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Home My WebLink AboutERIO 003 e e Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. B:.R 10 003 Order File Identifier Organizing (done) D Two-sided 1111111111111111111 D Rescan Needed 11111111I1111111111 RESCAN ~olor Items: D Greyscale Items: DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Diskettes, No. D Other, No/Type: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: NOTES: Date tl hn/Of/; D Other:: BY: ~ /5/ mE ,}IIIIIIIIIIIIIIIIII mp &,[L Project Proofing BY: ~ Dateu) d-.7/ D h Scanning Preparation BY: Date: + = TOTAL PAGES (Count does not include cover sheet) /5/ f£J Production Scanning 1111111111111111111 Stage 1 Page Count from Scanned File: (c;"3 (Count does include cover sheet) VYES BY: Page Count Matches Number in Scanning Preparation: ~ Date: I' /~7 /O~ If NO in stage 1, page(s) discrepancies were found: /5/ NO VV\P Stage 1 BY: YES NO Maria Date: /5/ 11111111111I11 "III Scanning is complete at this point unless rescanning is required. ReScanned 111111111111111111I BY: Maria Date: 151 Comments about this file: Quality Checked 1111111111111111111 10/6/2005 Orders File Cover Page. doc • • INDEX ENHANCED RECOVERY ORDER NO. 3 Redoubt Unit 1. May 10, 2006 Forest Oil Company's request for an Enhanced Recovery Pilot Project, attachment 1 and 3 held confidential 2. May 21, 2006 Notice of Hearing Journal of Commerce and Peninsula May 28, 2006 Clarion, Affidavit of Publication and e-mail and mailing List 3. November 5, 2008 Pacific Energy Resources Ltd. request for extension of Rule 1 until 11/6/2010 (erio 3 -001) 4. March 9, 2009 Pacific Energy Resources, Ltd. Filing of Chapter 11 Restructuring 5. December 27, 2010 CIE request for extension of ERIO WMRU 2A (ERIO 3.002) ENHANCED RECOVERY ORDER NO. 3 . . STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: THE APPLICATION OF FOREST OIL CORPORATION for an order authorizing a pilot waterflood pro- ject designed to test the potential for enhanced oil recovery in the West McArthur River Oil Pool, West McArthur River Unit, Cook Inlet, Alaska IT APPEARING THAT: ) Enhanced Recovery Injection Order No. 03 ) ) West McArthur River Unit ) West McArthur River Oil Pool ) Well West McArthur River Unit No. 2A ) ) November 06,2006 1. By letter and application dated May 10, 2006, Forest Oil Corporation ("Forest") as Operator of the West McArthur River Unit ("WMRU") requested an order from the Alaska Oil and Gas Conservation Commission ("Commission") to authorize pilot wa- ter injection into well West McArthur River Unit No. 2A ("WMRU #2A") to test the potential for enhanced oil recovery under 20 AAC 25.402. 2. Notice of a public hearing was published in the Peninsula Clarion on May 21, 2006, and the Alaska Journal of Commerce on May 28, 2006. 3. No comments, protests or request for public hearing were received during the com- ment period. 4. The Commission determined it had sufficient information as a basis for ruling, and the tentative public hearing was vacated. FINDINGS: I. Operator: Forest is operator of the West McArthur River Oil Pool in the WMRU, Cook Inlet, Alaska. 2. Proiect Location: The surface location of well WMRU #2A is 2,804' from the south line and 1,418' from the west line of Section 16, T8N, R14W, Seward Meridian. The bottomhole lo- cation is 2,067' from the south line and 2,616' from the east line of Section 10, T8N, and RI4W, Seward Meridian. The surface location of the well is onshore on the west- ern side of Cook Inlet and the bottomhole location is approximately 1.5 miles offshore. Enhanced Recovery Injectiotder No.3 November 6, 2006 . Page 2 3. Operators/Surface Owners Notification: Forest 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 Forest. The State of Alaska, Department of Natural Resources and the Salamatof Native As- sociation, Inc. are the only affected surface owners. 4. Description of Operation: Current development of the field consists of three active production wells in the West McArthur River Oil Pool. The WMRU waterflood pilot project plan includes a single injector, Well WMRU #2A. WMRU #2A is an oil producer that has been shut-in since January 2002. This well produced 2,095,933 barrels of oil. Forest proposes to inject produced water from the WMRU along with other Commis- sion-approved sources of water into well WMRU #2A, with the objective of testing enhancing recovery from the West McArthur River Oil Pool. Forest's application did not specify a proposed duration for this pilot project. 5. Geologic Information: a. Injection will occur within WMRU #2A into the Hemlock formation ("Hemlock"). Conservation Order 332 defines the West McArthur River Oil Pool as the accumu- lation of oil and gas that is common to and correlates with the accumulation found in the WMRU No. I well between the measured depths of 13,174 and 13,660' (9,292 to 9,632' true vertical depth subsea, or "TVDSS"). b. The Hemlock is an Oligocene-aged sequence of braided stream deposits consisting of interbedded conglomerates and sandstones, separated by thin interbeds of im- permeable claystone and siltstone. The Hemlock ranges from 400 to 500' thick through the proposed pilot project area. c. Non-reservoir facies consist of very fine-grained siltstone and generally imperme- able carbonaceous claystone and coals. d. The planned injection interval ranges from 9,251 to 9,438' ("TVDSS") in WMRU #2A, the same intervals that produced oil. 6. Well Logs: The initial formation logs obtained while drilling well WMRU #2A are on file with the Commission. 7. Mechanical Integrity and Well Design of Iniection Wells: The design and construction of WMRU #2A complies with the requirements of 20 AAC 25.030. The drilling and cementing records from WMRU #2A as well as WMRU #2 were reviewed and found satisfactory to isolate injected fluids to the ap- proved interval. Enhanced Recovery Injectíolder No.3 November 6, 2006 . Page 3 8. Injection Rates. Pressures. Fracture Propagation: The initial injection rate will be 3,000 to 4,000 barrels water per day ("BWPD"), and may vary according to production from WMRU wells. The injection rate will be less than the reservoir off-take, but will help minimize reservoir pressure depletion. The pilot water flood will be operated to prevent fracturing of the confining zone or the Hemlock. The estimated maximum surface injection pressure for well WMRU #2A that will prevent fracturing the Hemlock is 4,430 psi. Operation of the injection well will be at pressures less than that required to initiate or propagate fractures through confining zones. 9. Type of Fluid / Source Water Analysis: The primary fluid requested for injection is produced water from wells WMRU #5, WMRU #6, and WMRU #7STl within the West McArthur River Oil Pool. Compati- bility is not an issue since the produced water source is the Hemlock. In addition to the produced water, Forest is also requesting permission to inject water from the following other sources of water. Osprey platform deck drainage, Osprey platform gray water, Osprey platform treated sanitary waste, produced Hemlock water from the Redoubt Unit, produced Tyonek water from West Foreland, storm water from secondary containment areas around the tank farm at Kustatan Production Facil- ity ("KPF"), and storm water from secondary containment areas round the tank farm at WMRU. Laboratory testing and fluid studies showed no compatibility issues between any of these sources. 10. Freshwater Information: Salinity analysis of the nearby WMRU #4D disposal well indicates that waters con- taining less than 10,000 ppm total sodium chloride extend to a depth of approximately 5,000' TVDSS in the project area, or about 4,250' shallower than the proposed injec- tion interval for this operation. 11. Expected Increase in Hydrocarbon Recovery: The crude oil being produced from the West McArthur River Oil Pool has an API gravity of 27.7 degrees, a gas oil ratio of 235 scf/stb, and a bubble point pressure of approximately 1,400 psia. Primary depletion of this pool from the initial reservoir pressure of 4,095 psia to the bubble point pressure would be expected to result in re- covery of 4.5% of the original oil in place ("OOIP"). Recovery to date has been between 31 and 37%, depending on the estimate used for OOIP, which Forest attrib- utes to aquifer pressure support. It is expected that the proposed pilot enhanced oil recovery project will further enhance this pressure support and allow even greater re- covery from the pool. Forest reports that other Hemlock water flood projects have resulted in recoveries of as much as 42%. Data acquisition on injection response and recovery benefits is an objective of the pilot project. Enhanced Recovery Injectiotder No.3 November 6, 2006 . Page 4 12. Mechanical Condition of Adjacent Wells: There is one well that penetrates the Hemlock within a quarter mile of the WMRU #2A. WMRU #7 A penetrates the Hemlock approximately 834' northwest of WMRU #2A. The drilling and cementing records for #7 A were reviewed with no indication that the wellbore would provide a conduit that could allow the escape of fluids from the Hemlock. CONCLUSIONS: I. The application requirements of20 AAC 25.402 have been met. 2. A review of the well records indicates that well construction of WMRU #2A and sur- rounding wells is satisfactory to isolate injected fluids to the Hemlock. Well integrity for WMRU #2A must be demonstrated according to 20 AAC 25.412 (c). 3. Water injection is anticipated to increase recovery. 4. Proper well construction and more than 500 aggregate feet of interbedded siltstone and claystone between the injection interval and water of less than 10,000 ppm so- dium chloride will protect any potential underground sources of drinking water. 5. Sufficient information has been provided to authorize pilot water injection into the West McArthur River Oil Pool to evaluate the responsiveness of the West McArthur River Oil Pool to waterflood development. 6. Injection pressure will be maintained to prevent breaching the confining intervals. 7. Injected fluids will be confined within the appropriate receiving intervals by imper- meable lithology, cement isolation of the well bore and appropriate operating conditions. 8. Reservoir and well surveillance coupled with regularly scheduled mechanical integ- rity tests will demonstrate appropriate performance of the enhanced oil recovery project and disclose anomalous performance. 9. An annual report will keep the Commission apprised of the pilot project's progress. NOW, THEREFORE, IT IS ORDERED THAT: The underground injection of fluids for evaluation of enhanced oil recovery is author- ized in the WMRU #2A, subject to the following rules and the statewide requirements under 20 AAC Chapter 25 to the extent not superseded by these rules. Rule 1: Expiration Date This Order shall expire 24 months after its effective date. Rule 2: Authorized Injection Strata The West McArthur River Oil Pool, as defined in Conservation Order 332, is the strata authorized for injection for pressure support and enhanced oil recovery injection. Enhanced Recovery InjectiOltder No.3 November 6, 2006 . Page 5 Rule 3: Fluid Injection Well Well WMRU #2A is the only well authorized for fluid injection during this pilot project. Well WMRU #2A's bottomhole location is in Section 10, T8N, and RI4W, Seward Me- ridian. Rule 4: Authorized Fluids for Enhanced Recovery The only fluids authorized for injection are: a. Produced water from the West McArthur River Oil Pool of the WMRU; b. Osprey platform deck drainage; c. Produced Hemlock water from the Redoubt Unit; d. Produced Tyonek water from West Foreland; e. Storm water from secondary containment areas around the tank farms at Kustatan Production Facility and WMRU. Rule 5: Authorized Injection Pressure for Enhanced Recovery a. Normal injection pressures must be maintained below the parting pressure of the Hem- lock formation. b. Injection pressures must be maintained so that injected fluids do not fracture the con- fining zone or migrate out of the approved injection stratum. Rule 6: Demonstration of Tubin2/Casin2 Annulus Mechanical Inte2rity The mechanical integrity of an injection well must be demonstrated before injection be- gins, and before returning a well to service following a workover affecting mechanical integrity. A Commission-witnessed mechanical integrity test must be performed after in- jection is commenced for the first time in a well, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Subsequent tests must be performed at least once every four years thereafter (except at least once every two years in the case of a slurry injection well). The Commission must be notified at least 24 hours in advance to enable a representative to witness mechanical integrity tests. Unless an alternate means is approved by the Commission, mechanical integrity must be dem- onstrated by a tubing/casing annulus pressure test using a surface pressure of 1500 psi or 0.25 psi/ft multiplied by the vertical depth of the packer, whichever is greater, that shows stabilizing pressure and does not change more than 10 percent during a 30-minute period. Results of mechanical integrity tests must be readily available for Commission inspection. Rule 7: Pilot Project Surveillance Prior to initiating injection, a baseline temperature survey within WMRU #2A is re- quired from above the West McArthur River Oil Pool to total depth of the well. Within 60 days after injection begins, a step rate test is required. The need for subsequent tem- perature or step rate tests shall depend on injection performance or notable performance anomalies. The tubing and casing annuli pressures of each injection well must be monitored at least daily, except if prevented by extreme weather condition, emergency situations, or simi- Enhanced Recovery InjectiO!der No.3 November 6, 2006 . Page 6 lar unavoidable circumstances. Monitoring results shall be documented and made avail- able for Commission inspection. Information gathered from the pilot, including daily wellhead injection pressures and rates, results of injection surveys, shall be monitored and provided monthly to the Commission until the maximum surface pressure is determined by a step-rate test. In addition to reporting requirements of 20 AAC 25.432 (1) an annual progress report of pilot operations shall be submitted within 90 days of the project startup anniversary and annually thereafter. The progress report shall contain information regarding project pa- rameters including but not limited to: a. Reservoir V oidage balance within the project area. b. Analysis of pressure response and production response. c. Analysis of injection performance. d. Analysis of fluid containment surveys, step-rate tests or MIT's that would demon- strate confinement of injected fluids. e. Review of any specialized tests performed to gauge performance and results of the pilot project. Rule 8: Notification of Improper Class II Injection Injection of fluids other than those approved under Rule 4 is considered improper Class II injection. Upon discovery of such an event, the operator must immediately suspend injection, notify the Commission, and provide details of the operation. Additional noti- fication requirements of any other State or Federal agency remain the operator's responsibility. Rule 9: Well Inte~rity Failure and Confinement Whenever any pressure communication, leakage or lack of injection zone isolation is indicated by injection rate, operating pressure observation, test, survey, log, or other evidence, the operator shall immediately notify the Commission and submit a plan of corrective action on a Form 10-403 for Commission approval. The operator shall im- mediately shut in the well if continued operation would be unsafe or would threaten contamination of freshwater, or if so directed by the Commission. A monthly report of daily tubing and casing annuli pressures and injection rates must be provided to the Commission for all injection wells indicating well integrity failure or lack of injection zone isolation. Rule 10: Other Conditions It is a condition of this authorization that the operator complies with all applicable Com- mission regulations. The Commission may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. Rule 11 Administrative Actions Enhanced Recovery Injectiotder No.3 November 6, 2006 . Page 7 Unless notice and public hearing is otherwise required, the Commission may administra- tively waive or amend any rule stated above 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 fluid movement outside of the authorized injection zone. o age, Alaska and dated November 6,2006. Daniel T. Seamount, Jr. Commissioner ~~1'" Cathy . Foerster Commissioner AS 31.05.080 provides'thå{wiihin 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 23'd 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., 10th day after the application for rehearing was filed). Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 . David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 \t~ 1, ~(\ \Q \ 11 (6Lf \' \ \ \ \ Various Orders . . Subject: Various Orders From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 08 Nov 200608:35:35 -0900 To: undisclose n BCC: ,Christ n <c.hansen@iogcc.state.ok.us>, ·e Hubble <hubbletl@bp.com>, Sondra Stewman <Ste a D@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, trmjrl <trmjrl@aol.com>,jdarlington <jdarlington@forestoil.com> son <knelson@petroleumnews.com>, cboddy <cboddy@usibelli.com>, Dalton <mark.dalton@hdrinc.com>, Shannon Donnelly <shannon.donnelly@conocophillips.com>, "Mark P. Worcester" <mark.p.worcester@conocophillips.com>, Bob <bob@inletkeeper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr@dnr.state.ak.us>, bbritch <bbritch@alaska.net>, mjnel <mjnelson@purvingertz.com>, Charles O'Donnell <charles.o'donnell@veco.com>, "R L. Skillern" <SkilleRL@BP.com>, "Deborah J. Jones" <JonesD6@BP.com>, "St R. Rossberg" <RossbeRS@BP.com>, Lois <lois@inletkeeper.org>, Dan Bross <ku s@kuac.org ordon Pospisil <PospisG@BP.com>, "Francis S. Sommer" <SommerFS@BP.co >, Mikel Schultz <Mikel.Schultz@BP.com>, "Nick W. Glover" <GloverNW@BP.com>, "Daryl J. Kleppin" <KleppiDE@BP.com>, "Janet D. Platt" <PlattJD@BP.com>, "Rosanne M. Jacobsen" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, mckay <mckay@gci.net>, Barbara F Fullmer <barbara.f.fu conocophillips.com>, Charles Barker <barker@usgs.gov>, doug_ ultze <doug_schul ergy.com>, Hank Alford <hank.alford@exxonmobil.com>, M <yesnol@g . et>, gspfoff <gspfoff@aurorapower.com>, Gregg Nad <gregg.nady@s Steece <fred.steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>,jejo 'ejone uro wer.com>, dapa <dapa@alaska. , jroderick <jroderick@gci.net>, eyancy <ey @se et>, "James M. Ruud" <james.m.ruu onocophillips m>, Brit Lively <mapalaska@ak.ne <jah@dnr.state.ak.us>, buonoje <bu bp.com>, Mark Hanley <mark_hanley anadarko.com>, loren_leman <loren_leman@gov.state.ak.us>, Julie Houle <julie_houle@dnr.state.ak.us>, John W Katz <jwkatz@sso.org>, tablerk <tablerk@unocal.com>, Brady <brady@aoga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@borough.kenai.ak.us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <john.s.haworth@exxonmobil.com>, marty <marty@rkindustrial.com>, ghammons <ghammons@aol.com>, rmclean <rmclean@pobox.alaska.net>, mkm7200 <mkm7200@aol.com>, Brian Gillespie <ifbmg@uaa.alaska.edu>, David L Boelens <dboelens@aurorapower.com>, Todd Durkee <TDURKEE@KMG.com>, Gary Schultz <gary_schultz@dnr.state.ak.us>, Wayne Rancier <RANCIER@petro-canada.ca>, Brandon Gagnon <bgagnon@brenalaw.com>, Paul Winslow <pmwinslow@forestoil.com>, Sharmaine Copeland <copelasv@bp.com>, Kristin Dirks <kristin_dirks@dnr.state.ak.us>, Kaynell Zeman <kjzeman@marathonoil.com>, John Tower <John.Tower@eia. e.gov>, Bill Fowler <Bill_Fowler@anadarko.COM>, Scott Cranswick <scott.cranswick s.gov>, Brad McKim <mckimbs@BP.com>, Steve Lambe <lambes@unocal.com>,jack newell <jack.newell@acsalaska.net>, James Scherr <james.scherr@mms.gov>, n1617 nocophillips.com, Tim Lawlor <Tim_Lawlor@ . m.gov>, Lynnda Kahn <Lynnda_Kahn@fws.gov>, Jerry Dethlefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, Tamera Sheffield <s d@aoga.org>, Jon Golt <Jon.Goltz@conocophillips.com>, Rog lman <roger.belman@con ophillips.com>, Mindy Lewis <mlewis@brenalaw.com>, Kari Moriarty <moriarty@aoga.org>, Patty Alfaro <palfaro@yahoo.com>, Jeff <smetankaj@unocal.com>, Todd Kratz <ToddKratz@chevron.com>, Gary Rogers <garyJogers@revenue.state.ak.us>, Arthur Copoulos <Arthur_Copoulos@dnr.state.ak.us>, Ken <ken@secorp-inc.com>, Steve Lambert <salambert@unocal.com>, Joe Nicks <news@radiokenai.com>, Jerry McCutcheon <susitnahydronow@yahoo.com>, Bill Walker <bill-wwa@ak.net>, Iris Matthews<Iris_Matthews@legis.state.ak.us>, Paul Decker <paul_decker@dnr.state.ak.us>, ,Aleutians East lof2 11/8/2006 8:50 AM Various Orders . . Borough <admin@aleutianseast.org>, Marquerite kremer <marguerite_kremer@dnr.state.ak.us>, ,Mike Mason <mike@kbbi.org>, Garland Robinson <gbrobinson@marathonoil.com>, Cammy Taylor <Camille_Taylor@law.state.ak.us>, Winton GAubert <winton_aubert@admin.state.ak.us>, Thomas E Maunder <tom_maunder@admin.state.ak.us>, Stephen F Davies <steve_davies@admin.state.ak.us>, Keith Wiles <kwiles@marathonoil.com>, Deanna Gam gamble@kakivik.com>, James B Regg <jim_regg@admin.state.ak.us>, Catherine P Foerster <c _foerster@admin.state.ak.us>, Bob <Bob@fairweather.com>, gregory micallef <micallef@c1earwire.net>, Laura Silliphant <laura _ silliphant@dnr.state.ak.us>, David Steingreaber <david.e.steingreaber@exxonmobil.com>, akpratts@acsalaska.net, Robert Campbell <Robert.Campbell@reuters.com>, Steve Moothart <steve _ moothart@dnr.state.ak.us>, A <anna.raff@dowjones.com>, Cliff Posey <c1iff@posey.org>, Paul Bloom <paul_ @ml.com>" Meghan Powell <Meghan.Powell@asrcenergy.com>, Temple Davidson <temple _ davidson@dnr.state.ak.us>, Walter Featherly <WFeatherly@PattonBoggs.com>, Cynthia B Mciver <bren_mciver@admin.state.ak.us> Jody Colombie <iody colombie@,admin.state.ak.us> Special Staff Assistant Alaska Oil and Gas Conservation Commission Department of Administration i. Content-Type: application/pdf erlO3.pdf Content-Encoding: base64 Content-Type: application/pdf aio12-1.pdf Content-Encoding: base64 Content-Type: application/pdf co478a-01.pdf Content-Encoding: base64 20f2 11/8/2006 8:50 AM . . DONE - Operator: Hearing Date: E/20 w Mc.,4r./-4.ur Ia~,... t/pt//- æ. 2A r:c:> re..6~ ~"-~ ~I -Z-COh ORDER: Area / Well: V' Application Complete Additional Information: Requested _ Additional Information: Requested _ Additional Information Complete ~ublic Notice Text Drafted on ; Received ; Received VIa VIa VIa VIa on ~~ on 2- d Questions for Operator Questions Drafted Questions Reviewed: By Team ; By Attorney General's Office Questions Sent to Operator VIa Response Received Response Complete V AU1œÞpublic Hearing Hearing Held Additional Information: Requested Additional Information: Requested Additional Information Complete VIa (o..COr.W ; Received ; Received VIa VIa VIa VIa Orde~ ~ Text Drafted f/zk by ':bR- _ Text Reviewed by Team f· 7 ß Text Sent to Attorney General's Office Text Reviewed by Attorney General's Office Text Reviewed by Other Agency Text Sent to Jody for Formatting / Publishing Text Sent to Commissioners Approved by Commissioners Published • • ~~p~C~ 0~ pL q~~lp / ,.a..M~,.~o.FA.o. ~sC~~7~ OI~ ~ `IAS 333 W. 7th AVENUE, SUITE 100 CO1~T5ERQA'1'IO1~T COMAIISSIOH ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 ADMINISTRATIVE APPROVAL NO. ERIO 3.001 Mr. Jim Arlington Vice President, Land & Government Affairs Pacific Energy Resources Ltd. 310 K Street, Suite 700 Anchorage, AK 99501 Re: Extension of Enhanced Recovery Injection Order No. 3 West McArthur River Unit; West McArthur River Oil Pool; Well West McArthur River Unit No. 2A Dear Mr. Arlington: By letter dated and received November 5, 2008, Pacific Energy Resources Ltd. (PERL) requests that the Alaska Oil and Gas Conservation Commission (Commission) approve a 24-month extension of the November 6, 2008, expiration date for the pilot waterflood project in the West McArthur River Oil Pool (WMROP), West McArthur River Unit (WMRU); the pilot waterflood project is authorized by Enhanced Recovery Injection Order No. 3 (ERIO 3). In accordance with Rule 11, Administrative Actions, of ERIO 3, PERL's request is approved: the expiration date specified in Rule 1 of ERIO 3 is extended from November 6, 2008 to November 6, 2010. All other conditions of ERIO 3 remain in effect. The Commission issued ERIO 3 to Forest Oil Corporation (Forest) on November 6, 2006. Under Rule 1 of ERIO 3, the order expired 24 months later: i. e., on November 6, 2008. The pilot waterflood authorized by ERIO 3 has not been initiated, but PERL, which succeeded Forest as operator of the WMRU, stated in the extension request that it intends to initiate the pilot waterflood after well WMRU No. 2A is worked over to repair tubing and restore the well's mechanical integrity. PERL anticipates that this work will occur in the spring of 2009, and then PERL intends to commence injection and gather the data necessary to determine whether waterflooding is an effective means of enhancing recovery in the WMROP. Amending the expiration date of ERIO 3 will allow PERL adequate time to conduct and analyze the results of the pilot waterflood project and decide whether to apply to make the project permanent or expand the project to the entire pool or both. Approving the extension request will not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. Therefore, the Commission is • • ERIO 3.001 November 10, 2008 Page 2 of 2 authorized, under Rule 11 of ERIO 3, to administratively amend Rule 1 of ERIO 3 to extend the expiration date to November 6, 2010. ENTERED at Anchorage, Alaska, and ~~ Daniel T. Seamount, Jr. Chair 10, 2008. Orman Cathy P. Foerster ~~~,~,~ b over Commissioner ,;~ TIt i~ ~'~ RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, 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 reconsid- eration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for re- consideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Fail- ure to act on it within ]0-days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days af- ter the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission other- wise distributes, the order or decision on reconsideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not in- cluded in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • Mary Jones David McCaleb Cindi Walker XTO Energy, Inc. IHS Energy Group Tesoro Refining and Marketing Co. Cartography GEPS Supply & Distribution 810 Houston Street, Ste 2000 5333 Westheimer, Ste 100 300 Concord Plaza Drive Ft. Worth, TX 76102-6298 Houston, TX 77056 San Antonio, TX 78216 George Vaught, Jr. Jerry Hodgden Richard Neahring PO Box 13557 Hodgden Oil Company NRG Associates Denver, CO 80201-3557 408 18th Street President Golden, CO 80401-2433 PO Box 1655 Colorado Springs, CO 80901 Mark Wedman Schlumberger Ciri Halliburton Drilling and Measurements Land Department 6900 Arctic Blvd. 2525 Gambell Street #400 PO Box 93330 Anchorage, AK 99502 Anchorage, AK 99503 Anchorage, AK 99503 Baker Oil Tools Ivan Gillian Jill Schneider 4730 Business Park Blvd., #44 9649 Musket Bell Cr.#5 US Geological Survey Anchorage, AK 99503 Anchorage, AK 99507 4200 University Dr. Anchorage, AK 99508 Gordon Severson Jack Hakkila Darwin Waldsmith 3201 Westmar Cr. PO Box 190083 PO Box 39309 Anchorage, AK 99508-4336 Anchorage, AK 99519 Ninilchick, AK 99639 James Gibbs Kenai National Wildlife Refuge Penny Vadla PO Box 1597 Refuge Manager 399 West Riverview Avenue Soldotna, AK 99669 PO Box 2139 Soldotna, AK 99669-7714 Soldotna, AK 99669-2139 Richard Wagner Cliff Burglin Bernie Karl PO Box 60868 PO Box 70131 K&K Recycling Inc. Fairbanks, AK 99706 Fairbanks, AK 99707 PO Box 58055 Fairbanks, AK 99711 North Slope Borough PO Box 69 Barrow, AK 99723 a~~~o~ ~ ~~z~~ Page 1 of 1 • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Wednesday, November 12, 2008 10:33 AM Subject: co505A-001 (Orion) aio26A-002 (Orion) co471-007 (Borealis) erio3-001 (West McArthur River) Attachments: erio3-001.pdf; co505A-001 A1026A-002 CO 341-007.pdf BCC:'Aaron Gluzman'; caunderwood@marathonoil.com; 'Dale Hoffman'; Fridiric Grenier; 'Joe Longo'; 'Lamont Frazer'; Marc Kuck; 'Mary Aschoff; Maurizio Grandi; P Bates; Richard Garrard; 'Sandra Lemke'; 'Scott Nash'; 'Steve Virant'; Tom Gennings; 'Willem Vollenbrock'; 'William Van Dyke'; Woolf, Wendy C (DNR); 'Aleutians East Borough'; 'Anna Raff ; 'Barbara F Fullmer'; 'bbritch'; 'Bill Walker'; 'Brad McKim'; 'Brandon Gagnon'; 'Brian Gillespie'; 'Brian Havelock'; 'Brit Lively'; 'Bruce Webb'; 'buonoje'; 'Cammy Taylor'; 'Cande.Brandow'; 'carol smyth ; 'Cary Carrigan'; 'Charles O'Donnell'; 'Chris Gay'; 'Cliff Posey'; 'Dan Bross'; 'dapa'; 'Daryl J. Kleppin'; 'David Brown'; 'David Hall'; David House; 'David L Boelens'; 'David Steingreaber'; 'ddonkel'; 'Deborah J. Jones'; 'doug_schultze'; 'Eric Lidj i '; 'Evan Harness'; 'eyancy'; 'foms2@mtaonline.net'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pospisil'; 'Gregg Nady'; 'gregory micallef ; 'gspfoff ; 'Hank Alford'; 'Harry Engel'; 'jah'; 'James Scherr'; 'Janet D. Platt'; 'jejones'; 'Jerry McCutcheon'; 'Jim Arlington'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'John W Katz'; johnny.aiken@north-slope.org; 'Jon Goltz'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; knelson@petroleumnews.com; 'Krissell Crandall'; 'Kristin Dirks'; 'Laura Silliphant'; 'Lois'; 'Lynnda Kahn'; 'mail=akpratts@acsalaska.net'; 'mail=fours@mtaonline.net'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'Matt Rader'; Melanie Brown; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'Nick W. Glover'; NSK Problem Well Supv; NSU, ADW Well Integrity Engineer; 'Patty Alfaro'; 'Paul Decker'; 'Paul Winslow'; Pierce, Sandra M (DNR); 'Randall Kanady'; 'Randy L. Skillern'; 'rcrotty'; Rice, Cody J (DNR); 'rmclean'; 'Rob McWhorter '; rob.g.dragnich@exxonmobil.com; 'Robert Campbell'; 'Robert Fowler'; 'Robert Province'; 'Roger Belman'; 'Rudy Brueggeman'; 'Scott Cranswick'; 'Shannon Donnelly'; 'Sharmaine Copeland'; 'Sondra Stewman'; 'Sonja Frankllin'; 'Stan Porhola'; 'stanekj'; 'Steve Lambert'; 'Steve Moothart'; 'Steven R. Rossberg'; 'tablerk'; 'Tamera Sheffield'; 'Temple Davidson'; 'Terrie Hubble'; 'Tim Lawlor'; 'Todd Durkee'; Tony Hopfinger; 'trmjrl'; 'Walter Featherly'; 'Walter Quay'; 'Wayne Rancier'; Birnbaum, Alan J (LAW); Crisp, John H (DOA); Davies, Stephen F (DOA); Fleckenstein, Robert J (DOA); Foerster, Catherine P (DOA); Grimaldi, Louis R (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Mahnken, Christine R (DOA); Maunder, Thomas E (DOA); McIver, C (DOA); McMains, Stephen E (DOA); Noble, Robert C (DOA); Norman, John K (DOA); Okland, Howard D (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Saltmarsh, Arthur C (DOA); Scheve, Charles M (DOA); Seamount, Dan T (DOA); Smith, Chasity R (DOA); Williamson, Mary J (DOA) Attachments:erio3-OO1.pdf;co505A-001 AI026A-002 CO 341-007.pdf; Jody J. Colombie Special Assistant to the Commission Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 (907) 793-1221 Direct Line (907) 276-7542 Fax 11/12/2008 • • s = A =.= 1 __ E SEAN PARNELL, GOVERNOR ALASKA OIL AND GAS 333 W. 7th AVENUE, SUITE 100 CONSERVATION COMMISSION ANCHORAGE, ALASKA 99501 -3539 PHONE (907) 279 -1433 FAX (907) 276 -7542 ADMINISTRATIVE APPROVAL ENHANCED RECOVERY INJECTION ORDER 3.002 Mr. David Hall, CEO Cook Inlet Energy 601 W. 5th Ave., Ste. 310 Anchorage, AK 99501 Re: Request for Time Extension of Enhanced Recovery Injection Order No. 03, West McArthur River Unit, West McArthur River Oil Pool, Well West McArthur River Unit No. 2A. Dear Mr. Hall: By letter dated and received December 27, 2010 Cook Inlet Energy (CIE) requests a time extension of the West McArthur River Unit (WMRU) pilot waterflood project, authorized by Enhanced Recovery Injection Order (ERIO) No. 03. In accordance with Rule 11, Administrative Actions, of ERIO No. 03, CIE's request is approved. The expiration date specified in Rule 1 of ERIO No. 03 is extended until December 31, 2013. All other Rules of ERIO No. 03 remain in effect. On November 6, 2006 the Alaska Oil and Gas Conservation Commission ( AOGCC) issued ERIO No. 03, authorizing a pilot waterflood project by Forest Oil Corporation (Forest) in the West McArthur River Oil Pool, WMRU, Cook Inlet, Alaska. Forest did not initiate the approved waterflood, and Pacific Energy Resources Ltd. (PERL) succeeded Forest as operator of the WMRU. On November 10, 2008 the AOGCC approved a time extension of ERIO No. 03 until November 6, 2010, however PERL never undertook the necessary repair to well WMRU 2A to allow fluid injection. Since becoming operator of the WMRU, CIE has completed a tubing repair of WMRU 2A, and CIE now desires a further time extension of ERIO No. 03. WMRU 2A is currently producing, but CIE is in position to begin fluid injection. The requested ERIO No. 03 time extension should provide adequate time for pilot water injection and data acquisition necessary for prudent project evaluation. This time extension will not promote waste or jeopardize correlative rights, is based upon sound engineering and geoscience principles, and will not result in fluid movement outside of the authorized injection zone. Therefore, the AOGCC is authorized under Rule 11 of ERIO 3.002 • January 11, 2011 Page 2 of 2 ERIO No. 03 to administratively amend Rule 1 of ERIO No. 03, to extend the expiration date to December 31, 2013. ENTERED at Anchorage, Alaska and dated January 11, 20 . z} • 4 1°11 1 • ,,., . e • Cathy 9 . Foerster M K. Norman av r bmt#"' Commissioner Co is oner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, 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 reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The Commission shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 -days is a denial of reconsideration. If the Commission denies reconsideration, upon denial, this order or decision and the denial of re- consideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the Com- mission mails, OR 30 days if the Commission otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by in- action, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the Commission grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on re- consideration will be the FINAL order or decision of the Commission, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the Commission mails, OR 30 days if the Commission otherwise distributes, the order or decision on re- consideration. As provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the Commission by the application for reconsideration." In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Wednesday, January 12, 2011 1:47 PM To: Ballantine, Tab A (LAW); '(foms2 @mtaonline.net)'; '( michael .j.nelson @conocophillips.com)'; '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWeIIIntegrityCoordinator'; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts'; 'Brad McKim'; 'Brady, Jerry L'; 'Brandon Gagnon'; 'Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'carol smyth'; 'caunderwood'; 'Chris Gay'; 'Cliff Posey; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Steingreaber'; 'ddonkel @cfl.rr.com'; 'Deborah J. Jones'; Delbridge, Rena E (LAA); 'Dennis Steffy'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer; 'Fred Steece'; 'Gary Laughlin'; 'Gary Rogers'; 'Gary Schultz'; 'ghammons'; 'Gordon Pos isil 'Gorney, David L.% Greg Duggin'; o Y 9 rY � 9 � P 'Gregg Nady'; 'gspfoff; 'Harry Engel'; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner , 'Joe Nicks'; 'John Garing'; 'John Katz'; 'John S. Haworth'; 'John Spain'; 'John Tower'; 'Jon Goltz'; 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant'; 'Marilyn Crockett'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark Kovac'; 'Mark P. Worcester'; 'Marguerite kremer'; 'Michael Dammeyer'; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mikel Schultz'; 'Mindy Lewis'; 'MJ Loveland'; 'mjnelson'; 'mkm7200'; 'nelson'; 'Nick W. Glover'; 'NSK Problem Well Supv'; 'Patty Alfaro'; 'Paul Decker (paul.decker @alaska.gov)'; 'Paul Figel'; 'PORHOLA, STAN T'; 'Randall Kanady'; 'Randy L. Skillern'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; Scott, David (LAA); 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothat; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler'; 'Tina Grovier'; 'Todd Durkee'; 'Tony Hopfinger'; 'trmjrl'; 'Valenzuela, Mariam '; 'Vicki Irwin'; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; Bettis, Patricia K (DNR); caunderwood @marathonoil.com; 'Dale Hoffman'; 'David Lenig'; 'Gary Orr'; 'Jason Bergerson'; 'Joe Longo'; 'Lara Coates'; 'Marc Kuck'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Richard Garrard'; 'Sandra Lemke'; 'Talib Syed'; 'Tiffany Stebbins'; 'Wayne Wooster'; 'William Van Dyke'; Woolf, Wendy C (DNR); Aubert, Winton G (DOA) (winton.aubert@alaska.gov); Brooks, Phoebe L (DOA) (phoebe.brooks @alaska.gov); Colombie, Jody J (DOA) (jody.colombie @alaska.gov); Crisp, John H (DOA) (john.crisp @alaska.gov); Davies, Stephen F (DOA) (steve.davies @alaska.gov); Foerster, Catherine P (DOA) (cathy.foerster @ alaska.gov); Grimaldi, Louis R (DOA) (lou.grimaldi @alaska.gov); Johnson, Elaine M (DOA) (elaine.johnson @ alaska.gov); Jones, Jeffery B (DOA) (jeff.jones @alaska.gov); Laasch, Linda K (DOA) (linda.laasch @alaska.gov); Maunder, Thomas E (DOA) (tom.maunder @alaska.gov); McIver, Bren (DOA) (bren.mciver @alaska.gov); McMains, Stephen E (DOA) (steve.mcmains @alaska.gov); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA) (bob.noble @alaska.gov); Norman, John K (DOA) (john.norman @alaska.gov); Okland, Howard D (DOA) (howard.okland @alaska.gov); Paladijczuk, Tracie L (DOA) ( tracie.paladijczuk @ alaska.gov); Pasqual, Maria (DOA) (maria.pasqual @alaska.gov); Regg, James B (DOA) (jim.regg @alaska.gov); Roby, David S (DOA) (dave.roby @alaska.gov); Saltmarsh, Arthur C (DOA) (art.saltmarsh @alaska.gov); Scheve, Charles M (DOA) (chuck.scheve @alaska.gov); Schwartz, Guy L (DOA) (guy.schwartz @alaska.gov); Seamount, Dan T (DOA) (dan.seamount @alaska.gov); Shartzer, Christine R (DOA) Subject: ERIO 3.002 (WMRU 2A) and CO 642 Correction Attachments: erio 3- 002.pdf; co 642 correction.pdf Sam/La/at-ha/ J & h&r Alaokai Oar a Cave wattoo-w C (907)793-1223 (907)276-754-2 (/ x) 1 • • Mary Jones David McCaleb XTO Energy, Inc. IHS Energy Group George Vaught, Jr. Cartography GEPS P.O. Box 13557 810 Houston Street, Ste 200 5333 Westheimer, Suite 100 Denver, CO 80201 -3557 Ft. Worth, TX 76102 -6298 Houston, TX 77056 Jerry Hodgden Richard Neahring Mark Wedman Hodgden Oil Company NRG Associates Halliburton President 408 18 Street 6900 Arctic Blvd. Golden, CO 80401 -2433 P. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI K &K Recycling Inc. Land Department Baker Oil Tools P.O. Box 58055 P.O. Box 93330 795 E. 94 Ct. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 Jill Schneider North Slope Borough Gordon Severson US Geological Survey P.O. Box 69 3201 Westmar Circle 4200 University Drive Barrow, AK 99723 Anchorage, AK 99508 -4336 I Anchorage, AK 99508 Jack Hakkila Darwin Waldsmith James Gibbs P.O. Box 190083 P.O. Box 39309 P.O. Box 1597 Anchorage, AK 99519 Ninilchick, AK 99639 Soldotna, AK 99669 Kenai National Wildlife Refuge Penny Vadla Cliff Burglin Refuge Manager 399 West Riverview Avenue 319 Charles Street P.O. Box 2139 Soldotna, AK 99669 -7714 Fairbanks, AK 99701 Soldotna, AK 99669 -2139 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 • • 4 Cook Inlet Energy_ RECEIVED December 27, 2010 DEC 2 7 2010 Mr. Dan Seamount, Chair Alaska Oil & Gas Cans. Commission Alaska Oil and Gas Conservation Commission Anchorage 333 West 7 Ave., Suite 100 Anchorage, Alaska 99501 Re: Extension of Enhanced Recovery Injection Order No.3, West McArthur River Unit, West McArthur River Oil Pool, Well West McArthur River Unit No. 2A Dear Chairman Seamount: The Alaska Oil and Gas Conservation Commission ( "Commission "), on November 6, 2006, issued Enhanced Recovery Injection Order No.3 ( "ERIO3 ") approving the application submitted by Forest Oil Corporation dated May 10, 2006 to authorize pilot water injection into well West McArthur River Unit No. 2A (WMRU #2A ") to test the potential for enhanced oil recovery under 20 AAC 25.402. Pacific Energy Resources, Ltd. ( "PERL "), as Operator of the West McArthur River Unit ( "WMRU "), requested and received an additional 24 months until the expiration of ERIO3 so that Rule 1 read, after it was amended, "This Order shall expire 48 months after its effective date." Cook Inlet Energy, LLC ( "CIE "), as current owner and operator of the WMRU and WMRU #2A, hereby respectfully requests that the Commission administratively amend Rule 1 of ERIO3 to allow an additional 24 months until the expiration of ERIO3 so that Rule 1 would read, "This Order shall expire 72 months after its effective date." During the previous extension PERL never undertook the necessary tubing repair in WMRU #2A to allow injection of fluids. CIE completed the tubing repair in the WMRU #2A in early winter of 2010, completing the well as both a producer and injector. CIE is currently producing the WMRU #2A, but plans to commence fluid injection within the next three to twelve months should the Commission grant the extension of ERIO3. The requested extension would provide adequate time to commence the pilot water injection project and acquire data required for prudent evaluation prior to the amended expiration date requested for Rule 1 of ERIO3. CIE foresees no need to amend any other Rule in ERIO3 and considers all other issues and actions discussed in Forest's original application as still viable. Please feel free to call me (907- 433 -3805) with any questions or to discuss this matter further. Sincerely, `e/f, David Hall CEO Cc: Wendy Woolf, SOA/DNR/DO &G 601 W. 5` Avenue, Suite 310, Anchorage, AK 99501 (907) 334 -6745 * (907) 334 -6735 fax ~ 4 • Fr®m: Saltmarsh, Arthur C (DOA) Sent: Monday, March 09, 2009 11:08 AM Subject: FW: Pacific Energy files chapter-11, it's official!!! FYI. PACIFIC ENERGY RESOURCES LTD. ~ ~ ` Q 111 West Ocean Blvd., Suite 1240 Long Beach, California 90802 Telephone: (562) 628-1526; Fax: (562) 628-1536 Files for Chapter ii to Facilitate a Restructuring LONG BEACH, CALIFORNIA, Monday, March 9, 2009 - -Pacific Energy Resources Ltd. (the "Company")(TSX:PFE) announces today that it and its wholly owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The filing was precipitated by the dramatic decrease in the market price of oil over the past five months. Combined with the Company's pre-existing level of debt related to past acquisitions and poor capital market conditions, the Company's liquidity and cash flow is insufficient to operate its business and invest in its oil producing assets to increase production. Faced with these constraints, the Company and its subsidiaries filed petitions for reorganization under chapter 11 to facilitate access to an immediate source of liquidity as it works to restructure its debt. In connection with the filing, the Company is seeking customary authority from the Bankruptcy Court that will enable it to continue operating its business in the ordinary course of business. The requested approvals include requests for the authority to make wage and salary payments and continue various benefits for employees. In addition, the Company has negotiated a commitment for $40 million in debtor-in-possession ("DIP") financing. The DIP facility wraps and replaces two of the Company's three asset-based credit facilities and is being provided by the lenders of the two credit facilities that are being replaced. Upon Court approval, the DIP financing combined with the Company's operating revenue will provide sufficient liquidity to fund working capital, meet ongoing obligations and ensure that normal operations continue without interruption during its restructuring. About Pacific Energy Resources Pacific Energy Resources Ltd. is an oil and gas exploration and production company based in Long Beach, California, U.S.A. Additional information relating to the Company may be found on SEDAR at www.sedar.com. The Company's web site is www.PacEnergy.com. ON BEHALF OF THE BOARD OF DIRECTORS PACIFIC ENERGY RESOURCES LTD. I~ J Pacific Irner~, Resources Ltd. 310 K. Street, Suite 700 A.nchora~e, AK 99507 Office: 907-2~8-8600 Fa~c: 907-258-8601 ~av~d Hall Alaska ®perations Manager Main: 907-868-2133 Cell: 907-317-8239 d mh al lr'cc~,pace nerQv.com www_.pacenerw.com ~3 • Pacific Energy Resources Ltd 310 K Street, Suite 700 Anchorage, Alaska 99501 (907) 258-8600 Fax: (907) 258-8601 November 5, 2008 ~. _ . Chairman Daniel T. Seamount, Jr. Alaska Oil and Gas Conservation Commission 333 West 7~' Avenue, Suite 100 Anchorage, AK 99501 Re: Extension of Enhanced Recovery Injection Order No.3 West McArthur River Unit; West McArthur River Oil Pool; Well West McArthur River Unit No. 2A Dear Chairman Seamount: The Alaska Oil and Gas Conservation Commission ("Commission"), on November 6, 2006, issued Enhanced Recovery Injection Order No.3 ("ERI03") approving the application submitted by Forest Oil Corporation ("Forest") dated May 10, 2006 to authorize pilot water injection into well West McArthur River Unit No. 2A (WMRU #2A") to test the potential for enhanced oil recovery under 20 AAC 25.402. Pacific Energy Resources, Ltd. ("PEKE"), as Operator of the West McArthur River Unit ("WMRU") and for the Lessee, Pacific Energy Alaska Operating LLC "PEAO"), hereby respectfully requests that the Commission administratively amend Rule 1 of ERI03 to allow an additiona124 months until the expiration of ERI03 so that Rule 1 will read, after it is amended, "This Order shall expire 48 months after its effective date: ' PERL assumed responsibilities asOperator of the WMRU from Forest in January 2008. The repair of the tubing in the WMRU #2A, required in order to allow injection of fluids and compliance with Rule 6 of ERI03, had not been completed by Forest prior to PERL becoming Operator of the WMRU. PERL plans to commence and complete the tubing repair in the WMRU #2A in the spring of 2009 and commence fluid injection upon completion of the activities described in Rule 6 and Rule 7 of the ERI03. The requested extension would provide time to initiate the tubing repair, commence the pilot water injection project and acquire data required for prudent evaluation prior to the expiration date originally specified in Rule 1 of ERI03. PERL foresees no need to amend any other Rule in ERI03 and considers all other issues and actions discussed in Forest's original application as still viable. Please feel free to call either David Hall (907-868-2133) or myself (907-868-2112) to discuss this matter further. Sincerely, PACIFIC ENERGY RESOURCES, LTD. a ~ - _. Jim Arlington Vice President, Land & Government Affairs cc: David Ha11 Joe Kilchrist Page 1 of 1 Colombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Tuesday, November 04, 2008 3:59 PM To: jdarlington@pacenergy.com Cc: Davidson, Temple (DNR); Foerster, Catherine P (DOA) Subject: Expiration date for ERIO 3 Jim, I noticed while reviewing your proposed 18th Plan of Development (POD) for the West McArthur River Unit that you make reference to activities authorized under Enhanced Recovery Injection Order 3 (ERIO 3). Specifically, in the cover letter you state "While Pacific Energy has yet to initiate the pilot water flood project using the shut-in well WMRU #2A pursuant to the approval granted to Forest by the AOGCC in ERIO No.3 on November 6, 2006, Pacific Energy intends to initiate the pilot water flood..." And on page 3 of 9 of the proposed POD, which covers the time period of January 1, 2009, through December 31, 2009, it states "Pacific Energy intends to commence the pilot waterflood activities during the term of the 18th POD." I would like to point out that in accordance with Rule 1 of ERIO 3 the order expires 24 months after its effective date, or on November 6, 2008. In order to undertake the pilot water flood project authorized under ERIO 3 you would need to apply for and receive an extension from the Commission, which may be done administratively. An application for an extension must be filed with the Commission prior to the expiration of the original order, which means the Commission needs to receive it prior to the close of business on November 5th, or the Commission can not consider the extension request. If the Commission does not receive a timely application for extension of the expiration date of ERIO 3 Pacific Energy would have to submit a new application requesting an injection order from the Commission if you wish to initiate a water flood project. The new application would be subject to the Commission's public comment and hearing requirements. If you have any questions on this matter please let me know. Regards, Dave Roby Reservoir Engineer Alaska OiI and Gas Conservation Commission Phone: 907-793-1232 Fax: 907-276-7542 email: dave.roby@alaska.gov 11/10/2008 =tf;;t STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02614037 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE <,it \~~~~I '~t'. F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie Mav 17 2006 0 Anchorage, AK 9950 I PHONE PCN M (Q07) 7Q1 -1 ?? 1 - DATES ADVERTISEMENT REQUIRED: T Alaska Journal of Commerce May 28, 2006 0 301 Arctic Slope Ave #350 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE ATTACHED S~ND_ AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF ;1 Anchoraºe. AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 :IN AMnllNT o:::y r:r: ProM Ir: Ar:r:T :y NMR DIST LlQ 1 05 02140100 73451 2 3 4 ....-... t' REQUISITIONED BY: ( \ 6~ ) j{)hA~- ¡DIVISION APPROVAL: A ( vV V . . . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West McArthur River Unit West McArthur River Oil Pool Application for Enhanced Recovery Operations (Pilot Waterflood Project) By application dated May 10,2006, Forest Oil Corporation (Forest) as Unit Operator of the West McArthur River Unit requested the Commission to approve Enhanced Recovery Operations to authorize a pilot waterflood project in the West McArthur River Oil Pool. Forest proposes to inject water into an offshore oil pool in the Hemlock formation at a depth of9,251 to 9,438 feet below sea level to improve oil recovery from this pool. The West McArthur River Oil Pool ofthe West McArthur River Unit lies within T8N-R14W Seward Meridian. The Commission has tentatively scheduled a public hearing on this application for July 6, 2006 at 9:00 am at the offices of 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 June 13, 2006. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after June 21, 2006. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on June 30, 2006 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion ofthe July 6, 2006 hearing. If you are a person with a disabili comment or to attend the pu· rin, Ie Colombie at 793-1221. w 0 may need special accommodations in order to contact the Commission's Special Assistant Jody Published Date: May 28, 2006 AO # 02614037 AK Journal of Commerce Published Date: May 21, 2006 AO # 02614038 Peninsula Clarion Re: Public Notice . . Subject: Re: Public Notice From: D~nnis Caasi <dennis.caasi@alaskajournal.com> Date: Thu, 18 2006 14:34:11 -0800 Jody, Received 5/17/2006. Pub date: OS/28/06. Ad attached. Thanks, Dennis On 5/17/06 3:53 PM, "Jody Colombie" <jody colombie@admin.state.ak.us> wrote: Please publish 5/28/06. Thank you! Jody Colombie Content-Type: application/octet-stream AGOCC.pdf . Content-Encodmg: base64 1 of 1 5/18/20062:35 PM STATE OF ALASKA AFFIDAVIT OF PUBLAlaska Oil and Gas Conservation Commission Re: West McArthur River Unit A TT ACH FWest McArthur River Oil Pool 'ION HERE Application for Enhanced Recovery Operations (Pilot Waterflood Project) By application dated May 10, 2006, Forest Oil Corporation (Forest) as Unit Operator of the West McArthur River Unit re- quested the Commission to approve Enhanced Recovery Operations to authorize a pilot water- flood project in the West McArthur River Oil Pool. Forest proposes to inject water into an off- shore oil pool in the Hemlock forma- tion at a depth of 9,251 to 9,438 feet below sea level to improve oil recovery from this pool. The West McArthur River Oil Pool of the West McArthur River Unit lies within T8N-R14W Seward Merid- ian. The Commission has tentatively scheduled a public hearing on this ap- plication for July 6, 2006 at 9:00 am at the offices of 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 June 13, 2006. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if, the Commission will hold the public hearing, please call 793-1221 after June 21, 2006. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commis- sion at 333 West 7th Avenue, Suite 100; Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on June 30, 2006 ex- cept that if the Commission decides to hold a public hearing, protests or comments must be re- ceived no later than the conclusion of the July 6, 2006 hearing. If you are a person with a disability who may need special accommoda- tions in order to comment or to attend the public hear- ing, please contact the Commission's Special Assistant Jody Colombie at 793-1221. John K. Norman Chairman Pub Date: May 28, 2006 ôúrIÍàl o.fmerce Alaska Oil & Gas Conservation Commissio Public Notices FILE NO: Ad#: 00053101 UNITED STATES OF AMERICA, STATE OF ALASKA, THIRD DISTRICT BEFORE ME, THE UNDERSIGNED, A NOTARY PUBLIC THIS DAY PERSONALLY APPEARED Lara Bickford WHO, BEING FIRST DULY SWORN, ACCORDING TO THE LAW, SAYS THAT SHE IS THE Business Manager OF THE ALASKA JOURNAL OF COMMERCE PUBLISHED AT 301 ARTIC SLOPE AVENUE, SUITE 350, IN SAID THIRD DISTRICT AND STATE OF ALASKA AND THAT ADVERTISEMENT, OF WHICH THE ANNEXED IS A TRUE COPY, WHICH WAS PUBLISHED IN SAID PUBLICATION APPEARING ON THE OS/28/2006 28th DAY OF MAY 2006 AND THERE AFTER FOR 1 CONSECUTIVE WEEK(S) AND THE LAST PUBLICATION APPEARING ON OS/28/2006 28th DAY OF MAY 2006 I Lara Bickford Business Manager SUBSCRIBED AND SWORN BEFORE ME THIS 31st DAY OF May 2006 \ ~1 þ.l:.. "lS NOTARY PUBLIC STATE OF ALASKA MY COMMISSION EXPIRES 1/14/09 TRACV L. ALLISON NOTARY pU~Llq STATE OF ALAS MyComrh. expo 01/14109 . -'....._._-...,....,""-.'."'-_..'".,.,-'..-.~,.. .~ -.-. AGOCC 10#06-0751 Notice of Public Hearing 10#06-0751 02-902 (Rev. 3/94) PUbliShe.inal Copies: Department Fiscal, DepartmeeceiVing AO.FRM STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER ADVERTISING ORDER NO. F INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02614037 R o M AOGCC 333 West ih Avenue. Suite 100 A nrhm~ap A K QQ;;;O 1 907-793-1221 AGENCY CONTACT DATE OF A.O. DATES ADVERTISEMENT REQUIRED: T o Alaska Journal of Commerce 301 Arctic Slope Ave #350 Anchorage, AK 99514 May 28, 2006 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that helshe 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 2005, and thereafter for _ consecutive days, the last publication appearìng on the _ day of . 2005, 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 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM STATE OF ALASKA . NOTICE TO PUBLISHER . ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AO-02614038 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE ..v I ... F AOGCC AGENCY CONTACT DATE OF A.O. R 333 W 7th Ave, Ste 100 Jodv Colombie Mav 17 2006 0 Anchorage, AK 99501 PHONE PCN M - (<)07) 7Q1 _1')') 1 DATES ADVERTISEMENT REQUIRED: T Peninsula Clarion May 21,2006 0 Kenai, AK THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Advertisement to be published was e-mailed Type of Advertisement X Legal D Display D Classified DOther (Specify) SEE ATTACHED SENDINVOICEINTRIPuêATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF 51 TO AnchoraQ'e. AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 3 4 :"IN 4MOIINT ~v f".f". Pt::M If". 4f".f".T :"v NMR DIST UQ 1 05 02140100 73451 2 3 4 f\ í1 , REQUISITIONED BY: ( \ U ~ ItiV\UV IDIVISION APPROVAL: / '-..../ '-.. . . Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: West McArthur River Unit West McArthur River Oil Pool Application for Enhanced Recovery Operations (Pilot Waterflood Project) By application dated May 10, 2006, Forest Oil Corporation (Forest) as Unit Operator of the West McArthur River Unit requested the Commission to approve Enhanced Recovery Operations to authorize a pilot waterflood project in the West McArthur River Oil Pool. Forest proposes to inject water into an offshore oil pool in the Hemlock formation at a depth of9,251 to 9,438 feet below sea level to improve oil recovery from this pool. The West McArthur River Oil Pool of the West McArthur River Unit lies within T8N-RI4W Seward Meridian. The Commission has tentatively scheduled a public hearing on this application for July 6, 2006 at 9:00 am at the offices of 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 June 13,2006. If a request for a hearing is not timely filed, the Commission may consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after June 21, 2006. In addition, a person may submit a written protest or written comments regarding this application and proposal to the Alaska Oil and Gas Conservation Commission at 333 West ih A venue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on June 30, 2006 except that if the Commission decides to hold a public hearing, protests or comments must be received no later than the conclusion ofthe July 6, 2006 hearing. If you are a person with a disabili comment or to attend the p. rin, Ie Colombie at 793-1221. w 0 may need special accommodations in order to contact the Commission's Special Assistant Jody Published Date: May 28, 2006 AO # 02614037 AK Journal of Commerce Published Date: May 21, 2006 AO # 02614038 Peninsula Clarion . . PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, } STATE OF ALASKA ss: x ¡)--I/)./';;p/ R1Lê.-€. SUBSCRIBED AND SWORN to me before t~5th day of ~' 2006 l Jl)\i"-~~. {2J ~ 0 Q NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26-Aug-08 r - -- - -- ----- _...-IIiiiiiii-IiiiiiiI-....--.,- 1 Notice of Public He8rInt STATE OF ALASKA 1 Alaska Oil and GasCorÎServation Commission 1 Re: West McArthur River Unit 1 West McArthur River Oil Pool Application for Enhanced Recovery Operations (Pilot Waterfload Project) By application dated May 10, 2006, Forest Oil Corporation (Forest) as Unit Operator of the West McArthur River Unit requested the Commission to approve Enhanced Recovery Operations to author- ize a pilot waterflood project in the West McArthur River Oil Pool. Forest proposes to inject water into an offshore. oil pool in the Hemlock formation at al depth of 9,251 to 9,438 feet below sea level to improve oil recovery from this pool. The West 1 McArthur River Oil Pool of the West McArthur River 1 Unit lies within T8N-R14W Seward Meridian. 1 The Commission has tentatively scheduled a 1 publiè hearing on this application for July 6, 2006 at 1 9:00 am at the offices of the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, 1 Suite 100, Anchorage, Alaska 99501. A person 1 may request that the tentatively scheduled hearing 1 be held by filing a written request with the 1 Commission no . later than 4:30 pm on June 13, 2006. If a request for a hearing is not timely filed, the 1 Commission may consider the issuance of an order 1 without a hearing. To learn if the Commission will hold the public hearing, please call 793-1221 after June 21, 2006. In addition, a person may submit a written protest or written comments regarding this applica- tion and proposal to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Protests and comments must be received no later than 4:30 pm on June 30, 2006 except that if the Commission decides to hold a public hearing, protests or com- ments must be received no later than the conclu- sion of the July 6, 2006 hearing. If you are a person with a disability who may need special accommodations in order to èomment 1 ór to attend the public hearing, please contact the 1 Commission's Special Assistant Jody Colombie at 1 793-1221. 1 John K, Norman 1 Chairman L~~~~~~_____~~~~ being first duly sworn, on oath deposes and says: Denise Reece That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Public Hearing AO-026l4038 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: May 21,2006 STATE OF ALASKA ADVERTISING ORDER PUbliShe.inal Copies: Department Fiscal, DepartmeeceiVing NOTICE TO PUBLISHER AO.FRM 02-902 (Rev. 3/94) ADVERTISING ORDER NO. INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE AO-02614038 R o M AOGCC 333 West 7th Avenue. Suite 100 An('.hor~u~ AK QQ,\Ol 907-793-1221 AGENCY CONTACT DATE OF A.O. DATES ADVERTISEMENT REQUIRED: T o Peninsula Clarion May 21,2006 Kenai, AK THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: United states of America AFFIDAVIT OF PUBLICATION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that helshe 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 2005, and thereafter for _ consecutive days, the last publication appearing on the _ day of . 2005, 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 2005, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM WRMU Pilot EOR Public Notice . . Subject: WRMU Pilot EOR Public Notice From: J ody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 17 May 200615:51:51 -0800 To: undisclos 'ents:; BCC: Cyì1t . er <bren_mciver@admin.state.ak.us>, M z <robert_mi state.ak.us>, Christine Hansen <c.hansen@iogcc.s <hubbletl >, Sondra Stewman <StewmaSD@BP.com>, stanekj <s <ecolaw >, trmjrl <trmjrl@ao1.com>, shaneg <shan er <jdarlin . om>, nelson <knelson@petroleumnews.c cboddy <cboddy M alton@hdrinc.com annon Donnelly <shannon . Wester" <mark.p eper.org>, wdv <wdv@dnr.state.ak.us>, tjr <tjr jnels <mjnelson@purvingertz.com>, Charles 'Donne charles.o', m>, "Randy L. Skil .com>, "Deborah 1. Jone onesD6@BP.com>, "Steven R. Rossberg" <Ro S@ , Lois <I . keeper.org>, Dan Bross < k rg>, Gordon Pospisil < BP.com>, " Sommer" <SommerFS@ ik hultz <Mike1.Schultz@BP.com>, "Nick W. Glov GloverNW@BP.com> "D . Kleppin' leppiDE@BP.com>, "Janet D. att" <PlattJD@BP.com> "Rosanne J en" <Jaco s @BP.com>, ddonkel <ddonke mckay <mckay . et>, Barbara F Imer <barbara.f.fullmer@conocophillips >, <barker@usgs.g ,doug_schultze <doug_schultz xtoenergy.com>, Hank Al <hank.alford@e o· om>, Mark Kovac <ye l@gci. spfoff <gspfoff@a , Gregg Nady <gregg.nady@shell Steece <fred.stee sd.us>, rcrotty <rcrotty@ch2m.com>,jejones 0 orapower.com>, dapa <dapa@al t>, jroderick <jroderick@gci.net>, eyancy <eyancy@s .net>, "James M. Ruud" <james.m. ud@ . >, Brit Lively <ma et>, jah <jah@dnr.state.ak.us>, buonoje <bu anley <mark_hanl .com>,loren_leman <loren_l em Houle <julie_houle ak.us>, John W Katz <jwkatz@sso.org>, ,ta e unoca1.com>, Brady <brad ga.org>, Brian Havelock <beh@dnr.state.ak.us>, bpopp <bpopp@boro .ke· .us>, Jim White <jimwhite@satx.rr.com>, "John S. Haworth" <jo .haworth 0 l.c , marty <marty@rkindustria1.com>, ghammons <ghammons@ao1.com, clean < @pobox.a ska.net> 0 <mkm 7200 . com> , Brian espie <ifbmg@uaa.alaska.edu>, David L Boelens <d Todd Durk DURKEE .com>, Gary Schultz <gary_schultz nr. <RANCIER a>, don Gagnon <bgagnon brenala <pmwins , Saine Copeland <co bp.com>, Kristi <kristin_ , Kaynell Zeman <kjzem athonoi1.com>, John er <John. Tower a.d 0 ·11 Fowler <Bill_Fowler@ana arko.COM> tt Cranswick <scott.cranswick@mms.gov>, Brad McKim <mckimbs@BP.com>, Steve be <lambes@unoca1.co ·ack ell <jack.newell acsalaska.net>, James S <james.scherr@mms 7@conocop com, Tim Lawlor <Tim_ lor@ak.blm.gov>, Lynnda Kahn <Lynnd @fws , Je lefs <Jerry.C.Dethlefs@conocophillips.com>, crockett@aoga.org, T ra Sheffiel heffiel aoga.org>, Jon Gol @conocophillips.com>, Roger Belman <roger.belm phillips.com> 'ndy Lewis < e brenalaw.com>, Kari Moriarty <moriarty@aoga.org ro <palfaro oo.com>, Jeff <smet oca1.com>, Todd Kratz <ToddKratz@ .com>, Gary Rogers <gary_rogers .s ak.us>, Arthur Copoulos <Art opoulos@dnr.state~ >, Ken <ken@secorp-l e Lambert <salambert@unoca1.com>, Joe Nicks <news@radiokenai.com>, s>, Terrie Hubble a1.com>, ecolaw >, jdarlington .rr.com>, les Barker 10f2 5/17/20063:52 PM WRMU Pilot EOR Public Notice . . cheon <su < ak.net>, Iris a < Matthews legis. state <paul_decker@dnr.state:ak.us>, Rob Dragnich <rob. ragnich exxo Borough <adm' utianseast.org>, Marquerite kremer <marguerite Alicia Konsor _ onsor@dnr.state.ak.us>, Mike Mason <mike <gbrobinson@marathonoil.com>, Cammy Taylor <Camille _ Taylor@l <winton_aube in. te.ak.us>, Thomas E Maunder <tom_maun F Davies <ste s min.state.ak.us>, Keith Wiles <kwiles@m iIot EOR Public Notic 20f2 5/17/20063:52 PM Public Notice . . Subject: Public Notice From: Jody Colombie <jody _ colombie@admin.state.ak.us> Date: Wed, 17 May 2006 15:53:25 -0800 To: legal@alask:åjournal.co.rn, Please publish 5/28/06. Thank you! Jody Colombie Content-Type: application/msword AK Journal Ad Order form. doc Content-Encoding: base64 Content-Type: application/pdf iForest WRMU Pilot EOR Public Notice.pdf Content-Encoding: base64 1 of 1 5/17/2006 3 :54 PM Public Notice . . Subject: Public Notice From: Jody Colombie <jody_colombie@admin.state.ak.us> Date: Wed, 17 May 2006 15:54:29 -0800 To: Denise Reece <denise.reece@peninstllaclarion.com> Please publish 5/21/06. Content-Type: application/msword Peninsula Clarion Ad Order form.doc Content-Encoding: base64 Content-Type: application/msword WRMU Pilot EOR Public Notice.doc Content-Encoding: base64 1 of 1 5/17/20063:54 PM . Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 Boise,ID 83702 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, W A 98119-3960 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Darwin Waldsmith PO Box 39309 Ninilchick, AK 99639 Penny Vadla 399 West Riverview Avenue Soldotna, AK 99669-7714 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 James Gibbs PO Box 1597 Soldotna, AK 99669 Richard Wagner PO Box 60868 Fairbanks, AK 99706 North Slope Borough PO Box 69 Barrow, AK 99723 . Mona Dickens Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Schlumberger Drilling and Measurements 2525 Gambell Street #400 Anchorage, AK 99503 Ivan Gillian 9649 Musket Bell Cr.#5 Anchorage, AK 99507 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Cliff Burglin PO Box 70131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 ~1 @ . . Forest Oil Corporation 310 K Street, Suite 700 Anchorage, Alas/w. 99501 (907) 258-8600 Fax: (907) 258-8601 .. " May 10, 2006 John Norman, Chair State of Alaska Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Re: Application for Enhanced Recovery Pilot Proiect - West McArthur River Unit Dear Chairman Norman: Enclosed is Forest Oil Corporation's Application for an Enhanced Recovery Pilot Project for West McArthur River Unit. The application conforms to the regulations specified under the Alaska Administrative Code, Title 20 - Chapter 25, Article 05. More specifically the application conforms to the Enhanced Recovery Operations regulations specified by 20 AAC 25.402( c). Ifthere are any questions, please contact me at 868-2131. Sincerely, n 0-1'1 ."LÛ Jr~ '. µ~...r Paul M. Winslow Reservoir Engineer Forest Oil Corporation cc: Leonard C. Gurule, Senior V.P. - Forest Oil Corporation . . West McArthur River Unit Enhanced Recovery Operations (Pilot Waterflood Project) Application Forest Oil Corporation May 10, 2006 . . 20 AAC 25.402(c) Enhanced Recovery Operations Application 1) Location Plat Attachment 1 shows the location of all of the wells currently drilled on the West McArthur River Unit structure. A total of eleven (11) wells and/or sidetracks have been drilled by Stewart Petroleum Company and Forcenergy, Inc. (purchased by Forest Oil Corporation), on the West McArthur River Unit structure. Currently only three (3) wellbores are productive, WMRU #5, WMRU #6, and WMRU #7ST. In addition to the three producing wells, there are two (2) wellbores suspended (WMRU #IA and WMRU #2A), one (1) wellbore plugged back and being utilized as a disposal well (WMRU #4D), and five (5) wellbores abandoned (WMRU #1, WMRU #2, WMRU #3, WMRU #3ST, and WMRU #7). All eleven of these wellbores penetrated the Hemlock fonnation. In addition to the eleven wellbores drilled by Stewart Petroleum and Forcenergy, one (1) additional well, West Foreland Unit #2, was drilled and abandoned by Pan American Petroleum, in 1966. Note that the first Stewart Petroleum well (WMRU #1) was drilled in 1991, with first production starting in Dec. 1991 (first sustained production starting Aug. 1993). The oil accumulation on the West McArthur River Unit (WMRU) structure is located offshore in the Cook Inlet, primarily under Section 10, T8N, RI4W, Seward Meridian. All of the WMRU wells have been directionally drilled from two onshore pads, located in Section 16, T8N, RI4W, Seward Meridian. WMRU #2A is the proposed initial injection well for the Enhanced Recovery Pilot Project. WMRU #2A produced from the Hemlock fonnation from 10/93 until 1/02 (the wellbore has remained suspended since 1/02). WMRU #2A is the furthest down-dip well on the south side of the WMRU structure, and thus is a prime wellbore to initiate a pilot waterflood from. Injection into the Hemlock fonnation in the WMRU #2A wellbore is expected to increase the oil recovery from the remaining three producing wells. Note that the only non-abandoned wellbores within 1¡4 mile of the WMRU #2A wellbore are the WMRU #IA wellbore and the WMRU #7ST wellbore. The top Hemlock penetration point (and bottom hole location) for the WMRU #IA wellbore is considerably more than 1¡4 mile away fTom the WMRU #2A penetration point, but the actual wellbores may be within a 1¡4 mile radius of each other. In addition to the WMRU #IA and WMRU #7ST wellbores, the abandoned WMRU #1 original wellbore Hemlock penetration is also within 1¡4 mile of the proposed injection well (WMRU #2A). 2) Offset Surface Owners and Operators Forest Oil Corporation is the only operator within a 1¡4 mile radius of the proposed injection well, WMRU #2A (regarding both surface and bottom-hole locations). The surface location for the WMRU #2A well is on the western side of the Cook Inlet, in Section 16 - T8N, RI4W, Seward Meridian. SalamatofNative Association, Inc. is the owner of the surface estate regarding the surface location of the WMRU #2A well. The pad for the WMRU #2A well is within a 1¡4 mile radius of the 2 . . waters of the Cook Inlet. The waters of Cook Inlet within ~ mile of the WMRU #2A well pad are owned by the State of Alaska and managed by the Department of Natural Resources, Division of Mining, Land, & Water. The bottom hole location of the WMRU #2A well is located under these same waters of the Cook Inlet, owned by the State of Alaska, on State of Alaska oil and gas lease ADL-359111, which is managed by the Department of Natural Resources, Division of Oil and Gas. No other surface owners are within a ~ mile radius of the proposed injection well. 3) Affidavit Showing Notification of Other Operators and Surface Owners The affidavit accompanying this Enhanced Recovery Operations Application (Attachment 11) is provided to verify that a copy of this application has been sent to both the State of Alaska, the Department of Natural Resources, Division of Mining, Land, & Water (being the manager for the State of Alaska), and to Salamatof Native Association, Inc. (being the estate owner of the surface location of the WMRU #2A well). 4) Description of Operation for which Approval is being Requested The West McArthur River Unit (WMRU) presently consists of three (3) producing wells and two (2) suspended wells, all of which are completed in the Hemlock formation. It is being proposed to convert one of the suspended wells, WMRU #2A, to a Hemlock water injection well, for the purpose of enhanced oil recovery. WMRU #2A is located on the south side of the field and is the furthest down-dip well on the WMRU structure. Water injection into WMRU #2A should enhance the oil recovery ftom the remaining three producing wells (WMRU #5, #6, and #7ST). Depending upon the success of this Pilot Enhanced Recovery project, additional wells may be added, sidetracked, and/or re-completed as water injection wells to maximize the oil recovery ftom the Hemlock formation at West McArthur River Unit. Currently there are three producing wells at West McArthur River Unit, WMRU #5, WMRU #6, and WMRU #7ST. All three wells are being hydraulically lifted via the use of jet pmnps. The current daily production capacity ftom of these wells is approximately 1,270 bopd and 3,350 bwpd (when all three wells are producing). · WMRU #5 · WMRU #6 · WMRU #7ST · Total 660 bopd 510 bopd 100 bopd 1,270 bopd 900 bwpd 1,000 bwpd 1,450 bwpd 3,350 bwpd Due to limited water disposal capacity in WMRU #4D, WMRU #7ST is often shut-in due to its high water cut and relatively low oil production rate. Initiating water injection into WMRU #2A, will allow WMRU #7ST to be produced continuously. Upon initiation of injection, it is expected that all of the produced water ftom WMRU as well as additional AOGCC agreed upon altemative water sources (such as treated sanitary waste, gray water, produced Hemlock water ftom Redoubt Unit (RU), produced Tyonek water ftom West Foreland, and storm water ftom secondary containment 3 . . areas around the tank. farms at KPF and WMRU), will be injected into the Hemlock fonnation through the WMRU #2A wellbore. The total injection rate is estimated to be on the magnitude of 3,000 to 4,000 bwpd. As mentioned in the previous paragraph, the produced water at WMRU is currently being disposed of in the WMRU #4D disposal well. WMRU #4 was originally drilled into the Hemlock fonnation on the far south end of the WMRU structure. With the Hemlock being wet in that area, the well was subsequently plugged back, sidetracked, and completed in the Upper Tyonek fonnation, as a Class II disposal well. It should be pointed out that the disposal of produced water into the Tyonek fonnation (stratigraphically higher than the producing Hemlock fonnation) in WMRU #4D has absolutely no enhanced recovery effect on the oil production from WMRD. Commencing injection into the Hemlock fonnation in WMRU #2A is expected to enhance the oil recovery from the West McArthur River Unit. This application is requesting approval to initiate an enhanced recovery pilot project by injecting produced West McArthur River Unit water (as well as other AOGCC approved water sources) into the WMRU #2A well. 5) Pools to be Affected The West McArthur River Unit Hemlock oil pool is the only pool which will be effected by this proposed enhanced recovery project. Injection into WMRU #2A is expected to support pressure and enhance the oil recovery from WMRU #5, WMRU #6, and from WMRU #7ST. The nearest producing well to the proposed WMRU #2A injection well, is WMRU #7ST which is completed in the Hemlock fonnation from 9,257' - 9,398' SSTVD. WMRU #5 and WMRU #6 are both completed in the Hemlock fonnation as well, from 9,136' - 9,502' SSTVD and 9,120' - 9,549' SSTVD, respectively. WMRU #2A is currently completed in the Hemlock fonnation over the interval 9,251 '- 9,438' SSTVD, but is temporarily suspended. Note that a shale section which overlies the Hemlock fonnation at WMRU, will serve as a vertical seal, thus confining the injected fluids to the Hemlock fonnation. 6) Injection Formations The Hemlock fonnation is the only fonnation to have produced oil at West McArthur River Unit (WMRU) and is the proposed fonnation for this enhanced recovery operation. The description, depth, and thickness of the Hemlock fonnation at WMRU and the appropriate geologic data including overlying and underlying fonnations, are described below. Hemlock Description: The Hemlock fonnation is of Oligocene age and is the primary oil producing horizon in the Cook Inlet basin. The Hemlock is thought to have been deposited as an alluvial fan complex or series of alluvial fans sourced from the Northwest and West. Hemlock lithology in the vicinity of WMRU is 4 . . comprised primarily of conglomeratic sandstones grading from coarse to medium grained sandstones, fine grained siltstones, and stringers of impenneable carbonaceous siltstones further grading into thin low grade coal stringers. Hemlock oil production is primarily from the conglomerates, coarse and medium sandstones, and to some extent fine grained sandstones. Porosities in these zones range from lows of 4-6% in the fmer grained members, up to 12-18% in the well to moderately sorted gravel/pebble conglomerates and coarse moderately sorted sandstones composed of well rounded sediment. The Hemlock is a fairly homogeneous reservoir with good porosities, penneabilities and producing characteristics. Six distinct sub-units or benches are identifiable within the Hemlock fonnation at WMRU, grading from the coarse conglomerates down to very fine grained siltstones, carbonaceous claystones, and thin coals. The Hemlock in the vicinity ofWMRU is approximately 450' to 500' thick vertically grading up to approximately 600+' in thickness down dip and to the East in the vicinity of Redoubt Shoal and McArthur Riverffrading Bay Fields. The Hemlock unconfonnably overlies the West Foreland fonnation of Eocene Age. The West Foreland is composed primarily of polymicritic conglomerates, graywackies, and siltstones with some interbedded tuffs. The West Foreland fonnation was generally deposited in a lower energy depositional environment than either the Hemlock or Tyonek fonnations. Porosities and penneabilities within the upper portion of the West Foreland fonnation are generally poor. The Tyonek fonnation of Oligocene to Miocene age overlies the Hemlock fonnation. It was generally deposited in a higher energy fluvial dominated depositional environment than was the Hemlock or West Foreland fonnations. Stratigraphy of the Tyonek fonnation consists of conglomerates, subordinate sandstones, siltstones, and coals. Lithologies within the Tyonek fonnation are generally more unifonn that those of the Hemlock fonnation. Zones within the lower Tyonek exhibit an affinity for oil production whereas upper Tyonek members yield predominantly gas, where productive. Coal beds, carbonaceous claystones, and siltstones within the basal Tyonek are sufficient to provide an upward seal for the Hemlock producing intervals and to contain injected waters utilized in enhanced recovery operations. Both the West Foreland and Basal Tyonek fonnations provide an affective vertical seal (below and above, respectively) for the Hemlock fonnation, both in regards to oil production and water ~ection for enhanced oil recovery. Hemlock Reservoir Characterization: The Hemlock F onnation was deposited in a fluvial dominated environment of meandering low to moderate relief anastomosing streams, as alluvial fans prograded onto areas of low structural relief. The reservoir is generally fairly homogeneous both vertically and horizontally as interpreted from wire line logs. Channel sands are seen to stack and interbed with conglomerates, pebble/gravel conglomerates overbank and paludal deposits. Observed petrophysical properties within members of the Hemlock fonnation range from good porosity and penneability in the sands and conglomerates to very poor in the siltstone and carbonaceous claystone beds. These can have an effect on fluid flow within the reservoir. 5 . . 7) Logs of the Injection Well Logs for all of the West McArthur River Unit (WMRU) wells, including the proposed injection well (WMRU #2A), are already on file with the AOGCC. Included with this application (Attachment 2) is a log section of the Hemlock portion of the WMRU #2A wellbore, demonstrating correlative zones within the Hemlock formation. The Hemlock log section also demonstrates the presence of the six lithofacies observed to be present in the WMRU producing area. Also included (Attachment 3) is a diagrammatic cross section from Northwest to South showing the correlative nature of the zones within the Hemlock formation for the various WMRU wells. Shown on the field cross section are the perforated intervals within the Hemlock formation for each of the WMRU wells. 8) Casing Program and Mechanical Integrity Testing Attached are the current wellbore completion schematics for the proposed injection well, WMRU #2A (Attachment 4), as well as for WMRU #IA (Attachment 5) and WMRU #7ST (Attachment 6), which are the only other wellbores within 'l4 mile of the proposed injection well. All three wells were completed in and have produced from the Hemlock Formation. WMRU #7ST is currently producing from the Hemlock formation and WMRU #IA and #2A are shut-in (since January 2002). Once approval has been granted, WMRU #2A will be re-completed to allow injection into the Hemlock formation. WMRU #2A is currently completed as a jet pump producer. In order to convert this well in the most cost effective manner, Forest proposes that this conversion be performed without employing the use of a workover rig. The conversion involves the removal of the standing valve and insertion of a blanking sleeve across the jet pump cavity. This sleeve will be constructed to provide a seal between the tubing-casing annulus while allowing water to be injected through tubing into the existing perforations. A problem arises in performing the initial Mechanical Integrity Test (MIT) when utilizing this isolation sleeve. Below is a discussion of the problem and an alternative MIT procedure that Forest hopes will meet with Commission approval for testing this well. Discussion: Due to the manner in which the isolation sleeve must seat into the jet pump cavity the cross sectional area of the upper seals is larger than the cross sectional area of the lower seals. This will not affect the performance of the sleeve when pumping down the tubing in water injection mode. The pressure of the fluid will act on both seals but the upper seal having the greater surface area will act to push the seals tighter into their respective seats. During the initial MIT test (reverse pressure), the force of the fluid will act equally on both seals in the opposite direction. Since the cross sectional area of the top seal is greater than the cross sectional area of the bottom seal, there exists the tendency to pump the isolation sleeve off of its seat and back towards the surface. Consulting with the manufacturer of the isolation sleeve, revealed that this possibility exists when the pressure differential from casing to tubing is greater than 1,500 psi. (with the casing being higher). 6 . . After consulting 20 AAC 25.412 and applying the regulation to this well, it was determined that a conventional MIT would need to be conducted with a surface pressure on the casing of 2,244 psi (9- 5/8" casing shoe with a TVD of 8,977'), which is 744 psi greater than the manufacturers differential limitation. This condition exists during the initial MIT test, because no water would have been injected into the well and therefore there is no pressure on the tubing to offset this pressure differential. In subsequent years, as long as there is 744 psi on the tubing (which is likely), the MIT can be conducted in the conventional manner at a pressure of2,244 psi. Alternative Initial MIT Test: Forest offers an alternative initial MIT test procedure which will prove that the well has mechanical integrity and will thus allow for the utilization of the isolation sleeve. Forest proposes that before the standing valve is pulled, a bundle test be performed according to the following procedure to demonstrate that the mechanical integrity of the casing is intact and that the packer is not leaking. 1. Attach a chart recorder to the annulus of the well. 2. With the standing valve in place, pressure up the tubing and the casing together to 2,300 psi. 3. Shut in the tubing and casing valves on the well and monitor the chart recorder for 30 minutes. A pressure decline of less than 10 percent (230 psi.) within the 30 minute interval would indicate a good test. Annular Pressure Monitoring: After the sleeve has been installed and injection commenced, Forest will monitor the casing tubing annulus pressure on a daily basis. Any increases in pressure will be reported to Forest's Anchorage Office and subsequently the AOGCC will be notified. Injection Zone Containment: The casing and cementing procedure used to complete the WMRU #2A wellbore should minimize the chance of injected fluids migrating upwards out of the Hemlock formation. Due to the high angle of this well (greater than 68 degrees) slickline and/or wireline work may be problematic. Once injection has commenced, Forest will attempt to run a temperature survey via slickline or electric line (with the aid of a tractor). If Forest is unsuccessful in getting the logging tool to depth using wireline, it may be necessary to convey the tool using coiled tubing. Due to the high cost of mobilizing and using a coiled tubing unit (CTU), Forest would propose that future temperature surveys would be run only in conjunction with other CTU work done by Forest on the west side ofthe Cook Inlet. 9) Type of Fluid to be Injected The primary fluid that will be injected into the Hemlock formation via the WMRU #2A wellbore, will be the produced Hemlock water fÌom WMRU #5, WMRU #6, and WMRU #7ST. In addition to the produced water fÌom WMRU, Forest Oil Corporation is seeking permission to inject the following waste streams in its WMRU Pilot Enhanced Oil Recovery project: . . · Osprey platfonn deck drainage · Osprey platfonn gray water (showers, sinks, laundry, etc.), · Osprey platfonn treated sanitary waste, · Produced Hemlock water from Redoubt Unit (RU), · Produced Tyonek water from West Foreland, · Stonn water from secondary containment areas around the tank farm at KPF, and · Stonn water from secondary containment areas around the tank farm at WMRU. Note that all of these fluid sources have been approved by the AOGCC for injection into the Redoubt Unit Hemlock Enhanced Recovery Pilot Injection program. Laboratory testing and fluid compatibility studies showed no compatibility issues between any of these fluid sources. Attachments 7 and 8 are the fluid analyses and fluid compatibility studies, respectively, that were conducted by BJ Services for the RU Enhanced Oil Recovery application. It is also worthy to note that the injection at Redoubt has experienced no adverse effects from adding small quantities of the above fluids to the bulk matrix of RU Hemlock produced water. The fluid compatibility study indicates that there will be no adverse effect with the WMRU Hemlock water as well. Currently, the three producing wells at WMRU, produce approximately 3,350 bwpd. It is anticipated that all of this water and possibly minor amounts of the secondary fluids listed above, will be re- injected into the Hemlock fonnation through the WMRU #2A wellbore. Although this injection will not quite match the reservoir off-take, it is expected to help minimize the reservoir pressure depletion and is expected to enhance the aerial sweep efficiency of the Hemlock oil production. As further discussed in section 14 to follow, the historical production and reservoir pressure data, suggests that some degree of a natural water drive exists at WMRU. This natural aquifer support combined with the proposed injection into WMRU #2A will defInitely help sustain the reservoir pressure and increase the ultimate recovery. 10) Injection Pressure The Hemlock fracture gradient at West McArthur River Unit is not empirically known. Fracture gradients for other Hemlock reservoirs throughout the Cook Inlet, range from as low as 0.75 to as high as 1.2 psi/ft. The closest Cook Inlet fIeld with oil production from, and water injection into, the Hemlock fonnation is the McArthur River Field (Trading Bay Unit). Hemlock fracture gradients at McArthur River Field range from 0.8 to 0.9 psi/ft. Assuming an average fracture gradient of 0.85 psi/ft and an average reservoir injection depth of 9,250' TVD, the maximum allowable surface injection pressure to avoid fracturing the Hemlock fonnation is approximately 3,830 psi (0.85 psi/ft x 9,250' - 0.436 psi/ft Hemlock water hydrostatic gradient x 9,250'). This maximum allowable surface injection pressure does not take into account tubing friction pressure loss. It is estimated that tubing friction pressure loss for an injection rate of 3,500 bwpd, will be on the order of 600 psi, thus raising the maximum surface injection pressure to 4,430 psi. 8 . . 11) Protection of Freshwater Strata The casing and cementing program practiced at West McArthur River Unit ensures that no injected water will be able to migrate above the Hemlock fonnation to contact any freshwater strata near the surface. All WMRU wells, including WMRU #2A (which is the proposed injection well), have intennediate casing set at or just above the top of the Hemlock Fonnation. This intennediate casing is cemented to isolate any upward movement of fluids on the back-side of the casing. Prior to drilling out the plug and drilling through the Hemlock fonnation, the cement is pressure tested. Once the Hemlock fonnation has been drilled through, a casing liner is hung and cemented across the entire Hemlock fonnation. Cement bond logs have been run in all of the WMRU wells and copies have previously been sent to the AOGCC. Even though the casing and cementing practice at WMRU is such to minimize the chance of any injected fluids migrating above the Hemlock fonnation, periodic temperature surveys will be conducted to monitor the injected fluids. Note that due to the high angle of the WMRU #2A wellbore (greater than 68 degrees), temperature surveys may need to be done using a coiled tubing unit (CTU). If a coiled tubing unit is necessary, these surveys will be coordinated with other CTU work being done by Forest on the West side of the Cook Inlet. Finally, salinity analysis for the nearby WMRU #4D disposal well indicates that waters containing greater than 10,000 ppm total sodium chloride extend well above the Hemlock fonnation, to a depth of approximately 5,000' SSTVD. Note that the Hemlock datum in the West McArthur River Unit is at a depth of 9,200' SSTVD. 12) Water Analysis Water analyses of the produced water from WMRU are attached to this application (page 9 of Attachment 7, as well as Attachments 9 & 10). The following table summarizes the analyses that have been conducted on the produced water. West McArthur River Unit Produced Water Analyses Sample Water Na K Ca Mg Ba Fe B CI HC03 S04 TDS Well Date Point Cut (mg/I) (mg/I) (mgll) (mg/I) (mg/I) (mg/I) (mg/I) (mg/I) (mg/I) (mg/I) Obs. WMRU #6 28-Nov-01 Wellhead 8% 5,500 86 4700 34 8.7 7 8 16,000 617 --- 33,700 WMRU #6 28-Nov-01 Wellhead 8% 5,600 90 4800 34 8.8 3 13 15,700 675 --- 35,000 WMRU #5 & #6 1-Mar-05 Separator 54% 4,409 70 4812 364.5 < 25 < 0.5 15,963 817 36 26,472 Average: 5,170 82 4,771 144.17 8.75 5.0 10.5 15,888 703 36 31,724 Temp Resistivity Well Density ph (F) (ohms) WMRU #6 1.0150 6.49 WMRU #6 1.0160 6.62 WMRU #5 & #6 1.0205 6.98 68 0.254 Average: 1.0172 6.7 0.254 9 . . In addition to WMRU water analyses, Attachment 7 is the "Water Analysis for Injection Program" report done by BJ Services Company in March 2005. This report contains water analyses of the following list of sources, which have subsequently been approved for injection in the Hemlock reservoir at Redoubt Unit. · Osprey Deck Drainage (Attachment 7 - page 3) · Osprey Gray Water (Attachment 7 - page 4) · Osprey Sewer Fluid (Attachment 7 - page 5) · Kustatan Production Facility (KPF) Secondary Containment Water (Attachment 7 - page 6) · Redoubt Unit #5A Produced Water (Attachment 7 - page 7) · WMRU Secondary Containment Water (Attachment 7 - page 8) · WMRU Produced Water (Attachment 7 - page 9) A second phase to the fluid compatibility study performed for the Redoubt Unit injection, was to test the compatibility of all the fluids listed above. Attachment 8 is the fluid compatibility report published by BJ Services Company in April 2005, which found no adverse interaction between any of these fluid sources. 13) Freshwater Exemptions There are currently no freshwater aquifer exemptions within the West McArthur River Unit. There is however a Disposal Injection Order (DIO 16.000) allowing the injection of Class IT fluids into the WMRU #4D wellbore. Note that the WMRU #4D disposal well is more than one mile from the proposed Hemlock injection well (WMRU #2A), and is completed in the Tyonek formation from 5,108' TVD to 5,461' TVD. Also note that the Hemlock formation itself is not a freshwater strata, so a freshwater aquifer exemption should not be an issue. 14) Expected Incremental Increase in Ultimate Hydrocarbon Recovery The crude oil being produced at West McArthur River Unit has an API gravity of27.7 degrees, a gas- oil-ratio (GOR) of approximately 235 SCF/STB, and a bubble point pressure of approximately 1,400 psia. Initial reservoir pressure at WMRU was approximately 4,095 psia at a datum depth of 9,200' SSTVD. Recovery under primary depletion of this relatively dead oil, is estimated to be about 4.5% of the original oil-in-place (OOlP), from initial pressure down to the bubble point. Based upon the current structural interpretation and the original petrophysical analyses, the original oil in place (OOlP) in West McArthur River Unit is estimated to range from 30 to 36 MMbbls of oil. Assuming a 4.5% recovery down to the bubble point pressure, the primary recovery is expected to be approximately 1.4 to 1.6 MMbbls. As of 4/30/2006, WMRU has produced a cumulative oil volume of 11.1 MMbbls. This produced volume equates to 31% to 37% of the OOIP, depending upon the OOIP estimate. Considering the 10 . . current recovery and noting that the reservoir pressure is still above the oil bubble point, it is appears that WMRU is experiencing some degree of aquifer support. The extent and magnitude of this aquifer support is not known. By injecting water into WMRU #2A and initiating a pilot waterflood in the Hemlock formation at WMRU, it is hoped to further support the reservoir pressure and increase the aerial sweep efficiency, thus increasing the overall EUR :trom the West McArthur River Unit. Other Hemlock reservoirs in the Cook Inlet with mature water floods have achieved recoveries to date of as much as 42% of the OOIP. The pilot project of converting WMRU #2A to an injection well is being proposed to start gathering data on the responsiveness of the Hemlock formation at WMRU, to waterflood. 15) Well Status (Mechanical) There are two wellbores that have penetrated the Hemlock formation within ~ mile of the proposed injection well, WMRU #2A. The first well, WMRU #7ST, is currently producing :trom the Hemlock formation and the second well, WMRU #lA, has been shut-in (temporarily suspended) since January 2002. Both wellbores have 7-5/8" casing set at the top of the Hemlock formation, with production liners across the Hemlock formation. The production liner in the WMRU #IA wellbore is a cemented 5-112" liner with perforations :trom 13,572' to 13,844' MD. The liner in the WMRU #7ST wellbore is a 4-112" slotted production liner across the entire Hemlock interval. Note that the casing and tubing status of each wellbore has previously been supplied to the AOGCC via the "Well Completion or Recompletion Report and Log" (form 10-407). 11 . . List of Attachments: Attachment 1: West McArthur River Unit - Top Hemlock Structure Map Attachment 2: WMRU #2A Hemlock Fm - Log Section Attachment 3: WMRU Wells (Hemlock Fm) - Cross Section Attachment 4: WMRU #2A Wellbore Schematic Attachment 5: WMRU #IA Wellbore Schematic Attachment 6: WMRU #7A Wellbore Schematic Attachment 7: BJ Services Company - Water Analysis for Injection Program Attachment 8: BJ Services Company - Redoubt Fluid Compatibility Study Attachment 9: WMRU #6 Water Analysis - Sample 1 Attachment 10: WMRU #6 Water Analysis - Sample 2 Attachment 11: Affidavit of Jim Arlington 12 . . CONFIDENTIAL . . CONFIDENTIAL Attachment 4 Forest Oil Co WMRU # Date: 5-5-2006 Date Drilled: 1-29-1993 Date Original Completion: 6-7-1993 Date Sidetracked: 6-8-1993 Date Sidetrack Completion: 10-26-1993 KB (Kelly Bushing): 163' Tubing: 3.5", L-80', 9.3# @ 12,445' Jet Pump: Jet Pump set @ 12,317'-12,344' Packer: Packer Set @ 12,415' MD Tailpipe with entry guide bottom @ 12,445' ration 30" 304.72#, X-52 @117' " 133#, J-55 @ 2,190' 3" 3/8 68#, N-80 @ 6,429' 95/8" 47 & 53.5 #, NT-95/L-80 @ 11,380' r~..;. ~~&. /<.; '4f!ß. /<"; -,,"!t. /<"; .<J. ".b. ".; 4~&. ~~ 7 5/8" 29#, NT -95 @ 11,027' -12,981' Perforations 12,480'-12,550' 12,482'-12,438' 12,620'-12,820' 12,900'-12,961' 12,961'-13,050' 13,178'-13,190' JSPF 12 (sqz'd wI 41 Bbls Cmf) 12 04 06 10 (sqz'd wI 41 Bbls Cmt) PBro 13,093' Sqz'd wI 9 Bbls Cmt 'if 0.."; 5 1/2" 17#, 190 @ 12,839' TOl 1 3,449 . Attachment 5 . WMRU #lA Redrill Completion Diagram 12/29/95 20"@2201' J 13-3/8" @ 6211' Whipstock/Bridge Plug at 10,228' Bridge Plug @ 10,384' 7-5/8" liner top @ 11,130' 9-5/8" @ 11,502' Calcualted TOe @ 12,801' EZSV Ret @ 13,064'.MD Prod Perfs @ 13,184'-13,217' 13,254'-13,364' MD EZSV Ret @ 13,382' MD Sqz. Perfs @ 13,392'-13,397' and 13;407'-13,409' EZSV Ret @ 13,417' MD Sqz. Perfs @ 13,421'-13,423' EZSV Ret @ 13,426' MD Orig PBTD @ 13,696' 7-5/8" @ 13,742' L Top of 7-5/8" liner at 10,031' Top Window at 10,214' 3-112" tubing to surface Top of 5-112" liner@ 13,348' 3-1/2" PBR @ 13,371' 7-5/8" liner @ 13,456' 2-7/8" tbg Perfs (Guns left in hole) 13,572'-13,582' 13,628'-13,844' 5-112" Liner @ 14,200' . . Attachment 6 West McArthur River Unit #7 A Completion 20" 129#, X-56 Driven Conductor 120' MO - 120'1VD 133/8" 68#, L-80 BTC Surface Casing 17 1/2" Hole 1,987' MD - 1,967' TVD 95/8" 47#, L-80 BTC Intermediate Casing 12 1/4" Hole 6,536' MD - 5,064' TVD 75/8" 29.7#, L-80 Hy 521 Intermediate Liner 8112"HoIe Trico JetPump - 12,724' MD Baker Model S-3 Packer - 12,792' MO LinerTop-12,811' MD 12,946' MD - 9,420' lVO 4 112" 12.6#, L-80 1ST Slotted Production Liner 6 3/4" Hole 14,273' MD - 9,561'lVD . . ~ BJ SERVICES COMPANY PACIFIC REGION TECHNOLOGY CENTER REPORT PREPARED FOR: PAUL WINSLOW FOREST OIL COPR. ALASKA MARCH 1, 2005 Attachment 7 . BJ SERVICES LABORATORY REPORT #STM050228A MARCH 1, 2005 . PAGE 2 ~ SCOPE AND PURPOSE Seven different water samples from various locations were submitted for analysis to determine their compositions. The project was initiated in order to comply with state regulations for an upcoming injection program. The samples were submitted by Paul Winslow of Forest Oil and assigned BJ Services laboratory sample number STM050228A. The results are documented below and on the page that follows. Water Analysis Results Water analysis results from the water are attached at the end of this report. The samples will be retained for further testing for incompatibilities when mixed at different ratios. Laboratory Report No.: STM050228A Reported by: Matthew Kedzierski Requested by: Jay Garner Location: Alaska Analyzed by: Matthew Kedzierski, Chris Jamison Data Integration: Matthew Kedzierski Distribution: Jay Garner, Region file, Lab copies The above data is supplied solely for informational purposes and BJ Services Company makes no guarantees or warranties. either expressed or implied. with respect to the accuracy or use of this data. All product warranties and guarantees shall be governed by the standard contract terms at the time of sale. Attachment 7 BJ SERVICES lABORATORY REPORT #STM05022BA MARCH 1, 2005 PAGE 3 B J Services Water Analysis D~e: Y1ro5 Company: Forest Oil Lease: State: Alaska Analyst: C. Jamison pH: Specific Gravity: 6,21 1 .001 0 CATiONS Sodium (calc.) Calcium Magnesium Barium Potassium Iron 712 16.84 11.7 < 25 59.4 < .5 ANIONS Chloride Sulfate Carbonate Bicarbonate 1183.2 < 20 < 1 63.4 Total Dissolved Solids(calc.) Total Hardness as CaC03 Resistivity (ohm-meters--calc.) 2.423938 Scale Index: CaC03 SI == -2.54 CaS04 %KCI (based on potassium) Stiff Plot 05 04 03 02 01 00 01 Sample #: Well#: County: Date: H20 type: STM050217 A Osprey Deck Temp (F): mg!1 me!1 ppm 31.0 711 0.8 16.83 1.0 11.7 1.5 59.3 33.4 1182.0 1.0 2047 90.1 1.8 SI == #VALUE! 0.0 02 03 04 Na & K Ca Mg Attachment 7 68 63.4 2045 90,0 05 CI HC03 804 BJ SERVICES lABORATORY REPORT #STM050228A MARCH 1, 2005 PAGE 4 J Services Water Analysis D~e: ~1m5 Company: Forest Oil Lease: State: Alaska Analyst: C. Jamison pH: Specific Gravity: 6.32 1.0000 CATIONS Sodium (calc.) Calcium Magnesium Barium Potassium Iron -215 24.86 19.9 32 461.1 1.4 ANIONS Chloride Sulfate Carbonate Bicarbonate 61.2 15 < 1 229.4 Total Dissolved Solids(calc.) Total Hardness as CaC03 144.1 Resistivity (ohm-meters--calc.) #NUM! Scale Index: CaC03 SI=-1.43 CaS04 %KCI (based on potassium) Stiff Plot 05 04 03 02 01 00 01 Sample #: Well#: County: Date: H20 type: STM050217A Osprey 9-Feb Gray Water Temp (F): 68 mg/l mell ppm -9.3 -215 1.2 24.86 1.6 19.9 0.5 32 11.8 461.1 0.0 1.4 1.7 0.3 61.2 15 3.8 229.4 630 630 2.9 144.1 SI = -3.46 0.1 02 04 05 03 Na& K Ca Mg CI HC03 804 Attachment 7 ^~ ^~""-,~"" BJ SERVICES LABORATORY REPORT #STM05022BA MARCH 1, 2005 PAGE 5 J Services Water Analysis D~e: ~1m5 Company: Forest Oil Lease: State: Alaska Analyst: C. Jamison pH: Specific Gravity: 7.40 1.0020 CATIONS mg/l Sodium (calc.) Calcium Magnesium Barium Potassium Iron 457 60.15 32.1 < 25 65.6 <.5 ANIONS Chloride Sulfate Carbonate Bicarbonate 316.2 74 < 1 1024.8 Total Dissolved Solids(calc.) 2030 Total Hardness as CaC03 282.3 Resistivity (ohm-meters--calc.) 3.854787 Scale Index: CaC03 SI = 0.58 CaS04 %KCI (based on potassium) 0.0 Stiff Plot 05 04 03 02 01 00 01 Sample #: Well#: County: Date: H20 type: STM050217A Osprey Sewer (F): 68 mell ppm 19.9 456 3.0 60.03 2.6 32.0 1.7 65.4 8.9 1.5 315.6 74 16.8 1022.8 2025 5.6 281.7 SI = -2.46 02 03 04 05 Na & K Ca Mg Attachment 7 BJ SERVICES lABORATORY REPORT #STM050228A MARCH 1, 2005 PAGE 6 B J Services Water Analysis Date: Company: Lease: State: Analyst: 3/1/05 Forest Oil Sample #: Well#: County: Date: H20 type: STM050228A KPF Alaska M. Kedzierski pH: Specific Gravity: 5.96 1.0015 9-Feb Secondary Containment Temp (F): 68 CATIONS mg/l mell ppm 18 0.8 18 <.5 < .5 <: 25 < 10 <.5 Sodium (calc.) Calcium Magnesium Barium Potassium Iron ANIONS Chloride Sulfate Carbonate Bicarbonate 10.2 < 20 < 1 29.3 0.3 10.2 0.5 29.2 Total Dissolved Solids(calc.) 57 57 Total Hardness as CaC03 0.0 0.0 0.0 Resistivity (ohm-meters--calc.) 18.73702 Scale Index: CaC03 SI = #V ALUE! CaS04 SI = #VALUE! %KCI (based on potassium) #VALUE! Stiff Plot 05 04 03 02 01 00 01 02 03 04 05 Na& K Ca Mg CI HC03 804 Attachment 7 BJ SERVICES lABORATORY REPORT #STM050228A MARCH 1, 2005 PAGE 1 J Services Water Analysis D~e: Y1ffiS Company: Forest Oil Lease: State: Alaska Analyst: M. Kedzierski Specific Gravity: 6.50 1.0090 CATIONS Sodium (calc.) Calcium Magnesium Barium Potassium Iron 3500 1379.44 34.0 < 25 53.5 2.0 ANIONS Chloride Sulfate Carbonate Bicarbonate 7344.0 35 < 1 1098.0 Total Dissolved Solids( calc.) 13446 Total Hardness as CaC03 3584.9 Resistivity (ohm-meters--calc.) 0.508522 Scale Index: CaC03 SI == 0.47 CaS04 %KCI (based on potassium) Stiff Plot Sample #: Well#: County: Depth: H20 type: STM050228A RU-5 Produced from KPF Temp (F): mg/l mell ppm 152.2 3468 68.8 1367.14 2.8 33.7 1.4 53.1 0.1 2.0 207.2 0.7 7278.5 35 18.0 1088.2 13326 71.6 3552.9 SI == -1.82 0.0 10 09 08 07 06 05 04 03 02 01 00 01 02 03 04 05 Na& K Ca Mg Attachment 7 69 CI HC03 804 BJ SERVICES lABORATORY REPORT #STM050228A MARCH 1, 2005 PAGE 8 J Services Water Analysis Date: Company: Lease: State: Analyst: 3/1/05 Forest Oil Sample #: Well#: County: Depth: H20 type: STM050228A WMRU Alaska M. Kedzierski pH: Specific Gravity: 5.96 1.0020 Secondary Containment Temp (F): 68 CATIONS mgll mell ppm 14 0.6 14 < .5 <.5 < 25 < 10 < .5 Sodium (calc.) Calcium Magnesium Barium Potassium Iron ANIONS Chloride Sulfate Carbonate Bicarbonate 10.2 < 20 < 1 19.5 0.3 10.2 0.3 19.5 Total Dissolved Solids(calc.) 44 44 Total Hardness as CaC03 0.0 0.0 0.0 Resistivity (ohm-meters--calc.) 20.14507 Scale Index: CaC03 SI = #V ALUE! CaS04 SI = #VALUE! %KCI (based on potassium) #VALUE! Stiff Plot 05 04 03 02 01 00 01 02 03 04 05 Na& K Ca Mg CI HC03 804 Attachment 7 BJ SERVICES lABORATORY REPORT #STM050228A MARCH 1, 2005 PAGE 9 B J Services Water Analysis D~e: ~1m5 Company: Forest Oil Lease: State: Alaska Analyst: M. Kedzierski Specific Gravity: 6.98 1.0205 CATIONS mg/l Sodium (calc.) Calcium Magnesium Barium Potassium Iron 4409 4812.00 364.5 < 25 69.9 <.5 ANIONS Chloride Sulfate Carbonate Bicarbonate 15963.0 36 < 1 817.4 Total Dissolved Solids(calc.) 26472 Total Hardness as CaC03 13517.5 Resistivity (ohm-meters--calc.) 0.254269 Scale Index: CaC03 SI=1.08 CaS04 'YoKCI (based on potassium) 0.0 Stiff Plot 05 04 03 02 01 00 01 Sample #: STM050228A Well #: WMRU County: Depth: H20 type: Produced Temp (F): 68 mell ppm 191.8 4321 240.1 4715.34 30.0 357.2 1.8 68.4 450.3 15642.3 0.8 35 13.4 801.0 25940 270.1 13246.0 SI = -1.45 02 03 04 05 Na& K Ca Mg CI HC03 804 Attachment 7 . . ~ BJ SERVICES COMPANY PACIFIC REGION TECHNOLOGY CENTER REPORT PREPARED FOR: PAUL WINSLOW FOREST OIL COPR. ALASKA APRIL 21, 2005 Attachment 8 . BJ SERVICES LABORATORY REPORT #STM050419A APRIL 21, 2005 . PAGE 2 ~ SCOPE AND PURPOSE Seven different water samples from various locations were submitted for analysis to determine if there would be any precipitation when various mixtures of the waters were made. The project was initiated in order to comply with state regulations for an upcoming injection program. The samples were submitted by Paul Winslow of Forest Oil and assigned BJ Services laboratory sample number STM050419A. The results are documented below and on the page that follows. Compatibility Study Results 1. The mixtures presented below were made using water samples that were received in February 2005. 2. The samples were mixed and placed in a 180°F water bath for a period of 48 hours. 9.5ml Osprey Gray water/490.5 ml RU Produced Water 1.8 ml Osprey sewer fluid/498.2 ml RU Produced Water 4.3 ml Osprey Deck Fluid/495.7 ml RU Produced Water 5.0 ml KPF berm fluid/495 ml RU Produced Water 4.7 ml WMRU berm fluid/495.3 ml RU Produced Fluid 250 ml WMRU Produced Water/250 ml RU Produced Water 0.94%Gray Water/0.18% Sewage Water/0.42% Deck Water/0.49% KPF berm/0.46% WMRU berm/48.76% WMRU Produced Water/48.76% RU Produced Water No Precipitation Detected No Precipitation Detected No Precipitation Detected No Precipitation Detected No Precipitation Detected No Precipitation Detected No Precipitation Detected Laboratory Report No.: STM050419A Reported by: Matthew Kedzierski Requested by: Location: Analyzed by: Data Integration: Distribution: Jay Garner Anchorage, Alaska Matthew Kedzierski Matthew Kedzierski Jay Garner, Region file, Lab copies Attachment 8 ~ . BJ SERVICES lABORATORY REPORT #STM050419A APRil 21, 2005 . PAGE 3 WJ The above data is supplied solely for informational purposes and BJ Services Company makes no guarantees or warranties, either expressed or implied, with respect to the accuracy or use of this data. All product warranties and guarantees shall be governed by the standard contract terms at the time of sale. Attachment 8 '\ . Attachment 9 . Tulare (357-15R) Elk Hills Field Field Kem County, Califomia . CorE!! LaI:Ï FOREST OIL CORP. WMRU #6 Water Sample West McArthur River Unit Alaska CL File No. 57111 - 2001-029-FO Water Compositional Analysis - Sample 1 5 Gallons received by Corelab Bakersfield on December 6th 2001 Two Water Samples Picked up in Anchorage November 28th 2001 - with no markings Dissolved Solids Cations Anions mg/I me/I mg/I me/I Sodium, Na 5500 239.2 Chloride, CI 16000 451.3 Potassium, K 86 2.20 Bicarbonate, HC03 617 10.1 Calcium, Ca 4700 234.5 Carbonate, C03 none detected N/A Magnesium, Mg 34 2.80 Sulfate, S04 none detected N/A Barium, Ba 8.7 0.06 Bromide, Br - N/A Iron, Fe (Total) 7 0.24 Iodide, I - N/A Boron, B 8 0.71 Sulfide, S - N/A TOTAL SUSPENDED OIL (and Grease) = none noted Other Properties pH Value 6.49 Specific Gravity gm/cc (ASTM-D1429) 1.0150 Total Dissolved Solids, ppm 33700 PENCOR Reservoir Fluid Specialists An ISO 9002 Certified Company info@pencor-group.com· (800) 234-4205 Report No. Preliminary 27587 Project Manager: Ross Coleman 11/ 5/3/2006, pg 1 of 1 .. . . Attachment 10 . Tulare (357-15R) Elk Hills Field Field Kern County, California . ÛJre LaI:Ì FOREST OIL CORP. WMRU #6 Water Sample West McArthur River Unit Alaska CL File No. 57111 - 2001-029-FO Water Compositional Analysis - Sample 2 5 Gallons received by Corelab Bakersfield on December 6th 2001 Two Water Samples Picked up in Anchorage November 28th 2001 - with no markings Dissolved Solids Cations Anions mg/I me/I mg/I me/I Sodium, Na 5600 243.6 Chloride, CI 15700 442.8 Potassium, K 90 2.30 Bicarbonate, HC03 675 11.1 Calcium, Ca 4800 239.5 Carbonate, C03 none detected N/A Magnesium, Mg 34 2.80 Sulfate, S04 none detected N/A Barium, Ba 8.8 0.06 Bromide, Br - N/A Iron, Fe (Total) 3 0.12 Iodide, I - N/A Boron, B 13 1.20 Sulfide, S - N/A TOTAL SUSPENDED OIL (and Grease) = none noted Other Properties pH Value 6.62 Specific Gravity gm/cc (ASTM-D1429) 1.0160 Total Dissolved Solids, ppm 35000 PENCOR Reservoir Fluid Specialists An ISO 9002 Certified Company info@pencor-group.com· (800) 234-4205 Report No. Preliminary 27587 Project Manager: Ross Coleman 11/ 5/3/2006, pg 1 of 1 .. () ,~ . . Attachment 11 TO THE ALASKA OIL AND GAS CONSERVATION COMMISSION Before the Alaska Oil and Gas Conservation Commission ) In the Matter of the Application of ) Forest Oil Corporation for Injection ) For Enhanced Recovery Operations ) Subject to the provisions of 20 MC 25.402 ) ) VERIFICATION OF FACTS AND AFFIDAVIT OF JIM ARLINGTON Jim Arlington, being first duly sworn, upon oath, deposes and states as follows: 1. My name is JIM ARLINGTON. I am over 19 years old and have personal knowledge of the matters set forth herein. 2. I am the Land Manager for the well operator, Forest Oil Corporation ("Forest"). 3. I am acquainted with the facts associated with the application of Forest Oil Corporation for an application for injection for enhanced recovery operations pursuant to the provisions of 20 MC 25.402 as they pertain to the proposed enhanced recovery operation involving water injection in the West McArthur River Unit (WMRU) #2A well. 4. The only surface owners within a one-quarter mile radius of either the surface location of the WMRU #2A well, or the bottom hole location of the WMRU #2A well are the State of Alaska and Salamatof Native Association, Inc... To the best of my knowledge the surface owner of the lands on which the bottom hole of the WMRU #2A well is located is the State of Alaska which lands are managed by the Department of Natural Resources, Division of Mining, Land & Water. 5. Forest is the only operator of any wells within a one-quarter mile radius of either the surface location of the WMRU #2A well, or the bottom hole location of the WMRU #2A well. 6. On May 10, 2006, pursuant to 20 MC 25.402 (c), Forest sent a copy of its application for injection by United States mail to the State of Alaska, the Department of Natural Resources, Division of Mining, Land & Water at 550 W. 7th Avenue, Suite 1070, Anchorage, Alaska 99501 and to the Business Manager, Salamatof Native Association, Inc, at 110 Willow Street, Suite 105, Kenai, Alaska 99611. Subscribed and sworn to on May /Oi!:2006. STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) On this ð~ day of May 2006, before me, the undersigned, a Notary Public duly commissioned and sworn, appeared Jim Arlington, personally known to me, to be the person whose name is subscribed to within the Verification of Facts and Affidavit. - - 4 "Notary Public Þ 4 . REBEKAH J. HAYNES Þ ~ '.. ,. State of Alaska Þ My Commission Expires Mar. 9, 201 0