The URL can be used to link to this page

Home My WebLink AboutO 075 AINDEX OTHER 075 A 1. May 19, 2022 Application to Amend Other Order No. 075 2. May 19, 2022 Notice of Hearing, affidavit of mailing, e-mail list, bulk mailing list 3. May 27, 2022 Harold Heinze request for more information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¶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essie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2022.09.28 15:04:48 -08'00' Gregory Wilson Digitally signed by Gregory Wilson Date: 2022.09.28 15:35:00 -08'00' 1 Prysunka, Anne E (OGC) From:Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Sent:Thursday, September 29, 2022 8:36 AM To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Other Order 75A (Prudhoe Bay Unit) Attachments:other75A.pdf Docket Number: OTH-22-020 The application of Hilcorp North Slope, LLC to revise Other Order 75 to document current understanding of Prudhoe Bay Unit impacts in the event of propane sales. Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 mailed 9/29/22 3 1 Carlisle, Samantha J (OGC) From:Harold Heinze <heinze.harold@gmail.com> Sent:Friday, May 27, 2022 1:55 PM To:Carlisle, Samantha J (OGC); Mary Ann Pease; Rick Dusenbery; Harold Heinze Subject:Docket Number: OTH-22-006 Dear Sirs RE: Docket Number: OTH‐22‐006 Hilcorp North Slope, LLC’s Application to amend Other Order No. 75, regarding propane sales from the Prudhoe Bay Unit Hilcorp North Slope, LLC (Hilcorp) by letter received May 19, 2022, filed an application with the Alaska Oil and Gas Conservation Commission (AOGCC) to amend the findings of Other Order No. 75 (Other 75), which was issued on August 17, 2012. Other 75 determined that not selling propane from the Prudhoe Bay Unit (PBU) did not constitute waste as was alleged in a complaint filed with the AOGCC. Hilcorp and its partners in the PBU are investigating the possibility of commencing propane sales from the PBU and are seeking to update Other 75 to reflect the differences in field operations, and potential scope of a propane sales project, that have occurred in the decade since Other 75 was issued. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793‐1223 or samantha.carlisle@alaska.gov. I request a timely opportunity to review the additional information filed by Hilcorp. 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 June 15, 2022. After sufficient time to review the full Hilcorp I may request that a hearing be held as planned by AOGCC Harold Heinze 1336 Staubbach Circle Anchorage, AK 99508 (907) 903 ‐ 3623 This may be a new number in your file You don't often get email from heinze.harold@gmail.com. Learn why this is important CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Number: OTH-22-020 Hilcorp North Slope, LLC’s Application to amend Other Order No. 75, regarding propane sales from the Prudhoe Bay Unit Hilcorp North Slope, LLC (Hilcorp) by letter received May 19, 2022, filed an application with the Alaska Oil and Gas Conservation Commission (AOGCC) to amend the findings of Other Order No. 75 (Other 75), which was issued on August 17, 2012. Other 75 determined that not selling propane from the Prudhoe Bay Unit (PBU) did not constitute waste as was alleged in a complaint filed with the AOGCC. Hilcorp and its partners in the PBU are investigating the possibility of commencing propane sales from the PBU and are seeking to update Other 75 to reflect the differences in field operations, and potential scope of a propane sales project, that have occurred in the decade since Other 75 was issued. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for June 30, 2022, at 10:00 a.m. The hearing, which may be changed to full virtual if necessary, will be held in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 Conference ID: 144 907 764#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. 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 June 15, 2022. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after June 16, 2022. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on June 29, 2022, except that, if a hearing is held, comments must be received no later than the conclusion of the June 30, 2022 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than June 22, 2022. Jeremy M. Price Chair, Commissioner Jeremy Price Digitally signed by Jeremy Price Date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amantha Carlisle Digitally signed by Samantha Carlisle Date: 2022.05.26 15:20:27 -08'00' 1 Carlisle, Samantha J (OGC) From:Carlisle, Samantha J (OGC) Sent:Friday, May 27, 2022 10:32 AM To:AOGCC_Public_Notices Subject:Public Hearing Notice, Hilcorp, Amend Other Order 75 Attachments:OTH-22-020 Public Hearing Notice Other 75 amendments.pdf Docket Number: OTH-22-006 Hilcorp North Slope, LLC’s Application to amend Other Order No. 75, regarding propane sales from the Prudhoe Bay Unit Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 From:Carlisle, Samantha J (OGC) To:Roby, David S (OGC); Kyndall Carey Cc:Erickson, Stephanie N; Pierson, Eric N; Griffith, Todd; Gary Selisker; Jill Fisk; Tim Johnson; John Barnes; Jim Shine; Kurtis Gibson Subject:RE: Application to Amend Other Order No. 075 Date:Friday, May 27, 2022 10:36:00 AM Attachments:OTH-22-020 Public Hearing Notice Other 75 amendments.pdf Please see the attached Public Hearing Notice regarding this matter. Thank you, Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Thursday, May 19, 2022 3:03 PM To: Kyndall Carey <Kyndall.Carey@hilcorp.com>; Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Cc: Erickson, Stephanie N <Stephanie.N.Erickson@conocophillips.com>; Pierson, Eric N <eric.n.pierson@conocophillips.com>; Griffith, Todd <todd.griffith@exxonmobil.com>; Gary Selisker <gselisker@chevron.com>; Jill Fisk <jfisk@hilcorp.com>; Tim Johnson <tijohnson@hilcorp.com>; John Barnes <jbarnes@hilcorp.com>; Jim Shine <jshine@hilcorp.com>; Kurtis Gibson <kgibson@hilcorp.com> Subject: RE: Application to Amend Other Order No. 075 Hi Kyndall, Grace Salazar has retired, Samantha Carlisle has replace Grace and is the new Special Assistant for the AOGCC and things like this should be sent to her going forward. I’ve included her on this so you’ll have her email address. Samantha, Please docket this and assign it to me. Thank you, Dave Roby (907)793-1232 From: Kyndall Carey <Kyndall.Carey@hilcorp.com> 1 North Slope, LLC Kyndall Carey Land Representative 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8386 Fax: 907/777-8301 kyndall.carey@hilcorp.com May 19, 2022 Jeremy Price, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE: Application to Amend Other Order No. 075 Dear Chair Price: Hilcorp North Slope, LLC (“Hilcorp North Slope”), as the operator of the Prudhoe Bay Unit (“PBU”), requests that the Alaska Oil and Gas Conservation Commission (“AOGCC”) administratively approve an amendment to Other Order No. 075 dated August 17, 2012 to document the current understanding of Prudhoe Bay Unit (“PBU”) impacts in the event of propane sales. The Prudhoe Bay Unit Working Interest Owners (“PBU Owners”) collectively want to explore the market to sell propane to interested wholesale buyers outside of the PBU. The Alaska market demands high volumes of propane and large amounts are currently being imported from Canada and the lower 48 states. Creating an additional source of local supply benefits all Alaskan consumers. Propane sales from the PBU was publicly contemplated in 2012 and resulted in the AOGCC issuing Other Order No. 075. Some of the findings detailed in Other Order No. 075 are no longer factually accurate based on the impact of field development over the last 10 years. Additionally, the sale of NGLs from the PBU to the Kuparuk River Unit (“KRU”) ceased in September of 2021. Stopping these NGL sales increased the amount of MI available in the PBU which, in turn, increased marginal MI utilization per barrel of EOR oil. For these reasons, the PBU Owners support propane sales from the PBU. Findings: Original Finding per Other Order No. 075 dated August 17, 2012 Updated Finding based on Hilcorp North Slope’s current analysis #2: The PBF handles approximately 170 MMCFPD of propane at the Central Gas Facility (CGF). #2: Approximately 190 MMSCFD of propane enter the CGF on an annual average basis. #4: The produced gas that enters the CGF at PBF leaves in two streams, a gas liquids stream and a residue gas stream. The CGF, within operational and safety constraints, produces as much gas liquids as it is physically capable of doing. The gas liquids separation equipment cannot operate at a process temperature below -50°F. The system is operated as close to that temperature as seasonal, operational, and safety conditions will allow, resulting in an #4: The produced gas that enters the CGF at Prudhoe Bay Field (PBF) leaves in two streams, a gas liquids stream and a residue gas stream. The CGF, within operational and safety constraints, produces as much gas liquids as it is physically capable of doing. The gas liquids separation equipment cannot operate at a process temperature below -50°F. The system is operated as close to that temperature as seasonal, operational, and safety conditions will allow, resulting in an annual average processing temperature of - 38°F and a peak operating temperature of -44°F. In By Samantha Carlisle at 9:29 am, May 20, 2022 May 19, 2022, Amendment to AOGCC Other Order No. 075 annual average processing temperature of -35°F and a peak operating temperature of -42°F. In winter colder ambient temperatures allow a colder processing temperature. winter colder ambient temperatures allow a colder processing temperature. #6: In normal operations the gas liquids stream is further processed into a natural gas liquids stream, which is either sold to the Trans Alaska Pipeline (TAPS) or the Kuparuk River Unit (KRU), and a stream of MI for EOR in the PBF. A small amount of the MI stream is occasionally taken to make high purity propane that is used as a coolant medium in the CGF gas processing systems. The majority of the propane in the gas liquids stream is used in the production of Ml. The majority of the residue gas stream is reinjected into the PBOP gas cap to maintain reservoir pressure. Of the gas which is not reinjected, some is sold to the Northstar Unit to meet its fuel and EOR gas needs; the remainder is burned as fuel gas within the PBF. #6: In normal operations the gas liquids stream is further processed into a natural gas liquids stream, which is sold to the Trans Alaska Pipeline (TAPS) and a stream of MI for Enhanced Oil Recovery (EOR) in the PBF. Sales to the Kuparuk River Unit (KRU) have ceased. A small amount of the MI stream is occasionally taken to make high purity propane that is used as a coolant medium in the CGF gas processing systems. The majority of the propane in the gas liquids stream is used in the production of Ml. The majority of the residue gas stream is reinjected into the Prudhoe Bay Oil Pool (PBOP) gas cap to maintain reservoir pressure. Of the gas which is not reinjected, some is sold to the Northstar Unit and the KRU, some is sold through minor gas sales contracts and the remainder is burned as fuel gas within the PBF. #7: The gas entering the CGF initially contained between 3.3% and 3.5% propane and now contains on average 2.45% propane. #7: The gas entering the CGF initially contained between 3.3% and 3.5% propane and now contains on average 2.35% propane. #9: Selling propane would reduce the amount of MI that could be produced and in turn would reduce the ultimate recovery from the PBOP. #9: Selling propane would reduce the amount of MI that could be produced and in turn would reduce the oil recovery. However, the ultimate total hydrocarbon recovery (including the sold propane volume) from the PBOP may increase depending on the timing and the amount of propane sales. #10: The PBF processing systems have a capacity of compressing 600 MMCFPD of MI but currently only an average of 131 MMCFPD is being created. #10: The PBF processing systems have a capacity of compressing 600 MMCFPD of MI but currently only an average of 310 MMCFPD is being created. #12: Selling 1 barrel per day of propane would reduce the available MI volume by about 4 MCFPD. The actual cumulative effect, due to MI recapture and reinjection, of selling a barrel of propane is a net loss of 8 MCF of MI. The selling of 1 barrel of propane that could have been used to make MI will result in the lost recovery of about 0.7 barrels of oil. On an equivalent barrel basis this equates to 1.08 barrels of oil lost for every BOE of propane sold. #12: 1 bbl/day of propane is equal to 1540 SCF of gas which makes approximately 4 MSCFD of MI when blended to Minimum Miscibility Pressure. The selling of 1 barrel of propane that could have been used to make MI will result in the lost recovery of about 0.4 barrels of oil. On an equivalent barrel basis this equates to 0.61 barrels of oil lost for every BOE of propane sold. #13: Additionally, approximately 85% of the MI that is injected will eventually be recaptured. #13: Some of the injected MI will be reproduced and recycled. Approximately 50% of the fresh MI that is injected will eventually be trapped in the reservoir and another 50% will end up in the residual gas that will be injected into the gas cap. May 19, 2022, Amendment to AOGCC Other Order No. 075 #14: On a BOE equivalency basis a total of 1.93 BOE of fluids would be recovered (1.08 BOE of crude oil and 0.85 BOE of recaptured MI) for every BOE of propane injected. #14: On a BOE equivalency basis, 0.61 BOE of crude oil can be recovered and 0.5 BOE of returned MI will be reproduced and injected into the PBU gas cap for every BOE of propane injected. Based on Hilcorp North Slope’s updated analysis as to the impact of propane sales from the PBU, waste will not occur. As Prudhoe Bay continues to be developed, the overall impact of MI will continue to decline resulting in a lower EOR oil loss per barrel of propane sold. The main changes in the PBU in the past 10 years from 2012 to 2022 include: 1. Marginal MI utilization for every barrel of EOR oil recovery has increased from 12 mcf/bbl to 20 mcf/bbl. 2. The proposed propane sales volume decreased from 2,500 bbl/day to 200 bbl/day initially. Less propane sales volume means the lost MI is less valuable from an EOR point of view. The PBU Owners are continuing to work with interested wholesale buyers to potentially sell volumes of propane up to facility maximum capacity limits. At this time, the facility maximum capacity is approximately 600 bbls/day with the potential to increase to 1000 bbls/day or more with facility modifications. Potential impacts based on the production of these volumes is indicated in the 2022 column below. The following table compares the differences between the 2012 proposal and the 2022 proposal. 2012 2022 Assumed propane sales volume (bbl/day) 2,500 200–1000 Total MI (including recycled MI) loss (mmscf/day) 20 1.6–8.0 GPB marginal MI utilization (mscf/bbl) 12 20 EOR oil loss (stb/day) 1,667 80–400 EOR oil loss per bbl propane sales (stb/stb) 0.7 0.4 Propane energy content (mmBTU/stb) 3.8 3.8 Crude oil energy content (mmBTU/stb) 5.8 5.8 Equivalent oil loss per bbl propane sales (stb/stb) 1.07 0.61 If you need additional information, please contact me at 907-777-8386. Sincerely, Kyndall Carey Land Representative Hilcorp North Slope, LLC cc: ConocoPhillips Alaska, Inc. ExxonMobil Alaska Production Inc. Chevron U.S.A. Inc. Digitally signed by Kyndall Carey (3936) DN: cn=Kyndall Carey (3936), ou=Users Date: 2022.05.19 14:50:57 -08'00' Kyndall Carey (3936) CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. Sent: Thursday, May 19, 2022 2:58 PM To: Roby, David S (OGC) <dave.roby@alaska.gov>; Salazar, Grace (CED) <grace.salazar@alaska.gov> Cc: Erickson, Stephanie N <Stephanie.N.Erickson@conocophillips.com>; Pierson, Eric N <eric.n.pierson@conocophillips.com>; Griffith, Todd <todd.griffith@exxonmobil.com>; Gary Selisker <gselisker@chevron.com>; Jill Fisk <jfisk@hilcorp.com>; Tim Johnson <tijohnson@hilcorp.com>; John Barnes <jbarnes@hilcorp.com>; Jim Shine <jshine@hilcorp.com>; Kurtis Gibson <kgibson@hilcorp.com> Subject: Application to Amend Other Order No. 075 Mr. Roby and Ms. Salazar, Please find attached an application to amend Other Order No. 075 related to PBU Propane. Please confirm via email that you have received this submittal. Thank you in advance. Thank you, Kyndall Carey Land Representative Hilcorp Alaska, LLC Cell: 907-830-1409 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate.