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INDEX CONSERVATION ORDER NO. 708
1. June 24, 2014 Hilcorp's application for spacing exception — Paxton #6
(confidential Exhibit B held in secure storage)
2.-------------------- Emails re: Spacing Exception Application
3. June 25, 2014 Notice of Public Hearing, Affidavit of Publication, email
distribution, and mailings
4.-------------------- Emails re: Spacing Exception Notifications
5. November 7, 2014 Email re: Spacing Exception Cancellation
INDEX CONSERVATION ORDER NO. 708
0
Davies, Stephen F (DOA)
From: Luke Keller <Ikeller@hilcorp.com>
Sent: Friday, November 07, 2014 11:18 AM
To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA)
Cc: Luke Saugier; David Duffy; Chad Helgeson; David Buthman; Jeff Allen; Kate Kaufman;
Larry Greenstein
Subject: Paxton #6 and Frances #2 PTD & Spacing Exception Cancellation
Guy/Steve,
Hilcorp Alaska, LLC would like to cancel the Drilling and Spacing Exception permit applications for Paxton #6 and Frances
#2. My records indicate Frances #2 was approved July 21st, 2014.
We do not intend to drill either of these wells in the next 12 months and want to avoid the AOGCC wasting any
additional resources on these requests.
Please contact me if you have any questions about this.
Thank you,
Luke Keller
Drilling Engineer
Hilcorp Alaska, LLC
907-777-8395
0 0
Davies, Stephen F (DOA)
From: Davies, Stephen F (DOA)
Sent: Thursday, October 30, 2014 4:28 PM
To: 'David Duffy'
Cc: Colombie, Jody J (DOA)
Subject: Ninilchik Unit: Paxton No. 6 (PTD # 214-074) Spacing Exception Notifications
David,
I am working through the Paxton 6 Permit to Drill application and the corresponding spacing exception file, and I'd
summarize events to date to clarify the record.
Conservation Order No. 701 (CO 701) was issued on September 18, 2014, well after Hilcorp's application for exception
(application) to statewide well spacing rules was received by AOGCC (on June 24, 2014). CO 701 Rule 3,* Well Spacing,
now governs Paxton 6. Based on your October 24, 2014 email (below), AOGCC currently understands that there are no
longer any unleased tracts within 1500' of the Paxton 6 well. However, Paxton 6 still requires a spacing exception
because it will violate Rule 3A of CO 701: the lower portion of the potentially productive interval and the total depth of
Paxton 6 will lie within 1500' of the exterior boundary of the CO 701 Affected Area where landownership changes across
the property lines for several land parcels.
Looking back through our email correspondence, it appears as though most of the affected parties received copies of
Hilcorp's June 24, 2014 application via certified mail. However, nine of those applications were returned as
undeliverable (A. Reina, G. Johnson, G. Ropelato, G. Maki, R. Jackinsky, R. Flygenring/C. King, S. Jackinsky, S./M. Wilson,
and W. Wilson) and two of the affected parties (J. and E. Pherson joint landowners for Tract 184) are unfortunately
deceased. Two parties subsequently signed leases with Hilcorp, committing their tracts to the Ninilchik Unit (R.
Johnson, Tract 184-100% landowner, and G. Maki.) Hilcorp reports that R. Johnson received a copy of the spacing
exception application. Hilcorp also reports that copies of the application subsequently sent via uncertified mail to A.
Reina, G. Johnson, G. Ropelato, G. Maki, R. Flygenring/C. King, S./M. Wilson, and W. Wilson were not returned to Hilcorp
as undeliverable.
Two notifications appear to remain outstanding:
1. The application sent via certified mail to S. Jackinsky was returned unclaimed, and the application subsequently
sent via uncertified mail was returned to Hilcorp due to an incorrect address. Has Hilcorp made any further
attempts establish the correct address for Mr. Jackinsky or to contact him?
2. The original application sent via certified mail to R. Jackinsky was reportedly refused and returned. Hilcorp
appears to have made no follow-up attempt to contact Ms. Jackinsky. Did Hilcorp attempt to send a copy of the
application to Ms. Jackinsky via uncertified mail or was any further attempt made to contact her?
One additional question since I have no easy way to check ownership for privately held lands: Is Hilcorp the owner** of
all properties within 1500' of Paxton 6?
Thank you for your help,
Steve Davies
AOGCC
* Rule 3 Well Spacing
There shall be no gas well spacing restrictions within the Affected Area, except:
A) No gas well shall be drilloor completed less than 1,500 feet from the eOior boundary of the Affected Area unless
the owner and landowner is the same on both sides of the line.
B) No gas well shall be drilled or completed less than 1,500 feet from an uncommitted tract within the Ninilchik Unit
unless the well and the uncommitted tract both lie within the same Participating Area.
** 20 AAC 25.990(47) and 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.
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: Friday, October 24, 2014 2:05 PM
To: Davies, Stephen F (DOA)
Subject: RE: Ninilchik Unit: Paxton No. 6 and Frances No. 2 Spacing Exception Notifications
Steve
By coincidence, the 100% mineral owner of Ninilchik Unit Tract 184 (Richard Johnson) signed an oil and gas lease with
Hilcorp. This eliminated the previously unleased tract within 1500' of Pax 6. 1 also confirmed Mr. Johnson received a
copy of our spacing exception application. If you wish to personally verify this, please call Mr. Johnson at 907-623-0635.
Regards,
David Duffy, Landman
Hilcorp Alaska, LLC
Direct: 907-777-8414
Cell: 907-301-2629
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) [mailto:steve.davies@alaska.gov]
Sent: Friday, October 24, 2014 9:41 AM
To: David Duffy
Subject: RE: Ninilchik Unit: Paxton No. 6 and Frances No. 2 Spacing Exception Notifications
David,
To ensure protection of the correlative rights of all owners and landowners in the vicinity of the Paxton No. 6 and
Frances No. 2 wells, AOGCC will re -publish the Notices of Public Hearing for Hilcorp's spacing exception applications for
those wells. Prior to publishing these notices, AOGCC must be provided with either proof of notification to all parties
whose original applications were returned to Hilcorp, including the heirs to, or new mineral interest owners of, the
properties of William Wallner and John and Ethel Pherson or a description of the efforts undertaken to provide notice to
those parties, including the efforts to ascertain their identities.
Davies, hF
From: David Duffy ^dduffx@hi|corpzom^
Sent: Friday, Dctober24, 2014 2:05 PM
To: Davies, Stephen F(DOA)
Subject: RE: Nini|chikUnit: Paxton No. 6and Frances No. 2Spacing Exception Notifications
By coincidence, the 100% mineral owner of Ninilchik Unit Tract 184 (Richard Johnson) signed an oil and gas lease with
Hi|corp. This eliminated the previously un|easedtract within 15OO'ofPax 6. \ also confirmed Mr. Johnson received a
copy ofour spacing exception application, If you wish to personally verify this, please call Mr. Johnson at 907-623-0635.
David Duffy, Landman
HUcorpAlaska, LLC
Direct: 907-777-8414
Cell: 907-301-2629
This email may contain confidential and /mprivileged information
and isintended for the recpient(s)only. |nthe event you receive
this message in error, please notify me and delete the message.
From: Davies, Stephen F(DOA) [rnaiIto:steve.davies@alaska.gov]
Sent: Friday, October 24, 20149:41AM
To: David Duffy
Subject: RE: Ninilchik Unit: Paxton No. 6 and Frances No. 2 Spacing Exception Notifications
To ensure protection of the correlative rights of all owners and landowners in the vicinity of the Paxton No. 6 and
Frances No. 2 wells, AOGCC will re -publish the Notices of Public Hearing for Hilcorp's spacing exception applications for
those wells. Prior to publishing these notices, ACIGCC must be provided with either proof of notification to all parties
whose original applications were returned to Hilcorp, including the heirs to, or new mineral interest owners of, the
properties of William Wallner and John and Ethel Pherson or a description of the efforts undertaken to provide notice to
those parties, including the efforts toascertain their identities.
Thanks,
Steve Davies
AOGC[
CONFIDENTIALITY NOTICE: Thbe'nnaUmessage,indodinAanyuttachments,monta\noinfonnadonhnmtheA]askaCh|andGas
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
ofthe mistake insending ittoyou, contact Steve Davies at9O7'793-1224or .
From: David Duffy
Sent: Tuesday, October 31,2U142:Z1PI4
To: Davies, Stephen F(DDA)
Cc: Christine Gay '(C)
Subject: RE: Nin||ch|kUnit: Paxton No. 6 Spacing Exception Notifications
Steve —
Just an FYI. | talked to the owners ofun|eased Nini|chik Unit Tract 184today. Mr. Johnson (100% mineral owner) has
accepted our lease proposal and we expect to have all the documents signed within the week. This will eliminate the
only un|eased tract within 1500' nfPax 6.
DavdDuffy, Landman
Hi|corpA|aska, LLC
Direct: 907'777'8414
Cell: 907'301-2629
This emailm contain confidential and / or privileged information
and bintended for the ed[ient(s)only. |nthe event you receive
this message in error, please notify me and delete the message.
From: David Duffy
Sent: Friday, October O3, 20145:50PM
To: 'Davies, F(DOA)'
Cc: Christine Gay ' (C)
Subject: RE: Ninilchik Unit: Paxton No. 6 Spacing Exception Notifications
Steve,
The N\ni|chik Unit exhibit lists two joint owners of unleased Unit Tract 184. The first owners (John and Ethel Pherson,
7S96interest) are deceased and w/ehad norecord oftheir heirs. However, the second record owner, Carol Pickett
(25%), was sent a certified copy of the application. Ms. Pickett's notice was not returned as undeliverable.
Since the issuance of CO 701, we have pushed hard to identify all missing landowners/heirs and provide an opportunity
toenter alease. This included running anew title search onUnit Tract 184. Just yesterday, vvelearned that the entire
estate (100Y6)iscurrently owned byRichard Lee and Jeannie Lou Johnson.
I've attached a copy of a lease proposal letter that was just sent to the Johnston's in today's mail kexplains why |did
not send them timely notice ofour spacing exception application last June /ie,didn't know they were the true
owners). For the record, Chris also sent them a certified copy of the application and I've provided them your contact
information.
I appreciate your diligence — and I'll keep you updated on the status as things progress. Have a good weekend.
0
0
Davies, Stephen F (DOA)
From: David Duffy /dduffv@hi|corpzom^
Sent: Friday, October O3.2OI4S:5OPK4
To: Davies, Stephen F (DOA)
Cc: Christine Gay -([)
Subject: RE: Nini|chikUnit: Paxton No. 6Spacing Exception Notifications
Attachments: Document.pdf
Steve,
The Nini|chikUnit exhibit lists two joint owners nfun|easedUnit Tract lD4. The first owners (John and Ethel Pherson,
75%interest) are deceased and wehad norecord oftheir heirs. However, the second record owner, Carol Pickett
(25Y6), was sent acertified copy ofthe application. Ms. Pickett'snotice was not returned asundeliverable.
Since the issuance of CO 701, we have pushed hard to identify all missing landowners/heirs and provide an opportunity
toenter alease. This included running anew title search onUnit Tract 1O4. Just yesterday, welearned that the entire
estate (100%) is currently owned by Richard Lee and Jeannie Lou Johnson.
I've attached a copy of a lease proposal letter that was just sent to the Johnston's in today's mail |texplains why |did
not send them timely notice of our spacing exception application last June (i,e,, didn't know they were the true
owners). For the record, Chris also sent them a certified copy of the application and I've provided them your contact
information.
I appreciate your diligence — and I'll keep you updated on the status as things progress. Have a good weekend.
EMS
From: Davies, Stephen F(DOA) [mai|to:steve.davem@alaaka.gov]
Sent: Friday, October 03,20143:35PM
To: David Duffy
Cc: Christine Gay '(C)
Subject: RE: Ninilchik Unit: Paxton No. 6 Spacing Exception Notifications
David,
Thanks toyou and Christine for providing the list ofnotifications. Under the listing for Richard and Jeannie Johnson,
what does ^Pendin8,mean regarding the notification?
As I recall, there is one uncommitted tract in the vicinity of the proposed Paxton No. 6 well. What isthe number ofthe
uncommitted tract ortracts? Who are the owners ofthose uncommitted tracts? Were they provided acopy ofthe
application for spacing exception for Paxton No. 6? Was that application returned asundeliverable?
Thanks,
Steve Davies
Senior Petroleum Geologist
Alaska Oil and Gas Conservation Commission (A0GCC)
Phone: 907r93-1224
•
•
AOGCC: 907-279-1433
Fax: 907-276-7542
333 West 71h 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 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: Christine Gay - (C) [maiIto: cgay@hilcorl).com]
Sent: Friday, October 03, 2014 2:46 PM
To: Davies, Stephen F (DOA)
Cc: David Duffy
Subject: Ninilchik Unit: Paxton No. 6 Spacing Exception Notifications
RE: Ninilchik Unit
Paxton No. 6
Application for Spacing Exception
Notifications to Lessors
Steve,
In regards to your recent inquiry, the following is the list of notifications that were returned and resent.
Arthur D. Reina:
Notification
Mailed
Notification Address
Notification
Returned
Reason for
Return
Resent
6/24/2014
Arthur d. Reina
Yes
Unclaimed
Yes
c/o Dan Reina
148 Maple Ave
Snohomish, WA 98290
7/22/2014
Arthur d. Reina
No
n/a
n/a
Non -certified
c/o Dan Reina
148 Maple Ave
Snohomish, WA 98290
Gailan B. Johnson:
Notification
Mailed
Notification Address
Notification
Returned
Reason for
Return
Resent
6/24/2014
Gailan B. Johnson
Yes
Unclaimed
Yes
6710 Elmore Road
Anchorage, AK 99507
8/14/2014
Gailan B. Johnson
No
n/a
n/a
Uncertified
PO Box 39108
Ninilchik, AK 99639
Davies, Stephen F (DOA)
From: Christine Gay - (C) <cgay@hilcorp.com>
Sent: Friday, October 03, 2014 2:46 PM
To: Davies, Stephen F (DOA)
Cc: David Duffy
Subject: Ninilchik Unit: Paxton No. 6 Spacing Exception Notifications
RE: Ninilchik Unit
Paxton No. 6
Application for Spacing Exception
Notifications to Lessors
Steve,
In our regards to recent inquiry, the following is the list of notii�cations that re ret}}�� fd and f t. .
g Y rle� le
Arthur D. Reina: ov
Notification
Mailed
Notification Address
Notification
Returned
Reason for
Return
Resent
6/24/2014
Arthur d. Reina
Yes
Unclaimed
Yes
c/o Dan Reina
148 Maple Ave
Snohomish, WA 98290
7/22/2014
Arthur d. Reina
No
n/a
n/a
Non -certified
c/o Dan Reina
148 Maple Ave
Snohomish, WA 98290
Gailan B. Johnson:
Notification
Mailed
Notification Address
Notification
Returned
Reason for
Return
Resent
6/24/2014
Gailan B. Johnson
Yes
Unclaimed
Yes
6710 Elmore Road
Anchorage, AK 99507
8/14/2014
Gailan B. Johnson
No
n/a
n/a
Uncertified
PO Box 39108
Ninilchik, AK 99639
Gloria Ropelato:
Notification
Notification Address
Notification
I
Reason for
I
Resent
Mailed
I
Returned
Return
1
6/24/2014 Gloria Ropelato• Yes Unclaimqel Yes
3954 W. 1400 S.
Ogden, UT 84401-9062
7/23/2014 Gloria Ropelato No n/a n/a
Uncertified 3954 W. 1400 S.
Oeden, UT 84401-9062
George Maki:
Notification
Notification Address
Notification
Reason for
Resent
Mailed
Returned
Return
6/24/2014
George Maki
Yes
Unclaimed
Yes
c/o Gloria Ropelato
3954 W. 1400 S.
Ogden, UT 84401-9062
7/23/2014
George Maki
No
n/a
n/a
Uncertified
c/o Gloria Ropelato
3954 W. 1400 S.
Ogden, UT 84401-9062
9/3/2014
George R. Maki, Jr.
No
n/a
n/a
Signed Lease
681 Cassidy Drive
8/18/2014
Durango, CO 81303
John and Ethel Pherson/Richard Lee and Jeannie Lou Johnson:
Notification
Mailed
Notification Address
Notification
Returned
Reason for
Return
Resent
n/a
John and Ethel Pherson-
n/a
n/a
n/a
Deceased
10/3/2014
Richard Lee and Jeannie Lou
Pending
n/a
n/a
New Mineral
Johnson
Owner (2011)
PO Box 39113
Ninilchik, AK 99639-0113
Risa Jackinsky:
Notification
Notification Address
Notification
Reason for
Resent
Mailed
Returned
Return
6/24/14
Risa Jackinsky
Yes
Refused
n/a
4014 Ben Walters Lane, Apt
C8
Homer, AK 99603
Robert Flygenring and Cheryl King:
Notification I Notification Address I Notification I Reason for I Resent
Ah
rn
Mailed
Returned
Re urn
6/24/14
Robert Flygenring and Cheryl
Yes
Unclaimed
Yes
King
926 W 80'' Ave
Anchorage, AK 99518
7/21/2014
Robert Flygenring and Cheryl
No
n/a
n/a
Uncertified
King
926 W 80'' Ave
Anchorage, AK 99518
Shawn W. Jackinsky, Sr.:
Notification
Notification Address
Notification
Reason for
Resent
Mailed
Returned
Return
6/24/2014
Shawn W. Jackinsky, Sr.
Yes
Insufficient
Yes
PO Box 220426
Address
Anchorage, AK 99522
7/1/2014
Shawn W. Jackinsky, Sr.
Yes
Unclaimed
Yes
PO Box 872575
Wasilla, AK 99687
8/8/2014
Shawn W. Jackinsky, Sr.
Yes
Wrong Address
No
Uncertified
PO Box 872575
Wasilla, AK 99687
Shawn and Myrle Wilson:
Notification
Notification Address
Notification
Reason for
Resent
Mailed
Returned
Return
6/24/2014
Shawn and Myrle Wilson
Yes
Address Unknown
Yes
6230 Spruce Meadows Drive
Anchorage, AK 96507
7/1/2014
Shawn and Myrle Wilson
Yes
Unclaimed
Yes
6230 Spruce Meadows Drive
Anchorage, AK 99507
8/27/2014
Shawn and Myrle Wilson
Yes
Attempted -Not
Yes
Uncertified
6230 Spruce Meadows Drive
Known
Anchorage, AK 99507
9/3/2014
Shawn and Myrle Wilson
No
n/a
n/a
Uncertified
8312 N. Highlander Loop
Palmer, AK 99645-8016
Walter L. Wilson:
Notification
Notification Address
Notification
Reason for
Resent
Mailed
Returned
Return
6/24/14
Walter L. Wilson
Yes
Not deliverable as
Yes
PO Box 264
addressed
Ah
Ah
Southworth, WA58386-0264
IMF
7/7/14
Walter L. Wilson
No
n/a
n/a
91 Good Times Drive
Las Cruces, NM 88005
Copies of the backup documents are available on request. Please feel free to contact me (or David Duffy at
(907) 777-8414) with any questions or concerns you might have regarding these notifications.
- Chris Gay
Chris Gay
Hilcorp
Land Contractor
Phone: 907-777-8432
Email: cgav@hilcorp.com
C,
E
11,11corp Alaska, LLC
RE: Oil & Gas Lease Proposal
Ninilchik Unit
Dear Mr. and Ms. Johnson:
Post Office Box ?44027
Anchorage, AK 99524-4027
3800 Centerpoint Delve
Suite 1400
Anchorage, AK 99503
Phone: 907-777-8414
Fax: 907-777-8580
dduffy0hilcorp.corn
In 2013 Hilcorp Alaska, LLC ("Hilcorp") acquired various oil and gas fields in the vicinity of
Cook Inlet, Alaska. Since taking over as operator, we have been working hard to update the land
title (i.e., ownership) records within the unit boundary.
Our research indicates that you own 100% of the mineral rights on approximately 5.424 acres
within Township I South, Range 14 West, Seward Meridian, Alaska. Previously, we believed
this property was owned by John and Ethel Pherson (75%) and Carol Pickett (259/4). This
property is located within the Ninilchik Unit, but outside of currently producing areas.
Hilcorp is actively developing plans to explore this area for natural gas, but we have not yet
drilled any wells on or nearby your property. However, on June 24, 2014, Hilcorp did file an
application for a spacing exception with the Alaska Oil and Gas Conservation Commission
("AOGCC7'). Under applicable state regulations, this notice is required to be sent to all
landowners of record within 3000 feet of a proposed well. Unfortunately, we had not yet
identified you as the heirs to the Pherson estate. As a result, you did not receive timely notice. I
personally apologize for this inconvenience.
Yesterday, (October 2, 2014), my office sent you a certified copy of an application we filed with
the Alaska Oil and Gas Conservation Commission to test and produce a proposed exploration
well located near your property. I have also included a copy of the application in this package.
If you have any questions regarding our application, please feel free to contact me directly. You
may also contact Steve Davies with the Alaska Oil and Gas Conservation Commission at 907-
793-1224.
Hilcorp is interested in leasing this property for the purpose of oil and gas exploration. A copy of
a proposed lease is enclosed for your review. Upon execution by both parties, Hilcorp will pay
you a bonus payment of Thirty Dollars ($30.00) per acre proportionate to your ownership
interest. The lease is for a limited 5 year term.
Hilcorp Alaska LLC
Ninilchik Lease Offer
Page 2 of 2
I'd very much like to speak with you in person regarding our development plans and offer to
lease. On October 9, 2014, Hilcorp is hosting a community meeting at the Ninilchik Fairgrounds.
(See attached flyer). I'll be attending that meeting and would be glad to set up a specific time to
speak. I can be reached at 907-777-8414 or dduffy@emaii.com.
If you can't attend the community meeting, please give me a call to set up a mutually convenient
time to discuss the details of our lease offer and plans to explore your property in Alaska.
Sincerely,
David Duffy, Landman
Cc: AOGCC
Enclosures
0 0
Notice of Public Hearing
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket # CO-14-020. 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 the Paxton
No. 6 well within the Ninilchik Unit Undefined Tyonek and Beluga Gas Pools.
Hilcorp, by letter received June 24, 2014, requests the Alaska Oil and Gas Conservation Commission
(AOGCC) issue an order allowing testing and production of development gas well Paxton No. 6 in the
Undefined Tyonek and Beluga 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.
Paxton No. 6
Surface Location: 825' from the north line and 2926' from the east line of Section 13, T1S, R14W,
Seward Meridian (S.M.)
Top of Productive Interval Location: 2304' from the north line and 2619' from the west line of Section
13, T1S, R14W, S.M.
Bottom -hole Location: 102P from the south line and 2316' from the east line of Section 13, TIS, R14W,
S.M.
The AOGCC has tentatively scheduled a public hearing on this application for July 31, 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 July 11, 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 July 15, 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 July 26,
2014, except that, if a hearing is held, comments must be received no later than the conclusion of the July
31, 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 28, 2014.
t
Cathy P. Foerster
Chair, ommissioner
Ab
Ah
STATE OF ALASKA
ADVERTISING
ORDER
W NOTICE TO PUBLISHER W
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.
/t.4_043
AO_A 1
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.
June 25, 2014
PHONE
907 9 —1221
PCN
DATES ADVERTISEMENT REQUIRED:
June 26, 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 99S 14
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
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REQUIS 1011'
DIVISION APPROVAL:
02-902 (Rev. 3%94) Publisher/Original Copies: Department Fiscal, Department, Receiving
AOTRM
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0001111850 ,
$ 268.94
0 RECEIVED
JUL 01 2014
AFFIDAVIT OF PUBLICATION AOGCC
<; we] �I_�9:I_1
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
June 26, 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
is 26th day of June, 2014
ti
Notary Publij and for
The State of Alaska.
Third Division
Anchorage, Alaska
MY COMMISSION EXPIRES
� c3 11 �
Notice of Public Hearing
STATE OF ALASKA
ALASKA OIL AND GAS CONSERVATION COMMISSION
Re: Docket # CO-14-020. 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 the Paxton
No. 6 well within the Ninilchik Unit Undefined Tyonek and Beluga Gas
Pools.
Hilcorp, by letter received June 24, 2014, requests the Alaska Oil and
Gas Conservation Commission (AOGCC) issue an order allowing testing
and production of development gas well Paxton No. 6 in the Undefined
Tyonek and Beluga 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.
Paxton No. 6
Surface Location: 825' from the north line and 2926' from the east line
of Section 13, T1S, R14W, Seward Meridian (S.M.)
Top of Productive Interval Location: 2304' from the north line and
2619' from the west line of Section 13, T1S, R14W, S.M.
Bottom -hole Location: 1021' from the south line and 2316' from the
east line of Section 13, T1S, R14W, S.M.
The AOGCC has tentatively scheduled a public hearing on this
application for July 31, 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 July 11, 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 July 15, 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
July 26, 2014, except that, if a hearing is held, comments must be
received no later than the conclusion of the July 31, 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 28, 2014.
Cathy P. Foerster
AO-14-043 Chair, Commissioner
Published: June 26, 2014
• •
STATE OF ALASKA NOTICE TO PUBLISHER
ADVERTISING ORDER NO.
ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED /� O_A 14_043
ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF /1
ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE
F AOGCC
R 333 West 7t' 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
Jody Colombie
PHONE
(907) 793 -1221
DATES ADVERTISEMENT REQUIRED:
June 26, 2014
DATE OF A.O.
PCN
THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS
ENTIRETY ON THE DATES SHOWN.
SPECIAL INSTRUCTIONS:
Account # STOF0330
AFFIDAVIT OF PUBLICATION
REMINDER
ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE
THE ADVERTISING ORDER NUMBER.
division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION
MUST BE SUBMITTED WITH THE INVOICE.
Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HER
tho, 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 -
0
Singh, Angela K (DOA)
From: Colombie, Jody J (DOA)
Sent: Wednesday, June 25, 2014 1:41 PM
To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia 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); 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); Jackson, Jasper C
(DOA); Jones, Jeffery B (DOA); Kair, Michael N (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 (DOA); Wallace, Chris D (DOA);
(michael j.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; 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, Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer; Frank Molli;
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; Mike[ Schultz; M1 Loveland; mjnelson; mkm7200; Morones, Mark P
(DNR); 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; 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 1 (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;
jilt.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck; Josh Kindred;
Kenneth Luckey; King, Kathleen 1 (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 Public Hearing, CO-14-020
Attachments: Ade of Public Hearing, CO-14-020.pdf 0
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148 Maple Ave
Snohomish, WA 98290
Charles E. Gates
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Cincinnati, OH 45236
Cynthia Hatton
PO Box 2322
Kirkland, WA 98083
Darwin E and Kaye A
PO Box 39309
Ninilchik, AK 99639
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Carolee Pic ett
5336 Holly Loop SE
Turner, OR 97392
Cook Inlet Region, Inc.
Attn: Land
2525 C Street, Suite 500
Anchorage, AK 99509
Darlene M. Rozak
1134 S Magnolia Ave
Yuma, AZ 85364
Waldsmith David B. Charbonnier
804 Madison Street
Petaluma, CA 94952
David M. and Jeanine B
PO Box 394
DALLAS, OR 97338
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6710 Elmore Road
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Gary Andes and Marna Andes
23 Perry Avenue
Biggs, CA 95917
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308 Willage Lane
Greensboro, NC 27409
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George Maki
c/o Gloria Ropelato
3954 W. 1400 S.
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Edgewood, KY 41017 Eagle River, AK 99577-8496
Janet M and Robert Clucas John D. and Deidre E. McCombs
72880 Sterling Highway PO Box 39087
Clam Gulch, AK 99568 Ninilchik, AK 99639
John L. and Nancy E. Stengl Joy Ward and Walter Ward
North 12003 Cedar Road PO Box 3414
Bimamwood, WI 54414-8737 Kenai, AK 99611
Judith Ballentine L.R. and Katherine Lunne
PO Box 9 2530 Fairmont Avenue
Veguita, NM 87062 Dayton, OH 45419
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1121 Burnt Ridge Road
Troy, ID 83871
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4659 Quigg Drive
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Paul E. Parsons, Jr. and Cindi L. Parsons
PO Box 91858
Anchorage, AK 99509
Robert Flygenring and Cheryl King
926 W 80TH AVE
Anchorage, AK 99518
Ronald Ray Albright
P.O. Box 39391
Ninilchik, AK 99639
Risa Jackinsky
4014 Ben Walters Lane, Apt. C8
Homer, AK 99603
Robert L. and Carol A. Wilson
168 Hidden Ridge Court
Cold Springs, KY 41076
Shawn & Myrle Wilson
6230 Spruce Meadows Drive
Anchorage, AK 96507
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550 West 7th Avenue, Ste. 1100
Anchorage, AK 99501
Stephen Walter Jackinsky Thomas James and Deborah Ann Bandelow
138 NE 106 St 8000 Little Dipper Ave
Miami, FL 33138 Anchorage, AK 99504
Tim and Kristine Moerline University of Alaska
P.O. Box 298 Land Management
Kasilof, AK 99610 1815 Bragaw Street, Suite 101
Anchorage, Ak 99508
Walter L. Wilson Wendy Jacqueline Seaman
P.O. Box 264 12 Haven Dr.
Southworth, WA 98386-0264 Petaluma, CA 94952
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399 W. Riverview Ave. Post Office Box 13557 Hodgden Oil Company
408 Soldotna, AK 99669-7714 Denver, CO 80201-3557 Golden,
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Golden, COO
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
David W. Duffy
Darwin Waldsmith
James Gibbs
Landman
Post Office Box 39309
Post Office Box 1597
Hilcorp Alaska, LLC
Ninilchik, AK 99639
Soldotna, AK 99669
Post Office Box 244027
Anchorage, AK 99524-4027
Davies, Stephen F (DOA)
From: David Duffy <dduffy@hilcorp.com>
Sent: Tuesday, July 01, 2014 11:35 AM
To: Davies, Stephen F (DOA)
Cc: Christine Gay - (C)
Subject: RE: Ninilchik Unit, Pax-6 Spacing Exception Application - contains confidential data
Steve
Regarding Gloria (Millet) Ropelato:
She received her minerals under the name of Millet. Her current married name is Ropelato.
Regarding Sephen M. Wackowski:
The address of record from the oil and gas lease is no longer valid. We have not received any communications from him
regarding a change of address. We searched the Alaska recording offices, current Alaska business licenses and Kenai
Peninsula Borough's land records. Then we ran People Search and other websites. We attempted to contact his son
(who was reported to live in Anchorage) but were unable to contact him. We called an old Ozark, Alabama number - it
is no longer in service. Our Lexis Nexis search still shows him at 103 Ryans Way, Youktown, VA, which is a bad address.
Regarding Paxton 6 Notifications:
As of today we have two returns (see attached). We have resent both. New Addresses are:
Shawn & Myrle Wilson
6230 Spruce Meadows Drive
Anchorage, AK 99507
Shawn W. Jackinsky, Sr.
PO Box 872575
Wasilla, AK 99687
If you have any questions, please give either Chris Gay (777-84-32) or me a call.
David Duffy, Landman
Hilcorp Alaska, LLC
Direct: 907-777-8414
Cell: 907-301-2629
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@alaska.gov]
Sent: Monday, June 30, 2014 10:08 AM
To: David Duffy
Subject: RE: Ninilchik Unit, Pax-6 Spacing Exception Application - contains confidential data
1
Quick questions regarding the mail notification of potentially affected parties for Paxton 6:
The mailing list contains the name/address for Gloria Millet. The apparent, corresponding mailing label says
G|oriaRope|ato. Which isher legal name?
What efforts has Hilcorp made to obtain the current address for Stephen Wackowski (listed as "No Current
Address")?
Please let me know if any of the Paxton 6 notifications are returned by the Postal Service.
Thanks,
Steve Davies
AOGCC
From: David Duffy [maiIto:dduffy(&hiIcorp.com]
Sent: Monday, ]une3O, 30148:52AM
To: Davies, F(DOA)
Cc: Rnbv, David S (DOA); Larry Greenstein; David Buthman
Subject: RE: NinibhikUnit, Pax-6 Spacing Exception Application -oontainyconfidantia|data
Thanks, Steve. We'd be glad to set up a technical meeting as needed to discuss the proposed Ninilchik Pool Rules and
individual spacing applications.
Currently, vvehave Pax-6submitted separately. You'll beseeing France*2later today ortomorrow. Hopefully, I'll have
Pax 7and Frances 3toyou bythe end ofthe week.
Depending on the outcome of these 4 wells, Hilcorp will also be expanding the unit boundary and associated
Participating Areas. We'd beglad toinclude anupdate onthese details inatechnical meeting.
Regards,
David
From: Davies, F(DOA)
Sent: Monday, June 30,20147:S7AM
To: David Duffy
Cc: Roby, David S(OOA)
Subject: RE: Nini|chikUnit, Pax-6 Spacing Exception Application -containsconfidentia|dnta
I'm the hold uponthese items. I was out of the office for nearly three weeks due to family emergency, and am working
through nybacklog. The way I prefer to review pool rules applications is to actually write the draft text of the
conservation order asvvework through the application. That way, vveensure that wehave all needed information. The
technical meeting that you propose will help fill \nany gaps. Having adraft order finished prior tothe public hearing
minimizes surprises. I hope to get to Hilcorp's Ninilchik application in the next day or two. We'll be in touch after that to
set up a technical review meeting, if one is necessary.
Thanks,
Steve Davies
From: David Duffy (mailtoAclu fy(ftilcorp.com]
Sent: Tuesday, June 24, 2014 11:25 AM
To: Colombie, Jody J (DOA); Davies, Stephen F (DOA); Schwartz, Guy L (DOA); Roby, David S (DOA); Bettis, Patricia K
(DOA)
Cc: Jeff Allen; David Buthman; Kevin Tabler; Larry Greenstein
Subject: Ninilchik Unit, Pax-6 Spacing Exception Application - contains confidential data
All
Please find attached electronic copy of Hilcorp's proposed spacing exception application for the Ninilchik Unit's Pax-6
well. We'll hand -deliver the original to AOGCC later today. The certified copies to landowners will be placed into
today's mail.
At your convenience, we'd like to schedule a technical meeting on the previously submitted Ninilchik Pool Rules, plus
Pax-6 and the three pending individual spacing exception applications (Pax-7, Frances 2 and Frances 3).
If you have any questions, please give me a call.
Regards,
David Duffy, Landman
Hilcorp Alaska, LLC
Direct: 907-777-8414
Cell: 907-301-2629
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.
i H i
Hilcorp Alaska, LLC
June 24, 2014 JReCLV1Vg0
JUN 14 2014
Cathy Foerster, Chair AOOCC
Alaska Oil and Gas Conservation Commission
333 West 7t' Avenue, Suite 100
Anchorage, Alaska 99501
Post Office Box 244027
Anchorage, AK 99524-4027
3800 Centerpoint Drive
Suite 1400
Anchorage, AK 99503
Phone:907/777-8414
Fax: 907/777-8301
Email: dduffv@hilcorp.com
RE: Application for spacing exception per 20 AAC 25.055(a)(2) and (4) to test and
produce the Paxton #6 within the Ninilchik Unit Undefined Tyonek and Beluga
Pools
Dear Commissioner Foerster:
Pursuant to 20 AAC 25.055(a)(2) and (4), Hilcorp Alaska, LLC ("Hilcorp"), as Operator
of the Ninilchik Unit, requests permission to test and produce the Paxton # 6 well in the
Undefined Tyonek and Beluga Pools within 1,500 feet of a property line where the
owner and landowner are not the same on both sides of the line, and within 3,000 feet of
other wells capable of producing from the same pool.
To date, no special Pool Rules have been established within the Ninilchik Unit.
Therefore, statewide spacing regulation 20 AAC 25.055(a) is controlling. In relevant
part, subsections (a)(2) and (a)(4) provide:
(a)(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.
(a)(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 Paxton #6 and its relationship to adjoining properties and wells is
depicted in Exhibit A. A confidential plat (well data) is provided in Exhibit B.
Surface Location: 2926' FEL, 825 FNL, Sec. 13, T1S, R14W, SM, AK.
Top of Productive Interval: 2304' FNL, 2619' FWL, Sec. 13, T1S, R14W, SM, AK.
Bottom Hole Location: 1021' FSL, 2316' FEL, Sec. 13, T1S, R14W, SM, AK.
Based on confidential geological and engineering data available to Hilcorp, it is apparent
that both the Undefined Tyonek and Beluga Pools are particularly discontinuous and
unpredictable and that they drain small areas. The existing wells in the Paxton -Susan
Dionne area indicate that the majority of the Beluga and Tyonek fluvial sandstone
Ninilchik Unit • 0
Paxton #6 Spacing Exception Application
June 24, 2014
Page 2 of 8
reservoirs drain less than 250 acres or—1,860-ft radius and cannot be efficiently
produced from existing wells.' Note that over 70 percent of the sands drain less than the
currently governing spacing of a 3,000 foot radius. In order to prevent waste and
maximize gas recovery from both the Undefined Tyonek and Beluga Pools, we therefore
request a spacing exception.
Hilcorp, as sole unit operator, will account for all testing and production of Paxton #6 as
required by the Ninilchik Unit Agreement, including establishment of accounts for all
affected properties currently outside the Ninilchik Unit and Susan -Dionne PA boundary.2
As a result, the correlative rights of all affected owners, landowners and operators will be
protected by approval of the requested short duration test and spacing exception.
At the date of this mailing, a copy of this application was sent by certified mail to the all
affected owners and landowners within 3000 feet of Paxton #6's anticipated productive
interval. No other affected operators exist. Also enclosed is an affidavit stating the
undersigned is acquainted with the facts and verifying that all facts asserted herein are
true.
Should you have any technical questions, please contact Mr. David Buthman, Senior
Geologist, at (907) 777-8395, or you may contact the undersigned at (907) 777-8414.
Sincerely,
David W. Duffy, Landman
Hilcorp Alaska, LLC
Enclosures: Exhibit A, Confidential Exhibit B (AOGCC-only), Affidavit, Copy of
Certified Mail Receipts, Mailing Labels for AOGCC Notice
CC: Owners and Landowners within 3000 feet of subject well
1 Existing wells currently or potentially open to production in the within 3000' of the Paxton #6 include:
Paxton #1 (Tyonek), Paxton #2 (Tyonek/Beluga), Paxton #3 (Tyonek/Beluga), Paxton #4
(Tyonek/Beluga), and Susan -Dionne #7 (Tyonek/Beluga). See Exhibit B (Confidential).
2 Note: In late 2014 or early 2015, Hilcorp anticipates formally expanding the Ninilchik Unit boundary
and Susan -Dionne Participating Area to include production from the proposed well.
Ninilchik Unit •
E
Paxton #6 Spacing Exception Application
June 24, 2014
Page 3 of 8
Certified Mailing List
Arthur D. Reina
Carolee Pickett
c/o Dan Reina
5336 Holly Loop SE
148 Maple Ave
Turner, OR 97392
Snohomish, WA 98290
Charles E. and Stephanie Gates
Cook Inlet Region, Inc.
9215 Deercross Pkwy, Apt. B I
Attn: Land
Cincinnati, OH 45236
2525 C Street, Suite 500
Anchorage, AK 99509-3330
Cynthia Hatton
Darlene M. Rozak
PO Box 2322
1134 S. Magnolia Ave.
Kirkland, WA 98083
Yuma, AZ 85364
Darwin E. and Kaye A. Waldsmith
David B. Charbonnier
PO Box 39309
804 Madison Street
Ninilchik, AK 99639
Petaluma,CA 94952
David M. and Jeanine B. Shea
David Kodysz and Jean Gregorich ,
PO Box 394
PO Box 39052
Dallas, OR 97338
Ninilchik, AK 99639
David W. Smith
Edward Lee Maki
PO Box 39690
505 Jamestown Ct.
Ninilchik, AK 99639
Frankfort, KY 40601
Gailan B. Johnson
Gale R. Graham
6710 Elmore Road
23 Perry Avenue
Anchorage, AK 99507
Biggs, CA 95917
Gary Andes and Marna Andes
Gary Wade Jackinsky
23 Perry Avenue
P.O. Box 39127
Biggs, CA 95917
Ninilchik, AK 99639
George A. and Patricia Gates
George Maki
308 Willage Lane
c/o Gloria Ropelato
Greensboro, NC 27409
3954 W 1400 S.
Ogen, UT 84401-9062
Glenn R. and Carolyn M. Edwards •
Gloria Millet !t v
PO Box 67
3954 W 1400 S.
Barrow, AK 99723
Ogen, UT 84401-9062�.
Ninilchik Unit 0
•
Paxton #6 Spacing Exception Application
June 24, 2014
Page 4 of 8
Certified Mailing List
James B. and Patricia Webster
James D. and Diane S. Elledge
887 Fawn Hill Drive
20504 Philadelphia Way
Edgewood, KY 41017
Eagle River, AK 99577-8496
Janet M and Robert Clucas
John D. and Deidre E. McCombs
72880 Sterling Highway
PO Box 39087
Clam Gulch, AK 99568
Ninilchik, AK 99639
John L. and Nancy E. Stengl
Joy Ward and Walter Ward
North 12003 Cedar Road
PO Box 3414
Bimamwood,WI 54414-8737
Kenai, AK 99611
Judith Ballentine
L.R. and Katherine Lunne
PO Box 9
2530 Fairmont Avenue
Veguita,NM 87062
Dayton, OH 45419
Larry M. Rozak
Lela Joy Thatcher
PO Box 1179
PO Box 307
Homer, AK 99603
Sterling, AK 99672
Mckibben Jackinsky and
Michael Roy Smith
Emily Long and Jennifer Long
1121 Burnt Ridge Road
PO Box 39187
Troy, ID 83871
Ninilchik, AK 99639
Michael S. and Cheryl B. Sutton
Patrick L. Pearl
PO Box 39214
4659 Quigg DriveApt. No 757
Ninilchik, AK 99639
Santa Rosa, CA 95409
Paul E. and Cindi L. Parsons
Risa Jackinsky
PO Box 91858
4014 Ben Walters Lane, Apt. C8
Anchorage, AK 99509
Homer, AK 99603
Robert Flygenring and Cheryl King
Robert L. and Carol A. Wilson .
926 W 80th AVE
168 Hidden Ridge Court
Anchorage, AK 99518
Cold Springs, KY 41076
Ronald Ray Albright
Shawn and Myrle Wilson
P.O. Box 39391
6230 Spruce Meadows Drive
Ninilchik, AK 99639
Anchorage, AK 96507
Shawn W. Jackinsky, Sr.
Shew Family 2002 Trust
P.O. Box 220426
James A and Ann J. Shew, Co -Trustees
Anchorage, AK 99522
PO Box 1862
Kenai, AK 99611
Ninilchik Unit 0
Paxton #6 Spacing Exception Application
June 24, 2014
Page 5 of 8
Certified Mailing List
State of Alaska
Stephen Wackowski
Department of Natural Resources
No Current Address
550 West 7th Avenue, Ste. 1100 '
Anchorage, AK 99501
Stephen Walter Jackinsky
Thomas James and Deborah Ann Bandelow
138 NE 106 St
8000 Little Dipper Ave.
Miami,FL 33138
Anchorage, AK 99504 '
Tim and Kristine Moerline
University of Alaska
P.O. Box 298
Land Management '
Kasilof, AK 99610
1815 Bragaw Street, Suite 101
Anchorage, AK 99508-0000
Walter L. Wilson
Wendy Jacqueline Seaman
P.O. Box 264
12 Haven Dr.
Southworth,WA 98386-0264
Petaluma,CA 94952
Ninilchik Unit • 0
Paxton #6 Spacing Exception Application
June 24, 2014
Page 6 of 8
VERIFIATION OF APPLICATION FOR SPACING EXCEPTION
COOK INLET ALASKA
NINILCHIK UNIT
Paxton #6 Well
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 application
to the Alaska Oil and Gas Conservation Commission for the Paxton #6 well
pursuant to 20 AAC 25.055(a)(2) and (4).
I assert all facts outlined in the above -referenced application are true. I further
assert the requested spacing exception is necessary to expand existing unit
production of natural gas from the Undefined Tyonek and Beluga Pools.
I have reviewed the plat attached to said application and it correctly portrays the
pertinent and required data for the Commission to take action on this request.
�1
DATED at Anchorage, Alaska this � day of June 2014.
D id W. Duffy, Lan an
Hilcorp Alaska, LLC
STATE OF ALAKSA )
ss
THIRD JUDICIAL DISTRICT )
SUBSCRIBED TO AND SWORN before me thia/lay of June 2014
MTN,T JF ALAASKA f
mo-TARY PUBLIC NOT RY PUBLIC IN AND FOR
elrna M. Clarke
TH TATE OF ALSKA
My Commission expires:
Confidential Exhibit B held in secure storage
corp Alaska, LLC
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corp Alaska, LLC
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corp Alaska, LLC
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4014 Ben Walters Lane, Apt. CS
Homer, AK 99603
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;vin A, Tabler
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:00 Centerpuint Dr., Ste 1400
achorage, AK 99503
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win A. Tabler
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Robert L. and Carol A. Wilson
168 Hidden Ridge Court
Cold Springs, KY 41076
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Ronald Ray Albright
P.O. Box 39391
Ninilchik, AK 99639
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Shawn and Myrle Wilson
6230 Spruce Meadows Drive
Anchorage, AK 96507
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Shawn W. Jackinsky, Sr.
P.O. Box 220426
Anchorage, AK 99522
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PO Box 1862
Kenai, AK 99611
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[torage, AK 99501
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Stephen Walter Jackinsky
138 NE 106 St
Miami, FL 33138
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'Momas and Deborah Ba
8000 Little Dipper Ave.
Anchorage, AK 99504
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Manager, Alaska
Centerpoint Dr., Ste 1400
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Tim and Kristine Moerline
P.O. Box 298
Kasilof, AK 99610
corp Alaska, LLC
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horage, AK 99503
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Walter L. Wilson
P.O. Box 264
Southworth, WA 98386-0264
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carp Alaska, LLC
in A. Tabler
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1 Centerpoint Dr., Ste 1400
horage, AK 99503
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