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Home My WebLink AboutCO 770CONSERVATION ORDER 770 Docket Number: CO -19-003 1. January 7, 2019 B1ueCrest Energy application for a Spacing Exception 1-1-13-1,02 2. January 15, 2019 Notice of hearing, affidavit of publication, email distribution, mailings 3. July 23, 2019 B1ueCrest Energy request to cancel PTD and therefore Spacing exception 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 -13-L02 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 -19-003 Conservation Order 770 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-13-1,02 Oil Development Well Branch Kenai Peninsula Borough, Alaska February 22, 2019 By a letter received January 8, 2019, 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-13-1,02 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 February 21, 2019. On January 14, 2019, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On January 15, 2019, 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 1-1-13-1,02 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. 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 1-1-13-1,02 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,344 feet from the south line (FSL) and 1,524 feet from the east line (FEL) of Section 2, Township 4 South, Range 15 West (R15 W), Seward Meridian (S.M.). The top of the Hansen Undefined producing interval location will lie offshore about 3,084 feet FSL and 1,029 feet FEL of Section 28, Township 3 South (T3S), CO 770 February 22, 2019 Page 2 of 3 R15W, S.M. The bottom -hole location will lie offshore about 3,840 feet FSL and 2,220 feet FEL of Section 28, T3S, R15W, S.M. 3. The surface location for Hansen H-13-1,02 lies on private property. A portion of the well passes through State of Alaska leases ADL 18790 and ADL 391903. The top -of -productive interval and bottom -hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H -13-L02 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -13-L02 will be located within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-13 and development oil well branches Hansen H-13-1,01, Hansen H -13-L03, Hansen H -13-L04, and Hansen H-13-1,05, that are, or may be capable of, producing from the same oil pool. 6. The well path and bottom -hole location for Hansen H -13-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 -13-L02 development oil well branch in order to maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H-13-1,02 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 January 8, 2019, 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-13-1,02 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 February 22, 2019. P� Cathy P. Foerster Daniel T. Seamount, Jr. Commissioner Commissioner CO 770 February 22, 2019 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 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 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF BlueCrest Alaska Operating LLC to drill, complete, test, and produce the Hansen H-13-1,02 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-] 9-003 Conservation Order 770 Cosmopolitan Unit Hansen Undefined Oil Pool Hansen H-13-1,02 Oil Development Well Branch Kenai Peninsula Borough, Alaska February 22, 2019 1. By a letter received January 8, 2019, 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-13-1,02 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 February 21, 2019. On January 14, 2019, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On January 15, 2019, 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-13-1,02 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-13-1,02 will be a horizontal, development oil well branch drilled directionally to the northwest from an onshore surface location at 2,344 feet from the south line (FSL) and 1,524 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 3,084 feet FSL and 1,029 feet FEL of Section 28, Township 3 South (T3S), CO 770 February 22, 2019 Page 2 of 3 R15 W, S.M. The bottom -hole location will lie offshore about 3,840 feet FSL and 2,220 feet FEL of Section 28, T3S, R15 W, S.M. The surface location for Hansen H -13-L02 lies on private property. A portion of the well passes through State of Alaska leases ADL 18790 and ADL 391903. The top -of -productive interval and bottom -hole locations will lie within State of Alaska lease ADL 384403. 4. Hansen H -13-L02 will target reservoirs within the Hansen Undefined Oil Pool. 5. Hansen H -13-L02 will be located within the same governmental quarter section as, and within 1,000 feet of, development oil well Hansen H-13 and development oil well branches Hansen H -13-L01, Hansen H -13-L03, Hansen H -13-L04, and Hansen H -13-L05, that are, or may be capable of, producing from the same oil pool. 6. The well path and bottom -hole location for Hansen H -13-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 -13-L02 development oil well branch in order to maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055(a)(3) for the Hansen H -13-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 January 8, 2019, 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 -13-L02 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 February 22, 2019. Hsignature on fileH //signature on fileH Cathy P. Foerster Daniel T. Seamount, Jr. Commissioner Commissioner CO 770 February 22, 2019 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 atter 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. P.O. Box 13557 Denver, CO 80201-3557 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 ki 00 -77n Davies, Stephen F (CED) From: Davies, Stephen F (CED) Sent: Wednesday, July 24, 2019 10:29 AM To: Guhl, Meredith D (CED); Colombie, Jody J (CED); 'tom.mckay@bluecrest.com' Cc: Roby, David S (CED); Schwartz, Guy L (CED); Rixse, Melvin G (CED) Subject: RE: REQUEST TO CANCEL PTD -Hansen H13 -PTD 219-023_23July2019 Done: Well H-13 and all associated well branches cancelled in RBDMS database (PTDs 219-023 thru 219-030) and removed from Geographix database. Conservation Orders 768 thru 775 marked as cancelled in RBDMS and on the website. Copies of this email thread have been printed and they will be scanned and placed in all affected well history files and order files. Thanks, Steve D. 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.daviesealaska.gov. From: Davies, Stephen F (CED) Sent: Wednesday, July 24, 2019 9:58 AM To: Guhl, Meredith D (CED) <meredith.guhl@alaska.gov>; Colombie, Jody J (CED) <jody.colombie@alaska.gov>; tom.mckay@bluecrest.com Cc: Roby, David S (CED) <dave.roby@alaska.gov>; Schwartz, Guy L (CED) <guy.schwartz@alaska.gov>; Rixse, Melvin G (CED) <melvin.rixse@alaska.gov> Subject: RE: REQUESTTO CANCEL PTD -Hansen H13 -PTD 219-023_23July2019 The eight associated spacing exception Conservation Orders must be cancelled too. Thanks, Steve D 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.davies2alaska.gov. From: Guhl, Meredith D (CED) <meredith.guhl@alaska.gov> Sent: Wednesday, July 24, 2019 9:09 AM To: Colombie, Jody J (CED) <lody.colombie@alaska.gov>; tom.mckay@bluecrest.com Cc: Davies, Stephen F (CED) <steve.davies@alaska.gov>; Roby, David S (CED) <dave.roby@alaska.gov>; Schwartz, Guy L (CED) <guy.schwartz@alaska.gov>; Rixse, Melvin G (CED) <melvin.rixse@alaska.gov> Subject: RE: REQUEST TO CANCEL PTD -Hansen H13 -PTD 219-023_23July2019 have updated Hansen H-13 (PTD 219-023) and seven associated laterals H-13 L01 through H-13 L07 (PTDs 219-024 through 219-030)as Canceled. Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Anchorage, AK 99501 meredith.guhl@aiaska.gov Direct: (907) 793-1235 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 Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.¢ov. From: Colombie, Jody J (CED) <iodv.colombie@alaska.gov> Sent: Wednesday, July 24, 2019 9:03 AM To: Rixse, Melvin G (CED) <melvin.rixse@alaska.gov>; tom.mckay@bluecrest.com Cc: Davies, Stephen F (CED) <steve.davies@alaska.aov>; Roby, David S (CED) <dave.robv(@alaska.gov>; Schwartz, Guy L (CED) <suy.schwartz@alaska.gov>; Guhl, Meredith D (CED) <meredith.auhl(c@alaska.eov> Subject: RE: REQUEST TO CANCEL PTD—Hansen H13—PTD 219-023_23Ju1y2C19 Tom, Once the AOGCC cancels PTD 219-023, BlueCrest Alaska will not need a bond for this well. Jody From: Tom McKay <tom.mckav@bluecrestenerey.com> Sent: Tuesday, July 23, 2019 2:23 PM To: Schwartz, Guy L (CED) <guy.schwartz@alaska.gov>; Rixse, Melvin G (CED) <melvin.rixse@alaska.eov> Cc:'Tom McKay' <tom.mckav@bluecrestenergV.com>;'Andrew Buchanan' <abuchanan@bluecrestenergy.com> Subject: REQUEST TO CANCEL PTD—Hansen H13—PTD 219-023_23July2019 Guy and Mel, Please be advised that BlueCrest Alaska requests the cancellation of the H13 approved PTD (PTD No. 219-023) since we have no current plans to drill this well at this time. The well API Number is 50-231-20065-00-00, FYI. BlueCrest understands that since this PTD will be cancelled, that no further bonding expenses by the AOGCC would be incurred on H13. Please advise if this is not the case, and if there are any issues with cancelling and voiding this PTD. Thanks and best regards, Tom McKay Principal Drilling Engineer BlueCrest 907-350-9544 cell 907-754-9566 office tom.mckav@bluecrestenergy.com 0) Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -19-001 Well H-13 Docket Number: CO -19-002 Well H-13-LO1 Docket Number: CO -19-003 Well H-13-1,02 Docket Number: CO -19-004 Well H -13-L03 Docket Number: CO -19-005 Well H -13-L04 Docket Number: CO -19-006 Well H-13-1,05 Docket Number: CO -19-007 Well H-13-1,06 Docket Number: CO -19-008 Well 1-1-13-1,07 B1ueCrest, by letter dated January 7, 2019, 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 within 1,000 feet of wells which are, or maybe capable of, producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for February 21, 2019, 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 February 2, 2019. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after February 5, 2019. 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 February 16, 2019, except that, if a hearing is held, comments must be received no later than the conclusion of the February 21, 2019 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 February 8, 2019. Hollis S. French Chair, Commissioner Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -19-001 Well H-13 Docket Number: CO -19-002 Well H-13-LO1 Docket Number: CO -19-003 Well H-13-1,02 Docket Number: CO -19-004 Well H -13-L03 Docket Number: CO -19-005 Well H -13-L04 Docket Number: CO -19-006 Well H-13-1,05 Docket Number: CO -19-007 Well H -13-L06 Docket Number: CO -19-008 Well H -13-L07 BlueCrest, by letter dated January 7, 2019, 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 within 1,000 feet of wells which are, or maybe capable of, producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for February 21, 2019, 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 February 2, 2019. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after February 5, 2019. 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 February 16, 2019, except that, if a hearing is held, comments must be received no later than the conclusion of the February 21, 2019 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 February 8, 2019. //signature on file// Hollis S. French Chair, Commissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOW WG ADVERTISWG ORDER NO, CERTWWD AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISM ENT. ADVERTISING ORDER NUMBER 1 O AO-19-018 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O.AGENCY PHONE: 333 West 7th Avenue 1/14/2019 (907) 279-1433 Anchorage Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PRONE NUMBER: ASAP FAX NUMBER: (907) 276-7542 TO PUBLISHER: Anchorage Dady News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT: - rV_ LEGAL DISPLAY :. fV CLASSIFIED I— OTHER (Specify below) DESCRIPTION PRICE CO-19-001 through CO-19-008 Initials of who prepared AO: Alaska Non -Taxable 92-600185 :SDBM]TINY(iICC SIIoiY1NG9PYRR'nSlKti: :;. gxue.R.iyq;.i�cr.IFIEPAf.PiliAvlrBr. :: �PUBti1CAT}ON:wrTeaTs'AG(asucgxr)u:: ADVCRTLSM£`NT"I:f/: AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Pae 1 of 1 Total of All Pages $ REF Type Number Amount Date Comments I PVN IVCO21795 2 AD AO-19-018 3 a FIN I AMOUNT SY Act Template I PGM LGR Object FY DIST LIQ I 19 A14100 3046 19 z 3 jj 4 Purchasing Authority Name: Tide: Purchasing Authority's Signature Telephone Number 1. .O. it an re IMnampmust 2. he state Is re In ph^ISIo F cgVOnglnal:YQ won all invoices and documents relating to this purchase. under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the stale and not for :Gopleg Publisher ifaFd)'; Drvlsion l%Lscal Receiving M Form: 02-901 Revised: 1/14/2019 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 AFFIDAVIT OF PUBLICATION JAN 17 2019 A O.-, Account S: 270227 ST OF AK/AK OILAND GAS Order# 0001433244 Product ADN -Anchorage Daily News CONSERVATION COMMISSION Cost $249.00 Placement 0300 333 WEST 7TH AVE STE 100 Position 0301 amrunwanF avootnivsao STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly swom on oath deposes and says that he/she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on January 15, 2019 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. 61.1 �-�116LFWVIWIAWZVA� Subscribed and sworn to before me this 15th day of January, 2019 &,-NW jhcyabrm Notary Public)n and for The State otAlaska. Third Division Anchorage, Alaska MY COMMISSIONj.P RE$� Notice Of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -19-001 Well H-13 Docket Number: CO -19-002 Well 1-1-13-1-01 Docket Number: CO -19-003 Well H-13-LO2 Docket Number: CO -19-004 well 1-1-13-1-03 Docket Number: CO -19-005 well H-13-1,04 Docket Number CO -19-006 Well H-13-LO5 Docket,Number: CO -19-007 well H-137LO6 Docket Number: CO -19-008 Well 1-1-13.1-07 BlueCrest, by letter dated January 7, 2019, 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 samegovernmental quarter sections as, and within 1,000 feet of wells which are, or maybe capable of, producing from the same pool. The AOGCC has tentatively scheduled a public hearing on this application for February 21, 2019, at 10:00 a.m. at 333 west 7th Avenue, Anchor 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 February 2, 2019. If a request for a hearing is not timely filed, the AOGCC mayy consider the issuance Of an order without a hearing. To learn If the AOGCC will hold the hearing, call (907) 793-1221 after February 5, 2019. 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 n0 later than 4:30 p.m. on February tb, 2019, except that, if a hearing is held, comments must a received no later than the conclusion of the February 21, 2.019 hearing. If, because of a disability, special accommodations maty be needed to comment or attend the hearing, contact the AOG( Special Assistant, JodyyC0lombie, at (907) 793-1221, n0 later than February 8, 2019. //signature on file// Hollis S. French Chair, Commissioner PublSihad: January 15, 22, 29, 2019 ""-fy Public LRITNEY i.. TNoh?rsDi, Staa of A.las"'a Commisslon Expti s Fe' 1 lur est Energy January 7, 2019 Alaska Oil and Gas Conservation Commission 333 West 711 Avenue, Suite 100 Anchorage, Alaska 99501 Cosmopolitan Project BlueCrest Energy - H-13-102 Spacing Exception_AOGCC 3301 C Street, Suite 202, Anchorage, AK 99503 Larry Burgess Phone: (907)754-9552 Email: (burgess@bluecrestenergy.com RECEIVED RE: Application for Spacing Exception for H-13-11.02 Onshore Horizontal Producer JAN 0 8 2019 Dear Commissioners, AOG V C BlueCrest Alaska Operating LLC hereby applies for a spacing exception for the horizontal production well H-13402. 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 Burgess Alaska Manager BlueCrest Energy - H -13-L02 Spacing Exception_AOGCC DIUfNest Energy Application for Spacing Exception Horizontal Producer H-13-LO2 Table of Contents Cosmopolitan Project H13 -L02 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 H13 -L02 Application for Spacing Exception lue st Energy 20 AAC 25.055. Drilling units and well spacing 1. Requirements of 20 AAC 25.055 (a) Cosmopolitan Project H13 -L02 Application for Spacing Exception The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the some on both sides of the line; Not Applicable — Well is not within 500' of the federal lease line (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the some on both sides of the line; Not Applicable — Wellbore is drilling for oil. (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool, Please see Attachment 1: Spacing Exception Platt (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. Not Applicable — Target is the Cosmopolitan Undefined Oil Pool 2. Requirements of 20 AAC 25.055 (b) A well may not begin regular production of oil from a property that is smaller than the governmental quarter section upon which the well is located or begin regular production of gas from a property that is smaller than the governmental section upon which the well is located, unless the interests of the persons owning the drilling rights in and the right to share in the production from the quarter section or section, respectively, have been pooled under A5 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 H13-Lo2 Application for Spacing Exception DlueNest Energy 4. Requirements of 20 AAC 25.055 (d) Cosmopolitan Project H13-102 Application for Spacing Exception The commission will review an application for on exception to the provisions of this section in accordance with 20 AAC 25.540. The applicant for an exception shall send notice of the application by certified mail to the owners, landowners, and operators described in (1) of this subsection and shall furnish the commission with a copy of the notice, the date of mailing, and the addresses to which the notice was sent. The application must include (1) the names of all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil or within 3,000 feet of a well drilling for gas for which an exception is sought; BlueCrest Energy LLC Alaska Division of Natural Resources (ADNR) Bureau of Ocean Energy Management (BOEM) Please see Attachment 3: Notification Information (2) a plat drawn to a scale of one inch equaling 2,640 feet or larger, showing the location of the well for which the exception is sought all other completed and drilling wells on the property, and all adjoining properties and wells; and Please see Attachment 1: Spacing Exception Platt (3) an affidavit by a person acquainted with the facts, verifying that all facts are true and that the plat correctly portrays pertinent and required data. Please see Attachment 2: Affidavit S. Attachments Attachment 1 Spacing Exception Platt Attachment 2 Affidavit Attachment 3 Notification Information 3lPage H13•L02 Application for Spacing Exception nue est Energy January 7, 2019 State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7`h Avenue, Suite 100 Anchorage, Alaska 99501 RE: Spacing exception for the proposed H-13-1.02 Well Dear Commissioners, Cosmopolitan Project BlueCrest Energy - H-13-1-02 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 H-13402 well. I, Andrew Buchanan, verify that the facts stated are true and the plat correctly portrays all pertinent and required data. Regards, Andrew Buchanan Sr. Operations Geologist BlueCrest Alaska Operating LLC Phone (907) 7549563 The foregoing instrument was acknowledged before me on the day of 2019. By Andrew A. Buchanan. �s�, Notary Public in and for Alaska My Commission Expires: aS:QIE OfJUQSER NOTARY PUBLIC Brunt H. Warrick Ay Dommlsebn b�Nse Dec 1,2022 BlueCrest Energy - H -13-L02 Affidavit H -13-L02 Sp; With 1000' Radius H-13 H -13-L0: ADL38400 asc n, ns,euw. ae H14 rec n. na. miwt�s HIN H121-L•i1C �� H -13-L02 Top of Producdon: Northing:2,156,366.75RUS Easting:159,085.38R11S CSC:3,084- FSL, 1,029' FEL, Sec. 28, T3S, R1SW SM Depth:18300T7123.67' Total Depth: Nonhing:2,157,156.00RUS Easting:157,915.00RUS CSC:3,840' FSL, 2,220' FEL, See. 28, T38, R1SW SM Depth: 19807.113'16630.17' .1 e.... a,aw. w H-13 Multi -Lateral Producer 8ca/e Dara 1:30000 04/0112019 Freparedby. Field ABuchanen Cosmopolitan .0 ng Exception Map and Production Interval .0 n, na.. sw W . v. M. R.W.w aec c. ru. .1W ADL187 0 1000 2000 3000 4000 5000ftUS 1:30000 ADL� YL M, nq PIIW. W ¢c e, nenuw e. 7 - � aseal. t»,enw,w fec',MNI ew Pe-] H-13-L02 Spacing Exception Section -ST0. 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