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Home My WebLink AboutCO 714Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. C O `i 14i Order File Identifier Organizing (done) RESCAN ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: NOTES: ❑ Two-sided IIIII'IIIIIIIIIIIII DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: o Re,vnNeeded iuuiuiiuiiuu OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: ❑ Other: BY: Angela Date: /s/ Project Proofing 1111111111111111111 BY: Angela `/ Date: f (-c -1-0 IS /s/ Scanning Preparation x 30 = I + = TOTAL PAGES Z--> (Count does not include cover sheet) BY: Angela ✓ Date: 1-(- t l - 2� S /s/ 9�tc Production Scanning Stage 1 Page Count from Scanned File: 1-te (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ✓ YES NO BY: Angela Date: q - \ l._ - 20 l zS /s/ `,6"C Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: Scanning is complete at this point unless rescanning is required. ReSc,nn.„ IIIIIIIRIIIIIIIII "iuuiuumiuu BY: Angela Date: /s/ Comments about this file: Quality Checked III (I'III III IIII III 2/27/2015 Orders File Cover Page INDEX CONSERVATION ORDER NO. 714 Docket Number: CO-14-035 North Fork Unit No. 22-26 Development Gas Well North Fork Undefined Gas Pool North Fork Unit Kenai Peninsula Borough, Alaska 1. December 16, 2014 Cook Inlet Energy, LLC (CIE)'s request for spacing exception — NFU 22-26 2. December 18, 2014 Notice of Public Hearing, Affidavit of Publication, email distribution, mailings 3. December 19, 2014 — January 13, 2015 Emails re: Certified Mail Receipts INDEX CONSERVATION ORDER NO. 714 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage Alaska 99501 Re: THE APPLICATION OF Cook Inlet Energy, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete development gas well North Fork Unit No. 22-26 closer than 3,000' to, and within the same governmental section as, wells that are, or may be capable of, producing from the same pool. IT APPEARING THAT: Docket Number: CO- 14-035 Conservation Order No. 714 North Fork Unit No. 22-26 Development Gas Well North Fork Undefined Gas Pool North Fork Unit Kenai Peninsula Borough, Alaska March 19, 2015 Cook Inlet Energy, LLC (CIE), by letter received December 16, 2014, requested an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete development gas well North Fork Unit No. 22-26 closer than 3,000 feet to, and within the same governmental section as, wells 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 January 22, 2015. On December 18, 2014,,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 and electronically transmitted the notice to all persons on the AOGCC's email distribution list. On December 18, 2014, the notice was published in the ALASKA DISPATCH NEWS. On December 22, 2014, the AOGCC mailed printed copies of the Notice of Public Hearing to all persons on the AOGCC's mailing distribution list. 3. Pursuant to 20 AAC 25.055(d)(1), CIE sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within a 3,000-foot radius of the North Fork Unit No. 22-26 well. CIE provided the AOGCC with a copy of the notice, date of mailing, Certified Mail Domestic Return Receipts, and addresses to which the notice was sent. 4. No protest to the application or request for hearing was received. 5. Because CIE provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 6. The tentatively scheduled public hearing was vacated on January 14, 2015. Conservation Order 714 March 19, 2015 Page 2 of 3 FINDINGS: 1. CIE owns and operates the North Fork Field and the North Fork Unit No. 22-26 development gas well, which are located in Kenai Peninsula Borough, Alaska. 2. North Fork Unit No. 22-26 will be an onshore, deviated well with a surface location 613' from the south line and 1,635' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.). The top of the productive interval is expected to lie 2,155' from the south line and 2,190' from the west line of Section 26, T4S, R14W, S.M. The bottom - hole is projected to be 2,620' from the north line and 1,675' from the west line of Section 26, T4S, R14W, S.M. 3. North Fork Unit No. 22-26 will be located within State of Alaska lease ADL-391211. The nearest property line where ownership or landownership changes lies 3,110' to the northwest. 4. CIE proposes to drill and complete North Fork Unit No. 22-26 as a development gas well in reservoir sandstone beds assigned to the North Fork Undefined Gas Pool. North Fork Unit No. 22-26 will open this gas pool within the same governmental section as, and within 3,000' of, wells that are, or may be capable of, producing from the same pool. 5. North Fork Unit No. 22-26 will be drilled directionally to a structurally advantageous location to access discontinuous and unpredictable fluvial sandstone reservoirs that cannot be efficiently produced from existing wells. 6. On December 17, 2014, CIE sent the application for exception by certified mail to all affected owners, landowners, and operators within 3,000' of the anticipated productive reservoirs within North Fork Unit No. 22-26—i.e., the State of Alaska and CIE. CIE provided addresses and Certified Mail Domestic Return Receipts to the AOGCC as proof that the application was mailed to all affected owners, landowners, and operators. 7. The AOGCC received no comments, objections, or protests in response to the public notice regarding the proposed North Fork Unit No. 22-26 well or to the notifications sent by CIE and to all affected owners, landowners, and operators within 3,000 feet of North Fork Unit No. 22-26. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) is necessary to allow drilling and completion of the North Fork Unit No. 22-26 development gas well at a location that will maximize resource recovery. 2. North Fork Unit No. 22-26 will recover reserves that are not accessible to existing wells. 3. An exception to the well spacing provisions of 20 AAC 25.055(a)(4) for CIE's North Fork Unit No. 22-26 well is consistent with sound engineering and geoscience principles and will not result in waste or jeopardize correlative rights of adjoining or nearby owners. Conservation Order 714 March 19, 2015 Page 3 of 3 NOW THEREFORE IT IS ORDERED: CIE's application for an order granting an exception to the well spacing provisions of 20 AAC 25.055(a)(4) to allow drilling and completion of CIE's North Fork Unit No. 22-26 development gas well within the North Fork Undefined Gas Pool is hereby approved as long as CIE complies with the terms of all lease agreements, Alaska law, and all other legal requirements. DONE at Anchorage, Alaska and dated March 19, 2015. d%17 Cathy P Foerster Chair, Commissioner Mike Gallagher Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, March 19, 2015 1:21 PM To: Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Gallagher, Mike (DOA); Guhl, Meredith D (DOA); Hunt, Jennifer L (DOA); Kair, Michael N (DOA); Loepp, Victoria T (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); Singh, Angela K (DOA); Wallace, Chris D (DOA); AKDCWellIntegrityCoordinator, Alexander Bridge; Allen Huckabay; Andrew Vandedack; Anna Raff, Barbara F Fullmer, bbritch; bbohrer@ap.org; Bill Walker, Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Carrie Wong; Cliff Posey; Colleen Miller, Crandall, Krissell; D Lawrence; Dave Harbour, David Boelens; David Duffy, David Goade; David House; David McCaleb; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAS); Donna Ambruz; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Oskolkosf, George Pollock; ghammons; Gordon Pospisil; Greg Duggin; Gregg Nady; gspfoff; Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Williams, Jennifer L (LAW); Jerry Hodgden; Jerry McCutcheon; Solnick, Jessica D (LAW); Jim Watt; Jim White; Joe Lastufka; news@radiokenai.com; John Adams; Easton, John R (DNR); Jon Goltz; Juanita Lovett; Judy Stanek, Houle, Julie (DNR); Julie Little; Kari Moriarty, Keith Wiles; Kelly Sperback; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Kremer, Marguerite C (DNR); Mary Cocklan-Vendl; Michael Calkins; Michael Duncan; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); Munisteri, Islin Wm (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Sternicki, Oliver R; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler; Tim Mayers; Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bajsarowicz, Caroline J; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Dickenson, Hak K (DNR); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey, King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Todd, Richard 1 (LAW); Tostevin, Breck C (LAW); Wayne Wooster, William Hutto; William Van Dyke Subject: co 714 (North Fork Unit 22-26) Attachments: co714.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 711, Avenue Anchorage, Alaska 99501 Jodi1. Colombie(d-plaska.gov 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 iody.colombie@alaska.gov James Gibbs Jack Hakkila Bernie Karl Post Office Box 1597 Post Office Box 190083 K&K Recycling Inc. Soldotna, AK 99669 Anchorage, AK 99519 Post Office Box 58055 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. Post Office Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 David Hall Richard Wagner Darwin Waldsmith CEO Post Office Box 60868 Post Office Box 39309 Cook Inlet Energy, LLC Fairbanks, AK 99706 Ninilchik, AK 99639 601 W. 51" Ave., Ste. 310 Anchorage, AK 99501 State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W. 7' Ave., Ste. 1100 Anchorage, AK 99503 Angela K. Singh Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Tuesday, January 13, 2015 6:14 PM To: 'Tim Jones' Subject: RE: Certified Mail Receipts for Notice of Request for Spacing Exception NFU 22-26 Tim, I don't recall seeing a Permit to Drill application for the North Fork Unit 22-26 well. Do you know when that application will be submitted? Do you know the anticipated spud date for the well? 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.gov. From: Tim Jones[mailto:Tim.Jones@cookinlet.net] Sent: Friday, December 19, 2014 2:18 PM To: Davies, Stephen F (DOA) Cc: Colombie, Jody J (DOA) Subject: Certified Mail Receipts for Notice of Request for Spacing Exception NFU 22-26 Steve, Please find attached the cert cards for the notification. Please let me know if you need anything else. Have a great weekend. Tim Jones, RPL Senior Landman Cook Inlet Energy, LLC 601 W. 5th Ave., Suite 310 Anchorage, AK 99501 Office: (907) 433-3811 Cell: (907) 350-7426 Cook Inlet Energy w Complete Items 1, 2, and 3. Also complete A; Eli ,�/�� Item 4 If Restricted Delivery is desired. ent s Print your name and address on the reverse ❑ Addre so that we can return the card to you. B. Received by (Printed Name) C. Date of ■ Attach this card to the back of the maiipiece,�- or on the front if space permits. D. Is delivery address different from item 1? ❑ Yes i. Article Addressed to, if YES, enter delivery address below. STA1 E OF ALASKA DEPT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 550 W 7T" AVENUE SUITE 1100 3. Service TYPO ANCHORAGE AK 99501-3560 ❑ certified Mai' ❑ Priority Mall Express^' ❑ Registered ❑ Return Receipt for Merctrandise ❑ Insured Mail ❑ Collect on Delivery 4, Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number 7 014 0150 0001 6012 613 4 (ilanster from service PS Form 3811, July 2013 Domestic Return Receipt ■ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can mtum the card to you. ■ Attach this card to the back of the mailplece, or on the front if sparse permits. 1. Article Addressed to: COOK INLET ENERGY LLC 601 W 5T" AVENUE SUITE 310 ANCHORAGE AK 99501 A. Signature x AM ece ad by finish' N me) C. Date of Delivery C Lin ok 11111_P D. Is delive dress dl Brent from Item 1? ❑ Yes If YES, enter delivery address below. ❑ No 3. Service Type ❑ Certified Mai► ❑ Priority Mail Fprese ❑ Registered ❑ Return Receipt for Merchandise ❑ Insured Mall ❑ Collect on Delivery 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number 7014 0150 0001 6012 6141 Mansfer tmm service kbeo -- PS Form 3811, July 2013 Dormea8c Return Receipt Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-035. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete a gas development well in a governmental section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received December 16, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(a)(4) allowing drilling and completion of onshore location from the existing North Fork Pad. North Fork Unit (NFU) 22-26 Surface Location: 613' from the south line and 1635' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 2155' from the south line and 2190' from the west line of Section 26, T4S, R14W, S.M. Bottom -hole Location: 2620' from the north line and 1675' from the west line of Section 26, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 22, 2015, at 9:00 a.m. at 333 W. 7t Ave., 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 January 5, 2015. 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 793-1221 after January 9, 2015. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 71h Ave., Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on January 20, 2015, except that, if a hearing is held, comments must be received no later than the conclusion of the January 22, 2015 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 793-1221, no later than January 19, 2015. Daniel T. Seamount, Jr. Commissioner STATE OF ALASKA ADVERTISING ORDER ADVERTISTNG ORDER NUMBER AO-15-015 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O. 12/12/14 AGENCY PHONE: �(907) 793-1221 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: Publish 12/18/14. FAX NUMBER: (907)276-7542 TO PUBLISHER: Alaska Dispatch News SPECIAL INSTRUCTIONS: PO Box 149001 Anchorage, Alaska 99514 -- `- iYI �Jw-�__ - � p- I�, G TYPE i�'�, - �"' �� III„I —_ _ ew�•�. i�ll�h �,uV II �� -- DESCRIPTION PRICE CO-14-035 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT TO: Department of Administration Division of AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 Page I of 1 Total of All Pa es $ REF Type Number Amount Date Comments I PvN ADN84501 2 Ao AO-15-015 3 4 FIN AMOUNT SY CC PGM LGR ACCT FY DIST LIQ I 15 02140100 73451 15 2 3 4 5 Purchasing A ho ty Title: 4 Purchasing Authority's Signature Telephone Number ISTRIBUTION: ivision Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving r Form:02-901 Revised 12/17/2014 270227 0001355748 $ 263.96 AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Kayla Lavea being first duly sworn on oath deposes and says that he/she is a representative of the Alaska Dispatch News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on December 18, 2014 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 24th da of December, 2014 Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES �` ,`�•�% m_® Cf OF NV Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket # CO-14-035. The application of Cook Inlet Energy (CIE) for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill and complete a gas development well in a governmental section containing wells that are, or may be capable of, producing from the same pool. CIE, by letter received December 16, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order under 20 AAC 25.055(a)(4) allowing drilling and completion of onshore location from the existing North Fork Pad. North Fork Unit (NFU) 22-26 Surface Location: 613' from the south line and 1635' from the east line of Section 26, T4S, R14W, Seward Meridian (S.M.) Top of Productive Interval Location: 2155' from the south line and 2190' from the west line of Section 26, T4S, R14W, S.M. Bottom -hole Location: 2620' from the north line and 1675' from the west line of Section 26, T4S, R14W, S.M. The AOGCC has tentatively scheduled a public hearing on this application for January 22, 2015, at 9:00 a.m. at 333 W. 7th Ave., 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 January 5, 2015. 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 793-1221 after January 9, 2015. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 W. 7th Ave., Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on January 20, 2015, except that, if a hearing is held, comments must be received no later than the conclusion of the January 22, 2015 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 793-1221, no later than January 19, 2015. Daniel T. Seamount, Jr. Commissioner AO-15-015 Published: December 18, 2014 III— ecel Y BAN ® �D 2 2015 AoG�C Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Thursday, December 18, 2014 1:18 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Herrera, Matthew F (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Konkler, Stacey L (DOA); Loepp, Victoria T (DOA); Mayberry, David J (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Skutca, Joseph E (DOA); Wallace, Chris D (DOA); AKDCWellIntegrityCoordinator, Alexander Bridge; Allen Huckabay; Andrew VanderJack; Anna Raff, Barbara F Fullmer, bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose; Bill Walker; Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Carrie Wong; Cliff Posey, Colleen Miller, Corey Cruse; Crandall, Krissell; D Lawrence; Dave Harbour, David Boelens; David Duffy; David Goade; David House; David McCaleb; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAA); Donna Ambruz, Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Oskolkosf, George Pollock; ghammons; Gordon Pospisil; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Williams, Jennifer L (LAW); Jerry Hodgden; Jerry McCutcheon; Solnick, Jessica D (LAW); Jim Watt; Jim White; Joe Lastufka; news@radiokenai.com; John Adams; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Judy Stanek, Houle, Julie (DNR); Julie Little; Kari Moriarty, Keith Wiles; Kelly Sperback; Klippmann; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker; Louisiana Cutler, Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Landt; Mark Wedman; Kremer, Marguerite C (DNR); Michael Duncan; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Paul Craig; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Sternicki, Oliver R; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Tina Grovier (tmgrovier@stoel.com); Todd Durkee; Tony Hopfinger, trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net; Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Dickenson, Hak K (DNR); Hans Schlegel (hans.schlegel@ge.com); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck, Josh Kindred; Kenneth Luckey; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richmond, Diane M; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott To: R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, William Hutto; William Van Dyke Subject: CIE Spacing Exception NFU 22-26 Attachments: Notice of Public Hearing CO-14-035.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 71h Avenue Anchorage, Alaska 99501 Jodu. Colombieraalaska. aov 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 iody.coiornbie�a-,aiaska.gov James Gibbs Jack Hakkila Bernie Karl Post Office Box 1597 Post Office Box 190083 M Recycling Inc. Soldotna, AK 99669 Anchorage, AK 99519 Post Office Box 58055 Fairbanks, AK 99711 Gordon Severson Penny Vadla George Vaught, Jr. 3201 Westmar Cir. 399 W. Riverview Ave. Post Office Box 13557 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 Denver, CO 80201-3557 David Hall Richard Wagner Darwin Waldsmith CEO Post Office Box 60868 Post Office Box 39309 Cook inlet Energy, LLC Fairbanks, AK 99706 Ninilchik, AK 99639 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W. 7:h Ave., Ste. 1100 Anchorage, AK 99503 Angela K. Singh Cook Inlet Energy_ A Wholly Owned Subsidiary of Miller Energy Resources December 16, 2014 Alaska Oil and Gas Conservation Commission 333 West 7t' Ave., Suite 100 Anchorage, Alaska 99501 Re: Spacing Exception for the Proposed NFU #22-26 Well Dear Commissioners, DEC 16 2014 CIE hereby applies for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(4). Specifically, CIE requests approval to drill a gas development well, NFU #22-26, into a governmental section which contains other gas wells producing or capable of producing from the same pool. CIE proposes to drill NFU #22-26 from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M., 613 feet from the south line and 1,635 feet from the east line. NFU #22-26 will have a bottomhole location within Section 26, T. 4 S., R. 14 W., S.M., 2,620 feet from the north line and 1,675 feet from the west line. The top of the Tyonek productive zone is anticipated to fall roughly 2,155 feet from the south line and 2,190 feet from the west line of Section 26. CIE is planning to test and potentially produce from zones within Section 26, T. 4 S., R. 14 W., S.M. The NFU #22-26 is being drilled from the North Fork Pad directionally in a Northwesterly direction. The well is being drilled for numerous gas objectives including sands ranging from approximately 4,900' TVD to as much as 9,000' TVD. The well is ultimately designed to TD in the SW/4SE/4NW/4 of Section 26, T. 4 S., R. 14 W., S.M. The proposed well is being drilled into an undrilled portion of the field and is interpreted to intersect these numerous gas sands in an advantageous structural and stratigraphic position for draining gas reserves incapable of being drained from existing wells. The well may also prove up additional locations prospective for gas. Because of the necessity of directionally drilling the well from our existing pad and due to the shallow depths potential sands occur, a location conforming to existing state spacing cannot economically be drilled. It is therefore desirable to drill an exception location. The attached Exhibit A lists the Landowners, Owners, and Operators within 3,000 feet of NFU #22-26 and their contact information. The attached Exhibit B is a plat showing the location of NFU #22-26 and all other completed wells on the property, at a scale which complies with 20 AAC 25.055(d)(2). 601 W. 5t' Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 fax Spacing Exception for Proposed NFU #22-26 Well December 16, 2014 The attached Exhibit C is the Notice provided to Landowners, Owners and Operators by certified mail. The attached Exhibit D is an affidavit from Mr. Tim Jones, Registered Professional Landman # 84167 and Senior Landman for CIE, verifying the plat and facts contained herein. Respectfully, � David Hall CEO Spacing Exception for Proposed NFU #22-26 Well December 16, 2014 EXHIBIT A Landowner Owner Operator As defined in As defined in As defined in Legal Description AS 31.05.170(7) AS 31.05.170(10) 20 AAC 25.990 (46) State of Alaska Cook Inlet Cook Inlet ADL 391211 Energy, LLC Energy, LLC T.4S., R.14W., Seward Meridian, Alaska Section 23: Surveyed, all, 640.00 acres; Section 24: Surveyed, all, 640.00 acres; Section 26: Surveyed, all, 640.00 acres; Section 27: Surveyed, E2, E2W2, W2SW4, SW4NW4, 600.00 acres; Containing 2,520.00 acres, more or less. Contact Information: State of Alaska Department of Natural Resources Alaska Division of Oil and Gas 550 W 7th Avenue, Suite 1100 Anchorage, AK 99503 907-269-8800 Cook Inlet Energy, LLC 601 W. 5th Avenue, Suite 310 Anchorage, AK 99501 907-334-6745 CERTIFIED MAIL 7014 0150 0001 6012 6134 CERTIFIED MAIL 7014 0150 0001 6012 6141 ■ Complete items 1, 2, and 3. Also complete Item 4 If Restricted Delivery is desired. s Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: STATE OF ALASKA DEPT OF NATURAL RESOURCES DIVISION OF OIL AND GAS 550 W 7T" AVENUE SUITE 1100 ANCHORAGE AK 99501-3560 AL B. Received by (Printed Name) C. Date of eliver (r -f—(1 7 -1 k' 1 D. Is delivery address different from Item 1? ❑ Yes If YES, enter delivery address below: Flo 3. Service TAM ❑ Certified Meal' ❑ Priority Mail Express- ❑ Registered 0 Return Receipt for Merehandle ❑ Insured Mall ❑ Collect on Delivery 4. Restricted Delivery? (Extra Fee) 0 Yes 2. Article Number 7014 0150 0001 6012 6134 (7tansfer from service label PS Form 3811, July 2013 Domestic Return Receipt ■ Complete items 1, 2, and 3. Also complete Item 4 if Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. ■ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: COOK INLET ENERGY LLC 601 W 5T" AVENUE SUITE 310 ANCHORAGE AK 99501 A. Signature X �0�Cq""` 0Addnresse ece11MR1 nte N me) C. Date of Deliver U 12 D. Is del rasa d1frerent from Item 1? ❑ Yes If YES, enter delivery address below: ❑ No 3. Service Type ❑ Certified Mall° E3 Prkxity Mail Express" 0 Registered 0 Return Receipt for Merchandts 0 muffed Mail ❑Collect on Delivery 4. Reetrictad Delivery? (Exba Fee) 0 Yes 2. ArticleMans? rftm 7014 0150: 0001 6012 6141 (fiar�fer from sendce retell PS Form 3811, July 2013 Domestic Return Receipt Spacing Exception for Proposed NFU #22-26 Well December 16, 2014 EXHIBIT B T. 4 S., R. 14 W., S.M. 1,500 ft. Top of Tyonek Productive _22 Zone T.`-49GC ti� 23-25 i 1,500 ft. T _49GG i a 24-2� 14 25' NFI4Z4 . T 't49G t 3 1 i 41-3F —'-4CC t 7 TS -49G0 4, j{ 32 M # Smk� i1CiW 7 Spacing Exception for Proposed NFU #22-26 Well December 16, 2014 EXHIBIT C _ Cook Inlet Energy_ A Wh ny Owned Subsdary of Mdkr Energy Rewu¢n December 16, 2014 Landowners, Owners and Operators See Distribution List West Foreland Area Cook Inlet Basin, Alaska Re: Notice Under 20 AAC 25.055(d) of Cook Inlet Energy, LLC's Application for a Spacing Exception for the Drilling of the NFU #22-26 Well Dear Landowner, Owner and/or Operator, Cook Inlet Energy, LLC (CIE) is applying for a Spacing Exception under 20 AAC 25.055(d) and this Notice is being sent by certified mail to meet the notification requirements under 20 AAC 25.055(d). Specifically, CIE plans to drill the NFU #22-26 Well and is applying for an exception under 20 AAC 25.055(d) to the well spacing requirements in 20 AAC 25.055(a)(4). CIE plans to drill the NFU #22-26 Well for gas within the same governmental section of other wells capable of producing from the same pool. CIE proposes to drill the NFU #22-26 Well from an onshore location from the existing North Fork Pad, located within Section 26, T. 4 S., R. 14 W., S.M., 613 feet from the south line and 1,635 feet from the east line. The NFU #22-26 Well will have a bottomhole location within Section 26, T. 4 S., R. 14 W., S.M., 2.620 feet from the north line and 1,675 feet from the west line. CIE is planning to test and potentially produce from zones within Section 26, T. 4 S., R. 14 W. The SE quarter of Section 26 contains another well, the NFU #34-26, that is capable of or producing from the same pool. CIE, through a search of the public record, has identified you as a Landowner, Owner or Operator (as defined in AOGCC regulations) within 3,000 feet of the proposed NFU #22-26 Well. Please contact me should you require additional information. Sincerely,. i Tim Jones Senior h andman Distribution List: Alaska Division of Oil and Gas Cook Inlet Energy, LLC 601 W. 5fh Avenue, Suite 310, Anchorage, AK 99501 (907) 334-6745 * (907) 334-6735 fax Spacing Exception for Proposed NFU #22-26 Well December 16, 2014 EXHIBIT D Affidavit State of Alaska, Third Judicial District Personally appeared before me, Timothy Jones, who, being duly sworn according to law, deposes and says: 1. I, Timothy Jones, am a Senior Landman for Cook Inlet Energy, LLC and a Registered Professional Landman #84167. 2. I have prepared the foregoing Exhibits following a thorough review of land status records at the State of Alaska, Department of Natural Resources, Division of Oil and Gas, the Kenai Peninsula Borough, and the State Recorder's Office for the Homer Recording District. The Landowners, Owners and Operators, as defined in relevant state statutes and regulations, identified in Exhibit A are the result of that record search and correct to the best of my knowledge. 4. The well location was taken from Cook Inlet Energy, LLC's Permit to Drill submitted to AOGCC. 5. The Notice in Exhibit C was sent to the Landowners, Owners and Operators identified in Exhibit A by certified mail. Further the affi4 t sayeth naught. Timothy Jon sl RPL #84167 UNITED STATES OF AMERICA § STATE OF ALASKA Date Subscribed and sworn to before me on the j6: day of December, 2014. STATE OF ALASKA NOTARY PUBLIC�� Notary Public DIANNA L. LEWIS M Commission Expires Jan.18, tote. My commission expires: L . 1 020qj