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Home My WebLink AboutC0 798Conservation Order 798 Deep Creek Unit, Happy Valley B-15 1. September 30, 2021 Request for Spacing Exception 2. October 1, 2021 Emails between Hilcorp and AOGCC 3. October 04, 2021 Notice of Public Hearing, Affidavit, and Email List ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 71n Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp ) Docket Number: CO -21-018 Alaska, LLC for a spacing exception to ) Conservation Order 798 perforate and produce the Deep Creek Unit ) HVB-15 well in the Deep Creek Undefined ) Deep Creek (Happy Valley) HVB-15 Sterling Gas Pool within the Deep Creek ) Development Gas Well Field. ) Kenai Peninsula Borough, Alaska November 9, 2021 IT APPEARING THAT: 1. By letter dated September 30, 2021, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving a spacing exception to allow perforation of, and regular production from the Deep Creek Unit Happy Valley No. B-15 (HVB-15) development gas well within the Deep Creek Undefined Sterling Gas Pool, Deep Creek Unit, Deep Creek Field, Cook Inlet Basin. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for November 9, 2021. On October 4, 2021, 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 5, 2021, the AOGCC published the notice in the Anchorage Daily News. 3. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the HVB-15 well and provided the notice, addresses to which the notices were delivered, and certified mail receipts to AOGCC. 4. No comments or objections were received by the AOGCC. 5. No request for a public hearing was received. The tentatively scheduled public hearing was vacated on November 2, 2021. 6. Hilcorp's application for revision provided sufficient information upon which to make an informed decision on its request. PURPOSE AND NEED FOR THIS ORDER: Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055 (referred to as statewide spacing requirements), and operators must abide by those limits unless they apply for, and obtain, an exception to those limits. CO 798 November 9, 2021 Page 2 of 3 Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas and that both the rights of adjacent landowners and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS: 1. Hilcorp is operator for the onshore HVB-15 well (Permit to Drill No. 212-132) located within Kenai Peninsula Borough, on the east side of the Cook Inlet Basin, Alaska. It was drilled to a total depth of 9,554' measured depth (MD) in 2012. Surface Location: 2,328' FNL, 336' FEL, Section 21, T02S, R13W, S.M. Top of Productive Horizon (TPH) Location: 2,049' FSL, 427' FEL, Section 21, T02S, R13W, S.M. Bottom Hole Location: 842' FSL, 853' FEL, Section 21, T02S, R13W, S.M. 2. HVB-15 lies entirely within Cook Inlet Region, Inc. (CIRI) Lease C-61589. Hilcorp owns 100% working interest in the lease and in the Deep Creek Field. The State of Alaska owns 100% of the mineral interest in one State Lease (ADL 384380) within the field, and CIRI owns 100% of the mineral interest in the remaining three leases (C-061588, C-061589, and C-061590). All lands and leases within Deep Creek Field are committed and subject to the Deep Creek Unit Agreement. Hilcorp is operator for the lease C-061589 and the unit. 3. The Deep Creek Field is presently governed by pool rules established under Conservation Order 553A (CO 553A), which define the Deep Creek Happy Valley Beluga/Tyonek Gas Pool and establish well -spacing requirements for that pool. Potentially gas -bearing sands within the overlying Sterling Formation, the subject of Hilcorp's application, are not addressed in CO 553A. The default statewide spacing rules apply to undefined Sterling reservoirs. 4. All past production from the HVB-15 well has been from gas reservoirs within the Tertiary -aged Beluga and Tyonek Formations (listed in descending stratigraphic order). The requested new production will be assigned to Deep Creek Undefined Sterling Gas Pool. A commingling request is also required and has been filed separately with AOGCC as Docket No. CO -21-019. 5. Pursuant to 20 AAC 25.055(a)(4), an order approving a spacing exception is required to perforate and produce the Sterling Undefined Gas reservoir because HVB-15 will be the second well open to the same pool in governmental Section 21, T02S, R13W, and it will lie within 3,000 feet of one other well which is open to or capable of producing from the same Undefined Sterling Gas Pool. CO 798 November 9, 2021 Page 3 of 3 6. The anticipated top of the Undefined Sterling sands is 1,131' MD. The actual TPH will likely vary from the pre -drilling prognosis, and Hilcorp may choose to test sands above 1,131' MD, if deeper horizons are not productive. 7. HVB-15 targets unproven Sterling gas reserves that cannot be reached by conforming to applicable statewide spacing regulations because of the narrow, discontinuous, and lenticular nature of the reservoir sands and their most prospective locations on the subsurface structure. 8. If operated as required, drilling, testing, completion, and regular production of the HVB-15 well will not cause waste or result in an increased risk of fluid movement into freshwater. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow perforating, testing and regular production of the Deep Creek Undefined Sterling Gas Pool in the HVB-15 development gas well in order to maximize ultimate resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055 for HVB-15 will not result in waste or jeopardize correlative rights of adjoining or nearby owners, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. NOW THEREFORE IT IS ORDERED: The AOGCC grants Hilcorp's September 30, 2021, application for an exception to the well spacing provisions of 20 AAC 25.055 to allow perforating and regular production of the HVB-15 development gas well within the Deep Creek Sterling Undefined Gas Pool. Hilcorp may proceed and must comply with all applicable laws and all other legal requirements. CIO, DONE at Anchorage, Alaska and dated November 9, 2021. Dgitally signed Digitally signed by rxMuiNu9,xa ey Jessie L. Jessie L ChmlelowsklJeremy �m ,„n Dan by Dan Seamoumwit«zoD.u.oaDate:2021.11Da Chmielowski 11: 11.11.08 11 ;", Price ,ona,za,� $2dmOUftt 14:[2:56-09'00' 14:15:31-10'00'Jeremy M. Price DanielT. Seamount, Jr. Jessie L. ChmielowskiChair, Commissioner Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days atter 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 atter 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 atter 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. Hilcorp Alaska, LLC Application for Spacing Exception Page 5 of 6 EXHIBIT B Mailing List (within 3,000' of wellbore) Application for Spacing Exception Leases Landowner (Mineral owner WI Owner Operator ADL 384380 State of Alaska Hilcorp Alaska, LLC Hilcorp Alaska, LLC Department of Natural Resources 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive, Suite 1400 Division of Oil and Gas Anchorage, Alaska 99503 Anchorage, Alaska 99503 550 West 7'h Ave, Ste 1100 Anchor e, Alaska 99501-3563 C-061589 Cook Inlet Region, Inc. Hilcorp Alaska, LLC Hilcorp Alaska, LLC C-061590 Attn: Land 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive, Suite 1400 725 E. Fireweed Lane, Suite 800 Anchorage, Alaska 99503 Anchorage, Alaska 99503 Anchorage, AK 99503 INDEXES From:Salazar, Grace (CED) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Notice of Public Hearing and Comment Period Date:Monday, October 4, 2021 2:45:45 PM Attachments:10-4-21 AOGCC Public Notice for Dockets CO-21-018 and CO-21-019.pdf The Alaska Oil and Gas Conservation Commission (AOGCC) has issued the attached public notice regarding applications filed by Hilcorp Alaska, LLC (Hilcorp) requesting AOGCC to approve 1) a spacing exception to allow regular production of the HVB-15 development gas well within 3,000 feet of another well capable of producing from the same pool in the Deep Creek Undefined Sterling Gas Pool, Deep Creek Unit, Cook Inlet Basin, and 2) the commingling of production from the Beluga/Tyonek Gas Pool and the Undefined Sterling Gas Pool in the HVB-15 well. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov ### ## # # # # d L1F3SdLRdd d,2d d `dR3M.'S3dG3SV3ORd2'S32d!3MS3H03Od d dDG1LOMdG'RF'ddDG1LQdO3NY3RSRdSA'SdSA3d G'RF'dDGd,2d'RdLIR3O\(UDLIdLHHDRRDLIdd'MMOL\3d d'dRM'1DI@d3_13MSDLIdSLd'GGL]d O3@YG.dMOL2Y1SDLIdL4dSC3d$ d23\3GLMH3ISd@'Rd]3GGd]DSADId d93SdL4d,LSA3Od]3GGd1'M'0G3d L4dMOL2Y1DI@d>LHdSA3dR'H3dMLLGdDId SC3d33MdO33Fd#I23;I32d!S3OGDI@d'RdLLGd33MdO33Fd #IDSd#dLLFdIG3Sd'RDId,2ddSA3d1LHHDI@GDI@dL4dMOL2Y1SDLId>LHdSA3d3GY@*"`LI3Fd 'RdLLGd,2dSA3d#I23;I32d!S3OGDI@d'RdLLGdDIdSC3d$ d]3GGd %3GGdRM'1DI@dO3@YG'SDLIRdMOLS31SdSA3dLDGd ,2d@'RdOD@ASRdL4d'2E'13ISdG,2L]I3ORd,2dH'_DHDc3d O3RLYO13dO31L\3Obd0`d3RS'0GDRADI@d237YGSdGDHDSRdLIdAL]d1GLR3dLDGd,2d@'Rd]3GGRd1,d03dSLd3'1AdLSA3Od ,2d SLd MOLM3OV`d GDI3Rd ]A3O3d L]I3ORADMd 1A'I@3Rd A,2Rd "A3R3d GDHDSRd 'O3d R3Sd =OSAd DId dd d M3O'SLORdHYRSd'0D23d0`dSA3d238YGSd]3GGdRM'1DI@dGDHDSRdO39OO32dSLd'RdRS'S3]D23d RM'1DI@dO3NYDO3H3ISRdYIG3RRdSA3`dL0S'DId'Id3_13MSDLIdSLdSCLR3dGDHDSRdGSCLY@Ad3_13MSDLIRdSLdSA3d 237ZGSd]3GGdRM'1DI@dO3NYDO3H3ISRd.3dILSdYIYRY'Gdd1.3?GG`d 3\'GY'S3Rd3'1Ad'MMGD1(UDLId ,2dSbMD1'GG`d@O-TRd SA3HdLIG`d]A3Id'1SY'Gd @3LGL@D1d1LI2DSDLIRd23HLIRSP'S3dSC'SdSA3dMOLMLR32d RY0RYO813dGL1'SDLIdL4d'd]3GGdDRdI313RR'ObdSLdO3'1AdLSC3O]DR3dYIO3'1A)0G3dLDGdLOd@'Rd,2dSA'Sd0LSCd SA3dOD@ASRdL4d'2E'13ISdG,2L]I3ORd,2dYI23O@OLYI2d2ODIFDI@d]'S3Od1,d03dMOLS31S32d Rd'd@3I3O'Gd H(US3Odd2L3RdILSdA'\3d3_S3IRD\3d(YWLODSbdL\3OdRYO6'13dDHM'1SRdRY1Ad'RdILDR3d3HDRRDLIRd LOd1LIRSOY1SDLId L]IALG3d1LHHDI@GDI@dO3@YG'SDLIRd dd d.3dDIdMG'13dSLdMO3\3ISd]'RS3d,2dSLdMOLS31Sd 1LOO3G'SD\3dOD@BSRd M3O'SLORd.3dMOLAD0DS32d>LHdMOL2Y1DI@d>LHdLOdDIE31SDI@dDISLdHLO3dSA,dLI3d MLLGd'dOL1Fd=OH'SDLId]A3O3dLDGd ,2LOd@'RdA'Rd'11YHYG'S32d DIdSA3dR+3d]3GG0LO3d]DSCLYSdSA3d d 'MMOL\DI@dSC3d 2L]IALG3d1LHHDI@GDI@dL4dS]LdLOdHLO3dMLLGRd SdDRdILSdYI1LHHLId=Od'd ]3GGdSLd3I1LYJS3OdHYGSDMG3dMLLGRd IdSA3R3dRDSY'SDLIRdILOH'GG`d,dLM3O'SLOd]DGGd;ORSdMOL2Y13d>LHd SA3d233M3RSdMLLGdDIdSA3d]3GGd YITDGdDSdDRd23MG3S32dSC3IdMGY@dL:dSC'SdMLLGd,2dHL\3dYMdSLdSA3dI3_Sd MLLGd'I2dO3M3'SdSA3dMOL13RRdYITDGd'GGdSA3dMLLGRdA'\3d033Id23MG3S32d !LH3SDH3RdLI3dLOdHLO3dL4dSA3R3d MLLGRdDRdILSdG.@3d3ILY@AdSLd]'OO,TdMOL2Y1SDLKDIE31SDLIdLM3O'SDLIRdLIdDSRdL]Id LOdSC3O3d'O3dLSA3Od O3'RLIRdSLd'GGL]d1LHHDI@G32dMOL2Y1SDLKDIE31SDLId IdSA3R3dDIRS'I13Rd'IdLM3O'SLOd]DGGd'MMG`dSLd SA3dd=Od ,dLO23Od'MMOL\DI@dSA3d2L^ALG3d1LHHDI@GDI@dL4dS]LdLOd HLO3dMLLGRd "A3d dO3\D3]RdSC3d'MMGD1'SDLIdSLd'RRYO3d ]'RS3d]DGGdILSdL11[d,2d'GGdL]I3ORdO313D\3dSA3DOdRA.3d L4dSA3dMOL2Y1SDLId "ADRd ILSD13d 2L3Rd ILSd 1LJS'DId 'GGd SC3d DI=OH'UDLId <G32d 0`d DG1LQd &LYd H'`d L0S'DId HLO3d DI=OH'SDLId'0LYSdSADRd<GDI@d0`d 1LJS'1SDI@dSA3dRd!M31D'GdRRDRS,TdO'13d!'G'c'Od'Sd d dLOd@O'13R'G'c.'G'RF'@L\ "A3ddA'RdS3IS'SD\3G`dR1A32YG32d'd" !#MY0GD1dA3.DI@dLIdSCDRdH'X3Od"### ###\D'd!d"3+Rd "A3d'Y2DLd1'GGDIdDI=OH'SDLIdDRd d d1LI53O3I13ddILd d d d IaLI3d]ALd]DRA3Rd SLdM/D1DM'S3dO3HLS3G`dYRDI@d!d "3+Rd\D23Ld1LI53O3I13d RALYG2d1LIS'1SdRd!'G'c.d'SdG3'RSdS]Ld0YRDI3RRd2'`Rd03=O3dSA3d R1A32YG32dMY0GD1dA3.DI@dSLd O3NY3RSd'IdDI\DS(UDLId=OdSA3d!d"3'HRd From:Cody Terrell To:Boyer, David L (CED) Cc:Salazar, Grace (CED); Davies, Stephen F (CED); Roby, David S (CED) Subject:Re: [EXTERNAL] Thirty Day Notice for a Spacing Exception/Co-mingling Hearing for HVB-15 Date:Friday, October 1, 2021 1:21:37 PM I appreciate the heads up and that is the plan. I believe we will do the work once approvals are in. Sent from my iPhone On Oct 1, 2021, at 1:04 PM, Boyer, David L (CED) <david.boyer2@alaska.gov> wrote: Hi Cody, We received Hilcorp’s request for a spacing exception and comingling hearing for the Deep Creek field HVB-15 well on 09/30/21. We hope to schedule a hearing early in the week of November 8th , as we need at least two Commissioners present and time for the posting in the Anchorage Daily News. In your letter, you mention planning to add perforations on October 30, 2021. Given the logistics of scheduling a hearing, the adding of new perfs and proposed co-mingling will need to be delayed pending approvals from AOGCC. Best regards, Dave Boyer Senior Geologist AOGCC The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. By Grace Salazar at 11:47 am, Sep 30, 2021 Hilcorp Alaska, LLC Application for Spacing Exception Page 2 of 6 The Deep Creek Field is currently governed by pool rules established under Conservation Order 553A ("CO 553A"). Under Rule 1 of CO 553A, the Deep Creek Happy Valley Beluga/Tyonek Gas Pool is defined, however gas sands within the Sterling Formation are not defined and included in the pool rule order. Therefore, statewide spacing rules 20 AAC 25.055(a) are controlling. In relevant part, subsection (a)(4) provide: 20 AAC 25.055(a)(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. The proposed perforations in the HVB-15 Well will be targeting various Sterling sands within the Undefined Sterling Pool. A spacing exception is needed because HVB-15 will be the second well within Section 21, T02S, R13W, S. M., and will be within 3,000' of one (1) other well producing or capable of producing from the same Undefined Sterling, pursuant to 20 AAC 25.055(a)(4). The HVB-15 Well will be within 3,000' of, and in the same governmental section as HVB-14 which is open to or capable of producing from the Undefined Sterling. The TPH in the HVB-15 Well is expected to be encountered at 1,131' MD, being the anticipated top of the Undefined Sterling. The actual depth of the TPH could vary during and/or following adding the perforations. As a result, Hilcorp may test sands above the anticipated TPH if sands below 1,131' MD prove to be unsuccessful (notice to owners and landowners have been mailed accordingly). Discussion The HVB-15 Well was drilled in 2012 to a total depth of 9,554' MD with initial targets in the defined Beluga/Tyonek Gas Pool. The well is currently producing Beluga sands within the Beluga/Tyonek Gas Pool, with hopes to add perforations in the Undefined Sterling (the Undefined Sterling includes all gas zones within the Sterling Formation). Hilcorp plans to commingle production between the Undefined Sterling and defined Beluga/Tyonek Gas Pool. A commingling request is required and has been filed with AOGCC separately from this application. Hilcorp may also perforate and test gas sands above the anticipated TPH within the Undefined Sterling, depending on well test results. The proposed perforations in HVB-15 Well will be targeting discontinuous channel sands in the Undefined Sterling within Deep Creek Field that cannot be produced by wells conforming to applicable spacing restrictions. This spacing exception is necessary to efficiently produce the Undefined Sterling channel belt sands. Geologic analysis suggests that the Undefined Sterling consists of a series of thin, discontinuous, stacked channel sands with a low net -to gross ratio. The channel belt widths are too narrow to yield efficient drainage based on the current spacing for gas wells. Hilcorp Alaska, LLC Application for Spacing Exception Page 3 of 6 Hilcorp owns 100% Working Interest in the Deep Creek Field. The State of Alaska owns 100% of the mineral interest in one (1) State Lease (ADL 384380) within the Deep Creek Field. Cook Inlet Region, Inc. owns 100% of the mineral interest in the remaining three (3) leases (C-061588, C-061589, & C-061590) within the Deep Creek Field. Attached to this application is Exhibit A of the Deep Creek Unit Agreement, which details ownership within the Deep Creek Field. All lands and leases within the Deep Creek Field are committed and subject to the Deep Creek Unit Agreement. Hilcorp believes the correlative rights of all owners, landowners, and operators are protected by the Deep Creek Unit Agreement and its corresponding Participating Areas. As previously stated, Hilcorp anticipates perforating and testing above the anticipated TPH, staying within the Undefined Sterling. Accordingly, to protect the correlative rights of all interested parties, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp's intent to drill the HVB-15 Well has been sent by certified mail to those certain owners, landowners, and operators within 3,000 feet of the entire wellbore (see Exhibit B). A copy of the certified mailing receipts are attached to this application. Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit C, is an affidavit executed by a person acquainted with all pertinent facts of this application and verifying that all facts set forth herein are true. Upon receipt of this application by AOGCC, Hilcorp requests that AOGCC tentatively schedule a public hearing to review Hilcorp's application for a spacing exception for its proposed operations for the HVB-15 Well in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8432. Sincerely, CodyT. errell 7 Landman Hilcorp Alaska, LLC Enclosures: Exhibit A — Map Overview; Exhibit B — Mailing List; Exhibit C — Affidavit; Exhibit B to the Deep Creek Unit Agreement. CC: Grace Salazar, AOGCC (via email) Kevin Pike, DNR (via email) Colleen Miller, CM (via email) Hilcorp Alaska, LLC Application for Spacing Exception Page 4 of 6 EXHIBIT A HVB-15 Map Overview Application for Spacing Exception 'Lap Overview �" 3s� 78Feet HNM-15 Well Application for Spacing Exception Rlaska Slale Plane 2one 4, N D27 I[ihvr[i.ihA. UX MaPDate: 41232021 . D-- y' ;V I; Hilcorp Alaska, LLC Application for Spacing Exception Page 6 of 6 EXHIBIT C Application for Spacing Exception Affidavit VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA DEEP CREEK FIELD HVB-15 I, CODY T. TERRELL, Landman, Hilcorp Alaska, LLC ("Hilcorp"), do hereby verify the following: I am acquainted with Hilcorp's application for a spacing exception submitted to the Alaska Oil and Gas Conservation Commission for the drilling of the HVB-15 Well in the Deep Creek Field, near Happy Valley, Alaska, pursuant to 20 AAC 25.055, and in accordance with 20 AAC 25.055(d). I assert all facts outlined in the above -referenced application are true. I further assert the requested spacing exception is necessary to delineate, drill, and produce natural gas from undefined gas pools in the Deep Creek Field. I have reviewed the mailing list and plat attached to said application and it correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this ay of ke .-j 2021. clwle�l rl_ _r� Cody . Terrell, Landman Hilcorp Alaska, LLC STATE OF ALAKSA ) ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO ANIS SWORN before me this,� day of it �e�- 12021. STATE OF ALASKA NOTARY PUBUC look Alicia G. Showalter qu t''y n. I F%._ fes OCt. 4, 2021 NOTARY PUBLI IN AND FOR THE STATE OF ALSKA My Commission expires: ZL2�