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1016/2005 Orders File Cover Page. doc
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INDEX CONSERVATION ORDER 572
Red Dog Shale Gas Exploration, Well NB-04
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
INDEX CONSERVATION ORDER 572
Order ~
~TextDrafted ¿¡·S by ~ ~
A T~..dby learn - ~(~I<.-~d~ ~j 1'5"(.)6
~xt Sent to Attorney General's Office 4·~
--L. Text Reviewed by Attorney General's Office q . ~
Text Reviewed by Other Agency
Text Sent to Jody for Fonnatting / Publishing
Text Sent to Commissioners
Approved by Commissioners
Published
.
.
SPACING EXCEPTION:
Area/Well: dB... òc./
Operator: ~~ ~(~D
Hearing Date: ~. ~ ZCl:::> ~
/ Application Complete ./šÞ
Additional Infonnation: Requested VIa ; Received VIa
_ Additional Information: Requested VIa ; Received VIa
_ Additional Infonnation Complete
/ Public Notice
Text Drafted on
_ Text Sent to Jody for Fonnatting I Publishing on
~ Publishedin ~~
Published in
on &. 3O.ðb
~
on
Questions for Operator
Questions Drafted
Questions Reviewed: By Tearn ; By Attorney General's Office
Questions Sent to Operator via
Response Received VIa
_ Response Complete
/' Public Hearing V~µ 7·3/
Hearing Held
Additional Infonnation: Requested VIa
Additional Information: Requested VIa
Additional Infonnation Complete
; Received
; Received
DONE
VIa
VIa
· .
CHECKLIST - SPACING EXCEPTION APPLICATION
OPERATO~c.L ¿;~kÞ
FIELD/POOL e~r {~/",-..,::;
WELL NAME /VB - c> y
PROPERTY ID/ LEASE S: ~~ - ;:::::ë:. c::
PIISH: ~ ~4 - ~ "C....
VERTICAL V EXPLORATORY .......... GAS L-
DEVIATED DELINEATION OIL
DEVELOPMENT
SURFACE LOCATION
PRODUCTIVE INTERVALS
(Top and Bottom)
BOTTOM HOLE
¡!CO 'FWL andJ11:J F~L, 5./7, T3/J/ R/~ ~"'(
~ L and 'F L, S. ,T R M
~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
landownership changes,
(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 capable of producing from the same pool,
t/' (4) to drill and complete more than one gas well in a governmental section; or
/ or to drill and complete a gas well closer than 3000' to any well drilling to
or capable of producing from the same pool.
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
spacin exce tion that is drillin for as.
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 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 corredl rtra 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.
(~
6"....~ (II Y
/J>
.
.
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. 572
)
) NB No.4
) 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-04 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 1,100 feet from the west line and 3,770 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 1,100 feet from the
west line and 3,770 feet from the south line of Section 17, T31N, RI8W, Kateel
River Meridian.
2. NB-04 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 1-1/2 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.
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 572
September 11, 2006
Page 2 of2
.
NB-04 be placed closer than 3,000 feet to offset non-conventional gas wells NB-
01, NB-02 and NB-03.
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-04.
8. The Commission received no objections or protests from the public notice
regarding the NB-04 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-
04 well gas exploration well.
2. Granting a spacing exception to allow drilling, testing, and regular production of
the NB-04 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-04 gas
exploration well is granted.
Daniel T. Seamount, Jr., Commissioner
¡;~
oerster, Commissioner
:.-t ,.,~:.~.
tJUl'.J
AS 31.05.080 '¡J1ðVitt at 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., 10th da after the a lication for rehearin was filed).
di03-2 (Beluga River), co 571,572,573 (near re.g Mine)
.
Subject: dio3-2 (Beluga River), co 571,572,573 (near red Dog Mine)
From: Jody Colombie <jody _ colombie@admin.state.ak.us>
Date: Mon, 11 Sep 2006 17:02: 18 -0800
To: undisclosed-recipients:;
BCC: Cynthia B Mciver d <brenßlciver@admin.state.ak.us>, Robert E Mintz
<robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble
<hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw
<ecolaw@trustees.org>, trmjr 1 <trmjr l@aol.com>, jdarlington <jdarlington@forestoil.com>, nelson
<knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton
<mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly nocophillips.com>, "Mark P.
Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@i eper.org>, wdv
<wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, m' son
<mjnelson@purvingertz.com>, Charles O'Donnell <charles.o' ell@veco.c dy L. Skillern"
<SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, Steven R. Rossberg"
<RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan oss <kuacnews@kuac.org>, Gordon
Pospisil <PospisG@BP.com>, "Francis S. Sommer" <S BP.com>, Mikel Schultz
<Mikel.Schultz@BP.com>, "Nick W. Glover" <G m>, "Daryl J. Kle pin"
<KleppiDE@BP.com>, "Janet D. Platt" < e cob
<JacobsRM@BP.com>, ddonkel <ddo . fl.rr.co mckay@gci.net>, Bar F Fullmer
<barbara.f.fullmer@conocophillips.com>, Charles B @usgs.gov> , doug_schultze
<doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobil.com>, Mark ac
<yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@she .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_hanle adarko.com>,
loren_leman <loren_leman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.sta >, John W Katz
<jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, B avelock
<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>, Brandon Gagnon <bgagnon brenalaw.com>, Pa inslow
<pmwinslow@forestoil.com>, Sharmaine Copeland <copela .com>, Kristin s
<kristin_dirks@dnr.state.ak.us>, Kaynell Zem jzeman@m noil.com>, John Tower
<John.Tower@eia.doe.gov>, Bill Fowler <Bill_ wler@anadarko.COM>, Scott Cranswick
<scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe
<lambes@unocal.com>, jack newell <j ack.newell@acsalaska.net>, James Scherr
<james.scherr@mms.gov>, n1617@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@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary Rogers
<gary Jogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_ Copoulos@dnr.state.ak.us>, Ken
<ken@secorp-inc.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>,
Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Iris Matthews
10f2
9/11/20065:02 PM
di03-2 (Beluga River), co 571,572,573 (near re.g Mine)
.
<Iris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, Rob Dragnich
<rob.g.dragnich@exxonmobil.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 <gbrobinson@marathonoil.com>, Cammy Taylor
<Camille_Taylor@law.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Thomas E
Maunder <tom_maunder@admin.state.ak.us>, S hen ies <steve_davies@admin.state.ak.us>,
Keith Wiles <kwiles@marathonoil.com>, De Ga gamble@kakivik.com>, James B Regg
<jim_regg@admin.state.ak.us>, Catherine P Foerster _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@exxonmobil.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@ml.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
~
1 e ( J1
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.
.
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.
Recusal from Decision
)
)
)
) NB No.4
) Exploratory Gas Well
)
)
)
John K. Norman, Chairman hereby recuses himself from the above 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 Jul 2006 06:57:00 -0800
To: "John K. Norman" <john~norman@admin.state.ak.us>, Dan T Seamount
<dan _ seamount@admin.state.ak.us>, Catherine P Foerster <cathy _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?
II' Or
41'; w6/
rI
1 of 1
/
VJY
~
7/27/20066:57 AM
:#a
STATE OF ALASKA
ADVERTISING
ORDER
F AOGCC
R 333 W 7th Ave, Ste 100
o Anchorage, AK 99501
M
¿ Anchorage Daily News
PO box 149001
Anchorage, AK 99514
Type of Advertisement
ARD 02910
:"IN
AMOIINT
c:::v
05
2
3
4
REQUISITIONED BY:
.
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
Legal¡;g
AO-02614042
AGENCY CONTACT
DATE OF A.O.
Jod Colombie
PHONE
June 29 2006
PCN
DATES ADVERTISEMENT REQUIRED:
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
o Display
Classified
DOther (Specify)
SEE ATTACHED
AOGCC, 333 W. 7th Ave., Suite 100
Anchonul"e. AK 99501
AMOUNT DATE
r:.r:.
02140100
ProM
NMR
Ir:.
Ar:.r:.T
:"v
DIST LlQ
73451
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-04 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-04 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 1,100 feet from the west
line and 3,770 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 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 ih Avenue, Suite 100,
Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on
luJy 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.
cial accommodations in order to
ody Colombie at 793-1221.
Published Date: June 30, 2006
Ad Order # 02614042
Anchorage Daily News
.
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
855851 06/30/2006 02614042 STOF0330 $186.44
$186.44 $0.00 $0.00 $0.00 $0.00 $0.00 $186.44
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 fOregOin~ication is not in excess of the rate charged
p,ivate indiVid,#
/'~
¿
and sworn to me before this date:
Nota y Public in and for the State of Alaska.
Third Division. Anchorage, Alaska
\\(1 ((((((((/:
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Notl/:e Of PUblic: Hearing -:,;
STATi!OF ALAS!<A .
AlaskOOiI ánd, G~ÇìlnservGtlon c:ommlssion
".Il~·~!- ". /", ..................',
Re: The apPUcatiorl, i,Øt Teck com, Inco Aloska
Incorporated (~"eck Cominco") for 0' ,
spacing eX¢eptlbn to allow the testing and
production of theNli-04 gas explotatlonwell
on occordanc:e, with 20 AAC 25.~5.
TeckComlnoo' by letter dated Ju,", 14~ 2006 and
recelv,edby the"Alasko Oil and Gas COnservation
Commission .c~'èommission") on June 27,2Q06, haS
requested the Comml,ssion to, issue an order In con-
formance with 29 AAC 25.055 (a)(4) ollÒwlng test.
,lng Gnd proéiuchon of the N ~-04 gas exploration
well, Whi~i"¡Pr9ductive may beo!>en ta regular
productiotY'wlthln 3,000 f!l8t of a we¡IcaPoþle of
producing from the same pool. T",surface loca-
tion of thiS proPÒSed vertical well is 1,100 teet from
the. west line and 3,770 feetfram thesoufh line of
Section 17" T31N, R18W, Kateel River i'J\eridiøn.
The Comlnisslon haS tentatively set (I pUblic hear'
.. ing on this ClPplicatlon for August 8,,2006 Qt. 1:30 PITI
oJ the Alaska Oil and GasConservofionC(lmmls-
slon at 333 West 7th Avenue, Suite .100, Anchorage"
Alaska 99501. A person may request ,thaf the tenta.
tlv,ly scheduled hearing be held by filing a writ.
ten request with the Commission no 'oter than 4:30
pm on July 16,2006.
If a request for ahearinsi is not timely fIled,the
Commission, may consider the Issuance of an or·
def without a hearing. To learn If the Commission
w1ll hold the publiC hearing, plllase call 79;J-1221.
I n addition, 0 person may submit written com.
ments regarding this application to the 'Alaska 011
and Gas Conservotloh Comml,ssion at 333 Wè!!t 7th
Avenue, SuIte 100, 'Anchorage, Alaska 99501. writ-
ten comments must be received no .later than 4:30
pm on July 31, 2006 excePtlhat If the Commission
decides to hold o·publichearin9., written protest or
comments must be received no later. than the c:on-·
clusion. of the August 8,2006 hea·ring.
If YOU are a person with a disability wllo may need
special accommodatl,ons In order to comment or .to
attend the public hearing, please conta,. ct Jody Co-
lombie at 793-1221.
Is/: John K. NOrman
Chairman
Ad Order # 0261404.2 ' .;
Published ,Date: June 3th 2,006 . .
,
Re: 2 Public Notices
.
.
Subject: Re: 2 Public Notices
From: "Ads, Legal" <legalads@adn.com>
Date: Thu, 29 100 2006 16:23:37 -0800
To: Jody Colom
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
6/30/2006 7:56 AM
2 Public Notices
.
.
Subject: 2 Public Notices
From: Jody Colombie <jody _ colombie@admin.state.ak.us>
Date: Thu, 29 Jun 2006 12:49:22 -0800
To: Legal Ads Anchorage Daily News <legalads@adrt.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_ Notice.doc
Content-Encoding: base64
Content- Type: application/msword
NB-04 _ Spacing_Exception _N otice.doc
Content-Encoding: base64
1 of 1
6/29/2006 12:55 PM
2 Public Notices NB-03 and NB-04 Red Dog Gas Exploration Project
.
.
Subject: 2 Public Notices NB-03 and NB-04 Red Dog Gas Exploration Project
From: Jody Colombie <jody _ colombie@admin.state.ak.us>
Date: Thu, 29 Jun 2006 12:52:43 -0800
To: undisclosed-recipients:;
BCC: Cynthia B Mciver <bren_mcíver@admin.state.ak.us>, R
<robert_mintz@law.state.ak.us>, Christine Hansen <c.hansen
<hubbletl@bp.com>, Sondra Ste an <Stewm @BP.co
<ecolaw@trustees.org>, trmjrl < r1@aol.co , shaneg < e
<jdarlington@forestoil.com>, n <knelson@petroleumnews.co
<cboddy@usibelli.com>, M n <markd n@hdrin m>, S
<shannon:donnelly@c co om> "M orce
<markp.worcester@c 0 Bob <
tjr <tjr@dnr.state.ak.u bbrit @alask
Charles O'Donnell <ch les.o' cO.com>,
"Deborah 1. Jones" <J sD6 >, "Steven R. ssberg" <Ros
<lois@inletkeeper.org>, Dan B kuacnews@kuac.org>, Gordon
"Francis S. Sommer" <Sommer .com>, Mikel Schultz <Mikel.
Glover" <GloverNW@BP.com , 1 J. Kleppin"<KleppiDE@BP.
<PlattJD@BP.com>," sanne cobsen" <JacobsRM@BP.com>
mckay <mckay@gc' Imer <barbara.f.fullmer@co
<barker@usgs.gov> _schultze@xtoenergy.com
<hank.alford@e ac <yes 01 @gci.net>,
<gspfoff¡ . e dy@shell
<fred.stee m.com>,jejon
<dapa@alas gci.net>, eyancy
<james.m:ruud@conocophilli s.com t Lively <mapalaska@
buonoje <buonoje@bp.com>, Mark ey <mark_hanley@anadar om>, loren_Ie
<loren_leman@gov.state.ak.us>, Jul Houle <julie_houle@dnr.state.ak.us>, John.W
<jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga~org>, Brian
<beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@
"John S. Haworth" <john.s.haworth@exxonm:obtl.com>, marty <marty@rkindustrial.co
<ghamm s@aol.com>, clean < clean@pobox.alaska.net>, mkm7200 <mkm7200
Brian G esþie <i±bm aa.ala u>, David L Boelens :<dboelens@aurorapower.c
Durke DURKEE@ G.co ary Schultz <gary..:..schultz .state.ak.us>, Wa
<RAN . R@petro-c a.ca> don Gagnon <bgagnon law.com>, Paul Wi
<pmwinslow@forestoil.com>, aine Copeland <copela .com>, Kristin Dirks
<kristin_dirks@dnr.state.ak.us>, ell Zeman <kjzeman@marathonoiLcom>, John T
<John.Tower@eia. >, Bill ler <Bill_Fowler@anadarko.COM>, Scott Cranswick
<scott. swick@m , Br McKim. <mckimbs@BP.com>, St be
<lam cknewe csalaska.net>, Ja
<jame . ophi om, Tim Lawlor J-awlor@ak.blm.gov>,
Lynnda Jerry De efs <Jerty.C.Dethlefs@conocophillips.com>,
crockett og,Lorg, T ffield@aoga.org>, Jon Goltz
<Jon.Goltz@conocop elman <roger.belm onocophillips.com>, Mindy Lewis
<mlewis@brenalaw.c 'arty <moriarty@aoga.org>, tty aro <palfaro@yahoo.com>,
Jeff <smetankaj@uno Kratz <ToddKratz@chevr ary Rogers
<garyJogers@revenue. te.ak.us>, . hur Copoulos <Arthur_C dnr.state.ak.us>~ Ken
<ken@secorp-inc.com>, Steve Lambert <salambert@unocal.com>, Joe cks <news@radiokenai.com>,
.rr.com>,
, ghammons
l.com>,
, Todd
of2
6/29/2006 12:55 PM
2 Public Notices NB-03 and NB-04 Red Dog Gas Exploration Project
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20f2
6/29/2006 12:55 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 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
I
02-902 (Rev. 3/94)
PUbliShe.ginal Copies: Department Fiscal, DepartmAeceiVing
AO.FRM
STATE OF ALASKA
ADVERTISING
ORDER
NOTICE TO PUBLISHER
ADVERTISING ORDER NO.
INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO 02614042
AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF -
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
F
R
o
M
AOGCC
333 West 7th Avenue. Suite 100
Anr.hor:H1P AK QQ'iOl
907-793-1221
AGENCY CONTACT
DATE OF A.O.
DATES ADVERTISEMENT REQUIRED:
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
helshe 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~ ~WŒì~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-04, 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 of test wells designed
to determine if natural gas will desorb in commercial quantities rrom 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-04 is located less than 3000ft rrom wells No. NB-01, NB-02, and NB-03.
Under 20 AAC 25.055 (a) (4), Well No NB-04 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 rrom 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 infonnation is submitted on behalf of Teck Cominco Alaska Incorporated
in support of this application for a spacing exemption:
1. 20AAC 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 drillingfor 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-04 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 confinn 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
detennine relative penneability through simulation history matching of the gas, water,
and pressure data obtained from producing the five-spot wells; and to prove the
capabilities ofthe 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 ftactures 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.
~. Si..n. ce (' .~ /. .
~¿r~
. . Gardner
Sr. Technical Advisor
For Teck Cominco Alaska Incorporated
Attachments
.
.
AFFIDA VIT
This affidavit will certify the I, R.C. Gardner, am acquainted with the infonnation in the
Application of Pennit to Drill for the Teck Cominco Alaska Incorporated Well No. NB-
04: 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 th,;: facts presented in these documents
are true, and correctly portray the pertinent and required data.
~
Signed: ~c
R.Co GOner·
Sr. Technical Advisor
Fairweather E & P Services, Inc.
Date: ~~ ~.b
.~
Signed and sworn before me this ;)7 day of June, 2006:
. dtÞ ;)~Q~
Lisa Love/ Larmi, Notary ub/le
Notary puM¥&ommissÎon Expires February 15.200,\
~"('"
~.
Red Dog Mine
Shallow Gas Testing Program
2005 North Basin
Access Roads
2005 Proposed Gas
Testing Well Sites
* 2005 Initial Test Well Sites
"* Follow-up Test Well Sites
2005 Proposed Access
Road Alignments
Â/2005 Proposed Alignment
NFofIOW-uP Program Alignment
At" 2004 Proposed Road Alignment
/\I 300ft Creek Sel-back Buffer
.
NB2005-Gas- Test-Plan.àpr
Ò9 November 2004