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Home My WebLink AboutERIO 005 • • 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. E. 70 005 Order File Identifier Organizing (done) Two -sided III 111 I III ❑ Rescan Needed III 11111 I I III RE CAN DIGITAL DATA OVERSIZED (Scannable) Color Items: ❑ Diskettes, No. ❑ Maps: ❑ Greyscale Items: ❑ Other, No/Type: ❑ Other Items Scannable by a Large Scanner ❑ Poor Quality Originals: OVERSIZED (Non - Scannable) ❑ Other: ❑ Logs of various kinds: NOTES: ❑ Other:: BY: AD Date: 3 W /s /I Project Proofing II 0//111111 IIIU BY: Maria Date: 3 /q,(9,.. lsl ye Scanning Preparation x 30 = + = TOTAL PAGES " Lj f (Count does not include cover sheet) f BY: Maria Date: / 1 °.„ /s/ Production Scannin g II 1111111111 11111 Stage 1 Page Count from Scanned File: 4J (Count does include cov r sheet) Pa se Count Matches Number in Scanning Preparation: YES NO BY: Date:46 Ii P— /s/ 1/1/1f) ' 1 r Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Scanning is complete at this point unless rescanning is required. 1111 1 111 ReScanned 1 1/1111111 IIM BY: Maria Date: /s/ Comments about this file: Quality Checked III IIIII IIHII 111 1/17/2012 Orders File Cover Page.doc • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF CONOCOPHILLIPS ) Docket ERIO -11 -001 ALASKA, INC. for an order authorizing a pilot ) Enhanced Recovery Injection Order No. 5 project injecting carbon dioxide gas and nitrogen gas ) Prudhoe Bay Unit to test the potential for recovery of methane from gas ) Ignik Sikumi No. 1 hydrates in the "Upper C Sands" of the ) Sagavanirktok Formation Sagavanirktok Formation, Prudhoe Bay Unit, North ) Upper C Sands Slope, Alaska ) January 18, 2012 NOTICE CLOSING DOCKET BY THE COMMISSION: The Commission has the closed the Docket in the above captioned matter. ENTERED AND EFFECTIVE at Anchorage, Alaska and this 18th day of January, 2012. BY DIRECTION OF THE COMMISSION / f ( j A A Jo¢}l J. Colombie Spe ial Assistant to the Commission • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF CONOCOPHILLIPS ) Docket ERIO -11 -001 ALASKA, INC. for an order authorizing a pilot ) Enhanced Recovery Injection Order project injecting carbon dioxide gas and nitrogen gas ) No. 5 to test the potential for recovery of methane from gas ) hydrates in the "Upper C Sands" of the ) Prudhoe Bay Unit Sagavanirktok Formation, Prudhoe Bay Unit, North ) Ignik Sikumi No. 1 Slope, Alaska ) Sagavanirktok Formation ) Upper C Sands ) January 18, 2012 IT APPEARING THAT: 1. By letter and application dated October 14, 2011, ConocoPhillips Alaska, Inc. (CPAI), as operator of the Prudhoe Bay Unit Ignik Sikumi No. 1 exploratory well (Ignik Sikumi 1), requests an order from the Alaska Oil and Gas Conservation Commission (AOGCC) to authorize a pilot project injecting carbon dioxide gas (CO2) and nitrogen gas (N2) into the "Upper C Sands" of the Sagavanirktok Formation (Upper C Sands) to test the potential of methane gas production from gas hydrates. The process for which CPAI seeks approval utilizes a technology not proved feasible under the conditions in which it is being tested. The purpose of the project is to test the potential for gas recovery from the Upper C Sands. 2. Notice of opportunity for a public hearing was published in the Anchorage Daily News on October 24, 2011. The public hearing was tentatively scheduled for November 29, 2011. 3. No comments, protests or requests for public hearing were received. 4. Based upon information submitted by CPAI and matters in AOGCC files, the Commission has sufficient information to rule on the request. The public hearing tentatively scheduled for November 29, 2011 was vacated on November 17, 2011. FINDINGS: 1. Operator CPAI is the operator of the Ignik Sikumi 1 exploratory well, Prudhoe Bay Unit, North Slope, Alaska. 2. Project Location The surface location of the Ignik Sikumi 1 is 1858 feet from south section line (FSL), 2475 feet from west section line (FWL), Section 34, T12N, R11E, and a bottom hole location 1848 feet FSL, 2478 feet FWL, Section 34, T12N, R11E, Umiat Meridian. The surface and bottom hole locations are within the Prudhoe Bay Unit. s • ERIO5 January 18, 2012 Page 2 of 6 3. Notification of Operators and Surface Owners CPAI provided operators and surface owners within 1/4 mile of the proposed pilot project area with a copy of the application for injection. Affected operators and surface owners are BP Exploration (Alaska), Inc. and the State of Alaska Department of Natural Resources. 4. Description of Operation The Upper C Sands are potential gas hydrates reservoirs that may produce methane from naturally occurring, gas hydrate - saturated sandstone by the process of CO2 and N2 exchange, a technology that has not yet been proved feasible under these conditions. CPAI proposes to inject approximately 20 tons of CO2 mixed with N2 in order to test the potential for methane gas recovery from hydrate - saturated portions of the Upper C Sands. Injection will occur over a 10- to 14 -day period followed by drawdown and production. Produced fluids will be flowed through above - ground well testing equipment where the produced gas will be heated, separated and measured. Metering will include gas chromatographs and low -flow gas meters. 5. Geologic Information Injection will occur within the Upper C Sands between 2234' and 2273' MD (which is equivalent to -2150' to -2189' true vertical depth below sea level). The Upper C Sands consist of thick layers of very fine- to fine - grained, uncemented quartz sand interbedded with thinner layers of siltstone. Upper confinement for injected gases will be provided by overlying layers of siltstone and claystone and the bottom of the permafrost layer, which lies at about 1740' MD (equivalent to -1656' true vertical depth below sea level). 6. Well Logs Initial formation logs obtained while drilling Ignik Sikumi 1 and formation logs for all offset wells within 1 /4 mile of the proposed pilot project area are on file with the AOGCC. 7. Mechanical Integrity and Design of Injection Well Ignik Sikumi 1 was permitted as an exploratory well in accordance with regulation 20 AAC 25.005. The well was constructed according to regulations 20 AAC 25.030 and 20 AAC 25.412 with 10- surface casing set at 1473' measured depth (MD) and cemented to surface. A tapered 7 -5/8" x 4 - production casing was set at 2592' MD and also cemented to surface. A 4 - tubing string was set in the sealbore at 1986' MD, and the tubing and inner annulus were successfully pressure tested to 3000 psi. A cement evaluation log indicates that the 4 - portion of the tapered production casing is properly cemented. 8. Injection Rates, Pressures, and Fracture Propagation Fracture - stimulating the receiving formation is not planned, although it is possible that parting pressure may be exceeded when injection is initiated. Actual injection is intended at matrix rates, with an average surface pressure of about 800 psi and less than 1400 psi at the formation face. The well is equipped with real-time, down hole instrumentation to monitor operational parameters. ERIO 5 • • January 18, 2012 Page 3 of 6 9. Type of Fluid The fluid requested for injection is a mixed gas stream of CO2 and N2. Whether the mixed gas stream is absolutely compatible with the hydrate - bearing Upper C Sands is unknown and is to be investigated with the proposed project. 10. Freshwater Information Per Aquifer Exemption Order No. 1, all aquifers are exempted for Class II activities for at least a 1 /4 mile radius around Ignik Sikumi 1. Injection of CO2 or N2 will not occur within or above fresh water zones. 11. Expected Increase in Hydrocarbon Recovery Because this is a pilot project into a formation which has not yet produced, no incremental hydrocarbon recovery is associated with this proposed project. The project is intended to determine the viability of this type of injection to enhance recovery of methane gas. 12. Mechanical Condition of Adjacent Wells Six Prudhoe Bay Field wells operated by BP Exploration (Alaska), Inc. lie within the 1 /4 mile area of review for Ignik Sikumi 1. The Upper C Sands occur within the surface casing section of the wells. AOGCC records demonstrate that the Upper C Sands have been properly cemented in these wells. 13. Regulatory Authority Subparagraph (b) of regulation 20 AAC 25.450, Enhanced Recovery Operations, allows the AOGCC to authorize pilot projects using a technology not proved feasible under the conditions in which it is being tested, if the project will not resulting in an increased risk of fluid movement into freshwater sources. CONCLUSIONS: 1. The application requirements for regulation 20 AAC 22.402, Enhanced Recovery Operations, have been met. 2. As described, this pilot project meets the requirements regulation 20 AAC 25.450, Underground Injection Control Variances. 3. As constructed, Ignik Sikumi 1 will prevent the migration of fluids outside of the Upper C Sands. However, well integrity of Ignik Sikumi 1 must be demonstrated according to regulation 20 AAC 25.412(c). 4. Upper C Sands have been properly cemented in all wells within 1 /4 -mile of Ignik Sikumi 1. 5. All aquifers are exempted for Class II activities within the project area per AEO 1. 6. CPAI provided sufficient information to support an AOGCC decision authorizing CO2 and N2 injection into the Upper C Sands to evaluate in -situ gas -to -gas exchange as a potential method for producing methane from gas hydrates. • ERIO5 January 18, 2012 Page 4 of 6 7. Injection pressure will be monitored to evaluate fracture initiation, propagation and leak -off properties of the injected fluids. 8. Injected fluids will be confined within the appropriate receiving interval by impermeable lithology, cement isolation of the wellbore and appropriate operating conditions. 9. Well surveillance will help demonstrate the performance of the pilot injection project or disclose possible abnormalities. NOW, THERFORE, IT IS ORDERED: The underground injection of CO2 and N2 for the evaluation of methane production from gas hydrates is authorized in the Ignik Sikumi 1 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 12 months after its effective date unless an extension is approved according to Rule 11. RULE 2: Authorized injection Strata Injection into the Sagavanirktok "Upper C Sands" is authorized. The Sagavanirktok "Upper C Sands" gas hydrates is the accumulation that is common to the interval from 2234 to 2273 feet MD ( -2150 to -2189 feet SSTVD). RULE 3: Fluid Injection Well Well Ignik Sikumi 1 is the only well authorized for CO2 / N2 injection during this pilot project. RULE 4: Authorized Injection Fluid for Enhanced Recovery The pilot project involves injecting no more than 20 tons of mixed CO2 / N2 into the hydrate saturated Sagavanirktok "Upper C Sands" to validate laboratory experimental results supporting CO2 / CH4 (Methane) exchange. The injected CO2 / N2 mixture in a gas state will exchange with the methane and remain sequestered in the pre- existing hydrate lattice. RULE 5: Authorized Injection Pressure for Enhanced Recovery a. After injection is initiated, normal injection pressures must be maintained below the parting pressure of the interval b. Injection pressures must be maintained so that injected fluids do not fracture the confining zone or migrate out of the approved injection stratum. ERIO 5 • January 18, 2012 Page 5 of 6 RULE 6: Demonstration of Tubing / Casing Annulus Mechanical Integrity The mechanical integrity of the injection well must be demonstrated before injection begins, and before return the well to service following a workover affecting mechanical integrity. An AOGCC - witnessed mechanical integrity test must be preformed after injection is commenced for the first time in the well, to be scheduled when injection conditions (temperature, pressure, rate, etc.) have stabilized. Mechanical integrity must be demonstrated by a tubing/casing annulus pressure test using a minimum surface pressure of 1500 psi that shows stabilizing pressure and does not change more than 10 per cent during a 30- minute period. Results of mechanical integrity tests must be submitted to the AOGCC upon completion. RULE 7: Pilot Project Surveillance Information gathered from the pilot project, including injection pressures, tubing and casing annuli pressures, injection rates, volumes injected and produced back, and produced fluid analyses shall be collected and provided to the AOGCC. At the conclusion of this pilot ERIO project, a report shall be submitted to the AOGCC containing information regarding project parameters including but not limited to: a. Analysis of injection performance b. Analysis of any information (logs, pressure analyses, MITs, etc.) relating to confinement of injected fluids. c. Evaluation of fracture initiation or parting pressure, propagation, and leak -off properties of the pilot project. d. Review of any specialized tests performed to gauge the performance and results of the pilot project. RULE 8: Notification of Improper Class II Infection Sustained injection of fluids other than CO2 / N2 mixture is considered improper Class II injection. This does not include the completion fluid in the tubing, including diesel or methanol used for freeze protection and any fluids used to maintain well control. Upon discovery of an improper Class II injection, the operator must immediately suspend injection, notify the AOGCC, and provide details of the operation. Additional notification requirements of any other State or Federal agency remain the operator's responsibility. g Y p p tY . RULE 9: Well integrity 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 AOGCC and immediately shut in the well unless otherwise authorized by the AOGCC to continue operating the well ERIO5 January 18, 2012 Page 6 of 6 RULE 10: Other Conditions It is a condition of this authorization that the operator complies with all applicable AOGCC regulations. The AOGCC may suspend, revoke, or modify this authorization if injected fluids fail to be confined within the designated injection strata. RULE 11: Administrative Actions Unless notice and public hearing is otherwise required, the AOGCC may administratively 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. DONE at Anchorage, Alaska and dated January 18, 2012. 0.1 ,, OIL A,vo Alf/ o Daniel " . Seamount, Jr. o t , Chair, Commissioner ommi . ner m 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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 AOGCC 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 AOGCC 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 AOGCC mails, OR 30 days if the AOGCC 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 after the date on which the application for reconsideration was filed. If the AOGCC 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 AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. M provided in AS 31.05.080(b), "[t]he questions reviewed on appeal are limited to the questions presented to the AOGCC 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. 1110 4110 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.O. 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 a. Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK K 99723 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 Penny Vadla Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 \ j\,\\! '\\° • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Wednesday, January 18, 2012 3:27 PM To: '( michael .j.nelson @conocophillips.com); '(Von.L .Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker; 'Bowen Roberts'; 'Brandon Gagnon'; ' Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'caunderwood'; 'Chris Gay'; 'Claire Caldes'; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; Easton, John R (DNR); 'Elizabeth Bluemink'; 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laugh lin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com); 'Jeanne McPherren'; 'Jeff Jones'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov)'; 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Silliphant (laura.gregersen @alaska.gov); 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester'; 'Marguerite kremer (meg.kremer @alaska.gov)'; 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; '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; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Vanish'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford'; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa lmm'; 'Terrie Hubble'; 'Thor Cutler; 'Tim Mayers; 'Tina Grovier; 'Todd Durkee'; 'Tony Hopfinger; 'trmjrl'; 'Vicki Irwin'; 'Walter Feather ly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (DNR); 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig; 'Donna Vukich'; 'Eric Lidji'; 'Gary Orr; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lars Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill'; 'Maurizio Grandi'; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; 'Wayne Wooster 'Wendy Wollf; 'William Van Dyke'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); '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)'; Herrera, Matt F (DOA); 'Johnson, Elaine M (DOA) (elaine.johnson @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)'; 'Patadijczuk, 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)' Subject: erio 5 Prudhoe Bay Unit Attachments: erio 5.pdf 1 • • As En SEAN PARNELL, GOVERNOR O 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 5.001 Randall Kanady Drilling and Wells ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510 -0360 RE: Docket # ERIO -12 -001, Prudhoe Bay Unit, Ignik Sikumi No. 1 Well (PTD 211 -027), "Upper C Sands" of Saganivirktok Formation Dear Mr. Kanady: By email sent January 24, 2012, ConocoPhillips Alaska, Inc. (CPAI) requests the Alaska Oil and Gas Conservation Commission ( AOGCC) administratively amend the fluids authorized for injection under Enhanced Recovery Injection Order 5 (ERIO 5) to include two gas tracers to help evaluate the effectiveness of the pilot project authorized under ERIO 5. AOGCC hereby GRANTS CPAI's request. ERIO 5 was issued on January 18, 2012, and authorizes CPAI to conduct a pilot injection project to evaluate the potential of injecting a carbon dioxide /nitrogen (CO2/N2) gas mixture to recover methane gas from a hydrate accumulation. While the use of tracers was discussed during preliminary meetings about the scope of this pilot project they were inadvertently left out of the formal application for the project and subsequently not included as an authorized fluid under Rule 4 of ERIO 5. The specific tracers that CPAI requests authorization to inject as a part of this pilot project are sulfur hexafluoride (SF6) and 1,2- dichlorotetrafluoroethane (R -114). According to CPAI's request these substances were selected "...because they will be trapped in secondary hydrate formation, so their concentrations will help us manage our mass - balance calculations." CPAI proposes to inject 10 pounds of SF6 during the first half of the injection project and 10 pounds of R -114 during the second half of the injection project. The total mass of the CO2/N2 mixture to be injected is 20 tons, so the 20 total pounds of tracers injected would fall in the hundreds of parts per million range and thus would not be expected to pose any compatibility concerns. Adding these tracers to the CO2/N2 injection stream should allow the effectiveness of the project to be more easily evaluated. ERIO 5.001 • • February 1, 2012 Page 2 of 2 Per Rule 11 of ERIO 5, the AOGCC hereby amends Rule 4 of ERIO 5 to read as follows: RULE 4: Authorized Infection Fluid for Enhanced Recovery The pilot project involves injecting no more than 20 tons of mixed CO2 / N2, and no more than 10 pounds each of the tracer elements sulfur hexafluoride (SF6) and 1,2- dichlorotetrafluoroethane (R - 114), into the hydrate saturated Sagavanirktok "Upper C Sands" to validate laboratory experimental results supporting CO2 / CI-14 (Methane) exchange. The injected CO2 / N2 mixture in a gas state will exchange with the methane and remain sequestered in the pre- existing hydrate lattice. All other terms an it ca ditions of ERIO 5 remain unchanged and in full force and effect. 01L ANp DONE at A or,a:e laska and dated February 1, 2012. / .;) , _ 94, Ad Jo N I an Cathy r . Foerster rut • 4` .r Comm' loner Commissioner s�k ATION 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 AOGCC grants for good cause shown, a person affected by it may file with the AOGCC 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 AOGCC 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 AOGCC 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 AOGCC mails, OR 30 days if the AOGCC 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 after the date on which the application for reconsideration was filed. If the AOGCC 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 AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise 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 AOGCC 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. • • 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 408 18 Street President 6900 Arctic Blvd. Golden, CO 80401 -2433 P.O. Box 1655 Anchorage, AK 99502 Colorado Springs, CO 80901 Bernie Karl CIRI Baker Oil Tools K &K Recycling Inc. Land Department 795 E. 94 Ct. P.O. Box 58055 P.O. Box 93330 Anchorage, AK 99515 -4295 Fairbanks, AK 99711 Anchorage, AK 99503 North Slope Borough Richard Wagner Gordon Severson Planning Department P.O. Box 60868 3201 Westmar Circle P.O. Box 69 Fairbanks, AK 99706 Anchorage, AK 99508 -4336 Barrow, AK 99723 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 Penny Vadia Cliff Burglin 399 West Riverview Avenue 319 Charles Street Soldotna, AK 99669 -7714 Fairbanks, AK 99701 \ A ' (1J • • Fisher, Samantha J (DOA) From: Fisher, Samantha J (DOA) Sent: Wednesday, February 01, 2012 3:22 PM To: 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (DNR); 'CA Underwood'; 'Casey Sullivan'; 'Dale Hoffman'; 'David Lenig'; 'Donna Vukich'; 'Elizabeth Bluemink'; 'Eric Lidji'; 'Gary Orr'; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; 'Lois Epstein'; 'Marc Kuck'; 'Marie Steele'; 'Mary Aschoff; 'Matt Gill; 'Maurizio Grandi; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; 'Peter Contreras'; 'Richard Garrard'; 'Ryan Daniel'; 'Sandra Lemke'; 'Talib Syed'; 'Ted Rockwell'; 'Wayne y ne Wooster'; 'Wendy Wollf; 'William Van Dyke'; '( michael .j.nelson @conocophillips.com)'; '(Von.L. Hutchins @conocophillips.com)'; 'AKDCWelllntegrityCoordinator'; 'Alan Dennis'; 'alaska @petrocalc.com'; 'Anna Raff; 'Barbara F Fullmer'; 'bbritch'; 'Becky Bohrer'; 'Bill Penrose'; 'Bill Walker'; 'Bowen Roberts; 'Brandon Gagnon'; ' Brandow, Cande (ASRC Energy Services)'; 'Brian Havelock'; 'Bruce Webb'; 'Chris Gay'; 'Claire Caldes; 'Cliff Posey'; 'Crandall, Krissell'; 'D Lawrence'; 'dapa'; 'Daryl J. Kleppin'; 'Dave Harbour'; 'Dave Matthews'; 'David Boelens'; 'David House'; 'David Scott'; 'David Steingreaber'; 'ddonkel @cfl.rr.com'; 'Dennis Steffy; Easton, John R (DNR); 'Elowe, Kristin'; 'Erika Denman'; 'eyancy'; 'Francis S. Sommer'; 'Fred Steece'; 'Garland Robinson'; 'Gary Laughlin'; 'Gary Schultz (gary.schultz @alaska.gov)'; 'ghammons'; 'Gordon Pospisil'; 'Gorney, David L.'; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; 'gspfoff; 'Jdarlington (jarlington @gmail.com)'; 'Jeanne McPherren'; 'Jeff Jones'; 'Jeffery B. Jones (jeff.jones @alaska.gov)'; 'Jerry McCutcheon'; 'Jill Womack'; 'Jim White'; 'Jim Winegarner'; 'Joe Nicks'; 'John Garing'; 'John Katz (john.katz @alaska.gov); 'John S. Haworth'; 'John Spain'; 'John Tower; 'Jon Goltz'; Jones, Jeffrey L (GOV); 'Judy Stanek'; 'Julie Houle'; 'Kari Moriarty'; 'Kaynell Zeman'; 'Keith Wiles'; 'Kelly Sperback'; 'Kim Cunningham'; 'Larry Ostrovsky'; 'Laura Siliiphant (laura.gregersen @alaska.gov)'; 'Marc Kovak'; 'Mark Dalton'; 'Mark Hanley (mark.hanley @anadarko.com)'; 'Mark P. Worcester'; 'Marguerite kremer (meg.kremer @alaska.gov); 'Michael Dammeyer; 'Michael Jacobs'; 'Mike Bill'; 'Mike Mason'; 'Mike Morgan'; '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'; 'Randall Kanady'; 'Randy L. Skillern'; 'Rena Delbridge'; 'Renan Yanish'; ' rob.g.dragnich @exxonmobil.com'; 'Robert Brelsford; 'Robert Campbell'; 'Rudy Brueggeman'; 'Ryan Tunseth'; 'Scott Cranswick'; 'Scott Griffith'; 'Shannon Donnelly'; 'Sharmaine Copeland'; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); 'Sondra Stewman'; 'Steve Lambert'; 'Steve Moothart (steve.moothart@alaska.gov)'; 'Steven R. Rossberg'; 'Suzanne Gibson'; 'tablerk'; 'Tamera Sheffield'; Taylor, Cammy 0 (DNR); 'Temple Davidson'; 'Teresa Imm'; 'Terrie Hubble'; 'Thor Cutler; 'Tim Mayers'; 'Tina Grovier'; 'Todd Durkee'; 'Tony Hopfinger'; 'trmjrl'; 'Vicki Irwin; 'Walter Featherly'; 'Will Chinn'; Williamson, Mary J (DNR); 'Yereth Rosen'; Ballantine, Tab A (LAW); Bender, Makana K (DOA); '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) (Iou.grimaldi @alaska.gov); Herrera, Matt F (DOA); 'Johnson, Elaine M (DOA) (elaine.johnson @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)' Subject: erio5 -001 Prudhoe Bay Unit Attachments: erio5- 001.pdf 1 N 1 • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING OPLICA SH ADVTSING O., CERTIFIED A O- 02214009 AFFIDAVIT INV ICE MUST OF PUBLICATION BE IN TRI (PART TE 2 OF THIS FOR ER ) WITH ORDER ATTAC COPY OF I`1 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. October 21, 2011 R 333 W 7th Ave, Ste 100 Jody Colombie ° Anchorage, AK 99501 PHONE PCN M (9071 793 —1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News October 24, 2011 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g , ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEE ATTACHED SEND INVOICE IN TRIPLICATE AOGCC, 333 W. 7th Ave., Suite 100 PAGE 1 OF TOTAL OF TO Anchorage, AK 99501 2 PAGES ALL PAGES$ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LIS 1 10 02140100 73451 2 REQUI ITI NE0 -Y: DIVISION APPROVAL: 02 - 902 (Re /94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM 10/24/2011 RtCEIVED OCT 2 7 2011 ' Anchorage Daily News Also Oil Cons. Co i s Affidavit of Publication Anchorage 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER GRAND AD # DATE i� ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 TOTAL 947066 10/24/2011 AO -02114 STOF0330 $209.16 $209.16 $0.00 $0.00 $0.00 $209.16 Nc Hoartng Meal:8.011=46o Coaservatton Commiestoa Re: The application of.COnocoPhiilips Alask lnc STATE OF ALASKA PAD for an Enhanced Recovery injection error � CP e k Sikumi #1 gas 'hydrates well, Prudhoe Ray THIRD JUDICIAL DISTRICT Uni sorough,Alaska. Shane Drew, being first duly sworn on oath deposes and says de d s that CPAs i'n'a letter dated Actober 14, 2011 has g Y P Y requested an Enhanced Recovery injection Order he is an advertising representative of the Anchorage Daily News, tERi0) toin ctt02 142 into the Saavanirlkok a daily newspaper. C sandstone" gas Hydrates interval to test the resource potential of gas hydrates to the Prudhoe That said newspaper has been approved by the Third Judicial ta>:t North slope, Alaska. Court, Anchorage, Alaska, and it now and has been published in I The surface and Bottomhole locations of the well the English language continually as a daily newspaper in areas folio s: ' Anchorage, Alaska, and it is now and during all said time was Sikiimb# I s urface Location: 1858 FSL, 2475 FWL Section 34, printed in an office maintained at the aforesaid place of 12N, 811E u.Ni. • publication of said newspaper. That the annexed is a copy of an hole E cation: 1848 FSL, 2478 FWL Section . advertisement as it was published in regular issues (and not in 34, T12N, supplemental form) of said newspaper on the above dates and , The Commiksion has tentath+elyy st:heduied a is tJ iPPlicatiOn for November 29, i1 at that such newspaper was regularly distributed to its subscribers 1 . i J#an. �atrta Ala aka.Gil arid Gas 1 enervation during all of said period. That the full amount of the fee charged & mission, at 333 West 7th Avenue, Suite 100, for the foregoing publication is not in excess of the rate charged ase, Alaaisa 501. To request that the g g P � vsiysdhae_uuiad hearing tte held awritten private individuals. request ist be hied kv the mLSsion no later P thawalleoint. eneievemmcer 9, 2011. If a request for a hearing Is not timely filed, the Commission may consider the issuance of an order without hearing. To learn if the Commission will hold the hearing, call 793 -1221 after November 15, Signed r 2011.. - in addition, written comments regarding this Subscribed and sworn to me before this date: application ma be•submitted to the Alaska oil and Gas Conserva Commission, at 333 West 7th } �/ Avenue, en Suite tare Anchorage, f ed nO later an :30 .ht. r " ov ts mu 28 , 2011 except that if a he p is j / Corr held, comments must be received no rater than the conclusion of the November 29, 2011 hearing. If, because-of a.gisabillty, special acpommodadoons may be needed to comment or attend the hearing, Notary Public in and for the State of Alaska. contact the 793-1221, oGom r`i o Ia Special an Assistant, Third Division. Anchorage, Alaska 2011. � j �iei T. Seamount, Jr, MY COMMISSION EXPIRES: /LA,....../ 1 20 /5 PUbliShed October 24,12011 ... 5:43 i Vi m 1 St. rf crre 1t : , t,,, .": gym b ` 14 7 111s dis :; „ ° "` • STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE AFFIDAVIT MUST OF BEB IN PUBLICATION TRIPLICATE (PART SHOWING 2 OF THIS ADVERTISING FORM) WITH ORDER ATTACHED NO., COPY CERTIFIED OF M /L O_02214009 ORDER ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM FOR INVOICE ADDRESS F AOGCC AGENCY CONTACT DATE OF A.O. R 333 West 7 Avenue. Suite 100 Jodv Colombie October 21. 2011 o Anchorage_ AK 99501 PHONE PCN M (9071 793 -1221 DATES ADVERTISEMENT REQUIRED: o Anchorage Daily News October 24, 2011 PO Box 149001 Anchorage, AK 99514 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN g ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION United states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he /she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2010, and thereafter for consecutive days, the last publication appearing on the day of , 2010, 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 2010, Notary public for state of My commission expires • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, October 21, 2011 2:10 PM To: Ballantine, Tab A (LAW); Brooks, Phoebe; Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Fisher, Samantha J (DOA); Foerster, Catherine P (DOA); Fullom, Michael (DOA sponsored); Grimaldi, Louis R (DOA); Herrera, Matt F (DOA); Johnson, Elaine M (DOA); Jones, Jeffery B (DOA); Laasch, Linda K (DOA); Makana Bender; Matt Herrera; Maunder, Thomas E (DOA); McIver, Bren (DOA); McMains, Stephen E (DOA); Mumm, Joseph (DOA sponsored); 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); Schwartz, Guy L (DOA); Seamount, Dan T (DOA) Subject: FW: Public Hearing Notice Attachments: Ignik Sikumi #1 Public Notice.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793-122 I (phone) (907)276 -7542 (fay) 3 S • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, October 21, 2011 2:10 PM To: (michael.j.nelson @conocophillips.com); (Von. L. Hutchins @conocophillips.com); 'AKDCWelllntegrityCoordinator; Alan Dennis; alaska @petrocalc.com; Anna Raff; 'Barbara F Fullmer; bbritch; Becky Bohrer; Bill Penrose; Bill Walker; Bowen Roberts; Brandon Gagnon; Brandow, Cande (ASRC Energy Services); Brian Havelock; Bruce Webb; caunderwood; Chris Gay; 'Claire Caldes'; Cliff Posey; Crandall, Krissell; 'D Lawrence'; dapa; Daryl J. Kleppin; 'Dave Harbour; 'Dave Matthews'; David Boelens; David House; 'David Scott; David Steingreaber; 'ddonkel @cfl.rr.com'; 'Dennis Steffy'; 'Elizabeth Bluemink'; Elowe, Kristin; Erika Denman; eyancy; Francis S. Sommer; Fred Steece; Garland Robinson; Gary Laughlin; Gary Schultz (gary.schultz @alaska.gov); ghammons; Gordon Pospisil; Gorney, David L.; 'Greg Duggin'; 'Gregg Nady'; 'Gregory Geddes'; gspfoff; Jdarlington (jarlington @gmail.com); 'Jeanne McPherren'; Jeff Jones; Jeffery B. Jones (jeff.jones @alaska.gov); Jerry McCutcheon; Jill Womack; Jim White; Jim Winegarner; Joe Nicks; John Garing; John Katz (john.katz @alaska.gov); John S. Haworth; John Spain; John Tower; Jon Goltz; Jones, Jeffrey L (GOV); Judy Stanek; Julie Houle; Kari Moriarty; Kaynell Zeman; Keith Wiles; Kelly Sperback; 'Kim Cunningham'; Larry Ostrovsky; Laura Silliphant (laura.gregersen @alaska.gov); Marc Kovak; Mark Dalton; Mark Hanley (mark.hanley @anadarko.com); Mark P. Worcester; Marguerite kremer (meg.kremer @alaska.gov); 'Michael Dammeyer; Michael Jacobs; Mike Bill; Mike Mason; 'Mike Morgan'; Mike! 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'; Randall Kanady; Randy L. Skillern; 'Rena Delbridge'; 'Renan Yanish'; rob.g.dragnich @exxonmobil.com; 'Robert Brelsford'; Robert Campbell; 'Rudy Brueggeman'; 'Ryan Tunseth'; Scott Cranswick; 'Scott Griffith'; Shannon Donnelly; Sharmaine Copeland; Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Sondra Stewman; Steve Lambert; Steve Moothart (steve.moothart@alaska.gov); Steven R. Rossberg; 'Suzanne Gibson'; tablerk; Tamera Sheffield; Taylor, Cammy 0 (DNR); Temple Davidson; Teresa Imm; Terrie Hubble; Thor Cutler; 'Tim Mayers'; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Vicki Irwin; Walter Featherly; Will Chinn; Williamson, Mary J (DNR); Yereth Rosen Subject: FW: Public Hearing Notice Attachments: Ignik Sikumi #1 Public Notice.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 2 • • Colombie, Jody J (DOA) From: Colombie, Jody J (DOA) Sent: Friday, October 21, 2011 2:22 PM To: 'Aaron Gluzman'; 'Ben Greene'; Bruno, Jeff J (PCO); 'CA Underwood'; Casey Sullivan; 'Dale Hoffman'; David Lenig; 'Donna Vukich'; 'Elizabeth Bluemink'; Eric Lidji; Franger, James M (DNR); 'Gary Orr; 'Graham Smith'; Heusser, Heather A (DNR); 'Jason Bergerson'; 'Jill McLeod'; 'Joe Longo'; King, Kathleen J (DNR); 'Lara Coates'; Lois Epstein; Marc Kuck; 'Marie Steele'; 'Mary Aschoff'; 'Matt Gill'; Maurizio Grandi; Ostrovsky, Larry Z (DNR); 'Patricia Bettis'; Peter Contreras; Richard Garrard; 'Ryan Daniel'; 'Sandra Lemke'; Talib Syed; 'Ted Rockwell'; 'Wayne Wooster; 'Wendy Wollf; 'William Hutto'; 'William Van Dyke' Subject: FW: Public Hearing Notice Attachments: Ignik Sikumi #1 Public Notice.pdf Jody J. Colombie Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 (907)793 -1221 (phone) (907)276 -7542 (fax) 1 T • • RECEIVED Direid Schoderbek Directorr, , Gas Gas Hydrates CO 0 'l'' P. O. Conoco Phillips Alaska, Inc. PS ,� �� u C. P. O. Box 100036 360 Anchorage, Alaska 99510 -360 Alaska Oil & Gas Cats. GOfl1d hiSSi glephone:(907) 265 -6010 A1tClltlti david. a.schoderbek @conocophillips.com SENT VIA COURIER October 14, 2011 Alaska Oil and Gas Conservation Commission Attention: Dan Seamount, Commissioner 333 West 7 Avenue Anchorage, Alaska 99501 Re: AOGCC Application Enhanced Recovery Injection Order Ignik Sikumi #1 Gas Hydrates Project Prudhoe Bay Unit North Slope Borough, Alaska Mr. Seamount: Enclosed please find a copy of ConocoPhillips Alaska, Inc.'s (''CPAI') Application for Enhanced Recovery Injection Order for CPAI - Ignik Sikumi #1. By this application, CPAI seeks Alaska Oil and Gas Conservation Commission ("AOGCC') approval for injection of approximately 20 tons of CO Please feel free to contact me if you wish to discuss this application. Sincerely, David A Schoderbek Director, Gas Hydrates Enclosure 40 • Application to the Alaska Oil and Gas Conservation Commission for Approval of Pilot Injection in Ignik Sikumi #1 Gas Hydrate Well, Prudhoe Bay Unit ConocoPhillips Alaska, Inc October 14, 2011 Application to the AOGCC Approval of Gas Hydrate Well I Table of Contents Introduction 3 20 AAC 25.402 (c)(1) Plat of Wells Penetrating Injection Zone 3 20 AAC 25.402 (c)(2) Operators /Surface Owners within 1 /4 Mile of Injection Operations 3 20 AAC 25.402 (c)(3) Affidavit Regarding Notice to Operators and Surface Owners 4 20 AAC 25.402 (c)(4) Description of the Proposed Operation 5 20 AAC 25.402 (c)(5) Description and Depth of Pool to be Affected 6 20 AAC 25.402 (c)(6) Description of the Formation 8 20 AAC 25.402 (c)(7) Logs of the Injection Wells 10 20 AAC 25.402 (c)(8) Casing Description and Proposed Method for Testing 11 20 AAC 25.402 (c)(9) Injection Fluid Analysis and Injection Rates 12 20 AAC 25.402 (c)(10) Estimated Pressures 12 20 AAC 25.402 (c)(11) Fracture Information 12 20 AAC 25.402 (c)(12) Quality of Formation Water 14 20 AAC 25.402 (c)(13) Aquifer Exemption Reference 14 20 AAC 25.402 (c)(14) Incremental Hydrocarbon Recovery 14 20 AAC 25.402 (c)(15) Mechanical Condition of Wells Within % Mile 15 List of Figures Figure 1 Survey Plat of Ignik Sikumi #1 7 Figure 2: Sagavanirktok "Upper C" Sandstone Structure Map 9 Figure 3: Log Montage for Ignik Sikumi #1 10 Figure 4: Log Montage for PBU L -106 13 Figure 5: PBU L -Pad and CPAI - Ignik Sikumi #1 Icepad 15 Figure 6 1 /4 Mile Circle/Tangent With Existing Penetrations: Map View. 16 Figure 7 1 /4 Mile Circle/Tangent With Existing Penetrations: Isometric View 17 Figure 8 Ignik Sikumi #1 Wellbore Schematic 20 List of Tables Table 1 Ignik Sikumi #1 Coordinates 6 Table 2: Existing Penetrations Within 1 /4 Circle/Tangent of Ignik Sikumi #1 18 Table 3: Surface Casing Details within% Mile of Ignik Sikumi #1 19 Attachments Ignik Sikumi #1 Well Completion Report (AOGCC Form 10 -407) Page 2 ConocoPhillips Alaska, Inc. Application to the AOGCC •pproval of Gas Hydrate Well 40 Introduction This application to the Alaska Oil and Gas Conservation Commission (AOGCC) seeks endorsement and authorization for the Ignik Sikumi exploration gas hydrate well in the Prudhoe Bay Unit (PBU). This application for exploration gas hydrate well has been prepared in accordance with 20 AAC 25.402 (Enhanced Recovery Operations) and 20 AAC 25.460 (Area Injection Orders). This project involves injecting approximately 20 tons of CO2 into the gas hydrate zone 2243 -2273ft MD' (defined in section 20 AAC 25.402 (c)(5) Description and Depth of Pool to be Affected, pg. 8) in order to test feasibility of producing methane form naturally occurring gas hydrate- saturated sandstone by the process of CO2 exchange. 20 AAC 25.402 (c)(1) Plat of Wells Penetrating Injection Zone The attached map (Figure 2) shows the existing Ignik Sikumi #1 well penetrating the injection zone in the proposed pilot injection area. 20 AAC 25.402 (c)(2) Operators and Surface Owners within 1 /4 Mile of Injection Operations Operators: ConocoPhillips Alaska, Inc. Attention: Jarrot Handy, North Slope Operations and Development VP P. O. Box 100360 Anchorage, Alaska 99510 -0360 BP Exploration (Alaska), Inc Attention: Jeff Spatz, Joint Venture Manager for Operated Assets P.O. Box 196612 Anchorage, Alaska 99519 -6612 Surface Owners: State of Alaska Alaska Department of Natural Resources Division of Oil and Gas Attention: William Barron, Director 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501 Page 3 ConocoPhillips Alaska, Inc. Application to the AOGCC \pproval of Gas Hydrate Well • 20 AAC 25.402 (c)(3) Affidavit of David Schoderbek Regarding Notice to Operators and Surface Owners David A. Schoderbek, on oath, deposes and says: 1. I am the Gas Hydrates Project Manager for ConocoPhillips Alaska, Inc.. 2. On October 14, 2011, I caused copies of the Application for Approval of Injectivity Test for Methane Hydrates in the Prudhoe Bay Unit to be provided to the surface owner and operator of all land within a quarter mile of the proposed injection wells as listed below: a. BP Exploration (Alaska), Inc Attention: Jeff Spatz, Joint Venture Manager for Operated Assets P.O. Box 196612 Anchorage, Alaska 99519 -6612 b. Alaska Department of Natural Resources Division of Oil and Gas Attention: William Barron, Director 550 West 7th Avenue, Suite 800 Anchorage, Alaska 99501ADNR t O: ( 4)/0(s/a.-- David A. Schoderbek STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) SUBSCRIBED AND SWORN to before me this 14th day of October, 2011. ,5ig9474}`` °f. NOTARY PUBLIC IN AND FOR ALASKA ' • �� My Commission Expires: v - -r -2 I PUBLIC :*z. l/inntii111 Page 4 ConocoPhillips Alaska, Inc. Application to the AOGCC•Approval of Gas Hydrate Well S 20 AAC 25.402 (c)(4) Description of the Proposed Operation This application to the Alaska Oil and Gas Conservation Commission (AOGCC) seeks endorsement and authorization for the Ignik Sikumi # 1 proposed pilot CO2 injection project in the Prudhoe Bay Unit. Ignik Sikumi was drilled in winter 2011 on an ice pad located south of BP- operated PBU L -Pad under Permit to Drill (Number 211 -027), under Article 20 AAC 25.450 Section (a). The injection will not occur into, through, or above freshwater zones. Proposed Ignik Sikumi #1 perforations for injection are 2243ft -2273ft MD ( -215tft STVD to -2189ft SSTVD). This pilot project involves injecting 20 tons of CO mixed with N2 into the hydrate - saturated Sagavanirktok "Upper C Sand" to validate laboratory experimental results supporting CO2 /CH4 (methane) exchange. The injected CO2 /N2 mixture in a gas state will exchange with the methane and remain sequestered in the pre- existing hydrate lattice. Following a 10 -14 day injection period, draw down will commence and produced fluids, including methane, will be flowed through surface well testing equipment where the produced gas will be heated, separated and measured. Metering includes gas chromatographs and low -flow gas meters. Produced methane will be vented /flared onsite. Produced water will be sent to a nearby Class 2 disposal well. Depending on the outcome of the pilot CO2 injection, the future of the well includes a full abandonment of the wellbore and surface tree. Data gathered from the well test will be evaluated for process viability. No plans for future experimentation or commercial development exist at this time. • • Page 5 ConocoPhillips Alaska, Inc. Application to the AOGCC fpproval of Gas Hydrate Well • 20 AAC 25.402 (c)(5) Description and Depth of Pool to be Affected The Ignik Sikumi #1 injection project is a tract operation as defined in the Prudhoe Bay Unit Agreement. No pool exists for gas hydrates in the Sagavanirktok Formation. In the future if commercially exploitable hydrocarbons are identified, ConocoPhillips will work with Prudhoe Bay Unit operator and Working Interest Owners to determine the most appropriate means of exploitation, including the establishment of AOGCC pool rules with AOGCC and ADNR participating area. Table 1: Ignik Sikumi #1 coordinates (based on NAD 27 Alaska State Plane) Location at Surface I 1858ft FSL, 2475ft FWL, Sec 34, T12N, R11E, UM NAD 1927 RKB Elevation 83.6ft AMSL Northing: 5,977,590ft Easting: 584,119ft Pad Elevation 52.9ft AMSL Location at Top of Productive Interval 1850ft FSL, 2480ft FWL, Sec 34, T12N, R11E, UM NAD 1927 Measured Depth, RKB: 2,214' Northing: 5,977, 582ft Easting: 584,123ft Total Vertical Depth, RKB: 2,214' Total Vertical Depth, SS: - 2,130' Location at Total Depth I 1848ft FSL, 2478ft FWL, Sec 34, T12N, R11E, UM NAD 1927 Measured Depth, RKB: 2,597' Northing: 5,977,579ft Easting: 584,121ft Total Vertical Depth, RKB: 2,597' Total Vertical Depth, SS: - 2,513' Page 6 ConocoPhillips Alaska, Inc. . Application to the AOGCC•Approval of Gas Hydrate Well S REV DATE j DESCRIPTION CK APP DESCRON REVI DATE I BY CX I APP I DESCRIPTION 1 32 33 Pad 3' 3 5 N . Ti 2N • j T11 N ;,1 ; , ' • 7 r ''PROJECT Z i IS 3 • L —PAD E • SCALE: -i . 1 1' - 290' .__. � , .; .V 'Pa s a '1 v 9 .' 10 , 11 IGNIK SIKUMI [ , I ! °` LOCATED WITHIN PROTRACTED SEC 34, �'Ap VICINITY MAP 1 1 MILE T 12 N, R 11 E, UMIAT MERIDIAN 4e e£5S LAT = 70' 20' 54.352" /70 LONG = 149' 19' 12.722" Y i. 5,977,342.19' j X = 1,724,151.08' 1858' F.S.L., 2475' FM-L. GROUND ELEVATION = 49.0' 70 $ ICE PAD ELEVATION = 52.9' r `Lr , R o, 1a TOP OF CONDUCTOR ELEVATION = 54.2' 2475' ., / � t NOTES: I 159 ` ' ) I '= 1. CO ARE FROM MULTIPLE GPS R11< ' IGNIK SIKUMI . ~ '- OBSERVATIONS BASED ON L -PAD MONUMENTS . ICE PAD : ,,: SET BY BELL & ASSOCIATES ",. -.. 2. GRID COORDINATES ARE ASP, NA083. ZONE 4.' .`, -, ' ., _ \ 3. GEODETIC COORDINATES ARE NAD83. - 4. ELEVATIONS ARE B.P.M.S.L. - - a, • - - - —~S 1 1 5. ALL DISTANCES ARE TRUE. 1 I \\!,:„ ) \ LEGEND fY AS -BUILT CONDUCTOR LOCATION \ (This Survcy) I SeclIont \ I \ _ `+`l �iixr 4 .33;34 :. �..,dt t 40, t�� .. ,, .w:,,Y- t . . `5 1 C ; #�''' .' , ( �!i SURVEYOR'S CERTIFICATE t ., •”I' 49th i\ li / HEREBY CERTIFY THAT 1 AM PROPERLY REGISTERED AND LICENSED TO PRACTICE I " " - / S LAND SURVEYING IN THE STATE OF I BRIAN G. AMANGOLD / � � ALASKA AND THAT THIS PLAT REPRESENTS 70 ",, LS - 6626 A SURVEY DONE BY ME OR UNDER MY 4 #� *ii-SVI" ; "4 DIRECT SUPERVISION AND THAT ALL IAUWSBURY ItIl O::+ , � O 1 c� as D 21, on "�so 1 11.100111 V. AREA: MODULE: XION UNIT: Co oc h'II Jr' IGNIK SIKUMI EXPLORATORY WELL SITE Alaska, Inc. CONDUCTOR ASBUILT CADD FILE NO. 1 DRAIIANG NO. PART: REV: 11<6010757 3/23/11 1 NSK 6.O1 —d757 I 1 OF 1 I 1 • Figure 1: Survey Plat of Ignik Sikumi #1 Page 7 ConocoPhillips Alaska, Inc. Application to the AOGCC fpproval of Gas Hydrate Well • 20 AAC 25.402 (c)(6) Description of the Formation Sagavanirktok Formation The Tertiary Sagavanirktok Formation is a seaward - thickening clastic wedge deposited in response to erosion of the rising Brooks Range. Poorly consolidated sandstones, reflecting fluvial, marginal marine, and shallow marine depositional environments, prograded generally from southwest to northeast in response to orogenic pulses, unroofing, and eustatic sealevel changes. Siltstone and mudstone comprise the balance of the Sagavanirktok formation. Individual Sagavanirktok sandstones can be correlated confidently across distances of several miles; more laterally extensive sandstones extend across several townships. No Sagavanirktok cores have been recovered in the hydrate- bearing fault block, and sandstone properties have been calculated by log analysis: The hydrate- bearing injection target, the upper Sagavanirktok "C sandstone" has average hydrate saturation (SH of 75% and average water saturation (Sw of 25 %. Injection target is relatively clean (VciayAvg = 15 %) sandstone with average porosity over 35 %. Sagavanirktok "C Sandstone" structure elevation ranges from -2075 sstvd to -2220 sstvd in the hydrate - bearing fault block, based on nearly fifty L -pad well penetrations (Figure 2). Structural dips adjacent to Ignik Sikumi #1 average approximately 2° to the east. Page 8 ConocoPhillips Alaska, Inc. . Application to the AOGCC•Approval of Gas Hydrate Well II ____ ---- __---- ------------"." .,.-- r* .----"-1 _ ...- .-- - -- --- - p,...0.0.0 00..' ..".. '""".........,........„....... • VJZZ , ,..... _------- _.._--- ---- --' ..------, _- - - — - - -- - - __ - - -- --- . ""'. ' I ' • .„., --„ ••'''.- - - '''''' K „.■ 'L .....- ...'' .._ .... ... - . -- e .:,•• -.... ...• - - --- ....'"'''- ....„...... -- ,...,..- ''''''' .-''---- "* '-' "' - ' - '*■*... --• ■•• - •..'.... •-• .• ' r . F. 1 "-'.. V. C t • a i - ■ — . ■ --..... .....' . ••••••• ......-- ......... .........._■ .....• ■ ...," ''' '''•• . ."- - ..._, ...•-• -- r ..•-'- r'.... r." „..............e.........."..." _.-• .1. ' ...., / I, ...... .... ".. ... - .....1 ... ... ..., ■,. ■• .7 . :, ...,,..-• .' •,"---- ---..., e i 7_=.. - -- - t... I' '`... _..." .... ! ' ......_--:•-air -, 1 n.... , • ..--- -...,, . _ _•.-- , ....--- \ / / ..-- .,-- • i . ',... .... ...... _..... _..---- _- ---- ,..- -- ..--- ,, r ,--- --'!.. -• / / ./. - • , , .• ,.., 2 ,----1- ...."`' ..--- a0...g.°"...'. - / --- - ---- , „ ......, 7*. i ■,.. • 9 1 \ / - \ ___ _ = /• ,,,. , / • ______---`- _,---.-"""- _-..--- :m. / C, 4 __, ...,.......• ...".- ■••••■ 1 / •*'.. \ ''''.. ' It ' ''.-••■ / ,........,..,.-•,..... -....,..•••-• .....................-,............_ ., 4 ....., •••.•-••....-.-.. : • - ---,,..-- - ' ' - 7 / -- - ----- •/ i -',.'' `. . - r •., , ,...__,----- ,....../ i '‘,_ ,./ ---"-, '--..---. -"" ' 7 i i.,, . i ) Figure 2: Sagavanirktok "C" Sandstone Structure Map Page 9 ConocoPhillips Alaska, Inc. Application to the AOGCC fo pproval of Gas Hydrate Well • 20 AAC 25.402 (c)(7) Logs of the Injection Well: Figure 3 ConocoPhillips WELL NAME:IGNIK_SIKUMI_# 1 w . E A , H_2d'I GR AT2O OTCO g5'}{ " SH-OT 9:T_HOGI.ki 7 ATM DEPTH PHIT S. - -..A- 1- ..... KGLI _ H 5 &S_TOTALUWI vc cR G SH V iiittall rr ; � — sia�: �hi7 i"i'it "'� "�' 1)4 il .:.-:: : f' 1I I__IIIPi i1 i � c: viiiiiii , Ir...........____ _1 ..."... .."......;,...... f r7.7,_ ..__Au_ ill .,;i. 1 1 _______ : i k_ t ` i I k O%IIirii Q — .4., 0 ,...- * —■....m. li II IL4 I II Target: Upper C Sand iIi piro __ m)i _ iiiii _ ....... p ..,...,.... . _ _E , : : - .... '""" . II 1 .,_an: , Page 10 ConocoPhillips Alaska, Inc. Application to the AOGCCOApproval of Gas Hydrate Well 20 AAC 25.402 (c)(8) Casing Description and Proposed Method for Testing The proposed underground injection into the Gas Hydrate Well (undefined pool) will occur through the Ignik Sikumi #1 well permitted as an exploratory well in conformance with 20 AAC 25.005. Ignik Sikumi #1 wellbore schematic is included as Figure 8. Casing Description For proper anchorage, 16" conductor casing was drilled and cemented to 110' below pad. Cement returns to surface were verified by visual inspection. The 10 surface casing was set at +/ -1,473 feet true vertical and cemented with 43 bbls of cement back to surface. Prior to drilling out for the 9 %" production hole, 10 casing was pressure tested to 3200 psi for 30 minutes. The 9 %" hole was drilled to 1502' and a Teak -off test was performed with a leak -off of 12.7 ppg MWE. A 9Y8" production hole was drilled to 2597' and a tapered string of 4W X 7%" casing was run. The 4W casing was run from 2,592' to 1,974' and the 7 %" casing (with 18ft- long, 5°/2" seal bore element) was from 1,974' to surface. This casing was cemented to surface with 100 bbls cement recovered at surface. The tapered 4'/" casing was tested, along with the 4 ' /2" production tubing which was stabbed into a tie back receptacle, to 3000 psi which held for 30 minutes. The annular space between the 10 and 7 %" casings was then tested to 3000 psi for 30 minutes. Cement bond log was run and excellent bond was recorded through 4'/" casing. Tubing and packer were run to isolate pressure to the injection interval consistent with 20 AAC 25.412. Proposed Method for Testing Casing- tubing annulus pressures will be monitored and reported during injection operations in accordance with 20 AAC 25.402(e). Automated monitoring of injection rates, tubing and casing- tubing annulus pressures is planned. Prior to commencement of injection, the Ignik Sikumi #1 injection well was pressure tested in accordance with 20 AAC 25.412(c). Pressure observations indicate no communication or leakage of any tubing, casing, or packer. Wireline logs were run in 9 %" open hole as follows: Run #1: Gamma -ray, sonic scanner, resistivity scanner, formation imager, four -arm caliper, and gyro. Run #2: Magnetic resonance, platform express (density & neutron porosity), natural gamma -ray spectroscopy, and express pressure tool. Run #3: Modular formation dynamics tool (configured for mini -frac testing) Run #4: Modular formation dynamics tool (configured for mini -DST testing) Wireline logs were run in the 4'/2" cased -hole as follows: Run #1: Gamma - ray /cement bond log. Page 11 ConocoPhillips Alaska, Inc. Application to the AOGCC fopproval of Gas Hydrate Well 20 AAC 25.402 (c)(9) Injection Fluid Analysis and Injection Rates The fluid type to be injected is gaseous mixture of N2 and CO The source of the liquid CO2 is storage tanks and trucking from Fairbanks via AirLiquide to a CO2- approved ground vessel at the welisite. Nitrogen and carbon dioxide will be mixed on -site in a gas mixing skid. The maximum amount pumped daily will vary with formation permeability but 10 tons or 2356.2 gallons (56.1 barrels) is the maximum volume estimated. The gas is predicted to exchange with the methane molecules and stay in zone in the formation. Total proposed injection volume of N2 and CO is expected not to exceed approximately 20 tons. 20 AAC 25.402 (c)(10) Estimated Pressures As part of this pilot injection, wellhead and downhole pressures will be monitored in order to manage N2 -0O2 injection at rates in which the rock matrix will accept fluid without exceeding the strength of the rock. Treatment at higher rates, which cause greater downhole pressures, could initiate and propagate hydraulic fractures. It may be necessary, however, to briefly and temporarily inject above parting pressures. The estimated average surface injection pressure will be approximately 800 psi and injection designs do not exceed the maximum pressure of 1400 psi at the formation face. 20 AAC 25.402 (c)(11) Fracture Information The current plan does not include a hydraulic fracture treatment. The injection phase using N2 -0O2 on this well will be pumped at matrix rates below the fracture gradient of the formation. Interpretation of adjacent strata in nearby wells indicates that adequate zonal isolation is present between overlying permafrost, the targeted injection zone (Sagavanirktok "Upper C Sand "), and the underlying Ugnu formation. See figure 4, log montage from PBU L -106, with superimposed simplified Ignik Sikumi #1 wellbore schematic. Page 12 ConocoPhillips Alaska, Inc. Application to the AOGCC•A,pproval of Gas Hydrate Well S L-106 ce spsrt s -l... _ usi >rr n } W p�y� � . "- MITI sJ1YU ChR4A IMO 014 40;$ , Of44 0101,(03_6_I FEET RV r,N. FPD_4 S -f ' 10/"easingv_ -- Mid - ocene mudstone A_ , Mid Eocene Mudstone - Upper F sand: ice - bearing T._... 1... iiiiiiiiiiii--r- .. .. Lower F sand: ice- bearing Z1111 , , ... a." z ,.. E sand: hydrate - bearing 7'/e' x 4' /z" 1-20001__, crossover - A V D sand: hydrate- bearing . 11 r Upper C sand: hydrate- bearing Lower C sand: hydrate - bearing ;y „ 1 7 %'x4 % "csgat , i , ., i n wet "B sand" "' ° B sand: water saturated I nik Sikumi #1 _.,... schematic IfiI -' - :,. s i: _ _....„-, ..,. T--- -Y r a =A, — ' k 3000 3000 e. _01 s —i H } l4 -= ;1- E.......... -:a . t »_° -SEN.- -� Figure 4: Log Montage from PBU L - 106 Page 13 ConocoPhillips Alaska, Inc. Application to the AOGCC foOproval of Gas Hydrate Well • 20 AAC 25.402 (c)(12) Quality of Formation Water Sagavanirktok Formation No representative formation water has been produced from Sagavanirktok sandstones in the area targeted for N2 & CO2 injection. Petrophysical log analysis and interpretation indicates very small volume of water is "movable" in the target upper "C sand." Based on the "apparent water resistivity" (R log analysis technique, iterative reverse solution of the Archie Equation in underlying water - filled sandstone indicates water resistivity of 2.6 ohm -m, consistent with approximate formation water salinity of 5,000 ppm NaCI equivalent. 20 AAC 25.402 (c)(13) Aquifer Exemption Reference No underground sources of drinking water exist beneath the permafrost in the Ignik Sikumi #1 area. Section 34- T12N -R11 E is covered by AOGCC Aquifer Exemption Order No. 1 (July 11, 1986). 20 AAC 25.402 (c)(14) Incremental Hydrocarbon Recovery Impact on hydrocarbon recovery associated with the Ignik Sikumi #1 pilot injection is uncertain, but expected to be minimal. No offtake wells currently exist within the Sagavanirktok "Upper C Sand" reservoir. Page 14 ConocoPhillips Alaska, Inc. Application to the AOGCC .•Approval of Gas Hydrate Well • 20 AAC 25.402 (c)(15) Mechanical Condition of Wells Within 1 /4 Mile of Proposed Area Location was selected for Ignik Sikumi #1 near Prudhoe Bay Unit L -Pad but far enough from all existing penetrations through the hydrate- bearing Sagavanirktok strata to avoid any hydrate dissociation caused by historic production of hot (160°F) conventional fluids from wells currently producing (figure Q). Pre -drill reservoir modeling indicated that hydrate dissociation from hot historic production could be avoided by maintaining a 50- foot standoff from existing wells; Ignik Sikumi #1 site was chosen to triple this safety factor and maintain 150 -foot standoff from existing wells. Based on reservoir modeling integrating Ignik Sikumi #1 pe t rophysical interpretation, we believe that 20 tons (liquid) CO2 can will reach less than 15 feet into the Sagavanirktok "Upper C Sandstone. Six wells drilled from PBU L -Pad pass within 1 /4 mile of proposed Ignik Sikumi #1 injector (see figure R, S, & T). Inspection of cementing records for PBU L -01, PBU L -104, PBU L - PBU L -107, PBU L -204, & PBU L -213 confirms, as documented in Table B, that all six wells have cemented surface casing through the Sagavanirktok "Upper C Sand" proposed injection interval. ' , �� N 2 . x+ .v 'T " y F s '' �, sn r .. 4 s'. x,� r � � # m S � i n i ' yspy a e ; R : FAT q - i � � ,* € .. ti .$5' k ..� tr . Y E n�yt „T. 3*. a s . Sri ',' P,'. 1. �'y � _ .ry 1#' � "'° 7rt S = �` > �'i►p'� a. �'4�� ,.,:sF � �s ,. ' y '.� f 'c"" t''-' °'° ii--/ . .., „ , ` r s ..Sri' ,,,:z ,r fi N rj ,� i } ,*- �#. -, c , c- ' I a. X44 t � '. yr, fi . �r , .; 6U VP ..-±" � \ , . °qw" i1 -tlI b AC ...t Ignik Sikumi Ill O Figure 5: PBU L -Pad and CPAI - Ignik Sikumi #1 Icepad Page 15 ConocoPhillips Alaska, Inc. Project: Kuparuk River Unit i / �) M D ConocoPhill Site: Prudhoe Bay Unit Quarter Mile e -0 !" Well: Plan: Ignik bore: Ignik Sikmi ft1 (1320 feet) radius v • Well bore: K1 HALLIBURTON Plan: Ignik Sikumi C1 (wp01) (Plan: Ignik SikluniiI nik Sikurn $1) °"; r.r., - O 3i rry Drilling 3mste Laval. eo au . PKH- PI on 'P it ill CM(PYrrx , dd:', O M 1 Hurthre'A!P Y- 1 f 1t.el -}� FattTy4fP X ingl '• 611G F 0 Fij D rn - O 1250- — — i n fD 1000 _ - - �M��N� oh n .. r�ry'k 1;9 'ar get.l _ _. . " ® . - I- t l- mh. 7 . ' =mi.,. M Im.......11 < .) ,____, _, . _______ 1 , , 73 CO ID � � � � • - "Ilk 1 = 11 EIB I SA MI E Zii , .r.' 250 '�11�tN® ;�.�"_ _-mow �1� _ 7 G (Q _ I-- _ -._,1 ' i _ 56um1et .(wp01 }. _.. ,_.y _. - -63: IE. ' CD n -- - _ -- .__ — — - 10 �. -750 - — - — • ,1 (/) : _ : _. __ __ --__._i__._ Skl /il 5' ) l .^ i - -d• - tn M- � ,, -- - v WAIN l , , 5. 00 I ( I I I t 1 I - I II I t t I 1 I I I I I 11 I I r r r r ri i i t T rrT r1 r I - 1 ( i 1 r i 1 1 r -i 1 1 r5_ 1 1 1 1 1 1 1 I r r l I l i 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l i I 1 . • -1500 -1250 -1000 - 750 -500 -250 0 250 500 750 1000 1250 1500 ?750 2000 2250 2530 2753 3200 West(- )'East( +) (500 ft/in) I D Project: Kuparuk River Unit ^�'Q .. `' ' SD ConacoPhiIF S Prudhoe Bay Unit • `G n Well: Plan: Ignik Sikumi Wellbore: IerwkSikumi l (1320 feet) radius °'. O TI NALLIBURTON Pl.n: Ignik Sikumi «1 (wp01) (Plan: Ignik SlkumL1 lk Sikumi H) Plot (O spen y Drin1ny - . . ..r p ane , c VA galtort trwc.a FSV,ero> O _ �.,inry v ssni i �- t :41,1.16 m V 'NI > P UJ _. -,--..,_______' LEGEND 0 • i3 PBU: L -01, L -01, L -01 VO lir � ' -E}- PBU: L -104, L -104, L -104 V0 D -9- PBU: L -105, L -105, L -105 VO a -e-- PBU: L-107, L-107,1.-107 V0 O --I E-- PBU: L -204, L -204, L -204 VO tv -8- PBU: L -213, L -213. L -213 VO 0.) ! £ ■ Ignik Sikumi 41 (wp01) 0 fl) ^f (.0 :: . = S CD SU CD v x j ` ( \1O3/4" a • m (� 7 518 ". 9 518" V \I m 9518" '� . 7518" — C� ° , 10 3/4" o .=• 7 5!8" --- • n �({ 9 518" cii • Ignik Sikumi #1 (wp01) _ CP CD O r ` - • it • is Closest Approach: Reference Well: Ignik Sikuzni #1 (wp01) Plan Offset Well: L -107 D m 3- D stctr Hanzonta` Subsea Meas. Subsea CaoPds. - ASP View VS Meas. Subsea Coals. -ASP View VS N Distaase. Disurce Difre nc A}pM . IneL,Mgk TRVE Azi. TVD Pl+YS( - E( +)fW( -1 (0') Crawls Qerth Md. Angle TRUE Aol, ND N$.Y&; -1 E( +VW.-) f0) AT EU POOL Min Distance (106.18 0) in POOL 0 ' X (100.14 ft) In POOL (2206 -2541 MD) to = (2288.2541 1•10} to tomtit SttM„i 4 U) 1- O 107 (2361 -2495 (wp0n) Plan (2361- 166.18 180.09 5.518900 2400.00 0.00 0.00 2369.E 0977644.01 544118.73 060 40) 2704.25 52.10 13120 2374.52 0977406.30 544007.46 461.45 2 MD) 5- t Closest Approach; Refer Well: . Ignik Sikutni #1 (wp01) Plan Offset Well: L -213 ( -o y CD 3 -0Nr -atr Hori cne Subsea Meas. Subsea Coords. -ASP View VS Meas. Subsea Coals. -ASP View VS = Dittaeet. C(sls- e . l scene park ,(}nd. Angle TRUE AS(. TVD .. 954) (-1_ E( +YW(-� . , Al cameos ... Depth htd. Anole TRUE A.71 ?YPP 141443(-) E( +UW(-) f 01 0 -I POOL Min Distance (308.478) in POOL n a) (359.87 ft) in POOL (2208 -2541 MD) to C (2208 - 2 MD) to Ignik Sturi t41 = L- 213(2738 -3425 (weal ) Plan (2738- 0 U) 38(1.87 188.86 . 2226.00 0.00 0.00 2144.00 0977589.51 504115.73 0.0Q1 ) 2732.62 69.94 111.56 2134.63 0477038.45 584504.43 - 505.96 3425 MD) • Closest Approach: Reference Well Ignik Satani #1 (wp01) Plan Offset Well: L -104 _ = 343 stir Horizonte.. Subsea Meas. Subsea Coords. -ASP Visor VS Meas. Subsea Coords. -ASP View VS - , • Dista ^qa Difference .,, ,• . A , . TRUE Act TVO N + - 8 + -1 AO' -,u• •.,• • .. . TRUE . i. k; N +, E +VW 0' O POOL Mn Distance (396.4E It) in POOL N - 0 (22 2541 r MO) to (2206 -2541 MD) to - . Igtdlt Star Al ---h 0) 1- 104 (2287 -2820 (wp01) Plan (2257 - 396.46 - 396.40 - 1.60004 2641.00 0.08 0.00 2440.00 5977689.51 08411&73 0.00 MD) 2787.73 08.00 00.36_ 2463.32 5977081.58 584178.14 - 178 2820 MD) 0) Closest Approach: Reference Well: Ignik Sikunti #1 (wp01) Plan Offset Well: L -105 U) co C) I F 3-0 etstr Honzona• Subsea Meas. Subsea Caotds_ -ASP taw VS Meas. Subsea Copes. -ASP View VS • Distaeae. Difference Depth trial. Angle TRUE Art TVD N( +YS( -) E( +)NYI.) (0') Conmertk Depth lend. Angie TRUE Azi. TVO Nos(-) E( +)1W(-) (0') Commends O. POOL ere, 1:481/11184 -' 3 POOL Min Distance (44222 it) in POOL � .r. (Q (4422211) in POOL (2206 - 2541 MO) to CD CD (2208- 2541 MO) to lank StumiSI CC = -105 (2284 -2733 (wp01) Plan (2284 - G O 442-22 442.12 0 5096258 2541,00 0.00 0.00 24e0.00 5977580.61 514111.73 0.00 ) 2741.46 40.35 94.34 2409.51 5978030.48 531085.07 - 116.42 2733 MD) N -t+ Closest Appros h: Reference Welk lgnik Sikt ti #1 (wp01)llan Offset Well: L -01 ca.: stesV Horizontal V Subsea Maas. Subsea Coons. - ASP View VS Meas. Subsea Copes. -ASP View VS n qm O F Distmae. Disa'•rr, aifie�ent� _ Death Mel Anp T e RUE Azi ,j±rD .. - N( +yS f -- Et +�hY{ 1 tQ'1 .... , Qom ... r , . ,. iegL Ant. T'RtFE�Air. TVD N( +NS(-) E.� +YW( -� 10" .. , , �OOL '� �+� CO POOL Min Distance (446.85 kin POOL o C (440.85 in POOL l2200-2541 to O C (2206- 354iMD)to limit SturniP1 -a 3 1- 01(2556 - 2864 (wp01) Plan (2550 - • -- 446,85 440.84 .2.210004 2041.0 0.00 0.00 2400.00 0977588.01 584110.73 0.00 MD) 207840 34.72 134.14 2457.74 0977004,75 543972'10 411.90 2664 MO) s' -, Closest Approach: Reference Well: Ignik Sawn' #1 (wp01) Plan Offset Well: L -204 _ - _ . D 3 -D ststr Horizons" Subsea Meas. Subsea Caords. - ASP Mies: VS Maas. Subsea Coorh. -ASP View VS N 96e1e0ee. Distance _Girls-then Death Ins. Anole• TRUE AO. NO_ , , N(+)IS( -) E( +EMI {_1 i0') Comments Peon Ind. Malt TRUE Azi. ND N( +)F(-1 E( + .(0•) to POOL Min Dlslarwe (470.03 8) in POOL 3 (470.0311) In POOL (2266 - 2841 MD) to (2206 - 2541 MO) to honk Salami 411 L -204 (7554 .3132 (wp01) Plan (2598 - 4 70.03 470.02 3 .4390003 =25.00 0 .00 0.00 2144.00 5977549.61 '084110.73 0.00 MO) 2587.36 50.75 9949_ 2147.44 6977470.17 344394.57 - 167.97 3132 MD) ' Application to the AOGC• Approval of Gas Hydrate Well • • Sagavanirktok "Upper C Sand" Surface Casing Well Cased & cemented? diameter Cemented MD SSTVD L -01 yes 9 -5/8" 6/11/2001 2760ft -2525ft L -104 yes 7 -5/8" 1/20/2002 3015ft -2572ft L -105 yes 7 -5/8" 7/7/2002 2856ft -2557ft L -107 yes 7 -5/8" 8/20/2001 3036ft -2541 ft L -204 yes 10 -3/4" 7/19/2006 3457ft - 2699ft L-213 yes 9 -5/8" 4/22/2006 3897ft - 2728ft Table 3: Surface Casing Details Within 1 /4 Mile of Ignik Sikumi #1 Page 19 ConocoPhillips Alaska, Inc. Application to the AOGCC fo opry |o Gas Hydrate Well • 4 Completion String 16" 164 9pn SCRlm at em No 4 12.6#/ft L-80 IBT- mod tubing Special m 3.886" I.D. Turned te w Couplings: 4.92" 0.D. m 45. 5/ft } \ L-80 BTC to 1,473' MD 11 Two red tubarepresent / injection lines for circulating G! flu • id annulus. Black background ind i t "triple Alpc ` g with %chemical injection line (!batube) connected %KBNG \ LTS Chemical Injection Mandrel (A 4 cmogRNippewIg" No-Go Profile, mT_d, a \ : 1�7' MDag£mnID) % 4 KBMG-LTS Chemical Injection Mandrel with 34z`line, IBT mod, at 1,92 9' MD If ®® 4 Camco 2EA212«wi#£ -Go Profile, IBT mod, 7%" 297 /ft ƒ / at 1,94 2' MD (3.813" min ID) bm BTCM \ 4+ KBMG GLM with SO Vi talled, IBT mod, at 1,94 4' MD to 1,97 4' MD 4 Camco gE Apl2ew378" No-Go wo % IBT _d at 1,95 7MD(3J+ "mnID) 4Z " x7 � Cross-over and 1* long 5 Ss with 4.75" sea ! / \ bore at 1,974' MD YeIlow line is encapsulated fiber optic DTS cable \ Blaek line is encapsulated elemo cc le 1 4Z " Pressure and Temperature Gauge, IBT mod, a%034MD 4Z" 12.6# /ft bm IBT- _d $ / 4Z "c_m g» A2l2ewl9s No-Go Profile, IBT mod, � & \ at 2,224' MD (3.687" min ID) AEI ; \ \\ 4Z "�sema�meteG7mml_%a& J a Upper cSand ] .T. . . . . 3 2,240— 2,24 } / _ A; . . 4 Pressure and Tem _t eGauge, IBT mod, at %!8 §ND _.. 4Z " Baker Ac EBushing at 2,371' MD /BT D) %597 MD .- / Figure 8: EgnikSik mi #1 We |b r Schematic Page 20 Cono oPmmp Alaska, Inc. " V STATE OF ALASKA ALAS wi OiL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a. Well Status: Oil ❑ Gas ❑ SPLUG ❑ Other 0 Abandoned ❑ Suspended ❑ 1b. Well Class: Hydrates Well 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory 19 GINJ ❑ WINJ ❑ WAG ❑ WDSPL ❑ No. of Completions: Service ❑ Stratigraphic Test 2. Operator Name: 5. Date Comp., Susp., 12, Permit to Drill Number: ConocoPhillips Alaska, Inc. orAband.: April 28, 2011 211 - 027 3. Address: 6. Date Spudded: 13. API Number: P. O. Box 100360, Anchorage, AK 99510 - 0360 April 5, 2011 50 029 - 23443 - 0000 4a. Location of Well (Govemmental Section): 7. Date TD Reached: 14. Well Name and Number: Surface: 1858' FSL, 2475' FWL, Sec. 34, T12N, R11 E, UM April 16, 2011 Ignik Sikumi #1 Top of Productive Horizon: 8. KB (ft above MSL): 30.7' RKB 15. Field/Pool(s): 1850' FSL, 2480' FWL, Sec. 34, T12N, R11 E, UM GL (ft above MSL): 52.9' AMSL Prudhoe Bay Field Total Depth: 9. Plug Back Depth (MD + TVD): ' 1848' FSL, 2478' FWL, Sec. 34, T12N, R11 E, UM 2597' MD / 2597' TVD 4b. Location of Well (State Base Plane Coordinates, NAD 27): 10. Total Depth (MD + TVD): 16. Property Designation: Surface: x 584119 y 5977590 Zone 4 2597' MD / 2597' TVD ADL 28239 TPI: x - 584123 y - 5977582 Zone 4 11. SSSV Depth (MD / TVD): 17. Land Use Permit Total Depth: x 584121 y 5977579 Zone 4 nipple @ 1927' MD / 1927' TVD na 18. Directional Survey: Yes 0 No ❑ 19. Water Depth, if Offshore: 20. Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) 1760' MD / 1760' TVD 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): 22, Re - drill /Lateral Top Window MD/TVD GR/Res /Den Neu / QBAT / MRIL / MDT / Dipole Sonic / CMR / QBMI / XPT not applicable 23. CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD HOLE AMOUNT CASING SIZE WT. PER FT. GRADE TOP BOTTOM TOP BOTTOM SIZE CEMENTING RECORD PULLED 16" 62.58# B -35 31' 108' 31' 108' 24" 185 sx ArcticSet 1 10.75" 45.5# L -80 31' 1473' 31' 1473' 13.5" 299 bbls ArcticLite Crete, 128 bbls DeepCrete 7.625" x 29.7# L -80 29' 1964' 29' 1964' 9.875" 153 bbls LlteCrete I 4.5" 12.6# L -80 1964' 2592' 1964' 2592' 9.875" included above' cement to surface 24. Open to production or Injection? Yes ❑ No 0 If Yes, list each 25. TUBING RECORD Interval open (MD +TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD/TVD) 4.5" 1986' . none none 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production Method of Operation (Flowing, gas lift, etc.) production flow test to be performed in 2012 Date of Test Hours Tested Production for OIL -BBL GAS -MCF WATER -BBL CHOKE SIZE GAS -OIL RATIO Test Period - -> Flow Tubing Casing Pressure Calculated OIL -BBL GAS -MCF WATER -BBL 011 GRAVITY -API (corr) Press. psi 24 -Hour Rate -> 28. CORE DATA Conventional Core(s) Acquired? Yes ❑ No 0 Sidewall Cores Acquired? Yes ❑ No El If Yes to either question, list formations and Intervals cored (MD +TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (Submit separate sheets with this form, If needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. NONE Form 10-407 Revised 12/2009 CONTINUED ON REVERSE Submit original only .. GIC MARKERS (List all formations and marke, ntered): 29. FORMATION TESTS , I NAME MD TVD Well tested? ❑ Yes la No If yes, list intervals and formations testes:, ost - Top ground surface ground surface briefly summarizing test results. Attach separate sheets to this form, if frost - Bottom 1760' 1760' needed, and submit detailed test information per 20 AAC 25.071. gavanirktok Upper C 2214' 2214' sagavanirktok Upper C 2240' 2240' Sagavanirktok Lower C 2278' 2278' • N/A Formation at total depth: Upper /Lower C 30. LIST OF ATTACHMENTS Summary of Daily Operations, schematic, final directional survey _Itrrr-, 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Steve Shultz @ 263 - 4297 Printed Name G. L. Alvord Title: Alaska Drilling Manager Signature e 5 6 o Phone 265 -6120 Date (to t / Sharon Allsup -Drake INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10 -407 well completion report and 10 -404 well sundry report when the downhole well design is changed. Item la: Classification of Service wells: Gas injection, water infection, Water - Alternating -Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50- 029 - 20123- 00 -00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut -in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a list of intervals tested and the corresponding formation, and a brief summary of this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. 'orm 10 -407 Revised 12/2009