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Home My WebLink About203-068From:Franger, James M (DNR) To:AOGCC Reporting (CED sponsored); Roby, David S (OGC) Cc:Menefee, Wyn (DNR); Eden, Karsten (DNR) Subject:Well Site Clearance- Long Lake Nos. 1 and 2 Wells Date:Wednesday, September 18, 2019 4:08:38 PM RE: Docket Number OTH-19-028 Well Site Clearance- Long Lake No. 1 (Permit to Drill 203-068) and Long Lake No. 2 (Permit to Drill 206-061) This is in response to the letter dated August 21, 2019 from the AOGCC regarding the condition of Trust land at the above referenced drill sites. These sites do not contain improvements and were left in a condition acceptable to the Trust Land Office. Mike Franger Senior Resource Manager Trust Land Office mike.franger@alaska.gov 907-269-8657 TI IF STATE GOVERNOR MICHAEL J. PUNLEAW August 21, 2019 Mr. Wyn Menefee Executive Director Mental Health Trust Land Office 2600 Cordova Street, Suite 100 Anchorage, AK 99503 Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov RE: Docket Number OTH-19-028 Well Site Clearance — Long Lake No. 1 (Permit to Drill 203-068) and Long Lake No. 2 (Permit to Drill 206-061) Dear Mr.Menefee: In September and October 2005, Aurora Gas, LLC (Aurora) drilled the Long Lake No. 1 exploratory well on Mental Health Trust Land Office (MHT) private property (MHT lease no. 9300023). Aurora plugged and abandoned the well in accordance with the Alaska Oil and Gas Conservation Commission's (AOGCC) regulations, and the plugging operations were verified by an AOGCC field inspector on August 9, 2009 with supplemental information from operator - supplied well abandonment photographs. In July 2006, Aurora drilled the Long Lake No. 2 exploratory well on that same lease. Aurora plugged and abandoned the well in accordance with AOGCC regulations, and the plugging operations were verified by an AOGCC field inspector on September 14, 2006. However, AOGCC regulations require that Aurora conduct site clearance work and successfully pass site clearance inspections. Specifically, the relevant regulations state: 20 AAC 25.170(a) At or after the time that a well drilled onshore is abandoned and before the earlier of one year after the well abandonment or the expiration of the owner's' rights to the property, (1) The operator shall remove the wellhead equipment and casing to a depth at least three feet below original ground level and install a well abandonment marker in accordance with 20 AAC 25.120; and (2) Unless the operator demonstrates to the commission that the surface owner has authorized a different disposition to facilitate a genuine beneficial use, the operator shall ' In this instance "owner" refers to the operators (Aurora), not to the landowner (MHT). Page 2 of 2 a. Remove all materials, materials, supplies, structures, and installations from the location; b. Remove all loose debris from the location; c. Fill and grade all pits or close them in another manner approved by the commission as adequate to protect public health and safety; and d. Leave the location in a clean and graded condition. Aurora reportedly completed most of the activities required under part (1) of this regulation by removing the wellhead, cutting the casing off below ground, and installing a marker plate, but Aurora never arranged for the AOGCC to conduct site clearance inspections before filing for bankruptcy. AOGCC does not know if Aurora complied with requirements (2)(a) to (2)(d), above, or if Aurora otherwise left the well locations in a condition that is acceptable to MHT. Please send a letter or an email to the AOGCC (to the letterhead address or to AOGCC.Reporting_galaska.gov) describing the condition of the well sites and advising as to whether or not Aurora left MHT's property in a manner that is acceptable after plugging and abandoning Long Lake No. 1 and Long Lake No. 2. If you have any questions, please feel free to contact Dave Roby of our staff at 907-793-1232 or dave.roby@alaska.gov. Sincerely, Daniel T. Se mount, Jr. Commissioner cc: Mr. Mike Franger, MHT Jessi3 L. Chmielowski C6afmissioner Colombie, Jody J (CED) From: Roby, David S (CED) Sent: Tuesday, September 24, 2019 9:25 AM To: Colombie, Jody 1 (CED); Regg, James B (CED) Subject: Fw: Well Site Clearance- Long Lake Nos. 1 and 2 Wells FYI From: Franger, James M (DNR) <mike.franger@alaska.gov> Sent: Wednesday, September 18, 2019 4:08 PM To: AOGCC Reporting (CED sponsored) <aogcc.reporting@alaska.gov>; Roby, David S (CED) <dave.roby@alaska.gov> Cc: Menefee, Wyn (DNR) <wyn.menefee@alaska.gov>; Eden, Karsten (DNR) <karsten.eden@alaska.gov> Subject: Well Site Clearance- Long Lake Nos. 1 and 2 Wells RE: Docket Number OTH-19-028 Well Site Clearance- Long Lake No. 1 (.ermit to Drill -203-069) and Long Lake No. 2 (Permit to Drill 206-061) This is in response to the letter dated August 21, 2019 from the AOGCC regarding the condition of Trust land at the above referenced drill sites. These sites do not contain improvements and were left in a condition acceptable to the Trust Land Office. Mike Franger Senior Resource Manager Trust Land Office mike.franeera.alaska.eov 907-269-8657 • Aurora Gas PLC f~"'~ www.aurorapower.com ~G~GI V G~ JAN 2 ~ 2Q10 January 24, 20 i 0 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 West 7"' Ave., Suite 100 Anchorage, Alaska 99501 Attn: Mr. Steve McMains Afosk~w ~~ $ 6ss Cotta. Commission Anchato~a Re: Long Lake No. 1(203-068) Final Abandonment Dear Mr. Seamount: Aurora Gas, LLC ("Aurora") hereby notifies the Alaska Oil and Gas Conservation Commission ("AOGCC") of final abandonment the Long Lake #1 well , PTD No. 203-068 (API 50-283-20039AO). This well was plugged and suspended in September of 2004, Aurora has completed the final abandonment of this well. Attached is the AOGCC Form 10-407 and a summary of the abandonment and site clearance operations. I have also attached the previous 10-407 procedure and well diagram detailing the plugging procedure for your convenience. The well casing was cut-off on July 3, 2009 to a depth of flue-feet (5') below the surface and the abandonment marker was welded on. Photos of the abandonment marker are also included. ~f you have any questions or require additional information, please contact the undersigned or Chad Helgeson at 277-1003. Thank you for your time and consideration. Sincerely, Bruce D. Webb Manager, Land and Regulatory Affairs Attachments 1400 West Benson Bivd., Suite 410 • Anchorage, AK 99503 • (907) 277-1003 • Fax: (907) 277-1006 8051 North Course Drive, Suite 200 • Houston, TX 77072 • (713) 977-5799 • Fax: (713) 977-1347 RECE~v~~ Z0 0 • STATE OF ALASKA • f A ~ ~ ~ ~ ~ ~ Q ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPOR7~~ ~I 1a. Well Status: pil ^ Gas ^ SPLUG ^ Plugged Q Abandoned ~ Suspended^ zonacz5.~os 2onnczs.~~o GINJ ^ WINJ ^ WAG ^ WDSPL ^ Other ^ No. of Completions: ~ 1b. Well Class: Development ^ Exploratory Q Service ^ S#ratigraphic Test ^ 2. Operator Name: Aurora Gas, LLC 5. Date Comp., Susp., or Aband.: August 27, 2009 12. Permit to Drill Number: 203-068 3. Address: 1400 West Benson Blvd, Suite 410 Anchorage, AK. 99503 6. Date Spudded: July 29, 2004 13. API Number: 50-283-20039-90 4a. Location of Well {Governmental Section): Surface: 1,073' FNL, 402' FEL, Sec 32, T12N, R12W, SM 7. Date TD Reached: July 31, 2004 14. Well Name and Number: Lang Lake #1 Top of Productive Horizon: n.a. 8. KB Elevation (ft): 524' AMSL (DF) 15. Field/Pool(s): Total Depth: 1,073' FNL, 402' FEL, Sec 32, 712N, R12W, SM 9. Plug Back Depth(MD+TVD): plug ~ -5' MD/TVD Moquawkie Undefined Gas Pool 4b. Location of Well (State Base Plane Coordinates): NAD 27 Surfaces x- 246714 y- 2590606 Zone- 4 10. Total pepth (MD + TVD): MD 11,097' / ND 11,065' 16. Property Designation: MHT 9300023 TPI: x- y- Zone- 4 Total Depth: x- 246714 y- 2590606 Zone- 4 11. Depth Where SSSV Set: wA 17. Land Use Permit: SOA Mental Health Trust lease 18. Directional Survey: Yes No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost MD/TVD: WA 21. Logs Obtained {List all logs here and submit electronic and printed information per 20AAC25.071): Schlumberger: DSI, FMI, MDT, CBL/CCL/GR (previously submitted). 22.Re-drilULateral Top Window MDlTVD: N/A 23. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING D EPTH ND HOLE SIZE CEMENTING RECORD AMT ~ TOP BOTTOM TOP BOTTOM PLD 30.00" 75.0# ST&C - 5' 45' - 5' 45' 36" 110 Sks, type G 0 16.00" 75.0# STB:C - 5' 364' - 5' 364' 22" 557 sks, type G 0 10.75" 40.5# K-S5 - 5' 3,052' - 5' 3,052' 12-1/4" 2,111 sks, typeG 0 7.00" 23.0# J-55 2,830' , 2,830' 3,372' 9-7/8" 42.2 bbls, type G 0 24. Open to production or injection? Yes ^ No ^ µi4 Yes, list each 25. TUBING RECORD interval open (MD+TVD of Top i;< Bottom; Perforation Size and Number): SIZE DEPTH 5ET (MD) PACKER SET (MD/TVD) 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. None: All perforatated intervals properly plugged and DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED abandoned during prior P8A procedure. 27. PRODUCTION TEST Date First Production: none Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oit Gravity -API (corn): 28. CORE DATA Conventional Core(s) Acquired? Yes ^ No Q Sidewall Cores Acquired? Yes ^ No Q If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, rf needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. Nasores taken. RBDMS ' JAN 2 710' c~~ tsian Form 10-407 Revised 712009 CONTINUED ON REVERSE Submit original Only G • • 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD ND Well tested? Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if needed, and submit detailed test information per 20 AAC 25.071. 6/26/05: Formation Integrity Test (FIT). 17.0 ppg @ 240 psi surface pressure with 9.8 ppg drilling mud; no leak off. 30. List of Attachments: Daily Operation Summary, Well Schematic, Abandonment Marker photos, and prior 10-407 dated 01/10/2005. 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Aurora Gas, LLC Printed Name: Bruce D. Webb Title: Manager, Land and Regulatory Affairs ~ ) ~ Signature: ,~c.~ "~.e~- Phone: (907) 277-1003 Date: 1/24/2010 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and ND for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain), Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 7/2009 original RKIi 544' Original GL 524' Cement Plug from surface to 180' BGL. Poor Boy plug set at 180'. Casing head still intact. • ~ba~.dol~d. vJ~~- Long Lake No.1 ry~s~ea~ded Status G u'~' c:F i< 5t $G~w !>i~~t~LC.u~ 7f 3ia9 •~ } q .'~`° ~ .:~~`}_a~~} -ail ~, jR ~:. iA~~ ~Y„~}., ~T., `~ ,x - '~~' -'` f ;~ ~,4~~}' ''~ `~ 3ti" Structural Conductor set ,_~'. .. F, - ~ 4 ' a at 45', Cmtd w/ 110 Sks "G" } ,~ Drilled 22" hole ~ Cement Plug Tagged TOC pQ 2088' Piug displaced from .',088' - 2160' above IO %" C1BP (8 bbls "G") Top Tyoaek ~ 880' Tagged TOC at 2695' -,-..may Set 7" Retainer aQ 2953' Squeezed 13 bbls "G" below , displaced 27 bbls "G" above West Perforations: Squeezed Off S shots per ! it. 3130' - 3150' 3158' - 3188' 321$'- 3278' x', ~~. "r~ ~ ?`~ ' Tested to 1000 psi, after ;:s::w_ ~;;~,.i settingEZSV & cement '~r`~''~~ plug 16" 75# J-SS ST&C Set at 364' and Cmtd wl 557 Sks "G" ]0 V." 45.5# K-SS Surface-1400' ? 10'/.° 4Q.5# K-551400' - 2500' 4 IO'/." 455# K-5,S 2500' - 3052' ? 103/." EZSV at 2160' Test Perforations: 2208' --2238' 2274' - 2294' Test Perforations: 2742' - 2752' 2166' -2786' Squeezed oN 10'/." 40S & d5.5# K-SS Csg set at 3052' MD. Cmtd w/ 2111 Sks "G" and goad returns indicated at surface. 7" C1BP set at 3314' open Perforations: 3322' -3340' Cement Plug Placed 3470' 3550' X 00 Sk "G" Cmt Plug 4867' -- 4653' 50 S k "G" Cmt Plug 5478' - 537I' SO Sk "G" Cmt Plug 6767' -6660' 92 Sk'~G" Cmt Plug 9916' - 9705' 7" 23# J SS liner hung from 2830' -3468' and cemented into place. Attachment I TD 9 7/8" hole at 11097' I4ID (1]065' TVD) Fairweather E&P Services, Inc. Lon Lake No. ~, Rev. 3.0 09/2!2004 dhv Drawin Nat to Scale Aurora Gas, LLC l~ AURORA GAS, LLC LONG LAKE NO. 1 (AOGCC PERMIT No. 203-068) (API No. 50-283-20039-90) WELL CLOSURE OPERATION SUMMARY 7/3/09 -Cleaned up pad, remove well cellar, cut off casing flange, weld cap with well marker on it. Photograph well marker, well marker labeled "Aurora Gas LLC, Long Lake #1, PTD # 203-068, API# OS-283-20039-90." 8/27/09 - Backfilled well marker (Sft below grade) and straightened up the pad with loader 10/15/09 -Site visit by Landowner Representative (Mike Franger -Mental Health Trust) 10/26/09 -Final Clearing/grading of pad with dozer by Tyonek contractors, filled in all holes, tracks from loader, etc. Chad Helgeson (1/8/10) .. AURORA GAS, LLC. Long Lake #1 Well Abandonment Photographs July 3, 2009 ~~~~ ~ ~~'`~". Long Lake #1, Grouted Top of Casing ..~ :`_:`~. ~~ t ~'r ~" _, a I ,~ .~ "4 `~n. 1 `~ ~ !~';~.. ` ~'~!' •`a ~.. it W Long Lake # 1, Well Abandonment Marker ~~-' ~' ,~ ~. ~ x ,;, ti q,.~ ~ tfk Long Lake #l, Steel Identification Plate „, ,y$T', 'A, r ~ A dY... 7 2:? ~ i Long Lake #I, Well Abandonment Marker • • MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg ~ DATE: Aug 9, 2009 P. I. Supervisor `~~ I ~~ ~Z~ FROM: Bob Noble SUBJECT: Surface P&A Petroleum Inspector Long Lake #1 Aurora Gas, LLC PTD 203-068 ~" , firy~ ~ , . ~ ., ~ ~~~_ Auq 9, 2009: After completing a BOP test for AWS, Aurora Rep. Jon West requested that I inspect a surFace P&A that Aurora Gas had in progress. Aurora's Rep. John Salario and I traveled over to the Long Lake #1 location to inspect the cut-off. On arrival to location I noticed that the marker plate had been welded onto the casing. I was unable to verify that they had all string of the pipe full of hard cement. I did verify that Long Lake #1 cut-off was approximately 4 feet below grade line. It had the proper markings on the marker plate and the maker plate was the proper size. Attachments: photo of Long Lake #1 Marker Plate ~e. - ~l~,s ~; ~ c~~ ~ ~~,~~- Sti~w c~~~„~- ~= ~L~. r Fit ce ; ~e c~P~ ~~. • i Long Lake #1 Surface P8~A (Aurora Gas LLC) PTD 203-038 Photo by AOGCC Inspector Bob Noble August 9, 2009 • • ~ ~ "~ ~ ~ t ~ gf °°~ ~.~~ ~ ~ .~ ~~ ~ ~ ~ ~ ~~-~~ `+~~~ ~6 ~~~ ~q ~~~t ! Q~ p~ ` : ~~ t~~ ~ ~~u ~ ~~ f ~ " ~ ~ ~ ~ ~ ' ~ ~ ~ ~ SARAH PALIN, GOVERNOR ~~~ ~~ ~ ~ ~ ~,~ ~.~ ~_~ ~ ~ ~ ~ ~S~A Da~t !u`D 1~~7 ~k 333 W. 7thAVENUE, SUITE 100 C01~5ER'QATI011T COMNIISSIOI~T ,~~ ANCHORAGE,AIASKA 99501-3539 ~ PHONE (907) 279-1433 ~ FAX (907) 276-7542 Mr. Bruce D. Webb, Manager, Land and Regulatory Affairs Aurora Gas, LLC 1400 W. Benson Blvd., Suite 410 ~~~~~~ ~~)~, ~; ~~00~ Anchorage, AK 99503 Re: Moquawl~e, Undefined Gas Pool, Long Lake # 1 Sundry Number: 309-238 ~ 3 ~~~ a Dear Mr. Webb: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Comnussion grants for good cause shown, a person affected by it may file with the Ccmmission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next worl~ng day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, Daniel T. SeGrr.ount, Jr. ~ Chair DATED this ~~ day of July, 2009 Encl. ,~~,o~ .'~,~~C 0 ~ ~ STATE OF ALASKA '~'~~ ALAS~OIL AND GAS CONSERVATION COMMI ION ~ECEIVE ~~ JUL .1 3 2~~'~~t`~l~oog APPLICATION FOR SUNDRY APPROVAL$~~aska Oii & Gas Cons. Commission 20 AAC 25280 Anrhnror~n 1. Type of Request: Abandon Q Suspend ^ Ope~ational shutdown ^ Pertorate ^ Waiver Other ^ Alter casing ^ Repair tive!! ^ Plug Perforafions ^ Stimulate ^ Time F~ctension ^ Change approved pragram ^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ 2. Operator Name: 4. Current Well Class: S. Permit to Drill Number: ~~, ~,C~ ~ AURORA GAS LLC Development ~ Exploratory ~ 6$' -~ ;3,0 3. Arldress: Stratigraphic ~ Service ~ 6. API Number: 1400 W. Benson Bivd., Suite 410, Anchorage, AK 99503 50-283-20039-90 7. If pertorating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: . . _ property line where ownership or landownership changes: " Y Spacing Exception Required? Yes ^ No ~ `" LOt1 ~ Lake #1 9 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): ~~m ~~~ c~.: r~ l~tc~~ r~~ ~~r ~ MHT #9300023 524' AMSL (DF) ' ' " ' ' "as-riei~- 7. ~~• 12~ PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Totat Depth TVD (ft): , Effective Depth MD (ft): Effective Depth TVD (ff): Plugs (measured): Junk {measured): ~'7'~~~~~~7 i / ~$ ~,27b~ ' 4 ' ~f , 4~ L5 695' Surface 2 2 088' none ~ ~ , 3r. . G D.1 . ~_ ~ ~ , , , , ~ Casing Length Size MD ND Burst Coilapse Structural 45' 36" 45' 45' Conductor 364' 16" 364' 364' 2,630 psi 1,020 psi Surtace 3,052' 10-3/4" 3,Ofi2' 3,052' 3,5$0 psi 2,090 psi Intermediate 542~ 7^ ~,3~'L"~c~4~ 3,372' 4,360 psi 3,270 psi Production Liner Pertoration Depth MD (ft): Pertoration Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): none none none none none Packers and SSSV Type: none Packers and SSSV MQ (ft): none none none 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed wo~k: Detailed Operations Program ^ BOP Sketch ^ Exploratory Q Development ^ Service ^ 15. Estimated Date for 16. Well Status after proposed work: Commencin o erations: August 1, 2009 g p Oil ^ Gas ~ Plugged Q Abandoned Q 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact J, Edward Jones (713) 977-5799 Printed Name Bruce D. Webb, Manager, Land and Regulatory Affairs Title Vice President, Engineering and Oper. Signature ~..~ ~;,~;~^J„~,. Date July 13, 2009 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ~ Other: 5ubsequent Form Required: ~ o '- Cf ~7 . APPROVED BY / ~ ~] ~ ~ Approved by: COMMISSIONER THE COMMISSION Date: 7 ~ ~ ~ O R ! G ! N A !. ~ ~ ~ ~-~ ~~~ ~ ~ ~~a~ ~ 7. ~~ ~. ~ ~ Form 10-403 Revised 06/2006 ubmit in Duplicate • • ~--Aunora Gas L L C ~ ~"j www.aurorapower.com ~ July 13, 2Q09 Mr. Dan Seamount, Chair Alaska Oil and Gas Conservation Commission 333 V~Jest 7`~' Ave., Suite 104 Anchorage, Alaska 995Q1 Attn: Mr. Winton Aubert ~~~~~V~~ J~i~, ~ ~ 2~09 A~a~ka ~lii ~ C~~~ ~pnS. Cc~mmissian {lnrahary~qA Re: Request for Sundry Approval: Lang Lake No. l(203-268) Fina1 Abandnnment Procedure and Site Clearance Dear Mr. Seamount: Aurora Gas, LLC (" ra") hereby reyuests a Sundry Approval for the Long Lake # 1 well , FTD No. 20 -26 (API 50-283-20039-90). This well was piugged and suspended in September of 2004. urora has decided to finalize the abandonment of this well and revise its status from suspended to abandoned. Attached is the AOGCC Form 10-403 and a summary of the abandonment and site clearance procedure. I have also attached the previous 10-407 procedure and we11 diagram detailing the plugging procedure for your convenience. The well casing was cut-off on July 3, ~409 to a minimum of three-feet (3') below the surface and the abandonment marker was welded on. ~ Photos of the top cement grouting and abandonment marker ate also included. Aurora seeks your approval to f tl-in the cellar ~cavation and esta.blish final grade at the site. If you have any questions ar require additional information, please contact the undersigned or Chad Helgeson at 277-1003. Thank you for your time and consideration. Sincerely, , ~~ ~~-.-~~ Bruce D. Webb Manager, Land and Regulatory Affairs Attachments: AOGCC Form 10-403 Application for Sundry Approval Long Lake #1 approved Plugging and Suspension Procedure Current Well Diagram Long Lake # 1 Final Abandonment Procedure Site Photos (4) 1400 West Benson B/vd., Suite 410 . Anchorage, AK 99503 •(907) 277-1003 • Fax: (907) 277-1006 6051 North Course Drive, Suite 200 • Houston, TX 77072 .(7i3) 977-5T99 • Fax; (713) 977-1347 '` • • AURORA GAS, LLC. Long Lake #1 Abandonment Procedure Nate: Inform AOGCC inspector of plans ta abandon well in order to give inspector ample opportunity to inspect the marker plate and witness the burial and permanent abandonmen#. Current Well Condition Long Lake #1 was plugged back at the following depths, in accordance of the approved plugging and suspension, as reported on Form IO-407 dated January 10, 2005: Surface to 180' MD/TVD r 2,088' - 2' 160' MD/TVD 2,6~5" - 3,314' MD/TVD 3,470' - 3,550' MD/T'VD VVellhead Abandonment and Well Marker N/D wellhead and send in to vendor for servicing for re-use. Excavate around cellar. Remave cellar and cut off all casing strings at least 3' below ground level. Check 10-3/4" and 16" casing and outer annuli for cement ta surface. Top off any voids with cement. Weld on marker plate as follows: Plate to be 1/4" steel cut in a circle measuring 18" in diameter with the following information bead welded to one side: Aurora Gas, LLC Long Lake # 1 PTD # 203-268 API # 50-283-20039-90 Place the plate, wording side up, over the cut-ff casing subs and weld to the outer casing string. COMPLETED July 3, 2009 Wait for AOGCC inspection/authorization of abandonment marker. Fill in excavation, including casing stubs w/ marker plate, level pad and clean up all debris after all equipment has been demobilized. Obtain site clearance from AOGCC and file 10-407. Bruce Webb (7/13/09) • ~ AURORA GAS, LLC. Long Lake #1 Well Abandonment Photographs July 3, 2009 ~ ~ ~+ . ~. _~ ~ • J~ ~ ~ ~ ~..~~i~r; . .. -..'T'~ ~,i~ ~'C•~: ~,... { ~ .'_, ~.. . r; ~ .I~ S''~a Long Lake #1, Grouted Top of Casing ~~~'~,wf ` 4 ~ ~~ ` ~ .+'~' • ~."~ ~_h .r.. Aa , . ~t:. `.,i ~~~~'y" ~~' ~ 1 ~ r' a ~ ~! ~ '~t~ ' ' .' ~ .. M, v"ti ~ , .~ \' .: 1~ijJl ~ y ~ 7~ ~i, ~ {ya..•, 4 ~~ ., ~;'~,,, , ~ti ~ 4 ; Long Lake #1, Well Abandonment Marker i~. y ~ ,..1: ~ ; ,.. . ,~F . r.~. -{y;:l Long Lake #1, Steel Identification Plate ., ~ '~<~; ~ ~ ~~ ~ a, A4. ' ~~~.~,)..: .. ~. . ,~'~~~ ~~ , ~ • t R~( -. ~Q r~ ~. ~.a~~~ . ~ y~ l '~~~ . f ~`'t a,, . ;y + ~"~ w~,.::~, Long Lake #l, Well Abandonment Marker ;.z~ ~.~ Long Lake No. 1 Suspended Status Original RKB 544' Original GL 524' _ - ~, ~s. , v' ;•~~' ,,~~''R`° ~ ~~ ~~*::,x~~~ ~}: ~~ y ~5 ~ ', ~~;s 4 ~ , `'~ { '~" t~`="° 36" Structural Conductor set Cement Plug from surface u' , r~ ~~ 4 ¢ r at 45', Cmtd w/ 110 Sks "G" to 180' BGL. Poor Boy ~, .~:. 3•' ;~ ; plug set at 180'. Casing ~ ~~ - y~: , T ~ head still intact. ~ ~~ ` #". P_' ' Tested to 1000 psi. after } , ,~^~~„ ~` ~;~r ; ,~a,~,~,~z setting EZSV & cement '~ ¢ ~ :~: t ~, f~t ` P~~g Drilied 22" Hole . #4~ ~:~ ~~ ; t~ru ~! g r ~ ._ ~`~ ~" ~~~`~:'. - ~'~ " ~ ~ ~ }~ " s ~ * ;` 16 75# J-55 ST&C Set at 364' and Cement Plug Tagged TOC @ 2088' ~¢' %~' ';,,' Cmtd w/ 557 Sks °°G" Plug displaced from 2088' - 2164' ' F~'A -". above 10'/<" CIBP (8 bbis "G") ~:r a:< . r` 10'/<" 45.5# K-55 Surface -1400' ? '~ ;~ i'- 10 '/<" 40.5# K-55 1400' - 2500' ? Ra~.°a: -:~~; ~.-;;: 10'/<" 45.5# K-55 2500' - 3052' ? `~~" ~'' k "~~ ,',~ •' t~, ~ ' ~ ° _ ~' .° _~ 10'/<" EZSV at 2160' Top Tyonek ~ 880' `y'~ ~. ~'~ ; , . Test Perforations: 2208' - 2238' > ~..: , p .: 2274' - 2294' r:'~ ~ : ~ . ,._ Tagged TOC at 2695' ~ ,* }'; k, ~. ~ ~ ~k ~ ~,~~'~' ~,~ '~' ~ 1 3 T'est Perforations: 2742' - 2752' t ' , '~ ~`"~*'~' 2766' - 2786' s' fi ~'`` ~ ,~ w ~ ~ , ~: ~ m ~ ~ , , Squeezed off " ' ~ ~ ~ ~~ ~'~ " P Set 7 Retainer @ 2953 ' ~~ + ~ ~ : ~ Squeezed 13 bbls "G" below, ~'°*; {~p ~ : " ~ '` ~ ~ 10'/<" 40.5 & 45.5# K-55 Csg set displaced 27 bbls °°G" above ~"» ~' ~ t~~`' A " at 3052' MD. Cmtd w/ 2i 1 I Sks +• • ~~ ~ " " + ¢ G and good returns indicated '~ ~~~` e , at surface. Test Perforations: Squeezed Off @~ ~ ~e . ~ ' 5 shots per / ft. 3130' -3150' ~ ~ ~~ .:: ~i <~_ 3158' - 3188' ~ ~~`° ~' `" ' ~ ~~: ' ~ ~ `p 3218' - 3278' , ' - ' , _ 7" CIBP set at 3314' Open Perforations: 3322' - 3340' t., ~ .f ~ 7" 23# J-SS liner hung from ~2830' 346 ~, ' , and cemented into place. Cement Plug Placed 3470' 3550' ~~ ~z ~~:' ~ a 100 Sk "G" Cmt Plug 486T - 4653' ,~ .. 50 Sk °~G" Cmt Plug 5478' - 5371~ Attachment I 50 Sk "G" Cmt Plug 6767' - 6660' 92 Sk °°G" Cmt Plug 9916' - 9705' ~ I TD 9 7/8" hole at 11097' vID (11065' TVD) ._I Fairweather E&P Services, Inc. Lon Lake No. 1, Rev. 3.0 09/2/2004 dhv Drawin Notto Scale Aurora Gas, LLC Page 9 of 9 • ~ .~_ ~__ 11 • t 03~o~~zoos DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE F:\LaserFiche\CvrPgs_InsertslMicrofilm Marker.doc )d- W- DATA SUBMITTAL COMPLIANCE REPORT 9/11/2006 Permit to Drill 2030680 Well Name/No. LONG LK 1 Operator AURORA GAS LLC API No. 50-283-20039-90-00 MD 3550 Completion Status SUSP UIC N TVD 3550 Completion Date 8/25/2004 Current Status SUSP -- -~._-^ REQUIRED INFORMATION Mud Log No Samples No Directional Survey No -~ --~- ^-~--- DATA INFORMATION Types Electric or Other Logs Run: DSI, FMI & MDT - 7/7/04 CBLlCCLlGR - 7/12/04 Well Log Information: (data taken from Logs Portion of Master Well Data Maint Log/ Electr Data Digital Dataset Log Log Run Interval OH/ Z Med/Frmt Number Name Scale Media No Start Stop CH Received Comments -- PHOTO DENSITY, DUALÎ . og Neutron 5 Blu 1 1990 3542 12/6/2004 ] SPACED NEUTRON Cement Evaluation Blu 2850 3361 Case 12/6/2004 .SLlM CEMENT MAPPING I I Log 5 I TOOL. SCMT-BB/PBMS-A I )-og Reservoir Saturation 5 Blu 800 3362 12/6/2004 RST-C/PBMS-A I ¿'Og Perforation 5 Blu 2100 2865 12/6/2004 PERFORATION I RECORD/4.5" HSD SPF J 4505 PJ HMX CHARGES --,-~--- Well Cores/Samples Information: Sample Interval Set Name Start Stop Sent Received Number Comments ADDITIONAL INFORMATION Well Cored? Y ® Chips Received? ~ Analysis y'rf;(- Received? ~/N Y @ 1\tJL'^-"~ì Daily History Received? ~t.'" I'Tb - (1)... ~~C( Formation Tops ~._~ ------------- -~-~-~- ~._--_._.-- --~~ Comments: comPI~ance Reviewed ~~~ ~- Date: Jtt~ - . [Fwd: [Fwd: rptWellDetailsList.xls]] . . Steve, I have looked into the Simpco Moquawkie #1 (178~047). Based on the surface location, this well appears to need a spacing exception since it is 424' N of the section line. It is more than 1500' away from the other wells located to south in section 1. I have looked at the order files and did not find anything regarding a spacing exception when the well was originally drilled. The need for a spacing exception for this well is probably not urgent since the well is SI. When Aurora conducted some testing in 2004 the results were not favorable. It is possible that Aurora may look to "do something" with the well, but no definite plans have been submitted. This only leaves the Long Lake #1 to look at. Tom ,;1.0] - 0 c. r -------- Original Message -------- Subject: [Fwd: rptWeIIDetailsList.xls] Date: Mon, 27 Feb 2006 16:17:21 -0900 From: Thomas Maunder <tom maunder@admi.n.state.ak.us> Organization: State of Alaska To: Steve Davies <steve davi.es@admi.n.state.ak.us> Steve, Further to my earlier message on spacing and Aurora wells on the west side. I have done some file research and determined the following: 1. It appears that all spacing is in order at Moquawkie. Wells are "close", however production is from separate intervals in all 3 wells. 2. It appears that all spacing is in order at Nicolai Creek. is that a 407 was never filed for "abandoning" NCU lA when NCU have sent a message to Ed Jones and Jesse Morebacher regarding Only item discovered IB was drilled. I a completion report. 3. Lone Creek #1 may need a spacing exception. A spacing exception was issued (C0425) to allow the well to be originally drilled, however it was for an oil well. The well is located on 200' from the section line. I cannot find where an exception for a gas location has been issued. An exception (C0557) for Lone Creek #3 which is in the same section was issued last August. There are a couple of other Aurora wells that I still need to check. Look forward to your thoughts/assessment. Tom -------- Original Message -------- Subject: rptWellDetailsList.xls Date: Mon, 20 Feb 2006 13:51:34 -0900 From: Thomas Maunder <tom maunder@admin.state.ak.us> Organization: State of Alaska To: Steve Davies <steve davies@admin.state.ak.us> Steve, I did some looking at Aurora's wells on the west side. Some of them do have spacing exceptions. I did put some notes in adjacent to some of the wells. Hope this helps. I should be in tomorrow. I have finished my first day and am now at the office. I don't feel too bad, so we'll see how it goes. Tom lof2 2/28/2006 10: 10 AM [Fwd: [Fwd: rptWellDetailsList.xls]] . . Content-Type: application/msexcel rptWellDetailsList.xls Content-Encoding: base64 20f2 2/28/2006 10: lOAM Suñace Location Text63 Operator API NO AURORA GAS LLC Text68 WELL NS EW S T TD R RD Q2 Field Name TY ST ~-~ Spacing Done Spacing Needed?? - --- 50-283-20111-00-0 205-080-0 MOQUA WKIE 3 2159N 1728E 1 11 N 50-283-20062-00-0 178-088-0 SIMPCO MOQUA wKTEI 785S 204::t 1 11 N 12 W S 12 W S MOQUA WKIE DEV I-GAS EXP I-GAS - -;1 s\....o..\\o.~C<,- '>I.t\,ù..~~ <,.c\~,,> I _ f~=~tQ<oCo 5 ö~ 785 FSL 5~.~O 5,C{. Cù ~ -~¥> ~~~ \0 (,;,) - J<? '\0 'ì~~ o~" : -- - - -t ---~- 1 - <7 *Exploratory ~ J 12336N Is I MOQUAWKIE ~<è.N~~CV 0''- 50-283-10019-90-0C 203-069-0 MOQUA WKIE 1 1704E l11N 12 W DEV I-GAS I p I 165-012-0~ -l. 50-283-10019-00-0C ..13'36 N nu4:& II N 12 W S MOQUA WKIE DEV P&A C017 I P&A ~ - I --- ~-20036-90-0C J I I SER~ -~~- -I- 202-107-0 NiCOLAI CK UNIT 5 2183N 1622J1, 19L11IN 12 W 8 NIèõtAI CRPPK 201 11IN -~- f-- 50-283-20003-00-0C 167-007-0 NICOLAI CK UNIT 3 3369S 1668W 12 W S NICOLAI CREEK DEVil-GAS I - 50-283-20115-00-0C 205-131-0 KALOA 4 11146N 1732E 26 11 N 12 W S ALBERT KALOA EXP P&A 1146 FSL 1 - -~r ~-20 1 04-00-01203-071-0 I ALBERT~ g)(P I CANC./ I I I j KALOA ?XX 1 9&7N, IGG9bl26 l1[N 12 W 8 cancelled I 50-283-20058-00-00177-049-0 8IMPCO KALOA 1 12384N 1992E 26 11IN 12 W S *Exploratory EXP 81 I I ALBERTKALOA _IEXpII-GAS [ ~ .d 50-283-20107-00-00204-096-0 KALOA 2 1308N 1706E 26 11N 12 W S same section as Kaloa #1 I . \.)~ 5.Q;.283"zOlOI-00-OO2:02-194-0 NIÇOT AI CK ùNIT 8XX 2UIL~ ')49W 2911 N 12w ¡ß - -l'J!f'OT AI CREtl<. i-QEV CANC ,., - \.i '., 7 50-283-10020-01-00166-008-0 NICOLAI CK ST I-A 119998 186W 29111 N NICOLAI CREEK DEV SUSP \?, þ.¡ ~ ..... 12 W 8 .. ..\. .... 50-283-10020-~~~02-162-0 NICOLAI CK UNIT 1B 1999S1 186W 2~11~ 12 W 8 NICOLAI CREEK DEV I-GAS C0478A L =-~T 50-283-20102-00-0 202-208-0 NICOLAI CREEK 9 20108 261W 29 11 N 12 W 8 NICOLAI CREEK DEV I-GAS C0478A -+ [ 50-283-10021-00-00 166-038-~INICOLAI CK UNIT 2 19998 209W 29 11 N 12 W S NICOLAI CREEK DEV I-GAS C0478A 8 12 N 11..W 13 Lont:; í:REEK ID~V C:.ÁNC cancelled I 50~0103-0U-ùO:!0~-062-0 LONE ÇBPl]( 3XX I 56~'" ].76W - 1 - , I """~ Nt~~"" 50-283-20096-00-00 198-084-0 LONE CREEK 1 2008 1800E 18 12 N 11 W S LONE CREEK DEV I-GAS C0425 (oil) 200' FSL I 50-283-20112-00-0( 205-097-0 LONE CREEK 3 1578N 1367E 18 12 N llW S LONE CREEK DEV I-GAS CO 557 V 1367' FEL ~j 50-283-20039-90-0( 203-068-0 LONG LK 1 402E 12 S MOQUA WKIE 8USP - ~ 402' FEL I 1073S 32 N 12 W EXP \I\t\~~ ~ 50-283-20060-00-0( 178-047-0 SIMPCO MOQUA WKIE 424S 1261£ 36 12 N 12 W S *Exploratory EXP I-GAS I 424' FSL {J 50-283-20116-00-0( 205-143-0 THREE MILE CK UNIT 679N 273W 35 13 N llW S THREE MILE CREE DEV ¡-GAS, , CO 558 I 679' FNL, 273' FWL I 50-283-20 I 08-00-0( 204-183-0 THREE MILE CK UNIT I 1504N 148W 35 13 N II W S THREE MILE CREE DEV CO 558 148' FWL ] \ I I I-GAS I , ] , I '. r= t-- i---. C028 C067- ¡------- ~.:~:-.: ~ ..,,\\:~ ~C~, CO 122 IV.Lt____ _-I I \)\)"~ \1~~ \ \ ~ \~.~ .. \ \ l -e check 173.10, spacing exception for flaring?? see CO 210, 211 spacing exception to re-enter see C0450, 450A, 450B WF #1 see C0488, moose point re-entry see C0490, Beaver Creek #3 deepen I I some duplications in conservation order list . . . -,., ... - ~.- - ~ . ""I cot J?\t\l ~ _.....-t __ _-.... '-'r.A.II _ - II. E & P SERVICES, INC, January 10, 2005 Mr. John Norman, Chair Alaska Oil and Gas Conservation Commission 333 West ih Ave., Suite 100 Anchorage, Alaska 99501 Re: Report of Sundry Well Operations: Long Lake No.1 (PTD# 203-068) Dear Mr. Norman, On behalf of Aurora Gas, LLC, Fairweather E&P Services Inc. hereby submits the final well report which covers the current status of the Long Lake No.1 gas exploration well. Well re- entry, testing and plugging operations were completed on August 25th, 2004. Following approval of the Sundry application to P&A the well, Aurora plugged the well back to surface as required. Aurora did not however, perform the final task of cutting off the wellhead and installation of the abandonment marker. Aurora proposes at this time to reclassify the well as suspended while evaluating possible future utility for the wellbore, i.e. possibly sidetracking out and directionally drilling up dip on structure at a later date. / Pertinent information included under cover of this letter includes the following: 1) Form 10-407 "Well Completion or Recompletion Report & Log" - 2 copies. 2) Summary of daily well work and operations. 3) Diagram of current wellbore configuration wi plugs as placed. If you have any questions or require additional information; please contact the undersigned at (907)258-3446, or Mr. 1. Edward Jones, Executive Vice President of Engineering and Operations for Aurora Gas, LLC at (907)277-1003. Sincerely, ~!~;',e,] E&P, S ervi1es, Inc. I ") L'/' I " . G . c""""_,, ~ \ '~.,""'"'''''''''''''' ,''':'- Duane H. V aagen ....""....--~,~-,- · Project Engineer , att: cc: 1. Edward. Jones, Andy Clifford 2000 East 88th Avenue· Anchorage, Alaska 99507 . (907) 258-3446 · FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505· Houston, Texas 77060· (281) 445-5711 . FAX (281) 445-3388 · __ STATE OF ALASKA ALAS~ AND GAS CONSERVATION COMMIS. WELL COMPLETION OR RECOMPLETION REPORT AND LOG OilO GasU Plugged 0 AbandonedO 20AAC 25.105 1 a. Well Status: GINJ 0 WINJ 0 WDSPL 0 2. Operator Name: No. of Completions 1 Aurora Gas, LLC 1400 West Benson Blvd. Suite 410 Anchorage, AK 99503 4a. Locåtion of Well (Governmental Section): Surtace: 1073'F~L,402'FEL,S32,T12N,R12W,SM Top of Productive HorizonS Same 3. Address: Total Depth: Zone- 4 Zone- Zone- 21. Logs Run: 22. CASING WT. PER FT. 75 # 40.5# 23# ST&C K-55 J-55 GRADE 16" 10 3/4 7" 23. Pertorations open to Production (MD + TVD of Top and Bottom Interval, Size and Number; if none, state "none"): None: All pertorated intervals properly plugged during P&A procedure. P&A complete wI exception of wellhead removal and abandonment marker installment. See Attached Diagram. 26. Date First Production: Suspended [;] 20AAC 25.110 WAG 0 1b. Well Class: Development 0 Exploratory [;] Service 0 Stratigraphic Test 0 , 12. Permit to Drill Number: -21J32edØ06g0 13. API Number: 50-283-20039-90 14. Well Name and Number: Long Lake #1 Exporatoryl Re-Entry 15. Field/Pool(s): Other 5. Date Comp., Susp., or Aband.: Aug.25,2004 6. Date Spudded: July 29, 2004 - 7. Date TO Reached: July 31,2004 .- 8. KB Elevation (ft): 524 9. Plug Back Depth(MD+ TVD): o Long Lake Unit 10. Total Depth (MD + TVD): 16. Property Designation: ;w¡:r:r ~SS-t/ II1Þ/'I'¥b I~ -&>$.- MHT-9300023 11. Depth Where SSSV Set: 17. Land Use Permit: NIA 19. Water Depth, if Offshore: 20. Thickness of Permafrost: NIA feet MSL NIA 24. SIZE CEMENTING RECORD AMOUNT PULLED Same 4b. Location of Well (State Base Plane Coordinates): Surtace: x- 246714 y- 2590606 TPI: x- y- Total Depth: x- y- 18. Directional Survey: Yes [;] No 0 Single Shot Inc. Only Surveys Schlumberger Open Hole Logs: DSI, FMI and MDT - 7/7/04 CBUCCUGR -7/12/04 CASING, LINER AND CEMENTING RECORD SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE TOP BOTTOM TOP BOTTOM o 364' 0 364' o 3052' 0 3052' 2830' 3372 2830' 3372' 557 sx G 2111 sx G - good to surtace 9.2 bbls G squeeze, 33 bbls G on top of 7" retainer, top of cement @ 2642' TUBING RECORD DEPTH SET (MD) PACKER SET (MD) 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED PRODUCTION TEST Method of Operation (Flowing, gas lift, etc.): Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". ...t'11!:.~'::.~~ \~,~f~\ R~~lE9'Yo~ \ \,,:\:,>,\;:0 I ¡.::.~..:...::.;J Date of Test: Hours Tested: Production for Test Period Calculated 24-Hour Rate Oil-Bbl: -+ Oil-Bbl: ..... Flow Tubing Press. 27. Casing Press: CORE DATA RBDMS 8Fl JAN 2 0 2005 Form 10-407 Revised 12/2003 Gas-MCF: SIP: 1450 psig Gas-MCF: Water-Bbl: Water-Bbl: CONTINUED ON REVERSE Choke Size: GaS-Oil Ratio: Oil Gravity - API (corr): Alaska Oil & C!JflS.. Am:!1oftiiae URIGI~JÄL 28. NAME GEOLOGIC MARKE. TVD 29. FORMATION TESTS Include and briefly su-Aze test results. List intervals tested, and attach detailed supporting d~'K'necessary. If no tests were conducted, state "None". June 26th, 2004 Formation Integraty Test (FIT) to 17 ppg - 240 psi surface pressure with 9.8 ppg mud, no leak off. Please See Attached Document For Flow Test Information. 30. List of Attachments: Ops Summary, Well bore Schematic, Plug & Abandon Procedure (squeeze cement), Flow Test Summary, As-Built Plat, Logs Submitted Separately 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Printed Name: J. Edward Jone~ Signature: tL II. t ~ ~ "," ~~~ E~_:~"") Title: Executive Vice President, Engineering and Operations Ed '10"',) _ Phone: 907-277-1003 Date: 1 0-Jan-05 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for Injection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: True vertical thickness. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: MethO? of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas 1~~M"r.' ~. ~... t.''"'.'.... (explain). t~J= \."'::.1 V t~ ,Lei Item 27: If no cores taken, indicate "none". JAN 1 9 2005 Item 29: List all test information. If none, state "None". Alaska Oil & Form 10-407 Revised 12/2003 ORIGINAL . . WELL RE-ENTRY, TESTING, PLUGGING & SUSPENSION REPORT LONG LAKE # 1 Tyonek, Alaska l~Aurora Gas, LLC Aurora Gas, LLC 10 - January - 2005 'i"N· Ii; jt J ¡"'d~. iJ Page 1 of9 . . Background Information: The Long Lake # 1 well was permitted to be drilled as a natural gas production well by Aurora Gas, LLC, with approval given on December 15th, 2003, PTD # 203-068. The well was drilled on the reconstructed Long Lake No.1 drillsite using the rig Aurora Well Service No.1. The well was spudded on July 29th, 2004 and reached TD on ~t· _. / J..5-tl"r,JDOC ~ ocJ.-.!'1 31, 2~. . U ~ "¡. z..b .oç- The following well work summary details the re-entry, testing and plugging procedures as performed chronologically. Pates indicated reflect date morning report(s) were received in office and reflect site activities over previous 24 hour period, i.e. 0700 hrs on day previous to 0700 hrs on date of report generation and submittal. Attachment I is a schematic of the well as a plugged and suspended. Work Summary and Dailv Activities: July 18, 2004 July 19, 2004 July 29, 2004 July 30, 2004 July 31,2004 August 1, 2004 Aurora Gas, LLC Move in, rig up A WS #1 (Aurora Well Service, Rig #1) Continue RD. Assemble rig floor. Weld pitcher nipple on conductor. Hook up Kelly hose Continue RU. Pick up power swivel. Rig accepted @ 0700 hrs. Make up drill collar w/bit on power swivel. Drill out conductor surface plug, apx. 15 ft of cement. Pick up drill pipe & rotate to 340', cement stringers to 250'. Continue RD. Rill wi drill pipe from 340' to 2400', breaking circulation @ 10 joint intervals. Tag up@ 2400'. PIU power swivel- wash down from 2400' to 2710', tag cement. Drill cement from 2710' to 2906'. Condition mud, circulate bottoms up. Pressure test casing 2000 psi. (record test). POOH POOH wi BHA #1. Break offbit. Install Float - install Wear Bushing. Rill wi BHA #2, wash from 50' to 2906'. Drill cement from 2906' to 3077'. Circulate bottoms up. FIT tol2.4 ppg EMW. Drill, wash and ream to 3550', pump sweep, circulate bottoms up. POOH. SPR @ 3550' 30 spm = 40 psi, 40 spm = 103 psi POOH wi BHA #2, break off Bit, install Casing Scraper on BHA #3. Rill, circulate and condition mud. POOH wi BHA #3. Grease and service rig. Rill with 9 718 drilling assembly, pick up swivel, wash down 3 joints. Circulate an~ttfñ:~7Jlñ1p out two T\ ~', ~"C"":."';'C ',":: ,::.::." ::': .:",'_'_" .:':. ~'.,'. :::,..", ',_ __ .>,": "¡ I c. 2019 August 2, 2004 August 3, 2004 August 4, 2004 August 5, 2004 August 6, 2004 August 7, 2004 Aurora Gas, LLC . . joints. Stand back swivel, POOH POOH with BHA #3. R/U Pollard Wire Line. Run Reeve Memory Tool on Pollard slickline. RID Pollard, Prep to RIH wi drill pipe. Download & print Reeve logs. Install float equipment on 7" Liner- Analyze Log. Rill WI 3 ~ drill pipe to set Balanced Plug from 3550' to 3450'. R/U BJ, circulate and condition mud. PJSM, pump cement ;lug from 3550' to 3450'. Wash up, lay down 10 joints drill pipe. Reverse circulate, lay down 7 joints. POOH POOH with open ended 3 ~ drill pipe. Service rig. RIH with 9 7/8 BHA. Clean up rig floor, rig up GBR. RIH with 7 inch Liner. Pick up Liner Hanger and Test. RIH with Liner, Hanger and 3 ~ DP RIH with 7 inch liner to 3470'. Circulate 3 hole volumes while waiting on 4" elevators from Kenai. PU Baker cementing head, test lines to 2000 psi. Mix and pump 30 bbls MCS for sweep, followed by 200 sacks 15.9 ppg, yield 1 1.180 cu, 9 % BA-lO = 41.6 bbls slurry, 23.5 bbls water to mix, bump plug with 40.5 bbls of mud, set and release running tool. POOH with running tool. PU 9 7/8 scraper and bit RIH, tag liner top. Circulate, POOH, lay down scraper and BHA. Pick up 6118 bit and BHA. RIH to 3372', clean out Liner, circulate bottoms up. Circulate bottoms up, POOH. Test liner lap to 2000 psi. OK RIH with 6 1/8 bit and scraper. Circulate bottoms up. Clean pits. Pump 20 bbls spacer, Displace with 9.4 Brine. Circulate and Filter KCL. Lay down circulating head, POOH, lay down BHA. Rig up to test BOPs, Test Test BOPE, blind rams and Koomey, RU loggers for RST and CBL. RU lubricator wi side entry sub. Problem with guns and firing head adapter threads, Rig on stand-by. Test Schlumberger ./ lubricator to 200 psi, Pick up 4" HC 5 spf guns, First gun run 3322' to 3340', Second gun run 3248' to 3278', Third gun run 3218' to 3248', Fourth gun run 3158' to 3188', Fifth gun run 3130' to 3150'. Check well for gas and fluid levels, rig down logging unit, while monitoring well bore. RIH to Landing Collar, circulate, filter out perforation debris. POOH with 7" scraper and 8 1/8 bit, lay down drill pipe. Change rams to 2 7/8, BOP test, body and 2 718 rams. Lay down Fosters, pick up tubing tongs. Pick up Baker Tools. RIH with 2718 tubing to 3360' wi RBP and 3300' wi Packer. JAN '¡'i~ ~> ';.y Page 3 of9 August 8, 2004 August 9, 2004 August 10, 2004 August 11, 2004 Aurora Gas, LLC . . RIH wi Packer and RBP, set @ 3350'. BP would not set in up stroke, attempt to set 10'up, will not set. POOH wi packer assembly, found sand and gun debris in BP. RIH open ended to 3370', reverse circulate hole clean, POOH for packer, PU retrievable packer RIH and set @ 3300'. Rig up lubricator and swab, test lubricator and hoses to choke manifold, hose leaked, replace hose. Swab in well, took fluid samples last 3 swabs. Rig down lubricator and swabbing equipment, monitor well. Unseat packer, circulate bottoms up, lost apx. 3.4 bbls, shut down pumps monitor well, loosing apx. 3 bbls/hr. Mix and add to system 25 bbls of Brine. POOH, lay down packer, pick up cast iron bridge plug. RIH and set @ ~3314' POOH for packer, put new rope socket on swab line. RIH with packer, set 20' CIBP, test to 500 psi, good. Pull up hole to 3200' set packer for swabbing perfs. RU lubricator, test to 100 psi, swab 13 bbls from 2000' no sign of fluid or gas influx into well. RD swab, open unloader, CBU+, monitor well. Pull up hole to 3100' set packer, swab 13.9 bbls pulling from2400'. Monitor well, build volume. Unseat packer, initial loss 14 bbls, circulate thru choke stabilize system. Pressurize into perforated fonnations in 3 stages; 2 bblslmin for 1 min. SICP 220 psi Pump pressure 225 psi. 4 bblslmin for 1 min. SICP 520 psi Pump pressure 728 psi. 6 bblslmin for 1 min. SICP 820 psi Pump pressure 1381 psi. 19 bbls and 304 strokes total. Monitor well, 9 bbls loss. Circulate across top of hole. Build volume. Monitor well, set packer, rig up to swab hole. RU to swab, swab to 2400' wi no increase in fluid level. Change cups swab 29 bbls of Brine, fonnation sand and 30 ppm gas. RD swab equipment, open unloader, circulate bottoms up. POOH for 7" RBP. Lay down running tool and packer, fluid loss during trip 14.9 bbls. Pick up new packer and running tool, RIH. Set Loc-Set RBP @ 2920', pull 1 stand of drill pipe and dump 3ea 50 Ibs of sand. POOH, lay down running tool. RU Schlumberger and shooting head X/Os. Build volume 25 bbls Brine. Test lubricator to 200 psi. Arm guns, RIH to perforate. First gun run 2766' to 2786' Second gun run 2742' to 2752' Third gun run a "No Fire" Fourth gun run 2274' to 2294' ;-. Fifth gun run 2228' to 2238' Sixth gun run 2208' to 2228'. RD Schlumberger, PU 7 718 bit and scraper, RIH to 2820'. Reverse circulate till clean, 200 units methane @ surface, hold 100 psi back pressure until gas bubble was out of well bore, filter out gun debris while circulating (1 micron filters). POOH for RTTS. Dropped BHA in hole (bit, scraper, xo and 1 jt of tubing). Test choke while Page 4 0[9 August 12, 2004 August 13,2004 August 14, 2004 August 15,2004 Aurora Gas, LLC . . waiting on overshot. Pick up 4 ea 4 % drill collars. Rlli with overshot, fish on @ jt. # 84. POOH, lay down BHA and fishing tools. Set test plug, test BOPs. 2 valves and TIW failed on BOP test, work on choke manifold and replace valves. Test all repaired and replaced components. PJSM on RTTS run, make up RTTS assembly and Rlli. Set RTTS @ 2695'. Rig-up equipment to swab, wait on day light to swab. Four swab runs, 20 bbls, no flow. Rig down swab equipment. Release RTTS, reverse circulate till clean, hole taking 30bbls of fluid an hour. Build volume 30 bbls of brine. Set RTTS fill back side wi 14 bbls of9.2 brine and shut in well with bag, lined up on gas buster. Monitor well while rigging up cement equipment. Rig up BJ lines, take on water and prime up. JSA wi rig personnel and BJ reps. Test lines, set RTTS at 2695', displace wi water, 4 bbls in fOffi1ation 10 bbls in pipe. Unseat RTTS pull 5 stands up to 2378', attempt to reverse circulate, could not. Pump the long way to clear pipe to cement. Set RTTS at 2510' and rig up to squeeze. Set packer at 2316', squeeze 15 bbls of l6ppg G cement 5 bbls into fOffi1ation, pressure up to 400 psi, pressure bled to 120 psi in 1 hour. Pressure back to 400 psi, bled back to 350 psi. Pull 2 stands ~ 125' above perfs, RD cementers. Set RTTS at 2191', rig up to swab. Swab 21.6 bbls in 7 runs until samples show high sand. Circulate across top of hole, monitor for fluid losses. RD swab equipment. Fill back side (RTTS set at 2191 '). Fill tubing with water, establish injection rate of200 psi @ 1 bpm. Fill cement pod with 40 sacks of class cd-32 II cement, RU cement lines and test. Batch mix 30 sacks of class G followed by 40 sacks of class II cement with .75 calcium chloride water, total of 13 bbls of slurry, pumped keeping pressure under 400 psi, squeeze 1.5 bbls behind pipe @ 'l4 bpm, release RTTS pull 3 stands, up out of slurry on 3rd stand, CIP. RU and reverse 1.5 time tubing volume. Set RTTS test to 400 psi, lost 100 psi in 15 minutes, bleed down. WOC. Test the squeeze and tubing to 250 psi for ~ hour, good test. POOH and lay down RTTS and circulating sub. Change top rams to 3 ~ "and test to 3000 psi., set wear bushing. Rig down tubing tongs, rig up Fosters. Make up BHA and RIH. Rlli with 3 ~ drill pipe, swivel up at 2000', wash down to 2177', cement stringers. Circulate to clean up back-side. Wash fOffi1 2177' to 2300', tag cement at 2188', reverse until clean. Test squeeze to 300 psi, wash down to lower plug. Reverse at 2705' . Drill cement to 2737', wash sand f0ffi12738' to 2827' - some Page 5 of9 August 16, 2004 August 17, 2004 August 18, 2004 August 19, 2004 August 20, 2004 Aurora Gas, LLC . . cement at 2800'. Circulate bottoms up, set power swivel, reverse circulate, no sand back, no losses. POOH, lay down bit and x-over. Install 2 7/8" dyes in Fosters. RIH with Baker retriever tool and 2 7/8 tubing. Wash down over mandrel tool on RBP. Open bypass watch for fluid loss, release packer. Slips hanging on up stroke, attempt to release. Circulate the long way, hole took 12 bbls of fluid. Attempt to release again, circulate, able to work one joint out. Work BP to top of the liner into 10 %, circulate then monitor hole. Mud weight 9.0. POOH for 6 1/8 bit, rig up floor to RIH with 3 Yí drill pipe, make up BHA. Rill to 2020' pick up singles RIH to 3208', sand at 3288', wash down from 3288' t03310' top of cast iron plug. Circulate hole and :filter Brine. POOH lay down 3 Yí drill pipe. Lay down 3 Yí drill pipe. Rig down Foster tongs, rig up Oil Country Tongs, strap and prep 3 Yí tubing. RIH with 3 Yz tubing (9 joints on 3 Yí drill pipe on bottom) to plug @ 3310', make up head pin, reverse circulate and :filter brine. POOH and stand back tubing, lay down 9 joints of 3 Yí drill pipe. Rig up test joint prepare to test BOPs. Test BOPs, prep 10 joints 3 Yí tubing and clean pits. Wait on BJ Frac equipment, clean cement out of cuttings tame Wait on BJ Frac crews, clean rig. RIH with7" EA Retrievamatic Packer, 4ea 4 % drill collars and 3 Yí tubing. Rig up BJ Frac Services, wait until daylight hours to Frac. Clean rig. PJSM, Set packer at 3203', rig up HP Lines to tubing. Attempt to perform Injectivity Test - Annulus building pressure discuss options with Ed Jones, move packer up to 3110' +/- and reset. Perform Injectivity Test 2400 psi at 8.5 bpm - ISIP1212 psi, Annulus would not hold pressure (suspect broke down squeeze in the 10 % due to pressure build up during earlier Injectivity test. Mix sand for Frac job #1, add breaker. Pump Frac at 10 bpm, 48 bbls pad 24 bbls at 2ppg sand, 24 bbls at 3 ppg sand, 48bbls at 4 ppg. sand, displace with 28.5 bbls of 8.9 brine. Monitor well, clean out PAD 1;ank with Super Sucker, RIH and tag sand at 3215'. Set packer at 3110' +/- Mix gel and prep for Frac # 2. Build volume 8.9 ppg brine. Pressure test lines at 4500 psi, pump 24 bbls brine at 12 bpm, monitor for 30 minutes. Wait on BJ to mix fluid for Frac. Tried to pump Frac job, pump would not prime, discharge pump had failed and centrifuge blade was not functioning. Gel by this time had broken down and sand had fallen out. POOH with 3 Yí Page 60/9 August 21, 2004 August 22, 2004 August 23,2004 August 24, 2004 Aurora Gas, LLC . . tubing, lay down 4 % collars and 7" packer. Make up Sawtooth collar and x-over and prepare to Rill with tubing. Rill with Sawtooth collar on 3 12 tubing. Break circulation and wash Frac sand ftom 3100' (top of plug 3215') to 3314' (CIBP), circulate hole clean with High-Vis Sweep. POOH with 3 )Iz tubing. Rig up 2 7/8 handling equipment. Remove 3 )Iz pipe rams, install 2 7/8 rams and test. Pull wear ring, install test plug. Test 2 7/8 rams to 250 psi low, 3000 psi high, pull test plug. Rill with 27/8 tubing, 49 stands with packer to 3099'. Break down power swivel, break down test joint, x-over. Pull screens, clean out possum belly, seal gates, pull the back seals off of pony rods and replace. Clean pill pit for swabbing. Set packer, rig up lubricator to swab. Wail for day light hours. Rig maintenance, repair deck on catwalk, work on Loader. Rig up lubricator to swab. Swab well (total fluid recovered 28.5 bbls), monitor well. Rig down lubricator and swabbing tools. Wait on orders. Release Baker packer, allow tubing and annulus to equalize. POOH, lay down 27/8 tubing and packer. Change pipe rams to 3 1/2 ", pick up cement retainer, Rill with 93 joints of 3 )Iz tubing to 2953', set Baker cement packer. Rig up BJ, pressure test hard lines to 3000 psi. Perform injection test for cement squeeze, inject 300 bbls of formation water, average 1970 psi at 5.8 bpm. Mix 40.1 bbls of cement. Pump 13 bbls of 15.8 ppg G cement to seal perforation between 3278' and 2953'. Sting out of retainer and pump 27 bbls of 15.8 G cement to seal liner lap to 2600'. Top of cement displace with 21 bbls of H20. POOH 7 stands of3 )Iz tubing, circulate at 2512'. Circulate bottoms up to clean hole. POOH with 3 )Iz tubing, lay down Baker cement retainer. Rill with 73 joints of 3 )Iz tubing stop at 2323' 189' above cement and wait on cement to set up. Wait on cement. Rill with 3 12 tubing, tag cement at 2695' POOH with tubing, left 34 stands in derrick. Make up setting tool and Halliburton 10 % EZSV, RIH on 3 )Iz tubing to 2160' and set EZSV. Rig up BJ, attempt to pump 8 bbls cement plug. Pump malfunction, reverse)lz bbl of cement out of tubing. Work on BJ unit. Mix up cement batch, pump 8.0 bbls cement. TOC at 2080', pull 2 stands and reverse excess out at 1960'. Stand back power swivel, POOH with 3 )Iz tubing, 34 stands and break down Howco R/T. Rill with shoe, found soft cement at 2088', pull up and circulate hole. Wait on cement, Rill tag solid cement at 2088', prepare to POOH. Stand back 3 stands of 3 )Iz in the derrick and start laying down tubing. Page 70f9 August 25,2004 August 26, 2004 Aurora Gas, LLC . . Flush and clean BOPE, Nipple down BOPE and prep for demobilization. RIH with 180' of3 'l'2 tubing and displace fluid from well with air. POOH make up 'Poor Boy" Plug and RllI to 180' set plug. POOH lay down tubing. Pump 15.9 bbls Class G cement plug on top of 'Poor Boy" Plug. Clean out cellar, rig down tongs, pull Mouse Hole. All crew swapped over to Daylights at 00:00 hrs on 8-26 Rig down Aurora Well Services #1, transfer remaining fluid from Red Tank to Tiger Tanks and clean out solids, deliver to Envirotech. Lower derrick. Page 8 of9 Original RKB 544' Original GL 524' Cement Plug from surface to 180' BGL. Poor Boy plug set at 180'. Casing head still intact. Drilled 22" Hole Cement Plug Tagged. TOC @ 2088' Plug displaced from 2088' - 2160' above 10 %" CIBP (8 bbls "G") Top Tyonek - 880' I Tagged TOC at 2695' I· Set 7" RetaÌl!er @ 2953' Squeezed 13 bbls "G" below, displaced 27 bbls "G" above Long Lake No.1 Suspended Status ~ Test Perforations: Squeezed Off 5 shots per / ft. 3130' - 3150' 3158' - 3188' 3218' - 3278' \.. Open Perforations: 3322' ~3340' Cement Plug Placed 3470' 3550' 100 Sk "G" Cmt J>lug4867' - 4653' 50 Sk "G" Cmt Plug 5478' - 5371 ' 50 Sk "G" Cmt Plug 6767' - 6660' 92 Sk "G" Cmt Plug 9916' - 9705' 36" Structural Conductor set at 45', Cmtd wI 110 Sks "G" Tested to 1000 psi. after setting EZSV & cement plug 16" 75# Cmtd w/S57 Sks "G" 10 %" EZSVat 2160' Test Perforations: 2208' 2274' Test Perforations: 2742' - 2766'- Squeezed off 10 %" 40.5 & at 3052' MD. Cmtd "G" and good returns at surface. 7" CIBP set at 3314' 7" 23# J-55 liner hung from -2830' - 3468' and cemented into place. Attachment I TD 9 7/8" hole at 11097' MD (11065' TVD) I Fairweather E&P Services, Inc. I long lake No.1, 3.0 I 09/2/2004 dhv /. DrawíngNott()$cale Aurora Gas, LLC 90f9 ~~rora Gas, L!C WW\lv.aurorapower.com ó?O;3 -c90í? November 30, 2004 Attn: Steve Davies RECEIVED DEC 0 6 2004 A'l1kl Oil & Gas Cons. conrni.aiøn Ancborage Alaska Oil and Gas Conservation Commission 333 W. 7th. Ave. Ste 100 Anchorage,Al~ka99501 RE: Long Lake No. 1 Re-Entry Gentlemen: This letter in duplicate originals transmits the data to you identified below, pursuant to Aurora Gas, LLC's obligation to you. This data is relative to operations at the Long Lake No. 1 well, Cook Inlet, Alaska. Enclosed herewith: REEVES OPEN-HOLE LOG 1- Photo Density Dual-Spaced Neutron SCHLUMBERGER CASED-HOLE LOGS 1- Slim Cement Mapping Tool (SCMT-BB/ PBMS-A) wi Gamma Ray and Casing-Collar Locator 1- Reservoir Saturation Log-Sigma Mode (RST-CIPBMS-A) 2- Perforating Records, dated 8/6/04 and 8/9/04 Please signifY that you have received and accepted this data by signing in the space below and returning this letter to me at the Houston address below or by fax to me at 713-977-1347. If you have questions, please contact Andy Clifford or me at the Houston number below. Sin ely,~(l.. ~~~. ! ///r- . ! . , / J. áward Jones / / xecutive Vice Presid~ngineering and Operations ,..,L RECEIVED ~~ ACCEPTED ABOVE DATA thisp('-:; ::~f ~ìl~ E: ,~~;J~ 10333 Richmond Avenue, Suite 710' Houston, Texas 77042' (713) 977-5799' Fax (713) 977-1347 1400 West Benson Blvd., Suite 410' Anchorage, Alaska 99503' (907) 277-1003' Fax (907) 277-1006 e e FRANK H. MURKOWSK/, GOVERNOR AI,ASIiA. ORAND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 September 1,2004 Duane Vaagen Project Engineer Aurora Gas, LLC 1400 West Benson Blvd, Suite 410 Anchorage, Alaska 99503 Jáð·~&~ Re: Long Lake #1 Sundry: 304-330 Dear Mr. Vaagen: Enclosed is the approved Application for 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 Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing 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. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Enclosure Long Lake #1 (203-068) Subject: Long Lake #1 (203-068) From: STMaunder@ao1.com Date: Sun, 22 Aug 2004 18:34:18 -0400 (EDT) To: duane@fairweather.com, tom _ maunder@admin.state.ak.us, jim Jegg@admin.state.ak.us Duane, I have received the proposed abandonment procedure for the subject well and we have discussed same. The only addition to the procedure should be a pressure test to 1000 psi for 30 minutes above the final retainer at 2160'. Please stay in touch. We will desire to have an Inspector present to examine the well at the time of cutoff. Tom Maunder, PE AOGCC e e 1 of 1 8/27/2004 11 :29 AM e e - f"I ~ -- .. --- - -..... RECEIVED AUG 2 '7' 2004 Alaska Oil & Gas Cons. Commission Anchorage '..A..I _ _ '" E &2J6sPffi.g7mJ./NC. Mr. John Nonnan, Chair Alaska Oil and Gas Conservation Commission 333 West ih Ave., Suite 100 Anchorage, Alaska 99501 RE: Sundry Application to plug and abandon Long Lake No.1, PTD 203-068. Dear Mr. Nonnan: Please find enclosed the Application for Sundry Approval for the plugging and abandonment of the Long Lake No. 1 well. On Sunday, August 22, 2004, Aurora Gas, LLC sought and obtained verbal pennission to proceed with the abandonment. Attached are the documents presented at the time the approval was thus granted. In the interim, all cement plugs have been placed up to and including the cement plug which was displaced from 180 ft to surface. The rig, Aurora Well Service No. 1 is in the final stages of being demobilized from the site. When finished moving the rig and rig support equipment from the site, the final phase of the P&A which consists of cellar and wellhead removal and well ill marker plate installation will be completed. Aurora will schedule an inspection at a later date. Following completion ofthe P&A procedure, we will submit the Fonn 10-407 to show the final state ofthe Long Lake No.1 as well as the photo-documentation requested by Mr. Thomas Maunder at the time the verbal pennission to proceed was granted. Pertinent infonnation in and attached to this application includes the following: 1) Fonn 10-403 Application for Sundry Approval- 2 copies 2) A copy of the documents submitted at the time the verbal request was made to proceed with the well P&A operations with well schematics. This application is being submitted on behalf of Aurora Gas, LLC by the undersigned and any questions or concerns can be directed to same. Alternately, Mr. Ed Jones, Vice President of Operations and Engineering can be contacted directly at (713)977-5799. ~,ÞLd~ Duane H. Vaagen (FairweatherE&P Services, Inc.) Attachments cc: Ed Jones (VP Operations and Engineering Aurora Gas, LLC) 2000 East 88th Avenue· Anchorage, Alaska 99507 . (907) 258-3446· FAX (907) 279-5740 650 North Sam Houston Parkway East, Suite 505· Houston, Texas 77060· (281) 445-5711 . FAX (281) 445-3388 üR\G\NAL ~()~ RECEIVED'r~) ~ OIL AND ~:~~g~S~::;ON C~(>N AUG 212004 Æ1W;r" APPLICATION FOR SUNDRY APPROV A~laska Oil & Gas Cons. Commission 20 MC 25.280 An~þorage Operational shutdown U Perforate U Waiver [J Annular Dispos. U Plug Perforations 0 Stimulate D Time Extension D Other D Perforate New Pool 0 Re-enter Suspended Well 0 4. Current Well Class: 5. Permit to Drill Number: Abandon Gd Aller casing 0 Change approved program D 2. Operator Name: Aurora Gas, LLC 3. Address: 1400 West Benson Blvd, Ste 410 Anchorage, Alaska 99503 7. KB Elevation (ft): 1. Type of Request: 8. Property Designation: 11. Total Depth MD (ft): 3470 Casing Structural Conductor Surface Intermediate Production Liner Perforation Depth MD (ft): See Attachment f Packers and SSSV Type: NIA Suspend U Repair well 0 Pull Tubing D Development 0 Stratigraphic D Exploratory 0 Service 0 9. Well Name and Number: 14 10. Field/Pools(s): MHT-9300023 ITotal Depth TVD (ft): 3470 Length PRESENT WELL CONDITION SUMMARY IEffective Depth MD (ft): IEffective Depth TVD (ft): 3314 3314 Size MD TVD IPlugs (measured): CIBP @ 3314 Burst Junk (measured): NA Collapse 13. Well Class after proposed work: Exploratory 0 Development 15. Well Status after proposed work: Oil 0 Gas D Plugged WAG 0 GINJ 0 WINJ 45 36" 45 45 364 16" 364 364 3052 103/4" 3052 3052 638 7" 3468 3468 Perforation Depth TVD (ft): See Attachment f Tubing Size: N/A Tubing Grade: N/A Packers and SSSV MD (ft): NIA 12. Attachments: Description Summary of Proposal Gd Detailed Operations Program 0 BOP Sketch 0 ~::;:::~~ ~:~~a:;ns: ~2~041II?¡V¡ 16. Verbal Approval: Date: ~ OLL ~)()- -, h Commission Representative: þ= ~ "'1"1. ~ 17. I hereby certify that the foregoing is true and correct to the best of my kn wledge. Contact Duane Vaagen Printed Na~ Duane Vaagen Title Fairweather E&P Project Engineer for Aurora Gas, LLC Signature fU--JI¿;>.?-. ~:'PJ. .r..~..!~ne 258-3446 Date .;7" - 4~J _ .2 ÐO¥. ~ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness 203-068 6. API Number: 50-283-20039-90 Long Lake No. 1 Wildcat 2630 1020 3130 1580 4360 3270 Tubing MD (ft): N/A Well P&A'd: No I Suspended o Service 0 o o o o Abandoned WDSPL Sundry Number: 30'1- 3 3D Plug Integrity .~ BOP Test 0 Mechanical Integrity Test 0 Location Clearance .~ Other: r.Çû~L~Sr~c.:\-c{-·1 ~? \'Û.\-~,,~\\o.~\~! ~ì~.\ r~\c~ ~~. --\\V l:, ¡¡ -\0. ~~"'\. ~\YC\- ~ \J...:':IC.\~1 ~ C c-· .\-~ 0. \X"\'{')c:>..,,,.Q (C'''-.\: ~Q ~ ~ «. .. Î'"f'\~ ' \:...ù-\t.M 1i"'-A.\J~'\ INS~:::@~:~~r~:ION SEP ~~ s~t{ / e e Proposed Abandonment Procedure: Operator: Aurora Gas, LLC Well: Long Lake No.1 Exploratorv Re-Entrv PTD: 203-068 Date: 22-August-2004 Background: The Long Lake No.1, an abandoned well, was re-entered by Aurora Gas, LLC to evaluate the potential for natural gas deposits in the area. The following tasks were performed tòr the work: 1. Well re-entered and original wellbore re-opened to 3550'. 1. OH logs run. 3. Cement plug displaced in OH from 3470' - 3550' as bottom for cementing liner. 4. 7" 23# liner run, set and cemented into place from 2830' - 3468'. 5. Cased hole logs run to surface. 6. Well perforated and tested over 5 prospective intervals. Perforating performed using Schlumberger 4" guns at 5 spf. 7. After isolating, well fracture stimulation procedure was performed over the intervals from 3130' - 3278'. This was required as initial swabbing operations were unable to draw either gas or fluid samples for evaluation. Based on old well records it was assumed severe formation damage may have been present. 8. Determination made that well is unable to produce natural gas. Following the perforating and testing operations, Aurora has determined that the well in non-commercial. Attachment I shows the current configuration of Long Lake No. 1 and Attachment II reflects the proposed final P &A configuration. Aurora Gas, LLC is at this time requesting permission to permanently plug and abandon the Long Lake No. 1 well as follows: 1. Set 7" retainer at 3080' or 50' minimum above perforated interval from 3130' - 3278'. r~,~V\''::> t't'û~,'4(ß~ç\u'\'8s 'l"":>C-LCQ\"I'\-<"'\' \~. ~)"~S \"0"':>0\0\ wcr~'" \' 2. Perform injection test for cement downs4ueeze method in Step #3 using wellbore "n~'ìè '\~ \'C\- fluids swabbed in during testing of Long Lake No.1, not to exceed 300 bbls. tJl.~. 3. Using downsqueeze method, squeeze 9.2 bbls "G" cement below retainer to cover A:t-;i.?J1f open perforations. 4. Unsting :from retainer and displace 438 ft "G" cement plug above retainer from 3080' to 2642', or 100' above test perforations from 2742' - 2786'. Total anticipated cement volume for plug 19 bbls. e e 5. Set 10 %" EZSV at 2160' or 48 ft above perforated intervallocated at 2208'- 2294' . 6. Displace minimum 80 ft "G" cement plug otytop ofEZSV set at 2160'.. . .. . .\..~ Anticipated volume of cement is 8 bbls. V ~ \ l.--.\ \::> ~ <) C.5::~{G 7. Set poor boy plug at - 170 ft below surface, with tubing displace cement plug to fft<7z10' surface for minimum 150 ft cement after casing strings are cut. 8. Remove all wellhead equipment and cut casing strings minimum of 3 ft below original ground grade level (pre-pad). Fill annuli wi cement if required to surface. 9. Install subsurface well identification I P&A marker. 10. Backfill. 22-August-2004 I dhv. Aurora Gas, LLC Original RKB 544' Original GL 524' Long Lake No. 1 Long Lake No.1 Current Configuration Drilled 22" Hole Top Tyonek - 880' 448' Separation Test Perforations: 3130' - 3150' 3158' - 3188' 3218' - 3278' I Test Perforations: 3322'·3340' Cement Plug Placed 3470' 3550' { 100 Sk "G" Cmt Plug 4867' - 4653' 50 Sk "G" Cmt Plug 5478' - 5371' 50 Sk "G" Cmt Plug 6767' - 6660' 92 Sk "G" Cmt Plug 9916' - 9705' Drilled 45" Hole 36" Structural Conductor set at 45', Cmtd wI HO Sks "G" 16" 75# J·55 ST&C Set at 364' and Cmtd wi 557 Sks "G" 10 %" 45.5# K·55 Surface-1400' ? HI %" 40.5# K-55 1400' - 2500' ? 10 %" 45.5# K-55 2500' - 3052' ? Test Perforations: 2208' - 2238' 2274' - 2294' Squeezed off with 80 sack "G" Squeeze. Test Perforations: 2742' - 2752' 2766' - 2786' Squeezed off with 70 saek "G" Squeeze. 10 %" 40.5 & 45.5# K·55 Csg set at 3052' MD. Cmtd w/2H1 Sks "G" and good returns indicated at surface. 7" cmp set at 3314' PBTD at 3372' 7" 23# J-55 liner hung from -2830' - 3468' and cemented into place. Attachment I TD 9 7/8" hole at 11097' MD (11065' TVD) -- Aurora Gas, LLC Long Lake No. 1 Original RKB 544' Original GL 524' Long Lake No.1 Proposed P&A Cement Plug 2090'- 2160' above 10 W' CIBP (8 bbis) Top Tyonek - 880' Minimum 15 bbls (73 Sks) "G" surface plug to 150 below original grade level. Wellhead removed, casing strings cut to minimum of 3' below original grade elevation and subsurface well marker installed. Drilled 22" Hole / ... V 448' Separation Displace 33 Rbi "G" plug from top of retainer to 2600 ft Set 7" R,~tainer @ 3080' Squeezl9.2 bbls jG" below to covc\ perfopdions ,....,_.,.,~,.""0· Test Perforations: 3130' - 3150' 3158' - 3188' 3218' - 3278' Perforations: 3322' - 3340' I Cement Plug Placed 3470' 3550' 100 Sk "G" Cmt Plug 4867' - 4653' 50 Sk "G" Cmt Plug 5478' - 5371' 50 Sk "G" Cmt Plug 6767' - 6660' 92 Sk "G" Cmt Plug 9916' - 9705' Drilled 45" Hole 36" Structural Conductor set at 45', Cmtd wInO Sks "G" 16" 75# J-55 ST&C Set at 364' and Cmtd wi 557 Sks "G" 10 W' 45.5# K-55 Surface - 1400' ? 10 W' 40.5# K-55 1400' - 2500' ? 100/.," 45.5# K-55 2500' - 3052'? 100/.," EZSVat 2160' Test Perforations: 2208' - 2238' 2274' - 2294' Squeezed off with Test Perforations: 2742' - 2752' 2766' - 2786' Will be squeezed off HI 0/.," 40.5 & 45.5# K-55 Csg set at 3052' MD. Cmtd w/2111 Sks "G" and good returns indicated at surface. 7" CIBP set at 3314' PRTD at 3372' 7" 23# J-55 liner hung from -2830' - 3468' and cemented into place. Attachment II TD 9 7/8" hole at 11097' MD (11065' TVD) Re: Inspector Long Lake No.1 e e Duane, et aI, It does not appear that we will have an Inspector available to examine/witness the cut off on this well. In lieu of an Inspector being present, your representative should take digital photos of the well when the strings have been cut and the wellhead removed. All annuli at surface need to be filled with cement and a photo should be take to document this. A photo should also be taken of the abandonment plate to show the infonnation welded to it. Once the well has been buried and the area returned to grade, photos should be taken of the site. At some future date, the AOGCC will need to visit the location to conduct location clearance. Please call with any questions. Tom Maunder, PE AOGCC duane vaagen wrote: Tom: I have made arrangements for John Crisp to fly across the Inlet tomorrow morning. Departure time is 0730 hrs out of Merrill Field on Spernak. John will fly into Tyonek and will be picked up there for transport to the well site. I have him tentatively scheduled to return at 1630 hrs, with departure from Tyonek and flight back to Merrill Field. The rig will schedule his return earlier if John is ready to go. It is my understanding that you will contact John with this information. The rig contact number is 440-5500 and Jack McDade is the day company man and Matt Belgum is the night company man. In the event it looks like the rig will not be able to meet the planned plug schedule, I will have them call the AOGCC direct and inform you of any changes. Please call if any questions or concerns. Duane Vaagen Project Engineer Fairweather E&P Services, Inc. duane(â¿fairweather .com Office: (907)258-3446 Cell: (907)240-1107 PI\~~J ~{-- ~<.o~ 1 of 1 3/1/2006 9:50 AM Long Lake #1 (203-068) e e Subject: Long Lake #1 (203-068) From: STMaunder@ao1.com Date: Sun, 22 Aug 2004 18:34:18 -0400 (EDT) To: duane@fairweather.com, tom _ maunder@admin.state.ak.us, jim _regg@admin.state.ak.us Duane, I have received the proposed abandonment procedure for the subject well and we have discussed same. The only addition to the procedure should be a pressure test to 1000 psi for 30 minutes above the final retainer at 2160'. Please stay in touch. We will desire to have an Inspector present to examine the well at the time of cutoff. Tom Maunder, PE AOGCC 10fl 8/23/2004 8:08 AM RE: Long Lake . . Tom: As far as an update goes, here's where we are now: We have finished running, cementing, cleaning out and testing the liner at the Long Lake No.1. They are currently in the process of swapping out the mud for brine and will then test the stack. After running eline logs they will start the perf and test sequence to see what we have. We have approximately 1 more week of work at this site. After this, we're going to be somewhat dead in the water as far as the rig goes. We will likely take the BJ cementing equipment down to P&A the Simpco Kaloa 1 well at that time. As far as further work, the following is pending: Tyonek Reserve: PTD 164-011. We will be submitting the PTD paperwork soon to re-enter this well. There mayor may not be some issues with some other agencies, but we will find out. Aurora gas would like to test the gas potential in some of the Beluga and Tyonek sands present in this well. How quick do you think the PTD could be turned around? We would use the Aurora rig for this prior to shipping back across the Inlet. Cohoe Unit No.1: PTD #173-025. Again another re-entry and pretty much the same as above. We would like to do these before winter if possible. This well is located near Kasilof and would likely be the last work this season for the Aurora Well Service Rig #1 this year. For the re-entry operations we would need a different BOP set-up and would likely use a string of 2 7/8" drill pipe for drilling out the plugs. Simpco Moquawkie No.1: Sundry approval # 303-115. We will test this well as is without a rig and have no intent of performing any work-over on the well this year as originally proposed. If this well will produce in a commercial fashion as is, we will install metering and treating facilities at the well and then a line to feed into the Mobil Moquawkie compression facility for pass-through into the sales line. Three-Mile Creek No.1: This well is in the process of being permitted at the time of this communication. The site and access route have been staked. This will be roughly an 8000 ft exploratory well. We are looking at alternate rig options at this time as well. We will try to get the permitting in place to drill the well this fall. Aspen No.1: The same applies here as per the Three Mile Creek No.1 just mentioned. The drilling of this well would be immediately after the drilling of the Three Mile Creek prospect. Both of these wells are on the NW side of the Inlet in the region we have been operating in. Pending rig availability, no permitting snags and other equipment availability, I figure we should be wrapped up with our work by late November to mid December. Hopefully sooner! This pretty much sums up any work I am currently involved with at this time for Aurora Gas. Please call if any questions or concerns. Regards Duane 10f2 3/9/20068:01 AM RE: Long Lake . . -----Original Message----- From: Thomas Maunder [mailto:tom Sent: Wednesday, August 04, 2004 To: duane vaagen Subject: Re: Long Lake maunder@admin.state.ak.us] 4:16 PM Hi Duane, This is the last note I have on across Inlet operations. I think you may have sent me a tentative schedule, however I can't lay my hands on the electrons. Could you let me know what the schedule is looking like?? I am curious in particular about the Simpco Kaloa #1 P&A. Thanks, Tom on 7/25 duane vaagen wrote: Tom: This email is being sent to notify the AOGCC that Aurora Gas, LLC has finished operations at the Nicolai Creek Unit No. 3 well and is currently in the process of moving the rig to the Long Lake No. 1 wellsite. Re-entry operations will begin as soon as all equipment and supplies have been shipped. Please call if any questions or concerns. Regards Duane Vaagen Project Engineer Fairweather E&P Services, Inc. duane@fairweather.com <mailto:duane@fairweather.com> Office: (907)258-3446 Cell: (907) 240-1107 20f2 3/9/20068:01 AM [Fwd: FW: Aurora survey] . . Is this for you? -------- Original Message -------- FW: Aurora survey Thu, 15 Jan 2004 13:03:35 -0900 duane vaagen <duane@fairweather.com> 'James Regg' <jim regg@admin.state.ak.us> Subject: Date: From: To: Jim: Here are the complete set of coordinates for the Long Lake No. 1 well as re-surveyed this past summer (2003). The West Moquawkie No. 1 was never re-surveyed. Duane Vaagen Fairweather E&P Services, Inc. 258-3446 -----Original Message----- *From:* Scott McLane [mailto:msmclane@mclanecg.com] *Sent:* Thursday, January 15, 2004 1:18 PM *To:* duane vaagen *Subject:* RE: Aurora survey Duane the Section Line offsets that the Oil and Gas wants are as follows: 398 FT. FEL (FROM EAST LINE OF SECTION) 1074 FT. FSL (FROM SOUTH LINE OF SECTION) SECTION 32 TOWNSHIP 12 NORTH RANGE 12 WEST Scott 10f2 1/20120047:23 AM [Fwd: FW: Aurora survey) . . Duane The surveyed location of the Long Lake Well No. 1 is: Alaska State Plane Zone 4 NAD27 Northing: 2590605.541 Easting: 246710.746 Lat: 61°04'59.272" N Long: 151°25'50.685"W We have not surveyed West Moquakie #1 yet. Scott 20f2 1/20120047:23 AM · ~~!Æ ~ ì (ill} !Æ ~!Æ~ ~~!Æ e AI1ASIiA. OIL AND GAS CONSERVATION COMMISSION J. Edward Jones Vice President Aurora Gas, LLC 1029 West 3rd Ave. Ste. 220 Anchorage, AK 99501 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Long Lake Unit #1 Aurora Gas, LLC Pennit No: 203-068 Surface Location: 1073'FSL, 402' FEL, S32, T12N, RI2W, SM Bottomhole Location: 1079' FSL, 520' FEL, S32, RI2W, SM Dear Mr. Jones: Enclosed is the approved application for pennit to drill the above referenced development well. This pennit to drill does not exempt you from obtaining additional pennits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required pennits and approvals have been issued. In addition, the Commission reserves the right to withdraw the pennit in the event it was erroneously issued. Cased hole logs must be acquired as specified in Aurora's logging program that was provided to the Commission on April 22, 2003. Because this is a re-entry of an abandoned well that was previously logged, Aurora must record a minimum of a gamma ray log across the open hole portions of the re-entered wellbore for correlation purposes. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission 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 a Commission order, or the tenns and conditions of this pennit may result in the revocation or suspension of the pennit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). BY ORDER OF THE COMMISSION DATED this1L day of December, 2003 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section 1a. Type of work [I Drill [ XI Re-Entry 2. Name of Operatol [ I Redrilll1b. Type of we I [ I Deepen Aurora Gas, LLC. STATE OF ALASKA ALASKAaL AND GAS CONSERVATION COM.SION . PERMIT TO DRILL 20 AAC 25.005 [ I Service [X I Development Ga~ [ I Single Zone [ I Explorator} [ I Stratigraphic Test [ I Development Oi 5. Datum Elevation (OF or KB 10. Field and Poo 528 (OF) Wildcat 6. Property Designatior MHT ·9300023 7. Unit or Property NamE Long Lake Unit 8. Well Number Long Lake No. 1 9. Approximate spud datE 20-May-03 14. Number of acres in propert~ 15. Proposed depth (MD and TVD 3116 3550' MD & TVD 17. Anticipated pressure {see 20AAC 25.035 (e)(2)} Maximum surface 1349 psig. At Iotal depth (TVD) Selling Depth Specifications Top Bottom Grade Coupling Length MD TVD' MD TVD A¡'7l [ XI Multiple ZonE 1029 West Third Ave. Suite 22C _-,) Anchorage, Alaska 99501 ~ 9~ yv 4. Location of well at surfacE 107~ FSL,AD2 FEL, See 32, T12N, R12W SM ASPX 246714', ASPY 2590606 At top of productive interva 1084' FSL, 450' FEL, See 32, T12N, R12W SM 3. Address 11. Type Bond (See 20 AAC 25.025) Letter of Credit NZS 429815 Number At total depth Amount $200,000 @ Proposed Final R-Entry Depth 3550' 1079' FSL, 520' FEL, See 32, T12N, R12W, SM 12. Distance to nearest property lin, 113. Distance to nearest wel 3.5 mile 16. To be completed for deviated wells Kick Off Depth NA -18. Casing Program Size Casing Weight Maximum Hole AngleNA 1739 psig Hole Quantity of Cement (include stage data) 9 7/S" 7" Liner 23 J-55 LTC -648 2852 2852 3500 3500 - 25 bbls "G" @ 15% excess 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured true vertic; Effective depth: measured true vertic. o o o o feet feet feet feet Plugs (measured) "G" cement @25', "G" plugs at 2906 - 3120', 4653 - 4867', 5371 - 5478',6660 - 6767',9705 - 9916' Junk (measured) Casing Length Size Cemented MD TVD 45' 45' 364' 364' 3052' 3050' Structural Conductor Surface Intermediate Production Liner 45' 364' 3052' NA 30" 16" 103/4" 110sx"G" 557 sx "G" 2111 sx "G" Perforation depth: measured NA true vertical 20. Attachments [ X] Filing Fee [ X] Property Plat [ X] BOP Sketch [ XI Diverter Sketch [ XI Drilling Program [XI Drilling Fluid Program [ I Time vs Depth Plot [I Refraction Analysis [ I Seabed Report [ I 20AAC25.050 Req. Contact Engineer Name/Number: / J. Edward Jones I (713)977-5799 Prepared By Name/Number: Duane H. Vaagen 1258·3446 21. ~~ge~:~y rli tha~ f~regoing' tr and correct to the Jb:~t ~f my k;7edge.. ...I- Li / 7 A L./~¿;1 ~.4-? Tille 1/ / ce-.-I/' /7:/1 ot41 / . Date -/ / 7/'O:J Commission Use Only Permit Nu b 203-ð6SA umber 5e>- 2B3- 2C>C>39 - 9D Conditions of Approval: Samples Required: r ] Yes [~No Hydrogen Sulfide Measures: [ I Yes DO No Required Working Pressure for BOP. E: JJ. J 2M, f 13M, [J 5M, Other: ?:¡:)oa ~ 5 \. \6'U"V \E:..<:, \B¿t/)Y( Original Signed By Approved By SilMh Palin Form 10-401 Rev. 12-01-85 ApproYa~w I See cover leller IJ/ /5 ¡? for other requirements Mu Log Required [ I Yes M'No Directional Survey Req'd [J Yes ~o [ ] 10M, [J 15M Commissioner by order of the commission Date ¡? /;fc:3 Sub~ín Triplicate 0' R ( G f ~,J A L Aurora Gas, LLC. e Long Lake No. "ell Re-Entry Program Long Lake No.1 Re-Entry and Re-completion Back2;round Information and Present Condition ,J 'I (Ant r- AIl depths herein are referenced to original RKB at 544.3' AMSL. Long Lake~o. 1 was spudded March 31, 1973 by Texaco. A 45" hole was drilled to 45'. A 36" conductor was cemented in with 110 sacks "G". A 97/8" hole was then drilled to 365', the hole was opened to 15" and then to 22". The surface hole was then cased with 16", 75#, J-55 landed at 364' with a stab in collar located at 328'. The surface casing was cemented in place with 557 sacks "G" cement. A starter head and BOPE were installed, a 9 7/8" bit was picked up and the hole was drilled to 3070'. A 15" hole opener run was followed by 10 o/,¡" 40.5# and 45.5# surface casing landed and cemented at 3052' with 2111 sacks of Class "G" cement to surfac;'- Th~ 20" BOPE was removed and Î2" BOPE was installed. A 97/8" hole was then drilled to TD at 11,097'. Open hole logs were run and the decision was made to plug and abandon the well. Cement plugs were placed at varying intervals in the wellbore (Attachment I), the wellhead cut off and a marker was installed. Long Lake No.1 has minor directional tendencies. Due to incremental change in hole attitude along the course length being considered for redevelopment, the Long Lake No. 1 will be treated as a vertical wellbore for purposes of calculation. Site Access Access will be off existing road system. The original access road and well site will be cleared of brush and utilized. Other then general maintenance, no new construction or disturbance is anticipated. Ri!! Used for Proiect Aurora Well Service, Rig No.1 (AWS #1) will be used. This is the same rig used last year for the Nicolai Creek well work. Configuration of pits, and solids equipment will be the same as last year. Working floor elevation ~ 14' AGL. Lon!! Lake No.1 Re-entry. Re-Completion Procedure In order to effectively re-enter and re-complete the Long Lake No. 1 as a gas production well in accordance with AOGCC regulations, the following tasks must be completed: 1. Install new 3000 psi wellhead assembly. 2. MI/ RU A WS Rig No.1, install and test 11" 3M BOPE. Test gas detection and PVT systems to ensure proper function. 3. Drill out cement plugs from surface to 2906' in 10 o/,¡" casing with 9 7/8" mills or bits as required. Fairweather E&P Services, Inc. Rev. 1.4 Page 1 of6 04-April-2003 Aurora Gas, LLC e Long Lake No. .ell Re-Entry Program 4. Pressure test and verify integrity of 10 %" casing. Isolate leaks and initiate cement squeeze procedures as needed to remediate. Pressure test to 2000 psi. 5. Insure mud weight is 9.6 ppg, drill out cement plug across and below shoe to 3077' with 97/8" mill or bit, shut down pumps and monitor well for flow, perform LOT with MWE of 17.5 ppg. Proceed to drill out remaining cement to 3120'. Condition mud, continue drill / re-entry operations in original wellbore to 3550'. 6. POOH, LD bit, PU 10 %" casing scraper, RIH to 3050', POOH. LD casing scraper, PU 9 7/8" bit, RIH to 3550' condition hole for CH and OH logging. 7. CBU, condition mud, POOH. 8. Run OH logs below shoe and CH logs above shoe. 9. POOH, PU 97/8" bit, TIH to 3550', condition hole for running 7" liner. 10. As determined by OH logs, run, cement and land ~648' 7" 23# I-55 liner at ~3500'. Liner packer and slips should be at ~2852'. Liner cementing and packer setting procedure will be at direction of Baker Oil Tools on-site representative. 11. Run 10 %" casing scraper to top liner, DO NOT tag liner top. POOH, LD 10 % casing scraper. RIH with 6 1/8" bit, slow down when entering liner top, drill out any cement stringers to top of liner float collar. POOH, LD bit, PU 7" casing scraper and RIH to top of liner float collar. Circulate out mud and displace with clean recycled KCl, weighted to 9.6 ppg. 12. Run GR, CCL, perforate and test as determined by logs run in step 6. Zones behind both 7" liner and 10 %" casing may be perforated and tested. Prior to running test packer or completion screen, 7" casing scraper must be run across all perforations. 13. Run sand exclusion screen assembly spaced as needed across perforations. Hang assembly off permanent / retrievable gravel pack type packer. 14. Pull workstring, Run, space out and land 27/8" 6.5# I-55 production tubing. PU and circulate, displace tubing annulus with O2 inhibited brine, land tubing and lock in place. Install blanking plug in profile nipple. 15. NU production tree valve assembly, install BPV, pressure test tree to 3000 psi. Pull BPV, pull blanking plug. Attachment II, illustrates proposed completion. 16. Swab in well, release rig. Fairweather E&P Services, Inc. Rev. 1.4 Page 2 of6 04-April-2003 Aurora Gas, LLC. e Long Lake No. "'ell Re-Entry Program Lon!! Lake No. 1 Pressure Considerations The area has had considerable exploration activity for oil, however infonnation on the properties ofthe shallow gas sands is incomplete. Historic well records indicate the Long Lake No.1 was drilled with mud weights to 9.63 ppg from surface to - 1000', mud weights to 11 ppg from 1000 - 3000', and a mud weight to 9.65 from 3000 - 11,097' TD. There is no record of gas encroachment. A 9.65 ppg mud would induce a pressure gradient of .501 psi/ft and could indicate a maximum anticipated bottom-hole pressure of 1781 psi at 3550'. Conversely, if 11 ppg mud was necessary at 3000', one could expect pressures on the order of 1716 psi behind the 10 %" casing for a theoretical PPG of.57 psi/ft. Based on well records in the vicinity, this is highly unlikely, but good oil-field practices and caution will be used during re-entry and perforating procedures to ensure well control is maintained. Records from the recently drilled offset gas well, Lone Creek No.1 drilled in 1998 indicated mud weights from 9.8 - 10+ ppg were required for drilling surface hole to 968', to minimize gas encroachment. This could be free gas associated with shallow coals in the region. Testing indicated reservoir pressures at 2400' to be - 1100 psi for a pore pressure gradient of .45 psi/ft. <:- Maximum Anticipated Surface Pressure The maximum anticipated surface pressure (MASP) for the single 9 7/8" hole section can be conservatively calculated by subtracting the gas gradient from the predicted pore pressure for the TVD depth at TD. Using a pore pressure gradient of .49 and a gas gradient of .11, the MASP can be calculated as follows: Gas Gradient - .11 Pore Pressure Gradient - .49 (conservative estimate) => Maximum anticipated Surface Pressure = Depth(tvd) x (PPG - GG) => 3550 x (.49 - .11) = 1349 psi. A mud weight of 9.8 ppg or other, as detennined by operations, will be maintained during re-entry operations. The hole will be re-opened -25' below the 10 %" shoe from 3052' - 3077' and an FIT using a MWE of 17.5 ppg will be perfonned to evaluate the local fracture gradient for liner cementing purposes. For perforating, a filtered KCL brine weighted to 9.8 ppg or other as detennined when drilling will be used. Perforating and testing will reveal actual pressures prevalent to the area and zones of interest, kill weight brine density will be adjusted accordingly. If perforating the 10 %" casing, caution will be exercised to control and monitor pressures should the PPG be higher. An 11" (3M) BOP system will be used, BOP tests will be perfonned to 3000 psi. Please see attached diagram of BOP system Fairweather E&P Services, Inc. Rev. 1.4 Page 3 of6 04-April-2003 Aurora Gas, LLC. e Drillin!! Fluid Properties: Tyonek Formation Base Fluid Density PV yp API Filtrate Total Solids Polymer mud system 5% KCL 9.3 - 9.8 22 - 30 20 - 30 < 10 15 - 25 % Drilline: Fluid System: Long Lake No. .ell Re-Entry Program Shale Shaker, Desilter, Centrifuge, Ditch Magnets, PVT monitors Lon!! Lake No.1 Liner Specification Size (in) Length (ft) Weight (lb/ft) Coupling Grade Collapse Resistance (psi) Internal Yield (psi) Joint Strength (1000 lbs) Body Yield (1000 lbs) Wall Thickness (in) J.D. (in) Drift Diameter (in) API 7 ~648 23 LTC J-55 (min) 3270 4360 313 366 .317 6.366 6.241 Please see aUached Liner Analysis and Specifications Lone: Lake No.1 Liner Cementin!! Pro!!ram The 7" liner will be cemented in fully, from TD to top ofliner lap with 15.8 ppg class "G" cement using standard liner cementing techniques utilizing liner float equipment and wiper plugs. Cement System Primary Type Cement "G" Weight (ppg) 15.8 Volume @ % Excess 25 bbls @ 15 % OR Fairweather E&P Services, Inc. Rev. 1.4 Page 4 of6 04-April-2003 Aurora Gas, LLC. e Long Lake No. _ell Re-Entry Program Drillin!! Hazards: Drilling in the South Central Region of Alaska offers its own challenges. Common known hazards are as follows: Shallow gas: Shallow gas is a known hazard which exists throughout the area. The northwest side of Cook Inlet is noteworthy for its shallow gas hazard. All responsible personnel will be made aware and a notice of such hazards will be posted in the rig doghouse. There is no record of H2S in the region, however; a gas detection system capable of detecting H2S as well as methane will be installed on the rig with detectors at the floor level, the shale shaker and in the cellar. Coal Seams: The Cook Inlet region is rich in coal seams, interbedded between the sands, gravels and shale's that make up the Beluga and Tyonek formations. Drilling into a coal seam will appear to be a drilling break when drilled with a tri- cone bit. The major hazard of drilling into a coal seam without observing the proper response, is the risk of stuck pipe. The proper course of action for preventing stuck pipe is two-fold. First, prior to drilling, insure the drilling fluid system is up to par, per recommendations from the on-site mud engineer. The second step to successfully drilling through coals in the Cook Inlet area is to not get greedy when coals are encountered. When a coal has been encountered, pull back above coal after drilling into it, and circulate, allowing the coal to stabilize. Re-enter, drill some more, and pull back out again. Continue in this fashion until successfully through the coal bed. The key word in successfully drilling the coal beds is patience. It should be remembered that coals behave plastically, and will flow under the weight ofthe overburden. The deeper the coal, the more pronounced this tendency becomes. For this reason it is critical to maintain the proper weight and viscosity of your drilling fluid to properly remove the coals drilled up, and to hold flowing coals in place. Again, follow the recommended drilling fluid program and advice offered by the Mud Engineer. Nearby Well's: There are no known wells in close proximity to Long Lake No.1 Other: Sticky bentonitic clays, boulders, lost returns & differential sticking wI overbalanced muds (+ 12.5ppg) and gas influx while cementing Fairweather E&P Services, Inc. Rev. 1.4 Page 5 of6 04-April-2003 Aurora Gas, LLC. e Long Lake No. .ell Re-Entry Program Long Lake No. 1 Summary of Drilling Hazards POST THIS NOTICE IN DOGHOUSE ..¡ There is potential for pressure below surface plug. ..¡ Possibility of junk in hole from original P&A procedure. ..¡ There is potential for pressure below cement plug from 2906' to 3120'. ..¡ There is potential for stuck pipe below the shoe at 3052' in open- hole due to coal stringers. ..¡ There is no H2S risk anticipated for this well. CONSULT THE LONG LAKE No. 1 WELL PLAN FOR ADDITIONAL INFORMATION Fairweather E&P Services, Inc. Rev. 1.4 Page 6016 04-April-2003 e WelllD long lake No. 1 Min. Safety Factors To Be Used: Body Yield: 1.5 Jt. Strength: 1.8 Collapse 1 Collapse While Cementing 1 Top Burst 1.1 'Bottom Burst 1.1 TOL Burst 1.1 Casing Properties: Size OD: Grade: Weight ppf: Coupling: Top Depth Set Depth ft Total Length Run ft Next Casing Depth Collapse Resistance (psi) Internal Yield (psi) Joint Strength (psi) x 1000 Body Yield (psi) x 1000 7" J-55 23.00 LTC 2852 (ft)MD 3500.00 (ft)MD 648.00 3500.00 (ft)MD Fluid Properties: Material Mud Weight Anticipated Mud Wt Next Csg pt. Calculated Bouyancy Factor @ Mud Wt: Anticipated Cement Weight (ppg) Sea Water Gradient (ppg) Frac Gradient at Shoe(ppg) Gas Gradient (psi/ft) Mud Backup Gradient ppg % Fluid Drop for Collapse Calculation (Enter #). Long Lake No. 1 Liner Analysis e 711 liner Analysis 2852.00 (ft)TVD 3500.00 (ft)TVD 3500.00 (ft)TVD 3270.00 4360.00 313.00 366.00 313,000.00 * Tensile Limits 366,000.00 * Tensile Limits Weight ppg Gradient psi/ft 9.60 0.499 psi/ft 9.60 0.499 psi/ft 0.85 15.8 0.822 psi/ft 8.94 0.465 psi/ft 17 0.884 psi/ft 0.110 8.95 0.465 55 0.55 1 Tensile Calculations: Weight in Air (Ibs) Bouyant Weight in Mud (Ibs) Maximum setting depth (ft) Joint Strength Safety Factor Body Yield Safety Factor Collapse Calculations: Collapse Safety Factor Collapse SF while cementing Liner Calculation Only Burst Calculations: I ASP (anticipated surface pressure) Top Burst Safety Factor ** If Liner Ran back to surface TOl Burst Safety Factor Safety Factor at Top of Liner Bottom Burst Safety Factor Summary of Body Yield Joint Strength Collapse Collapse Top Burst ** TOL Burst Bottom Burst Long Lake No. 1 Liner Analysis e e 14,904.00 12,716.26 13,608.70 In Air: = Jt Strength I Wt.ppf 21.00 In Air: = Jt Strength I (Wt ppf * set depth) 24.56 In Air: = Body Yld I (Wt ppf * set depth 4. 78 Collapse Res / (Depth lVD ' % Fluid Drop '(Mud B-up Grad - Gas Grad» 15.65 Collapse Res/«Ann Mud Grad TOL *lVD+Cmt Grad SOL *lVD)-lntemal Mud Grad) No lost Circulation/Evacuation occurs Assume seawater backup gradient. .465 psilft for burst design purposes Assume worst case by using trac gradient at casing shoe for ASP calculations. 2,709.00 (Frac Grad - Gas Grad)' Set Depth lVD 1.61 Tube burst rating / ASP 2.58 (TOL Ivd'Seawater Grad + In!. Yld)/«Frac Grad-Gas Grad)"TOL Ivd) 2.21 (In!. Yld + Depth lVD' Seawater Grad) / ASP 7" Safety Factors 24.56 in air "Tensile" 21.00 in air "Tensile" 4.78 15.65 while cementing 1.61 2.58 2.21 OK OK OK OK OK OK OK 2 D W Proposed ng lake No.1 P&A'd Granite Point, Alaska Present Condition 25' Cement Plug at surface in casing. 103/4" & 16" Casing cut 4' Below Gl & Marker installed. Original Gl Original KBE 524' 544' Top Tyonek ? Top Hemlock 4872' Long Lake No.1 36" Hole ...... 22" Hole 100 SI< "G" Plug 3120 - 2906' 100 SI< "G" Plug 4867 - 4653' 50 SI< "G" Plug 5478 - 5311' 50 SI< "G" Plug 6161 - 6660' 92 Sk "G" Plug 9916 - 910S' TO @ 11,097' MO (11,065.2' TVO) ... Fairweather E&P Services, Inc. 30" Conductor @ 45' ..... CMT'O W/110 SX "G" lI!III.. 16" 15# J-55 ST&C @ 364'Csg Cmtd WI 551 SX "G" 103/4" 40.5 & 45.5# K-55 @3052' Cmtd W/2111 SX (2492 ft3) "(i" Good returns to surface. 9 118" OH Attachment I Rev. 03 DHV 28-Mar-2003 Drawing Not to Scale I [ Proposed l lake No. 1 Gas Prod. Granite Point, Alaska Present Condition 36" Hole ......... Original Gl Original KBE 524' 544' 22" Hole Top Tyonek. -880' 02 Inhibited, kill weight KCl Packer Fluid above Packer Sand Exclusion Screen hung across perforations. Exact size and type to be determined. Exact perforation depths to be determined by CH and OH logging. Perfs -3125 . 3190' Perfs ....3215 - 3370' 100 SI< "G" Plug 4867·4653' Top Hemlock. 4872' 50 Sk "G" Plug 5478 - 5371' 50 Sk "G" Plug 6767 - 6660' 92 Sk "G" Plug 9916 . 9705' TD @ 11,097' MD (11,065.2' TVD) Long Lake No. 1 Fairweather E&P Services, Inc. t t t t t t ... 2 7/S" 6.5# J-55 Production Tubing 30" Conductor @ 45' .... CMT'D W/110 SX "G" ...... 16" 75# J-55 ST&C @ 364'Csg Cmtd WI 557 SX "G" Permanent I Retrievable type Packer With Sealbore assembly and Mill-out extension. Depth determined by top perforations. - Perfs -2200 . 2230' Perfs -2755 - 2180' 103/4" 40.5 & 45.5# K-55 @3052' Cmtd W/2111 SX (2492 ft3) "G" Good returns to surface. 7" 23# J·55 liner hung from"" 2852·3500' & cemented in place. Exact depth to be determined by logging. 9 7/8" OH Attachment II Rev. 04 DHV 30-Mar-2003 Drawing Not to Scale e e Aurora Well Service Rig No.1: Proposed 3M BOP Configuration for well re-entry, work-over and Drilling 1",-- I) .,./ c 11" 3M Mud Cross C 3" 5M Manual Valve (Kill Line) ~ 3" 5M Hydraulic Valve ~.~ ~ · (Kill Line) -----.~ Fluid flow direction ~ ~ while reverse circulating ~ II 16" 3M cq[):, Braden Head Long Lake No. 1 BOP System Fairweather E&P Services, Inc. System designed to work in reverse circulation mode, where returns taken up workstring and through power swivel to pits, during re-entry procedures. Grant rotating head to be replaced with standard flow nipple when OH drilling commences. /1 ,',b.. Spool ~ ~ 3M Grant Rotating Head for 3 1/2" DP 3" 3M Manual Valve on spool for either pumping into or taking returns above rams. 3M Schaffer Annular Preventer Pipe Rams sized -, to work string. --.J 11" 3M Double Gate wI 3/12" pipe ~ rams installed. Blind Rams . 3" 5M Manual Valve (Choke Line) ~~ ____ 3" 5M Hyd,aulic Valve ~ (Choke Line) I ~16" X 11" 3M Tubing Spool ..::[ll@1I[þ 2" 3M Manual Valves On Wellhead " Rev. 03 DHV 25-Feb-2003 I Lon£ Drawing Not to Scale e e Aurora Well Service Rig No.1 Proposed Choke / Kill Manifold Configuration All valves are 3" rated at 5000 psi. Inlet from Power Swivel (Reverse Circulation Mode) Output to Pits ~ 2" 5M Rated Valves Hydraulic Remote Activated choke 3" 5M Rated Valves . [J:O:I] Inlet from BOP Choke Line 3" 5M Rated Valves 3" 5M Rated Valves ~+' ~d Flare Line to Open Flare Pit ~"-......,,.; - ß:O:{]:ß:O::fl=-=£- ~ 2" 5M Rated Valves Manual Choke To Gas Buster "Atmospheric Degasser" I Lake No. 1 Choke Manifold Fairweather E&P Services, Inc. Rev. 03 DHV 25-Feb-2003 Drawing Not to Scale 1a. Type of work I) Drill I X) Re-Entry 2. Name of Operator 3. Address STATE OF ALASKA ALASKA....Q!.L AND GAS CONSERVATION CO~ISSION . PERMIT TO DRILL . 20 AAC 25.005 I ) Service IX ] Development Gas I ] Single Zone I ] Exploratory I ] Stratigraphic Test I ] Development Oil 5. Datum Elevation (OF or KB) 10. Field and Pool 528 (DF) Wildcat 6. Property Designation MHT ·9300023 7. Unit or Property Name Long Lake Unit 8. Well Number Long Lake No. 1 9. Approximate spud date 20-May-D3 14. Number of acres in property 15. Proposed depth (MD and TVD) 3116 3550' MD & TVD 17. Anticipated pressure {see 20 MC 25.035 (e) (2}} Maximum surface 1349 psìg, At total depth (TVD) Setting Depth Top Bottom MD TVD MD TVD I ] Redrilll1b. Type of well I ) Deepen Aurora Gas, LLC. I X) Multiple Zone 1029 West Third Ave. Suite 220 Anchorage, Alaska 99501 4. Location of well at surface 1073' FSL, 402' FEL, See 32, T12N, R12W SM ASPX 246714', ASPy 2590606' At top of productive interval 1084' FSL, 450' FEL, See 32, T12N, R12W SM @ Proposed Final R-Entry Depth 3550' 1079' FSL, 520' FEl, See 32, T12N, R12W, SM 12. Distan:?~ ~earest property line 113. Dista~ 10 n~ell 16. To be completed for deviated wells Kick Off Depth NA -18. Casing Program Size Specifications Casing Weight Grade Coupling Length At total depth Hole 9 718" T' liner 11. Type Bond (See 20 MC 25.025) Letter of Credit NlS 429815 Number Amount $200,000 Maximum Hole Angle NA 1739 psig Quantity of Cement (include stage data) 23 - 25 bbls "G" @ 15% excess J-55 LTC -648 2852 3500 3500 2852 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Total depth: measured true vertic; Effective depth: measured true vertic; Casing Structural C~nductor .. Surface Intermediate ',. ·iF.P,.I;Qduction .. pner Perforation depth: o o o o feet feet feet feet Plugs (measured) "G" cement@25', "G" plugs at 2906 - 3120', 4653 - 4867', 5371 - 5478',6660 - 6767',9705 - 9916' Junk (measured) Length Cemented MD TVD 110 sx "G" 45' 45' 557 sx "G" 364' ,;364' 2111 sx "G" 3052' 3050' Size 45' 364' 3052' NA 30" 16" 10 3/4" measured true vertical NA 20. Attachments I X) Filing Fee I X) Property Plat I X) BOP Sketch I X) Diverter Sketch I X] Drilling Program I X] Drilling Fluid Program I ] Time vs Depth Plot I) Refraction Analysis I ) Seabed Report I ] 20AAC25.050 Req. Contact Engineer Name/Number: J. Edward Jones I (713)977-5799 Prepared By NamelNumber: Duane H. Vaagen 1258-3446 21. I hereby certify that the foregoing is true and correct to the best of my knowledge Signed Permit Number Conditions of Approval: Approved By Form 10-401 Rev. 12-01-85 Title Date Commission Use Only IAPI Number Samples Required: Hydrogen Sulfide Measures: Required Working Pressure for BOPE: other: I ) Yes I) No [ ] Yes I] No [ ] 2M, 113M, I] 5M, See cover letter for other requirements Mud Log Required I ] Yes I ] No Directional Survey Req'd I] Yes I ) No I ) 10M, I] 15M Approval Date Commissioner by order of the commission Date Submit In Triplicate ~I~ . . r- - -- -l~- - - --1-- -- --T--- --- ¡--- - -li------, II I ~ : : I : : 24 I 19 20 I 21 I 22 I 23 , I : I I ,. I I I I::. I I i------t------¡------¡-------:-----t:------1 1 I: I '~I I I 25 30' 29 I 28 I 27 Iii' 26 ' , I ALONG LAKE UNIT NO.1 .~I , I I LAT. =61°04'59.28" 1-1 I L____ __ ___ _ ___1__ _ __ .J LON-º.:..!5.r~5-'.?Q;.6r____ +------J I I, x = 24E714 I . I I 1 I. , y = 2590606' I II I 1 I I 1 Grnd. Elev.524.0 1 ~I , 1 36 31 1 32 \Ls(prop. Loc.) 1 34 I·~I 35 I I 'I' ~I °1 I 1 +- I . 402' 1 m I ;1. 1 . ITI2N ¡- I --i-9-~--¡-tl-iTIIN I I'''': I .~, I I I Q I I I~' I I 6 I 5 I 4 I 3 Æ, 2 I 1 I I I ·~I I ~------i------~-------~------~-----t~------~ I I 1 I I . I 1 I , I 11...1 I I I I I :;<1 , I 12 I 7 1 8 I 9 I 10 .gl II 1 I 'I I I~I I ~-____J______l______l_____J_____~l-_----J SCALE: I" = I MILE CERTIFICATE OF SURVEYOR I hereby certify that I am properly registered and I icensed to practice land surveying in the State of Alaska and that this plat represents a location survey made by me or under my supervision, and that all dimensions and other deta i Is are correct. MARCH I, 1973 Date / /-/7 / ./' ~ /:::.// ~ :q....--: --A7......~'""-.4t:-//. / SURVEyg:R/'/' LEGEND S RECOVERED A.D.L. MONUMENT SET UNDER G.S.C. 1968 (PLAT UNAPPROVED AS OF THIS DATE) CONFIDENTIAL """'\L. --t. of A( :-., ~~ ........... 4.f'\ t. '..l.r .. .. u~, 11',.-;:0; .. .. r . II' -J .' .. '9 l :* {49!1i' ..~. * ~. ...... ....... ..... ..... ... · ....~. ... .... 7~ ~" 1758-S . .. ., ···t~ ~~.. f~<Â·..~/S,.t~··O· ~~ .. -T/{lJ ..........r:-( _ ',,,, SUR'4~~" ,,,,,,,~,....... REVISED: NEW LOCATION LONG LAKE UNIT No.1 Located in SEI/4 OF SURVEYED SEC.32 TI2N. RI2W. S.M. ALASKA Surveyed for T EX ACO INC. Surveyed by F. M. LI N D SEY 8 ASSOC. LAND B HYDROGRAPHIC SURVEYO'RS 2502 West Northern Lights Boulevard Box 4 -081 Anchorage Alaska Aurora Logging Program L~ LecÞ- / Subject: Aurora Logging Program Date: Tue, 22 Apr 2003 15:16:16 -0800 From: duane vaagen <duane@fairweather.com> To: "Steve Davies (steve_davies@admin.state.ak.us)" <steve_davies@admin.state.ak.us> Steve: Attached are files as promised. The 2003 Wireline spreadsheet contains the proposed logging suites for each well, which are tabbed as additional spreadsheets in the file. Please do not hesitate to call with any questions or concerns. Duane Vaagen . Project Engineer Fairweather E&P Services, Inc. d uane@fairweather.com Office: (907)258-3446 Cell: (907)240-1107 .. .."..'..'.'.m^'v..... ~.,",......""'_,,,........_·_ww... ..Wvvw...y~~..."..',...,v"....~¥"y..~y~".,.¥~~~y...vY~h~y..,.,~."=.,,,..,,_¥y..y~~_~~.v_~¥~~.._~w.~~_¥¥~~w...y"'_¥~_~___¥¥~~__u··w,,,~·,~.,,'w¥~~,·.·~..····~~~· , i Name: 2003 Wireline Logging Program.xls '~2003 Wireline Logging Program.xlsj Type: Microsoft Excel Worksheet (application/vnd.ms-excel): .."..,__,_.. ...... ....,J .~n. co_d.~~:~~.~.(:ji...,.,..._..__~",.._"",.,., .,...,.",_,,,._, . W",,, V'~""~~~""'~".,,"Y""_"w"'W'"" m'Y""~~UW~"" v, ,_,~'.m _WWWH ·¥v.......v."wwv.~. _V' H' _~,.,~v_w. I Name: 2003 Mudlogging Program.xls ~2003 Mudlogging Program.xls Type: Microsoft Excel Worksheet (applicationlvnd.ms-excel)I ~.J~~~~~i~~: base64 Log Run CH1 Depths Hole/Casing Surface-4850' 7" l' It/rt<. ~/.~ S'7}? ~ 'ð 3ÇQ) A1l:>. ¿6I.J USIT/CCUGR CHFR? RST Long Lake #1 Re-Entry Tools E-Mail PDS/LAS Aurora Gas, LLC Prints Film/Sepia Digital 8 1 1-DLlS/PDS (CD) 7 -LAS/PDS (Disk) . . Interval Mudloggers Sample Catchers Sample Frequency FID Gas Detection Lithology Description PVT Monitoring Flow Monitoring Rig Function Monitoring Cuttings Show Report Generation Daily Log & Report Final Log & Report Sepia or Film Digital Camp Accommodations Equipment Transportation Nicolai Ck 9 200-620' 620-2300' 2 2 As Needed As Needed 30' 10' Yes Yes Yes Yes Yes Yes Yes Yes ? ? 1-UnwashedlWet; 3-Washed/Dry As Needed? ¡ As Needed? E-mail, fax or FTP 8 8 1 1 8 (CD) Provided by Aurora Provided by Aurora 2003 Program Mudlogging Requirements Proposed Logging Program A: ~¥,¡;t1 ~hv:,.. ~ , / Iì '77> ~ sçÇO /4'.t> Long Lake 1/ Lone Ck 3 3052-4653" 200-1000' 1000-2900' 1 Not Needed None Yes No Yes Yes ? None None E-mail, fax or FTP 8 1 8 (CD) Provided by Aurora Provided by Aurora 2 2 As Needed As Needed 30' 10' Yes Yes Yes Yes Yes Yes Yes Yes ? ? 1-UnwashedlWet, 3-Washed/Dry As Needed? 1 As Needed? E-mail, fax or FTP 8 8 1 1 8 (CD) Provided by Aurora Provided by Aurora Aurora Gas, LLC West Moquawkie 1 2515-3550' 2 Not Needed None Yes No Yes Yes ? None None E-mail, fax or FTP 8 1 8 (CD) Provided by Aurora Provided by Aurora Kaloa 2 200-1050' 1050-3700' 2 2 As Needed As Needed 30' 10' Yes Yes Yes Yes Yes Yes Yes Yes ? ? 1-UnwashedlWet. 3-Washed/Dry As Needed? ¡ As Needed? E-mail, fax or FTP 8 8 1 1 8 (CD) Provided by Aurora Provided by Aurora Nicolai Ck 7 200-750' 750-2750' 2 2 As Needed As Nee. 30' 10' Yes Yes Yes Yes Yes Yes Yes Yes ? ? 1-UnwashedlWet, 3-Washed/Dry As Needed? ¡ As Needed? E-mail, fax or FTP 8 8 1 1 8 (CD) Provided by Aurora Provided by Aurora . 4/23/2003 2003 Mudlogging Program.xls Sent By: AURORA#POWER; 7139771347; Oct-28-03 4:15PM; e Page 1 e : . : _...",.,,\~ j..i~~.':"'" ··.um· ~a ¡,...':.. ,\' ......:t. ..... . ,1"-' .1. ~'!if Gas, LLC ...N····_._ 10333 RIchmond, Sul·te 710 HouRon,Texas77042 Phone:713~977-5799 Fax: 713-917-1347 Fax Transmittal Form ---~;;r J_ _. TO~ ~~ ..\....... ' .'..",1". '\"'-, I ~..... From: ,-----....... n. Dat.~ Phone: Pas··: ~~ .:r.., F..x: ~e'~~i- ¡)Q7 cc: o Urgent 0 For Ravlew :0 .....s. Comment 0 PI.... R..-Iy 1:3 Plea.. Recycl. Menage. /b-r-- c-- ~ .~: '1~; ~ tw ¡ro &. c <. ~-...I IJ~s 1 ~ , ~ f- ð"w-- ~ 11 r3 ¡: ) u ^ ß "~~.JfI!''; h ~d ~ ~ ~ ðNYL, Jµ ~.~. fk~1~~r~/~~ ~ (Á) ¡¡., /rÐ'~t ~ 1""') ~ ~ ~ ~ . · ~ w-Ji ~ ~ ~ if ~ -þ r¡: ;J~:; NOTE: The Inf<>tm"'" oontallled In thl, ... ~ """"""""I ordJOt prMIegod. Thl' fax " ....,ded "" the ;.¡. :::6 indlv~· ual named above. If the reader of this traf\snilttal page is oot the Intended recipient or a representative of the intend£!d recipient, yw are hereby notified that any review, dissemInation, distribution, orcopy1ng of this fax or the information cootalried herein is prohibited, If you have received this fax In error, please Irnmedlately notify the Set'lder by telephone and réturn this fax to the :¡ender at the î;lddress above. . . Sent By: AURORAUPOWER; 7139771347; Oct-28-03 4:16PM; Page 2/5 ........,.., .:. . .. STATeöFALÄSKÄ,e ALASK~lAND GAS CONSERVATION C~MISSION D~eSiGItIATIQNOF OPERATOR : ~ ~º~?~~?O Aurora. Gii$ t' 'LLC, , ..' ,'. 10333 Ric~dÁWi1¡}e '" ! ,.., ' ,Suite no'!":' ;,. . " Houston'" . texas 77042' "..,'.." "" , . ~,. , , , , " " , 2. Notí~e'i5 ~eby giveI' of a designation of operalõ~~ip f~r ihe~'~'~~ propèrtyde1Ì~bèd be~: ~ '.. ... I,-\-/'.¡:""·--A'· ","~"" 1. Nø~lftd Ái:kI~~5¡'; of CXÝn&r: ....' . .' ,'. d... :'!'::' '.' " " . .......... ......... I.egal dawiptlon of property: 1\DIr-3a~203 See Exhibit "A" Attached hereto for ADJ:¡ Lease 389203 .. .,...........,....' , " ,'<,.::~.l:~~·:"~li."~ .wj;·,;i. ii:;:,· ' ":'" , .' . ..: ~ ¡: ~"H' OCT 2 3 2{'¡()3; ¡ )J J; i~~ ",. ,. ) ''''d', j . , " i" Propel1y plat altachedO ; \"..,". . ",", " . 3, Nttrnp. and Addres5 ot Desîgnated O~~rator: ". '.A\'Iroia Gas,LLC , ',: ;: 1-(}333 Ridhttidnd Avenue, H9uston~.Texas 77042 SUite 710 4. EflectJve Dale of Designaüon; I, .. July 1,. ·2Ò03 ,. ~::"~¿~.rty......~::::;;:=~~_=~__ PñnlèdN&me Randall D~ Jonas ~ CPL~. TltieManageI" Land and ~~~tia~ions Date July 28, Title _~1tl1a~r, Approved: ..À- ............, ....... n. Approved: ~.",.".""..,..,....~..., . C~sslo(le¡' .......................... ....... ........ .........". (Requl~$ approval by two CommlS$I~O(ts) ForIT\ 10-411 Rc...IsCld 212003 ,...........'..\.... ...........\'. "'........-. Submilln duplicate Sent By: AURORA#POWER; 7139771347; Oct-28-03 4:17PM; e V Page 3/5 e V ',' .;. . EXHIBIT .. A tþ ATTACHED HERETOiAND PART·OF THAT CERTAIN CHANGE OF OPERATORS HIP REGARDING ASSIGNMENT DATEDEFFBCTNE JULY 1) 2003 BETWEEN B.B.1., INC.) AS'ASSIGNOR, AND AURORA GAS. LLC, AS ASSIGNEE. APL-389203. compqsing 161.00 acres, more or less) being Section 18, Unsurveyed, Fractional, SE4¡ excluding that portion of AA-8426 within this Section leaving 124.0 acres; Section' 9, UnsurVeyed, Fractional, NE4, E2NW4, excluding that portion of AA-8426 within this Section leaving 43.0 acres. This Lease contains a total of 161.0acn.'1í~n1ore orles5~ <tHiin TllN,Rr2W;SéWatdMèridîáft~·tmi.rded~'but ADL-389203is s~~bject to it )y1cmomndum ofLea,se.dJltcd January 25, 2000 between the State of Alaska, Division of¢m & Gas, and Bscopeta Production-Alaska; Inc., recorded on Apri120. 2000 at VoJumei3621, Page 874, Anchorage Recording District. 8 Sent By: AURORA#POWER; - ,. Narne and Audr$u of Owner; Oct-28-03 4:17PM; ·e· .... e ..: : STATE OF AlASKA ""'" ALASK)f6J~ AND GAS CQNSERV ArrON Ç~MISSION DESIGNA TIO:N: 'OF OPERAtOR 2QMC 25;020 7139771347; Page 4/5 ,"" ( Aurora . ~s, LLC 10333 Riþhmond Avenue Suite 710 Houston,itexas77042 . .... \, ..........-..-,... _VI" 2. NçtÎce Is h8tÐby given of II designlilöOfI 01 Opefalotahlp fot the 011 and gas proplilrt.y·~ béIow: Legal descrïp.tion of property; ADL-3ÌJ9202 See !xhibit "A" Attached hereto for ADL Lease 389202 property ptal allac/l8<lD . ._,-to...... '..LA.-,..... 3. Name and Address of ~gtlated OporalDr: Aurora Gas, LLC ¡I0333 RiChl'rlond AVenue, SUite 710 Ìiouston, Texas 77042' of Efføctlve Date of Designäiion: JUly 1, 2003 . .~. \ ""'---\-. -.... .__......~.- ..:=~~1~-~·;·""'=:-:;~~·_~' PrÍntedNaffie Ran~_all D. Jones ,. crt me. Manager, Land and ~tiat1ons _ . . .. ..".. " \_~. u. ....·...·1.1..--'···....·· . 6, "he Ownár hdlJbY certifies Nt the fOf!lgolng III ~ and correct: Signature léa,.~LtII ~ Date July 28, 2003, PlWed Name Randall D. ~es I cm1 Thle *nl:iger, Appfoved; - ..... ......;. Commissior* \''''.,' 7. ApPfOVl¡ld; ~.... Approved; ~. ,..,....,"-. : ~.., +r (~~uires ~p)l'l)val by two Commissioners) ... r-otm 10.411 Revl~d 2/2003 Sent By: AURORA#POWER; ..... .~ " e '~ 7139771347; Oct-28-03 4:17PM; ,·e :~ Page 5/5 EXHmrr (f Is.. .. ATTACHED HERETO AND PART OF THAT CERTAIN CHANGE OF OPERATORSHIP REGARDING ASSIGNMENT DATED EFFECTIVE JULY 1,2003 BETWEEN B.BJ.~ INC.. AS¡ASSIGNOR, AND AURORA GAS, LLC~ AS ASSIGNEE. APL-3~9202. comprising 2,501.35 acres, more or less, being Section 5, Surveyed, Fractional, N2, S W 4, Tract A, as shown on Alaska State Supplemental Cadastral Survey Plat No. 73-54. 602.51 acres;: Section 6, Surveyed! All, 609.78 acres; Section 7, Surveyed, All, 611.41 aCI"e¡¡; ,. Section 8, Survey~. Ii'raçtjQJ),d.S2~ Traçt~ A,BªºQ, C. ~ shÓwnÓIÎAiåSkå Strite Suppkinental cådåSki S'tlrveYPlåtNö.1j~54,·51s.73' _; .',' ",". Meanderahle Water Bodies being the bed ofCongahbuna Lake located within Sections S' and 8 comprising 101.92 acrqs. This Lease contains a.total of2~SOl.35 acres. more or less, all in TUN, R12W, SeWard Meridian Alask8; 'unrecorded, but ADL-3$9~02 is subject to a Memorandum of; Lease dated January 25; 2000 between the State of Alaska, Division of Oil & Gas, and ascopeta Production~A.1Mka; Inc" recorded on April 20, 2000 at V oJumo 3621, Page 874, Anchorage Recording District. " ......".. 7 UNITED STATES POSTAL SERVICE .., ! First-Class Mail Postage&Ï"ë-és Paid USPS",···· Permit Nò:"Gc10 · Sender: Please print ýourné3!TIe, address, and ZIP+4 in this box'·- ~~ ',"' &~. O~" ,ff,'/ q'I. '/~ ,qt,- . f..,,'>'- 'J State. of Alaska ¥"q> 0,. I J! ~ AK Oil & Gas Conservation Commissiorf <p /> JJ ,:::>. <... '() 333 West 7th Avenue v<Ì.r r> ç0~) Anchorage Alaska 99501 11;('11 <"01 ' ...) 7(;'1" ~ /> ~. <"0 .(ìf! "J}0. . ¡tJ'.r . 101/ I ! ¡, ,1,11111, /11/1111' J II II ¡I, I ,I , I,ll, i ,I , , 1111, , ,II, II 11,1 !i/¿/¿7 1"7~~;:; ¿??¿J3· O(;?ð'/':X¿)3·C)70/~YJ3- ()7 / SENDER: COMPLETE THIS SECTION · Complete items 1; 2, -and 3. Also èoniplete. item 4 if Restricted DeliverY is desired. · Print your name and address on the reverse so that we can return the card to you. · Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: Ed //ìc'/?" . at/It? /cZ ç c?? /V729 d'/ ..3Yd/1ve #.??# O;/k!£ ¡JI) C195¿? / 3. SelVice Type ;SCertified Mail o Registered o Insured Mail o Express Mail o Return Receipt for Merchandise o C.O.D. 4. Restricted Delivery? (Extra Fee) ~s 2. Article ".. .-.......... Ir""..,-.I I..",," ~ðf"'l,;,.a lohon 7002 3150 0005 3521 1188 PS Form 3811, July 1999 Domestic Return Receipt 102595-00-M-0952 c I¡,-,. . . . ~~~r! LID} ~~~~~~~ AI,ASIiA ORAND GAS CONSERVATION COMMISSION . / FRANK H. MURKOWSKI. GOVERNOR / 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 CERTIFIED RESTRICTED DELIVERY 7002 3150 0005 3521 1188 Mr. Ed Jones Vice President Aurora Gas, LLC 1029 West 3rd Avenue, Suite 220 Anchorage, AK 99501 In Re: Long Lake # 1 West Moquawkie #1 Kaloa #2 (203-068) -« (203-070) (203-071 ) Dear Mr. Jones: On April 9, 2003 the Alaska Oil and Gas Conservation Commission ("Commission") received 5 Permit to Drill ("PTD") applications for planned well activities on Aurora properties on the West Side of Cook Inlet. When Commission staff began reviewing the permits for completeness and compliance with our regulations (20 AAC 25), a number of deficiencies were identified in each permit. " Email messages were sent to Mr. Duane Vaagan on April 22 (for operations and engineering) and Mr. Randy Jones on April 18 and April 21 (for land and ownership) listing the deficiencies and requesting their action to complete the PTD applications and allow the Commission to process them in a timely manner. Mr. Vaagan responded on April 30, providing the requested operations and engineering information. The land and ownership information has been slow in arriving. Sufficien t information was ultimately received in mid-June to allow Lone Creek #3 (PTD #203-062) to be approved on June 25th and Mobil Moquawkie # 1 (PTD #203-068) to be approved on July 31st. However, several land and ownership items are still outstanding on the remaining applications. Mr. Jones was again contacted by phone on June 24, and an updated listing of the PTD application deficiencies was sent to him byemail. A copy of that deficiency list is attached. Mr. Ed Jones October 16, 2003 Page 20f2 Despite repeated written and telephone requests for the needed information and documents to complete the PTD applications for Long Lake #1, West Moquawkie #1, and Kaloa #2, these application remain incomplete. This is unacceptable. Be advised, that if the Commission does not receive the necessary information to complete the PTD application packages for the subject wells by November 3, 2003, the applications will be cancelled. DATED at Anchorage, Alaska and dated October 16, 2003. ~ ~ÞÄ Randy jdriCh Commissioner By Order of the Commission U.S. Postal ServiceTM CERTIFÎED MAILM RECEIPT , . II - , 'J: ., . 1.' I ;,. . . ;,. . . .... t:O t:O r-'I r-'I II'JiI.nl~'i:I,'..rll¡'I¡llr'l¡r'JI.'ir1(I'JII"'/I:J'¡'"<:I:I....../'/...".J.!.J!,:¡.JI'M M ~ ^ W ",H nJ '~'AI ~ k Lr . . ~,,! ' rrJ . Postage $ ~7! 1 '. i, I.,;! ¡ I~ T Ãf:>.. ._ _J~'(" t5\S'):- ~ <~~~ f."-i~;; t OOTìt~\ '/ 'J~ <oy I:J Restricted Delivery Fee -1 S..--cC)' '.'.'.:i.' "~Ii)t;.' "oF·¡'.··· IIT".'.V:-¡::- ~ Lr (Endorsement Required) 'i... '.'. . ", r. h " . ; '-' r-'I /p.; .......... '''/ rrJ Total Postage & Fees $ r;',:i5 :¡.Oii~ nJ ~ -:::~:~cI...JoiJe~S...._.:m"_'__""'__'_'_h__'_h' .~::::'";:::J:[.&~~~.t(~e"..... :I-"~'J/"I<;:Io¡1 I' I I GZ-- 9 :"~t"'l"'*."~I'''''''~'''''k ,.;;f/ UNITED STì1TES POSTAL SERVICE. ***** WELCOME TO ***** 5TH AVENUE POSTAL STORE ANCHORAGE, AK 99501-2351 10/16/03 02:28PM Store USPS Trans 46 Wkstn sys5002 Cashier KTXKF5 Cashier's Name KENNETH Stock Unit Id WINKENNETH PO Phone Number 800-275-8777 USPS ~ 0203150535 1. First Class 0.23 Destination: 99501 Weight: 1.200l Postage Type: PVI Affix. Post.: -7.92 Total Cost: 8.15 Base Rate: 0.60 SERVICES Certified Mail 2.30 70023150000535211188 Restricted Delivery 3.50 Return Receipt 1.75 Subtotal 0.23 Total 0.23 Cash 0.23 Number of Items Sold: We here at the Postal Store appreciate you as our customer see yoU again soon . . Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information / Needs Updated October 16, 2003 Long Lake #1: (Pennit to Drill number 203-068) expected spud date was May 20,2003. a. Designation of Operator and Notice of Change of Ownership fonns (Fonns . 10-411 and 10-417, respectively) must be submitted to AOGCC for this lease, \! '1> which is Mental Health Trust Lease 9300023. These fonns are located on f ¡;;i'? AOGCC's website at: http://www.aogcc.alaska.gov/fonns/fonnscat.htm. i't \t' Pertinent regulations are attached to the end ofthis letter. b. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.aogcc.àlaska.gov/Regu1ations/art199.htm. A spacing exception is not needed to drill a well. but approval to perforate. test. and produce that well is contingent upon the Commission's issuance of a conservation order approving the spacing exception. By drilling a well without a spacing exception. Aurora assumes the liability of any protest to the spacing exception that may occur. West Moquawkie #1: (pennit to Drill number 203-070) expected spud date was June 20,2003. a. Designation of Operator and Notice of Change of Ownership fonns have not been filed for this lease, which is C-61389. b. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). Alaska Oil and Gas Conservation Commission 1 . . Kaloa #2: Pennit to Drill number 203-071, expected spud date was July 1, 2003. a. Original Designation of Operator and Notice of Change of Ownership fonns have not been submitted for this lease, which is C-61393. The Commission received faxed copies of the fonns on August 7, 2003. Original copies were requested ÍÌom Mr. Andy Clifford on August 18, 2003, but they were never provided. Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only ifthe owner is the same and the landowner is the same on both sides of the line; (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing ÍÌom the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. Alaska Oil and Gas Conservation Commission 2 . . 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (ponn 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator fonn, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025. The commission's acceptance ofthe designated operator's bond constitutes the release of the fonner operator's bonding obligation for the property indicated on the Designation of Operator fonn. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Fonn 10-417). ------------------------------------------------------------------------------------------------------------ Alaska Oil and Gas Conservation Commission 3 l\.t:: ll'wu; ¿vv-' rrupulioo \..-UUK lTIJer .öasJ...nons : AOOmOnaJ lTIIOrrrumon I J'IeeasJ e e Subject: Re: [Fwd: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications? Additional Information / Needs] Date: Mon, 07 Ju12003 15:55:57 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: Ray Eastlack <ray@fairweather.com> Ray, You're welcome. Let me know if I can help further. Steve Davies Ray Eastlack wrote: > Steve, > > We recently received the C Plan exemption from Lydia Minor. Thanks for your > assistance. > > Ray > > -----Original Message----- > From: Steve Davies [mailto:steve davies@admin.state.ak.us] > Sent: 07 July, 2003 10:53 AM > To: Ray Eastlack > Subject: [Fwd: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill > Applications ? Additional Information / Needs] > > Ray, > > FYI, I provided the following update of my "Addi tional Information / > Needs" listing to Randy Jones on June 24, 2003. > > Let me know if there is anything further I can do. > > Steve Davies > Petroleum Geologist > Alaska Oil and Gas Conservation Commission > Telephone: (907) 793-1224 > Fax: (907) 276-7542 > steve_davies@admin.state.ak.us 2003 Proposed Cook Inlet Basin Projects...ations - Additional Infonnation / Needs I e e Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Tue, 24 Jun 2003 12:19:46 -0800 From: steve _ davies@admin.state.ak.us To: Randy Jones <tjones@aurorapower.com>, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Randy, As follow-up to our conversation today, I would like to send my listing of needed additional information concerning the permit to drill applications submitted to the Commission as part of Aurora's 2003 proposed Cook Inlet Basin projects. This is the original listing I sent you via email on April 21, 2003, annotated with comments about concerns/questions that have been answered, and those items that are still outstanding. If you have any questions, please call me. Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us l~.v~m_"m^""__,,,,^____."__'''m..,,_~,~,._~,_,__.,..,,_..,,__'m_,__,~w___,,__~_,_.,__~_^____.~__."_'m~'_^_"',._~_~~__~,.,_,~.,__.._m.,_~,~,mm_~',~.~'·',_,"_~A~·_m""m"^·"m_m_'j ~1 IÆ:I ~~"'~"--""Y-~"~"""~'~" m ~~,,-- ~-"",-",,,-~--., ! Name: 1_030623_Aurora_ W _CI_Proj( 030623 Aurora W CI Project Deficiencies List.doci Type: WINWORD File (application/rr ¡ Encoding: base64 ,,_ ~ v~'''~''''_' ~_._~.~_~_" .,,"'~~. ,~"~~~~_~·~v_~v~·,,v~..~ y.,_~_~~v.._,~.", _"¥~~"'~~v"" ~. ~~_,~",,~v¥~ ~ ~,,~. _.~~ ~"-' e e Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information I Needs Updated June 24, 2003 Lone Creek #3: Pernlit to Drill number 203-062, expected spud date is May 15,2003. AOGCC senior staff submitted the application for pennit to drill to Commissioners for approval on 6/24/03. a.Logging program is not specified in ,vell pennit application. Received 4/22/03. b.Nced deternlination from Glen Gray as to whether an ACMP Consi::;tency Dctennination is needed. ACMP detennination may be needed (Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). ACMP detenninations will no longer delay approval and issuance of a pennit to drill from the Commission. However, a pennit to drill does not exempt you from obtaining additional pennits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required pennits and approvals have been issued. Long Lake #1: Pennit to Drill number 203-068, expected spud date is May 20,2003. a. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.state.ak.us/locaVakpages/ADMIN/ogc/artI99.htm. b. Designation of Operator and Notice of Change of Ownership fonns must be submitted to AOGCC. I thoroughly searched AOGCC's files, and Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. These fonns can be obtained from AOGCC's web site at: http://www.state.ak.us/locaVakpages/ADMIN/ogc/homeogc.htm. Pertinent regulations are attached to the end of this letter. My notes concerning ownership and operatorship records for the Moquawkie area that are on file at AOGCC are also attached to the end of this letter. Alaska Oil and Gas Conservation Commission 1 e e c. C-Plan exemption determination needed from AOGCC. I am awaiting a request letter from ADEC. Submitted recommendation to Lydia Miner, Alaska Dept of Environmental Consrvation on June 20, 2003. d.Logging program is not specified in well permit application.Received 4/22/03. d. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). Mobil Moquawkie #1: Permit to Drill number 203-069, expected spud date is June 1, 2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease (see write-up in item "b"under Long Lake #1, above). e. Logging program is not specified in well pelmit application.Received 4/22/03. b. c. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). c. Spacing exception not required as long as re-completion operations in Moquawkie #1 are restricted to intervals above 2900' MD. Moquawkie #1 is 1704' from the nearest lease line, which exceeds the required 1500' setback distance from property lines for a gas well. Moquawkie #1 is 2500' away from, and in same section as, Simpco Moquawkie 2 (178-088), a shut-in gas well capable of production. Perforations in Simpco Moquawkie 2 are open in Tyonek Fm. from 5666' - 5708' MD and 5880' - 5945' MD. Perforations in shallower intervals have all reportedly been squeezed. Since the Moquawkie #1 re-completion will be in the Moquawkie SS member between 2735' - 2874' MD (an interval about 2800'shallower) a spacing exception is not required as long as re-completion operations are restricted to 2900' MD and shallower. West Moquawkie #1: Permit to Drill number 203-070, expected spud date is June 20, 2003. a. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). b. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. (see write-up in item "b"under Long Lake #1, above) f. Logging program iG not specified in well pen-nit application. Received 4/22/03. c. ACMP not needed «Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). Kaloa #2: Permit to Drill number 203-071, expected spud date is July 1, 2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. (see write-up in item "b"under Long Lake #1, above) Alaska Oil and Gas Conservation Commission 2 e e b. Logging program is not specified in wen pennit appliciltion.Received 4/22/03. c. Need detennination from Glen Gray as to whether an ACMP Consistency Determination is needed.ACMP detennination may be needed (Glenn Gray, 6/6/03 email to Tom Maunder, AOGCC). ACMP detenninations will no longer delay approval and issuance of a pennit to drill from the Commission. However, a pennit to drill does not exempt you from obtaining additional pennits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required pennits and approvals have been issued. d. Spacing exception is not required. Although nearby well Simpco Kaloa 1 is perforated in the same interval and is classified as shut-in, it is not capable of producing in its current condition (bridge plug set at 3552' MD, cement on top ofthe bridge plug, plus two plugs in casing at 2705' MD and 900' MD). Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us Alaska Oil and Gas Conservation Commission 3 Au¡>ra C.,;s,.J.,LC Permit to Drill Deficiencies Letter e e Subject: Aurora Gas, LLC Permit to Drill Deficiencies Letter Date: Mon, 23 Jun 2003 11 :02:25 -0800 From: Steve Davies <steve _ davies@admin.state.ak.us> To: ray@fairweather.com Ray: As we discussed on Friday, attached is the email that I sent to Randy Jones in April which outlines needs or deficiencies for each of the permit to drill applications submitted by Aurora. Please call or email me if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve_davies@admin.state.ak.us ------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------ Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Mon, 21 Apr 2003 08:52:49 -0800 From: Steve Davies <steve davies@admin.state.ak.us> To: rjones@aurorapower.com, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom maunder@admin.state.ak.us> Gentlemen: This is a re-transmission of an email sent on Friday. I received a transmission error notice on the copy sent to Randy Jones. I phoned Aurora Power to confrim the email address, and it appears to be correct. So, I'll try again and follow-up with a phone call tomorrow morning to ensure receipt (I understand Randy is out of the office today) . Also, the C-Plan exemption determination needed from AOGCC applies to each of these proposed projects, not just Long Lake #1. I am awaiting a request letter before I undertake a review. Thanks, Steve Davies ----------------------------------------------------------------------- Gentlemen: The attached notes are my comments and needs for your permit to drill applications for Aurora's 2003 Cook Inlet Basin program. Please call or email if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission AtiiPra (j~s,..LLC Permit to Drill Deficiencies Letter tit Telephone: (907) 793 -1224 Fax: (907) 276-7542 steve_davies@admin.state.ak.us e ~--~--~---~~ ·Y"'r.~···-__~___~·_V'__=-'__~'_~ '.¥..---..._...~- --~""-~'-------~""""'~~~-'--~--" ,..._~~ .._... _v~_v~·_~~ -~--,--- ._~,..__...._,_.~- .- -"-~ ----... 1'larne:0304l8_}\urora_VV_CI_Projec~ '~0304l8 }\urora VV CI Project Deficiencies Emai1.doc Type: VVINVVORD File (application/rn '_~~_~_m ~m_~'_~ .. __._~__ _ _ '~~--'-7 _~.nco~!_~lE.?~~?4 _"~'_~,_. ~__, _ .~~,__,_ CS~lr ,-r~ .~-)' II ìll, ¡ v. ¡ ¡ ¡ \. ,J' ¡ L, ~J id ""...l "'" "-=---"" . (ill~ e ,.... " r--' ~ rn fi,ì ¡ \. ¡ w ' A' ¡A\ I' If\.\ {::\~ I if ;1\\ lü\ ! 'WI ì ,\ ¡.;..., J ,\ ' I. , . \ , UU . L., LJ\J (}v L u LJU FRANK H. MURKOWSKI, GOVERNOR AI,ASKA OIL AND GAS CONSERVATION COMMISSION 333 W. 7'" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279·1433 FAX (907) 276-7542 June 18, 2003 Ms. Lydia Miner Section Manager Exploration, Production and Refineries Alaska Department of Environmental Conservation 555 Cordova Street Anchorage, AK 99501 RE: C-Plan Exemption for Planned Aurora Gas, LLC 2003 Activities on the West Side of Cook Inlet Dear Ms. Miner: The Alaska Oil and Gas Conservation Commission ("the Commission") received your request for a formal determination regarding an exemption from Oil Discharge Prevention and Contingency Plan requirements for wells and re- completions planned by Aurora Gas, LLC ("Aurora") on the west side of Cook Inlet during 2003. In order to evaluate Aurora's request for an exemption from the oil spill contingency plan requirements for this program, I have reviewed all of the information submitted by Aurora, and the Commission's well files, log files, production records, and records associated with Conservation Order No. 478 (spacing exception for the drilling and testing of Nicolai Creek Unit wells #18, #2 and #9). Recommendation Based on a detailed examination of Commission records, it is unlikely that any of Aurora's proposed re-completions or new wells will encounter oil or oil-bearing formations in their interval of interest, which includes the Beluga Formation and shallow portions of the Tyonek Formation. I recommend approval of the requested exemption from Oil Discharge Prevention and Contingency Plan requirements for Aurora's planned 2003 activities on the west side of Cook Inlet, '. e e "¡, including the Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, Texaco Long Lake Unit #1, Nicolai Creek Unit #7, Nicolai Creek Unit #9, Lone Creek #3, and Kaloa #2 wells, and their associated gas production facility and pipeline. A detailed discussion for each of Aurora's planned activities is presented below. All depths presented are measured depths, unless otherwise noted. Moquawkie Area Wells Exemptions are being sought for re-entry, testing, and production of five existing wells in the Moquawkie area: Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, and Long Lake Unit #1 to evaluate the economics of gas production. All of these are exploratory wells drilled between 1965 and 1978 in search of oil. The four Moquawkie wells mentioned above are clustered on the same structure within a narrow, north-south trending band that is about 1 mile long and %-mile wide (see map, below). Long Lake Unit #1 is located on a separate structure approximately 4 miles to the west. T12N.R12W I I ~.. ¡ ! T12N,R11W I Mobil Moquawkie 1 . ì .' " Moquawkie Simpco Moquawkie _ .. 2 2 311 Simpco E. ~oquaWkie 1 ':.: ¡ .- Simpco Moquawkie 1 1 ¡ Moquawkie Field 36 ¡ I . Long Lake Unit 1 W. Moquawkie 1 .. 16 T yonek Reserve 1 o 1 mile '. Moquawkie 44-8 ·~.T}oOnek Re~rve B 1 I I ,', Slmpco KaldaChabun1 1 Scale !-- Moquawkie Basemap MOQuawkie Wells Commission records do not show any indications of oil in Simpco Moquawkie #1 and Simpco Moquawkie #2, which are, respectively, the shallowest and the deepest wells on this portion of the Moquawkie structure. Oil indicators were recorded on mud logs from the other two wells, Mobil Moquawkie #1 and West 2 e e Moquawkie #1. All of these wells are vertical through the interval of interest, which includes the Beluga Formation and the upper Tyonek Formation. In Mobil Moquawkie #1, three very poor oil shows are noted on the mud log between 2700' and 2810' (-2330' and -2440' TVD subsea), which is the lowest portion of Aurora's interval of interest in this well. Descriptions associated with these very poor shows indicate the oil is residual, and is not live, producible oil ("very few pieces gave dull fluorescence, faint dull gold cut, residual oil in argillaceous sand"). A drill stem test conducted across the interval containing two of these very poor shows yielded very little water and no oil. Mobil Moquawkie #1 was subsequently completed in this interval and produced 985 million cubic feet of gas with associated water from May of 1967 until February 1970, when the well was shut-in. No evidence of oil production has been found in Commission records for this well. The mud log from West Moquawkie #1 notes three "slight trace" oil shows between 2320' and 2580' (-1821' and -2081' TVO subsea). Mud log descriptions mention some dark brown oil stain or "tar stain" associated with a trace to 40% pale to light yellow sample fluorescence and weak to light yellow cut fluorescence, but there is no mention of white-light hydrocarbon cut or live oil. Sixty-six sidewall cores were recovered from the well, including 42 between 795' and 2520'. Detailed lithologic descriptions or laboratory analytical results are not present in the Commission's well file, but summary records for these sidewall . cores clearly state "no shows." The well was not tested (the Completion Report lists the well as "dry"), and it was immediately plugged and abandoned. lona lake Unit #1 This exploratory well was drilled, plugged, and abandoned by Texaco in 1973. Commission records do not show any indication of oil in the Beluga or Tyonek Formations within Long Lake Unit #1. The only indications of oil in the well are very poor shows marked on the mudlog in the Hemlock Formation from 5280' to 5290' (-4721 to -4731' TVO subsea), and in the West Foreland below 6655' (-6088' TVO subsea). The shallowest of these very poor shows occurs approximately 1700' below Aurora's interval of interest. Texaco plugged and abandoned Long Lake Unit #1 without testing. Summary for the MOQuawkie Area Wells The absence of oil in well tests or in regular production, the lack of oil shows in sidewall cores, and the very poor quality of all oil shows noted on mud logs indicate that Mobil Moquawkie #1, Simpco Moquawkie #1, West Moquawkie #1, Simpco Moquawkie #2, and Long Lake Unit #1 are not likely to produce oil from the Beluga or shallow Tyonek Formations. 3 .' e e ." Lone Creek #3 Well Lone Creek #3 is a proposed vertical, shallow gas well located to the northeast of, and on the same structure as, the Lone Creek #1 and #2 exploratory wells (see map, below). Lone Creek #1 is located high on the structure, while Lone Creek #2 is structurally lower, on the side of the structure. Both wells are vertical through Aurora's interval of interest. T12N,R11W 12 I Lone Creek 3 (proposed) F 13 18 ¡ 17 18 Lone Creek 1 ..- 24 19 20 21 25 Lone Creek 2 f 30 I 29 28 Lone Creek Basemap No oil indicators are marked on the mud logs across Aurora's proposed shallow development interval in Lone Creek #1 and #2. Lone Creek #1 tested only gas from this interval. Lone Creek #2 was plugged and abandoned without testing. Based on records from these offset wells, Lone Creek #3 is not likely to produce oil or encounter oil-bearing formations. Nicolai Creek Unit #7 and #9 Wells and Nicolai Creek Unit #1, #2 and #9 Facility The Nicolai Creek area wells are all clustered near the western shoreline of Cook Inlet. Aurora plans two shallow gas wells in this area, Nicolai Creek Unit #7 and #9. Aurora is also planning a production facility with associated pipeline to collect and process gas from the existing Nicolai Creek Unit #1 Band #2 wells, and the proposed #9 well. 4 ·- e e .' Several exploratory and development wells are located in the vicinity of this project area. Records and logs from Nicolai Creek State #1, #1 A, and Nicolai Creek Unit #1 B, #2, and #3 (see map, below) were examined. A time-structure map of the top of the Tyonek Formation in the Nicolai Creek Field is published in the Commission's 2002 Annual Report. This report can be accessed on the Internet at: http://www.state.ak.us/local/akpaqes/ADMIN/oqc/homeoqc.htm. Nicolai Creek State #1 and #1A; Nicolai Creek Unit #1B. #2. and #9 The proposed Nicolai Creek Unit #9 well, and the existing Nicolai Creek State #1, #1 A and Nicolai Creek Unit #1 Band #2 wells all penetrate the Beluga and shallow Tyonek Formations within the same reservoir block. Nicolai Creek State #1 is a 1965 exploratory well drilled, then subsequently plugged and abandoned, by Texaco. This well penetrates the Beluga and Tyonek Formations in one of the deepest portions of the fault block that also contains Nicolai Creek State #1 A, Nicolai Creek Unit #1 B, #2, and the proposed Nicolai Creek Unit #9 well. The Tyonek gas sands were peñorated and tested in Nicolai Creek State #1 between 3420' and 3630' (-3305' to -3505' TVD subsea) and they produced dry, clean gas with no associated oil. 24 Nicolai Ck U 3 *' 20 21! Nicolai Ck U 5 , ! .... ____.1.___ c N.iCOI:~=I~nit 7 (proposec) 22 Nicolai Creek Field 27 25 ] nNiColärCkUnj19 (proposed) ~~)\. / -- --------- ~Iai Ck St 1~ NI~a~J --- r Nicolai Ck St 1. .- ~ NicolaiCk Nicolai Ck U 6 U 4 33 . 36 31 ____ 32 34_ Nicolai Creek Basemap Oil shows in Nicolai Creek State #1 are restricted to the Hemlock Formation below 6025' (-5777' TVD subsea). These sands were tested, but according to the well file, showed "no oil accumulations." 5 e e Nicolai Creek State #1A, the first sidetrack of the #1 well, was drilled up-structure from the original #1 well bore. Commission records for #1 A report the shallowest oil indicator as being "solid hydrocarbon" (tar?) encountered between 5535' to 5550' (-5281' to -5295' TVD subsea) and 5620' to 5640' (-5360' to -5379' TVD subsea), which is over 1,500' below Aurora's interval of interest. Shallow Tyonek gas sands were produced in #1A between 3420' and 3630' (-3305' to -3505' TVD subsea). Commission records indicate this interval produced gas for only three months (December 1968 through February 1969), with no associated oil. The second sidetrack of the #1 well, Nicolai Creek Unit #1 B, was drilled up- structure of the #1 and #1A wells by Aurora in September of 2002. There are no oil indicators shown on the mud log or mentioned in lithologic descriptions contained in the final well report from the mud-logging contractor. Nicolai Creek Unit #9 is a proposed well intended to produce gas up-structure from the #1 B well in the same fault block. The final well in this fault block, Nicolai Creek Unit #2, was drilled by Texaco as an exploration well in 1966. No oil accumulations were encountered. Texaco tested a gas sand between 3270' and 3315' (-2733' to -2768 TVD subsea), with no mention of any associated oil or water. The well produced 52 million cubic feet of gas from September 1968 through October 1969, with no record of any associated oil production. It was re-entered and tested by Aurora during 2002, and flowed gas and water from shallow Tyonek Formation sands. No associated oil is noted in Aurora's test summary reports. In summary, Nicolai Creek State #1, #1A, and Nicolai Creek Unit #2 tested the down-dip portions of the reservoir block. Nicolai Creek Unit #1 Band #9 will produce gas from the up-dip portions of this same block. Neither #1, #1A, nor #2 have shown any indications of the presence of oil in the Beluga Formation or in the shallow portion of the Tyonek Formation. All of these wells tested or produced dry gas from shallow Tyonek sands with no indications of associated oil production. Therefore, it is highly unlikely that Nicolai Creek Unit #1 B or the proposed #9 well will produce oil or encounter oil-bearing formations. Nicolai Creek Unit #3 and Proposed Nicolai Creek Unit #7 The existing Nicolai Creek Unit #3 well and the proposed Nicolai Creek Unit #7 well will both penetrate the Beluga and shallow Tyonek Formations within the same reservoir block. Texaco drilled Nicolai Creek Unit #3 in 1967 as a Hemlock oil exploration well. The mud log for this vertical well shows only scattered, very poor oil indicators in the Hemlock Formation between 6600' and 7220' (-6400' and -7020' TVD subsea). Texaco did not test this Hemlock interval. The well was plugged back to 2522', and sands between 2000' and 2380' (-1800' and -2180' TVD subsea) were tested for gas. Reports from the test indicate production was dry gas, with 6 e e no associated oil. Texaco produced 893 million cubic feet of gas from the well between March 1967 and September 1977. Commission records indicate only gas was produced; they do not report any associated oil production. In 2001, Aurora tested Nicolai Creek Unit #3 in five intervals between 1900' and 2380' (-1700' and -2180' NO subsea). The well produced only gas, with no oil or water. The proposed #7 gas well is situated up-structure of #3 within the same fault block. Because the #3 well has shown no indications of the presence of oil in the Beluga Formation or the shallow Tyonek Formation, the proposed #7 well is not likely to produce oil or encounter oil-bearing formations. Summary for the Proposed Nicolai Creek Activities The absence of oil in test or regular production and the lack of significant oil shows in the shallow geologic section in Nicolai Creek State #1 and #1 A, Nicolai Creek Unit #1 B, #2, and #3 all indicate that the #1 B and the proposed #7 and #9 gas wells are not likely to encounter oil in, or produce oil from, the Beluga Formation or shallow portions of the Tyonek Formation. Production facilities associated with Nicolai Creek Unit #1 B, #2 and #9 also have little possibility of receiving oil from any of these wells. Kaloa #2 The proposed Kaloa #2 shallow gas well will be drilled approximately 20 feet from the existing Albert Kaloa #1 well, an oil exploration well drilled in 1967 by Pan American and completed in 1968. 16 15 14 13 Albert Kaloa Field 24/ 28 Albert Kaloa 1 "'P: Kaloa 2 (proposed) 27 Sinpco Kaioa 1° ./ T 11 N, R 12 W Kaloa Area Basemap 7 I e tit . . In 1970, Pan American perforated Albert Kaloa #1 between 3213' and 3403' (-2982' to -3172' TVD subsea) and flow-tested the well for a total of 29 hours. This test produced 13.4 million cubic feet of gas with "no significant liquid production during test." Gas samples from this test were dominantly methane, with only trace amounts of ethane, propane, and butane. According to Commission records, Albert Kaloa #1 produced 118 million cubic feet of gas from this interval during December 1970 and January 1971, with no recorded oil production. The well bore became plugged with "mud and sand," and was subsequently plugged and abandoned in 1974. The mud log from Albert Kaloa #1 reports 20% dull fluorescence with a slight solvent cut and residue at 3425' (-3194' TVD subsea), but the occurrence was not classified by the mud logging geologist as an oil show. The associated lithologic description does not mention any oil staining or the presence of live oil. Gas associated with this dull fluorescence consists only of methane. The next oil indicator noted on the mud log is a very poor show at 5875' (-5644' TVD subsea). The absence of oil in test or regular production and the lack of significant oil shows in the shallow geologic of the adjacent Albert Kaloa #1 well indicate that the proposed Kaloa #2 gas well is not likely to produce oil or encounter oil- bearing formations. Summary None of the well or production records examined suggest the possibility that oil will be encountered in, or produced from, any of the intervals that Aurora will drill, test, or produce in their proposed 2003 activities. An exemption from oil spill contingency plan requirements is appropriate for Aurora's proposed 2003 activities on the west side of Cook Inlet. Please contact me if you need additional information. Sincerely, ~ c····_ .-- ~ -~-_.-.-~ <- ------ Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission cc: Daniel Seamount, Jr., AOGCC Ray Eastlack, Fairweather Kaye Laughlin, ACMP 8 )NR... Oil and Gas Update e 3 e June 16, 2003 Pipeline System near Valdez. This facility provides the source for the Valdez Marine Terminal (VMT) raw water, potable and firewater needs. OPMP initiated this 30-day review on April 15, 2003 and issued the final determination on May 2,2003 [17 calendar days in review]. Contact: Kaye Laughlin. Pre-Application Stage Kuparuk River Rehabilitation Plan: ConocoPhillips Alaska, Inc. proposes to restore the East and West Channels of the Kuparuk River to their approximate condition prior the spine road development. Contact: Kaye Laughlin. Aurora Gas LLC Projects: Aurora Gas proposes to conduct exploration for gas on a number of sites and a development project at one site during the summer of2003. All ofthese projects are located onshore on the west of Cook Iniet. Exploration activities for five projects will be conducted ftom existing pads, and no 'permits are expected to trigger an ACMP consistency review (Long Lake No.1, Mobil Moquawkie No.1, Simpco Moquakie No.1, West Moquawkie No.1, and Simpco Moquawkie No.2). Three exploration projects would likely need an ACMP review (Nicolai Creek Unit No.7, Lone Creek No.3, and Kaloa No.2). A production facility including installation of a four-inch pipeline is proposed near the Shirleyville runway. OPMP sponsored a pre-application meeting on April 17, 2003. Contact: Glenn Gray. Petro Star Valdez Pipelines: Petro Star, Inc. proposes to construct two parallel petroleum pipelines and a fuel transfer dock on the south shore of Port Valdez just east of the Solomon Gulch Hatchery. In 1992, Petro Star investigated seven different alternative locations for delivering product to a marine terminal. The proposed pipelines will start at the Petro Star Valdez Refinery and continue west, buried under a mile-long section of a new bike path along Dayville road. From Dayville Road, a trestle will extend about 1,000-feet northward to a fuel transfer dock. Petro Star plans construction of the buried pipeline to be concurrent with construction of the pedestrian path along Dayville Road Contact: Kaye Laughlin. Borealis Power Project: BPXA proposes to expand inftastructure to meet power demands of future satellite expansion in the western end of the Prudhoe Bay Unit and a possible tie-in with the Milne Point Unit power grid. The project would include a new 69 kV power line, a sub- station, and possible minor pad extensions. The power line would run ftom the Central Power Station to the L and V Pads in the end of the unit and possibly extended to Milne Point. Originally planed for the 2003-2004 winter season, BP notified OPMP that the project has been deferred for another year. OPMP held a pre-application meeting on April 9. Contact: Kaye Laughlin. DEC Inactive Reserve Pit Closure Program: OPMP is working with state resource agencies and the U. S. Army Corps of Engineers on reserve pit closures required by the DEC solid waste program. Companies are required to complete environmental assessments for all abandoned drilling waste reserve pits and must conduct corrective actions to clean up or prevent release of contaminants at these sites. Assessments have been completed on over 600 sites in the state, and Aurora OperatIOns e Subject: Aurora Operations Date: Fri, 06 Jun 2003 09:58:31 -0800 From: Glenn Gray <Glenn_ Gray@dnr.state.ak.us> Organization: Alaska Department of Natural Resources To: Tom Maunder <tom_maunder@admin.state.ak.us> CC: Steve Davies <steve_davies@admin.state.ak.us>, Randy Ruedrich <randYJuedrich@admin.state.ak.us>, bill penrose <bill@fairweather.com> e Tom: At a preapplication meeting held on April 17, 2003, Fairweather discussed a number of proposals for gas exploration and development projects on the West side of Cook Inlet for Aurora Gas LLC. Although the Office of Project Management and Permitting has not received a Coastal Project Questionnaire for any of the projects¡ it appears that some of the projects will not need an ACMP review. Unless there is an permit trigger (e.g.¡ a Corps 404 permit or a state permit included on the "C List")¡ the following projects will not need an ACMP review: Long Lake No. 1 Mobil Moquawkie No. 1 Simpco Moquawki No. 1 Simpco Moquawki No. 2 West Moquawkie No. 1 For several other wells, an ACMP may be required, and a final decision will be made after Fairweather provides more information to me about the permits needed for the projects: Nicolai Creek Unit No. 7 (ACMP review likely needed) Lone Creek No. 3 (may need a review) Kaloa No. 2 (may need a review) Shirleyville production Facility (may need an ACMP review) As I recall, Fairweather was working with the Corps to complete wetlands determinations to see if 404 permits are needed and with the Office of Habitat Management and Permitting to see if fish habitat permits are needed. By copy of this email, I will check with Fairweather to see if they have any new information. Glenn termination will . . Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information / Needs Lone Creek #3: Permit to Drill number 203-062, expected spud date is May 15,2003. a. Logging program is not specified in well permit application. b. Need determination from Glen Gray as to whether an ACMP Consistency Determination is needed. Long Lake #1: Permit to Drill number 203-068, expected spud date is May 20,2003. a. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce :ITom a pool and to appropriate the oil and gas the person produces :ITom a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 AAC 25.055 (d), which can be found on the Internet at: http://www.state.ak.us/local/akpages/ADMIN/ogc/art199.htm. b. Designation of Operator and Notice of Change of Ownership forms must be submitted to AOGCC. I thoroughly searched AOGCC's files, and Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. These forms can be obtained from AOGCC's website at: http://www.state.ak.us/local/akpages/ADMIN/ogclhomeogc.htm. Pertinent regulations are attached to the end of this letter. My notes concerning ownership and operatorship records for the Moquawkie area that are on file at AOGCC are also attached to the end of this letter. c. C-Plan exemption determination needed from AOGCC. I am awaiting a request letter from ADEC. d. Logging program is not specified in well permit application. Moquawkie #1: Permit to Drill number 203-069, expected spud date is June 1,2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. b. Logging program is not specified in well permit application. Alaska Oil and Gas Conservation Commission 1 . . c. Spacing exception not required as long as re-completion operations In Moquawkie #1 are restricted to intervals above 2900' MD. Moquawkie #1 is 1704' from the nearest lease line, which exceeds the required 1500' setback distance from property lines for a gas well. Moquawkie #1 is 2500' away from, and in same section as, Simpco Moquawkie 2 (178-088), a shut-in gas well capable of production. Perforations in Simpco Moquawkie 2 are open in Tyonek Fm. from 5666' - 5708' MD and 5880' - 5945' MD. Perforations in shallower intervals have all reportedly been squeezed. Since the Moquawkie #1 re-completion will be in the Moquawkie SS member between 2735' - 2874' MD (an interval about 2800'shallower) a spacing exception is not required as long as re-completion operations are restricted to 2900' MD and shallower. West Moquawkie #1: Pennit to Drill number 203-070, expected spud date is June 20, 2003. a. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1, 1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). b. Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. c. Logging program is not specified in well pennit application. Kaloa #2: Pennit to Drill number 203-071, expected spud date is July 1, 2003. a. Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. b. Logging program is not specified in well pennit application. c. Need detennination from Glen Gray as to whether an ACMP Consistency Detennination is needed. d. Spacing exception is not required. Although nearby well Simpco Kaloa 1 is perforated in the same interval and is classified as shut-in, it is not capable of producing in its current condition (bridge plug set at 3552' MD, cement on top of the bridge plug, plus two plugs in casing at 2705' MD and 900' MD). Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us Alaska Oil and Gas Conservation Commission 2 . . Moquawkie Field Area Ownership and Operatorship Records in AOGCC Files April 17, 2003 Nov 1990: Notice of Change of Ownership from Simasko assigning ownership of Simpco Moquawkie No 1, Simpco Moquawkie No 2, and Simpco Kaloa No 1 to COO. Jun 1998: Mobil and COO designate Anadarko as operator for S18, TI2N, RllW. Aug 2000: Notice of change of Ownership from CIRI to Anadarko (50%) and Phillips (50%) for C- 061388 and C-061389. Designation of operator form from Phillips designating Anadarko as operator of COO Lease C-061388. Anadarko also provided an Assignment of Oil and Gas Lease document for C-061389, immediately to west, but there is no designation of operator form for that lease. Apr 2001: Designation of Operator form from Anadarko naming ARCO Alaska as operator of COO lease C-061500, which is S18, Tl2N, Rll W. Jan 2003: Designation of Operator form designating Aurora as Operator of Moquawkie "Unit" area only. ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; Alaska Oil and Gas Conservation Commission 3 . . (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 MC 25.025. The commission's acceptance ofthe designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). Alaska Oil and Gas Conservation Commission 4 Well Permit Response e e Subject: Well Permit Response Date: Wed, 30 Apr 200313:57:16 -0800 From: duane vaagen <duane@fairweather.com> To: 'Tom Maunder' <tom_maunder@admin.state.ak.us> CC: 'Ed Jones' <jejones@aurorapower.com> Tom: Please find attached a response to AOGCC's request for information and clarification for each of the following (4) wells. West Moquawkie No. 1 Kaloa No.2 Moquawkie No. 1 Long Lake No.1 I hope that the attachments will clarify, appropriately address and correct concerns initially submitted to us. Please do not hesitate to call or email me should more clarification or information be required. Thank You Duane Vaagen Project Engineer Fairweather E&P Services, Inc. duane@fairweather.com Office: (907)258-3446 Cell: (907)240-1107 ¡ Name: W. Moquawkie #1.doc ' Ow. MOQuawkie #1.doc Type: WINWORD File (application/msword) .' Encoding: base64 ~j Name: Kaloa #2.doc o Kaloa #2.doc Type: WINWORD File (application/msword) Encoding: base64 OLOnQ Lake#1.doc Name: Long Lake #1.doc Type: WINWORD File (application/msword) base64 10f2 7/24/2003 11 :52 AM e e Original Message: From: Tom Maunder [tom_maunder@admin.state.ak.us] Sent: Monday, April 21, 2003 1:17 PM To: duane vaagen Subject: Long Lake #1 Hi Duane, I was looking at the Long Lake #1 and had a couple of questions. 1. I note that you are planning to have the rotating head installed. Is there a plan to reverse circulate while cleaning out?? I think that is what was done last year. 2. You plan to drill out the plug at the casing shoe and clean out to about 3500' which is -1150' above the next plug. How will you insure that any cement won't "fall" into this open hole section?? I realize that calling this section open hole may be generous, but will a "firm" bottom be established to insure that the cement column is not compromised?? 3. If the 10-3/4" does not test, is there a plan to run a full string of 7" to get competent pipe in the hole and then potentially have a smaller liner?? Thanks for you attention to these questions. Also, has the letter regarding the gas determination been sent to DEC?? Tom Maunder, PE AOGCC Response: Long Lake No. 1 Tom: Thank you for your prompt review, please find below Aurora's response to the above concerns and questions in order originally posed. 1) Yes, the plan is to reverse circulate during well re-entry operations and clean out. We intend to reverse circulate during both cased hole and OR clean out operations. I apologize for not clarifying that on the well plan submitted with the permit application. e e 2) Depending on results of OR logging, we will displace a 100' balanced cement plug from 3505' - 3605' and tag to verify firm top prior to casing running and cementing procedure. 3) Aurora will test the integrity of the 10 3/4" casing through standard pressure testing procedures at surface. If a leak is detected, a test packer will be run to locate the leak. If and when a leak is located, cement and squeeze techniques will be instituted, perforating and squeezing as required to repair. Depending on results, a casing patch may be considered. Aurora realizes that to safely perforate, test and produce natural gas from this well, an adequate string or series of casing strings must be in place. Running a 7" inner string wi th a 5" liner is always an option but Aurora will attempt to repair leaks prior to running and cementing in another string. Aurora will have sufficient 7° casing on hand to tie back to surface in lieu of just hanging a liner should the 10 ~" casing prove to be too problematic. Thanks and please do not hesitate to call me at 258-3446 with any more questions or concerns. Duane Vaagen Fairweather E&P Services, Inc. · 2003 Prqposed Cook Inlet Basin Projects...ations - Additional Information / Needs e e Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Mon, 21 Apr 200308:52:49 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: Ijones@aurorapower.com, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Gentlemen: This is a re-transmission of an email sent on Friday. I received a transmission error notice on the copy sent to Randy Jones. I phoned Aurora Power to confrim the email address, and it appears to be correct. So, I'll try again and follow-up with a phone call tomorrow morning to ensure receipt (I understand Randy is out of the office today) . Also, the C-Plan exemption determination needed from AOGCC applies to each of these proposed projects, not just Long Lake #1. I am awaiting a request letter before I undertake a review. Thanks, Steve Davies ----------------------------------------------------------------------- Gentlemen: The attached notes are my comments and needs for your permit to drill applications for Aurora's 2003 Cook Inlet Basin program. Please call or email if you have any questions. Sincerely, Steve Davies Petroleum Geologist Alaska oil and Gas Conservation commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us --« '-'-"r~"~"'-' -. ~.._~,-_..,- :-...,,_.~. ,.-... '-"--1"-"~-~-' ~.. .'_..~..~~.. __"__"'~H~~'''(''~~''_»1'~~ " -,,~.~. "'~~~- -"..,. , Name: 030418_Aurora_ W _CI_Project_ Emai1.docl Type: WINWORD File (applicationfm i Encoding: base64 ~030418 Aurora W CI Project Deficiencies _..~_,_ _~'vv~.(~..'_.~',~.."'V~'_~u_"'... 'V"*"^'~'~~'~'~~_~~U~" ~. ~_ -'~~"""""""","-'W~_~"""~~""""';'~"~~'~'~ ~vm<Y'~-' ~_ ~. "_.~~u.".....m ¡~ Long Lake #1 . Subject: Long Lake #1 Date: Mon, 21 Apr 200313:16:46 -0800 From: Tom Maunder <tom_maunder@admin.state.ak.us> To: Duane Vaagen <duane@fairweather.com> Hi Duane, I was looking at the Long Lake #1 and had a couple of questions. 1. I note that you are planning to have the rotating head installed. Is there a plan to reverse circulate while cleaning out?? I think that is what was done last year. 2. You plan to drill out the plug at the casing shoe and clean out to about 3500' which is -1150' above the next plug. How will you insure that any cement won't "fall" into this open hole section?? I realize that calling this section open hole may be generous, but will a "firm" bottom be established to insure that the cement column is not compromised?? 3. If the 10-3/4" does not test, is there a plan to run a full string of 7" to get competent pipe in the hole and then potentially have a smaller liner?? Thanks for you attention to these questions. Also, has the letter regarding the gas determination been sent to DEC?? Tom Maunder, PE AOGCC Tom Maunder <tom maunder@admin.state.ak.us> Sr. Petroleum Engineer Alaska Oil and Gas Conservation Commission 1 of 1 . 4/21/20031:23 PM Long Lake # 1 . . Hi Duane, I was looking at the Long Lake #1 and had a couple of questions. 1. I note that you are planning to have the rotating head installed. Is there a plan to reverse circulate while cleaning out?? I think that is what was done last year. 2. You plan to drill out the plug at the casing shoe and clean out to about 3500' which is -1150' above the next plug. How will you insure that any cement won't "fall" into this open hole section?? I realize that calling this section open hole may be generous, but will a "firm" bottom be established to insure that the cement column is not compromised?? 3. If the 10-3/4" does not test, is there a plan to run a full string of 7" to get competent pipe in the hole and then potentially have a smaller liner?? Thanks for you attention to these questions. Also, has the letter regarding the gas determination been sent to DEC?? Tom Maunder, PE AOGCC 1 of 1 3/9/20068:01 AM e e Aurora Gas LLC 2003 Proposed Cook Inlet Basin Projects Permit to Drill Applications - Additional Information I Needs Lone Creek #3: Pennit to Drill number 203-062, expected spud date is May 15,2003. a. Logging program is not specified in well pennit application. b. Need detennination from Glen Gray as to whether an ACMP Consistency Detennination is needed. Long Lake #1: Pennit to Drill number 203-068, expected spud date is May 20,2003. a. SPACING EXCEPTION REQUIRED: due to close proximity (less than 500') to property line with an Escopeta lease to the south and apparently unleased Mental Health Trust land to the east. Our regulation states: ".. . for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line;" (see attached regulations, below). Landowner means "the owner of the subsurface estate of the tract affected," and owner means "the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others." The spacing exception process takes about 6 weeks. Spacing exception application requirements are published in AOGCC's regulation 20 MC 25.055 (d), which can be found on the Internet at: http://www.state.ak.us/local/akpages/ADMIN/ogc/art199.htm. b. Designation of Operator and Notice of Change of Ownership fonns must be submitted to AOGCC. I thoroughly searched AOGCC's files, and Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. These fonns can be obtained from AOGCC's website at: http://www.state.ak.us/local!akpages/ADMIN/ogclhomeogc.htm. Pertinent regulations are attached to the end of this letter. My notes concerning ownership and operatorship records for the Moquawkie area that are on file at AOGCC are also attached to the end ofthis letter. c. C-Plan exemption detennination needed from AOGCC. I am awaiting a request letter from ADEC. d. Logging program is not specified in well pennit application. Moquawkie #1: Pennit to Drill number 203-069, expected spud date is June 1,2003. a. Designation of Operator and Notice of Change of Ownership fonns are not on file for this lease. b. Logging program is not specified in well pennit application. Alaska Oil and Gas Conservation Commission 1 e e c. Spacing exception not required as long as re-completion operations In Moquawkie #1 are restricted to intervals above 2900' MD. Moquawkie #1 is 1704' from the nearest lease line, which exceeds the required 1500' setback distance from property lines for a gas well. Moquawkie #1 is 2500' away from, and in same section as, Simpco Moquawkie 2 (178-088), a shut-in gas well capable of production. Perforations in Simpco Moquawkie 2 are open in Tyonek Fm. from 5666' - 5708' MD and 5880' - 5945' MD. Perforations in shallower intervals have all reportedly been squeezed. Since the Moquawkie #1 re-completion will be in the Moquawkie SS member between 2735' - 2874' MD (an interval about 2800'shallower) a spacing exception is not required as long as re-completion operations are restricted to 2900' MD and shallower. West Moquawkie #1: Permit to Drill number 203-070, expected spud date is June 20, 2003. a. SPACING EXCEPTION REQUIRED: Simpco Moquawkie 1,1,400' to the Southeast, is classified as a shut-in gas well, and is completed in the same interval as proposed for the West Moquawkie #1 re-completion. Simpco Moquawkie 1 also lies within the same section (Section 36). b. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. c. Logging program is not specified in well permit application. Kaloa #2: Permit to Drill number 203-071, expected spud date is July 1, 2003. a. Designation of Operator and Notice of Change of Ownership forms are not on file for this lease. b. Logging program is not specified in well permit application. c. Need determination from Glen Gray as to whether an ACMP Consistency Determination is needed. d. Spacing exception is not required. Although nearby well Simpco Kaloa 1 is perforated in the same interval and is classified as shut-in, it is not capable of producing in its current condition (bridge plug set at 3552' MD, cement on top of the bridge plug, plus two plugs in casing at 2705' MD and 900' MD). Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Commission Telephone: (907) 793-1224 Fax: (907) 276-7542 steve _ davies@admin.state.ak.us Alaska Oil and Gas Conservation Commission 2 2003 Proposed Cook Inlet Basin Projects: Pennit to Drill Applications - Additional Information / Needs Subject: 2003 Proposed Cook Inlet Basin Projects: Permit to Drill Applications - Additional Information / Needs Date: Mon, 21 Apr 200308:52:49 -0800 From: Steve Davies <steve_davies@admin.state.ak.us> To: rjones@aurorapower.com, duane vaagen <duane@fairweather.com> CC: Tom Maunder <tom_maunder@admin.state.ak.us> Gentlemen: This is a re-transmission of an email sent on Friday. I received a transmission error notice on the copy sent to Randy Jones. I phoned Aurora Power to confrim the email address, and it appears to be correct. So, I'll try again and follow-up with a phone call tomorrow morning to ensure receipt (I understand Randy is out of the office today) . . Also, the C-Plan exemption determination needed from AOGCC applies to each of these proposed projects, not just Long Lake #1. I am awaiting a request letter before I undertake a review. Thanks, Steve Davies ----------------------------------------------------------------------- Gentlemen: The attached notes are my comments and needs for your permit to drill applications for Aurora's 2003 Cook Inlet Basin program. Please call or email if you have any questions. . Sincerely, Steve Davies Petroleum Geologist Alaska Oil and Gas Conservation Telephone: (907) 793-1224 Fax: (907) 276-7542 steve davies@admin.state.ak.us Commission ,,'" "-"~-y ... ~'''''-m'''~'''''''''''' .. ..... ...._~~....~--....__........ -...-..-~_.~~.__...,_._.-....-.-... ··......-1 ¡Name: 030418_Aurora_ W _CI_Project_Deficiencies_Email.doc¡ ~030418 Aurora W CI Project Deficiencies Email.doci Type: WINWORD File (applicationlmsword) , : Encoding: base64 i - '~~'~"~~'" ~·Y~"""'·Y"'o/V:f·~~"""~'" ~~. ""Y' '~'~H"1""'-»>'~-"""I"~"""""""fW"'W-~~ . ..~ "~~·~~"~~~,~.....·~y"..·~'.....",..,·-.»mW.".~w..".,.....w. ...... ¡ e e Moquawkie Field Area Ownership and Operatorship Records in AOGCCFiles April 17, 2003 Nov 1990: Notice of Change of Ownership from Simasko assigning ownership of Simpco Moquawkie No 1, Simpco Moquawkie No 2, and Simpco Kaloa No 1 to COO. Jun 1998: Mobil and COO designate Anadarko as operator for S 18, T12N, R11 W. Aug 2000: Notice of change of Ownership from COO to Anadarko (50%) and Phillips (50%) for C- 061388 and C-061389. Designation of operator form from Phillips designating Anadarko as operator of COO Lease C-061388. Anadarko also provided an Assignment of Oil and Gas Lease document for C-061389, immediately to west, but there is no designation of operator form for that lease. Apr 2001: Designation of Operator form from Anadarko naming ARCO Alaska as operator of COO lease C-061500, which is S18, T12N, R11W. Jan 2003: Designation of Operator form designating Aurora as Operator of Moquawkie "Unit" area only. ------------------------------------------------------------------------------------------------------------ Pertinent AOGCC Regulations 20 AAC 25.055 DRILLING UNITS AND WELL SPACING. (a) The commission will, in its discretion, establish drilling units to govern well spacing and prescribe a spacing pattern by pool rules adopted in accordance with 20 AAC 25.520. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following statewide spacing requirements apply: (1) for a well drilling for oil, a wellbore may be open to test or regular production within 500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; (2) for a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line; Alaska Oil and Gas Conservation Commission 3 ~ ; "'. " . e e (3) if oil has been discovered, the drilling unit for the pool is a governmental quarter section; not more than one well may be drilled to and completed in that pool on any governmental quarter section; a well may not be drilled or completed closer than 1,000 feet to any well drilling to or capable of producing from the same pool; (4) if gas has been discovered, the drilling unit for the pool is a governmental section; not more than one well may be drilled to and completed in that pool on any governmental section; a well may not be drilled or completed closer than 3,000 feet to any well drilling to or capable of producing from the same pool. 20 AAC 25.020 DESIGNATION OF OPERATOR If an owner of a property wishes to designate a new operator for the property, the owner shall submit to the commission for approval a Designation of Operator (Form 10-411). The commission will not approve the designation of a new operator without the signature of the newly designated operator on the same Designation of Operator form. By signing the Designation of Operator form, the newly designated operator agrees to accept the obligations of an operator. The newly designated operator shall furnish a bond and, if required, security as provided for in 20 MC 25.025. The commission's acceptance of the designated operator's bond constitutes the release of the former operator's bonding obligation for the property indicated on the Designation of Operator form. 20 AAC 25.022 NOTICE OF OWNERSHIP Within 15 days after a person becomes an owner of a property on which operations subject to this chapter are proposed to the commission or are being conducted, the person shall file a Notice of Ownership (Form 10-417). Alaska Oil and Gas Conservation Commission 4 lJ I '.II 12 1 '.II 6 1 VI 1 VI 1 111 1 w z www.aurorapower.com April 7, 2003 Oil and Gas Commissioners Alaska Oil and Gas Conservation Commission 333 West 7th Ave., Suite 100 Anchorage, Alaska 99501 q RE: Application for Permit to Drill: Long Lake No.1 Dear Commissioner( s), Aurora Gas, LLC hereby applies for a Permit to Drill, a prerequisite for re-entering and re-completing the abandoned well, Long Lake No.1. It is Aurora's intent to re-enter, log, test and re-complete Long Lake No.1 as a natural gas production well. Long Lake"No. 1 wa$. drilled by Texaco in 1973 in search of oil. Due to lack of commercial quantities of oil, the well was summarily plugged and abandoned with a series of cement plugs in the wellbore to surface. Long Lake No. I, formerly part of the Long Lake Unit, is located onshore approximately 5 ~ miles northwest of Granite Point and 10 miles west of the Village of Tyonek. Aurora plans to begin well re-entry and re-completion operations on May 15th, 2003. - tt/t if- .Á'b The site is readily accessible via road so no new roads are required. Upon receipt of all necessary permits and approvals, contractors will clear the location of overgrowth and repair the surface. A new wellhead will be installed and the rig, Aurora Well Service No. I, will be rigged up over the well to commence well operations. Pertinent information in and attached to this application includes the following: 1) Form 10-401 Application for Permit to Drill- 3 copies 2) Fee of $100.00 payable to the State of Alaska 3) A plat map and information detailing the surface location and proposed bottomhole location 20 MC 25.050 (c)(2) 4) Diagrams and description of the BOP equipment to be used as required by 20 MC 25.035 (a)(l) and (b) 5) The drilling fluid program, in addition to the requirements of 20 MC 25.033 are attached 6) A copy of the well history, proposed re-entry, recompletion procedure and operational considerations is attached ORIGINAL 10333 Richmond Avenue, Suite 710· Houston, Texas 77042· (713) 977-5799. Fax (713) 977-1347 1029 West 3rd Avenue, Suite 220· Anchorage, Alaska 99501· (907) 277-1003. Fax (907) 277-1006 e e Commissioner( s) Page 2 7) Aurora Gas LLC. does not anticipate the presence ofH2S in the formation to be encountered in this well. However, H2S monitoring equipment will be functioning on the rig at all times during sidetracking, drilling and completion operations 8) A Summary of Potential Well Hazards 9) Pressure Information 10) The following are Aurora Gas LLC's designated contacts for reporting responsibilities to the Commission · Completion Report (20 AAC 25.070) Duane Vaagen, Project Engineer (907) 258-3446 · Geologic Data and Information (20 AAC 25.071) Andy Clifford, Vice President (713) 977-5799 · Well Records, Testing and Production Reporting (20 AAC 25.070) Ed Jones, Vice President (713 ) 977-5799 If you have any questions or require additional information, please contact the undersigned at (713) 977-5799, or Duane Vaagen at (907) 258-3446. Sincerely, . Edward Jones Aurora Gas, LLC . Vice President, Operations and Engineering Enclosures cc: Duane Vaagen Andy Clifford ORIGINAL ~1!R6EXPl~IONIa PRODUCTION SERVICES INC. I GENERAL ACCOUNT 010866 10866 VENDOR 1.0. r NAME e r PAYMENT NUMBER f CHECK DATE - 1049 TATE OF ALASKA AOGCC 0008865 19/2003 OUR I.OUCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID DISCOUNT WRITE-OFF NET 00013343 1049030409*LL#1 4/9/2003 $100.00 $100.00 $0.00 $0.00 $100.00 $100.00 $100.00 $0.00 $0.00 $100.00 COMMENT FAIRWEA THER EXPLORATION & PRODUCTION SERVICES INC. GENERAL ACCOUNT P.O. BOX 103296 ANCHORAGE, AK 99510-3296 PH. (907) 258-3446 FIRST NATIONAl.. BANK OF ANCHORAGE ANCHORAGE. AK 99501 89-611252 - 1 DATE 4/9/2003 10866 AMOUNT $100.00 flAY One Hundred DOJ.J.ars And 00 Cents TO THE ORDER OF STATE OF ALASKA AOGCC 333 WEST 7TH AVE SUITE 100 ....~____m_. -- '~'~"~'---~-"._,"---,,"-~---'~-'- --~ ANCHORAGE AK 99501 AUTHORIZED SIGNATURE 11-0 1.08 b b"- I: 1. 25 2000 bOI: 0 1.1. 2 82.:1 0"- ¡¡; ~ ¡!j ¿; ~ <J z o ¡:: § <J <J <J w z ¡¡; OJ CD <J Z S "- '< w a: " t: o <J o a: o ~ ~ g ... .. z ~ F'AiAwemEÀ ËXÞftß1fÀerlðN JBl PRODUCTION SERVICES INC. I GENERAL ACCOUNT VENDOR I.D. I NAME I PAYMENT NUMBER I CHECK DATE I 1049 STATE OF ALASKA AOGCC 00008865 r/9/2003 OUR I.()UCHER NUMBER YOUR VOUCHER NUMBER DATE AMOUNT AMOUNT PAID 00013343 1049030409*LL#1 4/9/2003 $100.00 $100.00 010866 10866 DISCOUNT $0.00 WRITE-OFF $0.00 NET $100.00 . . Aa$Ì(al~i ,.0.;:." ~'(;:;¡ITi(¡510f' $100.00 $100.00 $0.00 $0.00 $100.00 COMMENT . 51N321 . e e TRANSMJT AL LETTER CHECKLIST CIRCLE APPROPRIATE LETTER/P ARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME ~!5 L4L / 2D3 ~ û6ß PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (If API Dumber last two (2) digits are between 60-69) "CLUE" The permit is for a new wellbore segment of existing weD Permit No, API No. Production should continue to be reported as a function' of the original API number. stated above. HOLE In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API Dumber (50 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) .SPACING ~'EXCEPTlON DRY DITCH SAMPLE Rev: 07/]0/02 C\jody\1emplates The permit is approved subject ·to fuD compliance with 20 AAC 25.055. Approval to peñorate and produce is contingent upon issuance of a conservation oJ1der appro~ng a spacing . exception. /-t....,..,,-ð-r4- 9~/ Uc- (Company Name) assumes the liability of any protest to tbe spacing . exception that may occur. All dry ditcb sample sets submitted to tbe Commission must be in no greater than 30' sample intervals from below tbe permafrost or from where samples are first caught and 10' sample intervals tbrough target zones. Well Name: LONG LK 1 PTD#: 2030680 Company AURORA GAS LLC Initial ClassfType DEV I PEND GeoArea 820 Unit 11224 1 Pe(mil.fee attached _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ _ . . . Yes . _ _ _ . _ . . . _ _ _ . . . _ _ _ . . . _ 2 .Leasenumber approPJiate . _ _ _ . . . . . _ _ . . . . _ _ _ _ _ . . . _ . . . . _ _ _ . . Yes _ Mental Health Trust lease 930Q023 _ _ _ _ _ . . . _ _ . . _ 3 .Uni.qUe well.n.ame .a[lej lJu.mber . . . . . . . . . . . . . . . . . . . . . . . . . . _ _ _ _ _ . _ _ _ . _ _ _Yes. . _ _ _ _ _ . . . . _ . . . . _ _ _ _ _ _ . _ . _ _ _ . . _ _ _ _ _ . . . _ . . . . . _ _ _ _ . . _ _ _ _ . . . . _ _ . . _ _ _ _ _ _ _ . . . . _ . 4 WeJI.lo.cated in.a.d.efined pool _ _ . . . . . _ _ _ _ . . _ _ _ _ _ _ . _ . _ _ . _ . . . _ N_o _ . _ _ Aurora p(oposes to.re-complete an exjs!ilJg welUn an undefined gas_ppolc . . 5 WeJI.lo.cated proper dista[lceJrom. driJling unitbpundary. . . _ _ _ _ . . . . _ _ _ _ . _ . _ _ _ . . . Np_ . _ _ Well is located ~1.250' from propertyJine with un.le_ased.acreage; 25.055.requjres 15.00'set-back for a gasweJl. 6 We.ll.located prpper di.stanceJrom otheJ wells_ _ _ _ . . . _ _ _ Yes _ _ _ . . .. _ _ . . .. _ _ _ . . . _ _ . _ _ _ _ _ _ _ . . _ . . . _ . . _ 7 _Sufficient acreag.e.ayailable in.drilJiog unjt. . . _ _ _ _ . . . . _ . . . . . . _ _ _ _ . . . Yes _ _ _ _ _ . _ _ _ _ _ . . . . _ . . . . . _ _ . . . _ _ _ _ . . _ _ _ . _ _ . . _ _ _ _ . _ 8 Hdeviated,jsweJlboJeplatJncluded _ _ _ _.. _. _ _ _. _.. _. .. _ _. _.' No_ _ _ _Atproppse_dTD.of355_0'_MD,.lhewe.llboreis_approx110'we.stof.surfa_celocatipo..Dir.datajn.GeoFrame, _ gOper.ator only, affected pa_rty. . .. _ _ . . . . _ _ _ . . . . _ _ . . . . . _ _ _ . . . . No Unleased aCJeage -12_50' .to SE;_another propertyJine 110_0'. S (MHT. v.s.S!ate). . . . _ _ _ . _ _ _ 10 pperator ba.s.appropriate_b.Q[ld i.nJorce. _ _ _ . . . _ _ _ _ _ _ _ . . _ _ _ . _ _ _ _ _ _ . . . _ _ _ . . Yes _ _ _ . . _ _ Letter. of Credit _ . _ . _ . . . . . . _ _ _ . . . . _ _ _ . . . . . . _ . . _ _ _ _ . . _ _ . _ _ . . . _ _ _ . . _ _ _ . . . _ _ . . 11 Pe(mitcao be i$su_ed wjtho.ut conservation order. . . . _ . . . . _ _ _ . . _ . _ _..... _ _Yes _ . _ _ . . . Well may, be.dJilIed, bu.t cannotb.e.perfed, tested orpJod.uceduntil.a_spacjn-9.exception.is graoted.Si=Q _ . . . Appr Date 12 Pe(mitC<lo be i$su.ed without administ(ati\(e_apprpva.l . _ . . . . . _ _ . . . . . _ _ _ . . Yes _ . . . _ . _ . . . . . _ _ _ _ . . . . _ _ . _ . . . _ _ _ . _ _ _ . _ . . . _ . _ _ _ . . . _ _ . _ _ . . _ SFD 12/11/2003 13 Can permit be approved before 15-daywait Yes 14 We.ll.located wi!hjn area an_d_strata authorized byJojectiolJ OrdeUI (puUO# in_cpmmeots)_(for. NA _ _ . _ . . _ _ _ . . _ . _ _ _ . . . . _ _ _ . . . . _ _ _ . . . . _ _ _ . . _ . _ _ _ . . _ . _ . . . . _ _ _ . . _ _ 15 AJI wells.within .1l4.llJile_are_a_of review idelJtified (Fo(servj~)Nel.l only,). _ _ _ _ _ . . _ . _ . . . . NA _ _ . . . _ _ _ . . _ _ _ _ _ . . . . _ _ . . . . _ . _ _ . . _ _ _ _ _ . . . . . _ _ . . . _ _ . . . . . _ _ . . . . . _ . . _ _ _ _ . . . _ . . _ . 16 Pre_-produced.il1jector; duratjo_n.ofpre-produGtionlessthan.3.mon_ths.(for.servicewell. only) .' NA _ _. _. _ _ _.... _ _... _ _. _... _ _ _. _ _ _ _... _. _ _ _ _. _._ 17 ACMP_Fjn_ding.ofCon$isteocyhas beenjs.suedJorJbis prpiect. . . _ . . . . . _ _ NA . _ _ _ . . . F're-app meeting scheduJedJorAA7-Q3, . . .. _ _ . . . _ _. _ . _ _ Administration Engineering Appr Date TEM 4/21/2003 Geology Appr Date SFD 4/17/2003 Geologic Commissioner: o~ Field & Pool MOQUAWKIE, UNDEFINED GAS - 528500 o D Program DEV OnlOff Shore On Well bore seg Annular Disposal e - - - - - -- 18 Çpoductor strjn-9.provided . . _ _ _ _ _ . . . _ _ . . _ _ _ _ _ _ . . . . _ . . _ . _ _..... _ _Yes. _ _ _ _ . . Re-entry .of existiog. weJ!.. . _ _ _ . _ _ _ _ _ _ . . _ _ _ _ _ . . _ 19 .5urfa~.casingprotec!s_all.kl1own_USQWs _ . _ _ _ . _ . . _ _ _ _ . . .. Yes _F'rodu.ction_ casingseUo3Q52'. Depth is.weJlin_exœss ofanypotelJtialwa_terwel.l.. 20CMTvola.dequateJo circulate_on .conductor.& SUJf.csg . . . . _ _ _ _ . _ _ _ _ _ _ . _ . _ _ _ . . . .Yes _ _ Volume sufficielJUo ce_ment 16" tos_urtace._ _ _ . . . _ _ _ _ . . . _ _ _ . . . . _ _ _ _ _ . . . 21 ÇMTvpla.dequateJo tie-inJongstril1g to surf CS-9. . _ _ _ _ . . . . _ _ _ . . . . _ _ _ . . Yes _ . Volume. sufficieoUo cement 10,3J4"to su.rface, . _ _ _ . . . _ _ _ . _ _ _ _ . _ _ . . _ _ _ . . . . _ 22 .CMTwill coyer.all knownproductiye borilon$_ . _ _ _ _ _ _ Yes _ _ _ _ . . . . _ _ _ _ _ .. _ _ _ . _ . _ _ _ _ . _ _ _ _ _ _ . _ _ _ _ . . . _ _ _ 23 Çasiog desig[lS adequate fo( C,T, B .&.p.ermafrpst _ _ _ . Yes _ . _ _ _ . . . _ _ _ . . _ 24 Adequate lan!<age_orre$erye pit _ . _ _ . . . . _ _ _ . . . . . _ _ . . . . _ _ . . . . _ _ _ _ _ . . . _ Yes _ _ _ . _ _ . Rig has steeJ pits, No reserve pit planned. _ Any .drilJilJg. wa.stelo Eo\(iro-JechJor.djsposal.. . _ _ . . _ _ _ . . . _ 25 .If.are-d(iII, has.a 1.004_03 fOJ aba_ndonment beeo apPJoved . . _ _ . . . _ _ _ _ _ . . . . _ _ _ _ . . NA . . . . _ _ _ _ _ . . _ _ _ . . _ _ . . . . . . . . _ _ . . . _ _ _ _ . _ _ _ _ _ . . . _ _ _ . _ _ . _ _ _ . . _ _ _ . . _ . _ 26 Adequate.wellb.ore.s.eparalionproposed..... _ _ . . _ . _ _ _ . . . _ _ _ . . . _ _ _ _ _ . . _ . _ Yes. . . _ _ . . . . _ _ _ . . . _ _ _ _ . . . _ _ . _ . . . . _ _ _ . . . _ _ . . . . _ _ _ _ _ . . _ _ _ . . . _ _ _ _ . . . _ . _ . _ _ _ _ . _ _ _ . 27 .If.diverter required, do.es it meetreguJa.tiolJs . . . _ _ . _ _ . . _ . _ _ _ _ _ _ . . _ _ . . _ NA _ . . . _ _ _ Well will be equipped with.a_s.tack from th.e.onset.. . . _ _ _ _ . . . _ _ . . . _ _ . _ _ _ . . _ _ 28 PrilJilJg fluid.pJogram sc.\1emalic.&. equip Jistadequate. . . . _ . _ . . . . _ _ . . . . .. _.... Yes _ . Anticipated BHF' 9.4 EMW. . F'lanned MW 9.3 to.9,8.. _ _ . . . . . _ _ . . _ _ _ _ _ . . _ . 29 _BOPES,dpthey meet reg uJa.tion _ _ . . . . _ . . . _ . _ _ . _ . . . _ Yes _ _ . . . . . _ _ . _ . _ _ . _ . _ _ . _ . _ _ _ . . _ _ _ . _ _ _ . . . _ 30 BOPE.pre.ss ratiog appropriate; testto(put psig in comments) _ _ . _ _ . _ . _ . . . . _ Yes . _ . . MASF' estimated at 1349 psi. Aurora plal1s tp_testt0300Q psi. _ _ _ . . . _ _ 31 .C.\1okemanifold comp.lies. wIAF'IRf'-53. (May 84). . _ _ _ _ . _ . _ _ _ . . . _ . _ . . _ . . Yes _ _ . . _ _ . _ _ _ _ . . . _ . _ . . . _ . _ _ _ _ . . . _ . _ . . _ . _ . _ . . . . _ _ _ _ _ _ . 32 WOJk will OCCIJ ( withoutoperaliol1sb utdown. _ _ . _ . . . . . _ _ . . . . _ _ _ Yes. _ . _ _ _ . . . . _ _ _ _ . . . _ _ . _ . _ _ . _ _ _ . . . . _ _ . . . . . . _ . . . . 33 .Is presel1ce_ of H2S gas_ !)rQb_able _ _ . . _ . . . _ . . . _ . _ _ . . _ _ _ . _ _ . _ . . N_o _ . . . _ . . . _ _ _ _ _ . . . _ _ _ . . . . _ _ . . . . . . _ . . . _ _ 34 Mecba.nicaLcolJdjti.o[l of weJls wi!hjn AOR verified (For.service well only) _ _ _ _ . . . _ _ .NA _ _ . _ _ . . . _ . _ _ . . _ _ . _ . . . . . _ _ _ . . _ _ _ _ . . . . _ _ _ . _ . _ _ _ e - - - - -- - - - - - ~ - - - - - - 35 Pe(mitcal1 be i$su_ed wlo_hYdr.ogensutfide meaSu(es _ . _ . . . . _ _ Yes. _ . . _ f\lo record of.H2.5ilJ thiSJeg.ion, . _ . . . . . . 36 .DatapreselJted on_potential overpres.surezones.. _..'" _ _ _ _ . . . _ _ _ _ . . . Yes. _ . Anticipated pressur.e-9ra_diel1tio reservoir.is 0.45 psj/ft.. 37 .Seismic_al1alysjs.ofsbaJlow gas.zooes_ . . _ . _ . . _ . . . . . _ NA _ _ _..... _... _ _ . _ . . . . . _ . . . . . _ 38Seab.ed .conditiOIJ survey (if off-shp(e) _ _ _ _ . _. _ _ . . . _ . _ . . . . . _ _ _ _ . _ . _NA. _ . _ _ _ _ . . . _ _ _ _ . . . . _ _ _ . . . . _ . . . _. _..... _ . . . . . 39 .ContactnamelphoneJor.weekly progress reports [exp1oratory.ol1 Iy).... . _ _ _ _. _' NA _ _ _ _.." _ _... _ _ _ _ _... _ _... _.' _..... _ _ _ _. _' _ _... _ _ . _ _ _._ Date'. Engineering Date Public ~ 0 t SPACING EXCEPTION REQUIRED: Aurora proposes to re-complete this well <1500' from unleased acreage (expired lease Commissioner: Commissioner c ¡r- a e /; ADL 386064, located -1250' to the SE). Oct. 28, 2003: discussed again with Randy Jones of Aurora. SFD Well can be / ¿ '/r ~. drilled, but not perf'ed, tested or produced until a spacing exception is granted. Aurora has not applied for a spacing /0:; exception. 12/11/03 SFD - - - - - - - - - - - - - ~ - - - - - -- - - - - ~ - - - ~ - ~ - - - - - - ~ - I <..J I 5 ( .3