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Home My WebLink AboutCO 6360 0 XHVZE Image Project Order File Cover Page 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 in ection of the file. C' c) -�3 i(o Order File Identifier Organizing (done) ❑ Two-sided III IIiIII II III II III ❑ Rescan Needed III IIIIII II II III III 7RES AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by ❑ Poor Quality Originals: a Large Scanner ❑ Other: OVERSIZED (Non -Scannable) ❑ Logs of various kinds: NOTES: ❑ Other:: BY: Maria Date: ` /s/ Project Proofing III IIIIIIIIIII II III BY: Maria Date: /s/ Mf Scanning Preparation x 30 = + = TOTAL PAGES 0UJ ® �� (Count does not include cover sheet) BY: Maria Date: /s/ Production Scanning III IIIIIIIIIII II III Stage 1 Page Count from Scanned File: 9 I (Count does include cov heet) Page Count Matches Number in Scanning Pre aration: YES NO BY: Maria Date: / (/ ao �� /s/ MIP 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 IIiIII III II IIIII ReScanned II I II iI II I I III I (III BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIIII III IIiI III 10/6/2005 Orders File Cover Page.doc 2 3. 4. 0 0 INDEX Conservation Order #636 LEA #1 July 26, 2010 Linc Energy Application for Spacing Exception July 29, 2010 Notice of Hearing, Affidavit of Publication The Frontiersman, Affidavit of Publication AK Journal of Commerce, Bulk mail list, e-mail list ----------------- Letter's from CIRI and Linc re: Hearing schedule September 14, 2010 Public Hearing Transcript September 16, 2010 Letter from Linc to CIRI re: location of LEA #1 September 20, 2010 Public Hearing Transcript Continuation from 9/14/10 Conservation Order #636 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: The Application of LINC Energy Operations ) Conservation Order No. 636 Inc. for an order granting an exception to ) 20 AAC 25.055(a)(2) to provide for the drilling, ) LEA #1 Gas Exploration Well completion and regular production of the LEA #1 ) gas exploration well within 1500 feet of ) October 13, 2010 an adjacent property line ) 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 13th day of October, 2010. BY DIRECTION OF THE COMMISSION ( du -a "Wi=' Jo y J. Co�Vbio S ial Asant to the Commission • E STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage Alaska 99501 Re: The Application of LINC Energy Operations ) Conservation Order No. 636 Inc. for an order granting an exception to ) 20 AAC 25.055(a)(2) to provide for the drilling, ) LEA #1 Gas Exploration Well completion and regular production of the LEA #1 ) gas exploration well within 1500 feet of ) October 13, 2010 an adjacent property line ) IT APPEARING THAT: 1. On July 26, 2010, LINC Energy Operations, Inc (LILAC), requested the Alaska Oil and Gas Conservation Commission (Commission) issue an order for an exception to the requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 gas exploration well within 1500 feet of an adjacent property line. 2. Pursuant to 20 AAC 25.540, the Commission published notice of opportunity for a public hearing in the Alaska Journal of Commerce on August 8, 2010and The Frontiersman on August 1, 2010. LINC has provided the Commission with copies of the notice of the application for exception to the well spacing requirements sent by certified mail to all owners, landowners, and operators, of all properties within 1500 feet of the anticipated productive intervals of the LEA #1 well. 3. A request for hearing was received by the Commission from CIRI. The hearings convened on September 14, 2010 and September 20, 2010. 4. At the hearing CIRI expressed concern regarding protection of its correlative rights. The hearing was continued until September 20, 2010 to allow LINC to provide additional information. 5. Based upon LINC's representation that it would not produce from the LEA #1 well without requesting and obtaining the prior written approval of the Commission, at the September 20, 2010 hearing CIRI withdrew its objection to LINC's request for an exception to 20 AAC 25.055(a)(2). FINDINGS: 1. LINC is the operator of the proposed LEA #1 gas exploration well. 2. The proposed LEA #1 is a gas exploration well with a surface and botton hole location of, 1169 feet FSL and 1895 feet FEL, Section 30, T16N, R3W, Seward Meridian. • 0 3. The LEA #1 well will target potential gas reservoirs in the Tyonek and Hemlock Formations. 4. LINC currently holds the State lease where the proposed LEA #1 will be located (ADL0039588). 5. The proposed location of the LEA #1 well is 1169 feet to the north of an adjacent lease owned by CIRI and leased to GeoPetro Resources Company (#C-061661). 6. The proposed location for the LEA #1 well lies at the highest point on the structure as mapped by LILAC. 7. Geologic and geographic features, including a bluff and a housing development, make moving the location of the LEA #1 well in order to comply with 20 AAC 25.055(a)(2) difficult. CONCLUSIONS: 1. An exception to spacing requirements of 20 AAC 25.055(a)(2) is necessary to allow drilling, completion and testing of the proposed LEA #1 gas exploration well. 2. The proposed LEA 41 gas exploration well is within 1500 feet of adjacent property owners. A spacing exception to allow drilling, completion, and testing of the LEA #1 well will not result in resource waste. 3. In order to protect the correlative rights of adjacent owners, landowners and operators, prior to production from the LEA #1 well, LINC must request and obtain the written approval of the Commission. NOW, THERFORE, IT IS ORDERED: 1. LINC's request for an exception to the requirements of 20 AAC 25.055(a)(2) is GRANTED. LINC may proceed with drilling, completion, and testing of the LEA #1 as long as it is in compliance with the terms of the lease, this order and Alaska Law. 0 • 2. LINC's request for approval of regular production of the LEA # 1 is DENIED. Production from the LEA #1 well may not be undertaken without the Commission's prior written approval. DONE at Anchorage, Alaska and dated October 13, 2010. Ze Daniel T. Seamount, r. Chair, Commissioner Alaska Oil and Gas Conservation Commission Vi7nd Commissioner Gs Conservation Commission Alaska"01 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. Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, October 14, 2010 1:31 PM To: 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood@marathonoil.com; 'Dale Hoffman'; David Lenig; 'David Spann'; Frederic Grenier; 'Gary Orr'; 'Jason Bergerson'; Jerome Eggemeyer; 'Joe Longo'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; 'Sandra Lemke'; Talib Syed; 'Tiffany Stebbins'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2@mtaonline.net);(michael.j.nelson@conocophiIlips. com); (Von. L. Hutchins@conocophillips.com); Alan Dennis; alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; dapa; Daryl J. Kleppin; Dave Matthews; David Boelens; David House; 'David Spann'; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; Delbridge, Rena E (LAA); 'Dennis Steffy'; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; 'Greg Duggin'; Gregg Nady; gspfoff; Harry Engel; Jdarlington (jarlington@gmail.com); 'Jeanne McPherren'; Jeff Jones; Jeffery B. Jones Qeff.jones@alaska.gov); 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley (mark.hanley@anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'Michael Dammeyer'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike) 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'; 'Rader, Matthew W (DNR)'; 'Randall Kanady'; 'Randy L. Skillern'; 'rob.g.dragnich@exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott, David (LAA); 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'Suzanne Gibson'; tablerk; Tamera Sheffield; Taylor, Cammy O (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); Winslow, Paul M; Yereth Rosen; Aubert, Winton G (DOA); Ballantine, Tab A (LAW); Brooks, Phoebe; Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (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); Shartzer, Christine R (DOA) Subject: CO 636 (LEA #1 Exploratory); and CO 637 (Cohoe Unit #1) Attachments: co637.pdf; co636.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 9.9501 (907)793-1221 (phone) (907)276-7542 (fax) 0 0 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 Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 408 18t" Street President 6900 Arctic Blvd. Golden, CO 80401-2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Schlumberger CIRI Drilling and Measurements Land Department 795 Baker Oil hoofs 2525 Gambell St, #400 P.O. Box 93330 E. 94 Ct. Anchorage, Anchorage, AK 99503 Anchorage, AK 99503 Anchorage, AK 99515-4295 Jill Schneider Ivan Gillian US Geological Survey Gordon Severson 9649 Musket Bell Cr. #5 3201 Westmar Circle Anchorage, AK 99507 4200 University Drive Anchorage, AK 99508-4336 Anchorage, AK 99508 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 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99701 Soldotna, AK 99669-2139 Richard Wagner Bernie Karl North Slope Borough P.O. Box 60868 K&K Recycling Inc. P.O. Box 69 Fairbanks, AK 99706 P.O. Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 114-516 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: Daniel T. Seamount, Chair Cathy Foerster John K. Norman In the Matter of Linc Energy Operations, Inc., requesting an order for the exception of spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on Lease #390588 in Section 30, T16N, R3W, Seward Meridian ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska September 20, 2010 10:30 o'clock a.m. VOLUME II PUBLIC HEARING BEFORE: Daniel T. Seamount, Chair Cathy Foerster, Commissioner John K. Norman, Commissioner R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S (On record - 10:30 a.m.) CHAIR SEAMOUNT: On the record. I'd like to call this hearing to order. Today is September 20th, 2010; the time is 10:30 a.m. We're at the offices of the Alaska Oil & Gas Conservation Commission located at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska. To my left is Commissioner Cathy Foerster, to my right is Commissioner John Norman and I am Dan Seamount, the Chair. This is a hearing that has been continued for the second time from September 14th, 2010. If anybody has special needs please see the office assistant, Samantha Fisher, who's in the back. R & R Court Reporting will be recording the proceedings. You can get a copy of the transcript from R & R Court Reporting. We'd like to remind anyone testifying to speak into both microphones so that the court reporter can get a good recording and so the people in the back of the room can hear. This is Docket No. CO-10-13 and Linc Energy Operations has requested the Alaska Oil & Gas Conservation Commission to issue an order for the exception to spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well which is located on Lease ADL #390588 in Section 30, T16N, R3W, Seward Meridian. The proposed surface and bottom hole locations of R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 30 1 2 3 4 5 6 7 8 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the well is 1,895 from the east line and 1,169 feet from the south line. Notice of this hearing was published on August 1st, 2010 in the Frontiersman, August 8th, 2010 in the Journal of Commerce as well as the State of Alaska on-line notices and the AOGCC web site. The AOGCC received one comment from Cook Inlet Region, Incorporated. This hearing is being held in accordance with 20 AAC 25.540, of the Alaska Administrative Code. The hearing will be recorded. Let's see, looking at the sign in sheet and it looks like just one person's going to testify is that correct? MS. FEIGE: Yes. MS. CUNNINGHAM: I believe I wrote yes also. CHAIR SEAMOUNT: Okay. Well, unless there's any objection we'll start with the order of who signed in yes. Is that okay with both parties? (No audible response) CHAIR SEAMOUNT: Okay. Please raise your right hand. Okay. (Oath administered) MS. FEIGE: I do. CORRI FEIGE called as a witness on behalf of Linc Energy Operations, R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14' 15 16 17 18 19 20 21 22 23 24 25 testified as follows on: DIRECT EXAMINATION CONTINUED CHAIR SEAMOUNT: Thank you. Please state your name, who you represent and proceed. MS. FEIGE: All right. My name is Corri Feige, I'm Alaska Project Manager for Linc Energy Operations. When we convened the hearing last week on the 14th of September we came away with a request for Linc to provide data to CIRI to have them verify the location of the LEA #1. Upon review of that data it was discovered that there is a nondisclosure CA agreement which prohibits Linc from distributing or disclosing that data. We contacted Ms. Cunningham at CIRI and sent a letter of follow-up to that -- to that end explaining the situation with that data. And at this time we have copies of that letter for the Commission if you would like. CHAIR SEAMOUNT: We'll enter this in the record, a letter dated September 16th, 2010 from Linc Energy to Ms. Kim Cunningham of Cook Inlet Region, Incorporated. Okay. MS. FEIGE: Okay. Thank you. And essentially what we once again expressed to CIRI was that we're very interested in understanding how they believe that their interest may be harmed by the placement of the LEA 1. It is neither Linc's intent nor in Linc's interest to cause issues for the rights or surrounding landowners, that all Linc is trying to do is get R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 32 1 2 3 4 5! 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 out and make a good solid test of that structure to determine if a resource is present and we believe that the LEA 1 program as proposed achieves both of those goals. CHAIR SEAMOUNT: Commissioner Norman, do you have any questions, comments? COMMISSIONER NORMAN: Yes. I think you've asked the adjacent owner that your proposed project, the hole abuts, to state how they may be harmed and as I understood it what they asked for is some additional information so that they could determine how they're going to be harmed. And now I understand you can't provide that because of a nondisclosure agreement? MS. FEIGE: That is correct. We cannot provide the data. What we were able to provide was the line number, it is brokered data. We were able to provide the line number and the physical location of that line of data that's germane to the LEA program. COMMISSIONER NORMAN: And without going into any details on what you can't disclose, but who is your nondisclosure agreement with? MS. FEIGE: It would be with the broker from whom we purchased the data which I believe is Seismic Exchange. COMMISSIONER NORMAN: Well, can you state who it is with? MS. FEIGE: Yeah, I believe it is Seismic Exchange. COMMISSIONER NORMAN: Okay. To the best of your knowledge it's Seismic Exchange. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 33 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17' 18 19 20 21 22 23 24 25 MS. FEIGE: Correct. It's..... COMMISSIONER NORMAN: All right. And have you asked them if they would agree to this limited waiver to -- given the fact that you're asking us to override the general statewide regulations and do something exceptional, have you asked them for a waiver? MS. FEIGE: That I do not know. I went back to my legal team who advised me that we could not disclose that data because of the agreement in place with the broker. COMMISSIONER NORMAN: Okay. Very well. I have nothing more. CHAIR SEAMOUNT: Commissioner Foerster. COMMISSIONER FOERSTER: Not right now, maybe later. CHAIR SEAMOUNT: Okay. We might later. Thank you, Ms. Feige. Please hang around in case we have further questions of you. Okay. The next one to testify, please raise your right hand. (Oath administered) MS. CUNNINGHAM: Yes. KIM CUNNINGHAM called as a witness on behalf of CIRI, testified as follows on: DIRECT EXAMINATION CONTINUED CHAIR SEAMOUNT: Thank you. Please state your name, who you represent and proceed. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS CUNNINGHAM: My name is Kim Cunningham, I'm representing CIRI, I'm the Land & Resources Director for CIRI. As you heard, both Corri Feige and I tried to work through issues related to accessing the data. Late last week we -- the steps, I guess, that CIRI has taken at this point are to -- once she indicated that there was an inability to share the data because of a confidentiality agreement which, you know, I certainly understand that many times that's how that works and you can't hand things over. So what we've tried to do is contact our lessee, Geopetral, to find out if they actually have any seismic data or interpretations that they can share with CIRI that would be on our lease acreage that may allow us to understand this structure better. At this point we have not heard anything back from them so I don't -- still don't have anything to look at. We did take a look at the seismic line as it relates to the location of the LEA #1 well. I did forward the picture of that to David Hite who basically said, you know, that's great to see that seismic line, but it doesn't really tell me enough technical information about this structure to know whether there's -- you know, to answer the questions that we would have about whether this is a good drilling location or not. When I inquired last week about whether the seismic would be available through a broker there wasn't any indication to me about who that broker might be so I've also asked Geopetral if R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 they can forward to me the name of the broker. It's possible that CIRI could go enter into an agreement with that broker and acquire the seismic line ourselves and we would certainly be willing to do more legwork to look at the data and understand what the structure actually looks like. The only thing that in going back through our lease file to try to understand a little bit more about the well and the spacing exception and where the structure is at, the only other thing that I could find in my files was that there was some indication that the structure was an 11,400 acre structure which raises even more questions in our minds as far as being able to look at the data. And so we -- you know, we come before the Commission this morning and apologize for having people convene again this morning, but we really would like to have an opportunity to see some technical data before we move forward with this issue. So I'm definitely prepared to try to gather that, whether that's through a seismic broker or whatever we have to do. CHAIR SEAMOUNT: Thank you, Ms. Cunningham. Commissioner Foerster. COMMISSIONER FOERSTER: You said that your consultant told you that he didn't have enough information to determine if Lines drilling location is a good one or not. Why does CIRI need to determine whether Linc is drilling in a good location or not. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 36 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. CUNNINGHAM: Well, as I stated last time we convened the hearing, we are concerned about correlative rights and we don't -- we don't have any data in our possession that allows us to understand how we might be affected by that. COMMISSIONER FOERSTER: So how does the quality of Linc's drilling location selection affect your correlative rights? MS. CUNNINGHAM: It -- I'm going to look at the notes that I have from visiting with our technical consultant about that, but he said basically we were provided with the location of a single seismic line and that seismic line does not pass through the well location. So that gives us questions about the orientation of the structure, it gives us questions about whether there is an anticline with the cross cutting fault, is there a tilted fault block, those were the kinds of questions that came to him as he was trying to look at this for us. COMMISSIONER FOERSTER: Okay. CHAIR SEAMOUNT: Commissioner Norman. COMMISSIONER NORMAN: Yes. Ms. Cunningham, because it was indicated last time one thing that's puzzling is the absence of your lessee here and your lessee, I believe the file reflects, did receive notice some time ago of these proceedings. We would interpret silence that your lessee has no objection to going forward. And I'm, again, finding that curious if you as a landowner are concerned. You pick the lessee, they generally have an obligation, a good faith covenant to develop, they have R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 an obligation to protect you against your tract being drained and yet they're not here. And that is the cause as I see it of the delay, were they here I think that -- and had they been here last time, I think this would be a more orderly proceedings. And I somewhat am frustrated that we're shadowboxing while you try to contact your lessee and I'm puzzled again why it would take that long, I mean, the telephone exists, you certainly know where they are. So tell me what efforts have you made to contact your lessee? MS. CUNNINGHAM: I have sent my lessee e-mail with read and reply receipts so that I would an understanding of whether he received the e-mail. We do not have any indication that our lessee has a current contact person here in Anchorage or an office here in Anchorage. So what I can tell you is to repeat the same -- the scenario that has happened is that the lessee intended to dispose of the lease when he disposed of the other assets that he had in Anchorage and that did not happen from a CIRI standpoint, the assignment did not take place. And I do not know why our lessee is not present, I am trying to establish communication with him and see if we can get data from the lessee. COMMISSIONER NORMAN: True. Thank you. Is it possible that someone with a cell phone and the number of the lessee, if we took a five minute recess, could dial and speak to the R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 s 1' 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 lessee right now? MS. CUNNINGHAM: We can try. MS. FEIGE: If I could add, we did receive a call from Stuart Doshee of Geopetral just shortly after they received the notification letter and I was looking through my notes to determine what day I received that call on and I'm just not finding it at the moment. But they did call us to -- said they have received the notification letter, just asked questions about the location of the well, what the anticipated spud date was and just verified the information in the letter and that was the extent of the conversation and we've heard no more from them. COMMISSIONER FOERSTER: So they do have a phone. COMMISSIONER NORMAN: Well, Ms. Cunningham, last time I understood Ms. Feige, and I'd ask her to correct me if I misstate it, to acknowledge that if a discovery is made then this matter would come back to the Commission and then there would be presumably the normal pattern is there's a pooling agreement, parties enter into an agreement. At that time before you would enter into an agreement you would certainly have access to something better than the seismic, you'd have some actual results from the drilling. So right now insofar as correlative rights are concerned, if you know that the Commission would continue to retain jurisdiction and would not allow regular production until there has been R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 M 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 some agreement reached for this pool as is determined to exist, does that ease any of your concerns? MS. CUNNINGHAM: Yes, that absolutely would ease my concerns, yes. MS. FEIGE: And I would like to note as well that the Commission does have the data, the confidential data, that it was a part of our 401 application to drill. And so the data -- the Commission does have before it the information on the structure and on the location. COMMISSIONER NORMAN: Very well. I don't have any further questions for them. CHAIR SEAMOUNT: Do we need to take a recess at this point? COMMISSIONER FOERSTER: Yeah, I thought Ms. Cunningham was going to make a phone call while we took a recess. CHAIR SEAMOUNT: Okay. All right. We'll take a 10 minute recess. We'll return at 10:55. Off the record. (Off record - 10:45 a.m.) (On record - 10:55 a.m.) CHAIR SEAMOUNT: Back on the record at 10:55 a.m. Do either of the parties have any further statements to make? Ms. Cunningham. MS. CUNNINGHAM: I would like to let the Commission know that we did attempt to make that phone call to Stuart Doshee, he was in a meeting and could not be pulled out of that R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 we 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 meeting. Given the situation that we have at hand today I think what we would like to do is withdraw our objection to the spacing exception and, you know, have that subject to the requirements that you mentioned, Commissioner Norman, and that way they could proceed with the drilling and I think all parties would ultimately be satisfied with the results of that. MS. FEIGE: And also I would just like to state that, you know, Linc is very comfortable in coming back before the Commission if we can't work this out amicably and, you know, we can come back and revisit this after the well is drilled. We're happy to work it out that way and come back again. CHAIR SEAMOUNT: Well, you will if you make a discovery. MS. FEIGE: Yeah, we'll come back and bring doughnuts. CHAIR SEAMOUNT: Okay. Commissioner Norman, do you have any statements or questions? COMMISSIONER NORMAN: I have nothing further. CHAIR SEAMOUNT: Commissioner Foerster. COMMISSIONER FOERSTER: I have a question. I'm assuming that Geopetral has a valid lease with you guys? MS. CUNNINGHAM: Yes, they do. COMMISSIONER FOERSTER: Okay. CHAIR SEAMOUNT: Okay. Then I guess it's appropriate to adjourn this hearing and we will have our decision our shortly. Thank you for..... MS. CUNNINGHAM: Thank you for your time. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 41 1 CHAIR SEAMOUNT: Thank you. 2 (Recessed - 10:57 a.m.) 3 (END OF PROCEEDINGS) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 42 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) )ss. 3 STATE OF ALASKA ) 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing, Volumes I and II, held on September 14th and September 20th, 2010, was 7 taken by William P. Rice, commencing at the hour of 9:00 and 10:30 o'clock a.m, respectively, at the Alaska Oil and Gas 8 Conservation Commission of Alaska in Anchorage, Alaska; 9 THAT this Public Hearing, as heretofore annexed, is a true and correct transcription of the proceedings taken by William 10 P. Rice and transcribed by Lynn Hall. 11 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 29th day of September 2010. 12 13 Notary Public in ana for Alaska 14 My Commission Expires:10/10/10 15 16 17 18 19 20 21 22 23 24 25 R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 M ft STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION LEA #1 Spacing Exception September 20, 2010 at 10:30 am Continuation Hearing from September 14, 2010 NAME AFFILIATION PHONE # TESTIFY (Yes or No) C 12 ( cloS--q A30 ,rnC��►�)��ur�m C(�( Uq H r5 Cd C��1 2,&3 - 55i ,Ja 45 w r `�. IL 16 September 2010 Ms. Kim Cunningham Director, Land and Resources Cook Inlet Region, Inc. 255 C Street, Suite 500 PO Box 93330 Anchorage, AK 99509-3330 Dear Kim Thank you for talking with me Wednesday morning about the seismic data coverage for the LEA #1 location. As we discussed, after the AOGCC hearing on Monday, we determined that Linc is bound by a non -disclosure/ confidentiality agreement that prohibits Linc from disclosing or distributing the geophysical data relevant to the prospect we are drilling at the LEA #1 well. As I stressed during our call, Linc is very interested in understanding how GIRT believes its interests may be harmed by the drilling of the LEA #1 at the proposed location. Linc's intent is not to create issues for surrounding landowners but simply to make a geologically sound test of the LEA prospect to determine if a resource is present. We believe the LEA #1 program as proposed achieves both of those missions. If the LEA #1 well is successful, additional drilling would likely be required to delineate the reservoir. CIRI would receive notice of that delineation activity. Additionally, as was stated at the September 10 hearing, with success at the LEA #1, Linc would be required to seek unitization of the reservoir for the protection of all affected mineral interest owners in the reservoir. CIRI would receive notice of any unitization proceeding. Moreover, none of Lines proposed lease activities would prevent CIRI and/or its lessee from conducting drilling operations on the CIRI lease. Linc is keen to establish better communication between our two companies In an effort to resolve any potential issues as we move forward with the LEA #1 program. As Linc communicated to CIRI in the letter delivered to your offices on 6 May 2010, we would greatly appreciate the opportunity to sit dawn with you to discuss our plans in Alaska and how we might work together on endeavors like the LEA #1> Sincerely, Linc Energy Operations, Inc. Corri Feige Project Manager- Alaska _ 39 Wes! n(S'L. Clean r Coal Technology "ri;,,h;-,r 3ti„ AK `tf,503 Casper, til,Y 82 601 Denver, ('10 802 2 .c,- r_i.au - pp�� > q r�/'� *+ ..,;1,. , ` 68 C)t1�.} _ ..� f * t t' f } aJki3- 62305 I v':, r 868 8881 307 472 2 74 303 62:3 CJ�47 i 1 2 3 4 5 6 7 8 9 10 11 12' 13 14 15 16 17 18 19 20 21 22 23 24 25 0 0 ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: Daniel T. Seamount, Chair Cathy Foerster John K. Norman In the Matter of Linc Energy Operations, Inc., requesting an order for the exception of spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on Lease #390588 in Section 30, T16N, R3W, Seward Meridian ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska September 14, 2010 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: Daniel T. Seamount, Chair Cathy Foerster, Commissioner John K. Norman, Commissioner R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 TABLE OF CONTENTS 2 Opening remarks by Chair Seamount Testimony by Ms. Feige 3 Testimony by Ms. Cunningham 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03/05/30 07/32 13/34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S (On record - 9:02 a.m.) CHAIR SEAMOUNT: On the record. I'd like to call this hearing to order. Today is September 14th, 2010; the time is 9:02 a.m. We're located at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska which are the offices of the Alaska Oil & Gas Conservation Commission. I'd like to introduce the bench, to my left is Commissioner Cathy Foerster, to my right is Commissioner John Norman and I am Dan Seamount, the Chair. If anyone has special needs please see the office assistant, Samantha Fisher, who's at the front desk most of the time. R & R Court Reporting will be recording the proceedings. You can get a copy of the transcript from R & R Court Reporting. We'd like to remind any of those that are testifying to speak into the microphone so that persons in the rear of room can hear and so the court reporter can get a clear recording. This is Docket No. CO-10-13 and Linc Energy Operations, Incorporated has requested the Alaska Oil & Gas Conservation Commission to issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on Lease ADL #390588 in Section 30, T16N, R3W, Seward Meridian. The proposed surface and bottom hole locations of the well are as follows. For the LEA #1, the R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 surface and bottom hole locations are proposed to be 1,895 from the east line, 1,169 feet from the south line. And as I said that's in Section 30, T16N, R3W, Seward Meridian. Notice of this hearing was published on August 1st, 2010 in the Frontiersman, August 8th, 2010 in the Journal of Commerce as well as the State of Alaska on-line notices and the AOGCC web site. The AOGCC received one comment from Cook Inlet Region, Incorporated. This hearing is being held in accordance with 20 AAC 25.540, of the Alaska Administrative Code. The hearing will be recorded. I'm looking at the sign up sheet for right now and it doesn't look like we have anyone here to testify. Because of the scheduling conflict with one of the parties, both parties have agreed to continue this hearing until 2:30 this afternoon and I don't see anyone -- is there anyone in the audience who can't make the 2:30 meeting that would like to make a statement at this time? (No comments) CHAIR SEAMOUNT: Hearing none, does Commissioner Norman have any comments? COMMISSIONER NORMAN: I have no comments. CHAIR SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: No. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR SEAMOUNT: Okay. Hearing none, we will continue this hearing at 2:30 this afternoon in the same offices. (Off record - 9:06 a.m.) (On record - 2:30 p.m.) CHAIR SEAMOUNT: Okay. On the record. I'd like to call this hearing to order. Today is September 14th, 2010; the time is 2:30 in the afternoon. We're located at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska which are the offices of the Alaska Oil & Gas Conservation Commission. This is a continuation of the hearing that started this morning. I'd like to introduce the bench, to my right is Commissioner John Norman, to my left is Cathy Foerster, and I am Dan Seamount, the Chair. If anyone has any special needs please see our office assistant, Samantha Fisher, and she'll provide you with assistance. R & R Court Reporting will be recording the proceedings. You can get a copy of the transcript from R & R Court Reporting. We'd like to remind anyone testifying to speak into both microphones so that persons in the rear of room can hear and so the court reporter can get a clear recording. This is Docket No. CO-10-13, Linc Energy Operations, Incorporated requested the Alaska Oil & Gas Conservation Commission to order an exception to the spacing requirements of R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 a 1'' 21' 31I' 4' 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on Lease ADL #390588 in Section 30, T16N, R3W, that's in Seward Meridian. The proposed surface and bottom hole locations of the well is as follows. For the LEA #1, it's 1,895 feet from the east line and 1,169 feet from the south line of Section 30, T16N, R3W, Seward Meridian. Notice of this hearing was published on August 1st, 2010 in the Frontiersman, on August 8th, 2010 in the Journal of Commerce and it was also published on the State of Alaska on- line notices and the AOGCC web site. The AOGCC has received one comment from Cook Inlet Region, Incorporated. This hearing is being held in accordance with 20 AAC 25.540, of the Alaska Administrative Code. The hearing will be recorded. Okay. I'm looking at the sign up sheet and I see one person from Linc who would like to testify. And I don't see -- is there anyone else that wishes to testify today? MS. CUNNINGHAM: Yes. CHAIR SEAMOUNT: Okay. I see one and you're with CIRI? MS. CUNNINGHAM: Yes. CHAIR SEAMOUNT: Okay. I guess we'll go in the order of the sign in so we'll start with Linc. And I guess you're giving sworn testimony, is that correct? MS. FEIGE: Very good, yes. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 I • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR SEAMOUNT: Okay. Please raise your right hand. (Oath administered) MS. FEIGE: I do. CORRI FEIGE called as a witness on behalf of Linc Energy Operations, testified as follows on: DIRECT EXAMINATION CHAIR SEAMOUNT: Okay. Please state your name and who you represent. MS. FEIGE: My name is Corri Feige, I'm Alaska Project Manager for Linc Energy Operations. CHAIR SEAMOUNT: Do you wish to be considered as an expert witness? MS. FEIGE: Sure. CHAIR SEAMOUNT: Okay. Let us know what the subject is and your qualifications. MS. FEIGE: Very good. The subject of my response here is the filing of the application for the spacing exception on the LEA #1 exploratory natural gas well as located in the record already. Chairman Seamount, my qualifications are I've had three years of experience with this project, came to the project and to Linc Energy from the previous leaseholder and I have history with the location, the leases and the planning and execution of the LEA #1 program. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 1!, 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 My comments today are strictly for the record to explain..... CHAIR SEAMOUNT: Excuse me..... MS. FEIGE: Oh, I'm sorry. CHAIR SEAMOUNT: .....Ms. Feige. And what is your expertise, your education, your experience, what's your discipline? MS. FEIGE: My -- I am a geophysicist. CHAIR SEAMOUNT: Okay. And, I guess, what was your degree? MS. FEIGE: Bachelor of Science degree. CHAIR SEAMOUNT: From which school? MS. FEIGE: Montana School of Mines, College of Engineering. CHAIR SEAMOUNT: Okay. Commissioner Norman, do you have any questions or comments? And I apologize, I made a faux pas, I didn't ask if either of the Commissioners have any comments before we started into this so this is your opportunity to do that too. COMMISSIONER NORMAN: Your three years of experience with this project..... MS. FEIGE: Yes. COMMISSIONER NORMAN: .....consists of your time with Linc now and then how much prior and with what employer before that? MS. FEIGE: My time prior to was as a consultant to R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Geopetral Resources, the previous owner of the leased lots that were purchased by Linc Energy. COMMISSIONER NORMAN: Thank you. CHAIR SEAMOUNT: Commissioner Foerster. COMMISSIONER FOERSTER: I have no questions or comments. CHAIR SEAMOUNT: Do we have any objections to designating Ms. Feige as an expert witness? COMMISSIONER FOERSTER: Well, I think -- what -- you want to be recognized as an expert in geophysics or in..... MS. FEIGE: No, just in representation of the project on behalf of Linc. I don't know if that qualifies as expert witness per se. COMMISSIONER FOERSTER: Well, what we look for in an expert witness is expertise in a subject matter..... MS. FEIGE: Uh-huh. COMMISSIONER FOERSTER: .....that will be discussed and it's typically a technical subject matter. MS. FEIGE: Uh-huh. COMMISSIONER FOERSTER: So I'm wondering if recognizing you as an expert witness is appropriate or not. MS. FEIGE: Yeah, possibly not. Yeah. CHAIR SEAMOUNT: Well, we could recognize her as an expert as representing her employer. MS. FEIGE: And it's -- and..... COMMISSIONER FOERSTER: No. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 II' 18 19 20 21 22 23 24 25 MS. FEIGE: .....designation of an expert witness is probably not necessary for my testimony anyway. COMMISSIONER FOERSTER: I don't think it's appropriate. CHAIR SEAMOUNT: Okay. MS. FEIGE: Yeah. CHAIR SEAMOUNT: All right. Well, then please proceed. I apologize..... MS. FEIGE: Okay. CHAIR SEAMOUNT: .....for wasting everybody's time. MS. FEIGE: No, no, and -- and my apology. For the record Linc Energy Operations has applied for the routine spacing exception on the LEA #1 exploratory well in order to -- to test the structure that's been identified in geological and geophysical data that we have for the project area. The location of the LEA 1 represents the best location for a geologic test of the structure, it places us at the high point, it places us very near to an existing seismic line and operationally the LEA #1 location is also optimal for Linc because in searching for a location for the well Linc looked for a location that would create a minimum of disturbance to private property owners in the area. This 10 acre parcel on which the LEA #1 is located was for sale at the time that Linc started looking for a parcel. Linc acquired the parcel and is able to then establish the pad and all -- all operational aspects on surface land that is owned by the company, therefore R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19, 20 21 22 23 24 25 no surface use authorizations are required and there's no disturbance or damage being done to private property on the lease surrounding the LEA 41. It is a vertical exploratory well and has been placed as far north on the 10 acre parcel purchased by Linc as could be accommodated by the bounds of that property. If we move to the north to expand out to 1,500 feet it would place the LEA #1 in our opinion too close to what is an apparent cross cutting structure on the north side of the seismic line. And so geologically we wish to avoid the complexities that can come and possible bad hole conditions that can come from being that close to the structure. So the LEA #1, both operationally and geologically, represents the best location for the exploratory well and the test of this structure. CHAIR SEAMOUNT: Thank you, Ms. Feige. Commissioner Foerster, do you have any questions? COMMISSIONER FOERSTER: No, not at this time. CHAIR SEAMOUNT: Commissioner Norman. COMMISSIONER NORMAN: I just want to follow-up on what you were talking about, the optimal position, and it appears this is driven mainly by the surface location that you've been able to secure? MS. FEIGE: Correct. COMMISSIONER NORMAN: The lease would give you ample room to..... R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 • E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. FEIGE: Yes. COMMISSIONER NORMAN: MS. FEIGE: Uh-huh. .....to move it around? COMMISSIONER NORMAN: And then we're talking about 331 feet here, 32 feet, whatever. So you have considered whether that would be feasible to adjust it and explain to me again why you could not move the location that distance..... MS. FEIGE: To the north. COMMISSIONER NORMAN: .....331 feet, that's what about one football field, a little more? MS. FEIGE: If you move 330 feet to the north from the current location topographically there is a steep ridge that rolls off and -- and, you know, our interpretation is expression of structure through topography, would be that we're getting close to the -- the structure that appears to present itself in the data. And so from an operational standpoint we would have to move much, much farther north to avoid that ridge and get into an area where we can establish the pad. That also puts us squarely in the middle of an area to the north where the private property owner is building several houses for their family. So it would require much greater than a simple 330 foot move and additional movement to the north puts us into the Goose Creek wetland area. COMMISSIONER NORMAN: And just a follow-up question, the simple movement to the north a little more than one football R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 l 2, 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 field and then the use of directional drilling wouldn't..... MS. FEIGE: Use of directional in our -- in our opinion is not feasible economically. For this we actually did look at several other locations in the area that we thought possibly could be reached directionally for better surface locations, but given the depth of this target we don't believe that it's feasible. COMMISSIONER NORMAN: Thank you. MS. FEIGE: Uh-huh. CHAIR SEAMOUNT: Thank you, Commissioner Norman. Commissioner Foerster, you get another chance to ask questions. COMMISSIONER FOERSTER: Commissioner Norman asked my question. CHAIR SEAMOUNT: Okay. Okay. I have no further questions. If you'd please stay until the end of the hearing in case we need to call you back for more questions. MS. FEIGE: Okay. CHAIR SEAMOUNT: Thank you, Ms. Feige. Okay. We'll take the next person to testify. Please raise your right hand. (Oath administered) MS. CUNNINGHAM: Yes, I do. KIM CUNNINGHAM called as a witness on behalf of CIRI, testified as follows on: DIRECT EXAMINATION CHAIR SEAMOUNT: Thank you. Please state your name, who R & R C 0 U R T R E P 0 R 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 13 �r • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you represent and whether you will be giving any technical testimony. MS CUNNINGHAM: My name is Kim Cunningham, I'm the Director of Land & Resources for Cook Inlet Region, Incorporated, known as CIRI. I will not be giving any technical testimony, I'm simply here to ask some questions on behalf of the landowner. CHAIR SEAMOUNT: Okay. Please proceed. MS. CUNNINGHAM: Okay. The reason that we requested the hearing is that we currently have the lease that is depicted on the map that was provided on LEA 41 well location, the lease proximity map. The lease that is listed as Geopetral lease C- 061661 in that map is a lease that CIRI has currently with Geopetral. At least at this point in time that lease has not been terminated by us or by them. And Geopetral had approached CIRI to take the lease out because they wanted to drill a well at this site and had already prepared a pad and drilled a water well in order to drill that well. And so I am simply coming forward asking to understand a little bit more about what has happened with the -- you know, how the spacing exception affects our current situation with a lessee who had intended to drill a well on this property. So I would like to understand the situation a little bit better. COMMISSIONER FOERSTER: Well, let me make sure I understand you because I'm not sure I do. You leased your land R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to Geopetral and as far as you're concerned they are still the leaseholder? MS. CUNNINGHAM: Yes. COMMISSIONER FOERSTER: But and so you don't have any record of the lease being farmed out to Linc, but now Linc is wanting to drill a well on land that you thought you had leased to Geopetral? MS. CUNNINGHAM: No, it's not the same land that they're planning to drill on, it's this -- it's the -- the position on the map that they're showing as being 1,169 feet away from the boundary. COMMISSIONER FOERSTER: Okay. So the land -- okay. Okay. So does Geopetral still have the lease that -- on the land that you're referring to and that's not part of anything that you guys acquired from Geopetral? MS. FEIGE: Correct, no. CHAIR SEAMOUNT: So we're talking two separate companies and two separate leases? MS. FEIGE: Uh-huh. COMMISSIONER FOERSTER: But the land that you acquired, you did acquire from Geopetral? MS. FEIGE: Correct. Linc acquired the State of Alaska and Mental Health Trust leases from Geopetral. COMMISSIONER FOERSTER: Okay. So it -- and you guys have no ownership in the land on which they intend to drill? R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20I 21 22 23 24 25 MS. CUNNINGHAM: No, we don't. COMMISSIONER FOERSTER: Okay. All right. I understand. CHAIR SEAMOUNT: So you are asking what -- I mean, if they don't drill in the -- a normal spacing that how it would impact Geopetral's well? MS. CUNNINGHAM: I guess what I would like to understand and I should make clear for the record that I'm not here to contest the drilling of that well, what I am here to try to do is understand whether there is an impact to our property and whether there is the ability for us to see the data associated with the well that's planned to be drilled. So it's more of a fact finding mission, I guess, on my part. CHAIR SEAMOUNT: Well, if we give a definition of correlative rights or -- I mean, if you're not contesting it I would think that you could talk to our staff and talk to Linc and get those answers. I -- you know, we protect your -- we protect Geopetral's correlative rights just like we protect Linc. MS. CUNNINGHAM: Correct. CHAIR SEAMOUNT: So, I mean, if they wanted to drill outside of a normal spacing unit that they'd have to come in for a spacing exception. If they wouldn't, then there wouldn't be -- you know, there wouldn't even be a question, they'd have the right to drill. And we still haven't made a decision whether we're going to grant the spacing exception. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. CUNNINGHAM: Right. CHAIR SEAMOUNT: Commissioner Norman, do you have any comments? COMMISSIONER NORMAN: Referring to the well that was anticipated on the Geopetral lease to the south, what was the anticipated location of that lease? MS. CUNNINGHAM: Are you asking where they intended to drill? COMMISSIONER NORMAN: Where was the well going to be drilled, yeah. MS. CUNNINGHAM: It's my understanding and I don't have a CIRI map here, I brought the one that was in the package, but the location where they had intended to drill the well was right about here. COMMISSIONER NORMAN: Uh-huh. Well, that -- if that was right there that also then would be abutting up to Linc's well, would it not, so CIRI or Geopetral would have needed a spacing exception likewise to drill there. Okay. The land -- just for clarity, the land immediately to the east, it looks like a 40 acre parcel, that's part of the overall lease ending in 588, is that correct? MS. CUNNINGHAM: Yes. COMMISSIONER NORMAN: Okay. So and then let me just circle around this real quick too. And then University lands, the University was given notice and what is the measured R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19' 20 21 22 23 24 25 distance from your proposed location to the corner of the University lands? MS. FEIGE: To the corner, I don't have that figure in front of me, but it's about 1,900 feet, yeah. No, I correct that, Commissioner Norman, it may be just under 1,500 feet. COMMISSIONER NORMAN: And if it is under 1,500 feet then that -- well, they have not objected, they received notice, they have not objected, they're on notice of these proceedings so we won't dwell on that any further. And so back to -- Ms. Cunningham, then back to CIRI, your concern is simply to understand and gain information. Have you had discussions with Linc on this, often that's the way these things get resolved is parties have some discussion on it and there's a variety of ways it could get resolved. MS. CUNNINGHAM: Okay. That discussion has not taken place. COMMISSIONER NORMAN: Okay. Then I think you -- well, then a way you could proceed is to discuss this with the AOGCC staff and our mission is -- once this well is drilled then it's going to have an affect on where the next well could be drilled, first in the neighborhood in other words. So..... MS. CUNNINGHAM: Okay. COMMISSIONER NORMAN: .....that's something you need to think about and you need to think about it today and you need to think about it if you want to object to this spacing or if R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you don't want to object, then the Commission will proceed accordingly. MS. CUNNINGHAM: Okay. COMMISSIONER NORMAN: If you want to take a break and talk about it too, that's fine. COMMISSIONER FOERSTER: Typically if no one objects then we don't worry about -- you know, if you say we're not worried about correlative rights then we don't worry about it for you. MS. CUNNINGHAM: Uh-huh. COMMISSIONER FOERSTER: So if you don't -- if no one objects on a basis of correlative rights then we put that matter aside and worry about the other matters that we worry about in the course of our business. So it's really incumbent upon you to decide whether this infringes upon your correlative rights or not and if you feel that it does to object, and if you feel that it doesn't not to object. MS. CUNNINGHAM: Okay. COMMISSIONER FOERSTER: And any other fact finding that you guys need to do for other purposes doesn't have a place in this hearing. MS. CUNNINGHAM: Okay. CHAIR SEAMOUNT: If there's no objection we base our decision on geology, whether it's the best structural location or whether this stratigraphy is a reason to put the well there or geography, if there's a cliff or something that precludes or R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a swamp or -- I mean, there could be a number of geographical reasons to approve it. MS. CUNNINGHAM: Right. And I did bring a technical advisor with me today because that is part of the question. As I under -- we don't have enough information to understand whether this is a problem or not. So I came here today hoping to find out a little bit more about why the spacing exception needed to be requested so that we could come to some conclusion. CHAIR SEAMOUNT: Ms. Feige, she did allude to the reasons you might want to see if -- I mean..... MS. FEIGE: First of all if I could say if CIRI would like to contact Linc we'd be more than happy to sit down and work something out with you to talk about the location of the well and potentially work out a confidentiality agreement to show you the data coming from the well because we do recognize that within the Geopetral lease package as a whole you do own some various parcels that are all part of Geopetral's lease. So please, yes, you know, we'd be more than happy to talk to you about that and work something out. In terms of the location as I stated before, moving toward the north puts us -- there is -- you know, there's the sharp drop off the edge of the ridge which rolls us then down off of the optimal location of the structure. By the time we were to get the well moved out far enough to be away from that ridge R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 and that cliff and then moving that far out to the north then places us in the middle of the Goose Creek wetland which you'll see on that map is immediately to the north there. And so really and truly to get the best possible test of that structure that is -- that's how we ended up there, it's really just worked out to be an optimal location. And as I do recall though I cannot speak and it may not be appropriate for me to speak to the position of Geopetral's pad, but I was involved in the construction of that pad on behalf of them and the location that they had selected for their well is just about 2,200 feet from the LEA #1 location. So while we're within 1,500 feet of the lease line, we're actually greater than 1,500 from the -- Geopetral's previously proposed location for their well. COMMISSIONER NORMAN: But, Ms. Feige, if production is established here though then you would be closer than 3,000 feet..... MS. FEIGE: Correct. COMMISSIONER NORMAN: .....in proximity to a well..... MS. FEIGE: Correct. COMMISSIONER NORMAN: .....so and I think that's what Ms. Cunningham is searching for. Mr. Chairman, what I would suggest, I think Ms. Cunningham's wondering what if a discovery is made here, what ramifications does this have. I would suggest perhaps that we R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 take maybe a 10 minute recess, let them confer with advisors and then if you have some succinct questions for us we'll either do our best to answer them or not. But I think that's probably better than us trying to anticipate what your questions are and answer them. MS. CUNNINGHAM: Okay. COMMISSIONER FOERSTER: Before we go on break I do have one question for Ms. Feige. Ms. Feige, based on your knowledge of the structure that you're testing, if you were to make a discovery and produce it, would you be draining CIRI land with your discovery? MS. FEIGE: You mean in terms of the dimension and the shape and the direction of the structure? COMMISSIONER FOERSTER: Yes. MS. FEIGE: Yes, their acreage would be involved. COMMISSIONER FOERSTER: Have you made any -- do you have any plans to unitize or approach them? MS. FEIGE: Yes. COMMISSIONER FOERSTER: Okay. And which would address the correlative..... MS. FEIGE: Right. COMMISSIONER FOERSTER: .....rights questions? MS. FEIGE: Correct. COMMISSIONER FOERSTER: Yeah, okay. Okay. COMMISSIONER NORMAN: Okay. Off the record. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (Off record - 2:55 p.m.) (On record - 3:12 p.m.) CHAIR SEAMOUNT: Back on the record. Well, we missed our goal as usual. So we'll continue on with this hearing. Who wants to ask the first question or make the first statement? COMMISSIONER FOERSTER: I think it's..... CHAIR SEAMOUNT: Okay. Commissioner Norman. COMMISSIONER NORMAN: Okay. Well, I'll ask the question and maybe it will clarify things and if it doesn't go from there, but it would be of you, Ms. Feige. I believe you indicated that Linc is aware that in the drilling of the well if a discovery is made and you're ready to go on to commercial production that you would return to this Commission at that time and the Commission then would examine correlative rights based on the data you file. And if it does appear that property rights of adjacent owners are affected then there's two ways that it could be handled. One of them is that the owners, which is most often the case incidentally, you make a voluntary agreement and you're both happy, but the other route is that the -- one or the other parties petitions and presents it to the Commission, we receive the evidence, subsurface data on that reservoir, and then we made a decision concerning the extent to which each party should participate in the fullest sense, meaning get the costs and enjoy the production. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. FEIGE: Correct. COMMISSIONER NORMAN: Norman. COMMISSIONER FOERSTER: I do have a question. Where is Geopetral, why are they not here, I mean, usually it's the leaseholder, not the landowner, that comes to these hearings and puts forth a case? MS. CUNNINGHAM: I can't tell you why Geopetral is not here, they are not located in Anchorage and I don't know why they're not here today. We would normally not be put in this position because our lease -- our lessee is usually in a position where they come in and they keep us informed about what's happening and we rely on them for that purpose. So I apologize if this is awkward, but it does put us in an awkward spot. CHAIR SEAMOUNT: It's not awkward, just different. COMMISSIONER FOERSTER: Yeah. Yeah, we needed something different. MS. CUNNINGHAM: Something unusual. COMMISSIONER FOERSTER: No apology needed. COMMISSIONER NORMAN: Well, I think then based upon the question I asked and the answer from Ms. Feige does that leave you satisfied with what you hoped to -- information gained from today's hearing so that we can go forward or do you have..... MS. CUNNINGHAM: Yes, I think -- when we took the break we visited with our technical advisor for a few minutes to R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 24 1 2 3 4 51 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 understand more fully what some of the technical issues would be that we would need to be concerned with. And one of the things that we are concerned about is that we could see the evidence of the cross -- the cross cutting structure that was referred to and the evidence that there is a feature that exists that would require the drilling to take place where it's at. So we would like to be able to see that that is actually the case. COMMISSIONER NORMAN: Well, and I believe that Ms. Feige indicated that were you willing to sign a confidentiality agreement that that information could be shared with you. MS. FEIGE: Yeah, absolutely. COMMISSIONER NORMAN: Okay. And so the record should show that Ms. Feige is nodding her affirmation. COMMISSIONER FOERSTER: So we need to resolve whether you guys are contesting this spacing requirement or not before we close out this hearing. MS. CUNNINGHAM: Okay. Technically, I guess, to -- you know, to put things in the right perspective, we would be in a position where we would object to that happening until such time as we see the data that assures us that this is the location that needs to be drilled. COMMISSIONER FOERSTER: So you are objecting to the spacing exception? MS. CUNNINGHAM: Yes. R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIR SEAMOUNT: Do we need to continue this hearing then? COMMISSIONER FOERSTER: I think that would be a good idea. CHAIR SEAMOUNT: Okay. We'll continue the hearing. Before we do that I have to ask is there anybody else that wishes to testify? (No comments) CHAIR SEAMOUNT: Hearing none, are there any other comments from the Commissioners? COMMISSIONER FOERSTER: I have a question. In your application you had expressed a timeline and some sense of urgency. Are you going to be able to resolve the issues that are holding things up in a time that's going to be consistent with your timeline? MS. FEIGE: Well, at present our proposed spud date is the -- by the end of the first or the middle week of October. And so if CIRI is willing to engage in a confidentiality agreement and move expeditiously to have a look at that data and if the -- if the demonstration of the data is sufficient, then yes. COMMISSIONER FOERSTER: Okay. That monkey's on your bad. CHAIR SEAMOUNT: Well, how -- I'll take recommendations as to how -- when we should continue this hearing. Today's the 14th, the 28th is two weeks from today. MS. FEIGE: Okay. And may I ask is there a minimum timing that you need between -- between hearings? COMMISSIONER NORMAN: For the record what we're doing R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 right now, this is a continuation of the hearing that began this morning. And we recess we will reconvene at the date the Chair announces. The alternative would be to start over and renotice a new hearing and that does set in motion some dates. So if without putting pressure on anyone you were able to come in within let's say one week and say we've seen the data, we've signed a confidentiality agreement, we withdraw our objection, that would be the most expeditious way as opposed to letting this sit. MS. FEIGE: Okay. Sure. COMMISSIONER NORMAN: So that would take us to the 21st. So if we were able to reconvene a week from today at 9:00 o'clock. I'll throw that out, Mr. Chairman. COMMISSIONER FOERSTER: Well, do we have any other things on..... CHAIR SEAMOUNT: Yeah, we got the hearing on..... MS. COLOMBIE: Can I pull the calendar? COMMISSIONER FOERSTER: Yeah, let's check our calendar. CHAIR SEAMOUNT: All right. We're going off record for a second. (Off record - 3:21 p.m.) (On record - 3:23 p.m.) CHAIR SEAMOUNT: Change of plans. You need to come in for that -- the continuation of the hearing. And what time is it at? R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER FOERSTER: 10:30 Monday. CHAIR SEAMOUNT: 10:30 Monday. Just so there's no misunderstandings, e-mails can get messy. Okay. Are we communicating, you guys are going to get together, talk and give us your final decision on Monday. Okay. Sounds good. Anything else, Commissioner Norman? COMMISSIONER NORMAN: Nothing. CHAIR SEAMOUNT: Commissioner Foerster? COMMISSIONER FOERSTER: No. CHAIR SEAMOUNT: Then I think it's appropriate to adjourn -- not to adjourn, is it called adjourn? COMMISSIONER NORMAN: Move to recess..... COMMISSIONER FOERSTER: Second. COMMISSIONER NORMAN: .....to the appointed time. And that appointed time for the record being Monday, September 20th at the hour of 10:30 a.m. CHAIR SEAMOUNT: Okay. Until then we're off the record. (Recessed - 3:25 p.m.) R& R C 0 U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 NN NAME STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION LEA #1 Spacing Exception September 14, 2010 at 9:00 am and 2:30 pm AFFILIATION PHONE # TESTIFY (Yes or No) i �• J tin�1 ,CV V7✓ C a176!�2P ® r U-44's L-�P�u CkRI -3 0 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, September 09, 2010 1:59 PM To: Kim Cunningham; Cord Feige Cc: Chris Gay; Saltmarsh, Arthur C (DOA) Subject: LEA #1 Spacing Exception Application Attachments: Letter Regarding Linc Hearing Schedule 9 Sept 10.pdf Ms. Cunningham and Ms. Feige: The Commissioners have read CIRI's "Request for a Continuance" and Linc's response to the application for an spacing exception for Lea #1. The AOGCC will convene the hearing as scheduled on September 14, 2010 to open the docket (parties need not attend), then the AOGCC will reconvene the hearing at 2:30pm on the same day September 14, 2010 to hear testimony. if you have any questions, please call me at 793-1221. Jody Colombie Special Assistant From: Kim Cunningham [mailto:KCunningham@ciri.com] Sent: Wednesday, September 08, 2010 3:28 PM To: Colombie, Jody J (DOA) Cc: Chris Gay Subject: Letter re Hearing Scheduled for 9.14.10 Jody, Attached please find a letter regarding the above referenced hearing. The original letter is on its way to you via First Class mail. Thank you, COOK INLET REGION, INC. (CIRI) Director, Land & Resources Phone: (907) 263-5104 Fax: (907) 263-5559 Pie information contained in this CIRI e-mail message may be privileged, confidential and protected from disclosure_ If you are not an intended recipient. please notify the sender by reply e-mail and delete the message and any attachments immediately. The use. disclosure, dissemination, distribution or reproduction of this CIRI ,essa ge or tt?e irifonrration in it or attached to it by any unintended recipient is unauthorized. strictly prohibited by the sender. and may be unlawful. Thank you. • 1 September 8, 2010 Alaska Oil and Gas Conservation Commission Attn: Jody J. Colombie 333 West 7th Avenue, Suite 100 Anchorage, AK 99501-3539 RE: Request for Continuance of Public Hearing Scheduled for September 14, 2010 Linc Energy Operations, Inc. Application for Exception to Spacing Requirements Dear Ms. Colombie: Cook Inlet Region, Inc. (CIRI) respectfully requests a continuance of the above referenced Public Hearing. I am serving as a juror in a case presided over by Superior Court Judge Michael R. Spaan and the case is expected to continue through next week. Unfortunately, this will conflict with the above -referenced hearing and I do not know how to accommodate both obligations on the same day. I had planned to be present to testify for CIRI at this hearing but will not be able to do so. I understand the hearing will need to be convened since it has already been scheduled, but would respectfully request that the meeting be re -convened on September 20, 2010 so that I may participate on CIRI's behalf. Thank you for your consideration of this request and please do not hesitate to call me at 907-263-5104 if you have any questions or you can send me an email at kcunningham@ciri.com. Sincerely, Cook Inlet Region, Inc. Kim Cunningham Director, Land and Resources 2525 "C" STREET, SUITE 500 • P.O. BOX 93330 • ANCHORAGE, ALASKA 99509-3330 (907) 274-8638 • FAX (907) 279-8836 • Web Site: www.ciri.com • 9 September 2010 Alaska Oil and Gas Conservation Commission Attn: Jody J. Colombie 333 West 71h Avenue, Suite 100 Anchorage, AK 99501-3539 RE' CIRI'sRequest for Continuance of Public Hearing Scheduled for September 14, 2010 Linc Energy Operations, Inc. Application for Exception to Spacing Requirements Dear Ms. Colombie: RF OMm SEA' U nc EIIERGY Thank you for sharing Ms. Cunningham's request to delay the hearing on Linc's;Application for Exception to Spacing Requirements. Respectfully, Linc objects to any delay in the Commission's proceedings in regard to the requested spacing exception. Given our tight operational time -line for the LEA #1 well, we ask that the Commission proceed with the scheduled hearing on 14 September 2010. We appreciate that Ms. Cunningham might not be available for the hearing at the scheduled time on 14 September; however, any concerns Cook Inlet Region, Inc. (CIRI) might have in regard to our routine application certainly could be communicated to the Commission by another CIRI representative and/or communicated to the Commission in the form of a written submission. 'Moreover, we understand that the Anchorage Superior Court trial calendars only run until 1:30P. If the Commission is inclined to delay the hearing to facilitate Ms. Cunningham's direct participation (as opposed to CIRI sending another representative and/or submitting any objections in writing), we would ask that the Commission set the hearing for the afternoon of September 14 so Ms. Cunningham might attend following the completion of the trial calendar on September 14. Sincerely, Linc Energy Operations, Inc. Corri A. Feige Alaska Project Manager Linc Energy Operations, Inc. 3000 C St. 139 West 2nd St. 1200 17th St. Leader in Clean Coal Technology Suite 103 Suite 1 B Suite 2100 Anchorage, AK 99503 Casper, WY 82601 Denver, CO 80202 www.fincenergy.com.au p 907 868 8660 P 307 472 2175 P 303 623 0510 info@1incenergy.com.au F 907 868 8881 F 307 472 2174 F 303 623 0547 r • Colombie, Jody J (DOA) From: Chris Gay [CGay@ciri.com] Sent: Tuesday, August 24, 2010 10:03 AM To: Colombie, Jody J (DOA) Cc: Kim Cunningham Subject: Request for Hearing--Linc Energy Operations, Inc. Spacing Exception Re: Request for Hearing Linc Energy Operations, Inc. Application for Exception to Spacing Requirements LEA #1 Exploration Gas Well Section 30, T16N, R3W, S.M. Cook Inlet Region, Inc. would like to request a hearing regarding the above referenced application. Sincerely, Kim Cunningham Director, Land and Resources Chris Gay Land and Resources Cook Inlet Re0on, Inc. (CIRI) 2525 "C" Street, Ste. 500, Anchorage. AK 99503 PO Box 93330. Anchorage, AK 99509-3330 907-263-5517 (phone) 907-263-5559 (fax) ...... .... .m.-......... Fhr information contained in this CIRI e-mail message may be privileged, confidential and protected from disclosure If you are not an intended recipient_ please notly the sender by reply e-mail and delete the message and any attachments immediately. The use, disclosure, dissemination, distribution or reproduction of this CIRI message or the ,formation in it or attached to it by any unintended recipient is unauthorized, strictly prohibited by the sender, and may be unlawful. Thank you. 0 STATE OF ALASKA ADVERTISING ORDER 0 NOTICE TO PUBLISHER 0 INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. A 0-02114006 M SEE AOTTD-,# FOR INVplCE ADDRESS F R D M AOGCC 333 W 7th Ave, Ste 100 Anchorage, AK 99501 907-793-1238 AGENCY CONTACT Jody Colombie DATE OF A.O. July 29 2010 PHONE —1221 PCN ADVERTISEMENT REQUIRED: ASAP THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ENTIRETY ON THE DATES SHOWN. o The Frontiersman 5751 E. Mayflower Ct. Wasilla AK 99654 ITS SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEE ATTACHED � n I U SEND INVOICE IN TF%IPLIOAT . AOGCC, 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF ITYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARv 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIQ 1 10 02140100 73451 2 3 REQUISITIO B DIVISION APPROVAL: 02-902 (Rev. 3/9V Publisher/Original Copies: Department Fiscal, Department, Receiving AOTRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Line Energy Operations, Inc for an exception to the spacing requirements of 20 AAC 25.055(a)(2), for the drilling, testing and completion of an exploration gas well, within 1500 feet of an adjacent property line. Line Energy Operations, Inc. (Line) by a letter dated and received on July 26, 2010, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for the exception to the spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA # 1 exploration gas well on lease ADL # 390588 in Section 30, T16N, R3W, Seward Meridian. The proposed surface and bottomhole location of the well is as follows: LEA # 1 Surface and Bottomhole Location: 1895 feet from the east line 1169 feet from the south line, Section 30, T16N, R3W, Seward Meridian The Commission has tentatively scheduled a public hearing on this application for September 14, 2010 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 71h 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 August 25, 2010. 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 8, 2010. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 71h Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 10, 2010, except that, if a hearing is held, comments must be received no later than the conclusion of the September 14, 2010 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 10, 2010. r Daniel T. Seamount, Jr. Chair, Commissioner • Frontiersman Growing with the Valley since 1947. F(],* !*', 201" 5751 East Mayflower Court Wasilla, AK99654 (907) 352-2250 (907) 352-2277 Fax AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DIVISION BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC, THIS DAY PERSONALLY APPEARED BEFORE LYNN SPARKS WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT SHE IS THE LEGAL AD CLERK OF THE FRONTIERSMAN PUBLISHED AT WASILLA, IN SAID DIVISION THREE AND STATE OF ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED ON THE FOLLOWING DAYS: AUGUST 1, 2010 AND THAT THE RATE CHARGED THEREIN IS NOT IN EXCESS OF jTHRATE CHARGED PRIVATE INDIVIDUALS. tj BED AND S ORN TO BEFORE ME THIS 9th DAY OF AUGUST 2010 ARY OUBLIC FOR STATE OFAILASKA • Notice of uPublic blic Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Lind Energy Operations, Inc for an exception to the spacing requirements of 20 AAC 25.055(a)(2), for the drilling, testing and completion. of an exploration gas well, within ;1500 feet of an adjacent property line. Linc Energy Operations, Inc. (Linc) by a letter dated and, received on July 26, 2010, requests the Alaska Oil and Gas Conser- vation Commission (Commission) issue an order for the exception to the spacing re- quirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on lease ADL # 390588 in Section 30, T16N, R3W, Seward Meridian. The proposed surface and bottomhole location of the well is as follows. LEA #f Surface and Bottomhole Location: 1895 feet from the east line 1169 feet from the south line, Section30, T16N, R3W, Seward Meridian The Commission has tentatively scheduled a public hearing on this application for September, 14, 2010 at 9:00 a.m. at the Alaska QA and Gas Conservation Commis- $14 at 333 West 7th Avenue, "Suite 10o, AWWags, Alaska 99501. To request that th® tentatively scheduled hearing ,be held, wwritten,request must be filed with the Commission no later than 4:30p.m. on August 25, 2010. If a request for a hearing is not timely filed, 111e Commission may consider the issu- ance ' of an order 'without a hearing. To learn if the Commission will hold ;the hear- ing, call 793-1221 after September 8, 2010. In addition, written comments' regarding this application may be submitted to the Alaska Oil and Gas Conservation Commis- sion, at 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501. Comments must be received no later than 4*30 p.m. on September 10, 2010, except that, if a hearing is held, comments must be re- ceived no later than the conclusion of the September 14, 2010 hearing. If, because of a disability, special accom- modations may be needed to comment or attend the hearing, contact the Commis- sion's Special Assistant, Jody Colombie, al 793-1221, no later than September 10, 2010. Is/ Daniel T. Seamount, Jr. Chair, Commissioner FR#1966 Publish: August 1, 2010. STATE OF ALASKA I NOTICE TO PUBLISHER # ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER v., CERTIFIED - /� C ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO 0211400 V ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE`130Ti iw7 .l, NY Et . DpF ES • F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 71h Avenue. Suite 100 Jody Colombie July 29, 2010 o Anchorage_ AK 99501 PHONE PCN M 907-793-1238 -1221 ADVERTISEMENT REQUIRED: ASAP T 0 The Frontiersman 5751 E. Mayflower Ct. Wasilla AK 99654 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. 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 2010, and thereafter for consecutive days, the last publication appearing on the day of 2010, 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 2010, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER STATE OF ALASKA • NOTICE TO PUBLISHER • ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A 0-02114007 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 W 7th Ave, Ste 100 ° Anchorage, AK 99501 M o Alaska Journal of Commerce 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 Type of Advertisement SEE ATTACHED CE IU, R F I ATE ; AOGCC, 333 W. 7th Ave., Suite 100 l�"i'm Anchorage, AK 99501 REF TYPE NUMBER AMOUNT DATE 1 VEN 2 ARC 02910 FIN AMOUNT SY CC PGM 1 10 02140100 AGENCY CONTACT Jody Colombie PHONE DATES A ASAP REQUIRED: DATE OF A.O. July 29, 2010 PCN THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL I PAGE 1 OF TOTAL OF 2 PAGES ALL PAGE COMMENTS LC ACCT FY NMR DIST 73451 F4 DIVISION APPROVAL: 02-902 (Rev.(P/94Y Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM 0 0 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Linc Energy Operations, Inc for an exception to the spacing requirements of 20 AAC 25.055(a)(2), for the drilling, testing and completion of an exploration gas well, within 1500 feet of an adjacent property line. Linc Energy Operations, Inc. (Linc) by a letter dated and received on July 26, 2010, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for the exception to the spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA # 1 exploration gas well on lease ADL # 390588 in Section 30, T16N, R3W, Seward Meridian. The proposed surface and bottomhole location of the well is as follows: LEA # 1 Surface and Bottomhole Location: 1895 feet from the east line 1169 feet from the south line, Section 30, T16N, R3W, Seward Meridian The Commission has tentatively scheduled a public hearing on this application for September 14, 2010 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`h 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 August 25, 2010. 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 8, 2010. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7`h Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on September 10, 2010, except that, if a hearing is held, comments must be received no later than the conclusion of the September 14, 2010 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 10, 2010. 0--/� Daniel T. Seamount, Jr. Chair, Commissioner I ALASKAJournat, Commerce Alaska Oil & Gas Conservation Commission Public Notices FILE NO: AO-02114007 Ad#: 10138766 AO-02114007 Linc Public notice AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DISTRICT BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED Lara Bickford WHO, BEING FIRST DULY SWORN, ACCORDING TO THE LAW, SAYS THAT SHE IS THE Business Manager OF THE ALASKA JOURNAL OF COMMERCE PUBLISHED AT 301 ARTIC SLOPE AVENUE, SUITE 350, IN SAID THIRD DISTRICT AND STATE OF ALASKA AND THAT ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WHICH WAS PUBLISHED IN SAID PUBLICATION 08/08/2010 8th DAY OF AUGUST 2010 AND THERE AFTER FOR 1 CONSECUTIVE WEEK(S) AND THE LAST PUBLICATION APPEARING ON 08/08/2010 8th DAY OF AUGUST 2010 Lara Bickford \ J Business Manager �J SUBSCRIBED AND SWORN BEFORE ME THIS 9th DAY OF August 2010 NOTARY PUBLIC STATE OF ALAS MY COMMISSION EXPIRES 6/14/1 NOTARY P BL.I6 SEUNDA CUIALN r STATE OF AL.A3Kk My Commi8sl0n Ey_pires uvii- ATTACH PROOF OF PUBLICATION HERE Notice of Public Hear STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Line Energy Operations, Inc for an exception to the spacing requirements of 20 AAC 25.055(a)(2), for the drilling, testing and completion of an exploration gas well, within 1500 feet of an adjacent property line. Line Energy Operations, Inc. (Line) by a letter dated and received on July 26, 2010, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for the exception to the spacing requirements of 20 AAC 25.055(a)(2) to drill the LEA #1 exploration gas well on lease ADL # 390588 in Section 30, T16N, R3W, Seward Meridian. The proposed sur- face and bottomhole location of the well is as follows: LEA #1 Surface and Bottomhole Location: 1895 feet from the east line 1169 feet from the south line, Section 30, T16N, R3W, Seward Meridian The Commission has tentatively scheduled a public hearing on this application for September 14, 2010 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 August 25, 2010. 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 8, 2010. In addition, written comments regard- ing 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. on September 10, 2010, except that, if a hearing is held, -comments must be received no later - than the conclusion of the September 14, 2010 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, con- tact the Commission's Special Assistant, Jody Colombie, at 793- 1221, no later than September 10, 2010. Daniel T. Seamount, Jr. Chair, Commissionet Pub: 8/8/2010 Ad#10138766 0 • STATE OF ALASKA I NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE.SHOWING ADVERTISING ORDER NO., CERTIFIED /� O_02114007 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC R 333 West 7t' Avenue. Suite 100 o Anchorage_ AK 99501 M o Alaska Journal of Commerce 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 United states of America State of AGENCY CONTACT PHONE 17V/1 /7_7 -IGGI DATES ADVERTISEMENT REQUIRED: ASAP DATE PCN THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: 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 2010, and thereafter for consecutive days, the last publication appearing on the day of . 2010, 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 2010, Notary public for state of My commission expires _ • • 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 S'/ ��I 7C/l IJ� Colombie, Jody J(DOA) From: Colombie, Jody J (DOA) Sent: Thursday, July 29, 2010 1:24 PM To: Ballantine, Tab A (LAW); (foms2@mtaonline.net);(michael.j.nelson@conocophillips.com); (Von. L. Hutchins@conocophillips.com); Alan Dennis; alaska@petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Walker; Bowen Roberts; Brad McKim; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; carol smyth; caunderwood; Charles O'Donnell; Chris Gay; Cliff Posey; Crandall, Krissell; dapa; Daryl J. Kleppin; David Boelens; David House; David Steingreaber; 'ddonkel@cfl.rr.com'; Deborah J. Jones; Delbridge, Rena E (LAA); 'Dennis Steffy'; doug_schultze; Elowe, Kristin; Evan Harness; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz; ghammons; Gordon Pospisil; Gorney, David L.; Gregg Nady; gspfoff; Harry Engel; Jdarlington Qarlington@gmail. com); Jeff Jones; Jeffery B. Jones Qeff.jones@alaska.gov); Jerry McCutcheon; Jim White; Jim Winegarner; Joe Nicks; John Garing; John Katz (john.katz@alaska.gov); John S. Haworth; John Spain; John Tower; Jon Goltz; Joseph Darrigo; Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; 'Kim Cunningham'; Larry Ostrovsky; Laura Silliphant; Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); Mark Kovac; Mark P. Worcester; Marquerite kremer; '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); PORHOLA, STAN T; Rader, Matthew W (DNR); Raj Nanvaan; Randall Kanady; Randy L. Skillern; rob.g.dragnich@exxonmobil.com; Robert A. Province (raprovince@marathonoil.com); 'Robert Brelsford'; Robert Campbell; Roberts, Susan M.; Rudy Brueggeman; Scott Cranswick; Scott, David (LAA); Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy O (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Williamson, Mary J (DNR); Winslow, Paul M; Yereth Rosen; 'Aaron Gluzman'; Bettis, Patricia K (DNR); 'Dale Hoffman'; Frederic Grenier; 'Gary Orr'; 'Jason Bergerson'; Jerome Eggemeyer; 'Joe Longo'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; Talib Syed; 'Tiffany Stebbins'; 'Wayne Wooster'; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA); Brooks, Phoebe; Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Johnson, Elaine M (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (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: Public Notice Lea #1 (Linc Energy) Attachments: Public Notice Lea #1 (Linc Energy).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 Linc 26 July 2010 EnERGY Mr. Daniel T. Seamount, Chairman Alaska Oil and Gas Conservation Commission 333 West `7th Avenue, Suite 100 Anchorage, AK 99501 RE: Linc Energy Operations, Inc. LEA #1 Natural Gas Exploration Well Application for Spacing Exception Dear Chairman Seamount: rz ��;ntssior� �1>lrSka � r►t1C aCaq'� Linc Energy Operations, Inc. ("Linc") plans to drill an exploratory natural gas well, LEA#1, on State of Alaska Oil & Gas Lease ADL #390588 located in T16N, R3W, Seward Meridian within the Matanuska- Susitna Borough in late September, 2010 or as soon thereafter as possible. The LEA #1 will reside within 1500 feet of an adjoining lease line. Under the requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(d), Linc hereby requests a Spacing Exception for the LEA #1. Surrounding owners and landowners within 3,000 of the LEA #1 location are listed in the following table and are shown on the attached Vicinity and Proximity Maps, as well. No completed wells exist on the property or on adjoining properties. Per the requirements of 20 AAC 25.055(d), Linc has sent a notice of this application by Certified Mail to those listed in the following table. Acopy of that notice and the associated Certified Mail receipts, are attached. OWNER LANDOWNER LEASE NUMBER Cook Inlet Region Inc. GeoPetro (Alaska) LLC C-061661 University of Alaska University of Alaska NONE Attached to this application you will find a Vicinity map showing the gross location of the LEA #1 and surrounding landowners, and a Proximity Map at larger scale showing the LEA #1 location, distance to nearest lease lines, and surrounding landowners. Linc Energy Operations, Inc. respectfully requests that the Commission review and process this application for Spacing Exception for the LEA #1 at your earliest convenience. If you require any additional information, please contact myself at Linc's Anchorage office at (907) 868-8660. Sincerely, Linc Energy Operations, Inc. Cord A. Feige �f Project Manager Linc Energy Operations, Inc. 3000 C St.' 139 West 2nd St 1200 17th St. Leader in Clean Coal Technology suite 103 Suite 1 B Suite 2100 Anchorage, AK 99503 Casper, WY 82601 Denver, CO 80202 www.1incenergy.com.au P 907 868 8660 P 307 472 2175 P 303 623 0510 info@iincenergy.com.au F 907 868 8881 F 307 472 2174 F 303 623 0547 Attachments: LEA #1 Vicinity Map LEA #1 Proximity Map Copy of Notice of Application Letters to GeoPetro Alaska LLC, CIRI, and University of AK Copy of Certified Mail receipts for Notice Letters STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT AFFIDAVIT I, CORRI FEIGE, after being duly sworn, hereby affirm that I am the Project Manager for Linc Energy Operations, Inc. ("Linc") and that I have personal knowledge of the facts related to Linc's Application for a Spacing Exception ("Application") for the LEA #1 well. All facts stated in Linc's Application are true, and the plat/maps attached to Linc's Application correctly portray the pertinent and required data. CORRI FEIGE SUBSCRIBED AND SWORN to before me this.,2�oday of July, 2010. Notary Public in Ad for the State of Alaska My Commission Expires: d4 2f, )-0/ Ll ------ I Notwy PW* COLEEN LEOKW $10 o/ AWM of Commission E*m may 29, 2014 Linc Energy Operations, Inc. LEA #1 Well Location Vicinity Map 4 3 2 1 6 5 4 3 2 1 6 5 4 3 t 6 5 4 3` 2 ADL390593 8 9 _ 'A 4'r 9 10 12 7 ADL390590 Qb 12 7 8 9 �ff10-�11 12 7 i $ 9 "10 11 11 ADL390587 - ADL39 589 16 15 14 13 18 17 16 15 14 13 18 17 16 �p3�15 14 13 8 16_ 15 14 i T16N R5W -- �-- _ T16N R4W ;____--+__ _..__ _ 3W- �� 21 22 23 24 19 20 21 22 23 24 19 20 21 �22,%'1 ~j4:3 ,i11" t.•" 19 20 i 21 22 23 29 28 ADL390588 28 2 �t t2 j�s.\ 28 27 ADL390594 30 ADL390591 27 ADL390592 25 30 251� I 29 8 27 26 26 25 26 LEA #1 Location As -Staked 35 36 31 29 -- — _ 32 *�_ 33 34 35 36 31 32 33 34 ADL390588 344 35 36 31 I 33 33 ! . - MHT9300061 GeoPetro Lease #C-061661 4 3 2 .� 1 5 4 3 MHT930 061 5 4 3 2 1 6 MHT9300061 2 MHT9300 61 6 MHT9300061 MHT9300061 — ~ T ADL390580 ` 9 10 11 1 4' 7 8 9 10 11 12 7 MHT9300061 9 10 11 12 7 8 9 a4 10 11 HT9300061 8 T15N RSW T15NR4W ADL390582 ADL390581 MHT9300061 MHT9300061.r ,T1 N R2W"= 1 18 17 T5N R3W I1 16 :. «.Qf`� 1 16 15 14 13 18 17 15 14 13 T9300061 ADL390580 IV 15 14 13 18 17 `.' 4'16 15 1,41 ADL39058 20 23 ADL39058 .x�L' i 21 22 23 24 9DL390 84 19 20 21 22 23 24 19 20 21 22 I23' ADL390583 MHT930b06122 MHT9300061 24 Shaded area is State of Alaska oil & gas leases owned by Linc Energy (Alaska), Inc. LEA #1 Well Operated by Linc Energy Operations, Inc. GeoPetro Lease #C-061661 has northern lease line 1169 feet south of LEA #1 location. Legend w� ❑Tonwship-Range Section 7LincAK_ptmac_a4 0 0.5 1 2 Miles I I I I I I I • ETC Linc Energy Operations, Inc. LEA #1 Well Location Lease Proximity Map 0 Shaded area is State of Alaska oil & gas leases owned by Linc Energy (Alaska), Inc. LEA #1 Well Operated by Linc Energy Operations, Inc. LEA #1 located 1169 feet from south lease line, abutting GeoPetro Lease #C-061661, and 3385 feet from west lease line abutting GeoPetro Lease #C-061661. Legend ❑Tonwship-Range Section []LincAK_ptmac_a4 0 0.125).25 0.5 Miles I I I I I I I I I EIIERGY 0 Ll HC 26 July 2010 ERERGY Mr. Stuart Doshi President GeoPetro Alaska LLC 150 California Street; Suite 600 San Francisco, CA 94111 RE: Notice of Application for Spacing Exception LEA #1 Exploratory Well Matanuska- Susitna Borough, Alaska Dear Mr. Doshi, RECEIVED JUL 2 f� f ks 90 &Gas Cores. Cow lis;; s ki chl3r: Linc Energy Operations, Inc. ("Linc") has applied for a Spacing Exception under the provisions of 20 AAC 25.055(a)(2) for the LEA #1 exploratory natural gas well to be placed on State of Alaska Oil & Gas Lease ADL #390588 in Section 30, T16N, 113W, Seward meridian, within the Matanuska-Susitna Borough, Alaska. You are being notified of this application pursuant to the requirements of 20 AAC 25.055(d), as the LEA #1 will be located within 1500 feet of the northern lease boundary of Cook Inlet Region, Inc. oil and gas lease #C-061661 currently held by GeoPetro Alaska LLC. A Proximity Map showing the planned location of the LEA #1 relative to northern boundary of lease #C-061661 is attached for your reference. Upon receipt of Linc's Application for Spacing Exception, the Alaska Oil and Gas Conservation Commission will review the application and request public comment prior to making a final decision regarding the requested Spacing Exception. If you require any additional information, please contact Linc's Anchorage, Alaska office at (907) 868-8660. Sincerely, Linc Ener Operation Inc. Corri Feige Project Manager Attachment: LEA #1 Proximity Map Leader /n Clean Coal Technology www.lincenergy.com.au info@tincenergy.com.au 3000 C St. Suite 103 Anchorage, AK 99503 P 9:: 7 868 8660 F 907 868 8881 139 West 2nd St. Suite 1 B Casper, WY 82601 307 472 2175 F 307 472 2174 Linc Energy Operations, Inc. 1200 17th St. Suite 2100 Denver, CO 80202 P 303 623 0510 F 303 623 0547 postage $ .44 'artifled Foe 2,90 Receipt Fee rtnequ)red) j' t`;1 Postmark JULZT 2010 Fee ,t ii quired) tge & Fees I $ `, r .._f�i).�...M.: -t-. 2. ...._._......._ taus �E:' m ai( n i *'xiY'%Jn� f rrc � t 4r .its Sri" Postags s -1 Bed Fee Postmark -Q-i� `� ,'�I ,Ill! 9"P 7mn very Fee tequirn7 - t & fees I Zb VIC ' i D�MAI 1 (V fl Only: No 1n �re� ' ' u rGr #ifr Y y t postage $ vt fle@Fee 2 r$r postmark lequlred)a��J: JUL 2V 2010 very Fee tequEratl) *& Fees t. i ■ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delhrary Is desired. I ■ print your name and address on the reverse so that we can reMm the card to you. ■ Attach this card to the beck of the rnallplece, or on the front If space permits. 1. Article Addressed to: zand L r? JV15 xfie ry rrta ji 2. Article Number (rhansfer from sewke label) _ P5 Form 3811. February 2004 A. Signature S. Pec alved by (P*tsd Name) C. hate of Deiiv D. Is delivery address dtffererrt lrrxn itt 1? ❑ too if YES, enter delvwy address below: 0 No 3. Service Type O'tertmed Mail ❑ Express WE 13 Registered 43 katum Receipt for Marchand ❑ insured Mail ❑ C.O.D. 4. Restricted Delhtery? (Exr3ra Fee) ❑ Yes 1 1 1_1 I111 Domestic Rehxn Receipt ® Complete items 1, 2, and 3. Also complete Item 4 If Restricted C>dkwy Is desired. • Print your name and address on the reverse so that we can return the card to you. M Attach this card to the back of the mailplece, . or on the front if spate permits. 1. Article Addressed to, ISO A. X 1 c26s6-02-Iola Agent B. � , qMun- - . Date of Deliv 12-30-1,10 D. 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Servicelype LL1�, rd,� 2525 G �>T, ��t' 5'90 ry f Q &O X q. -YO C-f`Carttfled Mail C7 Express Mail ❑ Registered C•i'Retum ReoeIpt for Marchand) 41)640(a w Ak �Kof j-?go o Insured Mell a C.O.D. 4. Restricted De] ry? (Extra I") ❑ Yee 2. AWde ffiWMNumber (rfarisfer firm, 701t0 1,060 0000 8466 5930 service tsb� I PS Form 3811, February 2004 Domestic Return Receipt 1028e5-0241-1.