IN THE UNITED STATES BANUPTCY COURT

In re: )

FOR THE DISTRICT OF DELAWAR

Chapter 1 1

) ) )

PACIFIC ENERGY RESOURCES LTD., et at., 1 )

Debtors. )

Case No. 09-10785(KJC) (Jointly Administered)

Related Docket No. 977, 978

OPPOSITION OF DEBTORS TO MOTION OF DANIEL K. DONKEL TO SHORTEN NOTICE AND TO EXPEDITE HEARNG ON EMERGENCY MOTION FOR A STAY PENDING APPEAL OF THE ORDER GRATING ALTERNATIVE MOTION OF THE DEBTORS FOR AN ORDER AUTHORIZING ABANDONMENT OF CERTAIN INTERESTS IN OIL AND GAS PROPERTIES IN ALASKA (EXCLUDING TRADING BAY) AND REJECTION OF EXECUTORY CONTRACTS RELATING THERETO AND THE ORDER DENYING (I) EMERGENCY MOTION OF DANIEL K. DONKEL FOR RECONSIDERATION TO STAY THE EFFECTIVE DATE FOR THE ABANDONMENT ORDER AND (II) EMERGENCY MOTION FOR IMMEDIATE APPROVAL OF SALE OF DEBTORS' WEST FORELAND LEASE TO DONKEL OIL & GAS, LLC OR, IN THE ALTERNATIVE, TO ENJOIN THE SHUTTING IN OF WEST FORELAND WELL NO.1 PENDING APPROVAL OF THE SALE

In opposition to the motion of

Daniel K. Donkel ("Donkel") for entry of an order to

the Local Rules and Rule 2002(a) of

shorten the notice period under Rule 9006-1(c) of

Federal

Rules of

Bankptcy Procedure (the "Bankruptcy Rules") and to expedite the hearing on the
Daniel K. Donkel for a Stay Pending Appeal, Debtors note the following:

Emergency Motion of

1 The Debtors in these cases, along with the last four digits of each of the Debtors' federal tax identification
number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska

Holdings, LLC (tax LD. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The
mailing address for all of

the Debtors is 111 W. Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

68773-001 \DOCS_DE:

1 53739. 1

1. Donkel fails to establish the existence of any exigencies justifying shortened

notice as required by the Rule 9006-1(e) of the Local Rules of

Bankptcy Practice and

Delaware. While Donkel

Procedure of

the United States Bankptcy Cour for the District of

conc1usorily asserts that, in the absence of an expedited hearing ofDonkel's Emergency Stay

Motion, "Donkel's ownership in the ORRs may be terminated or otherwise affected," Donkel
offers no explanation why the additional time period that would be required to have the

Emergency Stay Motion heard on regular notice rather than shortened notice wil result in any

change in the status ofDonkel's ownership in the ORRIs. Presumably, either (1) the prior entry
ofthis Court's entry of

the Abandonment Order on September 11,2009 to be effective

immediately on entry has already "terminated or otherwise affected" Donkel's ownership in the

ORRs or (2) ifno such termination or other effect has yet taken place, it wil not occur in the
interval before a hearing can occur on regular notice.
2. Debtors will be severely prejudiced if

they are not allowed a full opportunity to

prepare an opposition to Donkel's Stay Motion. In particular, even though Debtors are confident
that the motion is utterly without merit, the motion raises numerous complex legal and factual

issues which will require substantial time to adequately address. For example, is a "stay" ofthe
Abandonment Order even possible at this time, given the irreversible changes that have already
occurred in the positions of

Debtors and the State of Alaska, among others? What would a

"stay" ofthe Abandonment Order entail (i.e., would the State of Alaska have to vacate the
abandoned properties)? What would be the harm to public interest if a stay were ordered and
resulted in the State of Alaska vacating the abandoned properties without Debtors having any
ability to reenter those premises for the purpose of mitigating any potential adverse

68773-001 \DOCS _DE: 1 53739. 1

environmental impacts? What would be the appropriate amount of a bond to be required of .

Donkel as a condition to any stay of the Abandonment Order? This Court, Debtors, the State of Alaska and the public interest should not be compelled

to rush to a decision on the above-noted important issues on an expedited basis in the absence of

Donkel having established that there truly are exigencies which would justify trucating the time
which regular notice would allow. Since Donkel has failed to do so, the instant motion should be
denied and the motion set for hearing at the first omnibus hearing date for this case in November,
2009.

Dated: October 7,2009

PACHULSKI STANG ZIEHL & JONES LLP

. Kharasch (CA Bar No. 109084)

R rt M. Saunders (CA Bar No. 226172)

James E. O'Neill (DE Bar No. 4042) Scotta E. McFarland (DE Bar No. 4184, CA Bar No. 165391) 919 North Market Street, 1 ih Floor P.O. Box 8705 Wilmington, DE 19899-8705
Telephone: 302/652-4100
Facsimile: 310/652-4400

Email: ikharaschCipszjlaw.com

rsaundersCipszj law .com j oneillCipszj law. com smcfarlandCipszj law .com

Counsel for Debtors and Debtors in Possession.

68773-001 \DOCS_DE: 1 53739. 1

IN THE UNITED STATES BANKRUPTCY COURT

In re: )
STATE OF

FOR THE DISTRICT OF DELA WARE

Chapter 1 1

) )

PACIFIC ENERGY RESOURCES LTD., et at., i )

Debtors. )
DELAWARE )
) ss:

Case No. 09-10785 (KJC) (Jointly Administered)

AFFIDAVIT OF SERVICE

COUNTY OF NEW CASTLE )

Kathleen Forte Finlayson, being duly sworn according to law, deposes and says that she
is employed by the law firm of

Pachulski Stang Ziehl & Jones LLP, attorneys for the Debtors in
October, 2009 she caused a copy of

the above-captioned action, and that on the ih of

the

following document(s) to be served upon the parties on the attached service lists in the manner
indicated:
Objection of

the Debtors to Motion of Daniel K. Donkel to Shorten Notice and to

the Order

Expedite Hearing on Emergency Motionfor a Stay Pending Appeal of

Granting Alternative Motion

DEBR L. YOU

NOTAR PU

Notary Public
Commission Exp.:
DOCS_DE: i 53740. 1
i The Debtors in these cases, along with the last four digits of each of

STATE OF DELA Mr Cl exp.k 1', 201

the Debtors' federal tax

identification number, are: Pacific Energy Resources Ltd. (3442); Petrocal Acquisition Corp. (6249); Pacific Energy Alaska Holdings, LLC (tax I.D. # not available); Cameros Acquisition Corp. (5866); Pacific Energy Alaska Operating LLC (7021); San Pedro Bay Pipeline Company (1234); Cameros
Energy, Inc. (9487); and Gotland Oil, Inc. (5463). The mailing address for all of

the Debtors is 111 W.

Ocean Boulevard, Suite 1240, Long Beach, CA 90802.

Pacific Energy Resources Ltd. Special Service List - Daniel Donkel

Case No. 09- 1 0785 Document No. 153569

02 - Hand Delivery 02 - First Class Mail 04 - E-mail

Via Hand Delivery & E-mail: cdavis(gayardflrm.com (counselfor Daniel K. Donkel) Charlene D. Davis, Esquire Jamie L. Edmonson, Esquire GianClaudio Finizio, Esquire
Bayard, P.A.

222 Delaware Avenue, Ste 900 Wilmington, DE 19801

Via Hand Delivery & E-mail: 10izides(ioizides.com (counselfor Donkel Oil & Gas LLC) Christopher D. Loizides, Esquire
Loizides, P.A.

1225 King Street, Ste 800 Wilmington, DE 19801

First Class Mail & E-mail: ddonkel~cfl.rr.com

(Daniel K. Donkel) Mr. Daniel K. Donkel 1906 Kohinoor Place Golden, CO 80401

First Class Mail & E-mail: prusseii~aiien-veiione.com

(counsel for Daniel K. Donkel) Patrick 1. Russell, Esquire Allen & Vellone, P.c.
1600 Stout Street, Ste 1 100

Denver, CO 80202

68773-002\DOCS_DE: i 53569. 1

Pacific Energy Resources Ltd. Core Service List

Case No. 09- 10785
Document No. 146442

05 - Hand Delivery 05 - First Class Mail Delivery

Hand Delivery (United States Attorney) Ellen W. Slights, Esq. United States Attorney's Office District of Delaware
1007 N. Orange Street, Suite 700

Wilmington, DE 19801

Counsel for Debtors) Laura Davis Jones, Esquire James E. O'Neil, Esquire Kathleen P. Makowski, Esquire Pachulski Stang Ziehl & Jones LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE 19899-8705

Hand Delivery (Counsel to Official Committee of

Unsecured Creditors)

David B. Stratton, Esquire James C. Carignan, Esquire Pepper Hamilton LLP

Hercules Plaza, Suite 1500 13 1 3 Market Street

Wilmington, DE 19899

Interoffice Pouch to Los Angeles Counsel for Debtors) Robert M. Saunders, Esquire Ira D. Kharasch, Esquire Scotta E. McFarland, Esquire Pachulski Stang Ziehl & Jones LLP
10100 Santa Monica Blvd., 11th Floor

Hand Delivery (Counsel to DIP Administrative Agent) Don A. Beskrone, Esquire Ashby & Geddes, P.A. 500 Delaware Avenue Wilmington, DE 19801

Los Angeles, CA 90067

First Class Mail Delivery

Hand Delivery (United States Trustee) Joseph McMahon, Esquire the United States Trustee Office of J. Caleb Boggs Federal Building 844 North King Street, Suite 2207
Lockbox 35

Wilmington, DE 19801
Hand Delivery (Copy Service)
Parcels, Inc.

(Counsel to Goldman Sachs, J.Aron & Company; DIP Administrative Agent) Jeffrey Sabin, Esquire Steven Wilamowsky, Esquire Scott K. Seamon, Esquire Bingham McCutchen LLP 399 Park Avenue New York, NY 10022

First Class Mail Delivery

(Counsel to PEA Collateral Agent, et aL.)

Vito i. DiMaio 230 N. Market Street Wilmington, DE 19801

Seth E. Jacobson, Esquire Chris L. Dickerson, Esquire Skadden, Arps, Slate, Meagher & Flom LLP 333 West Wacker Drive, Suite 2100 Chicago, IL 60606

First Class Mail Delivery (Counsel to Official Committee of

Unsecured Creditors)

Francis J. Lawall, Esquire Pepper Hamilton LLP 3000 Two Logan Square Eighteenth & Arch Streets Philadelphia, PAl 9103
First Class Mail Delivery (counsel to Official Committee of
Unsecured Creditors)

Filiberto Agusti, Esquire

Steven Reed, Esquire

Joshua Taylor, Esquire Steptoe & Johnson LLP 1330 Connecticut Avenue NW Washington, DC 20036
First Class Mail Delivery (counsel to Offcial Committee of
Unsecured Creditors)

Robbin Itkin, Esquire Katherine Piper, Esquire Kelly Frazier, Esquire Steptoe & Johnson LLP 2121 Avenue of the Stars, 28th Floor Los Angeles, CA 90067