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CO 532 A
• Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. C ~ ~~ Order File Identifier Organizing (done) RESCAN ^ Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: NOTES: Re,~a~~e~ea Illllllll~lllllll OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: ^ Other:: BY: ~ Maria Date: ~ ~ I ~ ((J / t,~ ~ lsl ~'~ Project Proofing BY: Maria Date: ~~ Q i III II IIII I I III I I III /s/ Scanning Preparation BY ~,~.,,de,, iiuu~iiiuuuii DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: x30=r Date: 1 2 + =TOTAL PAGES ~ 3 (Count does not include cover sheet) ~ 0 ~ /s/ I/1 Production Scanning III IIIIIIIIIII II III Stage 7 Page Count from Scanned File: I Q ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: _~YES NO BY: Maria Date: l< ~I ~~ ~ ~ / /s/ Stage 7 If NO in sta e 1 a e s discr / ~~ 9 , p g () epancles were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. II I II'I ~I I II II I I III ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked III Ililll III IIII III 10/6/2005 Orders File Cover Page.doc L • INDEX CONSERVATION ORDER NO. 532A West Foreland #2 1. June 8, 2007 Forest Oil's application for either and extension of Temporary well spacing exemption or conversion to a permanent spacing exception for the West Foreland #2 well 2. June 11, 2007 Letter to Forest Oil regarding request 3. June 11, 2007 e-mail to Commissioner re: informal conference 4. June 11, 2007 Response from operator re: 6/11/07 letter 5. June 12, 2007 Sign in sheet for informal review 6. June 13, 2007 Letter from Commission to Operator re: informal review 7. June 13, 2007 Response from operator to letter 6/13/2007 8. June 14, 2007 Notice of Hearing, Affidavit of publication, a-mail Distribution list, bulk mailing 9.July 11, 2007 Email from Forest and our response 10. July 16, 2007 Memo to file on which parties were contacted re: hearing continuation 11. July 16, 2007 Forest Oil submission of Letters of non-objection from DNRBLM; evidence that notice was given to all interested parties and technical analysis for WF #2 well (Confidential Information locate in vault) 12. July 16, 2007 e-mail from operator 13. July 24-25, 2007 Transcript, Exhibits and Sign-In Sheet 14. August 8, 2007 Commissioner Seamount's recusal 15. August 8, 2007 Forest Oil's request for either a conversion to a permanent spacing exception or an extension of a temporary well spacing exception for the West Foreland #2 well 16. August 21, 2007 Note to File 17. August 27, 2007 E-mail from Parties Conservation Order No. 532A r • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL ) CORPORATION for an order granting an ) extension of the temporary exception to the ) spacing requirements of 20 AAC 2S.OSS to ) allow for the continued operation of the West ) Foreland No. 2 gas production well. ) Conservation Order No. S32A West Foreland No. 2 West Foreland Undefined Gas Pool August 9, 2007 ORDER CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. DATED AND EFFECTIVE at Anchorage, Alaska and this 9"' day of August, 2007. BY DIRECTION OF THE COMMISSION the Commission • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL ) CORPORATION for an order granting an ) extension of the temporary exception to the ) spacing requirements of 20 AAC 25.055 to ) allow for the continued operation of the West ) Foreland No. 2 gas production well. ) Conservation Order No. 532A West Foreland No. 2 West Foreland Undefined Gas Pool August 9, 2007 IT APPEARING THAT: 1. Forest Oil Corporation ("Forest"), by letter dated June 8, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") that same day, requests a temporary extension of the exception to the well spacing provisions of 20 AAC 25.055. The initial temporary extension was authorized in Conservation Order No. 532 ("CO 532") to allow for continued operation of the West Foreland No. 2 gas production well ("WF #2"), which is closer than 1500' to a property line and within the same governmental section as, and less than 3000' from, a well capable of producing from the same gas pool. Forest further requested that should the Commission determine a hearing is required prior to approving its extension request, then the Commission allow consideration of a request by Forest to convert the initial temporary spacing exception to a permanent spacing exception. 2. By letter dated June 11, 2007 and hand-delivered to Forest that same day, the Commission notified Forest concerning its non-compliance with certain provisions of CO 532 relating to WF #2 and instructed Forest to shut in production from the well. 3. On June 11, 2007, Forest requested an informal conference, which was held at the Commission on June 12, 2007. At the informal conference, Forest represented that shutting in WF #2 might damage the reservoir. 4. Based on Forest's representations at the informal conference, in a letter that was hand- delivered to Forest on June 13, 2007, the Commission: a. cancelled the directive to shut in production at WF #2. b. scheduled a public hearing at the Commission at 9:00 a.m. on July 24, 2007 to consider Forest's application (i) for an extension of the temporary spacing exception granted in CO 532, or (ii) alternatively, to make this exception permanent; c. required that, by July 16, 2007, Forest provide the Commission (i) a letter of non- objection, signed by the State of Alaska Department of Natural Resources ("DNR") and the United States Department of Interior, Bureau of Land Management ("BLM"), to Forest's application, and (ii) evidence that notice of Forest's application and the Conservation Order 532A • Page 2 August 9, 2007 hearing notice were sent to all interested parties, including all royalty owners and overriding royalty interest owners ("ORIOs"); and d. required that, by July 16, 2007, Forest provide the Commission all technical analyses for the affected reservoir that Forest provided DNR and BLM in connection with a tentative compensatory royalty agreement to govern the allocation of production form WF #2. 5. Notice of opportunity for public hearing was published in the Anchorage Daily News on June 15, 2007, pursuant to 20 AAC 25.540. 6. On July16, 2007, Forest submitted a letter of non-objection, signed by DNR and BLM, and evidence that notice of Forest's application and the June 15, 2007 public notice were sent to all interested parties, including all royalty and overriding-royalty owners. Forest also submitted a technical analysis for the affected reservoir. 7. On July16, 2007, the Commission notified Forest, DNR, BLM and Cook Inlet Region, Inc. ("CIRI"), another interested party, that the public hearing scheduled for July 24, 2007 would be continued on July 25, 2007. 8. At 9:00 a.m. on July 24, 2007, the Commission convened the public hearing and continued it until 9:00 a.m. on July 25, 2007. 9. At 9:00 a.m. on July 25, 2007, representatives from Forest and DNR and one ORIO attended the hearing. The hearing was held in conformance with 20 AAC 25.540. At the hearing, Forest did not pursue their request that the temporary spacing exception be converted into a permanent exception. FINDINGS: 1. The record for this order includes the Commission's well and production records for WF #2, the record for Conservation Orders 450, 450-A, 450B and 532, and the other documents identified above. 2. WF #2 is a deviated, gas production well that was completed on December 11, 2004. The surface location of the well is onshore, 886' from the south line and 571' from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well lies offshore beneath the western side of the Cook Inlet, 760' from the north line and 1,146' from the east line of Section 21, T08N, R14W, SM. 3. WF #2 lies entirely within Section 21, T08N, R14W, SM, which also contains the existing West Foreland #1 ("WF #1") gas production well. 4. The affected leases are onshore Federal Lease A-035017 and offshore State of Alaska Lease ADL-359112. 5. The landowners of Federal Lease A-035017 are Cook Inlet Region, Inc. ("CIRI") and the U.S. Government. BLM administers Federal Lease A-035017 on behalf of CIRI. The State of Alaska is the landowner of Lease ADL-359112. DNR administers State Lease ADL-359112. In addition to the landowners, there are numerous ORIOs. Conservation Order 532A ~ • August 9, 2007 Page 3 6. Forest is the sole working interest owner of both leases for the affected reservoir sands. 7. The surface location for WF #2 is within Federal Lease A-035017. The well is perforated in two gas-bearing sands that occur between the measured depths from 8494' to 8525' (herein termed as the "8500-foot sand") and from 10,371' to 10,383' (herein termed the "9200-foot sand"). 8. In WF #2, the top of the 8500-foot sand lies onshore within Federal Lease A-035017, about 85' west of the property boundary with State Lease ADL-359112. The top of the 9200-foot sand lies offshore within State Lease ADL-359112, approximately 250' east of the property boundary with Federal Lease A-035017. 9. Forest has equipped WF #2 with a dual completion to allow gas production from the 8500- foot and 9200-foot sands. Production from the 8500-foot sand began in December, 2004, and production from the 9200-foot sand began in April, 2005. WF #2 is producing gas from both sand intervals. 10. WF #2 and nearby gas production well WF #1 produce from the 9200-foot sand at take points that are less than 3000' apart and within the same governmental section. 11. The 8500-foot sand producing in WF #2 is not gas-bearing in WF #1. WF #1 also produces gas from a deeper sand, herein termed the "9400-foot sand." The 9400-foot sand is not productive in WF #2. 12. Due to non-compliant spacing, the Commission issued CO 532, a temporary spacing exception that authorized drilling and initial gas production from the WF #2 well from any interval not stratigraphically deeper than the 9400-foot sand. CO 532 was issued on September 16, 2004, and it expired June 12, 2007, which was 30 months after Forest completed WF #2. 13. Forest testified that, in compliance with CO 532, it established and funded an escrow account to protect the interests of all royalty owners and ORIOs. 14. Forest testified that it is working with DNR and BLM to establish a royalty sharing agreement. Forest also testified that a draft royalty sharing agreement was provided to BLM and DNR on February 1, 2007, and Forest received the first comments on that draft agreement from BLM and DNR during the week of July 16, 2007. According to Forest, DNR and BLM have primarily suggested grammatical changes and changes to make provisions more consistent: not changes to the proposed allocation of production. 15. In the July 16, 2007 letter of non-objection, DNR and BLM consent to the application of Forest for an extension of the temporary spacing exception to allow the WF #2 well to continue to operate under terms imposed by the Commission. 16. At the July 25, 2007 hearing, Forest requested a 6-month extension of the temporary spacing exception. Forest testified that it anticipates being back before the Commission before the expiration of the six-month extension period to request that the extension of the temporary spacing exception be converted to a permanent spacing exception. 17. At the July 25, 2007 hearing, an ORIO for WF #2 requested the expeditious resolution of this matter and disbursement of the escrowed funds. Conservation Order 532A • Page 4 CONCLUSIONS: August 9, 2007 1. An extension of the spacing exception authorized by CO 532 is necessary to allow for the continued operation of WF #2. 2. Granting an extension of the spacing exception will not likely result in waste, adversely affect ultimate recovery, or impair the correlative rights of persons owning interests in the tracts of land affected. 3. Although Forest requested in its June 8, 2007 letter that the Commission consider granting a permanent spacing exception, Forest did not follow up on this request. Therefore a permanent spacing exception is not warranted at this time. In addition, a permanent exception is not now warranted because a royalty sharing agreement has not been completed. 4. Forest, BLM and DNR have taken an unduly long time to complete the allegedly uncontested royalty sharing agreement. 5. Because Forest is receiving the full benefit of production from WF #2, there is no incentive for Forest to complete the royalty sharing agreement. 6. Although royalty payments are held in escrow for all parties except Forest, these parties are currently receiving no benefit from WF #2 production. 7. A single, six-month extension will be more than sufficient to allow Forest, DNR and BLM to finalize a royalty sharing agreement and disburse the escrowed funds. 8. Three months is more than sufficient time for Forest to submit a complete application, including all supporting documentation, for a permanent spacing exception for WF #2. NOW, THEREFORE, IT IS ORDERED: The Commission grants Forest's application for an extension of the temporary spacing exception to allow continued gas production from the WF #2 well from any interval not stratigraphically deeper than the 9400-foot sand. This extension is not renewable. This extension expires on February 1, 2008. If Forest, or any successor operating company, desires to apply to the Commission for a permanent spacing exception for WF #2, that application and all supporting documentation must be received by the Commission no later than 4:30 p.m. on November 1, 2007, to ensure that there is enough time for the Commission to process the application in an orderly manner. Conservation Order 532A • ~ August 9, 2007 Page 5 Unless the Commission authorizes a permanent spacing exception for WF #2 by February 1, 2008, then before February 2, 2008, Forest, or any successor operating company, shall shut in WF #2. At the time of the shut-in, Forest shall notify the Commission so that a Commission field inspector can verify the shut-in status,,gf the well. DONE at A~,r~ge, Alaska and dated August~007 ~,~..~~ u~ ~l~ a . ~. ::. ~F~t -~ .4 T~~ ; f,~ '. Gas Cons~TP~fion Commission _i~~i~-- Cathy P Foerster, Commissioner Alaska it 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., 10th day after the application for rehearing was filed). . • Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, August 09, 2007 11:41 AM To: McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov)'; 'Aleutians East Borough'; 'Anna Raft; 'Arthur C Saltmarsh'; 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Fowler'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Christine Hansen'; 'Cliff Posey'; 'Cody Rice'; 'Dan Bross'; 'daps'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; 'Julie Houle'; 'Karl Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mike) Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; 'rmclean'; 'Robert Campbell'; 'Roger Belman'; 'Rosanne M. Jacobsen'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamers Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'Tricia Waggoner'; 'trmjr1'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Subject: CO 532A West Foreland #2 Attachments: CO 532A.pdf 8/9/2007 Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department (~ / PO Box 129 l/ Barrow, AK 99723 3 ' ~ ~ ,,, I C~ ~ ~~~JJJ ,r X17 • • Colombie, Jody J (DOA) From: Melissa_Ainsworth@ak.blm.gov Sent: Monday; August 27, 2007 9:41 AM To: Jim Arlington Cc: Greg_Noble@blm.gov; Colombie, Jody J (DOA); Norman, John K (DOA); Kim Cunningham; Leonard Gurule; Larry Casarta; Paul Winslow; Davidson, Temple (DNR); Evvie_Garis@ak.blm.gov Subject: RE: West Foreland #2 Escrow Agreement with Bank Jim, I believe there was a miss understanding regarding Greg's review. I just indicated that Greg was back in the office and that I had forwarded him the changes that were submitted to the Solicitor's office. I don't believe I gave a time frame as to when Greg would be reviewing the changes I sent to the Solicitor. You are correct in that I can not give you a time frame for when the BLM will have an executable version of the document. I don't want to provide an estimated time frame and be incorrect. As we have spoken of in past conversations, this remains a priority for the BLM. I will keep you updated as changes occur. If you have any further questions please feel free to contact me at 907-267-1212. Thank you, /s/ Melissa Ainsworth Mineral Law Specialist NIAFMSS Local User Support Bureau of Land Management- Alaska 907-267-1212, 907-271-5718 phone 907-267-1304 fax melissa ainsworth@ak.blm.gov "Jim Arlington" <JDArlington@fore stoil.com> 08/24/2007 08:23 PM To <Melissa Ainsworth@ak.blm.gov> cc "Temple Davidson \(E-mail\)" <td@dnr.state.ak.us>, "Kim Cunningham" <KCunningham@ciri.com>, "AOGCC Chairman John Norman" <john norman@admin.state.ak.us>, <Jody_colombie@admin.state.ak.us>, "Leonard Gurule" <LCGurule@forestoil.com>, "Larry Casarta" <LJCasarta@forestoil.com>, "Paul Winslow" <PMWinslow@forestoil.com>, <Greg Noble@blm.gov> Subject RE: West Foreland #2 Escrow Agreement with Bank • • Melissa, I understand from our conversation yesterday that Pricilla Botkin with the Minerals Management Service now has the information she was seeking in the West Foreland #2 Well Invested Escrow Agreement between Forest Alaska Operating LLC (successor to Forest Oil Corporation) and First National Bank Alaska. I also understand from talking with you yesterday that you have forwarded the marked-up version of the Royalty Sharing Agreement ("RSA") you received last month from the Alaska Department of Natural Resources to the US Solicitor's office, with additional revisions from the BLM-Alaska office, for his review and approval of the RSA for execution. As you know, I have not seen that version of the RSA and have only seen one revised version of the RSA, the one which was sent to me last month and whose revisions I approved, since I sent the original RSA I drafted to you and Temple on February 1st. You indicated to me in our conversation yesterday that Greg Noble would be able to review the current version of the RSA in the hands of the US Solicitor by the end of business today and call me if there were any further questions or a request for additional information in order to complete the BLM's review and approval of the RSA. I have not heard from Greg or you since our last phone conversation, so it is now my understanding that all that remains in the process of approving the RSA for execution by all parties is approval from the US Solicitor. If my understanding is incorrect, please let me know at your earliest convenience what additional steps remain and your estimation of when they will be competed. As it stands now, you indicated that you are not able to estimate a time when the US Solicitor will complete his review of the RSA and provide approval to your office to execute the RSA. You should know that I received a call from Jody Colombie with the AOGCC on Tuesday this week to inform me that the AOGCC will not schedule a hearing to consider Forest's application for a permanent spacing exception for the WF #2 well until they receive the executed RSA. As I indicated to you during our phone conversation yesterday, I will be out of the office all next week. I look forward to talking to you when I return on Tuesday, September 4th and learning that the RSA is ready for execution. Have a safe and happy Labor Day Holiday! Best regards, Jim -----Original Message----- From: Melissa_Ainsworth@ak.blm.gov (mailto:Melissa Ainsworth@ak.blm.gov] Sent: Friday, August 17, 2007 1:23 PM To: Jim Arlington Cc: Bill_Diel@ak.blm.gov; Pricilla_Botkin%MMS@blm.gov Subject: West Foreland #2 Escrow Agreement with Bank Jim: Per our phone conversation, could you please provide Pricilla Botkin, Minerals Management Service with a copy of the West Foreland #2 Escrow Agreement between Forest and the Bank. Her fax number is 303-231-3707 or 303-231-3107 Thank you, /s/ Melissa Ainsworth Mineral Law Specialist NIAFMSS Local User Support Bureau of Land Management- Alaska 907-267-1212, 907-271-5718 phone 2 907-267-1304 fax • melissa ainsworth@ak.blm.gov X16 C MEMORANDUM • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION TO: File FROM: Jody Colombie ~ 1 ~, Special Assistant` DATE: August 21, 2007 SUBJECT: West Foreland #2 I spoke to Jim Arlington of Forest Oil this morning and informed him of the following. 1. The AOGCC Order stands. 2. That Forest Oil needs to submit the Royalty Sharing Agreement before we Notice their August Stn request for a hearing. 3. I informed him that once the AOGCC received this I would Notice their request for a hearing X15 • F O R E S T O I L C O R P O R A T I O N • .~~0 C>~~~~i~.et • nSu,~te X00 Y C~~iu~ar*at~~, C_?S~~a.s~,rr,, 9950/ • X907) X58-shoo ~ ~907~ X58-860 ~~saxJ August 8, 2007 RECEIVE D AUG 0 8 2007 Alaska Oil & Gas Cons. Commission Mr. John Norman, Chair Hand-Delivered Anchorage Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Application for either a conversion to a Permanent Spacing Exception or, alternatively, an Extension of Temporary Well Spacing Exemption for the West Foreland #2 Well ("WF #2"); Conservation Order No. 532; West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: In order to accommodate scheduling requirements and in an effort to expedite disbursement of the escrowed funds established pursuant to Conservation Order No. 532, Forest hereby submits by this letter an application for the WF #2 well for a permanent spacing exception to the provisions of 20 AAC 25.055 or, alternatively, an additional extension of the temporary exemption requested by Forest in its June 8, 2007 application. Forest wishes to advise that while the landowners have yet to approve a Royalty Sharing Agreement ("RSA"), the RSA submitted by Forest on February 1, 2007, and returned on July 17, 2007 as a pdf marked up by both BLM and DNR, is wholly acceptable to Forest. Forest understands that it has provided the BLM and DNR all information requested by either party to complete the RSA. Forest stands ready to provide any other information necessary to facilitate timely completion and execution of the RSA by all parties and any additional data the AOGCC deems necessary to approve disbursement of the escrowed funds to the royalty owners. If there are any questions, or should you need additional information, concerning this application please contact me at (907) 868-2112. Sincerely yours, FOREST OIL CORPORATION Jim Arlington Land Manager cc: Cook Inlet Region, Inc. Bureau of Land Management Alaska Department of Natural Resources, Division of Oil & Gas Page 1 of 1 X14 ~ • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL CORPORATION for an order granting an Temporary well spacing exemption or conversion to a permanent spacing exception for the West Foreland #2 Well. Conservation Order No. 532A ) West Foreland Field West Foreland Undefined Gas Pool ) June 8, 2007 Recusal from Decision Daniel T. Seamount, Jr., Commissioner hereby recused himself from the above entitled case. August 8, 2007 Date x#13 l~ 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • C ~ ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: John K. Norman, Chairman Daniel T. Seamount Cathy Foerster In the Matter of the Application ) of FOREST OIL CORPORATION for an ) Extension of Temporary Well Spacing ) Exemption or Alternatively ) Conversion to a Permanent Spacing ) Exception for the West Foreland #2 ) Gas Production Well Bore in ) Accordance with the Drilling Unit ) and Spacing requirements of ) 20 AAC 25.055 and the requirements } of Conservation Order 532 ) ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska VOLUME I PUBLIC HEARING July 24, 2007 - Page 02 through 04 July 25, 2007 - Page 05 through 20 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 41 5~ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • • TABLE OF CONTENTS Opening remarks by Chairman Norman Testimony by James Arlington R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 07 08 1 • • 1 21 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PUBLIC HEARING (TO BE CONTINUED) July 24, 2007 9:00 o'clock a.m. BEFORE: Cathy Foerster, Commissioner R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 • ~ l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S Tape 1 0050 (On record - 9:00 a.m.) COMMISSIONER FOERSTER: All right. I would call this meeting to order. The date is July 25th, 2007. It's approximately 9:00 a.m..... MS. COLOMBIE: 24th. COURT REPORTER: 24th. COMMISSIONER FOERSTER: 24th, man I can't read anyway. Approximately -- July 24th, 2007 9:00 a.m. and this hearing is being held in the offices of the Alaska Oil and Gas Conservation Commission located at 333 West 7th Avenue, Suite 100, Anchorage, Alaska. R & R Court Reporting is recording the proceedings. And as I look around I find that we do not have a quorum as I am the only Commissioner present. Neither Commissioner Seamount nor Chairman Norman is able to be here today. This hearing has the purpose of reviewing the Application of Forest Oil Corporation for an Extension of Temporary Well Spacing Exemption or alternatively for Permanent Conversion -- conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 1 However, since we do not have a quorum we will have to 2 continued this meeting until tomorrow. So if neither one of my 3 absent cohorts has anything to add, than I will call this 4 meeting adjourned. 5 (Off Record - 9:03 a.m.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-05721Fax 274-8982 ANCHORAGE, ALASKA 99501 4 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 PIIBLIC HEARING BEFORE: John K. Norman, Chairman Cathy Foerster, Commissioner July 25th, 2007 10:00 o'clock a.m. R& R C O U R T R E P O R T E R S 811 G STREET <907)277-05721Fax 274-8982 ANCHORAGE, ALASKA 99501 • • 1 2 Tape 1 3 0015 4 5 6 7 8 9 10 11 12 13 14 I 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S (On record - 10:00 a.m.) CHAIRMAN NORMAN: Good morning. I'll call these proceedings to order. This matter comes before the Commission upon an Application filed by Forest Oil Corporation for an Extension of the Temporary Well Spacing Exemption or alternatively for a Permanent Spacing Exception and this is applicable to Forest -- or correction, applicable to West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of Commission regulations found at 20 AAC 25.055 and also the requirements of Commission Conservation Order 532. Present this morning are Commissioners Norman and Foerster. Commissioner Seamount is traveling. And also for the record Commissioner Seamount has recused himself on this matter. Notice of this hearing was published on June 15, 2007 in the Anchorage Daily News and on line notices were also published on the Alaska Oil & Gas Conservation Commission's web site. The proceeding this morning will be recorded and a transcript will be available to interested persons. The Court Reporter is R & R Court Reporting and you may contact R & R or R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Commission's special assistant should you require a copy of the proceedings. For purposes of Compliance with the Americans with Disabilities Act if there are any persons present wishing to participate in this morning's proceeding who may have a disability and require a special accommodation, please indicate to me now or during the course of the proceedings and we will make every effort to accommodate you to enable you to participate. Witnesses giving testimony will be sworn. Also if testimony is offered in the context of being an expert witness, witnesses will be asked to state their background and qualifications for the record. Commissioner Foerster, do you have any preliminary remarks? COMMISSIONER FOERSTER: Yes. Has everyone who is here signed in as a guest? Okay, great. And Ms. Smith in the back is sitting in for the usual assistant and so I just wanted to ask her, typically once we get a sign in a copy gets up to John and me so if you could do that for us, if you could get the sign in sheet and get us a copy, that would be great. Thanks. CHAIRMAN NORMAN: Okay. We'll proceed, Mr. Arlington. MR. ARLINGTON: Yes, sir. CHAIRMAN NORMAN: You're here for Forest Oil, are you ready to proceed? R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ARLINGTON: Yes, I am, Mr. Chairman. I guess I'd just like to go over a brief review of why we're here. As the Chairman briefly indicated Forest Oil has submitted an Application on June 8th to extend the temporary spacing exception (ph) that was granted by this Commission pursuant to Conservation Order number 532. That Conservation Order allowed us to produce gas from the West Foreland #2 well bore for a certain period of time. And provided certain requirements as far as the placement of funds that would otherwise have been paid to royalty owners and overriding royalty interest owners in an escrow account. Forest Oil has been producing the West Foreland #2 well since approximately December of 2004. .We've been placing funds in the escrow and been operating and producing the well pursuant to the Conservation Order Number 532. We had anticipated that there would have been an agreement reached by the landowners of the two leases from which the West Foreland #2 well is producing prior to the time period granted under the temporary spacing exception. That agreement is still in review by the landowners which brings us to the need to request an extension of six months for the temporary spacing exception granted under Conservation Order Number 532. We received, as you know, a letter from this Commission on the 13th of June directly Forest Oil to provided notice to the royalty owners of the application and of the reason for the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 8 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 application. We did that. The Commission was provided on July 16th copies of the certified mail receipts indicating that the notice was given to all the royalty owners and the overriding royalty interest owners. Also provided the Commission at that time, signed letters of non-objection from the landowners of the two leases from which the West Foreland #2 well is being produced, those being the Department of Natural Resources for the State of Alaska and the Bureau of Land Management for the Department of Interior. Those letters of non-objection indicate that the landowners, the lessors of the two leases support and approve of Forest Oils application for the extension or alternatively the granting of a Permanent Spacing Exception. At this time Forest is just asking for the extension of the Temporary Spacing Exception. We anticipate, as I indicated before, that the royalty sharing agreement which will stipulate the sharing and allocation of production between the two leases will be signed before the expiration of that six month period and we anticipate being back before the Commission at that time requesting the conversion or the granting of the Permanent Spacing Exception. With that, that concludes the testimony I am prepared to give right now .for the record and stand available for questions from the Commission. CHAIRMAN NORMAN: Thank you, Mr. Arlington. I see that R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 9 • • 1' 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1$ 19 20 21 22 23 24 25 there is a representative of the Division of Oil & Gas here. And is there a representative of the Bureau of Land Management present? COMMISSIONER FOERSTER: No. CHAIRMAN NORMAN: Okay. We do not see anyone asking to be recognized. The file does reflect, however as Mr. Arlington stated, that letters of non-objection, the letter being dated July 13th, 2007 received by the Commission on July 16th, 2007 signed for the BLM and a similar letter signed for the Division of Oil & Gas are in the file. Commissioner Foerster, any questions? COMMISSIONER FOERSTER: Yes, I have a few. First, could you tell me why the royalty sharing agreement is taking longer than you had originally anticipated to get signed? MR. ARLINGTON: I don't have any answer for that. I don't know. That would probably be more appropriately addressed to the BLM and DNR. I just received the end of last week the first redline version of the draft I had sent them on February 1. Forest has no objection to the changes that I have seen being proposed back and forth between the BLM and the DNR. COMMISSIONER FOERSTER: If you don't have any idea why there's a delay, what is your reas- -- what are your thoughts behind thinking that it's imminent? MR. ARLINGTON: Because of my review of the redline last week just indicates that it's primarily just clarification R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 • ~ 1 2 3'I 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 language, grammatical language, consistency between the different provisions in the agreement. There's no suggestions for changes involving the allocation of the production. It's primarily just procedural language in the agreement that is being discussed as I see it. COMMISSIONER FOERSTER: Okay. So you must think that you're going to get it comfortably before six months is up? MR. ARLINGTON: I do. COMMISSIONER FOERSTER: Okay. The last time you guys were in here for an informal review there was some confusion about your understanding of timeliness in requesting an exception or an extension to an exception and do you remember that discussion? MR. ARLINGTON: Yes, I do. COMMISSIONER FOERSTER: And do you remember my suggestion that for your own comfort especially in a situation where there might be contest that five or six months in advance might be the time to apply for an extension? MR. ARLINGTON: I recall that and my intent would be to file for a request for Permanent Spacing Exception after we're granted or presuming that we would be granted this temporary extension and file for the hearing for the permanent exception immediately. COMMISSIONER FOERSTER: Okay. So given that I suggested five or six months to file for an extension or an exception and R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 • ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 here you're asking for an extension of only six months, am I going to see you in another month asking for an another extension? You know, are we going to see paperwork from you in a month starting the process just in case? I'm concerned that six months may not be long enough. We don't want to be doing this -- you know, we love you to death, but we don't want to be seeing you that often. MR. ARLINGTON: I understand. If -- I firmly believe and I'm confident based on what I have seen in the language going back and forth that we should be able to reach an agreement among the parties, the landowners that we -- and have an executable agreement, you know, within the next couple months. Quite frankly I'm at a loss as to why it has taken as long as it has to come to an agreement on what was submitted, like I said, February 1. If the Commission thinks it would be best to grant us an extension for longer than six months given the time frame for scheduling a hearing, we would have no objection to that, but as I indicated my intent would be to file immediately for a hearing for the Permanent Spacing Exception and let the Commission schedule that and hopefully that will provide necessary incentive for the BLM and the State of Alaska to finally reach agreement on the executable version of the royalty sharing agreement. COMMISSIONER FOERSTER: Okay. Mr. Arlington, do you R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 • • 5~ 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 understand that given the process your company chose to follow on the original request for the exception waiting and, you know, requesting an unreasonably expedited process and the similar process you launched on this one as well, that it will be very, very unfavorably looked upon if we see you six months from now wringing your hands asking for another exception, do you understand that? MR. ARLINGTON: I do. If -- I'm welcome to whatever suggestions that you might provide. If your's -- if I hear you, you're saying that six months may not be an adequate length of time for an extension. COMMISSIONER FOERSTER: Okay. It's not our job to do your job. It's your..... MR. ARLINGTON: I under-..... COMMISSIONER FOERSTER: .....job to do your job. I'm just telling you that the way you've done it in the past on this incident -- on this instance is unacceptable and you need to figure out how to do your job in a way that this doesn't become a routine visitation with your company. In the letter that we sent to you guys on June 13 we made a couple of requests. One -- well, requirements. One was a requirement that on or before July 16th Forest provide the Commission, A, a letter of non-objection signed by DNR and BLM and you've done that. And, B, evidence that notice of Forest's application and R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 • • 1 2i 3 4 5 6 7 8 9 10 11 12 13 14 I 15 16 17 18 19 20 21 22 I 23 24 25 I the hearing was sent to all interested parties including all royalty and overriding royalty owners. I don't recall seeing that submission of that evidence, is that something you provided, was that..... MR. ARLINGTON: Yes, ma'am. I provided a copy of each certified mail receipt..... COMMISSIONER FOERSTER: Okay. MR. ARLINGTON: .....stamped by the Post Office..... COMMISSIONER FOERSTER: Okay. MR. ARLINGTON: .....for every single royalty owner and land owner and overriding royalty interest owner. COMMISSIONER FOERSTER: Okay. And the second requirement was that on or before July 16th Forest provide the Commission all technical analyses for the shallow producing reservoir, et cetera, et cetera, is that what this submission that you brought today is? MR. ARLINGTON: Yes, and that was provided at that time as well. COMMISSIONER FOERSTER: It was provided on the 16th. Mr. Roby, did you receive this on the 16th? MR. ROBY: (Indiscernible - away from microphone)..... COMMISSIONER FOERSTER: Mr. Davies, did you receive this on the 16th? MR. DAVIES: I haven't seen that (indiscernible - away from microphone)..... R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 • • 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER FOERSTER: You've never seen that. Neither one of our technical people has ever seen this. Okay, that's a problem. All right. That's all my questions. MR. ARLINGTON: Let me indicated that, that was included in the transmittal letter. If necessary I've got a stamped receipt from..... COMMISSIONER FOERSTER: So it -- it's an internal problem, perhaps, but..... MR. ARLINGTON: Yes, it..... COMMISSIONER FOERSTER: .....it is still a problem that our technical folks haven't seen it until today. MR. ARLINGTON: It was provided,..... COMMISSIONER FOERSTER: Okay, thank you. MR. ARLINGTON: .....Commissioner. COMMISSIONER FOERSTER: Okay, thank you. CHAIRMAN NORMAN: Anything more, Commissioner? COMMISSIONER FOERSTER: I'm done. CHAIRMAN NORMAN: Mr. Arlington, I think we went over this once before, but in the interval of time I wanted to have it in mind again. Conservation Order 532 that governs this right now. And the order number 4 calls for the establishment of an escrow account and the maintenance of an escrow account and the requirement is that no funds may be disbursed except by order of the Commission after Forest provides at least 30 days notice prior to all royalty owners in both leases, et cetera. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 • • l 21 3 4 5 6 7 8 9 10 11 Could you discuss and confirm for me again the status of that escrow account? It was my recollection from the conversation we had that that account remains in existence and that proceeds from any production are being placed in there? MR. ARLINGTON: Yes, Commissioner, the escrow account is with First National Bank Alaska. It's account number 80-8350-00 as..... CHAIRMAN NORMAN: Can you read that again slowly just so the Court Reporter can get it? First..... MR. ARLINGTON: Yes. CHAIRMAN NORMAN: .....National Bank escrow account 12 ~~ 80- .... . 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ARLINGTON: 8350-00. The statement that I have last from June 4 (ph), let's see, to June 30th is -- indicates that the market value of funds in the account is $1,975,720.44. CHAIRMAN NORMAN: And just a question concerning the account, does the escrow agent in this case First National Bank understand that they are not to release funds without being provided with an order of this Commission? MR. ARLINGTON: Yes, they have a copy of the Conservation Order which was made part of the directions to the bank in establishing the account. CHAIRMAN NORMAN: I don't believe at this time we have any further questions of you, Mr. Arlington. I should have placed you under Oath as we got into beyond testimony, questions as to R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • • fact on the Commission, so let me go ahead for the record now and do that now, please. Would you raise your right hand? (Oath Administered) MR. ARLINGTON: I do and all testimony I've given prior to this time complies with that statement. CHAIRMAN NORMAN: Thank you, Mr. Arlington. And if you would remain until the conclusion of these proceedings we would appreciate it in case we need to direct further questions to you. MR. ARLINGTON: Okay. Mr. Chairman, if I may there's another -- I just wanted to add for the record that in following up on Commissioner Forester's question as to the notice given to the royalty owners and overriding royalty interest owners my phone number and e-mail address was provided to all of the royalty owners. I received no response from anyone regarding the notice that was given or the information that was provided regarding the application for the extension of the spacing exception. COMMISSIONER FOERSTER: Thank you, that's good to know. CHAIRMAN NORMAN: Okay. Will Forest Oil have any further presentation? MR. ARLINGTON: No, Mr. Chairman. CHAIRMAN NORMAN: Do you have any additional questions then outside the scope -- for Forest outside the scope of R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 17 • • 1' ~I 2i 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 what..... COMMISSIONER FOERSTER: No (ph). CHAIRMAN NORMAN: All right. Then I'll ask, are there any other persons, first, any interested parties and I would take first if there is a representative of the Division of Oil and Gas and if they wish to be heard, we would hear from the State first? Okay. I don't hear any testimony and there's no need to give any. There is a statement in the file that is consistent with what Mr. Arlington testified to. And I previously asked if there's a representative of the Bureau of Land Management present and the Chair saw no one asking to be recognized. And, likewise, there is a statement of non-objection that's been filed by the Bureau of Land Management as Mr. Arlington represented. Are there representatives of any of the royalty owners or overriding royalty owners other than -- yes, ma'am, do you wish to offer any testimony or make any statement to the Commission? MS. SANDERS: No, I'd just like it to be completed and escrow funds disbursed (ph). CHAIRMAN NORMAN: Would -- could I ask you -- well, let me to save you coming forward, your -- you are..... MS. SANDERS: I'm Nola Sanders. CHAIRMAN NORMAN: .....Mrs. Nola Sanders? All right, very well. And I'll ask that your comment expressing concern that R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 18 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 this get resolved as soon as possible be noted in the record. And that certainly is consistent with what the Commission would like to see. Are there any other overriding royalty interest owners present that would like to say anything? The record should reflect the Chair sees no one asking to be recognized. I believe then that the matter at this point is submitted to the Commission as a request for a temporary -- an extension of the existing extension with the option to at some point apply to convert that to a permanent extension. And, Mr. Arlington, I think you expressed by your response to Commissioner Forester's question that if the Commission choose to try to allow a longer length of time, nine months or 12 months just to make sure that that gives everyone adequate time to complete this, that would not be objectionable to Forest? MR. ARLINGTON: That's correct, Mr. Chairman. CHAIRMAN NORMAN: Okay. And we're not suggesting anything that we would like to see it take longer, but we're simply saying that the next time it comes before us I believe everyone would like to see it finished and converted to a permanent extension so that then the parties can have the monies disbursed from the escrow account. MR. ARLINGTON: Yes. CHAIRMAN NORMAN: All right. I will ask if there are any R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 further matters referencing this proceeding to come before the Commission? Okay, seeing none and if there is no objection this matter will be adjourned at 9:25 a.m. COURT REPORTER: 10:25. COMMISSIONER FOERSTER: 10:25, thank you. CHAIRMAN NORMAN: 10:25, I'm sorry. 0755 (Recessed - 10:25 a.m.} R& R G OUR T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 C E R T I F I C A T E UNITED STATES OF AMERICA ) ss. STATE OF ALASKA ) I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R Court Reporters, Inc., do hereby certify: THAT the annexed and foregoing Public Hearing In the Matter of the Application of FOREST OIL CORPORATION for an Extension of Temporary Well Spacing Exemption or Alternatively Conversion to a Permanent Spacing Exception for the West Foreland #2 Gas Production Well Bore in Accordance with the Drilling Unit and Spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532, was taken by Suzan Olson on the 24th and 25th days of July, 2007, commencing at the hour of 9:00 a.m. and 10:00 a.m., at the Alaska Oil and Gas Conservation Commission, Anchorage, Alaska; THAT this Hearing Transcript, as heretofore annexed, is a true and correct transcription of the proceedings taken and transcribed by Suzan Olson; IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 31st day of July, 2007. Notary Public in and for Alaska My Commission Expires: 10/10/10 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 ~ 1 STATE OF ALASKA OIL AND GA5 CONSERVATION COMMISSION Forest Oil Corporation West Foreland #2 Well The application of Forest Oil Corporation ("Forest") for an Extension of Temporary Well Spacing Exemption or alternatively conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532. July 25, 2007 at 10:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) 3Sy ~7r~9 ~ ~~ C/4 ~i9 /' 70 2 -~ ~ - ~~S'9y ~~v~ RoBY ~40G~~ ~/y s • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Forest Oil Corporation West Foreland #2 Well The application of Forest Oil Corporation ("Forest") for an Extension of Temporary Well Spacing Exemption or alternatively conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532. July 24, 2007 at 9:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) f~n~~ ~'~~ S' °,~t'/`.~-- X12 • • Page 1 of 1 Colombie, Jody J (DOA) From: Jim Arlington [JDArlington@forestoil.com] Sent: Monday, July 16, 2007 4:57 PM To: Melissa_Ainsworth@ak.blm.gov; Davidson, Temple (DNR) Cc: Kim Cunningham; Norman, John K (DOA); Leonard Gurule; Colombie, Jody J (DOA) Subject: WF #2 well spacing exemption Attachments: Ssvcancmino07071615100.pdf Melissa & Temple, As you both requested, I have attached a copy of the le-tiers ofnon-objection signed by BhM and. DNR consenting to Forest's application for another temporary extension, or alternatively for a permanent exemption, to the drilling unit and spacing requirements of 20 AAC 25.055 to allow the WF #2 well to continue to operate under terms imposed by the AOGCC. As you will see, the copy attached shows receipt stamps 1:rom today from each of your agencies as well as the AOGCC. I ;have also attaeh.ed similar receipt stamped copies of Forest's transmittal letter to the AOGCC regarding the information the AOCrCC stipulated that Forest provide them in their letter to Forest dated June 13, 2007. You each should have received a call. today from Jodie Columbie with the AOGCC advising you that the hearing the AOUCC scheduled for July 24, 2007 regarding Forest's application wi l be continued to the following day, July 25th, at 10:00 a.m. since the AOGCC will not have a quorum of commissioners on the 24th for the hearing. I was advised that the hearing on the 24th will be convened but then immediately continued because oCthe lack. of a quorum. Jody told me that there is no need to be in attendance ~n the 24th since no testimony will be received then. Finally, I am still hopeful that we can have the Royalty Sharing Agreement for the WF #2 shallow zones executed by all parties prior to the hearing on July 25th. `T'o help expedite that, it would be helpful to be able to review as soon. as possible the revisions I understand that each of your agencies has made to the drafi I provided. you on February 1, 2007. To date, I have not seen. any revisions to the Iebruary 1 draft I prepared.. Il~you have any questions or concerns regarding the attached please call me at 868-21.12. 'THANKS. Jim. 7/17/2007 / • • o' ~' ° m July 16, 2007 C O R P O R A T I O N .~. ~iv~~ ~I/."~%~ ~>.S'-.SY(~/~ o ~)t~7~ .;'i S'-,Sfi'fii ~r''~~,r ~~~ r b zoo? Alaska 07 & Cos Gons. Commission AnchorarJe Mr. John Norman; Chairman Hand-Delivered Alaska Oil and Gas Conservation Convnission 333 W. 7°i Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Please find enclosed the following items, which were stipulated to be provided to the Alaska Oil and Gas Conservation Commission ("AOGCC") in its letter to Forest Oil Corporation ("Forest") dated June 13, 2007: 1. Letters ofnon-objection, originals signed by DNR & BLM on July 13, 2007, to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption from the spacing requirements of 20 AAC 25,055. 2. Evidence that notice of Forest's application and hearing was sent to all interested parties (postmarked copy of U.S. Postal Service certified mail receipts). 3. Forest's technical analysis for the WF #2 shallow gas producing reservoir at 8,500' (West Foreland #2, Reservoir Summary, dated 5-13-2007, containing 22 pages). Forest looks forward to meeting with the AOGCC during the hearing on Forest's application for an extension of the temporary spacing exception granted. pursuant to CO 532 or, alternatively, for a permanent exemption from the spacing requirements of 20 AAC 25.055, scheduled for July 24, 2007. Respectfial y yours, FOREST OTL CORPORATION ` ~ r~ ~i,> Jim Arlington Land Manager Attachments: (as described in letter above) _~, C?y1gVi/nS#~l'Oi~ ~~i= Qua t'll~~ ~'.~i ° ~~~~ F O R E S T O I L P~~ t or t I~1I 1.6 2~~~ Forest Oil Corporation A`. ' ~~~ 310 KStr-eet, suite 700 ~~.~01 ~.~ ~ ~. ,,,, ,,~ Anchorage, Alaslur 99501 ~~-'~'~- (907) 258-8600 Fax: (907) 258-8601 JUL 1 6 2007 July 13, 2007 Alaslta Oil & Gas Cans. Commission 4nchara~e Ms. Beth Maclean Ms. Temple Davidson US Department of the Interior State of Alaska Department of Natural Resources Bureau of Land Management Division of Oil and Gas ~ - 6881 Abbott Loop Road 550 W. Tr' Avenue, Suite 800 - '' Anchorage, AK 99507 Anchorage, AI{ 99501 ; 4 1~=- RE: Wesi Foreland If2 gas weal (WF #2); West Fore]and Field ~ U ~- ~ ~ ~ ~ f Dear Ms. Maclean and Ms: Davidson: oivi~i~~ tJ~= {:}!~. A~';tC~ C~t~ Pursuant to our discussions and the letter fmm the Alaska Oil and Gas Conservation Commission ("AOGCC") dated June 13, 2007 addressed to Forest Oil Corporation {"Forest"), previously provided to you by Forest, Forest is sending you this letter to request your consent and non-objection to Forest's application foran extension of the temporary exemption granted by the AOGCC for the WF #2 well in Conservation Order No. 532 ("CO 532'x. The AOGC has scheduled a public hearing for July 24,.2007 at 9;00 a.nt. to consider Forest's application for an extension of the temporary exemption (granted in CO 532) from the spacing requirements of 20 AAC 25.055, or alternatively, for a permanent exemption fmm those requirements. Forest is hopeful that prior to this hearing the BLM, DNR and Forest will have executed the Royalty Sharing Agreement that Forest. sent. to you on February 1, 2007 stipulating the allocation of production from the shallow zone(s) of the WF #2 so that the temporary exemption can be converted to a permanent exemption. The AOGCC requires that on or before July 16, 2007 Forest provide the AOGCC this letter of non-objection, signed by DNR and BLM, "ko Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption". Therefore, Forest respectfully requests that you please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to my attention. Please call me at {907) 8b8-2112 if you have any questions or concerns regarding this request. Sincerely, FOREST OILCORPORATION ~~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Divisiar of Oil d Gas ("DNR') and the Bureau of Laird Managerneru ( BLM) each hereby provide its consent to the application of Forest Oil Corporation (Forest) to the Alaska Oil and Gar Conserti~atiorr Connnission (' iIOGCC'J dated June 8, 2007 for• another temporary extension or alternatively, for a pernranerrt exemption to the drilling unit acrd spacing requirements of 20 AAC 25.055 to allow the West Foreland #Z well to continue to operate render terms imposed by the AOGCC. The DNR and BLM each hereby provide tfris letter of non- objection for the AOGCC to approve Forest's application. DNR: BLM: Z~I U"/~ C'~ ~./.~.-~ti (Signature) (Signature) Name: _ Name:_ ~o ~ ~~~ r f C /--a` Title: Title: ~G~z'.~ US!) fil~re~Y.-, N• 5'nl.~/r~7 ~~'~''""~~ Page i of1 ~~I~ ~ ~ ~~Q7 ~chorzge i=feld Office • • ~`. - ~~ Forest Oil Corporation ~~~~~`~~ ,~ ~ 310 K Sheet, Suiie 700 Anchorage, Alaska 99501 J U L 1 6 2 007 `~-~~ (907) 258-8600 Far: (907) 258-8601 Alaska p;; ~ ~i1S Cans, p~srmission AnGliar~pe Jnly 13, 2007 Ms. Beth Maclean Ms. Temple Davidson US Department of the Interior State of Alaska Department of Natural Resotrrces Bureau of Land Management Division of Oil and Gas ~ , ; J ~ ~' 6881 Abbott Loop Road. SSO W. 7a' Avenue, Suite 800 ~' ' Anchorage, AK 99507 Anchorage, AK 99501 ,j I } ~ ~,r~; ~ 0 ~ ~ RE: West Foreland #2 gas well (WF #2}; West Foreland Field C}I~I;SiC~1V i~i° DearMs. Maclean and Ms. Davidson: ~~~ ~f\l~ ~~~ Pursuant to our discussions and the letter from the Alaska Oil and Gas Conservation Commission ("AOGCC'~ dated June 13, 2007 addressed to Forest Oil Corporation ("Forest"), previously provided to you by Forest, Forest is sending you this letter to request. your consent and non-objection ro Forest's application for an extension of the temporary exemption gr~ttted by the AOGCC for the WF #2 well in Conservation Order No. 532 ("CO 532'x. The AOGC has scheduled a public hearing for July 24, 2007 at 9:00 a.m. to consider Forest's application for an extension of the temporary exemption (granted in CO 532) from the spacing requirements. of 20 AAC 25.055, or altematively, for a permanent exemption from those requirements. Forest is hopeful that prior to this hearing the BLM, DNR and Forest will have executed the Royalty Sharing Agreement that Forest sent to you on February I, 2007 stipulating the allocation of production from the shallow zone(s) of the WF #2 so that the temporary exemption can be converted to a permanent exemption. The AOGCC requires that on or before July 16, 2007 Forest provide the AOGCC this letter of non-abjection, signed by DNR and BLM, "to Forest's application for an extension of the temporary exemption. or, alternatively, .for a permanent exemption". Therefore, Forest respectfully requests that you please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to my attention. Please call me at (907) 868-2112 if you have any questions or concerts regarding this request. Sincerely, FOREST OIL CORPORATI ON ~' Jim Arlington Land Manager-Alaska Business Unit 77ie Alaska Depar7mertt of Natural Resources, Division of Oi! cl'c Gas ("DNR) and llte Bureau of Lard Management ("BLM) eadr hereby provide its consent xo the application of Forest Oil Corparation ("Forest') to the Alaska Oil mtd Gas Cortservadon Co-nnrission ("AOGCC) dated June 8, 1007 for• another temporcvy eztertsiarr or alternatively, for a perntanertt exemption to the drilling zrnit artd spacing requirenzerzts of 20 AAC 15.OS5 to allow7he West Foreland #1-vell to continue to operate wtder terns unposed by the AOGCC. 77te DNR and BLM each hereby provide this letter of nort- objection for• tl AOGCC t pprove Forest's application. ri BLM: (S gnature} (Signature} Name: ~(~! ~ ~ a~ ~U ~ Name: Title: ~ ' ~•~~ ~,er~t~ Tittc: Date: ~ [ 7 "' /J ~ Date: '~ ~ ~'' ~` Pa~~ t or i JUL 16 1001 snchQragP Field OificE X11 ~~ F O R E S T O I L C O R P O R A T 1 0 IV .~ ~O ~J~<?~7~et • r=~unfif~ X00 Y ,-,/J / ~~/// ~ ~ /p • ~XY~J?,CJ2fl~*,LJ'~(.l'-P~ ~~-~Y-t ~X11CCa% .~~J~~~ ~ M ~9a7~ ~s8-86o0 ~/• ~907~ ~s8-86o~ ~~ax) JUL 1 6 2~~7 July 16, 2007 las-~a OiP Gas Gores. Commission Mr. John Norman, Chairman Hand-Delivered Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Please find enclosed the following items, which were stipulated to be provided to the Alaska Oil and Gas Conservation Commission ("AOGCC") in its letter to Forest Oil Corporation ("Forest") dated June 13, 2007: 1. Letters ofnon-objection, originals signed by DNR & BLM on July 13, 2007, to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption from the spacing requirements of 20 AAC 25.055. 2. Evidence that notice of Forest's application and hearing was sent to all interested parties (postmarked copy of U.S. Postal Service certified mail receipts). 3. Forest's technical analysis for the WF #2 shallow gas producing reservoir at 8,500' (West Foreland #2, Reservoir Summary, dated 6-13-2007, containing 22 pages). Forest looks forward to meeting with the AOGCC during the hearing on Forest's application for an extension of the temporary spacing exception granted pursuant to CO 532 or, alternatively, for a permanent exemption from the spacing requirements of 20 AAC 25.055, scheduled for July 24, 2007. Respectfully yours, FOREST OIL CORPORATION ~" Jim Arlington Land Manager Attachments: (as described in letter above) Page 1 of 1 • • ~_~. -, :;- July 13, 2007 Ms. Beth Maclean US Department of the Interior Bureau of Land Management 6881 Abbott Loop Road Anchorage, AK 99507 :1~1~ ~ ~Q!~7 ias~a D~~ £ ~~ ~~ , t•~ Ms. Temple Davidson State of Alaska Department of Natural Resources Division of Oil and Gas 550 W. 7'~' Avenue, Suite 800 Anchorage, AK 99501 RE: West Foreland #2 gas well {WF #2); West Foreland Field Dear Ms. Maclean and Ms: Davidson: Pursuant to our discussions and the letter from the Alaska Oil and Gas Conservation Commission ("AOGCC") dated June 13, 2007 addressed to Forest Oil Corporation ("Forest', previously provided to you by Forest, Forest is sending you this letter to request your consent and non-objection to Forest's application for an extension of the temporary exemption granted by the AOGCC for the WF #2 well in Conservation Order No. 532 ("CO 532"). The AOGC has scheduled a public hearing for July 24,.2007 at 9:00 a.m. to consider Forest's application for an extension of the temporary exemption (granted in CO 532) from the spacing requirements of 20 AAC 25.055, or altematively, for a permanent exemption from those requirements. Forest is hopeful that prior to this hearing the BLM, DNR and Forest will have executed the Royalty Sharing Agreement that Forest sent to you on February 1, 2007 stipulating the allocation of production from the shallow zone(s) of the WF #2 so that the temporary exemption can be converted to a permanent exemption. The AOGCC requires that on or before July 16, 2007 Forest provide the AOGCC this letter of non-objection, signed by DNR and BLM, "to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption". Therefore, Forest respectfully requests that you please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to my attention. Please call me at (907) 868-2112 if you have any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION ~~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas (`DNR') and the Bureau of Land Management (`BLM') each hereby provide its consent to the application of Forest Oil Corporation (`Forest') to the Alaska Oil and Gas Conservation Commission (`AOGCC') dated June 8, 2007 for another temporary extension or alternatively, for a permanent exemption to the drilling unit and spacing requirements of 20 AAC 25.055 to allow the West Foreland #2 well to continue to operate under terms imposed by the AOGCC. The DNR and BLM each hereby provide this letter of non- objectionfor the AOGCC to approve Forest's application. ~f DNR: BLM: ;/'l G'`"J~~ ~ ~~ (Signature) (Signature) Name: Name: ~? ~ t.. , - f C ~• s`v Title: Title: ~ c: ~,~r IUSJ ~-a~~d~, £r ~Ul..</rey ..e- ~r~-~ls Date: Date: r''~ .'> y~~ Page 1 of 1 Forest Dil Corporation 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 • • Forest Oil Corporation _~ 310 K Street, Suite 700 f~ :_ Anchorage, Alaska 99501 ~-~ ''~ (907) 258-8600 Fax: (907) 258-8601 July 13, 2007 Ms. Beth Maclean Ms. Temple Davidson US Department of the Interior State of Alaska Department of Natural Resources Bureau of Land Management Division of Oil and Gas 6881 Abbott Loop Road 550 W. T" Avenue, Suite 800 Anchorage, AK 99507 Anchorage, AK 99501 RE: West Foreland #2 gas well (WF #2); West Foreland Field Dear Ms. Maclean and Ms. Davidson: Pursuant to our discussions and the letter from the Alaska Oil and Gas Conservation Commission ("AOGCC") dated June 13, 2007 addressed to Forest Oil Corporation ("Forest', previously provided to you by Forest, Forest is sending you this letter to request your consent and non-objection to Forest's application for an extension of the temporary exemption granted by the AOGCC for the WF #2 well in Conservation Order No. 532 ("CO 532"). The AOGC has scheduled a public hearing for July 24, 2007 at 9:00 a.m. to consider Forest's application for an extension of the temporary exemption (granted in CO 532) from the spacing requirements of 20 AAC 25.055, or alternatively, for a permanent exemption from those requirements. Forest is hopeful that prior to this hearing the BLM, DNR and Forest will have executed the Royalty Sharing Agreement that Forest sent to you on February 1, 2007 stipulating the allocation of production from the shallow zone(s) of the WF #2 so that the temporary exemption can be converted to a permanent exemption. The AOGCC requires that on or before July 16, 2007 Forest provide the AOGCC this letter of non-objection, signed by DNR and BLM, "to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption". Therefore, Forest respectfully requests that you please signify such consent by signing where indicated below, fax a signed copy to me at (907) 743-2212, and mail the original to my attention. Please call me at (907) 868-2112 if you have any questions or concerns regarding this request. Sincerely, FOREST OIL CORPORATION ~~ Jim Arlington Land Manager-Alaska Business Unit The Alaska Department of Natural Resources, Division of Oil & Gas (`DNR') and the Bureau of Land Management (` BLM) each hereby provide its consent to the application of Forest Oil Corporation (`Forest') to the Alaska Oil and Gas Conservation Commission (`AOGCC') dated June 8, 2007 for another temporary extension or alternatively, for a permanent exemption to the drilling unit and spacing requirements of 20 AAC 25.055 to allow the West Foreland #2 well to continue to operate under terms imposed by the AOGCC. The DNR and BLM each hereby provide this letter of non- objectionfor t AOGCC t prove Forest's application. D BLM: (S gnature) (Signature) Name: ~r~t ~ ~ ~/I~ Icy Name: Title: /~ ~L~ ,~c~ ~=%l~ Title: Date: C l ~ ""(J 7 Date: Page 1 of ] 4. _~~ .!. r yf~w ~ ~., TO: Forest Oil Corporation 31 D K Street, Suite 70D Anchorage, Alaska. 99501 (907) 258-8600 Fax: (907) 258-8601 .ii~t ~`~j~' r'~i~sv%~ lhl p, `, ~" : , Federal Lease (A-035017) and State of Alaska Lease (ADL-359112) landowners and royalty owners DATE: July 13, 2007 SUBJECT: Forest Oil Corporation application for either an extension of temporary well spacing exemption, or a permanent spacing exemption in accordance with 20 AAC 25.055. West Foreland #2 gas well; West Foreland Field Forest Oil Corporation ("Forest") is providing you this letter as a eersonal notice pursuant to dvections received by Forest in a letter dated June 13, 2007 from the Alaska Oil and Gas Conservation Commission ("AOGCC"), enclosed with this notice. This personal notice is to inform you of (1) Forest's application to the AOGCC dated June 8, 2007, also enclosed herein, to extend the spacing exception temporarily granted by the AOGGC pursuant to Conservation Order No. 532 or, alternatively, for a permanent exemption, and (2) your opportunity to be heard by the AOGCC regarding Forest' application at a public hearin~ scheduled for July 24, 2007, at 9:00 am at the Alaska Oil and Gas Conservation Commission offices located at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501 as described in the AOGCC's Notice of Public Hearing dated June 14, 2007, enclosed herein. Forest's requested exception to the statewide spacing regulations for the WF #2 is necessary to optimize gas recovery from the Tyonek formation in the West Foreland Field. At the AOGCC hearing scheduled for 3uly 24, 2007 Forest will be seeking a aermanent spacing exception to the provisions of 20 AAC 25.055 hearing if the land owners for the Federal Lease (A-0350]7) and the State of Alaska Lease (ADL-359112), the two leases from which the WF #2 well produces, have executed a Royalty Sharing Agreement ("RSA") that stipulates how the production from the sands stratigraphically shallower than the 9200-foot sand shall be allocated among the two leases. Forest prepared and submitted a RSA on February 1, 2007 to these landowners, the Bureau of Land Management ("BLM") and the Alaska Department of Natural Resources ("DNR"), recommending that this production be allocated 90% to the Federal Lease and 10% to the State of Alaska Lease. If the AOGCC accepts this RSA and approves this allocation, then the funds that Forest has been placing in an escrow account for this shallow zone production since December 2004 can be approved for distribution to the royalty owners. If the RSA is not executed by the time the July 24~' hearing occurs then Forest will need to request an extension of up to six months to the temporary spacing exception granted by the AOGCC in Conservation Order No. 532 until such time as the Royalty Sharing Agreement is executed and Forest can apply to the AOGCC again for a permanent spacing exception and request approval from the AOGCC to release the escrowed funds. Should you have any questions regarding this personal notice please contact Forest's Alaska Business Unit Land Manager, Tim Arlington at (907) 868-2112 or email him at }drinngton ~forestoil.com. Enclosures: Forest Oil Corporation application to AOGCC dated June 8, 2007 AOGCC letter to Forest Oil Corporation dated June 13, 2007 AOGCC Notice of Public Hearing dated June 14, 2007 Page I of 1 -. ncywtarCU tvv. fiRi-~1~76~~?(1S Date Stamp .~ Reg. Fee CHp 9 ~ - .. • . . -. 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JU Restricted Delivery Fee _{,jilt ~ ~ (Endorsement Required) ~ ~ I Z `~~f ~ ~ t fl.l $ ~ °~~! L~ s / !1J Totai Postaoe & Fees.. u~ Q '.~-~.~~'" ~ EIELSHEIMER REMAQ~IDER FNDTN d O FOUNDATION MGMT GROUP LLC C7 100 SECOND AVE FL 34 ------------------ F` ~EATTLE, WA 98104-1022 i .~ ~ s . ti '' ..n - r-~ 0" ~ Postage $ ~ y ~1. r I f )ti f,~ ~--~,,.~ . ~ Certified Fee ~ / ~Q. h, i7 (tJ 65 1't O `-_ '4! `,. Return Receipt Fee ~` i ~ (Endorsement Required) a . ~ ~ ~ Postmark Q s C7 ~ 5 s' H r Restricted Delivery Fee - ""~ ~ 3 2ut/~ ~ O (Endorsement Required) ~II,Iifl ~~J ~~,'~ ~ Total Postage & Fees ~ pA F tti sent o S' 3~-~'I-E DAVIIjSON 0 ~L.ASKA DEPARTMENT OF NATURAL, p sires; ;ZESOURCES ~, or Po ~IVISION OF OII, & GAS - -------- crry; sri50WEST 7Ttt SUITE 800 CHORAGE, Ag 99501-3560 ~~~ ~~;; 4i • -• - r ~ ~ ' ~ r-a t1E I1~~1~9?r - . m Q' ~ Postage $ , ~1.4i ii ~i ~~o~+ q~y'.°,, ~~ C ' C ; g Certified Fee S _ it ~ to , ~ 3 ~ C] Return Receipt Fee (Endorsement Required) c -' ~ O ~ strne ~ ~ ~ M ~ C7 ~ Z ?~I ~ Restricted Delivery Fee (Endorsement Required) ~ ~••-i . i liI , 7i ~ OQ rtJ Total Postage & Fees $ ~i. mi t7T#-3~ ~-~ O ~- DONALD & NOLA SANDER S TRUST C7 .DONALD SANDERS TRUSTEE ~ 359 LEAN ST ___ ____ _ ~ - - --~ ~`' , MESQUITE, NV 89027 U:S ;P , ost al.Ser viceT M C E RTIF IED MAiL " TM:REC EIPT (Dom estic M ail O l , N n y o /ns urance C overa e ' For d eliv g Provided) ra re,. ery inf . ormations visit ou t web~iro s ~ . ...--- m tr 0 -_..._...~ Q O Reium Receipt Fee (Endorsement Required) ~ ~ Restricted Delivery Fee (Endorsement Required) ri.1 fU Total Postaoe & Fees D f~ Q 0 C~- TINAOKi.aunn,r,. n.,,,., Postal SerwiceTM: ~r~FiFn MAILTti, RECEIF ' :.;'(Domestic Mail Only; No Insurance c:ogerayr t",vrn+aw ` `For delivery information visi4 our websife at wwwaisps.comm m Q.. i.t7 CI 0 Return Receipt Fee d (Endorsement Required) d Restricted Delivery Fee ~ (Endorsement Required) fl,l Total Postage & Fees [7 ~ sent o MS. KIlvI C[JN111NGHAM ~ SireeG a~~K INLET REGION, INC. ~,- or POeoL525 C STREET, SUITE 500 cny," siai~CHORAGE, AK 99503 2 Postmark o JUCQ1P 3200' OQ ~ i17~I-u~?~~'S .- i • ~ ~ ~ ~ ~ Postage $ ~ ~ ~ - 41 tt j i1 V7 ~ ",~ 0 Certified Fee ~S~ L1~~CQ~~ON A~~h°o.°p~ G3 Return Receipt Fee J ~~ Posfrnark `q `=t p (Endorsement Required) ~ ~ 1 ~ ~ 3 Here ~ , ° Restricted Delivery Fee "- JU~ ~ ~ ZOOI 4 .` p (Endorsement Required) $ii, tjti , •Z f1J , 'v qtr. ,' Q Total Postage & Fees ~ t~~ ~ j i i ~~ ~ S `4~ 1ti GORDON ECCLES ~ 14023 SAGE CT ._________________ ~ CCALL, ID 83638 .~ p ~, • . ..• .•. - rl ~- '° ~ I 75 ~ 0" ul Postage $ ~~--~~Ll•~t! •~ .r~ _ O ~? ~ Certified Fee . ,,~ 5 ~ p.' q f 1Q rt~ ` p p p Return Receipt Fee (Endorsement Required) ~ + tt ~7 i 5 t 2 ° - O .~ ~ nei p Restricted Delivery Fee , ~ e. y q: p 0 (Endorsement Required) ~l~ ,1 ilk ~O ~' \ ` fLJ ~ --d USP`~ = ~ ~ ~ tlJ o Total Postage & Fees $ - ~ "-"--'~ _~1i ft?if~~'?~iflp N GEORGENA NEWMAN p n PO BOX 608 •----------------- N KAPAAU, H[ 96755 .~ ~-~ .~ fl.l ~• • ~~ ~ ~ ~_ ~ ~ ~ ~~ ~ rrt si i€,; art Postage $ a ~ F ~" •- (t%~~ ....~ . ~-~' do ee Certified postmark ~ -` ; p p o Return Receipt Fee (Fsdorsement Requred) ~ . i ~~ 5 ' _ Here m ,; ~ JUL 1 32007 T p Restricted Delivery Fee ~ij,ilii ~ (Endorsement Required) '.~Z ~ r~ > ~ p Ill , - - `~~?1 & Fees I, O - OA ` ~1~~ SP `~ fl.l Total Postage ~ p r- E GAY KNUTESON ---------------- ~ 535 CHARLES ST p MESQUITE, NV 89027 --------------° l~ ~ , ~ ~ • r- f1J - - ~ ~ ~ ~~-• Postage $ , ~(; ` ~ ~ ~ "yC to p Certified Fee r~ n) ~ ~. 5 ' tl~ ~~~~ ~ p Return Receiq t Fee 0 (Endorsement Re wired) ~ ' \ ~ ~ Here o ` p Restricted Delivery Fee (Endorsement Required) $tl, Lltl O ~pO ~ USPS ~/ p tU Total Postage & Fees fiJ ~ ~ ' •- ~ _,,,.-~ (17~1,:r/~Ull7 O N HAROLD KRAV[K p 2701 E ACCRED AVE #145 '~--'~~ p MESA, AZ 85204 .~ ~ ~ • ..• ••~ ~ ~~ • ~ , ~ v • ; ~' $ i~51t1 ~-. ~ Postage ~-' ~ /~ ANC, ~ O ~`p Certified Fee ~ k 0 p Return Receipt Fee '}, ~ uired) ~ t Re ` ,, g Postmar p l r = Here fi , p q - (Endorsemen O JUl ~ 3 2UQ7 ~ X~ p RestrictedDetrveryFee ±itl,i)11 (Endorsement Required) ~ j r p N $ 5~f F ~ Dot `'.I~R '?' ~f N ees Total Postage 8 ugpS / O [~- GREGORY S BURGESS ________________ ~ 963 BANMOOR DR ~ TROY, MI 48084-1686 ---------------- C`- .~ • ~ ~ • .•. m m ~ .. - .. iv .- - = - ~' m Postage LI 4f $~• ~ - 1t51i1-~' P'L~ON r4lyC Q .. ~ Certified Fee ~ ti5 ~ two' 'E } p `.! • V ~~ Postmark p RetumReceiptFee (EndorsementRegmred) i i` - \~ O , ryry~t JUI~r~ 2W~ p p RestridedDelivery,Fee (Endorsement Required) $If,Ai} '~j t •` ~. p p°t O ~ O ru a ,. ~`\~~ $ ~ ii?l~l~t1$ ~ Total Postage & Fees ; _ p ENEA TEKNA INVESTMENTS ~ O ATTN: MATTHEW T GAVORA -------'--' p PO BOX 70021 ------~•- N FAIIZBANKS, AK 99707 - P t l . . os a Ser viceTr., _ CERTIF IED MAIL ECEIPT . . (Domestic M ail Onl N i a y ; o nsur nce Coverage Provided) F or delivery inf ~~ __ ormation visit our we bsite at wwvr.usns enmr m a- - ¢ t rt Postage $ \ ` ` ` ~~' v ? ' y 'Qp 0 certified Fee ® ~ 1 .ri a tQ ~ ~ . `Q ~ q~ 01 L7 Retum Receipt Fee (Endorsement Required) _^) ` ~ j ~~-' O r r ' JUL ~~1+tt Hero ;, G ~C ~ y cs ¢t " Restricted Delivery Fee R ,• ~ p ~ ~ (F~dorsement Requred) ~() , ()il ~ ~ 00 ~~, rv ~ Total Postage & Fees ,..~~ .~i ~ ~ J>~j ~, us~5~,~. (1~/j ~f7i)1{7 0 JASON M BURGESS p 346 E TONTO DR _________________ M1 PHOENIX, AZ 85044 .~ r-1 ~ ~, ~ t=l • . . - m m ~- ~ ~ Y ~pt ~ ~ - Postage $ ~~( 4j f1,; ( A ~ NC ~ ~, ~O ~ t7 0 Certified Fee .5 ~ ,p .i, ° ` L7 O Retum Receipt Fee (Endorsement Required) R t i , j ~ ~ ` : _y O .} „`~ 4,~ar,(y,~~ ~~ P [(IU ~ es ricted Deflve (Endorsement Required ) t-).~iti JU s ~ . i tl.t Total Pnetane R Fer.Le Q~ 1~ A r ~..~,9 `O~ It HVA ROYALTIES ~ 55 NE FIFTH AVE STE 201 tt ~ DELRAY BEACH, FL 33483 .~ ~ • m •• • ..- • . .•. m ,-.R Tt! H j . - ~ V") Poatage $ ~ , ~ ~¢ j f `~ K pNC Certified Fee ~, S / P o~ ~ / o = t~ O Retum Receipt Fee (Endorsement Required) i 5 ~ , ` ~ , O ~ ~ JUL N~ 2007 n O ~ Restricted Delivery Fee (EndorsementRequfred) ~t),111) tl 2 m iTj ~4f' \\ O f1J f1.I Total Postaoe & Fees AA.. ~ .li ii\\~~ ..Yj ~ ~ r ~}.[4 +y f /f2+~`~~-~ Q ~`- JEFFEREY L BURGESS ~ p 4891 N LA LOMITA ------------°-° ~ TUCSON, AZ 85718-6028 m - ~ A~ 7 ~ O" Postage $ "~ Certified Fee ~ / .5 ~Cb O O i _ ~C l!> ,~ > ~ 0 Return Recei t Fee Postma O ` ~ p O (Endorsement Required) ° ~ ~ ~ j 5! . Here to Restricted Delivery Fee ~ (Endorsement Required) t ~t),t3!)t 1, 3 2007 1UL 4. 4 to fl.l Total Postage & Fees ~ ~ ~~f. ~. s'o o`~, , ? I _ ~ ' d \ ttcv N ' JAMES L THURMAN & ZETA THURMAN ~ 925 AURORA DR -°---------- ~ FAIRBANKS, AK 99709-5506 .~ ~ ~ ~ . ~• t.n , , _ Q- - .~- ~ .-~ r-a - U' Postage $ ~--~(~¢j ft jil ,~--_..__.,..,~, ~ ~ Certified Fee ~ ~ 5 t)~~P~~ON ANOJyO ~ ~ Postage $ i' ~{ ° ¢j ~,€f-S~Ea ~J1tCy0 '~ P -Y~': Certified Fee ~.~i +o _ ~' ~ Retum Receipt Fee r ` < ostmark p , ~ - _ ~ p (Endorsement Required) ` j S ~ } l7 Retum Receipt Fee Restricted Delivery Fee `~ ,., O (Endorsement R ulred ~ , l , 7 ~ i~ X ~ (Endorsement Required) ~-i, I)1) 7 c. `~ ~ Restricted Delivery Fee ; ~ ib~ pq ,t f1J r ~ •, ">,~ `4n~,%~ ~ (Endorsement Required) $Il, t)li ~., y0 t7J Total Postage 8 Fees v j ti7jj ~~~i.11/ pg ..~ N ' . U ~~5~.,~/ ~ `----._~" (1J Total Postage & Fees $ , ~ j f11)~~~,..4Rf'l HARRY J HILL, DECEASED Q r- GREGORY C TAYLOR, ESQ M1 HUMANE SOCIETY OF SEATTLE/KING CNTY ~ JERMAIN, DUNNIGAN & OWENS ~ 3000 A STREET, SUITE 300 O TTN DIIZECTOR OF DEVELOPMENT _______ ____ ~ 0 13212 SE EASTGATE WAY - - ANCHORAGE, AK 99503 •---------------- ~ BELLEVUE, WA 98005 .~ ..- .-. N .. (U ~ ~ ~_ _ 5A ~ T m Postage $ ~,~~1.~r1 ~`p AAi~y~ ' [f' ut ,b5 Certified Fee ~ °~ postmark ~° .~ o `1' ~ ~ UL 1~g~p01 ~. C~ Retum Receipt Fee Q (Endorsement Required) .. ~ ~ C) J ~ i O Y,t~ g RestrictedDelivery,Fee $11,11 =` ~fp `o ~` ~ (Encforsemerrt Regmred) ~j ,,q f1J Total Paetane 74 Fri C! [~- CARGOIL AND GAS CO LLC ________________ Q PO BOX 29450 ~ SANTE FE> NM 87592-9450 .-------------- N .~ • ~ i - .- m Q .. • _ a ~ .• - ~~i ~ ~1 . ~" ~-. ~i $ ~ ` / o~ AN~~` ' ~ h' ~ tt7 Postage. ~ p.¢ ' . 7,h5 %.~ `4 d Fee f ~` ie Certi ' postmark ~, p Retum Receipt Fee •~ • 1-r} Endorsement Requrred) f JUL 1 ~'~07 Q O ( Restricted Delivery Fee fell , lit I t11 G' ' o ~`~ (Endorsement Required) ~ , O iv 1 2 _ ~•- ~~ ~' =~17 df (U . _ Total Postage & Fees O f`- Sent BURR PEASE & KURTZ 1NC ___-_°-- Q O sires 810 N ST STE 300 ANCHORAGE, AK 99501-327 or PC --------- I,., coy, .~ • ~ ~ .. .-. Q' .. . ~ T D ~ ~ m ^~ ~` "t.41 $ ~ -~. ~~ qNC ~ h'o '` ~ Postage ( Certified Fee ~ a 2 postmark rt~ `., O Retum Receipt Fee ~} oZ ~~• d JUl 1 "~r2007 :- p ( O ) Endorsement Require 11I 1 r ._ ~ ~• ' ( ,1 Restrtcted0eliveryFee ~t EndorsementRegmred) ~ • p ~, .• ° ru ~~ ~1 $ Cj `~zi is _~7 , --.__.. _ . - (1J Total Postage & Fees O L.. Q JIl3 K RHEE 2233 BIRCHDALE DR --------------°- ___- O ~.. THOUSAND OAKS, CA 91362-1532 ----------- m Postal $ ~~1.41 , .~y~ Certified Fee ~ . hS ;~ ~P g _ ' ~ D O O Retum Receipt Fee (Endorsement Required) ~ ~ 1 rj t Postmark (3 ~ m JUL 13" a01 x' O O Restricted Delivery Fee (Endorsement Regwred) t $Il,lJtl `t, ~ p OA¢r,; ` C ~ f1-I Total Postage 8 Fees ~ - ,?! ~11:1~• 17, ~1r d l;`- CHARLES E COLE ~ 406 CUSHMAN ST --"---"---- Q FAlltBANKS, AK 99701 D` ----------- ~" *s, ~i 1„ire __ frl $ ~ '~ Q' Postage ~~01~ ANC~~-~. Certified Fee Postmark ~0 CI Q ~ ~ i S J Z Here z+ Retum ReceiPuired) r 3 Zt1Q~ ent Req ~ VL Q (Endorsem 1 p J O Restricted Delivery Fee (Endorsement Required) ~l),Illl ~ r~ g~ - O O ru ~ ~ 3 !? ~ 21 USP`' '~ fiJ Total Postaoe & Fees ,.- ~- C] ~ c _NOLA SANDERS ~-~-~---~ O I`' X45 HARVARD AVE NCHORAGE, AK 99501 ___.___ A '• • - r~- .. ..• • • ra .-..-.mr~ ~aaaw.~ ~f91 W1 • ~ m ifl O , w......... W .. U Retum Receipt Fee ~l ,1 ~ • JUL 1 3 °` p (Endorsement Required) ~ • t- ~W/ O x; Restricted Delivery Fee $1 f ,1111`•., O p~t~~ r (Endorsement Required) rtl ~,~1 ~` ~,~.~~2fs~`7r'r rl.l Total Postaoe & Fees .~+ ~ [~ N ~ ALICE ANNE CALVERT _________ O ; 411 UNIVERSITY STE 1200 O c SEATTLE, WA 98101 .--------• [~- -t ~~ ~ ~ wo-° '' • a ra '" .-. _ m CA I ~{ ~,~ ~ /, Postage. $ °~-{ 1,§~ Certified F ` r (}.`il~f.---..,,®. ~°~ AlYCy~ 0 G7 ee ~ . ~ , ~5 , / ~ , c~ ~ Q Retum Receipt Fee - (Endorsement Required) ~ ~. f 5 Restricted D li ¢''F. Postrrtack r H re n~ L 1 ~ 2007 0 e very Fee (Endorsement Required) $1~, i)tl '~ JU ~,' . ' • f1.I t'1J ~ Total Postaoe & Fees ,~, ~ ~~ _ i p~de` ; I,~r ~ ,~ 'ti u$ ~- ~ DAVID R. COTTIS 84 5 ~ [~- - 133 PAINTED CHURCH RD CAPTAIN COOK, HI 96704 •---------~------ .~ ~ ~ ~ N ~~ ~ ~ • • .. ,.. ~ m T - - b ~ Postage $ ,~-•~ ~' j . § f i t ,~ t~ y_.~ '~ ~ C] ~ Certified Fee ` J / ~ '~ 1~ ~ 65 ; ~,t6s'~, ~ ch'D C7 o Retum Receipt Fee (Endorsement Requlred) .~ Postmark ~ 1 ~ ` ` Here ~Q•' ' ~ ~ Restricted Delivery Fee (Endorsement Required) ' ' ' JUt 1 32007 "` $11 ~ 1117 { "y ~. ru fLl Total Postage & Fees y ~ ; O ~ ~ " ~ Jf [ti COIL INC ~ 5914 ~ [ti 124TH CT NE KIRKLAND, WA 98033 ____________ _ _ - -- .~ • ~ ~ ~ •. ~ ~. r~ ~ ' g 5 ~ R9 ~ m G~'t~ ~` /~, j~~1.41 / `f~} I ' .; ~ ~ Postage. $ c Q.. to G ` . ~ ' S ' 1~~1 t< O Certified Fee '- y ( t '~ t q¢ x . U~ ~ kfere c i O p ~ } ~ ~ Aetum Receipt Fee p( (Endorsement Required) S ~ ~,~ ~ , OOt O Restricted Delivery Fee ent Required) ! , Y ~ ~ ~Il,ilil •~~10 ~ py' f Q rt..l 11J (Endorsem Total Postage & Fees~i _ U S .2i f ;-'~{~ti~t ~_ tom- CHERI CATHLENE LAUDER --------------- ~ p 38050 HWY 228 BROWNSVll.LE, OR 9732 ----=---------- ..n ~ ~ , , tr ..- .-. Flt3 :, _t :~ ij •. • • m ~ Postage l~~t, 4 i !i s f ~_~ ~~ RN Certified Fee ~ - ~ . ~~ r~ ~ CiSsQ ~ ~ p Retum Receipt Fee (Endorsement Requited) r ? Postmark 1 ~ d Here ~ ' ~ Restricted Delivery Fee ~ (Endorsement Required) {' JUL 13 2001 ~' $Ij (IIJ S Q (1J Total Postage $ Fees ~ , , 7 ~ ~.•-~ ~ •r - O ; Q vj~i ~ f r- ~ DEBRA ROBINSON (C! 9333 MEMORIAL DR #20l ---~------~------ ~. HOUSTON, TX 77024 .~ ~ ~ ..- .-. f1J ~ . • I~ rl . - hl~ ~ ~ s ,. ' ~ m L\~:~4i Postage $d ° ~, tlj t3 '`.. - ,~~o Mrs .~P ~'fl'. Q- Certified Fee o O ~ ` Retum Receipt Fee ~ 15 ~ ostmark o JU[ -~~ 2007 ~' i . O O (Endorsement Requred) , l y ~ •~ ~ 0 t) Restricted Delivery Fee ~li,i (Endorsement Requred) , 0 q ,. `. -O vp ; O 77 ~~~~ / rtI (1J ,~.~ 21 Total Postage & Fees 3 fj O -`- COLENE MERBS •---------°- ~ ` PO BOX 1394 RONALD, WA 98940 ~---•--"---' l - .~ ~ ~ t.>17 a - ~ . -. 'a X71 to ~ • -' .. $ ` ~" w O ~ Postage l - pt3 1)V~h, -, Certified Fee ~ ~ b~ t l19 , q~ ~~~Oi D _='~ Postmark ~ O p Retum Receipt Fee (Endorsement Required) ~ ,` ` ~ ~ i ~ • - ~~ Here ~ 3 2001 - JUI ~ Restricted Delivery Fee (Endorsement Required) $il.ilQ . ' : O flJ (1J Total Postage & Fees ~ ~ ~ • •_ ~~ , y rf It 1 f ~ Q CLERK OF TRIAL COURTS "~S~ t`- RE RICHARD WAGNER O ALASKA COURT SYSTEM ""'-"'-"" O l01 LACEY STREET FAIRBANKS, AK 99701 .~ ~ '' ' .-. - - ~ ~ ~ ~ ~ ~ ~ Postage r i 1. $ ~ . ~1~f\ ~~ /.t~~~ AIYC~o O Certified Fee ^ ^) ~5 ~' f r g~P ~ Retum Receipt Fee CJ (Endorsement Required) ` C ~ ` t . f s -t Postmark rt ; JUL 19~~Q01 ~= ° Restricted Delivery Fee O (Endorsement Required) $I t,1 tIJ 2 ~- -~ ~~- 0 fU Pl.l Tntal Pnatana & Fees .I. It i ~,~i '7 ririp \Q . -U lXl.~T ~~f O -- tt ROBERT L & DEANNA PERSONS ~ ~ PO BOX 403 GIIZDWOOD, AK 99587 ------------------ .~ [~• ~ ' • -' m ,-~ • - - _ ~ • ~ . H~ ~~14 ~ - m ~ , `~ Postage $ ~~~ 4 f i t j jFt~ yCi~ ~ ` O Certified Fee 1 ~ 1S ff CJ O (Endorseme R R~Begr alredj ~ .15 - J~~~`~ I~Oj nt Q ~ Restricted Delivery Fee (Endorsement Required) ~,17,iJ11 '`~ ~~~' ~ Total Postage & Fees ~ - ~ ~ • ~) G, ` SPS O ~ r , ''~ ti 1 ~ 1 p , r ~ ,, 111 ~ JOHN M ROBINSON p 9333 MEMORIAL DR APT 201 ----------------- [~- HOUSTON, TX 77024-5735 ----------------- .~ ~ ~ ~ .. ..- .-. 1'U ~ 2 V ~ vii. . $ ~'` `` p- t Postage i~~ r ~111C/y0 ~ ~ , ~ Certified Fee ~ ~ ~5 ~ ~+ ~ `Y ' ~ O ~ Q ,~ Postmark ttit'`t C) a Retum Receipt Fee (Endorsement Required) ~ ~ I •~y ~ Here M ~ ` 1 3 2001 :: ° Restricted Delivery Fee (Endorsement Requrred) $R, IlA ~~ ~ l~ t ~~' r` 0 , O fl l ~ ~ ~~ f /; • . tTJ ~ ' Total Postage & Fees ~. i~ J ~ -+ %' ° ELTA SOCIETY ~, TT LAWRENCE J NONVEU •-------"-"-'-" ° 75 124TH AVE NE #101 _ ___ _ N Frt.FVtrF. WA 98005-2531 _ _ '"-"-~--- .~ ~ ~ ,a, , .. ..- • . .-. r to a . - - - ' ~ k F ~ ~ m " e $ 1.4~ Posta ©~~ e __-__..... ~ O~ ANC~,Q°"*,~ iT t.l"1 g ~S ~ o Certified Fee '~ G ~ Poshnark t p Retum Receipt Fee j, 5 ' uired) ~ ~ M Re ,~ ~Ul ~ ~~p07 p , q (Ertdorseme _ J O Restricted Delivery Fee ~1 i , Illl (Endorsement Required) ~'y, O ~~ ` O ru 1q 21 ~ r ~°'t J `'~i~i3~'.f' - ~' N Total Postage & Fees -•..~__.• O THE ERVEN REVOCABLE LIV TRUST ~ C7 MELBA C ERVEN, TRUSTEE •--------- ° 707 HILLCREST AVE ~` ROSEVII,LE, CA 95678 •"'"""-"- '• ~ ~ cO m - - ' Postage $ i i~t~4f `~ arv~y ~, fi~~dJ~ P O . ~ .p ~ Certified Fee / / ~. 5 ~ ~ `~~\'. ° ~ ~4J ~ ,; ~ ° t F i ~ JUL ~ ~07 ° ° ee p Retum Rece (Endorsement Required) ~ j ~, 4 5 tr ~ r ° RestdctedDeliveryFee ~11.))Il y tea, '`~D Oor; ° (Endorsement Required) \ p ~, \ U p 5 ~, fU flJ Total Postage & Fees .~•. 2i ~ _ it'd?'~~=~~E~'' ° t~ JOHN T PEAVEY ° PO BOX 88 ~ CAREY, ID 83320 ,______._______ .~ • ~ ~ • m m ,, . ..• . - . }~ ' ~ m D- ,~~~. ~1 postage $ Ct° ~ `~ ~~~~ Ay~y t.rt • Certified Fee ~ `~' ~~ o : `9 ~ .. ° O ~ RetumReceiptFee ~ ~i5 uired) t R ~ ~ Postmark m-. o JUL iH3~pp~ a, ° , eq (Endorsemen ~ _y O Restrk;ted Detvery Fee ~Il,llll (Endorsement Required) SAO ~~'.- ~,h p `On ; ` a fU Total Postage & Fees d JOHN K GARVEY REVOCABLE TR ~ o R H GARVEY BLDG ------------=--- O 300 W DOUGLAS AVE STE 1050 - - -~- F` WICHITA, KS 67202-2911 -"~--- - [~- . , ~ ..- .- ut , ~ Postage. $ 1 .~~pN AN~h;~ Certified Fee ~ ~ b5 ~" ~~ , ` O O E Return Rece4 t Fe; ` ~ Q Indorsement Re wired a ~ ~ ' ~ Postmark MM itt ': e _ t C JUL ~ ~ 2UU~ ~' Q Restricted Delivery Fee Q (Endorsement Required) ~t),Utl ~_ `` y ~ flJ - ? } ~ Total Postaoe 8 Fees .~i _ ~.. ~~ y. _ ~~~}.~,~p~ / it f fr.tt ',°.>7lti! Q KEITH W CALDERWOOD REVOC TRU _ ~„ ST M1 NADENE M PETTUGHN, TRUSTEE ~ KAREN ELLIS, SUCCESSOR TRUSTEE ""-°'-°°----- ~ P.O. BOX 495 KENAI, AK 99611-0495 "-""-°"°°"' .~ ~ ~ ..- .-. ~- r . ~ t.r'1 ra At R `'5i ~ ~ . ~- ~~ ~ Postage $ ~ (^ I.~~ -°~ ~~ ~~y 1~NCfyQ~a. u'i ~5 Certified Fee ~ r`~ ~` ~(r k ~ p p Return Receipt Fee ~ ~~ d) t,; - > Postmar "ft ~e~ '~4~ U ~ p (Endorsement Requue :' ~ - J ReslrictedDetiveryFea ~ll,ilfi (Endorsement Required) `',_ :y1 OA ,' `i i G{ j O tv ~ 5•_i ~ Total Postage & Fees yjy~~p ~ j' ~~rT J/uOT~ ~__/` C7 D- WILLIAM HARRY MCDONALD ._________________ O 6640 JOLLIPAN CT ~ ANCHORAGE, AK 99507 •------------"'"' ...0 ~- . - • • ra ti A R g ~- Q' Postage $ .. r ~~ 41 ~L~~~K AN~/yU ^ ~ Certified Fee • 5 • , '~-'~ ~ ` ~ ,~ O Q [] f Return Receipt Fee 1 (Endorsement Required) ~ ~ ` ~ • 5 ~ Postmark t" 5 G JUL N~ 2007 O Restricted Delivery Fee (Endorsement Required) ~I]•17i! ;YZ ~ , c ,• _ ~ Q fiJ Total Postage & Fees ~ ~ lJ~k~r \!~ j O ~O t fJ~f~~~- `~ C7 WASHINGTON CORRECTION CENTER 1'- O OR WOMEN/PRISON PET PROGRAM " l7 TIN BETH RNARD PROGRAM DIIt '"'"" '"'"""---' [~- 601 BUJACICH RD NW Ili HARBOR, WA 98332 ________ __ .~ i ' ~ ~ ..- .-. ..~ .. • r-~ _ trJ ~ . - ~(~ ~} tj m ' Postage $ --t \41 ~~ P,OH Ay~~yO O u'- _ ~ ~ `~ ~+ `' ` O Cert~ed Fee t Fee d 5 i ~ ` ~ ~p ostmark ~ J~L ~~ 20 [3 p c, p Return Rece (Endorsement Requued) ~ 01 y _ ' CI Aesiricted Delivery Fae ¢i1.Lt1 (Endorsement Required) : z~ ~c `~ `pO `O~ O tL Total Postage & Fees C3 ROBERT BREEZE IRREVOCABLE TR ~ p VIILGINiABREFZETRUSTEE __- O 800 F 5T UNiT P-6 •----_____Y_ r' JUNEAU, AK 99801 ~• - ~ ~ ~ ~~ , ~ u7 ~ .•- .-. ~e ~ ~'+ m ~ , ~ Postage $ ~(f.'~f ` ` f °~ Certified Fee ~ L7 Return Receipt Fee ~ O (Endorsement Required) \ Q t Q Ju~o~t~art~~ , ~ y - i Restricted Delivery Fee C] (Endorsement R e uir d i Here ~ e ~OO O~ q e ) ~fJ ~ 1)t~ tU '~ ` ; '~PS ~ ~ Total Postage $ Fees o r ~7/1,7,12Cii#7 M1. POLARIS FUND L P C7 GO DRAPER FISHER & JURVETSON Q 2882 SAND HILL RD S _ TE 150 MENLO PARK CA 94025 .~ ~ ~ ~ ~ p ~~ ~ ..- . .•. m M ~- A ~~' . ~ Postage ~ i.41 $a tJ```f~j p.NCP{o~~ ` trt . ( r ~~ Certified Fee ~ (t5 ~ ' 1;~' ~ ' o O i t F R ~ ° P~trn_ g(tc2Q01 ~ '~ O p ee ece Return (Endorsement Required) r j, 5 `~ H~re ' p ,~~. •, O Restricted Delivery Fee (Endorsement Required) ~ t7 • t IQ : ~' • ~~ ~ ' ~ O O Q5 , -. N C, c~ ~ ~ Lt7/~~ f1J Total Postage & Fees . ~ / _ -~%- C7 ___ I`' LAB PROPERTIES INC ____ _______ ~ 591977TH AVENUE SE r. MERCER ISLAND, WA 98040 _,~_________. ..~ ~ .e cp ~, ra • _ _ E A S7} - ~ _ -- Qm.. Postage $ t . ~ i)~~ ~ . tll ~ - Certitied Fee tFee p'1 ~ cJ Retum Receip ~ Postmark ` J ~~~~r~ 2a~~ ~. ~ p (~h (Endorsement Required) ` ~, ~ ; > r ~` O Restricted Delivery Fee (Endorsement Regmred) ~ j3 , tjll `~ ' >O .7 S ..~. ' ~ ~-~i c~ i~~`-= n7i (1J fU Total Postage &Fees s ~ -'`- O . (~- WILLIAM G STROECKER ----------------- D PO BOX 71230 __. FAIRBANKS, AK 99707 ~ - m ,, .. ~, . • • ~y m j ~~ji;~. ~ $ `-~ lii)~i 0-- Postage . . Certified Fee Yl ~ J/ Postmark'-n p Retum Receipt Fee ~ \ • 1 ` _ ~ /f Here ~ 4_ ~- '" ! l7 (Endorsement Regwred) a - ~ JUi l ~ 3 2001 .- ~ Restricted Delivery Fee y13 ,1111 . ' (Endorsement Required) ; - Q &F ~+ •~ ' ~ ees ~ Tntal Postaoe . ~- r.,,PS - C] UNNERSITY OF WASHINGTON -__~ ~ BOARD OF REGENTS ~ ATTN SHANNON SCOTT ASSC DIR p ESTATE GIFT ACCEPTANCE ~ I`- 1200 FIFTH AVE #414 '- SEATTLE, WA 98101 Q- ~ ' ~ U tIl ~ • - Q~1 Ak ~ ,.. i ~. ` ' m Q" Postage $ . r',5 i i ~^~ f I u'1 Certified Fee ~ r ~Q07 T. ~ ~Ul~oliere -_ O ~ ~ ~.~ Retum Receipt Fee V (Endorsement Required) ,7 c ~ ~; , `,;'. w A : ~ ~ 0 O Restricted Delivery Fee +~it,Qii mantRequired) ~ r OD , } ~, rs S ~' ~ (Endotse ~~?1 ~ J- 1141{-'"~ tt713:;. ~ tU ~ ~ ~ TMaf Pnetane &Fees [`- SPC LLC ATT'N: K BATTLEY MANAGING AGT ----------•--_. ~ SOfl L ST STE 302 AK 99501-5910 NCHORAGE -----=-------- ~,.. , A ~ • .. • .: ~( Ak N~ t 5i - ~ R' Postage $ ~ ~--~~~°~! (Ij!! ~ Certified Fee 5 ),~~(3N '~~~~ ~ O Q Return Receipt Fee (Endorsement Required) , l 15 Postmark ~~ Here D 0 Restricted Delivery Fee (Endorsement Required) $il • Q) f _: t~1 ;'_~ ~Ut ~ 3 Zt>7 tU flJ TotalPostaae&Fees ,~i •_~•~~ ` -: ':~••?f`?fifl ~ THE MEDEMA FAMILY TRUST •~tlSpS ~ N DONNA M DOWLING CO-TRUSTEE °"`° ""~ O MAX D MEDEMA CO-TRUSTEE ~ GO SWALLING & ASSOCIATES _ ~ 3201 C STEET, SUITE 405 ------- ANCHORAGE, AK 99503 .~ • ~ ~ ~ ~ ..- .-. fU ~, • ...Cl _ - 3 ~ ~ . . ~ (~I .~1 Postage $ ~ `~ 11.~~ ~`~,~, - ~' Q ~ Certified Fee ~, ,• ; ~ ~ ~ ~ Reium Receipt Fee ~ . ~~ mred) t Re .~ JULP~~ea~OQ1 ~ g (Endorsemen ~ O Restricted Delivery Fee (Endorsement Required) $Il,lifl ~ c~ ~.~-~ `eT = . n"I rl.l Tntal Pnctaae R Fees .Q+ . r- A~ ll~ ~~~~~ `{~k~ (~ WILLIAM D RENFRO (ESTATE) r` MICHAEL C RENFRO PERSONAL REP ---------- ~ o 3940 ARCTIC BLVD STE 103 ---------- [~ ANCHORAGE, AK 99503 '• , iti ~ ~ ~ . ~ - - - ~ r~ ~1 ~. kI ~j),~~ - Rm-. Postage $ ~ II`~I •,.~~~~~N ~H~,S,->. :-~ Q ul Certified Fee J ~ 5 UC ' ~ f'~ "S p p Retum Receipt.Fee ~ _ • 5' (Endorsement Regmred) Postmark I~~{ 3~ ` , """' ~ ~T '~ r ~ ~ ~ Restricted Delivery Fee (Endorsement Required) $U .11U ~ ` ~-., c ~ i '' ~ ~ ~ , - (' fU i ~ ?i c ~~;~t}{i] I I flJ _ • Totai Postage &Fees . i ~ _ Q f'`- I WINTON C ARNOLD JR ~ 10425 N PALISADES WAY ~ BOISE, ID 83714 • >''~ .~ r y ~ ~1 ~ r-~ ~ ,.~ ~ ~ ~~ ,~ ,~t~5 ~ 1 ~ If ,~. ~ • June 8, 2007 • F O R E S T O i L C O R P O R A T I O N Mr: Sohn Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. 7`'' Avenue, Suite 100 Anchorage, Alaska 99501-3.139 Hand-Delivered Re: Application for either an Extension of Temporary Well Spacing Exemption or conversion to a Permanent Spacing Exception for die West Foreland #2 Well ("WF #2") Conservation Order No. 532 West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Forest Oil Corporation ("Forest") by this letter hereby submits this application, pursuant to Conservation Order No. 532, for approval by the Alaska Oil and Gas Conservation Commission ("AOGCC") to extend the spacing exception temporarily granted by the AOGCC pursuant to Conservation Order No. 532, Conservation Order No. 532 authorized Forest to apply for an extension of this temporary spacing exception or for a permanent spacing exception within 30 months after Forest completed the WF n2. This application is being filed within that time frame. Forest respectfully requests that the AOGCC approve an extension of six (6) months under die same terms and conditions of Conservation Order No. 532. tf the AOGCC determines that a hearing is required prior to approval of this request for an extension, Forest respectfully requests that at said hearing the AOGCC also allow consideration of a request by Forest to convert the temporary spacing exception to a permanent spacing exception. Forest wishes to advise the AOGCC dtat the hvo adjacent landowners who comprise the West Foreland Undefined Gas Pool, the State of Alaska and the Bureau of Land Management on behalf of Cook Inlet Region, ]nc., have agreed with Forest as to how the production from the WF #2 well should be allocated. However, the landowners have yet to approve a Royalty Sharing Agreement submitted to them by Forest on February 1, 2007 to evidence that agreement. Consequently, this application for an extension is required. Forest is hopeful that such an agreement will be executed within the next six months or, if the AOGCC schedules a hearing conceming this request, by the time a hearing takes place. If dtere are any questions, or should you need additional information, conceming this request and application please contact me at (407) 868-2112. Sincerely yours, FOREST OIL CORPORATION --,. f7 . 1) -~ Jim Arlington ~ Land Manager cc: Cook Inlet Region, Inc: Bureau of Land Management. Alaska Department of Natural Resources, Division of Oit & Gas Pine ] of 1 • --°~ .--. ~ ,: - ~ ~~ t {: `~ 4 y~ ]~ ~®t ~ ~ ~Y Hand Delivered June 13, 2007 Leonard C. Gurule Senior Vice President Forest OiI Corporation 310 K Street, Suite 700 Anchorage, AK 99501 SARAN PAUN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907j 279.1433 FAX (907j 278-7542 RE: Application for Either an Extension of the Temporary Well Spacing Exemption Ora Permanent Spacing Exemption for the West Foreland #2 WeII; Conservation Order No. 532; West Foreland Field, West Foreland Undefined Gas Pool Dear Mr. Gurule: By letter dated June 8, 2007, the Alaska Oil and Gas Conservation Commission ("Commission"} notified Forest Oil Corporation ("Forest") concerning its non-compliance with certain provisions of Conservation Order No. 532 ("CO 532"), relating to the West Foreland #2 gas production welt ("WF #2"): Order No. 1 (granting Forest a temporary exception to the spacing requirements of 20 AAC 25.055 to allow for. drilling and operation of WF #2); and Order No. 3 (requiring that Forest provide the Commission certain geologic and geophysical data). In response, Forest requested an informal conference, which was held at the Commission on 3une 12, 2007. At the informal conference, Forest represented that damage to the reservoir might result if WF #2 was shut in, as directed by the Commission's June 8, 2007 letter. Forest also represented that it has reached a tentative agreement with the State of Alaska, Department of Natural Resources, Division of Oil. and Gas ("DNR") and the United States Department of the Interior, Bureau of Land Management ("BLM") on the terms of a compensatory royalty agreement to govern the allocation of production from WF #2. Finally, Forest represented that it intends to comply fully with all of the requirements of CO 532, including, but not Limited to, the requirement to maintain the escrow account mandated by Order No. 4. Based on the foregoing, the Commission: scheduled a public hearing at 9:00 a.m. on July 24, 2007, at the Commission, to consider Forest's application for an extension of the temporary exemption. (granted in • • CO 532) from the spacing requirements of 20 AAC 25.055, or, alternatively, for a permanent exemption from those requirements. 2. requires that, on or before July 16, 2007, Forest provide the Commission: (a) a letter of non-ob}ection, signed by DNR and BLM, to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption; and (b) evidence that notice of Forest's application and the hearing was sent to alt interested parties, including all royalty and overriding-royalty owners. 3. requires that, on or before July 16, 2007, Forest provide the Commission all technical analyses for the shallow gas-producing reservoir at about 8500' depth within WF #2 that Forest presented to BLM and DNR in support of the proposed allocation (e.g. the June 28, 2003, "WF #1 well Production Allocation Recommendation" of Paul Winslow). 4. cancels the directive to shut in production at WF #2, and confirms that continued production from this well is auth~zed, pending further order of the Commission. Enclosure cc: Commissioner Foerster AS 31.tI5.UI30 provides that within 2D days uJler receipt orwritten notice ofthc entry of nn order, a person alrected by it may file with the Commission an appliczclion fur n:hcaring. A request fur rcheuring rnust be received by'}:3t) I'M on the 23rd clay following the date ofthc order, or neat workingday ifa ho)iday or weekend, io be timely filed. 'nc~ Cmnmission shall grant ur refirsethe application in whole or in prrt within 10 days. 'nre Commission can rclusc wt application by not acting on ii within t}tc ID-day period. An affected person has 30 days from the dale dre Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the ftnal ard~v of the Commission, to apps) the decision to Superior Court Whcrc a request for rehearing is dcniccf by nonnction oftlrc 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 aHer the application For rehc:uinb was filed). • • Notice of Public Hearing STATE OF ALASKA Alaska Oii and Gas Conservation Commission Re: f The application of Forest Oil Corporation ("Forest") for an Extension of Temporary Well Spacing Exemption or alternatively conversion to a Permanent Spacing Exception far the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532. Forest, by letter dated June 8, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on that same day, requests an extension of exceptions to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the West Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. West Foreland #2 is a deviated well bore. The surface location of the well is 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian {"SM"}. The bottom hole location of the well is 760 feet from the north tine and 1,146 feet from the east line of 2I, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for July 24, 2007 at 9:00 a.m. at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7''' 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 p.m. on June 29, 2007. If a request for a hearing is not timely filed, the Commission may issue 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 protests or comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7`" Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 p.m. on July 16, 2007, except that, if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the Juiy 24, 2047 hearing. If .you are a person with a disability comment or attend the public h 'ng, a: July 19, 2007. may need special accommodations in order to tact Jody Colombie at (907) 793-1221 before Chair Published Date: June 14, 2007 ~1Q • Re: APPLICATION OF FOREST OIL CORPORATION for an order granting an exception to the spacing requirements of 20 AAC 25.055 to allow for the drilling and operation of the West Foreland #2 gas production well. Conservation Order No. 532 ~ West Foreland Field ~ West Foreland Undefined Gas Pool ~ July 16, 2007 On July 16, 2007, I, Jody Colombie contacted Jim Arlington of Forest Oil, Temple Davison of State of Alaska, Department of Natural Resources; Melissa Aisworth of Bureau of Land Management; Kim Cunningham, Cook Inlet Regional Incorporated to inform the parties that the hearing on July 24, 2007 at 9:00 am was being continued on July 25, 2007 at 10:00 am. ~~ Page 1 of 2 Colombie, Jody J (DOA) From: Norman, John K (DOA) Sent: Friday, July 13, 2007 9:15 AM To: Colombie, Jody J (DOA) Subject: FW: WF #2 well spacing exemption extension For file From: Davies, Stephen F (DOA) Sent: Thursday, July 12, 2007 4:17 PM To: Jim Arlington Subject: RE: WF #2 well spacing exemption extension Jim, I can't provide suggestions beyond those already given (attached below). Regards, Steve Davies AOGCC From: Jim Arlington [mailto:JDArlington@forestoil.com] Sent: Wednesday, July 11, 2007 2:47 PM To: Davies, Stephen F (DOA) Cc: Birnbaum, Alan J (LAW) Subject: RE: WF #2 well spacing exemption extension Steve, So I guess you're saying that the draft letter of non-objection I sent Alan to review for DNR & BI M to sign does not clearly state what you indicated below. I took the language directly from item #2 of the AOGCC letter to us dated Tune 13, 2007. What I asked DNR &BLM to agree to is as follows: The Alaska Department of Natural Resources, Division of Oil & Gas ("DNR') and Bureau of Land Management ("BLM') each hereby provide its consent and non-objection to an extension of the temporary spacing exemption granted by the Alaska Oil and Gas Conservation Commission ("AOGCC') in its Conservation Order No. 532 and Forest's application for an extension or alternatively, for a permanent exemption from the spacing requirements of 20 AAC 25.055. So we get this right, it would be very helpful if you could just amend the language above to include what you want DNR &BLM to agree to if it is different than what I stated above, which l thought had correctly captured the language contained in the AOGCC's Tune 13g' letter. "THANKS. Tim 7/13/2007 Page 2 of 2 -----Original Message----- From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, July 11, 2007 2:03 PM To: Jim Arlington Subject: WF #2 well spacing exemption extension Jim, I'm writing in response to your request to Alan Birnbaum concerning Commission requirements for the West Foreland No. 2 letter of non-objection. There are two: 1. The letter ofnon-objection for continued operation of the West Foreland #2 gas production well must be signed by appropriate representatives from the United States Bureau of Land Management and the Alaska Department of Natural Resources, Division of Oil and Gas. 2. The "consent" portion of the letter should clearly state that those two agencies consent to Forest's June 8, 2007 application for another temporary extension or a permanent extension of the exceptions to the drilling unit and spacing requirements of 20 AAC 25.055 to allow the well to continue to operate under terms imposed by the Commission. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission 7/13/2007 ~8 • Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 ~~~IVED ~uN 2 o tool ~iaska Oil & Gas Cnns. Commission Anchorage ;; 1~?an PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES fY2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 253482 06/15/2007 STOF0330 $225.76 $225.76 $0.00 $0.00 $0.00 $0.00 $0.00 $225.76 STATE OF ALASKA THIRD JUDICIAL DISTRICT Christine Clark, 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 of in excess of the rate charged private individua~s~j Subscribed and s~nrorn to xr?e before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska , MY ~ - ttl!(!t~'r~! ;'~ .- ti s~ww~ ~~~J f!~'))JI{1 i1i,1~3 ~ Notice of PubNC Heathlg Alaska 011 and i tin erv Saq n Commisglon Re: The application of forest OiLCOrporation ("Forest") for an Extension of Temporary Well Spacing Exemption or alternatively corroersion tfi a PermanentSpacinBB.Exception for the West Foreland #2 gas production well bore in accor dance with the drihing ugit and spacing require menu of 20 AAC 25.0 Sand the requirements of ConservadonOrder532. Forest, by IetteCdated Junes, 2007 and received ,: by the Alaska bil and Gas Conservation Commission (' Commission"Yonthat same day, requests an eaten- sion of exceptidns to the drilitng unit and spacing re- quirements of 20 AAC 25.055 to allowcorrtinued op- . erauon of the west. Foreland #2 gas production weU at a location within-1,500 feet.of the property {ine be- tween Federal LeeSBA-035017 and State-lease ADl-359112, anp within the same governmental sea tion as, and less than 3,000 feet from, a wel! capatile of protlucing from the same gaspoW. west Foreland #2 is a deviated well bore. The surfacetoration of the well is 886 feet from.the south lino ahtl'571 feet from tha uAet iinc of cn~H,.., a,.. antl 1,146 feet from the east line of 21, 708N R14W, SM, The Commission has tentativety scheduled a pub: lic hearing on this application for Jury 24, 2007 at 9:00 a.m. at the offices of the Alaska Oil and Gas Conserva- tion Commission at 333 West 7th Avenue, Smte 100 i anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by fdmg a `• written request with the Commission no later than 4:30 p:m. on June 29, 2007. d a request fora hearin is not timely fded, the Commission may issue an order without a hearng. To i learn if the Co mission will hold the public hearing, ' please caU (90793-1221. In addition, a Person may submit written protests or comments regard[ng this application to the Alaska ' Oil and Gas Conservation Commission at 3~3 West 7th Avenue, Suite 100, Anchorage, Alaska 99501: WrRten comments must be received no later than 4:30 p.m. on July 16, 2007, except that,-!f the'COmmissiQn de- cides toehold a ublic hearing writterrprotestdr comments must ~e received noglater than the COpdu- sion of the Jury 24, 2007-hearing. If you are a persdn with a disability who may need- special accommgdations in order to comment or at- tend the public hearingg,, please contact Jody Colom- hie at (907) 793-1221. beftxe July 19, 2007. - John K. Norman, Chair Commissioner PUblish:June 15, 2007 ~~ STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE A 0.02714036 /`1 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. June 12 2007 ° "' Anchorage, AK 99501 907-793-1238 PHONE - PCN DATESADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Arichora e AK 99514 g ~ June 14, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF /aLL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARn 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR 01ST LIQ ~ OS 02140100 73451 2 REQUISITIONED Y: DIVISION APPROVAL: ~~ 02-902 (Rev. 3/94) ~ ~ `r Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM ~ ~~~~~ Anchorage Daily News JUN 2 ~ ? ~? ~' 7 ~n~~z"°' Affidavit of Publication 1001 Northway PRICE AD # DATE PO ACCOUNT PER DAY 252659 06/14/2007 021714036 STOF0330 $212.48 $212.48 STATE OF ALASKA THIRD JUDICIAL DISTRICT Drive, Anchorage, AK 99508 Alaska Oil & Gas Cons. Cnfnrr-is.•fi~s-s Anchorage OTHER OTHER OTHER OTHER OTHER GRAND CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL $0.00 $0.00 $0.00 $0.00 $0.00 $212.48 Christine Clark, 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 F";.,~*o ;,,r1;.,;.7.,~1~ Subscrib d and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ ~, , ... ; ; ~I;*~ ,,~ .. ,,,. ~~ ~~„~~' ~~~'f~fll~J1~)~11 ,j~\~~, k~`~ c ~,5 ~° Notice of Public Nearing ' STATE OF ALASKA ;Alaska Olland bas Conservation Commission Reahe application of Forest oil Corporati~ ("Forest") for a spacing exception tq allow the dn!!mg and operation of the West Foreland #2 gas pgroduction <' spec rig eequ)r merits of 20 AAC 25 058. unit and Forest, by letter- datetl July 2, 2004 and received by the Alaska oil and Gas Conservation Commission ~ ("Commission") on that same:day, requests exception to the drilling unit and spacing requirements of 20 AAC 25.055 to allow drilling and o erauon of the West Foreland #2 as production weft bore to a location within 1,500 feet of the property line between federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less .than 3;000 feet from, a well capable of producing from the same gas pool West Foreland #2 will be drilled as a deviated well bore. The sufface Ideation of the well is 880 feet frofn ' the south-Hne and 631 feet from the east line of Sec- tioh 21, T08N, R14E, Seward Meridian ("SM"). The roposed bottom holelocation of the well is 7,365 feet from the north line and 1;105-feet ftom the east. ' line of 21, T08N, R1dE, SM. The Commission ha,cation forlAugustl7 ZOO4 at lie hearing on this.app 9:00 am atthe offices of the Alaska Oil and Gas Con- a servatidn Commission at 333 West 7th Avenue, Suite 100,-Anchorage, Alaska 99501: A person may re- quest that the tentatively scheduled hearing be held byfihng a written request wtth the Commission no later than 4:30 pm oh July 29; 2004. If a request for a hearin is.ndt timery filed; the Commission may co oi,earn~ f the Commission well without a hearing". hold the putihc hearing, please Ca11793-1221: rn addition, a person may submit written comments. regarding this application tq the Alaska oil and Gas ', Conservation Commission at 333 West 7th Avenue, I -Suite 10Q Anchorage, Alaska 99501. Written com- gustt13 2004 exCeptt~hat if the Gommiss on decides to hold a public hearing, written protest orcomments must be received no'later than at the conclusion of the August 17; 2004 hearing. If you are a person with a disability who-may need special accommodations m order to comment or to b eea ~ 93- 2211~before nA$ugust 12, 2004. ~ddy Colom• John K. Norman, Chair- Commissioner Publish: June 14, 2007 • ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDE~O., CERTIFIED C CO O /t, 0.02714036 !'1 ORDER HED PY F AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTA ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOU+CC AGENCY CONTACT DATE OF A.O. R 333 West 7~' Avenue Suite 100 ° . Anch~rage_ AK 99S(11 PHONE PCN "'I 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News June 14, 2007 PO Box 149001 hora e AK 99514 A THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ric g ~ ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United States °f America .REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH 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 advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of , 2007, 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 2007, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department ~ PO Box 129 Barrow, AK 99723 ',~ V V~ Public Notice West Foreland #2 Subject: Public Notice West Foreland #2 From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Mon, 18 Jun 2007 14:33:43 -0800 To: undisclosed-recipients:; BCC: Christine Hansen <c.hansen@ogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, trmjrl <trmjrl@aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <Shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>,DaveRoby <dave Toby@admin.state.ak.us>, bbritch <bbritch@alaska:ne~, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'doimell@veco.com>, "Randy L. Skillern" <Ski11eRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BPcom>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.corn>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz ~Mikel.Schultz@BP`.com>, "Nick W. Glover" <G1o~erNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <P1attJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@ci.net>, Barbara F Fu}lmer <barbara.f.fullmer@conocophillips.com>, doug_schultze <doug_schultze@toenergy.com>, Hank Alford<hank.alford@exxonmobl.com>, Mark Kovac <yesnol@gci.net~, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fredateece@statead.us> rcrotty<rerotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, BritLively <bl@mapalaska.com>, jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@alaskadc:org>, tablerk <tabler@unocal.com>, Brady <brady@oga.org>,Brian Havelock <beh@dnr.state.ak.u~, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <johna.haworth@exxonrnobil.com>, marty <nlarty@kindustrial.com>, ghammons <ghammons@aol.com>, rmelean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200~aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <todd.durkee@anadarkocom>, Gary Schultz <gary_schultz@dnratate.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul. Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland.:<copelasv@bp.com>, Kristin Dirks <kristin dirks@dnr.state.ak.us>, Kaynell Zeman <kj,zeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bi11 Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick a?mms.gov>, Brad McKim <mckimbs@BP.com>, James Scherr <james.scherr@mms.gov>, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, Crockett@aoga.org; Tanlera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon:Goltz@conocophillips.com>, Roger Belmar roger.belman@conocophllips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriary@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Gary Rogers gary_rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <klyons@otsintl.com>, Steve Lambert <salamben@unocal.com>, Joe Nicks <news@radiokena.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bi11Walker <bill-wwa@ak.net>, Paul Decker <paul_decker@dnratate.ak.us>, Aleutians East Borough <admin@aleutianseast.org>, Marguerite krerner <marguerite_kremer@dnratate.ak.us>; Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoil.com>, Cammy Taylor <cammy_taylor@dnr.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <Steve_davies@admin.state.ak.us>, Keith Wiles.<kwiles@marathonoiLcom>, Deanna Gamble.<dgamble@kakivk.com>, James B Regg 1 of 2 6/18/2007 2:37 PM Public Notice West Foreland #2 <jim_regg@admin.state.ak.us>, Catherine P Foerster <Cathy_foerster@admin.state:ak.us>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <Laura_silliphant@dnr.state.ak.us>, David Steingreaber <davd.e.steingreaber@exxonmobil.com>, akpratt@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve_moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple_davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <taggoner@rginc.com>, John Spain <jps@stateside.com>, Cody Rice <Cody_Rice@legis.state.ak.us>, John Garing <garingJD@bp.com>, Harry Engel <engelhr@bp.com>, Jim Winegarner <jimwnegarner@brooksrangepetro.com>, Matt Rader <matt rader@dnr.state.akus>, carol Smyth <carol.smyth@shell.com>, Arthur C Saltmarsh <art saltmarsh@admin.state.ak.us>, Clu~is Gay <cdgay@marathonol.com>, fours@mtaonline.net, Rudy Brueggeman <rudy.brueggemann@nternational.gc.ca>, Cary Carrigan <cary@kfgd.com>, Sonja Frankllin <sfranklin6@bloomberg.net>, Mike Bill <Michael.Bi11@bp.com>, Walter Quay <WQuay@chevron.com>, "Alan Birnbaum <\"\"Alan J Birnbaum \">" <alan birnbaumV"@law.state.ak.us>, RandallKanady <Randall.B.Kanady@onocophillips.com>, MJ ~~ Loveland <N1878@conocophillips.com>, Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Jody Colombie <jody_Colombie@admin.state.ak.us> Jody Colombie <jody Colombie cr,admin.state.ak.us> ', Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf West Foreland Content-Encoding: base64 '~ 2 of 2 6/18/2007 2:37 PM I Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Forest Oil Corporation ("Forest") for an Extension of Temporary Well Spacing Exemption or alternatively conversion to a Permanent Spacing Exception for the West Foreland #2 gas production well bore in accordance with the drilling unit and spacing requirements of 20 AAC 25.055 and the requirements of Conservation Order 532. Forest, by letter dated June 8, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on that same day, requests an extension of exceptions to the drilling unit and spacing requirements of 20 AAC 25.055 to allow continued operation of the West Foreland #2 gas production well at a location within 1,500 feet of the property line between Federal Lease A-035017 and State Lease ADL-359112, and within the same governmental section as, and less than 3,000 feet from, a well capable of producing from the same gas pool. West Foreland #2 is a deviated well bore. The surface location of the well is 886 feet from the south line and 571 feet from the east line of Section 21, T08N, R14W, Seward Meridian ("SM"). The bottom hole location of the well is 760 feet from the north line and 1,146 feet from the east line of 21, T08N, R14W, SM. The Commission has tentatively scheduled a public hearing on this application for July 24, 2007 at 9:00 a.m. at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7t'' 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 p.m. on June 29, 2007. If a request for a hearing is not timely filed, the Commission may issue 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 protests or 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 p.m. on July 16, 2007, except that, if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the July 24, 2007 hearing. If you are a person with a disability comment or attend the public he ring, a~ July 19, 2007. may need special accommodations in order to tact Jody Colombie at (907) 793-1221 before Chair Published Date: June 14, 2007 ~ 7 C F O R E S T O I L C O R P O R A T 1 0 N - .~f~~~~~~~~~~~ . ~ ,~~~~ ~~0 DECEIVED Y ,,~/ nv~yzr.~~~z~~, C~~~x~,rTZ 99507 • ~907~.~58-8600 • ~907~ Ns8-86o~ ~~~:x~ JUN 1 3 2007 Alaska Clil & Gas Cons. Commission June 13, 2007 Anchorage Mr. John Norman, Chair Hand-Delivered Alaska Oil and Gas Conservation Commission 333 W. 7`l' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Conservation Order No. 532; Letter ofNon-Compliance West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Let me first convey my appreciation for the informal conference you scheduled yesterday morning with my staff and me and the opportunity to discuss your letter of June 11, 2007 to Forest Oil Corporation ("Forest"). At the conclusion of yesterday's meeting it was my understanding that the Alaska Oil and Gas Conservation Commission ("AOGCC") would issue a letter to Forest setting aside your directive to shut in production from the West Foreland No. 2 gas production well ("WF #2"). As yet Forest has not received such a letter from the AOGCC. Please be advised that Forest has not shut in production from the WF #2 in anticipation of receiving such letter, which we understood would be issued yesterday. I would appreciate receiving confirmation from the AOGCC as soon as possible of Forest's understanding that continued production from the WF #2 is authorized. Respectfully yours, FOREST OIL CORPORATION .~ ~~ C Leonard C. Gurule Senior Vice President Page 1 of I ~6 SAR,4H PALIN, GOVERNOR Hand Delivered June 13, 2007 Leonard C. Gurule Senior Vice President Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 RE: Application for Either an Extension of the Temporary Well Spacing Exemption Ora Permanent Spacing Exemption for the West Foreland #2 Well; Conservation Order No. 532; West Foreland Field, West Foreland Undefined Gas Pool Dear Mr. Gurule: By letter dated June 8, 2007, the Alaska Oil and Gas Conservation Commission ("Commission") notified Forest Oil Corporation ("Forest") concerning its non-compliance with certain provisions of Conservation Order No. 532 ("CO 532"), relating to the West Foreland #2 gas production well ("WF #2"): Order No. 1 (granting Forest a temporary exception to the spacing requirements of 20 AAC 25.055 to allow for drilling and operation of WF #2); and Order No. 3 (requiring that Forest provide the Commission certain geologic and geophysical data). In response, Forest requested an informal conference, which was held at the Commission on June 12, 2007. At the informal conference, Forest represented that damage to the reservoir might result if WF #2 was shut in, as directed by the Commission's June 8, 2007 letter. Forest also represented that it has reached a tentative agreement with the State of Alaska, Department of Natural Resources, Division of Oil and Gas ("DNR") and the United States Department of the Interior, Bureau of Land Management ("BLM") on the terms of a compensatory royalty agreement to govern the allocation of production from WF #2. Finally, Forest represented that it intends to comply fully with all of the requirements of CO 532, including, but not limited to, the requirement to maintain the escrow account mandated by Order No. 4. Based on the foregoing, the Commission: 1. scheduled a public hearing at 9:00 a.m. on July 24, 2007, at the Commission, to consider Forest's application for an extension of the temporary exemption (granted in ~ ~ CO 532) from the spacing requirements of 20 AAC 25.055, or, alternatively, for a permanent exemption from those requirements. 2. requires that, on or before July 16, 2007, Forest provide the Commission: (a) a letter of non-objection, signed by DNR and BLM, to Forest's application for an extension of the temporary exemption or, alternatively, for a permanent exemption; and (b) evidence that notice of Forest's application and the hearing was sent to all interested parties, including all royalty and overriding-royalty owners. requires that, on or before July 16, 2007, Forest provide the Commission all technical analyses for the shallow gas-producing reservoir at about 8500' depth within WF #2 that Forest presented to BLM and DNR in support of the proposed allocation (e.g. the June 28, 2003, "WF #1 well Production Allocation Recommendation" of Paul Winslow). 4. cancels the directive to shut in production at WF #2, and confirms that continued production from this well is Enclosure cc: Commissioner Foerster pending further order of the 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 foc rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or nest 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 refixses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order ofthe 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 tiled). ~~yy~~++ ~7 June 23, 2003 Jim Arlington Forest Oil Corporation 310 K Street, Suite 700 Anchorage AK 9901 Re: West Foreland # 1 well, West Foreland Field Dear Mr. Arlington: ~R,a~vx ~+. ~wuncro~vssr~, cov~s~n~oc~ 333 W T" AVENUE. SUITE 100 ANCHORAGE, ALASKA 995C'-3`:'39 PHONE (907) 279-1433 FAX (907) 276-7542 As you know, in response to your letter of June 16, 2003, the Commission has tentatively scheduled a hearing on July 25, 2003, to consider making the temporary spacing exception for the above-referenced well permanent and approving an allocation of production between the affected leases. Your letter also requested that the Commission extend the temporary spacing exception that expires July 1, 2003, until the time that the Commission issues its order approving the allocation and providing for disbursement of funds from the escrow account that is required under Conservation Orders Nos. 450 and 450-A. The procedures for granting spacing exceptions include public notice and opportunity for hearing. In the past the Commission has considered that these procedures also apply to the extension of a previously granted temporary exception, as occurred in Conservation Order No. 450-A. It is regrettable that your current application was not submitted in time to allow for the notice and hearing process to be completed before the temporary exception is due to expire. Please ensure that future applications for Commission action take adequate account of the time required for orderly compliance with applicable administrative procedures. In this instance, the escrow arrangements relating to production from the West Foreland # 1 well, which will continue in effect under the requested extension, should protect the interests of those who might be affected by an extension of the temporary spacing exception. In addition, you have indicated that the parties that are entitled to personal notice under 20 AAC 25.055(d), namely the Department of Natural Resources ("DNR") and the Bureau of Land Management ll"eat F~re[and = 1 ~I1 ~~t ~±}z~elanti i= iel June Z3. ?003 Pane ~ of ~' ("BL~;~I'°~~, consent to the requested extension. ~ccordingl~~_ if }`ou submit to the Commission written statements from DNR and BLM signifying their consent or non-objection to the requested extension, the Commission will consider that substantial compliance has been performed with respect to the applicable procedures for notice and opportunity for hearing as to the request for an extension of the temporary spacing exception. These statements should be submitted as soon as possible but in no event later than June 30, 2003. Sincerely, ~~~~~ ,,~'~i v~ ~:~~~ ~~ `Sarah H. Palin ~\` Chair cc: Mr. Gary Carlson Vice President Forest Oil Corporation ~~ r STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Informal Review West Foreland Field West Foreland Undefined Gas Pool June 12, 2007 at 9:30 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) -.i'~ ~4w1~ ~~ ~ - ~~f~--o,~~ ~' ~ 2~~ ~ Yes ~ i s r~ 1 ~4 • Y ~ • June 11, 2007 r F O R E S T O I L C O R P O R A T I O N .370 ~~~C=`_>~~s~~~f • ~~%r~~e X00 n52,~d~ c~u1-~r~~, CAS ~~~r~~~ 9950 ~ ~J07) ?.~8-8600 • ~90%~ ?5"8-860/ ~C~/a.a) Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. 7t1i Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Conservation Order No. 532; Letter ofNon-Compliance West Foreland Field; West Foreland Undefined Gas Pool Hand-Delivered DECEIVED ~ur~ 1 1 2on7 :Alaska Oil & Gas Cons. Commission Dear Commissioner Norman: Anchorage I am in receipt of your hand delivered letter to me dated today, June 11, 2007, wherein Forest Oil Corporation ("Forest") is directed to shut in production from the West Foreland No. 2 gas production well ("WF #2") and is admonished for failure "to comply with Rule 3 of CO 532". As you are no doubt aware by now, Forest has scheduled an informal conference with the Alaska Oil and Gas Conservation Commission ("AOGCC") tomorrow morning to discuss why the directive to shut in production from the WF #2 is unnecessary and how Forest has complied with Rule 1 and Rule 3 of Conservation Order No. 532 ("CO 532"). I have attached hereto a copy of a Forest Data Transmittal form listing geophysical, geological and production test information for the WF #2 that was submitted to the AOGCC and received by the AOGCC on January 13, 2005 in compliance with Rule 3 of CO 532. Further, there has been monthly production data submitted to the AOGCC since production commenced from the WF #2. Therefore, Forest has been in compliance with CO 532 and did "provide the Commission geologic and geophysical data and the results of the production pertinent to establishing (a) whether hydraulic communication exists between WF # 1 and WF #2 in the 9,200-foot sand; and (b) what proportions of the gas reserves producible from WF #1 and WF #2 underly Lease A-035017 and Lease ADL 359111 (sic)". Additional information will be presented and discussed tomorrow concerning Rule 1 of CO 532. Forest looks forward to meeting with you tomorrow concerning its request and application for an extension of the temporary spacing exception granted pursuant to CO 532. Respectfully yours, FOREST OIL CORPORATION fpf ~r \ V Vim... V Jim Arlington Land Manager Attachment: Forest Oil Data Transmittal form addressed to Lisa Weepie/Howard Oakland at AOGCC dated 1/12/2005. Page 1 of 1 ~. .. ~ , Forest Oil Corporation Alaska Division 310 K Street, Suite 700 Anchorage, Alaska 99501 Phone: (907) 258-8600 DATA TRANSMITTAL Fax.• (907) 258-8601 Date: January 12, 2005 To: Lisa Weepie/Howard Oakland AOGCC From: Barbara Kruk Forest Oil Corporation 333 W. 7th Ave, Suite 100 310 K Street, Suite 700 Anchora e, AK 99501 Anchora e, AK 99501 Phone: (907) 279-1433 Phone: (907) 868 - 2113 FAX: (907) 258 - 8601 TRANSMITTAL DESCRIPTION JAN 2005 Well data for WestForeland #2, API#50-133-20542-00 Is~:~ t~~9 ~~$ Con~• ~~~;~°~' Item No. Qty Description ~n~ 4r8 1 1 Well completion report (AOGCC form 10-407), with attachments 2 1 Copy of daily drilling reports or a summary report of daily drilling. (9 pages) 3 1 List of formations and other geologic markers encountered, and their depths MD and TVD 4 1 List of depth and formation name for oil and as shows 5 1 Summary of production tests and formation tests. (4 pages) 6 1 Copy of Drill Stem Tests and Production Test Data and Charts. Surface Well Testing Report (34 pages) Pressure Data (3 pages), Pressure Data (20 pages) 7 1 Copy of geochemical and formation fluid analyses and reports, if available. SGS -Laboratory Analysis Report (14 pages) EG&G Chandler Engineering Report - 9200 Sample #1 (2 pa es) EG&G Chandler En ineering Report - 9200 Lower Sample #2 (2 pages) EG&G Chandler En ineering Report - 8500 Sample #3 (2 pages) _ EG&G Chandler Engineering Report - 8500 Sample #4 (2 pa es) 8 1 Copy of all open flow potential test reports and report attachments, (AOGCC form 10-421) AOGCC from 10-421 for West Foreland #2 (WF#2-8500MD) (4 pa es) AOGCC from 10-421 for West Foreland #2 (WF#1-9200TVDSS) (4 pages) 9 1 Paper and digital copies of all directional surveys 10 1 Paper and Sepia copy of final composite mud or litholo y log and report. 11 1 Digital version of well to sin LAS format and di ital version of directional surveys in ascii Transmittals AOGCC.xIs/WF#2_011205 Date Modified:1/12/2005 bk ~:.~ Forest Oil Corporation ~.. - Alaska Division ~, ~ , 310 K Street, Suite 700 Anchorage, Alaska 99501 Phone: (907) 258-8600 Fax: (907) 258-8601 DATA TRANSMITTAL Date: January 12, 2005 Item No. Qty Description Well WestForeland #2, API#50-133-20542-00 12 9 Paper and Sepia cop y of all Logs run (9 paper copies 6 sepia's (denoted by s in qty column) Log Date Run# Bottom Log Interval Top Log Interval Description 11/07/04 2 10,378' 3,160' Modular Dynamic Tester, MDT (Large Diameter Probe) - GR S 11/06/04 2 10,642' 7,940' Spectral Gamma Ray Log, NGT S 11/06/04 2 9,412' 7,620' Spectral Gamma Ray Log, NGT, TVD Log S 11/06/04 2 10,700' 7,940' Dipole Shear Sonic Tool, DSI-GR S 11/06/04 2 9,420' 7,620' Dipole Shear Sonic Tool, DSI-GR, TVD Log s 11/19/04 2 5,140' 11,099' Cement Bond Log, DSLT/GR/CCL S 11/20/04 2 5,110' 10,790' Packer Set Record, Halliburton Packer & TCP Guns 11/06/04 1, 2 9,440' 3,003' Quad Combo, PEX-DSI-AIT, ND Log 11/06/04 1, 2 10,690' 3,003' Quad Combo, PEX-DSI-AIT 13 2boxes All Drill Cuttings Box1: Cutting Samples WF#2 -Depth: 6,180' - 10,500' MD Box2: Cutting Samples WF#2 -Depth: 10,500' - 11,387' MD 1 CD -Contains digital files for Item 10 (Mudlo & Well Report) File Listing for CD containing Item 10. (2 pages, cd_mudlog,list) 1 CD -Contains digital files for Items 2, 5, 6, 7, and 8 listed above File Listing for CD containin Items 2, 5 6, 7, and 8. (1 page, cd1.list) 1 CD -Contains digital files for Item 11 listed above File Listing for CD containing Item 11 (1 page, cd2.list) CONFIDENTIAL DATA Transmittals_AOGCC.xIs/WF#2_011205 Date Modified:1/12/2005 bk ~3 RE: Conservation Order No. 532 Subject: RE: Conservation Order No. 532 From: Jim Arlington <JDArlington@forestoilcom> Date: Mon, 11 Jun 2007 15:08:21 -0800 To: jody_colombie@admin.state.ak.us CC:~Leonard Gurule <LCGurule@forestoiLcom>, Paul Winslow <PMWinslow@forestoiLcom>, Lamy. Casarta <LJCasarta@forestoiLcom>, Rick Schelin<RWSchelin@forestoiLcom>, alan birnbaum@law.state.ak.us Dear Ms. Columbie, As you requested, I called Alan Birnbaum with the Attorney General's office who scheduled a meeting for an informal. conference with the AOGCC Commissioners tomorrow morning, 6/1.2/2007, at 9:30 A.M. at the AOGCC office. At this time, l expect that in addition to me the following Forest Oil personnel will be in attendance at tomorrow's informal conference: Larry Casarta, Leonard Gurule, & Paul Winslow. I also expect that Forest's Deputy General Counsel, Rick Sehelin, will participate via teleconference. Rick. was engaged. in a discussion by telephone with Alan. anal. me this afternoon regarding this matter. Respectfully yours, Jim Arlington -----Original Message----- From: Jim Arlington Sent: Monday, June 11, 2007 11:56 AM To: Jody Colombie (Jody_colombie@admin.state.ak.us) Cc: Leonard Gurule; Paul Winslow; Larry Casarta Subject: Conservation Order No. 532 Dear Ms. Columbie, I am in receipt of your hand delivered letter to me dated today, June 11, 2007, signed by AOGCC Chairman John Norman wherein Forest Oil Corporation ("Forest") is directed to shut in production from the West Foreland No. 2 gas production well ("WF #2"). Forest respectfully requests an informal conference with the AOGCC commissioners tomorrow to discuss why the directive to shut in production from the WF #2 is unnecessary and how Forest has complied with Rule 1 and Rule 3 of Conservation Order No. 532 ("CO 532"). Respectfully yours, Jim Arlington 1 of 1 6/11/2007 4:06 PM Conservation Order No. 532 subject: Conservation Order No. 532 From: Jim Arlington <JDArlington@forestoil.com> Date: Mon, 11 Jun2007 11:55:52 -0800 To: jody_colombie@admin.state.ak:us CC: Leonard Gurule <LCGurule@forestoil:com>, Paul Winslov~~<F1VIWinslow@orestoil.com>, Larry Casarta <LJCasarta@forestoiLcom> Dear Ms. Columbie, I am in receipt of your hand delivered letter to me dated today, June 11, 2007, signed by AOGCC Chairman John Norman wherein Forest Oil Corporation ("Forest") is directed to shut in production from the West Foreland No. 2 gas production well ("WF #2"). Forest respectfully requests an informal conference with the AOGCC commissioners tomorrow to discuss why the directive to shut in production from the WF #2 is unnecessary and how Forest has complied with Rule 1 and Rule 3 of Conservation Order No. 532 ("CO 532"). Respectfully yours, Jim Arlington 1 of 1 6/11/2007 4:06 PM #2 s~ra~la P,aL~r~, GO~~RtvoR ®~i 1~T~]LR~~~I(D1~T 1~bII~SI~1~T and De rvere June 1 1, 2007 Jim Arlington Land Manager Forest Oil Corporation 310 K Street, Suite 700 Anchorage, AK 99501 RE: Conservation Order No. 532 Dear Mr. Arlington: 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 On September 16, 2004, the Alaska Oil and Gas Conservation Commission ("Commission") issued Conservation Order No. 532 ("CO 532"). CO 532 granted Forest Oil Corporation (-`Forest") a temporary exception to the spacing requirements of 20 AAC 25.055 to allow for drilling and initiating production from the West Foreland No. 2 gas production well ("WF #2). Rule 1 of CO 532 provides that this temporary exception "expires 30 months after Forest completes WF #2." WF #2 was completed on December 11, 2004. Accordingly, the exception expires on June 11, 2007. On June 8, 2007, the Commission received from Forest an application for extension of the referenced temporary spacing exception. Rule 1 of CO 532 allows Forest the right to apply for an extension of the temporary spacing exception or for a permanent spacing exception. The Commission will schedule a public hearing to consider the requested extension. However, CO 532 makes no provision for continued operations during the time between expiration of the temporary spacing exception and approval of another exception. Accordingly, on Tuesday, June 12, 2007, Forest must shut in production from WF #2. The well must remain shut-in until the Commission approves either a temporary or permanent extension of the spacing exception for the well. If Forest is aware of any legal reason why shut-in is not required, it should immediately notify the Commission of that reason. Also, Forest has failed to comply with Rule 3 of CO 532. This rule requires that Forest provide the Commission with geological, geophysical, and production data pertinent to establishing (i) whether hydraulic communication exists between WF #2 and nearby well West Foreland No. 1 ("WF #1"), and (ii) what proportions of the gas reserves producible from WF #1 and WF #2 underlie Lease A-035017 and Lease ADL 359111. The deadline for providing these data was May 2007: i. e., 24 months after WF #2 began production. Forest is in default of this requirement and must act immediately to comply with it. Failure to do so may result in the imposition of penalties by the Commission. cc: Commissioner Foerster ~ r STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: APPLICATION OF FOREST OIL CORPORATION for an order granting an exception to the spacing requirements of 20 AAC 25.055 to allow for the drilling and operation of the West Foreland #2 gas production well. Conservation Order No. 532 West Foreland Field West Foreland Undefined Gas Pool June 11, 2007 CERTIFICATE OF SERVICE I, Jody J. Colombie, certify that, on June 11, 2007, a Letter of Non-Compliance was hand delivered to Jim Arlington at Forest Oil Corporation at 310 K Street, Suite 700, Anchorage, AK 99501. Jo .Col ~e Special Assistant to the Commission State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 (907)793-1221 ~1 F O R E S T O I L C O R P O R A T I O N •' .~ /O C~~1, C~Cx~,e~ • C~urte X00 ~ DECEIVED ~~r~zT~~>f~~.~ ~~~~:;~~ y.~.>~~ ~ ~9o7).ws~-86o0 X907) X58-860 ~c~a.x~JUN 0 $ 2007 Aiasica Oif & Gas Cans. Commission June 8, 2007 AnChafagB Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. 7~' Avenue, Suite 100 Anchorage, Alaska 99501-3539 Hand-Delivered Re: Application for either an Extension of Temporary Well Spacing Exemption or conversion to a Permanent Spacing Exception for the West Foreland #2 Well ("WF #2") Conservation Order No. 532 West Foreland Field; West Foreland Undefined Gas Pool Dear Commissioner Norman: Forest Oil Corporation ("Forest") by this letter hereby submits this application, pursuant to Conservation Order No. 532, for approval by the Alaska Oil and Gas Conservation Commission ("AOGCC") to extend the spacing exception temporarily granted by the AOGCC pursuant to Conservation Order No. 532. Conservation Order No. 532 authorized Forest to apply for an extension of this temporary spacing exception or for a permanent spacing exception within 30 months after Forest completed the WF #2. This application is being filed within that time frame. Forest respectfully requests that the AOGCC approve an extension of six (6) months under the same terms and conditions of Conservation Order No. 532. If the AOGCC determines that a hearing is required prior to approval of this request for an extension, Forest respectfully requests that at said hearing the AOGCC also allow consideration of a request by Forest to convert the temporary spacing exception to a permanent spacing exception. Forest wishes to advise the AOGCC that the two adjacent landowners who comprise the West Foreland Undefined Gas Pool, the State of Alaska and the Bureau of Land Management on behalf of Cook Inlet Region, Inc., have agreed with Forest as to how the production from the WF #2 well should be allocated. However, the landowners have yet to approve a Royalty Sharing Agreement submitted to them by Forest on February 1, 2007 to evidence that agreement. Consequently, this application for an extension is required. Forest is hopeful that such an agreement will be executed within the next six months or, if the AOGCC schedules a hearing concerning this request, by the time a hearing takes place. If there are any questions, or should you need additional information, concerning this request and application please contact me at (907) 868-2112. Sincerely yours, FOREST OIL COR~P°ORATION ~ / ~ Jun Arlington f°_. `~ Land Manager cc: Cook Inlet Region, Inc. Bureau of Land Management Alaska Department of Natural Resources, Division of Oil & Gas Page 1 of 1
