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CO 600
• ~ INDEX CONSERVATION ORDER NO. 600 Various Waivers Wainwright #2 1) ---------------------- Application from BLM 2) December 2, 2004 Notice of Hearing Anchorage daily News and Arctic Sounder, affidavit of mailing, a-mail list, bulk mailing list 3) October 16, 2007 Public Records Request from Susan Harvey 4) October 25, 2007 Transcript CONSERVATION ORDER NO. 600 ORDERS • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF The United States Department of the Interior, Bureau of Land Management for an order granting waivers of the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 to allow the drilling, testing (other than flow testing), and plugging the U.S. Department of the Interior Wainwright No. 2 exploratory gas well. Conservation Order No. 600 Docket No. CO-08-03 Wainwright No. 2 Exploratory Well May 23, 2008 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 23rd day of May, 2008. BY DIRECTION OF THE COMMISSION • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF The United States Department of the Interior, Bureau of Land Management for an order granting waivers of the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 to allow the drilling, testing (other than flow testing), and plugging the U.S. Department of the Interior Wainwright No. 2 exploratory gas well. Conservation Order No. 600 Docket No. CO-08-03 Wainwright No. 2 Exploratory Well May 23, 2008 IT APPEARING THAT: The U.S. Department of the Interior (USDOI), Bureau of Land Management (BLM), by Permit to Drill application No. 207-106, dated July 25, 2007, and undated letters, which were received by the Alaska Oil and Gas Conservation Commission (Commission) on July 31, 2007, requested an order waiving the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 to allow for the drilling, testing (other than flow testing), and plugging the Wainwright No. 2 exploratory gas well (Wainwright No. 2 well). The Commission published notice of opportunity to comment and request a public hearing in the ANCHORAGE DAILY NEWS on September 11, 2007, and THE ARCTIC SOUNDER on September 20, 2007, pursuant to 20 AAC 25.540. One individual requested information related to the application. No comments on the application or requests for a hearing were received. 4, A hearing was held at the Commission's offices, at 333 West Seventh Avenue, Suite 100, Anchorage, Alaska, on October 25, 2007. FINDINGS: Wainwright No. 2 is a vertical coalbed methane exploratory well located near Wainwright, Alaska. The well is 890 feet from the north line and 2,318 feet from the east line of Section 24, Township 15 North, Range 32 West, Umiat Meridian (UM). 2. The Wainwright No. 2 well was drilled before the Commission received or approved BLM's Permit to Drill application No. 207-106, dated July 25, 2007 The Olgoonik Corporation owns the surface estate, and the United States owns the subsurface estate, which BLM administers. The only owners of the subsurface estate within 1,500 feet of the well are the United States and the State of Alaska. Conservation Order 600 • Docket No. CO-08-03 May 23, 2008 Page 2 of 5 4. Under AS 31.05.027, land in the NPR-A is subject to the Commission's authority, and the Commission is aware of no Federal law that preempts the Commission's authority under the Alaska Oil and Gas Conservation Act, AS 31.05, or the Commission's regulations, 20 AAC 25. The Village of Wainwright, Alaska, obtains drinking water from surface water sources according to the Alaska Department of Environmental Conservation, Division of Environmental Health, Drinking Water Program and the Alaska Department of Natural Resources Land Administration System. The sources are located in the NW quarter of the SW quarter of Section 9, T31N, R31 W, UM, which is more than 2-1/2 miles from the Wainwright No. 2 well. The depth of the base of permafrost within the Wainwright No.2 well is expected to be about 1,000 feet. (Because required completion reports have not yet been filed for the Wainwright No. 1 and Wainwright No. 2 wells, the actual depth remains unknown.) If this is the case, subsurface aquifers will not be utilized for drinking water. On May 31, 2007, the Commission received a letter from the Arctic Slope Regional. Corporation (ASRC) stating that the BLM could enter ASRC land to conduct the Wainwright Coal-bed Methane Project, which includes drilling, testing, and plugging the Wainwright No. 2 well. On September 13, 2007, BLM filed a Designation of Operator form, naming the U.S. Geological Survey (USGS) as the operator for the Wainwright No. 2 well. 9. As an agency of the United States, BLM seeks a waiver of the bonding requirements of 20 AAC 25.025 for the drilling of the Wainwright No. 2 well. 10. In drilling the Wainwright No. 2 well, BLM used a rotating drill head, which seals around the drill stem and directs annular mudflow to the pits. When necessary, a rotating head can also function as a diverter. A similar rotating drill head was used successfully at the Franklin Bluffs No. 1 exploratory gas well (AOGCC Permit to Drill No. 205-105). 11. Seismic information obtained near the Wainwright No. 1 and Wainwright No. 2 wells shows no indication of shallow gas. In addition, drilling records and mud log information from the nearest exploration wells (Peard Test Well No. 1 and Tunalik No. 1, located 25 miles to the east-northeast and 34 miles to the southwest, respectively) show no indication of abnormal pressure. 12. The Wainwright No. 2 well was drilled with a portable truck-mounted drilling rig. This equipment has no enclosures where methane could accumulate so as to pose a risk of explosion or fire, or where a methane detector could practicably be located. 13. During the October 25, 2007, hearing, a USGS employee testified that he believed that a Permit to Drill was not necessary for the Wainwright No. 2 well because the well would be used only to test water in the coal seam(s) encountered and not to produce oil or gas. CONCLUSIONS: 1. The Wainwright No. 2well-drilled near Wainwright, Alaska, to explore for coalbed methane-is subject to regulation under the Alaska Oil and Gas Conservation Act, AS 31.05, and the Commission's regulations at, 20 AAC 25. Conservation Order 600 ~ • Docket No. CO-08-03 May 23, 2008 Page 3 of 5 2. BLM, in drilling the Wainwright No. 2 well without first obtaining an approved Permit to Drill, violated AS 31.05.090 and 20 AAC 25.005(a). Prior to drilling the Wainwright No. 2 well, BLM was required under the Alaska Oil and Gas Conservation Act, AS 31.05, to apply for a Permit to Drill and request the waivers that are the subject of BLM's application. 4. The waivers that are the subject of BLM's application are common for nonconventional gas wells in Alaska and routinely granted by the Commission when properly supported and timely applied for by the applicant. The requirements of AS 31.05.030(j)(1)(A) do not apply because the Wainwright No. 2 well will not be used to produce gas from an aquifer that is a source of water for human consumption or agricultural purposes. Commission approval of the waivers that are the subject of BLM's application will conform with 20 AAC 25.505(b), which allows the Commission to issue an order in conformance with 20 AAC 25.540 that prevails over the Commission's general statewide regulations contained in 20 AAC 25. The Wainwright No. 2 well was drilled within 1,500 feet of a properly line where ownership changes, which would require an exception to 20 AAC 25.055(a)(2) to permit the well to be open for test or regular production. Under AS 31.05.170(8) and AS 38.05.965(14), a coalbed methane well is a nonconventional gas well. AS 31.05.030(j)(2)(A) requires the Commission to regulate hydraulic fracturing in such wells to ensure protection of drinking water quality. BLM and USGS have not submitted the information required under 20 AAC 25.070 (pertaining to records and reports) and 20 AAC 25.071 (pertaining to geologic data and logs) with respect to the Wainwright No. 1 and Wainwright No. 2 wells. 10. The Commission accepts the assurance of BLM, as an agency of the United States, that a bond is not necessary to ensure that the Wainwright No. 2 well is drilled, operated, maintained, repaired, and abandoned and the location is cleared in accordance with 20 AAC 25. NOW, THEREFORE, IT IS ORDERED: BLM's application for a waiver of the blowout prevention equipment requirements of 20 AAC 25.035 is hereby granted. BLM's application for a waiver of the wellbore survey requirements of 20 AAC 25.050(a)(2) is hereby granted. BLM's application for a waiver of the well site seismic survey requirements of 20 AAC 25.061(a) is hereby granted. BLM's application for a waiver of the gas detection requirements of 20 AAC 25.066 for drilling, testing (other than flow testing), and plugging the Wainwright No. 2 well is hereby granted. Conservation Order 600 • Docket No. CO-08-03 May 23, 2008 Page 4 of 5 As BLM and USGS are agencies of the federal government, BLM's application to waive the bonding requirements of 20 AAC 25.025 is hereby granted, as long as BLM or USGS remains the operator of the Wainwright No. 2 well. 6. Under 20 AAC 25.055(a)(2), because the Wainwright No. 2 well is within 1,500 feet of a property line where ownership changes, a spacing exception from the Commission is required prior to opening the wellbore to test or regular production. 7. Under AS 30.05.030(j)(2)(A), the Wainwright No. 2 well may not be hydraulically fractured without the Commission's prior approval. 8. Should BLM or USGS in the future drill a well in search of oil or gas within the Commission's jurisdiction without first obtaining a Permit to Drill, the Commission will consider BLM or USGS to be in flagrant violation of the provisions of the Alaska Oil and Gas Conservation Act, 31.05. 9. Under AS 31.05.090(d)(2), in determining whether to approve a Permit to Drill application, the Commission is required to consider whether the applicant is in violation of a provision of AS 31.05, 20 AAC 25, or a Commission order or permit. Accordingly, the Commission may not approve future BLM or USGS Permit to Drill applications unless there is compliance with all applicable laws. 10. By June 23, 2008, the operator shall submit to the Commission the reports and information required by 20 AAC 25.070 and 20 AAC 25.071 for the Wainwright No. 1 and Wainwright No. 2 wells. ENTERED at Anchorage, Alaska, and dated May 23, 2008. ,Y~.- ' ~ -°" Daniel T. Sea~unt, Jr., Chair Alaska Oil ~hd (alas Conservation Commission Gas Conservation Commission Cat y P. oerster, Commissioner Alaska it and Gas Conservation Commission Conservation Order 600 Docket No. CO-08-03 May 23, 2008 Page 5 of 5 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 Commission grants for good cause shown, a person affected by it may file with the Commission 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 ettoneous. The Commission 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 Commission denies reconsideration, upon denial, this order or decision and the denial of re- consideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Com- mission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by in- action, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on re- consideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on re- consideration. As provided in AS 31.05.080(6), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for 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 pe- riod; 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. Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, May 23, 2008 1:23 PM Subject: C0600 (Wainwright #2) Attachments: co600.pdf BCC:'Aleutians East Borough'; 'Anna Raff; Arion, Teri A (DNR); 'Arthur Copoulos'; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol Smyth'; 'Cary Carrigan'; caunderwood@marathonoil.com; 'Charles O'Donnell'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidji '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin ; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; Gould, Greg M (DEC); 'Gregg Nady'; 'gregory micallef; 'gspfoff; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north- slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'marty'r 'Matt Rader'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter'; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; 'Dale Hoffman'; Fridiric Grenier; Joseph Longo; Maurizio Grandi; Tom Gennings; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments: co600.pdf; 5/23/2008 # ~ Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 INDEXES ~ 4 1 ALASKA OIL AND GAS CONSERVATION COMMISSION 2 Before Commissioners: John K. Norman, Chairman Daniel T. Seamount 3 Cathy Foerster 4 In the Matter of the Application by ) 5 U. S. Department of the Interior, ) BUREAU of LAND MANAGEMENT for wavier ) 6 of the bonding requirements of 20 AAC ) 25.025, blowout prevention equipment ) 7 requirements of 20 AAC 25.035, ) wellbore survey requirements of ) 8 20 AAC 25.050(a)(2), well site ) seismic) survey requirements of ) 9 20 AAC 25.061{a), and gas detection ) requirements of 20 AAC 25.066 for ) 10 drilling of Wainwright No. 2 ) exploratory well. ) 11 ) 12 ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska 13 October 25, 2007 14 9:00 o'clock a.m. 15 VOLUME I PUBLIC HEARING 16 BEFORE: John K. Norman, Chairman 17 Daniel T. Seamount, Commissioner Cathy Foerster, Commissioner 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • • TABLE OF CONTENTS Opening remarks by Chairman Norman Steve Davies Art Clark R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 05 12 • 1 2 Tape 1 3 0050 4 5 6 7 81 9' 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I P R O C E E D I N G S (On record - 9:03 a.m.) CHAIRMAN NORMAN: Good morning. I'll call this hearing to order. This is a hearing before the Alaska Oil and Gas Conservation Commission being held at approximately 9:00 o'clock a.m. on the morning of October 25th, 2007. The hearing is being held at the Commission's offices, 333 West Seventh Avenue, Suite 100, Anchorage, Alaska. Present this morning to my right Commissioner Dan Seamount. To my left Commissioner Cathy Foerster. My name is John Norman. A quorum of the Commission is present. If there are any persons present at this hearing that have special needs or may need an accommodation in order to participate in this hearing, if you will let us know and in particular see the Commission's special assistant Jody Colombie, we will do our utmost to accommodate you and allow you to participate. This morning's hearing, as with all hearings before the Commission, will be recorded. Any persons desiring a transcript of the hearing following the proceedings may either contract R & R Court Reporters or the Commission's special assistant and she will facilitate your ability to obtain a transcript. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 • ~ 11 21 3 i 4~'~ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Before we begin I would like to remind any persons present to speak into both microphones on the tables. We are in the process of updating our audio system in the Commission's hearing room, but for the time being we have actually three systems going. The one is for purposes of enabling the Court Reporter to prepare the transcript. The second is for amplification. And then additionally we do have by conference telephone persons who wish to participate remotely on the line. This morning's hearing comes before the Commission upon an application by the Federal Bureau of Land Management for a waiver of certain requirements pertaining to the drilling of a well within Section 24, Township 15 North, Range 32 West. The application seeks waiver of bonding requirements, a waiver of a requirement for blowout prevention equipment, a waiver of the wellbore survey requirement, waiver of well site seismic survey requirement and a waiver of the requirement to have gas detection equipment on the rig. Before I go any further I'll ask if either Commissioner Seamount or Foerster have anything to add. Commissioner Seamount? COMMISSIONER SEAMOUNT: No, I do not. CHAIRMAN NORMAN: Commissioner Foerster? COMMISSIONER FOERSTER: No. CHAIRMAN NORMAN: Very well. Mr. Davies, if you would come forward. Since this particular application appears to be R& R C O U R T R E P O R TER S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • related to a prior application, I think it might be helpful and save some additional questions if you could just give us a chronology of this and particularly how this well which is identified as the Wainwright No. 2 is related to the Wainwright No. 1 which was previously permitted by the Commission. MR. DAVIES: Thank you, Commissioner. My name is Steve Davies. I'm a geologist here on Staff with the Commission. For the record my last name is spelled D-a-v-i-e-s. I'd like to provide background information for today's hearing by briefly outlining the history of Wainwright No. 2 and the necessary waivers. To do that I need to begin with nearby well Wainwright No. 1 which lies on BLM land near the City of Wainwright and near Alaska's northwest coastline. On June 11, 2007 the Commission approved Permit to Drill No. 207-065 for the Wainwright No. 1 well, along with companion Conservation Order No. 582 which approved waivers to the regulations regarding bonding, blowout prevention equipment, wellbore surveying, well site seismic surveying and gas detection. Drilling operations for Wainwright No. 1 began shortly thereafter. Due to mechanical problems the well did not reach the planned total depth so the rig was moved about 40 feet to the northwest and a second, unpermitted well was drilled. That well was subsequently named Wainwright No. 2. Wainwright No. 2 was apparently drilled during July of R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 • • 1 2 3 4 5 6 7', g 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2007. I first became aware of the well on July 23rd, 2007 after it had been drilled, during a phone conversation with Gerald Shearer, a BLM point of contact. During that conversation we discussed that the well should be named and whether or not a Permit to Drill would be required after the fact. On July 24th I sent an e-mail to Gerald Shearer and to Art Clark of the U. S. Geological Survey requesting that BLM submit a Permit to Drill application for the well even though it had already been drilled. On July 31st, 2007 the Commission received the Permit to Drill application for Wainwright No. 2. Request for waivers were included in that application. Because wainwright No. 2 is close to the initial well, has the same design and was drilled for the same purpose, the same waivers approved in Conservation Order No. 582 for Wainwright No. 1 are needed for Wainwright No. 2. These are waivers to the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066. This hearing has been called to discuss these waivers. It's unfortunate that Wainwright No. 1 encountered problems, but it's equally unfortunate that the well was R& R C O U R T R E P O R T E R S 817 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 ~ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 redrilled in a separation location as Wainwright No. 2 without any notification to or approval by the Commission. Regulation 20 AAC 25.005 (a) states; before drilling or redrilling a well or re-entering an abandoned well a person shall submit and obtain the Commission's approval of an application for a Permit to Drill. Further, regulation 20 AAC 25.015(a)(1) governs changes to a program in a Permit to Drill. This regulation states that before drilling operations start the operator shall submit and obtain the Commission's approval of a new application for a Permit to Drill if the proposed surface location is changed. Alaska Statute 31.05.027 states; the authority of the Commission applies to all land in the state lawfully subject to its police powers including land of the United States and land subject to the jurisdiction of the United States. So the regulations are clear, Wainwright No. 2 should not have been drilled without receiving a separate permit to drill from the Commission. The after-the-fact permit to drill is required by Commission regulations and also to properly manage data from both Wainwright wells. I'd like to conclude my remarks by noting that along with a lack of prior approval and waivers for Wainwright No. 2, there are also some reporting deficiencies for wainwright No. 1. A check of Commission records yesterday by our Staff found some records to be lacking. We didn't find well log R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 • ALASKA OIL AND GAS CONSERVATION COMMISSION Before Commissioners: John K. Norman, Chairman Daniel T. Seamount Cathy Foerster In the Matter of the Application by U. S. Department of the Interior, BUREAU of LAND MANAGEMENT for wavier of the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic) survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 for drilling of Wainwright No. 2 exploratory well. ALASKA OIL and GAS CONSERVATION COMMISSION Anchorage, Alaska October 25, 2007 9:00 o'clock a.m. VOLUME I PUBLIC HEARING BEFORE: John K. Norman, Chairman Daniel T. Seamount, Commissioner Cathy Foerster, Commissioner R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 1 2 3 4 5 6 7j 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 I 24 I 25 I ~~ TABLE OF CONTENTS Opening remarks by Chairman Norman Steve Davies Art Clark R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 03 05 12 • • 1 2 3 4 5 61 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 P R O C E E D I N G S Tape 1 0050 (On record - 9:03 a.m.) CHAIRMAN NORMAN: Good morning. I'll call this hearing to order. This is a hearing before the Alaska Oil and Gas Conservation Commission being held at approximately 9:00 o'clock a.m. on the morning of October 25th, 2007. The hearing is being held at the Commission's offices, 333 West Seventh Avenue, Suite 100, Anchorage, Alaska. Present this morning to my right Commissioner Dan Seamount. To my left Commissioner Cathy Foerster. My name is John Norman. A quorum of the Commission is present. If there are any persons present at this hearing that have special needs or may need an accommodation in order to participate in this hearing, if you will let us know and in particular see the Commission's special assistant Jody Colombie, we will do our utmost to accommodate you and allow you to participate. This morning's hearing, as with all hearings before the Commission, will be recorded. Any persons desiring a transcript of the hearing following the proceedings may either contract R & R Court Reporters or the Commission's special assistant and she will facilitate your ability to obtain a transcript. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 3 ~ • 1 2 3 4 5 6~ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Before we begin I would like to remind any persons present to speak into both microphones on the tables. We are in the process of updating our audio system in the Commission's hearing room, but for the time being we have actually three systems going. The one is for purposes of enabling the Court Reporter to prepare the transcript. The second is for amplification. And then additionally we do have by conference telephone persons who wish to participate remotely on the line. This morning's hearing comes before the Commission upon an application by the Federal Bureau of Land Management for a waiver of certain requirements pertaining to the drilling of a well within Section 24, Township 15 North, Range 32 West. The application seeks waiver of bonding requirements, a waiver of a requirement for blowout prevention equipment, a waiver of the wellbore survey requirement, waiver of well site seismic survey requirement and a waiver of the requirement to have gas detection equipment on the rig. Before I go any further I'll ask if either Commissioner Seamount or Foerster have anything to add. Commissioner Seamount? COMMISSIONER SEAMOUNT: No, I do not. CHAIRMAN NORMAN: Commissioner Foerster? COMMISSIONER FOERSTER: No. CHAIRMAN NORMAN: Very well. Mr. Davies, if you would come forward. Since this particular application appears to be R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 4 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 related to a prior application, I think it might be helpful and save some additional questions if you could just give us a chronology of this and particularly how this well which is identified as the Wainwright No. 2 is related to the Wainwright No. 1 which was previously permitted by the Commission. MR. DAVIES: Thank you, Commissioner. My name is Steve Davies. I'm a geologist here on Staff with the Commission. For the record my last name is spelled D-a-v-i-e-s. I'd like to provide background information for today's hearing by briefly outlining the history of Wainwright No. 2 and the necessary waivers. To do that I need to begin with nearby well Wainwright No. 1 which lies on BLM land near the City of Wainwright and near Alaska's northwest coastline. On June 11, 2007 the Commission approved Permit to Drill No. 207-065 for the Wainwright No. 1 well, along with companion Conservation Order No. 582 which approved waivers to the regulations regarding bonding, blowout prevention equipment, wellbore surveying, well site seismic surveying and gas detection. Drilling operations for Wainwright No. 1 began shortly thereafter. Due to mechanical problems the well did not reach the planned total depth so the rig was moved about 40 feet to the northwest and a second, unpermitted well was drilled. That well was subsequently named Wainwright No. 2. Wainwright No. 2 was apparently drilled during July of R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 5 • • 1 2 3 4' 5 6 7' 8~ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2007. I first became aware of the well on July 23rd, 2007 after it had been drilled, during a phone conversation with Gerald Shearer, a BLM point of contact. During that conversation we discussed that the well should be named and whether or not a Permit to Drill would be required after the fact. On July 24th I sent an e-mail to Gerald Shearer and to Art Clark of the U. S. Geological Survey requesting that BLM submit a Permit to Drill application for the well even though it had already been drilled. On July 31st, 2007 the Commission received the Permit to Drill application for Wainwright No. 2. Request for waivers were included in that application. Because Wainwright No. 2 is close to the initial well, has the same design and was drilled for the same purpose, the same waivers approved in Conservation Order No. 582 for Wainwright No. 1 are needed for Wainwright No. 2. These are waivers to the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066. This hearing has been called to discuss these waivers. It's unfortunate that Wainwright No. 1 encountered problems, but it's equally unfortunate that the well was R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 6 • • 1 2 3 4' 511 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 redrilled in a separation location as Wainwright No. 2 without any notification to or approval by the Commission. Regulation 20 AAC 25.005 (a) states; before drilling or redrilling a well or re-entering an abandoned well a person shall submit and obtain the Commission's approval of an application for a Permit to Drill. Further, regulation 20 AAC 25.015(a)(1) governs changes to a program in a Permit to Drill. This regulation states that before drilling operations start the operator shall submit and obtain the Commission's approval of a new application for a Permit to Drill if the proposed surface location is changed. Alaska Statute 31.05.027 states; the authority of the Commission applies to all land in the state lawfully subject to its police powers including land of the United States and land subject to the jurisdiction of the United States. So the regulations are clear, Wainwright No. 2 should not have been drilled without receiving a separate permit to drill from the Commission. The after-the-fact permit to drill is required by Commission regulations and also to properly manage data from both Wainwright wells. I'd like to conclude my remarks by noting that along with a lack of prior approval and waivers for Wainwright No. 2, there are also some reporting deficiencies for Wainwright No. 1. A check of Commission records yesterday by our Staff found some records to be lacking. We didn't find well log R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 7 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 data, well samples or many of the other types of data required by regulation 20 AAC 25.071. Upon approval of the waivers for Wainwright No. 2 and approval of the Permit to Drill for that well this same information must be submitted for Wainwright No. 2. I'd like to close by noting that the approval letter for Wainwright No. 1 Permit to Drill contains the following statement; approval to test and commence regular production is contingent upon issuance of a Conservation Order approving a spacing exception. I'm not sure of the exact status of Wainwright No. 2, but I'm like to remind the BLM that if Wainwright No. 2 lies with 1,500 feet of the shoreline or any other property boundary where ownership or land ownership changes than testing of regular production from that well will also require a separate spacing exception. So in addition to the waivers that we're discussing today, some other topics that we may wish to come to agreement on, drilling without permits, reporting compliance and the need for a spacing exception should the well be tested or produced. I'd be happy to answer any questions that you have at this time. CHAIRMAN NORMAN: Mr. Davies, what is the -- I think I follow the sequence of events here. What is the status of the Wainwright No. 1 well, the original well in which there were R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 8 • • 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 18 19 20 21 22 23 24 25 mechanical difficulties? MR. DAVIES: The well is currently in confidential status, but it was drilled. It did not reach TD and I believe it's still opened and being used to monitor temperatures, if I'm not mistaken. COMMISSIONER FOERSTER: Do we have any reported status of the well so that..... MR. DAVIES: We do have a completion report..... COMMISSIONER FOERSTER: Okay. MR. DAVIES: .....and we do have a very brief operational summary for each..... COMMISSIONER FOERSTER: Okay. MR. DAVIES: .....of the days, um-hum. CHAIRMAN NORMAN: Very well. Commissioner Seamount? COMMISSIONER SEAMOUNT: Well, since the Wainwright No. 2 was drilled within 40 feet of the No. 1 and they're asking for the same waivers, it doesn't seem like -- I mean, it seems to me like that would be a pretty simple decision to make, maybe, but -- and that's the purpose of this hearing, but the other issues that you've brought up, drilling without a permit, spacing exception and things like that, I'd welcome the BLM to explain first of all why the well was drilled with a drilling permit. Of course, if you're not prepared to talk about that now, you'll get ample opportunity in the future. CHAIRMAN NORMAN: Let's see, we still have before us Mr. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 9 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I Davies so we'll finish with him..... COMMISSIONER SEAMOUNT: I have nothing further. CHAIRMAN NORMAN: Commissioner Foerster. COMMISSIONER FOERSTER: I wasn't taking good notes. Would you remind me what was the date that the Wainwright l was spudded on? MR. DAVIES: It was spudded in early June shortly after the Permit to Drill was issued on the 11th. I don't recall the exact spud date. COMMISSIONER FOERSTER: Okay. But the permit was issued on June 11? MR. DAVIES: Yes. COMMISSIONER FOERSTER: Okay. And the Wainwright (indiscernible) 2 was spudded on July 5th, is that what the date was? MR. DAVIES: Approximately. COMMISSIONER FOERSTER: Okay. And so do you have any information telling you what the current status of Wainwright No. 2 is? that? MR. DAVIES: I don't know the exact status of it, but..... COMMISSIONER FOERSTER: But we don't have any reporting of MR. DAVIES: Not yet. COMMISSIONER FOERSTER: Okay. Would we normally? MR. DAVIES: This is a special case because we don't yet R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 10 1 2 3 4 5 6 7 8 9 10 ~ 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 have a Permit to Drill. We haven't issued a Permit to Drill number, therefore it's difficult to fill out the forms, so that's..... COMMISSIONER FOERSTER: Okay. Assuming that the BLM had done things properly then would we by now have the inf-..... MR. DAVIES: Yes. Yes, within 30 days of..... COMMISSIONER FOERSTER: We would know what the well is doing now? MR. DAVIES: Within 30 days of suspension..... COMMISSIONER FOERSTER: Okay. So it will be good for when the BLM folks get up and start to fill in some of the blanks for us so that we would understand the status of the No. 1 well, the status of No. 2 well and I certainly also want to hear the answer to Commissioner Seamount's question, you know, why you drilled the second well without receiving a permit. And that's all I had for you, Mr. Davies. CHAIRMAN NORMAN: Just a final question on right now the principle question before us relates to the waiver, that's..... MR. DAVIES: Correct. CHAIRMAN NORMAN: .....what was noticed up and that's what we will mainly focus on. And on the spacing, this is a well being drilled in search for gas and you mentioned the 1,500 foot spacing..... MR. DAVIES: Yes, within -- a gas well within 1,500 feet of a..... R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 11 ~ • 1 2 3 4 5 6 7 8 9 10 11 ', 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN NORMAN: That's right. MR. DAVIES: .....property line requires a spacing exception to test or produce. CHAIRMAN NORMAN: Very well. I don't -- thank you, that was helpful just to explain the relationship between Wainwright 1 and 2 and I think that will save some questions, so thank you, Mr. Davies. And if you will remain in case there are any further questions I would appreciate it. Is there a representative of the BLM or the USGS here that wishes to say anything. MR. FISH: I think on the phone we have Art Clark (indiscerible - away from microphone)..... CHAIRMAN NORMAN: Mr. Clark, are you able to hear us? MR. CLARK: Fairly well. I'm not catching everything, but I can hear you fairly well, yes. CHAIRMAN NORMAN: If you do need something to be repeated we'll certainly do that. Were you able to hear the recital of events that Mr. Davies presented? MR. CLARK: Yes, I was. CHAIRMAN NORMAN: Okay. Well, perhaps, we could pick up there. First of all, we'll listen to anything you have to say. As Commissioner Seamount observed it does appear that in the first well, which is in immediate proximity to the No. 2, the waivers were previously granted and the file does not reflect any -- this is something that I should observe for the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 12 • • 1 2 3 4 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 record, also. The file does not reflect any objections or protests by any other parties, but is there anything you wish to add concerning the application for the waivers? MR. CLARK: No, I think the waivers more-or-less speak for themselves. It's pretty obvious that the issue here is the drilling of the second well and I can go into the chronology and the thinking and the processes behind that if you'd like for me to? CHAIRMAN NORMAN: Please. MR. CLARK: Okay. I'll just, sort of, start with the chronology and explain what happened. Our initial intent was to core down, continuously core down to a depth of approximately 2,000 feet to intersect all the coal bearing sequence in the (indiscernible) underlying the Village of Wainwright. And we had -- I don't know the exact date, I think, on July -- or excuse me, on June 28th at a depth of 1,613 feet the drill -- the core rod or the core bit got stuck in the bottom of the hole and the drill rod subsequently broke at a depth of approximately 900 feet. So at that point we went into a fishing operation to try to retrieve the rod. We were able to latch onto the rod and we were able to pull out about another 50 feet of rod so now the top of the broken rod was at 950 feet. We were able to latch on again, but we could not retrieve the rod. The bit was literally welded, I think, into the bottom of R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572IFax 274-8982 ANCHORAGE, ALASKA 99501 13 • • 1 2 3 4''~ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the hole. I don't know exactly what happened, but I suspect that we had an interruption in drill mud supply to the bit while coring was going on and the bit literally welded itself into the ground causing the damage to the rod. So we had intersected numerous coals in the permafrost and sub-permafrost at that point. We really wanted to continue going deeper although we were running out of time and money so we were getting close to where we felt the base of the coal bearing sequence was, but we did want to continue drilling if we possibly could. So what we did, before we did anything else, I went ahead and ran a set of geophysical logs in that hole and the geophysical probes were able to literally go right into the broken rod so I was able to get several geophysical logs all the way to the bottom to 1,600 feet. We pulled back and then we decided to try -- once that was done I also did a packer test on the coal at 900 feet which looked like it ended up being frozen. At that point we decided we were going to try to deflect -- put in a deflector wedge and deflect past the top of the broken rod at 950 feet. And the thinking for this was for two reasons. A, we could get by it we wanted to continue drilling to a deeper depth. And, B, if we -- the other thing we wanted to do even if we didn't go deeper, we had intersected a fairly gassy coal at 1,250 feet and we felt it was imperative to get water data R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 14 • ~ 1 2 3 4 5 6 7 8 9 10, 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 because that was the second part of our project was to collect permeability data and water quality from any significant coal that we might have encountered, so those are the two ideas we had in mind. So we spend the next several days -- we had to have some items made for us over at Deadhorse, we had them sent over. We built ourselves a deflection wedge. We cemented it in on top of the broken rod. We tried to drill past that and the bottom line was we couldn't do it. We were -- we could get past the deflection wedge, but we continuously -- the bit kept coming back against the broken rod. We were binding up and it was pretty obvious we were going to break rods again. So at that point I made a snap decision thinking okay, we're not going to go any deeper, but it is imperative that we get this water data. And so I made a unilateral decision at that point and just said, you know, what we're going to move over 40 feet. This is not an oil and gas hole at this point. This is a water hole because all we're going to do is drill down to -- through -- past 1,250 feet. We have seven and a half foot coal (ph) between 1,242 and 1,250 feet. We're not going to take any more core. We're not going to do any more absorbsion (ph). All we're going to do is going to drill an open hole down to 1,2- -- I think we ended up going to 1,270 feet, go down, pack (ph) that off, run a sludge (ph) test on it, a draw-down recovery test just to get permeability data. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 15 • ~ 1 2 3 4'~ 5 6 7 81 i 91~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I We're going to collect a water sample at that point and then we're going to set a temperature monitor well that could be monitored for -- by the University of Alaska in Fairbanks. Moved over 40 feet. We just wanted to go just far enough to where we felt that the holes wouldn't be intersected. Oh, I'm going to back up a little bit. The other thing that I did before we moved over and started drilling the second site, because we wanted the temperature monitor data and because I had made an agreement with the University of Alaska in Fairbanks, I went ahead and set a monitor well in the first hole down to a depth of 950. The reason I did that was I couldn°t be sure that we were going to be able to set the monitor well in the second site and, therefore, it was the old bird in the hand beats two in the bush. I wanted to make sure we at least got that. So we set a monitor well in that, that's -- it's not open to any formation. It is just a PVC (ph) string that is filled with antifreeze. There's drill mud around it. It's now frozen into place and so that's actually the current status of well 1. So we went over, we open hole drilled down to 1,270 feet, were able to isolate the coal bed at 1,250 feet. We did, oh, about a day and a halfs worth of draw down and recovery testing on that. We collected water samples from that. We set a long term temperature monitor well. Again, it's not open to any formation, filled that with antifreeze, plugged around it with R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 16 • ~ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 abandonment (ph) grout and abandoned that, too. So that was the reasoning behind drilling the second well. You know, in retrospect -- I guess my thinking was twofold. One was that this truly is a water well and not a -- and not a -- well, my (indiscernible) I think this is a water well and not a gas well. It's the same project, but we are not collecting any more gas data. We're not collecting any more cores. We are strictly looking for water data at this point. The other point was we were extremely short on time and money at that point. If we had any kind of delays everybody -- we'd already been on -- all personnel had been on site for four weeks, continuous working 12 hour shifts and I knew that if we had any kind of delays at all that we would not be able to collect this data. The data is extremely important as far as any kind of future production tests for this particular coal seam. We knew we had a lot of gas in the coal and we felt it was imperative to get that data, like I said, so I made the snap decision to do it. If there had been any delays we never would have been able to go down and collect that data and so that was my thinking behind it. CHAIRMAN NORMAN: Thank you. Anything more, Mr. Clark? MR. CLARK: Unless there's any questions, that's -- I think that's pretty much it. CHAIRMAN NORMAN: I just will mention, this is not so much R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 17 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a question, but just for future reference. The Commission is prepared to respond very quickly to requests and there are in many instances even an option to obtain oral approval as set forth in the regulations. And I just mention that because of your concern about timing. MR. CLARK: I appreciate that. CHAIRMAN NORMAN: Commissioner Seamount, do you have questions? COMMISSIONER SEAMOUNT: Mr. Clark, did you encounter any free hydrocarbons in the Wainwright No. 2 while you were doing your testing? MR. CLARK: No. COMMISSIONER SEAMOUNT: Okay, thank you, I have no further questions. COMMISSIONER FOERSTER: I have a couple. You viewed it as a water well and you were gathering water data. What was your intention in gathering that water data? What did you intend to use that water data for, water production? MR. CLARK: It is -- when we -- the project as conceived was a two phased project. Phase one was this past year, 2007, in which we'd do basically exploratory drilling where we do a continuous core hole -- well, we collected data to where we can decide whether a potential production test which we call phase two would be warranted. Obviously the first piece of information we need is where R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 18 • ~ 1 2 3 4 5 6 7 8 9 10 11 12 I 13 14 15 16 17 18 19 20 21 22 23 24 is the coal, is there coal. The second piece of information is, is there gas in the coal. And if the answer to the second -- if we do find coal and there's gas in it then there are certain data that needs to be collected so that a production test -- just because there's gas in there doesn't mean you can produce it. So we have to get certain reservoir data, let's say, which is the permeability to where we can design a potential production test which would be phase two, 2008, to actually test the produceability of that gas from the coal. And to also look further into the reservoir to get, you know, lateral extent and those kinds of things to see if it is isolated from other aquifers, so on and so forth. So the draw down recovery test is just a simple, initial test to collect that data. Then the other, once that's done, you have isolated water in your temporary well and then we go down and collect that data as well so that you know ultimately if this does go into production you know the quality of the water that's going to be produced and you can begin to make arrangements or plans for water disposal. COMMISSIONER FOERSTER: Well, would it be fair..... MR. CLARK: So the two pieces of information that we wanted to get were the permeability of this coal seam at 1,250 feet and also the quality of the water from that same coal 2511 seam. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 19 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER FOERSTER: So would it be fair to say that the purpose of the second well was data acquisition for a coal bed methane exploration operation? MR. CLARK: I would say it was -- it would be fair to say that it was to collect data that related to coal bed methane exploration certainly. COMMISSIONER FOERSTER: Okay. My second question..... MR. CLARK: But it wasn't coal bed methane data in and of itself because all that data which is actually absorbing (ph) the gas was collected from the first well. COMMISSIONER FOERSTER: Right. But you weren't gathering water data so that you could plan for water production solely? MR. CLARK: That's co- -- well, that's correct. I mean, (simultaneous speech)..... COMMISSIONER FOERSTER: There -- there was concurrent water production? MR. CLARK: .....water that would be produced would be in relation to coal bed gas production, yes. COMMISSIONER FOERSTER: Exactly. Okay. So my second question did you have any reason to belief that you would not be able to get a quick response from this agency if you called us and asked us for a permit for the second well? MR. CLARK: Well, I guess the question certainly entered my mind. I mean, I knew we had a 30 -- you know, we have to have a 30 day wait. I wouldn't say that that was the only R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 20 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I reason why I didn't do it, but certainly that entered the back of my mind. If we'd had more than a one or two day wait even that long than we would have had to abandon the project and I knew that. COMMISSIONER FOERSTER: So you were aware that you needed our permission, but you thought that by asking you would be delayed in doing what you wanted to do so forgiveness is better than permission, is that what I'm hearing? MR. CLARK: I'm sorry, repeat the question? COMMISSIONER FOERSTER: So you were aware that you needed our permission, but you thought that seeking it could cause a delay and made a decision that forgiveness was better than permission? MR. CLARK: No. No, I was not aware. Because we were collecting water data I really thought that we wouldn't need permission for this particular -- this particular well because there was..... COMMISSIONER FOERSTER: Well, different people have different...... MR. CLARK: .....no gas data being collected..... COMMISSIONER FOERSTER: .....logic trains (ph), that's fine . MR. CLARK: .....during this well. This was a water test well. You know, like you said, it was in -- it was related to a gas project, but it was not a gas well so it was a water data R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 21 • • 1 2 3 4 ~~ 5' 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 collection well. COMMISSIONER FOERSTER: As part of a coal bed methane operation? MR. CLARK: Right, it related to a coal bed methane operation. COMMISSIONER FOERSTER: All right. And are you aware that we have jurisdiction over coal bed methane operations? MR. CLARK: Yes, obviously because we..... COMMISSIONER FOERSTER: Okay, that's all I have. MR. CLARK: .....have to permit through your agency. COMMISSIONER FOERSTER: That's right, you do, thank you. CHAIRMAN NORMAN: Thank you, Mr. Clark. This is John Norman again. The bottom hole location or the places where the wellbore is open, how close is that to another property line? You heard Mr. Davies identify the 1,500 foot requirement that's contained in our regulations and I wanted to get some sense of what the movement of 40 feet, how that effects..... MR. CLARK: I -- honestly I couldn't -- I don't have a map that shows the property boundaries, but I would say -- T -- if we weren't close before we'd not close now. We moved 40 feet to the southwest basically parallel to the coast so it was very, very close to the original well. We were in -- we were in -- we were working in on Olgoonik Corporation property. It's a large storage pad that they have there and that's where both sites were located. Right on the edge of their built pad. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 22 • • 5' 6'' 7' 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN NORMAN: Okay. And I'm assuming that at the coast the normal law would apply and the State of Alaska would have the tide and submerged lands seaward, is that your understanding? MR. CLARK: I can't answer, I'm not sure to be honest. CHAIRMAN NORMAN: Okay, all right. And could you tell me then your future plans with reference to these two wells? I think as Commissioner Seamount indicated the waivers -- having previously granted the waivers on Wainwright No. 1 and the same -- there being no change of conditions, there being no protest or concerns, I think that that would be forthcoming, but what is your plan for the future of these wells? You're monitoring at 950 on the Wainwright 1 and you're monitoring -- is it about..... MR. CLARK: 1,250. CHAIRMAN NORMAN: 1,240 on the 2 and..... MR. CLARK: Right. I would -- for these wells we could -- at this point we could decommission the first one because since we had a deeper one the first one is pretty much redundant. The University of Alaska - Fairbanks has requested that they be allowed to -- access to that for a long term temperature monitor well to be used for their various climate study projects. They've already gone up and run one temperature survey on, I believe, the 18th of September. So that -- that well we would hope to be opened, you know, for quite some time R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 23 • • l 2 i 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 until they no longer needed at which point that would be decommissioned as well, but neither well will be used. Now, we are currently in the process of making plans for a production test for 2008 with -- in conjunction with the North Slope Borough. And -- but neither one of these wells would be used as a monitor well because as I said neither one is screened and opened to any part of the formation so as far as any future plans for -- for production testing or monitoring, neither one of these wells would be used. CHAIRMAN NORMAN: So they then are ready for -- to be plugged and abandoned or are you..... MR. CLARK: Well, the (indiscernible) --..... CHAIRMAN NORMAN: The No. 2..... MR. CLARK: .....hole No. 1 I would say yes, it°s ready to be abandoned because like I said we wouldn't have set -- we would have abandoned hole No. 1 with cement if we had known for sure that we were going to have success in hole No. 2, but because I didn't know at that point we went ahead and did (ph) the first one. We did have success as far as setting the monitor well in hole No. 2 -- hole No. 2 would -- we are looking to have that used -- or the University, the State is looking to use that as a long term temperature monitor well so I would say that one is not ready to be abandoned, but hole No. 1 could be abandoned. CHAIRMAN NORMAN: Sure, okay, I follow that. And in the R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 24 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 order that approved the Wainwright No. 1, in the final order it indicates that it may not be tested for production without separate approval from the Commission presumably to allow us to confirm that it does meet spacing requirements and a similar requirement on the Wainwright No. 2. From what I'm hearing from you would not be inconsistent with your plan as you don't plan any production testing from the Wainwright 2? MR. CLARK: That's correct. CHAIRMAN NORMAN: Okay. COMMISSIONER FOERSTER: I have another question. CHAIRMAN NORMAN: Commissioner Foerster has a question. MR. CLARK: Sure. COMMISSIONER FOERSTER: Is it your intent to abandon the Wainwright No. 1 at your next possible opportunity? MR. CLARK: Well, I guess, I hadn't really thought about it. I mean, we certainly can when we're up there next time. We can easily cement it off, sure. COMMISSIONER FOERSTER: When is your next planned time up there? MR. CLARK: Well, the next planned drilling up there would be if we do a production test in 2008, it would be next summer -- next spring, June, July of next summer. COMMISSIONER FOERSTER: And are you familiar with our plugging requirements and do you intend to follow them? MR. CLARK: Yes. R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 25 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I COMMISSIONER FOERSTER: Okay. MR. CLARK: That's a yes. COMMISSIONER FOERSTER: Okay, thank you. Do you know how many suspended wells BLM has in the State of Alaska? MR. CLARK: Do I know? I do not know. COMMISSIONER FOERSTER: Okay. CHAIRMAN NORMAN: If you'd bear with us for just a moment, Mr. Clark, I'll see if there are any further questions. Commissioner Seamount? COMMISSIONER SEAMOUNT: No (ph). CHAIRMAN NORMAN: Commissioner Foerster..... COMMISSIONER FOERSTER: No. CHAIRMAN NORMAN: Mr. Clark, we do -- we thank you very much for your testimony this morning. And the Chair would add that we regulate the entire oil industry in the State of Alaska and sometimes -- and it's often under circumstances for operators or operating under extreme conditions, financial or otherwise. And the Commission nevertheless expects the law to be followed for protection of correlative rights, for the protection of fresh sources of underground water upon which we administer that program under the oversight of the Federal Environmental Protection Agency. And consequently it's very important, I think, for all of us to set a good example particularly if the State of Alaska's involved in operations or the Federal Government is involved in R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/fax 274-8982 ANCHORAGE, ALASKA 99501 26 • • 1 2 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 operations. We particularly -- we need to take care to make sure we set a good example because we do expect the rest of the industry, including countries for- -- some operators from foreign countries coming into our jurisdiction to follow the letter of the law. And the best way to ensure good compliance, I think, is to make sure that public officials act appropriately and set a good example. So I hope you accept that tail-end comment that I made in a positive way, but that is one reason that it is important that we need to make sure that there is compliance with the regulations. MR. CLARK: And I understand that and I appreciate that. The one thing I do want to say is that it was not our intent ever -- we have tried -- we are not an oil and gas operator as you're well aware. We're not familiar with all of the rules and regulations and various types of processes that the oil and gas operators have to go through. We do something very different. We're much smaller. You know, we're looking at something different which doesn't change anything except I do want to say that we -- we try very hard to follow the rules and regulations and as we have gone through various projects I think we've gotten better and better at doing that. So it's never been our intent not to follow all of the rules and we've done the best we can to do so. And I understand that there are times where, you know, we R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 27 ~ • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I 22 I 23 24 25 don't have, you know, cutting chips (ph) in on time and all that sort of thing or we don't have the geophysical logs put out in a certain format that's required by AOGCC. And it's not that we're being belligerent or obstinant in not providing those things, it's just that we don't have ready access to do these types of things. We feel that the work that we're doing is very, very important and so we continue to try to work through all of this and make sure that each time we have a project things go more smoothly, but we do run into some problems sometimes. We've done all we can and continue to do all we can to try to adhere to the regulations. And, I guess, all I can say is when we do mess up or are a little slow in providing some type of data accept the fact that we're doing the best we can and we really do want to work with AOGCC on making these projects work. COMMISSIONER FOERSTER: Mr. Clark, if you lived in the State of Alaska would you expect the agency that your constitution has regulating the oil business to accept we're going the best we can and we do make mistakes because we're small, but bear with us to be something that we should look their way on? MR. CLARK: I would say this, I would say that if what we're doing is not good enough, because we are doing the best we can, then it°s the AOGCC's perrogative or the State's R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 28 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 I 23 24 25 I perrogative to tell us cease and dessist doing the work that we're doing and we will do that. COMMISSIONER FOERSTER: Good point. CHAIRMAN NORMAN: Good. Again, thank you, Mr. Clark, for explaining your position and how -- where we are right now. I believe that we've -- you've answered that the Commissioners had for you. If you would remain on the line I'm going to ask now if there are any other persons present that wish to speak to this particular matter that's before the Commission. All right. For the record, the Chair sees no one else asking to be recognized. I will now do a final call upon Commissioner Seamount and then Forester to see if they have any remaining questions or comments. COMMISSIONER SEAMOUNT: None. COMMISSIONER FOERSTER: None. CHAIRMAN NORMAN: Very well. Then I thank you all for your participation this morning and I think that that concludes these proceedings. (Recessed - 9:42 a.m.) R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 29 1 C E R T I F I C A T E 2 UNITED STATES OF AMERICA ) )ss. 3 STATE OF ALASKA ) 4 I, Rebecca Nelms, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and Reporter for R & R 5 Court Reporters, Inc., do hereby certify: 6 THAT the annexed and foregoing Public Hearing In the Matter of the Application by U. S. Department of the Interior, 7 BUREAU of LAND MANAGEMENT for wavier of the bonding requirements of 20 AAC 25.025, blowout prevention equipment 8 requirements of 20 AAC 25.035, wellbore survey requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 9 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 for drilling of Wainwright No. 2 exploratory well, was 10 taken by Suzan Olson on the 25th day of October, 2007, commencing at the hour of 9:00 a.m., at the Alaska Oil and Gas 11 Conservation Commission, Anchorage, Alaska; 12 THAT this Hearing Transcript, as heretofore annexed, is a true and correct transcription of the proceedings taken and 13 transcribed by Suzan Olson; 14 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 26th day of October, 2007. 15 16 ~~C,r ~'~~~~ Notary Public in and for Alaska 17 My Commission Expires: 10/10/10 18 19 20 21 22 23 24 25 R& R C O U R T R E P O R T E R S 811 G STREET (907)277-0572/Fax 274-8982 ANCHORAGE, ALASKA 99501 • STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Bureau of Land Management U.S. Department of the Interior well Wainwright No. 2. Waiver of various requirements October 25, 2007 at 9:00 am NAME -AFFILIATION ADDRESS/PHONE NUMBER TESTIFY (Yes or No) (PLEASE PRINT) j52-{ Iti. t~cl~a~v~ 222. u:~ ~ ~7~-``. ~~. ~ ~3 ~7~ - ~~ 8.5 4'~s ~- ~• ~~~.s `' 793• /ZZ~ ~ ~S ~3 • j~9 c ~xj ~~~') Z76m7~~Z ' - - - s entdal and/o~ pPryrle9ed. ~trrs fax rs in~'e~tled f~ be Trre infoPrrra~ron cmar~3lT1°d in tni~ fax r~ `a~-f d -_vie~red in3tBally by only the indlvidr~al.n~ r-rQd bentended ram ;pierr~'~yo~~ a~=3he eby rtotfied that atrL in~Rded rscip/err¢ or a representatl~_ of .hz an ravievv, dissernia~at/on o~ cmpy/n9 of 'his fax o9 ttre Ir~forrnati~n coy ¢at~~ 'd a~n~ r b~ y 9~ror, pl_as_ i:rreraediately rro. fy oro/r%bi~d. ff y~~ have racsived this fax r, . is fax to the sar7da~ a` the above address. T3~ank yon. n th /gone acrd recur tale Y~\Jt/U max ~~ '~ ~ uSC~ Yl - S~~_~~\~-. Gate: ~ V ' l l~ r t~tTt : 0 Phone #~ - Pages ('sn~tutJing L ~~ (~-'fli1~ ~ <' _ [S'Y~ coyer s~+eety: 3ubje~t: ~ 1Aessage :~~. :.~7v ~J ^O` r~Cp~~y? 3;~ Ci'v~ ;r3CJ'3~ J~ -3'<~ 3~ J ~~ ~u ~~~ ; ,.~ .. f if i~r 333ista~'~~:° 3" {gp~) X93-923. _ • United States Department of the Interior , -± BUREAU OF LAND MANAGEMENT ~~` Alaska State Office NAMERIGA 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer to: 3160 (940) Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~` Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: I'm writing to request waiving the As Built Survey requirement for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management is going to be drilling this summer and is submitting an Application for Permit to Drill to AOGCC. Sincerely, Beth Maclean Geologist LLM:940:Bmaclean:bm:04/02/07:RM4FOB:907-271-1985:PermittoDri112 teA _ _ T o~ P ENT OF ,~y~ United States Department of the Interior ~ l t 9 i BUREAU OF LAND MANAGEMENT ~~ ~'4ACN 33 +$°9 Alaska State Office ,AMERICA 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http : //www. blm. gov/ak In Reply Refer to: 3160 (940} Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Deaz Mr. Davies: I'm writing to request waiving the bond requirement of 20 AAC 25.025 for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management drilled this summer and is submitting an Application for Permit to Drill. to AOGCC. The Department of the Interior, Bureau of Land Management is self-insured under the Federal Tort Claims Act, 28 USC Sec. 26.71. I understand that in order to waive the bonding requirements AOGCC is required under statute to publish notice. Please let me know when notice has been published. Please advise if any other information is needed by AOGCC in regards to the bonding. Sincerely, ~~~ Beth Maclean Geologist 940:Bmaclean:bm:02/28/07:1448: U:/bmaclean/alternativeenergy/coalbedmethane/perrnitting/wai nwright/aogcclbondingwaiverrequest07_Z.doc • ~~ b~~~~~~, ~~ 9~~~10~3~~ ~~~~, ;~~~) ~i~~~~s3 ~~~C ~~~3~~1~~.i~~3 ~• ;rresl in tf-is fax is >anfidentsai and/or pri~ri~eged. ~tris f~~mi~~~,oa~e iso ~t rhs infmr,:-sa.rarr c3nt3 r3vievvsd irritiadly by only tfgs indivia~~a! narrred below. Tf th° reader of thr~ tea notified that Pfie intsctded n_cipient or a represantativ= of the intended ra~sipier~#, you ar_ hereby fax or t'he infsrrnatdon con~ained herein is any ravievri, diss~ern~na~'ton ar ymP'1;rag' °f ~h9fror, Pi9as= immediately rrotdf/ tars '=radar by orabtibitsd. f~ y~~ fiave receiveai Phis fax i, . telephone arrd return this fax to the s=radar a` t9~$ above 3d~rea~. 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Department of td~e Enteriar, Bureau of Land i~lai;a~;erne~it fc~r are order granting waivers to ~ the bonding reciuire~l~ents of ~0 r~AC' 25.625, } Wai~zwright No. I l~latvgtzt prevention cquipm€:~1t requircrnents of j C;~plaratory t~~'cl1 20 ,4~~' 25.fl35, wellbore survey requiretxients ~ of 20 tLr'1C 25.(t50(a)(2j, well site seismic ~ 1u~e 1 I, 2007 survey reduirements of ?i~ A.aC 25.~J61 f a}, ar~d gas detection rc;quirerrier~ts of 2U 4AC 25.C6b }` to ali~~w the aa•iliinF;, tasting, ancE plugging of the U.S. I3epartmeat of tl~c~ Irxt~rior 4~%atnwr3ght No. 1 e~laloratary gas tivel~ ~~ ! 1 :~.1 T .t~r`i1~L.L tG i l[:~ l 1. q'he C~.S> Dep~-finent Qf tine Interior (`.L~SI)C~I"j, ~3ureat~ of Land I~=t~nagen~eflt ("BLIV~t") by ~L'C1111t to I)ritl Applicatiaiz Na- 2.67-Of 5 dated Febr~axy 27, 2067 and Letter dateeE 1~ebruary 2b, 2€tCt7, ti~~hch were received by the Alastcz~ (Jii and Gas C(1Y2seT'V~tiE?I~ Co1~7~s~is~ion ("C~mmission"} on t'~pril L2, 2f~07, requested an order Gv~ivir~g the bondi~~g requirements of ~Q ,SAC 25.025, blowout preveution equi~i~e~zt r~:c-}tiireinetits oC LQ ?t.~C 25.635, u~ellborc survey rr:quiretr~ents of 2(~ ~~C ?S.QS~~fa~{2~, we11 site seismic suz-ve~,r requirements t~f ZCi A~1C: 25.f)f 1(a), and gas detection.. ruttt~irernertts of• 26 IIAC 25.6t~~ to allow the drilling, testing, ~d F~h~gging i~t ttte ~ainwrigFlt No. 1 eXploratory gas well. ~_ The Ct~tnr~tissit~n prtb3ished notice of o}~poF-tun~ty iOr Bubiic Ite~ring itt the anchorage Daily hews an Iv1ay 1?, 2t~67, pt-rsttanttc~ 2(1 ~r~C 25.541. 3:, No pr=tests to car co~~r~nents cart the applieatir~iZ or ret}uests f~~r a E~~~~~rin2 wer>v received, ~11~'~]-LrGS< ~1,. ~tV:~zmvright N~~. F will be avertical caa~-bed n~ethai~e exploratory tivel4 locates! near the vi3lage of ~Jainwright, 9G0 feet from the north tine and 2278 feet fi-orn the east line of Sec;tivn 24, Towrshig 15 North and LZange 32 ~~est, Urr~iat ivleridian (`UIv1"}. ~, L'he only o~~~ers of the stzhsurface estate within t 500 feet of the w~;~I arc €JSll~I and. tl~~ rllds!~ <~ L~efsaz-tznestE czf Nat~~ral Resources (`` ~hl:~Nf~."~). A~ Corrsei~uat~or~ Qcder ~&2 June 1 t- 2rJJ7 Pad z 2 cat 2 Thy: Village of ~YJain~~-right obtains its drinkingwater from sur-fa~:e ti~~atersE~ta`~es according to the Alaska llepartment of >/nvironmeiltal C.ansert~ation, I?ivision of lnvii~ont~Zental Health, Drinking Water I'rogran~ attd the Alaska Departrnen[ of FIatural Resouree~ Land ~~.c~mini~tratic~n System, The sc~~ir~c:s a~~e located in the NVb' quarter of the S W cl~iarter of Section 9, `I'31 N, R31 W, Ui~~l, which is ~noz-e than. 2-I/2 miles frc~n~ the proposed kvcli location. 4,, The c~pect~cl depth o~ the base cif pei~~nafrost withi~i Wainwright Na.i is ab©ut I,G~O feet; sc~, it is txnlilcely that any subsur#ace aclt~il~ers will 6e utilifed far drinking water p~rrposes. SM fin Ivfa~ 3i, 207, the Comiilissicin recei~~etl 4i Iett~r trorn the ArcticSlope Regional Co~poratie~n ("t'~SRC"} statinl; tlt~t the LJSDOI, U.S. Geological Snt°v~y ("USGS''~ eo r1d ~t~ter ASI~,C land. to conduct the Wain«~right C`.eal-bed Methane: 3'roj~:ct. Ori .Iune ~, 2{}t}7, E3LIvl tiled a IJesgnatic}n of ~~pcratc~r fe~rm, ~~°hicir names EJS~'r5 as the operator ft~rStctiott 24, Township 15 Nardi anct range 32 West; U~~. "~. ~I~17f~1 is an ag,~:~~c~r of the United States, ~`he ct~eclit of the united States renders a pond uruleeessary forthe t~.fain~vright No. 1 ex~slorator}~ well_ ;~. `l-he yvell will iaz :constructed by set~ing $ds of C-/~3" cc~niluctc~r il~ a 9-7f~" ftale. Tire planned ~-I~~~' hale v~rill he continuously cared tc~ its propc~sec~ iotaEdepEh_ If gas-bearing cord seartis are identified, they ma}~ be Tested- The- well rx~ay be cortl~Eeted with PVt~ casing aid scrEei-~s [c~ a11a.v IQ~z~-tei-rn ,nanif~rit~g car t~stint; of selected coal seanl(s~. ~ rotating drill head u°ill be used_ ~, z-otatinl; head seals around tyre drill stem and clit~ects tl~e ae~ntllar nzud#1aw tc> the. pits. If- gas is eneo ur~ter~~, the r©tating head f~anitions as a diuert~t _ A similar rs~tatiirg head «~as used succ;esshilly at the Franklin 131ut'I`s Na. 1 exploratory bas well {pcrrnit to drill X05-1 O5}, ~> ~Scisniic infoc~n~atian near Wairw fight i~;c~. I .shoes no indication of the p~-esettce cif shallcow gas. In a~fdition; dt~illing records arxd m~td ivg information from thy: nearest exploration wells t~~Peard 1`est ~r'elI Nd. 1 a.-tcI Tunalik No. 1, ?~seate.d ~~ miles to the east-riar-theast and 3~ r€iiles to tire tul~tla~vest, respective.l}~j sh©~v no indication afabnorrnal pr~essrFre. ItI. Wair~r~right Nn. I will >~~ driller{ with apot-table tru~[*-riro~.rrrtec{ drilling, r'ig. Tlzi ecluiprncnt has nc~ enclosures where methane et~uld acctkn~ulate s~affieietttly tf~ pose a risk of c;xplosicr€~ or arc, oz' wl~erG e~ methane; eltectar could practzc~~bl}~ be Icrcated. CONCLUSIONS: d:: Exceptions to the gas detection requirentenis of 217 ~4A(: 23.ObG are n~cessar-y to allc~~v drili~~g„ testing and pluggin;; of the ~`Jairlw~-ight No. I exl~luratury ~;as well. # ~ Can4e~ vaiiurr t?ed~sr >S 3lme 11, Z(}{~~ F~:}ge 3 af`2 2. Grantif~~ excc~tic~ns to bc~~d~~~ requirements, '~loti~'ut~f ?ri~vci~tic~t~ eciuipr~~ct~t ree~r~iruments, wellhore surv~;y requirements, and well site seistr~ic, survey i~equir~naex~ts to allow tl7e drilli~~g, testing and pl>.z~i;ing of toe Wain~uril;ht Ito. explat°atory gas ~,veli is not likely to result in waste of i2yriruca~'i~otls, risE£ Izar~n to nim~an safety ar the el7viroFtment (e.g., from an explc3siunor fre}, ris>ti properly €ib~rd~ning the well, or jeapardizc the correlative runts of persons ouming interests i~~ adjoining oe Heathy tr;~ets of land potentially affected try the pt`opt~svd we11. The ret~tkireanents o~ ~~S 3 L~~.(}3Q(f}~l~(A} do noeapf~Iy. ~;; C.'ummissic~n approval uC tl~e operator's rccftrested ex~rt~ptians conforms ~vitil f~S 31.{JS.C15f}ic j~ 1 ~ and AS 3l.(}5.~6~1{c~{2). NC)t~`, T~{ER~~'ORI~, I'~ IS OIti3ER~:D: ~,. 8~~1's applica€ioc~ .f~~r exceptions to Lhe hc3nditi~ rec}ai~~err_et~ts of 2~ SAC 25.~2~3, i~lotivo~it pz-event~n equiprxtent regttiremcnts of 2d :~,r~C 2.<..~35, ~veltE~ore survLy recluirt;tzlents of ?L~ ~1,~C 25.~~UE a)(~2~, well sits: seisr~zic s~tr~ey requirements oI' 2t) t`~AC ~5.061(a~, and gas dsrtectit3n requirements <~f Z~ r1AC 2~.ftbb for tl~e purpose: o~r dt~illing, testing? and I?l~'g~ina the 4~ainwri~I~t moo. I explorator}~ gas ~~-ell is granted. ~, This ~velk nzay not be hyd~'aulically fractured ur tested fur pr©ductiun ~vil~ottt separate appr«+ral fi~or~r the Commission. ~f)N~~ at ,~T~t~hq~ra~e, ~~I~tskx, at~d elated .Tune t.l,2tt01. ~ - 1 ~ a~ ~ i ~~ ~ r ~ ~~~~ ~ ! i `~ ~, ,.~"°~ •~ ~~ .f~h« , N~rr~, z, ail rf~an z ~~. -'', ~ y `~ ~~:c-~; ttlaska Cal an G~i. ~'u~~~ervation Ccs~n€~~;ssio€~ t , .h~ 4~ ~. r _ ~ _ .-~_...-:.__.:.._ 1 ~r: I _ Y r ~~Tj''SG ~' ~` ~~~` t}~rSI~I ~'. ~JPc'tiriL10.S1~, J1' CC3Yl4l1So4t~1~L} ~~~^,ir`4}i, L.;L1~ A[aska Oil and Gas Cc~ttservatl~m Comtttissir~n ~AS 3 Lf ~.6fit~ gravid¢s that ~G~ithin 20 dir~~s at~cr receipt of wrnterr o~otice of the entry of~u~ order, a persa}i :rtYected by it nra4 life with the Co~tintission an aph]icatiott for rehearn~g, .A re~aest fur reheating ntusC he received b4- 4:~~ Ph1 nn dte ?~w clay fi>pt~wi~tg ' t5t date o] t€te order, ~x ~rext w~r€:ia~ gay if a ho(Sday or «<ee<Sead, ro ire timely tilec4. "hhe Cor:uttissiort shall grutt or refuse the a{tp4icaticiti nr r+,~h~~le or in part within ti} daps. Tire Comntissioar care Muse an aplrlicatiun b}~ Hat actinil on it zviChfn the f~-day' period. rU~ aifecte+l p~rsort Itas ~4 days Cram tfte date the Corrcnussion refu,<e~s the applicaiices cr mails (oe utherwis~ rfis€ribaites~ a» rntter upon rettearira~, hot{t bcirt~ the. fittai order c7Y;he Co~rr~riission, to appeal the decisiaii ict Sugcrier Lcmrt. YJhere a request tilt rehe~arwg is denied by €ror~action at ;Ge Ci53nmissign, the 3Q-clay period for appeal €a S~lpenor Court erns from Ehe ~atc qia a°Erich the r~ aesx is deemed dcni~d(d e.. E0~' da atler the a licatiarr hrr rehet+rin was filed . i Lo% ::Wjd LE~.aAL NOT{CES r`lotice of f'r.rblic tfearing Sl'AT"E Of=ALASKA Alaska Oil and Gas Conservation Commission Re: Application by BLM for waiver of the bond- ing requirements of 20 AAC 25.025, blowvr.R prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(x)(?_), well site seismic survey requirements of 20 AAC 25.061(x), and gas detection requirements of 20 MC 25.066 for drilling of the IJ.S. Department of the Interior well Wainwright No. 2. The U.S. Department of the Interior, Bureau of Land Management ("t31_M") has applied io the Alaska Oil and Gas Conservation Commission ("Commission") tar a permit to drill for the Wainwright No. 2 exploratory well. The BLM drilled Wainwright No. 2 during June and July of 2007. The permit application includes requests for waivers trom: the. bonding requirements of 20 AAC ?_5.025, blowout pre- vention equipment requirements of 2U AAC LEGAL N©TIGES LEGAL N(~TICE~ 25.035, wellbore surveys requirernenis of 20 AAr ?~.^50(x)(2), weA site seismic survey requirements of 20 AAC 25.Ot1(a), and gas detection requirements of 20 AAC 25.066. The well is located near the village of Wainwright, 8901eet from the north line and 2318 feet from the east Gne of Section 24, Township 15 North and Range 32 West, Umiat Meridian. A public hearing on BLM's application has ten- tatively been scheduled for October 25, 2007 x19:00 a.m. at the Commission offices at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. to request that the tentatively scheduled hearing be held, file a written request with the Commission no later than A:30 p.m. on October 8, 2007, H a written request for a hearing is not timely tiled, the Commission may issue an order with- out ahearing. To learn it the Comrnissioh will hold the public hearing, call the Commission's special nssislant, Ms. Jody Colo-nbie, at 907- 793- 1221. In addition, a written protest or written com- ments regarding tite application may be sub- mitted in the Commission al 333 Wesl 7th Avenue, Suite 100, Anchorage, Alaska 99501. Any written protest or comments must be received by 4:30 p.m. nn October 22, ?_007 except that, if tho Conm~-issinn holds x public hearing, a written protest or comments must be received by the conclusion of the October 25, 2007 hearing. if, because of a disability, special accommo- dations may be needed to submit a written protest or comments or attend the public hear- ing, call Ms. Colombie at 907-793-1221 before October 22, 2007. John K. Norman LEGAL NUTIGEs Chairman Publish: September 20, 2007 AO-02814014 (312947 9/20) _ PROPOSAL TO LEASE STATE AIRPORT LAND: The Alaska Department of Transportation & Public Facilities proposes to lease Lot M, Block 1, consisting of approxi- mately 7,Ei00 square leet (nDn-712.19), at Kotzebt.re Airpnrl Ior 4 years. ApplicanL• Crowley Marine Services, Inc. Auq~orized uses: auiation. Annual rent: $855. This is an application tiled under AS 0?_.15.090(c) for a successive lease, which allows the bepxrtrnent to grant the proposed lease without compgr(ition. Written comments. must be received by 4:30 p.m., October 15, 2007, after which the Department will deter- STATE OF ALASKA NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814014 SEE BOTTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Se tember 10 2007 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: o Alaska Newspapers Arctic Sounder 301 Calista Court Suite B ~ Anchorage, AK 99518 September 20, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED tN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchors e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN z ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR msr ua 1 08 02140100 73451 z `i REQUISITIONED BY: DIVISION APPROVAL: 02-902 (Rev. 3/94) ~ Publisher/Original Copies: Department Fiscal, Department, Receiving • • Notice of Public Hearing .STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Application by BLM for waiver of the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 for drilling of the U.S. Department of the Interior well Wainwright No. 2. The U.S. Department of the Interior, Bureau of Land Management ("BLM") has applied to the Alaska Oil and Gas Conservation Commission ("Commission") for a permit to drill for the Wainwright No. 2 exploratory well. The BLM drilled Wainwright No. 2 during June and July of 2007. The permit application includes requests for waivers from: the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066. The well is located near the village of Wainwright, 890 feet from the north line and 2318 feet from the east line of Section 24, Township 15 North and Range 32 West, Umiat Meridian. A public hearing on BLM's application has tentatively been scheduled for October 25, 2007 at 9:00 a.m. at the Commission offices at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, file a written request with the Commission no later than 4:30 p.m. on October 8, 2007. If a written request for a hearing is not timely filed, the Commission may issue an order without a hearing. To learn if the Commission will hold the public hearing, call the Commission's Special Assistant, Ms. Jody Colombie, at 907-793-1221. In addition, a written protest or written comments regarding the application may be submitted to the Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Any written protest or comments must be received by 4:30 p.m. on October 22, 2007 except that, if the Commission holds a public hearing, a written protest or comments must be received by the conclusion of the October 25, 2007 hearing. If, because of a disability, special-~a commodations may be needed to submit a written protest or comments or en e pu lic hearing, call Ms. Colombie at 907-793- 1221 before October 22, 20 . ~ ~ ALASKA NEWSPAPERS INC~~ 301 CALISTA COURT, SUITE B ~, ANCHORAGE, ALASKA 99518-3028 ~ ; . x(907) 272-9830 g(907) 272-9512 ~. ~~~ ~' ,, ~,~. ~~' ®.,.~ AK OIL & GAS CONSERVATION Date: September 21, 2007 ~'% ATTN: JODY COLOMIE CASE/PO~AIO: AO-02814014 '~ INVOICE(S) :90700333251 333 W. 7TH AVE, #100 ~,~ ANCHORAGE, AK 99501 PAPER: ARCTIC SOUNDER .~ AFFIDAVIT OF PUBLICATION UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DIVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED SHARON PULOU WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT SHE IS THE ACCOUNTING ASSISTANT FOR: THE ARCTIC SOUNDER, PUBLISHED AT ANCHORAGE IN SAID DIVISION THREE AND STATE OF ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED IN SAID PUBLICATION ON 9/20/2007 AND THEREAFTER FOR A TOTAL OF 1 CONSECUTIVE ISSUE(S), THE LAST PUBLICATION APPEARING ON 9/20/2007, AND THAT THE RATE CHARGED THEREON IS NOT IN EXCESS OF THE RATE CHARGED TO PRIVATE INDIVIDUALS. ~~ ~ ~~ STAMP ,;_~"~ a,~~~.~4~~~ '~~ ~ ~ ~ !~ ~aa°4e, a c. yra® ~~~$~~~ Y~~~~~~~p~~ ®I a~ ~~ ~~ ~, ~- R `~ A~/a S~'RON PUL~U ACCOUNTING ASSISTANT, ALASKA NEWSPAPERS SUBSCRIBED AND SWORN TO ME ON September 21, 2007 CHRISTINA BITTER MY COMMISSION EXPIRES ON MARCH 24, 2009 • • ALASKA NEWSPAPERS INC. 301 CALISTA COURT, SUITE B ANCHORAGE, ALASKA 99518-3028 x(907) 272-9830 g(907) 272-9512 AK OIL & GAS CONSERVATION Date: September 21, 2007 ATTN: JODY COLOMIE cASErnoiAlo: Ao-o2slaola 333 W. 7TH AVE, #100 INVOICE(S) :90700333251 ANCHORAGE, AK 99501 PAPER: ARCTIC SOUNDER A,FFID~VIT ®F PIJBLIC~TI~N UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DIVISION. BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED SHARON PULOU WHO, BEING FIRST DULY SWORN, ACCORDING TO LAW, SAYS THAT SHE IS THE ACCOUNTING ASSISTANT FOR: THE ARCTIC SOUNDER, PUBLISHED AT ANCHORAGE IN SAID DIVISION THREE AND STATE OF ALASKA AND THAT THE ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WAS PUBLISHED IN SAID PUBLICATION ON 9/20/2007 AND THEREAFTER FOR A TOTAL OF 1 CONSECUTIVE ISSUE(S), THE LAST PUBLICATION APPEARING ON 9/20/2007, AND THAT THE RATE CHARGED THEREON IS NOT IN~XC~S O~TH~RATE CHARGED TO PRIVATE INDIVIDUALS. ~ ~ , STAMP °~q~e~ ~~~csuaye ~,+~`~°~~~~ .a +sa~3~~~aid ~~ ~~~ ~; °°s, s,,.. °,,,;~,P.°~~ ~, e ACCOUNTING~ASSISTANT, ALASKA NEWSPAPERS SUBSCRIBED AND SWORN TO ME ON September 21, 2007 ~~ ~ ~~ CHRISTINA BITTER MY COMMISSION EXPIRES ON MARCH 24, 2009 STATE OF ALASKA ADVERTISING ORDER SEE BOTTOM FOR INVOICE ADDRESS AO. FRNi INVOICE MUST QE IN TRIPLICATE SHOWING ADVERTISING ORDER NO . CERTIFIED AFFIDAVIT OF PUBLICATION IPAR7 2 OF THIS FORM) WITH ATTACHED COPY OF A 0-02814014 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AOCJCC R 333 West 7`I' Avenue. Suite l00 ° Anehnraae_ ~K 995(11 M 907-793-1238 p Alaska Newspapers Arctic Sounder 301 Calista Cotirt. Suite B Anchorage, AK 99518 AGENCY CONTACT I DATE OF A.O. PHONE ~PCN /7.J -1GL.1 ADVERTISEMENT REQUIRED: September 20, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America State of division. ss Before me, the undersigned, a notary public this day personally appeared says that he/she is the Published at in said division _and state of _ and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of _ _.__.,,_2007, and that the rate ~:.harged thereon is not in excess of the rate charged priv LEGAL NOTICES Subscribed and sworn t~ This day of w vtai'y' puviiC fvi Sta tc v My commission expires who, being first duly sworn, according to law, 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey.. requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066. The well is located near the village of Wainwright, 890 feet from the north line and 2318 feet from the east line of Section 24, Township 15 North and Range 32 West, Umiat Meridian. A public hearing on BLM's application has ten- tativelybeen scheduled for October 25, 2007 at 9:00 a.m. at the Commission offices at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, file a written request with the Commission no later than 4:30 p.m. on October 8, 2007. If a written request for a hearing is not timely REMINDER INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVE~'~~stASr_/~^/-^ •., •-.__r A CERTIFif LEGAL NOTICES aTION MUST BE : ^ Notice of Public Hearing A STATE OFALASKA '.. Alaska Oil and Gas Conservation Commission Re: Application by BLM for waiver of the bond- ing requirements of 20 AAC 25,025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a); and gas detection requirements of 20 AAC 25.066 for drilling of the U.S. Department of the Interior well Wainwright No. 2. ' The U.S. Department of the Interior, Bureau of Land Management ("BLM") has applied to the Alaska Oil and Gas Conservation Commission ("Commission") for a permit to drill for the Wainwright No. 2 exploratory well. The BLM drilled Wainwright No. 2 during June and July of 2007. The permit application includes requests' for waivers from: the bonding requirements of 20 AAC 25.025, blowout pre- vention equipment requirements of 20 AAC LEGAL NOTICES hold the public hearing, call the Commission's Special Assistant, Ms. Jody Colombie, at 907- 793-1221. in addition, a written protest or written com- ments regarding the application may be sub- mitted to the Gommission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Any written protest or comments must be received by 4:30 p.m. on October 22, 2007 except that, if the Commission holds a public hearing, a written protest or comments must be received by the conclusion of the October 25, 2007 hearing. If, because of a disability, special accommo- dations may be needed to submit a written protest or comments or attend the public hear- ing, call Ms. Cobmbie at 907-793-1221 before LEGAL NOTICES Chairman Publish: September 20, 2007 AO-02814014 (312947 9/20) PROPOSAL TO LEASE STATE AIRPORT LAND: The Alaska Department of Transportation & Public Facilities proposes to lease Lot M, Block 1, consisting of approxi- mately 7,500 square feet (ADA-71219), at Kotzebue Airport for 4 years. Applicant: Crowley Marine Services, Inc. Authorized uses: aviation. Annual rent: $855. This is an application tiled under AS 02.15.090(c) for a successive lease, which allows the Department to grant the proposed lease without competition. Written comments of 0?-901 (Rev. 3194) Page 2 AO.FRM STATE OF ALASKA ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED TTACHED COPY OF AO-02814014 ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH A ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue. Suite 100 ° Anchorage. AK 99501 PHONE pCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Alaska Newspapers 2007 September 20 , Arctic Sounder 301 Calista Court Suite B THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ~ ITS ENTIRETY ON THE DATES SHOWN. Anchorage, AK 99518 SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2007, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, September 10, 2007 11:37 AM To: 'classifiedlegal@alaskanewspapers.com' Subject: Public Notice Attachments: Wainwright_2_BLM_Waiver_Notice.doc; Arctic Sounder.doc Thank you Page 1 of 1 9/10/2007 r r STATE OF ALASKA = NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ORDER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02814013 SEE BOTTOM FOR INVOICE ADDRESS' F R A~GCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Se tember 10 2007 ° M Anchorage, AK 99501 907-793-1238 PHONE - PCN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News PO Box 149001 Anchora e AK 99514 g ~ September 11, 2007 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement Legal® ^ Display Classif ied ^Other (Specify) SEE ATTACHED SENDiNVOICE IN TRIPLICATE TO AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR oisr ua 1 08 02140100 73451 2 REQUISITI NED Y: /~~ / DIVISION APPROVAL: - ~ ~. 02-902 (Rev. ~/9yl) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM • ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Application by BLM for waiver of the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066 for drilling of the U.S. Department of the Interior well Wainwright No. 2. The U.S. Department of the Interior, Bureau of Land Management ("BLM") has applied to the Alaska Oil and Gas Conservation Commission ("Commission") for a permit to drill for the Wainwright No. 2 exploratory well. The BLM drilled Wainwright No. 2 during June and July of 2007. The permit application includes requests for waivers from: the bonding requirements of 20 AAC 25.025, blowout prevention equipment requirements of 20 AAC 25.035, wellbore surveys requirements of 20 AAC 25.050(a)(2), well site seismic survey requirements of 20 AAC 25.061(a), and gas detection requirements of 20 AAC 25.066. The well is located near the village of Wainwright, 890 feet from the north line and 2318 feet from the east line of Section 24, Township 15 North and Range 32 West, Umiat Meridian. A public hearing on BLM's application has tentatively been scheduled for October 25, 2007 at 9:00 a.m. at the Commission offices at 333 West 7~' Avenue, Suite 100, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, file a written request with the Commission no later than 4:30 p.m. on October 8, 2007. If a written request for a hearing is not timely filed, the Commission may issue an order without a hearing. To learn if the Commission will hold the public hearing, call the Commission's Special Assistant, Ms. Jody Colombie, at 907-793-1221. In addition, a written protest or written comments regarding the application may be submitted to the Commission at 333 West 7~' Avenue, Suite 100, Anchorage, Alaska 99501. Any written protest or comments-must be received by 4:30 p.m. on October 22, 2007 except that, if the Commission holds a public hearing, a written protest or comments must be received by the conclusion of the October 25, 2007 hearing. If, because of a disability, spec jl~a commodations may be needed to submit a written protest or comments or en e pu lic hearing, call Ms. Colombie at 907-793- 1221 before October 22, 20 j Anchorage Daily News 'i13/2°°' Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 332626 09/11/2007 02814013 STOF0330 $222.44 $222.44 $0.00 $0.00 $0.00 $0.00 $0.00 $222.44 STATE OF ALASKA THIRD JUDICIAL DISTRICT Christine Clark, being first duly sworn on oath deposes and says that she is an advertising 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 the above dates 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. SuL~seri'bed and sworn o before this date: O Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ ,. .- • _..~ ,~ .. .. ,., pUBL.-G ., ,,, ~'~J~ ~3CpE1!G5'. Q`"~1~~ 1j~1)~lt)1~~1 Notlce of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission e:Application by BLM for waiver of the bonding re- uirements of 20 AAC 25.025, blowout prevention- quipment requirements of 20 AAC 25.035; Wellbore urveys requirements of20 AAC 25.050(aM2); well site aismic survey requirements of 20 AAC 25.061(a), and 3s detection requirements of 20 A A C 2 5.0 6'S f o r rillingoftheU.S.Departmentofthe Interior well Wainwright No. 2: The U.S. Department of the Interior, Bureau of tantl quests 20 AAi 2007 .r a re- s of re- .f zo of 2 the north line and 2318 feet from the'east line of Sect tion 24, Township 15 North and Range 32 West, Umiat Meridian. A ublic hearingg on BLM's application has tenta- tively been scheduled for October 25, 2007 at 9:00 i a.m: at the Commission offices at 333 West 7th Av- enue, Suite 100, Anchorage, Alaska 99501. Tore- quest that the tentatively scheduled hearing be held, ble a written request wtth the Commission no later than 4:30 p:m. on October 8, 2007. if a written request.for a hearing i5 not timely filed, the Commission may issue an order without a hearing. To learn if the Commission will. hold the public hear- in& call the Commission's SpecialAasistant, Ms. Jody Colombie, at 907-793-122L In addition, a written protest or written comments regarding the application may be submitted to the Commission at 333 West 7th Avenue, Suite 100, An- chorage, Alaska 99501. Any written protest or com- ments must be received by 4:30 p,m. on October 22, 2007 except that, if the Commission holds a ppublic hearinS, a written protest or comments must be re- ceived by the conclusion of the October 25, 200T hearing. If, because of a disability special accommodations may be needed to submit a written protest or com- ; ments or attend the public hearinSg, call Ms. Colombie at•907-793-1221 before October 22, 2007. - John K. Norman Chairman AD-02814013 Publish: September11, 2207 r ~~ ~~. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED WITH ATTACHED COPY OF OF PUB THIS FORM O AO-02814013 ORDER ) AFFIDAVIT LICATION (PART 2 F ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue. Suite 100 Anchorage. AK 9951 PHONE pCN M 907-793-1238 - DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News September 11 2007 , PO Box 149001 A h AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN nc ora e g ~ ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2007, and thereafter for consecutive days, the last publication appearing on the day of 2007, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2007, Notary public for state of My commission expires Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, September 10, 2007 11:36 AM To: Legal Ads Anchorage Daily News Subject: Legal Notice Attachments: Ad Order ADN form.doc; Wainwright_2_BLM_Waiver_Notice.doc 9/10/2007 Mary Jones David McCaleb Mona Dickens XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 John Levorsen Michael Parks Mark Wedman 200 North 3rd Street, #1202 Marple's Business Newsletter Halliburton Boise, ID 83702 117 West Mercer St, Ste 200 6900 Arctic Blvd. Seattle, WA 98119-3960 Anchorage, AK 99502 Baker Oil Tools Schlumberger Ciri 4730 Business Park Blvd., #44 Drilling and Measurements Land Department Anchorage, AK 99503 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99503 Anchorage, AK 99503 Ivan Gillian Jill Schneider Gordon Severson 9649 Musket Bell Cr.#5 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs PO Box 190083 PO Box 39309 PO Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Richard Wagner Refuge Manager 399 West Riverview Avenue PO Box 60868 PO Box 2139 Soldotna, AK 99669-7714 Fairbanks, AK 99706 Soldotna, AK 99669-2139 Cliff Burglin Bernie Karl North Slope Borough PO Box 70131 K&K Recycling Inc. PO Box 69 Fairbanks, AK 99707 PO Box 58055 Barrow, AK 99723 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 \ t Page 1 of 1 Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Monday, September 10, 2007 2:58 PM Subject: Public Notice Wainright #2 Attachments: Wainwright No 2 Public Notice.pdf BCC:McIver, C (DOA); 'Alan Birnbaum <""Alan J Birnbaum "> (alan.birnbaum@alaska.gov) ; 'Aleutians East Borough'; 'Anna Raff ; 'Arthur C Saltmarsh'; 'Arthur Copoulos'; '.Barbara F Fullmer'; 'bbritch'; 'Bill Fowler'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'carol Smyth'; 'Cary Carrigan'; 'Catherine P Foerster'; 'Charles O'Donnell'; 'Chris Brecht'; 'Chris Gay'; 'Christian Gou-Leonhardt'; 'Christine Hansen'; 'Cliff Posey'; 'Cody Rice'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deanna Gamble'; 'Deborah J. Jones'; 'doug_schultze'; 'Evan Harness'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef ; 'gspfoff ; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James B Regg'; 'James M. Ruud'; 'James Scherr'; 'Janet D. Platt'; 'jdarlington'; 'jejones'; 'Jerry McCutcheon'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=Crockett@aoga.org'; 'mail=fours@mtaonline.net'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'many'; 'Matt Rader'; 'mckay'; 'Meghan Powell'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty ; 'rmclean'; 'Robert Campbell'; 'Roger Belman'; 'Rosanne M. Jacobsen'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'stanekj'; 'Stephen F Davies'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Thomas E Maunder'; 'Tim Lawlor'; 'Todd Durkee'; 'Tricia Waggoner'; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier' Attachments: Wainwright No 2 Public Notice.pdf; 9/10/2007 . Page 1 of 1 Colombie, Jody J (DOA) From: Ads, Legal [legalads@adn.com] Sent: Monday, September 10, 2007 12:42 PM To: Colombie, Jody J (DOA) Subject: RE: Legal Notice Attachments: 02814013.pdf; 02814013(2).pdf The following is the confirmation information on your legal notice. Please review and let me know if you have any changes or questions. Account Number: STOF0330 Ad Number: 332612 PO/AO#: 02814013 Run Dates: September 11, 2007 Total Cost Of Notice: $222.44 Christine Clark Anchorage Daily New Classified & Legal Rep. Phone:(907) 257-4421 or 257-4296 Email: legalads@adn.com Fax: (907) 279-8170 -----Original Message----- From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.govJ Sent: Monday, September 10, 2007 11:36 AM To: Ads, Legal Subject: Legal Notice 9/ 10/2007 Page 1 of 1 Colombie, Jody J (DOA) From: Germaine Grant [ggrant@alaskanewspapers.com] Sent: Tuesday, September 11, 2007 3:04 PM To: Colombie, Jody J (DOA) Subject: RE: Public Notice Attachments: AS-SOA-Hearing-9-20.doc Hi Jody. Here is a proof of the ad for you. It will run on 9/20. Thanks! From: Colombie, Jody J (DOA) [mailto:jody.colombie@alaska.gov] Sent: Monday, September 10, 2007 11:37 AM To: Germaine Grant Subject: Public Notice Thank you 9/12/2007 ~k1 ~~ NT pp Q~P '~~ "~-yam United States Department of the Interior ~ •~~ ~ 4' 9 1 BUREAU OF LAND MANAGEMENT `~-` . ~'gRCH 3 ~$°9 . Alaska State Office (NAMERICA 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http://www.blm.gov/ak In Reply Refer to: 3160 (940) Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: I'm writing to request waiving the As Built Survey requirement for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management is going to be drilling this summer and is submitting an Application for Permit to Drill to AOGCC. Sincerely, Yv Beth Maclean Geologist LLM:940:Bmaclean:bm:04/02/07:RM4FOB:907-271-1985:PermittoDri112 • United States Department of the Interior ~ 1 BUREAU OF LAND MANAGEMENT ~~'_. Alaska State Office NAMERiCA 222 West Seventh Avenue, #13 Anchorage, Alaska 99513-7504 http ://www.blm. gov/ak In Reply Refer to: 3160 (940) Mr. Steve Davies Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, Alaska 99501 Dear Mr. Davies: I'm writing to request waiving the bond requirement of 20 AAC 25.025 for the Wainwright #2 well that the Department of the Interior, Bureau of Land Management drilled this summer and is submitting an Application for Permit to Drill. to AOGCC. The Department of the Interior, Bureau of Land Management is self-insured under the Federal Tort Claims Act, 28 USC Sec. 26.71. I understand that in order to waive the bonding requirements AOGCC is required under statute to publish notice. Please let me know when notice has been published. Please advise if any other information is needed by AOGCC in regards to the bonding. Sincerely, ~~. Beth Maclean Geologist 940: Bmaclean:bm:02/2 8/07:1448 : U:/bmacl ean/alternativeenergy/coalbedmethane/permitting/wai nwright/aogcc/bondingwaiverrequest07 2.doc
