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Home My WebLink AboutCO 626 1 Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. 1 Io Order File Identifier Organizing (done) Two -sided II III1111II1I1111 Rescan Needed 111 IIIII 111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) Color Items: Diskettes, No. Maps: Greyscale Items: Other, No/Type: Zher Items Scannable by A A Large Scanner X (4 i Poor Quality Originals: OVERSIZED (Non Scannable) Other: Logs of various kinds: NOTES: Other:: oif BY: Maria Date: a 7 ©g /s/ Project Proofing 1 111111 1111 BY: Maria Date: `a, D /s/ II Scanning Preparatio x 30 TOTAL PAGES 5' BY: Date: 0 (Count does not include cover sheet) /s Production Scanning 11 11111 1111 Stage 1 Page Count from Scanned File: a 7 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: a- 7 0 q is, p 1 1 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. 11111111 11111 1111 ReScanned 1HIIIII VIII BY: Maria Date: /s/ Comments about this file: Quality Checked 11 1 11111111111111 10/6/2005 Orders File Cover Page.doc a INDEX CONSERVATION ORDER NO. 626 Paxton #3 1. October 1, 2009 Marathon Oil Company's request for Spacing Exception Paxton #3 2. October 5, 2009 Notice of Hearing ADN and Notice of Hearing, Affidavit of Publication, e -mail list, bulk mailing list Conservation Order No. 626 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Marathon Oil Conservation Order No. 626 Company for an order granting an exception to the spacing requirements of Ninilchik Unit, Paxton No. 3 20 AAC 25.055(a)(4) to provide for the Delineation and Production Gas Well drilling, completion, testing and regular production of the Paxton No. 3 gas delineation well within 3000 feet of a well November 5, 2009 capable of producing from the same interval. 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 5th day of November, 2009. BY DIRECTION OF THE COMMISSION 1 r. IA Jo� J. Co 1 Spe¢ia1 A stant 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 Marathon Oil Conservation Order No. 626 Company for an order granting an exception to the spacing requirements of Ninilchik Unit, Paxton No. 3 20 AAC 25.055(a)(4) to provide for the Delineation and Production Gas Well drilling, completion, testing and regular production of the Paxton No. 3 gas delineation well within 3000 feet of a well November 5, 2009 capable of producing from the same interval. IT APPEARING THAT: 1. By application dated and received by the Alaska Oil and Gas Conservation Commission (Commission) on October 1, 2009, Marathon Oil Company "MOC requested an exception to the spacing requirements of 20 AAC 25.055(a)(4) to allow drilling, completion, testing and regular production of the Ninilchik Unit Paxton No. 3 (Paxton No. 3) gas delineation well, Susan Dionne Paxton Participating Area, Kenai Peninsula Borough, Alaska. 2. Pursuant to 20 AAC 25.540, the Commission published notices of opportunity for public hearing in the Anchorage Daily News on October 5, 2009. 3. No protests to the application or requests for hearing were received. 4. Because MOC provided sufficient information upon which to make an informed decision, the Commission determined it could resolve the request without a hearing. The public hearing was vacated on October 30, 2009. FINDINGS: 1. MOC is the operator of the Ninilchik Unit Paxton No. 3 well. 2. Paxton No. 3 will be a deviated gas delineation and production well with a surface location 2921 feet from the east line (FEL) and 617 feet from the north line (FNL) of Section 13, T1S, R14W, Seward Meridian (S.M.), and a projected bottom hole location of 3499 feet FEL, 747 feet FNL, Section 12, TIS, R14W, S.M. 3. The Paxton No. 3 well will target gas reservoirs in the Beluga and Tyonek Formations which can have limited drainage due to the discontinuous nature of the Beluga and Tyonek reservoir sands. 4. MOC has provided the Commission with copies of the notices of the application for exception to the well spacing requirements sent by certified mail from MOC to all owners, landowners, and operators of all properties within 3000 feet of the anticipated productive interval of the proposed Paxton No. 3 well. CONCLUSIONS: 1. An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling, completion, testing and regular production of the Paxton No. 3 well in order to evaluate and produce from gas reservoirs in the Beluga and Tyonek Formations. 2. The properties affected by this spacing exception are within the boundaries of the Ninilchik Unit, Susan Dionne Paxton Participating Area. 3. A spacing exception to allow drilling, completion, testing and regular production of the Paxton No. 3 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: MOC's application for exception to the well spacing provision of 20 AAC 25.055(a)(4) for the purpose of drilling, completion, testing and regular production of the Ninilchik Unit Paxton No. 3 well is approved. Because the properties affected by this spacing exception are wholly contained within the Ninilchik Unit Susan Dionne Paxton Participating Area, MOC may proceed with regular production as long as it is in compliance with the terms of the Unit and Participating Area agreements and applicable Alaska law. DONE at Anchorage, Alaska and dated Noo ber 5, 2009. Daniel Tmount, Jr., Chair Alaska Oil and Gas Conservation Commission 01.1_ Cat 4if' oerst: Commissioner ..ka it a '‘f Conservation Commission mow— Jar'. or Co issioner Alaska Oil 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 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. 626 Effective November 5, 2009 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, November 05, 2009 3:34 PM To: 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Bill Walker'; 'Bowen Roberts'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor; 'Cande.Brandow'; 'carol smyth'; caunderwood @marathonoil.com; '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'; 'Evan Harness'; 'eyancy'; 'foms2 @mtaonline.net'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gspfof; 'Hank Alford'; 'Harry Engel'; 'jah'; 'Janet D. Platt'; '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; 'Marguerite 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'; 'peter Contreras'; Rader, Matthew W (DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter'; rob.g.dragnich @exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Rudy Brueggeman'; 'Sandra Pierce'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'Susan Roberts'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; 'Ted Rockwell'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; 'Thor Cutler; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Von Hutchins'; 'Walter Featherly'; Williamson, Mary J (DNR); 'Aaron Gluzman'; 'Dale Hoffman'; Frederic Grenier; 'Gary Orr; Jerome Eggemeyer; 'Joe Longo'; 'Lamont Frazer; Marc Kuck; 'Mary Aschof; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; 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); 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); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: C0626 (Paxton #3) and various cancelled Admin Approvals Attachments: co626.pdf; aio3 -020 cancellation.pdf; aio3 -015 cancellation.pdf; aio14A -002 cancellation.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 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 i 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 462 /Ai? 42 4 STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O- 03014011 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. October 2, 2009 R 333 W 7th Ave, Ste 100 Jody Colombie Anchorage, AK 99501 PHONE PCN M 907 793 -1238 (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: O T Anchorage Daily News October 5, 2009 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e- mailed Type of Advertisement Legal® Display Classified nOther (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ 1 10 02140100 73451 2 1 Ail REQUISITI 1 7 d' DIVISION APPROVAL: 0 j 02 902 X 3/94) Publisher /Original Copies: Department Fiscal, Department, Receiving AO.FRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company for an exception to the spacing requirements of 20 AAC 25.055(a)(4), for the drilling, completion and regular production of a development gas well, within 3000 feet of wells capable of producing from the same interval. Marathon Oil Company (MOC), by a letter dated and received October 1, 2009, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill the Paxton #3 development gas well in the Ninilchik Unit -Susan Dionne /Paxton Participating Area, within 3000 feet of wells capable of producing from the same interval. The proposed surface target and bottom hole location of the well is as follows: Paxton #3 Surface Location: 2921 feet from the east line (FEL) and 617 feet from the north line (FNL) of Section 13, T1S, R14W, Seward Meridian (S.M.). Top Beluga B1 Location: 3284' FEL and 2634' FNL, Section 12, T1S, R14W, S.M. Top Beluga B2 Location: 3380' FEL and 1728' FNL, Section 12, T1S, R14W, S.M. Top Tyonek Production: 3468' FEL and 1011' FNL, Section 12, T1S, R14W, S.M. Bottomhole Location: 3499' FEL and 747' FNL, Section 12, T1S, R14W, S.M. The Commission has tentatively scheduled a public hearing on this application for November 17, 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 October 22, 2009. 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 October 26, 2009. 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 November 9, 2009, except that, if a hearing is held, comments must be received no later than the conclusion of the November 17, 2009 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the Commission's Special Assistant, Jody Colombie, at 793 -1221, no later than November 3, 2009. Daniel T. Seamount, Jr. Chair I 10/5/2009 Anchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER GRAND AD/ DATL EQ. ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 695751 10/05/2009 AO -03014 STOF0330 $255.64 $255.64 $0.00 $0.00 $0.00 $255.64 Notice of Public Hearing STATE OF ALASKA Alaska OE and Gas Conservation Commission Re: The application of Marathon Oil Company for an exception to the spacing requirements of 20 MC 25.055(ax4), for the drilling, completion and regular production of a development gas well, within 3000 feet of wells capable of producing from the same interval. Marathon Oil Company (MOC), by a letter dated and received October 1, 2009, requests the Alaska STATE OF ALASKA Oil and Gas Conservation Commission (Commission) issue an order for an exception to the spacing THIRD JUDICIAL DISTRICT requirements of 20 AAC 25.055(aX4) to drill the Paxton #3 development gas well in the-Ninilchik Unit -Susan Dionne /Paxton Participating Area, within Shane Drew, being first duly sworn on oath deposes and says that 3000 feet of wells capable of producing from the same interval. The proposed surface target and he is an advertising representative of the Anchorage Daily News, bottom hole location of the well is as follows: a daily newspaper. Paxton #3 That said newspaper has been approved by the Third Judicial Surface Location: 2921 feet from the east line Court, Anchorage, Alaska, and it now and has been published in (FE and 3, T1S R 4W, the line the English language continually as a daily newspaper in (S.M). Anchorage, Alaska, and it is now and during all said time was Top Beluga B1 Location: 3284' FEL and 2634' printed in an office maintained at the aforesaid place of FNL Section 12, T1S, R14W, S.M. publication of said newspaper. That the annexed is a copy of an Top Beluga B2 Location: 3380' FEL and 1728' P Y FNL, Section 12, T1S, R14W, S.M. advertisement as it was published in regular issues (and not in su supplemental form) of said newspaper on the above dates and Top Ty do Production: 2, T1S, R14W, FEL and 1011' PP FNL, coon 12, T1 S, R14W, S.M. that such newspaper was regularly distributed to its subscribers Bottomhole Location: 3499' FEL and 747' FNL, during all of said period. That the full amount of the fee charged Section 12, T1S, R14W, S.M. for the foregoing publication is not in excess of the rate charged The Commission has tentatively scheduled a private individuals. public hearing on this application for November 17, 2009 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the Commission Signed no later than 4:30 p.m. on October 22, 2009. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order Subscribed and sworn to me before this date: without a hearing. TO learn if the commission will hold the hearing, call 793 -1221 after October 26, OCT 12 2009 2009. In addition, written comments regarding. this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. Notary Public in and for the State of Alaska. on November 9, 2009 except that, if a hearing is held, comments must be received no later than the Third Division. Anchorage, Alaska conclusion of the November 17, 2009 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, MY COMMISSION EXPIRES: (J contact the Commission's Special Assistant Jody Colombia, at 793 ,1221, nO later than November 3, 2009. Daniel T. Seamount, Chair Car AO -03074011 kt0, \A A (�Q rrr Published: October 5, 2009 ND *OF Ate JJ�fJf *l )1) Page 1 of 2 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, October 02, 2009 2:21 PM Subject: Spacing Exception Public Notice Paxton #3 Attachments: Paxton #3.pdf BCC:'Aaron Gluzman'; caunderwood @marathonoil.com; 'Dale Hoffman'; Fridiric 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'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Blaine Campbell'; 'Bowen Roberts'; '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'; '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. Platt'; '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'; 'Marguerite 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'; 'peter Contreras'; Rader, Matthew W (DNR); Raj Nanvaan; 'Randall Kanady'; 'Randy L. Skillern'; 'Rob McWhorter rob.g.dragnich @exxonmobil.com; 'Robert Campbell'; 'Robert Province'; 'Rudy Brueggeman'; 'Sandra Pierce'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Ted Rockwell'; 'Temple Davidson'; Teresa Imm; 'Terrie Hubble'; 'Thor Cutler'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Von Hutchins'; 'Walter Featherly'; Williamson, Mary J (DNR); Aubert, Winton G (DOA); Ballantine, Tab A (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); 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); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Attachments:Paxton #3.pdf; Jodv .1. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 10/2/2009 I 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 /0/6 9 STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO _03014011 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jody Colombie October 2. 2009 Anchorage. AK 99501 PHONE PCN M 907-793-1238 (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: O T Anchorage Daily News October 5, 2009 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account STOF0330 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 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 #1 Alaska Asset Team M Marathon United States Production Organization P.O. Box 3128 M ARATH O N Oil Company Houston, TX 77253 Telephone 713 296 -3302 Fax 713 499 -8504 RECEIVED OCT 0 1 2009 October 1, 2009 Alaska OiI Gas Cons. Commission Anchorage Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission 333 West 7` Avenue, #100 Anchorage, AK 99501 -3539 RE: Location Exception Application Marathon OiI Company Ninilchik Unit, Susan Dionne /Paxton Participating Area Paxton #3 Well Kenai Peninsula Borough, Alaska Dear Mr. Saltmarsh: Marathon OiI Company respectfully requests the following location exception for the referenced well: Surface Location: 617' FNL 2921' FEL, Section 13, Ti S, R14W, S.M. Target: Estimated Top of Beluga Production: Beluga B1 Productive Interval 4137' MD, 1782' TVD 2634' FNL 3284' FEL, Section 12, T1S, R14W, S.M. Beluga B2 Productive Interval 5360' MD, 2489' TVD 1728' FNL 3380' FEL, Section 12, T1S, R14W, S.M. Estimated Top of Tyonek Production: Tyonek T1 Productive Interval 6602'MD, 3471' TVD 1011' FNL 3468' FEL, Section 12, Ti S, R14W, S.M. Bottom Hole: Estimated 7072' MD, 3843' TVD 747' FNL 3499' FEL, Section 12, T1S, R14W, S.M. The Paxton No. 3 (Pax -3) well targets gas bearing Beluga and Tyonek reservoirs. The well is to be drilled as a development well within the Dionne /Paxton Participating Area targeting the Beluga and Tyonek T1 gas sands in the Ninilchik Unit Tract 8 (ADL- 384372). A location exception is required because the productive interval of the well is within 3,000 feet of a well capable of producing from the same interval, as shown in Exhibit "A The Susan Dionne No. 6 currently produces from the Tyonek T1 within 3,000 feet of the Paxton No. 3. The Paxton No. 1 and Susan Dionne No. 4 penetrate the Tyonek T1 interval within 3,000 feet but do not produce from this zone. The Beluga is present in the Paxton Location Exception Application October 1, 2009 Marathon Oil Company Page 2 Ninilchik Unit, Susan Dionne/Paxton P.A., Paxton No. 3 Well Kenai Peninsula Borough, Alaska No. 1, Paxton No.2, Susan Dionne No. 4, and Susan Dionne No. 6 within 3,000 feet, but is not currently producing in these wells. The Paxton No. 3 is designed to test the viability of Beluga production in the area. There are no other wells, productive or non productive, that penetrate the Beluga or Tyonek T1 within 3,000 feet. This spacing exception is necessary to efficiently drain the Beluga and Tyonek reservoirs that often have limited drainage areas due to the discontinuous nature of Beluga and Tyonek sands. Attached is a plat showing the Pax -3 surface location and well paths from the Paxton Pad. The Beluga B1 and Beluga B2 cut points are noted on the Paxton No. 1, Paxton No. 2, Susan Dionne No. 4, and Susan Dionne No. 6 well paths. The Top Tyonek T1 cut point is noted on the Paxton No. 1, Paxton No. 2, Susan Dionne No. 4, and Susan Dionne No. 6 well paths. Only the Susan Dionne No. 6 is currently producing from the Tyonek T1. Also attached is a pre -drill directional survey for the Pax -3 well. Furthermore, the parties listed on Exhibit "B" are entitled to notice of this application and have been duly notified. Pending Alaska Department of Natural Resources approval, Marathon Alaska Production LLC will be the Ninilchik Unit operator. Should you have any questions related to land or ownership issues, please contact Charles Underwood at 907 565 -3044, or for questions regarding the technical aspects of this application, please contact David Gorney at 713 296 -3473. Sincerely, Michael J. Evans Subsurface Supervisor AAT Oil and Gas Development Attachments: Exhibit A Plat Exhibit B Notification List Directional Survey Affidavit Geological Affidavit Land EXHIBIT "B" Marathon Oil Company Ninilchik Unit, Susan Dionne /Paxton P.A. Paxton No. 3 Well Location Notification List Ninilchik Name Attention Address City State Zip Unit Tract Marathon Oil Company Attn: Steve Virant PO Box 196168 Anchorage AK 99519- 6163 Union Oil Company of California and Attn: Shannon Martin PO Box 196247 Anchorage AK 99519 Chevron, U.S.A. 6247 8 State of Alaska Attn: Kevin Banks 550 W. 7th Street, Anchorage AK 99501 Department of Natural Resources Ste. 800 3580 Division of Oil Gas 30 Cook Inlet Region Inc. Attn: Kim Cunningham PO Box 93330 Anchorage AK 99509- 3330 162/163 Carol A. Wilson 168 Hidden Ridge Cold Spring KY 41076 Ct. 8510 162/163 Katherine Lunne 2530 Fairmont Dayton OH 45419 Ave. 162/163 Patricia Webster 887 Fawn Hill Dr. Edgewood KY 41017 162/163 George A. Gates 308 Village Ln. Greensboro NC 27409 162/163 Charles E. Gates 5 Arbor Circle Cincinnati OH 45255 M MARATHONOiI was L ocation Cook Inlet,, Alaska (Kenai Penninsula) Slot slot #3 HUGHES MARATHON Field Ninilchik Field (NAD83) Well Paxton #3 INTEQ Facility Paxton Wellbore Paxton #3 Plot reference wellpath is Paxton #3 Version #8A True vertical depths are referenced to Glacier #1 (RKB) Grid System: NAD83 TM Alaska State Plane, Zone 4 (5004), US feet Measured depths are referenced to Glacier #1 (RKB) North Reference: True north Glacier #1 (RKB) to Mean Sea Level: 171 feet Scale: True distance Mean Sea Level to Mud line (Facility: Paxton): 0 feet Depths are in feet Coordinates are in feet referenced to Slot Created by: jonethoh on 9/28/2009 Well Profile Data Design Comment MD (ft) Inc Az TVD (ft) Local N (ft) Local E (ft) DLS /100ft) VS (ft) Easting ft Scale 1 inch= 1200 ft g RKB 171' 0.00 0.000 353.705 0.00 0.00 0.00 0.00 0.00 1800 1200 600 0 600 KOP 200.00 0.000 353.705 200.00 0.00 0.00 0.00 0.00 8 550 End of Build 1810.11 80.505 353.705 1330.22 951.12 104.92 5.00 956.89 600 Begin Angle Drop 3687.57 80.505 353.705 1639.91 2791.70 307.97 0.00 2808.63 5 BLG -45 Tgt1 End of Drop 4137.41 62.512 353.600 1782.00 3213.96 354.92 4.00 3233.50 1� Bdgin Final Drop 4542.90 62.512 353.600 1969.16 3571.43 395.02 0.00 3593.21 0 0 RKB 171' j BGL -70 Tgt2 End of Drop 5360.21 37.754 353.600 2489.00 4190.00 464.40 3.03 4215.66 w 5400 KOP MOC T1 Tgt3 6602.23 37.754 353.600 3471.00 4945.71 549.16 0.00 4976.10 Pax3 TD (NAD83) 11-Sep-09'' 4.5in Casing TD 7072.73 37.754 353.600 3843.00 5231.98 581.28 0.00 5264.17 g 550 Pax3 MOC T1 Tgt3 (NAD83) 11-Sep-0 40 4800 5.00 /100ft 1100 BGL -70 Tgt2 End of Drop 4200 Pax3 BGL -70 Tgt2 (NAD83) 11- Sep -O' End of Build 10.75in Casing 1650 Begin Angle Drop 4.00 /100ft Bdgin Final Drop 3600 -c Pax3 BLG -45 Tgtl (NAD83) 11- Sep -09 BLG 45 Tgt1 End of Drop Ca. Begin Final Drop Pax3 BLG -45 Tgt1 (NAD83) 11- Sep -O 0 O O BLG -45 Tgt1 End of Drop m 2200 3.03 /100ft 3000 3 o BGL -70 Tgt2 End of Drop Begin Angle Drop P ax3 BGL -70 Tgt2 (NAD83) 11- Sep -09 0) 2750 2441111 1 I- 3300 MOC T1 Tgt3 1800 Pax3 MOC T1 Tgt3 (NAD83) 11- Sep -09 10.75in Casing TD 3850 Pax3 TD (NAD83) 11- Sep -09 ,o 1200 4.5in Casing i fo,. End of Build 4400 600 4950 KOP 0 slot #3 RKB 171' 550 0 550 1100 1650 2200 2750 3300 3850 4400 4950 5500 6050 6600 Vertical Section (ft) Scale 1 Inch 1100 ft Azimuth 353.66° with reference 0.00 N, 0.00 E Planned Wellpath Report BAKER MAI Paxton #3 Version #8A HUGHES MARATHON Page 1 of 5 INTEQ REFERENCE WELLPAIH IDENTIFICAT Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton 1 REPORT SETUP INFORMATION Projection System NAD83 TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect® 2.0 North Reference True User Jonethoh Scale 0.999998 Report Generated 9/28/2009 at 1:32:01 PM Convergence at slot 1.40° West Database /Source file WA Anchorage /Paxton_ #3.xml WELLI'ATH LOCATION i Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] Northing[USft] Latitude Longitude Slot Location 707.89 2924.12 1346424.84 2230408.54 60 °05'44.091 "N 151 °36'38.915 "W Facility Reference Pt 1349365.17 2231045.67 60 °05'51.066 "N 151°35'41.247"W Field Reference Pt 1371967.44 2251649.81 60 °09'19.105 "N 151 °28'24.639 "W WELLI'A .DATUIYI Calculation method Minimum curvature Glacier #1 (RKB) to Facility Vertical Datum 171.00ft Horizontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 171.00ft Vertical Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 353.66° Planned Wellpath Report BA Paxton #3 Version #8A HUGH MARATHON Page 2 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton WELLPATH DATA (78 stations) t interpolated/extra 1 olated station MD Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments [ft] [0] j°] [ft] jft] [ft] [ft] [sry ft] [sry ft] /100ft] /100ft] /100ft] 0.00 0.000 353.705 0.00 0.00 0.00 0.00 1346424.84 2230408.54 0.00 0.00 0.00 RKB 171' 100.001 0.000 353.705 100.00 0.00 0.00 0.00 1346424.84 2230408.54 0.00 0.00 0.00 200.00 0.000 353.705 200.00 0.00 0.00 0.00 1346424.84 2230408.54 0.00 0.00 0.00 KOP 300.00 5.000 353.705 299.87 4.36 4.33 -0.48 1346424.47 2230412.88 5.00 5.00 0.00 500.001 15.000 353.705 496.58 39.05 38.81 -4.28 1346421.51 2230447.44 5.00 5.00 0.00 600.001 20.000 353.705 591.93 69.11 68.69 -7.58 1346418.94 2230477.39 5.00 5.00 0.00 700.001 25.000 353.705 684.28 107.36 106.72 -11.77 1346415.67 2230515.51 5.00 5.00 0.00 800.00 30.000 353.705 772.96 153.52 152.60 -16.83 1346411.73 2230561.50 5.00 5.00 0.00 1000.001 40.000 353.705 936.58 268.09 266.48 -29.40 1346401.95 2230675.65 5.00 5.00 0.00 1100.001 45.000 353.705 1010.28 335.63 333.61 -36.80 1346396.18 2230742.94 5.00 5.00 0.00 1200.001 50.000 353.705 1077.82 409.34 406.87 -44.88 1346389.89 2230816.38 5.00 5.00 0.00 1300.00 55.000 353.705 1138.68 488.65 485.70 -53.58 1346383.11 2230895.40 5.00 5.00 0.00 1500.001 65.000 353.705 1238.55 661.63 657.64 -72.55 1346368.34 2231067.75 5.00 5.00 0.00 1600.00t 70.000 353.705 1276.81 753.99 749.44 -82.68 1346360.45 2231159.77 5.00 5.00 0.00 1700.00t 75.000 353.705 1306.87 849.33 844.21 -93.13 1346352.31 2231254.77 5.00 5.00 0.00 180 80.000 353.705 1328.51 946.93 941.22 103.83 1346343.98 2231352.01 5.00 5.00 0.00 '...i i �,L x x sm r 'a s r s, I e xc 8a e s 0. ts e e 1900.00t 80.505 353.705 1345.05 1045.55 1039.25 114.65 1346335.56 2231450.27 0.00 0.00 0.00 2000.001 80.505 353.705 1361.54 1144.18 1137.28 125.46 1346327.13 2231548.54 0.00 0.00 0.00 2100.001 80.505 353.705 1378.04 1242.81 1235.32 136.27 1346318.71 2231646.81 0.00 0.00 0.00 2200.00 80.505 353.705 1394.53 1341.44 1333.35 147.09 1346310.29 2231745.08 0.00 0.00 0.00 Z a z...: t <s=";..,,':' f�,, y E, g -��m'' �e ,ey '�'us.�wa�` ,r� :.aka .ui�aa ta: ,�a ,'v o 2400.001 80.505 353.705 1427.52 1538.70 1529.42 168.72 1346293.44 2231941.62 0.00 0.00 0.00 2500.001 80.505 353.705 1444.02 1637.33 1627.46 179.53 1346285.02 2232039.89 0.00 0.00 0.00 2600.001 80.505 353.705 1460.51 1735.96 1725.50 190.35 1346276.60 2232138.16 0.00 0.00 0.00 2700.00 80.505 353.705 1477.01 1834.59 1823.53 201.16 1346268.18 2232236.42 0.00 0.00 0.00 a y <pt ef: s., <7 A te Planned Wellpath Report BA K R 44111A E Paxton #3 Version #8A HUGHES MARATHON Page 3 of 5 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 'Field Ninilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton WELLPATH DATA (78 stations) f interpolated/extrapolated station MD Inclination Azimuth TVD Vert Sect North East Gr East Grid North DLS Build Rate Turn Rate Comments [ft] ri 1 ft [ft] [f ]sry f t] [sry ft] /100ftl °/100ft] /100ft] 2900.00t 80.505 353.705 1510.00 2031.85 2019.60 222.79 1346251.33 2232432.96 0.00 0.00 0.00 3000.00t 80.505 353.705 1526.50 2130.48 2117.64 233.61 1346242.91 2232531.23 0.00 0.00 0.00 3100.00t 80.505 353.705 1542.99 2229.11 2215.67 244.42 1346234.49 2232629.50 0.00 0.00 0.00 3200.00 80.505 353.705 1559.49 2327.74 2313.71 255.24 1346226.06 2232727.77 0.00 0.00 0.00 J 3400.00t 80.505 353.705 1592.48 2525.00 2509.78 276.87 1346209.22 2232924.31 0.00 0.00 0.00 3500.00t 80.505 353.705 1608.97 2623.63 2607.81 287.68 1346200.80 2233022.58 0.00 0.00 0.00 3600.00t 80.505 353.705 1625.47 2722.26_ 2705.85 298.50' 1346192.37 2233120.85 0.00 0.00 0.00! 3687.57 80.505 353.705 1639.91 2808.63 2791.70 307.97 1346185.00 2233206.90 0.00 0.00 0.00 Begin Angle Drop 3800.001' 76.008 353.681 1662.79 2918.68 2901.08 320.06 1346175.58 2233316.55 4.00 -4.00 -0.02 3900.001' 72.008 353.658 1690.33 3014.79 2996.61 330.66 1346167.31 2233412.30 4.00 -4.00 -0.02 4000.00t 68.008 353.635 1724.52 3108.75 3089.98 341.05 1346159.19 2233505.91 4.00 -4.00 -0.02 4100.00 64.008 353.610 1765.17 3200.09 3180.76 351.20 1346151.26 2233596.90 4.00 -4.00 -0.02 14415 4 a; see n k 4200.00t 62.512 353.600 1810.89 3289.02 3269.14 361.11 1346143.51 2233685.50 0.00 0.00 0.00', 4300.00 62.512 353.600 1857.05 3377.73 3357.30 371.00 1346135.77 2233773.87. 0.00 0.00 0.00 4400.001' 62.512 353.600 1903.20 3466.44 3445.45 380.89 1346128.03 2233862.24 0.00 0.00 0.01 IIIIIIIIIIIIIIIIIIIII 4500.00 62.512 353.600 1949.36 3555.15 3533.61 390.77 1346120.30 2233950.61 0.00 0.00 0.01 4600.00t' 60.782 353.600 1996.28 3643.46 3621.37 400.62 1346112.59 22340138.58 3.03 -3.03 0.01 4700.001' 57.753 353.600 2047.37 3729.41 3706.78 410.20 1346105.10 2234124.20 3.03 -3.03 0.00 4800.00 54.72' 353.600 2102.94 3812.53 3789.39 419.46 1346097.85 2234207.01 3.03 -3.03 0.00 4900.00 51.695 353.600 2162.82 3892.61 3868.96 428.39 1346090.86 2234286.78 3.03 -3.03 0.00 5100.001'', 45.636 353.600 2294.85 4042.71 4018.13 445.12 1346077.77 2234436.31 3.03 -3.03 0.00 5200.001' 42.607 353.600 2366.63 4112.32 4087.31 452.88 1346071.70 2234505.65 3.03 -3.03 0.00 5300.00 39.578 353.600 2441.99 4178.04 4152.62 460.21 1346065.97 2234571.12 3.03 -3.03 0.00 5360.21 353.601 4215.66 3.03 -3.03 0.00 is GL -70 Tgt2 End of Drop M Planned Wellpath Report BA KE_ E R Paxton #3 Version #8A HUGHES MARATHON Page 4 of 5 INTEQ REFERENCE ELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field Ninilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton ELLPATH DATA 78 stations t inte o lated/extra olated station M Incliirtion Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments ft ft ft [ft] ]sry ft] [sry ft] /100ft] /100ft] /100ft] 5500.00 37.754 353.600 2599.52 4301.24 1 473.94 1346055.23 2234693.86 0.00 0.00 0.00 5600.00f 37.754 353.1 2678.59 480.76 1346049.89 2234754.85 0.00 0.00 0.00 5700.00f 37.754 353.600 2757.65 4423.70 4396.74 -487.59 1346044.55 2234815.84 0.00 0.00 0.00 5800.00 494.41 1346039.21 2234876.84 0.00 0.00 0.00 ....a, ADO rill 1 4607.38 4579.28 1: 1 1 1 1 1 1 1 1 1 1 1 .1 4668.60 4640.12 .1 1 1 11 1 11 1 11 .1 4729.83 4700.97 1 1 1 1 1 1 1 1 1 1 1 .1 4791.06 4761.81 61 :1 6:00 l 1 1 11 0.00 Illji 33.6O0 1 er r s °=y k 6500.00 �c x' 353.600 3390.17 4913.51 4883.50 -542.19 1346001.83 2235303.79 0.00 0.00 0.00m..... 6600.00 37.754 611 4974.74 4944.35 549.01 1345996.49 2235364.78 0.00 0.00' 0.0011111111111111.11 6602.23 37.754 353.600 3471.00 4976.10 4945.71 1 1 1 0.00 1 1 1 6700.00 37.754 353.600 1 5035.96 5005.20 99 1 1 1 0.00 1 1 1 353.600 36272. dy. 6900.00t 37.754 353.600 3706.43 5158.42 5126.89 569.49 1345980.47 2235547.76 0.00 0.00 0.00 7000.00t 37.754 353.600 3785.50 5219.64 5187.73 576.31 1345975.13 2235608.76 0.00 0.00 0.00 7072.73 37.75' 353.600 3843.00 5264.17 5231.98 -581.28 1345971.24 2235653.12 0.00 0.00 0.00 :HOLE CASING SECTIONS Ref Wellbore: Paxton #3 Ref Wellpath: Paxton #3 Version #8A String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S End E/W [ft] 3 [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 13.5in Open Hole 0.00 2500.00. 2500.00 0.00 1444.02 0.00 0.00 1627.46 179.53 10.75in Casing Surface 0.00 2500.00 2500.00 0.00 1444.02 0.00 0.00 1627.46 179.53'. 8.5in Open Hole 2500.00 7072.73 4572.73 1444.02 NA 1627.46 179.53. NA NA 4.5in Casing Production 0.00 7072.72 7072.72 0.00 3843.00 0.00 0.00; 5231.98 581.28 M Planned Wellpath Report BAKER #3 Version #8A HUGH ES MARATHON Page 5 of 5 INTEQ REFERENCE 11 ELLPA'I H IDENTIFICATION Operator MARATHON Oil Company Slot slot #3 Area Cook Inlet, Alaska (Kenai Penninsula) Well Paxton #3 Field NNinilchik Field (NAD83) Wellbore Paxton #3 Facility Paxton ARGETS 1111 MD TVD North East Grid East Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 1) Pax3 BLG -45 Tgtl (NAD83) 11- Sep -09 1782.00 3263.65 360.49 1346144.00 6: 1.I I °36'46.026 "W circle Mil 2489.00 4174.46 462.66 1346064.05 2234593.02 151°308.042 "W 2) Pax3 BGL -70 Tgt2 (NAD83) 11- Sep -09 Pax3 MOC Ti Tgt3 (NAD83) 11- Sep -09 3471.00 4891.74 543.10 1346001.11 2235312.05 60 °06'32.268 "N 151°36'49.630"W Pax3 TD (NAD83) 11- Sep -09 3843.00 572.49 1345978.10 2235574.06 60 °06'34.842 "N 151°36'50 210"W EMI I 1 AFFIDAVIT Comes now Charles A. Underwood, Jr., and first being duly sworn upon his oath, states and deposes as follows: 1. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past two years I have worked for Marathon Oil Company (Marathon) assisting the Alaska Land Department. 4. That I assisted in preparing a notification list for a Location Exception application for the Marathon Paxton No. 3 well with a surface location in Section 13, T1S, R14W, S.M. and bottom hole location in Section 12, T1S, R14W, S.M. 5. That on or about DC.6 t 2009 Marathon employees mailed notice of the Paxton No. 3 Well Location Exception application to all of the mineral owners, working interest owners, and overriding royalty owners within a 3,000 foot radius of the proposed well location by certified mail, return receipt requested. A list of these noticed owners is attached to this affidavit as Exhibit `B." The postal return receipts will be made available for inspection by proper parties. These notices were mailed to their last known address or record address, and I believe that we have mailed the notice letters to good current addresses. In view of the foregoing facts, affiant herein states and deposes that Marathon, as operator of the proposed Paxton No. 3 well, has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. Further affiant sayeth not. OcJo6e4 zoo Charles A. Underwood, Jr. (affiant) Date STATE OF ALASKA )ss. THIRD JUDICIAL DIST' CT This certifies that on 2009, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared Charles A. Underwood, Jr. of Marathon Oil Company, known to me to be the person described in, and who executed the foregoing affidavit, who then after being duly sworn according to law, acknowledged to me under oath that she executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this c- tificate first above written. 00 41- 71 4 AM AAA NOTARY 1 'IL Wn and or Alaska N My Commis 'on 1 xpires•10i 2�J i 5 NOTARY St 40% PUBLIC AFFIDAVIT Comes now David Gorney, and first being duly sworn upon his oath, states and deposes as follows: I. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That 1 am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past year 1 have worked as a geologist for Marathon Oil Company (Marathon) on the Alaska Asset Team. My responsibilities have included geology of the Cook Inlet/Kenai Peninsula Areas. 4. That I have been responsible for the geological work related to a Location Exception application for the Marathon Paxton No. 3 Well with a surface location in Section 13, TIS, R14W, S.M. and bottom hole location in Section 12, T1S, R14W, S.M. 5. The Paxton No. 3 well targets gas bearing Beluga and Tyonek reservoirs. 6. The Paxton No. 3 well targets gas bearing Beluga and Tyonek reservoirs. The well is to be drilled as a development well within the Dionne /Paxton Participating Area targeting the Beluga and Tyonek T1 gas sands in the Ninilchik Unit Tract 8 (ADL- 384372). A location exception is required because the productive interval of the well is within 3,000 feet of a well capable of producing from the same interval, as shown in Exhibit "A The Susan Dionne No. 6 currently produces from the Tyonek T1 within 3,000 feet of the Paxton No. 3. The Paxton No. I and Susan Dionne No. 4 penetrate the Tyonek T1 interval within 3,000 feet but do not produce from this zone. The Beluga is present in the Paxton No. 1, Paxton No.2, Susan Dionne No. 4, and Susan Dionne No. 6 within 3,000 feet, but is not currently producing in these wells. The Paxton No. 3 is designed to test the viability of Beluga production in the area. There are no other wells, productive or non productive, that penetrate the Beluga or Tyonek TI within 3,000 feet. This spacing exception is necessary to efficiently drain the Beluga and Tyonek reservoirs that often have limited drainage areas due to the discontinuous nature of Beluga and Tyonek sands. Further affiant sayeth not. l5 7 z9/z0 7 David Gorney affiant) Date STATE OF TEXAS )ss. COUNTY OF HARRIS 9 This certifies that on 0�'9 i rZ 2009, before me, a notary public in and for the State of Texas, duly commissioned and sworn, personally appeared David Gorney of Marathon Oil Company, known to me to be the person described in, and who executed the foregoing affidavit, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this ccrtficate firs above written. TARY PUBLIC i nd for Texas ti My Commission Expires: 0 t I Notary Public, c, State of Temmm My Commission Expire(' February 08, 2012 1A it/ C- 061505 Si) ^Lt' 1 v TR151 F F TR 153 1R/ Alaska As k a lasa 1111 11 111111 ■11•=11111111111■ MIME I FR 31 060385 pf has MARATHON OIL COMPANY �S- �l,`2 -P✓ Ninilchik Unit Dionne /Paxton P.A. Paxton No. 3 0.5u Location Exception Exhibit A September 2009 TO V2 trITS-CAJXA424,±