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Home My WebLink AboutCO 799Conservation Order 799 Whiskey Gulch 14 1. November 12, 2021 Request for Spacing Exception 2. November 12, 2021 Hilcorp Supplemental Mailouts 3. December 21, 2021 Notice of Public Hearing, Affidavit, and Email List ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(1) and (a)(2) to drill, complete, test, and produce the Whiskey Gulch No. 14 exploratory well within 1,500 feet of property lines where the owner and landowner are not the same on both sides of the lines, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling or capable of producing from the same gas pool, pursuant to 20 AAC 25.055(d). ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Docket Number: CO-21-022 Conservation Order 799 Whiskey Gulch No. 14 Exploration Gas Well Kenai Peninsula Borough, Alaska December 21, 2021 IT APPEARING THAT: 1. By letter dated November 12, 2021, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of 20 AAC 25.055(a)(1),(2), and (d) to drill, complete, test, and produce the Whiskey Gulch No. 14 (WG-14) exploratory well within 1,500 feet of property lines where the owner and landowner are not the same on both sides of the lines, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling or capable of producing from the same gas pool in the Whiskey Gulch Undefined Gas Pool, Whiskey Gulch Prospect, Cook Inlet Basin. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for December 22, 2021. On November 17, 2021, the AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on the AOGCC’s website, electronically transmitted the notice to all persons on the AOGCC’s email distribution list, and mailed printed copies of the notice to all persons on the AOGCC’s mailing distribution list. On November 18, 2021, the AOGCC published the notice in the Anchorage Daily News. CO 799 December 21, 2021 Page 2 of 4 3. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the WG-14 well trajectory and provided the notice, addresses to which the notices were delivered, and certified mail receipts to AOGCC. 4. No comments or objections were received by the AOGCC. 5. No request for a public hearing was received. The tentatively scheduled public hearing was vacated on December 15, 2021. 6. Hilcorp’s application provided sufficient information upon which to make an informed decision on its request. PURPOSE AND NEED FOR THIS ORDER: Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application, and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas and that both the rights of adjacent landowners and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS: 1. Hilcorp is operator for the onshore WG-14 well (Permit to Drill No. 221-102) located within Kenai Peninsula Borough on the east side of the Cook Inlet Basin, Alaska. It is planned to be drilled in late 2021 to a total depth of 8,491’ measured depth (MD), which is equivalent to 7,721’ true vertical depth. Surface Location: X=168350.1’; Y=2128170.8’, Sec. 23, T04S, R15W, S.M. Top Target Horizon: X=168175.6’; Y=2127984.0’, Secs. 23, T04S, R15W, S.M. Bottom Hole Location: X=166130.4’; Y=2125793.3’, Sec. 26, T04S, R15W, S.M. 2. WG-14 lies entirely within Alaska Department of Natural Resources (DNR) Mineral Lease ADL0392666. Hilcorp is the owner and the State of Alaska is the landowner for this lease. CO 799 December 21, 2021 Page 3 of 4 3. Because pool rules have not been established within the Whiskey Gulch field, statewide default spacing rules apply. 4. WG-14 is an exploration well targeting unproven reserves in the Sterling, Beluga, and Tyonek formations within Whiskey Gulch Undefined Gas Pool. 5. Following successful completion of WG-14 well and prior to bringing the well online, Hilcorp intends to apply to DNR to form a Unit and Initial Participating Area (PA). Due to the complexity of land ownership in the Whiskey Gulch field and AOGCC’s obligation to protect correlative rights, production will not be authorized prior to a state-approved PA. A copy of the decision and PA allocation schedule will be provided to AOGCC. No production can occur until AOGCC reviews the PA. 6. Hilcorp proposes to allocate royalties (0.125 royalty rate multiplied by the prevailing value for Cook Inlet gas published by the Alaska Department of Revenue for that quarter) to all leased owners/landowners based on their tract allocation percentages, mineral ownership, and lease royalty shown on the approved PA allocation schedule. Hilcorp will establish and maintain in Alaska, without costs to the non-participating owners/landowners, a single, interest-bearing escrow account for the non-participating owners/landowners, and will provide documentation to AOGCC that the Escrow Account has been established (for more details, see Hilcorp’s public Application for Spacing Exception dated November 12, 2021). As a result, the correlative rights of all affected owners, landowners and operators will be protected by approval of this spacing exception. 7. WG-14 targets unproven gas reserves that cannot be reached by conforming to applicable statewide spacing regulations because of the thin, narrow, discontinuous, and lenticular nature of the stacked channel reservoir sands and their most prospective locations on the subsurface structure. 8. If operated as required, drilling, testing, completion, and regular production of the WG-14 well will not cause waste or result in an increased risk of fluid movement into freshwater. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow drilling, completion, testing, and regular production of the Whiskey Gulch Undefined Gas Pool in the WG-14 exploration gas well in order to maximize ultimate resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055 for WG-14 will not result in waste or jeopardize correlative rights of adjoining or nearby owners, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. CO 799 December 21, 2021 Page 4 of 4 NOW THEREFORE IT IS ORDERED: The AOGCC grants Hilcorp’s November 12, 2021 application for an exception to the well spacing provisions of 20 AAC 25.055 to allow drilling, completion, testing, and regular production of the WG-14 development gas well within the Whiskey Gulch Undefined Gas Pool. Hilcorp may proceed and must comply with all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated December 21, 2021. Jeremy M. Price Daniel T. Seamount, Jr. Commissioner, Chair Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Dan Seamount Digitally signed by Dan Seamount Date: 2021.12.21 12:58:49 -09'00' Jeremy Price Digitally signed by Jeremy Price Date: 2021.12.21 14:05:35 -09'00' AOGCC 333 W 7th Avenue, Anchorage, AK 99501 TO: BERNIE KARL K&K RECLYCLING, INC. PO BOX 58055 FAIRBANKS, AK 99711 Mailed 12/21/21 gs INDEXES Notice of Public Hearing and Comment Period STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket No. CO-21-022 The application of Hilcorp Alaska, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(1) and (a)(2) to drill, complete, test and produce the Whiskey Gulch No. 14 exploratory well within 1,500 feet of property lines where the owner and landowner are not the same on both sides of the lines, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling or capable of producing from the same gas pool. Hilcorp Alaska, LLC, (Hilcorp), by letter dated November 12, 2021, requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(1) and (a)(2) to allow Whiskey Gulch No. 14 well (WG-14) in the Whiskey Gulch Undefined Gas Pool to be drilled, completed, tested, and produced within 1,500 feet of a property line where the owner and landowner are not the same on both sides of the line, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling or capable of producing from the same gas pool. WG-14 Well: Surface Location: X=168350.1’; Y=2128170.8’, Sec. 23, T04S, R15W, Seward Meridian Target Location: X=168175.6’; Y=2127984.0’, Sec. 23, T04S, R15W, Seward Meridian Bottom Hole Location: X=166130.4’; Y=2125793.3’, Sec. 26, T04S, R15W, Seward Meridian Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application, and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas and that both the rights of adjacent landowners and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. This notice does not contain all the information filed by Hilcorp. You may obtain more information about this filing by contacting the AOGCC’s Special Assistant, Grace Salazar, at (907) 793-1221 or grace.salazar@alaska.gov. The AOGCC has scheduled a virtual public hearing on this matter for Wednesday, December 22, 2021, at 10:00 a.m. via MS Teams. The audio call-in information is (907) 202-7104 conference ID no. 586 167 352#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Salazar at least two business days before the scheduled public hearing to request an invitation for the MS Teams. Please note, the hearing will be held if AOGCC receives written request by 4:30 p.m., December 14, 2021. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 or visit the AOGCC Events webpage after December . To comment on Hilcorp’s application, please file your comments by 4:30 p.m., Monday, December 20, 2021, to the AOGCC at 333 West 7th Avenue, Anchorage, AK 99501, or via: Email: aogcc.customer.svc@alaska.gov Fax: (907) 276-7542 Online: State of Alaska Public Notices System (use the “comment” link). Individuals or groups of people with disabilities who require special accommodations to comment or attend the hearing should contact Ms. Salazar at (907) 793-1221, no later than December 15, 2021. //signature on file// Jessie L. Chmielowski Commissioner From:Salazar, Grace (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Conservation Order No. 799 (Hilcorp, Whiskey Gulch No. 14) Date:Tuesday, December 21, 2021 2:21:37 PM Attachments:CO 799.pdf The Alaska Oil and Gas Conservation Commission has issued the attached Conservation Order No. 799, granting Hilcorp Alaska, LLC’s request for an exception to the spacing requirements of 20 AAC 25.055. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov By Grace Salazar at 10:30 am, Nov 12, 2021 November 12, 2021 Jeremy Price, Chair Commissioner Alaska Oil and Gas Conservation Commission 333 West 7a Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Whiskey Gulch No. 14 Exploration Well Whiskey Gulch Prospect near Anchor Point, Alaska Dear Commissioner Price: Hilomp Alaskn, LLC ("Hilcorp'), as sole working interest owner of the affected oil and gas leases, requests permission to drill, test, and produce the Whiskey Gulch No. 14 Well ("WG 14') in the Whiskey Gulch Undefined Gas Pool within 1,500 feet of a property line where the owners and landowners are not the same on both sides of the line, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool, pursuant to 20 AAC 25.055(d). In accordance with 20 AAC 25.005, Hilcorp plans to submit an application for a Permit to Drill to AOGCC, prior to the commencement of drilling WG 14. This well will be drilled from the Whiskey Gulch Pad No. 1, with a spud date planned for December 26, 2021. The well path of WG 14 is located entirely on a State of Alaska Lease (Tract 001A, ADL 392666). In accordance with 20 AAC 25.055(d)(2), a map of the location of WG 14 and its relationship to adjohring properties, along with a tract ownership schedule, are attached to this application (see Exhibit A-1 and A-2). The well's location is further indicated as follows: Surface Location • Tract 001A (100% DNR Mineral Ownership — ADL 392666). 0 100% Olcorp Working Interest. o X: 168350.1'; Y: 2128170.8' o Section 23, T04S, R15W, S.M., AK. Well Path • Tract 001A (100% DNR Mineral Ownership—ADL 392666). 0 100% liilcorp Working Interest. o Sections 23 & 26, T04S, R15 W, S.M., AK. o Top of Productive Horizon (1,500'MD): a X: 168175.6'; Y: 2127984.0' Pmt (AmSox Mch029¢, AK 2902 524 0027 3800 CmW IM DH" suit 1A MN N, AK 99503 Hilcorp Alaska, LLC Fh00•: 9071M7 32 Fm 90]/7)7-8301 FmIl: M"R@hfiwm.mm November 12, 2021 Jeremy Price, Chair Commissioner Alaska Oil and Gas Conservation Commission 333 West 7a Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Whiskey Gulch No. 14 Exploration Well Whiskey Gulch Prospect near Anchor Point, Alaska Dear Commissioner Price: Hilomp Alaskn, LLC ("Hilcorp'), as sole working interest owner of the affected oil and gas leases, requests permission to drill, test, and produce the Whiskey Gulch No. 14 Well ("WG 14') in the Whiskey Gulch Undefined Gas Pool within 1,500 feet of a property line where the owners and landowners are not the same on both sides of the line, and where more than one well will be drilled to and completed in the same pool in the same governmental section, and where a well will be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool, pursuant to 20 AAC 25.055(d). In accordance with 20 AAC 25.005, Hilcorp plans to submit an application for a Permit to Drill to AOGCC, prior to the commencement of drilling WG 14. This well will be drilled from the Whiskey Gulch Pad No. 1, with a spud date planned for December 26, 2021. The well path of WG 14 is located entirely on a State of Alaska Lease (Tract 001A, ADL 392666). In accordance with 20 AAC 25.055(d)(2), a map of the location of WG 14 and its relationship to adjohring properties, along with a tract ownership schedule, are attached to this application (see Exhibit A-1 and A-2). The well's location is further indicated as follows: Surface Location • Tract 001A (100% DNR Mineral Ownership — ADL 392666). 0 100% Olcorp Working Interest. o X: 168350.1'; Y: 2128170.8' o Section 23, T04S, R15W, S.M., AK. Well Path • Tract 001A (100% DNR Mineral Ownership—ADL 392666). 0 100% liilcorp Working Interest. o Sections 23 & 26, T04S, R15 W, S.M., AK. o Top of Productive Horizon (1,500'MD): a X: 168175.6'; Y: 2127984.0' Hilcarp Ala" LLC Application for Spacing Exception Page 2 of S Section 23, T04S, R15 W, S.M., AK. Bottom Hole Location Tract OOIA (100% DNR Mineral Ownership — ADL 392666). 0 100% Hilcorp Working Interest o X: 166130.4'; Y: 2125793.3' o Section 26, T04S, R l5 W, S.M., AK. To date, no Field specific pool Hiles have been established within the Whiskey Gulch Field. Therefore, statewide spacing regulation 20 AAC 25.055(a) is controlling. In relevant part, subsections (a)(2) and (a)(4) provide: • 20 AAC 25.055(a)(2) For a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the fine. • 20 AAC 25.055(a)(4): if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. WG 14 is an exploration well targeting unproven reserves in the Sterling, Beluga, and Tyonek Formations within the Whiskey Gulch Undefined Gas Pool. This spacing exception is necessary because (i) WG 14 will be open to test or regular production of gas in the Whiskey Gulch Undefined Gas Pool within 1,500 feet of a property line where the owners or landowners are not the same on both sides of the line (20 AAC 25.055(a)(2)), and (ii) WG 14 will be open to test or regular production ofgas in the Undefined Gas Pool within the same governmental section and within 3,000' of the Whiskey Gulch No. 1 Well ("WG 01"), which is open to or capable of producing from the same pool (20 AAC 25.055(a)(4)). WG 14 will target unproven gas reserves that cannot be reached by conforming to applicable statewide spacing restrictions. Because this in an exploration well, the TPH in WG 14 is unknown at this time. _ For the purposes of this application, the TPH is indicated at 1,500' MD (notice to owners and landowners have been mailed accordingly). Discussion WG 14 is an exploration well located approximately 2.5 miles north of Anchor Point, Alaska, within an exploration area known as the Whiskey Gulch Prospect, also refereed to as the Whiskey Gulch Field. The Whiskey Gulch Field is located directly north of the Seaview Unit. WG 01 was the first exploration well drilled within the Field, which was completed in July 2021. WG 01 targeted unproven oil and/or gas reserves in the Sterling, Beluga, and Tyonek Formations within the Whiskey Gulch Undefined Oil and Gas Pools Hilcorp Alaska, LLC Application for Spacing Exception Page 3 of 8 and is currently being tested in hopes to discover commercial quantities of oil and/or gas. WG 14 will be the second exploration well drilled by Hilcorp in the Whiskey Gulch Field targeting unproven reserves in the Sterling, Beluga, and Tyonek Formations within the Whiskey Gulch Undefined Gas Pool. The closest producing gas well is a Seaview Unit Well, known as Seaview No. 8, located south of WG 14. There are currently no productive wells within the Whiskey Gulch Field. Hilcorp anticipates that the productive sands in WG 14 are discontinuous channel sands in the Sterling, Beluga, and Tyonek Formations within Whiskey Gulch Undefined Gas Pool that cannot be produced by wells conforming to applicable spacing restrictions. Geologic analysis of drilling data from WG 01 along with data from surrounding fields suggests that the Whiskey Gulch Undefined Gas Pool consists of a series of thin, discontinuous, stacked channel sands with a low net -to gross ratio. The channel belt widths are too narrow to yield efficient drainage based on the current spacing for gas wells. This spacing exception is necessary to efficiently drill, test, and discover new gas within the Whiskey Gulch Undefined Gas Pool channel belt sands. Ililcorp owns 100% Working Interest in the affected oil and gas leases. The State of Alaska owns 100% of the mineral interest in the affected State of Alaska Lease (ADL 392666). The remaining affected tracts are 1000/oprivately owned subsurface. Hilcorp has made and is continuing to make attempts to lease all landowner owners within Whiskey Gulch Prospect. However, there are various landowners who have not yet leased their property to Hilcorp. If a lease bas not yet been obtained it's because either (i) Hilcorp cannot locate or contact the landowner or any surviving heirs, or (ii) the landowner is unwilling to participate in our exploration efforts at this time. Attached to this application is the tract ownership schedule for the effected tracts, which details tract ownership and lease status (Exhibit A-2). Following successful completion of WG 14, and prior to bringing the well online, Hilcorp plans to submit to the Depar aient of Natural Resources, Division of Oil and Gas ("DNR'), an application to form a Unit and Initial Participating Area C'PA!). Ifilcorp understands there are complex ownerships involved in the Whiskey Gulch Field, and AOGCC is tasked with protecting all parties' correlative rights. Hilcorp plans to allocate production in accordance with DNR's Unit and PA decision. Production from WG 14 will commence only when a state approved PA is in place. A copy of the decision and PA allocation schedule will be provided to AOGCC prior to production. Hilemp believes the correlative rights of all owners, landowners, and operators will be protected under the existing oil and gas leases in place and the proposed conditions of this application. Hilcorp proposes to allocate royalties to all leased owners / landowners based on their tract allocation percentage, mineral ownership, and lease royalty shown on the approved PA allocation schedule. Hilcorp will establish and maintain—without cost to the non- participating owners / landowners— a single, interest-bearing escrow account (Escrow Account) for the non -participating owners / landowners. Hilcorp will provide AOGCC with doc anontation sufficient to show that the Escrow Account has been established and maintained in accordance with this spacing exception. For each non -participating owner / Hilcorp Alaska, LLC Appheation for Spaciag Exception Page 4 of 8 landowner in a given parcel withinthe productive area, Hilcorp will deposit in that Escrow Account an amount equal to the total of that ran -participating owner's / landowner's interest percentage (allocation percentage) for those parcels multiplied by the production attributed to those parcels for the previous month multiplied by 0.125 (royalty rate) multiplied by the prevailing value for Cook Inlet gas published for that quarter by the Alaska Department of Revenue under 15 AAC 55.173(b). As a result, the correlative rights of all affected owners, landowners and operators will be protected by approval of this spacing exception. As previously stated, Hilcorp anticipates perforating and testing WG 14 in all potential gas bearing sands withm the Whiskey Gulch Undefined Gas Pool between 1,500' MD— 8,519' MD. In accordance with 20 AAC 25.055(d)(1), a copy of this application was sent via certified mail to all affected owners and landowners within 3,000' of WG 14's entire wellbore (Exhibit B). Copies of the certified mail receipts have also been enclosed. No other affected operators or working interest owners exist In accordance with 20 AAC 25.055(d)(3), an affidavit is attached to this application stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true (Exhibit Q. Should you have any technical questions, please contact Mr. Ben Siks, Senior Geologist, at (907) 777-8388, or you may contact the undersigned at (907) 777-8432. Si(erAelyy ; 4A� Cody T. Terrell, Landman Hilcorp Alaska, LLC Enclosures: Exhibit A-1: Whiskey Gulch No. 14 Well Map Exhibit A-2: Tract Ownership Schedule Exhibit B: Certified Mailing List Exhibit C: Affidavit CC: Owners & Landowners within 3,000' of subject well Hilcorp Alaska, LLC Application for Spacing Fxeeption Page 5 of 8 EXHIBIT A-1 Application for Spacing Exception Whiskey Gulch No. 14 Well Map o Am tem Whiskey Gulch #14 Feet 110,,merw. ru WPO Wp 0r na� Hdcorp Alaska, LLC Application for Spacing Exception Page 6 0£8 E7U"IT A-2 Tract Ownership Schedule Application for Spacing Exception Tact Landowner & Mhaerul Ownership % Working Interest Owner Status Number & Ownership OOIA State of Alaska 100% Hilcorp Alaska,LLC 100% Leased(ADL 392666) 017 Carol D. Bram 5.0% Hilcorp Alaska,LLC 1009/6 Leased Carolyn Ruth Jennings 5.0% Leased Catherine R. Burton 2.5% Leased Estate of John Preston Rucker, Jr. 50910 Leased George Stephen & Nelda Ronnekamp 10% Leased KarenLea Adams 2.5% Leased Marc V. Zimmerman 10% Leased Bobby B. Kimhoff 2,5% Leased David B. Clark 5.0% Unleased Jerry C. Andrews 2.5% Unleased Samuel A.& Jacquelyn Hotchkiss 5% Unleased 024 Estate of Douglas R. Dow 100% Hilcorp Alaska, LLC 100% Leased 030 Nancy K. Diner 100% JMcmp Alaska, LLC 100% Leased 031 John W. & harrier C. Rich 5096 Hilcmp Alaska, LLC 100% Leased Mary E Host 50% Leased 031A University of Alaska Anchorage 1000A Unleased 053 Darcy McBride 100% Hilccrp Alaska, LLC 10096 Leased 170 Davis F.Clemsoo, Jr. and Hilcorp Alaska, LLC 100% Sam H. Clemson 100% Leased Hilemp Alaska, LLC Application for Spacing Exception Page 7 of EXHIBIT B Certified Mailing List Application for Spacing Exception Londk Knkww Mal0ngAddrea - - Unknown Bobby B.Kirchoff(deceased) Carol D. Braun 2795 Watergate Way, Kenai, AK 99611 Carolyn Ruth Jennings, f/k/a Carolyn Ruth Ronnekamp 512 Irma Vlata in, Sklatook, OK 74070-2354 Catherine R. Burton 14616 Tudor Chase Dr., Tampa, FL 33626 Darcy McBride 107 West Avenida Gaulota, San Clements, CA 92672 DeaidB.Clark (deceased) Unknown„ Davis F. Clemson, Jr. and Sara H. Clemson 32045 Selling Highway, Anchor Point, AK 99556 Estate of Douglas R. Doter c/o Nancy K. Doner, 6051 Barry Avenus, Anchorage, AK 99507 Estate of John Preston Rucker, Jr. tyle Russell E. Rucker, 1310 Ckarxe Ct, Ape L Mchorage, AK 99501-5570 George Stephen Ronnelamp and Nelda Ronnekamp 423 Uahom Cir, Sunrise Beach, MO 65079 Jany C. Andrews(dewsed) Unknown John W. a Harriet C. Rich, H/W P.O. Boa 588, Lynderu WA 98264 Karen Use Adams P. O. Bax 56, KeadywlIle, MD 21756 MarcV.2lmmerman 36225 Mere Or, Snickers, AK 99659 MaryE. Host 1455th Avenue, Kalispell, MT 59901 Nancy K. Dover 6051 Barry Avenue, Anchorage, AK 99507 Samuel A. and Jacquelyn Hotchkiss Unknown State of Alaska, Department of Natural Resources 550 West Ah Avenue, Ste. 1100, Anchorage, AK 99501 Univerafty of Alaska Anchorage 1815 Bragaw Street, Suite 101, Anchorage, AK 99508-3438 Hilwrp Alaska, LLC Application for Spacing Exceptive Page 8 of 8 EXHIBFT C Application for Spacing Exception Affidavit VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA WHISKEY GULCH PROSPECT Whiskey Gulch No. 14 Well I, CODY T. TERRELL, Landman, Hilcorp Alaska, LLC ("Hilcorp'), do hereby verify the following: I am acquainted with Hilcorp's application for a spacing exception submitted to the Alaska Oil and Gas Conservation Commission for the drilling of the Whiskey Gulch No. 14 Well in the Whiskey Gulch Prospect, near Anchor Point, Alaska, pursuant to 20 AAC 25.055(d). I assert all facts outlined in the above -referenced application are true. I further assert the requested spacing exception is necessary w explore, drill, and establish new production of natural gas from undefined gas pools in the Whiskey Gulch Prospect I have reviewed the mailing list and plat attached to said application and it correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this I aNy of November, 2021. T -T- Cody T. Terrell, Landman Hilcorp Alaska, LLC STATE OF ALAKSA ) ss THIRD JUDICIAL DISTRICT ) SUBSCRIBED TO AND SWORN before me this I o day of November, 2021. STATE OF ALASKA x'%l� NOTARY PUBLIC NOTARY PUBLIC IN OR Michael W. SUBU THE STATE OF ALSKA My Commission expires: rr�2%20'' W ComNsaiw Fxpkes Feb 29, 2022