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Home My WebLink About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y Anne Prysunka at 10:34 am, Oct 12, 2022 SFD 9/8/2023 2612' BJM 9/8/23 DSR-10/12/22 5HSDLU:HOO SFD 9310' SFD 9310' SFD 2612' RBDMS JSB 101422 2022-0915_Location_MikePelch-1_ksj Page 1 of 4 MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg DATE: 9/15/2022 P. I. Supervisor FROM: Kam StJohn SUBJECT: Well Inspection Petroleum Inspector Mike Pelch #1 Alaskan Crude PTD 1860070; Sundry 322-503 9/15/2022: As part of a witnessed coil tubing BOPE test (Fox CTU 8) at the Mike Pelch #1, I also inspected the well, well cellar, and surrounding pad. Starting point was an inspection done by AOGCC Inspector Jeff Jones in September 2013 when he witnessed the installation and passing test of back pressure valve in the well. Previous visits from other AOGCC Inspectors had observed bubbling in the well cellar – that had been resolved in 2013. During this inspection there was no bubbling from the cellar. Fox CTU 8 was rigged up with BOP stack on the well to remove a stuck downhole slickline tool string and sand bridge/fill. For BOPE test results, refer to AOGCC Inspection Report # bopKPS220917123125. There was some miscellaneous oilfield equipment on the property, but the location was in general not in that bad of shape. There was good access to the well. Attachments: Photos (6) 9 9 9 9 9 James B. Regg Digitally signed by James B. Regg Date: 2023.06.06 12:41:08 -08'00' 2022-0915_Location_MikePelch-1_ksj Page 2 of 4 Location Inspection – Mike Pelch #1 (PTD 1860070) Photos by AOGCC Inspector K. StJohn 9/15/2022 2022-0915_Location_MikePelch-1_ksj Page 3 of 4 2022-0915_Location_MikePelch-1_ksj Page 4 of 4 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION BOPE Test Report for: Reviewed By: P.I. Suprv Comm ________MIKE PELCH 1 JBR 10/05/2022 MISC. INSPECTIONS: FLOOR SAFTY VALVES:CHOKE MANIFOLD:BOP STACK: ACCUMULATOR SYSTEM:MUD SYSTEM: P/F P/F P/FP/FP/F Visual Alarm QuantityQuantity Time/Pressure SizeQuantity Number of Failures:0 Test went well Coil was still looking in good shape. Well condition was good, no cellar leaks or bubbling. Test Results TEST DATA Rig Rep:Terrance RaisOperator:Alaskan Crude Corporation Operator Rep:Josh Stephens Rig Owner/Rig No.:Fox 8 PTD#:1860070 DATE:9/15/2022 Type Operation:WRKOV Annular: Type Test:INIT Valves: 300/5000 Rams: 300/5000 Test Pressures:Inspection No:bopKPS220917123125 Inspector Kam StJohn Inspector Insp Source Related Insp No: INSIDE REEL VALVES: Quantity P/F (Valid for Coil Rigs Only) Remarks: Test Time 2.25 MASP: 4500 Sundry No: 322-503 Control System Response Time (sec) Time P/F Housekeeping:P PTD On Location P Standing Order Posted P Well Sign P Hazard Sec.NA Test Fluid W Misc NA Upper Kelly 0 NA Lower Kelly 0 NA Ball Type 0 NA Inside BOP 0 NA FSV Misc 0 NA 5 PNo. Valves 2 PManual Chokes 0 NAHydraulic Chokes 0 NACH Misc Stripper 1 1.75"P Annular Preventer 0 NA #1 Rams 1 Blind/Shears P #2 Rams 1 1.75 Pipe/Slip P #3 Rams 0 NA #4 Rams 0 NA #5 Rams 0 NA #6 Rams 0 NA Choke Ln. Valves 2 2" Plug P HCR Valves 0 NA Kill Line Valves 2 2" Plug P Check Valve 0 NA BOP Misc 0 NA System Pressure P2950 Pressure After Closure P2200 200 PSI Attained P2 Full Pressure Attained P10 Blind Switch Covers:Pall stations Bottle precharge P Nitgn Btls# &psi (avg)NA0 ACC Misc NA0 NA NATrip Tank NA NAPit Level Indicators NA NAFlow Indicator NA NAMeth Gas Detector NA NAH2S Gas Detector NA NAMS Misc Inside Reel Valves 1 P Annular Preventer NA0 #1 Rams P19 #2 Rams P19 #3 Rams NA0 #4 Rams NA0 #5 Rams NA0 #6 Rams NA0 HCR Choke NA0 HCR Kill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y Samantha Carlisle at 11:31 am, Aug 23, 2022 $ODVNDQ &UXGH &RUSRUDWLRQ 6WHSKDQLH %URRNH :HQDWFKHH :$ 0LNH 3HOFK IRUPDOO\ &DQQHU\ /RRS )HH /HDVH )1/ )(/ 6HF 71 5: 60 8QGHILQHG 36,6HH 6FKHPDWLF &RQGXFWRU 6XUIDFH 36, 36, ,QWHUPHGLDWH 36, 36, /LQHU 36, 36, 1 'UHVVHU 5HWULHYDEOH 3DFNHU 3DFNHU DW 0'79' 3UHVLGHQW 6LJQHG $XJXVW -LP :KLWH -LP#DSSOHFDSLWDOQHW ✔ ✔ ✔ ✔ ✔ ✔ ✔ '6U6)'%-0 5HSRUW ,QQHU $QQXOXV [ DQG 2XWHU $QQXOXV [ SUHVVXUHV RQ WKH LQGLFDWLQJ LI EOHHGLQJ WRRN SODFH EHIRUH RU DIWHU WKH SUHVVXUH UHDGLQJV ZHUH WDNHQ ; 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Do not click links or open attachments unless you recognize the sender and know the content is safe. From:jim@applecapital.net To:McLellan, Bryan J (OGC) Cc:danny.kara@outlook.com; trais@foxenergyak.com Subject:FW: Updated Coil Tubing Diagram Date:Wednesday, August 3, 2022 12:02:24 PM Attachments:Pelch Well BOP Diagram 8-3-22.pdf Hello Bryan, Thank you for calling yesterday. Attached is a revised BOP diagram from Fox Energy. Fox will be performing the work on our well. Their coil unit is currently being deployed to Beluga and the earliest date that the work can be done is in the first week of September. We will let you know when we have an exact date on when the work will commence. Let me know if you would like to be notified before we remove the back-pressure valve. Sincerely, Jim White, P.E. 509-741-7466 From: trais@foxenergyak.com <trais@foxenergyak.com> Sent: Friday, July 29, 2022 3:39 PM To: jim@applecapital.net Cc: danny.kara@outlook.com Subject: RE: Updated Coil Tubing Diagram Jim, See attached. As discussed on the phone we are looking at September 5th to the 19th as a window when our coil unit will be available. We’ll continue to work with you on schedule as we get closer and finish some of these large projects in August. Have a great weekend. Terence Rais, Owner Fox Energy Services LLC From: jim@applecapital.net <jim@applecapital.net> Sent: Friday, July 29, 2022 11:39 AM To: 'Terence Rais' <trais@foxenergyak.com> Cc: danny.kara@outlook.com Subject: RE: Updated Coil Tubing Diagram Hello Terence, Attached is a copy of the original drawing we submitted to the AOGCC for the coil tubing work. Since then, we have added a second 5000# valve to our wellhead. I need to submit a revised drawing that shows your equipment attached to our wellhead. Let me know if you need any additional help from me on coming up with a revised diagram. Thank you, Jim White, P.E. 509-741-7466 Updated Pelch Well coil tubing BOP diagram, August 3, 2022 2-7/8” Back Pressure Valve (Removed Before CT Operation) 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2. Operator Name:4. Current Well Class:5. Permit to Drill Number: Exploratory Development 3. Address:Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): Casing Collapse Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. W ell Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: Perforation Depth MD (ft): TVD BurstMDLength Size Perforation Depth TVD (ft): Tubing Size: PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 COMMISSION USE ONLY Authorized Name: Tubing Grade: Tubing MD (ft): approval: Notify Commission so that a representative may witness Sundry Number: BOP Test Mechanical Integrity Test Location Clearance ection MIT Req'd? Yes No ption Required? Yes No Subsequent Form Required: COMMISSION USE ONLY Contact Name: Contact Email: Contact Phone: Date: e: certify that the foregoing is true and the procedure approved herein will not rom without prior written approval. gnature: me: Date for 15. Well Status after proposed work: Operations:OIL WINJ WDSPL Suspended proval:Date:GAS WAG GSTOR SPLUG Representative:GINJ Op Shutdown Abandoned nts: Proposal Summary Wellbore schematic13. Well Class after proposed work: ations Program BOP Sketch Exploratory Stratigraphic Development Service SSSV Type:Packers and SSSV MD (ft) and TVD (ft): pth MD (ft):Perforation Depth TVD (ft):Tubing Size:Tubing Grade:Tubing MD (ft): quest: Abandon Plug PerforationsFracture Stimulate Reppair Well Operations shutdown Suspend Perforate Other Stimulate Pulll Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: er Casing ___________________ ame:4.Current Well Class:5. Permit to Drill Number: Exploratory Development Stratigraphic Service 6. API Number: g:8. Well Name and Number: ation or Conservation Order governs well spacing in this pool? perforations require a spacing exception?Yes No esignation (Lease Number):10. Field/Pool(s): D (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): g CollapseTVDBurstMDLengthSize PRESENT WELL CONDITION SUMMARY Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:45 am, Aug 23, 2021 Alaskan Crude Corporation 2214 Stephanie Brooke, Wenatchee, WA 98801 186-007 50-133-20333-90-00 Mike Petch #1 (formally Cannery Loop #2) Fee Lease 1481' FNL, 863 FEL, Sec. 2, T5N, R11W, SM Undefined 10731'10731'10700'10700'4500 PSI See Schematic Conductor 93' 20" 93' 93' Surface 2586' 13-3/8" 2612' 2612' 3090 1540 Intermediate 8100' 9-5/8" 8100' 8100' 6870 4750' Production Liner 3093' 7" 7691'-10730' 7691'-10730' 8160 8160 9256'-9310'9256'-9310' 2-7/8" 4.6#N-80 9030; 2-7/8" Dresser Retrievable Packer Packer at 9000' MD/TVD 05/02/2022 James A. White President August 23, 2021 James A. White jim@applecapital.net 509-741-7466 ✔ ✔ ✔ ✔ ✔ ✔ ✔ Pelch 321-413 X SFD 8/23/2021 5500'- 5520', Report Inner Annulus (2-7/8" x 9-5/8") and Outer Annulus (9-5/8" x 13-3/8") pressures on the 10-404, indicating if bleeding took place before or after the pressure readings were taken. DSR-8/23/21 5500'- 5520', CT BOP test to 5000 psi is required. Provide 24 hrs notice for AOGCC to witness test. This Sundry does not allow flow testing or regular production from the well. BJM 9/1/21 dts 9/1 2021 JLC 9/2/2021 Jeremy Price Digitally signed by Jeremy Price Date: 2021.09.02 10:18:48 -08'00' RBDMS HEW 9/2/2021 10-404 Existing perforations between 5500' and 5520' MD / TVD are also open, but they are currently isolated by a retrievable packer. SFD 8/23/2021 SKDESCRIPTIONPART NUMBERQTYITEMBOP 5K 4" R39 Tandem BodyPM678UU017011RKAC 4-1/16" Hydraulic Integral Lug Lock AM677UU001222RKAC 10K 4.06" Locking Lug Hydraulic Shear RamAM677UU001323BOP Bumper 5K 5" Tandem PM678UU014124AC Quick Lock Mounting RodPM678UU017785RKBOP VALVE Right EqualizingAM678UU008926RKBOP Face Bleed-off valve w/ 1/2" NPT AM678UU026027RKBOP VALVE Left EqualizingAM678UU008528BOP 5K 5" Tandem Equalizing TubePM678UU014229AC 10K 4.06" LockPM677UU01338101" Clevis Pin ShacklePM810UU0589211Cap Screw 5/16-18 UNC x 1.75"PM951SB031-18-1752412Cap Screw 3/4-10 UNC x 2.25" SSPM951SB075-10-2258137739 Edgar Industrial WayRed Deer, AlbertaCanada T4P 3R2Ph # (403) 346-4487Unless Otherwise Indicated: All Dimensions in Inches. 125 rms Finish Min.Weight:ofDrawing:Checked By:Exclusive Property Of Lee Specialties Considered Confidential And May Not Be Copied Or Reproduced Without Written Consent Of Lee Specialties LimitedCheck Date:Drawn By:Designer:Date:Sheet:REVISION HISTORYREV. DESCRIPTION DATE APPROVEDRevision:5K 4 1/16" Blowout Preventer2 AM678UU0109-XXXXBOP 5K 4" R39 Tandem Hydraulic1 CR 4/24/20132RSS 8/18/2004N/A1Replaced PM678/72 with PM678/1771/15/2009 JS2 ECN14-171:Actuator WP&TP were 2500 & 3750 4/29/2014 NHStatus: ReleasedAM678UU0109-XXXXAppr'd By:CRApproved Date:4/24/2013RSSREV 2MaterialSpec:ProcessSpec:WP 5K TP 10K x.xx B0.01 Fractional Tolerances: B1/16Decimal Tolerances: x.xxx B0.005 Concentricity: 0.005 TIRLee Rev 9Lee SpecialtiesACCESSORIES:1. SEAL KIT, P/N: AM678RK01092. BOP VALVE RATCHET WRENCH P/N: PM683UU00483. ACTUATOR LOCK-IN HANDLE P/N: PM683UU00654. BOP BRIDLE HOSE: P/N: AM683UU0008-Q1; QTY=25. BOP STANDP/N: AM683UU0062;6. ACTUATOR END CAP WRENCHP/N: AM683UU0019;7. R39 FLANGE-R39 RING GASKET, P/N: PM936SD0008; QTY=2-R39 FLANGE STUDS 1-1/4-8UN X 5.5" LONG;P/N: PM936B7M125550; QTY=8-R39 FLANGE STUDS 1-1/4-8UN X 8" LONG;P/N: PM936B7M125800; QTY=8-R39 FLANGE NUTS 1-1/4 -8UN;P/N: PM9362HM125; QTY=248. R24 FLANGE-R24 RING GASKET, P/N: PM936SD0002; QTY=2-R24 FLANGE STUDS, 7/8 -9UNC X 4" LONG;P/N: PM936B7M0875400; QTY=16-R24 FLANGE NUTS, 7/8 -9UNCP/N: PM9362HM0875; QTY=169.HAMMER WRENCHES-P/N: PM936HW0875;-P/N: PM936HW1250;10. R24 FLANGE ADAPTER TO 2" FIG 1502 P/N: PM686UU0044TEST INSTRUCTIONS:1. ASSEMBLE ALL COMPONENTS LISTED IN PARTSLIST INCLUDING THE ITEMS BELOW:-R39 TEST FLANGE, P/N:PM686UU0291;-R24 BLIND FLANGE, P/N: PM686UU0379;2. FOLLOW PRESSURE TEST PROCEDURE W.I. 44.0AND THE FUNCTION TEST PROCEDURE W.I. 29.03. ACTUATOR HYDRAULIC PRESSURES:WORKING PRESSURE=3,000 PSITEST PRESSURE = 4, 500 PSI4. HYDRAULIC VOLUME PER ACTUATOR:-AM677UU0012 : 1.9 L-AM677UU0013 : 2.9 LAPI R24 FLANGE API R39 FLANGE - OPENNOTE:"XXXX" IN THE PART NUMBER REPRESENTS THETUBING SIZE IN THOUSANDTHS OF AN INCH.2CT SIZEXXXX1" 10001.25" 12501.50" 15001.75" 17501.90" 19002"20002.063" 20632.375" 2375RAM BLOCK PART NUMBERFUNCTIONRAM BLOCK P/NACTUATOR P/NPIPE SEAL AM677UU0067-XXXX AM677UU0012PIPE-SLIP COMBI AM677UU0027-XXXX AM677UU0012SLIP AM677UU0086-XXXX AM677UU0012SHEAR-BLIND COMBI AM677UU0026-A/B AM677UU0013API R39 FLANGE-STUDDED443211111310698681271512 Surface casing: 13-3/8" 61# K-55 2612’ md/tvd Cemented to surface KBE: 80.6' GL: 53.5' Conductor 20", 94#, H-40 93’ 9-5/8" Casing 47# L-80 BTC, 8100’ md/tvd 7" Liner top packer/hanger, 7691’ md/tvd Liner: 7", 29# N-80,10,730’ md/tvd Cemented to TOL 9990’ md/tvd TOC Current PBTD Sqz’d perfs below TOC/PBTD: 10,040’ - 10,060’md/tvd 10,230’ - 10,240’md/tvd Mike Pelch PTD 186-007 Existing Conditions Perfs: 9152’ - 9164’ md/tvd, Sqz’ed 9256’ - 9276’ md/tvd, Open 9300’ - 9310’ md/tvd, Open Perfs: 8502’ - 8513’ md/tvd, Sqz’ed Perfs: 7288’ - 7314’ md/tvd, Sqz’ed 7642’ - 7654’ md/tvd, Sqz’ed Perfs: 5740’ - 5756’ md/tvd, Sqz’ed 5770’ - 5780’ md/tvd, Sqz’ed 5800’ - 5818’ md/tvd, Sqz’ed 5868’ - 5882’ md/tvd, Sqz’ed 5937’ - 5939’ md/tvd, Sqz’ed 5942’ - 5958’ md/tvd, Sqz’ed 5964’ - 5966’ md/tvd, Sqz’ed Perfs: 5420’ - 5440’ md/tvd, Sqz’ed 5500’ - 5520’ md/tvd, Open 2-7/8" x 7" Retrievable packer, 9000’ md/tvd 2-7/8" tubing tail, 9030’ md/tvd BPV installed in 2-7/8" tubing hanger Full wellhead/tree installed. Inner annulus pressure monitored continuously w/ remote data transmittal. Motion activated cameras monitoring well/location. Fill/WL fish @ ~6000’ ? 2-7/8" 6.4# N-80 tubing 2-7/8” Back Pressure Valve (Removed Before CT Operation) Vent 25.5’ FISH From:McLellan, Bryan J (CED) To:Carlisle, Samantha J (CED) Subject:Mike Pelch 1 Sundry 321-344 Date:Wednesday, September 1, 2021 1:54:42 PM Sam, Sundry 321-413 was meant to replace Sundry 321-344. Please withdraw Sundry 321-344. Thanks Bryan McLellan Senior Petroleum Engineer Alaska Oil & Gas Conservation Commission 333 W 7th Ave Anchorage, AK 99501 Bryan.mclellan@alaska.gov +1 (907) 250-9193 RBDMS HEW 9/2/2021 1. Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Exploratory Development 3. Address: Stratigraphic Service 6. API Number: 7. If perforating:8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception? Yes No 9. Property Designation (Lease Number): 10. Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): Casing Collapse Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 12. Attachments: Proposal Summary Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15. Well Status after proposed work: Commencing Operations: OIL WINJ WDSPL Suspended 16. Verbal Approval: Date: GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Comm. Comm. Sr Pet Eng Sr Pet Geo Sr Res Eng Authorized Title: 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: Perforation Depth MD (ft): TVD BurstMDLength Size Perforation Depth TVD (ft): Tubing Size: PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 COMMISSION USE ONLY Authorized Name: Tubing Grade: Tubing MD (ft): approval: Notify Commission so that a representative may witness Sundry Number: BOP Test Mechanical Integrity Test Location Clearance ection MIT Req'd? Yes No ption Required? Yes No Subsequent Form Required: COMMISSION USE ONLY Contact Name: Contact Email: Contact Phone: Date: e: certify that the foregoing is true and the procedure approved herein will not rom without prior written approval. gnature: me: Date for 15. Well Status after proposed work: Operations:OIL WINJ WDSPL Suspended proval:Date:GAS WAG GSTOR SPLUG Representative:GINJ Op Shutdown Abandoned nts: Proposal Summary Wellbore schematic13. Well Class after proposed work: ations Program BOP Sketch Exploratory Stratigraphic Development Service SSSV Type:Packers and SSSV MD (ft) and TVD (ft): pth MD (ft):Perforation Depth TVD (ft):Tubing Size:Tubing Grade: Tubing MD (ft): quest: Abandon Plug Perforations Fracture Stimulate Reppair Well Operations shutdown Suspend Perforate Other Stimulate Pulll Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: er Casing ___________________ ame:4. Current Well Class:5. Permit to Drill Number: Exploratory Development Stratigraphic Service 6. API Number: g:8. Well Name and Number: ation or Conservation Order governs well spacing in this pool? perforations require a spacing exception?Yes No esignation (Lease Number): 10. Field/Pool(s): D (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): g CollapseTVD BurstMDLengthSize PRESENT WELL CONDITION SUMMARY Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:27 am, Jul 13, 2021 321-344 Alaskan Crude Corporation 2214 Stephanie Brooke, Wenatchee, WA 98801 186-007 50-133-20333-90-00 Mike Petch #1 (formally Cannery Loop #2) Fee Lease 1481' FNL, 863 FEL, Sec. 2, T5N, R11W, SM Undefined 10731'10731'10700'10700'4500 PSI See Schematic Conductor 93' 20" 93' 93' Surface 2586' 13-3/8" 2612' 2612' 3090 1540 Intermediate 8100' 9-5/8" 8100' 8100' 6870 4750' Production Liner 3093' 7" 7691'-10730' 7691'-10730' 8160 8160 9256'-9310'9256'-9310' 2-7/8" 4.6#N-80 9030; 2-7/8" Dresser Retrievable Packer Packer at 9000' MD/TVD 08/10/2021 James A. White President James A White July 12, 2021 James A. White jim@applecapital.net 509-741-7466 ✔ ✔ ✔ ✔✔ ✔ NA DLB DLB 07/13/2021 BJM 7/21/21 10-404 CT X Pelch BJM DSR-7/13/21 This Sundry does not allow flow testing or regular production from the well. bjm X CT BOP test to 5000 psi is required. Provide 24 hrs notice for AOGCC to witness test. This Sundry includes the scope and conditions of Sundry #320-332, extending the Sundry expiration date for that workscope. xccep by:COMMMISSION ptiotion Requuireired? Yes No Subsequenent Formrm RequXXXXEx by: COMMISSIONN quEx by:COMMISSIONN qu BOPE diagram required Provide 24 hrs notice for AOGCC to witness BOP test. bjm This Sundry does not allow flow testing or regular production from the well. bjm 1.Type of Request: Abandon Plug Perforations Fracture Stimulate Repair Well Operations shutdown Suspend Perforate Other Stimulate Pull Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: ___________________ 2. Operator Name:4.Current Well Class:5.Permit to Drill Number: E xploratory Development 3.Address: Stratigraphic Service 6.API Number: 7.If perforating:8.W ell Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Will planned perforations require a spacing exception?Yes No 9. Property Designation (Lease Number):10.Field/Pool(s): 11. Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): Casing Collapse Packers and SSSV Type:Packers and SSSV MD (ft) and TVD (ft): 12.A ttachments: Proposal Summary Wellbore schematic 13.W ell Class after proposed work: Detailed Operations Program BOP Sketch Exploratory Stratigraphic Development Service 14. Estimated Date for 15.W ell Status after proposed work: Commencing Operations:OIL WINJ WDSPL Suspended 16.Verbal Approval:Date:GAS WAG GSTOR SPLUG Commission Representative: GINJ Op Shutdown Abandoned Contact Name: Contact Email: Contact Phone: Date: Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integrity BOP Test Mechanical Integrity Test Location Clearance Other: Post Initial Injection MIT Req'd? Yes No Spacing Exception Required? Yes No Subsequent Form Required: APPROVED BY Approved by:COMMISSIONER THE COMMISSION Date: Comm.Comm.Sr Pet Eng Sr Pet Geo Sr Res Eng Authorized Title: 17.I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Signature: Perforation Depth MD (ft): TVD BurstMDLength Size Perforation Depth TVD (ft): Tubing Size: PRESENT WELL CONDITION SUMMARY STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 COMMISSION USE ONLY Authorized Name: Tubing Grade: Tubing MD (ft): approval: Notify Commission so that a representative may witness Sundry Number: BOP Test Mechanical Integrity Test Location Clearance ection MIT Req'd? Yes No ption Required? Yes No Subsequent Form Required: COMMISSION USE ONLY Contact Name: Contact Email: Contact Phone: Date: e: certify that the foregoing is true and the procedure approved herein will not rom without prior written approval. gnature: me: Date for 15.W ell Status after proposed work: Operations:OIL WINJ WDSPL Suspended proval:Date:GAS WAG GSTOR SPLUG Representative:GINJ Op Shutdown Abandoned nts: Proposal Summary Wellbore schematic13.W ell Class after proposed work: ations Program BOP Sketch Exploratory Stratigraphic Development Service SSSV Type:Packers and SSSV MD (ft) and TVD (ft): pth MD (ft):Perforation Depth TVD (ft):Tubing Size:Tubing Grade:Tubing MD (ft): quest: Abandon Plug Perforations Fracture Stimulate Reppair Well Operations shutdown Suspend Perforate Other Stimulate Pulll Tubing Change Approved Program Plug for Redrill Perforate New Pool Re-enter Susp Well Alter Casing Other: er Casing ___________________ ame:4.Current Well Class:5.Permit to Drill Number: Exploratory Development Stratigraphic Service 6. API Number: g:8.W ell Name and Number: ation or Conservation Order governs well spacing in this pool? perforations require a spacing exception?Yes No esignation (Lease Number):10. Field/Pool(s): D (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi):Plugs (MD):Junk (MD): g CollapseTVDBurstMDLengthSize PRESENT WELL CONDITION SUMMARY Form 10-403 Revised 3/2020 Approved application is valid for 12 months from the date of approval. By Samantha Carlisle at 8:08 am, Aug 11, 2020 320-332 Alaskan Crude Corporation 10011 Villa Lea Lane, Houston, Texas 77071 186-007 50-133-20333-00-00 Mike Petch #1 (formally Cannery Loop #2) 1481' FNL, 863' FEL, Sec 2, T5N, R11W, SM 10731'10731'10700'10700'4500 PSI See Schematic Structural Conductor 93' 20" 93' 93' Surface 2586' 13-3/8" 2612' 2612' 3090 1540 Intermediate 8100' 9-5/8" 8100' 8100' 6870 4750 Production Liner 3039' 7" 7691'-10730' 7691'-10730' 8160 8160 9256'-9310'9256'-9310' 2-7/8" 4.6#N-80 9030' 2-7/8" x 7" Dresser Retrievable Packer Packer at 9000' MD/TVD 05/01/2021 James W. White President August 10, 2020 James W. White jim5thgn@gmail.com 907-394-9148 ✔ ✔ ✔ ✔✔ ✔ SFD 8/11/2020 SFD 8/11/2020 SFD 8/11/2020 SFD 8/11/2020 50-133-20333-90-00 SFD 8/11/2020 Fee Lease DSR-8/11/2020 SFD 8/11/2020 SFD 8/11/2020 MGR13AUG20 10-404 Comm q 8/14/2020 JLC 8/14/2020 RBDMS HEW 8/17/2020 To: Alaska Oil & Gas Conservation Commission Fax: (907) 276-7542 Date: August 7, 2020 From: Jim White Alaska Crude Corporation Subject: Mike Pelch #1 Revised Application for Sundry Approval PTD 186-007 API #50-133-20333-00 Due to a force majeure event caused by the COVID-19 pandemic, we hereby request an extension of Alaskan Crude’s August 11, 2019 approved Sundry application. The following work is expected to be completed by August 20, 2021. Reenter the Mike Pelch #1 well to remove a fish and a sand bridge/fill from the 2-7/8” tubing. Below please find a summary of the existing well and planned operations: Mike Pelch #1 (formally the Union Oil Cannery Loop #2) is located 1481 feet from the north line (FNL) and 863 feet from the east line (FEL) of Section 2, T5N, R11W, Seward Meridian. The well site is located on private property. The well’s ground elevation is 53.5 feet. There are open perforations at 9256’-9276’ and 9300’-9310’ md. 2-7/8” N-80 tubing was run with a retrievable packer set at 9000’ md. Attempts were made to test this interval when he well sanded up. Currently there is sand bridge in the 2-Ǭ” tubing below approximately 6625’. Successful attempts have been made with wireline to bail the fill. Ultimately a slickline tool string became stuck in hole with the top of fish is at ~6602’ md. A BPV is installed in the tubing hanger profile. Plans are to reenter the wellbore with braided line to remove the fish and commence using slickline to bail fill. All equipment will be rated to 5000 psi working pressure. Proposed Rig Operations: 1. Service/grease tree/wellhead valves. Pressure test tree valves to 5000 psi. 2. RU and PT lubricator to 5000 psi. Pull BPV. 3. Blow down gas pressure from tubing. 4. Mobilize braided line unit. RU WL BOPs, lubricator, and braided line pressure control. MU enough lubricator to accommodate the fishing tools plus a retrieved fish w/open spang/jar 5. Pressure test to 300psi/5000 psi. 6. RIH with SL tools and commence fishing (1-3/4” rope socket fishing neck). 7. Once fish is removed, RD braided line, RU slickline. 8. Bail fill with slickline – fully lubricated, keeping well full of brine. 9. Intent is to clean the tubing/liner sufficiently enough to enhance the flow from the well. 50-133-20333-90-00 SFD 8/11/2020 Surface casing: 13-3/8" 61# K-55 2612’ md/tvd Cemented to surface KBE: 80.6' GL: 53.5' Conductor 20", 94#, H-40 93’ 9-5/8" Casing 47# L-80 BTC, 8100’ md/tvd 7" Liner top packer/hanger, 7691’ md/tvd Liner: 7", 29# N-80,10,730’ md/tvd Cemented to TOL 9990’ md/tvd TOC Current PBTD Sqz’d perfs below TOC/PBTD: 10,040’ - 10,060’md/tvd 10,230’ - 10,240’md/tvd Mike Pelch PTD 186-007 Existing Conditions Perfs: 9152’ - 9164’ md/tvd, Sqz’ed 9256’ - 9276’ md/tvd, Open 9300’ - 9310’ md/tvd, Open Perfs: 8502’ - 8513’ md/tvd, Sqz’ed Perfs: 7288’ - 7314’ md/tvd, Sqz’ed 7642’ - 7654’ md/tvd, Sqz’ed Perfs: 5740’ - 5756’ md/tvd, Sqz’ed 5770’ - 5780’ md/tvd, Sqz’ed 5800’ - 5818’ md/tvd, Sqz’ed 5868’ - 5882’ md/tvd, Sqz’ed 5937’ - 5939’ md/tvd, Sqz’ed 5942’ - 5958’ md/tvd, Sqz’ed 5964’ - 5966’ md/tvd, Sqz’ed Perfs: 5420’ - 5440’ md/tvd, Sqz’ed 5500’ - 5520’ md/tvd, Open 2-7/8" x 7" Retrievable packer, 9000’ md/tvd 2-7/8" tubing tail, 9030’ md/tvd BPV installed in 2-7/8" tubing hanger Full wellhead/tree installed. Inner annulus pressure monitored continuously w/ remote data transmittal. Motion activated cameras monitoring well/location. Fill/WL fish @ ~6000’ ? 2-7/8" 6.4# N-80 tubing THE STATE °fALASKA GOVERNOR MIKE DUNLEAVY James White President Alaskan Crude Corporation 10011 Villa Lea Lane Houston, TX 77071 Re: Exploratory Field, Exploratory Pool, Mike Petch 1 Permit to Drill Number: 186-007 Sundry Number: 319-378 Dear Mr. White: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaslka.gov Enclosed is the approved application for the sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this 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. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, i�2,e� Daniel T. Seamount, Jr. Commissioner DATED this I 6day of August, 2019. RBDMSLNUG 2 12019 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION AUG 16 2019 APPLICATION FOR SUNDRY APPROVALS A;;,+�p�g��^ 20 AAC 25.280 AE �S. 11. aQ 1. Type of Request: Abandon ❑ Plug Perforations ❑ Fracture Stimulate ❑ Repair Well 0 - Operations shutdown ❑ Suspend ❑ Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program ❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Alaskan Crude Corporation Exploratory ❑ Development 0 • Stratigraphic Service El 186-007 3. Address: 6. API Number: 10011 Villa Lea Lane, Houston, Texas 77071 50-133-20333 �r��C'U- • I� 7. If perforating: 8. Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? Mike Petch #1 (formally Cannery Loop #2) Will planned perforations require a spacing exception? Yes ❑ No ❑ 9. Property Designation (Lease Number): `Q�_ r., 44 10. Field/Pool(s): 1481' FNL, 863' FEL, Sec 2, T5N, R11 W, SM /jAS f-11' .1 y Explorator 11. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD: Effective Depth TVD: MPSP (psi): Plugs (MD): Junk (MD): 10731' • 10731' • 10700' 10700' 4500 PSI See Schematic Casing Length Size MD TVD Burst Collapse Structural Conductor 93' 20" 93' 93' Surface 2586' 13-3/8" 2612' 2612' 3090 1540 Intermediate 8100' 9-5/8" 8100' 8100' 6870 4750 Production Liner 3039' 7" 7691'-10730' 7691'-10730' 8160 7030 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 9256'-9310' 9256'- 9310' 2-7/8" 4.6# N-80 9030' Packers and SSSV Type: Packers and SSSV MD (ft) and TVD (ft): 2-7/8" x 7" Dresser Retrievable Packer at 9000' MD/TVD 12. Attachments: Proposal Summary 0 Wellbore schematic 13. Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory ❑ Stratigraphic ❑ Development ❑' Service ❑ 14. Estimated Date for 17 -Aug -19 15. Well Status after proposed work: Commencing Operations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended ❑ GAS ❑� WAG ❑ GSTOR ❑ SPLUG ❑ 16. Verbal Approval: Date: Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. 1 hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written ap roval. Authorized Name: Jam hite. Contact Name: lames W. White Authorized Title: President Contact Email: 'ir115th n mail.COm Contact Phone: 907-394-9148 Authorized Si ature: ate: 11 COMMISSIPIN USE ONLY Cond" - approval: Notify Commission so that a representative may witness Sundry Number: ;101 l ✓7UX L Plug Integrity F-1BOP Test ❑ Mechanical Integrity Test E]Location Clearance ❑ Other: '' //GG // RBDMS� AUG 2 Post Initial Injection MIT Req'd? Yes ❑ No ❑ 1 2019 Spacing Exception Required? Yes ❑ No Subsequent Form Required: V- 76 APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: '�I� (R� !"N"'Willi� i�r7 Submit Form and Farm i avised 4/2017 Approved application i I 1 o t rAAlf ttiLdate of apploval. Attachments in Duplicate 8ict To: Alaska Oil & Gas Conservation Commission Date: August 11, 2019 From: Jim White Alaska Crude Corporation Subject: Mike Pelch #1 Application for Sundry Approval PTD 186-007 API #50-133-20333-00 Sundry approval is requested to reenter the Mike Pelch #1 well to remove a fish and a sand bridge/fill from the 2-7/8" tubing. We anticipate beginning work as soon as possible. Below please find a summary of the existing well and planned operations: Mike Pelch #1 (formally the Union Oil Cannery Loop #2) is located 1481 feet from the north line (FNL) and 863 feet from the east line (FEL) of Section 2, T5N, R 1 W, Seward Meridian. The well site is located on private property. The well's ground elevation is 53.5 feet. There are open perforations at 9256'-9276' and 9300'-9310' md. 2-7/8" N-80 tubing was run with a retrievable packer set at 9000' md. Attempts were made to test this interval when he well sanded up. Currently there is sand bridge in the 2-%" tubing below approximately 6625'. Successful attempts have been made with wireline to bail the fill. Ultimately a slickline tool string became stuck in hole with the top of fish is at ---6602' md. A BPV is installed in the tubing hanger profile. Plans are to reenter the wellbore with braided line to remove the fish and commence using slickline to bail fill. All equipment will be rated to 5000 psi working pressure. Proposed Ria Operations: 1. Service/grease tree/wellhead valves. Pressure test tree valves to 5000 psi.' 2. RU and PT lubricator to 5000 psi. Pull BPV. 3. Blow down gas pressure from tubing. 4. Mobilize braided line unit. RU WL BOPS, lubricator, and braided line pressure control. MU enough lubricator to accommodate the fishing tools plus a retrieved fish w/open spang/jar 5. Pressure test to 300psi/5000 psi. 6. RIH with SL tools and commence fishing (1-3/4" rope socket fishing neck). 7. Once fish is removed, RD braided line, RU slickline. S. Bail fill with slickline — fully lubricated, keeping well full of brine. 9. Intent is to clean the tubing/liner sufficiently enough to enhance the flow from the well. KBE:Mike Pelch PTD 186-007 GL: 53.5'.5' Existing Conditions BPV installed in 2-7/8" tubing hanger Full wellhead/tree installed. Inner annulus pressure monitored continuously w/ remote data transmittal. Motion activated cameras monitoring well/location. 2-7/8" 6.4# N-80 tubing Fill/WL fish @ -6000' 7" Liner top packer/hanger, 7691' and/tvd 9-5/8" Casing 47# L-80 BTC, 8100' and/tvd 2-7/8" x 7" Retrievable packer, 9000' and/tvd 2-7/8" tubing tail, 9030' and/tvd Conductor 20", 94#, H-40 93' Surface casing: 13-3/8" 61# K-55 2612' and/tvd Cemented to surface Perfs: 5420'- 5440' and/tvd, Sqz'ed 5500'- 5520' and/tvd, Open Perfs: 5740'- 5756' and/tvd, Sqz'ed 5770' - 5780' and/tvd, Sqz'ed 5800' - 5818' and/tvd, Sqz'ed 5868'- 5882' and/tvd, Sqz'ed 5937' - 5939' and/tvd, Sqz'ed 5942' - 5958' and/tvd, Sqz'ed 5964'- 5966' and/tvd, Sqz'ed Perfs: 7288'- 7314' and/tvd, Sqz'ed 7642'- 7654' and/tvd, Sqz'ed Perfs: 8502' - 8513' and/tvd, Sqz'ed Pers: 9152' - 9164' and/tvd, Sqz'ed 9256'- 9276' and/tvd, Open 9300' - 9310' and/tvd, Open Sqi d perfs below TOC/PBTD: L 9990' and/tvd TOC •? S{fti.ti•ti;{{:;:; 10,040' - 10,060' and/tvd Current PBTD {'r'f'f'r 10,230'- 10,240' and/tvd _ ti:1:1s:� Liner: 7", 29# N-80,10,730' and/tvd Cemented to TOL Carlisle, Samantha J (DOA) , I f1 lL 6,7 c From: Schwartz, Guy L(DOA) Sent: Tuesday,April 03, 2018 1:06 PM To: Carlisle, Samantha J (DOA) Cc: Colombie,Jody J (DOA) Subject: FW:Annual Report for Alaska Crude Corporation (ACC)Wells Attachments: Idle well spreadsheet.xlsx; Pelch Well Status Report 4-1-2018.pdf Can we get these in the operator file please?? Guy Schwartz Sr. Petroleum Engineer AOGCC ScA4016 907-301-4533 cell 907-793-1226 office 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 AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226 ) or (Guy.schwartz@alaska.gov). Original Message From: Jim White, P.E. <jim@applecapital.net> Sent: Tuesday, April 03, 2018 11:27 AM To: Schwartz, Guy L (DOA) <guy.schwartz@alaska.gov> Cc: 'Jim White' <jim4thgn@gmail.com>;jim@applecapital.net Subject: RE: Annual Report for Alaska Crude Corporation (ACC) Wells Hello Guy, Attached is a copy of the annual report for the Pelch Well that is operated by Alaskan Crude Corporation. Please feel free to contact me if you have any questions. Jim W. White President Alaskan Crude Corporation 10011 Villa Lea Lane Houston, Texas 77071 Phone: 907-394-9148 (Mobile), 281-888-7856 (Home) Email:jim4thgn@gmail.com and jim@applecapital.net Original Message From: Schwartz, Guy L (DOA) [mailto:guy.schwartz@alaska.gov] Sent: Thursday, March 15, 2018 11:56 AM To: Jim White, P.E. <jim@applecapital.net> Cc: 'Jim White' <jim4thgn@gmail.com> Subject: RE: Annual Report for Alaska Crude Corporation (ACC) Wells Below is link to our regulations. http://doa.alaska.gov/ogc/links/regulations.html 1 Attached are the idle (for SI status wells) and suspended well spreadsheets to fill out and return to us for long term shut in wells Guy Schwartz Sr. Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office 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 AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at (907-793-1226 ) or (Guy.schwartz@alaska.gov). Original Message From: Jim White, P.E. <jim@applecapital.net> Sent: Wednesday, March 14, 2018 4:50 PM To: Schwartz, Guy L (DOA) <guy.schwartz@alaska.gov> Cc: 'Jim White' <jim4thgn@gmail.com> Subject: Annual Report for Alaska Crude Corporation (ACC) Wells Hello Guy, It is my understanding that the AOGCC would like to receive annual reports on the various wells that Alaskan Crude Corporation is currently designated as operator. I could not find an annual well report form for shut-in and suspended wells on the AOGCC web site. If there is such a form could you please send me a copy so that we may complete it and timely return it to your office. If there is not a standard form for these types of wells, please send me a description of the information that the AOGCC is requesting. Also, many years ago, the AOGCC used to publish a bound document of all current AOGCC regulations. I have looked on the AOGCC web site and have made a general web search, but have not been able to find an official copy of the AOGCC's current regulations. If you have access to them, could you please email me either a link or PDF version of the current AOGCC regulations, or send me a copy through regular U.S. mail to James W. White, Alaskan Crude Corporation, 10011 Villa Lea Lane, Houston, Texas 77071. Thank you, Jim White 2 • O t 0b.10 The Pelch well was shut in and suspended when the back-pressure valve was installed in May 2013 by Cameron. Mr.Jim Regg,the supervisor of petroleum inspections for the AOGCC,witnessed the installation of this back pressure valve in 2013. Real time pressure monitoring equipment that allows the annulus pressure to be continuously monitored remotely was installed in the summer of 2017. Since 1990,the Pelch well has been prohibited by the AOGCC Order 277, pursuant to AS 31.05.100,from producing until the AOGCC has duly integrated all the various owners of correlative rights located in the 640 acre gas drilling unit created and established by AOGCC Order 277 pursuant to AS 31.05.100. This AOGCC Order 277, along with Judge Hopwood's opinion,were issued in 1990 creating this 640 acre gas drilling unit. The various owners of correlative rights have not yet agreed to voluntarily integrate their correlative rights.The AOGCC has not duly voluntarily or involuntarily integrated the interest of the various owners in the 640 acre gas drilling unit. Without integration of the various owners'interests,Alaskan Crude,as operator, has no legal basis to assess prorated cost to the various owners of various size correlative rights for each owner's costs associated with an AFE for any well cost incurred by the operator,Alaskan Crude Corp. HISTORY In 1988, Peninsula Pipeline Company and the City of Anchorage entered into an open-ended 20-year gas supply contract that would commence at the date that Peninsula Pipeline Company began delivering gas to the City of Anchorage. This contract with the City of Anchorage did not require that Peninsula Pipeline Company must begin delivering gas be a date certain.The 20-year contract span simply would begin when Peninsula Pipeline Co.first began delivering gas at price much cheaper than Enstar was currently charging the City of Anchorage for gas being delivered to the city's new power plant. Peninsula Pipeline immediately began the process to get required pipeline permits from the state of Alaska and the US Corps of Engineers to construct the new 4-mile pipeline from the Pelch well to Enstar pipeline to Anchorage. Permits to construct and connect this 4-mile pipeline from the Pelch well to the Enstar pipeline to Anchorage were quickly approved bythe state and Corps of engineers. ppg 1989 Peninsula Pipeline Co immediately bought four miles of 4"coated pipe from a dealer in Houston. Peninsula Pipeline had this 4" line pipe loaded into railroad gondola and shipped it by rail to the railroad's yard in Anchorage This railroad gondola containing the four miles of 4"coated pipe languished for a long time in the rail road yard in Anchorage because the Alaska Public Utility Commission (APUC) maintained the City of Anchorage did not have authority to cut a contract to buy gas absent any absent APOC approval. This argument of the APUC trying to control and regulate who the City of Anchorage must buy gas from looked like it might take a very long time for this matter to be sorted out. Peninsula Pipe Company after an extended amount of time then shipped the four miles of 4" line pipe out of Alaska back to Houston. At the end of the day,the City of Anchorage prevailed as it was later determined that the City of Anchorage did have authority to buy gas from whom ever it chose to for terms unilaterally agreed to by the city. • • In the early 1990's Mayor Tom Fink and his manager of ML&P, Mr.Tom Starr cut a deal with Shell Oil Co. where the city of Anchorage bought out all of Shell's interest(33.33%) in the Beluga Gas Field.The city now owned one third of all the gas produced from the Beluga gas field thru today.This of course went a long way in solving the city's need for gas. 1989 Alaskan Crude Corp began the process to petition to have the AOGCC create a 640 acre gas drilling unit for the Pelch well. 1990 the AOGCC issued order 277 and Order 277 along with Judge Hopwood's opinion to Alaskan Crude Corp created the existing 640 acre gas drilling unit for the Pelch well. Knowing that Alaskan Crude could not get an agreement from all mineral interest owners owning land in this new 640 gas drilling unit AOGCC Order required that the Pelch well would not be allowed to produce the well until AOGGCC had duly integrated the all owners correlative rights in the Pelch drilling unit pursuant to AS 31.05-100. Alaskan Crude Corp.and James W.White,et al, has not been able to sell its gas with terms and price acceptable James W.White. The Pelch well is sanded in but is still capable producing gas at rate that is acceptable to White who owns the Pelch well and fee surface 40 acres and all oil and gas beneath this 40 acre surface where the well is located. This is all privately owned land.This land is not owned by the state of Alaska. Many of the rules applicable to state owned government land do not apply to privately owned fee land. Please note that a huge portion of the land that is incorporated in the City of Anchorage is also fee owned property that includes the oil and gas beneath this land. Those that own a house in Anchorage are highly likely to also own all the oil and gas beneath their house. Please further note that lands in the lower 48 with oil and gas potential no greater than Anchorage have fetched lease payments in excess of $50,000 an acre. • • N C 1) 4+ E s 0 N U C C y W oa`, L_ 0 W O C r - i y Q (5 3 — • C. o a d 4-N c 2. O co a) E a) C) m m o 0 o M CA z N N 0 I O L •L n O 9 • z co a, E z o a w c 0 L - O m }' o i 2- d o C. O a) V 2 0 c co Y CO Q i I a) a m .► z z m - a) a) G C L .a 0 is 7 o a J .N U c5 N a) 0) 0 z } c.O N e = _ i =� L 2 w N ob N 0 C O O R 0 2-0° O v I- U C m y f6 Q • I s Z z m u w c m 0, l0 V d 10 •a d 0" Z- 5 Z z C d L• w d a o O E o c c) 1-• Z a) CL z co a O N c V d 0 d v aa -- z z = � d c 0 L 2- 0. 0 O c, V 2 L 0 c co N f6 S S Cl) @ 0 o % / / 9 a / , 0w / . < ■ $ 2 f — ,C = e a) >. @ § q E E c f 2 0 2 @ § @ c1;3 a - - as CDfE E § 2 o % § 2E kf33E / > 2 co TD CL a ¥ — � # � u) a % .c k § « g t § 2 4 CLg u. § 2 CO Cr) E co— c a \ CL o >_ 7a- - 0 15. k 0O \ CD 2 < • • To: Alaska Oil&Gas Conservation Commission Date: March 11,2018 From: Jim W.White,President Alaska Crude Corporation Subject: Mike Pelch#1 Abandonment Cost Estimate / 86 - coco-7PTD 186-007 API#50-133-20333-00 As requested,please find a summaryof estimated costs of abandonment of the subject well. Total costs are estimated to be$68,000. Mike Pelch#1 (formally the Union Oil Cannery Loop#2)is located 1481 feet from the north line (FNL)and 863 feet from the east line(FEL)of Section 2,T5N,Rl 1 W,Seward Meridian. The well site is located on private property. Abandonment operations will be executed with a rig/BOPE/pipe and other equipment owned by Alaska Crude Corp.Labor will be provided by the equity owners,one of which will have a current Well Control certification. Therefore costs associated with labor and equipment rental are relatively low. • 20"94#H-40 conductor to 93' and • 13-3/8"61#K-55 12.515"ID surface to 2612' and • 9-5/8"47#N-80 8.681"ID surface to 8100' and SCAN a • 7"29#N-80 6.184"ID liner 7691'-10730' and • 2-7/8"6.4#N-80 2.441"ID tubing 9030' and • Retrievable production packer 9000' and • Fill/plug-back depth 9990' and • Open perforations 9256'-9310' md,9.4 ppg EMW reservoir pressure,gas zone • Open perforations in the inner annulus(2-7/8"x 9-5/8")at 5500'-5520', 8.4 ppg EMW water • Wellbore volume to bottom perfs(w/o tubing,volume of 9-5/8"and 7")625 bbls Proposed Abandonment Operations: Operation Costs($1000) 1. Rig already on location 2. Purchase 2X wellbore volume 10 ppg KWF $15 3. Pull BPV(third party) $1 4. Fill annulus and tubing with KWF 5. Install TWC,ND tree,NU BOPE,test,pull TWC $1 6. PU landing joint,unseat retrievable packer,kill well 7. Pull and rack back 2-7/8"tubing,pump KWF down backside 8. LD packer,RIH with tubing as work string,tag TD 9. Plug 1:Pump 18 sacks 15.8 ppg cmt 9890'-9990' $0.4 10. Pull up hole to safety,WOC,RIH weight test plug 11. Plug 2:PUH, lay in cmt 9052'-9410', 100' above/below perfs, 65 sacks 15.8 ppg $1.4 • • • 12. Pull up hole to safety,WOC,RIH weight test plug 13. Plug 3: PUH, lay in cement 8402'-8613', 100' above/below perfs,40 sacks, 15.8# $0.8 14. Pull up hole to safety,WOC,RIH weight test plug. POOH 15. Plug 4: PUH,lay in cement 7188'-7754', 100' above/below perfs, 192 sacks, 15.8# $4 16. Pull up hole to safety,WOC,RIH weight test plug. POOH 17. Plug 5:PUH,lay in cement 5320'-6066', 100' above/below perfs, 267 sacks, 15.8# $5.4 18. Pull up hole to safety,WOC,RIH weight test plug. POOH 19. Plug 6: PUH,lay in cmt 2512'-2712', 100' above/below SC shoe,36 sacks, 15.8# $0.8 20. Pull up hole to safety,WOC,RIH weight test plug. POOH 21. Punch circulation holes in 9-5/8"at 150',and circulate 13-3/8"to KWF $5 22. Plug 7:RIH to 150',circ. 15.8 ppg cmt in 9-5/8"and 13-3/8"annulus 100 sacks $2 23. WOC,ND BOPE,cut off wellhead,perform top job if necessary $1 24. Weld abandonment plate w/appropriate info $1 25. Fill cellar with gravel 26. Diesel Fuel for equipment $4 27. Equipment rental $15 28. Miscellaneous expenses/contingency $10 Total estimated cost $68K Please note that the Pelch well is located on privately-owned property that I own. I also own a significant portion of any gas that can be produced from this well. For as long as this well is capable of delivering valuable product, I have no intent to plug and abandon this well. By no stretch of the imagination is this well stranded or orphaned. Pursuant to AOGCC orders 254 and 277, and Judge Hopwood's 1990 court order all issued in 1990, establishing a 640 acre production unit for this well, the AOGCC forbids any production from this well until everyone owning correlative rights to the gas from this well have had their interest voluntarily or involuntarily integrated by the AOGCC. To this day the AOGCC has yet to integrate the interests of all the mineral interest owners owning any gas that can be produced from of this well. Only when the AOGCC has duly integrated all interests pursuant AS 31.05.100 (c), will we have the authority to produce the Pelch well. In May of 2013,Mr.Jim Regg,the Supervisor of Petroleum Inspections at the AOGCC, personally corresponded with me, and duly witnessed Cameron valve company install the back pressure valve in the 2-7/8"tubing on this shut-in Pelch gas well and confirmed the repair of a small leak from a glandular bolt that simply needed to be tightened.This well is regularly closely physically monitored and supervised. This well is also continuously monitored electronically and instantly transmits the annulus pressure.Additionally we have remote cameras reporting any movement at the well site. The adjacent land and mineral interest owners to this well are entitled to their share of production from this well. They are also entitled to receive gas for free for all of their home and barn heating needs. They are of course responsible for providing their pipe to the wellhead. Competition for selling gas to markets in Alaska is extremely limited. It is • • • a very small market and competition is extreme. One cannot simply open the valve and begin selling and delivering gas. One has to have a customer. Could you please send us the regulation that is being relied upon for this request to provide this plugging and abandonment cost estimate? KBE: 80.6' • Mike Pelch PTD 186-00* GL: 53.5' P&A Schematic P&A plug#7 ;% ?: `'<? "k>"_'_^%' Surface- 150' I s::>::>:: _: ;<:<;•:w�>>;. _;; I Conductor 20", 94#, H-40 93' P&A plug#6 I inswimili , 2512' -2712' imimmimmil Surface casing: 13-3/8"61#K-55 2612' md/tvd Cemented to surface i:f; Perls: P&A plug#5 5420'-5440'md/tvd, S z'ed 5320' -6066' :::::>:'<r :><;::::::::::::: 5500'-5520'md/tvd, Open # '>:••:: : : :: Perfs::: ` :: ::;::: :::" : ::::: " ' ` " """'` i ` i " " 5740'-5756'md/tvd, Sgz'ed :; ;; ,;; ;,;; ,;;;;::.: :: 5770'-5780'md/tvd, Sgz'ed 5800'-5818'md/tvd, Sgz'ed t`�'<` `' ' 5868'-5882'md/tvd, Sgz'ed :�:�s:>>:'? >:€:':>:zM: 5937'-5939'md/tvd, Sgz'ed i ••• i • • iiii�,. 5942'-5958'md/tvd, Sgz'ed '`"'`"''>;;;ell"f'• 5964'-5966'md/tvd, S z'ed P&A plug#4 i€<< <€< z< Perfs: 7188'-7754' NEM iitMegr 7288'-7314'md/tvd, Sgz'ed ?: > r<;:;l i :: 7642'-7654'md/tvd, Sgz'ed 7" Liner top packer/hanger, 7691' and/tvd `_ ii r: .: 9-5/8"Casing 47#L-80 BTC, 8100' md/tvd I +gnggi , P&A plug#3 Perfs: 8402' -8613' >' 8502'-8513'md/tvd, Sgz'ed El si:i:3::»::::::,. E:. Perfs: `i gi• 9152'-9164'md/tvd, Sgz'ed P&A plug#2 rl 9256'-9276'md/tvd, Open 9052'-9410' REMEM. 9300'-9310'md/tvd, Open P&A plug#1 Mil 9890' -9990' inniiiiMiNgr rr•r.. .....10•109." : Sqz'd perfs below TOC/PBTD:BTD: j: � r1 9990' md/tvd TOC .rr;,r{.{.; .. 10,040'-10,060'md/tvd Current PBTD %%V.: .7A .• 10,230'-10,240'md/tvd Liner: 7", 29#N-80,10,730' md/tvd MEN Cemented to TOL KBE: 80.6' • Mike Pelch PTD 186-00. GL: 53.5' Existing Conditions BPV installed in 2-7/8"tubing hanger ' I K I Conductor 20", 94#, H-40 93' Full wellhead/tree installed. Inner annulus pressure monitored continuously w/remote data transmittal. Motion activated cameras monitoring well/location. 4 Surface casing: 13-3/8"61#K-55 2612' mdltvd Cemented to surface 2-7/8"6.4#N-80 tubing —�► Perfs: 5420'-5440'md/tvd, Sqz'ed 5500'-5520'md/tvd, Open Perfs: 5740'-5756'md/tvd, Sqz'ed 5770'-5780'md/tvd, Sqz'ed 5800'-5818'md/tvd, Sqz'ed 5868'-5882'md/tvd, Sqz'ed 5937'-5939'md/tvd, Sqz'ed 5942'-5958'md/tvd, Sqz'ed 5964'-5966'md/tvd, Sqz'ed Fill/WL fish @–6000' f rrrr ,.rfr {rrr Frrr rrrr ern rrrr rrrr {rrr rrrf "Fe./ frr Perfs: 7288'-7314'md/tvd, Sqz'ed 7642'-7654'md/tvd, Sqz'ed 7" Liner top packer/hanger, 7691' md/tvd g 9-5/8"Casing 47#L-80 BTC, 8100' md/tvd 4 , Perfs: 8502'-8513'md/tvd, Sqz'ed 2-7/8"x 7" Retrievable packer, 9000' md/tvd S F 2-7/8"tubing tail, 9030' md/tvd Perfs: 9152'-9164'md/tvd, Sqz'ed 9256'-9276'md/tvd, Open 9300'-9310' mdltvd, Open r•r•r•r•r• trtijtiftifLj: Sqz'd Perfs below TOC/PBTD: 9990' md/tvd TOC tir•r•r•r•r• 10,040'-10,060' md/tvd ti.L.•..•.•ti Current PBTD j•r•�•j•r• 10,230'-10,240' md/tvd ti••.••.•1•ti•'L Liner: 7", 29#N-80,10,730' md/tvd Cemented to TOL • • • To: Alaska Oil&Gas Conservation Commission Date: March 8,2018 From: Jim W.White,President Alaska Crude Corporation Subject: Mike Pelch#1 / c) r 0 0 7 Abandonment Cost Estimate 7j PTD 186-007 API#50-133-20333-00 As requested,please find a summary of estimated costs of abandonment of the subject well. Total costs are estimated to be$64,000. Mike Pelch#1 (formally the Union Oil Cannery Loop#2)is located 1481 feet from the north line (FNL)and 863 feet from the east line(FEL)of Section 2,T5N,Rl 1 W,Seward Meridian. The well site is located on private property. Abandonment operations will be executed with a rig/BOPE/pipe and other equipment owned by Alaska Crude Corp.Labor will be provided by the equity owners,one of which will have a current Well Control certification. Therefore costs associated with labor and equipment rental are relatively low. • 20"94#H-40 conductor to 93' and • 13-3/8"61#K-55 12.515"ID surface to 2612' and • 9-5/8"47#N-80 8.681"ID surface to 8100' and • 7"29#N-80 6.184"ID liner 7691 -10730 and SCANNED • 2-7/8"6.4#N-80 2.441"ID tubing 9030' and • Retrievable production packer 9000' and • Fill/plug-back depth 9990' and • Open perforations 9256'-9310' md,9.4 ppg EMW reservoir pressure,gas zone • Open perforations in the inner annulus(2-7/8"x 9-5/8")at 5500'-5520', 8.4 ppg EMW water • Wellbore volume to bottom perfs(w/o tubing,volume of 9-5/8"and 7")625 bbls Proposed Abandonment Operations: Operation Costs($1000) a. Rig already on location b. Purchase 2X wellbore volume 10 ppg KWF $15 c. Pull BPV(third party) $1 d. Fill annulus and tubing with KWF e. Install TWC,ND tree,NU BOPE,test,pull TWC $1 f. PU landing joint,unseat retrievable packer,kill well g. Pull and rack back 2-7/8"tubing,pump KWF down backside h. LD packer,RIII with tubing as work string,tag TD i. Mix/pump 195 sacks 15.8 ppg cmt 9990'-9156' (100' above perfs) $4 j. Pull up hole to safety,WOC,Rill weight test plug k. PUH,lay in cmt 5620'-5400', 100' above/below perfs,98 sacks 15.8 ppg $2 • ! 1. Pull up hole to safety,WOC,RUT weight test plug m.PUH,lay in cement 2712'-2512', 100' above/below 13-3/8"shoe 98 sacks 15.8 ppg $2 n. Pull up hole to safety,WOC,RIR weight test plug. POOH o. Punch circulation holes in 9-5/8"at 150',and circulate 13-3/8"to KWF $5 p. RIR to 150',circulate 15.8 ppg cement in 9-5/8"and 13-3/8"annulus 122 sacks $3 q. WOC,ND ROPE,cut off wellhead,perform top job if necessary $2 r. Weld abandonment plate w/appropriate info $1 s. Fill cellar with gravel t. Diesel Fuel for equipment $3 u. Equipment rental $15 v. Miscellaneous expenses/contingency $10 Total estimated cost $64K Please note that the Pelch well is located on privately-owned property that I own. I also own a significant portion of any gas that can be produced from this well. For as long as this well is capable of delivering valuable product, I have no intent to plug and abandon this well. By no stretch of the imagination is this well stranded or orphaned. Pursuant to AOGCC orders 254 and 277, and Judge Hopwood's 1990 court order all issued in 1990, establishing a 640 acre production unit for this well, the AOGCC forbids any production from this well until everyone owning correlative rights to the gas from this well have had their interest voluntarily or involuntarily integrated by the AOGCC. To this day the AOGCC has yet to integrate the interests of all the mineral interest owners owning any gas that can be produced from of this well. Only when the AOGCC has duly integrated all interests pursuant AS 31.05.100(c),will we have the authority to produce the Pelch well. In May of 2013,Mr.Jim Regg,the Supervisor of Petroleum Inspections at the AOGCC, personally corresponded with me, and duly witnessed Cameron valve company install the back pressure valve in the 2-7/8"tubing on this shut-in Pelch gas well and confirmed the repair of a small leak from a glandular bolt that simply needed to be tightened. This well is regularly closely physically monitored and supervised. This well is also continuously monitored electronically and instantly transmits the annulus pressure. Additionally we have remote cameras reporting any movement at the well site. The adjacent land and mineral interest owners to this well are entitled to their share of production from this well. They are also entitled to receive gas for free for all of their home and barn heating needs. They are of course responsible for providing their pipe to the wellhead. Competition for selling gas to markets in Alaska is extremely limited. It is a very small market and competition is extreme. One cannot simply open the valve and begin selling and delivering gas. One has to have a customer. Could you please send us the regulation that is being relied upon for this request to provide this plugging and abandonment cost estimate? • • Schwartz, Guy L (DOA) b ( D From: Rixse, Melvin G (DOA) Sent: Friday, February 23,2018 3:51 PM To: Foerster,Catherine P(DOA);Schwartz, Guy L(DOA) Subject: RE:Jim White,Alaska Crude Corp, leases and wells Cathy,Guy, Just a short update on these three Alaskan Crude wells. I will complete my work when I get back on March 12th Jim White called to tell me his version of the status on these three wells. I will parrot what he told me. Burglin 33-1 -Jim claims he has sold the lease to Sam Napee and Barry Foote. He says the well is freeze protected and has a plug at 4100'. I will ask him to demonstrate that the lease has been sold and if not, I will ask for proof of activity. Kattala -Jim claims he has sold the lease to Bill Stevens. I will also ask him to demonstrate that the lease has been sold. �-�'7 Mike Pelch 1—Jim claims ownership of this lease. He claims he owns 3100 acres in the proximity of this war.I. He said he has a BPV,a downhole plug and a remote monitoring surface camera at this wellsite. (I believe it is about 1.5 miles south of Clam Gulch just off the highway to Homer between the road and the inlet.) He said he has hired Dan Kara to work the technical details of this well. I talked to Dan today. Dan claims there are hydrocarbons, but marketing is difficult. Dan may be involved with the interface between Jim and AOGCC. He was happy I called and knows that I will be out of the office the next 2 weeks. Dan lives in Houston, but may be contacted at(907)240-8047 if anyone wants to call him while I am gone. Dan was aware of an upcoming deadline so he seems to understand some urgency in the matter. Jim White's demeanor was friendly and seemed to be looking for sympathy as an independent operator in Alaska. As I have been alerted,Jim may have ambitions that are not clearly stated so I am documenting my conversations as best I can. That is all for now. Mel Rixse SCANNEC Senior Petroleum Engineer(PE) Alaska Oil and Gas Conservation Commission 907-793-1231 Office 907-223-3605 Cell melvin.rixse@alaska.gov From: Foerster,Catherine P (DOA) Sent:Thursday, February 22,2018 12:58 PM To: Rixse,Melvin G (DOA)<melvin.rixse@alaska.gov> Subject: FW:Jim White,Alaska Crude Corp, leases and wells 1 • From:Walsh, Chantal R(DNR) Sent:Thursday, February 22, 2018 11:23 AM To:Foerster,Catherine P(DOA)<cathy.foerster@alaska.gov> Subject: FW:Jim White,Alaska Crude Corp, leases and wells Chantal Walsh Director State of Alaska Department of Natural Resources Division of Oil and Gas 550 W.7th Avenue,Suite 1100 Anchorage AK 99501-3510 Direct:907.269.7493 Cell:907.538.4804 CONFIDENTIALITY NOTICE: This e-mail message,including any attachments,contains information from the State of Alaska,Department of Natural Resources(DNR) 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 DNR is aware of the error in sending it to you,please contact Chantal Walsh at(907)269.7493 or chantal,walsh(a@alaska.gov From: Beckham,James B(DNR) Sent:Thursday,February 22, 2018 9:37 AM To:Walsh,Chantal R(DNR)<chantal.walsh(a@alaska.gov> Subject:Jim White,Alaska Crude Corp, leases and wells From Kyle,we only have one'active' lease,the one under appeal at Moose Point—ADL 389922. White didn't drill a well at Moose Point. His efforts were concentrated upon re-entering the Moose Point Unit#1 well which was drilled by Amarex in 1978 and P&Aed in 1979.White received a permit to drill for re-entry of the well in 2005, but the PTD expired in 2007 and he did not re-enter the well. Kyle also checked to see if any drilling occurred at the Arctic Fortitude Unit before it was terminated;White didn't drill there, either. It appears four wells have been drilled by Alaskan Crude Corp. Kyle isnt sure if White was associated with ACC back then. Also he didn't find anything under James W.White or other known aliases. Katalla St 1 8/1969 Gulf of AK(P&Ad) Burglin 33-1 3/1985 North Slope(suspended) Katalla KS-01 10/1986 Gulf of Ak(Shut in) Mike Pelch 1 8/1986 Cook Inlet(Private Lands,sanded in at 6300ft,shut in) Sean Clifton pulled the attached info from AOGCC. This is a picture of the area of the Burglin well. There is an old pad btwn U and P pads that may be the drill site; it roughly matches with the coordinates listed with AOGCC. 2 f a. ! 4, ): —' '-' ' ,.'i ''''' `,', . ' ..'t ,,golS f .- - i tl A ii 11, ice: ,,,. iF r1 ,7 thtliti, y 4 • .. S E, ,' ,,,, , . .. /:, .. ,. .,,, , 3 , James B. Beckham Deputy Director ,, `: State of Alaska Department of Natural Resources Division of Oil and Gas 550 W.7th Avenue,Suite 1100 Anchorage AK 99501-3510 Direct:907.269.8775 Cell:907.310.6025 CONFIDENTIALITY NOTICE: This e-mail message,including any attachments,contains information from the State of Alaska,Department of Natural Resources(DNR) 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 DNR is aware of the error in sending it to you,please contact Jim Beckham at(907)269.8775 or jim.beckham@alaska.gov. 3 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ��CC R`2� DATE: 9/11/13 P. I. Supervisor FROM: Jeff Jones SUBJECT: Well Inspection Petroleum Inspector Mike Pelch #1 PTD i ,0070 9/11/13: I traveled to Alaska Crude Corp's (ACC) Mike Pelch #1 well location off Beaver Loop Road in Kenai, AK, to inspect the well head for leaks and witness the installation of a back pressure valve (BPV) in the tubing hanger. Jim White Sr. and Jim White Jr. were the ACC representatives for the test today and we met and discussed the procedures. Cameron personnel attempted to install the 3.5" BPV but it would not drift the well head production flow tee. The - well was shut in and the flow tee was removed and sent to a machine shop for inspection and repair. A slight protrusion from the tee manufacturing weld procedure was milled from inside the flow tee and it was re-installed on the production tree. The 3.5" BPV was then installed in the tubing hanger and - successfully pressure tested. Mr. Jim White Jr. indicated to me that he had repaired the previously reported well head leaks and I inspected the well head and hanger lockdowns and found no evidence of hydrocarbons or other fluids leaking from the well head or casing. Summary: I witnessed the installation of a 3.5" BPV in the tubing hanger and a successful pressure test of the BPV. I inspected the well head and confirmed that the previously reported well head leaks were repaired. Attachments: Photos (1) - Non-Confidential SCANNER DEC I 0 2013 1 of 2 • • • : '..� ., y.,':tF 'J0' { , . ..-, ,,S t 9«'E., . .' • •tea .a" ' ' ' ' f k x 1 '� , " r Ver } .!. ... i it,- 44., -41 i i 4r • , , e .. , ,, ---A , mil, Installation of Back-Pressure Valve in Mike Pelch#1 2 of 2 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg I 6/Z9 ( t 3 DATE: May 24, 2013 P. I. Supervisor FROM: Lou Grimaldi SUBJECT: Location Inspection Petroleum Inspector Mike Pelch #1 PTD #1860070 Friday, May 24, 2013: I made a follow -up location inspection on the Mike Pelch #1 well in the Kenai /Soldotna area. I previously visited the well location on 5/20/13 and details of that inspection with photos are located in well file PTD 1860070. Today I arrived to find the lease gate open and upon driving in to the location I met a young Mr. Harley Hill who had been engaged by James White Sr. to watch the location in his absence. Mr. Hill gave me the cell phone number for James White Jr. and I called him. Both father and son met me on location in short order where we discussed the situation with the well. Mr. White Sr. was very forthcoming with information on the history of the well during which time it came to light that there had been wireline work performed on the well in attempts to bail sand and swab fluid. According to Mr. White Sr., the wireline swab assembly had been lost in the hole during the wireline work. I asked Mr. White Sr. if there was a back pressure valve in the tubing hanger and received "no" as the answer. Upon inspection of the wellhead I noticed that the fluid level was approximately one foot lower than my previous visit of 05/20/13. I did not see the bubbling that was at the 9:00 ' position which I viewed on my last visit. The stronger bubbling at 11:00 was still there and I noticed a small stream at the 1:00 position. As the fluid level was much lower and very close to the flange below fluid level it appeared that the leaks were coming from gland nuts on the lockdown screws. After discussing this with both Mr. White Jr. and Mr. White Sr., I came to the understanding that that flange was not for the outer annulus as that had been cemented to surface either during the P&A or subsequent reentry in this well. As I understand it, this well has 9 5/8" production casing with 7" hung off at some depth downhole and some size tubing that I could not seem to get a handle on. The 13 5/8" (estimate) casing head that I originally thought to be the surface casing head actually is used as a spacer /crossover spool and the lockdowns one can see under the water and possibly leaking only serve to fill the holes in said casing head. I advised both Mr. White Jr. and Mr. White Sr. the following is required: 1. Develop a plan and submit to James Regg (AOGCC) by the end of today on getting the wellhead pressures. Subsequent actions will also require plans to be submitted prior to work performed. 2. Do not perform any work unless plans are submitted and acknowledged /approved. 3. Obtain and submit a wellbore diagram in addition to a surface equipment sketch. Attachments: none MAY 3 0 2013 SCANNED 2013- 0524_Location Mike_Pelch_ #1_lg.docx 1 of 1 • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg , at. 512-1(13 DATE: May 21, 2013 P. I. Supervisor ( FROM: Lou Grimaldi SUBJECT: Location Inspection Petroleum Inspector Mike Pelch #1 PTD #1860070 Monday, May 20, 2013: I made a location inspection on the Mike Pelch #1 well in the Kenai /Soldotna area. The pad access road is on Beaver Loop road on the right approximately 1.2 miles from the Kenai Spur Highway. Approximately 1 mile walk from the road is required as there is a locked gate at the highway. There has been much drilling equipment moved onto the pad since my last visit some 6 years ago. This equipment is in various states of repair and order. The pad is acceptable in condition. There is water in the well cellar that is above the Production by Surface casing flange. Bubbling was observed in two places very close to the wellhead that appears to come from the area of the above mentioned flange. The bubbles are very constant, one rolling off another from two different areas of the wellhead. In a forward presentation with the valves handles front the larger stream of bubbles is at 9 O'clock with the lesser stream at approximately 11 O'clock. The Inner Annulus (production casing) valve was below fluid level and did not appear to be leaking. Pressure on the production casing gage was at zero; there is a IA turn valve upstream of it that was in the closed position. There was not any way to ascertain tubing pressure without disturbing valves on the tree and wellhead assembly which I was not authorized to do today. I took 4 short videos of the bubbling which were provided to you by email. The rest of the pad was acceptable although there was some trash. Pallets of mud treating oilfield chemicals that were observed during past visits have been removed with no visible remnants. There were some empty five gallon pails of motor oil and a wet spot on the mats below the rig. It did not seem that there was any dripping of oil from the rig while I was there. One item of interest today was a pile of (approximately 25) shotgun shells and the remainder of a box of shooting clays. Although located away from the wellhead, this is still inappropriate activity for a wellsite. Conclusion and Suggestions: There seems to be a flange leak from the Production by Surface casing flange area. This will only be ascertained by a closer inspection. The fencing around the wellhead should be removed and fluid suc k ed down slowly own in the cellar slow) until the source of the leaks can be determined. A wellhead technician should be handy to assist if problems develop. Attachments: 15 photographs SCANNED MAY Q 2D13 Non - Confidential 201 3 - 0520_LocationMike_Pelch_# 1 _lg.docx 1 of 7 • • Location Inspection — Mike Pelch #1 (Alaska Crude Corporation) PTD 1860070 Photos courtesy of AOGCC Inspector L. Grimaldi 5/20/2013 xF •. . Access road to . Mike Pelch #1 pad - ° Equipment on I °'"""": Mike Pelch #1 pad 2013- 0520_LocationMike_Pelch_# 1 _Ig.docx 2 of 7 • • ? , 1 More equipment including gas _ dehydration skid for -4411* s production processing 4 JAL ii : � ' R � .rlr► �` ''�` riL , tit 4. t 7 +, qW?y ., BOPE Accumulator skid . 1u. 144":'''' '' ., r . ,..: xt:. vi - — r.—t; - 1 Y .... 4whijiw • 4 ________ ,• __, +c ' . r f ,wr . _ is ♦i ` _ , �.� " ,; w Power swivel . � ti ifalR� t i iir 1. t 201 3- 0520_Location_Mike_Pelch_# 1 _1g. docx 3 of 7 • • • r f V r - j y i. t } . Yrd A q Y . �.p '.,` K Poor boy gas buster t r1 f ' ' '''' , Rig staged at Mike g g i � r - ,P ; _ - ® Q � . 0 0 - ......,, f ` I Pelch #1 .. 1' r- . ...: -.:__- ---- t.-: - iiiiiiii;. ' - ' - ' -- 7!"*.:00.0-1-L . -' -- ' 40 1 7 .".." , i .ice... RAMBLER RIO , Rig Carrier data plate ._ 201 3 -0520 Location Mike_Pelch_ #1_lg.docx 4 of 7 • • • I { 4 Inner annulus (tubing by production casing) pressure gauge s h. s Blowdown piping and "flare pit" 201 3- 0520_Location_Mike_Pelch_# 1 _lg.docx 5 of 7 • • `fi - _ Drill pipe i S ..FS. - I la ' ,,,.... , . _ , iiii,,...- - - Junk drill pipe and kelly's i w * . .'7 i ' f I F r, lit Willi_;.# .3f 1 r,. . _ i , _ Junk iron i rr�.�' 201 3- 0520_Location_Mike_Pelch_# 1 _lg. docx 6 of 7 • • ,.- Junk iron limprwamorry r t Inappropriate :. activity for a wellsite �...: ; t . •:' Wc, it - _ - 201 3- 0520_Location_Mike_Pelch_# 1 _1g.docx 7 of 7 CIRI • ~~'~~~ February 24, 2009 --~ t~s~ -©®~ Mr. Dan Seamount, Chairman Alaska Oil & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 RE: CO #254, Mike Peich #1 Well ' ' ~'"' ~ "'"~ Dear Mr. Seamount: Cook Inlet Region, Inc. ("CIRI") is a mineral owner within the drilling unit established in 1990 by CO #254 ("Drilling Unit") for the Mike Pelch #1 Well ("Well"). The Well lies approximately 160 feet south and 457 feet east of CIRI property lines. The purpose of this letter is to request that the AOGCC notify CIRI of any and all applications and actions involving the Well or the Drilling Unit. CIRI is interested in protecting its correlative rights as a significant mineral owner within the Drilling Unit as, to date, CIRI has agreed to no voluntary integration of its interest with other persons owning mineral interests within the Drilling Unit. Please send notifications pursuant to this request to: Kim Cunningham Director, Land and Resources Cook Inlet Region, Inc. (CIRI) 2525 C Street, Suite 500 Anchorage, AK 99503 Thank you for your assistance and please let us know if you have any questions or concerns. Sincerely, COOK INLET REGION, INC. Kim Cunningham Director, Land and Resources cc: Pirtle Bates, Jr., Manager, Resources Tom Maunder, Petroleum Engineer, AOGCC 2525 "C" STREET, SUITE 500 • P.O. BOX 93330 • ANCHORAGE, ALASKA 99509-3330 (907) 274-8638 • FAX (907) 279-8836 • Web Site: www.ciri.com Pekh # j it 1 t ±rne I ovling down from such. cas bli could ne,,] attached Grimaldi I took. Î'" ~. f' ALASI~A OIL AND GAS CONSERVATION COP]PlISSiON TONY KNOWLES, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 August l7,2000 Mr. James White 12225 Stoney Crossing San Antonio TX 78247 Dear Mr. White: This letter is a follow up to our telephone conversations August 10 and today. You indicated that my letter to you dated August 9, 2000, incorrectly referenced a requirement for the Mike Pelch #1 well that you "first need to obtain a permit to drill". I have reviewed our well file regarding the Mike Pelch # 1 well (permit # 86-7) and our records do indicate it was completed as a gas well. We agree that a permit to drill is not required before certain work is commenced in the Mike Pelch #1 well. However, as you know, your proposed well work requires authorization from the commission in the form of a sundry approval. You have assured me that you will submit a new Application for Sundry Approvals (Form 10-403) for Blair Wondzell's review. You also inquired about the need for permits from other agencies. As I mentioned in our conversation, we cannot tell you which other agency permits you may or may not need. However, you may find it helpful to contact Ms. Riki Lebman at the Division of Governmental Coordination here in Anchorage at 271-4317. Sincerely, Camill~ Oechsli Taylor Commissioner CC: Rob Mintz Blair Wondzell Riki Lebman ALASKA OIL AND GAS CONSERVATION CO~LSllSSION TONY KNOWLES, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 August 9, 2000 Mr. James White 12225 Stoney. Crossing San Antonio TX 78247 Dear Mr. White: This is to follow up our meeting on August 4, 2000, in which I promised to outline for you in writing the filings and approvals required in connection with the plans you described for the wells in which you have an interest, namely, the McCoy Prospect No. 1 well, the Mike Pelch # 1 well, the Burglin #33-1 well, and the Katalla KS-1 well. In each case you indicated that the intended operator is Alaskan Crude Corporation ("ACC"), so in each case the first requirement is that the $200,000 certificate of deposit securing ACC's bonding obligation under 20 AAC 25.025 be changed to show it is issued in sole favor of the Alaska Oil and Gas Conservation Commission. Additional requirements are described below for each well. McCoy Prospect No. 1 Well 1. Designation of Operator. For the McCoy Prospect No. 1 well, you explained that the private tract containing the well's surface location is leased to Intrepid Production Co. and the adjoining state tract is leased to you personally. Although ACC retains the obligations of operator with respect to this and other wells based on its earlier designation as operator or previous lease ownership or both,, the current lessees need to designate ACC as operator in order for ACC to be authorized to conduct future operations on their behalf. Therefore, before ACC operates in the well, Intrepid Production Co. must submit to the Commission for approval a Designation of Operator (Form 10-411) in which Intrepid designates ACC as operator and ACC agrees to accept the obligations of an operator. In addition, if ACC intends to operate in the well for the purpose of exploring, testing, or producing from the state lease, you personally, as lessee of the state lease, will also need to submit to the Commission for approval a separate Designation of Operator in which you designate ACC as operator and ACC agrees to accept the obligations of an operator. 2. Notice of Ownership. Furthermore, the current lessees - Intrepid, for the private tract, and you personally for the state tract - need to submit to the Connnission a Notice of O,amership (Form 10-417) for the respective leases. As I explained in our meeting, and as the statutory definition at AS 31.05.170(9) indicates, an "owner" in the case of a tract subject to an oil and gas lease is the lessee. 3. Application for Spacing Exception. You indicated that you wish to test a gas prospect in the McCoy well in accordance with the plan described in a 1995 Application for Sundry Approvals. Because this would involve opening the wellbore to test production within 1500 feet of a property line (without identity, of owner and landowner on both sides of the line), a spacing .exception is required under 20 AAC 25.055(a)(2). Conservation Order 309 Rev. also makes clear that a spacing exception is required. You must therefore, submit to the Commission an application for a spacing exception in accordance with 20 AAC 25.055(d) and send notice by certified mail to the persons specified in that regulation. Unless a spacing exception is granted,, the wellbore may not be open to test or regular production. Mr. White -2- August 9, 2000 Work in the well preparatory to test production may take place before obtaining a spacing exception as long as it is covered by an applicable sundry approval or permit to drill, which is addressed below. However, please understand that the Commission cannot guarantee that a spacing exception will be granted and therefore, you would be assuming the risk by performing the work without first having obtained a spacing exception. To provide yourself some assurance, you may wish to consider obtaining letters of non-objection from the owners and operators within a 3000' radius of the well before beginning work. 4. Application for Sundry_ Approvals Although your 1995 Application for Sundry Approvals was approved by the Commission in that year, we do not consider it to be valid anymore at this late date and do not think it is reasonable for an operator to assume that a sundry approval continues to be valid indefinitely. Also, there are at least two reasons why you would probably find it beneficial to submit a new Application for Sundry Approvals (Form 10-403). One is to enable you to revise and update your plan. The second reason is that under AS 31.05.170 and 20 AAC 25.235, flared or otherwise released gas constitutes waste unless authorized by the Commission. Under 20 AAC 25.235(d)(6), an operator may apply for authorization to flare or vent gas for purposes of testing a well before regular production. You may include such an application in a new Application for Sundry Approvals; otherwise you will need to submit a separate application for authorization to flare before you test the well. 5. Alternate Plan to Test Oil Prospect In a conversation after our meeting, you raised the possibility of re-entering the well to test a deeper oil prospect prior to obtaining a spacing exception to test the gas prospect. You pointed out that Conservation Order No. 211 granted a spacing exception to allow oil exploration (but not regular production). Before re-entering the well to test for oil you would need to obtain a Permit to Drill (Form 10-401) authorizing the operations (a permit to drill is required if the operations will include drilling or re-drilling or otherwise re-entering a plugged portion of the well). Please refer to 20 AAC 25.005 for the specific requirements to obtain a permit to drill. As you know, the permit to drill does not exempt you from obtaining additional permits required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permitting determinations are made. If there is a possibility that gas will be flared or released in connection with testing the oil prospect, you should apply in advance to the Commission for authorization under 20 AAC 25.235, as explained above. Mike Pelch # 1 Well You stated that you (referred to as "James W. White et al" in Conservation Order No. 277) continue to be the lessee of the property on which the Mike Pelch #1 well is located. Before any operations are conducted, you need to submit for Commission approval a Designation of Operator form designating ACC as operator. You did not go into detail about your operating plans for this well, but you referred to Conservation Order No. 277 and implied that you intend to re-enter the well to explore for hydrocarbons in accordance with that Conservation Order and Conservation Order No. 254. As recognized in those orders, you will first need to obtain a permit to drill. Refer to the above comments regarding other agency requirements. Burglin #33-1 Well You stated that the current lessee of the property on which this well is located is James W. White, but that you intend to assign the working interest to other entities, whoever owns the working interest at the time operations are proposed will need to file a Notice of Ownership and a Designation of Operator in which ACC is designated and accepts the operatorship on behalf of the owner(s). Mr. White -3- August 9, 2000 You did not go into detail about your operating plans for this well, but you referred to a sundry approval issued to ACC in 1993 to re-enter the well. As explained above, such a stale approval is no longer valid. Depending on the nature of the operations planned, ACC will need to submit either an Application for Sundry Approvals or an application for a Permit to Drill. Katalla KS-1 Well You stated that Dale Welch owns the tract, including the mineral interest, on which this well is located and that there is no oil or gas lease but that ACC has an agreement with the owner to be operator. Our files contain a Designation of Operator by Wel-Aska designating ACC as operator. If Dale Welch personally, rather than Wel-Aska, is in fact the owner, Mr. Welch will need to file a Notice of Ownership and a Designation of Operator before ACC can conduct operations on the owner's behalf. You also indicated that there are no present plans for conducting any operations. If and when such plans develop, the Commission staff will be happy to discuss with you the application and approval requirements that might apply. Concluding Observation Finally, I should reiterate that apart fi.om any plans for ACC to test, re-enter, or perform other operations in the wells, ACC has continuing obligations to maintain the wells in a safe condition, meet other statutory and regulatory requirements such as filing annual repons under 20 AC 25.115, and ultimately to plug and abandon the wells when that is required under 20 A_AC 25.105. I hope this information is helpful. Sincerely, Commissioner lit Enclosures: 4 cc: Rob Mintz, Attorney General ---.. STATE OF ALASKA -- ALASK OIL AND GAS CONSERVATION OMMISSION PERMIT TO DRILL 20 AAC 25.005 la. Type of work Drill -- Redrill '~l lb. Type of well. Exploratory ~ Stratigraphic Test [] Development Oil [] Re-Entry -- DeepenEI Service -- Developement Gas ~ Single Zone ~ Multiple Zone [] 2. Name of Operator 5. Datum Elevation (DF or KB) 10. Field and Pool feet 3. Address 6. Property Designation 4. Location of well at surface 7. Unit or property Name 11. Type Bond (see 20 AAC 25.025) At top of productive interval 8. Well number Number At total depth 9. Approximate spud date Amount 12. Distance to nearest 13. Distance io nearest well 14. Number of acres in properbj 15. Proposed depth(uDandmVD) property line feet feet~ feet 16. To be completed for deviated wells 17. Anticipated pressure (see 20 ^Ac 25.035 Kickoff depth feet Maximum hole angle 0 Maximum surface psig At total depth (TVD) psig -18. Casing program Settin~l Depth size Specifications Top Bottom Quantity of cement Hole Casing Weight Grade Coupling Length MD TVD MD TVD (include stage data) 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured feet Plugs (measured) true vertical feet Effective depth: measured feet Junk (measured) true vertical feet Casing Length Size Cemented Measured depth True Vertical depth Structural Conductor Surface Intermediate ' Production Liner Perforation depth: measured true vertical 20. Attachments Filing fee [] Property plat [] BOP Sketch ~ Diverter Sketch [] Drilling program [] Drilling fluid program [] Time vs depth plot [] Refraction analysis [] Seabed report O 20 AAC 25.050 requirements [] 21. I hereby certify that the foregoing is true and correct to the best of my knowledge Title Date Signed .- Commission Use Only Permit Number APl number I Approval date I See cover letter 50--I J for other requirements Conditions of approval Samples required [] Yes [] No Mud log required [] Yes [] No Hydrogen sulfide.measures [] Yes [] No Directional survey required [] Yes [] No Required working pressure for BOPE 1-12M; [] 3M; [] 5M; [] 10M; [] 15M Other: by order of Approved by Commissioner the commission Date Form 10-401 Rev. 12-1-85 Submit in triplicate STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 AAC 25.020 1. Name and Address of Owner: Notice is hereby given of a designation of operatorship for the oil and gas properS' described below: Legal description of property.: ProperS' Plat Attached 3. Name and Address of Designated Operator: 4. Effective date designation: 5. Acceptance of operatorship for the above described property with ali attendant responsibilities and obligations is hereby acknowledged. Signed Date Name (printed). Title (printed). 6. The owner hereby certified that the foregoing is true and correct. Signed Name (printed) Date Title (printed) . Approved Date Commissioner Approved Date Commissioner Approved Date Commissioner (requires two signatures) ALASKA OIL AND GAS CONSERVATION COMMISSION Form 10-411 Submit in duplicate Rev. 01-08-92 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION NOTICE OF CHANGE OF OWNERSHIP 20 AAC 25.O22 1. Name of Operator 2. Address 3~ Notice is hereby given that the owner I-I, landowner [] of re~ord for the oil and gas property described below has assigned or transfered interest in the property indicated below: Property designation: Legal description of proper~ty: Property Plat Attached [] 4. Effective date of assignment 5. Percentage interest assigned or transfered or transfer 6. Assignee or Transferee: Address: 7. Assignor or Transferor: Address: 8. I hereby certify that the foregoing is true and correct to the best of my knowledge Signed Title Date Form 10-417, 12-1-85 Submit in Duplicate STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1. Type of Request: Abandon __ Suspend __ Operation shutdown ~ Re-enter suspended well __ Alter casing u Repair well ~ Plugging __ Time extension __ Stimulate __ Change approved program ~ Pull tubing __ Variance ~ Pedorate __ Other 2. Name of Operator 3. Address 4. Location of well at sudace At top of productive interval At effective depth At total depth 5. Type of Well: Development __ Exploratory __ Stratigraphic __ Service __ 6. Datum elevation (DF or KB) 7. Unit or Property name 8. Well number 9. Permit number 10. APl number 50-- 11. Field/Pool feet 12. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical Casing Structural Conductor Sudace Intermediate Production Liner Perforation depth: measured Length true vertical Size feet feet feet feet Plugs (measured) Junk (measured) Cemented Measured depth True vertical depth Tubing (size, grade, and measured depth) Packers and SSSV (type and measured depth) 13. Attachments Description summary of proposal __ Detailed operations program __ BOP sketch __ 14. Estimated date for commencing operation 16. If proposal was verbally approved Name of approver Date approved 15. Status of well classification as: Oil__ Gas__ Suspended__ Service 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed Title FOR COMMISSION USE ONLY Date Conditions of approval: Notify Commission so representative may witness Plug integrity __ BOP Test __ Location clearance __ Mechanical Integrity Test __ Subsequent form required 10- JApproval No. Approved by order of the commission Commissioner Date Form 10-403 Rev 06/15/88 SUBMIT IN TRIPLICATE Pictures provided by James W. White on August 4, 2000. Mr. White describes the pictures as the rig he brought up to do work on the McCoy Prospect No. 1 well. He says he plans to use the rig for other work including Work on the Mike Pelch No. 1 well. MEMORANDUM TO: THRU: FROM: State of Alaska Alaska Oil and Gas Conservation Commission Dan Seamount, Chairman Blair Wondzell, P. I. Supervisor ,ou Petroleum Inspector DATE: July27,2.~00,0o ~, _..r SUBJECT: Location Inspection Mike Pelch #1 -,~'///,~ o NON-CONFIDENTIAL Thursday, July 27, 2000; I made a Location Inspection on the Mike Pelch #1 location (formerly Cannery Loop Unit #2) This location has not changed very much since my visit last year. There had been some wireline bailing work done on my previous visit (see 299JFTFE.DOC and 299JGRFE.DOC June/July 1998), % gallon of Muriatic acid and 3 gallons of diesel were left alongside the well head in plastic containers. The elements had been working on these containers and although intact nOw they should be removed before they spill on the pad. One area of concern is again the wellhead. The flowline is arranged as such that it connects to the top (Swab) valve instead of the wing as would be normal. This in itself is no. problem. The flow line is of what appears to be different grades of "line pipe" and I could find no markings on it to indicate its grade. I found one of the "Line" threaded connections bubbling slightly and as there was not a gauge on the wellhead anywhere I can only surmise that full shut-in pressure is on this assembly. In the past this has been in excess of 3500 psi. The grating over the cellar is not secure and there is the good chance of someone falling in. There is also much junk drilling iron left on the location and the contaminated soil from the reserve pit that had been reclaimed and placed in a lined and bermed surface pit has its cover half blown off and is exposed to the elements. Loc Insp Mike P¢lch .doc 1 of 2 This location is in close proximity to inhabited areas and poses a safety as well as a waste hazard. This is a poor example of how a State of Alaska lease should be taken care of and if relevant well work is not scheduled soon the well should be secured with a plug to maintain zero surface pressure. The location should be cleared and cleaned to a presentable condition. Summary: I made a visit to the Mike Pelch #1 location. Problems were noted. Attatchments; Pelch #1 pit.jpg Pelch #1 wellhead.jpg Pelch #1 wellhead 2.jpg Cc; Jim White (Leaseholder) Loc Insp Mike Pelch .doc 2 of 2 pixels ~ ~ Name: Loc Insp Mike Pelch i~Loc lnsp Mike f)eich i Type: Microsoft Word Document (appiiCation/msword) i ~Encoding: base64 i ~ 2 of 3 7/31/00 1:51 PM pixels Subject: reports Date: Fri, 28 Jul 2000 12:02:25 -0800 From: Lou Grimaldi <lou_grimaldi~admin.state.ak.us> Internal Organization: State of Alaska, Dept of Admin, AOGCC To: Blair Wondzell <blair_wondzell~admin.state.ak.us> Hi Blair, I went by the Mike Pelch well and again there is a surface leak. This is a problem child that needs to be dealt with. Lou ~BOP Insp Glacier Name: BOP Insp Glacier - I Type: Microsoft Word Document (application/msWord) Encoding: base64 I of 3 7/31/00 1:51 PM ,80 pixels !~ i Name: 7-31 TA LG.xls 1~?-31 TA LG.xlsi Type: Microsoft Excel Worksheet (application/vnd.ms-excel) ~ i Encoding: base64 ! I Name: 2nd half schedule.xls ~2nd half schedule.xlsi Type: Microsoft Excel Worksheet (application/vnd.ms-excel) I [ Encoding: base64 Louis Grimaldi <lou_gn-imaldi(&admin.state.ak.us> 3 of 3 7/31/00 1:51 PM 7/11/2000 A3_J~S~ WELLS ALSAKAi~ CRUI)E CORP PAGE FIELD CODE 000 000 440 440 OPERATOR ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASK~! CRUDE CORP ALASKAN CRUDE CORP ALASKAlg CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASlQkN CRUDE CORP ALASKAN CRUDE CORP ALASKAlg CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP ALASKAN CRUDE CORP PERMIT 185-053 185-054 184-059 187-070 187-084 185-079 169-077 185-208 186-007 185-124 185-125 185-126 185-127 185-128 185-129 185-130 185-131 185-132 185-133 API NTJMBER 029-21315-95 029-21316-95 029-21106-00 133-20390-95 283-20082-95 231-20009-95 669-20001-00 133-10002-01 133-20333-90 069-20002-00 069-20003-95 069-20004-95 069-20005-95 069-20006-95 069-20007-95 069-20008-95 069-20009-95 069-20010-95 069-20011-95 ACC ACC BURGLIN BURGLIN BURGLIN WELL NAME BFC \ BRX EPPERSON KNOB UNIT KATALLA ST MCCOY PROSPECT MIKE PELCH KATALLA KATALLA KATALLA KATALLA KATALLA KATALLA KATALLA KATALLA KATALLA KATALLA F-02XX F-03XX 33-1 31-1XX 22-1XX 1XX 1 1 1 KS-01 KS-02XX KS-03XX KS-04XX KS-05XX KS-06XX KS-07XX KS-08XX KS-09XX KS-10XX WELL STATUS EXPIR EXPIR SUSP EXPIR EXPIR EXPIR P&A I-OIL 1 -GAS SI EXPIR EXPIR EXPIR EXPIR EXPIR EXPIR EXPIR EXPIR EXPIR STATUS DATE 4/lO/1987 4/lO/1987 3/17/1985 7/31/1989 8/24/1989 4/26/1987 8/21/1969 3/Ol/1986 8/07/1986 10/01/1986 7/01/1987 7/01/1987 7/01/1987 7/01/1987 7/01/1987 7/01/1987 7/01/1987 7/01/1987 7/01/1987 LEASE ADL0318612 ADL0318613 ADL0318614 ADL0369211 ADL0326070 ADL0319686 ADL0034638 FEE SIMPLE FEE-SIMPLE OIL-CLAIM1 OIL-CLAIM1 OIL-CLAIM1 OIL-CLAIM1 0IL-CLAIM1 0IL-CLAIM1 OIL-CLAIM1 OIL-CLAIM1 OIL-CLAIM1 OIL-CLAIM1 TALLY 10 19 3001 PORCUPINE DR. ANCHORAGE, ALASKA 99501 Ph:907-793-1241 / Fax: 907-276-7.542 E-mail: steve_mcmains@admin.state.ak, us To: Jim White From: Steve McMains Fax: Pages: ~ pages (includes cover) Phone: Date: 06/27/00 Re: Shut-in Wells CC.- [Click here and type name] Urgent [] For Review [] Please Comment [] Please Reply [] Please Recycle 1-210-491-0574 · Comments: Jim, here is the page in our new AOGCC regulations I spoke to you Tues June 27, 2000. Call me if you have any other questions. Steve Gentlemen: The newly adopted AOGCC regulations contain a paragraph relating to reporting shut-in production and service wells annually. This is a new regulation and you may not be aware of the requirement. I have enclosed a copy of the paragraph for your information. The report was due on March 31 but in view of the its newness, the Commission will welcome the information as soon as you can file it. We are in the process of reviewing operator filings now. Should you have any questions, call me at the number provided. If I can be of any assistance let me know - Following is the subject regulation: 20 AAC 25.115 SHUT-IN WELLS. (a) No later than March 31 of each year, an operator shall file with the commission a report on completed development or service wells that have been shut in for 365 days or longer as of January 1 of that year. The report must provide (1) the current known mechanical condition of the well, including the condition of installed-tubing and casing strings; (2) the date the well was shut in and the circumstances surrounding the decision to shut in the well; and (3) an analysis of the future utility of the well. (b) The commission will require an operator of a shut-in well to file additional information as the commission considers necessary to ensure that freshwater and hydrocarbon sources are protected. 'History - Elf. 11/7/99, Register 152 Authority - AS 31.05.030 If this email should be sent to another person in your organization, please let me know. Thank you for your help and cooperation. Sincerely, Jack Hartz of 4 6/27/00 2:00 PM **~'~'~ ~"-" TRANSAOTION REPORT JUN-2?-OO TUE 04: 04 Pl~ ~ SE~ (~) NOTE ~ ~ TI~ PAGES TYPE ~~ 051 ~ D~TE STfiRT REOEI~R T~ (~) OK ~ 2' 55" 2 SE~ ~ ~ ~ TOTAL 2~ 55S P~ ~ 3001 PORCUPINE DR. ANCHORAGE, ALASKA 99501 Ph:907-793-1241 / Fax: 907-276-7542 E-maih steve_mcmains@admin.state.ak, us Jim White From: Steve McMains Fax: 1-210-4'91-0574 Pages: pages .-(includes cover) Phone: Date: 06/27/00 Re: Shut-in Wells CC: [Click here and type name] . . U~ent [] For Review El Please Comment I-I Pleas,, ~--' ..... · MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Robert Christenson, Chairman DATE' November 25, 1999 THRU' FROM' Blair Wondzell, ~ff P. I. Supervisor Lou Grimal ,~/o-c~ Petroleum Inspector SUBJECT: Facility Inspection Mike Pelch #1 P.T.D. ~8~-~_~_______~7 Tuesday~ November 23 1999; I made a facility inspection on the Mike Pelch #1 well in Kenai. There was a small gas leak at the hammer-up tree cap, I cycled the swab valve which seemed to not have any effect on the leak. As there was no gauge on the tree I could not tell how much pressure was on the cap, in the past I have observed close to 3000 psi shut-in pressures on this well. The master valve was inaccessible due to a lock- block installed over the handle, which precluded me from checking it. There is a flowline that emerges above the swab valve and is subjected to this pressure. The line has welded joints with the exception of a 3" line thread and two ¼ N.P.T. fittings with ¼ turn ball valves installed in them. These valves are not plugged on the outboard side and bled gas profusely when opened. This situation should be remedied before a hard winter sets in. The steel of the tree will cool and warm with the ambient temperature and the leak at the tree cap will most likely get worse and eventually wash out the threads on the tree cap itself. Although I saw no evidence of other visitors to this location, it is possible for someone to open one or both of the 1/4 turn valves and create a hazardous situation, not to mention the loss of product. I suggest a back pressure valve be installed in the tubing hanger and the tree depressurized to zero. The Line pipe flow line should be removed and a blind flange put in its place. The location was in the same shape as my previous inspection and seemed to be faring quite well. I will keep in contact with this location and further reports shall be forthcoming. SUMMARY: I made a facility inspection on the Mike Pelch #1 well in Kenai. A gas leak was found on the tree. Attatchments; Photographs NON-CONFIDENTIAL LOCATION INSP MIKE PELCH MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: THRU' DATE: June 19, 1998 David Johnston, Chairman Blair Wondzell, ~ P. I. Supervisor ¢/ Lou Grimaldi,/~,~-~ Petroleum Inspector FILE NO: 299JFTFE.DOC FROM' SUBJECT' Facility Inspection Mike Pelch #1 Friday, June 19, 1998; I made a facility inspection on the Mike Pelch #1 well in Kenai. I found a-wireline unit rigged up on the well in the middle of a bailing operation. Jim White (Owner/Operator) was on location and explained that while he was flow testing the well, he "pulled a little to hard" on the well and sanded up the tubing. Mr. White showed me samples of what appeared to be Drilling Mud, Sand, sandstone, quartz and other rocks that were bailed out of the well. Some of the pieces I saw were quite large (2") and would have a hard time fitting through casing perforations. I asked Mr. White to notify me when the tubing was cleared and he was ready to resume flow testing the well. which he agreed to do. On a related note Mr. White spoke of connecting to an Enstar pipeline in the future. This will be another Custody Transfer point and may have to be added to our schedule for calibration. The location was in the same shape as my previous inspection and seemed to be faring quite well. I will keep in contact with this location and further reports shall be forthcoming. SUMMARY: I made a facility inspection on the Mike Pelch #1 well in Kenai. I found wireline work in progress. NON-CONFIDENTIAL MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: David Jo~~, Chairman~'' THRU: Blair Wondzell, P. I. Supervisor FROM- Lou Grimaldi,~_ Petroleum In§pector DATE: September 23, 1997 FILE NO: 299JIVEE.DOC SUBJECT: Facility Inspection Jim White's, Mike Pelch #1 Kenai Area PTD# 86-0007 Monday, September 22, 1997; I made a facility inspection on the Mike Pelch #1 well in the Kenai area. This is an on-going inspection. I drove to the location and walked in from the gate at the end of the lease road, (approx. 1.5 miles), the gate appeared to have been pulled from its foundation for access and replaced temporarily. The location has changed from the last time I had inspected it in the following ways; 1) There was a pile of drilling additives, previously on the South-East side of the pad adjacent to the access road, these are now gone with the exception of some Lost Circulation Material which has been moved to the North-East side of the pad by a assorted collection of junk drilling iron, (Draw-works, Koomey unit, Drillpipe, completion equipment.). 2) A large, bermed and covered pile (approx. 30' x 50') on the SouthWest side of the pad. This may be a remediation pit, I did not disturb it. 3) The pad has been graded smooth, but not quite fiat. 4) A small, Gas Dehydration unit has been moved onto the pad. It was not attached or connected to the well in any fashion. I will check on this location as time permits this week and add to this report as necessary. 299JIVEE.DOC Page 1 of 2 299JIVEE.DOC Page 2 of 2 Monday, September 29, 1997; I returned to the Mike Pelch #1 location to check on the progress, if any, on this well. I found no changes to the location with the exception of a possible set of tire tracks that ran down the lease road, The well, Dehydration unit, and other equipment seemed undisturbed. Thursday, November 6, 1997; I returned to this location to again check on the progress here. I found a temporary flare line constructed of five joints of 2 ½ drill pipe attached to the riser connected to the swab valve on the tree. There was evidence in the way of a burn pattern, gouged ground, and melted snow that indicated that this well had been flared in the recent week. Of interest I noticed some red muddy remains in the trough that the flare had cut. This may have been rust and pipe scale that had been flowed out of the well. The well was somewhat secure, a gauge on the top of the tree showed 640 psi. I noticed that there was a slight leak (gas) coming from an outboard needle valve. I closed an inboard ¼ turn valve that stopped this. There has also been an additional dehydration unit brought in and placed next to the original one found on my first inspection. This one appeared to be placed on a poured concrete pad and bolted down. Neither unit had been connected to the well in any fashion. It would have been interesting to have been on hand during this wells flaring, SUMMARY: Attachments: NONE. NON-CONFIDENTIAL MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: David Johns~ Chairman DATE: September 23, 1997 Ongoing THRU: Blair Wondzell, -~~ FILE NO: P. I. Supervisor '¢,/'~ol'~z- FROM: Lou Grimaldi,~z~'~ SUBJECT: Petroleum Inspector 299JIVEE.DOC Facility Inspection Jim White's, Mike Pelch #1 Kenai Area PTD# 86-0007 Monday, September 22, 1997; I made a facility inspection on the Mike Pelch #1 well in the Kenai area. This is a on-going inspection. I drove to the location and walked in from the gate at the end of the lease road, (approx. 1.5 miles), the gate appeared to have been pulled from its foundation for access and replaced temporarily. The location has changed from the last time I had inspected it in the following ways; 1) There was a pile of drilling additives, previously on the South-East side of the pad adjacent to the access road, these are now gone with the exception of some Lost Circulation Material which has been moved to the North-East side of the pad by a assorted collection of junk drilling iron, (Draw-works, Koomey unit, Drillpipe, completion equipment.). 2) A large, bermed and covered pile (approx. 30' x 50') on the South-West side of the pad. This may be a remediation pit, I did not disturb it. 3) The pad has been graded smooth, but not quite flat. 4) A small, Gas Dehydration unit has been moved onto the pad. It was not attached or connected to the well in any fashion. I will check on this location as time permits this week and add to this report as necessary. Monday, September 29, 1997; I returned to the Mike Pelch #1 location to check on the progress, if any, on this well. I found no changes to the location with the exception of a possible set of tire tracks that ran down the lease road. The well, Dehydration unit, and other equipment seemed undisturbed. MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: David John~~' DATE: Chairman ~ September 23, 1997 THRU: FILE NO: Blair Wondzell, ~~ P. I. Supervisor '~/' FROM: Lou Grimaldi?~- SUBJECT: Petroleum In~,pector 299JIVEE.DOC Facility Inspection Jim White's, Mike Pelch #1 Kenai Area PTD# 86-0007 Monday, September 22, 1997; I made a facility inspection on the Mike Pelch #1 well in the Kenai area. This is a on-going inspection. I drove to the location and walked in from the gate at the end of the lease road, (approx. 1.5 miles), the gate appeared to have been pulled from its foundation for access and replaced temporarily. The location has changed in a few ways from the last time I had inspected it in the following ways; 1) There was a pile of drilling additives, previously on the South-East side of the pad adjacent to the access road, these are now gone with the exception of some Lost Circulation Material which has been moved to the North-East side of the pad by a assorted collection of junk drilling iron, (Draw-works, Koomey unit, Drillpipe, completion equipment.). 2) A large, bermed and covered pile (approx. 30'x 50') on the South-West side of the pad. This may be a remediation pit, I did not disturb it. 3) The pad has been graded smooth, but not quite flat. 4) A small, gas Dehydration unit has been moved onto the pad. It was not attached or connected to the well in any fashion. I will check on this location as time permits this week and add to this report as necessary. SUMMARY: Attachments: NONE. NON-CONFIDENTIAL TONY KNOWLE$, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 August 17, 1995 Mr. Jim White c/o Ely & Havelock Attys 608 W. 4th Ave. Anchorage, AK 99501 Re: Well Mike Pelch No. I - Surface Location Dear Mr. White: On July 7, 1995 our inspector visited the surface location of Mike Pelch Well No. 1. He reported that a needle valve on the tree cap has been removed and should be replaced (no gas or fluid loss was noted). He also reported that the gravel in the pit area appears to be subsiding and that approximately 8-10 55 gallon drums on location that have fluid in them, they show evidence of weathering and corrosion. The drums should be emptied and removed. David W. Jo~q,~ston \ ~ Chairman Enclosure A:\BEW/jwmp.doc ~jb MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission .:. TO: David Johns~..~~' Chairmanr DATE: July 7, 1995 THRU: Blair Wondzell,~,~ FILE NO: P. I. SuPervisor FROM: Lou Grimaldi,/(4"~ SUBJECT: Petroleum Inspector 299JGGCD.DOC Location Inspection Mike Pelch #1 ~-.x__. Cannery Loop Friday, July 7, 1995: I inspected the suspended well Mike Pelch #1. I found the location to be in relatively the same condition as my last inspection. A few areas i noticed as needing attention are as follows; 1) Two large piles of what appears to be contaminated gravel have had their rain covers blown off and are being saturated by the recent rains. 2) A needle valve on the tree cap has been removed and should be replaced (I did not notice any escaping gas from the opening). 3) There are approximately 8-10 55 gallon barrels on location that have fluid in them and are showing evidence of weathering and corrosion. These should be emptied and removed from location. 4) The area where the pits had been reclaimed the gravel is appearing to be subsiding and is substantially lower than the rest of the pad. I do not see any immediate problems with this but in the future may present itself as a collecting point for ground water. Other than the above mentioned areas the"~-"e~nd its surrounding location appear to be well secured. J SUMMARY: I inspected the suspended w~oi~ike Pelch #1 and found a few items that ~of attention. ~ ~ Attachments:None ~...~ )~(~~,~~~ ~/ MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: David Johnst~~~' Chairmanr DATE: July 7, 1995 THRU: Blair Wondzell, ~,~,. FILE NO: P. i. SuPervisor 'zfi¢.l~)~- FROM: Lou Grimaldi, ~(ff,~ SUBJECT: Petroleum Inspector 299JGGCD.DOC Location Inspection Mike Pelch #1 Cannery Loop PT I;/ Friday, July 7, 1995: I inspected the suspended well Mike Pelch #1. I found the location to be in relatively the same condition as my last inspection. A few areas I noticed as needing attention are as follows; 1) Two large piles of what appears to be contaminated gravel havE.~a~d their rain covers blown off and are being saturated by the recent rains. Opo,~o~ b,,'~ ro~,~:[.,-~,'~=-- 2) A needle valve on the tree cap has been removed and should be replaced (I did not notice any escaping gas from the opening), cd///' re?£~c~ 3) There are approximately 8-10 55 gallon barrels on location that have fluid in them and are showing evidence of weathering and corrosion. These should be emptied and removed from location. ~&.~//! ~[~.,~,,~ ¢-/). 4) The area where the pits had been reclaimed the gravel is appearing to be subsiding and is substantially lower than the rest of the pad. I do not see any immediate problems with this but in the future may present itself as a collecting point for ground water. Other than the above mentioned areas the w~,~nd its surroundingTocation appear to be well secured. SUMMARY: I inspected the suspended w,~~ike Pelch #1 and found a few items that ~of attention. F~ r A;?~h~m.~t~i,~N°ne MEMORANDUM State .of Alaska Alaska Oil and Gas Conservation Commission TO: David Joy__ton, DATE: Chairrr~~ THRU: Blair Wondzell ~t~'~ FILE NO: G99JJNBD.DOC '/~ lc,/I~ ,( P. I. Supervisor FROM: Lou Grimaldi, ,~ SUBJECT: Petroleum In~ector October 13, 1994 Location Inspectio~.,,~.. Mike Pelch #1 ~ .-' ,. Cannery Loop Thursday, October 13, 1994: ! traveled to the Cannery Loop area of Kenai to confirm the present status of the Mike Pelch #1 well. I walked to the well site from the road and found it as I left from my last inspection;the well is still secured with a lock block on the master valves which precludes their being opened without the key. The reserve pit had been reclaimed and somb..~,hat contoured to the surrounding area although the well is still located on a elevated pad. The remaining drilling debris has been stacked as neatly as possible off the edge of the pad. There was two mounds of dirt and gravel on one side of the pad that had been tarped. ~ SUMMARY: I made a location inspection on the Mike Pelch #1 well. Unocal Energy Resour~F ¥ision Unocal Corporation 909 West 9th Avenue, RO. ~-O~ 196247 Anchorage, Alaska 99519-6247 Telephone (907) 276-7600 Facsimile 263-7698 Kevin A. Tabler Land Manager Alaska UNOCAL October 29, 1993 Alaska Oil & Gas Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 ATTN' Russell A. Douglass, Commissioner RE: ..Peich-;:Pr0perty Gentleman' In connection with Union Oil Company of California (UNOCAL) acquisition of the Pelch prOperty, we are enclosing the. following instruments for your records: . Statutory Warranty Deed dated January 26, 1993 executed by MICHAEL J. PELCH, SR. as Grantor and UNION OIL COMPANY OF CALIFORNIA, as Grantee. Said instrument was recorded in the Kenai Recording District on February 25, 1993 at Book 413, Page 378-379. . Corrected Deed executed by MICHAEL J. PELCH, SR. which was recorded on September 17, 1993 at Book 427, Page 167 in the Kenai Recording District. 3. Copy of "Affidavit of Notice of Nondelivery and Nonacceptance of September 1993 Deed" which is in the process of being recorded in the Kenai Recording District. If you desire any additional information, please feel free to call me. ery truly yours, '?-~(evin A. Tabler N O'V '- I 1993 Alaska 0il & Gas Cons. CornmissiO¢~ Anchorage MEMORANDUM STATE OF ALASKA ALASKA OIL AND GAS CONSER VA TION COMMISSION TO: David Johnst,~ Chairman THRU: Blair Wondzell P.I. Supervisor FROM: Lou Grimaldi Petroleum Inspector DA TE: October 26, 1993 FILE NO: GQ9JJSAB.doc PHONE NO: 279-1433 SUBJECT: Inspection of Mike Pelch #1 Wednesday, October 20, 1993 I traveled to the Mike Pelch #1 location, to ascertain it's condition. Histow I had made a previous inspection of this location and had found it to be in very poor shape. This was due to the poor condition that Far North oil and gas had left the location. There was a Workover rig left standing unattended over the well, pipe scrap and mud additives lying around, and just generally poor housekeeping. The wellhead had not been properly left and was leaking gas out of grease port's on the tree. The tree was repaired and a competent back pressure valve installed after we contacted Jim White (who was out of state) with myself doing most of the leg work for him. In my investigation I found that Unocal ha§-~"~bhased the land surrounding the well and is in the process of reclaiming the old reserve pit used when the well was originally drilled as Cannery'Loop # 2. They have also began cleaning up the mess that Far North Oil and Gas had left behind. The pipe scrap and rig debris has been gathered up and placed neatly in one corner of the pad. The rig has been removed, and the mud additives have been placed on plastic to keep ground contamination from progressing further. The tree was in the shape that I left it last year,with the exception ,. the locking mechanism used to secure the master valves on the tree was in need of another lock, I purchased this and installed it. I installed a tubing pressure gauge and found zero pressure above the top master valve. SUMMARY; I found the wellhead on Mike Pelch #1 to be in good shape and I replaced a lock used to secure the master valves. STATUTORY WARRANTY DEED (AS 34.15.030) The Grantor, MICHAEL J. PELCH, SR., of 2990 Sorrel Way, Eugene, Oregon 97401, for and in consideration of the sum of Ten and no/100 Dollars ($10.00) in hand paid, does hereby grant, convey and warrant unto Grantee. Union Oil Company of California, whose address is I Z m% ~~ ~z~ ~ ~.A. ~. ~ool~ , all of that certain real property situated within the Kenai Recording District, Third Judicial District, State of Alaska, more particularly described as follows, to-wit: Lot Five (5), Block One (1), PELCH SUBDIVISION, PART ONE (1) according to Plat No. 80-18 located in the Kenai Recording District, Third Judicial District, State of Alaska. and That portion of the Southeast one-quarter of the Northeast one-quarter of Section 2, Township 5 North, Range 11 West, Seward Meridian, Alaska, lying northwesterly of Beaver Loop Road right-of-way; excepting therefrom Pelch Subdivision, Part 1, according to Plat 80-18 filed in the Kenai Recording District. record. SUBJECT TO easements, restrictions and reservations of SUBJECT FURTHER TO the following: · Reservations and exceptions as contained in United States Patent and/or in acts authorizing the issuance thereof. · Highway reservation 50 feet on each side of the centerline of Beaver Loop Road as claimed by the State of Alaska, or its successor in interest, pursuant to Public Land Orders 601, 757 and 1613 and Department Order 2665 issued by the Secretary of the Interior of the United States of America. . Reservation of section line easement 33 feet in width along each side of section line as provided by 43 USC 93 and reenacted by 1721 CLS 1933. 4. Memorandum of Oil and Gas Lease including the terms STATUTORY UARRANTY DEED Pe{ch / Unocal Page 1 NOV - 1 199 Alaska 0il & 6as Cons. CommissiO~- Anchorage and provisions thereof: Lessor: Michael John Pelch, etux Lessee: James W. White, et al Dated: July 7, 1983 Recorded: September 26, 1986 Book/Page: 297/006 Dated this ~4~- day of January 1993. Mi6hael J. ~lch, SR. State of Oregon ) SS. County of ~~ The foregoing instrument was acknowledged before me ~+~- day of January, 1993, by Michael J. Pelch, NOTARY PUBLIC FOR OREGON My Commision ex~_ires: Residing at: ~-t~_~~. ~ / this SR. I ~~ ~ ~. ~oR~u~ I ~-~'~ NOTARY PUBLIC - OREGON I ~-----------------~ CO~SmON NO.00~O /,. -- 934192 ,SEC DISTRICT REt'"' STED BY' '/'T' · 93 FEB 2 5 NOV - '1199~i Alaska Oil & Gas Cons. '-"--%:..J 3--7 't '-t 5 °93 SE? 1T lO q6 REC .IVEg IBUI::U% PEAS~ & KUR'rZ W~Y DE2D CORRECTED DEED The Grantor: MICHAEL J. PELCH, Sr., of 2990 Sorrel Way, Eugene, Oregon 97401, for and in consideration of the sum of TEN DOLLARS ($10.00), in hand paid, does grant, convey and warrant unto Grantee, UNION OIL COMPANY OF CALIFORNIA, 1201 West 5th Street, Los Angeles, California 90017, all of that certain real property situated within the Kenai Recording District, Third Judicial District, State of Alaska, more particularly described as follows: (The legal description for the remaining portion of the SE 1/4 NE 1/4 Section 2, T5N, RllW, S.M., Alaska, excepting lots 6 and 7, sold in 1983 and 1984, embracing 37.40 acres is as follows:) The SE1/4 Ne/14 Section 2, T5N, RllW, S.M., Alaska, except Lots 6 and 7, Block 1 Pelch Subdivision Part One and the 33 foot right of way dedicated as 49th Avenue S.E. and the right of way for Beaver Loop Road as shown on tzhe plat No. 80-18 filed in the Kenai Recording District, Alaska, embracing 37.40 acres more or less. SUBJECT TO EASEMENTS, RESTRICTIONS AND RESERVATIONS OF RECORD. SUBJECT FURTHER TO THE FOLLOWING= 1. Reservations and exceptions as contained in the United States patent and/or in acts authorizing the issuance thereof. 2. Highway reservation 50 feet on each side of centerline of Beaver Loop Road as claimed by the State of Alaska, or its succesor pursuant to Land Orders 601, 757 and 1613 and Department Order 2665. 3. Highway reservatiou of Section line easement 33 ft. right-of- way dedicated as 49th Avenue SE (Aimes Street). 4. The Grantor, MICHAEL J. PELCH, SR. and heirs and assigns with rights to survivorship further reserving ONE HUNDRED PERCENT (100%) of the mineral rights (oil and gas) in or under said FORTY (40) acres including the right to enter on the land and explore or drill the same. 5. Memorandum of oil and gas lease including the terms and previsions thereof: Leasor: Michael J. Pelch, Sr.; Lessee: James E. White; Dated: July 7, 1983; Recorded: September 26, 1986; Book/Page: 297-006. ~.~0V ) ss. THZRD ' JUOZCZAL DZSTRZCT ) vo[mta~1~y STATE MY ~ .......... ~ UDICIAL DiS,RIOT 2990 Sorrel Way '~ v~mM~UIQN-'~IRES: 5/~97 Eugene, Oregon 97401 - BURR, PEASE & kURTZ A PROFESSIONAL CORPORATION 810 N STREET ANCHORAGE. AK 99501 (907) 276-6100 AFFIDAVIT OF NOTICE OF NONDELIVERY AND NONACCEPTANCE OF SEPTEMBER 1993 DEED STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) I, KEVIN A. TABLER, being first duly sworn, state upon oath: 1. I am employed by Union Oil Company of California (herein "UNOCAL") as Land Manager and Attorney-in-Fact and have access to the business records of UNOCAL. 2. According to the business records of UNOCAL, UNOCAL accepted the Statutory Warranty Deed recorded on February 25, 1993, in Book 413, at Page 378, in the Kenai Recording District, Third Judicial District, State of Alaska concerning the following described property: Lot Five (5), Block One (1), PELCH SUBDIVISION, PART ONE (1) according to Plat No. 80-18 located in the Kenai Recording District, Third Judicial District, State of Alaska. and That portion of the Southeast one-quarter of the Northeast one-quarter of Section 2, ~E~EtV~ Township 5 North, Range 11 West, Seward '~. Meridian, Alaska, lying northwesterly of Beaver Loop Road right-of-way; excepting NOV-~'~99~ therefrom Pelch Subdivision, Part 1, according to Plat 80-18 filed in the Ken~ka0Ji&GasC0ns. O0m Recording District. Anchorag~ from Grantor, Michael J. Pelch, Sr., of 2990 Sorrel Way, Eugene, Oregon 97401, to Grantee, Union Oil Company of California, whose address is 1201 West 5th Street, Los Angeles, California 90017, and said deed was delivered to UNOCAL in February 1993. 3. I am informed that a Warranty Deed was recorded in the Kenai Recording District, Third Judicial District, State of Alaska on September 17, 1993, in Book 427 at Page 167, describing the following real estate: (The legal description for the remaining portion of the SE 1/4 NE 1/4 Section 2, T5N, RllW, S.M., Alaska, excepting lots 6 and 7, sold in 1983 and 1984, embracing 37.40 acres is as follows:) BURR, PEASE & KURTZ A PROFESSIONAL CORPORATION 810 N STR£ET ANCHORAGE, AK 99501 (907) 276-6100 The SE1/4 Ne/14 [sic] Section 2, T5N, RllW, S.M., Alaska, except Lots 6 and 7, Block 1 Pelch Subdivision Part One and the 33 foot right of way dedicated as 49th Avenue S.E. and the right of way for Beaver Loop Road as shown on the plat No. 80-18 filed in the Kenai Recording District, Alaska, embracing 37.40 acres more or less. with Grantor listed as Michael J. Pelch, Sr., of 2990 Sorrel Way, Eugene, Oregon 97401, and Grantee listed as Union Oil Company of California, 1201 West 5th Street, Los Angeles, California 90017, (herein "September 1993 Deed"). UNOCAL. . The September 1993 Deed was not delivered to UNOCAL. · The September 1993 Deed was not accepted by DATED UNION OIL COMPANY OF CALIFORNIA Ke~in A, Tablet, hand Manager and Attorney-in-Fact STATE OF ALASKA ) THIRD JUDICIAL DISTRICT ) The foregDing.instrument was acknowledged before me this ~Jq day of ~ , 1993, by Kevin A. Tabler, who is Land Manager and Attorney-in-Fact of Union Oil Company of California, a California corporation, on behalf of the corporation. RE(E]VED NO -A Y PUBLIC f OR My commission expires: ~-~-q~ After recording, return to: NOV- I 1993 AnnC. Liburd Burr, Pease & Kur%z Alaska 0ii & Gas Cons. CommissiO810 N S t: r ee t Anchorage Anchorage, Alaska 99501 Affidavit of Notice of Nondelivery and Nonacceptance of September 1993 Deed - 2 108/ACL/76-174 ALASKA OIL AND GAS CONSERVATION COMMISSION WALTER $. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPY: (907) 276-7542 November 5, 1992 Mr. J.W. White 550 Gulf Boulevard, CL8, Box 3 South Padre Island, TX 78597 Dear Mr. White: As we discussed today on the phone, the AOGCC will be reassigning API numbers on the Mike Pelch No. 1 Well on the Kenai Peninsula. Since the operatorship designation issue has not been resolved, I am notifying you as agent for the leaseholder. In order to remove duplicate records from our databases and well files, we will change the ni~mber for the following well: Well Name Permit # Old API Number. New AP1 Number Mike Pelch No. 1 86-7 50-13320333 50-13320333-90 We will not announce these changes to the public until the first week of December, 1992. Give me a call if you would like to discus.,; this matter further or if you have any questions. Sincerely, Jack Hartz Petroleum Reservoir Engineer ALASKA OIL AND GAS CONSERVATION COMMISSION September 15, 1992 WALTER J. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (g07) 279-1433 TELECOPY: (907) 276-7542 J. W. White 5500 Gulf Boulevard, CLS, Box 3 South Padre Island, TX 78597 Dear Mr. White: The Commission is returning your "Application for Sundry Approvals" (10-403) filed for the Mike Pelch No. 1 well. We became aware of the valve leak on the tree of this well on September 2, 1992. Since there is not yet a properly designated operator for this well, the Commission contacted you as agent for the leaseholder, James White et al. In the ensuing conversations with you, the Commission gave verbal approval to you, as agent for the leaseholder, to "fix" the problem by setting a downhole tubing plug. You agreed this was the best solution to the problem and to submit a 10-403 as required by regulation. The 10-403 you submitted identified Intrepid Production Co. as operator of the well, and was signed by someone we assume to be an officer of same. Since Intrepid Production Co. has not met the requirements of 20 AAC 25, it cannot be recognized as an operator by the Commission; so the application you sent us is in error. Therefore, the Commission requests that you resubmit the application with: 1) your name and address in items 2 and 3; and 2) your signature, or designation of authority to an agent of your choice and appropriate signature in item 17. Sincerely, -- Chairman .. APPLICA .ON FOR SUNDRY APPi...,VAI.S . ,' " .... _ , ii__ i .... - .... I ~ , , I l 11.Type of Request: " Su d ..._ OI3am~ion ~tdown __ Re. on,er .~usl;3ended v~ __ ~ . . 1. TypeotRequell: ADanO0~;~__ ~eses~rwetl..z~' .Plugging_.... mimlexlens,on...-7 St~nulale_.._ .~ ~,.,.J. I ~~Hz~n~_..~ ~,..._ ~,,,~.,/Uter ca~ g ~ Or fun Pull ruing _.. Variance ._ ~enotale __ otrmf,~. --'"__'-' ...~_.~-~. ~ ~,, .... , ,,-', .... ,,.,, i 5. T~um elevation (DF or F I .... '~ .... ""'"~ ..... ----~ -._~ .,.-,-.,,~ .,'~ ~,,7,, I o~e~{.,~ · '~"-'~'~Y~-.'~'"' ~-~.--~' ~-".T._~ ' :__~,_..-..P I Sew, ce i 'r-... ..... ~ Cd _,.~.- ~,.,,, . r- .~.~-~,~.,~- ? /. j- - __ - rf ce c,, . ~ ~C -, -,~ ~::F~' 8. Well numOer ~'~---H - ...(03_ .... Z~ ~--. ~,..,T~'I',~.~ i~il <w,.3. ~,.I'-R, k ~A~N~. At tOl~ of productive ~ntervat -, .~. · "9. Permit hum/,l~:~.r ' At etfectiv~ depth ~ ~.~ O',F(' ~ 10. APl number Al total cleptn ~ ~ 1 ~ W"T- [-'~" ~ I,.-..~ 11. F~eldlPool . . .. · .i - - 12. Pres~ntTvv~l condition summarY I Totaldepln: measure~l I ~ ~'74~:) feel Plugs(measure<l) / C:~/OO "j-o j O, '2,/7/43 true vertical fee~ Effective dept~: measured / ~r.~/'7,~0 feet Juflk (mealura<t) true vertical fee{ C a.~ng Length Size Cementocl Measum~t <:leplh True vefti<~ Structural Concluctor =t ,~ ~ " Surfaco ~---$ ~&./ ~..3-'3/'~'' I ~' ~ '~< "~..~1~../,, ' 'z.~Iz, s / / -" Inten'nediate E~f,,I ~0 cj., ~//~ t, ~ o o '~ ~lOO. , ~ Linlt P(~rforali~deplll: measuroO oI .~..~G-i'~,c. t3.'7 J,,"~,3~ ~3 lID true vertical ~ ~ ~ '~ I,-.I ~ Tu~ng (size, grado, and measumM dep~) ~._ ~///'~2" t',/ '- ~50 ~ ~ o ' Paci<efsan¢lSSSV(typeandmeasure¢ldep~) ~/2,.;r-~_.<,~J~- '~ ~ETP,~'~.G~,,~' ~_.~.~ c:~ .... I _ i Iii ~ A~:~ C3_~scription aumma~ o~ prm3m~ i Deified ormra~ion. ~a]mm._. -80P aka4~ ._ 14. E~limated date for commencing o0eratlo~ I 'ltt Ifproposalwal-verballya~KN'~ld ~~ - ='w'*;,--~.i c~_ ~N.~ su,~.~_ SEP ~ 1 1992 _ Nameda~ P. ~l+t,J,T~.. ~ Oal~~i :_: .... .~°~.k, 0il' Gas Cons. Comm'fs'o~ ~nchorage --1~. I hereOy ceMity thaFthe fomgctng is tr~e and eob'eot to t~e b~t ol my ~ I I_1 lin Co~itions .d, a _.ptEov~i. Notify Commi. _s~? ~ re~reeenm~ve, me/wam~ mug ,megrity _. _ BOP Teal ~ ~ Oel~' .anon. __. No, , AllOyed ~ ofclor ot 1tm Cc)n~niNio~ II · ............ illIililllilllllllllllll~lll~lllii, llililillllllllllll I",I IVlE)Iq NDUIVl -ts e o f 1 k ALASKA OIL AND GAS CONSERVATION COMMISSION TO: Dave Jotlnston~ Come i ss i o ne~:~~ DATE: 9-3-92 THRU: B] air E Wondzel 1 Sr. Pert. Engr- FROM: [.~ou Grimaldi Petr Inspector SUBJECT: Investigation of gas leak on Mike Pelch Wednesd~% 9-~-9P_ I traveled to Kenai to investigate a report from th,~_~ S~ldotna D.E.C. office that there was gas leaking from t~e tree on gas well M~ke Pelch ~1 (formally known as Cannery Loop f~2) . When I arrived (approx. 1800 hrs.) I found that the crown valv~ on the tree was leaking from one of the grease ports on the body and possibly from a flange on the wing valve. Lowell Hadde~ (Precision Wireline Co.) arrived while I was on location and tried to bleed the surface pressure from the well numerous times with no success. At this time Mr. Hadden felt ttlat there was nothing more he could do with the equipment he had on hand. Since both gauges on the tree were broken, a accurate surface pressure could not be obtained; one of the gauges read 3900 P.S.I. I contacted 'Dave Johnston (Chairmen A.O.G.C.C.) and was advised to stand by until morning. THLIR\FRI_ ._9.53\4-98 Through various phone calls between the commission, Jim White ' of record), and myselF, it was cletermined that a backpressure valve would be installed in the tubing hanger of this well. SATURDAY 9-5-9~ I met Steve Lawrence of I ISCO. services at t~e locat~on~ The surFa,,e pressure would not bleed off at first~ bl~t after cycling the master valves three times, they held and the wellhe~d pressure was bled oFF. On the first attempt to set a Cameron 3" type "H" BPV, there was a small amount of leakage around the valve seals and it was de~ided to pull the valve, redress and reset J t. While equalizing the valve, a substantial leak occurred at the tree\tubin~ hanger flange: we disc:ontinued equalization and tightened tile flange which stopped the leak. The BPV was pulled and although th'e seals still looked good they were replaced and the valve was reset. 'Fhere was st~ll t:~e same amc)unt (;f seepage; after d~scussion -wit~ t~e tT'ee hand, we thought the small leak may be coming t~rol~gh t:~e tubing hanger outer seals from the annulus below. It w,~s at this time I noticed that there was not a competent valve on the annulus, only a single "Lo Tore" type valve with "WECO" ~ammer up unions. Due to the age and type of the valve~ ] 'fei t it unwise to open it to ct;ec:k for pressure behind it I"c)~' i:e.a~- ,)~ ~.~ ~c,t sealing iF there was pressure behind it. We 1(.,( ,,i.~,~1 ,~LI~,~ "1 ~ l~r ~" v,,Iv~, and ~nstalled it outside of the exis-tt~j valve and capped tl~e end. As a l)o~i, of interest~ J~m White contacted me the following day an~l informed me he would change out these valves witl~ a (.]ate type va] The master valves were greased and seemed to have ~ntegr~ty. Tl~e ~.:r'~.~w~ valve was a 3500 psi rated valve and was not put bat. l< on tile tree. As we could n~t find a blind flange, the rlt)w ~.i,~e was nit-~pled back up and a needle valve and gauge ir~sta]]ed or~ top. We observed the wellhead for leakage for thirty m~Jltes; we then r~gged dowi~ and left the location. 'lhe 'f'~)]c~w~g w~ll be of ~nterest when the well is to be T-ee~be~'e,:t; the back pressure valve is a Cameron 3" type "H" one--way check with approximately A400 psi beneath it. The tree ~ad appr~ximabely ~e gallon oF antifreeze poured on top of tl~e t)acl< pressure valve to inh~bit corrosion of the valve. ~_u.~!~._~Cy A back pressure valve was placed in the tubing hanger on Mik~_~ Pelch ~1~ the master valves were greased, the low p~ess~lre cr~:~wn vaiv~ was removed~ and a ~nd Lo Torc valve was i~stalled i.~ series with the existing one on the casing head; tt~e tree was r~o longer leaking gas. I15CO Machine, Inc. ~OO AIRPORT WAY KENAI, AK 99611 907-283-5620 FED. I. D. NO. 92--0058974 vice Order N? -1369 ORDERED BY ~ PURCHASE ORDER NO. J L REFERENCE/OCS. NO, · BIL/L' TO ' SHIPPING METHOD SHIP IO WELLHEAD' SIZE MAKE ' S/N I' ' ' I SIZES MODEL TRIM S/N J W.P. VALVE I ~ ~c;~, ,~~ ~" z_~ ~/ /~c ~cv( ~~ '~~, SPEC~ IN~TR./S ~ ~EMARKS' ' .... / i i i ii] i ii I I · i I ITEM QTY ITEM NO, DESCRIPTION UNIT PRICE EXTENDED PRICE , ~, , , TOTAL PARTS ,~NO FROM' HR & DATEi TO: HR & DATE NO. HOURS LABOR ~')~' ~=T~ .J ...~'~ MILEAGE ~ MILE I hereby accept above performed service, and charges, as being satisfactory and acknowledge thal equipmenl has been left. in good condition, IAL$ RATE FREIGHT TAX iTOTAL CHARGES ALASKA OIL & GAS CONSERVATION COIVI~ISSION 3001 Porcupine Drive Anchorage, Alaska 99501 PH: 279-1433 FAX: 276-7542 To: FAX TRANSNLITTAL SHEET Number of pages including cover sheet ~ . .. · . If you do not receive this fax in its entirety, please call (907) 279-1433 immediately. . .... STATE OF ALASKA A L,,~KA OIL AND GAS CONSERVATION COM M Ibu,ON APPLICATION FOR SUNDRY APPROVALS 1. Type of Request: Abandon __ Suspend __ Operation shutdown __ Re-enter suspended well __ Alter casing __ Repair well __ Plugging __ Time extension __ Stimulate __ Change approved program ~ Pull tubing __ Variance ~ Perforate __ Other 2. Name of Operator 3. Address 4. Location of well at surface At top of productive interval At effective depth At total depth 5. Type of Well: Development Exploratory Stratigraphic Service 6. Datum elevation (DF or KB) 7. Unit or Property name 8. Well number 9. Permit number 10. APl number 50-- 11. Field/Pool 12. Present well condition summary Total depth: measured true vertical Effective depth: measured true vertical Casing Length Structural Conductor Surface Intermediate Production Liner Perforation depth: measured feet feet feet feet Plugs (measured) Junk (measured) Size Cemented Measured depth True vertical depth true vertical feet Tubing (size, grade, and measured depth) Packers and SSSV (type and measured depth) 13. Attachments Description summary of proposal __ Detailed operations program __ BOP sketch 14. Estimated date for commencing operation 16. If proposal was verbally approved Name of approver Date approved 15. Status of well classification as: Oil __ Gas __ Suspended __ Service 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed Title FOR COMMISSION USE ONLY Date Conditions of approval: Notify Commission so representative may witness Plug integrity __ BOP Test __ Location clearance ~ Mechanical Integrity Test __ Subsequent form required 10- IApproval No. Approved by order of the Commission Commissioner Date Form 10-403 Rev 06/15/88 S U B M IT I N TRI P L I CATE TO: THRU: FROM: MEMORANuUM Sta e of Alaska ALASKA OIL AND GAS CONSERVATION COMMISSION ~_---.~ ~ o_~ ' Jul 1 1992 _~~ ~ - ~- - DATE: Y , Commissioner ~ FILE NO: lg7192, doc Blair Wondzell vt~ P. I. Supervisor TELEPHONE NO: SUBJECT: LOUlS R ~rlmaldl Petr Inspector Monday, June 29. ~2 ~avelle~o ~e iocation (formerly known as Ca ~2) Location Inspection Mike Pelch #1 ~_~ Cannery Loop Mike Pelch #1 to observe the present condition of this well and the surrounding area. The well has a unibody tree with a ball type swab valve. From the top, a 3" pipe flow line emerges, makes a 90 degree sweep and extends approximately 10' horizontally from the tree. There are two gauges, one reading 4900 psi, the other 4700 psi. The end of this line terminates with a 3" unibolt flanged connection and bull plug w/needle valve and gauge. The wing valve is terminated with a blind flange. The master valves have had their handles removed and a lock block installed so there is no way to determine their state. The swab valve has no handle, but by the indicator on the stub shows it to be closed. I attempted to bleed the flow line through one of the needle valves and was unsuccessful, which indicates that either the master valves are open or leaking. I could not access the cellar to check the working pressure, but it is unlikely that it is higher than 5000 psi W.P. Also, I could not check casing pressure as there was no gauge visible. There is a medium size workover rig over the hole with the derrick standing, but no~scoped out. The outriggers are still blocked up with dunnage and appear to be stable. The rig, although weathered, appears to be intact. The surrounding location is in poor shape with assorted piles of scrap iron and drill pipe. Also in one corner of the pad there are pallets of mud additives that are, for the most part, still contained ~thouqh there is some spillage due to the bags decomposing; these consist of the following: iron oxide, mica, bicarbonate of-soda, barite, and FR-12(friction reducer). There are approximately ten short drums of lubricating grease that are leaking their contents onto the ground. 02-00lA (Rev. 6/89) 20/1 ]/MEMO1.PM3 The major concerns that occurred to me are that if the gauges on the flow line are accurate (4700 psi) there is a possible hazard in that a small leak could quickly escalate to a large escapement of gas. My recommendation would be to have a down hole tubing plug installed and a back pressure valve placed in the tubing hanger to relieve the surface pressure. Also, the derrick on the rig should be laid down. Ih ..Mum~ar¥, the location inspeCtion I made on Mike Pelch ~1 revealed some surface trash and a possible need for plugs in the well. ~ ~ _ WALTER J. HICKEL, GOVERNOR -.. ALASKA OIL AND GAS CONSERVATION COMMISSION June 26, 1992 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPY: (907) 276-7542 Joanna M Hollier Box 366 Kenai, AK 99611 Dear Ms. Hollier: Thank Zp_~pr~z0ur correspondence of June 12, 1992 regarding the Mike Pelch No. 1 ~w~ll. In response I will begin with a historical k'~s~3ml~. --~g~v~il was originally drilled and abandoned as the Cannery Loop Unit No. 2 by UNOCAL in 1981. The well was re-entered by Far North Oil and Gas in 1985 and renamed the Mike Pelch No. 1. A drilling unit for the well was established in June 1990 by Conservation Order No. 254 (CO 254). which set forth the conditions required to place the well on production. Foremost of these conditions is the requirement that the operator make an effort to voluntarily integrate the interests of all owners in the unit in order to protect their correlative rights. To our knowledge, this has not yet been done nor is the Commission aware of any owner unwilling to voluntarily integrate their interests. Voluntary efforts must be exhausted before the Commission can force integration of owner interests. When CO 254 was issued Alaskan Crude Corporation (ACC) was the operator of record and has since filed for bankruptcy. As yet a new operator for the well has not been approved. A designation of operator application has been received; approval will be considered as soon as the bond required by regulation has been posted. An appropriate bond insures that the well will be maintained, repaired and abandoned in accordance with Commission reguIations. It also serves to protect the landowner who has ultimate responsibility to plug and abandon the well should the operator default~ Accordingly, the Commission cannot approve well operations until proper operatorship has been established. The responsibility to satisfy Commission operator requirements rests with the lease owner and proposed operator. The nearest producing well to the Pelch well is the Cannery Loop Unit No. 4 (CLU-4), approximately 2.5 miles away. CLU-4 has produced 1.5 mmcf of gas from the Beluga formation and 18 mmcf from the Upper Tyonek formation. The Upper Tyonek formation is believed to be below the gas-water contact in the Pelch well and the nature of the Beluga Joanna M Hollier -2- June 26, 1992 -.. formation belies communication between the two wells in this horizon. Therefore the chances of gas reserves being drained from your property is remote. In addition, statewide rules are based on the assumption that a gas well is capable of draining 640 acres (see 20 AAC 35. 055). Enclosed are copies of the Commission statutes, regulations and CO 254 for your information. Should you have further questions, please contact us. David W. J~tor~ Chairman ~ Enclosures ALASKA OIL AND GAS CONSERVATION COMMISSION January 7, i992 WALTER J, HICKEL, GOVERNOR -. 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPY: (907) 278-7542 Robert C. Ely Ely & Havelock 608 W. Fourth Ave. Suite 21 Anchorage, Alaska 99501 Re: Alaskan Crude Operatorship Dear Mr. Ely: The commission has received your correspondence dated November 25, 1991. You requested that the designation of operator for several wells be transferred from Alaskan Crude Corporation (ACC) to James White, Inc. (whose name evidently has been changed to Intrepid Production Company). Commission regulations, specifically 20 AAC 25.020, provide that only the owner of the property may designate a new operator. Accordingly, for those wells located on property not owned by ACC, the commission must receive a designation of operator (Form 10-41I) from the owner. The new operator must then furnish a bond as required by 20 AAC 25.025. In addition, the commission has some specific concerns or requires additional information regarding the operation of each of the ACC wells. These are described below. ACC F-2 (ADL 318612), ACC F-3 (ADL 318613), and Burglin 33-1 (ADL 318614). The Alaska Department of Natural Resources, Division of Oil and Gas, has determined that these wells are located on leases which expired November 15, 1990. You contend (correspondence dated Aug. 29,1991) the leases are in a "state of suspension until their status is decided by the courts." Because the court has not stayed ADNR's decision, the commission must consider these leases expired. Commission regulations (20 AAC 25.101) require wells to be properly abandoned before lease expiration. An order to abandon these wells was directed toward Alaskan Crude Corporation on May 22, 1991. This order remains in effect for these wells, failure to comply will subject the responsible party to penalties as provided under AS 31.05.150. Katalla No. 1 A title search has revealed that ACC is not the owner of the lease on wlfich the well is located. The commission has been advised by the landowner that its lease agreement with ACC has been terminated. Commission regulations require the well to be plugged and abandoned. An order to abandon fids well was directed toward Alaskan Crude Corporation on May 22, 1991. This order remains in effect for the well, failure to comply will subject the responsible party to penalties as provided under AS 31.05.150. McCoy Prospect No. 1 When, and if, the purported owner submits a designation of operator for this well, the commission requests a copy of the current lease, or other documentation proving ownership of this property. Information requested in our May 22, 1991 letter to ACC is also required. Commission records indicate the owner of the Mike Pelch lease is James W. White et al., not ACC. Therefore, only James W. White et al. may effect the transfer of operatorship for this property, unless that ownership has changed. Form 10-411 must be revised to show the Robert C. Ely Re: Alaskan Crude OperatOrship Page 2 appropriate owner prior to the commission taking any action. Information requested in our May 22, 1991 letter to ACC is also required. Also, the commission is not clear as to what entity is being proposed to assume operatorship of these wells. All of your designation of operator forms refer to James White, Inc. yet your letter states that James White, Inc. has changed its name to Intrepid Production Company. In order to avoid future confusion, please submit your revised designation of operator forms denoting the proposed operator's current name. The commission will require the operator to furnish a new bond to ensure that each well is operated, maintained, repaired and abandoned in accordance with commission regulation. Because the commission has ordered several of the above referenced wells to be plugged and abandoned, it will not allow the ACC bond to indemnify any new operator. As an outgrowth of the ACC bankruptcy, the commission obtained estimates for plugging and abandoning each of the ACC wells. Based upon those estimates, the commission concludes that the following are reasonable costs (in thousands) for plugging and abandoning these wells. F-2 $25.0 F-3 $25.0 Burglin//33-1 $105.0 M. Pelch #1 $260.0 McCoy #1 $75.0 Katalla #1 $45.0 - $175.0 Total $535.0 - $660.0 Accordingly, the commission will require the new operator to post a bond or bonds sufficient to cover the estimated cost for plugging and abandoning each well. Under 20 AAC 25.025(b), the bond amount for a single well is a minimum of $100,000. Chairman CC. James Eason, Department of Natural Resources Jack Crichton, Crichton & Co. Clyde Hatter, Texas & Delaware Corp. Raymond Thompson, TMT Corp. Ralph Duerre, Burr, Pease, & Kurtz (Attorneys for Lawrence McCoy) James W. White ROBERT C. ELY JOHN E. HAVELOCK LAW OFFICES ELY & HAVELOCK 608 WEST FOURTH AVENUE, SUITE 21 ANCHORAGE, ALASKA 99501 July 11, 1991 Ms. Gwen Thompson Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, AK 99501-3192 Fax: 276-7542 TELEPHONE AREA C(')DE 907 276-1916 FACSIMILE (907) 258-9053 RECEIVED Alaska Oil & Gas Cons. Commission AnChora~le Dear Ms. Thompson' Thank you for faxing me a copy of my response to the Commissions request for a status report on the Mike Pelch No. 1 lease. As I told you on the phone, what I want is Mr. Pelch's reply. From the enclosed copy of his letter 'to me you can see that he states that he has informed the Commission that the lease between my client, James W. White, and Pelch is in full force and effect. I called him today and he says he sent it to the Commission. It is that letter from him to the commission that I wish to have a copy of. If he hasn't sent it, I would like you to so confirm to me. Thank you. Fun! .lCo~tect'$t~ d U L - 1 t99t Alaska .Oil & Gas Cons. Commission Anchorage ALASKA OIL AND GAS CONSERVATION COMMISSION WALTER J. HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 TELECOPY: (907) 276-7542 May 22, 1991 Michael J. Pelch 504 Pine Street Kenai, Alaska 99611 Re: Lease status of Mike'Peleh,No.1 Dear Mr. Pelch: As you are aware the Mike Pelch No. I well is located~ on property you own in Section 2, T5N, R11W, of the Seward Meridian. The commission respectfully requests a written statement regarding the current status of any oil and gas lease on the aforementioned property. This statement should include identification of the lessor and lessee, whether or not the lease ,is, still in effect and any other data pertinent to its status. Please send the statement' to my attention at the above address. Sincerely . Russell A' Douglass Commissioner cc. Robert E. Mintz Robert C. Ely ROBERT C. ELY JOHN E. HAVELOCK LAW OFFICES ELY & HAVELOCK 608 WEST FOURTH AVENUE, SUITE 21 ANCHORAGE, ALASKA 99501 TELEPHONE AREA CODE 907 276-1916 FACSIMILE (907) 258-9053 June 12, 1991 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive AnChorage, AK 99501-3192 Re' Lease status of Mike Pelch No. 1 Gentlemen: I am the attorney for James W. White and received a copy . of your May 22nd letter to Mike Pelch on the above subject. · This will confirm to the Commission that the Mike Pelch No. 1 lease is current. The lessor is Mike Pelch and the lessee is my client James W. White. If you have any questions please feel free to contact me. Yours very truly, o ney for James W White REEEIVi D JUN l ? 199l !IpREPA . , , i BV(orracitl Form 27) \ (1/87) FILE...�j4` Undeb 11*takS 1SanhrWrV Tmuo# OCT 1 District of aT.ARun OtEr US, BANKRU fr.� By In re Dens:"y JOHN DAVID ORYALL p+; Bankruptcy Case No. A90-005 6..; Debtor* Social Security No. Employer Tax ID. No.: DISCHARGE OF DEBTOR It appears that the person named above filed a petition commencing a case under title 11, United States Codeon June 28, 1990 that an order for relief was entered under chapter 7, and that no (dare) complaint objecting to the discharge of the debtor was filed within the time fixed by the court [or that a complaint objecting to discharge of the debtor was filed and, after due notice and hearing, was not sustained]. IT IS ORDERED THAT: 1. The above -named debtor is released from all dischargeable debts. 2. Any judgment heretofore or hereafter obtained in any court other than this court is null and void as a determination of the personal liability of the debtor with respect to any of the following: (a) debts dischargeable under 11 U.S.C. § 523; (b) unless heretofore or hereafter determined by order of this court to be nondischargeable, debts alleged to be excepted from the discharge under clauses (2), (4) and (6) of 11 U.S.C. § 523 (a); (c) debts determined by this court to be discharged under I U.S.C. § 523. 3. All creditors whose debts are discharged by this order and all creditors whose judgments are declared null and void by paragraph 2 above are enjoined from instituting or continuing any action or employ- ing any process or engaging in any act to collect such debts as personal liabilities of the above -named debtor. WAYNE W. WOLFE Clerk of the Court X= to Date 5 ;.951' *Set forth all names, including imde debtor within the last 6 years. (BankmFmy Rule 1005). A5' U.S, Bankruptcy Court District of Alaska 606 west 4th Ave. (Suite 138) Anchorage, AK 99601-2296 OFFICIAL BUSINESS PEHALTY FOR PRiI~T_~~ ALASKA OIL & SAS CONSERYATION COMMISSION 3001 PORCUPINE DR ANCHORAGE, A~ 99501- PItESORTEO FIRST-CLASS MAIL POSTAGE & FEES PAID Adm. Office of U.S. Courts Pentdt No. ~11 B271(OMcial Form 27 — Joint Debtors)( (km 10/g]) FILit- 0 In re Indeb Mates N ankruptrV Tmtrt SEP 2 5 1990 of ALASKA Br Depot NORTON KELLY GOFF, a/k/a Kelly Goff, a/k/a N. K. "Kelly" Goff, Bankruptcy Case No. A90-00575 and GLENDA FARRELL GOFF Debtor* SONnI Security No. IMPIMPPEN Employer Tax I.D. No.: DISCHARGE OF JOINT DEBTORS It appears that the persons named above have filed a petition commencing a joint case under title Il, United States Code on June 28. 1990 , that an order for relief was entered under chapter 7, and /date) that no complaint objecting to the discharge of the debtors was filed within the time fixed by the court [or that a complaint objecting to discharge of one or both of the debtors was filed and, after due notice and hearing, was not sustained]. IT IS ORDERED THAT: 1. The above -named debtors are released from all dischargeable debts. 0 2. Any judgment heretofore or hereafter obtained in any court other than this court is null and void as E a determination of the personal liability of the debtors with respect to any of the following: IZ('� (a) debts dischargeable under 11 U.S.C. § 523; 3m ffi (b) unless heretofore or hereafter determined by order of this court to be nondischargeable, debts y alleged to be excepted from the discharge under clauses (2), (4) and (6) of 11 U.S.C. § 523 (a); C (c) debts determined by this court to be discharged. 3. All creditors whose debts are discharged by this order and all creditors whose judgments are declared null and void by paragraph 2 above are enjoined from instituting or continuing any action or employing any process or engaging in any act to collect such debts as personal liabilities of the above -named debtor. WAYNE W. WOLFE Clerk of the Court 15/v By: Date 61 xlg`dw ctoEgx Chief Deputy *Set forth all names, including trade names, used by the debtor within the last 6years. (Bankmpiry, Rule M05). For joint debtors on forth both social security numbers. U.S. Bankruptcy Court District of Alaska 605 wist ~th ,Ave.. (SUite 138) AllchoTage, AK 99601.2296 ' OFFICIAL BUSINESS .,PENALTY FOR PRIVATE USE $300 90-00575 ALASKA OIL & GAS CONSERVATION COMMISSION 3001 PORCUPi'NE DR .~NCHORAGE, AK 99501- PRESORTED FIRST-CLASS MAIL POSTAGE & FEES PAID Adm, Office of U.S. Courts Permit No. G*II .A •United States Bankruptcy — U. S. BANKRUPTCY COURT, DISTRIC .. ALASKA ORDER AND N4 OF CHAPTER 7 BANKRUPTCY FILING, MEETING C _AUDITORS, AND FINING OF DATES (Individual or Joint Debtor No Asset Case) -- Name of Debtor ORYALL, DAVID JOHN Addressee: A. GENERAL INFORMATION Address of Debtor SO BON 112547 ANCHORAGE AK, W511 Date Filed Case Nurber Soc. Sec. Nos./74xilo Nwz-p- 06/2B/90 _ Address of the Clerk of the Bankruptcy Court U.S. BANKRUPTCY COURT 605 N. FOURTH AVE., STE. 138 ANCHORAGE AK 99501-22% _ .. Name sntl Address of Attorney for Debtor Nam and Address of Trustee REGINALD J. CHRISTIE GORDON ZERBETZ 3380 C STREET SUITE 101 PO BOX 210485_- ANCHORAGE AK 99503 ANCHORAGE AK 99521 907-333-6502'-- B. DATE, TIME AND LOCATION OF MEETING OF CREDITORS July 18, 1990, 11:40 a.m., Roan 250, OLD FEDERAL BLDG., 605 W. 4TH AVE., ANCHORAGE, AK 99501-2296 C. DISCHARGE OF DEBTS Last Day to File a Carylaint Objecting to the Discharge of the Debtor or Dischergesbi Lity of a Debt: September 17, 1990 D. BANKRUPTCY INFORMATION THERE APPEAR TO BE ND ASSETS AT THIS TIME FROM WHICH PAYMENT MAY BE MADE TO CREDITORS. DO HOT FILE A PROOF OF CLAIM UNTIL YOU RECEIVE NOTICE TO DO M. FILING OF A BANKRUPTCY CASE. A bankruptcy petition has been filed+in this court for the person or persons named above as the debtor, and an order for relief has been entered. You will not receive notice of all documents filed in this case. All documents Aioh are filed with the court, including lists of the debtor's property am debts, are available for inspection at the office of the Clark of the bankruptcy court. CREDITORS NAY NOT TAKE CERTAIN ACTIONS. Anyone to wham the debtor owes money or property is a creditor. Under the bankruptcy law, the debtor is granted certain protection against creditors. Commn examples of prohibited actions are contacting the debtor to demond repayment, taking action agai not the debtor to collect money owed to creditors or to take property of the debtor, except AS specifically permitted by the bankruptcy law, and starting or continuing foreclosure actions, repossessions, or wage deductions. If Unauthorized actions are taken by a creditor against a debtor, the court may punish that creditor. A creditor who is considering taking action against the debtor or the property of the debtor should review 11 U.S.C. 5362 and nay wish to seek legal advice. The staff of the clerk's office is not Permitted to give legal advice to anyone. MEETING OF CREDITORS. The debtor (both husband and wife in a joint case) shall appear at the meeting of creditors at the date and place set forth above in box 'B' for the purpose of being examined! Uder oath. ATTENDANCE BY CREDITORS AT THE MEETING IS WELCOMED, BUT NOT REWIRED. At the meeting the creditors may elect a trustee as Permitted by law, elect a committee of cred- itors, examine the debtor, and transact such other business as may properly case before the meeting. The meeting may be continued or adjourned from time to tine without further written notice to the creditors. LIQUIDATION OF THE DEBTOR'S PROPERTY. A trustee has been appointed in this case to collect the debtor's property, if arty, and turn it into money. At this time, however, it appears from the schedules of the debtor that there are no assets from which arty dividend can be paid to creditors. If at a later date it appears that there are assets from which a dividend may be paid, creditors will he notified and given an opportunity to file claims. EXEMPT PROPERTY. Under state and federal law, the debtor is permitted to keep certain money or property as exempt. if a creditor believes that an exemption of assay or property is not authorized by law, the creditor may file an objection. Any objection must be filed no Later than 30 days after the conclusion of the meeting of creditors. DISCHARGE OF DEBTS. The debtor is seeking a discharge of debts. A Discharge means that certain debts are made unenforceable. Creditors Whose claims against the debtor are discharged may never take action to collect the discharged debts. if a creditor De Lieves the debtor should not receive a discharge Under 11 U.S.O. 5= or a specific debt should not be discharged Under 11 U.S.C. 5523(c) for same valid reason specified in the bankruptcy Law, the creditor must take action to challenge the discharge. The lest day for challenging a discharge is set forth above in box 'C'. Creditors considering takingRECEIVE) such action/may wish to seek Legal advice. DO NOT FILE A PROOF OF CLAIM UNLESS YOU RECEIVE A COURT NOTICE TO DO SO �U� 0 ( 3990 For the Court: - '� "" „w,aw nsum; June 29 1990 WAYNE W. WOLFE AnehOrdie Date Clerk of the Bankruptcy Court United states Bankruptcy y ORDER AMD Mq OF CHAPTER 7 BANKRUPTCY U. S. OANKRUPTCY CWRT, DISTRIC RLASKA FILING, MEETINGOl -DITORS, AND FIXING OF DATES (I rdividlaL Or voint Debtor No Asset Case) A. GENERAL INFORMATION Name of Debtor Address of Debtor j GOFF, NORT011 KELLY 2440 E TUDOL RD #1098 aka Goff, N.K. 6Kelly" ANCHORAGE AK, 99507 I, GOFF, GLENDA FARRELL Date Filed Case Nhmber Sec. Sec. Nos./T4x ID -Has. 06/28/90 90-00575 Addressee: Redress of the Clerk of the Bankruptcy Court U.S. BANKRUPTCY COURT 605 W. FOURTH AVE., STE. 138- ANCHORAGE AK 99501-2296 lot Now and Address of Attorney for Debtor Name and Address of Trustee -- ' REGINALD J. CHRISTIE GORDON 2ERBET2 3380 C ST 9101 PO BOX 2IT ANCHORAGE AK 99503 ANCHORAGE AK 99521 907.333-6502 -- -' - S. DATE, TIME AND LOCATION OF MEETING OF CREDITORS July 18, 1990, 11:40 a.m., Roan 250, 00 FEDERAL BLDG., 605 Y. 47H AVE., ANCHORAGE, AK 99501-2296 C. DISCHARGE OF DEBTS Last Day to File a Complaint Objecting to the Discharge of the Debtor Or Dischargesbility of a Debt: September 17, IWO D. BANKRUPTCY INFORMATION THERE APPEAR TO BE NO ASSETS AT THIS TIME FROM WHICH PAYMENT MAY BE WADE TO CREDITORS. DO NOT FILE A PROOF OF CLAIM UNTIL YOU RECEIVE NOTICE TO DO SO. FILING OF A BANKRUPTCY CASE. A bankruptcy Petition has been filed in this court for the person or Persons named above as the debtor, antl an order for relief has been entered. You will not receive notice of all documents filed in this case. ALL documents which are filed with the court, including lists of the debtor's property and debts, are available for inspection at the office of the clerk of the bankruptcy court. CREDITORS MAY NOT TAKE CERTAIN ACTIONS. Anyone to Wan the debtor Owes money or property is a creditor. Under the bankruptcy Law, the debtor is grantee certain protection against creditors. Comma examples of prohibited actions are contacting the debtor to demand repayment, taking action against the debtor to cOLlect money owed to creditors or to take property of the debtor, except as specifically permitted by the bankruptcy law, and starting or continuing foreclosure actions, repossessions, or wage deductions. If unauthorized actions are taken by a creditor against a debtor, the court may pnish that creditor. A creditor who is considering taking action against the debtor or the property of the debtor should review 11 U.S.C. 5362 and may wish to seek legal advice. The staff Of the clerk's office is not Permitted to give legal advice to anyone. MEETING OF CREDITORS. The debtor (both husband and wife in a joint case) sha Ll appear at the meting of creditors at the date and place set forth above in box 18' for the Purpose of being examined under oath. ATTENDANCE BY CREDITORS AT THE MEETING IS WELCOMED, BUT NOT REWIRED. At the meeting the creditors may, elect a trustee as permitted by Law, elect a committee of cred- itors, examine the debtor, and transact such other business as may properly came before the meeting. The meeting may be continued or adjourned from time to time without further written miles to the creditors. LIQUIDATION OF THE DEBTOR'S PROPERTY. A trustee has been appointed in this case to collect the debtors property, if any, and turn it into coney. At this time, however, it appears fro the scheduLes Of the debtor that there are no assets from which any dividend can be paid to creditors. If at a Later date it appears that there are assets from which a dividend may be paid, creditors will be notified awl given an Opportunity to file claims. EXEMPT PROPERTY. Under state and federal law, the debtor is permitted to keep certain money Or property as exempt. If a creditor he Lieves that an exemption of money or property is not authorized by Law, the creditor nay file an objection. Any objection must he filed no later than 30 days after the conclusion of the meeting of creditors. DISCHARGE OF DEBTS. The debtor is seeking a discharge of debts. A discharge means that certain debts are made unenforceable. Creditors whose claims against the debtor are discharged may never take action to Collect the discharged debts. If a creditor believes the debtor should not receive a Discharge udder 11 U.S.C. 5727 or a specific debt should not be discharged Under 11 U.S.C. 5523(c) for sae valid reason specified in the bankruptcy Law, the creditor must take action to challenge the discharge. The last day for chat Lenging a discharge is set forth above in box 'CO. Creditors considering taking such action may wish to seek Legal advice. RECEIVE DO NOT FILE A PROOF OF CLAIM UNLESS YOU RECEIVE A COURT NOTICE TO DO SO -JIJL U" 7990 011 a Gas COILL COMIDNIon For the Court: June 29. IWO WAYNE W. WOLiE" AlallO= Date Clerk of the Bankruptcy Court United States Bankruptcy C -t ORDER AND NOT-IrF OF CHAPTER 7 BANKRUPTCY U. S. BANKRUPTCY COURT, DISTRIC ALASKA FILING, MEETING y _DITORS, AND FIXING OF S (Corporation \ tnership No Asset Case L. •v�A i A. GENERAL INFORMATION Name of Debtor Address of Debtor- �4: ALASKAN CRUDE CORPORATION 200 WEST 34TH #989 - - -- -- � - aka A.C.C., ANCHORAGE AK, 99503 Date Filed Case Number -/X.1G; 9Ll;i7.1 3 06/26/90 90-00567 r01_- Addressee: Address of the Clerk of the Bankruptcy Court Imo `�'' A aid U.S. BANKRUPTCY COURT �".�',. 605 W. FOURTH AVE., STE. 138 ANCHORAGE AK 99501-2296''%" T Name and Address of Attorney for Debtor Name and Address of Trustee REGINALD J. CHRISTIE GORDON ZERBET2 ,_.,_..........__' . - 3380 C STREET SUITE 101 PO BOX 210485 ANCHORAGE AK 99503 ANCHORAGE AK 99521 907-333-6502 IX1 Corporation I I Partnership B. DATE, TIME AND LOCATION OF MEETING OF CREDITORS July 18, 1990, 11:40 a.m., Room 250, OLD FEDERAL BLDG., 605 W. 4TH AVE., ANCHORAGE, AK 99501-2296 C. BANKRUPTCY INFORMATION THERE APPEAR TO BE NO ASSETS AT THIS TIME FROM WHICH PAYMENT MAY BE MADE TO CREDITORS- DO NOT FILE A PROOF OF CLAIM UNTIL YOU RECEIVE NOTICE TO DO SO. FILING OF A BANKRUPTCY CASE. A bankruptcy petition has been filed in this court for the entity named above as the debtor, and an order for relief has been entered. You wiLL not receive notice of aLL documents filed in this case. ALL documents which are filed with the court, including lists of the debtor's property and debts, are evaiLabLe for inspection at the office of the c Lerk of the bankruptcy court. - CREDITORS MAY NOT TAKE CERTAIN ACTIONS, Anyone to whom the debtor owes money or property is a creditor. Under the bankruptcy law, the debtor is granted certain protection against creditors. Common examples of prohibited actions are contacting the debtor to demand repayment, taking action against the debtor to collect money owed to creditors or to take property of the debtor, except as specifically permitted by the bankruptcy Law, and starting or continuing foreclosure actions or repossessions. If unauthorized actions are taken by a creditor against a debtor, the court may punish that creditor. A creditor who is con- sidering taking actions against the debtor or the property of the debtor should review 11 U.S.C. 5 362 and may wish to seek Legal advice. The staff of the clerk's office is not permitted to give legal advice to anyone. MEETING OF CREDITORS. The debtor's representative shall appear at the meeting of creditors at the date and place set forth above in box 'B' for the purpose of being examined under oath. A corporate debtor must appear by its president or other executive officer; a partnership debtor must appear by a general partner. ATTENDANCE BY CREDITORS AT THE MEETING IS WELCOMED, BUT NOT RE- QUIRED. At the meeting the creditors may elect a trustee as permitted by law, elect a committee of creditors, examine the debtor and transact such other business as may properly come before the meeting. The meeting may be continued or adjourned from time to time by notice at the meeting, without further written notice to the creditors. LIQUIDATION OF THE DEBTOR'S PROPERTY. A trustee has been appointed in this case to collect the debtor's property, if any, and turn it into money. At this time, however, it appears from the schedules of the debtor that there are no assets from which any dividend can be Daid to creditors. If at a later date it appears that there are assets from which a dividend may be paid, creditors will be notified and given an opportunity to file claims. RECEIVE JUN 2 81990 Alaka Oil & Gas Cons. Gomml55t a Anchorage DO NOT FILE A PROOF OF CLAIM UNLESS YOU RECEIVE A COURT NOTICE TO DO SO For the Court: June 27. 1990 WAYNE W. WOLFE Date Clerk of the Bankruptcy Court ,, r, JJ~JO~3tl4 · 1 i July 30, 1990 TELECOPY NO. (907) 276-7542 Dr. James A. White, P.E. 2628 Redwood St. Anchorage, Alaska 99508 Re: Conservation Order No. 254 Dear Dr. White: The Commission has received your July 20, 1990 letter requesting an appeal of Conservation Order No. 254 (CO254). Although your standing relative to this matter is not clear to the Commissiom, we will treat your arguments for appeal as a petition for a rehearing under AS 31.05.080(a). The merits of your arguments are discussed 'below. Your stated reasons for objecting to C0254 is that finding #7 is not correct and that the order does not protect the correlative rights of the mineral interest ow~ers located in the dri!limg unit established for the Mike Pelch #1 well. Further, you object to the wording changes made to CO210 by C0254, and to the terms of Rule 3 and Rule 4. Finding #7 states, in part, that the Mike Pelch #1 well is "...subject to an oil and gas lease to Far North Oil and Gas inc." In a previous letter to the Commission (June 8, 1990), you contend that the finding is incorrect because the lease is under the name of O'ames W. White andhas never 'been leased and/or assigned to Far North Oil and Gas"Inc. The Commission's records indicate that 'the lease is in fact under the name of James W. 'White et al (emPhasis added). Further, the records show that James W. ~ is the President and CEO of Far North Oil and Gas Inc., and 'that James W. White, acting for amd on behalf of Far North Oil and Gas, requested the Commission to grant a spacing exception to reenter the abandoned Cannery Loop ~/2 well, now known as Mike Pelch #1 well. The Co~nissio'n granted. the spacing exception (CO210) to Far North Oil and Gas, and issued a permit to drill (#86-7) addressed to James W. White, President and CEO, Far North Oil and Gas', Inc. Based upon the records, and 'the representations made by James W. White, our conclusion is that James W. White et al is Far North Oil and Gas, Inc. The Commission finds that C0254 does in fact protect the correla- tive rights of mineral interest owners within the Mike Pelch #1 well drilling unit. The order, and the resulting amendment to Dr James A July 30, 1990 Page 2 CO210, clearly provides that the well can~ot be produced unless all owners agree to integrate their interest voluntarily; or until the Commission issues an order pooling their interests, absent voluntary integramion 'by the owners; or, if the owners agree that limited production is necessary to gain information upon w'hich, to base an agreement to integrate their interests, the well can be produced f'or a period of six months pe¢~ding acquisi- tion o£ that i~'~formanion. I~' the o~ers agree to limited production for six months, C0254 requires the well to be shut-in only ii' the owners, armed with information gained ~rom six months o~ production, still cannon come to an agreement voluntarily integrating their interests (Rule 3). At that time, or at any such time that evidence can be presented that a voluntary agreement cannot be reached, the Commission may be petitioned under AS 31.05.100 to hold a hearing for the purpose of involuntarily integrating the interests of all concerned mineral owners. In that event, the operator would be required to submit cost information covering development and operation, of the unit so that the Con~ission may determine the actual and reasonable expenditures that may be chargeable to the unit per AS 31.05.100 (Rule 4). Evidence presented a.t the hearing held prior to the issuance of CO254 clearly shows that the door is still open ~or voluntary integration, and that the operator of record had not taken all reasonable steps to secure a voluntary agreement among the mineral ow~ers. Accordingly, the Comtnission concluded that its involvement u~der AS 31.05.100(c) was not yet appropria'ee. Nothing in the letter £ile~ on July 20, 1990 presents any credible evidence to the contrary· The general allegations contained in the letter are insufficient to contradict the · testimony presented at the hearing, including testimony by representatives of' Unocal and GiRl that they are willing to explore voluntary pooling. It is the decision oi the Commission that C0254 is correct in all matters, and that the correlative rights of' all mineral owners in the Mike Peich #1 well drilling unit are protected. Accordingly, the application for a rehearing is denied, Conservation Order No. 254 represents the final action of the Con~nission in this matter. David W. C onxnis s ior:e r L/ Lor,.nie' C. Smith C on~ni s s ioner B'Y O,~ER OF THE COt~[MISSION RECEIVED Alaska Oil & Oas Cons. C~mrn~ssi~n Anchom,cD Dr. Ja~nes A. White, P.E. 2628 Redwood St. Anchorage, Alaska 99508 July 20, 1990 Mr. C. V. Chatterton, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: Application to Appeal AOGCC Order No. 254 Dear Mr. Chatterton: In accord to Alaska statute §31.05.080, this letter is our application to the Alaska Oil and Gas Conservation Commission (AOGCC) requesting an appeal of AOGCC Order No. 254. Finding number seven is in error and the order does not protect the correlative rights of the mineral interest owners located within the 640.acre drilling unit established for the Mike Pelch %1 well. We do not object to the 640 acre drilling unit established for the Mike Pelch #1 well. Specifically, we are requestin9 that the Alaska Oil and Gas Conservation Commission abide by the original terms and conditions of its Order No. 210 dated May 31, 1985. The Mike Pelch #1 well was originally re-entered and developed under the original terms of AOGCC Order No. 210. AOGCC Order No. 210 clearly.stated that the AOGCC ~h~ issue an involuntary order pooling and integrating the interest of the parties, if all the parties cannot come to a voluntary agreement. Instead of issuing an involuntary order pooling and integrating the interests of all the parties, AOGCC Order No. 254 amended the terms of Order No. 210 to in effect say that if all the parties cannot come to a voluntary agreement, the well shall be shut-in and not produced. Order No. 254 does not protect the correlative rights of the mineral owners that are entitled to receive their share of gas from the Mike Pelch #1 well. · Unocal and CIRI have not voluntarily agreed to any development work on the Mike Pelch #1 well since they plugged and abandoned the well in 1982. · Unocal and CIRI have not contributed any money or expended any effort toward the reworking of the Mike Pelch #1 Well. · Unocal and CIRI have not put forth any proposals of their own for the completion of this well. · Unocal and CIRI have stated that the development of the Mike Pelch #1 well is not a high priority at their offices. Mr. C.V. Chatter[~n July 20, 1990 Page 2 Unocal will not agree or disagree with any proposal that has been submitted to them and they have not proposed any alternatives to the proposals that have been submitted to them. Unocal and CIRI have no time limit to come to-a voluntary agreement. The six month time period following the "date of initial production" stipulated by the AOGCC to come to a voluntary agreement, is an arbitrary, capricious and meaningless. "Initial production" cannot occur until there is an agreement between the parties. Since there can never be any production without an agreement, and the six month time period does not begin until "the date of initial production", the time period specified by Order No. 254 is effectively meaningless. It is obvious that a timely voluntary agreement pooling and integrating the interests of all the parties is not going to occur in time to bring the Mike Pelch #1 well on production this year. Therefore, we have no alternative but to object to the wording changes made to Order No. 210 as found on pages 4 and 5 of Order No. 254, and also to object to the terms of the order stated in paragraphs three and four for the reasons stated above. Sinc~ly, . · CC: Peninsula'PiPeline Company Alaskan Crude Corporation Trustee Far North 0il & Gas, Inc. Dr. James A. White, P.E. 2628 Redwood St. Anchorage, Alaska 99508 July 16, 1990 Mr. C. V. Chatterton, Chairman Alaska 0il and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: Confirmation of Time Extension for Appealing AOGCC Order No. 254 Dear Mr. Chatterton: This letter confirms the conversation you had earlier today with James W. White. He asked for, and received from the commission, an additional ten day time extension, for a total of thirty days beyond the twenty day time period given to file an appeal to Conservation Order No. 254. Once again, we appreciate the commission granting the ten day extension to allow time for the parties to try to .come to an agreement. Sincg[ely, RECEIVED JUL 1 6 1990 Alaska Oil & Gas Cons. (;ommission Anchorage ' July 6, 1990 Mr. C. V. Chatterton, Chairman Alaska 0il and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: Confirmation of Time Extension for Appealing AOGCC Order No. 254 Dear Mr. Chatterton: Dr. James A. White, P.E. 2628 Redwood St. Anchorage, Alaska 99508 _1 This letter simply confirms our conversation earlier today. I asked for, and received from the commission, an additional ten day time extension beyond the twenty day time period given to file an appeal to Conservation Order No. 254. Our negotiations with the major parties indicates an agreement can be reached, and therefore we feel an appeal may not be necessary. Once again, we appreciate the commission granting the ten day extension to allow time for the parties to try to come to an agreement. Sing~rely, /James A. White, P.E. ~ cc: Peninsula Pipeline Company Alaskan Crude Corporation RECEIVED JUL - G 1990 Alaska Oil & Gas Cons, Anci'iom~l~ June 27. 1990 Mr. C. V. Chatterton, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 C O ;',,~, ?,,4 C C M M -46 Dr. James k. White, P-'~.-=~=~ ~,_-N~'~- Anchorage, Alaska 99508,'~-Q-~'~;, ~-~.~'~G i..%'-n -, ,.. ,.. ~_~_ i PlLE _. Re: Confirmation of Time Extension for Appealing AOGCC Order No. 254 Dear Mr. Chatterton: This letter simply confirms the conversation and agreement made earlier today between James W. white and the Alaska Oil and Gas Conservation Commission. James W. White asked for, and received from the commission, a ten day time extension beyond the twenty day time period given to file an appeal to Conservation Order NO. 254. Our negotiations with the major parties indicates an agreement can'be reached, and therefore we feel an appeal may not be necessary. We appreciate the commission granting the ten day extension to allow time for the parties to try to come to an agreement. Sincerely, James A. White P E cc: Peninsula Pipeline Company Alaskan Crude Corporation Dr. James A. White, P.E. 820 Harbor Circle Anchorage, Alaska 99515 June 8, 1990 State of Alaska Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Re: Errors Within AOGCC Conservation Order No. 254 Gentlemen: Preliminary review of your Conservation Order No. 254 revealed two ~.significant errors that should be corrected. These errors are: Error No. 1 Finding No. 7 is in obvious error and is not correct. The Pelch fee land is not now, nor has it ever been leased and/or assigned to Far North Oil & Gas, Inc. The Pelch fee land oil and gas rights are leased to James W, White and/or to whomever else he may have assigned this lease to. A copy of the oil and gas lease between Mike Pelch and James W. White, dated July 6, 1983, and the subsequent oil and gas lease extensions between Mike Pelch and James w. White dated May 20, 1985 and December 11, 1985, are included with this letter. Therefore, Finding No. 7 should be corrected to reflect the aforementioned error. ~rror No. 2 Far North Oil & Gas, Inc. is not the designated operator, therefore, it ~ have.the authority to perform any work on the Pelch well. The designated operator, whomever that may be, is the only entity authorized to perform any work on that well. It would appear that item No. 2 of Conservation Order No. 254 should be amended to reflect the aforementioned error. Attachment: Copy of Oil & Gas Lease Between Mike Pelch and James W. White cc: Alaskan Crude Corporation RE( EIVED JUN - 8 1990 Alasl .011 .& Gas Cons. Commission ~,nchomge EXTENSION OF OIL AND GAS LEASE .. THIS AGREEMENT [EXTENSION] dated this llth day of December 1985, by and between MI.CH_~EL JOHN PEACH as Lessor and JA/~ES W. WHITE as Leasee refers to that certain "0tl and Gas Lease" dated the 6th of July, 1983 which called ~for a lease term of two (2) years, expiring on the 6th day of July 1985 and additionally to that certain "Extension of 0il and Gas Lease" dated the 20th day of May, 1985 which extension served Go extend the terms of the original lease to the let day of January 1986. THEREFORE BY MUTUAL AGREEMENT (consideration having been made) the term of this lease is hereby extended to the 6th day of July, 1986. All other terms and conditions of the "Lease" are to remain in full force and ~con~isting o} 17 numbered paragraphs and 10 numbered paragraphs of addendums). IN WITNESS WHEREOF, MICI-~AEL JOHN PEACH has hereunto set his hand and seal this day of December, 1985 and JAP[ES W. WHITE has set his hand and seal this llth day of D~ember, 1985. // H~CI-~EE JOHN PE.LCH I ' STATE OF O~GON ss. Coum'YOFt E BEFORE ME, the undersigned, a Notary Public within and fbr said county and state, on the ~'9 day of December, 1985, personally appeared MICHAEL J0~ PEACH to me personally known to be the identical person who executed the within and foregoing act and deed for the uses and purposes therein set forth. IN WITNESS ~EOF, I have hereunto set my;hand and official seal the day and year last. above written. ~otary ~ubli6 My Comission Expires: _ 1~'~'~ STATE OF ALAS~J% THIRD JUDICIAL DISTRICT SS, BEFO~ ~, the undersigned, a Notary Public within and for the State 'of Alaska, on the llth day of December, 1985, personally appeared J~ES W. ~ITE to ~ personally kno~ to be the identical person who executed the within and foregoing instr~ent'and 'acknow- ledged that he executed the s~e as his free and'vol~tary act and:deed for the uses and purposes therein set forth .... IN WITNESS ~EREOF, I have here~to set my hand and/ v/}~ftcial/s~al thg day,and year last above written... ., . 4' EXTENSION OF OIL AND GAS LEASE THIS AGREEMENT dated 20th day of May, 1985, by and between MICHAEL JOHN PELCH as Lessor and JAMES W. WHITE et.al, as Leasee refers to that certain "Oil and Gas Lease" dated the 6th of July, 1983 which called for a lease term of two (2) years, expiring on the 6th day of July 1985. THEREFORE BY MUTUAL AGREEMENT the term of this lease is hereby extended to the 1st day of January 1986 and the expiration date shall now be January 1, 1986. All other terms and conditions of the "Lease" are to remain in full force and effect (consisting of 17 number paragraphs and 10 paragraphs of addendums). IN WITNESS WHEREOF Michael John Pelch has herunto set his hand and seal this .~,_.x~ day of May, 1985 and James W. White has set his hand and seal this 20th day of May, 1985. Michael John Pel~ J~s W. White Before me, the undersigned, a Notary Public within and for said county and state, on the ~,~ day of May, 1985, personally appeared MICHAEL JOHN PELCH to me personally known to be the identical person who executed the within and foregoing instrument and acknowledged to me that he executed the same as his free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year last above written. ~../.. . ~ ,, Notary Public STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) Before me, the undersigned, a Nctary Public within and for the State of Alaska, on the 20th day of May, 1985, personally appeared JAMES W. WHITE to me personally known to be the identical person who executed the within and foregoing instrument and acknowledged to me that he executed the same as his free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day 'and year last above written. Notary Public My Commission Expires: ,, ~qV3S ~ I~YAS) 'Sa~Qdand III JOJ ~3aJja pul a~JoJ ';. ~:' · ..... '/' ' a~~,~~g~:.~~i}~.~~=~ ~.~ ' ' 'J3punaJaq JulnJ321 ~:lg~OJ ~u~ 'oat( ., r -pi 'litl&ip '3alu~J3 '~Ju31~il 13aJIpul Jo ]3111p .C~la uo ~t~u:q ~ [[~q~ d~sJ3u~o jo J:uc~3 Jo ~3~1ou pu~ 11tl~nJOp al~lJdO~dl pt~ ]o ;3:,3~ a~;~q J.~U~ ~nl ~ul JoJ t~lltl.(OJ Jo Iltlu~J ~i ui Jo pu~I ~1 Ul dlq~J3U~o jo a~3 ou ~nq 'lU~!ss1 ~1 '!]oss]33fll 't~ol~Jls~ut~p. '~oln33x~ lul.(ud lelUaJ ]uln~a lxau lq1 .(q pa3uammoa aq Ii~qs I[a.~ u ;~ 3u;i[l~p 3ql JoJ ~uotlcJadO pap~,~o~d 'al~Ulm~al 1ou Ileql areal s~ql 'paz::Tun ' ~ ~ ~ Jo ~up' ~ 'lq1 a~olaq Ja uo puli pl~s uo pa~uammoa lOU aJe sua ~o Uo ~oi ila-~ u ;o 3u~:i!~P lq1 · 'asuadxa pul asTJ alOS I.zossat lq1 1M aq ol svl jo ash pul suoT13auuoa O~ ' . ~ ~?- - ... ~ .-~'~ ~- ' · ~ - ,,.,.,~..,,,..,..~ .,....,.. ,.. ,,.....,o..~, ,. ,.. "",~ r~F~ ~a~'~ '"' '~' ,o ..,,...,,..o.., ,.. ~o, .,..,, ,~ -,,~.~,.~ ', · .o..,,.,,.,.,,..,...,~ ~~ )o~, .. :, _ STX~:r . ~ '~ " -', , ' ~' ss. ACKNOWI.EI)GMENT I"OR,_ ,VIDUAL (Kans.,Okla.,~ndColo.) day of 19~_, pcr~o,:,lly appea, c.a ~ ~ce~ ff~0 ~ to me personally known to l,e the identical p~/'son__who executed the within and f~;'t, going instrument apd'ackno~'lt, dged t, me that //~ execuicd the same as ~ free and v,,lunt,ry act and deed for the uses and.p~rpo~[~)~fu;'th. ' 1N-WITN ESS WIIEREOF, I have hercunlo set' m~' hand .md' official seal the day. and year last alive.. ,~' ~-~t, ,.~' . My ~ommission expire~ ~=,,,~,' 14 l~ ~ ~ ~)~~ ~/~ ~=':" ' ' '~ ' = ~ ~ ~~abfie."? ' f') a . '...u,, ..', to me personally known to be the identical, person__xxho executed the wtthm and fore§otng mstrum~lL~,X~nd ack.rtqwledged to me · . that ~ executed the same as ~J ~ free and voluntary act and deed for the use~ ~a PW ~es.therein se~ ~rth. IN WITNESS WHEREOF, I h~'~.~u~to set my hand and official seal the day and year~t~ ~litt~;. mmt~l~ · ~ ~. '~ · STATE OF COUNTY OF. On this day of. in and for the county and state aforesaid, personally appeared ~', ·" , to me personally known to be the ~dent~cal person who s~gned the name of the maker thereof to the wiihin and foregoing . instrument as its President and ackflowledged to me that . executed the same as free and voluntary act and deed, and as the free and voluntary act and deed of said corporation; for the uses and purposes therein set forth. ~. t. ~' ,~-~. · ,~ ¢ · ~' , 'e'er,. ' ..C ' ,~ .' . ~ 'c'~?· ' ACKNO;VLEDGMENT FOR ~ iRATION .., ' , ./%,~..... :.. , A. D., 19 , before me, the ~fsigned, a ~0~ry Public Given under my hand and seal the day and year last above written. My commission expires Notary Public. Z td NOTE: When signature by mark in Kan.-;as, said'n{~.u:k to be witnessed by at-4ea-~t one person and also acknowledged. For acknowledgment by mark, est. regular Kan.~;,.~ acknowledgment. ., STATE OF. ~ ;"' sa. ACKNOWLEDG31ENT FOIl INDIVIDUAL (Kans., Okla., and 'Q~lo.) COUNTY OF. Before me, the unders!gned, a Notary Public, within and for said county and state, on this day of. . 19 ., pt. rsonally appeart, d and to me personally known to be the identical person__who execute,I the within and foregoing instrument, and acknowledged tO ;ne that~ .executed the same as free anti voluntary act and deed for the uses and purposes therein ~et forth. IN WITNESS WlIEREOF, I have hereunto set my hand and official seal the tlay and year last above written. commission expires~ Notary Public. · GAS LEASE ^DDEND~,I$ [FOOfl FILMING QUALITY7 _J Lessee agrees to drill at mutually agreed locations, however it is agreed that the Lessee sbal bare the right to drill on each subsec- tion allotled per well per acre and shall not be required to drill slant . and or dlrectionaly to reach the geological location selected by the ]_.ess·e. · Provided the well is a producer and there is sufficient gas to run the production units (ir·al·rs, pumps, ect.) Lessor will have the rigbt,'at no cost at the well head, to enough 9as for his/her non-comercial use to beat bis/her home, barn and greenhouse. · Gathering facilities (tanks, treators,hydralors,etc.) if required v:ill be placed at mutually agreed locations. 4. Lessee shall pa), e. ll taxes levied on its ir. proves·mis end personal pro- ~ petty'mad taxes levied on its oil and 9as which Lessee stoked on the leased land. l.essor shall pay his share of any .tax (windfall profit tax , sev- erance %ax and or any ~tber tm×) on bis roy?ltv production sh~re at well head ~nd Lessee' will 'make such pays·fits ~o~'tHe Lessor gad deduct . . same from the Lessor royalty pa),.~ents. Lessee may at any time surrender or cancel this lease in whole only during the tv:o year lease period of tb~'~ lecse, furthur defer~ent of the lease ~vi]l be negotiated between Lesse ond Lessor· I.esmee will notify Lessor by ~il or delivery of canceled s~id lease. 6. Lessee agrees to inde::nify and save harmless Lessor from gad against ~ny and all claims, suits, da:~.age$, cost, losses and expenses arising out or growing out of ~njur~es or death of lo~e of or dam~Oes lo properly ~n r. ny manner directly or indirectly rcsulling from or caused by operatSons of the Lessee on She 2eased premises or adjacent iberelo, or lb· existence of oil wells, 9as we]Is, derricks, pipe]i.ncs or ia~ks or.~ppurienances there of, used by the Lessee on il~e lease pre:t, ises or adjcent thereto, unless such damages br ~njury is caused by the gross negligence or ~illful mis- conduct of Lessor or Lessor~.~ agents or e:np]oyces. · Upon the termination of this lease in may manner, or if any well is :. abandoned, the Lessee ~grees to relevel the surface of the land involved and fill sump holes mad excavations made or c~used to be made by the Lessee. Lessee olso agrees to remove all cement blocks, 'foundations, buildings, pipelines, tanks,roads and or any tblng else that the Lessee placed or cmused %o be placed on the leased property amd ~m~'e ih· ground b~ck to its original contour mt .Lessor~s request 8. Lessor shall further receive a I2~I working interest 30 days after the d~te that all drilling and development cost have been repaid to the investors by the existlng's wells production or 5 years after the date the well is put on production, which ever comes first. 9. This lease agreement becomes null and void if Union, Maratho-. add or any other lease is in effect. I0. Lessee agrees ito indemnify and save harnless Lessor from and ~9ainst any and all claims , siits , damages,co~t,'lSsses and expensesle~ ing out of original leases; Union, Marathon and/or etc. SEPZ6 3 PI4'86 ,,./ REQUESTED.?~ Unocal Oil & Gas £ ~n Unocal Corporation EO. Box 190247 Anchorage, Alaska 99519-0247 Telephone (907) 276-7600 UNOCAL Craig K. White District Exploration Geologist- Alaska District August 1, 1989 Nr. Lonnie C. Smith Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Hr. Smith: As requested by the A.O.G.C.C. through A.O.G.A., we 'are providing replacement copies of reproducible (sepia) logs for Unocal-operated wells, as follows' Canoe Bay Unit #1 (Pure Oil Co.) Cannery Loop Unit #1 Cannery Loop Unit #2 Cannery Loop Unit #3 Clam Gulch Unit #1 Grayling 1-A Kasilof Unit #1 Kenai Unit 41-18 Knik Arm #1 Knik Arm St. #1 Kustatan #1 Kustatan #lA Ninilchik #1 Pittman #1 Pretty Creek Unit #2 (Chevron) Trading Bay Unit West Trading Bay St. #1 5" E-log 2" E-log 5" BHC, 5" Density~-E ~oo 5" BHC ~ ~ ~_o~-r 5".Density, 2" DIL 2" E-log 2" E-log Mudlog 2" E-log 2" E-log 2" E-log 2" E-log 2" Sonic ,-- ~ L:,e~ 5" Microlog 5" ~L, 5" Neutron Ct. Ra~e GR-Neutron (tie in), ~T log 2" & 5" Sonic, 5" Density 2" & 5" BHC, 2" & 5" E-log Please return one copy of this letter in acknowledgement of your receipt of this data. BWS'da 2755E i'"': : TM ~ '. _-q :-~-' STATE OF ALASKA ALA'~)~.~_~.~L AND GAS CONSERVATION Cq,., ,;'SSION ' WELL cOMPLETiON ~R RECOMP~~ION ~~OR~' AND LOG ---~,~ ~ ~ ':: '"' ..; ;~. ~J~"~'~ ~.: ~:: : : ': ~ ~' ~ ~ C;assifica'i~n of Serv~e Well 1. Statusof W~II.;;;~ ~:'~ ............. :, ~ ~, . :, : .: ¢~ :~'~ . . OIL Q GAS~' SUSPENDED Q ABANDONED ~/ :~:sERv~c~'{' ' 2. Name of Operator 3. Address .... 4. Location of well at surface '// At To¢ Producing Interval At Total Depth 7. Permit Number'' 8. APl Number 9. Unit or Lea~e Name 10. Well Number ?/,<-:- /~=~ ~ / 11. Field and Pool 5 Elevat;on in f;, (indicate KB, DF, etc.) 16. Lease Designation and Serial No. ~-~,,/¢/6//c/c"-/~, ~' X ~9 O? ,2. B,,, ~ ~¢¢¢~ ,3. o.,. T.D..,~h. 1,4. Date Oo~p., S~. or Cban,. I". w.. o.,,,.,, of,¢ore 116. N~. of Completions 6-/~- ~ y~-~-~ V~/~J'~ ~-~ ¢~'+f~/~1 ~,,,~SL I / 22. Ty~ El~tr~ o~ Other Log~ Run 23. CASING, LINER AND CEMENTING RECORD CASING SIZE; WT. PER FT. 7" / ? GRADE TOP 24. Perforations open to Production (MD+TVD of Top and interval, size and number} 72:¥- ?.~ 7¢ ??oo- ?~:7/0 I SETTING DEPTH MD [ BOTTOM HOLESI~E! CEMENTING RECORD ~otmm and ~5. TUBING RECORD AMOUNT PULLED SIZE DEPTH SET (MD) PACKER SET (MD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) I AMOUNT & KIND OF MATERIAL USED / 27. PRODUCTION TEST Date First Production [ Method of Operation IFIowing, gas lift, etc.) Date of Test Hours Tested" [PRODUCTION FOR [OIL~-BBL GAS-MCF ?- ?- :--t~ X' ITESTPER,OD e [ F~owTubin. Casin. Pre,sure iC^LCULATED ~IO~L-BBL GAS-MCF Pre,. 124-HOUR RATE '~ I 28. CORE DATA .r WATER-BBL [CHOKESIZE ]GAS-OILRATIO WATER-BBL lOlL GRAVITY-APl (corr) I Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water. Submit core chips. t¢oreZ 7-~ ~ z~,~s ~,,~,,/ o~ ~ ~:c >~-~'~2 ~c.'~ ~,'~'~ Form 10A07 Rev. 7-1-80 CONTINUED ON REVERSE SIDE - 49 - Submit in duplicate ' - ' ;~:~ ~'~:;~ M~DEP~H - : T~UEV~T DEPTH GO~ ":':.:. .... ..... , .. . '......., .. '-~ ~=~--.~ .... =~:~--~--.' .-:::~ .;--:: ~:;: :.::~ ...... : ..... '.'. '~-__~}~::~:.:;¢~;~-':~ "::~_ -...' - ~: -~'~'7":~' :~---~'~-~' ~ ' :~ '_ . _~ ' .-.'~.~' .~~ : ............... . .... ;.: :'. ~,~ ........ ._ . ~"' ~ :: - . :~ : ~ -. .~:.,~ : : . ~ '- ~ . . . ",.. . . ,. . ..'-... , ....... -. . ~ . . ~. . .. . _.. , ' ~ ' =i'?. '., . . . . . . ~. LIST O~ A~AOHMENT8 . . .' . . - . iNSTRUCTiONs General: This form is designed for submitting a Complete and correct well completion report and log on ali types of lands and leaSes in Alaska. Item 1' Classification of Service Wells: Gas injection, water injection, steam injection, air injection, salt water disposal, water sUpply for injection, observati°rl,.[njection for in-situ combustion. Item 5: Indicate which elevation is used as reference (where not otherwise shown) for depth measurements given' inother spaces on this form and in any attachments. Item-16 and 24: if this well is completed for separate production .from more than one interval (multiple completiOn), so state in item 16, and in item 24 show the producing intervals for only the interval reported in item 27. submit a separate form for each additional interval to be separately produced, showing the data. pertinent to such interval. Item 21: IndiCate whether from ground level (G L) or other elevation (DF, KB, etc.). Item 23: AttaChed supplemental reCords for this well should show the details of any multiple stage cement- ing and the location of the cementing tool. Item 27: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water In- jection, Gas Injection, Shut-in, Other-explain. Item 28: If no cores taken, indicate "none". Form 10-407 - 50 - CONSERVATION COMMISSION Kenai, Alaska ~S¢ll Re: Lease status of Mike Pelch No.1 Dear Mr. Pelch: As you are aware the Mike Pelch No. 1 well is located on property you own in Section 2, T5N, RllW, of the Seward Meridian. The commission respectfully requests a written statement regarding the current status of any oil and gas lease on the aforementioned property. This statement should include identification of the lessor and lessee, whether or not the lease is still in effect and any other data pertinent to its status. Please send the statement to my attention at the above address. Sincerely Russell A. Douglass Commissioner cc. Robert E. Mintz Robert C. Ely ALASKA OIL AND GAS CONSERVATION COMMISSION .. WALTER J, HICKEL, GOVERNOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501.3192 PHONE: (907) 279-1433 TELECOPY: (907) 2767542 May' 22, 1991 Alaskan Crude Corporation Attn: Kelly Goff P. O. Box 11-1187 Anchorage, Alaska 99511 Dear Mr. Goff: As an oil and gas well operator in the State of Alaska, Alaskan Crude Corporation (ACC) has assumed certain responsibilities. These responsibilities include compliance with the Alaska Oil and Gas Conservation Act (AS 31.05) and Title 20 Chapter 25 of the Alaska Administrative Code.. All of the wells operated by ACC in the state are in violation of the aforementioned statutes and regulations. McCoy Prospect No. 1 Section 6, TIS, R13W, SM A request for information dated October 30, 1987 (copy included) was sent to ACC. No response was received. The information remains delinquent. The Commission requests that it be submitted immediately. Mike Pelch No. 1 Section 2, T5N, RllW, SM This is currently a shut in gas well and has been idle since the second quarter of 1987 when the well was reperforated without Commission approval. The Commission requests 'an updated status report showing current condition (e.g. wellhead pressures) and a statement of what plans are scheduled for the well in the next 12 months. Burglin 33-1 Section 33, T10N, R14E, UM Commission records classify this as a suspended well. The lease on which the well is located has expired. Commission regulations (20 AAC 25.105) require wells to be abandoned prior to lease expiration. ACC is in direct violation of state regulations and must immediately take steps to properly abandon this well and is subject to penalties provided for under AS 31.05. 150. Kelly Goff Alaskan Crude Corporation -2- May 22, 1991 ACC F-2 Section 26, T10N, R13E, UM This well is also located on an expired lease and is subject to the same requirements as stated above for the Burglin 33-1. '~-~', ACC F-3 Section 29, T10N, R14E, UM This well is also located on an expired lease and is subject to the same requirements as stated above for the BurgHn 33-1. Katalla No. 1 Section 36, T19S, R5E, Copper River Meridian This well has been shut down since October, 1986. The twelve month period for an operation shutdown has expired and action must be taken to abandon the well per 20 AAC 25.105. We anticipate a prompt response. ~i~a~ly, Chairman Alaska Oil and Gas Conservation Commission Telecopy ~o.. (907) 276 7542 November 30, 1990 Thomas W McKay- ATO 1438 Drlg Engineer ARCO Alaska, Inc P 0 Box 100360 Anchorage, AK 99510-0360 Re z Abandonment costs for specific wells Dear Mr McKayt As recently discussed on the phone, we would appreciate ARCO's help in developing costs to abandon some specific wells. These costs would include downhole work, cutting off the casing at least three feet below rig grade level, and installing abandon- ment markers. Costs are not to include location cleanup or filling of pits. - - The wells for which we would like ARCO's estimated abandonment costs are the Alaskan Crude wells: F-2 Sec 26 T~0N R13E UM F-3 See 29 T10N R14E Burglin 33-1 See 33 T10N R14E.UM Mike Pelch ~1 Sec 2 T 5N RllW SM McCoy Prospect Sec 6 TlS R13W SM Katella KS-1 See 36 T19S R 5E Tom, I appreciate ARCO's help in obtaining this information. Sincerely, Blair E Wondz~T1, P.E. Sr Petroleum Engineer jo/A.BEW.168 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1. Type of Request: Abandon [] Suspend [] Operation Shutdown r'] Re-enter suspended well [] Alter casing [3 Time extension [3 Change approved prOgram I-i Plugging [] Stimulate ~ Pull tubing [] Amend order [] Perforate [] Other~5~ 2. Name of Operator Alaskan Crude Corporation AddreSs 9525 King St/P O Box lll187Anchorage, 4. Location of well at surface 863, W & 1481' S of NE COrner Sec. At top of Productive interval AK 2, T-5-N, R-11W" 5. Datum elevation (DF or KB) K.B. 80.63 M.S.L. 6. Unit or Property name Mike Pelch #1 7. Well number Same as above 8. Permit number 86-7 9. APl number 50--133-20333 Same Ateffectivedepth Same Attotaldepth Same 10. Peol C~nnery Loop feet 11. Present well condition summary Total depth: measured l0,50 0 ' true vertical Same Effective depth: measured 10,100 ' . true vertical Same feet feet feet feet Plugs (measured) 10,10 0 ' Junk (measured) - 10,240' Casing Structural Length Size Cemented Measured depth True Vertical depth Conductor Surface 2612 ' 133 / 8" Intermediate 8 10 0 ' 9 5 / 8" Surfaced 2612' 7100'+/ 8100' Production Liner 7691'-10,525-' ,1 Perforation depth: measured 9254 '-9274 ' 9300 '-9310' Referf 9300'-9310' true vertical Same Tubing (size, grade and measured dePth) 2 7/8" EVE 6.5# Set @ 9000' Packers and)GG~xXtype and meaSured depth) Retreavable @ Plus 9000 ' Same Same 12.Attachments- DescriPtionsummaryofproposal~ Detailedoperationsprogram D BOPsketch [] Form 10-403 Rew - 7-1-80 13. Estimateddateforcommencingoperation On A.O.A.G.C.C. Approval / Est. 5-12-88 Plus 14. If proposal waS verbally approVed ,~...~ ......... Date approved 15. I he~)~at ~~1~ is t[,d~and correct to the best of my knowledge Signed~//',~. ,,- _~'9~ Title Chairman Conditions of approval Approved by Date 5-11-88 Commission Use Only Notify commission So representative may witness I Approval No. [] Plug integrity [] BOP Test r-I Location clearance~ .,,pnroved Copy 'Returned ORIGINAL SIGNED by order of ~Y C. V. CHA-I-i'ERTON Commissioner the commission Date ,,~---/,-~ Form 10-403 Rev 124-85 Submit in triplicate 7072-2 Quad Blowout Preventer · Specifically designed for coil tubing operations. · Materials to NACE MR-01-75 specifications. · Rams are 17-4 stainless for long life. · Replaceable slip inserts. · Hydraulically actuated rams with non-rising manual locks and ram position indicators. · Vented to prevent well fluids from entering hydraulics. · Integral equalizing valves--no exterior piping. · Solid block body with no joints or welds. · 5,000 or 10,000 psi working pressure. ° Also available as single, dual, triple or more, with spacing and side flanges as required. · Alloy steel with coating or stainless body. · Flanged or various union connections. · Adapter flanges/union available to fit all well heads. Tubing Stripper/ Packer · Effective packoff on coil tubing'whether stripping into or out of hole. · 5,000 and 10,000 psi working pressure models available. · NACE MR-01-75 specification for H2S service. ° Double-acting hydraulic pressure assists operator in removal and installation of packers. · Vented to prevent well fluids from contaminating hydraulics. Complete unii tested, ready t : ; i : -i STATE OF ALASKA . ALASKa. ~IL AND GAS CONSERVATION (~..,vIMISSION SUNDRY NOTICES AND REPORTS ON WELLS 1. DRILLING WELL [] COMPLETED WELL OTHER [] 2. Name of Operator 7. Permit No. Alaskan Crude Corporation (A.C.C.) 86-7 3. Address 8. APl Number 9525 King St ./ P O Box 111187 Anchorage, AK 50- 133-20333 4. Lo~tion of Well -Section 2, T-5-N, R-11-W 863'West of the East Line 1481' South of North Line (N.E. Corner) 5. Election in feet (indicate KB, DF, etc.) K.B. 80.63 M.S.L. 12. I 6 . Lease Designation and Serial No. Private Fee Land 9. Unit or Lease Name Mike Pelch #1 10. Well Number Same as above 11. Field and Pool Cannery Loop Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: (Submit in Triplicate) Perforate [] Alter Casing [] Perforations Stimulate ~;~ Abandon [] Stimulation Repair Well [] Change Plans [] Repairs Made Pull Tubing [] Other ~ Pulling Tubing (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.) SUBSEQUENT REPORT OF: (Submit in Duplicate) [] Altering Casing [] Abandonment [] Other E] [] [] 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any ~3roposed work, for Abandonment see 20 AAC 25.105-170). A.C.C.i~r~questing approval for the following on behalf of Far North Oil & Gas (F.N.O.G.). The Mike Pelch #1 has sanded off. and plugged the tubing @ 9000' +/- F.N.O.G. plans to clean out the tubing utilizing the Coiled Tubing Method with standard Coiled Tubing Surface Control Equipment. The following Service Co's and equipment shall be utilized to accomplish the above: (1) Arctic Coiled'Tubing/Well control equipment and coiled tubing (2) Dowell Pumping"Unit(Division of Dow Chemicals) (3~ Schlumberger Flow Control System oPerations to commence on approval or 5-12-88 +/- The space below for Commission use / / Date 5 -- 11 -- 88 Conditions of Approval, if any: By Order of Approved by. COMMISSIONER the Commission Date Form 10-403 Rev. 7-1-80 Submit "Intentions" in Triplicate and "Subsequent Reports" in Duplicate STATE OF ALASKA · ' ALASK, _,IL AND GAS CONSERVATION COMI~i._ .ON REPORT OF SUNDRY WELL OPERATIONS ,1~ 1. Operations performed: Operation shutdown [] Stimulate [] Plugging [] Perforate/~ Pull tubing [] 2. Name of Operator ~ / .,~ . ~ -" I 5. Datum elevation (DF or KB) 3. Address, ! ,-, ~ -- - --,, -- I 6. Unit or Property name 4. Location o"Pwell at surface 7. Well number At top of productive interval At effective depth At total depth /~. Approval number ~".,~'- 9. APl number 50-- /3?- 10. Pool 11. Present well condition summary Total depth: measured true vertical /~ 5'DO feet t O ~'~) ~ feet Plugs (measured) Effective depth: measured /~',- /OO true vertical (o / OO feet feet Junk (measured) Casing Structural Conductor Surface Intermediate Production Liner Perforation depth: Length Size ?6~//ro I0 F~ ?~' measured c~2 -5'5/ - ~,27~/' Cemented Measured depth True Vertical depth Tubing (size. grade and measured depth) ,~- ,~ ,//./-,(0 ~'~' E' ~L. 5-.~ ~ ~0¢~ ....... Packers and :~(type and measured depth) /~C~ f,,,f'~-'../'/'~.e'~ ~ ~ .~ ~,~Z~ 12. Stimulation or cement squeeze summary ,,~//~ ~ ~'. 7/~'J~-~ Inte~als treated (measured) pressur 3' - ~ ~--~--~ ~rea~en~ ~e~cr~.~on ~nc~u~n~ vo~u~e~ use~ an~ ~a~ ~3 ' ~, ~ ~ 13. RepreSentative Daily Average Production or Injection Data OiI-Bbl Gas-MCr Water-Bbl Casing Pressure Tubing Pressure Prior to well operation ~-j~c~,~ ,~,.~ Subsequent to operation ~7 ~ ,~ P~ ~-~/~ - ~ ~ ~ ~~ ~ 14. Attachments / Daily Report of Well Operations ~ Copies of Logs and Surveys Run 15.,T//~hereby certiR~_/e,/,"'/" fy that thew,~#,foregoing~.///~ ~"1~/~ C) C~ ~~''*is t rueand correct~,o the~/vbest Qfc.my ~'~kn°wledge~---- ~ ~/;~~~0~ Ii Signed Title /~~ Date ~-~'~ ~rm 10-404 Rev.'12~85 ~ - - /_ -// ,~ · ~ ~ . , ~ ~ Sub~ / :~ : ~/..'~ /~J~.~ ~'~ ~~ ~.~.~~ ~ ~J~ ~in Duplicate~ Far North Oil & Gas Mike Pelch 91 Operational Summary Formerly the Union Oil Company Cannery Loop #2 Received Reentry Permit #86-7 from AOGCC. Cut off dry hole marker and dressed the 9-5/8" casing. Welded on a 11" 5000 psi API flange with tubing donut profile. Nippled up 13-5/8" 5000 psi BOP. Spool, double ram and annular. Nipple up 5000 psi chore manifold. Tested BOP equipment with AOGCC representa- tive Harold Hawkins approval. June 17, 1986. Picked up 8½" bit. Drilled out surface plug and first retainer. RIH to 5289' drill out cement plug and retainer. POOH. Make bit and scraper run. POOH laying down DP. June 30, 1986. Nipple down BOP. RIH with retrievable packer. Set and stack off tubing onto packer. Nipple up new tubing hanger with 6" 5K psi top flange. Nipple up mechanical 6" 5K annular preventor. Nipple up choke line. Screw into tubing and release packer. RIH with retrievable packer on 2-7/8" 6.5# EUE tubing. Set packer @ ±5350'. Land tubing hanger in well head. July 8, 1986. Nipple down BOP. Nipple up tree and adaptor flange. Prepare well to perforate. Manifold through choke manifold. Rig up Dresser Atlas. Run PFC/Gamma Ray. Perforate from 5485 to 5495' with 2-1/8" silver jet. Nipple down Dresser. Open to flow. July 12, 1986. Over the next couple of weeks the well was swabbed for a volume of 200 BBL of gassy water @ 8.98 ppg. Well would not flow on its own. The AOGCC was contacted for verbal approval to deepen the well. Lonnie Smith verbally approved on the condition that a sundry notice would be filed. No notice was received by the AOGCC. Kill zone with KCL work over fluid with calcium carbonate fluid loss additive. Squeeze perfs to hold full column ofl~.~ ppg KCL fluid pluslO00 psi. Nipple down tree release packer and circulate well. Pull tubing to ±2000'. Set packer. Stack tubing on packer with inside BOP. Nipple down well head. Nipple up and test 13-5/8" BOP as before. AOGCC witnessed BOP test. POOH with tubing and packer. Drill out remaining cement plugs and retainer. Clean out to PBTD of 10500'. POOH lay down DP. Nipple down BOP's. Nipple up well head. Run in hole with 6" retrievable packer on 2-7/8" tubing. Set packer @ +9000'. Land hanger in well head. Nipple up tree. ~/~ ~k~ Prepare to perforate. Swab tubing to 5000'. ~- ~¥' ~~O-- Perforated 10,230' to 10,240'. Well would not flow. Rig up 9~O~ ~ ~ dowell to squeeze off perforations. Pumped 30 sacks Class G ~~'O"~ ~ containing 1~ D-60, 0.5% D-13. Squeeze perfs to 2000 psi surface ~ pressure. Cement displaced to 10,100'. l.~Ef[~i~~~ ~ ~ August 7, 1986 Perforated 9254' to 9274' and swabbed well. Recovered 50 to 60 BBLS fluid to 5000' depth. Acidized with 1250 gal of 15% HCL acid containing surfactants and inhibitors. Maximum pressure during treatment was 300 psi. August 25, 1986 Swabbed 100 BBL fluid. Well began to flow gas. No measuring equipment has been used to quantitatively measure the flared gas. The owner estimates that 5 to 7 mm FT3 have been flared. The well is presently shut in with 4000 psi on the tubing. Mr. White would like to have it classified as ready to produce gas. I am attaching a copy of the cement squeeze report, a blue line and a sepia of the PFC/Gamma Ray log. This is the only applicable information I have found that is required to be sent to the AOGCC. The report is true to the best of my know- ledge from the notes I took in July while working on the well and from information supplied to me by Mr. Jim White of the Far North Oil & Gas Co. David L. Reid Petroleum Consultant . -_ MEMORANDJM State of Alaska FILE NO: A o BE~., 8 2. TELEPHONE NO: . THRU: Lonnie C Smith ~/~ SUBJECT~ Commis s loner S~arus of Alaskan Crude Corporation' s 3 wells FROM: Blair E Wondzell Sr Petroleum Engineer Alaskan Crude Corporation (ACC) and its predecessor, Far North 0il & Gas (FNOG), have entered and or drilled three wells as follows (also see the attached'listing "AI.ASKAN CRUDE CORP STatus of Approved Drilling Permits"): 3 "' Mike Pelch ¢I (2-5-11 SM) Permit 86-7 dated ,5/30/86 to re-enzer Union's Cannery Loop #2 P&A). }2-00 lA (Rev. 8185) Memo to CVC December 9, 1987 Page 2 Mike Pelch ~1 is a re-entry of Union's Cannery Loop ~2. This well was entered in June, 1986 and was perf'd at 9254-74' and 9300-10' for testing. No flows swabbed well to 5000' and rec. 50-60 bbls; acidized w/1250 gal of 15% HCL. Swabbed 100 bbls; well began to flow. "No measuring equipment has been used to quantitatively measure the flowed gas. The owner est~mates that 5 to 7 mm FT3 have been flared." The 10-407 shows this as a gas well based on a flowing test -- no test length or rate was listed. It is stated to be a gas well shut in (4000 psi on tubing) pending a pipeline. "Mr. White Would like to have it classified as ready to produce gas." The status, of these wells appears to be as follows: 3. Mike Pelch status is a producer awaiting a pipeline connection, shut in at surface and apparently has 4000 psi on the tubing. .. i r c~.ud STATE OF ALASKA ALAS, . OIL AND GAS CONSERVATION COM .... ,51ON REPORT OF SUNDRY WELL OPERATIONS 1. Operations performed: Operation shutdown [] Stimulate [] Plugging [] Perforate [] Pull tubing [] Alter Casing ~ Other [] Reentry (:Previous Union Cannery 1,oo1:) #2) 2. NameofOperator 5. Datum elevation(DForKB) Far North Oil & Gas KB 80.63 MSL Feet 3. Address 6. UnitorPropertyname PO Box 876, Kenai, AK 99611 Mike Pelch #1 4. Locationofwellatsurface 863' W & 1481' S of NE Corner Sec 2T5N RllW 7. Wellnumber Mike Pelch #1 Attopofproductiveinterval Same Ateffectivedepth Same Attotaldepth Same 8. Approval number 86-7 9. APl number 50--133-20333 10. Pool Cannery Loop 11. Present well condition summary Total depth: measured true vertioal 10500 feet 10500 feet Plugs (measured) 10100 - 10240 Effective depth: measured 10100 true vertical 10100 feet Junk (measured) feet Casing Structural Conductor Surface Intermediate Liner 7 6 91 ' Perforation depth: measured Length Size Cemented Measured depth RECEIVED 2612' Com,,,,~,ot~glO0, 8100' 9~:'.5/!8,"~,io u~Ooiis. A,,~,I~,~.? 10525' to 10525' 7" ~ ..... 9254-9274 (5485-5495) Tested Water trUe Vertical ~ueVerticaldepth Straight Hole 9300-9310 Same Bridged off with Calcium Carbonate Fluid Loss Additive Tubing (size, grade and measured depth) 2-7/8 N-80 EUE 6.5# to 9000' Packers and ~ (type and measured depth) Retrievable @ 9000 ' 12. Stimulation or cement squeeze summary Stimulation Intervalstreated(measured) 9254-9274 9300-9310 ~eatmentdescriptionincludingvolumesusedandfinalpressure 1250 Gal 15% HCL - 300 psi Max Treating Pressure Squeeze 10230-10240 30 Sacks Class 2000 psi FSI 13. Prior to well operation Subsequent to operation Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure N/A 0 N/A Testing Operation 0 Tubing Pressure 4000 psi 14. Attachments Daily Report of Well Operations [] Copies of Logs and SZu,Y,,v~~ [] 15. I hereby certify that the foregoing is true and correct to the best of my knowledge Form 10-404 Rev. 12-1-85 .]-~.,, ~ /__Z//_//~/-C='' Title Date Submit in Duplicate U, $, 4. ' : ' ' ~.-.;~ i~'-'7.~.: .' "- '~ ' - ' MUO DENSITY ADDRESS ~ :-/..-- 2 .-- ., . ' ~m V~SC. . - ' HEAD & PLUGS . SPEC~L-~$T.UC~X~.S .:.:-. :% :.'-. ':~.: .-:/..;~..?.: :-;.::'.-:/-.:: .':::-:::::::~:::/: ::i:: ~ :'-:: ' -':~ :'.i'~--:-i-: D-'s~%,,~ PPESSURE LIMIT ,~ sr~.:%. ) .eSI J BUMP PLUG TO FT J NO. OF CENTRALIZERS F'J ~OT [:3CABLE MuD ~ 8BH~T - SWAGE - ~] KN(X3<OFF SOTOROW lll~ I DEPTH DEPTH ROTATE ~.~., ~ ~IPM I RECIPROCATE {~' TI~ 0 D.R '! SQUEEZE JOB TAJL PIPE: SIZE DEPTH TUBING VOLUME D THREAD ~ ~.- -- . 0 NEW I:~ USED CASING VOL. BELOW TOOC DEPTH ~t.:- ,...~ TOTAL ~ TIME PRESSURE VOLUME JOB SCHEDULED FOR ! ARIVED ON LOCATION PUMPED 8BL TIME: ,~ -- ..~.,.~. DATE: ...,_., ..:.., ,~,1 TIME.'- 1~=--.. DATE: INJECT 2400 RATE ANNUAL VOLUME SERVICE LOG DETAIL PRE-JOB SAFETY MEETING TO E E E ~E~PJ<S S~STEU I /.'6 OF I' CODE ~ATS 2. 3- 4. 5- 6 YIELD CU. FT/SK COMPOSITION OF CEMENTING SYSTEMS SLURRY MIXED BBLS DENSITY remission ~<~OWN FLU,D: TYPE '" ----' 'Z :~,' VOLUME ~ <' HESITATION SO D RUNNING SO I C!RCULAT~N LOST :~EAKDOWN PS, IF,~. ' 'I ; ' ' ~1 I O,SPLACEMENT VOL ASHED THRu PERFS ~] Yes r'] No I TO FT. I MEASURED DISPLACEMENT I~r ~FORATIONSTO -- - ~"~" ' ~ ''~TO ' '~ "-~ I CUSTOMER, REPRESENTATIVE DENSITY ~' YES 0 P~K:) I-! WIRELINE PRESSURE MAX..~,%. CEMEN. T CIRCULATED TO SURF TYPE 0 OIL OF WELL ~" GAS STORAGE INJECTION DOWELL SUPERVISOR MIN ' "'" YES ~ NO 1-] BRINE WATEn C:] WILDCAT P~ssuR[ L~rr TIME PSI BUMP PLUG TO · PRESSURE VOLUME JOB SCHEDULED FOR PUMPED BBL TIME: DATE: INJECT . RATE TOP I~R OW BDT f-'l R I-I W . DEPTH PSI II ,,, I TYPE [~] 'GRADE TAIL. PIPE: SIZE DEPTH' . I-1 THREAD TU~ING VOLUME [::] NEW' E] USED CASING VOL BELOW TOOL DEPTH IARIVED ON LOCATION TIME: DATE: TOTAL ANNUAL VOLUME ' LEFT LOCATION I TIME: DATE: SERVICE LOG DETAIL PRE-JOB SAFETY MEETING REMARKS SYSTEU I' .o.'b~: I $. YIELD CU. FT/SK COMPOSITION OF CEMENTING SYSTEMS SLURRY MIXED BBLS O[~ BREAKDOWN FLUID:TYPE :~ *Z, .... "'Z_ '_~.::~ __~_-,~..,.VOLUME ~ ~,~_.:1,% DENSITY PRESSURE MAX~ ..;~.-..~' . .... MIN [] YES [:::] NO CEMENT CIRCULATED TO SURF [] YES 1~ HESITATION SQ. [-'i RUNNING SO. I CIRCULATION LOST BREAKDOVVN PSI IF"~AL -, ~' -~-.:a ' PSI ' IDISPLACEMENT VOLI WASHED THRU PERFS E:] Yes [] No I TO FT.J MEASURED DISPLACEMENT PERFORATIONSToTO ToT~) ! CUSTOMER REPRESENTATIVEi,. ~ '- ~ :v B~s D WlRELINE TYPE [] OIL E] STORAGE [] BRINE OF WELL !~ GAS [] INJECTION [] WILDC DOWELL SUPERVISOR · ,._ .'~ . : ~ ~-.... TELECOPY No. (907) 276-7542 January 9, 1987 Mr. N. K. (Kelly) Goff Chairman of the Board Alaskan Crude Corporation 10501 Olive Lane Anchorage, Alaska 99515 Dear Kelly: With reference to discussions earlier today, this letter formally acknowledges Our receipt of a completed Designation of Operator (Form 10-411) for each of the following two properties: a~ Mike Pelch Well #1 Sec 2 TSN Rl lW SM b · McCoy Prospect Well Sec 6 TIS R13W SM These two documents attest to the desire of Far North Oil and Gas to relinquish the role of operator for these properties and to the intent of Che Alaskan Crude Corporation to accept operator- ship for these properties. Alaskan Crude Corporation has on file with the commission a blanket bond in good standing. Accordingly, the transfer of operatorship is approved and Far North Oil & Gas is released from their bonding obligation for these specific properties. Sincerely, C. V. Chatterton Cha±rman dlf:!.C.8 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 AAC 25.020 1. Name of Owner FAR NORTH OIL AND GAS 2. Address Box 876 Kenai, Alaska 99611 3. Notice is hereby given of a designation of operatorship for the oil and gas property described below: Property designation: Legal description of property: Mike Pelch # 1 Sec. 2, T5N, R~ 863' WEL, 1481' SNL Property Plat Attached [] 4. Name of Designated Operator Address Alaskan Crude Corporation P.O. Box 11-1187 Anchorage, Alaska 99511 5. Effective date designation January 5, 1987 6. Acceptance of operatorship for the above described property with all attendant responsibilities and obliga- tions is hereby acknowledged Signed ~, ~/ Y~~/ Title President 7. The owner heresy certifies that,4'h~'foregoing is true and correct STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION C0~I~SSION 3001 Porcupine Drive Anchorage, Alaska 99501 (907) 279-1433 TO: P~E: Receipt of the following material which was transmitted via is hereby acknowledged: QUANTITY DESCR I PT I ON Cop7 sent to sender YES, NO K MEMORANDUM Statr of Alaska 'ALASKA OIL :_~D GAS CONSERVATION COMm.:Ih, ~ON TO- C; ?, C DATE: September 10, 1986 Chairman?TM~ F~ LE NO.' D.EWS. 46 THRU: Lonnie C. Smith TELEPHONE NO.' Commissioner FROM' Edgar W. Sipple, Jr. Petroleum inspector SUBJECT: BOP Test Far North Mike Pelch Permit No. 86-7 Sec. 2, T5N, RI1W, SM Exploratory Friday, August 29, 1986: I traveled this date from Marathon's Dolly varden'p~atform', subject of another report, to Far North Oil & Gas' Mike Pelch #1 to witness a BOP test. The test commenced at 5:30 p.m. till 9:30 p.m. Testing was stopped because 'there were no lights on the rig. Saturday August 30. 1986: The BOP test was continued from Z:00 p.m u-n~il 3:36 p',~'. Testing. was stopped because Far North Oil & Gas had to order more equipment to finish the BOP test. _Sunday, August 31~. 1986: The BOP test commenced at 10:00 a.m. and was concluded at 3:00 P.m. There were a total of l0 hours, 30 minutes testing on the rig. There were 2 failures. See Remark section on the AOGCC BOP inspection report which is attached. In summary, I witnessed the BOP inspection on the Far North Oil & Gas Rig #I, Mike Pelch #1. Attachment · Rev 10-84) Location; See'X -T~-N R LI~.~ Drillfn~ C°.ntraetor .~/$ ~& General Housekeeping.-~ ~ Rig- ReserVe Pit . MUd Systems Visual Trip Tank .- PitGauge- X Audio Flow Monitor B- Gas Detectors Test Pressure _5-~o d 0oo ACCUMULATOR SYSTEM Full Charge Pressure _~.~0 ' _ Pressure After Closure'~~ Pump incr, clos, pres, 200 fsig ~ ch% ~ ~ I } ~ .Pressure ~tained, Controls:'Master .Represen_t. ative 0/~ ~J t~'lT~::' .. psis ~DO ~ ~i~3 se~. psig Remote y~' Blinds switch Kelly and F~oor Safety V. alves Upper Kelly/,~l~',Test Pressure Lower ~ellM/O~ Test P=~ssu~ Ball Type I,"~ Test Pressure~ Inside BOP ~ K Test Pressure, Choke Manifold 7 Test Pressure No. flanges Z~ Adjustable Chokes .,/-/~ ~ ~' Hvdrauically operated choke Repair or Replacement of failed equipment to be made within days and Inspector/ Commission office notified. _ /¢ , t , Distribution orig. - AO&GCC ~'~o /.~ CC - Supervisor ~; o O ~ Inspector -MEMORAIV UM TH RU: FROM: Harold R. Hawkins Petroleum Inspector Stat -of Alaska ALASKA OIL A~,~GAS CONSERVATION COMMISS±, _. C. V. Ch~~n/ DATE' June 19 1986 Chaiman ~~ ' ~t~ No.: D.H~. 32 Lonnie C. Smith ~ W~t~NON~ NO.' Co--is s ioner soso~c~: BOP Test Far North Oil & Gas Inc. Mike Pelch ~1 Permit No. 86-7 ~ploratory Sec. 2, T5N, Rl lW, SM Monday, June 16, 1986: I left Anchorage at 8:00 a.m on ERA, arrzvlng Kenal 8:30 a.m. John Boyle accompanied me. We witnessed a partial BOP test this day. Tuesday, June 17, 1986: We witnessed a BOP test. When the tests were completed as far-as we could go, there were 8 failures. The accumulator finally tested o.k. after 3 failures. This left 5 failures for Far North Oil & Gas to get on location and repair and test before drilling into pay zone. I filled out an AOGCC report which is attached. In su.m~n~ary, John Boyle and I witnessed the BOP test that Far North performed in two days on Mike Pelch #1. When we left the location there were 5 failures that had to be repaired or installed before drilling into the pay zone. Jim ~'~ite, the Operator, said he would call us in two days. The tests that were completed were satisfactory. Attachment -'f~? / ., / - ... , .. ( Rev 10-84) O&G //4 5/84 STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION B.O.P.E. Inspection Report Inspector Date Well " Location: Sec T R M Drillin~ Contractor Location, General ~/~ Well Si General Housekeeping O/~Rig ~/~ Reserve Pit ~P~FfP~L~ Mud Systems Vis.ua~ Trip Tank Pit.Gauge ~/ Flow Monitor / GaG Detectors BOPE Stack Annular Preventer Pipe Rams ~.,Blind Rams Choke Line Valves H.C.R. Valve Kill Line Valves . Check Valve .- Audio- Test Pressure Ri # Representative ~-/~ Permit # ~- 7 Casing Set ~ ~/0~ / ft. Representative ACC~LATOR SYST~ Full Charge Pressure ~~ psig Pressure After Closure //~ psiK Pump incr. clos. pres. 200 psi~ . Full Charge Pressure Attained: N2 ~ '&~F~A~ ~U~G~ ~~ ps~g Controls: Mas~er Remo~e~/~ ~linds switch ~over~~ Kelly and Floor Safe~y Valves Upper Kelly Lower Kelly Ball Type Inside BOP Choke Manifold min ~ sec. min 37 sec. Test Pressure ~/ Test Pressure ~/ Test PreSsure ~'~ Test Pressure O/~V/~B~ Test Pressure No. Valves /,~ No. flan§es Adjustable Chokes ,drauicall, ~erated choke Test Results: Failures ~ Test Time f ~ hrs. Repair or Replacement of failed equipment to be made within ~ ~Commission office notified. days and Inspector/ Distribution orig. - AO&GCC cc - Operator cc - Supervisor Inspector LIST' OF EQU_, IPME~f FOR A DRILLING FLUID CONTROL SYST~! MIKE PELCH W~.L NO. i--FORMERLY CANNERY LOOP UNIT NO. 2 1. An operable degasser 2. Solids control equi~nent 3. An appropriately sized shaker screen 4. A recording drilling fluid pit level indicator with both visual and audial warning devices located in the in~ediate vicinity of the driller' s console o 5. A drilling fluid measuring syst~n-or trip tank for accurately deter- mining drilling fluid volumes required to fill the well bore on trips 6. A drilling fluid flow sensor with a read-out convenient to the · driller' s console 'to determine that drilled fluid returns essentially equal drilling fluid pump discharge rates; and 7. Drilling fluid agitators of sufficient' number and size to ensure that uniform drilling fluid, properties are maintained within the' system May 30, 1986 FAR NORTH OTT, AND GAS, INC. KENAI, ALASKA BLOW OUT PREVq~NTER ASSt~BLY MIKE PELCH ~F~.T. NO. 1 40 I 1 116" i Annular BOP 13 5/8" 5000# Revised: May 30, 1986 GFP I l 50 1/8" 4 112" I Double Gate BOP 13 5/8" 5000# DSA 13 5/8" x 11" 5000# 13 5/8" Spool for choke and kill lines 5000 psi 9 5/8" Casing ~xo./~ ~-F.~t o.~. 4 · · INII:Id~Y'-J'IO H0001. 'ON NO Q3.I.NII:Id ~ 986I '0£ X~ :~sTAa~ Cl~,T,~c~O .,~.q'R',T,OIN[~:t s ~ / p~r~ p~lwx~do ~T~o~~ -% ::t~ 3u~,~ :t 8 snonoI5 ~E~ER~/E TAN,~ ~HEMI~AL TANK I~UO PUMP STANDPIPE SWIVEL KELLY MUD MIXING HOPPER SucTION TANK cENTRIFUGAL MIXING PUMP MUD RETUI~NS FROM WELL SHALE SHAKER SAr, ID TRAP SHAKER TANK . ._ MUD (no FAR CIRCULATING SYSTEM scale) NORTH OIL AND GAS. IMCo Kenai. Alaska FAR NORTH OIL AND GAS, INC. KENAI, ALASKA PLAN OF PROCEDURE DR/I.I.ING PROGRA~ MIKE PELCH WRII, NO--~ 1 (FORMERLY CANNERY LOOP UNIT NO. 2) 1. Clean out drilling crib, clean off existing cas~g. 2. Cut casing back and weld 5000 psi, 13 5/8" class flange to 9 5/8" casing. 3. Set 5000 psi wp blo~Dut preventer euipment 4. Test BOPE to 3000 psi v 5. Rig up and drill out plugs to 6500'. 6. Circulate drilling fluid overbalanced to 80 pounds per cubic foot. 7. Perforate and test (DST) zones as identified by logging: i.e. basal Sterling and upper Beluga as justified. 8. If zone is found non-productive, cement will be squeezed thru a cement retainer set not less than 100' above the top perforation. Enough c~ment will be used to fill wellbore from retainer to 100' below base of perforated interval. 9. If test is successful, complete well as justified by testing. 10. If shallow (above 6500' MD) tests are not successful, retest BOPE to 5000 ps~ and drill out plugs to 5MD of 10,600.' 11. Circulate drilling fluid overbalanced to 80 pounds per cubic foot. 12. Perforate ar~ test Tyonek and Beluga Formation zones as identified by logs. Testing will continue at the deepest justifiable zone and prodeed upward to sequentially shallower depths. 13. Each zone, if tested unsuccessfully, will be squeezed as per step *8* above. 14. Cc~lete well as justified by logs and testing. DR/LLING AND EVALUATION TIME: +/- 30 days. Revised: May 30, 1986 GFP LEGEND RND NOTES. 'i · Found official survey monument. ) Indicates datum of record. Basis o~ bearings is the G.L.O. datum of S 0-03 W for the East line of Section 2. Elevations refer to U.S.C.&G.S. bench mark No. Y-80 Elev.= 44.70 ft. above MSL. T5N 2 SCALE l" '= 200' 657 CANNERY Loop UNIT NO. 2 ~_ Cellar Top NE corner cellar Elev.= 53.28 657 , N89-58W - 1320 · ,I i ' 200' LOOP CANNERY ; UNI-T..~NO. 2~- : PREPARED FOR UNION OIL COMPANY OF CALIF. 0 PERA TO._R ~ _- SURFACE LOCATION: 863 FT. from the east line and 1481 FT. from the north line of Section 2, T5N, RllW, S.M., Alaska. Surveyed by: llcLane and Associates, .Inc. Dated Jan. 24, 1981 663.00 ' i . 0 ,P,-_,,,v;... j_]--...~.,?~.. ..... . .... : ~. ~,; ........,. ~~ -. MAY 0 ~:~ 19~5 klaska Oil & Gas Gens. Commission ~ZJ'3' ,,. Anci~u~ ~ge ' Bk 80- 38 May 30, !986 -Telecopy: (907) 276-7542 Mr. James W. White President & CEO Far North Oil and Gas, Inc. P. O. Box 876 Kenai, Alaska 99611 Re: Mike Pe!ch #! Far North Oil & Gas, Inc. Permit No. 86-7 Sur. Loc. 863! W & 1481' ~o. of NorthEast corner Sec. 2, T5N, RI!W, SM. Btmhole Loc. 863' W & 1481' So. of NorthEast corner Sec. 2, T5N, RllW, SM. Dear Mr. ~,~ite: Enclosed is the approved application for permit to drill the above referenced well. The permit to drill does not indemnify you from the probable need to obtain additional permits required by law from other governmental agencies prior to commencing operations at the well site. To aid us in scheduling field work, please notify this office 24 hours'prior to commencing installation of the blowout prevention equipment so that a representative of the Commission may be present to witness testing of the equipment before the surface casing shoe is drilled, l~ere a diverter system is required, please also notify this office 24 hours prior to commencing equipment installation so that the Commission may witness testing before drilling below the shoe of the-conductor pipe. C. ~. C~atte~on" Chairman o f Alaska Oil and Gas Conservation Commission BY ORDER~OF TH.~E COMMISSION dlf Enclosure CC: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Mr. Doug L. Lowery STATE OF ALASKA ALASKA'L,,L AND GAS CONSERVATION COivir41SSION PERMIT TO DRILL i.- 20 AAC 25.005 i - la. Type of work Drill [] Redrill d lb. Type of well. Exploratory ~ Stratigraphic Test [] Re-Entry ~ DeepenCI Service .~1 Developement Gas [] Single Zone 2. Name of Operator FAR NORTH OIL & GAS. IN 3. Address P. O. Box 876, Kenai, Alaska 99611 '4. Location of well at surface 863' W & 1481'. So. of NorthEast corner Section 2, T5N, RllW, SMAt top of productive interval N/A At total depth SAME/Straight hole 12. Distance to nearest property line 863 feet 13. Distance to nearest well 14,857_+ feet 16. To be completed for deviated wells N/A Kickoff depth feet Maximum hole angle 18. Casing program size 5. Datum Elevation (DF or KB) ~ o KB 80.63' abovefeet 6. Property DesignJt'~ FEE SIMPLE -PELCH Development Oil [] [] Multiple Zone El, 7. Unit or property Name Mike Belch 8. Well nu ,mber Mike Belch 9. Approximate spud date May 21st, 1986 14. Numberofacresin property 159.36 Ac. (M. Pelch) 10. Field and Pool Wildcat (previously 11. Type 1Bond (see 20 Statewide hB°nd Cas Amount $ 2 OD. ooo 15. Proposed depth 10,730 feet 17. Anticipate~:l,c~re~s~ure (~e 2o *Ac 25.o35 (e~2,1 Maximum surface~j,~t¢..,~_.~._~!~===~,~,~ psig At total del)t, (TVD)4 6 2 5 psig Setting Depth Top Bottom 'Quantity of cement Specifications Hole Casing WeightI Grade Coupling / Ex isti:~g I N~)t A / 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured 10,730 ' feet true vertical same feet Effective depth: measured 10,730 ~ feet true vertical same feet TVD (include stage data) Plugs (measured)1 @ 182', 2 @ 5307', 3 @ 5595' 4 @ 7152', 5 @ 7525, 6 @ 8375', 7 @ 9032' jSun~ 9220', 9 @ 9928' (measured) Casing Length Size Cemented Measured depth True Vertical depth Structural Conductor 93 ' 20" 93 ' 93 ~ Surface 2586,1' 13 3/8" 1500sx. 2612.6' 2612o6" Intermediate 8100.0~ 9 5/8" 1900sx. 8100.0' 8100o0~ Production 3039.27 ' 7" 600sx. 10730.0 ' 10739 o 0 ~ Liner Perforation depth: measured true vertical 20. Attachments Filing fee -~ Property plat_~ BOP Sketch ~ Diverter Sketch .~ Drilling program [~ Drilling fluid program~ Time vs depth plot [] Refraction analysis [] Seabed report [] 20 AAC 25.050 requirements 21. I hereby certify that the Signed By, Permit N u m6~'r 86--7 gci.S true and correct to the best of my knowledge Title Comptroller Commission Use Only APl number I Approval date 5o--1 33- 2o 3 3 3I 05/30/86 Conditions of approval Sam }les required [] Yes J~ No Mud log required 12-3 Yes Hydrogen sulfide measures [] Yes [] No Directiona, I/survey required [] Yes I~ No Required workin~sure for.,~BO'PjE..._.,r-'!.2~l,;, J~] 3M; ~, 5M; [] 10M; [] 15M Other: / /~// by order of A ....... ,4 ~,,! ! ~' I ~7////~.--~/';~ Commissioner the commission Date 4/~2_3_/__~ i~~ See cover letter for other requirements No STATE OF ALASK3k ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION OF FAR NORTH) OIL AND GAS, INC. for an ) order granting an exception ) to 20 AAC 25.055(a)(1) to ) re-enter the Cannery Loop ) Unit No. 2 well. ) Conservation Order No. 210 May 31, 1985 IT APPEARING THAT: I · Far North Oil and Gas, Inc., by letter dated May 3, 1985, requested the Alaska Oil and Gas Conservation Commission to issue and order granting an exception to 20 AAC 25.055(a)(1) in order to re-enter the Cannery Loop Unit No. 2 well which is only 160 feet from the property line on which it is located. · Notice of public hearing was published in the Peninsula Clarion and the Anchorage Times on May 17, 1985. · There were no protests to the request set forth in the notice of public hearing. FINDINGS: 1. · · · · The Cannery Loop Unit No. 2 well was drilled and abandoned by Union Oil Company of California in 1981. At the time it was drilled, the Cannery Loop Unit No. 2 well was in the Cannery Loop Unit and was drilled as an exploratory well. The Cannery Loop Unit No. 2 well is located 1481 feet from the north line and 863 feet from the east line of Section 2, T5N, RllW, SM. Far North Oil and Gas, Inc. claims the right to enter Cannery Loop Unit No. 2 well to explore, produce and remove hydrocarbons by virtue of an oil and gas lease from Michael Pelch, the owner in fee of the mineral rights beneath a nominal 160 acre tract comprising the SE ~, NE ~; NE¼, SE¼; SW¼, SE~ and ~¼, SE¼ of Section 2, T5N, RllW, SM. The Cannery Loop Unit No. 2 well is located 160 feet from the north line and. 457 feet from the west line of the Michael Pelch Lease. Conservation 0~' Page 2 May 31, 1985 No. 210 · t Far North Oil and Gas, Inc. states the Cannery Loop Unit No. 2 well has potential as a crude oil producer. Exceptions' to spacing requirements can be obtained as provided for in 20 AAC 25.055(b). CONCLUSIONS: I · An exception to 20 AAC 25.055(a)(1) is necessary to re-enter the subject well in order to explore for hydrocarbon production. · Should a hydrocarbon pool be discovered by re-entry of Cannery Loop Unit No. 2 well, the Commission must establish a drilling unit for the pool in accord with AS 31.05.100(a) and enforce the protection of correlative rights for the owners in the pool in accord with AS 31.05.100(c). NOW, THEREFORE, IT IS ORDERED: With an approved Drilling Permit, Far North Oil and Gas, Inc. is permitted to re-enter the abandoned Cannery Loop Unit No. 2 well to explore for hydrocarbons. If the well proves to be capable of hydrocarbon production, regular production will not be permitted until the Commission has established a drilling unit for the pool and issues an order integrating the interests of owners within the drilling unit, absent voluntary integration by the owners. DONE at Anchorage, Alaska and dated May 31, 1985. Harry W./Kugler, ~ommissioner Alaska Oil and G~s~.Conservation Commission Lonnie C. Sm~t]n~ Commissioner Alaska Oil and Gas Conservation Commission ABANDONMENT DETAIL · 9 5/8" cmt ret @ 182'. Cmt to surface· e · e · e · · 9 5/8" cmt ret @ 5307'. Sqz' d below. 9 5/8" cmt ret @ 5595'· Sqz'd below· 9 5/8" cst ret at'7152'. - Sqz'd below. 9 5/8" cmt ret at 7525'. Sqz' d below· 7" cmt ret at 8375'. Sqz'd below. 7" cmt ret at 9032'. Sqz'd below· 7" cmt ret at 9220'. Sqz' d bel ow· " Do 93' -- 13 3/8" C. 2612' · 7" cmt ret at.9928'. Sqz'd below· 7" top @ 7691' --19 5/8" C· 81~D' · . . ._ FAR NORTH OIL & GAS . INC. Mike Pelch Well ~1 tdrilled, plugged and abandoned by UNOCAL as Cannery Loop Well ~2) ~.o,, April 1986 Ta~:en from Records -. CANNERY LOOP UNIT #2 TEST SUMMARY RECEIVED', DATE DST __ 515/81 #4 5/8- #5 9/81 5/10/81. #6 TEST INTERVAL 8,502-8,513 (DIL) 7,642-7,654 (DIL) 7,288-7,314 (DIL) FLOWING SURFACE RATE TIME PRESSURE ~iCF/D HRS. PSIG * 5.5 O. 50 7.5 34 560 0.29 1 12 1032 0.41 1 17 * 5.5 1 * 4 1 , JUN 1 7 tgBt ,ND~~a~ con~. commission AflChQFaOI~ Slight blow to bucket. No change after 8 1/2 hfs SQZ. W/ 200 SX CL "G", Producing some water. Shut-in. Shut-in. sqz. w/ 200 sx Ct: ). Slight blow to' bucket. Reperforate 7,288-7,314', sqz. w/ 200 sx. 5/14/81 #7 5,942-5,958 (DIL) Added 5;868-5,882 Added 5,800-5,818 Added 5,770-5,780 Added 5~740-5,756 '* 3.75 3 * 3 4 * 2.25 2 * 1.5 2 * 4 4 Slight blow to,, bucket. No' change. No change. No change. No bubbling. SQZ. W/ 200 SX. CL "G". 5/15/81 #8 * RATE TOO SMALL TO MEASURE° 5~420-5~440 0.1 3 20 51 1 Medium blow. Shut-in, SQZo w/ 200 sxo CL ~. CANNERY LOOP UNIT #2 TEST SUMMARY J DATE DST 4/26- //1 29/81 TEST INTERVAL 10,040-10,060 (DIL). FLOWING' SURFACE RATE TIME PRESSURE MMC_F/D . HR_s, PSIG 0.026 6.5 0.52 18 , 4/29- //2 -~ 30/81 CD ~ 5/3- ~3 4/81 9,256-58. (DIL) 9,256-9,266 (DIL) Added 9,266-9,276 (DIL) Added 9,283-9,293 (DIL) 9,152-9,1 54 (DIL) 9,152-9,164 (DIL) * RATE TOO SHALL l:O MEASURE° JUN I. 7 19BI : . "' 'g~s~ Oil & Ga~ Cons. Commis~imL " REMARKS I"' · I' 68 '.' ' 1306 , '. Shut-in to reperforate. 73 '' Final flow 3359 [" .. "" '-; Ran bottom hole pressure """".~: .... "'" Buildup Pe = 4625 PSIA SQZ. w/ 200 SX CL "G' * 157 0.203 5 52 1477 0.25 I 42 T281, 0.32 I 55 845 0.37 3 82 1673 0.368 6 104; 3 10.5 0.5 S1 ight blow. Slugs of water produced. Initial shut-in. Shut-in to perforate 0.2 BBLS water produced Shut-in to perforate Shut-in to perforate. .SQZ~ W/ 200 SX CL "G" 1 1 159 0 137 6°2 No gas No gas Shut-in to reperforate 9,152-9,164 Mud produced. Shut-in Nud. produced. SQZo W/ 200 S X CL "G". '~*L-~GEND AND NOTES TCtl ~) Found official survey monument. ( ) Indicates datum of record. · Basis o~ bearings is the G.L.O. datum of S 0-03 for the East line of Section 2. Elevations refer to U.S.C.&G.S. ~ench mark No. Y-80 Elev.= 44.70 ft. above MSL. 0 ! , ~ , N89-58W - 1320 657 ~L CANNERY Loop o°~ UNIT NO. 2 l ~ Cellar i' 200'- Top NE corher cellar Elev.: 53.28 657 , CANNERY L'OOP ..........- .,___ __ _ _ _ _UNIT---,.--NO. .... : T5N SCALE 1 °' '= 200' 663°00 ' PREPARED FOR UNION OIL COMPANY OF CALIF. .-. : -- OPERATOR_ ~ SURFACE LOCATION: 863 FT. from the east line and 1481 FT. from the north line of Section 2, T5N, RllN, S.M., Alaska. Surveyed by' I~cLane and Associates, .Inc. Dated Jan. 24, 19B1 MAY 0 . - ~ - .. Alaska Oil & Gas Cons. Commission .. Bk 80-38 ,1/16 0 KE 0 7 0 0 Al 0 FEE 0 0 0 33 0 0 4 0 9 0 O, CIRI CIRI HALLIER (FNOG) FEE 0 , ,. 36 EXISTING WELL LOCATION ., CIRI CIRI. O PELCH (FNOG) FEE ~IRI r , CFEZ T -' '" (F_N9 :)@LCHO . CIRI. = Cook Inlet Region, Inc. O ' STAT E FNOG = FAR NORTH OIL & GAS, INC. U-M = UNION OIL COMPkNY - MARATHON OIL COMPANY I ce::tify that as applicant for exeception under A.S. 31.05.030 and 20 AAC 25.055(3)(b) that I' have mailed b.y registered mail a notice of tSe filing for exception on this 7th. day of May, 1985 to each of the property owners shown above~ CIRI UNION OIL C._O.z_~ ~a_~:nd_MARATHON OIL £0. ' ~.~EIVE L...__~.~./ MA'Y' 0 S 1985 Alask. a Oii& Gas Cons. Anchorage ALASKA OIL & GAS COMMISSION Atten: Harry Kugler Cannery Loop Well #2 (.re-entry) Jbject Speed Message From FAR NORTH OIL & GAS, INC. Date August 14, 1985 Please substitute the enclosed two pages in the Application for Drilling Permit previously submitted to your office. You may destroy the previous coplies of the Preventer & Choke Assembly. ' ECE! V£'D qlsonJones ~YUNE FORM 44-900 '375. PRINTED IN [/~r. J. ~ietzke, Comptroller 1 I ,.,, .? RECEIVED ~UG i 9 ~985~ Alaska Oil & coa~ Con~,. Commission Anchorage - .I FAITH O"~tJ~D ~P.O. B~x~761 'RECEIVED AUG 1 91985 'I ' AlaSKa Oil & G'as Cons. Commission Anchorage FA Ni~NORTH 01'~D GAS, lINC:. EXTENSION OF OIL AND GAS LEASE : THIS AGREEMENT [EXTENSION] dated this llth day of December 1985, by and between MI CHMkEL JOHN PEACH as Lessor and JAI~ES W. WHITE as Leasee refers to that certain "0il and Gas Lease" dated the 6th of July, 1983 which calledlfor a lease term of two (2) years, expiring on the 6th day of July 1985 and additionally to that certain "Extension of 0il and Gas Lease" dated the 20th day of May, 1985 which extension served to extend the terms of the original lease to the 1st day of January 1986. THEREFORE BY MUTUAL AGREEME-NT (consideration having been made) the term of this lease is hereby extended to the 6th day of July, 1986. All other terms and conditions of the "Lease" are to remain in full force and effect [conSisting o} 17 numbered paragraphs and 10 numbered paragraphs of addendums). IN WITNESS WHEREOF, MICI-L~EL JOHN PEACH has hereunto set his hand and seal this day of December, 1985 and JAI~ES W. WHITE has set his hand and seal this llth day of De~ember, 1985. /- ~ M ~2 GI-LAEE JOHN PEACH . ~-~ ~ES ~ W~ITE- STATE OF OREGON i ss. COUNTY OF LANE BEFORE ME, the undersigned, a Notary Public within and fbr said county and state, on the f~a day of December, 1985, personally aPpeared MICHAEL JOHN PELCH to me personally known to be the identical person who executed the within and foregoing act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my~hand and official seal the day and year last above written. · f!t' ' Notar~ Publi6 '~/ Mv ¢o~mission Expires: ZQ'~?'~ STATE 'OF ALASKA THIRD JUDICIAL DISTRICT SS. BEFORE ME, the undersigned, a Notary Public within and for the State of Alaska, on the llth day of December, 1985, personally appeared JAMES W. WHITE to me personally known to be the identical person who executed the within and foregoing instrument and-acknow- ledged that he executed the same as his free and voluntary act and.deed for the uses and purposes therein set forth ...... IN WITNESS WHEREOF, I have hereunto set my hand and official/s~al the day and year last above written. ~////I . . ~N6%kLy/~hblic for Alaska _ My Con~nission Expires: /~/<.~ EXTENSION OF OIL AND GAS LEASE THIS AGREEMENT dated 20th day of May, 1985, by and between MICHAEL JOHN PELCH as Lessor and JAMES W. WHITE et.al, as Leasee refers to that certain "Oil and Gas Lease" dated the 6th of July, 1983 which called for a lease term of two (2) years, expiring on the 6th day of July 1985. THEREFORE BY ~gJTUAL AGREEMENT the term of this lease is hereby extended to the let day of January 1986 and the expiration date shall now be January 1, 1986. All other terms and conditions of the "Lease" are to remain in full force and effect (consisting of 17 number paragraphs and 10 paragraphs of addendums). IN WITNESS WHEREOP.. Michael John Pelch has herunto set his hand and seal this · ~5~- day of May, 1985 .and James W. White has set his hand and seal this 20th day of May, 1985. Micha~! John Pel~/ ~ ' s W. White ss. Before me, the undersigned, a Notary Public within and for said county and state, on the ~~ day of May, 1985, personally appeared MICHAEL JOHN PELCH to me personally known to be the identical person who executed the within and foregoing instrument and acknowledged to me that he executed the same as his free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year last above written. STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) Notary Public My Commission Expires: ~-~-~ Before me, the undersigned, a Nota~- Public within and for the State of Alaska, on the 20th day of May, 1985, personally appeared JAMES W. WHITE to me personally known to be the identical person who executed the within and foregoing instrument and acknowledged to me that he executed the same 'as his free and voluntary act and deed for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year last above written. Notary Public My Commission Expires :~/~ B , OIL AND GAS LEASE Entered Into thl: the . - ,. 1. ~'lTN~!i. That lessor, lot and In consideration of the sum of ~ ~llars and of the covenants and aeteements hereinafter co~tained tO be 9rrl,rmc~ by :~e l~i~ce_ ha~ this day granted, leased, and let. and by the~c p~e~t~ d~cs h~rc~:' ~rant. lea~e, and let 'exclusively unto the lessee the energy ~ here:n~fter provid-d, for the 9~r~ose of the ~rlllln~. mining. ~n~opcratin~ ~or. pro~c;n~. ~ng suvsn~ all or the mi, ~as. casln~hcn~ ~a~. casinchead ~aso;m: ~n~ ~1 o:~cr ~ascs snd their respective constituent vapor~. ~nd for constru¢:;n~ roads, l=y:n~ pipe linel, buildtn~ tanks, storing oil. buildln~ po~ers. : I tclepho:~ lines ~nd other struc:ure~ thereon ncec~s~ry or convemcnt for the economical operation of said l~nd alone Dr Conjointly w~th i~nex pooled S ~t O~ any ol l~ pr~ucts cover~ b~ th~ lease is or can be produced. 3. ~e t~see ~haH deliver to lessor ~s royalty, free of cost. on the Ic~se. or into the pipe line to which lessee may ~nn~ !~ wel~, the e~u~l ~ p~rt of sl!~ ~:~d nnd s~ved from the le~sed premises, or st the lesssee's o~n may pay to th~ l~ssor for such ~ royalty th~~l~ lot oil ll~%~A~rzx'~ly prevailin6 on the gay such oll is run int~ t~.~.li~r Into t~ storage tanks. ~~ ~ ] · lty~/ t~e markc: value of such gas at ;~e mouth of the we~: Il s~ gas is s01d by the lessee then as rovalt~I the ~roceeds ~f the'sale th-r,or ~-,t ~ . . ~ - - . . _ .... the....~a,h~f }~.e ~ell. ~e lessee ~hall pa~ lesso, as roy~lt}~l th~c~eds from the sale of ~=s ss such ~t the~h ol the well where gms only ~ Ioun~ nnc ~ner~ ~ucn ~a~ i~ hoc sold or used. lessee shml! pay or ten,er to lessor or d~posit to his credi~ in the hereinalter designated depository bnnk, snnH~lly ~t ene of e~ch yearly perio~ durin~ ~'hich such ~s is not sold or used. ns advance royalty, mn amount e~u~l to the delay rental provided In paragraph 5 hereol, and ~'hl!~ md a~vsnce royally ~ so pa~d or tendered or deposited ss aloresuid this lense shall be trente~ ~s ~ 9rogucin~ lease under p~ra~rnDh ~ hereof; the lessor to h~xt ~s Ieee ol charge lrom any ~as ~'eH on the leased premises lot ~tovh sad Inside Il[his In the principal dweEtn~ house on s~id land by makln[ his own eonn~tmns. ~ eonne:tions and use oI ~as to be ~t the lessor's sole risk and expense. 5. 1~ o~rat~ons lot the drilling o~ a v-ell Ior oil or ~ns are not commenced on s~id land on or belore the.. day of ~ ~' this ie~se shall terminate as to both parties, unles~ the lessee shall on or belore seid date pay or ten,er to the lessor or lot ~he lessor'se cre~it'l ': Bank at or its successors, which Bank nnd its suc- cessors · re th~ lessor's ~ent and shah continue ~s the depository of say and all sums p~yable cn~er this Ieeeregardless of chnn~es of ownership In ~s~d r : ~s rentt! nnd cov~r the privilege of dcferrln~ the commencentcnt of oprraticns Ior dr~il;n~ lot ~ period of one year. In like manner nad upon like p~ymen~s or tenders, the commencement of ope:ntions for drillm~ may [t~rt~cr be dclerred Ior l~ke pr:rods successively. All payments or tenders may be made by . . . . . check oz ~rnf: of lessee or an} sss~Rnee thereof, mailed or det~vered on or before lhe rental paym~ dat~. d~rcctly to lessor or assigns or to said ~e~ository bank. and It Is ~nders~ood and n~reed that the consideration lirst recited hereto, the down paymen;, covers not only the privilege ~r~nted to the dal~ when firs= re=la! ts p~}=ble ~s aforesaid, but also the lessee'~ option of extending that per~od ns slores~d sad say ~nd ~11 other rights conferred. Not~'lthztsnding the dr~l~ o~ t~e lessor or his successor- In interest, the payment or tender o[ rentals In the n~ove manner sh~ll be bindin~ on the heirs, devisees, executors. ad~ms~r~tors sod assi~s of ~I1 such persons. ~. 6. If at nay time prior to the discovery of oil or gas duri~ the term ol this lease, the lessee shall drill ~ dry' hole. or holes on this lnnd. br any l~nds wilh which, sam~ ~s unit:zed, th~s lease shatl not terminate, provided operations for thc drilling cf n well shall be commenced by the next ensuin~ rent~l dale or ~=v~ee: t~e lessee by,ins or resumes the payment ol ten;als In the manner and ~mount heremabove provided, ~nd In ~his l~tter event the preceding parser,phs hereof governing the payment ol rentals sad the manner ~nd ellec~ thereof sh~ll continue In force. ~ In c se sa:d lessor on~s n less interest in the ~bove described land than the entire nad ~ndivided fee simple estat~ therein, then the rovslties ~nd reaL- ,is herean prov:~ed s~nll br paid the said lessor in the propo~lon only which his interest bears to the whole nad undlvide~ Ice. This lease %~all bc ti~'e ss to each l~or as to his or hcr interest, ~nd shall be bindln~ on their respective execution hereof, Itotwithst~ndin[ some of the lessors ~bove named may no~ J~n in the execution hereof. ~. Th~ lessee shall have the right to us~. free of cost. gas, oil ~nd water furred on ~aid l~nd ~or its operations thereon, except w~ter from the wel~ of lessor. Wi~rn require~ by lessor, the lessee shall bury its pipe lines below plow dcp{h and shall pay for dnmace caused by its operations to growing crop~ o:, ia ~ lun~. l~o ~ell ~hail be drilled neuter than 200 feet ~o the house or b~rn no'a' on said prc:nt~s withou~ ~'ritten consent of th~ lessor. ~ssee ~hnll have the r:~: ~t sn$- tt:~ durw.;, or ~l~er th~ exparation of, this lease to rcmovo all math:aery, flxlures. ~uses. buildings and other structur~ placed on saxd prc~;~. :ncluO:~ ~e r~ht to ~raw and rcmvv~ all casing, but levee shall be under no obligation to do so. 9. If the e,:ate of either party hereto ts assigned land the pzivilege of nssJ~nln~ in whole or in p~rt is expressly al]owed}, the covenants hereol shah extend to thc he.r;, de~':~ee!, executor~, ndmmtstrztor~, successors, nad assigns, but no chaEge ol ownership In the land or In the rent~ls or royalties for ~ny sum pn}aOI~ c~er t~l~ le~se sh~li be blndm~ on the lessee until it shall have been furnishe~ ~th thc original recorded instrument of conveyance or a duly certllted ~o~. t~=ereo~ or a certtltcd co9}- of the ~il of a~y deceased owner and of the probate thereof, or tcrt:l~cd copy ol thc proceedings showing appointment o[ nn nd- ~:l~*:ralo: or e~t.c~lor ~or the cs[ate of a~ dec~spd owner, whichever is ~D~ropr:atg. together 1'11~ all original recorded instruments of co~ve)'a~c~ or duly cer:;l~ed co~es ~htteol show:n; a complete chain ol title b:~ck to lessor to the full iE:erest clatmed, and ~il payntcnts of rentals made to previous o','ner here- un~,r befgye re~-:pl of ~ald nppropnate documents and notice oI chan~e of ouncrsh~p shall b~ b~n~ln; on any direct or indirect n~sl~nee, grantee, devisee. '= made on or before t~e date same became payable hereunder. 1~ l[ the lea~ premises are now or %hall hcrealter be o~ed in scvernlty or !~ separa:e trlcl~, the prcmi~e~ nevertheless shall be developed nad oper- ated a~ one leese, and ali royalties accruln~ hezeunger shall be treated ax an entirety and shall be dlvidc~ zmon~ and 'pszd to such separate o~'ners In the propo~:on ch~t the a~rcage owned by each separate o~'ner b~ars to the entire leased' scren · ~ ~ere shall be no obh~ation on the part og the i~see to ogl- set ~-ells onse~ar::e tracts into ~h~ch. the l~nd covered by thl~ leas~ may be herenl:er d~v~dcd by sale, devise, drscrnt or otherwise, or to Iurn~sh measur:ni or rec~vin; i~nks. It is'hereby a~rccd that in tho ex'cat this lease shall b~ ~ss~ncd as to ~ part or ~s to parrs of the shove described lan~ sad the ~d~ or owner of any such part or p~rts shall make delault tn the ~uymen~ of t~e Dro~ortionsce part o~ the rental payable by him or them. ~uch default sh~l n~ operate to gele~c or ~IIect th~ lea~e as ~o ~ny par~ of ~aid land upon which the lessee or any assignee hereof sh~il have m~de or shall make payment of rentals. 11. ~s~r ~.~reby wnrr~nt~ nnd ~ree~ to defend the title to t~e l~nd herein descried zn~ ~ees thnt t~e'les~e~. ~t its option, may pay nnd d~ch~r~e in ~oi~ or tn p~rt any ~zxes. mortgages, o~ o~her hens existing, lev:ed, or assessed on or ngam~t the =bos'e descr,bed lands and. in event It exer~scs ~uch up:run, ir ah~lt be subrog~:rd to the rights of say holder or holders thereof and may [ei~burse itself by applyin= to the e~scharge of say such mortgage, tax or other it~a. zn~ royal:~ ~ccrutng hereunder. ~ No=~'i:hstsndtng ~ny[hmg In this lc~se ~ntatned to the contrary. ][ IS expressly agreed tY. lt ti lessee or a~l~s ~hall commence operations for drilhng on nay part of the ~bo:e described land or cnltlzed l~nds ss herein authorized at ant' t~me ~'h:le thzs ]e3se Is In force, this le~se shall remain In force &nd its term3 sr~il continue ~ Ion[ ns su~ operations nrc prosecuted nad. if productson reiuit~ thcrefro.n, then ~s long ns production continues. 13 ~f ~!thm t~e pr!~ lerm of this lc:se, pr~uction on t~e leas~ ~cmis~s ~h=ll eease from any tause, this ieee shall nol terminate provj~ t~o~ ~o~ t~e arlil:n~ of · ~'ell sh~ll b~ commel~ccd ~eIore or on the nell ~n~umc rental payln~ g~.te; or. provided 'lessec ~;lns or rexumcs the payment re~a'~ In t~e ~aar.~er s~d smour, t her~:n~efore prox'sd~d ~f. =l:er tho Kxptrataon ~ the prllnar}- term ol thl~ lca~e, pre,etlon on the Ira~d premt~r~ ceasv from any csuse, thl~ i~ase shall no~ ~e~lnate Drovio~d le~ resumes o~er~on~ f~ dri~i~ · ~'e~[ ~'~t~l~ ~xty I~ ~)'s from s~c~ cessation. ~nd th~s I~ s~ re~n ~ force d~rl~ the pro~:ut~on o~ ~uc~ o~eratsons ~d. I~ pr~ct;~:~ re~ult~ th~r~:o~, the~ as lon~ ~ product~o~ co~t~ucs. ~ ~ssee ~ay ~t sn~ t~me ~u:rcnder or ~nccl th:~ len~.~n ~hole o~ tn ~art ~} ~:~t:in: c~ ~.~l:~.~ ~ch telca~e to the le~or, or by pla~l~ ~sme ]lat. l;,tl~ INetrat:er ac ~ under thc terms ~! sal~ lez~ es to the ~rtmn surren~e:~ or can · e~ · bl~ ~.. y be ~c~oned ~na ~a~d on an ac~e~ ba~s, but ~ lo the por~ou ol th~ ~crea~e no: ~ei~ th~ ~er~s ~nd pro~io~s ~ th~ lc~r ~h~ll continue · n~ ~e~m ~ lull Iotct and ei~ecc lot ~11 purpo~l. 1~ A:~ ~ro~s~n~ hereo[. ~pre:~ or im~h~. ~ail be sub~ to ~il ~e~! ~d ~te l~ =~d the orders, rule. or tr:u!~Hons I~nd Interpre~atl~ns there- o~, ~f ~H ~o~c~n~en~al ~rnc.es ~m~n:~terl:~ the ~ame. an~ th~ lea~ ~huli no~ ~ i~ ~ny ~' ter~ln~t~ ~ho~l)' or p~r~lelly, r. or Ih~ll the le~ be h~ble 1~ ~..~a~e~. I0: ~a~lur~ tc coml,iy ~lth sa) Of thc rxprc~ or lmph~ pro~:~lon~ hr~ol il ~uc~ la;~re ~ ittr~but=bl~ to compliance with ~n)' ~uch ia~s, ordcr~ ~at:.or. ~ all.areal ~all ~ eo,i)lger~ lot all pur~. li~rl:Jd,n~ the pa)-mt~t ot deh~et~ or lo;airy. Io ~ the entire p[~ut[iOll Irom that ~rt~n of ~e ~e~a~ A~d i~clud~ J~ ~uc~ ~lllf ~ th~ ~a~e ma.net ~ thouch ~r~ur~ from the ~ve descried land undcr ~he te~m~ of th~ icaw. ~ lea~ ~ all the t~rm~ and c~d~t~o~ hcr~f shall ex~d ~o and ~ b~dm: u~n Ih~he~r~dn-I~. e~e~o~. ~dmlni~:~atorj. s~ce~ts, and (SEAL~ - ~.. ' . ~ ' f3EAL OIL & GAS LEASE A DDENDL~,,IS I. Lessee agrees to drill at mutually agreed locations, ho~ecver it is agreed that the Lessee shal h~ve the right to drill on each subsec- tion allotted per well per acre and shall not be required to drill slant and or. direct~onaly To reach the geological location selected by the Lessee. 2. Provided the well is a producer and there is sufficient gas to run the production units (treaters, pumps, .ct.) Lessor ~ill have the right,'at no cost at the %~ell head, to enough gsa for his/her non-comercial use to heat his/her hope, barn and greenhouse. 3. Gathering facilities (tanks, treaters,hydrators,etc.) if required will be placed at mutually agreed locations. 4. Lessee shall pay all taxes levied on its improvements and personsl pro- perty and taxes levied on its oil and gas ',~hich Lessee stoFed on the leased land. Lessor shall pay his share of any .tax (~,indfall profit tax , sev- er,nc, tax and or any ~ther t~×) on his royal~v production sh~re at the :,:ell head and Lessee' will make such paymehts for the Lessor and deduct - . same from the Lessor royalty pay~nents. . Lessee may at any time surrender or cancel this lease in v,'hole only , du~-ing the t'..~'o year lease period of ~h~_'s lees., further defer~ent of the lease ~vi]l be negotiated bet~,.,een Less. &nd Lessor. Lessee ~ill notify Lessor by mail or delivery of canceled said lease. 6. Lessee agrees to inder, nify and save harmless Lessor from and against ~.ny and all claims, suits, da.mag.s, cost, losses and e.~penses arising out or growing out of injuries or death of lo~e of or da~.ages to property in g~ny m.,anner directly or it]directly resulting from or c~used by operations of the Lessee on the leased premises or ,ndjg~cent %here%o, or the existence of oil v,,ells, gas wells, derricks, pipeli.~cs or tanks or:~ppurtenances there of,' used by the Lessee on the lease premises or ~djcent thereto, unless such damages br injury is caused by the gross negligence or willful mis- conduct of Lessor or Lessor'.s.' agents or e:.np]oyees. - 7. Upon the termination of this lease in any ~..anner, or if any well is [ abandoned, the Lessee agrees to fei.vel the surface of the land ~nvolved and fill sump holes and excavations made or caused to be made by the Lessee. Lessee else agrees to remove all cement blocks, '~oundations, buildings, pipelines..~ tanks,roads and or any thing else that the Lessee placed or ., caused %0 be placed on the lease.d property and ~ak'e the ground b~ck to its original contour at ,~essor's. request 8. Lessor shall further receive a I2~ working interest 30 days after the date that all drilling and development cost have been repaid ~o ~he investors by the existing's wells production or 5 years after the date the well is put on production, which ever comes first. 9. This lease agreement becomes null and void if Union, Maratho~-.add or any other lease is in effect. IO. Lessee agrees i~o indemnify and save harmless Lessor from and against any and all claims ~ s~i~s · damageasco~t,'l'~)sses and ' ' out of orig~.nal leasesI Umion~ l~rathon and/or etc. · · ~*Chora;~s' ComnTi~$iort ~ } _/~/~// ,ry'_/~; , ' ss. ACKNOV,'I.EI)GMI':NT..FOR INDIVIDUAL~~(Kans., Okla., and Colo.) day of 19~ , personally appeared to me personally known to be tire identical pefso, n__who executed the within and furt. going inslrumcnt and acknowledged to me / that /~ executed the same as /~ free and voluntary act and deed for the uses and purposes therein set forth. 1N WITNESS WHEREOF, I have hereunto set my hand and official seal thc day and year last ahovc written. ~ ~mml~ofi ~'~ ~~~ ~~~ _ , My commission expires ~,,,~, 14, I~°~ , Notary Public. -. STATEOF ~~ }ss. ACKNOWLEDGMENT FOR INDIVIDUAL (I(ans., Ok]a., and Co,o.) to me personally known to be the identical_ per.son__who executed the within and foregoing inst,'ument and acknowledged to me that ~fl-. executed the Same as ~D. J_/2 free an,l voluntary act and deed for the u~'es and purposes therein set forth. IN WITNESS WHEREOF, I h~r_y.g,i~lljieunto set my hand and official seal the day ami year le~t above written. My commission expires ~'"Docember 29, l?~.,. . ,. -_ Notary Public, · . STATE OF ) ' ss. ACKNO1VLEDGMENT FOR CORPORATION COUNTY OF . On this .... day of. A.D., 19 , before me, the undersigned, a Nota,-y Public in and for the county and state aforesaid, personally appeared , to me personally known to be the idenUcal pers[~n who signed the name of the maker thereof to the wi'thin and foregoing' instrument as its President and ackflowledged to me that executed the same as free and voluntary act and deed, and as the free and voluntary act and deed of said corporation; for the uses and purposes therein set forth. Given under my hand and seal the day and year last above written. :. My commission expires . Notary Public. ,, < ~ c NOTE: When signature by mark in Kan::as, said-n~}irk to be witnessed by at..-lea-~t-one person and also acknowledged. Fol' acknow]edg-ment by n',ark, ust- regular Kansas acknowledgment. .., STATE OF__ '- ' ss. ACKNOIVLEDGMENT FOR INDIVIDUAL (Kans., 0kla.,nnd COUNTY OF .,. Before me, the undersigned, a Notary Public, within and for said count>, and state, on this , '.' day of. 19 , persoually appearvd " and to me personally known to be the identical person~who executed the within and foregoing instrun~ent and acknowledged th. me that executed the same as free and voluntary act and deed for the uses and purposes therein set forth. 1N WITNESS WIlEI{EOF, I have i~ereunto set my hand and official seal the day and year last above written. 3Iy commission expires. Notary Public. ALASKA{ la. Type of work. DRILL REDRILL DEEPEN 2. Name of operator STATE OF ALASKA iL AND GAS CONSERVATION PERMIT TO DRILL 20 AAC 25.005 AMISSION lb. Type of well EXPLORATORY DEVELOPMENT OIL [] DEVELOPMENT GAS [] SERVICE [] STRATIGRAPHIC SINGLE ZONE [] MULTIPLE ZONE FAR NORTH OIL AND GAS, INC. 3. Address P. O. Box 876, 508 Willow, Suite "C", Kenai, Alaska 99611 4. Location of well at surface 863' W & 1481' S from the N.E. corner, Sec. 2, T5N, RllW, S.M. At top of proposed producing interval At total depth ',, ., i'," '- ' Same- Vertical Hole ,~?,",'i'. ,, '%"'~', ",,':',L '~,, ,i " 5. Elevation in feet (indicate KB, DF etc.) 6. Lease des!gnatlon and serial no. K.B. 80.63' Above MSL Fee Lease - Pelch 9. Unit or lease name 10. Well number Cannery Loop Unit ~2 11. Field and pool Wildcat 12. Bond information (see 20 AAC 25.025) Type Surety and/or number Amount 16. Proposed depth (MD & TVD) 10,731 'TMD 14. Distance to nearest property or lease line 15. Distance to nearest drilling or completed well feet 13. Distance and direction from nearest town In Kenai City Limits miles 863 feet 17. Number of acres in lease .. feet 159.35 (Pelch) 19. If deviated (see 20 AAC 25.050) 120. Anticipated pressures psig@ ... Surface KICK OFF POINT feet. MAXIMUM HOLE ANGLE oI (see 20 AAC 25.035 (c) (2) .psig@ ft. TD (TVD) 21 18. Approximate spud date May 24, 1985 Proposed Casing, Liner and Cementing Program . SIZE CASING AND LINER SETTING DEPTH QUANTITY OF CEMENT Hole Casing Weight. Grade Coupling Length MD TOP TVD MD BOTTOM TVD (include stage data) - 20" 94~ H-40 Surfac~ 93 ' ~ Driven to Refusal I ~17 1/~" 133/~" 61~ K-55 Surfac~ 2612'I ~" 1500 sx 12 1/4" 9 5/~ 479 N-80' Surface 8100'I 1900 sx 8 1/2'~ 7" 29~ N-80 7691' i 10,730" 600 sx i 22. Describe proposed program: 1. 2. 3. 4. Move in and rig up. Re-bore the existing plugs to 10,7.30 ft. Test any potential oil and gas zone(s). Complete well as justified by logs and testing. D. rillin~ and evaluation time: 30 days I""h ~~e,o~ or ~ommission use CONDITIONS OF APPROVAL Samples required !--lYES []NO ' Permit number ; DATE May 3, 1985 ?,~?' .,,,. Mud Ioorequired ] Directional Survey required I APl number i--]YES r-}NO ~1 r~YES []NO I 50- Approval date SEE COVER LETTER FOR OTHER REQUIREMENTS APPROVED BY ,COMMISSIONER DATE by order of the Commission Form 10401 Rev. 7-1-80 Submit in triplicate CANNERY LOOP # 2 Kenai, Alaska FAR NORTH OIL & GAS, INC. P. O. Box 876 508 Willow, Suite "C" Kenai, Alaska 99611 Alaska, Oi~ & Gas I. ) WELL SITE The well location is fourteen hundred eighty one feet South and eight hundred sixty one feet West of the Nor%heast corner of'Section Two, Township Five North, Range eleven West of the Seward Meridian. (1,~81 ft. So, & 861 ft. W. of the NE corner of Sec.2, TSN, RllW, SM) The well is situated toward the East end of an existing gravel pad with an original ground elevation of 53.28 feet. It is outside of any Corps of Engineers designated wet land area. The gravel pad is devoid of any trees'or vegetation. %t has not been used by the owners in past years. It does not appear to be a habitat for birds, or browse area of moose or other wildlife indigenous to the region. A portion of the area will be isolated and sealed off for use as a reserve pit. II. ) LOCATION ACCESS ..-~' There is an existing gravel road from the Kenai Spur Highway paved to the existin: .,~' well pad. The road is adequate and will support vehicles and equipment that will l~'' be utilized to rework the well. III.) LOCATION CONSTRUCTION Location. construction is proposed to commence upon the State of Alaska approval of the Drilling Permit. The surfaced drill site will be constructed as shown on the attached plat. (Exhibit A) The drilling and support area for supplies is two hundred foot by four hundred foot (200 ft. X 400 ft.). The reserve pit will be located and constructed to prevent contamination of the surrounding area. The reserve pit will be approximately two feet (2 ft.) below ground level and a retaining berm will be constructed around the reserve pit to drill site level. The drill site will be graded to insur~ that any spillage or leaks of fluid or fluids will drain, toward the pit. IV. ) WATER SUPPLY ~t is anticipated that an existing water well will provide sufficient water to ?,~'support the drillmng' operation. V. ) METHOD OF SUPPLY Needed equipment and supplies will be trucked from the Kenai-Soldotna area or Anchorage. Air support is readily available in cases of emergency~ ,, J ,.,. ,~.,. ,. .~ - VI.) PERSONNEL SUPPORT ...V.~g. No camp facility or personnel support will be required on site as there is "~ adequate support facilities, food and lodging, medical attention, located · in Kenai. There will be however, sanitary facilities provided for on-site use. These toilets will be emptied periodically and the material disposed of by a State and/or Borough approved collection agency. VII.) DRILLING OPERATIONS Drilling operations are proposed to begin upon Alaska State approval of the Drilling Permit. Drilling fluid will be HEC Poly-cel System. VIII. ) TESTING OPERATIONS This well is exploratory in' nature and any required testing will be accomplished using approved industry techniques and in accordance with sound engineering practices as approved by the Alaska Department of Natural Resources. If commercial production of hydrocarbons is established at this wellsite, {")additional plans for development and surface handling of production will be submitted. If this well is non-commercial, plugging and abandonment of the well bore will be in accordance with regulations established bY the Alaska Penartment o~ Watural Pesources. IX.) LOCATION AND ROAD CLEAN-UP In the event the well proves to be non-commercial, clean-up operations be-~in? aid continue depending on the weather and ground conditions. The reserve pit will be pumped clear of all free liquid and injected into the well or be hauled to an approved disposal site. The drill site will then be restored in a manner approved by the owner of this private property and/or in accord to Alaska Sta~e regulations, whichever stipulations are the most stringent. X.) WELL BLOWOUT PREVENTION AND CONTROL The rig~is equipped with all standard blowout control equipment which will be installed and tested on a rountine basis for working condition and pres- sure sealing capabilities as required by the Department of Natural Resources, Division of Oil and Gas. In the event that abnormal formation pressures were encountered while drilling, the BOP would be used to "shut-in" the well immed-\.~ lately and confine'-t]i~"pressure within a closed system. FAR NORTH's well site representative in charge has had extensive training and on-site experience in controlling and killing well "kicks". His expertise and the most modern tech- nology wdnld be utilized at this time to restore the well to a normal operating condition. FAR NORTH's representative would be supported by well-trained crew which are required to conduct first line defense and support operational drills on a daily basis. Automatic and manual monitoring equipment will be installed to detect any abnormal variation of the mud system or drilling parameters that might indicated a change in formation lithology or fluid content of varying pressure gradients. A comprehensive engineering study of the geology of the area has been conducted and parameters for a safe efficient operation have been programmed for operations of this well. XI.) HANDLING OF AN OIL SPILL FAR NORTH shall make every reasonable effort to prevent, contain and Clean up oil spills and shall cooperate with others toward such ends. FAR NORTH Will retain the responsibility and authority for direction of clean up operations of spills occurring from facilities FAR NORTH operates. LIABILITY FOR DAMAGES The potential liability for damages resulting from an oil spill is extremely large. Liability may be incurred through ownership of the facility from which the spill occurred or by inadequate clean up operations. In view of the poten- tial for large damage suits, it is imperative that FAR NORTH does not enter into clean up operations of spills of other operators or those of unidentified origin unless the person responsible:. a. requests assistance in or the undertaking of the clean up operation b. guarantees all cost and c. retains direction of the clean up operations. EDUCATION All employees will be indoctrinated and trained in the prevention of pollution, legal requirements, surveillance and notification of authorities and clean up c. procedures. Special pollution abatement instruction, bulletins and personal \ , · ~ consultations will be utilized to ensure that operations conform to this policy. " FAR NORTH will cause ali Contractors and Sub-Contractors to realize the respon- .~ sibility and importance of anti-pollution efforts. FAR NORTH will ask the Con- --) tractors to submit to us a copy of their "Policy on Pollution Control" for field operations. : ~ · FAR NORTH recongnizes an obligation to disclose information concerning its ' stewardship and the advantages of utilizing the release of information to the · · ,~ public of their performance. Education continued Reports on an emergency should focus on the following facts after proper clearance: 1. Time of occurrence. 2. Location. .... ~> 3. General nature of the incident. ', >-~4. Type of product spilled. .,~0.~ 5. Extent of spill. ~. ' 6. Whether spill has been controlled. ~.~ 7. Clean up measures being taken and planned. f'3q'~) 8. Presence or absence of injuries. 9. Special efforts being taken to protect property and wildlife. DO NOT make statements regarding: 1. Liability for spill. 2.. Speculation on cause of spill. 3. Dollar estimate of damage. 4. Estimates of how long it will take to. clean up spill. 5. Promises that property, ecology or anything else will be released or returned to normal. 6. Names of persons injured, missing or killed. A L L Press Releases must be approved by the FAR NORTH Manager. DISCOVERY NOTIFICATION AND ACTION FAR NORTH charges each employee or Contract employee with a share of the respon- ~fc, sibility in the immediate reporting of any spill observed. He should notify a Foreman, Superintendent, or Supervisor of the facility. If such a person cannot be reached, it is imperative that the FAR NORTH Manager of Operations be contacted as quickly as possible. FAR NORTH's Manager is. responsible for immediately notifying the proper Government Agencies. 1. The State of Alaska Department of Environmental Conservation requires a verbal report at Anchorage (274-5527), Soldotna (262-5210). Alaska Department of Environmental Conservation (TWX 090-25-421) to be followed by a copy of the written report in Anchorage . ~i~. 2. The Federal Environmental Protection Agency requires a v~r- bal report in Anchorage (265-4881). 3. The State of Alaska Oil and Gas Conservation regulations re- quire that all accidental loss of oil or gas he reported to the Division of Oil and Gas. In all such reports of fires, breaks,, leaks, escapes or other accidents of this nature, the location shall be given by section, township, range and pro- perty so that the exact location can be readily located on the ground. The Coast Guard will make the initial report to the Division. 6f'Oil"and Gas,i~but the Company will follow with a written report and will specify what steps have been taken to remedy, the situation and give details of the loss. The written report will be mailed to the State of Alaska Oil and Gas Conservation Committee, 3001 Porcupine Drive, Anchorage, Alaska99501. POTENTIAL SOURCES of an accidental spill associated with these facilities are as follows: ,~ ~ ~,, 1. Blowouts of drilling or workover wells. ' ~ ~' 2. Rupture of manifolds, flowlines, separators or surge ~anks. ..... ~ 3. Service boat transfer operations. ::~.t,.~e:~ ,~'4. Submarin~ pipeline failure. ~'~-5. Failure of onshore-offshore treating or storage facilities. fias C~n:~. ~,~,~:~' Anchorage Discovery Notif~at,ion & Action (continued) . · In a situation which requires clean-up operations, FAR NORTH's Manager will coordinate these activities through the Drilling Contractor's Supervisor. DUTIES AND RESPONSIBILITIES FAR NORTH's MANAGER IS: To make and/or monitor a decision as to whether or not an emergency plan goes into effect. To monitor the execution of the. plan.. To monitor the operations for controlling or repairing the well. To monitor the effect of a program to maintain the best possible public relations. To monitor the notification of the appropriate Governmental Agencies. To monitor the conveyance of pertinent information from governmental sources to local personnel. To monitor the selection and utilize methods, techniques, equipment and materials for preventive and residual measures to wildlife and vegetation. WELL SITE DRILLING. ENGINEER IS: ,,.~"~./ To supervise well control and repair. ~'.WELL SITE DRILLING FOREMAN IS: To follow the direction of the Well Site Engineer. FAR NORTH's LEGAL ADVISOR IS: !~'~ To render legal advise and consultation pertaining to the oil spill clean-up ,~'~' To investigate and effect settlement for claims. PLAN OF PROCEDURE: 1. Move in and rig up. 2. Re-bore the existing plugs to 10,730 ft. 3. Test any potential oil and gas zone(s). 4. Complete well as justified by logs and testing. Drilling and evaluation time: 30 days m~ '' e ,Alaska Oil & Gas Cons. Commissm ' ,,o,o_ · A2chor~ '" '-'~" :/.r,'/r£~ ,~55EZ:?.ZY sc,,,, ____ · -- ~f . ..... ABANDONMENT DETA! L . 9 5/8" cmt ret @ 182'. Cmt to surface. . 9 5/8" cmt ret @ 5307'. Sqz' d bel ow. 9 5/8" cmt ret @ 5595'. Sqz' d bel ow. ® 9 5/8" cmt ret at17152'- Sqz' d bel ow. Se 9 5/8" cmt ret at 7525'. Sqz' d below. . 7" cmt ret at 8375'. Sqz'd below. e 7" cmt ret at 9032'. Sqz' d bel ow. . . 7" cmt ret at 9220'. Sqz' d below. 7" cmt ret at 9928'. Sqz'd below. NOTE' While opening helle @ 1736' - had piece of drive pipe shoe fall in. Set a cmt 'plug & redrilled 17 1/2" hole from 1319'. " .... U'~O" D. 93' -- 13 3/8" C. 2612' 7" top @ 7691' -, ~ £L';. I bat i .. '""'--'---- ~ SC.ALE , CANNERY LOOP UNIT. ' ~ .. ~ . HELL ABANDONNENT SCHEHAT~sk o" ~ , ' '~ '1 ~ Aba nde.ned"' · -, ,'~ ~ ~ m t ~"~ ~ , .... CANNERY LOOP UNIT #2 TEST SUMMARY , DATE DST ~ , 4/26- #1 29/81 FLOWING' TEST RATE TIME INTERVAL MMCF/D HRS. 10,040-10,060 0.026 6.5 (DIL). 0.52 18 4/29- #2 30/81 9,256-58. (DIL) 9,256-9,266 (DIL) Added 9,266-9,276 (DIL) Added 9,283-9,293 (DIL) SURFACE ,': - PRESSURE [.~ , PSIG " · · 68 1306 .3359 (." _.... "' 5/3- #3 4/81 9,152-9,154 (DIL) 9,152-9,164 (DIL) * 157 0.203 5 52 1477 0.25 I 42 T281 0.32 I 55 845 0.37 3 82 1673 O. 368 6 104 * 3 * 10.5 0.5 0.1 1 1 159 0 137 6.2 ,ECEIVED JUN 1. 7 1981 ,~ -,~-.~.~ Ot~ & Ga~ Cons. Commissimi REMARKS 'Shut-in to reperforate. Final flow · . -' Ran bottom hole pressure .(~".~-.' ....... .-.__~; Buildup Pe = 4625 PS]~A~ SQZ. W/ 200 SX CL "( ~ S1 ight blow. Slugs of water Produced. Initial shut-in. Shut-in to perforate 0.2 BBLS water produced Shut-in to perforate Shut-in to perforate. SQZ~ W/ 200 SX CL "G" No gas ~. No gas Shut-in to reperforat= 9,152-9,164 Mud produced. Shut-in Mud produced. SQZ. W/ 200 SX CL "G". CANNERY LOOP UNIT #2 TEST SUMMARY DATE DST _ ,., 515/81 #4 TEST INTERVAL 8,502-8,513 (DIL) FLOWING SURFACE RATE TIME PRESSURE ~.CF/D HRS. PSIG * 5.5 5/8- #5 9/81 7,642-7,654 (DIL) O. 50 7.5 34 560 0.29 1 12 1032 0.41 1 17 * 5.5 1 * 4 1 5/10/81 #6 7,288-7,314 (DIL) 5/14/81 #7 5/15/81 //8 5,942-5,958 (DIL) Added 5~868-5,882 Added 5,800-5,818 Added 5,770-5,780 Added 5,740-5,756 5,420-5,440 * 3.75 3 * 3 4 * 2.25 2 * 1.5 2 * 4 4 * 0.1 20 51 * 3 1 RATE TOO SMALL TO MEASURE. j,,-,..-~-':,, o d Ib) ! . .:il . . ,i -. ~. - · · I . i. ~.'. 1' I. · RECEIVED- JUN 1 ? 1981 ,~as Cons, Commission chomg~ Slight blow to bucket. No change after 8 1/2 hrs. · ~- -~' '-"' sqz. W/ 200 SX CL "G" . · ' Producing some water. Shut-in. Shut-in. SQZ. W/ 200 SX CL Slight blow to bucket. Reperforate 7,288-7,314'. SQZ. w/ 200 sx. Slight blow to..bucket. No' change. No change. No change. No bubbling. SQZ. W/ 200 SX. CL "G". Medium blow. Shut-in. sqz. w/ 200 sx. CL STATE OF ALASKA :I ~ ALAS~iI' DIL AND GAS CONSERVATIONt,~OMMISSION SUIMDRY IMOTIC S AND R PORTS WELLS DRILLING WELL COMPLETED WELL OTHER [] Name of Operator UNION OIL COMPANY OF CALIFORNIA 3. Addre~ PO BOX 6247 ANCHORAGE AK 99502 4. Location of Well 863'W & 1481'5 from the NE Corner, Section. 2, T5N, Rl lW, SM. ' 5. Elevation in feet (indicate KB, DF, etcJ KB 80.63' above MSL 12. 7. Permit No. 80-51 8. APl Number so- 733-20333 9. Unit or Lease Name CANNERY LOOP UNIT 10. Well Number Cannery Loop Unit #2 11. Field and Pool 6. Lease Designation and Serial No. . Fee Lease-Michael Pelch-Owner Wildcat Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) ' (Submit in Duplicate) Perforate []-I Alter Casing r-! Perforations )~ Altering Casing r'l Stimulate [] Abandon r"l Stimulation I"1 Abandonment J~ Repair Well r-} Change Plans I-1 Repairs Made I-'1 Other [] Pull ,Tubing I~ Other I'1 Pulling Tubing [] (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.) 13. Describe Proposed or Co~-,pleted Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed work, for Abandonment see 20 AAC 25.105-170). (See attached) A!aska Oi~ & G~s Co{is. At, chore, i!3 RECEIVE. l) MAY 2 7 I981 Alaska 0ii & Gas Cons..Commission Anchorage 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. The space be~w for Commission use -~ Conditions of Approval, if any: Date _~ / ? 7 / R1 ' By Order of Approved by. COMMISSIONER the Commission Dale Form 10-403 Rev. 7-1-80 Submit "Inlentior~s" in Triplica;e ".~bsecluent Reports" in Duplicate Sundry Noti ce Cannery Loop Unit #2 Test And Abandonment Procedure: *A drill stem test was performed on eight separate zones in the Cannery Loop Uni't #2 well. These tests consisted of 4 DST's in the 7" liner (Tyonek zone) and 4 DST's in the 9 5/8" casing (three Beluga zones and one Sterling zone)'. The well was then abandoned. The procedure for testing, zone isolation, and well abandonment is as fol 1 ows' '' l. , The testing was begun at' the lowest proposed interval in the 7" liner and proceeded with tests at sequentially shallower depths. As each indiVidual test was completed, the perforations were squeezed thru a cement retainer set not less than lO0' above the top per. foration and.~, sufficient quantity of cement was used to completely cover all of the perforations, ' Note #1- In the single case of 2 intervals being closer than 100' apart, a cement retainer was set between the intervals and they were squeezed separately. . At the completion of the testing and after the final interval was squeezed, a cement retainer Was set @ 182' and cement was placed to the surface.**" , location clean-up is now proceeding. *Verbal approval from Russ Douglas 4/24/81. **Verbal approval from Russ Douglas 5/15/81. /--._..~'... ~ r.~ ..~ . ; : A well abandonment mark. er was erected at the surface'and final RECEIVED MAY 2 ? ]98! ~a~ Oil & Gas Cons. Coj]lmlss::~tl ~chorage ALASK~ STA,TE OF ALASKA : . ,.)IL AND GAS CONSERVATIONtt, OMMISSION SUNDRY NO¥1C;-S AND R~PORTS ON W ';LI..S 1. DRILLING WELL I'~ COMPLETED WELL [] OTHER r~ 2. Name of Operator 7. Permit No. Union Oil Company of California 80-51 3. Address 8. APl Number P. O. Box 6247, Anchorage, AK 99502 so-735-20355 4. Lo.rich of Well 863'W § 1481'S from the NE Corner, Sec. 2, TSN, RllW, S.M. ,.,.- 9. Unit or Lease Name Cannery Loop Unit 10. Well Number Cannery Loop Unit #2 11. Field and Pool Wildcat 5. Elevation in feet (indicate KB, DF, etc.} 6. Lease Designation and Serial No. · ](R Rr)_ 6_~' nBnv~. M~T. Fee Lease-Michael Pelch-Owner 12. Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT 0F: (Submit in Triplicate) (Submit in Duplicate) Perforate [] Alter Casing ,~ · Perforations [] Altering Casing Stimulate [] Abandon r-] Stimulation ID Abandonment Repair Well I-'! Change Plans r~ Repairs Made [] Other Pull Tubing [] Other [~ - Pulling Tubing [] (Note: Repor~ multil=le completions on Form 10-407 with a submitted Form 10-407 for each completion.) 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed.work, for Abandonment see 20 AAC 25.105-170}. It is proposed to change the 13 3/8" casing point for Cannery Loop Unit #2 well from +5500' to+2500'. Verbal permission given by Blair Wondzell, 2/26/81 ....,....... ,..:, ,:..'! '/O~ '~ e~o' FEB 2 7 1981 ~asA 0ii & Gas Cons. Commission ~ch0rage r · 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sig_9~ 9 [-[,,~ Title Dist. Drlf. SupS, %... omm,.,o.... Conditions of Aoproval, if any: Form 10-403 Rev. 7-1-80 Oa,e 2/26/81 ~.~proved Copy Returned BY Order o~ - - . the Commission Date Submit "Intentions" in Triplir.~te and "Subsecluent Reports" in Duplex. ate LEGEND AND NOTES. , (~ Found official survey monument. ( ) Indicates datum of record. : Basis of bearings is the G.L.O. datum of S 0-03 W for the East line of Section 2. Elevations refer to U.S.C.&G.S. bench mark No. Y-80 Elev.: 44.70 ft. above MSL. ; , N89-58W - 1320 i o 657 CANNERY Loop UNIT NO. 2 / ~. Cellar i .200' Top NE corner cellar E1 ev.: 53.28 657 CANNERY. LOOP : UNIT.NO. : PREPARED FOR UNION OIL COMPANY OF CALIF. OPERATOR .. i! SURFACE LOCATIOrI: 863 FT. from the east line and 1481 FT. from the north line of Section 2, T5ri, RllW, S.M., Alaska. Surveyed by: HcLane and Associates, Inc. Dated Jan. 24, 1981 _ T6H T5N SCALE 1" ': 200' 663.00 ' · Bk 80- 38 1/4 · ~--~, STATE OF ALASKA ~ ALASK/-, ~ AND GAS CONSERVATION C[_.i llSSION SUNDRY NOTICES AND R PORTS ON WELLS DRILLING WELL COMPLETED WELL I"! Name of OperatOr UNION 0IL COMPANY OF CALIFORNIA Addre~ PO BOX 6247 4. Location of Well ANCHORAGE AK 99502 863'W & 1481'S from the NE Corner,. Section 2, T5N, Rl lW, SM. 7. Permit No. . ,80-51 8. APl Number so- 733-20333 OTHER 9. Unit or Lease Name CANNERY LOOP UN!T 10. Well Number Cannery Loop Unit 11, Field and Pool Wildcat 5. Elevation in feet (indicate KB. DF, etc.) ! 6. Lease Designation and Serial No. _ KB 80;63' above MSL I Fee Lease~Michael Pelch-Owner 12. Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: ' SUBSEQUENT REPORT OF: (Submit in Triplicate) (Submit in Duplicate) Perforate [~ Alter Casing ~] Perforations ~] Altering Casing Stimula,. [~ Abandon C~ ~f~-'S Stimulation (~] Abandonmen, Repair Well [~ Change Plans I"1 Repairs Made C:] Other Pull Tubing [~]' Other [~ Pulling Tubing · (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completi.onJ 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting ar propma,:l work, for Abandonment see 20 AAC 25. t05-170), (See attachecl) RECEIVED MAY o 81985 RECEIVED MAY 2 7 1981 Alaska 0ii & Gas Cons. Commission Alaska 0il & Gas Cons. Commission Anchorage , , , 14. I he[eby certify that the foregoing is true and correct to the best of my knowledge. Anchorage Signed The space be~bw I0r Comm,$sion us~ Title Di~t_ Drlg_ Su,nt ConOmtions ol Approval, ,f any: ) . . ,,: T'.. ' , - t A~,oved by ~O~[~NER the Commission Date _q/?7/R1 · · Date Form 10403 Submmt "intentions" in Tr and "Subsequent Reports" in Dt Sundry Notice ' Cannery.Loop Unit #2 . Test And Abandonment Procedure- *A drill stem test was performed on eight separate zones in the Cannery Loop Unit #2 well. These tests consisted of 4 DST's in the 7" liner (Tyonek zone) and 4 DST's in the 9 5/8" casing (three Beluga zones and one Sterling zone). The well was then abandoned. The procedure for testing, zone isolation, and well abandonment is as follows: · The testing was begun at the lowest proposed interval in the 7" liner and proceeded with tests at sequentialllY shallower depths. 2, As each individual test was completed, the perforations were. squeezed thru a cement retainer set not less than lO0' above the top perforation and a sufficient quantity of cement was used to completely cover all of the perforations. .. Note #1: In the single case of 2 intervals being closer than 100' apart, a cement retainer was set between the intervals and they were squeezed separately. 3~ At the completion of the testing and after the final interval was squeezed, a cement retainer was set @ 182' and cement was placed to the surface.** . A well abandonment marker was erected at the surface and final location clean-up is now proceeding. *Verbal approval from Russ Douglas 4/24/81. ~*Verbal' approval from Russ Douglas 5/15/81. RECEIVED MAY 2 7 1981 Alaska 0il & Gas Cons. Commission Anchorage ,-, RECEIVED · , .... iVIAY 0 8 1985 Alasks Oil & Gas Cons. Commission Anchorage ----,, STATE Or= ALASKA .. ' - ALASK/,' '~' .AND GAS CONSERVATION O.( MISSION EIOEITHLY R PORT OF DRILLING AND WOR OVER OPERATIONS Workover operation Drilling well 2. Name of operator UNION OIL COMPANY OF CALIFORNIA PO BOX 6247_ ANCHORAGE AK 99502 Location of Well ats-rf~e 863'W and 1481'S of the NE Corner, Section 2, T5N, RllW, SM. 5. Elevation in feet (indicate KB. DF. etc.} 6. Lease Designation and Serial No. FEE LEASE For the Month of APRIL .., 19 81 ~ Permit No. 80-51 8. APl Number so- 733-20333 9.~it or Lease Name CANNERY LOOP UNIT 10. Well No. CANNERY LOOP UNIT #2 11. Field and Pool WILDCAT 12. Depth at end of month, footage drilled, fishing jobs. directional drilling problems, spud date, remarks TD 10731' Drilled 8 1/2" straight hole from 8789' Footage 1942' Ran logs. ~pud Date 2/25/81 Ran 7" liner f/ 7691' to 10730'. Sqz'd liner lap and dry tested - ok.' to 10731' · Casing or liner run and quantities of cement, results of pressure tests Ran 7" 29# N-80 Buttress liner from 7691' to 10731'. Cemented liner with 600 sx cl "G" cement w/ 5% KCL, 1.7% D-29, .5% D-19, .5% D-31, · 25% R-5, and .2% D-6. Sqz'd liner lap thru ret @ 7662' with 180 sx cl "G" w/ 30 gal/lO0 sx D-45L, 5 gal/lO0 sx R-12L, and 1 gal/lO0 sx D-6L and 120 sx cl "G" W/ 3 gal/lO0 sx R-12L. 14. Coring resume and brief description R ECE't'V':ED. .. Logs run and depth where run ' ~ ' ~5. . Sonic, CNL-FDC-GR A HRD-Di~t.1;e~.. from 10731' to 81'00';" ~ ~ DIL-SP-GR. BHC- J ~,, ,,~..+ co ¢~nm 1073~'t~oul~l~-o°ns' Commission MAY 1 3 1981 Velocity Survey ano ~D~--=~-~" --~ Anchorage .Gyro Survey from 10600' to surface. Alask~ 011 & Gas Cons. Commissic Anchorage 16. DST data, perforating data, shows of H2S, miscellaneous data DST #1- 10040' to 10060' DIL DST #2' 9256' to 9258' DIL Had stabilized rate of 520 MCF/D @ 79 psi. Sqz'd perfs thru ret. @ 9928' w/ 200 sx cl "G" w/ lO gal/lO0 sx R-12L. Testing top portion of zone for water shut-of Had rate of 250 MCF/D @ 72 psi. 17. I hereby certdy that the foregoing is true and correct to the best of my knowledge. SIGNED h rega-r~ess of the status of operations, and must be filed in duplicate with the NOTE--ReP t on this form is recluired for each ca · Oil and Gas Conservation Commission by the 15th of the succeeding month, unless otherwise directed. ' Submit in :; ' ~ STATE OF ALASKA ALASKa. ~,L AND GAS CONSERVATION CJ ..,MISSION E ONTHLY REPORT OF DRILLI IG AHD WOR OVr=R OPER. .TIO[ S Drilling well Wor kover operation Name of operator UN[ON 0IL COHPANY OF CAL[FORN[A 3. Addres~ PO BOX 6247 ANCHORAGE AK 99502 Location of Well ar surfa=, 863' W & 1481 ' S Section 2, TSN, 5. Elevation in feet (indicate KB, DF, etc.) KB 80.63' above MSL from the NE Corner, RllW, SM. 6. Lease Designation and Serial No. Fee Lease - Michael Pelch 7. Permit No. 80-51 APl Number so- 733-20333 g. Unit or Lease Name Cannery Loop Unit 10. Well No. Cannery Loop Unit 11. Field and Pool -Wi 1 dcat #2 For the Month of MARCH ,19 81 i12. Depth at end of month, footage al.tilled, fishing jol~, directional drilling problems, spud date, remarks · Depth 8789' While opening 12 1/4" hole to 17 1/2" @ 1736', had a piece of Footage 6259' junk in hole. Laid in cement plug and sidetracked well @ 1319'. Dr.illed 17 1/2" hole to 2646' casing point. Drilled 12 1/4" hole to 8100' casing point. Drilled 8 1/2" hole to 8789'. 3. Casing or liner run and quantities of cement, results of pressur-, tests Ran 13 3/8" 61# K-55 Buttress casing to Tested shoe to 82 PCF equivalent. 2612'. Cemented casing with 1500 sx cement. Ran 9 5/8" 47# N-80 Buttress casing to 8100'. Tested shoe to 95 PCF equivalent. Cemented casing with 1900 sx cement. 14. Coring resume and brief description 15. Logs run and depth where run Ran DZL/Sonic/GR, FDC/CNL, }! '~ ;: :... ,,; ii~ ~ ,, ,..,. ,.,. HRD-Dipmeter, and SWS from 8100' to 2612'. 16. DST data. perforating data. shows of H2$, miscellaneous data !'. · ECE I'VED'" ECEI VED .. MAY0 8 1985 . APR 1 8 1981 A/~aska 0il & 6as Cons. Co~missjApaska · ' ~nchora~e 0il & Gas Cons. Commission 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. DATE 4/13/81 NOTE.-R~o,t.~ this to,m is reaUired 1or ea~endar m~nth, regardl~s of the s'tatus of operations, and must be filed in duplicate witht -. ~ ..... ~a~i.on Commission by the 15th of ,the succeeding month, unless otherwise dir~ted, Submit i ' STATE OF ALASKA i f' ALASKA OIL AND GAS CONSERVATION COivlMISSION SU DR'mr' ' OTICES AIL D REPORTS OrJ WELLS ' DRILLING WELL COMPLETED WELL I"1 OTHER 2. Name of Operator UN[ON 0IL COMPANY OF CAL[FORN[A 7. Permit No. 80-51 3. Addre~ 8. APl Number PO BOX 6247 ANCHORAGE AK 99502 s0-733-20333 4. Location of Well 863'W & 1481'S from the NE corner, Sec. 2, T5N, Rl lW, SM. 5. Elevation in feet (indicate KB, DF, etc.) KB 80.63' above MSL 6. Lease Designation and Serial No. Fee Lease 12. 9. Unit or Lease Name CANNERY LOOP UNIT. 10. Well Number CANNERY LOOP UNIT 11. Field and Pool WILDCAT Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) . (Submit in Duplicate) Perforate [] Alter Casing I-I Perforations I"1 Altering Casing [~ Stimulate [] Abandon [~ Stimulation I'-I Abandonment r"J Repair Well [] Change Plans [] Repairs Made [] Other [] Pull Tubing [] Other [] Pulling Tubing I-1 (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.) 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting proposed work, for Abandonment see 20 AAC 25.105-170}. The 13 3/8" casing for Cannery Loop Unit #2 well was set at 2612' and cemented with 1250 sxs CL "G" w/ additives followed by 250 sxs CL "G" w/ additives. RECEIVED '! APR - 7 1981 . ,, - ~aska 011 & 6as Cons. Commission Anchorage o. 14. I hereby certify That the forego~d is true and correct to the best of my knowledge, i Sig . · The -~pace~l~o~ow-~ar Comm,ssion. use Conditions of Approval, l! any: 4AY 0 o.,e 4'/6/81 Approved by Alaska 0it & Gas Cons. Cor. missio~ Anchorage By Order of COMMISSIONER the Commission . Date Form 10-403 Rev. 7-1-80 Submit '*Intentions" in Trspl. ,. '": r. rmd '*Subsequent Reports" ;n Ouphl STATE OF ALASKA ,--- ,~T-' /'- ALASKA~" ~ND GAS CONSERVATION Cq' ,SSION SUNDRY 4OTICES AND REPORTS ON WELLS · DRILLING WELL [~ COMPLETED WELL F1 OTHER 7. Permit No. 80-51 8. APl Number 2. Name of Operator UNION OIL COMPANY OF CALIFORNIA 3. Address PO BOX 6247 ANCHORAGE AK 99502 5o-733-20333 4. Location of Well 863'W and 1481'S from the NE Corner, Section 2, T5N, Rl lW, SM Elevation in feet (indicate KB, DF. etc.) KB 80.63' above MSL 0. Lease Designation and Serial No. Fee Lease-Michael Pelch I Unit or Lease Name 1 '~ Cannery Lnno Unit O. Well Number £ann~ry I nnp llnil~ #? 1. Field and Pool / Wildcat 12. Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicatel {Submit in Duplicate} Perforate r'l Alter Casing !~ Perforations r'l Altering Casing I"] Stimulate r'] Abandon F1 Stimulation Fl Abandonment Repair Well [] Change Plans [~ Repairs Made Fl Other Pull Tubing I-1 Other [-I Pulling Tubing Fl (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completiol~.). 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed work, for Abandonment .see 20'AAC 25.105-1701. It is proposed to alter the casing program on Cannery Loop' Unit //2 well as follows- 1. Drill 8 1/2" hole from shoe of 9 5/8" casing at 8100' to +1~,2 2. Run logs. I ~ ,~-' .~....~.L,y ~.~,_..~.~ 0,~. ~1 -7-~1. 3. Run and cement.7" casing at +_lJ~,200 , ~ith td~ ~ +~700'. ~.~.~ . w 4.. Test and complete well as directed. - RECEIVED ,-, MAR 2 1981 , ECEIVED ,' . Anchorage /.; ,MAY 0 8 ]98§ ' ', 14. I hereby certily that the foregoing is true and correct to the best of my knowledge. si 1~. Tit~e Dist. Drlq Supt. Date 13/23/8l Conditions of Approval, if any: Approved by . Form 10-403 Rev. 7-1 COMMISSIONER App.'ovid '"o07 .,o_o, the Commission Date Submmt "Intentions" in Tr~plica:e and "Subsequent Reports'' in Dupl,case STATE OF ALASKA '- *' ALASK,~,'i ',AND GAS CONSERVATION ~' ,MISSION EI( NTHLY REPORT DRILLlr, IG AND WO v[OVER OPERATIONS · Drilling well Wot kover operation 2. Name of operator Union Oil £nmpany nf ('~aliforpi_m 3. Address PO Rnx R747 Anchorn_n~e. AK 99502 4. Location of Well atsur~ac, 863'W and 1481'S of the NE Section 2, T5N, Rl lW, SM. Corner, 5. Elevation in feet (indicate KB. DF, etc.) J 6. Lease Designation and Serial No. ~RR nO~6~' above MSL) Fee tea~_ For the Month of February .lg R1 7. Permit No. RO-S1 8. APl Number 50-- 9. Unit or Lease Name ~nn~t-v I ~n,n 10. Well N~ ~ -- .f'~nn~,v I nnm [Init lJni t 12. Depth at end of month, footage drilled, fishing jobs, directional drilling problems, spud date, remarks TD: 2530' Drove 20" drive Footage: 2491' Drilled 12 1/4" Spud Date:. 2/25/81 Ran logs. Open hole to l? pipe to 93' straight hoie 1/2". to 2530'. 13.' Casing or liner run and quantities of cement, results of pressur-, tests 14. Coring resume and brief description 15. Logs run and depth where run DIL-SP-GR and BHC-Sonic-GR from 2530' to 93'. 16. DST data, perforating data, shows of H2S, miscellaneous data ~ 0 m 8 Gas Cons. Co~'[mission Anchorage 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Oil and Gas Conservation Commission by the 15th of the succeeding month, unless otherwise directed. Form 10-404 Submit in dupl[c f ,i.., STATE OF ALASKA ALASKA.:~ .AND GAS CONSERVATION t '. tMISSION SUNDRY NOTICES AND REPOR?L ON WELLS DRILLING WELL COMPLETED WELL [] OTHER [] · 2. Name of Operator _ Union (3il 'Compan_v of California 3. Address PO Box 6247 Anchorage,-AK 99502 4. Location of Well 863'W & ]48l'$ from the NE Corner, Sec. 2, T5N, RllW, SM. 5. Elevation in feet (indicate KB, DF, etc.) ,.KB R(l. 63' 1;2. o Perforate Stimulate Repair Well Pull Tubing 7. Permit No. 00-51 O. APl Number so- 73:~-20333 9, Unit or Lease Name Kann~rv l nnn llnif 10. Well Number f';annc~v'v ! nnrl 'llni~ a2 11. F,eld and Pool I6. Lease Designation and Serial No. ahnve M~L , Fee tease Wildcat Check Appropriate Box To Indicate Nature of'Notice, Report, or Other Oata NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) (Submit in DuplicateJ C] Alter Casing C] · . Perforations El Altering Casing [] 0 Abandon I-1 Stimulation 0 Abandonment [] [] Change Plans I-1 Repai. Made [] Other [] [] Other 0 Pulling Tubing [] Plug back & side track {Note: Report multiple completions on Form 10-407 with '~ submitted Form 10-407 for each completion.) 13. Describe Proposed or Completed Operations (Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed work, for Abandonment see 20 AAC 25,105-170l. Due to a piece of junk left in the hole at 1736', it was necessary to side track Cannery Loop Unit #2 as follows' 1. Laid in 399 L.F. cmt. plug from 1718' to 1319' 2. Polished off plug to 1324' 3. Kicked off {using blind siJe'track) and redrilled 17 1/2" hole from 1324'. Verbal approval given by Blair Wondzell 3/2/81. Alaska Oil & Gas Cons 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. Thes~ace~e(~ 0r Commis.sion use - --' ' ..... · , ~ ~.~ ~. - Conditions of Approval, if any: MAY o 81985 ~.!,.s~a Oil & Gas Cons. Commission .... Anchorage By Order of Approved by COMMISSIONER the Commission Date Form 10-403 Rev. 7-1~0 Submmt "Intentions" m and "SubseQuent Reports" in Dui STATE OF ALASKA ALASK/~ _ ,L AND GAS CONSERVATION L . .,,MISSION SUNDRY OTIC S Ar;D R PORTS ON W;=LLS DRILLING WELL COMPLETED WELL I-1 OTHER 7. Permit No. 80-51 8. APl Number 5o.133- .20333 2. Name of Operator Union 0il Company o£ Cali£ornia 3. Address P. O. Box 6247, Anchorage,-AK 99502 4. Location of Well . 863'W ~ 1481'S from the NE Corner, Sec. 2, TSN, RllW, S.M. 9. Unit or Lease Name Cannery Loop Unit 10. Well Number Cannery Loop Unit #2 11. Field and Pool Wildcat 5. Elevation in feet (indicate KB, DF, etc.) I 6. Lease Designation and Serial No. KB 80.63' above HSL Fee Le_~$e-Michael Pelch-Owaer 12. Check Appropriate Box To I~dicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) (Submit in Duplicate} Perforate I-I Alter Casing. ~] · Perforations I-! Altering Casing [] Stimulate [] Abandon 0 Stimulation [] Abandonment [] Repair Well I-1 Change Plans ~ Repairs Made [] Other f"] Pull Tubing I"i Other [] Pulling Tubing [] . (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.} 13. Describe Proposed or Completed Operations (Clearly st~,te all pertinent details and give pertinent dates, including estimated date of starting proposed work, for Abandonment see 20 AAC 25.105-170}. It is proposed to change the 13 3/8" casing point £or Cannery Loop Unit #2 well from +2500' to .between +__2600 and+_2650'. Verbal permission given by Hoyle Hamilton, 3/5/81 RECEIVED,. Alaska 0ii & Gas Cons. Cornrnissi~ Anchorage )ace Commission use [ Conditions of Approval, if any: 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. · Title ~-~ ~;~=' ~1 n ~/~ - VE~ ,Alaska Oil & 6as Cons. ' Ancltnr~e COMMISSION~m the Commission Form 10~03 Rev. 7-1 ~0 ' Da,e 3/~/8! Submit "Intentions" in Triple, and "SubseQuent Reports" in Duple: ..~.. STATE OF ALASKA ,-,~ ALASI~ ' .ANDGASCONSERVATIOI~ ( vllSSlON SUNDRY , OTICES AND REPOR, ON WELLS DRILLING WELL COMPLETED WELL I-3 OTHER [] 2. Name of Operator Union Oil Company of California 3. Address P. 0. BOX 6247, Anchorage, Al( 99502 4. Location of Well 863'W & 1481'S from the NE Corne~, Sec. TSN, RllW; S.M. 5. Elevation in feet (indicate KB. DF. etc.) KB gO_ 6:{'. ahnve. MS], 12. 2, 6. Lease Designation and Serial No. Fee Lease-Hichael Pelch-0wner 7. Permit No. 80-$1 8. APl Number 50- 733-20333 9. Unit or Lease Name Cannery Loop Unit 10. Well Number Cannery Loop Unit #2 11. Field and Pool Wi 1 dcat Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: (Submit in Triplicate) (Submit in Duplicate) Perforate Alter Casing ,~ · Perforations [] Altering Casing St im ulate [~] Abandon [] S t im ulation r'] Aba ndonmerlt [] Repair Well I"] Change Plans I~ Repairs Made [] Other [] Pull Tubing [] Other [] Pulling Tubing [] (Note; Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completi.on.) 13. Describe Proposed or Completed Operations. (Clearly state all pertinent details and give pertinent dates, including estimated date of starting an, proposed work, for Abandonment see 20 AAC 25.105-170). It is proposed t.o change the 13 5/8" casing point for Cannery Loop Unit #2 well from +3S00' to+2S00'. Verbal permissiOn given by Blair Wondzell, 2/26/81 ... RECEIVED FEB2-']981 Alaska 0il & Gas Cons. Commission Anchorage 14. I hereby certify that the foregoing is true and ~o~rect.¢o the best of my knowledge. --. ~.~ · . '"-,- - '"' '"'---- · " - x: ~ \~,",~ c · - Conditions o~Approval. ~f any; Approved by Form 10"~03 Rev. 7-1-80 Suut, Date 2/26/81 ~Approv~d Copy ' ,~.. Anchorage BY Order of COMMISSIONER the Commi~tion Submit "Intentions" mn Triphca:l and "Subsequenl Reports" in Duphca~, .. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Re: THE APPLICATION OF FAR NORTH) OIL AND GAS, INC. for an ) order granting an exception ) to 20 AAC 25.055(a)(1) to ) re-enter the Cannery Loop ) Unit No. 2 well. ) Conservation Order No. 210 May 31, 1985 IT APPEARING TH~AT: · Far North Oil and Gas, Inc., by letter dated May 3, 1985, requested the Alaska Oil and Gas Conservation Commission to issue and order granting an exception to 20 AAC 25.055(a)(1) in order to re-enter the Cannery Loop Unit No. 2 well which is only 160 feet from the property line on which it is located. · Notice of public hearing was published in the Peninsula Clarion and the Anchorage Times on May 17, 1985. · There were no protests to the request set forth in the notice of public hearing. FINDINGS: 1. · · · · The Cannery Loop Unit No. 2 well was drilled and abandoned by Union Oil Company of California in 1981. At the time it was drilled, the Cannery Loop Unit No. 2 well was in the Cannery Loop Unit and was drilled as an exploratory well. The Cannery Loop Unit No. 2 well is located 1481 feet from the north line and 863 feet from the east line of Section 2, T5N, RllW, SM. Far North Oil and Gas, Inc. claims the right to enter Cannery Loop Unit No. 2 well to explore, produce and remove hydrocarbons by virtue of an oil and gas lease from Michael Pelch, the owner in fee of the mineral rights beneath a nominal 160 acre tract comprising the SE k, NE k; NE¼, SE¼; SW¼, SEk and ~k, SE¼ of Section 2, T5N, RllW, SM. The Cannery Loop Unit No. 2 well is located 160 feet from the north line and 457 feet from the west line of the Michael Pelch Lease. Conservation Or/- ~ No. 210 Page 2 May 31, 1985 · Far North 0il and Gas, Inc. states the Cannery Loop Unit No. 2 well has potential as a crude oil producer. · Exceptions to spacing requirements can be obtained as provided for in 20 AAC 25.055(b). CONCLUSIONS: . An exception to 20 AAC 25.055(a)(1) is necessarv to re-enter the subject well in order to explore for hydrocarbon production. · Should a hydrocarbon pool be discovered by re-entry of Cannery Loop Unit No. 2 well, the Commission must establish a drilling unit for the pool in accord with AS 31.05.100(a) and enforce the protection of correlative rights for the owners in the pool in accord with AS 31.05.100(c). NOW, THEREFORE, IT IS ORDERED: With an approved Drilling Permit, Far North Oil and Gas, Inc. is permitted to re-enter the abandoned Cannery Loop Unit No. 2 well to explore for hydrocarbons. If the well proves to be capable of hydrocarbon production, regular production will not be permitted until the Commission has established a drilling unit for the pool and issues an order integrating the interests of owners within the drilling unit, absent voluntary integration by the owners. DONE at Anchorage, Alaska and dated May 31, 1985. CAiasV~aCho .~t %nr~ irman Gas Conservation Commission Harry W./Kugler, ~ommissioner Alaska Oil and G Conservation Commission Lonnie C. Sm~_t'h~ Comm±ssioner Alaska 05.1 and Gas Conservat:±on Comm±ss±on Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re.. The application of FAR NORTH OIL AND GAS, INC., dated May 3, 1985, requesting an exception to 20 AAC 25.055(a)(1) in order to re-enter for oil and gas exploration the abandoned Cannery Loop Unit No. 2 well drilled by Union Oil Company of California in 1981. Notice is hereby given that Far North Oil and Gas, Inc. has requested the Alaska Oil and Gas Conservation Commission to issue an order granting an exception to 20 AAC 25.055(a)(1) to provide for the re-entry of the abandoned Cannery Loop Unit No. 2 well which is located 160 feet from the property line upon which the well is located. An exploratory well must be 500 or more feet from a property line (20 AAC 25.055(a)(1)) but 20 AAC 25.055(b) provides for an operator to request an exception to the 500 foot standback. Parties who may be aggrieved if the referenced order is issued granting the referenced request are allowed 10 days from the date of this publication in which to file a written protest stating in detail the nature of their aggrievement and their request for a hearing. The place of filing is the Alaska Oil and Gas Conservation Commission, 3001 Porcupine Drive, Anchorage, Alaska 99501. If such a protest is timely filed, a hearing on the matter will be held at the above address at 9:00 AM on May 30, 1985 at which time protestants and others may be heard. If no such protest is timely filed, the Commission will consider the issuance of the order without a hearing. -Harry W./Kugler / Commissioner Alaska Oil & Gas Conservati~.n Commission ~t ~f P'~" 6'6r / FAR NORTH OIL AND GAS, INC. May 3rd, 1985 Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501 Attention: Mr. Chatterton Gentlemen: This letter is FAR NORTH OIL AND GAS, INC.'s formal request for an exception to well spacing as specified in 20 AAC 25.055(3)(b). Cannery Loop~#2 well is located 863 feet West of the Eastern boundary and 160 feet South of the Northern boundary. The surface location, work pad and well bore in its entirety is located on the fee simple land owned by Michael Pelch. UNION OIL and MARATHON OIL originally leased the mineral rights from M. Pelch. Union Oil~Marathon Oil as operator~and their partners (¢IRI, PACIFIC LIGHTING GAS DEVELOPMENT) originally drilled Cannery Loop Well #2 in 1981. Union and its partners plugged and abandoned the well. Union and its partners considered the well to be non-commercial. Fee simple land owners by the right of "rule of capture" have the right to seek and produce any hydrocarbons that exist beneath their land. Michael Pelch and FAR NORTH OIL AND GAS, INC. plan to re-enter and re-test the Cannery Loop Well #2. The well has potential as a crude producer. Ail work will be performed on the existing gravel pad. Any required disposals will be do~e in-'a~ approved State or Borough Site. There can be no adverse effects to adjacent property or mineral owners (which incidently are the same original partners who plugged and abandoned this well, i.e. Union Oil, Marathon Oil, CIRI, Pacific Lighting Gas Development). If commercial production is found, FNOG will apply to the State for proper pooling (A.S. 31.05.100) or unitization (A.S. 31.05.110). P.O. BOX 876 KENAI, ALASKA 99611 (907) 283-7699 T6tl 35 LEGEND AND NOTES. (;""' , · ~ Found official survey monument. ( ) Indicates datum of record. Basis of bearings is the G.L.O. datum of S 0-03 W for the East line of Section 2. Elevations refer to U.S.C.&G.S. bench mark No. Y-80 El ev.= 44.70 ft. above MSL. TSN SCALE 1" ' 200' i N89-58W - 1 320 657 .t ' __.,. CANNERY Loop o°" UNIT NO. 2 / ~_ Cellar i · 200' Top NE corner cellar E1 ev.: 53.28 657 I I ...... '~ora~ ,,ot%4v%° CANNERY : UNIT : LOOP NO. 2 i . i · PREPARED FOR UNION OIL COMPANY OF CALIF. O PER/~ TOI~ _ SURFACE LOCATION'. 863 FT. from the east line and 1481 FT. from the north line of Section 2, T. 5N, RllW, S.14., Alaska. Surveyed by' JlcLane and Associates, Inc. Dated Jan. 24, 1981 Alask8 663.00 ' MAY 0 8 1985 Oil & Gas Cons. Rrh','hmiC, sj:ln Anchorage Bk 80- 38 J/16 18 KE Al 4 8 -© -0 I 'f i CIRI t CIRI. _ CIRI. HALLIER (FNOG) FEE 0 FEE: PELCH. CFNO¢) E~e¢,:~'er O/ \C EXISTING WELL LOCATION · CIRI = Cook Inlet Region, Inc. FNOG = FAR NORTH OIL & GAS, INC. U-M = UNION OIL COMPANY - MARATHON OIL COMPANY I certify that as applicant for exeception under A.S. 31.05.030 and 20 AAC 25.055(3)(b) that I' have mailed b.y registered mail a notice of the filing for exception on this 7th~ day of May, 1985 to each of the property owners shown above, CIRI UNION OIL CO and MARATHON 0IL CO. ' ' ' ' FAR MORTH.OIL AND GAS, tNC/'~ By: .... 'CEIVED tvlAY 0 8 ]985 Alaska Oij & Gas Co:.s.. Co,,lml,-~,,,or:' '"'' · "','~' Anchora:~ ~ FAR NORTH OIL AND GAS, INC. COOK INLET REGION, INC. CIRI Building 2525 "C" Street P. O. Drawer 4-N Anchorage, Alaska 99509 Union Oil Company of California P. O. Box 6247 Anchorage, Alaska 99502 May 3rd, 1985 Notice to Property Owners in Accord with 20 AAC 25.055(3)(b) AiS. 31.05.030 Marathon Oil Company P. 0. Box 102380 Anchorage, Alaska 99510 TO THE PROPERTy. OWNER ADDRESSED: MICHAEL PELCH and FAR NORTH OIL AND GAS, INC. have applied to the State of Alaska for a Permit to Drill (20 AAC 25.005) to re-enter Cannery Loop Well #2. MICHAEL PELCH and FAR NORTH OIL AND GAS, INC. have requested an exception to well spacing under 20 AAC 25.055(3)(b) and A.S. 31.05.030. MICHAEL PELCH and FAR NORTH OIL AND GAS, INC. as operator and leasee plan to re-enter and re-test and produce, if possible, Cannery Loop Well #2. As you have mineral rights adjacent toi'the PELCH property we invite you to participate with us in the development of this well. Please advise us at your earliest convenience if you decide to participate. If you decline to participate it is anticipated that your desire not to participate will not be construed as an objection to MICHAEL PELCH and FAR NORTH OIL AND GAS, INC.'s re-entering Cannery Loop Well #2. If we do not receive a reply to this invitation to participate within ten days (10 days) of your receipt of this letter it will be assumed that you do not wish to participate. If commercial production is found, FNOG will apply to the State for proper pooling (A.S. 31.05.100) or unitization (A.S. 31.05.110). Yours truly, James W. White, President & CEO RECEIVED MAY 0 8 1985 Alaska Oil & Gas Cons. Corm~iJs:-;Jon Anchorage; '~. P.O. BOX 876 KENAI, ALASKA 99611 (907) 283-7699 LEGEND AND NOTES. ( (~ Found official survey n~nument. ( ) Indicates datum of record. · Basis of bearings is the G.L.O. datum of S 0-03 W for the East line of Section 2. Elevations refer to U.S.C.&G,S. bench mark No. Y-80 El ev.= 44.70 ft. above MSL. i i 657 CANNERY Loop UNIT NO. 2 ~_ Cellar , N89-58W - 1320 ,t j - 200' Top NE corner cellar Elev.: 53.28 657 i 'e CANNERY UNIT : LOOP NO.,?. T6H PREPARED FOR UNION OIL COMPANY OF CALIF. OPERATOI~ ~ _ SURFACE LOCATION: 863 FT. from the east line and 1481 FT. from the north line of Section 2, TSN, Rl lW, S.M., Alaska. Surveyed by: llcLane and Associates, Inc. Dated Jan. 24, 1981 T5N SCALE l" : 200' 663.00 ' 35 fl~3~ ,1/16 O 0 7 KE Al 0 FEE © 0 0 4 0 9 .+ 0 'I 0 ~0 36 CIRZ CIRI R.iLLIER (FNOG) FEE O EXISTING WELL LOCATION · , CIRI CIRI PELCH (_FNOO) FEE FEY.. ]~OLCHOK1 J ,.. C!RI = Cook Inlet Region, Inc. FNOG = FAR NORTH OIL & GAS, INC. U-M = UNION OIL COMPANY - MARATHON 0IL COMPANY O ,,, STAT~- "" ""1'i I certify that as applicant for exeception under A.S. 31.05.030 and 20 AAC 25.05~(3)(b) that I have mailed b.y registered mail a notice of the filinF for exception on this 7th. day of May, 1985 to each of theOIL p.r~opertYco, owners shown above~ CIRI? uNION p$,L CO., and MARATHON ~= ~o~+0~ A= OA~, ~/~ ~ · ~ ~ . ".~ / ~r~sident and CEO ',,, ,, ~ ~ ',..' ~.. 43 ',.' ~', : ::-;!~,:- i ~ POTENT~ SOURCES of an accidental spill associated with these facilities are ~ ~ as follows: ~- -~ REC El\'"" ~ ~.. ~o~ou~s o~ ~=~~ o~ ~o=~ov.~ ~.~.. , 2. Rupture of ~nifolds, flowlines, separators or surge tanks. J" 3~ Semite boat ~ransfer opera~ions. ~ _ ? '~" ~ MAY 0 8 1985 ~~,laska Oil &'6as Cons, Anchorage' 4. Submart~e pipeline failure. _ ___ _ ;I 5. Failure of onshore-offshore treating or storage facillties.~ · · _ __.--L .... _.[ 'ir I ' t , f .[ I' i' -/ J . DO NOT WRITE IN :~' ~" THIS SPACE ~ · · · · · · ~ ~ · ~ · · ~ · u-I O · 0 cv"} · · ~ .r~ · .-t ~ O · . . ~ ~ · ~ 0 I · . . ~ · ~0 * ::~o · ~ : ~ ~o e ~ : ~ ~ 0 ~ ' · : · · : · · · · · · · : · · · ; · DO NOT WRITE IN THIS SPACE ~ .o