The URL can be used to link to this page

Home My WebLink AboutCO 699INDEX CONSERVATION ORDER NO. 699 1. April 21, 2014 Hilcorp's application for spacing exception to allow testing, completion and production of BCU #19 (Exhibits A and B held confidential in secure storage) 2.-------------------- Emails between Hilcorp and AOGCC re: Planned Perforations 3. May 22, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, and mailings INDEX CONSERVATION ORDER NO. 699 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, July 10, 2014 3:00 PM To: Foerster, Catherine P (DOA); Seamount, Dan T (DOA) Cc: Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Ballantine, Tab A (LAW) Subject: BCU 19 Spacing Exception Hearing (July 15, 2014) - Recommend Vacating Hearing Attachments: co237a.pdf Cathy and Dan: Conservation Order 237A (attached), approved June 18, 2014, eliminates the need for a spacing exception for Hilcorp's Beaver Creek Unit 19 well (BCU 19). By email below, Hilcorp withdraws its application for that exception. I recommend vacating the public hearing that is tentatively scheduled for July 15tn Thanks, Steve D Hilcorp submitted this application for exception prior to approval of CO 237A. At that time, an exception was needed because BCU 19 will produce from the Sterling Gas Pool closer than 1320' from the nearest well open to the same pool. Rule 3(a) of CO 237A removes restrictions as to gas well spacing in the Sterling and Beluga Gas Pools. BCU 19 is located more than 1500' from the exterior boundary of the Beaver Creek Unit. Hilcorp owns 100% working interest in the Beaver Creek Field. The affected landowners are BLM and CIRI. Both were notified by certified mail sent April 21, 2014. There are no protests, comments, or requests for hearing in the application folder. CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: David Duffy [mailto:dduffy@hilcorp.com] Sent: Tuesday, July 08, 2014 7:25 AM To: Davies, Stephen F (DOA); Colombie, Jody J (DOA) Subject: BCU 19 Hearing - request to vacate Steve, On June 18, the AOGCC issued CO 237A. This revised order eliminated well spacing restrictions within 1500' of the unit boundary for both the Sterling and Beluga Pools. As a result, our pending application for a spacing exception for BCU 19 is no longer necessary. Hilcorp hereby withdraws this application and requests the hearing, currently scheduled for July 15, be vacated. Regards, David Duffy, Landman Hilcorp Alaska, LLC Direct: 907-777-8414 Cell: 907-301-2629 dduffv@hilcorp.com L] • 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. Ah STATE OF ALASKA ADVERTISING ORDER 1W NOTICE TO PUBLISHER 1W 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 ADVERTISING ORDER NO. A O—�4—O�p M v SEE BOTTOM FOR INVOICE ADDRESS F R ° M AOGCC 333 W 7th Ave, Ste 100 Anchorage, AK 99501 AGENCY CONTACT Jody Colombie DATE OF A.O. May 22, 2014 PHONE 907 793 —1221 PCN DATES ADVERTISEMENT REQUIRED: May 23, 2014 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 g SPECIAL INSTRUCTIONS: Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEE ATTACHED Co -1 `-C- C> SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES $ REF ITYPE I NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST ua 1 14 02140100 73451 2 REQUISITIONED Y: DIVISION APPROVAL: 02-902 (Rev. 3/94) V----fuiblisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM E • Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-010. The application of Hilcorp Alaska, LLC (Hilcorp) for spacing exception to allow testing, completion and production of Beaver Creek Unit No. 19 from the Beaver Creek Field, Sterling Pool. Hilcorp, by letter received April 22, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an exception to Conservation Order No. 237, Rule 3 to allowing testing, completion and production of development gas well Beaver Creek Unit No. 19 from the Sterling Gas Pool closer than 1320' from the nearest wellbore open to the same pool. Beaver Creek Unit No. 19 Surface Location: 1201' from the north line and 3618' from the east line of Section 34, T07N, RIOW, Seward Meridian (S.M.) Top of Productive Interval Location: 2636' from the north line and 2296' from the west line of Section 34, T07N, R10W, S.M. Bottom -hole Location: 2570' from the south line and 1105' from the west line of Section 34, T07N, RIOW, S.M. The AOGCC has tentatively scheduled a public hearing on this application for July 15, 2014, 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 June 13, 2014. 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 June 19, 2014. 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 June 26, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the July 15, 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 July 10, 2014. Cathy P. oers r Chair, Commissioner 270227 DECEIVED► 0001060196 MAY 3 0 201 $ 263.94 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 May 23, 2014 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me this 23rd day of May, 2014 Notary Puke in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-010. The application of Hilcorp Alaska, LLC (Hilcorp) for spacing exception to allow testing, completion and Production of Beaver Creek Unit No. 19 from the Beaver Creek Field, Sterling Pool. Hilcorp, by letter received April 22, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an exception to Conservation Order No. 237, Rule 3 to allowing testing, completion and production of development gas well Beaver Creek Unit No. 19 from the Sterling Gas Pool closer than 1320' from the nearest wellbore open to the same pool. Beaver Creek Unit No. 19 Surface Location: 1201' from the north line and 3618' from the east line of Section 34, T07N, R10W, Seward Meridian (S.M.) Top of Productive Interval Location: 2636' from the north line and 2296' from the west line of Section 34, T07N, R10W, S.M. Bottom -hole Location: 2570' from the south line and 1105' from the west line of Section 34, T07N, R10W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for July 15, 2014, at 9:00 a.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 June 13, 2014. 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 June 19, 2014. 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 June 26, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the July 15, 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 July 10, 2014. AO-14-038 Published: May 23, 2014 Cathy P. Foerster Chair, Commissioner • 0 STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ORDER 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 A O� 1 A�O3p M � F v SEE BOTTOM FOR INVOICE ADDRESS ► AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7"' Avenue. Suite 100 Jody Colombie May 22 2014 PHONE PCN o Anchorage_ AK 99501 M 907 793 -1221 DATES ADVERTISEMENT REQUIRED: May 23, 2014 o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 g THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS 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 HER 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 2012, and thereafter for consecutive days, the last publication appearing on the day of , 2014, 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 2014, Notary public for state of My commission expires. E r� Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, May 22, 2014 2:45 PM To: Singh, Angela K (DOA); Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody 1 (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jones, Jeffery B (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Turkington, Jeff A (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWeIIIntegrityCoordinator; Alexander Bridge; Andrew VanderJack; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose; Bill Walker; Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Cliff Posey; Colleen Miller; Crandall, Krissell; D Lawrence; Dave Harbour; David Boelens; David Duffy; David Goade; David House; David McCaleb; David Scott; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer; Frank Molli; Gary Schultz (gary.schultz@alaska.gov); George Pollock; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff; Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jerry McCutcheon; Jim White; 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 Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; MJ Loveland; mjne►son; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nick W. Glover; Nikki Martin; NSK Problem Well Supv; Patty A►faro; 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; Sternicki, Oliver R; Moothart, Steve R (DNR); 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; Tyler Senden; 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; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Hans Schlegel (hans.schlegel@ge.com); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Kenneth Luckey; 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; Peter Contreras; Richard Garrard; Robert Province; 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: Notice of Hearing Beaver Creek #19 I is Attachments: Notice of Public Hearing, CO-14-010.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Jody. ColombieAalaska. gov Office: (907) 793-1221 Fax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iody.colombie@alasE .gov • David W. Duffy, Landman Hilcorp Alaska, LLC Post Office Box 244027 Anchorage, AK 99524-4027 fVl2'I(- 22 `� • • Penny Vadla George Vaught, Jr. Jerry Hodgden 399 W. Riverview Ave. Post Office Box 13557 Hodgden Oil Company Soldotna, AK 99669-7714 Denver, CO 80201-3557 408 18 St. Golden, CO 80401-2433 Bernie Karl CIRI North Slope Borough K&K Recycling Inc. Land Department Planning Department Post Office Box 58055 Post Office Box 93330 Post Office Box 69 Fairbanks, AK 99711 Anchorage, AK 99503 Barrow, AK 99723 Richard Wagner Gordon Severson Jack Hakkila Post Office Box 60868 3201 Westmar Cir. Post Office Box 190083 Fairbanks, AK 99706 Anchorage, AK 99508-4336 Anchorage, AK 99519 Darwin Waldsmith lames Gibbs Post Office Box 39309 Post Office Box 1597 Ninilchik, AK 99639 Soldotna, AK 99669 • Davies, Stephen F (DOA) From: Stan Porhola <sporhola@hilcorp.com> Sent: Thursday, May 08, 2014 3:40 PM To: Davies, Stephen F (DOA) Subject: Re: BCU-06 (PTD 181-150), BCU-11 (PTD 203-025), and BCU-19 (PTD 208-123): Planned Perforations in BCU 11 and BCU 19 This would be a future project. No current plans to perforate the Steling at this point. Stan Porhola Operations Engineer Hilcorp Alaska, LLC 907-331-8228 On May 8, 2014, at 3:38 PM, "Davies, Stephen F (DOA)"<steve.davies@alaska.gov<mailto:steve.davies@alaska.gov>> wrote: Sta n, I have an application from Hilcorp dated April 21, 2014 that requests an exception to the spacing revisions of CO 237 Rule 3 to allow testing completion and production of BCU 19 within the Sterling Gas Pool. Such an exception is needed because of the close proximity of BCU 19 to BCU 9 in the Sterling Pool. Does BCU 19 Does Hilcorp still plan to perforate and test / produce the Sterling in BCU 19? When? As I recall, Sundry No. 314-172 approves only perforations in the Upper Beluga interval and not in the Sterling. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Thursday, May 08, 2014 1:48 PM To: 'Stan Porhola' Subject: BCU-06 (PTD 181-150), BCU-11 (PTD 203-025), and BCU-19 (PTD 208-123): Planned Perforations in BCU 11 and BCU 19 Sta n, Thank you for your explanation concerning spacing requirements. Regards, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or :7 Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Thursday, May 08, 2014 3:38 PM To: Stan Porhola (sporhola@hilcorp.com) Subject: FW: BCU-06 (PTD 181-150), BCU-11 (PTD 203-025), and BCU-19 (PTD 208-123): Planned Perforations in BCU 11 and BCU 19 Stan, I have an application from Hilcorp dated April 21, 2014 that requests an exception to the spacing revisions of CO 237 Rule 3 to allow testing completion and production of BCU 19 within the Sterling Gas Pool. Such an exception is needed because of the close proximity of BCU 19 to BCU 9 in the Sterling Pool. Does BCU 19 Does Hilcorp still plan to perforate and test / produce the Sterling in BCU 19? When? As I recall, Sundry No. 314-172 approves only perforations in the Upper Beluga interval and not in the Sterling. Thanks, Steve Davies AOGCC From: Davies, Stephen F (DOA) Sent: Thursday, May 08, 2014 1:48 PM To: 'Stan Porhola' Subject: BCU-06 (PTD 181-150), BCU-11 (PTD 203-025), and BCU-19 (PTD 208-123): Planned Perforations in BCU 11 and BCU 19 Sta n, Thank you for your explanation concerning spacing requirements. Regards, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Stan Porhola [mailto:sporhola@hilcorp.com] Sent: Thursday, May 08, 2014 10:10 AM To: Davies, Stephen F (DOA); Schwartz, Guy L (DOA) Cc: Larry Greenstein; Bruce Hershberger; Warren Camp; Sean Maguire; Christopher Walgenbach; Chad Helgeson Subject: FW: BCU 11 and BCU 19: Planned Perforations Guy/Steve, We successfully abandoned the Upper Beluga interval in the BCU-06 (PTD 181-150) last night squeezing off the interval with a bridge plug below and a cement retainer above the Upper Beluga interval (6,018'-6,179') and squeezed 30 bbl of cement below the retainer into the perfs. Our plan forward is to perforate the BCU-19 (PTD 208-123) and BCU-11 (PTD 203-025) in the Upper Beluga intervals per their approved sundries (BCU-19 314-172; BCU-11 314-178). The distance from BCU-19 to BCU-11 in the Upper Beluga interval is 2,293'. The Upper Beluga is now included in the pool rules and spacing requirements of 1,320' per Conservation Order 237.002. Sta n From: Stan Porhola Sent: Friday, March 21, 2014 9:30 AM To: Davies, Stephen F (DOA) Cc: Larry Greenstein Subject: RE: BCU 11 and BCU 19: Planned Perforations Steve, Our current rig schedule would include the BCU-19 (PTD 208-123) and BCU-11 (203-025) workovers followed up with either the BCU-07 (PTD 176-006) or BCU-06 (PTD 181-150) workover. However, the BCU-06 workover may be moved up to take place between the BCU-19 and BCU-11 wells. A sundry for the BCU-06 work will be submitted shortly. The scope of the BCU-06 workover would include abandonment of the existing Upper Beluga intervals between 6,018' and 6,179'. Upon abandonment of these intervals in BCU-06, we would plan to do the thru-tubing perforating of either the BCU-19 or BCU-11 well in the Upper Beluga interval to have only 1 well capable of production according to state spacing rules of 20 AAC 25.055(a)(4), having a single gas well completed in any governmental section within 3,000' of another well that is completed in a zone that is not defined by a pooling agreement. Stan From: Davies, Stephen F (DOA)[ma iIto: steve.davies(cbalaska.gov] Sent: Thursday, March 20, 2014 5:56 PM To: Stan Porhola Subject: BCU 11 and BCU 19: Planned Perforations Sta n, The Upper Beluga perforations in BCU 6 and the planned Upper Beluga perforations in BCU 11 and BCU 19 appear to lie within the same governmental section and within 3000' of one another. So, unless Hilcorp can prove that these reservoir sands are not in pressure communication, spacing exceptions will be needed under 20 AAC 25.055(a)(4) regardless of whether or not the existing perforations in BCU 6 are plugged. Please let me know if you have questions. Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporhola(cbhilcorp.com] Sent: Thursday, March 20, 2014 5:09 PM 2 To: Davies, Stephen F (DOA) • 0 Subject: RE: BCU 11: Planned Perforations We are currently evaluating plans to cement squeeze the perforations in the Upper Beluga in the BCU-06. Further information is forthcoming. Stan From: Davies, Stephen F (DOA)[mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 5:07 PM To: Stan Porhola Subject: RE: BCU 11: Planned Perforations Stan, Since the distance from BCU-06 to BCU-11 at the Upper Beluga horizon is 943', please justify why a spacing exception is not required under 20 AAC 25.055(a)(4) for the planned perforations in BCU-11- Thanks, Steve Davies AOGCC From: Stan Porhola [mailto:sporholaC�hilcorp.com] Sent: Thursday, March 20, 2014 1:21 PM To: Davies, Stephen F (DOA) Subject: RE: BCU 11: Planned Perforations Steve, The only well that is currently open to the Upper Beluga sands at Beaver Creek is the #6 well (PTD 181-150). The distance from BCU-06 to BCU-11 (PTD 203-025) at the Upper Beluga horizon is 943'. The top of the Beluga Gas Pool within BCU-11 is 7,147' MD (6,911' TVD). Sta n From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Thursday, March 20, 2014 12:42 PM To: Stan Porhola Subject: BCU 11: Planned Perforations Sta n, What is the distance from the planned perforations in BCU 11 to the nearest well open to those same sands? The Beluga Gas Pool is defined in Conservation Order No. 237. According to Hilcorp's well log correlations, what is the measured depth of the top of the Beluga Gas Pool within BCU 11? Thanks, Steve Davies 3 AOGCC • • 907-793-1224 0 • April 21, 2014 Hilcorp Alaska, LLC 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 Q, i,� t Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 APR ' Anchorage, Alaska 99501±,�� RE: Application for spacing exception to allow testing, completion and production of BCU #19 from the Beaver Creek Field, Sterling Pool. Dear Commissioner Foerster, As Operator of the Beaver Creek Field, Hilcorp Alaska, LLC ("Hilcorp") respectfully requests the Alaska Oil and Gas Conservation Commission ("AOGCC") to issue an exception to Conservation Order No. 237, Rule 3 (Well Spacing), to allow testing, completion and production of BCU # 19 from the Sterling Gas Pool closer than 1,320' feet from the nearest open wellbore in the same pool. The location of BCU #19 and its relationship to adjoining properties and wells is depicted in Figure 1. • Surface Location: 1201' FNL, 3618' FEL, Section 34, T07N, R10W SM, Alaska. • Top of Productive Horizon: 2,636' FNL, 2296' FWL, Section 34, T07N, R10W SM, Alaska. • Bottom Hole Location: 2570' FSL, 1,105' FWL, Section 34, T07N, R10W, SM, Alaska. Hilcorp owns a 100% working interest in the Beaver Creek Field. No leases within the field are segregated with regard to depth. The nearest point where land ownership changes (unit boundary) exceeds 3,780' feet. The distance to the nearest well open to the same pool (Sterling) is approximately 670 feet (BCU 9).1 There are no other affected owners, landowners or operators. Based on confidential geological and engineering data available to Hilcorp, it is apparent that the Sterling sandstones are particularly discontinuous and unpredictable, that they drain small areas, and that the proposed development of BCU #19 is necessary to maximize recovery of gas from the Beaver Creek Field's Sterling Pool. At the date of this mailing, a copy of this proposed amendment was sent by certified mail to the potentially affected owners, landowners and operators (BLM and CIRI). Also 1 See Figure 1. Beaver Creek Unit 0 0 BCU#19 Spacing Exception April 21, 2014 Page 2 of 6 enclosed is an affidavit stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true. As demonstrated above, granting an exception to Rule 3 of Conservation Order No. 237 is proper as the proposed action will not impact the correlative rights of any third parties. Please note: On April 3, 2014, Hilcorp requested AOGCC amend Rule 3(a) of CO 237 to eliminate the 160 acre well spacing and the requirement that no gas well can be open within 1,320' of another gas well in the same pool. A tentative hearing on the application has been set for May 29, 2014. In the event that AOGCC timely approves the requested modification of CO 237, BCU 19 will no longer require a spacing exception. In that event, Hilcorp will withdraw this application dated April 21, 2014. If you have any questions regarding this request, please contact Mr. Kevin Eastham, Senior Geologist, at 777-8395, or you may contact the undersigned at 777-8414. Sincerely, David W. Duffy, Landman Hilcorp Alaska, LLC Enclosures: Figure 1 (Plot); Affidavit, Copy of Certified Mail Receipts; Confidential Exhibits A and B. CC: BLM, CIRI Beaver Creek Unit • • BCU# 19 Spacing Exception 44 April 21, 2014 Page 3 of 6 Figure 1 BCU-19 Spacing Exception Plot 14 BCU 19 Fes` 9) •.a sXe a:* Pane Zwe4. NAD:7 A Tll�r•r�.ilo�L,iLld 1320' Radius from TPI Sterlin :,.I=Dale:V2102014 Beaver Creek Unit • • BCU#19 Spacing Exception April 21, 2014 Page 4 of 6 VERIFIATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET ALASKA BEAVER CREEK FIELD, STERLING GAS POOL WELL BCU # 19 I, DAVID W. DUFFY, Landman, Hilcorp Alaska, LLC, do hereby verify the following: I am acquainted with Hilcorp Alaska, LLC's Application for a Spacing Exception dated April 21, 2014; correspondence with staff regarding spacing requirements related to said work; the Beaver Creek Unit/Field; and Conservation Order 237. I assert all facts outlined in the above -referenced application for a spacing exception are true. I have reviewed the plats attached herein as Exhibit A. This plat correctly portrays the pertinent and required data for the AOGCC to take action on this request. 14- DATED at Anchorage, Alaska this *�, day of April 2014. David W. Duffy, Lan an Hilcorp Alaska, LLC STATE OF ALAKKA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me thisaLt rday of April 2014 STATE (5'�A V/ J ADL� NOTARY PUBLIC ARY PUBLIC IN AND FOR Kevin A. Tabler THE STATE OF ALSKA WCwn Im 1 083AV15,2017 My Commission expires: 5 fl 7 • E Exhibits A and B held confidential in secure storage • m M ru ru m m co CO —0 .0 co 03 0^ 0" • Postage I $ /. Certified Fee C� � '� Postmark O O Return Receipt Fee p p (Endorsement Required) Here O ID Restricted Delivery Fee 171 ED (Endorsement Required) ru ni p ED Total Postage & Fees m m _ Sent To Sharon Yarawsky m m _ Branch of Energy and Minerals r-q r-� Street, Apt No N or PO Box No. Bureau of Land Management cry,'"siaie,zi>= 222 West 7th Avenue, #13 Anchorage, AK 99513 o o � °° � v � 0O u O L L O N V to CO Ca N Q O O_ N Y a � M o� Z4 CZ ° to p U o rev U O v t] -r+ 00 i 0 Rgr rn nm Q4JINn --0 --0 (Domestic Mail Only; No Insurance Coverage Provided) rq r-q M M CO co CIAL U� E CO ro Cr' Er Postage "I- = Certified Fee 30 r=1 M r-9 ED Retum Receipt Fee Postmark C3 0 (Endorsement Required) Here C3 Restricted Delivery Fee 0 ED 17-1 (Endorsement Required) 0 Lr) 0 ru M ru [D Total Postage & Fees $ (1) Ln M M SentToEthan Schutt, Senior Vice President in 0) 0) M M r9 Land Energy < Streetr-q or PO B, Cook Inlet Region, Inc. cu 17� r\- ---------- C"/, Sa 2525 C Street, Suite 500 4� ......... Ln U M '0 Anchorage, AK 99503 t Ul) ) C-4 -C U j U-) LLj _j U r14 <