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Home My WebLink AboutCO 576 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 C direct inspection of the file. o 57 fa Order File Identifier Organizing (done) o Two-sided 1111111111111I11111 o Rescan Needed 11111111I11 \1111111 RES CAN ~olor Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, Norrype: D Poor Quality Originals: OVERSIZED (Non-Scannable) o Other: o Logs of various kinds: NOTES: Date W /a-q/oh I I Date: 11 / ~q / tJ Iø I I o Other:: BY: ~ /5/ M~ Project Proofing 1111111111111111111 MP BY: ç Mari0 /5/ = TOTAL PAGES f7 /,., {J (Count does not include cove~M 15/ V I V Scanning Preparation BY: x 30 = Date: I + Production Scanning 1111111111111111111 Stage 1 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ~YES ÇMaria~ Date: ( I / ~q / () 6 If NO in stage 1, page(s) discrepancies were found: YES BY: /51 NO VV1 f Stage 1 BY: NO Maria Date: /5/ 1111111111111111111 Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: /51 Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page.doc . . Index Conservation Order 576 Nicolai Creek No. 10 1. May 30, 2006 2. June 23, 2006 3. June 26, 2006 4. August 7, 2006 5. ----------------- Aurora Gas Application for Spacing Exception Nicolai Creek #10 Notice of Hearing, affidavit of publication, address and e-mail notifications US Dept of Interior lease case abstract US Dept of Interior lease case abstract Various e-mails Conservation Order 576 . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Aurora Gas, LLC ) for an order granting an exception ) to the spacing requirements of 20 AAC ) 25.055, allowing drilling, completion, ) testing and regular production of a gas well ) drilled within 1,500 feet of a property line ) ORDER CLOSING DOCKET BY THE COMMISSION: Conservation Order No. 576 Nicolai Creek Unit No. 10 Delineation Gas Well October 2, 2006 The Commission has the closed the Docket in the above captioned matter. DATED AND EFFECTIVE at Anchorage, Alaska and this 2nd day of October, 2006. BY DIRECTION OF THE COMMISSION Closing Docket CO 576 . . Subject: Closing Docket CO 576 From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Tue, 03 Oct 2006 15:42:45 ~0800 To:êjories@åÚroråpoWiê~¡èom fyi Content- Type: application/msword C0576 closing. doc Content-Encoding: base64 1 of 1 10/3/2006 3 :42 PM . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICA nON OF Aurora Gas, LLC ) for an order granting an exception ) to the spacing requirements of 20 AAC ) 25.055, allowing drilling, completion, ) testing and regular production of a gas well ) drilled within 1,500 feet of a property line ) Conservation Order No. 576 Nicolai Creek Unit No. 10 Delineation Gas Well October 2, 2006 IT APPEARING THAT: 1. Aurora Gas, LLC ("Aurora") by letter dated May 30, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 1, 2006 requested an order granting an exception to the spacing requirements of 20 AAC 25.055 (a)(2) to allow drilling, completion, testing and regular production of the Nicolai Creek Unit No. 10 ("NCU 1 0") gas delineation well within 1 ,500 feet of a property line. 2. The Commission published notice of opportunity for public hearing in the Peninsula Clarion on June 23, 2006, and in the Anchorage Daily News on July 2, 2006, pursuant to 20 AAC 25.540. 3. No protests to the application or requests for hearing were received. 4. The public hearing was vacated on August 7, 2006. Additional information was requested from Aurora on that same day, and received on August 8, 2006. FINDINGS: 1. NCU 10 is proposed as deviated, gas delineation well with a surface location 1,504 feet from the west line and 1,799 feet from the north line of Section 20, TllN, R12W, Seward Meridian ("SM") and a bottom hole location 308 feet from the east line and 2,099 feet from the north line of Section 19, TllN, R12W, SM. 2. State of Alaska oil and gas lease ADL-63279 includes the western half of Section 20, TllN, R12W, SM. The western half of Section 20, TllN, R12W, SM also constitutes the Northern Participating Area of the Nicolai Creek Unit ("NCU"). 3. Federal lease AA-85789 lies west of, and adjacent to, the Northern Participating Area. 4. The planned path for NCU 10 is based on seismic and nearby well information. Conservation Order 576 October 2, 2006 Page 2 of3 . . 5. The surface location ofNCU 10 and the prospective gas sand intervals lie within the Northern Participating Area. Prospective gas sand intervals and the planned total depth ofNCU 10 lie within Federal lease AA-85789. These prospective gas reservoirs lie within 1,500 feet of the boundary between the Northern Participating Area and Federal lease AA-85789. 6. Gas reservoirs targeted by NCU 10 well lie within 3,000 feet of offset well NCU 3, but are not open to that well. 7. NCU 10 will be the only gas producing well in Section 19, TUN, R12W, SM. NCU 10 may be the second gas producing well in Section 20, TllN, R12W, SM. 8. Aurora sent notice of the application for exception to the well spacing requirements of 20 AAC 25.055 for the NCU 10 well to all owners, landowners and operators within 3,000 feet of the anticipated gas bearing section of the NCU 10 well. 9. The Commission received no comments, objections or protests in response to the public notice regarding the NCU 10 well or to the notification sent by Aurora to all known owners, landowners and operators within 3,000 feet of the NCU 10 well. CONCLUSIONS: 1. An exception to the well spacing requirements of 20 AAC 25.055 (a)(2) is necessary to allow drilling, completion, and testing of gas in the NCU 10 gas delineation well in order to evaluate gas reservoirs in the Beluga and Tyonek formations within the NCU. 2. Granting a spacing exception to allow drilling, completion, and testing of gas in the NCU 10 gas delineation well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. 3. The properties affected by this spacing exception lie within and outside of the boundaries of the NCU. Prior to regular production, the NCU and the Northern Participating Area must be expanded, and a means of allocating production must be established. NOW, THEREFORE, IT IS ORDERED: Aurora's application for exception to the spacing requirements of 20 AAC 25.055(a)(2), for the purpose of drilling, completion, and testing of gas in the NCU 10 gas delineation well is granted. Because the properties affected by this spacing exception are not wholly contained within the NCU, Aurora may not proceed with regular production until the NCU and Northern Participating Area have been expanded to include the acreage affected by NCU 10 and a means of allocating production is established. Aurora must inform the Commission on a monthly basis of progress toward these requirements. Conservation Order 576 October 2, 2006 Page 3 of3 . . Prior to regular production, Aurora must provide a signed, notarized Affidavit of Facts with supporting evidence to the Commission demonstrating compliance with the tenns of the unit agreement, applicable Alaska law and regulations, and applicable Federal law and regulations. Aurora may not place sand intervals common to NCU 10 and nearby NCU 3 on regular production without prior Commission approval. DONE at Anchorage, Alaska and d J onn , Chainnan ø; ~ation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission AS 31. oS\,(1~ ~i:8\:Î~s. th!lt,:~tltifi: 2¡x.d.ays after receipt of written notice of the entry of an order, a person affected by it may file with the ~11Ì~ I -~. fj.,iijr rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of th~dt:r~~,"o=,;t 'Ìng day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the lO-day period" An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the re uest is deemed denied (i.e., 10th da after the a lication for rehearin was filed). . 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, W A 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 ¡eeL- I. ({~IIO ,3 DLf C0576 (Nicolai Creek Creek No. 10) . . Subject: C0576 (Nicolai Creek Creek No. 10) From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Mon, 02 Oct 200609:58:05 -0800 To: undisclosed-recipients:; BCC: Cynthia B Mciver <bren_mciver@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@ .com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjr 1 <trmjr l@aol.com>, jd on <jdarlington@forestoil.com>, nelson <knelson@petroleurnnews.com>, cboddy <cboddy@usibe c >, Mark alton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon. lly@co phillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>~ Bob < 'nlet org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, b <bbri alaska. net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <cha es.o'donnell eco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Debor Jones" <JonesD6@BP.c , "Ste R. Ross " <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Br <kuacnews@kua. >, rdon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mikel.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@exxonmobil.com>, Mark Kovac <yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, j ej ones <j ej ones@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_Ieman <loren_Ieman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <br 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 <itbmg@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>, Paul Winslow <pmwinslow@forestoil.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>,jacknewell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, n16l7@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 lof2 10/2/2006 9:59 AM C0576 (Nicolai Creek Creek No. 10) . . <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>, 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>, Tho Maunder <tom _ maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak. ith Wiles <kwiles@marathonoil.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jimJegg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@c1e . e.net>, Laura Silliphant <laura_silli .state.ak.us>, David Steingreaber <david.e.steingrea r@exxonmobil.com>, akpratts@acsal et, Robe pbell <Robert.Campbell@reuters.com>, Steve Moothart <steve_moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <c1iff@posey.org>, Paul Bloom <paul_bloom@ml.com>, Sonja Franklin <sfranklin6@blomberg.net>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple_davidson@dnr.state.ak.us>, Walter Featherly <WF eatherly@PattonBoggs.com> Content-Type: application/pdf co576.pdf Content-Encoding: base64 20f2 10/2/2006 9:59 AM *5 NCD 10 Spacing Exception Nearing Vacated; Request for Additiona... . . Subject: NCU 10 Spacing Exception Nearing Vacated; Request for Additional Information From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Mon, 07 Aug 200616:36:12 -0800 To: jejones@aurorapower.com, acclifIord@aurorapower.com Ed and Andy, The Commission vacated the public hearing concerning the spacing exception for the Nicolai Creek Unit No. 10 that was scheduled for Tuesday, August 8, 2006. In the Affidavit of Facts accompanying the application for spacing exception, Randy Jones states that Aurora sent notice by certified mail to all potentially affected owners, landowners and operators within 3,000 feet of the portion of the well that is anticipated to be productive. Could you please provide the Commission with copies of the postal return receipts for each affected party? Thanks for your help, Steve Davies AOGCC 907-793-1224 Steve Davies 1 of! 8/9/2006 10:23 AM Public Hearing Nicolai Creek (Aurora) . . Subject: Public Hearing Nicolai Creek (Aurora) From: jody _ colombie@admin.state.ak.us Date: Mon, 07 Aug 200614:08:12 -0800 To: steve _ davies@admin.state.ak.us, cathy Joerster@admin.state.ak.us, tom _ maunder@admin.state.ak.us, john _ norman@admin.state.ak.us, akoilgas _forwarder@admin.state.ak.us, dave Joby@admin.state.ak.us, dan _ seamount@admin.state.ak.us The following meeting has been deleted. Proposed by:Jody Colombie Access level: Normal Importance level: Normal Subject: Public Hearing Nicolai Creek (Aurora) Tuesday, August 8, 2006 Time: 9:00 am to 11:00 am (NAST9NADT) Location: Hearing Room lof! 8/9/2006 10:25 AM . . Subject: Nicolai Creek Unit Records - Need Additional Information From: Stephen Davies <steve_davies@admin.state.ak.us> Date: Fri, 04 Aug 2006 17:49:54 -0800 To: jejones@aurorapower.com., acclifford@aurorapower.com Ed and Andy, During review of the spacing exception records for the Nicolai Creek Unit 10 well, I reviewed the Commission's ownership and designation of operator files for the Nicolai Creek Unit. Notice of Change of OWnership - additional form needed On July 7, 2000, the Commission received a Notice of Change of OWnership from Unocal conveying an undivided 50% working interest ownership to Aurora. Exhibit A of that notice includes the leases in portions of sections 19 and 20 of T11N, R12W, SM that lie within 3,000' of the proposed NCU 10 well. Commission records do not reflect the conveyance of the remaining 50% working interest ownership to Aurora. Could you please provide a Notice of Change of OWnership for the remaining 50% working interest ownership? Designation of Operation - records are complete On July 7, 2000, the commission also received a Designation of Operator form from Unocal and Aurora designating Aurora as the operator of the Nicolai Creek Unit. Exhibit A of that notice includes the leases in portions of sections 19 and 20 of T11N, R12W, SM that lie within 3,000' of the proposed NCU 10 well. This form was approved by the Commission on October 6, 2000. No further action is necessary as our Designation or Operator records are complete for this unit. Thanks for your help in bringing Commission records up to date. Sincerely, Steve Davies Steve Davies . . Notes to File Nicolai Creek Unit No. to Gas Delineation Well Spacing Exception Concern The public hearing for the Nicolai Creek Unit #10 ("NCU 10") well is scheduled for tomorrow at 9 AM. We must decide whether to hold or vacate the hearing this morning. A spacing exception is required for NCU 10 because: a. NCU 10 will be a gas well that lies within 1,500' ofa property line (conflicts with 20 AAC 25.055(a)(2)); b. NCU 10 will lie within 3,000' of existing well NCU 3, which is a well capable of producing ftom the same pool (conflicts with 20 AAC 25.055(a)(4); and c. if pay sands in NCU 10 are opened within Section 20, NCU 10 will be the second gas producer within that governmental section (also conflicts with 20 AAC 25.055(a)(4)). Recommendation Vacate the hearing. Wait on requested ownership paperwork ftom Aurora Gas, LLC ("Aurora") before issuing the order. Description of the Project The NCU 10 gas delineation well is proposed as a deviated hole drilled from a surface location in S. 20, TIIN, RI2W, SM to a bottom hole location about 2,000' to the west within S. 19, TIIN, R12W. Planned total depth for the well is 4,242' MD /3,539' TVD, and the planned trajectory will intersect a series of pay sands that span the boundary between Sections 19 and 20. Protection of Underground Drinking Water Surface casing will be set at 820' MDrrVD in NCU 10 and cemented to surface. Production casing will be set at 4,242' MD/3,539' TVD. Although not specifically mentioned in the drilling program, this casing will also be cemented to surface, as indicated by the estimated cement quantity (8.5" hole, 5.5" casing, 1,143 cubic feet of cement, which gives 10% excess over that required to reach the surface).l Any potential sources of underground drinking water will be protected. Geologic Considerations NCU 10 will test several seismic anomalies in objective sands that are not open to the NCD 3 gas producer. NCD 10 is targeting untested Tyonek sands within the Carya 2-3, 2-4 and 2-5 intervals that are either not present or water-wet in the NCU 3 and 5 wells. Secondary objectives in the Beluga formation ofNCU 10 lie between 850' and 1,150' TVD. Equivalent sands in NCU 3 are behind pipe (not completed). Offset Wells NCU 3 is a gas production well that also lies in Section 20. This well is completed in a Beluga fonnation sand between 1,452' and 1,494' MD, and also in the Upper Tyonek formation Carya 2-1.1, 2-1.2, 2-2.1, 2-2.2, and 2-2.3 sands between 1,900' and 2,380' MD. The plugged back TD of the well is currently 2,319' MD. The perforations in the · e Note to File NCU 10 Spacing Exception Recommendation August 7, 2006 Page 2 of 4 lower part of the Carya 2-2.2 and 2-2.3 sands were plugged with cement to shut off water production.2,3 Well NCU 5 lies near the center of Section 19. This well was drilled and then plugged and abandoned during 1972. Commission records indicate that this well was properly plugged and abandoned.4 Landownership and Ownership The boundary between Sections 19 and 20 is also the property line that separates State of Alaska lease ADL 63279 (to the east) trom Federal lease AA-85789, which lies to the west. State of Alaska lease ADL 63279 encompasses the W/2 ofS. 20, and it contains the surface location ofNCU 10 along with the upper prospective pay sands. Federal lease AA-85789 encompasses most of Section 19, and it contains the lower prospective pay zones and the planned TD of the well. State Lease ADL 63279 The Dept. of Natural Resources' abstract for land case file ADL 63279 shows that effective August 31,1988 this lease was owned 50-50 by Unocal and Marathon. On July 7,2000, the Commission received a Notice of Change of Ownership rrom Unocal conveying an undivided 50% working interest ownership to Aurora. Exhibit A of that notice includes the leases in portions of Section 20 that lie within 3,000' of the proposed NCU 10 well. The land case file for ADL 63279 indicates that DNR approved Unocal's assignment to Aurora on Dec.4, 2000, effective Aug. 1, 2000. The land case file for ADL 63279 indicates that DNR approved Marathon's assignment of 50% working interest ownership to Aurora on Nov. 14,2000, effective July 1,2000. However, the required Notice of Change of Ownership documents are not in the Commission's files. Aurora is currently searching their files for their copies of these documents. If they are not found, Aurora will initiate a new version with Marathon. Federal lease AA-85789 Federal lease AA-85789 was segregated trom AA-8426 effective November 1, 2003 when some lands were committed to the Nicolai Creek Unit. BLM land records indicate that Aurora owns 1000.!o working interest in AA-85789. The lands included in AA-85789 are NOT committed to any unit, including the NCD. All Federal lands within Section 19 that lie within 3,000' of the proposed well path are within AA-85789, which is owned by Aurora.5 Exhibit A of the Notice of Change of Ownership received rrom Unocal on July 7,2000, includes the rractional E/2 and E/2 of the W/2 of Section 19 as part of the Nicolai Creek Unit and indicates that the number of the affected Federal lease is AA-8426. The map attached to that exhibit indicates Aurora owns 100% of this lease. The lease annotations displayed on the MapMaker's Cook Inlet and Matanuska-Susitna Valley, Alaska, Oil and Gas Activity Map dated February 2004 also indicate that Aurora owns 100% of this Federal lease. Aurora's Affidavit of Facts, submitted with their application for spacing exception on June 1,2006, describes the landowner of the lease as the BLM and "the minerals under said tract are leased to Aurora being our AA-85789 Lease.,,6 Note to File NCU 10 Spacing Exception Recommendation August 7, 2006 . . Page 3 of 4 Operatorship On July 7, 2000, the Commission also received a Designation of Operator form ITom Unocal and Aurora designating Aurora as the operator of the Nicolai Creek Unit. Exhibit A of that notice includes the leases in portions of Sections 19 and 20 that lie within 3,000' of the proposed NCD 10 well. The Commission approved this form on October 6,2000. BLM land records indicate that Aurora owns 1000.10 working interest in AA-85789. Aurora is 100% working interest owner in this lease. BLM assumes that the WIO will be the operator unless notified otherwise. 7 Notification of Affected Parties Surface owners within the affected area are the State of Alaska, the Alaska Mental Health Trust Authority, and Cook Inlet Region, Inc. Landowners are the State of Alaska and the BLM. In addition, there are 21 over-riding royalty owners for the affected leases. The Affidavit of Facts accompanying the application for spacing exception testifies that written notice was provided to all of these parties on May 31,2006.8 In addition, Notice of Public Hearing was published in the Peninsula Clarion on June 23,2006 and in the Anchorage Daily News on July 2, 2006. No protests or comments have been received to date. Conclusions Aurora is the owner of all affected leases. Potentially affected surface owners, landowners and over-riding royalty interest holders have been notified. The well is located more than 3,000' ITom boundary lines where operatorship changes. The casing- cementing programs will protect any potential USDWs. Objective sands are not open in the nearby gas production well. The operation, as planned, will not result in waste. Correlative rights will be protected. Holding a hearing will not better serve the public interest. Steve Davies Á August 7,2006 '·ZÇ·Dtr> 1 Quick calculation by W. Aubert based on information supplied on the 10-401 form submitted for NCU 10 on June 26, 2006. 2 Aurora, 2006, Spacing Exception Application dated May 30, 2006 and received June 1, 2006, p.2; see also Well History File Aurora's Report of Sundry Operations received by the Commission on January 9, 2004. 3 Aurora, 2004, Report of Sundry Operations received by the Commission on January 9, 2004 in Well History File 1670070 4 Wondzell, B., 1995, Plugging and Location Clearance Report dated Dec. 5, 1995 in Well History File 1710300. 5 Melissa Ainsworth and Bob Menill, telephone conference call with Steve Davies, Aug. 7, 2006: Federal lease AA-85789 was segregated from AA-8426 effective November 1, 2003 when some lands were committed to the Nicolai Creek Unit The lands included in AA-85789 are NOT committed to any unit, including the NCU. Lands within S. 19 that are within AA-85789 are: NE/4 ofNE/4 40 acres Note to File NCD 10 Spacing Exception Recommendation August 7, 2006 . . Page 4 of 4 NW/4 ofNE/4 35 acres S/2 ofNE/4 80 acres SE/4 E/20fSW/4 80 acres SE/40fNW/4 38 acres NE/40fNW/4 8 acres (yes, 8 acres) The remaining lands within the NFJ4 ofNW/4 and the NW/4 ofNE/4lie within State of Alaska Lease ADL 389203, which is owned by Aurora according to DNR land case files and mineral estate plat of TlIN, RI2W. 6 Aurora, 2006, Affidavit of Facts attachment to Spacing Exception Application dated May 30, 2006 and received June 1,2006, p.2 7 Melissa Ainsworth and Bob Merrill, telephone conference call with Steve Davies, Aug. 7, 2006: BLM land records indicate that Aurora owns 1000/0 working interest in AA-85789. Since Aurora is 100% working interest owner in this lease, BLM does not require they submit an application to assign operatorship. BLM assumes that the WIO will be the operator unless notified otherwise. 8 Aurora, 2006, Spacing Exception Application dated May 30, 2006 and received June 1, 2006, supplemental Affidavit of Facts, p.2-3 · . CHECKLIST - SPACING EXCEPTION APPLICATION OPERATOR Aurora Gas, LLC. PROPERTY ID/ LEASE 8: ADL 63279 FIELD/POOL Nicolai Creek Unit N. Undef. Gas WELL NAME Nicolai Creek Unit 10 PIIBH: AA8426 VERTICAL EXPLORATORY GAS X DE VIA TED X DELINEATION X OIL DEVELOPMENT SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 1504' FWL and 1799' FNL, 8.20, T11 N, R12 W, 8M 525' FWL and 2021' FNL, 8.20, T11N, R12W, 8M 308' FEL and 2099' FNL, 8.19, T11N, R12W, 8M 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 chan es, X (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 govemmental quarter section; or to drill and complete an oil well closer than 1000' to any well drilling to or ca able of roducin from the same 001, X (4) to drill and com lete more than one gas well in a ovemmental section; or X 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: X 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 X 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 s acin exception that is drillin for as. The names of all owners, landowners, and operators of all properties within 1,000 X 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 X described above, the date of mailing, and the addresses to which the notice was sent. X 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. Text Drafted 14- by i1-/ J . ~ Text Reviewed by Team ':b~'" 6/., j µ-t -I~f 2 ¡e.V~1<J ~ . 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 / Publishing Text Sent to Commissioners Approved by Commissioners Published . . SPACING EXCEPTION: NC-tÅ- /D ( 20~ --Otßð) /f/ ( (þ (A.. ¿ C y-t:.. '-k- ¿( ^, . 4 ~ LLL . ~ 2-OD~ Area I Well: Operator: Hearing Date: / Application Complete ~,/iþ / ~ Additional Information: Requested fJ _ Additional Information: Requested _ Additional Information Complete / Public Noûce ~)~_ /.. ~ Text Drafted on ~ ~þ /' Text Sent to Jody for Formatting / Publishing on "/Í, ßP ~ Poblished in ~I 0.--.- I ~ . 00 ?-;2 _"6' ~ Published in ~ U 171 tt ( 'z) Cñ\ ~ t¿.. on -7/ 'l.-- ..tL. 7ns for Operator \\¡ Questions Drafted J~ Questions Reviewed: By Team _ Questions Sent to Operator _ Response Received ~ Response Complete £ Public Hearing ! ~earing Held V tL. L4.. Ä-d ß '/ _ Additional Information: Requested BiL via <"£C..l,A.; I ~ Received via ~ditional Information: Requested K via ..¿u.c..Aa..; ( ; Received n= via Additional Information Complete VIa ~ Received via ; Received ; By Attorney General's Office via VIa Order v DONE VIa VIa ((;;; ~~ ~4- .~VG-QJ-2006 MON 01:40 PM. Div Energy/SolidMins FAX NO. .271 3933 P. 01 United States Depm1ment of the Interior BUREAU OF LAND MANAGEMENT BRANCH OF ENF...RGY 6881 ABBOTT LOOP ROAD ANCHORAGE, ALASKA 99507-2599 FAX from DIVISION OF ENERGY AND SOLID MINERALS MINERAL LAW Telephone Number: (907) 267-1212 I FAX Number: (907) 267-1304 DATE: 817/06 TO: Steve Davies FAX 276-7542 SUBJECT: AA-85789 Lease Map boundaries Section 19 FROM: Melissa Ainsworth e-mai \: melissa_ainsworth@ak.blm.gov COMMENTS: Original wm be sent in mail to Anchorage, Alaska address. Number of Pages (incJucting cover page): ¡ 1 I ORIGINAL DOCUMENT TO FOLLOW IN THB MAIL: ! YES /xJNO Confidential. If you receive thìs in en'or contact sender and destroy documents. Use other than by addressee is prosecutable by Federal Law. If you have any question$ or if this FAX is received incomplete, please caJl907-267-1246 ask for the Sc:nder :#"3 JUN-26-2006 MON 01: 47 PM. ENERGY & MINERALS FAX NO. 9411f67 1304 P. 01 United States Department of the. Interior BUREAU OF LAND MANAGEMENT BRANCH OF ENERGY 6881 ABBOTT LOOP ROAD ANCHORAGE. ALASKA 99507-2599 FAX/rom DIVISION OF ENERGY AND SOLID MINERALS MINERAL LAW Telephone Number: (907) 267-1212 I FAX Number: (907) 267-1304 DATE: 6/26/06 TO: Steve Davies FAX 276-7542 SUBJECT: Lease AA-85789 Case Abstract FROM: Melissa Ainsworth e-mail: melissa ainsworth@ak.blm.gov COMMENTS: Original will be sent in mail to Anchorage, Alaska address. Number of Pages (including cover page): I 3 I ORIGINAL DOCUMENT TO FOLLOW IN THE MAIL: I ¡YES Ix I NO Confidential. If you receive this in error contact sender and destroy documents. Use other than by addressee is prosecutable by Federal Law. If you have uy questíons or if this FAX is received incomplete, please call 907.267.1246 ask for the Sender JUN-26-2006 MON 01:47 PM4IIj ENERGY & MINERALS FAX NO. W67 1304 P. 02 \,,,_./ " ' -' CP03200R Adm-State: 1\K C..SC serial N\.lm: Case Type: C¡;:je Sti:ltus, Case status 1\.ctn, C.!1$~ $tl>tus Date, 5ureau of L.~n(i M"'rll>gcment Alaska LIS Case Abstract for: hKAA 095789 27 -Jan- 06 P¡;tgc AKM 095'189 .'RC Site code, 311111 O&G Lse NOllc,,,"P Pub Land AcceSSion NUl.' Author12ed Sox Num, ot C~~e Created Dy segr Disp Date: 01-NOV-2003 Location Cede: -------------------- ...------------------" ...--------------------.... ..-----------------------... . .------------------. . .-------- Cu,;tomcr Data Cust Name, AURORA œ.S ~,1C Cu:;t:ld, OOOO~7033 Cust hCidre8:i1' 10333 RICHMOND. SUITEi no Int ReI: Le:eB~e HOUSTON TX 77012 p¢t Int, 100,00000 C\ISt Name: AURORA GAS LLC Custid: 000097033 Cust 1\.d<1re,hi' 1-0333 RICHMOND, SUIT~ '110 Int Rel, Ope~;:¡toI' HOUSTON TX 770<12 Pet Int: 100.00000 ...--------------------.. .--------.-----.-.. ---------------------. "-----------------------. ..-------------------. ---------------.. Admiili~¡;""tivø/StatuB Aç!:ior, D1:\tl:\ De!:e Codc/Descriptioil Remarks Doc Id ore f;mp AY Agcy --------------- .-------- ----_..--- . ..-------- --------..-.. U..$EP-195B 176 Le",,,,,,, T.:,¡:;ucd 940 CAT 01-OCT-195B 225 Effective Date 940 CA'L' IB-JUN-2003 255 Land Statu," Chcc)ted Icl SEE a¡;:N REMARJ<S 940 MKC O~· NOV-2D03 569 Case C"cl:\tcd By Segr SEa ~~OM AA-8426 940 CAT OI-NOV-20D3 102 ¡Uty RÐ.te - 12 1/2% 940 Mt<C 01-NOV-2003 447 Acres-Fed Iil~ lOOt IDI SEE GEN IœMARKS 940 MKC Ol-NO\t-2003 84B Ext By ~rod On ASSoc 111.1 SEE GEN REMARKS 940 MKC 01-NOV-20DJ 093 Ré!ilt<ll Rate Detl Adj $O.~o AC IE/SEE REMK 9dO I4!<C 22-SEP-200S ?i9 Dac Issued 151 SEE a.m IŒMARKS 940 MlCC -----......------------------ ---------------.,.----------------.- .-------------------- .-----------------.---------------. ..-------- No Fi"anc:í"l Actions FOlmd - - - - - - .. - - - .. .. .' '. ., - - - - - - - - - - - - - _. ". . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - . - - - - .. - - - - - - - - - - - _._ - .. . .. - - - - .. - .. - .. - - - - - - - .. no _ _ _ _ _ . _ _ .. _ _ _ _ _ .. Gene""l Remarks IAI ¡mt,o BY PRODUCTION ON PARENT LEJ\6E:a AA-00B46 Ii< 'ADI.. 63279 (FORM¡;:¡U.Y A-34161). LJõ:ME A-3H61 WAS TRANSFERRED TO THE STATE OF AK & LSE # CHANa¡;:D 10 APL 63279. -----_.\. .-------------- --------------P._------------ lal LANDS COMMITTEP TO NICOLI1\. CR~EK UNIT IN LEASE AA-00846 REMAINED IN TI!AT LEASt:. LANDS OUTSIP~: THE UNIT BO!JNPARY WERE SEQREGÀTt.D INTO LEAS);: (M..S5789) .I AS OF H/1/03. IJ\NDS WITHIN LEASE AA 857B9 ARE NOT SUBJECT TO THE N¡COLAI CREEK tMIT Ar;REEMENT. --------------. ------------- ,.------------. Icl A PROTRACTED DIAGRAM O~ PRE SEQREOAT~D LEASE AA-D084~6 WAS CREATED ~Y CADASTRAL 6~RVEY FOR LE1\.SE SEiCKEGATION I\ND [mITIZATION COMI'I:r"rMENT. BASED ON T¡US DIAGRAM TOTAL ~,EASE ACREAGE CHANGED FROM 1738 ACRES TO 1668.30 ACRES ap'~ORE SEGREGATION. ------------.. '. ..----------. .------------- IDI O&G MINER1\L BS~I'ATE IS 100% UßA-SEE PA 50-'6)·0253 ...-----------. .----------- ------------., lEI RENTAL AA'l',; FOR THIS L¡¡M¡;: IS $0. 50 ('~:.R ACRE OR PORTION T¡¡¡¡R~OF. JUN-26-2006 MON 01:47 PM. ENERGY & MINERALS FAX NO. W67 1304 P. 03 \.___J' "\.,.. CP03200¡¡ Bureau of L¿md Manageal""t - Alas.k" ¡,IS 27-J<iln-·05 Adm"State, AI( Ca,;.;. Abstract fQrl AKA1\. 08578~ P¡¡ge .? NO G~~raphic N~mcs FOUr"lÒ --------',-----.---., '"------~. \. _.--_.- -------- -- .. - - - - - - - '. . . - . - - - - - - ,. ----------, --------.. ...-----.. "..------. ,._---_.._. Land D€BCrip~"on Mr Tw,j Rng Sê~ Aliquot $urve'y 'Cd Tr Brk LOt Pi aor NR LS Doc: La pri U.S. RighL"J Fr~c Fmt Tt::!xt Àcr .----- .,-.- , - - - - -- - . ".-------".---- 28 Ill\! 121'1 17 S.?S2 oa ¡22 07 1\1 ~4-SEP-5B 160.0000 28 IlN 12W 1.8 SESE 04 122 07 AI 24-S)¡f'-58 21.4000 28 llN 12w 18 Sl>/SE 04 :L22 07 AI 24-SEP-S8 10.0000 28 UN 12W B E2SW ¡ 04 122 07 AI 24-$);11'·58 80.0000 28 llN 1211 19 NEN!;; ./ 04 122 07 AI 24-SEP-S8 40.0000 28 Ill\! 12W 19 NBNW ./ 04 122 07 ¡II 24-S£P S8 a.oooo 28 UN 12W 13 NWN£ "I 04 122 07 AI 24·$EP-58 35.0000 28 UN 17.1'1 19 S2N,;' wi' 04 1,22 07 AI 24-SEP-58 eo.oooo 28 llN 12\11 19 BE "" 04 122 07 AI 21-8£\' 58 160.0000 28 lIN 12W 19 SENW ./ 04 122 07 AI 24-SEP-58 38.0000 28 11N ¡2N 20 £2 04 122 07 AI 24-S£P-58 320.0000 28 lIl1I 12W 29 .12N\II 04 122 07 ÀI 21-SP-I'·58 80.0000 2B UN 12\11 29 E2SWlifW 04 122 07 AI 24..SEP-S8 20.0000 28 UN 12w 2 s¡ N2lifI.:SE 04 .22 07 AI 24-S£P-58 U.5000 28 UN 121'1 29 N2NES\II 04 122 07 AI 21- ¡;¡;J)'.. 58 20.S000 28 UIII 121'1 29 N2NWSE 04 122 07 AI 24'" SEP- 58 17.9000 28 I1N 121'1 2S¡ NE 04 122 07 AI 24-S£P-58 160.0000 28 UN ;¡'2w .2 9 N'WNW 04 122 07 ÀI 21-SJ;¡¡i·58 40.0000 28 11N 121'1 29 NWSWlifW 04 122 07 AI 24-SEP-5S 10.0000 2B UN 121>/ 29 USS 04550 04 122 07 A¡ 24-S£I'>-58 4.0000 28 Ulif 121'1 3D <:2NI'I 04 122 07 AI 24"SE;p-58 BO.OOOO 28 UN 12W 30 NE 04 122 07 1\.1 24 - SEP- S8 160.0000 28 UN 121'1 30 NESI'I 04 122 07 III 24-SEI'·S8 30.8000 28 UN 121'1 30 NWNESE 04 122 07 AI 24..$EP-58 10.0000 28 UN 121'1 30 NWSE 04 122 07 AI 24-SEP-S9 23.4000 29 UN 1211 30 SW¡'¡O;SE 04 122 07 AI 24-SEp-58 2.5000 Authori2a~"on ISSU",,,, 1623.0000 AdjudlC~tcd Totar, 1623.0000 -----. ,.-------...- ----.. -----...- Totül Cas.. Acres: 1623.0000 End of Cüse: A!<M 08S'16~ JUN-26=.2006 MON 02:11 PM. Di, Energy/Sol idMi 0$. FAX NO. .271 3933 P. 01 Bureau of Land Management Alaska State Office 222 W. 7th, #13 Anchorage, Alaska 99513~7599 (907) 271-4426 Fax: (907) 271-5479 FAX TRANSMISSION COVER SHEET Date: June 26,2006 To: STEVE DA VIES @ AOaGG Fax: 276·7542 Re: AA-8426 ALIS ABSTRACT Sender: Bob Merrill YOU SHOUW RECEIVE 6 PAGE(S), INCLUDING THIS COVER SHEET. IF YOU DO NOT RECEIVE ALL THE PAGES. PLEASE CALL (907) 271-4426. Hi, Steve. Here's the abstract for AA-8426. Melissa said she faxed you the one for AA-85789. Let me know if you need anything else. Bob JUN-28-2008 MON 02:12 PMADiv EnergY/So!idMins FAX NO, .2713933 BLM-Alaska ALlS - CasMstract of AKAA 008426 Bureau of Land Management - Alaska LIS-Online Case Abstract for: AKAA 008426 Case Serial Num: AKAA 008426 311111 O&G Lse Noncomp Pub Lan Case Status: Authorized Case Status Actn: Case Created By Segr Case Status Date: FRC Site Code: SEA Accession Num: Box Num: of Disp Date: Location Code: Case Type: 17-SEP-1973 ---~~~---------------~--~~-----------~~~-~-------------~-------------~-~-- Custid: Cust Name: Cust Address: Customer Data 000097033 Int Rei: Lessee AURORA GAS LLC 10333 RICHMOND1 SUITE 710 HOUSTON TX 77042 p, 02 Page 1 of 5 Pct In!: 100.00000 -----------~-------------~~-~~-----------~~-~~~-------------~~------------- Administrative/Status Action Data Date Code/Description Remarks -------.... Doc ID Ofc Emp ........,.,-----'-- ------~~~----------- ----~~....~--~------------- 01-0CT-1958225 Effective Date 01-0CT-1958102 Rlty Rate -121/2% 01-0CT-1969057 Acct Trfd To Afs 21-MAY-1973226 Lease Committed To LONG LAKE UNIT U 01-AUG-1973684 Unit Agrmt Terminate LONG LAKE UNIT 01-AUG-1973648 Ext By Prod On Assoc /A/ SEE GEN REMARKS 17-SEP-1973 569 Case Created By Segr FROM A-034161 19-0CT -1982955 Escrow I d Compltd-An -- 25-MAR- 1988 058 Acct Trfd Afs To Bra RENTAL RATE .50/AC 01-AUG-1988562 Asgn Fìled 17-AUG-1988250 Held For Rejection 17 -AUG-1988112 Addtll nfo Rqstd 26-AUG-1988562 Asgn Filed 31-AUG-1988562 Asgn Filed 01-SEP-1988 564 Asgn Effective 01-SEP-1988 564 Asgn Effective 12-SEP-1988 563 Asgn Approved 100% TEXACO/UNOCAL 12-SEP-1988 563 Asgn Approved 50% UNOCALlMARATHON -- 07-JAN-1993 975 Land Description Lac -- 09-AUG-2000562 Asgn Filed 09-AUG-2000562 Asgn Filed 08-JAN-2001 560 Trf Of Orr Filed 12-JAN-2001 563 Asgn Approved TEXACO ASSIGNMENT CORRECTED ASSIGNMENT 50% UNOCALlAURORA http://alisweb/perl-bin/alis/a bstractldo _abstract_ 3200. pI ~.....- -- AJA SAF 982 SAF AJA SAF AJA SAF 940 MKC 940 MKC 940 MKC DAOMFD 982 SAP 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 982 SAF 940 MKC 940 MKC 940 MKC 940 MKC 6/26/2006 JUN-26-2006 MON 02:12 PMIDiV Energy/SolidMins FAX NO, .2713933 BlM-Alaska ALlS - Cas straet of AKAA 008426 12-JAN-2001 563 Asgn Approved 50% MARA THON/AURORA -~ 12-JAN-2001 113 Addtllnfo Recd AURORA SIGNATORY 01-FEB-2001 564 Asgn Effective 01-FEB~2001 564 Asgn Effective 01-MAY-2001560 Trf Of Orr Filed 22-AUG-2001892 Address Change Filed AURORA GAS, LLC 23-DEC-2002575 Apd Filed NICOLAI CREEK NO.9 24-JAN-2003 576 Apd Approved NICOLAI CREEK NO.9 18-JUN-2003 447 Acres-Fed Int 100% /D/ SEE GEN REMARKS 18-JUN-2003 255 Land Status Checked ISI SEE GEN REMARKS 01_NOV-2003226 Lease Committed To NICOLlA CREEK UNIT U 01-NOV-2003651 Held By Prod - Alloc /E/ SEE GEN REMARKS 01-NOV-2003259 Lease Segregated INTO AA-85789 11-DEC-2003644 Memo Of 1st Prod-Act NICOLAI CREEK NO.9 22-SEP-2005 718 Dee Issued ICI SEE GEN REMARKS p, 03 Page 2 of 5 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKA 940 MKA 940 MKC 940 MKC 940 MKC 940 MKC 940 MKC 940 MKA 940 MKC ------~~~~~~~--------------~~~~~----------------~~~~---------------~~----- Financial Action Data Date Code/Description Ofe Emp Money Amt Acct Adv Asmt ---------- -------------------~~~~ --....... --- ---.......-.......------ --..................--- 01~AUG-1988 072 Filing Fee Received 982 BHN 25.00 - 31-AUG-1988 072 Filing Fee Received 982 BHN 25.00 - 01-0CT-1988 084 Rental Received Sy M 982 BHN 869.00 -- 05-SEP-1989 084 Rental Received By M 982 BHN 869.00 -- Q4-SEP-1990 084 Rental Received By M 982 BHN 869.00 -- 06-SEP-1991 084 Rental Received By M 982 BHN 869.00 -- 18-SEP-1992 084 Rental Received By M 982 BHN 869.00 -- 20-SEP-1993 084 Rental Received By M 982 BHN 869.00 -- 26-SEP-1994 084 Rental Received By M 982 BHN 869.00 - 25-SEP-1995 084 Rental Received By M 982 BHN 869.00 -- 23-SEP-1996 084 Rental Received By M 982 BHN 869.00 -- 23-SEP-1997 084 Rental Received By M 982 BHN 869.00 -- 21-SEP-1998 084 Rental Received By M 982 BHN 869.00 -- 17-SEP-1999 084 Rental Received By M 982 BHN . 869.00-- o9-AUG-2000 072 Filing Fee Received 952 CAT 25.000021399 09-AUG-2000 072 Filing Fee Received 952 CAT 25.000021400 08-JAN-2oo1 072 Filing Fee Receiv~d 952 JLF 75.00 0022074 05-MAY-2001 072 Filìng Fee Received 952 CAT 25.00 0022559 ______________________~___~___~____M______________~~---~~---------------~--- General Remarks fAl LEASE HELD BY PRODUCTION OF BASE LEASE A-034161 WHICH HAS BEEN TRANSFERED TO THE STATE. LEASE WITHIN NICOLAI CREEK UNIT - A STATE SHUT-IN http://alisweb/perl-bin/alis/abstractldo _ abstract_ 3200 .pl 6/26/2006 JUN-26-2006 MON 02:12 PMADiv Energy/SolidMins FAX NO, .2713933 BLM-Alaska ALlS - Cas~stract of AKAA 008426 GAS UNIT. NO ANCSA ESCROW. _~_________________~~~~______________~w_________ LEASE DESCRIPTION CORRECTED IN ALlS ON 1/13/2003 TO REFLECT THAT PART OF USS 4550 SITUATED IN SEC. 29. T11 N, R12W~ S.M. WAS INCLUDED IN THE ORIGINAL LEASE DESCRIPTION, AS NOTED IN A MESSAGE FROM THE BlM'S DIVISION OF CONVEYANCES. PER THAT MESSAGE. THE ACREAGE OF THAT PORTION OF USS 4550 WIIN SEC. 29 WAS SPECIFIED AS 4 ACRES. CONSEQUENTLY, THE ACREAGE SHOWN FOR SEC. 29 WAS REDUCED FROM 400 TO 396. TO EXCLUDE THE USS 4550 ACREAGE WHICH IS SHOWN SEPARATELY. THIS CHANGE HAS NO BEARING ON THE TOTAL LEASE ACREAGE, RENTAL PAYMENTS REQUIRED, ETC. -------~------~---------------~-~~-------------- LEASE BOND LOCATED IN BLM-AK BOND FILE AA-085760 IBI A PROTRACTED DIAGRAM OF PRESEGREGA TED LEASE AÄ-008426 WAS CREATED BY CADASTRAL SURVEY FOR LEASE SEGREGATION & UNITIZATION COMMITTMENT. BASED ON THIS DIAGRAM TOTAL LEASE ACREAGE CHANGED FROM 1738 ACRES TO 1668.30 ACRES BEFORE SEGREGATION. --------------~~-~------------------------------- ICI LANDS COMMITTED TO NICOLAI CREEK UNIT IN LEASE AA-008426 REMAIN IN THIS LEASE. LANDS OUTSIDE THE UNIT BOUNDARY WERE SEGREGATED INTO LEASE AA-85789. LEASE AA-008426 IS SUBJECT TO NICOLAI CREEK UNIT AGREEMENT TERMS. ________________~___~~~_~_______________ft~~________ 101 O&G MINERAL ESTATE IS 100% USA-SEE PA 50-67-0253 --~~-----------------------~---------------------~- lEI LEASE AA-008426 IS HELD BY PRODUCTION ON WELL NC #9 AND LEASE COMMITMENT TO NICOLAI CREEK UNIT. IT IS STILL EXTENDED BY PRODUCTION FROM ASSOCIATED PARENT LEASE ADL 63279 (FORMERLY FEDERAL LEASE A-034161). ----------~--~-~------~------------------~-~--~---------------~~-----~~-- Geographic Names NICOLAI CREEK UNIT http://alisweb/perl-bin/alis/abstractldo_abstracC3200.pl P. 04 Page 3 of 5 6/26/2006 JUN-26-2006 MON 02:12 PMaDiv Energy/SolidMins FAX NO, .2713933 BLM-Alaska ALlS - Casmstract of AKAA 008426 p, 05 Page 4 of 5 -----~--------------------~~-------------~~~--~~-----------"~---~------------- Land Description Mr Twp Rng See Aliq uot Survey ID Tr Blk Lot Dj Bor NR LS Acres - -_....- ........-- -- --1.........---- ,...--.....------ ....... ---- --.... ...... --- - -- -_..........1--""--- 28 11N 12W 17 52S2 -- ~ -- 04 122 07 SE 160.0000 28 11N 12W 18 SESE -- - -- 04 122 07 SE 21 .4000 28 11N 12W 18 SWSE -- ...- -- 04 122 07 SE 10.0000 28 11N 12W 19 E2SVY , -- -- -~ 04 122 07 SE 80.0000 28 11N 12W 19 NENE · -- -- -- 04 122 07 SE 40.0000 28 11N 12W 19 NENW · -- -.... - 04 122 07 SE 8.0000 28 11N 12W 19 NWNE · -- -- -~ 04 122 07 SE 35.0000 28 11N 12W 19 S2NE . -- -- - 04 122 07 SE 80.0000 28 11N 12W 19 SE . - -- -- 04 122 07 SE 160.0000 28 11N 12W 19 SENW -- ........ -- 04 122 07 SE 38.0000 28 11N 12W 20 E2 -- -- -- 04 122 07 SE 320.0000 28 11N 12W 29 E2NW - . 04 122 07 SE 80.0000 28 11N 12W 29 E2SWNW -... ....... -- 04 122 07 SE 20.0000 28 11N 12W 29 N2NESE -- ~ - 04 122 07 SE 11.5000 28 11 N 12W 29 N2NWSE -- -- -- 04 122 07 SE 17.9000 28 11 N 12W 29 N2SESW -- - - 04 122 07 SE 20.5000 28 11 N 12W 29 NE - -- -- 04 122 07 SE 160.0000 28 11 N 12W 29 NENWSW -- -- - 04 122 07 AI 10.0000 28 11 N 12W 29 NWNW - -- -- 04 122 07 SE 40.0000 28 11 N 12W 29 NWNWSW 04 122 07 AI 10.0000 28 11 N 12W 29 NWSWNW - -- -- 04 122 07 SE 10.0000 28 11 N 12W 29 SENWSW -- - ~ 04 122 07 AI 1.2000 28 11 N 12W 29 SWNWSW - -- -- 04 122 07 AI 1.8000 28 11 N 12W 29 SWSWNW -- - -- 04 122 07 AI 10,0000 28 11 N 12W 29 -- USS 04550 ....... ~... -- 04 122 07 SE 4.0000 28 11 N 12W 30 E2NW -- - -- 04 122 07 SE 80.0000 28 11 N 12W 30 NE -- -- -- 04 122 07 SE 160.0000 28 11 N 12W 30 NENESE -- -- - 04 122 07 AI 10.0000 28 11 N 12W 30 NESW -..... -- -- 04 122 07 SE 30.8000 28 11 N 12W 30 NWNESE -- - -- 04 122 07 SE 10.0000 28 11 N 12W 30 NWSE - -- -- 04 122 07 SE 23.4000 28 11 N 12W 30 SENESE -- -.... -~ 04 122 07 AI 2.3000 28 11 N 12W 30 SWNESE -- -- -- 04 122 07 SE 2.5000 Authorization Issued: 45.3000 Segregated: 1623.0000 Adjudicated: 1668.3000 http://alisweb/perl-bin/alis/abstractldo _ abstracC 3200. pi 6/26/2006 JUN-26-2006 MON 02:12 P~Div Energy/Sol¡dMins FAX NO. .2713933 BlM-Alaska ALlS - Cas~stract of AKAA 008426 P. 06 Page 5 of 5 -_.---------~--~~ ------_......~- Total Case Acres: 1668.3000 End of Case: AKAA 008426 ----------------~~~~-~-------------------~~~~~------------------~~-----~ No warranty is made by the Bureau of Land Management as to the accuracy, reliability, or completeness of these data. Refer to specific BLM case files for official land status information. http://alisweb/perl~bin/alis/abstractldo_abstracC3200.pl 6/26/2006 =»-;1 STATE OF ALASKA It NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING QRDER NO, CERTIFIED AO-02614040 AFFIDAVIT OF PUBLICATION (PART2 QF THIS FORM) WITH ATTACHED CQPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie June 20 2006 0 Anchorage, AK 99501 PHONE PCN M - I {Q()7ì 7Q1 _1,),'1 DATES ADVERTISEMENT REQUIRED: T Peninsula Clarion June 23, 2006 0 Kenai, AK 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 X Legal 0 Display o Classified DOther (Specify) SEE A TT ACHED SENq IN"OIÇ~J~or~!IJ~!Ç""'~J AOGCC, 333 W. 7th Ave., Suite 100 11 TOTAL OF 61 PAGE 1 OF ALL PAGES$ 'TO ."',,, ',;" ':, "'", Anchor3i!e AK 99'\01 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 ¡:'IN 4MnllNT ~v f'.f'. Þf.:M If'. 4f'.f'.T ¡:'v NMR DIST LJQ 1 05 02140100 73451 2 3 4 Rlt:e BY: DIVISION APPROVAL: I . ~1Ã Iffi)o I v---" ll! U J 02-902 (Rev. 3/94) PUbliShe&inal Copies: Department Fiscal, Departm.eceiVing AO.FRM STATE OF ALASKA ADVERTISING ORDER SEE BOTTOIIII FOR1NVOICE ADDRESS 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-02614040 F AOGCC 333 West ih Avenue. Suite 100 A nrhor~af' A K QQ"O 1 907-793-1221 AGENCY CONTACT Tnrlv r . PHONE I (Q07\ 7Q~ _1?? 1 DATES ADVERTISEMENT REQUIRED: DATE OF A.O. R o M hint" 20. 2006 PCN T o Peninsula Clarion June 23,2006 Kenai, AK THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that 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 02-901 (Rev. 3/94) AO.FRM 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 e 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 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-02614039 F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 M AGENCY CONTACT DATE OF A.O. Jod Colombie PHONE June 20 2006 PCN DATES ADVERTISEMENT REQUIRED: T Alaska Journal of Commerce o 301 Arctic Slope Ave #350 Anchorage, AK 99514 July 2, 2006 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS 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 AOGCC, 333 W. 7th Ave., Suite 100 Anchoral1'e. AK 99501 AMOUNT DATE ARD 02910 4 ¡::Itd 4MnlltdT ~v r.r. Pr.M 05 02140100 2 3 Ir. 4r.r.T ¡::v NMR DIST LlQ 73451 DIVISION APPROVAL: STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM PUbliShe.inal Copies: Department Fiscal, DepartmeeceiVing AO.FRM NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO 02614039 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF - ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE 02-902 (Rev. 3/94) F AGENCY CONTACT DATE OF A.O. R o M AOGCC 333 West ih Avenue. Suite 100 Anr.h(mIUP A K QQ"Ol 907-793-1221 PCN T o Alaska Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99514 July 2, 2006 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 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 e . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Nicolai Creek Unit, Nicolai Creek Unit #10 Cook Inlet Basin, Alaska Aurora Gas, LLC by letter dated May 30, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June 1, 2006, has applied for an exception to the well spacing requirements of 20 AAC 25.055 (a)(2) for the drilling, completion and production of the Nicolai Creek Unit No. 10 gas delineation well. The subject well is proposed as a deviated hole with a surface location 1629 feet from the West Line and 1914 feet from the North Line of Section 20 TUN, R12W, Seward Merdian (S.M.) and a bottom hole location 304 feet from the East Line and 2135 feet from the North Line of Section 19, TllN, R12W, SM. The Commission has tentatively scheduled a public hearing on this application for August 8, 2006 at 9:00 am at the offices of 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 July 14,2006. 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 after July 21, 2006. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on August 4, 2006 except that if the Commission decides to hold a public hearing, protests 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 order to comment or to attend the public hear" Special Assistant Jody Colombie at 793-1221. need special accommodations in lease contact the Commission's Published Date: July 2, 2006 AO # 02614039 (Journal of Commerce) Published Date: June 23, 2006 AO # 02614040 (Peninsula Clarion) . .' . PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA }ss: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Nicolai Creek Unit AO-026 14040 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: June 23, 2006 x (lhr). ./;'Jì; ~/C~ SUBSCRIBED AND SWORN to me before ~~~~t" . d,ay of August , 2006 ~A( Q ..h. f2.L~ ~~ 0 QQ NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-08 ~~~~\WIlI1lJA~ ~~~§.~.I.!..~~~ 6,:>~,' "l< S / \,\OTARy ....~ i i. _ .¡¡: ,\. PuBU.';.f ~~ÕF~ ~III1IIfIIØ r--------------~, Notice of Public HHrlng I STATE OF ALASKA Alaaka OUand Gas Conservation Commlsslo~ : Ae: Nicolai Creek Unit, Nicolai Creek Unit #10 Cook Inlet Basin, Alaska ' " I Aurora ~as, LLC by letter dated May 30, 2006 II and received by the Alaska Oil and Gas Conservation Commission ("Commission") on June I 1, 2006, has applied for an exception to the well I spacing requirements of 20 MC 25.055 (a)(2) for I the drilling, completion and production of the I Nicolai Creek Unit No. 10 gas delineation well. The subject well is proposed as a deviated hole with a I surface location 1629 feet from the West Line and I 1914 feet from the North Line of Section 20 T11N, I R12W, Seward Merdian (S.M.) and a bottom hole I location 304 feet from the East Line and 2135 feetl I from the North Line of Section 19, T11N, R12W, SM. , I I The Commission has tentatively scheduled a I I public hearing on this application for August 8, 2006 I I at 9:00 am at the offices of the Alaska Oil and Gas I I Conservation Commission at 333 West 7th Avenue, I I Suite 100, Anchorage, Alaska 99501. A person I I may request that the tentatively scheduled hearing I be held by filing a written request with the I Commission no later than 4:30 pm on July 14, I I 2006. I I If a request for a hearing is not timely filed, the I I Commission may consider the issuance of an order I without a hearing. To learn if the Commission wIß I hold the public hearing, please call 793·1221 after I July 21, 2006. In addition, a person may submit a written I protest or written comments regarding this applica- I tion and proposal to the Alaska Oil and Gas I Conservation Commission at 333 West 7th Avenue, I Suite 100, Anchorage, Alaska 99501. Protests and I comments must be received no later than 4:30 pm I on August 4, 2006 except that if the Commission decides to hold a public hearing, protests or com- I ments must be received no later than the conclu- I sion of the August 8, 2006 hearing. I If you are a person with a disability who may I need special accommodations in order to comment I or to attend the public hearing, please contact the I Commission's Special Assistant Jody Colombie at 793-1221. I John K. Norman I Chairman I LPUBLlSH~ 6/23, 2006 525712074 I ---------------~ STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS PUbliShereinal Copies: Department Fiscal, DepartmeeeceiVing NOTICE TO PUBLISHER AO.FRM 02-902 (Rev. 3/94) 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-02614039 F AOGCC 333 West ih Avenue. Suite 100 A n('hm~af' A K QQ"O 1 907-793-1221 AGENCY CONTACT DATE OF A.a. R a M .Indv r, . PHONE (907) 791 -1 221 DATES ADVERTISEMENT REQUIRED: TlInf' ')0 ')00£\ PCN T o Alaska Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99514 July 2, 2006 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 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 Public Notice e e Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 21 Jun 2006 09:20:20 -0800 To: legal@a1askajoumal.com Please publish 2 2006. AK Journal Ad Order Content- Type: application/msword Content-Encoding: base64 Content-Type: application/pdf Nicolai_Creek_Unit_10_Public Notice.pdf . - Content-Encodmg: base64 1 of 1 6/21/2006 9:21 AM Public Notice Nicolai Creek #10, Cook Inlet . e e lof2 6/21/2006 9:21 AM Public Notice Nicolai Creek #10, Cook Inlet e e 20f2 6/21/20069:21 AM Publuc Notice e e Subject: Publuc Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 21 2006 1 -0800 Jane, thank Colombie Content-Type: application/msword Peninsula Clarion Ad Order form.doc Content-Encoding: base64 I Content-Type: application/msword Nicolai Creek Unit 10 Public Notice.doc"1 d· b 64 - - - - - i Content-Enco mg: ase , 1 of 1 6/21/2006 10:03 AM ~1 · urora Gas, LLC I VI:: D www.aurorapower.com N {} 1 2006 Alaska Oil and Gas Conservation Commission 333 W 7th Avenue, Suite No. 100 Anchorage, Alaska 99501-3539 May 30, 2006 Gentlemen: RE: Spacing Exception Application Application for Permit to Drill NCUNo.10 Well ADL-63279 Nicolai Creek Unit Attn: Mr. Steve Davies Petroleum Geologist Reference is made to the recently submitted Application for Permit to Drill (APD) on behalf of Aurora Gas, LLC (AURORA), as Operator ofthe captioned proposed development well. This letter respectfully requests the APD be approved with certain limitations placed upon AURORA, as discussed below, and this spacing exception request be granted. The proposed Nicolai Creek Unit, No.1 0 Well is to be the second well drilled within Section 20, Township 11 North, Range 12 West, SM and is planned to be drilled directionally attempting to test gas in previously untested sands within the Tyonek Formation between the projected depths of2,887' MD/2,562' TVD to 3,831' MD/3,383' TVD. These intervals, namely the Carya 2-3, Carya 2-4 and Carya 2-5 sands, are either not present or water-wet in the Nicolai Creek Unit, No.3 and No.5 Wells. The distance between the primary Carya 2-4 interval in the proposed well, which is approximately 217' from the west line of the drillsite lease (ADL-63279) and Section 20. Additional causes for the need for an approved spacing exception are (a) the take point for the proposed well falls within 1,500' from a property line wherein land ownership on both sides of said line is not identical, and (b) the potential completion of a gas well within Section 20 which already has the NCU No.3 gas well situated in said section, albeit producing from a different Tyonek Formation sands (Carya 2-1 and Carya 2-2 sands). The SL of the proposed well is 1,629' FWL, 1,914' FNL of Section 20, situated on the same drilling pad as the NCU No.3 Well in the SE/4 NW/4 of said Section, as reflected on the Exhibit "A" attached hereto, and situated on AURORA Lease ADL- 63279. The BHL ofthe proposed well is 304' FEL, 2,135' FNL of Section 19, and situated on Aurora Lease AA-085789. The proposed well is situated within the confines ofthe Northern Participating Area ofthe captioned Unit. Consequently, the captioned well will require a spacing exception location pursuant to 20 AAC 25.540. It is anticipated that if the proposed well is commercial a reformation of the Northern Participating Area will be initiated to include a portion of AA-085789. 10333 Richmond Avenue, Suite 710· Houston, Texas 77042· (713) 977-5799· Fax (713) 977-1347 1400 West Benson Blvd., Suite 410. Anchorage, Alaska 99503· (907) 277-1003· Fax (907) 277-1006 . . Consequently, this letter respectfully requests the AOGCC give favorable consideration to approving AURORA's APD, but prohibiting AURORA's ability to produce said well until the completion of the spacing exception process. This proposal, if approved by the AOGCC, would allow AURORA to commence drilling operations and test the intervals of interest, as identified on Exhibit "A", but not produce hydrocarbons from this Carya 2-4 sand in the proposed well until the spacing exception process has concluded. AURORA's operational, drilling and testing program is briefly discussed below for your benefit. AURORA plans to drill the proposed NCU, No.1 0 Well to a sufficient depth to test three Upper Tyonek ("Carya") sands that appear to be potentially productive and is as follows. The surface location of the proposed well is on the same pad as and within 1 00' of an existing producing gas well, Nicolai Creek Unit, No.3 Well. The gravel area ofthe No.3 pad may be expanded from its present extent, but it will remain within the historic limits. Surface casing for the proposed well will be set at about 820', then the well will be kicked offto the west, reaching a measured TD of 4,000' with a TVD of about 3,539' at a point about 1,946' west and slightly south ofthe surface location (1,933' west and 221' south). The NCU No.3 well was drilled as a vertical hole to beyond the depths of this well. The primary objectives ofthe No. 10 Well are the Carya 2-5 sand at about 3,383' TVD, the Carya 2-4 sand at about 2,789' TVD, and the Carya 2-3 sand at 2,475' TVD (all of the Upper Tyonek Formation), with secondary objectives of several shallow Beluga sands between 850' TVD and 1,150' TVD, which are behind pipe, but not completed in the No.3 well. The No.3 well is completed in the Carya 2-1.1, 2-1.2, 2- 2.1,2-2.2, and 2-2.3 sands between 1,900' to 2,380', which have produced about 1.9 BCF to date, and a Beluga sand at 1,494-1,452'. The Carya 2-2.3 and part of the 2-2.2 sands in No.3 were cemented offto stop water production in 2003, so the PBTD ofthe well is now 2,319'. The remaining zones are commingled and producing 400-500 mcfpd. Thus, the objectives of the No. 10 well are not common to the No.3 well. Aurora is expecting as much as 140' of Carya pay and 130' of shallow Beluga pay in the objective sands in No. 10 well. The deeper Carya sand objectives are based on amplitude anomalies in the 3-D seismic shot over the area by Aurora in 2003, and the Beluga objectives are based on this seismic plus logs ofthe No.3 well. The deeper Carya sand objectives in proposed No. lOwell, the 2-5 and 2-4, are productive in the Nicolai Creek Unit, No. lB Well, about 1-112 miles south-southwest of this location (the sands have been tested productive there, but do not have a significant production history, due to mechanic problems in the well bore for which there are plans to remediate this summer by a workover there). The Carya 2-3 sands also appear to be productive in No. lB well, based on log data, and will be completed there in this summer's workover. ./ The plan for the drilling ofthe proposed well is to: a) drive 80' or so of 13-3/8" conductor, b) drill a 12-114" hole to 820' and set 9-5/8" surface casing, c) drill out with an 8-112" bit and kickoff directionally to the west, d) drill a directional well to 4,000' MD/3,539' MD, and e) run a full suite of open-hole logs, probably including array 2 . . induction, formation density, compensated neutron, dipole sonic, formation micro- imager, side-wall cores, and formation pressure tests (MDT). Assuming the well contains sufficient apparent pay, 5-1/2" casing will be set at TD, and the well will be perforated-most likely all Carya sands in one set up (2-5 to 2-3), isolated with packer / and bridge plug, and tested from bottom up to determine gas and water production rates. Any productive zones will likely be separated by packers and sliding sleeves for optimal ' production, whether commingled or selectively produced. If a commercial well is attained at this point, the Beluga will likely be left for the future. If, however, the commerciality of the Tyonek sands is questionable, the shallow Beluga sands will also be tested and may be set up as selective completions. If commercial gas production is determined, the existing No.3 production facility will be expanded, with a separator and production allocation meter added for the No. 10 well, and the existing compression and dehydration will be de-bottlenecked to provide capacity for this new well. It should be noted there are issues regarding potential injury to the correlative rights of offsetting owners. Attached hereto as Exhibit "B" is a plat of the drill site lease, (Tract l-ADL-63279), wherein the landowner is the Department of Natural Resources (DNR), along with surrounding lands/leases. As you can see, the Bureau of Land Management (BLM) is the offsetting landowner of all tracts contiguous to the north, west, south and east ofthe drillsite lease for the proposed well, such being Tracts 2 through 8, inclusive. All of Tracts 2 through 8, inclusive, comprise a portion of J AURORA's AA-085789 Lease with the mineral owner being the BLM. As reflected on Exhibit "B", only Tracts 2 through 5, inclusive, fall within the 3,000' radius from the projected take point for the proposed well at the Carya 2-4 level. As such, all landowners, including all overriding royalty owners, and operators within said 3,000' radius have been sent a copy of this letter by certified mail. Exhibit "c" identifies all landowners and overriding royalty owners. Exhibit "B" also reveals the SL & BHL of the proposed well for which the spacing exception is sought reflecting one other completed or drilling well on the drillsite lease, Tract l-ADL-63279, as well as the adjoining lands/leases. Please note Aurora's Wells lB, 2 & 9 in the southwesterly portion of Tract 7. Said three wells are in excess of 3,000' from the projected take point for the proposed well and are situated in another section. Exhibit "D" contains the Affidavit of Facts. Please incorporate this request with the APD submittal from Fairweather and give favorable consideration to AURORA's proposal. If you require additional information regarding this request, please contact Mr. Ed Jones, Vice President, Engineering at the number below or the undersigned. 3 . . Your prompt attention to this matter is sincerely appreciated. Very Truly Yours, /(~~ Randall D. Jones, CPL Manager, Land & Negotiations rjones@aurorapower.com Enclosures Cc: Mr. William Van Dyke, Director State of Alaska Department of Natural Resources 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Bureau of Land Management 6822 Abbott Loop Road Anchorage, Alaska 99517 Attn: Mr. Greg Noble, Branch Chief A. Clifford S. Pfoff E. Jones ncu 10 spacing exceptionrequest EXHIBIT "A" . . EXHIBIT "C" ROYALTY AND OVERRIDING ROYALTY OWNERS Aurora Gas, LLC 10333 Richmond Ave., #710 Houston, Texas 77042 Larry K. Hinkle 840 Norman Street Anchorage, Alaska 99504 Alice M. Langley, and Lee, husband 1446 East Spring Ridge Circle Winter Garden, FL Larlane J. Ciesla 5283 Fairgrounds Road Hamburg, New York 14075 John W. Hinkle PO Box 140692 Nashville, TN 37214 Jay B. Hinkle 94-1181 Ka Uka Blvd., #8 Waipahu, Hawaii 96797 Robert and Mitsue Masuda 7640 Bethany Circle Anchorage, Alaska 99507-3097 Jane Y. and Fred S. Hokama 5400 DeArmoun Road Anchorage, Alaska 99516 Keiso and Marcella Masuda 6500 East 12th Avenue Anchorage, Alaska 99504 Donald L. Stroble 1241 W. 27th Box 916 Anchorage, Alaska, 99503-3097 Ruth S. and Mobley A. Pharis 635 Border Lane Mojave Valley, Arizona 86440-9203 . . Alice Coulthard. Dodd Apt., # 10 1 Anchorage, Alaska 99501 Katie and Satoshi Kaku 4827 13th Avenue South Seattle, Washington 98108 Thomas A. Conway 2021 Campbell Place Anchorage, Alaska 99507 Rose Marie and Bernard Maresh P.O. Box 870228 Wasilla, Alaska 99687 John R. Roderick 1620 Hidden Lane Anchorage, Alaska 99501 Mary J. Horst (6) 155 Taylor Cut Off Road Sequim, Washington 98382 Lawrence J. Traxinger 70 Traxinger Trail Sequim, Washington 98382 Robert J. Traxinger 1537 E. Miles Ave. Hayden, Id. 83835 Paul V. Traxinger 50664 Dossow Street Kenai, Alaska 99611 Patricia R. Evina 5276 Atlas Tr. N. E. RR3 Kalkaska, MI 49646 David L. Boelens 3340 Whiteney Circle Anchorage, Alaska 99516 State of Alaska Department of Natural Resources 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 . . Bureau of Land Management 6822 Abbott Loop Road Anchorage, Alaska 99517 ncu 10 royalty and overriding royalty owners . . AFFIDAVIT OF FACTS Regarding Spacing Exception Application, Nicolai Creek Unit, No. 10 Well, Kenai Peninsula Borough, Cook Inlet, Alaska. The purpose of this AFFIDAVIT OF FACTS dated effective May 30, 2006 is to confirm to the Alaska Oil and Gas Conservation Commission, 333 W 7th Avenue, Suite No. 100, Anchorage, Alaska 99501-3533, Attn: Mr. Steve Davies, Petroleum Geologist, certain facts and stipulations regarding the ownership ofthe minerals, surface ownership and other pertinent facts regarding certain lands, leases, and leasehold of lands situated within the captioned borough and subject to a Spacing Exception Application recently submitted by Aurora Gas, LLC, as Operator of the proposed well cited in the Application, to the Alaska Oil and Gas Conservation Commission, hereinafter referred to as the "AOGCC", pursuant to 20 AAC 25.055. WHEREAS, my name is Randall D. Jones, CPL and I am employed as Manager, LAND & Negotiations at Aurora Gas, LLC, hereinafter referred to as "AURORA". I have over twenty-six years of experience in Land Management and my present responsibilities encompass all Land Management duties at AURORA allowing me to be knowledgeable about the facts contained within this AFFIDAVIT. NOW, THEREFORE, let it be known AURORA's Nicolai Creek Unit, No.3 Well is currently producing gas from the Upper Tyonek Formation, Carya 2-1.1, 2-1.2, 2- 2.1,2-2.2, and 2-2.3 sands between 1,900' to 2,380', and a Beluga sand at 1,494-1,452' at a surface location situated in the SE4NW 4 of Section 20, Township 11 North, Range 12 West, SM. The proposed Nicolai Creek Unit, No. 10 Well is also planned to test gas at three (3) Carya intervals shown on Exhibit "A". However, unfortunately said proposed Nicolai Creek Unit, No. 10 Well is also planned to have a SL situated in the identical SE4NW 4 of Section 20 within 100' of the Nicolai Creek Unit, No.3 Well and a BHL within the SE4NE4 of Section 19, but likely will be completed in a sand within Section 20. Both wells would be unit wells under AURORA'S ADL-63279 Lease situated within the confines of the Nicolai Creek Unit. Consequently, the proposed Nicolai Creek Unit, Well No. 10 will require a spacing exception location pursuant to 20 AAC 25.540. WHEREAS, reference is herein made to that certain Oil & Gas Lease dated effective October 1, 1958, as amended, covering certain lands; including, but not limited to, all of Sections 20, Wl/2, Township 11 North, Range 12 West, SM, hereinafter referred to as the "LEASE", from the Department of Interior, Bureau of Land Management (BLM), as Lessor, and J. Bailey Hinkle Corp., as Lessee. AURORA is the only owner (leaseholder) ofthe LEASE, AURORA's ADL-63279 Lease. The State of . . Alaska, Department of Natural Resources is the present owner (mineral rights owner) of the LEASE and the surface owner of the LEASE is all owned by the Cook Inlet Region, Inc. WHEREAS, it should be noted there are issues with possible injury to the correlative rights of an offsetting landowner, owners or operators offsetting the LEASE situated within 3,000' ofthe proposed BHL location for the proposed Nicolai Creek Unit, No. 10 Well, as defined by and pursuant to the requirements of20 AAC 25.540. As can be seen on Exhibit "C" attached hereto the offsetting landowner of the tract contiguous to and north ofthe drillsite lease, ADL-63279 Lease, for the proposed well is the BLM and the minerals under said tract are leased to AURORA being our AA-85789 Lease. The surface owner is the Mental Health Trust. Additionally, the offsetting landowner of the tract contiguous to and northwest ofthe drillsite lease, ADL-63279 Lease, for the proposed well is the BLM and the minerals under said tract are leased to AURORA being our AA-85789 Lease. The surface owner is the Cook Inlet Region, Inc. The offsetting landowner of the tract contiguous to and east ofthe drill site lease is also the BLM and the minerals of said tract are leased to AURORA under our AA-85789 Lease. The surface owner is the Cook Inlet Region, Inc. The offsetting landowner ofthe tract contiguous to and west ofthe drillsite lease is the BLM and these BLM minerals are leased to AURORA under AA-85789. The surface owner is the Cook Inlet Region, Inc. Additionally, the offsetting landowner of the two tracts contiguous to and southwest ofthe drillsite lease, ADL-63279 Lease, for the proposed well is the BLM and the minerals under said tract are leased to AURORA being our AA-85789 Lease. The surface owner is the State of Alaska, Department of Natural Resources. The offsetting landowner ofthe tract contiguous to and south of the drillsite lease is the BLM and these minerals are leased to AURORA under AA-85789. The surface owner is the MHT. It should be noted, however, all ofthe above offsetting tracts except for the 3 tracts to the south ofthe drillsite lease and contiguous to the drillsite lease are within 3,000' from the proposed BHL. Additionally, the offsetting landowner of the tract contiguous to and southeast ofthe drillsite lease, ADL-63279 Lease, for the proposed well is the BLM and the minerals under said tract are leased to AURORA being our AA-85789 Lease. The surface owner is the State of Alaska, Department of Natural Resources. It is anticipated that if the proposed well is commercial a reformation of the Northern Participating Area will be initiated to include a portion of AA-085789. FUTHERMORE, by certified copy return receipt requested of my letter dated May 30, 2006 to the AOGCC written notice to all owners, landowners, and operators of all properties within 3,000 feet ofthe proposed Nicolai Creek Unit, No. 10 Well and/or . . exception was effected on May 31, 2006. Proof of such mailing reflecting proper mailing to all of these parties with a list of addresses to which the notice was sent is reflected on Exhibit "B" attached hereto. Please be advised the reasons for the proposed Nicolai Creek Unit, No. 10 Well's current planned location are: a) to utilize a portion of an existing previously disturbed area for the SL drilling pad thereby minimizing environmental disturbance and existing roads without disturbing new, virgin areas which avoids the many wetlands in the area, and b) the drilling pad is located in a preferred optimal placement based on current geological interpretation such that it is in a near favorable position geologically (near the center of the structure, as seen on seismic lines and subsurface mapping) for a slightly deviated hole planned to penetrate the sands of interest. CONCLUDING, I now say these statements are true and correct to the best of my knowledge and analysis of AURORA'S land files and records, and through review of the land records of the websites of the Kenai Peninsula Borough and the State of Alaska, Department of Natural Resources. SIGNED thÜ301~date ofMA Y,2006. BY:K~J*eh- TITLE: Manager. LAND & Negotiations EMAIL: riones@aurorapower.com IN THE UNITED STATES OF AMERICA) ) ss. STATE OF TEXAS ) This certifies that on the ~/ .sf- day of MAY, 2006, before me a notary public in and for the State of Texas, duly commissioned and sworn, personally appeared Randall D. Jones, CPL , to me known and known to me to be the person described in, and who executed the foregoing assignment, who acknowledged to me that he executed the same freely and voluntarily for the uses and purposes therein mentioned. Witness my hand and official seal the day and year in this certificate first above written. !I'M:/'# e ALISSA S. VADBOLSKAIA .ARYP\BJC STATE Of TEXAS *. . COMMIIIION EXPIRES: JANUARY 19, 2009 #Jj~ J Mdkl>kéz... Notary Public My Commission Expires: ~ / ~ ZI?.t:75? ncu 10 aogcc affidavit of factsspacing application NICOLAI CREEK UNIT No. 10 MO,FT SURFACE 0.00 BASE SURFACE CASING 820.00 CARYA2-1 ANOMALY 2029.47 CARYA 2-3 ANOMALY 2887.43 CARYA2-4ANOMALY 3187.51 CARYA2-5ANOMALY 3831.15 PROPOSED TO 4000.00 TVO, FT 0.00 820.00 1919.00 2562.93 2788.14 3383.00 3539.00 . EXHIBIT" A " NORTHING (Y) EASTlNG (X) PERMIT T$P 2571841 243093 ADL-63279 11N 2571841 243093 AOL-63279 11N 2571792 242590 ADL-63279 11N 2571748 241984 ADL-63279 11N 2571727 241674 ADL-63279 11N 2571676 241216 AA-85789 11N 2571670 241151 AA-85789 11N . RANGESECTION FOOTAGE CALLS 12W 20 1629' FWL. 1914' FNL 12W 20 1629' FWL, 1914' FNL 12W 20 1135' FWL, 1983' FNL 12W 20 528' FWL, 2042' FNL 12W 20 217' FWL, 2067' FNL 12W 19 236' FEL, 2132' FNL 12W 19 304' FEL, 2135' FNL . . EXHIBIT" B " ROYALTY AND OVERRIDING ROYALTY OWNERS Aurora Gas, LLC 10333 Richmond Ave., #710 Houston, Texas 77042 Larry K. Hinkle 840 Norman Street Anchorage, Alaska 99504 Alice M. Langley, and Lee, husband 1446 East Spring Ridge Circle Winter Garden, FL Larlane J. Ciesla 5283 Fairgrounds Road Hamburg, New York 14075 John W. Hinkle PO Box 140692 Nashville, TN 37214 Jay B. Hinkle 94-1181 Ka Uka Blvd., #8 Waipahu, Hawaii 96797 Robert and Mitsue Masuda 7640 Bethany Circle Anchorage, Alaska 99507-3097 Jane Y. and Fred S. Hokama 5400 DeArmoun Road Anchorage, Alaska 99516 Keiso and Marcella Masuda 6500 East 12th Avenue Anchorage, Alaska 99504 Donald L. Stroble 1241 W. 27th Box 916 Anchorage, Alaska, 99503-3097 . . Ruth S. and Mobley A. Pharis 635 Border Lane Mojave Valley, Arizona 86440-9203 Alice Coulthard. Dodd Apt., #101 Anchorage, Alaska 99501 Katie and Satoshi Kaku 4827 13th Avenue South Seattle, Washington 98108 Thomas A. Conway 2021 Campbell Place Anchorage, Alaska 99507 Rose Marie and Bernard Maresh P.O. Box 870228 Wasilla, Alaska 99687 John R. Roderick 1620 Hidden Lane Anchorage, Alaska 99501 Mary J. Horst (6) 155 Taylor Cut Off Road Sequim, Washington 98382 Lawrence J. Traxinger 70 Traxinger Trail Sequim, Washington 98382 Robert J. Traxinger 1537 E. Miles Ave. Hayden, Id. 83835 Paul V. Traxinger 50664 Dossow Street Kenai, Alaska 99611 Patricia R. Evina 5276 Atlas Tr. N. E. RR3 Kalkaska, MI 49646 . . David L. Boelens 3340 Whiteney Circle Anchorage, Alaska 99516 State of Alaska Department of Natural Resources 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Bureau of Land Management 6822 Abbott Loop Road Anchorage, Alaska 99517 SURFACE OWNERS State of Alaska Department of Natural Resources 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501 Cook Inlet Region, Inc. 2525 "C" Street, Suite 500 Anchorage, Alaska 99509-3330 Alaska Mental Health Trust Authority c/o Alaska Mental Health Trust Land Office 718 L Avenue, Suite 202 Anchorage, Alaska 99509-3330 FW: NCD 10 Spacing Exception Nearing Vacated; Request for Addi... . . Alissa S. Lopez Administrative Assistant Aurora Power Resources, Inc. ph: 713-977-5799 fax:713-977-1347 RECEIVED AUG 0 8 2006 -----Original Message----~ From: Ed Jones [mailto:jejones@aurorapower.com] Sent: Tuesday, August OB, 2006 B:11 AM To: 'Alissa Lopez' Cc: 'Andy Clifford' Subject: FW: NCU 10 Spacing Exception Nearing Vacated; Request for Additional Information Alaska Oil & Gas Cons. Commission Anchorage Alissa. Please see if you can find these receipts, copy, and send to Steve. Thanks, Ed Ed Jones Vice President Engineering & Operations Aurora Gas, LLC 713-977-5799 (Houston) 907-277-1003 (Anchorage) From: Stephen Davies [mailto:steve_davies@admin.state.ak.us] Sent: Monday, August 07,20067:36 PM To: jejones@aurorapower.com; acclifford@aurorapower.com Subject: NCU 10 Spacing Exception Nearing Vacated; Request for Additional Information Ed and Andy, The Commission vacated the public hearing concerning the spacing exception for the Nicolai Creek Unit No. 10 that was scheduled for Tuesday, August 8, 2006. In the Affidavit of Facts accompanying the application for spacing exception, Randy Jones states that Aurora sent notice by certified mail to all potentially affected owners, landowners and operators within 3,000 feet ofthe portion of the well that is anticipated to be productive. Could you please provide the Commission with copies of the postal return receipts for each affected party? 10f2 8/8/20067:49 AM FW: NCD 10 Spacing Exception Nearing Vacated; Request for Addi... . . Thanks for your help, Steve Davies AOGCC 907-793-1224 Content-Type: application/pdfi NCU10yostal receipts.pdfi b: - .. Content-Encoding: ase64 20f2 8/8/2006 7:49 AM I . . · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: John R. Roderick 1620 Hidden Lane Anchorage, AK 99501 2. Article Number (Transfer from service label) PS Form 3811, February 2004 A. Signature '1 i . D Agent )( j /1 <.-I{ ,;--dj;.,_l1.A~¡' 0 Addressee. B. Received by ( Printed Name) C Dat. of DelivAery D. Is delivery address different from item 1? If VES. enter delivery address below: 3. Service Type &J Certified Mail D Registered o Insured Mail D Express Mail D Return Receipt for Merchandise D C.O.D. 4. Restricted Delivery? (Extra Fee) D Ves 7004 2510 0004 4622 4900 c::. 0 . v.¡ <n 0 'Ë u::J § W = c..;¡ = c:ñ (I) > ç-...J 0) c::. ~ 00 0 .... - c..;¡ 0 W ~ <n ..r:: ~ () ~ c::. (.!: c.!J <t W :::::> oð <C " ë5 ~ ~ CI) (0 < Domestic Return Receipt 102595-02-M-1540 SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Patricia R. Evina 5276 Atlas Tr. N.E. RR3 Kalkaska, MI 49646 2 Article Number rironsfer from service label) . . D Agent Q] Addressee oVes DNo 4. Restricted Delivery? (Extra Fee) D Ves 7004 2510 0004 4622 4979 10259S-02-M'1S40 PS Form 3811, February 2004 Domestic Return Receipt SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY · Complete items 1, 2, and 3. Also complete A. item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Paul V. Traxinger 50664 Dossow Street Kenai, AK 99611 2_ Article Number (T'ransfer from service labeQ PS Form 3811, February 2004 3. Service Type ¡Q Certified Mail o Registered o Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DVes 7004 2510 0004 4622 4924 Domestic Return Receipt 102S95-02-M-1540 SENDER: COMPLETE THIS SECTION . COMPLETE THIS SECTION ON DELIVERY . · Complete Items 1,2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mail piece, or on the front if space permits. 1. Article Addressed to: A Signature ,¿) -' '"7" i X~{?"~: /-: ate of Delivery _~',£ ;-j 7/~I'/Àl{~' -'. -S-,j' D, Is delivery address different from Item'? 0 Yes If YES. enter delivery address below: "f No Robert J. Traxinger 1537 E. Miles Avenue Hayden, ID 83835 3. Service Type Qf Certified Mail o Registered o Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D, 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number (Transfer from service label) 7004 2510 0004 4622 4962 PS Form 3811, February 2004 Domestic Return Receipt 102595-Q2,M-lf",,, · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: D. Is delivery address different from item 1? If YES, enter delivery address below: Larlane 1. Ciesla 5283 Fairgrounds Road Hamburg, NY 14075 3. Seplice Type ¡¡' Certified Mail 0 Express Mail o Registered 0 Return Receipt for Merchandise o Insured Mail 0 C.O.D. 4. Restricted Delivery? (Extra Fee) D Yes 2. Article Number (Transfer from service label) PS Form 3811. February 2004 7004 2510 0004 4622 4818 Domestic Return Receipt 10259S-Q2-M-I540 · ENDER: COMPLETE THIS SECTION · Complete items 1, 2, ana 3. Also ,complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Mary J. Horst (6) 155 Taylor Cut Off Road Sequim, W A 98382 3. Service Type J2( Certified Mail o Registered o Insured Mail o Express Mail o Return Receipt for Merchandise DC.O.D. 4. Restricted Delivery? (Extra Fee) DYes , Article Number (Tronsfer from service label) '5 Form 3811. February 2004 7004 2510 0004 4622 ~894 Domestic Return Receipt 102595·02-M·1540 RECEIVED AUG 0 8 2006 Alaska Oil & Gas Cons. Commission Anchorage · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Rose Marie and Bernard Maresh P.O. Box 870228 Wasilla, AK 99687 2. Article Number (Transfer from service label) 3. Service Type r» Certified Mail D Registered D Insured Mail D Express Mail D Return Receipt for ~Aerchandise DC.C.D. 4. Restricted Delivery? (Extra Fee) DYes 7nÐ4,2$~.0..OOß;M;~~22'; 4887 .' ._--._~;, ........:.... PS Form 3811 , February 2004 Domestic Return Receipt 102595·02-M-1540 .. . . · Complete items 1. 2. and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mail piece. or on the front if space permits. ---- 1. Article Addressed to: Donald L. Strobe 1241 W. 2ih Box 916 Anchorage, AK 99503-3097 2. Article Number (Transfer from service label) PS Form 3811 , February 2004 COMPLETE THIS SECTION ON DELIVERY A. Signature x 3. Service Type ŒfCertified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.C.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4832 102595·02·M·1540 Domestic Return Receipt SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Keiso and Marcella Masuda 6500 East Ith Avenue Anchorage, AK 99504 COMPLETE THIS SECTION ON DELIVERY A. S{" nature r- , ;;/. " D Agent X nJ (:,)i \..~ ¡ I (' ,,< --1_- D Addressee ~. 7~'V~d,_bY~P7n~:~ame),~. c¿ar)o!t;'(:ery D. Is delivery address different from rtem 1? D Yes If YES. enter delivery address below: D No 3. Service Type g¡ Certified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number (Transfer from service label) PS Form 3811, February 2004 7004 2510 0004 4622 4788 102595-02-M-1540 Domestic Return Receipt . RECEIVED AUG 0 8 2006 ,Alaska Oil & Gas Cons. COOlffiissiol1 Anchorage SENDER: COMPLETE THIS SECTION ;OMPLETE THIS SECTION ON DELIVERY 1. Article Addressed to: · Complete items 1, 2. and 3. Also complete item 4 if Restricted Delivery is desired. X · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the maiipiece, or on the front if space permits. Jane and Fred Hokama 5400 DeArmoun Road Anchorage, AK 99516 3. Service Type ~ Certified Mall D Registered D Insured Mall D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number (fransfer from service label) PS Form 3811. February 2004 7004 2510 0004 4622 4771 Domestic Return Receipt 102595-02·M-1540 SENDER: COMPLETE THIS SECTION . . . . · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Jay B. Hinkle 94-1181 Ka Uka Blvd., #8 Waipahu, Hawaii 96797 3. Service Type ¡zf Certified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number (frans!ar lrom service labei) PS Form 3811, February 2004 7004 2510 0004 4622 4757 Domestic Return Receipt 102595·02·M·1540 SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY A. Signature . . D Agent D Addressee Date of Delivery DYes D No 1. Article Addressed to: John W. P.O. Box I Nashville, D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 2. Article Number (fransfer from service label) PS Form 3811, February 2004 7004 2510 0004 4622 4825 Domestic Return Receipt 1 02595·02·M· 1540 . RECEIVED AUG 0 8 2006 Alaska Oil & Gas Cons.CPmmis$ion Anchorage SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY . · Complete Items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Alice and Lee Langley 1446 E. Spring Ridge Circle Winter Garden, FL 34787-2163 2. Article Number (Transler from service label) PS Form 3811, February 2004 D Agent D Addressee D. Is delivery address different from item 1? If YES. enter delivery address below: 3. Seryice Type I2ÍCertified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.O.D. 4. Restricted Delivery? (Extra Fee) Dyes 7004 2510 0004 4622 4801 Domestic Return Receipt 1 02595-02·M· 1540 SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mail piece, or on the front if space permits. 1. Article Addressed to: Larry K. Hinkle 840 Norman Street Anchorage, AK 99504 2 Article Number (Transfer from service label) . . . . . A. Sigoáture ,. !,'.../.. DAgent X ¡ , / { . :/ ._1· v (. [J.Addressee t ~e;e.. ~ :Y (Printed ~~:e)i, _~ C!J!/;O~liVery O. Is delivery/address different from item 1? DYes If YES, ~ter delivery address below: D No 3. Seryice Type JA( Certified Mail o Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4795 102595·02·M·I540 PS Form 3811, February 2004 Domestic Return Receipt SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: David L. Boelens 3340 Whiteney Circle Anchorage, AK 99516 2. Article Number (Transfer from service label) PS Form 3811, February 2004 COMPLETE THIS SECTION ON DELIVERY A" ·Signature X"-- . 'J.. Î . . D Agent '---'·C'--- IJÀ~-'<.· \... --:" D Addressee B. Received by (Printed Name) C. Date of Delivery ~I i..., ¡ )) n '::.:.( 0; \ ( . ) (" -,(. D. Is delivery address different from item 1? If YES. enter delivery address below: 3. Service Type 8' Certified Mail D Regisfered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.O.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4917 Domestic Return Receipt 102595-02·M·1540 RECEIVED AUG 0 8 2006 Alaska Oil & Gas Cans. Commission Ancl'm.¡:ans SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY . · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mail piece, or on the front if space permits. 1. Article Addressed to: Katie and Satoshi Kaku 4827 13th Avenue South Seattle, W A 98108 2 Article Number ,Transfer from service label) A. Signature D Agent D Addressee C. Date 01 Delivery x D. Is delivery address different from item 1? DYes If YES. enter delivery address below: D No 3. Service Type ~rtified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4863 102595-02·M·1540 PS Form 3811, February 2004 Domestic Return Receipt SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete Item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mail piece, or on the front if space permits. t. Article Addressed to: State of Alaska Dept. of Natural Resources 550 West ih Avenue, Suite 800 Anchorage, AK 99501 2 Article Number (Transfer from service label) PS Form 3811. February 2004 COMPLETE THIS SECTION ON DELIVERY -Ii ( ß Agent D Addressee Printed Name) .. Date, qtÐelivery 6-/ D~ delivery address different from item 1? DYes If YES. enter delivery address below: D No 3. Service Type I2!'Certified Mail D Registered o Insured Mail D Express Mail D Return Receipt for Merchandise DC.O.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4931 Domestic Return Receipt 102595'()2·M-1540 SENDER: COMPLETE THIS SECTION · Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Bureau of Land Management ft,æ ~Abbott Loop Road Anchorage, AK 99517 2. Article Number (Transfer from service label) PS Form 3811, February 2004 COMPLETE THIS SECTION ON DELIVERY A. SignaturE¡;, . / ..- .. X 'Ii ..'. ..-- ~Anent bA~dressee ..-".. /3,: R,9\li~ed by r. Printed, Name) C. Date of Delivery -, '1; (, ~,..,\.. ~ _ S '- . ( . D. Is delivery address different from item 1? D. Yes 11 YES, enter delivery address below: 'ý'I No 3. Service Type 3 Certified Mail D Registered D Insured Mail D Express Mail D Return Receipt for Merchandise DC.a.D. 4. Restricted Delivery? (Extra Fee) DYes 7004 2510 0004 4622 4948 Domestic Return Receipt 1 02595-02·M· 1540 RECEIVED .AUG 0 8 2006 Alaska Oíl & Gas Cons. Commission Anchafage ..,. ,"'""',W',:,,",',,. "1T-~~... :~''''f-'II.~''---' ~ 0004 4856 f~1 ,b\r ¡~.~t:~ ~,...,*."... ~~f~'~~'¡' .... , . ,.1 ¡. Aurora Gas, LLC 10333 Richmond, Suite 710 Houston, Texas 77042 -;0 ~ m CJ) (') Q m· 00 _ ~ < 5 m 0, 0 :Þ m (I) ="" Q) !:? :t>12O ::J Ci') n Q) ~In ~ ("') f\) Q d :::! t\:> !" Ö ~ ;3 0' Gi) S' ;:¡ ~ t w " ~. . -.' l~"V-'~~"""", ., . . ;..._--- """""',. '''':'Ì!!~-·'X... .~ m I 11111 \ -------..----.. Aurora Gas, LLC 10333 Richmond, Suite 710 Houston, Texas 77042 Alice Coulthard Dodd Apt #101 Anchorage, AK 995G . ..~', .""":,-.- I ¡ I I / í ..~..,.;;:~"~ I ìÎ d/ii¡i I /il/ili 'Ii ,¡¡Ii I . .<Co"..--.- RECEIVED AUG 0 8 Z006 Alaska Oil & Gas Cons. Commission Anchorage .._."""...............".,.~...-. -'. .'...~""-"""'" .,..... ,...m·1 ~ ' , , "111I11 111'11 , £~¿ 0~~ ç~~ \ 7004 2510 0004 4622 4870 RECEIVED AUG 0 8 2006 Alaska Oil & Gas Cons. COO1mission Anchorage ,". ~ ....-..-- AUTOI'a Gas, LLC 10333 Richmond, Suite 710 Houston, Texas 77042 / / / ...... ... ..11110 ~ !vOl'D (¡!v~~~ 4ùg~V~F?.IJ~ ~ ìo 'f:.~:i~"1tSl.~ ~OL ....'0 'J~ . ~o r ~ ~ / , .. ~ USPS - Track & Confirm . . Page 1 of 1 .~ UNITED STATES I!ir pos1ìjI. SERVICE HO(l1~ I H~Jp I $ìgJ1.Jn Track & CQnfirm FAQs Track & Confirnl Search Results Label/Receipt Number: 70042510000446224955 Status: Delivered T~;~fCk &. C{¡n~;:nn Your item was delivered at 3:56 pm on June OS, 2006 in SEQUIM, WA 98382. A proof of delivery record may be available through your local Post Office for a fee. Enter Label/Receipt Number. GI} > Additional information for this item is stored in files offline. Rt~s(urt: Offhue_UH(aifs ,;. ~ '! ' Helllfn wUSPS.COIII Jhwl(' S.itp RECEIVED U1 U1 IT' ::r ::r CJ CJ CJ CJ M U1 ru C,81- $,), <f,{/ .$ /. t b- AUG 0 820GB Alaska Oil & Gas Cons. Commission Anchorage ru ru ..n ::r :r /;;¿ ::r CI CJ ['- Lawrence J. Trax!nger 70 Traxinger TraIl Sequim. WA 98382 http://trkcnfrml.smi.usps.com/PTSlntemetWeb/lnterLabelInquiry.do 8/8/2006 USPS - Track & Confirm . . Page 1 of 1 Ê6......·.UMTE.D.,S.Tí. ì.n;. 'E. S- POSmL SERVICE, HQ.rDE!. I Hf)lp I $ign1n Track & Confirm FAQs Track &Collfirm Search Results Label/Receipt Number: 70042510000446224764 Status: Delivered Your item was delivered at 3:28 pm on June 12, 2006 in ANCHORAGE, AK 99507. A proof of delivery record may be available through your local Post Office for a fee. Enter Label/Receipt Number. Go.:- Additional information for this item is stored in files offline. fh:::;/{)fé Off/hili Ðcr,¡ifs ~, fh'luu: fa lfSPS.(;tnn NÚlth' RECEIVED .:T .JJ f'- .:T AUG 0 8 2006 ru ru .JJ .:T Q~'l- .$d(. y ¿; $/SS Alaska Oil & Gas Cons. Commission Anchorage .:T c::J c::J c::J c::J ,...:¡ U1 ru 5/d .:T c::J c::J f'- Robert and Mitsue Masuda 7640 Bethany Circle Anchorage, AK 99507-3097 http://trkcnfrm1.smi.usps.com/PTSlnternetWeb/lnterLabelInquiry .do 8/8/2006