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Home My WebLink AboutCO 655 • • 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. C—O l0 S 5' Order File Identifier Organizing (done) ❑ Two -sided I 111 III I III ❑ Rescan Needed II 11111 III III RESCAN DIGITAL DATA OVERSIZED (Scannable) j"Co • r Items: ❑ Diskettes, No. ❑ Maps: g Greyscale Items: I i° ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: AM Date: /s/ ( 4 Project Proofing 1111111111 I J 9► BY: CA aria Date: 3 g i a /s/ Ill f Scanning Preparation x 30 = + = TOTAL PAGES a. 1 n (Count does not include cover sheet) y r BY: Maria Date: 3 g / l /s/ Production Scanning I Stage 1 Page Count from Scanned File: elk (Count does include cove sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: ( Date:?/// g /s/ 04 / Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ i is required. Scanning is complete at this point unless rescanning s equ e d. 1111111111111 IIII ReScanned 1111111111 IIIII BY: Maria Date: /s/ Comments about this file: Quality Checked III III 111111I1I III 1/17/2012 Orders File Cover Page.doc • • INDEX CONSERVATION ORDER NO. 655 MILNE POINT UNIT 1. September 22, 2011 BPXA request for spacing exception 2. October 6, 2011 Notice of Hearing, affidavit of publication, bulk mailing list, email list • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF BP Exploration ) Docket CO -11 -37 (Alaska) Inc. for an exception to the spacing ) Conservation Order No. 655 requirements of 20 AAC 25.055(a)(3) to drill ) and complete a development oil well within the ) Milne Point Unit S -39 same governmental quarter section as wells ) Oil Development Well that are, or may be capable of, producing from ) January 18, 2012 the same pool. ) 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 18th day of January, 2012. BY DIRECTION OF THE COMMISSION n (l OL' --- JoJ. of mbie Spejial Assistant to the Commission III 01) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF BP Exploration ) Docket CO -11 -37 (Alaska) Inc. for an exception to the spacing ) Conservation Order No. 655 requirements of 20 AAC 25.055(a)(3) to drill ) and complete a development oil well within the ) same governmental quarter section as wells ) Milne Point Unit S - 39 ) that are, or may be capable of, producing from Oil Development Well the same pool. January 18, 2012 IT APPEARING THAT: 1. On October 5, 2011, BP Exploration (Alaska) Inc. (BPXA) requested the Alaska Oil and Gas Conservation Commission (AOGCC) grant an exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete the Milne Point Unit S - 39 development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the AOGCC published notice of opportunity for a public hearing in the Alaska Journal of Commerce on October 16, 2011. 3. BPXA has provided the AOGCC 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 1000 feet of the Milne Point Unit S -39 well. 4. No protest to the application or request for hearing was received. 5. Because BPXA provided sufficient information upon which to make an informed decision, BPXA's request can be resolved without a hearing. 6. The public hearing was vacated on November 14, 2011. FINDINGS: 1. BPXA currently owns and operates the State leases affected by Milne Point Unit S -39 (ADL0380109 and ADL0380110). Leases ADL0380109 and ADL0380110 are both committed in their entirety to the Milne Point Unit. 2. BPXA is the operator of the proposed Milne Point Unit S -39 oil development well. 3. Milne Point Unit S -39 is a oil development well with a surface location of 3232 feet from the south section line (FSL) and 489 feet from the west section line (FWL) of Section 12, T12N, R11E, Umiat Meridian (U.M.) and a proposed bottom -hole location 2614 feet FSL and 1276 FWL Section 7, T12N, R1 1E, U.M.. Order 655 OD Oil January 18, 2012 Page 2 of 3 4. The Milne Point Unit S -39 well targets oil reservoirs in the Ugnu sands of the Prince 1 Creek Formation. 5. BPXA began drilling Milne Point Unit S -39 on January 2, 2009 and reached a total depth of 4881 feet measured depth (3729 feet true vertical depth) on January 5, 2009. Nine and five- eighths surface casing was set to 4870 feet measured depth (3725 feet true vertical depth) and cemented. On January 9, 2009, operations were suspended because of a required rig move. 6. Originally planned as a near - vertical oil development well, Milne Point Unit S -39 has been re- designed as an extended - reach, horizontal oil development well that will be completed with a slotted liner to limit sand production. This well will test the productivity of the Milne Point Unit Ugnu Undefined Oil Pool as part of a multi -year pilot project. The AOGCC approved the revised well design and continued drilling operations in Permit to Drill No. 208 -183, which was re- issued on October 10, 2011. 7. The proposed well course was selected based on oil - column thickness and placement within the crest of a structural compartment of the reservoir. 8. As re- designed, Milne Point Unit S -39 will lie in the same governmental quarter sections as wells that are, or may be capable of, producing from the same pool (the Milne Point Unit Ugnu Undefined Oil Pool). CONCLUSIONS: 1. An exception to spacing requirements of 20 AAC 25.055(a)(3) is necessary to allow drilling and completion of the Milne Point Unit S -39 oil development well. 2. The Milne Point Unit S -39 extended - reach, horizontal production well is needed to demonstrate productivity of the Milne Point Unit Ugnu Undefined Oil Pool. 3. A spacing exception to allow drilling and completion of the Milne Point Unit S -39 well will not result in waste or jeopardize correlative rights of adjoining or nearby owners and operators. NOW, THERFORE, IT IS ORDERED: BPXA' application for exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the purpose of drilling and completion of the Milne Point Unit S -39 well is approved. BPXA may proceed with the drilling and completion of the Milne Point Unit S /39 s long as it is in compliance the terms of the leases and applicable Alaska Law. DONE at Anchorage, Alaska and dated January 18, 2012, A // ,'/ ID aniel T. Seamount, Jr. 0 , OIL q v,, pre rman Chair, Commissioner, Commissioner , t,;- �° 4 T JON CO Order 655 January 18, 2012 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t)he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Se le 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 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 �V ENO Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Wednesday, January 18, 2012 3:26 PM To: 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (DNR); 'CA Underwood'; 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Elizabeth Bluemink'; 'Eric Lidji'; 'Gary Orr; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lars Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; 'Wayne Wooster; 'Wendy Wollf; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWeIIIntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts; 'Brandon Gagnon'; ' Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'Chris Gay'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; Easton, John R (DNR); 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov)'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham 'Larry Ostrovsky'; 'Laura Silliphant (laura.gregersen @alaska.gov)'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester'; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Dammeyer'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; ' rob.g.dragnich @mconmobil.com; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tim Mayers'; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl'; 'Vicki Irwin; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); 'Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov)'; 'Colombie, Jody J (DOA) (jody.colombie @alaska.gov)'; 'Crisp, John H (DOA) (john.crisp @alaska.gov)'; 'Davies, Stephen F (DOA) (steve.davies @alaska.gov); 'Foerster, Catherine P (DOA) (cathy.foerster @alaska.gov)'; 'Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov)'; Herrera, Matt F (DOA); 'Johnson, Elaine M (DOA) (elaine.johnson @alaska.gov); 'Laasch, Linda K (DOA) (linda.laasch @alaska.gov)'; 'Maunder, Thomas E (DOA) (tom.maunder @alaska.gov)'; 'McIver, Bren (DOA) (bren.mciver @alaska.gov)'; 'McMains, Stephen E (DOA) (steve.mcmains @alaska.gov)'; Mumm, Joseph (DOA sponsored); 'Noble, Robert C (DOA) (bob.noble @alaska.gov)'; 'Norman, John K (DOA) (john.norman @alaska.gov)'; 'Okland, Howard D (DOA) (howard.okland @alaska.gov)'; 'Paladijczuk, Tracie L (DOA) ( tracie .paladijczuk @alaska.gov)'; 'Pasqua!, 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: co 655 Milne Point Attachments: co 655.pdf 1 3 N STATE OF ALASKA • NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED p O_02214007 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. October 6, 2011 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (9071 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 OIST 1111 1 12 02140100 73451 2 REQUISITIONED DIVISION APPROVAL: i i s '' Fiscal, n OZ 902 (Rev. 3/ PuNisher /Original Copies: Department kcal, Departme t, Receiving • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO- 11 -37. The application of BP Exploration (Alaska) Inc. for an exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete a development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. BP Exploration (Alaska) Inc., by a letter dated and received October 5, 2011, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete the Milne Point Unit S -39 development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. The proposed surface, top of productive interval, and bottomhole locations of the well are as follows: Milne Point Unit S -39 Surface Location: 3232' from the south line and 489' from the east line of Section 12, T12N, R11E, Umiat Meridian (U.M.) Top of Productive Interval Location: 2623' from the south line and 2271' from the east line of Section 7, T12N, R11E, U.M. Bottomhole Location: 2614' from the south line and 1276' from the east line of Section 7, T12N, R11E, U.M. The AOGCC has tentatively scheduled a public hearing on this application for November 17, 2011 at 2:00 p.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on November 1, 2011. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793 -1221 after November 3, 2011. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West r Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 16, 2011, except that, if a hearing is held, comments must be received no later than the conclusion of the November 17, 2011 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793 -1221, no later than November 14, 2011. Daniel T. Seamount, Jr. Chair, Commissioner ALASKA JournalfCommerce Alaska Oil & Gas Conservation Commission Public Notices FILE NO: AO- 02214007 Ad #: 10156039 AO- 02214007 Spacing Except AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ATTACII PROOF OF PUBLICATION HERE ALASKA, THIRD DISTRICT BEFORE ME, THE Notice of Public Hearing UNDERSIGNED, A NOTARY PUBLIC THIS 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 Commission THE Accounting Manager OF THE ALASKA Re: Docket # C0 11 - 37. The applica JOURNAL OF COMMERCE PUBLISHED AT 301 tion of BP Exploration (Alaska) Inc. for an exception to the spacing require - ARTIC SLOPE AVENUE, SUITE 350, IN SAID ments of 20 AAC 25.055(a)(3) to drill THIRD DISTRICT AND STATE OF ALASKA and complete a development oil well AND THAT ADVERTISEMENT, OF WHICH THE within the same governmental quarter section as wells that are, or may be ANNEXED IS A TRUE COPY, WHICH WAS capable of, producing from the same PUBLISHED IN SAID PUBLICATION pool. BP Exploration (Alaska) Inc., by a let- ter dated and received October 5, 10/16/2011 2011, requests the Alaska Oil and Gas 16th DAY OF OCTOBER 2011 Conservation Commission ( AOGCC) issue an order for an exception to the AND THERE AFTER FOR 1 spacing requirements of 20 AAC 25.055(a)(3) to drill and complete the CONSECUTIVE WEEK(S) AND THE Milne Point Unit S -39 development oil LAST PUBLICATION APPEARING ON well within the same governmental quarter section as wells that are, or 10/16/2011 may be capable of, producing from the 16th DAY OF OCTOBER 2011 same pool. The proposed surface, top of productive interval, and bottomhole locations the well are as follows: Milne Point Unit S -39 Surface Location: 3232' from the south line and 489' from the east line of Section 12, T12N, R11E, Umiat Tracy Allison Meridian (U.M.) Accounting Manager Top of Productive Interval Location: 2623' from the south line and 2271' SUBSCRIBED AND SWORN BEFORE ME from the east line of Section 7, T12N, THIS 17th DAY OF October 2011 R11E, U.M. Bottomhole Location: 2614' from the south line and 1276' from the east line • of Section 7, T12N, R11E, U.M. The AOGCC has tentatively scheduled S - 'R: I \'VW_ �.� a public hearing on application for NOTARY PUBLIC STATE OF ALASK • 1k November 17, 2011 at 2:00 p.m. at the MY COMMIS O I Alaska Oil and Gas Conservation " �� S N. '" S 4 � " ` Commission, at 333 West 7th Avenue, I ,,.. q ..� .)< �:,....: ` , ,; _lA'.�..((.r Suite 100, Anchorage, Alaska 99501. ( }tai e To request that the tentatively sched- • uled hearing be held, a written request 3 , i t••:;: y s . must be filed with the AOGCC no later kb� + + :' ^rCtti ?i ( -:xi lr - %r.: June 14, 2012' than 4:30 p.m. on November 1, 2011. $ If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hear- ing. To learn if the AOGCC will hold the hearing, call 793 -1221 after November 3, 2011. 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 November 16, 2011, except that, if a hearing is held, comments must be received no later than the conclusion of the November 17, 2011 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, con- tact the AOGCC's Special Assistant, Jody Colombie, at 793 -1221, no later than November 14, 2011. By: /s /Daniel T. Seamount, Jr. Chair, Commissioner Pub: 10/16/2011. Ad #10156039 • • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO- 02214007 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jodv Colombie October 6. 2011 ° Anchorage. AK 99501 PHONE PCN M (907) 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 r copy, was published in said the annexed is a true py, publication on the p p day of 2011, and thereafter for consecutive days, the last publication appearing on the day of , 2011, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2011, Notary public for state of My commission expires • 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. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 \0( J\Q\ • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Thursday, October 06, 2011 2:29 PM To: 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (PCO); 'CA Underwood'; 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Elizabeth Bluemink'; 'Eric Lidji'; 'Gary Orr'; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; Wayne Wooster'; 'Wendy Woilf; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWeiiintegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts'; 'Brandon Gagnon'; 'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock; 'Bruce Webb'; 'Chris Gay'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin; 'Dave Harbour'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber; 'ddonkel @cfl.rr.com; 'Dennis Steffy'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin; 'Gary Schultz (gary.schuitz @aiaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdariington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov)'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant (laura.gregersen @alaska.gov)'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester'; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Dammeyer; 'Michael Jacobs; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjneison'; 'mkm7200'; 'nelson'; 'Nick W. Glover'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @aiaska.gov)'; 'Paul Figel'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; 'rob.g.dragnich @exxonmobil.com; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk; 'Tamera Sheffield; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble; 'Thor Cutler'; 'Tim Mayers'; 'Tina Grovier'; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl ; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); 'Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov)'; 'Coiombie, 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) (eiaine.johnson @alaska.gov)'; 'Laasch, Linda K (DOA) (Iinda.laasch @alaska.gov)'; 'Maunder, Thomas E (DOA) (tom.maunder @alaska.gov)'; 'McIver, Bren (DOA) (bren.mciver @aiaska.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); 'Pasqua!, Maria (DOA) (maria.pasqual @alaska.gov)'; 'Regg, James B (DOA) (jim.regg @alaska.gov)'; 'Roby, David S (DOA) (dave.roby @aiaska.gov)'; 'Saltmarsh, Arthur C (DOA) (art.saitmarsh @alaska.gov)'; 'Scheve, Charles M (DOA) (chuck.scheve @alaska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov)'; 'Seamount, Dan T (DOA) (dan.seamount @alaska.gov)' Subject: MPU S -39 Spacing Exception Notice of Public Hearing Attachments: MPU S -39 Spacing Exception Notice of Public Hearing.pdf 1 I. 4* bp • REG EaNED BP Exploration (Alaska) Inc E �, PO Box 196612 October 5, 2011 Rg ° �q•A h 900 East Benson Boulevard OCT ti Anchorage, Alaska 99519 -6612 �a 00s` C'tii06OSSIOtI goslite Daniel P. Seamount, Commissioner Alaska Oil & Gas Conservation Commission 333 West 7 Avenue, Suite 100 Anchorage, AK 99501 RE: Request for Well Spacing Exception 20 AAC 25.055 — Milne Point Ugnu Well MPS -39, Heavy Oil Pilot Dear Commissioner Seamount: BP Exploration (Alaska) Inc. ( "BP ") hereby applies for an exception to the provisions of 20 AAC 25.055 (3) 'quarter section' clause for the drilling of MPS -39 (the 'Well ") and requests approval to drill the well for which the proposed location is: (1) Surface Location: 3232' FSL, 489' FEL, Section 12, Township 12N, Range 11E, Umiat Meridian (2) Ugnu M80 Location: 2623' FSL, 2271' FEL, Section 7, Township 12N, Range 11E, Umiat Meridian (3) Bottomhole Location: 2614' FSL, 1276' FEL, Section 7, Township 12N, Range 11E, Umiat Meridian A brief explanation for why the operator has chosen to drill the specified location. The well is part of a multi -year appraisal Pilot of Ugnu heavy oil reservoir at the Milne Point S- Pad. BP started drilling the well in 2009 however drilling was interrupted and circumstances required the rig to move. Originally the well was planned as a 'nearly' vertical producer with perforations through the casing. Recent success with offsetting Ugnu oil producing well, MPS -41, has resulted in a new plan for the well. The objective of the new plan is to test the productivity of Ugnu heavy oil in a horizontal well completed with a slotted liner while attempting to hold back sand production. The location was selected based on oil column thickness and location within the crest of the structural compartment (see Figures 1 and 2). The well has been permitted (pending approval of this application) and is scheduled to be drilled in October 2011. BP anticipates completing the well in November 2011 but not placing it on production until 2012. The names of all Owners, landowners, and operators of all properties within 1,000 feet of the well or portion of the well requiring the spacing exception that is drilled for oil or within 3,000 feet of a well or portion of a well that is drilled for gas. The owners, landowners and operators of all properties within 1,000 ft of the proposed bottom hole location of the oil well are 100% BP Exploration (Alaska) Inc. and BP America Production Company. Because these owners are part of the BP Group, no notice of this application has been mailed pursuant to the regulations. An affidavit by a person acquainted with the facts verifying that the facts are true and that the plat correctly portrays pertinent and required data. I am acquainted with the facts and can verify that the facts listed in this spacing exception request are true and that the enclosed plat correctly portrays pertinent and required data. Request for Well SpEwing Exception 20 AAC 25.055 — Milne Point Ugnu Well MPS -39, Heavy Oil Pilot October 5, 2011 Page 2 If you have any questions or require any additional information, please contact the undersigned at 564 -5476. Done at Anchorage, Alaska and dated October 5, 2011 Sincerely, William Mathews Heavy Oil Operations Team Lead BP Exploration (Alaska) Inc. Attachments: CHECKLIST — SPACING EXCEPTION APPLICATION PLAT SHOWING MPS -41A PLANNED LOCATION cc: Steve Davies, AOGCC Eric West, BP State of Alaska 3` District Subscribed and Sworn before me, a Notary Public, in and for the State of Alaska, on the 5` day of October 2011, William Mathews, personally appeared before me and signed the above. t . I, ' ' ' ‘ \■)%\\ ' N)S.\■\ - \ N " Donna Hicks J O .' ;I) f s4 Notary C '' ' r 4 • ; My Commission expires: 6/5/2012 AliA h , ,) Commission Number 110330 , ( V l'-• \' • • MPS -39 Area M8OT Depth Structure Map • • - 1 - - MPS -39 MPS-39 Straight 5 S.tCaingPt Horizontal Well Plan TD ( -6300' MD) 0 1000 2000 3000 Feet Figure 1 Structure Map showing Faults • • MPS -39 Schematic Cross - Section 1VDSS (Feet) 3 M PS -39 —3600 PS-3 1 it 95J Shoe 4456B u icieg • I zontal -37 Nadu sd "'rep z M8QL s ci IOW —3800 I i — .e $OU Sa' >1OOohm teas —3900 0 1000 2000 (Feet) Figure 2 Schematic Cross Section MPS -39 I b o HEAVY OIL PILOT WELL SPACING 0 1000 2000 Feet 4 1 li. 1 Z O. ?PU S MPS -39 MPS -39 Proposed Bottom Hole Twn 012N irri : v i2d Twn 012N Rn 0 10E Rng D11 E Rng 011E g Section 7 Section 8 Section 12 r . i MPS -37 , • rE. „)vi (., .fit r .:- ,,, MPS -39 Proposed Bottom Hole MPS-43 • MPS -41A MPS -39 Proposed Extension • Well Surface Location • Well Bottom Hole Location Well Deviation Survey M8OT Faults - Centerline Twn 012N Twn 012N Quarter Section Section 011E Rng 011E Section 18 I Section 17 Section Boundaries / 1 CHECKLIST — SPACING EXCEPTION APPLICATION OPERATOR BP PROPERTY ID/ LEASE ADL390110 FIELD /POOL MPU /Ugnu WELL NAME MPS -39 VERTICAL ❑ EXPLORATORY ❑ GAS ❑ DEVIATED ® DELINEATION ® OIL DEVELOPMENT ❑ SURFACE LOCATION 3232' FS L and 489' FE L, S12, T 12N, R 11E, Umiat M. PRODUCTIVE INTERVALS 2623' FS L and 2271' FE L, S7, T 12N, R 11E, Umiat M. (Top and Bottom) 2614' FS L and 1276' FE L, S7, T 12N, R 11E, Umiat M. BOTTOM HOLE 2614' FS L and 1276' FE L, S7, T 12N, R 11E, Umiat M. Check applicable reason(s) for spacing exception: ❑ (1) to drill a well for oil within 500 feet of a property line ❑ (2) to drill a well for gas within 1500 feet of a property line ►5 (3) to drill and complete more than one oil well in a governmental quarter section; or ❑ to drill and complete an oil well closer than 1000' to any well drilling to or capable of producing from the same pool ❑ (4) to drill and complete more than one gas well in a governmental section; or ❑ or to drill and complete a gas well closer than 3000' to any well drilling to or capable of producing from the same pool Does the application contain: X A brief explanation for why the operator has chosen to drill the specified location. A plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well or portion of the well for which the exception is sought, all other completed and drilling wells on the X property, and all adjoining properties and wells within 1,000 feet of a well or portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. The names of all owners, landowners, and operators of all properties within 1,000 feet of a well or X portion of the well requiring the spacing exception that is drilling for oil or within 3,000 feet of a well or portion of the well requiring the spacing exception that is drilling for gas. A copy of the notice sent by certified mail to the owners, landowners and operators described above, the date of mailing, and the addresses to which the notice was sent. X An affidavit by a person acquainted with the facts verifying that all facts are true and that the plat correctly portrays pertinent and required data. If the operator requests a variance from the notice requirements of 20AAC25.055(d), sufficient information to demonstrate that it is not feasible to comply with the notice requirements because of the complexity of ownership within the notice area.