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Home My WebLink AboutCO 571 e e 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 0 5 r¡ 1_ Order File Identifier Organizing (done) o Two-sided 1111111111111111111 o Rescan Needed 1111111111111111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) o Maps: o Other Items Scannable by a Large Scanner D Color Items: D Greyscale Items: D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: D Logs of various kinds: NOTES: Project Proofing BY: ~ Date c¡ ¡llf / () b o Other:: lliP /s/ 11111111111I11" III Date q JI4!O(;¿ /s/ IMP BY: ~ Scanning Preparation BY: = TOTAL PAGES ~ ~ (Count does not include cover sheet) f11f . 1st 11111111111111 11111 Date: + Production Scanning Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: J/ YES BY: ~ Date: q / t If' cIo Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO Isl ~ NO BY: Maria Date: /s/ 11111111111I11 1111I Scanning is complete at this point unless rescanníng is required. ReScanned 111111111111111111I BY: Maria Date: 151 Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page .doc . . INDEX Conservation Order 571 Red Dog Shale Gas Exploration, Well NB-03 1. June 12, 2006 Application for Spacing Exception 2. June 30, 2006 Advertising Order And 3. July 27,2006 E-Mail re: Vacating Hearing 4. September 8, 2006 Recusal from Decision John Norman Conservation Order 571 . . DONE - SPACING EXCEPTION: c/' Application Complete Additional Information: Requested _ Additional Information: Requested / _ Additional Information Complete _ Public Notice Operator: Hearing Date: ~ ~B - 0 "3 ~~ ~(hC.~ ~<¿V Area ¡Well: ~ Received ~ Received VIa VIa VIa VIa Text Drafted on Text Sent to Jody for Formatting I Publishing on 7' Published in AÞ Ai Published in .dJ. Questions for Operator Questions Drafted Questions Reviewed: By Team ~ By Attorney General's Office Questions Sent to Operator VIa on ~·30D~ on Response Received VIa Response Complete ,/ Public Hearing _~ / / / /' Hearin~ -'yÆ-~~~ Additional Information: Requested Additional Information: Requested Additional Information Complete 7·31 ~ Received ~ Received VIa VIa VIa via Order ~rafted c¡.ç by ~ _ Text~ ....s(.JM-fl.¿.~~ ~ 9·S-,O/' /Text Sent to Attorney General's Office 4If. ~ ~b ~ Text Reviewed by Attorney General's Office q. s::- Text Reviewed by Other Agency Text Sent to Jody for Formatting I Publishing Text Sent to Commissioners Approved by Commissioners Published · . CHECKLIST - SPACING EXCEPTION APPLICATION OPERATO~ ~(t;¿ò PROPERTYID/LEASE s: ~AA.. ~ k FIELD/POOL ~7<rltYYqb PIISH: ~AA-"f;.t!:... WELL NAME /\/ß -03 /' VERTICAL .,/ EXPLORATORY ~ v GAS '- ----- DEVIATED DELINEATION OIL DEVELOPMENT SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE /",53-' FI..JL andÆsÇ"' FS L, S./7, T.3/tI R/ßtJ~ ~ F Land 'F L, S. ,T R M ~-;-F Land 'F L,S. ,T R M Check applicable reason(s) for spacing exception per 20 AAC 25.055(a): (1) to drill a well for oil within 500 feet of a property line where ownership or landownership changes, (2) to drill a well for gas within 1500 feet of a property line where ownership or landownershi chan es, (3) to drill and complete more than one oil well in a governmental quarter section; or to drill and complete an oil well closer than 1000' to any well drilling to or ca able of producin from the same pool, (4) to drill and complete more than one as well in a ovemmental section; or or to drill and complete a gas well closer than 3000' to any well drilling to or ca able of roducin from the same 001. Does the application contain: A brief e lanation for wh the 0 erator has chosen to drill the s ecified location. 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 exce tion that is drilling for as. The names of all owners, landowners, and operators of all properties within 1,000 'I 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 drillin for as. A copy of the notice sent by certified mail to the owners, landowners and operators V described above, the date of mailing, and the addresses to which the notice was (\ sent. (./' An affidavit by a person acquainted with the facts verifying that all facts are true and ^ that the lat correctl ortra s ertinent and re uired data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), 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. ~ Ç'5? )y x . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICA nON 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. 571 ) ) NB No.3 ) Exploratory Gas Well ) ) September 11, 2006 IT APPEARING THAT: 1. Teck Cominco, by letter dated June 14, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 27, 2006, has requested the Commission issue an order in conformance with 20 AAC 25.055 (a)(4) allowing testing and production of the NB No.3 ("NB-03") 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 1,655 feet from the west line and 1,855 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 June 30, 2006, 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 1,655 feet from the west line and 1,855 feet from the south line of Section 17, T31N, RI8W, Kateel River Meridian. 2. NB-03 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 about 1-112 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. 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 Conservation Order 571 September 11, 2006 Page 2 of2 . . NB-03 be placed closer than 3,000 feet to offset non-conventional gas wells NB- 02, NB-04, and NB-05. 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-03. 8. The Commission received no objections or protests from the public notice regarding the NB-03 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- 03 well gas exploration well. 2. Granting a spacing exception to allow drilling, testing, and regular production of the NB-03 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 of20 AAC 25.055 for the purpose of drilling, completion, testing and regular production of the NB-03 gas exploration well is granted. ~ Daniel T. Seamount, Jr., Commissioner AS 31.05.080 provldì:!;''th'ãf'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 re uest is deemed denied (i.e., lOth da after the ap lication for rehearin was filed). dio3-2 (Beluga River), co 571,572,573 (near reig Mine) . Subject: dio3-2 (Beluga River), co 571,572,573 (near red Dog Mine) From: Jody Colombie <jody _ colombie@admin.state.akus> Date: Mon, 11 Sep 200617:02:18 -0800 To: undisclosed-recipients:; BCC: Cynthia B Mciver d <bren_mciver@admin.state.ak.us>, Robert E Mintz <robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.okus>, Terrie Hubble <hubblet1@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unoca1.com>, ecolaw <ecolaw@trustees.org>, trmjr 1 <trmjr l@ao1.com>, jdarlington <jdarlington@forestoi1.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <markdalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <markp.worcester@conocophillips.com>, Bob <bo inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritc alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah 1. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mike1.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, Charles Barker <barker@usgs.gov> , doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobi1.com>, Mark Kovac <yesno l@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>,jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark_hanley@anadarko.com>, loren_leman <loren_leman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak..us>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unoca1.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@exxonmobi1.com>, marty <marty@rkindustria1.com>, ghammons <ghammons@ao1.com>, rmclean <rmclean@pobox.alaska.net>, rnkm7200 <rnkm7200@ao1.com>, Brian Gillespie <itbmg@uaa.alaska.edu>, 'd L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary S gary_sc @dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagno renalaw.com>, Paul Winslow <pmwinslow@forestoi1.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoi1.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@unoca1.com>,jacknewell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nI617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak..blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.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@unoca1.com>, Todd Kratz <ToddKratz@chevron.com>, Gary Rogers <garyJogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak..us>, Ken <ken@secorp-inc.com>, Steve Lambert <salambert@unoca1.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak..net>, Iris Matthews lof2 9/11/20065:02 PM dio3-2 (Beluga River), co 571,572,573 (near red Dog Mine) . . <Iris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, Rob Dragnich <rob.g.dragnich@exxonmobi1.com>, Aleutians East Borough <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Alicia Konsor <alicia_konsor@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinso marathonoi1.com>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Winton GAubert < n_aubert@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoi1.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jim_regg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobi1.com>, akpratts@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>, Paul Bloom <paul_bloom@m1.com>, Sonja Franklin <sfranklin6@blomberg.net> 20f2 9/11/20065:02 PM . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 ú ,¡ ! (L ¡/ ê :tt:A- . . 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. Recusal from Decision ) ) ) ) NB No.3 ) Exploratory Gas Well ) ) ) John K. Norman, Chairman hereby recuses himself from the abo e entitled case. September 8, 2006 Date *3 NB 3-5 Spacing Exceptions . . Subject: NB 3-5 Spacing Exceptions From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 27 Ju12006 06:57:00 -0800 To: "John K. Norman" <john_norman@ <dan _seamount@admin.state.ak.us>, Cathe .ak.us>, Dan T Seamount Foerster y _ foerster@admin.state.ak.us> These spacing exceptions are set for a spacing exeption hearing Augsut 8, 2006. Steve Davies has told me that the agency does not need a hearing. Should I vacate? I "or ti{~ JV / VJY ~ rI 1 of 1 7/27/20066:57 AM :#;;l 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 AO-02614041 F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M Jod Colombie PHONE June 29 2006 peN DATES ADVERTISEMENT REQUIRED: ¿ Anchorage Daily News PO box 149001 Anchorage, AK 99514 June 30, 2006 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~ o Display Classified DOther (Specify) SEE ATTACHED AOGCC, 333 W. 7th Ave., Suite 100 A nchonule. A K 99501 AMOUNT DATE 2 ARD 3 4 02910 ¡:IN 4MnllNT c::v f":f": P~M If": 4f":f":T ¡:v NMR DIST LlQ 05 02140100 73451 2 3 4 REQUISITIONED BY: 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 testing and production of the NB-03 gas exploration well in accordance with 20 AAC 25.055. Teck Cominco, by letter dated June 14, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 27, 2006, has requested the Commission to issue an order in conformance with 20 AAC 25.055 (a)(4) allowing testing and production of the NB-03 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 1,655 feet from the west line and 1,855 feet from the south line of Section 17, T31N, RI8W, Kateel River Meridian. The Commission has tentatively set a public hearing on this application for August 8, 2006 at 1 :30 pm at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on July 16,2006. 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 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on July 31, 2006 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 August 8, 2006 hearing. If you are a person with a disability who may need s . al accommodations in order to comment or to attend the public hearing, please con ct J dy Colombie at 793-1221. Published Date: June 30, 2006 Ad Order # 02614041 Anchorage Daily News . . Anchorage Dally 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 855839 06/30/2006 02614041 STOF0330 $186.44 $186.44 $0.00 $0.00 $0.00 $0.00 $0.00 $186.44 STATE OF ALASKA THIRD JUDICIAL DISTRICT l \l((((((ffr. \\: ~\..Y A. ß,I'I'I". . . . . . ."I'~-::-: .. --- .:~~ :·~O:_~R~..~% - : bt "n' \c, : ::: - . ..-Ug....· ~... - . #:. ..... ~.f]! ___ . ~ -:..~..~h.. ~.:l...\l~ ~. ·:l:)'Of ). .9ßt' :\' ... . . . . . . ,,\ ;,;....., I;:'~'. ,\ \ '.IjIJJÍmJ\\f\ Notice of ..ublic Hearing STATE OF ALASKA AIOSka Oil. and Gas C~ervation Commission Re:Theappllcatlon of Teck ComlilcoAlaska Incorporated ("'I'eck Cominco").for a spaclng-exceptlon to allow the testing and prod!lctlon óf the N B-03 gas exploration well In accordance with 20 AAC 25,055. Téck Comlnco. bY 'Ietter dqtedJune 14. 2006 and received bY the AlasKa 011 and ßasconsediation Commission ("CClmmission") on June 21..2006. has requested theCllmmlssion to issue an order in con- formanc. with 20 AAC 25.055 (a){4) allllwlng test- Ing and, Production of the NB-03 gas ex~loratlon well. whiCh If productive may be open to regulør proØuctionwlthin 3.000 feet of a well copable of producing Îrom the same pOol.. The surface loca- tion oUhis proposed vertical well Is 1.655 feet from the west line and 1.855 feet from the so"th line .of Section 17. T31N. R18W. Kateel River Meridian. 1hll\..l. C~mlssic)Ynl'as téntatlvelYSét. a public hear- In\IW·thls application for August 8.2006 at 1:30 pm at· the Alaska OllMd Gas ConservatlonCommis- sion at 333 West 7th Avenue, Suite 100. Anttlorape. Alaska 99501. A Þerson may request that the teñta- tively schÌ!duleØ hearing be held by filing a writ- ten reqùest with·the Commission no later thpn4:30 pm on Juiy 16..2006. . If a request for. a hearing is noftlmely flied. the Commission may consider the Issuanc.e of an or- der withOut a hearing. T.olearn If the Commission will holØ the public hearing. please'call793-1221. InaØØltion. a person may submit written com'. ments regarding this application to the Alaska 011 and Gas Conservation Commlssian at 333 West 7th Avenue. Suite 100. Anchorage. Alaska 99501. Writ- ten comments must be received no later than 4:30 pm on July 31. 2Ò06 except that If the Commission decides to hold a public hearing. written protest or commel)ts must be received no later than. the con- clusion of the August 8. 2006 hearing. If yoll are aprson 'with a Ølsablllty whomày need sPecial accommodations In order to comment or to attend the public hearing. please contact J"ç, Co- lombie at 793-1221. 1st: John K. Norman Chairman Ad Order # 02614041 published Date: June 30. 2006 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 ot in excess of the rate charged Private"/k .. Not ry Public in and for the State of Alaska. Third Division. Anchorage, Alaska Re: 2 Public Notices . . Subject: Re: 2 Public Notices From: "Ads, Legal" <legalads@adn.com> Date: Thu, 29 Jun 2006 16:23:37 -0800 To: Jody Colombie <jody_colombie@admin.state.ak.us> Hello Jody: Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 855839- Publication Date(s): June 30, 2006 Your Reference Number: 02614041 Cost of Legal Notice: $186.44 Legal Ad .Number: 855851 Publication Date(s): June 30, 2006 Your Reference Number: 02614042 Cost of Legal Notice: $186.44 JULY 4TH HOLIDAY SCHEDULE I WILL BE OUT OF THE OFFICE ON JULY 3RD AND THE ANCHORAGE DAILY NEWS WILL BE CLOSED ON JULY 4TH. IF YOU NEED TO PLACE A LEGAL NOTICE FOR JULY 5TH YOU WILL NEED TO SUBMIT IT ON FRIDAY, JUNE 30TH BY 3:00 P.M. PLEASE LET ME KNOW IF YOU HAVE ANY QUESTIONS ON THIS. I WILL BE BACK IN THE OFFICE ON JULY 5TH. HAVE A VERY SAFE AND HAPPY 4TH, Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 6/29/06 12:49 PM, "Jody Colombie" <jody_colombie@admin.state.ak.us> wrote: 10f2 6/30/20067:56 AM 2 Public Notices . . Subject: 2 Public Notices From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Thu, 29 Jun 2006 -0800 Anchor lads@adn.com> Thank you Content-Type: application/msword Order form. doc Content-Encoding: base64 Content- Type: application/msword Ad Order form2.doc Content-Encoding: base64 Content-Type: application/msword NB-03 _ Spacing_Exception _ N otice.doc Content-Encoding: base64 Content- Type: application/msword NB-04 _ Spacing_Exception _ N otice.doc Content-Encoding: base64 I of I 6/29/2006 12:53 PM 2 Public Notices NB-03 and NB-04 Red Dog Gas Exploration Project . . lof2 6/29/2006 12:53 PM 2 Public Notices NB-03 and NB-04 Red Dog Gas Exploration Project . . 20f2 6/29/2006 12:53 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 . George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 02-902 (Rev. 3/94) Publisher Iginal Copies: Department Fiscal, Departme , Receiving AO.FRM STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER ADVERTISING ORDER NO. 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 AO-02614041 R o M AOGCC 333 West 7th Avenue. Suite 100 A 11 r.nnr::¡UP A K QQ"O 1 907-793-1221 AGENCY CONTACT DATE OF A.O. peN T o Anchorage Daily News PO box 149001 Anchorage, AK 99514 June 30, 2006 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 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 ~1 ~-' f~ ~WŒI~Œ . . E & P SERVICES, INC. June 12,2006 Mr. Tom Maunder, P.E. Petroleum Engineer Mr. Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 ih 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-03, Red Dog Gas Exploration Project. Dear Mr. Maunder and Mr. Davies: The 2006 Red Dog Shale Gas Exploration project will consist of drilling three (3) shallow shale gas exploration wells to complete a five-spot pattern oftest wells designed to determine if natural gas will desorb in commercial quantities from the organic-rich shales of the Kivalina formation. The first two wells in this five-spot pattern (wells Nos NB-Ol and NB-02) were drilled last year and demonstrated encouraging, but inconsistent results, as dewatering operations were pre-maturely suspended due to the on-set of winter conditions. The operator, Teck Cominco Alaska Incorporated, has elected to complete the five-spot pattern in 2006. Provisions have been made to continuously dewater and flow test the wells through the winter season to adequately evaluate the feasibility of the desorbtion process. Well No. NB-03 is located less than 3000 feet from Well No NB-02 (the second well to be drilled in the pattern). Under 20 AAC 25.055 (a) (4), Well No NB-03 will require a spacing exemption. Precedence for this action was established in 2005 with the granting of a spacing exemption for well No NB-02, which lies less than 3000 feet from Well No. NB-Ol, the first well in the program (See letter dated July 11, 2005 to Tom Maunder P.E. and Steve Davies, AOGCC requesting the NB-02 exemption). 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 ~ . . 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 drillingfor 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: N ana Regional Corporation P.O. Box 49 Kotzebue, Alaska 99752 The operator of the NB-03 well and all the surrounding acreage affected by the Red Dog Gas Exploration Project is: 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 of the well for 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 AAC 25.055 (d) (3): An affidavit by a person acquainted with the facts verifying 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 test wells; to simulate 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 for 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 of 20 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. ~inCerel . ~<'~ f R.C. ardner Sr. Technical Advisor For T eck Cominco Alaska Incorporated Attachments . . AFFIDA VIT This affidavit will certify the 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- 03: the subsequent responses to questions from the AOGCC regarding the drilling and operations procedures relating to the 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. ~ ..// r Signe·~. ~/ R.C. Gardner Sr. Technical Advisor Fairweather E & P Services, Inc. Date: ¿~ / ~ /be> 6' J7 Signed and sworn before me this / b -b/) day of June, 2006: ~(l.tÛ~, Notary Public '1J ~~~'<;¡j,\~'{,,\'~~,,\ ......... J 0 "I ...~ ......po. .. 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