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Home My WebLink AboutCO 733CONSERVATION ORDER 733 Docket Number: CO -17-011 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-12 Oil Development Well Kenai Borough, Alaska 1. April 18, 2017 B1ueCrest's request for spacing exception 2. April 20, 2017 Notice of hearing, affidavit of publication, email distribution, mailings ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska ) Docket Number: CO -17-011 Operating, LLC to drill and complete the Hansen ) Conservation Order 733 H-12 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-12 ) Oil Development Well ) Kenai Borough, Alaska June 6, 2017 IT APPEARING THAT: By letter received April 18, 2017, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the spacing requirements of 20 AAC 25.055 to drill the Hansen H-12 development oil well within the same governmental quarter sections as development oil wells Hansen H-14 and Hansen H-16 and development oil well branches Hansen 1ALI, Hansen H -14L1 and Hansen H - 16L1, which are, or may be capable of, producing from the same pool. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for May 25, 2017. On April 19, 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 April 20, 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-12 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 B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated on May 15, 2017. 6. B1ueCrest'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-12 well will be a horizontal development oil well drilled from an onshore surface location of 2329 feet from the south line and 1524 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 2560 feet from the south line and 2712 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-12 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-12 will target reservoirs within the Hansen Undefined Oil Pool. CO 733 June 6, 2017 Page 2 of 2 5. Hansen H-12 will be located within the same governmental quarter section as development oil wells Hansen H-14 and Hansen H-16 and development oil well branches Hansen lALl, Hansen H -14L1, and Hansen H -16L1. 6. Hansen lAL1, Hansen H-14, Hansen H -14L1, Hansen H-16, and Hansen H -16L1 are, or may be capable of, producing from the Hansen Undefined Oil Pool. 7. The well path and bottom -hole location for Hansen H-12 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-12 development oil well. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-12 well will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants B1ueCrest's April 18, 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-12 development oil 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 June 6, 2017. 5 Cathy . Forester Daniel T. Seamount, Jr Chair, 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 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 tiled 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. Randy Frazier Drilling Manager BlueCrest Alaska Operating, LLC 3301 C St., Ste. 202 Anchorage, AK 99503 CQ— m STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska ) Docket Number: CO -17-011 Operating, LLC to drill and complete the Hansen ) Conservation Order 733 H-12 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-12 ) Oil Development Well ) Kenai Borough, Alaska June 6, 2017 IT APPEARING THAT: By letter received April 18, 2017, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the spacing requirements of 20 AAC 25.055 to drill the Hansen H-12 development oil well within the same governmental quarter sections as development oil wells Hansen H-14 and Hansen H-16 and development oil well branches Hansen IALI, Hansen H -14L1 and Hansen H - 16L1, which are, or may be capable of, producing from the same pool. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for May 25, 2017. On April 19, 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 April 20, 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-12 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 B1ueCrest's application. 5. The tentatively scheduled public hearing was vacated on May 15, 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-12 well will be a horizontal development oil well drilled from an onshore surface location of 2329 feet from the south line and 1524 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 2560 feet from the south line and 2712 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-121ies 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-12 will target reservoirs within the Hansen Undefined Oil Pool. CO 733 June 6, 2017 Page 2 of 2 5. Hansen H-12 will be located within the same governmental quarter section as development oil wells Hansen H-14 and Hansen H-16 and development oil well branches Hansen TALI, Hansen H -14L1, and Hansen H -16L1. 6. Hansen IALI, Hansen H-14, Hansen H -14L1, Hansen H-16, and Hansen H -16L1 are, or may be capable of, producing from the Hansen Undefined Oil Pool. 7. The well path and bottom -hole location for Hansen H-12 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-12 development oil well. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-12 well will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: The AOGCC grants BlueCrest's April 18, 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-12 development oil 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 June 6, 2017. //signature on file// //signature on file// //signature on file// Cathy P. Forester Daniel T. Seamount, Jr. Hollis S. French 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. 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. Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711-0055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 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 99639-0309 Fairbanks, AK 99706-0868 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, June 06, 2017 2:59 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; AKDCWellIntegrityCoordinator, Alan Bailey; Alex Demarban; Alexander Bridge; Allen Huckabay; Andrew VanderJack; Ann Danielson; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Ben Boettger; Bill Bredar; 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; 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, Hunter Cox; Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jason Brune; 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 Adegbola; 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; Mike Morgan; MJ Loveland; mkm7200; Motteram, Luke A; Mueller, Marta R (DNR); Munisteri, Islin W M (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick Ostrovsky; 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; 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 Adeyeye; Alan Dennis; Andy Bond; Bajsarowicz, Caroline J; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Corey Munk; David Tetta; Don Shaw; Eppie Hogan; Eric Lidji; Garrett Haag; Smith, Graham O (DNR); Dickenson, Hak K (DNR); Heusser, Heather A (DNR); Fair, Holly S (DNR); Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; Shine, Jim M (DNR); Joe Longo; John Martineck; Josh Kindred; Keith Lopez; Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck; Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Melonnie Amundson; Franger, James M (DNR); Morgan, Kirk A (DNR); Umekwe, Maduabuchi P (DNR); Pat Galvin; Pete Dickinson; Peter Contreras; Rachel Davis; 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 733 and CO 734 Attachments: co 733.pdf, co 734.pdf Re: THE APPLICATION OF BlueCrest Alaska Operating, ) Docket Number: CO -17-011 LLC to drill and complete the riansen H-12 ) Conservation Order 713 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-12 Oil Development Well Kenai Borough, Alaska Re: THE APPLICATION OF BlueCrest Alaska Operating, ) Docket Number: CO -17-012 LLC to drill and complete the Hansen H-121_1 ) Conservation Order 734 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-121-1 Oil Development Well Branch Kenai Borough, Alaska Jody J. Co(ombie .AOGCC SpeciaC.Assistant Alaska OiCandGas Conservation Commission 333 West 7`ti .Avenue .Anchorage, .Alaska 99501 Office: (907) 793-1221 _'ax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iodv.colombie@alaska.gov. 2 INDEXES Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-011 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-12 well. BlueCrest, by letter dated April 17, 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 1 AL 1 and Hansen H-16, Hanson H-14 and Hanson H 14L 1. Hansen H-12 Surface Location: 2329' FSL, 1524' FEL, Sec. 2, T4S, R15W, SM Target Location: 3456' FSL, 1068' FEL, Sec. 33, T3S, R15W, SM Bottom -hole Location: 2560' FSL, 2712' FEL, Sec 29, T3S, R15W, SM The AOGCC has tentatively scheduled a public hearing on this application for May 25, 2017, at 10:00 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 May 8, 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 May 12, 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 May 22, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the May 25, 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 May 12, 2017. Cathy. . Foerster Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMEN T. ADVERTISING ORDER NUMBER AO—17-027 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A. 0. AGENCY PHONE: 333 West 7th Avenue 04/19/17 (907)279-1433 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 TYPE OFADVERTISEMENT: LEGAL `DISPLAY CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO -17-011 Initials of who prepared AO: Alaska Non -Taxable 7agfs85$ S+U$MIT:IN.V.cI1eE SIiOWDYG AD�'ERiI91NG: �: :::ORDERPJO.;CERT.IFIEDAFFIDAYITU'F.::: 0uiilmcAhm WITH97TACHEFICOPXOF:: .................................... Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae 1 of 1 - REF Type Number Amount Date Comments I PvN ADN89311 2 Ao AO -17-027 3 4 FIN AMOUNT SY Ap r Unit PGM LGR Object FY DIST LIQ 1 17 021147717 3046 17 2 3 4 ,I Pu chasing tho Tie: Purchasing Authority's Signature Telephone Number 1A.O. # n receivin agency name must appear on all invoices and documents relating to this purchase. iThe Ah'. -s" a 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. ATSTizI13UT Ic3N:::.:: ..... . bivis tiicFiscalNOrt nal A(7 ::::::::: Co iesi: N fisher. faxed :bYvlsiuYi discal T�ecefVi i ::: ..................$1...................1>..............(.....)1..............r.........g............................................ Form: 02-901 Revised: 4/19/2017 270227 0001403758 $229.10 AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Emma Dunlap being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on April 20, 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. Subscribed and sworn to before me this 20th da cAAril Notary Public in and /for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION PIRES ,3/ n I 1 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-011 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-12 well. BlueCrest, by letter dated April 17, 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 1AL1 and Hansen H-16, Hanson H-14 and Hanson H14L1. Hansen H-12 Surface Location: 2329' FSL, 1524' FEL, Sec. 2, T4S, R15W, SM Target Location: 3456' FSL, 1068' FEL, Sec. 33, T3S, R15W, SM Bottom -hole Location: 2560' FSL, 2712' FEL, Sec 29, T3S, R15W, SM The AOGCC has tentatively scheduled a public hearing on this application for May 25, 2017, at 10:00 a.m. at 333 West 7th Avenue Anchoragge, Alaska 99501. To request that the tentatively schedules{ hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on May 8, 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 May 12, 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 May 22, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the May 25, 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 May 12, 2017. Published: April 20, 2017 //signature on file// Cathy P. Foerster Chair, Commissioner ec'er v //t� APR 242017 Randy Frazier Drilling Manager BlueCrest Alaska Operating, LLC 3301 C St., Ste. 202 Anchorage, AK 99503 -c &,I& -CL /-{ - \ cl - k-( Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -17-011 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-12 well. BlueCrest, by letter dated April 17, 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 1AL1 and Hansen H-16, Hanson H-14 and Hanson H141,1. Hansen H-12 Surface Location: 2329' FSL, 1524' FEL, Sec. 2, T4S, R15W, SM Target Location: 3456' FSL, 1068' FEL, Sec. 33, T3 S, R15W, SM Bottom -hole Location: 2560' FSL, 2712' FEL, Sec 29, T3S, R15W, SM The AOGCC has tentatively scheduled a public hearing on this application for May 25, 2017, at 10:00 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 May 8, 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 May 12, 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 May 22, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the May 25, 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 May 12, 2017. Hsignature on fileH Cathy P. Foerster Chair, Commissioner Bernie Karl KBeK Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711-0055 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 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 99639-0309 Fairbanks, AK 99706-0868 A 14-��-`� �T Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, April 19, 2017 11:18 AM To: aogcc.inspectors@alaska.gov; Ballantine, Tab A (LAW); '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); Toerster, 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; 'AKDCWellIntegrityCoordinator'; 'Alan Bailey'; 'Alex Demarban'; 'Alexander Bridge'; 'Allen Huckabay'; 'Andrew VanderJack'; 'Ann Danielson'; Anna Raff; 'Barbara F Fullmer'; bbritch; Becky Bohrer; 'Ben Boettger'; 'Bill Bredar'; 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'; 'Darci Horner'; 'Dave Harbour'; David Boelens; 'David Duffy'; David House; 'David McCaleb'; 'David McCraine'; 'David Tetta'; 'ddonkel@cfl.rr.com'; 'DNROG Units'; '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, 'Hunter Cox'; 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 Burdick'; 'John Easton'; John Larsen; 'John Stuart'; Jon Goltz; Josef Chmielowski; 'Juanita Lovett'; 'Judy Stanek'; Kari Moriarty; 'Kasper Kowalewski'; 'Kazeem Adegbola'; '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; 'Motteram, Luke A'; 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; 'Sharon Yarawsky'; 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'; '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 Adeyeye; Alan Dennis; Bajsarowicz, Caroline J; 'Bruce Williams'; Bruno, Jeff J (DNR); Casey Sullivan; Catie Quinn; Corey Munk; 'Don Shaw'; Eppie Hogan ; Eric Lidji; Garrett Haag; 'Graham Smith'; Hak Dickenson; Heusser, Heather A (DNR); Holly Fair; 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: Public Hearing Notices 1 Attachments: CO -17-012 Public Hearing Notice Hansen H-12-Ll.pdf, CO -17-011 Public Hearing Notice Hansen H-12.pdf Re: Docket Number: CO -17-011 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing the drilling of the Hansen H-12 well. And Re: Docket Number: CO -17-012 The application of BlueCrest Energy (BlueCrest) for an exception to the spacing the drilling of the Hansen H12L1 well. Jody J. Colombie ..AOGCC Specia(Assistant .Alaska Oil and Gas Conservation Commission 333 West 7" .Avenue .Anchorage, .Alaska ,9,9501 Office: (907) 793-1221 Fax: (907) 276-7542 requirements of 20 AAC 25.055 for requirements of 20 AAC 25.055 for 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.gov. llueNest Energy RECEIVED APR 18 2017 AOG V C April 17, 2017 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception for H12 Onshore Horizontal Producer Dear Commissioners, Cosmopolitan Project BlueCrest Energy - H12 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 H12. H12 will lie within the same governmental quarter sections as, Hansen 1AL1, H16, H14 & H14 -L1 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. S' cerely, (� Randy Frazier Drilling Manager BlueCrest Energy - H12 Spacing Exception_AOGCC llueNest Energy Application for Spacing Exception Horizontal Producer H12 Table of Contents Cosmopolitan Project H12 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 H12 Application for Spacing Exception lluNest Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H12 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 some 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 same 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 some 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 H12 Application for Spacing Exception Zue)erst Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project 1112 Application for Spacing Fxception 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 5. Attachments Attachment 1 Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3 1 P a g e H12 Application for Spacing Exception nue est Energy pacing Exception Platt Cosmopolitan Project H12 Spacing Exception Attachments H12 Spacing Exception Attachments Starichkof St Unit 1 SFc . SE_ 21 "oS R' - 1000' Radius Around H12 H14 (P TM'4L11 ADL 83 44ADL 03, H12 (P u Co titan SE: 2;; I IS Intermedite Casing Hansen 1A a tan of St 1 ICP " Inter ite asin F.,c.. s.- JEC 34, T35 R15, SM JE.. �- _ . � _ SM t Surface Cordinates: Northing: 2,144,777.73 Easting: 168,845.19 GSC: 2329' FSL, 1524' FEL, Sec. 2, T4S, R15W SM SCP 5, US R1E��'�`1Top of Pro uctive Hortont+114v� _m AOL1879 Northing: 2,151,460.86 SEC 3, ,S ' SW,SM SEC z T41� Easting: 158,915.56 GSC: 3456' FSL, 1068' FEL, Sec. 33, T3S, R15W SM Depth: 15,036' MD/ 7,080' TVD Total Depth: H22 Northing: 2,156,040.00 Easting: 152,111.00 GSC: 2560' FSL, 2712' FEL, Sec. 29, T S, R15W SM Depth: 23,238' MD/ 7,080' TVD �L391904 " SFC e, T4s R15V. S;.� 0 1000 2000 3000 4000 5000ftUS 1:30000 PETREL llueNest Energy Affidavit Cosmopolitan Project H12 Spacing Exception Attachments H12 Spacing Exception Attachments llueNest Energy April 17, 2017 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H12 Well Dear Commissioners, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H12 well. Cosmopolitan Project BlueCrest Energy - H12 Affidavit BlueCrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 I, Andrew Buchanan, verify that the facts stated are true and the plat correctly portrays all pertinent and required data. Regards, i Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone (907) 754-9563 The foregoing instrument was acknowledged before me on the 1-79ay of T��%-Z 2017. By Andrew A. Buchanan. Notary Public in and for Alaska My Commission Expires: Bruni H. Warrick Notary public, State of Alaska Commission # 1 41 201 020 r My Comrnission Expires December 1, 2018 BlueCrest Energy - H12 Affidavit nue est Energy Notification Information Cosmopolitan Project H12 Spacing Exception Attachments H12 Spacing Exception Attachments nue est Energy Cosmopolitan Project F112 Spacing Exception Notification Information Alaska Department of Natural Resources — Units Section, Division of Oil and Gas Unit Manager 550 W 71' Ave, Suite 1100 Anchorage, Alaska 99501-3560 Sent: 04/17/2017 ru C3 C3 C3 0 an V.trrl IFIt:V MAIIN F Lbar+oFrc Md!' Carel iar dwwery rnomWl+mn. vp Alaska Department of Natural Resources Units Section, Division of Oil and Gas Unit Manager 550 W 7th Avenue, Suite 1100 Anchorage, AK 99501-3560. H12 Spacing Exception Notification Information llueNest Energy Bureau of Ocean Energy Management —Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503 Sent: 04/17/2017 Cosmopolitan Project H12 Spacing Fxception Notification Information Dorn"he A", C1n;Y W ✓9P�f iP WY'M�.uljJi w9YM rc Bureau of Ocean Energy Mgmt Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, AK 99503. H12 Spacing Exception Notification Information