STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

333 West 7th Avenue, Suite 100

Anchorage, Alaska 99501

Re: THE PETITION OF DANIEL K. DONKEL ) Conservation Order No. 489
for the compulsory unitization )
of Lease No. ADL 380066 with one or ) April 23, 2003
more other tracts. )

IT APPEARING THAT:

1. On January 31, 2003, the Commission received a petition from Daniel K. Donkel seeking the compulsory unitization of Lease No. ADL 380066 with Lease No. ADL 28249 or the compulsory expansion of "the existing voluntary Kuparuk Unit."

2. On February 11, 2003, the Commission informed Mr. Donkel pursuant to AS 31.05.050(b) and AS 31.05.110(e) that he was required to provide notification of the petition by certified mail to each owner of an interest in the affected tracts.

3. On March 19, 2003, the Commission set a hearing on the petition for May 15, 2003. Notice of the hearing was published in the Anchorage Daily News on March 20, 2003.

4. On March 19, 2003, the Commission informed Mr. Donkel that proof of notification by certified mail to owners of interests in the affected tracts must be received no later than April 17, 2003, and that if the Commission were required to cancel or postpone the hearing due to his failure to timely submit proof of notification, the Commission would consider allocating to him the cost of the newspaper notice, as provided by AS 31.05.085.

5. On April 17 and 18, 2003, the Commission received letters from Mr. Donkel stating his position that he does not have "the duty to notice anyone of [his] Petition" and clearly indicating that he does not intend to comply with the Commission's requirement of notification by certified mail to owners of interests in affected tracts.

FINDINGS:

1. The Commission has not been provided proof that the owners of interests in tracts proposed to be included in a compulsorily created or expanded unit have been notified of Mr. Donkel's petition.

2. Mr. Donkel had an adequate opportunity to comply with the Commission's requirement to notify those owners of his petition.

3. The Commission's cost of publishing notice of hearing was $67.68, and the Commission's cost of publishing notice of cancellation of the hearing is $35.25.

4. Mr. Donkel has not paid any regulatory cost charges under AS 31.05.093.

CONCLUSIONS:

1. An order of compulsory unitization under AS 31.05.110 directly affects the property rights of the owners of interests in tracts that are included within the unit.

2. A Commission order on the merits of Mr. Donkel's petition would not be binding on owners of those interests who did not have a reasonable opportunity to be heard due to lack of notice.

3. It would be wasteful of the Commission's time and resources, and those of the parties, to proceed with a hearing on Mr. Donkel's petition under these circumstances.

4. Considering that Mr. Donkel has not paid any regulatory cost charges and that Mr. Donkel's failure to comply with the Commission's notification requirement has caused the Commission unnecessarily to bear the expense of publishing notice of a hearing that will now be canceled and the expense of publishing notice of cancellation of the hearing, the Commission determines under AS 31.05.085 that it is just under the circumstances to allocate those expenses of publication to Mr. Donkel.

NOW THEREFORE IT IS ORDERED:

1. The petition is dismissed without prejudice.

2. The hearing scheduled for 9:00 a.m. on May 15, 2003, is canceled.

3. Costs in the amount of $102.93 are allocated to, and shall be paid to the Commission by, Mr. Donkel.

DONE at Anchorage, Alaska, this 23rd day of April 2003.

Sarah Palin, Chair
Alaska Oil and Gas Conservation Commission

Daniel T. Seamount, Jr., Commissioner
Alaska Oil and Gas Conservation Commission

Randy Ruedrich, Commissioner
Alaska Oil and Gas Conservation Commission

AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed).

I certify that on April 23, 2003 a copy
of the above was mailed to each
of the following at their addresses of record:

Daniel Donkel
Barbara Fullmer, ConocoPhillips

Jody J. Colombie
Special Staff Assistant

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