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Home My WebLink AboutCO 666 • 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 IP ( a Order File Identifier Organizing (done) ❑ Two -sided I 1111 ❑ Rescan Needed 1 I1111111 III III RES AN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: p BY: Maria Date: a /s/ Project Proofing I 111111111 IIIII BY: Maria Date: I a ai ' a /s/ Mr Scanning Preparation x 30 = = TOTAL PAGES a BY Date: l a ^ ^ (Count does not include cover sheet) f3 �� r � /s/ Production Scanning 11111111110 11111 Stage 1 Page Count from Scanned File: a a (Count does include cover sheet) Page Count Matches Number in Scannin Preparation: V<I'ES NO BY: ` Date: / t )-, D.3 1 /s/ oi p Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. III I I 11 111 ReScanned 1 I 11111 BY: Maria Date: /s/ Comments about this file: Quality Checked III ( 1/17/2012 Orders File Cover Page.doc • Conservation Order No. 666 Deep Creek Unit No. B -15 • Development Gas Well Deep Creek undefined Gas Pool Deep Creek Unit Kenai Peninsula Borough, Alaska 1. August 13, 2012 Hilcorp Application for Spacing Exception for Well B -15 2. September 16, 2012 Notice of Hearing, Affidavit of Publication, Email Distribution List, Mailing List Conservation Order No. 666 II • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, ) Docket Number: CO -12 -20 LLC for an exception to the spacing ) Conservation Order No. 666 requirements of 20 AAC 25.055(a)(4) to ) drill and complete a development gas well ) Deep Creek Unit No. B -15 within the same governmental section and ) Development Gas Well within 3,000 feet of a well that is, or may ) Deep Creek Undefined Gas Pool be capable of, producing from the same ) Deep Creek Unit pool. ) Kenai Peninsula Borough, Alaska ) ) December 10, 2012 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 10th day of December, 2012. BY DIRECTION OF THE COMMISSION \ ii ri Y VV V I L Jod J. Colombie Sp, cial Assistant to the Commission 1 • 1 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, ) Docket Number: CO -12 -20 LLC for an exception to the spacing ) Conservation Order No. 666 requirements of 20 AAC 25.055(a)(4) to ) drill and complete a development gas well ) Deep Creek Unit No. B -15 within the same governmental section and ) Development Gas Well within 3,000 feet of a well that is, or may ) Deep Creek Undefined Gas Pool be capable of, producing from the same ) Deep Creek Unit pool. ) Kenai Peninsula Borough, Alaska ) December 10, 2012 IT APPEARING THAT: 1. By letter received August 14, 2012, Hilcorp Alaska, LLC (Hilcorp) requested an exception to the spacing provisions of 20 AAC 25.055(a)(4) to allow drilling and completion of the planned Deep Creek Unit No. B -15 (DCU B -15) development gas well within the same governmental section and within 3,000 feet of a well that is, or may be capable of, producing from the same pool. 2. On August 13, 2012, by certified mail, Hilcorp sent notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the planned DCU B -15 well. Hilcorp provided the AOGCC the notice, date of mailing, addresses to which the notice was sent, and proof of certified mailing. 3. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for October 23, 2012. On September 7, 2012, the AOGCC mailed printed copies of the notice of the opportunity for public hearing to all persons on the AOGCC's mailing distribution list, published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC' s website, and electronically transmitted the notice to all persons on the AOGCC's email distribution list. On September 16, 2012, the notice was published in the ALASKA JOURNAL OF COMMERCE. 4. No protest to the application or request for hearing was received. 5. The tentatively scheduled public hearing was vacated on October 17, 2012. 6. Because Hilcorp provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. Order 666 . S December 10, 2012 Page 2 of 3 FINDINGS: 1. Hilcorp is the operator of the Deep Creek Unit and the planned DCU B -15 development gas well, which are located in the Kenai Peninsula Borough, Alaska. 2. DCU B -15 will be an onshore, deviated development gas well with a surface location 2,328' from the south line and 336' from the east line of Section 21, TO2S, R13W, .M.. The estimated top of the productive interval is 1 Seward Meridian (S ) p p 1,319' from the south line and 687' from the east line of Section 21, TO2S, R13W, S.M. The projected bottom -hole location is 842' from the north line and 853' from the east line of Section 21, TO2S, R13W, S.M. 3. DCU B -15 will be located within Cook Inlet Region, Inc. (CIRI) lease C- 061589. 4. Other potentially affected owners, landowners, and operators —those within a 3,000 -foot radius of the well —are the State of Alaska and CIRI. Hilcorp sent notice of its application to these entities by certified mail on August 13, 2012. 5. Development gas well DCU B -14 currently produces within 3,000 feet of, and within the same governmental section as, planned well DCU B -15. 6. The reservoir sands accessed by DCU B -15 are discontinuous fluvial sands. 7. The AOGCC received no comments, objections or protests in response to the public notice regarding DCU B -15 or to the notification sent by Hilcorp to all known owners, landowners and operators within 3,000 feet of DCU B -15. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the DCU B -15 development well in gas reservoirs in order to maximize recovery of reserves. 2. DCU B -15 will recover reserves that are not accessible to other existing wells. 3. A spacing exception to allow drilling and completion of DCU B -15 is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. 4. An exception to the requirements of 20 AAC 25.055(a)(4) will not promote waste or jeopardize correlative rights. Order 666 • . December 10, 2012 Page 3 of 3 NOW THEREFORE IT IS ORDERED: Hilcorp's August 13, 2012 application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling and completion of the DCU B -15 development gas well is hereby approved. Hilcorp may proceed with regular production as long as it complies with the terms of the Deep Creek Unit Agreement, applicable Alaska laws, and all other legal requirements. _ OIL .4'vo DONE at Anchorage, Alaska and dated December 10, 20 f; • , ‘bt, Daniel T. Seamount, Jr. elf I .. orm • Commissioner Commissioner R 'ION • 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. Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, December 11, 2012 10:23 AM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Bender, Makana K (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Wallace, Chris D (DOA); (michael.j.nelson @conocophillips.com); Abbie Jossie; AKDCWelllntegrityCoordinator; alaska @petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Bruce Webb; caunderwood @marathonoil.com; Claire Caldes; Cliff Posey; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David House; Scott, David (LAA); David Steingreaber; Davide Simeone; ddonkel @cfl.rr.com; Dudley Platt; Elowe, Kristin; Francis S. Sommer; Gary Laughlin; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jdarlington (jarlington @gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Lastufka; news @radiokenai.com; Easton, John R (DNR); John Garing; John Spain; Jon Goltz; Jones, Jeffrey L (GOV); Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Luke Keller; Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; Mike Bill; mike @kbbi.org; Mike Morgan; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; knelson @petroleumnews.com; Nick W. Glover; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Randall Kanady; Randy L. Skillern; Randy Redmond; Delbridge, Rena E (LAA); Renan Yanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Taylor, Cammy 0 (DNR); Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen @ak.net; Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Dale Hoffman; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham 0 (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers; Jason Bergerson; Jennifer Starck; jill .a.mcleod @conocophillips.com; Joe Longo; King, Kathleen J (DNR); Lara Coates; Lois Epstein; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Pexton, Scott R (DNR); Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke Subject: CO 666 (Spacing Exception B15 - Hilcorp) Attachments: co666.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 Easy Peel® Labels i 4, Bend along line to 1 CA AVERY® 5960Tm Use Avery® Template 5160® Feed Paper expose Pop -up EdgeTM J 1 David W. Duffy, Landman '�� J ` _ Hilcorp Alaska, LLC Y Post Office Box 244027 Anchorage, AK 99524 -4027 \ \\ , 2 4 ►� . Etiquettes faciles a peter ; Repliez a la hachure afin del www.avery.com ...L.___ 1_ _.. L_...:+. A•envito eer_n® 1 Sens de , „ , - Ku- I 1 _stnn_rn_ AVF Qv 1 i Easy Peel® Labels i ® Bend along line to ' A VERV® 5 960TM ; Use Avery® Template 5160® 1 eed Paper expose Pop -up Edge"' A 0 L Mary Jones David McCaleb XTO Energy, Inc. !HS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston St., Ste. 200 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Hatiiburton 408 w President 6900 Arctic Blvd. Golds SO P.O. Box 1655 Golden, CO 80401 -2433 Colorado Springs, CO 80901 Anchorage, AK 99502 Bernie Karl CIRI K &K Recycling Inc. Baker Oil Tools 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 Planning Department Richard Wagner Gordon Severson P.O. Box 69 P.O. Box 60868 3201 Westmar Cir. Barrow, AK 99723 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669 -7714 N CI & Etiquettes taciles a peter R epliez i3 la hachure afin de 1 Www.ave COm 1 Sens de MC 1 s- unnazn -nvF ._ . .__... wpm n*Ir�l rn Gn� +2 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED p O_oL I�_a7 Q_14 -014 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF M ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ..cE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. September 6, 2012 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 CO 12 -20 i SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 TOTAL OF PAGE 1 OF ALL PAGES$ TO . Anchorage, AK 99501 2 PAGES REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 12 02140100 73451 2 REQUISITIONED Y: \ DIVISION APPROVAL: \ O 02 - 902 (Rev. 3/94) Pub isher /Original opies: Department Fiscal, Department, Receiving AO.FRM . • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO- 12 -20. The application of Hilcorp Alaska, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(4) that provide that not more than one gas well may be drilled to and completed in the same pool on any governmental section; and that a gas well may not be drilled or completed closer than 3000 feet to any well capable of producing from the same pool. Hilcorp Alaska, LLC, by a letter received August 14, 2012, 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)(4) to drill and complete the Deep Creek Unit No. B -15 development gas well within the same governmental section and within 3,000 feet of wells that are, or may be capable of, producing from the same pool. Deep Creek Unit No. B -15 Surface Location: 2328' from the south line and 336' from the east line of Section 21, TO2S, R13W, Seward Meridian (S.M.) Top of Productive Interval (estimated): 1319' from the south line and 687' from the east line of Section 21, TO2S, R13W, S.M. Bottom -Hole Location (estimated): 842' from the north line and 853' from the east line of Section 21, TO2S, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for October 23, 2012 at 9:00 a.m. 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 October 1, 2012. 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 October4, 2012. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7 Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on October 19, 2012, except that, if a hearing is held, comments must be received no later than the conclusion of the October 23, 2012 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 October 19, 2012. (4( J O Cat Foerster 14. Foe Chair, Commissioner STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED w O�o11��_1 4_014 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A G ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTAIY FOR1NVOICE DDRES3 F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jody Colomhie Sentemher 6.2012 ° Anchorage_ AK 99501 PHONE PCN M (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: T Alaska Journal of Commerce ASAP 0 301 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 Alaska ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. Third Judicial District 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 AT MERE. Notice of Public Hearing Tracy Allison who, being first duly swom, according to law, says that he /she is STATE OF ALASKA Alaska Oil and Gas Conservation the Circulation Manager of The Alaska Joumal of Commerce Commission Published at Anchorage in said division Third Judicial District and state of Re: Docket # CO 12 - 20. The applica- tion of Hilcorp Alaska, LLC for an ex Alaska and that the advertisement, of which the annexed is a true copy, was cep to the rt of 20 0 AAC 25.055(a)(4) thh at t provide that not more than one gas well may published in said publication on the Sixteenth day of September 2012, and be drilled to and completed in the same pool on any governmental sec - thereafter for consecutive days, the last publication appearing on the drilled and that a gas well may not be Y P PPS 9 drilled or completed closer than 3000 feet to any well capable of producing Sixteenth day of _September 2012, and that the rate charged thereon is not in from the same pool. Hilcorp Alaska, LLC, by a letter re- ceived excess of the rat charged private individuals. Alaska August and 2012, 2, Conservation requests the g Pri Alaska Oii and Gas Consery ,� \-----L_ Commission issue an order for an exception tion to to the the spacing re- quirements of 20 AAC 25.055(a)(4) to Subscribed and sworn to before me drill and complete the Deep Creek Unit No. B -15 development gas well within the same governmental section This 17th day of September 201 2, and within 3,000 feet of wells that are, �1 a r 1� or may be capable of, producing from H l L the same pool. Notary public for state of Deep Creek Unit No. B - 15 Commission expires iM _ _ _ _ Surface Location: 2328' from the M y p J south line and 336' from the east line I Notary Public I of Section 21, TO2S, R13W, Seward BELINDA CUMMINGS I Meridian (S.M.) State of Alaska I Top of Productive Interval (esti- mated): 1319' from the south line and My Commission Expires Jun 14, 2016 I 687' from the east line of Section 21, a A_r. ■ .- IN, .� 40.. �.∎. AO. R13W, S.M. _ • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� O -02 -3- 14_014 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /1 L 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 Sentemher 6. 2012 ° 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: 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 2012, and thereafter for consecutive days, the last publication appearing on the day of , 2012, 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 2012, Notary public for state of My commission expires 110 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, September 07, 2012 10:35 AM To: Ballantine, Tab A (LAW); 'Brooks, Phoebe'; Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); 'Makana Bender; McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); 'Wallace, Chris (DOA sponsored)'; 'Aaron Gluzman'; 'Aaron Sorrell'; 'Bruce Williams'; Bruno, Jeff J (DNR); 'CA Underwood'; 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Eric Lidji'; 'Erik Opstad'; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; 'Greg Mattson'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jennifer Starck'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lars Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Matt Gill'; 'Maurizio Grandi'; OilGas, Division (DNR sponsored); 'Patricia Bettis'; Perrin, Don J (DNR); 'Peter Contreras'; Pexton, Scott R (DNR); 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Wayne Wooster; 'Wendy Wollf; 'William Hutto'; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Bruce Webb'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David Duffy'; 'David House'; 'David Scott'; 'David Steingreaber; 'Davide Simeone'; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; 'Elowe, Kristin'; 'Erika Denman'; 'Francis S. Sommer; '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 Lastufka'; 'Joe Nicks'; 'John Easton'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Julie Little'; ri rt 'Kaynell Zeman'; 'Keith Wiles'; 'Kell Sperback'; Mo a y, y 'Kelly 'Laura Silliphant p (laura.gregersen @alaska.gov)'; 'Luke Keller'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester; 'Marguerite kremer (meg.kremer @alaska.gov)'; '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'; 'Paul Mazzolini'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; 'Robert Brelsford'; 'Robert Campbell'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Seth Holtshouser; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Stephanie Klemmer; 'Steve Moothart (steve.moothart @alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; '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'; Williamson, Mary J (DNR); 'Yereth Rosen' Subject: Public Notice Deep Creek B -15 Attachments: Public Notice Deep Creek B- 15.pdf Jody 1. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue 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 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 1 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669 -7714 /f 2/d ? 'IZ 41 I� 410 • Post Office Box 244027 Anchorage, AK 99524 -4027 Hilco Alaska, LLC 3800 Centerpoint Drive p Suite 100 Anchorage, AK 99503 Phone: 907 /777 -8300 August 13, 2012 Fax: 907/777-8301 Mr. Daniel Seamount Alaska Oil and Gas Conservation Commission R ECEIVED 333 West 7 Avenue, Suite 100 Anchorage, Alaska 99501 AUG 1 4 2012 RE: Deep Creek Unit Spacing Exception: Well B -15 AOGCC Dear Commissioner, Hilcorp Alaska, LLC ( "HAK'), as Operator of the Deep Creek Unit ( "DCU "), hereby applies for an exception to 20 AAC 25.055(a)(4) for the drilling of DCU B -15. In accordance with 20 AAC 25.005(a), a Permit to Drill is also filed herewith. Our anticipated spud date is Sept 20 2012. Specific location and depth information for B -15 is depicted on attached Exhibit A, and is further summarized below: Surface Location: • CIRI Lease C- 061589 • 2,328' FSL, 336' FEL, 5.21, T.002S, R.13W, SM. Top of Producing Interval: • CIRI Lease C- 061589; DCU Tract 4 • 1,319' FSL, 687' FEL, S.21, T.002S, R.13W, SM. Projected Bottom Hole Location: • CIRI Lease C- 061589; DCU Tract 4 • 842' FNL, 853' FEL, 5.21, T.002S, R.13W, SM. Pursuant to 20 AAC 25.055(a)(4), a spacing exception is required because the proposed location of well B -15 is located within the same governmental section and within 3,000' feet of one well (B -14), which is capable of producing in the same interval. See Exhibit A (attached). The correlative rights of all affected owners, landowners and Hilcorp Alaska, LLC (as operator) will be protected by approval of the requested spacing exception. The surface and bottom hole location of both the proposed well (B -15) and the existing well (B -14) are located on CIRI Lease C- 061589 (DCU Tract 4). Further, CIRI is the 100 percent mineral owner and HAK is the 100 percent working interest owner of both wells. This spacing exception is also necessary to efficiently drain the formation. Based on seismic and subsurface data available to HAK, this shallow, low pressure formation is susceptible to water drive. B -15's deviated well path targets production high on the Sterling formation (crestal withdraw) at the furthest practical distance (approximately 1,000') from vertical well B -14. At the date of this mailing, in accordance with 20 AAC 25.005(d)(1), notice of our intent to drill has been sent by certified mail to all owners, landowners, and operators of all properties within 3,000' of B -15. A copy of this application was sent by certified mail and a certified mailing receipt has been attached to this is application. Pursuant to 20 AAC 25.055(d)(2), enclosed is a plat, identified as Exhibit A, which shows the location of the well for which the exception is sought and all adjoining properties. Pursuant to 20 AAC 25.055(d)(3), an affidavit is enclosed stating the undersigned is acquainted with the fact and verifying that all facts asserted herein are true. If you require additional information regarding the B -15 well, please contact Mr. Luke Keller, Drilling Engineer, at 777 -8395, or you may contact the undersigned at 777 -8414. Sincerely, David W. Duffy Hilcorp Alaska, LLC Enclosures CC: Ethan Schutt, CIRI Patricia Bettis, DNR VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALAKSA DEEP CREEK UNIT, TRACT 4 CIRI LEASE C -61589 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with the application submitted for the drilling of the B -15 well in the Deep Creek Unit I have reviewed the application submitted for the exception to 20 AAC 20.0559(a)(4) and that all the facts therein are true. I have reviewed the plat attached to said application and it correctly portrays the pertinent and required data. li DATED at Anchorage, Alaska this 13 day of August, 2012. David W. Duffy, Landman Hilcorp Alaska, LLC STATE OF ALAKSA ) ss THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 13 day of August, 2012 STATE OF ALASKA , / et,„,h-_- NOTARY PUBLIC Zelma M. Clarke NI/ ARY PUBLIC IN AND FOR My Commission Expires Nov 10, 2012 T E STATE OF ALSKA My Commission expires: //// v /)-d /)— M N S002S013W C061588 S002S013W Sec. 16 Sec. 15 Tra t: 3 ADL 84380 Trac , • 2 ,_ Sn1 3W ? 4 c. 21 . C061589 B -14 S002SW . e `" 'X) . Sec!!! �..'" IB -15 l' « Tract: 4 ` ' • v; \ ; I i I rs - 1 4B i Tract: 5 -15 BHL • C061590 N'---,.. Spacing Exception Exhibit A Surface Hole Location • Bottom Hole Location S002S013W X Top of Production Horizon Sec. 28 ( 1 3000 ft Radius From Well — — — , Well Path Mill Tracts I ! r---, Well Pad B 0 1,000 2,000 N Deep Creek Unit Feet T ract 4 Well B-I 5 Alaska State Plane Zone 4, NAD27 A August 10, 2012 Hilcorp Alaska, LLC Davies, Stephen F (DOA) From: David Duffy - (C) [dduffy @hilcorp.com] Sent: Tuesday, November 06, 2012 11:15 AM To: Davies, Stephen F (DOA) Subject: RE: B -15 Spacing Exception Attachments: Document (15).pdf Please see attached. If I remember correctly, the first mailing to CIRI bounced back and was re -sent. From: Davies, Stephen F (DOA) [mailto:steve.davies@ alaska.gov] Sent: Monday, November 05, 2012 9:57 AM To: David Duffy - (C) Subject: B -15 Spacing Exception David, Question for you: The application for the B -15 spacing exception says that the certified mailing receipt was attached to the application, but it's not attached now. Could you please provide a copy to the AOGCC to complete the record? Thanks, Steve Davies AOGCC 907 - 793 -1224 1 SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY • Complete items 1, 2, and 3. Also complete Sim' re item 4 if Restricted Delivery is desired. ❑ • Print your name and address on the reverse X " l - 1' ( ,s Addliteo so that we can return the card to you .. 8. Received by ft Name) C of Deii II Attach this card to the back at the maiIpiece, ) p , , 7 . s or on the front if space permits. __, �, //'r / r f /I t D. Is delivery address different fro e n 1? awes/ t. Article Addressed to if YES, enter delivery address w: 01 Z-S 1 a h` 4 s t i e sad [ "r� % 3. Service Type ! G " K ! !c c ) '('} ❑ Certified Mail ❑ Express Mail ❑ Registered ❑ Return Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number (Transfer from service label) 7 012 1010 0001 97 5 4 1131 PS Form 3811, February 2004 Domestic Return Receipt 1a2595- 02 %i -154O