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Home My WebLink AboutCO 759CONSERVATION ORDER 759 Docket Number: CO -18-028 1. September 27, 2018 Hilcorp application for spacing exception H-04-LO1 2. October 7, 2018 Notice of hearing, affidavit of publication, email distribution, mailings STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7' Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest ) Docket Number: CO -18-028 Alaska Operating LLC to drill, complete, ) Conservation Order 759 test, and produce the Hansen H -04-L01 ) Cosmopolitan Unit development oil well branch within the ) Hansen Undefined Oil Pool same governmental quarter section as, and ) Hansen H-04-LOI within 1,000 feet of, a well that is, or may be ) Oil Development Well Branch capable of, producing from the same pool. ) Kenai Peninsula Borough, Alaska November 19, 2018 IT APPEARING THAT: 1. By a letter received October 1, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H-04-LO1 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, 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 November 8, 2018. On October 4, 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 October 7, 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-04-LO1 development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—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. 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-04-LO1 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,173 feet from the south line (FSL) and 1,552 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West (RI 5 W), Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 583 feet FSL and 3,819 feet FEL of Section 33, Township 3 South (T3S), CO 759 November 19, 2018 Page 2 of 3 R15W, S.M. The bottom -hole location will lie offshore about 1,286 feet FSL and 4,926 feet FEL of Section 33, T3 S, R1 5W, S.M. 3. For well branch Hansen H-04-LO1, the kick-off point, top -of -productive interval, and bottom - hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H-04-LO1 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-04-LO1 will be located within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-04 and development oil well branches Hansen H-04-1,02 and Hansen H-04-LO3 that are, or may be capable of, producing from the same oil pool. The well path and bottom -hole location for Hansen H-04-LO1 were chosen—based on reservoir mapping and modeling results—to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H-04-LO1 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-04-LOI 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 October 1, 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-04-LO1 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 November 19, 2018. 7 � Z "� 4�5� Hollis S. French Cathy . Foerster Daniel T. Seamount, Jr. Chair. Commissioner Commissioner Commissioner CO 759 November 19, 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 AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing -a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day 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, complete, test, and produce the Hansen H-04-LO1 development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO -18-028 Conservation Order 759 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-04-LOI Oil Development Well Branch Kenai Peninsula Borough, Alaska November 19, 2018 By a letter received October 1, 2018, BlueCrest Alaska Operating LLC (BlueCrest) requested an exception to the statewide spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Hansen H-04-LOI development oil well branch within the same governmental quarter section as, and within 1,000 feet of, a well that is, 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 November 8,2018. On October 4, 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 October 7, 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-04-LOI development well branch—i.e., the State of Alaska and the Bureau of Ocean Energy Management—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. 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-04-LOI will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,173 feet from the south line (FSL) and 1,552 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West (RI 5W), Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 583 feet FSL and 3,819 feet FEL of Section 33, Township 3 South (T3S), CO 759 November 19, 2018 Page 2 of 3 R15W, S.M. The bottom -hole location will lie offshore about 1,286 feet FSL and 4,926 feet FEL of Section 33, T3S, R15W, S.M. 3. For well branch Hansen H-04-LO1, the kick-off point, top -of -productive interval, and bottom - hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H-04-LO1 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H-04-LO1 will be located within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-04 and development oil well branches Hansen H-04-1,02 and Hansen H-04-LO3 that are, or may be capable of, producing from the same oil pool. 6. The well path and bottom -hole location for Hansen H-04-LO1 were chosen—based on reservoir mapping and modeling results—to ensure greater ultimate recovery by maximizing the amount of wellbore open to the reservoirs and extracting oil that cannot be efficiently produced by existing wells. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(3) is necessary to allow the drilling, completion, testing, and regular production of the Hansen H-04-LOI 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-04-LOI 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 October 1, 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-04-LOI 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 November 19, 2018. //signature on file// //signature on file// //signature on file// Hollis S. French Cathy P. Foerster Daniel T. Seamount, Jr. ',.. Chair, Commissioner Commissioner Commissioner ��"`°"`°� CO 759 November 19, 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 AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day 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 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-027 Docket Number: CO -18-028 Docket Number: CO -18-029 Docket Number: CO -18-030 Docket Number: CO -18-031 Docket Number: CO -18-032 Docket Number: CO -18-033 Docket Number: CO -18-034 The applications of BlueCrest Energy (BlueCrest) for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-04 well and the Hansen H -04 -LO I, Hansen H- 04-1,02, Hansen H -04-L03, Hansen H -04-L04, Hansen H-04-1,05, Hansen H-04-1,06, and Hansen H-04-1,07 well branches. BlueCrest, by letter dated September 27, 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 well and well branches will be drilled within the same governmental quarter sections as, and lie within 1,000 feet of wells or well branches that are, or maybe capable of producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for November 8, 2018, at 10:00 a.m. at 333 West 7"' 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 October 24, 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 October 25, 2018. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7s' Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on November 7, 2018, except that, if a hearing is held, comments must be received no later than the conclusion of the November 8, 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 November 5, 2018. //signature on file// Cathy P. Foerster Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMITINVOICE SHOWING ADVERIISINGORDER NO., CERTIFIED AFFIDAVITOF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO -19-011 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O.AGENCY 10/42018 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 LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 Form: 02-901 Revised: 10/3/2018 AFFIDAVIT OF PUBLICATION Account #: 270227 Order# ST OF AK/AK OIL AND GAS Cost CONSERVATION COMMISSION 333 WEST 7TH AVE STE 100 amriinwnrc, AK Oa5n1'iF'to STATE OF ALASKA THIRD JUDICIAL DISTRICT Sarah Jennett 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 October 07. 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 fore oing publication is not in excess of the rate r ar ed private individuals. and sworn to before me this 8th day of October,, 20018 AAAVM mw Notary Public in and for The State of Albska. Third Division Anchorage, Alaska MY COMMISSION Notary Public BRITNEY L. THOMPSON State of Alaska My Commission Expires Feb 23, 2019 0001428719 Product ADN -Anchorage Daily News $283.88 Placement 0300 Position 0301 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -18-027 Docket Number: CO -18-028 Docket Number: CO -18-029 Docket Number: CO -18-030 Docket Number: CO -18-031 Docket Number: CO -18-032 Docket Number: CO -18-033 Docket Number: CO -18-034 The applications of BlueCrest Energy (BlueCreSO for an exception to the spacing requirements of 20 AAC 25.055 for the drilling of the Hansen H-04 well and the Hansen H -04-L01, Hansen H-04-1,02, Hansen 1-1-04-1-03, Hansen H-04-1,04, Hansen H- 04-LO5, Hansen H-04-1-06, and Hansen H-04-1.07 well branches. BlueCrest, by letter dated September 27, 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 well and well branches will be drilled within the same governmental quarter sections as, and lie within 1,000 feet of wells or well branches that are, or maybe capable of producing from the same pool. The AOGCC has tentatively scheduled apublic hearing on this application for November 8, 2018, at 10:00. a.m. at 338 West 7th Avenue, Anchors a, 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 October 24, 2018. If a request for a hearing is not timely flied, 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 October 25, 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 November 7, 2018, except that, if a hearing is held, comments must be received no later than the conclusion of the November 8, 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 Colombia, at '(907) 793-1221, no later than November 5, 2018. //signature on file// Cathy P. FOerster Commissioner 2018 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 1 nue $t Energy September 27, 2018 Alaska Oil and Gas Conservation Commission 333 West 71h Avenue, Suite 100 Anchorage, Alaska 99501 Cosmopolitan Project BlueCrest Energy - H04-101 Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: I b u rgess@ blu ecrestenergy.com RE: Application for Spacing Exception for H04 -11A1 Onshore Horizontal Producer Dear Commissioners, BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H04401. Reservoir modeling indicates that the optimum spacing for the laterals is 800'. Because of that spacing, the laterals conflict with each other. 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 Y. section. 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 (ADNR 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. For 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 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 Andrew Buchanan at 907-754- 9563. Sincerely, Larry Burg Alaska Manager BlueCrest Energy - H04-LO1 Spacing Exception AOGCC lueNest Energy Application for Spacing Exception Horizontal Producer H04 -L 01 Table of Contents Cosmopolitan Project HG4-LOI p Lcation fri Spaarg E> F[)tion 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 1 I Page H04-L0I Application for Spacing Exception lue est Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H04-1_01 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 on 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 maybe 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 some and the landowner is the same on both sides of the line; Not Applicable— Wellbore is drilling for oil. (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the some pool; Please see Attachment 1: Spacing Exception Platt (4) if gas has been discovered, the drilling unit for the pool is a governmental section, not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the some pool. Not Applicable—Target is the Cosmopolitan Undefined Oil Pool 2. Requirements of 20 AAC 25.055 (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under AS 31.05.100. BlueCrest Energy is the only operator and 100% working interest owner within the Cosmopolitan Unit. 3. Requirements of 20 AAC 25.055 (c) A pooling agreement under AS 31.05.100 must be filed with the commission before regular production from the affected property begins. The leases currently being exploited by BlueCrest Energy all fall within the currently unitized Cosmopolitan Unit. Pool rules are not currently identified. 21Page H04 -L01 Application for Spacing Exception nue Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H04 -L01 Application for Spacing Exception The commission will review an application for an exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for 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 (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; BlueCrest Energy LLC Alaska Division of Natural Resources (ADNR) Bureau of Ocean Energy Management (BOEM) Please see Attachment 3: Notification Information (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought all other completed and drilling wells on the property, and all adjoining properties and wells; and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Please see Attachment 2: Affidavit 5. Attachments Attachment I Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 31Page H04 -L01 Application for Spacing Exception uue est Enctrgy September 27, 2018 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7t1 Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H04 -L01 Well Dear Commissioners, Cosmopolitans prcioct BlueCrest Energy - H04-1-01 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 H04401 well. I, Andrew Buchanan, verify that the facts stated are true and the plat correctly portrays all pertinent and required data. Regards, it Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone(907)754-9563 The foregoing instrument was acknowledged before me on the �� day of de—r 2018. By Andrew A. Buchanan. j'c�) C^moo Notary Public in and for Alaska v My Commission Expires: /2 O i8 Eim) arrick te of A,1�ks 41 201 020 Expires, 201 i BlueCrest Energy - H04 -L01 Affidavit H04 and H04 -L01 with [ADL384403 H -12 -LO 7 Hansen to i 3EC33 � eov icv 1-104-1-01 Surface Location (NAD 27) Northing: 2,144,623.03', Easting 168,812.80' 2173' FSL, 1552' FEL, Sec. 2, T4S, R15W SM Surface Casing Point Northing: 2,145,687.06', Easting 165,349.46' 3,143' FSL, 5,044' FEL, Sec. 2, T4S, R15W SM Kick Off Point Northing:2,148,667.44', Easting: 156,089.35' 583' FSL, 3,819' FEL, Sec. 33, T3S, R15W SM Total Depth I Northing: 2,149,401.42', Easting: 155,000.35' 1,286' FSL, 4,928' FEL, Sec. 33, T3S, R15W SM Cosmopolitan Unit Development Date Carpany 26/0912018 BlueCres[Energy Mwf St 1 us Around Production Section Confidentiff� :EC 27. T35, RI SW. SM SEC 26. T35. R15W. SM SE455. T35. R15 .� SEC 36. 0 1000 2000 3000 4000 50MUS 1:30000 un .. . art 0 11111.1111199M. lfflfflrm�� `o AIIClHAt . 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Bureau of Ocean Energy Management–Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. ANC•. SUn Certified Mall Fee - - rU $ tr Extra rn RecelPllFsee(dactr—lana ale r.gPprypne,a, ❑Ret Ourn neNcop» E_ i_, _— G ❑RMu,n Recel adatl.Jo) S _1 L_" Postmark C3 ❑ ceNaad Mall Reamibd cai.en f , _- _— Here Q ❑PDuX SIB�Wre Requl,ed { _ s,- _ ^QFOUH Slgretu,a Restricted >W.' $ 31 L'I Bureau of Ocean Energy Management- Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. Ik1i7uL't7�59uii .un Co- i`. Ir s rTt Extra ices /M+e. Uw. rAtMysgyx4-. . ❑Item Reenle fl+a<agl f ! n.l O ❑Rehm RecOMt lel rowdy - $ Past."C3 ❑Chased MilRmelcled 0.awy $ add iea e) ❑aeua sg,tlun RewXea E�_ .-. ❑aa,tt slgreW,e Resldnee omlaans --- Bureau of Ocean Energy Management–Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. ANC•. SUn Certified Mall Fee - - rU $ tr Extra rn RecelPllFsee(dactr—lana ale r.gPprypne,a, ❑Ret Ourn neNcop» E_ i_, _— G ❑RMu,n Recel adatl.Jo) S _1 L_" Postmark C3 ❑ ceNaad Mall Reamibd cai.en f , _- _— Here Q ❑PDuX SIB�Wre Requl,ed { _ s,- _ ^QFOUH Slgretu,a Restricted >W.' $ 31 L'I Bureau of Ocean Energy Management- Alaska Region Office of Leasing and Plans 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. Bureau of Ocean Energy Management - Alaska Region Office of Leasing and Pians 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. Ik1i7uL't7�59uii .un i`. m toCar Fi Mail Fee $ M ExUa rvice(cieo.X Da:, add iea e) ❑Rsnm Re,;elpl Rladcaprl O$ ❑Rehm RewlN (abc0onic) S 1' •' VMelM9M O r1 CMMad Mall ReSaictM Oelivmy E "a O Adu115ig,uWe Raryi,ed S .. r. uA. Ado $lg�lum ria9de!rJ G.�re.rj v C3 ctage Bureau of Ocean Energy Management - Alaska Region Office of Leasing and Pians 3801 Centerpoint Drive, Suite 500 Anchorage, Alaska 99503. Alaska Departinent of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. i I I � tra _ren klrw ov..ullr �y_a t OR R—iptt,a:d pm It ��i;lll- rW (. ❑Rahn RaceWt (aecbaad S ]TII.M - Postmark ( QCatMed Mail Rabbeted p lwery g vj- • •I \• Here 1 QMUX Sipr,eture Rega4e0 S_$4-1� pMPrc sienae,re RealR[al �u.v`ry$ - -- ( Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. I Cerlifieol Mail Fee I 6. Sicea8 Feas(mem eat Pra rae�`�a q - I ❑ Relvn RecelPl (tavtlUupy) $ ❑A-,— resew (elecnWc) $_ Postmark ❑Cm'X Mall ReaMcltl Deban $ti—�,2 Here �Muh aqutue RequYed $ - QMPX SXPIaturePesekAetl De6vay$�_—... ' Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 •• .1 Anchorage, Alaska 99501-3560. _— ] Certiried Mail Fee $.4�I $ _ Fsta SerncesB Fees kXaPx Kv.addlee r� ❑Rehm PacefA PerdcoPf1 $ � Iy� J �RaWm ReceiN (ebceonl� $ tom.. :A fDaBRt �'. ) OCart?,etl Mal RevlhSan Dagvary $'.f}-�..: ❑MUX $iry,aPae RBgUYea $ __yly'. .... .. Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave. Suite 1100 Anchorage, Kaska 99501-3560. CERTIFIEDU.S. Postal Service'� MAILO RECEIPT Iti Domestic fmrt ui CerGfieC Mail Fee (bA D' S 1 M Era Sa ccs 6 Fear (M1e bP andrae ap fnpp:e) ^ O ClReam RaPalP lhe.dcaPq $ _ 111 Rl ❑RelwnRmWr lelximac) S .?II fll C3 $ --iJ.. ... •� Here Aifi,M1 Slgrnture aest,4.iM De!rvery 4 J. m CO 0- 1111 ru C3 t7 E" I I 1 Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7thAve, Suite 1100 Anchorage, Alaska 99501-3560. Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. Jut Postal rn CERTIFIED MAIL" RECEIPT ` Domest)c Mail Only n $ -r n AtdCfAC':�- t n MXraXaP1W s -r___— __ .. PoS p CerPPeA Mal Fea . - - — --.-; _. ___ r $ i2, ys Fila Services Fees Whecx Gu, addb ) \ ) ❑Rawm it aiptRwdwPN $ Yll I!I a D ] ❑ R¢lu:n RaeelA (axePnkl S -1-LI-LA. Postmark 7 ❑CertIPeO Mal fiwheLLd Dalrvay S tI--_— love ❑Molt 51®'eNe RxPietl $_:�_ C7MaX s+yaataa ResXMea DaSaav $ -- Alaska Departinent of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. i I I � tra _ren klrw ov..ullr �y_a t OR R—iptt,a:d pm It ��i;lll- rW (. ❑Rahn RaceWt (aecbaad S ]TII.M - Postmark ( QCatMed Mail Rabbeted p lwery g vj- • •I \• Here 1 QMUX Sipr,eture Rega4e0 S_$4-1� pMPrc sienae,re RealR[al �u.v`ry$ - -- ( Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. I Cerlifieol Mail Fee I 6. Sicea8 Feas(mem eat Pra rae�`�a q - I ❑ Relvn RecelPl (tavtlUupy) $ ❑A-,— resew (elecnWc) $_ Postmark ❑Cm'X Mall ReaMcltl Deban $ti—�,2 Here �Muh aqutue RequYed $ - QMPX SXPIaturePesekAetl De6vay$�_—... ' Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 •• .1 Anchorage, Alaska 99501-3560. _— ] Certiried Mail Fee $.4�I $ _ Fsta SerncesB Fees kXaPx Kv.addlee r� ❑Rehm PacefA PerdcoPf1 $ � Iy� J �RaWm ReceiN (ebceonl� $ tom.. :A fDaBRt �'. ) OCart?,etl Mal RevlhSan Dagvary $'.f}-�..: ❑MUX $iry,aPae RBgUYea $ __yly'. .... .. Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave. Suite 1100 Anchorage, Kaska 99501-3560. CERTIFIEDU.S. Postal Service'� MAILO RECEIPT Iti Domestic fmrt ui CerGfieC Mail Fee (bA D' S 1 M Era Sa ccs 6 Fear (M1e bP andrae ap fnpp:e) ^ O ClReam RaPalP lhe.dcaPq $ _ 111 Rl ❑RelwnRmWr lelximac) S .?II fll C3 $ --iJ.. ... •� Here Aifi,M1 Slgrnture aest,4.iM De!rvery 4 J. m CO 0- 1111 ru C3 t7 E" I I 1 Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7thAve, Suite 1100 Anchorage, Alaska 99501-3560. Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7th Ave, Suite 1100 Anchorage, Alaska 99501-3560. Jut rn CoMed MSH Fee $3.4151 aD Ir $ -r m mus XMB email da YIP.PP�prPgalgl Owam rra.a $+mwM $ ru❑ePrnRauol MXraXaP1W s -r___— __ .. PoS c3 ❑0.1Sb•wNrM.e uxaix S Her. O _ (]MUX SguXn Rntricled Deway $ . _ _ _ _ C3 Postage M1 . Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager 550 W 7thAve, Suite 1100 Anchorage, Alaska 99501-3560. Ln - t — I to117 W mM Ua Sarvac FO FVC. i.��w+bo., m1%ref,y aPPr�,:.p CIR.n.., R...weP eu,+gN1 4 —a tt.tPods. OI, t's41FviMmlNynitlN lAM.wv $ 1 _ Halla O ❑MuX SB'Iature Rep�me0 f 1 �M1111 $Vpatue RASMciM L :. . _ I I Alaska Department of Natural Resources - Units Section Division of Oil and Gas Unit Manager I 550 W 7thAve, Suite 1100 I Anchorage, Alaska 99501-3560.