Common use of Introduction and Background Clause in Contracts

Introduction and Background. On August 10, 2001, Xxxxxxxx Alaska, Inc. (Xxxxxxxx), as the designated Cosmopolitan Unit operator, filed the Cosmopolitan Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and the other majority working interest owner, Forest Oil Corporation (Forest). The proposed unit is located on the Kenai Peninsula, offshore, north of Anchor Point. The proposed unit area covers approximately 24,601 acres of which approximately 14,835 acres are State of Alaska lands within seven individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed Cosmopolitan Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two of the leases were offered in State of Alaska Lease Sale 78, held on October 31, 1994. DNR issued oil and gas leases ADL 384403 (Tract 3) and ADL 384404 (Tract 4), effective January 1, 1995, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of these leases expires on December 31, 2001. One of the leases was offered in State of Alaska Lease Sale 78W, held on November 14, 1995. DNR issued oil and gas leases ADL 387102 (Tract 1), effective February 1, 1996, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of this lease expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 (Tract 6), effective February 1, 2000, on State of Alaska lease form number DOG 9609 (rev. 9/99). The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 9), effective May 1, 2001, on State of Alaska lease form number DOG 200004. The seven-year primary lease term of these leases expire on April 30, 2008. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 9, held on July 11, 1962. DNR issued ADL 18790 (Tract 7), effective September 1, 1962, on State of Alaska lease form DL-1 (Rev. April, 1961). The Starichkof State #1Well, a certified well capable of production in paying quantities, is located on ADL 18790. All seven leases retain a 12.5 percent royalty to the State of Alaska. The two MMS leases were offered in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997. The leases were effective August 1, 1997, for a five-year primary lease term. The leases expire July 31, 2002, and reserve a 12.5% royalty to the federal government.

Introduction and Background. On August 10October 5, 20012005, Xxxxxxxx Alaska, Inc. Xxxxxx Range Petroleum Corporation (XxxxxxxxXxxxxx Range), as the designated Cosmopolitan Whiskey Gulch Unit operatorOperator, filed the Cosmopolitan Whiskey Gulch Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and as the other majority sole working interest owner, Forest Oil Corporation owner (ForestWIO). The proposed unit is located on the Kenai PeninsulaNorth Slope, offshore, north approximately 4-5 miles south of Anchor Pointthe Kuparuk River Unit (KRU). The proposed unit area covers approximately 24,601 30,651 acres of which approximately 14,835 acres are State of Alaska lands within seven twelve individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed Cosmopolitan Whiskey Gulch Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two Five of the leases in the proposed unit area were offered in State of Alaska the North Slope Areawide 2000 Oil and Gas Lease Sale 78Sale, held on October 31November 15, 19942000. DNR issued oil and gas leases ADL 384403 389687 (Tract 3) 2), ADL 389692 (Tract 7), ADL 389693 (Tract 6), ADL 389694 (Tract 8), and ADL 384404 389695 (Tract 49), effective January December 1, 19952001, on State of Alaska lease form number DOG 9208200004, which reserves a 12.50 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on December 31November 30, 20012008. One of The remaining seven leases in the leases was proposed unit area were offered in State of Alaska Lease Sale 78W87, held on November 14June 24, 19951998. DNR issued oil and gas leases ADL 387102 389089 (Tract 1), effective February 1, 1996, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of this lease expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 389090 (Tract 65), ADL 389091 (Tract 4), ADL 389092 (Tract 3), ADL 389093 (Tract 10), ADL 389094 (Tract 11) and ADL 389095 (Tract 12), effective February December 1, 20001998, on State of Alaska lease form number DOG 9609 (rev. 9/99). The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 96/97), effective May 1, 2001, on which reserves a 12.50 percent royalty to the State of Alaska lease form number DOG 200004Alaska. The seven-year primary lease term of these leases expire expires on April November 30, 2008. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 9, held on July 11, 1962. DNR issued ADL 18790 (Tract 7), effective September 1, 1962, on State of Alaska lease form DL-1 (Rev. April, 1961). The Starichkof State #1Well, a certified well capable of production in paying quantities, is located on ADL 18790. All seven leases retain a 12.5 percent royalty to the State of Alaska. The two MMS leases were offered in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997. The leases were effective August 1, 1997, for a five-year primary lease term. The leases expire July 31, 2002, and reserve a 12.5% royalty to the federal government2005.

Introduction and Background. On August 10February 15, 2001, BP Exploration (Alaska) Inc. (“BP”) on behalf of itself, Chevron U.S.A. Inc. (“Chevron”), and Xxxxxxxx Alaska Inc. (“PAI”) as the working interest owners in the proposed Slugger Unit applied for approval of the proposed Slugger Unit Agreement (“Agreement”). The proposed Slugger Unit is on the North Slope of Alaska, Inc. (Xxxxxxxx)east of the confluence of the Kavik and Shaviovik Rivers, as and southwest of the designated Cosmopolitan Unit operator, filed Pt. Thomson Unit. The proposed unit area covers approximately 79,508 acres within fourteen individual State of Alaska oil and gas leases. BP submitted the Cosmopolitan Slugger Unit application (Application) with the for approval by t he State of Alaska, Department of Natural Resources (“DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and the other majority working interest owner, Forest Oil Corporation (Forest”). The proposed unit is located on the Kenai Peninsula, offshore, north Appr oval of Anchor Point. The proposed unit area covers approximately 24,601 acres of which approximately 14,835 acres are State of Alaska lands within seven individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed Cosmopolitan Unit t he Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreementcontracts. A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two Eight of the leases in the proposed unit area were offered in State of Alaska Lease Sale 7870A, held on October 31January 29, 19941991. DNR issued oil and gas leases ADL 384403 (Tract 3) 375033, ADL 375034, ADL 375036, ADL 375052, ADL 375053, ADL 375054, ADL 375055, and ADL 384404 (Tract 4), 375059 effective January April 1, 19951991, on State of Alaska lease form number DNR 10-4037 (revised 9/90). The ten-year primary lease term of these eight leases expires on March 31, 2001. Two of the leases in the proposed unit area were offered in State of Alaska Lease Sale 70-AW, held on May 25, 1993. DNR issued ADL 382035 and ADL 382056 effective August 1, 1993, on State of Alaska lease form number DOG 9208. The seven, which provides for a ten-year primary lease term of these leases expires on December 31, 2001term. One Three of the leases was in the proposed unit area were offered in State of Alaska Lease Sale 78W80, held on November 14December 5, 1995. DNR issued oil ADL 385126, ADL 385129, and gas leases ADL 387102 (Tract 1), 385144 effective February 1, 1996, on State of Alaska lease form number DOG 9208. The , which provides for a seven-year primary lease term of this lease expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 (Tract 6), effective February 1, 2000, on State of Alaska lease form number DOG 9609 (rev. 9/99)term. The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 9), effective May 1, 2001, on State of Alaska lease form number DOG 200004. The seven-year primary lease term of these leases expire on April 30, 2008. The remaining final lease in the proposed unit area was offered in State of Alaska Areawide NS 2000 Lease Sale 9Sale, held on July 11November 15, 19622000. DNR This lease, ADL 389656, has yet to be issued, but if issued ADL 18790 (Tract 7), effective September 1, 1962, it will be on State of Alaska lease form DL-1 (Rev. Aprilnumber DOG 9609, 1961). The Starichkof State #1Well, which carries a certified well capable primary term of production in paying quantities, is located on ADL 18790seven-years. All seven fourteen leases retain a 12.5 percent royalty to the State of Alaska. The two MMS Arco (Alaska) Inc., BP, Chevron, and Amerada Xxxx Corporation all had initial ownership in the leases. Amerada Xxxx Corporation sold all of its working interest in the leases were offered between 1994 and 1999, and Arco (Alaska) Inc. changed its name to PAI effective April 27, 2000. Ownership varies between the individual leases, but on average BP, the proposed unit operator owns 42%; Chevron owns 33%; and PAI owns 25% of the working interest in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997the proposed unit area. The Agreement, if approved, will extend the term of the leases were effective August 1, 1997, for a five-year primary lease term. The leases expire July 31, 2002, and reserve a 12.5% royalty as long as they are subject to the federal governmentAgreement. 11 AAC 83.190.

Introduction and Background. On August 1031, 20012005, Xxxxxxxx Pioneer Natural Resources Alaska, Inc. (XxxxxxxxPioneer), as the designated Cosmopolitan Unit NE Storms unit operator, filed the Cosmopolitan NE Storms Unit application (Application) with the State of Alaska, Department of Natural Resources (DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and the other majority working interest ownerowner (WIO), Forest Oil Corporation ConocoPhillips Alaska, Inc. (ForestConocoPhillips). The proposed unit is located on the Kenai PeninsulaNorth Slope, offshore, north approximately 1-2 miles southwest of Anchor Pointthe Prudhoe Bay Unit (PBU). The proposed unit area covers approximately 24,601 16,456 acres of which approximately 14,835 acres are State of Alaska lands within seven individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed Cosmopolitan NE Storms Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two Five of the leases in the proposed unit area were offered in State of Alaska the North Slope Areawide 2003 Oil and Gas Lease Sale 78Sale, held on October 3129, 19942003. DNR issued oil and gas leases ADL 384403 390472 (Tract 3) 1), ADL 390473 (Tract 2), ADL 390492 (Tract 5), ADL 390497 (Tract 6), and ADL 384404 390496 (Tract 47), effective January May 1, 19952004, on State of Alaska lease form number DOG 9208200204 (rev. 10/2003), which reserves a 16.66667 percent royalty to the State of Alaska. The seven-year primary lease term of these leases expires on December 31April 30, 20012011. One of The remaining two leases in the leases was proposed unit area were offered in State of Alaska Lease Sale 78W87, held on November 14June 24, 19951998. DNR issued oil and gas leases ADL 387102 389096 (Tract 14) and ADL 389097 (Tract 3), effective February November 1, 1996, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of this lease expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 (Tract 6), effective February 1, 20001998, on State of Alaska lease form number DOG 9609 (rev. 9/99). The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 96/97), effective May 1, 2001, on which reserves a 12.50 percent royalty to the State of Alaska lease form number DOG 200004Alaska. The seven-year primary lease term of these leases expire expires on April 30, 2008. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 9, held on July 11, 1962. DNR issued ADL 18790 (Tract 7), effective September 1, 1962, on State of Alaska lease form DL-1 (Rev. April, 1961). The Starichkof State #1Well, a certified well capable of production in paying quantities, is located on ADL 18790. All seven leases retain a 12.5 percent royalty to the State of Alaska. The two MMS leases were offered in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997. The leases were effective August 1, 1997, for a five-year primary lease term. The leases expire July October 31, 2002, and reserve a 12.5% royalty to the federal government2005.

Introduction and Background. On August 10June 1, 2001, Xxxxxxxx Alaska, Inc. AVCG LLC (Xxxxxxxx), as the designated Cosmopolitan Unit operator, AVCG) filed the Cosmopolitan Sakonowyak River Unit application (Application) with the Division of Oil and Gas (Division) on behalf of BP Exploration (Alaska) Inc. (BPXA), the designated unit operator. The proposed unit is located in Gwydyr Bay Alaska, at the mouth of the Sakonowyak River, south of the Northstar Unit and north of the Prudhoe Bay Unit. The proposed unit area covers approximately 11,520 acres within five individual State of Alaska oil and gas leases. AVCG submitted the Application for approval by the State of Alaska, Department of Natural Resources (DNR), and the U. S. Department of Interior, Minerals Management Service (MMS), on behalf of itself and the other majority working interest owner, Forest Oil Corporation (Forest). The proposed unit is located on the Kenai Peninsula, offshore, north of Anchor Point. The proposed unit area covers approximately 24,601 acres of which approximately 14,835 acres are State of Alaska lands within seven individual State of Alaska oil and gas leases. The remaining approximately 9,766 acres proposed for the Cosmopolitan Unit are federal Outer-Continental Shelf (OCS) lands within two MMS oil and gas leases. Approval of the proposed Cosmopolitan Unit Agreement (Agreement) would conform and modify the lease contracts to be consistent with the Agreement, and extend the term of leases for as long as they are subject to the Agreement. A summary of the State of Alaska leases proposed for the Cosmopolitan Unit follows. Two Four of the leases in the proposed unit area were offered in State of Alaska Lease Sale 7880, held on October 31, 1994. DNR issued oil and gas leases ADL 384403 (Tract 3) and ADL 384404 (Tract 4), effective January 1, 1995, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of these leases expires on December 31, 2001. One of the leases was offered in State of Alaska Lease Sale 78W, held on November 145, 1995. DNR issued oil and gas leases ADL 387102 (Tract 1)385198, ADL 385199, ADL 385201, and ADL 375202, effective February 1, 1996, on State of Alaska lease form number DOG 9208. The seven-year primary lease term of this lease these leases expires on January 31, 2003. Another lease in the proposed unit area was offered in the Cook Inlet Areawide 1999 Oil and Gas Lease Sale, held on April 21, 1999. DNR issued oil and gas lease ADL 389230 (Tract 6), effective February 1, 2000, on State of Alaska lease form number DOG 9609 (rev. 9/99). The seven-year primary lease term of this lease expires on January 31, 2007. Two of the leases were offered in the Cook Inlet Areawide 2000 Oil and Gas Lease Sale, held on August 16, 2000. DNR issued oil and gas leases ADL 389525 (Tract 8) and ADL 389526 (Tract 9), effective May 1, 2001, on State of Alaska lease form number DOG 200004. The seven-year primary lease term of these leases expire on April 30, 2008. The remaining lease in the proposed unit area was offered in State of Alaska Lease Sale 965, held on July 11June 4, 19621991. DNR issued ADL 18790 (Tract 7)377051, effective September August 1, 19621991, on State of Alaska lease form DL-1 number DNR 10-4037 (Rev. AprilRevised September, 19611990). The Starichkof State #1Well, a certified well capable of production in paying quantities, is located on ADL 18790. All seven leases retain a 12.5 percent royalty to the State of Alaska. The two MMS leases were offered in Cook Inlet OCS Oil and Gas Lease Sale 149, held on June 11, 1997. The leases were effective August 1, 1997, which provides for a fiveten-year primary lease term. The leases expire Without unitization, lease ADL 377051 expires July 31, 20022001. BPXA initially purchased the four Sale 80 leases, and reserve then assigned 25% of the working interest in each to Arco (Alaska), Inc. (AAI). AAI changed its name to Xxxxxxxx (Alaska), Inc. (PAI) effective April 27, 2000. Earlier this year, PAI assigned its 25% working interest in the leases to AVCG. ADL 377051 was originally issued to AAI in Sale 65. Less than a 12.5year al ter, AAI assigned Xxxxxxxx Petroleum Company and Texaco Exploration Alaska each a one-third working interest in the lease. XXX later assigned an 81/3% royalty working interest ownership in the lease to Exxon Corporation, thus retaining a 25% working interest. In December 2000, Texaco Exploration Alaska assigned its working interest to Xxxxxxxx Petroleum Company, which became the property of PAI following the BP-ARCO merger. Earlier this year, Exxon Corporation agreed to assign its working interest in the lease to AVCG, and Xxxxxxxx Petroleum Company has agreed to do the same for its working interest in the proposed unit. Upon approval of these pending assignments, BPXA and AVCG will have 62% and 38% effective working interests in the unit area, respectively. The Agreement, if approved, will extend the term of the leases for as long as they are subject to the federal governmentAgreement. 11 AAC 83.190.