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Home My WebLink AboutCO 648 • 0 Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. (11, 6 4 Order File Identifier Organizing (done) ❑ Two -sided 1 III ❑ Rescan Needed 1 i 1111 1111 RES N DIGITAL DATA OVERSIZED (Scannable) Co r Items: ❑Diskettes, No. ❑Maps: Greysca{e {terns: ❑Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: lo ❑ Other:: _ BY: Date: Project Proofing I nil I BY: Maria Date: /s/ P Scanning Preparation x 30 = + = TOTAL PAGES 3 j - (Count does not include cover sheet) ii , BY: Date: / /s/ Production Scanning I IIIII I Stage 1 Page Count from Scanned File: 3 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: I/ YES NO BY: 4112. Date: (C) /9 /s/ V '! 1 . p Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO 1 BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. 11111111111 ReScanned I 11111 I BY: Maria Date: /s/ Comments about this file: Quality Checked I 11111 I 10/6/2005 Orders File Cover Page.doc • S CO 648 Susan Dionne #7 1. February 21, 2011 Marathon's Application for Location Exemption 2. March, 2, 2011 Notice of public hearing, affidavit of publication, bulk mail list, email list 3. March 21, 2011 E -mail re: public requests about MOC Spacing Exception • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Marathon Oil ) Conservation Order No. 648 Company for an order granting an exception ) to the well spacing requirements of 20 AAC ) Ninilchik Unit Susan Dionne No. 7 25.055(a)(4) to allow drilling, completion, ) Gas Development Well testing, and regular production of the proposed ) Susan Dionne No. 7 gas development well ) within 3000 feet of wells producing or capable ) May 24, 2011 of producing from the same pool. ) IT APPEARING THAT: 1. By letter dated February 21, 2011 and received March 1, 2011, Marathon Oil Company (MOC) requested the Alaska Oil and Gas Conservation Commission (Commission) enter an order allowing an exception to the well spacing requirements of 20 AAC 25.055(a)(4) to permit drilling, completion, testing and regular production of the Susan Dionne (SD) No. 7 gas development well within 3000 feet of the SD No. 3, SD No. 4 and the Paxton No. 1 wells which produce from the same pool. The SD No. 7, the SD No. 3, the SD No. 4 and the Paxton No. 1 wells are within the Ninilchik Unit, Susan Dionne / Paxton Participating Area, Kenai Peninsula Borough, Alaska. 2. On March 13, 2011, pursuant to 20 AAC 25.540, the Commission published in the Alaska Journal of Commerce notice of the opportunity for a public hearing on April 19, 2011 at 1:00 pm. 3. No protest to the application or request for a hearing was received. 4. Because Marathon provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 5. The public hearing was vacated on March 30, 2011. FINDINGS: 1. MOC will be the operator of the SD No. 7 development gas well within the Ninilchik Unit, Susan Dionne /Paxton Participating Area, Kenai Peninsula Borough, Alaska. 2. The SD No. 7 well is proposed as a deviated gas delineation well with a surface location 3624 feet from the west line (FWL) and 206 feet from the south line (FSL) of Section 6, T1S, R13W, Seward Meridian (S.M.), Top Productive Interval, Estimated Top of Tyonek 116' (FWL) and 124' (FSL), of Section 7, T1S, R13W, S.M., and a Bottomhole Location 877' (FEL) and 409' (FSL), of Section 12, T1S, R14W, S.M. 3. The SD No. 7 well will target discontinuous gas reservoirs in the Tyonek Formation T3, T006 and T 138 gas sands which may not be accessible to the SD No. 3, the SD No. 4 or the Paxton No. 1 wells. Conservation Order 648 • • May 24, 2011 Page 2 of 3 4. The SD No.7 well is within 3,000 feet of the SD No.3, SD No. 4 and the Paxton No. 1 gas production wells. 5. By certified mail, MOC sent notice of the application for an order granting an exception to the well spacing requirements of 20 AAC 25.055 to all owners, landowners, and operators of all properties within 3,000 feet of the anticipated productive intervals of the proposed SD No. 7 well. CONCLUSIONS: 1. Exceptions to 20 AAC 20.25.055(a)(4) are necessary to allow drilling, completion, testing, and regular production of the SD No. 7 gas well. This well is needed to evaluate the Tyonek Formation T3, T006 and T138 gas reservoirs in the Ninilchik Unit of the Susan Dionne/Paxton Participating Area. 2. Granting a spacing exception to allow drilling, completion, testing, and regular production of the SD No. 7 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Marathon's application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling, completion, testing, and regular production of the SD No. 7 well is approved. Because the properties affected by this spacing exception are wholly within the Ninilchik Unit of the Susan Dionne/Paxton Participating Area, MOC may proceed with regular production as long as it complies with the terms of the Ninilchik Unit and the Susan Dionne /Paxton Participating Area agreements and all other legal requirements. ENTERED at Anchorage, Alaska, and dated May 24, 2011. 440 Ape' ipie" Daniel T. Seam. Jr., Chair 0‘‘' AND QIs Al. , a Oil an. . • Conservation Commission issioner .• ask. Oi and Gas Co ' servation Commission - `r FkYATI ∎ ^ if Cathy P. oerster, Commissioner Alaska • it and Gas Conservation Commission Conservation Order 648 • S May 24, 2011 Page 3 of 3 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this 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. III • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Tuesday, May 24, 2011 3:00 PM To: 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood @marathonoil.com; 'Dale Hoffman'; 'David Lenig'; 'Gary Orr; 'Jason Bergerson'; 'Joe Longo'; 'Kevin Skiba'; 'Lara Coates'; 'Marc Kuck'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Richard Garrard'; 'Sandra Lemke'; 'Talib Syed'; 'Wayne Wooster; 'William Van Dyke'; Woolf, Wendy C (DNR); '(foms2 @mtaonline.net)'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts'; 'Brady, Jerry L'; 'Brandow, Cande (ASRC Energy Services)'; 'Bruce Webb'; 'caunderwood'; 'Chris Gay'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Steingreaber'; 'ddonkel @cfl.rr.com'; Delbridge, Rena E (LAA); 'Dennis Steffy'; 'Elowe, Kristin 'Erika Denman'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Gary Laugh lin'; 'Gary Rogers'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; 'Judy Stanek'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com); 'Mark Kovac'; 'Mark P. Worcester; 'Michael Dammeyer'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; ' rob.g.dragnich @e)oxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Ryan Daniel'; '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'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger'; 'trmjrl'; 'Valenzuela, Mariam ; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; Aubert, Winton G (DOA) (winton.aubert@alaska.gov); Ballantine, Tab A (LAW); Brooks, Phoebe L (DOA) (phoebe. brooks @alaska.gov); Colombia, Jody J (DOA) (jody.colombie @alaska.gov); Crisp, John H (DOA) (john.crisp @alaska.gov); Davies, Stephen F (DOA) (steve.davies @alaska.gov); Foerster, Catherine P (DOA) (cathy.foerster @ alaska.gov); Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov); Herrera, Matt F (DOA); Johnson, Elaine M (DOA) (elaine.johnson @alaska.gov); Jones, Jeffery B (DOA) (jeff.jones @alaska.gov); Laasch, Linda K (DOA) (linda.laasch @alaska.gov); Maunder, Thomas E (DOA) (tom.maunder @alaska.gov); McIver, Bren (DOA) (bren.mciver @alaska.gov); McMains, Stephen E (DOA) (steve.mcmains @alaska.gov); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA) (bob.noble @alaska.gov); Norman, John K (DOA) (john.norman @alaska.gov); Okland, Howard D (DOA) (howard.okland @alaska.gov); Paladijczuk, Tracie L (DOA) ( tracie.paladijczuk @alaska.gov); Pasqual, Maria (DOA) (maria.pasqual @alaska.gov); Regg, James B (DOA) (jim.regg @alaska.gov); Roby, David S (DOA) (dave.roby @alaska.gov); Saltmarsh, Arthur C (DOA) (art.saltmarsh @alaska.gov); Scheve, Charles M (DOA) (chuck.scheve @alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov); Seamount, Dan T (DOA) (dan.seamount @alaska.gov) Subject: co648 Susan Dionne No. 7 Attachments: co648.pdf . CUP La: .t ct. F i- he4 Leoka, OL% cx,vtcl. C?ct S Crnmet Cc t ;s icro.,' (907)793 - 222 3 (907)276- 7 ( ix.x) 1 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 18 Street President 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 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 `\ Q �\' '\ 4 i I � - C'7 �1' • • Colombie, Jody J (DOA) From: Saltmarsh, Arthur C (DOA) Sent: Monday, March 21, 2011 9:47 AM To: Colombie, Jody J (DOA) Subject: MOC Spacing exception. Jody, I received two calls from the public requesting information about the public notice for the MOC Spacing exception. 1 talked with both parties and explained what the notice was about. The callers were Stephanie Gates for her husband Charles Lee Gates and the second was from John Stengle. Neither of the parties had any request or public comments to submit to the Commission. Art Saltmarsh, CPG Alaska Oil and Gas Conservation Commission 333 W. 7th Ave., Ste 100 Anchorage, Alaska 99501 907 - 793 -1230 tit '#'> V ;4 tn _ Ak• 10 ,010 1 "The onlything necessaryfor the triumph of evil Is for good men to do nothing" Edmund Burke 1 i Marathon Oil Company Ninilchik Unit, - Susan Dionne /Paxton Participating Area Susan Dionne #7 Well Kenai Peninsula Borough, Alaska Geologic Summary The Susan Dionne 7 (SD -7) is a development well designed to target gas sands in the Tyonek T3 reservoirs present in the Susan Dionne /Paxton (SD /PAX) area. The SD -7 will be the sixth well drilled by Marathon from the Susan Dionne pad and the seventh well on the SD /PAX structure to test the Tyonek T3. The well is a mutually agreed upon location (with Chevron) for 2011 drilling in the Ninilchik Unit. The completion plan is to run three strings of casing (Le. surface, intermediate, and production casing) and simply perf & flow the reservoirs. The SD -7 target zones are productive in the SD -3, SD -4, and PX -1 wellbores. The SD -7 well location is potentially fault- separated from these existing productive wells and will access new reserves. Secondary reservoir targets include the T006 and T138 sands, which have proven productive in nearby wells. / / 4/-i9 Ca,WAIA f / cA09,7 1 � J 312 1/ 4 • • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 WESTSEVENTH AVENUE, SUITE 100 Anchorage, Alaska 99501 Re: The Application of LINC Energy Operations ) Conservation Order No. XX Inc. for an order granting an exception to the ) spacing requirements of 20 AAC 25.055(a)(2) ) LEA # 1 Gas Exploration Well to provide for the drilling, completion and ) regular production of a gas exploration well ) October X, 2010 within 1500 feet of an adjacent property line ) IT APPEARING THAT: 1. By application dated and received July 26, 2010, LINC Energy Operations, Inc (LINC), Requests the Alaska Oil and Gas Conservation Commission (Commission) issue and order for an exception to the spacing 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 25.054, the Commission published notice of opportunity for a public hearing in the Alaska Journal of Commerce and The Frontiersman on July 29, 2010. 3. 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. 4. One protest to the application and a request for hearing was received by the Commission from CIRI, and the hearing was held at 9:OOam, September 14, 2010. 5. Due to a conflict with the original timing of the hearing, CIRI requsted and received a continuance until 2:30pm, September 14, 2010. 6. CIRI expressed their concern for the selection of the proposed well location and for the protection of correlative rights and requested information from LINC concerning the geology for the proposed location. 7. LINC agreed to present data to CIRI and the Commission granted a continuance until 10:30am, September 20, 2010. 8. At the Continuance at 10:30 am, September 20, 2010, CIRI withdrew their objection to LINC's request for an exception to the spacing requirements of 20 AAC 25.055(a)(2). FINDINGS: 1. LINC is the operator of the proposed LEA # 1 gas exploration well. I • • 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. 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 LINC. 7. A bluff and a housing development prohibit moving the location of the well to the north. 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 # 1 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. To protect the correlative rights of adjacent owners, landowners and operators, LINC shall return to the Commission for resolution of this issue before regular production will be approved. NOW, THERFORE, IT IS ORDERED: LINC's application for exception to the well spacing provision of 20 AAC 25.055(a)(2) for the purpose of drilling, completion and testing of the LEA # 1 well is approved. Regular production of the LEA # 1 is not approved. LINC may proceed with the drilling, completion, and testing of the LEA # 1 as long as it is in compliance the terms of the lease and applicable Alaska Law. DONE at Anchorage, Alaska and dated September X, 2010. Daniel T. Seamount, Jr. Chair • • Alaska Oil and Gas Conservation Commission Cathy P. Foerster, Commissioner Alaska Oil and Gas Conservation Commission John K. Norman, Commissioner Alaska Oil and Gas Conservation Commission RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF Marathon Oil ) Conservation Order No. xxx Company for an order granting an exception ) to the well spacing requirements of 20 AAC ) Ninilchik Unit Susan Dionne No. 6 25.055(a)(4) to allow drilling, completion, ) Gas Development Well testing, and regular production of the proposed ) Susan Dionne No. 6 gas development well ) within 3,000 feet of other wells (in the Ninilchik ) October _, 2008 Unit of the proposed Dionne/Paxton ) Participating Area) that are producing from or capable) of producing from the same intervals. ) IT APPEARING THAT: 1. Marathon Oil Company (MOC), by letter dated May 6, 2008, and received that same day by the Alaska Oil and Gas Conservation Commission (Commission), requests an order providing for an exception to the well spacing requirements of 20 AAC 25.055(a)(4) to allow drilling, completion, testing, and regular production of the Susan Dionne (SD) No. 6 gas development well within 3,000 feet of the SD No. 1, SD No. 2, SD No. 3, SD No. 4, and SD No. 5 wells: the proposed SD No. 6 well may be capable of producing from the same pools (i.e., the Tyonek and Beluga Formations) as the SD No. 1, SD No. 2, SD No. 3, SD No. 4, and SD No. 5 wells. The proposed well and other wells are within the Ninilchik Unit of the proposed Susan Dionne /Paxton Participating Area, Kenai Peninsula Borough, Alaska. 2. On May 9, 2008, pursuant to 20 AAC 25.540, the Commission published in the ANCHORAGE DAILY NEWS notice of the opportunity for a public hearing on June 12, 2008. 3. No protest to the application or request for a hearing was received. 4. The public hearing was vacated on June 10, 2008. FINDINGS: 1. MOC will be the operator of the SD No. 6 well, which will be within the Ninilchik Unit of the proposed Susan Dionne /Paxton Participating Area, Kenai Peninsula Borough, Alaska. 2. The SD No. 6 well is proposed as a deviated gas delineation well with a surface location 1,145 feet from the east line (FEL) and 405 feet from the north line (FNL) of Section 6, T1S, R13W, Seward Meridian (S.M.), and a projected bottom hole location 322 feet FEL, 875 feet FNL, of Section 12, T1 S, R14W, S.M. 3. The SD No. 6 well will target gas reservoirs that can be discontinuous in the Tyonek Formation Ti gas sands and the Beluga Formation gas sands. • • 4. The SD No. 6 well is within 3,000 feet of the SD No. 1, SD No. 2, SD No. 3, SD No. 4, and SD No. 5 wells, which are also within the Ninilchik Unit of the proposed Susan Dionne/Paxton Participating Area. 5. The SD No. 1, SD No. 2, SD No. 3, SD No. 4, and SD No. 5 wells produce from the Tyonek Formation and penetrate Beluga Formation sands that are capable of producing gas. 6. By certified mail, MOC sent notice of the application for an order granting an exception to the well spacing requirements of 20 AAC 25.055 to all owners, landowners, and operators of all properties within 3,000 feet of the anticipated productive intervals of the proposed SD No. 6 well. CONCLUSIONS: 1. Exceptions to 20 AAC 20.25.055(a)(4) are necessary to allow drilling, completion, testing, and regular production of the SD No. 6 gas well. This well is needed to evaluate the Tynoek Formation T1 gas reservoirs and Beluga Formation gas reservoirs in the Ninilchik Unit of the proposed Susan Dionne/Paxton Participating Area. 2. Granting a spacing exception to allow drilling, completion, testing, and regular production of the SD No. 6 well will not result in waste or jeopardize the correlative rights of adjoining or nearby owners. NOW, THEREFORE, IT IS ORDERED: Pursuant to the Commission's authority under AS 31.05.030, and 20 AAC 25.055, the Commission approves MOC's application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling, completion, testing, and regular production of the SD No. 6 well. Because the properties affected by this spacing exception are wholly within the Ninilchik Unit of the proposed Susan Dionne/Paxton Participating Area, MOC may proceed with regular production as long as it complies with the terms of the Ninilchik Unit and proposed Susan Dionne/Paxton Participating Area agreements and all other legal requirements. ENTERED at Anchorage, Alaska, and dated October , 2008. Daniel T. Seamount, Jr., Chair Alaska Oil and Gas Conservation Commission John K. Norman, Commissioner Alaska Oil and Gas Conservation Commission Cathy P. Foerster, Commissioner Alaska Oil and Gas Conservation Commission Conservation Order No. xxx Effective October , 2008 Page 2 of 2 N STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING OE B IN A SHOVTER NO., CERTIFIED A O_02114029 AFFIDAVIT INV D I CA OF PUBLICATION E TRIPLIC (PART TE 2 OF WING THIS AD FOR ER M) WITH ISING ORD ATTACHED COPY ER OF / 1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. March 2, 2011 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (907) 793 —1221 DATES ADVERTISEMENT REQUIRED: o Alaska Journal of Commerce ASAP 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 10 02140100 73451 2 REQUIS O ' DIVISION APPROVAL: 02 -902 (Re / 3 4) Pus S riginal Copies: Department Fiscal, Department, Receiving AO.FRM • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Marathon Oil Company for an exception to the spacing requirements of 20 AAC 25.055(a)(4), for the drilling, completion and regular production of a development gas well, Susan Dionne #7, Ninilchik Unit Susan Dionne /Paxton Participating Area, within 3000 feet of wells capable of producing from the same interval. Marathon Oil Company (MOC), by a letter dated and received February 21, 2011 and received March 1, 2011, requests the Alaska Oil and Gas Conservation Commission (Commission) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill the Susan Dionne #7 development gas well, in the Ninilchik Unit, Susan Dionne / Paxton Participating Area within 3000 feet of wells capable of producing from the same interval. The proposed surface, Top Productive Interval and Bottomhole location of the well are as follows: Ninilchik Unit Susan Dionne #7 Surface Location: 3624 feet from the west line (FWL) and 206 feet from the south line (FSL) of Section 6, T1S, R13W, Seward Meridian (S.M.); Top Productive Interval, Estimated Top of Tyonek; 116' (FWL) and 124' (FSL), of Section 7, T1S, R13W, S.M. Bottomhole Location: 877' (FEL) and 409' (FSL), of Section 12, T1S, R14W, S.M. The Commission has tentatively scheduled a public hearing on this matter for April 19, 2011 at 1:00 pm. To request that the hearing be held, a written request must be filed by 4 :30 p.m. on March 29, 2011. If a request is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold a hearing, call 907 - 793 -1221 after March 30, 2011. Written comments regarding the application may be submitted to the Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on April 15, 2011, except that, if a hearing is held, comments must be received no later than the conclusion of the hearing. If, because of a disability, special accommodatio may be needed to comment or attend the hearing, call 907-793-1221 by April 15, 20 ohn ;(/ orman -. i � ssia er I ,R EcFly ALASKA MAR 1 JournalojCommerce Make Oil gas Can, Alaska Oil & Gas Conservation Commission Inhorage Public Notices FILE NO: AO- 02114029 Ad #: 10147289 AO- 02114029 Dionne spacing AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ATTACH PROOF OF PUBLICATION HERE ALASKA, THIRD DISTRICT BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS Notice of Public Hearing DAY PERSONALLY APPEARED Tracy Allison STATE OF ALASKA WHO, BEING FIRST DULY SWORN, Alaska Oil and Gas Conservation ACCORDING TO THE LAW, SAYS THAT HE IS I Commission THE Accounting Manager OF THE ALASKA Re: The application of Marathon Oil JOURNAL OF COMMERCE PUBLISHED AT 301 I Company for an exception to the ARTIC SLOPE AVENUE, SUITE 350, IN SAID spacing requirements of 20 AAC 25.055(a)(4), for the drilling, comple- THIRD DISTRICT AND STATE OF ALASKA tion and regular production of a de- AND THAT ADVERTISEMENT, OF WHICH THE velopment gas well, Susan Dionne #7, Ninilchik Unit Susan Dionne /Paxton ANNEXED IS A TRUE COPY, WHICH WAS , Participating Area, within 3000 feet of PUBLISHED IN SAID PUBLICATION ' wells capable of producing from the same interval. Marathon Oil Company (M0C), by a 03/13/2011 letter dated and received February 21, 13th DAY OF MARCH 2011 , 2011 and received March 1, 2011, re- , quests the Alaska Oil and Gas Conser- AND THERE AFTER FOR 1 suon Commission (Commission) h sue e an - order r for an exception to the CONSECUTIVE WEEK(S) AND THE 1 spacing requirements of 20 AAC LAST PUBLICATION APPEARING ON 25.055(a)(4) to drill the Susan Dionne #7 development gas well, in the 03/13/2011 Ninilchik Unit, Susan Dionne / Paxton 13th DAY OF MARCH 2011 Participating Area within 3000 feet of wells capable of producing from the same interval. The proposed surface, Top Productive Interval and Bottom - hole location of the well are as fol lows: i Nmilchik Unit Susan Dionne #7 Surface Location: 3624 feet from the Tracy Allison west line (FWL) and 206 feet from the Accounting Manager SUBSCRIBED AND SWORN BEFORE ME THIS 14th DAY OF March 2011 NOTARY PUBLIC STATE OF ALAS MY COMMISSION EXPIRES 6/14/12 ♦� voo. -o�- a9 - NOTARY PUBLIC BELINDA CUMMAINGS STATE OF ALASKA My Commission Expires June 14, 2012 • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE AFFIDAVIT MUST OF BEB IN PUBLICATION TRIPLICATE (PART SHOWING 2 OF THIS ADVERTISING FORM) WITH ATTACHED CO ORDER NO., PY CERTIFIED OF !1 /� O_02114029 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jody Colomhie March 2. 201 1 ° Anchorage_ AK 99501 PHONE PCN M (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: Alaska Journal of Commerce ASAP O 301 Arctic Slope Avenue, Suite 350 Anchorage AK 99518 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 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, March 02, 2011 3:33 PM To: 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); Matt Herrera; 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); 'Aaron Gluzman'; Ben Greene; Bettis, Patricia K (DNR); caunderwood @marathonoil.com; 'Dale Hoffman'; David Lenig; 'Elizabeth Bluemink'; 'Gary Orr; 'Jason Bergerson'; 'Joe Longo'; 'Lara Coates'; Marc Kuck; 'Mary Aschoff; 'Matt Gill'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Steele, Marie C (DNR); Talib Syed; 'Wayne Wooster; 'William Van Dyke'; Woolf, Wendy C (DNR); (foms2 @mtaonline.net); (michael.j.nelson @conocophillips.com); (Von. L. Hutchins @conocophillips.com); 'AKDCWelllntegrityCoordinator; Alan Dennis; alaska @petrocalc.com; Anna Raff; 'Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; Chris Gay; Cliff Posey; Crandall, Krissell; 'D Lawrence'; dapa; Daryl J. Kleppin; 'Dave Matthews'; David Boelens; David House; 'David Scott; David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; Elowe, Kristin; Erika Denman; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Rogers; Gary Schultz (gary.schultz @alaska.gov); ghammons; Gordon Pospisil; Gorney, David L.; 'Greg Duggin'; Gregg Nady; gspfoff; Harry Engel; Jdarlington (jarlington @gmail.com); 'Jeanne McPherren'; Jeff Jones; Jeffery B. Jones (jeff.jones @alaska.gov); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Nicks; John Garing; John Katz (john.katz @alaska.gov); John S. Haworth; John Spain; John Tower; Jon Goltz; Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; 'Kim Cunningham'; Larry Ostrovsky; Laura Silliphant (laura.gregersen @alaska.gov); Marilyn Crockett; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark Kovac; Mark P. Worcester; Marguerite kremer (meg.kremer @alaska.gov); 'Michael Dammeyer; Michael Jacobs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Paul Decker (paul.decker @alaska.gov); 'Paul Figel'; PORHOLA, STAN T; Randall Kanady; Randy L. Skillern; 'Rena Delbridge'; 'Renan Yanish'; rob.g.dragnich @exxonmobil.com; 'Robert Brelsford'; Robert Campbell; 'Rudy Brueggeman'; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy 0 (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; 'Valenzuela, Mariam '; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary J (DNR); Yereth Rosen Subject: Public Hearing Notice Susan Dionne #7 Attachments: Public Hearing Susan Dionne #7.pdf Jodi J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907) 793 -1221 (phone) (907)276 -7542 (fax) 1 • Mary Jones David McCaleb 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 President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 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 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, March 30, 2011 11:07 AM To: caunderwood @marathonoil.com Subject: RE: Public Hearing Notice Susan Dionne #7 The hearing is hereby VACATED. Jody colombie From: Underwood, Charles A. [mailto:caunderwood @marathonoil.com] Sent: Wednesday, March 30, 2011 10:15 AM To: Colombie, Jody J (DOA) Subject: RE: Public Hearing Notice Susan Dionne #7 Jody, wanted to inquire whether the Commission had received any requests concerning the Marathon application for a location exception for the SD #7 well? I believe that yesterday was the deadline for requests to hold a hearing. Thanks, Chick Underwood Charles A. Underwood, Jr. Land Professional Marathon Oil Company Anchorage, AK 907.565.3044 Office 907.242.2424 Cell From: Colombie, Jody (DOA) [mailto:jody.colombie@alaska.gov] ( ) [ olombie @alaska.gov] Sent: Wednesday, March 02, 2011 3:33 PM To: 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); Matt Herrera; Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqua!, 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); Aaron Gluzman; Ben Greene; Bettis, Patricia K (DNR); Underwood, Charles A.; Dale Hoffman; David Lenig; Elizabeth Bluemink; Gary Orr; Jason Bergerson; Joe Longo; Lara Coates; Marc Kuck; Mary Aschoff; Matt Gill; Maurizio Grandi; Ostrovsky, Larry Z (DNR); Richard Garrard; Ryan Daniel; Sandra Lemke; Steele, Marie C (DNR); Talib Syed; Wayne Wooster; William Van Dyke; Woolf, Wendy C (DNR); foms2 @mtaonline.net; michael.j.nelson @conocophillips.com; Von .L.Hutchins @conocophillips.com; AKDCWelllntegrityCoordinator; Alan Dennis; alaska @petrocalc.com; Anna Raff; Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brady, Jerry L; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Gillespie; Brian Havelock; Bruce Webb; Chris Gay; Cliff Posey; Crandall, Krissell; D Lawrence; dapa; Daryl J. Kleppin; Dave Matthews; David Boelens; David House; David Scott; David Steingreaber; ddonkel @cfl.rr.com; Dennis Steffy; Elowe, Kristin; Erika Denman; eyancy; Francis S. Sommer; Fred Steece; Robinson, Gb; Laughlin, Gary A.; Gary Rogers; gary.schultz @alaska.gov; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff; Harry Engel; jarlington @gmail.com; Jeanne McPherren; Jeff Jones; jeff.jones @alaska.gov; Jerry McCutcheon; Womack, Jill H.; Jim White; Jim Winegarner; Joe Nicks; John Garing; john.katz @alaska.gov; John S. Haworth; John Spain; John Tower; Jon Goltz; Judy Stanek; Julie Houle; Kari Moriarty; Zeman, Kaynell J.; Wiles, Keith A.; Kelly Sperback; Kim Cunningham; Larry Ostrovsky; laura.gregersen @alaska.gov; Marilyn Crockett; Mark Dalton; mark.hanley @anadarko.com; Mark Kovac; Mark P. Worcester; meg.kremer @aiaska.gov; Dammeyer, Michael D.; Michael JU�:obs; Mike Bill; Mike Mason; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; nelson; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; paul.decker @alaska.gov; Paul Figel; PORHOLA, STAN T; Randall Kanady; Randy L. Skillern; Rena Delbridge; Renan Vanish; rob.g.dragnich @e>aonmobil.com; Robert Brelsford; Robert Campbell; Rudy Brueggeman; Ryan Tunseth; Scott Cranswick; Scott ; Slemons, Jonne D (DNR); Sondra n ra StewmGriffith; h• Shannon Donnell • Sharmaine Copeland; Shellenbaum, Diane P (DNR); d Stewman; Donnelly; p ( ) Steve Lambert; steve.moothart@alaska.gov; Steven R. Rossberg; Suzanne Gibson; tablerk; Tamera Sheffield; Taylor, Cammy 0 (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Valenzuela, Mariam ; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary 3 (DNR); Yereth Rosen Subject: Public Hearing Notice Susan Dionne #7 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) 2 I L4t • • Marathon P. 0. Box 3128 mum Alaska Production uc Houston, TX 77253 Telephone 713/296 -3477 February 21, 2011 . RE,CEIV EC Mr. Art Saltmarsh Alaska Oil and Gas Conservation Commission MAR 0 1 333 West 7 Avenue, #100 Anchorage, AK 99501- 3539 c crimp= RE: Location Exception Application Marathon Oil Company Ninilchik Unit, - Susan Dionne/Paxton Participating Area Susan Dionne #7 Well Kenai Peninsula Borough, Alaska Dear Mr. Saltmarsh: Marathon Oil Company respectfully requests the following location exception for the referenced well: Surface Location: 3624' FWL & 206' FSL, Section 6, T1S, R13W, S.M. Targets: Estimated Top of Tyonek Production: • Tyonek Productive Interval @ 6720' MD, 3620' TVD 116' FWL & 124' FSL, Section 7, T1S, R13W, S.M. Bottom Hole: Estimated @ 11,794' MD, 7869' TVD 877' FEL & 409' FSL, Section 12, T1S, R14W, S.M. The Susan Dionne No. 7 (SD -7) well is to be drilled as a development well within the Susan Dionne/Paxton Participating Area targeting the Tyonek gas sands in State of Alaska ADL 384372, Cook Inlet Region, Inc. C- 061505 and University of Alaska Tract 21. A location exception is required because the Tyonek productive intervals of the SD -7 well will be within 3,000 feet of wells capable of producing from the same Tyonek interval, as shown in Exhibit "A ". The Susan Dionne No. 5, Susan Dionne No. 6, and Paxton No. 2 well currently produce from the Tyonek interval at the Susan Dionne and Paxton Pads and will be within 3,000 feet of the same Tyonek interval in SD -7. The Paxton No. 4 well is also within 3,000 feet of the SD -7, but does not currently produce from the Tyonek interval. There are no other wells, productive or non- productive, that penetrate the Tyonek within 3,000 feet. This spacing exception is necessary to test the productive potential of the Tyonek gas sands in a timely manner and efficiently drain the Tyonek reservoirs that often have limited drainage areas due to the discontinuous nature of Tyonek sands. Attached is plat (Exhibit "A ") showing the SD -7 surface location and well paths from the Susan Dionne Pad and the Paxton Pad. The Top Tyonek cut point is noted on the SD -7 well path. Also attached is a pre -drill directional survey for the SD -7 well. Furthermore, the parties listed on Exhibit `B" are entitled to notice of this application and have been duly notified. • Location Exception Application Febuary 21, 2011 Marathon Alaska Production LLC Page 2 Ninilchik Unit, Susan Dionne/Paxton PA., Susan Dionne 7 Well Kenai Peninsula Borough, Alaska Should you have any questions related to land or ownership issues, please contact Charles Underwood at 907 -565 -3044, or for questions regarding the technical aspects of this application, please contact David Gorney at 713- 296 -3473. Sincerely, Steven P. Huddleston Subsurface Manager Attachments: Exhibit A Plat Exhibit B Notification List Affidavit — Geological Affidavit — Land Directional Survey III -0 SD -3 7 1 Ns. `�v SD -3 \` *, f.A, NILCH1 1S -14W 1S -13W q 4 416 144 I ' V � ` I i - - o KEN Tl TR 10 PAXTON 3 S 6513'MD/3588'TVD ADL 359242 SUSAN DIONNE 7 WELL � 676O7MD/3653'TVD 3000' NOTIFICATION ` RADIUS O K Tl / S A 5687' D /3608'TVD \ PAXTON 4 7 TYNEK 1 PAXTON 1 665 TR 30 5270 MD 3669'TVD 1 — 17 SD -5 C- 061505 7 TVONEK T1 I 5277'MD/3645'T D v ° oo TR 1. TR8 F \ \ ADL 384372 I I / OPTYONEK f EST. 6720' MI) TR 8 - - Immilemil ' PAXTON 2 . / ADL 384372 0?& P411* ; 411 4I "`" ' " ' : � . , T1 1 , 4 4 1' 'MI 361 'T a \ i / 'RI62 TR21 111' Allk IIW Al 11111116 11111116 �� r 84372 Alaska of TR31 C- 060385 1 � 1 4 82 180 rF Air Air iiit d ► - itrammi IRV o � TR 174 �� Ninilchik Unit Boundary Dionne- Paxton P.A. _. 1 S -1 4 W 15 -13 W Notification Radius Marathon Alaska Production LLC l am / t d1�ti Ninilchik Unit - Dionne/Paxton P.A. 0 �. . - 1:12000 0.50 Susan Dionne #7 - Location Exception R oS a I— a I I I Exhibit "A" !_,.___ o ' MILES Tract Ownership Listed on Exhibit "B" ' NAD27 / Alaska zone 4 (EPSG 26734) February 2011 Q " O Transverse Mercator .41 Clarke Clarke 1866 spheroid Natural origin [15000 00W, 5400 OON] . • EXHIBIT "B" Marathon Alaska Production LLC Ninilchik Unit, Susan Dionne /Paxton P.A. Susan Dionne No. 7 Well Location Notification List Ninilchik Unit Tract # Lease Name Address City /State Zip Marathon Alaska Production LLC PO Box 196168 Anchorage, AK 99519 -6163 Attn: Charles Underwood Union Oil Company of California and PO Box 196247 Anchorage, AK 999519 -6247 Chevron, U.S.A. Attn: Justin R. Black 8 ADL 384372 State of Alaska 550 W. 7th Street, Anchorage, AK 99501 -3580 10 ADL 359242 Department of Natural Resources Ste. 800 185 ADL 390105 Attn: Kevin Banks 10 ADL 359242 James W. White 4614 Bohill San Antonio, TX 78217 10 ADL 359242 James L. Thurman 925 Aurora Fairbanks, AK 99701 10 ADL 359242 Tucscon, Ltd. 5919 77th Southeast Mercer Island, WA 98040 c/o Lloyd Burgess 10 ADL 359242 V. Paul Gavora PO Box 70021 Fairbanks, AK 99707 21 Univ of Alaska University of Alaska 910 Yukon Drive Fairbanks, AK 99775 Tract #2 Land Management 30 C- 061505 Cook Inlet Region, Inc. PO Box 93330 Anchorage, AK 99509 -3330 31 C- 060385 Attn: Kim Cunningham 150 Boyd Daniel Leman 11675 Sterling Highway Ninilchik, AK 99639 162, 163 Fee Carol A. Wilson 2530 Fairmont Ave. Dayton, OH 45419 176, 176A, Fee Carolee Pickett 5336 Holly Loop Turner, OR 97392 177, 182 162, 163 Fee Charles E. Gates 5 Arbor Circle Cincinnati, OH 45255 176A Fee David M. & Jeanine B. Shea PO Box 394 The Dalles, OR 97338 162, 163 Fee George A. Gates 308 Village Ln. Greensboro, NC 27409 176, 177, Fee Gregory A. & Darlene M. Rozak PO Box 710 Kasilof, AK 99610 182 148 Fee James Sabrowski 2730 Kinfisher Anchorage, AK 99502 -1666 156A Uncommitted Jane Walsh 211 Grandview Ave. Tonawanda, NY 14223 176, 177, Fee John L. & Nancy Stengl N12003 Cedar Rd. Birnamwood, WI 54414 -8737 182 176, 176A Fee Judith Ballentine PO Box 9 Veguita, NM 87062 177, 182 162, 163 Fee Katherine Lunne 2530 Fairmont Ave. Dayton, OH 45419 151 Kenai Peninsula Borough 144 N. Binkley Street Soldotna, AK 99669 149, 156, Uncommitted Laura Lee Tieman Life Estate PO Box 39142 Ninilchik, AK 99639 161 c/o W. Lee McKinley 148 Fee Leonard J . & Juanita Sabrowski 3430 Chippewa Ct. West Linn, OR 97068 Revocable Trust 156A Uncommitted Nancy McKinley 5725 Sunset Lane Mukilteo, WA 98275 162, 163 Fee Patricia Webster 887 Fawn Hill Dr. Edgewood, KY 41017 156A Uncommitted Sally Kent 2907 N. Procter St. Tacoma, WA 98407 153 Uncommitted Steve Bates PO Box 39664 Ninilchik, AK 99639 153 Uncommitted Rebecca Bates PO Box 186 Clam Gulch, AK 99568 c/o Rebecca Harris • • AFFIDAVIT Comes now David Gorney, and first being duly sworn upon his oath, states and deposes as follows: 1. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past two years I have worked as a geologist for Marathon Alaska Production LLC (Marathon) on the Alaska Asset Team. My responsibilities have included geology of the Cook Inlet/Kenai Peninsula Areas. 4. That I have been responsible for the geological work related to a Location Exception application for the Marathon Susan Dionne No. 7 Well (SD -7) with a surface location in Section 6, T1S, R13W, S.M. and bottom hole location in Section 12, T1S, R14W, S.M. 5. The SD -7 well targets gas bearing Tyonek reservoirs. 6. The SD -7 well is to be drilled as a development well within the Susan Dionne/Paxton Participating Area targeting the Tyonek gas sands in State of Alaska ADL 384372, Cook Inlet Region, Inc. C- 061505 and University of Alaska Tract 21. A location exception is required because the Tyonek productive intervals of the SD -7 well will be within 3,000 feet of wells capable of producing from the same Tyonek interval, as shown on Exhibit "A" of the Location Exception Application. The Susan Dionne No. 5, Susan Dionne No. 6, and Paxton No. 2 well currently produce from the Tyonek interval at the Susan Dionne and Paxton Pads and will be within 3,000 feet of the same Tyonek interval in SD -7. The Paxton No. 4 well is also within 3,000 feet of the SD -7, but does not currently produce from the Tyonek interval. There are no other wells, productive or non - productive, that penetrate the Tyonek within 3,000 feet. This spacing exception is necessary to test the productive potential of the Tyonek gas sands in a timely manner and efficiently drain the Tyonek reservoirs that often have limited drainage areas due to the discontinuous nature of Tyonek sands Further affiant sayeth not. � 2 Z 2. ij ll David Gorney (affiant) Da t� STATE OF TEXAS ) )ss. COUNTY OF HARRIS ) This certifies that on / 22 , 2011, before me, a notary public in and for the State of Texas, duly commissioned and sworn, ersonally appeared David Gorney of Marathon Alaska Production LLC, known to me to be the person described in, and who executed the foregoing affidavit, who then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in 's e� f, ate first written. NOTARY PUBLIC in and for Texas , 5 121 1 201 ?-- �► = o :� , - ; GE JEA N . WALKE ti My Commission Expires: _• It t. • _= Notary Public, State of Texas ti ? ' ' Commission Expires 05 -21 -2012 l�' lJJ '- .rllllllJJ"l- /�- r- //'Illlll • • AFFIDAVIT Comes now Charles A. Underwood, Jr., and first being duly sworn upon his oath, states and deposes as follows: 1. That I am over the age of 21 years and mentally competent to make this affidavit. 2. That I am knowledgeable and fully informed concerning the facts contained in this affidavit. 3. That for approximately the past two years I have worked as a Landman for Marathon Alaska Production LLC (Marathon). 4. That I assisted in preparing a notification list for a Location Exception application for the Marathon Susan Dionne No. 7 Well (SD -7) with a surface location in Section 6, T1S, R13W, S.M. and bottom hole location in Section 12, T1S, R14W, S.M. 5. That on or about itll d'a / , 2011 Marathon employees mailed notice of the SD -7 Well Location Exception application to all of the mineral owners, working interest owners, and overriding royalty owners within a 3,000 foot radius of the proposed well location by certified mail, return receipt requested. A list of these noticed owners is attached to this affidavit as Exhibit `B." The postal return receipts will be made available for inspection by proper parties. These notices were mailed to their last known address or record address, and I believe that we have mailed the notice letters to good current addresses. In view of the foregoing facts, affiant herein states and deposes that Marathon, as operator of the proposed SD -7 well, has made a reasonable and diligent effort to identify, locate and contact all parties legally due notice of the said Location Exception application. Further affiant sayeth not. ./ e-vk Zo i D Charles A. Underwood, Jr. (affiant) Date STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTTRICT � �) � This certifies that on /`�(��11./Uv , 2011, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared Charles A. Underwood of Marathon Alaska Production LLC, known to me to be the person described in, and who executed the foregoing affidavit, who then after being duly sworn according to law, acknowledged to me under oath that she executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in his certificate first above written. NOTARY PUB Its' and for Alaska STATE OF ALASKA, - NOTARY PUBLIC•, My Commission Expires: _ Betty J. Veldhuis c , My Commission Expires June 13, 2013 Planned Wellpath Report BAKER FARI Susan Dionne #7 Version #5 HUGHES MARATHON Page 1 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot SD #7 Area Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 Field Ninilchik Field (NAD83) Wellbore Susan Dionne #7 Facility Susan Dionne REPORT SETUP INFORMATION glit tion - SYstem NAD83 / TM Alaska State Plane, Zone 4 (5004), US feet Software System WellArchitect( 2.0 Reference True User Jonethoh Scale 0.999994 Report Generated 1/5 /2011 at 2:18:47 PM Convergence at slot 1.36° West Database /Source file WA _Anchorage/Susan_Dionne_#7.xml a WELLPATH LOCATION Local coordinates Grid coordinates Geographic coordinates North[ft] East[ft] Easting[USft] I Northing[USft] Latitude Longitude Slot Location 368.36 - 1105.60 1353364.96 2236599.18 60 °06'46.689 "N 1 151 °34'24.991 "W Facility Reference Pt 1354461.50 2236204.70 60 °06'43.062 "N 151 °34'03.175 "W Field Reference Pt 1371967.44 2251649.81 60 °09'19.105 "N 151 °28'24.639 "W WELLPATH DATUM Calculation method Minimum curvature Glacier #1 (RKB) to Fac Vert Datum 162.00ft ontal Reference Pt Slot Glacier #1 (RKB) to Mean Sea Level 162.00ft al Reference Pt Glacier #1 (RKB) Facility Vertical Datum to Mud Line (Facility) 0.00ft MD Reference Pt Glacier #1 (RKB) Section Origin N 0.00, E 0.00 ft Field Vertical Reference Mean Sea Level Section Azimuth 221.70° s- Planned Wellpath Report BAKER Susan Dionne #7 Version #5 HUGH 1-7-°k MARATHON Page 2 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company % Slot SD #7 Area Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 Field Ninilchik Field (NAD83) Wellbore Susan Dionne #7 Facility Susan Dionne IWELLPATH DATA (127 stations) t = interpolated/extrapolated station 1 1 Course Length Inclination ; Azimuth TVD � Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments ] [ft] [ [ [ft] [ft] [ft] [ft] [sry ft] [sry ft] [ °/100ft] [ [ ° /100ft] 0.00 0.00 0.000 226.000 0.00 0.00 0.00 0.00 ' 1353364.96 2236599.18 0.00 0.11 0.00 *.t RKB:162' 100.00# 100.00 0.000, 226.000 100.00 0.00 0.00 0.00 1353364.96 2236599.18 0.00 0.00 0.00 200.00t 100.00 0.000 226.000 200.00 0.00 0.00 0.00 1353364.96 2236599.18 0.00 0.00 0.00 300.00ti 100.00 0.000 226.000 300.00 0.00 0.00 0.00 1353364 96 2236599.18 0.00 0.11 0 " 500.00t! 100.00 5.000 226.000 499.87 4.35 -3.03 -3.14 1353361.75 2236596.23 5.00 5.00 0.00 600.00f 100.00 10.000 226.000 598.99 17.36 -12.09 2236587.39 5.00 5.00 0.00 700.00t 100.00 15.000 226.001 696.58 38.94 11111111Mil -28.09 1353336.23 2236572.73 5.00 5.00 0.00 800.00f 100.00 20.001 226.000 791.93 68.91 -48.01 -49.71 1353314 12 2236552 37 5.00 5.00 0.00 1000.00f 100.00 30.000 226.000 972.96 153.09 - 106.65 - 110.44 1353252.02 2236495.19 5.00 5.00 0.00 1100.00t 100.00 35.000 226.000 1057.27 206.65 -143.96 - 149.07 1353212.50 2236458.81 5.00 5.00 0.00 1200.00f 100.00 4.0.000 226.000 1136.58 267.34 - 186.23 - 192.85 1353167.73 2236417.59 5.00 5.00 0.00 1300.00f 100.00 45.000 226.000 1210.28 334.69 - 233.15 - 241.43 1353118.05 2236371.85 5.00111 0.00 J 1500.00f 100.00 55.111 226.111 1338.68 487.27 - 339.44 - 351.50 1353005.48 2236268.21 5.00 11 0.11 600.00f 100.00 60.000 226.111 1392.39 571.34 - 398.01 - 412.15 1352943.45 2236211.10 5.00 t 1 0.00 85.42 64.271 226.111 1432.31 646.63 - 450.46 - 466.46 1352887.91 2236159.96 5.00 5.00 0.00 End of Build / Csg Pt 11.00 14.58 64.271 226.001 1438.64 659.73 - 459.58 - 475.91 1352878.25 2236151 07 0.00 0.00 0.00 ri 1900.00f 100.00 64.271 226.111 1525.46 839.39 - 584.74 - 605.51 1352745.70 2236029 03 i 0.00 0.00 0.00 2000.00f 100.00 64.271 226.111 1568.87 929.22 - 647.32 - 670.32 1352679.43 2235968.01 0.00 0. t 1 0.00 2100.00t 100.00 64.271 226.001 1612.28 1019.05 - 709.89 - 735.12 1352613.15 2235907.00 0.00 0.01 0.00 2200.00f 100.00 64.271 226.111 1655.69 1108.89 -772.47 - 799.92 1352546.88 2235845.98 0.00 0.01 0.00 2400.00f 100.00 64.271 226.001 1742.52 1288.55 - 897.63 - 929.52 1352414.33 2235723.94 0.00 0.11 0.00 2500.00f 100.00 64.271 226.000 1785.93 1378.38 - 960.21 - 994.33 1352348.06 2235662.93 0.00 0.00 0.00 2600.00t 100.00 64.271 226.000 1829.34 1468.21 - 1022.79 -1059.13 1352281.79 2235601.91 0.00 0.00 0.00 2700.00f 100.00 64.271 226.001 1872.75 1558.05 - 1085.37 ' - 1123.93 allEEEMEO 2235540.89 0.00 0.00 0.00 Planned Wellpath Report BAK Susan Dionne #7 Version #5 HUGHES MARATHON Page 3 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot SD #7 Area Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 Field INinilchik Field (NAD83) Wellbore Susan Dionne #7 Facility Susan Dionne I A4 PATH DATA (127 stations) t = interpolated/extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate Turn Rate Comments ft] [ft] [ [ [R1 [ft] [ft] [ft] [sry ft] [sry ft] [ ° /100ft] [ °/100ft] [°/100ft] 900.001' 100.00 64.271 226.000 1959.57 1737.71 - 1210.53 - 1253.54 1352082.97 2235418.86 0.00 0.00 0.11 3000.001' 100.00 64.2711 226.000 2002.99 1827.54 -1273.10 -1318.34 1352016.69 ` 2235357.84 0.00 0.00 0.11 3100.001' 100.00 64.271' 226.0001 2046.40 1917.37 -1335.68 -1383.14 1351950.42 2235296.82 0.00 0.11 0.11 3200.001' 100.00 , 64.271; 226.0001 2089.81 s 2007.21 - 1398.26 - 1447.94 1351884.15 2235235.80 0.00 0.11 0.1 1 , 3400.001' 100.00 ; 64.271 226.000 2176.63 ` 2186.87 -1523.42 - 1577.55 1351751.60 2235113.77 0.00 0.00 0.11 3500.00 100.00 64.271 226.000 2220.04 2276.70 -1586.00 - 1642.35 1351685.33 2235052.75 0.00 0.00 0.1 3600.001' 100.00 64.271 226.000 2263.45 2366.53 - 1648.58 - 1707.15 1351619.05 2234991.73 0.00 0.01 0.11 3700.001' 100.00 64.271 226.111 2306.87 2456.37 - 1711.16 - 1771.95 1351552.78 2234930.72 0.00 0.11 0.11 3900.001' 100.00 64.271 226.111 2393.69 2636.03 - 183631 - 1901.56 1351420.23: 2234808.68 , 0.00 0.00 0.00 4000.00 100.00 64.271 226.111 2437.10 2725.86 - 1898.89 -1966.36 1351353.96 2234747.66 0.00 0.00 0.00: egin Left Turn 4100.001' 100.00 64.211 223.225 2480.57 2815.80 - 1963.00 - 2029.60 1351289.21 ! 2234685.08 2.50 -0.06 - 2.78 4200.001' 100.00 64.203 220.448 2524.09 2905.82 - 2030.07 -2089.65 1351227.58 2234619.46 2.50 -0.01 -2.78 4328.71 28.71 64.271 216.876 2580.05 3021.55 - 2120.57 - 2162.05 1351153.04 ' 2234530.71 2.50 0.08 -2.77 - d of Turn 4400.00t 71.29 64.271 216.876 2610.99 3085.54 - 2171.94 - 2200.591 1351113.30 2234480.28 0.00 0.00 0.11' 11.001' 100.00 64.271 216.876 2654.40 3175.31 - 2244.00 - 2254.65 1 1351057.54 2234409.52 0.00 0.00 0.11 .11.001 100.00 64.271 216.87. 2697.82 3265.08 - 2316.06 - 2308.71 1 1351001.78 2234338.77 0.00 0.00 0.00 4800.00t` 100.00 64.271 216.87. 2784.64 3444.61 - 2460.19 - 2416.83 j 1350890.26 2234197.261 0.00 0. r1 0.00 4900.001' 100.00 64.271 216.87.' 2828.05 3534.38 - 2532.25 - 2470.88 € 1350834.50 2234126.50 0.00 0.00 0.00 5000.001 100.00 64.271 216.87. 2871.46 3624.14 - 2604.31 - 2524.94 1350778.74 2234055.75 0.00 0.00 0.00 5100.001' 100.00 64.271 216.87. 2914.87 3713.91 -2676.38 -2579.00 1350722.98 2233984.99 0.00 0.01 0.00 5300.001' 100.00 64.271 216.876 3001.70 3893.44 -2820.50 4 1.18 1350555. 0 �;' ► t 4 0.00 0.00 0.00 5400.001' 100.00 64.271 216.876 3045.11 3983.21 92.56 5500.001 100.00 64.271 216.876 3088.52 4072.98 - 2964.63 -2795.24 1350499.95 2233701.98 0.00 0.00 0.01 El= 5600.0011 100.00 64.271 216.87. 3131.93 4162.75 - 3036.69 - 2849.30 1350444.19 2233631.22 0.00 0.00 0.11 i Planned Wellpath Report BAKER Susan Dionne #7 Version #5 HUGHES MARATHON Page 4 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot SD #7 Area Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 „Field Ninilchik Field (NAD83) Wellbore ' Dionne #7 Facility Susan Dionne LLPATH DATA (127 stations) t = interpolated/extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect North East Grid East Grid North DLS Build Rate [ Turn Rate (Comments ft] [ft] [ [ [ft] [ft] [ft] [ft] [sry ft] [sry ftj [° /IOOft] [ ° /100ft] [ ° /lOOft] 800.00f 100.00 64.271 216.87. 3218.75 4342.28 - 3180.82 - 2957.42 1350332.67 2233489.71 0.00 0.001 0.00 5900.001- 100.00 64.271 216.876 3262.17 4432.05 -3252.88 -3011.47 1350276.91 2233418.96 0.00 0.00 0.00 6000.00f 100.00 64.271 216.876 3305.58 4521.81 -3324.94 - 3065.53 1350221.15 ; 2233348.20 0.00 0.005 0.00 6100.00f 100.00 64.271 216.876 3348.99 4611.58 = - 3397.00 - 3119.59 1350165.39 2233277.45 0,00 0,00 0,00 W. ..... ..... _.. .,.. , ' _ .,,... , a 6300.00f 100.00 64.271 216.876 3435.81 4791.11 allnalLEIIINSMI 1350053.87 2233135.94 0.00 0.00 0.00 6400.001 100.00 64.271 216.876 3479.22 4880.88 - 3613.19 - 3281.77 1349998.11 2233065.18 0.00 0.00 0.00 6500.001- 100.00 64.271 216.876 3522.64 4970.65 - 3685.26 -3335.83 1349942.35 2232994.43 0.00 0.00 0.00 6600.00f 100.00 64.271 216.87. 3566.05 5060.41 - 3757.32 - 3389.89 1349886.60 2232923.67 0.00 0.00 0.00 6800.001 100.00 64.271 216.876 3652.87 5239.95 - 3901.44 - 3498.01 1349775.08 2232782.16 0.00 0.00 0.00 62.07 64.271 216.87. 3679.82 ' 5295.66 - 3946.17 - 3531.56 1349740.47 2232738.25 0.00 0.00 0.00 eg git a 6900.00f 37.93 64.258 217.929 3696.29 5329.74 -3973.32 - 3552.31 1349719.07 11..1 2.50 -0.03 2.78 7000.001- 100.00 64.261 220.704 3739.72 5419.72 - 4043.00 - 3609.38 1349660.37 2232643 31 2.50 0.00 2.78 7100.001 71.32 64.271 221.500 3783.14 5509.81 - 4110.58 - 3668.94 1349599.22 2232577.16 0.00 0.00 0.00, 7200.00f 100.00 64.271 221.500 3826.55 5599.89 - 4178.05 - 3728.63 1349537.94 2232511.13 0.00 0.00 0.00 Ir 8.68 28.68 64.271 221.500, 5625.73 0.00 0.001 0 00IUT1B Coal �y :.1 1-.l ► 64.271 1 3861.28 5671.96 - 4232.03 - 3776.38 1349488.91 22i248.30 0.00 0.00 0 00 Be g m Angle Drop 7400.00f 100.00 61.271 IIIBIEE 3916.18 5778.65 - 4311.94 - 3847.08 1349416.33 2232380.11 2.501 -2.501 0,001 7500.00f 100.00 58.771 221.511 3966.14 5865.26 - 4376.81 - 3904.47 1349357.41 2232316.62 2.50 - 2.50' 0.00 7600.001 100.00 56.271 221.500 4019.84 5949.61 -4439.98 - 3960.36 1349300.03 2232254.79 2.50 -2.50 0.00E 7700.001- 100.00 IIIIMilagj 221.511 4077.16 6031.54 - 4501.34 - 4014.65 1349244.30 2232194 74 2.50 -2.50 0.00i 7900.001 100.00 48.771 221.511 4202.25 6187.51 - 4618.16 - 4118.00 1349138.20 2232080.42 2.50 -2.50 0. 8000.001 100.00 46.271 221.500 4269.77 6261.26 - 4673.39 - 4166.87 1349088.03 2232026.37 2.50 -2.50 0.001 8100.001 100.00 43.771 221.500 4340.45 6331.99 - 4726.37 - 4213.74 1349039.91 2231974.52 2.50 -2.50 0.00 8200.001 100.00 41.271 221.511 4414.15 6399.57 -4776.981 - 4258.52 1348993.94 2231924 99 2.50 - -2.50' 0.00 Planned Wellpath Report BAKE R Susan Dionne #7 Version #5 HUGHES MARATHON Page 5 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot SD #7 =MI Cook Inlet, Alaska (Kenai Peninsula) ganallill Susan Dionne #7 Field Ninilchik Field (NAD83) "' Welibore Susan Dionne #7 MIMI. Susan Dionne 1WELLPATH DATA (127 stations) t = interpolated/extrapolated station mn j Course Length Inclination Azimuth TVD Vert Sect North Grid East Grid North DLS Build Rate Turn Rate omments [ft] [ft] [1 [ [ft] [ft] [ft] Mil [sry a] [sry ft] [ ° /100ft] [ ° /100ft] [ °rl00ft] 8400.001. 100.00 36.271 221.500 4570.03 6524.77 - 4870.75 -4341.48 1348908.77 , 2231833.22 2.50 - 2.50 0.00 8500.001 100.00 33.771 221.500 4651.92 6582.16 - 4913.73 - 4379.50 1348869.74 2231791.16 2.50 -2.51 0.00 8600.00t 100.00 31.271 221.500 4736.23 6635.91 - 4953.99 - 4415.12 1348833.17 2231751.76 2.50 -2.51 0.11 8700.00t 100.00 28.771 221.500 4822.81 668 - 4991.46 -4448.27 1348799.14 2231715.09 2.50 -2.5 0,00 8900.001 100.00 23.771 221.500 5002.09 6774.43 - 5057.74 - 4506.91 1348738.94 2231650.23 2.50 , -2.50 0.00 9000.00t 100.00 21.271 221.500 5094.46 6812.73 - 5086.42 -4532.29 1348712.88 2231622.16 2.50 -2.50 0.00 9100.001 100.00 18.771 221.501 5188.41 6846.97 - 5112.06 - 4554.97 1348689.59 2231597.07 2.50 -2.50 0.00 9200.001 100.00 16.271 221.500 5283.76 6877.07 i - 5134.61 - 4574.92 1348669.12 2231575.00 2.50 -2.50 0.00 9400.001 100.00 11.271 221.500 5477.95 6924.66 - 5170.26 - 4606.45 1348636.74 2231540.12 2.50 2.51 0.00 9500.00t 100.00 8.771 221.500 5576.42 6942.06 -5183.29 - 4617.98 1348624.90 2231527.36 ! 2.501 -2.50 0.00 9600.001 100.00 6.271! 221.511 5675.55 6955.15 - 5193.09 - 4626.66 1348616.00 2231517.77 2.50' -2.51 0.00 I 9700.001 100.00 3.771 221.501 5775.16 6963.90 - 5199.64 - 4632.45 1348610.05 2231511.36 2.50 -2.51° 0.00 9850.84 50.84 0.0 22 1.501 5925.89 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 � 2.50 -2.51 0.00 � nd of Drop 9900.001 49.16 0.111 221.501 5975.05 ! 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 ° 0.00 0.00 r 111.001 100.00 0.111 221.500 6075.05 6968.86 - 5203.36 - 4635.74 , 1348606.67 2231507.721 0.00 ; 0.11 0.00 4100.00t 100.00 0.111 221.500 6175.05 6968.86 - 5203.36 -4635.741 1348606 67 2231507 72 0 0.11 0.00 10300.001 100.00 0.0001 221.500 6375.05 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.00 0.00 10400.001 100.00 0.000 221.501 6475.05 6968.86 -5203.36 - 4635.74 1348606.67 2231507.72 0,00 ; 0.11 0.00 10500.001 100.00 0.000 221.501 6575.05 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.11 0.00 10600.001 100.00 0.000 221.500 6675.05 6968.86 ! - 5203.36 -4635.74 1348606.67 2231507.72 0.00 0.00 0.00 10766.95 66.95 0.000 221.501 6842.00 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.00 0.11 81 Coal Horizon 10800.001 33.05 0.001 221.501 6875.05 6968.86 - 5203.36 -4635.74 1348606.67 2231507.72 0.00 0.00 0.00 10900.001' 100.00 0.000 221.501 6975.05 6968.86 - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.11 0.00 11000.001 100.00 0.000 221.501 7075.05 6968.86 - 5203.36 - 4635.74 1348606.67 2231507 72 0.00 0.00 0.00 Planned Wellpath Report BAKE R Susan Dionne #7 Version #5 HUGHES MARATHON Page 6 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot SD #7 Area .Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 Field Ninilchik Field (NAD83) `Wellbore Susan Dionne #7 Facility Susan Dionne ,WELLPATH DATA (127 stations) t = interpolated/extrapolated station MD Course Length Inclination Azimuth TVD Vert Sect I North 1 East Grid East Grid North DLS Build Rate Turn Rate omments [ft] [ft] 1 [ °] [[ °] I [ft] [ft] ' [ft] [ft] [sry ft] [sry ft] [ ° /lOOft] .... [ ° /lOOft] [ ° /lOOft] 1200.00 100.00 0.000 221.500 7275.05 6968.86 ? - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.00 0.00 11300.00 11400.00j 100.00 0.000 221.500 7475.05 6968.86 f - 5203.36 - 4635.74 1348606.67 2231507.72 0.00 0.00 0.00 100.00 0.000 221.500. 7375.05 6968.86 i -5203.36 -4635.74 1348606.67 2231507.72 0,00 0.00 0.00 j 11500.00t1 100.001 0.000 221.500. 7575.05 6968.86 1 - 5203.36 - 4635.74 1348606.67 2231507,72 0.00 0.00 0.10 11700.001 100.00 0.000 221.500 7775.05 6968.86 1 - 5203.36 - 4635.74 1348606.67 2231507.72 0,00 0.00 0.00E 11793.95 93.95 0.000 221.500, 7869.00 6968.86 I - 5203.361 - 4635.74 1348606.67 2231507.72 0,00 0.00 0.00;T135 Coal Horizon HOLE & CASING SECTIONS Ref Wellbore: Susan Dionne #7 Ref Wellpath: Susan Dionne #7 Version #5 String/Diameter Start MD End MD Interval Start TVD End TVD Start N/S Start E/W End N/S ] End E/W [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] [ft] 13.5in Open Hole 0.00 1685.42 1685.42 0.00 1432.31 0.00 0.00 - 450.46 - 466.46 10.75in Casing Surface 0.00 1685.42 1685.42 0.00 1432.31 0.00 0.00 - 450.46 - 466.46 9.875in Open Hole 1685.42 7028.68 5343.26 1432.31 3752.18 -450.46 - 466.46 - 4062.46 - 3626.36 7.625in Casing Intermediate 0.00 7028.68 7028.68 0.00 3752.18 0.00 0,00 -4062.46 - 3626.36 6 Open Hole 7028.68 11793.95 4765.27 3752.18 7869.00 -4062.46 3626,36 5203,36 -4635.74 r . •i g • • • • i u t t 11793.95 11793.95 0.00 7869.00 0.00 0.00 - 5203.36 - 4635.74 Planned Well path Report BAKER p p Susan Dionne #7 Version #5 HUGHES MARATHON Page 7 of 7 INTEQ REFERENCE WELLPATH IDENTIFICATION Operator MARATHON Oil Company Slot :SD #7 Area Cook Inlet, Alaska (Kenai Peninsula) Well Susan Dionne #7 Field Ninilchik Field (NAD83) Wellbore Susan Dionne #7 Facility Susan Dionne TARGETS e MD TVD North € East Grid East I Grid North Latitude Longitude Shape [ft] [ft] [ft] [ft] [sry ft] [sry ft] 7228.68 a ,v ° : ° circle 1) SD #7 UT1B Coal (NAD83)19- Nov -10 �� -s 6842.00 -5187.76 - 4626.37 1348616.41 2231523.091 60 °05'55.588 "N1 151 °35'56.238 "W circle SD #7 T81 Coal (NAD83) 19- Nov -10 SD #7 T135 Coal (NAD83) Revised 05- Jan -11 7869.00 - 5209.24 - 4645.87 1348596.41 2231502.091 60 °05'55.377 "N 151 °35'56.622 "WI circle SURVEY PROGRAM Ref Wellbore: Susan Dionne #7 Ref Wellpath: Susan Dionne #7 Version #5 Start MD End Ml) Positional Uncertainty Model Log Name /Comment Wellbore [ft] [ft] 0.00 1685.42NaviTrak (Magcorrl) Susan Dionne #7 1685.42 7028.68 AutoTrak G3 (MagCorr) Susan Dionne #7 7028.68 11793.95 OnTrak (MagCorr) Susan Dionne #7 i SD -3 , SD -3 N ' ' ' ' . . . \ C r (4% ' y vat' • 4 ,, ,,,;',,,,„. 2 . y a,� .rtY ` T' 1 \ 2 NINTL UNIT DIQNNE— PA)(T(JN P.A. 1 1S -14W 1S -13W r`_ " ' III ti �- . __ _• .. ._ ...._ _ �__... - -...� N T. _. — _ --- L...... _._ _.. 1-.—/ IONEK T1 TR 10 / '' PAX r ' . TON 3 6513'MD/3588'TVD a' SD -4 ADL 359242 � 1— • -- /° } , 7 ---- SUSAN DIONNE 7 WELL ' `� / 6767'MD/3653'TVD 4 3000' NOTIFICATION / /r RADIUS .\" YO .EKT1 3 /r . SD-6 5687'MD/3608'TVD / _________, I /,� PAXTON 4 I / 7 ~ a s ' /"TYONB T1 j TYONEK 4d 5270'14ID/3669'TVD . PAXTON 1 6659'MD/3598'TVD TR 30 1 1 ' ' C- 061505 T ONEI� T1 4 1. S ` ` t y,' _, ,,�,. 527TMD/3645' �'YD I' ch 4 TR 8 f I F .,-- _Tit 1:1. —__________---- , \ ADL 384372 '-< 0 1 153 I. PAXTON 2 '. ADL 38437_.. ii i TR - * `° // \ , i TY T1 - \ \ !� ,'\ l 3 2, 36 0, P y ' / // — / 16 2 2 ' ' ' — ) TR 21 56 T 1 /i 77_ v SIB 79'' 1 Univ of — �— "� �M y -— , ,/ / , , , — —.. — ; = sr j Alaska ._. ....„ i 31 __ / ,; � / / i � �� ; / - TR 8 TR 31 C- 060385 / 61 • v / / / / ADL 384372 C- 060385 i / 4 / TR 163 /182 I - N, .. -- Z— LA - '-- /----- - — 180 - 82— AL , ______ _ _____ _____." /8' I L—// ......1,,tp p�. 182 - p `c' Ninilchik Unit Boundary TR 174 ---....... ___—......... —._ -_ . —_` -- / - -_. — _ — Dionne — Paxton P.A. - - - - -.. ___ —__—__ 1S -14W 1S -13W 0 Notification Radi --- - - - - -- - - -- - - - - -- Marathon Alaska Production LLC • �e� oii ,,, , ,,,....,.,,,,,,, � Ninilchik Unit— Dionne/Paxton P.A. a ' €' 1:12000 Susan Dionne #7 — Location Exception . 0 0.50 '� ... __ ,�- . -1 -a I I-- -- ..� Exhibit A „ r y a a : MILES Tract Ownership Listed on Exhibit "B NAD27 / Alaska zone 4 (EPSG 26734) February 2011 Transverse Mercator Clarke 1866 spheroid Natural origin: [15000 00W, 54 00 0ONJ 1