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Home My WebLink AboutCO 712i erc(-t' Order -Us Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. 7rkL f' {�� I� ��A �� 0� -- _----- Rescan Needed hII III�I I it w�� ►1 (done) ❑ wo-sEGe�} 6E� I� ❑ RESCAN ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: BY: Angela Project Proofing DIGITAL DATfi, ❑ Diskettes, No. ❑ Other, No/Type: ✓ Date: 2,15- I5 OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: ❑ Other:: BY Angela Date: 2.-25•r5 /s/ QA� Scanning Preparation x 30 = + = TOTAL PAGES 2-2 (Count does not include cover sheet) BY: Angela Date: 2-2515 /s/ n Scanning IIIIIIIIIIIIII IIIII Production g Stage 1 Page Count from Scanned File: 2-3 (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ✓ YES NO BY: Angela ✓ Date: 2- 25 / rJ /s/ Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: /s/ Scanning is complete at this point unless rescanning is required. II I II �I II I II II I I III ReS canned 1111111111111111111 BY: Angela Date: /s/ Qualit Checked IIIII'IIIIIIII'llll Comments about this file: y INDEX CONSERVATION ORDER NO. 712 Redoubt Shoal Field Redoubt Shoal Unit Undefined Oil Pool Redoubt Shoal Unit - 7B Development Oil Well Kenai Peninsula Borough, Alaska 1. November 17, 2014 Cook Inlet Energy, LLC's (CIE) request for spacing exception 2. November 19, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, and mailings INDEX CONSERVATION ORDER NO. 712 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)(3) to drill and complete a development oil well within the same governmental quarter section as, and within 1,000 feet of, wells that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO- 14-33 Conservation Order No. 712 Redoubt Shoal Field Redoubt Shoal Unit Undefined Oil Pool Redoubt Shoal Unit-713 Development Oil Well Kenai Peninsula Borough, Alaska January 8, 2015 By a letter received November 17, 2014, Cook Inlet Energy, LLC (CIE) requested an exception to the spacing provisions of 20 AAC 25.055(a)(3) to drill, complete, and produce the Redoubt Shoal Unit (RU) No. 713 development oil well in the same governmental quarter section as, and within 1,000 feet of, 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 January 13, 2015. On November 19, 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 to all persons on the AOGCC's mailing distribution list. On November 20, 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 1,000 feet of the proposed RU-713 well. CIE provided the AOGCC the notice, date of mailing, addresses to which the notice was sent, and copies of the certified mail return receipts. 4. Neither comments on the application nor a 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. On December 16, 2014, the tentatively scheduled public hearing was vacated. Conservation Order No. 712 January 8, 2015 Page 2 of 3 FINDINGS: 1. CIE is the operator of the RU, located offshore within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The RU-713 is a proposed deviated development well with an offshore surface location 1,962 feet from the south line and 271 feet from the east line of Section 14, Township 7 North, Range 14 West, Seward Meridian (S.M.). The projected offshore bottom -hole location is 1,136 feet from the north line and 2,246 feet from the west line of Section 19, Township 7 North, Range 13 West, S.M. 3. The surface location of RU-713 will lie within State of Alaska oil and gas lease ADL 381203, and the bottom -hole location of the well will lie within State of Alaska oil and gas lease ADL 374002. 4. Wells RU Nos. 2A and 6 currently produce, or are capable of producing from the Redoubt Shoal Undefined Oil Pool within the same governmental quarter section as the planned well RU-713. 5. RU-713 will be within 1,000 feet of service well RU-6 that injects water into the same pool. 6. RU-7, the current downdip completion, is nearing its economic limit with low production rates and high water cut. 7. RU-713 will access oil reserves at a structurally advantageous location and is expected to provide an increase in production rates and add additional reserves over those capable of capture from existing wells. 8. The AOGCC received no comments, objections or protests in response to the public notice regarding the proposed RU-713 well or to the notification sent by CIE to all known owners, landowners, and operators within 1,000 feet of the RU-713 well. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow drilling and completion of the RU-713 development oil well. 2. RU-713 will recover reserves that are not accessible to existing development wells. 3. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the RU-713 development oil 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 No. 712 January 8, 2015 Page 3 of 3 NOW THEREFORE IT IS ORDERED: CIE's November 17, 2014 application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling and completion of the RU-713 development oil well within the Redoubt Shoal, Undefined Oil Pool is hereby approved as long as CIE complies with the terms of all lease agreements, applicable Alaska laws, and all other legal requirements. DONE at Anchorage, Alaska and dated January 8, 2015. Cathy/P. Foerster Daniel T. Seamou Jr. avi ayberry Chair, Commissioner Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on aweekend or state holiday. Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, January 08, 2015 3:05 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); AKDCWeIIIntegrityCoordinator, 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 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; 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 Duncan; 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; Dickenson, Hak K (DNR); 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 J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott To: 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: co712 (Redoubt Shoal Unit 713) (CIE) Attachments: co712.pdf 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 David Hall Richard Wagner Darwin Waldsmith CEO Post Office Box 60868 Post Office Box 39309 Cook Inlet Energy, LLC Fairbanks, AK 99706 Ninilchik, AK 99639 601 W. 5`" Ave., Ste. 310 Anchorage, AK 99501 State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W. 7th Ave., Ste. 1100 Anchorage, AK 99503 r'JL1c i�Q cS. Angela K. Singh Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-033. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete a sidetrack oil well in a governmental quarter section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received November 17, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(d) allowing drilling and completion of offshore sidetrack oil well RU 7B in the Redoubt Unit within the same governmental quarter section as, and within 1000' of, wells that are, or may be capable of, producing from the same pool. RU 7B Surface Location: 1962' from the south line and 271' from the east line of Section 14, T7N, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 1056' from the north line and 1668' from the west line of Section 19, T7N, R13W, S.M. Bottom -hole Location: 1136' from the north line and 2246' from the west line of Section 19, T7N, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 13, 2015, at 9:00 a.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 December 8, 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 December 21, 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 December 23, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the January 13, 2015 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than December 28, 2014. Cathy . Foerster Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUB,NII1 INN OICI? SIIONI'ING ADI'1?R'1'ISING ORDER NO, CERTIFIED AFFIDANITOFI'IlBI_ICGNI'IONNIIIH.NII'NCiiEDCOPN'OFADN'ER'rISNIENF• ADVERTISING ORDER NUMBER AO-15-011 FROM: Alaska Oil and Gas ConserNation Commission AGENCY CONTACT: Jody Colon)bie/Samantha Carlisle DATE OF A.O. 11/19/14 1(907) AGENCY PHONE: 793-1221 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: Publish 11/20/14. FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 TYPE OF ADVERTISE F LEGAL �k F DISPLAY $ � r � CLASSIFIED � r OTHER (Specify below) g AN DESCRIPTION PRICE CO-14-033 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION NVITH ATTACHED COPY OF ADVERTISMENT TO: Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Page 1 of 1 Total of All Pa es $ Type Number Amount Date Comments I PVN ADN84501 PREF 2 AO AO-15-011 3 4 FIN AMOUNT S1' CC PGM LGR ACCT FY DIST LIQ 1 15 02140100 73451 15 2 3 4 5 Purchasing Authority Name: Title: 7_ Purchasing Authority's Signature Telephone Number h ceAlti, Wk"* 1 nft@hP6fiedllWkWitW@fiil'documents relating to this purchase 2 The state is registered for tax free transactions under Chapter 32, IRS code Registration number 92-73-0006 K Items are for the exclusive use of the state and not for resale DISTRIBUTION: Division Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving Form:02-901 Revised: 11/19/2014 270227 0001353972 $ 268.94 NOV 2 5 20,il" AFFIDAVIT OF PUBLICATION' k._ GCC STATE OF ALASKA THIRD JUDICIAL DISTRICT Kayla Lavea being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on November 20, 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 al arll_e� Subscribed and sworn to before me this 20th day of November, 2014 4,4 1 A_/W Notary P ` is in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES 1;)rJ��l�� Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-033. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(3) to drill and complete a sidetrack oil well in a governmental quarter section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received November 17, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(d) allowing drilling and completion of offshore sidetrack oil well RU 7B in the Redoubt Unit within the same governmental quarter section as, and within 1000' of, wells that are, or may be capable of, producing from the same pool. RU 711 Surface Location: 1962' from the south line and 271' from the east line of Section 14, T7N, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 1056' from the north line and 1668' from the west line of Section 19, T7N, R13W, S.M. Bottom -hole Location: 1136' from the north line and 2246' from the west line of Section 19, T7N, R13W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 13, 2015, at 9:00 a.m. at 333 W. 7th Ave., Anchoragge, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on December 8, 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 December 21, 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 December 23, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the January 13, 2015 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than December 28, 2014. AO-15-011 Published: November 20, 2014 Cathy P. Foerster Chair, Commissioner Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 19, 201412:40 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); 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 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, 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 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; Rose Jacki; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky, Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Steve Kiorpes; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Dickenson, Hak K (DNR); Hans Schlegel (hans.schlegel@ge.com); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Todd, Richard J To: (LAW); Tostevin, Breck C (LAW); Wayne Wooster, William Hutto; William Van Dyke Subject: Notice of Public Hearing, CO-14-033 Attachments: Notice of Public Hearing, CO-14-033.pdf James Gibbs Jack Hakkila Bernie Karl Post Office Box 1597 Post Office Box 190083 M 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 State of Alaska Richard Wagner Darwin Waldsmith Department of Natural Resources Post Office Box 60868 Post Office Box 39309 Alaska Division of Oil and Gas Fairbanks, AK 99706 Ninilchik, AK 99639 550 W. 71h Ave., Ste. 1100 Anchorage, AK 99503 David Hall CEO Cook Inlet Energy, LLC 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 OLI--�Scs-� Angela K. Singh Cook Inlet Energy_ November 17, 2014 Alaska Oil and Gas Conservation Commission 333 West 7t' Ave., Suite 100 Anchorage, Alaska 99501 Re: Spacing Exception for the Proposed RU 7B Well Dear Commissioners, NOV 17 2014 Cook Inlet Energy, LLC (CIE) hereby applies for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(3). Specifically, CIE requests approval to drill a sidetrack well, RU 7B, into a governmental quarter section which contains other oil wells producing or capable of producing from the same pool. CIE proposes to drill the sidetrack RU 7B Well from an offshore location from the Osprey platform located within Section 14, T. 7 N., R. 14 W., S.M., 1,962 feet from the south line and 271 feet from the east line. The RU 7B Well will have a bottomhole location within Section 19, T. 7 N., R. 13 W., 1,136 feet from the north line and 2,246 feet from the west line. The top of the Hemlock productive zone is anticipated to fall roughly 1,056 feet from the north line and 1,668 feet from the west line of Section 19. CIE is planning to test and potentially produce from zones within Section 19, T. 7 N., R. 13 W., S.M. RU-7B is being sidetracked to a higher structural position in order to capture additional reserves not currently capable of being produced from existing wells. As planned, the well will penetrate the Hemlock on the upthrown side of a small down -to -the -North normal fault.The well is interpreted to be the highest penetration drilled in the field to date. Although the normal fault is not thought to be entirely sealing, drilling the RU-713 into the highest closing contour in the field should add additional rate and reserves over those capable of capture at the current RU-7 location. The current downdip completion is currently only producing between 35-50 BOPD with high water cut and is nearing economic limit. The attached Exhibit A lists the Landowners, Owners, and Operators within 1,000 feet of the RU 7B Well and their contact information. The attached Exhibit B is a plat showing the location of RU 7B 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. 601 W. 511 Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 fax Spacing Exception for Proposed RU 7B Well November 17, 2014 The attached Exhibit D is an affidavit from Mr. Tim Jones, Registered Professional Landman # 84167 and Senior Landman for CIE, verifying the plat and facts contained herein. Respectfully, David Hall CEO Spacing Exception for Proposed RU 7B Well November 17, 2014 EXHIBIT A Landowner Owner Operator As defined in As defined in As defined in AS 31.05.170(7) AS 31.05170(10) 20 AAC 25.990 (46) Legal Description State of Alaska Cook Inlet Cook Inlet ADL 381203 Energy, LLC Energy, LLC T 7N , R 14W , SEWARD MERIDIAN, ALASKA SECTION 13, PROTRACTED, ALL, 640 ACRES, SECTION 14, PROTRACTED, ALL, 640 ACRES, SECTION 23, PROTRACTED, ALL, 640 ACRES, SECTION 24, PROTRACTED, ALL, 640 ACRES, SECTION 25, PROTRACTED, ALL, 640 ACRES, SECTION 26, PROTRACTED, ALL, 640 ACRES THIS TRACT CONTAINS 3,840 ACRES MORE OR LESS State of Alaska Cook Inlet Cook Inlet ADL 374002 Energy, LLC Energy, LLC T 7N , R 13W , SEWARD MERIDIAN, ALASKA SECTION 19, PROTRACTED, ALL, 615 ACRES, SECTION 20, PROTRACTED, ALL, 640 ACRES, SECTION 21, PROTRACTED, ALL, 640 ACRES, SECTION 28, PROTRACTED, ALL, 640 ACRES, SECTION 29, PROTRACTED, ALL, 640 ACRES, SECTION 30, PROTRACTED, ALL, 617 ACRES, SECTION 31, PROTRACTED, ALL, 619 ACRES, SECTION 32, PROTRACTED, ALL, 640 ACRES, SECTION 33, PROTRACTED, ALL, 640 ACRES THIS TRACT CONTAINS 5691 ACRES MORE OR LESS Contact Information: State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99503 907-269-8800 Cook Inlet Energy, LLC 601 W. 50i Avenue, Suite 310 Anchorage, AK 99501 907-334-6745 CERTIFIED MAIL 7014 0150 0001 6013 4986 CERTIFIED MAIL 7014 0150 0001 6013 4993 Spacing Exception for Proposed RU 7B Well November 17, 2014 10:4011:3181 T. 7 N., R. 13 W., S.M. 1 128 I 1A 1 Top of 7B Pemlock 500 ft. 500 ft.`�'`�. 7 2 2A '•,� -5 B j Scale = 1:15,840 NEW I 0 1000 2000 3000 ft i 3inj Spacing Exception for Proposed RU 713 Well November 17, 2014 EXHIBIT C _ Cook Inlet Energy_ November 17, 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 RU 7B Sidetrack 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 will submit a Permit to Drill for the RU 7B sidetrack well and is applying for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(3 ). CIE plans to drill the RU 7B sidetrack well for oil within the same governmental quarter section of another well capable of producing from the same pool. CIE proposes to drill the sidetrack RU 7B well from an offshore location from the Osprey platform located within Section 14, T. 7 N., R. 14 W., S.M., 1,962 feet from the south line and 271 feet from the east line. The RU 7B well will have a bottomhole location within Section 19, T. 7 N., R. 13 W., 1,136 feet from the north line and 2,246 feet from the west line. The top of the Hemlock productive zone is anticipated to fall roughly 1,056 feet from the north lime and 1,668 feet from the west line of Section 19. CIE is planning to test and potentially produce from zones within Section 19, T. 7 N., R. 13 W., S.M. The NW quarter of Section 19 contains another well. RU 2A. 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 1,000 feet of the proposed RU 7B sidetrack well. Please contact me should you require additional information. Sincerely, Tim Jones Senior Landman Distribution List: Alaska Division of Oil and Gas Cook Inlet Energy, LLC 601 W. 5" Avenue, Suite 310, AueionLe, AK "501 (907) 334-6745 `(907) 33"735 fax Spacing Exception for Proposed RU 713 Well November 17, 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 Anchorage and Kenai Recording Districts. 3. The Landowners, Owners and Operators, as defined in relevant state statutes and regulations, identified in Exhibit A are the result of that record search and correct to the best of my knowledge. 4. The well location was taken from Cook Inlet Energy, LLC's Permit to Drill submitted to AOGCC. 5. The Notice in Exhibit C was sent to the Landowners, Owners and Operators identified in Exhibit A by certified mail. Further the affiant kayeth naught. Ivor , - 00-�/)� Timothy Jones ' Date RPL #84167 NOTARY PUBLIC UNITED STATES OF AMERICA § KATY HOOPER STATE OFALASKA STATE OF ALASKA § My Commission Ex ires June 26, 2016 Subscribed and sworn to before on the day of November, 2014. Notary Public My commission expires: (9 1 k-011CO ■ 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: Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 A Signature X AgentL7 Addresse B. C. D of D er from itsm 1? ❑ Y s below: ❑ No ' d1 NOV 2 0- 2014 3. SerLkKW tj Y W Certified Mall® o Priority Mail Exprese 0 Registered ❑ Return Receipt for Mer'chandis ❑ Insured Mail ❑ Collect on Delivery 4. Restricted Delivery? (Extra Fee) 9!rYes 2. Article Number 7014 0150 0001 6013 4993 j (liansfer_from service labeo PS Form 3811, July 2013 Domestic Return Receipt ■ 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 mallplece, or on the front if space permits. 1. Article Addressed to: State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W. 7 h Avenue, Suite 1100 Anchorage, AK 99501 A. signature X ❑ Agent A �.� ( ❑ Addresse B. Recelved by d Name) Dat of Deer from item 1?/ V Yep rss below: ❑ No NOV 2 0 2014 3. X%VZ,w Mali® ❑ Priority Mail Expres ❑ Registered 13 Return Receipt for Merohandis 0 Insured Mall ❑ Collect on Delivery 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number 7 014 0150 0001 6 013 4986 Mansfer from service taboo PS Form 3811, July 2013 Domestic Return Receipt