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Home My WebLink AboutCO 581 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. e 0 5 <0 L Order File Identifier Organizing (done) o Two-sided 111111111111111111I o Rescan Needed 1111111111111111111 RES CAN ~color Items: .~reYSCale Items: \ ~~ o Poor Quality Originals: DIGITAL DATA OVERSIZED (Scannable) -¢Maps: D Other Items Scannable by a Large Scanner o Diskettes, No. D Other, NolType: OVERSIZED (Non-Scannable) o Other: D Logs of various kinds: NOTES: Date ~ j tj-j D7 Date ~lf J07 o Other:: BY: ~ /5/ W1f III 1111111111111111 Project Proofing BY: ~ /5/ lMP Scanning Preparation BY: = TOTAL PAGES !Jft£r (Count does not include cover she t) /5/ Date: + Production Scanning 11111111111111 11111 BY: Page Count from Scanned File: ~ (Count does ¡nCIUd~heet) Page Count Matches Number in Scanning Preparation: YES ~ Date: tol Ltl D7 Stage 1 If NO in stage 1, page(s) discrepancies were found: NO Stage 1 YES /s/ W1 F NO BY: Maria Date: /s/ 11111111111I111111I Scanning is complete at this point unless rescanning is required. ReScanned II ¡ 11111I11111/1111 BY: Maria Date: /5/ Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page.doc 1. 2. April 2, 2007 April 9, 2007 . INDEX Conservation order 581 Sterling Unit Sterling Unit 43-9X Well . Marathon's application for an spacing exception Notice of Hearing, bulk mail and Affidavit of Publication to Anchorage Daily News and Petroleum News . . 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)(2) and 20 AAC 25.055(a)(4) ) to provide for the drilling, completion, testing ) and regular production of the Sterling Unit 43-9X) well within 1500 feet of a Section line and within ) 3000 feet of a well capable of producing from the ) same interval. ) Conservation Order No. 581 Sterling Unit 43-9X Delineation Gas Well May 21, 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 21th day of May, 2007. BY DIRECTION OF THE COMMISSION . . 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)(2) and 20 AAC 25.055(a)(4) ) to provide for the drilling, completion, testing ) and regular production of the Sterling Unit 43-9X) well within 1500 feet of a Section line and within ) 3000 feet of a well capable of producing from the ) same interval. ) Conservation Order No. 581 Sterling Unit 43-9X Delineation Gas Well May 21,2007 IT APPEARING THAT: 1. Marathon Oil Company ("MOC"), by letter dated and received by the Alaska Oil and Gas Conservation Commission ("Commission") on April 2, 2007, has requested an order allowing an exception to the spacing requirements of20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to provide for the drilling, completion, testing and regular production of the Sterling Unit 43-9X gas delineation well within 1500 feet of a property line and 3000 feet of the SU 32-9 and the SU 43-9 wells, which are capable of producing from the same interval. 2. On April 2, 2007, pursuant to 20 AAC 25.540, the Commission published in the Anchorage Daily News notice of opportunity for public hearing in the Anchorage Daily News on May 17,2007. 3. No protests to the application or requests for hearing were received. 4. The public hearing was vacated on May 15,2007. FINDINGS: 1. MOC is the operator of the Sterling Unit. 2. Sterling Unit 43-9X is proposed as a deviated gas delineation well with a surface location 426 feet from the east line (FEL) and 2408 feet from the south line (FSL) of Section 9, T5N, RI0W, Seward Meridian ("S.M."), and a projected bottom hole location 1233 feet FEL, 4261 feet FSL, Section 9, T5N, RIOW, S.M. 3. The Sterling Unit 43-9X well will target gas reservoirs that can be discontinuous in the Sterling Formation. 4. The portion of U.S. Department of Interior, Cook Inlet Region, Inc. oil and gas lease A 028063 that the Sterling Unit 43-9X well will penetrate is within the Sterling B4 Participating Area of the Sterling Unit, Kenai Peninsula Borough. 5. MOC sent notice of the application for exception to the well spacing requirements of20 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 Sterling Unit 43-9X well. . . 6. The Sterling Unit (SU) 43-9X is within 3000 feet of the SU 32-9 and the SU 43-9 wells. CONCLUSIONS: 1. Exceptions to 20 AAC 25.055(a)(2) and 20 AAC 20.25.055(a)( 4) are necessary to allow drilling, com pletion, testing and regular production of the Sterling Unit 43-9X gas delineation well in order to evaluate gas reservoirs in the Sterling Formation in the Sterling B4 Participating Area. 2. The properties affected by this spacing exception are within the boundaries of the Sterling B4 Participating Area of the Sterling Unit. 3. Granting a spacing exception to allow drilling, completion, testing and regular production of the Sterling Unit 43-9X well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the Commissions authority under AS 31.05.030 and AS 31.05.100, the Commission hereby approves MOC's application for exception to the well spacing provisions of20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) for the purpose of drilling, completion, testing and regular production of the Sterling Unit 43-9X well. Because the properties affected by this spacing exception are wholly contained within the Sterling B4 Participating Area of the Sterling Unit, MOC proceed with regular production as long as it complies with the terms of the Sterling B4 Participa' g A ea agreement and applicable laws. DONE at Anchorage, Alaska and dated . N , Chairman Alaska Oil and Gas Conservation Commission Cat y P Foerster, Commissioner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23'd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the re uest is deemed denied (Le., loth da after the a lication for rehearin was filed). Conservation Order No. 581 Page 2 of2 Effective May 21, 2007 . . c0581 Subject: co581 From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Tue, 22 May 2007 16:08:41 -0800 To: undisclosed-recipients:; BCC: Cynthia B Mciver <bre~mciver@admin:state.ak.us>, Christi <c.hansen@iogcc. k.us>, Terrie Hubble <hubblet1@bp.com>, dra Stewman <StewmaSD@BP. , stanekj <st j@unocal.com>, trmjrl <trmJrl <jdar on@forestoi1. >, nels elson@petroleumn om>, <mark. n@hdrinc.com annon Donnelly <shannon. do W ster" <mark.p. cest 0 hillips.com>, Bob <bob@i <tj .state.ak. britch <b alaska:net>, mjn j O'Donnell <c donnell@veco.c dy L. S Jones" <JonesD P.com>, "Steven R. rg" <Ro S .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.co , "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@B m>, el <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, a F Fullmer <barbara.f.fullm con hillips.com>, doug_schultze <doug_schultze@xtoenerg. >, Hank Alford <hank.alford@exxonm bil.com>, Mark Kovac <yesnol@gci.net>, gspfoff <gspfoff¡ urora er.com>, <gregg.nady@shell.com>, Fred Steece <fred.steece@state.sd.us>, r <rcro @ch2m. es <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyan ancy@seal-tite.net>, "James M. Ruud" <james. .ruud@conocophillips.com>, Brit Lively <bl@mapalaska.com>, jah <jah@dnr.state. s>, buonoje <buonoje@ .com>, Mark Hanley <mark_hanley@anadarko.com>, Julie oule <julie_hou dnr.state.ak.us>, W Katz katz askadc.org>, tablerk <table unoca1.com rady <b @aoga.org>, Brian 10 beh@dnr.state.ak.us>, Jim White <jimw .rr.com>, "John S. aworth" <john.s.hawo exxo obi1.com>, marty <marty . l.com>, ghammon ammons@ao1.com>, rmc <rmclean@pobox.alaska.net>, mkm7200 <m O@aol.com>, B . lIe' <ifbmg@uaa.al edu>, David L Boelens <dboelens@aurorapower.com>, Tod kee d.durkee ad .com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIE etro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoi1.com>, Sharmaine Copeland <copelasv bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzem arathonoi1.com>, John Tower <John.Tower@eia.doe.gov>, Bill Fowler <Bill_Fow adarko.COM>, Scott Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs com>, James Scherr <james.scherr@mm > im Lawlor <Tim_Lawlor@ak.blm.gov>, Lynnda Kahn <Lynnda_K ov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocoph· ps.com>, crockett@aoga.org, Tamera Sheffield <sheffield@aoga.org>, Jon Goltz <Jon.Goltz@cono phillips.com>, Roger Belman <roger.belman@conocophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unoca1.com>, Gary Rogers <gary _rogers@revenue.state.ak.us>, Arthur Copoulos <Arthur _ Copoulos@dnr.state.ak.us>, Ken <klyons@otsint1.com>, Steve Lambert <salambert@unoca1.com>, Joe Nicks <news radiokenai.com>, Jerry McCu n <susit dronow@yahoo.com>, Bill Walker <bill-wwa@ak.n Paul Decker <paul_dec . state. .us>, Aleutians orough <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.sta ike <mi kb g>, Garland Robinson <gbrobinson@marathonoi1.com>, y T yl nr.sta. .us>, Thomas E Maunder <tom _ maunder@admin.state.ak.us>, Stephen F teve _ davies@admin.state.ak.us>, 10f2 5/22/20074:08 PM . . co581 Keith Wiles <kwiles@marathonoil.co Deanna Gamble <dgamble@kakivik.com>, James B Regg <jim_regg@admin.state.ak.us>, Cathe Foerster <cat rster@admin.state.ak.us>, gregory micallef <micallef@clearwire.net>, illiphant <laur ant@dnr.state.ak.us>, David Steingreaber <david.e. . greaber onmobil.com>, akpra csalaska.net, R Campbell <Rob pbell@re s.com>, ve Moothart <steve_moo @dnr.state.ak.u, nna Raff <anna.ra dowjones.com>, CHf Posey <cliff@posey.org>, Paul Bl <paul_bloom@ml.com>, Meghan Powell < .Powe srcene om>, TempI avid <temple_davidso .state.ak. >, Walter erly <W erly PattonBoggs.com>, Tricia Waggoner <twaggoner@nrginc.com>, John S jps@sta de.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>, carol smyth <carol.smyth@shell.com>, Arthur C Saltmarsh <art_saltmarsh@admin.state.ak.us>, Chris Gay <cdg athonoil.com>, foms@mtaonline.net, Rudy Brueggeman <rudy.bruegge international.gc.c Carrig d.com>, Sonja Frankllin <sfr . @bloom erg.net>, Mike Bill <Michael.Bill@b . 0 , Walter Quay <WQua che n.com>, "Alan Birnbaum <\"\"Alan J Birnbaum \">" <alan _ birnba @law.state.ak.us>, Randall Kanady <Randall.B.Kanady@conocophillips.com>, MJ Loveland <N1878@conocophillips.com>, Dave Roby <dave _roby@admin.state.ak.us> Jody Colombie <iody colombie(G¿admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration . . Cont t- Type: applicationlpdf . co581. pdf i . Content-Encoding: base64 20f2 5/22/2007 4:08 PM Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, 10 83702 Baker Oil Tools 4730 Business Park Blvd., #44 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 . . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 10 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 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 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 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 *2 . . STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02714026 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOlTOM FOR INVOICE AOORESS .. F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie Anril 9. 2007 0 Anchorage, AK 99501 PHONE PCN M 907-793-1238 (Q07) 7Q1 -1 ?? 1 DATES ADVERTISEMENT REQUIRED: T Anchorage Daily News April 11 , 2007 0 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal[gl D Display Classified DOther (Specify) SEE ATTACHED S.ENDINVOIC.E IN TRIPUCATE I AOGCC, 333 W. 7th Ave., Suite 100 TOTAL OF PAGE 1 OF ALL PAGES$ TO Anchoral!e. AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 YEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DlST UQ 1 05 02140100 73451 2 I , REQUISITIONED (': \14 1JÚfnAA!\ / ìD'V'S'ON APPROVAL: 71 . 02-902 ev. 3/94 V . . . . . . (R ) PubUsher/Ongmal COpies. Department FISCal, Department, Recemng I . . 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, completion, testing and regular production of the Sterling Unit 43-9X gas delineation well within 3,000 feet to a well capable of producing from the same pool. Marathon Oil Company ("MOC"), by letter dated April 2, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on April 2, 2007 has requested an order allowing an exception to the spacing requirements of 20 AAC 25.055 (aX4) to allow drilling, completion, testing and regular production of the Sterling Unit 43-9X gas delineation well within 3000 feet of the SU 32-9 and the SU 43-9 wells which are capable of producing from the same interval. The surface location of the proposed well is 426 feet from the east line and 2408 feet from the south line of Section 9, T5N, RI0W, S.M. The proposed bottomhole location is 1233 feet from the east line and 4261' from the south line, Section 9, T5N, RlOW, S.M. The Commission has tentatively scheduled a public hearing on this application for May 17,2007 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 April 30,2007. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after May 1,2007. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on May 14, 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 May 17, 2007 hearing. If you are a person with a disability who may need special modifications in order to comment or to attend the public hearin ase contact the Commission's Special Assistant Jady Colombie at 793-1221 before 15, 007 Published Date: Anchorage Daily News April 11, 2007 AO# 02714026 Published Date: Peninsula Clarion April 13, 2007 AO# 02714027 . Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 183716 04/11/2007 02714026 STOF0330 $215.80 $215.80 $0.00 $0.00 STATE OF ALASKA THIRD JUDICIAL DISTRICT Christine Clark, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the TIùrd Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn to me before this date: !Îr ,j Q j ~, J,lJO? Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska II ( {(ffr/: \.. "{ A. If;":"/" .' &:-... :f~~ 1ft. to;' , 'J..,.- ,f~'\-Y'~ ~ , ....- .... 'þ - p~ ¡~:~:J,v :~ ~ . ~~.,,'" ;~~. ,<'<;.... "::.~. f,,~..,...'O ;¡,~.. ~t~~;: :::.~- ., 4,' ~~.._ - 'f-,~·l ~ ~(v·,~ ....- q ,'l'f;;fVJ' iì\J,' ',\ -':::"'~"'l.\..·" ~., !~.f ,-~~ ....-è·~"".'v,\ ~"{~~.". ,,' .,'~~'''\\ ;"+.I./'1"!!,! ¡~"pì!"~'~\ '\ . '/; ¡ j IJJ ¡¡ ¡ ~ \ .·~ECEIVED APR 1 7 2007 l~laska Oil & Gas COliS. C"'T'''':;s;on Anchorage OTHER CHARGES #3 OTHER CHARGES #4 OTHER CHARGES #5 GRAND TOTAL $0.00 $0.00 $0.00 $215.80 Notice of ,Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation COlTlmission Re: The application of Marathon dil ~~mpanv for a sÞacing exception to allow the,dnlhng, coml?le- I' tion, testing and regula~ productl~n ,?f the Sterhng Unit 43-9X gas delineatoon well within 3,000 feet to a well capoble of producing from the sarne pool. Marathon Oil Comp~nY ("MaC"), bv le~ter dated April 2 2007 and received bv the AlasKa 011 and Ga.s Conser;'otion Commission ("Commis~op") on April 2 2007 has reauested an order ollowlng an excep- tionto the spacing reauirenwnts ,?f 20 AAÇ 25.055 (a)(4) to allow drilling, co",!pletlo.n, testing and regular production of the Sterling Unit 43-9X gas de- lineation well within 3000 feet Of the SU 32-~ and the SU 43-9 wells which are .capable of P!;Qduclng from the same interval. The surface location of fM pro- posed well is 426 feet frorn the east line and 2406 feet from the south li¡1e of Section 9, T5N, R1OW, S.M. The proposed bottomhole location is 1,233 feet .frorn the east line and 4261' from the south hne, Sectoon 9, T5N, RIOW, S.M. The Co~mission has tentotivelv scheduled a public hearing on .this applicotion for Mav 17,20~7 at 9:001, am at the Alaska Oil and Gas Con~ervatlonCom- rnission at 333 West 7th Avenue, SUite 100, Anchor- age, Alaska 99501. A 'person mav reauest t~a.t the tentatively scheduled hear.ing .be. held bv filing a I. written request with the. Comrnlsslon no later than I' 4:30 pm on April 30,2007. If a request for a hearing is not timelv filed, the Cornmission will consider the issuance of a!", ord!!r without a hearing. To learn if the COrnrnlsslon will hold the pUblic hearing, please call 793-1221 after Mav 1.2007. I n addition, a person movsubmit written ~omments regarding this application to the Alaska 011 and Gas Conservation.Commission at 333 West 7t,h Avenue, ,Suite 100, Anchorage, Alaska 99501. Wntten com- ments must be received no later thqn ~:30 p"'! on Mav 14 2007 except that if the Commission decides to hold' a public hearing, written protest Or com- ments must be received no later than the conclu- siOn of the Mav 17, 2007 heoring. If you are a. person with a disabilitv who rnay need speèÏal modifications in arder to comment or to at- tend the public hearing please contact. the Commission's SpeèÏol Assistant Jodv Colombie at 793,1221 beforè Mav 15,2007. Is!: John K. Norrnan Chairman AO# 02714026 Publish: Apritl1, 2007 . . ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS INVOICE MUST t3E IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02714026 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue. Suite 100 o AnchorHPe. AK 99501 M 907-793-1238 ~ Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT DATE OF A.O. JOdv r PHONE (907) 7Q1 -1?? 1 DATES ADVERTISEMENT REQUIRED: . . Anri1 Q ?OO? PCN April 11, 2007 THE MATERIAL BElWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION REMINDER United states of America State of ss 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 state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2007, 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 2007, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 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. and STATE OF ALASKA NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02714027 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY 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 ADril 9. 2007 0 Anchorage, AK. 99501 PHONE PCN M 907-793-1238 . (Q07\ 7Q1 _1 "" 1 DATES ADVERTISEMENT REQUIRED: T Peninsula Clarion April 13, 2007 0 P.O. Box 3009 Kenai, AK. 99611 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal[g D Display Classified DOther (Specify) SEE ATTACHED SEND INVOICE INTRIPLICATEAOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ~I TO Anchorage. AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DlST UQ 1 05 02140100 73451 2 3 4 r- . " , I REQUISITIONED f: ~ ((jJ? 1M! / IDIVISION APPROVAL: --' /i '-'-/ \./ V . . . 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, completion, testing and regular production of the Sterling Unit 43-9X gas delineation well within 3,000 feet to a well capable of producing from the same pool. Marathon Oil Company ("MOC"), by letter dated April 2, 2007 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on April 2, 2007 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 Sterling Unit 43-9X gas delineation well within 3000 feet of the SU 32-9 and the SU 43-9 wells which are capable of producing trom the same interval. The surface location of the proposed well is 426 feet trom the east line and 2408 feet trom the south line of Section 9, T5N, RI0W, S.M. The proposed bottomhole location is 1233 feet trom the east line and 4261' trom the south line, Section 9, T5N, RlOW, S.M. The Commission has tentatively scheduled a public hearing on this application for May 17,2007 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 April 30, 2007. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing.· To learn if the Commission will hold the public hearing, please call 793-1221 after May 1,2007. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on May 14, 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 May 17, 2007 hearing. If you are a person with a disability who may need special modifications in order to comment or to attend the public hearin ase contact the Commission's Special Assistant Jody Colombie at 793-1221 before 15, 007 Published Date: Anchorage Daily News April 11, 2007 AO# 02714026 Published Date: Peninsula Clarion April 13, 2007 AO# 02714027 PUBLISHER'S AFFIDAVIT } 55: . UNITED STATES OF AMERICA, STATE OF ALASKA :i 'ji :! 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 Public Hearing - Marathon Oil AO-2714027 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: April 13, 2007 x ¡) L /")./{)k R{lþ:{' .c_ SUBSCRIBED AND SWORN to me before 2007 ~f A~l j~~ OJ, ~ö Q~~ NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-08 UUUII~~ ~~..~"~.'\!'.S.".~.'~ ")~., "l< / 't~OIÂFly \ \.~.:~.i ~ . p--.---------------....---.. I Notice of PubHc ......... I I STATE OF ALASKA I : Alaska Oil and Gas Conservation COmmission . I I Re: The application of Marathon Oil Company for a : I spacing exception to allow the drilling, completion, I I testing and regular production of the Sterling Unit I I 43-9X gas delineation well within 3,000 feet to a I I well capable of producing from the same pool. I I Marathon ÒilCompany ("MOC"),byletterdatedAprill I 2,2001 and received by the AlaSka Oil and Gas I I ConservationCommissiQn ("Commission") on April 2, I : 2007 has requested an. order allowing an exception to : I the spacing requirements of20AAC 25.055 (a}(4) to I allow drilling, completion, testing and regular ProductiOn: lof the Sterling Unit 43-9X gas delineation well within I I 3000 feet of . the Su 32-9 and the SU 43-9 wells Which I I are capable of producing from the same interval~' The.1 I surface location of the proposed well is 426 feet from I I the east . line and 2408 fet:)t from the south line of I I Section 9, T5N,R10W, S.M. The proposed bottotnhole I I location is 1233 feetfrom the east line and 4261' from I the south line, Section 9, T5N, R10W, S.M. : The Commission has tentatively. scheduled a þUbIic I hearing on thisappl!cation for May 17,2007 at 9:00 am I at the Alaska Oil and Gas Conservation Comm.., at 1333 West 7th Avenue, Suite 100, Anchorage, Naska I 99501. A person may request that the t~ I scheduled nearing be held by filing a written r...-st I with the Commission no later than 4:30 pm on Apd 30, I 2007. I ' If a request for a hearing is not timely fIIect. the : Commission will consider the issuance of an order¡with- I lOut a hearing. To learn if the Commission will.holj:l the I I public hearing, please <;aIl793-1221 after MaY1,~OQ7'1 I In addition, a person may súbmit written com~is I I regarding this application to the Alaska Oil and! Gas I . Conservation. Commission at 333 vvest 7th. .,t\v~rue, I I Sufte fOO,. Anchorage, Alaska 99501. Written,fOm-1 I menta must be received no later than 4:30 pm on; May: 114, 2007 except that if the Commission decides toihold I I a pubIk: hearing, written protest or comments m~ be I received no later than the conclusion of the Mat 17,1 I 2007 hearing. .' I I If yotJ. are a person. with a disability who may jleed I I special mo. difications. in order to comlTlent or to ænd I I the public hearing, ple~e contact· the Commis on's I I ~.I Assistant Jody Colombie at 793-1221 foTe I 1..........- .. .¡ I I May 15, 2007.; I I ,John K. Norman ¡ I I. ChIdrman i ,I I PUBLISH: 41:13,2007 . 171311Ì874 I ._-----~----------~~~_. 02-902 (Rev. 3/94) Publisheginal Copies: Department Fiscal, Depa.eceiving AO.FRM STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS . NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02714027 AFFIDAVIT OF PUBLICATION (PART 2 OF TliIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue. Suite 100 o AnchoTape. AK 99')01 M 907-793-1238 AGENCY CONTACT DATE OF A.O. T . ~. . . Joc1V ( PHONE (907) 7Q1 -1?? 1 DATES ADVERTISEMENT REQUIRED: A nri1 Q 2007 PCN ¿ Peninsula Clarion PO Box 3009 Kenai, AK 99611 April 13, 2007 THE MATERIAL BElWEEN 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 2007, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2007, 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 2007, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Public Notice Sterling Unit 43-9X Spacing Exception . . Subject: Public Notice Sterling Unit 43-9X Spacing Exception From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Mon, 09 Apr 200715:42:33 -0800 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>, tnnjrl <tnnjrl@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>, ijr <ijr@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 <k.uacnews@kuac.org>, Gordon Pospisil <PospisG@BP.com>, "Francis S. Sommeri' <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> , 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 Ranc,ier <RANCIER@petro-canadà.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>, , 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>, 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 <klyons@otsintl.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>" Paul Decker <paul_decker@dnr.state.ak.us>, Aleutians East Borough <admin@aleutianseast.org>, Marquerite kremer <marguerite_1cremer@dnr.state.ak.us>, Mike Mason <m.ike@kbbi.org>, Garland Robinson <gbrobinson@marathonoil.com>, Cammy Taylor <cammy _ taylor@dnr.state.ak.us>, Thomas E Maunder lof2 4/9/2007 3:44 p~ Public Notice Sterling Unit 43-9X Spacing Exception . . <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 <jimJegg@admin.state.ak.us>, Catherine P Foerster <cathy_foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@clearwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobi1.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve_moothart@dnr.state.ak.us>, Anna Raff <anna.raff@dowjones.com>, Cliff Posey <cliff@posey.org>, Paul Bloom <paul_bloom@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 Winegarner <jimwinegarner@brooksrangepetro.com>, Matt Rader <matt _rader@dnr.state.ak.us>, carol smyth <caro1.smyth@shell.com>, Arthur C Saltmarsh <art_saltmarsh@admin.state.ak.us>, Chris Gay <cdgay@marathonoi1.com>, foms@mtaonline.net, Rudy Brueggeman <rudy.brueggemann@intemational.gc.ca>, Cary Carrigan <cary@kfqd.com>, Sonja Frankllin <sfranklin6@bloomberg.net>, Mike Bill <Michae1.Bill@bp.com>, Walter Quay <WQuay@chevron.com>, Cynthia B Mciver <bren_mciver@admin.state.ak.us>, "Alan Birnbaum <\"\"Alan J Birnbaum \">" <alan_birnbaum\"@law.state.ak.us> Jody Colombie <iody colombie((ì!admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: applicationlpdf Sterling Unit 43-9X Public Notice.pdf b 64 Content-Encoding: ase 20f2 4/9/20073:44 PM Public Notice . . Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Mon, 09 Apr 2007 15 :41 :21 -0800 To: denise.reece@peninsulaclarion.com Please publish on Friday 4/13/07. Jody Jody Colombie <iody colombie~admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: applicationlmsword AO Order Clarion form.doc Content-Encoding: base64 Content-Type: applicationlmsword Sterling 43-9X _ notice.doc Content-Encoding: base64 lof! 4/9/2007 3 :44 PM Public Notice . . Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Mon, 09 Apr 200715:39:58 -0800 To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish in April 11th. Jody Colombie <iody colombie(ll}admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration Content-Type: application/msword Ad Order ADN form.doc Content-Encoding: base64 Content-Type: application/pdf Sterling Unit 43-9X Public Notice.pdf C E do b 64 ontent- nco mg: ase 10f! 4/9/20073:44 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 Baker Oil Tools 4730 Business Park Blvd., #44 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 . . 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 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Schlumberger Drilling and Measurements 2525 Gambell Street #400 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 Bemie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 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 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 (( ~ 1/\ ~ 10.l \e" 00 P\l'H' ~D' 4f1 . . Alaska Asset Team Northern Business Unit (.M.') Marathon MARATHON Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907 -561-5311 Fax 907-565-3076 April 2, 2007 Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, #100 Anchorage, AK 99501-3539 RE: Location Exception Application Marathon Oil Company Sterling Unit, Sterling B4 P.A., Sterling Unit 43-9X Well Kenai Peninsula Borough, Alaska Dear Mr. Saltmarsh: Marathon Oil Company (Marathon) respectfully requests the following location exception for the referenced well: Surface Location: 426' FEL & 2408' FSL, Section 9, T5N, R1ûW, S.M. Target: Estimated Top of Sterling B4 Production Estimate @ 5263' TVD, 5769' MD 1233' FEL & 4261' FSL, Section 9, T5N, RlOW, S.M. Bottom Hole: Estimated @ 5645' TVD, 6156' MD 1233' FEL & 4261' FSL, Section 9, T5N, RlOW, S.M. The Sterling Unit 43-9X well targets gas on water in the Sterling B4 Sand. This sand has historically produced gas from this zone with water coning problems. New technology will be applied to minimize the water coning, thus increasing gas production from this zone. AOGCC Regulations require that Marathon apply for a location exception for the SU 43-9X well because the well intersects the targeted horizon (Sterling B4 Sand) within 3,000 feet of a welles) capable of producing from the same horizon and at a location closer than 1,500 feet from a section line within the undefined gas pool. The close offsets are SU 32-9 (1832 ft) and SU 43-9 (1982 ft) (see attached plat). These wells have produced from the B4 in the past and experienced problems with water coning. The SU 32-9 B4 perforations were abandoned and the well was recompleted to the Upper Beluga in 2004. The B4 perforations in SU 43-9 were converted to injection in 1998; these perforations will be abandoned with new perforations for disposal added to the water leg of the B4 prior to the drilling of SU 43-9X. The technology being applied at SU 43-9X requires a larger wellbore than that of SU 43-9 and thus a new well. It is critical to the success of the project that this new well be positioned as high on structure as possible. For these reasons, the specific target location has been chosen, which falls within a 3,000 foot radius of these two offset penetrations of the Sterling B4 gas zone. While the actual drainage area of a B4 well is large, and B4 completions in all three wells would interfere with each other, the SU 32-9 . . Location Exception Application Sterling Unit, Sterling B4 P.A., Sterling Unit 43-9X Well Kenai Peninsula Borough, Alaska April 2, 2007 Page 2 of3 and SU 43-9 wells are not being utilized as B4 producers. The need for these wells to exist in their current capacities is expected to extend well into the future. Attached is a plat shows the Sterling Unit 43-9X surface location and well paths from the Sterling pad. The Sterling B4 cut point is noted on each well path. Also attached is a pre-drill directional survey for the Sterling Unit 43-9X 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 Jennifer Enos at 713-296-3319. Sincerely, /c:d tJ YJ-/} Keith Wiles Senior Land Professional Attachments M. . . Location Exception Application Sterling Unit, Sterling B4 P.A., Sterling Unit 43-9X Well Kenai Peninsula Borough, Alaska April 2, 2007 Page 3 of3 Exhibit "A" Sterling Unit Sterling Unit 43-9X Location Notification List Name Line 2 Address City State Zip State of Alaska Department of Natural Attn: Kevin Banks, 550 W. ¡th Street, Ste. Anchorage AK 99501-3580 Resources Acting Director 800 Division of Oil & Gas U.S. Department of Interior Attn: Greg Noble 6881 Abbott Loop Anchorage AK 99507 Bureau of Land Manaç¡ement Road Cook Inlet Region, Inc. Attn: Kim PO Box 93330 Anchorage AK 99509-3330 Cunninç¡ham Kirkpatrick, Walkowski, 10900 NE 4th Street, Watkins Trust f/b/o Doris L. c/o Wellspring Group Suite 920 Bellevue WA 98004 Ervin Union Oil Company of California Attn: Kevin Tabler PO Box 196247 Anchorage AK 99519-6247 Chevron Alaska Marathon Oil Company Attn: Keith Wiles PO Box 196168 Anchoraae AK 99519-6163 il Company Slot: SU43-9X Well: SU43-9X Wellbore: SU43-9X Location: Field: Facilit Cook Inlet, Alaska (Kenai Penninsula) Sterling Gas Field Pad 43-9 8cale:T",eó;st3ncc --,;;;;c;- ;;;',1, TV",", T..Oo 0.000 -¡;¡¡¡ 0.00 000 KQ? 200.00 0.000 ,,¡CiS' "600 0.00 ~~ 000 EndofSu¡ld 1857.98 33.160 2.00 I 4$<3.53 8egin Angla Drop 384&.,6 I 33.160 ~ T425'.ii6 000 Efld of Drop 5506.13 0.000 336.457 5000.00 1853,36 2.QO 0_000 5600.00 1853.36 .g07.51 0.00 TD 615.13 0,000 5645,00 1853.36 -8()7,51 , 0.00 Plot ''''''''fen"" weUpalh ~ SU43-9X Version il1 True...e,ticaldeplhe"", ,er",,,nced10 GI"çlerlt1 (RKß) M"asured depth.. are ,""",enced to Glade, #1 (RKB) Glac"" #1 (RKB) \0 ",,,an sea I.."..j; 2-44.8 (.."t tne"ns"" 1e1l,,1 to M"d ¡i"" (FacHrty. Pad 43-+9): or"et c"o'dinat,,""'ein r"elr"te'encedtoS1o( -600 0 i ¿j l. 20in Conductor KOP 600 1200 1800 g 2400 .c Q. () 0 ëii 3000 () :e () > () :> 3600 ~ 4200 4800 5400 6000 6600 Oep\t\",,''';r1¡eM Created by: micl1wil,¡ on 3/21)12001 Scale 1 ¡nm 0= 300ft -1050 -900 Easting (ft) -600 -450 1502100 -300 -750 1350 1950 1600 1650 1500 Begin Angle Drop BGGM (1945.0 to 2008.0) Dip: 73.48° Field: 55464.8 nT Magne1k North is 19.32 degrees Ea$tofTf1.!e North (at 03129/07) rO w,.-",ct azimuth from Magnetic ro True add 19.32 degrees 2.00'/100ft 1200 1050 Z 0 ;:¡, ';J' 5' (Q 900 â 750 600 450 300 150 0 SU43-9X -150 End of Drop ·600 600 1200 t800 Vertical Section (ft) Azimuth 336.46" with reference 0.00 N, 0.00 E from wellhead 3000 2400 o M Location: Field Facilit Cook Inlet, Alaska (Kenai Penn insula) Sterling Gas Field Pad 43-9 N Oil Company Slot: SU43-9X Well: SU43-9X Wellbore: SU43-9X (RKB¡ De$ignComment Tie On Cooroj"ah.",aroinre"lr<!fare"cadIQ'Slo1 Sç¡;¡le 1 inch=50ft -200 -175 -150 Ta et TD -125 SU43-9X Profile Data OLS('f100ft) vs (It) 0,00 0,00 0,00 0.00 0,00 0.00 46653 155.5.10 2021.63 1.63 0,00 1.63 25 50 75 100 125 150250 225 200 175 150 125 100 75 Z Q 50 SO oj to â 25 0 -25 -50 -75 -100 -125 To correct a¡:imuth from Magnetiç ro True add 19_32 degrees Plot ,-.,/aranC0 wallpam 'S SU43-9X Van¡¡"" #-1 LOGaIE(ft) DLS("'100ft) VS (it) 0.00 0.00 OJJO 0.00 KOP 0.00 0.00 0.00 I 466.53 3841H6 l33,160 2.00 0.00 2021.63 TO 6151.13 i 0.000 335.457 0.00 2021.63 Easting (ft) -150 -500 -450 -300 -150 0 M il Company Slot: SU43-9X Well: SU43-9X Wellbore: SU43-9X RATH Location: Field Facìlit : Cook Inlet, Alaska (Kenai Penninsula) Sterling Gas Field Pad 43-9 Scale:T¡uedif.¡tan"" D<>pthS"",infee¡ Created : mich'wilgoo 3f3OI2007 Scale 1 inch = 300 ft 8GGM (194$.0 to 200B.O) Dip: 73.48" Field: 55484.8 nT Magn..tic North is 19.32 degrees East Qt True Norm (at 03{29107) To correct aZimuth from Magnetic ~o True add 19.3:2 degrees 1800 2100 1950 1650 1500 1350 z o ;:¡. :iT 5' c.a â MARATH Location: Field Facilit· Plot ¡¡¡¡",rane<! W th i~ SU43-9X Ve"òjon #1 TN" verti",,,,1 depths-ara r..æ..-anœd to Glacier #1 (RKS) Mea"",&::! dépths ara ,afarancad to Glaci.., #1 (!3.KB) Glacier#1 (RKB}to mean san le\l..1: 244.8 feet mean S/¡Ia lellel to Mud Iim> {Fa",,¡ity ~ Pad 43-$); 0 r....! Cooroinat""a,,,;nf,,,,t,,.re',,,,cedt,,SIo! Scal""Tn,Jedio;t',mce o..pth:s;."re;nfe<rt C"Nlted by' michw on 3J3OI2oo7 270 210' Cook Inlet, Alaska (Kenai Penninsula) Sterling Gas Field Pad 43-9 Slot: Well: Wellbore: pany SU43-9X SU43-9X 43-9X Desi nComment OLS ("¡100ft) Tie On 0.00 0.00 0.00 0.00 KOP , 20MO 336-457 200.00 0.00 0.00 0.00 End of Build , 1766.96 427,70 -186.35 2.00 I 3433.04 1425,66 2021.53 0.00 , 2021.63 0.000 336.457 564500 ..807,51 OJJO , 2021.63 Traveling Cylinder: Map North O' 140ft 120ft 100ft 80ft 60lt 4/JIr 20ft 4IJIt 80ft 30' 150' Sc,,¡e 1 ;nch"'50ft WeHpath Design Summary Report Wellpath: SU43-9X Version #1 Page 1 of2 Wellpath Design Summary Report Wellpath: SU43-9X Version #1 Page 2 of2 Planned Wellpath Report SU43-9X Version #1 Page 1 of 4 Planned Wellpath Report SU43-9X Version #1 Page 2 of 4 Planned Wellpath Report SU43-9X Version #1 Page 3 of 4 Planned Wellpath Report SU43-9X Version #1 Page 4 of 4 Clearance Report Closest Approach SU43-9X Version #1 Page 1 of 6 Clearance Report Closest Approach SU43-9X Version #1 Page 2 of6 '. Clearance Report Closest Approach SU43-9X Version #1 Page 3 of6 '&111 BAKER HUGHES INTEQ REFEIŒNCE WELLPATH IDENtiFICATION Operator MARATHON Oil Company Area Cook Inlet, Alaska (Kenai Penninsula) Field Sterling Gas Field Facility Pad 43-9 Slot Well Well bore SU43-9X SU43-9X SU43-9X CLEARANCE DATA - Offset Wellbore: SU32-9 Offset WelIpath: MWD <0-6858> Facility: Pad 43-9 Slot: slot #SU32-9 Well: SU32-9 Threshold Value=O.OO feet t = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing (feetl Sep Ifeet Status I feet) (feet) Ifeet) I feet) (feet Ifeet Ifeet Ifeet) 1°1 Ifeet 0.00 0.00 0.00 0.00 9.27 0.07 -101.75 -6.53 183.67 101.96 88.29 13.67 PASS 100.00t 100.00 0.00 0.00 110.07 100.87 -t01.29 -6.50 183.67 101.50 88.38 13.12 PASS 200.00 200.00 0.00 0.00 210.85 201.64 -100.03 -6.44 183.69 100.25 87.11 13.14 PASS 262.65t 262.65 0.63 -0.27 273.92 264.70 -98.89 -6.39 183.52 99.73 86.51 13.22 PASS 264.63t 264.63 0.67 -0.29 275.80 266.58 -98.85 -6.39 - 183.51 99.73 86.51 13.22 PASS I 300.00t 299.98 1.60 -0.70 311.31 302.09 -98.13 -6.37 183.261 99.92 86.68 13.23 PASS 1-±22:°0! 6.40 r---=2:"79 ----- -4022Õ ---_._---~ 1----- ------1------- ----.. ------ -- 399.84 411.46 -95.87 -6.37 182.01 102.36 88.88 13.48 PASS --- -- --- -.------ f--------- -------180.181~~7.96 ~-_..__._-- ------- -- 500.00t 499.45 14.39 -6.27 511.27 501.99 -93.54 -6.60 94.15 13.81 PASS 600.00t 598.70 25.56 -11.14 611.17 601.86 -91.06 -7.07 178.00 116.73 102.85 13.87 PASS 700.0°t 697.47 39.90 -17.38 710.56 701.20 -88.29 ·---7.78 175.72 128.60 114.32 14.28 PASS 800.00t 795.62 57.39 -25.01 809.50 800.10 -85.39 -8.67 173.47 143.78 129.06 14.72 PASS 900.00t 893.06 78.01 -33.99 908.03 898.58 -82.27 -9.59 171.35 162.23 147.04 15.19 PASS I QOO.OOt 989.64 10 I. 74 -44.33 1006.70 997.17 -78.99 -11.68 169.76 183.81 168.15 15.67 PASS 1100.00t 1085.27 128.54 -56.01 1106.17 1096.39 -75.23 -17.47 169.29 207.68 191.51 16.17 PASS 1200.00t 1179.82 158.39 -69.01 1204.91 1194.68 -71.03 -25.90 169.36 233.90 217.20 16.71 PASS 1300.00t 1273.17 191.24 -83.32 1304.40 1293.48 -65.80 -36.35 169.64 262.08 244.77 17.32 PASS 1400.00t 1365.21 227.06 -98.93 1402.37 1390.34 -60.10 -49.84 170.30 292.41 274.40 18.01 PASS 1500.00t 1455.84 265.80 -115.81 1499.29 1485.81 -53.96 -65.34 171.03 325.11 306.32 18.78 PASS 1600.00t 1544.94 307.42 -133.94 1593.45 1578.04 -47.92 -83.35 171. 90 360.45 340.77 19.68 PASS 1700.00t 1632.39 351.86 -153.31 1684.65 1666.63 -42.83 . -104.38 172.93 399.18 378.49 20.69 PASS ~ 800.00t 1718.11 399.08 -173.88 1 777.37 1755.23 -38.26 -131.24 174.43 440.97 418.93 22.05 PASS II 857.98 1766.96 427.70 -186.35 1831.98 1806.72 -35.46 -149.36 175.44 466.33 443.39 22.94 PASS 1900.00t 1802.14 448.77 -195.53 1868.80 1841.05 -33.57 -162.38 176.071 485.04 461.43 23.61 PASS C-C Clearance Distance Cutoff: 500.00 feet WELLPATH COMPOSITION Offset Wellbore: SU32-9 Offset Wellpath: MWD <0-6858> Start MD End MD PositionallJncertainty Model Log Name/Comment Well bore I feet) Ifeetl 0.00 6858.00 NaviTrak (Standard) MWD <0-6858> SU32-9 OFFSET WELLP A TH MD REFERENCE - Offset Wellbofe: SU32-9 Offset Well path: MWD <0-6858> MD Reference: Nabors #160 (RKB) Offset TVD & local coordinates use Reference Well path settings (See WELLP A TII DA TV M on page I of this report) ., Clearance Report Closest Approach SU43-9X Version #1 Page 4 of6 r&__ BAKER HUGHES INTEQ REFERENcE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Area Cook Inlet, Alaska (Kenai Penninsula) Field Sterling Gas Field Facility Pad 43-9 Slot Well Well bore SU43-9X SU43-9X SU43-9X CLEARANCE DATA - Offset Wellbore: SU41-15 Offset Wellpath: MWD <0-12600> Facility: Pad 43-9 Slot: slot #SU41-15 Well: SU41-15 Threshold Value=O.OO feet t = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing (feet I Sep (feetl Status feetl feet feet) I feet) Ifeetl feetl Ifeetl Ifeetl 1°1 I feet) -O~ÕõO:OO ---. -----_._----~--- ---"--. .~'--r--- 0.00 0.00 9.18 -0.02 -86.76 5.48 176.38 86.93 73.26 13.67 PASS 100.00t 100.00 0.00 0.00 108.91 99.71 -86.92 5.83 176.17 87.11 73.99 13.12 PASS 200.00 200.00 0.00 0.00 208.59 199.38 -87.35 6.77 175.57 87.62 74.47 13.15 PASS 300.00t 299.98 1.60 -0.70 307.93 298.71 -88.20 8.29 174.29 90.25 76.99 13.27 PASS 400.00t 399.84 6.40 -2.79 406.70 397.45 -90.02 9.16 172.93 97.19 83.64 13.55 PASS 500.00t 499.45 14.39 -6.27 505.18 495.901 -92.93 9.18 171.811 108.48 94.59 13.89 PASS ----- r----14.Tï --- 600.00t 598.70 25.56 -11.14 603.61 594.26 -96.43 9.02 170.62 123.72 109.61 PASS -- f-------- f---- ---. --------" -------- .,.---- -~~--- -.---- ¡-------- 700.00t 697.47 39.90 -17.38 701.71 692.29 -99.95 9.41 169.15 142.49 127.98 14.51 PASS 800.00t 795.62 57.39 -25.01 799.76 790.28 -103.24 10.53 167.53 164.61 149.67 14.93 PASS 900.00t ' ., 893.06 78.01 -33.99 896.89 887.36 -105.90 12.27 '.' ····'····165.88 189.73 174.34 15.39 PASS 1000.00t 989.64 10 I. 74 -44.33 992.94 983.37 -108.40 13.87 164.52 218.14 202.29 15.85 PASS 1100.00t 1085.27 128.54 -56.01 1087.76 1078.15 -110.76 15.44 163.38 249.84 233.51 16.33 PASS 1200.00t 1179.82 158.39 -69.01 1181.34 1171.67 -113.01 17.23 162.37 284.88 268.06 16.82 PASS 1300.00t 1273.17 191.24 -83.32 1273.45 1263.74 -115.18 19.13 161.51 323.23 305.90 17.33 PASS 1400.00t 1365.21 227.06 -98.93 1364.07 1354.32 -117.40 20.91 160.82 364.87 347.03 17.84 PASS 1500.00t 1455.84 265.80 -115.81 1453.57 1443.78 -119.66 22.52 160.26 409.71 391.33 18.38 PASS 1600.00t 1544.94 307.42 -133.94 1543.15 1533.32 -121.84 23.88 159.81 457.50 438.57 18.93 PASS C-C Clearance Distance Cutoff: 500.00 feet HOLE & CASING SECTIONS Offset Wellbore: SU41-15 Offset Wellpath: MWD <0-12600> String/Diameter Start MD End MD Interval Start TVD End TVD Start NIS Start E/W End NIS End E/W (feetl Ifeetl [feetl [feetj [feet I [feetl Ifeet [feetl [feetl 20in Conductor 0.00 58.00 58.00 -9.20 48.80 -52.89 3.34 -52.901 3.37 - 13.375in Casing Surface 0.00 2271.00 2271.00 -9.20 2261.08 -52.89 3.34 -66.60 10.33 9.625in Casing Intermediate 0.00 10312.00 10312.00 -9.20 8534.93 -52.89 3.34 -908.43 1161.12 7in Liner 10108.00 12590.00 2482.001 8378.10 10540.42 -885.93 1128.34 -1090.77 1425.32 WELLPATH COMPOSITION Offset Well bore: SU41-15 Offset Wellpath: MWD <0-12600> Start MD End MD PositionallJncertainty Model Log NamelComment I Wellbore [feet] [feet] 0.00 12600.00 NaviTrak (Standard) MWD <0 - 12600> I SU41-15 OFFSET WELLPATH MD REFERENCE - Offset Well bore: SU41-15 Offset Wellpath: MWD <0-12600> MD Reference: Nabor #160 (RKB) Offset TVD & local coordinates use Reference Well path settings (See WELL? A TN DA TV M on page I qf this report) " Clearance Report Closest Approach SU43-9X Version #1 Page50f6 '&111 BAKER HUGHES INTEQ REFERENCE WELLPAtH IDENttFICAtlON Operator MARATHON Oil Company Area Cook Inlet, Alaska (Kenai Penninsula) Field Sterling Gas Field Facility Pad 43-9 Slot Well Well bore SU43-9X SU43-9X SU43-9X CLEARANCE DATA - Offset Wellbore: SU43-9 Offset Well path: Totco IncI. Surveys <0-6202'> Facility: Pad 43-9 Slot: slot #SU43-9 Well: SU43-9 Threshold Value=O.OO feet t = interpolated/extrapolated station Ref Ref Ref Ref Offset Offset Offset Offset Horiz C-C Clear Dist Ellipse ACR MASD ACR MD TVD North East MD TVD North East Bearing Ifeetl Sep Ifeetl Status ~l (feetJ (feetl (feetl Ifeetl IfectJ Ifeetl (fcetJ 10J (feetl 0.00 0.00 O.õO 0.00 0.00 9.10 7.24 -89.52 274.62 - 90.27 77.12 13.15 PASS 100.00t 100.00 0.00 0.00 91.78 100.87 7.51 -88.76 274.84 89.09 75.23 13.86 PASS 200.00 200.00 0.00 0.00 191.61 200.70 7.82 -87.91 275.08 88.26 71.79 16.47 PASS 300.00t 299.98 1.60 -0.70 291.58 300.67 8.12 -87.09 274.32 86.65 67.05 19.60 PASS 400.00t 399.84 6.40 -2.79 '391.43 400.52 8.42 -86.28 ,', 271.39 83.51 60.69 22.82 PASS 500.00t 499.45 14.39 -6.27 491.04 500.12 8.71 -85.46 265.90 79.40 53.46 25.94 PASS I 600.00t 598.70 25.56 -11.14 590.21 599.29 9.00 -84.68 257.31 7539 -- 46.09 29.30 PASS r 700.00t ¡---. 73.32 40.44 32.88 PASS 697.47 39.90 -17.38 688.90 697.98 9.25 -83.99 245.29 708.0 I t 705.35 41.18 -17.94 696.75 705.83 9.27 -83.94 244.19 73.31 40.13 33.18 PASS 778.67t 774.75 53.40 -23.27 766.13 775.21 9.42 -83.511 233.87 74.59 38.77 35.82 PASS 800.00t 795.62 57.39 -25.01 786.99 796.06 9.47 -83.38 230.62 75.53 38.91 36.63 PASS -. 40.55 PASS 900.00t 893.06 78.01 -33.99 884.35 893.42 9.66 -82.86 215.56 84.03 43.47 1000.00t 989.64 101.74 -44.33 980.87 989.94 9.82 -82.42 202.51 99.50 54.96 44.54 PASS 1100.00t 1085.27 128.54 -56.01 1076.48 1085.55 9.96 -82.03 192.38 121.40 72.90 48.50 PASS 1200.00t 1179.82 " 158.39 -69.01 1171.02 1180.09 10.10 " -81.64 ',' 184.87 ' " 148.82 96.46 52.36 PASS 1300.00t 1273.17 191.24 -83.32 1264.36 1273.43 10.24 -81.26 179.35 181.0 I 124.87 56.14 PASS 1400.00t 1365.21 227.06 -98.93 1356.47 1365.54 10.39 -80.85 175.23 217.42 157.71 59.72 PASS 1500.00t 1455.84 265.80 -115.81 1447.22 1456.28 10.60 -80.26 172.07 257.66 194.29 63.37 PASS 1600.00t t544.94 307.42 -133.94 1536.57 1545.63 10.93 -79.38 169.57 301.47 220.74 80.73 PASS 1700.00t 1632.39 351.86 -153.31 1624.27 1633.32 11.44 -77.981 ,', 167.52 348.66 246.52 102.14 PASS 1800.00t 1718.11 399.08 -173.88 1710.16 1719.18 12.13 -76.09 165.82 399.12 276.00 123.11 PASS 1857.98 1766.96 427.70 -186.35 1759.08 1768.08 12.60 -74.78 164.96f 429.83 294.78 135.05 PASS 1900.00t 1802.14 448.77 -195.53 1794.29 1803.28 12.98 -73.73 164.39 452.49 308.87 143.62 PASS C-C Clearance Distance Cutoff: 500.00 feet HOLE & CASING SECTIONS Offset Wellbore: SU43-9 Offset Wellpath: Totco Incl. Surveys <0-6202'> String/Diameter Start MD End MD Interval Start TVD End TVD Start NIS Start E/W End NIS End E/W (feetl I feet) IfeetJ Ifeetl Ifeetl (feetl (feetl (feetl (feetl 12.25in Open Hole 0.00 1272.00 1272.00 9.10 1281.071 4.4] -54.57 5.33 -52.04 8.625in Casing Surface 0.00 ] 272.00 ] 272.00 9.]0 ] 281.07 4.4] -54.57 5.33 -52.04 7.875in Open Ho]e 0.00 6202.00 6202.00 9.10 62] 0.08 4.4] -54.57 13.62 -29.28 5.5in Casing Production 0.00 6202.00 6202.00 9.]0 6210.08 4.4\ -54.57 \3.62 -29.28 WELLPATH COMPOSITION Offset Wellbore: SU43-9 Offset Wellpath: Totco Incl. Surveys <0-6202'> Start MD End MD Positional Uncertainty Model Log Name/Comment Wellbore I feet) Ifectl 0.00 6202.00 Alaska, Drift Indicator Surveys Totco Surveys <0-6202'> SU43-9 , , Clearance Report Closest Approach SU43-9X Version #1 Page 6 of6 '&_11 BAKER HUGHES INTEQ REFERENCE WELLPAtH It>ENTlFICATIÖN Operator MARATHON Oil Company Area Cook Inlet, Alaska (Kenai Penninsula) Field Sterling Gas Field Facility Pad 43-9 Slot Well Wellbore SU43-9X SU43-9X SU43-9X OFFSET WELLPATH MD REFERENCE- Offset Well bore: SU43-9 Offset Wellpath: Totco Incl. Surveys <0-6202'> MD Reference: Santa Fe Drilling(t963) (RKB) Offset TVD & local coordinates use Reference Wellpath settings (See W ELLP A Tff DA TU M on page I of this report) . . 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 of21 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 Sterling Unit 43-9X well with a surface location in Section 9-T5N-RIOW and bottom hole location in Section 9-T5N, RIOW, S.M. 5. That on or about April 2, 2007 MOC employees mailed notice of the Sterling Unit 43-9X 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 Sterling Unit 43-9X well, has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. L/þ/07 Date --------------------------------------------------------------------------------------------- STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) This certifies that on AAR I L g , 2007, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared Christine D. Gay of Marathon Oil Company, known to me (or proved to me on the basis of satisfactory evidence) 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. he day and year in this certificate first above written. u ô . . AFFIDA VIT Comes now Jennifer S. Enos, and first being duly swom 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 two years I have worked as a geologist for Marathon Oil Company (MOC) on the Alaska Asset Team. My responsibilities have included geology of the Cook Inlet/Kenai Peninsula Areas. 4. That I have been responsible for the geological work related to a Location Exception application for the Marathon Sterling Unit 43-9X well with a surface location in Section 9-T5N-RlOW and bottom hole location in Section 9-T5N, RlOW, S.M. 5. That the Sterling Unit 43-9X well targets gas in the Sterling B4 Sand. 6. That AOGCC Regulations require that Marathon apply for a location exception for the SU 43-9X well because the well intersects the targeted horizon (Sterling B4 Sand) within 3,000 feet of a welles) capable of producing from the same horizon and at a location closer than 1500 feet from a section line within the undefined gas pool. The close offsets are SU 32-9 (1832 ft) and SU 43-9 (1982 ft) (see attached plat). These wells have produced from the B4 in the past and experienced problems with water coning. The SU 32-9 B4 perforations were abandoned and the well was recompleted to the Upper Beluga in 2004. The B4 perforations in SU 43-9 were converted to injection in 1998; these perforations will be abandoned with new perforations for disposal added to the water leg of the B4 prior to the drilling of SU 43-9X. The technology being applied at SU 43- 9X requires a larger wellbore than that of SU 43-9 and thus a new well. It is critical to the success of the project that this new well be positioned as high on structure as possible. For these reasons, the specific target location has been chosen, which falls within a 3,000 foot radius of these two offset penetrations of the Sterling B4 gas zone. While the actual drainage area of a B4 well is large, and B4 completions in all three wells would interfere with each other, the SU 32-9 and SU 43-9 wells are not being utilized as B4 producers. The need for these wells to exist in their current capacities is expected to extend well into the future. Further affiant sayeth not. <::_c-- . ~,L~_ s (affiant) ~Ac·~,3:J/2Ø7 Date --------------------------------------------------------------------------------------------- STATE OF TEXAS ) )ss. COUNTY OF HARRIS ) This certifies that on 1JjA,Rß/I.1ò , 2007, before me, a notary public in and for the State of Texas, duly commissioned and sworn, personally appeared Jennifer S. Enos 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. KATRINA D. BAKER Notary Public, State of Texas Commission Expires 07-17-2007 ¿¡ Y PUBLIC in and for Texas My Commission Expires: 1-/~4Ø~ , WITNESS my hand and official seal the day and year in this certifica · e 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 April 2, 2007 Marathon Oil Company Attn: Keith Wiles PO Box 196168 Anchorage, AK 99519-6163 RE: AOGCC Notice of Application Application to for Location Exception Sterling Unit Well #SU 43-9X Marathon Oil Company Sterling Unit Dear Mr. Wiles: Please find enclosed a copy of Marathon Oil Company's (Marathon) Application for a location exception related to Sterling Unit Well #SU 43-9X. By this application, Marathon seeks AOGCC approval to drill, complete and produce a well on other than the prescribed spacing pattern. Marathon employees are happy to discuss this application with any interested parties. Should you wish to discuss this application with Marathon's representative, please call Keith Wiles at 907-565-3044. If you wish to speak to a representative of the AOGCC, please call Art Saltmarsh at 907-793-1230. Sincerely, /r;:a tJ~ Keith Wiles Senior Land Professional Enclosures . . Alaska Asset Team Northern Business Unit Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907 -561-5311 Fax 907-565-3076 April 2, 2007 Mr. Art Saltmarsh ~ Alaska Oil and Gas Conservation Commission 333 West 7fu Avenue, #100 <ð) Anchorage, AK 99501-3539 ~~ RE: Location Exception Application ~~ Marathon Oil Company Sterling Unit, Sterling B4 P.A., Sterling It 43-9X Well Kenai Peninsula Borough, Alaska Dear Mr. Saltmarsh: Marathon Oil Company (Marathon) respectfully requests the following location exception for the referenced well: Surface Location: 426' FEL & 2408' FSL, Section 9, T5N, RlOW, S.M. Target: Estimated Top of Sterling B4 Production Estimate @ 5263' TVD, 5769' MD 1233' FEL & 4261' FSL, Section 9, T5N, R10W, S.M. Bottom Hole: Estimated @ 5645' TVD, 6156' MD 1233' FEL & 4261' FSL, Section 9, T5N, R10W, S.M. The S~l Unit 43-9X well targets gas on water in the Sterling B4 Sand. This sand has hl·st oduced gas from this zone with water coning problems. New technology will be a 0 m imize the water coning, thus increasing gas production from this zone. ~ Regulations require that Marathon apply for a location exception for the SU 43-9X well tP ~use the welt intersects the targeted horizon (Sterling B4 Sand) within 3,000 feet of a welt( s) ycapable of producing from the same horizon and at a location closer than 1,500 feet from a section line within the undefined gas pool. The close offsets are SU 32-9 (1832 ft) and SU 43-9 (1982 ft) (see attached plat). These wells have produced from the B4 in the past and experienced problems with water coning. The SU 32-9 B4 perforations were abandoned and the well was recompleted to the Upper Beluga in 2004. The B4 perforations in SU 43-9 were converted to injection in 1998; these perforations will be abandoned with new perforations for disposal added to the water leg of the B4 prior to the drilling of SU 43-9X. The technology being applied at SU 43-9X requires a larger wellbore than that of SU 43-9 and thus a new well. It is critical to the success of the project that this new well be positioned as high on structure as possible. For these reasons, the specific target location has been chosen, which falls within a 3,000 foot radius of these two offset penetrations of the Sterling B4 gas zone. While the actual drainage area of a B4 well is large, and B4 completions in all three wells would interfere with each other, the SU 32-9 . . Location Exception Application Sterling Unit, Sterling B4 P.A., Sterling Unit 43-9X Well Kenai Peninsula Borough, Alaska April 2, 2007 Page 2 of 3 and SU 43-9 wells are not being utilized as B4 producers. The need for these wells to exist in their current capacities is expected to extend well into the future. Attached is a plat shows the Sterling Unit 43-9X surface location and well paths from the Sterling pad. The Sterling B4 cut point is noted on each well path. Also attached is a pre-drill directional survey for the Sterling Unit 43-9X well. Furthennore, the parties listed on Exhibit "A" are entitled to notice of this application and have been duly notified. Should you have any questions ~d to land or ownership issues, please contact Keith Wiles at 907-565-3044, or for quest~~g the technical aspects of this application, please contact Jennifer Enos at 713-296-3 ~ ì{;e ~ Keith Wiles Senior Land Professional Attachments ~~ ý~ . ;,.1-, . . Location Exception Application Sterling Unit, Sterling B4 P.A., Sterling Unit 43-9X Well Kenai Peninsula Borough, Alaska April 2, 2007 Page 3 of 3 Exhibit "A" Sterling Unit Sterling Unit 43-9X Location Notification List Name Line 2 Address City State Zip , State of Alaska Q I Department of Natural (5 Attn: Kevin Banks, 550 W. yth Street, Ste. Anchorage AK 99501-3580 Resources Acting Director 800 Division of Oil & s U.S. Department r Attn: Greg Noble . 6881 Abbott Loop Anchorage AK 99507 Bureau of Land Mana ement Road Cook Inlet Region, Inc. Attn: Kim PO Box 93330 Anchorage AK 99509-3330 Cunningham Kirkpatrick, Walkowski, 110900 NE 4th Street, Watkins Trust flblo Doris L. cia Wellspring Group Suite 920 Bellevue WA ' 98004 Ervin Union Oil Company of I California Attn: Kevin Tabler PO Box 196247 Anchorage AK 99519-6247 Chevron Alaska Marathon Oil Com an Attn: Keith Wiles PO Box 196168 Anchora e AK 99519-6163 ~~ ~Q 'I'}' If¡ '* 503130N 1510500W Tr. 33 -- ADL-01836 Marathon Oil Co State of Alaska Cook Inlet Region, Inc. Chevron/Unoca! MARATHON OIL COMPANY STERLING UNIT SU 43-9X Spacing Exception Application March 2007