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INDEX CONSERVATION ORDER NO. 678
Trading Bay Field
Trading Bay Middle Kenai "B" Oil Pool
Trading Bay Middle Kenai "D" Oil Pool
Trading Bay Middle Kenai "E" Oil Pool
1. August 9, 2013 Hilcorp Alaska, LLC's (HAK) application for spacing exception to
re -complete well A-32 in the Middle Kenai "B", "D", and "E" Oil
Pools
INDEX CONSERVATION ORDER NO. 678
Trading Bay Field
Trading Bay Middle Kenai "B" Oil Pool
Trading Bay Middle Kenai "D" Oil Pool
Trading Bay Middle Kenai "E" Oil Pool
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
recomplete and produce development
oil well TBF A-32.
BY THE COMMISSION:
Docket CO-13-014
Conservation Order No. 678
Trading Bay Field
Trading Bay Middle Kenai "B" Oil Pool
Trading Bay Middle Kenai "D" Oil Pool
Trading Bay Middle Kenai "E" Oil Pool
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
Jod Colombie
Sne ' 1 Assistant to the Commission
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
333 West 71h 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 )
recomplete and produce development )
oil well TBF A-32. )
IT APPEARING THAT:
Docket CO-13-014
Conservation Order No. 678
Trading Bay Field
Trading Bay Middle Kenai "B" Oil Pool
Trading Bay Middle Kenai "D" Oil Pool
Trading Bay Middle Kenai "E" Oil Pool
September 5, 2013
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 "B" Oil Pools, Trading Bay Middle Kenai "D" Oil
Pools, and Trading Bay Middle "E" Oil Pools within the Trading Bay ST A-32 (TBF A-32)
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-32
development oil well that is located on the west side of the Cook Inlet, Kenai Peninsula
Borough, Alaska.
2. The TBF A-32 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 2,372 feet from the south
line and 884 feet from the east line of Section 4, Township 9 North, Range 13 West, Seward
Meridian.
3. The TBF A-32 well is located entirely within State of Alaska Lease ADL 18731.
4. The TBF A-32 well is currently completed in the Hemlock Oil Pool. This well will be re -
completed in the Middle Kenai "B", "C", "D", and "E" Oil Pools, Hemlock Oil Pool, and an
undefined oil pool underlying the Hemlock Oil Pool [West Foreland]. No spacing
exceptions are required for the Middle Kenai "C" Oil Pools, Hemlock Oil Pool, or for the
West Foreland.
CO 678
September 5, 2013
Page 2 of 3
5. Completed development oil wells within the Middle Kenai "B" Oil Pools in the SE1/4
Section 4, Township 9 North, Range 13 West, Seward Meridian, are TBF A-04, TBF A-07,
TBF A-14, TBF A-17RD, TBF A-22, TBF A-23, and TBF A-24RD.
6. Completed development oil wells within the Middle Kenai "D" Oil Pools in the SETA
Section 4, Township 9 North, Range 13 West, Seward Meridian are TBF A-01 RD, TBF A-
02, TBF A-07, TBF-09RD, TBF A-10, TBF A-11, and TBF A-09RD.
7. Completed development oil wells within the Middle Kenai "E" Oil Pools in the SETA
Section 4, Township 9 North, Range 13 West, Seward Meridian are TBF A-01RD, TBF A-
02RD, TBF A-09RD and TBF A-16RD.
8. 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..."
9. The proposed re -completion of TBF A-32 targets un-drained reserves that cannot be reached
by wells conforming to applicable spacing restrictions.
10. 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-32 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-32 development oil well in order to maximize
recovery of reserves.
2. A spacing exception to allow re -completion of the TBF A-32 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-32 development oil well is approved. Hilcorp may proceed as long as it complies with
applicable Alaska laws, and all other legal requirements.
CO 678
September 5, 2013
Page 3 of 3
DONE at Anchorage, Alaska and dated September 5, 2013.
Cathy , . Foerster Daniel T. Seamount, Jr.
Chair, Commissioner Commissioner
f
TION 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), "[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.
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 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); 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, lames M (DNR); Gary
Orr; Smith, Graham O (PCO); Greg Mattson; Heusser, Heather A (DNR); James Rodgers;
Jason Bergerson; Jennifer Starck; jill.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 i ♦ Bend along line to AVERY® 51600
Use Avery® Template 51600 Feed Papers expose Pop-up EdgeTM
Judy Stanek
Landman
Hilcorp Alaska, LLC
Post Office Box 244027
Anchorage, AK 99524-4027
ftiquettes faciles a peter ; A Repliez 6 la hachure afin de ; www.avery.com
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lltilicP7 le naharit AVERY® 5160® ! _� ___ rev6ler le rebord Pop upTM 1-1300-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" 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 is
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
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' Ct.
Anchorage, AK 99515-4295
Gordon Severson
3201 Westmar Cir.
Anchorage, AK 99508-4336
James Gibbs
Post Office Box 1597
Soldotna, AK 99669
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•
A U G 13 2013
Hilcorp Alaska, LLC
A®G�C
August 9, 2013
Ms. Cathy P. Foerster, Chair
Alaska Oil and Gas Conservation
Commission
333 West 7th Avenue, Suite 100
Anchorage, AK 99501
RE APPLICATION FOR SPACING EXCEPTION
TRADING BAY FIELD A-32 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-32 in the Middle Kenai "B", "D", and
"E" Oil Pools. The productive intervals and locations are depicted on the attached plats,
Exhibits A-1, A-2, A-3, 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 B Oil Pool Producing Interval:
- State Lease ADL 18731
- 1,442' FSL, 565' FEL
- Section 04, T9N-R13W SM
Top of the Middle Kenai D Oil Pool Producing Interval:
- State Lease ADL 18731
- 1,899' FSL, 1,266' FEL
- Section 04, T9N-R13W SM
Top of the Middle Kenai E Oil Pool Producing Interval:
- State Lease ADL 18731
- 2,090' FSL, 1,124' FEL
- Section 04, T9N-R13W SM
A-32 Spacing Exception
August 9, 2013
Page 2 of 3
Bottom Hole Location
- State Lease ADL 18731
- 2,372' FSL, 884' FEL
- Section 04, T9N-R13W SM
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-32 well has or is currently producing from the Middle Kenai "C" and Hemlock Oil
Pools. If the current re -completions are successful it will also produce from the Middle Kenai
"B", "D", "E" Pools and West Foreland Formation. Spacing exceptions are only necessary
for completions in the Middle Kenai "B", "D" 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.' These producing intervals would be closer than 660 feet from
another well producing in the same pool. No spacing exceptions are necessary for the
Middle Kenai "C" Pool or for the West Foreland Formation.
The proposed A-32 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-32 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.
1 Completed oil wells within the southeast quarter of Section 4:
the "B" Pool include A-04, A-07, A-14, A-17RD, A-22, A-23, and A-24RD wells;
the "D" Pool include A-01RD, A-02, A-07, A-09RD, A-10, A-11, and A-9RD wells; and
the "E" Pool include A-01RD, A-02RD, A-09RD and A-16RD wells.
A-32 Spacing Exception
August 9, 2013
Page 3 of 3
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-32 well.2
If you require additional information regarding the A-32 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
z Rule 9 provides, "[ujpon 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.
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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-32 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-32 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 9th day of August, 2013.
-Z ' L�� - 22 - L�6�-
NOTA PUBLIC IN AND FOR
THE ATE OF ALASKA
My commission expires:
j STATE OF ALASY�A,
NOTARY PUBLIC10
Zelma M. Clarke
My Commission BomS Nov 10, 2016
•
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