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Home My WebLink AboutCO 785CONSERVATION ORDER 785 Docket Number: CO -20-010 1. June 11, 2020 Hilcorp Alaska, LLC application for a Spacing Exception BRU 241- 34T 2. July 8, 2020 Notice of hearing, affidavit of publication, email distribution, mailings ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 711 Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to drill, complete, test, and produce the Beluga River Unit 241-34T development gas well within the same governmental section as, and within 3,000 feet of, wells that are, or may be, capable of producing from the same pool. IT APPEARING THAT: Docket Number: CO -20-010 Conservation Order 785 Beluga River Unit Beluga River Unit 241-34T Development Gas Well Kenai Peninsula Borough, Alaska August 12, 2020 By letter received June 11, 2020, Hilcorp Alaska, LLC, (Hilcorp) requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to allow the Beluga River Unit 241-34T (BRU 241-34T) development gas well to be drilled, completed, tested, and produced within the same governmental section as, and within 3,000' of, a well that is, or maybe capable of, producing from the same pool. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for August 11, 2020. On July 8, 2020, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On July 8, 2020, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. Hilcorp sent by certified mail notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the proposed BRU 241-34T development gas well and provided the notice, addresses to which the notices were delivered, and Certified Mail receipts. 4. No comments or request for hearing were received regarding Hilcorp's application. 5. The tentatively scheduled public hearing was vacated. 6. Hilcorp's application provided sufficient information upon which to make an informed decision. FINDINGS: 1. Hilcorp is the operator for the Beluga River Unit (BRU), located within the Kenai Peninsula Borough, Alaska. Landowners for the properties that will be affected by BRU 241-34T are the US Government, the State of Alaska, Cook Inlet Region Inc., and S & E Foster Properties, LLC. Owners within 3,000 feet of BRU 241-34T are Hilcorp, Chugach Electric Association Inc., and Municipal Light & Power. 2. BRU 241-34T will be an onshore, "s -shaped," development gas well drilled directionally to the northeast from an surface location 915 feet from the north line (FNL) and 1,432 feet from the east line (FEL) of Section 34, Township 13 North (TON), Range 10 West (RIOW), Seward Meridian (S.M.). The location of the target of the well will lie about 803 feet FNL CO 785 August 12, 2020 Page 2 of 3 and 1,198 feet FEL of Section 34, T13N, R10W, S.M. The bottom -hole location will also lie about 803 feet FNL and 1,198 feet FEL of Section 34, T13N, R10W, S.M. 3. The surface location for BRU 241-34T, the top of the prospective producing interval, and the bottom -hole location will lie within Federal lease A029657. The productive interval and bottom -hole location will lie more than 1,500 feet from property lines where ownership or landownership changes. 4. BRU 241-34T targets reservoirs within undefined Sterling and Beluga gas pools. 5. Well spacing is governed by the statewide requirements of 20 AAC 25.055. 6. BRU 241-34T will be the fourth development gas well in governmental Section 34, and it will lie within 3,000 feet of five development gas wells. These wells are, or may be, capable of producing from the same pool. 7. The well path and bottom -hole location for BRU 241-34T were chosen—based on reservoir mapping and modeling results to access reserves in discontinuous, lenticular reservoirs that cannot be reached by wells conforming to spacing requirements. 8. If constructed and operated as approved in Permit to Drill No. 220-052, BRU 241-34T will not cause waste or result in an increased risk of fluid movement into freshwater. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow the drilling, completion, testing, and regular production of the BRU 241-34T development gas well in order to maximize resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055 for BRU 241-34T will not result in waste or jeopardize correlative rights of adjoining or nearby owners, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. NOW THEREFORE IT IS ORDERED: The AOGCC grants Hilcorp's June 11, 2020, application for an exception to the well spacing provisions of 20 AAC 25.055 to allow drilling, completion, testing, and regular production of the BRU 241-34T development gas well. Hilcorp may proceed and must comply with all applicable laws, and all other legal requirements. DONE at Anchorage, Alaska and dated August 12, 2020. oi,ftd, ,y by Jeremy M. Price f.""Y l'POce 113Ja -0 W Jeremy M. Price Commissioner, Chair Jessie L. 01ylu0y A9neciby Jessie LChmlelmskl Chmielowski °W008.E MMS"eva Jessie L. Chmielowski Commissioner CO 785 August 12, 2020 Page 3 of 3 As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which can the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MOST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.mon the next day Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 INDEXES Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION Re: Docket Number: CO -20-010 The application of Hilcorp Alaska, LLC for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to perforate, recomplete, and produce the Beluga River Unit 241-34T development gas well within the same governmental section as, and within 3,000' of, a well that is, or may be, capable of producing from the same pool. Hilcorp Alaska, LLC, (Hilcorp) by letter received June 11, 2020, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order for an exception to the spacing requirements of 20 AAC 25.055(a)(4) to allow the Beluga River Unit 241-34T development gas well to be drilled, completed, tested, and produced within the same governmental section as, and within 3,000' of, a well that is, or maybe capable of, producing from the same pool. Beluga River Unit 241-34T Well Surface Location: 915' FNL, 1432' FEL, Sec. 34, TON, R10W, Seward Meridian Target Location: 803' FNL, 1198' FEL, Sec. 34, TON, R10W, Seward Meridian Bottom -hole Location: 803' FNL, 1198' FEL, Sec. 34, TON, R10W, Seward Meridian The AOGCC has tentatively scheduled a public hearing on this subject for August 11, 2020, at 10:00 a.m. at 333 West 7t' Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on July 27, 2020. If a request for a hearing is not timely filed, and the AOGCC deems the information submitted in support of Hilcorp's application sufficient to make a decision, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after July 28, 2020. If a hearing is requested, the covid-19 virus may necessitate that the hearing be held telephonically. Those desiring to participate or be present at the hearing should check with AOGCC the day before the hearing to ascertain if the hearing will be telephonic. If the hearing is telephonic, on the day of the hearing, those desiring to be present or participate should call 1-800-315-6338 and, when instructed to do so, enter the code 14331. Because the hearing will start at 10:00 a.m., the phone lines will be available starting at 9:45 a.m. Depending on call volume, those calling in may need to make repeated attempts before getting through. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 p.m. July 27, 2020, except that if a hearing is held, comments will be accepted until the conclusion of the August 11, 2020 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact theAOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than August 10, 2020. � Jefemy M. Prr�licce' Chair, Commissioner WE Legals & Public Notices Legals & Public Notices 301 301 Amended Notice of Public Hearing _ STATE OF ALASKA - ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Ni mher rn-9n-ntn and produce the Beluga River Unit 24'I -34T development gas we11 'Within the same governmental section as, and within 3,000' of, a well that is, or may be, capable of producing from the same pool. Hilcorp Alaska, LLC, (Hilcorp) by letter received June 1t. 2ron or 2U AAC 25.055(x)(4) to allow the Beluga Rivet Unit 241- 347 developmentgas well to be drilled, completed, tested, and produced within the same governmental section as, and within 3,OOD' of, a well that is, or maybe capable of, producing from the same pool. Beluga River Unit 241-34T Well Surface Location: 915' FNL,1432' FEL, Sec. 34, T13N, R10W, Seward Meridian Target Location: 803 FNL, 1198' FEL, Sec. 34; T13N, R10W, Seward Meridian Bottom -hole Location: 803' FNL, 1198' FEL, Sec. 34, T13N, R10W, Seward Meridian The AOGCC has tentatively scheduled a public hearing. on this subject for August 11, 2020, at 10:00 a.m. at 333 West 7th. Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on July 27, 2020. If a req%est for a hearing is not timely filed, and the ADGCC deems the in submitted in support of Hilcorp's application sufficient to make a decision, the AOGCC may Issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after July 28, 2020. If a hearing is requested, the covid-19 virus may necessitatethat the hearing be held telephonically. Those desiring to.participate or be Dresent at the h.linO GNNIIn rhn,L —i.M ,,.,�� _,. to be present or participate should call 1-800-315=6338 and, wflen instructed to do so, enter the code 14331. Because the hearing will startat 10:00 a.m., the phone lines will be available starting at 9:45 a.m. Depending on call volume, those calling in may need to make repeated attempts before getting through. In addition, written comments regarding this application may be 'submitted to the AGGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 P.M. August 10, 2020, except that if a hearing is held, comments will be accepted until the conclusion of the August 11, 2020 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than August 10, 2020. Jeremy M. Price Chair, Commissioner Published: July 8, 2020 1 To place your legal ad please call 257-4286. STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER SUBMIT INVOICE SHOWING ADVERTISPIG ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION WITH ATTACHED COPY OF ADVERTISMENT. ADVERTISING ORDER NUMBER AO-08-21-001 FROM: AGENCY CONTACT: Jody Colombie/Samantha Carlisle Alaska Oil and Gas Conservation Commission DATE OF A.O. AGENCY PHONE: 333 West 7th Avenue 7/7/2020 (907) 279-1433 Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PHONE NUMBER: ASAP FAX NUMBER: 907)276-7542 TO PUBLISHER: Anchorage Daily News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT: r LEGAL i— DISPLAY it CLASSIFIED OTHER (Specify below) DESCRIPTION PRICE CO-20-010 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT�avoicesH rive a: iiivertri'svio ::ff7t661kN6;;CERi1B1Elj AFFmAVJY.Ot!:::� :PUBucAfilq±vN4TTIwY{aCNtDt'.dPvoF� AbV.6RTisMENT To; AOGCC 333 West 7th Avenue Anchorage, Alaska 99501 FP-R7,-fTTAl1tPages of S REF Type Number Amount Date Comments 1 PVN VCO21795 z Ao AO-08-21-001 3 4 FIN AMOUNT SY Act Template PCM LGR Object FY DIST LIQ I 21 AOGCC 3046 21 2 3 4 5 Purchasing Authority Name: Title: Purchasing Authority's Signature Telephone Number 1. A.O. Itand receiving agency name must appear on all invoices and documents relating to this purchase. 2. The slate is registered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the slate and not for resale. DTSTitIBUTION.:..:.:;:< _...;:.. Alvl.... FtS.... I ....... ,..,.. ... ..... ..,,.... Op.. Publisher (fazed) Dlvlsioq Missal Reeelvidg Form: 02-901 Revised: 7/10/2020 Hilcorp Alaska, LLC June 11, 2020 Jeremy Price, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Beluga River Unit BRU 241-34T Well Commissioner Price: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: (907) 777-8414 Fax: (907) 777-8301 Email: mschoetz@hllcorp.com RECEIVED JUN 11 2020 AOGCC Hilcorp Alaska, LLC (Hilcorp), as Operator of the Beluga River Unit, hereby submits this application for spacing exception to drill the BRU 241-34T Well in an undefined pool lying within the unit boundary of the Beluga River Unit. The productive interval and location for the proposed drill operations are listed below and further depicted on the attached Exhibit A: Surface Location: • Federal Lease A029657 • 915' FNL, 1,432' FEL • Section 34, T13N—R10W, S.M. Top of the Producing Interval: • Federal Lease A029657 803' FNL, 1,198' FEL Section 34, T13N — R10W, S.M. Bottom Hole Location: • Federal Lease A029657 • 803' FNL, 1,198' FEL • Section 34, T13N—R10W, S.M In accordance with 20 AAC 25.055(a)(4)1, not more than one (1) gas well may be drilled to and completed in that [undefined] pool on any governmental section. If the results of the BRU 241-34T Well are successful it will be the fourth well within Section 34, and sixth within the 3,000ft buffer surrounding the well producing from the undefined pool. ' Per 20 AAC 25.055(a)(4) "if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." Hilcorp Alaska, LLC Spacing Exception for BRU 241-34T Well June 11, 2020 Page 2 of 5 The proposed BRU 241-34T Well operations target undrained reserves that cannot be reached by wells conforming to applicable spacing restrictions. The correlative rights of all affected owners, landowners and operators will be protected by approval of this application. As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp's intent to drill the BRU 241-34T Well has been sent by certified mail to those certain owners, landowners, and operators of property within 3,000 feet of the well listed in Exhibit B. A copy of the notice and corresponding certified mailing receipts have been attached to this application. Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit C, is an affidavit executed by a person acquainted with all pertinent facts of this application and verifying that all facts set forth herein are true. It is requested that the Commission schedule a public hearing to review Hilcorp's application for a spacing exception for its proposed operations for the BRU 241-34T Well in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8414 or by email at mschoetzng hilcorp.com Sincerely, I/ Michael W. Schoetz, CPL Senior Landman Hilcorp Alaska, LLC cc: Tom Stokes, Director, Division of Oil & Gas (via email) Kevin Pike, Petroleum Land Manager, Alaska Division of Oil & Gas (via email) Jody Colombie, Special Assistant, AOGCC (via email) Hilcorp Alaska, LLC Spacing Exception for BRU 241-34T Well June 11, 2020 Page 3 of 5 EXHIBIT A APPLICATION FOR SPACING EXCEPTION BELUGA RIVER UNIT BRU 241-34T WELL � ..e ADL021128 A '".ADL021126 ,,,•a .,' cr^. fF°r S013NOtOW Sec. 23 Sea. 24 SO13NOlOW t.',.r". .Sec 22.. --------)v Ru z;_'Ie ADL017658 - ADL021127 -.. 0Ru 7134 S013NOlOW Sea. 28 A029657 woull RnDn i!' BRU 214.2E ADL021129 r - �- Pe Sea 25� *, 5013N0lOW = S013N010W Sec. 27 Sec. 20 1 (BRC341-i4T- RN' NIT 1 r - S013N010v; C'/t c _ 1 A029657 f Sec. 33 5013NO1OW ♦ `r//) 0 500583103000 Sec -33 ♦ S013NOIOW t (Private Subsurface) ♦ Sac. 34 r g ADL017599 i _. SRU22o-34 ` l 5 0j3NOfOW ®T. Sec. 36 h A029656 =pi 211aay 2,435 olzeolaw Sec. 5 0RU 2324 ,� i •. Peva Wall Dau eonarn Mde . TVPE SMUT -IN li `` " GAS Or SUSPENDED %6 5 1 DRL 2�2 94 a A029656 5o12No1ow--.- Legend .. Seas 'a}C,// � • SRU 241-34T SHL � Spacing Exception X 1 3000 k each side of well bore BRU 241J4T - TPH Wdhin Producing Interval / - - t BRU 241-34T BHL — Coastline(NOAA CUSP) � 0 WeO Pad Footprint • ane, W 1 sadaa Nala luralua C30,1 aM Ga Uni16an4ary t inch * 2.0001ee1 Beluga River Unit D ,,oaa :0o0 3000 BRU 241-34T Well o A Spacing Exception M.MSblePlan. Z.A.W 27 „a,�a,•,••,,,,; Abp Dem. &118020 Hilcorp Alaska, LLC Spacing Exception for BRU 241-34T Well June 11, 2020 Page 4 of 5 EXHIBIT B APPLICATINO FOR SPACING EXCEPTION BELUGA RIVER UNIT BRU 241-34T WELL Lease Landowner Owner Operator A029657 Bureau of Land Management Hilcorp Alaska, LLC Hilcorp Alaska, LLC 222 West 7th Avenue, #13 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive, Suite 1400 Section 26 Anchorage, Alaska 99513 Anchorage, Alaska 99503 Anchorage, Alaska 99503 T13N - R10W ATTN: Erika Reed Chugach Electric Association Inc. Section 27 Cook Inlet Region, Inc ATTN: Mark Fouts T13N - R10W P.O. Box 93330 P.O. Box 196300 Anchorage, Alaska 99509 Anchorage, Alaska 99503 Section 34 ATTN: Colleen Miller T13N - RI OW Municipal Light & Power ATTN: Anna Henderson Section 35 1200 East 1st Avenue T13N - RIOW Anchorage, Alaska 99501 A029656 Bureau of Land Management Hilcorp Alaska, LLC Hilcorp Alaska, LLC Section 34 Cook Inlet Region, Inc Chugach Electric Association Inc. T13N - R10W Municipal Light & Power ADL 021129 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas Section 27 550 W. 7th Avenue, Suite 1100 Chugach Electric Association Inc. T13N - RIOW Anchorage, AK 99501-3560 Attn: Tom Stokes, Director Municipal Light & Power ADL 017599 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas Section 35 Chugach Electric Association Inc. T13N-RIOW Municipal Light & Power 500583103000 S & E Foster Properties, LLC Hilcorp Alaska, LLC Hilcorp Alaska, LLC 1125 N. Fairway Drive Section 35: Eloy, AZ 85131 Chugach Electric Association Inc. U.S. Survey #3596 T13N - R10W I Municipal Light & Power Hilcorp Alaska, LLC Spacing Exception for BRU 241-34T Well June 11, 2020 Page 5 of 5 EXHIBIT C APPLICATION FOR SPACING EXCEPTION BELUGA RIVER UNIT BRU 241-34T WELL VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA A029657 Beluga River Unit BRU 241-34T Well I, Michael W. Schoetz, Senior Landman, Hilcorp Alaska, LLC do hereby verify the following: I am acquainted with the application submitted for the drilling of the BRU 241- 34T Well in the Beluga River Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska, this l IU' day of June 2020. Gtr Michael W. Schoetz, CPL Senior Landman STATE OF ALASKA ) THIRD JUDICIAL DISTRICT) SUBSCRIBED TO AND SWORN before me this 11th day of June 2020 " C7- STATE OF ALASKA -2 NOTARY Pt113UC NOTARY PUBLIC IN AND FOR THE ANcia G. Showalter My Commission Expires Oct. 4, 2021 STATE OF ALASKA My commission Expires: Oel.q. �2 dV Ifl Hilcorp Alaska, LLC June 11, 2020 S & E Foster Properties, LLC 1125 N. Fairway Drive Eloy, AZ 85131 RE: Notice of Application for Spacing Exception Beluga River Unit BRU 241-34T Well To Whom It May Concern: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: (907) 777-8414 Fax: (907) 777-8301 Email: mschoetz@hilcorp.com COPY Hilcorp Alaska, LLC (Hilcorp), as Operator of the Beluga River Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) an application for spacing exception to drill the BRU 241-34T Well in an undefined pool lying within the Beluga River Unit boundary. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 3,000 feet of a well drilling for gas for which an exception is sought must receive notice of such exception application. As a landowner of certain property located within 3,000 feet of Hilcorp's proposed BRU 241-34T Well depicted on Exhibit A, please allow for this letter to serve as notice of Hilcorp's intent to submit an application for a spacing exception for its proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. In accordance with 20 AAC 25.055(a)(4)1, not more than one (1) gas well may be drilled to and completed in that [undefined] pool on any governmental section. If the results of the BRU 241-34T Well are successful it will be the fourth well within Section 34, and sixth well within the 3,000ft buffer surrounding the well producing from the undefined pool. The proposed operations target undrained reserves that cannot be reached by wells conforming to applicable spacing restrictions. The correlative rights of all affected owners, landowners, and operators will be protected by approval of this application I Per 20 AAC 25.055(a)(4) "if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool." Hilcotp Alaska, LLC Spacing Exception for BRU 241-34T Well June 11, 2020 Page 3 of 3 COPY EXHIBIT A APPLICATION FOR SPACING EXCEPTION BELUGA RIVER UNIT BRU 241-34T WELL -------4moi t Ir y s S013NOIOW 1, Sec. 23 SO13NOIOW '•..` a0 Sec. 24 , au a,•.. Zb ' ADLO17658 rr , ADLO21127 , i 0Rb {3_ .0 l 13N010W A Sac. 29 O29657 uI BRu n.. 25 }M j 6013N0l O W SO13N010W { Y / 5013NDIOW Sec. S� Seo. 27 Sec. 20 v Sec, 5 BRU 232 e + , + BRu 2bi 02965( S012NOIDW Sec. 4 ` r� 1, �Y S013N60W 3r. Sec. 35 0583103000 (Private Subsurface) ADLO17599 _ 36 Pave"Dab Bo Ible. TYPE -t- SHUT-IN OAS 0 SUSPENDED Legend • '"'U2' RU 241-34T SHL Specing Exceplim BRU 241-34T 1PH 1 , a 3DOO ft each MOMdu +v ckIn wele"al bore 5 t BRU 241-34T BHL — CmMline (NOM CUSP) Wei Pail faoqp1M • o1Na. wan saelavc NMa 1.aomn O On a,H Gu Unit Brnnneey , 1 mh - 2.000 be+ Beluga River Unit 0 1.000 2.008 3.008 BRU 241 -UT Well o A Spacing Exception Nuke sue°P" Zana 4. MxD27 Nap Dela. 6,1112020 Sec. 34 y BRU :24 � AO29656 Sec, 5 BRU 232 e + , + BRu 2bi 02965( S012NOIDW Sec. 4 ` r� 1, �Y S013N60W 3r. Sec. 35 0583103000 (Private Subsurface) ADLO17599 _ 36 Pave"Dab Bo Ible. TYPE -t- SHUT-IN OAS 0 SUSPENDED Legend • '"'U2' RU 241-34T SHL Specing Exceplim BRU 241-34T 1PH 1 , a 3DOO ft each MOMdu +v ckIn wele"al bore 5 t BRU 241-34T BHL — CmMline (NOM CUSP) Wei Pail faoqp1M • o1Na. wan saelavc NMa 1.aomn O On a,H Gu Unit Brnnneey , 1 mh - 2.000 be+ Beluga River Unit 0 1.000 2.008 3.008 BRU 241 -UT Well o A Spacing Exception Nuke sue°P" Zana 4. MxD27 Nap Dela. 6,1112020 Ln(Domestic S M ea ru -D Ppslege _D Cartaled Fee �' D Postmark co Return Receipt Fee Here (Endorsement Required) Restricted Delivery Fee C:l (Endorsement Required) In ri Total Postage & Fees $ 0 s Sent o Department of Natural Resources r -R - ------ Division of Oil & Gas .............................. C3 $ ree ` or Poe 550 W. 7th Avenue, Suite 1100 c4 -§j Anchorage, AK 99501-3560 ....... -............ —......... Attn: Tom Stokes, Director :rr rr. _ (Domestic Mail C For tlellvery inform. N m Postage $ a m -- E3 Certified Fee lO ED Return Receipt Fee Posture l C3 (Endorsement Required) Here 0 Rivancted Dellvery Fee - (Endorsement Required) In ri Total Postage & Fees $ 0 err Chugach Electric Association Inc. a sireai ATTN: Mark Fouts -- -PO P.O. Box 196300 - - city i Anchorage, Alaska 99503 Postal CERTIFIED MAIL, RECEIPT N (Domestic i7�� ea 5 d g O N •u -L! Postage E N M Postage Certipetl Fee O GertlHed (Otto O Return Raceip C3 O Return Recelpt Fee (Endorsement Required) Postmark O (Erxlorsemenl Requ O Hare C3 Restricted Delivery Reslrkted Dellvery Fee (Endorsement Requ O (Endorsement Required) uT ul r! Total Postage & F ra Total Postage & Fees $ O = an` ° Bureau of Land Management .:I- o s"a 222 West 7th Avenue, #13 ------------------------ - Sii;iCN ATTN: Anna Henderson °`POB Anchorage, Alaska 99513 f` oiPst 1200 East 1slAvenue city. sw ATTN: Erika Reed ...--------------------- Ln(Domestic S M ea ru -D Ppslege _D Cartaled Fee �' D Postmark co Return Receipt Fee Here (Endorsement Required) Restricted Delivery Fee C:l (Endorsement Required) In ri Total Postage & Fees $ 0 s Sent o Department of Natural Resources r -R - ------ Division of Oil & Gas .............................. C3 $ ree ` or Poe 550 W. 7th Avenue, Suite 1100 c4 -§j Anchorage, AK 99501-3560 ....... -............ —......... Attn: Tom Stokes, Director :rr rr. _ (Domestic Mail C For tlellvery inform. N m Postage $ a m -- E3 Certified Fee lO ED Return Receipt Fee Posture l C3 (Endorsement Required) Here 0 Rivancted Dellvery Fee - (Endorsement Required) In ri Total Postage & Fees $ 0 err Chugach Electric Association Inc. a sireai ATTN: Mark Fouts -- -PO P.O. Box 196300 - - city i Anchorage, Alaska 99503 (Domestic Mail Only; No Insurance Coverag For delivery information visit our website at www. S lu m Postage E n a t [i O certified Fee 1:3 Return Recelpt Fee P I I O (Endorsement Required) r O Restricted Delivery Fee O (Endorsement Required) In r-3 Total Postage & Fees $ 0 z °` S & E Foster Properties, LLC p51n ........_- N a,F 1125 N. Fairway Drive Eloy, AZ 85131 ...... PS Form 3800. August t. Postal fri'i CERTIFIED MAIL�� RECEIPT S(DomesticOnly; m O N Postage E �^ r 1ni 1n 7 nj Jl- Y UK -1 •(� O certified Fee r ^ (, n Return Recelpt Fee Postmark 0 (Endo®ement Required) Here O Restricted Delivery Fee O (Endomemenl Required) u1 r-1 Total Postage & Fees $ C3 s7-A Cook Inlet Region, Inc '�P.O. Box 93330Anchorage, Alaska 99509 ATTN: Colleen Miller . .. ] (Domestic mDIY i7�� ea 5 d g O N •u -L! Postage E /) 'Sr- Y t Certipetl Fee C3 O Return Recelpt Fee (Endorsement Required) Here O Reslrkted Dellvery Fee O (Endorsement Required) ul ra Total Postage & Fees $ .:I- Sentra Municipal Light & Power m Sii;iCN ATTN: Anna Henderson ---------------- " f` oiPst 1200 East 1slAvenue Anchorage, Alaska 99501 (Domestic Mail Only; No Insurance Coverag For delivery information visit our website at www. S lu m Postage E n a t [i O certified Fee 1:3 Return Recelpt Fee P I I O (Endorsement Required) r O Restricted Delivery Fee O (Endorsement Required) In r-3 Total Postage & Fees $ 0 z °` S & E Foster Properties, LLC p51n ........_- N a,F 1125 N. Fairway Drive Eloy, AZ 85131 ...... PS Form 3800. August t. Postal fri'i CERTIFIED MAIL�� RECEIPT S(DomesticOnly; m O N Postage E �^ r 1ni 1n 7 nj Jl- Y UK -1 •(� O certified Fee r ^ (, n Return Recelpt Fee Postmark 0 (Endo®ement Required) Here O Restricted Delivery Fee O (Endomemenl Required) u1 r-1 Total Postage & Fees $ C3 s7-A Cook Inlet Region, Inc '�P.O. Box 93330Anchorage, Alaska 99509 ATTN: Colleen Miller . .. ]