STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West Seventh Avenue, Suite 100 Anchorage, Alaska 99501
Re: THE APPLICATION OF Escopeta Oil Company, LLC for an order granting an exception to the spacing requirements of 20 AAC 25.055(a)(2) to provide for the completion and testing of the North Alexander No. 1 gas exploration well within 1,500 feet ofa property line.
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Conservation Order No. 598 North Alexander No.1 Exploratory Well North Alexander Unit Cook Inlet Basin, Alaska March 27, 2008
IT APPEARING THAT:
1. Escopeta Oil Company, LLC ("Escopeta"), by letter dated November 15, 2007 and received
by the Alaska Oil and Gas Conservation Commission ("Commission") on November 16, 2007, submitted an application for an exception to the well spacing requirements of20 AAC 25.055(a)(2) to provide for the drilling, perforating, completing, testing and production ofthe North Alexander No. 1 gas exploration well within 1,500 feet of a property line ("Application"). 2. On December 7, 2007, pursuant to 20 AAC 25.540, the Commission published in the Anchorage Daily News notice of opportunity for public hearing on January 10, 2008. 3. No protests to the Application or requests for hearing were received. 4. The public hearing was vacated on January 8,2008.
FINDINGS:
1. North Alexander No.1 is proposed as a vertical gas exploratory well with surface and bottom hole locations 2,500 feet from the north line and 625 feet from the west line of Section 22, Tl5N, R08W, Seward Meridian, within the North Alexander Unit. 2. This location for this well was selected because it lies at the top of the prospective structure and is coincident with seismic data. 3. North Alexander No.1 will be located on State of Alaska Lease No. ADL 390586. When the Application was submitted, Escopeta was the owner and operator of lease ADL 390586 and the North Alexander Unit, Cook Inlet Basin, Alaska.
Conservation Order 598 March 27, 2008 Page 2 00
4. Pacific Energy Alaska Operating LLC ("Pacific") is the owner of the adjacent State of Alaska Lease No. ADL 390585. North Alexander No. I will be located 625 feet from the property line that separates lease ADL 390586 and lease ADL 390585. 5. The State of Alaska is the only affected landowner. 6. Escopeta sent notice of the Application by certified mail to all owners, landowners, and operators of all properties within 3,000 feet of the anticipated productive interval of the proposed North Alexander No.1 well. 7. On Februaty 28, 2008, Pacific replaced Escopeta as the operator oflease ADL 390586.
CONCLUSIONS:
1. Exceptions to 20 AAC 20.25.055(a)(2) are necessary to allow for the completion and testing of the North Alexander NO.1 exploratory well. 2. Granting a spacing exception to allow for the completion and testing of the North Alexander No. 1 will not result in waste or jeopardize the correlative rights of adjoining or nearby owners.
NOW, THEREFORE, IT IS ORDERED:
Pursuant to the Commission's authority under AS 31.05.030 and AS 31.05.100, the Commission approves Escopeta's application for an exception to the well spacing provisions of 20 AAC 25.055(a)(2) for the purpose of drilling, perforation, completion and testing of the North Alexander No. 1 well. The well may NOT, however, begin regular production until the requirements of20 AAC 25.055(b) and (c) have been met and Escopeta is in compliance with the terms ofthe unit agreement and applicable Alaska laws and regulations.
ENTERED at Anchorage, Alaska, and dated March 27, 2008.
nt, Jr., Chair as Conservation Commission
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Cathy P. F erster, Commissioner Alaska Oi and Gas Conservation Commission
RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision,
or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for reconsideration of the matter determined by it. If the notice was
mailed, then the period of time shall be 23 days. The application for reconsideration must set out the
respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse
the application for reconsideration in whole or in part within 10 days after it is filed. The failure to act
on it within the 10-day period is a denial of reconsideration. If the Commission 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 Commission mails,
OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration,
UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date
on which the application for reconsideration was filed. If the Cormnission grants an application for reconsideration, this order or decision does not become [mal. Rather, the order or decision on
reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the COnmUssion otherwise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[tlhe questions reviewed on appeal are limited to the questions presented to the commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs 'fitil 5:00 p.m. on the next day that does not fall on a weekend or state holiday.