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Home My WebLink AboutCO 509 ~: ( INDEX CONSERVATION ORDER NO. 509 HAPPY VALLEY NO 4 1. December 17, 2003 2. December 23, 2003 Unocal's Request for Spacing Exception. Notice of Hearing, Affidavit of publication, e-mail Distribution list, bulk mailing Conservation Order 509 Re: ( ( STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 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)(4) to provide for the) drilling and testing of the Happy Valley ) No.4 gas development Well. ) ) Conservation Order No. 509 Happy Valley No.4 Drilling and Testing February 17, 2004 IT APPEARING THAT: 1. Union Oil Company of California (UNOCAL) submitted an application dated December 17, 2003 requesting exception to the well spacing provisions of Title 20 AAC 25.055(a)(4) to allow drilling the Happy Valley No.4, gas development well to a location which is within 3000 feet, and within the same governmental section as the Happy Valley No. 2 and No.3 gas wells. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on December 23, 2003 pursuant to 20 AAC 25.540. 3. No protests to the application were received. FIND IN GS: 1. The Happy Valley No.4 gas development well will be drilled as a deviated hole with a surface location 1297 feet from the east line and 1270 feet from the south line of Section 22, T2S R13W, Seward Meridian (SM) to a bottomhole location 1579 feet from the east line and 1551 feet from the south line of Section 22, T2S R13W, SM. 2. The Happy Valley No.2, No.3, and No.4 wells are all located within a unit known as the Deep Creek Unit. Offset landowners, owners and operators within 3,000 feet of the anticipated productive interval of the Happy Valley No.4 well have been notified. 3. 4. No protests to the spacing exception application were received. 5. The location of the Happy Valley No.4 well was selected as a favorable structural postion for recovery of Beluga and Tyonek Formation gas reserves ( ( that are not believed to be recoverable from the Happy Valley No.2 or No.3 wells. 6. An exception to the well spacing provisions of Title 20 AAC 25.055 (a)( 4) is necessary to allow the drilling of the Happy Valley No.4 gas development well. CONCLUSIONS: 1. Information derived from the drilling of the Happy Valley No.4 is required to delineate and allow for the efficient management of Deep Creek Unit gas reserves. 2. Drilling and producing the Happy Valley No.4 well will not cause waste or jeopardize correlative rights. NOW, THEREFORE, IT IS ORDERED: UNOCAL's application is granted. Daniel T. Seamount, Jr., Commissioner 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 Alaska standard time 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 re uest is deemed denied i.e., lOth da after the a lication for rehearin was filed. Conservation Order No. 509 Page 2 of 2 Effective Date February 17, 2004 CO 508, 509, 512 { (' 1 of 1 2/20/2004 9:51 AM CO 508, 509, 512 1 of 1 ( Subject: CO 508, 509, 512 From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Fri, 20 Feb 2004 09:50:52 -0900 . . . T(.l:....:l'M civer,. . Brenn.."5bren--~ i vet@adnûn.sta.t~.:(Ù(.u.s> Thanks ( 2/20/20049:51 AM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez (I Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 ( Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider . US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ( David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,lD 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ~ Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 (' n 1 alte& :;l /r9-0 I? 4- Mary Jones . David McCaleb XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise,IO 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 James Gibbs PO Box 1597 Soldotna, AK 99669 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation land Department PO Box 129 Barrow, AK 99723 #2 STATE OF ALASKA INVOICJ' NOTICE TO PUBLISHER ... ADVERTISING ORDER NO. ADVERTISING ':;T BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO,( riFlED AO-O2414017 ORDER AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED Cút-'Y OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie December 22.2003. 0 Anchorage,AJ( 99501 PHONE PCN M (yon 7C)'i -1 ??1 - DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News December 23,2003 0 POBox 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: STOF0330 Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified D Other (Specify) SEE A TT ACHED SEND.lNVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT Sy CC PGM LC ACCT FY NMR DIST LlC 1 04 02140100 73540 2 3 4 ~-- / /ì J! REQUISITIO ED BY\ / ~ tî1ILJ" DIVISION APPROVAL: . ." .." ----, '-.., "'-"" """ --- 1 /1 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: The application of Union Oil Company of California (UNOCAL) for a spacing exception to allow the drilling and production of the Happy Valley No.4 Gas Development Well in accordance with 20 AAC 25.055. UNOCAL by letter dated December 17, 2003 and received by the Alaska Oil and Gas Conservation Commission (Commission) on December 19, 2003, has requested the Commission to issue an order in conformance with 20 AAC 25.055 allowing regular production of the Happy Valley No.4 Gas Development Well from a location within the same governmental section and within 3000 feet of another well capable of producing from the same pool. The surface location of the proposed well is 1270 feet from the south line and 1297 feet from the east line of Section 22, T2S, R13W Seward Meridian (SM). The proposed bottomhole location is 1551 feet from the south line and 1559 feet from the east line of Section 22, T2S, R13W, S.M. The Commission has tentatively set a public hearing on this application for January 27, 2004 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on January 12, 2004. 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. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on January 23, 2004. 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 793-1230 no later than January 13, 2004. ~~ P~? '" ,/ . t. ", ,".. ,-..- --- --- l..--...- ¡;:;:¡ .' Sar~ Palin, Chair. Alaska Oil and Gas Conservation Commission Published December 23, 2003 ADN: 02410417 I ðßchorage Daily News Affidavit of Publication ( 12/2372003 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PERDAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 37416 12/23/2003 AO-02414 STOF0330 $163.56 $163.56 $5.00 $0.00 $0.00 $0.00 $0.00 $168.56 Signed 7¡?¡t a -I j ~ Nolice of Public Hearing , STATE OF ALASKA' Alaska Oil and Gas Conservation Commission Re: .The application of Union Oil..Companv of Cali- . forma. (~NOCAL) for a spacing exception to allow the drilling and production of the Happy Valley No. 4. Gas Development Well in accordonce with 20 AAC 25.055. " UNqCAL by letter dated December 17, 2003 and received by the Alaska Oil and GtlsConservotion Commlss.ion (Commission) on December 19 2003 ,h'as requested the Commission to issue on order i~ conformonce with 20 AAC 25.055 allowing regular ,production of the I:!ClPPV Valley No.4 Gos Devel- opment W.,.II Trom 0 location within the same gov. ern"....: r, 1(11 ~.., 1,0r. (¡l'1d within' '3000 feet of another 1111..11 COPO[lI", ür aroduclng 'ro." In", $orrot:' PC..,I Tn", ~upQJ;'e lo(otic,rl'ofthe pr,;prJ~..d \\'ell i~ 1:~(1 fee.tfrom th~'south lin.e and 1,9' I",e' IrOl'l" ,r", eo", line of Sectlon22,T2S, R13W Seward Meridian (SM).Theproposed bottomholelocCition is'1551 feet from the south II ne ond1 559 feet. from .Ihe east line of Section 22iil"2Sr'R13Wr<S,M.... The Commission has tentatively set .a public hear" " ing on this application for Januarv27, 2004 at 9'00 ,a,,!! a.t the Alaska Oil and Gas Conservation Com. miSSion at 333 West 7th Avenue, Suite 100, Anchor. age, A,laska 99501. A person mavreRuest that the tentatIvelY scheduled hearing be held bv filing a written request with the Commission no later than 4:30 pm on. January 12,2004. ST ATE OF ALASKA THIRD JUDICIAL DISTRICT Teresita Peralta, 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 said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. If a re~uest for a he~ring is nottlmelv filed, the. C9mmlssion will consider the IssUan¡:eof on order without a hearing, To learn if th'eCommissionwill hold the public hearing, please call 793-1221. 'In addition, a person may submit written com- ments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue,Suite 100, Anchorage, Alasko,:99501. Writ" ten comments must be, received no later than 4:30' pm on January 23, 2004. ' , ,':' . '. . ' ,If YOU are a pe!~on ~ith. a disabilitvwho nl.avneed, a special modification In order to comment or to atten.d the public hearing, please contact JodY Co- lombie ot 793-1230 no loter than January 13, 2004. , , " Sarah Palin, Chair . Alaska Oil and Gas Conservation Commission Published: December 23,2003 Subscribed and sþ': to me before this date: I d d3,Á>.3 Notary Public in and for the State of Alaska. Third Division. Anchorage, Ala. Ska;6 .---- MY COMMISSI ON EXPIRES: / ¿;¿ '9-/0..) !S','" --,,~ G 1 ' ,I \: .~~' "",, I/: \.\. .~~'fr" . . . .'. II.¡¡~ ~ ~ .J.;.~. ." ."".. '" ...0-::-;:.. ~ «,.).,'~OTARr',~~ '- ......... - ..... - - ~- . J~UBL\C ::: ~r¡,~ .v' . ..... .""~ ......... ~.' ...... ~:.. .. .1~nr:.: a.~~.. $' ./, . Vir""" :\ .-:', .",.., ",\ '; " .. ..,/ ,"It ' '\ .~ j))))}}},¡])\\~ STATE OF ALASKA ADVERTISING ORDER SEE. BOTTOM FORINVOICE'ADDRES$ INVOIC{ .8T BE I~~r~~~ S~21~~~~~~I~~~ER NO( ,TIFIED ADVERTISING ORDER NO. AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO-02414017 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West ih Avenue, Suite 100 0 Anchorage, AK 99501 M 907-793-1221 AGENCY CONTACT DATE OF A.O. T 0 Anchorage Daily News POBox 149001 Anchorage, AK 99514 DATES ADVERTISEMENT REQUIRED: December 23,2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for - consecutive days, the last publication appearing on the - day of . 2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This - day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER Public Notices ( (' lof2 12/22/2003 2:00 PM Public Notices ( f 2 of2 12/22/2003 2:00 PM Two Notices (( ( Subject: Two Notices From: Jody Colombie <jody - colombie@admin.state.ak.us> Date: Mon, 22 Dec 2003 13:57:44 -0900 . . TofLegal.AdsAnch6rage Dan yNews <Ie gåJads@adn.com> Please publish the attached notices tomorrow! Merry Christmas Jody Content-Type: applicationlmsword Ad Order form2.doc Content-Encoding: base64 I...........................................................................................................................................................................................................".................................................................................................."...........................................................................................".....................1. ...-.-.--.. ..............._--- ...--.-..--.-...--............---.--...-- - -'--'-'- -'--"-'-----"-'--'- ....----- ._- . ! Content-Type: applicationlmsword: Ad Order forml.doc! 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"""".....-........-...,...............................- .-... . . . . . . . . . . i Content-Type: applicationlmsword i Happyvalley#4.DOCi i Content-Encoding: base64 .. 1 of 1 12/22/2003 1:58 PM Notices ( (' Subject: Notices From: lady Colombie <jody - colombie@admin.state.ak.us> Date: Mon, 22 Dec 2003 13:58:38 -0900 To: angelawebb <angíe_webb@adnin.state.ak.us>,HowardD 'Okland <howardlOkland@aàrnin.state.ak.us> Please publish on the web tomorrow. Merry Christmas Jody . r-"-""""""""'--"""""-""""""""""""""-'""'-""""""""""""""""""'-""""""',T"""-""""""'".-.-.....--.....-.......-.-.....................,....,.................-.-..............-..,.,.........,..............-.......,.................-....-...."""-""'-"""""--'-"""""""""-"-", I I I! 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' Content-Encoding: base64 "...............................,....,.....,............................,.......,...............,............................,..,.................",..................................................._..............".......,-"..............",...".........."............................................................,...................................,.................................... 1 of 1 12/22/2003 1:58 PM Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 ( Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 { David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 #1 (' Unocal Alaska t Union Oil Company of Calif~ 909 West 9th Avenue, P.O. Box 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Fax (907)263-7698 UNOCAL8 Kevin A. Tabler, Manager Land/Government Affairs December 17, 2003 Mr. Bob Crandall Alaska Oil and Gas Conservation Colnlnission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 APPLICATION FOR SPACING EXCEPTION Happy Valley #4 well Unocal Lease # C-061590 ADL # 384380 Unleased CIRI Section 26 Unocal Lease # C-061589 RECEIVED DEC 1 9 2003 Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Crandall: Union Oil Colnpany of California (Unocal) hereby submits this Application for Spacing Exception to drill the referenced "Happy Valley #4" well in the Deep Creek Unit. Our anticipated spud date is late January 2004. In accordance with 20 AAC 25.005 (a), a Permit to Drill and associated filing fees are filed herewith. The Happy Valley #4 well is situated within the Saine govermnental section as Happy Valley #2 and #3, requiring a spacing exception in accordance with 20 AAC 25.055 (a)(4) and if the results of the Happy Valley #4 well are successful, may be within 3000' of a well capable of producing froln the Saine pool. This regulation provides in pertinent part, "not Inore than one well may be drilled to and colnpleted in that pool on any governmental section; a well may not be drilled or colnpleted closer than 3,000 feet to any well drilling to or capable of producing froln the Saine pool." This well location is structurally high on the fonnation and is a crestal withdrawal based on seislnic, dip Ineter and subsurface data available to Unocal. """"L\.r'-\"'I'(""""¡':I!i.'~'~" , ,: I :, I I: ,~ , , 1....J~",(:,,"')!':'I\.~IL , "..J ! \ L' "'w' II ~ \i I . ( ( 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 outlying properties within 3,000 feet of the Happy Valley #4 well. A copy of this application (landowner notice) along with a certified mailing receipt has been attached to this application. Additionally, the owner and operator (Unocal) and the landowner (Cook Inlet Region, Inc.) are adjacent to lands owned by the Department of Natural Resources. Pursuant to 20 AAC 25.055 (d)(2), enclosed is a plat, identified as Exhibit "A", which shows the location of the well for which the exception is sought and all adjoining properties. Also enclosed, Exhibit "A-I" identifies the owners, landowners and operators associated with each tract. Pursuant to 20 AAC 25.055 (d)(3), an affidavit is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true. It is requested that the Commission approve an exception to the statewide spacing regulation for the drilling of the proposed Happy Valley #4 well. If you require additional information regarding the Happy Valley #4 drill site, please contact Mr. Jerry Bowen, drilling engineer at 263- 7640, or you lnay contact the undersigned at 907-263-7600. Sincerely, cI~ Enclosures cc: CIRI DNR (' ( (, VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA Unleased CIRI Section 26 ADL-384380 UOC #C-061590 Unocal Lease # C-061589 Happy Valley #4 well I, KEVIN A. TABLER, Manager, Land and Government Affairs, Union Oil COlTIpany of California, do hereby verify the following: I am acquainted with the application submitted for the drilling of the Happy Valley #4 well in the Deep Creek Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) 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 17th day of December, 2003. vin A. Tabler Mgr., Land & Govt. Affairs STATE OF ALASKA ) ) ss ) THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before lTIe this 17th day of December 2003. ~~\\\\\\mmIJlIJ~~, ~ ".31. A. S"r.. ~~, ~ ~TI ;.'.""...[-"1 ~, ~ ~ ..~«\\'I\\SS¡O", S'~'. ~A\.~I" ~..:::> .'vU' , "1Q .0"...; ~ §"':)..~ \.."1-~, ~ :"~ ¡p'. ~ ~ ~ NOTARY ~ ~ ~ ]It. \. PUBLIC.f ~~ :::e :'T" . . 0 .,.. š ~ c.r;.'<&6,1 4. 'tÏ)~~.'o~ ~ ~ '.1¡-;".":... \ ~c:? ~ ~, (.- OF þo.~~. ~7!¡lllIml m\'.\\\~ ~a~ N T ARY PUBLIC IN AND FOR THE STATE OF ALASKA My Commission expires: .;1..- / Y. - tJ 6 ( ( EXHIB IT "A -1 " LEASE LANDO WNER 0 WNER OPERATOR Unleased CIRI Cook Inlet Region, Inc. CIRI Unleased (Sections 26) 2525 C Street, Suite 500 T2S-R13W Anchorage, Ak 99509 Attn: Kirk McGee ADL-384380 DNR U nocal U nocal (Portion Section 22) Division of Oil and Gas T2S-R13W 550 West ih Avenue, Suite 800 Anchorage, Alaska 99501-3560 Attn: Carol Lee C-061590 Cook Inlet Region, Inc. U nocal U nocal (Sections 22, 23, 27) 2525 C Street, Suite 500 T2S-R13W Anchorage, Ak 99509 Attn: Kirk McGee C-061589 Cook Inlet Region, Inc. Unocal Unocal (Section 21) 2525 C Street, Suite 500 T2S-R13W Anchorage, Ak 99509 Attn: Kirk McGee ~ÜH~~._i H C-O61 17 24 28 DEEP CREEK UNIT HAPPY VALLEY 4 34 N A 0.5 I 0.25 a 0.5 I 3 Miles Alaska State Plane Zone 4, NAD27 i Check type of mail or service: [ Affix Stamp Here ; '! (11 issued au : ~ n RecordecI DeBvery (/I>temaIionaI) ¡ œr1iIIt:allf 01 mailii1ø. i ,--, COO. n - ~ tøradditiot'ral LA ! ;:1 D~ Conrwmation ~ ,:. rot Mecchandise ¡:,.., of INs bill) -- I/~ Dr ~a L- - .LiL=;_~__---___~~~n___-- I~~ 1_------ m__~__"-~u---~----"- ----:-----.----. .. .f..l ~ I I I r HancIing, AduBlVaJue; In8IIred !Du8Sender¡ DC i SC j SH ¡ AD; RR Unej ArIIcIe Number I AddÆ- NIIII8, &reet. aM PO AddIes& ¡ postage ¡ Fee ¡ ChaIgø! it Regislered; Value 1 if COD i Fee I Fee ¡ Fee ; fee ! Fee - 7óiu' 03'~[J' ÖÕ[}S'-'5-~~~--"~-~;-"~'d~~~"----- -- ... - -'- .. ---r "ÖlOr--'~ r---I .--. '-"'r----- -r-----T-- ¡---- "-J '-"r -- T[-7~ 2 r- . .'- -- n. - -'- . -~~ :_-:.~::t;~ ~ --'r'- ---I: :=-r~==-! --:--- -r ~~::l=T-= r~~ _:~; ',: '-_h~'~ 3 ; po W. ¡fh Avenue Ste 800 ¡ ; ! ; . ; !,,', - h-- non. -- ----~ :-_=~1?' - ~~~o~~. -~- -:_:~E~-::-F-_:J--==f---.~I>-:F --Ill: ~ -~ -- ?001 0320 ODDS Sa!b &:faOt! ! i ¡ ] ; ¡ ¡ ¡ \ ¡ ~'I .:: a .-. --+-.-... -_.------~U'--_'~-_h _._---._---._--_...L---~-_._-_., ~-U¡m Kì ------...- '0' ~) . . . I' - . . C rk McGee. . 1\ N"rr J"' ! ! ¡ ¡ I 1 ! ¡:~ i :d; .-.---. '-." ; oak 'nletReglOn,~---.-rt-~-----t---._. ---r--- '-'-r'----'-T' 1-- --¡--'-T---i - '-'=, '" 2525 C Street Suit i:ftð ! ; ! i ; ¡ : ¡.; --: :;~ ¡ .;. ...Á . , eii!'UU ¡ ¡. ¡ I ! I ~ i:::i~~¡.,¡":" nchotage;-AK- 9956& ----_!.......--. .--'--. -------'---- I ... --'- . .----.J.---.-------:...-.. -1--' ,~.~-~- --~~ ~-"'- -----. -- ...- ~-~~ .:-- --!-.-- n:_.___-...-- ---t .. ~ I..~ !-~ g ! - ~-} ~ cJ ~ "-~-""---"'-----! ~ ! ¡ .t--. ¡ r6~ i /il . ! ~ ¡ ~ I .;'1 _.- ¡..- J ¡ - ---- ---. - -.. .' ---- ,-. ._. ....u_----,"- ..--.--..,-.------,---- ---------r- .- ---. u_------" "'--'---~~~"'-~ - .. ....-----¡----- ¡ r-- I' _.._._-_t_----_-L,--.-L...~:L_--L--_-L..LJ._J.- i r~. Per (NaIiIe of teceMng emp/oy86) 1T11e .... ctedali\ÍOII 01 value 18 requm on ai 00IrIuIC and im8mdonaI regisIIt8d ",ail. Tbe lNIIÌnIum iIIdenIniy ~fot !be 'I trKOI\SÙIICIÏI)n 01 ~ docuar8/11S IIIIdcr ExpIas Mal dacuM8I1treconalrvclian ÍII$U1ance is S5OO pet p;eee sllbjKtlO ; ~ fIniIúon~ fur mullipla piKes Ia8t or damag8$ ÎI'I . UIgIe catasI1opbIc oecun_. Th9 lftUÌIIIum incl8mMy payabl& ! ,011 Expres$ t.uiI merebandlle insurance 18 S5OO. ÞIII 0IIiIInaI Eq¡l- Mail s.mc:e IIItrcIIandiM iMIIra!Ice is .valable lot 11910 ! tS5.OOO 10 some. but no! .. CIIWIIII8I. TIle maùftutII indHInly payaÞIa is $25.000 for repI8I8d IIIai. See Dom8Slic llai! ! [AI 81I/IaJ R9OO. 59 t 3, ami S9l' lot IiIniIaIooII 01 coverage on insured and CO D rII aI. See ~ AId ItknuaJ lor irniI8 lion I ¡ ¡of . an internalilmll mal. 10 SIa!Idard Wail &lid S/AIId8RI Nd Complete by Typewrlt8r, Ink, or .... Point Pen Nam" and Address of Sender --.-....-. --' .------.... """"""" 4! -..i-. .--'--- sl ~-L . -..-.....- !¡ ~-t ... 9; "--'f .--_. i 10¡ ,-----,- ... -' .. ---- >,...- -'---.---...'- 11: ---r On.." -, . .---.- . I 12' .. L--_..,-------... i 131 -- .---! .--.--..-, --' 141 -_.~,.--_.-..-.....-.- i 1S! ! . T öt~i Ñ;¡m¡;e¡ õfÑeœS LiSted by Sender .- .'. ----.----.--- ,'- ,.--.,- ..- .. - ------ -- -- T T õiåÏ Nïmiiier oi PiëõBi - - ..- ~ Received at Post Office J-- "---- g.1 PS Form 3877, A19W 2000 ,( STATE OF ALASKA r ALASKA Ol~ I"NO GAS CONSERVATION CL.J1MISSION PERMIT TO DRILL 20 AAC 25.005 1 a. Type of work Drill: X Redrill: 1 b. Type of well Exploratory: X Stratigraphic Test: Development Oil: Re-Entry: Deepen: Service: Developement Gas: Single Zone: Multiple Zone: X 2. Name of Operator 5. Datum Elevation (OF or KB) 10. Field and Pool Union Oil of California (Unocal) 738.5' KB to MSL feet Wildcat in Beluga 3. Address 6. Property Designation & Tyonek Gas Sands P.O. Box 196247 Anchorage, AK 99519 C 061590 4. Location of well at surface 7. Unit or property Name 11. Type Bond (see 20 AAC 25.025) 1270' FSL, 1297'FEL,Sec.22, T2S, R13W,S.M. Happy Valley At top of productive interval 8. Well number Number U 62-9269 1551' FSL, 1579'FEL,Sec.22, T2S, R13W, S.M. Happy Valley #4 At total depth 9. Approximate spud date Amount $200,000 1551' FSL, 1579'FEL,Sec.22, T2S, R13W,S.M. 02/20/04 12. Distance to nearest 13. Distance to nearest well 14. Number of acres in property 15. Proposed depth (MO and TVO) property line 2259 feet 1769 feet 3040.04 11,447' I 11 ,383' feet 16. To be completed for deviated wells 17. Anticipated pressure (see 20 AAC 25.035 (e)(2)) Kickoff depth: 4100' feet 40° Maximum hole angle: Maximum surface 3838 psig At total depth (NO) 4929 psig 18. Casing program Setting Depth size Specifications Top Bottom Quantity of cement Hole Casing Weight Grade Coupling Length MD TVD MD TVD (include stage data) NIA 16" 82.77 A-252 (welded) 60-80' 0' 0' 60-80' 60-80' NI A - driven to refusal 12 1/4" 9 5/8" 53.5 N-80 BTC 1 037' 0' 0' 1037' 1 037' 93 bbls (320 sx) 81/2" 7" 29.0 L-80 BTC-mod 4100' 0' 0' 4100' 4100' 75 bbls (245 sx) 61/8" 31/2" 9.2 L-80 IBTC-mod 11 ,447' 0' 0' 11 ,447' 11,383' 217 bbls (531 sx)* *Contingent upon log analysis. 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary RECEIVED DEC 1 92003 Alaska Oil & Gas Cons. Commission Anchorage 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: X Diverter Sketch: Drilling program: X Drilling fluid program: X Time vs. depth plot: X Refraction analysis: Seabed report: NIA 20 AAC 25.050 requirements: 21. I herby certify that the foregoing is true and correct to the best of my knowledge: By ~ ~.91~ tfJ/l. Phil Krueger Title: Drilling Manager Date: 12/18/2003 Signed: Commission Use Only Permit Number API number Approval date See cover letter .2r'}..3- 2..-2...3 ..5'0 -2-3/- .2.. CD I 7 for other requirements Conditions of approval Samples required: [] Yes MNo Mud log required: [] Yes 1X1 No Hydrogen sulfide measures [] Yes j>4 No Directional survey required WYes [] No Required working pressure for BOPE [] 2M; [] 3M; [] 5M; [] 10M; [] 15M Other: by order of Approved by Commissioner the Commission Date: Form 10-401 Rev. 12-1-85 ORIGINAL Submit in triplicate