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Home My WebLink AboutERIO 001• • INDEX Enhanced Recovery Injection Order #1 Prudhoe Bay Field-Schrader Bluff Formation Well V-lOSi l.August 22, 2003 BPXA Application for Orion Water flood Pilot Project (Exhibits F-K held confidential) 2.September 4, 2003 Notice of Hearing, Affidavit of publication, a-mail Distribution list, bulk mailing 3. October 7, 2003 E-mail from staff removing hearing from calendar Enhanced Recovery Injection Order #1 • STATE OF ALASKA L7 ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP } Enhanced Recovery Injection Order EXPLORATION (ALASKA) INC. ) No. 1 for an order authorizing a pilot ) waterflood project designed to test ) Prudhoe Bay Field the potential for enhanced oil ) Schrader Bluff Formation recovery in the Schrader Bluff ) Well V-lOSi Formation, Prudhoe Bay Field, ) North Slope, Alaska ) October 16, 2003 IT APPEARING THAT: 1. By letter and application date August 22, 2003, BP Exploration (Alaska) Inc. ("BPXA") in its capacity as Unit Operator of the Prudhoe Bay Unit ("PBU") requested an order from the Alaska Oil d Gas Conservation Commission ("Commission") authorizing the injection of Ovate for enhanced oil recovery into Well V-lOSi. 2. Notice of a public hearing was published in the Anchorage Daily News on September 4, 2003. 3. No comments or request for public hearing were received. 4. The Commission determined it has sufficient information as a basis for ruling, and a public hearing was not needed. FINDINGS: 1. Operator: BPXA is operator of the Orion Undefined Oil Pool in the Prudhoe Bay Field, North Slope, Alaska. 2. Project Location The surface location of the injection well is located in Township 11N, Range 11E UM with the surface location in Section 11, and the bottomhole location and proposed water injection interval in Section 2. 3. Operators/Surface Owners Notification: BPXA provided operators and surface owners within one-quarter mile of the proposed area with a copy of the application for injection. The only affected operator is BPXA. The State of Alaska, Department of Natural Resources is the only affected surface owner. Enhanced Recovery Injectioli~rder No. 1 • Page 2 October 16, 2003 4. Description of Operation: The Orion waterflood pilot project ("OWPP") includes a single injector, Well V-lOSi, and Wells V-201 and V-202 (which is a trilateral well), producing from the Upper Cretaceous Schrader Bluff Formation. Well V-lOSi is currently injecting into the Lower Cretaceous Kuparuk formation. The Schrader Bluff formation has been perforated in this well and is isolated behind pipe. By pulling a gas lift "dummy" and replacing it with an injection valve, commingled injection of the Kuparuk and Schrader Bluff may occur. The purpose of the injection test is to: o determine the infectivity into the Schrader Bluff formation; o determine the operability of commingled injection into two pools; o confirm that geological barriers will contain the injection fluid when injected at injection pressures above fracture gradient. Data gathering will include: o injection profile and temperature logs in well V-lOSi including monthly injection logs to determine volume flow split between the Kuparuk and Schrader Bluff formations; o infectivity and step rate tests in well V-lOSi; o static pressures in Wells V-lOSi, V-201, and V-202; o production and injection rates/pressure; o pressure buildup in well V-202. 5. Geologic Information: a. Injection will occur within V-lOSi within the Schrader Bluff Formation. A pool has not been defined for the Schrader Bluff formation within the pilot waterflood area. An application to establish the Orion Oil Pool is planned for submittal by December 31, 2003. b. Schrader Bluff Formation O-Sands are divided into seven separate reservoir intervals that are named, from deepest to shallowest, OBf, OBe, Obd, OBc, OBb, OBa, and OA. Each of these intervals coarsens upward from non- reservoir, laminated muddy siltstone at the base to reservoir-quality sandstone at the top. c. The injection interval is 4,347' true vertical depth sub-sea ("tvdss") to 4,605' tvdss, and includes the OA, Oba, OBb, Obc, and OBd Sand intervals. The Obe and Obf units are not perforated and will not be receiving injection water. d. The OA interval is abruptly truncated and capped by 62' of silt and mudstone that will serve as upper confinement to the injection fluids. e. The V-lOSi will provide downdip pressure support within a fault block common to wells V-201 and V-202. Enhanced Recovery InjectiorTJrder No. 1 • Page 3 October 16, 2003 6. Well Lois: The logs of V-lOSi are on file with the Commission. 7. Mechanical Integrity and Well Desi n~jection Wells: Well V-lOSi was permitted, drilled and completed in accordance with Commission state-wide regulations. A cement bond log was run on well V-lOSi that demonstrates good cement integrity between the Kuparuk and Schrader Bluff formations and above the Schrader Bluff formation. 8. Type of Fluid /Source/water anal: Fluids requested for injection include: o produced water from Prudhoe Bay Unit; o tracer survey fluid to monitor reservoir performance; o non-hazardous filtered water collected from well house cellars, well pads and PBU reserve pits. The initial target rate will be 3,000 barrels water per day ("BWPD"). BP requested a maximum injection rate of 30,000 BWPD. The OWPP produces from the same formation as the Polaris Oil Pool ("POP"), a Schrader Bluff Formation pool directly east of the pilot area, and the produced water planned for injection is processed at the same facility (Gathering Center 2). Compatibility of injected fluids with the formation has not been a problem in the POP, and hence, no problems are anticipated at Orion. Water samples will be obtained from well V-201 during the pilot project. 9. Injection Pressures, Fracture Propa ation As part of this pilot project BPXA plans to acquire information at pressures above fracture gradient. Confirmation of vertical confinement is an objective of the pilot project. BPXA requested a maximum surface injection pressure of 2800 pounds per square inch ("psi") with an average surface operating pressure of 2200 psi. The injection rate will be controlled by flow restriction at the downhole injection mandrel, and hence pressure will be restricted adjacent to the perforations in the Schrader Bluff formation. Enhanced Recovery InjectionT3rder No. 1 • Page 4 October 16, 2003 BPXA had previously supplied fracture propagation information in the application for Area Injection Order for the POP. Step rate tests indicate fractures initiate at about 1000 psi surface injection pressure while injecting at 1 %2 to 2 barrels per minute. A stress test performed in well 5-213 indicates a fracture gradient of 0.66 psi/ft for the basal mudstone of the OBa interval. This is a typical silty mudstone within the Polaris Oil Pool. Minimum stress values for the sandstones show an average fracture gradient of 0.61 psi/ft, indicating a stress contrast of approximately 255 psi between reservoir sandstone and confining mudstone. This agrees with the stress contrast of 300 psi estimated using a dipole sonic log from well W-200 (or a fracture gradient in the mudstones of approximately 0.67. On the basis of this test information, the Commission ordered (Area Injection Order 25, dated 2/4/03) that POP normal injection pressure be limited to 0.67 psi/ft to ensure injection stays within the intended injection interval. Subsequently, BPXA performed step rate water injection tests in two Polaris wells, W- 212i and 5-215i. The Schrader Bluff Formation reservoir in these wells should be comparable to that of the OWPP. Injection rates of up to 10000 BWPD and injection gradients of 0.75-0.8 psi/ft were achieved. Temperature surveys showed the water to be confined to the intended intervals, with no fluid movement behind pipe. This pressure exceeded that obtained with the stress test described above. The step rate information suggests that a less conservative injection pressure limitation may be appropriate. 10. Freshwater exem tion: Aquifer Exemption Order #1, dated July 11, 1986 exempts all portions of aquifers beneath the Western Operating Area of the Prudhoe Bay Unit, including the area designated for the Orion waterflood pilot project. 11. Expected Increase in Hydrocarbon Recovery BPXA expects that the incremental increases due to waterflooding would be 10-20% OOIP. Further information on recovery benefits will be provided with the application for pool rules. 12. Mechanical Condition of Adjacent Wells: There are no wells within % mile of injection for the test. CONCLUSIONS: 1. The application requirements of 20 AAC 25.402 have been met. 2. Water injection is anticipated to significantly increase recovery. 3. An injection test will provide information needed for development planning. Enhanced Recovery InjectiorlTlyder No. 1 • Page 5 October 16, 2003 4. 20 AAC 25.450 allows the Commission to approve pilot projects for enhanced recovery with less stringent requirements for well construction, operation, monitoring, and reporting, if the project will not result in an increased risk of fluid movement into freshwater sources. 5. All aquifers in the proposed area are exempt. 6. Dual injection within well V-lOSi is appropriate so long as mechanical isolation of the pools within the wellbore is assured and water injection is allocated between the pools. 7. Sufficient information has been provided to authorize V-lOSi to inject water into the Schrader Bluff Formation for the purposes of pressure maintenance and enhanced oil recovery and data gathering. 8. Injection pressures will be above the fracture gradient of the formation. As part of the test, increasing injection pressure in staged periods, and injection logging will be utilized to verify the injection does not propagate fractures through the confining interval. 9. Reservoir and well surveillance, coupled with regularly scheduled mechanical integrity tests will demonstrate appropriate performance of the enhanced oil recovery project or disclose possible abnormalities. 10. The Commission shall be apprised of the progress of the pilot test. NOW, THEREFORE, IT IS ORDERED that: The underground injection of fluids for enhanced oil recovery is authorized, subject to the following rules and the statewide requirements under 20 AAC 25 (to the extent not superseded by these rules). Rule 1 Authorized Infection Strata for Enhanced Recovery Authorized fluids may be injected for purposes of pressure maintenance and enhanced oil recovery into strata that are common to, and correlate with the O-Sand interval between 4,347' tvdss to 4,605' tvdss, in Prudhoe Bay Unit well V-1 OSi. Rule 2 Fluid Infection Well The underground injection of fluids for enhanced oil recovery is authorized in Well V- lOSi in Section 2, Township 11N, R11E. Enhanced Recovery Injectior7Tirder No. 1 ~ Page 6 October 16, 2003 Rule 3 Authorized Fluids for Enhanced Recovery Fluids authorized for injection include: a. produced water from Prudhoe Bay Unit production facilities for the purposes of pressure maintenance and enhanced recovery; b. tracer survey fluid to monitor reservoir performance; c. non-hazardous filtered water collected from well house cellars and well pads. Rule 4 Reporting of Test Information Validation is required that water injection is confined to the intended injection interval. Information gathered from the test, including daily injection pressures and rates, and results of injection surveys, must be provided monthly to the Commission. Rule 5 Commingled Water Infection a. Well V-lOSi may proceed with commingled water injection into both the Kuparuk Formation (Borealis Oil Pool) and the Schrader Bluff Formation. b. Monthly injection log surveys must be conducted during the first three months, and quarterly thereafter, for determining the allocation of water injection. These results must be supplied to the Commission. Rule 6 Notification of Improper Class II Infection Injection of fluids other than those listed in Rule 2 without prior authorization is considered improper Class II injection. Upon discovery of such an event, the operator must immediately notify the Commission, provide details of the operation, and propose actions to prevent recurrence. Additionally, notification requirements of any other State or Federal agency remain the operator's responsibility. Rule 7 Other conditions a. It is a condition of this authorization that the operator complies with all applicable Commission regulations. b. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. Rule 8 Administrative Actions Unless notice and public hearing is otherwise required, the Commission may administratively waive the requirements of any rule stated above or administratively amend any rule as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. Enhanced Recovery Injection~rder No. I • Page 7 October 16, 2003 Rule 9 Expiration Date This Order shall expire July 1, 2004. DONE at Anchorage, Alaska and dated October 16, 2003. c --__ a air ~~ Alaska Oi d Gas Conserva on Commission ~ ~~~ ~~ , 1 ~ ~ , ,~_,~ Daniel T. Seamount, Jr., Commissioner ~~~~;!~ ~ '~':~~~ Alaska Oil and Gas Conservation Commission ,~ ~„~~ ;,l •~;: ~ ~ . * ~ n ~~ `q.~',~~ ~~~ Randy Rue rich, Commiss>oner Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it Month file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the final order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by non-action of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10`h day after the application for rehearing was filed). ERIO 1 • Subject: ERIO 1 Date: Thu, 16 Oct 2003 13:34:39 -0800 From: Jody Colombie <jody colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission BCC: Robert E Mintz <robert mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly@conocophillips.com>, "mark.p.worcester" <mark.p.worcester@conocophillips.com>, "jerry.c.dethlefs" <ferry.c.dethlefs@conocophillips.com>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, burgin_d <burgin_d@niediak.com>, "charles.o'donnell" <charles.o'donnell@veco.com>, "Skillern, Randy L" <Ski11eRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <Mikel.Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <P1attJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <Collins_mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barbara.f.fullmer" <barbara.f.fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>, doug_schultze <doug_schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobil.com>, yesnol <yesnol@gci.net>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>, "fred.steece" <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>, "james.m.ruud" <fames.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, fah <jah@dnr.state.ak.us>, Kurt E Olson <kurt Olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, "Emeka.C.Ezeaku" <Emeka.C.Ezeaku@spdc.shell.com>, mark_hanley <mark_hanley@anadarko.com>, loren_leman <loren_leman@gov.state.ak.us>, Harry R Bader <harry bader@dnr.state.ak.us>, 1 of 2 10/16/2003 1:40 PM ERIO 1 • julie_houle <julie_houle@dnr.state.ak.us>, John W Katz<jwkatz@sso.org>, Suzan J Hill <suzan hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, jimwhite <jimwhite@satx.rr.com>, Stephanie_Ross <Stephanie_Ross@thomson.com>, " john.s.haworth" <john.s.haworth@exxonmobil.com>, marty <marty@usalaska.biz> Enhanced recovery Injection Order 1. _ Name: ERIOOOl.doc L]ERIOOOI.doc Type: WINWORD File (application/msword) 'Encoding: base64 Jody Colombie <jody colombie(a,admin.state.ak.us> 2 of 2 10/16/2003 1:40 PM ERIO 1 • Subject: ERIO 1 Date: Thu, 16 Oct 2003 13:32:11 -0800 From: Jody Colombie <jody Colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Cynthia B Mciver <bren mciver@admin.state.ak.us> Please add to web site. Name: ERIOOOI.doc ~ERI0001.doc Type: WINWORD File (application/msword) ', Encoding: base64 __ Jody Colombie <jody colombie(a,admin.state.ak.us> 1 of 1 10/16/2003 1:40 PM ~l /v/~"/o.3 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF BP EXPLORATION (ALASKA) INC. for an order authorizing a pilot waterflood project designed to test the potential for enhanced oil recovery in the Schrader Bluff Formation, Prudhoe Bay Field, North Slope, Alaska Enhanced Recovery Injection Order No.l Prudhoe Bay Field Schrader Bluff Formation Well V-lOSi October 16, 2003 IT APPEARING THAT: 1. By letter and application dated August 22, 2003, BP Exploration (Alaska) Inc. ("BPXA") in its capacity as Unit Operator of the Prudhoe Bay Unit ("PBU") requested an order from the Alaska Oil and Gas Conservation Commission ("Commission") authorizing the injection of water for enhanced oil recovery into Well V-lOSi. 2. Notice of a public hearing was published in the Anchorage Daily News on September 4, 2003. 3. No comments or request for public hearing were received. 4. The Commission determined it has sufficient information as a basis for ruling, and a public hearing was not needed. FINDINGS: 1. Operator: BPXA is operator of the Orion Undefined Oil Pool in the Prudhoe Bay Field, North Slope, Alaska. 2. Proiect Location The surface location of the injection well is located in Township 11N, Range 11E UM with the surface location in Section 11, and the bottomhole location and proposed water injection interval in Section 2. 3. Operators/Surface Owners Notification: BPXA provided operators and surface owners within one-quarter mile of the proposed area with a copy of the application for injection. The only affected operator is BPXA. The State of Alaska, Department of Natural Resources is the only affected surface owner. SD Dept of Env & Natural Resources •Citgo Petroleum Corporation ~ ary Jones Oil and Gas Program PO Box 3758 XTO Energy, Inc. 2050 West Main, Ste 1 Tulsa, OK 74136 Cartography Rapid City, SD 57702 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb W. Allen Huckabay Kelly Valadez IHS Energy Group ConocoPhillips Petroleum Company Tesoro Refining and Marketing Co. GEPS Offshore West Africa Exploration Supply & Distribution 5333 Westheimer, Ste 100 323 Knipp Forest Street 300 Concord Plaza Drive Houston, TX 77056 Houston, TX 77079-1175 San Antonio, TX 78216 Robert Gravely George Vaught, Jr. Jerry Hodgden 7681 South Kit Carson Drive PO Box 13557 Hodgden Oil Company Littleton, CO 80122 Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Richard Neahring John Levorsen Kay Munger NRG Associates 200 North 3rd Street, #1202 Munger Oil Information Service, Inc President Boise, ID 83702 PO Box 45738 PO Box 1655 Los Angeles, CA 90045-0738 Colorado Springs, CO 80901 Samuel Van Vactor Michael Parks Trustees for Alaska Economic Insight Inc. Marple's Business Newsletter 1026 West 4th Ave., Ste 201 3004 SW First Ave. 117 West Mercer St, Ste 200 Anchorage, AK 99501-1980 Portland, OR 97201 Seattle, WA 98119-3960 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 3940 Arctic Blvd., Ste 300 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Jill Schneider Gordon Severson 4730 Business Park Blvd., #44 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99503 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 David Cusato Jack Hakkila Kevin Tabler 600 West 76th Ave., #508 PO Box 190083 Unocal Anchorage, AK 99518 Anchorage, AK 99519 PO Box 196247 Anchorage, AK 99519-6247 Kenai Peninsula Borough Penny Vadla James Gibbs Economic Development Distr Box 467 PO Box 1597 14896 Kenai Spur Hwy #103A Ninilchik, AK 99639 Soldotna, AK 99669 Kenai, AK 99611-7000 Kenai National Wildlife Refuge Richard Wagner Cliff Burglin Refuge Manager PO Box 60868 PO Box 131 PO Box 2139 Fairbanks, AK 99706 Fairbanks, AK 99707 Soldotna, AK 99669-2139 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ~3 Re: Cancel hearing of October 14, Orion single well inject~est r Subject: Re: Cancel hearing of October 14, Orion single well injection test Date: Tue, 07 Oct 2003 11:39:57 -0800 From: "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> Organization: doa-aogcc To: Jane Williamson <Jane_Williamson@admin.state.ak.us> CC: Sarah H Palin <sarah~alin@admin.state.ak.us>, Randolph A Ruedrich <randy ruedrich@admin.state.ak.us>, Robert P Crandall <bob_crandall@admin.state.ak.us>, Jody J Colombie <jody colombie@admin.state.ak.us>, Robert E Mintz <robert mintz@law.state.ak.us> agreed by me Jane Williamson wrote: > C's, > A hearing is scheduled for October 14 for a single well injection order > in Well V-105i. Bob and I recommend that the hearing be vacated. We > have sufficient information for the order. > t gave Bob a draft of the injection order for this yesterday. After he > reviews, we'll send through Mintz and on to you. We will have the order > to you next week. > As you probably have seen in your in-box, the application for pool rules > and full area injection order was received yesterday. The single well > injection order is separate from these orders. The single well > injection test will allow for earlier pressure maintenance, and will > provide earlier information needed for injection planning (infectivity, > commingled Kuparuk and Schrader injection). > Jane 1 of 1 10/7/2003 12:37 PM STATE OF ALASKA ~ NOTICE TO PUBLISHER ~ ADVERTISING ORDER NO. ADVERTISING ORDER INV UST BE IN TRIPLIC( TE SHOWING ADVERTI) ING ORDER ERTIFIED AFFIDAVIT OF PUBLICATION PART2 OF THIS FORM WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE /~ 0.02414006 M SEE 80TTOM FOR INVOICE ADDRESS F R AOGCC 333 W 7th Ave, Ste 100 AGENCY CONTACT Jod Colombie DATE OF A.O. Se tember 3 2003 ° M Anchorage, AK 99SO1 PHONE PcN DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News P O Box 149001 Anchorage, AK 99514 September 4, 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIALIN5TRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal ^ Display ^ Classified ^Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE T(} AOGCC, 333 W. 7th Ave., Suite 100 Anchora e AK 99501 PAGE 1 OF 2 PAGES TOTAL OF ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID ~ 04 02140100 73540 2 3 4 REQUISITIONE BY: DIV N PPR VAL: 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM w ~ Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Orion Single Well Water Injection Test -Injection Order (Schrader Bluff formation, Orion undefined pool, Prudhoe Bay Field) BP Exploration (Alaska), Inc. by application dated August 22, 2003, has requested authorization to inject water for enhanced recovery into a single well within the Schrader Bluff formation (Orion) within the Prudhoe Bay Field, on the North Slope of Alaska. The well to be used for injection, V-lOSi, is located in Section 11, Township 11 N, Range 11 E. The Commission has tentatively set a public hearing on this application for October 14, 2003 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on September 22, 2003. If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please ca11793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on October 7, 2003 except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on October 14, 2003. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1221 before October 7, 2003. ~~~ arah Palm Chair, Alaska Oil and Gas Conservation Commission Published Date: September 4, 2003 ADN AO # 02414006 Nidl_'I M.1` chorage Daily News Affidavit of Publication ]001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD # DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 934040 09/04/2003 AO-02414 STOF0330 $146.64 $146.64 $0.00 $0.00 $0.00 $0.00 $0.00 $146.64 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspapper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn i MY COMMIS N EXPIRES: ., . ~ llilffr' ~ `~~~ di'~ ~. r qtr j. s... w w~ ~91~t.OG ~~~ --- = /II!))))111 this date: STATE OF ALASKA i Alaska Oil and Gas. Conservation Commission Re: Orion Single Well WdTer Iniectiah Test - IniecTion Order (Schrader Bluff formation, Orion undefined pool, Prudhoe Bay Field) j BP Exploration (Alaska), Inc. by application dated August 22, 2003, has requested authorization to infect water for enhanced recovery into a single j well within The Schrader Bluff formation (Orion) within The Prudhoe Bav Field, do the North Slope of Alaska. The well To be used for infection, V-105i, 1 is located in Section }1, Township dt N, Range 19 E. ' The' Commission has tentatively set a publit hearing on this application-for October 14,2003 qt i 9:00 am aT The Alaska Oil and Gas Conservation Commission at 333 WesT 7th Avenue, Suite 100, An- .chorage, Alaska 99501. A person may requesTThaT the tentatively scheduled hearingbe held by filing i a written request with the Commission no later. i than 4:30 pm on September 22, 2003. If a request for a hearing is not Timely filed, the j Commission. will consider the issuance of an order without a hearing. To learn if The Commission will ~~ hold the public hearing, please. call 793-1221. In addition, a person may submit written com- ~ menTS regarding this application To the Alaska Oil ~ and Gas Conservation Commission aT 333 West 7Th Avenue, Suite 100, Anchorage, Alaska 99501. Writ- i Ten comments must be received no later than 4:3p pm on October 7, 2003 except that if the Commis- sion decides To hold a public hearing, written comments must be received no IaTer than 9:00 am on Dctober 14, 2003. If you are a person with a disability who may need a special modification in order to comment or ToaTTend the public hearing, please contact Jody Colombie aT 793-1221 before October 7, 2003. Sarah Palin, Chair • Alaska Oil and Gas Conservation Commission. ADN AO # 02414006 Publish: September 4, 2003 Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska ~ STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING ~ INV UST BE IN TRIPLICATE SHOWING ADVERTISING ORDER ERTIFIED p ORDER AFFIUAVI7 OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED C; PY OF AO-02414006 ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDR£8S ~ AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7th Avenue, Suite 100 ° Anchorage, AK 99SO1 PHONE PC "' 907-793-1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News September 4, 2003 P O Box 149001 Anchora e AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS g , ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersi ned, a nota g ry public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for consecutive days, the last publication appearing on the day of , 2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER Notice of Public Hearing Subject: Notice of Public Hearing Date: Wed, 03 Sep 2003 09:58:17 -0800 From: Jody colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission To: Cynthia B Mciver <bren_mciver@admin.state.ak.us>, Nancy Norton <Nancy Norton@admin.state.ak.us> Please add to web site. Jody Name: 2 Orion AIO.doc ~2 Orion AIO.doc'' Type: WINWORD File (application/msword) 'Encoding: base64 1 of 1 9/3/2003 9:58 AM Notice of Public Hearing • Subject: Notice of Public Hearing Date: Wed, 03 Sep 2003 09:57:46 -0800 From: Jody colombie@admin.state.ak.us Organization: Alaska Oil and Gas Conservation Commission To: Robert E Mintz <robert mintz@law.state.ak.us>, Christine Hansen <c.hansen@iogcc.state.ok.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, Scott & Cammy Taylor <staylor@alaska.net>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjrl@aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill@aoga.org>, shaneg <shaneg@evergreengas.com>, rosew <rosew@evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <Shannon.donnelly@conocophillips.com>, "mark.p.worcester" <mark.p.worcester@conocophillips.com>, "jerry.c.dethlefs" <ferry.c.dethlefs@conocophillips.com>, arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnelson <mjnelson@purvingertz.com>, burgin_d <burgin_d@niediak.com>, "charles.o'donnell" <charles.o'donnell@veco.com>, "Skillern, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH@BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg@BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.com>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <Mikel.Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE@BP.com>, "Platt, Janet D" <P1attJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <Collins_mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barbara.f.fullmer" <barbara.f.fullmer@conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo@chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>, doug_schultze <doug_schultze@xtoenergy.com>, "hank.alford" <hank.alford@exxonmobil.com>, yesno 1 <yesno 1 @gci.net>, " john.w.hanes" <john.w.hanes@exxonmobil.com>, gspfoff <gspfoff@aurorapower.com>, "gregg.nady" <gregg.nady@shell.com>, "fred.steece" <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa@alaska.net>, jroderick <jroderick@gci.net>, eyancey <eyancey@seal-tite.net>, "james.m.ruud" <fames.m.ruud@conocophillips.com>, Brit Lively <mapalaska@ak.net>, fah <jah@dnr.state.ak.us>, Kurt E Olson <kurt_olson@legis.state.ak.us>, buonoje <buonoje@bp.com>, "Emeka.C.Ezeaku" <Emeka.C.Ezeaku@spdc.shell.com>, mark hanley <mark_hanley@anadarko.com>, 1 of 2 9/3/2003 9:58 AM Notice of Public Hearing loren_leman <loren_leman@gov.state.ak.us>, Harry R Bader <harry bader@dnr.state.ak.us>, julie_houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, Suzan J Hill <suzan hill@dec.state.ak.us>, tablerk <tablerk@unocal.com>, brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us> Notice - Orion Single Well Water Injection Test - AIO Name: 2 Orion AIO.doc 2 Orion. AIO.doc' Type: WINWORD File (application/msword) 'Encoding: base64 2 of 2 9/3/2003 9:58 AM Ad Order Subject: Ad Order Date: Wed, 03 Sep 2003 09:47:11 -0800 From: Jody Colombie <jody colombie@admin.state.ak.us> Organization: Alaska Oil and Gas Conservation Commission To: Legal Ads Anchorage Daily News <legalads@adn.com> Please publish the attached 9/4/03 Jody Colombie Name: Ad Order form.doc ~]Ad Order form.doc' Type: WINWORD File (application/msword) ',Encoding: base64 Name: Orion_AIO.doc '' Orion AIO.doc Type: WINWORD File (application/msword) 'Encoding: base64 Jody Colombie <jody colombie cr,admin.state.ak.us> 1 of 1 9/3/2003 9:58 AM SD Dept of Env & Natural Resources ~ Citgo Petroleum Corporation ~ Mary Jones Oil and Gas Program PO Box 3758 XTO Energy, Inc. 2050 West Main, Ste 1 Tulsa, OK 74136 Cartography Rapid City, SD 57702 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 David McCaleb W. Allen Huckabay Kelly Valadez IHS Energy Group ConocoPhillips Petroleum Company Tesoro Refining and Marketing Co. GEPS Offshore West Africa Exploration Supply & Distribution 5333 Westheimer, Ste 100 600 North Dairy Ashford 300 Concord Plaza Drive Houston, TX 77056 Houston, TX 77079-1175 San Antonio, TX 78216 Robert Gravely George Vaught, Jr. Jerry Hodgden 7681 South Kit Carson Drive PO Box 13557 Hodgden Oil Company Littleton, CO 80122 Denver, CO 80201-3557 408 18th Street Golden, CO 80401-2433 Richard Neahring John Levorsen Kay Munger NRG Associates 200 North 3rd Street, #1202 Munger Oil Information Service, Inc President Boise, ID 83702 PO Box 45738 PO Box 1655 Los Angeles, CA 90045-0738 Colorado Springs, CO 80901 Samuel Van Vactor Michael Parks Trustees for Alaska Economic Insight Inc. Marple's Business Newsletter 1026 West 4th Ave., Ste 201 3004 SW First Ave. 117 West Mercer St, Ste 200 Anchorage, AK 99501-1980 Portland, OR 97201 Seattle, WA 98119-3960 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 3940 Arctic Blvd., Ste 300 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Jill Schneider Gordon Severson 4730 Business Park Blvd., #44 US Geological Survey 3201 Westmar Cr. Anchorage, AK 99503 4200 University Dr. Anchorage, AK 99508-4336 Anchorage, AK 99508 David Cusato Jack Hakkila Kevin Tabler 600 West 76th Ave., #508 PO Box 190083 Unocal Anchorage, AK 99518 Anchorage, AK 99519 PO Box 196247 Anchorage, AK 99519-6247 Kenai Peninsula Borough Penny Vadla James Gibbs Economic Development Distr Box 467 PO Box 1597 14896 Kenai Spur Hwy #103A Ninilchik, AK 99639 Soldotna, AK 99669 Kenai, AK 99611-7000 Kenai National Wildlife Refuge Richard Wagner Cliff Burglin Refuge Manager PO Box 60868 PO Box 131 PO Box 2139 Fairbanks, AK 99706 Fairbanks, AK 99707 Soldotna, AK 99669-2139 Bernie Karl ~ North Slope Borough • Williams Thomas K&K Recycling Inc. PO Box 69 Arctic Slope Regional Corporation PO Box 58055 Barrow, AK 99723 Land Department Fairbanks, AK 99711 PO Box 129 Barrow, AK 99723 =w l by August 22, 2003 Commissioners Alaska Oit and Gas Conservation Commission 333 West 7t" Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Orion Waterflood Pilot Project Dear Commissioners: BP Exploration (Alaska) Inc. (BPXA), Operator of the Prudhoe Bay Unit (PBU), hereby makes application pursuant to 20 AAC 25.402 and 25.450 (b) for an Orion waterflood pilot project to inject fluids for the purpose of enhanced recovery operations in that portion of the Schrader Bluff formation, Prudhoe Bay Field, North Slope Alaska known as the Orion Pool (for which application for Pool Rules and an Area Injection Order are contemplated and which will be referred to herein as "Orion"). The pilot project involves injection into the Orion Pool through use of a wellbore designed for commingled injection with the Borealis field. Implementation of the pilot project will assist in design of a waterflood that is expected to preserve reservoir energy and increase ultimate recovery from Orion. The proposed term of the Orion injection pilot project is nine (9) months, or upon AOGCC approval of an Orion Area Injection Order, whichever is later. BPXA requests that the commission maintain Exhibits F, G, H, I, J and K to this letter as confidential pursuant to AS 31.05.035 and 20 AAC 25.537. This material contains engineering, geological and other information, and interpretations thereof, which constitutes trade secrets and have been labeled as "confidential." Orion Proiect Back round There are currently two wells, V-201 and V-202 completed and producing from Orion. The V-201 and V-202 wells are producing from the same geologic fault block, with bottom hole locations approximately 1,000 ft. apart. Well V-201 has produced approximately 160,000 barrels of oil since April 2002 and Well V-202 has produced approximately 75,000 barrels of oil since July 2003. BP Exploration (Alaska) Inc. 900 East Benson Boulevard P. 0. Box 196612 Anchorage, Alaska 99519-6612 (907) 561-5111 r 2 V-201 is a conventional vertical well that was fracture stimulated. V-202 is completed as a horizontal well in the OBd Sand. Plans are to add two (2) more laterals in the OA and OBa Sands to well V-202 by year-end. Well test plots for wells V-201 and V-202 are identified in Exhibit A. Both of these wells are producing under tract operations authorized by the Department of Natural Resources. Schrader Bluff well performance data are being gathered for these two different completions. Well V-105i was drilled to provide injection into the Kuparuk formation as part of the Borealis development, and was completed with straddle packers and an injection mandrel to provide the option of commingled injecting into the Schrader Bluff formation. The operability of commingled injectors is of considerable interest and will have an impact on Orion development plans. Pilot Project Objective The waterflood pilot project objectives are as follows: • Determine the infectivity at Orion; • Determine the operability of injection wells that inject into two pools: Borealis (Kuparuk formation) and Orion (Schrader Bluff formation); and • Confirm that geological barriers will contain the injection fluid when injecting at the anticipated injection pressures for the full project, which may exceed the fracture gradient. Pilot Project Area Orion waterflood pilot project activities will take place using dual injector well V- 105i, and producing wells V-201 and V-202. The surface and bottom hole locations for these wells are within lease ADL 028240 as depicted in Exhibit B. Well V-105i injection will be in perforations from the top of the OA Sand to the base of the clean sand interval in the OBd section. Pilot Project Data Gathering To evaluate the pilot project objectives, the following data will be collected: • Injection profile and temperature logs in well V-105i, • Static pressures in all three wells (V-1051, V-201 and V-202), • Infectivity test in well V-105i, • Step rate test in well V-105i, • Production data from wells V-201 and V-202, and • Pressure buildup data from well V-202 OBd. Pilot Project Report Upon completion of the pilot project, learning's from the pilot will be incorporated into the Area Injection Order application. 2 • 3 Enhanced Recovery Regulatory Requirements While the AOGCC may establish less stringent requirements for a pilot project, BPXA is not requesting such action and is providing the following information in response to each of the 20 AAC 25.402(c) requirements, 1. 20 AAC 25.402 (c)(1) - a plat showing the location of each proposed injection well, abandoned or other unused well, production well, dry hole, and other well within one-quarter mile of each proposed injection well; Exhibit C is a plat showing the location of all such wells -producing wells V-202 and V-201 and the supporting injection well V-1051. 2. 20 AAC 25.402 (c)(2) - a list of all operators and surface owners within aone-quarter mile radius of each proposed injection well; BPXA is the only operator, and the State of Alaska is the only surface owner, within aone-quarter mile radius of the proposed injection well. 3. 20 AAC 25.402 (c)(3) - an affidavit showing that the operators and surface owners within aone-quarter mile radius have been provided a copy of the application for injection; An affidavit is attached as Exhibit D. 4. 20 AAC 25.402 (c)(4) - a full description of the particular operation for which approval is requested; The Orion waterflood pilot project will be conducted from the PBU V-Pad, which was built for Borealis Field development. The V-Pad plot plan showing the well layouts is shown as Exhibit E. The waterflood pilot will use existing facilities. Well V-201 is a jet pumped producer and well V-202 is a gas-lifted producer. Production from both wells flows to the V-Pad manifold where it is commingled with Borealis Pool production. It then flows into a Large Diameter Flowline (LDF) and then combined with other fluids for processing at GC-2. Well V-105i is currently injecting into the Kuparuk formation. Produced water is routed from GC-2 to the V-Pad manifold and then diverted to the injection wells. A flow meter on well V-1051 meters total fluid injected into the well. Well V-105i will be prepared for pilot injection by pulling a plug that currently sits in the injection mandrel, thus allowing fluid to commence flow into the Schrader Bluff formation. Monthly injection logs will be run to determine the volume flow split between the Schrader Bluff and Kuparuk formations. Schrader Bluff injection volumes will be controlled by installation of a sized injection valve in the injection mandrel. 3 4 5. 20 AAC 25.402 (c)(5) - the names, descriptions, and depths of the pools to be affected; A pool has not been established for the Schrader Bluff formation in the proposed waterflood area. Information regarding the Schrader Bluff formation is set forth in paragraph 6, below. An application to establish an Orion Pool and associated Pool Rules is planned for submittal to the commission by December 31, 2003. 6. 20 AAC 25.402 (c)(6) - the name, description, depth, and thickness of the formation into which fluids are to be injected, and appropriate geological data on the injection zone and confining zone, including litho/ogic descriptions and geologic names; Injection in the Orion waterflood pilot will be into the O Sand interval of the Schrader Bluff formation. The top of the O Sand interval lies at 4,347' tvdss in the V-1051 injection well, and the base of the O Sand interval lies at -4,719' tvdss, for a total thickness of 372' tvdss (Exhibit F). Geologic structure in the waterflood pilot area is shown as Exhibit G. Across section across the area is shown as Exhibit H. The O Sand interval is sub-divided into seven (7) individual units, from deepest to shallowest, referred to as the OBf, OBe, OBd, OBc, OBb, OBa, and OA intervals. These intervals generally consist of a mudstone or muddy siltstone basal non-reservoir section which grades upward into an upper sand member. The top of the sand intervals are typically truncated abruptly by the basal member of the next overlying interval. Water injection will take place into the OA, OBa, OBb, OBc, and OBd Sand intervals via existing perforations; the basal OBe and OBf units are not perforated and will not be receiving injection water. The injection interval extends from the base of the clean sand interval in the OBd Sand at a depth of 4,605' tvdss up to the top of the OA Sand at -4,347' tvdss, for a total interval thickness of 258'. The OBd interval is 63' thick and consists of a basal muddy siltstone that coarsens upward into a sandstone, with a total of 45' of net sand. The OBc interval is 52' thick, with a total of 21' of net sand. The basal portion of the OBc interval is non-reservoir muddy siltstone which grades upward into a clean sand section at the top of the interval and is abruptly truncated by the OBb interval. The OBb interval is 58' thick, with a total of 43' of net sand. The cleanest, highest permeability sand in this interval is in the uppermost 16' of the unit. The OBa interval is 42' thick, with 27' of net sand in two distinct lobes. The lower lobe is 11' thick and is separated from the upper 16' lobe by a 10' non-reservoir interval. The top of the OBa interval is abruptly truncated by the basal non- reservoir interval of the OA. 4 5 The OA interval, at 66' thick is the thickest of all the O Sand intervals in the area of the waterflood pilot. The basal non-reservoir interval of 25' is overlain by a cleaning upward sand section with a total of 36' of net sand. The top perforation in V-1051 is at the top of the OA Sand. The OA interval is abruptly truncated and capped by the Nc interval, which has 62' of silt and mudstone in its basal interval, with an overlying thin sand section. 7. 20 AAC 25.402 (c)(7) - logs of the injection wells if not already on file with the commission; All logs from well V-105i are already on file with the commission. 8. 20 AAC 25.402 (c)(8) - a description of the proposed method for demonstrating mechanical integrity of the casing and tubing under 20 AAC 25.412 and for demonstrating that no fluids will move behind casing beyond the approved injection zone, and a description of (A) the casing of the injection wells if the wells are existing; or (B) the proposed casing program, if the injection wells are new; Well V-1051 was permitted and drilled for injection service for the Borealis Pool and the Schrader Bluff formation. The casing program for this well was permitted and completed in accordance with 20 AAC 25.030. The completion diagram for well V-1051 is shown as Exhibit I. Completion diagrams for wells V-201 and V- 202 are included as Exhibits J and K, respectively. A cement bond log has been run on well V-105i that demonstrates good cement integrity between the Kuparuk River and Schrader Bluff formations, as well as above the Schrader Bluff formation. The casing program is included with the "Application to Drill" for V-1051 and is documented with the AOGCC in the completion record. API injection casing specifications are included on the drilling permit application. The injection casing was cemented and tested in accordance with 20 AAC 25.412. 9. 20 AAC 25.402 (c)(9) - a statement of the type of fluid to be injected, the fluid's composition, the fluid's source, the estimated maximum amounts to be injected daily, and the fluid's compatibility with the injection zone; Type of Fluid/Source Fluids requested for injection for the Orion pilot project are: a. Produced water from Prudhoe Bay Unit production; b. Tracer surrey fluid to monitor reservoir performance; c. Fluids injected for purposes of stimulation per 20 AAC 25.280(a)(2); and 5 6 d. Non-hazardous filtered water collected from well house cellars, well pads and PBU reserve pits. The initial target rate will be 3,000 bwpd with a maximum daily rate of approximately 10,000 bwpd. Water compatibility problems are not expected based on experience with Polaris Pool water, which is expected to have a similar composition. Polaris Pool water and PBU produced water composition and compatibility were documented with the commission in the application for the Polaris Area Injection Order. 10. 20 AAC 25.402 (c)(10) -the estimated average and maximum injection pressure; During the pilot project period, the maximum injection pressure will be 2,800 psi. Well V-105i wellhead injection pressure will be determined by the Borealis Pool requirements, but the average wellhead injection pressure is expected to be 2,200 psi. Injection rate into the Schrader Bluff formation in well V-1051 will be controlled by flow restriction at the downhole injection mandrel adjacent to the perforations into the Schrader Bluff formation. 11.20 AAC 25.402 (c)(11) -evidence to support a commission finding that each proposed injection well will not initiate or propagate fractures through the confining zones that might enable the injection fluid or formation fluid to enter freshwater strata; Well V-201 was hydraulically fracture stimulated in the OA Sand. The overlying Mc Sand is considered wet with approximately 70% water saturation. Production from well V-201 has shown very little water production indicating that the fracture did not extend vertically to the Mc Sand. Directly above the top of the injection zone in the OA Sand, there is a mudstone at the base of the overlying Nc Sand, which is approximately 60 ft thick. This may provide fracture confinement to the O Sands. Confirmation of vertical confinement is an objective of the pilot project. Efforts will be made to acquire data to demonstrate containment while injecting above fracture gradient. 12.20 AAC 25.402 (c)(12) - a standard laboratory water analysis, or the results of another method acceptable to the commission, to determine the quality of the water within the formation into which fluid injection is proposed; Although no produced water is available to perform a water analysis on Orion water, it is expected to be similar to Polaris Pool water quality, described in the Polaris Area Injection Order Application. Water samples will be obtained from well V-201 during the pilot project. 6 13. 20 AAC 25.402 (c)(13) - a reference to any applicable freshwater exemption issued under 20 AAC 25.440; Aquifer Exemption Order #1, dated July 11, 1986, exempts all portions of the aquifers beneath the Western Operating Area of the PBU, including the area designated for the Orion waterflood pilot project. 14. 20 AAC 25.402 (c)(i4) - the expected incremental increase in ultimate hydrocarbon recovery; Reservoir modeling indicates an incremental recovery from waterflooding to be approximately 10 - 20% of the original oil in place, relative to primary depletion. 15. 20 AAC 25.402 (c)(15) - a report on the mechanical condition of each well that has penetrated the injection zone within aone-quarter mile radius of a proposed injection well. There are no wells that penetrate the injection zone within aone-quarter mile radius of well V-105i. Thank you for your timely consideration. Any questions regarding this request should be directed to myself at 564-5110. Sincerely, .._ ~. $l2~-l 03 Brian Huff Satellite Resource Manager Greater Prudhoe Bay Attachments Exhibit A - V-201 and V-202 Well Test Plots Exhibit B -Surface and Bottomhole Locations for Wells V-105i, V-201 & V-202 Exhibit C -Location of V-105i, V-201 & V-202 Wells Exhibit D -Affidavit of Surface Owner Notification Exhibit E - V-Pad Plot Plan Exhibit F -Well V-105i Log (Confidential) Exhibit G -Orion Top OA Depth Structure Map (Confidential) Exhibit H - Waterflood Pilot Area Cross Section (Confidential) Exhibit I -Completion Diagram for Well V-1051 (Confidential) Exhibit J -Completion Diagram for Well V-201 (Confidential) Exhibit K -Completion Diagram for Well V-202 (Confidential) 7 • 8 Cc: Maureen Johnson, BPXA M. Vela, Exxon Mobil Corp. K. Griffin, Forest Oil Corp. D. Kruse, CPAI G.M. Forsthoff, Chevron U.S.A. Inc. G. Gustafson, BPXA R. Jacobsen, BPXA D. Schmohr, BPXA M. Kotowski, DNR M. Worcester, CPAI S. Luna, ExxonMobil Corp. Bob Loeffler, DML&W, DNR 8 • Exhibit A - V-201 and V-202 Well Test Plots V-201 1400 _r ~__ _.----,- I ~ I I I I I Initial Test on Gas Lift I I I I I 200 I I I I I I i I I I I I I I I I I I 1 I ---- -I- -------*-------I--------~-------+-------~-------1------- O I I I I I I I I 1 1 I I I I I I I I I I I I I I 1000 _ _I_ _ _ I I I I I I I I I I I I 1 I 1 I _ _ _ _ J _ _ _ _ _ _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I 800 I I I _ _ _ _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I 1 I I I I Converted to Jet Pump I I I I I v-2o1 ~ ~ I I I I I I I I 600 _______I___ I 1 _ _______ __r____ __I_______ _______T__ __ ~_______I__ ___ I I I I I I I I I I I I I 00 I I I -------I--- I I I I I I I I I I I I I I I I I I I I I I I --- -------*-------I-------~-------+-------~-------I------- I I I I 1 I I I I I I I I I 00 I I I I I I 1 I I I I I I I I I I I I I I 1 I I _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 5/24/02 7/13/02 9/1/02 10/21/02 12/10/02 1/29/03 3/20/03 5/9/03 6/28/03 8/17/03 Date V-202 8000 I I I I 7000 _ I _ I I 6000 - -~-/ 5000 0 p 4000 m 3000 2000 1000 I I I 1 I I I I I I I I I I I I I I I I I I I 1 I I I I _ J _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ , _ _ _ _ _ _ T _ _ _ _ _ _ _ r _ _ _ _ _ _ _I_ _ _ _ _ _ _ , _ _ T _ _ _ _ _ _ _ r _ _ _ _ _ _ _ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _I_ _ _ _ _ _ _ J _ _ _ _ _ _ _ 1 _ _ _ _ _ _ _ L _ _ _ _ _ _ _', I I I I I I I I I I I I I I I I I I I I I I I I I I I I -___-- _I- I I I I I I i I -~-------T-------.--- -------I-------T-------r------- I 1 I I I i 1 I I I I I I 1 I I I I I I I I 1 I I I I I I I _ _ _ _ _ ~ _ _ _ _ _ _ _ _ _ _ _ Y _ _ _ _ _ _ _ - - - - - - -I - ~ - - - - - - - + - - - - - - - ~ - - - - - - -I- - I I I 1 I I I I I I I I 1 I I I I I I I I I I I I I I I I I I I I I I _ _ _ _ _ _ _I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _I_ _ _ _ _ _ _ _1_ _ _ _ _ _ _ - _ _ _ _ _ _ _ _ _ _ _ I I I 1 I I I I I I I 1 I I I I I I I 1 I I 1 I I I I I I I I _______1_______..{_______+_______F_______I_______~_______+_______~___ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ~ Oil -~- Oil 7/2/03 7/4/03 7/6/03 7/8/03 7/10/03 7/12/03 7/14/03 7/16/03 7/18/03 7/20/03 Date • • Exhibit B -Surface and Bottomhole Locations for Wells V-105i, V-201 & V-202 Exhibit C -Location of V-1051, V-201 & V-202 Wells 564 -4345 • • -4315 V-Pad Wells with 1/4 mile • radius circle around V-105 i L-107 V-202 Penetrations shown at -434s v 103 Schrader Bluff To O A - 423 V-106 • 5.974.0 V-102 - 43 WKUPST-01 • -427 V-105i • -4403 -4 48 V-1~T'f 104 s. s72. e _42ss • • -201 -43554395 V-107 429 V-10 - -42s~ 11 • • -4355 336-4~~~ s. s7e. e -4328 -4 09 V-Pad 5.969.0 v-117 • 000 586.080 588.000 598.080 592.000 594.008 596.008 598.000 • • Exhibit D AFFIDAVIT OF SURFACE OWNER NOTIFICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT I, Brian D. Huff, declare and affirm as follows: 1. I am the Greater Prudhoe Bay Viscous Oil Manager for BP Exploration (Alaska) Inc., the designated operator of the proposed Orion Waterflood Pilot, and as such have responsibility for Orion operations. 2. On August 22, 2003 I caused copies of the Application for the Orion Waterflood Pilot to be provided to the following surface owners and operators of all land within a one-quarter mile radius of the proposed injection area: OUerator• BP EXPLORATION (ALASKA), INC. ATTENTION: MAUREEN JOHNSON PERFORMANCE UNIT LEADER GREATER PRUDHOE BAY P.O. BOX 1.96612 ANCHORAGE, AK 99519-6612 Surface Owners• STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES ATTENTION: BOB LOEFFLER, DIRECTOR DIVISION OF MINING, LAND & WATER 550 WEST 7TH AVENUE, SUITE 1070 ANCHORAGE, AK 99501-3510 Date • ~ 02 ~ a ~0 3 ~• Brian D. Huff Declared and affirmed before me this ~ day of . ~, ~: v ,~~ 4~,: ~' ~ . -.,~ ,°, ~~~~~'111}}~.11,24'~'~ Notary Public in ~nd for Alaska My commission expires: o~ ~ 0 Exhibit E - V-Pad Plot Plan t i ti~ ~i 7( \l 7 ~t 1 1 t S I wai wm~,cm wm~ ~~ wr~u Atbr wai #.or~ X11' ~~~ ~ ;c ~~~~i~~~ a~a~v~v~v® 4t u i ~Q aa~o~ooaooaa ~~g~~~ y ~~~~~~ aa~o~ava~v ~~ .~.~ ® ®` oaoooaapa~a v ~~y~$; I' I 0 71^IIMDIIr1~IF TQO' ~' l a~~: go~®oo~ at~uE: ~ ~ ~ toor wuw ~~ ; spy PRUDFIpE BAY ~JII~T' - Y PAD