The URL can be used to link to this page

Home My WebLink About200-042 Permit to Drill 2000420 )Ó.Jii¡- DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Well Name/No. HOUSTON 22 API No. 50-009-20018-00-00 MD 513 TVD 513 REQUIRED INFORMATION DATA INFORMATION Types Electric or Other Logs Run: Well Log Information: Log/ Electr Data Digital Dataset Type Med/Frmt Number Name Well Cores/Samples Information: Name ADDITIONAL INFORMATION Well Cored? ~W Chips Received? -'I'ï1'í Analysis Received? ~ Comments: !i.. Lr¡- Compliance Reviewed By: Operator GRIINC Completion Date 8/26/2004 Completion Status P&A Current Status P&A UIC N Mud Log No Samples No Directional Survey No (data taken from Logs Portion of Master Well Data Maint -- Log Log Run Scale Media No Interval OH / Start Stop CH Received Comments Interval Start Stop Sample Set Number Comments Sent Received Daily History Received? ð/N ~ Formation Tops . ~ !J-o Date: ~q S'~ ~ C'a It - -,.. ---.... -- --.... \¡,~ - - '" E & P SERVICES, INC. September 17, 2004 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. ih Avenue, Suite 100 Anchorage, Alaska 99501-3539 J,~i~~ Re: Houston No.'s 1,2,3,4, and 22 Completion Reports State of Alaska, Department of Administration, AOGCC Contract # 0501 Dear Mr. Norman: Please find attached completed Forms 10-407 for the Houston No.'s 1,2,3,4 and 22 well P&A's that Fairweather E&P Services, Inc. completed during the past month on behalf of the AOGCe. The completion reports have been prepared from field data recorded during the work and include photo documentation of the P&A operations. A summary of operations for the closure ofthe Houston No. 1 reserve pit is also included. The entire project went very well and was completed without incident. FurthemlOre, we believe that the local landowners at each site are very pleased with the work that has been done. Fairweather greatly appreciates the opportunity to perform this project for the Commission. If you have any questions or require any additional information, please contact the undersigned at 907-258-3446. Sincerely, FAIRWEATHER E&P SERVICES, INe. ~~ RECEIVED SEP 1 7 2004 Jesse Mohrbacher President Alaska Oil & Gas Cons. Commission Anchorage Attachments: Forms 10-407, Well Completion Reports cc: Bill Penrose, Fairweather , OR\G\NA~ 2000 East 88th Avenue· Anchorage, Alaska 99507 . (907) 258-3446 . FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 . Houston, Texas 77060 . (281) 445-5711 . FAX (281) 445-3388 I STATE OF ALASKA . ALASKA 0 L AND GAS CONSERVATION COMMISS I WELL COMPLETION OR RECOMPLETION REPORT AND LOG Oil U Gas 0 Plugged 0 1a. Well Status: Abandoned 0 20AAC 25,105 GINJD WINJD WDSPLD 2. Operator Name: I Growth Resources International/AOGCC 3. Address: I 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 4a. Location of Well (Governmental Section): Surface: 3460' FSL, 730 FWL, See 9, T18N, R 3W, S Meridian Top of Productive Horizon: Same No. of Completions I Total Depth: 4b. Location of Well (State Base Plane Coordinates): Surface: x- y- TPI: x- y- Total Depth: x- y- 18. Directional Survey: Yes 0 No Zone- Zone- Zone- o 21. Logs Run: None Suspended 0 20AAC 25,110 WAGU 1b. Well Class: Development 0 Exploratory 0 Service 0 Stratigraphic Test 0 12. Permit to Drill Number: . 200-042 13. API Number: 50-009-20018-00 14. Well Name and Number: Houston No. 22 15. Field/Pool(s): Other 5. Date Comp., Susp., or Aband.: 26-Aug-2004 6. Date Spudded: June 22, 2000 7. Date TD Reached: June 22, 2000 8. KB Elevation (ft): Ground Level 9. Plug Back Depth(MD+TVD): 513' 10. Total Depth (MD + TVD): 513 11. Depth Where SSSV Set: N/A 19. Water Depth, if Offshore: N/A feet MSL 22. CASING WT. PER GRADE FT. 10-3/4" 55.5 C-75 85/8" 24 J-55 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE TOP BOTTOM TOP BOTTOM Surface 76 Surface 76 12-1/4" Surface 513 Surface 513 10" 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): None. 26. Date First Production: N/A Date of Test: Hours Tested: 24. SIZE N/A 16. Property Designation: 17. Land Use Permit: 20. Thickness of Permafrost: N/A CEMENTING RECORD AMOUNT PULLED None, driven Not to surface Csg cut 4' below grd TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Surface to approx 20' 8 sax Type I in 8-5/8"x10" annulus Surface to 265' 68 sax Type I in 8-5/8" casing PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): N/A Oil-Bbl: Gas-MCF: Water-Bbl: Production for Test Period Calculated 24-Hour Rate -+ Flow Tubing Press. Casing Press: -+ Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: IGaS-Oil Ratio: Oil Gravity - API (corr): 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None. RECEIVED RBDMS Bfl SEP i2 ~~ SEP 1 7 2004 Form 10-407 Revised 12/2003 ! (" I. CONTINUED ON REVERSE "- Alaska Oil & Gas Cans. Commissíon Anchorage G (~ · NAME None available GEOLOGIC MARKERSe MD TVD 29. a:>RMATION TESTS Include and briefly su~e test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". 28. RECEIVED SEP 1 72004 30. List of Attachments: Well bore schematic, P&A photos, operations summary. 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Alaska Oíl & Gas Cons. CommÎssion Anchorage Contact: Jesse Mohrbacher Printed Name: Jesse Mohrbacher Title: President, Fairweather E & P Services, Inc. Signature: ~ ~d.--- Phone: (907) 258-3446 Date: 17J'~ "Df INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 1 0-407 well completion report and 1 0-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 e e Houston No. 22 Plug and Abandonment Daily Operations Summary Tuesday,August24,2004 7:00 pm - Nunleys and Sampert to Houston #22 with 77 sax cement, l' pipe, %" pipe. Checked depth of obstruction in well. Found at 270 ft rather than 220 ft. Ran 22 jts of l' pipe in hole, prepared for cementing unit tomorrow. Shut down at 10 pm. Wednesday, August, 25, 2004: RU on Houston #22 to run additional 3 jts of 1" pipe - total of 25 jts. Tagged bottom at depth of 265'. RU R&K Industrial, mixed 76 sax cement. 12:55 pm: Commenced pumping 15 ppg cement. Cement returns at 1 :25 pm. Removed cement header, stabbed one length of %" pipe in 8-5/8 x 10" annulus. Could get no deeper. Pumped through %" pipe until cement returns to surface, approximately 8 sax. RD for move to Houston #4. Monday, August 30, 2004: Cuttoff well casings at 4' below ground level and welded 18" diameter ~" thick marker plate on same. Took photos of cutoff well and welded plate on casings as John Spaulding was unavailable for final site closure inspection. Backfilled excavation to level with grade and smoothed location. All depths BGL GL --- Casing Strings capped w/1S" diameter X 1/4" steel plate @ 4' BGL 10" Casing Driven @ 76' Unknown Obstruction @ 26S' 8 S/8" Casing @ 513' , Houston # 22 GRllnc. C/O AOGCC Houston # 22 Well Schematic Permit#200-242 API # 50-009-20018-00 Final Abandonment Status 3/4" pipe from surface to 10' 15 PPG +/- cement in 10" X 8 5/8" annulus@surface 15 PPG +/- Type I cement in 8 5/8" casing and 1" <--- Toe in 10" X 8 5/8" annulus unknown Fairweather E & P Services, Inc. 1" pipe from surface to 265' No Perforations in Well Water Cement Rev, 01 IN 09/09/04 Drawing Notto Scale Houston #22 Photos Cap welded Onwell prior to backfill. e e TO: Jim Regg, ~fd P.J Supervisor . lÎ ~#- State of Alaskê <20g.....Q"~ Alaska Oil and Gas Conservation Commission tL \ vlòtr- DATE: August 30,2004 MEMORANDUM FROM: John Spaulding, Petroleum Inspector SUBJECT: Houston Well Abandonments Houston, Alaska Wells 1,2, 3, 4 and22'¡ The following is a summary of the portions of the. well pl~ and surface. abandonment operations that 1 witnessed. Houston wells 1,4 and 22 were cemented in the same fashion. 1. %" black iron pipe was run down the tubing to the top of cement. 2. Cement was displaced down the %" pipe until returns were received at surface, the %" pipe was left in the welJ fulJ of cement. 3. Wells 2 and 3 had open perforations; cement was squeezed through the perforations into the formation. A set up period was allowed for the squeezed cement and then the well bore was filled to surface with cement. 4. After all surface equipment was removed the wells were excavated to a minimum of 4 feet below originaJ grade - with the exception of wen number 1. At the landowners request this well was excavated to a depth of eight feet. Upon cutting the casings off on well 1 it was noted that there was no cement to surface on the inner annulus (IA). The contractor chose to attempt to cement the IA to surface. A cementing string of %" pipe was run until a restriction was met, they commenced pumping cement and took good returns to surface. All wells had good cement returns to surface as noted in the attached photos. All locations were cleaned, graded and reseeded. All junk equipment was removed and the areas now look quite well. The reserve pit fluids were removed and the pit area filled back in with clean gravel and reseeded. SUMMARY: I witnessed the plug and abandoning of the well bores on GRl's Houston wells 1, 2, 3, and 4. The locations for wells 1, 2, 3, 4 and 22 were viewed as well. I recommend final abandonment and location clearances be granted. Attachment (Photos of P&A activities witnessed) NON-CONFIDENTIAL Houston #1 P&A Inspection Photos from AOGCC Inspector John Spaulding August 2004 Houston#1 csg stub; no annulus cement Houston #1 was abandoned similar to others with a marker plate welded on casing stub after cemented to surface; no photos available showing marker plate or cement to surface in all annuli Location cleared 2 Houston #2 P&A Inspection Photos from AOGCC Inspector John Spaulding August 2004 Houston #2 csg stub and wellhead; cut below side outlet on casing; cement to surface I Houston #2 marker plate I Location cleared 3 Houston #3 P&A Inspection Photos from AOGCC Inspector John Spaulding August 2004 Houston #3 csg stub; cement to surface I Houston #3 marker plate I location cleared 4 Houston #4 P&A Inspection Photos from AOGCC Inspector John Spaulding August 2004 Houston #4 csg stub; cement to surface Houston #4 marker plate location cleared I 5 Reserve Pit - Houston Field Abandonment Inspection Photos from AOGCC Inspector John Spaulding August 2004 Reserve Pit pre- abandonment Reserve Pit pre- abandonment Reserve Pit after abandonment and site grading 6 I .¡ . . t Surface Equipment and Operations - Houston Field Abandonment Photos from AOGCC Inspector John Spaulding August 2004 P&A equipment staging area (near reserve pit) Cementing skid hooked up to Houston #1; vac truck (right side for cement returns) Houston #3 well house and recovered well cellar 7 .. STATE OF ALASKA .. ALA~ OIL AND GAS CONSERVATION COM~vION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Abandon lj Alter casing 0 Change approved program 0 2. Operator Name: Growth Resources International I AOGCC 3. Address: 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 7. KB Elevation (ft): 1. Type of Request: 8. Property Designation: 11. Total Depth MD (ft): 513 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): None Packers and SSSV Type: Ground Level Total Depth TVD (ft): 513 Length 76 513 Wú1\- 7/ ¿ '112-004 Suspend U Repair well 0 Pull Tubing 0 Perforate U Waiver U Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 /5.' Permit to Drill Number: ~Jt Exploratory 0 ~ 'If)O "'04-2- Service 0 6. API Number: / 50-009-20018-00 Annular Dispos. U Other 0 Development Stratigraphic o o 9. Well Name and Number: Houston No. 22 ./ 10. Field/Pool(s): PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): Effective Depth TVD (ft): 220 220 Size MD TVD Plugs (measured): IJUnk (measured): Obstruction 220 ft Collapse none Burst 10" NA NA NA NA 8-5/8" 76 513 76 513 I Perforation Depth TVD (ft): Tubing Size: rUbing Grade: Packers and SSSV MD (ft): Tubing MD (ft): 12. Attachments: Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 14. Estimated Date for Commencing Operations: 16. Verbal Approval: 15-Aug-04 Date: 13. Well Class after pr~osed work: Exploratory 0 I Development 0 Service 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jesse Mohrbacher Printed Name Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. Signature ~~~ Phone 28-Jul-04 907-258-3446 Date COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: 3P t.f.. ~ 9y L..---"' Plug Integrity ci Other: BOP Test 0 Mechanical Integrity Test o ~ Location Clearance .~8f·b K)ß\~2- o DJ C I I'd ^ L BY ORDER OF t~ ~ib~Mt"\ THE COMMISSION ~æ' s?i:L1~ INSTRUCTIONS ON REVERSE e e Houston No. 22 Plug and Abandonment Procedure Well Status Houston No. 22 is suspended with 10 inch conductor driven to 76 feet and 8-5/8 inch surface ./ casing set at 513 feet. The well was not perforated or completed. An unknown obstruction was discovered at approximately 220 feet when an attempt was made to run cased hole wireline logs. There is no wellhead on the well, only a steel plate partially welded over the top of the 8-5/8" casmg. Fairweather's inspection of the well on June 2, 2004 indicated that the 10 x 8-5/8 inch annulus is dry at the surface with some debris in the annulus at depths below visible range due to the 8-5/8 inch casing being wedged off center from the 10 inch conductor. Water is present in the 8-5/8 / inch casing near the surface and the steel plate cap is not sealed. Attachment 1 shows the present status ofthe Houston No. 22 well. Operations Procedure Fairweather's proposed P&A procedure for the Houston No. 22 well is presented below and depicted in Attachment 2. 1. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin / well work operations and provide the AOGCC inspector the opportunity to witness cementing operations. 2. Mobilize necessary equipment and personnel to location. Verify well is dead and check for/ gas around well with gas detector. 3. RU boom truck and remove steel cap from top of casing. RIH with small tubing to the ,// obstruction at 220 feet. 4. RU batch cementing unit. Mix and pump 15± ppg, Type I cement plug from 220 feet to surface. Collect returns in vac truck for later disposal in Houston No.3 well. Hang off / --- tubing and cement same in place or recover for future use depending on cementing conditions. 5. Fill 10 x 8-5/8 inch annulus with cement to surface. / 6. Clean up cementing equipment and recover cement rinse water for future reuse or treatment and disposal. WOC. 7. Excavate around casing to six (6) feet, cut off casing a minimum of four (4) feet below / grade level and weld on well ill marker plate. Backfill well excavation and grade for positive drainage 8. Pick up any debris and demobilize equipment to the Houston No. 1 location. / 9. Perform site clearance with AOGCC inspector after P&A operations and at a time of mutual convemence. Attachment 1 GRllnc. clo AOGCC Houston # 22 Well Schematic Permit #200-242 ~ API # 50-009-20018-00 All depths BGL 8 5/8" casing capped with 1/4" steel plate (unsealed) Gl ~ ---- Water @ is' +- 10" Casing Driven @ 76' Unknown Obstruction @ 220' ----.. 85/8" Casing @ 513' , Houston # 22 Fairweather E & P Servioes, Ino. Present Status, June 2, 2004 Toe in 10" X 8 518" annulus unknown No Perforations in Well Water Cement Rev, 01 IN 07/21/04 Drawing Notto Scale James Nunley 7/2812004 · ' All depths BGL GL --- Casing Strings capped wI is'' diameter X 1/4" steel plate @ 4' BGl 10" Casing Driven @ 76' Unknown Obstruction @ 220' ----.. 85/8" Casing,@ 513' Houston # 22 Attachment GRllnc. clo HOl..Iston# 22 Fairweather E & P Services,loc, Proposed 15 PPG +1- cement in 10" X 8 5/8" 15 PPG +1· Type I cement in 8 518" casing Toe in 10" X 8 5/S" annulus unknown No Perforations in Well Rev,01 JN07/21/04 e . e . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: ENFORCEMENT ACTION AGAINST ) GRI, INC. ) ) March 12, 2002 Other No. 15 NOTICE The Alaska Oil and Gas Conservation Commission issued an Enforcement Order in the above captioned matter March 8, 2002. This notice is to inform affected persons of certain rights regarding rehearing and appeal. AS 31.05.080(a) provides that within 20 days after receipt of written notice of the entry of an order 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 rehearing. 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-oih¥J:Wise .distribut-es) an· order. upon-rehearing,.eithec heing. the::-fmal 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 (Le., 10th day after the application for rehearing was filed). DONE at Anchorage, Alaska, this 12Th day of March 2002. ~~') OuU' ~~/ Cammy 0 sli Taylor, Chai() Alaska Oil d Gas Conservation Commission I certify that a copy of the above was mailed on March 13, 2002 to the following at their addresses of record: Jennifer Coughlin, Esq. Vicki Moore ~~iS:~ . . e -. - STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: ENFORCEMENT ACTION AGAINST ) GRI, INC. ) ) March 8, 2002 Other No. 15 ENFORCEMENT ORDER IT APPEARING THAT: 1. Pursuant to 20 AAC 25.535, on July 18, 2001, the Alaska Oil and Gas Conservation Commission ("Commission") issued written notice to GRI, Inc. ("GRI"), and to its surety, Insurance Company of North America ("ICNA"), infonning them that the Commission proposed to take enforcement action, including requiring payment under GRI's surety bond filed with the Commission, due to GRI's failure to comply with 20 AAC 25.105(a), 20 AAC 25.112, and=;2ÖAAe25j70,~'by'not~'plugging and clearing the locations of specified wells as required by those regulations. 2. The Commission's written notice infonned GRI and ICNA, inter alia, that if they failed to file a timely written response, the Commission would consider them to have accepted the proposed Commission action by default, as provided in 20 AAC 25.535(c). 3. At GRI's request, the Commission extended until September 15,2001, the time within which GRI or ICNA could respond to the July 18,2001, written notice. 4. The Commission received no response from GRI or ICNA. 5. On October 12,2001 the Commission wrote GRI and ICNA infonning them that the Commission would proceed to order payment under GRI's surety bond unless GRI or its surety showed good cause no later than October 24, 2001, why the Commission should not do so. 6. The Commission received no response from GRI or ICNA. . . . '" . FINDINGS: 1. GRI is the operator of the Houston #1, #2, #3, #4, and #22 wells in Alaska ("Houston wells"). 2. GRI was owner of the oil and gas leases on which the Houston wells are located at the time they were drilled. 3. GRI's leases on which the Houston wells are located have expired. 4. The Houston wells have not been plugged. 5. The locations of the Houston wells have not been cleared. 6. GRI is the principal and ICNA is the surety on a blanket well surety bond, no. K05880877, in favor of the Commission, under which GRI and ICNA bound themselves to comply, inter alia, with the regulations and orders of the Commission. CONCLUSIONS: 1. Wìtñ1rFmeme-aning::of:10-AAe-2~t05(ä);- tlle-6Wfiél"stightsm--:lne-proþerties on which the Houston wells are located have expired. 2. GRI's failure to plug the Houston wells constitutes non-compliance with 20 AAC 25.105 and 20 AAC 25.112. 3. GRI's failure to clear the locations of the Houston wells constitutes non-compliance with 20 AAC 25.120 and 20 AAC 25.170. 4. GRI and ICNA are liable to pay to the Commission the penal sum of $200,000 under their surety bond no. K05880877. 5. Pursuant to 20 AAC 25.535(c), GRI and ICNA have accepted by default the Commission's proposed action ordering payment under their surety bond no. K05880877. Enforcement Order March 8, 2002 Page 2 of3 . . e . NOW THEREFORE IT IS ORDERED: . 1. No later than March 29,2002, Insurance Company of North America shall pay to the Commission the penal sum of $200,000 under surety bond no. K05880877. 2. The Commission reserves decision on ordering additional remedies or sanctions. DONE at Anchorage, Alaska, this 8th day of March 2002. ÁJ~ØOlL~~~ l~~% , ~:;..~t,~} .-~\~~~';~ I ~~¡~n¡ ~..~~,~/ ~~d' ~ I.¿P t,mu ". ~ . (') d~ '.' '-., \Q" i:'¡~' ~ \. .~ '" _ . e,~7, '';"",:'1 ),~CO~ '. -" -..-- . ...........~ I certify that a copy of the above was mailed certified delivery on March 8, 2002 to the following at their addresses of record: Jennifer Coughlin, Esq. Preston, Gates & Ellis, 420 L Street Ste 400 Anchorage AK. 99501 Certified Mail No 7099 3220 0004 9024 3945 Vicki Moore ACE USA Route 1175 21860 Burbank Blvd., #200 Woodland Hills, CA 91367 Certified Mail No 70993220 0004 9024 3938 ~n~ C~ Jo~lomb~cial Staff Assistant Enforcement Order March 8, 2002 Page 3 of3 ~1A~ Oú¡~~' kl#}--/ Cammy ~.~lSli Taylor, C~ Alaska Oil and Gas Conservation Commission øø;/~ Daniel T. Seamount, Jr Alaska Oil and Gas Conservation Commission ~·M.¡~ JulieM;Heusser, Commissioner. - ., Alaska Oil and Gas Conservation Commission , 200- 01/2 . . ~~fÆ~E LIDF fÆ~fÆ~~~fÆ . AI,ASIiA OIL AND GAS CONSERVATION COMMISSION TONY KNOWLES, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 July 18, 2001 Paul Benetti, CEO GRI, Inc. 89-91 Burswood Road Victoria Park W A 6100 Australia Certified Mail No. 7099 3400 0004 8967 1449 Frederick H. Boness, Registered Agent Preston, Gates, and Ellis, LLP 420 L Street, Suite 400 Anchorage, Alaska 99501 Certified Mail No. 7099 3400 00048967 1418 Gentlemen: In a letter from the Commission dated April 2, 2001, ORI, Inc. ("GRI") was advised that the Houston #1, #2, #3, #4, and m wells, of which GRI, Inc., is operator, appear to be past due for plugging. ORI was asked to inform the Commission as to its plans for expeditiously meeting its well abandonment obligations. The Commission has not received any response to this inquiry. In accordance with 20 AAC 25.535(b), you are notified that the Alaska Oil and Gas Conservation Commission proposes to take enforcement action against GRI, Inc. The nature of the apparent violation(s) or noncompliance is ORl's failure to comply with 20 AAG25.105(a), 20 AAC 25.112, and 20 AAC 25.170, concerning abandonment of the Houston # 1, #2, #3, #4, and #22 wells and concerning location clearance for those wells. The reasons why the Commission considers violation(s) or noncompliance to have occurred are: (1) GRI's leases on which the Houston #1, #2, #3, #4, and #22 wells were drilled have expired; (2) those wells have not been plugged in accordance with 20 AAC 25.112, as required by 20 AAC 25.105(a); and (3) the well locations have not been cleared in accordance with and as required by 20 AAC 25.170. The actions that the Commission proposes to take include requiring payment under GRl's surety bond number K05880877, imposing monetary penalties under AS 31.05.150, and ordering corrective action or remedial work. As provided under 20 AAC 25.535(c), within 15 days after receipt of this notice, GRI (or GRl's surety) may file with the Commission a written response that concurs in whole or in part July 18,2001 Page 2 of2 . . with a proposed Commission action, requests informal review, or requests a hearing under 20 AAC 25.540. The Commission will, in its discretion, extend the 15-day response period for good cause shown. If GRI and its surety fail to file a timely written response, the Commission will consider them to have accepted the proposed Commission action by default. If GRI or its surety requests a hearing, the Commission will schedule a hearing under 20 AAC 25.540. If GRI or GRl's surety requests informal review under 20 AAC 25.535(c), the Commission will provide an opportunity for them to submit documentary material and make a written or oral statement. The Commission will then issue a proposed decision or order. A proposed decision or order becomes final 11 days after it is issued unless within 10 days after it is issued GRI or its surety files a written request for a hearing, in which case the proposed decision or order is of no effect. If GRI or its surety requests a hearing, the Commission will schedule a hearing under 20 AAC 25.540. If GRI and its surety concur in the Commission's proposed action(s) described above, or after an informal review or a hearing under 20 AAC 25.535(c) or 20 AAC 25.535(d), and if the Commission finds that GRI has violated or failed to comply with a provision of AS 31.05, 20 AAC 25, or a Commission order, permit, or other approval, the Commission will, in its discretion, order one or more of the following, as it determines to be applicable: (1) corrective action or remedial work; (2) revocation or suspension of a permit or other approval; (3) payment under the bond required by 20 AAC 25.025; (4) imposition of penalties under AS 31.05.150. Because one of the actions the Commission proposes to take is requiring forfeiture of and payment under GRl's surety bond, a copy of this notice is also being provided to the surety_ (ÛJ\1~ ~J rI Cammy a;ío~~' - Chair mission ~.MI ~ Julie M. Heusser Commissioner cc: Ace USA Insurance Company PO Box 41484 Philadelphia P A 19101-1484 Certified Mail No. 7099 3400 0004 8967 1296 Insurance Company of North America 4220 B Street Anchorage AK 99503 Certified Mail No. 7099 3400 0004 8967 1326 ,1 DIVISION OF OIL AND GAS TONY KNOWLES, GOVERNOR ír. "©lJ&lJ~ @~ &~©rzÆ DEPARTMENT OF NATURAL RESOURCES January 26, 2001 550 WEST 7TH A VENUE, SUITE 800 ANCHORAGE, ALASKA 99501-3510 PHONE: (~~ 269-8800 FAX: (:rf~-8938 CI2/'vI2D JJ¡N Alaska Oil & :1 ] 2001 Gas C. . Al7cl. Ol7s. C. f lOran 0trJl7r <Ie 1SSi017 GRI Inc. Attn. Paul Benetti, CEO. SCANNED JUN () 4 2007 89-91 Burswood Road Victoria Park, W A 6100 Australia Re: Dismantlement, Removal and Rehabilitation (DRR), and Well Plugging and Abandonment (P&A) Required ADL 374135 ADL 388911 ADL 381134 Dear Mr. Teich: Our records indicate that GRI Inc. (GRl) at the above address is the Notification Lessee for the above captioned expired oil and gas leases. GRI must now fulfill the DRR requirements. Paragraph 21 of the leases reads: 21. RIGHTS UPON TERMINATION. Upon the expiration or earlier terminátion of this lease as to all or any portion of the leased area, the lessee will be directed in writing by the state and will have the right at any time within a period of one year after the termination, or any extension of that period as may be granted by the state, to remove from the leased area or portion of the leased area all machinery, equipment, tools, and materials. Upon the expiration of that period or extension of that period and at the option of the state, any machinery, equipment, tools, and materials that the lessee has not removed from the leased area or portion of the leased area become the property of the state or may be removed by the state at the lessee's expense. At the option of the state, all improvements such as roads, pads, and wells must either be abandoned and the sites rehabilitated by the lessee to the satisfaction of the state, or be left intact and the lessee absolved of all further responsibility as to their maintenance, repair, and eventual abandonment and rehabilitation. Subject to the above conditions, the lessee shall deliver up the leased area or those portions of the leased area in good condition. In context: 1. ADL 374135 - Houston #1, #2, #3 Wells, LOICI 95-07, expired Sept. 30,2000\ All testing operations at the Houston #3 should have ceased since the land is no longer under lease. In my letter to you of March 7,2000 I requested plans for activity at these wells. In your letter of March 28, 2000 you planned to clean up the sites and fill and grade the produced water reservoir. You promised a detailed discussion of your plans within 60 days. The detailed plans were never provided. In my letter to you of June 14th I again requested plans by June "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." ~ " ,. "I r. :. 30th. No plans were provided, the lease has now expired, and the required work has not been done. Machinery, equipment, tools, and materials remaining on the lease area after 11 :59 p.m. on Sept. 30,2001, will be removed by the state at GRI's expense. Improvements such as roads, pads, and wells must be abandoned and the sites rehabilitated by GRI to the satisfaction of the state and the leased area delivered up in good condition. Failure to do so is a default and will result in attachment of the bond and legal action as necessary. Until resolved, the performance guarantee of $50,000 will not be released. 2. ADL 388911 (segr. from 374129) -Houston #4 Well, LOICI 95-07, expired July 61998 In my letter to you of March 7, 2000, I requested that you either provide a plan and schedule for converting the well into a water well within 120 days, or provide a plan and schedule for permanent abandonment. In your letter of March 28, 2000, you informed me that GRI was not going to convert it to a water well, and would abandon the well to AOGCC standards. GRI requested until the end of the summer to perform the necessary work. In my letter of June 14,2000 I provided guidance on abandonment requirements and requested a plan that accomplished the work by September 30, 2000. That plan was not provided and the required work Was not done. ----------_._--~.~--- The one year perioðfor DRR has passed. Any machinery, equipment, tools, ana matenaTs------ remaining on the lease area will be removed by the state at GRI's expense. GRI has not abandoned and rehabilitated the site to the satisfaction of the state and has not delivered up the leased area in good condition. GRI has failed to plug and abandon the well to AOGCC standards. By copy of this letter I am requesting that AOGCCcause the permanent plugging and abandonment of the Houston #4 well using the marker plate method. After the well is plugged and abandoned and the AOGCC site clearance issued, the state will inspect the site and take additional action as necessary. Until resolved the performance guarantee of $10,000 will not be released. 3. ADL 381134- Houston #22, LOICI 98-04, expired October 13, 2000 At a minimum the site should be graded and the well permanently plugged and abandoned using the marker plate method. Please contact Steve Strube of the Division of Forestry at 907 761-6316 to discuss site grading and re-vegetation. It may be possible to leave the area in a clean and graded condition for use in logging operations or as a wide spot in the road that will allow two vehicles to pass each other. GRI operations during breakup last spring resulted in damage to the Deception Creek Road. It is my understanding that GRI agreed to pay for $6,000 worth or road repairs. This also needs to be settled with Steve Strube. Any machinery, equipment, tools, and materials remaining on the lease area after 11:59 p.m. on October 13, 2001, will be removed by the state at GRI's expense. Improvements such as ,. J .'11' .. ... roads, pads, and wells must be abandoned and the sites rehabilitated by GRI to the satisfaction of the state and the leased area delivered up in good condition. Failure to do so is a default and will result in attachment of the bond and legal action as necessary. Until resolved the performance guarantee of $50,000 will not be released. I have discussed the need to P&A the wells and rehabilitate these sites with Dave Johnston. He informed me that a work plan has been prepared and submitted to GRI Inc. for approval and funding. It remains GRI's obligation to work with the surface owners to fulfill any surface use agreements or obligation you may have. I will be contacting them myself. Please keep me advised of your plans so that our efforts may be coordinated and successful. Sincerely, M@ß~ Matt Rader Natural Resource Manager cc Bob Crandell- AOGCC Jennifer Coughlin - GRI Inc. - 420 L Street #400 Paul Benetti - GRI Inc. Australia Dave Johnston - Consultant MikkelsenlBaird - Surface Owner Houston #1 Margaret Bryant - Surface Owner Houston #2, #3 Mat-Su Borough - Surface Owner Houston #22 DNR DL WM Rick Thompson -Surface Owner Houston #4 Steve Strube - Division of Forestry Bonnie Harris - Law 04/24/2000 12:26 FAX 907 269 8943 SOA DIV OF OIL & GAS 141001 ., .r State of Alaska DEPARTMENT OF NATURAL RESOURCES DMSION OF on.. AND GAS w~ LEASE AD~JSTRATION 550 West 7" Aveoue, Suite 806 Anchorage, A]a.$ka 99501.3560 (907)269-8814 phone (907)269-8943 fax FAX TRANSMITTAL DELIVER TO: c.. ~ ~ ì ð <.. c..l.,r \ : FAX NUMBER: ?.. I <;q 1 s <-\: 1- DATE: t...\--1....~ - '2..~~ ~ TIME: 11:S~~'- TOT AL PAGES(including mmsmittaI sheet); ..3 \S G."kJ' FROM: f>:~~ COMMENTS: Pax Charge $4,00 plus ~ copies x .25. Please remit this amount ~) to: RECEIVED Depanment of Natural Resources Division of Management 550 West 7th Avenue, Suite 1410 Anchorage, AK 99501-3561 APR 24 20CO .Jilasks. 01; & Gas COilS. Commission Anc.llcrage Make check payable to: Department of Revenue. ***** If you exp,;\rieT1ce any problems I'ðceiving this fax, please call (907) 269·8814 immediately. ,-----",._.,~ 04/24/2000 12:26 FAX 907 269 8943 SOA DIV OF OIL & GAS 141 002 ~PR-=-Ø4-2000 13: Ø2 FROM: SMARTAMr'TO:¡ 831-439-5585 TO"""C:i7 2698939 P. 001 '0æ ~ ~' .- - - "--' - - - - .-: - .< GR.l, Inc. 420L StJ;cet, Suite 400 'Ancho~ge, A}( 99501 M3.{Ch 28. 2000 RECEIVED Matt Rader Natural Resource Manager Department of Natural Resources, Division of Oil and G88 550 West --¡th Ave. Anchorage. Alaska 99501-3510 APR 24 2000 Alaska o¡; & Gas Cons. Commission Anchorage Re: Statas of Operations Houston #1. #2, W3 Wens Houston #4 Well Houston Gas Ficld WeBs LO/CI 95-07 LOfCI 95-07 LO/CI 98-04 ADL374135 ADL 388911 ADL 381134 ADL 374135 Dear Mr. Rader: Thank: you for YOIll'March 7, 2000 lettet informing GRLlne. about the overdue statuS reports ror [he referenced projects. GRI, Inc. apologizes for the delay in submitting these reports. The company recently teOt'ganized and overtoO.ked the due dates for their submìttal foJlowing a change in personneJ. -, "- l:IQU~ton #1. #2. #3 Wells: Houston #3 is currently dewatering coal seams. The well is being monitored on a daily basis. Pressure in the annulus gadually increases and js bled off three dmes each day. Over the past year, pressure WQuld rise to about 40 psi during each monitorlng cyc1e. Recently, annulus pressure has risen to above 50 psi. This may indicate that the dewatering stage may be nearing completion. GRI plans to conduct further geotechnical and reservoir evaluation work in the weJl this summer. We currently arc assessing our options for evaluating this well and will provide DNR with a motC detailed discussion of our plans within 30 to 60 days. Houston #1 and #2 are both in Ii suspended statuS, pending completion of tesúng and evaluation of the Houston #3 wen. G1U monitors each weU daily. FoUowing breakup, GR! plans to conduct addirional site clean up and restoration work at eaçh we" si te. The -reserve pit, which conta1ned brackish water, must be closed. fined and graded. Additional JCStoration work is also needed on the portion of the runway crossed by the access road to the Houston #2 and #3 wells. GRI plans to work closely with the landowneI8 to insure that any COnœIDS they may have about site clean up and restoration are addressed. Houston #4 Well; OR! recently consulted with the adjacent property owner, Robert Teeling. to derermine his imerest in converting the we]] to a warer well. Mr. Teeling is no longerinteœsted in the welL Accordingly, ORl will proceed to plug and 04/24/2000 12:27 FAX 907 269 8943 SOA DIV OF OIL & GAS ~003 'APR:::04-2ØØØ 13: œ FROM: SMARTAMF"'"''T'CA ~ 831-439-5585 TO---::J7 2698938 p. øæ....øæ "-" abandon the wel1 in accordance with Alaska Oil and Gas Conservation Commission regulations fQllowing b1eaJc:.up. GRl respectfully requests that j[ be allowed until the end of me summer to abandon it and to ~rfOIIl1 any site clean up or restoration work that may be required. Houston Gas Field: OR! has commenced drilling rhe Houston #22 well in Section 9, T18N, R:3W, Seward Meridian under the authority of LO/Cr 98~. Depending on drllling results, GRI win either proceed wim testing operation or drill another evroua.tion welJ elsewhere on the lease in order to determine its commercial viability. Should testing of the Houston #22 prove warranted, OR! proposed to drill an injection well near the Houston #22 well. We will then proceed with dewatering operations by pumping the water to the surface and then injeçting it into the injection wen. TIùs process will allow the wBter to be metemd and more accurate evaluation of [he wen to be conducted. As indicated above, GRI is currently evaluacinf; the Houston #F3 well. Once we det~nnjne rhe nppropriate cvalu~tion prograro to assess the gas potentia] of tho well given its recent change in performance çharncteristics, we wj) be in a much better position to advíse DNR concerning the Jong range plans for [he Houston Gas Field. DNR. shou1d also be aware that GRI is considering separate offers to purchase the company from. several coalbcd mcthane development companies .in the lower 48. OR! is currently reviewing these offcrs and will seek to close a deal with the company that is best suited for developing Alaska's resowÇes, Because: of the sensitivity of negotiations, GRI is not at liberty to disclose the names of these companies at this time, OR! will inform DNR immedi!1teJy jf negotiàtions are successful. GRI will tuHy inform any new owner of the obligations artd responsibiliries associared with its operations in th~ Houston Gas Field. Should you ha.ve any questions about GRI's operations, please contact me rurectly or David Johnston, our local contact in Anchorage. He Can be reacbed àt 345.2629. &;..?{ 345-2629 David W. J ohnston 320Marine:;:~,Anchorage,Alaska 99515 Oil and Gas Conseroation and Environmental Assessment, Regulatory Compliance, and Permit Acquirition May 30, 2000 " "::, 'I "'000 \.) J L '\,1 Daniel T. Seamount, Jr. Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 i;!a$ka &. Ga:, Com!, Dear Mr. Seamount: Jennifer Coughlin has asked me to respond to your letter to her dated May 23, 2000. Thank you for informing us that Mr. Wondzell's e-mail titled ''Notice of Violation" is not considered by the Commission to be a notice of violation or enforcement under 20 AAC 25.535. I hope that we have now put an end to these issues, and can continue to move forward in a productive manner. In response to your solicitation of suggestions to improve the process, I would recommend that you revise the Commission's standard approval letter and specifically designate Mr. Wondzell as the Commission representative who must be notified before drilling operations commence, ifthe Commission really wants a single point of contact. As written, the approval letter simply states that "notice may be given by contacting the Commission at 279-1433." Please be assured that in future I will contact Mr. Wondzell directly before undertaking further work with Houston #22 or any other wells that GRl may decide to drill or reenter. With regard to the compliance issues set forth in your letter, I am somewhat confused regarding the basis for your beliefthat GRl is not presently in compliance with the three Commission regulations you discuss. I am aware that a spacing exception will be required for Houston #22 if GRl decides to test the well, and that certain information must be submitted to the Commission within 30 days after its completion, suspension or abandonment. However, since GRI has not yet completed, suspended or abandoned the well, or decided to conduct testing operations, I fail to see how Houston #22 can be out of compliance with either 20 AAC 25.055 or 20 AAC 25.071 at this time. Currently, the well has been temporarily shut down in accordance with 20 AAC 25.072. Mr. Christenson approved GRl's request for shut down on May 9,2000. Because the approved Form 10-403 required only a written notice of startup and not a Form 10-404 as a condition of approval, I assumed the Commission had waived the requirement for the Form 10-404 in accordance with 20 AAC 25.072(b). Ifthe Commission has now changed its position, I will be pleased to submit the appropriate form. I appreciate your desire to conduct Commission affairs in a professional, businesslike manner, aside fÌ'om personal agenda, and appreciate the Commission giving the original permit application expedited review so that drilling operations could begin prior to GRI's lease expiration date of March 31. It was never my intention to bypass Mr. Wondzell in this process, and it is unfortunate that "miscommunication" has marred what began as a positive relationship between the Commission and me. cc. Jennifer Coughlin, Preston, Gates and Ellis, LLP Blair Wondzell, Senior Petroleum Engineer Camille Oechsli Taylor, Commissioner Robert Christenson, Commissioner ~lT~lTŒ rnJ~ L%~~~~~ / I í I TONY KNOWLES, GOVERNOR ALASKA OIL AND GAS / CONSERVATION COJUlISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 May 23, 2000 GRI Inc. Ms. Jennifer Coughlin- Agent Preston, Gates, and Ellis, LLP 420 L Street, Ste 400 Anchorage, AK 99501 Dear Ms_ Coughlin: We wish to clarify recent correspondence fÌ'om Mr. Blair Wondzell (of the Commission staff) to Mr. David Johnston (GRI's designated contact for the Houston #22 Well) dated May 12,2000. The e-mail titled "Notice of Violation" is not to be considered a notice of violation or enforcement under 20 AAC 25.535. The purpose of the e-mail was to communicate Mr. Wondzell's fiustration at being unable to witness the operation of drilling equipment with which the Commission has limited practical experience. Also, the Commission wishes to alert you of some compliance issues. which should be fairly easy to address. Hou,çton #22 Permit to Drill GRI made a number of special requests with respect to the Application for Permit to Drill the Houston #22 Well. Please note that this was not a routine application for a permit to drill: · GRI's proposed location requires a spacing exception based on close proximity to a change of lease ownership. This was stated on the approval letter attached to the permit to drill. · GRI requested a waiver of essentially all well-control requirements (including waivers for blowout prevention equipment, divel1er. and drilling tluid). · GRl's operations involved a drilling technique that is unusual for gas exploitation in Alaska. · GRl's drilling contractor was unknown to the Commission. · GRI requested expedited review and emphasized to the Commission that drilling operations must begin before March 3 I. 2000 in order to hold the lease. GRl's application received immediate and prioritized attention by numerous members of the Commission. We provided specialized assistance to Mr. Johnston including advice on properJy locating the \vell on the lease, assessing the potential for shallow gas bazards. . Jennifer Coughlin GRI, Inc. 2 May 23, 2000 and ensuring safe operations. The permit to drill was approved within the requested time trame, enabling the drilling of the well, which may have preserved GRI's lease, In light of the unusual nature of the Houston #22 operation, Mr. Wondzell requested that he be notified in sufficient time to witness initiation of drilling operations. This request was clearly made in most of the meetings with Mr. Johnston and on the approval letter for the permit to drilL Perhaps the approval letter should have been more specific concerning the procedures for contacting the Commission. Nonetheless, in our experience, all other operators understand that they are to contact the senior petroleum engineer (Mr. Wondzell) or one of his inspectors regarding drilling matters. A possible solution to GRI's and the Commission's current "miscommunication" would be to formally specify dates, times, contact persons, and other conditions in the approval of a GRI application to the Commission. However, we are hesitant to do this because of resulting encumbrances on the efficiencies of both GRI and the Commission. We are in receipt of a letter from Mr. Johnston (attached). In this letter, he alludes to his long experience with the Commission. His experience should have sharpened his awareness of the intent of Mr. Wondzell's requests (to witness the operation) and the Commission's stipulations in the approval letter. For example, informally stating that drilling may commence within the "next 24 to 48 hours" during a conversation with a Commission staff member who is not responsible for drilling operations does not constitute a proper notice of commencement of drilling. Also of concern is a statement in Mr. Johnston's letter insinuating that Mr. Wondzell practiced unprofessional conduct by stating "I suspect that if I did not have a prior relationship with the Commission, Blair (Mr. Wondzell) would not be taking this aggressive stance."' The Commission would like to emphasize that Mr. Wondzell has no personal agenda in this matter. 1fhe had, he could have held up the evaluation and approval process. In reality. Mr. Wondzell strongly influenced the statT and the commissioners to evaluate and approve the permit to drill ensuring that the well was spud on time. ContlJliance I.~,mes GRl is currently out of compliance with three Commission regulations regarding the Houston #22 Well · Application for spacing exception (20 AAC 25.055) The regulations have specific and clear requirements · Description of GRI' s plans to evaluate (well logs) (20 AAC 25.071) and complete the \vell (20 AAC 25072) Sundry notices are required whenever weJl operations are suspended and re-started (Forms 10-403 and 10-404) · Jennifer Coughlin GRI, Inc. 3 May 23, 2000 Compliance with these regulations is required before testing the Houston #22 and also to classify it as a gas well. Summarv The Commission is very interested in the development of coal bed methane and is aware and appreciative of the huge potential benefit to the State of Alaska if GRI' s project is successful. It is, however, a new technology to Alaska, and we must proceed with caution. The regulations governing oil and gas operations in Alaska protect health, safety, the environment, and correlative rights while minimizing waste. Commission conditions on oil and gas operations must be treated in a professional, businesslike manner, aside tTom personal agenda. As stated above, it is not our intent to invoke the violation section of our regulation 20 AAC 25.535, but to solicit your help and cooperation in the conduct of our mutual business. We welcome your suggestions in making this process beneficial to both parties. Sincerely, Daniel T Sèamount, Jr. Commissioner Attachment (1 ) cc: Robert Christenson - (w/out attachment) Cammy Oechsli-Taylor - (w/out attachment) Blair Wondzell - (w/out attachment) Robert Crandall - (w/out attachment) David Johnston - hviout attachment} Phone: (907) 345-2629 D . d W J he-mail: dwjohnston@mícronet.net aVl . 0 nston 320MarinerDrive,Anchorage,Alaska 99515 Oil and Gas Conservation and Environmental Assessment, Regulatory Complianæ, and Permit Acquisition May 15,2000 Robert N. Christenson Camille Oechsli Taylor Daniel T. Seamont, Jr. Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 99501 , . :tV 1 6 200a Dear Bob, Cammy, & Dan, Does Blair Wondzell's "notice of violation", e-mail dated May 12,2000, represent the official position of the Commission or is he acting independently without commissioner knowledge? I admire Blair's attention to detail in recounting the sequence of events ITom the guest sign-in sheets. However, the summary does not reflect my visit to the Commission on March 29. Because I did not go beyond the ITont desk, I did not sign nor was I requested to sign the visitor sheet. I was there to deliver an Application for Sundry Approvals for the change of well control fluid (see confirmation date stamp· on the 10-403). At that time, I asked to speak to Bob Crandall and he was called to the ITont desk. I stressed to him that I was providing official notice of our intent to spud within the next 24 to 48 hours. I believe Lori or Shelley may have been present in the reception area when I gave notice to Bob. Contrary to Blair's claims, my notice was clearly articulated and reflected the realization that drilling operations would commence by our deadline. Commencing drilling operations by the end of the day on Friday, March 31, was critical- it was necessary to save the lease. This information was stated in the cover letter to the Permit to Drill application, and repeatedly stressed by me to AOGCC staff, including Blair. Had we waited until "sometime during the weekend" as Blair alludes, GRI's right to drill on that lease would have terminated and the well could not have been drilled. The Permit Approval letter states "You must provide notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation." The letter does not specify that notice must be given directly to Blair nor does it state that an exact time for spud must be given. As the permit did not state a specific person or position to be informed, I gave notice to Bob because I viewed him as the person taking lead on this permit. I know Bob to by a very reliable, conscientious employee. I was confident that by informing him, I was giving proper notice and that the information would be passed on to the rest of the Commission, including Blair. From my own experience with the Commission, I know that notice is not limited to one person nor to an exact time when the bit would turn. During my tenure as commissioner, I took calls concerning commencement of drilling, and in turn passed that information on to staff. Has the Commission's notification procedure recently changed or is Blair establishing a procedure unique to this situation? According to the requirements of the permit, I gave proper notice of commencement of drilling. Failure of the staff to communicate between themselves should not constitute a violation by the operator. I suspect that if! did not have a prior relationship with the Commission, Blair would not be taking this aggressive stance. I request that the commissioners clarifY the official position of the Commission in this matter. Does the Commission concur with Blair's belief that a violation has occurred or is he acting without your authorization? I do not take this issue lightly; it is a serious matter that can reflect negatively on my reputation and affect my ability to earn a living. cc: Jennifer Coughlin, Preston, Gates and Ellis, LLP Blair Wondzell, AOGCC Bob Crandall, AOGCC Attachment NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRl's Well Houston #22. PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: "You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. Seauence of events: From "Guest" sign in sheet DATE NAME TO SEE PURPOSE , ' 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. ~ .Le~ve.-.... \......ó..,,<.,~ 3/8/00 David Johnston Tom M. Need for diverter & threaded casing. "...~-t-C.è\ \-0 ~\~,,-"'-'- . 5T04 TU." (J ~ ti.....$ \- 3/10/00 David Johnston Howard Location survey method. , ., .. J w. (i¡'!o.. 3/13/00 David Johnston Tom PTD conditions - diverter & casing. I) 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston BlairWondzell Blair requested this meeting with the 3/21/00 Pete Tester Blair Wondzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contractor, his drilling rig, drilling techniques. safety equipment, and experience in handling gas "at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston Blair Drilling & esp., drill fluid requirements. 3/24/00 David Johnston Blair Wondzell Drill permit requirements. 3/28/00 David Johnston B Wondzell PTD requirements, CO?" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the "APPLICATION FOR SUNDRY APPROVALS" request form -10-403- dated 3/29/00 and approved by Commissioner Daniel T. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend". Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. A comment "sometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative of the Commission could witness the qperation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subiect violation - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair WondzelllD.W. Johnston 1. Johnston to Wondzell - 24 Apr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 --MIRU, drive conductor casing 14 feet. April1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open holebelow conductor casing to 123 feet. April 3-D rill to 443 feet. ApriI4·-Drilled to TO at 515 feet, pull drilling assembly out of hole. ApriI5--Pick up casing, run and weld 320 feet 8518 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - April 28. 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol [Fwd: Drilling Permit Violation - Houston #22 - - PTD 200-042] Subject: [FWd: Drilling Permit Violation - Houston #22 - -PTD 200-042] Date: Mon, 15 May 2000 11:25:21 -0800 From: "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> Organization: doa-aogcc To: Camille Oechsli <cammy_oechsli@admin.state.ak.us> t.... ................................................................................................................................................... ................................................................................... ......................... Subject: Drilling Permit Violation - Houston #22 - - PTD 200-042 Date: Fri, 12 May 200009:14:54 -0800 From: Blair Wondzell <blair_wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Jennifer Coughlin <coughlin@prestongates.com> CC: David Johnston <dwjohnston@micronet.net>, Dan Seamount <Dan_Seamount@admin.state.ak.us> GRI Agent, Jennifer Coughlin During the drilling of GRI's well, Houston #22, a violation occurred in that the Commission was not given notice of date and time of spudding. Therefore the commission was not afforded the opportunity to witness the actual drilling operations. The attached report lists details, analysis, conclusions, and changes for future permitting. Johnston is correct in that we shouldn't make a big issue out of this, but we did lose the opportunity to observe a drilling operation with which we are not familiar but are called-upon to permit. For future GRI operations, we can require an inspection immediately prior to spud as a condition of approval, this will ensure that we know when operations are to begin. If you have questions or want to discuss the incident, please contact me bye-mail or call me at 793-1226. Sincerely, Blair Wondzell, P.E. Sr. Petroleum Engineer I of 1 5/15/00 11:28 M l Fwd: Attachment - PTD Violation, Houston 22 - - PTD 200-042] -Subject: [Fwd: Attachment - PTD Violation, Houston 22 - - PTD200-042] Date: Moll, 15 May 2000 11:24:41 -0800 From: "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> Organization: doa-aogcc To: Camille Oechsli <cammy _ oechsli@admin.state.ak.us> I........................................................... .....................................................................................................................................................................-..........................., ............................,-........................... Subject: Attachment - PTD Violation, Houston 22 - - PTD 200-042 Date: Fri, 12 May 2000 09:23 :23 -0800 From: Blair Wondzell <blair_wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Jennifer Coughlin <coughlin@prestongates.com> CC: David Johnston <dwjohnston@micronet.net>, Dan Seamount <Dan_Seamount@admin.state.ak.us> Jennifer, Here is the attachment. Blair ~.~~.~,~----~_. Name: H22-ptd-viol.doc DH22-ptd-viol.doc Type: Microsoft Word Document (application/msword) Encoding: base64 101' 1 5/15/00 11:28 AM NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRI's Well Houston #22, PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: ' "You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. Sequence of events: From" Guest" sign in sheet DATE NAME TO SEE PURPOSE 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. 3/8/00 David Johnston Tom M. Need for diverter & threaded casing. 3/10/00 David Johnston Howard Location survey method. 3/13/00 David Johnston Tom PTD conditions - diverter & casing. 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston Blair Wondzell Blair requested this meeting with the 3/21/00 Pete Tester Blair Wondzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contractor, his drilling rig, drilling techniques, safety equipment, and experience in handling gas" at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston 3/24/00 David Johnston 3/28/00 David Johnston Blair Drilling & esp., drill fluid requirements. Blair Wondzell Drill permit requirements. B Wondzell PTD requirements, "?" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the" APPLICATION FOR SUNDRY APPROVALS" request form - 1 0-403 - dated 3/29/00 and approved by Commissioner Daniel T. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31, 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend". Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. A comment Usometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative of the Commission could witness the operation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subject violation - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair WondzeIl/D.W. Johnston 1. Johnston to Wondzell - 24 Apr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 --MIRU, drive conductor casing 14 feet. April 1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open holebelow conductor casing to 123 feet. April 3--Drill to 443 feet. April 4--Drilled to TD at 515 feet, pull drilling assembly out of hole. April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - April 28, 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol Drilling Permit Violation - Houston #22 - - prD 200-042 Subject: Drilling Permit Violation - Houston #22 - - PTD 200-042 Date: Fri, 12 May 200009:14:54 -0800 From: Blair W ondzell <blair _ wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Jennifer Coughlin <coughlin@prestongates.com> CC: David Johnston <dwjohnston@micronet.net>, Dan Seamount <Dan _ Seamount@admin.state.ak.us> GRI Agent, Jennifer Coughlin During the drilling of GRI's well, Houston #22, a violation occurred in that the Commission was not given notice of date and time of spudding. Therefore the Commission was not afforded the opportunity to witness the actual drilling operations. The attached report lists details, analysis, conclusions, and changes for future permitting. Johnston is correct in that we shouldn't make a big issue out of this, but we did lose the opportunity to observe a drilling operation with which we are not familiar but are called-upon to permit. For future GRI operations, we can require an inspection immediately prior to spud as a condition of approval, this will ensure that we know when operations are to begin. If you have questions or want to discuss the incident, please contact me bye-mail or call me at 793-1226. Sincerely, Blair Wondzell, P.E. Sr. Petroleum Engineer 10f! 5/12/003:23 PM NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRI's Well Houston #22, PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: IIYou must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. Sequence of events: From IIGuest" sign in sheet DATE NAME TO SEE PURPOSE 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. 3/8/00 David Johnston Tom M. Need for diverter & threaded casing. 3/10/00 David Johnston Howard Location survey method. 3/13/00 David Johnston Tom PTD conditions - diverter & casing. 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston Blair Wondzell Blair requested this meeting with the 3/21/00 Pete Tester Blair Wondzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contractor, his drilling rig, drilling techniques, safety equipment, and experience in handling gas "at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston 3/24/00 David Johnston 3/28/00 David Johnston Blair Drilling & esp., drill fluid requirements. Blair Wondzell Drill permit requirements. B Wondzell PTD requirements, "?" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the "APPLlCATION FOR SUNDRY APPROVALS" request form - 10-403 - dated 3/29/00 and approved by Commissioner Daniel T. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31, 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend". Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. A comment "sometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative of the Commission could witness the operation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subject violation - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair Wondzell/D.W. Johnston 1. Johnston to Wondzell - 24 Apr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 --MIRU, drive conductor casing 14 feet. April 1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open holebelow conductor casing to 123 feet. April 3--Drill to 443 feet. April 4--Drilled to TD at 515 feet, pull drilling assembly out of hole. April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - April 28, 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol [Fwd: DriYing Permit ':iolation - Houston #22 - - prD 200-042] Subject: [Fwd: Drilling Permit Violation - Houston #22 - - PTD 200-042] Date: Mon, 15 May 2000 11 :25 :21 -0800 From: "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> Organization: doa-aogcc To: Camille Oechsli <cammy_oechsli@admin.state.ak.us> t.... ......................... ................................................................... .................................... Subject: Drilling Permit Violation - Houston #22 - - PTD 200-042 Date: Fri, 12 May 200009:14:54 -0800 From: Blair Wondzell <blair_wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Jennifer Coughlin <coughlin@prestongates.com> CC: David Johnston <dwjohnston@micronet.net>, Dan Seamount <Dan _ Seamount@admin.state.ak.us> GRI Agent, Jennifer Coughlin During the drilling of GRI's well, Houston #22, a violation occurred in that the Commission was not given notice of date and time of spudding. Therefore the commission was not afforded the opportunity to witness the actual drilling operations. The attached report lists details, analysis, conclusions, and changes for future permitting. Johnston is correct in that we shouldn't make a big issue out of this, but we did lose the opportunity to observe a drilling operation with which we are not familiar but are called-upon to permit. For future GRI operations, we can require an inspection immediately prior to spud as a condition of approval, this will ensure that we know when operations are to begin. If you have questions or want to discuss the incident, please contact me bye-mail or call me at 793-1226. Sincerely, Blair Wondze11, P.E. Sr. Petroleum Engineer 1 of 1 5/15/00 11:28 AM l fwd: Attachment - PTD Violation, Houston 22 - - PTD 200-042] . . Subject: [Fwd: Attachment - PTD Violation, Houston 22 - - PTD 200-042] Date: Mon, 15 May 2000 11:24:41 -0800 From: "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> Organization: doa-aogcc To: Camille Oechsli <cammy_oechsli@admin.state.ak.us> r.:. ...................... ............................... ........... .......................... .................................. Subject: Attachment - PTD Violation, Houston 22 - - PTD 200-042 Date: Fri, 12 May 200009:23:23 -0800 From: Blair W ondzell <blair _ wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Jennifer Coughlin <coughlin@prestongates.com> CC: David Johnston <dwjohnston@micronet.net>, Dan Seamount <Dan _Seamount@admin.state.ak.us> Jennifer, Here is the attachment. Blair ~""-'-" ................ ··Ju~·.·.·.·.....·.·~~·.·'N .............~....·.·.·__N...........,......· ......... '" ._..........." ....~...._._.......,................... .. ·v._.·.'V.·.·M·.....·.·,,· . ···..........·.·.,·.·.·.·.·.·.·.w·.···-.- .-.-.-.·.·.·.·.·.·.·.w.·.w.·' Name: H22-ptd-vioLdoc . DH22-ptd-vioLdoc Type: Microsoft Word Document (application/msword) . Encoding: base64 . 10f! 5/15/00 11:28 AM NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRI's Well Houston #22, PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: ' "You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. Sequence of events: From" Guest" sign in sheet DATE NAME TO SEE PURPOSE 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. 3/8/00 David Johnston Tom M. Need for diverter & threaded casing. 3/10/00 David Johnston Howard Location survey method. 3/13/00 David Johnston Tom PTD conditions - diverter & casing. 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston Blair Wondzell Blair requested this meeting with the 3/21/00 Pete Tester Blair Wondzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contractor, his drilling rig, drilling techniques, safety equipment, and experience in handling gas II at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston 3/24/00 David Johnston 3/28/00 David Johnston Blair Drilling & esp., drill fluid requirements. Blair Wondzell Drill permit requirements. B Wondzell PTD requirements, "?" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the" APPLICATION FOR SUNDRY APPROVALS" request form - 1 0-403 - dated 3/29/00 and approved by Commissioner Daniel T. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31, 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend" . Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. A comment "sometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative af the Commission could witness the operation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subject violation - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair Wondzell/D.W. Johnston 1 . Johnston to Wondzell - 24 Apr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 --MIRU, drive conductor casing 14 feet. April 1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open hole below conductor casing to 123 feet. April 3--Drill to 443 feet. April 4--Drilled to TD at 515 feet, pull drilling assembly out of hole. April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - April 28, 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol .M. ). '116 11.- r D...-.kL...,,\-->. Ju/~fÞ2-Z ~ ~~ ~(J J¿~~ -r ~ ~~ ~. .ß--~ ~ æ -H..J-- -L.. ~ ~ ~ IG.-J "~~-. ---L~ ~~f 1(~~<4 ~-~~~ -1~ ~ ~~L~ --LL-1ö~~J WJ ~ +0 fU)~- --L ~.----- t ~ ~ ~ ~ ~~~~~ -~-d~ÀA:)b¡~'f~ ~ 1ùM~ ~ ~ ~ .Ii ~ <Jv--'J Re: Weekly reports, Houston 22 Subject: Re: Weekly reports, Houston 22 Date: Fri, 28 Apr 2000 18:59:03 -0800 From: "D. W. Johnston" <dwjohnston@micronet.net> To: "Blair Wondzell" <blair_wondzell@admin.state.akus> CC: "bob crandall" <bob_crandall@admin.state.akus> , "Camille Oechsli" <Cammy_Oechsli@admin.state.ak.us>, "Robert Christenson" <robert_christenson@admin.state.akus> , "Dan Seamount" <dan_seamount@admin.state.akus> Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave ----- Original Message ----- From: "Blair Wondzell" <blair wondzell@admin.state.ak.us> To: "D. W. Johnston" <dwjohnston@micronet.net> Sent: Friday, April 28, 2000 10:22 AM Subject: Re: Weekly reports, Houston 22 > David, > This is to let you know that I received your e-mail. I'm disturbed that > we were not given proper notice of the spud time, particularly since you > knew that Tom and I wanted to witness the drilling operation. I am > working on a report laying out the sequence of events, when completed, > I'll see you get a copy. > Sincerely, Blair Wondzell, 4/28/00. > > > "D. W. Johnston" wrote: > > > Blair, This is what I have sent to Bob Crandall: Week 1: > > > > March 30 --MIRU, drive conductor casing 14 feet. > > > > April 1-2--Conductor casing driven until refusal at 76 feet into > > competent siltstone, pullout of hole, pick up tool to mill out casing > > shoe, begin milling shoe. > > > > April 2--Complete milling shoe, pullout of hole, pick up drilling > > assembly and drill collars, reenter hole and drill open hole below > > conductor casing to 123 feet. > > > > April 3--Drill to 443 feet. > > > > April 4--Drilled to TD at 515 feet, pull drilling assembly out of > > hole. > > > > April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, 10f2 5/11/00 10:25 AM Re: Weekly reports, Houston 22 20f2 > > unable to get casing to bottom, formation swelling, pull casing out of > > hole. > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Week 2: April 6--pick up hole opener, go in hole and ream hole. April 8-12--Run casing into hole while reaming, set casing at 511 feet. Pull drill pipe and reaming tool, wire line parts while extracting drill pipe and reamer, lose 220 feet of drill pipe down hole, pick up overshot, return in hole, commence fishing operations. Week 3: April 13-Recover 220 feet of drill pipe. MIRU cementing equipment April 14-Circulate hole with water until clean. Weld cement head to casing, begin pumping cement, pump 206 sacks while reciprocating casing, good returns to surface, hold pressure on casing while cement sets up. April lS-Cement falls back approximately 20-30 feet, perform top job to bring cement back to surface. April 17-18-Maintain pressure on casing, demob cement equipment, begin demob of drilling equipment, drill pipe, casing, etc. Road becomes impassible on April 18. Drill rig and water system remain onsite. Dave I recommend that forwarding macro get to everyone. AOGCC set up an agency e-mail mailbox, with a for individual staff so that messages will be sure to 5/11/00 10:25 AM Jennifer M. Coughlin Agent for GRI, Inc, GRI, Inc, 420 L Street Ste 400 Anchorage, AK 99501 Re: Houston #22 GRI, Inc. Permit No: 200-042 Sur. Loc, 3460'FSL, 730'FWL, SEe. 09, TI8N, R03W, SM Btmhole Loc. 3460'FSL, 730'FWL, SEe. 09, TI8N, R03W, SM Dear Ms. Coughlin: Enclosed is the approved application for permit to drill the above referenced well. However, you are not authorized to open the wellbore to test or regular production until you have complied with the provisions of20 AAC 25.055. The permit to drill does not exempt you from obtaining additional permits required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permitting determinations are made. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use. You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433. Sincerely, Daniel T. Seamount, Jr. Commissioner BY ORDER OF THE COMMISSION DA TED this ~ day of March 2000 dlfÆnclosures cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. d.-öo - 4 ;).. )~ tJ:::-zz. ---~ ]1: ~.~ ..~ ~ PTD ~ - IJ~,~ ?f/¡.1 4~1 ~ "'I ~ ~ - ,ð-«--k,v" ~ .3}<H Pm ~ - ~ ·ŒD'W " \ Phone: ~O7) 345-2629 .......... D ·d W J hn e-mai1: dwjohnston@micronet.net: aVl . 0 ston 320MarinerDrive.,Anchmage.Alaska 99515 Oil and Gas CORSeroafÌon and EnvironmentalAssessment, Regulatory Co111jJlianCt, and Permit Acq1iÌsition May 15,2000 .-:.;")Ø!IÐ <":"~ Robert N. Christenson Camille Oechsli Taylor Daniel T. Seamont, Jr. Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 99501 :.'1 Î 6 200a ;~ ';".:ti,·U.1. Dear Bob, Cammy, & Dan, Does Blair Wondzell's "notice of violation", e-mail dated May 12,2000, represent the official position of the Commission or is he acting independently without commissioner knowledge? I admire Blair's attention to detail in recounting the sequence of events ftom the guest sign-in sheets. However, the summary does not reflect my visit to the Commission on March 29. Because I did not go beyond the ftont desk, I did not sign nor was I requested to sign the visitor sheet. I was there to deliver an Application for Sundry Approvals for the change of well control fluid (see confirmation date stamp·on the 10-403). At that time, I asked to speak to Bob Crandall and he was called to the front desk. I stressed to him that I was providing official notice of our intent to spud within the next 24 to 48 hours. I believe Lori or Shelley may have been present in the reception area when I gave notice to Bob. Contrary to Blair's claims, my notice was clearly articulated and reflected the realization that drilling operations would commence by our deadline. Commencing drilling operations by the end of the day on Friday, March 31, was critical- it was necessary to save the lease. This information was stated in the cover letter to the Permit to Drill application, and repeatedly stressed by me to AOGCC staff, including Blair. Had we waited until "sometime during the weekend" as Blair alludes, GRI's right to drill on that lease would have terminated and the well could not have been drilled. The Permit Approval letter states "You must provide notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation." The letter does not specify that notice must be given directly to Blair nor does it state that an exact time for spud must be given. As the permit did not state a specific person or position to be informed, I gave notice to Bob because I viewed him as the person taking lead on this permit. I know Bob to by a very reliable, conscientious employee. I was confident that by informing him, I was giving proper notice and that the information would be passed on to the rest of the Commission, including Blair. From my own experience with the Commission, I know that notice is not limited to one person nor to an exact time when the bit would turn. During my tenure as commissioner, I took calls concerning commencement of drilling, and in turn passed that information on to staff. Has the Commission's notification procedure recently changed or is Blair establishing a procedure unique to this situation? According to the requirements of the permit, I gave proper notice of commencement of drilling. Failure of the staff to communicate between themselves should not constitute a violation by the operator. I suspect that if! did not have a prior relationship with the Commission, Blair would not be taking this aggressive stance. I request that the commissioners clarify the official position of the Commission in this matter. Does the Commission concur with Blair's belief that a violation has occurred or is he acting without your authorization? I do not take this issue lightly; it is a serious matter that can reflect negatively on my reputation and affect my ability to earn a living. cc: Jennifer Coughlin, Preston, Gates and Ellis, LLP Blair Wondzell, AOGCC Bob Crandall, AOGCC Attachment NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRl's Well Houston #22, PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: "You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. Seauence of events: From "Guesf sign in sheet DATE NAME TO SEE PURPOSE . 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. ~ ,t.tfel&'- ...~\_.:oN"C.~ 318100 David Johnston Tom M. Need for diverter & threaded casing. Y"~"c.c' \0 t u-:__ . ~T'" ~..., ~ r \1_.-- 3110/00 David Johnston Howard Location survey method. , , .. J ..... <n~. 3113/00 David Johnston Tom PTD conditions - diverter & casing. I I 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston Blair Wondzell Blair requested this meeting with the 3/21/00 Pete Tester BlairWondzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contrador, his drilling rig, drilling techniques, safety equipment, and experience in handling gas "at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston Blair Drilling & esp., drill fluid requirements. 3/24/00 David Johnston Blair Wondzell Drill permit requirements. 3/28/00 David Johnston B Wondzell PTD requirements, "?" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the "APPLICATION FOR SUNDRY APPROVALS" request form - 1 0-403 - dated 3/29/00 and approved by Commissioner Daniel T. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31, 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend". Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. A comment "sometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative of the Commission could witness the qperation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subiect violation - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair WondzelllD.W. Johnston 1. Johnston to Wondzell - 24 ADr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 -MIRU, drive conductor casing 14 feet. ApriI1-2-Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open holebelow conductor casing to 123 feet. April 3-Drill to 443 feet. April4-Drilled to TD at 515 feet, pull drilling assembly out of hole. ApriI5--Pick up casing, run and weld 320 feet 85/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - ADril 28. 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol [F.'" Hoú.oo '22] - - PERMIT TO DRtLL . 2~ e Subject: [Fwd: Houston #22] - - PERMIT TO DRILL # 200-042 Date: Thu, 22 Jun 2000 13: 13 :25 -0800 From: Blair W ondzell <blair _ wondzell@admin.state.akus> Organization: State of Alaska, Dept of Admin, Oil & Gas To: Dan Seamount <Dan _ Seamount@admin.state.ak.us>, Robert Crandall <bob_crandall@admin.state.akus>, Steve Davies <steve _ davies@admin.state.akus> Dan, Bob, Steve, FYI Blair Subject: Re: Houston #22 Date: Thu, 22 Jun 2000 13 :09:26 -0800 From: "D. W. Johnston" <dwjohnston@micronet.net> To: "Blair W ondzell" <blair _ wondzell@admin.state.akus> Thanks Blair. The operation may not occur on June 26, but may be later in the week. Apparently Schlumberger is quite busy, and they indicated to me today that they may not be able to get to GRI until later in the week. I will keep you informed. Dave ----- Original Message ----- From: "Blair Wondzell" <blair wondzell@admin.state.ak.us> To: "David Johnston" <dwjohnston®micronet.net> Cc: "Robert Crandall" <bob crandall@admin.state.ak.us>i "Dan Seamount" <Dan Seamount@admin.state.ak.us> Sent: Thursday, June 22, 2000 12:46 PM Subject: Houston #22 > GRI - David Johnston: > Below we have provided answers to all of you questions. > Please keep us posted on the logging operation since we might witness > it. Are you planning on the morning or afternoon? If the date or time > .changes, please advise, my phone number is work 793-1226, home 345-5609. > > > >, GRI is planning on entering the Houston #22 well to conduct logging > operations. Schlumberger will do the logging. The work will occur on > June 26 and will last less than a day. Do you require any additional > information. > A. Are you planning to do the logging in the morning of afternoon? > Bob Crandall said that he or Steve might come up. > > The sundry approval for operation shut down stated a written notice was > required when operation began again. Is this e-mail sufficient? > A. Yes. Technically, this is not an operation start-up. > > After logging operations, the well will be secured and operations shut > down again pending evaluation of the logs and a final decision on > whether to complete, abandon, or deepen the well. Should I submit > another request for operation shut down following logging operations? > Should you also desire, I can file a 10-404 as well. > A. No, another operation shut down is not warranted nor is another > 10-404. (We do not consider logging an operation start-up.) > > Does GRI have your approval to enter the well and conduct logging 10f2 6/22/001:14 PM [F~d: Hotlston #22] - - PERMIT TO DRILL # 200-' . > operations on June 26? No work will occur without your approval. > A. GRI now has all of the AOGCC approvals necessary to do the logging > operations on June 26, 2000 as proposed above. > > Regarding the operation shut-down, because of the infromationa already > submitted, we agree that a 10-404 report is not necessary. > > Sincerely, Blair Wondzel1, 6/22/00 > 20f2 6/22/00 1: 14 PM Houston #22 , . Subject: Houston #22 Date: Thu, 22 Jun 200012:46:28 -0800 From: Blair W ondzell <blair _ wondzell@admin.state.ak.us> Organization: State of Alaska, Dept of Admin, Oil & Gas To: David Johnston <dwjohnston@micronet.net> CC: Robert Crandall <bob _ crandall@admin.state.ak.us>, Dan Seamount <Dan _ Seamount@admin.state.ak.us> "'Z eo .. 04 fa GRI - David Johnston: Below we have provided answers to all of you questions. Please keep us posted on the logging operation since we might witness it. Are you planning on the morning or afternoon? If the date or time changes, please advise, my phone number is work 793-1226, home 345-5609. GRI is planning on entering the Houston #22 well to conduct logging operations. Schlumberger will do the logging. The work will occur on June 26 and will last less than a day. Do you require any additional information. A. Are you planning to do the logging in the morning of afternoon? Bob Crandall said that he or Steve might come up. The sundry approval for operation shut down stated a written notice was required when operation began again. Is this e-mail sufficient? A. Yes. Technically, this is not an operation start-up. After logging operations, the well will be secured and operations shut down again pending evaluation of the logs and a final decision on whether to complete, abandon, or deepen the well. Should I submit another request for operation shut down following logging operations? Should you also desire, I can file a 10-404 as well. A. No, another operation shut down is not warranted nor is another 10-404. (We do not consider logging an operation start-up.) Does GRI have your approval to enter the well and conduct logging operations on June 26? No work will occur without your approval. A. GRI now has all of the AOGCC approvals necessary to do the logging operations on June 26, 2000 as proposed above. Regarding the operation shut-down, because of the infromationa already submitted, we agree that a 10-404 report is not necessary. Sincerely, Blair Wondzell, 6/22/00 10fl 6/22/0012:46 PM .. ~~~~E , ~~~~~~!Æ TONY KNOWLES, GOVERNOR ALASKA OIL AlU) GAS CONSERVATION COJDIISSION I i i I 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 9950 1-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 May 23,2000 GRI Inc. Ms. Jennifer Coughlin- Agent Preston, Gates, and Ellis, LLP 420 L Street, Ste 400 f\nchorage, AJ( 99501 Dear Ms. Coughlin: We wish to clarify recent correspondence from Mr. Blair Wondzell (of the Commission staff) to Mr. David Johnston (GRI's designated contact for the Houston #22 Well) dated May 12,2000. The e-mail titled "Notice of Violation" is not to be considered a notice of violation or enforcement under 20 AAC 25.535. The purpose of the e-mail was to communicate Mr. Wondzell's fiustration at being unable to witness the operation of drilling equipment with which the Commission has limited practical experience. Also, the Commission wishes to alert you of some compliance issues, which should be fairly easy to address. Houston #22 Permit to Drill GRI made a number of special requests with respect to the Application for Permit to Drill the Houston #22 Well. Please note that this was not a routine application for a permit to drill : · GRI's proposed location requires a spacing exception based on close proximity to a change of lease ownership. This was stated on the approval letter attached to the permit to drill. · GRI requested a waiver of essentially all well-control requirements (including waivers for blowout prevention equipment, diverter, and drilling fluid). · GRI's operations involved a drilling technique that is unusual for gas exploitation in Alaska. · GRI's drilling contractor was unknown to the Commission. · GRI requested expedited review and emphasized to the Commission that drilling operations must begin before March 31, 2000 in order to hold the lease. GRI's application received immediate and prioritized attention by numerous members of the Commission. We provided specialized assistance to Mr. Johnston including advice on properly locating the well on the lease, assessing the potential for shallow gas hazards, Jennifer Coughlin GRI, Inc. I 2 . May 23, 2000 and ensuring safe operations. The permit to drill was approved within the requested time frame, enabling the drilling of the well, which may have preserved GRI's lease. In light of the unusual nature of the Houston #22 operation, Mr. Wondzell requested that he be notified in sufficient time to witness initiation of drilling operations. This request was clearly made in most of the meetings with Mr. Johnston and on the approval letter for the permit to drill. Perhaps the approval letter should have been more specific concerning the procedures for contacting the Commission. Nonetheless, in our experience, all other operators understand that they are to contact the senior petroleum engineer (Mr. Wondzell) or one of his inspectors regarding drilling matters. A possible solution to GRI's and the Commission's current "miscommunication" would be to formally specify dates, times, contact persons, and other conditions in the approval of a GRI application to the Commission. However, we are hesitant to do this because of resulting encumbrances on the efficiencies of both GRI and the Commission. We are in receipt of a letter from Mr. Johnston (attached). In this letter, he alludes to his long experience with the Commission. His experience should have sharpened his awareness of the intent ofMr. Wondzell's requests (to witness the operation) and the Commission's stipulations in the approval letter. For example, informally stating that drilling may commence within the "next 24 to 48 hours" during a conversation with a Commission staff member who is not responsible for drilling operations does not constitute a proper notice of commencement of drilling. Also of concern is a statement in Mr. Johnston's letter insinuating that Mr. Wondzell practiced unprofessional conduct by stating "I suspect that if I did not have a prior relationship with the Commission, Blair (Mr. Wondzell) would not be taking this aggressive stance." The Commission would like to emphasize that Mr. Wondzell has no personal agenda in this matter. Ifhe had, he could have held up the evaluation and approval process. In reality, Mr. W ondzell strongly influenced the staff and the commissioners to evaluate and approve the permit to drill ensuring that the well was spud on time. Compliance Issues GRI is currently out of compliance with three Commission regulations regarding the Houston #22 Well: · Application for spacing exception (20 AAC 25.055). The regulations have specific and clear requirements. · Description ofGRI's plans to evaluate (well logs) (20 MC 25.071) and complete the well (20 AAC 25.072). Sundry notices are required whenever well operations are suspended and re-started (Forms 10-403 and 10-404). Jennifer Coughlin GR!, Inc. I 3 . May 23, 2000 Compliance with these regulations is required before testing the Houston #22 and also to classify it as a gas well. Summarv The Commission is very interested in the development of coal bed methane and is aware and appreciative of the huge potential benefit to the State of Alaska if GR!' s project is successful. It is, however, a new technology to Alaska, and we must proceed with caution. The regulations governing oil and gas operations in Alaska protect health, safety, the environment, and correlative rights while minimizing waste. Commission conditions on oil and gas operations must be treated in a professional, businesslike manner, aside trom personal agenda. As stated above, it is not our intent to invoke the violation section of our regulation 20 AAC 25.535, but to solicit your help and cooperation in the conduct of our mutual business. We welcome your suggestions in making this process beneficial to both parties. Sincerely, Daniel T. Séamount, Jr. Commissioner Attachment (1) cc: Robert Christenson - (w/out attachment) Cammy Oechsli- Taylor - (w/out attachment) Blair Wondzell - (w/out attachment) Robert Crandall - (w/out attachment) David Johnston - (w/out attachment) David W. ]OhnstoJ 320~;)iE;~:;~~ Oil and Gas Conservation and Environmental Assessment, Regulatory Compliance, and Permit Acquisition May 15,2000 Robert N. Christenson Camille Oechsli Taylor Daniel T. Seamont, Jr. Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 9950 I ·,Ù 16 200Ct ;~~ Dear Bob, Cammy, & Dan, Does Blair Wondzell's "notice of violation", e-mail dated May 12, 2000, represent the official position of the Commission or is he acting independently without commissioner knowledge? I admire Blair's attention to detail in recounting the sequence of events from the guest sign-in sheets. However, the summary does not reflect my visit to the Commission on March 29. Because I did not go beyond the front desk, I did not sign nor was I requested to sign the visitor sheet. I was there to deliver an Application for Sundry Approvals for the change of well control fluid (see confirmation date stamp-on the 10-403). At that time, I asked to speak to Bob Crandall and he was called to the front desk. I stressed to him that I was providing official notice of our intent to spud within the next 24 to 48 hours. I believe Lori or Shelley may have been present in the reception area when I gave notice to Bob. Contrary to Blair's claims, my notice was clearly articulated and reflected the realization that drilling operations would commence by our deadline. Commencing drilling operations by the end ofthe day on Friday, March 31, was critical- it was necessary to save the lease. This information was stated in the cover letter to the Permit to Drill application, and repeatedly stressed by me to AOGCC staff, including Blair. Had we waited until "sometime during the weekend" as Blair alludes, GRI's right to drill on that lease would have terminated and the well could not have been drilled. The Permit Approval letter states "You must provide notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation." The letter does not specify that notice must be given directly to Blair nor does it state that an exact time for spud must be given. As the permit did not state a specific person or position to be informed, I gave notice to Bob because I viewed him as the person taking lead on this permit. I know Bob to by a very reliable, conscientious employee. I was confident that by informing him, I was giving proper notice and that the information would be passed on to the rest of the Commission, including Blair. From my own experience with the Commission, I know that notice is not limited to one person nor to an exact time when the bit would turn. During my tenure as commissioner, I took calls concerning commencement of drilling, and in turn passed that information on to staff. Has the Commission's notification procedure recently changed or is Blair establishing a procedure unique to this situation? According to the requirements of the permit, I gave proper notice of commencement of drilling. Failure of the staff to communicate between themselves should not constitute a violation I . by the operator. I suspect that if! did not have a prior relationship with the Commission, Blair would not be taking this aggressive stance. I request that the commissioners clarifY the official position of the Commission in this matter. Does the Commission concur with Blair's belief that a violation has occurred or is he acting without your authorization? I do not take this issue lightly; it is a serious matter that can reflect negatively on my reputation and affect my ability to earn a living. c David Jo~__ cc: Jennifer Coughlin, Preston, Gates and Ellis, LLP Blair Wondzell, AOGCC Bob Crandall, AOGCC Attachment [',:\V 1 6 200a ~~&~E I: &~~~~& ";';·."1>"~Ì!'.~~~;~:.c':'~~~~~~~"'·:'7:~r~·"~7;;_'~¡:"!:iSr;-;!::~:'~ CERTIFJED MAIL P 460 038 297 RETURN RECEIPT REQUESTED MAY 052000 !COMM ONY KNOWLES, /~NOR ·COMM SR RES ENG RES ENG 550 WEST 7TH A VENUE§~NG8M ANCHORAGE, ALAstq!99Bò1-3560 PHONE: (907) 269-884t&JRO 'iiF~X: (907) 269-893¿ßR GEOl U rºl -.,.... .-. G't' j,t,'·~T ::.::..::~ "'"".."::... M~~;¡~ ~{ ~ , .P<+- 6! DEPARTMENT OF NATURAL RESOURCES s NOTICE FILE GRI Inc. Attn: John Teich, Pres. 4900 Sportsman Drive Anchorage, AK 99502-4169 Oil & Gas Lease ADL 381134 NÇJ-n:.' £{0'3 M: Jao -( (3 Æ,yK)"eó. 51,fc:o PrD - '2. 00 ~,,~ a DRIlLING OPERATIONS SHUT DOWN DEADLINE FOR CONTINUED OR NEW DRIlLING OPERATIONS The State of Alaska issued oil and gas lease ADL 381134 effective April 1, 1993, with a seven-year primary term. Drilling of the Houston #22 well commenced prior to the end of the lease's primary term. By decision dated April 7, 2000, the director extended the lease term under paragraph 4( c)( 1) of the lease, AS 38.05.180(m) and 11 AAC 83.125 "until 90 days after cessation of that drilling." In that decision, the division requested that you please inform the division within fifteen (15) days of any changes in lease operations which would have an effect on the term of the lease. David Johnston met with division staff on April 25, 2000. He informed the division that drilling operations ceased down on April 18, 2000, and later provided the division with a copy of the Application for Sundry Approvals submitted to AOGCC on April 24, 2000. ADL 381134 will expire at 11:59 p.m. on July 17,2000, unless other action is taken which would extend the lease under its terms. At the meeting on April 25, 2000, Mr. Johnston asked division staff if the spudding of a second well would extend the lease under its terms. Following consultation with the Attorney General's office, the division has determined that the spudding of a second well before July 17, 2000 will extend the lease under paragraph 4(c)(1) of the lease, AS 38.ú5.180(m) and 11 AAC 83.125. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans. " : ,~ , . ) ¡ ~ . í':' ',". I . . I ~ ;.¡A , ... I a 05/0312000 1134 Drilling Shutdown Notice.doc Page 2 of2 The division still requires that you inform the division within fifteen (15) days of any changes in lease operations which would have an effect on the term of the lease. Those changes/conditions are listed in paragraph 4 of the lease. These actions have now been included and/or updated in the records of the department. If you have any questions concerning this notice, please call me at (907) 269-8810. Pirtle Bates, Jr. Natural Resource Officer II c-~~ CC: AOGCC David Johnston Matt Rader PBJ/pbj/381134 Drilling Shutdown Notice.doc . .. Re: Weekly reports, Houston 22 . e Subject: Re: Weekly reports, Houston 22 Date: Fri, 28 Apr 2000 18:59:03 -0800 From: "D. W. Johnston" <dwjohnston@micronet.net> To: "Blair Wondzell" <blair_wondzell@admin.state.ak.us> CC: "bob crandall" <bob_crandall@admin.state.ak.us>, "Camille Oechsli" <Cammy_Oechsli@admin.state.ak.us>, "Robert Christenson" <robert _ christenson@admin.state.ak. us> , "Dan Seamount" <dan _ seamount@admin.state.ak.us> Blair, (J) To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave ----- Original Message ----- From: "Blair Wondzell" <blair wondzell@admin.state.ak.us> To: "D. W. Johnston" <dwjohnston®micronet.net> Sent: Friday, April 28, 2000 10:22 AM Subject: Re: Weekly reports, Houston 22 (]) David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. > > > > > > > > > > "D. W. Johnston" wrote: > > > Blair, This is what I have sent to Bob Crandall: Week 1: > > ~ March 30 --MIRU, drive conductor casing 14 feet. > > > > > > > > > > > > > > > > > > > > April 3--Drill to 443 feet. > > > > April 4--Drilled to TD at 515 feet, pull dril.ling assembly out of > > hole. > > > > April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, > > unable to get casing to bottom, formation swelling, pull casing out of (j) April 1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pullout of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pullout of hole, pick up drilling assembly and drill collars, reenter hole and drill open hole below conductor casing to 123 feet. 10f2 51101008:16 AM .... ~ Ré: Weekly reports, Houston 22 . e > > hole. > > > > Week 2: > > > > April 6--Pick up hole opener, go in hole and ream hole. > > > > April 8-12--Run casing into hole while reaming, set casing at 511 > > feet. Pull drill pipe and reaming tool, wireline parts while > > extracting drill pipe and reamer, lose 220 feet of drill pipe down > > hole, pick up overshot, return in hole, commence fishing operations. > > > > Week 3: > > > > April 13-Recover 220 feet of drill pipe. MIRU cementing equipment > > > > April 14-Circulate hole with water until clean. Weld cement head to > > casing, begin pumping cement, pump 206 sacks while reciprocating > > casing, good returns to surface, hold pressure on casing while cement > > sets up. > > > > April 15-Cement falls back approximately 20-30 feet, perform top job > > to bring cement back to surface. > > > > April 17-18-Maintain pressure on casing, demob cement equipment, begin > > demob of drilling equipment, drill pipe, casing, etc. Road becomes > > impassible on April 18. Drill rig and water system remain onsite. > > > > Dave > > > > I recommend that AOGCC set up an agency e-mail mailbox, with a > > forwarding macro for individual staff so that messages will be sure to > > get to everyone. > 20f2 5/101008:16 AM [Fwd: Weekly reports, Houston 22] . . Subject: [Fwd: Weekly reports, Houston 22] Date: Wed, 10 May 2000 13:01: 14 -0800 From: Robert Crandall <Bob _ Crandall@admin.state.ak.us> Organization: DOA-AOGCC To: "W ondzell, Blair" <blair _ wondzell@admin.state.ak.us> Subject: Re: Weekly reports, Houston 22 Date: Fri, 28 Apr 2000 18:59:03 -0800 From: "D. W. Johnston" <dwjohnston@micronet.net> To: "Blair Wondzell" <blair_wondzell@admin.state.ak.us> CC: "bob crandall" <bob_crandall@admin.state.ak.us> , "Camille Oechsli" <Cammy_Oechsli@admin.state.ak.us>, "Robert Christenson" <robert_christenson@admin.state.ak.us> , "Dan Seamount" <dan _ seamount@admin.state.ak.us> Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave ----- Original Message ----- From: "Blair Wondzell" <blair wondzell@admin.state.ak.us> To: "D_ W. Johnston" <dwjohnston@micronet.net> Sent: Friday, April 28, 2000 10:22 AM Subject: Re: Weekly reports, Houston 22 > David, > This is to let you know that I received your e-mail. I'm disturbed that > we were not given proper notice of the spud time, particularly since you > knew that Tom and I wanted to witness the drilling operation. I am > working on a report laying out the sequence of events, when completed, > I'll see you get a copy. > Sincerely, Blair Wondzell, 4/28/00. > > > "D. W. Johnston" wrote: > > > Blair, This is what I have sent to Bob Crandall: Week 1: > > > > March 30 --MIRU, drive conductor casing 14 feet. > > > > April 1-2--Conductor casing driven until refusal at 76 feet into > > competent siltstone, pullout of hole, pick up tool to mill out casing > > shoe, begin milling shoe. > > lof2 5/22/004:01 PM [Fwd: Weekly reports, Houston 22] . . > > April 2--Complete milling shoe, pullout of hole, pick up drilling > > assembly and drill collars, reenter hole and drill open hole below > > conductor casing to 123 feet. > > > > April 3--Drill to 443 feet. > > > > April 4--Drilled to TD at 515 feet, pull drilling assembly out of > > hole. > > > > April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, > > unable to get casing to bottom, formation swelling, pull casing out of > > hole. > > > > Week 2: > > > > April 6--Pick up hole opener, go in hole and ream hole. > > > > April 8-l2--Run casing into hole while reaming, set casing at 511 > > feet. Pull drill pipe and reaming tool, wireline parts while > > extracting drill pipe and reamer, lose 220 feet of drill pipe down > > hole, pick up overshot, return in hole, commence fishing operations. > > > > Week 3: > > > > April 13-Recover 220 feet of drill pipe. MIRU cementing equipment > > > > April 14-Circulate hole with water until clean. Weld cement head to > > casing, begin pumping cement, pump 206 sacks while reciprocating > > casing, good returns to surface, hold pressure on casing while cement > > sets up. > > > > April 15-Cement falls back approximately 20-30 feet, perform top job > > to bring cement back to surface. > > > > April 17-l8-Maintain pressure on casing, demob cement equipment, begin > > demob of drilling equipment, drill pipe, casing, etc. Road becomes > > impassible on April 18. Drill rig and water system remain onsite. > > > > Dave > > > > I recommend that AOGCC set up an agency e-mail mailbox, with a > > forwarding macro for individual staff so that messages will be sure to > > get to everyone. > 20f2 5/22/004:01 PM - wt:kly reports, Houston 22 e e Subject: Weekly reports, Houston 22 Date: Mon, 24 Apr 200015:40:55 -0800 From: "D. W. Johnston" <dwjohnston@micronet.net> To: <blair _ wondzell@admin.state.ak.us> Blair, This is what I have sent to Bob Crandall: Week 1: March 30 --MIRV, drive conductor casing 14 feet. Apri11-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. Apri12--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open hole below conductor casing to 123 feet. April 3--Drill to 443 feet. Apri14--Drilled to TD at 515 feet, pull drilling assembly out of hole. April5--Pick up casing, run and weld 320 feet 85/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: Apri16--Pick up hole opener, go in hole and ream hole. April 8-12--Run casing into hole while reaming, set casing at 511 feet. Pull drill pipe and reaming tool, wire line parts while extracting drill pipe and reamer, lose 220 feet of drill pipe down hole, pick up overshot, return in hole, commence fishing operations. Week 3: April 13-Recover 220 feet of drill pipe. MIRV cementing equipment April 14-Circulate hole with water until clean. Weld cement head to casing, begin pumping cement, pump 206 sacks while reciprocating casing, good returns to surface, hold pressure on casing while cement sets up. April 15-Cement falls back approximately 20-30 feet, perform top job to bring cement back to surface. April 17 -18-Maintain pressure on casing, demob cement equipment, begin demob of drilling equipment, drill pipe, casing, etc. Road becomes impassible on April 18. Drill rig and water system remain onsite. 10f2 5/11100 1 :26 PM ~ Wéekly reports, Houston 22 e e Dave I recommend that AOGCC set up an agency e-mail mailbox, with a forwarding macro for individual staff so that messages will be sure to get to everyone. 20f2 5/11/00 1 :26 PM J ~~, , I -~-~._-~._--.--.- , STATE OF ALASKA . ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS if3 C-ò 1 Type of Request: A.bandon _ Suspend _ OþeratiOnshutdown X Re·enter suspended wefl _ Alter casing _ Repair well _ Plugging _ Time extenSion _ Stimulate _ Change approved program _ Pull tubtng _ Variance _ Perforate _ Other _ 2 Name of Operator 5. Type of Well: 6. Datum elevation (OF or KB) GRI, Inc. Devetopment - 350' GL feet Exploratory JL 3. Address StratigraphiC _ 7. Unit or Property name 420 L Street, Suite 400, Anchorage, AK 99501 Servlce_ 4 location of well at surface 8 Well number 3460' FSL, 730' FWL, Sec.9, T18N, R9W, SM HoustOn #122. At top of productive interval 9, Permit number ~·042 At eHectíve depth 10. API number 50- 009-20018-00 At total depth 11. F¡eld/Pool Wildcat 12, Present well condition summary Total depth: measured true vertical Casing Structural Conductor Surface Intérmédiatè Production liner Perforation depth: measured Length 515 feet Plugs (measured) 515 feet 511 feet Junk (measured) 511 feet Size Cemented Measured depth True vertical dePth 10314 in Driven 76 Feet 8 5/8 in 206 sk 511 Feet Effective depth: measured true vertical 76 Feet 511 Feet RECEIVED true vertical ,": I::; 2 4 2000 Tubing (SIze. grade. ana measured depth) ORIGINAL Alaska Oil & Gas Cons. Commission Anchorage Packers and SSSV (type and measured depth) 13 Attachments Description summary of proposal .x.. Detailed operations program _ BOP sketch _ 14 Estimated date for commencing operation 15. Status of well classification as: 16, If proposal was verbally approved Oil_ Gas X- Suspended _ Name of approver Date approved Service :g:'7c::atreg~r¿;~ry;-~:~í G~l l(1c Date Lf/'dlfIOO ! ~ \ :oHCOM.šio~ U~LY · Condi'J, app:fi1" Comm;ssioo "',. ...... may....... I Approval No. -::J /1n J I ~ Plug integrity _ BOP Test_ Locationclearance_ . .¡, ~UJ- I r MechanícallntegrityTest _ Subsequentformrequired 10-~ V,..m-"" C;f.c,...f'-V> ptt?h.'"f..ttL.:' ÆH...~ t:føu.V (}J.~~(( Approved by order of the Commission Form 1Q-403 Rev 06115188 ORIGINAL SIGNED BY Robert N. Christenson o~i Commissioner ðG :<,,-10 Ò rV\ ,"01~ Date 5- 1"'- 0 0 SUBMIT IN TRIPLICATE l , . , . tHH, Inc. requests that an operation shut down be approved for the Houston #22 well. Break up conditions has made the access road to the well site impassible. The well currently has 8 5/8 inch casing cemented to TD, with a cement head welded on the casing at the surface. The drill rig remains on location, but other sundry equipment has been removed. Once the road dries out, GRI plans to conduct further evaluation work on the well. This may include logging and testing operations. GRI also plans on grading the road to repair damage done during drilling operations. GRI anticipates returning to well operations within 60 days per 20 AAC 25.072(b). Weekly report . e Subject: Weekly report Date: Wed, 12 Apr 2000 21:05:14 -0800 From: "D.W. Johnston" <dave johnston@micronet.net> To: <bob _ crandall@admin.state.ak.us> Bob, Week 1: March 30 --MIRV, drive conductor casing 14 feet.. Aprill-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open hole below conductor casing to 123 feet.. April 3--Drill to 443 feet. Apri14--Drilled to TD at 515 feet, pull drilling assembly out of hole. April 5--Pick up casing, run and weld 320 feet 8 5/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: April 6--Pick up hole opener, go in hole and ream hole. April 8-12--Run casing into hole while reaming, set casing at 511 feet. Pull drill pipe and reaming tool, wireline parts while extracting drill pipe and reamer, lose 220 feet of drill pipe down hole, pick up overshot, return in hole, commence fishing operations. Dave 1 of 1 511010011:55 AM . . NOTICE OF VIOLATION PERMIT TO DRILL APPROVAL LETTER GRI's Well Houston #22. PTD 200-042 Violation. The Houston #22 Permit To Drill (PTD) approval letter to Jennifer M. Coughlin, Agent for GRI, Inc, signed March 24,2000, by Commissioner Daniel T. Seamount, contained this provision: "You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433." Notice of the anticipated spud date and time was never given. The commission was not notified of the actual spud date and time while the well was being drilled. Weekly reports were submitted after actual drilling operations were completed. The Commission was not given the opportunity to observe the actual drilling operations. SeQuence of events: From "Guest" sign in sheet DATE NAME TO SEE PURPOSE . 2/25/00 David Johnston Tom M. PTD conditions for Houston #22 well. ~ d.Cè \"-'''--' "- 3/8/00 David Johnston Tom M. Need fordiverter & threaded casing.,,·,,~1u\ \Gct¿h¡~-<. 3/10/00 David Johnston Howard Location survey method. ~.~ ':'"3 '-:..;" I;::-~ \..- 3/13/00 David Johnston Tom PTD conditions - diverter & casing. " 3/14/00 David Johnston Tom PTD conditions - diverter & casing. 3/20/00 David Johnston Bob Crandall Potential for shallow gas. 3/21/00 David Johnston Blair Wonclzell Blair requested this meeting with the 3/21/00 Pete Tester Blair Wonclzell drilling contractor so that he, Tom, Bob, and Dan could obtain information about the drilling contractor, his drilling rig, drilling techniques, safety equipment, and experience in handling gas "at the surface". Blair said that we normally deal with 5000, 10,000, and 3000 psi surface pressure requirements and that it was difficult to realistically deal with a 300 psi surface pressure potential well. Blair stressed that he was not familiar with this type of drilling rig and operation and that he wanted to witness actual drilling operations on this well. 3/21/00 David Johnston Blair Drilling & esp., drill fluid requirements. 3/24/00 David Johnston Blair Wonctzell Drill permit requirements. 3/28/00 David Johnston B Wonctzell PTD requirements, "1" standby mud system. On 3/29/00 Blair Wondzell gave David Johnston verbal approval to change the mud system. This was part of the "APPLICATION FOR SUNDRY APPROVALS" request form - 10-403- dated 3/29/00 and approved by Commissioner Daniel 1. Seamount Dated 3-31-00. 5/2/00 Bob Crandall's best recollection is that on March 30 or 31, 2000 in a conversation with David Johnston in the reception area that David said "we might spud this weekend". Blair Wondzell did not know that the Houston #22 well had been spudded until April 25, 2000 when he saw David Johnston at the front desk. He asked David if the well had been spudded yet. David replied that the well was completed. Blair asked why notice was not given. David replied that he had notified Bob Crandall on the last Thursday or Friday of March that they would be spudding sometime that weekend. . . A comment "sometime this weekend" is not the same as a specific date and time of commencement. Additionally, Bob Crandall was not the person primarily interested in the date and time and David Johnston should have known that. There are at least three (3) reasons that Blair should have been notified of the spud date and time. These reasons are: 1. During the 21 March meeting he specifically asked to be notified when drilling started so that he, and probably others, could observe the drilling operations. 2. The PTD letter required pre notification of the spudding so that a representative of the Commission could witness the qperation; as the Senior Petroleum Engineer for operations, Blair should have been the one notified. 3. As the Petroleum Inspector Supervisor, Blair should have been notified. What can be done to correct this subject violatign - nothing. What actions can be taken in the future -for GRI operations, the Commission can and probably will specify that approval to spud a well will be contingent on a representative of the Commission inspecting the rig and ancillary equipment immediately prior to spudding and certifying that it is fit for purpose and ready to drill. APPENDIX Recent E-mail Exchanges - Blair Wondzell/D.W. Johnston 1. Johnston to Wondzell - 24 Apr 2000 Blair, This is what I have sent to Bob Crandall Week 1: March 30 -MIRU, drive conductor casing 14 feet. April1-2--Conductor casing driven until refusal at 76 feet into competent siltstone, pull out of hole, pick up tool to mill out casing shoe, begin milling shoe. April 2--Complete milling shoe, pull out of hole, pick up drilling assembly and drill collars, reenter hole and drill open holebelow conductor casing to 123 feet. April 3-Drill to 443 feet. April 4--Drilled to TO at 515 feet, pull drilling assembly out of hole. April 5-Pick up casing, run and weld 320 feet 8 5/8 inch casing, unable to get casing to bottom, formation swelling, pull casing out of hole. Week 2: (NOTE: Summaries for weeks 2 & 3 are not printed here because drilling operations were completed on April 4 - total depth has been reached). 2. Wondzell to Johnston - April 28. 2000 David, This is to let you know that I received your e-mail. I'm disturbed that we were not given proper notice of the spud time, particularly since you . . knew that Tom and I wanted to witness the drilling operation. I am working on a report laying out the sequence of events, when completed, I'll see you get a copy. Sincerely, Blair Wondzell, 4/28/00. 3. Johnston to Wondzell - 28 Apr 2000 Blair, To repeat our earlier conversation, I told Bob Crandall directly at least 24 hours in advance that we were going to spud. I assume that constitutes proper notice. Bob appeared to me to be taking the lead on this permit, so that was who I dealt with. I thought Bob was the right person for the notice, and I assumed he would inform you and others. He certainly communicated other aspects of this permit to you and Tom. I know that you and he work closely on these things. Bottomline, I did not intentionally by-pass you. I hope this doesn't become a big issue. Dave H22-ptd-viol -~-~--_.._- ( .~ . STATE OF AlASKA . ALAt: . OIL AND GAS CONSERVATION COMMISSIO APPLICATION FOR SUNDRY APPRÒVALS e 6J 0..; J..h// .rOc 1. Type of Request: Abandoll _ Suspend _ Operation shutdown _ Re-enter suspende( well _ Alter casing _ Repall well _ Plugging _ . Time extension _ Stimulate_ Change approved program .x- Pull tubing _ Vanance _ Perlorate _ Othef _ 2 Name of Operator 5. Type of Well: 6_ Datum elevation (OF or KB) GAl, Inc. DeIIeIopment - 350' GL Exploratory x.. 3, Address $HatigraphlC _ 420 L Street, Suite 400, Anchorage, AK 99501 Servlce_ 4. location of well at surface 3460' FSL, 730' FWL, Sec.9, T18N, A9W, SM AI top of productive interval feet 7. Unit Of Property name At effective depth 8. Well number Houston #22 9, Permit number 200-042 10. API number 50-- 009-20018-00 At total depth 11. Fleld/Poot Wildcat 12, Present well condition summary Total depth measured true vertical feet feet Plugs (measured) ORIGINAL Effective depth measured true vertical feet feet Junk (measured) Casing Structural Conductor Surface Intermediate Productloo Length Size Cemented Measured depth True vertiCal depth Liner Perforation depth' measured true verltcal RECEIVED MAR 2 9 2000 Alaska Oil & Gas Coos. Commission Anchorage TUbing (size, grade. ana measured depth) PacketS and SSSV (type and measured depth) 13. Attachments Description summary of proposal .x.. Detailed operations program _ BOP sketch _ 14, Estimated date for commencing operation March 30, 2000 ~ 16, If proposal was verbally approved , ,Q,;-'? o~ ,I. j. ""I ~ 03/1' 00 Name of approver Ù 4.~jtt Wø/ol tl:t u... Date approved Service :g:"by~th~l~ ,eg~k~oo:m:"::;;d~r G ~ I t I nC. ~cOMMfÏSION U:st:ðNLY Cond" s of approval: 0 ty Commission so representative may witness Plug integrity _ BOP Test _ \.ocationclearance_ Mechanical Integrity Test _ Subsequent form required 10- 15. Status of well classification as: Oil_ Gas x... Suspended _ Date 3/;) rl aD I Approval No~ '1 ro... ð 7 ~ Commissioner Date~/ÞO SUBMIT IN TRIPLICATE ø.Ò (j09~ ~~~~:'~.(\e~oo y . . . . I GRI seeks Commission approval to change the well control fluid on the Houston 22 well. Rather than a salt/water fluid, GRI propose having on site sufficient Quick Gel and Barite to mix a 9.4 lb/gal fluid, appropriate mud and fresh water tanks, and mixing and transfer pumps to handle the fluid. The system will be supplied by Arctic Mining and Oil Tool, who will have experienced personnel standing-by to handle pumping operations should flowing conditions be encountered. , - GRI: HOUSTON #22 COALBED METHANE WELL ACTIONS TAKEN S.F. DAVIES My notes in my work log are incomplete as I processed the application on the afternoon of Friday, March 24, 2000, just prior to my vacation. However, I have been able to reconstruct my involvement on this permit from memory and from information within the well file. On March 24,2000, AOGCC received a permit to drill application for GRI's Houston #22 well, which lies in lease ADL 381184. I reviewed the application shortly after lunch on March 24th. While routinely checking the lease number on Alaska Map Services' "Cook Inlet Basin Oil and Gas Lease Ownership Map" that is posted in AOGCC's corridor, I noted several squares within ADL 381184 that are not annotated. One of these, in the north central portion of the lease, appeared to have potential impact on the proposed location for the Houston #22 well. I researched this unannotated block further, checking DNR's http://www.dnr.state.ak.us/landrecords website for an updated lease map. I found the appropriate lease map for TI8N, R3W on the website, and noted that the unannotated block is "Designated Mental Health Trust Land," according to the map legend. I consulted with Cammy Oechsli about this potential problem with the lease, and she suggested that I ask Steve McMains to run a lease abstract. I received an abstract from Steve, and noted from it that the unannotated block is indeed not included in the lease. I telephoned DNR for confirmation, and spoke to a female staff member (Judy or Carol, I didn't record whom I spoke to). She stated that the unannotated square is a "hole in the lease" (her terminology) that is owned by the Mental Health Trust, not GRI. I plotted the proposed location for Houston #22, and noted that it was only about 884 feet from the southeast comer of the boundary where lease ownership changes from Lapp Resources to the Mental Health Trust (see the sketch map on the lease abstract printout, near the back of well file 200-042). Regulation 20 AAC 25.055 (a) (2) states "for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line..." Because of this, I answered "N" to question 5 of the Well Permit Check List that asks if the proposed well is located a proper distance from the drilling unit boundary, and "N" to question 9, which asks if the Operator is the only affected party. I discussed my concerns with Cammy and Dan Seamount, and then phoned Jennifer Coughlin of GRI to ask if she was aware of the Mental Health Trust "hole in the lease." She was not, and said she would phone David Johnston. Shortly thereafter, David Johnston telephoned me and confirmed that he was not aware of the Mental Health Trust land within the lease. I noted that GRI was within 1,500 feet of a change of ownership boundary. David stated that the proposed location was within a clearing, and that he might be able to move it somewhat, but not enough to achieve 1,500 feet distance from the ownership boundary. I passed David's comments to Cammy and Dan, jointly. I asked Cammy's and Dan's opinion as to as to how to properly answer questions 11, 12, and 13 on the checklist in this case, and how to proceed, as time was growing short (the spud date stated on the application was 3/28/00). My understanding from the conversation was that a conservation order would be needed in order to drill and test the well as proposed. Hence, I circled "N" in answer to question 11. However, Cammy's, Dan's and my literal reading of the regulations indicated that GRI could drill the well, but they could not test or produce the well without acquiring an exception from AOGCC. Based on our discussion, I noted in the comments column that the "Well can be approved to drill, but not to test &/or produce." With their concurrence, I phoned David Johnston, and relayed our joint opinion, and the necessity for an exception. I also offered our opinion that he might consider being at the AOGCC first thing on Monday morning with a new drilling permit application having an , . alternate, proposed well location that would not require an exception. I subsequently left on vacation, and had no further dealings with GRI, Ms. Coughlin, Mr. Johnston, the Houston #22 well, or any info ation concerning Houston #22. - . . ... . GRI, Inc. 420L Street. Suite 400 Anchorage, AK 99501 March 22. 2000 Robert N. Christenson. P .E. Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska ,99501 Re: Houston #22 Dear Mr. Christenson: This letter is to inform you that OR!, Inc. has hired Mr. David W. Johnston to serve as its point of contact for the Houston #22 well. Mr. Johnston wiU supervise the drilling of the well and is prepared to work closely with your staff to ensure that a)) AOOCC concerns are addressed. If you require additional information about the we)) or need to direct the actions of GRI, Inc. with regard to the Cowmission' s regulatory authority. please contact him at 907-345-2629. If you have any questions concerning the authority of Mr. Johnston to represent GRI, Inc.; please contact me at 831-234-2364. Sincerely, RECEIVED MAR 28 200& A1as\(a Oil & Gas Cons. Commission Anchorage ce. David W. Johnston æ0/2ØØ"d 6292S17£LØ61: :01 S8SS-6£17-1:£8 ~JI~3~1~WS:WO~j 9S:£1: ØØØ2-S2-~~W ~~fÆ~~ rmrfÆ~fÆ~~~fÆ . ALASIiA. OIL AlVD GAS CONSERVATION COMMISSION TONY KNOWLES, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 9950 1-3192 PHONE: (907) 279-1433 FAX: (907) 276·7542 Jennifer M. Coughlin Agent for GRI, Inc. GRI, Inc. 420 L Street Ste 400 Anchorage, AK 9950 I Re: Houston #22 GRI, Inc. Permit No: 200-042 Sur. Loc. 3460'FSL, 730'FWL, SEe. 09, TI8N, R03W, SM Btmhole Loc. 3460'FSL, 730'FWL, SEe. 09, TI8N, R03W, SM Dear Ms. Coughlin: Enclosed is the approved application for permit to drill the above referenced well. However, you are not authorized to open the wellbore to test or regular production until you have complied with the provisions of 20 AAC 25.055. The permit to drill does not exempt you from obtaining additional permits required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permitting determinations are made. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the Commission's internal use, You must provide sufficient notice (at least 24 hours before commencement of drilling) to the Commission so that a representative of the Commission may witness this operation. Notice may be given by contacting the Commission at 279-1433. Sincerely, ç¿ Daniel T. Seamount Commissioner BY ORDER OF THE COMMISSION DA TED this Z 1- .,L.t\ day of March, 2000 dlfÆnclosures cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. 1a. Type of work Drill X Re-Entry =: 2. Name of Operator GRI, Inc. 3. Address c/o Preston Gates and Ellis, LLP 420 L Str.. Ste 400, Anchor~e, AK 99501 4. Location of well at surface . 3460' FSL, 730 FWL, Sec. 9, T18N, R3W, SM At top of productive interval Same At total depth Same 12. Distance to nearest property line ¡ ,..A- 'l'ð.5 './A ~eet Rosetta #4 16. To be completed for deviated wells Kickoff depth feet Maximum hole angle 18. Casing program size Hole Casing 10 1/2" 8 5/8" . STATE OF ALASKA . ALASKA AND GAS CONSERVATION CO SSION PERMIT TO DRILL 20 AAC 25.005 Redrill =/1b. Type of well. Exploratory:X Stratigraphic Test 0 Development Oil 0 Deepen C Service Developement Gas c:: Single Zone L::; Multiple Zone 0 5. Datum Elevation (DF or KB) 10. Field and Pool 350' GL feet Wildcat 6. Property Designation ADL 381134 7. Unit or property Name D/;f 3/2%ö 13. Distance to nearest well 11. Type Bond lsee 20 MC 25.0251 Statewide 8. Well number Number Houston #22 K05880877 9. Approximate spud date Amount March 28, 2000 $200,000 14. Number of acres in property 15. Proposed depthíMD and TVD) 4948.73 650 feet 10600 feet 17. Anticipated pressure (see 20 !>.1Il; 25.035 íeK2)) o Ma.imum surface 322 psig At lotal depth rrVD) Setting Depth Top Bottom MD TVD MD TVD o 0 20 20 o 0 650 650' 325 pSig 10" Specifications Weight Grade Coupling Length 28# 20' 28.6# B Welded 650' Quantity of cement (include stage data) Driven 478 cf (25% excess) 19. To be completed for Redrill, Re-entry, and Deepên Operations. Present well condition summary Total depth: measured feet Plugs (measured) true vertical feet Effective depth: measured true vertical feet feet Junk (measured) ORIG\NAL MAR 24 2000 measured Alaska o¡¡ & Gas Cons. Commission true vertical A!'!çhorag& 20. Attachments Filing fee ŒJ Property plat Œ BOP Sketch C Diverter Sketch 0 Drilling program (X Drilling fluid program 0 Time vs depth plot 0 Refraction analysis 0 Seabed report 0 20 AAC 25.050 requirements 0 21. I hereby C.ertifY that the foregOing~iS true and correct to the best of my knowledge H'" . \. A .. Preston Gates and Ellis, LLP Signed A. .\"'\. Title Agent for GRI Date 3jJ.'1/co Commission Use Only Permit Nu ber , / I API number. I APprov. al date I See cover letter 2èCJ -6, 2- 50- roC; - 2CòJfj-{:)() d - ,;¡-I"'" CO for other requirements Conditions of approval Samples required ~ Yes 0 No Mud log required ~ Yes 0 No Hydrogen sulfide. measures 0 Yes ;g'No Directional survey required 0 Yes J,!No Required working pressure for BOPE 02M; 0 3M; 0 5M; 0 10M; 0 15M Nit- Other: l'l\~~ a ~tt.l by order of Approved Commissioner the commission Form 10-401 Rev. 12-1-85 Casing Structural Conductor Surface Intermediate Production Liner Perforation depth: Length Size Cemented Measured depth True Vertical depth RECEIVED Date ]/¿c¡/oo Submit In triplicate e . Houston # 22 Proposed Drilling Plan (per 20 AAC 25.005(c)(13» Site Preparation: 1) Move in snow removal equipment, clear site of snow (120' by 120'), berm site with snow. No clearing of vegetation or removal of overburden anticipated. Mobilization 1) Move in and rig up Driltech D40-K drill rig. Notify AOGCC at least 24 hours in advance of spud. 2) Drive lOW' conductor casing to 20 feet. Surface/Production Hole 1. Spud well and drill hole with 10 inch bit to TD at 650 feet. 2. Run 8 5/8 inch casing and cement to surface. a. Mix and pump 316 sx Class A cement (14 ppg, 1.512 ct7sx, 7.72 gal/sx) b. Drop top plug and displace. c. Wait 24 hours on cement. 3. Install flanged plate on surface casing. 4. Rig down and release rig. Logging 1. Rig up and run logs (either open hole or cased hole, depending on availability) as follows: · Gamma ray · Resistivity · Neutron · Density Completion: 1. Completion procedure to be determined after evaluation of well logs. e e Houston #22 Well Information (20 AAC 25.005(c)) The following information is intended to comply with the information requirements listed under 20 AAC 25.005(c). 1) Fee-Attached. 2) Plat-Attached 3) Blowout prevention equipment-GRI requests a waiver of blowout prevention equipment under 20 AAC 25.035(h). GRI proposes to drill a shallow well to about 650 feet to test coal for coalbed methane. The depth is only slightly deeper than wells routinely drilled for residential water. Because of the shallow nature of well, overpressure zones or well control problems are not anticipated. The Houston #1, #2 and #3 wells did not encounter any shallow gas or overpressure zones at this depth, however, the Houston core hole #1, drilled during 1951, encountered some flowing gas and brackish water at 473 feet, with a static pressure of about 15 psi. GRI proposes to have equipment and material on-site to rapidly mix and pump a 9.4lb/gal. well control fluid should flowing conditions be encountered (see drilling fluid system below. ) 4) Drilling Hazards A Dowhole pressure-Approximately 325 psi B Potential gas zone-No significant gas zones are expected to be encountered. C Potential hole problems--No significant hole problems are expected. 5) Formation integrity test-Not required, BOPE waiver requested. 6) Casing and cementing program: Conductor casing, 1 O~ inch, 28 lb/ft, driven to 20 feet Surface/production casing, 8 5/8 inch AI06 (seamless), Grade B, 28.5lb/ft, cemented to surface. Specifications: Collapse-1824 psi Burst-2616 psi Body yield-336 (1000 lbs) Maximum bottomhole pressure 325 psi (burst) Maximum pressure outside of casing 473 psi ( collapse) Welded joint-58,OOO lbs, yield strength is greater than yield strength of casmg. RECEIVED Cement-Class A cement slurry @ 14lbs/gal. MAR 2 t.¡- 2000 ¡·Jaska Oil & Gã$ Cons, Commjs3ion A"¢ht;'fage e e 1.512 cf/sx 7.72 gallons wtr/sack 316 sacks (25% excess) 2440 gallons wtr 7) Diverter system-GRI request waiver of diverter system under 20 MC 25.035(h). 8) Drilling Fluid system-GRI requests approval a waiver of the drilling fluid program under 20 MC 25.0330). GRI proposes to drill the well to TD using air/foam system, but will have available on-site 2,000 gallons of water and sufficient salt to mix a 9.4 lb/gal. well control fluid should flowing conditions be encountered in the well (741bs saltlbarrel water = 9.4lb/gal. fluid). Because of shallow nature of well, no shallow gas zones or well control problems are anticipated, although the Houston core hole number 1, drilled during 1951 in Section 21, encountered some flowing gas and brackish water at 473 feet, with a static pressure around 15 psi. 9) Depth of abnormally geo-pressured zone-None anticipated. 10) Seismic reflection analysis-GRl requests a waiver of this requirement under 20 MC 25.061(c). Because of shallow nature of well, no shallow gas zones are anticipated. Well information fÌom Houston #1, #2, and #3 did not encounter any shallow geohazards to the depth proposed for Houston #22 well. 11) N/ A 12) Bonding-GRl has a statewide bond in the amount of $200,000, number K05880877, Insurance Company ofN. America. 13) Drilling program-Attached 14) Disposal of cuttings-GRl plans to place all cuttings in a dumpster and haul to Houston landfill for disposal. GRl does not intend to request annular disposal for this welL e . I ~JIiäS r;;;;t I / ,/ ....., ~ Houston #22 Well Location: 3460' FSL, 730' FWL, Section 9 T18N, R3W, Seward Meridian State Plane Coordinates: 2801434.0, 528282.1 ~ State land \ ~L ('280.00') 61 °39'28.3", 149°48'48" STP: 2797989.0, 532831.7 '\ 61°39'28.3", 149°50'29.4" STP: 2797974.9, 527552.3 ~ ) .... ~b:1, \.. .C" ....~ g~ z:~ - 16 Ji'C' t,,8 Cø z.... -....... ".'1 JI~~ T ~ I ~ o ~ f:I'J ~ o ~ =+t:: N N N -¡ Conductor casing (lOYZ inch. driven to 20 feet) SurfacelProduction casing 8 5/8 inch, e- Houston #22 Proposed casing and cementing design .~¡ ¡~ :. .~ .... e Surface I Cement to surface I TD 650 feet I Not to scale , iAAR-15-QO 13: 15 FROM- - T-951 P 03/09 F-G3Z . linnneU tensile property requirements . ~-.- "' apedftcatIon "min. Yi!*I"f'IIR9Ø\ (psi) min. tensile stnInglh (pwI> ather' - A53 Grade A 30,000 48,000 Grade a 35,000 60,000 t A106 Grade A 30,000 48,000 st. - "I\> (Seamless) Grade B 35,000 60,000 Grade C 40,000 70,000 .Jlz.. u:>" ... '\'~c.~ A135 Grade A 30.000 48,000 (ERW) Grade 8 35,000 60,000 A2S2 Grade 1 30.000 50.000 Grade 2 35,000 60,000 Grade 3 45,000 66,000 A501 36,000 58.000 A795 API5L Grade A 30,000 . 48.000 Grade B 35,000 60,000 . X42 42,000 60.000 X46 46,000 63.000 X52 52.000 66.000 X56 56,000 71.000 XeD 60.000 75,000 (Range) API 5CT H40 40,000- 80,000 60,000 JS5 55.000- 80,000 75,000 K55 55,000- 80,000 95,000 NBO 80,000-110,000 100,000 L80 (Type 1) 80,000- 95,000 95.000 Hardness max. HAC 23 'Elongation req¡¡;remønts ..ary with grade. specimen Sile ana oríemation of test. . ./ " "'NlJ~'f~r"''''''''''-r'-r. 1'..-....-....?'\~~7"..-;....-.- ~ \,;...... MAR-1S-ûO 13: 15 FROM- e 11 p ûZlû9 F-63Z . Grinnell chemical composition (°/0) ." , aptICiftntiOO C Mn p S Si A53' Grade A .25 max. .95 max. .05 max. .06 max. Grade 8 .30 max. , .20 max. .05 max. ,06 max. A 106' 2 Grade A .25 max, .27- .93 .025 max. .025 max. ,10 min. - {Seamless) Grade B .30 max. .29-' .06 .025 max, .025 max. .1 0 min. - Grade C .35 max. .29-1.06 ,025 rnax. .025 max. .10 min. A135 Grade A .25 max. .95 max. .05 max· .06 m3J(. (ERW¡ Grade B .30 max. i .20 max. .05 max. .06 max. A252 GradeS " 2, .OS max. and 3 A501 .26 max. .04 max. .05 max. A795 Grade A .25 max. .95 max. .05 max. .06 max. Grade 8 .30 max. 1.20 max. .05 max. .06 max. [ERW/5eamless) (maxJmax.) API5L Grade A .21 1.22 .90max. .04 max. .05 max. (all non- Grade 8 .26/.27 1.1 5 max. .04 max. .05 max. 4 expanded) X42' .28/.29 1 .25 max. .04 max. .05 max. X46. X523 .30/.31 1.35 max. .04 max. .05 max. X56, X6Q3 .26/.26 , .35 max. .04 max. .05 max. API seT H40 .03 max. .03 max. J55 .03 max. .03 max. K55 .03 max. .03 max. N80 .03 max. .03 max. LSO (Type 1)" .43 max. 1.90 max. .03 max. .03 m3X. .45 max. 'Tn8 comÐirlat,on of Cu, NI. Cr. Mo and V conJerns snatl not exc6eO 1.00"10. :ror each reductiOn 01 .01 % belo..... tI1e speCif.ecl C maximum, an increase 01 .06"10 Mn ",!JOve tne specified maximum will De pet'!TlÎI1eO ùp to a maxim\,lm 01 1,35"10. 3¡:or graces X42~60. for eacl'l reQ\ÇtIQl'1 of .01 % belO¥lll'lG maximum C contern, an increase 01 .05% Mn above spec,f,$(! maximum 1$ aUQw8d up to 1.45% for graøes up to X52 and 10 '.60o/D for graQes higl'ler lI'Ian )(52. "L80 (Type 1) reQuires .25 max, N¡ and .35 max. CIJ. - ¿ 10 .- ....~. .,.f'¡.,....~--..... . .-.....~.."'t...."""....,."'"~..,.-~.I!'-....,...~-I_,.,.n~I..n~~"'A>"t....·_.....--..., .~. "'J1 ..\I'"'.,.,....,.,...,~:.-"'..'.'f\'1r-:---...... .. _J, "~.'r.,".'" '~''''~'':''"'"'::':'''~'':''~~I'!'\"'-'~.'~' . '~~~ "~"'·-7''''-~''''--· _...- _..,._';""-~................-- . . '~-'--"-;'.":~ -rov\ï'~jSHIP S'EWþ.KD IVIEPtfJIAN, Al_ASKÞ 3W c~r THE ,8 N R;\NGE> {'r~~;.~·:~~ ''', ~ ,. , 1 ; i' ,.~ 1.' ~,~ '-r';:.~;-¡;~ '.,-- . --' t.. 1 J. J ... ,~'."".= t·· ' . ,,' " .. ~,,¥-:.~.~.~ .' --...';"-;-;:~-~ LA.Nl... .~ ~ I -, , ~ r¡~:!Î 12117;6' />S., ~::¿,;t15I , OETAIL A'" AtM/()(J'(;Il SC:<lI.,IWt 10 c:;;: CHlfIl $(.'T6Q-(}P:l If:, ~1,.':; .Jt ,I .' ~N~A \ . ,\¡:.~ _ ,..r::::.~ " .,,~>.~~ -'-'1'1 f/~~ YÎ 0/.1' J / 1_\'" 'OJ" . ~.~~.~ r. I· . , I "t 'fF']'> > ,...,.,\ " ~\J, i , "" Ir .", r,.1 ....,,' 4 ~,,_¡\ ¡~~;.y,w"".-;)J.' Zf-þ If r / I .. . I "''''''' . -.. l6-.. 5O'''.Ø-067'J ."", ;. ..~. -'- ¡ ,.r.,: ,'1 L.<I.1 . . : 8,PDI. !J()·6S"'OV.1 :~P:"~" {;III#'" ...,....--'.~ f ., OW·..-"" ¡:;_. ~7"-'Íf-.;-.;" _;;;.;.' ' ¡J~":':' ^ i .. .: '~:z.=·· ' ~ ., / /,.-.- .(-,' .~-_.-"" """ .' ., L .. ' /. ,4; I,' ¡µ ,i I "ff, ihì"'~' ::'b... 0 ~ rF'::::~.' ¿'!J.ØJJhi-;11 . '-~~""~I' ~~1f~~' I" . - --;- ~. .:""f .,i· . ,."'''- '.¡¡¡,- I}I::/ /__=""" ,,'" le,.-II"·" : ...... --...~~' ',/' ¡---:-~~ [' 'V·'-" q. . / I",. ;j1;r.:.-."..:,¡tI;§L....-- ." "",:IT)¡ " ,. I ' I S£, ,UPPLE 1'~/ " "1 '-~ '",.,..;,.,.", -- ~"'" '" ' )Y,""",~--, . t" ..1 "'~_"'Û!: " ',t· ~ ..... .. .' _~._.__",,?'C't'~-'-- . I .' ". Ul '/ -". -- rj~"'.[.,."'- . ._,=_ ~~=-----..ß- ','LJ 'f'" -"""'''"-~f~~i;¡;..;;;:y~rti¿i .. :J.L_ ""I.&U'oO.3~8". . LOI\OJ4f1"O:¡I'I2;OIl"w. ----_.- ',j;;' [, t·:;,,~. .) . II ,I, ! r I ! I . , ! ' I I I I ! :/:_ :-:' .-:'. ::~:.!..~. \ J!;!'I,IL<:r "lJ,';,i--,n_, - - . . __ _-:-~_..___ '---~, So", -:::--:--.:.- -_.~"...--- i~?~ ~'C...~:.:i1.;ji-,;¡·tM£ll/J!'!!. . ~~~::,:::;~;ND:;~;;;;;?-:'-~:·~· ". __..4RD $6 CO/WErE]) :nc:rS SCHOOL 3P:crro ;:::UANTTO mi:C:~~=EOF.~ N,'!' '__"" .WTIFFSV,STAr1ÚIFÃ1.A C/f4,JJ5;' .",' ~:=~~PATBD MAi,,~ Ú/f!,="SE,N?, ~.<N ~ ------,-~ :;-'---: -~---~-~ '~~::;N'-;¡:"~r.W' .': ~::;:~-:--'-- . AP'''''UR£.-C~''Þ ':()IlIU';M;,i::!:_~~~ .~~X:COÆy·..~..~r:~=~:;;;C- ,"¡;;,J" " " "?Ifl" £"'1 e - L' IaN :~w .... Call Dave Higby. .Q.93 bbl water plus 74 ppb of salt = 9.5 About 15 ppb gel plus 60 ppb barite for 9.5 to 10.5 Rough cost $50 for 80# sack of salt, $50 for 100# sack of bar, $19 for 100# sack of gel. Baroid has an agent in the valley Arctic Mining and Oil Tool, 745-3325. e e e . ATTACHMENT 1) $100 permit fee paid with cash. 2) Plats are enclosed. 3) BOP equipment and a diverter system is not necessary for a shallow hole of this type. Se.e. <tt ~ ße./'()v.J, 4) 6 1/2 in casing will be set into bedrock at approximately 330 feet and cemented ftom bottom up with 6#/gaI. cement. The casing will seal off the glacial and fluvial ground water zones. Tw T"t0ll'o'.Je:.. ~ ~ee.. c:1r~tl1?d ........ t$ ....4- ...ba.-:f- 3"'o~ c:....S"~...~ w~l( ~ se{. .....e-\.l......:j... -tw -r,...."'e~, (;2.0 too 3øt~ 5) A diverter will not be used for this shallow hole. 6) From a review of wells previously drilled in the area, over pressured zones are not anticipated. Barite and cement are kept at the well site should any problems arise. The mud system is designed to be over balanced to about 0.5 psi/foot, this will insure the integrity of the ground water sands while drilling as well as rig safety. The Pittman # 1, that was drilled about 4 miles west of our current location encountered a shallow sand that flowed a minor amount of gas and water fi-om about 1100 feet md. The final shut-in pressure was 640 psi and the zone flowed 120b/d rate of slightly gassy water. This zone was drilled with 9.5 pound mud. Most other wells in the area drilled this shallow zone with 9.1 to 9.5 mud weights with no problems. We currently plan a 9.3 mud weight and higher as needed. e o.":~ \.AJ~ If be \.A.SccP -tv w ...:.¡kf ~t The drilling fluid program is further described in the attached coal expl~ati~C¡i s:.p N fI.cJ&~S4V"'¡ , permit. We are currently using a stock tank as a mud reservoir. An desander is used to condition the mud when needed. 7) No over pressured strata is anticipated. 8) No seismic data was used to locate this well. 9) NIA 10) Drilling will be with 95/8 bit to bedrock where the hole is to be cased. Drilling fi-om there is to be with 3" core bit to m. The proposed drilling program is further described in the attached coal exploration permit. llJ er\\l~"'1 ~~le..$" ~p~ i-c...ILt-- .ç~..ç.e.+ ~ d.V":Ll~""'j --Fe-. t>--cJ. e..,L..'-k..... ~~.$ ....-~\..\. ~ ~~J Ck.lt.\.o.J CCMlt' ore-. \.......ok (o,s w.11 M I' ~ ~ l'^-c:...-C ,^-d. e.. IS - Lo,,) .{>-e.,,^s~ ~ - 7 ---a. - j" -........,; 'tJ~......ovJ.ITe..~e. Ú~c."" <:.,'1/ 1 ~\~ ---....{.~\r c-.-J -t--e-""1-.....~ 0~ 7 ' Oo-f'*'- -t~ 0....\-';) Sl..,.. :. u+;......d-..J {''""o~ dA.LtJ-;~~ 5""1'" L-> ~ ~ J.v -: \ le..v s L 0 d to b.o- $ t.A. ~ ",^'d,t"€ tÞ ' J.l~ ..~ ~'. .T/~,- ft-.... '(:~4~-þ'( {- . j·}f~·4.~", ß: L~'~ c<t, a;'J' (} 1lJ't... ~ L.,/~' ~ \" Da\'id V\ . ..,()11nstoI1 -------..--, - ;¿.' -: -. - , _. ~ Oi! a:lf! Cas CUIJ.~rmlioJ ,Jul fj:viroJl~7!èïìt;d-A~-;;:-~ . . R t-gl1laIVfJ' COll1pJiæ ice and Pemnr Acq"isÜioIJ. ~_..._.... .. Phone: 907-34.5-2629 C-illaü: d"..10hILc;t0l1@n1ÎŒ0nct.Il\..'t ....-..... .,.. . 320 l\.1ariner Dr. Anchorabrc. AL1~ka 995!S Ii!' ~ H ì.... Preston I Gates I Ell is LLP -' March 16, 2000 Robert N. Christenson, PE Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Re: Houston #22 1600' FSL, 3340' FEL, Section 16, TOI8N, R003W, Seward Meridian Dear Mr. Christenson: Our client, GRI, Inc., proposes to drill a shallow coalbed methane well at the referenced location. GRI anticipates encountering its targeted coal seam at around 500 feet, but is requesting authorization to drill to 650 feet should a deeper objective become necessary. Because of the shallow nature of this well, GRI is requesting waivers of the requirements for BOPE and diverter under 20 AAC 25.035(h) and the drilling fluid system under 20 AAC 25.0330). GRI proposes to drill the well to TD using an air/foam system. The depth of this well is not much deeper than wells routinely drilled for residential water. Because of the shallow nature of the well, overpressure zones or well control problems are not anticipated. The Houston #1, #2 and #3 wells, drilled in the adjacent section to the south, did not encounter any shallow gas or overpressure zones at equivalent depth proposed for this Houston #22 well. Because GRI must spud this well before March 31,2000, GRI also requests expedited review of this permit. GRI apologizes for any inconvenience this may cause the Commission. Thank you very much for your assistance, and please call me with any questions. Very truly yours, REêE1ViP PRESTON GATES & ELLIS LLP MAR 17 _ At~~t,,_~ C¡l.~ G~CCftS~C~ t\l....w[\Io- jlJ:ißhßraRa~ ~t....J..lHU._~~ ,,'" -¡~ By'" ,. NI ¡'¡(f---"" \J\ ')Y'Açy¿'~l,- JeIÌnifer M. i€oughlin rj Agent for GRI, Inc. cc: John Teich A LAW FIRM A LIMITED LIABILITY PARTNERSHIP INCLUDING OTHER LIMITED LIABILITY ENTITIES 420 L STREET, SUITE 400 ANCHORAGE, AK 99501-1937 TEl: {90l} 276-1969 FAX: {90l} 276-1365 www.prestongates.com Anchorage Coeur d'Alene Hong Kong Los Angeles Orange County Palo Alto Portland San Francisco Seattle Spokane Washington, DC VU; 1..1''''''''' "",. ___-y.-y..~ "l-..~.. ..,,,. _~'UI!'~_"'" ":"I..." .... ........a-o_ ~............. _..._~~__~~__ - --- '-'" PrestonlGateslEllis LLP FAX COVER SHEET TO: Robert Christenson FAX NO: 276-7542 COMPANY: AOGCC CONFIRMATION NO: FROM: Jennifer f\1. Coughlin March 17, 2000 CLIENT· MATTER NO: # DATE: TOTAL NUMBER OF PAGES INCLUDING THIS COVER SHEET: 2 IF YOU DO NOT RECEIVE All OF THE PAGES, PLEASE CONTACT: [X] FAX OPERATOR: (907) 276·1969 [ ] NAME: EXT: COMMENTS As requested, a letter from John Teich (GRI, Inc's president) stating that I am their agent for this transaction is attached (with hard copy to follow). Please call with any questions. RECEIVED MAR 1 7 2000 ,.... ~ ;, I' Alaska Oil & Gas \;OOS. commrSSt0f8 Ançttorage The Information contained in this facsimile is confidential and may also be attorney-privifeged. The information is intended only for the use of the Individual or ent!ty to whom it is addressed. If you are not the intended recipient. or the employee or agent responsible for delivering It to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited, If you r.ave received the facsimile in error, please immediately notify us by a collect telephone call to (907) 276·1969, and return the original message 10 us via the U.S. Postal Service. Thank you. A LAW fIRM I A LIMITED LIABILITY PARTNERSHIP INCLUDING OTHER LIMITED LIABILITY ENTITIES 420 L STREET SUITE 400 ANCHORAGE, AK 99501 TEL: {907} 276·1969 FAX: {907} 276·1365 www,prestongates.com Anchorage Coeur d'Alene '"long Kong Los Angeles Orange County Palo Alto Porlland San Francisco Seallle Spokane Washington, DC ~t·1RR~1§'~2ØØ0 15:36 -rnÔM:smRTÃMËRÏcR-- 831-439-5585 TO:9Ø7 2587028 P.002/002 -' f}IHG Um~d ~ March 17, 2000 Robert N. Chrístenson, PE Alaska Oil and Gas Conserva.tion CommisBion 3QOl Porcupine Drive Anchorage, Alaska. 99501 Re: Houston #22 1600' FSL, 3340' PEL, Section 16, T018N, R003W, Seward Meridian ACN QC;I9 1(,1 904' 89 fJW'lW~ Rotc! Vk1:oriIl f'9rk WA 6100 P'O Bo::ur: , 1A BW"$wood WA 6100 AUS'rItAI.IA T~; "89252 0818 F.1't:' 6' 8 nl§~ bEm wwwJh3.Q:1tn ASX~.'HY D~ß,f Mr. Christenson: This letter will oonfinn that Jennifer M. Coughlin) of Pre $ton O~tes &. EUis LLP3 420 L. St., Suite 400, Anchorage,.Alaska 99501:, haa been autho:rized by GRt me. (a wholly owned subsidiary ofIHO. Ltd.) to act as GRI's agent in cormec:tion with the above project. v my tnùy yours, )!9' ~;)K. B~Teì I pi: Pr~ nt ).... RECEIVED MAR 1 7 2000 AJaska on & Gæ Cons. Commission ~ ~~. -.......~;, ALASKA OIL AND GAS CONSERVATION COMMISSION NAME - AFFILIATION (pLEASE PRINT) \ã~ M(j..'-,j~' [)~;¡ çeð/}?o~'L-7 /¡:' 1/ ~ ¡) /¡I I í:ò .' / /,r.,l.".4Pi ï ..-' K l ~.sj('L )Jltuc. JÞhoA..jh y;?ln ....v u.Jd ..v\ ~-e.. ~ G XLI ~ ~ \ \ - '<-\~~~~c:...~~ \-\.~~\~~ Meeting Subject Mû..~ ê) \ \ d-OOO Q <6"--SCJ Date/Time ~O(.., C <- pfoGCC 4.();:. C~ k", l.. D~; CÞJ Ad (:, r3__ TELEPHONE ~~ ~ - \d-ÇQ ?í3-l22.7 7~ :r --!... ? r1, . /' V ¿..(,/ -./ Jl(l - ?¿ IL( { 1 Lf j. .l' ¿ f '10, 1 - ( "Z 2.'6 '?~~""Q.. d. ~~~"-S ~~~ ~ \- '>-->¡ \'I~"e,~ \"\~ c ~r...\-\ù..'- ~c, .ç <=:;¡, G R. \ \ ~ 'À(::)'-.) ~ ~ ~ ~ è;)..d to <::, \<.. \ ~ ~ v.\,~\R~ ~ c" \/\\) ~.d-Oa -(),-\::l.') ~ ~,\ \\ <:.\ ~ ~~ ( ûal~ \ ~ ~ ~<? o\-\-.-..~",ç; u....::Jê l \ t'.. ~ o..~ ~~ ~ \: e) \'\. Th <:è. ~~\-\- o.~.r\.....\!'V\O",~ ~~ ~+ ,Q\b~~ 0.."'':-1 \,",6~~~~ rn-~"~\<ìS -\-~ ~ro~as~ ~t"),,~~oç:- \ ~'\~ ºl>'Ì\"~~ r.r-Q ~r\-~<ê '" ~ì..... ~~ "'-~ ~":> \Cê.~ ')e...."'::.~"¿) \""1 n~ F>\c.:-\\ \r- ~~\: -b ("JJ""\c;.~, -\+..<2:.."-« o..~ ð~"V~fu~~.~,/ ?/d-{ NLM1270P FILE: ADL 381134 SEE LAND DATA? N DEPARTMENT OF NATURAL RESOURCES CASE FILE ABSTRACT 03/24/2000 13:55:57 PAGE: 1 CUSTOMER-ID: 000036139 GRI, INC. JOHN TEICH, PRESIDENT 4900 SPORTSMAN DRIVE ANCHORAGE AK 995024169 CASE TYPE: OIL & GAS LEASE COMP CUST UNIT: OIL AND GAS DATE INITIATED: 10-27-1992 CASE STATUS: ACTIVE TOTAL ACRES: 4,948.730 SALE AREA COOK INLET FILE LOCATION: DIV OIL AND GAS OFFICE OF PRIMARY RESPONSIBILITY: DIV OIL AND GAS LAST ACTION: 12-12-1997 ASSIGNMENT APPROVED ***************************** CASE ACTIONS **************************** 10-27-1992 TRACT DEFINED SALE DATE STATUS (11) BID TYPE SALE NUMBER TRACT NUMBER FORM NUMBER CONDITIONAL Y/N PRIMARY TERM WORKCOMMIT TERM 01-26-1993 INITIAL OWNER SEGMENT CODE CID NUMBER WORKING INTEREST % ROYALTY INTEREST % 01-26-1993 INITIAL OWNER SEGMENT CODE CID NUMBER WORKING INTEREST % ROYALTY INTEREST % 01-26-1993 NOTIFICATION LESSEE NEW REL (20) OLD REL CODE NOTIFICATION CID NUMBER OLD CID # (SALE NO) 01-26-1993 BID RECEIVED STATUS (12 ) BID TYPE TOTAL BONUS BID DEPOSIT AMOUNT ROYALTY SHARE % NET PROFIT SHARE % SLIDING SCALE ROYALTY % 02-12-1993 CHANGE CASE SUBTYPE CASE SUBTYPE CHANGE SALE AREA TO MH 02-12-1993 LEASE AWARDED STATUS (13 ) 03-25-1993 LEASE ISSUED EFFECTIVE DATE EXPIRATN DATE STATUS (21) LAPP RESOURCES INC 100% 01-26-1993 TRACT DEFINED FIXED ROYALTY RATE 67A-W 134 DOG 9208 N 7 - 0.0 1 LAPP RESOURCES INC. 100 87.5 1 SALE 67A-W 0.0 12.5 DESIGNATED NOTIFICATION LESSEE DISPOSAL NAME LAPP RESOURCES INC. SALE 67A-W BID RECEIVED FIXED ROYALTY RATE 29989.3 5997.87 12.5 e 0.0 0.0 CI MH HYPOTHECATED LEASE AWARDED 04-01-1993 03-31-2000 ACTIVE FILE: ADL 381134 SEE LAND DATA? N DEPARTMENT OF NATURAL RESOURCES CASE FILE ABSTRACT 03/24/2000 13:55:57 PAGE: 2 03-30-1994 NOTIFICATION LESSEE NEW NL (20) OLD NL (20) NEW NOTIF LESSEE CID# OLD NOTIF LESSEE CID# 04-11-1994 ASSIGNMENT APPROVED EFFECTIVE DATE SEGMENT CODE ASSIGNOR'S CID ASSIGNEE'S CID WORKING INTER % ASSIGNED ROYALTY INTER % ASSIGNED LAPP RESOURCES INC 100% 06-24-1994 CHANGE CASE SUBTYPE CASE SUBTYPE COOK INLET LANDS NO LONGER HYPOTHOCATED UNDER THE NEW MENTAL HEALTH SETTLEMENT 04-01-1996 NOTIFICATION LESSEE CHANGED NEW NL (20) NOTIFICATION LESSEE OLD NL (20) NOTIFICATION LESSEE NEW NOTIF LESSEE CID# LAPP RESOURCES INC. OLD NOTIF LESSEE CID# BACHNER, DANA K 04-09-1996 ASSIGNMENT APPROVED EFFECTIVE DATE SEGMENT CODE ASSIGNOR'S CID ASSIGNEE'S CID WORKING INTER % ASSIGNED ROYALTY INTER % ASSIGNED 12-01-1997 NOTIFICATION LESSEE NEW NL (20) OLD NL (20) NEW NOTIF LESSEE CID# OLD NOTIF LESSEE CID# 12-12-1997 ASSIGNMENT APPROVED EFFECTIVE DATE 12-01-1997 SEGMENT CODE 1 ASSIGNOR'S CID LAPP RESOURCES INC. ASSIGNEE'S CID GRI, INC. WORKING INTER % ASSIGNED 100 ROYALTY INTER % ASSIGNED 87.5 ***************************** LEGAL DESCRIPTION **************************** 10-27-1992 **SALE NOTICE LEGAL DESCRIPTION** NLM1270P CHANGED NOTIFICATION LESSEE NOTIFICATION LESSEE BACHNER, DANA K LAPP RESOURCES INC. 03-30-1994 1 LAPP RESOURCES INC. BACHNER, DANA K 80 70 e 04-01-1996 1 BACHNER, DANA K LAPP RESOURCES INC. 80 70 CHANGED NOTIFICATION LESSEE NOTIFICATION LESSEE GRI, INC. LAPP RESOURCES INC. e L ~-:¡ 0 ", ¡ipdV q / :::! ~ 1///' ~ .~~ ~~ TRACT 67A-W-134 T. 18N., R. 3W., SEWARD MERIDIAN, ALASKA e' SECTION 4, SURVEYED, FRACTIONAL, ALL, 640.96 ACRES; SECTION 5, SURVEYED, FRACTIONAL, LOTS 1 THRU 4 INCLUSIVE, Sl/2N1/2, N1/2SE/14, SW1/4, 560.80 ACRES; SECTION 6, SURVEYED, FRACTIONAL, ALL, 616.19 ACRES; SECTION 7, SURVEYED, FRACTIONAL, LOT I, NE1/4NW1/4, N1/2NE1/4, 154.24 ACRES; SECTION 8, SURVEYED, Sl/2NE1/4, SE1/4, W1/2, 560 ACRES; · w NLM1270P DEPARTMENT OF NATURAL RESOURCES CASE FILE ABSTRACT 03/24/2000 13:55:57 PAGE: 3 FILE: ADL 381134 SEE LAND DATA? N SECTION 9, SURVEYED, ALL, 640 ACRES; SECTION 16, SURVEYED, ALL, 640 ACRES; SECTION 17, SURVEYED, Nl/2, SE1/4, Nl/2SW/14, 560 ACRES; SECTION 18, SURVEYED, FRACTIONAL, LOTS 1 THRU 4 INCLUSIVE, NE1/4, Wl/2SE1/4, SE1/4SE1/4, Nl/2NE1/4SE1/4, SW1/4NE1/4SE1/4, Nl/2SE1/4NE1/4SE1/4, Nl/2S1/2SE1/4NE1/4SE1/4, NEl/4SW1/4, El/2NW1/4, 576.54 ACRES. THIS TRACT CONTAINS 4948.73 ACRES MORE OR LESS. e e AI " 8441 89-5 DATE March 16, 7000 1252 1$100.00 \ -- -----------"t)OLLARS f!J!=:,,':: ... ~~aJ¿J~\_3 - /l.:~'",,_ "__~.+.:'~lt.;.,~~) '~~~~~'.'" II!.-':'--'!'!'.;.'.>!." ~þ'!I~:,!-- e PRESTON GATES & ELLIS LLP IOLTA TRUST ACCOUNT SUITE 400, 420 L STREET 276-1969 ANCHORAGE, AK 99501 ,- ~ AOGCC PAY TO THE ORDER OF I ~I. gr- . 1:00:11. j 5 00 ~~5~0005? 00/1 One Hundred dollars and lITSJf19ftla1 Prft't!l',¿I1a~. FORPermit Fee/41467-99999 111008 a. a. ~III I: ~-~..:...,:~-~~~~~~! ) 'h-'~~_~'" .. .",--' WELL PERMIT CHECKLIST COMPANYf-fRZ / :::z:::i.Jc, . WELL NAM~v>h.,.,;19Z~ROGRAM: exp L dev _ redrll_ serv _ wellbore seg _ann. disposal para req_ FIELD & POOL Æ /I. INIT CLASS !/J,Ida:¡I(¿t{e..IIV)''k.L ~ )EOL AREA 5? Zó UNIT# /IÍ /I. ON/OFF SHORE ðl-1 ADMINISTRATION 1. Permit fee attached. . . . . . . . . . . . . . . . . . . . . . . iN 2. Lease number appropriate. . . . . . . . . . . . . . . . . . . . N 3. Unique well name and number. .. . . . . . . . . . . . . . . . . N 4. Well located in a defined pool.. . . . . . . . . . . . . . . . . DN 5. Well located proper distance from drilling unit boundary. . . . ...xW 6. Well located proper distance from other wells.. . . . . . ~ ¡:¡ c.:f..j /.. ,,;¡ /J ~ 7. Suffic!ent a~reage availabl~ in drilling unit.. . . . . . . . . ~ .Á Y N t:l<¡::>I-PY'Gc'r-o:y ~{ -rrr me Ó~5 . ¿j, 8. If deviated, IS well bore plat Included.. . . . . . . . . . .M (7, Y N .r. 9. Operator only affected party.. . . . . . . . . . . . . . . . . . Á~ 10. Operator has appropriate bond in force. . . . . . . . . . . . CY.)N 11. Permit can be issued without conservation order. . . . . . . . Y ® L . 12. Permit ca~ be issued without administrativ~ approval.. . . . . ~ ~e.-(~~ ;;h--,/I bul ~ ~¡ :J.. .<:>.£., 13. Can permit be approved before 15-day walt.. . . . . . . . .. ŒJ N ~ / ~r 1.4- ~... 14. Conductor string provided . . . . . . . . . . . . . . . . . . . @ N . 15, Surface casing protects all known USDWs. . . . . . . . 6? N 16. CMT vol adequate to circulate on conductor & surf csg. . éJ) N 17. CMT vol adequate to tie-in long string to surf csg. . --*' N 18. CMT will cover all known productive horizons. . . . . . . C!>( N 19. Casing designs adequate for C, T, B & permafrost. . . . t::Þ N 20. Adequate tankage or reserve pit.. . . . . . . . . . . . . . . . êl> N 21. If a re-drill, has a 10-403 for abandonment been approved. . . .-->f-f';t NA 22. Adequate well bore separation proposed.. . . . . . . . . . . . ~ N 23. If diverter required, does it meet regulations . . . . . . . . . . Y N W~\}ei[ ~j)\Å.~"7~~ 24. Drilling fluid program schematic & equip list adequate. . . . . ø N OJ \+Íl. th", (J.r\Å:-ho~ 25. BOPEs, do they meet regulation . . . . . . . . . . . . . . . . -¥-N rvrt- APPR <' DATE 26. BOPE press rating appropriate; test to - psig. .¥-N-- ('fA- ~ â('2.!f:(cc) 27. Choke manifold complies w/API RP-53 (May 84). . . . . . . . ¥-N- f\rC?'r 28. Work will occur without operation shutdown. . . . . . . . . .. (.5ì) N 29. Is presence of H2S gas probable.. . . . . . . . . . . . . . . . Y (ij) 30. Permit can be issued wlo .hydrogen sulfide measures. . . . . W N , ~. ". /q.h.' nvW. ",1/1. b'€Z ðc-It!.J$le ·))r(!t.I/i~. 31. Da~a ~resented. on potential overpressulJ?~9J1e~. . . . . éDN~ ~ 3.UDt), ;:r.; ~;r AJ~ ír 6~'~ 32. Seismic analysIs of shallow gas zones~. . . . . . .. A Y eft> ~ 'q.h -- I. 'j .¡ -:¡¡ _ I /" ~ ./ /2 / / APæ DA:rE 33. Seabed condition survey (if off-shore). . . . . . . . . . . /U,n,..x N cT o-y~~ ~ ~~-It?d" ~ .~ ;?lee::T{/Jj /"=~~ ¿" ~ ~ C634. Contact namelphone for weekly progress reports [exploratory onIY-é'DN ~~; ~fJ~¡;ÂI;¡::: :;: vi~J?;~'~~ ~ ANNULAR DISPOSAL35. With proper cementing records, this plan ~ h ¿<1,~~.. ~ f 'j; ~/t; (A) will contain waste in a suitable receiving zone; . . . . . . . Y N (B) will not contaminate freshwater; or cause drilling waste. .. Y N to surface; (C) will not impair mechanical integrity of the well used for disposal; Y N (D) will not damage producing formation or impair recovery from a Y N pool; and (E) will not circumvent 20 MC 25.252 or 20 MC 25.412. Y N GEOLOGY: ENGINEERING: UIC/Annular COMMISSION: /"":. / . ~~ '-..... '. / CQmTIentsflnstructions: ~Þ8~ ~crW~...:~/"l.St WM I _ ~J;:I~ L-t>'?1-f-rlU,:::T ~ ..DA.Vt~ =4oÆnsf-éH'\. 3t.f~~ 2.k,z...c¡ ~ TE~ L \. (;ö Æ~t~1 <:Jjz.y../OQ , ~~.. DA¡1 3·Z.o0 ENGINEERING -- GEOLOGY APPR DATE -- -- l,.1J2- v"~~ a.p()/I:>uG... .J:- ~Q.. V.T~\._" 1'<...1 ßfI:C{'t'.~ c:\msoffice\wordian\diana\checklist (rev, 02/17100) c o z o -I :E ::0 -I m e. Z -I :I: en » ::0 m » e COMPANY It ¡¿II .[;µc.. WELL NAMEk'~ -IJ,J 7 PROGRAM: exp X- dev _ redrll_ serv _ wellbore seg _ann. disposal para req_ INIT CLASS ~..;¿,¿. -~ GEOL AREA '? 2.-00 UNIT# ON/OFF SHORE ~ 1. Permit fee attached. . . . . . . . . . . . . . . . . . . . . . . ~ N 2. Lease number appropriate. . . . . . . . . . . . . . . . . . . . N 3. Unique well name and number. .. . . . . . . . . . . . . . . . ~ 4. Well located in a defined pool.. . . . . . . . . . . . . . . . . Y 5. Well located proper distance from drilling unit boundary. N 6. Well located proper distance from other wells.. . . . . . . . . N 7. Sufficient acreage available in drilling unit.. . . . . . . . . . . N 8. If deviated, is wellbore plat included.. . . . . A/.. ~.. . . . Y N . 9. Operator only affected party.. . . . . . . . . . . . . . . . . . éi) N 10. Operator has appropriate bond in force. . . . . . . . . ~N 11. Permit can be issued without conservation order. . . . . . . . Y N A~ Pt~ 12. Permit ca~ be issued without administrativ~ approval.. . . . . N ~ ,g, ~ 13. Can permit be approved before 15-day walt.. . . . . . . . . . Y N , ENGINEERING 14. Conductor string provided . . . . . . . . . . . . . . . . . . . Y N ~c:...a~\."\~s\~\~C"s""c.,~ ~~~~ ~t'-\Ii::..':'":>~ ~~~c::.....~-":'~\.CJ...<œ:. <èN:.ö-'::'~~, 15. SuñacecasingprotectsallknownUSDWs. . . . . . . 0j) N v.rNt.",~~...""~~!t~\~'E.;~,ð~~U-~\\<tNC~(·';\~~'-l:IS~'J.j·~ 16. CMT vol adequate to circulate on conductor & suñ csg. (j) N <:"R.~ "'-\ '-Ja\''ì~_ t"\r>'Ñ': -\~~ o.Ò<.\...~~ -\c:::,C(c f"\«-~\ ~ s..~~<:.sè. 17. CMT vol adequate to tie-in long string to suñ csg. . ..J( N \-..)~ ~ 18. CMTwillcoverall known productive horizons. ..... . ~N" (' \. ,'c\,,- "--_.~_ -\,'\.. '.'. t.. {'(', \. ~\.....\........\l. 19. Casing designs adequate for C, T, B & permafrost. . . . . . . N ~s<t<:J<:>"'-\"Q \,,~,""Q(·w::>~ ~~\~ 1- "«'-~ð:a~~"c.;;.. ,\,Q,~":>\~~ ,,> ~'S.~\~\~ ''''J'''' 20. Adequate tankage or reserve pit. . . . . . . . . . . . . . . . . ~ Y N R\<: ""-'-""'\"~'-I«: ú'f'l\.::::\'i:;A~1 $)(:)~/bC-\-CJ..,",\\Ù~\<:-..\t'~\~~E:: \.\t\\\--.c:>\Q...~~'')\;) 21. If a re-drill, has a 10-403 for abandonment been approved. . . ."¥-N- ~ ~ ::: '\3 \c::, ~\ \"':, 22. Adequate well bore separation proposed.. . . . . . . . . . . . (ÿ) N '" """ ~ (. \ l~ ~ 23. Ifdiverter required, does it meet regulations. . . . . . . . . . Y N $\"'o.~r~~,~'\r""'«:'''''~C)'' J::"'9~'-\<:::"~~"~~\'$..' \\~'Ü 'rV\.-.:\C) >Cjt \ 24. Drilling fluid program schematic & equip list adequate. . . . .' (Y¡ N .....v.J\~\..\:\w<.tr. ~~-\"''\6~'':. c:....""ò~~c...\ \<"l. c::.-~'\..:>Q:: ~",,,>-\bÇ.c...-.:\c::.-\<o.~\~t::>~""\~ ~\¿., 25. BOPEs, do they meet regulation . ' . . . . . . . . . . . . . . ~t... . bC>..~\ ~Q. ~..:s,.'" bit. ~,,~,,\<::o..~\~ -\<:>Wð.S4 ~ "'«::> I() S ~ ~~/J DATE 26. BOPE press rating appropriate; test to psig. -¥-N-")þ.. 'Q..c-~ Q.c¡.~\~~ ~~,~\:)\ \()S"~,,,,-,"'D \()"ìtlh(,,~ \S1'\.~f' \ ~ _~r!/:> 27. Choke manifold complies wlAPI RP-53 (May 84). . . . . . . . -¥-N- )....) ~ .. ~ \ b~\ ~,~ \ 28. Work will occur without operation shutdown. . . . . . . . . . . (J) N 29. Is presence of H2S gas probable.. . . . . . . . . . . . . . . . Y ® tt ~ / /"j // ,,1 30. Permit can be issued wlo hydrogen sulfide measures. . . . . (j) N ~ /~ ~....J~1/f ðT ~-.0 ~,t::: t'2~ /'Y.4:"¿"-"',~ 31. Data presented on potential overpressure zones . . . . . . . Y~ ~ } / J .ð /.' J / _ /. 32. Seismic analysis of shallow gas lones. . . . . . . . . . . . . Y /^J qcf-- _z~../A brø.f4A7'f3d/,;~ 7f~ /lP/) ~"..r. "-.Þ-T APPR DATE 33. Seabed condition survey (if off-shore). . . . . A-I. .~.. . . Y.& !,/J / ~?/ // j /' 1f/"L _ _ 34. Contact namelphone for weekly progress reports (exploratory only¡(f)N ~?~f ~J7'2.' Ad C~ þ/ .ð4-'. P'}C'. ~~ <..AY~ A~ ANNULAR DISPOSAL35. With proper cementing records, this plan ~. ~ ~f o{' ~e... /,~ 4e.d, / od~ <?.<X,/j!!/.... ~ (A) will contain waste in a suitable receiving zone; . . . . . . . Y N caf'l ~ t:r~"¡"'t!)//J 1"'/..-.) <:).{' ~rQc..*/$<' ~~ ~~ 7~ -.:;.¡ (B) will not contaminate freshwater; or cause drilling waste. .. Y N .; p t:. j "AI ~ ~ ..;¡"!) .. // _ to suñace; '?'fi"'/ Q,c ';,,-.1(; /v ¡q~ &".s: -ž:.- .::> ~ ~""~. S'c::ra:r/ f6 (C) will not impair mechanical integrity of the well used for disposal; Y N ~ jJ _..i'; eI $<::x;>./ o7f/u.l eel ;S o.¡z,) Q.u;;/e.<. '.r ;;t ¿ If / (D) will not damage producing formation or impair recovery from a Y N c.., ~J, 37dr. ,. II "%" 0 r t:::4 /oÝ ~"~.¿".r~ pool; and ~e./ ~ ~$ k b4e. Cr 1'Ac.. d~ CAÞJ ~ ~ «..J,1,V! C'c.Å~.r C/"./#~ :v (E) will not circumvent 20 AAC 25.252 or 20 AAC 25.412. Y N /1, ) 7 -- . h £. ~ x: ¿ GEOLOGY: ENGINEERING: UIC/Annular COMMISSION: 7?J.£" 7~~/ ~ Co~n1i/lnstrlTéilon~ ~ ~ 5~' ê!:. .fð ~ Co ,lðJ S /~4J ~Þ8- +ª~ WM ~%~ j)~ j)ç(Ì{~ A ~_ ..,¿ j'_ />. /7. J ~~ "if' ~e.$':s'dÏ" MItL~ ~/'ð.\-~ <-fJ-?~. V. y. ¡:;£Jl.1\-rÇV? -g~S"'" 262..1" de;, WELL PERMIT CHECKLIST FIELD & POOL ADMINISTRATION -- GEOLOGY APPR DATE -- -- c:\msoffice\wordian\diana\checklist (rev. 02/17/00) , . , -- c o z o -I ~ :E :::u -I m Z -I :I: en » :::u m » e . . Well History File APPENDIX Information of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplify finding information. information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically organize this category of information. -,.. ... --....¡ -- --..... September 23, 2004 ~~'J... RECEIVED SEP 2 3 2004 Alaska Oil & Gas Cons. Commissiol1 Anchorage 1Io~ _ _ iIo E & P SERVICES, INC. Robert Crandall Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Final Report Houston Well P&A's Dear Mr. Crandall: Per your reqµest, please find enclosed two copies of the summary report for the Houston No.'s 1,2,3,4 and 22 well P&A's that Fairweather E&P Services, Inc. has completed for the AOGCC. Fairweather greatly appreciates the opportunity to assist the Commission on this project. If you have any questions or require additional information, please contact the undersigned at 907-258-3446. Sincerely, FAIRWEATHERE&P SERVICES, INC. ?~~¿¿<'~ Jesse Mohrbacher President Enclosure Nc>r-t~ 0 r":~J. hC:d t.o(~" PQ..1tJ. See. f.·I.l~ I q 7 - J. t.{ I I q, 7 - 7 c.r ~ 2000 East 88th Avenue· Anchorage, Alaska 99507 . (907) 258-3446 . FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 . Houston, Texas 77060 . (281) 445-5711 . FAX (281) 445-3388 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · -- '~" ~ .. ~ ""'- 'iIIIIIi ~ --.......~' .._..... ¡ ..........CR1rIIi ....I'\,J _ _.. E & P SERVICES, INC. REpORT OF PROJECT PERATIONS Abandonment in Compliance with AOGCC Regulations of Five Coal Bed Methane Wells in the General Vicinity of Houston, Alaska September 22, 2004 RECEIVED SEP 2 8 2004 Alaska Oil & Gas COilS. Commission Anchorage Prepared for: State of Alaska Department of Administration on & Gas Conservation Commission AOGCC Contract 0501 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · TABLE OF CONTENTS Page 1. INTRODUCTION.. ............ ............ ................ ....... ........... ........ ........... ... ............ .... ... .... ........ 1 2. PROJECT PERMITS AND APPROVALS...................................................................;.... 1 2.1 Landowner Approvals.............................................................................................. 2 2.2 Applications for Sundry Approvals ......................................................................... 2 2.3 Landfill ApprovaL.................................................................................................... 2 2.4 Houston No.1 Reserve Pit Closure Plan ................................................................. 2 2.5 Contained Water Discharge ... ............................... ................... ......... ...... ................. 2 2.6 Temporary Water Discharge... ................................... ......... .......... ...... ...... ......... ......3 2.7 Approval to Transport Diesel Contaminated Gravel............................................... 3 3. COMPLETION REPORTS AND PHOTOS...................................................................... 3 ,', ; APPENDICES Appendix A: Landowner Approvals Appendix B: Applications for Sundry Approvals Appendix C: Landfill Approval Appendix D: Solid Waste Disposal Plan Appendix E: Contau.,ed Water Discharge Appendix F: Temporary Discharge Permit Appendix G: Approval to Transport Diesel Contaminated Gravel Appendix H: Completion Reports and Photos · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 1. INTRODUCTION Fairweather E&P Services, Inc. (Fairweather) was contracted by the Alaska Oil and Gas Conservation Commission (AOGCC) to plug and abandon (P&A) five coal bed methane wells and close an open reserve pit in the vicinity of Houston, Alaska. The well P&A program and reserve pit closure described herein covers the permanent P&A work and site clearances for the Growth Resources International, Inc. (GRI) Houston well No.'s 1,2, 3, 4, and 22. These wells were drilled during the years from 1997 to 2000 in anticipation of developing a coal bed methane gas field. GRI, an Australian company, failed to complete the field as planned when the cost of development and other project conditions resulted in an uneconomic venture. The leases were dropped and the wells became the responsibility of their bonding company, ACE USA and ultimately the AOGCC. The P&A and reserve pit closure work was performed between the dates of August 23 and September 8, 2004 and effectively closed out the well sites and reserve pit in accordance with AOGCC P&A and site closure regulations. The project was started by contacting local landowners in the vicinity of the wells regarding the work that was to be performed. This process included providing proposed work information to local landowners and soliciting access approval to the specific parcels where each well was located. Project permits were also acquired during the up front planning phase of the work. After all project permits were acquired and the field equipment had been assembled and ready, mobilization of equipment and personnel commenced from Anchorage and Kenai. The field work required 16 days to complete and was partially delayed by an intense rainstorm that hit south central Alaska on August 26,2004. The P&A of the five wells required seven (7) days to complete and closure of the reserve pit at the Houston No. 1 location required an additional nine (9) days to complete. The Alaska Department of Natural Resources (ADNR) requested that Fairweather perform additional work at the Houston No. 1 well site and reserve pit to accommodate various concerns of the local landowners in the Houston No. 1 vicinity. Fairweather completed this additional work under a separate contract with the ADNR. The entire project was completed without incident and within all applicable regulatory requirements. 2. PROJECT PERMITS AND APPROVALS The following permits and approvals were acquired prior to performing the field work: · Landowner Approvals · Applications for Sundry Approvals · Landfill Approval · Solid Waste Disposal Plan · Contained Water Discharge · A WWU Temporary Water Discharge · ADEC Approval to Transport Diesel Contaminated Gravel The above permit approvals are described below. 1 II' · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 2.1 Landowner Approvals Local private landowners in the vicinity of each well were contacted in writing by Fairweather and provided information on the timing and nature of work that was planned for P&A of the area welles). Written approval of the private landowners for access and performance ofthe work was requested in these approvals are included in Appendix A. In the case of the Houston No. 22 well, which is located on Matanuska Susitna Borough Land, the Borough was contacted verbally and a written report of the work performed on this well was provided to the Borough. 2.2 Applications for Sundry Approvals Applications for Sundry Approval were submitted to the AOGCC for each well that was to be P&A'd. These Applications with are contained in Appendix B. 2.3 Landfill Approval Approval for landfill of waste barite and bentonite at the Houston No. I location was acquired from the Matanuska Susitna Borough Landfill. A copy of this approval is included in Appendix C. Two 30 cubic yard dumpsters were utilized on the project to store and transport additional construction debris such as junk pipe, well cellars, pallets, cement sacks, pvc tubing, wellheads and other miscellaneous debris. These dumpsters were emptied at the Matanuska-Susitna Borough Landfill. 2.4 Houston No.1 Solid Waste Disposal Plan The reserve pit at the Houston No. 1 well was closed in accordance with the Alaska Department of Environmental Conservation (ADEC) Coal Bed Methane/Shallow Natural Gas Policy. A copy of the Solid Waste Disposal Plan is included in Appendix D. During the development of the project, the Plan was modified during discussions between Fairweather, the AOGCC and the ADEC to include removal ofthe reserve pit liner material versus burial in place of the liner. The liner material was placed in one of the aforementioned dumpsters and the drilling mud was buried in place after removal of the liner in accordance with the Solid Waste Disposal Plan. 2.5 Contained Water Discharge As part of the Houston No. I Reserve Pit Closure Plan, Fairweather acquired a surface discharge permit for the water in the reserve pit. The water was primarily rainwater and snowmelt and was analyzed to ensure that the discharge was within acceptable limits set by the ADEC. A copy of this permit approval is included in Appendix E. 2 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 2.6 Temporary Water Discharge At the conclusion of cementing operations, approximately 1,200 gallons of cement rinse wastewater required disposal. Fairweather disposed of this fluid at the Anchorage Water & Wastewater Utility (A WWU) facility located at 92nd Avenue and King Street in Anchorage. A copy of the permit approval for this activity is included in Appendix F. 2.7 Approval to Transport Diesel Contaminated Gravel Approximately one (1) cubic yard of diesel-contaminated gravel at the Houston No. 3 well site had been staged on liner material for future disposal. This material was recovered and transported to Anchorage Soil Recycling for thermal treatment and disposal. Approval for the transport of the gravel was required from the ADEC and a copy of this approval is contained in Appendix G. 3.0 COMPLETION REPORTS AND PHOTOS Completion reports for each well showing the fInal status ofthe well and photo documentation of the work performed were submitted to the AOGCC. A similar report for the closure of the Houston No.1 reserve pit is included. Copies ofthese reports are included in Appendix H. 3 ., · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Appendix A LANDOWNER ÁPPROV ALS . I, t I I I t I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Kenneth C. & Marcia E. Conn Address PO Box 940165 Houston, AK 99694-0165 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. Land!RJ Surface 0 Description of Properties Parcel # Range Section 21 LoUTract# T -OOA Township N/A 18N 03W Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes I no Activity Description Proposed activities would require the mobilization and use of well cementing a~d excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property listed above, please indicate your percentage of ownership, . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permi,ssiof1'herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you shooktdül'¡te any questions or comments, please contact me at (907) 258-3446 or em ail josborne@fairweather.com!-t1iYou may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. <. ....- -f1r- /I ....... - Day of 17""5 . Signed: ~ lev ~ Print: K -LtA.. <:"'0 ¡\. V\. 2004 Sincerely, ~ fI. tJ.f2-. Jeff OSbornf/ V v Asst. Project Manager/Permits CoordilJatpr:-;:~"'", Fairweather E&P Services ¡~;~~J),'\ r'c!-·i,;,i:~>. /:;~,.;.,.., \ . ¡ .,~, Contact Phone # ~q7~~2 (,(¿~ Please Sign and Return One Copy · · . RPR100 : Account # 1304000TOOA · 0 1st CONN KENNETH C & MARCIA E . W 2nd N 3rd · E CIO R Str PO BOX 940165 · S CIS HOUSTON AK 99694 0165 . Certified OWNER TAXABLE 2003 CTY 0040 · Land Value 12,600 · Imprv Value 103,800 · Total Value 116,400 · Mill Levy 14.483 Address: 15034 W HEATH DR · Acres: 3.73 Original: 3.73 · Place Name: CITY OF HOUSTON . Map Number: HO 5 T/R/S: S 18N03W21 Tax Roll: REGULAR 2005 tupd: 3/15/94 16:23:45 TPHILO tF3=Exit F4=TotalsF5=Backward t · t · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:28:4~ Recording District: PALMER Subdiv HEATH HTS Certified 2004 CTY 0040 15,900 111,600 127,500 14.800 IMP Market Sale Work in Progress 2005 CTY 0040 15,900 107,200 123,100 .000 6/1993 Notice/Bill: OWNER Neighborhood: HOUSTON F6=Forward F13=Abort F14=Qptions þ þ þ þ þ þ · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Mieflacl L.MiI(~ rllt:/HA-5 F B4/Ã'i> AddressfX)8ox S4000tT- HC 3~ !J&:);;t:"-:27~:z.. --HðtJ 6 lUll , AI< 90~4-nOQ5_~ ¿,vA-5ït..L.;ì/ A-k .::¡r¡; S*f Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned andlor leased by you and described as follows. Land [8] Surface 0 Description of Properties Parcel # Range Section LoUTract# 0-8 Township N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know ab0l!t on xo,ur propertY? ;(;;)/ no If yes please describe: P{ /:AS£: B¿,pd"' AC¿¡;'~ æ&'Á-Þ TÞ ¡.vjU.:s P-;L+ 3, p,-~£ cur- VÞ£ ¿L wI f}ð~# .41' L¡; A-~"'" i5" FG E. 'T ()OÒ#'IV ØlEl-~w A!A1#,,(!A¿ ð-1:.,uÑ LeVEl- ¡¡-ÆC:;~4~ç ¡ ¡- 5J7::s . . .. Æ¡t;:-If'r wIlG"fÆ A i'bu:?1: ::uTIE Wj111 F«¿¿ BÁ$'G""'I/ÍÎÑ¡--- I$''' ActIvIty DescriptIon - Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property listed above, please indicate your percentage of ownership, 5'ó%. We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or emaH josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. ~c.) ,II Day of'J'ttt.)/, 2004 Signed:-;~~ Print: rlløM.,f5· F: . j3A-¡¡fj) Contact Phone#d ~D 1- '?f97.·- 9í V'.'2.. Sincerely, ~ ~ W Jeff os~e {/ v Asst. Project Manager/Permits Coordinator Fairweather E&PServices Please Sign and Return One Copy · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Michael L. Mikkelsen Address PO Box 940005 Houston, AK 99694-0005 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. Land ŒI Surface 0 Description of Properties Parcel # Township Range Section LotlTract# 0-8 N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know about on your property? Q no If yes please describe: ?(~.s<.. r~~LI- -f-.ø 7ðrn 13a,it<ols ~ fJ-\.me,rds. L WL CIJ "" n.T"""'he r '-U1 u.a A-¿j rcs ÎO ~ ,.. CAJe.-t 1 ¢l.. I 'c..u..i- to UJ en 0 u., '1 Activity Description "-0 1?wr ~ .po L.\..Vl.lIl d;/-r'J,y¡ ..",~~. Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If..x0u are not 100% owner of property listed above, please indicate your percentage of ownership, . ~O ~. We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258..3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. ()-{ ~D)Of. :J cJ Signed: V~ Print: ? A- rn (ì) ì I<I<.f j ~ (J /7) Contact Phone #.. (qQz) .$>9:¿ -75"3 Sincerely, ~ (!. (2;:) Jeff Os~e v v Asst. Project Manager/Permits Coordinator Fairweather E&P Services Please Sign and Return One Copy · · RPR100 · Account # 18N03W21D008 · Audit 18N03W21D-6 · 0 1st MIKKELSEN MICHAEL L . W 2nd BAIRD THOS F N 3rd · E CIO R Str PO BOX 940005 I S CIS HOUSTON AK 99694 0005 I Certified I OWNER TAXABLE 2003 CTY 0040 Land Value 46,500 I Imprv Value 293,300 · Total Value 339,800 I Mill Levy 14.483 I Address: ** Multiple Addresses** Acres: 30.00 original: 30.00 I Place Name: CITY OF HOUSTON I Map Number: HO 5 T/R/S: S 18N03W21 D Tax Roll: REGU~hJR 2005 IUpd: 1/10/92 14:24:17 TPHILO · F3=Exit F4=Totals F5=Backward I · · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:27:31 Recording District: PALMER Certified 2004 CTY 0040 52,500 319,400 371,900 14.800 Work in Progress 2005 CTY 0040 52,500 311,800 364,300 .000 ~lotice/Bill : Ot'mER Neighborhood: HOUSTON F6=Forward F13=Abort F14=Options , · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Charlie McAllen Address 2422 Tulane ST. Anchorage, AK 99504 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. Land ŒJ Surface 0 Description of Properties Parcel # Range Section Lotff ract# C-10 Township N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes / no Activity Description Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property listed above, please indicate your percentage of ownership, . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. 'fyou should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. II ,Dayal ~ ' 2004 Signed: G tJi Print ClÆ~/ rJtJ¡k/ . ~Contact Phone # 33 f " 'fl J Sincerely, d I. a7 Jeff OSbornV {IV Asst. Project Manager/Permits Coordinator Fairweather E&P Services Please Sign and Return One Copy · · RPR100 · · · · · · · . OWNER TAXABLE Land Value · Imprv Value .. Total Value 63,000 · Mill Levy 14.483 . Address: 17697 W PARKS HWY Acres: 30.28 original: · Place Name: CITY OF HOUSTON . Map Number: HO 5 T/R/S: S 18N03W21 C Tax Roll: REGULAR 2005 :t:otice/BilI.: O~"rmR .Upd: 8/26/02 11:28:22 NMCCASKILL Neighborhood: HOUSTON ItF3=Exit F4=Totals F5=Backward F6=Forward F13=Abort F14=Options · · · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:27:1: Recording District: PALMER Account # 18N03W21C010 Audit 18N03W21C001 POR OF o 1st MCALLEN CHARLIE W 2nd HUBBLE MONTY N 3rd E C/O R Str 2422 TULANE ST S CIS ANCHORAGE AK 99504 Certified 2003 CTY 0040 63,000 Certified 2004 CTY 0040 66,000 Work in Progress 2005 CTY 0040 66,000 66,000 66,000 14.800 .000 30.28 þ .~ t t · · þ · þ · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Address Margaret Bryant 2 Oakes of Wellington 10240 Hendley RD #222 Manassas, VA 20110 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. Land Œì Surface 0 Description of Properties Parcel # Township Section LotlTract# C-8 Range N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes ;60 Activity Description Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property listed above, please indicate your percentage of ownership, . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the ericlosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You mayalso contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. I~tr Day 01 ~ 2004 S¡gned;/W1¡) Jt'-j~!~ Print: ðYì Cl f ålt ('G+-> 13 (' Î a 11 f Contact Phone # 7'01;< b 1- -- ~ s-o ~ Sincerely, r..f1 (1. (](] / Jeff oSbor{l1(/ Asst. Project Manager/Permits Coordinator Fairweather E&P Services Please Sign and Return One Copy · '* · RPR100 · Account # 18N03W21C008 · Audit 18N03W21C001 POR OF . 0 1st BRYANT MARGARET W 2nd · N 3rd . E C/O 2 OAKES OF WELLINGTON R Str 10240 HENDLEY RD # 222 · S CIS MANASSAS VA 20110 . Certified OWNER TAXABLE 2003 CTY 0040 . Land Value 44,700 . Imprv Value Total Value · . Mill Levy 14.483 Address: 17986 W PARKS HWY .Acres: 24.86 Original: 24.86 . Place Name: CITY OF HOUSTON Map Number: HO 5 T/R/S: S 18N03W21 C .Tax Roll: REGULAR 2005 IUPd: 3/01/04 12:20:00 IVANSANT F3=Exit F4=Totals F5=Backward · · · · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:27:13 Recording District: PALMER 12=Comments Exist 44,700 Certified 2004 CTY 0040 62,100 62,100 14.800 Work in Progress 2005 CTY 0040 62,100 62,100 .000 Notice/Bill : 01'~ŒR Neighborhood: HOUSTON F6=Forward F13=Abort F14=Options · I I' I · · · I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner CBMC L TO Address PO Box 101333 Anchorage, AK 99510-1333 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as roiiows. Land ŒI Surface 0 Description of Properties Parcel # Township Range Section Lotrrract# A-1 N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes / no Activity Description Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. ,If you are not 100% owner of property listed above, please indicate your percentage of ownership, . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. Day of 2004 Signed: sincerelY'lrJf rf. tJr:J Jeff OSb~ .". Asst. Project Manager/Permits Coordinator FairweathérE&P Services Print: Contact Phone # Please Sign and Return One Copy · · RPR100 Þ' · Account # 18N03W21A001 Þ 0 1st CBMC LTD · W 2nd MCCARREY J L JR .. N 3rd · E C/O % CORA B MCCARREY · R str PO BOX 101333 It S CIS ANCHORAGE It OWNER TAXABLE . Land Value Imprv Value · Total Value 52,500 · Mill Levy 14.483 .Address: 14701 W HEATH DR Acres: 50.00 Original: · Place Name: CITY OF HOUSTON .Map Number: HÖ 5 T/R/S: S 18N03W21 A Tax Roll: REGULAR 2005 r~otice/Bill: Oi'·i'!û:R IUpd: 3/05/97 13:03:28 SOA Neighborhood: HOUSTON tF3=Exit F4=Totals F5=Backward F6=Forward F13=ADort F14=Options · · · · · · · · I · · · I · · I · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:26:30 Recording District: PALMER 12=Comments Exist AI< 99510 1333 Certified 2003 CTY 0040 52,500 Certified 2004 CTY 0040 72/500 Work in Progress 2005 CTY 0040 72,500 72/500 72,500 14.800 .000 50.00 }, · · I' I · I I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Aug. 6.2004 5:51PM McKinley Capital Management No.9323 p. 2 August 6, 2004 Fairweather E & P Services, Inc. 2000 East 88th Avenue, Suite 200 Anchorage, Alaska 99507 Send by Facsimile: (907) 279-5740 Re: CBMC Ltd. Lot A-I, Townslúp 18N, Range 03W~ Section 21 Houston, Alaska Greet1ngs: Pursuant to your letter of July 12, 2004 to CBMC, Ltd. and my conversation with your offices this date, this is to confirm that Fairweather E&P Services, Inc. does not intend to and will not enter upon the property owned by CBMC, Ltd. as the same is not required for the services whieh your finn is providing AOGCC. Thank you for the courtesy which you afforded me in my telephone conversation this date. jlm10th Þ t Þ · Þ · · þ · · · t ~ It It I · · · · · · · · · · · · · · · · · · · · · · · · · · I Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-574CT land Owner Address Frederick I. & Alvera Alley~ Oè(:~'~iJ.? ¡I PO Box 940291 Houston, AK 99694-0291 Date: Job No.: July 12, 2004 137-100 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as roiiows. land ŒJ Surface 0 Description of Properties Parcel # Township Range Section lotlTract# 0-7 N/A 18N 03W 21 Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes! no Activity Description Proposed activities would require th equipment at or near each well site. wells themselves will be plugged wit A reserve pit located near well #1 wi! Activities are expected to last less th, If you are not 100% owner of proper ur percentage of ownership, . We will obtain permissio e pa les and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or em ail james@fairweather.com enting and excavation I·. 5 well associated debris. The : feet below natural ground level. "I natural ground level. If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. Day of 2004 Signed: Sincerely, ,¿r1 ~ Jeff OSbomV {{/ Asst. Project Manager/Permits Coordinator Fairweather E&P Services Print: Contact Phone # Please Sign and Return One Copy , · RPR100 · . Account # 18N03W21D007 Audit 18N03W21D-6 · 0 1st ALLEY FREDERICK I& ALVERA . W 2nd N 3rd I E C/O . R Str PO BOX 940291 . S CIS HOUSTONAK 99694 0291 Certified I OWNER TAXABLE 2003 CTY 0040 Land Value 25,000 · Imprv value 136,100 · Total Value 161,100 · Mill Levy 14.483 ,Address: 14900 W HEATH DR Acres: 10.00 Original: · Place Name: CITY OF HOUSTON ,Map Number: HO 5 T/RIS: S 18N03W.21 D Tax Roll: REGU~~ .2005 .Upd: 10/0.2/02 8:15:43 MWHEELER .F3=Exit F4=Totals F5=Backward · · · · · · · · · · · · · · · · · · · · · · · · · .. < REAL PROPERTY RECORD> Date 6/04/04 Time 12:27:2" Recording District: PALMER 10.00 27,500 143,300 170,800 14.800 IMP Market Sale ~lotice/:sil1 :: I"'\TATa."I'"C'II'D """v....".....Iò\, Work in Progress .2005 CTY 0040 27,500 146,800 174,300 .000 9/.2001 Neighborhood: HOUSTON F6=Forward F13=Abort F14=Options · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ~\\X··· I\P') f~)( Fairweather E&P Services, Inc. / 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 . Telephone (907) 258-3446 Fax (907) 279-5740 ~ Date: Job No,: July 12, 2004 137-100 Land Owner Dan'I L. Waelbrock Address 24510 SR 9 NE . Arlington, W A 98223 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. . Land ŒJ Surface 0 Description of Properties Parcel # Range Section LotlTract# C-22 C-18 C-11 Township N/A N/A N/A 02W 02W 02W 11 11 11 18N 18N 18N Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes I no Activity Description Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property fisted above, please indicate your percentage of ownership, . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximatè. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a focal cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. ~/;Jff t~eSsed stampeITvelope is enclosed for your convenience, . o Day cry, ~_~' nr SigneÇ I J/ ¿ . ,tJé/~LMt-- .~--.. Sincerely, A'iJ (/ {),9 Pr'· _ ð>J ('f)t:~ brlO elL. Jeff oSborr~ W If.) ,¡;r:\- Asst. Project Manager/Permits Coordinator Contact Phone # I Iv fj Fairweather E&P Services ~ r,~) (¡." Please SiÇJn and RettJrn Onp rnn\l · · RP"R100 · Account # 18N02W11C011 · Audit 18N02W11C-6 . 0 1st WAELBROCK DAN'L L W 2nd HOLDEN JOS W · N 3rd . E C/O R Str 24510 SR 9 NE · S CIS ARLINGTON · OWNER TAXABLE · Land Value · J:mprv Value · Total Value 18,000 · Mill Levy 13.911 .. Address: 6057 W LANCE CJ:R · Acres: 5.00 Original: 5.00 · Place Name: HOUSTON AREA .Map Number: HO 1 T/R/S: S 18N02Wll C Tax Roll: REGUh~~ 2005 .Upd: 8/04/95 13:40:25 J:VANSANT F3=Exit F4=Totals F5=Backward · · · · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:36:07 Recording District: PALMER 12=Comments Exist WA 98223 Certified 2003 NAR 0015 18,000 Certified 2004 NAR 0015 18,000 18,000 14.180 Work in Progress 2005 NAR 0015 18,000 18,000 .000 Notice/Bill: OWNER Neighborhood: WASJ:LLA F6=Forward F13=Abort F14=Options þ · RPR100 Þ Account # 18N02WllC018 Þ Audit 18N02WllC-4 .. 0 1st WAELBROCK DAN L L 'W 2nd HOLDEN JOS W Þ N 3rd E C/O Þ R Str 24510 SR 9 NE Þ S CIS ARLINGTON Þ OWNER TAXABLE · Land Value a Imprv Value .. Total Value Þ 'I Þ~~d;e~:~6060 W BILLIE ~9~~R 'Acres: 5.00 Original: .Place Name: HOUSTON AREA -Map Number: HO 1 T/R/S: S 18N02Wl1 C þTax Roll: REGULAR 2005 Notice/Bill: O~~ÆR .Upd: 8/04/95 13:34:40 IVANSANT Neighborhood: WASILLA F3=Exit F4=Totals F5=Backward F6=Forward F13=Abort F14=Options · · I · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:36:24 Recording District: PALMER 12=Comments Exist WA 98223 Certified 2003 NAR 0015 18,000 Certified 2004 NAR 0015 18,000 Work in Progress 2005 NAR 0015 18,000 18,000 18,000 18,000 14.180 .000 5.00 6/04/04 Time 12:36:31 . PALMER . 12=Comments Exist Work in Progress 2005 NAR 0015 30,000 30,000 000 REAL PROPERTY RECORD > Date Recording District Certified 2004 NAR 0015 30,000 000 14.180 30, 00 C Notice/Bill: OWNER Neighborhood: WASILLA F6=Forward F13=Abort F14=Options J a RPR100 < Þ Account # 18N02WllC022 · Audit 18N02WllC-l0 · 0 1st WAELBROCK DAN'L L · W 2nd HOLDEN JOS W Þ N 3rd · E C/O PR Str 24510 SR 9 NE Þ S C/S ARLINGTON WA 98223 . Certified OWNER TAXABLE 2003 NAR 0015 · Land Value 30,000 I Imprv Value ... Total Value 30,000 · . .M1ll Levy 13.911 ·Address: 6060 W BERNIE CIR 'Acres: 10.00 Original: 10 .Place Name: HOUSTON AREA ,Map Number: HO 1 T/R/S: S 18N02Wll .Tax Roll: REGULAR 2005 aUPd: 8/04/95 13:40:48 IVANSANT F3=Exit F4=Totals FS=Backward · · · · · a · · · · a · · · · · · · · · · I I · · · · · · · · · t · I · · · · · I) · · · I · · · · · · · · · · · · · · · · · · · · .. · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 - --" '¿ \ Date: Job No.: July 12. 2004 137-100 Land Owner Brenda K. Morris Address 6796 N Dan Joe St. Wasilla, AK 99654 Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane wells in the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas Conservation Commission (AOGCC). We respectfully request permission to cross properties owned and/or leased by you and described as follows. Land Œ] Surface 0 Description of Properties Parcel # Section LoUTract# C-5 Township Range N/A 10/11 t8N 02W Do you have any h?zardS or s~nsitiv; areas that we should know ~bout on your property? C!!!JI no l~yesPI::sedescnbe: I. kRtJl;. It t,1l13E¡¿ Þ-1rt¡Vr-J¡N, '"Í}-tjQ.Dlfi1Jt )1-ta-z JO¡4.bfØIít-., APe tJ?t[) DI r;¡)\J);t»~ L ð--"A-18 J IV .s/--r¡z- XÞt/11 L.coJ.¿)JJa -JD 11),...')_1 OJ" t c IVI y escnp Ion I I..) ~"' 'f.)IV Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleanee! up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you are not 100% owner of property listed above, please indicate your percentage of ownership, Jj)...~;:;;J. We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or em ail james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. i ~ Day ofj' 'l",t/-" 2004 Signed: ·~}'P-VV~...... -'rn ~~<O Print: .~ 'ß- ¡;:;\.':k;'=lcA.. VVt. D ¡Q. ïQ. ; .s /' Contact Phone # '\ t> t\ .- '?:.,-~7 -""'1 (?â1-":-> Sincerely, X'4f/ t. t7P Jeff OSbornlj //1 ÄSst. Project Manager/Permits Coordinator Fairweather E&P Services Please Sign and Return One Copy .. t 'RPR1 0 0 · Account # 18N02W11C005 · Audit 18N02W11C-2 . 0 1st MORRIS BRENDA K W 2nd · N 3rd E C/O I R Str 6796 N DAN · S CIS WASILLA · OWNER TAXABLE · Land Value . :Imprv Value Total Value · . Mill Levy 13.911 Address: 6796 N DAN JOE ST .Acres: 10.00 Original: 10.00 .. Place Name: HOUSTON AREA -Map Number: HO 1 T/R/S: S 18N02W11 C · Tax Roll: REGULAR 2005 .Upd: 10/06/03 13:46:37 MWHEELER F3=Exit F4=Totals F5=Backward Ii · · · · · · · · · · · · · · · · · · it · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:36:15 Recording District: PALMER 12=Comments Exist JOE ST AK 99654 Certified 2003 NAR 0015 401000 14.180 LOS Market Sale Work in Progress 2005 NAR 0015 40,000 40,000 .000 2/2000 40,000 Certified 2004 NAR 0015 40,000 40,000 Notice/Bill: OWNER Neighborhood: WAS:ILLA F6=Forward F13=Abort F14=Options þ þ þ þ þ þ þ · I · · · · · · þ · t · · · · · · · · · · · · · · · · · · - · · · · · · Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200, Anchorage, Alaska 99507 Telephone (907) 258-3446 Fax (907) 279-5740 Date: Job No.: July 12, 2004 137-100 Land Owner Robt W. & Sandra L. Teeling Address 6059 W. Bernie Cir. Wasilla, AK 99654 '", " . \", ".<.\ "~... \ . ¡ \ Fairweather E&P Services is proposing to permanently plug and abandon five coal bed methane welliín AUe 1 32(J(J4 ;;;) the Houston area on behalf of the State of Alaska Department of Administration Oil & Gas ConservatiÒ{l;< ~?ï Commission (AOGCC). We respectfully request permission to cross properties owned ';~~?S; f1.K gpfJ../ and/or leased by you and described as follows. -. .---- Land ŒI Surface 0 Description of Properties Parcel # Section LotlTract# C-20 Township Range N/A 02W 10/11 18N Do you have any hazards or sensitive areas that we should know about on your property? If yes please describe: yes / no Activity Description Proposed activities would require the mobilization and use of well cementing and excavation equipment at or near each well site. Each site will be cleared of all gas well associated debris. The wells themselves will be plugged with cement and buried at least four feet below natural ground level. A reserve pit located near well #1 will be cleaned up and backfilled to natural ground level. Activities are expected to last less than two weeks from start to finish. If you' are not 100% owner of property listed above, please indicate your percentage of ownership, (() . We will obtain permission from the other interested parties and will indemnify you from all claims and damages that might result from our work by virtue of your permission herein granted. Work locations shown on the enclosed plat (or map) are approximate. If you should have any questions or comments, please contact me at (907) 258-3446 or email josborne@fairweather.com. You may also contact James Nunley at a local cell number (907) 232-9952 or email james@fairweather.com If this request meets with your approval, please so indicate by signing and returning one copy of this letter. A self addressed stamped envelope is enclosed for your convenience. Day of A~,_' 2004 R.~ì -j-~ Print: ~~~~ ~J\~~\\~ Contact Phone # 31 b-.Àl\1 tD Sincerely. A'$ t!. /2¡:;l Jeff OsborneU t1. Asst. Project Manager/Permits Coordinator Fairweather E&P Services Signed: Please Sign and Return One Copy I · RPR100 . Account # 18N02WIIC020 · Audit 18N02WIIC-I0 · 0 1st TEELING ROBT W & SANDRA L · W 2nd · N 3rd .- E C/O R Str 6059 W BERNIE CIR · S CIS WASILLA AK 99654 Certified . OWNER TAXABLE 2003 NAR 0015 · Land Value 36,000 I Imprv value 61,000 Total Value 97,000 · IMil1 Levy 13.911 Address: 6059 W BERNIE CIR .Acres: 10.00 original: 10.00 'Place Name: HOUSTON AREA Map Number: HO 1 T/R/S: S 18N02Wll C .Tax Roll: REGULAR 2005 .UPd: 2/05/04 10:30:44 MBUCK F3=Exit F4=Totals F5=Backward · · · · · · · · · · · · · · · · · · · · · · · · · · < REAL PROPERTY RECORD> Date 6/04/04 Time 12:36:37 Recording District: PALMER Certified 2004 NAR 0015 36,000 84,300 120,300 14.180 LOS Market Sale Work in Progress 2005 NAR 0015 36,000 86,200 122,200 .000 11/1982 Notice/Bill: OWNER Neighborhood: WASILLA F6=Forward F13=Abort F14=Options þ þ þ þ þ þ · · t · · · · , · þ · · · · · · · · · · · · I · · I · t · · · · · · · · · - fI"I'II" - 1""1II ~ .-.. --...¡ -- --.... irt¡,~ _ _ It¡, E & P SERVICES, INC. September 21, 2004 Ron Swanson, Director Department of Community Development Matanuska-Susitna Borough 350 E. Dahlia Avenue Palmer, Alaska 99645 RE: Plug and Abandonment of the Houston No. 22 Coal Bed Methane Gas Well Dear Mr. Swanson: Please find enclosed the Completion Report for the final abandonment ofthe Houston No. 22 well. This well was located on Matanuska-Susitna Borough land in Section 9, Township 18 N, Range 3W, Seward Meridian. Fairweather completed this project on August 30, 2004 on behalf ofthe Alaska Oil and Gas Conservation Commission (AOGCC). Fairweather will forward you a copy of the overall project report after it has been submitted to the AOGCC. Please contact the undersigned if you have any questions or require any additional information. Sincerely, FAIRWEATHER E&P SERVICES, INC. ~ Jesse Mohrbacher President cc: Bob Crandall, AOGCC 2000 East 88th Avenue· Anchorage, Alaska 99507 . (907) 258-3446 . FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505 . Houston, Texas 77060 . (281) 445-5711 . FAX (281) 445-3388 I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Appendix B APPLICATIONS FOR SUNDRY APPROVALS Abandon l::J Alter càsÎng 0 Change approved program 0 2. Operator Name: Growth Resources Intemationall AOGCC 3. Address: · · ... ' · · 1. Type of Request: · STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend U Repair well 0 Pull Tubing 0 Perforate U Waiver U Annular Dispos. U Stimulate 0 Time Extension 0 Other 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Development Stratigraphic o o 6. API Number: 50-009-20009-00 Exploratory 0 Service 0 197-241 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 7. KB Elevation (ft): 8. Property Designation: 11. Total Depth MD (ft): 1730 Casing Structural Conductor Surface Intermediate Production Liner erforation Depth MD (ft): None ackers and SSSV Type: 9. Well Name and Number: Ground Level Houston No. 1 10. Field/Pool(s): ITotal Depth TVD (ft): 1730 Length PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): / Effective Depth TVD (ft): , 240 240 Size MD TVD Plugs (measured): 240'-840' Burst /JUnk (measured): none Collapse 36 10" 36 492 7" 492 1600 4.5" 1600 36 492 NA NA NA NA 1600 NA NA perfOration Depth TVD (ft): ITubing Size: Tubing Grade: Packers and SSSV MD (ft): Tubing MD (ft): 2. Attachments: Description Summary of Proposal U etailed Operations Program 0 BOP Sketch 0 4. Estimated Date for 'ommencing Operations: 6. Verbal Approval: om mission Representative: 7. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jesse Mohrbacher rinted Name Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. 15-Aug-04 Date: 13. Well Class after proposed work: Exploratory 0 Development 0 Service 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ 0 WINJ 0 WDSPL 0 ~~~hone 907-258-3446 Date COMMISSION USE ONLY 28-Jul-04 nditions of approval: Notify Commission so that a representative may witness SUndry Number: o ubsequent Form Required: . . BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 COMMISSIONER BY ORDER OF THE COMMISSION Date: Form 10-403 Revised 12/2003 Submit in Duplicate INSTRUCTIONS ON REVERSE I · I- I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · t · · · · · · · · · Houston No.1 Plug and Abandonment Procedure Well Status Houston No. 1 is suspended with a 10 inch conductor driven to 36 feet, 7 inch surface casing set at 492 feet and cemented to surface, and 1680 feet of 4 ~ inch casing cemented ftom TD to surface. Available information indicates that a cement plug was placed in the well ftom 240 to 840 feet. There is no record of the well ever being perforated, or having the shoe drilled out for production or testing purposes. Attachment 1 shows the present status of the Houston No.1 well. Operations Procedure Fairweather's proposed P&A procedure for the Houston No.1 well is presented below and depicted in Attachment 2. 1. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and provide the AOGCC inspector the opportunity to witness cementing operations. 2. Mobilize any additional equipment and personnel needed to location such as a JD 450 dozer. 3. Open valves at surface to verify well IS dead, install gauges as needed for monitoring. Bleed off any pressure. 4. Remove blind flange ftom top of well. 5. . RU boom truck and Rlli with small tubing and tag TOC at 240 feet. 6. RU batch cementing unit. Mix and pump 15± ppg, Type I cement plug ftom 240 feet to surface. Collect returns in vac truck. 7. Clean up cementing equipment and recover cement rinse water for future reuse or treatment and disposal. WOC. 8. Excavate around well to six (6) feet, cut off casing strings a minimum of four (4) feet below grade level and weld on well ill marker plate. Top off 7 x 4-1/2 inch annulus with cement if necessary prior to installing well marker plate. . 9. Backfill well excavation and 10 x 10 x 3 foot depression immediately west of the well pad and grade location to blend in with surroundings and provide positive drainage. 10. Pick up any debris and move necessary equipment to the Houston No.2 location. · · ., · · .AII depths BGL · · · GL _______ · · · · · · · · · · · · · · · · · · · · · · · · · · · 4.5" casing @ 160~ · .' · · · · · 10" Conductor Driven @ 36' 7" casing @ 492' cmtd to surface Houston # 1 Fairweather E & P Services. Inc. Attachment 1 GRllnc. c/o AOGCC Houston # 1 Well Schematic Permit # 197-241 API # 50-009-20009-00 Present Status, June 2, 2004 - Cement plug 240' to 840' [J, , "," " -__-:·.:.i:..7:'"'" - -+ Water/Formation Fluid ~'''.'''' .::~T;~':_~_-_·o~· ~~t~f~:i~;:!: Cement TD @ 1730' Rev. 01 IN 07/21/04 Drawing Not to Scale James Nunley 712812004 · I I· I · '" depths BGL · I I · · · · · 10" Conductor · Driven @ 36' · · · · · · · · · · 7" casing @ 492' · cmtd to surface · · · · · · · · · · 4.5" casing @ 1600' · · I · · · I GL ~ _._-- Casing Strings capped w/1S" diameter X 1/4" steel plate @ 4' BGL Houston # 1 Attachment 2 GRllnc. c/o AOGCC Houston # 1 Well Schematic Permit # 197-241 API # 50-009-20009-00 Proposed Abandonment Status 15 PPG +1- Type I cement from 240' to surface - Existing Cement plug 240' to 840' TD @ 1730' Fairweather E & P Services. Inc. Water/Formation Fluid Cement Rev. 01 IN 07/21/04 Drawing Not to Scale James Nunley 7/2812004 Abandon l:J Alter casing 0 Change approved program 0 · 2. Operator Name: · Growth Resources International I AOGCC · 3. Address: 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 7. KB Elevation (ft): · · · · · 1. Type of Hequest: · 8. Property Designation: 11. Total Depth MD (ft): 2105 Casing Structural Conductor Surface Intermediate Production Uner Perforation Depth MD (ft): None ""';" STATE OF ALASKA ALASKA 6ii'ÄND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Annular Dispos. U Other 0 Suspend U Repair well 0 Pull Tubing 0 Perforate U Waiver U Stitnulaté-D Tirne Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Development Stratigraphic o o Exploratory 0 Service 0 6. API Number: 50-009-20010-00 197-242 9. Well Name and Number: Ground Level Houston No. 2 10. Field/Pool(s): Total Depth TVD (ft): 2105 Length PRESENT WELL CONDITION SUMMARY IEffectiVe Depth MD (ft): IEffective Depth TVD (ft): 2105 2105 Size MD TVD IPlugs (measured): none Burst IJUnk (measured): none Collapse 462 462 462 NA NA 7" 1662 4.5" 1662 1662 NA NA I Perforation Depth TVD (ft): None ITubing Size: ITubing Grade: Packers and SSSV MD (ft): ITubing MD (ft): 2. Attachments: Description Summary of Proposal U tailed Operations Program 0 BOP Sketch 0 14. Estimated Date for ommencing Operations: .6. Verbal Approval: mmission Representative: 7. ·1 hereby certify that the foregoirigis true and correct to the best of my knowledge. Contact Jesse Mohrbacher rinted Name Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. 15-Aug-04 Date: 13. Well Class after proposed work: Exploratory 0 Development 0 Service 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ 0 WINJ 0 WDSPL 0 /__~~Phone 907-258-3446 Date COMMISSION USE ONLY 28-Jul-04 nditions of approval: Notify Commission so that a .representative may witness Sundry Number: o ubsequent Form Required: . . BOP Test 0 Mechanical Integrity Test 0 Location Clearance 0 COMMISSIONER BY ORDER OF THE COMMISSION Date: Form 10-403 Revised 12/2003 INSTRUCTIONS ON REVERSE Submit in Duplicate · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · a Houston No.2 Plug and Abandonment Procedure Well Status Houston No.2 is reported to be suspended with 7 inch casing set at 462 feet and cemented back to surface, 4-~ inch casing set and cemented back to surface ftom 1662 feet, and the 4-~ inch shoe drilled out for a final TD of 2105 feet. While not in the records, the well was completed at one time with tubing and a submersible pump according to interviews of persons familiar with the project. The pump was used to de- water the well for gas production but due to excessive water production, attempts at doing so were abandoned and the pump and tubing were removed. The well is currently suspended with a blind flange at surface and wing valves that provide access to the 4-1/2 inch casing. Attachment 1 shows the present status ofthe Houston No.2 well. Operations Procedure Fairweather's proposed P&A procedure for the Houston No.2 well is presented below and depicted in Attachment 2. 1. VerifY all pennit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and provide the AOGCC inspector the opportunity to witness cementing operations. 2. Open valve(s) to verify the well is dead. h1stall gauges as necessary for monitoring and bleed offany surface gas. 3. RU batch cementing equipment and triplex pump, initiate injection test for bullheading cement using cement rinse water ftom Houston No.'s 4, 22 and 1. When injectivity is verified (2 casing volumes or 56 barrels of water minimum), mix and bullhead 28 bbls of 15± ppg, Type I cement to fill casing ftom TD to surface. WOC. 4. RD cementing equipment and clean up same. Recover rinse water in storage tank for later use in injection test on Houston No.3. 5. Excavate around well to six (6) foot depth, cut off casing strings a minimum of 4 feet below grade level and weld on well ill marker plate. Top off annulus with cement if necessary before installing marker plate. Backfill the well excavation and grade location to blend in with surroundings and provide positive drainage. 6. Pick up any debris and move necessary equipment to the Houston No.3 location. 7. Perfonn site clearance inspection with AOGCC inspector at time of mutual convemence. þ · · · tAli depths6ßL, t · IÞ · GL ~ · · · · · · · · It · · · · · · · · · · · · · · · · 4.5" casing @ 1662' · cmtd to surface - · · · · · · · · 7" casing @ 462' cmtd to surface Houston # 2 .. :f-l r{ ----- .·c·.. -~> ;; .; TD @ 2105' Fairweather E & P Services. Inc, Attachment .1 GRllnc. c/o AOGCC Houston # 2 Well Schematic Permit # 197-242 API # 50-009-20010-00 Present Status, June 2, 2004 Fluid level in 4.5" casing unkown -+ Cement I? ,:<1 -+ Formation fluid/water Rev. 01 IN 07/21/04 Drawing Not to Scale James Nunley 7/2812004 · · · · · All depthsBGL · · GL ---- · · · · · · · · · · · · · · · · · · · · · · · · · · · 4.5" casing @ 1662' · cmtd to suñace - · · · · · · · · Casing Strings capped wI 18" diameter X 1/4" steel plate @ 4' BGL 7" casing @ 462' cmtd to surface Houston # 2 TD @ 2105' Fairweather E & P Services, Inc. Attachment 2 GRllnc. c/o AOGCC Houston # 2 Well Schematic Permit # 197-242 API # 50-009-20010-00 Proposed Abandonment Status Well never peñorated ~~";' $ç.. ~_ t ".".,~~. ~:.t~L~~?:}· ---+ Rev. 01 IN 07/21/04 Cement Drawing Not to Scale James Nunley 712812004 Abandon ~ Alter casing 0 · Change approved program 0 · 2. Operator Name: · Growth Resources International I AOGCC 3. Address: .333 W. 7th Ave, Suite 100 Anchorage, AK 99501 .7. KB Elevation (ft): · · · · .L : 1. Type of Req""t 8. Property Designation: 11. Total Depth MD (ft): 2030 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): 1338-1342,1356-1362,1507-1512, 111'0-111'11 111411-111511 ackers and SSSV Type: ~. STATE OF ALASKA ALASKA olfAND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 MC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend U Repair well 0 Pull Tubing 0 Perforate U Waiver U Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Annular Dispos. U Other 0 Development Stratigraphic o o Exploratory 0 Service 0 6. API Number: 50-009-20011-00 197-243 9. Well Name and Number: Ground Level Houston No. 3 10. Field/Pool(s): Total Depth TVD (ft): 2030 Length PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): I Effective Depth TVD (ft): 2030 2030 Size MD TVD Plugs (measured): none Burst /JUnk (measured): none Collapse 505 505 NA NA 7" 505 2002 2002 2002 NA NA 4.5" \perfOration Depth TVD (ft): ITubing Size: ITubing Grade: 1338-1342,1356-1362,1507-1512,1820- NOne NA 111'11 111411-111511 Packer @ 1900' with LH driven Kudu pump for Packers and SSSV MD (ft): below packer H20 disposal. rUbing MD (ft): Packer@ 1900'with LH driven Kudu pump for below packer H20 disposal. Description Summary of Proposal U Detailed Operations Program 0 BOP Sketch 0 4. Estimated Date for mmencing Operations: 6. Verbal Approval: ommission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jesse Mohrbacher rinted Name Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. ignature ~~k ___ Phone 907-258-3446 Date 7 - COMMISSION USE ONLY 15--Aug-04 Date: 13. Well Class after proposed work: Exploratory 0 Development D Service 0 15. Well Status after proposed work: Oil D Gas 0 Plugged 0 Abandoned 0 WAG D GINJ 0 WINJ 0 WDSPL D 28-Jul-04 onditions of approval: Notify Commission so that a representative may witness Sundry Number: o bsequent Form Required: . .. BOP Test 0 Mechanical Integrity Test 0 Location Clearance D COMMISSIONER BY ORDER OF THE COMMISSION Date: Form 10-403 Revised 12/2003 INSTRUCTIONS ON REVERSE Submit in Duplicate · · .~ · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston No.3 Plug and Abandonment Procedure Well Status Houston No.3 is reported to be completed with 7 inch surface casing set and cemented from 505 feet to surface. A 4-~ inch production casing string was run, set and cemented back to surface from 2002 feet. A CBL indicates that the well is cemented with good bonding evident from 2002 feet to 1000 feet, and from 760 feet to surface. The interval from 760 feet to 1000 feet does not appear to be cemented. The well was perforated with a series of five (5) sets of perforations from 1338 feet to 1856 feet. The shoe was drilled out, a packer was set at 1900 feet and a progressive cavity pump was hung off in the packer. Records indicate a tubingless completiO'n. Centralized reverse threaded sucker rods were then run from surface to the pump as a drive shaft. The scheme was to dewater the coals in the perfO'rated zones and pump them for disposal into a Tyonek sandstone penetrated by the openhole wellbore below the shoe. The packer set at 1900' was intended to be the sealing element to' prevent water from loading up the gas producing interval represented by the perforations. The well has been shut in for several years and was recorded to' have 50 psi on the wellhead in 2002. Attachment I shows the present status of the HO'uston No. 3 well. Fairweather's inspection of the Houston No.3 well on June 2, 2004 confrrmed some of the information presented in RFP AOGCC - 0501 although the well house was locked prohibiting entry. Operations Procedure Fairweather's proPO'sed P&A procedure for the Houston No.3 well is presented below and depicted in Attachment 2. 1. Verify all permit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operatiO'ns and provide the AOGCC inspector the opportunity to witness cementing O'perations. 2. RU boom truck and remO've well-house, surface production equipment, electrical equipment and surface mO'unted KUDU Progressive Cavity Pump drive unit. 3. Inspect gauges fO'r functionality and pressure on wellhead. 4. Bleed off any surface gas on the well ensuring that no ignition sources are present. The well is anticipated have 50 psi at the wellhead. Well records previously reviewed by Fairweather indicate maximum pressure at between 50 and 100 psi. The well has been shut in for approximately four (4) years and has no doubt received some inflow of water into the wellbore. With the top O'f perfO'rations at 1338 feet, an 8.33 ppg kill fluid (fresh water) would exert 580 psi at the top perforations, which will likely kill the well. 1 I I I- I I · I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5. RU batch cementing equipment and triplex pump, initiate injection test for bullheading cementusifig cement rinse water from Houston No.2 and fresh water. When injectivity is verified (2 casing volumes or 60 barrels minimum), mix and bullhead 29 bbls of l5± ppg, Type I cement to fill casing from TD to surface. WQC. 6. RD cementing equipment and clean up same. Recover cement rinse water in storage tank for treatment and disposal or recycle. 7. Excavate around well to six (6) foot depth, cut off casing strings a minimum of 4 feet below grade level and weld on well ill marker plate. Top off annulus with cement if necessary before installing marker plate. Backfill well excavation and grade location to blend in with surroundings and provide positive drainage. 8. Pick up any debris and demobilize equipment from the location. 9. Perfonn site clearance inspection with AOGCC inspector at time of mutual convemence. 2 · · .. · · .AII depths BGL · · · GL ~ · · · · · · · · · · · · · · · · · · · · · · · · · · · . 4.5" casing @ 2002' cmtd to 1000' - · · · · · · 7" casing @ 505' cmtd to surface 1000' Houston # 3 ----- Attachment 1 GRllnc. c/o AOGCC Houston # 3 Well Schematic Permit # 197-243 ............ - API # 50-009-20011-00 Present Status, June 2,2004 Solid steel rod rotary drive string Fluid level in 4.5" casing unkown Stage collar @ 760' cmtd to surface Perfs @, 1338' -1342' 1356' . 1362' 1507' -1512' 1820' ·1826 1848' -1856 LH turn rod driven Kudu pump Packer @ 1900' 6ìJ D Rev. 01 IN 07/21/04 I Cement TD @ 2030' Formation fluid/water Fairweather E & P Services. Inc. Drawing Not to Scale James Nunley 7/28/2004 · · · · · · All depths BGL · GL --- · · · · · · · · · · · · · · · · · · · · · · · · · · · · · . 4.5" casing @ 2002' cmtd to 1000' - · · · · · · Casing Strings capped w/1S" diameter X 1/4" steel plate @ 4' BGL 7" casing @ 505' cmtd to surface 1000' Houston # 3 TD @ 2030' Fairweather E & P Services. Inc. Attachment 2 GRllnc. c/o AOGCC Houston # 3 Well Schematic Permit # 197-243 API # 50-009-20011-00 Proposed Abandonment Status Solid steel rod rotary drive string 15 PPG +1- Type I cement from 1856' to surface Stage collar @ 760' cmtd to surface Perforations @ 1338' . 1342' 1356' -1362' 1507' -1512' 1820' -1826 1848'-1856 LH turn rod driven Kudu pump Packer @ 1900' g;,.'..CSi:t·.", ':<', '" .~..,..,~;., \-...-~-;>~~<. [I] Rev. 01 IN 07/21/04 I Cement Formation fluid/water Drawing Not to Scale James Nunley 7/2812004 · .~ · · · 1. Type of Request: .. Abandon L:J Alter casing 0 Change approved program 0 · 2. Operator Name: · Growth Resources International I AOGCC 3. Address: · 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 7. KB Elevation (ft): Ground Level 8. Property Designation: 11. Total Depth MD (ft): 478 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): Total Depth TVD (ft): 478 Length 78 STATE OF ALASKA ALASKA 0 AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend U Repair well 0 Pull Tubing 0 Perforate U Waiver U Stimulate 0 Time Extension 0 Re-enter Suspended Well 0 5. Permit to Drill Number: Annular Dispos. U Other 0 Development Stratigraphic o o Exploratory 0 Service 0 6. API Number: 50-009-20012-00 197-244 9. Well Name and Number: Houston No.4 10. Field/Pool(s): PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): I Effective Depth TVD (ft): 105 105 Size MD TVD Plugs (measured): none Burst IJUnk (~easured): none Collapse 8" NA 78 78 NA I Perforation Depth TVD (ft): ackers and SSSV Type: rUbing Size: . Tubing Grade: Packers and SSSV MD (ft): Tubing MD (ft): 2. Attachments: Description Summary of Proposal U etailed Operations Program 0 BOP Sketch 0 14. Estimated Date for 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jesse Mohrbacher rinted Name Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. PJ:\one 907-258-3446 Date COMMISSION USE ONLY ommencing Operations: 6. Verbal Approval: om mission Representative: ~~4-£/~ 15-Aug-04 Date: 13. Well Class after proposed work: Exploratory 0 Development 0 Service 0 15. Well Status after proposed work: Oil 0 Gas 0 Plugged 0 Abandoned 0 WAG 0 GINJ D WINJ 0 WDSPL D 27 -Jul-04 nditions of approval: Notify Commission so that a representative may witness o BOP Test D ubsequent Form Required: · Form 10-403 Revised 12/2003 Sundry Number: Mechanical Integrity Test D Location Clearance 0 COMMISSIONER BY ORDER OF THE COMMISSION Date: INSTRUCTIONS ON REVERSE Submit in Duplicate þ .~ .' · · · · t · · · · · · · · · · · It · · · · · · · · · · · · · · · · · · · · · · · · ., Houston No.4 Plug and Abandonment Procedure Well Status Houston No.4 was suspended with an 8 inch conductor casing driven to 78 feet. The hole was then drilled to 478 feet when the project was abandoned due to the unfavorable lithology encountered. The well at the surface consists of just the 8 inch conductor above grade with a plastic bucket covering it. Fairweather inspected this site on June 2, 2004 and measured the depth to water and fill in the well at 15 and 104 feet, respectively. Attachment 1 shows the present status of the Houston No.4 well. Operations Procedure Fairweather's proposed P&A procedure for the Houston No.4 well is presented below and depicted in Attachment 2. 1. Verify all pennit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and provide the AOGCC inspector the opportunity to witness cementing operations. 2. Mobilize necessary equipment and personnel to location. Verify well is dead and check for gas around well with gas detector. 3. Rill with small tubing to TD/filllevel at 105± feet BGL. 4. RU batch cementing unit. Mix and pump 3o± sack, 15± ppg, Type I cement plug rrom 105 feet to surface. Collect returns in vac truck for later disposal in Houston No. 3 well. Hang off tubing and cement same in place or recover for future use depending on cementing conditions. 5. Clean up cementing equipment and recover cement rinse water for future reuse or treatment and disposal. wac. 6. Excavate around casing to six (6) feet, cut off casing a minimum of four (4) feet below grade level and weld on well ill marker plate. Backfill well excavation and grade for positive drainage. 7. Pick up any debris and demobilize equipment to the next well in the program, most likely Houston No. 22. 8. Perfonn site clearance inspection with AOGCC inspector at time of mutual convenience. 1 I: 1 1 1 :AlI depths BGL 1 · GL ~ · · Fluid @ 15' +. · · · · · · · · · · · · 8" Casing · Driven @ 78' · · Fill level @ 105' · (as of June 2, 2004) · · · · · · · · 0 · pen Hole · · · · · · · Houston # 4 Attachment 1 GRllnc, c/o AOGCC Houston # 4 Well Schematic Permit # 197-244 ~ API # 50-009-20012-00 Open Top ---- ........... Present Status, June 2, 2004 TD @ 478' ~ L.J II Fairweather E & P Services. Inc. Rev. 01 IN 07/21/04 Formation fluid/water Fill Drawing Not to Scale James Nunley 7/28/2004 · .: · · · · · All depths BGL · · GL___ · · · · · · · · · · · · · · · · · · · · · · · · · · Open Hole · · · · · · · · · 8" casing capped wI 18" diameter X 1/4" steel plate @ 4' BGL 8" Casing Driven @ 78' Fill level @ 105' (as of June 9, 2004) Houston # 4 -----... TD @ 478' Fairweather E & P Services. Inc. Attachment 2 GRllnc. c/o AOGCC Houston # 4 Well Schematic Permit # 197-244 - API # 50-009-20012-00 Proposed Final Abandonment Status 15 PPG +/- Type I cement in 8 5/S" casing Cement Ð- Fill Rev. 01 IN 07/21/04 Drawing Not to Scale James Nunley 7/2812004 þ · þ þ · 1. Type of Request: · · þ · · · · It 8. Property Designation: · It · · t- · · · Liner · Perforation Depth MD (ft): · · Packers and SSSV Type: Abandon ~ Alter casing 0 Change approved program 0 2. Operator Name: Growth Resources Intemational I AOGCC .~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 AAC 25.280 Operational shutdown U Plug Perforations 0 Perforate New Pool 0 4. Current Well Class: Suspend LJ Repair well 0 Pull Tubing 0 Perforate U Waiver U Annular Dispos. U Stimulate 0 Time Extension 0 Other 0 Re-enter Suspended Well 0 5. Permit to Drill Number: 3. Address: 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 7. KB Elevation (ft): Development Stratigraphic o o Exploratory 0 Service 0 200-242 6. API Number: 50-009-20018-00 9. Well Name and Number; Ground Level Houston No. 22 10. Field/Pool(s): 11. Total Depth MD (ft): 513 Casing Structural ITotal Depth TVD (ft): 513 Length PRESENT WELL CONDITION SUMMARY I Effective Depth MD (ft): I Effective Depth TVD (ft): . 220 I 220 Size MD TVD /Plugs (measured): nene Burst IJUnk. (measured): Obstruction 220 ft Collapse Surface 76 513 10· 8-5/8" 76 513 76 513 NA NA NA NA Conductor Intermediate Production None I Perforation Depth TVD (ft): ITubing Size: Tubing Grade: Packers and SSSV MD (ft): Tubing MD (ft): .t 12. Attachments: Description Summary of Proposal U Detailed Operations Program [2] BOP Sketch 0 · 14. Estimated Date for · Commencing Operations: · 16. Verbal Approval: · Commission Representative: 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jesse Mohrbacher · Printed Name . Jesse Mohrbacher Title President, Fairweather E&P Services, Inc. · Signature Phone 907-258-3446 Date COMMISSION USE ONLY 15-Aug-04 Date: 13. Well Class after proposed work: Exploratory . [2] Development 15. Well Status after proposed work: Oil 0 Gas 0 WAG 0 GINJ 0 o Service 0 Plugged WINJ o Abandoned o WDSPL o o 28-Jul-Q4 · · Conditions of approval: · · Plug Integrity 0 · Other: Notify Commission so that a representative may witness Sundry Number: BOP Test 0 Mechanical Integrity Test o Location Clearance 0 Subsequent Form Required: Approved by: COMMISSIONER BY ORDER OF THE COMMISSION Date: ... ~"rm 1 O.A.r)"! Rø"ic:",rl 1 ?/?OO::\ IM<::TRIIf'TI('\'I<' n" ,..,.-".-....",... · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · .~ '"-~ Houston No. 22 Plug and Abandonment Procedure Well Status Houston No. 22 is suspended with 10 inch conductor driven to 76 feet and 8-5/8 inch surface casing set at 513 feet. The well was not perforated or completed. An unknown obstruction was discovered at approximately 220 feet when an attempt was made to run cased hole wireline logs. There is no wellhead on the well, only a steel plate partially welded over the top of the 8-5/8" casmg. Fairweather's inspection of the well on June 2, 2004 indicated that the 10 x 8-5/8 inch annulus is dry at the surface with some debris in the annulus at depths below visible range due to the 8-5/8 inch casing being wedged off center :from the 10 inch conductor. Water is present in the 8-5/8 inch casing near the surface and the steel plate cap is not sealed. Attachment 1 shows the present status of the Houston No. 22 well. Operations Procedure· Fairweather's proposed P&A procedure for the Houston No. 22 well is presented below and depicted in Attachment 2. 1. Verify all pennit paperwork is in place and give AOGCC 24 hour notice of intent to begin well work operations and provide the AOGCC inspector the opportunity to witness cementing operations. 2. Mobilize necessary equipment and personnel to location. Verify well is dead and check for gas around well with gas detector. 3. RU boom truck and remove steel cap :from top of casing. RIH with small tubing to the obstruction at 220 feet. 4. RU batch cementing unit. Mix and pump 15± ppg, Type I cement plug :from 220 feet to surface. Collect returns in vac truck for later disposal in Houston No. 3 well. Hang off tubing and cement same in place or recover for future use depending on cementing conditions. 5. Fi1110 x 8-5/8 inch annulus with cement to surface. 6. Clean up cementing equipment and recover cement rinse water for future reuse or treatment and disposal. WOC. 7. Excavate around casing to six (6) feet, cut off casing a minimum of four (4) feet below grade level and weld on well ill marker plate. Backfill well excavation and grade for positive drainage 8. Pick up any debris and demobilize equipment to the Houston No. 1 location. 9. Perform site clearance with AOGCC inspector after P&A operations and at a time of mutual convemence. ., · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · All depths BGL 8 518" casing capped wUh 1/4" steel plate (unsealed) GL _______ ---- ----- Water @ 15' +- 10" Casing Driven @ 76' I l'i ~ Unknown _I Obstruction @ 220' ~ '~ ." 8 5/8" Casing @ 513' . Houston # 22 Fairweather E & P Services. Inc. --...:--.... Attachment 1 GRllnc. c/o AOGCC Houston # 22 Well Schematic Permit # 200-242 API # 50-009-20018-00 Present Status, June 2, 2004 TOC in 10" X 8518" annulus unknown No Perforations in Well Rev. 01 IN 07/21/04 Water Cement Drawing Not to Scale · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · "- All depths BGL GL --- Casing Strings capped wI 18" diameter X 1/4" steel plate @ 4' BGL ---... 10" Casing Driven @ 76' 8 5/8" Casing @ 513' . Houston # 22 Fairweather E & P Services, Inc. Attachment 2 GRllnc. clo AOGCC Houston # 22 Well Schematic Permit # 200-242 ~ API # 50-009-20018-00 Proposed Abandonment Status 15 PPG +1- cement in 10" X 8 5/8" annulus @ surface 15 PPG +/- Type I cement In 8 518" casing TOC in 10" X 8 5/8" annulus unknown No Perforations in Well Water Cement Rev. 01 IN 07/21/04 Drawing Not to Scale James Nunley 7/2812004 II' · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Appendix C LANDFILL APPROVAL · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · MATANUSKA-SUSITNA BOROUGH Public Works Department Solid Waste Division 350 East Dahlia Avenue · Palmer, AK. 99645 Phone (907) 746-2841 · Fax (907) 746-2847 E-MAIL: Ggoodale@matsugov.us Celehrating40 Years! - 1964-2004 August 12, 2004 Jesse Mohrbacher Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200 Anchorage, AK. 99507 Dear Jesse, I have received your letter requesting disposal of bentonite and barite. After reviewing the MSDS sheets you attached with your request is appears that this material will be acceptable for disposal at the Central landfill at a cost of $50 per ton. You must present a copy of this letter to the scale house attendant at the time of disposal. If you have any questions feel free to call (907-746-2841). Sincerely, Greg Goodale, Solid Waste Division Manager Appendix D SOLID WASTE DISPOSAL PLAN , I I ~ ~ · ~ þ þ þ þ · þ þ þ · · · · · þ þ þ þ · þ þ · þ ... þ þ þ · þ þ þ · · þ þ þ þ þ · þ · · · · Þ t Þ · Þ Þ · · · · · þ · · · · , · · · · · · · Alaska on and Gas Conservation Commission Houston No.1 Solid Waste Disposal Plan Houston, Alaska Project Background and History The Houston No.1 reserve pit closure project is part of a well plugging and abandonment (P&A) and site clearance program for the Growth Resources International Inc. (GRl) Houston well No.'s 1,2, 3, 4, and 22 wells. The project is being executed by Fairweather E&P Services, Inc. on behalf of the State of Alaska, Oil and Gas Conservation Commission (AOGCC). The wells were drilled in anticipation of developing a coalbed methane gas field in an area of the Matanuska-Susitna Borough, north of Houston, Alaska. Drilling operations were conducted during the years 1997 to 2000. The Australian operator, GRI, failed to complete the field as planned when the cost of development coupled with a disillusioned investment community forced GRI to forfeit their investment. The leases were dropped and the properties became the responsibility of their bonding company, ACE USA. ACE USA has since forfeited the value of the bond to the AOGCC and Fairweather has been contracted to P&A the wells, close the reserve pit at Houston No. 1 and obtain final site clearance for each well site. The Houston No. 1 reserVe pit is located on property that is jointly owned 50% by Mike and Pam Mikkelson and 50% by Thomas F. Baird. The pit lies at the end of the airstrip near the Houston No.1 well and is approximately 75 X 100 X 5 feet in dimension. Coordinates for this location are N 61° 37.959' W 149049.292'. The pit is believed to have been constructed in 1997 by excavating native soils and lining the excavation with impenneable synthetic liner material of unlmown specification. Drilling mud and cuttings from the Houston No. 1 well were initially discharged to the pit. The drilling mud was a water based bentonite slurry with barite added for density. Subsequently, the pit may have been used to contain produced water from the No. 1 well. GRI periodically pumped the water in the reserve pit west to the Houston No.3 well for injection disposal until ceasing operations in 2000. In 2003, the pit was pumped out completely by a local resident and approximately 20% of the liner material has been removed from the northern sidewall and bottom of the pit. The current status ofthe pit is inactive and open. Attachment 1 presents an aerial view of the reserve pit and surrounding vicinity as of May 16, 2002. Attachment 2 shows existing plan and elevation views. Water in the reserve pit is clear with some sediment and organic debris on the bottom. Fairweather has applied for a surface discharge pennit from the ADEC for the water in the reserve pit and this approval is forthcoming. The water in the reserve pit is :tree of significant contaminants and meets the criteria for surface discharge. The sediments in the reserve pit are also non-hazardous and suitable for in place burial. Sampling protocols for the water and sediment in the reserve pit were discussed and approved by the ADEC priorlto sampling. The analytical results for the water and sediment in the pit are attached. The following infonnation has been prepared to meet the requirements for closure of the reserve pit under the ADEC Coal Bed Methane/Shallow Natural Gas Policy. 1 , · · · · · · · · · · · · · · · · · · · · · t · · · · · · · · · · · · · SoUd Waste Disposal Plan Fairweather's plan for closing the reserve pit calls for the following actions: 1. The water in the reserve pit will be pumped out and discharged to the surface in accordance with ADEC's approval of said discharge. Substantial effects on surface water, groundwater and soil are anticipated to be nonexistent from the surface discharge of the reserve pit water. 2. Next, the pit liner material will be picked up at the perimeter of the pit and folded over into the center covering the sediments. 3. The folded liner material and existing limits of the reserve pit will be surveyed for future reference and filed as a deed notice with the Borough. 4. The pit will then be backfilled with gravel and brought up to grade with the existing grass airstrip. It will then be capped with a layer of topsoil and seeded. The gravel backfill and grade elevation work is subject to approval and funding of such work by the ADNR. Otherwise, the liner and waste material will be covered with the original spoils material that was excavated to construct the pit. Attachment 3 shows the proposed pit status after closure as described above. 5. Subsequent to backfill, Fairweather will file a deed notice with the Matanuska Susitna Borough that contains engineered drawings with the following infonnation: · Description of the liner material; · Description of any top liner; · Thickness and type of cover material; · Description ofthe type of waste in the cell; and · Surveyed coordinates of the cell. 6. Approval for the above-described activity has been granted by the property owners. See attached letter approvals. Approval of the above Solid Waste Disposal Plan is hereby requested of the Department in accordance with the ADEC Coal Bed Methane/Shallow Natural Gas Policy. 2 ......................._--------~~~~~~~~~~~ Attachment 1 Houston No.1 General Vicinity Scale: 1" = 150' Photo taken May '02 ~ ~ ~ ~ ~ ~ · · þ þ þ þ þ Þ t Þ Þ Þ Þ Þ Þ Þ Þ Þ Þ. · · · · · · · · · t · · · · · · · · PLAN VIEW 100' I / Y- ~ ~ i ~ - ú) r- ,L\PPROXIMÞTEL Y 18" WATER IN PIT '- "- ~ ~ /'J ~//~~))) ) OVERBURDER MATERAL / UNDER PIT LINER ~ , ELEVATION VIEW ... WATER LEVEL ATTACHMENT 2 EXISTING RESERVE PIT FILE: FAIR_DWG1 DATE: 8/17104 DRAWN: CAY þ þ þ þ þ þ þ þ þ þ þ þ þ þ · · · þ þ Þ t t t t t t t · · · · · · · · · · · · · · · · FILE: FAIR_DWG1 PLAN VIEW 100' I ~ - PIT CONFIGURATION - L[) f'-. " ~ - ELEVATION VIEW GRASS SEEDED I . . . : . .' . ..," '.. .' .... " . . .', . . '. .....:.., .... .' ":" '.' . .',. ..." :.: '.' .~., . . :.', " ~ ~ .' .:::. . .,' . ~ .', '. TOPSOIL . - ", "........ .... " . . ..... '.' . . . . . . . ..' . . '.: ....',.... :; ". . . ',' , . ' . ..," .. ',~ ", .,' . .' I"~, SLOPE GRAVEL \ SEDIMENTS ATTACHMENT 3 SOLID WASTE DISPOSAL PLAN DATE: 8/19/04 DRAWN: CAV · l- I SG~ '1 Laboratory Analysis Report SGS ENVIRONMENTAL SERVICES--ALASKA CT&E Laboratory Delivery Group Number: TA4-GO-P626 Page 1 DATE: 08/02/04 coc: I certify that this data package is in compliance with the terms and conditions of the contract, both technically and for completeness. for other than the conditions detailed in an attached case narrative. Release of the data contained in the hard copy data package has been authorized by the Laboratory Manager or designee, as verified by the following signature. A case narrative is not required. Reference Sample Description Sampled Laboratory Number 1044541002 1044541004 GRAB 04H1001WA GRAB 04H1002N1\ 07/26/2004 07/26/2004 'I'M-GO-P626-001 TA4-GO-P626-002 SUbmitted by, ~~ Scott G. Mandirola Product:ion Manager This report includes a total of ~ pages. SGS Environmental Ser~¡ces inc. laboratory Division 1258 Greenbrier Street, Charleston, WV 25311·1002 t i304! 346-0725 f 1304) 346·0761 WWW.S{lS-COffi · · · · · · · · · · · · · · · · · CT&:E Environmental Services Inc. Laboratory Division: Charleston Laboratory Forest Taylor SGS ENVIRONMENTAL SERVlCES--ALASKA Laboratory Number TA4-GO-P626-001 Page 1 1044541002 GRAB 04H100IWA COC Date Sampled 07/26/04 Date Received 07/29/04 16:00 09:40 Type F Matrix WATER Sampled by CLIENT 080204 1438 Ver. 4.0.198 ANALYSIS FOR REQUESTED PARAMETERS Analyzed Parameter CAS No. Result Flg RLimit Units S Method Date/Time/Anl PilF --~---------------------------------------------------~--------------------------------------------~-------------------------------- NAPHTHALENE 91-20-3 ND U 0.62 ug/L EPA610 07/30/04 20:11 ra 1.0 ACENAPHTHYLENE 208-96-8 ND U 0.62 ug/L EPA610 07/30/04 20:11 ra 1.0 ACENAPHTHENE 83-32-9 ND U 0.62 ug/L EPA610 07/30/04 20:11. ra 1.0 FLUORENE 86-73-7 ND U 0.62 ug/L EPA61 0 07/30/04 20:1.1 ra 1.0 PHENANTHRENE 85-01-8 ND U 0.62 ug/L EPA610 07/30/04 20:11 ra 1.0 ANTHRACENE 120-12-7 ND U 0.62 ug/L EPA61.0 07/30/04 20:11 ra 1.0 FLUORANTHENE 206-44-0 ND U 0.062 ug/L EPA610 07/30/04 20,11 ra 1.0 PYRENE 129-00-0 ND U 0.062 ug/L EPA61 0 07/30/04 20:11 ra 1.0 BENZO (A) ANTHRACENE 56-55-3 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 CHRYSENE 218-01-9 ND IT 0.062 ug/L EPA610 07/30/04 20:11 ra 1..0 BENZO(B)FLUORANTHENE 205-99-2 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 BENZO (K) FLUORANTHENE 207-08-9 ND U 0.031 ug/L EPA610 07/30/04 20:11 ra 1..0 BENZO (A) PYRENE 50-32-8 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1..0 INDENO(1,2,3-CD)PYRENE 193-39-5 ND U 0.062 ug/L EPA61 0 07/30/04 20,11 ra 1.0 DIBENZO(A,H)ANTHRACENE 53-70-3 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1..0 BENZO(G,H,I) PERYLSNE 191-24-2 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 SURROGATE RESULTS O-TERPHENYL 84 -15-1 0.60 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 O-TERPHENYL 84-15-1 48 '" REC EPA610 07/30/04 20:11 ra 1.0 þ þ þ þ þ . þ þ þ þ þ þ · þ · · þ · · · · · t t · · CT&:E Environmental Services Inc::. Laboratory Division: Charleston Laborato~ Forest Taylor SGS ENVIRONMENTAL SERVICE$- -ALASKA Laboratory Number TA4-GO-P626-002 Page 1 1044541004 GRAB 04H1002WA coc Date Sampled 07/26/04 16,27 Date Received 07/29/04 09:40 'type F Matrix WATER Sampled by CLIENT 080204 1438 Ver. 4.0.198 ANALYSIS PO~ REQUESTED PARAMBTSR$ Analyzed Parameter CAS No. Result Flg RLimit Units S Method Date/Time/AnI DUF ---------~~-~-"-----------------------------~--------------------------------------------------------------------------------------- NAPHTIlALENE 91-20-3 ND U 0.62 ug/L EÞA610 07/30/04 21:22 ra 1.0 ACENAPHTHYLENE 208-96-8 ND U 0.62 ug/L EPA61 0 07/30/04 21:22 ra 1.0 ACENAPHTHENE 83-32-9 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 FLUORENE 86-73-7 ND U 0.62 ug/L EPA610 07/30/04 21,22 ra 1.0 PHENANTHRENE 85-01-8 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 ANTHRACENE 120-12-7 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 FLUOAANTHENE 206-44-0 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 PYRENE 129-00-0 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 BENZO(A)ANTHRACENE 56-55-3 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 CHRYSENE 218-01-9 ND U 0.062 ug/L EPA610 07/30/04 21 :22 ra 1.0 BENZO(B)FLUORANTHENE 205-99-2 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 BENZO(K)FLUORANTHENE 207-08-9 ND U 0.031 ug/L E:PA61 0 07/30/04 21:22 ra 1.0 BENZO (A) nRENE 50-32-8 ND U 0.062 ug/L E:PA61 0 07/30/04 21:22 ra 1.0 INDENO(1,2,3-CD)PY.RENE 193-39-5 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 DIBENZO (A,H) ANTHRACENE 53-70-3 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 BENZO(G,H,I)PERYLENE 191-24-2 1'11) t1 0.067- ug/L EPA610 07/30/04 21:22 ra 1.0 SURROGATE RESULTS O-TERPHENYL 84-15-1 0.58 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 O-TERPHENYL 84-15-1 46 '" REC EPA610 07/30/04 21:22 ra 1.0 · · · · · · · · · · · · · · · · · · · · --'--'~_.._-.._.......'-"'~--"" .. " Laboratory Analysis Report 200 W. Potter Drive Anchorage, AI< 99518-1605 Tel: (907) 562-2343 Fax: (907) 561-5301 Web: http://www.sgsenvironmental.com . ' Cal Larson PSI Environmental & Instrument 1611 E. First Ave Anchorage, AK 99501 Work Order: 1044541 Houston Reserve Pit #1 PSI Environmental & Instrumentation August 12, 2004 Client: Report Date: Enclosed are the analytical results associated with the above workorder. As required by the state of Alaska and the USEP A, a formal Quality Assurance/Quality Control Program is maintained by SGS. A copy of our Quality Control Manual that outlines this program is available at your request. The laboratory ADEC certification numbers are AK08-03 (OW), UST -005 (CS) and AK00971 (Micro). Except as specifically noted, all statements and data in this report are in conformance to the provisions set forth by the SGS Quality Assurance Program Plan and the National Environmental Laboratory Accreditation Conference. If you have any questions regarding this report or if we can be of any other assistance, please call your SGS Project Manager at (907) 562-2343. The following descriptors may be found on your report which will serve to further quality the data. PQL Practical Quantitation Limit (reporting limit). U Indicates the analyte was analyzed for but not detected. F Indicates an estimated value that fans below PQL, but is greater than the MOL. J The quantitation is an estimation. B Indicates the analyte is found in a blank associated with the sample. * The analyte has exceeded allowable regulatory or controllimíts. GT Greater Than D The analyte concentration is the result of a dilution. L T Less Than ! SU1Togate out of control limits. Q QC parameter out of acceptance range. M A matrix effect was present. JL The analyte was positively identified, but the quantitation is a low estimation. E The analyte result is high outside of calibrated range. Note: Soil samples are reported on a dry weight basis unless otherwise specified. SGS Environmental Services Inc. 1200 W. Potter Dr, Anchorage AK. 99518-1605 t (907) 562-2343 [(907) 561-5301 www.uugs.com , t ._-_..__.._----.._-_._._,.._--_..~..,..._-_._.._-,_...... · · · · · · · SGS Ref.# 1044541001 All Datesrrimes are Alaska Standard Time Client Name PSI Environmental & Instrumentation Printed DateJTime 08/12/2004 12:46 · Project Namel# Houston Reserve Pit # 1 Collected Date/fime 07/26/2004 10:00 · Client Sample ID 04HI004TB Received Date/fime 07/27/2004 15:45 Matrix Water (Surface, Eff.) Ground) T"..t'" DI""~ Stephen C. Ede · Released By ~ · · Sample Remarks: , " · · Parameter Results PQL Units Method Container ID Allowable Prep Analysis Imt Limits Date Date · Volatile Chromatography/Mass Spectroscopy · Gas ., · Benzene 0,000400 U 0.000400 mg/L EP A 602/624 A 08/04/04 08/04/04 VS Toluene 0.00100 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS · Chlorobenzene 0.000500 U 0.000500 mglL EP A 602/624 A 08/04/04 08/04/04 VS · Ethylbenzene 0.00100 U 0.00100 mgIL EP A 602/624 A 08/04/04 08/04/04 VS · P & M -Xylene 0.00200 U 0.00200 mgIL EP A 602/624 A 08/04/04 08/04/04 VS o-Xylene 0.00100 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS · 1,3-Dich1orobenzene 0.00100 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS .' · 1,4-Dichlorobenzene 0.000500 U 0.000500 mglL EP A 602/624 A 08/04/04 08/04/04 VS I ,2-Dich lorobenzene 0.00]00 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS " · , Surrogates ] ,2-Dichloroethane-D4 <surr> 93.9 % EP A 602/624 A 72-119 08/04/04 08/04104 VS Toluene-dS <surr> 95.3 % EP A 602/624 A 84-113 08/04/04 08/04/04 VS 4-Bromofluorobenzene <surr> 94.8 % EP A 602/624 A 78-124 08/04/04 08104104 VS :::I :::I · · ..__.··..M..~.·... ..... :.;: · · : · .- · · · · SGS Ref.# 1044541002 All Datesffimes are Alaska Standard Time Client Name PSI Environmental & Instrumentation Printed Dateffime 08/12/2004 12:46 · Project Namel# Houston Reserve Pit #1 Collected Dateffime 07/26/2004 16:00 · Client Sample ID 04HlO01WA Received DatelTime 07/27/2004 15:45 Matrix Water (Surface, Etf., Ground) T<d>.t<al Di_~ S,....'" c. Ed< · · Released By ~ · Sample Remarks: · PAR by EPA 610 was analyzed by SGS/CfE of Ludington, MI. · Results Units Allowable Prep Analysis Init Parameter PQL Method Container ID Limits Date Date · · Metals Department · Mercury by Cold Vapor 0.000200 U 0.000200 mg/L SW7470NE245. t G 07130/04 07130/04 TK · · RCRA Metals · Arsenic IO.OU 10.0 ug/L SW6020 G 07/29/04 08/01104 iLB · Barium 279 3.00 ugIL SW6020 G 07/29/04 08/01104 iLB Cadmium 2.OOU 2.00 ug/L SW6020 G 07/29/04 08/01104 iLB · Chromium 4.00U 4.00 uglL SW6020 G 07/29/04 08/01/04 JLB Lead 2.OOU 2.00 uglL SW6020 G 07/29/04 08/01104 JLB Selenium 10.OU 10.0 ug/L SW6020 G - 07/29/04 08/01104 JLB SíI ver 2.00U 2.00 uglL SW6020 G 07/29/04 08/01104 JLS Waters Department Chloride 148 2.00 mgfL EPA 300.0 D 08/12104 118 Total Dissolved Solids 301 10.0 mglL SM20 2540C E 07/28/04 KC Volatile Gas Chromatography/Mass Spectroscopy Benzene 0.000400 U 0.000400 mglL EP A 6021624 A 08/04/04 08/04104 VS Toluene 0.00]00 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS Chlorobenzene 0.000500 U 0.000500 mglL EP A 6021624 A 08/04/04 08/04104 VS Ethylbenzene 0.00100 U 0.00100 mglL EP A 6021624 A 08/04/04 08/04/04 VS P & M -Xylene 0.00200 U 0.00200 mglL EP A 6021624 A 08/04/04 08/04/04 VS o-Xylene 0.00100 U 0.00100 mglL EP A 6021624 A 08/04/04 08/04/04 VS 1,3-Dichlorobenzene 0.00100 U 0.00100 mglL EP A 602/624 A 08/04/04 08/04/04 VS 1,4-Dichlorobenzene 0.000500 U 0.000500 mg/L EP A 6021624 A 08/04/04 08/04/04 VS 1,2-Dichlorobenzene 0.00100 U 0.00100 mg/L EP A 602/624 A 08/04/04 08/04/04 VS Surrogates I ,2-Dichloroethane-D4 <surr> 94 % EP A 6021624 A 72-119 08/04/04 08/04/04 VS · · · · · · · · · · · · · · · · · · · · · · · · · · · SGS Ref.# Client Name Project Namt/# Client Sample ID Matrix 1044541002 PSI Environmental & Instrumentation Houston Reserve Pit #1 04HlO01WA Water(Surface,Eff.,Chound) Parameter Results PQL Volatile Gas Chromatography/Mass Spectroscopy Toluene-d8 <surr> 96 4-Bromofluorobenzene <surr> 94.8 Secondary Contaminants pH 8.99 Solids Total Suspended Solids 6.00 0.100 1.00 Units '. All DatesITlmes are Alaska Standard Time Printed Date!Time 08/12/2004 12:46 Collected Dateffime 07/26/2004 16:00 Received DateITlme 07/27/2004 15:45 Technical Director Stephen C. Ede Method % % EP A 602/624 EP A 602/624 pH units BPA 150.1 mglL EPA 160.2 AUowable Container ID Limits A A 84-113 78-124 E F ., ., Prep Date Analysis Date Init 08/04/04 08/04/04 VS 08/04/04 08/04/04 VS 07/28/04 NCS 07/28/04 KC II' · · · · · · · · · · · · · · · · · · · · · ." ,. , . " ,. SGS Ref.# Client Name Project Name/# Client Sample ID Matrix 1044541003 PSI Environmental & Instrumentation Houston Reserve Pit #1 04HI00IWA Diss. Water (Surface, Eft:, Ground) AU Dates/Times are Alaska Standard Time Printed DatelTime 08/12/2004 12:46 Collected DateITime 07/26/2004 16:00 Received DatelTime 07/27/2004 15:45 Technical DirertY: Stephen C. Ede Released By '<b ~ " .' Sample Remarks: Parameter Results PQL Units Metboâ Allowable Prep Analysis Container 1D Limits Date Date Init Metals Department Arsenic Barium Cadmium Chromium Lead Selenium Silver Mercury by Cold Vapor IO.OD 10.0 uglL SW6020 Diss. A 07/26/04 08/01/04 JLB 246 3.00 ugIL SW6020 Diss. A 07/26104 08/01/04 JLB 2.OOU 2.00 ugIL SW6020 Diss. A 07/26104 08/01/04 ILB 4.00U 4.00 ugIL SW6020 Diss. A 07/26/04 08/01/04 ILB 2.00U 2.00 uglL SW6020 Djss. A 07/26/04 08/01/04 ILB 1O.0U 10.0 ugIL SW6020 Diss. A 07/26/04 08/01/04 ILB 2.OOU 2.00 uglL SW6020 Diss. A 07/26/04 08/01/04 ILB 0.000200 U 0.000200 mglL SW7470A DissoJ A 07/30/04 07130104 TK ::I ~ I ~ · · · · It · · SGS Ref.# 1044541004 An Dateslfimes are Alaska Standard Time · Client Name PSI Envíronmental & Instrumentation Printed Datetrime 08/12/2004 12:46 · Project Namel# Houston Reserve Pìt #1 Collected Datetrime 07/26/2004 16:27 Client Sample ID 04Hloo2WA Received DatelTime 07/27/2004 15:45 · Matrix Water (Surface, Eff., Ground) M.kæ_~ S~"C. £de It Released By ~ · · Sample Remarks: l P AH by EP A 610 was analyzed by SGS/CTE of Ludington, MI. · It Results Units C.ontainer ID AI10wable Prep Analysis Parameter PQL Method Limits Date Date Init · Metals Department · I Mercury by Cold Vapor 0.000200 U 0.000200 mgIL SW7470AÆ245.1 G 07/30/04 07/30/04 TK · · RCRA Metals · Arsenic 1O.OU 10.0 uWL SW6020 G 07/29/04 08/01104 ILB Barium 275 3.00 uWJ. SW6020 G 07/29104 08/01104 ILB · Cadmium 2.OOU 2.00 ugIL SW6020 G 07/29/04 08/01104 JLB · Chromium 4.00U 4.00 uglL SW6020 G 07/29/04 08/01104 JLB Lead 2.00U 2.00 uWJ. SW6020 G 07/29/04 08/0]/04 ILB .' · Selenium 10.OU 10.0 uglL SW6020 G 07/29/04 0810]/04 JLB · ,. S ¡¡ver 2.00U 2.00 uglL SW6020 G 07/29/04 08/01104 lLB " ,. '" Waters Department Chloride 144 2.00 mglL EP A 300.0 D 08112104 118 Total Dissolved Solids 288 10.0 mglL SM20 2540C E 07/28/04 KC , . '. Volatile Gas Chromatography/Mass Spectroscopy .' Benzene 0.000400 U 0.000400 mg/L EPA 6021624 A 08/04/04 08/04/04 VS Toluene 0.00100 U 0.00100 mg/L EP A 6021624 A 08/04/04 08/04/04 VS " Chlorobenzene 0.000500 U 0.000500 mg/L EP A 6021624 A 08/04104 08/04104 VS Ethylbenzene 0.00100 U 0.00100 mglL EP A 6021624 A 08/04104 08104/04 VS P & M -Xylene 0.00200 U 0.00200 mgIL EP A 6021624 A 08/04104 08/04/04 VS o-Xylene 0.00100 U 0.00100 mglL EP A 602/624 A 08/04104 08/04/04 VS 1,3-Dichlorobenzene 0.00100 U 0.00100 mgfL EP A 602/624 A 08104/04 08104/04 VS 1,4--Dichlorobenzene 0.000500 U 0.000500 mglL EP A 602/624 A 08/04/04 08104104 VS 1,2-Dichlorobenzene 0.00100 U 0.00100 mgIL EP A 6021624 A 08/04/04 08/04/04 VS .' Surrogates 1,2-Dichloroethane-D4 <SUIT> 95.6 % EP A 602/624 A 72-119 08/04/04 08/04/04 VS · · t · · · · · . SGS Ref.# Client Name · Project Namel# . Client Sample ID Matrix · · · · · · · · · · · · 1044541004 PSI Environmental & Instrumentation Houston Reserve Pit #1 O4HI002WA Water (Surface, Eff., Ground) All Datesfl'imes are Alaska Standard Time Printed DatelI'ime 08/12/2004 12:46 Collected Dateffime 07/26/2004 16:27 Received Date/Time 07/27/2004 15:45 Technical Director Stephen C. Ede Results PQL Units Allowable Prep Analysis Parameter Method Container ID Limits Date Date Init ,. Volatile Gas Chromatography/Mass Spectroscopy Toluene-d8 <surr> 97.8 % EP A 602/624 A 84-113 08/04/04 08/04/04 VS 4-Bromofluorobenzene <SUIT> 95.2 % EP A 602/624 A 78-124 08104104 08/04/04 VS Secondary Contaminants pH 9.09 0.100 pH units BPA 150.1 E 07/28/04 NCS Solids : Total Suspended Solids 1.70 0.500 mglL EPA 160.2 F 07/28/04 KC '. " , · t · · · · · · · · · · · · · · · · · · · · · · , .' SGS Ref.# Client Name Project Name/# Client Sample ID Matrix 1044541005 PSI Environmental & Instrumentation Houston Reserve Pit #1 04H1 002W A Diss. Water (Surface, Eff., Ground) All DatesJTimes are Alaska Standard Time Printed Dateffime 08/12/2004 12:46 Collected Datetrime 07/26/2004 16:21 Received Datetrim~ 071271200415:45 Technical Director Stephen C. Ede Reieased By ~. \ , Sample Remarks: Results PQL Units Method Allowable Prep Analysis Parameter Container ID Limits ---º~~ Date Init Metals Department Arsenic 10.OU 10.0 ug/L SW6020 Diss. A 07/26/04 08/01104 JLB Barium 250 3.00 uglL SW6020 Diss. A 07/26/04 08/01104 JLB Cadmium 2.00U 2.00 uglL SW6020 Diss. A 07/26/04 08/01104 JLB Chromium 4.00U 4.00 ug/L SW6020 Diss. A 07/26/04 08/01104 JLB Lead 2.00U 2.00 uglL SW6020 Diss. A 07/26/04 08101104 JLB Selenium 10.OU 10.0 ugIL SW6020 Diss. A 07/26/04 08/0 tlO4 ILB Silver 2.00U 2.00 uglL SW6020 Diss. A 07/26/04 08/01104 JLB Mercury by Cold Vapor 0.000200 U 0.000200 mglL SW7470A Dissol A 07/30/04 07130104 TK · · · · · · · · SGS Ref.# 1044541006 All DateslTimes are Alaska Standard Time · Client Name PSI Environmental & Instrumentation Printed DatelTime 08/12/2004 12:46 I Project Namel# Houston Reserve Pit #1 Collected Date!Time 07/26/2004 16:43 Client Sample ID 04HI003SL Received DatelTime 07/27/2004 15:45 · Matrix Soil/Solid Tedmkal Du.cto~ Step... c. .... I Released By ~ · · Sample Remarks: \ DRO - The pattern is consistent with a weathered middle distillate. · Allowable Prep Ana1ysis " · Parameter Resul~ PQL Units Method Container ID Limits Date Date Init · : Characterization · Aqueous Phase, Total 20 TCLP 07/28/04 JMP · % A Oil Phase, Total 0.0 % TCLP A 07/28/04 JMP · Solid Phase. Total 80 % TCLP A 07/28/04 JMP · · TCLP Metals · Arsenic 0.500 U 0.500 mglL SW6010B TCLP A «=5) 07130/04 08/02104 BAG · Barium 6.14 0.100 mglL SW60lOB TCLP A «=100) 07/30/04 08/02104 BAG Cadmium 0.0500 U 0.0500 mglL SW60 1 OB TCLP A «=1) 07/30/04 08/02104 BAG '.' f Chromium 0.200 U 0.200 mglL SW6010B TCLP A «=5) 07/30/04 08102104 BAG Lead 0.500 U 0.500 mg/L SW60 lOB TCLP A «=5) 07130/04 08/02/04 BAG Selenium 1.00 U 1.00 mglL SW60lOB TCLP A «=1) 07130/04 08102/04 BAG Silver 0.200 U 0.200 mglL SW6010B TCLP A «=5) 07/30/04 08/02/04 BAG Mercury by Cold Vapor 0.00200 U 0.00200 mglL SW7470A TCLP A «=0.2) 07130/04 07/30/04 TK Semivolatile Organic Fuels Department Diesel Range Organics 376 239 mgIKg AKI02 A 07/29/04 07131/04 JC Surrogates Sa Androstane <sure> 101 % AK102 A 50-150 07/29/04 07/31104 JC '. Solids Total Solids 23.8 % SM20 2540G A 07/30/04 CMM " '" '" " - ~11 (t CLIENT: í""n...W"i!.~TI"__' - '"' 179 r et\,,\ CONTACT:Je-"S&" ~1>~1L8\f.I«£'n.. PHONE NO: (4~1) PROJECT: HovST~~ l~e$1CILVIC" P."'f:# J PWSlDt: REPORTS TO: ?" -:r: rfJl/i/l.tl,vM,,.·;T,,,- ............................. - 1044541 I ¡ i i i CHAIN OF CUSTODY RECORD CT &E Environmental Services Inc. Laboratory Division r._____.IIIr.llllf_.__i/IIIf·__·___·.,·.,·--------· .,,-; FAX NO: (q~:¡.) INVOICE TO: Pt Œ:I\oI\I,Q.u)¡4·h;r,.,TA'-' . tA,:,tt C, I..T. ~ vC' QUOTE' /J"""HI)"'Pt.,¿'" Ale:. qq,Þ1 P.O. NUMBER: 42.<)'-OJO (2) lAB NO. SAMPLE IDENTIFICATION DATE TIME MATRIX Ì) A- <:. jJ4 H 3. ØØ4 re. _ -:¡.~~\)O~ vJ A ì;kT.-t!Pf\.. /J"I II 'j øpS i ~ W A ~ 71#01/ ¡ttltJO vJ A , ~. . 1>4 jJ j (Jp i wA71zG..(~ IViU> w A ~~ ~ ø 4 Hj. ~ 2.. y.J p. */¡'Vcll ¡(¡,t 7-. vA . ~ rp4u tØØ'2-I.ÑA -Iblùl1 l{,zJ1 wA 0,ö-.ß ¢A J-J'i r11>'1S L- '::1Äf:4 )(,'11 W A ------ 1 OF lX'X-K !X; IX. K X. ~ b( ~ >< CT&E Reference: ~,')~ SAMPLE TYPE c· COMP Goo GRAB qA t. Ó 6 Go. f:::Þ No. C o N T A I N E R S '3 (p -4. to 4 2- ~Î Z,ft:. -~4 4' z.-:¡2:qùCJ!'" x:. ----- --..... (Clrcfe) BROKEN ABSENT Temperature C: ~..7.2- (-&/1." Chain of Custody Seal INTACT J '--- ~ Shipping Carrier: Shipping TICket No: Data Dellverable;;.- Levell ~ Levet Received By: " ~a~ '2/ Time "?-/l. 7.4 14;0 Date Time (5) . CoIlectedlAellnquished By: (1) ~ -------. 0" L '-""".:J¡I'wI Relinquished By: (2) . Instructions: EDD Type: Requested Turnaround Time and Special ~¡QT Received By: Time Relinquished By: (3) Retained by Sampler (). 720 Pink . . Returned with Report YeUOw (Project FIle) Whhe· Retained by lab _..,(4) ~í~~$ 27A'Y' 200 W. Potter Drive Anchor.ge, AK 99518 Tel: (907) 562-:'2343~~. ( 1- 3180 Pager Road FaIrbanks, AK 99101 Tel: (907) 474.865Y? 474· '.' . . . .. · t · · · · · · I · · · · t · · · · I · · · · · · · · I · · · · · · · · · I · · · · , ',0 ~~ , /f/ . ~CET FORM SGS WO#: Yes 0 NA ¿L- _ Are samples RUSH, pr rity, or wIn 72 hrs. hold time? Due Date: gf¡tJÎl)if' ~ ~,... ~. _ If yes have you don - tific' Received Date: '7/ J..:l./ð r ~ '. Are'samples within 24 hrs. hold time or due date? Received Time: If)'#;. = = ,~yes, have you spo tth Supervisor? Is date/time conversion necessary? ....I!.!- _ //' Arèhiving bottles- if req., are they properly marked? # of hours to AK Local Time: - _ _ Are there any problems? PM Notified? Thermometer 10: '~d . v _ _ Were samples preserved correctly ànd pH verified? Cooler ID Temp Blank , ?~ °C °C °C °C °è 1044541 .' ...:. .. ..... "" '. '. / _ X ~ If this is for PWS, provide PWSID. _ ~ _ Will courier charges apply?' /" .Method . of payment? r::1) £ .~./ Data package required? (Level: 1 V I 3 I 4) /' Notes: . _ _ _ Is this a DoD project? (USACE, Navy, AFCEE) Cooler Temp ,/. h °C °C °C °C °C ·T8IIIIØtatuN reacIing$ Include Delivery method (circle all that appl : Client Alert Courier I UPS I FedEx I USPS AA Goldstreak I NAC I ERA I PenAir I Carlile Lynden I SGS I Other: . This's~~tio~initsì:be'f¡Úed'~tilið""~il!,: :,ÌJ,.oÙ~~:rosAcjKfÚ;';;A~,~~EE»:' ::.,;~ AirbUl # ,: Yes":".'N9;'·'::"':'~)·""':::"'.;:L·,'> ;, . ',"': '.. };:', ': :', '..<: Additional Sample Remarks: (..J if applicable) ~ :'-:...:... " -"'-Is-,ieéeived-tem~rature:4"±2?~ :', . ,.: . . .': <~.;",,'.' " :' Extra Sample Volume? . ..- . ,: ËXèeptìótit.:· -", ;', :' '. ,'.' :-. :..., , : S~pÍe5t~å1y~s Aîfe~:.· - Umited Sample Volume? .. ,,··,,~'2.,::::::~3~>:',:':::'::.:,:,:,~~/:>,;, .:,:. ;:,., :. ,.' .,::>';',. '-::;:{,·"'i::-;'·./-": :':.' '" ":'" ':- Field preserved for volatiles? .. ,:~'" Field-filtered for dissolved? '.,','.,;;,:': Lab-filtered for dissolved? , , '. Ref Lab required? ,,'., '''.. , Foreign Soil? " ,- " " ".' ...". . ..' ,', . . ,:Thls s~n'must ~.liiltd üDroblmø are1~nrl '::z:~~~~~~ ;:,v.þ':".,j>}jQhC<J F~"'f'gui.a:n . (circle one) . , :'paterrjfu~:' ,-"": ,"'::" ':" " ':: , : . ~on"fof,contåC:t: ': . "., ..;" -, ~. " .... . ." . .... " ,- .-' , , " .. .'---- . . '-----. .... . .~ , , .. ~. . . ";', " .:¡:' . , -, ....:...:- , , - ~-' '.' ~. . . , r~~~~:~1.~~,qÿ!:;, '< . ... , ~ ',';. ':" " " Notes: (J~ rQ..~~ Ld'~ (/]...{ 11- 4 'I... C.)/~.u.l.~ I'u;r'_ ~ =HZ-:r'/dl- completedbY/signJ:~·· V /ptintJ:.Ä1'£ ell! :?//¡ Login proof (check one): aived _ required _ performed by: \\perra\public\DOCUMENI\FORMS proved\SRF _FOO4r14.doc Form # F004r14 : 05/17::,: ............................. 1044541 _8(2$. \IIIII~III SAMPLE RECEIPT FORM (page 2) SGS WON: : ':.'" Container Volume Container Ty->e Preservative # 0 :Ë Test (,) ~ ..J ..J ..J ..J ..J ...3 ~ 3 Other o 0 ~ ~ r.2 :.::I a Other ~ Û Ô ò :r: Ö:r: Other ..... o .- e s e s e s < u ~ fo;3 8 if - ~:r: ~ ~. ~ rJ; ~ '"" ~ <:) <:) '" <:) <:) Q ~ ] <:) '" N 'D ~ ~ ~ cIJ :r:~:fZ '" N - . '-' e.. d N N 0 o 0 (,) 00 ~ I A-G I í~¡¡/6tJ4~u ....'i X X X R toe . I fAN ~67/rVl g X X X h I º-hl~ I X X .f: I íP5JpN 1 )( X " P X X , íS5 ~':Ilr"') I (;1 Í1t,J , X . X J.l..t , ~jN bib :J.. X X 3 A I hðSÞl~~ trJf.'¡'''~ t I X' 4 A-t f 1"1JH 6ð~/6tr 3 ~ X X b I ul~ I X 1 1:: I If), '¡ p~ 4 2 F ( -rss~ ,,1(,l X G ( íq1-tJ/ ~ ~ I ¿) )( ~-1 ( ~1J.. 6/0 '- X ..x X s- A , 11.,.,~J, I I R)1- , A-I?> ~ ~ .2- X ...,,- *' ?(-z..** . I Bottle Totals I (, I ~J 4-1 11-1 q I t.t I Compl~ed b¡r~ lœ:~~1 . ,~\~~.,,;I"\_.:."Hft\J~f'ryT~.~~J:i():rfM!;:~""r(l"r..(I\.~~F.:, f.OO4J14~doç Form # FOO4rI4: 05/17/04 " ,-, ....: i: '........................... . . ..1/:J.1- /0 Y 1.o~~541 .--'Envlronmenlal custODY SEAL Signature: c.." ~ ~L L.14Þ-~~tIV Datol11mei 7p~ 1#.0 .--'Envlronmental custODY SEAL Signature: t4. ~ .. (!,- t... ~'o'l/ DateITlme~ 7¡f~/of /,p;o ,/ .4 16;; , , C-; (3. ct "', ,'.',." . . .,' . ,.;~: '. . " . ". .,'. . , .... ," ....:....:.... .. ....'. , . ':. '~'>:_'.:::. . . .' .þ .- . . t~ II . . , . . , . . .' · · · · · .-, . . , . , , , · · · · , · · · · , . , . . SGS/CT&E Environmental Services 1A't)q,1 .JCLP SAMPLE CHARACTERIZATION H$N#: . '7 ,-{, A- Date: ? 2K..elf Analyst: Sample vo;jnL}: -"Z. '2. 7~1 Container Volume (mL): -z-.$' e-;1",.,/ Top ~{ % (xylene miscible) Description I Notes: ..J: Middlo J: 7- c::> % (water miscible) DesorIptton /Not...: 7v/b.-¡P 7. "\ f~/· Ú~ V~ Bottom t 1>Ð % (solids) Description I Notes: fi'i¢< 9/"7 ~,'/ ) '1L.. Percent Solids Detennination: Original Sample & Container weight (9): Empty Original Container weight (g): Clean Container weight (g): Original Sample weight (g): Filter weight (9): - Clean Container & liquid weight (g): Liquid weight (9): FillEtr & Solie! Sample weight (g): Solid weight (g): "~) .' /'" /"" ( Solid % of sample: liquid % of sample: Weight solids eXtracted (9): Extraction Auid: Vol. Original Liquid Added Back (mL) Liquid Volume (mL): c ,) No...: ~.;/ I! wz fi;,-(" ·l. ~¿rfk~ ~.6Z: R''7 /t'''Ý #4V-<' ¿f. ¡"ì4 4/1~c: :f¿ttn tu¿"f~-¡-~4?Jrf. íPr~$~ r:ß,~ ~H~< fta'ft:'/. 7¿?' I H-yt''- _.,_______ - . .- Date: Analyst: % (xylene miscible) (water miscible) .% (so' Container Volume (ml): Description I Notes: '. De~cription I Notes: Description I Notes: Bottom Perçent Solids Determination: Original Sample & Co$iner weight (g): Empty Original Container weight (g): Clean Container weight (9): Original Sample weight (9): . Filter weight (9): I Clean Container & I,.iquid weight (g): Uquid weight (g): Fdter & Sòlid Sample weight (9): Solìd weight (9): Notes: \ev. 03J30J04 i ~ : i Sorld % of sample: Liquid % of sample: eight solids extracted (9): ' Extì' ion Fluid: Vol. Origi Liquid Add8d Back (mL) . Liquid Volu~ , . , , , c?1~~ 7.¿-?'GIf., '-- Page 137 Book#:: LW04-(}277: FW-MM · · t I · · -5G~ Laboratory Analysis Report SGS ENVIRONMENTAL SERVlCES--ALAS~ C'1'6<E Laboratory Delivery Group Nu,nber: TA4-GO-P626 Page 1 DATE: 08/02/04 cac: I certify that this data package is in compliance with the terms and conditions of the contract, both technically and for completeness. for other than the conditions detailed in an attached case narrative. Release of the data contained in the hard copy data package has been authorized by the Laboratory Manager or designee. as verified by the following signature. A case narrative is not required. Reference Sa~le Description Sa~led Laboratory Number 1044541002 1044541004 GRì\B 04H1001WA GRì\B 04HI002WA 07/26/2004 07/26/2004 TA4-GO-P626-001 TA4-GO-P626-002 Submitted by. þð'4-d Scott G. Mandirola Production Manager This report includes a total of ~ pages. SGS Environmental Services inc,_!laboratO/V Division 1258 Greenbrier Street Charleston. \NY 25311-1002 t (304) 346·0725 f (3041346-0761 www.sgs.com ,. 'of .. · t · · · t I · · · · · I · · · · · I) · · · · , _..__._.....~_.,_...._".. CT&:E Environmental Services Inc. Laboratory Division: Charleston Laborato~ Forest Taylor 5GS ENVIRONMENTAL SERVICES--ALASKA Laboratory Number TA4-GO-P626-00l Page 1 1044541002 GRAB 04H100H/A COC Date Sampled 07/26/04 Date Received 07/29/04 16:00 09:40 Type F Matrix WATER Sampled by CLIENT 080204 1438 Ver. 4.0.1.98 ANALYSIS FOR REQUESTED PARJIMETERS Analyzed Parameter CAS No. Result Fig RLimit units S Method Date/Time/Anl DilF ---------------------~---------------------------------------------------------.---.-------------.-----------------------------.---- NAPR'l'HALENE 91.-20-3 ND U 0.62 ug/L EPA61 0 07/30/04 20:11 ra 1.0 ACENAPHTIn'LSNE 208-96-8 ND U 0.62 ug/L EPA610 07/30/04 20:11 ra 1.0 ACENAPHTHENE 83-32-9 ND U 0.62 ug/L EPA61.0 07/30/04 20:11. ra 1..0 FLUORBNB 86-73-7 ND U 0.62 ug/L EPA61.0 07/30/04 20:11 ra 1.0 PHENAN'l'HRJWB 85-01-8 ND U 0.62 ug/t. EPA610 07/30/04 20,11 ra 1.0 ANTHRACSNB 120-12-7 ND U 0.62 ug/L EPA61 0 07/30/04 20,11 ra 1.0 FLUORANTImNE 206-44-0 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 PYRENE 129-00-0 ND U 0.062 ug/L EPA610 07/30/04 20,11 ra 1.0 BENZO (A) ANTHRACENE 56-55-3 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 CHRYSENE 215-01-9 ND U 0.062 ug/t. EPA610 07/30/04 20:11 ra 1.0 BENZO(B)FLUORANTHENE 205-99-2 ND U 0.062 ug/L EPA610 07/30/04 20,ll ra 1.0 BENZO (K) FLUORANTHENE 207-08-9 ND U 0.031 ug/L EPA610 07/30/04 20:11 ra 1.0 .' BENZO(A)PYRBNE 50-32-8 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 INDENO(1.2,3-CD)PYRBNE 193-39-5 ND U 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 DIBENZO(A,H)ANTHRACBNE 53-70-3 ND U 0.062 ug/L EPA610 07/30/04 20:1.1 ra 1.0 BENZO(G,H,I)PERYLBNE 1.91-24-2 ND U 0.062 ug/L EPA61 0 07/30/04 20:1.1 ra 1.0 SURROGATE REStlLTS O-TE1<PHENYL 84-15-1 0.60 0.062 ug/L EPA610 07/30/04 20:11 ra 1.0 O-TERPHENYL 84-15-1 48 t REC EPA610 07/30/04 20:1.1 ra 1.0 · , · I · · tl · · · · · · · - · It · · t · · · - ¡ CT&E Environmental Services Inc. Laborato~ Division: Charleston Laborato~ .' Forest Taylor SGS ENVIRONMENTAL SJi:RVICE$--ALASKA Laboratory Number TA4-GO-P626-002 1 Page 1044541004 GRAB 04HI002WA coc Date Sampled 07/26/04 16:27 Date Received 07/29/04 09:40 .' Type F Matrix WATER Sampled by CLIENT 080204 1438 Ver. 4.0.198 ANALYSIS FOR REQUESTJro PARAME'l'ERS ------------------~----------_.~---------------------------------------------------------------------------------------------------- Analyzed Paran1eter CAS No. Result S Method Date/Time/Anl DilF Flg RLimi t Units NAPHTHALENE 91-20-3 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 ACENAPHTHYLENE 208-96-8 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 ACENAPHTHENE 83-32-9 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 FLUORENE 86-73-7 ND U 0.62 ug/L EPA61 0 07/30/04 21:22 ra 1.0 J?HBNAtmIRENE 85-01-8 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 ANTHRACENE 120-12-7 ND U 0.62 ug/L EPA610 07/30/04 21:22 ra 1.0 FLUORANTHENE 206-44-0 ND U 0.062 ug/L BPA610 07/30/04 21:22 ra 1.0 PYRENE 129-00-0 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 BENZO(A)ANTHRACENE 56-55-3 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 GmYSENE 218-01-9 ND U 0.062 ug/L EPA6:10 07/30/04 21:22 ra 1.0 aENZO (a) FLUOR1lNT!ŒNE 205-99-2 ND U 0.062 ug/L EPA610 07/30/04 21 :22 ra 1.0 BEliZO (K) FLt1ORAN'l'HENE 207-08-9 ND !1 0.031 ug/L EPA610 07/30/04 21:22 ra 1.0 BENZO(A)J?YRENE 50-32-8 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 INDENO(l,2.3-CD)PYRENB :193-39-5 ND U 0.062 ug/L SPAHO 07/30/04 21:22 1:'a 1.0 DIBENZO(A,H)AN'I'HRACBNE 53-70-3 ND U 0.062 ug/L EPA6l0 07/30/04 21:22 ra 1.0 BENZO(G,H,I)PERYLBNE 191-24-2 ND U 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 SURROGATE RESOLTS O-TERPHENYL 84-15-1 0.58 0.062 ug/L EPA610 07/30/04 21:22 ra 1.0 0- TERPHENYL 84-15-1 46 % REC SPA6l0 07/30/04 21:22 ra 1.0 " .. . . , . .. .' ". '. ¡.............. ......... ..;.. .·w...... _.. _...,. CHAIN OF CUSTODY RECO~D 4. CT &E Environmental Services Inc. Laboratory Division ,._______________.........____..."11. · Alaska . Maryland · Michigan . New Jersey · w..t Virginia . Naw Orleans www.cteesi.com (1). CLIENT: '54:S £N\lIQ..o')JMtf\...t1)fL CONTACT: ¡;1...t::~ rI.w 1ð'2... PHONE NO: 9tnl Sb- 7.. "Z ~'I3 PROJECT: PWSID#: ... CT&E Reference: No. REPORTS TO: c 0 N T A I N E R MATRIX S K1Þ 2 H2P ~ FAX NO: ( INVOICE TO: QUOTE' P.O. NUMBER: ® LAB NO. SAMPLE IDENTIFICATION TIME DATE \. \D44S'41 DD ~ )..- t 04 Lf~' 00 4 lIv4Dlr 'lLDO ~ (.Len,:)- ® C«1~I.nqu.?111) ¿~lr- Date 1/zsJÆ OCUJD Time Received By: ~ Time ~ ------- ---' .--11ãie Time ~-~ // AeVnqu......I¥1.; ~ói ;;¡,,> ~. 200 W. Potier Drive Anchorage. AK 99518 Tel: (907) 562-2343 F~61.5301 3180 Pager Road Fairbanks. AK 99701 Tel: (907) 474-8656 Fax: (907) 474-9685 Date Relinquished By: (3) Received By: ... .,'," . ..,.... ,'" ',' ,.' ". .:. ," .....' ',. .......... . ", . . .. ...'.......... ~v-s-wV OF c= COMP G= GRAB REMARKS 4 (, ,,-- ~ H Id>tþl W A- þ4~ttPtÞ2 wa+ ~ (!) Shipping Carrier: Shipping Ticket No: ~ S Data Dellverables: Levell pvLevel1ll EDD Type: Requested Tumaround Time and Special Instructions: La:vl!\- '2 ,-;) fWa· \> ttt-KItUE Temperature C: L\~ ~ ~ ..ot. (Ct",.) ~Ro1<EN ABSENT WhIle· Retained by Lab (Project File) Yellow· Returned with Report P'1Ok . Retained by Sampler (H20 . . -::::. ,:';' "... . :.:', '::":.' ;:': ::' . . . ":: .:::. :,"'" '. ....." .~.:.'. " :..,::.:¿'~::'. :';,.:::''::.'.' ::. . :...... ..':".: ...' '.: . . . .:. :.: ....:..', .,'.... ,', .:.<,:.:~:f.~: , · t t t · · t · · · · · · · · · · · · -t · · · · · · · · · · · · · , · · · t · · · · Robert Blankenburg Industrial Waste Specialist Alaska Department of Environmental Conservation 555 Cordova Street Anchorage, ~ 99501 RE: Closure ofthc Houston No.1 Reserve Pit Dear Mr. B]ankenhurg: We are the owners of Tract D-8, Section 21, T18N, R03W, SM, the property where the HOUStO\1 No. I weU and reserve pit is located. Fairweather E&P Services, Inc. acting as a contractor for die State of Alaska, bas contacted us to discuss the upcoming work activities at the said location including plug and abandonme:ot of the well and closure of the reserve pit that are scheduled to commence on ·or about, August 16, 2004. We support these activities as described by Fairweather. For the reserve pit remediation, it is our understanding that the water will be discharged to the land surface immediately northeast of the pit and the liner wiJI picked up at the perimeter of the pit and folded over into the center COVer1tlg the sediments. The ph wi~J then be backfil1ed with grave] and brought up to grade with the existing grass airstrip and capped with a layer of topsoil ål1d seeded. Prior to burial, the liner material and existing limits of the reserve pit wi)] be surveyed for futüre reference and filed as a deed notice with the Borough. It is also our understanding that the above described activities are approved by the Department of Environmental Conservation and meet all regulatory requirements. :Based on the above conditions and plans. we hereby approve the reserve pit remediation work as described. Sincerely, r ~~ Thomas F. Baird Pam Mikkelsen ./ Date: 1.3 A:f{Æ:-& ¥ Date: ., · · · · · · · · · · · · · · · · · · · · · · · · I · · · · · · · · · · · · · · · · · Rug 18 04 09:12a Pam Mikkelsen 8-'7-04; ':03PM;FA'RWEATHE~ (907J 892-7563 ;90'( ;':(9 ::,r4U p. 1 :t:F "L./ :.< Robert Blankenburg Industrial Waste Specialist Alaska Department of Environmental Conservation 555 Cordova Street Anchorage, AK 99501 RE: Closw-e of the Houston No.1 Reserve Pit Dear Mr. Blankenburg: We are the owners of Tract D-8, Section 21, T18N, R03W, SM, the property where the Houston No. 1 well and reserve pit is located. Faitweather E&P ServîcçS, Inc. acting as a contractor for the State of Alaska, has contacted us to discuss the upcoming work activities at the said location including plug and abandonment of the weD and closure of the reserve pit that are scheduled to conunence on or about, August 16, 2004. We support these activities as described by FaÍ1weather. For the reserve pit remediation, it is our understanding that the water will be discharged to the land surface immediately northeast .of the pit and the liner win picked up at the perimeter of the pit and folded over into the center covering the sediments. The pit will then be backfilled with gravel and brought up to grade with the existing grass airstrip and capped with a layer of topsoil and seeded. Prior to burial, the liner material and existing limits of the reserve pit will be surveyed for future reference and filed as a deed nótice with the Borough. It is also our understanding that the above described activities are approved by the Department of Environmental Conservation and meet all reguJatory requirements. Based on the above conditions and plans, we hereby approve the reserve pit remediation work as described. Sincerely, J?~~ Pam Mikkelsen . Thomas F. Baird Date: Date: o//'?/ót/ · · · · · · · · · · · · · · · · · · · · -. · · · · · · · · · · · · · · · · · · · · Appendix E CONTAINED WATER DISCHARGE · 1< I I · · I · · I I · · · · · · · · · · · I · · · · · · · · · · · · I · · · · · I I · STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION Division of Water AUTHORIZATION NUMBER 2003DB0089-1012 UNDER CONTAINED WÀ.TER DISCHARGE ACTIVITIES General Permit Number 2003DB0089-1012 See this General Permit for additional permit requirements THE FOLLOWING RESPONSIBLE PARTY IS AUTHORIZED TO DISCHARGE IN ACCORDANCE WITH THE TERMS OF GENERAL PERMIT 9940':'DB003, THE INFORMATION PROVIDED IN THE APPLICATION, AND ANY SITE SPECIFIC REQUIREMENTS LISTED IN THIS AUTHORIZATION: First Name: Company Name: Mailing Address: City: Email Address: Jesse Mohrbacher Fairweather E&P Services, Inc. 2000 East 88th Ave., Suite 200 Anchorage State: jesse@fairweather.com Phone Number: 907 258-3446 Fax Number: 907 279-5740 AI{ Zip: 99507 F ACll.,ITY: Facility Name: Houston No.1 Reserve Pit Mailing Address: City: Houston State: AK Physical Address: Health Heights Subdivision, Houston, Alaska Phone Number: Fax Number: Zip: 99694 AUTHORIZED DATES OF DISCHARGE: Beginning Date: 08/16/04 Ending Date: 12/15/04 AUTHORIZED DISCHARGE FLOW RATES: Average: 80,000 Maximum: 100,000 Estimated Total Discharge Volume: 80,000 Rate of Pumping: 200 Gallons Per Day Gallons Per Day Gallons Gallons Per Minute AUTHORIZED LOCATION OF DISCHARGE: Name of receiving area: uplands northeast of the reserve pit no. 1 Latitude / Longitude of Discharge Point(s) in: Decimal Degrees: Latitude: 61.37959 0 Longitude: -149.49292 0 ADDITIONAL SITE SPECIFIC PERMIT REQUIREMENTS UNDER TillS AUTHORIZATION: 1. The discharge is to be made to the tundra / taiga such that no erosion occurs during the discharge. 2. Since the origin of the current fluids of the pit are solely due to rainwater accumulation, only on-site monitoring is being required for sheen and pH in the discharge. 3. The notice of intent describes a pH control system that includes the addition of vinegar followed by the addition ofNaHC03 to establish a stabile pH of> 6.5, and < 8.3. 4. The suction ofthe discharge pump will originate from a floating footvalve. · .' t · · · · · · · · .. · · .. · · · · · · · · · · · · · · · · · · · · · · · · · · · · g /;'1/04- Date Industrial Wastewater Program Supervisor File Number: 2230.48.001 G:.doc Revised 08119/04 Page 2 of2 .. I' t t I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION WASTE DISPOSAL GENERAL PERMIT for II Contained W ate~1 PERMIT NO. 2003-DB0089 This waste disposal general permit is available for use by persons responsible for disposal of contained water that meets the eligibility criteria in this permit Contained water means water isolated from the environment in a manmade container or a lined impoundment structure. Waste Disposals Eligible For Coverage Under this Permit. This general permit applies to: . contained water including, but not limited to: hydrostatic test water or chlorinated· water from tanks, pipelines, swú:nming pools, and other containers that meets state water quality standards in 18 AAC 70 and the effluent limitations in Section 1.2.2 oftbis permit; Waste Disposals Not Covered by this Permit. This general permit does not apply to: . contaminated groundwater where halogenated hydrocarbons are the primary contàminant of concern; · a discharge to waters listed. by the'state as impaired, where the impairment is wholly or partially caused by a pollutant contained within the proposed discharge; · a discharge from a sewage lagoon or other treatment works subject to a different State waste disposal permit; · a discharge permitted under stormwater general pennits; · . a discharge to groundwater under a response action, a cleanup, or a corrective action approved under 18 MC 70.005; or · . a discharge of drainage water accumulations from secondary containment regulated under 18 AAC 75.075 (d). Notice of Disposal Requirements. · A Notice of Disposal under Section 1.1.1 and prior written authorization from the Department are required for one-time disposal (i.e., no more that one disposal per year) of a volume of water greater than or equal to ·10;000 gallons through discharge to the land surface or to a surface water body; or · A Notice of Disposal is not required for the one-time disposal of a volume of water less than 10,000 gallons, however, all terms and conditions of this permit, including the effluent limitations in Section 1.2.2, still apply. General Provisions. A waste disposal authorized under this general permit is subject to the terms and conditions specified in Sections 1, 2, and 3 of this permit All disposals made under the authority of this permit, regardless of size, are subject to the terms and conditions contained herein. Approval to operate under this permit shall be valid for not longer than 12 months. This permit does not relieve the permittee of the responsibility of obtaining other required permits if any. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 2 of 13 The Department will require a person to obtain an individual permit when the waste disposal does not meet the eligibility criteria of this general permit, contributes to pollution, has the potential to cause or causes an adverse impact on public health or water quality, or a change occurs in the availability of technology or practices for the control or abatement of pollutants contained in the disposal. This permit supercedes State waste disposal general permits numbered 9940DB003 and 0240DB001. This permit is issued under provisions of Alaska Statute 46.03, the Alaska Administrative Code as amended or revised, and other applicable State laws and regulations. This permit is effective upon issuance and may be terminated, modified, or renewed under provisions of Alaska Statute 46.03 and the Alaska Administrative Code as amended or revised. March 9,2004 Date Issued !1b~ J, JIll t/L.- Wilham D. McGee Technical Engineer March 8, 2009 Expiration Date · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · .' · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 3 of 13 TABLE OF CONTENTS 1 OPERATIONAL REQUIREMENTS ............. ........ ..... ........ .... ......... ............ ........ ........ ...................... 4 1.1 NOTICE OF DISPOSAL.. ................................... ........ ............ ........... .......... ......... ..... ...... .... ...... 4 1.2 TERMS AND CONDITIONS ................ .... ......... ............... ................ ................. ................. ...... 4 1.3 MONITORIN"G ........................................................................... ................... ............................. 6 1.4 REPORTWG ............... ......... ..... ..... .............. ............. .............. ........ .............. .............:............ ... 7 1.5 RECORDS RETENTION..... ........................ .............. ....-........ ........... .................... .............. ...... 8 1.6 CHAN'GE IN' DISCHARGE ......... ........ ........................ ..-... ......... .... ........................................... 8 1.7 ACCIDENTAL DISCHARGES ................... ...... ....... .............. .... ........ ................. ...................... 9 1.8 NONCOMPLIANCE NOTIFICATION ............. .........-....... ................................. ............... ....... 9 1.9 RESTRICTION OF PERMIT USE .......................-.................................................................... 9 1.10 TRANSFER OF OWNERSFIIP ..................................... ......... ..............-........................... .......... 9 2 GENERAL REQUIREMENTS ... ....... ........................... ...... ........... .............................. ............... ..... 11 2.1 ACCESS AND rnSPECTION..................... .................. .... ..... ...................................._..... ........ 11 2.2 INF'ORMA. TION ACCESS......... ...... ...... .'........ ....................... ........ ........... ............................... 11 2.3 CNTI., AND CRJJv.1IN'AL LIABII.ITY ......... ...... ................ .-... ...;.... .......................... ................ 11 2.4 A V AIT..ABII.ITY.......................... ........................................... .................................................. 11 2.5 ADVERSE Il\1P ACT ........ ......._...................................................;..................................._........ 11 2.6 CULTURAL OR PALEONTOLOGICAL RESOURCES ....................................................... 11 2.7 OTIffiR LEGAL OBLIGApONS ....................................................................... ..:...,.......... ...... 11 2.8 POLLUTION PREVENTION ...... .............. ~........................... ..... ........ ..................................... 12 3 DISCHARGE MONITORING REPORT FORM ..............................:............................................. 13 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 4 of 13 1 OPERATIONAL REQUIREMENTS 1.1 NOTICE OF DISPOSAL 1.1.1 An applicant wishing to conduct a disposal activity under this permit and whose total discharge volume is equal to or greater than 10,000 gaIlons, must submit a Notice of Disposal to the appropriate office ofthe Alaska Department of Environmental Conservation listed in Section 1.4. The Notice of Disposal form can be found and submitted electronically or printed and mailed to the Department by visiting its website at http://www_state.ak.us/dec/dawq/waterpermits/index.htm. If unable to download the pennit or Notice, call the Department at one of the numbers listed in Section 1.4. The Notice of Disposal must be submitted to the appropriate office at leastthirty (30) days prior to the start of the disposal activity. 1.1.2 A Notice of Disposal is not required for disposals of less than a total of 10,000 gallons. However the water quality standards in 18 AAC 70 and the terms and conditions in this permit still apply to all activities conducted under this pernrit even if submittal of a Notice of Disposal is not required. 1.1.3 The Notice of Disposal must be accompanied by the appropriate fee as found in 18 AAC 72.956 or any such regulations as amended. The permit fees can be found the Department's website at: http://www.state.ak.us/dec/water/wwdp/online pernritting/general permit aut h fees.htm 1.1.4 An applicant must have written authorization ftom the Department before conducting a disposal activity under this pemrit which results in a total discharge of 10,000 gallons or more of contained water. The Department will, in its discretion, deny use of this permit, or attach or waive conditions appropriate for a specific disposal activity in the authorization. 1.1.5 The written authorization is effective for the period beginning on the effective date of the authorization and lasting thTough its expiration date. If this pernrit is modified or renewed during the term of the authorization, the new pennit requirements apply. 1.2 TERMS AND CONDITIONS 1.2.1 The permittee is authorized to dispose of, or discharge, wastewater as specified -ib this subsection. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 50[13 1.2.2 Wastewater discharged shall not exceed the following limitations: Effluent Characteristic Turbidity Settleable Solids Total Chlorine pH Total Aqueous Hydrocarbons (TAqH) Total.Aromatic Hydrocarbons (T AH) Maximum Value 5 NTU above background 1 0.2 mL/L (milliliters per liter) 11 µg!L fresh water or 7 _5 µg/L saltwater (micrograms per liter) Between 6.5 and 8.5 pH units or within 0.2 units (marine water), or 0.5 units (fresh water) of the receiving water pH at all times. 15 µg!L (micrograms per liter) 10 µg/L (micrograms per liter) 1.2.3 The discharge shall not cause thennal or physical erosion. 1.2.4 The discharge shall not cause resuspension of sediments upon discharge to receiving waters. 1.2.5 The discharge shall be free of (a) any additives such as antifreeze solutions, methanol, solvents, and corrosion iDhibitors; (b) solid wastes and garbage; ( c) toxic substances; (d) grease or oils which exceed the effluent limitations in Section 1.2.2 or produce a sheen; (e) foam ín other than trace amounts; or (f) other contaminants. 1.2.6 The discharge shall not cause a violation of the Alaska Water Quality Standards (18 AAC 70). 1.2.7 The discharge shall not cause adverse effects to aquatic or plant life, their reproduction or habitats. 1.2.8 The Department will, in its discretion, attach terms and conditions to the written authorization required by Section 1.1.4, as appropriate. 1.2.9 This pennit does not constitute a grant of water rights. 1.2.10 An applicant must contact the Department of Natural Resources, Office of Applies to discharges to the waters of the state only. Not in effect for disposals which freeze upon discharge. Shall not have more than 10% increase in turbidity when the natural condition is more than 50 NTU, not to exceed a maximum increase of 15 NTU. Shall not exceed 5 NTU over natural conditions for all lake waters. , · · · · · · · · It · · · · · · · · · · · · t · · · · · · · · · · · · I. t · · · · PERMIT NO. 2003-DB0089 Page 6 of 13 Habitat Management and Permitting, two weeks prior to any discharge, if the discharged water will enter fish-bearing waters. 1.2.11 If a toxic pollutant (including oil, grease, or solvents) concentration standard is established in accordance with 18 AAC 70 for a pollutant present in this discharge, and such standard is more stringent than the limitation in this permit, this permit is considered to be modified in accordance with the toxic pollutant concentration standard. 1.3 MONITORING 1.3.1 Test procedures used for sample analysis shall conform to methods cited in 18 AAC 70.020(c), or as such regulations maybe amended. The permittee may substitute alternative methods of monitoring or analysis upon receipt of prior written approval n-om the Department. 1.3.2 The permittee shall use current calibrated equipment when ta1àng field measurements, and shall use bottles and sampling procedures provided by the laboratory when ta1àng samples for laboratory analysis. , , 1.3.3 Samples and measurements taken shall be representative of the volume and nature of the monitored activity. 1.3.4 For discharges equal to or greater than 10,000 gallons, the permittee shall monitor the contained water, background natural condition, or the wastewater stream of the discharge in the following manner and n-equency. Monitoring results n-om all before discharge samples must be received and reviewed by the permittee before discharging in order to insure compliance with the conditions in Section 1.2.2. For discharges less than 10,000 gallons, the permittee is required to conduct the Field monitoring to insure compliance with the conditions in Section 1.2.2, but is not required to conduct the T AqH or T AH Lab monitoring unless there is a sheen. -, · · · · · · · · I · · · · · · · · · I · · · · · It · · · · · · · · PERMIT NO. 2003-DB0089 Effluent Characteristic Total Flow Turbidity (NTU) Settleable Solids Total Chlorine pH Total Aqueous Hydrocarbons (T AqH) Total Aromatic Hydrocarbons (TAB) Page 7 of 13 In accordance with this section, the fo11owing requirements apply: Sample Location Effluent Effluent & Background Effluent Containment Containment Containment Containment Minimum Frequency Daily Before discharge and 1 per week Before discharge and 1 per week Before discharge Before discharge Before discharge Before discharge Sample ~ Estimate or Measured Grab Grab Grab Grab Grab Grab Sample method Field Field Field (see note 11 to 18 AAC 70.020(b )) Field Field Lab method 602 or 624 (see note 7 to 18 AAC 70.020(b)) Lab method 610 or 625 (see note 7 to 18 AAC 70.020(b)) 1.3.5 If the permittee monitors any contained water, discharge, or surface water characteristic identified in this permit more frequently than required, the results of such monitoring shall be reported to the Department in the monitoring report required under Section 1.4 of this pemiit. 1.3.6 Additional monitoring parameters' and increased monitoring ftequency may be required on a case-by-case basis. 1.3.6 Specific requirements for monitoring maybe waived by the Department in the authorization to discharge under this pennit if the information submitted in the Notice of Disposal demonstrates no reasonable potential to exceed the effluent limitations in Section 1.2.2 of this pemrit. 1.4 REPORTING For a: discharge equal to or greater than 10,000 ga11ons, monitoring results shall be summarized, reported to the Department, and postmarked, faxed, or emailed no later than the 14th day of the month fo11owing the month that each sampling occurs. Reporting sha11 begin when the discharge starts. Reporting sha11 be done on the electronic fonD. attached to the authorization or on the form provided in Section 3. Signed copies of the monitoring results and all other reports required herein, shall be submitted to the Department office nearest the discharge location at the following addresses: I. · · · · · · I · · · · · · · · .i · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 8 of 13 State of Alaska Department of Environmental Conservation Division of Water 610 University Avenue Fairbanks, Alaska 99709-3643 Telephone (907) 451-2360 Fax (907) 451-2187 Email: wqpermit@dec.state.ak.us State of Alaska Department of Environmental Conservation Division of Water 410 Willoughby Juneau, Alaska 99801-1795 Telephone (907) 465-5300 Fax (907) 465-5274 Email: wqpermit~dec.state.ak.us State of Alaska Department of Environmental Conservation Division of Water 555 Cordova Street Anchorage, Alaska 99501 Telephone (907) 269-7500 Fax (907) 269-7652 Email: wqpermit@dec.state.ak.us A false statement knowingly made by the permittee, the operator, or other employee, including a contractor, on any such report may result in the imposition of criminal penalties as provided for under AS 46.03.790. 1.5 RECORDS RETENTION All records and information resulting ftom the monitoring activities required by this permit, including all records of analyses performed, calibration and maintenance of instrumentation, and recordings ftom continuous monitoring instrumentation shall be retained in Alaska for three years for observation by the Department. Upon request ÍÌom the Department, the permittee shall submit certified copies of such records. 1.6 CHANGEINDISCHARGE A discharge authorized herein shall comply with the terms and conditions of this permit. The discharge of any pollutant or toxic material more ftequently than specified, or at a concentration or limit not authorized, shall constitute noncompliance with the permit. Any anticipated construction changes, flow increases, or process modifications which will result in new, different, or increased discharge of pollutants and will cause a violation of tlns permit's limitations are not allowed under this permit and must be reported by submission of an individual waste disposal permit application or a revision ofthe Notice of Disposal. Physical changes to the treatment process may be subj ect to plan review. · · · · · · · · · · I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 9 of 13 1.7 ACCIDENTAL DISCHARGES The permittee shall provide protection from accidental discharges not in compliance with the terms and conditions of this permit. Facilities to prevent such discharges shall be maintained in good working condition at all times. 1.8 NONCOMPLIANCE NOTIFICATION 1.8.1 If, for any reason, the permittee does not comply with or will be unable to comply with any tenn or condition specified in this permit, the pennittee shall report the noncompliance to the Department within 72 hours of becoming aware of such noncompliance. This report shall be by telephone, fax, email, or in the absence of these avenues, by mail. 1.8.2 A written follow-up report shal1 be sent to the Department within seven (7) days of the noncompliance event. The written report shall contain, but is not limited to: 1.8.2.1 Times and dates on which the event occurred, and if not corrected, the anticipated time the noncompliance is expected to continue. 1.8.2.2 A detailed description of the event, including quantity and type of materials causing the noncompliance. 1.8.2.3 . Details of any actual or potential impact on the receiving environment or public health. 1.8.2.4 Details of actions taken or to be taken to correct the cause(s) of the event and to remedy any damage that results from the event. 1.9 RESTRICTION OF PERMIT USE .~ The department will require a person with a general pennit authorization to obtain an individual pennit if the department determines that the disposal does not meet the requirements of this permit, the disposal contributes to pollution, there is a change in technology, or the environment or public health are not protected. 1.10 TRANSFER OF OWNERSHIP In the event of any change in control or ownership of the permitted facility, the permittee shall notify the succeeding owner or controller of the existence of this permit and the 'authorizati6:riby letter, a copy of which shall be forwarded to the Department at the appropriate office listed in Section 1.4. The original permittee remains responsible for permit compliance unless and until the succeeding owner or ., · · · · · I · · I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 10 of 13 controller agrees in writing to assume such responsibility and the Department approves assignment of the pennit. The Department will not unreasonably withhold such approval. I. I I I I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 11 of 13 2 GENERAL REQUIREMENTS 2.1 ACCESS AND IN'SPECTION The permittee shall allow the department access to the permitted facilities at reasonable times to conduct scheduled or unscheduled inspections or tests to determine compliance with this pennit, the terms of the authorization to operate under this permit, State laws, and regulations. 2.2 INFORMATION ACCESS Except where protected from disclosure by applicable state or federal law, all records and reports submitted in accordance with the terms and conditions of this permit shall be available for public inspection at the appropriate State of Alaska Department of Environmental Conservation office. 2.3 CIVIL AND CRJMINAL LIABILITY Nothing in this permit shall relieve the permittee from any potential civil or cri.minalliability for noncompliance with this permit, their authorization to operate, or applicable laws and regulations. 2.4 AVAILABILITY The permittee shall post or maintain a copy of this permit and their authorization available to the public at the disposal facility. 2.5 ADVERSE IMP ACT The permittee shall take all necessary means to minimize any adverse impacts to the receiving waters or lands resulting from noncompliance with any limitation or condition specified in this permit, including additional monitoring needed to determine the nature and impact of the non-complying activity. The permittee shall clean up and restore all areas adversely impacted by the non-complying activity. 2.6 CULTURAL OR PALEONTOLOGICAL RESOURCES If cultural or paleontological resources are discovered as a result of this disposal activity, work which would disturb such resources is to be stopped, and the State Historic Preservation Office, Division of Parks and Outdoor Recreation, Department of Natural Resources (907) 762-2622, is to be notified immediately. 2.7 OTHER LEGAL OBLIGATIONS This permit-does not relieve the permittee from the duty to obtain any other I, t · · · · · · · · · · · I · · · · · · · I · · · · · · · · · · · · · · · · · · · · · PERMIT NO. 2003-DB0089 Page 12 of 13 necessary permits or approvals from the Department or other local, state, or federal agencies, and to comply with the requirements contained in any such pennits. All activity conducted and all plan approvals implemented by the pennittee pursuant to the terms of tms permit shall comply with all applicable local, state, and federal laws and regulations. 2.8 POLLUTION PREVENTION In order to prevent and minimize present and future pollution, when ma1áng management decisions that affect waste generation, the permittee shall consider the following order of priority options as outlined in AS 46.06.021: . waste source reduction, · recycling of waste, · waste treatment, and · waste disposal. .. ~ · · PERMIT NO. 2003-DB0089 8 83 · · 8 · It I I · · · · · · I · · · · · · · · · · · · · · · · · · · · · · · · Page 13 of 13 DISCHARGE MONITORING REPORT FORM DISCHARGE MONITORING REPORT PERMIT NUMBER: 2003-DBOOB9 COMPANY NAME I ADDRESS I PHONE NO. SAMPLE PERIOD FACILITY NAME I LOCATION FROM: TO: SAMPLE TYPE estlmeas grab grab grab grab grab grab Note: An electronic D:rvæ. fOID1 received with an authorization to operate under this permit will be tailored to the authorized discharge and will include instmctions on how to submit it. CON CENTRA TION PARAMETER Minimum Maximum FREQUENC YOF ANALYSIS Average UNITS Sample Result Flow gpd daily Sample Result Turbidity Settleable Soiids NTU as specified Sample Result Before µg/l discliarge Sample Result' Before µg/l discharge Sample Result mUI as specified Sample Result Before µg/l --discharge Sample Result Before µg/l discharge Sample Result Sample Result Sample Result Total Aromatic Hydrocarbons Total Aqueous Hydrocarbons Chlorine (fresh water) Chlorine (Saltwater) Type or Print Name and Title of Principal Executive Officer or Authorized Agent: DATE: SIGNATURE: · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Appendix F TEMPORARY DISCHARGE PERMIT · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Municipality of Anchorage Water Quality Section· 2300 Hutson Drive· Anchorage, Alaska 99502· pretreatment@awwu.biz Anchorage Water and Wastewater Utility Mayor Mark Begich Treatment Division Temporary Discharge Permit August 19,2004 Jesse Mohrbacher Fairweather E&P Services, Inc 2000 East 88th Avenue, Suite 200 Anchorage, AK 99507 Re: Discharge of equipment cleanup rinse water from well cementing project In accordance with Anchorage Municipal Code (AMC Chapter 26.50 Sewer Service), this temporary permit authorizes the disch cleanup water from installing a cement plug in Huston No.3 Well on b Gas Conservation Commission in accordance with the Fairweat 11, 2004 application and other submittals. The discharge will be up designated dump site discharged to an A WWU The discharge must not works operation, or pose a ", "interfere" with treatment nt. Upon review of information the discharge. ant potential for problems with Please contact me at 751-2219 when directions and access. of discharge is known so I can provide Thank you for your cooperation with the A WWU Industrial Pretreatment Program. Let me know of any questions. ~~~ Edward Ray Tatro, Industrial Pretreatment Inspector A WWU Treatment Division, Water Quality Section mai Ito:Edward. Tatro@awwu.biz Cc: Dennis Vandelaar, General Foreman, Field Service Section, Customer Service Division Community, Security, Prosperity .. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Appendix G ApPROVAL To TRANSPORT DIESEL CONTAMINATED GRAVEL · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Page 1 of2 Jesse Mohrbacher From: To: Cc: Sent: Subject: "Olson, Eileen" <Eileen_Olson@dec.state.ak.us> "'Jesse Mohrbaeher'" <jesse@fairweather.com> <markroy@as&g.eom>; "Olson, Eileen" <Eileen_Olson@dec.state.ak.us> Friday, August 13, 2004 3:34 PM RE: Houston #3 Diesel Contaminated Gravel ApprovaJ is granted to transport the gravel to ASR and thermally remediate it, with the understanding that the contaminant is only diesel. Please notify me when you have completed the work. J've ce'd Mark Roy of ASR on this email. If he needs my signature I can fax approval to ASR. Eileen Olson 269-7527 -----Original Message----- From: Jesse Mohrbacher [mailto:jesse@fairweather.com) Sent: Friday, August 13, 2004 3:10 PM To: Eileen Olson Subject: Fw: Houston #3 Diesel Contaminated Gravel Hi Eileen, are you able to help us on this issue? Regards, Jesse Mohrbacher Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200 i\nchorage,AJC 99507 907-258-3446 650 N Sam Houston Pkwy E, Suite 505 Houston, TX 77060 281-445-5711 ----- Original Message ----- From: Jesse Mohrbacher To: Eileen Olson Cc: James Nunley; Robert Crandall; Bill Penrose Sent: Friday, August 06, 2004 11: 16 AM Subject: Houston #3 Diesel Contaminated Gravel Hi Eileen, AS&G has requested that we obtain authorization to transport approximately 2 cubic yards of diesel contaminated soils prior to thermal treatment at AS&G's Anchorage facility. The soil is stockpiled at the Houston #3 well in Houston, Alaska. Fairweather is plugging 5 coalbed methane exploration wells in the area on behalf of the Alaska Oil and Gas Conservation Commission. The wells were drilled back in 1997-2000 by a company called Growth Resources International that has become defunct. At the #3 well, a generator developed a fuel leak over a period of approximately · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Page 2 of2 two weeks and diesel dripped onto the ground. The soil was excavated and stockpiled on liner material and covered back in 1998. Fairweather was not involved in the project then and we have no direct knowledge of any ADEC reporting or other actions taken at the time other than the excavation of soil and stockpiling of same. Our intent is to collect these affected soils and deliver them to AS&G for treatment on or about August 20. We are hereby requesting approval for such activity. Please note that we are also working with Judd Petersen and Sharmon Stambaugh of the ADEC on some reserve pit issues. Regards, Jesse Mohrbacher Fairweather E&P Services, Inc. 2000 East 88th Avenue, Suite 200 J\nchorage,AJC 99507 907-258-3446 650 N Sam Houston Pkwy E, Suite 505 Houston, TX 77060 281-445-5711 ., · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · I · · · · · · · Appendix H COMPLETION REpORTS AND PHOTOS · · · · · · · · · · · · · · · · · · · · · · · · · · .. · · · · · · · · · · · · · · · · -- --.... 1Io~ _ _II.. E & P SERVICES, INC. September 17, 2004 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, Alaska 99501-3539 Re: Houston No.'s 1,2,3,4, and 22 Completion Reports State of Alaska, Department of Administration, AOGCC Contract # 0501 Dear Mr. Norman: Please find attached completed Forms 10-407 for the Houston No.'s 1,2,3,4 and 22 well P&A's that Fairweather E&P Services, Inc. completed during the past month on behalf of the AOGCC. The completion reports have been prepared from field data recorded during the work and include photo documentation of the P&A operations. A summary of operations for the closure of the Houston No.1 reserve pit is also included. The entire project went very well and was completed without incident. Furthermore, we believe that the local landowners at each site are very pleased with the work that has been done. ' Fairweather greatly appreciates the opportunity to perfonn this project for the Commission. If you have any questions or require any additional infonnation, please contact the undersigned at 907-258-3446. Sincerely, FAIRWEATHER E&P SERVICES, INC. ~~ Jes-se·MÐhrbaeher· .. President Attachments: Fonns 10-407, Well Completion Reports cc: Bill Penrose, Fairweather 2000 East 88th Avenue' Anchorage. Alaska 99507 . (907) 258~3446 · FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505' Houston, Texas 77060' (281) 445-5711 . FAX (281) 445-3388 , · þ · · 1a. Well Status: Þ · 2. Operator Name: I .. Growth Resources International/AOGCC ., 3. Address: I · 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 . 4a. Location of Well (Governmental Section): Surface: 1545' FSl, 1436' FEl, Sec 21, T18N, R3W, S Meridian · Top of Productive Horizon: · Same Total Depth: · · 4b. Location of Well (State Base Plane Coordinates): Surface: x- y- · TPI: x- y- Total Depth: x- y- 18. Directional Survey: Yes U No STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilD Gas 0 Plugged 0 Abandoned 0 Suspended 0 WAG 0 1b. Well Class: 2OAAC25.105 20AAC25.110 Development 0 Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 I 5. Date Comp., Susp., or 12. PermittoDrill Number: Aband.: 27-Aug-2004 197-241 6. Date Spudded: 13. API Number: January 8,1998 50-009-20009-00 7. Date TD Reached: . 14. Well Name and Number: January 8,1998 Houston No.1 8. KB Elevation (ft): 15. FieldlPoo/(s): Ground Level 9. Plug Back Depth(MD+TVD): 240' 10. Total Depth (MD + TVD): 16. Property Designation: 1730 11. Depth Where SSSV Set: 17. Land Use Permit: N/A 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NIA feet MSL NIA GINJD WINJD WDSPLD Zone- Zone- Zone- U None WT. PER FT. 55.5 20 9.5 GRADE C-75 J-55 J-55 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE Surface 36 Surface 36 Surface 492 Surface 492 Surface 1600 Surface 1600 3. Perforations open to Production (MD + TVD of Top and Bottom terval, Size and Number; if none, state "none"): o perforations in this well. PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): NfA Oil-Bbl: Gas-MCF: Water-Bbl: ... Oil-Bbl: Gas-MCF: Water-Bbl: ... Hours Tested: Production for Test Period Calculated 24-Hour Rate CEMENTING RECORD AMOUNT PULLED Casing Press: 12-12" 8-112" 5-1/2" Driven Cement to surface Not to surface Csg cut 12' below grade 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) SIZE NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Surface to 50' 12 sax in 4-112" x 7" annulus Surface to 240' 18 sax Type I in 4-112" casing Choke Size: I Gas-Oil Ratio: Oil Gravity - API (corr): CORE DATA ief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). ubmitcore chips; if none, state "none". None. --- Form 10-407 Revised 12/2003 CONTINI IFf) ON RF"FP<:.'C · · 28. · NAME · None available · · · · · · · · · · · · 130. · ,31. II¡ Printed Name: J"". :ø...:: .J / / / _____ · Signature: r-- ~~4¢L/' · · · · · · · · · · · · · · · · · · · · · · GEOLOGIC MARKERS MD TVD 29. FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". List of Attachments: Wellbore schematic, P&A photos, operations summary. I hereby certify that the foregoing is true and correct to the best of my knowfedge. Contact: Jesse Mohrbacher Title: President, Fairweather E & P Services, Inc. Phone: (907) 258-3446 Date: /7/ ~ /01' INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection. Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. (tern 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 · · · · · · · · · · I I · I · · · · · · · · · · · , · · · · · · · · · · · · Houston No.1 Plug and Abandonment Daily Operations Summary Tuesday,August24,2004: 11 :00 am - Decided to start with Hou #1 as it is at staging area. Removed blind flange from well. Plumb bob well to determine hole depth at 220'. RU and commenced running 1" pipe in 1 0' joints. Got 1 0 jts in well, string got past slips. Lost 10 jts. Rigged up again using extendaboom forklift to hold snatch block. Ran 20 joints into well, commenced rigging up cementer. R&K arrived @ 12:30 PM. Held pre-job safety meeting. 12:45 John Spaulding, AOGCC arrived. R&K having problems with triplex pump Detroit engine. Circulated bottoms up on Houston #1. Rigged up cement unit to pump cement in Houston #1. Needed 18 sax 15.2 ppg cement plus 9 sax for the unit. Commenced cementing at 4:40 pm. Cement returns to surface at 5:05 pm. RO R&K. Prep for Houston # 22. Sent R&K hands to hotel for night. Thursday, August 26, 2004: Excavated around Houston #1 well in order to cut casing. . Had to remove 8' diameter 8' deep (original cellar) culvert. Also removed mouse hole (10' deep). Excavated around well to 10'. Prepare to cut well casings. John Spaulding with AOGCC needs to be on site for witness. Friday, August, 27, 2004: Houston #1 - Excavated to 10' and cut off casing. John Spaulding on site along with Bob Crandall and an AOGCC attorney. All were concerned that there was no cement in the 4-1/2'x7" annulus. Discussed with John Spaulding. We agreed to run 50' of %" and 1" pipe to get cement into the annulus. Mixed up 2-1/2 bbls of cement and pumped into the annulus. Good returns at surface. Called John Spaulding, he requested that we photograph the annulus, weld on the 10 plate and backfill the hole (rain was filling in the hole and making it unstable). Commenced welding on the ID plate and backfilling. Saturday, August 28, 2004: John Spaulding inspected backfill job around well. He is aware that there is more to do with overall site grading and reserve pit closure. Monday, August 30, 2004: Smoothed out well location and received John Spaulding's on-site closure approval for well area. Reserve pit work at Houston #1 continuing with water pump off and related tasks. . · · · · · · · All depths BGL · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4.5" casing @ 1600' · · · · · · · GL~ ~- Casing Strings capped w/1S" diameter X 1/4" steel plate@ 12' BGL 10" Conductor Driven @ 36' 105' of 1" pipe dropped on top of pre existing plug. 7" casing @ .492' cmtd to surface Houston # 1 - TD @ 1730' Fairweather E & P Services. Inc. GRllnc. C/O AOGCC Houston # 1 Well Schematic Permit # 197-241 API # 50-009-20009-00 Final Abandonment Status 3/4 " pipe from surface to 50' in 4.5" x 7" annulus 15 PPG +/- Type I cement from 240' tQ surface 1" pipe from surface to 230' - Pre-existing Cement plug 240' to 840' [2]- Water/Formation Fluid ---+ Cement Rev. 01 IN 09109/04 Drawing Not to Scale · · ,. · · · · · · · · · · · · I · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston #1 Photos Houston #1 Photos Photo 1: Houston #1 Well at start of job. Photo 2: Houston #1 cementing operations. 1 ., It · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Photo 3: Cutting off casing on the Houston #1 well. Photo 4: Houston #1 cemented to surface. Houston #1 Photos 2 ., · · · · · It · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Photo 5: Welding marker plate on Houston #1. Photo 6: Well marker plate welded on casing of Houston #1. Houston #1 Photos 3 ., · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Photo 7: Backfilling excavation at Houston # 1. Photo 8: Final site grade, Houston #1. Houston #1 Photos 4 t t t t t Þ Þ Þ · · · · · · · · · · · · · · · · · · · · It · · · · · · · · · · · · · · Houston No.1 Reserve Pit Closure Operations Summary Monday August 30, 2004: Commence reserve pit activities by receiving backfill gravel and pump off of reserve pit water in accordance with ADEC discharge permit. Tuesday August 31, 2004: Continue with water pump off. Pull up liner material and place same in dumpster. Surveyed reserve pit comers and waste dimensions prior to backfill as part of ADEC closure plan. Wednesday, September 1, 2004: Conducted site grading activities around reserve pit. Backfilled pit 30%, rain slowing progress. September 2-8, 2004: Continued backfilling pit after rainy weather diminished. Backfilled reserve pit area with total of 650 cubic yards of gravel and 150 cubic yards oftopsoil. Smoothed entire former reserve pit area to airstrip grade and seeded topsoil with grass seed. Completed several small projects for local landowners with heavy equipment on-site. - , · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston No. 1 Reserve Pit Closure Photos Photo 1: Houston No.1 reserve pit at start of job, looking northeast. Photo 2: Houston No.1 reserve pit at start of job, looking west. · · · · · · · · · · · · · · · · · · · · · Photo 3: Houston No.1 reserve pit during backfill operations. · · · · · · · · · · · · · · · · · · Photo 4: Houston No. 1 reserve pit, final grade at end of airstrip. · · · · · · · · · 1a. Well Status: · GINJD WINJD WDSPLD · 2. Operator Name: I Growth Resources InternationallAOGCC · 3. Address: I · 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 4a. Location of Well (Governmental Section): · Surface: 1216' FSL, 2111' FEL, Sec21, T18N, R3W, S Meridian · Top of Productive Horizon: . Same Total Depth: · .4b. Location of Well (State Base Plane Coordinates): Surface: x- y- ITPI: x- y- ..Total Depth: x- y- 18. Directional Survey: Yes U No STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilU GasD Plugged U Abandoned~ SuspendedO WAGD 1b. Well Class: 2OAAC25.105 20AAC25.110 Development 0 Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 I 5. Date Comp., Susp., or 12. Permit to Dri/l Number: Aband.: 27-Aug-2004 197-242 6. Date Spudded: 13. API Number: January 29,1998 50-009-20010-00 7. Date TD Reached: 14. Well Name and Number: January 29, 1998 Houston No.2 8. KB Elevation (fi): 15. Field/Pool(s): Ground Level 9. Plug Back bepth(Mb+ TVD): 2105' 10. Total Depth (MD + TVD): 16. Property Designation: 2105 11. Depth Where SSSV Set: 17. Land Use Permit: NIA 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NlA feet MSL NIA Zone- Zone- Zone- w None WT. PER GRADE FT. CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD AMOUNT PULLED PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): N/A Oil-Bbl: Gas-MCF: Water-Bbl: .... Oil-Bbl: Gas-MCF: Water-Bbl: .... Surface Surface 462 1662 20 9.5 J-55 J-55 3. Perforations open to Production (MD + TVD of Top and Bottom tervel, Size and Number; if none, state "none"): one. ate First Production: IA ate of Test: Hours Tested: Production for Test Period Calculated 24-Hour Rate Casing Press: Surface Surface 462 1662 8-1/2" 5-1/2" Cement to surface Cement to surface Csg cut 4' below grd 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) SIZE NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED PBD to Surface 135 sax Type I, bullheaded Choke Size: I Gas-QiI Ratio: Oil Gravity - API (corr): CORE DATA ief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). ubmit core chips; if none, state "none". None. Form 10-407 Revised 12/2003 rnNTINI f¡::n 0"1 R~'I""(,'" · · 28. · · None available · · · · · · · · · · · · lao. · .31. · Printed Name: Jesse Mohrbacher · · · · · · · · · · · · · · · · · · · · · · · NAME GEOLOGIC MARKERS MD TVD 29. FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". List of Attachments: Wellbore schematic, P&A photos, operations summary. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Jesse Mohrbacher Title: President, Fairweather E & P Services. Inc. Signature: ~~ Phone: (907)2~3446 Date: /1"' sr -Df INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool With production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPJ (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none", Item 29: List all test information. If none, state "None", Fe'm 10-.:11)7 R"'·"..rl1?I?r')~ , · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston No.2 Plug and Abandonment Daily Operations Summary Thursday, August 26, 2004 Raining heavily. R&K decided to remove VMT, tank, triplex from their float as difficult to back down to #2 well. RU to inject cement rinse water from Wells 1, 22, 4 for injection test in Houston #2. At 5:20 pm, commenced bull heading cement rinse water. Pumped up to 1500 psi pressure (2" threaded csg valve rated for only 1.500 psig). Formation would not take fluid. Held pressure at 1500 for 45 min, injected only 1 bbl or less water. Pressure on formation at casing shoe was 1500 psi surface plus 720 psi hydrostatic = 2200 psi or 25+ ppg mud weight equivalent. Checked for an obstruction in the 4-1/2". Ran weighted string to 500'. No obstruction. Cleaned up cementer, left R&K Industrial equipment on site. Friday, August, 27, 2004: RU R&K. Installed 3000 #WP nipples and hi press valve onto wellhead for pumping into 4-1/2" casing. Reinstalled blind flange on top of tree. 9:35 am: began pumping cement rinse water. Pressured up to 1850 psi then formation started taking fluid. Pressure dropped to 1450 psi and stayed there throughout injection test. Pumped 56 bbls fluid in 50 min. At shut in, pressure dropped quickly to 1200 psi and gradually bled off to 950 psi in 20 min. By 2:30 pm, pressure had dropped to 500 psi. 2:55 pm, commenced bullhead pumping 28 bbl 15.2 ppg cement plug. Pumped throughout job at 1400 psi. Pump pressure gradually built up to 1600 psi at end of pumping indicating squeeze job. 3:24 pm, completed pumping cement plug - 28 bbls in 29 min. RD R&K Industrial, moved to Houston #1 for annulus job. Monday, August 30, 2004: Excavated well cellar and removed 8'H x 10'D cylindrical well cellar. Cutoff well casing 4' below grade and welded 18" diameter 1/4" thick marker plate on well casing. Backfilled excavation and received site closure approval from John Spaulding. , · t · · · All depths BGL · · GL----- · · · · It · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Casing Strings capped w/1S" diameter X 114" steel plate @ 4' BGL 7" casing @ 462' cmtd to surface 4.5" casing @ 1662' cmtd to surface - Houston # 2 Failweather E & P Services. Inc. TD @ 2105' GRllnc. C/O AOGCC Houston # 2 Well Schematic Permit # 197-242 API # 50-009-20010-00 Final Abandonment Status Casing filled with 15 PPG +1- Type I cement by bullheading to surface Well never perforated Shoe sqeezed by bu/lheading cement ~,... '. ," "':'1 ~'~-~;~£~r:s~ -+ Cement Rev, 01 IN 9/09/04 Drawing Not to Scale - · · t I · Houston #2 Photos It · · · · · · · · · · · · · · · · · · Photo 1: Houston #2 at start of job. · · · · · · · · · · · · · · · - ~ · Photo 2: Moving cementing unit to Houston #2. · · · .. · · · · · · · · I · · · · · · · · · · Photo 3: Beginning excavation on Houston #2. · · · · · · · · · · · · · · · · · · Photo 4: Houston #2 cutoff and cemented to surface. · · · · · - Houston No.2 with marker plate installed. Photo 6: Houston No.2 final site grade. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilD GasD Plugged 0 AbandonedEj SuspendedD WAGD 1b. Well Class: 20MC25.105 20MC25.110 Development 0 Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 I 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 28-Aug-2004 197-243 6. Date Spudded: 13. API Number: January 21,1998 50-009-20011-00 7. Date TO Reached: 14. Well Name and Number: January 21,1998 Houston NO.3 8. KB Elevation (ft): 15. FieldIPool(s): Ground Level 9. Plug Back Depth(MD+ TVD): 1900' 10. Total Depth (MD + TVD): 16. Property Designation: 2030 11. Depth Where SSSV Set: 17. Land Use Permit: NIA 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NIA feet MSL NIA , · t · · 1a. Well Status: · · · · · · · Total Depth: · · 4b. Location of Well (State Base Plane Coordinates): Surface: x- y- · TPI: x- y- · Total Depth: x- y- · 18. Directional Survey: Yes U No · 21. Logs Run: Cement Bond Log .22. · CASING WT. PER GRADE · FT. GINJD WINJD WDSPLD 2. Operator Name: I Growth Resources IntemationallAOGCC 3. Address: I 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 4a. Location of Well (Governmental Section): Surface: 1271' FSL, 2542' FWL, See 21, T18N, R3W, S Meridian Top of Productive Horizon: Same Zone- Zone- Zone- ~ CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): N/A Oil-Bbl: Gas-MCF: Water-Bbl: ... Oil-Bbl: Gas-MCF: Water-Bbl: .. 20 9.5 J-55 J-55 Surface Surface 505 2002 23. Perforations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): , . Perforations @:1338'-1342' 1356'-1362' 150T-1512' 1820'-1826' 1848'-1856' 6. ate First Production: IA ate of Test: Hours Tested: Production for Test Period Calculated 24-Hour Rate low Tubing ress. Casing Press: CEMENTING RECORD AMOUNT PULLED Surface Surface 505 2002 8-1/2" 5-1/2" Cement to surface Cement to surface Csg cut 4' below grd 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) Pump pkr @ 1900' SIZE N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Surface to 1856' 143 sax Type I cement Choke Size: GaS-Oil.Ratio: Oil Gravity - API (corr): 7. CORE DATA rief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". None. . Form 10-407 Revised 12/2003 CONTINUED ON RFV¡:::RC:::I= , · 28. · · None · · · · · · · · · I · · · 30. · .31. · Printed Name: Jesse Mohrbacher · Signature: ~~ · · · · · · .' · · · · · · · · · · · · · · · NAME GEOLOGIC MARKERS MD 29. FORMATION TESTS Include and briefly summarize test resuits. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". TVD List of Attachments: Wellbore schematic, P&A photos, operations summary. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Jesse Mohrbacher Title: President, Fairweather E & P Services, Inc. Phone: (907)258-3446 Date: '7-'sr-oi INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for I njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. (tem 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 · · t t t Þ · All depths BGL · GL_ · I · · · · · · · · I · · · · · · · · · · · · · · · · · · · · · · · · Casing Strings capped w/18" diameter X 1/4" steel plate @ 4' BGL 7" casing @ 505' cmtd to surface 1000' 4.5" casing @ 2002' cmtd to 1000' ----+ Houston # 3 . ..;.$ TD @ 2030' Fairweather E & P Services. Inc. GRllnc. C/O AOGCC Houston # 3 Well Schematic Permit # 197-243 API # 50-009-20011-00 Final Abandonment Status Solid steel rod rotary drive string 15 PPG +1- Type J cement from 1856' to surface Stage collar @ 760' cmtd to surface Sqeezed Perforations @ 1338'-1342' 1356' -1362' 1507' -1512' 1820' -1826 1848'-1856 lH tum rod driven Kudu pump Packer @ 1900' Cement [] Rev. 01 IN 09/09/04 I Formation fluidlwater Drawing Not to Scale · · þ · · þ · · · t · · · · · · · · · · · · · · · · · · · · · · It · · · · · · · · · · Houston No.3 Plug and Abandonment Daily Operations Summary Monda~August23,2004 Commenced nippling down tree at Houston #3 well. Removed outside blowdown line, chart recorder, numerous 5 gal. oil containers. Cleaned up around wellhead. Rigged up straps on well- head building roof. Picked building using extended boom forklift. Had to hoist building 9' to clear sucker rod extending above surface pump mechanism. Walked building back to staging area, shut down for night. Saturday, August, 28, 2004: 10:02 am - Commenced pumping cement rinse water remaining from #1 annulus job and #2 cement job. Pumped 75 bbls @ 600Psi. Pressure remained steady. 10:33 am - Finished pumping. 75 bbls in 31 min. Commenced mixing cement - 148 sax 1 :42 pm - Commenced pumping cement @ 600 psi. Pressure dropped to 350· psi and then rose to 550 psi when cement hit perfs. 1 :59 pm - Completed pumping. 32-1/2 bbls in 17 min. 2 BPM. 550 psi final shut in pressure. RD R&K Industrial. Sent vac truck ahead to offload cement rinse water at AWWU King Street (Anchorage) dump station. Will meet with Jesse Mohrbacher to gain access to discharge facility. 9:30 pm: R&K complete loading equipment on float and departed for Kenai. Monday, August 30, 2004: Excavated well cellar and removed 8'H x 10'D cylindrical well cellar. Cutoff well casing 4' below grade and welded 18" diameter 1/4" thick marker plate on well casing. Backfilled excavation and received site closure approval from John Spaulding. Also removed 2 cubic yards of diesel contaminated soil and placed same in 4'x4'x4' mud box for transportation to Anchorage Soil Recycling. - , · · · · Houston #3 Photos .. · · · · · · I · · · · · · · · Photo 1: Houston #3 at start of job. · · · · · · · · · · · · · · · · · · · Photo 2: Diesel contaminated gravel prior to removal for disposal. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · .. Photo 3: Casing stub on Houston #3 after cutoffwith cement to surface. Photo 4: Houston #3 final site grade. · It .. It · · · · · · · · · · · · · · · · · · · · · .. · · · · · · · · · · · · · · · · · - Houston. #4 Photos Photo 1: Houston #4 at start of job. Photo 2: Cementing operations on Houston #4. ., I · · · · It · · · · · · · " · · · · · · · · · · · · · · · · · · · · · · · · · · · · Photo 3: Houston #4well cutoffwith cement to surface. Photo 4: Cap welded on well prior to backfill. - I · · · · · I · · · · · · · · · · · · · · Photo 5: Houston No.4, final site grade. · · · · · · · · · · · · · · · · · · · · · · · · · · · 1a. Well Status: · · · · 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 . 4a. Location of Well (Governmental Section): Surface: 2500' FSL, 100' FEL, Sec 10, T18N, R2W, S Meridian · Top of Productive Horizon: · Same Total Depth: · · 4b. Location of Well (State Base Plane Coordinates): Surface: x- y- I TPI: x- y- · Total Depth: x- y- 18. Directional Survey: Yes U No STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilD GasU Plugged 0 Abandoned 0 Suspended 0 WAG 0 1b. Well Class: 20AAC25.105 20AAC25.110 Development 0 Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 I 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 27-Aug-2004 197-244 6. Date Spudded: 13. API Number: March 31,1998 50-009-20012-00 7. Date TD Reached: 14. Well Name and Number: March 31,1998 Houston No.4 8. KB Elevation (ft): 15. Field/Pool(s): Ground Level 9. Plug Back Depth(MD+TVD): 478' 10. Total Depth (MD + TVD): 16. Property Designation: 478 11. Depth Where SSSV Set: 17. Land Use Permit: N/A 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NIA feet MSL N/A GINJD WINJD WDSPLD 2. Operator Name: I Growth Resources Intemational/AOGCC 3. Address: Zone- Zone- Zone- w None WT. PER GRADE. FT. 36 G-75 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD Surface 78 Surface 78 10-1/4" None, driven AMOUNT PULLED Cut csg 4' below grd PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): N/A Oil-Bbl: Gas-MCF: Water-Bbl: .... Oil-Bbl: Gas-MCF: Water-Bbl: .... 23. Perforations open to Production (MD + TVD of Top and Bottom nterval, Size and Number; if none, state "none"): 6. ate First Production: IA ate of Test: Hours Tested: Production for Test Period Calculated 24-Hour Rate Casing Press: 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) SIZE NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Surface to 105' 58 sax Type I Choke Size: I Gas-Oil Ratio: Oil Gravity - API (corr): CORE DATA ief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). ubmit core chips; if none, state "none". None. Form 10-407 R"!vi"".rl1?/?r'~ rraA ITI'" IIIr-n r"" I nr-\ /-- - · · 28. · · None available · · · · · · · · · · · · 130. · .31. · Printed Name: Jesse Mohrbacher · Signature: P-~ · · · · · · · · · · · · · · · · · · · · · · · NAME GEOLOGIC. MARKERS MD TVD 29. FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". List of Attachments: Well bore schematic, P&A photos, operations summary. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Jesse Mohrbacher Title: President, Fairweather E & P Services, Inc. Phone: (907) 258-3446 Date: /1 "Sc-p-of INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 1 0-407 well completion report and 1 0-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Altemating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given In other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none". Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston No.4 Plug and Abandonment Daily Operations Summary VVednesda~August25,2004 Access to Houston #4 was difficult in that Bob Teeling's sawmill was in front of the well. Able to maneuver R&K cementing equipment into position. Arranged to use Teeling's loader and excavator on well operations. RU on Houston #4 and ran 10 joints of 1" pipe. Tagged bottom at 105'. 6:30 pm: R&K Industrial on site with cementer and vac truck. .Circulated water, commenced mixing cement. Mixed 33 sax (estimate called for 26 sax). 8:30 pm: Commenced pumping cement. After 4 bbl, plugged off. Broke off cementing head, cleaned out and continued cementing. Did not see cement returns-returns water began to cloud up slightly with cement. Shutdown for night. Cleaned up cementer, left R&K Industrial equipment on site. Thursday, August, 26, 2004: Return to Houston #4 well - tagged TOC @ 40'. Ran 3 jts of 1" pipe, RU R&K and cemented back to surface with 25 sax 15 ppg cement. RD R&K and moved back to Houston #1 staging area. John Spaulding arrived at #4 well just as R&K was rigging down. Friday, August 27,2004: Bob Teeling excavated around well casing down to 6' with his backhoe loader. Cut off casing and welded on ID plate. John Spaulding inspected final well status on-site. · · · · · It · · All depths BGL · I I · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · GL --- 8" casing capped wI 18" diameter X 1/4" steel plate @ 4' BGL 8" Casing Driven @ 78' Fill level @ 105' (as of June 9, 20(4) Open Hole Houston It 4 Fairweather E & P Services, Inc. ------ TD @ 478' GRllnc. C/O AOGCC Houston '# 4 Well Schematic Permit '# 197-244 API '# 50-009-20012-00 Final Abandonment Status 15 PPG +1- Type I cement In 1:1 5/13" casing 1" Pipe form surface to 105' Cement Fill Rev, 01 IN 09/09/04 Drawing Not to Scale · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ~ Houston #4 Photos Photo 1: Houston #4 at start of job. Photo 2: Cementing operations on Houston #4. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · .a. Photo 3: Houston #4well cutoff with cement to surface. Photo 4: Cap welded on wen prior to backfill. · · · · · · · · · · · · · · · · · · · · · Photo 5: Houston No.4, final site grade. · · · · · · · · · · · · · · · · · · · · · · · · · · · · 1a. Well Status: · GINJD WINJD WDSPLD · 2. Operator Name: I Growth Resources InternationallAOGCC · 3. Address: I · 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 4a. Location of Well (Govemmental Section): · Surface: 3460' FSL, 730 FWL, See 9, T18N, R 3W, S Meridian · Top of Productive Horizon: . Same Total Depth: · . 4b. Location of Well (State Base ~'ane Coordinates): Surface: x- y- · TP: x- y- · Total Depth: x- y- 18. Directional Survey: Yes U No · · 21. Logs Run: None STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilO GasO Plugged 0 Abandoned0 SuspendedÐ WAGD 1b. Well Class: 20AAC25.105 20AAC25.110 Development 0 Exploratory 0 No. of Completions Other Service 0 Stratigraphic Test 0 5. Date Comp., Susp., or 12. Permit to Drill Number: Aband.: 26-Aug-2004 ' 200-042 6. Date Spudded: 13. API Number: June 22, 2000 50-009-20018-00 7. Date TD Reached: 14. Well Name and Number: June 22, 2000 Houston No. 22 8. KB Elevation (ft): 15. Fìeld/Pool(s): Ground Level 9. Plug Back Depth(MD+TVD): 513' 10. Total Depth (MD + TVD): 16. Property Designation: 513 11. Depth Where SSSV Set: 17. Land Use Permit: N/A 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NJA feet MSL NIA Zone- Zone- Zone- w WT. PER FT. 55.5 24 GRADE C-75 J-55 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD TOP BOTTOM TOP BOTTOM HOLE SIZE Surface 76 Surface 76 Surface 513 Surface 513 3. Perforations open to Production (MD + TVD of Top and Bottom nterval, Size and Number; if none, state "none"): one. PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): N/A Oil-Bbl: Gas-MCF: Water-Bbl: -+ Oil-Bbl: Gas-MCF: Water-Bbl: .... Hours Tested: Production for Test Period Calculated 24-Hour Rate CEMENTING RECORD AMOUNT PULLED Casing Press: 12-1/4" 10" None, driven Not to surface Csg cut 4' below grcf 24. TUBING RECORD DEPTH SET (MD) PACKER SET (MD) SIZE NIA 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED Surface to approx 20' 8 sax Type I in 8-5/8"x10" annulus Surface to 265' 68 sax Type I in 8-5/8" casing Choke Size: I Gas-Oil Ratio: Oil Gravity - API (corr): 7. CORE DATA rief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). ubmit core chips; if none, state "none", None. ~ Form 10-407 Revised 12/2003 CONTINUED ON REVERSE · · 28. · NAME · None available · · · · · · · · · · · · .30. -31. · · Printed Name: Jesse Mohrbacher · · · · · · · · · · · · · · · · · · · · · · GEOLOGIC MARKERS MD TVD 29. FORMATION TESTS Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". List of Attachments: Wellbore schematic, P&A photos, operations summary, I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Jesse Mohrbacher Title: President, Fairweather E & P Services, Inc. Signature: ~/Ø~ Phone: (907) 258-3446 Date: /7/ry ~Df INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Altemating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given In other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, 'Gas Injection, Shut-in, or Other (explain). Item 27: If no cores taken, indicate "none", Item 29: List all test information. If none, state "None". Form 10-407 Revised 12/2003 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston No. 22 . Plug and Abandonment Daily Operations Summary Tuesday, August 24, 2004 7:00 pm - Nunleys and Sampert to Houston #22 with 77 sax cement, l' pipe, %" pipe. Checked depth of obstruction in well. Found at 270 ft rather than 220 ft. Ran 22 jts of l' pipe in hole, prepared for cementing unit tomorrow. Shut down at 10 pm. Wednesday, August, 25, 2004: RU on Houston #22 to run additional 3 jts of 1" pipe - total of 25 jts. Tagged bottom at depth of 265'. RU R&K Industrial, mixed 76 sax cement. 12:55 pm: Commenced pumping 15 ppg cement. Cement returns at 1:25 pm. Removed cement header, stabbed one length of %" pipe in 8-5/8 x 10" annulus. Could get no deeper. Pumped through %" pipe until cement returns to surface, approximately 8 sax. RD for move to Houston #4. Monday, August 30, 2004: Cuttoff well casings at 4' below ground level and welded 18" diameter ~n thick marker plate on same. Took photos of cutoff well and welded plate on casings as John Spaulding was unavailable for final site closure inspection. Backfilled excavation to level with grade and smoothed location. ~ . It · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · All depths BGL GL -- Casing Strings capped wi is'' diameter X 1/4" steel plate @ 4' BGL ----..... 10" Casing Driven @ 76' Unknown Obstruction @ 265' - 85/8" Casing @ 513' , Houston # 22 Fairweather E & P Services. Inc. GRllnc. C/O AOGCC Houston # 22 Well Schematic Permit # 200-242 ~ API # 50-009-20018-00 Final Abandonment Status 3/4" pipe from surface to 10· 15 PPG +1- cement in 10" X 8 5/8" annulus @surface 15 PPG +1- Type I cement in 8 5/8" casing and i·' pipe Toe in 10" X 8 5/8" annulus unknown 1" pipe from surface to 265' No Perforations in Well Water Cement ",'·';~·4 Rev. 01 IN 09/09/04 Drawing Not to Scale James Nunlev 9/1012004 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Houston #22 Photos Photo 1: Houston #22 at start of job. Photo 2: Houston #22 with cement in 8-5/8" casing and 10-3/4"x8-5/8" annulus. · · · · · · · · ¡I · · · · · · · · · · · · · · · · e · · · · · · · · · · · · · · · · · · Photo 3: Photo 4: Cap welded on well prior to backfill. · · · · · · · · · · · · · · · · · · · · · · · · · 4Þ · · · · · · · · · · · · · · · · · .. Photo 5: Houston #22, final site grade.