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Home My WebLink About166-007lc-ap fro 10Jan95 PLUGGING State of Alaska & LOCATION CLEARANCE REPORT ii i ALASKA OIL & ~AS CONSERVATION COMMISSION PTD, No. , ~ - 6707 Lease Memorandum To File: API No. ~O - {33 -/O~/O-O0 Location . ~e= {~,, ~-~-~! ~ ~ Abnd Date Spud: ~, TD: !~. ~9o , Note casing same, wi, depth, ~t vol, & ~mo~e~u~m. s~ c.~ .... /~ ~ 4~, ~ ~ /~ ~ ~,,, ~{,~ ~ ~ , ,, L~ner: ~ Completed Review the well file, and comment on plugging, well head status, and lOcation clearance - provide loc. clear, code. Plugs: ~p ~ qqS~O ~ ~'~z,-~ · Code Date ~, /--~?a q:/9.~.'~ , Plelll be -d~lle4 ~ yOilr l lllll l lf~ iii this bond Is nc~ ferllnafed. The ~ll hal been llfl~~lll pllilgi~ .i~ lille, dolled. //~ UNITED STATE~-'FIDELITY AND GUARANTY COMPANY FIDELITY AND *uARANTy LIFE ,~SuRANcE COMPANY 1OO WEST HARRISON PLAZA SEATTLE. WASHINGTON 98119 PHONE: 206/285-3636 HARRY L. MASTERS. C.P.C.U. MANAGER State of Alaska Department o£ Natural Resources Division o£ Mines and Minerals 5001 Porcupine Drive Anchorage, Alaska 9950z~ Attention: Oil and Gas Conservation Committee Re: Trinity Canadian Drilling Company, Well Drilling Permit Bond~ Homesteader Unit /~1 CONFER~ FILE; Gentlemen: We are writing at this time to request a release on our Well Drilling Bond in the amoumt of ~510,000.00 dated 5-11-66. Please advise us if our liability may now be t~rminated. Thank you for your assitance. Very truly yours, Karen E. Harris (~rs Bond Department kh Seattle 26 (3~?3) '?~;~° G C. GEOL I'l[~. ~ 1 ENO. I I ~ [ DRAF~ l CONFER: ~ILE: t ARTMENT LAN V oFFIcE OF THE ATTORNEY GENERAL / 360 K STREET -- SUITE 105 ANCHORAGE 99501 Mr. John L. Burke, Jr. Attorney. at Law 1.312-Praetorian Building Dallas, ~exas 75201 August 6, 1.971 Re' Homesteaders Unit #1 l,?ell,' Trinity Canadian Drilling Company, Operator Dear Mr. Burke' In response to your inquiry regarding the captioned Homestead. ers Unit #1 Well, I am enclosir...g a copy of our Oil. and Gas Conservation Statutes and Regulat:ions, wh:i.c]') estab- lish the requirements and procedures for properiy plugging and abandoning an oil or gas well in the State of Alaska. AS 31.05.30(d) provides the genera], authorization for our regulations, and 11 AAC, Sections 2008, 2055, 2059 and ". 2101 through. 2108 are all generally pertinent to your inquiry. ~.1ith reference to your request for speci:F:ic infor- mation concerning the plugging and abandonment of the capt.ioned well, i am enclosing a copy of }4r. Harsha]l's letter to Tr].nity Canadian Drilling Company dated }'4ay 1]., 1967, wherein the State's position witl~ reference to the operator's responsibility for properly plugging and abandoning this well is set forth. Also enclosed is a copy of ?..'tr. Harsh al ]. ' s memorandum . :. " 500.00 to Hr. }lartig dated ?4arch 26, ]968 indica, tin2 that Lhe o4, figure referred to in your letter was on].), an estimate by the Department Finally, I am enclosin.~ a cot~y oF Cha. J. rman Burrel]'s letter dated April 24, 1970, to the 1. ox,,' bidding contractor, Exploration Services Company, Inc., indicating that tl~eJ.r 2nit:i.a] bid of $8,200.00 was unacceptib]e ~n 'that it -.F. ai].ed 'to prov:i, de fox' an essential bridge plug between the interval of 9,000 Feet and 9,200 feet· As reflected bx this correspondence, t]~(.'. State of A!nsl:a a.t all times Considered_ ~rrinitv, Canadian_ I)ri].l. inf~ (]o~m~any.~. resDon- '" szole for insurin~ tl~e proper n].t,o--in.f~- and abandonment o~. open ]'~.o].a which constituted a .}zaza. rd_ot.ts and unznfe conclitJ, on. hrhen the operator fai'led to perform:: "'s p ,-~l~]:i..ty, de~tand, was ma lee upon tt~.e .su, ety,,' United c. d ,~tates Fi elity and Guaranty Company. Mr. John L. Burke, Jr. August 6, 1971 Page 2 Due to the uncertain condition of the hole, the surety was unable to obtain a firm bid for plugging and abandoning the well within the $10,000.00 bond limit. Thereafter, the State of Alaska also attempted to obtain a firm commitment for the plugging and abandoning of this well in accordance with departmental specifications, but was u~able to obtain a commitment within the $10,000.00 limitation. The Department then undertook to negotiate directly with the-low-bidding contractor, Exploration Services Company, Inc., in an at~empt to pare the cost of ~this operation to a bare minimum while still insuring that the operation would be completed in a safe and satisfactory manner. After extensive review by State engineers~ it was agreed that an initial attempt would be made to plug and abandon the well ba. sed upon specifications sub~itted by Exploration Services Company, Inc. under their final bid~of $9,675.00.~ This was done upon~ the understanding that the surety would be given credit for this amoun~ regardless of the success of the operation, and that the State of Alaska would thereafter assume initial respon- sibility for amounts expended in excess of this figure. Upon this basis, the well was finally plugged and abandoned, the operation being performed in accordance with the bare minimal StandarSs required for such an operation. In view of ~he sur.ety's inability t~ obtain a firm bid within its $10,000.00 bond limit, the actual plugging operations were performed pursuant to an agreement directly between the contractor and the State of Alaska. The United States Fidel~ity and Guaranty Company tendered to the State the amount of $9,675.00 which amount was subsequently pai8 to the contractor pursuant to the statement submitted to the Department of Natural Resources, a copy of which is attached hereto. I trust that ~he foregoing will be sufficient to answer your inquiry. However, should you have additional ques- tions concerning ~his ma~%er, do not h~sitate to contact ~his office. I would ask, however, that your future correspondence reflect a copy to the plaintiff in this matter so that we are assured that all parties are equally advised concerning infor- mation in our departmental files. Yours truly, JOHN ATTOR , hn. rqor nan '~nt Attorney JKN' ww ~nclosures ~ cc' Thomas R. Marshall, Jr.~ 'MEMORANDUM TO: [- FROM: State of Alaska DATE : SUBJECT: ~uly 13, 197~ 741-5971 AREA CODE 214 JOHN L. BURKE, .IR. ATTORNEY AT LAW 1312 PRAETORIAN BUILDING DALLAS. TEXAS 75201 JUN 2,9 19'/I Mr Thomas R Marshall, Jr ~lVlS~ON OF O~L AND 6AS ~ · ' ' ANCHORA~B I Executive Secretary / ~ ~ Alaska Oil & Gas Conservation Committe~ s ~" 3001 Porcupine Dr. ~/,~ ~ ~ ~ Anchorage, Alaska 99504 ~ ' _ Ic.me CONFER: Re: }{._~o~mesteaders Unit ~1~ ~ Trinity' Ca~'adi~n Drilling Company Operator Dear Mr. Marhsall, I represent Mrs. Charles P. Critcher. Mrs. Critcher was formerly Mrs. Ralph Rush and she was secretary of Trinity Canadian Drilling Company at the time Homesteaders unit 91 was drilled. Mrs. Critcher has been sued by Unites States Fidelity & Guaranty Company and claims that she individually agreed to indemnify them for $9,675.00 which they paid as surety on-a bond covering the plugging of this well. You may have in your' file a copy of. your letter of November 19, 1970, addressed to Mr. Cliffor S.' Dillard, an attorney with whom I am associated in connection with this case, wherein you advised in response to his letter that the well was prop- erly plugged and abandoned in accordance with the regulations of the Alaska Oil and Gas Comm.~a~ion Committee and that the amount paid'for services performed by the Exploration Services Company Ind. to plug and abandon the well was $9,675.00. The primary purpose of this letter is to seek as much information that I can get Which might be relevant to this case, and we would, of course, pay any expenses involved such as for copies. As to what specific information I need, I first would like to say I would appreciate your sending copies of anything which you deem relevant and otherwise advise me Mr. Thomas R. Marshall, Jr. Page Two 6-24-71 of all facts in connection with plugging this well. For example here in Texas I think a report is required to be filed which would show what was done in connection with plugging the well. Therefore any such reports would be helpful. I do have in the file given me a copy of your letter of April 24, 1967, addressed to Trinity Canadian Drilling Company. I do not have the letter you referred to there of November 3, 1966, from Trinity. Then I have the letter of May 9, 1967, from Trinity by Mr. Johnston to you. That letter said that Trinity Canadian Drilling Company had no authority to plug the well which had been turned over to the owners. I would like to know what your response was or what action was taken in connection with that letter or what your position was in connection with necessity of the owners permission. I also have your letter of April 11, 1968, addressed to Dawson and Martin Insurance Agency. In connection with that letter I must assume that that agency handled the surety bond. What was the main reason that the estimate of $4,500.00 was much lower than the final cost of $9,675.00. Did your department retain ~xploration Services Company Inc.. to plug and abandon the well? Do you have a copy covering the itemization of the labor and materials furnished? Did United States Fidelity & Guaranty Company participate in approving or doing anything about over-seeing the plugging and abandoning the well? Did United States Fidelity & Guaranty Company make payment direct to Exploration Services Company Inc. or to your department who.in turn paid Exploration Services Company Inc. Please advise under your regulations what part, if any, the owners of the well has in determining whether or not a well should be abandoned and p~ugged. Perhaps your regulations specify that the State of Alaska has the power to cause the well to be plugged when it is abandoned but I am concerned about Mr. Johnston's remarks in his letter of May 9, 1967, that Trinity had no authority to plug the well. In otherwords it did not appear from that letter that Trinity was unwilling or unable to plug a well. Normally, would not ~e owner furnish RECE!V,FD DIVISION OF OIL AND GAS ANCHORAOB Mr. Thomas R. Marshall, Jr. Page Three 6-24-71 the bond you required? Did the owners give permission for the well to be plugged and, if so, when? If your file contains some writing showing such permission, please include that as a copy. Also include ~nyy~riting or, if none, please state when the well was plugged. Likewise if you have any records reflecting when the well was abandoned, please include and advise. When was demand made upon United States Fidelity & Guaranty Company to 'pay the $9,675.00 and when did they pay it? While I can certainly appreciate that you would ~not take sides in our dispute, I am sure that you can appreciate the importance to my client and to me in the preparation of her defense in acquiring a knowledge of all the evidence whether documentary or not relating to the facts inquired about in this letter. This is particularly true since all of these events with which we were not directly involved occurred after they happened and before my client realized that she would be consid- ered responsible for the payment of that bill. As stated, any expense incurred will be paid. My client and I will greatly appreciate your time in responding to this letter. Thank you. JLB:h cc: Mrs. Charles P. Critcher Yours very truly , Jr. ~Burk~" DIVISION OF OIL AND GAS ANCHO~G~ 't~: H(anms~'s tlntt tim.. 1 T~t~ ~an OPtTH~ Cm.., (~tor ', i.~ ~ aad ~ Censervatien ~ttee 223-5045 223-6376 CLIFFORD S. DILLARD ATTORNEY AT LAW November 9, 1970 State of _Ajask~ Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Attention: Thomas R. Marshall, Jr. Petroleum Supervisor Gentlemen: Homesteader No. 1 Trinity Canadian Drilling Co P. O. Box 426 DE $oTo, TEXAS lc. I C. ENG I 1 ENG [ 2 .FNG .... 4 5 ENG 1 GEOL .... 2 G[OL 3 GEOL ~'~ DRA'FT SEC '~C~NFER: FILE: You wrote the Trinity Canadian Drilling Company on April 24, 1907, regarding the abandonment of the above mentioned well. Could you ~dvise us if this well has been satisfactorily abandoned, and if so, what was the cost of plugging this well. Sincerely, RD CSD/vlt MAIN OFFICE - POST OFFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 ALASKA OFFICE - POST OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907) 272-2419 TO' STATEMENT State of Alaska Departme~-~'t of Natural Reso.~rces Division of Oil & Gas And U. S. Fidelity & Guranty Company Claims Department 340 Central Building Seattle, Washington 98104 This statement is for services performed by Exploration Services Company in the abandonment of the .Trinity Canadian Drilling. _Company Homesteaders' Well No. 1 as per letter of agreement with the State of Alaska, Department of Natural Resources, Division of Oil and Gas, dated June 11, 1970 and as per proposal to Mr. K. W. Druby of Arctic Adjusters, Inc. and U. S. Fidelity & Guranty Company dated December 1, 1969. The subject well has been abandoned according to instructions from the Division of Oil and Gas and final inspection has been made. TOTAL AMOUNT DUE UNDER THIS AGREEMENT .......... $9,675. O0 B,' C'; Osborn President The subject well was satisfactorily abandoned oa June 19, 1970, according~ to the requirements of the State Division of Oil and Gas. · ~,,: .... "~ ,' ~,. .... ~_ O. K. qilbreth, Jr." / c Acting Director July 1, 1970 . gEITH H. MILLER, GOVERfiOR . ' TRM~~ Mr. B. C. 0sborn Exploration Services Company, Inc. P.0.. Anchorage, Alaska 99~01 RE: Dear Mr. Osborn: OKG KLV .. FILE ~ _ · e' · ~] ,.. · Trinity Canadian Homestead'ers UnityNo. 1 mell EnClosed please find our trust, account check payable to Exploration Services Company, Inc., zn the amount of $9,675.00 as payment in full for services performed as shown on the. attached statement. By carbon copy of this letter, we are advising the bonding company that the well has been plugged and ~abandoned to the satisfaction of the State of Alaska and this corres- pondence should enable all Rattiest_to close their.file on this matter. Very truly yours, Encl. G. KENT ED~,JA~DS / /~o~n ~. u~orman stant Attorney General United States Fidelity and Guaranty Company 0. K. Gz.:.b~..et h Division of 0il and Gas. REC[:IVFD JUL 2- 19/0 DIVISION OF: 0;[ AND GAS Ai'4CHORAGE MAIN OFFICE - POST OFFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 ALASKA OFFICE - POST OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907) 272-2419 S TAT EMENT To' State of Alaska Departmen'~ of Natural Resources Division of 0il & Gas And U. S. Fidelity & Guranty Company Claims Department 340 Central Building Seattle~ Washington 98104 This statemen-6 is for services performed by Exploration Services Company in the abandonment of the Trinity Canadian Drilling _Company. Homesteaders' Well No. 1 as per letter of agreement with the State of Alaska~ Department of Natural Resources~ Division of Oil and Gas, dated June 11~ 1970 and as per proposal to Mr. K. W. Druby of Arctic Adjusters, Inc. and U. S. Fidelity & Guranty Company dated December 1~ 1969. The subject well has been abandoned according to ins%ructions from %he Division of Oil and Gas and final inspection has been made. TOTAL AMOUNT DUE UNDER THIS AGREEMENT ............ $9,675. O0 B-.' C; Osb~rfi President tThe subject well was satisfactorily abandoned on June 19, 1970, according} to the requirements of the State Division of Oil and Gas. ' --R:[C[ VFO · -.JUL .DIVISION OF'OIl AND OAS - ~ ' .-; =, ., ANCHORAGE . . Acting Director MEMO TO: F- FROM: <? State of ~laska DATE : SUBJECT: I,,&A Ofmidfdm · :: . _ EXPLO TION SERVICES CO.,I C. MAIN OFFICE - P~0ST ~FFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 ALASKA OFFICE~PO~T OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907) 272-2419 S TAT EMENT To' State of Alaska Department of Natural Resources Division of Oil & Gas And U. S. Fidelity & Guranty Company Claims Department 340 Central Buildi'ng Sealtle, Washington 98104 This statement is for services performed by Exploration Services Company in the abandonment of the Trinity Canadian Drilling Compa~.y Homesteaders' Well No. I as per letter of agreement with the State of Alaska, Department of Natural Resources~ Division of Oil and Gas, dated June 11, 1970 aud as per proposal to Mr. K. W. Druby of AYctic Adjusters, Inc. and U. S. Fidelity & Guranty Company dated December 1, ].969. The subject well has been abandoned according to instructions from the Division of Oil and Gas and final inspection has been made. TOTAL AHOUNT DUE UNDER THIS AGREEMENT '- ...... $9,675.00 B-,_~~ C..~;~ Osbo-rn ....... President to the requirements o~ ~he "$~ece Di~ts~en e~ Oil and Cae. Director ! ~r. J. L. ~cCarrey A~to~aey a~ La~ 117 V. &thAvenue Ancho:a~eo Alaska De~ t~. licCa~-ey. acco~dam~e ~i2h our prto~ dt$cumsicra regarding of ~e z~J~ ~ell ~ i.s ~ noai[y you t~C f~l ~ubJ~2 ~11 on N~ay J~ 17, 1970. A the S~a~e Dtv~~ oi Oil ad Cas ~ill be preae~a ...:'":..-.::: r.: ':': :., ...... _-: .. Seattle 19 (3-$3) CARBON COPY UNITED STATES FIDELITY AND GUARANTY COMPANY 840 CENTRAL BUILDING SEATTLE, WASH. 98104 Telephone: 206/MAin 2-7772 June 8, 1970 State of Alaska ~pa~taent 'of Law Anehorage, ~ 9~01 Attentions John K. Not.n, Aasietant Attorney ~ne~al Dea~ Mr. Neraaa~ Res Our ~oi~ Our Filet Obligee: 7~ S 13~ State of ~alka Thank you very ~ue~ for retu~n~g the Release, Receipt and Assignment Form sent up to you back on June 2, 1970. ~nolosed ~.~. a draft for the proper ~ount of $9,67% in payment of the abe~ mentioned bended ~bligatton in aeeordanee with our ageee~ent da~ed J~e 2, Igc. Very truly yours, Robert R. Brown Clai~ Department ~ltRB~ht Enclosure ecs ~tate of Alaska - DePartment of Natural Resources - 3001 Porcupine Drive - .~chorage, Alaska 99~0~ ecs Home Office Claims - Fidellty-b'~_rety EXPLORATION SERVICES CO.,INC.. MAIN OFFICE - POST OFFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 H£~ ALASKA OFFICE - POST OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907! 272-2419 TEN~ OKG May 23, 1970 Mr. Homer Burrell, Chairman Alaskan Oil and Gas Conservation Committee 3001Porqupine Drive Anchorage, Alaska, 99504 FILE Dear Homer: I received your letter of April 24, regarding the Homesteader well and have talked to the bonding company since; as you are probably aware, I still don't know what's going on. I would sure like to take this job on in early June, if everyone can get together. I can see that the bonding company doesn't want to give you the advantage of $325 since they appear to be hesitant to send you a check for $10,000 and then let you pay $9,675 out to me, but he did state that they were in agreement to assume the liability up to $10,000 and then the State would assume any liability over $10,000. I would appreciate you letting me know as soon as possible, if I am going to get to do the job and how soon it might be. In other words, I'm ready if you're ready. As you can see right now I'm in Ventura, but I would like to return around the first of the month to Anchorage. Besides that, the King Salmon should be running and the weather should be pretty good by the time I get back. Ve[y,~uly yours, President BCO:cac Very trnly yours, ~mer L. ~rell S~ttle 19 (3-63) CARBON COPY UNITED STATES FIDELITY AND GUARANTY COMPANY 840 CENTRAL BUILDING SEATTLE, WASH. 98104 Telephone: 206/MAin 2-7772 ~y 5, 1970 'HLB TRM OKG KLV HV'"; . ~ FILE ~ttentlcn: John K. Nol~nen~ Asst. Attorney General Dea~ Mx'. ~o~= Res Our Prinelpal~ Trinity Canadian Drilling Claim N~be,~ ?gO0 $13~2 Obligee~ · State of ~lask~ ~elose~ is a letter f~o~ Exploration Services Company, and a ~o.~y of a letter written by the State of ~a~e, ~a~~t of ~a~al Re~ees ~~ in~eates that ~lo~ti~'s p~po$al to plug the a~v~pti~ed w~l Is ~aee~teble to the ~tate. You will also ~te ~t the ~e lette~ w~tt~ by ~loration ~ees Co~a~ Inc. al~ ~eates they would be able to ly wi~ the State ~uest of an ad~tional plug et ~,~ ee2, however~::~t ~d ~st an additional $1,3~%.00. Since ~s p~pos~l ~ or may not be aee~table to the Stete~ we '~~e~t that ~.~u ~k ~t s~e a~ramg~t with either lo~ation Settees, Zme, or ~ny o~er cont~etor ~ccepteble the State and US~G ~11 ~ct as ~a~ntor for any plugging ope~tion on ~s w~ up to ~e ~~t of E~loratione fi~ bid of ~,6~%.~. Please ~dieate the ~ntractor you wl~h to c~lete the ~ and as m~tioned, we ~ill pay any billing up to the p~ous mention~ e~t. Ver~- 2x.jly your~ Hobert R. Bro%m Claim Department ce: State of Alaaka ~..par~aent of Natu~l Resources ,l Porkpie cc: Home Office Claims - ~delity-~rety fEXPLORATIgN SER /ICES CO.,INC._.. MAIN OFFICE- POST OFFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 ALASKA OFFICE - POST OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907) 272-2419 April 28, 1970 Hr. J. R. Williams C.~aims Department U.S. Fidelity & Guranty Company 340 Central Bui:lding Seattle, Washington 98104 Re- Your File- 7600 S 1352 Dear Hr. Williams- We are in receipt of your letter of April 6, 1970 requesting that Exploration Services Company furnish you a bond in the amount of $8,290.00 prior to your execution of a contract with us for the abandonment of the Trinity Canadian Drilling Cqmpany Homesteaders Unit No. I BCO/jd Prior to having the bond issued we checked with the State of Alaska, Department of 0il & Gas and found that they would not concur with the abandonment procedures outlined in our letter of agreement with you. They indicated to Us that they are still r~quiring that two bridge plugs be set in the well bore prior to cementing. In our original proposal to you we had provided for these two plugs, but in our rev'ised proposal, which was at the request of Mr. John Norman of the Attorney General's office, ~'we resubmitted our proposal which allowed for only one bridge pl-ug. If the State is going to hold to their requirement %hat two bridge plugs be run in the well bore, we must then hold to our original proposal of December 1, 1969 to Mr. t£. W. Druby in the amount of $9,675.00. .o I'm very sorry that so much confusion has been created, but Exploration Services Company is making every attempt to cooperate with both you and the State of Alaska. lie will look forward to hearing from you in the near future. Very truly yours, ~. . Osborn - President ~,~,'~ AI)rtA 25, -.1970 lb: Tr~nLcy Cm~d_~ aoBeor~ader's t~tc #1 abandmmm~ p.l.asm, Dsar Hr. Ooborn: April ij 1970 / OFFICE OF TIk ATTOi, r~E~ GENERAL --u~CI'iO,{~GE ~?~Af,%H STFFf~T - - 3Ui}F IO.S' KLV FILE l'.~_,, J~ }/(..Williams Claims De~ ~ ~-'km~na Seat'b!e ~ Washington 98!'0!~. Dear,Mr~ Williams Your letter, of March 2L~.., 1970, ~equosted permission from the Sbate of Ala~]~ aut"- ~' P~-U~c~z-~.b ano. 8.ba~.]c~.::n.~e:.~u of well. Your le'bte~ ?u'pther Peql~e~,t--,',:,~.,.c that t" to hold the su. rety harmless fop any expense Please consi'- 'hh'~ '-I; r c-,~,,ae:':' with my o.~r ~.$ ].ei; ,. e tO'-"a'~''' letters of March 3, 1970, and NaPch 18, 197o, as w.~,itten ...... ~ .~.. ousl y aund, sub j ac'k e...pended towaPd ~:~ePio.c,,~ance of th~; ~ for e ...... n ......... We would that ~ou atl;~-n~ n_~s pz, oteaT;~ ,.~ t;'~-- ..... , ~,T.,p~ to soot~ro tTM ' .>_O,., ~.~ Otl~h a'w~a~'~'"n with your cont;Paetoz,. Shm?._t.r~ you det~"',"~n,-~ that you wi!! b.s un~..c.,:e to ademuate!y ~rot ect ~v~.P,:,elt tb::eous;h a:a 8 .... z anrd:c;~::::~nt wi1:;h 'L;he ~ .~-~ -~ .. ~ ~ . co~ ..... a,:.,uop~ then you ,~r q ~' to ..... '" ~ R E C ElY F D ANCHO-RAC-~ Mr. J~ R, WiZliams Page 2 April !~ ].970 We deem it critical that this matter be in the very near future, if you. have addSt'j, onal concerning this matter~ or s~.oulo you feel vhe. nee. m for further clarification of the State's position by letter, then please telephone me as soon as' possible, Sincerely / c: O, K, Gi!breth Div~sion of Oil and Gas JKN: j t FILE '?his w~.!! acknc~led,.~ recc!.~t of Vc~r letter wi. th operatio~.~ to ~I~: and aban?.~ tb~ ,,,o!] a~ o,~.tl, ine,'~ %~i 1. I nevertbe'-' contractor the contractor ~houl.~! contact ~!r, ci~breth so ~.hat proper the ooe~ation. RECEIVED ~ t9 igTO FORM SA- I B ' ~ MEMORANDUM State of Alaska TO: r Mr. O. K. Gilbreth Division of Oil and Gas B001 P Driv~ orcupine AnchOrage, Alaska~.95011 FROth: John K. Nor ral Assistant At OATE : March 9, 1970 SUBJECT, Plugging and Abandonment of Trinity Canadian Drilling Co. Homestead Unit No. I Well / Attac~ ~d for your information is a copy of a letter from United State~ .delitY and Guaranty Co. received today and written in response letter of March B, 1970. It appears that they are willing to proceed with perform- ance as suggested by my letter and if I do not hear from you in the next day or two, I will respond to Mr. Williams, accepting his offer of performance and advising him that they will specific- ally receive credit for any work done toward plugging the well, regardless of the outcome or success of the operation. I will, however, request that before proceeding under any such contract, they submit it to you for approval of its general terms and specifications.. JKN: gs encl. l-lARRY L.. MA:~TI='[~. CPCU MANAGER ME3~TON i.,, ME'~K'.rR Alii~'. MANA~E~ UNITED 5'TATE5 I='IDELITY AND GUARANTY COMPANY RECEIVED. Department of Law 340 CENTRAL. BUlL.DING SEAI'TL~ WASHINGTON 98104 11~L.E~I~HONE: ~O~HAI# ~-777Z ~r'~_ 6, 1970 . . (~ff'/ce of the Attorney General ~ohrl ~. Norman Anchorage Branch AsSI~t~fi~l-~rney General .-. ~partm~t-of Law '- 3~ "~' Street,'~ite IO~ ~ ~ ~V ~ 0 ' ~chorage,:. Alaska 99~1 Dear Mr. Norman: DIVISION CF Re: Trinity Canadian Drilling Company - State of Alask~NCaO''~AO: Our File: 7'600 $ 1352 Thank you for your letter of March 3, 1970. I am sorry that I failed to understand your. intent in reference to our recent telephone conversation that you have expressed in your recent letter. ' . . Werare certainly agreeable ':to working out an arrangement to 'plugth Division the hole of in Natural accordance Resources with the requirements set down by '~e on the basis of the estimate accomplish this work submitted by Exploration Services Co.~ Inc. Our hesitancy to enter into 'such an agreement was based on the fact that I Had preSumed that the State of Alaska would hold the Surety.responsible for bhe plu§ging operation regardless of the cost. If the State is ~,illing to agree that the limitation of the Surety's liability in this operation is the limit of our bond ~enalty 'or ~0,O00, we. will agree with Exploration Services, Co., ~'nc. to accomplish the work. ' ' · . I am sure-that YOu can recognize the hesitancy on the part of the Surety to extend the limit of our bond beyond the penalty of $10,000. _Zf.y~.u ~a?e.willing to accept~ this arrangement, please let me know amd A will"take .action to negotlate a C~ntract for the purpose with EXploration Services Company,~ Inc. Thank you for y~ur cooperation and-assistance _ ~'~t~:rec -.- .... ~~ ~pt. ,,..~.~e.....~. . Claim DePartment - : .:.Ea~ch 3, 1970 KEITH H. MILLER, Governor OKG _~-~/" HWK EEL Mr.. J. R. _Williams, Superint.endent Claims Departmen~ United -St at es Fidelity . and __Guaranty Co_. '-3~0' ';Central Building ~eaCtle., Washington 9810 ~ . Re: 'Trintty C.~adian .Dri2linE Oompany .State of_._Al~ka Thank you for your letter of February 24, 1970, confirming our telephone conversation of February 19, 1970. The State has always taken the position that a surety should have the option to discharge his liability through performance of the obligations of the principal. It was with this in mind that I contacted you and suggested that we make one last attempt to allow you to perform this plugging operation. .Our' file had reflected an apparent' Willingness on your part to perform, however, it appeared that the uncertain condition of the hole had made it impossible for you to obtain a firm commitment within your bond limit of $10,000.00. It was my thought that through mutual cooperation, a way- could-be found for you to proceed with performance. Spe~gifical~I~,~I p~roposed ~that~you ~tteqp.t. t~o obtain a bid in a r~rm aha aeI'inlse amouns.. J_ rea±izea tnat any such bid. within your bond limit, would'be subject to certain qualifi- cations. It'was my proposal that both parties initially disregard the contingent nature of the bond, and that with our approval, you undertake performance within the framework of such a firm bid. It was further my thought that such a bid could be obtaineO well within the limit of your present bond. . J. R.,' Willi ams ' --2-- March 3, 1970 .Plugging operati.ons under such a bid would quite 'poSsibly ~have proven ~ acceptable to the State. You would thus have been released, from any. further obligation and. would have realized a' savings. 'of the difference between · - the ~contract cost and your bond limit. On the other hand, even if~the initial effort -.-~:~o.plug -th'e- well-.faited,-....w.e-- would specifically-have agreed to give'-you credit for amounts expended on this initial attempt, The State-would then .have assumed responsibility -:vfor..--~ ~he'-:operat ion, ~='and -p:rocee~ding'.under a new. c on trac t, would have called on yau only up to the remainder of your bond .liability. In no event, would the total of your payraents ~under-the :initial c.ontract,~ and ~subsequent demands b'y the .... State, have ~exceeded. your 'bond.,/limi t of $10,000.00. It _would appear .~from your reaction to the bid ' :' --~1 :~b~i~tted: ~.~b.y _Explm~at i.on-. :S~'r~ic:e~ ...Company, .In c,, .'th a t .we ~will' he :unable-'-.to proceed .,on. such a basis. Bince :~ne~ther.pmlncipal nor _surety .have performed as required .by the agreement of. March 'Il, 1~66, the State muSt:now a2.tempt_:to.:s:ee.:that :the hole is properly plugged, ~d -~tha~t ~al~,-~her ~p~e.~i~on ~q~ement~ 'ar~e -~s:ati~fied, performance. In order to dispose of this long outstanding matter, we hereby give notice ·that the ~obligations recited in the agreement of March ll, 1966, have not been performed, and we now demand that you pay to the State of Alaska, the sum of $10,000.00. Your check should be transmitted to this office and should be received not later than March 20, 1970. By copy of this letter I am advising Mr. O. K. Gilbreth of the State Division of 0il and Gas, and Mr. B. C. Osborne, of Exploration Services, Inc., as to the present posture of this matter. If either Mr. Gilbreth or Mr. Osborne can develop a proposal which would make it attractive for you to consider performance as previously discussed, in lieu of payment, then I am sure they will be in contact with you. J._R. ~ti lliams -3- '~_In any event, ~;e .'shall expect ':.performance ~i:o'r_-.-to .Margh 20, 19 70 ,. March 3, 1970 eithez, payment JKN: gs 'cc ~ O. '.:K '~ilbreth ..... B, ~C. ~Osborne UNITED STATES FIDELITY AND GUARANTY COMPANY 340 CENTRAL BUILDING SEATTLE. WASHINGTON 98104 TELEPHONE: 206/MAIN HARRY L. MASTERS, CPCU MANAGER MERTON L, MEEKER AIII~To MANA~ilI:I% FeDrUary 2~, 1970 State of Alaska Division of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99%0~ Attention: John Norman Dear Mr. Norman: , FEB 25 Re: Trinity Canadian Drilling Company - State of Alaska Our File: 7600 S 13%2 This will confirm our telephone conversation of February 19~ 1970. In that conversation you suggested that the State was prepared to reappraise the conditions of the abandonment in order to secure abandonment within the penalty of the bond. In our conversation you indicated that the State would be able to secure abandonment through a contractor for an amount of approximately $7,000.00. It was your suggestion that Exploration Services Company, Inc. would be capable of doing the Job. After our discussion by phone I received a call from Mr. B. C. 0sborn advising that he had been contacted for the purpose of submitting a bid on the abandonment of this well. You have received a copy of his letter of February 20, 1970 wherein Exploration Services, Inc. proposes to abandon the well for a total cost of $8,290.00. This figure, however~ is subject to the assumption that the contractor will be able to enter the hole with a wire line bridge plug. As indicated, if it is not possible to lower the bridge plug to the depth required by the Division of Natural Resources, the cost will increase in indefi- nit e amount. It is my thoughh that the Division of Natural Resources may have some knowledge of the present condition of the well that would enable the contractor to give a firm and definite cost figure. If this is not the case, the Surety is not in a position to accept the bid since it is very probable that the cost to plug the well in accordance with the specifications of the Division of Natural Resources would exceed the bond penalty of $10,000. If the State of Alaska is willing to accept the proposal of' Seattle State of Alaska Page Two February 2~, 1970 Exploration Services Company, Inc., the Surety has no objection. Under the circumstances, however, it is our best Judgment that the Surety is not in a position to deal directly with the con- tractor. Please refer to my letter of December 23, 1969 concerning this subject. It is our feeling that the State of Alaska is in a better position to assess the fairness of the present proposal than is the Surety who has very limited ~nowledge of the particular well under consideration. J~. R. Williams, Supt. Claim Department JRW:rec cc: Home Office Claims - Ray Britt State of./~Alaska, Department of Law' - Office of the Attorney General - 360 "K" Street, Suite 10% - Anchorage, Alaska 99~05 - Attention: John Norman, Asst. Attorney General FEB ~ OF 011. ANCHORAGE MAIN OI FICE - Fr'ST OI FICE B X 31 17- ' ENTURA. CALII:ORNIA )30 B. C. OSBORN PRESIDENT H. L. BROWNE ViCE-PRES. MAIN OFFICE - POST OFFICE BOX 3137 - VENTURA, CALIFORNIA 93003 (805) 644-2214 {907) 272-2419 February 20, 1970 Mr. J. R. Williams U. S. Fidelity & Guarantee Co. 340 Central Bldg. Seattle~ Washington 98104 Re: Trinity Canadian Homesteads Unit #1 Dear Mr. Williams: In reference to our telephone conversation, this date, I am resubmitting Exploration Services Co., Inc., proposal for abandon- ment of the subject well. Exploration Services Co.., Inc., will abandon the subject well for a total cost of $8,290.00. , The work that will be performed is as follows: 1. Run and set wire-line bridge plug at approximately 1650'. 2. Perforate 7" casing with at least eight (8) shots just above the 13 3/8" shoe. 3. After 7" casing is perforated, circulation down through the 7" casing and up through the 7" - 13 3/8" casing annulus will be established to the surface. 4. At least 200 sacks of cement will be mixed and pumped down the 7" casing, with 150 sacks displaced into the 7" - 13 3/8" annulus. 5. After cementing, a 10 sack surface plug will be set in top of the 7" casing and a regulation well abandon- ment marker installed. 6. The location will be cleaned up and left in a generally level condition with the debris, which would create a hazard to human or animal life, being buried, hauled off, or burned. Pits will be covered. The above quotation will include all of the materials, equipment, and labor necessary to carry out the above operation. ~l~y~ FEB 1197o DWI$10N OFOI[ AND In as much as Exploration Services Co., Inc., does not have an intimate knowledge of the present condition of the well bore, the above quotation is subject to our being able to enter the hole with the wire-line bridge plug. If it is found that we are unable to lower the bridge plug to the depth of 1650', it will be necessary for us to renegotiate or terminate this agreement and you will reimburse Exploration Services Co., Inc., for all out of pocket costs relating to the abandonment of the subject well, plus and additional $200.00 per day or minimum $500.00 for our services. Please note that Exploration Services Co., Inc., is willing to accept the liability for equipment failure, down time, machanical failure, and other contingent costs in the above quotation. If it is your desire to accept some of these contingent liabilities yourself, we will be most pleased to work with you on a daywork basis at the rate of $500.00 mobilization fee (set up fee) and $200.00 per day. If you require any additional information, please let us know. Very truly yours, EXPLORATION SERVICES COMPANY, INC. B. C. Os born President BCO/ler cc: Mr. John Norman State of Alaska, Attorney Generals Office Mr. O. K. Gilberth Division of Oil & Gas % TIC DJUSTERS, INC. L~~ ~0~ F'OURTH AVENUE PRESIDENT January 15, 1970 State of Alaska, Division of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99'504 Attention: Mr. Gilbreth ' ............ ~"~~ Re: Well location: / Homesteaders #1 ~ Bond: / United States Fidelity & Guaranty Co/Trinity Canadian · / Drilling Company ~ USF & G claim number: 5~3^S 1352 ~// Our File: ~ k 14897- closed ~~j~ Gentlemen: In accordance with our discUssion and your request, I am attaching photostatic copy of the letter of December 23·, 1969 from the bonding company to the Attorney General. I believe the letter is self-explanatory and you will of course understand as I explained, that our local file is closSd. If you have any further inquiry or correspondence please direct it to the bonding company in Seattle. Yours very truly' / ARCT~S , INC. KMD: js Encl: USFi & G letter: 12/23/69 CC: USF & G 3·40 Central Building Seattle, Washington Attn: Mr. J. R. Williams, Claims Supt. I'te~e I~erty By Air M~t CARBON COPY STATES FIDELITY AND GUAF~ANTY COA~P~Y $40 CENTRAL BUILDING ' StEATTLE, WASH. 95104 .;~ ~. e]ephone: -~?,- .. 206/~Ain 2-7772 , State of ~.laska Office of the Attorney 360 "K" Street ~iz~orage~ ~aska 99~01 Attorney General Bond Humber: 73~0~-t3-713-66 Our File: g3 S 13~2 Trinity Canadian Drilling Company - State of Alaska ~:~'e have been unabl~ to obtain a' firm fi~are ~ithin tho penalty of our bond to cover plugaing of. the well in accordance with sp~%cifications emanating from the Department of ~,;atural ~, review of you~ co~,respondence will indicate that the original ostlmated cost by your agency %ms $~gO0.O0o As previously catsd~ we are unable to Obtain a firm figure '%~ithin the bond penalty. This is to notify you'that the Sh~rety does not intend to pursue this matter ~urth~r because of the above, l~e suggo~3t that th~ obligee make a~rangemcnts to have the ~ell plugged as tko Department of Natural Eesourees sees fit and pro~lde us %,~th a copy of the final billing. The Suret?! of course~ is obligated to '"'"> ,~' s bond penalty of $~0~000.00. e~,e~ of it' truly yours~ , ~. ,.,,,~.~-~.,~,,,~,~ Supt. Claims Department ,, Home Office Claims - Ray Britt ~c~ic AdJusters~ Inc. - 1026 Fourth Avenue - Anchorage~ AlaSka 99~01 - Ken Druby UNITED STATES FiDELiTY aND GuaraNTY COmPaNY 340 CENTraL BUILDING SEATTLE, WASHINGTON 9810~, TELEPHONE: 206/Main 2-777~ HARRY L. MASTERS, CPCU MANAGER MERTON L. MEEKER ASST. MANAGER December 23~ 1969 State of Alaska Department of Law Office of the Attorney General 360 "K" Street Suite 10 ~ Anchorage, Alaska 99~01 Attention: G~ Kent Edwards~ Attorney General Gentlemen: Re: Bond Number: 73~0%~13-713-66 Our File: %3 S 13~2 Trinity Canadian Drilling Company - State of Alaska We have been unable to obtain a fichu figure within the penalty of our bond to cover plugging of the well in accordance with specifications emanating from the Department of Natural Resources° A review of your correspondents_ will indicate~ that the. orl~'~'~.~nal est~maoed Cost by your agency was ~00.00~ As previously indi.~ cated~ we are unable to obtain a firm Pigure within t,~ -bond penalty~ This is to notify you that the Suroty does~nOt intend to pursue this_ matter further becau.se of the above. We su~es that the ob!igee make arrangements to have the well plugged as the Department of Natural Resources sees fit and provide us with a copy of the final bi!ling~ The S~?ety~ of course~ is obligated to the~ e~en~ of i~'s bond pemal~, cz ~0~000.00. Very truly yours, (../~"~o Will. iambs-Supt. Claims Department Jk%~: rec cc: Home Office Claims - Ray Britt cc: Arctic Adjus~rs Inc. - 1026 Fourth Avenue Anchorage~ Alaska .99~01 '' - ~ _ Ken D - · ub~ , Seattle 2849 Porcupine Drive ENGINEERING SERVICES ,, Anchorage, Alaska 99501 October 15, 1969 Artic Adjusters, Inc. 1026 Fourth Avenue .Anchorage, Alaska 4 '~' ~'~ .. ~.,,, i~ 4 ~' Service First Attn: Mr. K. W. Druby Re: Trinity Canadian Drill.ing Co. Homesteaders Unit No. · I Gentlemen: " The work necessary to plug and abandon the subject well to satisfy the Oil and Gas Conservation Committee can be per- formed by Nay Industries, Inc. for a turnkey contract price of $10,%00.00 payable at the time the contract is awarded. Nay Industries, 'Inc. will completely accomplish the abandon- ment work as stipulated in the Division of 0il and Gas letter of June 11, 1969. Signed by Homer L. Burrell - Director. Very truly yours, INDUSTR~.~,...INC. REN: an (attached) Kael~er Homesteaders No.1, Vicinity Sterling, Alaska 1~879 .elity & Guaranty Co. Claim No: 5B S 1B52 rm our previous contacts with your office in connection with tter. bhe United States Fidelity & Guaranty Co. who is the bonding ~he above captio~d matter. sketch of this well and description of the cond~ions along with )iv. of Natural Resources to plug the well in accordance with 'efer you to their letter dated June 11, 1969 as to the specifi- ,g of this well. reviewing this and submitting to us if you could do this work, al work. ~ssible, being Just a little over one mile from the Sterling Hwy. :oad. Further information is available f~m our office here or Div. of Natural Resources. 2,,' ~w~o~ OF O~L ~ G~ ANCHOP~GI~ ~dicated ~l Porcupine DRive, ~ch~ge, ~aska 9950~ Gilbreth y & Guar~ty Co., BhO Central Bld, Seattle, Wash. ~ILB TRM HWK REL FILE State of Al~~a Office ~ the Attorney ~eneral 360 E ~reet, S~te 10~ ~ehorge, ~aska Attention: Mr. Robert L. Har~ig Well: Homesteaders Unit No. L Location: Vicinity S~ltng, Alaska Principal: Trini~ Canadian Drilling C~mpany USF&G Claim: ~3 S 1322 Our Fi~e: i~897 Please be advised t~%h reference to the caption bond that we have on October 9, 1969 left all of the we~ informatiOn and the specifications prepared by the Dept. of Natural Resources with Nay Industries, Inc. We made three separate trips there and left this mater~al w~th Mrs. Nay as he apparently had to leave early this morning for ~airbanks. At the request of the bonding c~pany we have also personally aubmitte~ again on Oct.8 all of the same material to Alaska ~eologieal Consultants, Mr. Harold ~oening. ' ~t is hoped that if and when these t~o firms submit total bids for the work you have. sPectfie~ethat payment and performance can be aec~apltshed. Yours ver~ truly, k.~CTI~ A~TUSTE~8, INC. K. W. Dl~lby United States Fidelity & ~u_ar_anty co., 3~0 Central Bldg, Seattle August 21, 1969 State of Alaska ~ BePartment Office off~ Attorney General 3~;0 '~treet lO5 ~or~e, ~ka 99501 Attention: Mr. Robert L, Hartig Well: Location: Principal: - USF~ Claim: ~ File: TRM KLV .... REL ~"-'L ls FILE ..... H~neste~s Unit No. 1 Vicinity Sterling, Alaska ~ini~ Canadian Drilling Company No. 53 B 1352 You have our last letter of June 10, 1969 and we subsequently received a letter dated June 11, 1969 from Mr. Burrell. Unfortunately the latter does not a~parently clarify the proposals in a specific invitation to bid form. As a result Y have again had to submit to Schlumberger and Halliburton the original work proposals that you gave me with the ~tate estimate, together with copies of your letter of Jun. e 11. Apparently the primary difference between these two items is with reference to the installation of the bridge plug to be set between the 9000 and 9200 foot level. completely impossible to get ~ther of these firms to submit a complete bid for ~t is this entire Job, They have submitte~the attached rough notes in~cating what their additional charges would be at this time, and we attach these items that were written down for me. However, it would appear that bo~h fir~s submitted a bid for the bridge plug an~ there certai~ is a wide variance in their prices. '.~ We have to date been unable to find any contractor wh~ would undertake to bid the entire Job. These people have suggeste~ ~ocher 0onstructio~ ~o. who apparently would be able to do the other wore in addition to the work done by Schlumberger and Halliburton. Y am un- able to get anything from the offfiee of Loeher Oonstruction here and they have suggested that Y should personelly go to theft office in Eenai and arrange to take their personnel to the well site a~d to also furnish them with a more specific invitaiton to bid. Possibly this would be better in the form of a letter or speelfic form for the contractors rather than the letter to our office, ! assume this would be the method followed by the State if they ha~ to do the work and all we can attempt to do is determine what is necessary and arrange for the payment of the money necessary to accomplish that work on your behalf. State of Alaska - Attorney General USF~ Claim: 53 S 1352 Page 2 8-~1-69 If you could review this and possibly combine this material we would be pleued to go forward with the people at Loeher Comstruction as that appears to be the last hope. of any kind, We further assume that you have and will make the neeessary legal arrangements for the work to be earried~t there. Yours very truly, ARCTIC ADJUS~RS, IN C. O~OFOILAHD~ j Bo,,oo North Kenai Off M. A, "MICKEY" CAI<TEl< AIosken Enginoer HALLIBURTON SERVICES Phor~¢ . . . P. O Uox b2~;7>,A Anchorage, Aio:,ka h "TO= !! [] FOuR YOUR INFORMATION I} [] TAKE APPROPRIATE ACTION', !' [~ PLEASE NOTE AND RETURN [---1 ti g_J PLEASE SEE ME h []] PREPARE REPLY FOR MY SIGNATURE -Ii I'] PLEASE ANSWER [ ! NOTE AND FILE ": J J t'LR YOUR REQUEST ;~ [ ', NOTE AND PASS ON COMMENTS~ ;I · :?, C~ ~ DNiSiO{,,i Ol: OiL At4D (~k~' OIL ASD ~GAS Kro K. W. Druby. 1026 :.Fourth Avenue " /mc~ora~e,~=A]~eka- 99501 _ ~ . --The .£~ ':f.nfoFna~ vid, cb:you requested :fa cbe m.'LnJ, nua work that the '; ?-'O:l.l,".,.and.':~b."ConoeEva~ -tion Conm~cl:ee £ee:l.e-':hJ"neceaealt3r co' abandon' the ,ub.lect: :':', '; ',,' · :';~,:W~-!".,iXt::':'io.,~'~r::;.~,.~_S thaC.~,.p~::.co award a turnkey, bid co ar, con- .,' · .~.,.~/h~';~e.:~t!Work;'. 'S:tnce~/.Cho~.e:uaY be a probXem--:f,n'obc~ entry ::.--ti)".~!:_pree~sm,.-.you. ehou~ not~y..ch~".o£f:l.~e ac lteac 'five days :tn advance :::?o£.:':~'daCe :3~m ip~Lan-':'-CO.-~L~t~;~Ce '£tt~i.' work',' Since the aband~nnent oPera- ,';::'t~on'::~:::relar~Lv~_~Ly .:.8 .tmpX*~..i.:work: shou:Izl be. cont:tnuoug' once entry f:o :t:he pren- ----'~le~ ~ia",~o.:-Vou-havep~a.~M~sly.~--beeUl-f~hed ~b. a .chemat~c drmr~ug about3qg','~..pzeaenCi:-';dOau-hole eond~rJJ~n-o£.: ~ie'' well. The '~oXlou~ng will be .necessary. 'for..'.al~. rOVed ~.:ab~= '.' : :._/:'::-'/':, .. ,.. ,~.. . · I,~' ~un:and eec u~re-l~nei, br~,-P~ua..becvaen 9,000 co.9,tO0 ~c, .-.-..~.~ :.~ :.- - . : · ,. 2. ~Cer..br~d~e plug ia set~ 7"' a aeOns .hould be ~l~ed w~ch racer or nu~ and.'pe~orated.-v~Chl.aC-laaac'.e~ghC ehoCe ]ueC abowe the 13 3/8" "oboe:or::aC;'atxp~cely_.'.l,~... ~c, , ', ' :' '" ~ ..,~ '/' i .': ' '! . ' ...... ' 3. AfCor';~ ~tng to-perforated,.: circulation' dram Chroush the 7" .~. ~fCer;:'cane=c~,::.'8 lO'~.a..u~.ac~ plug ,hou~d be eec ~n top of .. ...-. - .. -; - LI~:a~ ~ be tt.eaned up and'~'~c'. :tn a General 99501 JUN 1 1 1969 DIVISION OF Oil. AND OAS Attention: Mr. Robert L. Hartig Well, Homesteaders Unit No. 1 Location - Vicinity - Sterling, Alaska Principal - Trinity Canadian Drilling Company USF & G Claim No. 53 S 1952 Our File No. lh897 This will acknowledge your letter of June 5, 1969. As Z have never yet received any further wri~tqn instructions or changes, even though referred to in the letter of December 17, 19~fr~ Mr. Hemer Burrell, ! have, on June 6, 1969, called on Mr. Gilbreath. I have requested frem him an up to date specific statement as to the "pre~ons~f well" whi~ will incorporate any changes referred to ~n your recent correspondence. / have from detailed list of the work that the also requested him, your behalf, a State will require to be performed in connection with the plugging of this well, It our intention to then submit your proposal to bonded contractors for specific guara~teedl '~e will confer with you personal~¥ when we have these ~ifls, but until such time aa have the ~l~n~..itiolla~and work proposals speeific~~.~.~~._~n det~l, we obviously cannot get them. The bond~~~'~'~~"~'~'~A~$'~'~iS~ ';~J~'~~ business of plugging wells and will endeavor to determine the exact cost of what is necessary and will then review the final procedure with you. It is assumed that you will handle all details with ~pect to taking possession and actual authorization of the entry and work, since obviously any contractor could not be responsible for those a~pects. Yours very truly, ARCTIC ADJI~TEqtS, INC. State of Alaska, Dept. of Natural Reso~ Div. of Oil and Gas, 3600 Porcupine Dr. /¢0 6-d ~ MEMORANDUM FROM: State of Alaska DATE : ~i~~~ SUBJECT: Re: Arctic Ad~ters. 1026 l~r~ Avenue ~mc~o~ge ~ Al~sk~ 99501 ~s letter Ss ~o advt~e ~o~, as adjuster for tl~e Da~son-Hartin ~auy~ ~C the Dtvtst~ of 011 ~ ~ ~r ~ ~~ers ~ ~. I veil c~red by ~. ~ ~e pr~d~ you ~Ch Chis ~ormt~n so t~t your c~~ ~ p~~ ~ plug ~e ~C~rs U~t ~o. a~preciate your cooperation in delaying the plugging operation considered proposals to re-en~er the ~ell. It has co~e to ~ar attention ~hat the hole does not contain ~d. Th~ ~1 ~ssitate s~ ~an~ in t~ plug~i~ p~ p~o~y f~h~. Plebe ~e~ ~ith ~ at y~r e~ly ~n~ience ~ 'th~ ~~~. A ~sit to our oific.~ for a d~ssi~ ~th ~r ~g~ers ~ suggestS. Very truly yours ito~r L. Bur~ell Director CORE LABORATORIES, INC. Petroleum J~esem, o;r Engi~eeri.g DALLAS 7~ TEXAS December 10, 1968 RePlY TO BOX I0185 CABi~- COREIAB State of Alaska Department of Natural Resources Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska Attention: Mr. O. K. Gilbreth, Jr. Gentlemen: In answer to your letter of December 3, 1968, regarding Trinity Canadian Drilling Company, Homesteaders No. 1 well, the Grapholog you have represents everything we saw during the logging of this well. Well samples were delivered to our unit by the drilling crew during the section referred to by code and we do not know where these samples were taken; however, everything submitted to our personnel is reported on our log. Very truly yours, CORE LABORATORIES, INC. James A. Cusator District Manager JAC' sm RECE VE DEC 1 1 UNITED STATES CANADA SOUTH AMERICA EUROPE AFRICA AUSTRALIA I:ORM SA - I B 125.5M 8/67 MEMORANDUM TO: J-- FROM: 1 State of Alaska DATE : ~ 4tt ~ pend-~ al~mdonsmnt ~tJ:n~ ~4,11 lnter£m ,in any ~my ~rttb t~m la~al i~oe. am~ns er glad ~ h~ld ~-plazm l~ ab~ et ~y ctam prier cc: J. L. ~cCar~y, J~., ~~ At ~, ~mcho~age, Alas~a Arthur i~ppi, -~umr~~., &laska DIVISION OF OIL ~9 ~AS ~e~r :3, 1968 Core Laboratories, P. O. ~ox 6~ Bak~siield, Cal/2orni~ ~3302 Townsh~ 5-~orth, ~ hi Burou~. Alask~ Attention l~o Cus.a~e Gentl~: The depth at the s~t of the Core Lab log t%rn~ to u~ ~ lml~~ by the code C~15 and ending wt~ ~ ~ KI-l. Approztmat~ly 70 fe~t belo~ interval marked ~-1 on your lo8 the ~e~th s~arts at 9,950 £eet. Since the title block of ~ Or~pholog itself does mt show rime b~ oE the lo~ed interval, we ~ould like co decez~L~e t~ the log filed re~resents the entire interval lo.ed by Core Lab units on this Well. As you probably k~me, the oper&~or on thio ~ell ~s no~ bmflcrupt ~ ~ ~ ~ the Pm~ of hitht~ 1~ P~~s qa~t t~ ~t~ ~~y ~ ~~e pr~r ab~t o~ t~ ~II. l~e ~uld ~preciate your miv:t~i~g ii we h~ve received the log re~reseating the co=ple~e ~terval wh/ch yem lo.ed. Very ~m!y yours, ,.,~ ./ ?'. :=7"'-z '/ '" O. K. Ollbrech, Jr. Chief Petroleum Engineer Pedersens' Moose River Resort Star Route · Sterling, Alaska 99~72 · Phone 2~2-4515 DIVISION OF OIL AND GAS ANCHOttAgE Division of Oil and Gas · D~pa.r. tment .of Natural Resources ~001 Porcupine Drive A.nc~o.~ag e, Alaska Oste .November 22, 1968 Subject Homesteader Well #1 Dear Mr. Marshall: Thank..yQn for.your .!.ett~r of the 19th with the information about the plugging of our well. MY PreVi'oUs informatiOn came by phone call from a land-owner and small .......... i.~.¥e.....s..t..o.~., in...An, chorag~, ...... .He......told..me, erroneously, as. it turned out, that Mr. Lappt was being asked to plug and abandon ttB well. He wanted the ...... Ho.m.e....~..~..~ade.~.s t.o .~r!.tc ..the 8.~ato..about. this ~ which I did. ~.~....,~.gm~s..~.de~ .9~..~.~..~.,h~Ye .~een.p!.~gu.ed by .m~sinformation and rumors for years° Your letter had more factual information on what is going on th2~...we,ve .gotte~.f~...a. long time, and we appreciate your taking the time to write and explain the State's position. IncidentallY, Ma~athon Oil is Offering to take 5 year leases ~ $2 acre/yr on land in the vicinity of onr well. We'll be.more careful in. screening telephoned 'rumors' in the future. (for the Homesteaders) M[.MO,leCle~'e' by The D~aw,ni Boar(~. lnc. Box 505, Dali,liS, ~e~as DIVISlO~ OF O~ ~ GAS ~ Mr. Ped~a: I wa very pleased to receive your letter of November 1~. ~. &~ Lappl h~s ~t be~ r~.~ad by ~ offi~ ~ plug ~ ab~on t~ ~~t~ Uni~ ~1 v~, ~ y~r let~ i~tcat~. ~ · ~ttez of ~ay ~tul through D~s~~tin I~~ ~y lrc~c AdJ~~ ~o of interne ~11 be ~ a~ ~ ~11 be res~i- ble to p~g ~e ~ ~ th~ office so directs. ~e~ro~e ~ ~i~Xty ~i~ 9~g C~~*~ bond. Mr. L~i ~ted a~ of fie on Ocher 9 a r~~ ~ ~ delay ~uir~g ~ b~i~ ~ny to plug and ~a~ ~ ~11 so ~hat Mr. ~ppi w~Id have t~ ~ ozg~ a group of Fairba lnv~to~ who alle~ly ~d a~ply a bond by ~~er 1, 1968. and re-~t~ ~he ~pC~er. 196~. ~ ~~ed ~, by ~-r letter of ~~r Mover I ~ a~p~sh t~ae plm~. lie ph~ed on ~8day, October 24, and said ~~ge of ~e ~~sion ~at ~ h~ g~au~ h~ did ~t r~ch him mtil a~ro~~ly ~~r 24 be~e his a~t~y h~ an i~roper fo~arding ~dr~8 tn ~at~lm. For ~h~ re.on he aak~ ~us~ for ~ .extuim. ~flI ~c~er 1 to ~C ~ ~ force ~ ~at ~ u~d ~. ~1~ to t~t v~l~ . I ~d 1~e ~ re~ ~ ~h~ office has to plug a~ ~.~~ ~he ~steade~ Unit ~11 Il. It is ~ difficult by lit. Lapp!'a cmn req~u~si; to secur~ an axtmmion of time before sura~ ~1~ t~ ~quir~d ~o plag this veil. fei fr~ ~ ~~c~ ~ a~ ~. Very truly yours, t~oa~ R. I/arslm11, jr. Petroleu~ $up~rv/sor T~:~y NE~ HOM~TEAD UNIT LEASE CONMITTEE Star Route, Sterling, Alaska 99672 November 15, 1968 Division of Mines and Minerals Department of Natural Res ourc es 3001 Porcupine ~ive Anchorage, Alaska 99504 Dear Sirs: It has been brought to our attention that your office has requested Mr. Art Lappi to plug and abandon the Homesteader Well #1 in the Sterling area. On December 4, 1967, the Homesteaders executed a "Notice of Termination" of their leases in the Homesteader Unit, ~ecorded in Kenai Recording Office, Book 29 Misc., pages 149-153. A wopy was sent to the State Department of Natural Resources. Under the terms of the above "Notice of Termination" Mr. Art Lappi no longer has any control of the Homesteader Well #1. Sincerely yours, cc: Jack Bradford Stanley Thompson NE~ HOMESTEAD UNIT LEASE COMMITTEE By: ~_., ~._ Walte~ Pedersen, Committee Member RKIIVfD NOV 18 196R DIVlilON Of OIL Akll) OAS DIVISION OF OIL AND GA~ October 16, 1968 Pluggin$ Operations Homesteaders Unit ~11 No. 1 Trinity Canadian Drilling Company. Operator ~r. J. L. ,~tcCarrey, Jr. Attorney at La~ P. O. ~ox 1333 Anchorage, Alaska 99501 Dear lit. ~ar~y: This letter is ~ritten to you regarding the desire of Mr. Arthur Lappi and ao~ other owners of the working interest in the captioned ~ell to re-an~r the hole for further operatio~. ~e s~ety co. any ~hich bonded T~ty C~ad~ Co.any ts presently actl~y ~ki~ preparati~ ~ ~t~g approv~ to ~t ~ c~'~g ~r/or~tio~ ~ ~e ~p~o~ ~11 and place a retulatioa s~face plug in t~ ~r~ of ~e ~11. ~t ~ ve~ strongly that ~ pluming of the perforati~ et~ c~nt ~ p~sra~ in the p~s~t absent progr~ v~ld ~ to ~ ~ by ~y ~ o~ra~r 're-entering th~ ~11 for further ~p~~ or devel~ut ~eratt~ since ~e e~tinl o~m perforatio~ did ~ yield vi~ of ~e fact ~a~ the present surety is prepared to do this ~ork at ~hts ~i~, ye f~l zhat tC ia unfair to delay their oper~tio~ heca~e the plullint of the perforations n~ o~n would ha~ to be done an~ay by another ~e~a~r. ~e feel thac t~re ~ould be ~ fi~nilal burden imposed oaa ~ure opera,or by ~he ab~~nt proc~u~ ~ich ye require of the p~e~ Since there is a possibility that actual operations will hOC be under way for s~alweeks, v~rtll allov your .group until November 1, 1968. to provide as with a ~10.000 drillini bond on [or~ P-2. aa enclosed. If~e reeeiv~ this bond on or b~fore~o~mber 1, relieve the prammt safety of th~bondinsobliption and.~xt~d the period for..pluE~tng until September 1, 1969. Ple~sa contact us if~ can provide any further infoz~stion on £hts ~at£er. SUITE SIX LATHROP BUILDING J. L. MCCArREY. JR. ATTORNEY AT LAW ANCHORAGE, ALASKA 99~01 October 9, 1968 P.O. BOX 1333 TELEPHONE 277-8342 Mr. Thomas R. Marshall, Jr. Petroleum Supervisor Division of Mines and Minerals Department of Natural Resources State of Alaska 3001 Porcupine Drive Anchorage, Alaska Re p!~ugging of Homesteaders Well No. 1 , , ,, , , Dear Mr. Marshall': Mr. Arthur Lappi is presently in my office concerning the above entitled matter. I am advised bY Mr. Lappi that he and the other owners of the working interest in said well are endeavoring to go back into the hol~ or have some oil company go back into the' hole for~ further exploratory or development' work, and Mr. Lappi and his group have asked me to request that they have an extension period of one year, or until the 1st day of November, 1969, before the. Pl~uggi~ng of the hole becomes necessary. Thank you for your consideration of this matter. cc: Mr. Arthur Lappi Mr. Bill Stroker Mr. Chas. Clasby Mr. Perry Green Mr. 'Gordon Mitchell ly, R EC"F!V.F O DIVISION OF MINEb ~ ANCHORAGE RECEIVED · DIVI.SIOI~ Ot: MII',IF__S 8,. MINERAL,S ANCHORAGE Octobe~ ~, 1~8 Clara DepOt Un,ted Sta~'~es FXdel~ty and G~ty Co. ~llo Cent~-al ~ldZn~ Seattle, 1~ash~.t~ Dea~ M~o Puohe~ .: · The,'.~~, ~' 'th~- off~ee has not been. oonWe~ed b~ Y~ ~~~~ve~~.:':~~ '.~ O~~ ~' date' 0~. ~s le~te~, ._ Ch:~e:F,::.~Hatur~l ReSources 'l~LH:bd! -cc :1~, Thc~a8 Marshall. D%v~s~on of' N;t. ne8. ,,-... ~.. -.: ,_., ,.~.',.:, A~chorage Bra~ch ANCHO,~AGE ~950i September 3, 19~8 'jvc. Eric Pucher, A~ting Superintendent Claims Department United States Fidelity and Guaranty Co. 340 Central Bul~odino Seatt!e.~ Washingto~. 98104 RE: Trinity Canadian Drilling Co. File No. 53 S 1352 Dear Mr. P~her I 8~n writing in reference to your letter dated August 15, 1968 in which you state that your representative in A.,.~chorage wil be notified concerning the referenced matter. This offi'ee has not been contacteS, and in order that the proper plugging and abandoning of the subject well bore can be accomplished it is important that the operation ~mmence within the next 60 days. The location of the su. bject well is such that reasonable access and operations can be ¢onduct=d only during the summer and fall months° .. 'I will appreciate it ~. your represe~tative will contact this office or Mr. Thomas Marshall~ E×ecutive Sec.~- ......... ,,-., Department of tary, Oil and Natural Resources, Division of Mines and Minerals, 3.001 Porcupine Drive, Anchorage, as soon as possible. Very truly yours, G. KENT EDWARDS Attorney General By-~- -.~~".'~', . ,' Chief, Natural Resources RECEIVED SEP ~ !9B8 ~I?IJlON O~ MINES Ip~il 11, 1968 Trinity ~u~diim D~tlltn$ Coopiny, Operator Aa~hor~e, ALsska ~9501 ~Mar ~ira: · o le~vu -~t8 ~nLI in a con~t~ion '~o ~ly ~Ch ~o ~ ~~ ~~ ~he ~t~ ~d ~e ~ hole ~r~h ~aZer s~s ~. t~ cop ~r~ of ~ ho~. You ~ b~ rJmpoasibte fo~-~he op~atton~. ~ of oar / FORM SA- lB 125.5M 8/67 MEMORANDUM TO: [- State of Ala~'k~''' DATE : ~ ~1~ ~ FROM: SUBJECT: RECEIVED R/~R ~ ~ 1968 DIVISION OF MINES & MIN~ ~HO~GE o o ! V Principal (Surety) or Insured (F~deliW) and Address co. A ent 746 F stree g ame and Address) Anchorage ,. A~as To g Remarks: · u~t #I ~ re~~ed bond ~a bm cm~e11.d m~ly ~lth om, approval. ~e do ~mt app~ ~ tktm propma.~ cam~mllaCion a~ of April 21, 1~68. ~ HO~T~ D-NIT LEASE COMMITTEE Box ~ Ste~ling Alaska 99672 January 2~, 1968 ~r. 0. K. Gilbx, eth Department of NatuPal Resources Division of Mines and Minerals 3001 Porcupine Drive Anchorage, Alaska 9950~ Dear Sir: Can you tell us the date on which the well hole information of the Homesteader #1 well becomes available to the public? Also, can you tell us the status of the plugging bond on the abowe well? Thank you. NEW HOMESTEAD UNIT L~IASE COMMITTEE COmmittee Member cc: John G. B~adford Stanley F. Thompson RECEIVED' JAN 2 6 m~ ~ 1968 AncO, Alaska 99501 Subsequeut to ~ totat depth, tim operator selecctvely tested intervals in the ~eXl, then suspended operatlono. The umX! vms uot properXy plus~ed ami abandoned major, inS to our regulac~. The d~rJ. Xli~ &~d ~t have been unmbL8 ~ mo~ that tafogma~on filed by ~ ~~ ~ p~~ to ~ ~t1~ ~ n~ely pl~ Chis w11. ~ of t~ officials of ~ ~, ~. ~ ~~, ho ~tc~ ~ ~~ p~ ~1 p~ ~ ~ld ~1~ ~ ~~ p~ ~ of iufozumtton for ~mry maspmnmton of the ms-11. Thio NOTICE OF T~NATION OIL, GAS_ AND MINERA,L LEASE December ~, ~ TO: joint~¥eh'~,u~e'G~'OUp/Woi~l~-tn~ :Interest Owners and Investors in .tho "Homesteader Unit", Sterling area, Alaska. · Department of Natural Resources, State of Alaska. And others. KNOW ALL ME~ BY THESB' PRESENTS: REFERENCE is hereby made to that certain 0il, Oas and Mineral Lease dated .December 1, 1.96~, made to Owen .R. Smith, Sr., as LeSsee and recorded in 'Book 15 Miscellaneous, Pages 64-97, of the Kenai Recording District, State of Alaska. THE AFOREBAID LEASE is hereby terminated on this date under the P~ovisions of Pa_~agraph 12-a of aai.~ lease insofar as it affects: the Sixty-one-(61) lessOrs ~ top lessors who the original, and counterparts,-of the "NOtice an~ re.corded September 1~, 1967, in Book 28 Miscellaneous, Pages 126 & 127, ~'f the Kenai Recording District. (Add~e0a~--l°a ~.~ome.F ~armer ~nd Rosella _l. Fax~ner-'-to the list of signe~ 29 Mi~sCelianeous:,---Page 110, Kenai Recording District.) '~ The apPlicable 'and .pertinent portion of Paragraph 12-a is hereby quoted: "... the ~ssee herein, his heirs or assize, shall _ within one year i'rom this date commence ~lrillln~ ope~atio~a" as that term ia defined in this lease...., and shall, there.- after with due diligence prosecute and car~y on such operations .o~the point of completion of drilling to a depth sufficien~ to test the p~oducing formation (commonly k~own as the Hemlock ~and):... or to commercial p~oduCtto~ of oil, gas-, or other minerals at a lesser ~epth.... lhat, and in case sUch-d~illt~ .operations are not so oo~~ ~d prosecuted ~ above ~, th~s ~ ~ ~- ~t ic a!!~ ~e ~i~ e." P~Oa DECEMBER 8, 1965, no work was do~e on the drilling site or ~oad thereto for a perioi of t_~ (~) weeks. Also, four months ar~l ten days elapsed from the sta~ ~ drilling; oPe~ati0n~ ' o~t~e"aotual spuddin~ in of the well. This cannot, by any means, be construed as workin~ with due _~iligenCe. Mm. J. L. McCa~rey infomaed several inquiring at least eight HOur's' a dal ~ "d~illt~ ~e Homesteaders have neve~ ~eoeive~ a~ p~oof the Homesteade~ ~ell il ws~ d~tlled to th, ~ock ~t o~ the Hemlock ~d was 5111 testet. ~. yell is ~~t,~ to cased to 9,760 ree~ out or atotal dep~ of 1~,~0 feet. well is pl~ged with 1% feet of cement at a depth of 9,450 feet. Pot eoapa~ison, the Sterling Unit a3-15 aaa wll lool~et miles West of the Ho~steade~ ~1 well ~ached t~ Hemlock S~d at 13,9~ feet. ~e ~a~ade~ ~~ ~the~ not aoce~ ~e wo~ of ~. ~. ~-on~ ~, e~~ of the well, ~ ~ o~ ~1 geol~ist, o~ efface staff, aa to whe~e~ ~ H~~k ~ - 1 - NOTICE OF TERMIHATION OF .0IL, GAS & MINERAL LEASE, December ~, 1967 was ~eaohed and "fully tested". The Homesteaders would prefer to get the fa=ts either f~om the Alaska Stat® Dep~rtment of Mines ~d M~emals oP f~ ~n independen~ geologist no~ selected wi~h Leona~ ~sh o~ the ~n~ty Oanadi~ ~11~ aforemonti~ed lease i8 he~ 'to~ated, ~th '~e excePtion of the-s~e, pe~o~t~e o~ interest o~ed on ~oem~ l, 1~67, by ~a.-~rga~t Smith, widow of ~. ~n R. ~i~, 8~. S%td sha~, percentage o~ interest shall remain pe~ntl~ assayed to the aforesaid ~1. ~mith. R~~CE IS ~DR to a lette~ dated Move~ 27, 1967, from Mr. J. L. MoOarrey, J~., claiming to ~ the at~mey the Joint Ventu~ G~up and ~vestorsI to the N~steade~. ~. ~Ca~?ey states: "..you~ "Notices" afo~eaid . are void ~ of no legal force ~d effect... ~e H~esteade~o ~sweF: ~e ~ight of olassi~l~ the legality of theiP UNoticesu ~sto wi~h ~e ~~o, ~d not with the atto~ey fo~ eitheF side. ~. McOar~ey states: U~e Joint Ventu~ ~P h~ ~lly complied with all the te~ ~d comities of y~P leaoeo.o. ~e Ho~steade~s ~ply: ~ee Par~~h 12-a of the lease, quotg~" above. The "drill~ opemtiml w~ ~t d~e _ with. due di!i~en~e. ~d ~the~~, no p~of ~ ~ offe~ ~:~.~t~:~._~mi~k S~d vas ~eaehed In d~illi~ ~ no p~of -the ~ate to-~e veil, stopp[~ eye.one, inol~~ ~e holdePs, ~ ont-er~ the p~ses. ~t ~e C~ the steade~s signed the lease they ~ info.ed ~ ~ ~ssee they would ~ve a. ceesa to ~e well ~d drili~ in~~tt~ ~y t~e. ~at was ~e ~ason fo~ the ext~e~ aee~ey the ~11 ~ d~illed~?? Wm. MoCa~ey states: "... it is the Jol.l~% Vent,? Group and its investors who have expended the ~a~ ~ne-~ neoe~~ to eo~letaly ~ill the well_~ the ~d" and ~hereafter ~d i~ ~ly tested.'..." _ ~e ~stead~s ask: If ~e wll ~s 'hll2 ~eted', . w~ ~ve not ~ Investo~ been info~ of ~e ~s~s of "t, ests"? ~~~ ~e people w~ ex~ed "~~ ~ have the ~t ~ the info~ti~ ~a~ ~ ~t~ fl~l.~f ~ have ~ ~he Ho~stead.e~s, w~ ~lsh~ ~e ~ lease toget~P, be~ in~~ of ~e-~aulte ef ~_ ~ ~ve m~y Investors o~ to the ~ateade~ Seek~ ~.~ton as to w~t-~a been g~/on for ~ past ~ ~a~ s~ati~, "... the ~ki~ lnte~st ~lde~a ~e pl~~ to ~ o~tte-e ~t~t wilI escalate ~ ~tu~ pl~a ~t a~e ~de eonOe~t~ the well a~ the leases.~ ~t ~.~ ~ the co~t~eeT ~ve the ~i~ ~te~s$ ~~ ~~d Mo~ey ~ act fo~ ~m in ~Is ~ the ~Joint V~tuPe ~. Mo Ca ~ey s tate $ z ~d its investoPs.... ~i~ all ~~n the~ ~~ to oil companies to d~ill ~ot~P ~e ~steade~. w~de~ ~ly ~e ~Join~ Ventu~ ~up', Invea~rs, ~ ~. Mo~~ e~ot be as naive NOTICE OF TERMINATION OF 0IL, GAS & MINERAL LEASE, Dsc., ~, 1967 believe any major oil company would drill in a unit in which the majority of the sha~es and Inter~sts had alPeady been . sold - in fact, a unit in which no one seems to know how much is actually sold and how much is left~ ~he Homesteaders point out that it is standard p~actice for an oil comp_any to do the d~'illt~ aA~d--~uoing· fox'an-tn, retest of fromli,/~'bhs to 7/Stha of the oil and gas rights. M~. McCarry states-: "....Recently.... meetings were held with a taJor oil company...." ~he HomeSteadePo ask: ~d ~ona~ ~sh, ~on Mitchell, and Perry G~een attend t~se meetings.? ~ese thee men, the Homesteade'~s have' been led to believe, constitute the "Joint Vent~e G~oup" who are supposed to ~ the Unit. ~e first two ~' d a~ ~ss~g* The' Homesteaders have not been able to fi~ men them ~o discuss t~s ~tte~. Nas ~. Mo~~7 been able to ~ind ~. Beona~ ~sh? HaS the Joint Ven~ G~up legally appointed ~. J. L. MeOar~ey to act fo~ ~??~ M~. McOarrey states: "....a major oil oompany that has shown interest, which again turned the p~ospect down, but advised t~t they would take ~othe~ look at it next ap~i~ if certain e~lo~ato~ wells now bei~, ~d to be, d~tlle~ on othe~ ~elated geol~i~al ~o~tions Justify a second look,...~ ' ~ H~esteade~s point out: If the H~ateader ~1 ~11 was d~tlled ~d ~lly tested", why is not ~e Info~ti~ ~rom this well of. ~ value th~:~t ~om wells bei~ d~ill~ ~ona~ ~8h_ be. ~ee~ing ~hiS:~i~0~~i'Jn-'-aeo~e-~- "~ companies as well aS fr~m the Homesteaders and Investors??? Why must the oil. companies wait a few mo~e months when the~e have already been thirteen wells drilled within a twelve mile' radius of the Homes-~well'~ P~om past experience the Home- steaders have formed a definite opinion rega~dins the credence of any statement made by a major ell company on its plans. Mr. McCa~ey states: "... with the Further unde~- standing that the "Homesteader's Group" is not perforated with litigation and discontent, sinee they advised us the Komesteade~ acreage is "too small" to Justify protracted negotiations or court proceedings." The Homesteaders repl_y: If M~. MoOarrey thinks _.tho Homesteaders' are "discontented" he should talk to s~ae ef Investors who have come to the Homesteaders fo~ informatl~al After ~ ~ without being gieves any fat.~ inforuati~ oma Mr. McCa~ey expect nothing but %ontentment"' f~om the Rome- steaders and the Investors? As to the "small~e" of the Unit: 3,500 acres, in the:right plies, at the right time, seemed, to 'J~stifYa highly'seO~et half..mil!ioa dollar hole in the ground. . ~,'L'Le~nard"~-~ stat-ed, for' pub-l(!eation.o~ June ZY, 1955, that M~. -MoOar~ey ask] for any suggestions ce the develop- merit of the Homesteaders' Unit. The Homesteaders reply that it i8 a little late for tho Joint Yentu~e Group to be worrying about this. In the past three yeaPs that they have held the lease they accomplished vePy little toward'developing the Unit. They have one "shut-in#(?) well for all the "g~eat sums of money expendedu. Belatedly, the Homesteaders offe~ this~ (1) If the Homesteader well was drilled to the Hemlock ~and and "Fully"~eoted# the~ the Joint Venture G~oup,'and. the Investors, should have ~:~ if it was a ~oo~ well or not, -3- NOTICE-OF Tl~l{I~TI~-OF OIL, 1967 's a sod W~ll then the joint Ventu~ G~oup and Inves. to~s ~'.- ~ : ............ oil ~om the R. ~n~ ~lh, p~aident of the T~i~ty Canadian ~.p~, ~a. ~ot.~ tn ~ ~' 2R, 1966, t,.u. of l~ iviilsbl~ tn o~e~ot~ qumntitiss, but it's well ~d ~t two gas cobbies ~e ~ggl~ ove~ p~ices for gas f~m ~e-[-~x~~ ..... (~ p~toa_of s~s in the ~oint Ventu~ Xnves to rs ? ) ed ~uld i~ioate tha~ M?. ~oh~s. ~tat~mmt~_..-~_.__ · ~adle ~e of ~ne ~eo~osx~k.. T" -:Z_2 Y2__ ~ ~ntatns hi ~is w~lt i~ioate ~' ~ht~s ~e well Is a good one, (2) If, after being "fully ~l~~" it was found tha.t we?e _ne oom~e~oial quantities of gas o? oil why were no~ :;'~'~ eve----~e could robot about itt I~. leOar~ey states: "'... the Joint Venture Group and-all investo~s would,be more than pleased to work with you any opportunity. '''' - r°n OVer the past year it has been impoa-'~.- .v _ , It ~s ~on ~OSOXDAo ~o x-xn~ ~- ...... ~.!'.'" ~ ~e d~s not have ~oh to aa2. As f t ......... · ~ - ~we.~-the e~~ :~. _ . 0 ~'-. -- ....... some. to the ...... ~ "V don't ~ow a thing. ~e Investors had a ab~t a 2e~ ~, _F___. 2. _..+ --ain soon o~ttee to act fo~ them." ~te~ a year there ts as ye~ no ee ~d as the Ho~steade~s sta~ in thei~ ~Notice and ~t [ off September, 1967, ... ~o~e ~ff~~ for ~ develo~nt of this ~ a~ ~na~ no ~ pA.,. . '~'___ ~l [e in ~~e of ~e ~ge~nt of seid H~esteade~ ~tt." ~ . loCar~ey si~s his letter as "Arroyo7 V~~ G~up ~d Investors" · ~e H~esteadera inqui~ ~ve ~ ~ ~rdon Mitchell and Per~ ~een appointed in e~{e of the Investors ~d Joint Venture Group, a-teade~s state:-t~t !a of 'this date the Joint Venture G~up ant ~ ice the InVo'st°~a'":~ve~ _~sw~ed:;th~i~_. ~ot _ _ .~;~. 'and.:J)~e~ent ' f '-.:- ....'--~to-- ~d no one seems to w th~ Vhe~ea~outs of its president, I'~. ~o .~ '.~ ._ ~ 'f '-~-[-L-~-~t him without success. M~. -Per~ Green, the thi~ ~mbe~ of Venture Group, does not 'ha~e anything worthw~le to say. I~OTIC]~ OF TI~NIiI~IATIONI OF OIL, GAS & MINERAL LEASE, Dec., ~, 1967 The Alaska State Depax.tment of Natural Resources., Petroleum Division, has given the Operator, Trinity Canadian D~illing Company, until December 3, 1967, (yesterday) to reclaim their plugging bond by doing one of three things: (1) submit plans for additional work, (2) have other parties furnish proper plugging bond, or (3) permanently abandon this well. As Far as the Homestea'de~a can find out, not one of these three things has been dose, Plugging bon~a are $5,000 for one well; $10,000 for two or mo~e wells. The well is cased with a system of valves at the top, which would indic&ts the well could be a good one. It is not eustoma~y--foP--a--d~-iller--toput-thousands of dollarl w.oFth of casing does a d~y hole. The local homesteaders know that there is gas in the well. The Homesteaders have heard many rumors about the drilling operator and the well. It is unfortunate that no cae can, o~ will, furnish any facts in the matte~. _ IN CONCLUSIOn, the Homesteaders state that they signed a lease, in good faith, fo~ the implicit purpose of h~ving a well drilled which if capable of production would lead to the immediate drilling of more wells in the Unit. The Homesteaders were info,ned that if the first hole was dry the. Lessee would drill at least two more before giving up. Among otheP verbal inducements to sign the lease the Homesteaders veme tol~ that they would have access to the well hole inform- ation %t any time, and that the Homesteader~ would be furnished f~ee gas if they would install the pipe. AN OIL & GA~ LEA~E is a fo~m of contract; and how w~uld the courts interpret a contract? ~he ~ule is stated ~n this way in-the case of Lemm v. Sttllwater Land &-Cattle Co., =~' a-~'. ~7~,-19 P-2d-~.785 --788.~---"In__the~ in~e~re.tatton .of contracts, the duty of the court is to ascertain the Int~t Of the ps,ties.......... To assist it in the performance of'~is duty, the court may look into the circumstances surrounding the parties at the time they contracted..., including the object, nature and subject matte~ of the agreement,.., and 'the pre- limina~y negotiations between the parties,.., and thus place itself in the same situation in which the parties found them- selves at the time of contracting." (Denman, ~ Patterson Ballagh Corp. v. Byron Jackson Co., 145 F. 2d , 9th Cir. 19~.~4). HOMESTEADER UNIT LEASE COMMITTEE In behalf of the 61 signe~s of .the "Notice and Agreement", Sept., 1967. cc: Xenai Recording Office -5- Letters: 3-21-66 8-23-67 4- 4-66 9- 7-67 11- 3-66 8-30-67 4-24-67 10-30-67 5-11-67 11-21-67 5- 9-67 Notes to 8-31-66 Files: 9- 1-66 6-28-67 9-19-67 11- 3-67 11- 3-67 Other: Permit to Drill Plat AD&GCC Bond General Power of Attorney Homesteader Unit Lease Committee Nptice & A~reement NOTICE- 11-16-67 Notice of Termination 12-4-67 Various newspaper articles FORM SA - 1B 125.5M 8/67 '~" MEMORANDUM State of Alaska DATE : SUBJECT: ~qJ 1 TE SIX LATH ROP BUILDING TO: Homes t~ader Unit Box 42 Sterling, Alaska 99672 and ~ J. L. MCCARREY, Jr. ATTORNEY AT LAW ANCHORAGE, ALASKA November 27, 1967 P. O. Box 1333 TELEPHONE 277-8342 DIY~S~ON OF M~NES & ANCHOP-,AG'1; the following Lessors and Top-Lessors of the "Homesteader Unit" stated to have signed the Notice and Agreement dated September~13, 1967: Gerald E. Anderson Mmrtha E o Andersqn * John G. Bradford * Ruby M. Bradford Charles D. Browning Anne Browning Melveta S. Carter Harold M. Clemry Morris Coursen Patricia Coursen George A. Diggs Rose M. Diggs * Charles J. Doser , Vernon Ho Enberg Alice I. Enberg * John G..--.Handley * .Elsie M. Handley * Florence Ao Harrison Eugenia L. Hayes James E. 'Hovfs Blanch Hovis Paul D. Huske Geraldine H. Huske J. Co Lawton Lue!la Lawton Kenneth D. LeVan Margaret LeVan * John F° McFarland , Aletha A. McFarland * Ray McNutt * Gloria McNutt * Ralph E. Morgan * ~aVonne L. Morgan * Leslie B. Naff * Theresa Naff * Walter Pedersen ~¢ Laura .L. Pedersen William J. ~helps Evelyn F. Phelps Norman V. Raney Jane Raney August F. Reetz, Jr. * Jesse Robinson * Nina Ao Robinson Roy F. Rose Blaine E. Saunders * Theron E o S.i-'.unders joseph A. Sipes Marian K. S~fpes james Sumpter * Stanley F: Thompson * Dennis Thompson Jerry D. Thompson Dorothy Mo Thompson Beverly Ao~ Werner * 'Thomas E. Wl',itaker · * Edith M. Whitaker George R. Woods Helen Mo Woods (actual signatures on mailed copy indicated by asCerisk) , with carbon copies to: Re Leonard Rnsh, Room 203, 515 D. Street, Anchorage,. Alaska Hugh Johnston, Jr., Room 203, 515 D. Street, Anchorage, Alaska We Gordon Mitchell, 3007 Arcti~ Blvdo, Anchorage, Alaska. Perry Green, 1810 Talkeetna, Anchorage, Alaska R.'D. Black, 1805 Bunker, Anchorage, Alaska Ted. Stevens, 825 West 8th, Anchorage, Alaska A. O.'McC]endon, 611 East ~2th, Anchorage, Alaska Waring BEtd]ey, 1639 Sunrise, DrJ. ve, Anchorage, A]arCk. a Art Lapp. i, 6820-34th..N.~., Seattle, Washington O. Ko Gilhreth~ Jr., 3001 Porcupine Drive, Anchorage, Alaska Ed Stroecker, First National ,Bank Bldg., Fa%rbanks, Al_aska Charles J. Clasby, Po O. Box 1'368, 'Fairbanks, Alaska ~ yates & Yates, 310 First National-Ely Bldg., Abilene, Texas Kenai Recording Office, Kenai, Alaska -1- J. L. IVlCCARrEY, Jr., ATTORNEY AT LAW page 2 Gentlemen and Ladies: In answer to your "Notice and Agreement" of .September 13, 1967, and "Notice" of November 16, 1967, purporting to cancel the Oil, Gas and Mineral Leases which you legally executed to Owen R. Smith as Lessee, which have been assigned to the Joint Venture Group, unless certain action was taken by December 1, 1967, you are hereby a. dvised: 1.' That your "Notices" aforesaid are void and of no legal force and effect, since the Joint Venture Group has fully complied with all of the terms and conditions of your leases and addendums; therefore, said leases are and will remain ii~ full force and effec't until at least the 30th day of November, 1969, regardless of any unilateral action which might be attempted or taken by the Lessors; 2. That it is the "Joint Venture Group" and its investors who have invested, ri~sked, and who have expended the great sums of money neces- sary~ to complete~ly drill the well to the "Hemlock Sand" and thereafter had it fully tested, who have been and now are doing all within their power to interest oil companies to drill another well, or to take whatever action is necessary to make the leases productive, since such action is their only. avenue through which they are ab,],e to re-coupe their investments and make your leases productive; 3. That the Joint Venture Group has been, and now is, exerting every effort possible to interest oil companies in.the Homesteader's prospect. · Recently, Within the past ten days, meetings were held with~a major oil company that has shown interest, which again .turned the prospect down, but advise~d that they would tike another look at it next spring if certain exploratory wells now being, and to be, drilled on Other related geologica! formations justify a second look, with the further understanding that th~ # "Homesteader's Group" is not perforated with litigation and discontent, since they advised us t. he Homesteader acreage is "too small" to justify protracted negotiations or court proceedings. · If you as a group, or any one 'persOnally, have a suggestion or a lead on development of the Homesteader's Unit, the. Joint Venture Group and all investors would be mo~e than pleased to work with you on any such opportunity. JLM/kk ~ '. ? FOR-M SA - I B ~-~ 5.:5M 8/67 MEMORANDUM TO: I'- Through: FROM: Oma K. Gilbreth, Jr. Petroleum Engineer Division of Mines & Minerais Jas. A. Williams, Director Dale WallingtOn ~ Deputy Commissioner Dept. of Natural Resources State of Alaska DATE : SUBJECTs November 22, 1967 I noticed your name on a paper recorded by the Homesteaders Unit Association. You were listed among the owners and interested parties in this well~ and I am wondering if this is through your connection with the Petroleum Branch or as an investor. 'DW'cm RECEIVED NOV ~? 1967 DIVISION OF MINES & MINERAL,S ANCHORAGE Noveuber 21, 3.967 The Bomes~eader Unit Lease Committee ~ox 42 Sterling, Alaska ~e have rece~vad a copy o£ two different documents which you have nitt~ ~ foll~ infomtt~ to ~r group in the h~e ~t ~ can prev~t ~ ~s~ersCndi~ e~t m~t ~cur reg~ding ~ ~11 which been drtlM by ~ T~i~ty ~~ Drfl~ ~pa~ ~d future Atteched are four copies of cae 0tl and Oas Couservati~ reguls- ~Lous which are now in effect. In addition to routine operating rep- nd 2061 on bll $1m¢in~. These u7 h of par~tculsr interest co yonr group if you anticipate additional developuent of the aommteader Unit. ~e v/II be happy co ¢lart~y or expla/n any of ~he regulaciouo which are not clear to you. As you probably know, ~he well which vas drilled by the Trinity Canadian Drtllin$ Company as the aommteadereo Unit Ho. 1 b never been properly plugged and abandoned. Prior to ~he drilling of the well, the operator rum!shad a bond to insure proper plugging and ~b~adon~at and we have not released that bond. The operator has been given until December 3, 1967, Co (1) submit plans for addtt/ona/ ~ork, (2) have o~her ~tteo furnish proper pluggtng bond, or (3)' permanently abandon thio well. ~e do not expect Co re/ease the bond unless one of these tbxe~ pro~=tetmm :La ~C. li~t.~C pass:fag on the lagaltt'y of who is th preseat..~leerie emmr, nay we ouagest that if any of your SToup anCtCtlmtes, re-en~ into thb: well in cbs near f'u~ure, you contac rids office 80 soon as :poosible and disgu~ ~ utter. No one v/Il be ~Cced Co ~ork on .or re-~ the ~ un/es~ a plugging bond hfs been fuz~isbed co ~he 0ii and Gms Conserved/on Cemu/Ctee. any q~~., we ~1 be happy to anovur them upon Very truly yours, Theuas lt. Hazshtl!, Jr. ~etroleum Supervisor -IoVeaber 16, 1967 I~terest Owners and Investors Sterling area, Alaska. Alaska Dept, of Natural Resources, Dept. of Minos & Minerals, ........ KNOW ALL ME~ BY ~HESE PREBENTS: REFERENCE is hereby, made to that certain ~NOTICE AND AGREEMENT."~' recorded in Book 28 Miscellaneous, pages 126 and 127, Kens! Rec°r~ing District. The original and counterparts of the aforesaid document have been signed .'by the following Lessors an~ Top-Lessors of the "~omesteader Unit"= Martha ~:E. Anderson John G. B~adford Nuby M. ~A-adfor~ Charles D. B~owning Anne B~i~ Melveta 3. Ca~te~ ~-ld M. Clea~ ~r~is Coursen Patric ia ~u~sen George A. Diggs Rose M.' Diggs ~arles J. Dose Vernon H. ~ber~ Alice I. ~aberg JOhn G. ~ndley ~sie M. ~dley ~orence A. ~rrison ~enia L. ~yes Ja~s g. Hovis ...... _Bta~ch_ Hovis, . Paul D. Husks Geraldine H. ~uske J. O. Lawton Luella Lawton Kenneth D. LeVan · Ma~gare t ~Van Jo~ F. Mottled Alet~ A. Mottled ~y Mc~tt Gloria Mc~tt ~lph E. Mo~ LaVe~e L. ~~ ~slie B. ~aff Theresa Neff ~alter Pedersen Laura L. Pedersen Wtlli~ J, Phelps ~el~ F. Phelps · o~ V. '~ey .... Jane -.Rane~ ....... ~.. ..... ,~,,,~ August F. Reetz Jr. Jesse Robinson Nine A. Robinson Roy F. Rose Blaine E. ~aunders The~on E. 3aundere Joseph A. Sipes Marian K. Bipes James 3umpter Stanley F. Thompso~ Dennis Thompson Jerry D. Thompson Dorothy M. Thompsbn Beverly A. Weme~ ' Thomas g. Whitake.r ~dith M. Whitaker George R. Woods Helen M. Woods contain approXimately 3,~60 acees of-Oas, Oil and Mineral' Rights Within the 'Homeeteader Unit", Sterling area, Alaska. ~OR THE INFORMATION of all concerned, Paragraphs 2, 3 and ~ of the aforesaid "NOTICE AND AG~ .~[E~T~ are hereby quoted= "2. AND WHERI~S, certain stipulations contained in Paragraph 12-a of that certain lease signed with Owen R. Smith (now deceased) have not been.fulfilled, we hereby declare, affirm and state that the aforesaid lease becomes null and void, and all oil, gas and mineral rights in said lease revert to the Lessors at 12:01 A.M. on December 1, 1967:~ "3. UNL~, on November 30, 1'9.67, there is a gas or oil well being drilled on' land .in-the H~mesteader Unit by or at the instigation of the Investors o.r Joint Venture G~oup, or that a contract has been signed With a drilling compan2 or con- tractor, .acceptable tc the' land-owners, on or'before ventume all' terms and 'conditions of this Notice-and: that :.Paragraph 2. above will be in full. force and effect on. December 1," 1967." I~OME~T]~KD. E~ UNIT LEASE COMMITTEE Box ~2 'Sterlin~ Alaska 99672 cc: Kenai Recording Office Third Judicial District, Alaska November 30 1967 Note ~o' the Files: Trinity C~nadi~ Homesteaders Ho. 1 On October 250 19670 Bob Larson and I visited the subject location ~n an inspection trip, ~e' found the location in a .-$enerally clean and level condition, All equipment had been removed from the location, There vere some wooden pallets, cable0 pieces of pipe on location and the mud pits hadntC been backfilled. The wellhead vas in place. ee~'~nated that the surface could be placed in order for abandonment by one or t~o days of d6zer work, .. / ~ 125.5M 8/67 .dq~ W OT~C_E :AND R. Leonard ~h, ~oom 203, 515 D Street, AnchoFage, Alaska Hugh Johnston JF., Room 203, 515 D 3tFeet, AnchoFage, Alaska W. Go~don Mitchell, 3007 Arctic Blvd., AnchoFago, Alaska PeFr~ Green, 1810 Talkootna, Anchorage, Alaska R. D. Blank, 1805 Bunker, Anchorage, Alask~ Ted Stevens, 825 West 8th, AnchOrage, Alaska J. L. Mo0arrey JF~', Lath~op Building, Anchorage, Alaska~ A. 0. IfoClendon,' .bll Fist 12th, Anchorage, Alaska WaFln~ Bradley, 1639 8unwise D~ive, Anchorlge, Alaska ~. ...................... _~i[.. ~ ~a~DZ~ Westwa~l Hotel, Anchox~4~e, Alaska ~:~/ . ~ ~nee ~d M~e~al8, 3~1 Po~oupine ~ive, Anchor,s, ~Ala8~ ~ Yatea & Yatea, 310 ~t National-~y Bi~., Abilene, Texaa~ Kenai Rooozqlin~ Office, Konai, Alaska And to an~ or all investo]~ in the "Joint Venture OFoup o~ Homesteader Unit~, located in Sterling a~ea, Alaska. l. THAT WHeReAS, we, the undersigned homesteaders, land-- ~wno~m, gaS& oil Fights holders, lesso~s ~d top-lesso~s of that t~eFtain dx*illinf blockuin the. vicinity o.f -teFling, AlaSka, [~onnnenl7 'known .as the H°mosteade~ Unit , find that theFe se~ 'I°z~.to be any. plans for. tho development of this Unit an no pePson,, or peFsono, ap. pear to be in charge of the manage- ell said HomoateadeF Unit.. ' · 2- AHD WHERe8, .ceFtain .stipulations contained_in Pa~a~ of' that certa~lease signed with.Owen R. Smi~ (n~.-d_oo~a~}- ~he~'~afe?esaid lease beeches n~X and void, and all oil, gas a ttne~al rights in said lease ~eVe~t to the Lessors at 12:01 A.M' ~, on Novembe~ 30, 1967, the~e is a gas oF oil well d~illed on land in the Homesteader Unit by oF at the inn,- of-the Investors or Joint Venture , .............. ~n beenbe? 1, 1967 -. that a contract-has been .signed with a dFillins company or ~ontFaStor'-acceptable to the land-owns?s, on or before NovembeF i30, 1967, fox* the d~llltn8 of said well. ~. XN THE ~ no answer is ~eceived to this Notice, we. 'the undersigned, Will assume that the Investors and/oF Joint !F~up. have 'accepted all ter~, and conditions of this Notice and ;hat PaFi~aPh. 2 above will be in full force and effect on DeCember l, 19~7- .~. AND I~IRT~0~, we, :the unde~igned h0me.steade~s, a Uniti: ' block until 1, 197'0;' we will vote fo?,: oF appoint, a homesteadeFs oP land-owners to contract tho necossax%r negotiations with an independent OF an oil company, to d~ill and develop ~ntt to. Ou~ mutual advantage. We Jointly and iSove~ally agree that the royalties accruing to cup combined hold- !trigs in tho HomoateadeF Unit bo paid equitably to cash and oveFy -1- .1. !essor according to the acreage that each lessor has, at this hims, ~nder lease or top-lease to t~_e Owen R. ~nith Estate or !bhe ~o~osteader Unit Joint Yentu~e ~oup. !! 6. I~ ADDITIOII, we, the undersigned, agree to the payment ~r remuneration of the attorney or attorneys who may act as ou~ iadvtsore or representatives in any way to further the drilling !~ud development of our Homesteader Unit by the ass. ignment to him, ibr, them, of a certain percent.age of one-eighth (1/8) of ou~ total ~.~ldings after December 1, 1967; such percentage to be decided by i~he afo~ementloned committee of three land-holders. iWill be by majority vote, and signatures of all thr?e oo.mmx.~_~.ee.men ~:..be. ~_~q..~i~ed on all contracts and legal documents and ~tn~onts to ~is oo~ttoe will be held, b~gx~g ~ce~e~ i~9~. ~e co. tree will occult wi~ the lana-o~e~s.~n ~e~ions ~d will follow the ~shes of the ~Jo~ity or ~ne za~ ~e~ ~d lesao~ as nea~ly aa possible, and will at all ti ~ot in t~ ~st interest of all the homesteaders ~ l~d holder. ~T-~ 8. THIS NOTICE AND AG~AE~T may be executed in any number ~f oountea-pa~t8 with tho same force and effect as if all parties !Signed the same document, and shall be binding upon the heirs, ~xeouto~s, administrators, successors and assign8 of the signers. · IH WITNESfl WHEREO~, the following parties have executed AND AG~KNT on tho dates as shown. 6~ 11- ~STAT]~ OF ALASXA ) TPII3 'TO TO 0ERTII~ that on the days shown above, Personally appea~d the aboveeigned ~rsons, to me ~o~ pomona deso'~ibed in ~d ~ .ex,uteri tho fo~egoi~ inst~en ao~owle~ed th t ~ey exeou~d the s~e as thei~ f~ee set ~d de~ ~TN~S ~ ha~ ar~ ~~tal Seal, Septembe~ ~~ ~blio ~ C~ission expires: ..J,- t ~0T~: This p~e con.ins signat~es of local ~esident lan~olde~a. ~o~te~rts are being sent to all out oF to~ land-creeps Involved~ 3001 mm ~epcenber 7~ 1967 ~iuity ~anadian ~rlllins ~o., Operator Hr. Rober£ A. Allen 4600 Hilaud I~:iv~ Dear Hr. Allen: ~ny a~ a~ o~ra~i~ mt ~ f~la~d by ~~r 3, I~7. H this c~ ~ ~ f~~lly ~lt to a~ ~ wil~ w utll ~u to call my al l~ an a~ittm% ~st~ ~m of ~ ~~ ~tttm ~h let us ~no~ ii ~e ~au be o£ aro, ~,~l~tm~ help. Vez~-truly ~h~nas R. Surslmil, Jr. htroleu~ Supervisor 4600 Hilaud Dr. ~ac o,. Texas August 30, 1967 Mr. Thomas R. Marshall, Jr. Petroleum Supervisor Division of Mines e:_~_d Minerals 3001 Porcupine Drive Anchorage, Alaska Dear Mr. Marshall: I received your prompt reply dated August 17, and I sincerely appreciate the information you were able to send. You wrote that Mr. Rush had been notified that'"the well must be abandoned or other operati~s or plans u~dertaken prior to December 3, 1967." Z am writing concerning the implications of this notice. That is, what will happen i~ case Mr. Rush does not abandon or undertake new operations, etc.? Is this a mere formal abandonment of the well? Thank you for your time and consideration in -this matter. Robert A. Allen RA' la RECEIVED SEP ,5,1667 I~1¥151ON Of MINES & ~INERAI.~ depot 23, Z~67 l~ear ~c mzd ~ ehe '~ of the re~sreuced Very I:rel7 Four~, ~omo a. Marshall, Jr. I967 larry (;reeu ou beh81~. a dim ~Mpy ,n,f ms .OLI ~ ~ ~ ~ ~~ 10 1964 mm Mr. Robert A. Allen Page two August 17, 1967 also submitted, It was represented to be a copy of the lease to which all of the mineral owners committed their acreage for the unit, although no signatures nor acknowledgements are affixed thereto. It is probable that' these instruments have been recorded in the Kenai recording district. The recording office is located in Kenai, Alaska. 4; We have no knowledge of the status of Mr. Smith's estate, nor any of his holdings in Alaska, We hope this additional information will be of help to you and we w£11 answer any other questions you may have, consistent with our security require- ments; O.K,G:jw Verj[ truly yours,~ ./! .,' ,, ~? Thomas R. Marshall, Petroleum Supervisor The £irs't meetings at xvhich some _~cnai Peninsula thered here with'son,, of the main investors in the . homesteaders laid plans :for'an oil well took. place in well, later traveled to the drillin~ site for an on-the- this log school house near Sterling. The group, ga- scene look at the site. .... , -,, .,~,.~, ~,.,~,, ¥,~.,,,~.-~,,,,~, ~, ,,. ,~.,,.,+,.,~,., ...,,,..,..,~, ,",~'? ,~ .~¢,.~ ~ c~ ,.~' ,,.~ '~ ~? ,'~' ,~ ,~-~ ~ ~ -' ?.)5 :':::':-:"':~..:: - . ~:;:;:::.t';;:.[. :.i';:?'[:. '.'.:: :'. · .. ':..:'.~::::::~.'.[. '.: ~'... "'~' . ) . ' ' ~ . [, ~:~.:.~:':: ? ::::. :."~j:: }i :: ? :...Jif: .'..:?t, ~:.': ?J h.. ~ '..~ 'i. :. ~: ~: '. .... " ' ~ .,~ O :~ ~ W ~';..:'.<-:'...:.:::.:+ :' .....:.. '.' .:.u~'::.::'-'.-..' :. :':: ;4:. , . . ' By ALLAN ADASiAK. ' ~.;... Times Staff Writer ~: The sluBB~rnness and patience from the Homes%eader Un[~ ~o { of a grou¢ of homesteadm~ in the If Owen " ~}!.: ihe Sterling area is finely go- Another; Ralph Morgan, ~' ~ ~ng to get them an oil well-- ged at his full growth of beard ~:':/. the first wildcat well ~ Alaska and remarked with a laugh, "I ~;:':':""'. io be drilled on ~rivate land. decided I wouldn't shave until ?:?.:¢':' ' ..... Organized by fo~er Texas we got the weli drilled." ,.....~;:,?L::.?:... .. ~tt. oil man Owen Smith, the home- Wal~ Pedersen, the fiat man :~' ::::? :... ~teaders have p~led their oil, to sign the m~eral rig. h.~ on ?"?::." ?; s: gas and mineral righ~ on 3,446 h~ land over to Smith, said t.h,a,t F:::'~;::!?'..::7 '""-:"::~::~'"" Jus~ acres of land. sMce then there has been" ' .:~:l:(:?::;~:~"' The decision to go wRh 'Sm~h wafting a~d hoping'. E'~ been ~:~.:?-.':..*':~:::::' ..............""?.. on a well came after he met time filled with anxiety," with them in the fall of 1964 -- He a~its, though, that ~h ~-~[..;u~::.~:::...: . .. drilling commitment. His wife, Lam'a, - describes ?:~[?:'~{~:~:.??' . .-, ':.:: :.:.:/' ~::{~.~.: '~ ~ : · ~ : ~ - , ,, ~ ' ' ' ,', h.':~{::?:~:?'-;..::~:'} .... ' ' .... , ?)'::'5 ,aa~ deflate con~,tment her~elt, as mo, e opt~m:tm ~ .......... . ........ ....:... ....: .. ~ ~ ~ . ~ · & · :::::::::::::::::::::::::: :.:? u.'.. :; :: ' '." ' - '' .' ' ' va~ wha[ the were wamn~ for th~n he, husband, while n~;mg ?L:,~:.::~...:,..,: .............. ::..>::'.'- ' ', '..- 5 ~ · y. . ~ · ,. ~ ,:.:: ....-:........:.:..:, .,":'.. ....:.::...: .... . The homesteaders decided to,there has been a Io{-.of leSter ,?::::;::(~'???f."7: .~::{~['~.-/~. .. ::"..- ''share and share alike," ac: writing and a lot of meetings (~:~:::.~'~}}[~i~:~:~'~?~.:(.:: :i:~'/::":'[[[. :.':[..::;,.[~: cording to Smiflu labour the well. ' }}??[/~:~(~:7~:::.i:?' J~.~:?.f::/~ :.:~..? :% ... ;... The homesteaders g'ave'Smffh~ Various par~ies,~ave be~m; {~?~:~/?:~17(~[~;~::?:(.. '~:::.:~F[::}:-(. '/?:~/':::'i'~.':'::. a f)~'+~C oil, g'as and minerall teres't~ m ge~ang - ~nerat ~:::?.::???~;:;~{?:'~:?:..'::..:'?]:::~.::).: ~ :d~L:.??..: ~o~' ~,~ ,,, ;~ ~,,,~,m ~,~, .~%~.__,n~l~;l leases on the ,land since 1957,~ ?:?:'~:~5'-~::'....... ...-?: ;-:-..... '":~7~.~:2:'::?:. ::. ~ ' .: ::~:~ :;~: ::/: .:':' .... :' ~ei-~'are to "receive o~Wal~ says, bu~ no one be,ore ?:?::~:::?[;:~}:?)::'.:~'::~"-L' "::. [. .):.(--::].:. :. . ... .. ~~ ~-,~,,~tion of anvl Smith every wantea .to make a ..[?.??:? ."-::'- ? '..: ...... :: ::.:.:.::'../ ¥¥':?::--:~ :: '...: ¥- :::".F"::.' :"."- Suceessr~l wellS. %wl.~ten d, tl~ ~ c, ~ · ~: .,:....::~:. : ......:.~::.~:.::..~...:..:...[.,' ,-:. :[ .'.:::,...:.,': :...":...'.:. - Profits, they decided, .wouldl Soma of the homes,t~aae~ [:.::;'~:~.~.:?:.' '::.:'::}.-'"::'-':':::)':}:}L.'": .. -'?':.;(:'..~' ."' ~ be so~t ua accor~ to lhelhisw~e says, have e. ven mougn~ F?:--~'L ::'" :.:: :..:.~....~-.L:"' ',.' . . '::' ':: :..::': . .: number 6}=aer~ ea~a ~ome-',abou~ for~jng a.umt~ze% !ease :~::.[..".l,:" .....'.:).-. '. " :"" ': ':'"": "~": ' '1' $2' .'tender contributed to the ,lock. before OW=n came alone . · . ;~;;~i: :t: ..'.-:." " ..'. :i...:'.'L'. :.'/'.'::.:,'.' '.. /.'-." :" -' ~e.~-,,S ~ "~= ~,,=+h~ ,a-~ ~'+~{'h~,~a .... and[bu+t ~ no:one. ,ever' made. that_ ~Ii- t~:.:~.. '. .:-:." : :.'" ..-'"" - . ': .-. :. ::... :'.. ': '.. -: '.:' '~ - ~ drLiin~ operation took .ome~~ o ' ": ~ ?, · ' ,.' b:?f.:~f:::.. :::-.:~: . -:. ~"~ .;~;~;..~j2'.ZLL, "" ~ ......... ~:-~- ...... n;+;~., C~olo~S¢' for the grou.o., i-s ................ ............... . - ' Warmg Bradley, a.komey ~s J.. ~Z~:~fi.. ; ~:'~¢a A~ We~[ dense arrangemen~ was worked[ -. ~ , , .., ~> ~ · .-~ ~. McCar, ay, ~ r, ', out among 27 homesteaders, t~ ~ r ' - ..... · .Smith, me,while, put togeth-] ' ..' .... ' ..... '-" .er the Homesteader Unit Joint ' : ' · ..... - ......... o ~ ~ ''i' Venture Group to provide' the~ ' ~ ~ '~o ..... ,'-- ', : - un~erCapital' way.he'ed to get the well ~(.,/~C:3~x.~,.~ v .... , .... .... .... ~' ..... --~-~; '"' ~"Y ~.~',~x' ' ' ' ~ ...... ~w~~'' t' ~~' ' ~,. ~...,.~. ,,x,, ~,- ' ' - ' ""~ ' ' ' ' ~ ..... ~:e.::j V,.v,.h. in me group besides ~-;,h , ' ' ;::c~y, The quM<e was recorded at are Perry Green, son of local TOKYO (A7~ -- z strong,parts of Alaska on Good furrier David Green, Gordon ~ - .'. . - :armqua.,e ::-:;:.k a wide area i934 reg;~ee:ed 8.6. ~:50 a.m. Jap~ t~e. ...........'.~¢:~ · and Leonard Rush, of Norti~ O.xna oi;>ovla" ' and Men- The at, teenier was in tho :,,/tx-':. ~,.,u .... official Soviet news age~- ' president of Trinity Drilling Co. goiia t~day, ..'.c ~apanese Me- eh~ian - ~ ....... Mu,,o ........ ~y _a~ repa~ed the quake TrLnity is presently set~ing up t,:orological Agency reported. ~,de, ~..'3a northeast o2 i.::.. --..::.r-d-a~ about two se~n~ ~he ~'~ that wilt spud Lx the - - ~ -Moscow, but s~d it regis-': ,~s uapan~e correspondents m Hulun, a sparsely popu,at .... v...- ..... ,,~m~s~e,ae, u, .... No. · gion. 'il'., lake is fi~ nor.. .: . .. ;harsh z0, right in ~he heart of~ Pekhxg smd the quake cracked Manchuria, about ~63. . .t...a ;~ on the 12-~Mt ~e: oil exploration ac.tivity on the walls ann mpp:ea furnitm'a kn ~norZh of Pe~ng. . Scale. Tms wo~d be equ~ to rna: Kena[ Peninsula~ ~he Red Chinese capital. ~ .......... '" . The qu~e was rec .................. 3.~ on the Richt~ scale. ' ~m~t,t mamtams that it was, The a~encv here reaorted tl~e~University of Califorp2a i.: 2 ark- ""~;o,..;ever, the Russiar~ sa:.d the '~ ' ~.~ ~ '~ ...... the ~ ~.. ~.-~ ..... ,,om~.e~,,~,~ "beii,d ::t me on!clay as from 6 to 6.5 ox ~ .... . ...... quake was of Lnagnitude 7.3 . . · :. - ,.~-'~ .... ~'~' ,.u.....~ can;areal ~ tan a~e* ~hat made Lhis ,tall .. ..... ~e. the Richter .tale, strong anGus-ri!Richter scale. The se,sn.ox,ai~,s.';'; · -.rcs; . -' ........"-- there ~ut the' center as probably of Knife:. '-' a large cry 350 whc remember ~'~ ...... of PeMng. ~,,~, :ac2' we:~ ofigi- earthqua~.-e th:~ cavas;~atea some,~'h~:a ~ Manchuria. ~miles so~ , nelly promfse~, well withM a year. ~V. ' .-- ' "'~ ..... ?'-'* ' ~ ' equipment at the site,_ they ai!i appear happy' that now, a year" '-'-'~ .-, /-* and a half after their ~:-4--.~ ...... ---,-' ....... m f~z~'> - mce~m~, t!~n~s are oe~,ng un-I ~ ~'~ ~,~...~ der way .... Bu~ the homesteaders won't W,~SmNG,ON" ~ '~-" ~ ~ ' T (Ap) ~ The' as many as 2~0, which are sold FDA s~6 such '"'x ...... -.~.-~.~,~ ann ~et Smith ~ .... '~* .... ' · o,o~ that he is be Food and Drug Administration ~der some 500 trade names many other antibiofi~ ~2nd his promised schedule, announced action today to re- ~d made by more than 70 tigris have not proved e;fec:ive. On a recent v/sit to the si:.e~ :-" .~..~,~ ~ .... ~ ...... move from the market hundreds nan~acturers, will be affected, It said ~t based its ac2ons on . o~,~ o: ':.ncm, .~,,y ~, ....... the spokesm~ said. lack of :u v suzs,ant~, mca:ca. pointe.a ..... dri!IMg location ~" antibiotic lozenges mhd other ..... an:[biotic preparatiSns, on B~tail sales of tb~ products evidence ~[' effectiveness, ti:oug:: ~tm.:e .... il to Mm, "W~ -,rounds they are not effective are estimated to ~n about ~25~ '~' ' .... ~ ..... *' '- "~ .were g'o......~ change '~ ' ;2.' ..... >~"~. sore throa~ as claimed ~llion a year. , , t.:-.- - : .- ' ::. :2air labeSng. No ~st of the'trade names ag- the m ...... ~. ~--== .. ~;,o~e~,n,n said the ac~n fected' by th~ action was avail-~ i~ was . .;lathed that before ~g/~c~[~'~7 e~, ........... :xdc;:~ up to one. of the re'est able but 'spokesman said "Su-~the K~.:.uver-Harris Dru~ how, ~,',,,,i~;'y .~,,,~e~!ng, drug removal orders crets" is one of the market,Amca~ ,, ~ .... ....... ."~- o,~ 10~.~" ~.,~H, ~.~w .... ~~.,.,~ Anchorage and vM[::[~y: the agency has ever issued, cadets. , m'e,~ara~ions conmk~- usc Fair ...... ' ' ' ' ~,,od~,~ Wednczdq/, Al, a.;tibiotic lozenges sold The series of fern' orders will quircd , wkh gus~y winds dim: ....... - ,..;:,2.Gu; prescription and pro- apply to some of the prodt~cts in~ f'~,' a,:,::~ioiics ;~nd fi:~:' Sa`c: lng tonight Low toai~::t 0 meted for treatment of sore imme~ately and to some attar dcz,v..avcs ~e g~vc:; FDA .-.:'> mar~ctl,,o clearance on a bmch- ~o 10; Mgh Wednesday mid throats and throat pains ass~ a 3~day period, unless the man- '- ~vs. ,n~xr'~'~' Monday 2g; over- J cia~ with coughs ~d c~]~ ufact~ers file a valid objec~on by-batch basis to prove., safe:y. 2,.,. ~a~ iow are to ba t~en off hhe m~e~. ~ tMs Bter~ ~d requ~ a and ~ficacy. These nyc a::5- .~ ~ Pr~uc~ ~t~at~ .~o nmb~ pub~ hearing, bio~ are penicilhn s~rep;o.my- RECEIVEU - 'rHU,qSDAY'$' FORECAST ~'~l~' o~~ & MiNE~LS High tempereture mid 60s ANCHORAGE LOW tonight .upper 40s ,, PRICE 10 CENTS IN ^.NC3qO t~ AG~ AND VICLNITY independent Group Of Alaskans Share In Fielcl Ovrnership An oLl strike and two ga3, strikes at the ltomesteaders unit on the Kenai Peninsula were reported today by the lung's driller, Leonard Rush of. I?rinity Canadian Drilling Co. ' "No-tests have been made yet itc see i£ oil and gas are avail- able in commercial quantities," he said, "but it's a damned J good calculated guess that we J have a pretty b~o well. Two gas companies ah'eady !have expressed interest in the, gas from the well and are hag- gling over prices, he said. Drilling is still going on, be- low 12,000 feet, the drilling com- pany president reported. "We're in the same producing formation that's in the Swansoa Rkver area," he said. The Home. i s~e~der~ unit is near Sterling, i some 15 miles from the Swanson !River fields. : Tests will be conducted ~this week and next week, Rush said. There is room to drill about 24 additional ;veils on tim unitiz- :*. ed lease area above the geologi- cal structure in which the Home- steaders' unit was drilled, he said. Dual completion wells are planned, to take gas from thc-: upper zone and oil from lower. Rush termed the. drilling sults "ericouraging," and that all interested parties are "very enthusiastic." .The Homesteaders ~nit ma:-ks a dual "first" in Alaska oil de- ~'~p'~6fi't'Y'It was drilled on the ;first unitized lease put together [i}~'th-~-"~[ate~-' Homesteaders whose land is involved receive :a one eighth share of produc- :tion. . The "joint venture" nature [the umt ~s' also an Alaska hrst, according t-o'-R'~'shT · "This is the first time that private 'i. nvestors ~i'n~ludin~" baku- b'~:s]' butche'rs-and grocers, have ihad. an opportunity to partici. ;pate in the ownership of an oil i well," he said. ~ Tim $500,000 drilling job was !spud on April 10. and a note of sadnea part of the r~ ... they are !action of the :Alaskans who more than 100 learned Wednes- !day that their well, the Home- ~'steaders' unit at Sterling, had !hit oil. ~ ".There's no other ieeling like i/t," James Simpson of Simpson i Sausage Co. in Anchorage said today with a laugh. "Six people in our neighbor- hood who. invested 'in the well celebrated and :talked it. over llast night," he said, "but until I see oil in a barrel, I'm not going to make any plans." · Mrs. Walt Pedersen of SterI- :rog said at first that she was' not going to "count my chickens before they're hatched," too. But. then she warmed to the'I, prospect that well tests would[' show a strong oil flow, and said, "I'm going to get electric heat' ~ my house, instead of that old 'barrel stove." Some 27 homesteaders like the . Pedersens pooled the oil and gas :.'ights from tt~eir homesteads to form a unitized lease 'arrange-~ merit for the well and conse- quently will receive royalties on :~art of the production. "A few of them plan to leave ~aska," she said, "but most of tlaem are going to. stay here and im~)r6ve what they have.,' ,u:s. 'Pedersen said She ._i~o "take a trip outside to see :uy folks, when we can afford .." She has been "outside" once ::, the past 20 years. Anchorage business man Per- ry Green said he. had been; "coming down here two or three' days at a time during the past l month, hoping and praying/ was like a mothel' hen." · . "I've been 9piimistic aboui this thing hll along; .Now that it's here I just. can't believe it,': he said. "My'wife has plans-- but a new will is about the 0nly plan I can 'think off'now:'"" . Both Mrs. Pedersen and Green spoke enthusiastically about the improvement to the local econo- ~w-lfidfi-~-h-6' h~' 'oil" ~nt w/Il bring. And both noted with sadness that Owen Smith, .the. former Texas oil man who. 'arranged .for the:well,, setting up the home- steaders leases, had. died in early May and "'couldn't be here to see the'well. come.' in.:": - ~.-, ~-...~,~.,.z: ~-'- ........ .z .,.,..- .................... RECEIVED DIVISION OF MtNE5 & MINP. RAL~ ANCHORAGE ~ ~, ~967 Robert A. Allen .- page 2 At intervals ~uring the drfllin~ of the Romest~der No. 1, there were ~eat ~nts of pr~ttonal publicity released through the newspapers. ~e well ~as drilled as, a "tight hole" and no veri- fication of the information ~oas possible. The handlin8 of the operations on Chis test, reputation of the operators, subsequen~ history of 'the deal and the empty briefcase suggest yo~ need an attorney J I surest you contact lit. J~seph Rudd of Ely, Cuess, Rudd :and Havelock, P. '0, Box 1332, Anchorage. The above su&~es~tons and opinions are my ~ and do not necessarily reflect the opinions of the Department o£ Natural Resources, O/£1cial information ~ill have to c~e from the Petroleu= Branch, Division of Hines, and llinerals, Sincerely yours / cc - Nr. Thos. l~rshall /~//" PetrOleum Geologist ~001 Porcu~ine Drive-'- Anchorage,, Alaska 99~I Department of Natural Resources State of Alaska Ju~e au, Alaska DIVIStONOI MINES & MINEI~L$ AI'~H OI~AGE, 4600 Hiland Dr. Waco, Texas August 7, 1967 Dear Sir: I have been counseled that you may be able to be of assistance to me in the following matter. If not, could you please either refer this letter or send me the name of the proper authority who can an- swer my questions. I am a senior law student at Baylor University here in Waco, Texas. My wife is the former Linda L. Smith, the daughter of the late Owen R. Smith to whom I will later refer. In 1964 0Wem Smith, a resident of Anchorage, Alaska, organized a group of homesteaders whose leases with. some major oil companies had run out. "These homesteaders (some 27 in number) conveyed to Mr. Smith a five year oil, gas and mineral lease on some 3,500 acres located on the Kenai PenlnsuIa. Sometime in 1964 or 1965 Mr. Smith, after setting up a Joint venture group, agreed with a Mr. Leonard Rush that Mr. Rush would drill the well. AcCording to our reports, which have been very limited, Mr. RuSh drilled the well, known as the Homesteader Unit #l, to a depth of approxim~t.e~ly 13,..000 feet. Shortly before the well was completed in May, 1966 Mr. Smith died. At the time of Mr. Smith's death we were aware that Mr. Smith had With him a briefcase containing pre- sumably important papers. When Mr. Smith's body wasreturned to Tex- as for burial the briefcase without its contents was also returned. Although several attempts have been made to discover from Mr. Rush what the status of Homesteader $1 is, no reply has been received. Nor do we k~ow th® status of Mr. ~Smith'~s estate; that is, whether there are any outstandimg debts and/or whether there has been any administration of the estate. Our only source of information has ..been the articles which I am en- closing ~d which were printed in the Anchorage paper. Mrs. Smith, Owen Smith's widow, who is now living in Georgia, has written Mr. Rush in an attempt to discover what the status of Homesteader #1 is, but as of this da~e has received no information. (2) The questions I would like answered are these: l. ~hat is the status of Homesteader Unit ~1 located on the Kenai Peninsula? Has there been any production as of this date and, if not, does your office have any facts available which might evidence possible production in the future? . If there is production or production possibilities, what pro- cedure other than Court action is available to assure that the proceeds, if any, from the. well are properly distributed? . Does your office have any records of the lease agreements on the exploited or un-exploited property? If not, who should be con- tacted to get copies of the various leases, Joint Venture agree- ments and other contracts involved in the Venture? ~hat is the status of Mr. Smith's estate? That is, has there been an administration and are there any .outstanding debts? I realize that some of these questions may be outside the scope of your records but ~ info--rich which you can send us will be greatly appreciated. My Wife is not the only heir of Mr. Smith having an in- terest in the status of the Alaska property. Owen R. Smith, Jr. and the fomer Margo D. Smith, both children of Mr. Smith, have urged me to write in a~ attempt to uncover any information which might be avail- able. Thank you for your time and consideration in this matter. ~~~,.~Si y yours. 00: Mrs. ~wen R. Smith Owen R.Smith, Jr. Margo Smith ~oodworth ANC~o~OE , ]My 11, 1967 ~e w~ll be heppy ~o dL~~ t~ts maw~r wl~h you or awy further sm~ you has ~en properly pluS~d a~ aba~oned. 515 D STREET ROOM 203 ANCHORAGE, ALASKA ~AY 9, ~967 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99504 ATTENTION= DEAR SIR= THOMAS R, MARSHALL~ PETROLEUM SUPERVISOR RE: HOMESTEADER No.1 WE RECEIVED YOUR LETTER OF APRIL 24, 1967. THIS WELL HAS BEEN TURNED OVER TO THE JOINT VENTURE GROUP FOR WHOM IT WAS DRILLED. THE JOINT VENTURE GROUP DID NOT EXPRESS A DESIRE TO HAVE THE WELL PLUGGED. RATHER, THEY INDICATED THAT THEY MIGHT MAKE FURTHER COMPLETION ATTEMPTS ON THIS WELL. TRINITY CANADIAN DRILLING COMPANY DOES HAVE A PLUGGING BOND WHICH COVERS THIS WELL. HOWEVER WE HAVE NO AUTHORITY TO PLUG THE WELL. THIS AUTHORITY COULD ONLY COME PROM THE JOINT VENTURE GROUP SINCE THE WELL AND LEASES ARE THEIR PROPERTY AND NOT THE PROPERTY OF TRINITY CANADIAN DRILLING Co. SHOULD THERE BE A QUESTION AS TO WHO WOULD BE THE PROPER PERSON TO CONTACT IN THIS MATTER WE WOULD ATTEMPT TO BE OF ASSISTANCE TO YOUR DEPARTMENT IN DETERMINING THE PERSON WHO WOULD BE IN AUTHORITY. PLEASE BE ADVISED THAT IN VIEW Of WHAT HAS GONE ON AND ALSO IN VIEW Of WHO THE OWNERS OF THIS PROPERTY ARE, TRINITY CANADIAN DRILLING COMPANY DESIRES TO BE RELEASED FROM THEIR BOND. MAY WE HEAR FROM YOU WITH REGARD TO THIS MATTER. YOURS TRULY~ HLJ:Jc TR I N I TY CANAD I AN DR ILL I NG CO. GENERAL HANAGE~ CC,* UNITED STATES FIDELITY ~ GUARANTY COMPANY ATTENTION= BOB HILTON 746 ~l~'" STREET, ANCHORAGE, ALASKA 99501 RECEIVED "'PI/ 1 l i 1967 DIVI,',',SION OF MINES & MINERAL~ ANCHORAGE the ioe~~ ,~lee~ up by Septeeb~ 3,, L~7. Trinity Canadian Homesteader t s [~1 On February 28, 1967, I inspected the location of the subject well. Snow was approximately waist deep, and no vehi- cles had been in er out since late fall. The dog houses and mud tank are still on location spread and other material is scattered around the location. Due to depth of snow, only the bleeder valve on the well head was visible and the well sign had been wired to the bleeder valve in recent weeks. It is obvious no operations have been conducted on the well in several months. / DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS / 3001 PORCUPINE DRIVE--ANCHORAGE 99504 December 16, 1966 RE: November Report of Operations, Trinity Canadian Drilling Co. Homesteaders Unit No. 1 Trinity Canadian Drilling Company 515 D Street, Room 203 Anchorage, Alaska 99501 Gentlemen: Attached are copies Of your November Report of Opera- tions for the subject Well which have not been signed. Please have the forms executed by the proper person, and return to our'office. Very truly yours, Karl L. VonderAhe ~V/jm4 Eric losures RECEIVED OEO g8 1966 DIVISION Of MINES & MINI~RAL~ ANCHORAGE NORTH TO THE FUTURE IN 19.671. iror,~ No. El'fe,'ti~r: July* !. STATE C~ ALASKA OAS C~RVAT~ C~ISSION LESSEE'S MONTHLY REPORT OF OPERATIONS ~ ....1 wm.L Oiz.w.. o~ ~VBBID , Well s~u~ :n on Sep':ember , No pre ~sur~s record,~d. I I I ! , B&~ orr M. so stub) ird. NOTK.--There were ...................... runs or s~les of oil; M cu It of f~aq sold; ...... runs or sales of gasoline durinl the month (Write "no" ~'here applicable ) ''NOTE--Report on this form is required for each calendar month, regardJe.%f~ ol the status of ol,t.r.,tJOnS, ~tr~d mu~t be flied in dupiiente with the Division of Mines & Minerll.q hy the {ith of thy .~ucceeding re(ruth, t.des~ o~her~J~P directed. '~ truly Earl Lo Vouder-Ab ELV/J,,d _ 1966 Houos~s Ilo. I are L'aeeived add r. hf, o s~.atu~ ,fa umde publ~. b mede m~ ~lou ~ of bhe sub~e~t location ouraa wek alp and inquired sbou~ you ~ Sim11'8 fagtll~les, bus were unable ~o p~eooe advise. Very truiyyom*s. ~bomas I. ~agahall, PeCrolm Superv~or 515 D STREET ROOM 203 ANCHORAGE, ALASKA Nov. ~;, ~966 OIL AND GAS CONSERVATION COMMITTEE 300] PORCUPINE DRIVE ANCHORAGEs ALASKA ATTENTION: MR. THOMAS MARSHALL GENTLEMEN: ENCLOSED IS THE COMPLETION RESORT ON TRINITY CANADIAN DRILLING COMPANY HOMESTEADERS ~1~ INCLUDING STATE FORM e'7, COMPOSITE MUD AND SAMPLE LOG~ ONE SEPIA AND ONE BLUE LINE OF loEeS., AND WELL HISTORY SUMMARIZED. WE WILL CONTACT YOU REGARDING FILING TEMPORARY SUSPENSION FOR THIS WELL, YOURS VERY TRULY~ HLJ: TRINITY CANADIAN DRILLING CO. RECEIVED NOV ? 1966 I~IVI$1ON OI~ MINES & MINEP, A~ ANCHORAGE SUBMIT IN DUPL1C~~ ~ , ~TAI~E OF ALASKA !- (See ~;~;r m~ structions on OIL AND GAS CONSERVA~ON 'COMMISSION ~ r~verse side) ~ELL COMPLETION OR RECOMPLETION REPORT AN~ LOG* ~ WELL OVER T~rinity Canadian Drilling Company mW~,ON O~ "MI~E$ & MINE~9: W.L~ NO.:: -" ADDRESS O~ OPERATOR ~~ ~j Effective: July 1, 1964 ~'~ ~ LEASE ~si0'N~s~ ~ SERIAL' ~o. IF INDIAN, ALLOTTEE OR T2IBE :NAME %15 "D" St., Room 203, Anchorage, Alaska 4. LOCATION OF WELL (Report locatto~ clearly a~d in accordance with a~y *tatel requirements) Atsu~ace~ 660' FSL, 1980' A~ top pro~. Interval repo~te~ below l~ total 14.PERMIT NO. -~ Same as avo~ 66 - 7 4-g10-66 17-13-66 / 9J3-66 - Dry FEL, Sec. 15, TSN, R9W~ SN DATE I~SUED ELEVATIONS (DF, RKB, RT, 20. T0~AL DEPTH, MD & ~ HOw MANY* ~i3,890' ~-9,760' 24. PIiODUCINO INTERVAL(S), OF THIS COMPLETION TO~, BOTTOM, NAME (MD AND TVD)' 21. PLUG, BAOK T.D., ~D &: ~ 22. IF. MULTIPLE COMPL., ,23. INTERVALS ::Wildcat :'~ OR. AREA~ Sec" 15, ' . { :, :ROTARY TOOLS 'No pr~u ng interv, s ~6. TYPE ELECTRIC AND OTHER LOGSLRUN' I_S,~7- ~on~c 28. CASINO SIZE 20" SIZE DRILLED BY .27,-5,a' j: ,~ ' ' . CAR~E TOOLS : : :25. Was VmEO~6WaL 8UBV~Y ::MADE' " ' {,- 27. 'WAS; WELL CORED CASING RECOR9 (Report all stri'~g_s,s~t~ i~ well) ~55' ' ~ t : ~"~ ({~ [[::'500 SX Cemen{: Circ. [ NOn, . - ,, ~CID, SHOT, FRACTURE, :CEMENT, SQUEEZE, ETC.: .-~ t! l! tl ~ ' H . -. .... 31. P~RFORATION RECORD (lntqrval.,/~.ize and n~mber) 9288-9302-~ He.es p~r foot- A' Dia.I ' ,' :" 9320-93~0 ~ , ~- 33.* :: _( (-' / PRODUCTION DATE nRsT rRODUCTION I ~'RODUCT~ON METHOD (Vlo.,i.g. ~ae li~t .,,,,,..,.--.i,,e a,,a.,m,e ot V.~) ~ w.~ $~,~us .(woRthy o~ DATE OF TEST HOURS TESTED CHOKE SIZE. PROD'N. FOR OI~BBL. ;GAS MCF. ~ATER--BBL. - } GAS'0iD RATIO ..... - .None Neglible '122 BWPHI- ~ .,, tO PSI - 0 - ' { "~-~> I None { - O' { 122 BWPH, I .NOn® ag. ~S~OS~TIO~ o~ GAS (~o~$, ~ae$ ~or~el, ~e~te$, ere.) ' ~ ' TEST WITNESSED, BY .~ ' Vent ed ' ~: Ralph ..Nay-Woodland ~. LIsT o, ATTA~MENTS ' .Equip, Co. None--See reverse side re. test. -- ' ", :' 86. I hereby certif~ that the foregotngOand attached information is complete and correct{ as. determined from alFavaHable records . ~ *(See Instructions and Spaces for Additional Data on Reverse Side) DIVISION OF MINES & MINERAL~ ~ ' INSTRUCTIONS Gen¢i~.· This form is designed for submitting a complete .and correct well completion report and log on all types'of lands' and leases to et , or boffi~, pursuant to applicable Federal and/or State laws and r~o,,lation~. A..~. .......................... . ,.. ther a Federal agency o --'-subm.~l~ted, particularly with regard to local, area, or regional ore'urns and~r~ ~t~'~h~l~'~[n~s---~-ru-c~-,°-ns c°nce...rm, ng-me .us.e of this form and t~e nUmber .... · ' , . _ ~-_a~_g~.~, ....... ouuwu oeiow or Will De:issueR D ,~) " ' .... and/.(l~ State ofltee. See ~nstructions on items 22 and 24; and 33, below regarding separate 'reports for separate eompi~tio~is; ' y, r may be..,obtalned from, · :: If nolllllled prior to the time this summary record is gi!lfinitted, copies of all currently available logs' (.drillers, geolog!s, ts, ~ample and core analysis, all tYPes .elect~q. _.~-ti°'nsho~{i~be~d pressurelisted on~thisteSts' form,'and directioni~lsee item.35.surveys' should, be attached hereto, to the exten~ required, by applicable Feileral and/or StAte laws and reg/iI'atibns. ~ "l~em'"Jl~, If ~there b~re no ~appltcable S6ate requlremen~ "' ' o :-: 7: . . .. ~...~. . '_or Fel~l~al office for specific instructions. . .' loCations on Federal or indi~tn 'limd should:, be des(~ribed in- accordance with. Federal requirements;· · : .:,l~em .18: Indicate Which elevation is used as reference (where not otherwise shown)'for depth measurements given in other s aces'on thic:' i "' · P s form and in any T~-LI~,m~22 a~d 24: If.this well is'completed for separate production from m~re than one-,interval ~one (multiple completion )7, so state in item ~22, and in. item 24 show interval, or intervlils, top(s), bottom(s) and name(s)- (if any) for only the interval reported in item 33. Submit a sep.~.rate repor~(-page) on this form, adeqm~', for e~ch ,a,d_ditional interv, al to be separately produced~ ~showing the additional data pertinent to such interval. ' - · ' - - ~ · . .._ I~,m 29: ~acks C. ement,: Attitched supplemental re~ords for this well shoUld show tlie details of any multiple stage cem6nttng and the 10c~gion of the,~ementin,~( ,., Item 33: Submi~ a' separate completion report on this form for each interval to be separ~/tely produced, (See instruction for items 22 and 24 above..) r.~ _ 37. SUMMARY OF POROUS ZONES: ~DRM&TION ~ SHOW ALL IMPORTANT ZONEs OF POROSITY AND.CONT~N~s THEREOF; CORED IN~ERYA~.S; '~N~ ALL DRILL-STEM TESTS, INCLUDING DEPTH INTERYA: TESTED, CUSHION USED, TIME TOOL'OPEN, FLOWING AND SHUT-IN PRESSURES, AND RECOVERIES TOP BOTTOM DESCRIPTION~ CONT~TS, ETC. C . 9288 ~9320 961~ ,964E 93'02 93'~0 , 96'36 9666 9106 4 BWP?.i -o'i,,,.a'b Test .. i~'c:gli~s~l,.~ amount of- ~as 4 BWP}-! Swab T~st. , .-. ;-~. .... ~, ameunt of gas 12~ B~PH Flbwing ~- .. ........ ~r~. b~anket'- 2'70 ' GCM ' ::- No pre'ssur~s-r.~dor,,i~· '7. Caseing riSS'ted ~50'0~ for 9 . : .. NAME ~-lease Date .10-3-68 DI4-12 State of Alaska Department of Natural Resources DIVISION OF MINES AND MINERALS Petroleum Branch INDIVIDUAL WELL'RECORD Sec.~ 15 .... , T. :.~. : . R. .~ = Meridian Permit No..~_ 66-7___ · Issued 3~21-67 Operator~_Trin_it¥.,.¢anadian Drlg. Location (Surface)_660' FS.L and 1980' FEL: Lease No, or Owner _ ~HPmest_eaders . Loc. (Bottom) Well NO. .... _.._-_1 _ Spud Date_~ _4~-_~11-66 Suspended_ 9~-3-66 Area Drilling ceased Abandoned Total Depth 11890' Elevation 2.75 ' Completed (F-GL-~ ~ IP __ B/D, Gray API Cut Gas Casing MCF/D, Bean.. ,_~. /64 CP psi, TP .... : psi ~-iZe Depth Sx Cmt Perf: .9.614'-36':9642'-_ Plugs~ 13,880'.-..1.3,550' 66' _~2Q"..... 160 200 ,..9288 "9302 '_ _ ~ 13.3/8~"- 1,6~38 ~_ 1260 50# _ 7, ..... 9.780' 400 9320'-9340' G~O~LOGIC FORMATIONS Surface Low~ st Tested. Name PRODUCTIVE HORIZONS Depth Contents Year Jan Feb._ Mar ~__Apr WELL STATUS May June July Aug Sept Oct Nov Dec Remarks: _ cn~_t~nr:_. Trinity Canadian Drl~ .... C0.,. TRINITY C~iNADIAN DRILLING C0. HOMESTF~DERS NO. 1 CONFIDENTIAL Present Condition of Well: Well has been drilled to a total depth of 13,890 ft. with 20"-54# casing set at 155 ft. and cemented to surface. A string of 13 3/8"-46.5# casing has been set at 1,634 ft. and cement circulated to surface. The production string is set at 9,760 ft. with top of cement behind the 7" at 8,510 ft. based on Bond Log. A bridge plug is installed at 9,450 ft. and all section below this depth is considered to be abandoned satisfactorily. The well has been perforated from 9,288 ft. to 9,302 ft. and from 9,320 ft. to 9,340 ft., and these perfor- ations are now open to the well bore. Fluids were produced which may be corrosive and may ultimately become a pollution hazard if not confined. To leave the well in a satisfactory abandonment condition to comply with existing regulations, the following work will be necessary. Work Proppsed: Haul fresh water to well and load 7"-13 3/8" annulus to surface and fill 7" to surface. Ymve perforating company on location with mast truck and perforate 7" casing with four holes at approximately 1,670 ft. Haul cement and 50 barrels water to location and move cementing company on location. Establish circulation down 7" and up through 7"-13 3/8" annulus. Cement with 200 sacks cement leaving 50 'sacks in 7" and 150 sacks in 7"-13 3/8" annulus. Close well in at surface and attach regulation abandonment .marker. Clean up location for final abandon- ment inspection. Costs: Schlumberger Service and set-up charge Daily charge for mast unit Perforating charge Mileage charge 400.00 100.00 500.00 360.00 Halliburton Pump truck charge to pump cement Extra men charge Mileage 655.00 148.00 35.00 Vacuum or tank truck for water hauling (360 bbls.) 8 hrs. @ 24.05 plus 4 hrs. @ 26.80 Purchase and haul 200 sacks cement to location Cut, weld, haul, and install marker Clean up location - bulldozer and men Supervision - two days @ $150.00 Unforseen contingencies 10% Total Requirement 300.00 600.00 150.00 50O.O0 300.00 4,048.00 405.00 $4,453.00 8/67 _ MEMORANDUM FROM: of ~lka . : SUBJECTs · TRINITY CANADIAN DRILLING CO. HOI~EST~DERS NO. 1 CONFI'DENTIAL Present Condition of Well: Well has been drilled to a total depth of 13,890 ft. with 20"-54# casing set at 155 ft. and cemented to surface. A string of 13 3/8"-46.5# casing has been set at 1,634 ft. and cement circulated to surface. The production string is set at 9,760 ft. with top of cement behind the 7" at 8,510 ft. based on Bond Log. A bridge plug is installed at 9,450 ft. and all section below this depth is considered to be abandoned satisfactorily. The well has been perforated from 9,288 ft. to 9,302 ft. and from 9,320 ft. to 9,340 ft., and these perfor- ations are now open to the well bore. Fluids were produced which may be corrosive and may ultimately become a pollution hazard if not confined. To leave the well in a satisfactory abandonment condition to comply with existing regulations, the following work will be necessary. Work Proposed: Haul fresh water to well and load 7"-13 3/8" annulus to surface and fill 7" to surface. Move perforating company on location with mast truck and perforate 7" casing with four holes at approximately 1,670 ft. Haul cement and 50 barrels water to location and move cementing company on location. Establish circulation down 7" and up through 7"-13 3/8" annulus. Cement with 200 sacks cement leaving 50 sacks in 7" and 150 sacks in 7"-13 3/8" annulus. Close well in at surface and attach regulation abandonment marker. Clean up location for final abandon- ment inspection. Costs: Schlumberger Service and set-up charge Daily charge for mast unit Perforating charge Mileage charge 400.00 100.00 500.00 360.00 Halliburton Pump truck charge to pump cement Extra men charge Mileage 655.00 148.00 35.00 Vacuum or tank truck for water hauling (360 bbls.) 8 hrs. @ 24.05 plus 4 hrs. @ 26.80 Purchase and haul 200 sacks cement to location Cut, weld, haul, and install marker Clean up location - bulldozer and men Supervision - two days @ $150.00 Unforseen contingencies 10% Total Requirement 300.00 600.00 150.00 500.00 300.00 4,048.00 4O5.OO $45453.00 COi61DEN'TIAL ~750 / CO I'DENTiAL qT~,O / /.. / <.;" ,i .... · .{ ,:,-: . r /1 c9,9 Spudded April 12, 1.966 Set 2/0' casing at 155.' cement c:l.rc. April 1~, 1.~6 Set 13 3/ge cas~ag a~ 1635~ cement circ. A~ril 2~, 1~ TH~ DST a~ 9106' recovered Juae 30, 1966 Run logs ak 12.711' IES Sonic. July 13, 1966 July ,26, 1966 July 30, 1~6 Reached T.D. 13,890' ran logs lES'- Sonic - Gamma~ ~eu~on - Dtpaeater. Rum ?# oasiag to 9,760' cemeated with $~ Sx. ~n oo~la~toa log ~a~. P~fO~a~ed easi.~ ,. 9,615 - 9,636 - 9,652 - ~s6~-tOOted. '~owl'~ aegligble a~t of gas - ~2 ~,. Aug. 2, 1-966, A~g. 10, 1966 Aug. 16, 1~6 Se~ w~eltu b~idge plug a~, 'Slight~ aaou~.of. ~as 5 $~H. 9,550' perforate Swab tes~. per~Oratio_a~ 9,320' - 9, 350' with ~a..-aeid 1~ ~x. pressur® 5,000 pressure 2, ~ PSI. 9,288' to 9,302' Swab test sligh~ gas Aug.. 20, 19~ Aug. 21, 1966 Aug. 25, 1966 Sept. 2, 1966 ._Se~_~,cker_a~ 9,306' aeidized perfor~tions ~,~20:':! to' ~,~$0' .wi~h~ 1,000 gals. 1~ acid ~ ~~e:.~.,~ Psi. ~n. ~eo.~e 2~$00 PSI. ~b ~es~. Pull ~cker. Run tubi-~ back - swab tes~..-..~ $~t 1~' celent ca top of bridge pl~ at 9,$~0'. Reeve swabbing ~s~. Se~. ~, 1966 Shut ia. REf, rtvr,g NOV ? 1B65 . . Form No. .,,.,.~ STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION E£fective: Suly I, 1964 LAND r't Ir lc' I I~ E LEASE NUMBER LEASE I~IR. UNIT NAME LE$SEE'S MONTHLY REPORT OF OPERATIONS State ...... ~.~.~:S]~a ..................... Borouffh ....... 2Z_enai ....................... Field .......... Tl~e ]'ollowlr~ff is a oorreo~ repor~~ o[ operalio~s a~d prod~elio~ ~te~t's address .3_!3___Ti~Z_;~_~_._.___~m..205 ............. Company _~_~i_ai~_y__:C_ana~an_.~illing C o. ............................ A_a~h_~age.___~a~ka .......................... Siff~ed ...........~ ............................................ : ....... e~o~e .......... ~2=.~.6.1 ...................................................... ~'~ ~i~ ____?_K~_~_S_~_~ .............................. 'D&Tm ' J Or. F~. oF GAs BARREL8 or O--. (lnthoUSalldS) Well si n on Sept No pre,, s record, GALLONS OF GASOLINE RECOVERED ember d. BARRELS OF W~ER (If none, so state) REMARKS (If drillh~, depth: if shut down, osuse; date and result of test for gasoline content of ~) )TE.--There were ................................................ runs or sales of oil; ................................................ M cu. ft. of gas sold; .............................................. runs or sales of gasoline during the month. (Write "no" where applicable.) ~TE,--Report on this form is required for each calendar month, regardless of the status of operations, and must l in duplicate with the Division of Mines '& Minerals by the 6th of the succeeding month,-nntoss.ot~e~wise ,. ' OCT 25 i966 Form No. P--4 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Effective: July 1, 1964 LAND nFFIIM. E LEASE NUHBER LEASE nR UNIT NAME LESSEES MONTHLY REPORT OF OPERATIONS Tl~e followi~ is a eorreot report of operatior~s arid. prod~etio~ (i~el~di~ drillir~ arid prod~ein~ . w~) fo, ~ .~o~ o~ _.~_~-~_?.~_~_ .................. , ~9.._~_e, ,/l~er& f s address __~..~__~___!!~_?__,~___~__:_s____~___O__O__~...~'_O_~_ ............. Corr~pany __T_~~_~.__~_~.~._~..._~_a._~.a..(~.~.a_..~._..?._r.~.~..~.~._.~_~ COo Anchorage, Alaska 99'501 ........................................... : .................................................. 8i~r~ed ........................................................~ ....... ~o~ ........ ~_?_~__-_~__6_.]: ............................................. ~ .......... ~/,~,, ~ .... _r.__r_~._s_L_a_~_.t. ............................. Cu. FT. o~ GAS GAllONS og BARRE~,S OZ RE]/IARKS SEC.. AND 'Tw: ]~ARBEL~ OF OIL GASOLINE WATER (~f (If drilling, del~th; if shut down, oau~e; ~ o~ ~ (In'thousandS) RECOVERE~ none, so state) d~t. amd r~ult of te, t for ~o~ oont~nt of Well on Sei~ ember ,rd. No recorded. NOTE.--There were ................................................runs or sales of oil; ................................................ M cu. ft. of gas sold; ............................................................ runs or sales of gasoline during the month. (Write "no" where applicable.) NOTE.--Report on this form is required for each calendar month, regardless of the status of operations, and must be filed in duplicate with the Division of Mines & Minerals by the 6th of the succeeding mo[~jh~u]~4e~, ~tlle~w/kse~ directed. OCT 2 5 1966 DIVISION O~ MINES & MINERAL~ A NCHO~AP.d: ,. . - : - ' :: JUSTRUCTIONS TO DELIVERING EMPLOY;E deliveredL__J address where deliveredL_J t: . .?~ressee (Additional charges required for these services) RECEIPT Received the numbered article described below. RE.~STERED N 0...~,.~ CERTIFIED NO. INSURED NO. DATE DELIVERED SEP '~ SIGNATURE OR NAME OF ADDRESSEE (AIustalways befillfdln) SHOW WHERE b~LIVERED (only it req#est"ed) 1961 : GPO __ 2. Ho ehanau of plan en fonu 1'-3 u, es filed prior t~ the ~~ ~ ~ war ~fabs~... ff",.enn ~ aU eeq4m7 ~ Mca ~ k ~ M ~ Form No. P--4 Effective: July 1, 1964 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION LAND rl FF' II~ E LEASE NI,J M B EI~ LEASE r'"ll~ LINIT NAME LESSEE'S MONTHLY REPORT OF OPERATIONS ../ TI~e f°llowi~ is a eorreot repor~ of operatioz~s a~cl. prod~e~ioz~ (i~cl~di~ drilli~ and prod~ei~ .......... .................. .... ..... ..... ========================= C~. FT. or GAS SEC. AND WELL ]~&YlJ. BARRELS OF O~ GRAVY GASSER WATER (~ (If ~, d~th; If shut, down, ~ OF ~ 'TWP* RANGE ~O. PRO.OlD (~'tho~) ~ECOVERED none, ~ state) ~M ~d ~t of ~t f~ . . ., . CI 0 N F I D.2N.~ I A L .(Not f,or PublLc Release) I . / e ,~ ~ -~/~ f ]'ec l~; 5 9 1 0' i . . P'erfo~'ati ~g, ~'reating, Swat bing, an] Testi ~g Well. . . . , I ' I RECFtVI . . SEP ~ 3 . ~IVISiON ~ MINES A~O~GE .. MINERALS NOTE.lThere were ............. ..N...o.. ............................ runs or sales of oil; ........... ..N...o. ............................... M cu. ft. of gas sold; ......................... ..N_Q? ........ - .................... runs or sales of gasoline during the month. (Write "no" where applicable.) NOTE.--Report on this form is required for each calendar month, regardless of the status of operations, and must be filed in duplicate with the Division of Mines & Minerals by the 6th of the succeeding month, unless otherwise directed. Form No. P 4 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Effective: July 1, 1964 LAND ~)lVi~lOi,~ ~t' MINES & MINE~L~ LESSEE'S MONTHLY REPORT OF OPERATIONS~,~.o~ State ____~!__~_~_~ ......................... B orOuffh ..... .K_.e__~_~ ~ .......................... Field .... _~/__A .................................................................... · TAe followir~ is a oorreo~ repor~ of operatior~s arLd. prodz~etior~ (ir~olz~diz~ drilli~ a~d prod~ei~ff weZZs) for t~e mo~t~ of ........ _~.~_ ........................ 19~.~_, .............................................. ~ ............................. ..... ~en ~'s ................................... .... e~o~, ....... ZZ_?_?5.~_~ ...... : ............................ ' .......... : .......... ze,~,, ~.~t~ ...... ~r~_~.$d~.~. ........................... Oe SEc. AI, H). BARRELS OF OIL ~ or ~ (In'thousands) SE SEC. Drill~ Ra~ Set At pr~ FID IAL (N ,tal Dept o' 13.880' 10000' sing C em and te with 40 GALLONS OF GASOLINE RECOVERED for sacks BARRELS OF WATE~ (If none, so state) Public R~g C ef REMARKS (If drilling, depth; if shut do~n, oause; date and result of test for gasoline content of a~) ,{elease) NOTE.--T_h_etc.e were ............ N../i.: ........................ runs or sales of oil; ...... N/A ................................ M CU. ft. of gas sold; ............................................................ runs or sales of gasoline during the month. (Write "no" where applicable.) NOTE.--Report on this form is required for each calendar month, regardless of the status of operations, and must be filed in duplicate with the Division of Mines & Minerals by the 6th o~ the succeeding month, unless otherwise "' directed. CORE LABORATORIES. INc. Pe£roleum Reservoir Engineering DALLAS, TEXAS July 26, 1966 Trinity Canadian Drilling Company 515 D Street Anchorage, Alaska Attention: Mr. Ralph Rush Subject: Mud and Cuttings Analysis Homestead No. 1 Well Kenai Borough Alaska Gentlemen: A mud and cuttings analysis unit was on location at the above well site during drilling operations between the depths of approximately 5000 feet to total depth of 13890 feet° The mud was continuously monitored for the presence of hydrocarbons. Using standard logging procedures, our personnel checked the cuttings at regular intervals for the presence of hydrocarbons and lithology. The results of these operations are shown on the accompanying Grapholog. After reviewing the Grapholog, we feel that it is self explanatory. If, however, there is any matter about which you desire further information or clarification, please notify us and we shall be most happy to discuss the matter with you° ' We trust that our services have been of assistance in the evaluation of this well and that we may be of further assistance to you in the future. Very truly yours, Core Laboratories, Inc. ames A. Cusator istrict Manager fAC' sm 8 cc: Addressee 1 Sepia: Addressee MUD AND CUTTINGS ANALYSIS DATA FOR TRINITY CANADIAN DRILLING COMPANY HOMESTEAD NO.'I WELL KENAI BOROUGH ALASKA NOV ? 1966 ~IVI~ION ~ol, MIN~ · ~HORAGE Form No. ~ ~ Effective: July 1, 1964 '~( . i ~._ STATE OF ALASKA ~_~.o ,~r~,:~ / OIL AND GAS'CONSERVATION COMMISSION'~"~ Nu~.r. LEA~i DR UNIT NAME LESSEE'Si MONTHLY REPORT OF OPERATIONS Tl~e fOllow~r~d is a oorreoi report of opera.tior~s and. prod~olio~ (i~oludi~ drilli~ a~d prod~oi~g wells) for ~ke mo~ of ...~.~.,~ ...................... , 19.~, ............................................................................ P~o~e .... ~72~9-~Z- ........................................................... ~de~'~ ~i~/e..~std~t ............................... Coo 8no. AI~D B&aa~M O[ O~ Or, F~. o~ OAS GALLONSoABoLm~O~ ~l OV ~ (Iu'thou~mds) li~cov~ SE 1/~ SEC. 15 Dri une 30, N F i:A L (Not WArn (It none, ~o state) ,r Publ: REMARE8 (If dz~us, deit~j if ,,bm, down, ds~ and muir of ~,es~ f~ oontent of L c Release') ......................N/A~ ........ ~ ............................ run~ or ~ale~ o~ ~a~oline durin~ th~ men,h, (Wrtt~ "no" wher~ ~ppll~able,) NOTE,~Eeport on thi~ iorm i~ r~qutr~d lot ~a~h cal~nd~r month, ~o~ardl~ of th~ ~t~tu~ of op~atlon~, and mu~t be itl~d tn duplicate with the Division oi Mine~ & Mineral~ by the O'th ol th~ ~ucceedln$ month, unle~ otho~wl~ directed, FORM SA-I B 100M 9/65 MEMORANDUM TO: J-Thomas R. Marshall, Jr. Petroleum Supervisor FROM~O..K. gilbreth, Jr. ~e~roleum Engineer State of Alaska DIVISION OF MINES AND MINERALS DATE : June 10, 1966 SUBJECT: Field Trip and Inspection, Homesteaders ~1, Trinity .Canadian Drilling Company On Monday, June 6, 1966, I drove by state car from Anchorage to the subject location. Arrangements had been made by telephone with confirmation by letter on June 3 for me to visit this location at approximately 11:00 a.m. I arrived at the location at approximately 9:30 a.m. and was advised by Mr. Ralph Morgan, the guard on duty at the gate that I would not be permitted to enter the loca- tion until they were out of the hole. It was obvious they were drilling at that time. I asked Mr. Morgan when this would be and he advised he could not tell me but it would probably be at least late afternoon. I told Mr. Morgan that it looked like we would have to have police escort to get into the location since we have beenrefused entry previously and this could be done if necessary. Since I was early for the ll:O0 time, I told him that maybe it was too early and that I wasntt expected before 11:00 a.m., that I would leave and be back at 11:00. I drove to Soldotna and called you to discuss this matter. You thought the best course of action was to make arrangements to have them contact me and advise when they would be out of the hole. I drove back to the location and told the guard that I would like to talk to the tool-pusher and make arrangements for him to contact me and advise when they would be out of the hole. The guard walked to the well and came back with Mr. Polen, the tool-pusher. After a friendly greeting, I told Mr. Polen that I had only one main objective at his location, as he had been advised previously, and that was to check the blowout prevention equipment. I advised him that we were not interested in any way in learning his confidential information. We made arrangements for him to contact me or leave a message at a telephone in Soldotna. After this, we discussed our personal backgrounds and experiences for approximately fifteen minutes. As I prepared to leave, I asked if it would take him 2 1/2 to 3 hours to pull out of the hole and he stated he could not tell me as I might be able to figure out their depth from this time. I told him I would check for a message each three hours and he indicated this would be satisfactory. At this point I left. I checked for a message at 3:30 p.m. and 7:00 p.m. and no word had been received from the well. I left Soldotna and drove to Sterling where the well is visible from the highway. It was evident they were pulling out of the hole at that time. I drove to the abandoned N~Dtowne well, a distance of about ten miles, and returned to Sterling. I then drove to Trinity Homesteaders location. At the gate, I joined Mr. Ralph Morgan, the guard on the gate, and Mr. Jake Black in Mr. Black's car, and we spent approximately thirty minutes discussing the Homesteaders well, their homesteading experiences and our rules. They indi- cated that having no prior oil field experience, they did not understand many of our rules, particularly those dealing with spacing. I read the spacing rules and explained what they meant and why. At the conclusion of this discussion, they each expressed appreciation for the explanation and requested a copy of the rules which they could peruse at their convenience. These copies have been mailed. I Thomas R. Marshall, Jr. -2- June 10, 1966 SUBJECT: Field Trip and Inspection, Homesteaders ~1, Trinity Canadian Drilling Company explained to these homesteaders that we would be happy to help them in any way possible or explain any rule which they might not understand. They seemed happy about this and indicated they would contact us in the future as they knew they would have other questions. At this point, the crew finished pulling out of the hole and Mr. Polen came to the gate and escorted me to the well. The '~bag" preventer was checked first and worked all right. The manual preventer was a Shaffer Type 132 double ram blowout preventer. The blind rams were tried first and did ~ot close. The rams were washed twice with water to eliminate sand and mud which had lodged in the crevices. It was necessary to open the rams and close them again and this time they closed completely some seventeen minutes after starting the test. Next, the pipe rams were closed and it was necessary to wash sand from these only once be- fore they closed satisfactorily. This required only approximately five minutes. Mr. Polen stated he had completed building an air volume tank to pneumatically close the rams but this was not yet installed. He also stated they were testing the preventers after each trip with the bit. I examined the blow-off lines and mud kill lines and found high pressure equipment in place. The cellar had been allowed to fill to the top with water or mud and I was unable to determine if there were indtcation~of cement being circulated or even the size of the casing for that matter. The well was equipped with a kelly cock and a standard manual valve was on the rig floor for stabbing if the kelly connection could not be made during imminent blowout. I did not require a high pressure test of the preventers because the operator advised they had penetrated incompetent formation and felt this might result in a loss circulation problem. In general, I found the blowout equipment to be in fair operating condition and without doubt, this will be improved upon installation of the air actuating mechanism. I approved the installation because the "bag" preventer could be closed rapidly in an emergency and would hold until the rams could be closed. In the absence of the bag preventer, this equipment probably could not be operated soon enough to prevent a blowout. Mr. Polen advised he had repair parts on loca- tion to keep the bag preventer in operating condition at all times. The general appearance of the location was orderly, and though the equipment was old, it was freshly painted and looked pleasing. Due to the trouble we had in entering this location, I did not look around much except to do specifically what I said I would. They did have a proper sign on the well. As a passing note of interest, they had racked the drill pipe in an unorderly manner, presumably so I couldn't count the stands to determine the depth. I was able to make a fairly close estimate, however. OKG/cjh FORM SA-1B 100NT9/65 MEMORANDUM TO: ~homas R. Marshall, Jr. Petroleum Supervisor FROMb. K. Gilbreth, Jr Petroleum Engineer State of Alaska DIVISION OF MINES AND MINERALS DATE : June 9, 1966 SUBJECT: Field Trip and Inspection Report, Homesteaders ~1, Trinity Canadian Drilling Company On my recent trip to the field, plans had been made to visit the subject well and determine that operations were in accordance with regulations of this division. Complaint~had been filed with the Department of Labor by discharged employees and these had indicated that the company was not complying with regu- lations regarding blowout prevention equipment, cementing, etc. On Wednesday morning, June 1, 1966, I called you from Soldotna and asked that you make arrangements with Trinity Drilling Company to admit Harry Kugler and myself to their location. We had been advised than an armed guard was stationed on the road to the location and that the well was being drilled under tight hole conditions. At approximately 1:30 p.m. that afternoon, we arrived at the gate and the guard on duty checked our license number, and upon learning our names, admitted us to the location. We parked at the well site and entered the dog house and asked the driller if the tool pusher was on location. We were advised that he was in the trailer house nearby. We left the rig floor and met Mr. Clarence Polen, the tool pusher, approximately halfway to the trailer house. We identified ourselves and commented to him that the new paint on the engine room and dog house looked good. I advised him that I would like to see the blowout preventers tested and he said he Could not do this. I asked him if this was a refusal to test the equipment and he said I could consider it any way I liked. He did indicate that he feared sticking the pipe or losing circulation if a test was made at this time, but said he would test if we would take responsibility for the hole. I advised him that we were not interested in seeing the test under these conditions. He stated that he would be glad to test the preventers the next time he pulled out of the hole but advised that they were working satis- factorilY-as he had tested them personally the evening before (May 31). I told him that we would return when they were making a trip in order to test at a more convenient time and asked if we would be re-admitted to the location at that time. Mr. Polen stated that he wanted to cooperate in any way and that we could come on the location any time and further advised when the guard would be off duty and how we could come through the gate if no guard was at the gate. During the above mentioned conversations, we walked around the base of the rig and viewed BOP equipment and substructure. The cellar was level full of water or mud 'and he .advised it was approximately eight feet deep. We were unable to see casing heads, casing spools, or tie-in points for bleed-off and kill lines. (Two bleed-off lines had been installed--one containing an adjustable choke and the other a positive choke.) Although I was unable to determine pressure rate on this equipment, the well was equipped with a "bag" preventer and Mr. Polen volunteered to test this~piece of equipment if I so desired. I advised there was Thomas R. Marshall, Jr. -2- June 9, 1966 SUBJECT: Field Trip and Inspection Report, Homesteaders ~1, Trinity Canadian Drilling Company No need at this time and it could be tested when we tested the other preventer. A double ram BOP unit was installed below the bag preventer. Mr. Polen stated that he was as interested tn protecting life and limb as I was and that the equipment was safe. I told him that since no reports had been filed on the well and if the well was as deep as the rumors and published reports indicated, they had a terrific amount of open hole and this certainly presented a possible blow- out hazard. He stated this was not true, that they had run two strings of casing and circulated Cement on both strings. I asked if intermediate casing had been run and he replied in the affirmative. He stated he did not know about the filing of reports as that was handled by the Anchorage office. We walked to the dog house which was almost completely barren inside. The face of the §eolograph had been blackened out so that nothing was visible re- §arding depth of operations. The crew during this time had been making a connection and while working the drilling pipe back to bottom, something happened with one of the mud pumps and the driller pulled backup and started circulating. We told Mr. Polen that we would go and get out of his way and try to return more convenient time when they were making a trip. He stated the bit had been in the hole approximately sixteen hours at that time and would probably be pulled during the evening or night. We left and drove to Kenai to discuss this development with you as we knew you were at a meeting there. We found later that you had already left. We drove back to Soldotna. We returned to the gate of the Homesteaders well at approximately 7:00 p.m. and the guard at the gate advised they had a broken valve in a mud pump. The kelly was in the same spot in the derrick and it was obvious they were still circulating. We made no attempt to enter the location but drove back to Soldotna for the night. The following day after witnessing meter proving techniques in Swanson River in the morning, Mr. Kugler and I stopped by the location on the way home. Mr. Morgan, the guard on the gate, stated he could not admit us and his instructions were that we would have to have a written notarized pass from their Anchorage office to gain admittance. The tool-pusher was in Kenai for lunch. I asked the guard if he would give the tool-pusher a message and he said he would. I wrote a note to Mr. Polen stating that we believe we have every legal right to enter this location in the line of official business and that we would be back to heck his blowout prevention equipment. I also asked him in the note to advise is Anchorage office that I was there. We returned to Anchorage. Form No. STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Effective: July 1, 1964 LAND DF'VICi LEASE I"IE UNIT NAt,,41=' LESSEE'S MONTHLY REPORT OF OPERATIONS Tl~e followinff is a eorreot report of operations a.n,.d prod~etion (inet~din~ drillin~ and prod~ein~ APril ' ~.~ 66 welis) for i~e mo~t~ of ................................................... .......... ; .... : ................... ~A~gDP_~ge, .'Alas~ 99~Olsi~ea .,~~~'~-~-~-~~ ....... ~ ...... .............. .... .... ...... ......... - .............. ., Co. FT. Or GAS OALtONS Or BARRELS Or REMARKS SEC. AND. TW1~. RANGE WELL DaYs. BARRELS OF OI~ GRAVITY GASO~E WATER (~ (Ir ~g, d~th; If shut d~n, ' ~ Or ~ NO. ~RO~OBD (~'tho~) ~ ~d rm~t of ~t for Rz~vm~z~ none, ~ s~te) _. : oon~t of ~) . . . C'C'N'F i D E N T I A L (Not f,)r Publ:Lc Release) ~,. 15 5 9 1 O ,pth s;tar~; 'oi mop,th ~188 sted dri;kl ~i~e off at 7388 ~n 5/13/66 :~eik sa, ae 5/1~$/66 . lled 12 '~$ inclt hol e' to 766~, .uced-12 '~/~ inctt hole to 8 3~. inch ;drill s~;em ~esl; on 5/29/66~ al de,pth as. of I;/31/66 9,00() feet ~ , , . ' ~ , . .... ,, SW. 1 SE SEC. De Twi~ D: R, Ran Tot NoTE.--There were .......... ~/A...] ........................ runs or sales of oil; ............. N/A ......................... M cu. ft. of gas sold; .................. .~./..A....: ............................ runs or sales of gasoline during the month. (Write "no" where applicable.) NOTE.--Report on this form is required for each calendar month, regardless of the status of operations, and must be filed in duplicate with the Division of Mines & Minerals by the 6th of the succeeding month, unless otherwise directed. I INSTRUCTIONS TO DELIVERING'EMPLOYEE- I I I-"i Shew to Whom-a'~d'- I--I Shew to whom,-when, and ' I-,i Deliver*ONLY '1 I U,Wl~n:i delivered'/.: .'/ -' ~ ': L.J address where delivered * '- U to addressee I 'DATE D~Iy~".-~:~:~/'"*:~ J::'SHOW WH~ DELIVERED (~!~ ~/re~e~ " '" REGISTERED MAIL Form No. 1)--4 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION Effective: July 1, 1964 LAND LEABE NUMBER LEASE I'lR LINIT NAME LESSEE'S MONTHLY REPORT OF OPERATIONS State .... _A._k.A_S._E.A_ ............................ Borough ......... ~5.N..A.J ........................... Field ..... _N./__A_. .................................................................... . Tko followin~ is a correct report of operations and production (inoh~din~ driltin~ an'd prodz~oin# - APR I L ' 66 wells) for tire mor~tir of ........................................... 19 ...... , ............................................. ; ............................ . _._ ...................................................................... , . ......... .......... ' ..... .................. .~2 ?.72 L% .%:---~-.~!~- L~: .......... ?-?~?.! ........................... si.~e~ ........... /7 ....... 7-~ ........ ~ .... ; ....... P ir o ,~ e ...... .a. .173 5 ~ ] ............................................................... ,/l ~, e~ ¢ s title ....... P. ~.E. .S_ J . g.E. .~.T. . ........ % ........ .>. ........... sw. ~ SE 1 SEC. 1 SPUDD RAN DRILL SET 1 PIPE DEPTH C'O N F I .LAL (NoT ON APRIL WITH 2 , REAME 1638 fEET. 50 POUND d~ ON 4/19. OVER. LLING ON ~/ OALLON$ OF O&SOMNR I{ECOYEEED FOR PUBL 0 SACKS. .~EMENTED none, so state) C RELEASE CEMENT C TH 1 2{~0 9. REMARK8 (If drillb~, dOl)tht if -hu~ down, d&to and result of test for IoAolh® oontent of ~) RCULATED, ACKS REGULAR NOTE,--There were ................. ..N.,/,A ........................ run~ or sales of oil; .............. N,/A ................ M cu, ft. of gas sold; N/A . run~ or sale~ o£ gasoline during the month, (Write "no" where applicable,) NOTE,--Report on thi~ form t~ required for each calendar month, regardles~ of the status of operations, and must b~ lil~cl in duplicate with tho Diviaton of Mines & Mtnerala by the 6'th of the succeeding month, naiman otherwise directed, !! / Er. Thomas R. lfitche ?etro~eum Supervisor Oi~ and Gas ConservGt$fln 2001 Porcupine Drive Anchorage~ A~aska 515 D STREET ROOM 203 ANCHORAGE, ALASKA Aprit 18, 1966 RECFIVF APR 19 1966 AI',tCHORAG£ Dear Sir: Re: Homesteader8 #1 ~/e enc&ose a copy oj: the PooLing Agreement thu( you requested. TAe ~et~ mas spudded on the !I~h of ~4pri~. ~$e wiZ~ submit form ilo. P 4 by the IOtA of Nay. er~c . 1 6r,,~/o; o o A,H FROM ................................................................................................................................................................... DATE ....................................... ..................................................................................................................................................................................................................................................... ....................................................................................................................................................................................... '~ ................................................................... .................... ~._:...... ........... · ..;. SIGNED SIGNED 1. KEEP YELLOW COPY. 2. SEND WHITE AND PINK COPIES WITH CARBON INTACT. 1. WRITE REPLY. 2. DETACH STUB, KEEP PINK COPY. RETURN WHITE COPY TO SENDER. 515 d STREET room 203 anchoragE, aLaSKA April 6, ~966 Mr. TAomas R. Marshall Petroleum Superuisor Oi~ and Gas Conseruation Commit 3001 Porcupine Driue Anchorage~ Alaska Dear Sir: Re: Your letter of March 28,1966 We enclose copies of our original tease and Standard of ~alifornia and /lttantic Refining C ompany , s letter to us. We ~ill foruoard to you a copy of the pooling agreement mithin the next day or so. Very truly youra, Trinity Canadian Dritting Jo. T~ls letter v~en accepte~ by yc~ in vritin~ shall ec~stitute the a:;rec~ent between us ms to the hcreina~cer described oil ~ COS lcascu located in the Third Judicial DLstrict, ~tate ofl Alaska. ~o are reflcrrod to herein es "5tenrl~r.~-Atlrntic" ~n~ Foe are referr~ to au "Fornoutee". "~t Leeses" ~ [Vc~n~d-At~ntic leeses r~d other ~crec-cnts de~cribed in gxhibit "B", attached hereto end by a~ they coyer the lr~ls specifically deUcribeA in ~-~Lbit "B". "F~r~o~t F~c&- the ]~nd~ 171~1 vtthin the c~tline os the plut mttache~ hcl'eto eo J~X~lbit "A' anE[ by reference maxis & lx~rt h~rcofl. Fe~uucuteo shall ccaa~cnce thc actual dz'illtn(i in the ~um,! ofl a test well (or cubatitute tcut ~11 ~ pr~l~ In ~ra~ph ~II ~of) for oil, ~a ~d ~her ~~b~a ~ ~ befo~ ~ril 1, 1~ ~t a [~utl~ within the ~t~cot ~cr off the ~h~ot ~cr (:~;~-), ~ion 1~, 'l'~ip North, ~O ~ k'oat, ~.{~., ~n~ ~11 thel'ce~er ~ntl~o ~l~l~ caid te~t well i~ 6~ ~lth ~d With ~e ~ligcnce to ~e of tho foll~i~'I &~h~: (.) A to.al vertical de~h ofl 13,800 fleet ~eaoure~ f~c~ the Eelly Buohl~, or · A deFth off I(X) fleet below the hue of the Tertinx~, or A de,th at Which oil m~or CaS is encountered in "ccolorciel qumltiticm", Whichever ~h~ll first occur. Mr. Otam R, Smith Mr. ¥. Oorden MArshall Mr. Lemard Rush Mr. Perry Oreen Iff amid test well is not cmmmen~ ma or before April l, l~gS, thio a,~roe- meat shall ipso f~cto terminate in its eotire~.y witheut further nc~ice or demand em the part of Standard-Atlantic. Farmm~ee shall drill said teat well (or substitute test yell) at its sole cost, risk and expense, no portima off Which shall be subject to the retro- active adjustment pr~vialooa of the 9terlin~ trait Oporatin8 A~reemcnt. If the test well (or substitute test well) ~rilled pursuant to thio Para,apb IX Is a well capable off producin~ oil and/or Ga in "commercial quantities# aa herein defined, it shall be tested and completed into ~ntherin~ tank~ or ~ao lines mt the sole co~t, risk and oxperme of Farmoutee. A~ used herein, 'ccmercial quantities# shall mean sufficient qunntit.ieo of oil and/or flsa to repay the cost off operatin~ n well to~sther with ~ reassemble proffit. X¥ Substitute #ell Xff impenetrable fformatimao, basement or mechanical dtffficultieo or other cm~l- tiara are encountered prior to reac~ln~ o~e off the obJectiye deI~hs no provided in Paragraph II A., w~tch render impractical an~ further drilling, in said teot velA, Farmoutee may, if it co desires, without delay, ccea~eneo tho drl~-lin~ of & substitute test yell. ~aid substitute well shall be drilled nta within tho 5msth~est Quarter of the ~mtheast (~mrter (~~), Sect~o~ Township ~ I~orth, Ren~ ~ t~est, ~.H., o~ en & lease ofmml~te~ to the .~terXin~ t~it en~ within the I~arm~t Area. Xn mash event, all of tho tarns on~ cc~ditiono herein co~tainm~ with respect to the drlllin8 operations provided flor in Para- graph IX hereoff shall in like tanner apply to any such substitute ~oat well or yells and 3tandar~*Atlnntlc shall be entitled at all tirmo to all tho privileges, lnformatic~ and reports herein mentioned with respect to ~ll times to the total depth of amid attbstitute teat well or wells no completely an~ FAnally drilled without any transfer of intore~ otho~ then herein p~ovide~l for. 9tandard-Atlantic shall have full and free access at all times to said well or wells and to all of Farmoutee*o records and data in connection therewith, to- gether vtth the ~ to exe~ne and retain samplen of cores, if taken, cat drill cuttings therefrma, and l~rmouteo slmll .~'cw'~l.y furnish ~tandard-Atlanttc with a ccmplste drilltn~ record and a log and a reproducible copy of all electric logs, microloffs, mudlcCo, dipmeter and amaic lacs, if run. If Fexmmutee elects to take any sidmvall samples tn the course of drilling said well or yells, ~tan- dard-Atlantic 6hall have the right to examine such sidewall c~mpleo. Fart~utee will make daily drlllin~ reports to 9tandmr~-Atlentic's representative, ~. A.B. 8couler, ~OOl "C" ~trest, Anchoraffe., Alaska, telep~cem number f.~2.-8~1, or such perao~ aa 9tandar~-Atle. n%lc may subsequently Ctesl~nata, and no.try him a roeao~- able time tn advance of any forzmtima tests that are run, of any depth meanureemnts Mr. Oeen R, ~lmith Mr. W. Oo~-dm~ M~tchell Mr. Leo~ard Rush Mr. Perry Ore~n -3- ~ebruary ~, that are made in said well or wells, and off the running off any electric logs or so, lc logs therein ~n order that Standlm~-Atlaatie may have e representative p~msent to wit~ess such tests, emmsuremunts, and the running off ouch electric ~ aaa scale le~s. If said test well (or substitute te~t well) ia drilled by l~arsmutee in the manner provid~cl in 1~ Il A. hereof to ~ off the ~.~ths spcuifiod i~ Il A. (a) or (b) ~ if F~tee s~ll have o~hc~ioo ~'~p].lc~ with ~11 of ~e~ m~d c~diti~ of t~8 ~t, th~ ~thin fl rcms~b].c ti~ after cetvt~ appropriate ~itt~ ~tce ~ ~t~ tha~ said well ~mo ~c:~ ~'tll~ in aeeo~n,~ with ~ph IX A.(a) or (b) hcr~f, ~n~xrd-~tlnnttc wt]l troffer ~d ~ol~ to ~~t~ ~ m~,.Kvi~ f~y po,'ccnt (.,0~) of all ~f' tntc~nt tn t~ ~u~ ~a~o8 w/thin tho ~~t A~a. In tho c~nt said toot ~11 (or o~otit~e ~ent ~ll) shall ~ drilled to the ~pth s~m.:~f'[cd lu ~- graph Il ~.(c) b~ shall ~ ha~ roach~ ~ of the d~ths spcciI'[od in Para~ph Il A.(a) ~ (b) he~off, ~ if ~mtoo ohal~ hr¥c ~ho~co ~'~l[cd w~th ell of the te~ ~d ~n~tl~o of th~s ~~nt, then withl~ a t~ after ~cciv~ cpproprlate ~ltt~ ~lcc from [~x~eo that zaid first test well (or ~otitute tcct ~11) ~ ~n ~lllcd In ack, oma,ce with Para- g~ph IX A.(c) hereof, ~~-At~nttu will tx~n~fer ~d ,nst~;n to ~ ~~d flay ~r~:ont (~) off ~1 oF i~.~ t,~,~cot In the ~~t within thc ~~t ~a ~ to 1~ ~t ~1~ tho ,tretigr~hi,~ equivalent of the ~p~h ~l~ in ~id test well (or s~tuto test vcl~) as of the ~te of the ~~ld ~itten In those cases where a zonal a~si~neent o~' a lease or leases will not be ~provod by a~ ~ve~tal e~:n~ then ~rd-Atl~tt,: wt.[1 trnnafcr to F~,:~utoe by ~pr~riate inat~~ ni~l~ ~~tt~ ~e }%~t I~n,oa ~i,:h tO the ~erl~ ~[t ~r~nt ~. 1~-O~-~1-7'~;'l mpp~vu,l July 7, 1[~31 by thc ~rector ~ the ~lt~ ~tea ~ol~lcml ~wcy ~n,l ~'~ thereby sub Just to p~l,~s ~ t~ ~erll~ L~t ~tt~ ~ruc~nt. It ic ~,~,.st~l pul ~rc~ t~t ~ o;~c~'~t~ ~:~~,1 hur~~r or hu;'c~f.:er (m rny o~ ~m[d !,n~ ~tt~ to ~id ~lt ~d ~hit ~rot[n,~ ~~t sh~ll bo ~.,~-ricd ~ ,u~Juct to ~d tn accor~cu with the e~p].~eablo p~ol~m ~';a~d thor~:i~ ~nd ~W trna- For of interest p~a~t to the to~ of tht8 a~.cc~nt cheil b,~ ~,t,: :~u:)Je~ to sa~d ~t and ~lt ~erat~ ~~nt. In the cv~.t the assi~nt or of a~ ~'~t I~e requireo thc app~v~ of r~ S~ate or ~bdural ~ge:~'y h~ving Juris~ct[~, au,~ ~oi~t or tr~sfor shall be ~m,dc r. ubJuct 'to the of said ~~. VI Dener~l t~A-ovi s lO~s A® ]~copt as otherwise herein provided or an otherwise hereafter agreed., Standard-Atla~tic ~hall pay all del~y ~.nls accruing! at'tar the date of Ow~m R. ~mith Gordon Loounrd i-Mah Pcrt~y Green Be C, thio agreement under each Farmout. Lease end .~ar~outeo aha).l rzlt~m'oo ~an~d-~tic for the t~ ~~ of such rental within thl~y (~) ~ a~er ~pt of ~ i~otce th6ref~; p~i~d, h~cr, t~t interoot In ~¢h ~~t ~e~ ~ pr~l~ in t~~r~ V hereof, ~1 ~ ~liget~ ~ly f~ ~~lf (fi2) of th~ ~ntn]o nccx~xin~I thcrc- At~tic within the t~ o~cirl.~, then ~~rd-At~ntic ~y tu~tc thio n~~nt a~ ~11 ~ rcli~od of all' ~,bllity to ~mke ,my of l~ercot her~r. If ~~ f~llo to so rci~ur~;e l~am~r,t-At~lc within the tl~ a~cifl~d, a~ tf ~mM. rd-At~ntic has ~.dc or ~os ~ t~afer of inte~et p~o,~t to ~r~'st~ V h~zruof, bhcn At~tic ~y tcml~tc ~ euch t~nsfcr insoIa;- ~s it e~'ccto cu,:h I~nc ~er~l~ ~~eo ~1 ~e~ey or x~t~nafcr to ~~r,i-t.t~ntic by m~a of a rocor~blo ~ltt~ lnatx~nt r~y l~o;'cat~ ~x~uto,~ ~y ncquir~ in cuch loans ~rwmnt to thin ~rcc~nt rnd cu..:h z'u,'~re,~ycd rctrnnafcrrod integer al~l no l~r be c~ez'od or ~ft'octcd by thio .~nt. ~~rd-Atl~tie ~Mll ~ be liable fcr f~i].m~ to ~ko th.~ proof ~t~ ~nt ~ ~co to uae the m~ ~~ of care tt ~eo In m~talo ~r mhcr ~tandard-Atl~ntic m~keo no wmrz~nty of title to ~~tee an to the ~~ ~e~c$ or thc lan~ c~~ the~by anl nay t~nnfcr ~ lntcrent ~ ~- e~nt to ~~~ V hemf a~ll be mdc with~t ~r~'~ty of a~ kin4 but with ~11 attb~nttm to the rl~ta of the pe~y ~kl~ the tnmafcv. Prior to c~ncl~ ~ti~ f~ cec~h of the t~nt wcll~, ~r~'utco ~lmll, at its ~le exp~e, ~du.:t a,~q~c ttt].o ~'crk a'~,l r~;~ a ~azmwblu att~,t to ~o tills ~fo~s. ~~rd-At~mtic ~}~11 ~.kc aw~t~nblc to wlth~t c~r~, ~ title infon~ti~ tt r~y ~vu ucrtaining to the ~~ ~aoc$ ~ ~.mutoo s~.ll ~tzniah ~dnrd-~,tlnntLe ~l'h copies no all title re~rta, abstracts a~ a.tt~ncya' title ~ln-[ens ¢t~tainud by it rcl~tln~ to the ~n.~t ~oeo.. Fez~aoutco agrees to c'tm,~U,'~'t all of it,; o~r~%l~.n$ horc~m~c in~lu~ the ~~ ~ ~ ~11 in accor~ec with tho )~icio~s of thc l~so~ ~d a~l~eablc l~s ~d yo~lationa. ~nx~';o,~ aC~'cc~ to i. nd~l~ Ll~n~rd-lt~tic a~inat and hold it lm~u~:; f:'cu rill ~nd all ].oan~ clnl~ or liabilities ~-isin~ ~t of ~utcu'a ~.,ox'nti~a ~x~tc~ shall ~op tho ~~t ~oco l'r~u ~nd ,':].ul'~' of al.! Ii,Jim t:nd ~~ts ~d wi~h such cnrriui-s ~c ars apt>rovc~[ by btrn~,d-;tl.;m~i:: ,n4 such Atlantic flos~ by ~.~teu hu;~~'. ~r. Owen lt. ~lt~ ~-. W. Oordon ltttcbcll ~r. I~o~ard Hun~ Mr. ~ Green -5- February ?, 1~ De ~e Fe Oe ~ ~ .I_~~nt ~ractor. ~c ~ll~tmo end ]iablllZlou of thc par;leo he,to a~ o~o~l esi ~ JoinZ a~ nothing herein c~tni~{ot eMIl cr~te or i~ge a ~ncruhip ~ty, ~l~etion or ].i~llt~y o:~ either of ~h~ ~rtluo hereto. in h~h t hot--f, ~uire ~t to mtn~ain ~~t~'r; p~-~z.ti~te interest in any stroh l~sen $o ~:'o~ufer~-u<l, then ~~t~ ohal! ~on~rd-A~tic slay (60) ~yu in n(%-ence of ea~y rental ~li~;r~ion o~' lnt~4 to mintain. In ~uch ~t, i1' ~r~:~nrd-lt!nn~ic dcci;'cs to rain- thin sa..ch ~~ Imscu then ~an~-d-Atl.nZi,: .lm!l be ~'r~e to ~o tho required rental ~~to ~' ~rfom any othcr :-c~ulrcd cb!l,3~ion ~,~rd-Atlan~ic's cole oeccu~t ~'~d u[~ ~r~ ::hal. 1 l~ ~ntitled to receive fr~ ~~eo rn nosi~cnt of rill of ~n~m~o~'c sole o. cc~ and tl~ere~fftcr t~ind~u'd-~tle~i': chn].l hr:ye ~ su ~i~ l~e ant c~act ~ti~o thcr~n, ~:n,i such lense chall no l~or be c~;~ or affo~od by this ~~n3; ~all n~ bo relieved of my ~li~im~ or limblliZy thcretofoA'c tO such l~oos and ~~teo ~n to iml~ni~ r~d hold b~rkrd-Atl~tic ~x~ou fr~ m~y such ~l~ntim~ ~ liability. In tho event that I~.ruoutoo ~hall have o. cqut,-od nn In ;u~'c~:t in rny ~oo ~o~t to ~ho pr~i~i~ of ~r~ra~ V hcr.~f and it' ther~~ ~~eo ohall ac~iro any inZcr~t i~ a~ ou<i~ which ac~ulaition ~o n~ m(~ ptws,u'nt to Par~rnt.h V h,~reot', ~hcn ouZcc o~].1 pr~ly n~l~ f~nn~rd-At].rntic of such acquinl;t~ ~ivinc in ~Titin~; thi~y ({O) ~yc n~er receipt of uu:h ~e:ico, n~:Luirc [.11 vied ~o-~lf (l/'~-,) c~:'c in tho lease or ~hcr lntoi'c~t co cc,lttlrcd omi thc ~~a~ u~l! ~livcr to S~nn~rd-Atl~ttc ruch ~ly c::o~'utc'l and ac~lo~od ~~to m ~y be rc,~uir~; i:~ ~uch ~w~t thc ~.,)~ of ecc, ui- sition ~11 ~ bo~e in ~1 G~S by ~X'~te~ cna .~v~,~ Ir ~o~rd-At].~tic elects ~ to ac~.uLre rny su~ in~,'~st, ~u~i~ ]ce~e m' intex, est ~11 be hold by ~~t~m for its o~m acc(~nt ~.'~ th i a ~~nt. f~(Cor)': for notices required to bo giv~m to i,~;rn,~r~-Atlr.:'.i,:'~ rcp~ocnta- tlvuu p~nt to ~.~nph IV ~r~f, o~ n~icu pr~idcd t'o.' h,:r~tn s~l! ~ dc~d du~ flivcn when ~zited in tho B{i',cd ,.irate; ~a:il~ i~ot~le prcprid, ~',Zu~l to the puny to bc n~iYied Va,. Owen H. ~lth M~~. W. G~rdcn M£tchell Mr. I~oru~d Ruoh ;tr. Perry Oreen -6- ~brunry ?, 1,.~ ~tandmrd Oil ~RPe~¥ o~ Omlifnrnim P. O. Box Anchor~, Alaska 99~01 Attention: V.~-. 1~. W. I~llen Anchorage, Alaska He Thio ~gr~ ~hall tnu~ to the benefit of and be btndir~: u[~n the auc- centre ~d fl~sl~o of thc pa~Xeo he~o; p~X~,], howler, t~t ~ ~tee c~ll n~ t~ofor or o~l~ in ~olo ~ ~n p~ any of ire lnteruct ~der thio ~-~nt lacl~~ ltd rl~t to cml~ nn intcrent i~ r~ of the ~t ~mca wit~t the prior ~ittcn ~8~t of 5~~rd-Atl~lc. If thc foregoing moota with yotu- ~provnl, ploeoo no lndicc, tu by ci~tlt~; In the op~ce provided below end return~n~ tho two duplicates to ~. Very t~{ly y¢,tu-o, ~OXN~ Yf~E Owen R. ~m~th W. Ck~x-dem Mttc~ell beormrd Ruth Por~.y Ox~ Aa a~ aiterun~ive-, you nay r~-apply ~or ~:tsm destination o! the it/ 1/~ of lleet~n 15, lSl~-4tiV, It. IL aa you~ ~ unit providin{~ all tracts within Chat l~lt~eJh bce: Ralph (~rews, &~~ ~eneral~s o~£tee Very truly 515 D STREET ROOM 203 ANCHORAGE, ALASKA ~Varc~ :?"5, 1,36'6 Er Thomas R. MarshaLl Petroleum Supervisor Oil and Gas Conservation Committee 500l Porcupine Drive Anchorage,A lasAa O' ! v' !,'; ~ "-" ....... · OF MINES & MINERALS /'d'-iCHORAGE Dear Sir: Re. Your Letter of March 24, t966 I am enclosing a copy of our Farmout agreement with Standard Oi~ Company Of California and Atlantic Refining Company. I trust that tAis will ~fa~e care of your requirement as to the poo~ing of the acreage in question. Also I want point out that we wish to designate as our ~60 acre unit the W1/2 SE 1/4 Sec 15, and the El~2 SW 1/4 Sec~5 as the dedicated acreage for this The other information that you requested is being prepared and wi ti be forwarded to you uery soon. Yours Truly, eric. ~ · f. ,,, a~, .L~.~___~__._o.~_t~~;' !,,~, o~:~~., ,=,~ ~.~.~,,.. ,.t~, ~., ..,.' ~.,~, c~ ~u ~ ,l~ole ~. ~~','~ty': "~~~:~ ,.~' ID,i;': li~'.,'/ '. ~.~ ','~,'"~"'.~.~'~' off ~ ~~ ~,o. .- ~ ,,. ', r~ce)~..~ F,~~I.~ ~a.~Sa~ of all. <>," (>a~..,,~',, .~j-'~'- tJCJ,~ %- .;. ! - i. .!:7. · . · COMMERCIAl. FORM (~.I-MS} OIL, GAS AND MINERAL I. EASE THI~ AGR}:EMI~NT, made ~nd et~tercd tntOMOf the...~. 5. [: ...... dllr of ..... .~..e..~.~:. ~.b..o..r.. ............................... It .6.#.. between. =~< -.-hereinafter called "Let%r" :,whether one or more} stol , b.r~inafter called ,tiMe, . WITNBISITR ,,, hn,',,l paid, ,:,f th~ ro)'allt..e harem pr,,vided, and of the ~emeuts ,)f l. eMee hetei..(:n~alned, !~a~+.. ~,d lena ~eluaiw. lv u,,t~, Levee th~land herein~er d~rib~, for the pu~o~e of ,,~-, ~,~,~ f,~ pr,~,~u,'U,g, ~avin~. takml, owninl, tra~)~l, snot,al, ha,,dtin~ and ~r, ati,~g otl, ga, and Ill other hyd~ ,.arl,ot~ am~ m~nerais, wh~ther s~milar or d~imilat, to[ether wi~ all rilht.~, privileges .t~,t e;,~et~l,t, u~eful or eonveni~t t,~r I.,.~,',"~ operatmnl h.r~un,i,'r t~n ~id land and on landa ~ the ~am,, field, iueludtt~I b~,t m,t I~m~t~d to the f~,llowi~ r,=-~,~. ~,, i~)' ifipe l~ne~, to h.ild ro~4n; a~d to e,'m~tru,'t ~nk~ pump azd power s~at~,r,'= ~, ,:.,.~ ~'(,r ~,~ empl,~v,,-- and olher st~etur~ and facilities. ~e said land in,laded in this lfa~e is ~tuat~ "x Jud ic iai D L :.~ t P itt. ..... 8late of ¢~i.'~ .... ind :. (l..(,r,t,, u::ludiu6', all oil. iris s,,,I all other hydr,.,earhou~ a~d minerals underly,n~ i~, stoma, ~1, ea.~entn and mlht~ which tr~'er~,- 0r ndjO~r, said land. n~,d ,~so, i~ ~d~l~tion l.o the above d~m~l lan4, nil ial~d ad~omin~ the s~me and ,:,r claimed by l.e~or: and containing .~-.OO~ ............. ieres of land. more or lam This Ieee ,hail ,,ov~t nil th. interent in ~aid land now own,.,t or hereafter'aequ[redby L~or. even th,'m~h great*r than the andidded interest (~ any' des,'r,b~ obo~-e For the pub-se ,.,f ealeula~ag any paymen~ b~ed on acreale, ~mee, at ~ee's ol,tion,.may eel ~ if ~d Imid end it~ constituent ~els contain t~e aetea~ above e~t~. whetb~tr the~ ~tuall)' eon~in more or !~. 2. ~ubjeet to the ,,ther provilionl b+~in contained, this le~ ~al] remain iu force for a pen~ of f ire yearn from ~he d~t~ h~r~f, e~ll~d "prlmarF t~rm.." ~ad th~fler so long ~ oil, ~, hydrc, e~rboas o~ other mm~l~, or ~ny on~ or mo~ ~,t' them. ~ pr~ueed from ~id l~d hereunder, or ~ is enf~ed in d~l~f, me,ag or ~Worki~ operation, o~ ~id land hereunder. 3. Royalties to be ~id by l,~e ate: (a) on oil, twelve end one-half ~t sent ( 1~ ) o~ t~t pr~ueed and fr~m ~aid land, lo'~e delivered at the wells or to the at, it of ~ot into the pi~ line to which tbs well~ may be commented; l.e~see may from time t,~ time t)urehnae ~ny royalty oil, peyinl t~etefor the market value tn the field ~er~ produced on the ,tar ~t ts rue to th~ ptp. line ~r ~t,,rn~e tan~. ~b) on laa.'iucludmI eainlhead les or other ~Meous ~ubstnnc~. produced from · ~d lam~ and sold or ~ae~d. the market value at the well of twelve and one-half per sent (IGC%) of the IM ne ~ld er u~, I,rovide,t thn~ <',n ga.~ so[d et the well the royalty ~all be tw+lv- and ese half per sent ~ 1~% 3 of the amount realis~ from ~m.h ~alr~: , c ~ ~n ~lphur. ot~e dollar (01.~) pet IonI ton mined and marketed; ~d) on ell other minerals, ei[ht per sent ~','~ ) ~,f that mm~d and m~rkeled ~n kind or value at the well ot ~ne. at l..~ee's election, if l~e ahall d~neover ~an here~mdet r)n ~a,,t lal~(:l or ,,n t~,:,t unitized ~ i~h any of ,aid land, [.~ee m~.v at any time or times du~nl or after the prtmary te~ l~d at [.~Raee'~ elretiou, pay l.e~et a, r,,yalty a sum equal to the recital herv~ila~tet provided ou the acreage then held by I.e~ee hereunder, whereup,m it .hall ~ con,Meted for all pur~ses of ' his lea~., that g~ ia bei~ pr*luted hereunder from said I~d for a per'~ ~,f one year: ~uch year to commence ~ the annive~ry of this lease nest pr~inl uueh payment, unl~ the ren.t, al, if any, w h,cl~ ae,'rued oe such annive~ wu. Paid.. in ~hieh .event lUSh year at, all commence on the aanive~r2 t'tii~ lense next fell°wm$ %~h ~ym~t. Any such ~yment m~y ~ made in tbs s~ne manner u provided e~where in th~ lea,e for the payment .nfrental. and shall ~ m lieu of the ~nt ~t ee~ ~e ~me ~mod of time: but Ihall eot ~ in lieu any royalty based on actual prodeetion ~e may ~, f~ o~ toy~ty, od. ~, e~l and water $evelo~ f~m ~id l~d l.e~ee, for all o~rations bare.der. I U at ~ time or t~m~ l~t the prima~ tern or w ith~ tht~ (8) months b,.fe~ expiation of the ~mary tern, ~e dffiH~, mini~ or rewor~ o~~ ~ ~ ~~on ~ ~y mm~ warms tn~ ia) mOnthS at, er ~en tam, son. ~ ~ ~alI ~ve the ~bt bender to ~et eperl~ by m~ now k,~o~ or ~nown for ~e i,u~ of ~eat~ ot feeilitat~l ~e dmHml 'for, or pr~~e el, oil. ~ ~ oth~ bydt~ar~n, or minerals, hy or thmelh a well or we~ ~ ~id ~, to~ wi~ the ~ht ~ dHll wel~ or m el~t~ ~elb for ~e p~ of mjeetinl into land oil, ~, water or other au~ne~ pr~u~ ~ .id 1.~ ~ o~et ~. When ~eb o~ ~, or other subs~ne~ are ~md ~oe ~e Ibov~mm~on~ o~tltionl, the ~ p~~m ~ off, ~ et o~et ~ta~ from such well or weUs ~all ~ eoy~ty-~e ~til ~e ~t or, at ~'s ~n, the ~, ~ ~e o~, ~ or other ~t~e~ pe~ue~ ~v~ ~ ~ well ~ w~, ~ ~ ~I d ~ dL ~ ~ ~ ~~ ~ ~ or i~t~ therein. ~et sueh ~1 ~o~, the p~~ ~~t ~ ~ ~~ ~ ~ ~ ~ ~u~ol ~m ~ well or wells upon which the ~yd~ ~ ~ ~ ~ ~. ~ ~ ~ ~ ~ ~ ~t ~ ~r faf, or ~y ~m~l or roY~ty on ~ ~ ~ ~ ~ fM ~ f~ ~ W~ ~ ~b ~, ~ ~ wnue me Mine is not ~ W~lter Pederlen &nd La~l£& L. Pedersen Ali o! Loth ~, 4, ~ · U, Section ~il of the N~, ~:tlon 2~, TSN. I~gW, ~~s J. Hlrrls~ ~nd ~lore~e Itarrlson All o! the E~SE~, 50, tton 12; at~d Lots t ~. 2 o! S~'tion 13, T~N, ~, All of the F.J~I of ge.etlon Il; :~nd t~t M, S~tton 22, ex~ttng th(.ref~ port loam de~(;rtb~d ~'~o~ In ~)k IV Pngo ~ and In ~ok V P~e of Kenal R~co~nl Pr~lnct, TSN, ~l, ~M. 2. J~ A. ~rll~ 8~, Sectlo~ 24, TSN, RI~, 3. F. R. Keeler h(~este~d ~, Section 2~, T~N, NIOW, ~. 4, J. 'Fatlnan h~estend Vlrgil O. ~ler l~tl 2, J & 4, ~d N~SW~, ~:tlon 19, TSN, 6. ~)bert ~. Murray ~t~on 30, TSN, ~, ~M. 7. D. g. Culver 9. D. ~Gee, Jr. [~t, 2, 3 ~ 4 of S~tlon L7 t.~ts ~ and 18: ~ts ~. ~d 2 of ~t]on 30; h ~HE~ ot Sect~o, fsi. Egw, ~M. RgW, SM, lt. Morris M. "t.~t' ~m~ z{~{ ot section tz, 'rs., ~w, su. 12. Josne W. Robinoon ~~, EJ~E~, SW~E.~, of ~.tlon 17, T~, ~, i3. ~ipb K. ~rgnn SEiSK{ nr 'S~tion 8; W{SW{ S~ion 9, TSN, ~W, 14. Boward Luther, Pioneer Realty (or ({~arlPs Tulin) Id. Ilmid I. 17. h~onfl E. T~W, ~, SM, 18. Willl~ J. ~elpf fSN, ~W, ~M. 19. W. ~. Part inRt~ h~ente~d (e~tate) E~>;W{ and W{SE{, Section 9, TSN, ~, ]0. Eugene C. Weaver NW{ of S~tion lO, TSN, R~, 21. D~uy Estate (SW{ o{ S~tl~ 15, TSN, ~, SM.) .A. P_P.r2~?_x..P9 t".. A,:.r 155.38 52. 16U.OO 160. 156.46 167.39 167.29 1 4,1.2~- IGI. 94 15~. 95 12(). 0() 40. 160. O0 ! 60. ()0 160. t ~(} L6(). O~ ( 160. ()¢)) Hayes' Zoe D~vln (o the r) Melveta Car~er ,~FW¼5E.~ ~f i~ection 15, TSN, R~, SM. Vernon H. El~b~.rg (~{~E{ <')f Se<. t t,,~ 15, ~ts ! and 6 ~}SW{ <.,1 S~tton 14, TSN, ~W, SM. 40. O0 (x .51. t 3) UO, 160. · ,, I, II3.57' ente~ltne, '. .. ;tion 11; Sect ton 14; lO; all In 308.60 tit). O0 ,""~" ·. ..- · ka of account showinf the am_oust'or o., . and other, h. ydroear~ or miserere j)ruuu~, ..... . .... ,' he re boo ' etlon run fr.m said land lurlnf t p - c~inf calendar month, ~d ~ttlement therefor ~iu oe m~e o~ween m ~ · oynble in money with r~pect to production r~? ~om M~d land dn~uf 8n~ calendar re(ruth may be I,~hi .o~ Inter than the t day of the next ~ee~diu[ ~lendar mout~; provided however, any po~y hereto for royalti~ ~under shall ~ I~ than T~' l)olh~ (010.~), L~ee m6y wtihhohl payment un~Jl tho amount ~yable to such p~y ~ or .ze~ the sum of.Ten I~lla~ (OlO~). in which event payme~s~ shall ~ made at the next r.[ulnF ~ettlernest ~te; ~d h~bet p~fid~, that in 8ny event, all sums theret(,foee seeru~ and un~d du~n8 ~y eai~r year ~ali ~ ~ not bmr tho Janu~ 31 maces eauMd b l.eaeee's operations to houses, barns, ffrowinf crops a~ fro. ~ ~ ~ ~ ~ah~l~ford8~ _Y .. shall b ~ ei~r th~ two h~~ (~) f~ to ~y ~d~ or bl~ now o~ ~aid land without the ~t ~ ~. l~ee ~1 have the ri~t it ~y time to ~move mD l~e'o pro~fly ~ flzturei, i.c. ludmf ~he ri~t to draw and all e~. ~e shall d~ll ~y well which a ~ouably p~dmnt ope~tor woul,l drill under the nme or ~mi~ eJ~um- stancu to revest 8u~tantiM drnina~ from M~ land b~ wells Io~t~ en ~,Jjoini~W land n~,t o~-ned by l.~r. when such ~-;-.~ ?not ,.om~en~t~'~ b~ counter driinile. No defauH of J~e here'~(ler w~th ~fl~o..f t, a y ~Jl, ~e or ~ion ~T~'~-~ '~iF l~'o riflers wJ~ ~t to uny other well, mine or poetics of thru 8 ~e ri~ of l.~r s~ I~ he~d~ ~ ~ ~fn~ in whole or ~n par~. ~o [,re~,'~:t or futur~ division of l~Mor's ownership u to diffe~nt po~io~ or pareeb of ~id land shall operate t- enlarfe Ihs ,'~bl~goti~tm or diminish the rights of Le~e, and l.e~e'a o~rntio~ may ~ eonduct~ witho~t ~[ard ~o any sm,h dsc i~i,)~ If alt or any pa~ of l h~ m a~i~ed, t~t) la.hold owner shall ~ liabl~ for ~ net °r om~ion of any other te~h~,Ul .wuer a~,l fattu~ by one to pay re.~! shall not aff~t the r~ghta o~ ~hem.-'~n~ ~S a~toonabl~ ~ proportion to ~ Whenever, as a r~uH o~ any eat~ b~yond l~'u control ~such ~ fire, flood, wimtuonn or Lather Act of (lt~; law, order or ~ulation of any ~ve~mental aseney; or inability to ~cur~ men, ~terial or ~ras~sporxat-,. ~ l,em~ ia pr+vent~! from e~mplym$ with any obl~ation of th~ le~. I~ shall not b~ Imble for damages .r forf. itur~ of this l~e and ~ l~e a obligationn shall be ~ded so long ~ aurh ease ~ia~s. If by any such cause, all oporati.us and all production hereunder are prevented after the ex piration of the primary t~rm, I.e~e may at any tmse ~r times and at i.~ee's oleeti-n pay I.~or ~ royalty' (in additiou to any royalti~ ~ on ~tuai pr~uetion} a sam equal ~', one fo,~rth ~ ~,'Yt ~ of the rental '~- hereina~ve provided .n the acreage th~n held by i~ h~m~nder, whereupon it shall be e..s~,l~,red f~r all pn~on~ of thru Ieee that oil, ~. hydr~mar~s~ or other minerals ara ~g produ~ hereunder for a ~riod ,,f ~hree months from the date such payment ia made Any such ~yment ~y ba ~de in th~ ~me' ~ar ~ pr~svided ~laewh~re in this I~ fog aha ~y- m~n~ of 10 If 1~ shall fail to Imy any l~l~nt of ~yalty or r~l when daw and if ~uch defauR ~1 sundae for eri~ of 15 days aft.r ~e. ipt by 1~ of w~tt~n not~ ~sr~f f~m I.~:,~ t~ 12e~ee. theist.t? o. pti~, of L~,r, this ~ ~ tarminate as to the ~ion or ~rtso~ ~a~of ~ to wa~n t~ la In o~gauit, provnc~o, n.~ ever, that if thero a t~(,na fld~d~pute as to the amount du~ and ~! uvd~puted amoun~ nrc p~d. ~id 15 day per~,,d shall be exleuded until da).s after such dispute ~a settl~l by ~1 cou~ decree, irbitral~o~ ~.r ,,,,,,,, ,,.~r n ,:h,'ek therefor to l,~or at -~llO~.e. 8 dos.ignatl~, which he is to fur. n{sh ~n · ~ "~-~"~'~' ;,:~':t }.e~e,. may~ at its ,)pti.ri. pay any °r all r,,v&ttie-, r,.,~t aim avd '~h,.r {,m~ m,..~t~ l',. v{,~,l~ i,~ ~,. :,~y h~ro~mder hy mailiog .:..~:... ~... . ...... ~ .~ ..................................... ~ ...................... - L ............... - . . . · ........ ndmini~trnt(,~ ~le(~e~or~ :,.,l ns.i~s of I,~r. and c,~eh a~ h,,r~ly on behalf of I~sor nM on behalf of the hat.. es~ut,,~. (-)f them, to collect a].t receipt for all .nmi of mOl~ey d~se and paya),l(, fr,,m l,.~se,: ~o I.,.a.,~t here~nder, and ~ ~tth' ,,f the land or mineral~ covered l)y ti~ia lease and no a~ignmettt of r~[{t,tis or to)allici si, alt I,r b]n(hl)g upon l~uee or ~he ,t,.p,,~itary ~tn~i[ bot~ l.,elqee nnd {he dep~itary haw iseei~ furnished with wr~tle,, evide:)er lhoreof haliafaeto~' to ~h,.m. ~aid ,iej)cmitiry a{~)v- named thall continue to let M much until xlie (-,wner~ a~(t hulders of at lean1 two.thirds of Labor's ~tal,, hereunder ,hnll in writiul deli{mate · diVe.ut ,}el,(miti~ ~d holily I~.nee in ~'rui,,g a~ ttJ (,~ee in ~n ~ ~l~f,,r~,ii. of the name and i, ld~ of such new de~mitiry ~e payment ,)f a~y am{ aU re~ta{n, r,,yaltie~ and other plym,.uti },:.r,-,,,.{der by l..e~ee to the de~itary demi~ited her~iil or to any o/her d,.l)-~itnry hereafter d~signated by L~r, ~. .~,,,I ~h.l{ b~ ~ fidi acqoittauee ind d)achnrle of I..e~ee ()f ami fro.) any nn,i all Iii{,ility t,, le~,,r, lnd to the kei., ~,.I,t~ui~trat-~, .ueee~o~ at~([ nMi~ of l.,~or, emi (.ach of ti;em, for aJ~)' pall hr ~t,eh troikaS, roy:~iti~ or otheT ,,.,,t i...~ee w~ll n,,t b. re.p()~ible it Iny time for t~e die.iLion or diibu~ment by any allah dep(~flary of all hr a~.~ pitt Il It ~., agreed ~hat if I~ own a {ese infarct in the oil, ~. h).drm~arbona and ali o~et m~eral~ m ~id la-,{, v},,. ,.afire a~d .saliva,ted fee simp}e ~tat,' ~hetem. lheu a~,y rovalti~ renta}~ ~{,{ other pavmen~ harem p~a~ for I., I,atd Le~or ,,ul~ m the p~portion w~ch L~r'a intem~ bear. t,., th,. wi~ole ami .n~ividod fee. la the erect L~e'~ ..~a~e harem,der .~ull fait, for a eau~ ~,ther than l.-~e.'* ,]efa~dl her,~u~,,l,'r, i. retard t,, a.~ {m.ioa~ of ~id laud or any .~tere~t thereto, such failure shall not aff,'et or invalidate Levee's ,.slate here~md,'r in regard Ir, Ihs remaial~ ~,~ie.e ' ' · I t~e,. m and th~ I,,ase shall noverlhelr~ continue in {uU fores a~ effect wt~ r~et to .a~(I l.ml,.or the remainm~ la~ .r~_l, .: ...... ;-:--- '-.-r-~,. there,,~ and l,e~e shall .ct he a,..,.o~,nt~l,[r to I~"~ fo~ any ,:)"~ter ha~ faired. If and whenever it shall be neee~nry ~o to do in o~et lo protect I~e,' 'm it~tereut un,let thio Je~, ru.~ et iM option ~y nad di~hn~e et ~ny time My mert~fe or other lien n.w or heteq~er attaching Io ~id IMud or any l,,r~ there,,f and in s~.ich event l~s~ shill be labrolit~ to ill of the rjfiit~ of the owner or holder of such mort~nfe (,e other I~e~ ami Le~e may in addition the.to, at its option, a{,l,lY tu Ihs dmeharre of a~sy snail mortfafe or other lien. or to the r~.~,uburseme~,t tn i~ee f~)r any amount ~o ~ by it. a.y ~n}~. toyalti~u ,,r .lher ~u~ aeeruinl or payable hereunder, to tt~e (~ ~et, of the l.n(l~ to ~'bieh ~.ch moflllle or other lies~ itt&abm. Which ]cases taken to~ett~cr ar,~ rcfcrr,'~t ',.:' .... ; tt~,.' "lto~.,e,~e~.l~r tl',t: Sta!e. of Al;.:~ka, to- atta,c'hed to Para.grap'h 1. -of -~ . \ N \. Tat}se land$ des~.ribed", o,~ the li~t t hi s I e a s ·. (l. nitial hereto. , . \ N Now, if the Lessee herein, his heirs or at, siRras shall ,.~itl:i:~ ~ne year frown ti,is date con~n".ence "drilling op,.~rati(,r~" aa t}~at ter~n is ,lefined in this lease at a location to be ~¢!ected b) I e geologist, upon any or~e of said tract~ nf [and i~ Sltl~i "Jl,>r~;esteader U~tit~" and shnll thereafter aith due diliget~',~ i,rt.,.,,.,.'utc arid carry on such o~rattoi~s to the poilqt of cor~pleti~,n of d~'illi~ to a depth autltcient to test the l.>rodut, ing forrnatit,n (, ,)-;~::.or'dy b,r,t)x~,l~ a J tt~e llemlock balxd)and ~ound in the b~ansoa [iix'er {i~'lr] ~orth ,~f lands he'rein described; b'f't6'~6i~-n,e rcial pro, i~,-ti.,n t,t oil, or other n'inerals at a lesser dept},, t~,t',~ t:; ~x~¢h ex.,.-t this s' all.r'~main in full force and effect for a tern, ~ five y..:,r, this d,ttc ,t~,d aa long tl~ereafter aa oil, ga~, or t)the r ~:,i~lerals I~,ay be produced in con~merclal quantities frat'~ ti;,: l~:gl t ~)vered by ti,is l,:a.ae as first herein abovu de sc ril>ed, t;ut, a~,,i x,, case such drill- in~l ot:~er.ations .,re not so co~;q~n~nc~d a~td pros .,'ut,~'t a~ a~vt: pro- v,d,'.:d, tbia 1..-ass st:all a,.~ton'atically tertninate. ';ot[~' ;;.~ c '.-.-..-...'~ berct~ shall et't'et:t a tz~,itizatiozz of ~;cvera't :rs, ts ,,f t',,~ i, 4sots to extend k),~yolM tl,e expiratiol~ { lniti.l hr- re: ll-a AG~~NT ICU%DE BY' AND B~TWE~ ALL L~SOP~' OF ~H~~[.' · -,~ ~ _ ' .'.~ ~'~e ~ ' ~dersigned land-owners ~o' have signed a leaae wish' ' ! !ess~.,. '~SP group of lessors, from this agreement. , ' . '\ /l FI;. OIL, GAS AND MINERAL LEASE THIS AG REEMENT, made ~mt en~er,d i~ ~s ~ t~..:~.s-t,.-.-~y of .. Decembe ¢ . 1. Jetta .G. Bradford and Ruby Bradford, hi~ wife. 2. Ji~es A. Bergsrud' 3. F. R. Keeler ho~emte&d ''- 4. J. Tu~lman h~es-tead " 5. -' ~i~%~i.i' O. D~I~r 6' ~ ~rt g. ,~r~y '- ' Y. D. E. ~lv~r -' · --; ~. D.'~,.gr,. .-"-' ~ _~. , ,, l!.~ls ~. ~u~~ ~d ~rl~.~','--hl, ~' ')t~'~,'~t~'..~;>~~"~..-~o- ~~ ~a w~,.' ." :~ · :-,lil ,,"i~;'.~tle't:,. ~~ ~l!ll":(~! .~i" ~i~) ' 16. Harold H. Cleary ~ond E. Glrve~ ad Irene 61ryes, his 18. W. J. ~elps ~d wife ~ene C. Weaver and Arlene. Weaver, his Wife. DuGay estate (Cou~en, Hayes, Zee Dav$~ · ?) 22 Melveta Carter V~mon H. Enbarg and Alic~ ~b~rg (~d others) st~ley ~pson a~ o~e~. 25. W~lter Pederaen ~d ~u~ L. ~d~n, his wife. 26. ~e~n E. Saunders Mota Pattersm 28, John J; Weaver ~d Gladys R. Weaver, his "~0," ' Slil~ Sa~ers.-'' :.~rli~n..S~l~erS.'-" .' '(5~' each). 33. Duane K. ~Van ~d S~na G. ~Van, his ~ife. 34. J~es E. ~vis ~d Blanche Hovls, his ~lf~. 35. J~e~ E. 36. Paul 9.. ~usko ! o 37. 4~lomas J. Harrison and' Florence Harrison, his wife. 38. Charles J. Dozer 39. T. E. ~taker ~md Edith ~tlitaker, his wife. 40; J~n F, McFarl~nd ~d Alo~ha McFarl~d, l~is wife. 41. Edgar L. Law and Lucy ~w, his wife. 42. J. C. Lawtou and Lueila Lawton, his ~it~. 4~. Francis Mull. eh ~d wife. ~. J..C. Farnsworth and ~lly Farnsworth, his ~ife. 45. A. A. Farmer and wife. 46. L, B. Nafi and ~eresa Naff, his wife (and other) 47. Gaor~e A. Dilis and Bose Diggs, his wife. 48. L.E. 4~, ~. ~nno.l ly 50. John G. tian~ilc~ 4 Elsie H. '~.ey~ his 1'.,'2. O0 [:: 160. O0 160.00 - ,' 160. O0 167.39 167.29 144. 161'. 94 108,95 " - ,,' 160. O0 ~ so. Oo , lg~, O0 , 160, O0 80. O0 160. O0 160. O0 160. O0 40. O0 151.12 231.66 160. O0 138.86 160. OO 160. O0 1'60. O0 .. ~.6q. ,. ,1 ~0.'00 , 40. O0 160. ~69.47 163 ,'7 155.3 104.38 3. O0 140. ~0 64.12 31.00 16(_). 00 160. ()0 40. O0 1St), 37 i 60. O0 308.6V 80 .'(}0 147.28 t. J,d,~ G. Bradford and Roby Bradford, his wife. F. R. Keeler b~eate~ 4. J. T~~ b~en 7. D. R. ~iver 8. fr&~ W. J~ ~ Sa~ E. J&~e, hie wife. ~. ~, Jr. 1o. ~y F. he 11. ~rris M. ~--~ ~d htricim co~en, him ,ifa. i2. Jesse W. ~btne~ end Ml~ A. ~bi~on, hie wife. 13. ~lph E. ~rg~ a~ ~von ~rg~n, bis wife. 14. H~a~ ~t. her, Pioneer ~alty (or ~rl~ Zul 15, W. W. ~ynolde b~eetead 16. Hu~,ld H. Cleary 17. ~nd E. GI~eI mid Irene Gtrvee, bis wife W. J. ~elps ~d tile 3~. ~ay estate (Coursen, liayes, Zoe Davis & ?) Ii. Metveta Carter 23. Vos'non H. [,,berg and Alice En~rg (~d ~. Stanley ~psofl a~ other. 25. Walter ~..dersen and ~uFa L. ~de~en, his ~6. The ~.~n E. ~. ~ta ~ergon 28. Jq~n J, Weaver and Gladys R, Weaver, his wife. 29. ~artee W. Stiles 30. ~lat~e Sa~tde~. ~rllyn ~i~.derm. (~ e~h), 31. Fr~ ~Call and ~elma F, McCall, hie wife, 32. Kenneth D. 33, Duane K. ~Van and 5~na G. LeVan, btm wife. 34. Jmes E. ~vts and Blanche Hovie, hie wife. 3~. J~ee K. 8~pter 36. Paul D. H~ke 37. ~mm J. Harrtson a~ Florence ~arrtmon, bis wife. 38. ~arlee J. ~.t't 3~. T~' $'~-'~''taker 8,0 Edith ~tt,ker~. bls wife. 40. ,vohn f. Mcfsrlafld ~d .iletba ~farl~, hie ~tie. 4]. ~KaF L. ~w and ~Y ~w, ~li wxte. 42. j. c. l~vt~ a,,~ Luella Lawt(~, his wife. 43. Francis ~lIen a,~ wile. 44. J. C. FmFilIw()F~ and ~lJ~ Farns~)rth, bio wire. 45. I.A. Famer ~ wife. 46. L. B. Salt and ~eresfl Naft, his ,ire (~d o~her) 47. George A. Dtgis a~ Rose Dtl~s, his wife. 48. L.E. 4~. B. Co[m~)l I y ~. J~m ~. Handley a~fl Elsie Handley, bio w~fe (& 152.00 160.00 160. 160. O0 156.46 167,39 167.29 144. tel .94 t 6¢). OO 120.0() 40. 160. OO 8o. OO 160.O0 160. ! 60. O0 40. l,~i. 12 231.66 ! 60. O0 I 36.86 150. O0 160. 1(50. l ~0. OO 40. O0 t 6o. ~69.47 163.5'/ IS5.38 1 ~4.38 3. 140.OO 31. O0 t 6¢). ()(. 160. 40. t S(;. 37 16(). O0 OO. 1.1~. See. Sec. 1~: E~SE~ ~, i H.~_~. 9 ~.~ Sec. Sec. 12~ ~clusi~ ~ec. Sec, [5: D. O. ~ttbewa ~8 160.00 10-9-6,~ 12~ ' none lo-9-6e 58'0 ~. o. ~~n~ " 6~ x~o.oo 8:?-66' ~-~ - non, ,., -! .- ucc, 3.2: e. R. em~ak and Pcrccnb%g~ $:~~--,' ~chfield Oil Co~oration- 50'~ S~nd. ar~ Oil Company of .. ~lifo~ia - ~ _ - . _ ~. D,'~Ya~ -- ~ ~ - < . . . -,.~~ · Renb~-t · $ ~,o.oo ',.' · · }forking Int, erc'-a and · Richfielt 0~.-! Corpora'tto:~ Standard Oil C~.;tf.;-~.ny o¢ California' ' - .1 . - .o ,o- 'I including all oil. Sas sad all otb, :arbona and'minerals undorlying i&k, us, romb~ ,~loementa and whi~ ~e~ Or ad, sin s~d 1~ ~1~ ~ ad~t~ ~ ~e a~ d~~ ~ ~ ~o~ ~e ~e ~d own~ or eh~ by l~r; and con~m~...~O0 .................. ~ ..... ae~ Of ~d, more or lin. T~ ~ ~ cover ~ in ~ld land now owned ~ herenr~r sequl~dby ~r, ~en ~~ ~t~ ~ ~e undi~ ht~t (~ ~y) d~ri~d above. For the pu~ose of eale~tgn~ any pnymenM b~ on ae~fe, ~e, at ~'s o~iOn, ~ net ~ ~ ~d its constituent pa~b contain ~e aere,~e 8~ve ~ whaler ~ey ~y eon~.mo~ or ~. 2. Subject to the other provisions herein contained, this lo&se shah remain in fores for a IM~ o~t~-Te&t~ from ~ ~nd, to ? aenvere~ at the wei~a or ~ ~e e~ ~ ~r ~to ~e p~ ~ to' W~ ~e w~ ~Y ~ e~eeted; Le~e~.~y ~m ~e ~ t~ pereha~e ~ ,ta~ ,t ~ ~.~.~e p,~ line or storafe tanb; (b~ ~ ~ b~.~~[~ ~ ~r ~~~ ~u~-f~ sa~d ~and ~ sold or ~, the msrke~ value at ~e ve~ of tW~Ve od on~h~"~ ~t (~) ~ ~ ~ prowded that on g~ sol~ at the well the roy~ty ~ b ~dve od ope.~ Per ~t ~1~) of ~e ~t s u c h ~les; (c) on n t~tph ur. 'one dui hr ($1 .~) ~ 1~ ton.mh~ ~ mrket~; (d) on eO ~r mim~ ~t of that ~n~ and marketed in kind or vihe it ~11 or ~n, a~ b's ~fion. 'U'~ ~"~ov~ 9~ a~id land or on Jat:d unitized with any of said I~, ~e mY ~t ~y tim or t~u d~-o~-'~ ~ ~m~.'~.~d Le~m 'a ~etion, pay l~nor ~ royalty n sum ~MJ to ~e ~ bare,alter pm~d~ on ~e ~~ ~ held by'~e he,rider, whereupon it shall ~ considered rural ~ of ~ IM ~at ~ b ~ ~~ he~~ ~~ l~d for n ~ o~ one year: such year to ~mem ~ ~e ~niu~ ~ ~ 1~ Mxt ~~ neb ~yment, .~lm the rental, R ~y, which ~ee~ed ~ such anmv,~ wn ~d, h w~h ~ut u~ y~ ~dl ~~n~ on the this 1~ ne~ following such ~yment. ~y au~ ~~t may ~ mdc h ~e ~e ~~ ~ p~~ lam for ~e ~ent ofr~tal, ~ ~all ~ h'H~ of the ~t~t ~~ ~e ~e ~ ~ ~e; bu, ~ any ~y~ty b~d on aa~;r~uetion. ~ M ~ ~ of ~~,-o~, ~ ~ ~d water dev~o~ ~ ~ ~ by I~ss~, for ali o~ratio~ bare,der. 4. H ~$ a~ ~me or timm ~r the p~ ~ ~.wi~ b (B) ~~ bfo~~a~n of ~,~ ~m, o~~ ~ aH produo~on h~der ~ ~ ~ ~ ~,.~ ~ ~ not t~~ ~ ~e r~d~H~ m~ or rewor~ o~mfl~ ~ ~~~ ~~ ~h thru (~) months ~ ...'., ~J:,~ldsa~ ,halt.have the rifht hereunder to oesduet ope.~ by ~ now known or uaknown for Se P~ of ~d3~lty-f~ee ~nt~'the ' - i1~ TJiiie~'. op~bn, ~ d lhe o~ Other shah be'i amouht or, rubs, faa or subst&neee produoed and mvod fi, om .neb well or wdlA, ~ equal that of tim off, pta or otb~ ~ se uaed~or ~ted therein. &tier su. eh full recovery, the produetlou ther~fter shah be oottsddeeed to b b true peoduoti~ time mid well or wells upon which tb royalty herein epeeifbd ~ be based.' IJem~ dMdl m bo ~ to 8seot~. te'Idmor, b,.or pa~ rental or roy..ilty on, oil, gao or 'wuter produood from enid land or other laub~ used far o~ uadbr this loam, ineludbq .eper.?uons. on mid lead or udjsoem lands for the fotqqob~ puepem~ Wares ~ _'~ tdmse ma~, tf sdad vhib the indue m no~ use~ 6 The royalty aforesaid altall be ascertained, computed and paid monthly and Ltnmee shall keep true and correct books of account ~howing the amount of oil, gas and other hydrocarbons or minerals produced, saved and removed from said land. Lessee 8hall furnish to Lessor monthly written statements of the production run from said land during the pre- ceding calendar iaonth, and settlement therefor shall be made between the parties hereto as herein prbvided. Royalties payable in money with respect to production run from ~aid land during any calendar month may be paid not later than the last day of the next succeeding.calendar month; provided however, that if, at any settlement date, the amount pay&ble to any party hereto f,,r royalties hereunder shall be leas than Tan Dollars ($10.00), Lessee may withhold payment until thc amount payable to such party equals or exceeds the sum of Ten Dollars ($10.00), ha which event payment shall bc made at the next regular settlement date; and further provided, that in any event, all auras theretofore accrued and unpaid during any calendar year shall be paid not later than January 31 of the sue~e~ling calendar year. 7 Lessee shall pay for damage~ caused by Lessee's operations to houses, barns, growing crops and fence. No well shall be drilled closer than two hundred (200) fe~t to any residence or barn now on said land without the consent of Lessor. Lessee shall ha~e the right at any time to remove all Lesaee'~ property ami fixtures, including the right to draw and remove all casing. Lessee shall drill any well which a reasonably prudent operator would drill under the same or similar circum. stances to prevent substantial drainage from said land by wells located on adjoining land not owned by Lessor, when such drainage is not compensated by counter drainage. No d~f~.ult of ][~e h~r,under with respect to any well, mine ~r portion of this lease ~hall impair Leases's.ri~hts with reape6t to any other w~ll, mine or portion of this lease. : 8 The rights of Lessor and L~aase hereuml,r mir be as~igmed in whole or in part. No present or future division of Lessor's ownerakip as to different portions or parc~.ls of said land shall operate to enlarge the obligations or diminish the rights of Lessee, and Lessee's operations may be conducted without regard to any such division. If all or any part of this lease is assigned, no leasehold owner shall be liable for any act or omission of any other leasehold owner, and failure by one to pay rental shall not affect the rights of other~--rental being apportionable in proportion to acreage. 9 Whenever, aa a result of any cause beyond Lessee's control (such aa fire, flood, windstorm or other Act of God; law, order or regulation of any governmental agency; or inability to secure men, material or transportation) Lessee ia prevented from complying with any obligation of this lease, Lessee shall not be liable for damages or forfeiture of this lease and I~esaee's obliirations shall be suspended so long as such cause persists. If by any such cause, all operations and ali production hereunder are prevented after'the expiration o! the primary term, Lessee may at any time or times and at Lessee's election pay Lessor as royalty (in addition to any royalties based on actual production) a sum equal to one.fourth (V4) of the rental hcreinabove provided on the acreage then held by Lessee hereunder, whereupo~ it shall be considered for all purposes ef ll~i.s lease that oil, gas, hydro~arbona or other minerals ar~ being produced hereUnder for a period of three months from the da~? such payment is made. Any such payment may be made in the same manner az provided claes'here in this le.a~ for ~ pay- ment of rental. 10 If Lessee shall fail to pay any installment of r~yalty or rental when due and if such default ~hall continue for period of 15 days after receipt by Lessee of written notice thereof from Lessor to Lessee, then at the option of Lessor, lease shall terminate as to the portion or portions thereof as to which I~essee is in default; provided, however, that if there a i,,,~a fide dispute a~ to tile amount due and all undisputed amounts are paid, said t5-day period shah be extended until days after ~uch dis. pate is settled by final court decree, arbitration or agreement. 11 AIl royalties, rentals and other payments payable in money hereunder shall he paid to l.e~sor t,y Lessee u~ailiag , t'~:~g a ~b~'ck therefor to l~easor at ....... ~.~.~.~ .des.i,gna~i~,..~hich...he .i$... ro,..fu~i~h-.,in · ~ri~i~, .to ...O~an...R. .... · ~tl~ ............................................................................................... i.ess,,e re,y, at it~ option, pay any or all royalties, rentals and other payment~ paya!,l,, in money hereunder by mailintr ,l,.l:~'et'ing a ci~eck therefor to ..... Laa~o~.a....deai~a.te.a...b~k ........................... ................................ ........................................................................................................................................................................................... nuc,',~ssors a~d assigns, herein'desigmtted by Lessor as depositary, hereby gray,ting tc~ said rtcpositary full power ~llh,,ri~y nn bvhalf of Leaner and on behalf of the helm, executors, adminiairators, s~ece~sors and as~i~a el l,ea~or, and Iht. tn, to colle~:t and receipt for all slims of money due and payable fr{nn I.essee :o l:essnr h,~reunder, and t.o'aettlc all acer,nuts and accounting of rentals, royalties and other p~yments payable in money hereunder. No ch;rage in lhe ownet'ship lhe land or minerals covered by this lease and no assignment of rantals or ro>'alties shaft be bi~,ding upon l~rasee o~- d,.positary until boll Lessee and the deposi[ary have been furnished with writte~t evidence thereof salisfaetory.t~> depositary above named ,hall eonhnue to act as s~eh until the owners and ii{riders of at least two-thirds of Les{.o~' ,,;tat,· hereunder shall in writing designate a different depositary ~ld notify l~essee in xvriling at its office in Salt ~'r~ci,~,.t' ~ '~tltfnrnia. of the name and address of such new depositary. The payment of any and all re,/tala, royaltic, s and other paytncl~, t~,,r,"~tt':der by Lessee to the depositai'y deaioatcd herein or to ~ny other ,tepositary hereafter designated by Lessor, as afore.- ~hall be a frill acquittance and discharge of l~essee of and from any and all liability to Des,tot, and to the helm, executors, ,td,ninistrat,)rs. sueeesso~ and assigns of Lessor, and each of them, for any part of such rentals, roy;tltie~ or other l~,'asee will not be responsible at any time for the disposition or disbursvment by any sneh d'et)oM~ary {,f all or an~' l,ar~ n,~l(ys received hy it hereunder. 12 It is agreed that if Lessors own a less interest in the oil, gas. hydro,.arbons and all other mmerai~ in said ia,,d, than ,.~ti~'e a~,,l ,an,livided fee simple carat,, therein, then any royalties, reheats and other paytaent~ herein provided for shall imi,l I.es.~or o~tly in the proportion whfeh Lessor'a interest bears to lhe whole and ttndivkded fee. In the event Le~.,.ec':, ,--I;~le hcret~l~dcv shall fail, for a cause other than l~asset~'s default hereunder, in regard ~o a~kv portion vf said land cr i~erezt ther,,in, such faii;~re shall not aff,'et or invalidate Lessee's estate hereundc:' tn reg;:rd to the remaining portio~s of 1:~ ads or tt,e remaining interests thet .in and this lease shall nevertheless continne in full force and effect with reapeet t'e~naining pottle, ns of said land or remaining interests therein, anti l~e:~ee shall not he accountable to Lt~sor~ for a~,y l,~y~ttent thcret,,fore made with reapeel ~o said portion of said ~and or sucit i~tereat in regard to which hessee's estate l,evc- ~;,;,ter I;as failed. If and whenever it shall be necessary so to do in order to protect Lessee's interest under this lease, Lease,-' st its option pay and discharge at any time any mortgage or other lien now or hereafter attaching to said land or any ~hcrenf and in such event Lessee shall be subrogsted to all of the rights of the owa.-.r or holder of such mortgage or other and Lessee m&y in addition theret'o, at its option, apply to the discharge of any ttleh mortgage or other lien, or to the t'..~i~al~ursement to Le.~ee for any amount ao paiit by it, any rentals, royalties or other sums accruing or payable hereunder, to o;vlti, l-of th,: lands to which sueh mort~ege or other lien attaehes. '12-'a' This lea'se is one ota number of separate !eas!~s (ff t:i~o same da~e in favor ~ ~he sa~,e Lessee, exac'~ed'by va. riou~ Le~ors and which leases taken ~ogether are referred to as the '~Homesteader Unit," and c~er ali or a '~art. of the fellowing described lands in t~,~.State of Alaska, to-wic~ Those l~nds described on the lis~ a~tached to Paragraph 1. of 't~is lease. {Initial here: , Now, ~ the Lessee-herein, his! heirs'or one year from this date. is defined in this lease at esSe~'s geologist, upon};any i in said "Homesteade~ Unit," a~ ska~'t~ereMter c'arr~ on such o~rattons to the pOXnt ~ comple dept. sdficient to teats, the producing/ormation (commo~y. .~ . know~, a~ the HemlOck Sand) lands herein des or othe~ miner~ Is at a leSl shall.- this dati bd prodttced lease as {irst lng operations are not vided, this le.a~e N'othiag sever~ tracts, of the 1.~ this lease, aboVe pro atiOn of the WITNESSE?H 1. Lessor, for and in consideration of the sum of ~ ! and pa~d, of,the royalties herein provided, ~d of the afr~men~ of Levee hemm eontained, he.by ~ demises, lea~e~ al~ lets exclusively unto LeSsee thrilled he~in~ter d~crib~d, for the ~,u~e of investigating, expl~g,d~g ~d mi~i**~ :m'. producing, saving, taking, owning, Xr~~, ~toring, ~ndlin8 ~d t~afing oil, g~ ~ ~:~er hyde- carbons ahd mh~erah, whether similar or di~im[l~, ~,r wi~ ~1 ~h~ ~1~ and e~Semen~ ~f~ or convenient for l,ess,.e's operations hereunder on said land a~ on lands ~ ~e ~me field, including but not limit~ to the follow~g rieh~: r,, lay pipe lines; to build roads; and to const~ct ~n~, pump ~d power stations, power ~d eo~icafion lines, Approximate Acres 2:5, Waiter Pe(lo~'~len and l~ura L. Ail of I~)ts 2, ,1, 5 & 8, Section 7, ~N, 1l~, SM. 151.66 All of thc N~, S~tion 23, TSN, Rgw, SM. ~.00 37. Thomas 3. Harrison and Fkorenc~ Harrlson Alt oI the E~SE~, Section 12; a~ ~ts 1 [ 2 of S.ctlon '1:~, TSN, ItgW, NM. .[~5.38 t. .'f,~i~:'~ ~j ;'.,'~,,l~,.~j and l{uby [~radf~rd "' A) * ' ., ' }' . . . ~.... , . . ...~,: ~ =[ .. . . . · : - ~,~ .. -, 2.- J~es A. Bergsrud , oe:tion 2-I, TSN, RIOW, SM. 160 ~ 3. F. Il. Koeler h~este~d NW~, Section 26, TSN, ~0~, ~. 160.00 4. J. Tal[man h~nestead i',~lir,} ,~a(t N~Sc.~,, Sectlon 27, TfN, ~0~, SM. 160~00 5. g ~ '~ t O. l);d~lec ,/.,~ 2~ 3 :A 4, and NE~SW~, Sectlon [9, TSN, ~W, SM. 15(;.46 6. ~t',b,:~ t, F. blt, r'rav v~,{ ~,)n i3~,~, 'FSN, ILgW, SM, 167.39 5t':-%"".':[ 'm() h~:'~";[i of Section 19' ~ts 3 4 '~d 8 of , , ,~.,~, SM. 167 .,~- . 6. Frank ',V. ,Ia~'t.,s ' ' .~t~"t,.~'~ 2' and' g~{, G~ttpn'--29, ,TsN,"~, 8M~., .. .:144;~.-, - -' 9. D. ~,:(;et., 'Jr. ,',.. · ,' ':', ..... 18' ~.,,,~ I a~d ;~ Ot S~ction ~O.;'[i ~{~gJ. of Section ~, 10 Roy F. ~o~e Lot t, ~E~SWI, ~'~S~t ,md ~'t~t, Ot Section 17; ~N, Rgw, SM. ' 158.95 - . 11. Mcz'r~s bi. CouPs,:n ' , , :~':~q,..}, }~:.;]':;i, aw4sE{, of s~tlon 17, TeN, R~, Se, 160.O0 J. 4. how~.i'd Luther, Pioneer Realty (or ~arles Tulip) NE~SE;} of Section 8, 'BSN, RgW; SM. 40.00 [15, W. W. f{ovl!oLds h~,'~eatead ~:is~ o~' soct!.0n..q; w~wJ cf s~t~. ~,_ ~, ~, a~. 16o.oo ,~..tfi, ll:r. r (t !. ,' r-i, Cte:~,'y .. .-_. ., .[-'..,~-.;- · ", T6N, ~W, SM. .. 19. ~. G. ~rttngton h~ste~ (estate) -. · N~ ol S~tfon lO, T~, ~, S~. l&O. O0 21. D~ay Estate (SW~ of 8~tt~ 15, ~, ~, J.)' (1~.~) Cours en . .. , ' ",. ' - i : '~ ' "' ~-, , .. ~y~ .. ·. O~..~ ' '"" 27. l. eot a Patterson Lots 17 and 18 and S~$W~ oX Section 11, TSN, ~,' SW~ of Section 2, T~, R~, SM. 30. Bla/ne Sauuders ~d Marllyn Saunders [~ 1, 2, and 3~ and SW{~ ~t~ ~, X~, ~W, $~, 160.00 31 ' Fred Yc~l I ' ~ of Section 11, TSN, Rgw, SM. ' ~t~O,O0 32. Kennetll ~. LeVan and Beverly A. LeVan StZ~i, ~i~t of S~tion 12, TSN, ~W, SM, 1~.00 33. Duane K. LeVan NEi~{ of Sc~l~ 12, TSN, l~W, SM. 40.00 34. J~es E. Hovts NW~ of Section 13, TSN, Rgw, SM, 1.6(~.00 35. J~nes E. S~pter ~ts 14 a~d 15, s iswt, swis /, o~ section SWiNEt of Section 13, ~N, ~W, SM. 169.47 36. P~ul D. [t~ke ~ta 5 ~d 6 ~d SW}~W{ of Section 13; ~t 2 S~tion 24, TSN, ~W, ~M, 163.~ :st~, ~arl. es J. ~zer ~t~ [, 6, 7 and 11, and ~SE~ with cer'La~n ~cegtions, all in Sec~lon 7, T5N, RSW, SM. 104.38 39. T. E. Whitaker 'l'imt portion Of ~e ~CE~ ~ ~ Ii Of ~t~.o~ 7, S~, mor~ particularly descrlb~ ~s follows: Bogzm~iag at tho 8~ corner of I~t 6 of said Section 7; tt~ence the point of intersection with tile centerllae ~f 8terlinc lligh~ay, the true point of ~clnnin~; thence contlnuln~ S. 0°08' E., 453.60 fee~, more or lt~ss, to tho line of mean hilhwater of 'the Kenai River; thence ~outheasterly, alont said line, 108.00 feet, more or l.~ss; thence N. 79u52'E., 185.20 feet, more or less; thence N. 0°08' W., 432.1 feet, more or less, to said centerilne of Sterllnt Hi,way; thence Northwesterly, aloni said centerllne, 272.5~ feet, more or less, to the t~e point of be~lnnlnK, con'taini, n~ 3.0 acres more or less. ,tO. John F. McFarland SE~.,a~, Section 7, and Lots 1, 7, 8 and 13, S~tion 18, TSN, RSW, SM. Patent No 1129909 140.00 41. Edgar Law 42. J. C, La~'~, ~'C 4, t~lOU 31, ~W., Iai, ~M. 27.94 . ~t "'L" of the ~lmr l~lvlsiou, Soldotna ~.00 43 Fr~cla ~llen . ?. .... 46. L. B. Naif (and other) 47. C~>rge S~NW~ and N~,',;W~ of Section 1,t, TSN, ~W. SM. 160.00 H~[}SWt of S~tton 8; Lots 1 through 16 of Section i1; l~ts I tl~rough 12 of Sectlol{ 12; NW{NW~ of Section 141 W-NWi of Section 17; and ~t 1 of Section 19; all, In TSN, itgw. SM. 308.69 49, B. Connolly W~t ~..S~,~ion.4, TSN, ~W, SM. BO.O0 21-a. E'ugei~la L. Hayes 50. John G. II~dley RE~ Applie~tou for Pemf~ to Drill, limber' Well ~~ bfore the ~11 ~ ~~. V~ ~ly Thorns R. Harshall, Jr. Pecroleun TR~cJh The r~fereuemd appl~tteu for pmnttt to d~tll ts fpp~ subject to the fmltewtnS condittouss m~Tent lomtn8 oSreemmt cover~ tho ~ ~ed t~ red on ~ lease ounsr$1dp map mbteh was- oUbmttted wtth ~ sppl~ ~ penntt .to drill, 2. ~ accurate lease ownership pXot of S~r~t~ 1:5 m~l 22, ~If-~, $*tt., isdic~,tin~ leae~ ouuegsht.p o£ ali m~paz~ ~ragts will be submitted ~ you~ ~rl~ 3. Metl mm~tmm mid emre ehipm will be req~tr~lo See ~ttoa 2907~&1 &, Thts office u~ll be. notified immediately ,u,heu thi{ ~ell is sp~m~led, $, Before may pmoducCton cmn be mold from thLm well, the oil mud 8as Enclosed is your spproved bond form. Ou~ ts for your surety and t~e ocher lo your copy. ~ t~ly ymmors, 'mO'cjh D~v. of Hines ~nd Hiue:a~e Petro~Leum Supervisor DATE : $ IJB JECT: March 21', 1.966 Fi~li-u~ Fee Kuc:~o~ed t~ Check No. 1.02 for ~;50.00 and app~ "App:L~cat~on £or Permit'* the Hoae~eader's Unit Joint Venture for Itomesteaders LIel:L l~o. 1. /cjh ]~t~C. Bm-eh 17, 1966 MF. Iiafh L. Johnston, Jr. 515 D Street, Room 203 Ue have received your ~pplle~Lou for permt~ ~o dzlll r~e ~up~loned well. J~0 note Chat the required $~0.00 u~ll ftltn8 fee rio no~ included vtth ~our ~ppltca~ton. a pho~o~op~ of the Hz~cu~ed Unl~tztn~ oz. Pool ASF~ ~tch binds ~he ~e~ tndLcated on cbs ommrehip map mdm~tted vlr. h your alq~l~a~n~ for permit ~ drill, dated If~ 11, 1966. ky U'uly TRl~c~h Form P--1 ~.. SUBMIT IN TF ~ATE*. ~E OF ALASKA '' . (Other InstruCt' on~ '~' ~ Effective: J~!y 1, 19~ -~everse side) . .:. - ~ - . OIL AND GAS'CONSERVATION C0~ISSlON_ '~ j ' :' ..... ~:52'L~S~: ~E~Z~0~ ~b' S~aZA~ NO, APPLICATION FOR PERMIT TO DRILL, DEEPEN, OR 'PLUG;BACK= la. TYPE OF WORK - - .; ?- :..' -~ - DRILL ~ DEEPEN [] · . PLUG"BACK [[] b. TYPE OF WELL . . - . .. - .:- . - WELL WELL . ZONE ZONE . 9.. NAME OF OPERATOR _ . ..... . Trfnft~ Canadian Drillin~ Co. ' ...... ~. ADDRESS OF OPERATOR ,-. .~_ ,,. . . 515"D"Street Anchorage, A l-aska . -., 4. LOCATION' OF WELl, (Report location clearly and in accordance with any State requirements.*) At surface 660' FSL, 1980' FRS, Sec 15, TSN, Rg~/, SI~ ' '. At proposed prod. zone 14.DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICE* 2.5 ;fi. su~ from Sterling, 1§. DISTANCE FROM PROPOSED* 16. NO. OF ACRES IN LEASE LOCATIONTO NEAREST : ~00 ~ ~ PEOPEET,oR LEASE LINE, FT. ~ -- 36~ 6 (AI~ ~ neareet drl;. unit l~e, If any) ~8. DISTANCE FROM PROPOSED LOCATIONe ~_ ~ o.~~R,O~TmS~,~. O~ ~ n L s ~ e ~ s e 1~ , 800 ~ + (~. IF INDIAN, ALLOTTEE OR TRIBE NAME . -. , ' 4!: 7.' UNIT~ AGREEMENT NAMI~ ' 8. I~ARM 0i~:.LEASE NAME "'9."w~.£~ NO. Sec. 15, TJI~,R91¥, SW 12. B. Oi~OUGH Kena i 17. NO. OP ACRES ASSIGNED TO THIS WELL 20. ROTARY-~OR :CA'BLE TOOLS Rotary 21. ELSVATIONS (Show whether DF, RT, GR. etc.) 275' Or. s- I !3. STATE [ Alaska I' 22~. APPROX~D;TE WORK WI!~L START*~-~'~- ......... · 2-25- 23. i SIZE OF HOLE I SIZE OF CASING 24" [ 20" PROPOSED CASING AND CEMENTING PROGRAM WEIGHT PER FOOT SETTING DEPTH QUANTITY OF CEMEN~ . ., 54# 200' + 500. Soc. + To circulate 46.5// 1800' ~ 200'0 Sx. +' TO .circUlat~ BOP u~ill be set when 13 3/8" casing is set. An intermediate string of casing size 9 5/8" u~illbe run if ii is deemed advisable at approximaie~y ~000' + A production siring of casing size 7" wil'~ ~e run when i~ is deemed aduZsabZe ~t approxi~ateZy 13,800' + IN ABOVE SPACE D~RIBE PROPOSED PROGRAM: If proposal is to deepen or plug back, give data on 'present productive zone and pr°posed new .productive zone. If proposal is to drill or deepen directionally, give pertinent data on subsurface locations and measured and true v~rt!cal de['pths.: GiYe blowout preventer program, ~./7~.~"-'- / ~ / .... . 8IONRD ~ .' (This space for Federal or State office use) PERMIT NO. ~ & -- 7 APPROVED BY TITLE CONDITIONS OF APPROVAL, IFANY: APPROVAL DATE THOMAS E. MARSHALL, Executive Secrefary Alaska Oil & ~as Conservatio~ Committee SEE LETTER DATED MAKCH 21, ,,1,966 *See Inmuction, On Reverse Side 40Zg I~UJO ~' 40, h.~ i~O.Oe 1400a ; 3e.S. ' 39. a~ I~.O' 14O03 _._u .... ~_ ~-- ' .... 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'"~''- '" ~, '~": ~'"~;:-"':','V' '"" ..... .. ..... . :::..: ...... .':.~ ~,:':.'.': .-...:~--;~.~,:~:~ -'.~.~., "' ~' "." :: "'. ?~ ~' ~: ?'"'Z':~I~':~'~;'~'~.': ~'~"~ "':',' '.: '[",'":'-~:. ' '4 .4 ~ I~ -i~° / 1'gsz '9~7 I ZI,85~ 39.59 , i~.~ .]7 i ~ , ~ ~3~ ~-~-J.. 27 ,T ~ -F~~ -- 640.00 ~ 3~.0~ .9.~--J~' '. ~-.~/! [ .I _ / I I~ II I . II I1[ iii i irllll $.ECTION LINE U.S.G.L.O. MON. N I D (brass ca ) SECTION 15 S E.,Cl: I O.N L.I N E.., 8ox ~+~ SOLDOTNA ! ALASKA OcTo.£. 29, 19'65 Z Z I I I i I,, I I I. LOCATED THE: CENTER OF' THE S~ '0F :'-' !- THe. SE t,//+ or $£CTION 15, TO~NSH'mP.5 NORTH, RANGE: 9 WEST, SEWARD MERIDIAN, ,..:'.~' ALASKA ~ A.S SHOWN HEREON. CHARLES g..* PARKER J~EG I STERE:D LAND SURVEYOR SW 114 of S'Eit4 of Section 15 T 5 N, Rgw, Seward Meridion,Alosk¢ EAST 660' _WHITE STAKE SET 'AND MARKED AT CENTER OF THIS 40 ACRE TRACT. line cut) 515 D ST. REET ROOM 203 ANCHORAGE, ALASKa MARCH II, t9~;~; MR, TOM MARSHALL OIL AND GAS CONSERVATION COMMISSION 3OOl PORCUPINE DRIVE ANCHORAGE, ALASKA DEAR SIR: ENCLOSED ARE OUR APPLICATION TO DRILL THE WELL THAT I DISCUSSED WITHYOU ON THE 10TH. AND OUR PLUGGING BOND. Ir THERE IS ANY OTHER INFORMATION THAT YOU NEED PLEASE CALL fOR ME OR Mr. RUSH AT 272 9561. THANK You. P!VISION OF MN!~$ & ANCHORAGE of the County of: as Principal, and Know All Men By These Presents, Canadian Drilling Co., A Delaware Corporation in the Alaska z~ncnorage State of: United States Fidelity and Guaranty Company ]~altimore, Maryland as surety, authorized to do business in this State, are held and firmly bound unto the State in the penal sum as indicated, lawful money of the United States, for which payment, well and truly to be made, we bind ourselves, and each of us, and each of our heirs, executors, administrators or successors, and assigns jointly and severally, firmly by these presents. The condition of this obligation is that whereas the above bounden principal proposes to drill a well or wells for oil, gas, or stratigraphic pur- poses in and upon the following described land situated within the State, to wit: 660 feet FSL 1980 feet FEL Sec 15, T5N, K9W of the Seward Meridian, Two (May be used as blanket bond or for single wen) Miles Southwest of Sterling, Alaska NOW, THEREFORE, if the above bounden principal shah comply with all of the provisions of the laws of this State and the rules, regulations and orders of the Conservation Commission of the State, especially with reference to the proper plugging of said well or wells, and filing with the Oil and Gas Conservation Commission of this State aH notices and records required by said Commission, in the event s.~id~ v~ell q~s do not produce oil or gas in commercial quantities, or cease to produce oH or gas in commercial quantities, then thiS::ob~!g~tion~is ~vc~; ~t. h?/vise~ , the same shall be and remain in full force and effect. ~ % L~. '~',~.~, ~ ~ ~ -($ lO, ooo. oo) ...... Penal sum of Ten Thousand Dollars Witness our hands and seals, this l 1 th day of March day of Witness our hands and seals, this 1 1 th Tri~ G n~ ian D. illing Co. R. L. Rush, Jr~j President Principal March , 1966 Unite/a~tat%~s Fidelit. y an~ Guaranty Company L:t~: ~iartin, -Attofney-~-~n-fact,. s~ (If the principal is a corporation, the bond should be executed by its duly authorized officers, with the seal of the corporation affixed. When principal or surety executes this bond by agent, power of attorney or other evidence of authority must accompany the bond.) ,/ Approved 3/~ Z / Date AS ~ONSERVATION COMMISSION A 11~OMAS Z MA~HAI~ ~' Executive Secretary Alaska 0il & Gas Executive Seeretary ~nse~ation Commtfle~ Alaska Oil and Gas Conservation Commission Bond Form No. P-2 Authorized by Order No. I Effective October 1, 1958 (CERTIFIED COPY) GENEI AL POWER OF ATTO o 71685 N lee,ee*.*l.*.**ee..ee***..e,.*....,**.e,e '* Know all Men by these Preaent,~ ~at UNIT~ STAT~ FID~I~ AND GUA~N~ COMPANY, a cor~ratlon organ~ ~d ex/sting under the laws of the State o~ Maryl~d, and hevins itc principal o~e at the City of BMt~ore, in the State o~ Maryl~d, does hereby constitute ~d ~ppoint L, P, Har~in and ~, B. Har~tn of the City of Anchorage its true end lawful attorneys in and for the State , $~te of Alaska ofAlaska for the followfnf purposes, to wit: 'Fo sign its name as surety to, and to execute, seal and aeknowled~e any and all bonds, and to respectively do and perform any and all acts end thinlo est forth in the resolution of the Board of Directors of the' said UNITED STATF-~ FIDELITY AND GUARAI~TY COMPANY, a certified copy of which is hereto annexed and made a part of thJ~ Power of Attorney: and the said UNITED STATI~-c~ FIDELITY AND GUAI~,I~TY COMPANY. throueh us. its Board of Directors. hereby ratifies and confirms all and whatsoeverX]~l~ either the said L, P, Martin or the said }4, B. Martin may lawfully do in the premises by virtue of thru presents.. ~-.~ ..... ~: ~'-. In Witness Whereof, the ~id UNIT~ BTAT~ FID~I~ AND GU~~Y COMPANY hal ca~ thio ~ument to ~ . . ' mal~ wi~ iu ~r~a~ ~, duly att~ by the oi~a~ of i~ Vi~P~kient and A~iotant ~re~, ~is 17~. ~ ' dayof ~ :__ November , A. D. 19 58 ~ITED STATES FIDELITY ~D GUARANTY c0M~A~. STATE OF MARYLAND BALTIMORE CITY, On thio 17th Wi 1 Ii ford Gragg (Signed) I/ice.Presidenl. day of (Signed) ,)~ - . November , A, D, 19 58, .~bre me. Per~On~l!~:,.eame- , Vic. e-President of the UNITED STATES FIDELITY AND GUAEANTY COMPANY and . Frieda Walter , Assistant Secretary of ~aid Company, with both of whom I am personally a~quainted, who bein~ by me severally duly sworn, said that they resided in the City ef Ba]timore, Maryland~ that they, the saki Williford 6ragg and Frieda Walter were respectively the Viee.Pre~kient and the Assistant Secretary of the said UNITED STATES FIDELIT~ AND GUARANTY COMPANY, the cor- poration described in and wh~h executed t~e fote~oing Power of Attorneyl that they each knew the sea] of said eorporationl that the seal a~xed to said Power of Attorney was such corporate esa], that it was os ai~ed by order of theBoard of DirectOrs of said corporation, and that the~ 0isned their names thereto by like order as Vice-President and A#istant Secreta~, respectively, of the Company. My commission expires the first Monday h May, A. D. 19~ 9 (Se~l) (Signed) ....... ..H..a.. ~r...$...e...t...t....~.........L...$..t...t...,X.,.e. ....................................... Nolor~ Public. STATE OF MARYLAND, BALTIMORE CITY. i, James 1~, C&I'xIe~F , Clerk of the Superior Court of Baltimore City, which Court is a Court of Record, and has a ~1. do hereby e~rtlf7 thatHerr i · t t M. L itt le . E~qulre, ~efore whom the annemed all, daY, ti w~re mede. and who hal thereto 0ubscrl]~ed his name. was at the t~.ne of so doine a Notary Public of the State of Maryland. in and for t~e City of Baltimore, duly commi#ioned a~l oworn and authorized ~y law to admlniater oaths and take acknowledgments, or proof of dalcl0 to he recorded therein. ! ~urt~er certify that I am acquainted with t~e handwritlne of the said Notary. and verily heliove t~e signature to he his ~enuine signature. ~n 7'eo~fnony Whereof; I hereto set my hand and afdc t~e anal of the Superior Court~ of ~a]t~nore City. the a~me ~eine a Court of R~ord, th~ I7W ' day of November (Signed) ........ .q. ................................................ Clerk, of the Superior Court of Baltimore Cfi//. COPY OF RI/SOLUTION That Whet,ess it is necessary for the e/[e~tual transaction o[ busine~ that ~is Comfy ap~t ~en~ ~d attorneys with ~wer and authority to Ict for it ~d in i~ n~e in S~tM oth.r th~ M~y~d. ~d ~ ~= ee~tog~ of ~e Uni~ ~tatel ~d ~ the Pro~n~ of the Dominion of C~ada and ~ the Colony of Newfoundl~d. ~here/ore, be it ~esol~d, that th~ Comfy do. ~nd it hereby d~. au~o~ ~d em~wer i~ President or either of i~ Vice- Presidents in conjunction ~th i~ ~cretary or one of its A~t ~re~ri~, under i~ cor~rate ~. to ap~int ~y ~rson or ~r~ns as attorney or attomey~in-iact, or a~ent or ae~n~ of ~id ~m~y, ~ i~ n~e ~d ~ i~ act. to ex. ute and deliver any ~d all con. tracts suaranteeins the fidelity of ~r~ns hold~s ~sitions of public or private trust. ~t~in~ the ~rio~anc~ o[ contrac~ o~er than insurance ~licies and executin~ or ~ar~t~ins ~nds ~d undertakes, r~uir~ or ~itt~ in ~ actions or pr~edi~a, or by I~w ~lowed. and Alao~ in its name ~d as i~ attorney or atto~ey~in-fact.'ot ~eat or age~ to ~ute ~d ~t~ the con~o~ o~ ~y ~d ~ ~nda. reco~izanc~, obllgatio~, stipulations, undertakings or ~ythin~ in the nature of either of the ~me. which ~e ot may by l~w. municipal or otherwi~, ot by any Statute of the Unh~ Stat~ or o~ any State ot Terrlto~ o~ the Unit~ Staten or o~ the Prov~ o~ the Dominion of Ca,da or o~ the Colony o~ Newfoundi~d. or by the rules, regulations, orders, customs, practice or di~tetlon o~ any board. b~y. organization, o~ce or o~cer, l~al. munici~l o~ othe~. ~ ~low~. t~uir~ or ~rmitt~ to ~ execute, made. taken. ~ven. tender~, acceptS. Rled or recorded for the ~urity or prot~tion o~. by or Eot ~y ~taon or ~raone. cor~ration. ~y. o~ce. interest. municipality or other a~iation or org~atlon whatever, in any and all ~pacltiea what~vet, condition~ for the doing or not doing o~ anything or any conditions which may be provid~ for in any such ~nd. tec~ance, obli~tion, stipulation, or undertakins, or anythin8 in the nature of either of the same. i, ~, ~. ~aehae . an A~iatant ~reta~ oE the UNITED STAT~ FIDELITY AND ~UARANTY COMPANY. do hereby ~rtify that the fo~esoln8 ia a ~uil. true and cor~t copy of the original ~wer o~ attorney 8iven by said Company to L.P. Martin and ~1. B. biartin of Anchorage t Alaska . authorizing and empowering them to sign bonds as therein set forth, which power of attorney has never been revoked and is still in full force and effect. And I do further certi~ that said Power of Attorney was given in pursuance of a resolution adopted at a regular meeting of the Board of Directors of said Company, duly called and held at the office of the Company in the City of Baltimore, on the I lth day of July. 1910. at which meeting a quorum of the Board of Directors was present, and that the foregoing is a true and correct copy of said resolution, and the whole thereof as recorded in the minutes of said meeting. In Testimony Whereof. I have hereunto set my hand and the seal of the UNITED STATE3 FIDELITY AND GUARANTY COMPANY on March 11, 1966. (Date)