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Alaska Oil and Gas Conservation Commission
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•
2.
Index Conservation Order 682
October 17, 2013 Hilcorp's request for spacing exception Susan Dionne No.
2A
---------------------- Emails
October 28, 2013 Notice of Public Hearing, affidavit of publication, email
distribution, and mailings.
Conservation Order 682
•
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
333 West 7th Avenue, Suite 100
Anchorage Alaska 99501
Re: THE APPLICATION OF Hilcorp Alaska,
LLC to amend Conservation Order No. 531 to
grant a spacing exception for sidetrack drilling,
testing, completion, and production of the
Susan Dionne No. 2A gas development well
within 1,500' of a property line where the
owner and landowner are not the same on both
sides of the line and within 3,000' of a well
that is, or may be capable of, producing from
the same pool.
Docket Number: CO- 13-23
Conservation Order No. 682
Susan Dionne No. 2A
Development Gas Well
Ninilchik Field
Ninilchik Unit
Ninilchik, Susan Dionne Beluga
Undefined Gas Pool
Kenai Peninsula Borough, Alaska
December 26, 2013
IT APPEARING THAT:
1. By a letter received October 22, 2013, Hilcorp Alaska, LLC (Hilcorp) requested
amendment of Conservation Order No. 531 (CO 531) to grant a spacing exception to
allow sidetrack drilling, testing, completion, and production of the Susan Dionne No. 2A
gas development well within 1,500' of a property line where the owner and landowner
are not the same on both sides of the line and within 3,000' of a well that is, or may be
capable of, producing from the same pool.
2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission
(AOGCC) tentatively scheduled a public hearing for December 3, 2013. On October 25,
2013, the AOGCC published notice of the opportunity for that hearing on the State of
Alaska's Online Public Notice website and on the AOGCC's website, electronically
transmitted the notice to all persons on the AOGCC's email distribution list. On October
28, 2013, the AOGCC mailed printed copies of the notice to all persons on the AOGCC's
mailing distribution list. On October 28, 2013, the notice was published in the
ANCHORAGE DAILY NEWS.
3. Pursuant to 20 AAC 25.055(d)(1), Hilcorp sent by certified mail notice of the application
to all owners, landowners, and operators of all properties within a 3,000-foot radius of the
proposed Susan Dionne 2A well. Hilcorp provided the AOGCC with a copy of the notice,
date of mailing, Certified Mail Receipts, and addresses to which the notice was sent.
4. No protest to the application or request for hearing was received.
5. On November 19, 2013, the tentatively scheduled public hearing was vacated.
6. Because Hilcorp provided sufficient information upon which to make an informed
decision, the request can be resolved without a hearing.
Conservation Order 682 •
December 26, 2013
Page 2 of 3
FINDINGS:
1. Hilcorp is the operator of the Ninilchik Field, the Ninilchik Unit, and the proposed Susan
Dionne 2A gas development well, which are located in the Kenai Peninsula Borough,
Alaska.
2. Susan Dionne 2A will be a deviated re -drill (sidetrack) of existing gas development well
Susan Dionne No. 2 (Susan Dionne 2), which has an onshore surface location 219' from
the south line and 1,418' from the east line of Section 6, Township 1 South, Range 13
West, Seward Meridian (S.M.). The projected offshore bottom -hole location for Susan
Dionne 2A is 2,339' from south line and 2,094' from west line of Section 6, Township 1
South, Range 13 West, S.M.
3. The deeper portion of the Susan Dionne 2 well will be permanently plugged and
abandoned. Susan Dionne 2A will re -use the shallow casing of Susan Dionne 2. Susan
Dionne 2A will be kicked off and drilled to a new bottom -hole location.
4. The surface location of Susan Dionne 2 and Susan Dionne 2A is situated on Kenai
Peninsula Borough Parcel No. 15701073. The landowner of this parcel is a private
person; Hilcorp is the owner and surface estate owner. The bottom -hole location of
Susan Dionne 2A will lie within State of Alaska lease ADL 359242.
5. Susan Dionne 2A will target reservoir sandstone beds within the Susan Dionne Beluga
Undefined Gas Pool (SD Beluga Undefined Pool). Gas development well Susan Dionne
No. 7 is, or may be capable of, producing from reservoirs assigned to this pool and lies
within 3,000' of planned well Susan Dionne 2A.
6. Susan Dionne 2A will access gas reserves that are not accessible to other wells because
Beluga sandstone reservoirs are lenticular and discontinuous. Wells producing from the
SD Beluga Undefined Pool in this area reportedly drain areas ranging from 10 to 180
acres in size.
7. On October 18, 2013, Hilcorp sent the application for exception by certified mail to all
affected owners, landowners, and operators—i. e., State of Alaska, CIRI, and eight private
persons. Hilcorp provided addresses and Certified Mail Receipts to the AOGCC as proof
that the application was mailed to all affected owners, landowners, and operators.
8. The AOGCC received no comments, objections, or protests in response to the public
notice regarding the proposed Susan Dionne 2A well or to the notification sent by
Hilcorp to all affected owners, landowners, and operators within 3,000' of Susan Dionne
2A.
9. CO 531 granted an exception to the well spacing provisions of 20 AAC 25.055(a)(2) and
20 AAC 25.055(a)(4) for the purpose of drilling and producing the Susan Dionne 2 gas
development well.
CONCLUSIONS:
1. Susan Dionne 2A will recover reserves that are not accessible to existing gas
development wells.
Conservation Order 682 •
December 26, 2013
Page 3 of 3
2. CO 531 granted an exception to spacing provisions for the Susan Dionne 2 gas
development well. Since Susan Dionne 2A will be a separate well, statewide regulations
20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) govern spacing for Susan Dionne 2A.
3. The AOGCC considers Hilcorp's October 22, 2013 letter to be an application for an
exception to spacing provisions filed pursuant to 20 AAC 25.055(d).
4. An exception to the well spacing provisions of 20 AAC 25.055(a)(2) and 20 AAC
25.055(a)(4) is necessary to allow drilling, testing, completion, and production of the
Susan Dionne 2A gas development well.
5. An exception to the well spacing provisions of 20 AAC 25.055(a)(2) and 20 AAC
25.055(a)(4) for the Susan Dionne 2A gas development 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 October 22, 2013 application for an order granting an exception to well spacing
provisions of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to allow drilling, testing,
completion, and production of the Susan Dionne 2A gas development well within the Ninilchik
Field, Ninilchik Unit, Ninilchik, Susan Dionne Beluga Undefined Gas Pool is hereby approved
as long as Hilcorp complies with the terms of all lease agreements, applicable Alaska laws, and
all other legal requirements.
DONE at Anchorage, Alaska and dated December 26, 2013.
A P4'1,4�
Cathy . Foerster Daniel T. Seamount, Jr.
Chair, Commissioner Commissioner
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.
•
Singh, Angela K (DOA)
From: Colombie, Jody J (DOA)
Sent: Thursday, December 26, 2013 3:13 PM
To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe
L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA);
Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA);
Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Hunt, Jennifer L (DOA); Johnson, Elaine
M (DOA); Jones, Jeffery B (DOA); Eaton, Loraine E (DOA); Bender, Makana K (DOA);
Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Norman, John K (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);
Turkington, Jeff A (DOA); Wallace, Chris D (DOA);
(michael j.nelson@conocophillips.com); AKDCWeIIIntegrityCoordinator; Alexander
Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org;
Barron, William C (DNR); Bill Penrose; Bill Walker; Brian Havelock; Burdick, John D (DNR);
Cliff Posey; Colleen Miller; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; 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; Evans, John R (LDZX); Francis S. Sommer; Frank
Molli; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.;
Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington oarlington@gmail.com);
Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim
Winegarner; Joe Lastufka; news@radiokenai.com; Easton, John R (DNR); John Garing;
Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie
Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Kiorpes, Steve T; Klippmann; Gregersen,
Laura S (DNR); Leslie Smith; Lisa Parker; Louisiana Cutler; Luke Keller; Marc Kovak;
Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P.
Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; 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); Randall Kanady; Randy L. Skillern; Randy Redmond;
Rena Delbridge; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sandra Haggard; Sara
Leverette; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky;
Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smart Energy Universe; 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
(tmgrovier@stoel.com); Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Vinnie
Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola
Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR);
Casey Sullivan; David Lenig; David Tetta; Perrin, Don J (DNR); Donna Vukich; Eric Lidji;
Erik Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Hans Schlegel
(hans.schlegel@ge.com); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason
Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo;
Josh Kindred; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W
(DNR); Marc Kuck; Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill;
Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Bettis, Patricia K (DOA); Peter
Contreras; Pollet, Jolie; Richard Garrard; Ryan Daniel; Sandra Lemke; Pexton, Scott R
(DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Todd, Richard J
(LAW); Tostevin, Breck C (LAW); Wayne Wooster; Woolf, Wendy C (DNR); William Hutto;
William Van Dyke
• •
Subject: co682 (Hilcorp) Susan Dionne 2A
Attachments: co682.pdf
Jody J. Colombie
AOGCC Special Staff
Alaska Oil and Gas Conservation Commission
333 West 7th Avenue
Anchorage, Alaska 99501
iodu.colombie aalaska.aov
Office: (907) 793-1221
Fax: (907) 276-7542
Easy PeelO Labels i S
AVERY 51600
Use Avery® Template 51600 j • ! 1
David W. Duffy
Landman
Hilcorp Alaska, LLC
Post Office Box 244027
Anchorage, AK 99524-4027
Etiquettes faciles a peter ; O Repliez a la hachure afin de ; vvww.avery.com
® ® Sens de TM 1-800-GO-AVERY
Utilises le aabarit AVERY 5160 ,.6.,.,.,...,.,.. reveler le rebord Pop-up ,
•
•
David McCaleb
Penny Vadla IHS Energy Group
399 W. Riverview Ave. GEPS
Soldotna, AK 99669-7714 5333 Westheimer, Ste. 100
Houston, TX 77056
Jerry Hodgden Richard Neahring
Hodgden Oil Company NRG Associates
408 18t' St President
Golden, CO 80401-2433 Post Office Box 1655
Colorado Springs, CO 80901
Bernie Karl
CIRI
K&K Recycling Inc.
Land Department
Post Office Box 58055
Post Office Box 93330
Fairbanks, AK 99711
Anchorage, AK 99503
North Slope Borough
Planning Department Richard Wagner
Post Office Box 69 Post Office Box 60868
Fairbanks, AK 99706
Barrow, AK 99723
Jack Hakkila Darwin Waldsmith
Post Office Box 190083 Post Office Box 39309
Anchorage, AK 99519 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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•
7STATE OF ALASKA
ADVERTISING
ORDER
NOTICE TO PUBLISHER
INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED
AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
ADVERTISING ORDER NO.
A 0� 1 4�o� O
A
SEE BOTTOM FOR INVOICE ADDRESS
F
R
D
M
AOGCC
333 W 7th Ave, Ste 100
Anchorage, AK 99501
AGENCY CONTACT
Jody Colombie
DATE OF A.O.
October 25, 2013
PHONE
9 79 — 221
PCN
DATES ADVERTISEMENT REQUIRED:
October 28, 2013
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
o
Anchorage Daily News
PO Box 149001
Anchorage, AK 99514
g
SPECIAL INSTRUCTIONS:
Type of Advertisement Legal® ❑ Display Classified
❑Other (Specify)
SEE ATTACHED
SEND INVOICE IN TRIPLICATE
TO
AOGCC, 333 W. 7th Ave., Suite 100
Anchorage, AK 99501
PAGE 1 OF
2 PAGES
TOTAL OF
ALL PAGES $
REF
TYPE
I NUMBER
AMOUNT
DATE
COMMENTS
1
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2
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1 02910
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REQUISITIONED BY
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DIVISION APPROVAL:
02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving
AOTRM
0
Notice of Public Hearing
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket # CO-13-023. The application of Hilcorp Alaska, LLC (Hilcorp) to amend
Conservation Order No. 531 to allow for sidetrack drilling, testing, completion and production of
the Susan Dionne No. 2A development gas well from the Undefined Beluga Pool within the
Ninilchik Unit.
Hilcorp by letter dated October 17, 2013, requests the Alaska Oil and Gas Conservation
Commission (AOGCC) issue an order amending Conservation Order No. 531 and granting an
exception to the spacing requirements of 20 AAC 25.055(a) to allow drilling, testing, completion
and production of the Susan Dionne No. 2A development gas well within 1,500 feet of a
property line where the owner and landowner are not the same on both sides of the line and
within 3,000' of another well that is, or may be capable of, producing from the same pool.
Susan Dionne No. 2A
Surface Location: 219' from the south line and 1,418' from the east line of Section 6, Township
1 South, Range 13 West, Seward Meridian (S.M.).
Top of Productive Horizon Location: 1,393' from the south line and 2,049' from the east line of
Section 6, Township 1 South, Range 13 West, S.M.
Bottom -hole Location: 2,339' from south line and 2,094' from west line of Section 6, Township
1 South, Range 13 West, S.M.
The AOGCC has tentatively scheduled a public hearing on this application for December 3, 2013
at 1:00 pm at 333 West 71h Avenue, Suite 100, Anchorage, Alaska 99501. To request that the
tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later
than 4:30 p.m. on November 13, 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 (907) 793-1221 after
November 15, 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 November 29, 2013, except that, if a
hearing is held, comments must be received no later than the conclusion of the December 3, 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 (907) 793-1221, no later
than December 2, 2013.
Cathy . /Fo�er"ster
Chair, Commissioner
270227 •
0000742646
$ 278.90
AFFIDAVIT OF PUBLICATION
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Joleesa Stepetin
being first duly sworn on oath deposes
and says that he is a representative of
the Anchorage Daily News, a daily
newspaper. That said newspaper has
been approved by the Third Judicial
Court, Anchorage, Alaska, and it now
and has been published in the English
language continually as a daily
newspaper in Anchorage, Alaska, and
it is now and during all said time was
printed in an office maintained at the
aforesaid place of publication of said
newspaper. That the annexed is a
copy of an advertisement as it was
published in regular issues (and not in
supplemental form) of said newspaper
on
October 28, 2013
and that such newspaper was regularly
distributed to its subscribers during all
of said period. That the full amount of
the fee charged for the foregoing
publication is not in excess of the rate
charged private individuals.
Signed `�-
Subscribed and sworn to before me
his 28th day of October, 2013
Notary Public in and for
The State of Alaska.
Third Division
Anchorage, Alaska
MY COMMISSION EXPIRES
Notice of Public Hearing
RECEIVED
OCT 3 0 2013
AOGCC
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket # CO-13-023. The application of Hilcorp Alaska, LLC
(Hilcorp) to amend Conservation Order No. 531 to allow for sidetrack
drilling, testing, completion and production of the Susan Dionne No. 2A
development gas well from the Undefined Beluga Pool within the
Ninilchik Unit.
Hilcorp by letter dated October17, 2013, requests the Alaska Oil and
Gas Conservation. Commission (AOGCC) issue an order amending
Conservation Order No. 531and granting an exception to the spacing
requirements of 20 AAC 25.055(a) to allow drilling, testing, completion
and productionof the Susan Dionne No. 2A development gas well
within 1,500 feet of a property line where the owner and landowner are
not the same on both sides of the line and within 3,000' of another well
that is, or may be capable of, producing from the same pool.
Susan Dionne No. 2A
Surface Location: 219' from the south line and 1,418' from the east line
of Section 6, Township 1 South, Range 13 West, Seward Meridian
is.M.).
Top of Productive Horizon Location: 1,393' from the south line and
2,049' from the east line of Section 6, Township 1 South, Range 13
West, S.M.
Bottom -hole Location: 2,339' from south line and 2,094' from west line
of Section 6, Township 1 South, Range 13 West, S.M.
The AOGCC has tentatively scheduled a public hearing on this
application for December 3, 2013 at 1:00 pm at 333 West 7th Avenue,
Suite 100, Anchorage, Alaska 99501. To request that the tentatively
scheduled hearing be held, a written request must be filed with the
AOGCC no later than 4:30 p.m. on November 13, 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 (907) 793-1221 after November 15, 2013.
In addition, written comments regarding this application may be
submitted to the Alaska oil and Gas Conservation Commission, at 333
West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments
must be received no later than 4:30 p.m. on November 29, 2013,
except that, if a hearing is held, comments must be received no later
than the conclusion of the December 3, 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 (907) 793-1221, no later than December 2,
2013.
AO-14-010
Published: October 28, 2013
Cathy P. Foerster
Chair, Commissioner
0
0
STATE OF ALASKA NOTICE TO PUBLISHER
ADVERTISING ORDER NO.
ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED A O� 1 �o� 0
ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF A 4
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
IAOGCC
R 333 West 71' Avenue. Suite 100
o Anchorage. AK 99501
M
o Anchorage Daily News
PO Box 149001
Anchorage, AK 99514
United states of America
State of
AGENCY CONTACT I DATE OF A.O.
PHONE IPCN
17V/1 /A-)-IiG1
DATES ADVERTISEMENT REQUIRED:
October 28, 2013
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
Account # STOF0330
AFFIDAVIT OF PUBLICATION
REMINDER
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
2013, and thereafter for consecutive days, the last publication appearing
on the day of , 2013, 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 2013,
Notary public for state of
My commission expires _
•
Singh, Angela K (DOA)
From:
Colombie, Jody J (DOA)
Sent:
Friday, October 25, 2013 3:58 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); Hunt, Jennifer L (DOA); Johnson, Elaine M (DOA); Jones, Jeffery
B (DOA); Laasch, Linda K (DOA); Bender, Makana 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);
Turkington, Jeff A (DOA); Wallace, Chris D (DOA);
(michaelj.nelson@ conocophi Ili ps.com); AKDCWellIntegrityCoordinator; Alexander
Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org;
Barron, William C (DNR); Bill Penrose; Bill Walker; Brian Havelock; Burdick, John D (DNR);
Cliff Posey; Colleen Miller; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; 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; Evans, John R (LDZX); Francis S. Sommer; Frank
Molli; schultz, gary (DNR sponsored); ghammons; Gordon Pospisil; Gorney, David L.;
Greg Duggin; Gregg Nady; gspfoff; Jacki Rose; Jdarlington Oarlington@gmail.com);
Jeanne McPherren; Jones, Jeffery B (DOA); Jerry McCutcheon; Jim White; Jim
Winegarner; Joe Lastufka; news@radiokenai.com; Easton, John R (DNR); John Garing;
Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek; Houle, Julie (DNR); Julie
Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Kiorpes, Steve T; Klippmann; Gregersen,
Laura S (DNR); Leslie Smith; Lisa Parker; Louisiana Cutler; Luke Keller; Marc Kovak;
Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P.
Worcester; Kremer, Marguerite C (DNR); Michael Jacobs; 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; Sandra Haggard; Sara Leverette; Scott Griffith; Shannon Donnelly; Sharmaine
Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR);
Smart Energy Universe; 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 (tmgrovier@stoel.com); Todd Durkee; Tony Hopfinger;
trmjrl; Vicki Irwin; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell;
Ajibola Adeyeye; Alan Dennis; Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey
Sullivan; David Lenig; David Martin; Perrin, Don J (DNR); Donna Vukich; Eric Lidji; Erik
Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Heusser, Heather A (DNR);
Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck;
jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; King, Kathleen J (DNR); Laney
Vazquez; Lois Epstein; Marc Kuck; Steele, Marie C (DNR); Matt Armstrong; Matt Gill;
Franger, James M (DNR); Bettis, Patricia K (DOA); Peter Contreras; Pollet, Jolie; Richard
Garrard; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR);
Pollard, Susan R (LAW); Talib Syed; Wayne Wooster, Woolf, Wendy C (DNR); William
Hutto; William Van Dyke
Subject:
Public Notices
Attachments:
Notice of Public Hearing CO-13-23.pdf; Notice of Public Hearing CO-13-24.pdf
•
•
Attached are Two Public Notices.
1. Hilcorp to amend CO 531 SD #2A
2. CIE Spacing Exception WMRU #8
Jody). Colombie
Special Assistant
Alaska Oil and Gas Conservation Commission
333 W. Th Avenue
Anchorage, Alaska 99S01
(907) 793-1221
(907) 276-7S42
casy reel- woeis i A Bend along line to i
Use Avery® Template 51600 Feed Paper expose Pop-up Edg*
AVElM) 596()TM ;
1
David W. Duffy
Landman
Hilcorp Alaska, LLC
Post Office Box 244027
Anchorage, AK 99524-4027
Cr_A�Z)'- c
ttiquettes faciles a paler ; A Repliez a la hachure afin de ; www.avery.com
Utilisez le gabarit AVERY® 51600 Sens de r6veler le rebord Po -u T^� '
� chargement P P � 1-800-GO-AVERY
Easy Pee!® Labels � i A i Bend aforig line t� i
Use Avery® Template 5166® feed Paper expose Pop-up Edge �
David McCaleb
Penny Vadla IHS Energy Group
399 W. Riverview Ave. GEPS
Soldotna, AK 99669-7714 5333 Westheimer, Ste.100
Houston, TX 77056
Jerry Hodgden
Hodgden Oil Company
408 18th 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
lack Hakkila
Post Office Box 190083
Anchorage, AK 99519
Richard Neahring
NRG Associates
President
Post Office Box 1555
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 99S08-4336
James Gibbs
Post Office Box 1597
Soldotna, AK 99669
ftiquettes faciles a peler� , - Repliez a to hachure afin de ; www.everl.com
Sons de
#2
•
•
Davies, Stephen F (DOA)
From:
David Duffy [dduffy@hilcorp.com]
Sent:
Monday, October 21, 2013 4:33 PM
To:
Davies, Stephen F (DOA)
Cc:
Janise Barrett
Subject:
RE: Spacing Exception Application: SD-2A sidetrack
Steve,
Per your email below:
• Surface: 219' FSL, 1418' FEL, Sec. 6, T1S, W, SM, AK
• Top of Productive Horizon: 1393' FSL, 2049 FEL, Sec 6, T1S, R13W, SM, AK
• Total Depth: 2339' FSL, 2094' FWL, Sec 6, T1S, R13W, SM, AK
David Duffy, Landman
Hilcorp Alaska, LLC
3800 Centerpoint Drive, Suite 100
Anchorage, Alaska 99503
Office: 907 777-8300
Direct: 907 777-8414
Fax: 907 777-8580
Cell: 907 301-2629
Email: dduffy@hilcorp.com
This email may contain confidential and/or privileged information
and is intended for the recipient(s) only. In the event you receive
this message in error, please notify me and delete the message.
From: Davies, Stephen F (DOA)[ma iIto: steve.daviesC)alaska.gov]
Sent: Monday, October 21, 2013 1:56 PM
To: David Duffy
Subject: RE: Spacing Exception Application: SD-2A sidetrack
David,
For the Susan Dionne #2A spacing exception public file, could Hilcorp please also provide metes and bounds coordinates
(footages from section lines) for the surface location, top of shallowest productive interval, and total depth for the
planned Susan Dionne #2A well? These coordinates are currently found only in the Susan Dionne #2A permit to drill
application and until that application is approved by the AOGCC, per 20 AAC 25.537, the coordinates cannot be released
to the public record (e.g., within a published / distributed Notice of Public Hearing).
Thank you,
Steve Davies
AOGCC
From: David Duffy [mailto:dduffy hilcorp.com]
Sent: Friday, October 18, 2013 9:09 AM
To: Davies, Stephen F (DOA)
Cc: David Buthman; Chris Kanyer
Subject: Spacing Exception Application: SD-2A sidetrack
9
•
Hi Steve,
Please see attached spacing exception application for SD-2A. The original will be sent via mail (with copy of certified
mail receipts). Please call David Buthman (907.777.8375) with any technical questions, or me for land/property issues.
Best regards,
David Duffy, Landman
Hilcorp Alaska, LLC
3800 Centerpoint Drive, Suite 100
Anchorage, Alaska 99503
Office: 907 777-8300
Direct: 907 777-8414
Fax: 907 777-8580
Cell: 907 301-2629
Email: dduffy@hilcorp.com
This email may contain confidential and/or privileged information
and is intended for the recipient(s) only. In the event you receive
this message in error, please notify me and delete the message.
Colombie, Jody J (DOA)
From: Colombie, Jody J (DOA)
Sent: Tuesday, November 19, 2013 8:05 AM
To: 'David Duffy'
Subject: RE: hearing status: docket CO-13-023
Hearing is VACATED.
JodyJ. Colombie
Special Assistant
Alaska Oil and Gas Conservation Commission
333 W. Th Avenue
Anchorage, Alaska 99501
(907) 793-1221
(907) 276-7542
From: David Duffy [mailto:dduffy(ahilcorp.com]
Sent: Friday, November 15, 2013 8:33 AM
To: Colombie, Jody J (DOA)
Cc: David Buthman; Chris Kanyer
Subject: hearing status: docket CO-13-023
Morning, Jody.
Please advise if any written requests were filed by the November 13 deadline regarding Hilcorp's application to amend
CO 531, and if not,, whether the tentatively scheduled December 3 hearing (1:00 pm) will be vacated.
Thank you,
David Duffy, Landman
Hilcorp Alaska, LLC
3800 Centerpoint Drive, Suite 100
Anchorage, Alaska 99503
Office: 907 777-8300
Direct: 907 777-8,414
Fax: 907 777-8580
Cell: 907 301-2629
Email: dduffv@hilcorp.com
This email may contain confidential and/or privileged information
and is intended for the recipient(s) only. In the event you receive
this message in error, please notify me and delete the message.
1
#1
RECEIVED
OCT 2 2 2013
� ►A %O
October 17, 2013
Hilcorp Alaska, LLC
Cathy Foerster, Chair
Alaska Oil and Gas Conservation Commission
333 West 7th Avenue, Suite 100
Anchorage, Alaska 99501
Post Office Box 244027
Anchorage, AK 99524-4027
3800 Centerpoint Drive
Suite 100
Anchorage, AK 99503
Phone:907/777-8300
Fax:907/777-8301
RE: Application to Amend Conservation Order 531 to allow for sidetrack drilling,
testing, completion and production of the Susan Dionne No. 2A from the
Undefined Beluga Pool within the Ninilchik Unit
Dear Commissioner Foerster,
On August 24, 2004, the Alaska Oil and Gas Conservation Commission ("AOGCC")
issued Conservation Order 531 granting an exception to the well spacing requirements of
20 AAC 25.055(a) to allow the drilling and production of Susan Dionne #2 within 1500
feet of a property line where ownership changes, and within 3000' and the same pool as
another well.
Former Unit Operator, Marathon Oil Company ("Marathon") then drilled and completed
SD-2 in 2004. Several Tyonek zones produced for short periods, but the well did not
deliver on its potential.
In early 2013, Hilcorp Alaska, LLC ("Hilcorp"), as successor Operator of the Ninilchik
Unit, abandoned the zones below 6700' with a through -tubing bridge plug but was
unsuccessful at returning the well to production following a rig workover. Hilcorp now
proposes to plug and abandon the open perforations, followed by sidetracking with a
drilling rig, testing, completion and production of the Undefined Beluga Pool.
To date, no special Pool Rules have been established within the Ninilchik Unit, and all
gas produced been reported as either "SD Tyonek Undefined" (Field Pool Code 562560)
or "SD Beluga Undefined" (Field Pool Code 562550). Therefore, statewide spacing
regulations are controlling.
In relevant part, 20 AAC 25.055(a) provides:
(2) for a well drilling for gas, a wellbore may be open to test or regular
production within 1,500 feet of a property line only if the owner is
the same and the landowner is the same on both sides of the line.
(4) if gas has been discovered, the drilling unit for the pool is a
governmental section; not more than one well may be drilled to
9
Ninilchik Unit
Application to Amend CO 531
October 17, 2013
Page 2 of 7
and completed in that pool on any governmental section; a well
may not be drilled or completed closer than 3,000 feet to any well
drilling to or capable of producing from the same pool.
The location of SD-2A and its relationship to adjoining properties and wells is depicted
in Exhibit A. As demonstrated by the plat:
• Hilcorp is the only "operator" within the affected area.
• Hilcorp is the "owner" of all the leases shown within 1500' of the
proposed Top of Productive Horizon (TPI);1 all said leases are
contained within the Ninilchik Unit;2 none are segmented with
respect to depth.
• The distance to the nearest point where "landownership" changes
is —965' from the proposed TPI.3 However, Hilcorp is the surface
estate owner of the affected parcel (KPB Parcel Id. 15701073),
which also serves as the Surface Hole Location (SHL) of the well.
• The next closest point where "landownership" changes is
approximately 1381' from the proposed TPI. The subsurface of
the affected parcel is leased to Hilcorp Alaska (Ninilchik Unit
Tract 144) and the private lessor also owns the surface estate.
• The nearest well (SD-7) open to the Undefined Beluga Pool is
located 2,914' to the south. See Exhibit B (Confidential).
Based on confidential geological and engineering data available to Hilcorp, it is
apparent that the Beluga sandstones particularly discontinuous and unpredictable, that
they drain small areas as small as —40 to 60 acres, with the majority of Beluga sands
drain less than 180 acres or—1,575ft radius), and that the proposed development of SD-
2A is necessary to maximize recovery of gas from the Undefined Beluga Pool.
Hilcorp owns a 100% working interest in the Ninilchik Unit. At the date of this
mailing, a copy of this proposed amendment was sent by certified mail to the all affected
owners, landowners and operators. Also enclosed is an affidavit stating the undersigned
is acquainted with the facts and verifying that all facts asserted herein are true.
If the proposed well completion is successful, and produces gas from the Beluga
formation in commercial quantities, Hilcorp anticipates expanding the existing Susan
' Per AS 31.05.170(10), "owner" means the person who has the right to drill into and produce from a pool
and to appropriate the oil and gas the person produces from a pool for that person and others.
2 The affected properties within 1500' of the proposed include Ninilchik Unit Tracts 10, 30, 144 and 145.
3 Per AS 31.05.170(7) "landowner" means the owner of the subsurface estate of the tract affected.
•
•
Ninilchik Unit
Application to Amend CO 531
October 17, 2013
Page 3 of 7
Dionne Paxton Participating Area and submitting proposed Pool Rules to formally
define both the Tyonek and Beluga formations.
As demonstrated above, the correlative rights of all affected owners, landowners and
operators will be protected by the proposed amendment to Conservation Order 531 to
allow SD-2A to be completed within the Beluga Formation.
If you have any questions regarding this request, please contact Mr. David Buthman,
Senior Geologist, at 777-8395, or you may contact the undersigned at 777-8414.
Sincerely,
David W. Duffy, Landman
Hilcorp Alaska, LLC
Enclosures: Exhibit A, Exhibit B (confidential submittal to AOGCC), Affidavit, Copy of
Certified Mail Receipts
CC: Affected Owners, Landowners and Operators
Ninilchik Unit Tract 10
State of Alaska
Dept. of Natural Resources
Division of Oil and Gas
550 West 7th Avenue, Suite 1100
Anchorage, AK 99501-3560
Ninilchik Unit Tracts 142 1145 1146
Paul and Susan Dionne
P.O. Box 39597
Ninilchik AK 99639
Ninilchik Unit Tract 147
Paul Joseph Rochon
Box 202
Kasilof AK 99610
Ninilchik Unit Tract 30
J Cook Inlet Region, Inc.
CIRI Land and Resources Dept.
2525 C Street, Suite 500
Anchorage, AK 99503
Ninilchik Unit Tract 144
Bea and Andrew Bachner
P.O. Box 81205
Fairbanks AK 99708
Ninilchik Unit Tract 147
Linda Marie McCool
P.O. Box 4206
Soldotna AK 99669
Ninilchik Unit Tract 147 Ninilchik Unit Tract 135
Ward Randall Grilley Wayne and Irene Findley
P.O. Box 1834 504 S Division St.
Solodtna AK 99669 Stuart, IA 50250
•
0
Ninilchik Unit
Application to Amend CO 531
October 17, 2013
Page 4 of 7
Ninilchik Unit Tract 141
Evelyn Terry McLaughlin
Patricia Terry Lodge
Lila Terry Hanson
c/o Peter Walton
330 L. Street
Anchorage, Alaska 99501
Ninilchik Unit Tract 157
Henry George Gain & Flora Eugenia Gain
204 Seco Drive
Portland, TX 78374
L
Ninilchik Unit
Application to Amend CO 531
October 17, 2013
Page 5 of 7
EXHIBIT A
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Susan Dionne 2A (SD-? A� a
Tap of Production Hm zzon (Tf%r1
NINILCHIK UNI-P. Tract 10 %% r
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• Distance to neatest Pam Susan Dionne 2A
• where Changes = "Iandotvnrt 965' Surfice Hole Location
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Susan Dionne 7
.o Beluga 45 Perforations
-1914 ft. frame SD-2A TPH ,
ft � A • f . . . .
` 3000 it buffer frown SD 2A TPH
` � 1500 ft radius buffer from •SD-2A TPH
Exhibit A
Ninilchik Unit: Susan Dionne 2A
Spacing Exception Application
I +1 1 /t
Legend a 2A :+HL
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vjsar DWne 2A BHL
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Map Date: 1 V1612013 A
•
•
Exhibit B
Held Confidential in Secure Storage
Ninilchik Unit
Application to Amend CO 531
October 17, 2013
Page 7 of 7
VERIFIATION OF APPLICATION FOR SPACING EXCEPTION
COOK INLET ALASKA
NINILCHIK UNIT, SUSAN DIONNE-PAXTON PARTICIPATING AREA
Well SD-2A
I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following:
I am acquainted with Hilcorp Alaska, LLC's Application For Sundry Approval
submitted October 11, 2013; correspondence with AOGCC staff regarding
spacing requirements related to said work, the Susan Dionne -Paxton Participating
Area; and Conservation Order 531
I assert all facts outlined in the above -referenced application for amendment of
Conservation Order 531 are true.
I have reviewed the plats attached herein as Exhibits A and B (marked as
confidential), and each correctly portrays the pertinent and required data for the
AOGCC to take action on this request.
H
DATED at Anchorage, Alaska this j day of October 2013.
David W. Duffy, Landman
Hilcorp Alaska, LLC
STATE OF ALAKSA )
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THIRD JUDICIAL DISTRICT )
SUBSCRIBED TO AND SWORN before me this L h day of October, 2013
STATE OF ALASKA' mk
NOTARY PUBLIC N ARY PUBLIC IN AND FOR
Zelma M. Clarke T E STATE OF ALSKA
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Wayne and Irene Findley
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