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Home My WebLink AboutCO 580 e e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Co 5<00 Order File Identifier o Rescan Needed 1111111111111111111 OVERSIZED (Scannable) ~ps: t o Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) o Logs of various kinds: o Other:: /5/ tlJ¡p 1111111111111111111 /s/ mJD + = TOTAL PAGES t?CO (Count does not include cover sheet) /5/ 111111111111111111I Organizing (done) o Two-sided 1111111111111111111 R]ßCAN 'VI Color Items: D Greyscale Items: DIGITAL DATA o Diskettes, No. D Other, Norrype: D Poor Quality Originals: D Other: NOTES: Date ~07 Da,e;).! 10/07 BY: ~ Project Proofing BY: ~ Scanning Preparation BY: Date: Production Scanning Stage 1 Page Count from Scanned File: .lai!-- (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: V YES BY: ~ Date: c9-J CoI07 Stage 1 If NO in stage 1, page(s) discrepancies were found: YES BY: Maria Date: Scanning is complete at this point unless rescanning is required. NO ReScanned 1111111111111111111 BY: Maria Date: Comments about this file: Quality Checked /51 rnp NO 151 11111111111111" 11/ 151 111111111I11111111I 10/6/2005 Orders File Cover Page. doc . . INDEX CONSERVATION ORDER NO. 580 Ninilchik State #3 December 6, 2006 Marathon's application for an spacing exception Ninilchik #3 e-mail from AOGCC to Marathon re: application 1) 2) 3) 4) 5) 6) December 7, 2006 December 8, 2006 Notice of Hearing, affidavit publication, bulk e- mail and mailing Marathon submittal of certified mail receipts Marathon submittal of additional information E-mail vacating the Public Hearing December 8, 2006 December 15, 2006 January 9, 2007 CONSERVATION ORDER NO. 580 . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Marathon Oil Company for an order granting an exception to the spacing requirements of 20 AAC 25.055(a)(4) to provide for the drilling, completion, testing and regular production of the Ninilchik State No.3 well within 3000 feet of a well capable of producing from the same interval. ) ) ) ) ) ) ) ) Conservation Order No. 580 Ninilchik State No.3 Delineation Gas Well January 29,2007 ORDER CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. DATED AND EFFECTIVE at Anchorage, Alaska and this 29th day of January, 2007. BY DIRECTION OF THE COMMISSION · e STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Marathon Oil Company for an order granting an exception to the spacing requirements of 20 AAC 25.055(a)(4) to provide for the drilling, completion, testing and regular production of the Ninilchik State No.3 well within 3000 feet of a well capable of producing from the same interval. IT APPEARING THAT: ) ) ) ) ) ) ) ) Conservation Order No. 580 Ninilchik State No.3 Delineation Gas Well January 29,2007 1. Marathon Oil Company ("MOC"), by letter dated December 6, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on December 6, 2006 has requested an order allowing an exception to the spacing requirements of 20 AAC 25.055(a)(4) to allow drilling, completion, testing and regular production of the Ninilchik State No.3 gas delineation well within 3000 feet of a the Ninilchik State No.1 well which is capable of producing from the same interval. 2. The Commission published notice of opportunity for public hearing in the Anchorage Daily News on December 12, 2006, pursuant to 20 AAC 25.540; 3. Additional information was requested from MOC on December 7,2006 and received on December 15,2006. 4. No protests to the application or requests for hearing were received. 5. The public hearing was vacated on January 9,2007. FINDINGS: 1. MOC is the operator of the Ninilchik No.3 well. 2. Ninilchik State No.3 is proposed as a deviated gas delineation well with a surface location of 1116 feet from the west line (FWL) and 850 feet from the north line (FNL) of Section 34, TIN, R13W, Seward Meridian ("S.M."), and a projected bottom hole location for this well is 1693 feet FWL, 997 feet FNL, Section 28, TIN, R13W, S.M. 3. The Ninilchik State No.3 well will target gas reservoirs in the Tyonek Formation which can be discontinuous. 4. The portion of State of Alaska oil and gas lease ADL 389180 that the Ninilchik State No.3 will penetrate is within the Grassim OskolkoffParticipating Area of the Ninilchik Unit. 5. MOC sent notice ofthe application for exception to the well spacing requirements of 20 AAC 25.055 by certified mail to all owners, landowners, and operators of all properties within 3000 feet of the anticipated productive interval of the proposed Ninilchik State No.3 well. e e CONCLUSIONS: 1. An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling, completion, testing and regular production of the Ninilchik State No.3 gas delineation well in order to evaluate gas reservoirs in the Tyonek Formation in the Grassim OskolkoffParticipating Area. 2. The properties affected by this spacing exception are within the boundaries of the Grassim Oskolkoff Participating Area of the Ninilckik Unit. 3. Granting a spacing exception to allow drilling, completion, testing and regular production of the Ninilchik State No.3 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: MOC's application for exception to the well spacing provision of 20 AAC 25.055(a)(4) for the purpose of drilling, completion, testing and regular production of the Ninilchik State No. 3 well is approved. Because the properties affected by this spacing exception are wholly contained within the Grassim OskolkoffParticipating Area of the Ninilchik Unit, MOC may ceed with regular production as long as there is compliance with the terms of the PA agreement and pli able Alaska law. ;:':...,5' DONE at Anchorage, Alaska and dated ~:~9.IL ~~ ~. ~~:Jit , 1 I~V.o If ~<>Y ::~.. ':' \ ~ !,!~ >?"'). ~ if ':",~.v \ \ ~ : ,! / j ^ "~... \, ! /,,, ~ ·'1" ~ \ t l::;~~':'~" -( , ~ ~ /' ^~ ,":<',. AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the re uest is deemed denied Le., lOth da after the a lication for rehearin was filed . Conservation Order No. 580 Page 2 of2 Effective January 29, 2007 CO 580 NinilchiIk State #3 Cook Inlet . . Subject: CO 580 Ninilchilk State #3 Cook Inlet From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Mon, 29 Jan 2007 13:48:55 -0900 To: undisclosed-recipients:; BCC: Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjrl <trmjrl@aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <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>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>,jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark~hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@alaskadc.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <krlstin_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>, jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, n1617@conocophillips.com, Tim Lawlor <Tim _ Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda _ Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Karl Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Gary Rogers <gary_rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <krlyons@suddenlink.net>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Iris Matthews <lris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, Aleutians East Borough <admin@aleutianseast.org>, Marquerite kremer 10f2 1/29/2007 1 :49 PM CO 580 Ninilchilk State #3 Cook Inlet . . <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoi1.com>, Cammy Taylor <Camille _ Taylor@law.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoi1.com>, Deanna Gamble <dgamble@kakivik.com>, James B Regg <jim _regg@admin.state.ak.us>, Catherine P Foerster <cathy _foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobi1.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, Anna RafI <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@ml.com>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, Mike Stockinger <Mike.Stockinger@anadarko.com>, John Spain <jps@stateside.com>, Cody Rice <Cody_Rice@legis.state.ak.us>, John Garing <garingJD@bp.com>, Harry Engel <engelhr@bp.com>, Jim Wine garner <jimwinegarner@brooksrangepetro.com>, Matt Rader <matt _ rader@dnr.state.ak.us>, David Risser <dmrisser@marathonoi1.com>, Cynthia B Mciver <bren _ mciver@admin.state.ak.us> Jody Colombie <iody colombiecmadmin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf co 580.pdf Content-Encoding: base64 2of2 1/29/2007 1 :49 PM . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,lD 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 Oillnfonnation 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 #6 Ninilchik State #3 Public Hearing . . I have reviewed the Spacing Exception request from Marathon Oil Co. for the Ninilchik State #3 well. The Public Notice was published on December 8, 2006 and the public Hearing is scheduled for Thursday, January 11, 2007, at 9:00am. We have received no comments from the public on this request. AOGCC Regulations require Marathon to apply for a location exception for the Ninilchik State #3 well as the targeted productive interval of the well is located within 3,000' (ft) of a well capable of producing from the same interval (being the Grassim Oskolkoff No. 3 well). This spacing exception is necessary because the drainage areas of the other wells drilled in the vicinity are often limited due to the discontinuous nature of the Tyonek reservoirs. It is anticipated that wells productive in the Tyonek intervals may drain less than 640 acres. I agree with this assessment at this time. In the future, as more wells are drilled in the field and pressure data is compiled, a better understanding of the connectivity of the Tyonek sands may be made, and pool rules established. As we have received no Public comments concerning this spacing exception, and I know of no mitigating circumstances, I recommend we vacate the scheduled Public Hearing. Respectfully, Art Saltmarsh Art Saltmarsh <art saltmarsh(cl)admin.state.ak.us> Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 1 of 1 1/9/2007 10:56 AM Re: Ninilchik State #3 Public Hearing . . concur Art Saltmarsh wrote: I have reviewed the Spacing Exception request from Marathon Oil Co. for the Ninilchik State #3 well. The Public Notice was published on December 8, 2006 and the public Hearing is scheduled for Thursday, January 11, 2007, at 9:00am. We have received no comments from the public on this request. AOGCC Regulations require Marathon to apply for a location exception for the Ninilchik State #3 well as the targeted productive interval of the well is located within 3,000' (ft) of a well capable of producing from the same interval (being the Grassim Oskolkoff No. 3 well). This spacing exception is necessary because the drainage areas of the other wells drilled in the vicinity are often limited due to the discontinuous nature of the Tyonek reservoirs. It is anticipated that wells productive in the Tyonek intervals may drain less than 640 acres. I agree with this assessment at this time. In the future, as more wells are drilled in the field and pressure data is compiled, a better understanding of the connectivity of the Tyonek sands may be made, and pool rules established. As we have received no Public comments concerning this spacing exception, and I know of no mitigating circumstances, I recommend we vacate the scheduled Public Hearing. Respectfully, Art Saltmarsh Daniel Seamount <dan seamount(a;admín.state.ak.us> Commissioner 907-793-1238 Alaska Oil & Gas Conservation Commission Department of Administration 1 of 1 1/912007 11 :32 AM Re: Ninilchik State #3 Public Hearing . . Thanks Art. I concur. John Art Saltmarsh wrote: Yes John, The Ninilchik State #3 and the Grassim Oskolkoff #3 both lie within the Ninilchik Unit and the Grassim Oskolkoff Participating Area. John K. Norman <John Norman(a¿admin.state.us> Chainnan Alaska Oil & Gas Conservation Commission 1 of 1 1/9/2007 11 :59 AM Re: Ninilchik State #3 Public Hearing . . I agree. Art Saltmarsh wrote: I have reviewed the Spacing Exception request from Marathon Oil Co. for the Ninilchik State #3 well. The Public Notice was published on December 8, 2006 and the public Hearing is scheduled for Thursday, January 11, 2007, at 9:00am. We have received no comments from the public on this request. AOGCC Regulations require Marathon to apply for a location exception for the Ninilchik State #3 well as the targeted productive interval of the well is located within 3,000' (ft) of a well capable of producing from the same interval (being the Grassim Oskolkoff No. 3 well). This spacing exception is necessary because the drainage areas of the other wells drilled in the vicinity are often limited due to the discontinuous nature of the Tyonek reservoirs. It is anticipated that wells productive in the Tyonek intervals may drain less than 640 acres. I agree with this assessment at this time. In the future, as more wells are drilled in the field and pressure data is compiled, a better understanding of the connectivity of the Tyonek sands may be made, and pool rules established. As we have received no Public comments concerning this spacing exception, and I know of no mitigating circumstances, I recommend we vacate the scheduled Public Hearing. Respectfully, Art Saltmarsh Cathy Foerster Commissioner Alaska Oil and Gas Conservation Commission 1 of 1 1/9/2007 10:59 AM #5 . . Marathon Oil Company Alaska Asset Team Northern Business Unit P.O. Box 196168 Anchorage, AK 99519-6188 Telephone 907-565-3044 Fax 907-565-3076 December 15, 2006 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 RECEIVED RE: AOGCC Request for Additional Information Location Exception Application Marathon Oil Company Nini1chik State No.3 well Nini1chik Unit, Grassim Oskolkoff P.A. Kenai Peninsula Borough, Alaska DEC 1 5 2006 Alaska Oil & Gas Cons. Commission Anchorage Dear Mr. Saltmarsh: Pursuant to your recent request, addressed to us by your telephone call of December 14,2006, Marathon Oil Company (Marathon) respectfully submits the following additional information as a clarification of our previous Location Exception Application dated December 6, 2006, and covering the Nini1chik State No.3 well (NS No.3 well). AOGCC Regulations require that Marathon apply for a location exception for the NS No.3 well because the targeted productive interval of the well is located within 3000 feet of a well capable of producing from the same interval (being the Grassim OskolkoffNo. 3 well). This spacing exception is necessary because the drainage areas of the other wells drilled in the vicinity are often limited due to the discontinuous nature of Tyonek reservoirs. It is therefore anticipated that wells productive in Tyonek intervals may drain less than 640 acres. The above information is submitted as a supplement and clarification of our previous Location Exception Application dated December 6, 2006, covering the NS No.3 well. In all other respects, Marathon's previous Application remains unchanged. Should you have any questions related to land or ownership issues, please contact Keith Wiles at 907-565-3044, or for questions regarding the technical aspects of this application, please contact Scott Szalkowski at 713-296-3390. Sincerely, ~ (), /lì¡~ Dave Martens Alaska Asset Team Subsurface Manager #4 . . Alaska Asset Team Northern Business Unit Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6188 Telephone 907-565-3044 FAX 907-565-3076 December 8, 2006 RECEIVED DEC 1 2 2006 Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 '.'_ ,'t -"" Alaska Oil & Gas Com;, CommtsSIOII Anchorage RE: Location Exception Application Marathon Oil Company Grassim OskolkoffP.A. Ninilchik State No.3 Well Ninilchik Unit Kenai Peninsula Borough, Alaska Dear Mr. Saltmarsh: Enclosed is a copy of the Certified Mail Receipts for the above referenced notification. Sincerely, Enclosures cc: Keith Wiles . . Exhibit "A" Ninilchik Unit Ninilchik State No.3 Location Notification List Name Line 2 City State State of Alaska Department of Natural Resources Attn: William Van Dyke Anchorage AK Division of Oil & Gas Chevron USA and Union Oil Attn: Kevin Tabler Anchorage AK Company of California Marathon Oil Company Attn: Keith Wiles Anchorage AK . . Alaska Asset Team Northern Business Unit (. M.') Marathon MARATHON Oil Company December 6, 2006 P.O. Box 196168 Anchorage, AK 99519-6188 Telephone 907-565-3044 Fax 907-565-3076 Mr. Robert Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 RE: Location Exception Application Marathon Oil Company Ninilchik Unit, Grassim OskolkoffP.A., Ninilchik State No.3 Well Kenai Peninsula Borough, Alaska Dear Mr. Crandall: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: 1116' FWL & 850' FNL, Section 34, TIN, R13W, S.M. Target: Estimated Top of Tyonek Production Estimate @ 3699' TVD, 7222' MD 2419' FWL & 1819' FNL, Section 28, TIN, R13W, S.M. Bottom Hole: Estimated @ 8069' TVD, 12,057' MD 1693' FWL & 997' FNL, Section 28, TIN, R13W, S.M. The Ninilchik State No.3· ", - - -<- - - -,- ----,-~. m_____ _1- -------,--- 'T'1.._ ____11 ,- +- 1..._ ..J"':11_..J M a development well withi sands in ADL389l80. Attached is a plat showin. Ninilchik State pad. The pre-drill directional surve) Exhibit "A" are entitled to Should you have any ques1 907-565-3044, or for ques1 Scott Szalkowski at 713-2! Sincerely, ¡Ý /<11 Keith Wiles Senior Land Professional Attachments 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 màilpiece, or on the front if space permits. 1. Article Addressed to: State of Alaska Department of Natural Resour Division of Oil & Gas Attn: William Van Dyke 550 W. 7th Street, Ste. 800 Anchorage,AJC 99501-3580 2. Article Number (Transfer from service labelj PS Form 3811, February 2004 COMPLETE THIS SECTION ON DELIVERY ~~ ( Printed Name) D. Is delivery address different from item 1? If YES. enter delivery address below: , I 3. Service Type ¡~ ~Certified Mail [J Express Mail J [J Registered Iá Return Receipt for Merchandise [J Insured Mail [J C.O.D. 4. Restricted Delivery? (Extra Fee) [J Yes 7006 2150 0004 4538 3530 Domestic Return Receipt 102595-o2-M-1540 , -I=~::=~~.._..._----_..__.~..._-_._._-_._----_..j _......~..~..IiIiI""'.......·,·,·1 . (. M.) Marathon MARATHON Oil Company December 6, 2006 Mr. Robert Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 . Alaska Asset Team Northern Business Unit P.O. Box 196168 Anchorage, AK 99519-6188 Telephone 907-565-3044 Fax 907-565-3076 RE: Location Exception Application Marathon Oil Company Ninilchik Unit, Grassim OskolkoffP.A., Ninilchik State No.3 Well Kenai Peninsula Borough, Alaska Dear Mr. Crandall: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: 1116' FWL & 850' FNL, Section 34, TIN, R13W, S.M. Target: Estimated Top of Tyonek Production Estimate @ 3699' TVD, 7222' MD 2419' FWL & 1819' FNL, Section 28, TIN, R13W, S.M. Bottom Hole: Estimated @ 8069' TVD, 12,057' MD 1693' FWL & 997' FNL, Section 28, TIN, RI3W, S.M. The Ninilchik State No.3 well targets gas bearing Tyonek reservoirs. The well is to be drilled as a development well within the Grassim Oskolkoff Participating Area targeting the Tyonek gas sands in ADL389180. SENDER: COMPLETE THIS SECTION Attached is a plat showi Ninilchik State pad. The pre-drill directional surve Exhibit "A" are entitled tc · 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: Should you have any ques 907-565-3044, or for ques Scott Szalkowski at 713-2 Sincerely, (Ý Chevron USA and Union Oil ( Attn: Kevin Tabler PO Box 196247 Anchorage,AJC 99519-6247 /<11 Keith Wiles Senior Land Professional ~ 3. Service Type ~ Certified Mail D Express Mail D Registered fi4 Retum Receipt for Merchandise D insured Mail D C.O.D. 4. Restricted Delivery? (Extra Fee) Dyes Attachments 2. Article Number (Transfer from service /abeQ PS Form 3811, February 2004 700~ 2150 0004 4538 3523 102595-02-M-1540 Domestic Return Receipt - -~.I;a.";¡...-r-li1iIlïaRllilíIl.I.I¡1!!3 #3 Spacing Exceptions GO-5 and NS-3 . . Subject: Spacing Exceptions 00-5 and NS-3 From: Art Saltmarsh <arthur_saltmarsh@admin.state.ak.us> Date: Thu, 07 Dee 2006 09:14:59 -0900 To: Keith Wiles <kwiles@marathonoil.com> CC: Camille 0 Taylor <cammy _taylor@law.state.ak.us>, Jody Colombie <jody _ colombie@admin.state.ak.us>, Robert Crandall <bob _ crandall@admin.state.ak.us> Good morning Keith, I talked with our legal consultant, Cammy Taylor, yesterday and she raised several questions concerning the Applications for Spacing Exceptions for the Grassim Oskolkoff No. 5 and the Ninilchik State No.3 wells. I'm still learning the procedures here at the Commission, but I could not answer some of the questions Cammy raised from the Application information you submitted. Most of the other information in the Application is sufficient, but would you please provide the following additional information for us: 1- A concise explanation of why a spacing exception is necessary. I realize that the GO-5 will be within 3000 feet of another well capable of producing from the same intervals, but please state that. The NS-3 will be the second well in a Section (less than 640 acre spacing for a gas well); 2- A justifcation for granting a spacing exception. This may be a brief geologic or engineering description which will explain why a spacing exception should be granted by the Commission. My goal is to make the process of applying for spacing exceptions quicker and cleaner for both you and the Commission, I'm not trying to cause you more work. Also, on future Spacing Exception requests, would you please make the following changes: 1- Inclusion of numbers 1 & 2 above; 2- Please adjust the maps so that the lease lines are heavier black lines than the Section lines, with the appropriate lease numbers, Township and Range designations, and an small Index map displaying the area of interest within the State; 3- Please submit an original Application and map, plus a second copy for our records a Xerox copy is sufficient). If you can supply the information for the GO-5 quickly, we will still have sufficient time to consider cancelling the scheduled hearing. Please feel free to give me a call to discuss this (793-1247). Thanks for your help. Best Regards, Art Saltmarsh Senior Petroleum AOGCC Geologist 1 of! 1217/2006 9:24 M Alaska Department of Natural Resources Land Administration System . http://www.dnr.state.ak.us/las/Case_Abstract.cfin ?File Type= AD L&F... . 40f6 12/6/2006 8:37 AM Alaska Department of Natural Resources Land Administration System . http://www.dnr.state.ak.us/las/Case_Abstract.cfin ?File Type= AD L&F... . 50f6 12/6/2006 8:37 AM Alaska Department of Natural Resources Land Administration System . http://www.dnr.state.ak.us/las/Case_Abstract.cfin?FileType= ADL&F... . End of Case Abstract Last updated on 12/06/2006. Not sure who to contact? Have a question about DNR? Visit the puÞJLUlJfor.D:.@!lº}l_ÇE,:_lJt~r. Report technical problems with this page to the Webmaster. Site optimized for Netscape 7, IE 6 or above. This site also requires that all COOKIJ;~ must be accepted. State of Alaska Natural Resources LAS Home CopyriQht Privacy System Status 60f6 12/6/20068:37 AM #2 STATE OF ALASKA . NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS 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-02714013 F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK 99501 AGENCY CONTACT DATE OF A.O. Jodv Colombie PHONE December 7 2006 PCN - ·(907) 791-1221 DATES ADVERTISEMENT REQUIRED: M ~ The Anchorage Daily News December 8, 2006 TIlE MATERIAL BE1WEEN TIlE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON TIlE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal[g o Display Classified DOther (Specify) SEE ATTACHED SEND INVOICE IN TRIPUCATE AOGCC, 333 W. 7th Ave., Suite 100 TO Anchofa:!;e, AK 99501 NUMBER AMOUNT DATE TOTAL OF ¡I PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS REF TYPE 1 VEN 2 ARD 3 4 FIN AMOUNT 02910 1 2 3 4 REQUISITIONED BY: SY 05 CC PGM LC ACCT FY NMR DlST LlQ 02140100 73451 ,.. l.~ \(~f\~~/ \ \J IDIVISION APPROVAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company for a spacing exception to allow the drilling and production of the Ninilchik State No.3 gas development well in accordance with 20 AAC 25.055. Marathon Oil Company by letter dated December 6, 2006 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on December 5, 2006, has requested the Commission to issue an order in conformance with 20 AAC 25.055 (a) (4) allowing drilling and regular production of the Ninilchik State No. 3 gas development well, which if productive may be the second well producing from the Tyonek Formation in Section 28, Township 1 North, Range 13 West, Seward Meridian. The surface location of the proposed well is 850 feet from the north line (FNL) and 1116 feet from the west line (FWL) of Section 34, TIN, R13W, SM. The proposed bottomhole location is 997 FNL and 1693 FWL of Section 28, TIN, R13W, SM. The Commission has tentatively scheduled a public hearing on this matter for January 11,2007 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on December 27, 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 January 2,2007. Additionally, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on January 9,2007 except that if the Commission decides to hold a public hearing, written protest or comments must be received no later than the conclusion of the January 11, 2007 hearing. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact the Commission's Special Assistant Jody Colombie at 793-1221 before January 8, 2007. ~Cœ~ Commission Published Date: Anchorage Daily News: 12/8/06 AO# 02714013 Re: Public Notice . . Subject: Re: Public Notice From: "Ads, Legal" <legalads@adn.com> Date: Thu, 07 Dec 200615:47:14 -0900 To: Jody Colombie <jody _ colombie@admin.state.ak.us> Hello Jody: Following is the confirmation information on your legal notice. Please review and let me know if you have any questions or need additional information. Account Number: STOF 0330 Legal Ad Number: 74873 Publication Date(s): December 8, 2006 Your Reference Number: 02714013 Total Cost of Legal Notice: $202.24 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On 12/7/06 1:19 PM, "Jody Colombie" <jody_co.;Lombìe@admìn.state.ak.us> wrote: Please publish tomorrow. Jody Colombie 1 of 1 12/8/2006 8:20 AM . Anchorage Daily News Affidavit of Publication . 1001 Northway Drive, Anchorage, AK 99508 PR(CE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 74873 12/08/2006 02714013 STOF0330 $202.24 $202.24 $0.00 $0.00 $0.00 $0.00 $0.00 $202.24 Christine Clark, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individu s. S ·bed and sworn to me before this date: [J~te~h(..e/L J/) J[)O~ . \ Notice of Public Hearing 51'A1'EOF ALASKA . Alaska 011 ancl Gas c:onservatlonCommlsslon Re: The application of Marathon 011 Con:II>O'!v fOr a spacing excøPtion to allow the drilling and prOduction of the Ninilchik state 11I.0. 3 gas development wellin accordance with 20 MC 25.055. Marathon 011 Companv by lettèr dated .December 6 2006 and received bv the AlaS,,"a Çhl ancl Gas c'onservation commission ("CommIssIon") .on De- cember 5. 2006, has reqllested th.e COlT!mls~lon to issue an order in conformance with 20 AAC ~5.055 (a) (4) allowingdrillll\g and regular prodUÇtlOR of the Ninilchik State No.3 gas development well. which If productive mav be thesec~na well pro- aucing from the Tyonek Formation In section ~, Township 1 North, Range 13 West, Seward Mend- Ian The surface location of the proposed well is 850 feet from the north line (FNL) ana nt6 feet f.roS!!." the west line (FWL) of&eçtlon 34, Tl N, Rl3W ~ .... The proPDsea bOttom hole. 19Catlon is 997 F.NL ana, 1693 FWL of Section 28,T1N(R13W, SM. The Commission has tentatiVelY scheauled a pub- lic hearin90n this mQtter for January 11, 2II071at 9:00 om at the AlaskaQiI and Gels co!'servat ø~ Commission at 333 Wesf7th Avenue, SUltelll\), Art' chorage, Alaska 99501. . A ~r50n m<lY request .t~at the tentativelv schedulef heari.ng hJlld by flhng a written reque$f witlti,fhe SlCln !III later than 4:30 pm on Decembér ~7 If.a réqUest for a hetlringl~ñot tilTlel}ffHed¡ the. Commission may considertheis~ce of C!n !Jr- der withOut a hearing. TO learn. if . ·lf~T~f'gr will hold the public hearing,. pleQ$e ca"..- - ter JtlRuary. 2.2007. . AdditionallY, a person m!lY ~ubmit writtell com- mentsregarding this application to the Alaska ~ and Gas Conservation Commission at 333 West ,t Avenue Suite 100, Anchorage, Alaska 99501. Wr¡t~ ten comments must be received no later than 4:30 pm on January 9, 2007exceOf .:tftOt Itf\'ll!''(:Qmmls- IIlon declaes to hold a publIOheC!ring., .wrllten PrOo- test or comments must be received no later th\ll'l the conclusion of the· Janlltlry 11, 2007 hearlf19., If vou are a person with a disability whOmav ne.~ a specitll modiflcatian in arder to comment ar to attend the pUblic hearing, please contact. tl\,' Commilllllon's SpeciQI Assistant Jody Colomble,!!t 793-1221 befOre January 8, 2007. 151: èathv.P. Foerster Commission ~~,f;J~~te: December 8,2006 STATE OF ALASKA THIRD JUDICIAL DISTRICT Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY MMISSION EXPIRES, 00 5{~Ó 7 ! . \{(((({(fltr fl\.Y 4. if!"" c " . -. ·"l*·~""":'" ~~.6 'Þ'I\;mt(,. ..':rt"!!'...~,... ""'~I· 0, ~A ,"*t, ~$~).~ . ~'~If'\ltþe''¡\1'< ~ .. ''''''' _ø;¡,.'., ._ ... ^ ". ..... - . i'·L~~;·f"·v . .... = '£ . 1¡j;""-'1I__, .. P;; ,~ -~~ . ~\,.. ....... d' - ¡:~'\., -- r~ . ~ d:'. . ',. ..... ~.. ~k . ¡:ì':.. t~""" . (".~ ..;,..,"1;,'- ,~o¡:: þ.::.' >"'\ --:;.. ."~\,,, ,:'.' ';:¡,!}'\:\\ -",,1.1 '~Ik,¡"\,,,",.,. \ \ /',) ;'yJfJ ¡;¡ \ ì STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE AODRESS . NOTICE TO PUBLISHER. ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02714013 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AGENCY CONTACT Toc1v r, 1 1 . PHONE I (907) 791 -1?,) 1 DATES ADVERTISEMENT REQUIRED: DATE OF A.O. AOGCC R 333 West 7th Avenue. Suite 100 o Anchorap"e_ AK 99.501 M 907-793-1221 n 1 7 ')001\ PCN T o The Anchorage Daily News December 8, 2006 THE MATERIAL BE1WEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed 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 2006, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2006, 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 2006, Notary public for state of My commission expires UBLISHER Public Notice . . Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Thu, 07 Dec 2006 13: 19:22 -0900 To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish tomorrow. Jody Colombie Jody Colombie <iody colombie(cì2admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/msword Ad Order form.doc Content-Encoding: base64 Content-Type: application/msword Ninilchik State 3.doc Content-Encoding: base64 10fl 12/7/20061:29 PM Public Notice Ninilchik State No.3 . . Subject: Public Notice Ninilchik State No.3 From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Thu, 07 Dec 2006 13:29:01 -0900 To: undisclosed-recipients:; BCC: Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjrl <trmjr l@aol.com>, jdarlington <jdarlington@forestoil.com>, nelson <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Mark Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P . Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "Randy L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "Steven R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <kuacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.com>, Mikel Schultz <Mike1.Schultz@BP.com>, ''Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fullmer@conocophillips.com>, Charles Barker <barker@usgs.gov>, doug_schultze <doug_schultze@xtoenergy.com>, Hank Alford <hank.alford@exxonmobi1.com>, Mark Kovac <yesno l@gci.net>, gspfoff <gspfoff@aurorapower.com>, Gregg Nady <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, £crotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancy <eyancy@seal-tite.net>, "James M. Ruud" <james.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>,jah <jah@dnr.state.ak.us>, buonoje <buonoje@bp.com>, Mark Hanley <mark _ hanley@anadarko.com>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary _schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, 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>, jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, nI617@conocophillips.com, Tim Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@conocophillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary Rogers <gary_rogers@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 <Iris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, Aleutians East Borough lof2 12/7/2006 1:29 PM Public Notice Ninilchik State No.3 . . <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoi1.com>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Thomas E Maunder <tom _ maunder@admin.state.ak.us>, Stephen F Davies <steve _ davies@admin.state.ak.us>, Keith Wiles <k:wiles@marathonoi1.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@c1earwire.net>, Laura Silliphant <laura _silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobi1.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_ bloom@ml.com>, Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, Mike Stockinger <Mike.Stockinger@anadarko.com>, , Arthur C Saltmarsh <art_saltmarsh@admin.state.ak.us> Jody Colombie <iody colombie(á?admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/pdf ninilchilk state 3.pdf . Content-Encodmg: base64 20f2 1217/20061:29 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oillnforrnation 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 Kart K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 0i f\ \\Q ~ #1 . . Alaska Asset Team Northern Business Unit Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6188 Telephone 907-565-3044 RE·C EIVED Fax 907 -565-3076 . . . ..>C- DEC 0 , 2006 December 6, 2006 Alaska Oil & Gas Cons. Commission Anchorage Mr. Robert Crandall Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 iu1chorage,AJe 99501-3539 RE: Location Exception Application Marathon Oil Company Ninilchik Unit, Grassim OskolkoffP.A., Ninilchik State No.3 Well Kenai Peninsula Borough, Alaska Dear Mr. Crandall: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: 1116' FWL & 850' FNL, Section 34, TIN, R13W, S.M. Target: Estimated Top of Tyonek Production Estimate @ 3699' TVD, 7222' MD 2419' FWL & 1819' FNL, Section 28, TlN, R13W, S.M. Bottom Hole: Estimated @ 8069' TVD, 12,057' MD 1693' FWL & 997' FNL, Section 28, TlN, R13W, S.M. The Ninilchik State No.3 well targets gas bearing Tyonek reservoirs. The well is to be drilled as a development well within the Grassim Oskolkoff Participating Area targeting the Tyonek gas sands in ADL389180. Attached is a plat showing the Ninilchik State No.3 surface location and well paths from the Ninilchik State pad. The Top Tyonek cut point is noted on each well path. Also attached is a pre-drill directional survey for the Ninilchik State No.3 well. Furthermore, the parties listed on Exhibit "A" are entitled to notice of this application and have been duly notified. Should you have any questions related to land or ownership issues, please contact Keith Wiles at 907-565-3044, or for questions regarding the technical aspects of this application, please contact Scott Szalkowski at 713-296-3390. Sincerely, ~ /<;1/ Keith Wiles Senior Land Professional Attachments . . Exhibit "A" Ninilchik Unit Ninilchik State No.3 Location Notification List Name Line 2 Address City State Zip State of Alaska Department of Natural Resources Attn: William Van Dyke 550 W. ih Street, Ste. 800 Anchorage AK 99501-3580 Division of Oil & Gas Chevron USA and Union Oil Attn: Kevin Tabler PO Box 196247 Anchorage AK 99519-6247 Company of California Marathon Oil Company Attn: Keith Wiles PO Box 196168 Anchorage AK 99519-6163 . . AFFIDAVIT Comes now Christine D. Gay, and first being duly sworn upon her oath, states and deposes as follows: 1. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past three years I have worked in Alaska for Marathon Oil Company (MOC) in the Alaska Land Department. 4. That I have assisted in preparing a notification list for a Location Exception application for the Marathon Ninilchik State No.3 well with a surface location in Section 34-TlN-R13W and bottom hole location in Section 28-TlN-R13W, S.M. 5. That on or about December 6,2006 MOC employees mailed notice of the Ninilchik State No.3 Well Location Exception application to all of the mineral owners, working interest owners, and overriding royalty owners within a 3,000 foot radius of the proposed well location by certified mail, return receipt requested. A list of these noticed owners is attached to this affidavit as Exhibit "A". The postal return receipts will be made available for inspection by proper parties. These notices were mailed to their last known address or record address, and I believe that we have mailed the notice letters to good current addresses. In view of the foregoing facts, affiant herein states and deposes that Marathon Oil Company, as operator of the proposed Ninilchik State No.3 well, has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. IZ/C/Ó? Date / ./ --------------------------------------------------------------------------------------------- STATE OF ALASKA rJ )ss. ð RECORDING DISTRICT ) This certifies that on /)¿.1t1rivtJ!3 , 2006, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared Christine D. Gav of Marathon Oil Company. known to me to be the person described in, and who executed the foregoing agreement, who then after being duly sworn according to law, acknowledged to me under oath that she executed same freely and voluntarily for the uses and purposes therein mentioned. WITNES,S, N¥ fflnd and official seal the day and year in this certificate first above written. \,,:\>~" '\" \ ( ~~~rr_ ~' t~ ' .-C> .........'., . . "y,,'r ,J---- ,"- ",... .,' , . v~ r /1, 'j)/í ":::4)· t .1-. ¡",.:.~n~ / :,,{, ~ :' / .~' :::. NOTARY P B in an<;l1ór Alasj}a/ 3 Ji/tJq ::: _:, ;:: My Commis io EXPires:~M'fW ¡ / ~ ;2:, . -. ~\~¡' .."I ~;~\.~ ~ ¡ :-I.; ";'1>, ; :';,..1"". ).1;)) . 28/27 33t34 SECTION LINE NOTE: SECTION LINES NOT TO SCALE STATE PAD NO.3 WELL ASBUIL T LOCATION ASP ZONE 4 NAD27 GRID N:2245972.310 GRID E:222324.310 LATITUDE: 60008'20.813''''N LONGITUDE: 151°31'24.067"W - FWL = 1072' 1- FNL = 858' ELEV = 148.2~MSL) 1072) FWL NS-3 / SEC;~ON .. / - -:/_ ~NILCHIK STAtE / ___ I / r-- - _ -PAQ! ' // / -----~~- L.U Z ....J Z o I- U L.U Cf) la ;f II} la 1--- I I I- I I I I I NOTES 1. BASIS OF COORDINATES IS KEN1 CORSSTATION, NAD27 ALASKA STATE PLANE ZONE 4. 2. BASIS OF VERTICAL CONTROL IS NGS BENCH MARK MONUMENT V 82, ELEVATION = 289.42 FEET (NGVD 88). ~ . MARATHON OIL COMPANY IiUt1IIlA JII!ODf Consulting Inc. ENGINEERING I MAPPING I SURVEYINGITESTING P.O. BOX 468 SOlDOTNA, AK. 99669 VOICE: (907) 283-4218 FAX: (907) 283-3265 EMAIL: SAMCLANE@MCLANECG.COM ----~ <Q~/ ~ o <3"/ ~/ 20" CONDUCTOR ~'V:" / 8'CMP .;<:- ~0/N.S. # 1 WELL SECTION 34, TOWNSHIP 1 N, ~ ~ N: 2245904.532 RANGE 13W, SM AK _ ~~ E: 122422643 ,~/ ELEVl = 147.82' ~/ ! <0\5/ ' / 2 WELL 22458~5. 7 222384 25 = 48.0' PROJECT /' ('I) I CJ) Z -' Z LL ëo I.() CO --- --- --- -- --- J 1\ I I -- I I I ( -I SCALE 60 I FEET 120 I o I REVISION: 1 NINILCHIK, STATE PAD NO.3 ASBUIL T LOCATION DIAGRAM DATE: 11/02106 DRAWN BY: MSM SCALE: 1" = 60' LOCATION PROJECT NO. 0630! BOOK NO. 06-26 SHEET 1 OF- S34 TiN R13WSEWARD MERIDIAN, ALASKA . . MARATHON Oil Company Slot: Well: Location: Cook Inlet, Alaska (Kenai Penn insula) Field: Ninilchik Field Facilit: Nini chik tate ... UU. ....... INTEQ Plot ,,,f,,.en,,e wellp"th is NS #3 Version #1 Trueverticelde hserereferel"lcedtoGlecler#1 RKB Measured deptns are referenced to Glacie, #1 RKB) Glacier¡!1 (RKB) to Mean Sea L........' 169'....1 Mean Sea Leve. to Mud line (Facility _ NiniIChil< SI..'e); 0 f....t Coot<linatese,e In feet rel'erenced to Slot Grid stem: NAD27 I TMAI........ SI"I.. PI,,,,,,. ~on" 4 5004 . US f....t NortnR..!erefIC..:Truenorlh Well Profile Data n-.innComment MD n ¡no· ,,"' won} Local N (ft) Local E ft DLS 0/1ooft VS(ft T,eQn 0.00 0.000 317.331 0.00 0.00 0.00 0.00 0.00 KDP 200.00 0.000 317,331 200.00 0.00 0.00 0.00 0.00 End of Build 1500.00 65.000 317,331 1238.55 486.49 -448.42 5.00 661.63 ¡nDro noo.oo 65.000 317,331 3647.48 4284.94 -3949.69 0.00 5827.58 EndDro 9366.56 0,000 317,331 5378.40 5095.75 -4697.06 3.00 6930.30 TD 12057.26 0.000 317.331 8069.00 5095.75 -4697.06 0.00 6930.30 Created :mic......1 on11/29f2006 -750 o ~ : 0.00<> Inc, 200.0Off MO, 200.GOft TVO, O.OOft VS 2250 3000 g ~ 3750 15. Q) 0 ãi 0 4500 'f ~ Q) ::¡ t= 5250 6000 6750 7500 8250 9000 9750 -750 0 750 1500 Maximum Angle 65 Deg 29-Nov-06 29-Nov-( NS #3 Tyonek T10 29-Nov· End Drop NS #3 Tyonek T3 29-Nov-Of NS #3 Tyonek T90 29-Nov-C 4.5in Casing TD NS #3 Tyonek TD 29-No\ 2250 3000 3750 4500 5250 6000 Vertical Section (ft) Azimuth 317.33<> with reference 0.00 N, 0.00 E from wellhead 6750 7500 8250 SCale 1 ir.ch = 1500ft . . ARA THaN Oil Compar Slot: Well: Wellbore: Location: Cook Inlet, Alaska (Kenai Penninsula) Field: Ninilchik Field Facilitv: Ninilchik Stat" Slot #3 NS#3 N~#3 ... IADR ....... INTEQ Plot reference we.1 t;jsNS#3Version#1 T."""ertica'<Ie ....,..referencedl"ßI..cie.#1 " GridS I.."" NAD27 I TM Alaska Stat<> Plane, Zon.. 4 5OO4,USt,,&! M..uureddecths are relerenced to Gfacier #1 "'" N<mh Referer\Ce: True "crtn Glacier #1 RKB 10 Mea" S.... Level; 1691""1 Scale: T.UI! dist<once M.."n Se"Levello MUd line (Facilitv_Nlnll<:hik State): 0 feel DeDthsareinfeat Coordinate,...", in reet referenced to Slot Created mictmil on 1112912006 Targets ,,~ ."" NO~ Lo<.¡N(f\) L<>eoIE(ft} G,IdEo.. uS\) Gri.:lNorlh(tJSft) lo!,"~. loo¡¡;tudø ..~ o"'"kT'2.....ov.œ 3OOQ,oo 4!i"M! "539.12 217900.00 m1(OJ)1)O 8<:r'O'10S.:>o2"N 151°32'53.738'W NSIOJT,.._n2~.".,..œ 41~~.OO 4924.41 -I~~.'2 217000,00 :1:251000,00 60"09'M.307N 151'3:1'53.736"W N$tI3Ty<>...kT1C~ 47101.00 4924.41 ",,53~.12 217900,00 1251000,00 !IO'09" 09.302"N 151'3753.~ N$#3 ....'1"329-N-<><I 58IMI) .~, "53~.12 217900.00 1251000,00 110' W09.302"N 151'3753.736"W ".~-~,~ ,-- 729<.00 .~, ..539.12 217900.00 :251000.00 ~·WOO.302"N 151'3753.736"W ""~~_'O - 8069.00 '92-4.'1 --I5Ji.12 217900.00 2251000.00 oo'09'09.:3<)2"N 151·32'53.~ Well Profile Data De5i nComment MD' Inc 0 kz . WI," LocalN LocalE ft DL$ "¡100ft VSlft) Tie On 0.00 0.000 317.331 0.00 0.00 0.00 0.00 0.00 KDP 200,00 0.000 317.331 200.00 0.00 0.00 0.00 0.00 End of Build 1500.00 65.000 317.331 1238.55 486,49 -448.42 5.00 661.63 in[);o 7200.00 65.000 317.331 3647.48 4284.94 -3949.69 0.00 5827.58 EndDro 9366.66 0.000 317.331 5378.40 5095.75 -4697.06 3.00 6930.30 TO 12057.21'$ 0.000 317.331 8069,00 5095.75 -4697,06 0.00 6930.30 Scale 1 indl KOP Slot #3 500 10006000 5500 5000 4500 4000 3500 3000 Z 0 ;::¡. 25002: ::¡ (Q .3 2000 1500 1000 500 0 -500 ¡~5in Casing End Drop ¡:~ i~ +Y.g;\~~ Wo ~1ï..~O't?Ji6 NS #3' f~onek T3 29-Nov-06 NS #3 T onek T1 0 29-Nov-06 ~¿:¡'!1iè yonek T 1 29-Nov-06 N 1 WV' 8GGM (1945.0 to 2008.0) Dip: 73.09' Field: 55282.8 nT Magnetic North is 19.1 0 degr<Jes East of True Nom (at 11129106) To correctazimutl1 from Magne1icto True add 19.10 degroe5 Planned Wellpath Report NS #3 Version #1 Page 1 of7 r&1I1I BAKER HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION ~ ~ ~ --- ~ - - ~ -~- -- ----- ~-- - - - -~ - ~ - ~ _ ~____~ ~__ ~~___ __~ ___~~_~ ___~__ ~~W -~ --- ~- - - --- - ---~- ~ ~ -- -~-- ~---~-~~ -<-~ ~- -~-----~~ -- -~ . Operator MARATHON Oil Company Slot Slot #3 'Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State Projection System North Reference Scale Wellbore last revised . NAD27 I TM Alaska State Plane, Zone 4 (5004), US feet True 0.999988 11/29/06 Software System User Report Generated Database/Source file WellArchitect™ 1.2 Michwilg 11129/06 at 11:56:43 W A Anchorage/NS#3.xml WELLPATH LOCATION - -- - - - - - - -----~~ - Local coordinates Grid coordinates Geographic coordinates North [feet] East [feet) Easting [US feet) Northing [US feet) Latitude [0) Longitude [0) Slot Location -850.48 1080.27 222324.31 2245972.31 600820.813N 1513124.067W Facility Reference Pt 221264.03 2246847.56 600829.190N 1513145.399W Field Reference Pt 226657.85 2252005.12 60 09 21.189N 1513001.220W . . Calculation method Horizontal Reference Pt Vertical Reference Pt . MD Reference Pt Field Vertical Reference Slot Glacier #1 (RKB) Glacier #1 (RKB) Mean Sea Level Glacier #1 (RKB) to Facility Vertical Datum Glacier #1 (RKB) to Mean Sea Level Facility Vertical Datum to Mud Line (Facility) Section Origin Section Azimuth 169.00 feet 169.00 feet 0.00 feet N 0.00, E 0.00 ft 317.33° - Planned WeIlpath Report NS #3 Version #1 Page 2 of7 BAKER HUGHES INTEQ Planned Wellpath Report NS #3 Version #1 Page 3 on iíll BAKER HUGHES INTEQ Planned Wellpath Report NS #3 Version #1 Page 4 of7 BAKER HUGHES INTEQ ook Inlet, Alaska (Kenai Penninsula) inilchik Field inilchik State Planned Wellpath Report NS #3 Version #1 Page 5 of7 BAKER HUGHES INTEQ Planned Wellpath Report NS #3 Version #1 Page 6 of7 BAKIR HUGHES INTEQ Planned Wellpath Report NS #3 Version #1 Page 7 of7 1'&11_ BAKER HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION ~ - ~~ - ~- --------~-~ ~ - ---- ~--- --- -- --- -- -- - -- ~ - - -~~- ~~ ~ ~ ~-~ --- --- ~ ~ ~ ------~~-- ~ ~ ~ ~ ~ ----- - --- --- -- ----- - --~ - - ~- " ~---' Operator MARA THON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State ,...,,·"".._,·......,·_..·.·.·.·,w.·_·.·.·.·.·_·.·.·.·.,._.....·.·.·._.__.·...·.·..·...·_....,,·,,··,··,·"v,···..··.. __, "_,,.,,_....,,_..,_.. .ßOLE&CASJ.Nti SECtIONS Ref Wellbore: NS#3 RefWellpath: NS #3 "cnill,J..:t#l StringlDiameter Start MD End MD Interval Start TVD End TVD Start N/S Start EIW End NIS EndEIW [feet) [feet) [feet) [feet) [feet) [feet) [feet) [feet) [feet) 9.625in Casing Surface 0.00 1645.40 1645.40 0.00 1300.00 0.00 0.00 583.38 -537.74 7in Casing Intermediate 0.00 7249.55 7249.55 0.00 3669.00 0.00 0.00 4317.75 -3979.93 4.5in Casing Production 0.00 12057.25 12057.25 0.00 8068.99 0.00 0.00 5095.75 -4697.06 MD TVD North East Grid East Grid North Latitude Longitude [feet) [feet) [feet) [feet) [us survey feet) [us survey feet) [0) [0) 3669.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 3253.736 S #3 Tyonek Tl 29-Nov-06 217900.00 2251000.00 60 09 09.302N 1513253.736W circle S #3 Tyonek T2 29-Nov-06 217900.00 2251000.00 60 09 09.302N 151 3253.736W circle NS #3 Tyonek TlO 29-Nov-06 217900.00 2251000.00 60 09 09.302N NS #3 Tyonek T3 29-Nov-06 217900.00 2251000.00 60 09 09.302N 151 3253 NS #3 Tyonek T90 29-Nov-06 217900.00 2251000.00 60 09 09.302N NS #3 Tyonek TD 29-Nov-06 Wellpath Design Summary Report Wellpath: NS #3 Version #1 Page 1 of2 BAKIR HUGHII INTEQ orizontal Reference Pt ertical Reference Pt D Reference Pt . . Wellpath Design Summary Report Wellpath: NS #3 Version #1 Page 2 of2 r41_ BAKIR NUGHII INTEQ . ARATHON Oil COmpany Cook Inlet, Alaska (Kenai Penninsula) Ninilchik Field Ninilchik State Name MD TVD North East Grid East Grid North Latitude Longitude (feet] [feet] [feet] [feet] ... [us surveyfeetl (us survey feet] [0] [0] NS #3 Tyonek T1 29-Nov-06 3669.00 4924.41 -4539.12 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle NS #3 Tyonek T2 29-Nov-06 217900.00 2251000.00 60 09 09.302N 1513253.736W circle 217900.00 2251000.00 60 09 09.302N 1513253.736W circle iNS #3 Tyonek no 29-Nov-06 217900.00 2251000.00 60 09 09.302N 151 32 53.736W circle NS #3 Tyonek T3 29-Nov-06 217900.00 2251000.00 60 09 09.302N 15132 53.736W circle NS #3 Tyonek T90 29-Nov-06 217900.00 2251000.00 60 09 09.302N 1513253.736W circle NS #3 Tyonek TD 29-Nov-06 Location: Field Cook Inlet, Alaska (Kenai Penninsula) Ninilchik Field il Compan Slot: Slot #3 Well: NS #3 Tie 0" JOOO .00 0.00 0.00 0.00 KOP End of Build '" ·"8<2 5.00 661.63 Be ¡"Drop 7200.00 0.00 5827.58 9366.66 ·'09706 100 6930.30 TD 12057.26 721Koo -200 -175 100 125 150 250 225 200 175 150 8GGM (1945.0 to 2008.0) Dip, 73.080 Fiekl: 55282-8 nT Magnetic North i$ 18.10 deg,e"$ Ëa$tof True North (aI11/29/OO) To oorrectazimu1:t1 from Magne1Jc to True add 19.10 (jegrees 125 100 Z 0 ;:¡. 75 ::r S· CO 2 50 25 0 -25 ·50 ·75 2702 ARAT Location: Cook Inlet. Alaska (Kenai Penninsula) Field: Ninilchik Field Facilit Ninilchik State Oil Company Slot: Well: Wellbore: Slot #3 NS#3 NS#3 O· Traveling Cylinder: Map North 330· 1601/ 120ft 801t 4(}1t 4<lf1 8MI t20ft ..Oft 210' 30· 5827.58 6930.30 6930.30 1iíI0· Scale 1 inch '-60ft Clearance Report Closest Approach NS #3 Version #1 Page 1 of 13 t RATHON Oil Company ok Inlet, Alaska (Kenai Penninsula) Ninilchik Field Ninilchik State r&illI BAKER HUGHES INTEQ . ection System orth Reference cale Wellbore last revised NAD27 I TM Alaska State Plane, Zone 4 (5004), US feet True Software System User Report Generated Database/Source file WellArchitect™ 1.2 Michwilg 11/29/2006 at 2:02:26 PM W A Anchorage/NS#3.xml Local coordinates Grid coordinates WELLPATH LOCATION - -- --- ~ - --~-------------~~--- ------- - -- - --- - -- Slot Location Facility Reference Pt Field Reference Pt North [feet] -850.48 Northing [US feet] 2245972.31 2246847.56 2252005.12 East [feet] 1080.27 Easting [US feet] 222324.31 221264.03 226657.85 Geographic coordinates Latitude [0] Longitude [0] 60 08 20.813N 1 31 24.067W 600829.190N 15131 45.399W 600921.l89N 15130 01.220W Calculation method Horizontal Reference Pt Vertical Reference Pt MD Reference Pt Field Vertical Reference Glacier #1 (RKB) to Facility Vertical Datum Glacier #1 (RKB) to Mean Sea Level Facility Vertical Datum to Mud Line (Facility) Slot Glacier #1 (RKB) Glacier #1 (RKB) Mean Sea Level Ellipse Confidence Limit Declination 0.00 feet 73.09° e Position Uncertainty Magnetic Field Strength included 55283 nT Ellipse Start Depth Dip Angle ° East of TN E-type Closest Approach w/Hole&Csg Limit:O StdDev:3.00 w/Surface Uncert Closest Approach Ellipsoid 0.00 feet Subtract Casing & Hole ·Size yes Apply Cone of Safety no End MD Interval End TVD Start N/S Start EIW End N/S EndEIW [feet] [feet] [feet] [feet] [feet] [feet] [feet] 9.625in Casing Surface 0.00 1645.40 1 0.00 1300.00 0.00 0.00 583.38 -537.74 7in Casing Intennediate 0.00 7249.55 7249.55 0.00 3669.00 0.00 0.00 4317.75 -3979.93 4.5in Casing Production 0.00 12057.25 12057.25 0.00 8068.99 0.00 0.00 5095.75 -4697.06 . . Clearance Report Closest Approach NS #3 Version #1 Page 2 of 13 BAKER HUGHES INTEQ aviTrak (Standard) 'utoff: 1500.00 feet Offset Well Offset Wellbore Offset Wellpath Diverging from MD Ifeet] Min C-C Ell Sep Ifeet] MGO #1 Paxton# I MWD <0-10346> MWD <0-11500'> MWD<0-10115> 0.00 PASS 1500.00 PASS 1500.00 PASS 0.00 PASS Clearance Report Closest Approach NS #3 Version #1 Page 3 of 13 r&__ BAKER HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION , -~~- ~--- -~ -- - - ~ - - ~ - -. --~ ~~--~-=".. ---------- -~ - -~~ -~ -- --~--- - -~~~----~~~---- - -~- - -- - ------~-~- ¥ -- -------~ Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penn insula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State Ref MD [feet] 0.00 0.00 0.00 0.00 C-C Clearance Distance Cutoff: 1500.00 feet Offset TVD feet -5.71 Offset North [feet] 9490.81 Offset East [feet] 6655.72 Ellipse Sep [feet] 11291.35 ACR MASD ACR [feet] Status 300.64 PASS 0.00 Offset Wellbore: End MD feet] 11600.00 NaviTrak (Standard) ELLPATH Start MD [feet] Log Name/Comment WelIbore MWD <0-11600'> MOO #1 Ojjset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) . Clearance Report Closest Approach NS #3 Version #1 Page 4 of 13 lJ&illI BAKIR HUGHIS INTEQ REFERENCE WELLPATH IDENTIFICATION ~ - ~-- ~-- - ~-- -- -~-- ~--- ~~ -----~-- --- - --- ~ ~ ~------~---- - - ~- --- -- -~ - "-~ ~~ -- - - . ~ ------- ---- - --~ ~--- - - - -- ----- - - ~ --- ~- ----~~ .~-- --~------ - - -~-~- Operator MARA THON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State 10.82 Ellipse Sep [feet] 9995.99 ·WELLPATH COMPOSITION Offset Wellbore: MGO #2 Start MD End MD [feet] feet] 0.00 2341.00 Oyrodata standard - Continuous gyro 2341.00 12026.00 NaviTrak (Standard) "f;:,'r/8iJf£"'02!itH;;;:Yfd;!YiY!!2fYW;=<~<';."" " ^'\L';2)fVÞJÆ'";¡:K:=~9fii'···';··¿ ··,,^~1IR750?8iJ¡ffl;!i.Uith,~"·' Offset Well ath: PGMS<O-2500'>MWD<2523-12026'> Positional Uncertainty Model Log Name/Comment Well bore S <0-2500 D<2523-12026'> MOO #2 MOO #2 Offset TVD & local coordinates use Reference Wellpath settings (See WELL? ATH DATUM on page 1 of this report) D Reference: Glacier #1 (RKB) . Clearance Report Closest Approach NS #3 Version #1 Page 5 of 13 r&ííll BAKER HUGHES INTEQ REFERENCE WELLP A TH IDENTIFICATION -- -~~ - ~- - ~--~ -~ -- ~ ~_ ____________~_ _~___.__ _~_w__ _ ~ ~-~---------- ""-~~ ~-- --- --~---~----- ---------------~~~ - - ~---- -- ------- --- ..., Operator MARATHON Oil Company Slot Slot #3 IArea Cook Inlet, Alaska (Kenai Penninsula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State t Offset East [feet J -290.67 Offset Start MD [feetJ 0.00 2508.00 7332.00 0.0 O. O. O. <0-13771> String/Diameter End MD [feetJ 2508.00 7332.00 13771.00 99.00 2507.00 7320.00 I Start TVD [feet] -18.00 1754.50 3409.96 -18.00 -18.00 -18.00 -18.00 12.25in Open Hole 8.5in Open Hole 6.125in Open Hole 20in Conductor 9.625in Casing Surface 7in Casing Intermediate 3.5in Liner ath: NaviTrak (Magcorrl) Horiz Bearing [oJ ACR MASD [feetJ 501.05 End TVD [feet] 1754.50 3409.96 8128.95 81.00 1754.15 3405.86 8128.95 Start N/S [feet] 5711.61 5609.06 5268.98 5711.61 5711.61 5711.61 5711.61 Start EIW [feet] 4000.58 3573.94 2235.82 4000. 4000. 4000.58 4000.58 MWD <0-13771> Log Name/Comment MGO #3 Offiet TVD & local coordinates use Rejèrence Wellpath settings (See WELLPATH DATUM on page 1 of this report) Well bore Clearance Report Closest Approach NS #3 Version #1 Page 6 of 13 lJ&illI BAKIR HUGHIS INTEQ t ARATHON Oil Company ook Inlet, Alaska (Kenai Penn insula) Ninilchik Field Ninilchik State Offset MD [feet] 4.98 ACR MASD [feet] Status 301.20 PASS -'-·:O·ii/!¡:.U'7.:'{·_"A"·'·'-- --'<7:;;~,:~CIfIJfÆiJiWf!f~"'¥2-?f:"-, !HOLE & CASING SECTIONS Offset WelIbore: Offset WelIPath: MWD<Q-8175> String/Diameter Start MD End MD Interval Start TVD End TVD Start NIS Start E/W End NIS End E/W [feet) [feet) [feet) [feet] [feet) [feet) [feet) [feet) [feet) 12.25in Open Hole 120.00 3300.00 3180.00 101.98 1456.27 5678.38 4020.88 6111.48 3397.18 8.5in Open Hole 3300.00 8175.00 4875.00 1456.27 4809.69 6111.48 3397.18 6682.30 2547.57 13.375in Conductor 0.00 116.00 116.00 -18.00 97.98 5677.80 4020.83 5678.35 4020.87 9.625in Casing 0.00 3283.00 3283.00 -18.00 1452.82 5677.80 4020.83 6109.02 3401.62 3.5in Liner 0.00 81 8175.00 -18.00 4809.69 5677.80 4020.83 6682.30 2547.57 Log Name/Comment Wellbore 0.00 1686.00 3225.00 3480.00 End MD [feet 1686.00 NaviTrak (Magcorrl) 3225.00 NaviTrak (Standard) 3480.00 NaviTrak (Magcorrl) 8175.00 NaviTrak (Standard) MWD <0-1686> D <1748-3225> WD <3292-3480> WD <3543-8175> MGO#4 MGO#4 MGO#4 MGO#4 Offset TVD & local coordinates use Reference Well path settings (See WELL? A TH DA TUM on page I of this report) Clearance Report Closest Approach NS #3 Version #1 Page 7 of 13 If&illI BAKER HUGHES INTEQ J MARATHON Oil Company Cook Inlet, Alaska (Kenai Penninsula) Ninilchik Field Ninilchik State C-C Clear Dist [feet] 36.35 9783.24 ACR MASD Log Name/Comment Wellbore Photomechanical Magnetic (Standard) MSS <0-8256'> SoCal Falls Creek - Offset Falls Creek Offset Wellpath: "ljjSet TVD & local coordinates use Reference Wellpath settings See WELLPATH DATUM on page I of this report) D Reference: Datum #2 (RKB) . Clearance Report Closest Approach NS #3 Version #1 Page 8 of 13 lJ&iíll BAKIR HUGHIS INTEQ . MARA THON Oil Company Cook Inlet, Alaska (Kenai Penninsula) Ninilchik Field Ninilchik State Ellipse Sep [feet 10289.93 ACRMASD ACR [feet] Status 301.03 PASS Start MD [feet] Texaco Ninilchik #1 Positional Uncertainty Model Log Name/Comment Well bore 0.00 Photomechanical Magnetic (Standard) MSS <0-12903'> Texaco Ninilchik #1 #1 Offset Offiet TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) MD Reference: Datum #2 (RKB) . Clearance Report Closest Approach NS #3 Version #1 Page 9 of J3 BAKIR HUGHIS INTEQ C-C Clearance Distance Cutoff: 1500.00 feet Clearance Report Closest Approach NS #3 Version #1 Page 10 of 13 r&iíll BAKER HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION J -~~~-- - ~ ~ ~ ~~ ~ ---~--- "--- - - -- - -- -~~----- ~ ~ ~ -- - ~- - - ---~-- --------~-~----- ~~~ - ~_ ~ _~~__.7<_~__ ~ - -- -~ - ------- -~--~-~~-~^-~-~----~- Operator MARA THON Oil Company Slot ¡Slot #3 ·Area Cook Inlet, Alaska (Kenai Penninsula) Well ¡NS#3 ·Field Ninilchik Field Well bore NS#3 Facility Ninilchik State MWD <0-10346> Threshold Offset TVD Offset North [feet] [feet] 2532.19 799.91 2574.40 825.38 2619.19 851.60 2674.74 885.50 Offset East [feet] -2240.40 -2307.50 -2377.33 -2466.69 193.88 193.70 193.64 194.41 C-C Clear Dist [feet] 1353.74 1394.20 1435.14 1475.55 Ellipse Sep [feet] 1113.60 1146.48 1179.61 1210.03 ACR MASD AC [feet] Stat 240.14 PASS 247.72 PASS 255.53 PASS 265.51 PASS Offset WeIIbore: NS#1 MWD <0-10346> Start MD End MD Interval Start TVD End TVD Start NIS Start EIW End NIS End EIW [feet) [feet) [feet) [feet) [feet) [feet) [feet) [feet) [feet) 12.25in Open Hole 0.00 1745.00 1745.00 0.00 1479.08 -39.92 60.88 36.35 -139.65 8.5in Open Hole 1745.00 5580. 3835.00 1479.08 3514.0 36.35 -139. 382.44 -1064.73 6.125in Open Hole 5580.00 10346. 4766.00 3514.07 8103.72 382.44 -106 482.45 -1290.71 20in Conductor o. 87. 87.00 0.00 87.00 -39.92 -39.88 60.98 625in Casing Surface o. 1744.00 1744.00 0.00 1478.53 -39.92 36.25 -139.42 n Casing Intennediate O. 5554.00 5554.00 0.00 3495.71 -39.92 380.37 -1059.51 5in Liner 10346.0 ] 0346.00 0.00 8103.72 -39.92 482.45 -]290.7 0.00 N aviTrak (Magcorr] ) Log Name/Comment Wellbore <0-10346> NS#1 Offset MWD Offset TVD & local coordinates use Reference Wellpath settings (See WELLPATH DATUM on page 1 of this report) MD Reference: Glacier 1 (RKB) Clearance Report Closest Approach NS #3 Version #1 Page 11 of 13 BAKER HUGHES INTEQ String/Diameter Start MD Interval Start TVD End TVD Start N/S Start E/W End N/S EndE/W [feet) [feet) [feet) [feet) [feet) [feet) [feet) [feet) 12.25in Open Hole 0.00 1621.00 0.00 1332.19 -76.19 38.05 -148.17 -177.35 8.5in Open Hole 1621.0 4321.00 1332.19 3442. -148.17 -177.35 -515.33 -1266.11 7in Open Hole 5942.0 5558.0 3442.24 8311.5 -515.33 -1266.11 -678.37 -1755.17 20in Conductor 0.00 126.00 0.00 126.0 -76.19 -75.95 38.00 9.625in Casing Surface 0.00 1615.0 0.00 1329.32 -76.19 -147.63 -175.84 7in Casing Intermediate 0.00 5934.00 0.00 3438.21 -76.19 -514.63 -1264.13 4.5in Liner 0.00 11499.99 0.00 8311.56 -76.19 -678.37 -1755.17 . . Clearance Report Closest Approach NS #3 Version #1 Page 12 of 13 r&(l1I BAKER HUGHES INTEQ REFERENCE WELLPATH IDENTIFICATION ---~--~~ - ~ - - - --- ------ - ~~-- - -~-- ~-- -- -- ---- ~ - -------- -- ~- ~-~~----- ---- ~---- - ---- -- - --~---~- -~ ~ - -- - ~~ -- -- ---- _ _ __~ ~__J Operator MARATHON Oil Company Slot Slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well NS#3 Field Ninilchik Field Wellbore NS#3 Facility Ninilchik State 0.00 1560.00 2448.00 5882.00 Log Name/Comment WelIbore Start MD feet MWD <0-1560> MWD <1629-2448> WD <2573-5882> MWD <6010-11500'> NS#2 NS#2 NS#2 NS#2 MD REFERENCE - Offset WeIlbore: NS#2 Offset WeIlpath: MWD <0-11500'> MD Reference: Glacier 1 (21') (RKB) Offiet TVD & local coordinates use Reference Well path settings (See WELL? A TH DA TUM on page 1 of this report) . Clearance Report Closest Approach NS #3 Version #1 Page 13 of 13 r&iíll BAKER HUGHES INTEQ t MARA THON Oil Company Cook Inlet, Alaska (Kenai Penninsula) Ninilchik Field Ninilchik State Offset TVD [feet] 3495.75 232.93 C-C Clear Dist [feet] 21509.95 Ellipse Sep [feet] 21164.53 ACR MASD [feet] 345.42 0.00 Offset End MD [feet) 10115.00 Paxton#l Positional Uncertainty Model Log Name/Comment Wellbore NaviTrak (Magcorr1) MWD <0-10115> axton# 1 MD Reference: Nabors 129 (RKB) Wellpath: Offset TVD & local coordinates use Rejèrence Wellpath settings (See WELLPATH DATUM on page 1 o/this report) .