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Home My WebLink AboutCO 683Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase.. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. C-o Order File Identifier Organizing (done) RESCAN ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: Two-sided uuuuouiiiuu DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: asvnNeeded iiiuuiiuiuiui OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: NOTES: �2 ❑ Other:: BY: Angela Date: 14\3 1� /s/ C� Project Proofing II I II II II I I III I I III 1 g BY: Angela Date: 2/ /s/^ Scanning Preparation x 30 = + = TOTAL PAGES \02 (Count does not include cover sheet) BY: Angela `� Date: 2JOS(2m k`-' /s/ Production Scanning Stage 1 Page Count from Scanned File: \ y_�_) (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ✓ YES NO BY: Angela Date:/s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: /s/ Scanning complete lete at this point unless rescanning is required. II I II II II I II II I I III P ReScanned III IIIIIIIIIII IIIII BY: Angela Date: /s/ Comments about this file: Quality Checked 1111111111111111111 INDEX CONSERVATION ORDER NO. 683 Susan Dionne No. 8 Development Gas Well Ninilchik Field Ninilchik Unit Ninilchik, Susan Dionne Beluga Undefined Gas Pool 1.-------------------- Superseded packet containing Hilcorp Alaska, LLC's (HAK) October 23, 2013 application for administrative approval to allow testing, completion and production of the Susan Dionne No. 8 well, and the November 14, 2013 Notice of Public Hearing, affidavit of publication, email distribution, and mailings. Confidential exhibits held in secure storage. 2.-------------------- Emails regarding SD-8 Spacing Exception — Legals 3. November 21, 2013 HAK's updated application for administrative approval to allow testing, completion and production of the Susan Dionne No. 8 well. Confidential exhibits held in secure storage. 4. November 25, 2013 Notice of Public Hearing, affidavit of publication, email distribution, and mailings. 5.-------------------- Emails regarding Hilcorp Paxton Well 6.-------------------- Emails regarding Spacing Exception Application. Susan Dionne No. 8 INDEX CONSERVATION ORDER NO. 683 0 E 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 for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Susan Dionne No. 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. BY THE COMMISSION: Docket Number: CO- 13-25 Conservation Order No. 683 Susan Dionne No. 8 Development Gas Well Ninilchik Field Ninilchik Unit Ninilchik, Susan Dionne Beluga Undefined Gas Pool Kenai Peninsula Borough, Alaska January 14, 2014 NOTICE CLOSING DOCKET The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 14th day of January, 2014. BY DIRECTION OF THE COMMISSION Q� (4t' J d J. Colombie S e ial Assistant to the Commission 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 for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Susan Dionne No. 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO- 13-25 Conservation Order No. 683 Susan Dionne No. 8 Development Gas Well Ninilchik Field Ninilchik Unit Ninilchik, Susan Dionne Beluga Undefined Gas Pool Kenai Peninsula Borough, Alaska January 14, 2014 1. By letter received October 25, 2013 and by letter of correction received November 21, 2013, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order authorizing Hilcorp to test and produce development gas well Susan Dionne No. 8 within 1500' of a property line where the owner and landowner are not the same on both sides of the line; and where the well is within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for January 2, 2014. On November 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 November 25, 2013, the AOGCC mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On November 26, 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 No. 8 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 December 27, 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 683 • • January 14, 2014 Page 2 of 3 FINDINGS: 1. Hilcorp is the owner and operator of the Ninilchik Field, the Ninilchik Unit, and the proposed Susan Dionne No. 8 development gas well, which are located in the Kenai Peninsula Borough, Alaska. 2. Susan Dionne No 8 has an onshore surface location 243' from the north line and 2629' from the east line of Section 6, T1S, R13W, Seward Meridian (S.M.). The offshore bottom -hole location for Susan Dionne No. 8 is 792' from the north line and 2051' from the west line of Section 7, T1S, R13W, S.M. 3. The surface location of Susan Dionne No. 8 is situated on privately held property. The wellbore passes through Cook Inlet Region, Inc. property, State of Alaska lease ADL- 359242, and reaches total depth in State of Alaska lease ADL-384372. 4. Susan Dionne No. 8 was drilled as an exploratory well from July to September 2013. After reaching a total measured depth of 12,130', open -hole logs and short-term drill stem tests were conducted in deep, exploratory target formations. These tests were unsuccessful. 5. As originally drilled, Susan Dionne No. 8 did not require exceptions to spacing requirements for drilling and testing due to the location of the target formations. 6. Hilcorp now proposes to test and complete Susan Dionne No. 8 as a development gas well in shallower reservoir sandstone beds within the Susan Dionne Beluga Undefined Gas Pool (SD Beluga Undefined Gas Pool) and the Susan Dionne Tyonek Undefined Gas Pool (SD Tyonek Undefined Gas Pool). A spacing exception is now required because Susan Dionne No 8 will open these gas pools within 1500' of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. 7. The Susan Dionne No. 8 will access gas reserves that are not accessible to other wells because Beluga and Tyonek sandstone reservoirs are lenticular and discontinuous. Wells producing from the SD Beluga Undefined and the SD Tyonek Undefined Gas Pools in this area drain areas less than 180 acres in size. 8. On October 23, 2013, Hilcorp sent the application for exception by certified mail to all affected owners, landowners, and operators—i.e., State of Alaska, Cook Inlet Region, Inc., and 16 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. 9. The AOGCC received no comments, objections, or protests in response to the public notice regarding the proposed Susan Dionne No. 8 well or to the notification sent by Hilcorp to all affected owners, landowners, and operators within 3,000' of Susan Dionne No. 8. CONCLUSIONS: Conservation Order 683 • • January 14, 2014 Page 3 of 3 1. Susan Dionne No. 8 will recover reserves that are not accessible to existing development gas wells. 2. Statewide regulations 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) govern spacing for the Susan Dionne No. 8. 3. The AOGCC considers Hilcorp's October 25, 2013 and November 21, 2013 letters 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 testing, completion, and production of the Susan Dionne No 8 development gas 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 No. 8 development gas 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 application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to allow testing, completion, and production of the Susan Dionne No. 8 development gas well within the Ninilchik, Susan Dionne Beluga Undefined Gas Pool and Susan Dionne Tyonek 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 January 14, 2014. Cathy V. Fo rster 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. 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 aweekend or state holiday. • E Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, January 15, 2014 2:59 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); AKDCWellIntegrityCoordinator; Alexander Bridge; Andrew Vanderlack; 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; jilt.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 0 Subject: CO 683 (SpacingException Susan Dionne #8) AM 684 (Spacing Exception Sword #1) Both located i Kenai Peninsula Attachments: co684.pdf; co683.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West Th Avenue Anchorage, Alaska 99501 Jodu. Colombie(a'a,laska. aov Office: (907) 793-1221 Fax: (907) 276-7542 • David W. Duffy Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 V5Na-C _� �4 0 0 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 NRG Associates Halliburton Hodgden Oil Company m President 6900 Arctic Blvd. 40818 St. Post Office Box 1655 Golden, CO 80401-2433 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K&K Recycling Inc. Land Department 795 E. 94m Ct. Post Office Box 58055 Post Office Box 93330 Anchorage, AK 99515-4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department Post Office Box 60868 3201 Westmar Cir. Post Office Box 69 Fairbanks, AK 99706 Anchorage, AK 99508-4336 Barrow, AK 99723 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 #6 Davies, Stephen F (DOA) From: David Duffy [dduffy@hilcorp.com] Sent: Thursday, December 26, 2013 2:27 PM To: Davies, Stephen F (DOA) Subject: RE: Spacing Exception Application: Susan Dionne No. 8 Attachments: Document. pdf Steve, An electronic copy of the certified mailing receipt for Henry George Gain and Flora Eugenia Gain is attached. 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: 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. From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, December 26, 2013 2:17 PM To: David Duffy Subject: RE: Spacing Exception Application: Susan Dionne No. 8 As follow-up to our telephone conversation of this afternoon, AOGCC still lacks the Certified Mail Receipt for Henry George Gain and Flora Eugenia Gain to complete the spacing exception application for Susan Dionne 8. The hearing is scheduled for Jan. 2nd. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Friday, December 20, 2013 3:22 PM To: 'David Duffy' Subject: Spacing Exception Application: Susan Dionne No. 8 David, 1 • 0 I'm reviewing Hilcorp's spacing exception application package for Susan Dionne No. 8, and I noticed that the application received November 21, 2013 includes Certified Mail Receipts for all of the affected parties except for Henry George Gain and Flora Eugenia Gain. Could you please provide a photocopy of that receipt with the postmark? Thanks and Happy Holidays, Steve Davies AOGCC 907-793-1224 CO r1i ru CO cc ru nj in m C3 1= C3 C3 r--3 r7l r4 r-q to r1j ru ToW Postage & Poe" 1, $ 1/1 -42 O-b- Henry George Gain & Flora Eugenia Gain rm m 77171— 204 Seco Drive C3 n Portland, TX 78374 or PC ft. U.S. Postal Service,,,� CERTIFIED MAIL-,,, RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) OFFICiAL USI ror'tt s A 3A CpTlifWd F" 3 Her. Restricted Dot". ran (Endommont qoquirod) #5 0 Colombie, Jody J (DOA) From: Foerster, Catherine P (DOA) Sent: Friday, December 20, 2013 10:18 AM To: Colombie, Jody J (DOA); Ballantine, Tab A (LAW) Cc: Bettis, Patricia K (DOA); Davies, Stephen F (DOA); Seamount, Dan T (DOA) Subject: FW: Hilcorp Paxton Well Follow Up Flag: Flag Status: Categories: Follow up Flagged Purple Category FYI I think she meant "aren't in the scope" but in any case I think she understands. As we discussed, let's send hearing notice to all affected parties until such time as we can get the regs changed to require the operator to inform affected parties of the opportunity for hearing. And we won't consider the spacing application complete (nor will we schedule the hearing) without the list of addresses. From: Tricia Waggoner[ma iIto: triciawag_coner(a�hotmaiLcom] Sent: Friday, December 20, 2013 10:13 AM To: Foerster, Catherine P (DOA) Subject: RE: Hilcorp Paxton Well Dear Ms. Foerster, I appreciate your response. Having retired from the permitting and public involvement field, I was surprised to see that AOGCC didn't notify nearby landowners of public meetings. While I realize that noise issues are in the scope of the AOGCC, I feel it would have been an opportunity to address this noise issue earlier in the process. As for a resident on the Kenai Peninsula, I don't read the ADN or the Journal of Commerce on a regular basis. It is my feeling that the applicant could provide notification of the public meeting in their mailing, or they could provide AOGCC with a list of property owners to be added to AOGCC's mailing list. Again I appreciate your responsiveness and I hope that you had an enjoyable time with you mother. Thanks again and happy holidays. Tricia Waggoner From: cathy.foerstergalaska.gov To: triciawaggonerghotm ail. com Subject: RE: Hilcorp Paxton Well Date: Fri, 20 Dec 2013 18:30:00 +0000 Ms. Waggoner, Now that I have returned to Alaska, I have had an opportunity to review the file regarding the Hilcorp well spacing exception granted for the Paxton well. Generally speaking, publication in a newspaper of general circulation such as the Anchorage Daily News or the Alaska Journal of Commerce is deemed notice to the public. However, as a result of the concerns you express, the Commission will undertake a review of its notice requirements to see if those requirements should be amended. With regard to the specifics of your concerns (i.e., the noise issues), when the AOGCC makes a determination as to whether to grant or deny a spacing exception, the commission has not historically considered noise issues as a basis for its grant or denial of a spacing exception. More simply put, a request for a well spacing exception typically encompasses issues of petroleum geology and petroleum engineering. Please feel free to contact me if you have additional questions. I hope your visit with your mom was as much fun as mine was with mine. Cathy Foerster Chair, Alaska Oil and Gas Conservation Commission From: Tricia Waggoner[mailto:triciawaggoner@hotmail.com] Sent: Monday, December 16, 2013 8:22 AM To: Foerster, Catherine P (DOA) Subject: Hilcorp Paxton Well Dear Ms. Foerster I am writing in regards to the Hilcorp Paxton well in Ninilchik. As an adjacent landowner within 1500', 1 received notice of the drilling in May 2013. 1 have been in discussion with Hilcorp regarding some noise issues from the site. At this time, Hilcorp has indicated they are trying to address the issue. In reviewing AOGCC files regarding this site, I read the following in AOGCC's decision: A public hearing was scheduled for July 16, 2013. On May 30, 2013, the AOGCC mailed copies of the Notice of Public Hearing to all persons on the AOGCC's mailing distribution list, published notice of 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 June 9, 2013, the notice was published in the ALASKA JOURNAL OF COMMERCE. As an adjacent landowner I did not receive any information regarding a public hearing. I have attached a copy of the mailing which I received from Hilcorp. I did not receive anything from AOGCC. Shouldn't the adjacent landowners be on AOGCC's mailing list? If we had been informed that we had an opportunity to comment we may have been able to avoid the current noise issues that we have with the site. I would like to say that • Hilcorp has been responsive to our concerns so far and I hope that this continues in the future. I would appreciate your looking into this matter of not informing the adjacent landowners of an opportunity to comment on the proposed action. Sincerely, Patricia Waggoner 907-982-5311 #4 a 7STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER 'mwADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ORDER NO. A O-�4�oA C M 1 J SEE BOTTOM FOR INVOICE ADDRESS F R 0 M AOGCC 333 W 7th Ave, Ste 100 Anchorage, AK 99501 AGENCY CONTACT Jodv Colombie DATE OF A.O. November 25, 2013 PHONE 907 793 —1221 PION DATES ADVERTISEMENT REQUIRED: November 26, 2013 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. o Anchorage Daily News POBe AK 99S 14 Box 149001 Anchorage, 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 12PAGES TOTAL OF ALL PAGES $ REF TYPE I NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARIA 1 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST DO 1 2 REQU ITION BY: i DIVISION APPROVAL: 02-902 'Vev.1'/94) Publisher/Original Copies: Department Fiscal, Department, Receiving A0 RM ,7 • Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-13-25. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Susan Dionne No. 8 (Susan Dionne 8) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. Hilcorp, by letter received October 25, 2013 and by letter of correction received November 21, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order to test and produce development gas well Susan Dionne 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. Susan Dionne 8 Surface Location: 243' from the north line and 2629' from the east line of Section 6, T1S, R13W, Seward Meridian (S.M.) Top of Productive Interval Locations: 135' from the south line and 2105' from the east line of Section 6, T1S, R13W, S.M. and 242' from the north line and 1548' from the west line of Section 7, T1S, R13W, S.M. Bottom -hole Location: 792' from the north line and 205 F from the west line of Section 7, TIS, R13 W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 2, 2014, at 9:00 a.m. at 333 W. 7"' Ave., Ste 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 December 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 793-1221 after December 17, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7"' Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 27, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the January 2, 2014 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 December 30, 2013. Cat y P. oerste4U r Chair, mmissioner 270227 RECEIVED 0000792518 $ 293.82 DEC 0 2 2013 AOGCC 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 November 26, 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. Subscribed and sworn to before me this 26th day of November, 2013 : t k",Xrw Notary ublic in and for��°�� The State of Alaska. Third Division Is -A ii+ fir'••' 201a Anchorage, Alaska �;.s,c •�•.,.. >.••• MY COMMISSION EXPIRES Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-13-25. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Susan Dionne No. 8 (Susan Dionne 8) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line andwithin the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. Hilcorp, by letter received October25, 2013 and by letter of correction received November 21, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order to test and produce development gas well Susan Dionne 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. Susan Dionne8 Surface Location: 243' from the north line and 2629' from the east line of Section 6, T1S, R13W, Seward Meridian (S.M.) Top of Productive Interval Locations: 135' from the south line and 2105' from the east line of Section 6, T1S, R13W, S.M. and 242' from the north line and 1548' from the west line of Section 7, T1S, R13W, S.M. Bottom -hole Location: 792' from the north line and 2051' from the west line of Section 7, T1S, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application forJanuary 2, 2014, at 9:00a.m. at 333 W. 7th Ave., Ste 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 December 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 793-1221 after December 17, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 27, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the January 2, 2014 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 December 30, 2013. AO-14-015 Published: November 26, 2013 Cathy P. Foerster Chair. Commissioner • STATE OF ALASKA ADVERTISING ORDER TOM FOR INVOICE ADDRESS NOTICE TO PUBLISHER ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� A _015 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO_14 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOGCC 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 PCN (907) 793 -1221 DATES ADVERTISEMENT REQUIRED: November 26, 2013 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account 9 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: Monday, November 25, 2013 10:53 AM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); 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); AKDCWelllntegrityCoordinator; 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; 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; 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 Martin; Perrin, Don J (DNR); Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr; Smith, Graham 0 (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; Pol►et, 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 0 9 Subject: Public Hearing Notice Susan Dionne #8 (Hilcorp Alaska) Attachments: Notice of Public Hearing Susan Dionne #8.pdf Jody J. Colombie AOGCC Special Staff Alaska Oil and Gas Conservation Commission 333 West Th Avenue Anchorage, Alaska 99501 jodg. colombie(Waska. qov Office: (907) 793-1221 Fax: (907) 276-7542 Easy PeelO Labels i ♦ ® Bend along line to Use AveryO Template 51600 Feed Paper expose Pop-up EdgeT"' Mr. David W. Duffy Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 Etiquettes faciles a peler ; 0 Rep a la hachure afin de ; www.averycom Utilisez le gabarit AVERYO 51600 i Sens de reveler le rebord Pop-u TM ' 1-800-GO-AVERY Easy peel® Labels � d Send aforg line to Use Avery@ Template 51600 Feed Paper expose Pop-up Edger" David McCaleb Penny Vadla IHS Energy Group 399 W. Riverview Ave. GEPS Soldotna, AK 99669-7714 5333 Westheimer, Ste.100 Houston, TX 77OS6 Jerry Hodgden Hodgden Oil Company 40818`° 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 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 Marl: Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker oil Tools 795 E. 94' Ct. Anchorage, AK 99S1S4295 Gordon Severson 3201 Westmar Or. Anchorage, AK 99S08-4336 James Gibbs Post Office Box 1597 Soldotna, AK 99669 kicluenes ladles a peter _ i s r,rp Renliez a is haehure of in cle ; v+.rwuwavery corn °s #3 E:1 Hilcorp Alaska, LLC November 21, 2013 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone:907/777-8300 Fax:907/777-8301 Steve Davies RECEIVED Alaska Oil and Gas Conservation Commission NOV 21 2013 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 AOGCC RE: Updated application to allow for testing, completion and production of the Susan Dionne No. 8 Well from the Undefined Tyonek and Beluga Pools within the Ninilchik Unit. Dear Steve, On October 23, 2013, Hilcorp Alaska, LLC ("Hilcorp") submitted a spacing exception application for the Susan Dionne No. 8 Well ("SD-8"). On page 1, our application contained a typographical error regarding the location of the well. PLEASE NOTE: the correct legal description of the project is as follows: Surface: 243' FNL, 2629 FEL, Section 6, TIS, R13W, SM, AK. Top of Productive Horizon: o Tyonek: 242' FNL, 1548' FWL, Section 7, T1S, R13W, SM, AK. o Beluga: 135' FSL, 2105' FEL, Section 6, T1S, R13W, SM, AK. Total Depth: 792' FNL, 2051' FWL, Section 7, T1S, R13W, SM, AK. A corrected copy of Hilcorp's October 23, 2013 spacing exception application was sent to all affected landowners by certified mail. This second mailing was accompanied by a Notice of Corrected Legal Description. Also attached is an updated affidavit and copies of the certified mailing receipts. If an updated hearing notice is required, Hilcorp respectfully requests the AOGCC keep the tentative date of December 17, 2013 on the calendar and extend the period to submit a written hearing request to December 10, 2013. All affected landowners have received adequate notice of the correction, and any other delay may significantly prejudice Hilcorp's ability to timely commence production of this well. If you have any questions, please contact me at 907-777-8414. Regards, David W. Duffy Hilcorp Alaska, LLC • • VERIFICATION OF CORRECTED APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA NINILCHIK UNIT, SUSAN DIONNE-PAXTON PARTICIPATING AREA Well SD-8 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's proposal to complete Susan Dionne No. 8 as a gas well within the Susan Dionne Participating Area of the Ninilchik Unit, applicable regulations, and sundries approved by the AOGCC to date. On October 23, 2013, Hilcorp submitted a spacing exception application for the Susan Dionne No. 8 well. This application included a typographic error regarding the legal description of the subject well. On November 21, 2013, Hilcorp sent a corrected copy to all affected landowners. I assert all facts outlined in the above -referenced application for a spacing exception are true. I have reviewed the plats attached herein as Exhibits Al, A2 and B (marked as confidential), and each correctly portrays the pertinent and required data for the AOGCC to take action on this request. DATED at Anchorage, Alaska this 21 St day of November 2013. % c✓ David W. Duffy, L dman Hilcorp Alaska, LLC STATE OF ALAKSA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this 21St day of November 2013 STATE OF ALASKA �, NOTARY PUBLIC Judith A. Stanek N6tARY PUBLIC IN AND FOR My Commission Spires Feb 14, 2014 THE STATE OF ALSKA My Commission expires:—/ —� CJ L Hilcorp Alaska, LLC November 21, 2013 NOTICE OF CORRECTED LEGAL DESCRIPTION Susan Dionne No. 8 Well Dear landowner: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone:907/777-8300 Fax: 907/777-8301 RECEIVED NOV 212013 AOGCC Hilcorp Alaska, LLC ("Hilcorp") recently sent you a certified letter regarding our October 23, 2013 application to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a spacing exception for the Susan Dionne No. 8 well. This well was drilled from our Susan Dionne pad, located at approximately Mile Post 19 of the Sterling Highway, near Ninilchik, Alaska. PLEASE NOTE: the correct legal description of the project is as follows: • Surface: 243' FNL, 2629 FEL, Section 6, TIS, R13W, SM, AK. • Top of Productive Horizon: o Tyonek: 242' FNL, 1548' FWL, Section 7, T1S, R13W, SM, AK. o Beluga: 135' FSL, 2105' FEL, Section 6, T1S, R13W, SM, AK. • Total Depth: 792' FNL, 2051' FWL, Section 7, T1S, R13W, SM, AK. A corrected copy of Hilcorp's October 23, 2013 application is attached. Hilcorp has requested the AOGCC to keep the tentative hearing date of December 17, 2013 on the calendar. If you have any questions, please contact me at 907-777-8414. You may also contact the AOGCC at 907-797-1221. Regards, David W. Duffy Hilcorp Alaska, LLC Hilcorp Alaska, LLC October 23, 2013 Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7`h 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 allow for testing, completion and production of the Susan Dionne No. 8 from the Undefined Tyonek and Beluga Pools within the Ninilchik Unit Dear Commissioner Foerster, On April 11, 2013, Hilcorp Alaska, LLC ("Hilcorp"), as Operator of the Ninilchik Unit, submitted an application for a Permit to Drill the Susan Dionne No. 8 ("SD-8") exploratory oil well. The AOGCC approved said application on April 25, 2013. On June 18, 2013, Hilcorp proposed minor changes to the drilling program. These modifications were approved on June 28, 2013. The drilling of SD-8 commenced on in July 2013 with the Saxon 147 drill rig. After reaching a total depth of 12,130 and completion of open -hole wireline logging in early September, the AOGCC granted approval for short term drill stem tests of proposed exploratory oil zones. These tests proved unsuccessful. Hilcorp now proposes to test and complete SD-8 as a developmental gas well from the Undefined Tyonek and Beluga Pools. The location of the well is as follows: • Surface: 243' FNL, 2629 FEL, Section 6, . IN -Wiz , SM, AK. • Top of Productive Horizon: o Tyonek: 242' FNL, 1548' FWL, Section 7, TT,*Tz— N,, Dtc12 , SM, AK. CORRECTION: All references o Beluga: 135' FSI,, 2105' FEL, Section 6 TIN, R12 �, SM, AK. • Total De the 792' FNL 2051' FWL, Section 7 TIN, SM, AK. be N, R12", shoo uld p be 71 S, R13W." The SD-8 well design includes dual string with packer isolation to segregate Undefined Tyonek Pool from the Undefined Beluga Pool. This design is warranted to develop gas appropriately with respect to reservoir pressure differences because it precludes cross flow and down -hole commingling issues. Moreover, this design allows for appropriate allocation and reporting of production from each respective 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: C: 0 Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 2 of 9 (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 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-8 and its relationship to adjoining properties and wells is depicted in Exhibit Al and A2. As demonstrated by Exhibit Al (Tyonek 140): • Hilcorp is the only owner and operator within the affected area. • The affected "landowners" within 1500' of the proposed Tyonek perforations include Ninilchik Unit Tract Nos. 10, 30, and 145.2 All such tracts are contained within the Susan Dionne -Paxton Participating area (applicable only to the Undefined Tyonek Pool). None are segmented with respect to depth. • The distance to the nearest point where landownership changes is —710' from the proposed Tyonek 140 Top of Productive Horizon. • There are no other wells open to the Undefined Tyonek Pool within Section 7, Township 1 South, Range 13 West, Seward Meridian, Alaska. See Exhibit B (Confidential). • There are no other wells capable of producing from the Undefined Tyonek Pool within 3000' of the proposed SD-8 Tyonek 140 perforations. See Exhibit B (Confidential). As demonstrated by Exhibit A2 (Beluga 135): • I filcorp is the only owner and operator within the affected area. The affected "landowners" within 1500' of the proposed Beluga perforations include Ninilchik Unit "tract Nos. 10, 30, 145 and 146. All tracts are contained within, but vertically above the Susan Dionne -Paxton Participating area (not applicable to the Undefined Beluga Pool). None are segmented with respect to depth. ' 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 Per AS 31.05.170(7) "landowner" means the owner of the subsurface estate of the tract affected. • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 3 of 9 • The distance to the nearest point where landownership changes is —55' from the proposed Tyonek 140 Top of Productive Horizon. • Other wells capable of producing from the Undefined Beluga Pool within Section 6, Township 1 South, Range 13 West, Seward Meridian, Alaska include SD-1, SD-2A (proposed), and SD-4. Other wells capable of producing within 3000' of the proposed SD-8 Beluga 135 perforation include: SD-5 (located 2816' to the south) and SD-6 (located 2898' to the west). See Exhibit B (Confidential). Based on confidential geological and engineering data available to Hilcorp, it is apparent that the Tyonek and Beluga formations arc particularly discontinuous and unpredictable, that they drain small areas (the majority of sands drain less than 180 acres or—1,575' radius), and the proposed development of SD-8 is necessary to maximize recovery of gas from the Undefined Tyonek and Beluga Pools.3 Hilcorp owns a 100% working interest in the Ninilchik Unit and is the only operator within the affected area. At the date of this mailing, a copy of this application 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 completions are both successful Hilcorp anticipates expanding the existing Susan 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 spacing exception order. 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 Ililcorp Alaska, LLC 3Confidential reservoir pressure data suggests the Tyonek 140 sands within the vicinity of SD-8 have not been drained by existing wells. Likewise, static bottom hole pressure surveys of the Beluga 135 sands indicates insufficient drainage from adjoining wells. LJ Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 4 of 9 Enclosures: Exhibit A, Exhibit B (confidential submittal to AOGCQ, Affidavit, Copy of Certified Mail Receipts (AOGCC only) CC: Affected Owners, Landowners and Operators; DNR Ninilchik Unit Tract 10 Ninilchik Unit Tract 30 State of Alaska Cook Inlet Region, Inc. Dept. of Natural Resources CIRI Land and Resources Dept. Division of Oil and Gas 2525 C Street, Suite 500 550 West 7th Avenue, Suite 1100 Anchorage, AK 99503 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 / 158 Paul Joseph Rochon ✓ Box 202 Kasilof AK 99610 Ninilchik Unit Tract 147 David Ray Reaves & Sherry Ann Reaves f 39340 Hallelujah Court Soldotna AK 99699 Ninilchik Unit Tract 135 Wayne and Irene Findley 504 S Division St. Stuart, IA 50250 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 144 Bea and Andrew Bachner P.O. Box 81205 Fairbanks AK 99708 Ninilchik Unit Tract 147 / 158 Linda Marie McCool P.O. Box 4206 Soldotna AK 99669 Ninilchik Unit Tract 1471158 Ward Randall Grilley P.O. Box 1834 Solodtna, AK 99669 Ninilchik Unit Tract 157 Henry George Gain & Flora Eugenia Gain 204 Seco Drive Portland, TX 78374 Ninilchik Unit Tract 154 Iliamna International, Ltd 3016 W 31 st. Ave Anchorage, AK 99517 • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 5 of 9 Ninilchik Unit Tract 147 Carl and Linda Kinkead 34016 170th Ave. SE, Auburn WA 98092 Ninilchik Unit Tract 151 Kenai Peninsula Borough 144 N. Binkley Street Soldotna AK 99669-7599 Ninilchik Unit Tract 149A W. Lee McKinley PO Box 31-142 Ninilchik, AK 99635 Ninilchik Unit Traci 150 Boyd Daniel Leman 11675 Sterling Highway Ninilchik AK 99639-9706 Ninilchik Unit Tract 148 James and Leonard Sabrowski 2730 Kingfisher Drive Anchorage AK 99551 Ninilchik Unit Tract 152 Aurora Communications International PO Box 1300 Belmont CA 94002 • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 6 of 9 EXHIBIT Al r ♦ SacSoe Hole Location ' ♦ ., TR 10' '. t• `�' s ------------ DIONNE 8 ToW Deplb _ - Tyonek 140 (TPH) • # Y Top of Productive Horizon i • 5 / / / I SOO!SOI�W MOLC b1K I WT ♦ i Tb230 ',' /// / ♦ •to / Legend ... • 04ONNE 8 SHL / r � r � r l I r / r �3K)rllE 8trl )( Top of Productive Horizon 1500 R radius buffer �..: 30001t radlu8 buffer m + D40NNE 8 TD - - - Other Wet Paths • Other Bottom Hole location Other Surface Hole Locabon ® Oib and Gm Unit 1 i' v" 1,000 2JX0 3.000 Feet Exhibit A2 Alaska ;State P!3ne Zone 4, NAD27 Susan Dionne 8 Yap O" 10+21,M13 A Tyonek 140 0 P� Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 7 of 9 EXHIBIT A2 S001 SO14W �• ♦ ♦� Tract 10 DION:dE 8 Surface Hole Location ' •0 LBHL • � tt • - j` Tract 145 t DIOlv1VE8 __--""'--- al �� •: - TotDepth _ - - _...._ • _ � � Top of Proditthcr Horizon � Ski. NINILCHIK UNIT •• S001 S013W .'� Tract 146) s •PAWC1V a sty s ' ♦ ,' Tract 30 r0164NE 8 BHL , ♦ r fr, i r r' .' legend • DIONNE 9 NHL --- ! + DIONNE 3 TD Top of Productive Horizon --- Other "Nell Paths t 500 tt radius buffer • Other Bottom Hole Location 1 + Other Surface Hole Location 16 3000 ft radius buffer ®0,11 and Gas unit Exhibit A2 coo 3 Feet Susan Dionne 8 Alaska State Plane Zone 4, NAD27 Beluga 135 1A !Wap t?�te-�'2lrc�?13 17-j LJ Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 8 of 9 EXHIBIT B CON FI DENTIAL Pages :- 3 ftEDA TE • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 9 of 9 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA NINILCHIK UNIT, SUSAN DIONNE-PAXTON PARTICIPATING AREA Well SD-8 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's proposal to complete Susan Dionne #8 as a gas well within the Susan Dionne Participating Area of the Ninilchik Unit, applicable regulations, and sundries approved by the AOGCC to date. I assert all facts outlined in the above -referenced application for a spacing exception are true. I have reviewed the plats attached herein as Exhibits Al, A2 and B (marked as confidential), and each correctly portrays the pertinent and required data for the AOGCC to take action on this request. j DATED at Anchorage, Alaska this Vr day of October 2013. David W. Duffy, L nd Hilcorp Alaska, LLC STATE OF ALAKSA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this,?3a' day of October, 2013 STATE OF ALASSKA " NOTARY NOT Y PUBLIC IN AND FOR Ulm M. TH TATE OF ALSKA M' 0^ rkjj Otte My Commission expires: a • M M r-9 r-9 'FF 7®r I C I A L Postage $ 2- Certified Fee Ej 1:3 M CJ Return FlecelptFee ED 0(Endorsement Required) M ED Restricted Deliver' Fee (Endorsement Required) -D -D Total Postage & Fees $ Ir Ir- 1:3 C3 Ward Randall Grilley Sent To P.O. Box 1834 11- Ir M 0 'NWjf'AF(!Qb Soldotna, AK 99669 173 M or PO Box No. 171- rl- M= ll,—?1-13 Postmark Here An rn; c2 RECEIVED NOV 212013 A0GCG U.S. Postal Service rPj CERTIFIED MAIL,. RECEIPT (Domestic Mail Only; No insurance Coverage Provided) www.uspsXOMQ�, For delivery information visit our website at co co �Postage m m Certified Fee r 0 /ostmark VV � 0 Return Receipt Fee Here I3 1:3 (Endorsement Required) C1 U-1 Restricted Delivery Fee (Endorsement Required) p O r/� ATotal Postage & Fees 4 Ir 0 o Paul Joseph Rochon Sent To Box 202 O O Street, Ajit' No.; Kasilof, AK 99610 0 C3 or PO sox No. City Stete, ZIP+ r1 r.a ra j M O Ln Y ` a aJ N O M J U ~ O V I U-1 L� a� Q a� ,�d p U� �rn a� � xx b o Postal CERTIFIED MAIL,,, RECEIPT .::t- -I- (Domestic Mail only; No insurance Coverage Provided)_ ru U- m E- rrt - �,: 17�Ar_ [� Postage $ 13 m m Certified Fee 0 1:3 ED Q Return Receipt Fee (Endorsement Required) Postmark Here CI O O ED Restricted Delivery Fee (Endorsement Required) f� 17-1 "D & Fees 0 o Total Postage David Ray Reaves & Sherry Ann Reaves Sent To 39340 Hallelujah Court 1:17 m Er O Street, Apt: h Soldotna, AK 99699 17'1 ED or PO Box N< fti r� City State, Zi zi r-q rq M M a- U- For delivery information visit our website at, m M P, CO CO F k" Ae" L r- r- 171- r— Postage $ M M Certified Fee 3, IM M Return Receipt Fee 1:1 IM (Endorsement Required) Restricted Delivery Fee (Endorsement Required) ED 0 —0 —D Total Postage& Fees $ Ir Er 0 C3 Sent To Wayne and Irene Findley Er Er 504 S Division St. EJ M -A;yt- W Stuart, IA 50250 0 1:1 or PO Box No. City State, State, ZIP+• �1 �-- N U cz E Vft1p, U-Ipw rark Here / I - 2 1 - 1-1> 00 5 C ly r') V) < 0 =- = ►. r1 • . . • . Er a- aD w For delivery information visit our website at www.usps.com,,., m m 4' r A co ro , U 5 a Postage $ 1- -32 m m Certified Fee 3 b O O �• ostmark O O Return Receipt Fee Here C3 M (Endorsement Required) _ E3 0 Restricted Delivery Fee O O (Endorsement Required) r1-ar-i3 Er Er Total Postage & Fees $ <' YZ Sent To State of Alaska Er Er Dept. of Natural Resources ��. o � Sfreef, AFQQY •� Division of Oil and Gas Of PoBox No. 550 West 7th Avenue, Suite 1100 City Stale, ZIP+4 Anchorage, AK 99501-3560 V a a r > o Ln o. a a v r~ C: o o woT 0 o .� v W I in IQ ostal Service,. TIFIED MAILT. RECEIPT stic FFoSd.li'very Mail Only; No Insurance Coverage Provided) o � � information visit our website at www.usps.com®1111 co ro C'- Postage $ n m m Certified Fee d M o M C3 Return Receipt Fee 0 10 (Endorsement Required) r-3 C3 Restricted Delivery Fee (Endorsement Required) O 0 "n `C Total Postage & Fees $ 0 o Paul and Susan Dionne Fen,- ro P.O. Box 39597 Er Ir'0 0 ef,Apr'N&-, Ninilchik, AK 99639 M O OBoxo.17 - r Stet. ZIP+ PS Form 380V, 1� a �\,V, N3 Postmark Here ft C�3 M o 71 7:1 U.S. Postal Service,,,, I CERTIFIED MAILT.RECEIPT -0 A momestic Mail Only; No Insurance Coverage Provide C:l ED ED El Postage o " s a M M Certified Fee r7i Postmark E3 Return Receipt Fee Here 0 M (Endorsement Required) v Fee 1 3 C3 Restricted Delivery Fee (Endorsement Required) ED El —0 —0 T, t .. s IF IF Total Postage & Fees S Z_ ED E3 Linda Marie McCool Sent To P.O. Box 4206 a' Ur o S r A .. .. . . Soldotna, AK 99669 ee, pt or P0 Box No. CTty. 'S i5 ate, Z;IP+ S-I 00 U p cd � p 7� — Q f~ 00 k � N cd craw U.S. Postal Service,. CERTIFIED MAIL,, RECEIPT (Domestic Mail Only; No Insurance Coverage Provided) r For delivery information visit our website at www.usps.comG r o -0 1� . !"- Postage $ c i~ M M Certified Fee O M Return Receipt Fee O ED 0 1:3 (Endorsement Required) Q M Restricted Delivery Fee (Endorsement Required) M O `D `D Total Postage &Fees $ Gf li 0 o Bea and Andrew Bachner sent To P.O. Box 81205 o o Street, Apt No.; Fairbanks, AK 99708 0 C7 or PO Box No. r- f` City State, ZIP+ - ?/-I-3 Postmark Here Q �o U r-r o Cqj a3 U o �-. kn 4" UUNd Postal CERTIFIED MAILTm RECEIPT .a -n Only; CO co Er Ir a F I C I ro cc P- Postage $ f Certified Fee p p Postmark M O EJ M C:3 C3 Return Receipt Fee (Endorsement Required) Restricted Delivery Fee Here (Endorsement Required) l o a & Fees y, 2.- Q- -'—'— o Er o Total Postage Cook Inlet Region, Inc. Sent To CIRI Land and Resources Dept. rr O O Streef, Apt No.r 2525 C Street, Suite 500 or PC Box No. o---- Anchorage, AK 99503 City Sfefe, V a J O � C � Ln a; ) o M aa U " o ~r�.l o i' u r+. M to Q f`- r� m m 0 O CO co F- 17 - Postage $ m m Certified Fee 13 O ED M Return Receipt Fee M (Endorsement Required) O Restricted Delivery Fee (Endorsement Required) Total Postage & Fees Is 0 M Iliamna International, I Er Ir- S ent3016 W 3151 Ave Anchorage, AK 99517 ��. � � Postmark Here �`�—g r cd s~ 0 a� 0 fV O U O Q ram- C`- M M ��. Er a- ..7 -0 CO Postage $ ct] Ln cp Ln Certified Fee r �` Postmark Ln t.t'1 Return Receipt Fee Here O O (Endorsement Required) O O O O Restricted Delivery Fee (Endorsement Required) O 1:3 Total Postage & Fees ?? C' fl.! m rU M Sent To Aurora Communications International C3 —.----- O PO Box 1300 a "t.Nrq Street, apto. Belmont, CA 94002 O l7 or PO Box No. O U - O [` i ciry State, ZIP r~y+ M MIn Q C3 0M 0 Er Er, -0 -0 Postage $ cc Cc .0 LrI Ln Certified Fee LXI Ln Return Receipt Fee C:3 M (Endorsement Required) r3 C3 Restricted Delivery Fee M Cl (Endorsement Required) o E3 M Total Postage & Fees 'Leonard ru I-LI M M James anSat Sent To M M 2730 Kingfisher Drive q —i Street, -Apt: No.;---- ---- Anchorage, AK 99551 r_3 C:j or PO Box No. C3 M City, State, ZIP+4 r- 171- tiI Postmark Here ) a-� Postal CERTIFIED MAIL,. RECEIPT ►. Only, O O -'" CO cc f` iti Postage $ M Mi Certified Fee % O Postmark O CI O ED ReturnReceiptcequir e) Q Here � � (Endorsement Required) f ED M Restricted Delivery Fee (Endorsement Required) mm� t= C! `B A Total Postage & Fees $ o M Boyd Daniel Leman Er sent ro 11675 Sterling Highway 0 o'" .�.�� o 173 Street,ApENa.i Ninilchik, AK 99639-9706 �.� O 0 or PO Box No. � r CIry State, ZIP+� V a a r�i oMe cn • V) M N � � N M N � U �aC),Z Postal CERTIFIED MAIL,. RECEIPT cr rr Mail Only; Provided) r- -(Domestic Ir M o, M` — ro ro -- r� Postage $ MM Certified Fee O O Postmark O O Return Receipt Fee (Endorsement Required) Hers 0 E3 O Restricted Delivery Fee (Endorsement Required) 0o `r y`r & Fees $ Total Postage 0 M W. Lee McKinley sent To PO Box 31-142 Ir 0 o^ o S&W,Apt NY: Ninilchik, AK 99635 M l3 or PO Box No. City State, 2!A, v a a z j M O � a a� L C O � v o m U o ..`�i O .G it rn In Q • • 0 U.S. Postal Service TM CERTIFIED MAILTM RECEIPT Mail only; No Insurance Coverage Provided) _■ .■ (Domestic at www.usps.com® For delivery information visit our website cc � f7`- Postage $ m m Certified Fee � / 0 0 M Return Receipt Fee CI M (Endorsement Required) M 0 Restricted Delivery Fee (Endorsement Required) 0 0 .(/z "� Total Postage & Fees M C3 Evelyn Terry McLaughlin M o Y Y L,.,o Patricia Terry Lodge �'Lila Terry Hanson Er O M c3 � c/o Peter Walton 330 L. Street Anchorage, Alaska 99501 �r-21-/3 Postmark Here �� r 0 • w b W N 00 cd Q' Postal M CERTIFIED MAILT. RECEIPT Ln Ln (Domestic Mail Only, No Insurance Coverage Provided) LI V') Er Q' For delivery information visit our website at vmw.usps.com9 m m�L u CO to P' Postage $ m m Certified Fee j �) r` fO 0 O � Return Receipt Fee (Endorsement Required) / ostmark (((////} Here ED O RestrictedDelivery Fee (Endorsement Required) `111 `n 117 Total Postage & Fees $ a M Carl and Linda Kinkead Sent To 34016 170th Ave. SE, �O Er Sireei,ApCNY, Auburn, WA 98092 0 U or PO Box No. � � Ciry State, ZIP+ :rr V a a • Postal CERTIFIED MAIL,. - • iv(Domestic tr m m 70L IAL U,. .0 r- $ 32 Postage m m Certified Fee / O O O Postmark p p Return Receipt Fee Here O O (Endorsement Required) �/� O � Restricted Delivery Fee (Endorsement Required) / p ..� O A T t I P to & Fees L L� _ $ L/ 7 -- D o a os ge FTo Kenai Peninsula Borough o, o,144 N. Binkley Street Q Soldotna, AK 99669-7599 17 - - PS Form 38uu. V a a (jLn O a a to C O U U o �Ny O V W corn (n Q gggx t ry C N an O LU i O GL. C � 00 bi a bA'L, LJ L tN� V � � C O Postal CERTIFIED MAIL,I Coverage Providedl lmomesoo Mail Only; No Insurance For delivery information k - Yfk� . r•kkkk�llYr•klYk W ilk —a � .� , 6a ..: r x. n �. r 4 CO ru co 3a Cem'f Od Fee '3 •J ww.r P�rtm^.c6; ® Relartt Receipt Fee � (Fr'1n9S V*ni RequIrad) F!crre M '-:i to Restricted DaRmry Fae _:� (F.rxJc eni Requliwl Ln ul T ataf Pc atage & Feroe i -■ }Ienry George Gain R Flora Eugenia Gain _ C3 204 Seco Drive L:j = , Portland, TX 78374 ...._-_- ------- or PO no C.+ 1.4 ..i • • Davies, Stephen F (DOA) From: David Duffy [dduffy@hilcorp.com] Sent: Thursday, December 26, 2013 2:27 PM To: Davies, Stephen F (DOA) Subject: RE: Spacing Exception Application: Susan Dionne No. 8 Attachments: Document.pdf Steve, An electronic copy of the certified mailing receipt for Henry George Gain and Flora Eugenia Gain is attached. 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. From: Davies, Stephen F (DOA)[ma iIto: steve.davies(o)alaska.gov] Sent: Thursday, December 26, 2013 2:17 PM To: David Duffy Subject: RE: Spacing Exception Application: Susan Dionne No. 8 David, As follow-up to our telephone conversation of this afternoon, AOGCC still lacks the Certified Mail Receipt for Henry George Gain and Flora Eugenia Gain to complete the spacing exception application for Susan Dionne 8. The hearing is scheduled for Jan. 2nd. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Friday, December 20, 2013 3:22 PM To: 'David Duffy' Subject: Spacing Exception Application: Susan Dionne No. 8 David, 1 • 0 I'm reviewing Hilcorp's spacing exception application package for Susan Dionne No. 8, and I noticed that the application received November 21, 2013 includes Certified Mail Receipts for all of the affected parties except for Henry George Gain and Flora Eugenia Gain. Could you please provide a photocopy of that receipt with the postmark? Thanks and Happy Holidays, Steve Davies AOGCC 907-793-1224 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Friday, December 20, 2013 3:22 PM To: 'David Duffy' Subject: Spacing Exception Application: Susan Dionne No David, I'm reviewing Hilcorp's spacing exception application package for Susan Dionne No. 8, and I noticed that the application received November 21, 2013 includes Certified Mail Receipts for all of the affected parties except for Henry George Gain and Flora Eugenia Gain. Could you please provide a photocopy of that receipt with the postmark? Thanks and Happy Holidays, Steve Davies AOGCC 907-793-1224 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket. 4 CO-13-25. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Susan Dionne No. 8 (Susan Dionne 8) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of, producing from the same pool. Hilcorp, by letter received October 25, 2013 and by letter of correction received November 21, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order to test and produce development gas well Susan Dionne 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line and within the same governmental section as, and within 3000' of, another well that is, or may be capable of producing from the same pool. Susan Dionne 8 Surface Location: 243' from the north line and 2629' from the east line of Section 6, TIS, R13W, Seward Meridian (S.M.) Top of Productive Interval Locations: 135' from the south line and 2105' from the east line of Section 6, TIS, R13W, S.M. and 242' from the north line and 1548' from the west line of Section 7, TIS, R13W, S.M. Bottom -hole Location: 792' from the north line and 2051' from the west line of Section 7, TIS, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 2, 2014, at 9:00 a.m, at 333 W. 7"' Ave., Ste 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 December 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 793-1221 after December 17, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7"' Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 27, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the January 2, 2014 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 December 30, 2013. Cat y P. oerster Chair, mmissioner #2 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, November 20, 2013 11:50 AM To: 'David Duffy' Cc: Bettis, Patricia K (DOA); Colombie, Jody J (DOA) Subject: RE: SD-8 spacing exception - legals David, So that all of the affected parties are completely clear about this well, could Hilcorp please start over with this application for spacing exception? Please submit a complete, corrected copy of the application to the AOGCC following all requirements of 20 AAC 25.055 (d). Once AOGCC receives the application, we will re -schedule the tentative public hearing and publish a corrected Public Hearing Notice. Thanks for your help. Regards, Steve Davies Sr. Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 Fax: 907-276-7542 From: David Duffy [mailto:ddu hilcorp.com] Sent: Tuesday, November 19, 2013 3:00 PM To: Davies, Stephen F (DOA) Subject: SD-8 spacing exception - legals Steve, I just noticed that the legal descriptions referenced in my October 23 spacing application for SD-8 are NOT correct. All reference given to "T1N, R12W" should be "11S, R13W." However, the distance measurements, referenced maps and notices sent Hilcorp sent to all affected parties are otherwise correct. Sorry for the confusion. Please call or email if you have any questions. 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: 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. • Davies, Stephen F (DOA) From: David Duffy [dduffy@hilcorp.com] Sent: Tuesday, November 19, 2013 3:00 PM To: Davies, Stephen F (DOA) Subject: SD-8 spacing exception - legals Attachments: SD8-Exhibit A2.pdf; SD8-Exhibit A1.pdf Steve, I just noticed that the legal descriptions referenced in my October 23 spacing application for SD-8 are NOT correct. All reference given to "T1N, R12W" should be "11S, R13W." However, the distance measurements, referenced maps and notices sent Hilcorp sent to all affected parties are otherwise correct. Sorry for the confusion. Please call or email if you have any questions. 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. Exhibit A2 ° 1,000 2,000 3,000Feet Susan Dionne 8 Alaska State Plane Zone 4, NAD27 N Hikoq Alaska. LLC Beluga 135 A Map Date: 10/21/2013 0 1,000 2,000 3,000 Feet Exhibit A2 Alaska State Plane Zone 4, NAD27 N Hil—p Alaska, LLC Susan Dionne 8 Map Date: 10l21/2013 Tyonek 140 #i a a 7STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER 'qW 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 _013 AO_14 SEE BOTTOM FOR INVOICE ADDRESS F R ° M AOGCC 333 W 7th Ave, Ste 100 Anchorage, AK 99501 AGENCY CONTACT JodyColombie DE OF A.O. ovember 14, 2013 PHONE 90 79 —1221 PCN DATES ADVERTISEMENT EQUIRED: November 15, 13 THE MATERIAL EEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON E DATES SHOWN. o Anchorage Daily News PO Box 149001 POAnchorage,Bx AK 99514 SPECIAL IN RUCTIONS: Type of Advertisement Legal® ❑ Display PI si d ❑Other (Specify) SEE TA ED SEND INVOICE IN TRIPLICATE TO OGCC, 333 W. 7th Ave., Suite 100 'Anchorage, AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES $ REF TYPE MUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMO T SY CC PGM LC ACCT FY NMR DIST LIO 1 2 REQUISI ZONED DIVISION APPROVAL: 0 -902 (Rev 3/94) U Publisher/Origin'dW—lCopies: Department Fiscal, Department, Receiving AO. FRM Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-13-25. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Paxton No. 8 (Paxton 8) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line, and within the same governmental section as, and within 3,000' of, another well that is, or may be capable of, producing from the same pool. Hilcorp, by letter received October 25, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order to test and produce development gas well Paxton 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line, and within the same governmental section as, and within 3,000' of, another well that is, or may be capable of, producing from the same pool. Paxton 8 Surface Location: 243' from the north line and 2629' from the east line of Section 6, TIN, R12W, Seward Meridian (S.M.) Top of Productive Interval Locations: 135' from the south line and 2105' from the east line of Section 6, TIN, R12W, S.M. and 242' from the north line and 1548' from the west line of Section 7, TIN, R12W, S.M. Bottomhole Location: 792' from the north line and 2051' from the west line of Section 7, TIN, R12W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for December 17, 2013, at 9:00 a.m. at 333 W. 71h Ave., Ste 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 December 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 November 25, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7`' Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 16, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the December 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 December 13, 2013. G P,7i/� Cathy P. Foerster Chair, Commissioner Singh. Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Friday, November 15, 2013 11:16 AM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Ferguson, Victoria L (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); 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); (michaelj.nelson@conocophillips.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; 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); 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: Public Hearing Notice Paxton #8 Attachments: Notice of Public Hearing Paxton 8.pdf JodyJ. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 W. 71h Avenue Anchorage, Alaska 99501 (907) 793-1221 (907) 276-7542 Easy Peel® Labels ♦ Bend along line to 59GOTM 596® Use Avery® Template 51600 � Peed Paper -® expose Pop-up EdgeTM AVERYO � 4 David W. Duffy Landman Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 &a`-QIZSI f iquettes faciles a peler ® i Se, de Repliez a la hachure afro d� www.avery.com Utilisez le gabarit AVERY 5160 'hnmamant reveler le rebord Pop-UpTM 1-800-GO-AVERY Easy Peel® Labels 6 Send atone line to Use Avery® Template 5160® Feed Paper - expose Pop-up Edge7m P 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 40818`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 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 Waidsmith 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. 9e Ct. Anchorage, AK 99515-4295 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 James Gibbs Post Office Box 1597 Soldotna, AK 99669 hiqueittes i<adles a peter i `1� Repliez a fe hachure a+in de ; t�nrwv every cant ^, 44±@B tip 270227 • 0000775861 $ 288.86® 0G 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 November 15, 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. Signe Subscribed and sworn to before me this 1, 5th day of November, 2013 Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES ff' Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-13-25. The application of Hilcorp Alaska, LLC (Hilcorp) for an exception to the spacing requirements of 20 AAC 25.055(a)(2) and 20 AAC 25.055(a)(4) to test and produce development gas well Paxton No. 8 (Paxton 8) within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line, andwithin the same governmental section as, and within 3,000' of, another well that is, or may be capable of, producing from the same pool. Hilcorp, by letter received October25, 2013, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order to test and produce development gas well Paxton 8 within 1500 feet of a property line where the owner and landowner are not the same on both sides of the line,and within the same governmental section as, and within 3,000' of, another well that is, or may be capable of, producing from the same pool. Paxton 8 Surface Location: 243' from the north line and 2629' from the east line of Section 6, T1N, R12W, Seward Meridian (S.M.) Top of Productive Interval Locations: 135' from the south line and 2105' from the east line of Section 6, T1N, R12W, S.M. and 242' from the north line and 1548' from the west line of Section 7, T1N, R12W, S.M. Bottomhole Location: 792' from the north line and 2051' from the west line of Section 7, T1N, R12W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for December 17, 2013, at 9:00a.m. at 333 W. 7th Ave., Ste 100, Anchorago, 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 December 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 November 25, 2013. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on December 16, 2013, except that, if a hearing is held, comments must be received no later than the conclusion of the December 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 December 13, 2013. AO-14-013 Published; November 15, 2013 Cathy P. Foerster Chair, Commissioner STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF AO_14_013 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7>h Avenue, Suite 100 Jody Colombie November 14 20] o Anchorage_ AK 99501 PHONE PCN M 907 793 -1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News November 15, 2013 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS g ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America State of 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 - Hilcorp Alaska, LLC October 23, 2013 Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 100 Anchorage, AK 99503 Phone:907/777-8300 Fax: 907/777-8301 Cathy Foerster, Chair RECEIVED Alaska Oil and Gas Conservation Commission 0 C T 25 2013 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 AOGCC RE: Application to allow for testing, completion and production of the Susan Dionne No. 8 from the Undefined Tyonek and Beluga Pools within the Ninilchik Unit Dear Commissioner Foerster, On April 11, 2013, Hilcorp Alaska, LLC ("Hilcorp"), as Operator of the Ninilchik Unit, submitted an application for a Permit to Drill the Susan Dionne No. 8 ("SD-8") exploratory oil well. The AOGCC approved said application on April 25, 2013. On June 18, 2013, Hilcorp proposed minor changes to the drilling program. These modifications were approved on June 28, 2013. The drilling of SD-8 commenced on in July 2013 with the Saxon 147 drill rig. After reaching a total depth of 12,130 and completion of open -hole wireline logging in early September, the AOGCC granted approval for short term drill stem tests of proposed exploratory oil zones. These tests proved unsuccessful. Hilcorp now proposes to test and complete SD-8 as a developmental gas well from the Undefined Tyonek and Beluga Pools. The location of the well is as follows: Surface: 243' FNL, 2629 FEL, Section 6, TIN, R12W, SM, AK. • Top of Productive Horizon: o Tyonek: 242' FNL, 1548' FWL, Section 7, TIN, R12W, SM, AK. o Beluga: 135' FSL, 2105' FEL, Section 6, TIN, R12W, SM, AK. • Total Depth: 792' FNL, 2051' FWL, Section 7, TIN, R12W, SM, AK. The SD-8 well design includes dual string with packer isolation to segregate Undefined Tyonek Pool from the Undefined Beluga Pool. This design is warranted to develop gas appropriately with respect to reservoir pressure differences because it precludes cross flow and down -hole commingling issues. Moreover, this design allows for appropriate allocation and reporting of production from each respective 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: Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 2 of 9 (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 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-8 and its relationship to adjoining properties and wells is depicted in Exhibit Al and A2. As demonstrated by Exhibit Al (Tyonek 140): • Hilcorp is the only owner and operator within the affected area.1 • The affected "landowners" within 1500' of the proposed Tyonek perforations include Ninilchik Unit Tract Nos. 10, 30, and 145.2 All such tracts are contained within the Susan Dionne -Paxton Participating area (applicable only to the Undefined Tyonek Pool). None are segmented with respect to depth. • The distance to the nearest point where landownership changes is —710' from the proposed Tyonek 140 Top of Productive Horizon. • There are no other wells open to the Undefined Tyonek Pool within Section 7, Township 1 South, Range 13 West, Seward Meridian, Alaska. See Exhibit B (Confidential). • There are no other wells capable of producing from the Undefined Tyonek Pool within 3000' of the proposed SD-8 Tyonek 140 perforations. See Exhibit B (Confidential). As demonstrated by Exhibit A2 (Beluga 135): • Hilcorp is the only owner and operator within the affected area. • The affected "landowners" within 1500' of the proposed Beluga perforations include Ninilchik Unit Tract Nos. 10, 30, 145 and 146. All tracts are contained within, but vertically above the Susan Dionne -Paxton Participating area (not applicable to the Undefined Beluga Pool). None are segmented with respect to depth. 1 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 Per AS 31.05.170(7) "landowner" means the owner of the subsurface estate of the tract affected. Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 3 of 9 • The distance to the nearest point where landownership changes is —55' from the proposed Tyonek 140 Top of Productive Horizon. • Other wells capable of producing from the Undefined Beluga Pool within Section 6, Township 1 South, Range 13 West, Seward Meridian, Alaska include SD-1, SD-2A (proposed), and SD-4. Other wells capable of producing within 3000' of the proposed SD-8 Beluga 135 perforation include: SD-5 (located 2816' to the south) and SD-6 (located 2898' to the west). See Exhibit B (Confidential). Based on confidential geological and engineering data available to Hilcorp, it is apparent that the Tyonek and Beluga formations are particularly discontinuous and unpredictable, that they drain small areas (the majority of sands drain less than 180 acres or —1,575' radius), and the proposed development of SD-8 is necessary to maximize recovery of gas from the Undefined Tyonek and Beluga Pools.3 Hilcorp owns a 100% working interest in the Ninilchik Unit and is the only operator within the affected area. At the date of this mailing, a copy of this application 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 completions are both successful Hilcorp anticipates expanding the existing Susan 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 spacing exception order. 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 3Confidential reservoir pressure data suggests the Tyonek 140 sands within the vicinity of SD-8 have not been drained by existing wells. Likewise, static bottom hole pressure surveys of the Beluga 135 sands indicates insufficient drainage from adjoining wells. • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 4 of 9 Enclosures: Exhibit A, Exhibit B (confidential submittal to AOGCC), Affidavit, Copy of Certified Mail Receipts (AOGCC only) CC: Affected Owners, Landowners and Operators; DNR 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 /145 /146 Paul and Susan Dionne P.O. Box 39597 Ninilchik AK 99639 Ninilchik Unit Tract 147 / 158 Paul Joseph Rochon Box 202 Kasilof AK 99610 Ninilchik Unit Tract 147 David Ray Reaves & Sherry Ann Reaves 39340 Hallelujah Court Soldotna AK 99699 Ninilchik Unit Tract 135 Wayne and Irene Findley 504 S Division St. Stuart, IA 50250 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 30 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 1471158 Linda Marie McCool P.O. Box 4206 Soldotna AK 99669 Ninilchik Unit Tract 1471158 Ward Randall Grilley P.O. Box 1834 Solodtna, AK 99669 Ninilchik Unit Tract 157 Henry George Gain & Flora Eugenia Gain 204 Seco Drive Portland, TX 78374 Ninilchik Unit Tract 154 Iliamna International, Ltd 3016 W 31 st. Ave Anchorage, AK 99517 • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 5 of 9 Ninilchik Unit Tract 147 Carl and Linda Kinkead 34016 170th Ave. SE, Auburn WA 98092 Ninilchik Unit Tract 151 Kenai Peninsula Borough 144 N. Binkley Street Soldotna AK 99669-7599 Ninilchik Unit Tract 149A W. Lee McKinley PO Box 31-142 Ninilchik, AK 99635 Ninilchik Unit Tract 150 Boyd Daniel Leman 11675 Sterling Highway Ninilchik AK 99639-9706 Ninilchik Unit Tract 148 James and Leonard Sabrowski 2730 Kingfisher Drive Anchorage AK 99551 Ninilchik Unit Tract 152 Aurora Communications International PO Box 1300 Belmont CA 94002 • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 6 of 9 EXHIBIT Al O • DIONNE 3 ♦� DIONNE 8 •� d i Surface Hole Location ♦ _`._,. a TR 10 . • DIONM& L8I-L • TR 145 rr .� DIONNE 8 ' Total oek 140 (TPM i ' � S001SO14W NINILCHIK • N7Hp 13 _- Ty SBHL Top of Productive Horizon NIT ' S001 SO13W ,' x ,•PAXTON 4 BHL , TR 30 gIONNE 5 BHL • • , X Top of Productive Horizon 1500 ft radius buffer 3000 ft radius buffer Legend i DIONNE 8 SHL DIONNE8TD - - - Other Well Paths • Other Bottom Hole Location Other Surface Hole Location C3Oil and Gas Unit 17 0 1.000 2.000 3.000 Feet Exhibit A2 Alaska State Plane Zone 4, NAD27 Susan Dionne 8 Map Tyonek 140�� ta.7t2ot3 • • Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 7 of 9 EXHIBIT A2 S001 SO14W I '9 t♦ �� Tract 10 DIONNE Hole e L s - -�---T Surface Location DIOM & tBHL i _ Trsd 145 it i l3 , DIOA'I+IE 8 __ -------- Total Depth "-- �•� ' Beluga 135 (M) i Top of Productive Horizon lON 8HL tdIFALCHIK UNIT t %S001 S013W ` . % 'i Tract t4 ' -- - / PAMON 4 BHL 10 . Tract 30 p6NNE 5 BHL / Legend I + DIONNE 8 SHL L j DIONNE 8 TD Top of Productive Horzon --- other Well Paths / 1500 ft radius buffer * Other Bottom Hole Location * Other Surface Hole Location ` 3000 ft radius buffer oil and Gas Unit D 1,000 2.00D 3.000 Exhibit A2 feet Susan Dionne 8 Alaska State Plane zone 4. NAD27 Beluga 135 rwPoa: 1a,21;A13 A • n U CONFIDENTIAL Held in Secure EXHIBITS Storage Ninilchik Unit SD-8 Spacing exception Application October 22, 2013 Page 9 of 9 VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA NINILCHIK UNIT, SUSAN DIONNE-PAXTON PARTICIPATING AREA Well SD-8 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's proposal to complete Susan Dionne #8 as a gas well within the Susan Dionne Participating Area of the Ninilchik Unit, applicable regulations, and sundries approved by the AOGCC to date. I assert all facts outlined in the above -referenced application for a spacing exception are true. I have reviewed the plats attached herein as Exhibits Al, A2 and B (marked as confidential), and each correctly portrays the pertinent and required data for the AOGCC to take action on this request. rj DATED at Anchorage, Alaska this Z3 day of October 2013. David W. Duffy, L d Hilcorp Alaska, LLC STATE OF ALAKKA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me thiS&h day of October, 2013 STATE OF ALAS ` -�P- i NOTARY PUBLIC0 NOT Y PUBLIC IN AND FOR Zelma M. Clarks TH STATE OF ALSKA MYCMVOW n Wk%1* 13, 231LJ My Commission expires: !/ /d " / E • ra ra Ir Er Er Ir ru RJ m m rq ri —0 .0 0 Postago $ • 3-7 Certified Fee 3 •/d p ® Postmark p p Return Receipt Fee Here O p (Endorsement Required) 0 C3 Restricted Delivery Fee 0 O (Endorsement Required) �L/ ' 4 �t Total Postaqe & Fees $ 7 �0� a ra Aurora Communications International ru nu Sent To PO Box 1300 r-q a Sireef, apt: Belmont, CA 94002 17-1 0 or PO Box Ciry, State, U a o o � rn CL w Lr c o o) 0 u =' o ^� o.' u ZZ r) LA Q Q • A r r9 ..b tl� • r1T��C7i4kTl[�JIIIrN�[•ll�F7tit;titK=lr1•1'[aY•_L'��i/[•�iyra E. Ir CO COe rU R1pj Mm ra r-3 Postage $ /-3X A .n Certified Fee �• � D o p Postmark Return Receipt Fee (Endorsement Required) Here 0 O 0 0 Restricted Delivery Fee (Endorsement Required) M M & Fees L/ $ • • �� 3 Total Postage State of Alaska 0 0 0 Ln V) � M C& cd4� z Q.= In M Q . on .>~ V >_ o IQLd ru nj Sent To Dept. of Natural Resources r9 r 9 Street, a, Division of Oil and Gas or PO 550 West 7th Avenue, Suite 1100 ------- Anchorage, AK 99501-3560 a� O M Q � O � Q � wa;z Postal CERTIFIED MAIL,, RECEIPT ru ru (Domestic Mail Only, C3 C3 r` N co co z ru ru I aa Postage $ 431 Certified Fee do o � O Po Return Fee Here C1 C7 (Endorsement Required) 0 C3 Restricted De"very Fee (Endorsement Required) 0 0 � ya Total Post— R F— `n `0 Paul and Susan Dionne a a Sent To P.O. Box 39597 a a Ninilchik, AK 99639 Street, Apt O CO or PO Box Ctty State V a a (� j M o ao Q o. Q ' j v � C O 010 0 o yr 4 cc u Q M °°LAQ 0 0 0 C" t;z a le kP /Nn N o< C:) U.S. Postal Service,,, CERTIFIED MAIL,. 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RECEIPT (Domestic Mail Only, No Insurance Coverage Provided) c_--1:....... visit nur Weh3ite at WWW.USPS.COMO ru I'Ll CO cc Postage $ /, 3 ru fU Certified Fee C:l ED 3, Postmark C--1 O Return Receipt Fee Here O C7 (Endorsement Required) O 0 Restricted Delivery Fee ra r--j (Endorsement Required) M r 1 Total Postage & Fees $ W. Lee McKinley o C3 sent To PO Box 31-142 O Im street; A; Ninilchik, AK 99635 or PO &k __--- ciry stet J a a '> Q„ v v co C:0O o 0 u o o(uv *' x rnNQ < a r =�- e� �I 3 a r ICI O U O O p ;Z C" •bA��i cd U o .� N U.S. Postal Service-r. 0. U U N d - - Ur-K i iritu IVIAILTm tt (Domestic Mail Only; No Insuran For delivery information visit our wet p p Restricted Delivery Fee r (Endorsement Required) trl u') rU M Total Postage & Fees $ y. 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Box 81205 0 0 Api Fairbanks, AK 99708 r f`treei, or PO Box City State ftym v ]Ln fh U? iT :5 CC p a) O � i+1 � 61 6 Q1 0 u ti n�O N L O U ✓ IFT+MI M U0 Q Q E Postmark Here --- �- -L-In- Fo delivery information visit our weL ni u -- ..� Co co Postage $ J• 3 2 � ni Certified Fes O O tFee (Endorsement Required) p p Restricted Delivery Fee rq r i (Endorsement Required) r1i ru Total Postage & Fees $ --� Linda Marie McCool o o enr o P.O. Box 4206 0 0 N 'shear: iipr: Soldotna, AK 99669 or PO Box City, Stste, V a (� j M .� Z Ln -3 C Q n. QCu �> v r6 a vo0� o t .�- c —5 u Q McnQ S E Postmark Here •. • For delivery Information visit our website at www.usps.coma f� f�- ..0 ru ru iw� co r o Postage $nj ru Certified Fee , �O M O Return Receipt Fee Postmark O O (Endorsement Required) Here O O Restricted Delivery Fee r j r q (Endorsement Required) rU ru Total Postage & Fees $ Ward Randall Grilley p O entTo P.O. Box 1834 0 0 tti rti �ir'eei,AF Soldotna, AK 99669 ------- or PO Be, MM Wo .-C' � N Ire a Z ®t 0 a0�.� t� 2 _4 6Y n'0 yt r� J S �t CC Ln L. aMw rtn Q �, s P' b 1J 03 V t to l� Sin O w cC M 00 > N 0 Q O .v O O N � • Postal CO CO CERTIFIED MAILT. RECEIPT [` 11-(Domestic Mail Only, For delivery information visit our website at www.usps.corn@ ru ru co � CO3 Postage ^ $ �• p` 0 ru 0 Certified Fee l 0 E3 M Return Receipt Fee Postmark Here _ (Endorsement Required) O O Restricted Delivery Fee r-q r-j (Endorsement Required) tl•I t.t-) fU ru Total Postage & Fees $ 7 ' -. = Henry George Gain & Flora Eugenia Gain 0 E3 enr ro 204 Seco Drive Street, AF Portland TX 78374 or PO Bo. City, Stet. V a a Rf j M Ln 7 C � a ¢ > per. � f6 C O 0 U — O C W M Q l n Q • • Ln ul .0 ro ri r-i - ro Postage $ ru ru Certified Fee 0 aO Retum Receipt Fee (Endorsement Required) O C3 Restricted Delivery Fee -� ra r-q (Endorsement Required) U-I u, Total Postage & Fees $ 7 / Iliamna International, Ltd .:I- m m sent To 3016 W 3 1 " Ave � r� o rD 3`rreei, Ap Anchorage, AK 99517 or PO Boa City state a M Ln 3 c ° M MW L c o a, vo a U c C O .i U Y r�+r � VIQ Q Postmark Here fi p� IlL Y x � 6' , . '4 �h 3 � M Postalru ru CERTIFIED MAIL. RECEIPT 21 C/1 0- D- (Domestic/ . insurance Coverage. . . armum v U j mco Postage $ /. 3 ru rLi Certified Fee .� M C3 Postmark o O M Return Receipt Fee Here (Endorsement Required) O M Restricted Delivery Fee (Endorsement Required) `f rU rU Total Postage & Fees s :, 7 a Boyd Daniel Leman o o enr o 11675 Sterling Highway 171-- N �;freeLAF Ninilchik, AK 99639-9706 or PO 80: City, State V a j M z 5 ° o Q '> Gam. c o Cr C vo m r, o C y Q .Y U 4� M n Q Q CO CO 1 ' M M L-n Ln r` For delivery information Visit our website at m qyS OF 1 Y 1 u CO `fl Postage $ , 32 ., ru O Certified Fee 0 M E3 0 Return Receipt Fee Postmark Here (Endorsement Required) O O Restricted Delivery Fee r-q r I (Endorsement Required) rt.l ru Total Postage & Fees $ y yoZ •D• = _-r James and Leonard Sabrowski M o sent To 2730 Kingfisher Drive a o r M I�feef,Aii Anchorage, AK 99551 or PO Box City, "s"reie '-"---