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Home My WebLink AboutCO 505 CCONSERVATION ORDER 505C Prudhoe Bay Field Schrader Bluff Oil Pool 1. April 18, 2023 Hilcorp application for expansion of PBU, Schrader Bluff, amended application, email Oil Pool (confidential exhibits held in secure storage) 2. April 20, 2023 Notice of Hearing; affidavit of publication, email distribution STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF HILCORP NORTH SLOPE, LLC for an order to expand the affected area of the Schrader Bluff Oil Pool, Prudhoe Bay Field, North Slope, Alaska. ) ) ) ) ) ) ) ) Docket Number: CO-23-006 Conservation Order 505C Prudhoe Bay Field Schrader Bluff Oil Pool Orion Development Area August 30, 2023 IT APPEARING THAT: 1. By letter dated April 18, 2023, Hilcorp North Slope, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation (AOGCC) grant an expansion of the Prudhoe Bay Field, Schrader Bluff Oil Pool, Orion Development affected area as currently defined in Conservation Order No. 505B (CO 505B). 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) scheduled a public hearing for June 13, 2023. On April 20, 2023, the AOGCC published notice of that hearing on the State of Alaska’s Online Public Notice website and on the AOGCC’s website, electronically transmitted the notice to all persons on the AOGCC’s email distribution list and mailed printed copies of the notice to all persons on the AOGCC’s mailing distribution list. On April 23, 2023, the notice was also published in the Anchorage Daily News. 3. No protest to the application or request for hearing was received. 4. Because Hilcorp provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 5. The tentatively scheduled hearing was vacated. 6. By letter dated August 8, 2023, Hilcorp requested an amendment to their initial request to exclude a quarter section (40 acres) that is already in the Polaris Oil Pool which includes the same strata as the Orion Development Area of the Schrader Bluff Oil Pool (OA-SBOP). FINDINGS 1. CO 505B was issued on May 4, 2010, and amended on April 15, 2014. It defines the current limits of the OA-SBOP, both vertically and in areal extent, and sets rules governing development and operations for the pool. 2. Hilcorp proposes to expand the affected area of the OA-SBOP westward to the border between the Prudhoe Bay Unit (PBU) and Kuparuk River Unit (KRU) and to the east to reflect the current interpretation of the limits of the pool. The current affected area and the proposed expanded OA-SBOP are shown in Figure 1. 3. Hilcorp has expanded the L Pad drill site in the PBU and has identified and drilled targets in the Schrader Bluff Formation (Schrader Bluff) that are west of the current limits of the OA- SBOP. Conservation Order 505C August 30, 2023 Page 2 of 8 Figure 1. Existing and Proposed Affected Areas for the Orion Development Area of the Schrader Bluff Oil Pool within the PBU. (Source: Hilcorp North Slope, LLC.) 4. Wells targeting the deeper Borealis Oil Pool penetrate the Schrader Bluff and show oil is present in the proposed, expanded area. These wells include PBU L-100 (API No. 50-029- 22858-01-00) and PBU L-112 (API No. 50-029-23129-00-00). Exploratory well PBU NWE 01-01 (API No. 50-029-22858-00-00) also shows oil is present in the Schrader Bluff at this locality. These three wells were drilled to the west of L Pad. Borealis development well PBU L-121 well (API No. 50-029-23138-00-00), which was drilled to the south of L Pad, also shows oil is present in the Schrader Bluff. 5. Hilcorp has drilled wells targeting the Schrader Bluff east of V Pad and north of Z Pad in the PBU that show the Schrader Bluff would be productive outside the existing OA-SBOP boundaries. These wells include PBU V-227A (API No. 50-029-23417-01-00) and PBU W- 241 (API No. 50-029-23741-00-00). 6. On July 10, 2023, the AOGCC approved a gas-oil ratio limitation waiver for PBU L-253 (API No. 50-029-23758-00-00) and PBU L-254 (API No. 50-029-23752-00-00), which were drilled to the Schrader Bluff to the west of the existing OA-SBOP boundary and confirm that the OA-SBOP extends beyond its currently defined limits to the west. 7. The PBU in this portion of the field is bordered to the west by the KRU and to the north by the Milne Point Unit (MPU). 8. The Schrader Bluff extends across a large area of the North Slope and is productive in the PBU, KRU (where it is called the West Sak Oil Pool), MPU, and Nikiatchuq Unit (NU). All four of these units are operated by different companies. PBU is operated by Hilcorp North Conservation Order 505C August 30, 2023 Page 3 of 8 Slope, LLC, MPU is operated by Hilcorp Alaska, LLC (which is owned by the same parent company as Hilcorp North Slope, LLC), KRU is operated by ConocoPhillips Alaska Inc., and NU is operated by ENI Us Operating Co. Inc. There are similarities and differences in the way these four companies develop Schrader Bluff reservoirs. 9. There are multiple sands in the Schrader Bluff, not all of which are productive across all four units where the Schrader Bluff Formation is produced. 10. 20 AAC 25.055(a)(1) prohibits oil wells from being completed within 500 feet of a property boundary where ownership is not the same on both sides of the line without an order from the AOGCC. CONCLUSIONS: 1. Drilling activity in the PBU has clearly demonstrated that the Schrader Bluff is productive beyond the current affected area of the OA-SBOP, and thus the pool should be expanded. 2. The Schrader Bluff hydrocarbon accumulation extends across PBU, KRU, MPU, and NU and comprises a single oil pool per AOGCC statutes. 3. Each unit from which the Schrader Bluff is produced has a different operator. 4. Pool rules that are limited to a single unit and operator are appropriate to allow the four operators to develop their portion of the Schrader Bluff in the manner they deem appropriate for local reservoir conditions. 5. Correlative rights of owners and landowners of offset acreage are protected by the 500-foot set-back requirement from a property line where landowners and owners are not the same. However, this may not ensure the maximum ultimate recovery due to potential waste of resources along these property lines. Under certain circumstances, a waiver to permit a well to be drilled within 500’ of a property line may allow for an increase in ultimate recovery while simultaneously protecting correlative rights. 6. Rule 3 of CO 505B was rescinded by Other Order No. 66, issued January 11, 2011. 7. Rule 10 of CO 505B was superseded by Conservation Order No. 556A, issued June 7, 2018. 8. Rule 13 of CO 505B was superseded by 20 AAC 25.556(d). NOW, THEREFORE, IT IS ORDERED: This Conservation Order supersedes and replaces CO 505, CO 505A, and CO 505B and all associated administrative approvals. The findings, conclusions and administrative record for CO 505, CO 505A, and CO 505B are incorporated by reference in this decision. The following rules, in addition to the statewide requirements under 20 AAC 25 as set forth below, apply to the Schrader Bluff Oil Pool within the following affected area: Conservation Order 505C August 30, 2023 Page 4 of 8 Umiat Meridian Township Range, UM Lease Sections T12N-R10E ADL 025637 13 and 24 T12N-R11E ADL390067 14: S/2 S/2, 23: ALL, 24: SW/4 and SW/4 of NW/4 ADL 047446 17, 18, 19, and 20 ADL 047447 16 S/2, NW/4, and S/2 NE/4, 21, and 22 ADL 028238 25 SW/4, 26, 35, and 36 ADL 028239 27, 28, 33, and 34 ADL 047449 29, 30, and 32 T11N-R11E ADL 028240 1, 2, 11, and 12 ADL 028241 3, 4, 9, and 10 ADL 028244 15 ADL 028245 13, 14, and 24 E/2 of NE/4 T11N-R12E ADL 047450 5 SW/4, 6 S/2, 7, and 8 ADL 028263 16 SW/4 and S/2 of NW/4, and 21 SW/4, W/2 of SE/4, S/2 of NW/4, and NW/4 of NW/4 ADL 028262 17, 18, 19 N/2, SE/4, and N/2 SW/4, and 20 ADL 047452 28 W/2 and W/2 of E/2 ADL 047453 29 N/2 and N/2 of SE/4 Rule 1: Well Spacing (Source CO 505B.004) There shall be no restrictions as to well spacing except that no pay shall be opened to a well within 500 feet of an external property line where the owners and landowners are not the same on both sides of the line. Rule 2: Casing and Cementing Practices (Source CO 505) a. In addition to the requirements of 20 AAC 25.030, conductor casing must be set at least 75’ below surface. b. In addition to the requirements of 20 AAC 25.030, surface casing must be set at least 500’ TVD below the base of permafrost. Rule 3: Automatic Shut-in Equipment (Rescinded by Other Order No. 66) Rule 4: Common Production Facilities and Surface Commingling (Source CO 505B.002) a. Production from the Schrader Bluff Oil Pool may be commingled with production from Prudhoe Bay Oil Pool, and other oil pools located in the Prudhoe Bay Unit in surface facilities prior to custody transfer. b. The Prudhoe Bay Unit Western Operating Metering Plan, described by letter from BPXA dated April 23, 2002, and detailed within the PBU Western Satellite Production Metering Plan – Policies and Procedures Document” dated August 1, 2002, is approved for allocation of production from Schrader Bluff Oil Pool wells. Conservation Order 505C August 30, 2023 Page 5 of 8 c. All Schrader Bluff Oil Pool wells must use the Gathering Center 2 well allocation factor for oil, gas, and water. d. All wells must be tested a minimum of once per month. The AOGCC may require more frequent or longer tests if the allocation quality deteriorates. e. Technical process review meetings shall be held at least annually. Rule 5: Reservoir Pressure Monitoring (Source CO 505B.002) a. An Annual Pressure Surveillance Plan shall be submitted to the AOGCC in conjunction with the Annual Schrader Bluff Oil Pool Reservoir Surveillance Report by September 15 of each year. This plan will contain the number and approximate location of pressure surveys anticipated for the next plan year, and it will be subject to approval by the AOGCC by October 15, of that year. These surveys are needed to effectively monitor reservoir pressure within the OA-SBOP. The minimum number of pressure surveys performed each year shall equal the number of Representative Areas (currently active – 1, 1A, 2, 2A, and 5S, currently inactive – 6N, 6S, 9, 8, 4, 5N, 3A, 3N, and 3S as depicted on Map 2 of the October 23, 2018, application) within the OA-SBOP that contain active wells. The reservoir pressure datum will be 4400’ TVDss. b. Transient pressure surveys obtained by a shut-in build-up test, an injection well pressure fall- off test, a multi-rate test, or an interference test are acceptable. Calculation of bottom-hole pressures from surface data will be permitted for any well on water injection. Other quantitative methods may be administratively approved by the AOGCC. c. Data and results from pressure surveys shall be submitted with the annual reservoir surveillance report. All data necessary for analysis of each survey need not be submitted with the report but must be available to the AOGCC upon request. d. Results and data from special reservoir pressure monitoring tests shall also be submitted in accordance with part (c) of this rule. Rule 6: Gas-Oil Ratio Exemption (Source CO 505) Wells producing from the Schrader Bluff Oil Pool are exempt from the gas-oil-ratio limits of 20 AAC 25.240 (a) so long as requirements of 20 AAC 25.240 (b) are met. Rule 7: Enhanced Oil Recovery or Reservoir Pressure Maintenance Operations (Source CO 505A) Waterflood is required and enriched gas injection is approved for purposes of pressure maintenance and enhanced oil recovery in the Schrader Bluff Oil Pool. Production and injection operations must ensure the average reservoir pressure is maintained above the bubble point. Rule 8: Multiple Completion of Injection Wells (Source CO 505A.001) a. Injectors may be completed to allow for simultaneous injection in multiple pools within the same wellbore so long as mechanical isolation between pools is demonstrated and approved by the AOGCC. b. Prior to initiation of co-mingled injection, the AOGCC must approve methods for allocation Conservation Order 505C August 30, 2023 Page 6 of 8 of injection to separate pools. c. Results of logs or surveys used for determining the allocation of injection between pools, if applicable, must be supplied in the annual reservoir surveillance report. d. An approved injection order is required prior to commencement of injection in each pool. Rule 9: Annual Reservoir Review (Source CO 505A) An annual report must be filed by September 15 of each year. The report must include future development plans, reservoir depletion plans, and surveillance information for the period July 1 of the prior calendar year through June 30 of the current calendar year (except the report due on September 15, 2006, must cover the period from January 2005 through June 30, 2006), and must include: a. voidage balance by month of produced and injected fluids, and cumulative status; b. reservoir pressure map at datum, summary and analysis of reservoir pressure surveys within the pool; c. results and, where appropriate, analysis of production and injection surveys, tracer surveys, observation well surveys, and any other special monitoring; d. review of pool production allocation factors and issues over the prior year; e. progress of enhanced recovery project implementation and reservoir management summary including results of reservoir simulation studies; f. progress of plans and tests to expand the productive limits of the pool, including any work within the Prince Creek Formation; and g. results of monitoring to determine enriched gas injectant breakthrough to offset producers. The Operator shall schedule and conduct a yearly technical review meeting, on or about November 1, with the AOGCC to discuss the report contents and to review items that may require AOGCC action during the coming year. The AOGCC may conduct audits of technical data and analyses used in support of surveillance conclusions and reservoir depletion plans. Rule 10: Waiver of "Application for Sundry Approvals" Requirement for Workover Operations (Superseded by CO 556A) Rule 11: Annular Pressures (Source CO 505B.003) a. At the time of installation or replacement, the operator shall conduct and document a pressure test of tubulars and completion equipment in each production well that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each production well daily to check for sustained pressure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for AOGCC inspection. c. The operator shall notify the AOGCC within three working days after the operator identifies a well as having (1) sustained inner annulus pressure that exceeds 2500 psig for wells processed through the Lisburne Processing Center and 2100 psig for all other production wells, or (2) sustained outer annulus pressure that exceeds 1000 psig. Conservation Order 505C August 30, 2023 Page 7 of 8 d. The AOGCC may require the operator to submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action or increased surveillance for any production well having sustained pressure that exceeds a limit set out in paragraph (c) of this rule. The operator shall give the AOGCC notice consistent with the requirements of Industry Guidance Bulleting 10-01A of the testing schedule to allow the AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a production well that exceeds 45% of the burst pressure rating of the well’s production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well’s surface casing for outer annulus pressure, the operator shall notify the AOGCC within three working days and take corrective action. Unless well conditions require the operator to take emergency corrective action before AOGCC approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action. The operator shall give the AOGCC sufficient notice of the testing schedule to allow the AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under (d) or (e) of this rule, before a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient degree (1) that the inner annulus pressure at operating temperature will be below 2000 psig, and (2) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to (c) but not (e) of this rule may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under (c) of this rule, unless the AOGCC prescribes a different limit. g. For purposes of this rule, 1. “inner annulus” means the space in a well between tubing and production casing; 2. “outer annulus” means the space in a well between production casing and surface casing; 3. “sustained pressure” means pressure that (A) is measurable at the casing head of an annulus, (B) is not caused solely by temperature fluctuations, and (C) is not pressure that has been applied intentionally. Rule 12: Use of Multiphase Flowmeters in Well Testing (Sources CO 547.004 and 547.005) For purposes of satisfying well test measurement requirements of 20 AAC 25.230, the use of the Weatherford Generation 2.0 Multiphase Metering System and FMC Technologies multiphase Flow Meter System (EMS MPM) is approved in accordance with the respective administrative approvals. Rule 13: Administrative Action (Superseded by 20 AAC 25.566(d)) DONE at Anchorage, Alaska and dated August 30, 2023. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.08.30 13:21:35 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.08.30 13:37:53 -08'00' Gregory Wilson Digitally signed by Gregory Wilson Date: 2023.08.30 14:27:28 -08'00' Conservation Order 505C August 30, 2023 Page 8 of 8 RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO 23-007 and CO 23-006 By application dated April 18, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extend of the Schrader Bluff Oil Pool (SBOP) in the Prudhoe Bay Unit. Conservation Order No. 505B defines the SBOP and prescribes rules for its development. Area Injection Order No. 26B prescribes rules for the injection of fluids into the SBOP for the purpose of enhanced oil recovery. Hilcorp proposes to amend these orders to expand the map extent of the SBOP to include acreage that recent drilling appears to confirm should be part of the pool to allow the new acreage to be developed under the same rules as the existing SBOP. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for June 13, 2023, at 10:00 a.m. The hearing, which may be changed to full virtual, if necessary, will be held in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 Conference ID: 431 265 009#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on May 10, 2023. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after May 11, 2023. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on June 2, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the June 13, 2023, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than June 8, 2023. Brett W. Huber, Sr. Chair, Commissioner Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.04.20 14:36:50 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AIO-23-007 and CO-23-006 public hearing notice expansion of SBOP in PBU Date:Thursday, April 20, 2023 3:13:51 PM Attachments:AIO-23-007 and CO-23-006 public hearing notice expansion of SBOP in PBU.pdf By application dated April 18, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extend of the Schrader Bluff Oil Pool (SBOP) in the Prudhoe Bay Unit. Samantha Carlisle Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Adam Garrigus being first duly sworn on oath deposes and says that she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a copy of an adver- tisement as it was published in regular issues (and not in supplemental form) of said news- paper on AFFIDAVIT OF PUBLICATION ______________________________________ Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES ______________________________________ 04/23/2023 and that such newspaper was regularly distrib- uted to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed________________________________ Subscribed and sworn to before me this 24th day of April 2023. Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0037672 Cost: $305.8 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO 23-007 and CO 23-006 By application dated April 18, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extend of the Schrader Bluff Oil Pool (SBOP) in the Prudhoe Bay Unit. Conservation Order No. 505B defines the SBOP and prescribes rules for its development. Area Injection Order No. 26B prescribes rules for the injection of fluids into the SBOP for the purpose of enhanced oil recovery. Hilcorp proposes to amend these orders to expand the map extent of the SBOP to include acreage that recent drilling appears to confirm should be part of the pool to allow the new acreage to be developed under the same rules as the existing SBOP. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for June 13, 2023, at 10:00 a.m. The hearing, which may be changed to full virtual, if necessary, will be held in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 Conference ID: 431 265 009#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on May 10, 2023. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after May 11, 2023. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on June 2, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the June 13, 2023, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than June 8, 2023. Brett W. Huber, Sr. Chair, Commissioner Pub: Apr. 23, 2023 STATE OF ALASKA THIRD JUDICIAL DISTRICT 2024-07-14 Document Ref: F5LNB-ETRGJ-ZONFW-RMHSZ Page 8 of 39 1 North Slope, LLC Kyndall Carey Land Tech 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8386 Fax: 907/777-8301 kyndall.carey@hilcorp.com April 18, 2023 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE: Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool Dear Chair Huber: Hilcorp North Slope, LLC (“Hilcorp North Slope”), as the operator of the Prudhoe Bay Unit (“PBU”), requests Alaska Oil and Gas Conservation Commission (“AOGCC”) approval to expand the Prudhoe Bay Schrader Bluff Oil Pool (“PBSBOP”) under Conservation Order (“CO”) 505B, and Area Injection Order (“AIO”) 26B. Hilcorp North Slope submits that the requested expansions will not promote waste, cause damage, or jeopardize correlative rights. These changes are proposed based on sound engineering and geoscience principles and will not result in fluid movement outside of the authorized injection zones. Enclosed in this application is supporting information. If you need additional information, please contact Kevin Eastham at 907/777-8316. Sincerely, Kyndall Carey Land Tech Hilcorp North Slope, LLC cc: ConocoPhillips Alaska, Inc. ExxonMobil Alaska Production Inc. Chevron U.S.A. Inc. By Samantha Carlisle at 1:56 pm, Apr 18, 2023 Digitally signed by Kyndall Carey (3936) DN: cn=Kyndall Carey (3936), ou=Users Date: 2023.04.18 13:36:27 -08'00' Kyndall Carey (3936) Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 2 Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool Outline 1. Introduction 2. Prudhoe Bay Schrader Bluff Oil Pool CO and AIO History 3. Proposed Prudhoe Bay Schrader Bluff Oil Pool Affected Area Expansion 4. Development Drilling Plans List of Figures 1. Schrader Bluff Pool Type Log 2. Location Map. Proposed Expansion of CO 505B 3. Location Map. Proposed Expansion of AIO 26B 4. Figure 4a and 4b: a. Confidential: Schrader Bluff OBd Sand, Depth Structure Map b. Schrader Bluff OBd Sand Map with proposed well locations 5. Confidential: Well Log Cross Section A-A’ 6. Confidential: Seismic Cross Section B-B’ Confidentiality Request 1. Figure 4a is an interpreted depth structure map of the Schrader Bluff OBd sand over the western portion of Prudhoe Bay unit. Hilcorp North Slope requests this be held confidential because it is interpreted data. 2. Figure 5 is a well log cross section including petrophysical interpretation of log data. Hilcorp North Slope requests this be held confidential because it is interpreted data. 3. Figure 6 is a seismic cross section running from NE to SW across the area. Hilcorp North Slope requests this be held confidential because it is interpreted data. 1. Introduction Hilcorp North Slope, LLC, as the operator of the Prudhoe Bay Unit, requests Alaska Oil and Gas Conservation Commission approval to expand the Prudhoe Bay Schrader Bluff Oil Pool (“PBSBOP”) under Conservation Order (“CO”) 505B, and Area Injection Order (“AIO”) 26B. This proposed expansion area extends the western boundary of the PBSBOP to match the Prudhoe Bay Unit boundary with the Kuparuk River Unit. The proposed expansion area also includes a small area north of Prudhoe Bay Unit (PBU) Z-Pad to reflect recent drilling results (portions of Sections 5, 6, and 8 in T11N R12E). Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 3 2. Prudhoe Bay Schrader Bluff Oil Pool CO and AIO History CO 505B, issued May 2010, supersedes, and replaces CO 505 (dated January 2004) and CO 505A (dated April 2006) only insofar as CO 505B concerns the Schrader Bluff Oil Pool. The Schrader Bluff Oil Pool includes the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 4,549 feet and 5,106 feet in the PBU V-201 well (Figure 1). Underground injection of fluids as described in BP Exploration Alaska Inc.’s applications for Area Injection Orders AIO 26 and AIO 26A are permitted, subject to the conditions, limitations and requirements established in AIO 26B, dated February 2021, for the Schrader Bluff Oil Pool. Conservation Order History x CO 505B.001: In January 2016, the Commission authorized the Prudhoe Bay Unit (PBU) operator’s request to waive monthly production allocation reporting requirements for the Schrader Bluff Oil Pool and several others. x CO 505B.002: In May 2019, the Commission authorized an amendment to Rules 4 and 5 to conform the Schrader Bluff Oil Pool rules for consistency with the well testing requirements and pressure survey requirements in the PBU to improve efficiency of field management for the operator and compliance oversight of the Commission. x CO 505B.003: In October 2020, the Commission repealed and replaced Rule 11 amending normal operating limits for inner annulus pressure. x CO 505B.004: In September 2021, the Commission repealed and replaced Rule 1 amending well spacing requirements. Area Injection Order History x AIO 26B.001: In September 2012, the Commission modified the original order by repealing and replacing Rule 3 Authorized Fluids for EOR and pressure maintenance. x AIO 26B.002: In June 2013, the Commission modified 26B.001 by repealing and replacing Rule 3 Authorized Fluids for EOR and pressure maintenance. x AIO 26B.003: In August 2020, the Commission authorized the injection of polymers in well L-213 (PTD 206-053) at the PBU operator’s request, subject to conditions in the order. x AIO 26B.004: In January 2021, the Commission granted the PBU operator’s request to continue water injection in well L-221 (PTD 2080310), subject to conditions in the order. x Corrected AIO 26B: In February 2021, the Commission issued an errata notice. The notice notes that AIO 26A.002 eliminated the word “water” from Rule 6 of AIO 26A, however, when AIO 26B was issued, the word water was only removed from the title of the rule and not from the body of the rule itself. The Commission issued a corrected AIO 26B on February 3, 2021. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 4 x AIO 26B.005: In June 2021, the Commission granted Hilcorp North Slope’s request to continue WAG injection in well V-218 (PTD 2070400), subject to conditions in the order. x AIO 26B.006: In May 2022, the Commission granted Hilcorp North Slope’s request to continue WAG injection in well V-221 (PTD 2050130), subject to conditions in the order. x AIO 26B.007: In August 2022, the Commission granted Hilcorp North Slope’s request to continue WAG injection in well V-213A (PTD 2220010), subject to conditions in the order. AIO 26B.0007 was originally issued on May 23, 2022 and was amended by the August 18, 2023 version. x AIO 26B.008: In January 2023, the Commission granted Hilcorp North Slope’s request to continue WAG injection in well Z-223 (PTD 2220800), subject to conditions in the order. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 5 Figure 1. Prudhoe Bay Schrader Bluff Oil Pool Type Log, V-201. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 6 3. Proposed Prudhoe Bay Schrader Bluff Oil Pool Affected Area Expansion Hilcorp North Slope proposes the area subject to the conservation order for the PBSBOP (CO 505B), and corresponding area injection order (AIO 26B) be expanded, so that these orders apply to the following: Prudhoe Bay Schrader Bluff Oil Pool Proposed Affected Area T12N-R10E ADL 25637 Sec 13, 24 T12N-R11E ADL 28238 Sec 25 (SW/4), 26, 35, 36 ADL 28239 Sec 27, 28, 33, 34 ADL 47446 Sec 17, 18, 19, 20 ADL 47447 Sec 16 (S/2, NW/4, S/2NE/4), 21, 22 ADL 47449 Sec 29, 30, 32 ADL 390067 Sec 14 (S/2S/2), 23, 24 (SW/4, SW/4NW/4) T11N-R11E ADL 28240 Sec 1, 2, 11, 12 ADL 28241 Sec 3, 4, 9, 10 ADL 28244 Sec 15 ADL 28245 Sec 13, 14, 24 (E/2NE/4) T11N-R12E ADL 28262 Sec 17, 18, 19 (N/2, SE/4, N/2SW/4), 20 ADL 28263 Sec 16 (SW/4, S/2NW/4), 21 (W/2, W/2SE/4) ADL 47450 Sec 5 (SW/4), 6 (S/2), 7, 8 ADL 47452 Sec 28 (W/2, W/2E/2) ADL 47453 Sec 29 (N/2, N/2SE/4) Figure 2 is a map showing the proposed changes to CO 505B Prudhoe Bay Schrader Bluff Oil Pool Affected Area. Figure 3 is a map showing the proposed changes to AIO 26B Prudhoe Bay Schrader Bluff Oil Pool Affected Area. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 7 Figure 2. Location Map. Proposed expansion of CO 505B Prudhoe Bay Schrader Bluff Oil Pool Affected Area. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 8 Figure 3. Location Map. Proposed expansion of AIO 26B Prudhoe Bay Schrader Bluff Oil Pool Affected Area. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 9 4. Development Drilling Plans The expansion of the PBSBOP will mainly include extending the oil pool to the west to match the Prudhoe Bay unit boundary with Kuparuk River Unit. This expansion would allow for development of the Schrader Bluff reservoirs from the recently expanded L-Pad. Figures 4a and 4b contains a series of dashed blue and green lines that represent drilling opportunities in the proposed area of PBSBOP expansion. Dashed green lines represent proposed horizontal producers and dashed blue lines represent proposed horizontal injectors. Drilling opportunities due west of L-Pad include OBc and OBd sand targets based on oil shows seen in L-112, L-100, and NWE1-01 (see Figure 5). Figure 6 shows the seismic data in this area. Drilling opportunities south of L-Pad likewise will target the OBc and OBd sands based on oil shows observed in L-121. Future opportunities in shallower Schrader Bluff sands (OA through OBb sands) will be evaluated while drilling OBc and OBd sand targets in the proposed expansion areas. Minor expansion to the PBSBOP is also proposed due east of V- Pad and due north of Z-Pad (Figure 4b). Drilling opportunities in these areas follows up oil identified outside the current defined pool by successful delineation seen in V-227A (drilled in 2022) and W-241 (drilled in 2023). An expanded PBSBOP in these areas would allow us to target unswept oil with future injectors in all Schrader Bluff sands. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool April 18, 2023 11 Figure 4b. Schrader Bluff OBd Sand Map with proposed well locations. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Kyndall Carey To:Roby, David S (OGC) Cc:Davies, Stephen F (OGC); Dewhurst, Andrew D (OGC); Guhl, Meredith D (OGC); Wallace, Chris D (OGC); Rixse, Melvin G (OGC) Subject:RE: [EXTERNAL] RE: Schrader Bluff Oil Pool Expansion Application Date:Monday, August 28, 2023 11:54:59 AM Attachments:image001.png image002.png image003.png Dave, Thank you for highlighting this issue. I will submit a request to modify my application for the Schrader Bluff Oil Pool affected area expansion to exclude the 40 acres already part of the Polaris Oil Pool. Thank you, Kyndall Cell: 907-830-1409 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Monday, August 28, 2023 10:54 AM To: Kyndall Carey <Kyndall.Carey@hilcorp.com> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov>; Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Guhl, Meredith D (OGC) <meredith.guhl@alaska.gov>; Wallace, Chris D (OGC) <chris.wallace@alaska.gov>; Rixse, Melvin G (OGC) <melvin.rixse@alaska.gov> Subject: RE: [EXTERNAL] RE: Schrader Bluff Oil Pool Expansion Application Hi Kyndall, We were putting the finishing touches on the Schrader Bluff Orion pool and AIO expansion and noticed an issue. The issue is that part of the proposed expansion area is already in the Polaris Oil Pool and we can’t have the same acreage covering the same strata be in two separate pools. Below is part of the legal description for the affected area of AIO 25A and CO 484A, the highlighted part is where the overlap is.: Here’s what’s currently in CO 505B and AIO 26B for the Schrader Bluff Orion in the same township and range, there’s no conflict between it and the Polaris affected area: And here’s what’s in your application for the affected area expansion, again the highlight shows where the overlap is: CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. So there’s 40 acres (the NE/4 of the NW/4 of section 21) where the proposed Orion expansion would overlap with the existing Polaris pool and both pools include the Schrader Bluff Formation as part of the pool (Polaris also includes some Ugnu Formation) which by definition would mean that the two pools are actually one. To take care of the immediate issue we need to eliminate the overlap for us to be able to approve the pool/AIO expansion, so we’ll need for you to either request a modification to your proposed affected area that eliminates the overlap or request we amend Polaris’ affected area to remove the overlap area from it. Longer term, we need to seriously consider merging Polaris and Orion into a single pool, and figure out what to do about the difference in the vertical extent of the two pools and the differences in what’s approved in the AIOs for each pool. Regards, Dave Roby (907)793-1232 From: Kyndall Carey <Kyndall.Carey@hilcorp.com> Sent: Monday, August 14, 2023 11:12 AM To: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: RE: [EXTERNAL] RE: Schrader Bluff Oil Pool Expansion Application Thanks, Dave. We’re quickly approaching the end of our 30 day limit on pre-production of L-254. We are hoping to inject in the next 2 weeks and need the AIO expanded to do that. Thanks again for working it. Thank you, Kyndall Cell: 907-830-1409 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Monday, August 14, 2023 11:11 AM To: Kyndall Carey <Kyndall.Carey@hilcorp.com> Subject: [EXTERNAL] RE: Schrader Bluff Oil Pool Expansion Application Hi Kyndall, Sort I haven’t gotten this done yet. I plan to get it off my desk in the next day or so. Regards, Dave Roby (907)793-1232 From: Kyndall Carey <Kyndall.Carey@hilcorp.com> Sent: Friday, August 11, 2023 8:54 AM To: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: Schrader Bluff Oil Pool Expansion Application Hi Dave, I wanted to check in on the status of the SBOP expansion application. Thanks for any news. I hope you have a great weekend. Thank you, Kyndall Carey Land Tech Hilcorp Alaska, LLC Cell: 907-830-1409 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message inerror, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listedabove, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message inerror, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listedabove, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect itssystems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message inerror, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listedabove, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect itssystems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. North Slope, LLC Kyndall Carey Land Tech 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8386 Fax: 907/777-8301 kyndall.carey@hilcorp.com August 28, 2023 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE: Amendment to Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool Dear Chair Huber: Hilcorp North Slope, LLC (“Hilcorp North Slope”), as the operator of the Prudhoe Bay Unit (“PBU”), would like to amend its application filed on April 18, 2023 ("Original Application"). The amendment is to the proposed expanded affected area of the Prudhoe Bay Schrader Bluff Oil Pool (“PBSBOP”) under Conservation Order (“CO”) 505B, and Area Injection Order (“AIO”) 26B. The Original Application erroneously included 40 acres of land currently part of the Prudhoe Bay Polaris Oil Pool affected area under CO 484A and AIO 25A. Enclosed in this application is the amended legal descriptions and maps for the proposed affected area of the PBSBOP. Sincerely, Kyndall Carey Land Tech Hilcorp North Slope, LLC Digitally signed by Kyndall Carey (3936) DN: cn=Kyndall Carey (3936) Date: 2023.08.28 15:48:53 - 08'00' Kyndall Carey (3936) Amendment to Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool August 28, 2023 2 . Hilcorp North Slope proposes the area subject to the conservation order for the PBSBOP (CO 505B), and corresponding area injection order (AIO 26B) be expanded, so that these orders apply to the following: Prudhoe Bay Schrader Bluff Oil Pool Proposed Affected Area T12N-R10E ADL 25637 Sec 13, 24 T12N-R11E ADL 28238 Sec 25 (SW/4), 26, 35, 36 ADL 28239 Sec 27, 28, 33, 34 ADL 47446 Sec 17, 18, 19, 20 ADL 47447 Sec 16 (S/2, NW/4, S/2NE/4), 21, 22 ADL 47449 Sec 29, 30, 32 ADL 390067 Sec 14 (S/2S/2), 23, 24 (SW/4, SW/4NW/4) T11N-R11E ADL 28240 Sec 1, 2, 11, 12 ADL 28241 Sec 3, 4, 9, 10 ADL 28244 Sec 15 ADL 28245 Sec 13, 14, 24 (E/2NE/4) T11N-R12E ADL 28262 Sec 17, 18, 19 (N/2, SE/4, N/2SW/4), 20 ADL 28263 Sec 16 (SW/4, S/2NW/4), 21 (SW/4, W/2SE/4, S/2NW/4, NW/4NW/4) ADL 47450 Sec 5 (SW/4), 6 (S/2), 7, 8 ADL 47452 Sec 28 (W/2, W/2E/2) ADL 47453 Sec 29 (N/2, N/2SE/4) The highlighted area above is the change from the Original Application in this amendment. Figure 1 is an updated map showing the proposed changes to CO 505B Prudhoe Bay Schrader Bluff Oil Pool affected area. Figure 2 is an updated map showing the proposed changes to AIO 26B Prudhoe Bay Schrader Bluff Oil Pool affected area. Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool August 28, 2023 Figure 1. Location Map. Proposed expansion of CO 505B Prudhoe Bay Schrader Bluff Oil Pool Affected Area. Amendment to Application for Expansion of the Prudhoe Bay Schrader Bluff Oil Pool August 28, 2023 4 Figure 2. Location Map. Proposed expansion of AIO 26B Prudhoe Bay Schrader Bluff Oil Pool Affected Area.