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Home My WebLink About222-017 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov James Ohlinger Staff CTD Engineer ConocoPhillips Alaska, Inc. PO Box 100360 Anchorage, AK 99510-0360 Re: Kuparuk River Field, Kuparuk River Oil Pool, KRU 3G-02L1-01 ConocoPhillips Alaska, Inc. Permit to Drill Number: 222-017 Surface Location: 2538' FNL, 345' FWL, SEC 24, T12N, R8E, UM Bottomhole Location: 1283' FSL, 554' FEL, SEC 14, T12N, R8E, UM Dear Mr. Ohlinger: Enclosed is the approved application for the permit to drill the above referenced well. The permit is for a new wellbore segment of existing well Permit 190-137, API 50-103-20146-00- 00. Production should continue to be reported as a function of the original API number stated above. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Jeremy M. Price Chair DATED this ___ day of February, 2022. Jeremy Price Digitally signed by Jeremy Price Date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................................................................................................................................................. 3 'ULOOLQJ)OXLGV3URJUDP (Requirements of 20 AAC 25.005(c)(8)) ................................................................................................................................................. 3 $EQRUPDOO\3UHVVXUHG)RUPDWLRQ,QIRUPDWLRQ (Requirements of 20 AAC 25.005(c)(9)) ................................................................................................................................................. 4 6HLVPLF$QDO\VLV (Requirements of 20 AAC 25.005(c)(10)) ............................................................................................................................................... 4 6HDEHG&RQGLWLRQ$QDO\VLV (Requirements of 20 AAC 25.005(c)(11)) ............................................................................................................................................... 4 (YLGHQFHRI%RQGLQJ (Requirements of 20 AAC 25.005(c)(12)) ............................................................................................................................................... 4 3URSRVHG'ULOOLQJ3URJUDP (Requirements of 20 AAC 25.005(c)(13)) ............................................................................................................................................... 4 6XPPDU\RI&7'2SHUDWLRQV /LQHU5XQQLQJ 'LVSRVDORI'ULOOLQJ0XGDQG&XWWLQJV (Requirements of 20 AAC 25.005(c)(14)) ............................................................................................................................................... 5 'LUHFWLRQDO3ODQVIRU,QWHQWLRQDOO\'HYLDWHG:HOOV (Requirements of 20 AAC 25.050(b)) ..................................................................................................................................................... 6 $WWDFKPHQWV $WWDFKPHQW'LUHFWLRQDO3ODQVIRUWKH*/ */ODWHUDOV $WWDFKPHQW&XUUHQW:HOO6FKHPDWLFIRU*/ */ODWHUDOV $WWDFKPHQW3URSRVHG:HOO6FKHPDWLFIRUWKH*/ */ODWHUDOV 37'$SSOLFDWLRQ*/ */ 3DJHRI )HEUXDU\ :HOO1DPHDQG&ODVVLILFDWLRQ (Requirements of 20 AAC 25.005(f) and 20 AAC 25.005(b)) 7KHSURSRVHGODWHUDOVGHVFULEHGLQWKLVGRFXPHQWDUH*/ */7KHODWHUDOVZLOOEHFODVVLILHGDV ³Development´ZHOO /RFDWLRQ6XPPDU\ (Requirements of 20 AAC 25.005(c)(2)) 7KHODWHUDOVZLOOWDUJHWWKH$6DQGSDFNDJHLQWKH.XSDUXNUHVHUYRLU6HHDWWDFKHGIRUPIRUVXUIDFHDQG VXEVXUIDFHFRRUGLQDWHVRIWKH*/ */ %ORZRXW3UHYHQWLRQ(TXLSPHQW,QIRUPDWLRQ (Requirements of 20 AAC 25.005 (c)(3)) 3OHDVHUHIHUHQFHEORZRXWSUHYHQWLRQ%23VFKHPDWLFVRQILOHZLWKWKH&RPPLVVLRQIRU1DERUV&'5$& %23HTXLSPHQWLVDVUHTXLUHGSHU$$&IRUWKUXWXELQJGULOOLQJRSHUDWLRQV 3LSHUDPVEOLQGUDPVDQGWKH&7SDFNRIIZLOOEHSUHVVXUHWHVWHGWRSVLDQGWRSVL8VLQJWKH PD[LPXPIRUPDWLRQSUHVVXUHLQWKHDUHDRISVLIRXQGLQ*DW¶79'LHaSSJ (0:WKHPD[LPXPSRWHQWLDOVXUIDFHSUHVVXUHLQ*DVVXPLQJDJDVJUDGLHQWRISVLIWZRXOG EHSVL6HHWKH³Drilling Hazards Information and Reservoir Pressure´VHFWLRQIRUPRUHGHWDLOV 7KHDQQXODUSUHYHQWHUZLOOEHWHVWHGWRSVLDQGSVL 'ULOOLQJ+D]DUGV,QIRUPDWLRQDQG5HVHUYRLU3UHVVXUH (Requirements of 20 AAC 25.005 (c)(4) Reservoir Pressure and Maximum Downhole Pressure 5HTXLUHPHQWVRI$$&FD The formation pressure in KRU 3G-02 was observed at 3715 psi @ 5807’ TVD (12.3 ppg) during the recent RWO performed (ending 2/11/2022). The maximum downhole pressure in the 3G-02 vicinity is that of 3G-23 measured at 4577 psi @ 5859’ TVD (15 ppg – Measured 3/12/2019). Potential Gas Zones (Requirements of 20 AAC 25.005 (c)(4)(b)) 7KHRIIVHWLQMHFWLRQZHOOVWR*KDYHLQMHFWHGJDVVRWKHUHLVDSRVVLELOLW\RIHQFRXQWHULQJIUHHJDVZKLOH GULOOLQJWKH*/ */ODWHUDOV,IJDVLVGHWHFWHGLQWKHUHWXUQVWKHFRQWDPLQDWHGPXGFDQEH GLYHUWHGWRDVWRUDJHWDQNDZD\IURPWKHULJ Potential Causes of Hole Problems (Requirements of 20 AAC 25.005 (c)(4)(c)) 7KHPDMRUH[SHFWHGULVNRIKROHSUREOHPVLQWKH*/ */ODWHUDOVZLOOEHIRUPDWLRQLQVWDELOLW\ DFURVVIDXOWV0DQDJHGSUHVVXUHGULOOLQJ03'ZLOOEHXVHGWRUHGXFHWKHULVNRIVKDOHLQVWDELOLW\DVVRFLDWHG ZLWKIDXOWFURVVLQJV 3URFHGXUHIRU&RQGXFWLQJ)RUPDWLRQ,QWHJULW\WHVWV (Requirements of 20 AAC 25.005(c)(5)) 7KH*/ */ODWHUDOVZLOOEHGULOOHGXQGHU $$&IRUWKUXWXELQJGULOOLQJRSHUDWLRQVVRD IRUPDWLRQLQWHJULW\WHVWLVQRWUHTXLUHG T formation pressure in KRU 3G-02 was observed at 3715 psi @ 5807’ TVD (12.3 ppg) (q ()()()) RIIVHWLQMHFWLRQZHOOVWR*KDYHLQMHFWHGJDVVRWKHUHLVDSRVVLELOLW\RIHQFRXQWHULQJIUHHJDV S S S PD[LPXPIRUPDWLRQSUHVVXUHLQWKHDUHDRISVLIRXQGLQ* SJ LHaSSJDW¶79' 37'$SSOLFDWLRQ*/ */ 3DJHRI )HEUXDU\ &DVLQJDQG&HPHQWLQJ3URJUDP (Requirements of 20 AAC 25.005(c)(6)) New Completion Details /DWHUDO1DPH/LQHU7RS 0' /LQHU%WP 0' /LQHU7RS 79'66 /LQHU%WP 79'66/LQHU'HWDLOV */a¶¶¶¶/67/VORWWHGOLQHU ZLWKVKRUW\GHSOR\PHQWVOHHYH Existing Casing/Liner Information &DWHJRU\2':HLJKW SSI*UDGH&RQQHFWLRQ7RS0'%WP0'7RS 79' %WP 79' %XUVW SVL &ROODSVH SVL &RQGXFWRU´+:HOGHG¶¶¶¶ 6XUIDFH´-%7&¶¶¶¶ 3URGXFWLRQ´-%7&¶¶¶¶ 'LYHUWHU6\VWHP,QIRUPDWLRQ Requirements of 20 AAC 25.005(c)(7) 1DERUV&'5$&ZLOOEHRSHUDWLQJXQGHU$$&IRUWKUXWXELQJGULOOLQJRSHUDWLRQV7KHUHIRUHD GLYHUWHUV\VWHPLVQRWUHTXLUHG 'ULOOLQJ)OXLGV3URJUDP (Requirements of 20 AAC 25.005(c)(8)) Diagram of Drilling System $GLDJUDPRIWKH1DERUV&'5$&PXGV\VWHPLVRQILOHZLWKWKH&RPPLVVLRQ Description of Drilling Fluid System :LQGRZPLOOLQJRSHUDWLRQV:DWHU%DVHG3RZHU9LVPLOOLQJIOXLGSSJ 'ULOOLQJRSHUDWLRQV:DWHUEDVHG3RZHU9LVPXGSSJThis mud weight will not hydrostatically overbalance the reservoir pressure, overbalanced conditions will be maintained using MPD practices described below. &RPSOHWLRQRSHUDWLRQV7KHZHOOZLOOEHORDGHGZLWKaSSJ3RWDVVLXP)RUPDWHFRPSOHWLRQIOXLGWR SURYLGHIRUPDWLRQRYHUEDODQFHDQGZHOOERUHVWDELOLW\ZKLOHUXQQLQJFRPSOHWLRQV Managed Pressure Drilling Practice 0DQDJHGSUHVVXUHGULOOLQJ03'WHFKQLTXHVZLOOEHHPSOR\HGWRPDLQWDLQDFRQVWDQWRYHUEDODQFHGSUHVVXUHRQ WKHRSHQKROHIRUPDWLRQDQGSURPRWHZHOOERUHVWDELOLW\WKURXJKRXWWKHFRLOHGWXELQJGULOOLQJ&7'SURFHVV0XG ZHLJKWLVQRWLQPDQ\FDVHVWKHSULPDU\ZHOOFRQWUROEDUULHU7KLVLVVDWLVILHGZLWKWKHSVLUDWHGFRLOHG WXELQJSDFNRIIDQG03'FKRNH%23(HTXLSPHQWSURYLGHVWKHVHFRQGDU\ZHOOFRQWURODVGHWDLOHGLQVHFWLRQ ³%ORZRXW3UHYHQWLRQ(TXLSPHQW,QIRUPDWLRQ´ ,QWKH*/ */ODWHUDOVRSHUDWLRQVZLOOWDUJHWDFRQVWDQW%+3RIaSSJ(0:DWWKHZLQGRZ 7KHFRQVWDQW%+3WDUJHWZLOOEHDGMXVWHGWKURXJKFKRNHSUHVVXUHDQGRUPXGZHLJKWLQFUHDVHVWRPDLQWDLQ RYHUEDODQFHGFRQGLWLRQVLILQFUHDVHGUHVHUYRLUSUHVVXUHLVHQFRXQWHUHG$GGLWLRQDOFKRNHSUHVVXUHRULQFUHDVHG PXGZHLJKWPD\DOVREHHPSOR\HGIRULPSURYHGERUHKROHVWDELOLW\$Q\FKDQJHRIFLUFXODWLQJIULFWLRQSUHVVXUH 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all waste to approved disposal wells24Adequate tankage or reserve pitNA25If a re-drill, has a 10-403 for abandonment been approvedYesAnti-collision analysis complete26Adequate wellbore separation proposedNA27If diverter required, does it meet regulationsYesMax formation pressure is 4530 psig(~15 ppg EMW); will drill w/ 8.6 ppg EMW and maintaing overbal w/ MPD28Drilling fluid program schematic & equip list adequateYes29BOPEs, do they meet regulationYesMPSP is 3949 psig; will test BOPs to 4500 psig30BOPE press rating appropriate; test to (put psig in comments)Yes31Choke manifold complies w/API RP-53 (May 84)Yes32Work will occur without operation shutdownYesH2S measures required33Is presence of H2S gas probableNA34Mechanical condition of wells within AOR verified (For service well only)NoPrimary wellbore KRU 3G-02 measured 110 ppm H2S on 11/26/2020.35Permit can be issued w/o hydrogen sulfide measuresYesExpected reservoir pressure is 12.3 ppg, with some potential of higher pressure due to gas36Data presented on potential overpressure zonesNAinjection within this area. Well will be drilled using 8.6 ppg mud, a coiled-tubing rig, and37Seismic analysis of shallow gas zonesNAmanaged pressure drilling technique to control formation pressures and stabilize shale sections by38Seabed condition survey (if off-shore)NAmaintaining a constant bottom-hole pressure of about 12.3 ppg EMW.39Contact name/phone for weekly progress reports [exploratory only]ApprSFDDate2/14/2022ApprVTLDate2/15/2022ApprSFDDate2/14/2022AdministrationEngineeringGeologyGeologic Commissioner:Date:Engineering Commissioner:DatePublic CommissionerDate-03JLC 2/15/2022