? MR. AMODIO: No. COMMISSIONER TAYLOR: Exhibits 1 and 2 from Unocal will be admitted into evidence. (Unocal Exhibits 1 and 2 admitted) COMMISSIONER TAYLOR: Mr. Amodio, does Marathon have anything else? METRO COURT REPORTING, INC. 745 West ~u~h Avenue, Su~ 55 Anchorage, A~s~ 99501 6O 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 MR. AMODIO: No, I think we've pretty much said what we're going to say. COMMISSIONER TAYLOR: Okay. And, Mr. Tablet, you're all done? MR. TABLER: Excuse me? COMMISSIONER TAYLOR: Are you all done also? MR. TABLER: Yes, ma'am. Yes. COMMISSIONER TAYLOR: Okay. Thank you very much. The Commission will take this under advisement and will be issuing a written decision. We'll be off the record. (Off record - 11:33 a.m) *** END OF PROCEEDINGS *** METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 61 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 CERTIFICATE UNITED STATES OF AMERICA) )SS. STATE OF ALASKA ) I, Laura Ferro, Notary Public in and for the State of Alaska, and Reporter for Metro Court Reporting, do hereby certify: That the foregoing Alaska Oil & Gas Conservation Public Commission Public Hearing was taken before Meredith Downing on the 28th day of June 2001, commencing at the hour of 9:00 o'clock a.m., at the offices of Alaska Oil & Gas Conservation Commission, 333 West Seventh Avenue, Suite 100, Anchorage, Alaska; That the meeting was transcribed by Meredith Downing to the best of her knowledge and ability. IN WITNESS WHEREOF, I have hereto set my hand and affixed my seal this 10th day of July 2001. NOtary Public My commission expires: 06/03/05 METRO COURT REPORTING, INC. 745 West Fourth Avenue, Suite 425 Anchorage, Alaska 99501 (907) 276-3876 #9 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 UNOCAL CORPORATION SOUTH NINILCHIK DRILLING PAD ALBRIGHT #1 WELL SPACING EXCEPTION PUBLIC HEARING NAME - AFFILIATION TELEPHONE (PLEASE PRINT) #8 UNOCAL Alaska Resources To-' Mr. Bob Crandall, Senior Geologist Alaska Oil & Gas Conservation Commission 333 West 7th Ave., Ste. 100 Anchorage, Alaska 99501 Cc: Robert Watkins, DEC D. Buthman, Unocal Geologist 7/5/2001 Oil Spill Contingency Plan Exemption, Unocal #1-Albright We request oil spill contingenCy exemption for the following exploratory well at our South Ninilchik Prospect: Proposed New Drill Well to Commence Permitting: Unocal #1 Albright Location: 2277' FVVL, 550' FNL of Section 24, TlS, R14W. Proposed Total Depth: 8,500' Reservoir Objectives: gas in Beluga and Tyonek Formation Sandstones #7 ALASKA OIL AND GAS CONSERVA~I~ION COP~ISSION TONY KNOWLES, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Cammy Oechsli Taylor Commissioner Designated Ethics Supervisor Alaska Oil & Gas Conservation Commission 333 W. 7th Ave. Suite 100 Anchorage, Alaska 99501 June 26, 2001 Re: Potential Ethics Violation-Unocal Spacing Exception Dear Commissioner Taylor: Unocal has applied for a spacing exception for their Albright #1 Well on Unocal Lease #1030649. Marathon Oil Company has objected to the application and a heating has been scheduled for June 28, 2001. My involvement in any decision pertaining to the matter may be a violation of the State of Alaska Executive Branch Ethics Act for any or all of the following reasons: 1. I worked for Marathon Oil Co. in the Rocky Mountains from 1981 .until 1988. 2. I resigned from Marathon and worked for Unocal from 1988 until 2001. 3, From 1997, until I was appointed AOGCC Commissioner, I worked on a team, Which developed gas prospects in Cook Inlet. One of the last prospects that I was involved with was the Ninilchik Dome where the proposed subject well is located. Unocal management asked me if we shOUld acquire acreage on the Dome. I constructed some maps and l'ooked at logs and.then said that we should acquire the acreage. Shortly after, I resigned from the company. 4. During my employment with UnOcal, all of my 401-K retirement account consisted of Unocal stock. I still have the account and have not diveSted 4000 to 5000 shares of Unocal stock, PresentlY valued at apProximately $35.00/share. 5. I also have options on about 500 shares of'Unocal stock. Please render a decision as to whether you believe that my involvement would be a violation of the Ethics Act. ' ~Daniel T.;Seamount Jr. Commissioner Alaska Oil & Gas Conservation Commission CC; Robert Mintz State of Alaska Assistant AttorneY General #6 STATE OF ALASKA ~[ NOTICE TO PUBLISHER ~'~, ADVERTISING ORDE, R NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFF,DAV,T OF PUBL,CAT,ON IP^"T2 Or ,",S fOR,)W,TH A ACHED COP Or AO'02114019 ORDER ADVERTISEMENT MUST BE SUBMIT[ED WITH INVOICE .SEE BOTTOM FO,R. IN .V01CE .ADDRESS.. , AOGCC AGENCY CONTACT DATE OF A.O. F R 333 W 7thAve, Ste 100 Jody Colombie Max/7, 2001 o Anchorage, AK 99501 PHONE PCN M - (907~ 793 -1221 fiATE~ ADVERTISEMENT REQUIRED: X Anchorage Daily News May 8, 2001 o P O Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement IX] Legal I I Display ~ Classified r--IOther (Specify) SEE ATTACHED PUBLIC HEARING NOTICE I ITOTAL OF !'i:g:END INV~31CE::IN.TRIPI:iCATE'.! AOGCC, 333 W. 7th Ave., Suite 100 PAGE1 OF ALL PAGES$ i!.i;i.' ";~:i" '.'"" :: ![..::::..:"!. :. ~?.:i:.:i,~0!.':: :?:'.'.i;' :,'i" :: :~ i. :.:.. ':~ :.'..1 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 LIQ 1 01 02140100 73540 2 3 .... 4 REQMiS. ITIO,NED B~~/_~_/~_~x~ ( i.~~/ D l SION AP PR VAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 5/9/2001 AD # DATE PO PRICE OTHER OTHER GRAND ACCOUNT PER DAY CHARGES CHARGES #2 TOTAL 868223 05/08/2001 02114019 'STOF0330 $95.76 $0.00 $0.00 $0.00 $0.00 $95.76 $0.00 $0.00 $95.76 $o.oo REe -rVED STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Alexie, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all sai~l time was printed in an office maintained at the aforesaid place of publication of said newspaPer'. That'the anneXe~l is a copy of an advertisement as it was published in regular issues(and-riot in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of safd period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. ' Signed Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: /o.O ~/~/ ',i"'"" , ,',Notice of' ' ', PubliC: Hearing' '"', STA'rE OF in'g PC,9 :' '-~, I~;",-,,h'~ "* ' ','.'..-'' ,'~'noc;~ ...':....,.: '!,+ '?:.:'~ . C'.I,'I'(:',"? _"¥ {;il~." .', ~: -.. . ,- ~:,, , . ,, :;;., , · :l,.:",t; C :-' ':~" :,°;,:. ~ : C ." · 1".,, :,: b.':,:-'C' I'4 ':~i.!i,:l"';~ · 1~,";'~,",'::'1::~i .'. '"; ~',) .', ".:,,' ?: ': ,; 5 :. ; -: - :: -; .,,: ~ · 'f.":"':*'""',' '3,"',~ ' '.'C.'i ",', .!"i' ,'.'.:, ... '",r '5:': ;;":l :," · "' (" ,'!',', ':rjr' ,' ."C -",,, ...:,:. ;',:, ... ;., :'..:;;'.. ::: 11 t""L" .,",' %,,, ,' Cation '2277,q: ~rom the, west 1 !ihe; 550',:trom the north I~in e ;' Sec f, ion ,2 4, 'T 1,$, t . R14~ $'e'ward '~eridian., ,:,, :~. ,,, , ,, ! , , ~ , , , ,, ,' :T'he ~ommi'~sion hal Set'} ,e. n::b'~c ke.'?,ri"q or Jone .%0"'. ':~m::~l ~C,"r'~. .¥,'('r of ~ '~ 'J '~ '" ;:'"~ '" ":': '" ""' '" ue; ,I .c. :, .,... ,,, ,...,',n<, .,: -?. ,~e~ ,.m;t.,K'.. v'-:.. "':,-':~,',' on~ ,.: .~.-:,,:. .....: ..... ':mit,i :'W:ritten C°mments i !,.'"2.TM ,':' ':'.? "= ' "~" ':;.--. '.' '".....';,~::" 5."".'"~'. Fi ,~,', ,~ ~.'.~,,~.-,r.Cr (: ,. ~.: ,,'. '"'"~.~.;."'?" ,%1" .'..'.%" '~' /'i-."~-':. s:':;5 ~.'.":" .';. ~',fi[t:;r';,,,,,~ .; ~,,~,~ I~: I :~..,' .,: .~1 .., '...{..., '.'d ' '' :" 'This notie'~ Supersedes · the previous public no- rice in this matter. The · Public hearing will tare place On 'Juhe ~8; ~001, not June 19., 2001 ~s pre¥i- oustt' b'n ti'bu n~:ed. If:yoiJ.are a Person with a. dl.s.~bii, l.t¥ who may, need 'a special modifico- lion 'In order fo camment or to offend the Public hearirlg, please contact .~ Jod,/Colombie of 793-12'21 ~ befor.r ;Jiune 18, ~100]. /s/C ;'.lm~ Tay or Ch~;'. ' Alaska Oil and G.as (' mservotion , ~mission AMENDED Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease #1030649 Union Oil Company of Califomia by letter dated April 17, 2001 has requested an order allowing a spacing exception in accordance with 20 AAC 25.055(a)(2) for an exploratory gas well to be drilled within 1500 feet of the property line. The vertical well will be drilled from a surface location 2277' from the west line, 550' from the north line, Section 24, T1 S, R14W, Seward Meridian. The Commission has set a public hearing on June 28, 2001 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. In addition a person may submit written comments regarding the spacing exception prior to June 28, 2001 to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. This notice superseded the previous public notice in this matter. The public hearing will take place on June 28, 2001, not June 19, 2001 as previously announced. 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 June 20, 2001. ~r, Chai~'~r Alaska Oil and Gas Conservation Commission Published May 8, 2001 ADN AO# AO-02114019 STATE OF ALASKA [ NOTICE TO PUBLISHER { ADVERTISING ORDER NO. ADVERTISING ~NVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFF,DAV,T OF PUBL,C^T,ON I"~"' 2 Or ~,S ~ORMI W,TH ^TTACHED COP~ Or AO'021 I 401 9 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE,BOTtOM FOE"INVOICE AODRESS AOGcc AGENCY CONTACT DATE OF A.O. F ~ 333 West 7~ Avenue, Suite 100 Jodv Colombie May 7. 2001 o ~chorage, ~ 99501 PHOflE M - (907~ 793 -1221 x ~ ~chorage D~ly News May 8, 2001 o 'P O Box 149001 ~chorage, ~ 99514 ~z ~x~m~ ~z~zz. x.z ~o~z ~l.~S ~usx ~ vm~xz~ ENTI~ ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: ~nited statos of ~merica State of ss IRVOIGfi MOST Bfi I~ IRI~[ICAIfi ~ MUST division, lHfi ADVfiRIISIRG ORDfiR ~HM~ER. A GfiRllFlfi~ GO~Y OF THIS AFFIDAVIT OF Before me, the undersioned, a nota~ public this day personally appeared M~81 Bfi SHBMI~ED WIIH IH[ ~TT~H ~ROOF OF ~HBLI~TIO~ H~R~. who, beino first duly sworn, accordin~ to law, says that he/she is the of ~ublishod at in said division and state of and that the adve~isement, of which the annexed is a true copy, was published in said publication on tho day of 200~, and thereafter for consecutive days, the last publication appearin~ on the ~ day of ,200~, and that the rate char~ed' thereon is not in excess of the rate char~ed private individuals. Subscribed and sworn to before me This day of 200~, ~ota~ public for state of My commission oxpiros 02~901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER AMENDED Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease #1030649 Union Oil Company of Califomia by letter dated April 17, 2001 has requested an order allowing a spacing exception in accordance with 20 AAC 25.055(a)(2)for an exploratory gas well to be drilled within 1500 feet of the property line. The vertical well will be drilled from a surface location 2277' from the west line, 550' from the north line, Section 24, TiS, R14W, Seward Meridian. The Commission has set a public hearing on June 28, 2001 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. In addition a person may submit written comments regarding the spacing exception prior to June 28, 2001 to the Alaska' Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. This notice sUperseded the previous public notice in this matter. The public hearing will take place on June 28, 2001, not June 19, 2001 as previously announced. 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 June 20, 2001. ~r, Chair Alaska Oil and Gas Conservation Commission Published May 8, 2001 ADN AO# AO-02114019 ~ certif~ that on ~;' --',,vt _ a copy of the above was faxed/malled to each of the fo. llqwing at the'~ addresses of record: d,~',/7 ~c:'a~ d._: ~ . Re: AMENDED / Notice of Public Hearing / Alaska Oil aSn~TasEcOOFnsAeLrvAatSiOI~n Commi / / South Ninilchik Drilling Pad, Albright gl Well // Unocal Lease gl 030649 // / Union Oil Company of California by letter date~Y/April 17, 2001 has requested an order allowing a spacing exception in accordance yqith 20 AAC 25.055(a)(2) for an exploratory gas well to be drilled within 1500 feet o~the property line. The vertical well will be drilled from a surface location 2277' from/t~e west line, 550' from the north line, Section 24, TlS, R14W, Seward Meridian. // / A person may submit written commen~s regarding the requested revision prior to 28, 2001 at the Alaska Oil and Gas/ConservatiOn Commission at 333 West 7th June Avenue, Suite 100, Anchorage, Alaska 9/9501./ In addition, the Commission has set a public hearing on June 28, 2001 at 99:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, ~i~ite 100, Anchorage, Alaska 99501. / If you are a person witha ~l~ty who may need a special modification in order to comment or to attend the p hearing, please contact Jody Colombie at 793-1221 before June 20, 2001. / / . \~,~j~ Cammy Ta~hor, Chair / Oil and gas Conservation Commission Published May 8, 200~ ADN AO# AO-0211/4019 / / / / / / / / of the above was faxed/mail~l to each of the fo, lloxwing at ~eir addresses of record: ~'. ~ .Z~'~'-~ ~ . . AMENDED Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commis Re' South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease #1030649 Union Oil Company of Califomia by dated April 17, 2001 has requested an order allowing a spacing exception in with 20 AAC 25.055(a)(2) for an exploratory gas well to be drilled within 1 feet of the property line. The vertical well will be drilled from a surface location ' from the west line, 550' from the north line, Section 24, T1 S, R14W, Seward A person may submit comments regarding the requested revision prior to June 28, 2001 at the Alaska and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Alaska 99501. In addition, the Commission has set a public hearing on June 2I at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 Avenue, Suite 100, Anchorage, Alaska 99501. If you are a to comment or to before June 20, )1. May 8, 2001 ADN AO# AO-02114019 with a disability who may need a special modification in order the public hearing, please contact Jody Colombie at 793-1221 Cammy Taylor, Chair Oil and gas Conservation Commission PIRA ENERGY GROUP, LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 NY PUBLIC LIBRARY DIV E, GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 OFFICE OF THE GOVERNOR, JOHN KATZ STE 518 444 N CAPITOL NW WASHINGTON, DC 20001 ARENT FOX KINTNER PLOTKIN KAHN, LIBRARY WASHINGTON SQ BLDG 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV, CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 LIBRARY OF CONGRESS, STATE DOCUMENT SECTION EXCH & GIFT DIV 10 FIRST ST SE WASHINGTON, DC 20540 U S DEPT OF ENERGY, PHYLLIS MARTIN MS EI823 1000 INDEPENDENCE SW WASHINGTON, DC 20585 TECHSYS CORP, BRANDY KERNS PO BOX8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY, LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DPC, DANIEL DONKEL 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES, OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A, LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 ILLINOIS STATE GEOL SURV, LIBRARY 469 NATURAL RESOURCES BLDG 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY, SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 , ALFRED JAMES III 107 N MARKET STE 1000 WICHITA, KS 67202-1811 CROSS TIMBERS OPERATIONS, SUSAN LILLY 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 MURPHY E&P CO, ROBERT F SAWYER P O BOX61780 NEW ORLEANS, LA 70161 IOGCC, P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 UNIV OF ARKANSAS, SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 RE MCMILLEN CONSULTGEOL 202 E 16TH ST OWASSO, OK 74055-4905 OIL & GAS JOURNAL, LAURA BELL P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOC., INC., LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 , BAPI RAJU 335 PINYON LN COPPELL, TX 75019 US DEPT OF ENERGY, ENERGY INFORMATION ADMINISTRATION MIR YOUSUFUDDIN 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 DEGOLYER & MACNAUGHTON, MIDCONTINENT DIVISION ONE ENERGY SQ, STE 400 4925 GREENVILLE AVE DALLAS, TX 75206-4083 STANDARD AMERICAN OIL CO, Al GRIFFITH P O BOX 370 GRANBURY, TX 76048 CROSS TIMBERS OIL COMPANY, MARY JONES 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 SHELL WESTERN E&P INC, G.S. NADY P O BOX 576 HOUSTON, TX 77001-0574 H J GRUY, ATTN: ROBERT RASOR 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 ENERGY GRAPHICS, MARTY LINGNER 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 PURVIN & GERTZ INC, LIBRARY 2150 TEXAS COMMERCE TWR 600 TRAVIS ST HOUSTON, TX 77002-2979 , RAY TYSON 2016 MAIN #1415 HOUSTON, TX 77002-8844 CHEVRON, PAUL WALKER 1301 MCKINNEY RM 1750 HOUSTON TX 77010 OIL & GAS JOURNAL, BOB WILLIAMS 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 PETRAL CONSULTING CO, DANIEL L LIPPE 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON. TX 77083 MARATHON OIL CO, GEORGE ROTHSCHILD JR RM 2537 P O BOX 4813 HOUSTON, TX 77210 UNOCAL, REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLORATION CO., T E ALFORD P O BOX 4778 HOUSTON. TX 77210-4778 EXXON EXPLOR CO, LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 CHEVRON USA INC., ALASKA DIVISION ATTN: CORRY WOOLINGTON P O BOX 1635 HOUSTON, TX 77251 PETR INFO, DAVID PHILLIPS P O BOX 1702 HOUSTON TX 77251-1702 PHILLIPS PETR CO, ALASKA LAND MGR P O BOX 1967 HOUSTON, TX 77251-1967 PHILLIPS PETROLEUM COMPANY, W ALLEN .HUCKABAY PO BOX 1967 HOUSTON, TX 77251-1967 WORLD OIL, DONNA WILLIAMS P O BOX 2608 HOUSTON TX 77252 EXXONMOBIL PRODUCTION COMPANY, J W KIKER ROOM 2086 P O BOX 2180 HOUSTON, TX 77252-2180 EXXONMOBIL PRODUCTION COMPANY, GARY M ROBERTS RM 3039 P O BOX 2180 HOUSTON, TX 77252-2180 PENNZOIL E&P, WILL D MCCROCKLIN POBOX2967 . HOUSTON TX 77252-2967 CHEVRON CHEM CO, LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 MARATHON, Ms. Norma L. Calvert P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 ACE PETROLEUM COMPANY, ANDREW C CLIFFORD PO BOX 79593 HOUSTON TX 77279-9593 PHILLIPS PETR CO, JOE VOELKER 6330 W LP S RM 492 BELLAIRE, TX 77401 PHILLIPS PETR CO, PARTNERSHIP OPRNS JIM JOHNSON 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 TEXACO INC, R Ewing Clemons P O BOX 430 BELLAIRE, TX 77402-0430 WATTY STRICKLAND 2803 SANCTUARY CV KATY, TX 77450-8510 TESORO PETR CORP, LOIS DOWNS 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 INTL OIL SCOUTS, MASON MAP SERV INC P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 ! DIANE SUCHOMEL 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G VAUGHT JR P O BOX 13557 DENVER, CO 80201 BABCOCK & BROWN ENERGY, INC., JULIE WEBER 600 17TH STREET STE. 2630 SOUTH TOWER DENVER, CO 80210 US GEOLOGICAL SURVEY, LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 C & R INDUSTRIES, INC.,, KURT SALTSGAVER 7500 W MISSISSIPPI AVE STE C4 LAKEWOOD, CO 80226-4541 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 NRG ASSOC, RICHARD NEHRING P O BOX 1655 COLORADO SPRINGS, CO 1655 80901- RUBICON PETROLEUM, LLC, BRUCE I CLARDY SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN 200 N 3RD ST #1202 BOISE, ID 83702 TAHOMA RESOURCES, GARY PLAYER 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY, LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC, P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY, SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 BABSON & SHEPPARD, JOHN F BERGQUIST P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC., 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 TEXACO INC, Portfolio Team Manager R W HILL P O BOX 5197x Bakersfield, CA 93388 US GEOLOGICAL SURVEY, KEN BIRD 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 SHIELDS LIBRARY, GOVT DOCS DEPT UNIV OF CALIF DAVIS, CA 95616 H L WANGENHEIM 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 ECONOMIC INSIGHT INC, SAM VAN VACTOR P O BOX 683 PORTLAND, OR 97207 US EPA REGION 10, THOR CUTLER OW-137 1200 SIXTH AVE SEATTLE, WA 98101 MARPLES BUSINESS NEWSLETTER, MICHAEL J PARKS 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 ! DUSTY RHODES 229 WHITNEY RD ANCHORAGE, AK 99501 DEPT OF REVENUE, BEVERLY MARQUART 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA, 1026 W. 4th Ave, Ste 201 ANCHORAGE, AK 99501 STATE PIPELINE OFFICE, LIBRARY KATE MUNSON 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 DEPT OF REVENUE, OIL & GAS AUDIT DENISE HAWES 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 FAIRWEATHER E&P SERV INC, JESSE MOHRBACHER 715 1 ST ~4 ANCHORAGE, AK 99501 GUESS & RUDD, GEORGE LYLE 510 L ST, STE 700 ANCHORAGE, AK 99501 DEPT OF REVENUE, DAN DICKINSON, DIRECTOR 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 FORCENERGY INC., JIM ARLINGTON 310 K STREET STE 700 ANCHORAGE, AK 99501 DEPT OF REVENUE, CHUCK LOGSTON 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 YUKON PACIFIC CORP, JOHN HORN VICE CHM 1049 W 5TH AV ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP, LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ALASKA DEPT OF LAW, ROBERT E MINTZ ASST ATTY GEN 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 GAFO, GREENPEACE PAMELA MILLER 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS TIM RYHERD 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 DEPT OF REVENUE, OIL & GAS AUDIT FRANK PARR 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS BRUCE WEBB 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OIL & GAS WILLIAM VAN DYKE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JULIE HOULE 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DNR, DIV OF OIL & GAS JAMES B HAYNES NATURAL RESRCE MGR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS JIM STOUFFER 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, PUBLIC INFORMATION CTR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 AK JOURNAL OF COMMERCE, OIL & INDUSTRY NEWS ROSE RAGsDALE 4220 B Street Ste #210 ANCHORAGE, AK 99501-3560 BRISTOL ENVIR SERVICES, JIM MUNTER 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 BAKER OIL TOOLS, ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 N-I TUBULARS INC, 3301 C Street Ste 209 ANCHORAGE, AK 99503 HDR ALASKA INc, MARK DALTON 2525 C ST STE'305 ANCHORAGE, AK 99503 ANADARKO, MARK HANLEY 3201 C STREET STE 603 ANCHORAGE, AK 99503 ALASKA OIL& GAS ASSOC, JUDY BRADY 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER, 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 FINK ENVIRONMENTAL CONSULTING, INC., THOMAS FINK, PHD 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 , .ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON 8611 LEEPER cIRCLE ANCHORAGE, AK 99504-4209 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC PETER J DITTON 6881 ABBOTT LOOP ROAD ANCHORAGE, AK 99507 AMERICNCANADIAN STRATIGRPH CO, RON BROCKWAY 4800 KUPREANOF ANCHORAGE, AK 99507 US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC DICK FOLAND 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 US BLM AK DIST OFC, RESOURCE EVAL GRP ART BONET 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 THOMAS R MARSHALL JR 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 UON ANCHORAGE, INST OF SOCIAL & ECON RESEARCH TERESA HULL 3211 PROVIDENCE DR ANCHORAGE, AK 99508 TRADING BAY ENERGY CORP, PAUL CRAIG 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 US MIN MGMT SERV, RICHARD PRENTKI 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, RESOURCE STUDIES AK OCS REGN KIRK W SHERWOOD 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 GORDON J. SEVERSON 3201 WESTMAR ClR ANCHORAGE, AK 99508-4336 US MIN MGMT SERV, FRANK MILLER 949 E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 REGIONAL SUPRVISOR, FIELD OPERATNS, MMS ALASKA OCS REGION 949 E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, RESOURCE EVAL JIM SCHERR 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 ! JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS - ALASKA SECTION, LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 ClRI, LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 ANCHORAGE TIMES, BERT TARRANT P O BOX 100040 ANCHORAGE, AK 99510-0040 PHILLIPS ALASKA, JOANN GRUBER ATO 712 P O BOX 100360 ANCHORAGE, AK 99510,0360 PHILLIPS ALASKA, LEGAL DEPT MARK P WORCESTER P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, STEVE BENZLER ATO 1404 P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 PhILlIPS ALASKA, MARK MAJOR ATO 1968 P O BOX 100360 ANCHORAGE, AK 99510-0360 pHILLIPS ALASKA, LAND DEPT JAMES WINEGARNER P O BOX 10036 ANCHORAGE, AK 99510-0360 PETROLEUM INFO CORP, KRISTEN NELSON P O BOX 102278 ANCHORAGE, AK 99510-2278 PHILLIPS ALASKA, KUP CENTRAL WELLS ST TSTNG WELL ENG TECH NSK 69 P O BOX 196105 ANCHORAGE, AK 99510-6105 ALYESKA PIPELINE SERV CO, CHUCK O'DONNELL 1835 S BRAGAW - MS 530B ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO, PERRY A MARKLEY 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO, LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 US BUREAU OF LAND MGMT, OIL & GAS OPRNS (984) J A DYGAS 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 ANCHORAGE DAILY NEWS, EDITORIAL PG EDTR MICHAEL CAREY P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JWL ENGINEERING, JEFF LIPSCOMB 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 NORTHERN CONSULTING GROUP, ROBERT BRITCH, P.E. 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO 600 W 76TH AV #508 ANCHORAGE, AK 99518 ! ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 ASRC, CONRAD BAGNE 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 HALLIBURTON ENERGY SERV, MARK WEDMAN 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 OPSTAD & ASSOC, ERIK a OPSTAD PROF GEOL P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA P O BOX 190083 ANCHORAGE, AK 99519-0083 ENSTAR NATURAL GAS CO, BARRETT HATCHES P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO, OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6158 MARATHON OIL CO, BRAD PENN P O BOX 196168 ANCHORAGE, AK 99519-6168 UNOCAL, KEVIN TABLER P O BOX 196247 ANCHORAGE, .AK 99519-6247 UNOCAL, P O BOX 196247 ANCHORAGE, AK 99519-6247 EXXONMOBIL PRODUCTION COMPANY, MARK P EVANS PO BOX 196601 ANCHORAGE, AK 99519-6601 BP EXPLORATION (ALASKA), INC., MARK BERLINGER MB 8-1 PO BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, PETE ZSELECZKY LAND MGR P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA)INc, INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, SUE MILLER P O BOX 196612 MIS LR2-3 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, MR. DAVIS, ESQ .. P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 AMSINALLEE C© INC, WILLIAM O VALLEE PRES PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT 10510 Constitution Circle EAGLE RIVER, AK 99577 PINNACLE, STEVE TYLER 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 D A PLATT & ASSOC, 9852 LITTLE DIOMEDE ClR EAGLE RIVER, AK 99577 JAMES'RODERICK PO BOX 770471 EAGLE RIVER, AK 99577-0471 DEPT OF NATURAL RESOURCES, DGGS JOHN REEDER P O BOX 772805 EAGLE RIVER, AK 99577-2805 COOK INLET KEEPER, BOB SHAVELSON PO BOX 3269 HOMER, AK 99603 PHILLIPS PETR, ALASKA OPERATIONS MANAGER J W KONST P O DRAWER 66 KENAI, AK 99611 ~,ON DOLCHOK P O BOX 83 KENAI, AK 99611 DOCUMENT SERVICE CO, JOHN PARKER P O BOX 1468 KENAI, AK 99611-1468 KENAI PENINSULA BOROUGH, ECONOMIC DEVEL DISTR STAN STEADMAN P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD PO BOX 558 HOMER, AK 99623 PENNY VADLA P O BOX 467 NINILCHIK, AK 99639 BELOWICH, MICHAEL A BELOWICH 1125 SNOW HILL AVE WASILLA, AK 99654-5751 PACE, SHEILA DICKSON P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE, REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 ALYESKA PIPELINE SERVICE CO, VALDEZ CORP AFFAIRS SANDY MCCLINTOCK P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER, P O BOX 367 VALDEZ, AK 99686 VALDEZ VANGUARD, EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH 543 2ND AVE FAIRBANKS, AK 99701 UNIV OF ALASKA FAIRBANKS, PETR DEVEL LAB DR V A KAMATH 427 DUCKERING FAIRBANKS, AK 99701 ! RICK WAGNER P O BOX 60868 FAIRBANKS, AK 99706 FAIRBANKS DAILY NEWS-MINER, KATE RIPLEY P O BOX 70710 FAIRBANKS, AK 99707 , C BURGLIN P O BOX 131 FAIRBANKS, AK 99707 ! FRED PRATT P O BOX 72981 FAIRBANKS, AK 99707-2981 DEPT OF NATURAL RESOURCES, DIV OF LAND REG MGR NORTHERN REGION 3700 AIRPORT WAY FAIRBANKS, AK' 99709-4699 K&K RECYCL INC, P O BOX 58055 FAIRBANKS, AK 99711 ASRC, BILLTHOMAS P O BOX129 BARROW, AK 99723 RICHARD FINEBERG P O BOX 416 ESTER, AK 99725 UNIV OF ALASKA FBX, PETR DEVEL LAB SHIRISH PATIL · 437 DICKERING FAIRBANKS, AK 99775 UNIVERSITY OF ALASKA FBKS, PETR DEVEL LAB DR AKANNI LAWAL P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 DEPT OF ENVIRON CONSERV SPAR, CHRIS PACE 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 TRflNSAOTION REPORT '~' P, O1 MAY-03-O1THU 04:31 PM ~ SEND(M) , DATE START REOEIVER TX TINE PAGES TYPE NOTE M~ DP * MAY-03 04:30 PM ANOH NEWS 1' 13' 3 SEND (M) OK 065 ~ #5 Alaska ',,,egion Domestic Production Marathon OilCompany P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 May 2, 2001 Ms. Cammy Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease # 1030649 VIA CERTIFIED MAIL Dear Commissioner Taylor: Please be advised that Marathon Oil Company objects to the Spacing Exception requested by Union Oil Company of California under Notice published April 24, 2001. Marathon respectfully requests a hearing before the Commission concerning this matter. Please feel free to contact me should you have questions. re~a~jts,/7 J. Brock Riddle Alaska Region Landman Certified Receipt 7000 0520 0024 8746 0351 I certify that on ,~ /V~,,'t~ / a oo --° , Pit of the above was faxed/L-fl~iled~o each of the following at their-'~'~resses of record: A subsidiary of USX Corporation Environmentally aware for the long run. #4 STATE OF ALASKA ~ NOTICE TO PUBLISHER ~i,, ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED ^FF,D^v,T or PUBL,O^T,O. Or ..,S AO'02114016 ORDER ~VERTISEMENT MUST BE SUBMI~D WI~ INVOICE ' %" ' ~ . '.. "", '%~ ~",~'~:'~ ~¥~ ,,' :~;.,~=~",.:'~ ;',~?.,~,~'.:c .~'?, ~ ~'~-~; ~ ':. ~ ;.,:~: ~ AOGCC ~G~NCv co~c~ ~ o~ ~.d. ~ 333 W 7~ Ave, Ste 100 Jod~ Colombie April 23,... 2001 o ~chorage, ~ 99501 ~.ou[ ~c~ ~ - (907~ 793 -1221 ~ATE~ ~RTISEMENT ~QUI~D= ~ ~ ~chorage D~ly News April 24, 2001 o P O Box 149001 mE mTEm~ BE~EN mE DOYLE LINES MUST BE PraTED IN ITS ~chorage, ~ 99514 t~n~ ON THE DATES SHO~. SPECIAL INSTRUCTIONS: Typ~ of ~dv~i~em~nt ~ ~egal ~ Displa~ ~ Classified ~Oth,r SEE ATTACHED PUBLIC HE~NG NOTICE ITOTAL OFI SENB"INVOICE :iN;~'PLIC~E:,~ AOGCC. 333 W. 7th Ave., Suite 100 PAGE1 OF [ALL PAGES$] · ',..:..;..?.~:~.~``.~.`.~.~:..:~:~.~T~....~:`'~.5`::4:~....:L.`~:~.~:..~....:::.~ ,~choragc: AK 99501 2PAGES REF ~PE NUMBER AMOUNT DATE COMMENTS , , 1 VEN ,, ~ n~ 02910 ,, , , FIN ~OUNT SY CC PGM LC ACCT ~ NMR DIST LIQ , , ~ 01 021401 O0 73540 REQUISITIONED BY: IDI~SION APPROVAL: , 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re~ South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease #1030649 Union Oil Company of California by letter dated April 17, 2001 has requested an order allowing a spacing exception in accordance with 20 AAC 25.055(a)(2) for an exploratory gas well to be drilled within 1500 feet of the property line. The vertical well will be drilled from a surface location 2277' from the west line, 550' from the north line, Section 24, T1 S, R14W, Seward Meridian. A person may submit written comments regarding the requested revision prior to June 19, 2001 at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. In addition, the Commission has tentatively set a public hearing on June 19, 2001 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 prior to May 15,2001. 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. 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 June 11,2001. Oil and gas Conservation Commission Published April 24, 2001 ADN AO# AO-02114016 STATE OF ALASKA '~ NOTICE TO PUBLISHER ADYERTI$1NG ORDER NO. co. AO'021 ORDER ADVERTISEMENT MUST BE SUBMI~ED WITH INVOICE ' ": ' SEE :B~OM. F~ .INVOICE'~DRE~.~,:"~. '5~'~' ~:. '. ":'~' :'"" ;~,./?'~.:'";.:"...'::: ';:::...;':,..,; '.'.' :.~?:.~' ..: :"'..'~'.~ ~ ~. ":' " 333 West 7~ Avenue, Suite ]00 ~odv Co]omb~e A~HI ~3: 200] o ~chorage, ~ 99501 PHORE P~N M - (907~ 793 - 1221 ~ ~chora[c D~ly News April 24, 2001 o P O Box 149001 ~chorage, ~ 99514 ~.~ ~m~ s~ ~.~ ~o~ u~s ~sT ~ ~mN~ ]~ ~S EN~ ON T~E DATES SHO~. SPECIAL INSTRUCTIONS: AFFIDAVIT PUBLICATIO United states of Ame~ea R~I~~R State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE division. THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION BefOre me; the undersigned, a nota~ public this day personally appeared ,,~UST BE SUBMI~ED WITH THE INVOICE. A~ACH PROOF OF PUBLICATION HERE. 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 adve~isement, of which the annexed is a true copy, was published in said publication on the day of 19 , and thereafter for __ consecutive days, the last publication appearing on the __ day of ,19 , and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This dayof 19, , Nota~ public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISItER Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 ,4/25/2001 AD # DATE PO PRICE OTHER OTHER GRAND ACCOUNT PER DAY CHARGES CHARGES #2 TOTAL 849324 04/25/2001 02114016 STOF0330 $103.20 $0.00 $0.00 $103.20 $0.00 $0.00 $0.00 $103.20 $0.00 $0.00 $103.20 STATE OF ALASKA THIRD JUDICIAL DISTRICT Eva Alexie, 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 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 sai~i time was printed in an office maintained at the aforesaid place of publication, of said. newspp..a er That. the annexekl is a coop)y of an advertisement as it was published in regular issues (and not in supplemental form) of sa-id newspaper o-nthe above dates and that such newspaper was regularly distributed to its subscribers during all of safd period. That the full amount of the fee charged for th~ foregoing bublication is not in excess of the rate char~ed private individuals. Signed Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: /~,~.//~~ ? 'S'Oiu t h : N::i n il ,'.COlifoFnJo by' letter' doted :Al~::il.".~;~, ,.:.2(i0..l:.:tl:a ~ tie- ~'~'Sf~ o~ bPO~r'~"llow:, lng a sDaclng excep.tion in accordance with 20 AAC 25.05'5(a)(2) for an ex- ploratory'gas well to be drilled-within 1500 feet of the.property line. The vert'ical .well will De drilled frOm'o sdrface ~o-': cation 2277' fram the west ~;'.~.' ~jD' ~r;..'-* thor 2rtb I1-:~ ~k,k- p,,' }.~ I'~ R .:.'~ ~.).',t,?d ','ct ~ ~"' ~, , . ,,. ~,. '~ :," ,,~ ,,,,,, "~ .... ~. ~'~ ::' .~'23 .'..75 ..... ~',~, ~ ,.~ tm ~'l i.',. ..A'. ' . ~' ,.' ~. ,~ .'.' "'1. ,~ % ',', '~ ',~ ' :~ ~ ~ .'. '.' ~ ' " .',.er.,,' ~,. ~ '3) ..r','hc',,,, , · ~:~,~,~ 9~ '~ .... ...... m'a~ reque~f ~hc~t the'.'~'en:' .tatively schedUled hear- Clng be held by~ filln.g a iwrltten recluest aWith th~ I/c0mmiSslOn ~?lot,ta'May [:,,,'~,,, ~oo.!,,,' :',;,:' ', ,:, j,, rf a reques~ for a hear: J lng'is ~Ot timely flied; the J Commi,'ss',lon ~li,',l' C~n. J' Sider the I~,suanc~' O~. a.n f'.order without .a. hea'ri'ng. J".To learn i.f' t'he Co~m~'s. J'.:sion will h61d the~'P'bbllc / hearing, please ca ~93-!22!. ~ ,. , ,,~. '... ':~ d ~.~,, I .v .,h ..... ~Off: ~ S~:C'C.~i~ I"i~U I., J~- I lOp ." .'.1'~::O~ t~ C ~'~J'it~'l ' befdre.June 1.1; 2001. · '. :' ,; ' ,, ':,, , , .'/~..Cam~y,Ta.ylGr~ . . :.. ,Chair.; oiran8 Gas ':c~hservatlbn' C]o~mlssion ~ ,, , ~ '., RECEIVED HAY 0 ? 2001, ~dlJlt~ 011 & ~ias (;ans. ~omm~mo~ Anchorage TRANSACTION REPORT~ APR-23-O1 NON 05:33 SEND(N) DATE START REOEIVER ~ TX TINE PAGES TYPE NOTE ~ APR-23 05:32 PI"I ANOH NEWS 1' 12" 3 SEND (~) OK 19"/ PIRA ENERGY GROUP, LIBRARY 3 PARK AVENUE (34th & PARK) NEW YORK, NY 10016 NY PUBLIC LIBRARY DIV E, GRAND CENTRAL STATION P O BOX 2221 NEW YORK, NY 10163-2221 JOHN KATZ STE 518 ALASKA OFC OF THE GOVERNOR, 444 N CAPITOL NW WASHINGTON, DC 20001 WASHINGTON SQ BLDG ARENT FOX KINTNER PLOTKIN KAHN, LIBRARY 1050 CONNECTICUT AV NW WASHINGTON, DC 20036-5339 US MIN MGMT SERV, CHIEF OCS STATS & INFO 381 ELDEN ST MS 4022 HERNDON, VA 20170-4817 EXCH & GIFT DIV LIBRARY OF CONGRESS, STATE DOCUMENT SECTION 10 FIRST ST SE WASHINGTON, DC 20540 PHYLLIS MARTIN MS EI823 U S DEPT OF ENERGY, 1000 INDEPENDENCE SW WASHINGTON, DC 20585 BRANDY KERNS TECHSYS CORP, PO BOX 8485 GATHERSBURG, MD 20898 US GEOLOGICAL SURVEY, LIBRARY NATIONAL CTR MS 950 RESTON, VA 22092 DANIEL DONKEL DPC, 1420 NORTH ATLANTIC AVE, STE 204 DAYTON BEACH, FL 32118 SD DEPT OF ENV & NATRL RESOURCES, OIL & GAS PROGRAM 2050 W MAIN STE #1 RAPID CITY, SD 57702 AMOCO CORP 2002A, LIBRARY/INFO CTR P O BOX 87703 CHICAGO, IL 60680-0703 469 NATURAL RESOURCES BLDG ILLINOIS STATE GEOL SURV, LIBRARY 615 E PEABODY DR CHAMPAIGN, IL 61820 LINDA HALL LIBRARY, SERIALS DEPT 5109 CHERRY ST KANSAS CITY, MO 64110-2498 ALFRED JAMES III , 107 N MARKET STE 1000 WICHITA, KS 67202-1811 ROBERT F SAWYER MURPHY E&P CO, P O BOX 61780 NEW ORLEANS, LA 70161 UNIV OF ARKANSAS, SERIALS DEPT UNIV LIBRARIES FAYETTEVILLE, AR 72701 SUSAN LILLY CROSS TIMBERS OPERATIONS, 210 PARK AVE STE 2350 OKLAHOMA CITY, OK 73102-5605 IOGCC, P O BOX 53127 OKLAHOMA CITY, OK 73152-3127 R E MCMILLEN CONSULT GEOL , 202 E 16TH ST OWASSO, OK 74055-4905 LAURA BELL OIL & GAS JOURNAL, P O BOX 1260 TULSA, OK 74101 GAFFNEY, CLINE & ASSOC., INC., LIBRARY 16775 ADDISON RD, STE 400 ADDISON, TX 75001 BAPI RAJU 335 PINYON LN COPPELL, TX 75019 MIR YOUSUFUDDIN US DEPT OF ENERGY, ENERGY INFORMATION ADMINISTRATION 1999 BRYAN STREET STE 1110 DALLAS, TX 75201-6801 ONE ENERGY SQ, STE 400 DEGOLYER & MACNAUGHTON, MIDCONTINENT DIVISION 4925 GREENVILLE AVE DALLAS, TX 75206-4083 AL GRIFFITH STANDARD AMERICAN OIL CO, P O BOX 370 GRANBURY, TX 76048 MARY JONES CROSS TIMBERS OIL COMPANY, 810 HOUSTON ST STE 2000 FORT WORTH, TX 76102-6298 G.S. NADY SHELL WESTERN E&P INC, P O BOX 576 HOUSTON, TX 77001-0574 ATTN: ROBERT RASOR H J GRUY, 1200 SMITH STREET STE 3040 HOUSTON, TX 77002 MARTY LINGNER ENERGY GRAPHICS, 1600 SMITH ST, STE 4900 HOUSTON, TX 77002 2150 TEXAS COMMERCE TWR PURVIN & GERTZ INC, LIBRARY 600 TRAVIS ST HOUSTON, TX 77002-2979 RAY TYSON , 2016 MAIN #1415 HOUSTON, TX 77002-8844 PAUL WALKER CHEVRON, 1301 MCKINNEY RM 1750 HOUSTON, TX 77010 BOB WILLIAMS OIL & GAS JOURNAL, 1700 W LOOP SOUTH STE 1000 HOUSTON, TX 77027 DANIEL L LIPPE PETRAL CONSULTING CO, 9800 RICHMOND STE 505 HOUSTON, TX 77042 MARK ALEXANDER 7502 ALCOMITA HOUSTON, TX 77083 GEORGE ROTHSCHILD JR RM 2537 MARATHON OIL CO, P O BOX 4813 HOUSTON, TX 77210 UNOCAL, REVENUE ACCOUNTING P O BOX 4531 HOUSTON, TX 77210-4531 EXXON EXPLOR CO, LAND/REGULATORY AFFAIRS RM 301 P O BOX 4778 HOUSTON, TX 77210-4778 T E ALFORD EXXON EXPLORATION CO., P O BOX 4778 HOUSTON, TX 77210-4778 ATTN: CORRY WOOLINGTON CHEVRON USA INC., ALASKA DIVISION P O BOX 1635 HOUSTON, TX 77251 DAVID PHILLIPS PETR INFO, P O BOX 1702 HOUSTON, TX 77251-1702 ALASKA LAND MGR PHILLIPS PETR CO, P O BOX 1967 HOUSTON, TX 77251-1967 W ALLEN HUCKABAY PHILLIPS PETROLEUM COMPANY, PO BOX 1967 HOUSTON, TX 77251-1967 DONNA WILLIAMS WORLD OIL, P O BOX 2608 HOUSTON, TX 77252 GARY M ROBERTS RM 3039 EXXONMOBIL PRODUCTION COMPANY, P O BOX 2180 HOUSTON, TX 77252-2180 CHEVRON CHEM CO, LIBRARY & INFO CTR P O BOX 2100 HOUSTON, TX 77252-9987 J W KIKER ROOM 2086 EXXONMOBIL PRODUCTION COMPANY, P O BOX 2180 HOUSTON, TX 77252-2180 MS. NORMA CALVERT MARATHON, P O BOX 3128, Ste 3915 HOUSTON, TX 77253-3128 WILL D MCCROCKLIN PENNZOIL E&P, P O BOX 2967 HOUSTON, TX 77252-2967 ANDREW C CLIFFORD ACE PETROLEUM COMPANY, PO BOX 79593 HOUSTON, TX 77279-9593 JIM JOHNSON PHILLIPS PETR CO, PARTNERSHIP OPRNS 6330 W LOOP S RM 1132 BELLAIRE, TX 77401 WATTY STRICKLAND , 2803 SANCTUARY CV KATY, TX 77450-8510 JOE VOELKER PHILLIPS PETR CO, 6330 W LP S RM 492 BELLAIRE, TX 77401 LOIS DOWNS TESORO PETR CORP, 300 CONCORD PLAZA DRIVE SAN ANTONIO, TX 78216-6999 R EWING CLEMONS TEXACO INC, P O BOX 430 BELLAIRE, TX 77402-0430 MASON MAP SERV INC INTL OIL SCOUTS, P O BOX 338 AUSTIN, TX 78767 ROBERT G GRAVELY 7681 S KIT CARSON DR LITTLETON, CO 80122 DIANE SUCHOMEL , 10507D W MAPLEWOOD DR LITTLETON, CO 80127 GEORGE G VAUGHT JR , P O BOX 13557 DENVER, CO 80201 JULIE WEBER BABCOCK & BROWN ENERGY, INC., STE. 2630 SOUTH TOWER DENVER, CO 80210 US GEOLOGICAL SURVEY, LIBRARY BOX 25046 MS 914 DENVER, CO 80225-0046 KURT SALTSGAVER C & R INDUSTRIES, INC.,, 7500 W MISSISSIPPI AVE STIF C4 LAKEWOOD, CO 80226-4541 JERRY HODGDEN GEOL 408 18TH ST GOLDEN, CO 80401 RICHARD NEHRING NRG ASSOC, P O BOX 1655 COLORADO SPRINGS, CO 1655 80901- BRUCE I CLARDY RUBICON PETROLEUM, LLC, SIX PINE ROAD COLORADO SPRINGS, CO 80906 JOHN A LEVORSEN ! 200 N 3RD ST #1202 BOISE, ID 83702 GARY PLAYER TAHOMA RESOURCES, 1671 WEST 546 S CEDER CITY, UT 84720 US GEOLOGICAL SURVEY, LIBRARY 2255 N GEMINI DR FLAGSTAFF, AZ 86001-1698 MUNGER OIL INFOR SERV INC, P O BOX 45738 LOS ANGELES, CA 90045-0738 LA PUBLIC LIBRARY, SERIALS DIV 630 W 5TH ST LOS ANGELES, CA 90071 JOHN f BERGQUIST BABSON & SHEPPARD, P O BOX 8279 VIKING STN LONG BEACH, CA 90808-0279 ANTONIO MADRID ! P O BOX 94625 PASADENA, CA 91109 ORO NEGRO, INC., 9321 MELVIN AVE NORTHRIDGE, CA 91324-2410 R W HILL TEXACO INC, PORTFOLIO TEAM MANAGER P O BOX 5197x Bakersfield, CA 93388 KEN BIRD US GEOLOGICAL SURVEY, 345 MIDDLEFIELD RD MS 999 MENLO PARK, CA 94025 UNIV OF CALIFORNIA SHIELDS LIBRARY, GOVT DOCS DEPT DAVIS, CA 95616 H L WANGENHEIM ! 5430 SAWMILL RD SP 11 PARADISE, CA 95969-5969 SAM VAN VACTOR ECONOMIC INSIGHT INC, P O BOX 683 PORTLAND, OR 97207 THOR CUTLER OW-137 US EPA REGION 10, 1200 SIXTH AVE SEATTLE, WA 98101 MICHAEL J PARKS MARPLES BUSINESS NEWSLETTER, 117 W MERCER ST STE 200 SEATTLE, WA 98119-3960 JESSE MOHRBACHER FAIRWEATHER E&P SERV INC, 715 1 ST ~4 ANCHORAGE, AK 99501 TRUSTEES FOR ALASKA, 1026 W. 4th Ave, Ste 201 ANCHORAGE, AK 99501 DUSTY RHODES , 229 WHITNEY RD ANCHORAGE, AK 99501 GEORGE LYLE GUESS & RUDD, 510 L ST, STE 700 ANCHORAGE, AK 99501 DENISE HAWES DEPT OF REVENUE, OIL & GAS AUDIT 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 BEVERLY MARQUART DEPT OF REVENUE, 550 W 7TH AV STE 570 ANCHORAGE, AK 99501 DAN DICKINSON, DIRECTOR DEPT OF REVENUE, 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 CHUCK LOGSTON DEPT OF REVENUE, 550 W 7TH AVE, SUITE 500 ANCHORAGE, AK 99501 JIM ARLINGTON FORCENERGY INC., 310 K STREET STE 700 ANCHORAGE, AK 99501 KATE MUNSON STATE PIPELINE OFFICE, LIBRARY 411 W 4TH AVE, STE 2 ANCHORAGE, AK 99501 JOHN HORN VICE CHM YUKON PACIFIC CORP, 1049 W 5TH AV ANCHORAGE, AK 99501-1930 PRESTON GATES ELLIS LLP, LIBRARY 420 L ST STE 400 ANCHORAGE, AK 99501-1937 ROBERT E MINTZ ASST ArTY GEN ALASKA DEPT OF LAW, 1031 W 4TH AV STE 200 ANCHORAGE, AK 99501-1994 PAMELA MILLER GAFO, GREENPEACE 125 CHRISTENSEN DR. #2 ANCHORAGE, AK 99501-2101 TIM RYHERD DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7th AVE STE 800 ANCHORAGE, AK 99501-3510 FRANK PARR DEPT OF REVENUE, OIL & GAS AUDIT 550 W 7TH AVE STE 570 ANCHORAGE, AK 99501-3540 JIM STOUFFER DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 BRUCE WEBB DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 WILLIAM VAN DYKE DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 JULIE HOULE DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 JAMES B HAYNES DEPT OF NATURAL RESOURCES, DIV OF OIL & GAS 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 DEPT OF NATURAL RESOURCES, PUBLIC INFORMATION CTR 550 W 7TH AVE, SUITE 800 ANCHORAGE, AK 99501-3560 ROSE RAGSDALE AK JOURNAL OF COMMERCE, OIL & INDUSTRY NEWS 4220 B Street Ste #210 ANCHORAGE, AK 99501-3560 JIM MUNTER BRISTOL ENVIR SERVICES, 2000 W. INT'L AIRPORT RD #C-1 ANCHORAGE, AK 99502-1116 BAKER OIL TOOLS, ALASKA AREA MGR 4710 BUS PK BLVD STE 36 ANCHORAGE, AK 99503 MARK DALTON HDR ALASKA INC, 2525 C ST STE 305 ANCHORAGE, AK 99503 N-I TUBULARS INC, 3301 C Street Ste 209 ANCHORAGE, AK 99503 MARK HANLEY ANADARKO, 3201CSTREET STE603 ANCHORAGE, AK 99503 JUDY BRADY ALASKA OIL & GAS ASSOC, 121 W FIREWEED LN STE 207 ANCHORAGE, AK 99503-2035 ANADRILL-SCHLUMBERGER, 3940 ARCTIC BLVD #300 ANCHORAGE, AK 99503-5711 THOMAS FINK, PHD FINK ENVIRONMENTAL CONSULTING, INC., 6359 COLGATE DR. ANCHORAGE, AK 99504-3305 ARLEN EHM GEOL CONSLTNT 2420 FOXHALL DR ANCHORAGE, AK 99504-3342 JAMES E EASON , 8611 LEEPER CIRCLE ANCHORAGE, AK 99504-4209 RON BROCKWAY AMERICNCANADIAN STRATIGRPH CO, 4800KUPREANOF ANCHORAGE, AK 99507 PETERJ DITTON US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC 6881ABBOTTLOOP ROAD ANCHORAGE, AK 99507 DICK FOLAND US BUREAU OF LAND MNGMNT, ANCHORAGE DIST OFC 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507 ART BONET US BLM AK DIST OFC, RESOURCE EVAL GRP 6881 ABBOTT LOOP RD ANCHORAGE, AK 99507-2899 PAUL CRAIG TRADING BAY ENERGY CORP, 5432 NORTHERN LIGHTS BLVD ANCHORAGE, AK 99508 TERESA HULL UON ANCHORAGE, INST OF SOCIAL & ECON RESEARCH 3211PROVIDENCE DR ANCHORAGE, AK 99508 THOMAS R MARSHALL JR ! 1569 BIRCHWOOD ST ANCHORAGE, AK 99508 RICHARD PRENTKI US MIN MGMT SERV, 949 E 36TH AV ANCHORAGE, AK 99508-4302 US MIN MGMT SERV, AK OCS REGIONAL DIR 949 E 36TH AV RM 110 ANCHORAGE, AK 99508-4302 KIRK W SHERWOOD US MIN MGMT SERV, RESOURCE STUDIES AK OCS REGN 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4302 GORDON J. SEVERSON , 3201 WESTMAR CIR ANCHORAGE, AK 99508-4336 ALASKA OCS REGION REGIONAL SUPRVISOR, FIELD OPERATNS, MMS 949 E 36TH AV STE 308 ANCHORAGE, AK 99508-4363 US MIN MGMT SERV, LIBRARY 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 JIM SCHERR US MIN MGMT SERV, RESOURCE EVAL 949 E 36TH AV RM 603 ANCHORAGE, AK 99508-4363 FRANK MILLER US MIN MGMT SERV, 949 E 36TH AV STE 603 ANCHORAGE, AK 99508-4363 JOHN MILLER 3445 FORDHAM DR ANCHORAGE, AK 99508-4555 USGS - ALASKA SECTION, LIBRARY 4200 UNIVERSITY DR ANCHORAGE, AK 99508-4667 ClRI, LAND DEPT P O BOX 93330 ANCHORAGE, AK 99509-3330 BERT TARRANT ANCHORAGE TIMES, P O BOX 100040 ANCHORAGE, AK 99510-0040 JOANN GRUBER ATO 712 PHILLIPS ALASKA, P O BOX 100360 ANCHORAGE, AK 99510-0360 MARK P WORCESTER PHILLIPS ALASKA, LEGAL DEPT P O BOX 100360 ANCHORAGE, AK 99510-0360 STEVE BENZLER ATO 1404 PHILLIPS ALASKA, P O BOX 100360 ANCHORAGE, AK 99510-0360 PHILLIPS ALASKA, LIBRARY P O BOX 100360 ANCHORAGE, AK 99510-0360 MARK MAJOR ATO 1968 PHILLIPS ALASKA, P O BOX 100360 ANCHORAGE, AK 99510-0360 JAMES WINEGARNER PHILLIPS ALASKA, LAND DEPT P O BOX 10036 ANCHORAGE, AK 99510-0360 KRISTEN NELSON PETROLEUM INFO CORP, P O BOX 102278 ANCHORAGE, AK 99510-2278 WELL ENG TECH NSK 69 PHILLIPS ALASKA, KUP CENTRAL WELLS ST TSTNG P O BOX 196105 ANCHORAGE, AK 99510-6105 CHUCK O'DONNELL ALYESKA PIPELINE SERV CO, 1835 S BRAGAW - MS 530B ANCHORAGE, AK 99512 PERRY A MARKLEY ALYESKA PIPELINE SERV CO, 1835 S BRAGAW - MS 575 ANCHORAGE, AK 99512 ALYESKA PIPELINE SERV CO, LEGAL DEPT 1835 S BRAGAW ANCHORAGE, AK 99512-0099 J A DYGAS US BUREAU OF LAND MGMT, OIL & GAS OPRNS (984) 222 W 7TH AV #13 ANCHORAGE, AK 99513-7599 MICHAEL CAREY ANCHORAGE DAILY NEWS, EDITORIAL PG EDTR P O BOX 149001 ANCHORAGE, AK 99514 DAVID W. JOHNSTON 320 MARINER DR. ANCHORAGE, AK 99515 JEFF LIPSCOMB JWL ENGINEERING, 9921 MAIN TREE DR. ANCHORAGE, AK 99516-6510 ROBERT BRITCH, P.E. NORTHERN CONSULTING GROUP, 2454 TELEQUANA DR. ANCHORAGE, AK 99517 GERALD GANOPOLE CONSULT GEOL ! 2536 ARLINGTON ANCHORAGE, AK 99517-1303 DAVID CUSATO , 600 W 76TH AV #508 ANCHORAGE, AK 99518 CONRAD BAGNE ASRC, 301 ARCTIC SLOPE AV STE 300 ANCHORAGE, AK 99518 ARMAND SPIELMAN 651 HILANDER CIRCLE ANCHORAGE, AK 99518 MARK WEDMAN HALLIBURTON ENERGY SERV, 6900 ARCTIC BLVD ANCHORAGE, AK 99518-2146 ERIK A OPSTAD PROF GEOL OPSTAD & ASSOC, P O BOX 190754 ANCHORAGE, AK 99519 JACK O HAKKILA , P O BOX 190083 ANCHORAGE, AK 99519-0083 BARRETT HATCHES ENSTAR NATURAL GAS CO, P O BOX 190288 ANCHORAGE, AK 99519-0288 MARATHON OIL CO, OPERATIONS SUPT P O BOX 196168 ANCHORAGE, AK 99519-6168 BRAD PENN MARATHON OIL CO, P O BOX 196168 ANCHORAGE, AK 99519-6168 KEVIN TABLER UNOCAL, P O BOX 196247 ANCHORAGE, AK 99519-6247 UNOCAL, P O BOX 196247 ANCHORAGE, AK 99519-6247 MARK P EVANS EXXONMOBIL PRODUCTION COMPANY, PO BOX 196601 ANCHORAGE, AK 99519-6601 MARK BERLINGER MB 8-1 BP EXPLORATION (ALASKA), INC., PO BOX 196612 ANCHORAGE, AK 99519-6612 PETE ZSELECZKY LAND MGR BP EXPLORATION (ALASKA) INC, P O BOX 196612 ANCHORAGE, AK 99519-6612 BP EXPLORATION (ALASKA) INC, INFO RESOURCE CTR MB 3-2 P O BOX 196612 ANCHORAGE, AK 99519-6612 SUE MILLER BP EXPLORATION (ALASKA)INC, P O BOX 196612 MIS LR2-3 ANCHORAGE, AK 99519-6612 MR. DAVIS, ESQ BP EXPLORATION (ALASKA)INC, P O BOX 196612 MB 13-5 ANCHORAGE, AK 99519-6612 WILLIAM O VALLEE PRES AMSINALLEE CO INC, PO BOX 243086 ANCHORAGE, AK 99524-3086 L G POST O&G LAND MGMT CONSULT , 10510 Constitution Circle EAGLE RIVER, AK 99577 STEVE TYLER PINNACLE, 20231 REVERE CIRCLE EAGLE RIVER, AK 99577 D A PLATT & ASSOC, 9852 LITTLE DIOMEDE CIR EAGLE RIVER, AK 99577 JAMES RODERICK , PO BOX 770471 EAGLE RIVER, AK 99577-0471 JOHN REEDER DEPT OF NATURAL RESOURCES, DGGS P O BOX 772805 EAGLE RIVER, AK 99577-2805 BOB SHAVELSON COOk INLET KEEPER, PO BOX 3269 HOMER, AK 99603 J W KONST PHILLIPS PETR, ALASKA OPERATIONS MANAGER P O DRAWER 66 KENAI, AK 99611 RON DOLCHOK , P O BOX 83 KENAI, AK 99611 JOHN PARKER DOCUMENT SERVICE CO, P O BOX 1468 KENAI, AK 99611-1468 STAN STEADMAN KENAI PENINSULA BOROUGH, ECONOMIC DEVEL DISTR P O BOX 3029 KENAI, AK 99611-3029 NANCY LORD , PO BOX 558 HOMER, AK 99623 PENNY VADLA ! P O BOX 467 NINILCHIK, AK 99639 MICHAEL A BELOWICH BELOWICH, 1125 SNOW HILL AVE WASlLLA, AK 99654-5751 SHEILA DICKSON PACE, P O BOX 2018 SOLDOTNA, AK 99669 JAMES GIBBS P O BOX 1597 SOLDOTNA, AK 99669 KENAI NATL WILDLIFE REFUGE, REFUGE MGR P O BOX 2139 SOLDOTNA, AK 99669-2139 SANDY MCCLINTOCK ALYESKA PIPELINE SERVICE CO, VALDEZ CORP AFFAIRS P O BOX 300 MS/701 VALDEZ, AK 99686 VALDEZ PIONEER, P O BOX 367 VALDEZ, AK 99686 VALDEZ VANGUARD, EDITOR P O BOX 98 VALDEZ, AK 99686-0098 NICK STEPOVICH , 543 2ND AVE FAIRBANKS, AK 99701 DR V A KAMATH UNIV OF ALASKA FAIRBANKS, PETR DEVEL LAB 427 DUOKERING FAIRBANKS, AK 99701 RICK WAGNER ! P O BOX 60868 FAIRBANKS, AK 99706 KATE RIPLEY FAIRBANKS DALLY NEWS-MINER, P O BOX 70710 FAIRBANKS, AK 99707 C BURGLIN ! P O BOX 131 FAIRBANKS, AK 99707 FRED PRATT ! P O BOX 72981 FAIRBANKS, AK 99707-2981 REG MGR NORTHERN REGION DEPT OF NATURAL RESOURCES, DIV OF LAND 3700 AIRPORT WAY FAIRBANKS, AK 99709-4699 K&K RECYCL INC, P O BOX 58055 FAIRBANKS, AK 99711 BILL THOMAS ASRC, P O BOX 129 BARROW, AK 99723 RICHARD FINEBERG ! P O BOX 416 ESTER, AK 99725 SHIRISH PATIL UNIV OF ALASKA FBX, PETR DEVEL LAB 437 DICKERING FAIRBANKS, AK 99775 DR AKANNI LAWAL UNIVERSITY OF ALASKA FBKS, PETR DEVEL LAB P O BOX 755880 FAIRBANKS, AK 99775-5880 SENATOR LOREN LEMAN , STATE CAPITOL RM 113 JUNEAU, AK 99801-1182 CHRIS PACE DEPT OF ENVIRON CONSERV SPAR, 410 WILLOUGHBY AV STE 105 JUNEAU, AK 99801-1795 #3 Unocal Corporation 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 UNOCAL April 17, 2001 Mr. Dan Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 APPLICATION FOR SPACING EXCEPTION South Ninilchik Drilling Pad, Albright #1 Well Unocal Lease #1030649 Dear Chairman Seamount: Unocal is committed to drilling the Albright # 1 Well ("Albright Well") in South Ninilchik in 2001. We anticipate a Permit to Drill will follow this Application by early summer. The Albright Well is approximately 500' from the nearest property line and will require a spacing exception in accordance with 20 AAC 25.055 (a)(2). This regulation provides in pertinent part, "a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line." At the date of this mailing, in accordance with 20 AAC 25.055 (d)(1), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all properties within 3,000 feet of the Albright Well. A copy of such notice and addresses to which the notice was sent is enclosed herein. It is requested that the Commission approve an exception to the statewide spacing regulation for the drilling of the proposed Albright Well. The proposed Well will be a straight hole from surface to total depth. The specific location from surface will be as follows: Surface Location: 2277' FWL, 550' FNL, TIS, R14W, Section 24 Pursuant to and 20 AAC 25.055 (d)(2), enclosed is a plat showing the location of the well for which the exception is sought and all adjoining properties. There are no other completed wells or wells capable of producing gas within the same governmental quarter section as the Albright Well, however as indicated on the plat, there is an abandoned Mobil well within the same governmental quarter section. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating that undersigned is acquainted with the facts and verifying that all facts are true and that the plat correctly portrays pertinent and required data. If you require additional information, you may contact me at 907-263-7882. Very Truly Yours, Land/Legal Analyst Enclosures VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA UOC#1030649 South Ninilchik Drilling Pad, Albright # 1 Well I, SHANNON W. MARTIN, Land/Legal Analyst, Union Oil Company of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Albright # 1 Well. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(2) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska this ltth day of APril 2001. // ,~n ~ ~laTrtin ' Land/Legal Analyst STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this ltl. th day of April 2001. ~ARYp~'B'L"IC i'N AND FOR THE STATE OF ALASKA My Commission expires: !///gf/O / Unocal Alaska Resou!C~,, Unocal Corporation 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 UNOCAL April 12, 2001 <<Contact)) <<Landowner)) <<Address)) <<City)), <<State)) <<Zip_Code)) NOTICE OF INTENT TO DRILL VIA CERTIFIED MAIL Dear <<Title)): Union Oil Company of California ("Unocal") is committed to the drilling of an exploratory well in the Southern Ninilchik area during 2001. Pursuant to the notice provisions of 20 AAC 25.055, and in conjunction with our application for a Permit to Drill, Unocal is notifying all landowners within 3,000' of the proposed drill site. As part of the notification process we have enclosed a plat identifying the proposed location of the "Albright #1 Well". We trust that this plat will be helpful in orientating you to the proposed location in relation to your property. Many of you have already signed an Oil & Gas Lease with us, and for those of you who have not, perhaps you've heard of our recent leasing efforts in the area. Unocal welcomes those of you who might have questions concerning our proposed leasing efforts to give us a call. We look forward to future contact with you in regards to this matter as we prepare to drill in South Ninilchik. Should you have any questions with regard to this notice, please feel free to contact me at (907) 263-7882, or Kevin A. Tabler, Manager of Land and Government Affairs, at (907) 263-7600. Very Truly Yours, Land/Legal Analyst Enclosure SAMPLE 202500 Exhibit A: (see Exhibit A-1 for associated TRACT information) 205000 207500 26 33 (row) ' : '/ 35 ";4o / ....... : ,;!' 35 ,/ 26 /' 26 .., ~.. ? , 400 0 400 Feet Scale: 1": 1000' 16 T01SR14W 2O 2O Alaska State Plane, Zone 4 North American Datum 1927 EXHIBIT A-l: SPACING EXCEPTION LANDOWNER/OWNER/OPERATOR NOTIFICATION [20 AAC 25.055 (d)('l)~] ... . .. . 1, .. ,.,:'. ..... "; .' .... .' . .~ .... '. :'.,.,, !l"..,,,...:'l,,.~'"~'~':.,,.".,' . ,' ' '. ..... ~[4. ,Ii..~ ........ i, '. ,.. , . , ,.:....~. ., ....,........ . ... I...~ ...~. ;. . :.~.~l .~ ...... ~1,,,,..., ..i '. ,., .,.... ..... ,..i,i ,i:, ....,,.il...,.....,..~i~...? : ~ ..... ~l~lF~,ll '~l.i..% l"!!,?...,.!l.~ ,. ~,.!~.....,. %'ii~ '.......,?.IL .... ,.....,; ~.'..,..ll?.., ,., ~,.... ........ i ,,. "., '"~',' "I~''~ ' !", i,,..l....i ,.... 'I ~i '.I.' '. ' " ".~' ..~' 11,'4~' , '".' '." ' '.i a ," '. · ....~ ,.'~ .' '" . ...... ' ~.~'..~. ~'. ~:.:..i".,' ,"~~~ ...._'.';~mar:Acld.ss.' .... ,,,,q,.,...,, ,~..,,~ ,', ;,,,, ,, I~,,;,vl~,,,.;,:'o,.--r.,,~'^~,',.s. IM,r~ral'Own.r;l SOUTH NINILCHIK (UNOCAL) ,' .... , ', ", , ',, · ;;,!Ii. ri' %,' '"'",,,,,,:~,' "," ": ' ' ,, '" .... ~'~"'i '";'""' 'i, '"' '':'~', '~' '" '" , ' "" ....... "'" ",,, ' , '" '=i;, "' ~" '"i '"~"¥' "';: ,:' '" !: ' ' .,',,' ''?~ ...... ",,,, .' ;' "!',::.,,',i [, !';~; ", ,;,' ;!, ,' ~:', ," ' "'! i!;~,"?'.~'; '", ', "!'~' ?';.' ~," :'~'"'~;:," ''~''' ~;:': ;,ii,'M ,,!,: ,:: ~i~ "'' ' ,'" '" "' :!'' ?'''''' :':'''~''=' ':;":'"'ii':':i'`;'l i': "? ' ';'~ '!:il'"'"""il ;'!,:'! ",~; ,, ,?' i'!":';'" '''~:'';I,','- ;i'I,,,,,:'"':,,¥,; ';i ' '' :," ",,;',!}.~,~?,'~1~[ill"?;,i ........... ;,' ' ,; ," ";[',,,,,,;",ii;,,; '";' '"' ~ ;;' ', ,,!:' "',,,,; ,,~il" '! ~?!,,",:,i .... : = ' '.:.~ ',:~',~':1, Ti~.'.!~!.' & ' ..'~ '.'.~d, '~: ~, P C Box ~414, Ke'~a .'d,: ' ; .... ~-- ...... 1 15 14W 24 NWl4 NVV/4 1030647 Walter Ward. Trustee Unocal Unocal N/A Walter Ward, Trustee 100.00%99611-3414 15703034 P.O. Box 39695, Ninllchik, 2 15 14W 24 NWI4 NW/4 Unleased Unleased Unleased ..N/A Naomi Selbert 100.,~00%. AK 99639-0895 ., 15703070 · McKibben Jackinsky & P.O. Box 3918~', Nlnilchlk, 3 lS .... 14W 24 NW/4 NWl4, .. Unleased Unleased Unleased N/A Emill/Long, 100.00%AK 99639-0187 . ........ ~, .... 15703071 P.O. Box 0024, Kasilof, AK 4 115 14W 24 NWl4 NWl4 Unleased Unleased Unleased :N/A Waller Jacklnskl/ 100.00%99610.0001 : 15703072 P,O. Box 39695, Ninilch~k. 5 15 14W 24 NW/4 NW/4 UnleaSed Unleased Unleased iN/A Shawn W. Jackinsky 100~00%AK 99639-0895 15703073 Glenn O. Jennison & Glenn O. Jennison & Lela P.O. Box 39407, Ninilchlk, 6 15 14W 24 NW/4 NW/4 1030650 Lela J. Jennison Unocal Unocal N/A J. Jennison 50.00% AK 99639-0407 Arthur D. Reina 50.00% Deceased 15703078 10704 Flagship Circle, 7 1S 14W 24 NE/4 NW/4 1030588 MD Blackard Unocal Unocal N/A MD Blackard 50,00% Anchorage, AK 99515-2430 Arthur D. Reina 50.00% Deceased 15703077 20504 Philadelphia Way, James D. Elledge and James D. Elledge and Eagle River, AK 99577- 8 15 14W 24 NW/4 NW,'4 1030670 Diane s. Elledlile. H:'W Unocal Unocal N~A Diane s. Elled~e. H.'W 50.00% 8496 Arthur D. Reina 50.00% Deceased 15703076 Steding Highway 9 15 14W 24 ROW Unleased Unleased Unleased NiA Arthur D. Reina 100.00% Deceased ROW 10 15 14W 24 NW/4 NW/4 Unleased Unleased Unleased N,,'A Arthur D. Reina 100.00% Deceased 15703043 P.O. Box 39391, Ninilchik, 11 15 14W 24 NE/4 NW/4 1030649 Ronald Bay Albri~ht Unocal I Unocal N/A Ronald Bay Albri~ht 100.00% AK 99639 15703017 W/2 NW/4 SW/4 396 Coral Drive, Pueblo 12 15 14W 24 NW/4 1030850 Karen Lalicker Harris Unocal Unocal N/A Karen Lalicker Harris 100.00% West, CO 81007 15703106 15703101 Gary 28635 Reflection Lake 15703103 Jackinsky/Kathleen P.O. Box 127, Ninilchik, AK Kathleen Rd., Soldotna, AK 15703104 13 15 14W 24 SW/4 NW/4 1030586 Jackinsk¥ (divorcedt Unocal Unocal N/A Gary Jackinsk¥ 50.00% 99639 Jackinsky 50.00% 99669 15703105 Lot 2, JACKINSKY TRACT B 1983 SUBDIVISION, Plat 3238 Lee Street, 14 15 14W 24 kiD. 83-116 1030901 Shawn & Myrle Wilson Unocal Unocal N/A Shawn & M~/rle Wilson 100.00% Anchora[le, AK 99504-3729 15703102 13710 Algonquin Drive, 15 IS 14W 24 N% SE1/4 NW% 1030340 Ma~aret J. Pearl Unocal Unocal N/A Margarat J. Pearl 100.00% Reno, NV 89511-7720 15703083 4758 Annadel Heights 16 IS 14W 24 S/2 SE/4 NW/41030373 Carral L. Charbonnier Unocal Unocal N/A Carrol L. Charbonnier 100.00% Drive, Santa Rosa 95405 15703084 State of Alaska State of Alaska 550 West 7th Avenue, Suite N/2 NE/4, E/2 SE/4 Department of Natural Departraent of Natural 800 Anchorage, Alaska 17 IS 14W 24 NE/4 1031011384375 Resources Unocal Unocal N/A Resources 100.00% 99501 15703080 State of Alaska State of Alaska 550 West 7th Avenue, Suite ~Department of Natural Department of Natural 800 Anchorage, Alaska 18 IS 14W 24 NW/4 SW/4 1031011384375 Resources Unocal Unocal N/A Resources 100.00% 99501 15703024 University of Alaska University of Alaska 910 Yukon Drive, Suite (Statewide Office of (Statewlde Office of Land 21 t/P.O. Box 755280, 19 15 14W 24 S/2 SW4 1029928 Land Mana~lement/ Unocal Unocal N/A Management/ 1100.00%Fairbanks, AK 99775-5280 15703075 SW/4 NE/4, NE/4 2525 C STREET, SUITE SW/4, SE/4, W/2 COOK INLET REGION COOK INLET REGION, 500, Anchorage, AK 99509- 15703079 20 15 14W 24 SE/4 NE/4 1029873C-060899 INC. Unocal Unocal N/A INC. '100.00%3330 15703074 · .' · . '.' :.." .i.'. ' "' " ..I . .. . ... . . . ....'. '::" · '.' :' ":.' .. ·. .' ' '. .... " :'" '... ': Estate of Clara L;, .' :;' · .. . · · . . . .. .. . : · . . .: : . . .... 7760 Mc~lu~e Cl'rcle · 'HAit.on,'C~,nthia ...'. :.... '. 8214 E: Nati~)r~al · · ' ' ' " " 6214 E. NatJo.nal Avenue, ' Anchorage, AK 9§5'~6 Hatton Baga~ov ..' ":...i. A~e'Rue. TucsOn, Az:. 15703212':. 21'. ' 1s 14w 23 · NE/4.NE/4 . . '.. . · Unleased · · ' Unleased · · Unleased' . . N/A stephen Wacl(owski 46.~J'.5%..' Tucson,.'Az;85768IThomas Brady". 3.85°/° ' 1'i31: ' : '" 'Administrator. ',:.; .50:00% 8570.8,."....... '...' 15703213:.. P.O. Box 39656, Ninilchik, 22 IS 14W 23 SE/4 NE/4 1029977 Willis S. EnterUnocal Unocal N/A Willis S. Enger 100,00%AK 99639-0656 15703211 P.O. Box 29, Kenai, AK 23 15 14W 123 SE/4 NE/4 1030546 Sharon Culhane Unocal Unocal N/A Sharon Culhane 100.00%99611-0029 15703210 · '.:. · .. :'. .. ·'.. ' ..... · .. : .... . .... . ..... ' Estate'o~ClaraL.'Hatt0rL . ...'.'.."..': ...: .:. .:"..... · .:.' ...:....: .: .'i.. .. .: ': :.: · :'..:i' :': ::': ."....'.' .: ....... :'. ........ .' ....:,:, · . ' .... . ... ' · ..: · Ster....ng Highway'.:... I: '. : ' . . ' ..'. . . ' . · .'· .' "" · :: · ' C~ni~ia"'l~ii0n"Bagar0v, ~2i4 E. N~ionallA~enu'e, ': I ' ':'"" ' "' "' .."" ' ' :' ' '' .:':':?::'.:'~:'~ .~?.':".' '" ' ' ' ' ' " ' 24 '": :15. '.14w 23. ~ ROW ...... .' · · Unleased': '. · .. U~le~sed..' Unleaded · ·.N/A:.'. ': ' ' · :Adm'inisi~tOt :" .." ·" i00.0~;.'" ~U~§<~n,~,:~'85~'08: ' ' ." " ,,;.":'"": ......... Esta',e o! Clara L. Haltcn 8214 E National I , 1.5703214 SE/4 SE/4 SF_/4 Cynthia Hatton Bagamv, 925 - 110th Avenue, N,E,, Steven M. Avenue, Tucson, AZ 115703215 ~25 1S 14W 14~ SE/4 Unleased Unleased Unleased N/A ,,Administrator 150.00% #PH6 Bellevue, WA 9800~, Wackowski 50.00% 85708 ,,, 15703216, Da[win E. & Kaye S. P, O, Box 39309 Estate of Doime PO BOX 39309 15703010 26 IS 14W 13, S/2 SW/4; ROW Unleased Unlea, sadUnleased N/A Waldsmlth 75.00% NInilchik, AK 99639-0309 U. WeSson 25.00% NinilChlk, AK 99639.309 15703011,, Deldre E. & John D. P,O. Box 87 Ninilchik, AK 5322 - 70th Avenue SE 15723001 !27 1S 14W 13 SI2 NW/4 SW/4 Unleased Unleased UnleaSed N/A ~cCombs 75~00% 99639 Carolee Pickett 125.00% Salem, OR 97301 ,,, 15723003 3201 "C" Street, Suite 800 P.O. Bo.x 264 Southwodh, 5323 - 70th Avenue SE 28 1S 14W 13 S/2 NWl4 SW/4 Walter Wilson Unocal Marathon. Oil company Anchora~le, AK 99503 Walter Wilson 75.00% WA 98386-0624 Carolee Pickett 25.00% Salem, OR 97301 15723004 15723005 15723006 67 I0 Abbott Loop Road 5324 - 70th Avenue SE 15723009 29 1S 14W 13 S12 NW!4 SWI4 Unleased Unleased Unleased N/A~'~ . Gailan B. Johnson 75.00% Anchora~le, AK 99507-2369 Carolee Pickett 25.00% Salem, OR 97301 15723012 12166. Belair Ddve, . 5325 - 70th Avenue SE .... 30 1S 14W 13 S/2 NWl4 SW/4 ., Unleased Unleased Unlea, s, ed N/A Steve Shmpshire 75,00% A~chora~le, AK 99517-1363 Carolee Pickett 25.00% Sale, m,, OR 97301 .......... 1,5723008, Bobby & Selena G. '5231 E. 42nd Avenue 5326 -' 70th'Avenue sE 31 1S 14W 113 S/2 NW/4 SW/4 Unleased lUnleased Unleased N/A' Gordon 75,00% Anch0ra~le, AK'99508-5707 Carolee, Pickett .... 25.00% · ISalem, OR 97301, . 15723010. 32 1S 14W 13 s/2. Nw/4 sw/4 Unleased IUnleased · Unleased . '?" N/A. · Michael. Roy Smith 75.00% spokai~e,.wA 9~206-8'314. ~a'role~.Pickett. ' 25:00%' Salem, OR '~7'301" :"' ,,. . ,,, ,' ,, ""'" 33 IS · 14W ' 13 s/2 NWl4 SW/4 :unleased. · Unleased .Unleased · ' · N/A Gale R. Graham '. 75:,00% i5917-97i1'. · ' · "'lCar°lee Plckeff ':. 125,00%. ' Salem, OR 9730.1' · ..' .! : , ' ·" 1572~013 . . .. .. . , . . , . · . . . ....' ...' 34 IS · 14W 13: ' S~2. NW/4'SW/4 .' UnleaSed Unleased.. .. N/A: . . Walte~;Wilson.. 75.00% WA.98386+0624'." · :. i 25':00%: Sal~m,.OR.'97301 '::' .... '. ".' . STREET' 15703096 15703095 15703094 15703061 15703062 15703063 15703064 State of Alaska 3201 "C" Street, Suite 800 State of Alaska 550 West 7th Avenue, Suite 15703065 Department of Natural Anchorage, AK 99503 Department of Natural 800 Anchorage, Alaska , 15703080, 39 1S 14W 13 E/2 1031009 38437; Resources Unocal/MOCO Marathon Oil company Resources 100.00%99501 ROW . .. Name and k ~.Registered [~lRetum Receipt Check appropriate block for Affix stamp here if issued as Registered Mail: certificate of mailing or for Address~ Lllnsured For Merchandise additional copies of this bill. of Sender F-ICOD [--llnt'l Recorded Del. E]With Postal Insurance ~Certified E]Express Mail [~Without Postal Insurance POSTMARK AND DATE OF RECEIPT Line Article Name of Addressee, Street, and Post Office Address Postage Fee Handling Act. Value Insured Due Sender R.R. S.D. S."H. I Rest. Del. Fee Number Ch, arge (If Rec~is.) Value If COD Fee Fee Fee Remarks 7oYI~ZZO oooZ I'O~\~¢n .~km~lc_M ,I- ~..mi t~ Lmq 2 o&qq 9,650 ~'-b-lbox 5'¢1 tfgq K~m~Xr~aik, RK CtqL059 .%d~ j. qo 1.5o qq ,o t;o / ~ 7o~~~z ~t,2 s. ~q~ .%oh~ ~$'~e¢ .%qI.~O , ,:<,...'. ..,,, ) 15o 5'q. ' """ ""'" ' .. h~-:'~':'., .,.',.-~ ,/ /' . ,. ,~,,~: ;~:~3;/ /. ~ Total Number of Pieces Total ~umber of Pieces POSTMASTER, PER (~a~e o] receiving e~ployee) The ~11 d~laration of v~ue is mquird o~ ~ domestic and in~rnational registerd mai. The m~mum i~dem~i~ Listed by Sender Received at Post Office ~yable for ae reconstruction of nonnegotiable documen~ under Express Maff document reconstruction insurance O S-- .... ~ ~ is ,50,~ per piece subject to a limit of ,5~,~ per occurr,nee. The maximum indemni, payable on Express ~ Ma~ Berch~dise insurance is $5~. The Baxiaum indeB~ payabte is $25,~ lbr regist6red ma~, sent wi~ op- ~ tion~ pos~ insurance, See Domestic Mail Manu~ 913 and 914 for libations of coverage on insurg and COD ~ail. See International Marl Manual for li~i~dons of mverage on intemation~ ma~. Speci~ handling charges appty PS Form 3877, April 1991 FORM MUST BE COMPLETED BY TYPEWRITER, INK OR BALL POINT PEN 'u.s. aovornmont Printing Office: 1992-- 330-392 imm !~ ~/~ OCli I. Adicate type of mail Check appropriate block for Affix stamp here ifissued as Name and ~, I IRcgistered [~Retum Receipt Registered Mail: certificate of mailing or for Address [-]Insured For Merchandise additional copies of this bill. of Senderg - ' [--ICOD [-IInt'l Recorded Del. ! (--IWith Postal Insurance , []~Certified [-~Express Mail [~Without Postal Insurance POSTMARK AND DATE OF RECEIPT Line Article Name of Addressee, Street, and Post Office Address Postage Fee Handling Act. Value Insured Due Sender R.R. S.D. S.H. Rest. Del. Fee Number Charge (If Regis.) Value , If COD Fee Fee Fee Remarks 1 Ogclq ~toCl ~r~c~orac~e, R~ flqSt'-I "~ 'l-~/C l 4 o~qq 'z.~5~ ~.a.k~ Kd. 5'o~a~+nct~¢~c -tq ut.q . ~t~ 1.cio /.Sc 7o"/q/~ZZo o=,c~Z_ f.~.fo..-~C ~v,rt'i~',,g-i-Fo,.+af,. -Do'~.txe_. tX. ~Oc%~n . 7 . 7o9q 5~oooc:,g. .5o~xn~l.*Eqh¢l E.T~atc'~on-'-C.o.'~:c..~qt59 Sq t.ct0 I.$° 10 7oqq 5~Zo aooZ gm,rd ~~ g~c~n+..-~.~.~Bq~q I .... Il Ill I Il I Il Total Number of Pieces Total Number of Pieces POSTMASTER, PER (Name of receiving employee) The ~11 d~laration of value is required on ~1 domestic and in~rnational register~ mail. The m~mum indemni~ Ltatod by Sender Received at Post Office ~yablc for ~e reconstruction of nonnegotiable documents under Express Mail document reconstruction insurance ~s $50,~ per piece subject t0 a limit of $5~,~ ~r occurrence, The maximum indemni~ payable on E~press ~ ~~ ...... ~ ~' _ Mail march.disc insurafice is $5~. The maximum m~mniW payable is $25,~ for registered marl, sent wi~ op- ~ tion~ postal insurance, See Domestic Mail Manual 913 and 914 for Ii.rations of coverage on insur~ and COD mail. See International MaU Manu~ for limitations of mverage on intemation~ maQ. S~ci~ han~ing charges apply ........... ~.¢~o.~a..~a.fo~.S~..e,,,.~,. , , , ...... PS Form 3877, April 1991 FORM MUST BE COMPLETED BY TYPEWRITER, INK OR BALL POINT PEN 'U.S. Government Printing OffiCe: 1992--330-392 .... ,,,o~.~ for Affix starrl:') I',:;ro ii m:;ue(.'! as Name and _Registered '3~.Rcturl~. Receipt Rc§istcrcd Mail: certificate of mailing or for Address . [-]insured For Mcrchsndisc additional copies of this bill. of Sender i--]COD E~Int'l Recorded Del. F-lWith Postal Insurance ~Ccrtificd. E]Express Mail ~ithout Postal Insurance POSTMARK AND DATE OF RECEIPT ,,, Linc Article Handling Act. Value Insured Due Sender R.R. !S. D. S.H. Rest. Del. Fee Number Name of Addressee, Street, and Post Office Address Postage Fee Charge (If Regis.) Value If COD Fee Fee Fee Remarks I 70?? 3W,,zo ~5OZ ~l,m,~o~t ~/TltCr-~_ ~,371'~-'''~ - '52 ~' 10 .......... : ~..~ .~) :, 'h ~ ''~ , ~ ~,') ~ c".:', ~: '.-~ :'~ ..... , .... 13 ~_~ ~4 / 15 TotalNumber of Pieces Total ~umber of Pieces POSTMASTER, PER (Name of receiving employee) The full d~laration of value is required on ~ domestic and inmrnational .... registerd mai. The m~mum indemni~ Listed by Sende/ Received at Post Office ~yable for ~e reconstruction of no~egotiable documents under Express Mai document r~onstmction insurance is $50,~ per piece subject to a limit of $5~,~ per occurrence. The maximum indemni~ payabl~ on Express ~ ~ O Marl merch~dise insurance is $5~. The inaximum indemni~ payable is $25,~ for registered marl, sent with op_ tionM post~ insurance. See Domestic Marl Manual 913 and 914 for Ii.rations of coverage on insur~ and COD ~ mail. See Intemation~ Marl Manu~ for l~mtions of ~verage on intemation~ marl. S~ci~ han~ing charges apply , only to ~d and fou~ class parcel. ~ ' .i ~i?:' ,' :7':: : ::! :!,:,:':1': '~ PS Form 3877, April 1991 FORM MUST BE COMPLETED BY TYPEWRITER, INK OR BALL POINT PEN °U.S. Government Prtntlng Ofitce: 1992-- 330-392 ';"t~'~ ,'..~' ~ ~ '~,t.'~z.,",,~ ..~. '..~ ".,,~.'~'.i:,~!::~,,~,::~.. ..,,-,:.-"~ .; ,..,;..?-:,. o. ~ :~.'..."'.. ~?,';:;' ..:.....: .: :',:,..."-,-'.'::..,,~.. ,'.~,t,:. ,-'., ~,..~-:' -. qE~,. '.:, -:',..'.c % . · s,~, ' ~,, .'~, ' ~ .... .~" '.'~ ','-',: ';/g..:.,o,,,.:, ,'a.,.~t~, ~'~:~',~;'~:,';:~".;,:':. -;' '::'-,':_"~';'~-' ',-,'-:'-,',,',; .',';".'.,:::-;'."'~ ','-' r.,:'...~,.:..;. ,, ~.'. ..... ;..: ..~, :.' . ..'.. . s..``~.``.`.:~:q~~.~`~`~````.%~`...`.:~....:`:~:~:.:;::`~E~?~..~...:``..:.::~..~..~:`.`~.`.=...s.:~.~:.~.~:~.:~.~;=....~:....:..:~.~-.. ..:..:.-.',.,:' -.. .... i'.'. · .. · ,, ~. =, .~' --=_~, .; -~..~,~,.'~ i~`~.`.~S~.~-5~`~::.~..~%%~.`.~`~:S~>~:~.`.-`~k~!~z~;~:~``~:~<~>c:~:. '..'...',.-.'.:' :,.. :. :.-...:... ..... .... ~ ~. ~ &-_'..~-~.,,....~,~ .... ~``~:.<-~`~<`.~..~.`.``~i.~`````:`````:...~`.~`.``~:~:.~:~.```:`~`.:``.::~`..```: ..... ..... .~ ' ~' '",'-' ~<-~ ........ ~" '~' ~=' '-~s'"':'.'"~,~',-', ....... "<:,"~',~,'.:~.,',':-',-:: ~.;,.., :,v..: This is my determination under AS 39.52.220 as to whether Commissioner Dan Seamount's involvement in the commission's determination of UNOCAL' s well spacing exception would result in a violation of AS 39.52.110 - 39.52.190. The commission action and the potential bases for a violation are described in the attached letter from Commissioner Seamount dated June 26, 2001. The pertinent provisions of the Executive Branch Ethics Act are AS 39.52.120(b)(4), which prohibits a public officer from taking or withholding official action in order to affect a matter in which the public officer has a personal or financial interest, and AS 39.52.110(b)(1) which in effect exempts situations in which the public officer's personal or financial interest in the matter is insignificant. The only facts described in Commissioner Seamount's letter that raise an issue are his stock ownership and options. The "matter" in question is the granting or denial ofUNOCAL's requested spacing exception. I find that the commission's decision in this matter would not have a significant effect on Commissioner Seamount's personal or financial interest. Consequently, my determination is that Commissioner Seamount's involvement would not violate AS 39.52.110 - 39.52.190. Does Commissioner Heusser have any objection to this determination? Without objection, Commissioner Seamount is allowed to participate under the Executive Branch Ethics Act. Apart from the Executive Branch Ethics Act, I would ask the representatives of both parties here today if either has any objection to Commissioner Seamount's participation in this matter. (It is my understanding that in order to disqualify a commissioner from participating it must be shown that the commissioner will not be able to make a fair and impartial decision-what is the basis for your objection to Mr. Seamount's participation?) #2 US Army Corps of Engineers Alaska District Regulatory Branch (i145b) Post Office Box 898 Anchorage, Alaska 99506-0898 Public Notice of Applicatiorr APR 09 2001 for Permit Anchorage PUBLIC NOTICE DATE: 5 April 2001 EXPIRATION DATE: REFERENCE NUMBER: WATERWAY UMBER: 7 May 2001 4-2001-0261 Ninilchik River 5 Interested parties are hereby notified that an application has been received for a Department of the Army permit for certain work in waters.of the United States as described below and shown on the attached plan. APPLICANT: Unocal Alaska Resources, 909 West 9tn Avenue., P.O. Box 196247, Anchorage, Alaska 99519-6247. LOCATION: SW h of Section 15, Township 02 South, Range 13 West, c=. ~ ~^-~ near Ninilchik, Alaska. Longitude 151°29'17.763'' Latitude 60°00'03.882''. Site access: Sterling Highway to Ninilchik(Oilwell). Road. WORK: 28,130 cubic yards of gravel fill will be used to construct an oil and gas well pad. PURPOSE: Oil and gas expl.oration. ADDITIONAL INFORMATION: Agent is Faye Sullivan, Unocal Advising Environmental Scientist, Phone (907) 263-7685. The project is referred to as NNA2 in maps and diagrams. Project NNA! is in a non-wetland area. The NNA2 project consists of a 3.5 acre footprint in a wetland area consisting of soil classified as Spenard Silt Loam. No stream crossings will.occur. The wetland drains to the south to an unnamed pond. Depth of fill is approximately 3.0 feet. When appropriate, existing gravel and native soils made available during site preparation will be utilized for road and pad construction improvements. The drill pad site will be approximately 300'x 400'with berming around the pad to prevent extraneous fluids from escaping the drill site. The facility will serve as a drilling site for surface and subsurface gas exploration wells and as a temporary storage for drilling waste. The storage pits will be lined to prevent the loss of fluids. The seasonal high groundwater table is anticipated to be within 20 feet of the storage facility. An access road approximately 50'x 20' will be constructed to access the site from Oilwell Road. In the event the well proves unproductive, cleanup of the location will begin immediately. Ail remaining.drilling wastes will be properly disposed and the well plugged for abandonment. WATER QUALITY CERTIFICATiONi A permit for the described work will not be issued until a certification or waiver of certificati¢~n as required under Section 401 of the Clean Water Act (Public Law 95-217), has been received from the Alaska Department of EnvirOnmental Conservation. COASTAL ZONE EANAGEMENT ACT CERTIFICATION: Section 307(c) (3) of the Coastal Zone, Management Act of 1972, as amended by 16 U.S.C. 1456(c) (3), requires the applicant to certify that the described activity affecting land or water uses in the Coastal Zone complies with the Alaska Coastal Management Program. A permit will not be issued until the Office of Management and Budget} Division of Governmental Coordination has concurred with the applicant's certification. PUBLIC HEARING: Any person may request, in writing, within the comment period specified in this notice, that a public hearing' be held to consider this application. Requests for public hearings shall state, with particularity, rea.sons for holding a public hearing. CULTURAL RESOURCES: The latest published version of the Alaska Heritage Resources Survey (AHRS) has been consulted for the presence or absence of historic properties, iscluding those listed in or eligible for inclusion in the National Register of Historic Places. There are no listed or eligible properties in the vicinity of the worksite. Consultation of the AHRS constitutes the extent of cultural resource investigations by the District Engineer at this time, and he is otherwise unaware of the presence of such resources. This'application is being coordinated with the State Historic Preservation Office (SHPO) . Any comments SHPO may have concerning presently unknown archeological or historic data that may be lost or destroyed by work under the requested permit will be considered in our final assessment of the described work. ENDANGERED SPECIES: Preliminarily, the described activity .will not affect threatened or endangered species, or their critical habitat designated as endangered or threatened, under the Endangered Species Act of 1973 (87 Stat. 844). This application is being coordinated with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service. Any comments they may have concerning endangered or threatened wildlife or plants or their critical habitat will be considered in our final assessment of the described work. ESSENTIAL FISH HABITAT: The proposed work is being evaluated for possible effects to Essential Fish Habitat (EFH) pursuant to the Magnuson Stevens Fishery Conservation and Management Act of 1996 (MSFCMA), 16 U.S.C. et se~ and associated federal regulations found at 50 CFR 600 Subpart K. The Alaska District includes areas of EFH as Fishery Management Plans. We have reviewed the January 20, 1999, North Pacific Fishery Management Council's Environmental Assessment to locate EFH area as identified By the National Marine Fisheries Service (NMFS) . We have determined that the described activity within the proposed area will not adversely affect EFH, including anadromous fish and federally managed fishery resources. SPECIAL AREA DESIGNATION: None. EVALUATION: The decision whether to issue a permit will be based on an evaluation of the probable impacts including cumulative impacts of the proposed activity and its intended use on the public interest. Evaluation of the probable impacts which the proposed activity may have on the public interest requires a careful weighing of all those factors which become relevant in each particular case. The benefits which reasonably may be expected to accrue from the proposal must be balanced against its reasonably foreseeable detriments. The decision whether to authorize a proposal, and if so, the conditions under which it will be allowed to occur, are therefore determined by the outcome of the general balancing process. That decision should reflect the national concern for both protection and utilization of important resources. Ail factors which may be relevant to the proposal must be considered including the cumulative effects thereof. 'Among those are conservation, economics, aesthetics, general environmental concerns, wetlands, cultural values, fish and wildlife values, flood hazards, floodplain values, land use, navigation, shore erosion and accretion, recreation, water supply and conservation, water quality, energy needs, safety, food and fiber production, mineral needs, considerations of property ownership, and, in general, the needs and welfare of the people. For activities involving 404 discharges, a permit will be denied if the discharge that would be authorized by such permit would not comply with the Environmental Protection Agency's 404(b) (1) guidelines. Subject to the preceding sentence and any other applicable guidelines or criteria (see Sections 320.2 and 320.3), a permit will be granted unless the District Engineer determines that it would be contrary to the public interest. The Corps of Engineers is soliciting comments from the public; Federal, State, and local agencies and officials; Indian Tribes; and oth'er interested parties in order to consider and evaluate the impacts of this proposed activity. Any comments received will be considered by the Corps of Engineers to determine whether to issue, modify, condition or deny a permit for this proposal. To make this decision, comments are used to assess impacts on' endangered species, historic properties, water quality, general environmental effects, and the other public interest factors listed above. Comments are used in the preparation of an Environmental Assessment and/or an Environmental Impact Statement pursuant to the National Environmental Policy Act. Comments are also used to determine the need for a public hearing and to determine the overall public interest of the proposed activity. Comments on the described work, with the reference number, should reach this office no later than the expiration date of this Public Notice to become part of the record and be considered in the decision. Please contact Daniel L. Smith at (907) 753-2724 or toll free in Alaska at (800) 478-2712, if further information is desired concerning this notice. AUTHORITY: 'This permit will be issued or denied under the following authorities: (X) Discharge dredged or fill material into waters of the United States - Section 404 Clean Water Act (33 U.S.C. 1344). Therefore, our public interest review will consider the guidelines set forth under Section 404(b) of the Clean Water Act (40 CFR 230). A plan, Notice of Application for Certification of Consistency with the Alaska Coastal Management Program, and Notice of Application for State Water Quality Certification are attached to this Pmblic Notice. Attachments District Engineer U.S. Army, Corps of Engineers ¸--3-- SITE LOCATION REFERENCE: USGS TOPOGRAPHIC MAP, 1:63,360 NORTH 0 1/2 1 2 APPROXIMATE SCALE IN MILES Sit® Locatio~ a~d ¥ic~it~ Hap FIGURE ESn A ~CTEC COaPAN*/ Un~tNinild~ikNa~veAssoda~onProjea D~WN PROJECT NUMBER ~PROVED DATE ~NILCHIK RIVER 5~ Unocal Nir~i~ch~k ~,~¥e Association Project Ninilcbik ~A¢~Aa PROJECT NUMBER ;f~7;~,~ ~. ~j ~j~ JP 52468 01t01 90' --~ Temporary Waste Storage Pit 170' Temporary Waste Storage Tankage '--,. loo' Drilling Rig Foot Print CD Wellbore 300' Plan View (Not to Scale) NINILCHIK RIVER 5, #4-2001-0261 400' Flare , Pit UNOCALe) Proposed Layout Typical NNA Well Site Layout Kenai Peninsula Borough State of Alaska Date: FEB '00 TEMP. WASTE STORAGE PIT DRAINAGE SUMP W/ 20 MIL HDPE LINER / '""" o.$ FLARE PIT WATER WELL SCALE 1 inch = lOOft. 0 100 150 2OO 400, NINILCHIK RIVER _5, #4-2001-0261 APPLICANT: 909 W. 9th Avenue Anchoroge, AN 995'19-7685 McLANE Engineers, Surveyors and Planners P.O. Box 468 Soldotno, AK 99669 NNA2 DRILLING PAD Sheet 2 of 3 LOCATION: 3762' FNL SECTION 15 1761' FEL T2S R13W SM AK Dwg: 014003dc Date: 2/28/01 PAD DATA: FILL:' 28,130 CY CLEARED AREA- FIGURE: 4 3.5 ACRES DRILLING PAD CROSS SECTION VIEW NOT TO VERTICAL SCALE DOUBLE HDPE LINER X 2' PERIMETER BERM _ ORIGINALI ~/ __o. I 2 jj~,,~ ~ GROUND '..~ -------O.b~ ..... .~_./~....-..~~, . . ~ ~ "~:.'". ' {'. ,. ..... '" '. -".~...: ,"..":. '.~ ~ L:', :~-..'." -. -'- '.':.', %~2~ M N. (NS . ~~v CLEARING LIMITS 5' BEYOND TOE OF SLOPE SCALE 1 inch = 100 ft. 0 100 150 2O0 SCALE 1 inch = 1 Mile 0 1 1.50 2.00 NINILCHIKP,.IVER 5, #4-2001-0261 APPLICANT: UNOCAL 909 W. 9th Avenue Anchorage, AK 99519-7685 McLANE Engineers, Surveyors and Plonners P.O. Box 468 Soldotno, AK 99669 I I lT25 4 3 2 i lO OILWELL ROAD 1 T 11 GRID N: 2199461.972 IGRID E: 230027[988 LATITUDE: 60'00144.587" jNoNA1LONGITUDE: 151'18'31.482" 1200 ROAD NNA2 GRID N: 2195385.779 13 GRID E: 227582.1902 LATITUDE: 60'00'03.882" ILONGITUDE: 151':~9'17.763" TYPICAL DRILLING PAD CROSS VIEW AND VICINITY MAP Sheet 3 of 3 LOCATION: NNA1 & NNA2 NINILCHIK, AK Dwg: 014003dc Date: 2/28/01 [ FIGURE: 4 TONY KNOWLES, GOVERNOR STATE OF ALASKA OFFICE OF THE GOVERNOR DEPT. OF ENVIRONMENTAL CONSERVATION DIVISION OF AIR AND WATER QUALITY Non-Point Source Control Section 401 Certification Program NOTICE OF APPLICATION FOR STATE WATER QUALITY CERTIFICATION Any applicant for a federal license or permit to conduct an activity that might result in a discharge into navigable waters, in accordance with Section 401 of the Clean Water Act of 1977 (PL95-217), also must apply for and obtain certification from the Alaska Department of Environmental Conservation that the discharge will comply with the Clean Water Act, the Alaska Water Quality Standards, and other applicable State laws. By agreement between the U.S. Army Corps of Engineers and the Department of Environmental Conservation, application for a Department of the Army permit to discharge dredged or fill material into navigable waters under Section 404 of the Clean Water Act also may serve as application for State Water Quality Certification. Notice is hereby given that the application for a Department of the Army Permit described in the Corps of Engineers' Public Notice No. #4-2001-0261, Ninilchik River 5 serves as application for State Water Quality Certification from the Department of Environmental Conservation. After reviewing the application, the Department may certify that there is reasonable assurance that the activity, and any discharge that might result, will comply with the Clean Water Act, the Alaska Water Quality Standards, and other applicable State laws. The Department also may deny or waive certification. Any person desiring to comment on the project with respect to Water Quality Certification may submit written comments within 30 days of the date of the Corps of Engineer's Public Notice to: Department of Environmental Conservation WQM/401 Certification 555 Cordova Street Anchorage, Alaska 99501-2617 Telephone: (907) 269-7564 FAX: (907) 269-7508 TONY KNOWLES, GOVERNOR STATE O'F ALASKA OFFICE OF THE GOVERNOR OFFICE OF MANAGEMENT AND BUDGET DIVISION OF GOVERNMENTAL COORDINATION SOUTHCENTRAL REGIONAL OFFICE 550 W. 7th Avenue, Suite 1660 ANCHORAGE, ALASKA 99501 PHONE: (907) 269-7470/FAX: (907) 269-3981 NOTICE OF APPLICATION FOR CERTIFICATION OF CONSISTENCY WITH THE ALASKA COASTAL MANAGEMENT PROGRAM Notice is hereby given that a request is being filed with the Division of Governmental Coordination for a consistency determination, as provided in Section 307(c)(3) of the Coastal Zone Management Act of 1972, as amended [16 U.S.C. 1456(c)(3)], that the project described in the Corps of Engineers Public Notice No. #4-2001-0261~ Ninilchik River 5, will comply with the Alaska Coastal Management Program and that the project will be conducted in a manner consistent with that program. The Division of Governmental Coordination requests your comments, particularly on the proposed project's consistency with the affected local coastal district management program. For mOre information on the consistency review process, comment deadlines, and the affected coastal district status, or to submit written comments, please contact the Division of Governmental Coordination at 550 W. 7th .Avenue, Suite 1660, Anchorage, Alaska 99501, (907) 269-7470. Attachment 2 Department of the Army Alaska District, Corps of Engineers ATTN: CEPOA-CO-R (C) P.O. Box 898 Anchorage, Alaska 99506-0898 FIRST CLASS MAIL U.S. POSTAGE PAID ANCHORAGE, ALAS;(.:~. PERMIT NO. 80~l~ (M 246) ALASKA OIL & GAS CONSERVATION COMMISSION 333 W 7'~'IIII AVENUE SUITE 100 ANCHORAGE ALASKA 99501-3539 #1 Unocal Corporation (' Agricultural Products 909 West 9th Avenue, P. O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 263-7685 Facsimile (907) 263-7901 Faye W. Sullivan Advising Environmental Scientist UNOr. AL ) March 27, 2001 Ms. Kaye Laughlin, Liaison State Pipeline Coordinator's Office Division of Governmental Coordination 411 W. 4th Avenue, Suite 2-C Anchorage, Alaska 99501-2343 Albright No. 1 & 2 and Pearl No. 1 & 2 Gas ExPloration Program Dear Kaye: Enclosed please find the completed Coastal Project Questionnaire and supporting application materials for Unocal's Albrigh't No. 1 & 2 and Pearl No. 1 & 2 gas exploration well drilling program to begin this spring and summer. Copies of the Temporary Water Use Permit Application, th'e Temporary Waste Storage Plan Approval, and Corps of Engineers 404 Permit Application are also enclosed as is a Project Description Document. Please note that the original Temporary Water Use Permit with the required fee was submitted directly to the Department of Natural Resources. Please contact me at 263-7685 if you have questions 'or need additional information on the enclosed materials.Thank you for your help. Enclosures Cc: Sincerely, Faye/~. Sullivan Judd Peterson, ADEC, Solid Waste Program Tim Rumfelt, ADEC 401 Cert. Program Gary Prokosch, ADNR, DMLW, Water Section Judy Bittner, ADNR, SHPO Jim Haynes, ADNR, DO&G Stewart Seaburg, ADF&G, Habitat Dan Bevington, KPB Houston Hannafious, COE Ted Rockwell, EPA Gary Wheeler, FWS Jeanne Hanson, NOAA/NMFS Dan Seamount, 'AOGCC Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department if you answer "yes" to any of the questions related to that department. Maps and plan drawings must be included with your packet. An incomplete packet will be returned. [] APPLICANT INFORMATION 1. Union Oil Company of CA dba Unocal 2. Name of Applicant P.O. Box 196247 Address. Anchorage, AK 99519 City/State Zip Code (907)-276-7600 Daytime Phone (907)-263-7828 Fax Number E-mail Address Faye W. Sullivan, Environmental Scientist Agent (or responsible party if other than applicant) Same Address Same City/State State Zip Code Zip Code (907)-263-7685 Daytime Phone (907)-263-7901 Fax Number sullifw®unocal.com E-mail Address [] PROJECT INFORMATION 1. This activity is a: X new project [] modification or addition to an existing project If a modification, do you currently have any State, federal or local approvals related to this activity? ........................................................................................................................... X Note: Approval means any form of authorization. If "yes," please list below: Approval Type Approval # Issuance Date Expiration Date ADEC Air Quality Permit to Operate A-0000-61 10/6/97' None *Application Date Yes No . If a modification, has this project ever been reviewed by the State of Alaska under the ACMP? ........ [] Previous State I.D. Number: AK Previous Project Name: X [] PROJECT DESCRIPTION 1. Provide a brief description of your entire project and ALL associated facilities an~ land use conversions. Attach additional sheet(s) as needed. See Attached Project DescriPtion, Summary follows: Drilling of up to two gas exploration wells from one of two locations. Private surface and subsurface. Possible well testing pending results of drilling. Access: From sterling Highway mi 131.8, then via new gravel access road across private surface to the selected drilling location. No stream crossings. Possible wetland fill for road and pad construction. No onsite camp or domestic waste or wastewater discharges at the well sites. Temporary water use only. Temporary onsite storage of drill muds and curings. Proposed starting date for project: Estimate: 6/1/01 Proposed ending date for project: First Well Drilling: Approx. 50 days from actual start of Drilling. Drilling and Testing of both wells to be completed by: 12/31/02. 2. Attach the following: · a detailed description of the project, al1 assOciated facilities, and land use conversions, etc. (Be specific, including access roads, caretaker facilities, waste disposal sites, etc.); · a project timeline for completion of all major activities in the proposal; · a site plan depicting property boundary with all proposed Revised 1/99 Page 1 actions; · other supporting documentation that would facilitate review of the project. Note: If the project is a modification, identify existing facilities as well as proposed changes on the site plan. Attached. · PROJECT LOCATION 1. Attach a copy of the topographical and vicinity map clearly indicating the location of the project. Please include a map title and scale. See Attached Project Description 2. The project is located in which region (see attached map): [] Northern X Southcentral [] Southeast [] within or associated with the Trans-Alaska Pipeline corridor . Location of project (Include th'e name of the nearest land feature or body of water.)--. 3.5 mi North of Ninilehik, AK Township IS Range 14W Sections 2__4 Meridian Seward Latitude/Longitude __/__USGS Quad Map Kenai,A5 . Is the project located in a coastal district? Yes X No [] If yes, identify: Kenai Peninsula Borough (Coastal districts are a municipality or borough, home rule or first class city, second class with planning, or coastal resource service area.) Note: A coastal district is a participant in the State's consistency reviewprocess. It is possible for the State review to be adjusted to accommodate'a local permitting public hearing. Early interaction with the district is important; please contact the district representative listed on the attached contact list. 5. Identify the communities closest to your project location: Ninilchik, AK , The project is on: [] State land or water* [] .Federal land X Private land [] Municipal land [] Mental Health Trust land *State land can be uplands, tidelands, or submerged lands to 3 miles offshore. See Question #1 in DNR section. Contact the applicable landowner(s) to obtain necessary authorizations. · DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS Yes 1. Will a discharge of wastewater from industrial or commercial operations occur? ................................ [] Will the discharge be connected to an already approved sewer system? ............................................... [] Will the project include a stormwater collection/discharge system? ...................................................... [] . Do you intend to construct, install, modify, or use any part of a wastewater (sewage or greywater) disposal system? ............................................................................................................ [] a) If so, will the discharge be 500 gallons Per day or greater? ............................................................ [] b) If constructing a domestic"wastewater treatment or disposal system, will the system be located within fill material requiring a COE permit?. ................... 2 .............................. :.. [] If you answered yes to a) or b), answer the following: 1) What is the distance from the bottom of the system to the top of the subsurface water table? 2) How far is any part of the wastewater disposal system from the nearest surface water? 3) Is the surrounding area inundated with water at any time of the year? ........................................... [] 4) How big is the fill area to be used for the absorption system? (Questions 1 & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size of the fill if wetlands are involved.) , Do you expect to request a mixing zone for your proposed project? [] (If your wastewater discharge will exceed Alaska water quality standards, you may apply for a mixing zone. If so, please contact DEC to discuss information required under 18 AA C 70. 032.) No X X X X [] X Revised 1/99 Page 2 . a) Will your project result in the construction, operation, or closure of a facility for the disposal of solid waste? No facility. Temp. Drilling Waste Storage Only ........... [] (Note: Solid waste means drilling wastes, household garbage, refuse, sludge, construction or demolition wasi'es, industrial solid waste, asbestos, and other discarded, abandoned, or unwanted solid or semi-solid material, whether or not subject to decomposition, originating from any source. Disposal means placement of solid waste on land.,) b) Will your project result in the treatment of solid waste at the site? ............................................... [] (Examples of treatment methods include, but are not limited to: incineration, open burning, baling, and composting.) c) Will your project result in the storage or transfer of solid waste at the site? ................................. [] d) Will the project result in the storage of more than 50 tons of materials for reuse, recycling, or resource recovery? ................................................ ~ .................................................................... [] e) Will any sewage solids or biosolids be disposed of or land-applied to the site? ........................... [] (Sewage solids include wastes that have been removed from a wastewater treatment plant system, such as a septic tank, lagoon dredge, or wastewater treatment sludge that contain no free liquids. Biosolids are the solid, semi-solid, or liquid residues produced during ihe treatment of domestic septage in a treatment works which are land applied for beneficial use.) 5. Will your project require the application of oil, pesticides, and/or any other broadcast chemicals?. ....[] , a) Will you have a faci. lity with industrial processes that are designed to process no less thanfive tons per hour and needs air pollution controls to comply with State emission standards?. ..........[] b) Will you have stationary or transportable fuel burning equipment, including flares, with a total fuel consumption, capacity no less than 50 million Btu/hour? ..................................... X c) Will you have a facility with incinerators having a total charging capacity of no less than 1,000 pounds per hour? .......................................................................................................... [] d) Will you have a facility with equipment or processes that are subject to Federal New Source Performance Standards or National Emission Standards for hazardous air pollutants? .... [] 0 Will you propose exhaust stack injection? .............................................................................. [] e) Will you have a facility with the potential to emit no less than 100 tons per year of any regulated air contaminant? .................................................................................................. .~ .......... [] f) Will you have a facility with the potential to emit no less than 10 tons per year of any hazardous air contaminant or 25 tons per year of all hazardou's air contaminants? ....................... [] g) Will you construct or add stationary or transportable fuel burning equipment of no less than 10 million Btu/hour in the City of Unalaska or the City of St. Paul?. .................................... [] h) Will you construct or modify in the Port of Anchorage a volatile liquid storage tank with a volume no less than 9,000 barrels, or a volatile liquid loading rack with a design throughput no less than 15 million gallons? ............................ ; ...................................................... [] i) Will you be requesting operational or physical limits designed to reduce emissions from an existing facility in an air quality nonattainment area to offset an.emission increase from another new of modified facility? .......................................................................................... [] 7. Will you be developing, constructing, installing, or altering a public water system?. ........................... [] . a) Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non-crude oil as bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? ............................................... [] b) Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of greater than .5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ............................................................................ [] c) Will you be operating facilities on the land or water for the exploration or production of hydrocarbons? .................................................................................................. . ........................... X NO X X X X X X X X X X X X X X X X X X Revised 1/99 Page 3 If you answered "NO" to ALL questions in this section, continue to next section. If you answered "YES" to ANY of these questions, contact the DEC office nearest you for information and application forms. Please be advised that all new DEC permits and approvals require a 30-day public notice period. DEC Pesticide permits take effect no sooner than 40 days after the permit is issued. Based on your discussion with DEC, please complete the following: Types of project approvals or permits needed Date application submitted ADEC Temporary Waste Storage Permit Concurrent with this CPQ ADEC 401 Certificate of Reasonable Assurance for 404 Permit Concurrent with this CPQ YES .... NO 9. Does your project qualify for a general permit for wastewater or solid waste? ..................................... [] X. Note: ,4 general permit is an approval issued by DEC for certain types of routine activities. If you answered "YES" to any questions in this section and are not applying for DEC permits, indicate reason: [] Greg Drzewiecki (DEC contact) told me on 3/14/01 that DEC required engineering and storm water pollution prevention plans may be submitted to DEC independently of this CPQ and permit packet provided they are received with adequate time for DEC review. [] Other: · DEPARTMENT OF FISH & GAME (DFG) APPROVALS Will you be working in, removing water or material from, or placing anything in, a stream, river or lake? (This includes work or activities below the ordinary high water mark or on ice, in the active flood plain, on islands, in or on the face of the banks, or, for streams entering or flowing through tidelands, above the level of mean lower low tide.) Note: If the proposed project is located within a special flood hazard area, a floodplain development permit may be required. Contact the affected ciO, or borough planning department for additional information and a floodplain determination.) ............... Name of waterbody: 2. Will you do any of the following: ............................................................................................................ Please indicate below: [] Build a dam, river training structure, other instream impoundment, or weir Use the water Pump water into or out of stream or lake (including dry channels) [] Divert or alter the natural stream channel [] Change the water flow or the. stream channel [] Introduce silt, gravel, rock, petroleum products, debris, brush, trees, chemicals, or other organic/inorganic material, including waste of any type, into the water [] Alter, stabilize or restore the banks of a river, stream or lake (provide number Of linear feet affected along the bank(s) [] Mine, dig in, or remove material, including woody debris, from the beds or banks of a waterbody [] Use explosives in or near a waterbody [] Build a bridge (including an ice bridge) [] Use the stream, lake or waterbody as a road (even when frozen), or cross the stream with tracked or wheeled vehicles, log-dragging or excavation equipment (backhoes, bulldozers, etc.) [] Install a culvert or other drainage structure [] Construct, place, excavate, dispose or remove any material below the ordinary high water of a waterbody [] Construct a stOrm water discharge or drain into the waterbody [] Place pilings or anchors [] Construct a dock [] Construct a utility line crossing [] Maintain or repair an existing structure [] Use an instream in-water structure not mentioned here X X Revised 1/99 Page 4 Yes 3. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Game Sanctuary? ........................................................................................................................... [] 4. Does your project include the construction/operation of a salmon hatchery?. ....................................... [] 5. Does your project affect, or is it related to, a previously permitted salmon hatchery? .......................... [] 6. Does your project include the construction of an aquatic farm? ............................................................ [] If you answered "No" to ALL questions in this section, continue to next section. If you answered "Yes" to ANY questions under 1-3, contact the Regional or Area DFG Habitat and Restoration Division Office for information and application forms. If you answered "Yes" to ANY questions under 4-6, contact the DFG Commercial Fisheries Division headquarters for information and application forms. Based on your discussion with DFG, please complete the following: Types of project approvals or permits needed Date application submitted No X X X X If you answered "YES" to any questions in this section and are not applying for DFG permits, indicate reason: [] (DFG contact) told me on that no DFG approvals are required on this project because [] Other: · DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS 1. Is the proposed project on State-owned land or water or will you .need to cross State-owned land for access? ("Access" includes temporary access for construction purposes. Note: In addition to State-owned uplands, the State owns almost all land below the ordinary high water line of navigable streams, rivers and lakes, and below the mean high tide line seaward for three miles..l ........................................................................................................ [] a) Is this project for a commercial activity? .............................................................. . ........................... [] 2. Is the project on Alaska Mental Health Trust land (AMHT) or.will you need to cross AMHT land? Note: zllaska Mental Health Trust land is not considered State land for the purpose of ACMP reviews ................. ~ ............... [] o Do you plan to dredge or otherwise excavate/remove materials on State-owned land? ........................ [] Location of dredging site if different than the project site: Township Range Section Meridian USGS Quad Map , Do you plan to place fill or dredged material on State-Owned land? ..................................................... [] Location of fill disposal site if other than the project site: Township Range Section Meridian USGS Quad Map Source is on: [] State Land [] Federal Land [] Private Land [] Municipal Land , Do you plan to use any of the following State-owned resources: .......................................................... [] [] Timber: Will you be harvesting timber? Amount: [] Materials such as rock, sand or gravel, peat, soil, overburden, etc.: ............................................... Which material? Amount: Location of source: [] Project site [] Other, describe: Township Range Section Meridian USGS Quad Map X [] X X X. X Revised 1/99 Page 5 o Yes Are you planning to divert, impound, withdraw, or use any fresh water, except from an existing public water system or roof rain catchment system (regardless of land ownership).9. ............................ X Amount (maximum daily, not average, in gallons per day): 1000bbls/d¥ Source: New water well Sec. 24, T1S~ R14W Intended Use: Mud system, drilling/rig operations If yes, will your project affect the availability of water to anyone holding water rights to that water?l-iX No 7. Will you be building or altering a dam (regardless of land ownership)? ............................................... [] X 8. Do you plan to drill a geothermal well (regardless of land ownership)? ............................................... [] X 9. At any one site (regardless of land ownership), do you plan to do any of the following? .... · [] [] Mine. five or more acres over a year's time [] Mine 50,000 cubic yards or more of materials (rock, sand or gravel, soil, peat, overburden, etc.) over a year's time [] Have a cumulative unreclaimed mined area of five or more acres X If yes to any of the above, contact DNR about a reclamation plan. If you plan to mine less than the acreage/amoUnt stated above and have a cumulative unreclaimed mined area of less than five acres, do you intend to file a voluntary reclamation plan for approval?r'l[] 10. Will you be exploring for or extracting coal? ...... ........................................................................... [] X 11. a) Will you be exploring for or producing oil and gas? .............. .......... · ............................. X [] b) Will you be conducting surface use activities on an oil and gas lease or within an oil and gas unit?F1 X 12. Will you be investigating, removing, or impacting historical or archaeological or paleontological resources (anything over 50 years old) on State-owned land? ............................................................... [] , , 13. Is the proposed project located within a known geophysical hazard area? ............................................ [] Note: 6 AA C 80. 900(9). defines geophysical hazard areas as "those areas which present a threat to life or property from geophysical or'geological hazards, including flooding, tsunami run-up, storm surge run-up, landslides, snowslides, faults, ice hazards, erosion, and littoral beach process." "known geophysical hazard area" means qny area identified in a report or map published by a federal, state, or local agency, or by a geological or engineering consulting firm, or generally known by local knowledge, as having known or potential hazards from geologic, seismic, or hydrologic processes. X X 14. Is the proposed project located in a unit of the Alaska State Park System? ................. ' ................. [] If you answered "No" to ALL questions in this section, continue to Federal Approvals section. If you answered "Yes" to ANY questions in this section, contact DNR for information. X Based on your discussion with DNR, please complete the following: Types of project approvals or permits needed ADNR Temp. Water Use Permit for new water well Date application submitted Concurrent with this CPQ If you answered "YES" to any questions in this.section and are not applying for DNR permits, indicate reason: [] (DNR contact) told me on that no DNR approvals are required on this project because [] Other: Revised 1/99 Page 6 · FEDERAL APPROVALS Yes U.S. Army Corps of Engineers (COE) 1. Will you be dredging or placing structures or fills in any of the following: tidal (ocean) waters? streams? lakes? wetlands*? ................................................................................... X If yes, have you applied for a COE permit? ..................................................................................... X Date of submittal: Concurrent with this CPQ, Copy attached. (Note: Your application for this activity to the COE also serves as application for DEC Water Quality Certification.) *If you are not certain whether your proposed project is in a wetlands (wetlands include muskegs), contact the COE, Regulatory Branch at (907) 753-2720for a wetlands determination (outside the Anchorage area call toll free 1-800-478-2712). Bureau of Land Management (BLM) 2. Is the proposed project located on BLM land, or will you need to cross BLM land for access? ........... [] If yes, have you applied for a BLM permit or approval? ................................................................ [] Date of submittal: U.S. Coast Guard (USCG) 3. a) Will you be constructing a bridge or causeway over tidal (ocean) waters, or navigable rivers, streams or lakes? ...... ~ ....................................................................................................................... [] b) Does your project involve building an access to an island? ............................................................ [] c) Will you be siting, constructing, or operating a deepwater port? ......... : .......................................... [] If yes, have you applied for a USCG permit? ........................................................................... [] Date of submittal: U.S. Environmental Protection Agency (EPA) 4. a)~ Will the proposed project have a discharge to any waters? ............................................................. [] b) Will you be disposing of sewage sludge (contact EPA at 206-553-1941)? ..................................... [] If you answered yes to a) or b), have you applied'for an EPA National Pollution Discharge Elimination System (NPDES) permit? ...................................................................................... [] Date of submittal: (Note: For information regarding the need for an NPDES permit, contact EPA at (800) 424-4372.) c) Will construction of your project expose 5 or more acres of soil? (This applies to the total amount of land disturbed, even if disturbance is distributed over more than one season, and also applies to areas that are part of a larger commonplan of development orsale.) (Approximately 3.5 acres for pad and access road~ ........ [] d) Is your project an industrial facility which will have stormwater discharge which is directly related to manufacturing, processing, or raw materials Storage areas at an industrial plant?. .......... X If you answered yes to c) or d), your project may require an NPDES Stormwater permit. Contact EPA at 206-553-8399. Federal AViation Administration (FAA) 5.. a) Is your project located within five miles of any public airport? ....................................................... X b) Will you have a waste discharge that is likely to decay within 5,000 feet of. any public airport?FIX If yes, please contact the Airports Division of the FAA at (907) 271-5444. Federal Energy Regulatory Commission (FERC) 6. a) Does the project include any of the following: 1) a non-federal hydroelectric project on any navigable body of water ........................................ [] 2) a location on federal land (including transmission lines) .......................................................... [] 3) utilization of surplus water from any federal government dam ................................................ [] b) Does the project include construction and operation, or abandonment of natural gas pipeline facilities under sections (b) and (c) of the Federal Power Act (FPA)? ............................................. [] No X [] X X X X X X X X X X X Revised 1/99 Page 7 c) Yes Does the project include construction for physical interconnection of electric transmission facilities under section 202 (b) of the FPA? .................................................................................... [] If you answered yes to any questions under number 6, have you applied for a permit from FERC? ....................................................................................................................................... [] Date of submittal: (Note: For information, contact FERC, Office of Hydropower Licensing (202) 219-2668; Office of Pipeline Regulation (202) 208-0700; Office of Electric Power Regulation (202) 208-1200.) U.S. Forest Service (USFS) · 7. a) Does the proposed project involve construction on USFS land? ..................................................... [] b) Does the proposed project involve the crossing of USFS land with a water line? .......................... [] If the answer to either question is yes, have you applied for a USFS permit or approval? ...... [] Date of submittal: 8. Have you applied for any other federal permits or authorizations? ....................................................... [] AGENCY APPROVAL TYPE DATE SUBMITTED No X X X [] X Please be advised that the CPQ identifies permits subject to a consistency review. You may need additional permits from other agencies or the affected city and/or borough government to proceed with your activity. Certification Statement The information contained herein is true and complete to the best of my knowledge. I certify that the proposed activity complies with, and will be cOnducted in a manner consistent with, the Alaska Coastal Management Program. Signature ~ Applicant or Agent Date Faye W. Sullivan, Advising Environmental Scientist Note: Federal agencies CondUcting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement. ~DGC has developed a guide to assist federal agencies with this requirement. Contact DGC to obtain a copy. This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. To complete your packet, please attach your State permit applications and copies of your federal permit applications t° this questionnaire. Revised 1/99 Page 8 Albright No.1 and Pearl No. 1 Gas Exploration Program Union Oil Company of California (dba Unocal) March, 2001 I. Introduction Union Oil Company of California, d.b.a. Unocal, plans to test conventional gas targets on the southern Kenai Penninsula. The major activities will include the drilling and testing of one exploration well in the first year with a possible second well drilled and tested in the following year from the same location. Operations are expected to begin approximately June 1,2001 and last about 120 days. Well testing may continue for up to 18 months. Drilling and support facilities will be located on a gravel pad that will be built on one of the surface locations described below. This description provides an overview of activities associated with site development and general activities that will occur at the sites. It does not provide all details associated with the site activities. The respective permit applications for the various activities may be referred to for additional detail. In the event of a commercial discovery, a plan or plans for the development of a commercial field will be submitted to the appropriate governmental representatives. II. Project Location and Site Investigations The locations are approximately 3.5 Miles north of Ninilchik, Alaska on private surface and subsurface estate. Unocal has leases with these private owners. A location map is attached. Within the project area, the specific wells are located as follows: Albright No. 1 Private Lease Surface Owner: M.D. Blackard Subsurface Owner: Ronald Albright Land: 2,277' FWL; 550' FNL of Section 24, TlS, R14W Pearl No.1 Private Lease: SUrface and Subsurface Owner: Margaret J. Pearl Land: 1921' FWL, 1669FNL of Section 24, TlS, R14W Elevations in the area are mostly less than 300 feet above sea level. A wetland evaluation and delineation of the project area completed by Harding ESE identified some wetlands in the project area. Some fill into these areas is proposed as part of' access road and pad construction. An application to the US Army Corps of Engineers for a 404 authorization for the proposed fill has been filed. Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description · Page 1 of 8 03/28/01 , An archaeolOgical compliance report was prepared by Stephen R. Braund & Associates and submitted to the State Historic Preservation Office. III. Location Access Site access will be from the Sterling. Highway at Mile Marker 131.8. Short access roads will be constucted from the highway, across private property to the pad location(s). The Albright No 1 location will require approximatley 1,300' of new access road while Pearl No. 1 will require approximately 1,250'. See attached drawings. IV. Pad and Road Construction Although a portion of the project area has been logged, some tree clearing will be necessary to allow for access road and pad installation. All pads will be constructed to conform to the following general specifications: A! Pad Design The drill site pad sizes will be approximately 300'x 400'. Berming around the pad will prevent extraneous fluids, e.g., surface water, from entering or escaping the drill site area. Flare pits will then be excavated on the well pads. ~ B. Well Site Layout The proposed layout of the drill sites is shown in attached drawings. C. Surfacing Material Fill material or gravel, to be obtained from existing commercial gravel pit operations, will be used to construct the access road and pad. No concrete or asphalt surfacing will be needed at the sites. When appropriate based on the material, existing gravel and native soils on site made available during site preparation will be utilized for road and pad construction and improvements. D. Temporary Waste Storage Drill Cuttings and Mud will be temporarily stored in an earthen pit at each location. Additional storage volume will be made up of surface tanks set inside of a lined containment area. Li,ned earthen pits and/or storage tanks placed in lined containment areas will be used and constructed Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description Page 2 of 8 03/28/01 according to an approved Temporary Waste Storage Plan. A typical well site layout is shown in Figure 3. V. Location and Type of Water Supply Fresh water for drilling operations will be provided by a source water well to be drilled on the M.D. Blackard property (Albright No. 1 location) or purchased from commercial suppliers in the Ninilchick area and trucked to the locations. Application for a Temporary Water Use Permit for the well has been filed. The anticipated average water usage during the drilling operations is 300 bbls per day with a maximum of 1,000 bbls per day for the rig. Total anticipated use is 25,000 bbls. Drinking water will be supplied by a local contractor. VI. General Operations 'A. Rig Work Mobilization of the rig to the drill site could occur as early as June 2001. Drilling operations will require up to 50 days. Upon final demobilization of the rig all support equipment will be removed from the locations. B. Fuel Supply Diesel fuel will be provided by local vendors and transported to the drill site via trucks. Fuel will be stored on the pad in tanks with secondary containment. Less than 10,000 gallons of rig fuel will be stored on site. C. General Waste Disposal Two types of wastes, solids and liquids, will require disposal from this operation. , Solid .Waste Solid..waste will consist of Sewage, trash and drill cuttings. Due to the proximity of the sites to the road system and local communities, a camp will not be used at the project sites. Not operating a camp will minimize sewage waste. Self contained trailers, and portable "Rent-A, Cans" will be used. A local contractor will haul the waste to an approved sewage disposal location. Trash will be hauled to either the KPB Landfill in Homer or in Soldotna. Drill cuttings will be addressed in VII. Disposal of Drilling Wastes. Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description Page 3 of 8 03/28/01 2. Liquid Waste Liquid waste disposal is also addressed in VII. Disposal of Drilling Wastes. All waste disposal procedures will conform to the requirements of the Alaska Department of Environmental Conservation (ADEC), the Alaska Oil and Gas Conservation Commission (AOGCC), and the Environmental Protection Agency (EPA). VII. Disposal of Drilling Wastes During normal exploratory well operations, drilling wastes consist of the following: 1 ) liquids such as drilling mud, cement, and wash down water and 2) drill solids or cuffings. These are non-hazardous and are, generated from the well operations. Following is a general description of the types of drilling wastes and Unocal's methods to dispose of those wastes. Liquid waste' , The drilling fluid (or mud)is used to circulate drill cuttings (solids) from the well bore and to provide a hydrostatic weight to prevent an influx of liquids from overpressured strata. The drilling mud proposed for this well is a fresh- water base with additives to maintain certain rheological and density properties. This fluid is continually stripped of its solids content (i.e. drill cuttings) and recycled during the drilling of the well. Once the well is 'completed, the mud (or liquid phase)is stripped of solids (drill cuttings)in preparation for disposal. Mud and mud additives and their concentrations are included on the EPA-approved mud list. Oil-based muds will not be used in the drilling of these Wells. , Occasionally, fresh water is used to wash down the solids control equipment as well as other rig mechanical equipment; this graywater will be collected and stored until disposed. Attempts will be made to minimize the volume of this wash-down water and at the same time allow for a safe and clean working environment. Additional amounts of water are used to wash the drill cuttings before analyzing them for geoscience purposes. , In drilling operations, cement is used to grout the steel casings used in the well bore and, therefore, seal the steel pipe to the formation rock which will prevent the sub-surface-migration of fluids. This cement is required, at times, to be brought to surface for adequate ground water protection. As such, some Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description . Page 4 of 8 03/28/01 excess will be captured and stored until disposed. The cement will be retarded to prevent setting. The above liquid wastes will be disposed in an approved annulus or a Class II Disposal Well. Liquids generated will be temporarily stored on each pad location until they are disposed in either an approved annulus or transported as necesssary via truck to the disposal well and injected. Waste liquids incidental to the drilling operation will also be injected. A Temporary Waste Storage Plan for handling of liquid waste has been submitted to ADEC for approval. Solid Waste (Drill Cuttings) Drill cuttings come from the wellbore being drilled. These solids,'consisting mainly of clay and silt, are circulated from the bottom of the well to the surface where mechanical equipment separates and conveys the solids to a reserve tank. The solids control equipment is typically comprised of shale shakers, a desander, desilter(s), mud cleaner(s) and a conveyor belt. This equipment separates the liquid phase from the drill cuttings to prepare for separate disposal of solid (drill cuttings) and liquid wastes. Solids generated will be temporarily stored in lined containment on location until they can be transported as necesssary via truck to an approved disposal site. A Temporary Waste Storage Plan for handling of solid waste has been submitted to ADEC for approval. IX. Spill Prevention Control and Counter Measure (SPCC) Plan A. A detailed SPCC Plan will be furnished by the drilling contractor and maintained on location. An Oil Discharge Prevention and Contingency Plan is not required for this project because these are gas wells and fuel storage location will be less than 10,000 gallons. However, Unocal will make every effort to prevent any spills from occurring. In the event a spill should occur, Unocal personnel are trained in spill response and spill cleanup equipment will be maintained onsite. Unocal will make every reasonable effort to prevent, contain, and clean up oil spills and shall cooperate with others toward, such end. However, from time to time, in the course of normal operations, small spills may occur. Unocal strives to prevent these spills from occurring 'and counsels all employees and contract' employees on the importance of Protecting and conserving our natural resources through good housekeeping practices, Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description Page 5 of 8 03/28/01 adequate equipment maintenance, and adherence to proper operating procedures. B. Safety and medical emergencies will be handled through available resources at Central Peninsula Hospital and/or Anchorage, Alaska. C. Well control problems will be handled in a manner commonly accepted as safe oilfield practice utilizing a diverter, blow out preventer and other resources as necessary. X. Ancillary Facilities All equipment necessary for drilling and formation evaluation will stay on the drill site through the completion of each well. No special aircraft landing or service facilities will be necessary though an emergency landing site for helicopter Medivac will be identified. Because rig and support personnel will either return home or stay in local hotels, no rig crew camp or.camp kitchen facilities will be utilized on site. Trailers will be provided for key, critical personnel such as the drilling supervisors who , monitor operations 24 hours per day. Xl. Well Testing These wells are exploratory in nature and testing will be accOmplished using approved industry techniques and procedures in accordance with sound engineering practices as approved by the AOGCC. Xll. Disposal of Produced Gases and Liquids During well testing, the natural gas will be processed through a standard oilfield test separator. An approved carrier will truck any liquids produced from the locations. The liquid-free gas from the test separator will be flared or vented. XlII. Communication and Supervision A. A satellite link and cellular phones will be used for communication. B. A Unocal representative will be on site-at all times during drilling and well testing operations. Albright No. 1 and Pearl No. 1 Gas Explorati°n Wells Project Description Page 6 of 8 03/28/01 C. The following people are designated as contacts. Name Title Company Dan Williamson Drilling Manager Unocal Don Byrne Drilling Superintendent Unocal Tim Brandenburg Drilling Engineer Unocal Unocal 24-hour Switchboard Phone- # 263-7677 263-7835 263-7657 276-7600 XlV. Location Rehabilitation Plan In the event that a well or wells prove non-commercial, clean up of the location will begin immediatelY. Daily housekeeping procedures, however, are continuous throughout the operation. All remaining drilling wastes will be properly disposed and the wells plugged.for abandonment in accordance with the AOGCC regulations. XV. Development Drilling and Production Plan of Operation If the well(s) drilled are successful and a Commercial field is defined, a Development Drilling and Production Plan of Operations will be submitted for approval. Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description Page'7 of 8 03/28/01 LIST OF FIGURES Figure 1 Site Location and Vicinity Map Figure 2 Wetlands Map Figure 3 Albright Drilling Pad Figure 4 Typical Drilling Pad Cross View and Access Road Figure 5 Access Road Sterling Highway to Albright Drilling Pads Albright No. 1 and Pearl No. 1 Gas Exploration Wells Project Description' Page 8 of ,8 03/28/01 ESE A M~CTEc CO~,4Ny APPROXIMATE SCALE tN MILES 8oulh Nin~ik Project Ninilchik Alaska DP~WN PROJECT NUMBER APPROVED DATE Jp 52468 03/2001 Harding ESE PROJECT NUMBER APPROVED DATE 52468 03/200I TEMP. WASTE STORAGE PIT WATER WELL DRAINAGE SUMP W/ 20 MIL HDPE LINER ALBRIGHT //1 ASP ZONE 4 NAD27 GRID N: 2225523.985 GRID E: 206185.577 LATITUDE: 60'04'55.717" LONGITUDE: 151'36'32.830" NE 1/4 NW 1/4 MD BLACKARD FLARE PIT SCALE 1 inch = lOOft. 0 100 150 200 APPLICANT: UNOCAL 909 W. 9th Avenue Anchorage, AK 99519-7685 McLANE Engineers, Surveyors and Planners P.O. Box 468 Soldotna, AK 99669 ALBRIGHT NO. 1 DRILLING PAD LOCATION' 2277' FWL SECTION 24 550' FNL TlS R14W SM AK Dwg:Ot4013sn I Date: 3/23/01 I PAD DATA' FILL: 24,103 CY CLEARED AREA: 3.5 FIGURE' 3 ACRES SCALE DRILLING PAD CROSS SECTION VIEW l inch = lOO ft. 0 100 NOT TO VERTICAL SCALE 150 DOUBLE HDPE LINER I_ 3OO' I-"" .2' PERIMETER BERM ORIGINAL I ,~ ____ n ,./ ~,~,, I 2 ,~;~ CLEARING LIMITS 5' BEYOND TOE OF SLOPE 200 ROAD CROSS SECTION VIEW "ACCESS ROAD' LIMITS OF CLEARING & GRUBBING 50' I I I_ GRaDInG ~'~ 24" MINIMUM SELECTED, . TYPE A (NSF MATERIAL) '' i in~A'~E ft. 10 0 10 .., APPLICANT: UNOCAL 909 W. 9th Avenue Anchoro'ge, AK 99519-7685 MCLANE Engineers, Surveyors and Planners P.O. Box 468 Soldotno, AK 99669 TYPICAL DRILLING PAD CROSS VIEW AND ACCESS ROAD LOCATION' ALBRIGHT NO. 1 NINILCHIK, AK . Dwg:O14OO3dc I Date: 3/23/01 I', FIGURE 4 SCALE 1 inch = 300ft. 0 .300 1/4 NW 1/4 ~CRoss 450 600 ALBRIGHT NO. 1 FILL: 7,513 CY ROAD LENGTH' 2,415 FT. SEC 24 TlS R14W SM AK ALBRIGHT N,O. 2 N 1/2 SE 1/4 NW 1/4 APPLICANT: UNOCAL go9 w.'gth Avenue Anchoroge, AK 99519-7685 McLANE Engineers, Surveyors and Planners P.O. Box 468 Soldotna, AK 99669 ACCESS ROAD TO ALBRIGHT STERLING HIGHWAY DRILLING PADS Sheet. 4 of 5 LOCATION' ALBRIGHT NO. 1 & 2 NINILCHIK, AK M.P. Dwg: 014003dc Dat. e:' 3/23,/0"1 I FIGURE' 5 1,32.3 Unocal Corporation Agricultural Products 909 West 9th Avenue, P. O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 263-7685 Facsimile (907) 263-7901 UNOCAL Faye W. Sullivan Advising Environmental Scientist March 27, 2001 Mr. Gary Prokosch State of Alaska Department of Natural Resources Division of Mining, Land and Water 550 W. 7th Ave, Suite 900A Anchorage, Alaska 99501-3577 Dear Gary: Albright No. 1 and Pearl No. 1 Gas Exploration Program Temporary Water Use Permit Application Enclosed please find the completed Coastal Project Questionnaire, original Temporary Water Use Application, and Filing Fee, for Unocal's Albright No. 1 and Pearl No. 1 gas exploration well drilling program to begin this spring and summer. Also included for your reference are a Project Description Document and copies of applications for a Temporary Waste Storage Plan Approval and Corps of Engineers 404 Permit. Please note that this same packet, except for the DNR filing fee, has been filed with Kaye Laughlin, Division of Governmental Coordination Liaison to the State Pipeline Coordinator's Office, who will coordinate the state consistency review of this project. Please note the following when reviewing the calculations in. the enclosed application. During drilling and testing operations, water may be used on a 24 hour/day, 7 day/week basis. However, drilling and testing will not be continuous throughout the project period of June, 2001 through December, 2002. Required water volume will, therefore, be less than if withdrawn at the shown rates, continuously for 18 months. We expect that due to the proposed depth of the gas well drilling operations, the totai' amount of water necessary for drilling and testing of both wells to be within the 25,000 bbl quantity shown on the application. Please contact me at 263-7685 if you have questions or need additional information on the enclosed materials. Thank you for. your help. Sincerely, Fa'ye~. Sullivan Enclosures cc: Kaye Laughlin, DGC sPco DIVISION OF MINING, LAND & WATER WATER RESOURCES SECTION Alaska Department et NATURAL RESOURCES 550West7th Ave., Suite 900A Anchorage, AK 99501-3577 907-269-8503 Fax:269-8947 Office Use Only TWUP/I A S # IOffice Use Only CID # 400Willoughby, 4th Floor Juneau, AK 99801 907-465-3400 Fax:586-2954 Office Use Only Receipt Type WR Office Use Only Date/Time Stamp APPLICATION FOR TEMPORARY WATER USE PERMIT Instructions · Complete one application for each project - Incomplete applications will not be accepted. · Attach map indicating water withdrawal point(s), location(s) of water use, and point(s) of return flow - Map must identify meridian, township, range, and section · Attach sketch, photos, and/or plans of water system, and driller's well log, if applicable · Attach completed Coastal Project Questionnaire, if applicable (see page 3) · Submit filing fee - Non-refundable (see page 3) Allbright No. 1 and Pearl No. 1 Gas Exploration Wells Project Name Union Oil Co. of California dba Unocal Faye W. Sullivan Business Name Contact Person P.O. Box 196247 Anchorage, AK 99519 Mailing Address City State Zip Code (907)-263-7685 Phone Number (907)-263-7901 Fax Number sullifw @ unocal.eom E-mail Address I i Le~lal Descriptions ...... Location of Wa!er Use - It is applicant's responsibility to, obtain and maintain legal occupancy Identifiable LandmarkS (e.g. milepost, subdivision) Meridian Township Range Section Quarter SectiOns Ninilchik .', Seward 1S 14W 34 ¼ ¼ Mile 131.8 Sterling Highway Seward IS 14W 24 ¼ ¼ '" LoCation of Water Source - It is applicant's responsibility to Obtain and maintain legal access Ge~.raphic Name of Water Body or Well Depth Meridian Township Range Section Quarter Sections Drilled Water Well, Depth approximately 200' Seward 1S 14W 24 NW ¼ ¼ ' Location of Water Return Flow or Discharge, if applicable GeOgraphic Name of Water Body or Well Depth Meridian Township Range Section Quarter Sections N/A ¼ ¼ ..... Attach extra page if needed January 2000 Page 1 of 3 Water Quantity' and Use , Purpose of Water Use Quantity of Water Season Calculations Permit not to exceed 5 Show how quantity )/ears (ma)/be renewed) was det,e_rmined' Maximum Total Daily Date Work *Date All Withdrawal Amount Will Start Work Will be Hours/day 24 Rate Completed ? Mud System, Rig Operations 1,000 bbl= avg 300bpd= Days/week -06/01/01 12/31/02 42,000 gpd 12,600 gpd *You may want to use the end of the construction Total Amount 25,000 bbls season for your ending date Method of Takin(I Water Pump Pump intake 4 inches Hours working 24 Pump output 30.4 GPM Length of pipe Attached Gravity Pipe diameter inches Length of pipe hours/day feet (from pump to point of use) feet' (take point to use point) Head feet Ditch L H W ...... feet Diversion GPM or CFS Reservoir L ...... H ...... W ' feet Water storage AF Dam L ..... H ...... W ..... feet Water storage AF Project Description i i What alternative water sources are available to your project should a portion of your requested diversion be excluded because of water shortage or public interest concerns? Absent TWUP approval, haul water purchased from commercial sources. Are there any surface water bodies or water wells at or near your site(s) that could be affected by the proposed activity? If yes, list any ground water monitoring programs going on at or near the sites, any water shortages Or water quality problems in 'the area, and any information about the water table, if known. Yes, 1 water right, 3 additional well logs. See Attachment for description. Briefly describe the type and size of equipment used to withdraw and transport water, including the amount of water the equipment uses or holds. 4" electric submersible pump in water well bore. Briefly describe what changes at the project site and surrounding area will occuror are likely to occur because of construction or operation of your project (e.g. public access, streambed alteration, trenching, grading, excavation). Gravel placement for pad and access road construction, short access road from Sterline HighWay to pad location. Briefly describe land use around the water take, use, and return flow points (e.g. national park, recreational site, residential) Private surface ownership; w/in Sec. 24, several private weekend recreational structures, residences, out buildings. Will project be worked in phases? State reason for completion date. One well will be drilled first. Pending outcome of testing, possible second well in 2002. Water required throughor January 2000 Page 2 of 3 Briefly summarize your entire project. See Attached Project Description. Attach extra page if needed References i Coastal Zone If this appropriation is within 'the Coastal Zone, and you are using more than 1,000 GPD from a surface source or 5,000 GPD from a subsurface source, you need to submit a completed Coastal Project Questionnaire. For more information on the Coastal Zone, contact the Division of Governmental Coordination; Anchorage 269- 7470, Juneau 465-3562. Definitions GPD = Gallons per day CFS = Cubic feet per second GPM -- Gallons per minute AFY = Acre-feet per year (325,851 gallons/year) AFD = Acre-feet per day (325,851 gallons/day) MGD = Million gallons per day' iiii ii i Fee Schedule- Make checks payable to "Department of Revenue" $ 50.00 For use of 5,000 GPD or less. $100.00 For use of more than 5,000 GPD but less than 30,000 GPD. $ 200.00 For use of 30,000 GPD or more but less than 100,000 GPD. $ 300.00 For use of 100,000 GPD or more but less than 500,000 GPD. $ 500.00 For use of 500,000 GPD or more but less than 1,000,000 GPD. $1,000.00 For use of 1,000,000 GPD or more except...(see next line) $1,500.00 For use of 1,000,000 GPD or more, outside of the hydrologic unit from which it was removed (based on current USGS Hydrologic Unit Map of Alaska). $ 500.00 For use of any quantity of glacier ice. Conversion Table 5,000 GPD= 30,000 GPD= 100,000 GPD= 500,000 GPD.= 1,000,000 GPD= 0.01 CFS 0.05 CFS 0.2 CFS 0.8 CFS 1.5 CFS 3.47 GPM 20.83 GPM 69.4 GPM 347.2 GPM 694.4 GPM 5.60 AFY 33.60 AFY 112.0 AFY 560.1 AFY 1120.1 AFY 0.2 AFD 0.09 AFD 0.3 AFD 1.5 AFD 3.1 AFD 0.01 MGD~ 0.03 MGD 0.1 MGD 0.5 MGD 1,0 MGD The information presented in this application is true and correct to the best of my knowledge. I understand'that no water right or prioritY is established per 11 AAC 93.210-220, that water use remains subject to appropriation by others, and that a temporary water use permit may be revoked if necessary to protect the water rights of other persons or the public interest. Faye W. Sullivan Date Advising Environmental Scientist Name ('please print) Title January 2000 Page 3 of 3 Attachment: Application for Temporary Water Use Permit Page 2: Project Description. "Are there any surface water bodies or water wells at or near your site(s) that could be affected by the proposed activity?" If yes, list any ground water monitoring programs going on at or near the sites, any water shortages or water quality problems in the area, and any information about the water table, if known. Ans: Based on information from the DNR water and hydrologic survey sections, within TlS, R14W, section 24 there are one existing water right and three logged wells. None of the three logged wells corresponds to the well for which the water right and certificate have been issued. Water Right: Owner: Gary Jackinsky, Depth: 65', Tract B Jackinsky Sub.,Filed 1983 LAS: 399 Well Logs: Note: each is in the N/W 1/4 of Section 24 021475 Owner: Gary Jackinsky, D: 71', Lot 1 Tract B, Well Log Date: 4/9/77, LAS: None 018491 Owner: Shaun/Cin Jackinsky, D: 35', Lot 4 Tract C, Well Log Date: 4/5/88, LAS: None 018492 Owner: Shawn Jackinsky; D: 49', Lot 3 Tract C, Well Log Date: 9/9/87, LAS: None Ground water monitoring programs: None Known. Water Shortages or Water Quality Problems: None Known. Water Table Information: Summary of Information from the DNR Hydrologic Survey Section regarding the above three well logs: "Yields for the three (logged) wells range from 12 gpm to 30 gpm, indicating a fairly good supply. It seems that two aquifers are being used, one at about 30 to 50 ft down, and then a deeper one at about 70 ft down, separated by a blue clay. The shallow aquifer has an indication of iron in the water. NINILCHI~ Ocea~ HO? TO . · .'.' ' :..;'ij;}!;~}~';.;:'..~ SITE LOCATION ' ';'-'-':'-=.'¢~'.'-~q:::;t..~,: ' ' '..': . · .. · .... ,~ · ..,., . . . , ....... : · :..,; ,.-' _~' . · .'" " ~ ., :," ..:' ~"'i/."' .' t ".";"-".:-:<' · " : · ' .' ;:,' · ".: /'¢,":" ,-" '..lt~.'"'.' .. ';' ' . . ~/'...'.r... ';:"'.: . ~ . .' · " ,, ' : .... ;'."'"." ' .'~,~"~.l.~ . ' ,, t4, , .,3..!, . .... · - . · · ' ,' ,. ,.,, /. ',[: ,', ""~'-;-.-.~ : ,. ,.'..,..'..' .t r ":.... .... . ....;. , '....,:;. ., .::...:.:: ...,'/c:: _.~i.,._/".:....,. ~ ..' 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'" ....":.'...: ,:.'.~...,:,,~ ... ~ ::" "...'" -.':. . i~-'.' ", -. '"- ·: ' . ,..,- :. .' ,,.,' ~' ~,. ',;-' ~.,~.~'-"4,-'- . ,. . '.:: -..' · .'~.- . - ' · . ,.,~ .... ;-..:. ~:,'" ..~" '.:.'-" .. i ":-' ' '. '.'~ · :' '; ; .....,/ ~.~]. · · -! , . .. · ..- ; . ,., ,-~ . " :::'" ' · ': ' : I "-' ' .18 -.* · ! ... 1/ .. '': .' :; , '~'~o' '.._ ',' ~ ':.: .'.-' .. '... t. , ''- . ~:::,';' .." ~_~/.~ 'L . · .... .',.' .- ~,:.-". .... . . . .'" '. . ..'....' '. .,' .";,' ': ' '.. I ." . . ." · .... ' .... " ,.~-.,;, ~.. · .'.'/'.4~ ,.- '/ .... .'. I ..; , ' . , · : '.~,.~ ' :/':':"-'."." -.,~'--'I-ALBRIG~:~;""'I":&-2 . .-. ," ,./":'" Q ,~.;:: ;:1~ .:'.~',.': .... '.,"~J J, .' i-. ' . . .'.;,: ..... . ...,.'_' .r ; . . · ..,.:,.' '.. ,.t~'~"'--';.//J;~:.-'-3~.y .P,.all. ch ", - _..,, ..... ,' · ............ ' -' '" · ' ., ' .., . .Nln lclak. ,o1.' . · .",,t. '. · ..' ' . . .. .' I - . t · .' '' ~.· . · , _ I¢ -~ ¢/.- · · , ;'!. ,,.',~ .... :. '~' . .' I ' '.. "-~ '. '. ·: ': ' .' 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". · .."...: ..... f I ~.~'.:~ ,'~ ~'."'~ ~ · .'..," "? . . , ' , .... . .. ~ . . - . =,. . .. ~ ~-' ;:.:::.. ,-' .r 26 """ ;:5 ..;:", r% .' ·'30 x,.~.. ?'~ ]c~ .., ... ;....' ,2.~" "' ' "'" .'.'.1 ':/" ' ', ' ." ' " I( - ': '1 ' ''. ';. "' ..~ ,' .; . · , ." , '.. ;'"' '"~ ' .' ! .' ,..'"' ' . :- . ....' I'.,,.,.,'~ '.':L':/' '", ~/!.' .¢"' · :~" ' ..,' :," "., ' : .'' I'; ,: ' " · ', .:~' ~ "- i ',' .,'r. '. ..~.;;, :....ff, . .~,-' ,,"., ~ '., .' . · ,/.;~7 :! · '. . ' .... · :-',,,"'.~ .' ~ · ' ',. ".,t..'. '~,.- · .',...' .-. .~..' ... ..... : ...,::,: . ~ ., . :. f,..'./~.,~..... ; ,,'>:. * .:..,..'-..,, · ".' ..' .... : ' '... ' ..... '.' t " '-:'%.-/ "! ' '.'.'..,-'!';. ',J'*'~' "":'.' ,. Zi "';.{.;': :'"': T'- .-'"~,-":".'.::', ........ .' · ! ....... .", ..-,.:: ...... "· . .- .': ",-' ~/~ ' ' ' ,,'::' ,',..' ':'.. i .". '..... .:..:'...] .... ::..{"" .... .-'.' ~..-..~ .... ,~' .... .',.,.'.'. ,-' ., :7 '., Nini!chik · · ": ' ,".~o, '1 ...'"x,x. : ~;/~,-.(.-'.::':'. .... / , .' .. ' ,( ,~ .% ., . ,, .t ., " ...... - ,.. ..';'"", · · · ' I ,' '.','. .. /, ..,.4 .: s/.. ~ .. :. ../' .; · , /.. :" '*, ..'. ' ." ' t .',~ ', APPROXIMATE SCALE IN MILES .,. · ',. i.ao ... i .,'; REFERENCE: USGS TOPOGRAPHIC MAP, 1:63,360 " "" :' ":':". ".--',,.::i::.,l. ". ~.~ ! '-..:,.~,._; ,.',, .'. .'! "' ." ., .e. . .. , .~ ,. '.~.., . . ,. '., ..;I. ' ,: :""~'~i" ':i,:"~ ; ' """ ..... ". , -,' .'?' .,,- ! ". · .',,.-', D~-,-~ · .. :: '. ', ' I/, ~-~,. · ' '""~': ...... ,.."' ...'f':4..",':' o 1/2 ~ . ~_. == ..~=,.'.7 .......:c;:£.. ; I I I > ' ,.,; .... ] . ,'1"" ~l Itillp ,~ I ll }~ ll'I I ll~ i i , I , ~~ ' Site LocatJon and Vicinit~ Map F~eUP, E lHardln ~fi~l A MACTEC Col~F,,41v¥ Soll Ninilchik Project Ninilchik, Alaska /~ ~ ~-'~JECT NUMBER ~1~ DATE ~ JP 52468 03/2001 Harding'ESE A MACTEC COMPANY DRAWN JP Wetlands Map South Ninilchik Project Ninilchik, Alaska FIGURE PROJECT NUMBER APPROVED DATE 52468 0312001 Unocal Corporation(~' Agricultural Products 909 West 9th Avenue, P. O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 263-7685 Facsimile (907) 263-7901 UNOCAL Faye W. Sullivan Advising Environmental Scientist March 27, 2001 Mr. Judd Peterson State of Alaska Department of Environmental Conservation Solid Waste Program 555 Cordova Street Anchorage, Alaska 99501 Dear Judd: Albright No. 1 and Pearl No. 1 Gas Exploration Program Temporary Waste Storage Plan Approval Enclosed please find the completed Coastal Project Questionnaire and Temporary Waste Storage Plan for Unocal's Albright No. 1 and Pearl No. 1 gas exploration well drilling program to begin this spring and summer. Also included for your reference are a Project Description Document and copies of applications for a Temporary Water Use Permit and Corps of Engineers 404 Permit. Please note that this same packet has been filed with Kaye Laughlin, Division of Governmental Coordination Liaison to the State Pipeline Coordinator's Office, who will coordinate the state consistency review of this project. Please contact me at 263-7685 if you have questions or need additional information on the enclosed materials. Thank you for your help. Sincerely, Faye W. Sullivan Enclosures Cc: Kaye Laughlin, DGC SPCO ALBRIGHT NO. 1 AND PEARL NO. 1 Gas Exploration Wells Temporary Waste Storage Plan Union Oil Company of California (dba Unocal) March, 2001 Introduction In the summer of 2001 Union Oil Company of California, dba Unocal, plans to drill a gas exploration well from one location designated as either Albright No. 1 or Peal No. 1. A second delineation well may be drilled from the same location subsequently. Associated mud, liquids and/or solids from each well will be stored temporarily at the respective location. A. Name, address, phone number,.and affiliation of each person responsible for conducting the drilling activity Name Title Dan .Williamson Don Byme Tim Brandenburg Drilling Manager Drilling Superintendent Drilling Engineer Company Unocal Unocal Unocal Phone- # 263-7677 263-7835 263-7657 Unocal 24-hour Switchboard 276-7600 B. Location and Type of storage Container The temporary pits and tankage will be located adjacent to the well locations, which are located approximately 3.5 Miles north of Ninilchik, Alaska: Albright No. 1 Private Lease Surface Owner: M.D. Blackard Subsurface Owner: Ronald Albright Land: 2,277' FWL; 550' FNL of Section 24, TlS, R14W Pearl No.1 Private Lease: Surface and Subsurface Owner: Margaret J. Pearl Land: 1921' FWL, 1669FNL of Section 24, TlS, R14W 'Drill Cuttings and Mud will be temporarily stored in an earthen pit on location. Additional storage volume will be made up of surface tanks set inside of a lined containment'area. The temporary storage pit will be situated in a nonpermanent frost region. The seasonal high groundwater table is anticipated to be within 20, feet of the disposal facility. Albright No. 1 and Pearl No. 1 Temporary Waste Storage Plan Page 1 of 5 03/28/01 C. Plans and Materials Temporary Storage Earthen Pits The pit will be approximately 90' wide x 170' long (surface dimensions) x 12 ' deep. The usable volume of the pit, allowing for 2' of free board, will be approximately 24,000 bbls. Approximately 10,000 bbls of liquids and 2,450 bbls of drill solids will be stored in the pits. The pit will be adequate to contain the average annual precipitation of 24" (Ninilchik area). The pit will be excavated and the native soils generated from excavation will be used for berming around the pit (See Figure 1). A 60 mil HDPE double liner will cover the pit bottom walls and berms. Each distinct liner will be capable of containing the waste independently. Temporary Storage Tanks Open top tanks will be used to provide additional mud storage capacity while drilling the wells. These tanks will be placed inside of lined containment areas as well. (See Figure 2) The tanks will rest on 3" x 12" dunnage or wooden planks to distribute weight and protect the liner. The approximate storage capacity will be 2,000 bbls. (multiple 400-600 bbl tanks) A minimum of 2' of freeboard will be maintained at all times. The containment area will have sufficient capacity to hold 50% of the tank volume. Albright No. 1 and Pearl No. 1 Temporary Waste Storage Plan Page 2 of 5 03/28/01 Figure No. 1' Plan and Section Views of Temporary Storage Lined Earthen Pits. Note: Berms are 2' at top Liquids and Solids Stora.ae Area 90' Berm Ground Surface 170' 1 10' Usable 2' Berm A~ Albright No. 1 and Pearl No. 1 Temporary Waste Storage Plan Page 3 of 5 03/28/01 Figure No. 2: Plan and Section Views of Temporary Storage Tankage and Containment. Note: Berms are 2' at top so' I A Tankage Berm --I' A! Pad Surface Tankage Dunnage 2' Berm A~ Albright No. 1 and Pearl No. 1 Temporary Waste Storage Plan Page 4 of 5 03/28/01 D, Methods to prevent the discharge of drilling waste leachate Secondary, lined containment pits will prevent the loss of fluids. Daily site inspections will be conducted. E. Name and location of each facility where the waste will be transferred The fluid will be disposed of in the annulus of the well drilled or will be hauled to and injected into an approved Class II Injection Well on the Kenai Peninsula or on Unocal's Bruce Platform. F. Anticipated dates for storage Storage of waste will commence at the beginning of the drilling process anticipated to start in June 2001. The waste will be removed from the pit within 12 months of completion of the project. G. Certification of Removal The undersigned certifies that all drilling waste will be removed from these locations within 12 months after completion of drilling operations. Dan Williamson Drilling Manager Albright No. 1 and Pearl No. 1 Temporary Waste Storage Plan Page 5 of 5 03/28/01 Unocal Corporation (' ^gricultural Products 909 West 9th Avenue, P. O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 263-7685 Facsimile (907) 263-7901 UNOCAL ) Faye W. Sullivan Advising Environmental Scientist March 27, 2001 Mr. Houston L. Hannafious Project Manager Department of the Army U.S. Army Engineer District, Alaska P.O. Box 898 Anchorage, Alaska 99506-0898 Dear Mr. Hannafious: South Ninilchik Project Albright No. 1 and Pearl No. 1 Gas Exploration Program Temporary Waste Storage Plan Approval Enclosed please find the completed Coastal Project QuestiOnnaire, Application for Department of the Army Corps of Engineers 404 Permit, and Wetlands Delineation report for Unocal's Albright. No. 1 and Pearl No. 1 gas exploration well drilling program to begin this spring and summer. We plan to conduct field confirmation of the wetlands assessment at both locations as soon as possible in the Spring: Also included for your reference is a Project Description Document. Please note that this same packet has been filed with Kaye Laughlin, Division of Governmental Coordination Liaison to the State Pipeline Coordinator's Office, who will coordinate the state consistency review of this project. Please contact me at 263-7685 if you have questions or need additional information on the enclosed materials. Thank you for your help. :, Sincerely, . 'Faye W. Sullivan Enclosures Cc: Kaye Laughlin, DGC SPCO , /Harding ESE ¢,,,:~.~:,¢~ A MACTEC COIvlPANY Harding ESE, Inc. 601 East 57th Place Anchorage, AK 99518 Telephone: 907/563-8102 Fax: 907/561-4574 Home Page: www.rnactec.com March 16, 2001 52468 Ms. Faye Sullivan UNOCAL ALASKA RESOURCES 909 West 9th Avenue P.O. Box 196247 Anchorage, Alaska 99519-6247 Wetlands Delineation South Ninilchik Project Kenai Peninsula, Alaska Dear Ms. Sullivan: This letter report summarizes the wetlands survey Harding ESE (Harding) conducted for the Unocal Alaska Resources (Unocal) South Ninilchik Project. INTRODUCTION Unocal retained Harding to conduct an aerial photograph interpretation of the wetlands around two possible oil and gas well pads north of Ninilchik, Alaska, on the Kenai Peninsula (Figure 1). Albright No. 1 is the preferred pad location and Albright No. 2 is the alternate pad location. Only one pad will be built. Section 404 of the Clean Water Act, United States Code Title 33, Section 1344, authorizes the secretary of the Army, acting through the Chief of Engineers, to issue permits for the disc. barge of dredged or fill material into the waters of the United States, including wetlands (Environmental Laboratory, 1987). · ,, The placement of fill materials into wetlands may be necessary while constructing well pads, indicating the need to identify jurisdictional wetlands for permitting. Harding was not able to conduct a wetlands delineation at the site in the winter. If necessary, field verification could be done during the summer of 2001. WETLANDS SURVEY AREA The survey area lies approximately 3 miles north of Ninilchik and 1/2 mile east of Cook Inlet in the Kenai Lowlands (Figure 1). The area around both pad locations has recently been logged. March 19, 2001 52468 Ms. Sullivan UNOCAL ALASKA RESOURCES Page 2 The Kenai Lowlands consist of ground moraines and stagnant ice terrain with low ridges, hills, and muskegs. The project area contains a network of lakes, ponds, and streams; large wetland complexes and isolated wet meadows; and a variety of uplands dominated by spruce, birch, and alder (Reiger et al., 1979). The climate of the survey area is subarctic. Temperatures on the Kenai Peninsula rarely rise above 26 degrees Celsius (°C) [80 degrees Fahrenheit (°F)] in the summer or drop below-34°C (-30°F) in the winter. Average annual precipitation in Ninilchik is 12.7 centimeters (5 inches) (Leslie, 1989). PAD LOCATION Proposed Albright No. 1 or 2 would be located in the NW ¼, Section 24, Township 1 South, Range 14 West, Seward Meridian. Albright No. 1 is at latitude 60o4' 55.717" and longitude 151°36'32.830" and Albright No. 2 is at latitude 60°4'44.689'' and longitude 15 l°36'32.830". There is road access to both sites from the Sterling Highway on unnamed dirt roads. The constructed pad would be 300 feet by 400 feet in dimension. METHODS Existing information was used to delineate wetlands around Albright No. 1 and 2, including aerial photography (true color, 1996) and National Wetland Inventory (NWl) maps (Kenai A-5). Natural Resource Conservation Service soil survey data were not available for this location. Field verification was not possible because of the winter season. Wetland boundaries were overlain on electronic base maps of the study area by using AutoCAD®. WETLANDS DELINEATION RESULTS Albright No. 1 Albright No. 1 is in a large w~tland complex (Figure 2). The NWI describes the area north of the proposed pad location as a patterned bog, PSS1/EM5F. A patterned bog is composed of ridges and wet hollows. The ridges are commonly dominated by broad-leaved deciduous shrubs such as dwarf birch (Betula nana), labrador tea (Ledum palustre groenlendicum), bog rosemary (Andromeda polifolia) and sweet gale (Myrica gale). The hollows are typically dominated by mosses and sedges (Carex sp.). · The. southern end of the wetland, where most of the proposed Pad is located, is described as a saturated, open canopy black spruce bog, PSS4/1B. The black spruce (Picea mariana) are typically shrub height (less than 6 meters). Commonly found dwarf shrubs include sweet gale, labrador tea, cloudberry (Rubus chamaemorus), dwarf birch, and lowbush cranberry (7/accinium vitis-idaea). / . JHarding ESE.. A MACTEC COMPANY March 19, 2001 52468 Ms. Sullivan UNOCAL ALASKA RESOURCES Page 3 Albright No. 2 Based on NWI maps and aerial photography Albright No. 2 is not in wetlands (Figure 2). REFERENCES Environmental Laboratory. 1987. Corps of Engineers wetlands delineation manual. Technical Report Y-87-1, U.S. Army Engineer Waterways Experiment Station, Vicksburg, Mississippi. Leslie, L.D. 1989. Alaska climate summaries, second edition. ~4laska Climate Center Technical Note No. 5. Arctic Environmental Information and Data Center, University of Alaska, Anchorage, Alaska. Rieger, S., D.B. Schoephorster, and C.E. FurbUsh. 1979. Exploratory soil survey of Alaskal U.S. Department Of Agriculture, Soil Conservation Service. 213 pp. Please call if you have questions Yours very truly, HARDING ESE Donna Robertson Senior Environmental Scientist QC/TE/jm/W0977R :, Attachments: Figures 1 and 2 ' JHarding ESE. A MACT~C CoM/~,vvv .: N~ni!ehi~ dxct~c Ocean Bea u£ort BN~ROWa. Sea . ChukehJ Sea '~i,~'¢~ .~"~:~ .~'~ ..,%~.~..~}:~.:.~%;..%~c~~ ..... 5.~..,;_. ~ ,_-..T, ~..' '., ~ ...... ~'~' ...' , ________..~. Pae~'e Oee~ SITE LOCATION NOT TO SCALE a4 i .. I ' ~",,.' ::' . . '"' . ": "~"'"' ' Z "" I '.,,': .. f~ ~, i -,.. ,..t< ~. ./ ....~:. .... -~.ZL:.. ..,.. ,.,~,' '" "~ '" ': ~ ..... ":' I..,';"~' ..... :~;~. :. .:.-P ~ · ,4, .......... · ., · · --" ! .~. :~" =-...=?' ',., '~. .... · . , · ,,I/ '-'., ..... - · · I..' ~,. :,~ .. 'I'": .:" ~_5' !n" --" '~5' --:~ 'I": ' i ; ....,, .', . "..... . .'. I : ) " i , " .... .: ..... ,":z:,'~,'-,L_' ...... 1:-,.:------'-...." .I.' .. k,,...;., . .; ....-.' '. .?;.'-".. ': .... . .... ~. .'.,... · - :~...,..... ,: ,.-....,:., ...,...... ~. i-7..-..77,,..7.:..7.i~.;~i., .,. . '.-.-:'v--- .' ;. .' ';,.'..,:... -...j ....... .'..,::.'.- ...... ::.--.-~ i:'. ,.. i,: .'i'~ I ":: '"'" "-, ":' .'".,..~i.i~ii.~:.'i ~::! ,..;; .... ...:.... , ~ .~., ~.,. .,,,. : · ~ .,,.: ',.::?":;?'.~?:!~";i;i,.~!!i,;?:::?.:;:.?Fl.!.?.?...~." ."...; :'...'I".; · ~:'~.?" 7.. /',' .. · I REFERENCE: USGS TOPOGRAPHIC MAP, 1:63,360 :. ...9, .,.;... ,. .. '-3G"...' . "~1 '. · '.'"'.. ;'~,.,, ' .! . :.'I.. · "?:7 '~?,. · "{ :' Hardln o ESE ~~~~ DRAWN PROJECT NUMBER ~"-- ' JP ' 52468 NORTH 0 112 I 2 I I I I APPROXIMATE SCALE IN MILES Site Location and Vicinity Map South Ninilchik Project Ninilchik, Alaska FIGURE 1 DATE 03/2001 Hardin ESE A MACTEC COMPANY DRAWN Wetlands Map South Ninilchik Project Ninilchik, Alaska FIGURE 2 APPROVED PROJECT NUMBER DATE 52468 0312001 APPLICATION FOR DEPARTMENT OF THE ARMY PERMIT I OMB APPROVAL NO. 0710-0003 (33 CFR 325) I Expires June 30, 2000 The Public burden for this collection of information is sestimated to average 10 hours per response, although the majority of applications should require 5 hours or less. This includes the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Department of Defense, Washington Headquarters Service Directorate of Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302; and to the Office of Management and Budget, Paperwork Reduction Project (0710-0003), Washington, DC 20503. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. Please DO NOT RETURN your form to either of those addresses. Completed applications must be submitted to the District Engineer having jurisdiction over the location of the proposed activity. PRIVACY ACT STATEMENT Authorities: Rivers and Harbors Act, Section 10, 33 USC 403; Clean Water Act, Section 404, 33 USC 1344; Marine Protection, Research and Sanctuaries Act, 33 USC 1413, Section 103. Principal Purpose: Information provided on this form will be used in evaluating the application for a permit. Routine Uses: This information may be shared with the Department of Justice and other federal, state, and local government agencies. Submission of requested information is voluntary, however, if information is not provided the permit application cannot be evaluated nor can a permit be issued. One set of original drawings or good reproducible copies which show the location and character of the proposed activity must be attached to this application (see sample drawings and instructions) and be submitted to the District Engineer having jurisdiction over the location of the proposed activity. An application that is not completed in full will be returned. 1. APPLICATION NO. (ITEMS I THRU 4 TO BE FILLED BY THE CORPSI 2. FIELD OFFICE CODE 3. DATE RECEIVED 4. DATE APPLICATION COMPLETED 5. APPLICANT'S NAME Unocal Alaska Resources 6. APPLICANT'S ADDRESS 909 W. 9th Avenue, P.O. Box Anchorage, AK 99519-6247 7. APPLICANT'S PHONE NOS. W/AREA CODE a. Residence b. Business 907-263-7600 (ITEMS BELOW TO BE FI_~FD' BY APPLICANT} 196247 8. AUTHORIZED AGENT'S NAME AND TITLE (=. =g~n~i=norr~qu/r~d) Faye Sullivan, Advising Environmenta3 Se.i~.n~st 9. AGENT'S ADDRESS 909 W. 9th Avenue, P.O. Box 196247 Anchorage, AK 99519-6247 10. AGENT'S PHONE NOS. W/AREA CODE a. Residence b. Business 907-263-7685 11. STATEMENT OF AUTHORIZATION I hereby authorize, to act in my behalf as my agent in the processing of this application and to furnish, upon request, supplemental information in support of this permit application. APPLICANT'S SIGNATURE DATE NAME, LOCATION AND DESCRIPTION OF PROJECT OR ACTIVITY 12. PROJECT NAME OR TITLE (~e instructions) South Ninilchik Project (Albright No. 1 and Pearl No. 1) 13. NAMEOF WATERBODY, IFKNOWN Unnamed Wetland Cook Tnlet 15. LOCATION OFPROJECT Kenai Peninsula Borough Alaska COUNTY STATE 14. PROJECT STREET ADDRESS (if applicable) Not Applicable 16. OTHER LOCATION DESCRI~IONS, IF KNOWN, ~ee mstruc~i Albright No. 1 NW 1/4, Section 24, 6~ 4' 55,717" 17. DIRECTIONS TO THE SITE Head North on the Sterling Highway from Ninilchik Jackinsky Beach turn East on an unnamed dirt road. See Figures 1 and 2. Township 1 South, Range 14 West, Seward Meridian approximately 3 miles. Shortly after 'ENG FORM 4345, Jul 97 EDITION OF FEB 94 IS OBSOLETE. (Proponent: CECW-OR) 18. Nature of Activity (Descriptfon of project include all features) Unocal is proposing to construct one oil and gas well pad, Albright No. 1, and short access roads for exploration North of Ninilchik on the Kenai Peninsula, Alaska. The pad will be 300 X 400 feet, Figure 3. 19. ~oject ~rpose ~==c~ ~e re,on or purP°~e of ~e p~/ec& see i~truc~) See Supplemental Page. USE BLOCKS 20-22 IF DREDGED AND/OR FILL MATERIAL I$ TO BE DISCHARGED 20. Reason(s) for Discharge Fill material L Structural gravels will be placed in wetlands to construct an oil and gas pad (Figures 2 and 3). 21. Type(s) of Material Being Discharged and the Amount of Each Type in Cubic Yards Gravel fill will be used to construct the oil and gas well pad. require 24,103 cubic yards of fill. 22. Surface Area in Acres of Wetlands qr Other Waters Filled ~e A maximum of 3.5 acres Albright No. 1 will 23. Is Any Portion of the Work Already Complete? Yes No ~ IF YES, DESCRIBE THE COMPLETED WORK 24. Addresses of Adjoining Property Owners, Lessees, Etc., Whose Property Adjoins the Waterbody (If more than can be entered here, please attach a supplemental list). MD Blackard 10704 Flagship Circle Anchorage, AK 99515-2430 Ronald Bay Albright P.O. Box 39391 Ninilchik, AK 99636 25. List of Other Certifications or Approvals/Denials Received from other Federal, State or Local Agencies for Work Described in This Application. AGENCY TYPE APPROVAL~ IDENTIFICATION NUMBER DATE APPLIED . DATE APPROVED DATE DENIED See Supplemental Page ~Would include but is not restricted to zoning, building and flood plain permits 26. Application is hereby made for a permit or permits to authorize the work described in this application. I certify that the information in this application is complete and accurate. I further certify that I possess the authoriW to undertake the work described herein or am acting as the duly ~¥thorized agent S~NATURE OF APPLICANT DATE SIGNATURE OF AGENT DATE The application must be signed by the person who desires to undertake the proposed activity (applicant) or it may be signed by a duly authorized agent if the statement in block 11 has been filled out and signed. 18 U.S.C. SeCtion 1001 provides that: Whoever, in any manner within the jurisdiction Of any department or agency of the United States knowingly and willfully falsifies, conceals, or covers up any trick, scheme, or disguises a material fact or makes any false, fictitious or fraudulent statements or representations or makes or uses any false writing or document knowing same to contain any false, fictitious or fraudulent statements or entry, shall be fined not more than $10,000 or imprisoned not more than five years or both. Unocal South Ninilchik Project Unocal Co~oration 909 West 9u' Ave. Anchorage, Alaska 99519 Application for Department of the Army Permit Supplemental Page Block 19. Oil and natural gas exploration facilities are required to assess quantities of petroleum resources in the subsurface estate. Exploring for and developing petroleum resources is vital to the economy of Alaska and the well-being of its citizens. New development is needed to meet growing local energy demands. Development of commercial quantities of petroleum or natural gas brings direct economic benefits in the form of employment, production royalties, and severance taxes. There is no alternative to construction of production facilities for the development of these resources. Block 25 Agency Type Approval ID number ADGC Coastal Project NA Questionnaire ADNR Temporary Water Use NA Permit ADEC Amendment to existing Air 000061 Quality Control Operating Permit ADEC Temporary Waste Storage NA Plan Date Applied Concurrent with this application Concurrent with this application Concurrent with this application Concurrent with this application Date Date Approved Denied NA NA NA NA NA NA NA NA ~et~e Ocean Bea u£ort BARROW~ · :'. , :, ?,:.:...- ,,.,~., ~. ,.~.,- ~ .... ~.,, .~ .. ~.~:~ .... :..,. ,. ~ .~. , .',.: ~-~...,~':: ..... .. ~,.. ..... . .~. ~".- . SITE LOCATION NOT TO SCALE Ninilchil~ ,. .. ""'" k 'x,,.,. I f ,.. REFERENCE: USGS TOPOGRAPHIC MAP, 1:63,360 NORTH 112 I 2 I I I APPROXIMATE SCALE IN MILES FIGURE t .,,.~:~,~, Site Location and Vicinity MaP Harding ESE ~.~ A MACTEC COMPANY South Ninilchik Project Ninilchik, Naska ~ PROJECT NUMBER APPROVED DATE " JP 52468 03/2001 ,~:,~,~,,,~, Hard~ng ESE .~JI A MACTEC COMPANY Wetlands Map South Ninilchik Project Ninilchik, Alaska FIGURE 2 PROJECT NUMBER APPROVED DATE 52468 03/2001 TEMP. WASTE STORAGE PIT WATER WELl DRAINAGE SUMP W/ 20 MIL HDPE LINER ALBRIGHT #1 ASP ZONE 4 NAD27 GRID N: 2225523.985 GRID E: 206185.577 LATITUDE: 60'04'55.717" LONGITUDE: 151'36'32.850" NE 1/4 NW 1/4 MD BLACKARD FLARE PIT SCALE 1 inch = 100fL. 0 100 150 200 APPLICANT: UNOCAL 909 W. 9th Avenue Anchoroge, AK 99519-7685 McLANE Engineers, Surveyors ond Plonners P,O, Box 468 Soldotno, AK 99669 ALBRIGHT NO. 1 DRILLING P,AD LOCATION" 2277' FWL SECTION 24 550' FNL TlS R14W SM AK Dwg: 014013sn Date: 3/23/01 PAD DATA: FILL: 24,103 CY CLEARED AREA: 3.5 ACRES FIGURE' ,5 SCALE DRILLING. PAD CROSS SECTION VlEW l inch = lOOft. 0 100 NOT TO VERTICAL SCALE 150 DOUBLE HDPE LINER j~ 300' '~ 2' PERIMETER BERM , ORIGINAL ,~/ ~ 0 5% ~ ' 2 · m~ ~,.o~.o ~_....,..,, .,....'~...-,...-.,.-. :" .' ":;" '";": · ~ /,' ,' ~'~,,~ 5' MIN. TYPE A (NSF MATERIAL) ?/,~,">~" CLEARING LIMITS 5 BEYOND TOE OF SLOPE 200 ROAD CROSS SECTION VIEW "ACCESS ROAD LIMITS OF CLEARING & GRUBBING 50' ~ ~ 17' "--J-- 18' ROADWAY WIDTH _J__ 6' min. ...... ~~%~:.-_-_-_-_': - ';,- - - C-_--_-CC-X-] ~_-L--..-i'-_'"_'-_" ~ J 1 I-- ~/~"-+:+:::' . '1' WIDTH GEO'TEXTILE --.//OV£RLAP '/ -- ~ 12" SUBBASE GRADING B--/ / 24" MINIMUM SELECTED, SCALE TYPE A (NSF MATERIAL) 1 inch = ft. 10 0 10 2O APPLICANT: UNOCAL 909 W. 9th Avenue Anchoroge, AK 99519-7685 McLANE Engineers, Surveyors ond Plonners P.O. Box 468 Soldotna, AK 99669 TYPICAL DRILLING PAD CROSS VIEW AND ACCESS ROAD LOCATION' ALBRIGHT NO. 1 NINILCHIK, AK Dwg:O14OO:3d¢ I Date: 3/23/01 FIGURE: 4 SCALE 1 inch = 300ft. 0 300 450 600 FILL: 7,515 CY ROAD LENGTH' 2,415 FT. _ / NE 1/4 NW 1/4 ALBRIGHT NO. 1 SEC 24 TlS R14W SM AK / / ALBRIGHT NO. 2 N 1/2 SE 1/4 NW 1/4 APPLICANT: UNOC'AL 909 W. 9th Avenue Anchoroge, AK 99519- 7685 McLANE Engineers, Surveyors (3nd Planners P.O. Box 468 Soldotna, AK 99669 ACCESS ROAD STERLING HIGHWAY M.P. 132.3 TO ALBRIGHT DRILLING PADS Sheet 4 of 5 LOCATION' ALBRIOHT NO. 1 & 2 NINILCHIK, AK Dwg:Ot4OO3dc Date: 3/23/011 FIGURE' 5 I Unocal Corporation (' Agricultural Products 909 West 9th Avenue, P. O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 263-7685 Facsimile (907) 263-7901 UNOCAL Faye W, Sullivan Advising Environmental Scientist March 27, 2001 Ms. Judith E. Bittner State Historic Preservation Officer State of Alaska Department of Natural Resources Office of History and Archaeology 550 W. 7th Ave, Suite 1310 Anchorage, Alaska 99501-3565 Albright No. 1 and Pearl No. 1 Gas Exploration Program Dear Ms. Bittner: Enclosed please find the completed Coastal Project Questionnaire and ArChaeological Compliance RePort for Unocal's Albright No. 1 and Pearl No. 1 gas exploration well drilling program to begin this spring and summer. Also included for your reference are a Project Description Document and copies of applications for a Temporary Water Use Permit and Corps of Engineers 404 Permit. Please note that this same packet has been filed with Kaye Laughlin, Division of Governmental Coordination Liaison to the State Pipeline Coordinator's Office, who will coordinate the state consistency review of this project. Please Contact me at 263-7685 if you have questions or need additional information on the enclosed materials. Thank you for your help. Sincerely, Enclosures cc: Kaye Laughlin, DGC SPCO UNOCAL ARCHAEOLOGICAL COMPLIANCE Dionne No. 1, Albright No. 1 and Pearl No. 1 Prospect Areas Prepared for Union Oil Company of California dba Unocal P.O. Box 196247 Anchorage, Alaska 99519-6247 23 March 2001 Stephen R. Braund & Associates P.O. BOx 1480 Anchorage, Alaska 907-276-8222 907-276-6117 (fax) srba@alaSka, net TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................... i INTRODUCTION ....................................... 1 Section 106 Compliance Procedure ................................................................................................................ 1 Alaska Heritage Resource Survey (AHRS) ................................................................................................. 1 Literature Search ........................................................................................................................................ 1 Background ................................................................................................................................................... 4 Assessment of Existing Information ........................................................................................................... 6 Recommendations ................................................................................................................. i .................... 6 REFERENCES..: ............................................................................................................................ 9 Figure 1: Figure 2: Figure 3: Figure 4: List of Figures Vicinity Map - Ninilchik Area Wells .............................................................................. 2 Archaeological Sites in the Vicinity of the Central and South Ninilchik Prospect Areas .................. 3 Proposed Site for'the Central Ninilchik (Dionne No. 1) Prospect Area ....................................... 7 Proposed LoCations and Pads for South Ninilchik Prospect (Albright No. 1 & Pearl No. 1) .............. 8 Roger K. Harritt, StePhen R. Braund and Elizabeth D. Grover prepared this rePort. · Stephen R. Braund & Associates P.O. Box 1480 Anchorage, Alaska 907-276-8222 907-276-6117 (fax) srba~alaska, net UNO1-CR2.doc INTRODUCTION Initial portions of the Section 106 compliance process were carded out in conjunction with planning for drilling exploratory wells - Central Ninilchik Prospect Area (I)ionne #1) and South Ninilchik Prospect Area (Albright #1 and Pearl #1) - in the vicinity of Ninilchik on the Kenai Peninsula coast, Alaska (Figure 1). Initial tasks include a review of the preliminary data and literature, and an assessment of available information regarding the fundamental requirements for Section 106 compliance. Kecommendation, s for meeting the requirements were developed on the basis of the assessment and are presented at the end of this report. Section 106 Compliance Procedure Archaeological resources are protected under the Section 106 of the National Historic Preservation Act and Alaska Statute 41, 35. Archaeological resources are defined as any material remains of past human life or activities of archaeological interest. These include, but are not limited to, prehistoric and historic artifacts, structures or portions of structures, rock paintings and carvings, graves, and human skeletal remains. Compliance with state and federal laws is required in cases where the project location is under the purview of federal or state stewardship, or in cases where federal and state funds support or partially support a project, or in cases where federal, state, or local permits are required in order to carry out a project. In the case of the Albright 1, Pearl 1 and Central Ninilchik test wells, their locations on the Cook Inlet coast require Wetlands Permits (COE), hence the need for Section 106 Compliance. Criteria used in determining the significance of an archaeological site or other historic property are the same as criteria for determining the eligibility of the resource for listing on the National Register of Historic Places (36 CFR Part 800, Subpart B [Section 106]; National Register Bulletin 1991:2)~ The Criterion under which an archaeological site can be determined to be eligible for listing on the National RegiSter is stated as "(those sites) That have yielded, or may be likely to yield, information important in prehistory and history (loc. cit.)." Alaska Heritage Resource Survey (Al:IRS) The Alaska Department of Natural Resources, Office of History and Archaeology is the repository for cultural resource site data for the. state' of Alaska. Data that is. kept. in the At-IRS records includes locational information, primary site records, and documentation related to specific prehistoric and historic properties in the state. This report includes a review of AHRS data for the vicinity of the project. Literature Search Archaeological investigation was conducted in the Ninilchik area on several different occasions. In 1955, George Schaller located two sites within several hundred feet of the proposed Central Ninilchik Prospect Area. The two prehistoric sites (KEN 082/UA78-509 and KEN 083/UA78- 510) are remnants of house depressions (Figure 2). The houses are located approximately 200 feet apart on the east side of the Sterling Highway. Each site consists of a single house depression with two adjoining rooms and three adjacent depressions (Schaller 1955). Many archaeological sites and historic properties are located in and around' Ninilchik. Five historic properties are located in Ninilchik: Ninilchik Old Russian Schoolhouse (KEN 031), Old Ninilchik (KEN 032), Holy Transfiguration of Our Lord Chapel (KEN 046), Creole Cabin (KEN 060), and Ninilchik Village Store (KEN 218). Approximately two miles southwest of Ninilchik UN01-CK2.doc 1 Stephen R. Braund & Assoc. 23 March 01 is the Deep Creek Wayside Site (KEN 044). Just to the east of Ninilchik is a prehistoric site- Jackinsky Creek (KEN 158), and 2.5 miles to the southeast is another prehistoric site-Deep Creek Fork Site (32EN 157). Many of these sites were recorded as a result of surveys carried out by the Cook Inlet Native Association for the Cook Inlet Region Inventory of Native Historic Sites and Cemeteries (CINA 1975). BackRround Alaska is believed to be the gateway for the movement of Native.Americans into North America during the last ice age. A bridge of land extended from eastern Siberia to western Alaska. This land bridge, or Beringia, was exposed during the time of the ice age when water levels were lower than they are presently. The oldest archaeological sites in Alaska are located in the interior of the state. The interior of Alaska was free of glaciers while much of Canada and the Northern United States were buried under glaciers. Interior and coastal ~Alaska was home to people of the Pa, leoarctic tradition. Sites in the interior that date to 9,000-11,000 yeaxs ago, such as the Dry Creek Site just outside of Healy, provide evidence for the presence of Paleoarctic people (Clark 1981; Dixon 1985). The presence of Paleoarctic culture in the Cooklnlet area has been established through the documentation of a component at Beluga Point. This evidence suggests that occurrences of the early cultural remains may be discovered elsewhere in the Cook Inlet area. Paleoarctic sites in southern Alaska west of the Alaskan Range include lake outlets in the piedmont areas West of the mountains .(Harritt nd), and areas of the Cook Inlet shoreline. Paleoarctic people are believed to have been' primarily hunters of large game, such as caribou. They led a very mobile lifestyle, and relied almost exclusively on tents or other types of temporary structures for shelter. The Northern Archaic culture followed the Paleoarctic culture, dating as early as 6,000 years in age (Smith and. Shields 1977). Northern Archaic people are believed to have continued the highly mobile big game hunting focus of their cultural predecessors. However, the remains of Northern Archaic culture along salmon streams in the Alaska Peninsula and other areas suggeSts the use of this resource as well. A Northern Archaic' component has also been found in the Susitna River Canyon vicinity at the Fog Creek site, dating as early as approximately 5,000 years in age (Dixon 1985:54, 57). The so'called prehistoric Athapaskan tradition contains distinctive elements of Northern Archaic 'cUlture, and is based primarily onthe So-called Tuktu culture of northern interior Alaska (Clark 1981:111-113). It is important to note that.in some definitions, the beginning of the Athapaskan tradition is placed at 1,500 years ago (Dixon 1985:59,61). Many researchers question'the validity of the Athapaskan tradition as an archaeological entity. This is due to the potentially long time span of the Athapaskan tradition -- from several thousand years in age to late prehistoric times -- and the rather broad variability that occurs in tool assemblages .across the interior western Subarctic (Clark 1981:128-129). The affinities of Athapaskan cultures with the Northern Archaic culture are generally accepted as evidence of a long cultural continuity in interior Alaska. However, the variations on the Northern Archaic theme which followed, from approximately 4,000 years ago to several centuries prior to European contact, suggest diverse origins for the ethnogenesis of the historic Athapaskan groups. Kachemak culture was discovered in Cook Inlet by de Laguna at Yukon Island, Kachemak BaY, in the early 1930's (de Laguna 1975; originally "Kackemak" was designated as Yukon I, Yukon II, etc.). As it was initially conceived, Kachemak material culture included elements routinely UN01-CR2.doc 4 Stephen R. Braund & Assoc. 23 March 01 ascribed to Thule Eskimo technology such as ground slate ulus, seal oil lamps and splitting adze heads; and elements that were manufactured by chipping. Later work accomplished in areas adjacent to Cook Inlet now supports the view that Cook Inlet Kachemak culture, as defined by de Laguna (1975), is a variation on a cultural trend centered on Kodiak Island. This view is supported by the temporal precedence of Kachemak elements on Kodiak, as well as a later persistence of the tradition, at locations such as Three Saints Bay and Crag Point (cf. D. Clark 1984a; W. Workman 1977:33; Workman and Workman 1988:344). In a recent assessment, Reger and Boraas (1996) suggest that the distinctive settings of several sites located inland on the Kenai Peninsula along stream courses represent previously unrecognized "Riverine Kachemak" occupations of this area. These occupations are distinguished from the "Marine Kachemak" occupations, but they are consistent with Kachemak as initially defined. The "Riverine Kachemak" occupations continued to sometime after 1100 years ago, after the marine version had disappeared from coastal locations. Present age estimates for this culture is approximately 3000-1000 years ago (Reger and Boraas 1996). Kachemak sites that are presently documented in Cook Inlet demonstrate, some degree of concentration around Kachemak Bay and the Kenai River area (Keger and Boraas 1996). The appearance of Eskimo culture in southwest and south-central Alaska immediately followed the disappearance of Norton culture on the Alaska Peninsula. There is a lack of archaeologica! sites in the Cook Inlet region between the end of Kachemak culture, 1500-1000 years ago and the appearance of the historic Eskimo, indicating a lack of human occupation in this area during this time period (Workman and Workman 1988). Historic Koniag areas on the Alaska Peninsula and Kodiak Island provide evidence that Kachemak culture evolved in situ into the historic Koniag Eskimo form of culture (:[ordan and Knecht 1988). Late prehistoric Thule occupations of the middle Cook Inlet area prior to the arrival of the Dena'ina Athapaskans have been a consideration since the first archaeological study of the area was carried out (i.e., Reger and Boraas 1996:166). Speakers of the Yup'ik Eskimo language branch of the Thule Eskimo culture occupied the coastal areas of southwest Alaska at the time of historic contact by Russian explorers in the mid-Eighteenth century. Examples of sites with Thule culture affinities include a late component at Beluga Point and the Fox Farm site in Kachemak Bay (op cit.). In the case of Beluga Point, it is thought that the Thule component, dating t° approximately 800 years ago, originated f/'om an Eskimo intrusiOn from the Prince William Sound area~ . For Fox Farm, the 1300-1000 year old Eskimo component is believed to have originated from an incursion from Yup'ik areas in Bristol Bay;' based on the affinities of the artifacts. The late prehistoric to early historic native culture of Cook Inlet was that of the Dena'ina (previously, "Tanaina"), a distinctive Athapaskan tribe With its own distinctive dialect of the NaDene' language. Kari estimates a temporal depth of 1500 years for Inland Dena'ina, before they arrived in most areas of Cook Inlet (Karl and Fall 1987:13). The Dena'ina language is one of the most internally diverse Alaskan Athapaskan language, and falls into two major linguistic divisions, Upper Inlet and Lower Inlet. Upper Inlet is a single dialect, but Lower Inlet can be divided into three dialects- Outer Inlet, Iliamna, and Inland. People living in the area near Ninilchik spoke the Outer Inlet Dialect. If the Dena'ina were not the direct ancestors of Northern Archaic inhabitants of inland areas in the vicinity, they are nevertheless closely related to the proto-Athapaskan ancestors, of the historic Athapaskan cultures of interior Alaska. UN01-CR2.doc 5 Stephen R. Braund & Assoc. 23 March 01 Language elements of the earliest Athapaskans can be found in traditional Dena'ina language and culture (Kari 1988:322-323). Traditional settlement locations were in lakeside settings or on streams with salmon runs. The inhabitants of a village maintained traditional seasonal use of specific areas for hunting and fishing throughout the year (Ellana and Balluta 1992: 17-19). Settlements were connected to hunting and fishing camps by networks of trails. Wayside types of camps often occurred along trails to hunting areas more than one day's march from the settlements. These were locations where brush or tent structures would be located for brief use (Harritt nd). The Dena'ina followed seasonal rounds that strongly paralleled, their traditional, late prehistoric uses of their territory as late as 1900 (Ellana and Balluta 1992:308-309). In fact, many aspects of traditional use have been retained in modem times at isolated villages such as Stoney River and Lime Village, in spite of processes related to acculturation, and epidemics that wiped out large segments of the population (Ellana and Balluta 1992:Fig. 24 and text). Game animals of primary importance to the inland Dena'ina include moose, caribou, black bear, brown bear and Dall sheep. Important fish resources include salmon, white fish and pike; various waterfowl are important as well. Beluga whales were an important resource also for groups inhabiting areas of the Cook Inlet shore , Assessment of Existing Information The search of the AHRS files indicated several archaeological 'sites within 5 miles of the proposed project area. The closest site, approximately ¼ mile away from the South Ninilchik Project, is a prehistoric house depression with 2 adjoining rooms and three adjacent small depressions (KEN 082). A second house depression with 2 adjoining rooms and three adjacent depressions is located two hundred feet from the first location (KEN 083). There are ten sites located within a five-mile radius of the proposed project area. All but four of these sites are located in Ninilchik. A pattern of occupation along the coast of this area has been established through past archaeological investigations. Recommendations BeCause of the proximity.Of documented cultural resources to the area of the proposed project (Figures 2, 3, and 4), it is recommended that an archaeological compliance survey be conducted in the area of potential impacts prior to the initiation of project related disturbances. UN01-CR2.doc 6 Stephen R. Braund & Assoc. 23 March 01 , l~>[0t~cR2~do¢ REFERENCES Cantley, Garry and Janet 1986 BIA Recommendation for Archaeological Clearance for Sale of Native Allotment AA006998, Arnold E. Oskolokoff. On file State Historic Preservation Office, Anchorage. CINA (Cook Inlet Native Association). 1975 Cook Inlet Region Inventory of Native Historic Sites and Cemeteries. Cook Inlet Historic Sites Project. Compiled by the Cook Inlet Native Association, Anchorage. Clark, A.M. 1981 Koyukon. In Subarctic, J. Helm, ed. Handbook of North American Indians, Vol. 6. W. Sturtevant, gen. ed. Smithsonian Institution, Washington, D.C. pp. 582-601. Clark, D. 1981 Prehistory of the Western Subarctic. In Subarctic, J. Helm, ed. Handbook of North American Indians, Vol. 6. W. Sturtevant, gen. ed. Smithsonian Institution, Washington, D.C. pp. 107-129. 1982 From Just Beyond the Southern Fringe: A Comparison of Norton Culture and the Contemporary Kachemak Tradition of Kodiak Island. Arctic Anthropology 19(2): 123-132. 1984a 1984b Prehistory of the Pacific Eskimo Region. In Arctic, D. Damas, ed. Handbook of North American Indians, Vol. 5. W. Sturtevant, gen. ed. Smithsonian Institution, Washington, D.D. pp. 136-148. .Pacific Eskimo: Historical Ethnography. In Arctic, D. Damas, ed. Handbook of North American Indians, Vol. 5. W. Sturtevant, gen. ed. Smithsonian Institution, Washington, D.C. pp. 185-197. 1988 Pacific Eskimo Encoded Precontact History. In "The.Late Prehistoric Development of Alaska's Native People." R.D. Shaw, R.K. Harritt and D.E. Dumond, eds. Aurora No. IV.. AlaSka Anthropological Association, Anchorage. pp. 211-223. 1991a Western Subarctic Prehistory. Archaeological Survey of Canada, Canadian Museum of Civilization. Hull, Quebec. Crozier, Neal S. 1984 BIA Cultural Resource Inventory of Eight Native Allotments and Two Road Projects. On file State Historic Preservation Office, Anchorage.. UN01-CR2.doc 9 Stephen R. Braund & Assoc. 23 March 01 1985 Big_ Archaeological Inventory of Five Native Allotments Four Townsite Lots, Anchorage Agency, NADB No. 1400129. On file Office of History and Archaeology, Anchorage. 1985 BIA Archaeological Inventory of Five Native Allotments Four Townsite Lots Anchorage Agency, Townsites Owned by Roberta, Allen, and Micha Oskolkoff. On file State Historic Preservation Office, Anchorage. Dixon, E.J. 1985 Cultural chronology of central Interior Alaska. Arctic Anthropology 22(1): 47-66. Ellanna, L. and A. Balluta 1992 Nuvendaltin Quht'ana: The People of Nondalton, Smithsonian Institution Press, Washington, D.C. Harritt, R. n.d. Archaeological Resources in Lake Clark National .Park and Preserve: An Overview and Assessment. Unpublished ms on file, U.S. National Park Service, Anchorage. Jordan, R.H and R.A. Knecht 1988 .Archaeological Research on Western Kodiak Island, Alaska: The Development of Koniag Culture. In "The Late Prehistoric Development of Alaska's Native People." R.D. Shaw, R.K. Harritt and D.E. Dumond, eds. Aurora No. IV. Alaska Anthropological Association, Anchorage. pp.225-306. Kari, J 1988 Some Linguistic Insights into Dena'ina Prehistory. In "The Late Prehistoric Development of Alaska's Native People." R.D. Shaw, R.K. Harritt and D.E. Dumond, eds. Aurora No. IV. Alaska Anthropological Association, Anchorage. pp. 319-338. Kari, J. and J. Fall 1987 Shem Pete's Alaska, the Territory. of the Upper Cook Inlet Dena'ina. J. Karl and J. Fall, eds. Alaska Native Language Center, 'University of Alaska, and the ClltI Foundation, Fairbanks. Kodack, Marc; Nan Collins; Tom Schley 1981 BIA Archaeological Inventory of Charles Johnson Native Allotment A-48652. On file State Historic Preservation Office, Anchorage. de Laguna, F. 1975 [1934] The Archaeology of Cook Inlet. 2nd edition. The Alaska Historical Society, Anchorage. Reger, D. and A Boraas UN01-CR2.doc 10 Stephen R. Braund & Assoc. 23 March 01 1996 Overview of the Radiocarbon Chronology in Cook Inlet Prehistory. Paper presented at the 20th Annual Meeting of the Alaska Anthropological Association, Anchorage. Schaller, George B. 1955 Some Artifacts fi.om Ninilchik, Alaska. Office, Anchorage. On file State Historic Preservation Smith, G. and H. Shields 1977 Archeological Survey of Selected Portions of the Proposed Lake Clark National Park, Lake Telaquana, Turquoise Lake, Twin Lakes, Fishtrap Lake, Lachbuna Lake and Snipe Lake. 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