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Home My WebLink AboutCO 740CONSERVATION ORDER 740 Docket Number: CO -18-003 Spacing Exception Hanson 12 1. March 6, 2018 B1ueCrest for Spacing Exception H-12 2. March 13, 2018 Notice of hearing, affidavit of publication, email distribution, mailings 3. April 23, 2018 Email STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 71" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill and complete the Hansen H-12 development oil well within the same governmental quarter section as wells and well branches that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-003 Conservation Order No. 740 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-12 Oil Development Well Kenai Peninsula Borough, Alaska April 27, 2018 By a letter received March 7, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill and complete the Hansen H-12 development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. Hansen H-12 will also lie within 1,000 feet of wells and well branches that are, or may be capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for April 26, 2018. On March 12, 2018, 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 March 13, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. 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 State of Alaska and provided 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 following the 30 -day public comment period. 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, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H-12 will be a horizontal, development oil well drilled directionally to the northwest from an onshore surface location at 2,329 feet from the south line (FSL) and 1,524 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 4,335 feet FSL and 2,174 feet FEL of Section 33, Township 3 South (T3S), Range 15 West (R15W), Conservation Order 740 April 27, 2018 Page 2 of 3 S.M. The bottom -hole location will lie offshore about 2,523 feet FSL and 2,355 feet FEL of Section 29, T3 S, RI 5W, S.M. 3. The surface location for the 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. 5. Hansen H-12 will be located within the same governmental sections as, and within 1,000 feet of, development oil wells Hansen H-14 and Hansen H-16 and well branch Hansen H -14L1 that are, or may be capable of, producing from the same oil pool. 6. 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 and well branches. 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 at a location that will maximize resource recovery. 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. I WAS0,1017DlSIJ39111YC.YI7.71711NIllil The AOGCC grants B1ueCrest's March 7, 2018, 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. B1ueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements DONE at Anchorage, Alaska and dated April 27, 2018. WVNI Hollis S. French Chair, Commissioner Daniel T. S amount, Jr Commissioner Commis: Conservation Order 740 April 27, 2018 Page 3 of 3 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 AGGCC 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 I0 -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, dre 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 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7'h Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill and complete the Hansen H-12 development oil well within the same governmental quarter section as wells and well branches that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-003 Conservation Order No. 740 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-12 Oil Development Well Kenai Peninsula Borough, Alaska April 27, 2018 By a letter received March 7, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill and complete the Hansen H-12 development oil well within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. Hansen H-12 will also lie within 1,000 feet of wells and well branches that 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 April 26, 2018. On March 12, 2018, 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 March 13, 2018, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. 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 State of Alaska and provided 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 following the 30 -day public comment period. 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, located within the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. Hansen H-12 will be a horizontal, development oil well drilled directionally to the northwest from an onshore surface location at 2,329 feet from the south line (FSL) and 1,524 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West, Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 4,335 feet FSL and 2,174 feet FEL of Section 33, Township 3 South (T3 S), Range 15 West (RI 5 W), Conservation Order 740 April 27, 2018 Page 2 of 3 S.M. The bottom -hole location will lie offshore about 2,523 feet FSL and 2,355 feet FEL of Section 29, T3S, R15W, S.M. 3. The surface location for the 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. 5. Hansen H-12 will be located within the same governmental sections as, and within 1,000 feet of, development oil wells Hansen H-14 and Hansen H-16 and well branch Hansen H -14L1 that are, or may be capable of, producing from the same oil pool. 6. 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 and well branches. 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 at a location that will maximize resource recovery. 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 IT IS ORDERED: The AOGCC grants BlueCrest's March 7, 2018, 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 April 27, 2018. //signature on file// //signature on file// //signature on file// Hollis S. French Daniel T. Seamount, Jr. Cathy P. Foerster Chair, Commissioner Commissioner Commissioner Conservation Order 740 April 27, 2018 Page 3 of 3 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. Ifthe 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. Ifthe AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior coup. 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 in 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 lost 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 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, April 30, 2018 9:42 AM To: Ballantine, Tab A (LAW); Bettis, Patricia K (DOA); Bixby, Brian D (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody 1 (DOA); Cook, Guy D (DOA); Davies, Stephen F (DOA); Earl, Adam G (DOA); Erickson, Tamara K (DOA); Foerster, Catherine P (DOA); French, Hollis (DOA); Frystacky, Michal (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Laubenstein, Lou (DOA); Loepp, Victoria T (DOA); McLeod, Austin (DOA); Mcphee, Megan S (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Rixse, Melvin G (DOA); Roby, David S (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Wallace, Chris D (DOA); AK, GWO Projects Well Integrity, AKDCWellIntegrityCoordinator; Alan Bailey; Alex Demarban; Alicia Showalter; Allen Huckabay; Andrew VanderJack, Ann Danielson; Anna Lewallen; Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Ben Boettger, Bill Bredar; Bob Shavelson; Bonnie Bailey; Brandon Viator, Brian Havelock, Bruce Webb; Caleb Conrad; Candi English; Cody Gauer; Cody Terrell; Colleen Miller, Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Danielle Mercurio; Darci Horner; Dave Harbour, David Boelens; David Duffy; David House; David McCaleb; David Pascal; ddonkel@cfl.rr.com; Diemer, Kenneth J (DNR); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones; Elizabeth Harball; Elowe, Kristin; Elwood Brehmer; Evan Osborne; Evans, John R (LDZX); Brown, Garrett A (DNR); George Pollock, Gordon Pospisil; Greeley, Destin M (DOR); Gretchen Stoddard; gspfoff; Hurst, Rona D (DNR); Hyun, James J (DNR); Jacki Rose; Jason Brune; Jdarlington Qarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jill Simek; Jim Shine; Jim Watt; Jim White; Young, Jim P (DNR); Joe Lastufka; Radio Kenai; Burdick John D (DNR); Easton, John R (DNR); Larsen, John M (DOR); Jon Goltz; Chmielowski, Josef (DNR); Joshua Stephen; Juanita Lovett; Judy Stanek; Kari Moriarty; Kasper Kowalewski; Kazeem Adegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Frank, Kevin J (DNR); Kruse, Rebecca D (DNR); Kyla Choquette; Gregersen, Laura S (DNR); Leslie Smith; Lori Nelson; Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Michael Bill; Michael Calkins; Michael Moora; Michael Quick; Michael Schoetz, Mike Morgan; MJ Loveland; mkm7200; Motteram, Luke A, Mueller, Marta R (DNR); Nathaniel Herz; knelson@petroleumnews.com; Nichole Saunders; Nick Ostrovsky; 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; Robert Tirpack; Robert Warthen; Ryan Gross; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly; Sharon Yarawsky; Skutca, Joseph E (DNR); Smith, Kyle S (DNR); Stephanie Klemmer; Stephen Hennigan; Stephen Ratcliff; Sternicki, Oliver R, Moothart, Steve R (DNR); Steve Quinn; Suzanne Gibson; sheffield@aoga.org; Tanisha Gleason; Ted Kramer; Teresa Imm; Tim Mayers; Todd Durkee; Tom Maloney, trmjrl; Tyler Senden; Umekwe, Maduabuchi P (DNR); Vern Johnson; 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; Casey Sullivan; Corey Munk; Don Shaw, Eppie Hogan; Eric Lidji; Garrett Haag; Smith, Graham O (DNR); Heusser, Heather A (DNR); Fair, Holly S (DNR); Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; 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); William Van Dyke Subject: RE: CO 740, 741, 742, 743, 744, 745 and 746 (Bluecrest) Attachments: co743.pdf; co740.pdf; co741.pdf; co742.pdf; co744.pdf, co745.pdf; co746.pdf Please see attached. From: Colombie, Jody 1 (DOA) Sent: Monday, April 30, 2018 9:41 AM To:'Ballantine, Tab A (LAW) (tab.baIla ntine@alaska.gov)' <tab.ballantine @alaska.gov>; 'Bettis, Patricia K (DOA) (patricia.bettis@alaska.gov)'<patricia.bettis@alaska.gov>;'Bixby, Brian D (DOA)' <brian.bixby@alaska.gov>; 'Brooks, Phoebe L (DOA) (phoebe.brooks@alaska.gov)' <phoebe.brooks@alaska.gov>; Carlisle, Samantha J (DOA) <samantha.carlisle@alaska.gov>; 'Colombie, JodyJ (DOA) Qody.colombie@alaska.gov)'<jody.colombie@alaska.gov>;'Cook, Guy D (DOA)' <guy.cook@alaska.gov>;'Davies, Stephen F (DOA) (steve.davies@alaska.gov)' <steve.davies@alaska.gov>; Earl, Adam G (DOA) <adam.earl@alaska.gov>; Erickson, Tamara K (DOA)<tamara.erickson@alaska.gov>;'Foerster, Catherine P (DOA) (cathy.foerster@alaska.gov)'<cathy.foerster@alaska.gov>;'French, Hollis (DOA)' <hollis.french@alaska.gov>; 'Frystacky, Michal (michal.frystacky@alaska.gov)'<michal.frystacky@alaska.gov>;'Guhl, Meredith (DOA sponsored) (meredith.guhl@alaska.gov)' <meredith.guhl@alaska.gov>; Herrera, Matthew F (DOA)<matthew.herrera@alaska.gov>;'Jones, Jeffery B (DOA) (jeff.jones@alaska.gov)' <jeff.jones@alaska.gov>; Kair, Michael N (DOA) <michael.kair@alaska.gov>; Laubenstein, Lou (DOA) <lou.laubenstein@alaska.gov>; Loepp, Victoria T (DOA) <victoria.loepp@alaska.gov>; McLeod, Austin (DOA) <austin.mcleod@alaska.gov>; McPhee, Megan S (DOA)<megan.mcphee@alaska.gov>;'Mumm, Joseph (DOA sponsored) (joseph.mumm@alaska.gov)'<joseph.mumm@alaska.gov>;'Noble, Robert C (DOA) (bob.noble@alaska.gov)' <bob.noble@alaska.gov>;'Paladijczuk, Tracie L (DOA) (tracie.paladijczuk@alaska.gov)'<tracie.paladijczuk@alaska.gov>; 'Pasqual, Maria (DOA) (maria.pasqual@alaska.gov)' <maria.pasqual@alaska.gov>; 'Regg, James B (DOA) (jim.regg@alaska.gov)' <jim.regg@alaska.gov>; Rixse, Melvin G (DOA) <melvin.rixse@alaska.gov>; 'Roby, David S (DOA) (dave.roby@alaska.gov)' <dave.roby@alaska.gov>;'Schwartz, Guy L (DOA) (guy.schwartz@alaska.gov)' <guy.schwartz@alaska.gov>;'Seamount, Dan T (DOA) (dan.seamount@alaska.gov)'<dan.seamount@alaska.gov>;'Wallace, Chris D (DOA) (chris.wallace@alaska.gov)' <chris.wallace@alaska.gov>; AK, GWO Projects Well Integrity<AKDCProjectsWelllntegrityEngineer@bp.com>; 'AKDCWellintegrityCoordinator'<AKDCWelllntegrityCoordinator@bp.com>;'Alan Bailey' <abailey@petroleumnews.com>;'Alex Demarban' <alex@alaskadispatch.com>; Alicia Showalter <ashowalter@hilcorp.com>;'Allen Huckabay' <allenhuckabay@hotmail.com>;'Andrew VanderJack' <AMV@vnf.com>;'Ann Danielson' <Ann.Danielson@bp.com>; Anna Lewallen <alewallen@glacieroil.com>; Anna Raff <anna.raff@dowjones.com>; 'Barbara F Fullmer' <barbara.f.fullmer@conocophillips.com>; bbritch <bbritch@alaska.net>; Becky Bohrer <bbohrer@ap.org>; 'Ben Boettger' <benjamin.boettger@peninsulaclarion.com>; 'Bill Bredar' <william.bredar@bp.com>; Bob <bob@inletkeeper.org>;'Bonnie Bailey' <kyriasmedic@yahoo.com>; Brandon Viator <Brandon.S.Viator@conocophillips.com>; 'Brian Havelock' <behavelock@gmail.com>;'Bruce Webb' <b.webb@furiealaska.com>;'Caleb Conrad'<cale b.con rad @bakerhughes.com>; 'Ca nd i English' <c.english@nsakllc.com>; Cody Gauer <cody.gauer@enipetroleum.com>; Cody Terrell <cterrell@hilcorp.com>; Colleen Miller <cmiller@ciri.com>;'Connie Downing' <cdowning@tyonek.com>; Crandall, Krissell <Krissell.Crandall@bp.com>;'D Lawrence' <DLawrence4@slb.com>; 'Dale Hoffman' <da le.hoffma n@caelusenergy.com>; 'Danielle Mercurio' <dbm@vnf.com>; 'Darci Horner' <dhorner@hilcorp.com>; 'Dave Harbour' <harbour@gci.net>; David Boelens <dboelens@aurorapower.com>; 'David Duffy' <dduffy@hilcorp.com>; David House <d house@ usgs.gov>; 'David McCaleb' <david.mccaleb@ihs.com>;'David Pascal'<dPascal @glacieroil.com>;'ddonkel@cfl.rr.com' <ddonkel@cfl.rr.com>; Diemer, Kenneth J (DNR) <ken.diemer@alaska.gov>; 'DN ROG Units' <dog.units@alaska.gov>; 'Donna Ambruz' <dambruz@hilcorp.com>; 'Ed Jones' <jejones@aurorapower.com>; 'Elizabeth Harball' <eharball@alaskapublic.org>; Elowe, Kristin <Kristin.Elowe@mms.gov>; 'Elwood Brehmer' <elwood.brehmer@alaskajournal.com>;'Evan Osborne' <Osborne. Eva n@epa.gov>; Evans, John R (LDZX) <John.R.Eva ns@conocophillips.com>; Garrett Brown <ga rrett. brown @alaska.gov>; 'George Pollock' <gpollock@aurorapower.com>; Gordon Pospisil <PospisG@BP.com>; Greeley, Destin M (DOR) <destin.greeley@alaska.gov>; 'Gretchen Stoddard' <mgstoddard@gci.net>; gspfoff <gspfoff@aurorapower.com>; Hurst, Rona D (DNR) <rona.hurst@alaska.gov>; Hyun, James J (DNR) <james.hyun@alaska.gov>;'Jacki Rose' <jrose@bluecrestenergy.com>; Jason Brune <1Brune@ciri.com>; Jdarlington (jarlington@gmail.com) <jarlington@gmail.com>;'Jeanne McPherren' <jmcpherren@brenalaw.com>; 'Jerry Hodgden' <geodogs@comcast.net>; Jill Simek <Jill.Simek@conocophillips.com>; Jim Shine <jshine@hilcorp.com>;'Jim Watt' <jwatt@strongenergyresources.com>; Jim White <jimwhite@satx.rr.com>; Jim Young <jim.young@alaska.gov>; 'Joe Lastufka' <lastufjn@bp.com>; Joe Nicks <news@ rad iokenai.com>; 'John Burdick' <john.burdick@alaska.gov>;'John Easton' <john.easton@alaska.gov>; John Larsen <john.larsen@alaska.gov>; Jon Goltz <Jon.Goltz@conocophillips.com>; Josef Chmielowski <josef.chmielowski@alaska.gov>; Joshua Stephen <AKGWOWeliSiteEnginee@bp.com>;'Juanita Lovett'<jlovett@ hilcorp.com>; 'Judy Stanek'<jstanek@hilcorp.com>; Kari Moriarty <moriarty@aoga.org>;'Kasper Kowalewski'<kasper.kowalewski@cop.com>;'Kazeem Adegbola' <kazeem.a.adegbola@conocophillips.com>;'Keith Torrance' <keith.torrance@uicumiaq.com>; Keith Wiles <kwiles@marathonoil.com>; Kelly Sperback <ksperbeck@slb.com>; Kevin Frank <kevin.frank@alaska.gov>; Kruse, Rebecca D (DNR) <rebecca.kruse@alaska.gov>; Kyla Choquette <Kyla.Choquette@bp.com>; Laura Silliphant (laura.gregersen@alaska.gov) <laura.gregersen@alaska.gov>; Leslie Smith <l.smith@furiealaska.com>; Lori Nelson <Inelson@hilcorp.com>; 'Luke Keller' <Ike I ler@ hilcorp.com>; 'Marc Kovak' <yesnoak@gmail.com>; Mark Dalton <mark.dalton@hdrinc.com>; Mark Hanley (mark.hanley@anadarko.com)<mark.hanley@anadarko.com>;'Mark Landt' <landtman4@yahoo.com>;'Mark Wedman' <mark.wedman@pxd.com>;'Michael Bill' <bilImk@acsalaska.net>; Michael Calkins<mcalkins117@yahoo.com>;'Michael Moora' <mmoora@anvilcorp.com>; Michael Quick <mquick@hilcorp.com>; Michael Schoetz <mschoetz@hilcorp.com>; Mike Morgan <mike.morgan@caelusenergy.com>; MJ Loveland <N1878@conocophillips.com>; mkm7200 <mkm7200@aol.com>; 'Motteram, Luke A' <luke.a.motteram@exxonmobil.com>; Mueller, Marta R (DNR)<marta.mueller@alaska.gov>;'Nathaniel Herz' <nherz@alaskadispatch.com>; nelson <knelson@petroleumnews.com>; Nichole Saunders <nsaunders@edf.org>;'Nick Ostrovsky' <nostrovsky@ahtna.net>; NSK Problem Well Supv <n1617@conocophillips.com>; Patty Alfaro <palfaro@yahoo.com>;'Paul Craig' <drpaulcraig@gmail.com>; Paul Decker (paul.decker@alaska.gov) <paul.decker@alaska.gov>;'Paul Mazzolini' <pmazzolini@hilcorp.com>; Pike, Kevin W (DNR) <kevin.pike @alaska.gov>; Randall Kanady <Randall.B.Kanady@conocophillips.com>; 'Renan Yanish' <renan@astercanyon.com>;'Richard Cool' <cool.richard@epa.gov>;'Robert Breisford' <robert.brelsford@argusmedia.com>; RobertTirpack <Robert.tirpack@caelusenergy.com>; Robert Warthen <rwarthen@nordaqenergy.com>; 'Ryan Gross' <Gross.Ryan @epa.gov>; Sara Leverette <saleverette@stoel.com>; 'Scott Griffith' <scott_griffith@xtoenergy.com>; Shahla Farzan <shahla@kbbi.org>; Shannon Donnelly <shannon.donnelly@conocophillips.com>;'Sharon Yarawsky' <syarawsk@blm.gov>; Skutca, Joseph E (DNR) <joseph.skutca@alaska.gov>; Smith, Kyle S (DNR) <kyle.smith@alaska.gov>;'Stephanie Klemmer' <sklemmer@hilcorp.com>; 'Stephen Hennigan' <shennigan@peiinc.com>;'Stephen Ratcliff' <sratcliff@glacieroil.com>; Sternicki, Oliver R <Oliver.Sternicki@bp.com>; Steve Moothart (steve.moothart@alaska.gov)<steve.moothart@alaska.gov>;'Steve Quinn' <smgwrite@gmail.com>;'Suzanne Gibson' <sgibson@ciri.com>; Tamera Sheffield <sheffield@aoga.org>;'Tanisha Gleason' <tgleason@ciri.com>;'Ted Kramer' <tkramer@hilcorp.com>; Teresa Imm <timm@asrc.com>;'Tim Mayers' <mayers.timothy@epa.gov>; Todd Durkee <todd.durkee@anadarko.com>;'Tom Maloney' <tmaloney@ahtna.net>; trmjrl <trmjrl@aol.com>; 'Tyler Senden'<r.tyler.senden@conocophillips.com>; Umekwe, Maduabuchi P (DNR) <pascal.umekwe@alaska.gov>; Vern Johnson <Vern.johnson@caelusenergy.com>; Vinnie Catalano <catalano@circac.org>; Well Integrity <n2550@conocophillips.com>; Well Integrity <n2549@conocophillips.com>; Weston Nash <Weston.Nash@bp.com>; Whitney Pettus <Whitney.Pettus@bp.com>;'Aaron Gluzman' <aaron.gluzman@gmail.com>; 'Aaron Sorrell' <Aaron.Sorrell@BP.com>; Ajibola Adeyeye <Ajibola_Adeyeye@xtoenergy.com>; Alan Dennis <Alan.Den nis@bp.com>; Andy Bond <Andy.Bond @caelusenergy.com>; Bajsarowicz, Caroline J <Caroline.Bajsarowicz@bp.com>; 'Bruce Williams' <bruce.williams@bp.com>; Casey Sullivan <Casey.Sullivan@pxd.com>; Corey Munk <Corey.Munk@BP.com>; 'Don Shaw' <shawmanseafoods@yahoo.com>; Eppie Hogan <eppie.hogan@bp.com>; Eric Lidji <ericlidji@mac.com>; Garrett Haag <Garrett.B.Haag@conocophillips.com>; 'Graham Smith' <graham.smith@alaska.gov>; Heusser, Heather A (DNR) <heather.heusser@alaska.gov>; Holly Fair <holly.fair@alaska.gov>; Jamie M. Long <jamie.m.long@esso.ca>; 'Jason Bergerson' <Jason. Be rgerson@ north-slope.org>; Jesse Chielowski <jchmielowski@blm.gov>;'Jim Magill' <jim_magill@platts.com>; Joe Longo <Joe.Longo@hxrdrillingservices.com>; John Martineck <john@bluecrestenergy.com>; Josh Kindred <kindred@aoga.org>; Keith Lopez <Keith.Lopez@caelusenergy.com>; Laney Vazquez <LVazquez@chevron.com>; Lois Epstein <lois_epstein@tws.org>; Longan, Sara W (DNR) <sara.longan@alaska.gov>; Marc Kuck <Marc.kuck@enipetroleum.com>; Marcia Hobson <mhobson@eenews.net>; 'Marie Steele' <marie.steele@alaska.gov>; Matt Armstrong <Matt.Armstrong@bakerhughes.com>; Melonnie Amundson <Melonnie.Amundson@caelusenergy.com>;'Mike Franger' <mike.franger@alaska.gov>; Morgan, Kirk (DNR) <kirk.morgan@alaska.gov>; Pascal Umekwe <pascal.umekwe@alaska.gov>; Pat Galvin <pat@greatbearpetro.com>;'Pete Dickinson' <pdickinson@al lame ricanoilfield.com>; Peter Contreras <contreras.peter@epa.gov>; Rachel Davis <Rachel.Davis@caelusenergy.com>; Richard Garrard <rgarrard@nordaqenergy.com>; Richmond, Diane M <Diane.Richmond@bp.com>; Robert Province <robert.province@enipetroleum.com>; 'Ryan Daniel' <Ryan.Daniel@bp.com>; 'Sandra Lemke' <Sandra.D.Lemke@conocophillips.com>; 'Susan Pollard' <Susan.Pollard@alaska.gov>; Talib Syed <talibs@ecentral.com>; Tina Grovier (tmgrovier@stoel.com) <tmgrovier@stoel.com>;'William Van Dyke' <bva ndyke@ petroak.com> Subject: CO 740, 741, 742, 743, 744, 745 and 746 (Bluecrest) Jody J. Cotombie AOGCC SpeciaC.lssistant Alaska OdandGas Conservation Commission 333 West -' Avenue Anchorage, A6;iska 99501 Office: (907) 793-1221 Fax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iodv.colombie@alasko.9ov. Bernie Karl K&K Recycling Inc. Gordon Severson Penny Vadla P.O. Box 58055 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 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 Fairbanks, AK 99706 3 Davies, Stephen F (DOA) From: Andrew Buchanan <abuchanan@bluecrestenergy.com> Sent: Monday, April 23, 2018 2:30 PM To: Davies, Stephen F (DOA) Cc: 'Tom McKay' Subject: RE: Spacing Exception Applications for Hansen H-12 and Laterals Good afternoon Steve, I am sorry I did not include the justification again with the package. The reasoning for the exemption is the very similar to previous well. Reservoir modeling indicates that the optimum spacing for the laterals is 800'. Because of that spacing, the laterals are in conflict with each other as well as neighboring wells. Also, due to the 3030 azimuth we are drilling for hole stability, there are multiple instances where two or more of the laterals will be within the same section. Fot these reasons, in lieu of pool rules that would allow for this unique and field specific spacing, BlueCrest Energy is requesting a spacing exception. Please let me know if you have any further questions or concerns. Regards, Andrew Buchanan Sr. Operations Geologist BlueCrest Energy Ph: 907-754-9563 Cell: 907-250-6545 From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, April 23, 2018 1:13 PM To: Andrew Buchanan (abuchanan@bluecrestenergy.com) Subject: FW: Spacing Exception Applications for Hansen H-12 and Laterals Andrew, I'm working on draft text for the spacing exception decisions for Hansen H-12 and laterals. The only item lacking in BlueCrest's applications for these exceptions is an explanation as to why BlueCrest selected the currently planned bottom -hole locations for the well and its branches rather than drill them to locations that conform to statewide spacing regulations. Is your statement for H-16 and H-161-1-ST1, below, also accurate for H-12 and its branches? Thanks, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.eov. i Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-003 Docket Number: CO -18-004 Docket Number: CO -18-005 Docket Number: CO -18-006 Docket Number: CO -18-007 Docket Number: CO -18-008 Docket Number: CO -18-009 The applications of B1ueCrest Energy (B1ueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H12 (Revision 1), Hansen H12 -L1, Hansen H12 - L2, Hansen H12 -L3, Hansen H12 -L4, Hansen H12 -L5 and Hansen H12 -L6 well. B1ueCrest, by letter dated March 6, 2018, 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 wells will be drilled within the same governmental quarter sections as wells Hansen IAL1, Hansen H-16 and Hanson H-14. The AOGCC has tentatively scheduled a public hearing on this application for April 26, 2018, 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 April 2, 2018. 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 April 20, 2018. 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 April 20, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the April 26, 2018 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 April 21, 2018. Cathy . Foerster Commissioner Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-003 Docket Number: CO -18-004 Docket Number: CO -18-005 Docket Number: CO -18-006 Docket Number: CO -18-007 Docket Number: CO -18-008 Docket Number: CO -18-009 The applications of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H12 (Revision 1), Hansen H12 -L1, Hansen H12 - L2, Hansen H12 -L3, Hansen H12 -L4, Hansen H12 -L5 and Hansen H12 -L6 well. BlueCrest, by letter dated March 6, 2018, 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 wells will be drilled within the same governmental quarter sections as wells Hansen IALI, Hansen H-16 and Hanson H-14. The AOGCC has tentatively scheduled a public hearing.on this application for April 26, 2018, at 10:00 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 April 2, 2018. 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 April 20, 2018. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7u Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on April 20, 2017, except that, if a hearing is held, comments must be received no later than the conclusion of the April 26, 2018 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 April 21, 2018. //signature on file// Cathy P. Foerster Commissioner Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, March 12, 2018 12:19 PM To: DOA AOGCC Prudhoe Bay; Bender, Makana K (DOA sponsored); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha 1 (DOA); Colombie, Jody J (DOA); Davies, Stephen F (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); McPhee, Megan S (DOA); Rixse, Melvin G (DOA); Mumm, Joseph (DOA sponsored); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Ballantine, Tab A (LAW); Erickson, Tamara K (DOA); Wallace, Chris D (DOA); AK, GWO Projects Well Integrity; AKDCWeIIIntegrityCoordinator; Alan Bailey, Alex Demarban; Alicia Showalter, Allen Huckabay; Andrew Vandedack; Ann Danielson; Anna Lewallen; Anna Raff; Barbara F Fullmer, bbritch; bbohrer@ap.org; Ben Boettger; Bill Bredar; Bob Shavelson; Bonnie Bailey, Brandon Viator; Brian Havelock, Bruce Webb; Caleb Conrad; Candi English; Cody Gauer, Cody Terrell; Colleen Miller, Connie Downing; Crandall, Krissell; D Lawrence; Dale Hoffman; Danielle Mercurio; Darci Horner, Dave Harbour, David Boelens; David Duffy, David House; David McCaleb; ddonkel@ctl.rr.com; Diemer, Kenneth J (DNR); DNROG Units (DNR sponsored); Donna Ambruz; Ed Jones, Elizabeth Harball; Elowe, Kristin; Elwood Brehmer, Evan Osborne; Evans, John R (LDZX); Brown, Garrett A (DNR); George Pollock; Gordon Pospisil; Greeley, Destin M (DOR); Gretchen Stoddard; gspfoff; Hurst, Rona D (DNR); Hyun, James 1 (DNR); Jacki Rose; Jason Brune; Jdarlington (arlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jill Simek; Jim Shine; Jim Watt; Jim White; Young, Jim P (DNR); Joe Lastufka; Radio Kenai; Burdick John D (DNR); Easton, John R (DNR); Larsen, John M (DOR); Jon Goltz; Chmielowski, Josef (DNR); Joshua Stephen; Juanita Lovett; Judy Stanek; Kari Moriarty; Kasper Kowalewski; Kazeem Adegbola; Keith Torrance; Keith Wiles; Kelly Sperback; Frank, Kevin J (DNR); Kruse, Rebecca D (DNR); Kyla Choquette; Gregersen, Laura S (DNR); Leslie Smith; Lori Nelson; Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Michael Bill; Michael Calkins, Michael Moora; Michael Quick; Michael Schoetz; Mike Morgan; M1 Loveland; Motteram, Luke A; Mueller, Marta R (DNR); Nathaniel Herz; knelson@petroleumnews.com; Nichole Saunders; Nick Ostrovsky, 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; Robert Warthen; Ryan Gross; Sara Leverette; Scott Griffith; Shahla Farzan; Shannon Donnelly, Sharon Yarawsky; Skutca, Joseph E (DNR); Smith, Kyle S (DNR); Stephanie Klemmer; Stephen Hannigan; Sternicki, Oliver R, Moothart, Steve R (DNR); Steve Quinn; Suzanne Gibson; sheffield@aoga.org; Tanisha Gleason; Ted Kramer; Teresa Imm; Tim Jones; Tim Mayers; Todd Durkee; Tom Maloney, 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; Casey Sullivan; Corey Munk, D. McCraine; Don Shaw, Eppie Hogan; Eric Lidji; Garrett Haag; Smith, Graham O (DNR); Heusser, Heather A (DNR); Fair, Holly S (DNR); Jamie M. Long; Jason Bergerson; Jesse Chielowski; Jim Magill; 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); William Van Dyke Subject: Public Notice Bluecrest Attachments: CO -18-003 thru CO -18-009 Public Hearing Notice Hansen.pdf Please see attached. Re: Docket Number: CO -18-003 Docket Number: CO -18-004 Docket Number: CO -18-005 Docket Number: CO -18-006 Docket Number: CO -18-007 Docket Number: CO -18-008 Docket Number: CO -18-009 The applications of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H12 (Revision 1), Hansen H12-1-1, Hansen H12-1-2, Hansen H12-1-3, Hansen H12-1-4, Hansen H12 -L5 and Hansen H12 -L6 well. Jody J. Co(om6ie _10(jCC Sgecia(Assistant .A(aska Oi(andGas Conservation Commission 333 bVest T' Avenue Anchorage, A(aska 995o1 office: (907) 793-1221 Fax: (907) 276-7542 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC(, State of Alaska and is for the sole use of the intended recipient(s). If 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 aov. 2 Bernie Karl Gordon Severson Penny Vadla K&K 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 STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIr INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFnDAVIT OF PUBLICATION WITH ATTACHED COPY OFADVERTISMENT. ADVERTISING ORDER NUMBER AO -18-014 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O.AGENCY 3/12/2018 PHONE: (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: Anchorage Daily News SPECIAL INSTRUCTIONS: 300 W. 31 at Ave. Anchorage, Alaska 99503 TYPE OF. ADVERTISEMENT: "' LEGAL � DISPLAY CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO -18-003 - CO -18-009 Initials of who re ared AO: Alaska Non -Taxable 92-600185 sneMIin.vuira.4.(6.virlc�aiiveit[B>No:� ———"'— -. :ORDERNO.; CERTIFIEDAFFIDAi7P Ill+.::' :eUiti"iiDxwiM:niTACMMCOPY.OF: :.:.i..1... .. Department of Admirdstration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae ] of 1 Total of All Ya es $ - REF Tese I Number Anteater Date Com menta I PVN ADN89311 z Ao AO -18-014 3 4 FIN AMOUNT SY Act Template PGM LGR Object FY I DIST LIQ I 18 A14100 3046 18 z 3 4 Pu a ng o a IV Title: Purchasing Authority's Signature Telephone Number 1 O.n receiving agency name must appear on all invoices and documents relating to this purchase. Is state is registered for lax free transactions under Chapter 32, IRS code. Registration number 9273-0006 K. Items am for the exclusive use of the stale and not for s TRHJU:TI4N i)ivision Fisnal/OrlginalAO. ',:Copies Pybllsher tfued) Division'.Mkil Receiving Form: 02-901 Revised: 3/12/2018 270227 0001417944 $229.10 STATE OF ALASKA EIVE MAR 15 2013 AFFIDAVIT OF PUBLICATION AOGCC THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he/she is a representative of the Anchorage Daily 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 March 13, 2018 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 13th day of March, 2018 Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION XPI S Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-003 Docket Number: CO -18-004 Docket Number: CO -18-005 Docket Number: CO -18-006 Docket Number: CO.18-007 Docket Number: CO -18-008 Docket Number: CO -18-009 The applications of BlueCrest Enemy (BlueCresti for an exception to the spacingg requirements of 20 AAC 23.055 for the drilling of the Hansen H12 (Revision 1), Hansen H12 -L1, Hansen H12 -L2, Hansen H12 -L3, Hansen H12 -L4, Hansen H12 -L5 and Hansen 1-112-1-6 well. BlueCrest, by letter dated March 6, 2018, 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 wells will be drilled within the samegovernmental quarter sections as wells Hansen 1AL1, Hansen H-16 and Hanson H-14. The AOGCC has tentatively scheduled a public hearing on this application for April 26, 2018, at 10:00 a.m. at 333 West 7th Avenue AnchoraSga, Alaska 99501. To reqquest that. the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on April 2, 2018, If a request for i the issuance of hold the hearing, If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombia, at (907) 793-1221, no later than April 21, 2018. - Published: March 13, 2018 Hsiggnnature on file// Cathy P. Foerstef Commissioner Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 1 iue s( Eni4gy March 6, 2018 Alaska Oil and Gas Conservation Commission 333 West 7`" Avenue, Suite 100 Anchorage, Alaska 99501 Cosmopolitan Project BlueCrest Energy - H12 (Revision 1) Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: (burgess@bluecrestenergy.com RECEIVED MAR 0 7 2018 RE: Application for Spacing Exception for H12 (Revision 1) Onshore Horizontal Producer AOGCC Dear Commissioners, BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H12 (Revision 1). H12 will lie within the same governmental quarter sections as, Hansen SALT, H16 and H14 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 Tom McKay at 907-754-9566. Sincerely, Larry Burges/so---V/4 rNi Alaska Manager BlueCrest Energy - H12 (Revision 1) Spacing Exception_AOGCC nue st Enc(rgy Application for Spacing Exception Horizontal Producer H12 (Revision 1) Table of Contents Cosmopolitan Project H12 (Revision 1) Application for Spacing Exception 20 AAC 25.055. Drilling units and well spacing...........................................................2 1. Requirements of 20 AAC 25.055 (a)........... 2. Requirements of 20 AAC 25.055 (b).. ........................................ 2 ............................................................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 Informo tion........................................................................................................ 3 I I Page H12 (Revision 1) Application for Spacing Exception lue st Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H12 (Revision 1) 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 o 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) fora 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 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 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. 21 Page H12 (Revision 1) Application for Spacing Exception ltleNest Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H12 (Revision 1) Application for Spacing Exception The commission will review an application for on exception to the provisions of this section in accordance with 20AAC 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) Please see Attachment 3: Notification Information (2) a plot 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 I Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3 1 P a g a H12 (Revision 1) Application for Spacing Exception lue st Enefrgy March 6, 2018 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7`h Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H12 Well (Revision 1) Dear Commissioners, Cosmopolitan Project BlueCrest Energy - H12 (Revision 1) Affidavit BlueCrest Alaska Operating LLC 3301 C Street, Suite 202 Anchorage, AK 99503 BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed 11412(Revisionl) well. I, Andrew Buchanan, verify that the 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 the � day of / 7�r� 2018. By Andrew A. Buchanan. Notary Public in and for Alaska My Commission Expires:.6 D�• 21�� Elrunf H. Warrick Notary Public, State of Alaska Commission # 141201020 My Commission Expires December 1, 2018 BlueCrest Energy - H12 (Revision 1) Affidavit H14 PB1 TD T3S, WW. H12 Ham" 14 ion 1) With 1000' R iApl3d44Q31 r Hee6en /A a ree H14 Northing: 2,144,777.67 ftUS Easting: 168,845.49 ftUS GSC: 2,329' FSL, 1,524' FEL, Sec. 2, T4S, R15W SM H12 -L6 Top of Production: Northing: 2,152,370.96 ftUS Easting: 157,833.37 ftUS GSC: 4,335' FSL, 2,174' FEL, Sec. 33, T3S, R15W SM Depth: 16,335.0' MD / 6,998.6' TVD H12 -L6 Total Depth: Northing: 2,155,992.94 ftUS Easting: 152,467.05 ftUS GSC: 2,523' FSL, 2,355' FEL, Sec. 29, T3S, R15W SM Depth: 22,852.4' MD / 6,840.6' TVD 0 s around H12 P 18790 H12 -L1 Multilateral 0 1000 2000 3000 4000 5000ftUS 1:25000 Scale Date 1:25000 03/01/2018 Prepared by Field ABuchanan I Cosmopolitan Postal ru nl •. •.T .A Domestic Mail Only _ .. 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