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Home My WebLink AboutCO 677• 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. 'L o (4 Order File Identifier Organizing (done) RESCAN ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: NOTES: Al ❑ Two-sided III IIIII IIIIIIIII DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: ❑ Rescan Needed 1111111111111111111 OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: ❑ Other:: BY: Angela ✓ Date: e2/\312c�\ `'� /s/ Qkr Project Proofing 1I I II II II I I III 11 III BY: Angela Date: 2l\3(2�\`� /s/ Q4(_ Scanning Preparation BY: Angela ✓ Production Scanning _ x 30 = + = TOTAL PAGES (Count does not include cover sheet) Date: `?1\'�2�\� /s/ Ck&\.C— IIIIIIIIIIIIII IIIII Stage 1 Page Count from Scanned File: \9 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: YES NO BY: Angela `� Date: '3120\� /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: /s/ 1111111111111111111111 9 Scannin is complete at this point unless rescanning is required. ReScanned III IIIIIIIIIII IIIII BY: Angela Date: /s/ Comments about this file: Quality Checked III IIIIII III IIII III INDEX CONSERVATION ORDER NO. 677 Trading Bay Field Trading Bay Middle Kenai "C" Oil Pools Trading Bay Middle Kenai "E" Oil Pools 1. August 9, 2013 Hilcorp Alaska, LLC's (HAK) application for spacing exception to re -complete well A-16 in the Middle Kenai "C" and "E" Oil Pools INDEX CONSERVATION ORDER NO. 677 Trading Bay Field Trading Bay Middle Kenai "C" Oil Pools Trading Bay Middle Kenai "E" Oil Pools STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC. for an exception to the well spacing provisions of Rules 4 and 5 of Conservation Order 93 to re - complete and produce development oil well TBF A-16RD. BY THE COMMISSION: Docket CO-13-015 Conservation Order No. 677 Trading Bay Field Trading Bay Middle Kenai "C" Oil Pools Trading Bay Middle Kenai "E" Oil Pools September 5, 2013 NOTICE CLOSING DOCKET The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 5th day of September, 2013. BY DIRECTION OF THE COMMISSION 1 Assistant to the Commission • 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7t" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp ) Docket CO-13-015 Alaska, LLC. for an exception to the ) Conservation Order No. 677 well spacing provisions of Rules 4 and ) Trading Bay Field 5 of Conservation Order 93 to re- ) Trading Bay Middle Kenai "C" Oil Pools complete and produce development oil ) Trading Bay Middle Kenai "B" Oil Pools well TBF A-16RD. ) September 5, 2013 IT APPEARING THAT: By letter received August 13, 2013, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the well spacing provisions of Rules 4 and 5 of Conservation Order 93 to allow re -completion of and development of Trading Bay Middle Kenai "C" Oil Pools and Trading Bay Middle Kenai "E" Oil Pools within the Trading Bay ST A-16RD (TBF A-16RD) development oil well. The applicable rules are: Conservation Order 93 Rule 4, "not more than four (4) completed oil wells shall be allowed in each of the defined pools in any governmental quarter section". Conservation Order 93 Rule 5, "no oil well shall be completed in any defined pools closer than 660 feet, true measured distance, to any other oil well in the same defined pools". FINDINGS: 1. Hilcorp is the operator of the Trading Bay Field and is operator of the TBF A-16RD development oil well that is located on the west side of the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The TBF A-16RD well is an offshore, deviated development oil well with a surface location 1,609 feet from south line and 565 feet from east line of Section 4, Township 9 North, Range 13 West, Seward Meridian. The bottom -hole location is 2,503 feet from the south line and 2,556 feet from the east line of Section 4, Township 9 North, Range 13 West, Seward Meridian. 3. The TBF A-16RD well is located entirely within State of Alaska Lease ADL 18731. 4. The TBF A-16RD well has or is currently completed in the Middle Kenai "D" and Hemlock Oil Pools. This well will be re -completed in the Middle Kenai "C", "D", and "E" Oil Pools and the Hemlock Oil Pool. No spacing exceptions are required for the Middle Kenai "D" Oil Pools or for the Hemlock Oil Pool. CO 677 September 5, 2013 Page 2 of 3 5. Completed development oil wells within the Middle Kenai "C" Oil Pools in the SE1/4 Section 4, Township 9 North, Range 13 West, Seward Meridian, are TBF A-07, TBF A- 09RD, TBF A-10, TBF A-11, TBF A- 13, and TBF A-32 wells. 6. Completed development oil wells within the Middle Kenai "E" Oil Pools in the SE1/4 Section 4, Township 9 North, Range 13 West, Seward Meridian are TBF A-01 RD, TBF A- 02, TBF A-07, and TBF A-09RD wells. 7. Rule 9 of Conservation Order No. 93 specifies in part that the AOGCC "Upon request of the applicant and a showing that all affected parties have been notified of such request, ...may authorize the drilling of any well at any location..." 8. The proposed re -completion of TBF A-16RD targets un-drained reserves that cannot be reached by wells conforming to applicable spacing restrictions. 9. In conformance with 20 AAC 25.055(d) and Rule 9 of Conservation Order No. 93, Hilcorp has given notice of this request to all potentially affected landowners, owners and operators —those within 1,000 foot radius of the TBF A-16RD well —the State of Alaska and Hilcorp Alaska, LLC. Hilcorp sent notice of its application to the State of Alaska by certified mail on August 12, 2013. The AOGCC received no objection or comment regarding Hilcorp's request. CONCLUSIONS: 1. An exception to the well spacing provisions of Rules 4 and 5 of Conservation Order No. 93 is necessary to allow re -completion of the TBF A-16RD development oil well in order to maximize recovery of reserves. 2. A spacing exception to allow re -completion of the TBF A-16RD development oil well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: Hilcorp's August 13, 2013 application for an order granting an exception to the well spacing requirements of Rules 4 and 5 of Conservation Order No. 93 to allow re -completion of the TBF A-16RD development oil well is approved. Hilcorp may proceed as long as it complies with applicable Alaska laws, and all other legal requirements. CO 677 September 5, 2013 Page 3 of 3 go DONE at Anchorage, Alaska and dated September 5, 2013. P Cathy P. Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE Commissioner 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. Singh, Angela K (DOA) From: Fisher, Samantha J (DOA) Sent: Friday, September 06, 2013 3:07 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody 1 (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha 1 (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Hunt, Jennifer L (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (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); Singh, Angela K (DOA); Turkington, Jeff A (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Bill Penrose; Bill Walker; Brian Havelock; caunderwood@marathonoil.com; Cliff Posey; Colleen Miller; Crandall, Krissell; D Lawrence; Dave Harbour, Dave Matthews; David Boelens; David Duffy; David Goade; David House; David Scott; David Steingreaber; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Elowe, Kristin; Francis S. Sommer; Frank Molli; Gary Laughlin; Schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; Gregory Geddes; gspfoff; Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jerry McCutcheon; Jim White; Jim Winegarner, Joe Lastufka; news@radiokenai.com; Burdick, John D (DNR); Easton, John R (DNR); John Evans; John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; Klippmann; Gregersen, Laura S (DNR); Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P. Worcester, Kremer, Marguerite C (DNR); Michael Jacobs (michael.w jacobs@p66.com); Mike Bill; mike@kbbi.org; 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); Pioneer; Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Robert Campbell; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Moothart, Steve R (DNR); Steven R. Rossberg; Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer; Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Amanda Dial; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; David Ross; Donna Vukich; Eric Lidji; Erik Opstad; Franger, James M (DNR); Gary Orr; Smith, Graham O (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers; Jason Bergerson; Jennifer Starck; jilt.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; Jolie Pollet; King, Kathleen J (DNR); Laney Vasquez; Lois Epstein; Louisiana Cutler; Marc Kuck; Steele, Marie C (DNR); Matt Gill; Matthew Armstrong; Michael Quick, Bettis, Patricia K (DOA); Perrin, Don J (DNR); Peter Contreras; Peterson, Shaun (DNR); Pexton, Scott R (DNR); Pollard, Susan R (LAW); Richard Garrard; Ryan Daniel; Sandra Lemke; Talib Syed; Terence Dalton; Tim Flynn; Wayne Wooster, Woolf, Wendy C (DNR); William Hutto; William Van Dyke Subject: CO 677 and CO 678 (Trading Bay Field) Attachments: co678.pdf, co677.pdf Samantha Fisher Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) Easy Peel® Labels Use AveryO Template 51600 Feed Paper Bend along line to D AVERY@ 51600 expose Pop-up Edgelm Ilk Judy Stanek Landman Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 Etiquettes faciles a peter ; A Repliez 6 la hachure afin de ; www.avery.com Sens de I ItilicP7 IP aaharit AVFRY® SMOO ! _. _____ .. r6veler le rebord Pop-upTM ! 1-800-GO-AVERY Easy Peel® labels Use Avery® Template 51604D Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669-7714 Jerry Hodgden Hodgden Oil Company 408 18`h St. Golden, CO 80401-2433 Bernie Karl K&K Recycling Inc. Post Office Box 58055 Fairbanks, AK 99711 North Slope Borough Planning Department Post Office Box 69 Barrow. AK 99723 Jack Hakkila Post Office Box 190083 Anchorage, AK 99519 A Bend along line to Feed Paper expose Pop-up EdgeTM David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste. 100 Houston, TX 77056 Richard Neahring NRG Associates President Post Office Box 1655 Colorado Springs, CO 80901 CIRI Land Department Post Office Box 93330 Anchorage, AK 99503 Richard Wagner Post Office Box 60868 Fairbanks, AK 99706 Darwin Waldsmith Post Office Box 39309 Ninilchik, AK 99639 AVERY0 5960TI4 A George Vaught, Jr. Post Office Box 13557 Denver, CO 80201-3557 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 795 E. 94`h Ct. Anchorage, AK 99515-4295 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 James Gibbs Post Office Box 1597 Soldotna, AK 99669 V�� CL Ittiquettes fadles a peter ; A Repliez a la haehure afin de ; wtwrwr.avery.Com li ttilien' in nahnri4 ®VFRV® 49r,(i® i —Sens de y rPVPIPr IP rPhnrd Pnn-ion`rm ! 9_RAn.r.n.&VFRV i #1 0 Hilcorp Alaska, LLC August 9, 2013 Ms. Cathy P. Foerster, Chair Alaska Oil and Gas Conservation Commission if333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RECEivIb AUG 132013 GC AGG RE APPLICATION FOR SPACING EXCEPTION TRADING BAY FIELD A-16RD WELL Dear Ms. Foerster: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone:907-777-8341 Fax:907-777-8580 jstanek@hilcorp.com Hilcorp Alaska, LLC (HAK), as Operator of the Trading Bay Field hereby submits this application for spacing exception to re -complete well A-16RD in the Middle Kenai "C" and "E" Oil Pools. The productive intervals and locations are depicted on the attached plats, Exhibits A-1, and A-2, and are further indicated below: Surface Location: - State Lease ADL 18731 - 1,609' FSL, 565' FEL - Section 04, T9N-R13W SM Top of the Middle Kenai C Oil Pool Producing Interval: - State Lease ADL 18731 - 2,188' FSL, 1,922' FEL - Section 04, T9N-R13W SM Top of the Middle Kenai E Oil Pool Producing Interval: - State Lease ADL 18731 - 2,379' FSL, 2,311' FEL - Section 04, T9N-R13W SM Bottom Hole Location - State Lease ADL 18731 - 2,503' FSL, 2,556' FEL - Section 04, T9N-R13W SM A-16RD Spacing Exception • August 9, 2013 Page 2 of 3 In accordance with Rules 4 and 5 of Conservation Order 93, no more than four (4) completed oil wells shall be allowed in each of the defined pools in any governmental quarter section or closer than 660 feet to any other oil well in the same defined pool. The A-16RD well has or is currently producing from the Middle Kenai "D" and Hemlock Oil Pools. If the current re -completions are successful it will also produce from the Middle Kenai "C", and "E" Pools. Spacing exceptions are only necessary for completions in the Middle Kenai "C" and "E" Pools as there would be more wells producing from each pool than allowed in the southeast quarter of Section 4, Township 9 North, Range 13 West.' No spacing exceptions are necessary for the Middle Kenai "D" Pool or Hemlock Pool. The proposed A-16RD well targets un-drained reserves that cannot be reached by wells conforming to applicable spacing restrictions. The correlative rights of all affected owners, landowners and operators will be protected by exception approval. At the date of this mailing, in accordance with 20 AAC 25.055 (d)(1), notice of our intent to re -complete has been sent certified mail to all owners, landowners, and operators (Exhibit B) of property (ADL 18731) within 1,000 feet of the A-16RD well. A copy of this application (landowner notice) was sent by certified mail and a certified mailing receipt has been attached to this application. Pursuant to 20 AAC 25.055 (d)(3), an affidavit (Exhibit C) is enclosed stating the undersigned is acquainted with the facts and verifying that all facts are true, set forth herein, are true. It is requested that the Commission approve, by Administrative Approval, pursuant to Rule 9, Conservation Order No. 93, an exception to the statewide spacing regulation for re - completing the A-16RD well.2 'Completed oil wells within: the "C" Pool include A-07, A09RD, A-10, A-11, A-13, A-32 wells; and the "E" Pool include A-01RD, A-02, A-07, A-09RD, wells. 2 Rule 9 provides, "[u]pon request of the applicant and a showing that all affected parties have been notified of such request, the Committee may authorize the drilling of any well at any location, the termination or suspension of any pressure maintenance project, the testing or conversion of any well, or any other operation reasonably designed to further the purposes of a pressure maintenance program. A-16RD Spacing Exception • August 9, 2013 Page 3 of 3 If you require additional information regarding the A-16RD well, please contact Mr. Matt Frankforter, Senior Geologist, at 907-777-8376, or you may contact the undersigned at 907-777-8341. Sincerely, Judy Stanek Landman cc: William Barron, Director, Division of Oil and Gas, DNR J y a, Q°� � ¢ N 3 a, ° Q g 9 0 �LL 444 w kD d0 _ ? W O w c% @LL N q6) N U oL� • 1 I a 1 1 1 1 O Q. O N a, a U +' LU U a^ s •Y CL X W f^0 CL MWJ U J J CO g J o �b d � Q m R � S� �# � GGXkF J Z a a p{ S §§ V,8 Lin FBmw8855 _ Z ~ LU M o m -------------- -L* ----- - � 1 00 1- Z y m 0 E C fl. C.) O I t O m V I U p N 1 (D 'a 0 ' > C O. v L O` a a a a • LEASE ADL-18731 (Section 4) T9N-R13W Exhibit B LANDOWNER DNR Division of Oil and Gas 550 West 7th Avenue, Suite 1100 Anchorage, AK 99501-3560 Attn: William Barron, Director OWNER Hilcorp Alaska, LLC OPERATOR Hilcorp Alaska, LLC Exhibit C VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA ADL 18731 A-16RD Well Trading Bay Unit I, Judy Stanek, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with the application submitted for the drilling of the A-16RD well in the Trading Bay Field. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(3) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska, this 9th day of August, 2013. Jud tanek Landman STATE OF ALASKA THIRD JUDICIAL DISTRICT SUBSCRIBED TO AND SWORN before me this 9ch day of August, 2013. NOT Y PUBLIC IN AND FOR THE TATE OF ALASKA My commission expires:// /� STATE OF ALASKA NOTARY PUBLIC Zelma M. Clarke My C�nmialon E 4_Plov 10, 2016 '.i fi#+'s �Yi� F v I Postage 1 $ /, GNU t v7 U O V) O (LO O O O O L0 Z _ � � O i O U) 0) C tli O CU Q Y Q l O 0 O ry O � CD 0 Lo Q O O Certified Fee ( J!� 00 Return Receipt Fee Postmark Here Q p (Endorsement Required) 1:3 IZI Restricted Delivery Fee Q O (Endorsement Required) ..Ll —a Total Postage & Fees $ a ra -- ni ru 'sentTo Bill Barron, Direc o- r — " rq o Street Ap Alaska Department of Natural Resources ------ r` P- orPoeo; Division of Oil and Gas City State 550 West 7th Ave, Suite 1100 AnchAK 995011.1.11M-3560 orse, A-16RD 03 wQj � M Q O m Cr) 't c n r- EM 0 a� o 00 C0 0 G 00 i 0o C O Q I— � a_ U X W