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Home My WebLink AboutCO 705Ll • 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 _� C:' S Of;der'File Identifier Organizing (done) RESCA ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: NOTES: ❑ Two-sided Ill lllll 11 ill II DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: R.,ca. Naea.a IIIIIIIIIMII IIIIIi OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: ❑ Other:: BY: Angela `5 e>S kA Date: i Z-\ 6_1 t..l /s/ -S, Project ject Proofing BY: Angela �S lA Date: L E '-1 y /s/ '� 5 Scanning Preparation x 30 = + = TOTAL PAGES 3 -L -- (Count does not include cover sheet) BY: Angela S vS �i' 1} Date: Q - I y /s/ Productio n Scanning1111111111111111111 Stage 1 Page Count from Scanned File: %- (Count does include cover sheet) ov Page Count Matches Number in Scanning Preparation: / YES NO BY: Angela �5 u' l 1 Date: I-?-- 16 -t � /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: /s/ Scanning is complete at this point unless rescanning is required. II I II'I II I II II I I III p ReSc anned IIIIIIIIIIIIIIIIIII BY: Angela Date: /s/ Comments about this file: Quality Checked 1111111111111111111 INDEX CONSERVATION ORDER NO. 705 Docket Number: CO-14-026 North Fork Unit No. 24-26 Development Gas Well North Fork Field North Fork Undefined Gas Pool Kenai Peninsula Borough, Alaska 1. October 7, 2014 CIE's application for spacing exception — NFU #24-26 2. October 8, 2014 Email re: Surface Location 3. October 10, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, and mailings 4. October 20, 2014 CIE letter re: Application for Permit to Drill — NFU #24-26 5. November 12, 2014 Email re: Certified Mailing Receipts 6. -------------------- Emails re: Bottom -hole Location INDEX CONSERVATION ORDER NO. 705 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet Energy, LLC for an exception to the spacing requirements of 20 AAC 25.055 (a)(4) to drill and complete a development gas well in a governmental section containing wells that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO-14-026 Conservation Order No. 705 North Fork Unit No. 24-26 Development Gas Well North Fork Field North Fork Undefined Gas Pool Kenai Peninsula Borough, Alaska November 14, 2014 1. By a letter received October 7, 2014, Cook Inlet Energy, LLC (CIE) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(d) allowing drilling and completion of onshore development gas well North Fork Unit No. 24-26 in the North Fork Unit within a governmental section containing wells that are, 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 November 18, 2014. On October 9, 2014, 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, and electronically transmitted the notice to all persons on the AOGCC's email distribution list. On October 10, 2014, the AOGCC mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On October 10, 2014, the notice was published in the ANCHORAGE DISPATCH NEWS. 3. Pursuant to 20 AAC 25.055(d)(1), CIE sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the proposed North Fork Unit No. 24-26 well. CIE provided the AOGCC the notice, date of mailing, and addresses to which the notice was sent. 4. No protest to the application or request for hearing was received. 5. On November 12, 2014, the AOGCC vacated the tentatively scheduled public hearing. 6. Because CIE provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. FINDINGS: 1. CIE is the operator of the proposed North Fork Unit No. 24-26 development gas well, located on the west side of the Cook Inlet, Kenai Peninsula Borough, Alaska. Conservation Order 705 • November 14, 2014 Page 2 of 3 2. The North Fork Unit No. 24-26 will be a deviated development well with an onshore surface location 648 feet from the south line and 1,542 feet from the east line of Section 26, Township 4 South, Range 14 West, Seward Meridian (S.M.). The projected onshore bottom -hole location is 75 feet from the south line and 2,018 feet from the west line of Section 26, Township 4 South, Range 14 West, S.M. 3. The surface location of North Fork Unit No. 24-26 will be situated within State of Alaska leases ADL 391210 and ADL 391211. 4. CIE sent the application on October 7, 2014 by certified mail to all affected owners, landowners, and operators—i.e., State of Alaska and CIE. CIE provided evidence to the AOGCC that the application was received by all addressees. 5. Development gas well North Fork Unit No. 34-26 currently produces from the North Fork Undefined Gas Pool within the same governmental section as, and within 3,000 feet of, the planned well North Fork Unit No. 24-26. 6. North Fork Unit No. 24-26 will be drilled to a structurally advantageous location to recover reserves that are not accessible to existing wells. 7. The AOGCC received no comments, objections or protests in response to the public notice regarding the proposed North Fork Unit No. 24-26 well or to the notification sent by CIE to all known owners, landowners, and operators within 3,000 feet of the North Fork Unit No. 24-26 well. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the North Fork Unit No. 24-26 development gas well. 2. North Fork Unit No. 24-26 will recover gas reserves that are not accessible to existing development wells. 3. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) for the North Fork Unit No. 24-26 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: CIE's October 7, 2014 application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling and completion of the North Fork Unit No. 24-26 development gas well within the North Fork Field, North Fork Undefined Gas Pool is hereby approved as long as CIE complies with the terms of all lease agreements, applicable Alaska laws, and all other legal requirements. Conservation Order 705 • November 14, 2014 Page 3 of 3 DONE at Anchorage, Alaska and dated November 14, 2014. Daniel T. Seamount Jr Commissioner avid fiayberry 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 a weekend or state holiday. Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Monday, November 17, 201411:22 AM To: AKDCWeIIIntegrityCoordinator, Alexander Bridge; Allen Huckabay; Andrew Vandedack, 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); Carrie Wong; Cliff Posey; Colleen Miller, Corey Cruse; 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; Dean Gallegos; Delbridge, Rena E (LAA); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Oskolkosf, George Pollock; ghammons; Gordon Pospisil; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Williams, Jennifer L (LAW); Jerry Hodgden; Jerry McCutcheon; Solnick, Jessica D (LAW); Jim Watt; Jim White; Joe Lastufka; news@radiokenai.com; John Adams; 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; 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 Landt; Mark Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Renan Yanish; Robert Brelsford; Ryan Tunseth; 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; Steve Kiorpes; 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; 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; Diane Richmond; Dickenson, Hak K (DNR); Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Hans Schlegel; 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; Bettis, Patricia K (DOA); Peter Contreras; Richard Garrard; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Todd, Richard J (LAW); Tostevin, Breck C (LAW}; Wayne Wooster; William Hutto; William Van Dyke; Ballantine, Tab A (LAW); Bender, Makana K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha 1 (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Kair, Michael N (DOA); Konkler, Stacey L (DOA); Loepp, Victoria T (DOA); Mayberry, David J (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); Singh, Angela K To: (0); Skutca, Joseph E (DOA); Wallace, Chris IROA) Subject: Conservation Order 705 (North Fork Unit) Attachments: co705.pdf Please see attached. I)arttal'Uha. Carlisle Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) 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 Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.gov. David Hall CEO Cook Inlet Energy, LLC 601 W. 51h Ave., Ste. 310 Anchorage, AK 99501 rR �')L ' Co ri et Angela K. Singh James Gibbs Jack Hakkila Post Office Box 1597 Post Office Box 190083 Soldotna, AK 99669 Anchorage, AK 99519 Gordon Severson Penny Vadla 3201 Westmar Cir. 399 W. Riverview Ave. Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Richard Wagner Darwin Waldsmith Post Office Box 60868 Post Office Box 39309 Fairbanks, AK 99706 Ninilchik, AK 99639 Bernie Karl K&K Recycling Inc. Post Office Box 58055 Fairbanks, AK 99711 George Vaught, Jr. Post Office Box 13557 Denver, CO 80201-3557 dvf`2�l.Qci. 1Jove..Ntiy c� \--c `20�� C)L'-� slz� .Angela K. Singh 0 0 0 Davies, Stephen F (DOA) From: Tim Jones <Tim.Jones@cookinlet.net> Sent: Thursday, November 13, 2014 8:30 AM To: Davies, Stephen F (DOA) Subject: RE: NFU 24-26 Bottom -hole Location Questtion Steve, From our head geologist — The subject well is being planned at its current location in order to capture gas reserves not currently capable of being drained by existing wells in an upthrown fault closure. The well as designed would be between 1500' and 2000' away from the closest well capable of production in existing reservoirs. Multiple objectives have potential for gas production in the proposed well, some of which are not currently being produced in the adjacent wellbores. As designed, the well will be the Northern most well drilled in the fault block. Structural closure in this Fault block strikes North South along the normal fault. A successful completion in the NFU 24-26 well could significantly extend reservoir limits and may prove up one to two more locations. In order to drill a well conforming to current spacing the well would have to penetrate objective sands in Sec 27 T 4S R 14W. As currently interpreted, this would be significantly downdip and most likely below currently established Lowest Known limits for the existing gas reservoirs. A well drilled conforming to current spacing would be a very high risk project and likely would not meet minimum economic criteria. Please let me know if you need any further information. Tim From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, November 12, 2014 2:52 PM To: Tim Jones Subject: NFU 24-26 Bottom -hole Location Questtion Tim, Could CIE provide a brief statement as to why CIE has chosen the planned bottom -hole location for North Fork Unit No. 24-26 rather than drilling the well to a bottom -hole location that conforms to statewide spacing regulations? Please let me know if you have any questions or if I can help further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7tn Avenue, Suite 100 Anchorage, AK 99501 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 unautlf�Fized review, use or disclosure of such informa'tT6n 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. 9 0 • • Davies, Stephen F (DOA) From: Tim Jones <Tim.Jones@cookinlet.net> Sent: Wednesday, November 12, 2014 2:48 PM To: Davies, Stephen F (DOA) Subject: RE: Certified Mailing Receipts for NFU 24-26 Spacing Exception Applications Attachments: SKM BT_C75414111214430.pdf Steve, Here you go. I apologize if I didn't forward these to you earlier. Tim From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Wednesday, November 12, 2014 2:31 PM To: Tim Jones Subject: Certified Mailing Receipts for NFU 24-26 Spacing Exception Applications Could CIE please provide the AOGCC with copies of the Certified Mailing Receipts for the spacing exception applications sent by CIE to all owners and landowners within 3000' of the proposed well? Thanks, 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. ■ Complete items f, and 3. Also complete item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the maliplece, or on the front If space permits. 1. Article Addressed to: COOK INLET ENERGY LLC 601 W 5T" AVENUE SUITE 310 ANCHORAGE AK 99501 A. X ❑ Agent D. Is delivery address differerif from itdm 1? fu Yu3 if YES, enter delivery address below: ❑ No 3. Service Type 0 Certified Matt' GI Priatty Mall Express"' ❑ Registered ❑ Return Receipt for Merchandise ❑ Insured Mali C] Collect on Del" 4. Restricted Delivery? (laths Fee) 13 Yes 2. Article Number 7 014 0150 0001 6 012 7001 (%ansfer from aenvks label} Ps Form 3811, July 2013 Domestic Return Receipt ■ Complete items 1, 2, _. id 3. Also complete Item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front If space permits. 1. Article Addressed to: STATE OF ALASKA DEPT OF NATURAL RESOURCES ALASKA DIVISION OF OIL AND GAS 550 W 7T" AVENUE SUITE 1100 ANCHORAGE AK 99501-3560 A Signature f\ o `,� QQ 0 �t X �Mk► O Adit B. Received g C- 90 oyDell D. Is delivery address different from itemA? P..t` Yes If YES, enter delivery address below: CI NO 3. Service Type — ❑ Certified Mats° ❑ Prkuity Mail Express'" 13 Reglifted 0 Return Receipt for Merchan4w CI Insured Mail ❑ Collect on Delivery 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. APocie Number 7 014 0150 0001 6 012 6998 (lransferfrom service labep PS Form 3811, July 2013 Domestic Return Receipt 0 0 • Cook Inlet Energy October 20, 2014 Alaska Oil and Gas Conservation Commission Ms. Cathy Foerster, Chair 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Application for Permit to Drill — Cook Inlet Energy, LLC — NFU#24-26 Ms. Foerster: O C T 2 12014 Cook Inlet Energy, LLC ("CIE") recently applied for a Permit to Drill an onshore gas production well, the NFU #24-26. CIE also recently submitted a request for a spacing exception for NFU #24-26 in accordance with 20 AAC 25.055(a)(4). In the past, CIE has made application for the drilling of a well that requires an exception to the spacing requirements in 20 AAC 25.055, and a Permit to Drill was approved that allowed CIE to drill the well while the public process for the spacing exception request was ongoing. This drilling was done with the understanding that CIE would not be allowed to complete or test the well until the spacing exception was granted, and there was a risk that an exception would not be granted and the well would have to be abandoned. CIE has recently been informed this practice is no longer standard and a Permit to Drill will not normally be approved until a spacing exception has been granted, if one is required. CIE understands the reasoning for this policy in areas where there is high potential for waste or correlative rights issues. However, The NFU #24-26 well is much farther from a property line where ownership or landownership changes than the 1,500 feet required by 20 AAC 25.055(a)(2). This fact makes correlative rights issues very unlikely. In addition, there are several target zones CIE intends to drill through with this well, including several that may not be in communication with any other wells completed within Section 26 or wells within 3,000 feet per 20 AAC 25.055(a)(4). This fact, coupled with other geological features of the North Fork structure, makes waste of the resource very unlikely. Longer term, CIE intends to make application to the AOGCC for pool rules in accordance with 20 AAC 25.520 to modify the standard spacing requirements in 20 AAC 25.055. This application will allow the AOGCC to fully consider all issues related to preventing waste, protecting freshwater, protecting correlative rights, and ensuring a greater ultimate recovery of oil and gas. If established by the Commission, pool rules will mostly eliminate further spacing exception requests at North Fork and allow for the efficient and timely development of the field. 601 W 5th Ave., Suite 310, Anchorage, AK 99501 • For the reasons stated above, CIE respectfully requests that the Commission approve the Permit to Drill for NFU #24-26 and allow us to drill and complete, but not flow the well prior to receiving a spacing exception. If you have any questions, or need any additional information to help in your decision regarding this request, please do not hesitate to contact me. We appreciate your consideration. Sincerely, David Hall CEO Date Modified: 10/17/14 Date Prepared: 10/16/14 Macintosh HD: users:dhaii:Library:Caches:Temporaryltems:Outlook Temp:20141016 Letter to Foerster Re NFU 24- 26.docx 3 • Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-026. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete a development gas well in a governmental section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received October 7, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(d) allowing drilling and completion of onshore development gas well NFU #24-26 in the North Fork Unit within a governmental section containing wells that are, or may be capable of, producing from the same pool NFU #24-26 Surface Location: 648' from the south line and 1542' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Bottom -hole Location: 75' from the south line and 2018' from the west line of Section 26, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for November 18, 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 October 23, 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 November 1, 2014. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7t" Ave., Ste 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 12, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the November 18, 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 November 13, 2014. Cathy P. Foerster Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OFADVERTSMENT. ADVERTISING ORDER NUMBER AO-15-003 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O. 1(907) AGENCY PHONE: 793-1221 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: Please publish 10-10-14 FAX NUMBER: (907)276-7542 TO PUBLISHER: SPECIAL INSTRUCTIONS: k��3" CLASS ..OTHER (Specify below LEGAL DI wP;g ( P tY DESCRIPTION ) PRICE CO 14-26 Initials of who prepared AO: Alaska Non -Taxable 92-600185 ........................ " St$bilTp�yolG$:SIIO�VING;AI?YERTJ... . :,.O:RDER:NO.,. CERTIFIED AFFIDAVIT OF: .; EiJgLIEATION;WITH ATTACHED COPY 10Y .................................. Department of Administration Division Of AOGCC 333 west 7th Avenue Anchorage, Alaska 99501 Page 1 of 1 Total Of All Pa es $ - REF Type Number Amount Date Comments 1 PVN 2 AO 3 4 FIN AMOUNT SY CC PGM LGR ACCT FY DIST LIQ 1 2 3 4 5 Purchasing Authority Name: Title: Purchasing Authority's Signature Telephone Number 1. A.O. # and receiving agency name must appear on all invoices and documents relating to this purchase. 2. The state is registered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the state and not for resale. .......... .'''' :::::: iii iii::::::::: iii::::: ii:... ; ....... ... RI.T......1.................................' ...:..................... .... .seal :Re eeiviri :: a: 'ed DI ISI ri Fi $Iishei• f x I)IVI..........1/Orlglnal:;A© .:::.. . .....:.:. I . ..... ), ....... Form:02-901 Revised: 10/9/2014 270227 0001335804 $ 254.00 RECEIVED AFFIDAVIT OF PUBLICATION OCT 16 2014 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kayla Lavea being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on October 10, 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. E _4W W P. -• Subscribed and sworn to before me this 10th day of October, 2014 Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES AOGCC Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-026. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete a development gas well in a governmental section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received October 7, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(d) allowing drilling and completion of onshore development gas well NFU #24-26 In the North Fork Unit within a governmental section containing wells that are, or may be capable of, producing from the same pool. NFU #24-26 Surface Location: 648' from the south line and 1542' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Bottom -hole Location: 75' from the south line and 2018' from the west line of Section 26, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for November 18, 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 October 23, 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 November 1, 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 November 12, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the November 18, 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 November 13, 2014. AO-15-003 Published: October 10, 2014 Cathy P. Foerster Chair, Commissioner Y • • Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, October 09, 20141:05 PM To: Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Guhl, Meredith D (DOA); Hunt, Jennifer L (DOA); Kair, Michael N (DOA); Loepp, Victoria T (DOA); Mayberry, David J (DOA); Mumm, Joseph (DOA sponsored); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator; Alexander Bridge; Andrew Vandedack; 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); Carrie Wong; Cliff Posey, Colleen Miller, Corey Cruse; 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; Dean Gallegos; Delbridge, Rena E (LAA); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer; Frank Molli; Gary Oskolkosf; George Pollock, ghammons; Gordon Pospisil; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jones, Jeffery B (DOA); Williams, Jennifer L (LAW); Jerry Hodgden; Jerry McCutcheon; Solnick, Jessica D (LAW); Jim White; Joe Lastufka; news@radiokenai.com; John Adams; 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; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nichole Saunders; 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; Renan Yanish; Robert Brelsford; Ryan Tunseth; 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; Richmond, Diane M; 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; William Hutto; William Van Dyke Subject: Notice of Public Hearing, CO-14-026 (CIE) Attachments: A of Public Hearing, CO-14-026.pdf 0 0 0 CIRI Land Department James Gibbs Jack Hakkila Post Office Box 93330 Post Office Box 1597 Post Office Box 190083 Anchorage, AK 99503 Soldotna, AK 99669 Anchorage, AK 99519 Bernie Karl K8eK Recycling Gordon Severson Penny Vadla x Inc.c. 3201 Westmar Cir. 399 W. Riverview Ave. Post Office Bo Fairbanks, AK 580 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Richard Wagner Darwin Waldsmith Post Office Box 13557 Post Office Box 60868 Post Office Box 39309 Denver, CO 80201-3557 Fairbanks, AK 99706 Ninilchik, AK 99639 David Hall CEO Cook Inlet Energy, LLC 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 CO Q:1'Z:f"k'D 'S.c �c-' ` 2Q\"-(- Angela K. Singh 0 0 Davies, Stephen F (DOA) From: Tim Jones <Tim.Jones@cookinlet.net> Sent: Wednesday, October 08, 2014 4:17 PM To: Davies, Stephen F (DOA) Subject: surface location for NFU #24-26 - Req for Spacing Exception Steve, Thanks for speaking with me today. The surface location for the proposed NFU #24-26 well is 648 feet from the south line and 1,542 feet from the east line of Section 26, T. 4S., R 14W., Seward Meridian. Tim )ones, RPL Senior Landman Cook Inlet Energy, LLC 601 W. 5th Ave., Suite 310 Anchorage, AK 99501 Office: (907) 433-3811 Cell: (907) 350-7426 t keInlet FlEinerg 0 0 Cook Inlet Energy_ A Wholly Owned Subsidiary of Miller Energy Resources October 7, 2014 Alaska Oil and Gas Conservation Commission 333 West 7"' Ave., Suite 100 Anchorage, Alaska 99501 Re: Spacing Exception for the Proposed NFU #24-26 Well Dear Commissioners, OCT 0 8 2014 A®GCC Cook Inlet Energy, LLC (CIE) hereby applies for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(4). Specifically, CIE requests approval to drill a gas development well, NFU #24-26, into a governmental section which contains other gas wells producing or capable of producing from the same pool. CIE proposes to drill the NFU #24-26 Well from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M. at 59' 47' 46.96" N and 151 ° 37' 46.655" W, NAD 27 datum. The NFU #24-26 Well will have a bottomhole location within Section 26, T. 4 S., R. 14 W., S.M., 75 feet from the south line and 2,018 feet from the west line. The top of the Tyonek productive zone is anticipated to fall roughly 180 feet from the south line and 2,292 feet from the west line of Section 26. CIE is planning to test and potentially produce from zones within Section 26, T. 4 S., R. 14 W., S.M. The attached Exhibit A lists the Landowners, Owners, and Operators within 3,000 feet of the NFU #24-26 Well and their contact information. The attached Exhibit B is a plat showing the location of NFU #24-26 and all other completed wells on the property, at a scale which complies with 20 AAC 25.055(d)(2). The attached Exhibit C is the Notice provided to Landowners, Owners and Operators by certified mail. The attached Exhibit D is an affidavit from Mr. Tim Jones, Registered Professional Landman # 84167 and Senior Landman for CIE, verifying the plat and facts contained herein. Respectfully, , David Hall CEO 601 W. 51 Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 fax 0 0Spacing Excepor Proposed NFU #24-26 Well October 7, 2014 EXHIBIT A Landowner Owner Operator As defined in As defined in As defined in Legal Description AS 31.05.170(7) AS 31.05.170(10) 20 AAC 25.990 (46) State of Alaska Cook Inlet Cook Inlet ADL 391210 14 W., TRACT B, SEWARD MERIDIAN, Energy, LLC Energy, LLC ALASKA. Segment I SECTION 28: SURVEYED, E2, 320.00 ACRES; SECTION 33, SURVEYED, E2, 320.00 ACRES; SECTION 34, SURVEYED, ALL, 640.00 ACRES; CONTAINING 1,280.00 ACRES, MORE OR LESS. Segment 2 SECTION 35: SURVEYED, SE4, W2, 480 ACRES; CONTAINING 480.00 ACRES, MORE OR LESS. Segment 3 SECTION 35, SURVEYED, NE4, 160.00 ACRES; CONTAINING 160.00 ACRES, MORE OR LESS. State of Alaska Cook Inlet Cook Inlet ADL 391211 Energy, LLC Energy, LLC TAS., R.14W., Seward Meridian, Alaska Section 23: Surveyed, all, 640.00 acres; Section 24: Surveyed, all, 640.00 acres; Section 26: Surveyed, all, 640.00 acres; Section 27: Surveyed, E2, E2W2, W2SW4, SW4NW4, 600.00 acres; Containing 2,520.00 acres, more or less. Contact Information: State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99503 907-269-8800 Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 907-334-6745 CERTIFIED MAIL 7014 0150 0001 6012 6998 CERTIFIED MAIL 7014 0150 0001 6012 7001 0 0Spacing Excepor Proposed #NFU 24-26 Well October 7, 2014 EXHIBIT B T. 4 S., R. 14 ., S.M. Top of Tyonek I Productive Zone 1,500 ft. 34-26 NFU-24- 1'4"25 1,500 ft. Ttity:•: ails 41-35 TY-49%A 4114 32-35 22-35 3 NFU-42-35 sc.x., ,orx Spacing Excep0or Proposed #NFU 24-26 Well October 7, 2014 EXHIBIT C _ Cook Inlet Energy_ A Wh*owned Sebwa of KRer Energy Resource October 7, 2014 Landowners, Owners and Operators See Distribution List West Foreland Area Cook Inlet Basin, Alaska Re: Notice Under 20 AAC 25.055(d) of Cook Inlet Energy, LLC's Application for a Spacing Exception for the Drilling of the NFU #24-26 Well Dear Landowner, Owner and/or Operator Cook Inlet Energy, LLC (CIE) is applying for a Spacing Exception under 20 AAC 25.055(d) and this Notice is being sent by certified mail to meet the notification requirements under 20 AAC 25.055(d). Specifically, CIE has submitted a Permit to Drill for the NFU #24-26 Well and is applying for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(4). CIE plans to drill the NFU #24-26 Well for gas within the same governmental section of another well capable of producing from the same pool. CIE proposes to drill the NFU #24-26 Well from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M. The NFU #24-26 Well will have a bottomhole location within Section 26, T. 4 S., R. 14 W., S.M., 75 feet from the south line and 2,018 feet from the west line. CIE is planning to test and potentially produce from zones within Section 26, T. 4 S., R. 14 W. The SE quarter of Section 26 contains another well, NFU #34-26, capable of or producing from the same pool. CIE, through a search of the public record, has identified you as a Landowner, Owner or Operator (as defined in AOGCC regulations) within 3,000 feet of the proposed NFU #24-26 Well. Please conta� me should you require additional information. 4 Tim Jc Senior Distribution List: Alaska Division of Oil and Gas Cook Inlet Energy, LLC 601 W. 5"' Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 tax Spacing Exce*or Proposed #NFU 24-26 Well October 7, 2014 EXHIBIT D Affidavit State of Alaska, Third Judicial District Personally appeared before me, Timothy Jones, who, being duly sworn according to law, deposes and says: I, Timothy Jones, am a Senior Landman for Cook Inlet Energy, LLC and a Registered Professional Landman #84167. 2. I have prepared the foregoing Exhibits following a thorough review of land status records at the State of Alaska, Department of Natural Resources, Division of Oil and Gas, the Kenai Peninsula Borough, and the State Recorder's Office for the Homer Recording District. 3. The Landowners, Owners and Operators, as defined in relevant state statutes and regulations, identified in Exhibit A are the result of that record search and correct to the best of my knowledge. 4. The well location was taken from Cook Inlet Energy, LLC's Permit to Drill submitted to AOGCC. 5. The Notice in Exhibit C was sent to the Landowners, Owners and Operators identified in Exhibit A by certified mail. Further the affiant sayeth naught. Timothy J RPL #841 UNITED STATES OF AMERICA § STATE OF ALASKA Date Subscribed and sworn to before me on the (r' day of October, 2014. e ,a a • f LASKA PUBLIC _was^ -'NA L. LEWIS Notary Public Imi "`.,—njssioc wpires Jan. 18, 2om My commission expires: `1 = Qo,10