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HomeMy WebLinkAboutCO 710• • zm� rom a a_ i = �. 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. 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INDEX CONSERVATION ORDER NO. 710 Docket Number: CO-14-028 North Fork Unit No. 42-35 Development Gas Well North Fork Undefined Gas Pool North Fork Unit Kenai Peninsula Borough, Alaska October 14, 2014 CIE's application for spacing exception: NFU No. 42-35 October 20, 2014 Emails re: Spacing Exception October 22, 2014 Email re: Mailing Certification Cards October 24, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, and mailings INDEX CONSERVATION ORDER NO. 710 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue 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 development gas well North Fork Unit No. 42-35 in a governmental section containing wells that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO-14-028 Conservation Order No. 710 North Fork Unit No. 42-35 Development Gas Well North Fork Undefined Gas Pool North Fork Unit Kenai Peninsula Borough, Alaska December 4, 2014 1. Cook Inlet Energy, LLC (CIE), by letter received October 15, 2014, requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete development gas well North Fork Unit No. 42-35 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 Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for December 2, 2014. On October 24, 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, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the Notice of Public Hearing to all persons on the AOGCC's mailing distribution list. On October 27, 2014, the notice was published in the ALASKA 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 a 3,000-foot radius of the North Fork Unit No. 42-35 well. CIE provided the AOGCC with a copy of the notice, date of mailing, Certified Mail Receipts, and addresses to which the notice was sent. 4. No protest to the application or request for hearing was received. 5. Because CIE provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 6. The tentatively scheduled public hearing was vacated on November 25, 2014. Conservation Order 710 December 4, 2014 Page 2 of 3 FINDINGS: 1. CIE owns and operates the North Fork Field and the North Fork Unit No. 42-35 development gas well, which are located in Kenai Peninsula Borough, Alaska. 2. North Fork Unit No. 42-35 will be an onshore well with a surface location 588' from the south line and 1,453' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.). The top of the productive interval is expected to lie 1,757' from the north line and 807' from the east line of Section 35, T4S, R14W, S.M. The bottom -hole is projected to be 2,573' from the north line and 593' from the east line of Section 35, T4S, R14W, S.M. 3. North Fork Unit No. 42-35 will be located within State of Alaska leases ADL-391210 and ADL-391211. 4. CIE proposes to drill and complete North Fork Unit No. 42-35 as a development gas well in reservoir sandstone beds assigned to the North Fork Undefined Gas Pool. North Fork Unit No. 42-35 will open this gas pool within the same governmental section as, and within 3,000' of, wells that are, or may be capable of, producing from the same pool. 5. North Fork Unit No. 42-35 will be drilled to a structurally advantageous location to access discontinuous and unpredictable fluvial sandstone reservoirs that cannot be efficiently produced from existing wells. 6. On October 14, 2014, CIE sent the application for exception by certified mail to all affected owners, landowners, and operators within 3,000' of the anticipated productive reservoirs within North Fork Unit No. 42-35—i.e., the State of Alaska and CIE. CIE provided addresses and Certified Mail Receipts to the AOGCC as proof that the application was mailed to all affected owners, landowners, and operators. 7. The AOGCC received no comments, objections, or protests in response to the public notice regarding the proposed North Fork Unit No. 42-35 well or to the notifications sent by CIE and to all affected owners, landowners, and operators within 3,000' of North Fork Unit No. 42-35. 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. 42-35 development gas well at a location that will maximize resource recovery. 2. North Fork Unit No. 42-35 will recover reserves that are not accessible to other existing wells. 3. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) for CIE's North Fork Unit No. 42-35 well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. Conservation Order 710 December 4, 2014 Page 3 of 3 NOW THEREFORE IT IS ORDERED: CIE's 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 CIE's North Fork Unit No. 42-35 development gas well within the North Fork Undefined Gas Pool is hereby approved as long as CIE complies with the terms of all lease agreements, Alaska law, and all other legal requirements. DONE at Anchorage, Alaska and dated December 4, 2014. a /P �;� Cathy . Foerster Daniel T. Seamount, Jr. Chair, Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE Commissioner 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. 0 Singh. Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Friday, December 05, 201412:43 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); 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); Jones, Jeffery B (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 (DOA); Skutca, Joseph E (DOA); Wallace, Chris D (DOA); AKDCWellIntegrityCoordinator, 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 Gallego; 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; 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; 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; 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, To: RiOrd J (LAW); Tostevin, Breck C (LAW); Wayn*ooster, William Hutto; William Van Dyke Subject: Conservation Order 710 (North Fork Unit) Attachments: co710.pdf Please see attached. Samantha CarCisle 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. James Gibbs Jack Hakkila Bernie Karl Post Office Box 1597 Post Office Box 190083 K&K Recycling Inc. Soldotna, AK 99669 Anchorage, AK 99519 Post Office Box 58055 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. Post Office Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 JR Wilcox Richard Wagner Darwin Waldsmith President Post Office Box 60868 Post Office Box 39309 Cook Inlet Energy, LLC Fairbanks, AK 99706 Ninilchik, AK 99639 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 V',Gl,'—Q ��`Cr J t Angela K. Singh 0 0 • • Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-028. 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 15, 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 #42-35 in the North Fork Unit within a governmental section containing wells that are, or may be capable of, producing from the same pool NFU #42-35 Surface Location: 588' from the south line and 1453' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 1757' from the north line and 807' from the east line of Section 35, T4S, R14W, S.M. Bottom -hole Location: 2573' from the north line and 593' from the east line of Section 35, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for December 2, 2014, at 1:00 p.m. at 333 W. 7`' Ave., Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on November 12, 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 20, 2014. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7t' Ave., Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 28, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the December 2, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than November 27, 2014. Fhy Foerster Chair, Commissioner STATE OF ALASKA ADVERTISING i�1�iJ R ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO-15-006 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O. 10/24/14 1(907) AGENCY PHONE: 793-1221 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: Publish 10/27/14. FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 TYPE OF ADVERTISEMENT: ' r LEGAL DISPLAY r CLASSIFIED r OTHER (Specify below) DESCRIPTION N CO-14-28 Initials of who prepared AO: Alaska Non -Taxable 92-600185 Nvaic ........ .......S.. :':':ORiYER.NO:,.CERTIEIEDaPPIDA?IT.OF..:.. :_Ptf$LIOATION:WITII,A:TTACIIED.CO.PYOF. ..................................I VERTISM.EN.T.Tot....<........:: .................................. Department of Administration Division of AOGCC 333 West 7th AVenUe Anchorage, Alaska 99501 I Page I of I Total of All Pages $ - REF Type Number Amount Date Comments 1 PVN ADN84501 2 Ao AO-15-006 3 4 FIN AMOUNT SY CC PGM LGR ACCT FY DIST LIQ 1 15 02140100 73451 15 2 3 4 5 Par asing at ogi a e Title: Y t Purchasing Authority's Signature Telephone Number — 1. A.O. # r iving agency name must appear on all invoices and documents relating to this purchase. 2. The st to 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. DISTRIB.UTI�.................................. r:.f Xed Divislo n Fisca l aiece iviri' • : P Iishe a D:ivisiori.FiscaUE)riginat:AO.:.:.. ... ..... ub ..... t..... )� .............. ........ 5..::.:::: j::: »::::::::.::::::::: >::::< Form:02-901 Revised: 10/24/2014 270227 0001352284 RECEIVED $ 268.94 OCT 29 2014 AFFIDAVIT OF PUBLICATION aoGcc STATE OF ALASKA THIRD JUDICIAL DISTRICT Emma Dunlap 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 27, 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 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-028. 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 15, 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 #42-35 in the North Fork Unit within a governmental section containing wells that are, or may be capable of, producing from the same pool NFU #42-35 Surface Location: 588' from the south line and 1453' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Top of Productive interval Location: 1757' from the north line and 807' from the east line of Section 35, T4S, R14W, S.M. Bottom -hole Location: 2573' from the north line and 593' from the east line of Section 35, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for December 2, 2014, at 1:00 p.m. at 333 W. 7th Ave., Anchoragge, Alaska 99501. To request that the at scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on November 12, 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 20, 2014, In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 28, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the December 2, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than November 27, 2014. AO-15-006 Published: October 27, 2014 Cathy P. Foerster Chair, Commissioner Subscribed and sworn to before me this 27th day of October, 2014 ' Notary Public in and for The State of Alaska.* N``� Third Division Anchorage, Alaska MY COMMISSION EXPIRES ""`�''•;® �o,�..••' Singh, Angela K (DOA) � o From: Colombie, Jody J (DOA) Sent: Friday, October 24, 20141:27 PM To: Singh, Angela K (DOA); (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator, Alexander Bridge; Allen Huckabay; 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); 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; 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 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; 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; 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; Bettis, Patricia K (DOA); 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 Hearing (CIE) Attachments: Notice of Public Hearing CO 14-028.pdf Jody J. Colombie • • Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 71h Avenue Anchorage, Alaska 99501 Jody. Colombi&( alaska. qov Office: (907) 793-1221 Fax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or lodk.colombie@alaska.gov Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Friday, October 24, 20141:28 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (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); Jones, Jeffery B (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 (DOA); Skutca, Joseph E (DOA); Wallace, Chris D (DOA) Subject: Notice of Hearing Attachments: Notice of Public Hearing CO 14-028.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Jodtl. Colombie(c)alaska.gov Office: (907) 793-1221 Fax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iodycolombie@alaska.gov James Gibbs Jack Hakkila Bernie Karl Post Office Box 1597 Post Office Box 190083 K&K Recycling Inc. Soldotna, AK 99669 Anchorage, AK 99519 Post Office Box 58055 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. Post Office Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 JR Wilcox Richard Wagner Darwin Waldsmith President Post Office Box 60868 Post Office Box 39309 Cook Inlet Energy, LLC Fairbanks, AK 99706 Ninilchik, AK 99639 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 Angela K. Singh • 0 Davies, Stephen F (DOA) From: Tim Jones <Tim.Jones@cookinlet.net> Sent: Wednesday, October 22, 2014 8:45 AM To: Davies, Stephen F (DOA) Subject: cert cards for 42-35 spacing exception request Attachments: NFU 42-35 Notice of Spacing Except Cert Cards.pdf Good morning Steve, Please find attached the certification cards for the Notice of Request for Spacing Exception sent out to owners and landowners. Please let me know if you need any further information. Thanks. 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 IX 0 pl(� lmrgy- 1 • Complete items 1, 2, 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 mailpiece, or on the front if space permits. 1. Article Addressed to: 13 Agent A. Si nature nT& ft❑ X 13 Addressee V &,vd b t N r (I 1 Pate ofDelivery 'Dellve�7,Q,y I C. — lu R D. Is delivery address differQlt from item 17 es If YES, enter delivery address below: 13 No COOK INLET ENERGY LLC 601 W 5 TH AVENUE SUITE 3110 ANCHORAGE AK 99501 3, Service Type ET6erfifled Mail9 0 Priority Mail Express- ® Registered 0 Return Receipt for Merchandise 0 Insured Mail E3 Collect on Delivery 4. Restricted Delivery? (Extra Fee) 0 Yes 2. Article Number (Transfer from service Iabeo 7014 0150: 0001 6012:;7025 P9 Form 3 Domestic-Retum Receipt its Complete items 1, 2, 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 mailpiece, or on the front if space permits. 1. Article Addressed to. STATE OF ALASKA D E PT OF NATURAL RESOURCES ALASKA DIVISION OF OIL AND GAS A. Signature- Agent Xt Add--. B. Rec�ile r6r r%!V ,eVUoC. De 0f D !P livery f I n lyf r V I y D. Is delivery address different from item? 13 Aes If YES, enter delivery address below: E3 No s 550W7 TH AVENUE SUITE 1100 3. Se ice Type ANCHORAGE AK 99501-3560 Se Mail* E3 Priority Mail Express' 0 Registered 0 Return Receipt for merchandise 171 Insured Mail E3 Collect on Delivery 4. Restricted Delivery? (Extra Fee) 11 Yes 2. Article Number 7014 0150 0,001" L[11&,7018 (rhansfer from service lades} PS Form 3811, july 2013 Domestic Return Receipt 0 • Davies, Stephen F (DOA) From: Tim Jones <Tim.Jones@cookinlet.net> Sent: Monday, October 20, 2014 1:36 PM To: Davies, Stephen F (DOA) Cc: Colombie, Jody J (DOA) Subject: RE: North Fork Unit 42-35 (PTD #214-170) Spacing Exception Steve, Please see the response to your question 1 from our geology department. I will pass along the certified mail receipt when we receive back the one from DNR, most likely tomorrow. Please let me know if you need anything else. Thanks. 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 wellbore. In order to drill a well conforming to current spacing the well would have to penetrate objective sands in Sec 36 T 4S R 14W. As currently interpreted, a down to the Northeast Normal fault striking Northwest — Southeast bounds the existing reservoirs along the western boundary of Section 36. A well drilled conforming to current spacing would very likely be downthrown on this fault and out of the upthrown closure intended to be penetrated. Tim From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, October 20, 2014 11:52 AM To: Tim Jones Cc: Colombie, Jody J (DOA) Subject: North Fork Unit 42-35 (PTD #214-170) Spacing Exception M A new spacing exception order will be required for CIE's proposed North Fork Unit 42-35 development gas well. AOGCC will consider CIE's letter received October 15, 2014 to be a letter of request for this new spacing exception order. Two items are lacking: 1. Could CIE please provide a brief explanation as to why CIE has chosen to drill this well at the specified location rather than at a location that conforms with the statewide spacing requirements of 20 AAC 25.055? 2. Could CIE please provide to the AOGCC copies of the Certified Mail Receipts for all parties notified? Once AOGCC receives the above, we will schedule a public hearing and publish / distribute the Notice of Public Hearing. Thank you, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 1 xoscc: 907-279-1433 Fax: 907'276-7542 3BWest 7*Avenue, Suite zO0 Anchorage, xx995Vz CONFIDENTIALITY NOTICE, This e-mail message, including any attachments, contains information from the Alaska [V| and Gas Conservation Commission (AOGC[), State cf 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 . 0 0 0 • _ Cook Inlet Energy_ A Wholly Owned Subsidiary of Miller Energy Resources October 14, 2014 Alaska Oil and Gas Conservation Commission 333 West 7r' Ave., Suite 100 Anchorage, Alaska 99501 Re: Spacing Exception for the Proposed NFU #42-35 Well Dear Commissioners, OCT 15 2014 FAT Cook Inlet Energy, LLC ("CIE") recently submitted an Application for a Permit to Drill ("PTD") for the proposed NFU #42-35 Well. Our predecessor in interest, Armstrong Cook Inlet, LLC ("ACI") applied for and was granted a spacing exception (CO 662) for NFU #42-35 on September 27, 2012. The PTD that CIE recently filed for NFU #42-35 is identical to the approved PTD and spacing exception granted to ACI. CIE proposes to drill NFU #42-35 from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M. at 590 47' 46.358" N and 1510 37' 44.913" W, NAD 27 datum, 588 feet from the south line and 1,453 feet from the east line. NFU #42-35 will have a bottomhole location within Section 35, T. 4 S., R. 14 W., S.M., 2,573 feet from the north line and 593 feet from the east line. The top of the Tyonek productive zone is anticipated to fall roughly 1,757 feet from the north line and 807 feet from the east line of Section 35. CIE is planning to test and potentially produce from zones within Section 35, T. 4 S., R. 14 W., S.M. Under separate cover, CIE has applied to drill NFU #42-35 using the CO 662 spacing exception order. Should the AOGCC find that a new application for a spacing exception is necessary, 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 #42-35, into a governmental section which contains other gas wells producing or capable of producing from the same pool. The attached Exhibit A lists the Landowners, Owners, and Operators within 3,000 feet of NFU #42-35 and their contact information. The attached Exhibit B is a plat showing the location of NFU #42-35 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 ibit D is an affidavit from Mr. Tim Jones, Registered Professional Landman # 84167 and Senior Lanc#nafor CIE, verifying the plat and facts contained herein. JR Wilcox President 601 W. 5t' Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 fax Spacing Excep&or Proposed NFU #42-35 Well 0 October 14, 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 T. 4 S., R. 14 W., TRACT B, SEWARD MERIDIAN, Energy, LLC Energy, LLC ALASKA. Segment 1 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. State of Alaska Cook Inlet Cook Inlet ADL 733 Energy, LLC Energy, LLC T 4S, R14W, SEWARD MERIDIAN, ALASKA. SEGMENT I SECTION 36: NE1/4, SW1/4, Nl/2SEl/4, SWl/4SE1/4 CONTAINING 440 ACRES, MORE OR LESS. SEGMENT 2 SECTION 36: NWI/4NW1/4 CONTAINING 40 ACRES, MORE OR LESS. SEGMENT 3 SECTION 36: S1/2NW1/4, NEl/4NWl/4 CONTAINING 120 ACRES, MORE OR LESS. CONTAINING 640 ACRES, MORE OR LESS. Contact Information: State of Alaska CERTIFIED MAIL 7014 0150 6012 7018 Department of Natural Resources Spacing Exceor Proposed #NFU 42-35 Well October 14, 2014 Alaska Division of Oil and Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99503 907-269-8800 Cook Inlet Energy, LLC 601 W. 5'j' Avenue, Suite 310 Anchorage, AK 99501 907-334-6745 CERTIFIED MAIL 7014 0150 6012 7025 • Spacing Excepor Proposed #NFU 42-35 Well October 14, 2014 EXHIBIT B i i -4,$., R. 14 W. S.M. i 25 i Top o • Tyonek % = ' `' ' Productive �. Zon' i rrc _- 3'•3 asss 1,5 ft. rpn .�1 a;•TS 1,5,00 ft. tyY Y' �`•3 i • Spacing Excepor Proposed #NFU 42-35 Well October 14, 2014 EXHIBIT C _ Cook Inlet Energy_ A Wh lly 0—d Svb%WWy of b&Re, Energy Rr~ms October 14, 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 942-35 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 442-35 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 #42-35 Well for gas within the same governmental section of other wells capable of producing from the same pool. CIE proposes to drill the NFU #42-35 Well from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M., 588 feet from the south line and 1,453 feet from the east line. The NFU #42-35 Well will have a bottomhole location within Section 35, T. 4 S., R. 14 W., S.M., 2,573 feet from the north line and 593 feet from the east line. CIE is planning to test and potentially produce from zones within Section 35, T. 4 S., R. 14 W. The NE and NW quarters of Section 35 contains other wells, the NFU #32-35 and NFU #41-35 and the NFU #22- 35 respectively, 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 #42-35 Well. Please contact me should you require additional information. l Tim Distribution List: Alaska Division of Oil and Gas Cook Inlet Energy, LLC 601 W. Th Avenue, Suite 310, Anchorage, AK "501 ("7) 334-6745 ■ ("7) 33"735 fax Spacing Excepor Proposed #NFU 42-35 Well 0 October 14, 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: 1. 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 Timothy Jor RPL #84167 sayeth naught. UNITED STATES OF AMERICA § STATE OF ALASKA 10�JA Date NOTARY PUBLIC KATY HOOPER STATE OF ALASKA My Commission Expires June 26, 2016 Subscribed a d sworn to before m on the day of October, 2014. Notary Public My commission expires: 2—( l