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Home My WebLink AboutCO 611• • Image Project (ar~ler 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 ins/1pection of the file. l~~ Order File Identifier Organizing (done) RES AN Color Items: ^ Greyscale Items: ^ Poor Quality Originals: ^ Other: ,,..e,aea iuiumiuuiuu DIGITAL DATA ^ Diskettes, No. ^ Other, No/Type: ~~ ~PS~a~ ~~d iil~miiiiiuuii OVERSIZED (Scannable) ^ Maps: ^ Other Items Scannable by a Large Scanner OVERSIZED (Non-Scannable) ^ Logs of various kinds: NOTES BY: ~ Maria J~ Date: ~.~ ~~~~ Project Proofing BY: Maria Date: ' ~ Q Scanning Preparation x 30 = BY: Maria ~ Date: ~~ Production Scanning ^ Other:: ~P viiiumiiiiYiiui ., mF + =TOTAL PAGES-~~ (Count does not include cover sheet) /s/ Stage 7 Page Count from Scanned File: ~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: I/ YES NO BY: Maria Date: ~~ ' ~ ~ /s/ ~~ ~~ Stage ~ If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: / Scanning is complete at this point unless rescanning is required. IIIIIIIIIIIIIIIIiI Rescanned IIIIIIIIIIIIII IIIII BY: Maria Date: /s~ Comments about this file: Quality Checked III II'lll III IIII III 10/6/2005 Orders File Cover Page.doc • INDEX CONSERVATION ORDER NO. 611 Milne Point Unit S-41A 1) October 31, 2008 BP Exploration (Alaska), Ines request for a Spacing Exception 5-41 A 2) November 14, 2008 BP Exploration (Alaska), Ines supplemental request for a Spacing Exception 5-41 A 3) November 26, 2008 Notice of Hearing, affidavit of mailing, a-mail list, bulk mailing list CONSERVATION ORDER NO. 611 c STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP Exploration (Alaska) Inc. for an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the proposed Milne Point Unit No. S-41A oil development well within the same governmental quarter section as, and within 1000 feet of, other wells in the Milne Point Unit that are producing from or capable of producing from the same pool. Docket Number: CO-08-34 Conservation Order No. 611 Milne Point Unit No. S-41A Oil Development Well January 26, 2009 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 26th day of January, 2009 BY DIRECTION OF THE COMMISSION t ~~~ ~ ~ \~ ~ Jody ~T. Co ~mbi~ ~ Spe~i~al A~S ta~,to the Commission • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP Exploration (Alaska) ) Inc. for an order granting an exception to the well ) Docket Number: CO-08-34 spacing requirements of 20 AAC 25.055(a)(3) to ) Conservation Order No. 611 allow drilling, completion, testing, and regular ) production of the proposed Milne Point Unit No. ) Milne Point Unit No. S-41A S-41A oil development well within the same ) Oil Development Well governmental quarter section as, and within 1000 ) feet of, other wells in the Milne Point Unit that are ) January 26, 2009 producing from or capable of producing from the ) same pool. ) IT APPEARING THAT: 1. BP Exploration (Alaska) Inc. (BPXA), by letter dated October 31, 2008 and received November 4, 2008 by the Alaska Oil and .Gas Conservation Commission (Commission), requests an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the proposed Milne Point Unit No. 5-41 A (MPU S-41 A) oil development well within the same governmental quarter section as, and within 1000 feet of, the MPU 5-37 and proposed MPU 5-43 wells within the Milne Point Unit, Ugnu Undefined Oil Pool, North Slope Borough, Alaska. 2. BPXA filed supplemental information with the Commission on November 14, 2008. 3. On November 26, 2008, pursuant to 20 AAC 25.540, the Commission published in the ANCHORAGE DAILY NEws notice of the opportunity for a public hearing on January 6, 2009. 4. No protest to the application or request for a hearing was received. 5. The public hearing was vacated on December 31, 2008. FINDINGS: 1. BPXA is the operator of the Milne Point Unit and will be the operator of the MPU S-41A well, which will be within the Milne Point Unit, Ugnu Undefined Oil Pool, North Slope Borough, Alaska. 2. The MPU S-41A well is proposed as a deviated oil development well with a surface location 3224 feet from the south line (FSL) and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.), and a projected bottom hole location 777' FSL, 1356' FEL of Section 7, T12N, R11E, U.M. 3. The notice of opportunity for a public hearing published in the ANCHORAGE DAILY NEws on November 26, 2008 inadvertently listed the surface location of MPU S-41A as 584' FSL and 518' FEL of Section 12, T12N, R10E, U.M. • • 4. The MPU S-41A well will open Ugnu Undefined Oil Pool reservoirs-that are, or may be, capable of production in the MPU 5-37 and proposed MPU S-43 wells-within the southwest quarter of Section 7, T12N, R11E, U.M. The anticipated Ugnu productive pool in MPU 5-37 and proposed MPU 5-43 and MPU S-41A will all lie in the same governmental quarter section. 5. The anticipated Ugnu productive pool in MPU S-41A will lie within 1000 feet of the Ugnu productive pool in the MPU 5-37 and proposed MPU S-43 wells: i. e., the MPU S-41A well will be drilled and completed within 1000 feet of another well (MPU 5-37 and proposed MPU 5-43) drilled to or possibly capable of producing from the same pool. 6. By certified mail, BPXA sent notice of the application for an order granting an exception to the well spacing requirements of 20 AAC 25.055 to all owners, landowners, and operators of all properties within 1000 feet of the anticipated productive pool of the proposed MPU S- 41A well. BPXA provided the Commission the notice, date of mailing, and addresses to which the notice was sent. 7. MPU S-41A is part of a multi-well pilot project that is intended to test different techniques to recover cold, viscous oil from the relatively shallow and unconsolidated reservoir sands of the Ugnu Undefined Oil Pool. It will be drilled to a location within the crest of a structural compartment to determine recovery rates for viscous Ugnu oil using a conventional horizontal wellbore. By modifying the spacing requirements for the pilot project wells, BPXA will be able to more accurately compare the MPU S-41A recovery rate with those of nearby wells that are testing an experimental method of recovering oil and sand from the Ugnu reservoirs. CONCLUSIONS: 1. The requested exceptions to 20 AAC 25.055(a)(3) are necessary to allow drilling, completion, testing, and regular production of the MPU S-41A oil development well. This well is needed to determine which production methods will promote more effective recovery of oil from the Ugnu Undefined Oil Pool. 2. The inadvertent publication (in the notice of opportunity for a public hearing) of the "FSL" surface location of the proposed MPU S-41A well is inconsequential: no reasonable likelihood exists that a person who did not comment or protest would have done so simply if the correct surface location had been published given the actual distances from the proposed well to the section, lease, and unit boundaries, and given the owners, landowners, and operators in the area of the proposed well. 3. Granting a spacing exception to allow drilling, completion, testing, and regular production of the MPU S-41A well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the Commission's authority under AS 31.05.030 and 20 AAC 25.055, the Commission approves BPXA's application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production Conservation Order No. 611 Effective January 26, 2009 Page 2 of 3 • • of the MPU S-41A well. BPXA may proceed with regular production as long as it complies with the terms of the Milne Point Unit agreement and all other legal requirements. ENTERED at Anchorage, Alaska, and dated January 26, 2009. Daniel T. Se unt, Jr., Chair and Gas Conservation Commission Cathy P. oerster, Commissioner Alaska it and Gas Conservation Commission RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appea[ are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Conservation Order No. 611 Effective January 26, 2009 Page 3 of 3 Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, January 27, 2009 9:08 AM Subject: CO 611 and CO 612 MPU Attachments: co611.pdf; co612.pdf BCC:Aaron Gluzman; caunderwood@marathonoil.com; Dale Hoffman; Fridiric Grenier; Gary Orr; Joe Longo; Lamont Frazer; Marc Kuck; Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; Sandra Lemke; Scott Nash; Steve Virant; Tom Gennings; Willem Vollenbrock; William Van Dyke; Woolf, Wendy C (DNR); Anna Raff; Barbara F Fullmer; bbritch; Bill Walker; Brad McKim; Brandon Gagnon; Brian Gillespie; Brit Lively; Bruce Webb; buonoje; Cammy Taylor; Cande.Brandow; carol Smyth; Cary Carrigan; Charles O'Donnell; Chris Gay; Cliff Posey; Dan Bross; dapa; Daryl J. Kleppin; David Brown; David Gorney; David Hall; David House; David L Boelens; David Steingreaber; ddonkel; Deborah Jones; doug_schultze; Eric Lidji ;Evan Harness; eyancy; foms2@mtaonline.net; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gregg Nady; gspfoff; Hank Alford; Harry Engel; Havelock, Brian E (DNR); jah; James Scherr; Janet D. Platt; jejones; Jerry McCutcheon; Jim Arlington; Jim White; Jim Winegarner; Joe Nicks; John Garing; John S. Haworth; John Spain; John Tower; John W Katz; johnny.aiken@north-slope.org; Jon Goltz; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; knelson@petroleumnews.com; Krissell Crandall; Kristin Dirks; Laura Silliphant; Lynnda Kahn; mail=akpratts@acsalaska.net; mail=fours@mtaonline.net; Marilyn Crockett; Mark Dalton; Mark Hanley; Mark Kovac; Mark P. Worcester; Marguerite kremer; Matt Rader; Melanie Brown; Mike Bill; Mike Jacobs; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; Nick W. Glover; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; Patty Alfaro; Paul Decker; Paul Winslow; Pierce, Sandra M (DNR); Randall Kanady; Randy L. Skillern; rcrotty; Rice, Cody J (DNR); rmclean; Rob McWhorter ; rob.g.dragnich@exxonmobil.com; Robert Campbell; Robert Province; Roger Belman; Rudy Brueggeman; Scott Cranswick; Shannon Donnelly; Sharmaine Copeland; Sondra Stewman; Sonja Frankllin; Stan Porhola; stanekj; Steve Lambert; Steve Moothart; Steven R. Rossberg; tablerk; Tamera Sheffield; Temple Davidson; Terrie Hubble; Tim Lawlor; Todd Durkee; Tony Hopfinger; trmjrl; Von Gemmingen, Scott E (DOR); Walter Featherly; Walter Quay; Wayne Rancier; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments:co611.pdf;co612.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 1/27/2009 Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 ~i ~ i i\i ~ !,~ ''. i ~3 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE /fj0_02914013 r1 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC Ste 100 333 W 7th Ave AGENCY CONTACT Jod Colombie DATE OF A.O. November 25, 2008 ° M , Anchorage, AK 99501 907-793-1238 PHONE PCN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 November 26, 2008 TS ENTIRETY ON THEEDATESESHOWN ELINES MUST BE PRINTED IN SPECIAL INSTRUCTIONS: Advertisement to be published wane-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE INTRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE ~ of 2 PP~GES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z Alts 0291 0 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID ~ 08 02140100 73451 2 REQUISITIONED BY: DIVISION 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 applications of BP Exploration (Alaska) Inc. for exception to the spacing requirements of 20 AAC 25.055(a)(3), for the drilling, completion and regular production of development oil wells within the same governmental quarter section as, and within 1000 feet of, wells capable of producing from the same interval. BP Exploration (Alaska) Inc. (BP), by letters received November 4 and November 14, 2008, requests the Alaska Oil and Gas Conservation Commission (Commission) issue orders for exceptions to the spacing requirements of 20 AAC 25.055(a)(3) to drill the Milne Point Unit No. S-41A and S-43 development oil wells in the Milne Point Unit, within the same governmental quarter section and within 1000 feet of wells capable of producing from the same interval. Milne Point Unit No. S-41A Surface Location: 584 feet from the south line (FSL) and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.) Bottomhole Location: 777 feet FSL and 1356 feet FEL, of Section 7, T12N, R11E, U.M. Milne Point Unit No. S-43 Surface Location: 3216 feet FSL and 547 feet FEL of Section 12, T12N, R10E, U.M. Bottomhole Location: 743 feet FSL and 4473 feet FEL, of Section 7, T12N, R11E, U.M. The Commission has tentatively scheduled a public hearing on this application for January 6, 2009 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the Commission no later than 4:30 p.m. on December 12, 2008. 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 hearing, call 793-1221 after December 22, 2008. In addition, written comments regarding this application may be submitted to the Alaska Oil and .Gas Conservation Commission, at 333 West 7`~' Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 26, 2008, except that, if a hearing is held, comments must be received no later than the conclusion of the January 6, 2009 hearing. If, because of a disability, special accommodations may be needed to comment or to attend the hearing, contact the Commission's Special Assistant, Jody Colombie, at 793-1221, no later than January 4, 2009. John K. Norman Commissioner (1 /2h/ZtN)8. Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchora,Qe, AK 99508 PRICE OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 581613 11/26/2008 02914014 STOF0330 $249.00 $249.00 $0.00 $0.00 $0.00 $249.00 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 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~ Su}~ribed and sworn to me before this date: ii ~ ~/ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: (C/~ 6'j ^/'`- r ~,. ;, ,. 1(Q~(fffff ``~~'~C3~'~f,:~~~ ~, ~. ~ ~ r r"• '~ ~~~~~~~~1*11)1 ?~'~~~, -. Notice of Public Iieat3ng ; *, STATE OF ALASKA Alaska OII and Gas Conservation CouuniasIon Re: The applications of BP Exploration (Alaskaj Inc ~' for exception to the spacing regmrements of 20 AAG 25.055(a)(3), focthe drilling, completion and regular production of development oil wells within the same governmental quarter section as, and within 1000 feet of; wells capable of producing from the same interval. BP Exploration (Alaskajlnc. (BP), by letters received November a and November 14, 2008, requests the Alaska Oil and Gas Conservation Commission (Commission) issue orders for exceptions to the spacingrequirements of 20 AAC 25.055(a)(3) Qq drill the Milne Point unit No. S-41A and 5-43 development oil wells inthe Milne Point Unit, within the sameggvernmental quarteYSection anii-within 1000 feet of wells capable of producing from the same interval Milne P0111t Unit No: 5-41A Surface Location: 584fieet from the south line (FSLJ and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.) BottomholeLOCation: 77Tfeet FSL and 1356 feet FEL, of Section 7, T12N, R11E, U.M. Milne Point Unit No. 5-43 Surface Location: 3216 feet FSL and 547 feet FEL9f SeCtipn.12, T12N, R10E, U.M. BottOmh0le Location: 7a3 feet FSL and 4473 feet FE4 Of Section 7, T12N, R11E, U.M. The Commission has tentatively scheduled a public hearing qn this application for Januaryb; 2009 at 9:00 a.m: at the Alaska Oil and Gas Conservati0q Eommission, aY333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively. scheduled hearing beheld, a written request must be filed with. the Commission no laterthan 4:30 p.m. onDecemberl2, 2008. If a request for a hearing is not timely filed, the Commission may consider the Issuance o€ an order without a hearing: To'learn if the Commission will hold the hearing, call 793-1221 after December 22, 2008.. In addition written comments regardingg this application maybe submitted to the Alaska Dil and Gas Conservation Commission; at 333 west 7th .Avenue,. suite Loos Anchorage, Alaska 99501: Comments must be tecemed no later than a:30 p.m: on December 26, 2008, except that, if a hearing is held; comments must be received. no later than the conclusion of the January 6, 2009 hearing. If, because of a disability; special accommodations may be needed to comment qr to attend the hearing, contact the ComCnission's Specia~ASSistant, Jody Colombie, at 793-1221, no later than January 4, 2009. John K: Norman Commissioner AO-02914013 Published: November 2Fi, 2008. • STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS NOTICE TO PUBLISHER I ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ ®_02914013 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /'1 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7th Avenue. Suite 100 ° Anch~rage_ AK 99S()1 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT I DATE OF A.O. PHONE IPCN 1711/1 /7.J -1LL1 DATES ADVERTISEMENT REQUIRED: November 26, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of division. AFFIDAVIT OF PU6LICATION REMINDER ss -NVOICE 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. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. 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 2008, and thereafter for consecutive days, the last publication appearing on the day of , 2008, 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 2008, Notary public for state of My commission expires • STATE OF ALASKA ~ NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A O_02914013 M ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. Novembe - 21, 2008 R 333 W 7th Ave, Ste 100 Jod Colombie ° Anchorage, AK 99501 PHONE PCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED' o Anchorage Daily News November 25, 2008 PO Box 149001 Arichora e AK 99514 g ~ THE MATERIAL BETWE THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON TH OATES SHOWN. SPECIAL INSTR TIONS: Adve isement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ie ^Other (Specify) SEE ATTAC ED l~' e -~ ~ ~ ~~ .~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ \ ~ ~ SEND INVOICE IN TRIP ATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ALLPAGES$ TO Anchora e AK 99501 2PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VE s 02910 FIN' AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ r' 1 08 02140100 73451 2 REQUISITIONED ~Y: I DIVISION APPROVAL: 02-902 (Rev. 3/94) ' ,f Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The applications of BP Exploration (Alaska) Inc. for exception to the spacing requirements of 20 AAC 25.055(a)(3), for the drilling, completion and regular production of development oil wells within the same governmental quarter section as, and within 1000 feet of, wells capable of producing from the same interval. BP Exploration (Alaska) Inc. (BP), by letters received November 4 and November 14, 2008, requests the Alaska Oil and Gas Conservation Commission (Commission) issue orders for exceptions to the spacing requirements of 20 AAC 25.055(a)(3) to drill the Milne Point Unit No. S-41A and S-43 development oil wells in the Milne Point Unit, within the same governmental quarter section and within 1000 feet of wells capable of producing from the same interval. Milne Point Unit No. S-41A Surface Location: 584 feet from the south line (FSL) and 518 feet from the east line (FEL) of Section 12, T12N, R10E, Umiat Meridian (U.M.) Bottomhole Location: 777 feet FSL and 1356 feet FEL, of Section 7, T12N, R11E, U.M. Milne Point Unit No. S-43 Surface Location: 3216 feet FSL and 547 feet FEL of Section 12, T12N, R10E, U.M. Bottomhole Location: 743 feet FSL and 4473 feet FEL, of Section 7, T12N, R11E, U.M. The Commission has tentatively scheduled a public hearing on this application for January 6, 2009 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`n Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the Commission no later than 4:30 p.m. on December 12, 2008. 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 hearing, call 793-1221 after December 22, 2008. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7`n Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 26, 2008, except that, if a hearing is held, comments must be received no later than the conclusion of the January 6, 2009 hearing. ~"~ If, because of a disability, special ccommodat ons may be needed to comment or to attend the hearing, contact the Co s pe ' A sistant, Jody Colombie, at 793-1221, no later than January 4, 2009. / ,1 ~ • STATE OF ALASKA I NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /~ 0_02914013 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ___ 30TTOM FOR INVOICE ADDRESS F AOGCC R 333 West 7`h Avenue. Suite 100 ° Anch~rage_ AK 995(11 M 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 AGENCY CONTACT ~ DATE OF A.O. PHONE IPCN 17\1/ 1 /7 7 -1GG1 DATES ADVERTISEMENT REQUIRED: November 25, 2008 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 United states of America State of __ division. AFFIDAVIT OF PUBLICATION REMINDER 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. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. 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 2008, and thereafter for consecutive days, the last publication appearing on the day of .2008, 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 2008, Notary public for state of My commission expires _ Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, November 21, 2008 3:24 PM Subject: MPU S-41A and S-43 Attachments: MPU S-41A and MPU S-43.pdf BCC:'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Aleutians East Borough'; 'Anna Raff ; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth'; 'Cary Carrigan'; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef ; 'gspfoff ; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'Matt Rader'; Melanie Brown; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments:MPU S-41A and MPU 5-43.pdf; Please disregard the public notice you recently received from me. Jody Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct tine (907) 276-7542 Fax 11/21/2008 Page 1 of 1 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, November 21, 2008 3:22 PM To: 'Ads, Legal' Subject: Please USE this one. Attachments: MPU S-41A and S-43 Notice of Hearing.doc; Ad Order ADN form.doc Thank you Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 11 /21 /2008 Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group Cartography GEPS 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 Ft. Worth, TX 76102-6298 Houston, TX 77056 George Vaught, Jr. Jerry Hodgden PO Box 13557 Hodgden Oil Company Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Mark Wedman Schlumberger Halliburton Drilling and Measurements 6900 Arctic Blvd. 2525 Gambell Street #400 Anchorage, AK 99502 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 Anchorage, AK 99503 Anchorage, AK 99507 Gordon Severson Jack Hakkila 3201 Westmar Cr. PO Box 190083 Anchorage, AK 99508-4336 Anchorage, AK 99519 James Gibbs Kenai National Wildlife Refuge PO Box 1597 Refuge Manager Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin PO Box 60868 PO Box 70131 Fairbanks, AK 99706 Fairbanks, AK 99707 North Slope Borough PO Box 69 Barrow, AK 99723 Cindi Walker 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 Ciri Land Department PO Box 93330 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 ~~ led /~~ ~/~d' ..LLj% ��Wz by • BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 995 1 9-661 2 (9071561-51 1 1 November 14, 2008 ~' : ~R ,~ Daniel Seamount, Chairman .r Alaska Oil & Gas Conservation Commission a' 333 West 7`" Avenue, Suite 100 ~ _ Anchorage, AK 99501 RE: Supplement to that certain Request for Well Spacing Exception - Milne Point Ugnu Well MPS-41A, dated October 31, 2008 Dear Chairman Seamount: BP Exploration (Alaska) Inc. ("BP") hereby supplements its application for an exception to the provisions of 20 AAC 27.055 for the drilling of MPU S-41A (the "Well"). This supplement is necessary to add the names of all Owners, landowners, and operators of all properties within 1,000 feet of the well which was an oversight in the original application. The following is a list of all owners, landowners and operators of any property within 1,000 ft of the portion of this oil well requiring a spacing exception. ExxonMobil Alaska Production, Inc. ConocoPhillips Alaska, Inc. Departmeent of Natural Resources, State of Alaska Chevron U.S.A. Inc. I have included a copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. If you have any questions or require any additional information, please contact the undersigned at 564-4097 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: CHECKLIST -SPACING EXCEPTION APPLICATION .PLAT SHOWING MPS-41A PLANNED LOCATION • • cc: Steve Davies, AOGCC Jeff Schrader, BP Chris West, BP State of Alaska 3`d District Subscribed and Sworn before me, a Notary Public, in and for the State of Alaska, on the 14`h day of November 2008, Erik J. Hulm, personally appeared before me and signed the above. (Seal) ~ ~ •~ ~~~ Joa . Kulish Notary My Commission expires: 10/18/2012 Commission Number: 111776 • CHECKLIST -SPACING EXCEPTION APPLICATION OPERATOR BP PROPERTY ID/LEASE FIELD/POOL WELL NAME MPU/Ugnu MPS-41 A ADL390110 VERTICAL ^ EXPLORATORY ^ GAS ^ DEVIATED ® DELINEATION ® OIL DEVELOPMENT ^ SURFACE LOCATION PRCjDUCTIVE INTERVALS (Top and Bottom) 584.13' FS L and 518.15' FE L, S12, T 12N, R 10E, Umiat M. 1236.14' FS L and 3857.65' FE L, S7, T 12N, R 11 E, Umiat M. 777.3' FS L and 1356.41' FE L, S7, T 12N, R 11 E, Umiat M. BOTTOM HOLE 777.3' FS L and 1356.41' FE L, S7, T 12N, R 11 E, Umiat M. Check applicable reason(s) for spacing exception: ^ 1 to drill a well for oil within 500 feet of a ro ert line ^ 2 to drill a well for as within 1500 feet of a ro ert line ® (3) to drill and complete more than one oil well in a governmental quarter section; or ® to drill and complete an oil well closer than 1000' to any well drilling to or ca able of roducin from the same ool 4 to drill and com lete more than one as well in a overnmental section;. or or to drill and complete a gas well closer than 3000' to any well drilling to or ca able of roducin from the same ool Does the application contain: x A brief ex lanation for wh the o erator has chosen to drill the s ecified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the x property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well re uirin the s acin exce tion that is drillin for as. The names of all owners, landowners, and operators of all properties within 1,000 feet of a well or x portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or ortion of the we11 re uirin the s acin exce tion that is drillin for as. x A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailin ,and the addresses to which the notice was sent. x An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correct) ortra s eminent and re wired data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the com )exit of ownershi within the notice area. ;' im~oiaza.agn b • ~ p BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.0. Box 196612 Anchorage, Alaska 99519-6612 (907)561-5111 November 14, 2008 Mr. Craig Haymes ExxonMobil Alaska Production, Inc. PO Box 196601 3301 C. St. Suite 400 Anchorage, AK 99519-6601 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-41A Dear Mr. Craig Haymes: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-41A (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is likely to be closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 well. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. The objectives of the program are to collect downhole data and test different recovery methods in multiple reservoir zones and multiple wells. MPS-37 was the first well test in the program, consisting of a short-term test of the cold heavy oil production with sand ("CHOPS") recovery technique. MPS-41A will be the second test well in the program and will test recovery from a conventional horizontal well. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. • • If you have any questions or require any additional information, please contact the undersi d at 564-4095 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-41A PLANNED LOCATION cc: Jeff Schrader, BP b ~ r •. p ~~,,~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (907)561-5111 November 14, 2008 Mr. Erec Isaacson ConocoPhillips Alaska, Inc. PO Box 100360 700 "G" Street Anchorage, AK 99510-0360 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-41A Dear Mr. Erec Isaacson: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-41A (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is likely to be closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 well. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. The objectives of the program are to collect downhole data and test different recovery methods in multiple reservoir zones and multiple wells. MPS-37 was the first well test in the program, consisting of a short-term test of the cold heavy oil production with sand ("CHOPS") recovery technique. MPS-41A will be the second test well i)1 the program and will test recovery from a conventional horizontal well. `1'he Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. • • If you have any questions or require any additional information, please contact the undersi at 564-4095 or Jeff Schrader at 564-5221. _--- Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-41A PLANNED LOCATION cc: Jeff Schrader, BP by ~ ~ BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 99519-6612 (9071561-51 1 1 November 14, 2008 -~ a,-., . r_ .~~ ~: Mr. Glenn C. Fredrick Chevron U.S.A. Inc. PO Box 196247 - Anchorage, AK 99519-6247 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-41A Dear Mr. Glenn C. Fredrick: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-41A (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is likely to be closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 well. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. The objectives of the program are to collect downhole data and test different recovery methods in multiple reservoir zones and multiple wells. MPS-37 was the first well test in the program, consisting of a short-term test of the cold heavy oil production with sand ("CHOPS") recovery technique. MPS-41A will be the second test well in the program and will test recovery from a conventional horizontal well. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. • • If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-41A PLANNED LOCATION cc: Jeff Schrader, BP • m o- .n 0 N f1J r~ O O O O m O O f~ 0 fiJ r~ f7 O f~ m r-~ O O N a 0 (~ (1J r-~ O O O m r7 0 m m o- tr a `~ `~ ..o ..n ~- o a ~ ~ N Postage $ f1J rL.l -- ~ ~ Certified Fee ~~ O O Postmark Return Receipt Fee O O (Endorsement Required) Here O O Restricted Delivery Fee ~~ O O (Endorsement Required) m m '~ ~ Total Postage & Fees ~~ r~ r~ ~ - o ~ o Sent To s. ~. ~,~oPti~~Qs A~~ _~~ s.. 5~~s.~o ~~ p p _ - _. . . Street, Apt. No.; - ~---~----~----- ~ ~-~ ~ ~ or PO Box No. t, 7~~ ~ d:Y•l ,~°e* .. ._..._ -------------°------.....-•----- ---- _ City, State, ZIP+4 c.~ o r K ~ - U :rr r. a a -- ~~ ru ru .. a- o- ,n ~ - -~ -~ ~~ 0 0 ~~ ~' ~' Postage $ f1J f1J ~~ ~ ~~ ~ Certified Fee ~ ~ Postmark Return Receipt Fee Here ~ ~ (Endorsement Required) ~~ O O ~~ Restricted Delivery Fee ~~ O O (Endorsement Required) m m ~ ~ Total Postage 8 Fees ~~ ~ ~ ~ ~ ent o p p Street, Apt. ~; f`- f"~ ~j or PD Box No. ~ ~Q ~ Z : SSe5~ 1~ ~ 4~ ~ Sa:x ............... . - . _. . 'ry, slate, ZAP+4 :rr rr. .~ ~- ~- ~ • ._ ~ ~ ,. .. - - -. .: = .~ ~ ~~ ~ - o 0 _ ~ ~.~. fl_I ~ flJ Postage $ ~ ~ Certified Fee ~ ~ , ~'~ ~ ~ ~ ~ Return Recei t Fee (Endorsement Required) Postmark Here ~ ~ Restricted Delivery Fee p p (Endorsement Required) ~~ m m ~~ ~ '~~ r~ ~ r-l Total Postage & Feea ~~' p O --r"=.. _,. --•-"'.. Y[ V~ tree? Apt N N N .. . o.; ...-°-•--••-- or PO Box No. O, ------ .: x ~9ro,~ --- .7 ' ~ -------° - ... , Stet , Z%P+4 ^--^- - :rr rr. ~~ by ~ ~ `~ "~` ~ ~ $" BP Exploration (Alaska) Inc. F~ - v 1.x '~ 900 East Benson Boulevard P.O. Box 196612 [ i' ,,~ Anchorage, Alaska 99519-6672 (907561-5111 p 1 ,.. j' October 31, 2008 John K. Norman, Commissioner Alaska Oil & Gas Conservation Commission 333 West 7"' Avenue, Suite 100 Anchorage, AK 99501 RE: Request for Well Spacing Exception -Milne Point Ugnu Well MPS-41A Dear Commissioner Norman: BP Exploration (Alaska) Inc. ("BP") is appling for an exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-41A (the "Well") and request approval to drill the well as described in this Spacing Exception Application. A brief explanation for why the operator has chosen to drill the specified location. The well is part of a multi-year appraisal of the Ugnu heavy oil reservoirs at the Milne Point S-Pad. The well consists of a pilot hole (MPS-41) and a horizontal sidetrack (MPS-41A). The objective of the pilot hole is to collect downhole logs and pvt fluid data. The objective of the horizontal sidetrack is to test the productivity of Ugnu heavy oil in a horizontal well. The location was selected based on oil column thickness and location within the crest of the structural compartment. The well has been permitted and is scheduled to be drilled in November of 2008. The completion and production test of the Well will commence in the summer of 2009 following tract operation approval. The names of all Owners, landowners, and operators of all properties within 1,000 feet of the well or portion of the well requiring the spacing exception that is drilled for oil or within 3,000 feet of a well or portion of a well that is drilled for gas. The following is a list of all owners, landowners and operators of any property within 1,000 ft of the portion of this oil well requiring a spacing exception: BPX (originator of this request) Department of Natural Resources, State of Alaska (mailed 10/31/08) A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. Copies of the notices to owners sent via certified mail, address and date of mailing are attached to this application. An affidavit by a person acquainted with the facts verifying that the facts are true and that the plat correctly portrays pertinent and required data. I am acquainted with the facts and can verify that the facts listed in this spacing exception request are true and that the enclosed plat correctly portrays pertinent and required data. If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Done at Anchorage, Alaska and dated October 31, 2008 r Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: CHECKLIST -SPACING EXCEPTION APPLICATION PLAT SHOWING MPS-41A PLANNED LOCATION cc: Steve Davies, AOGCC Jeff Schrader, BP Chris West, BP State of Alaska 3"' District Subscribed and Sworn before me, a Notary Public, in and for the State of Alaska, on the 3151 day of October 2008, Erik J. Hulm, personally appeared before me and signed the above. (Seal) ~~ o n M. Kulish otary My Commission expires: 10/18/2012 Commission Number: 111776 CHECKLIST -SPACING EXCEPTION APPLICATION OPERATOR BP PROPERTY ID/ LEASE FIELD/POOL WELL NAME MPU/Ugnu MPS-41 A ADL390110 VERTICAL ^ EXPLORATORY ^ GAS ^ DEVIATED ® DELINEATION ® OIL DEVELOPMENT ^ SURFACE LOCATION PRODUCTIVE INTERVALS (Top and Bottom) BOTTOM HOLE 584.13' FS L and 518.15' FE L, S12, T 12N, R 10E, Umiat M. 1236.14' FS L and 3857.65' FE L, S7, T 12N, R 11 E, Umiat M. 777.3' FS L and 1356.41' FE L, S7, T 12N, R 11 E, Umiat M. 777.3' FS L and 1356.41' FE L, S7, T 12N, R 11 E, Umiat M. Check applicable reason(s) for spacing exception: ^ 1 to drill a well for oil within 500 feet of a ro ert line ^ 2 to drill a well for as within 1500 feet of a ro ert line ® (3) to drill and complete more than one oil well in a governmental quarter section; or ® to drill and complete an oil well closer than 1000' to any well drilling to or ca able of roducin from the same ool ^ 4 to drill and com lete more than one as well in a overnmental section; or ^ or to drill and complete a gas well closer than 3000' to any well drilling to or ca able of roducin from the same ool Does the application contain: x A brief ex lanation for wh the o erator has chosen to drill the s ecified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the x property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well re uirin the s acin exce tion that is drillin for as. The names of all owners, landowners, and operators of all properties within 1,000 feet of a well or x portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or ortion of the well re uirin the s acin exce tion that is drillin for as. x A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailin ,and the addresses to which the notice was sent. x An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correct) ortra s ertinent and re wired data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the com )exit of ownershi within the notice area. DL 9010 ~ .~-F A 0110 -so H-O6 MPS 15 7-NE 2-NW MPS-33 MPS-33A Q MPS-33ALS MPS-33ASS 1 -N W O MPS-10 MPS-10LS ~4 MPS-37 MPS-10SS MPS-37 Ugnu MPS-26 ~ MPS-26LS MPS-26SS MPS-25 MPS-25L1 TOP UGNU M80 RESERVOIR 7-S W\ MPS-05L1 MPS-41A Top Productive ~~t W w O r Kr mTm I..L LL z;z :.~ r 7-SE \ MPS-41 A Bottom Hole MPS-10A ~.. MPS-10ALS ~ MPS-11 MPS-10ASS MPS-03 MPS-04L1 MPS-11 LS MPS-03L1 MPS-11 SS BP EXPLORATION (ALASKA) INC. I MILNE POINT UNIT MPS-41A LOCATION MAP O ~ DATE: SCALE: FIGURE: October 2008 1" =1000' ~ MPS-13 C7 MPS-13LS MPS-13S 12-J~= MPS-41 MPS-06 Pilot Ugnu MPS-23 MPS-i MPS-23L1 Im 15752a.di by ~ .~.. BP Exploration (Alaska) Inc. 900 East Benson Boulevard P.O. Box 196612 Anchorage, Alaska 995 1 9-661 2 (9071561-5111 October 31, 2008 Mr. Kevin Banks Division of Oil and Gas Departmeent of Natural Resources, State of Alaska 550 West 5`h Avenue, Suite 800 Anchorage, AK 99501 RE: Notification that BPX has submitted to the Alaska Oil and Gas Conservation Commission a Request for a Well Spacing Exception -Milne Point Ugnu well MPS-41A Dear Mr. Kevin Banks: BP Exploration (Alaska) Inc. ("BP") hereby gives notice that it has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a exception to the provisions of 20 AAC 25.055 for the drilling of MPU S-41A (the "Well") and request approval to drill the well as described in the Spacing Exception Application. The Well will require a spacing exception per the statewide rules of 20 AAC 25.055 (a)(3) because the Well opens the same productive interval as an existing well that falls within the same quarter governmental section and the Well is likely to be closer than 1000' of a well capable of producing from the same pool. As can be seen from the enclosed plat the reservoir section of the Well will be completed in the SW quarter section of Section 7, Township 12, Range 11, Umiat meridian and falls in the same quarter governmental section as the Milne Point S-37 well. BP is appraising the recovery of heavy oil from the Ugnu reservoirs in the Milne Point Unit. BP's initial efforts are focused on the Milne Point S-Pad area. The objectives of the program are to collect downhole data and test different recovery methods in multiple reservoir zones and multiple wells. MPS-37 was the first well test in the program, consisting of a short-term test of the cold heavy oil production with sand ("CHOPS") recovery technique. MPS-41A will be the second test well in the program and will test recovery from a conventional horizontal well. The Well will be drilled this year but will not be completed and produced until summer of 2009. Since the productive interval to be opened by the well fall within 1000 feet of a lease in which you are an owner, landowner, or operator you are being notified of this request for exception from the well spacing rule. If you have any questions or require any additional information, please contact the undersigned at 564-4095 or Jeff Schrader at 564-5221. Erik J. Hulm Heavy Oil Subsurface Team Leader BP Exploration (Alaska) Inc. Attachments: PLAT SHOWING MPS-41A PLANNED LOCATION cc: Jeff Schrader, BP Chris West, BP ~u i- DLg9010 ~ :~. ~, A 011 ~ S 6sE ~ ~ ~/ 7-NE m NW 1 -p MPS-33 ` ~ NW 7 MPS-33LS '` MPS-33SS ~ MPS-10 ~ -41 /41 A MPS-10LS \ O. ~ae_zae U C MPS-37 MPS-10SS MPS-33ASS MPS-13 C~ \ MPS-13LS MPS-13S MPS-41 MPS-O6 Pilot Ugnu MPS-23 MPS- MPS-23L1 MPS-37 Ugnu I MPS-04 v ~ ~ MPS-26 ~ MPS-26LS MPS-26SS MPS-25 MPS-25L1 • TOP UGNU M80 RESERVOIR W O ~- ,- ~- ~ ~ z z N N f- ; r- 7-S 7-SE ~_. MPS-41 A Bottom Hole MPS-10A MPS-10ALS ~ MPS-11 MPS-10ASS MPS-03 MPS-04L1 MPS-11 LS MPS-03L1 MPS-05L1 MPS-41A MPS-11SS Top P~rtodvuative gP EXPLORATION (ALASKA) INC. I MILNE POINT UNIT MPS-41A LOCATION MAP 0 ~ DATE: SCALE: FIGURE: October 2008 1" =1000' ~ Im15752a.dc ^ Complete items 1, 3. Also complete A. Signature item 4 if Restricted De every is desired. ^ Agent ^ Print your name and address on the reverse X ^ Addressee s0 that we can return the Card to you. B. Received by (Printed Name) C. Date of Delivery ^ Attach this card to the back of the mailpiece, or on the front if space permits. D. Is delivery address different from item 1? ^ Yes 1. Article Addressed to: If YES, enter delivery address below: ^ No ~~ 1 ~, t..\' f`~M"t'c•rLi`~~,c~rc:C'Sy~kAS~`~ 5 ~ U VJeS~- S ~ ~~ S~~ ~.~~ ~~ 3. Service Type ` A ~ ^ Certified Mail ~V`c-V'~ ~=~SC r I ~K `j~SU 1 ^ Registered ^ Insured Mail ^ Express Mail ^ Return Receipt for Merchandise ^ C.O.D. 4. Restricted Delivery? (Extra Fee) ^ Yes 2. Article Number (transfer from service label) PS Form 381 1, February 2004 Domestic Return Receipt 102595-02-M-1540 iiiiiiniiiiiiiiiiiiiiiiiiNiNiiiiiiiii 700 052 X014 9272 4168 700 X520 ~~14 9272 4168 y~N'~~b ~~~ y' S ~~r oS ~+ + ' 1 a.`r O ~ Cf ~ ;~ p ~ ~ V ° ~i~ m V ZJ v01, ;~ ~°~~ K J ~ ~ m ~~ , ~ C% ~ > G ~~ ~o !r iC °~. ;~ ; ~' C '~ ~~ ~. ~'~ v_ ~ mD m m o ^ o ~ m o m~ mi= y 3a 33 m ~o ~~ m m N ~~ 37~ p° ~~ Da T C C. T N m m m m m am am