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Home My WebLink AboutCO 668 • • 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 inspe ction of the file. C- 0 (10 g Order File Identifier Organizing (done) ❑ Two -sided 1 11111111 1111 ❑ Rescan Needed I [1111 II 1111 RE 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:: BY: Maria) Date: a- 3 /s/ M 1 Project Proofing I 1 111111 11111 BY: Date: a- 1 1 3 /s/ u 13 Scanning Preparation x 30 = + = TOTAL PAGES of (Count does not include cover sheet) ryi BY Maria Date: all 4. t3 /s/ Production Scanning 1 111111111111 Stage 1 Page Count from Scanned File: a ( 3 ) (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Date: iI 1 4 / / .3' /s/ (y1 F I 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. AIM I IIII ReScanned 11311111111111 BY: Maria Date: /s/ Comments about this file: Quality Checked I 'IIIIIIIIII III 1/17/2012 Orders File Cover Page.doc • • INDEX CONSERVATION ORDER NO. 668 Redoubt Unit No. 2A Development Oil Well Redoubt Shoal Undefined Oil Pool Redoubt Unit Kenai Peninsula, Borough, Alaska 1. November 26, 2012 Cook Inlet Energy, LLC's Application for Spacing Exception for Redoubt Shoals Sidetrack of RU -2 (RU -2A) Exhibit B held in Confidential Storage 2. December 15, 2012 Notice of Public Hearing, Affidavit of Publication, Email Distribution List, Operator and Bulk Mailing Lists INDEX CONSERVATION ORDER NO. 668 • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet ) Docket Number: CO -12 -38 Energy, LLC for an exception to the spacing ) Conservation Order No. 668 requirements of 20 AAC 25.055(a)(3) to drill ) and complete a development oil well within the ) Redoubt Unit No. 2A same governmental quarter section as wells ) Development Oil Well that are, or may be capable of, producing from ,) Redoubt Shoal Undefined Oil Pool the same pool ) Redoubt Un ) Kenai Peninsula Borough, Alaska ) January 23, 2013 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 23" day of January, 2013. BY DIRECTION OF THE COMMISSION Cla Jodi . Colombie Sp; ci:1 Assistant to the Commission • I STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet ) Docket Number: CO -12 -38 Energy, LLC for an exception to the spacing ) Conservation Order No. 668 requirements of 20 AAC 25.055(a)(3) to drill ) and complete a development oil well within the ) Redoubt Unit No. 2A same governmental quarter section as wells ) Development Oil Well that are, or may be capable of, producing from ) Redoubt Shoal Undefined Oil Pool the same pool )) Redoubt Unit Kenai Peninsula Borough, Alaska ) January 23, 2013 IT APPEARING THAT: 1. By letter received December 3, 2012, Cook Inlet Energy, LLC (CIE) 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 Redoubt Unit No. 2A (Redoubt Unit 2A) development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. 2. On November 29, 2012, by certified mail, CIE sent notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the planned Redoubt Unit 2A well. CIE 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 January 17, 2013. On December 14, 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 December 15, 2012, the notice was published in the ANCHORAGE DAILY NEWS. 4. No protest to the application or request for hearing was received. 5. The tentatively scheduled public hearing was vacated on January 9, 2013. 6. Because CIE provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. Order 668 • January 23, 2013 Page 2 of 3 FINDINGS: 1. CIE is the operator of the Redoubt Unit and the planned Redoubt Unit 2A development oil well, which are located in the Kenai Peninsula Borough, Alaska. 2. Redoubt Unit 2A will be an offshore, deviated development oil well with a surface location 1,918' from the south line and 320' from the east line of Section 14, TO7N, R14W, Seward Meridian (S.M.). The estimated top of the productive interval is 2,306' from the north line and 755' from the west line of Section 19, TO7N, R13W, S.M. The projected bottom hole location is 2,475' from the south line and 1,505' from the west line of Section 19, TO7N, R13W, S.M. 3. Redoubt Unit 2A will be located within State of Alaska leases ADL- 381203 and ADL- 374002. 4. Other potentially affected owners, landowners, and operators —those within a 3,000 -foot radius of the well —are the State of Alaska, Department of Natural Resources. CIE sent notice of its application to these entities by certified mail on November 29, 2012. 5. Development oil wells Redoubt Unit No. 1 and Redoubt Unit No. 7 currently produce within the same governmental quarter section as the planned well Redoubt Unit 2A. 6. Redoubt Unit 2A will access oil reserves at a structurally advantageous location that is fault- separated from wells Redoubt Unit No. 1 and Redoubt Unit No. 7. 7. The AOGCC received no comments, objections, or protests in response to the public notice regarding Redoubt Unit 2A or to the notification sent by CIE to all known owners, landowners, and operators within 3,000 feet of Redoubt Unit 2A. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow drilling and completion of the Redoubt Unit 2A development well in oil reservoirs in order to maximize recovery of reserves. 2. Redoubt Unit 2A will recover reserves that are not accessible to other existing wells. 3. A spacing exception to allow drilling and completion of Redoubt Unit 2A 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)(3) will not promote waste or jeopardize correlative rights. Order 668 • S January 23, 2013 Page 3 of 3 NOW THEREFORE IT IS ORDERED: CIE's December 3, 2012 application for an order granting exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling and completion of the Redoubt Unit 2A development oil well are hereby approved. CIE may proceed with regular production as long as it complies with the terms of the Redoubt Unit Agreement, applicable Alaska laws, and all other legal requirements. DONE at Anchorage, Alaska and dated January 23, 2012. „ Cathy P. Foe ster J i7F KNIT. an Chair, ommissioner ommissioner `4 7 .CON C 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), "[tlhe 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: Wednesday, January 23, 2013 3:45 PM 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; Brian Havelock; Bruce Webb; caunderwood @marathonoil.com; Cliff Posey; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour; Dave Matthews; David Boelens; David Duffy; David House; David Scott; David Steingreaber; Davide Simeone; ddonkel @cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Evans, John R (LDZX); 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); Juanita Lovett; 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; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Vanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Cranswick; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Stephen Miller; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield @aoga.org; Taylor, Cammy 0 (DNR); Ted Kramer; 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; Jim Magill; Joe Longo; King, Kathleen J (DNR); Lara Coates; Lois Epstein; Louisiana Cutler; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Ostrovsky, Larry (DNR sponsored); Bettis, Patricia K (DOA); Perrin, Don 1 (DNR); Peter Contreras; Pexton, Scott R (DNR); Pollard, Susan R (LAW); Pollet, Jolie; Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Wayne Wooster; Woolf, Wendy C (DNR); William Hutto; William Van Dyke Subject: CO 668 Spacing Redoubt 2A (Cook Inlet Energy) Attachments: co668.pdf 1 • • Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 W 7th Avenue Anchorage, Alaska 99501 (907) 793 -1221 (907) 276 -7542 2 Easy Peel® Labels i ♦ ® Bend along line to ® RY® 5960TM Use Avery® Template 5160® eed Paper expose Pop -up EdgeTM • L. David Hall CEO Cook Inlet Energy 601 W. 5 Ave., Ste. 310 Anchorage, AK 99501 CS\ Etiquettes faciles a peler 1 • Repliez a la hachure afin del www.avery.com I Itilicc7 Ic naharit A\/FRV® S1 Fn® ! . Sens de __ .a..ai . i ..+ e• .. - •• »arc ! 1- R00 -GA -AVERY Easy Peel® Labels i ® Bend along line to AVERY® 5960T'" Use Avery® Template 5160® 2 S eed Paper -�'"— expose Pop -up EdgeTM I • / David McCaleb Penny Vadla IHS Energy Group George Vaught, Jr. 399 W. Riverview Ave. GEPS Post Office Box 13557 Soldotna, AK 99669 -7714 5333 Westheimer, Ste. 100 Denver, CO 80201 -3557 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton 18th President 40818 St. 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 94th Post Office Box 58055 Post Office Box 93330 795 E. 94 Ct. Fairbanks, AK 99711 Anchorage, AK 99503 Anchorage, AK 99515 -4295 North Slope Borough Planning Department Richard Wagner Gordon Severson Post Office Box 69 Post Office Box 60868 3201 Westmar Cir. Barrow, AK 99723 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Jack Hakkila Darwin Waldsmith James Gibbs Post Office Box 190083 Post Office Box 39309 Post Office Box 1597 Anchorage, AK 99519 Ninilchik, AK 99639 Soldotna, AK 99669 \ ( \ k _._ . ■ L S _ , Etiquettes faciles a peter ' Repliez a la hachure afin de ; www.avery.com ; I I+ilico, la naharit D \ /FRV® S1C.(1® I Sens de ./....41.... I _ . _ I. __� „__ ....MC ! 1- aria -1 0.AVFRV ! 2 STATE OF ALASKA • NOTICE TO PUBLISHER 0 ADVERTISING ORDER NO. ADVERTISING A FIIDIAVITM UOSFT PUB (PART 2 OF S OR ) I W TH ATTAC ED COPY I OF AO- 02- 3- 14-027 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS, ° F AOGCC AGENCY CONTACT DATE OF A.O. December 14, 2012 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News December 15, 2012 PO Box 149001 Anchorage, AK 99514 ITS ENTIRETY ON THE BETWE S SHOWN. DOUBLE LINES MUST BE PRINTED IN SPECIAL INSTRUCTIONS: Type of Advertisement LegaIN ❑ Display Classified ❑Other (Specify) SEE ATTACHED Redoubt CO 12 -38 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 13 02140 73451 2 1 REQUISITIp : DIVISION APPROVAL: . : 0 4/ I 02 - 902 (Rev. / 4) Publisher /Original Copies: Department Fiscal, Department, Receiving AO.FRM • • Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket # CO- 12 -38. The application of Cook Inlet Energy, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(3) that provide that not more than one oil well may be drilled to and completed in the same pool on any governmental quarter section. Cook Inlet Energy, LLC, by a letter received December 3, 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)(3) to drill and complete the Redoubt Unit No. 2A development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. Redoubt Unit No. 2A Surface Location: 1,918' from the south line and 320' from the east line of Section 14, TO7N, R14W, Seward Meridian (S.M.) Bottom -Hole Location (estimated): 2,750' from the north line and 2,500' from the west line of Section 19, TO7N, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 17, 2013 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 January 2, 2013. 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 January 5, 2013. 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 January 16, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the January 17, 2013 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 January 15, 2013. Daniel T. Seamount, Jr. Commissioner I. STOF0330 #176813 ' ° f' $212.48 AFFIDAVIT OF PUBT,ICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin ---- being - being first duly sworn on oath , Notice of Public Hearing deposes and says that he /she is - STATE *ALASKA a representative of the : Alaska Oil and Gas Conservation Commission Anchorage Daily News, a ; Re: Docket # CO- 12 -38. The application of Cook y Inlet Energy, LLC tor an exception to the spacing daily That said , requirements of 20 AAC 25.055(a)(3) that provide y news a er. p p that not more than one oil well may be drilled to and newspaper has been approved completed in the same.pool on any governmental PP quarter section. by the Third Judicial Court, Cook inlet Energy, ,LLC, by a letter received Anchorage, Alaska, and it now December 3, 2012, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order and has been published in the . for an. exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete the Redoubt English language continually as a unit No. 2A development oil well within the same governmental quarter section as wells that are, or daily newspaper in Anchorage, may be capable of, producing from the same pool. Alaska, and it is now and during Redoubtunit No. 2A - . Surface Location: 1,918' from the south line and 320' all said time was printed in an from the east line of Section 14, TO7N, R14W, office maintained at the aforesaid Seward Meridian (S.M.) Bottom -Hole Location (estimated): 2,750' from the place of publication of said north line and 2,500' from the west line of Section newspaper. That the annexed is 19, TO7N, R13W, s.M. a copy of an advertisement as it The AOGCC has tentatively` scheduled a public py hearing on this application for January 17, 2013 at was blished in regular issues 9:00 a.m. at 333 West 7th Avenue, Suite 100, P o Anchorage, Alaska 99501. To request that the (and not in supplemental form) tentatively scheduled hearing beheld, a written. request must be filed with the AOGCC no later than of said newspaper on 4:30 p.m. on January 2, 2013. 7 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 January 5, 2013. December 15, 2012 In addition, written comments--regarding this application may be submitted to the Alaska Oil and Gas Conservation- Commission, a 333 West 7th ' Avenue, Suite 100, Anchorage; Alaska 99501, Comments must be received` no later than 4:30 p.m. and that such newspaper was on January 16, 2013, except that, if a hearing is held, comments must be received no later than the regularly distributed to its, conclusion of the January 17, 2013 hearing.. subscribers during all of said If, because of a disability, special accommodations . period. That the full amount of neded to comment or Special t Assistant, Jody the fee charged for the foregoing Colombie, at 793 -1221, no later than January 15, 2013. publication is not in excess of . Daniel T. Seamount, Jr. the rate charged private individuals. commissioner i 1_ AO- 02 -3 -14 -027 � f 1 ° �' t • � i��` i ° Published: December 15, 2012 Signed/ A .� ,, , � A k Subscribed and sworn to before for me this I day of t �G' 01111110010 20 d'� ,( �; � p7TNEY G' Notary Public in and folk. ark . The State of Alaska. m...ti j � r' f ro � 2 Third Division '��''' r ' C. ,� �.•' MY COMMISS Alaska P �A$' P �� ` I 17.3 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O -02 -s- 14-027 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /`1 2 1 G ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS;,,4„. F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jodv Colorable December 14. 2012 ° Anchorage_ AK 99501 PHONE PCN M (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News December 15, 2012 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 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 swom, 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 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, December 14, 2012 3:03 PM 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); Pasqua!, 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); Aaron Gluzman; Aaron Sorrell; Bruce Williams; Bruno, Jeff J (DNR); caunderwood @marathonoil.com; 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; ( michael .j.nelson @conocophillips.com); Abbie Jossie; AKDCWelllntegrityCoordinator; alaska @petrocalc.com; Alexander Bridge; Andrew VanderJack; Anna Rat Barbara F Fullmer; bbritch; bbohrer @ap.org; Bill Penrose; Bill Walker; Bowen Roberts; Bruce Webb; 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; Evans, John R (LDZX); 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); Juanita Lovett; 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); Ted Kramer; Davidson, Temple (DNR); Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen @ak.net Subject: Public Hearing Notice (Cook Inlet Energy) Spacing Exception Redoubt No 2A Attachments: Notice of Public Hearing CIE Redoubt Unit 2A.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 Easy Peel® Labels i ® Bend along line to Ze, AVERY® 5960TM Use Avery® Template 5160® •ed Paper expose Pop -up EdgeTM' l \ (A_ . e} C David Hall CEO Cook Inlet Energy 601 W. 5 Ave., Ste. 310 Anchorage, AK 99501 • Etiquettes faciles a peter 1 Repliez a la hachure afin del www.avery com 11. ;I ;�e� to nnhnrit AVFRV® S1tif1® `4 5ens de ravPle l e rebord Pon -uo"'c i 1- 800 -GO -AVERY f Easy Peel® Labels i . A ® Bend along line to i III Q AVERY® 5960TH ; Use Avery® Template 5160® d Paper x._, expose Pop -up EdgeTM A L Mary Jones David McCaleb XTO Energy, Inc. IHS 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 7 6102 -6298 Houston, TX 77056 Jerry Hod den Richard Neahring ry g NRG Associates Mark Wedman 48 S t . Company President Halliburton Golden, P.O. Box 1655 6900 Arctic Blvd. Golden, CO 80401 - 2433 Colorado Springs, CO 80901 Anchorage, AK 99502 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, AI( 99711 Anchorage, AK 99503 North Slope Borough P. Richard Wagner Gordon Severson P.O. Box Planning Department P.O. Box 60868 3201 Westmar Cir. Barrow, AK K 99723 Box 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 Ninflchik, AK 99639 Soldotna, AK 99669 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669 -7714 \c\ke , ( AC ® ):tiquettes faciles a peter ' R epliez a la hachure afro de 1 WWW I Sens de sir 1 1- Rnn- Grt -ovFRv • . _ . .. _... a*,rnntat ra "'net 1 41 . 4 • • 4 RECEIVED _ Cook Inlet E n e r g y _ DE_`; 0 3201. AOGCC November 26, 2012 Alaska Oil and Gas Conservation Commission 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 Re: Spacing Exception for the Redoubt Shoals Sidetrack of RU -2 (RU -2A) Dear Commissioners, Cook Inlet Energy, LLC (CIE) hereby applies for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(3). Specifically, CIE requests approval to sidetrack the RU -2 Well (API 50- 733 - 20501- 00 -00) for oil within the same governmental quarter section as RU -1 and RU -7. The completions within the sidetrack, to be designated RU -2A, will . be further than 1,000 feet from any other wells capable of producing from the Hemlock PA (Redoubt Shoal Undefined Oil Pool - CO 513) and will be fault- separated from other completions within the governmental quarter section. CIE proposes to reenter the RU -2 Well and sidetrack the well to produce from the previously producing zone. The sidetrack completions will be slightly updip from the completions within the original RU -2. The RU -2 Well has a surface location within Section 14, T. 7 N., R. 14 W., S.M. 1,918 feet from the south section line and 320 feet from the east section line, with a bottom hole location within Section 19, T. 7 N., R. 13 W., S.M. 2,627 feet from the north section line and 1,307 feet from the west section line. The sidetrack has a proposed bottom hole location within Section 19, T. 7 N., R. 13 W., S.M. 2,750 feet from the north section line and 2,500 feet from the west section line. Please refer to enclosed well diagram (Exhibit B) for more detailed information. The attached Exhibit A lists the Landowners, Owners, and Operators within 3,000 feet of the RU -2 Well and their contact information. The attached Exhibit B is a plat prepared by CIE at a scale which complies with 20 AAC 25.055(d)(2). 691/\41-e-147.-/ s� x,.12 -45 The attached Exhibit C is the Notice provided to Landowners, Owners and Operators by certified mail. The attached Exhibit D is an affidavit from Mr. Pirtle Bates, Jr., Certified Professional Landman # 56864 and Land Manager for CIE, verifying the plat and facts contained herein. 601 W. 5 Avenue, Suite 310, Anchorage, AK 99501 (907) 334 -6745 * (907) 334 -6735 fax • Spacing Elpion for the RU -2 Well Sidetrack November 26, 2012 Page 2 of 2 Respectfully, David Hall CEO • Spacing Eeion for the RU -2 Well Sidetrack November 26, 2012 EXHIBIT A Landowner Owner Operator As defined in As defined in As defined in AS 31.05.170(7 AS 31.05.170(10 20 AAC 25.990 46 Le • al Descri s tion ,4444;5' 't 3,. .r.,�" ksa�' ,. State of Alaska Cook Inlet Cook Inlet ADL 374002 Energy, LLC Energy, LLC T. 7N., R. 13W., SEWARD MERIDIAN, ALASKA SECTION 19, PROTRACTED, ALL, 615 ACRES; SECTION 20, PROTRACTED, ALL, 640 ACRES; SECTION 21, PROTRACTED, ALL, 640 ACRES; SECTION 28, PROTRACTED, ALL, 640 ACRES; SECTION 29, PROTRACTED, ALL, 640 ACRES; SECTION 30, PROTRACTED, ALL, 617 ACRES; SECTION 31, PROTRACTED, ALL, 619 ACRES; SECTION 32, PROTRACTED, ALL, 640 ACRES; SECTION 33, PROTRACTED, ALL, 640 ACRES. THIS TRACT CONTAINS 5,691 ACRES MORE OR LESS. State of Alaska Cook Inlet Cook Inlet ADL 381203 Energy, LLC Energy, LLC T. 7 N., R. 14 W., SEWARD MERIDIAN, ALASKA SECTION 13, PROTRACTED, ALL, 640 ACRES; SECTION 14, PROTRACTED, ALL, 640 ACRES; SECTION 23, PROTRACTED, ALL, 640 ACRES; SECTION 24, PROTRACTED, ALL, 640 ACRES; SECTION 25, PROTRACTED, ALL, 640 ACRES; SECTION 26, PROTRACTED, ALL, 640 ACRES. THIS TRACT CONTAINS 3,840 ACRES MORE OR LESS. Contact Information: State of Alaska CERTIFIED MAIL 7010 0290 0002 9144 6484 Department of Natural Resources Alaska Division of Oil and Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99501 -3560 907 - 269 -8800 Cook Inlet Energy, LLC CERTIFIED MAIL Hand Delivered 601 W. 5 Avenue, Suite 310 Anchorage, AK 99501 907 - 334 -6745 • Spacing iron for the RU -2 Well Sidetrack November 26, 2012 EXHIBIT B • Spacing Eildon for the RU -2 Well Sidetrack November 26, 2012 EXHIBIT C • • Cook Inlet Energy_ November 26, 2012 Landowners, Owners and Operators See Distribution List Redoubt Unit Cook Inlet Basin, Alaska RE: Notice Under 20 AAC 25.055(d) of Cook Inlet Energy, LLC's Application for a Spacing Exception for the Redoubt Shoals Sidetrack of RU -2 (RU -2A) Dear Landowner, Owner and/or Operator, Cook Inlet Energy, LLC (CIE) is applying for a Spacing Exception under 20 AAC 25.055(d) and this Notice is being sent by certified mail to meet the notification requirements under 20 AAC 25.055(d). Specifically, CIE submitted a Permit to Drill to sidetrack RU -2 and applied for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(3). CIE plans to sidetrack RU -2 to a location within the same governmental quarter section as RU -1 and RU -7 and reestablish oil production from an area slightly updip from the original completions within RU -2. The proposed bottom hole location and production zones are more than 1,000 feet from other wells capable of producing from the Hemlock Undefined Pool at Redoubt Shoals. The governmental quarter section within which RU -2A will be completed is entirely within the Hemlock Participating Area in the Redoubt Unit. Production from the completed well will be allocated according to the allocations approved in the Hemlock PA Final Redetermination issued by the Alaska Division of Oil and Gas on April 13, 2011 CIE, through a search of the public record, has identified you as a Landowner, Owner or Operator (as defined in AOGCC regulations) within 3,000 feet of the RU -2 Well. Please contact me should you require additional information. Sincerely, David Hall CEO Distribution List: Alaska Division of Oil and Gas & Cook Inlet Energy, LLC 601 W. 5 Avenue, Suite 310, Anchorage, AK 99501 (907) 334 -6745 * (907) 334 -6735 fax • • Cook Inlet Energy_ RECEIVED November 26, 2012 1\1(.)V 2 2012 Landowners, Owners and Operators COOK INLET See Distribution List ENERGY Redoubt Unit Cook Inlet Basin, Alaska RE: Notice Under 20 AAC 25.055(d) of Cook Inlet Energy, LLC's Application for a Spacing Exception for the Redoubt Shoals Sidetrack of RU -2 (RU -2A) Dear Landowner, Owner and/or Operator, Cook Inlet Energy, LLC (CIE) is applying for a Spacing Exception under 20 AAC 25.055(d) and this Notice is being sent by certified mail to meet the notification requirements under 20 AAC 25.055(d). Specifically, CIE submitted a Permit to Drill to sidetrack RU -2 and applied for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(3). CIE plans to sidetrack RU -2 to a location within the same governmental quarter section as RU -1 and RU -7 and reestablish oil production from an area slightly updip from the original completions within RU -2. The proposed bottom hole location and production zones are more than 1,000 feet from other wells capable of producing from the Hemlock Undefined Pool at Redoubt Shoals. The governmental quarter section within which RU -2A will be completed is entirely within the Hemlock Participating Area in the Redoubt Unit. Production from the completed well will be allocated according to the allocations approved in the Hemlock PA Final Redetermination issued by the Alaska Division of Oil and Gas on April 13, 2011 CIE, through a search of the public record, has identified you as a Landowner, Owner or Operator (as defined in AOGCC regulations) within 3,000 feet of the RU -2 Well. Please contact me should you require additional information. Sincerely, /S David Hall CEO Distribution List: Alaska Division of Oil and Gas & Cook Inlet Energy, LLC 601 W. 5 Avenue, Suite 310, Anchorage, AK 99501 (907) 334 -6745 * (907) 334 -6735 fax U.S. Postal Service,, CERTIFIED MAIL, RECEIPT - = (Domestic Mail Only; No Insurance Coverage Provided) u7 For delivery information visit our website at www.usps.corn,, !"Po 7 , , ,,, } tf /A d1 1Q : L' I r � l F i fl 'Y ^:, d . *CP P b x # ,,, ,,,,, fir.- ,.._ ...ti.-» Postage Certified Fee t11 �`�~ Postm E3 Return _ Receipt Fee H /� O (Endorsement Required) ��)) / / C Restricted Delivery Fee / I /L! // (Endorsement Required) O (1J Total Postage &Fees cu State of Alaska Sent To o Department of Natural Resources ra Street, Alaska Division • PO n of Oil and Gas im o r` cry, Su 550 W. 7th Avenue, Suite 1100 Anchorage, AK 99501 -3560 Mil SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY • Complete items 1, 2, and 3. Also complete A. Signature Item 4 If Restricted Delivery Is desired. X — ❑ Agent • Print your name and address on the reverse ti I , n A a 1 0 (C ❑ Addressee so that we can return the card to you. B. R ved b y ( ted Name) Da of D ive • Attach this card to the back of the mailpiece, or on the front if space permits. 'annifor A. D uVnll / �� D. Is delivery address dtifferent from item 1 ❑ es 1. Article Addressed to: If YES, enter <f5 a C ! tf Ey No State of Alaska GEC 0 ( � ( 20t2 ..ff Department of Natural Resources Alaska Division of Oil and Gas t..001K INLET • 550 W. 7th Avenue, Suite 1100 3. Service Type Anchorage, AK 99501 -3560 ❑ Certified Mail C ` l g 0 Registered ❑ Return Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number 7010 0290 0002 9144 6584 (Transfer from service label) PS Form 3811, February 2004 Domestic Return Receipt 102595.02 -M -1540 • Spacing Elion for the RU -2 Well Sidetrack November 26, 2012 EXHIBIT D Affidavit State of Alaska, Third Judicial District Personally appeared before me, Pirtle Bates, Jr., who, being duly sworn according to law, deposes and says: 1. I, Pirtle Bates, Jr., am Land Manager for Cook Inlet Energy, LLC and a Certified Professional Landman (Certification #56864). 2. I have prepared the foregoing Exhibits A & C following a thorough review of land status records at the State of Alaska, Department of Natural Resources, Division of Oil and Gas, the Kenai Peninsula Borough, and the State Recorder's Office for the Anchorage and Kenai Recording Districts. 3. The Landowners, Owners and Operators, as defined in relevant state statutes and regulations, identified in Exhibit A are the result of that record search and correct to the best of my knowledge. 4. The well location was taken from AOGCC records relating to the RU -2 Well (API 50- 733- 20501- 00 -00). 5. The Notice in Exhibit C was sent to the Landowners, Owners and Operators identified in Exhibit A by certified mail. Further the affiant sayeth naught. _>/)- Pirtle Bates, Jr. Date CPL #56864 UNITED STATES OF AMERICA § STATE OF ALASKA § Subscribed and sworn to before me on the _ of November, 2012. N otiumw WRENS / / ,' , ■ig Nota A Public NOTARY ; My commission expires: C' : PUBLIC ; 4= ) Q F P ��/ //!//t►1111111\ ��`