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Home My WebLink AboutCO 605 ACONSERVATION ORDER 605A Docket Number: CO-20-002 1. February 6, 2020 ConocoPhillips Alaska, Inc. request for Pool Rules Expansion, Appendix 1, Pages 8 and 11, Figures 3-6 held in secure storage 2. ------------------- Emails 3. February 11, 2020 Notice of hearing, affidavit of publication, and mailing 4. April 23, 2021 Request for administrative amendments to the Qannik Oil Pool (CO 605A.001) 5. December 1, 2021 Emails between CPAI and AOGCC ORDERS STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION 333 West 7" Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF CONOCO- ) Docket Number: CO -20-002 PHILLIPS ALASKA, INC. to amend ) Conservation Order 605A Conservation Order 605 to expand the vertical ) Colville River Field limits and to contract the Affected Area of the ) Qannik Oil Pool Qannik Oil Pool within the Colville River ) Colville River Unit Field, Colville River and Pikka Units. ) Pikka Unit North Slope Borough, Alaska March 17, 2020 IT APPEARING THAT: 1. By letter and application dated February 6, 2020, ConocoPhillips Alaska, Inc. (CPAI), operator of the Colville River Unit (CRU), requests the Alaska Oil and Gas Conservation Commission (AOGCC) amend Conservation Order No. 605 (CO 605) to expand the vertical limits of the Qannik Oil Pool and to contract the Affected Area of the pool to align with changes in lease ownership. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for March 17, 2020. On February 10, 2020, the AOGCC published notice of the hearing on the State of Alaska's Online Public Notices website and on the AOGCC's website, and the AOGCC electronically transmitted the notice to all persons on the AOGCC's email distribution list and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On February 11, 2020, the notice was published in the ANCHORAGE DAILY NEWS. 3. The AOGCC received no comments or request to hold the proposed hearing. 4. CPAI provided sufficient information in its application for the AOGCC to make a decision without a hearing, so the proposed hearing was vacated on March 3, 2020. FINDINGS: 1. Operators: CPAI operates the CRU. Oil Search (Alaska) LLC (OSA) operates the Pikka Unit. The Pikka Unit contains the acreage CPAI proposes to remove from the Qannik Oil Pool Affected Area. The CRU and Pikka Unit are in North Slope Borough, Alaska. 2. Owners and Landowners: Five companies hold working interests in the CRU: ConocoPhillips (99.1564%), Petro -Hunt LLC (0.3483%), XH LLC (0.2730%), Rosewood Resources Inc. (0.2198%), and William Herbert Hunt Trust Estate (0.0024%). Four companies hold working interests in the Pikka Unit: Repsol E&P USA Inc. 49%, OSA 25.5%, Armstrong Energy LLC 20.3091%, and GMT Exploration Co LLC 5.1909%. The landowners are the State of Alaska, Department of Natural Resources and the Arctic Slope Regional Corporation. Oannik Oil Pool: CO 605 defines the Qannik Oil Pool as the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths (MD) of 6,086' and 6,249' on the Electromagnetic Wave Resistivity (EWR) log recorded in well CRU CO 605A March 17, 2020 Page 2 of 8 CD2 -11 (API No. 50-103-20515-00-00; see Figure 1, below). CPAI requests the AOGCC amend CO 605 to expand the Qannik Oil Pool vertically 56' MD: i.e., from the top of the K-2 interval at 6,086' MD to the top of the K-3 interval at 6,030' MD in that well. CPAI makes this request because the K-3 thickens and develops hydrocarbon -bearing, reservoir - quality, sandstone beds within the proposed vertical expansion area. CPAI plans to drill and test these beds to determine their producibility. CO 605A March 17, 2020 Page 3 of 8 Figure 1. CRU CD2 -11 — Type Log for Proposed Vertical Expansion, Qannik Oil Pool' CPAI also requests the AOGCC change the Affected Area subject to CO 605 to exclude leases subject to mandatory contraction from the CRU effective February 15, 2014. Those leases expired at the time of unit contraction. The acreage proposed for removal from the Affected Area of the Qannik Oil Pool has been re-leased and is now part of the Pikka Unit. 'Figure 1 is for illustration purposes only. Refer to the EWR well log recorded in well CRU CD2 -11 for the precise representation of the Qannik Oil Pool. baa TVDSS> n mwwm 6000 -6000 S �_ r M 1 u _. 6100 D D LO O n .6100 O 7 p D U L I o 5 a D L 0 Y 6200 c _ C7 -6200 Figure 1. CRU CD2 -11 — Type Log for Proposed Vertical Expansion, Qannik Oil Pool' CPAI also requests the AOGCC change the Affected Area subject to CO 605 to exclude leases subject to mandatory contraction from the CRU effective February 15, 2014. Those leases expired at the time of unit contraction. The acreage proposed for removal from the Affected Area of the Qannik Oil Pool has been re-leased and is now part of the Pikka Unit. 'Figure 1 is for illustration purposes only. Refer to the EWR well log recorded in well CRU CD2 -11 for the precise representation of the Qannik Oil Pool. CO 605A March 17, 2020 Page 4 of 8 CONCLUSIONS: 1. Amending the Pool Rules for the Qannik Oil Pool is appropriate because extending the Qannik Oil Pool vertically will facilitate drilling and testing additional reservoir sandstone beds to determine producibility, facilitating development of the pool. 2. Pool boundaries should be based on geological and geophysical properties. Accordingly, removing the portion of the Qannik Oil Pool that is now outside the CRU boundary would serve no purpose and would not be consistent with AOGCC regulations. NOW, THEREFORE, IT IS ORDERED: The development and operation of the Qannik Oil Pool is subject to the following rules and to the statewide requirements under 20 AAC 25 to the extent not superseded by these rules. This order supersedes CO 605; CO 605.001, CO 605.002, and CO 605.003 remain in effect. The records of CO 605 and its associated administrative approvals are incorporated by reference in this order. Affected Area: Umiat Meridian Township, Range Sections TI ON, R04E 1-4 T1ON, R05E 4-6 TI IN, R04E 1 — 4; 9 — 16; 21 — 28; 33 — 36 T1IN, R05E 4-9;16-21;28-33 T12N, R04E 1 — 4; 9 —16; 21 — 28; 33 — 36 T12N, R05E 4-9; 16-21; 28-33 Rule 1 Field and Pool Name (Revised this order) The majority of the pool is in the Colville River Field and a portion is in the Pikka Unit. Hydrocarbons underlying the Affected Area and within the interval of the Torok Formation identified in Rule 2 (below) constitute the oil pool named "Qannik Oil Pool." Rule 2 Pool Definition (Revised this order) The Qannik Oil Pool is the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths of 6,030' and 6,249' on the EWR log recorded in well CRU CD2 -11. CO 605A March 17, 2020 Page 5 of 8 Rule 3 Well Spacing (Restated from CO 605) There shall be no restrictions as to well spacing except that no pay shall be opened in a well within 500' of an external property line where the owners and landowners are not the same on both sides of the line. Rule 4 Drilling Waivers (Restated from CO 605) All permits to drill deviated wells within the Qannik Oil Pool shall include a plat with a plan view, vertical section, close approach data and a directional program description in lieu of the requirements of 20 AAC 25.050(b). Rule 5 Automatic Shut-in Equipment (Revised Other Order 66) Injection wells (excluding disposal injectors) must be equipped with a. a double check valve arrangement or b. a single check valve and a SSV. A subsurface -controlled injection valve or SCSSV satisfies the requirements of a single check valve. Rule 6 Common Production Facilities and Surface Commingling (Restated from CO 605) a. Production from the Qannik Oil Pool and other CRU pools may be commingled in surface facilities prior to custody transfer. b. Production shall be allocated to wells within the Qannik Oil Pool in accordance with the procedures described in Section 6.0 of CPAI's application, dated April 3, 2008. c. Each producing well must be tested a minimum of twice per month. d. The Commission may require more frequent or longer testing if the allocation quality deteriorates. e. The operator shall submit a monthly report and electronic file(s) containing daily allocation data and daily test data for agency surveillance and evaluation. f. The operator shall provide the Commission an annual well test and allocation review report in conjunction with the annual reservoir surveillance report required under Rule 9 (below). Rule 7 Reservoir Pressure Monitoring (Restated from CO 605) a. A bottom -hole pressure survey shall be taken on each well prior to initial production or injection. b. The operator shall obtain the pressure surveys needed to manage the hydrocarbon recovery processes that are subject to the annual plan outlined in Rule 9 (below). c. The reservoir pressure datum will be 4,000' TVDSS. d. Pressure surveys may consist of stabilized static pressure measurements at bottomhole or be extrapolated from surface measurements (single phase fluid conditions), pressure fall-off measurements, pressure buildup measurements, multi -rate test results, drill -stem test results, open -hole formation test results or other appropriate technical pressure transient or static test results. e. A Reservoir Pressure Report, Form 10-412, shall be utilized for all surveys; all relevant data shall be attached to the report. The data submitted shall include, but are not limited to, rate, CO 605A March 17, 2020 Page 6 of 8 pressure, depth, fluid gradient, temperature, and all other well conditions necessary for a complete analysis of each survey. f. The results and data from any special reservoir pressure monitoring tests or surveys shall be submitted in accordance with paragraph (e) of this rule. Rule 8 Gas -Oil Ratio Exemption (Restated from CO 605) Wells producing from the Qannik Oil Pool are exempt from the GOR limits of 20 AAC 25.240(a) as long as 20 AAC 25.240(b)(1) applies. Rule 9 Annual Reservoir Review (Restated from CO 605) An annual reservoir surveillance report must be filed by April I' of each year. The report must include future development plans, reservoir depletion plans, and surveillance information for the prior calendar year, including: 1. the voidage balance, by month, of produced and injected fluids and the cumulative status for each producing interval; 2. a reservoir pressure map at datum and a summary and analysis of the reservoir pressure surveys within the pool; 3. the results and, where appropriate, an analysis of any production and injection log surveys, tracer surveys, observation well surveys, and any other special monitoring; 4. a review of pool production allocation factors and issues over the prior year; 5. a review of the progress of the enhanced recovery project; and 6. a reservoir management summary, including the results of any reservoir simulation studies. Rule 10 Annular Pressures (Restated from CO 605) a. At the time of installation or replacement, the operator shall conduct and document a pressure test of tubulars and completion equipment in each development well that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each development well daily to check for sustained pressure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for Commission inspection. c. The operator shall notify the Commission within three working days after the operator identifies a development well as having (i) sustained inner annulus pressure that exceeds 2,000 psig for all development wells, or (ii) sustained outer annulus pressure that exceeds 1,000 psig. d. The Commission may require the operator to submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action or increased surveillance for any development well having sustained pressure that exceeds a limit set out in paragraph (c) of this rule. The Commission may approve the operator's proposal or may require other corrective action or surveillance. The Commission may require that corrective action be verified by mechanical integrity testing or other Commission -approved diagnostic tests. The operator shall give the Commission sufficient notice of the testing schedule to allow the Commission to witness the tests. CO 605A March 17, 2020 Page 7 of S e. If the operator identifies sustained pressure in the inner annulus of a development well that exceeds 45% of the burst pressure rating of the well's production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well's surface casing for outer annulus pressure, the operator shall notify the Commission within three working days and take corrective action. Unless well conditions require the operator to take emergency corrective action before Commission approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action. The Commission may approve the operator's proposal or may require other corrective action. The Commission may also require that corrective action be verified by mechanical integrity testing or other Commission -approved diagnostic tests. The operator shall give the Commission sufficient notice of the testing schedule to allow the Commission to witness the tests. f. Except as otherwise approved by the Commission under (d) or (e) of this rule, before a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient degree (1) that the inner annulus pressure at operating temperature will be below 2,000 psig, and (2) that the outer annulus pressure at operating temperature will be below 1,000 psig. However, a well that is subject to (c) but not (e) of this rule may reach an annulus pressure at operating temperature that is described in the operator's notification to the Commission under (c) of this rule, unless the Commission prescribes a different limit. g. For purposes of this rule, 1. "inner annulus" means the space in a well between tubing and production casing; 2. "outer annulus" means the space in a well between production casing and surface casing 3. "sustained pressure" means pressure that (A) is measurable at the casing head of an annulus, (B) is not caused solely by temperature fluctuations, and (C) is not pressure that has been applied intentionally. Rule 11 Allowable Gas Off Take (Restated from CO 605) 1. The cumulative gas off take rate from the CRF must not exceed 1 MMCFPD. 2. Natural gas may be severed from the CRF only to meet CPAI's contractual obligation to provide the Village of Nuiqsut with natural gas. Rule 12 Administrative Action (Restated from CO 605) Upon proper application, or its own motion, and unless notice and public hearing are otherwise required, the Commission may administratively waive the requirements of any rule stated herein or administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated March 16, 2020. CK•z1d � March 17, 2020 Page 8 of 8 Daniel T. Seamount, Jr. Commissioner J ie L. Chmielowski ommissioner 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 most 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 par 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. In computing a period of time above, the date of the event or default after which the designated period begins to ran 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. Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Ninilchik, AK 99639 Penny Vadla 399 W. River ' Ave. Soldo AK 99669-7714 Richard Wagner P.O. Box 60868 Fairbanks, AK 99706 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 605A.001 AREA INJECTION ORDER NO. 40.002 December 1, 2021 Mr. Stephen Thatcher Manager, WNS Development North Slope Development ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Re: Docket Numbers: CO-21-006 and AIO-21-006 Request for Administrative Approval to Amend Conservation Order No. 605A and Area Injection Order No. 40 Surface Commingling of Production and Authorized Injection Fluids Colville River Unit, Qannik Oil Pool Greater Moose’s Tooth Unit, Lookout Oil Pool Dear Mr. Thatcher: By letter dated April 22, 2021, ConocoPhillips Alaska, Inc. (CPAI) requested administrative approval to amend Conservation Order No. 605A (CO 605A), the pool rules for the Qannik Oil Pool (QOP), and Area Injection Order No. 40 (AIO 40), the area injection order for the Lookout Oil Pool, in order to make them consistent with the other Colville River Unit (CRU) and Greater Moose’s Tooth Unit (GMTU) pool rules and area injection orders. Specifically, CPAI requested approval for surface commingling of production from the Rendezvous Oil Pool (ROP) and the QOP in the facilities of the CRU prior to custody transfer metering. CPAI also requests to amend the list of authorized injection fluids in AIO 40 to be consistent with the other pools that share a common water injection system. In accordance with 20 AAC 25.556(d), the Alaska Oil and Gas Conservation Commission (AOGCC) hereby GRANTS CPAI’s request for administrative approvals. Other Orders No. 112A and 148 (OO 112A and OO 148 respectively) authorize commingling of production from the GMTU drill sites 1 and 2 (GMTU1 and GMTU2 respectively) in surface facilities in the CRU with production from the CRU pools prior to custody transfer metering. CO 605A.001 AIO 40.002 December 1, 2021 Page 2 of 3 Rule 6 of CO 605A allows QOP production to be commingled with other CRU pools but was never updated to also allow surface commingling with the LOP and ROP as was authorized under OO 112A and OO 148. To eliminate this contradiction between CO 605A and OO 112A and OO 148, Rule 6 of CO 605A needs to be amended to read as follows: Rule 6 Common Production Facilities and Surface Commingling (Revised CO 605A.001) a. Production from the Qannik Oil Pool and other CRU and GMTU pools may be commingled in surface facilities prior to custody transfer. b. Production shall be allocated to wells within the Qannik Oil Pool in accordance with the procedures described in Section 6.0 of CPAI’s application, dated April 3, 2008. c. Each producing well must be tested a minimum of twice per month. d. The Commission may require more frequent or longer testing if the allocation quality deteriorates. e. The operator shall submit a monthly report and electronic file(s) containing daily allocation data and daily test data for agency surveillance and evaluation. f. The operator shall provide the Commission an annual well test and allocation review report in conjunction with the annual reservoir surveillance report required under Rule 9 (below). All CRU and GMTU pools that are authorized for an enhanced oil recovery injection project share the same supply systems and thus the same fluids go to all pools. Currently, the LOP lacks one fluid authorized in the other pools. Specifically, the LOP lacks authorization for: Small amounts of Class II fluids, which will be mixed with the source or produced water including sump fluid, hydrotest fluid, rinsate generated from washing trucks, excess well work fluids, meltwater collected from well cellars. All CRU and GMTU pools are tied into the same injection system.. The LOP, ROP, and Alpine Oil Pool (AOP) are all Alpine formation reservoirs. Because to date, there have been no compatibility issues with injecting these fluids in the AOP or ROP, no compatibility issues are anticipated for the LOP either. To make AIO 40 consistent with the other AIOs for CRU and GMTU pools, Rule 3 will be amended to read as follows: Rule 3 Authorized Fluids for Injection for Enhanced Recovery Fluids authorized for injection are: a. Source water from the Kuparuk seawater treatment plant; b. Produced water from all present and yet-to-be defined oil pools within the GMTU and CRU; c. Enriched hydrocarbon gas (blend of CRU and GMTU lean gas enriched with indigenous heavy gas components); CO 605A.001 AIO 40.002 December 1, 2021 Page 3 of 3 d. Lean gas from the Alpine Central Facility; e. Tracer survey fluids to monitor reservoir performance; f. Fluids used to improve near wellbore injectivity; g. Fluids used to seal wellbore intervals which negatively impact recovery efficiency; h. Fluids associated with freeze protection; i. Standard oilfield chemicals; and j. Small amounts of Class II fluids, which will be mixed with the source or produced water including sump fluid, hydrotest fluid, rinsate generated from washing trucks, excess well work fluids, meltwater collected from well cellars. DONE at Anchorage, Alaska and dated December 1, 2021. Daniel T. Seamount, Jr. Jessie L. Chmielowski Commissioner Commissioner 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. 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. Dan Seamount Digitally signed by Dan Seamount Date: 2021.11.30 13:51:19 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2021.11.30 14:34:16 -09'00' From:Salazar, Grace (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Conservation Order No. 605A.001 an Area Injection Order No. 40.002 Date:Wednesday, December 1, 2021 7:27:51 AM Attachments:CO 605A.001 and AIO 40.002.pdf The Alaska Oil and Gas Conservation Commission has issued the attached Order, granting Conoco Phillips Alaska, Inc.’s request for administrative approval to amend Conservation Order No. 605A for the Qannik Oil Pool and Area Injection Order No. 40 for the Lookout Oil Pool. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov AOGCC 333 W 7th Avenue, Anchorage, AK 99501 TO: BERNIE KARL K&K RECLYCLING, INC. PO BOX 58055 FAIRBANKS, AK 99711 Mailed 12/1/21 gs Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 605A.002 AREA INJECTION ORDER NO. 35.005 Mr. Ian Ramshaw Manager, WNS Development North Slope Development ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 Re: Docket Numbers: CO-23-010 and AIO-23-020 Administrative Amendment to Conservation Order 605A and Area Injection Order 35 Adjustment of Affected Area Colville River Unit, Qannik Oil Pool Dear Mr. Ramshaw: On its own motion the Alaska Oil and Gas Conservation Commission (AOGCC) is amending the affected area of Conservation Order No. 605A (CO 605A) and Area Injection Order No. 35 (AIO 35), the pool rules and area injection order for the Qannik Oil Pool (QOP), in order to make them consistent with the current boundary of the Colville River Unit (CRU). On February 6, 2020, ConocoPhillips Alaska, Inc. (CPAI) applied to expand the vertical limits of the QOP and to contract a portion of the affected area to remove acreage that CPAI no longer operated due to the contraction of the CRU and subsequent releasing of the acreage. At the time the AOGCC declined to contract the affected area since a pool should ordinarily be defined by its geologic limits and not arbitrarily established property lines. Since that order was issued development of Nanushuk Formation projects has occurred in the CRU (where the Nanushuk Formation is known as the QOP and the Narwhal Reservoir), the Pikka Unit (where Oil Search (Alaska), LLC (OSA) recently applied for pool rules for the Nanushuk Oil Pool), and the Kuparuk River Unit (where the Nanushuk Formation is known as the Coyote Reservoir).All evidence points to these developments occurring in one broad geologic formation. While the Nanushuk Formation across the CRU and Pikka Unit (PU) is a single pool from a geologic point of view, from an operational standpoint having a single set of rules that applies across two units is impractical as each operator may have somewhat different ideas about the best way to develop the Nanushuk Formation on their acreage. Additionally, regulations restrict AIOs to a single operator, so they must be constrained only to land that an operator has legal rights to. CO 605A.002 AIO 35.005 July 20, 2023 Page 2 of 3 Therefore, while the AOGCC recognizes the Nanushuk Formation across the CRU and PU and likely on acreage outside of those units is geologically a single pool, rules and injection orders for projects in that pool will have the affected area limited to the unit boundaries upon which the operator has the rights to operate. As such the affected area of CO 605A and AIO 35 will be contracted to conform to the CRU boundary as of the date of this order. Having one pool being developed by multiple operators across multiple units, as is being done with the Nanushuk Formation across the CRU and PU has the potential to result in the waste of resources along the unit boundaries if the operators do not coordinate their operations and because of the property line offset requirements in place to protect correlative rights. As such, the AOGCC strongly encourages CPAI and OSA to coordinate their development activities across the Nanushuk Formation and investigate ways to prevent waste of resources along property lines. In accordance with 20 AAC 25.556(d), the AOGCC hereby amends CO 605A and AIO 35 as follows: Affected Area: Umiat Meridian Township, Range Sections T10N, R04E 1 – 4 T10N, R05E 5 – N1/2NW1/4, SW1/4NW1/4, & NW1/4SW1/4 6 - All T11N, R04E 1 – 4; 9 – 16; 21 – 28; 33 – 36 T11N, R05E 4 – 9; 16 – 21; 28 – 33 T12N, R04E 1 – 4; 9 – 16; 21 – 28; 33 – 36 T12N, R05E 4 – 9; 16 – 21; 28 – 33 DONE at Anchorage, Alaska and dated July 20, 2023. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.07.20 14:06:44 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.07.20 14:51:30 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.07.20 19:06:50 -05'00' CO 605A.002 AIO 35.005 July 20, 2023 Page 3 of 3 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. 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. From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] CO 605A.002 and AIO 35.005 (CRU) Date:Thursday, July 20, 2023 4:19:57 PM Attachments:CO 605A.002 and AIO 35.005.pdf Administrative Amendment to Conservation Order 605A and Area Injection Order 35 Adjustment of Affected Area Colville River Unit, Qannik Oil Pool Samantha Carlisle Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov INDEXES From:Salazar, Grace (OGC) To:Glessner, Dana Cc:Roby, David S (OGC) Subject:Conservation Order No. 605A.001 an Area Injection Order No. 40.002 Date:Wednesday, December 1, 2021 7:05:00 AM Attachments:CO 605A.001 and AIO 40.002.pdf Hello Dana, The Alaska Oil and Gas Conservation Commission has issued the attached Order, granting Conoco Phillips Alaska, Inc.’s request for administrative approval to amend Conservation Order No. 605A for the Qannik Oil Pool and Area Injection Order No. 40 for the Lookout Oil Pool. If you have any questions, please do not hesitate to contact Mr. Dave Roby, Senior Reservoir Engineer, at (907) 793-1232 or via email at dave.roby@alaska.gov. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ ConocoPhillips April 22, 2021 Jeremy Price, Chair Alaska Oii and Gas Conservation Commission 333 W. 7th Ave #100 Anchorage, Alaska, 99501-3539 RECEIVED 8y Grace Salazar at 9.49 am, Apr 23, 2021 Stephen Thatcher Manager, WN5 Development North Slope Development ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, AK 99510-0360 phone 907.263.4464 RE: Request for Administrative Amendments, Qannik Oil Pool and Lookout Oil Pool, North Slope, AK Dear Commissioner Price, ConocoPhillips Alaska, Inc. (CPAI) as Operator of the Colville River Unit (CRU) and Greater Moose's Tooth Unit (GMTV) and on behalf of the CRU and GMTU working interest owners (WIO), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) administratively amend the conservation order (CO) for the Qannik Oii Pool (QOP) and the area injection order (A10) for the Lookout Oil Pool (LOP). This request is being made concurrently with applications for the Rendezvous Oil Pool (ROP) CO and AIO. Those applications also provide further background for this request. The OOP is currently approved for production commingling with other CRU pools and the LOP. The ROP CO application explains that like the LOP, the ROP is an Alpine formation reservoir that is expected to be fully compatible with production from the other CRU and GMTU oil pools. CPAI requests that CO No. 605.003, Rule 6 of the QOP be amended to allow commingling of ROP production in surface facilities prior to custody transfer, as follows: CO 605.003 Rule 6 Common Production Facilities and Surface Commingling a. Production from the Qannik Oil Pool and other CRU and GMTU pools may be commingled in surface facilities prior to custody transfer. b. Production shall be allocated to wells within the Qannik Oil Pool in accordance with the procedures described in Section 6.0 of CPAI's application, dated April 3, 2008. c. Each producing well must be tested a minimum of twice per month. d. The Commission may require more frequent or longer testing if the allocation quality deteriorates. e. The operator shall retain electronic file(s) containing daily allocation data and daily test data for a minimum of five years. f. The operator shall provide the Commission an annual well test and allocation review report in conjunction with the annual reservoir surveillance report required under Rule 9. Request for Administrative Amendments April 22, 2021 Page 2 of 2 CPAI also requests that the LOP AIO 40, Rule 3 be amended so that the fluids authorized for injection in the EOR interval include the following: • Small amounts of Class II fluids, which will be mixed with the source or produced water including: sump fluid, hydro -test fluid, rinsate from washing mud hauling trucks, excess well -work fluids, meltwater collected from well cellars. These fluids are currently approved as an EOR injection fluid in the AOP (AIO 18E) and requested in the concurrent ROP AIO application. The proposed language limits injection to small quantities that must be mixed with source or produced water. Additionally, like the AOP and ROP, the LOP is an Alpine formation reservoir, and these injection fluids are expected to be fully compatible with the LOP and are not expected to negatively impact hydrocarbon recovery. CPAI is requesting the addition of these fluids to maintain consistency across CPAI operated pools and also for operational flexibility of remote operations where storage capacity is limited. Please contact Dana Glessner (265-6478, glessd@conocophillips.com) if you have questions or require additional information. Regards, Stephen Thatcher Manager, WNS Development North Slope Operations and Development Cc: Chait Borade, Arctic Slope Regional Corporation Erik Kenning, Arctic Slope Regional Corporation Tom Stokes, Alaska Department of Natural Resources, Division of Oil and Gas Wayne Svejnoha, United States Department of Interior, Bureau of Land Management ANCHORAGE DAILY NEWS AFFIDAVIT OF PUBLICATION Account #: 270227 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION 333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order#: W0013482 STATE OF ALASKA THIRD JUDICIAL DISTRICT Lisi Misa being fust duly sworn on oath deposes and says that she is a representative of the An- chorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the afore- said place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on 02/11/2020 and that such newspaper was regularly distrib- uted to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. .0m �411151 Subscribed and sworn to before me this 11 th day of February 2020. 1 Notal Public in and for The State of Alaska. Third Division Afichorage, Alaska MY COMMISSION EXPI S ZC�E Cost: $234.1 RECEIVE® FEB 12 2020 AOGCC Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -20-002 The application of ConocoPhillips Alaska, Inc. (CPAI) for amendments to Conservation Order No. 605 (CO 605), which governs the Qannik Oil Pool, Colville River Unit CPAI, by letter dated February 6, 2020, requests the Alaska oil and Gas Conservation Commission (AOGCC) amend CO 605 to expand the pool limits vertically and to contract the pool's affected area to align with changes in lease ownership since CO 605 was initially issued. The AOGCC has tentatively scheduled a public hearing on this application for March 17, 2020, at 10:00 a.m. at 333 West 7th Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearinS be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on February 28, 2020. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after March 1, 2020. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on March 14, 2020, except that, if a hearing is held, comments must be received no later than the conclusion of the March 17, 2020 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than March 15, 2020. Hsignature on file// Jeremy M. Price Chair, Commissioner Published: February 11, 2020 4�s OF NOTARY 19 PUSIlC aad C. NoWt�c9 STATE OF ALASKA ADVERTISINGNOTICE ORDER TO PUBLISHER SUBMITINVOICE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVITOP PUBCATION WITH ADVERTSMENTATTACf1ED COPY OF ADVERTISING ORDER NUMBER p1 AO—OO-ZO-020 FROM: Alaska Oil and Gas Conservation Commission AGENCY CONTACT: Jody Colombie/Samantha Carlisle DATE OF A.O.AGENCY 2/10/2020 PHONE: 907 279-1433 333 West 7th Avenue Anchorage, Alaska 99501 DATES ADVERTISEMENT REQUIRED: COMPANY CONTACT NAME: PNONE NUMBER: ASAP FAX NUMBER: 907 276-7542 TO PUBLISHER: Anchorage Daily News, LLC SPECIAL INSTRUCTIONS: PO Box 140147 Anchorage, Alaska 99514-0174 TYPE OF ADVERTISEMENT: �V LEGAL r- DISPLAY F CLASSIFIED r OTHER (Specify below) DESCRIPTION PRICE CO -20-002 Initials of who prepared AO: Alaska Non -Taxable 92-600185 SUBMIT INVOICE SHOWING ADVERTISING ORDER NO., CRRTIFIED APFIDAVIT OF PUBLICATION WITH ATPACNEDCOPY OF ADVERTISMENTTO: AOGCC 333 West 7th Avenue Anchors e, Alaska 99501 Pae I of I Total Of All Pages $ REF Typal Number Amount Data Comments I PVN IVCO21795 2 AD AO -08-20-020 3 a FIN AMOUNT SY Act Template I PGM LGR Object FY DIST LIQ I 20 AOGCC 3046 20 2 3 sAI Porch 1 it Purchasing Authority's Signature Telephone Number . A. # and receiving agency name must appear on all invoices and documents relatingto this purchase. 2. state is registered for tax free transactions under Chapter 32, IRS code. Registration number 92-73-0006 K. Items are for the exclusive use of the state and notf sale. DISTRIBUTION: Division Fiscal/Original AO Copies: Publisher (faxed), Division Fiscal, Receiving Form: 02-901 Revised: 2110/2020 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION Re: Docket Number: CO -20-002 The application of ConocoPhillips Alaska, Inc. (CPAI) for amendments to Conservation Order No. 605 (CO 605), which governs the Qannik Oil Pool, Colville River Unit CPAI, by letter dated February 6, 2020, requests the Alaska Oil and Gas Conservation Commission (AOGCC) amend CO 605 to expand the pool limits vertically and to contract the pool's affected area to align with changes in lease ownership since CO 605 was initially issued. The AOGCC has tentatively scheduled a public hearing on this application for March 17, 2020, at 10:00 a.m. at 333 West 7'h Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on February 28, 2020. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 after March 1, 2020. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7's Avenue, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on March 14, 2020, except that, if a hearing is held, comments must be received no later than the conclusion of the March 17, 2020 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at (907) 793-1221, no later than March 15, 2020. Jer . Pric i , ommissioner Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 George Vaught, Jr. P.O. Box 13557 Gordon Severson 3201 Westmar Cir. Anchorage, AK 99508-4336 Darwin Waldsmith P.O. Box 39309 Penny Vadla 399 W. Riverview Ave. Soldotna, AK 99669-7714 Richard Wagner P.O. Box 60868 Denver, CO 80201-3557 Ninilchik, AK 99639 Fairbanks, AK 99706 Cclombie, Jody J (CED) From: Chmielowski, Jessie L C (CED) Sent: Monday, February 10, 2020 10:22 AM To: Roby, David S (CED) Cc: Price, Jeremy M (CED); Seamount, Dan T (CED); Ballantine, Tab A (LAW); Wallace, Chris D (CED); Loepp, Victoria T (CED); Davies, Stephen F (CED); Boyer, David L (CED); Colombie, Jody J (CED) Subject: RE: Application to expand/contract the Qannik Oil Pool Hi Dave, To follow up on our conversation, we will prepare a public notice for the pool rules expansion only. The AIO contraction will be handled administratively. Thanks, Jessie Jessie Chmielowski Commissioner Alaska Oil and Gas Conservation Commission CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCQ, State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact AOGCC at 907- 793-1223 or iessie.chmielowskiPalaska.gov. From: Roby, David S (CED) <dave.roby@alaska.gov> Sent: Thursday, February 6, 2020 3:24 PM To: Price, Jeremy M (CED) <jeremy.price@alaska.gov>; Seamount, Dan T (CED) <dan.seamount@alaska.gov>; Chmielowski, Jessie L C (CED) <jessie.chmielowski@alaska.gov>; Ballantine, Tab A (LAW) <tab.ballantine@alaska.gov>; Wallace, Chris D (CED) <chris.wallace@alaska.gov>; Loepp, Victoria T (CED) <victoria.loepp@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov>; Boyer, David L (CED) <david.boyer2@alaska.gov>; Colombie, Jody J (CED) <jody.colom bie@alaska.gov> Subject: Application to expand/contract the Qannik Oil Pool All, CP submitted an application to vertically expand the Qannik Oil Pool to add an interval that sits immediately on top of the existing pool definition but isn't pay in the main development area but looks like it could be pay as you go out more towards the periphery of the pool's affected area. They're also applying to contract the affected area by a section and some change to remove acreage that was contracted out of the unit and that they no longer own. The main reason for the expansion is they have a well in the periphery area of the pool that is completed mostly in the existing Qannik Oil Pool but also toes up into the overlying sediments that they want to flow test. They're not proposing any changes to the associated AIO at this time because the periphery well will not be associated any injection project. There is an active ERIO for a pilot injection project that is even further on the periphery than the test well mentioned above and it is more than likely in the interval they want to expand the Qannik Oil Pool to cover but they're not 100% certain of that at this time and since it has its own injection order expansion of the AID is not necessary at this time. Should the pilot project prove that expansion of the AIO is necessary they'd apply to expand the AIO prior to moving towards a full scale development project. I agree that expanding the AIO at this time is not necessary, but I think we might need to contract the AIO to match what is ;proposed for the pool rules. The reason I think so is that by statute/reg an injection order has to be limited to a single operator and since CP is no longer operator of the acreage to be contracted out their AIO is not effective over that acreage. We're preparing a public notice for the pool rules expansion because any expansion requires us to provide notice of opportunity for comment/hearing. There's a couple of questions related to this: 1) Should we contract the AIO at this time to remove the acreage CP no longer has under lease orjust ignore this since by reg/statute the AIO isn't effective over that acreage already? 2) If we do decide to contract the AIO affected area do we need to include this as our own motion in the notice to expand and contract the pool? There's "solid" arguments for and against adding contraction of the AIO to the notice: For— makes it a more transparent process. Against— Contractions of pools and injection orders can be done administratively and would result in just an admin approval instead of an amended order. And, as pointed out above it's not strictly necessary that we do anything at this time. Thoughts? David Roby Senior Reservoir Engineer Alaska Oil and Gas Conservation Commission 907-793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOG CC is aware of the mistake in sending it to you, contact Dave Roby at 907- 793-1232 or dave.robv@alaska.zov. Stephen Thatcher Manager, WINS Development North Slope Development ConocoPhillips Alaska, Inc. f ATO -1770 -'' 700 G Street ConoCcPhil lips Anchorage, AK 99501 phone 907.263.4464 Feb 61h, 2020 Jeremy M Price, Chair RECEIVE® Alaska Oil and Gas Conservation Commission 333 W. 7th Ave #100 FEB 0 6 2020 Anchorage, Alaska, 99501-3539 �+ AOGCC RE: Application for Pool Rules Expansion Qannik Oil Pool, Colville River Field, Colville River Unit Dear Commissioner Price: ConocoPhillips Alaska, Inc. ("CPAI") as operator of the Colville River Unit ("CRU") and on behalf of the working interest owners, requests that the Alaska Oil and Gas Conservation Commission ("Commission") approve administrative amendments to Conservation Order 605 to expand the Qannik Oil Pool vertically. Enclosed are the original and a copy of the application. Please contact Leslie Senden (263-4284) if you have questions or require additional information. Regards, �/ 4- t / *41—� Stephen Thatcher Manager, WNS Development North Slope Development Enclosures (2) CPAI Application for Qannik Oil Pool Expansion February 2020 Page 1 ConocoPhiills p APPLICATION FOR VERTICAL EXPANSION AND AREAL CONTRACTION OF THE QANNIK OIL POOL Feb 6th, 2020 1. Introduction 2. Qannik Oil Pool History 3. Proposed Qannik Oil Pool 4. Qannik Sand Development 5. Proposed Amendments to Qannik Oil Pool Rules List of Figures 1. Plot of the Proposed Qannik Oil Pool 2. Qannik and K-3 Basal Type Loa 3. Confidential: Stratigraphic Cross Section 4. Confidential: Qaiuuk Depth Structure Map 5. Confidential: Qannik and K-3 Basal Net Pay Maps 6. Confidential: CD4 -499 Northwest -Southeast Seismic Section Confidential materials are submitted in Appendix 1 CPAI Application for Qannik Oil Pool Expansion February 2020 Page 2 1. INTRODUCTION Document Scope ConocoPhillips Alaska, Inc. ("CPAI") submits this application to the Alaska Oil and Gas Conservation Commission ("Commission" or "AOGCC") to modify the definition of the Qannik Oil Pool ("QOP") in Conservation Order ("CO") 605. CPAI proposes to expand the QOP vertically by raising the top of the pool from 6,086' measured depth to 6,030' measured depth in the CD2 -11 type log. CPAI also proposes to contract one full and one partial section of land out of the pool to align with lease ownership. Applicable Criteria The AOGCC will, in a pool order, "establish requirements (1) that the commission considers necessary to prevent waste, protect freshwater, protect correlative rights, and ensure a greater ultimate recovery of oil and gas; and (2) based on the operating and technical data presented." 20 AAC 25.520(a). The commission will also "in its discretion, amend pool orders in accordance with the procedures set forth in 20 AAC 25.540." 20 AAC 25.520(b). As defined by statute, a "pool" means "an underground reservoir containing, or appearing to contain, a common accumulation of oil or gas, each zone of a general structure which is completely separated from any other zone in the structure is covered by the term 'pool."' AS 31.05.170(12) Administrative Action CPAI submits that the proposed adjustment of the pool definition may be accomplished by administrative action under CO 605, Rule 12. 2. QANNIK OIL POOL HISTORY CO 605 The AOGCC defined the OOP in CO 605, dated June 30, 2008. Based on information presented by CPAI at that time, the QOP was defined to include the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 6,086' and 6,249' feet on the EWR log recorded in well CRU CD2 -11. This accumulation stratigraphically defines the oil-bearing sandstone body named Qannik. Development of the QOP Since 2008 Since formation of the QOP in 2008, 9 development wells have been completed in the QOP. Roughly 7.7 million barrels of oil have been produced from the QOP since its formation. The lands proposed in this application for exclusion from the QOP were subject to mandatory contraction from the CRU effective February 15, 2014, and with respect to the contracted lands, the leases expired at that time. 3. PROPOSED QANNIK OIL POOL Proposed New QOP Definition CPAI requests the Commission to amend CO 605 to expand the QOP area vertically from the top of the K-2 to the top of the K-3 Basal Siltstone as defined in the CD2 -11 type log (Figure 2). Although sands above the K-2 in the area of current QOP development from the CD2 drillsite show minimal thickness and a considerable amount of interbedded shales, new information shows that in areas reachable from the CD4 drillsite, the interval above the K-2 thickens and develops into reservoir quality sands and contain CPAI Application for Qannik Oil Pool Expansion February 2020 Page 3 significant levels of hydrocarbons. More detailed information about the geology, based on interpretation of drilling results, are included in confidential Attachment 1 to this application. Extending the QOP vertically to the top of the K-3 Basal Siltstone will allow for testing the producibility of the recently drilled and hydraulically fractured CD4 -499 producer. Depending on results, it could allow for future development of the QOP from CD4 pad. CPAI also requests the Commission to contract the QOP by redefining the affected area to exclude one full section of land, and part of another section of land in the southeastern corner of the QOP, as depicted in Figure 1. This is a housekeeping measure that would align the QOP with the lease position held by the CRU Working Interest Owner. This aspect of the request relates to T1 ON, R05E, and would eliminate section 4 and partially eliminate section 5. Our understanding is that the AOGCC prefers the administrative clarity of having pools match lease positions when feasible, and we support that objective with respect to the QOP. 4. QANNIK SAND DEVELOPMENT Development Plans The expansion of the QOP will extend the pool vertically to include K-3 Basal Siltstone immediately above the K-2 (Top Qannik) marker (Figure 2). CPAI's base case for planning purposes, which is subject to contingencies, provides for drilling 3-5 wells into the vertically expanded QOP from 2020 to 2023. CPAI has drilled the CD4 -499 production well as a productivity test of the Qannik reservoir in the CD4 Pad area. The well inverted at the toe to test the extent and quality of the overlying K-3 Basal Siltstone away from existing well control. 5. PROPOSED AMENDMENTS TO QANNIK OIL POOL RULES Rule 2 Pool Definition Amendment Proposal CPAI proposes the defined depth of the QOP be expanded vertically to the top of the K-3 Basal Siltstone as defined in the CD2 -11 type log. Referencing the CD2 -11 type log (Figure 2), the proposed top of the QOP is 6,030' MD. The proposed bottom of the QOP is unchanged from the existing bottom of the QOP at 6,249' MD as defined on the CD2 -11 type log. Therefore, CPAI proposes Rule 2 be amended to "The Qannik Oil Pool is the accumulation of hydrocarbons common to, and correlating with, the interval between the measured depths of 6,030' and 6,249' feet on the EWR log recorded in well CRU CD2 -11." Affected Area CPAI proposes the area subject to conservation order for the QOP be contracted so that the order applies to the following, restated lands, which differ from the existing QOP only with respect to TION, R5E: Umiat Meridian Township, Rance Sections (All unless otherwise described) T1 ON, R4E Sections 1 —4 T1 ON, R5E Section 5: N1/2NW1/4, SW1/4NW1/4, NW1/4SW1/4 Section 6 T11 N, R4E Sections 1 — 4, 9 — 16, 21 — 28, and 33 — 36 CPAI Application for Qannik Oil Pool Expansion February 2020 Page 4 T11 N, R5E Sections 4 — 9, 16 — 21, and 28 — 33 T12N, R4E Sections 1 — 4, 9 —16, 21 — 28, 33 — 36 T12N, R5E Sections 4 — 9, 16 — 21, 28 — 33 I CPAI Application for Qannik Oil Pool Expansion February 2020 Page 5 FIGURE 1: PLOT OF THE PROPOSED QANNIK OIL POOL J _ CD3 In II I' N 4 itl it a �• li h i In Qannik PA IJ It rl2Nrt4r •. eta IkSr•-. ,.._ Qannik Oil Pool --mol C.0.605 ~ �� iu INAD2 „r +,) ,a CDt , A iCDS I .t •'r 1'IINR4F. I Til Ift 2-1 IY .'.0 SI ”- I -• '-J is .r ,, CD: �� o. .4 ,C c ! �� — Existing Qannik Well „ H `L 3Y ,y ,tt - \;r, ;< Lateral CA 1 CRU Gewalt Oil Paol(CO605) `' xa i! }i N. :1 ;]S�S,y\ ® oama 01 Pod contraction ...-,..,_...__,.___.._.._... __....�.__..... .. • Well Pad Center J I . I 6 4� Ural Boundary cw,06\Tiat11tp5 n a Kaska, hc. Colville River Unit _ i Coltie •d QOil Pool Adjustment a rannik River ni I. i' In Is TIONME ••••••.... ... ; 1 2 iles vsrmao 0 CPAI Application for Qannik Oil Pool Expansion February 2020 Page 6 FIGURE 2: QANNIK AND K-3 BASAL TYPE LOG K-3 Basal Mbr 6030' MD/ -3896' TVDSS K-2/Top Qannik Base Qannik 6249' MD