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Home My WebLink AboutCO 730E 0 CONSERVATION ORDER NO. 730 1. January 23, 2017 BlueCrest Alaska Operating, LLC. for spacing exception Hansen H-14 2. January 27, 2017 Notice of public hearing, affidavit of publication, email distribution, mailings ORDERS 0 0 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7 1h Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating, LLC to drill and complete the Hansen H-14 development oil well 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- 17-002 Conservation Order 730 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-14 Oil Development Well Kenai Borough, Alaska March 15, 2017 1. By 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-14 well within the same governmental quarter sections as development well branch Hansen IA-LI 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-14 development well, 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 Inlet, Kenai Peninsula Borough, Alaska. 2. The proposed Hansen H-14 well 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 CO 729 March 15, 2017 Page 2 of 3 bottom -hole location of 3247 feet from the south line and 2299 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-14 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-14 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H- 14 will be located within the same goverrunental 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 path and bottom -hole location for Hansen H-14 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-14 development well. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-14 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-14 development well 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 dated 4March 15, 2017. Aat e2rest ZDaniel T. e ount, Jr. Chair, Commissioner Commissio er Hollis French 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 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 Randy Frazier Drilling Manager BlueCrest Energy 3301 C St., Ste. 202 Anchorage, AK 99503 Wk-A- &Q� L 0 STATE OF ALASKA * ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7t1 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating, LLC to drill and complete the Hansen H-14 development oil well 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- 17-002 Conservation Order 730 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H- 14 Oil Development Well Kenai Borough, Alaska March 15, 2017 1. By 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-14 well within the same governmental quarter sections as development well branch Hansen 1A-LI 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-14 development well, 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-14 well 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 3247 feet from the south line and 2299 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-14 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- 14 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H- 14 will be located within the same governmental quarter section as development well branch Hansen IA-Ll 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 path and bottom -hole location for Hansen H- 14 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-14 development well. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H- 14 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-14 development well 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. //signature on file// Cathy P. Forester Chair, Commissioner Hsignature on file// Daniel T. Seamount, Jr. Commissioner Hsignature on file// Hollis French Commissioner CO 729 March 15, 2017 Page 3 of 3 AND APPEAL 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 AOCjrCC 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 dale 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 Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711-0055 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin WaIdsmith P.O. Box 39309 Ninilchik, AK 99639-0309 Penny Vadia 399 W. Riverview Ave. Soldotna, AK 99669-7714 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706-0868 f Y"-6- " ( 0 �4 C -( S- k-f - 2- C., k-T 01 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); Paladijczuk, 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@gmail.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; sheffield@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 1-1-141-1 ) Conservation Order 729 development oil well branch Wn the same Cosmopolitan Unit 0 governmental quarter section as a well that is, or Hansen Undefined Oil Pool may be capable of, producing from the same pool. Hansen H-141_1 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 jocil/j, (_'otombi - e Speciai _�bsistant -Ataska 0it aii&�jas ('onsei-ilation ('ornmission 3_�3 West ;7"' _Alvenuie 'Anchovage, _Aiciska Office: (,()0/-) 7�)_�-1221 J'aX: (90/-) 276-7-542 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. 2 INDEXES 0 0 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO- 17-002 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-14 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 1 and Hansen H- 16. Hansen H-14 Surface Location: 2368' FSL, 1517' FEL, Section 02, T04S, RI 5W, Seward Meridian Target Location: 4241' FSL, 820' FEL, Section 33, T03S, RI 5W, Seward Meridian Bottom -hole Location: 3247'FSL, 2299' 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 7�h 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. Cathy . Foerster Chair, Commissioner 0 Randy Frazier Drilling Manager BlueCrest Energy 3301 C St., Ste. 202 Anchorage, AK 99503 � - �Z-� - '2-C) kI Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO-1 7-002 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-14 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- 14 Surface Location: 2368' FSL, 1517' FEL, Section 02, T04S, R15W, Seward Meridian Target Location: 4241' FSL, 820' FEL, Section 33, T03S, RI 5W, Seward Meridian Bottom -hole Location: 3247'FSL, 2299'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 7tb 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 7th 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 fileH Cathy P. Foerster Chair, Commissioner 0 0 STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHO"G ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUNMER AO-17-021 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Satnantha Carlisle DATE OF A.0. 01/26/17 AGENCY PHONE: 1(907) 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 CLASSIFIED E R (Specify 1110010 DESCRIPTION below) PRICE CO-17-002 Initials of who prepared AO: Alaska Non -Taxable 92-600185 F1 . ..... ....... . . . . . . . .............. ... ... ............................ ... .... ...... ................ ...... Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 I Page I of I T of A age 11P s $ REF Type Number Amount Date Comments I PvN ADN89311 2 Ao AO-17-021 3 4 FIN AMOUNT SY Appr Unit PGM LGR Object FY DIST LIQ 1 17 021147717 3046 17 2 3 4 5 Purchasing Ant o ity Naf Title: A Purchasing Authority's Signature Telephone Number 1 A - nd�-, i.� "en e must ap on all invoices and documents relating to this purchase. 2�Tho, i r gi t. e f r �nj,cltio�nuncler Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the state and not for tale. ... . . .. ........ . ......... .................... ............. .. ... . .. ............................................................ .................... ...... ........ : .......... ...... . ................ .................... ................ .............. ......... ... ........ ...... ...... .. ...... . ............ . ..... .. ................................................................... ........... ............ . 'mvi4�n:: 0 . .... ......... ............... ............ ....... ....... ............... ....... ............. ... .......................... .................... Form: 02-901 Revised: 1/26/2017 270227 0001399340 $249.02 STATE OF ALASKA RECEIVE0 JAN 3 12017 AFFIDAVIT OF PUBLICATION AOGCC 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 I 0A"I I D�lj Subscribed and sworn to before me this 27th day of January, 2017 1�4.L& Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES NOtke of Public NOWng STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO-17-002 The application of Bluecrest Energy (Blue;C% J,, fg excV)tion to the spacing requirements of 20 C on the rilling of the Hansen H-14 Well. BlueCrest, by letter dated January 23 2017 requests the Alaska 00 and Gas Conservation Commission (AoG issbe an order for an eneeption to the spaci requirement of 20 IM 25.055 because theAMSIsed as well will be Milled within the Same governmental quarters sas wells Hansen 1AL1 and Hansen H-16. Hansen H-14 Surface Location: 2368' FSL,, 1617' F5L, Section 02, T04S,, R1 Seward Meridian Target Location: 4241' FSL, '20'r FE4 Section 33, 7D3S, R1 5W, Seward Meridian Bottom -hole Location: 3247' �FSL, 2299' FEL, Section 29, T03S, R15W, Seward Meridian The AOGCC has tentative[ thedu d a xpublic, heari on ft An'A'a cat on for March 2 20Y7 sac 9:0( a.m. at 333 Wast % AVW" oral e, Alaska 99§61. T6 reques: that�the tentatively scjjW hear' ge :held, a. written request ML st tW Mod With t�e AOGCC no Tgan 4 30 p.m later t on February 14, 20' 7. If a request for a hearing i� not time filedi the AOGCC consider the issuance of an order without a 2arinn To learn if the OGCC will hold the hearing, call (907) 793-1221 after ebruary 20, 2017. C r a '0 in addition, written comments re V.ptling this application 'may be submitted to the AOGCC, at 333 W 7th Avenue, Anchorage, I b 99501. Comments must be received no- later than 4:30, p.m. on Febrya,� 28, 2017 except that if.a hea ' Is held, comments must be receive no later than the conclusion ofUMarCh 2, 2017 hearing. if, because of a disabilit I to .y, special accommqdations may be needed to comment or attend theliearin Contact A0GCC'$ Special Assi$bft Jody Colombie, at (907) 793-12S1, no. later than February 27, 2017. a r Published: January 27, 2017 ARJTW�Qywy Public my corivr4taft L. TWAV$ft Of Ajosib 606i Feb 23. 0 0 Bernie Karl Gordon Severson Penny Vadla M Recycling Inc. 3201 Westmar Cir. 399 W. Riverview Ave. P.O. Box 58055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Fairbanks, AK 99711 George Vaught, Jr. Darwin Waldsmith Richard Wagner P.O. Box 13557 P.O. Box 39309 P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 CL - Z-T - IL c-) � -� - M�' I 0 0 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)'; Trystacky, 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.paladijczuk@alaska.gov)';'Pasqual, 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; 'AKDCWelllntegrityCoordinator'; '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- Vend[, 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 (DNR); 'Jacki Rose'; Jdarlington oarlington@gmail.com); 'Jeanne McPherren'; 'Jerry Hodgden'; Jill Simek; 'Jim Watt'; Jim White;'Joe Lastufka'; Joe Nicks;'John Burclick'; 'John Easton'; John Larsen; 'John Stuart'; Jon Goltz; Josef Chmielowski; 'Juanita Lovett'; 'Judy Stanek'; Kari Moriarty, 'Kasper Kowalewski';'Kazeem Aclegbola'; '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'; Shellenbaum, 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;'Graharn 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' 1 0 Subject: PublilRotices (BlueCrest-Spacing Exceptions) Attachments: CO-17-002 Public Hearing Notice Hansen H-14.pdf, CO-17-003 Public Hearing Notice Hansen H-14LI.pdf Please see attached. 'Jody J. Cotombie -AO('('C SPecial Assistant _Ataska Oilantf (jas Consei-vation Commission 3S3 'West 7"' -Avenue -An choi-atle, -At-aska Oftl(T: (�C)07) 7�)3-1221 _',VaX: (_QO-) 2;76-7542 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. ZuNst Ene'rigy RECEIVED JAN 2 3 2017 January 23, 2017 AWCOCC Alaska Oil and Gas Conservation Commission 333 West 7 th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception for H14 Onshore Horizontal Producer Dear Commissioners, Cosmopolitan Project BlueCrest Energy - H14 Spacing Exception AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Randy Frazier Phone: (907) 754-9559 Email: rfrazier@bluecrestenergy.com BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H14. H14 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. sin rely, Randy 'ra7ier'� Drilling Manager q�k� BlueCrest Energy - H14 Spacing Exception—AOGCC • • llueNest Energy Application for Spacing Exception Horizontal Producer H14 Table of Contents Cosmopolitan Project H14 Application for Spacing Exception 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 Attachment 1 Spacing Exception Platt......................................................................................................... 3 Attachment2 Affidavit.............................................................................................................................. 3 Attachment 3 Notification Information....................................................................................................... 3 1IPage H14 Application for Spacing Exception • nuest Energy Cosmopolitan Project H14 Application for Spacing Exception 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) 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 some 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, 000feet 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, 000feet to any well drilling to or capable of producing from the same 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 Application for Spacing Exception nuest 0 0 En&gy Cosmopolitan Project H14 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 1 Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3lPage H14 Application for Spacing Exception lueNest Energy Attachment 1--, Spacing Exception Platt Cosmopolitan Project H14 Spacing Exception Attachments H14 Spacing Exception Attachments H14 Hansen 1A Co A; 4-- Qmg- 71441816.09 Easting: 168,853.29 GSC; 236 FSL, 1517' FEL, Sec. 02, T4S, R15W SM Top of -tius Worizon - H14e Nort hi 2,152,238.91 Eastin 159,183.85 GSC: 241' FSL, 820' FEL, Sec. 33, T35, RlSW SM Dep : 15,022' MD/ 7,080' TVD To al Depth - H14: rthing: 2,IS6,715.00 asting: 152,542.00 GSC: 3247' FSL, 2299' FEL, Sec. 29, T Depth: 23,032' MD/ 7,080 TVD i iADL391904 1 H 14 with 1000' Radius a ound Production Section ADL—l—T, ICP hkof S*t*, MD: 1022.60 -C . T.",I, Q 1 �, - SCP MD: 0 1000 2000 3000 4000 5000ftUS W m 0 1 1 Ej 1:30000 PEI 0 • IlueNst Energy Attachment 2: Affidavit Cosmopolitan Project H14 Spacing Exception Attachments H14 Spacing Exception Attachments lue��est En edrgy 0 BI!Crest 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 7h Avenue Suite # 100 Anchorage, AK 99501 Re: Spacing exception for the proposed H14 well Dear Sirs, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H14 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 3 VIJ I I The foregoing instrument was acknowledged before me on this.�, day of 2017, by Andrew A. Buchanan. Notary Public in and for Alaska My commission Expires: _ 12- Bruni H. Warrick Notary Public, State of Alaska Commission # 141201020 My Commission Expires December 1, 2018 Aev !ue st > ` Energy AttachmenttV 3: Cosmopolitan Project H14 Spacing Exception Attachments H14 Spacing Exception Attachments • • nluest Energy Alaska Department of Natural Resources — Units Section, Division of Oil and Gas Unit Manager 550 W 71h Ave, Suite 1100 Anchorage, Alaska 99501-3560 ft1 I" , .ti��.�'�h`Firr_ fl1co 0- FEE- sJl� m rv� a- Faes t ow i 4 `[,�r��,m pardcaM i �,�, Gea Ono*."Am*%,**md r t f ._ 3�, W l IMt+M►iMt r' ` C3 { GprAWvboV *'kt`otW� A" SW%Ikre fieste4td DoW y i } O �❑ $(1. 98 Alaska Depertincnt of Natural Resources - Units section Division of 0*11 and Gas Unit Manager W With Ave. Susie 1100 Anchorage, Alaska 99601-3W Cosmopolitan Project H14 Spacing Exception Notification Information H14 Spacing Exception Notification Information nuest Energy Bureau of Ocean Energy Management —Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503 Sent: 01/23/2017 a, go co U1 CU Cr rn C3 c 0 AM Fee 1-3 35 5&i &Cr# .e5 a fete prep` rw. Aw k I �7ca r�>�tra orawtr � CJ"it U nk*vrn .=twl Lavcvrr 3 ,R U1/23 ?,CIS Bureau of Crean Energy Management - Alaska Legion Office of Leasing and Plans 3801 Ccn*erRulrrt Drive, Suite 500 Anchorage, Alaska 99503 • Cosmopolitan Project H14 Spacing Exception Notification Information H14 Spacing Exception Notification Information