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Home My WebLink AboutCO 622~ • Image Project 4rd~r File Cav~r ~'~ge XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original fite, may be scanned during a speci~l rescan activity or are viewabte by direct inspection of ihe file. 0 ~ Order File Identifier Organizing ~do~e~ ^ Two-sided III II~III II III I) III ^ Rescan Needed III II~III II II II~ II) RESCAN DIGITAL DATA OVERStZED (Scannable) ^ Color Items: ^ Diskettes, No. ~ Maps: ^ Greyscale Items: 0 Other, No/Type: ^ Other Items Scannable by a Large Scanner ^ Poor Quality Originals: OVERSIZED (Non-Scannable) ^ Other: ^ Logs of various kinds: NOTES: ^ Other:: ~ BY: Maria Date: Q /s/ ~ Projec# Proofing III (I'III I) (II I~ II) BY: Maria Date: ~ ~S~ Scanning Preparation x 30 = + = TOTAL PAGES ~~ BY: Maria ~ a (Count does not i~dude cover sheet) _ _ Date: ~ ~ ~'~ ~ Production Scanning Stage 1 Page Count from Scanned File: ~~ (Count does include cover sheet) Page Count Matches Number in Scanning Preparatian: t/ YES NO BY: Maria Date: Q~ p D /s/ . ~ °~ 9 ~P Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY~ Maria Date: ~S~ Scanning is complete at this point unless rescanning is required. III II II'I III II I I III ReScanned 111 II~III IIIII (I ~II BY: Maria Date: Comments about this file: ls/ Quality Checked ~~~ ~I'III IIIII~I I~~ 10/62005 Orders File Cover Page.doc ~ ~ INDEX CONSERVATION ORDER NO. 622 Moquawkie #1 1. June 1, 2009 Aurora Gas request for Spacing Exception Moquawkie #5 (Well Logs held confidential) 2. June 15, 2009 Notice of Hearing ADN and Notice of Hearing June 17, 2009 Peninsula Clarion, Affidavit of Publications, e-mail list, bulk mailing list 3. July 3, 2009 Request from public member to change hearing times and AOGCC response Conservation Order No. 622 ~ • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Aurora Gas, LLC for an order ) Docket Number: CO-09-22 ganting an exception to the well spacing requirements ) Conservation Order No. 622 of 20 AAC 25.055(a)(4) to allow drilling and ) completion of the proposed Moquawkie No. 5 gas ) Moquawkie No. 5 development well within the same governmental ) Gas Development Well section as, and within 3000 feet of, other wells that are ) Kenai Peninsula Borough, Alaska producing from or may be capable of producing from ) the same pool. ) August 3, 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 3rd day of August, 2009. BY DIRECTION OF THE COMMISSION J. Colombie ial Assistant to the Commission • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Ataska 99501 Re: THE APPLICATION OF Aurora Gas, LLC for an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(4) to allow drilling and completion of the proposed Moquawkie No. 5 gas development well within the same governmental section as, and within 3000 feet of, other wells that are producing from or may be capable of producing from the same pool. IT APPEARING THAT: Docket Number: CO-09-22 Conservation Order No. 622 Moquawkie No. 5 Gas Development Well Kenai Peninsula Borough, Alaska August 3, 2009 Aurora Gas, LLC (Aurora), by letter received June 2, 2009 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 to allow drilling, perfarating, completing, testing and production of the proposed Moquawkie No. 5 gas development well within the same governmental section as, and within 3000 feet of, other wells that are, ar may be, capable of producing from the same pool (i.e., the Moquawkie Undefined Gas Pool), which is in the Kenai Peninsula Borough, Alaska. 2. On June 15, 2009, pursuant to 20 AAC 25.540, the Commission published in the ANCxot~nGE DA~t,Y NEws notice of the opportunity for a public hearing on July 21, 2009. 3. On June 17, 2009, pursuant to 20 AAC 25.540, the Commission published in the PEtv~lsuLA CL~~oN notice of the opportunity for a public hearing on July 21, 2009. 4. No protest to the application was received. No request for a hearing was received other than a request, received on July 2, 2009, that the time of the hearing be changed. On July 14, 2009, the Commission denied that request. 5. The public hearing was vacated on July 17, 2009. FINDINGS: l. Aurora is the operator of the proposed Moquawkie No. 5 well, which will be within the Moquawkie Undefined Gas Pool, Kenai Peninsula Borough, Alaska. 2. The proposed Moquawkie No. 5 well will be an onshore, vertical gas development well with surface and bottomhole locations 1,169 feet from the north line and 1,268 feet from the west line of Section 1, T11N, R12W, Seward Meridian (S.M.). 3. The proposed Moquawkie No. 5 well may open Moquawkie Undefined Gas Pool reservoirs from which other wells within Section 1, Tl1N, R12W, S.M. are, or may be, capable of producing (i.e., the active Moquawkie No. 3 gas production well, the inactive Moquawkie No. 1 gas producton well, the inactive Moquawkie No. 4 gas production well, and the inactive Simpco Moquawkie No. 2 gas exploration well). 4. The Moquawkie No. 5 well is proposed to be drilled and completed within 3000 feet of other wells (i.e., the active Moquawkie No. 3 gas production well, the inactive Moyuawkie No. 1 gas producton well, the inactive Moquawkie No. 4 gas production well, and the inactive Simpco Moquawkie No. 1 gas exploration well) drilled to, and that are, or may be, capable of producing from, the same pool (i.e., the Moquawkie Undefined Gas Pool). i • 5. Aurora is the only owner and operator, and Cook Inlet Region, Inc. is the only landowner within 3000 feet of the proposed well and in the same governmental section. By certified mail, Aurora sent notice of the application to Cook Inlet Region, Inc., the landowner for Section 1, T11N, R12W, S.M. and all properties within 3000 feet of the proposed Moquawkie No. 5 well. Aurora provided the Commission the notice, date of mailing, and address to which the notice was sent. 6. The Moquawkie No. 5 well is designed to recover Moquawkie Undefined Gas Pool reserves that are not otherwise accessible because they are fault-separated from, or are not perforated within, the nearby active and inactive wells. CONCLUSIONS: 1. An exception to 20 AAC 25.055(a)(4) is necessary to allow the drilling and completion of the Moquawkie No. 5 gas development well. This well is needed to recover Moquawkie Undefined Gas Pool reserves that are not accessible with existing wells. 2. Granting a spacing exception to allow the drilling and completion of the Moquawkie No. 5 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners, operators and landowners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the Commission's authority under AS 31.05.030 and 20 AAC 25.055, the Commission approves Aurora's application for an order granting an exception to the well spacing requirements of 20 AAC 25.055(a)(4) to allow the drilling and completion of the Moquawkie No. 5 well. Aurora may proceed with regular production as long as it complies with the terms of all legal requirements. ENTERED at Anchorage, Alaska, and dated August 3, 2009. ,~ ~~ ~ v~ ~~~ ~~~~~ ~~~~ ~ Daniel T. Seamount, Jr., Chair Alaska Oil an Ja Conservation Commission ., . r~~ ~- ~ ,a`~4~"r~ ~~~, ~C- ~ ~ ;~ ~ , , - _~.°~ ~ : _ , ~ r , `< ~. ~ ~ ~ ,._ ~ P "~..yy~..'~, 3` ~ ~.`t ~~s ''57~1 ~ l~' ;•sfi ~'14,.~~«.r ~"~ Gas Colrse~ion Commission ~rster, Commissioner and Gas Conservation Commission Conservation Order No. 622 Effective August 3, 2009 Page 2 of 3 ~ • 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 arder 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 appeal 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. 622 Effective August 3, 2009 Page 3 of 3 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, August 04, 2009 11:54 AM Subject: C0622 Spacing Exception Moquawkie #5 Attachments: co622.pdf ~~ co622.pdf (1 MB) cc: 'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff ; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C(DNR); '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'; 'Charles O'Donnell'; Chris Gay; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Gorney'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; Deborah Jones; Decker, Paul L(DNR); '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'; 'jah'; 'Janet D. PIatY; 'jejones'; 'Jerry Brady'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; Joseph Darrigo; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Elowe'; 'Laura Silliphant'; 'mail=akpratts@acsalaska.net'; 'mail=foms@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marquerite kremer'; Melanie Brown; 'Michael Nelson'; '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 Winslow'; Pierce, Sandra M(JPO); Rader, Matthew W(DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Province'; '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'; Teresa Imm; 'Terrie Hubble'; Thompson, Nan G(DNR); 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjr1'; Von Gemmingen, Scott E (DOR); 'Walter Featherly'; Walter Quay; Aubert, Winton G(DOA); Birnbaum, Alan J(LAW); Crisp, John H(DOA); Darlene Ramirez; 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); Mclver, 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); Schwartz, Guy L(DOA); Seamount, Dan T(DOA) Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99509 (907)793-122? (phone) (907)276-7542 (fax) ~ ~ 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 Ofl Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schiumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Bivd. 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 Bivd., #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 ~~d~ a~~~ ~3 ~ - _ °°`~-~ ~ ~ ~ ~ ~ ~ ~ t __ ~ ~~ _.; ~ ~~. p ~~ ~ ~ ~ ,~~ gj, ~ ~ h ~°~ fd ~ ~ ~ ANN N ~.~~ ~ ~ jQ~ @h ('k ABj~,~ C k~v ~ e b Cg~ "(~ E g f ~ R i ~ ~ ~ ~ ~~. ~sy P ! B ~ G~,~ ~o6E'. L-.~` . 4~ ~~~ D~.~`~ ~.~e R~. i.e'~ ~~.,~ ~~ 0~ ~ ~ CO1~T5ERQATIOI~T COMDIIS51Or1T . F~`nf ~ ~~ SARAH PALIN, GOVERNOR a rr ' 333 W. 7thAVENUE, SUITE 100 ~ ANCHORAGE, AIASKA 99501-3539 F PHONE (907) 279-1433 ~ FAX (907) 276-7542 July 14, 2009 Dana L. Olson HC-35 Box 5438 Wasilla, AK 99564 Re: Denial of Request To Change Hearing Times Dear Ms. Olson: The Alaska Oil and Gas Conservation Commission (AOGCC) received your hand-delivered letter, dated July 3, 2009, requesting that the AOGCC change the times of hearings currently set for 9:00 a.m. on July 23 2009 and August 11, 2009. You seek to reschedule the hearings for the afternoon. The only basis for your request to change the times is "so I can attend." The AOGCC is obligated to assure adequate notice of its public hearings and has met that obligation with regard to the hearings at issue here. The AOGCC does not have an additional obligation to schedule its public meetings at times convenient to those interested in attending. As a result, your request to change the hearing times is denied. If you have any questions regarding this letter, contact Ms. Jody Colombie, the Special Assistant to the Commission, at 907-793-1221 or jody.colombie@alaska.gov. Sincerely, Daniel T. Seamount Jr. Chair ~ -~ ~~ ~~ ~ ~ ~ ~ f~ ~f / ) - ~ ~ ~ ~ ~~ /,+8 ~ ~ ~`c--~ ~'1 / ~i"~ ~ Lei / ~ ~j T ~l n;~l~ 1 //'lJ_~" ` ~ J / . J ~ ~ ~~;,~'z~ r~s' ~~~,.~a ~~'.~~ .~.~~a ~ ~'? ~~.~ ~ ~. ' ~ ,~ 1-. tr ~~r ~~ ~`',~l'~~~-i~ .~c.~ ~ ~ .~~~ ~ ~~ c,~ ~' ~. ...,-- l / /'~'~-/ ~/~A/v'/~' 1~~~., . ~ ,~s. ~~;, _ r ~~ ~ f ~,~.~~- ~,~~.,~r.,~ ,~;~~ s G ~ ~.l ~1 ~` ~., ~ ~ f G s'z~' ~l C~-7-~ ~ ~ ,~~ r~ C i ~~ /~l ~.-~ / ~ '~ ~~°~ ~' ~' ~ ~~`~'` ~~ ~~es~ ~~ ~~~ <. , ~ ~ ` G~r /",l ~ a ~ ~~ ~ ~.~~--~~ ~ ,~~ ,z~ % ,~1.. ~~ sy~+ , yc: ~ tt ~ ~t'~ ~~ `,~ ,~ % c ~ ~:~ ;. /~ ~_ ~ ~',~~~~. ~ /~ ~' ~' t' ~y ~ ~ - ~~~~ ~+ 1~ ~ ,f,a 0 ~ ~ /~ ~'/ ~ d~ ~_e.._- , ~~v - / ~ ~ C~ ~ ,~.r ! d~ ~ t S~ ~,~, y? /° 'n..'r> ~- ~:~ ~ ~ t~' m.~ , r. 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Aurora Gas, LLC (Aurora), by a letter received June 2, 2009 by the Alaska Oil and Gas Conservation Commission (Commission), requests an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill the Moquawkie No. 5 vertical gas development well within the same governmental section as, and within 3,000 feet of, wells capable of producing from the same pool. The proposed surface and bottomhole locations of the Moquawkie No. 5 well are the same: 1,169 feet from the north line and 1,268 feet from the west line of Section 1, T11N, R12W, Seward Meridian (S.M.). A public hearing on the application is tentatively scheduled for July 21, 2009, at 9:00 a.m. at the Commission: 333 West 7th Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on July 6, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing, To learn if the Commission will hold a hearing, call 907-793- 1221 after July 9, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on July 17, 2009, except that, if a hearing is held, comments must be received by the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, ca11907-793-1221 by July 20, 2009. Daniel T. Seamount, Jr. Chair I . ~ NOTICE OF PROPOSED CHANGES IN THE REGULATIONS OF THE ALASKA OIL AND GAS CONSERVATION COMMISSION The Alaska Oil and Gas Conservation Commission (AOGCC) proposes to adopt regulation changes to Title 20 of the Alaska Administrative Code, dealing with annular disposal of drilling waste. Specifically, AOGCC proposes to fully revise (i.e., repeal and readopt) 20 AAC 25.080 as follows: 1. clarify the requirements (e.g., by reorganizing them) regarding, and clarify AOGCC's authority to regulate (e.g., by deleting subsection (i)), the annular disposal of drilling waste; 2. modify the set of information that must be submitted with an application for authorization; 3. modify the set of limitations on and conditions of authorization, such as regarding disposal operations and reporting; and 4. add a provision for requesting variances and waivers. Written comments on the proposed regulation changes, including the potential costs of compliance, may be submitted to the AOGCC at 333 West 7th Ave., Suite 100, Anchorage, AK 99501. The comments must be received by 5:00 p.m. on June 30, 2009. Written and/or oral comments may be submitted at a hearing to be held on July 23, 2009, at 333 West 7th Ave., Suite 100, Anchorage, Alaska. The hearing will be held from 9:00 a.m. to 11:00 a.m. and might be extended to accommodate those present before 9:30 a.m. who did not have an opportunity to comment. If, because of a disability, a special accommodation is needed to participate in this process, please contact the Commission's Special Assistant, Jody Colombie, at 907-793-1221; 333 West 7`n Ave., Suite 100, Anchorage, AK 99501; or jodv.colombien,alaska. 7~ov. Ms. Colombie must be contacted by July 20, 2009, at 5:00 p.m. to ensure that necessary accommodations can be provided. The proposed reguiation changes are available at www.ao~cc.alaska.gov or by contacting Ms. Colombie at the phone number, physical address, or e-mail address above. After the public comment period ends, the AOGCC will, without notice, adopt these or other provisions dealing with the same subject or decide to take no action. The language of the proposed and final regulations may be different. YOU SHOULD COMMENT DURING THE TIME ALLOWED IF YOUR INTERESTS COULD BE AFFECTED. Written comments received are subject to public inspection. Statutory Authority: AS 31.05.030; AS 31.05.040 Statutes Being Implemented, Interpreted, or Made Specific: AS 31.05.030; AS 31.05.040 Fiscal Information: The proposed regulation changes are not expected to require an increased appropriation. DATE: 5 ' ~ '~ Cathy . Foerster Com issioner ~ ~ ADDITIONAL REGULATIONS NOTICE INFORMATION (AS 44.62.190(d)) 1. Adopting agency: Alaska Oil and Gas Conservation Commission. 2. General subject of regulations: annular disposal of drilling waste requirements. 3. Citation of regulations: 20 AAC 25.080. 4. Reason for the proposed action: update annular disposal of drilling waste regulations. 5. Program category and BRU affected: Alaska Oil and Gas Conservation Commission. 6. Cost of implementation to the state agency: zero. 7. The name of the contact person for the regulations: Name: Cathy P. Foerster Title: Commissioner Address: 333 W. 7th Avenue, Suite 100, Anchorage, AK 99501 Telephone: (907) 793-1221 E-mail: jody.colombie@alaska.gov 8. The origin of the proposed action: agency staff. 9. Date: May 20, 2009. 10. Prepared by: fj ~~C.y-C Jod . Col ie Alaska Oil and Gas Conservation Commission (907) 793-1221 - . ~ Register , 200_ MISCELLANEOUS BOARDS Draft OS/20/09 20 AAC 25.080 is repealed and readopted to read: 20 AAC 25.080. Annular disposal of drilling waste (a) Drilling waste, as defined in (i) of this section, may not be disposed through the annular space of a well unless authorized by the commission under this section. The operator of a well for which a permit to drill has been issued by the commission may request authorization to dispose of drilling waste through the well's annular space by filing an Annular Disposal Application (Form 10-403AD), including all the information required under (e) of this section. (b) Unless otherwise authorized, annular disposal of drilling waste will be limited to (1) 35,000 barrels through the annular space of a single well; (2) wastes generated by drilling operations on the same drill pad or platform as the disposal annulus; (3) 90 days of actual disposal within a one-year approval period; and (4) a one-year period beginning on the date of approval of the Annular Disposal Application. (c) Drilling waste must not (1) migrate from the approved disposal interval; (2) impair the mechanical integrity of any well; or (3) damage a producing or potentially producing formation or impair the recovery of oil or gas. (d) Drilling waste may not be disposed of into any freshwater unless the commission finds that the freshwater has a total dissolved solids content of more than 3,000 mg/1 and is not reasonably expected to serve as a source of drinking water for human consumption; the commission may, in its discretion, provide 15-days notice and the opportunity for a pubiic hearing before making the finding. (e) An application for authorization under this section must include or reference (i. e., if the information is on file with the coznmission) the following information: (1) a schematic of the well proposed to receive the drilling waste; (2) lists and plats identifying (A) all wells and well branches that penetrate the disposal interval within a one-quarter mile radius of the casing shoe of the disposal annulus; the well paths of all wells 1 ~ Re ister 200 MISCELLANEOUS B~ARDS g , - Draft OS/20/09 and well branches must be shown on the plat, and the planar distances from all wells and well branches to the casing shoe of the disposal annulus must be provided; (B) all publicly recorded water wells within a one-mile radius of the surface location of the well that would receive the drilling waste; and (C) all operators and surface owners within a one-quarter mile radius of the casing shoe of the disposal annulus; (3) the measured and true vertical depths at the base of any freshwater aquifer(s) and permafrost; (4) an assessment of shallow seismic information, where available, with an interpretation of faults and other anomalies within a one-quarter mile radius of the casing shoe of the disposal annulus; (5) a stratigraphic description of and well log(s) across the disposal interval showing the drilling waste receiving and confining intervals; (6) a description of the drilling waste, including its composition and well source, and the identification of any waste that falls within (i)(3) of this section; (7) the estimated density of the drilling waste slurry; (8) the anticipated maximum pressure at the surface and at the casing shoe during the disposal operations; the calculations showing how the casing shoe pressure value was determined must be provided; (9) information demonstrating that the inner and outer casing strings have sufficient collapse and burst strength to withstand the maximum anticipated pressure of disposal operations; (10) information demonstrating that the shoe of the outer casing (A) is set below the base of permafrost and any freshwater aquifer with a total dissolved solids content of less than 3,000 mg/l; and (B) is adequately cemented to provide isolation; the information required under this sub-section must include (i) casing and cementing records for both casings forming the annulus; (ii) casing and cementing records for all wells that penetrate the disposal interval within a one-quarter mile radius of the casing shoe; 2 • ~ Register , 200_ MISCELLANEOUS BOARDS Draft OS/20/09 (iii) the results of a leak-off test conducted below the outer casing shoe, or, if leak- off is not attained, the results of a formation integrity test conducted below the outer casing shoe; (iv) the results of an injectivity test conducted below the outer casing shoe; and (v) if required by the commission, a cement quality or other log(s); (C) if the annular disposal operations are proposed for a permitted but not drilled well, the information required under (e)(10)(B) of this section may be submitted as soon as it becomes available; the annular disposal application will not be complete until all this information is submitted. (11) a list and description of any uncemented hydrocarbon zones within the disposal annulus; (12} a list of, description of, and salinity determination for all waters penetrated by the well; salinity determinations must be based upon laboratory measurements or calculation methods described in the "Survey of Methods to Determine Total Dissolved Solids Concentrations," Contract No. 68-03-3416, KEDA Project No. 30-956, U.S. Environmental Protection Agency, Office of Drinking Water; (13) if drilling waste was previously disposed of through the annular space of the well, the dates of the disposal operations, the types and volumes of each type of waste disposed of, and the sources of the waste; and (14) additional information and analyses required by the commission. ( fl Annular disposal operations must comply with the following conditions: (1) the downhole disposal pressure may not at any time exceed the downhole pressure measured during the formation leak-off test or formation integrity test that was conducted below the outer casing shoe; (2) the operator must continuously monitor the following during disposal operations: the types and volumes of each type of waste disposed, disposal rates, surface pressures of the tubing and all annuli of the well receiving the drilling waste, and as specified by the commission, surface pressures of the annuli of adjacent wells; (3) the operator shall immediately cease disposal, notify the commission within 24 hours, and take all appropriate remedial action, including but not limited to any action ordered by the commission, if (A) there is evidence of migration of fluids from the disposal interval; (B) disposal operations pose a threat to well integrity, health or safety, hydrocarbon- bearing zones, correlative rights, or the environment, including freshwater; or 3 ~ Re ister 200 MISCELLANEOUS B~RDS g ~ - Draft OS/20/09 (C) there is any unauthorized disposal; (4) the operator shall file with the commission a full report within 10 days of any incident requiring action under (~(3) of this section; the report shall include a description of any actions taken, the effectiveness of those actions, and any additional necessary actions; and (5) the operator shall comply with any other conditions the commission determines are important to ensure compliance with any limitation in (c) or (d) of this section. (g) The operator shall (1) not later than 20 days after each calendar quarter during an authorized disposal operation period, file with the commission a Report of Annular Disposal (Form 10- 423); and (2) file additional information and analyses as required by the commission. (h) Unless notice and hearing are required under this section, upon written request from the operator, the commission may approve a variance from a requirement of this section if the variance provides at least an equally effective means of complying with the requirement, or a waiver of a requirement of this section if the waiver will not promote waste, is based on sound engineering and geoscience principles, will not jeopardize the ultimate recovery of hydrocarbons, will not jeopardize correlative rights, and will not result in an increased risk to health, safety, or the environment, including any freshwater as defined under 20 AAC 25.990(27). (i) In this section, "drilling waste" means the following substances, unless identified as a "hazardous waste" in 40 C.F.R. 261: (1) drilling mud, drilling cuttings, reserve pit fluids, cement-contaminated drilling mud, completion fluids, formation fluids associated with the act of drilling a well permitted under 20 AAC 25.005, and any added water needed to facilitate the pumping of drilling mud or drilling cuttings; (2) drill rig wash fluids and drill rig domestic waste water; and (3) other substances that the commission determines, upon operator request, are wastes associated with the act of drilling a well permitted under 20 AAC 25.005. (Ef£ 9/22/96, Register 139; am 11/7/99, Register 152; am / / , Register ~ Authority: AS 31.05.030 AS 31.05.040 4 ~ ~ ~ J ~ STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF AO~O29 ~ 4027 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE `,; ~~€'s'~^i" ~dR tN~'~l~~`ALY ;, Es~ „, ~ F AOGCC A(3ENCY CONTACT ~ATE oF A.o. June 12 2009 R ° 333 W 7th Ave, Ste 100 Jod Colombie , Anchorage, AK 99501 PHONE PCN "" 907-793-1238 DATES ADVERTISEMENT REQUIREO: a Anchorage Daily News June 15, 2009 PO Box 149001 Anchorage, AK 99S 14 THE MATERIAL BETWEEN THE DOUBLE LINE8 MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal~ ^ Display Classifi ed ^Other (Specify) SEE ATTACHED ~~~~~ ~~ ~1~1 ~L~~~~ ~~~~ AOGCC, 333 W. 7th Ave., Suite 100 TOTAL OF ~" ~#, „~~ `~~' " Anchora e AK 99501 pA~E ~ oF z pp~ES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ~ 0291 0 FIN AMOUNT SY CC PGM LC ACCT FY NMR oisr uo 1 08 02140100 73451 2 REQUIS TION D Y: D!VlSION APPROVAL: 02-902 (Rev. Publisher/Original Copies: Department Fiscal, Department, Receiving AO. FRM ~ ~ Notice of Public Hearing and Comment Opportunity STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Aurora Gas, LLC for a spacing exception under 20 AAC 25.055 to drill the Moquawkie No. 5 well. Aurora Gas, LLC (Aurora), by a letter received June 2, 2009 by the Alaska Oil and Gas Conservation Commission (Commission), requests an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill the Moquawkie No. 5 vertical gas development well within the same governmental section as, and within 3,000 feet of, wells capable of producing from the same pool. The proposed surface and bottomhole locations of the Moquawkie No. 5 well are the same: 1,169 feet from the north line and 1,268 feet from the west line of Section 1, Tl 1N, R12W, Seward Meridian (S.M.). A public hearing on the application is tentatively scheduled for July 21, 2009, at 9:00 a.m. at the Commission: 333 West 7~' Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on July 6, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907-793- 1221 after July 9, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on July 17, 2009, except that, if a hearing is held, comments must be received by the conclusion of the hearing. If, because of a disability, special accommodations may be needed to cornment or attend the hearing, ca11907-793-1221 by July 20, 2009. Daniel T. Seamount, Jr. Chair ~ ~ i;b/~s~it~~ ~~~~~~~~~ _ `')N 2 ~ ~(~~~ Anchorage Daily News 1 ` ` Affidavit of Publication .~~~s~~ ;~,~ ~, ~;~~ ~~,~~, ~~c~~,;r~:~ . 1001 Northway Drive, Anchorage, AK 99508 ~~~C~~~.~~,,, PRICE OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PEK DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 646995 06/15/2009 02914027 STOF0330 $162.68 $162.68 $0.00 STATE OF ALASKA THIRD JUDICIAL DISTRICT Shane Drew, being first duly sworn on oath deposes and says that he 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 dunng 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 supplementaI 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 fizll amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed e~1~~ Subscribed and sworn to me before this date: $0.00 $0.00 $162.68 ~r~~ Notice`Of PubiiC Heafing and COmmelx OpportUnity STATE OF,qLASKA Aiaska oil and Gas Conservation Cbmmission RQ: ThB appliCBtion Of Au[ore G85, LLC fo~ d spacirig exception onder 20 AAC 25.055 to drili the Moquawkie No. 5 well. I Aurora Gas, LLC (AUrora), by a letter ~eceived ~une 2, 20o9 by the Alaska Oii and Gas Conservation ° Commission (COmmission), requests an ordeY for an 8xcgptiorr Yo the spacing requirements of 20 AAC 25.055(a~(4) to drill the Moquawkie No. 5 vertiC81 gas development well within the same governmental . secCion a, and withih 3,ppp feet of, weNS'eapabie of protlucin~ ~rom t~ sar~e pool. ilte proposed surface and bottomhole h~ations"of #he Moquawkie No. 5 well are the same: 1,~69 f@et ' from the fYO~Yh line and 1,268 feet frortPthe west 11ne Of SectiOn 1, T11N; R12W, 3ew8rd Meridien {S.M.). A phubl'rc'hearing on the application is tentakivefy Comm s~s onr~333 Ni 5~ 79tk~AVe~ Su te 100, AnChOY2g@, AK 49501. TO ~2qU2St th8t fhe h2a~ing be held, a w~itten request must ke filed by 4:30 p.m. on July 6, 2009: If a request is not timely iiled, thE Commission may consider the issuar~ce'o# an order' ~ wiNwut a hearing: To learn if the Commission wil! , hold a hearing, call 907-793 122t aft2UUly 9, 2009. Written comrr~nts regartling the appli~ation may pe submitted to the Commission at the address above. Comments must be received by a:30 p:m; on luly 97, 2009, except that, if a hearing is held, comments must be rec~ti by the conclusion of the tiearuig., ff, beCause of a disabiliry, speciat accommodations may be need~d to comment or attend the hearing, ; ca11907-793-122Y by7uly 20, 2009. Dahie! T~ Seamount,lr. chair ' AO-02914027 Putilished: June 15, 2009 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: < ~ ~ '9~i~ ~l'°+/f . ~ ,~ ~e~ ,~',t ry~r ~: `~"~ o~~ ~ ,~~, ~ ~OL ~. >` ' w, ~' ;R~ ~. v. ° ~, ^ ' ; ~~ ~ ~~~~~ ' ~ : ; ''~' "' ° : ~~ ° ~~ q~`~ . ~1, '~l~1~~~1~11 l l 1, ~ }1>l, ' ~ STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATfACHED COPY OF AO-02914027 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7`h Avenue. Suite 100 ~ Anch~rage_ AK 995~1 '" 907-793-1238 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 United states of America State of AGENCY A.O. PHONE PCN DATES ADVERTISEMENT REQUIRED: June 15, 2009 THE MATERIA~ BETWEEN THE DOUBLE LINES MUST BE PRINTEO IN 1T3 ENTIRETY ON THE DATES SHOWN. SPECIAL IN3TRUCTION3: Account # STOF0330 AFFIDAVIT OF PUBLICATION REMINDER ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. 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 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, 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 2009, Notary public for state of My commission expires _ r~ STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER ~ ~~i~~ ~,-~t~~ < ,,,, .,,,. „ , ,.. ,,,, INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATfACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02914028 F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. June 12 2009 ° "" Anchorage, AK 99501 907-793-1238 PHONE PcN DATE3 ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion P.O. Box 3009 Kenai, AK 99G 1 1 June 17, 2009 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN IT3 ENTIRETY ON THE DATES SHOWN. 3PECIAL IN3TRUCTION3: Advertisement to be published was e-mailed Type of Advertisement Legal~ ^ Display Classifi ed ^Other (Specify) SEE ATTACHED ~~ °~'!' ~~ ~ '~~'~; ~~ ~~ AOGCC, 333 W. 7th Ave., Suite 100 ~, ~~~~~ ~ Anchora e AK 99501 ~ii , ,~! , ~; ; pqcE ~ oF 2 PnGes TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ~ 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST Up 7 08 02140100 73451 2 3 4 REQUISITIONED BY: DIVISION APPROVAL: r ~ Notice of Public Hearing and Comment Opportunity STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Aurora Gas, LLC for a spacing exception under 20 AAC 25.055 to drill the Moquawkie No: 5 well. Aurora Gas, LLC (Aurora), by a letter received June 2, 2009 by the Alaska Oil and Gas Conservation Commission (Commission), requests an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill the Moquawkie No. 5 vertical gas development well within the same governmental section as, and within 3,000 feet of, wells capable of producing from the same pool. The proposed surface and bottomhole locations of the Moquawkie No. 5 well are the same: 1,169 feet from the north line and 1,268 feet from the west line of Section 1, T11N, R12W, Seward Meridian (S.M.). A public hearing on the application is tentatively scheduled for July 21, 2009, at 9:00 a.m. at the Commission: 333 West 7th Ave., Suite 100, Anchorage, AK 99501. To request that the hearing be held, a written request must be filed by 4:30 p.m. on July 6, 2009. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907-793- 1221 after July 9, 2009. Written comments regarding the application may be submitted to the Commission at the address above. Comments must be received by 4:30 p.m. on July 17, 2009, except that, if a hearing is held, comments must be received by the conclusion of the hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, ca11907-793-1221 by July 20, 2009~„ ~ ~~ ~ Daniel T. Seamount, Jr. Chair . ~ ~ ~ PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, ~ STATE OF ALASKA ss: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Public Hearing AO-02914028 a printed copy of which is hereto annexed was published in said paper one each and every da~ for one successive and consecurive da~ in the issues on the following dates: June 17, 2009 X ~fc''J~.~. e, ~.~r~¢. SUBSCRIBED AND SWORN to me before "s 17th day of June , 2009 NOTARY PUBLTC in favor for the State of Alaska. My Commission expires 26-Aug-12 - - ~ ~ ... ._ _. .~.«.~ ... ._ ...~ Hetios ~ Pa~uc ii~.~r-s ~ +~+a c~ o~vo~i~-~ty ~ BT~-T1E t~F AI.A~tA ~ Alaska 0ii and G~s Conservstian Qommissfon ' Re: The application of Aurora t3as, LLC far a sp~cing' ' exceptiorr under 20 ' AAC 25.055 to drill the Moquawkie No. 5 wea. ~ Aurora Gas, LLC (Auror~, by a lett~ received dune 2,' ~ 2009 by the Alaska Oil and Cias' Co~gBriration ~ Commission (Commission), reque~ts an a~ier far a~ I exception to the spacing requiremeMS of 24 AAG ~ 25.055(aj(4) to drilt the.Moquawl~ie Na. 5 verttCal ~a~~ ~ devebpfisrtt weN wiihin the same gov~nmental ' eecticm ~, and wit9~ 3,~I00 feet t#, welis capabia of' produci~g from the same pool. ' The proposed surface and bottomhole locatio~ c~f tt~e ~ Moquawkie No. 5 well are the seme: 1;169 f~et irom~ ~ the north line and 1,268 feet fram the west Nr~ -cif . ~Sectian 1,1'11M, R12W. Seward Meri+di~ {S,M:~.. ~ A" public hearing' on the application is fentafiv~y 'scheduled for July 21, 2009, at 9:00 a.m. at t~ie,~ Commission: 333 West 7th Ave., SuFte 1~1, ~ ~ Anchorage, AK 99501. To request that the hea~g t3e ' held, a written request must be filed by 4:30 p.m. on t July 6, 2009. If a request is not : timeiy ffled, the ' Commission may consider the issuance af Sn order~ without a I~earing. To leam ff the Gornmission wilt hold' ~ s heazing, ca11907-793-1221 after July 9, 2009. ( Written comments regarding the appNcation may be' submifted to the Oommission at the acidrees above. ' Comments must be received by 4:30 p.m. on July 17, ~ 2~9, except that, if a hearing is held, comments must 1 ~ be received by the conclusion of the he~ing. ~ ' If, 6ecause of a disability, special a~eommadaYions I may be needed to commem or ~aitend the hearing, calf f 9W-793-1221 by July 20, 2009. ~ ~ ~ ~~ T ~~uM, ~ I Chair PUBLISH: ~200fl ~ ~ ~ ~ 73#~fi~5ttl7~4~ ~ ~ ~~ ~ ~~ 1~~1 ~~ i ~ ~"~~ ~ ~~S RUSS~ ~ C~.. S~tiT~,~ 1"' . ~'i.JB~i~ ~'e.~Ai~` ... :C,`~',~ 02-902 (Rev. 3/94) Publish~nal Copies: Department Fiscal, Departr~Receiving AO.FRM STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO-02914028 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE S~. ,'i°fi`1tiM F' 1~ IP~fQ1~ A~"pFi ~~ ~ F AOGCC AGENCY CONTACT ~ATe OF A.o. ~ R 333 West 7th Avenue. Suite 100 ~ Anchnrage. AK 995~1 PHONE pCN "" 907-793-1238 DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion June 17, 2009 PO Box 3009 Kenai, AK 99611 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTION3: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. 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 qTTACH 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 2009, and thereafter for consecutive days, the last publication appearing on the day of , 2009, 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 2009, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER ~ ~ 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 l~/('~~ ~/~~~' ~~ _ . ~ ~ Aur+ora G~rs ~~ ~ www.aurorapower,com ~ LLC ~~~~~~~~ ~~Unr ~ z >~o~ June l, 2009 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7~` Ave., Suite 100 Anchorage, Alaska 99501 Re: Application for Well Spacing Exception Moquawkie #5 Development Gas Well Dear Mr. Seamount: ~l~s~a Oi~ ~ ~as Ca~r~. ~or~r~~~sio~~ ~Ir~ehar~~~ Pursuant to 11 AAC 25.055 (d), Aurora Gas, LLC (Aurora) hereby requests approval to allow the drilling, perforating, completing, testing and production of the Moquawkie #5 development gas well within 3,000 feet of other existing gas wells in the Moqua.wkie Unit on the west side of the Cook Inlet. Attached is a plat depicting the location of this proposed well. The Moquawkie #5 will be targeting gas in the Upper Tyonek and Shallow Beluga Formations. Specifically, the Moquawkie #5 will be targeting the following sands: a) the coal seam at'150' that diverted gas in the Moquawkie #4 (surface casing will be set at 600- 650' and drill into it with the BOP stack on this time)--we plan to core and, possibly perforate and test; b) the Tsuga 2-7 sands at 1050-1236', none of which are perforated in the Moquawkie #3 or #4 wells; c) the Tsuga 2-8 sands at 1357-1383', which is perforated in the Moquawkie #3 but is behind a closed sliding sleeve--it has produced only a minimal amount and it is believed to be fault ~ separated based on the pressures in the deeper Carya 2-l.l; d) the Carya 2-1.1 at 1746-86', which produces in the Moquawkie #3 but shows no pressure ~" depletion in the Moquawkie #4 on the XPT tests (pressures of 970 and 1017 psia at 1784' and 1749', respectively, vs. 350 psia estimated from surface pressures in the Moquawkie #3); e) the Carya 2-2.1 at 1947-1988', which is not perforated in either Moquawkie #3 or #4 wells; / ~ the Carya 2-2.3, which is not perforated in either Moquawkie #3 or #4 wells; and `~ g) possibly the Carya 2.3.1 at 2252-2266', which was not perforated in Moquawkie #3 or #4 wells. 1400 West Benson B/vd., Suite 410 • Anchorage, AK 99503 •(907) 2T7-1003 • Fax: (907) 277-1006 6051 North Course Drive, Suite 200 • Houston, TX 77072 •(713) 977-5799 • Fax: (T23) 977-1347 ~ ~ Dan Seamount June l, 2009 Page 2 In summary, the the Tsuga 2-8 and the Carya 2-11 are the only intervals that will be tested in the Moquawkie #5 that have been perforated in either the Moquawkie #3 or the Moquawkie #4 wells, and pressure tests indicate that the 2-L 1 is not depleted by the Moquawkie #3 (the estimated bhp of that interval at the time of the test in Moquawkie #4 was about 350 psia). (Note that the XPT tests in the attached Excel spreadsheet, see "M4 XPT Data." tab, indicated some depletion in the #4 between 2030' and 2830' from production in the #3 and Mobil Moquawl~ie #1). The closest well to the proposed l~Ioquawkie #5 is the Moquawkie #4 located on the same pad approximately 150 feet to th~ west. The Moquawkie #5 well will not be producing from the same geologic horizons as the Moquawkie #4. The Moquawkie #4 received a spacing exception from the AOGCC on August 21, 2007 (CO #589}. The nearest wells capable of producing from the same geologic horizons are the Moquawkie #1 and #3 wells approximately 1,200 feet to the southwest. Although Aurora Gas believes the Moquawkie #5 and Moquawkie #3 are separated by a fault. The pressure data from the attached PowerPoint slides support the seismic interpretation, which shows the Moquawkie #3 fault separated from the Moquawkie #4 and #S locatian down thru the Carya 2-2.1 Ievel. Note that there is splinter faulting deeper at the Carya 2-4.21evel, but it is apparently not sealing, as there is pressure depletion below that level in the Carya 2-2.2. Other wells in the area capable of production are: Simpco Moquawkie #1 (shut-in) approximately 1,600 feet to the north and the Simpco Moquawkie #2 (producing) approximately 3,700 feet to the south. There are no other wells capable of production within two miles. Aurora is the lessee and Unit Operator of the Moquawkie Unit and all surrounding oil and gas leases and adjoining governmenta.l sections. The only affected landowner of this application for exceptian is the Cook Inlet Region, Inc. (CIRI). The Notice required by AOGCC regulation has been sent to CIRI and the Affidavit attesting to this and the other facts contained herein is attached. Should questions arise in connection with this request, please contact Mr. Ed Jones in the Anchorage office at (907) 277-1003. Respectfully Submitted By, ~~~~~~ ~~ ~.. Bruce D. Webb Manager, Land and Regulatory Affairs attachments SEC 36 £ SEC 31 _ . ___ .. ... ........ _~_ _......_. _..... .. SEC 1 ; SEC 6 ~ GRID N:2589080.630 ~ ' GRID E:268206.140 LATITUDE: 61 °04'48.689"N ; ~ LONGITUDE: 151 °18'33.093"W z ; ~ c°~o PROPOSED LOCATION ; ~ MOQUAWKIE #5 ASP NAD27 ZONE 4 ; N:2587938.797 E:266914.280 ; ELEV.: 299' NAVD88 MOQUAWKIE #4 - ,._...,,.__.~ ..._._~w._... ~ "~~'`~.,,~ ;1268' FEL ~ Pipeline ACCESS ROAD Route CENTERLINE EXISTING NOTES MOQUAWKIE #3 1) BASIS OF COORDINATES IS ALASKA STATE MOQUAWKIE #1 PLANE NAD 27 ZONE 4 FROM DETERMINED BY AN OPUS SOLUTION AND CONVERTED TO NAD27 WITH NADCON. 2) BASIS OF ELEVATION IS NAVD88 COMPUTED USING GEIOD06 DETERMINED BY AN OPUS SO~UTION. 3) SECTION LINES SHOWN HEREON ARE S EC. 1 BASED ON PROTRACTED VALUES. ~ T11N, R12W, S.M., AK (U.S. SURVEY NO. 1865) MOQUAWKIE NO. 5 W~LL SURFACE LC?CATIQN DIAGRAM ~5 ~~ ;;, APPI.(CANT: A ~ ~ ~ PROJECT NQ. DRAWN BY: aATE: g~~, { ~NE LOCATIlJN: JUNE 1, Q9 o~~seTS: PR(?TRACTED BECTlC~N 1 ~~~ 1969' FNL TOWNSHIP 1'f Ni'~RTH, RANGE 12 WEST 1268' FEL SEWARC3 MERIDIAN, ALASKA ~ • NOTICE OF APPLICATION FOR WELL SPACING EXCEPTION Moquawkie #5 Development Gas Well Aurora Gas, LLC has applied for an exception to the well spacing requirements, pursuant to the Alaska Oil and Gas Conservation Commission regulations [11 AAC 25.055(d)]. The proposed well is located in Section 1, Township 11 North, Range 12 West, of the Seward meridian. It is planned to be drilled approximately 1,170 feet from the nortl~ section line and 1,270 feet frflm the east section line, within the Moquawkie Unit located on the west side of the Cook Inlet. The nearest welis capable of production from the same reservoir are: a) Moquawkie #1, located approximately 1,360 feet southerly b) Moquawkie #3, located approximately 1,200 feet southwesterly c) Simpco Moquawkie #l, located approximately 1,600 feet northerly d) Simpco Moquawkie #2, located approximately 3,700 feet southerly There are no other wells capable of production within two miles of the proposed Moquawkie #5 development gas well. Aurora Gas, LLC is the lessee and Unit operator of the Moquawkie Unit, awned and managed by the Cook Inlet Region, Inc. (CIRI). The address of record for CIRI is: Cook Inlet Region, Inc. P.O. Box 93330 2525 C Street, Suite 500 Anchorage, AK 99509-3330 Attn: Kim Cunningham, CPA Director, Land and Resources There are no other affected ovvners, landowners, lessees or operators within two miles of the proposed Moquawkie #5 development gas well. The Application for Exception is attached to this Notice. Dated this lst day of June, 2009, in Anchorage, Alaska. ! ` AFFIDAVIT IN SUPPORT OF THE NOTICE AND APPLICATION FOR WELL SPACING EXCEPTION Moauawkie #5 Development Gas Well I, Bruce D. Webb, Manager of Land and Regulatory Affairs for Aurora Gas, LLC hereby certifies that the required information, data and geographic portrayals conta.ined in the Notice and Application for exception to the well spacing requirements, pursuant to the Alaska Oil and Gas Conservation Commission regulations [11 AAC 25.055(d)], for the above referenced well, dated June 1, 2009, are true and correct, to the best of my knowledge. Further your affiant sayeth not. AURORA GAS, LLC By; `t~,~/, ~.J~c~ Bruce D. Webb Manager, Land and Regulatory Affairs IN THE UNITED STATES QF AMERICA ) ) ss. STATE OF ALASKA ) ~~~-_-`-_ Dated This certifies that on the 1St day of June, 2009, before me a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared Bruce D. Webb, to me known and known to me to be the person described in, and who executed the foregoing assignment, who then after being duly sworn according to law, acknowledged to me under oath that he executed the same freely and voluntarily for the uses and purposes tl~erein mentioned. Witness my hand a~~~Q~~~l seal the day and year first above written. ~~~~ N!~- ~!, p%~~ ~~~ "' • ~q ~i ; : '~01'qR~.s ; _. . = ~; ~BUC ~ ~ N ta.ry Public = ~''~ ~ ~ . Z• ZUfO ~~~y~ M Commission Expires: 0 '~~i~ ' ~F A1.P'r ~y" ~~~,~ ,.,~~J1~i,~~.\~~. ~Aur+ora Gas, LLC 2500 Citywes# Blvd., Suite 2500 Houston, Texas 77042 (}42J~C7087767 ~~.u~ ~/01 {(~ ~E;~ ~rc~r:~ t7 ~ ~ ~ ~ ~ i ~:. ~ a CQmpleYe iterns 1, ~; and 3. Also complet.e item 4'rf Restricted Delivery is desired. ~^. Print y,qur narne and address on the reverse - ~ so that we can return the carsi to you. ~^ Attach.fhis card to the back of the mailpiece, I or on the fron3 if space permits. ~ 1. Article Addressed to: I I ~~M ~~/~'rt~+~j ~'!M ~ Gr(L.t ~ ' ~ t1 A. Signature ; . ^ Agent . ~ X ^ a,adr~ ~ B. Received by ( Printed Name) G. Dafe of Detivery ~ I D. is delivery address di(ferent from iiem 1? 0 Y~ I tf YES, enter delivery address below: ~ No i I I ( _._~_. - - _1 ~ ~ ~ ~ 2S ~ G' ~~ ~ 3. Service Type ' ~ i~~e, ^ r / ^ Cert(fied Mail C~ F.acpress Mail ~ /'3~'r~~-p (~ p~i~{e~ ^ Retum Receipt for Merohandise i ~ !~.~r~+3 C~ Insured Mlail Ll G.O.D. I 4. RestiiCted Deliuery? l~~ Fee) ^ Yes I ~ ~ 2. a~ci~ieNum~r 70~5 D39[] {]D0~ 6~99 563^ ~ ~ (rransfer from servlce label~ ~ Domestic Retum Receipt 102595-o2-M-t54o ~ ~; Ps Form 3811, February 2004 ~ .~~~:::. ~ , _ _ _ .- ,.<.. . _ , . _ ~ ,._, . : , -= r _:~~.~ ._,~ ~: ~ .,.~.,~-. - - _ _ _.. : ,.r.__.:.~ .~ ~- ~ '~