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Home My WebLink AboutCO 564 ) ) Imagé 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. r /0 Ll:::) toy- Order File Identifier Production Scanning Stage 1 Page Count from Scanned File: 33 (Count does include cover sheet) Page Count Matches Number in scanni~.gf. reparation: VYES BY: ( Maria) Date: I J Cf/OC:; If NO in stage 1, page(s) discrepancies were found: Organizing (done) 1111111111111111111 D Two-sided RESCAN ~olor Items: D Greyscale Items: DIGITAL DATA D Diskettes, No. D Other, No/Type: D Poor Quality Originals: D Other: NOTES: Date: l1 / 00 Date: 1/1/Db DateX J 71/0 c, BY: ~ Project Proofing BY: C Maria ) Scanning Preparation BY: CMaria ") Stage 1 BY: Maria Date: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: Comments about this file: o Rescan Needed 1111111111111111111 OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) D Logs of various kinds: D Other:: m/) 11111111111111111 wtP /5/ /5/ + = TOTAL PAGES 3 d- (Count does not include cover sheet)JAAJIJ /5/ r V r 1111111111111111111 /5/ NO 'f) vvt YES NO /5/ 111I1111I1111111111 1111111111111111111 /5/ Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page.doc 1. July 11, 2005 2. July 15,2005 . Index Conservation Order 564 NB No.2 . Fairweather's request for an Spacing Exception NB No. 2 Notice of Hearing, affidavit of publication, address and e-mail notifications Conservation Order 564 ) ') STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF TECK COMINCO ALASKA INCORPORATED for an order granting an exception to the spacing requirements of20 AAC 25.055 (a)(4), allowing drilling, testing and regular production within 3,000 feet of a well capable of producing from the same pool. ) ) Conservation Order No. 564 ) ) NB No.2 ) Exploratory Gas Well ) ) December 12,2005 IT APPEARING THAT: 1. Teck Cominco Alaska Incorporated ("Teck Cominco"), by letter dated July 11, 2005 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on July 12, 2005, requests the Commission issue an order in conformance with 20 AAC 25.055 (a)(4) allowing drilling, testing and production of the NB No.2 ("NB 2") gas exploration well, which if productive may be open to regular production within 3,000 feet of a well capable of producing from the same pool. The surface location of this proposed vertical well is 272 feet from the west line and 2,898 feet from the south line of Section 17, T31N, RI8W, Kateel River Meridian. 2. The Commission published notice of opportunity for public hearing In the Anchorage Daily News on July 15, 2005, pursuant to 20 AAC 25.540. 3. No protests to the application or requests for hearing were received. FINDINGS: 1. The surface and bottomhole locations of this vertical well are 272 feet from the west line and 2,898 feet from the south line of Section 17, T31N, RI8W, Kateel River Meridian. 2. NB 2 is a non-conventional gas exploration well that is located on private property. NANA Regional Corporation is the landowner, and Teck Cominco is the owner and operator for the affected leases. 3. This well is located 1-1/2 miles north of the Red Dog Mine in an area that has been extensively drilled for mineral exploration purposes. This location is favorably positioned on the underlying geologic structure. 4. This well will be an integral part of a multi-well program to test the capability of the reservoir to produce gas in commercial quantities from a non-conventional, shale reservoir. Conservation Order 564 December 12, 2005 Page 2 of2 ') ') 5. Production of gas from shale reservoirs requires de-watering to reduce pressure and increase gas flow. Typically, shale reservoirs need more closely spaced wells than conventional gas reservoirs to produce gas in economic quantities. 6. The productivity of this shale is unknown. Adequately de-watering the affected section of the reservoir and testing its capability to produce gas require that well NB-02 be placed closer than 3,000 feet to offset non-conventional gas well NB- 01. 7. An exception to the well spacing provisions of20 AAC 25.055 (a)(4) is necessary for the drilling, completion, testing and regular production ofNB 2. 8. The Commission received no objections or protests from the public notice regarding the NB 2 well. CONCLUSIONS: 1. An exception to the well spacing requirements of 20 AAC 25.055 (a)(4) is necessary to allow drilling, completion, testing, and regular production of the NB 2 well gas exploration well. 2. Granting a spacing exception to allow drilling, testing, and regular production of the NB 2 well gas exploration well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners, NOW, THEREFORE, IT IS ORDERED: Teck Cominco's application for exception to the spacing requirements of 20 AAC 25.055 for the purpose of drilling, completion, testing and regular production of the NB 2 gas exploration well is granted. / aniel T. Seâmount, Jr., Commissioner fd~~~Sioner 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 23'd 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., 10lh day after the application for rehearing was filed). Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 ) Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 ) David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Seversùjj 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 .~¿ D0 'JCJ\ '\,-1 , \~ :0564 Spacing Exception Red Dog Mine ) ) Subject: CO 564 Spacing Exception Red Dog Mine From: Jody Colombie <jody_colombie@admin.state.akus> Date: Wed, 14 Dec 2005 09:32:28 -0900 TO:llndis,closeà-recipiel1ts:'; , BCC:Cyrithia.·BI~civ~r...->bren_~civer@admin~state.ak.us>~Robert EMintz <r?bert~œi~t?~!~~.sta!~.~.usS",~hiistil1~fJanseIl~ç.4anseJ1(@iQ~~c. state~ok.~s>, ~~rrie,I-fubble ~hulJbletl@ìb~.co11J>' Sd~dra St~~an-<SteWI11aSD~~P.co~>,S~ott& Carnµly Taylor <stayl9r@alask~.net>,st~7~j <~tat1ekj @UlloC~1.cø111>,.ecola~R~9olaw@trustees;org> ,·..trmjr 1 <trmjr ¡.@aoJ;~.ol}1~"jþ~id4~:~,~brid41e@rnar~tl1~t1Q.il.?øm? ,~h~yg.~shaneg@7~ergreengas.cQm>, j.dar. :.:'.l'.i. D. gt. '. ·'.Otl.'.:<.:,J..· d....',ar...,....:. ."....I.i...ng.'t. I@."..:.Ð..,.:. @.·.'.D,:.O,. "'.r.'...~.. 8,....t" oi, l...,c0.'."..Œ. """ >. ..~.:..·..',·.ri.·:~l,.s. 0". ß. .'...<..... kh. ...'.' ...:.e..lso. ',.n. .@.. '......'.'..p. et~.0.: . Ie. U. .... m.. new., .,'. s.,'c'" om. .,....>.'.. c', b. .. od.dy . ... ... .':'1 ."" ',' "',," :""::,', ", ill"", _"" " ,I ',:' " , ","', ,:, :,' ,",., " ',:"" '" ,0" ::;' " '," ,I" I :' <cboddy@µsiq~1!Lc0~~,:M1ar~P~lton-<rncuk<ialton@h4rinç.cotl1>,Shan.nol1 Donnelly , <shannor;~o~n~1l~@con.9COpl1i,l:H~s.coT:>,"Mar~.H ~"\V9~ceste('. . ·....ii.,.. .... ' ....... . <l1J.a1"k.p.\Vor~,ester~ç()nocopþillips.c?l1}>tI39b<bq~~lnletKç~Be~.org> ,w~v <\V&v~?nr.:state.ak. us>, tj r~tjr@4prrstat~~a1<' B~? ,q~,f!tçh ..<hþri~cÞ(Ð~las~a~net*~..l1)jflel$'pn<Çtl1j l1el~(n1@purYing~rt~. com>, Charles . 0'pol1i1~1~ "1cl1~les'~0~~01imell@v6c().ç()ITl~; ""~~d)'" B~... SkillernJ',<;êkille~@B'P.com>, "Debpr~h" J.. JpnesV<J ()rl~sD6@~r,;cø'm>, ',"~teyenß.· 'It0ssþe¥~"~~ossbeR.S@BP;com>, .Lois <lois@inlet~eTPer ,~rgr,.·D~ßro8s<kµ~~ne'Ns($k~:~c;Q~g>,..Gofd0t1 gospisil..<;~()spi~G@BP;com>, "Francis:..~·~ . SQ~l11er"; <:SoWl1}er~~@~~.cbl}1?,Mi~er;Sqh~lt~<MikeL$~h~ltz@)BP ;~Ol11~' ··"Nick·..W. Gl?ver".. <Çì19v~rN""o/@~P.c0n1~., '!DaryJJ¡Kleppin".~I(l~p~iq~(~~P;c'om~,. "JanytD,.Pl~tt" <P,lattJD@.. ß.'p.····;c0m~ ,"RosaD,l1~· M. ':J~cobs~n"~J'ªcQ1?~RM@J3P';c,om~,dèl()nkel~ddQt1kel@cflrr ,Qom>, ',"" :,::, :"", ,I,".: :',,:1,',,";',,: .. , '",', ", :;.','; .:,<,' \:' ,'" ;" ':'¡'I, ",'" ,',' ',:,', " :: .:.. ',::1, " ",'; '::'.., :." I' ,I',','; :.." ' : .,,::" '",' , ,', ' I, ",I:, ';: ,"'! ,:' ,,' ",:, ,,: ',: ':,:' ',,'" I mckay <mcka.Y@jFci~net?-,ßat~~~Frf~1ll11~r,,<Sþavbax~.f.fu!ln;1~.~~conoc?phiU~ps;cop1>,. bQFa~twf <Þ()cast»,f@b~;pom:>~C~arl~s ~~~e~<~~k~r@}lsgs.gov~,çloug~~çhlllt~ÿ, .'., .'. ........ . ...... '.' '...... <doug~schultze~xto~l1er~)'.com>, .:fIa~¡'A.lfo~d~hank.a.lford@exxomnobil;c()~~,M(U'K.Kovac <yesno l·@gci.n~t>, · gspfoff.~g~I>f()ff(@~urorapÖ'Ner.coffl~~··Gr~g~·.~a.dy ~gregg.na4y@she~Lcom> ,Fred Steece ..<fr~d.steeçe@ståt~; sd. us:>, rcr0tty<rGrottf~'ch2m.cqm?,j ej op~s"<jej ()n~~@a\lrorapower.com>, dapa <da. pa@.··,alaska.net>, jrºderick<jroc.i~rick@gcLRet~, yyancy<eYahcy@seal4ite.net>,"Jam.esM. ::,';, I:, :", :::;1, ':, :""','~ " " :, " -:':," ,,; ,:' ,''':'' ", , :" ",.::, , ,::; :', " , ' " ,,,I ::" , d":,, ,:, :," ,<",'" , , ' "", " " ,'" ,,' Ruud" ·<jæpes'l11.ruuci@c9110C()phillips.com>,.}3dt Liyely <m~p~laska@ak;net>,jah.. .'.' <jah@dnr.8tate.ak.us>, l?uonoje<buonoj~@bp.c?l1l>, Mark'Hanley<mark_hanley@anaparko.com>, . loren-,-leman <!qren~lematl@gov.sta~e;ak.u~>, Julie Hqule..<julie_houle@jdnr.state.åk.us>,.JohnWKatz <jwkatz@sso.org>, SuzanIHill..:::suz;an_hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state;ak.us>, bpopp. <bpopp@borough.kenaLak.us>, Jim White <j imwhite@satx.rr.com> , "John S. Haworth" <john.s.haworth@exxonmobil.com>,marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <itbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rander <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe <lambes@unocal.com>, jack newell <jacknewell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, david roby <David.Roby@mms.gov>, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <J erry. C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary 10f2 ~ 12/14/2005 9:32 AM :0564 Spacing Exception Red Dog Mine ) Rogers <gary__r()gers@reveriue~ståte.ak.us>,ArthurÇopbu10s <Arthur _Copoulos@dnr.state;*.us>, Ken <:ken@seqQrp-iµc;com>,§teye,~amþert. <:sa~~mb~rt@unocal.com>, ..JoeNicks <news@radiokenai.com>, Jerry McCutcheon <sllsitt1&1ygronow@yahoo.çom>,Paul Todd <paulto@acsalaska.net>, Bill Walker <bill-wWa@ak.net?,· Iris . Matthews <Iris_Matthews@legis.state.ak.us> "",1, ·".L,'"' ,""'". ""'d, "".,,,. '''' "Î .",,, .."".",."",."",.,,,,.,,,..,,, "."..".."... ",,,,,,,,,,',.., " ""'....""" " I' '. .' .··1 COJ1tent-Ty' .p' e:app····licätionJp··· df: C0564 df' . ........ .......... . ....... ". ..... .... . ... , . '. .p I Content-Ençoding: base64 20f2 12/14/2005 9:32 AM #3 #2 STATE OF ALASKA ) NOTICE TO PUBLISHER ) ADVERTISING ORDER NO. ADVERTISING ORDER ~EE!;B'~~~~~,f~~:'~r~tP~"A~:[)~E~,~¡,:,;' F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATIACHED COPY OF ADVERTISEMENT MUST BE SUBMITIED WITH INVOICE AO-02614003 AGENCY CONTACT DATE OF A.O. Jody Colombie PHONE July 14, 2005 PCN (907) 793 -17?1 DATES ADVERTISEMENT REQUIRED: ~ Anchorage Daily News PO Box 149001 Anchorage, AK 99514 July 15, 2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE I>R[NTED IN rTS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal D Display Advertisement to be published was e-mailed D Classified DOther (Specify) SEE ATTACHED " SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchorage. AK 99:-;01 NUMBER AMOUNT DATE TOTAL OF PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS REF TYPE 1 VEN 2 ARD 3 4 ¡::UJ AMnllNT 02910 ~v r.r. Pr,:M Ir. Ar.r.T ¡:v NMR DIST LlQ 05 02140100 73451 2 3 It R~QUISITIONE(BY;"'\ , I Irt, í'l , / ',-, l' \~C0!Ó{/, /' / DIVISION APPROVAL: ............. ') ') Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Teck Cominco Alaska Incorporated ("Teck Cominco") for a spacing exception to allow the drilling, testing and production of the NB-02 gas exploration well in accordance with 20 AAC 25.055. Teck Cominco, by letter dated July 11, 2005 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on July 12, 2005, has requested the Commission to issue an order in conformance with 20 AAC 25.055 (a)(4) allowing drilling, testing and production of the NB-02 gas exploration well, which if productive may be open to regular production within 3,000 feet of a well capable of producing from the same pool. The surface location of this proposed vertical well is 272 feet from the west line and 2,898 feet from the south line of Section 17, T31N, R18W, Kateel River Meridian. The Commission has tentatively set a public hearing on this application for August 23, 2005 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on August 1,2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West ih Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on August 17, 2005 except that if the Commission decides to hold a public hearing, written protest or comments must be received no later than the concln of the August 23,2005 hearing. If you are a person with a disabili~i~ay,nee .'. peci¿ommodations in order to comment or to attend the public hearcg, Pit co t J~IOmbie at 793-1221. m ,Nore~ a Published Date: August 15, 2005 ADN AO# 02614003 ) ) Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 548313 07/15/2005 02614003 STOF0330 $188.48 $188.48 $0.00 $0.00 $0.00 $0.00 $0.00 $188.48 STATE OF ALASKA THIRD JUDICIAL DISTRICT Notice of public Hearing STATE OF ALASKA AlaSka Oil and Gas Conservation Commission Signed Yrt~Á The (Jpplicat,ion,ofT~çk Cominco Alaska Incorporated ("Teck Cominco") for a spacing exception to allow the drilling, testing and production of the N 6-02 gas exploration well in accordance with 20 AAC25.055. Teck Comlnco, by letter, dated July 11,2005 and re- ceived by the Alaska Oil and Gas Conservation Commission ("Commlssion") on July 12, 20~5,has requested the Commission to issue an order In c<?n- formance with 20 AAC 25,.055 (a)(4) allowing dnll- ing, testing and production of theNB-02 gas explo- ration well, which If productive may be open,to regularpròduction within 3,000 feet: of a wellca- pable of producing fr()m ,the san;le pool. The sur- face location of this pr:oposed vertical well Is 272 feet fr,om th,e w~st line and 2,898 feet from the south line of section 17, T31N,R18W, Kateel River Meridian. The Commission has tentatively set a pUblic hear- ing on this application for August 23, 2005 at 9:00 amat the Alaska Oil and Gas Conservation Com- mission at 333 West 7th Avenue, Suite 100, Anchor- age Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a ' written request with the Commission no later, than 4:30 pm on August 1, 2005. If a request for a hearing is not timely filed, the Commission may consider the issuance of,!n ?r- der without a hearing. To learn ifthe Commission will hold the, pUblic hearing, please call 793-122l. I n addition, a person may submit written colT!- ments regarding this application to the Alaska 011 and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Writ- ten comments must be received no later than 4:.30 pm on August 17, 2005 except that If the Commis- sion decides to hold a pU,bllc hearing, written pro- test or comments must be received no !ater than the conclusion of the August 23, 2005 hearing. If you are a person with a disability who may need I special accommodations in order to comment or to attend the public hearing, please contact Jody Co- lombie at 793-1221. Re: Teresita Peralta, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. SUbSi:Jd Sj;n to ;;;e iliffi date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ()c¡ ~J. ~O/ /tn~~ Æ~'/"7(. \ll({((((rfr;: - \.\\\\~'f;~F!',..q. /"r~ // V(YY ;$~~" ----..%~ ~ :' ~ 0 Tt~ ~ j.' ~ -:::. .:::. ~"""'J¡.I.«¡ ...~oP ~....... '-., . Þ..· . ::: _.~, . ~i;~s eF : ..... _.-...:; . fP. '~""".~"" ...... -c>.~~... ........... --:.. '';k . "}~,!I. .... '''' ~. . . ~' ~ -."~ . ..~. . ~E ~ ~ ......- "\'\,,:' (,.If: ¡L\t.~ . . ~\.," ~ ~ ;.¡-:;:.. ¡.~. . . .~....--:.\.~....,'\ .. .,t'. ,......l¡t¡"Jir.¿"it f.;.~~:,.\ ", ~ J'ili) ) J J j ¡'I) /s/: John K. Norman Chairman ADN AO# 02614003 Published Date: July 15, 2005 02-902 (Rev. 3/94) Publisher/( }al Copies: Department Fiscal, Departmen \iving AO.FRM STATE OF ALASKA ADVERTISING ORDER "S,¡:E ê9TtØM!,~lq~'~YþIÇEf'Pp~ES§ . ....... I I'::.: ::, :::' ,I::', ,I':,::;:: :::,:':' ~':~::: r;¡;":I;:¡.:!, :':.:':,:, 1:'/::: ,!'i:":,!:¡I':~i :/:' ::' :::';/il:,:('::I;:';'::;, ,i ",:,:",!,:." :';' :', ::::: ':: I' I;, i:i,: I:;,::¡ ,! '.' ,LI,,::: I ::,' I F AOGCC R 333 West ih Avenue. Suite 100 a A n('.h{)r~oP. A K QQ-')() 1 M 907-793-1221 NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AD 02614003 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF - ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AGENCY CONTACT DATE aF A.a. Jodv Colombie Julv 14. 7005 PHONE peN (907) 793 -17?1 DATES ADVERTISEMENT REQUIRED: T a Anchorage Daily News PO Box 149001 Anchora~e, AK 99514 July 15, 2005 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMllTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of ,2005, 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 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM R.e: Public Notice ) ) Subject: Re: Public Notice From: "Kirby, Kimberly" <KKirby@adn.com> Date: Thu, 14 Ju12005 14:41:30 -0800 To: 'JQdy'~o16t1Íb,iË<j:qdy_colo11J.þie@~dmiri.~t~Ü~.åk.us>, Hello Jody: BE SURE TO CHECK OUT THE LEGAL NOTICES ON-LINE. WE RECENTLY CREATED NEW LEGAL SECTIONS ON-LINE ESPECIALLY FOR THE STATE OF ALASKA. WE ARE OFFERING A 90 DAY FREE TRIAL ON ALL LEGAL ADVERTISING AS OF MAY 9TH TO PROMOTE OUR NEW ON-LINE, USER FRIENDLY CATEGORY'S. PLEASE TAKE THIS TIME TO TRACK YOUR CUSTOMERS AND SEE IF ON-LINE ADVERTISING IS RIGHT FOR YOU. Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. I changed the publish date on the actual notice to read July 15, 2005. Please let me know if this is not correct. Account Number: STOF 0330 Legal Ad Number: 548313 Publication Date(s): July 15, 2005 Your Reference or PO#: 02614003 Cost of Legal Notice: $188.48 Additional Charges: Web Link: E-Mail Link: Bolding: Total Cost To Place Legal Notice: $188.48 Your Legal Notice Will Appear On The Web: www.adn.com: XXXX Your Legal Notice Will Not Appear On The Web www.adn.com: Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 7/14/05 12:21 PM, "Jody Colombie"~o9_Y colombie@adrnin.state.ak.us> wrote: Please publish the attached tomorrow. Jody Colombie 1 of 1 7/14/20052:54 PM Public Notice ) Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 14 Jul2005 12:21 :33 -0800 TtJ: LegårAds'A.Í1èhoragèÐ~ily Nèw~ <lëgalads@ädh.6óin> Please publish the attached tomorrow. Jody Colombie Content- Type: application/msword Ad Order form.doc Content-Encoding: base64 Content-Type: application/msword NB-02 _ Spacing_Exception _ N otice.doc I Content-Encoding: base64 1 of 1 7/14/2005 12:21 PM >ublic Notice NB-02 Kateel River ) ) Subject: Public Notice NB-02 Kateel River From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 14 Jul2005 12:25:04 -0800 'f~:~~:ti~~~9,s~4-recipieÍ1!~:~ .'~."....'. .............. .. ....... ........ .........~~ ............ ....... .'.' .; ...... ....... .......... ..........., ..' .':. 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Jones II... <J q~esÐ6@BP.com», "Ste¥~~,,;,~.':¡~~:~~g~~~r::.".;:"¡ ·ri,';.............','., I.,: ~ß?,~;~~~~S;CW~P:'·ÇOllJ>, Lois. <lois@i?retkreper~?~g> ~...pan ~rQ~~. .<~R~5~,~~s~~~~~,,;~r~~~:'~~;r~~.11· '. .:"\i PqspISlJ"SPOSp~lsG.@BP.com>,. "FrancIs S. Sommer"->Soµlln~rFìS@I}:~jICOl1J.8> ,'~,M!~e¡'$.~hµltz.' '., '<i, <Mik~l.Sçþultz~BP . com>, .·"Nick ·w. Glover;'~GloverNyv@~~..·~Þill~,:!'pii::!'[:;i;~Í'~pPI~#1~','.·'Iil!· "" ." <KJ~ÞFipE@J?\,i~Oll1:>' " Janet' D..,Platt" ~Pl~ttJl)@}~~~.~olTI~'.·"!~()s~~.· IyI,.,{~pg~~~~~,!'::,,:.I'IIIII',.;,·.··.... ...'........ ............. '. <~Åc9bs~~f@~P.POP1r'~i~?n)<~l·~dpqtW~r@~~~~.co~»fW~k~¥;~l11ç~ay~~þ.~I·H~~.;'I~!~b~~',,~fuHlTI~r'·. <barb~ra.f;fulll1}er~co~:()~9RHill~ pS.CQl11~ ,l?oc~st»'f,~þoca~twf@bg.c?fl\l~,·. Çh~le:~~a.rker ··'i'..,. <9~k~~@u~gs.g?¥~,dqlJ~~~çhpltz~3clOB9-"~p4~lt~~;~~~oÿn~~~Y~,P9fP~'~~~',~JfQ~R:.II,'· ... <h~lnl(.alfQrd@~x~OD.1JlobILcOm>, Mark Kovac <yesnon@gçl.n~t1> ,Igspfoff ...',I,i.".\ ..' I i ··1 I';''''' ,": ,,': II, ,'::"",', ;,:., ,":::'; I" :,: :' , ,~"i, ':', ' ' :' ,,'" ,':,:, ':: " '" "»" :', """1", ,,: " :: .:: : '," ';,1" ' :::!:: '1,," .,' ,i,::, <", ':':; 1,,;\: ,") :' ,:,<,~~ ", ,"~ ' :':: ,,' '< I ,,:<."",,; :' ,~<, j,'I!',!::',:' :}: ,/:, ,) ,,::"', ::-',,:' ',' ,,:" ~g~pf9tf~~uroFapQ~~r·F?~~~(lr~gg.N~4y<~~~g&,¡~'~dY~~ë~p·,fop:~"~!e(j:,~t~~c~:::,,...{'>i':,', ........ i· .....' '.. . <fry~;~teecç@stateisd;-gs~ ;rcrot~r'frprot~Y.@C~f~.~O~~, 'J eJol1~~,<JeJ º~~.~~~~~.~ªB9~~~:q,p~>-,·ct~P::l <dapa@al~ska.net~, jroderick <jroderiF¥~g~i.IIet!>;~yancy~e~apcY~êe~lrth~.~~t>',,~;J~e:ê::Ni··JlUUd" <j;ames.111·fuµd@conoçophillips.corh> ,~rit,LivelY<trlapalªsk~~ak.net<, j.å1i.. ~jah)@d?r.sta~e.a.k. US>, Kurt.E...Olson<kurt_olson@legis.state.ak. US> ,'buonoje<buonoj~@þp~Coip>,Mar~ . Rapley. . . <mar~-,. hanley@anadarko.com>, 10ren.Jeman <loreri _leman@goy .state.ai<.us> ,'JuliefIoul~ <julie_houle@dnr.state.ak.us>, John W Katz<jwkatz@sso:org>, Suz(UlJ Hill <suzan_hill@dec.state.ak.us>, tablerk <tablerk@unocaI.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Bill Miller <Bill_Miller@xtoalaska.com>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Garry Catron <catrongr@bp.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler· <Bill_Fowler@anadarko.COM>, Vaughn Swartz <vaughn.swartz@rbccm.com>, Scott Cranswick <s·cott.cranswick@mms.gov>, Brad McKim <mckimbs@BP .com>, Steve Lambe <lambes@unocal.com>, jack newell <jack.newell@acsalaska.net>, James Scherr 10f2 7/14/2005 12:27 PM >ublic Notice NB-02 Kateel River ) ') ~ames~ßchèr~'@y~hoo;c011Í~ ,davidropY~David.~ol?ý@mros.govÞ,,~ini LàWl?f' : "'" ':.., <Ti111 ~ L~'Ylor@åkÞlø~~ov>"~Yl1nq~,K~~~~~n4~ ;Kcrlm@f'Ys.gqv~, ,JerrY,:péF~lef~: <1 ~~..C.[)~~l~f~~cøn?~ophilp.ps.co~>~J t¡rJ1'..q!,~efs<~161(@CO~RCOf~1Itr~;S()R'. ... ... 9r9G,~~~t@~9~alo~p,:!~ll'l~~~. .·~~~,~fi~lcli~~b.~f~~~g,~ª?g;~:~9r~~"J~~:IÇTolt~':;:""'1,1!i,",:i;"!:::;:I:,I..' :':';1';".';,.1: " '.'.. '".' , .'.'..' '.' .'.' <J on..~çHf~@9,dno~opþillips;cØ*B'r,:R0g~r:I~~lD;1@~~þg~~.þ~lman@conó#ºphHnp ,.," ,.1TI:?*,:M~hdY'bèwis, , ~',<' "'",' ,',: I,~I,I, ',:;' -',':':" :!' :" I, ,,:,,":"1 , "',:' ',I ",, ::":r ' , " "<,':';:'" ,: ,i:' I,',','; ~,':: :!:'" ':'" I,~ :,. ):,:1,,:,,':":", :" ':',> ,:!' ;':" 'I:!'. ': <>'::,,''''' , ':::":',:,1,: >:""":'1'" ,:~:::::¡'I::',:, ,:,:,'1",', '''i, ",II;i ::' ;,: ,"I '\::' ,," ':: ,: ," 'I <~~e~i~:~brF~~1a~~c()111>,I-I~,}j~pyti'F~~·~ªP1~ert~Þ:9n~~'kt~l·c~n11~¡',~~,~¡~?~i~~i ......, , ,':,: " ,! <~qn~Y@a.ogª,·9I1g>,Pattyªlfaro.~pa!faJ;o@Y~90·PQ1V>,J~f~!<srp.ç;taI1kaJ@µl1~ç~~;Ppm~,'Todd,:,Kratz'" 'STpdd~r~tz@cl1~:VrÞµ.c9m>' "I'i.:",!' , """""1' ',' 'II " ,,','0:' I" 'II'¡:, "I,," ,',,',1 2 of2 7/14/2005 12:27 PM ) ) Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 David Cusato 200 West 34th PMB 411 Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 #1 ) SPACING EXCEPTION , Area / Well: ;Vß -C) 2- ~c¡¿~ Gn1/ncò Operator: Hearing Date: /' Application Complete -y:¥ Ç' ..-'/ Additional Infonnation: Requested ~ Additional Information: Requested Additional Information: Requested Additional Information Complete VIa ¿Ç,..,,:¡ ; Received M~ ""'- ; Received VIa ; Received VIa VIa VIa Public Notice tY''-/Text Drafted "0 Z- Text Sent to Att;~ "',. Text ~eêíby Attorney General's Office .-/ ~ent to Jody for Fonnatting / Publishing -yr::5 A-- Published in Anchorage Daily News on Questions for Operator Questions Drafted Questions Reviewed: By Team Questions Sent to Operator VIa Response Received VIa Response Complete Public Hearing Hearing Held Additional Information: Requested Additional Information: Requested Additional Information Complete Order Text Drafted by Text Reviewed by Team Text Sent to Attorney General's Office Text Reviewed by Attorney General's Office Text Reviewed by Other Agency Text Sent to Jody for Formatting I Publishing Text Sent to Commissioners ; By Attorney General's Office VIa ; Received ; Received VIa VIa VIa DONE '7/Í~Ç.'- ) - , , CHECKLIST - SPACING EXCEPTION APPLICATION -~~::~i~-~~:~~~~~~:::~~~~~~~::~~SE~~~AÞf ~~~::TZt~;;'~ß~~ WELL NAME NB 02 VERTICAL DEVIATED ¡// --- -"--~-"----'--- ...----.--.- EXPLORATORY _YJ~$________,____, DEVELOPMENT ______________________________ GAS OIL ---- -".- ""--'---'- ._- ---.---..- __w_________._..__.,...___.___ -----..----......----..--,---.- SURFACE LOCATION PRODUCTION INTERVALS (Top and Bottom) BOTTOM HOLE 2898 FSL and 272 FWL in T31N R18W M K NO LOCATION NO LOCATION NO LOCATION Check applicable reason(s) for spacing exception per 20 AAC 25.055(a): No Spacing Exception requested to (1) to drill a well for oil within 500 feet of a property line where ownership or landownership changes No Spacing Exception requested to (2) to drill a well for gas within 1500 feet of a property line where ownership or landownership changes No Spacing Exception re-quested to (3) to drill and complete more than one oil well in a governmental quarter section; or No Spacing Exception requested to (3) to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool No Spacing Exception requested to (4) to drill and complete more than one gas well in a governmental section; or Yes Spacing Exception requested to (4) or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool. Yes Does the application contain a brief explanation for why the operator has chosen to drill the specified location. Yes Does the application contain a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas_:_________ Yes Does the application contain the names of all owners, landowners, and operators of all properties within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. Yes Does the application contain acopy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Yes Does the application contain an affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. NA If the operator requests a variance from the notice requirements of 20AAC25.055(d), does the application contain sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area. ) ) - ~ .... -- - -.... RECEIVED JUL 1 2 2005 "''''^' - - '" E & P SERVICES, INC. July 11, 2005 Alaska Oil & Gas Cons. Commission Anchorage Mr. Tom Maunder, P.E. Petroleum Engineer Mr. Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Teck Cominco Alaska Incorporated: Application for Exception to 20 AAC 25.055(a) (4), Spacing Exemption for Well No. NB-02, Red Dog Gas Exploration Project. Dear Mr. Maunder and Mr. Davies: The 2005 Red Dog Gas Exploration Project consists of drilling two (2) shallow shale gas exploration wells (Wells Nos. NB-Ol and NB-02) to determine if natural gas will desorb from the organic-rich shales of the Kivalina formation. These two wells are part of a five- spot pattern of test wells which will be completed if the results ofNB-Ol and NB-02 demonstrate the feasibility of the desorption process. Well NB-02 is located less than 3000 feet from well NB-Ol (the first well to be drilled in the five-spot pattern). Under 20 AAC 25.055 (a) (4), Well NB-02 will require a spacing exemption. The following information is submitted on behalf of Teck Cominco Alaska Incorporated in support of this application for a spacing exemption: 1. 20 AAC 25.055 (d) (1): The names of all owners, landowners and all properties within 1000 ft of a well drilling for oil, or within 3000 ft of a well drilling for gas for which and exemption is sought. There is only a single landowner involved, which is: NANA Regional Corporation P. O. Box 49 Kotzebue, Alaska 99752 The operator of the NB-02 well and all the surrounding acreage affected by the Red Dog Gas Exploration Project is: 2000 East 88th Avenue · Anchorage, Alaska 99507 · (907) 258-3446 · FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505· Houston, Texas 77060· (281) 445-5711 · FAX (281) 445-3388 ) ') Teck Cominco Alaska Incorporated 3105 Lakeshore Drive, Bldg. A Anchorage, Alaska 99517 Since Teck Cominco Alaska Incorporated is the applicant, a copy of this application has only been sent by Certified Mail to Nana Regional Corporation at the above address. 2. 20 AAC 25.055 (d) (2): A plat drawn to scale of one inch equaling 2640 feet or larger showing the location qf the wellfor which the exemption is sought, all other drilling and completed wells on the property, and adjoining properties and wells: The plat is attached. 3. 20 AA C 25.055 (d) (3): An qffidavit by a person acquainted with the facts ver!fying that the facts are true, and that the plat correctly portrays pertinent and required data: The affidavit is attached. Teck Cominco Alaska Incorporated believes that 20 AAC 25.055, as presently written, was never intended to cover the situation presented by the Red Dog Gas Exploration Project, where a closely spaced five-spot well pattern is required to test the gas desorption potential of the Kivalina shales. The objectives of the five spot program are to confirm geologic and reservoir properties over a large area relative to the near well-bore data obtained from the the test wells; to simulated the fully bounded conditions of interior wells in a full field development setting by allowing for dewatering the center well; to determine relative permeability through simulation history matching of the gas, water, and pressure data obtained from, producing the five-spot wells; and to prove the capabilities of the target shale body to produce gas in commercial quantities. The center well in the pattern will provide an analog of how wells will perform field-wide once a regional pressure drawdown is attained through dewatering, and will prove the capability to produce methane. Previous studies have shown that a single unconfined well will produce significantly less than fully bounded wells due to ability of the surrounding formation to replenish water to the shale fractures near the producing well, and therefore may not provide a reliable indicator of future field production. Furthermore, reservoir simulation history matching of a single well may yield unreliable relative permeability data. Once reservoir simulation history matching has been successfully completed, the results can be used to make certain critical determinations prior to proceeding with the full field development, such as optimal well spacing, well field layout, and optimal stimulation and operating practices. Advanced Resources International, under contract to Teck Cominco, has developed the five- spot well location spacing to be used in the pilot project. Based on this spacing, and on the forgoing information, Teck Cominco respectively requests that the Commission consider and alternative interpretation of20 AAC 25.055 for the Red Dog pilot project which considers the five-spot pattern to be a single interactive penetration of the reservoir. ~~ ) ) Thank you for your consideration of these matters. Enclosures ) '> RED DOG SHALLOW SHALE GAS EXPLORATION PROJECT See 12 :21:2 a::¡a:: ~\~ ~'~ 0') co T""" I T""" a::,a:: z z T"""\T""" (V) I (V) I- l- I I ¡ I I See 7 See 8 See 13 1000' Well Number NB-01 ep--- , ¡ ~2_ Nul1lÞer N6-Qf See 18 bl I ~ee 11 L!) I I - '... co Ct) I I 0') I I~ I I I I I I See 24 See 19 See 20 Well Coordinates are in Alaska State Plan Zone 7 in US Survey Feet Well Number NB-01 x= 582,242 y= 5,150,884 Well Number NB-02 x= 583,714 y= 5,150,083 TCAK Shallow o II! 4 !Mile$ ') ) J AFFIDA VIT This affidavit will certify that I, R. C. Gardner, am acquainted with the information in the Application of Permit to Drill for the Teck Cominco Alaska Incorporated Well No. NB- 02: the subsequent responses to questions fÌ"om the AOGCC regarding the drilling and operations procedures relating to this well; the application for spacing exempting for this well as defined in 20 AAC 25.055; and the plat showing the location of this well with respect to surrounding wells. I further certify that the facts presented in these documents are true, and correctly portray the pertinent and required data. -"" Date: rl /~,.?~ Signed and sworn before me this 12th day of July, 2005: d~¡)d~' Lisa Lovel LarinÌ, Notary Public My Commission Expires February 15. 20~