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Home My WebLink AboutCO 521 I~ ,-, 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. /1 -- ~/:2 2- L Conservation Order Category Identifier Organizing (donû) RESCAN DIGITAL DATA 0 Color items: 0 Grayscale items: 0 Poor Quality Originals: 0 Other: o Diskettes, No. OVERSIZED (Scannable with large plotter/scanner) o Other, Norrype ~ Maps: I o Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) o Logs of various kinds NOTES: o Other BY: DATE: /5/ Scanning Preparation TOTAL PAGES ~ 7 BY: H/~ Productio'¡ Scanning Stage 1 / / I DATE: 7/2z /(.11./ /5/ P AGE COUNT FROM SCANNED DOCUMENT: PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: .2.7 / YES NO BY: ~ DATE: Stage 2 . IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: -d~,¡ I / 15/ YES NO BY: (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL AnENTlON IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO OUALITY, GRAYSCALE OR COLOR IMAGES) DATE: 15/ General Notes or Comments about this Document: SCANNED JUL 2 2 2004 5/21/03 ConservOrdCvrPg.wpd ----. /"'" INDEX CONSERVATION ORDER NO. 521 Beaver Creek #14 1. May 12,2004 Marathon's Spacing Exception Request Beaver Creek Well #14 Notice of Hearing, Affidavit of publication, e-mail Distribution list, bulk mailing 2. May 20, 2004 Conservation Order No. 521 ~ ~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Marathon ) Oil Company for an order ) Conservation Order No. 521 granting an exception to the spacing ) requirements of20 AAC 25.055(a)(4) to ) Beaver Creek Unit No. 14 provide for the drilling and production of ) Drilling and Production the Beaver Creek Dnit No. 14 gas ) development well. ) July 20, 2004 IT APPEARING THAT: 1. Marathon Oil Company (MOC) submitted an application dated May 12, 2004 requesting exception to the well spacing provisions of Title 20 AAC 25.055(a)(4) to allow drilling the Beaver Creek Unit (BCD) No. 14, gas development well to a producing location that is within 3000 feet of a well producing from the same pool; 2. Notice of opportunity for public hearing was published in the Anchorage Daily News on May 20,2004, pursuant to 20 AAC 25.540; and 3. No protests to the application or requests for hearing were received. FIND IN GS: 1. The BCD No. 14 gas development well is proposed to be drilled as a deviated hole with a surface location 1325 feet from the east line and 111 feet from the south line of Section 33, T7N RI0W, Seward Meridian (SM) to a bottomhole location 243 feet from the east line and 2051 feet from the south line of Section 33, T7N Rl OW, SM. 2. The proposed productive interval of the BCU No. 14 well will be located approximately 1650 feet from the Lower Beluga Formation producing zones in BCD No.9. 3. Offset landowners, owners and operators within 3,000 feet of the anticipated productive interval of the BCU No. 14 well haveall been notified. 4. The location of the BCD No. 14 well was selected due to reservoir pressure data from the Beaver Creek Field that indicates the laterally discontinuous reservoirs ofthe Beluga Formation cannot be efficiently depleted with 3,000 feet inter-well spaCIng. ~ ~ 5. An exception to the well spacing provisions of Title 20 AAC 25.055 (a)(4) is necessary to allow the drilling of the BCD No. 14 gas storage well. CONCLUSION: Granting a spacing exception to allow drilling and production of the BCD No. 14 gas storage well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners, landowners and operators.. NOW, THEREFORE, IT IS ORDERED: Daniel T. Seamount, Jr., 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 lO-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., 10th day after the application for rehearing was filed). Conservation Order No. 521 Page 2 of 2 Effective July 20, 2004 New Orders lof2 7/28/20048:21 AM New Orders Content-Type: application/msword ~~ J~J.~u' Content-Encoding: base64 Content-Type: application/msword Content-Encoding: base64 CO523.doc - ~ 'J)" application/msword base64 . ~-,-----, ,-" ........1 co, n, ,t,,;-, n ,-,t~,-TY pe,'-:,---,-,-,-~,P,,-,-P-,l,-,',ic',-~-t,i'O-n/ ,,~,-,,-s,w, ord-I.,I.,..I' . CO520.doc . . - Content-EncodIng: base64 'R -"'"".,' Content-Type: application/msword , CO522.doc . - Content-EncodIng: base64 Content-Type: application/msword Content-Encoding: base64 2of2 7/28/20048:21 AM Orders /'"""'" r""-, 1 of2 7/21/2004 1:18 PM Orders ~ ~ i Content-Type: applicationlmsword CO 525.doci . Content-Encoding: base64 Content-Type: applicationlmsword CO524.doc Content-Encoding: base64 Content-Type: applicationlmsword Content-Encoding: base64 ........................................ .................................. ..........................................""""""""""""""""""""""""""'" . . . . . . , i Content-Type: applicationlmsword . CO520.doc' . : Content-Encoding: base64 Content-Type: applicationlmsword CO522.doc , Content-Encoding: base64 . Content-Type: applicationlmsword CO521.doc' . Content-Encoding: base64 2 of2 7/21/20041:18 PM Co's ~. /"*\ thank you. , Content-Type: applicationlmsword CO521.doc. , Content-Encoding: base64 : Content-Type: applicationlmsword CO524.doc: , Content-Encoding: base64 : Content-Type: applicationlmsword CO523.doc: , Content-Encoding: base64 . Content-Type: applicationlmsword CO520.doc: . Content-Encoding: base64 Content-Type: applicationlmsword Content-Encoding: base64 CO Content-Type: applicationlmsword Content-Encoding: base64 1 of 1 7/21/20041:18 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 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 ,~, 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 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 r-' 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, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ?~d III 2 STATE OF ALASKA ADVERTISING ORDER ~ NOTICE TO PUBLISHER r-. ADVERTISING ORDER NO. INVOIC ..,JST BE IN TRIPLICATE SHOWING ADVERTISING ORDER Nc, qTIFIED AO-O2414038 AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHEDì:,DPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 W 7th Ave, Ste 100 0 Anchorage, AK 99501 M AGENCY CONTACT DATE OF A.O. Jody Colombie PHONE May 19,2004 PCN (907) 793 -1221 DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 May 20, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement x Legal 0 Display STOF0330 Advertisement to be published was e-mailed 0 Classified DOther (Specify) SEE ATTACHED REF TYPE 1 VEN 2 ARD 3 4 NUMBER AOGCC, 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 AMOUNT DATE I I TOTAL OF I PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 02910 FIN AMOUNT Sy cc PGM LC ACCT FY NMR DIST LIO 04 02140100 73540 2 3 4 REQUISITION~ ~ -- ¡DIVISION 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: The application of Marathon Oil Company (MaC) for a spacing exception to allow the drilling and production of the Beaver Creek Unit No. 14 (BCU 14) gas development well in accordance with 20 AAC 25.055. MaC by letter dated May 12, 2004 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on May 13, 2004, has requested the Commission to issue an order in conformance with 20 AAC 25.055 allowing regular production of the BCU 14 gas development well, which if productive may be open to regular production within 3,000 feet of a well drilled to and completed in the same pool. The surface location of the proposed well is 111 feet from the south line and 1325 feet from the east line of Section 33, T7N, RlOW, SM. The proposed bottomhole location is 2051 feet from the south line and 243 feet from the east line of Section 33, T7N, RlOW, SM. The Commission has tentatively set a public hearing on this application for June 29, 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 June 15,2004. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call (907) 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501 Written protests or comments must be received no later than June 21, 2004 except that if the Commission decides to hold a public hearing, written protests or comments must be received no later than the conclusion of the June 29, 2004 hearing. If you are a person with a d~ . lit who may need special accommodations in order to comment or to attend the pfbþe aring, please c ntact Jody Colombie at (907) 793-1221 no1aterthan~.. , Jolnyi<.Jjórman, . ~ka Oil and Gas Conservation Commission Published: May 20, 2004 ADN: AO 02414038 RE: Notice ....'" "-" Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 167418 Publication Date(s): May 20, 2004 Your Reference or PO#: 02414038 Cost of Legal Notice: $181.04 Additional Charges Web link: E-Mail Link: Bolding: Total Cost to Place Legal Notice: $181.04 Ad Will Appear on the web, www.adn.com: XXXX Ad Will Not Appear on the web, www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: lega1ads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 ---------- From: Jody Colombie Sent: Wednesday, May 19, 20048:38 AM To: legalads Subject: Notice «File: Beaver Creek Unit#14.doc»«File: Ad Order form.doc» Please publish the attached notice on May 20, 2004. lody Colombie 1 of 1 5/20/2004 8:20 AM ,-., ~ Anchorage Daily News Affidavit of Publication 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 167418 OS/20/2004 02414038 STOF0330 $181.04 $181.04 $0.00 $0.00 $0.00 $0.00 $0.00 $181.04 ~-~-~~-~-- STATE OF ALASKA THIRD JUDICIAL DISTRICT That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Notlce,Qf,Public .,5TAnH'F ALA5KA ,t 'Alaska Oil and .GasConservatlon Comml~siøn Re: Theápplication of Marathon Oil Companv (MaC) for a spaCing exception to allow the driUing andÞroduction of the Beaver Creek Unit No. 14 (BCU 14) gas development well in accordance with 20 AAC 25.055. MOC bv letter datedMav 12, 201)4 and received ,by the Alaska Oil and Gas Conservation CommiSsion ("Commi~sion") on Mav 13,2004, has requested the Commission to issue an order in conformance with 20 AAC 25.055a1lQwing regular prQductiQn Qf the BCU 14 gaSdèvÍ!IQ])l11ent well, which if produc,ivit mav be Qpen to rÍ!l!ular production within 3,000 feet of a welfdrilledto ane¡ completed:inJhe.,sQrne 'iX)ol', The surfaê'e Iòcation of the propo~edwell i~'I11 feetfròm the south line and 1325 feet from the east line of Section 33, T7N, Rl0W, SM. The proposed bottomhole location is 2051 feet fromthe~outh"in~ and 243 feet from the:east line of Secti()n'33tT7N'i R10W, SM. Kimberly Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. .tl\1 (({rfr. \\"IIto., ¡¡: S. () ~ " ~r:."", ~""~ \: O. --- . "".I r ~q:: ~OTAFlj;.-:--:~ :::. --'" - ::: . ÞuBuC . ~ ~$:, '.~ .-./;: 1I~ -' ~'~^- "V:,,\' -:'.. '.:~OfÞ/ ."~':y ~ . .....' ~," /.:.'.:.' ibnE.~tef>~~\'\ :/JJJJJJJ)}ìì' The Commission has tentativelv set a public hear- ing on this application for June 29, 2004 at 9:00 al1'\ at the Alaska Oil and Gas,Conservation:ColY\frlis- sionat333 We~t 7t,h Avenue, Suite 100, Anchorage, Alaská 99501. A persQn mav requestlhat the tenta- tivelv scheduled hearing be held bv filinl! a writ- ten request with the CommissiQn nQ later than4:~P pÍl1QnJune15,.2oo4. ' ':.' ", If a reqUest for a hearing is nottirnelv ,filed,' the Commission mav consider the is~uance of an Qr- der Without a hearing. To learn if the Commission 'wiU"h'old the public hearing, please call (907) .793'1,221, -~. ",,"À W" ,-:-c,.., - --~c,~Y} In addhio~;-'d'í:{ersò'n maysubmifw;'; mentS regQJ!:IingtÞi,s. !jppliça!iQ9 to, the ,I and 'Gas!:GnsètVøtiQn CommlsslQPQI ,~33 W!!st 7th Avenue, Suite 100, AnchQrag!!,AlaSk(99~91 writ, ten protests or comments must be re,celv!!d nQ later than June 21, 2004 except th(t if the Commis- sion decides to hold a public hearing, written prQ, tests or comments must be reèeiV!!d no later than the conciusiooof th!'. Jun,e 29, 2004 hearinl!. If voU are a person with a disability who may need sPecial accommodations.in order tQ cQmmento,r to att!!ndfM publiê hearing, pl!!aseç,ontaQjtJQdYGo, lórnl)ie át (907) 793-1221 nOlat!!r than June 21, 2004. John K. Norman, Chair Alaska Oil and Gas Conservatiø"CQmmission Si~oo ;¿ Jdt !. jj f Subscribed and Ø¥,;e this date, Notary Public in and for the State of Alaska. Third Division. Anchorage, Alas~ /~ ~ MY COMMISSION EXPIRE: 6/~{../S' t' ADN:AO02414038 c Publish: May 20, 2004 RECE\VED JUN 02 'LüG4 ", \f"\>«"í()!\ A\aSKa Qi\ & Gas Con:;. ~ol1 _H "" " ~nchOfalJe STATE OF ALASKA ADVERTISING ORDER ~ NOTICE TO PUBLISHER r"\ ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., v¿RTIFIED AO 02414038 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF - ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue, Suite 100 0 Anchorage, AK 99501 M 907-793-1221 AGENCY CONTACT DATE OF A.O. lody Co1ombie May 19, ?-004 PHOI'JE PCN (907) 793 -1 ??1 DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 May 20, 2004 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION 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 2004, and thereafter for - consecutive days, the last publication appearing on the - day of , 2004, 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 2004, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER Beaver Creek #14 " ------ ~\ Beaver_Creek - Unit#14.doc Content-Type: applicationlmsword Content-Encoding: base64 lof2 5/19/2004 8:40 AM Notice ~ ~ Please publish on-line. Beaver_Creek - Unit#14.doc Content-Type: applicationlmsword Content-Encoding: base64 1 of 1 5/19/20048:40 AM Notice , e--... /"'\ Please publish the attached notice on May 20, 2004. Jody Colombie Beaver Creek Unit#14.doc Content-Type: applicationlmsword I Content-Encoding: base64 ' ......-......-..-....-..---.- .-......- Ad Order Content-Type: applicationlmsword Content-Encoding: base64 1 of 1 5/19/2004 8:40 AM 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 Ciri Land Department PO Box 93330 Anchorage, AK 99503 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 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 .-..... 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 Vacter Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 /"""\ 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, ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 /1)19 J 'j e-¿ ~Ó /ð L/ 1 " --.., Alaska B"'-"9SS Unit Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 May 12,2004 Mr. Robert Crandall Alaska Oil and Gas Conservation Commission 333 West th Avenue, #100 Anchorage, AK 99501-3539 RECFI\/t:f) MAY 1 3 2004 RE: Location Exception Application Marathon Oil Company Beaver Creek Unit Well #14 Kenai Peninsula Borough, Alaska Alaska Oil & Gas Cons. l.ommlssion Anchorage Dear Mr. Crandall: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: Ill' FSL & 1325' FEL, Section 33, T7N, R10W, S.M. Target: Multiple Lower Beluga Gas Reservoirs between 6855' and 8490' TVD. Top Lower Beluga Formation Estimate @ 6855' TVD, 7554' MD 2051' FSL & 243' FEL, Section 33, T7N, R10W, S.M. Bottom Hole: Estimate @ 8490' TVD, 9194' MD 2051' FSL & 243' FEL, Section 33, T7N, R1ûW, S.M. Down hole reservoir pressure data acquired in Well BCU # 13 demonstrates that at 160 acre well spacing (3000' well radius) numerous Lower Beluga reservoirs show no pressure depletion. Beluga reservoirs are highly laterally discontinuous and will require a smaller drainage area for efficient gas recovery. The target and bottom hole location is approximately 1650' from Lower Beluga producing zones in Well BCU #9. However, at this location it is anticipated that Well BCU #14 will encounter several undepleted reservoirs which will be perforated for completion and production. A standard open hole logging suite (including RFT pressure measurement) will be acquired in this well to verify reservoir quality, fluid saturation and pressure. Attached is a plat showing the BCU surface locations, well paths and top of Lower Beluga cut points. Also attached is a pre-drill directional survey for Well BCU #14. Furthermore, the parties listed on Exhibit "A" are entitled to notice of this application and have been duly notified. Environmentally aware for the long run. ~. ..-.. Mr. Robert Crandall Alaska Oil and Gas Conservation Commission May 12,2004 Page 2 Should you have any questions regarding the technical aspects of this application, please contact Bob Lanz at (907) 564-6427. (r~ ~~Ck Riddle Land Manager Attachments Name Cook Inlet Region, Inc. U.S. Dept. of the Interior Bureau of Land Management ,~ Exhibit "A" r~ Beaver Creek Unit Well #14 Location Notification List Attention Land Manager Greg Noble Address PO Box 93330 6881 Abbott Loop Rd. City Anchorage Anchorage State AK AK Zip 99509-3300 99507-2591 /~ /""" AFFIDAVIT Comes now J. Brock Riddle, and first being duly sworn upon his oath, states and deposes as follows: 1. That I am a legal resident of Anchorage, Alaska over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past seven years I have worked in Alaska for Marathon Oil Company (MOC) as Land Manager. 4. That I have assisted in preparing a notification list for a Location Exception application for the Beaver Creek Unit #14 well with a surface location in Section 33-7N-I0W and bottom hole location in Section 33-7N-I0W. 5. That on or about May 12,2004 MaC employees mailed notice of the Beaver Creek Unit 14 Well Location Exception application to all of the mineral owners within a 3000' radius of the proposed well location by certified mail, return receipt requested. I have attached a list of these mineral owners to this affidavit as Exhibit "A". The postal return receipts will be made available for inspection by proper parties. I believe that we have mailed the notice letters to good current addresses In view of the foregoing facts, affiant herein states and deposes that Marathon Oil Company as operator of the proposed Beaver Creek Unit #14 well has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. ¡;t . Ie (Affiant) fYìCLvy )J-¡ ~UO~ Date 0 STATE OF ALASKA ) )ss. ) THIRD JUDICIAL DISTRICT This certifies that on May 102 }~ 2004, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared J. Brock Riddle, Attorney-In-Fact, Marathon Oil Company, known to me to be the person described in, and who executed the foregoing agreement, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. _"q'rm".. ,"',:'\\II\I"'¡;¡;I/II/- "';~":~'¡..L J 2, ~/~ '.,i~~4;'~~v ......:.. ~I!:..~~.. ,'~'" ".' '. ~"" ~.,... '. _.~ §if'. ",:..., "" ~ ~ "';$<'~ .1":::::; ~ f NOTARY\ ~ ;; ~ PUBLIC: .:::: '~~ ". .: ~~ ,~ ". .'.... :;::: ~tP/'.'" ..,~ ~ :æ.. ~l'¡:""",""....c:, ~ ~ c: OF ";'\:T'~ VIllI/111m II\\\\\\~ =Kcu~~. O~~.Oo~ NOTAR&r' PUBLIC a~r Alaska My Commission Ex ires: 10 - 9-;1005 ,. /", Alaska B~ess Unit ,# Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 Fax 907/564-6489 May 18, 2004 Mr. Bob Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 VIA CERTIFIED MAIL RE: Location Exception Application Marathon Oil Company: Beaver Creek Unit Well #14 Kenai Peninsula Borough, Alaska Dear Bob: The parties listed on Exhibit "A" of the Location Exception Application for the above well have been notified. Attached are copes of the Green Cards showing that the individuals listed on Exhibit "A" did receive notification of the referenced application. Please call me at 564-6401 if you have any questions. Best regards, cf(~~ Kaynell Zeman Technical Assistant CERTIFIED MAIL 7002 3150 0005 7085 7273 Attachments RECEIVED MAY 1 9 2004 Alaska Oil & Gas (,on:;, ..,,¡¡¡¡mission Anchorage Environmentally aware for the long run. þ ~, ----, þ Exhibit "A" Beaver Creek Unit Well #14 Location Notification List Name Cook Inlet Region, Inc. U.S. Dept. of the Interior Bureau of Land Management Attention Land Manager Greg Noble Address PO Box 93330 6881 Abbott Loop Rd. City Anchorage Anchorage State AK AK Zip 99509-3300 99507-2591 a- a- (]:I lLI (]:I a- lLI ..D a- a- (]:I lLI (]:I a- ru ru