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Home My WebLink AboutCO 742CONSERVATION ORDER 742 Docket Number: CO -18-005 Spacing Exception Hanson 12-L02 1. March 6, 2018 BlueCrest for Spacing Exception 11-12-L02 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 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest ) Docket Number: CO -18-005 Alaska Operating LLC to drill and complete ) Conservation Order No. 742 the Hansen H -12-L02 development oil well ) Cosmopolitan Unit branch within the same governmental ) Hansen Undefined Oil Pool quarter section as wells and well branches ) Hansen H-12-1,02 that are, or may be capable of, producing ) Oil Development Well Branch from the same pool. ) Kenai Peninsula Borough, Alaska April 27, 2018 IT APPEARING THAT: 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-L02 development oil well branch within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. Hansen H -12- L02 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. 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-12-1,02 development well branch, 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. 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-12-1,02 will be a horizontal, development oil well branch 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 5,132 feet FSL and 3,427 feet FEL of Section 33, Township 3 South (T3S), Conservation Order 741 April 27, 2018 Page 2 of 3 Range 15 West (R15W), S.M. The bottom -hole location will lie offshore about 618 feet FSL and 4,635 feet FEL of Section 28, T3S, RI 5W, S.M. The surface location for the Hansen H-12-1,02 lies on private property. The top -of -productive interval and bottom -hole locations will lie within State of Alaska leases ADL 018790 and ADL 384403, respectively. 4. Hansen H -12-L02 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-12-1,02 will be located within the same governmental sections as, and within 1,000 feet of, development oil wells Hansen H-12, Hansen H-14 and Hansen H-16 and well branches Hansen H-12-1,01, Hansen H -12-L03, and 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-L02 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-12-1,02 development oil well branch 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-12-1,02 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE IT IS ORDERED: 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-L02 development oil well branch 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. Hollis French Daniel T. Seamount, Jr. Cathy7. Fo Chair, Commissioner Commissioner Commissior Conservation Order 741 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 fueher 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 tune 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 ran 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 71" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest ) Docket Number: CO -18-005 Alaska Operating LLC to drill and complete ) Conservation Order No. 742 the Hansen H-12-1,02 development oil well ) Cosmopolitan Unit branch within the same governmental ) Hansen Undefined Oil Pool quarter section as wells and well branches ) Hansen H-12-1,02 that are, or may be capable of, producing ) Oil Development Well Branch from the same pool. ) Kenai Peninsula Borough, Alaska IT APPEARING THAT: 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-12-1,02 development oil well branch within the same governmental quarter section as wells that are, or may be capable of, producing from the same pool. Hansen H -12- L02 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-12-1,02 development well branch, 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-12-1,02 will be a horizontal, development oil well branch 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 5,132 feet FSL and 3,427 feet FEL of Section 33, Township 3 South (T3S), Conservation Order 741 April 27, 2018 Page 2 of 3 Range 15 West (R15W), S.M. The bottom -hole location will lie offshore about 618 feet FSL and 4,635 feet FEL of Section 28, T3S, R15 W, S.M. 3. The surface location for the Hansen H -12-L02 lies on private property. The top -of -productive interval and bottom -hole locations will lie within State of Alaska leases ADL 018790 and ADL 384403, respectively. 4. Hansen H-12-1,02 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -12-L02 will be located within the same governmental sections as, and within 1,000 feet of, development oil wells Hansen H-12, Hansen H-14 and Hansen H-16 and well branches Hansen H-12-1,01, Hansen H -12-L03, and 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-L02 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-12-1,02 development oil well branch 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-L02 well branch will not result in waste or jeopardize correlative rights of adjoining or nearby owners. NOW THEREFORE 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-12-1,02 development oil well branch within the Hansen Undefined Oil Pool. BlueCrest may proceed as long as it complies with all applicable laws, and all other legal requirements DONE at Anchorage, Alaska and dated April 27, 2018. //signature on file// //signature on file// Hollis French Daniel T. Seamount, Jr Chair, Commissioner Commissioner �OIL,N.D //signature on file// Cathy P. Foerster Commissioner Conservation Order 741 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 die AOGCC grants for good cause shown, a person alTected 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. Ifthe AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior wort. The appeal MUS"r 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 m superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days ifthe AOGCC otherwise distributes, the order or decision on reconsideration. period of time above, the date of the event or default after which the designated period begin to run is nor included in the period; the last day of the A. 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 J (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, AKDCWeIIIntegrityCoordinator; 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 1 (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 Oarlington@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 5 (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 0 (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 J (DOA) Sent: Monday, April 30, 2018 9:41 AM To: 'Ballantine, Tab A (LAW) (tab.ballantine@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) (jody.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) (jeffjones@alaska.gov)' <jeffjones@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<AKDCProjectsWe111ntegrityEngineer@bp.com>; 'AKDCWeIIlntegrityCoordinator' <AKDCWellintegrityCoordinator@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' <caleb.conrad@bakerhughes.com>; 'Candi 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' <dale.hoffman@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 <dhouse@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) <ke n.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.Evans@conocophillips.com>; Garrett Brown <garrett.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 <JBrune@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>;1im Young <jim.young@alaska.gov>;'Joe Lastufka' <lastufjn@bp.com>; Joe Nicks <news@ radiokenai.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 <I.smith@furiealaska.com>; Lori Nelson <Inelson@hilcorp.com>; 'Luke Keller' <Ikeller@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' <billmk@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>; M1 Loveland <N1878@conocophillips.com>; mkm7200 <mkm7200@aol.com>; 'Motteram, Luke A' <Juke.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 Brelsford' <robe rt. brelsford @a rgusmedia.com>; RobertTirpack <Robert.tirpack@caelusenergy.com>; Robert Warthen <rwarthen@nordagenergy.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>;'5tephanie 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.Dennis@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 (DNR) <heather.heusser@alaska.gov>; Holly Fair <holly.fair@alaska.gov>; Jamie M. Long <jamie. m.long@esso.ca>; 'Jason Bergerson' <Jason.Bergerson@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 A (DNR) <kirk.morgan@alaska.gov>; Pascal Umekwe <pascal.umekwe@alaska.gov>; Pat Galvin <pat@greatbearpetro.com>;'Pete Dickinson' <pdickinson@allamericanoilfield.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 .1. Co(omhie AOGCC Syecia(Assistant Alaska Oi(andCGas Conservation Commission 333 West 7" Avenue Anchorage, Alaska 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@alaska.gov. Bernie Karl Gordon Severson Penny Vadla K&K Recycling Inc. 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 303° 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 -STI, 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.zov. K 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 -Ll, 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 TALI, 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 7h! 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 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 -Ll, Hansen H12 - L2, Hansen H12 -L3, Hansen H12 -L4, Hansen H12-1,5 and Hansen H12-1,6 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 TALI, 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 1 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 7`h 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. Hsignature on fileH 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 J (DOA); Colombie, Jody 1 (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; AKDCWellIntegrityCoordinator; 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@cfl.rr.com; Diemer, Kenneth 1 (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 Oarlington@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; 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 Hennigan; 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); Neusser, 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 1-112-1-1, Hansen H12-1-2, Hansen 1112-1-3, Hansen H12-1-4, Hansen H12-1_5 and Hansen H12 -L6 well. Jody. Cotonibie AOyCc Specia( Assistant A(asko Oi(and(jas Conservation commission 333 Wesl7`' Ai'O1ue Anchm-age, .Alaska 99501 Office: (o07) 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 if, 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. E STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWWG ADVERTISING ORDER NO., CERTIFUM AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUamER AO-I8-014 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 st Ave. Anchorage, Alaska 99503 TYPE OFADVERTISEI4ENT:. LEGAL DISPLAY CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO-18-003 - CO-18-009 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMI7 Pt afezSKID w......E&ilSliao: ORDERNO., CERT1.WINFFWERCIPINO. :........TION....................... :<euacmATloNW.ITat:ArrAel®corxoF: <xovERns>t�IVT�q Department of Administration Division Of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Page I of I Total of All Pa es $ REF Tyr,, I Number Amount Date Comments I PVN JADN89311 2 AO AO-18-014 3 4 FIN AMOUNT Sy Aet Template PGM LGR Object FY DIST LIQ I 18 A14100 3046 18 2 3 4 5 Pur a ng u he a TIM: Puretresing Authority's Signature Telephone Number 1/40,'k-al receimng agency name must appear on all invoices and documents relating to this purchase. state is registered for tax free transactions under Chapter 32, IRS code. Registration number 82-73-0006 K. Items are for the exclusive use ofthe state and not for . 49 TRIBWTJON .: . Divrsfon 1'pscpl/OnginiIA ::Copfes Pghtisher(faxedj, DiylslDn Fpscal, Recelvipg Form: 02-901 Revised: 3/12/2018 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 -Ll, 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 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 t 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 7`h 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 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. Boz 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 270227 0001417944 $229.10 STATE OF ALASKA I MAR 15 201 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 �)-�� I� NotlCe of Pabilc Nearing 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 sppaacin requirements of 20 AAC 25.055 for the drilling of the Hansen H12 ( evision 1), Hansen H12-1-1, Hansen H12 -L2, Hansen 1-I12-1-3, Hansen 1-112-14, Hansen H12 -LS 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 samegpvernmental quarter sections as wells Hansen 1AL1, Hansen H-16 and We H-14. The AOGCC has tentative) scheduled. a public hearing on this application for April 26, 2018, at 10:00 a.m. at 333 West 7th Avenue Anchoragae; 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 hearingq. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after.4pril 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 hearsng� contact the AOGCC's Special Assistant; Jody Colombia, at (907) 793-1221, no later than April 21, 2018. Hsi nature on file// Cathy P. Foerster Commissioner Published: March 13, 2018 4w T Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 1 uue st Energy March 6, 2018 Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Cosmopolitan Project BlueCrest Energy - H12 -L2 Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: lburgess@bluecrestenergy.com RECEIVED E® MAR 0 7 2018 RE: Application for Spacing Exception for H32-11-2 Onshore Horizontal Producer Dear Commissioners, AOGV V BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H1242. H12 -L2 will lie within the same governmental quarter sections as, Hansen 1AL1, 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, n Larry Burgess " Alaska Manager BlueCrest Energy - H92 -L2 Spacing Exception_AOGCC et Ene6gy Application for Spacing Exception Horizontal Producer H12 -L2 Table of Contents Cosmopolitan Project H12 -L2 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 I I P a g e H12-12 Application for Spacing Exception nue st Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H12-12 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 some and the landowner is the same on both sides of the line; Not Applicable — Well is not within 500' of the federal lease line (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the 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 shore 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 -L2 Application for Spacing Exception 'Nest Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project 1-112-12 Application for Spacing Exception The commission will review on application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for on 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 (I) the names of off 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 plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought, all other completed and drilling wells on the property, and all adjoining properties and wells; and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Please see Attachment 2: Affidavit S. Attachments Attachment 1 Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3lPage H92 -L2 Application for Spacing Exception lye st EnArgy March 6, 2018 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7 I Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H1242 Well Dear Commissioners, BlueCrest Alaska Operating LLC is requesting a spacing exception for the proposed H1242 well. Cosmopolitan Project BlueCrest Energy - H12 -L2 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, Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone (907) 754-9563 The foregoing instrument was acknowledged before me on the day of &C -6--C-6 2018. By Andrew A. Buchanan. Notary Public in and for Alaska My Commission Expires: �ZOAS Bruni H. Warrick wr Notary Public, State of Alaska Commission # 1 41 201 020 My Commission Expires December 1, 2018 BlueCrest Energy - H12 -L2 Affidavit 'ADL38"03 L TD 41 Hansen 1A WIN L2 [GSC: ace Coordinates: hing: 2,144,777.67 ftUS ng: 168,845.49 ftUS : 2,329' FSL, 1,524' FEL, Sec. 2, T4S, R15W SM -L2 Top of Production: hing: 2,153,202.50 ftUS ing: 156,603.15 ftUS : 5,132' FSL, 3,427' FEL, Sec. 33, T3S, R15W SM he 17,825.0' MD / 7,070.2' TVD L2 Total Depth: hing: 2,154,003.85 ftUS ng: 155,416.05 ftUS 618'FSL, 4,635'FEL, Sec. 28, T3S, R15W SM h: 19.353.6' MD / 6.575.7' TVD H12 -L1 Multilateral Scale Date 1:25000 02/2812018 Prepared by Field ABuchanan cosmopolitan P&AA-SWL_ice 1 lr�• .. 0 1000 2000 3000 4000 5000ftUS 1:25000 Im M ru ru Ln U.S. Postal Service'" CERTIFIED AN Rpl N I .1111 MAIL° REPT Certgied Mal Fee 13.45 Ir $Fxlra M Services &Foes (clxek evx, ear ❑gBlum ReceiptRrvucepYl E Domestic Mail Only Mail Resnklee Delivery $ G pMen spnaNR ReouXae $ fieo Mal Fee f3 45 ru ❑ileMnReceipf pwe py) $ 0 ❑flNMn Repapt (elecXpnk) $ O ❑CMifiaO Mal RratrideO Dtlivary 8 0 ❑MUX Siar,eNre Raryiretl E 9 F3 (Postage $1.21 n�• Alaska Depart ent of Natural R996W3218 Units Si f5ivision of Oil and Gas Unit Manager 550 W 7th Avenue, Suite1100 Anchorage, AK 99501-3560. 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