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Home My WebLink AboutCO 635 A • • Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. CO . A Order File Identifier Organizing (done) ❑ Two -sided 111 IIIII.1III ❑ Rescan Needed 1 1111111 111 RESCAN DIGITAL DATA OVERSIZED V(COlor Items: ❑ Diskettes, No. ❑ Maps: Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: El Other:: J BY: Maria Date: / 6 r; /s/ Project Proofing 1 111111 111{ / Date: +� P BY: Maria �.. � , /s/ Scanning Preparation x 30 = + = TOTAL PAGES /ter (Count does not include cover sheet) BY: � Date: / / v �� /s/ Production Scanning 1 11111111111f Stage 1 Page Count from Scanned File: cz 6— (Count does include cover sheet) Page Count Matches Number in Scanning Prep ration: 1/ YES NO BY: Maria Date: /0/0, 5 11 /s/ 1/14f 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. 111 11111111 111 ReScanned 1111111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked I 111111111M 10/6/2005 Orders File Cover Page.doc • Conservation Order 635A 1. August 24, 2011 Aurora Gas Application for Spacing Exception Nicolai Creek Unit #10 2. August 29, 2011 Notice of Hearing, affidavit of publication, bulk mailing list, email list 3. September 7, 2011 Aurora Gas revised permit backup information • 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 ) Docket Number: CO -11 -34 an order granting an exception to the well ) Conservation Order No. 635A spacing provisions of 20 AAC 25.055 (a)(4) to ) provide for the drilling and completion of the ) Nicolai Creek Unit No. 10 (Revised) revised, planned Nicolai Creek Unit No. 10 ) Gas Development Well development gas well within the same ) Nicolai Creek North Undefined Gas governmental section and within 3,000 feet of ) Pool wells that are, or may be capable of, producing ) Nicolai Creek Unit from the same pool. ) Kenai Peninsula Borough, Alaska ) October 14, 2011 IT APPEARING THAT: 1. On August 24, 2011, Aurora Gas, LLC (Aurora) requested the Alaska Oil and Gas Conservation Commission ( AOGCC) approve an exception to the spacing provisions of 20 AAC 25.055 (a)(4) to allow drilling and completion of the planned, revised Nicolai Creek Unit No. 10 (NCU No. 10) development gas well within 3,000 feet of wells that are, or may be capable of, producing from the same pool (the Nicolai Creek North Undefined Gas Pool). 2. By certified U.S. mail, Aurora sent notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the revised, planned NCU No. 10 well. Aurora provided the AOGCC the notice, date of mailing, addresses to which the notice was sent, and proof of mailing. 3. Pursuant to 20 AAC 25.540, on August 29, 2011 the AOGCC published in the PENINSULA CLARION notice of the opportunity for a public hearing on October 6, 2011. The notice was also published on the State of Alaska's Online Public Notice Internet website and the AOGCC's Internet website and was distributed to all subscribers to the AOGCC's conventional and electronic mailing lists. 4. No protest to the application or request for hearing was received. 5. Because Aurora provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 6. The public hearing was vacated on October 3, 2011. FINDINGS: 1. On September 15, 2010, the AOGCC approved and issued to Aurora a permit to drill for the for the planned onshore, deviated NCU No. 10 well, which is located within the Nicolai Creek North Undefined Gas Pool, Nicolai Creek Unit, Kenai Peninsula Borough, Alaska. 2. The approved surface location for NCU No. 10 was 1799' from the north line and 1504' from the west line of Section 20, T11N, R12W, Seward Meridian (S.M.), and the projected bottom -hole location was 2140' from the north line and 300' from the east line of Section 19, T11N, R12W, S.M., which is annotated on Figure 1, below, as "NCU 10 (Previous)." As planned, this well required a spacing exception. 3. On September 29, 2010, the AOGCC approved Conservation Order No. 635 (CO 635), which grants an exception to the spacing provisions of 20 AAC 25.055 (a)(4) to allow drilling and completion of NCU No. 10. During adjudication of CO 635, the AOGCC received no comments, objections, protests or requests for public hearing. Conservation Order N 635A • October 14, 2011 Page 2 of 3 U ADL 391265..: ---- - - - - -- .". MHT 9300066 r _ NCU 10'1 500' (Revised) ' i , � \ � t NCU 10 (Previous) { ' 4 ( j N `° Nicolai Creek w E Cr; N M J 'Vi ?(t' ■ i.. S 0 0 ADL 391472 ADL 63279 ADL 391472 0' 1000' ADL 391266 Figure 1. Index Map for Nicolai Creek Unit North Participating Area 4. On August 4, 2011, the AOGCC approved and re- issued to Aurora a permit to drill NCU No. 10 to a revised bottom -hole location. The surface location for the well remains unchanged, but the projected bottom -hole location has been moved to 593' from the north line and 434' from the west line of Section 20, T11N, R12W, S.M., which is annotated on Figure 1 as "NCU 10 (Revised)." 5. The gas reservoirs targeted by NCU No. 10 lie within the Nicolai Creek North Undefined Gas Pool, and they are subject to the statewide spacing rules of 20 AAC 25.055. 6. The targeted gas reservoirs lie at a structurally more favorable location within 3,000 feet of the active, offset development gas well NCU No. 3. 7. NCU No. 10 may be the second gas producing well in Section 20, T11N, R12W, S.M.; however, the gas reservoirs targeted are lenticular and discontinuous. 8. The State of Alaska is the landowner and Aurora is the owner and operator and for all leases that lie within 3000' of the revised, planned well: State leases ADL - 63279, ADL- 391472, ADL- 391265, and Mental Health Trust lease MHT- 9300066. 9. Aurora is the operator of the Nicolai Creek Unit and NCU No. 10. CONCLUSIONS: 1. An exception to 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the revised, planned NCU No. 10 development gas well in order to recover Nicolai Creek North Undefined Gas Pool reserves that are not accessible with existing wells. Conservation Order 1 635A 0 October 14, 2011 Page 3 of 3 2. A spacing exception to allow drilling and completion of the revised, planned NCU No. 10 well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the AOGCC's authority under AS 31.05.030 and 20 AAC 25.055, the AOGCC approves this amended order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling and completion of the NCU No. 10 well. Aurora may proceed with regular production. However, except the spacing exception granted here, nothing in this order modifies the terms of the Nicolai Creek Unit agreement, applicable Alaska laws, and all other legal requirements. DONE at Anchorage, Alaska and dated October 14, 2011. 7 - Daniel T. Seamount, Jr., Chair, Commissioner moo Alaska Oil and Gas Conservation Commission 0 *,,,.. t A a � i/ 4', ` p Cathy P oerster, ommissioner J. l ` g-' Alaska • it and • . onservation Commission !VAL. .F . i orm. -, Com 'ssioner ska 0 . d Gas Cons- - .tion 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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 AOGCC 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 AOGCC 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 AOGCC mails, OR 30 days if the AOGCC 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 AOGCC 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 AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC 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 AOGCC 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. i • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Associates Mark Wedman Hodgden Oil Company NRG Associates Halliburton President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 *\\\ 0 \\)40.\ • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Thursday, October 13, 2011 2:28 PM To: '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWellIntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts'; 'Brandon Gagnon'; ' Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'caunderwood'; 'Chris Gay'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; 'Elizabeth Bluemink 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com)" 'Jeanne McPherren'; 'Jeff Jones'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov)'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant (Iaura.gregersen @alaska.gov)'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester'; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov); 'Paul Figel'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart@alaska.gov); 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tim Mayers'; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl'; 'Vicki Irwin'; 'Walter Feather ly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (PCO); 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Eric Lidji'; 'Gary Orr; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lars Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; 'Wayne Wooster'; 'Wendy Wollf; 'William Van Dyke'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); 'Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov)'; 'Colombie, Jody J (DOA) (jody.colombie @alaska.gov); 'Crisp, John H (DOA) (john.crisp @alaska.gov); 'Davies, Stephen F (DOA) (steve.davies @alaska.gov); 'Foerster, Catherine P (DOA) (cathy.foerster @aiaska.gov)'; 'Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov); Herrera, Matt F (DOA); 'Johnson, Elaine M (DOA) (elaine.johnson @alaska.gov)'; 'Laasch, Linda K (DOA) (linda.laasch @alaska.gov); 'Maunder, Thomas E (DOA) (tom. maunder @alaska.gov)'; 'McIver, Bren (DOA) (bren.mciver @alaska.gov)'; 'McMains, Stephen E (DOA) (steve.mcmains @alaska.gov)'; Mumm, Joseph (DOA sponsored); 'Noble, Robert C (DOA) (bob.noble @alaska.gov)'; 'Norman, John K (DOA) (john.norman @alaska.gov)'; 'Okland, Howard D (DOA) (howard.okiand @alaska.gov)'; 'Paladijczuk, Tracie L (DOA) ( tracie .paladijczuk @alaska.gov)'; 'Pasqual, Maria (DOA) (maria.pasqual @alaska.gov)'; 'Regg, James B (DOA) (jim.regg @alaska.gov); 'Roby, David S (DOA) (dave.roby @alaska.gov)'; 'Saltmarsh, Arthur C (DOA) (art.saitmarsh @alaska.gov)'; 'Scheve, Charles M (DOA) (chuck.scheve @alaska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov)'; 'Seamount, Dan T (DOA) (dan.seamount @alaska.gov)' Subject: co635a Nicolai Creek Unit Attachments: co635a.pdf 1 CO • • 4 Aurora Gas, LLC www.aurorapower.com RECEivED September 7, 2011 SEP 0 7 2011 Mr. Daniel T. Seamount, Jr. M ` *,[ i & Gas cot Cession Chair, Commissioner t* Alaska Oil and Gas Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501 -3539 RE: Nicolai Creek Field, Undefined Gas Pool, Nicolai Creek Unit #10 Aurora Gas, LLC Permit No: 210 -127 (Revised) Dear Commissioner Seamount: Re: Docket # CO -11 -34. The application of Aurora Gas, LLC for an exception to the spacing requirements of 20 AAC 25.055, for the drilling, completion and regular production of a development gas well within 3000 feet of wells that are, or may be capable of, producing from the same pool. Aurora Gas, LLC (Aurora) is finalizing the drilling of the subject well and hereby respectfully requests an exception to one condition of the August 4 approval by the AOGCC of the APD, which states "Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception." While Aurora will not be in full compliance with regulation 20 AAC 25.055 until the spacing exception Conservation Order is approved, it is requested that Aurora be allowed to perforate prospective pay in the well prior to the hearing and approval of the subject spacing exception Conservation Order. This request is to perforate only (i.e., not test or produce) prior to approval of the Order and is based on economics: the plan is to complete the well with multiple selective completions, and to do so safely, requires a rig on the well. To release and demobilize the rig following drilling and to bring it back and rig up for the perforating and completion will cost an estimated additional $400,000- 500,000 compared to perforating and running the completion now before the rig is released following drilling. If this exception is granted, the plan would be to perforate using casing guns with overbalanced brine in the well, run the multiple packers on tubing, install the tree, and release the rig. The well would be swabbed in and tested following the approval of the spacing exception Conservation Order. The additional cost is to mobilize the rig back from the Three Mile Creek #3 well, rig it up, and demobilize a second time; all of this taking an additional 8 -12 days and costing $30,000 - 40,000 per day plus trucking. Aurora's request to allow perforating is also based on the following: 1) Aurora holds all the oil and gas leases within the 3000' radius of the bottom -hole location; 2) the spacing order was required due to the proximity of the well to the Nicolai Creek Unit #3 well, also operated by Aurora, not by distance from lease lines (i.e., the bottom -hole location is more than 1500' from all lease lines); and 3) the Mental Health Trust, the Lessor within the 3000' radius who was not originally given notice, does not object to the perforating prior to receiving the spacing exception (Aurora is the Lessee of the subject lease, MHT 6051 North Course Drive, Suite 200 • Houston, Texas 77072 • (713) 977 -5799 • Fax (713) 977 -1347 1400 West Benson Blvd., Suite 410 • Anchorage, Alaska 99503 • (907) 277 -1003 • Fax (907) 277 -1006 • • 9300066) —see attached copy of email from Mike Franger. Nonetheless, Aurora assumes all the liability of any protest to the spacing exception. This timing issue is a matter of an oversight on the part of Aurora— when the bottom -hole location was changed, we failed to realize that the notification of mineral owners within 3000' was required by 20 AAC 25.055(d)(1) and had not been done in the case of the Mental Health Trust. For the reasons given above, Aurora hereby respectfully requests the Commission's approval to perforate the subject well, but not test or produce, prior to the approval of the spacing exception Conservation Order. Please let me know of your decision as soon as practical, if possible by Friday, September 9 as the rig will be preparing to move by early next week, if Aurora is not allowed to perforate before approval of the Order. Thank you for your consideration. Sincerely, J. Edward (Ed) Jones Executive Vice President Aurora Gas, LLC Copies: Greg Jones & Mike Franger, Mental Health Trust AOGCC (4) • • Ed Jones From: Franger, James M (DNR) [mike.franger @alaska.gov] Sent: Wednesday, September 07, 2011 1:26 PM To: jejones @aurorapower.com Subject: NCU 10 Welt Ed, Thanks for the information describing the bottom hole location of the NCU No. 10 well. The TLO does not object to Aurora perforating the well in advance of receiving the spacing exception for this well, with the understanding that no testing or production will occur until the spacing exception issue is settled. Mike Franger Senior Resource Manager Trust Land Office 2600 Cordova Street, Suite 100 Anchorage, Alaska 99503 No virus found in this message. Checked by AVG - A \\ j . =[; Version: 10.0.1392 / Virus Database: 1520/3881 - Release Date: 09/06/11 1 4 N STATE OF ALASKA • NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ONI AHSING ORDER NO., CERTIFIED A O- 02214002 AFFIDAVIT INV ICE MUST OF PUBLICATION BE I TRIPLIC (PART TE S 2 OF THIS OWING FORM ADVERTI ) WITH ATTACHED COPY OF I1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jody Colombie August 29, 2011 ° Anchorage, AK 99501 PHONE PCN M 907 - 793 -1238 (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: ASAP o Peninsula Clarion P.O. Box 3009 EN Kenai, AK 99611 ITS ENTIRETY ON E TES DOUBLE LINES MUST BE PRINTED IN SPECIAL INSTRUCTIONS: Type of Advertisement Legal ❑ Display Classified ❑Other (Specify) SEE ATTACHED NICOLAI Creek #10 SPACING EXCEPTION 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 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 11 02140100 73451 2 3 4 REQUISITION D B DIVISION APPROVAL: J • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO- 11 -34. The application of Aurora Gas, LLC for an exception to the spacing requirements of 20 AAC 25.055, for the drilling, completion and regular production of a development gas well within 3000 feet of wells that are, or may be capable of, producing from the same pool. Aurora Gas, LLC, by a letter received August 24, 2011, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for an exception to the spacing requirements of 20 AAC 25.055 to drill the Nicolai Creek Unit No. 10 development gas well in the Nicolai Creek Unit within 3000 feet of wells are, or may be capable of, producing from the same pool. The proposed surface and bottom -hole locations of the well are as follows: Nicolai Creek Unit No. 10 Surface Location: 1799' from the north line and 1504' from the west line of Section 20, T11N, R12W, Seward Meridian (S.M.). Bottom -hole Location: 593' from the north line and 434' from the west line of Section 20, T11N, R12W, S.M. The Commission has tentatively scheduled a public hearing on this application for October 6, 2011 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 no later than 4:30 p.m. on September 19, 2011. 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 September 26, 2011. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7tn Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on October 4, 2011, except that, if a hearing is held, comments must be received no later than the conclusion of the October 6, 2011 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 September 20, 2011. Daniel T. S-amount, Jr. Chair, Commissioner a e' PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, r STATE OF ALASKA Notice of Public Hearing SS: STATE OF ALASKA Alaska Oil and.Gas Conservation Commission Re: Docket # C0- 11 -34. The application of Aurora Gas, LLC for an exception to the spacing requirements of 20 MC 25.055, for the drilling, completion and Denise Reece being first duly regular production of a development gas well within. 3000 feet of wells that are, or may be capable of, sworn, on oath deposes and says: producing -from the same pool. That I am and was at all times here Aurora Gas, LLC, by a letter received August 24, _2011,- requests the Alaska Oil and Gas Conservation Cornmi"seiOn `(Cmnmission) issue an order; for an in this affidavit mentions, Supervisor of exception to the spacing requirements" of 20 AAC 25.055 to drill the Nicolai Creek Unit No. 10 Legals of the Peninsula Clarion, a news development gas well in the Nicolai Creek Unit within 3000 feet of wells are, or may be capable of, producing paper of general circulation and published from the same pool. The proposed surface and bottom -hole locations of the well are as follows: at Kenai, Alaska, that the Nicolai Creek Unit No. 10 Public Hearing Surface Location: 1799' from the north line and 1504' from the west line of Section 20,111N, R12W, AO- 02214002 Seward Meridian (S.M.). Bottom -hole Location: 593' from the north line and a printed copy of which is hereto annexed was 434' from the west line of Section 20, T11N, Ri2W, S.M: published in said paper one each and The Commission has tentatively scheduled a public hearing on this application for October 6, 2011 every day for one successive and at 9:00 a.m, at the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, , consecutive day in the issues on the Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request following dates: must be filed with the Commission no later than 4:30 p.m. on September 19, 2011. September 4, 2011 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 4 .,./.7.44...e /f the hearing, call 793 -1221 after September 26, 2011. X In addition, written comments regarding this SUBSCRIBED AND SWORN to me before application may be submitted to the Alaska Oil and Gas Conservation Commission; at 333 West 7th Avenue, Suite 100, . Anchorage, Alaska 99501. t d. of September 2011 Comments must be received no later than 4:30 p.m. on October 4, 2011, except that, if a hearing is held, if I / ■, comments must be received no later than the NOTARY PUBLIC in favor for the conclusion of the October 6, 2011 hearin9. If, because of a disability, special accommodations State of Alaska. may be needed to comment or attend the hearing, contact the Commission's Special Assistant, Jody My Commission expires 26- Aug -12 Colombie, at 793 -1221, no later than September 20, 2011. Daniel T. Seamount, Jr. �S R USE Chair, Commissioner .• •., L PUBLISH: 9/4, 2011 9012/2072 . t%OTAgr : S ' usuc STATE OF ALASKA 1 NOTICE TO PUBLISHER • ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /f, O_02214002 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. R 333 West 7 Avenue. Suite 100 Jody Colomhie August 29. 2011 ° Anchorage_ AK 99501 PHONE PCN M 907 - 793 -1238 (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: ASAP Peninsula Clarion PO Box 3009 Kenai, AK 99611 ITS ENTIRETY ON THE BETWE S SHOWN. DOUBLE EN THE LINES MUST BE PRINTED IN SPECIAL INSTRUCTIONS: 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 2011, and thereafter for consecutive days, the last publication appearing on the day of , 2011, 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 2011, Notary public for state of My commission expires 02 -901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER • • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Associates Mark Wedman Hodgden Oil Company NRG Associates Halliburton President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 \\,s.\' • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Monday, August 29, 2011 3:42 PM To: '( michael .j.nelson @conocophil►ips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWeIIIntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Rafe; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts'; 'Brady, Jerry L'; 'Brandon Gagnon'; 'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'caunderwood'; 'Chris Gay'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; 'Elizabeth Bluemink'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laugh lin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov)'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant (laura.gregersen @alaska.gov)'; 'Marc Kovak'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart @alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler'; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl ; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (PCO); 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Eric Lidji'; 'Gary Orr; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; 'Wayne Wooster'; 'Wendy Wollf; 'William Van Dyke'; 'Aubert, Winton G (DOA) (winton.aubert @alaska.gov)'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); 'Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov)'; 'Colombie, Jody J (DOA) (jody.colombie @alaska.gov)'; 'Crisp, John H (DOA) (john.crisp @alaska.gov)'; 'Davies, Stephen F (DOA) (steve.davies @alaska.gov)'; 'Foerster, Catherine P (DOA) (cathy.foerster @alaska.gov)'; 'Grimaldi, Louis R (DOA) (Iou.grimaldi @alaska.gov)'; Herrera, Matt F (DOA); 'Johnson, Elaine M (DOA) (elaine.johnson @alaska.gov)'; 'Laasch, Linda K (DOA) (linda.laasch @alaska.gov)'; 'Maunder, Thomas E (DOA) (tom.maunder @alaska.gov)'; 'McIver, Bren (DOA) (bren.mciver @alaska.gov)'; 'McMains, Stephen E (DOA) (steve.mcmains @alaska.gov)'; Mumm, Joseph (DOA sponsored); 'Noble, Robert C (DOA) (bob.noble @alaska.gov)'; 'Norman, John K (DOA) (john.norman @alaska.gov)'; 'Okland, Howard D (DOA) (howard.okland @alaska.gov)'; 'Paladijczuk, Tracie L (DOA) ( tracie .paladijczuk @a►aska.gov)'; 'Pasqual, Maria (DOA) (maria.pasqual @alaska.gov)'; 'Regg, James B (DOA) (jim.regg @alaska.gov)'; 'Roby, David S (DOA) (dave.roby @alaska.gov); 'Saltmarsh, Arthur C (DOA) (art.sa►tmarsh @a►aska.gov)'; 'Scheve, Charles M (DOA) (chuck.scheve @a►aska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov)'; 'Seamount, Dan T (DOA) (dan.seamount @alaska.gov)' Subject: Nicolai Creek No. 10 Notice of Public Hearing Attachments: Nicolai Creek No. 10 Notice.pdf Samantha Fisher, Executive Secretary II Alaska Oil and Gas Conservation Commission (907)793 -1223 1 r • • -Aurora Gas, LLC www.aurorapower.com Dan Seamount, Chairman August 24, 2011 State of Alaska Oil and Gas Conservation Commission 333 W. 7 Avenue, Suite 100 RECEIVED Anchorage, AK 99501 Re: Application for Well Spacing Exception AUG ` 5 2111' Nicolai Creek Unit #10 Development Gas Well Alaska 011 & Gas Cent. GQmmissian Dear Mr. Seamount: Anchorage 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 Nicolai Creek Unit #10 ( "NCU 10 ") development gas well within 3,000 feet of other existing gas wells in the Nicolai Creek. The Nicolai Creek Unit is located on the west side of the Cook Inlet. A Permit to Drill ( #210 - 127 -0) was issued on Septembr 15, 2010, and Spacing Exceptions (CO 576 and CO 635), were issued in October of 2006 and September 2010, respectively. A plat depicting the surface location was attached under separate cover which shows the surface location being on the expanded Nicolai Creek Unit #3 well pad. The NCU 10 will be targeting gas in the Beluga Tsuga and Upper Tyonek Carya sands. These targeted sands are only those not open to production in the NCU 3 well. This well is needed to increase production from the Nicolai Creek Unit by accessing the referenced sands further to the northwest. The closest well to the proposed NCU 10 is the NCU 3 well approximately 2,000 feet to the west, at the surface. Aurora is the lessee and Unit Operator of the Nicolai Creek Unit and all surrounding oil and gas leases and adjoining governmental sections. The only affected landowners of this application is the State of Alaska, Department of Natural Resources (DNR), Alaska Mental Health Trust (MHT), and Cook Inlet Region Incorporated (CIRI). The Notice required by AOGCC regulation has been sent to the DNR, MHT and CIRI Affidavit attesting to this and the other facts contained herein is attached. Should questions arise in connection with this request, please contact me at the numbers below. Res ectfully Submitted A t . Edward Jones Executive Vice President attachments 1400 West Benson Blvd., Suite 410 • Anchorage, AK 99503 • (907) 277 -1003 • Fax: (907) 277 -1006 6051 North Course Drive, Suite 200 • Houston, TX 77072 • (281) 495 -9957 • Fax: (281) 495 -1473 • NOTICE OF APPLICATION FOR WELL SPACING EXCEPTION Nicolai Creek #10 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 20, Township 11 North, Range 12 West, of the Seward Meridian. It is planned to be drilled from a surface location approximately 1,800 feet from the north section line and 1,504 feet from the east section line, within the Nicolai Creek Unit located on the west side of the Cook Inlet. The nearest well capable of production from the same reservoir is the Nicolai Creek Unit #3, approximately 2,000 feet to the west. Aurora Gas, LLC is the lessee and Unit operator of the Nicolai Creek Unit. The State of Alaska, DNR is the subsurface owner and lessor, Cook Inlet Region Incorporated is the surface owner. Their address of record is: State of Alaska, DNR Division of Oil and Gas 550 W. 7 Avenue, Suite 1100 Anchorage, AK 99501 -3560 Attn: Ms. Temple Davidson, Unit Manager Cook Inlet Region Incorporated 2525 C' Street, Suite 500 P.O. Box 93330 Anchorage, AK 99509 -3330 Attn: Kim Cunningham, Director of Land and Resources There are no other affected owners, landowners, lessees or operators within 1,500 feet of the proposed Nicolai Creek Unit #10 development gas well. The Alaska Mental Health Trust has lands within 3,000' of the bottom -hole location which are under lease by Aurora Gas, LLC. The Application for Exception is attached to this Notice. Dated this 24 day of August, 2011, in Anchorage, Alaska. • • AFFIDAVIT IN SUPPORT OF THE NOTICE AND APPLICATION FOR WELL SPACING EXCEPTION Nicolai Creek #10 Development Gas Well I, J. Edward Jones, Executive Vice President for Aurora Gas, LLC hereby certifies that the required information, data and geographic portrayals contained 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 August 24, 2011, are true and correct, to the best of my knowledge. Further your affiant sayeth not. AURORA GAS, LLC _ _...,,,..„-_,,,,,...„ / z1 /1 1 Jiut 'ard Jones Dated ive Vice Preside ► IN THE UNITED STATES OF AMERICA ) ) ss. STATE OF ALASKA ) This certifies that on the 24th day of August, 2011, before me a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared J. Edward Jones, 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 therein mentioned. Witness my hand and official seal the day and year first above written. Notary Public 1 Notary P li 1 V I MARY NOVOTNY 1 ry c I State of Alaska I My Commission Expires: Sptember 17, 2013 I My Commission Expires Sep 17, 2013 0 CERTIFIED MAILT„, AURORA GAS, LLC �t 1400 W BENSON BLVD, SUITE 410 J o42J8o0877 W j ANCHORAGE, AK 99503 • _T ® X5.59 a :0 re s 08125/ 11 7005 0390 0600 6098 1565 =� + � M ailed From9 Iv __ COOK INLET REGION INC. ATTN: CHRIS GAY PO BOX 93330 ANCHORAGE, AK 99509 -3330 • CERTIFIED MAIL,. AURORA GAS, LLC 1 11111111111 lilt • 042j80087767 1400 W BENSON BLVD, SUITE 410 0Cci ANCHORAGE, AK 99503 u, ▪ c 08/25/11 ' Mailed From 99503 / 7005 0390 0000 6098 1541 • k- TRUST LAND OFFICE ATTN: MIKE FRANGER 718 L STREET, SUITE 202 ANCHORAGE, AK 99501 - I • CERTIFIED MAIL, AURORA GAS, LLC �}2Jgppg7767 %k 1400 W BENSON BLVD, SUITE 410 P . } i N $5 t® ANCHORAGE; AK 99503 1 • �,� 1 ' c 08 11 ' 7005 0390 0000 6098 1558 ." kr. � Naiied From9950 • STATE OF ALASKA, DNR ATTN: MR. TEMPLE DAVIDSON DIVISION OF OIL & GAS 550 W 7 AVE, SUITE 1100 ANCHORAGE, AK 99501 -3560 • •