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Home My WebLink AboutCO 7290 CONSERVATION ORDER NO. 729 1. January 23, 2017 BlueCrest Alaska Operating, LLC. for spacing exception Hansen H-14A I 2. January 27, 2017 Notice of public hearing, affidavit of publication, email distribution, mailings ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 71h Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating, LLC to drill and complete the Hansen H-14LI development oil well branch within the same governmental quarter section as a well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO- 17-003 Conservation Order 729 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-14L I Oil Development Well Branch Kenai Borough, Alaska March 15, 2017 I , By a letter received January 23, 2017, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the spacing requirements of 20 AAC 25.055 to drill the Hansen H- 14L I well branch within the same governmental quarter sections as development well branch Hansen I A-L I and development well Hansen H- 16, which 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 March 2, 2017. On January 27, 2017, 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 January 27, 2017, the AOGCC published the notice in the ALASKA DISPATCH NEWS. Pursuant to 20 AAC 25.055(d)(1), BlueCrest sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the proposed Hansen H-14Ll development well branch, i.e., the Bureau of Ocean Energy Management and the State of Alaska. BlueCrest provided the AOGCC the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding BlueCrest's application. 5. The tentatively scheduled public hearing was vacated on February 22, 2017. 6. BlueCrest's application provided sufficient information upon which to make an informed decision. FINDINGS: 1. BlueCrest is the operator and sole working interest owner of the Cosmopolitan Unit, which is located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The proposed Hansen H-14Ll well branch will be a horizontal development well drilled from an onshore surface location of 2368 feet from the south line and 1517 feet from the east line of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.) to an CO 729 March 15, 2017 Page 2 of 3 offshore bottom -hole location of 3126 feet from the south line and 1921 feet from the east line of Section 29, Township 3 South, Range 15 West, S.M. 3. The surface location for the proposed Hansen H-14LI lies on private property. The top - of -productive -interval and bottom -hole locations will lie within State of Alaska leases ADL 18790 and ADL 384403, respectively. 4. Hansen H- 14L I will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-14LI will be located within the same governmental quarter section as development well branch Hansen I A-L I and development well Hansen H- 16. 6. Hansen IA-LI and Hansen 16 are, or may be capable of, producing from the Hansen Undefined Oil Pool. 7. The well branch path and bottom -hole location for Hansen H-141,1 were chosen —based on reservoir mapping and modeling results —to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: I . An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H-14LI development well branch 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H- 141, 1 well will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: AOGCC grants BlueCrest's January 23, 2017, application for an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the Hansen H- I 4L I development well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements. DONE � Cat$h Chair C 17. CO 729 March 15, 2017 Page 3 of 3 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 I 0-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. 9 0 Randy Frazier Drilling Manager BlueCrest Energy 3301 C St., Ste. 202 Anchorage, AK 99503 s-\-1-2-CA-T 0 STATE OF ALASKA 0 ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 711 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating, LLC to drill and complete the Hansen H-14LI development oil well branch within the same governmental quarter section as a well that is, or may be capable of, producing from the same pool. I t W-1 14 a 0.1- - I,, Ey 11 Docket Number: CO- 17-003 Conservation Order 729 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H- I 4L I Oil Development Well Branch Kenai Borough, Alaska March 15, 2017 1. By a letter received January 23, 2017, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the spacing requirements of 20 AAC 25.055 to drill the Hansen H- I 4L I well branch within the same governmental quarter sections as development well branch Hansen I A-L I and development well Hansen H- 16, which 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 March 2, 2017. On January 27, 2017, 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 January 27, 2017, the AOGCC published the notice in the ALASKA DISPATCH NEWS. 3. Pursuant to 20 AAC 25.055(d)(1), BlueCrest sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the proposed Hansen H- I 4L I development well branch, i. e., the Bureau of Ocean Energy Management and the State of Alaska. BlueCrest provided the AOGCC the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding BlueCrest's application. 5. The tentatively scheduled public hearing was vacated on February 22, 2017. 6. BlueCrest's application provided sufficient information upon which to make an informed decision. FINDINGS: I . BlueCrest is the operator and sole working interest owner of the Cosmopolitan Unit, which is located within the Cook Wet, Kenai Peninsula Borough, Alaska. 2. The proposed Hansen H- 14L I well branch will be a horizontal development well drilled from an onshore surface location of 2368 feet from the south line and 1517 feet from the east line of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.) to an offshore bottom -hole location of 3126 feet from the south line and 1921 feet from the east line of Section 29, Township 3 South, Range 15 West, S.M. CO 729 March 15, 2017 Page 2 of 3 3. The surface location for the proposed Hansen H-14LI lies on private property. The top - of -productive -interval and bottom -hole locations will lie within State of Alaska leases ADL 18790 and ADL 384403, respectively. 4. Hansen H- 14L I will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H- 141, 1 will be located within the same governmental quarter section as development well branch Hansen I A-L 1 and development well Hansen H- 16. 6. Hansen IA-LI and Hansen 16 are, or may be capable of, producing from the Hansen Undefined Oil Pool. 7. The well branch path and bottom -hole location for Hansen H-14LI were chosen —based on reservoir mapping and modeling results —to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H-14LI development well branch 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H- I 4L I well will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: AOGCC grants BlueCrest's January 23, 2017, application for an exception to the well spacing provisions of 20 AAC 25.055(a)(3) to allow drilling, completion, testing, and regular production of the Hansen H- 141, 1 development well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements. DONE at Anchorage, Alaska and dated March 15, 2017. Hsignature on file// //signature on file// Hsignature on file// Cathy P. Forester Daniel T. Searnount, Jr. Hollis French Chair, Commissioner Commissioner Commissioner CO 729 March 15, 2017 Page 3 of 3 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 I 0-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 mixils, 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 Bernie Karl Gordon Severson K&K Recycling Inc. 3201 Westmar Cir. P.O. Box 58055 Anchorage, AK 99508-4336 Fairbanks, AK 99711-0055 George Vaught, Jr. Darwin Waldsmith P.O. Box 13557 P.O. Box 39309 Denver, CO 80201-3557 Ninilchik, AK 99639-0309 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669-7714 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706-0868 %c_( U-10 0 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, March 15, 2017 3:31 PM To: DOA AOGCC Prudhoe Bay; Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); French, Hollis (DOA); Frystacky, Michal (DOA); Guhl, Meredith D (DOA); Kair, Michael N (DOA); Link, Liz M (DOA); Loepp, Victoria T (DOA); Mumm, Joseph (DOA sponsored); Palaclijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Quick, Michael J (DOA); Regg, James B (DOA); Roby, David S (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); AK, GWO Projects Well Integrity; AKDCWelllntegrityCoordinator, Alan Bailey; Alex Demarban; Alexander Bridge; Allen Huckabay, Andrew VanderJack, Ann Danielson; Anna Raff, Barbara F Fullmer, bbritch; bbohrer@ap.org; Ben Boettger, Bill Breclar, Bob Shavelson; Brandon Viator, Brian Havelock; Bruce Webb; Caleb Conrad; Candi English; Cocklan-Vendl, Mary E; Colleen Miller, Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Darci Horner, Dave Harbour, David Boelens; David Duffy; David House; David McCaleb; David McCraine; David Tetta; ddonkel@cfl.rr.com; DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elizabeth Harball; Elowe, Kristin; Elwood Brehmer; Evan Osborne; Evans, John R (LDZX); George Pollock, Gordon Pospisil; Greeley, Destin M (DOR); Gretchen Stoddard; gspfoff, Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jdarlington Oarlington@gmaii.com); Jeanne McPherren; Jerry Hodgden; Jill Simek; Jim Watt; Jim White; Joe Lastufka; Radio Kenai; Burdick, John D (DNR); Easton, John R (DNR); Larsen, John M (DOR); John Stuart; Jon Goltz; Chmielowski, Josef (DNR); Juanita Lovett; Judy Stanek; Kari Moriarty, Kasper Kowalewski; Kazeem Aclegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Frank, Kevin J (DNR); Kruse, Rebecca D (DNR); Gregersen, Laura S (DNR); Leslie Smith; Lori Nelson; Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark. hanley@anadarko.com); Mark Landt; Mark Wedman; Mealear Tauch; Michael Bill; Michael Calkins; Michael Moora; MJ Loveland; mkm7200; Motteram, Luke A; Mueller, Marta R (DNR); Munisteri, Islin W M (DNR); knelson@petroleumnews.com; Nichole Saunders; Nikki Martin; NSK Problem Well Supv, Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady, Renan Yanish; Richard Cool; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly; Sharon Yarawsky, Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Stephanie Klemmer; Stephen Hennigan; Sternicki, Oliver R; Moothart, Steve R (DNR); Steve Quinn; Suzanne Gibson; sheffieid@aoga.org; Ted Kramer, Teresa Imm; Thor Cutler, Tim Jones; Tim Mayers; Todd Durkee; trmjrl; Tyler Senden; Umekwe, Maduabuchi P (DNR); Vinnie Catalano; Well Integrity; Well Integrity, Weston Nash; Whitney Pettus; Aaron Gluzman; Aaron Sorrell; Ajibola Acleyeye; Alan Dennis; Assmann, Aaron A; Bajsarowicz, Caroline J; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Catie Quinn; Corey Munk; Don Shaw; Eric Lidji; Garrett Haag; Smith, Graham 0 (DNR); Dickenson, Hak K (DNR); Heusser, Heather A (DNR); Fair, Holly S (DNR); Holly Pearen; Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Franger, James M (DNR); Morgan, Kirk A (DNR); Umekwe, Maduabuchi P (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Pollard, Susan R (LAW); Talib Syed; Tina Grovier (tmgrovier@stoel.com); Tostevin, Breck C (LAW); Wayne Wooster, William Van Dyke Subject: CO 729 and CO 730 Attachments: co729.pdf, co730.pdf Re: THE APPLICATION OF BlueCrest Alaska Operating, ) Docket Number: CO-17-003 LLC to drill and complete the Hansen H-14L1 ) Conservation Order 729 0 0 development oil well branch within the same ) Cosmopolitan Unit governmental quarter section as a well that is, or ) Hansen Undefined Oil Pool may be capable of, producing from the same pool. Hansen H-14LI Oil Development Well Branch Kenai Borough, Alaska March 15, 2017 Re: THE APPLICATION OF BlueCrest Alaska Operating, ) Docket Number: CO-17-002 LLC to drill and complete the Hansen H-14 ) Conservation Order 730 development oil well within the same ) Cosmopolitan Unit governmental quarter section as a well that is, or ) Hansen Undefined Oil Pool may be capable of, producing from the same pool. Hansen H-14 Oil Development Well Kenai Borough, Alaska March 15, 2017 [t)AIJ. ,Ao(4(,( slicciat -Assistant _Alaska Oil and (jas ('onscvvalioli ('o"I'llission �;33 lVcst 7" -AIT)ILIC .A i i chovagc, -41aska ()Ifi('C: (�()0;7) ;7,9_4-1221 'J'aX: (�)0;7) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iody.colombie@alaska.aov. 2 INDEXES 0 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO- 17-003 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.05 5 for the drilling of the Hansen H- 14L I well. BlueCrest, by letter dated January 23, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen I AL I and Hansen H- 16. Hansen H-141,1 Surface Location: 2368' FSL, 1517' FEL, Section 02, T04S, RI 5W, Seward Meridian Target Location: 4074' FSL, 587' FEL, Section 33, T03S, R15W, Seward Meridian Bottom -hole Location: 3126' FSL, 1921'FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for March 2, 2017, at 9:00 a.m. at 333 West 7th Avenue, 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 February 14, 2017. If a request for a hearing is not timely filed, the AOGCC m ' ay consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after February 20, 2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7 th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on February 28, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the March 2, 2017 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 (907) 793-1221, no later than February 27, 2017. 4Cath P./F�oe�rster 4"' Chair, Commissioner I* Randy Frazier Drilling Manager BlueCrest Energy 3301 C St., Ste. 202 Anchorage, AK 99503 ",k� cL \-,) -I - 'ZO �-T W - 14N Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO- 17-003 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.05 5 for the drilling of the Hansen H- I 4L I well. BlueCrest, by letter dated January 23, 2017, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirement of 20 AAC 25.055 because the proposed well will be drilled within the same governmental quarter sections as wells Hansen 1ALl and Hansen H-16. Hansen H- 14L I Surface Location: 2368' FSL, 1517' FEL, Section 02, T04S, RI 5W, Seward Meridian Target Location: 4074' FSL, 587' FEL, Section 33, T03S, RI 5W, Seward Meridian Bottom -hole Location: 3126' FSL, 192 P FEL, Section 29, T03 S, RI 5W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this application for March 2, 2017, at 9:00 a.m. at 333 West 7th Avenue, 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 February 14, 2017. 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 (907) 793-1221 after February 20,2017. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7h Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on February 28, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the March 2, 2017 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 (907) 793-122 1, no later than February 27, 2017. Hsignature on file// Cathy P. Foerster Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WrM ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUNMER AO-17-022 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.0. 01/26/17 1(907) AGENCY PHONE: 279-1433 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: (907) 276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 CLA s-siFIED LI OTH E R (S pecify be low) LEGAL..:7 , 11111M DESCRIPTION PRICE CO-17-003 Initials of who prepared AO: Alaska Non -Taxable 92-600185 �:::sum . ri�v . 6i . ink . sifcii�TN: . 6. . . 6vk . �h . ft� . i&:: wjfH:A-fm�61ih� Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Page I of 1 Total of All Pages S REF Type Number Amount Date Comments I PvN ADN89311 2 Ao AO-17-022 3 4 FIN AMOUNT SY Appr Unit PGM LGR Object FY DIST LIQ 17 021147717 3046 17 2 3 5 urchasi ut ri' c tie Purchasing Authority's Signature elephone Number 1 - A 1--mr Ig cq,4a 'a rnu4'appear on aii invoices and documents relat ing to this purchase. 2. Th is registered for tax free transactions under Chapter 32, IRS code, Registration number 92-73-0006 K. Items are for the e)clusive use ofthe state and not for resal ............ .... . q F I ......... .......... Div'44 �'A' '*t/.*O'�'f*O'i'Ki'kl':'A"'O.'::'::'::'::, :1 * *. , , * .......... ... ....... D ............... Form: 02-901 Revised: 1/26/2017 270227 0001399341 $249.02 STATE OF ALASKA it RECEIVED JAN 3 12017 AOGCC AFFIDAVIT OF PUBLICATION 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 January 27, 2017 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed Subscribed and sworn to before me this 27th day of January 2017 6 J Notary Public in and for The State of Alaska. Third Division N"I "GO of Pubft Iftarft STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMmISSM Re: Docket Number: CO-17-003 The application Of BlueCrest Ener eXCWrtjon to the Splicing rec ff (BlueCres� for an piremen of 20 AAC 5.055 for the rilling of the Hansen H-1 Ll well. Bluedrest, by letter dated January 23, 2Q17, requests the Alaska oil and Gas Conservation CqMmission (A0GCQ issue an order for an exception to the spaci regui�ement of 20 AAC 25.055 because the proposed well will be 5511led within the same governmental quarter sections as wells Hansen 1AL1 and Hansen H-16. Hansen 1-1-141.1 Surface Location: 2368' FSL, 1517' FEL, Section 02, T04S, RISW, Seward Meridian Target Location: 4074' FSL, 587' FEL, Section 33, T03S, Rj5W, Seward Meridian Bottom -hole Location: 3126' FSL, 1921' FEL, Section 29, T03S, R1SW, Seward Meridian The AQGCC has tentatively scheduled a public hearinc on this application for March 2 2017 at 9*00 a.m. at 333 West 7 A Anchora e, Alaska 99561. To' req' venue uest that the tentatively scl"iR hearing, le held, a written request must be filed with the A0G0C no later t an 4:30 p.m. on February 14, 2017. If a request for a hearing is not timely filed, the AOGCC m% consIder the issuance of, an order without a heari% To learn if the 03CC wOl i hold the hearing call (907) 793-1221 after ebruary 20, 2017. in addition, written comments regardig this application, may. be submitted to the AOGCC, at 333 West 7 Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on Febru:Z 28, 2017 except that if a hearing is held, comments must be receiv no later thah the con6lusion of the March 2, 2017 hearing. if, because of a disability, special accommodations may be needed to comment or attend the hearin contact the AOGCC's Sl Assis Jody Colombie, at (907) 793-12611, no later than February V, 2017. taint, //siTature on file// athy P. Foerster Chair, Commissioner Published: January 27, 2017 Anchorage, Alaska Nagy Pt MY COMMISSION EXPIRES Z 6b 0 0 Bernie Karl Gordon Severson K&K Recycling Inc. 3201 Westmar Cir. P.O. Box 58055 Anchorage, AK 99508-4336 Fairbanks, AK 99711 George Vaught, Jr. Darwin Waldsmith P.O. Box 13557 P.O. Box 39309 Denver, CO 80201-3557 Ninilchik, AK 99639 Penny Vadia 399 W. Riverview Ave. Soldotna, AK 99669-7714 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 V A -a. � " CL 2-c-Al Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, January 26, 2017 10:04 AM To: aogcc.inspectors@alaska.gov, 'Bender, Makana K (DOA) (makana.bender@alaska.gov)'; 'Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov)'; 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)'; Carlisle, Samantha J (DOA);'Colombie, Jody J (DOA) Oody.colombie@alaska.gov)'; 'Davies, Stephen F (DOA) (steve.davies@alaska.gov)'; Eaton, Loraine E (DOA);'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)'; 'French, Hollis (DOA)'; "Frystacky, Michal (michal.frystacky@alaska.gov)'; 'Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov)'; Kair, Michael N (DOA); 'Link, Liz M (DOA)'; Loepp, Victoria T (DOA); 'Mumm, Joseph (DOA sponsored) Ooseph.mumm@alaska.gov)';'Paladijczuk, Tracie L (DOA) (tracie.pa lad ijczu k@a laska.gov)'; 'Pasqua 1, Maria (DOA) (maria.pasqual@alaska.gov)'; 'Quick, Michael (DOA sponsored)'; 'Regg, James B (DOA) Oim.regg@alaska.gov)'; 'Roby, David S (DOA) (dave.roby@alaska.gov)'; 'Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov)';'Seamount, Dan T (DOA) (dan.seamount@alaska.gov)'; Singh, Angela K (DOA); 'Wallace, Chris D (DOA) (chris.wallace@alaska.gov)'; AK, GWO Projects Well Integrity; 'AKDCWellIntegrityCoordinator'; 'Alan Bailey'; 'Alex Demarban'; 'Alexander Bridge'; 'Allen Huckabay'; 'Andrew VanderJack'; 'Ann Danielson'; Anna Raff, 'Barbara F Fullmer'; bbritch; Becky Bohrer, 'Ben Boettger'; 'Bill Breclar'; Bob; Brandon Viator, 'Brian Havelock'; 'Bruce Webb'; 'Caleb Conrad'; 'Candi English'; Cocklan- Vendl, Mary E; Colleen Miller;'Connie Downing'; Crandall, Krissell;'D Lawrence';'Dale Hoffman'; 'Dave Harbour'; David Boelens;'David Duffy'; David House;'David McCaleb';'David McCraine'; 'David Tetta'; 'ddonkel @cfl.rr.com'; 'DN ROG Units';'Donna Ambruz';'Ed Jones'; 'Elizabeth Harball'; Elowe, Kristin;'Evan Osborne'; Evans, John R (LDZX); 'Gary Oskolkosf'; 'George Pollock'; Gordon Pospisil; Greeley, Destin M (DOR);'Gretchen Stoddard'; gspfoff,- Hurst, Rona D (DNR); Hyun, James J (DN R); 'Jacki Rose'; Jdarlington Oarlington@gmail.com); 'Jeanne McPherren'; 'Jerry Hodgden'; Jill Simek; 'Jim Watt'; Jim White;'Joe Lastufka'; Joe Nicks;'John Burdick'; 'John Easton'; John Larsen; 'John Stuart'; Jon Goltz; Josef Chmielowski; 'Juanita Lovett'; 'Judy Stanek'; Kari Moriarty; 'Kasper Kowa lewski'; 'Kazeem Adeg bola'; 'Keith Torrance'; Keith Wiles; Kelly Sperback; Kevin Frank, Kruse, Rebecca D (DNR); Laura Silliphant (laura.gregersen@alaska.gov); Leslie Smith; Lori Nelson; Louisiana Cutler, 'Luke Keller'; 'Marc Kovak'; Mark Dalton; Mark Hanley (mark.hanley@anadarko.com); 'Mark Landt';'Mark Wedman';'Mealear Tauch';'Michael Bill'; Michael Calkins; 'Michael Moora'; MJ Loveland; mkm7200; Mueller, Marta R (DNR); Munisteri, Islin W M (DNR); nelson; Nichole Saunders; Nikki Martin; NSK Problem Well Supv; Patty Alfaro; 'Paul Craig'; Paul Decker (paul.decker@alaska.gov); 'Paul Mazzolini'; Pike, Kevin W (DNR); Randall Kanady, 'Renan Yanish'; 'Richard Cool'; 'Robert Brelsford'; 'Ryan Tunseth'; Sara Leverette; 'Scott Griffith'; Shahla Farzan; Shannon Donnelly; Sharmaine Copeland; 'Sharon Yarawsky'; Shellenbaurn, Diane P (DNR); Skutca, Joseph E (DNR); Smart Energy Universe; Smith, Kyle S (DNR); 'Stephanie Klemmer'; 'Stephen Hennigan'; Sternicki, Oliver R; Steve Moothart (steve.moothart@alaska.gov); 'Steve Quinn';'Suzanne Gibson';'Tamera Sheffield';'Ted Kramer'; 'Temple Davidson'; 'Teresa Imm'; 'Thor Cutler'; 'Tim Jones'; 'Tim Mayers'; 'Todd Durkee'; 'trmJrl'; 'Tyler Senden'; Umekwe, Maduabuchi P (DNR);'Vinnie Catalano';'Well Integrity'; 'Well Integrity'; 'Weston Nash'; 'Whitney Pettus'; 'Aaron Gluzman'; 'Aaron Sorrell'; Ajibola Acleyeye; Alan Dennis; Assmann, Aaron A; Bajsarowicz, Caroline J; 'Bruce Williams'; Bruno, Jeff J (DNR); Casey Sullivan; Catie Quinn;'Don Shaw'; Eric Lidji; Garrett Haag;'Graham Smith'; Hak Dickenson; Heusser, Heather A (DNR); Holly Fair, Holly Pearen; Jamie M. Long; 'Jason Bergerson'; Jesse Chielowski; 'Jim Magill'; Joe Longo; John Martineck; Josh Kindred; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; 'Marie Steele'; Matt Armstrong; 'Mike Franger'; Morgan, Kirk A (DNR); Pascal Umekwe; Pat Galvin; 'Pete Dickinson'; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; 'Ryan Daniel'; 'Sandra Lemke'; 'Susan Pollard'; Talib Syed; Tina Grovier (tmgrovier@stoel.com); Tostevin, Breck C (LAW); 'Wayne Wooster'; 'William Van Dyke' Subject: Publictotices (BlueCrest-Spacing Exceptions) 0 Attachments: CO-17-002 Public Hearing Notice Hansen H-14.pdf, CO-17-003 Public Hearing Notice Hansen H-14L1.pdf Please see attached. Jody J. Cotonlbie _A0(jC'C speciat__�b'sistant Atask(,7 oilan(,((�as COnservation Commission 333 'V�'eSt ;7"' A'11eJ7[1e Ancho),age, At-aska Office: (,C)0,7) 7'�)_�-1221 FaX: (�007) 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 unauthofted review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iody.colombie@alaska.aov. Z N e est Ene'risy Cosmopolitan Project BlueCrest Energy - H14-LI Spacing Exception AOGCC RECEIVELO) 3301 C Street, Suite 202, Anchorage, AK 99503 Randy Frazier JAN 2 3 2017 Phone: (907) 754-9559 Email: rfrazier@bluecrestenergy.com January 23, 2017 A 0 G C' (Do Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception for H14-LI Onshore Horizontal Producer Dear Commissioners, BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H1441. H14-Ll will lie within the same governmental quarter sections as, Hansen 1AL1 and H16, development oil wells that are open to the Cosmopolitan Undefined Oil Pool and are, or expecting to be, actively producing oil. Accordingly, an exception to statewide spacing requirements is requested. BlueCrest Energy is the only effected working interest owner and operator within the leasehold contacting the Cosmopolitan Undefined Oil Pool. The Bureau of Ocean Energy Management (BOEM) and Alaska Department of Natural Resources Division of Oil and Gas (ANDR DOG) have been notified of BlueCrest Energy's intent to submit this application for exception. The necessary documentation confirming notice is included in the attached. Please find attached for the review of the Commission the information required by 20 ACC 25.055 for this well bore. If you have any questions or require further information, please do not hesitate to contact Joseph Longo at 907-754-9561. Randy Frazier Drilling Manager BlueCrest Energy - H14-Ll Spacing Exception_AOGCC 0 nluest Energy Application for Spacing Exception Horizontal Producer H14-Ll Cosmopolitan Project H14-L1 Application for Spacing Exception Table of Contents 20 AAC 25.055. Drilling units and well spacing .......................................................... 2 1. Requirements of 20 AAC 25.055 (a) ........................................................................ 2 2. Requirements of 20 AAC 25.055 (b) ....................................................................... 2 3. Requirements of 20 AAC 25.055 (c) ........................................................................ 2 4. Requirements of 20 AAC 25.055 (d) ....................................................................... 3 5. Attachments ............................................................................................................. 3 Attachment1 Spacing Exception Platt ......................................................................................................... 3 Attachment2 Affidavit .............................................................................................................................. 3 Attachment 3 Notification Information ....................................................................................................... 3 11 P a g e H14-Ll Application for Spacing Exception • Ily est Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) • Cosmopolitan Project H14-L1 Application for Spacing Exception The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 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; Not Applicable - Well is not within 500' of the federal lease line (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 some on both sides of the line; Not Applicable - Wellbore is drilling for oil. (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool, Please see Attachment 1: Spacing Exception Platt (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 some pool. Not Applicable -Target is the Cosmopolitan Undefined Oil Pool 2. Requirements of 20 AAC 25.055 (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100. BlueCrest Energy is the only operator and 100% working interest owner within the Cosmopolitan Unit. 3. Requirements of 20 AAC 25.055 (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. The leases currently being exploited by BlueCrest Energy all fall within the currently unitized Cosmopolitan Unit. Pool rules are not currently identified. 21Page H14-L 1 Application for Spacing Exception nuest 0 Energy Cosmopolitan Project H144-1 Application for Spacing Exception 4. Requirements of 20 AAC 25.055 (d) The commission will review an application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought, BlueCrest Energy LLC Alaska Division of Natural Resources (ADNR) Bureau of Ocean Energy Management (BOEM) Please see Attachment 3: Notification Information (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought all other completed and drilling wells on the property, and all adjoining properties and wells, and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Please see Attachment 2: Affidavit S. Attachments Attachment I Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3 1 P a g e H14-L1 Application for Spacing Exception Ilu est Energy tic W pacing Exception Platt Cosmopolitan Project H14-L1 Spacing Exception Attachments H14-L 1 Spacing Exception Attachments H14L1 with 1000' Radius round Production Section" ,440 ADL3919031 H14L1 Hansen 1A Surface UPrdinates: Northing: ,144,816.09 Fasting: 168,853.29 GSC: 23 FSL, 1517' FEL, Sec. 02, T4S, R15W SM Top of up Horizon - H14-L1: Northi g: 2,152,065.52 Easti 159,412.16 GSC- 4074' FSL, 587' FEL, Sec. 33, TM, R15W SM De h: 14,735' MD/ 7,060' TVD T tal Depth - H14-L1: orthing: 2,156,583.00 asting: 152,917.00 GSC: 3126' FSL, 1921' FEL, Sec. 29, S, R15W SM Depth: 22,713' MD/ 7,077' TVD ADL391904 ICP st i MD: 15022.60 ADL18 9 &tC J, T- R-, 3M SCP MD: 0 1000 2000 3000 4000 5000ftUS 1:30000*� • • llueNest Energy Attachment 2: Cosmopolitan Project H14-L1 Spacing Exception Attachments H14-L1 Spacing Exception Attachments lue��est ' Enkgy 0 E HlueGrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 January 23, 2017 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7b Avenue Suite# 100 Anchorage, AK 99501 Re: Spacing exception for the proposed H14-LI well Dear Sirs, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H14-L I well. 1, Andrew Buchanan, verify that facts stated are true and the plat correctly portrays all pertinent and required data. Regards, Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone (907) 754-9563 The foregoing instrument was acknowledged before me on this (�33 �day ( f 2017, by Andrew A. Buchanan. Bruni H. Warrick Notary Public, State of Alaska Commission # 141201020 Notary Public in and for Alaska My Commission Expires My commission Expires: _ 12-11 L2- 0/8� December 1, 2018 1 IeC;iest Energy Notification Information Cosmopolitan Project H14-L1 Spacing Exception Attachments H14-L 1 Spacing Exception Attachments nuest Energy Alaska Department of Natural Resources — Units Section, Division of Oil and Gas Unit Manager 550 W 7rh Ave, Suite 1100 Anchorage, Alaska 99501-3560 Sent: 01/23/2017 U.S. Postal Service" CERTIFIED MAIL'', RECEIPT Domestic Mail Oniv rot delivery information, v,srt our wsbalte at www.U$PS.torrt•. cr- rn & f40- t+ a*iK.W ru ❑riFwlPAnip(r.cu.t1W 5......�_,.- • P►Ot�11Wk E3 [JAdA - [�AauRwMadfY i _... Alaska Department of Natural Resources Unfta Section Division of Oil and Gas Unit Manager 55C '017th five, Suite 1100 Anchorage, .Alaska 59501-356U LJ Cosmopolitan Project H14-Ll Spacing Exception Notification Information H14-L1 Spacing Exception Notification Information • • Bureau of Ocean Energy Management —Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503 Sent:01/23/2017 r-q Domestic Only, S 00 Ln NO Carped Mail fee 177 +tea oa•, aav o R.Lm Rcoei't #wi-"1 s _ rU r]p*wm ftmew Mruoo+ra to OCelli! NW ft"11C E 00t�s t HMO-, C3 OAAMSVW WR.quttd ©AOuk$I�Wweilav�d.dOMio.ry i ___ ____ +' tl�si? 0/123/2017 $ 7 . P, . Bureau of Ocean Energy Management —Alaska Region Office of Leasing and Plans '3801 Genterpoint Drive, Suite 500 Anchorage, Alaska 99503 Cosmopolitan Project H14-L1 Spacing Exception Notification Information H14-L1 Spacing Exception Notification Information