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Home My WebLink About212-109 • SOF Tit, • • 0)1" IyyyAs$ THE STATE Alaska Oil and Gas ° /� LASKA Conservation Commission __ =--� 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 ALA�� Fax: 907.276.7542 www.aogcc.alaska.gov Matthew Ganley Unaatuq, LLC. 4600 Debarr Road, Suite 200 Anchorage, AK 99508 Re: Pilgrim Hot Springs Field, PS 12-2S ANNEX AUG ?017, Permit to Drill Number: 212-109 Sundry Number: 317-340 Dear Mr. Ganley: 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. Suspension is valid until August 11, 2022. Thirty days prior to that date, operator must submit a new Sundry Application for continued suspension. The application must contain sufficient information to determine that continued suspension of the PS 12-1, PS 12-2 and PS 12-3 wells are appropriate under 20 AAC 25.110. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Hollis S. French Chair, Commissioner ♦". DATED this 11 day of August, 2017. RBDMS 1,`' AUG 1 4 2017 ID i a i STATE OF ALASKA �� ' Q 17 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 1GOC 20 AAC 25.280 1.Type of Request: Abandon 0 Plug Perforations❑ Fracture Stimulate❑ Repair Well 0 Operations shutdown❑ Suspend ® Perforate 0 Other Stimulate 0 Pull Tubing 0 Change Approved Program 0 Plug for Redrill 0 Perforate New Pool ❑ Re-enter Susp Well 0 Alter Casing 0 Other: _❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number. UNAATUQ,LLC Exploratory ® Development ❑ 212-109 3.Address: 4600 Deberr Road6.API Number: Suite 200 Stratigraphic Li Service ❑ Anchorage,AK 50-031-00009-00-00 7.If perforating: 99508 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No ® PS-12-2 (Formerly PS-12-3) 9.Property Designation(Lease Number): 10.Field/Pool(s): Private/Unaatuq,LLC(U.S.S.565) Pilgrim Hot Springs 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth ND(ft): Effective Depth MD: Effective Depth ND: MPSP(psi): Plugs(MD): Junk(MD): 1294 ft 1294 ft 1294 ft 1294 ft Casing Length Size MD TVD Burst Collapse Structural Conductor 10 10 3/4 in 10 ft 10 ft Surface 204 ft 6 5/8 in 204 ft 204 ft Intermediate 1004 ft 4.5 in 1004 ft 1004 ft Production 1294 ft 2.19 in 1294 ft 1294 ft Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size: Tubing Grade: Tubing MD(ft): WA 0 ''%I kS N/A N/A N/A N/A Packers and SSSV Type: Packers and SSSV MD(ft)and ND(ft): 12.Attachments: Proposal Summary 0 Wellbore schematic ® 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory Stratigraphic❑ Development❑ Service ❑ 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended al 16.Verbal Approval: Date: GAS 0 WAG 0 GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17. I hereby certify that the foregoing is true and the procedure approved herein will not be deviated from without prior written approval. Authorized Name: Matthew Ganley Contact Name: Matthew Ganley Authorized Title: Contact Email: mganley@berinystraits.com / Contact Phone: (907)344-7212 Authorized Signature: 41,F Date: 0719/2017 4110 COMMISSION USE ONLY Conditions of approval: Notify C. ion so that a representative may witness Sundry Number.3`7.3 G Plug Integrity ❑ BOP Test❑ Mechanical Integrity Test ❑ Location Clearance ❑ Other l cZv.L , :'UL v�S. �.�.-, Liti. J Post Initial Injection MIT Req'd? Yes ❑ No 0 jf Spacing Exception Required? Yes ❑ No Vi Subsequent Form Required: N, ^u,,„ y`¢.r;a.e i.+c.� APPROVED BY r 1 „ 1,q Approved by: COMMISSIONER THE COMMISSION Date: 1 t �, ,�1 .611010- ��o/� Vic. g i/-,'7 !� Submit Form and Form 10-403 Revised 4/2017 Approved application is valid for 12 months from the date of approval. Attachments in Duplicate R 161 N AL RBDMS AUG 142017 • • . 10 1 BERING RECEIVED STRAITS * Native Corporation ,JUL 2 4 2017 July 19th, 2017 AOGCC Hollis S. French, Commissioner Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, AK 99501 RE: Request for Suspended status for wells PS-12-1 (212-077), PS-12-2 (212-109), and PS-12-3 212-126). Ms. Bettis: This letter is in response to your email of June 13, 2017, which requested submission of Application for Sundry Approval for three temperature gradient wells at Pilgrim Hot Springs. In response, I am forwarding two copies of the required information: 1) An Application for Sundry Approvals (Form 10-403)for each well (PS12-I, PS12-2, PS12-3, PS13-1); 2) A well schematic diagram for each well; 3) A letter from Graphite One, regarding potential power development at Pilgrim Hot Springs. 4) A summary sheet noting the justification for maintaining the current status of each well. 5) Report dated October 16, 2014, submitted by the Alaska Center for Energy and Power and titled, Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utilization. The PS-12 wells represent a significant investment and the plugging and abandoning of these assets would set back any future program that might use the resource for electrical generation or on-site power and heat. As an example of the need for maintaining the wells, Unaatuq, LLC received a grant from USDA/NRCS in 2016 for an agricultural pilot program that is expected to utilize on-site electrical power and heat for the region's food security. In addition to the agricultural project,a mining interest is considering working with Unaatuq to establish a geothermal plant that could produce power for their graphite project some 20 miles from the Hot Springs. I have attached a letter from Graphite One expressing their interest in working on such a program. To summarize,we are requesting that the wells PS-12-1 (212-077), PS-12-2(212-109), and PS-12-3 212- 126), remain in Suspended Status due to the ongoing agricultural program there(and the future need for on-site power and heat),the potential for powering the Graphite One mining program, and the need to 4600 DeBarr Road,Suite 200 • Anchorage. Alaska 99508-3126 • 907.563.3788 • Fax 907.563.2742 • www.berin suaits.com • S . •! � BERING STRoAIT,S keep these wells suspended for monitoring the reservoir when PS-13-1 (213-102) is brought into production. I appreciate the work of the Commission and will submit additional materials to support our request if needed. Regards, i Matt Ga - VP Media and External Affairs Bering Straits Native Corporation (Managing Partner for Unaatuq, LLC) 4600 DeBarr Road,Suite 200 • Anchorage.Alaska 99508-3126 • 907.563.3788 • Fax 907.563.2742 • www.beringstraits.com • • High-pressure ball valve • ` a 6 518-in OD conductor casing cemented to 200 ft below i land surface 4.5-in OD casing _ cemented to 1000 ft below land surface 2.19-in OD casing cemented from land surface to 160 ft below land surface. Grouted from 160 to 1294 ft below land surface. 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O • l • • Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utilization October 17, 2014 By the Alaska Center for Energy and Power Since 2010,the Alaska Center for Energy and Power has been leading geothermal exploration efforts at Pilgrim Hot Springs. The property is owned by Unaatuq LLC., a partnership of seven organizations based on the Seward Peninsula. In 2012 and 2013 four wells were drilled on the property which fall under the jurisdiction of the Alaska Oil and Gas Conservation Commission. The wells drilled during this period are best left open and operational as a means to monitor the geothermal aquifer, and in the case of PS13-1 provide geothermal fluid for onsite use. Three of these wells, called PS12-1, PS12-2, and PS 12-3 were drilled as temperature gradient holes to High-pressors ball valve --------+ P - S Hlgh•pressure ball valve Vt40.4 ..... 6 5Than OD conductor casing ' '?t , 6 578-in OD conductor cas, cemented to 100 ft below cemented to 200 ft beinw land surface 1111 land surface -_-- 4,5-in ODcasirtg cemented to 1000 M A below land surface 4.5•in OD casing k _ cemented to 1000 ft below land surface 2 19-in 00 casing cemented *, from land surface to 160 fl below land surface.Grouted horn 11in to 1294 ft t'1ow land surface. Bottom cap--- MN — Figure 1.PS 12-1(left)and PS 12-2(right) depths ranging from 1000 feet to 1294 feet. Diagrams of these wells are shown in figures 1-2. These wells are constructed with sealed casing which is plugged at the bottom. The casing is not perforated and the wells are not open to the formation. They do not have ability to flow artesian as J other perforated wells at the site do. Once the wells were completed,the casing was filled with water and they serve as temperature gradient monitoring wells. Temperature logs, like the one shown in figure 3 are created using the temperature profiles measured in the wells. These wells are very useful for monitoring subtle long term changes in the geothermal field. • Currently,there are plans to develop Pilgrim Hot Springs to generate electricity and export this power to Nome. A private developer, under the name Pilgrim Geothermal LLC., has signed a power purchase agreement with Nome Joint Utility Systems to supply up to two MW of electrical power to the utility. This would 8518-in 00 conductor casing cemented to 144ft below require the extraction and reinjection of large amounts of land surface geothermal fluid at Pilgrim Hot Springs. In order to maintain the long term health of the geothermal field, careful monitoring of the aquifer is necessary. The temperature gradient wells that were drilled in 2012 are ideally situated to monitor the temperatures of both the shallow and the deep aquifers at Pilgrim Hot Springs. 2.19-in OD casing cemented from land surface to 993 n. Because these wells are sealed from the aquifer,the risks associated with leaving these wells open are extremely limited. Rubber cement plug in bottom of casing In addition to this larger geothermal power generation 5518-in hole facility being explored,the property owners of Pilgrim Hot drilled to1183 m Grout-tined from Springs,are very interested in developing the site for 993 to 1193 ft. Figure 2.PS 12-3 small scale tourism use. Some of the uses for the geothermal waters that have been discussed include a small geothermal power plant for Temperature Profile of PS12-2 onsite electrical power generation,a small geothermal on 6 September 2014 district heating loop to provide space heating and snow melting, Temp(ac) and of course hot soaking pools. 0 20 40 60 80 100 Just as in the large scale 0 geothermal power plant scenario 200 described above, using the 400 LL geothermal resource for onsite -- 600 c 800 production will require careful monitoring of the geothermal 1000 resource. The temperature 1200 gradient wells that were drilled 1400 in 2012 provide an excellent tool Figure 3.The temperature profile of PS 12-2 shows gives the static state to do this with. temperature of the geothermal aquifer • • PS13-1 was drilled in 2013. It was originally drilled to bedrock at 1036 feet, but when temperatures at this depth were cooler than had been hoped for,the well was completed in the shallow thermal aquifer. This well, shown in figure 4 was completed with 14" casing and well screen. The well has an artesian flow rate of approximately 70 gpm at 175° F.The closed in pressure at the wellhead is approximately 3.5 PSI. In September of 2013 the well was flow tested at 300 gpm, and had productivity measured at 27.5 gpm/psi, indicating a good productive well. This well has excellent potential to produce geothermal fluid for onsite district heating and power production purposes which the landowners are in the process of evaluating. PS-13-1 Completion Well Diagram ----kr-casing to surface Gr°vnd L'vie =—24'Conductor Casing 21'--- --A-18Surface Casing Gravel Backfill—=- Class C Neat Cement 1'Bentonite Crumbles Packer at Sb' 18" 188' I I + I j ) I )50'wellScreen S'Tai$Pipe we'Plate I I I r� 238'MD Welded to Bottom 243'MD —2'Cement Plug Back Filled with Sand SOS'MD- 231'of 2"Galvanized Pipe --1036'MD Figure 4.PS 13-1 well schematic • � • J ONE e.EfOt 0.t.ES March 21,2017 Bering Straits Native Corporation PO Box 1008 4600 DeBarr Road,Suite 200 Nome,Alaska 99762 Anchorage,AK 99508 Dear Gail, Pilgrim Hot Springs Geothermal Project Graphite One Resources is interested in the potential for Pilgrim Hot Springs to provide geothermally generated power to our proposed Graphite Creek Project and wish to explore this possibility with Bering Straits Native Corporation in its role as managing partner of Unaatuq, LLC, the owner of Pilgrim Hot Springs. Graphite One Resources Inc. continues to develop its Graphite One Project with its proposed graphite mine and mineral processing plant to be situated about 20 miles west of Pilgrim Hot Springs. A power demand of six megawatts at full production was estimated in total for these two facilities in the project's recently released Preliminary Economic Assessment ("PEA"), the first engineering report assessing the economic viability of the project's graphite resources. This study assumes the power requirements would be supplied by three,two-megawatt, diesel fired generators. We wish to explore with you the possibility of a geothermal generation facility at Pilgrim Hot Springs supplying all,or some of,this estimated demand. The Graphite One Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade coated spherical graphite ("CSG") primarily for the lithium-ion electric vehicle battery market. As set forth in the PEA, potential graphite mineralization mined from the Company's Graphite Creek Property, is expected to be processed into concentrate at a plant adjacent to the mine. The Graphite Creek Property is situated about 37 miles north of Nome. CSG and other value-added graphite products, would likely be manufactured from the concentrate at the Company's proposed graphite product manufacturing facility,the location of which is the subject of further study and analysis. We look forward to the opportunity to work with you on this. An economic alternative to diesel generated power would be a major enhancement to our project. Yours truly, Doug Smith 4:7-7- " Executive Chairman GRAPHITE ONE RESOURCES INC. 604.240.6016 DougS@graphiteoneresources.com 600—777 Hornby Street Vancouver,British Columbia l V6Z 154 • • Bettis, Patricia K (DOA) 7T1 c2,l2.—/07/ From: Bettis, Patricia K(DOA) Sent: Tuesday,June 13, 2017 2:28 PM To: Matt Ganley Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126) Matt, Please submit immediately the required sundry applications for PS 12-1 (PTD 212-077), PS 12-2 (212-109), and PS 12-3 (PTD 212-126). See emails below. Original Message SCANNED ilia From: Matt Ganley [mailto:mganley@beringstraits.com] lG Viµ. Sent:Thursday, May 4, 2017 2:46 PM To: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov> Subject: RE: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Thank you Patricia. I will send those along. Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road,Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com ( www.beringstraits.com WARNING:The information contained in this email (including any attachments) is CONFIDENTIAL and may be PRIVILEGED. If you are not the intended recipient of this email,you may not read, retain, copy,or distribute this email. If you have received this email in error, please advise us by return email and call the sender at 907.632.7197.Thank you. From: Bettis, Patricia K(DOA)<mailto:patricia.bettis@alaska.gov> Sent:Thursday, May 4, 2017 3:40 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Good afternoon Matt, Thank you for your letter dated April 12, 2017 concerning the above mentioned Pilgrim Springs wells. By letters dated January 18, 2017, Sundry Applications No.315-746, No.315-747, and No. 315-748 were denied as the AOGCC lacked sufficient information to determine that suspension of the PS 12-1, PS 12-2 and PS 12-3 wells was appropriate under 20 AAC 25.110(a)(2). Within 20 days of that date, Bering Straits Native Corporation had the right to file applications for reconsideration. 1 • S In light of Graphite One Resources Inc. showing an interest in the potential for Pilgrim Hot Springs to provide geothermally generate power to the proposed Graphite Creek Project, please submit new sundry applications for the suspension of the wells under 20 AAC 25.110. A sundry application must be submitted for each well. If you have any questions concerning the matter, please do not hesitate to contact me. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Ste 100 Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it,and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 2 • • Bettis, Patricia K (DOA) T1 02A-JDq From: Bettis, Patricia K(DOA) Sent: Tuesday,July 11, 2017 3:22 PM To: Matt Ganley Subject: RE: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126) Matt, The AOGCC will not process the sundry applications until the original documents are received. Please forward ASAP. Thank you, Patricia Original Message 31.W From: Matt Ganley [mailto:mganley@beringstraits.com] Sent: Saturday,June 24, 2017 12:49 PM To: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov> Subject: RE: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126) Patricia- Please find, attached the sundry applications(Form 10-403 and supporting materials)for the Temperature gradient wells at Pilgrim Hot Springs: PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126). I am sending the original documents via standard USPS to your office address. If you require any additional information please let me know. Regards, Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road,Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 ( Mobile 907.632.7197 mganley@beringstraits.com I www.beringstraits.com WARNING:The information contained in this email (including any attachments) is CONFIDENTIAL and may be PRIVILEGED. If you are not the intended recipient of this email,you may not read, retain, copy,or distribute this email. If you have received this email in error, please advise us by return email and call the sender at 907.632.7197.Thank you. Original Message From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent:Tuesday,June 13, 2017 2:28 PM To: Matt Ganley Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126) 1 • • Matt, Please submit immediately the required sundry applications for PS 12-1 (PTD 212-077), PS 12-2 (212-109), and PS 12-3 (PTD 212-126). See emails below. Original Message From: Matt Ganley [mailto:mganley@beringstraits.com] Sent:Thursday, May 4, 20172:46 PM To: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov> Subject: RE: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Thank you Patricia. I will send those along. Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road, Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com I www.beringstraits.com WARNING:The information contained in this email (including any attachments) is CONFIDENTIAL and may be PRIVILEGED. If you are not the intended recipient of this email,you may not read, retain, copy, or distribute this email. If you have received this email in error, please advise us by return email and call the sender at 907.632.7197.Thank you. From: Bettis, Patricia K(DOA)<mailto:patricia.bettis@alaska.gov> Sent:Thursday, May 4,2017 3:40 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Good afternoon Matt, Thank you for your letter dated April 12, 2017 concerning the above mentioned Pilgrim Springs wells. By letters dated January 18, 2017, Sundry Applications No. 315-746, No.315-747, and No. 315-748 were denied as the AOGCC lacked sufficient information to determine that suspension of the PS 12-1, PS 12-2 and PS 12-3 wells was appropriate under 20 AAC 25.110(a)(2). Within 20 days of that date, Bering Straits Native Corporation had the right to file applications for reconsideration. In light of Graphite One Resources Inc. showing an interest in the potential for Pilgrim Hot Springs to provide geothermally generate power to the proposed Graphite Creek Project, please submit new sundry applications for the suspension of the wells under 20 AAC 25.110. A sundry application must be submitted for each well. If you have any questions concerning the matter, please do not hesitate to contact me. Thank you, Patricia Patricia Bettis 2 • Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Ste 100 Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 3 Bettis, Patricia K (DOA) ?Th,(� 1a_ 107 From: Matt Ganley <mganley@beringstraits.com> Sent: Thursday, May 4, 2017 2:46 PM To: Bettis, Patricia K (DOA) Subject: RE: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Thank you Patricia. I will send those along. SCANNED MI\ r'ud'', Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road, Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com I www.beringstraits.com WARNING:The information contained in this email (including any attachments) is CONFIDENTIAL and may be PRIVILEGED. If you are not the intended recipient of this email,you may not read, retain, copy,or distribute this email. If you have received this email in error, please advise us by return email and call the sender at 907.632.7197.Thank you. From: Bettis, Patricia K(DOA)<mailto:patricia.bettis@alaska.gov> Sent:Thursday, May 4,2017 3:40 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Good afternoon Matt, Thank you for your letter dated April 12, 2017 concerning the above mentioned Pilgrim Springs wells. By letters dated January 18, 2017, Sundry Applications No. 315-746, No. 315-747, and No. 315-748 were denied as the AOGCC lacked sufficient information to determine that suspension of the PS 12-1, PS 12-2 and PS 12-3 wells was appropriate under 20 AAC 25.110(a)(2). Within 20 days of that date, Bering Straits Native Corporation had the right to file applications for reconsideration. In light of Graphite One Resources Inc. showing an interest in the potential for Pilgrim Hot Springs to provide geothermally generate power to the proposed Graphite Creek Project, please submit new sundry applications for the suspension of the wells under 20 AAC 25.110. A sundry application must be submitted for each well. If you have any questions concerning the matter, please do not hesitate to contact me. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Ste 100 Anchorage, AK 99501 1 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 2 • Bettis, Patricia K (DOA) aJ 2,- /O From: Bettis, Patricia K(DOA) Sent: Thursday, May 4, 2017 2:40 PM To: Matt Ganley Subject: Pilgrim Springs PS 12-1 (PTD 212-077), PS 12-2 (212-109), PS 12-3 (PTD 212-126): Denial of Sundry Applications for Suspension of Wells Good afternoon Matt, Thank you for your letter dated April 12, 2017 concerning the above mentioned Pilgrim Springs wells. By letters dated January 18, 2017, Sundry Applications No.315-746, No.315-747, and No. 315-748 were denied as the AOGCC lacked sufficient information to determine that suspension of the PS 12-1, PS 12-2 and PS 12-3 wells was appropriate under 20 AAC 25.110(a)(2). Within 20 days of that date, Bering Straits Native Corporation had the right to file applications for reconsideration. In light of Graphite One Resources Inc. showing an interest in the potential for Pilgrim Hot Springs to provide geothermally generate power to the proposed Graphite Creek Project, please submit new sundry applications for the suspension of the wells under 20 AAC 25.110. A sundry application must be submitted for each well. If you have any questions concerning the matter, please do not hesitate to contact me. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Ave.,Ste 100 Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 • •-?-i iia.- Io7 • L' 2017 April 12, 2017 Cathy P. Foerster SWEi Alaska Oil and Gas Conservation Commission } •� r';'` ; 333 West Seventh Avenue Anchorage, AK 99501 RE: Request for Suspended status for wells PS-12-1 (212-077), PS-12-2 (212-109),and PS-12-3 212-126). Commissioner Foerster: This letter is in response to your letters of January 18th, 2017 concerning three geothermal temperature gradient wells on the Pilgrim Hot Springs property. The wells are numbered PS-12-1. PS-12-2, and PS-12- 3, and were drilled in 2012 as part of an ongoing geothermal assessment. At the time the wells were drilled, Unaatuq, LLC(the consortium of local Native organizations that own Pilgrim Hot Springs),was beginning to work towards the development of a geothermal electrical system to provide power to Nome, Alaska. Unfortunately,the economics that would have made the project feasible changed with the significant reduction in fuel prices. In December of 2015, we requested, on behalf of Unaatuq, LLC, that these wells be placed in suspended status because of their importance in any further research and development of the geothermal resource at Pilgrim Hot Springs. With the Application for Sundry Approvals,we provided a schematic of each well, as well as an explanation on the reason why the wells should be placed in suspended status. In short, these three wells are important for monitoring the fluid system when any testing or further development occurs on the property. They are necessary to fully utilize PS-13-1,a well which AOGCC approved "exploratory" status at the same time it denied the suspended status of the PS-12 wells. The PS-12 wells represent a significant investment and the plugging and abandoning of these assets would set back any future program that might use the resource for electrical generation or on-site power and heat. As an example of the need for maintaining the wells, Unaatuq, LLC received a grant from USDA/NRCS in 2016 for an agricultural pilot program that is expected to utilize on-site electrical power and heat for the region's food security. In addition to the agricultural project, a mining interest is considering working with Unaatuq to establish a geothermal plant that could produce power for their graphite project some 20 miles from the Hot Springs. I have attached a letter from Graphite One expressing their interest in working on such a program. ., �' L) P i 4 i; P l N\I G 1i,.'71_f4 4t , f:),1 RAI i ,(-; , I istl To summarize,we are requesting that the wells PS-12-1 (212-077), PS-12-2(212-109), and PS-12-3 212- 126), remain in Suspended Status due to the ongoing agricultural program there(and the future need for on-site power and heat),the potential for powering the Graphite One mining program, and the need to keep these wells suspended for monitoring the reservoir when PS-13-1(213-102) is brought into production. I appreciate the work of the Commission and will submit additional materials to support our request if needed. Rega ds, Matt Gan :, VP Media and External Affairs Bering Straits Native Corporation (Managing Partner for Unaatuq, LLC) q'v7-Ox -7117 • March 21,2017 Bering Straits Native Corporation PO Box 1008 4600 DeBarr Road,Suite 200 Nome,Alaska 99762 Anchorage,AK 99508 Dear Gail, Pilgrim Hot Springs Geothermal Project Graphite One Resources is interested in the potential for Pilgrim Hot Springs to provide geothermally generated power to our proposed Graphite Creek Project and wish to explore this possibility with Bering Straits Native Corporation in its role as managing partner of Unaatuq, LLC, the owner of Pilgrim Hot Springs. Graphite One Resources Inc. continues to develop its Graphite One Project with its proposed graphite mine and mineral processing plant to be situated about 20 miles west of Pilgrim Hot Springs. A power demand of six megawatts at full production was estimated in total for these two facilities in the project's recently released Preliminary Economic Assessment ("PEA"), the first engineering report assessing the economic viability of the project's graphite resources. This study assumes the power requirements would be supplied by three,two-megawatt,diesel fired generators. We wish to explore with you the possibility of a geothermal generation facility at Pilgrim Hot Springs supplying all,or some of,this estimated demand. The Graphite One Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade coated spherical graphite ("CSG") primarily for the lithium-ion electric vehicle battery market As set forth in the PEA, potential graphite mineralization mined from the Company's Graphite Creek Property, is expected to be processed into concentrate at a plant adjacent to the mine. The Graphite Creek Property is situated about 37 miles north of Nome. CSG and other value-added graphite products, would likely be manufactured from the concentrate at the Company's proposed graphite product manufacturing facility,the location of which is the subject of further study and analysis. We look forward to the opportunity to work with you on this. An economic alternative to diesel generated power would be a major enhancement to our project. Yours truly, Doug Smith Executive Chairman GRAPHITE ONE RESOURCES INC. 604.240.6016 Do ugS@gra phiteo neresou rces.com 600-777 Hornby Street j Vancouver,British Columbia 0 V62 1S4 • • ♦,OF Tf! • ��y/� A THE STATE Alaska Oil and Gas A7,4 LAS 1SKA Conservation Commission 333 West Seventh Avenue 1. GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 (4' LAS�� • Fax: 907.276.7542 www.aogcc.alaska.gov Matthew Ganley Vice President Unaatuq, LLC SCANNED ink 2 2 U i i. 4600 Debarr Road, Suite 200 Anchorage, AK 99508 Re: Pilgrim Hot Springs Field, Exploratory Pool, PS-12-2 Permit to Drill Number: 212-109 Sundry Number: 315-747 Dear Mr. Ganley: On December 15, 2015 Unaatuq, LLC (Unaatuq) submitted and application for sundry approval to suspend well PS-12-2. Since that time, the Alaska Oil and Gas Conservation Commission (AOGCC) has attempted to obtain additional documentation which would support Unaatuq's request. Unaatuq has not provided the information. Because AOGCC lacks sufficient information to determine that suspension of the PS-12-2 well is appropriate under 20 AAC 25.110(a)(2), the sundry application is denied. Because the PS-12-2 well does not meet the criteria to be placed in suspended status, within 90 days of the date of this denial,Unaatuq must submit for approval a sundry application with a viable plan to plug and abandon the PS-12-2 well. Within 20 days after this decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration. A request for reconsideration is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. Sincerely, Odel Cathy P. oerster , - Chair DATED this/t3 day of January, 2017. RDDMS 1/V Z 6 2017 • • • RECEIVED STATE OF ALASKA DEC � J ZO15 ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 AOGCC 1.Type of Request: Abandon ❑ Plug Perforations❑ Fracture Stimulate ❑ Repair Well ❑ Operations shutdown❑ Suspend ® . Perforate ❑ Other Stimulate ❑ Pull Tubing ❑ Change Approved Program❑ Plug for Redrill ❑ Perforate New Pool ❑ Re-enter Susp Well ❑ Alter Casing ❑ Other: ❑ 2.Operator Name: 4.Current Well Class: 5.P.- it to Drill Number: Unaatuq, LLC ' Exploratory ® ' Development ❑ 2-109 , 3.Address: 4600 Debarr Road,Suite 200 Stratigraphic ❑ Service ❑ • API NL[gber Anchorage,AK 99508 �-00 `�D��+�_� � 7.If perforating: 8. -II Name and Number: What Regulation or Conservation Order governs well spacing in this pool? N/A Will planned perforations require a spacing exception? Yes ❑ No ❑ PS-12-2' (Previously PS-12-3) 9.Property Designation(Lease Number): 10.Field/Pool(s): � �� Private/Unaatuq,LLC(USS 565) /F Pilgrim Hot Springs ') 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD: Effective Depth ND: MPSP(psi. Plugs(MD): Junk(MD): • 1294 ft ' 1294 ft • 1294 ft • 1294 ft //�� Casing Length Size MD `ND Burst Collapse Structural Conductor 10 1n 3/4" 10 ft \10 ft Surface 204 ft 6 5/8" 204 ft \/ 204 ft Intermediate 1004 ft 4 5 " 1004 ft ` 1004 ft Production 1294 ft _ 2.19" 1 '' $071294 ft Liner Perforation Depth MD(ft): Perforation Depth ND(ft): Tubing Size) Tubing Grade: Tubing MD(ft): N/A ' N/A N/A N/A Packers and SSSV Type: 1 Ir Packers and SSSV MD(ft)and ND(ft): 12.Attachments: Proposal Summary ❑ Wellbore schemata A 13.Well Class after proposed work: ArD Detailed Operations Program ❑ BOP Sketch ❑ Exploratory [7 s Stratigraphic ❑ Development❑ Service n 14.Estimated Date for 15.Well Status after proposed work: Commencing Operations: OIL ❑ WINJ ❑ WDSPL ❑ Suspended ®e 16.Verbal Approval: Date: GAS ❑ WAG ❑ GSTOR ❑ SPLUG ❑ Commission Representative: GINJ ❑ Op Shutdown ❑ Abandoned ❑ 17.I hereby certify that the foregoing is true and the procer re approved herein will not be deviated from without prior written appy• al. Contact Email Printed Name Matthewl Title VP Signature "hone Date a (9I )344-7212 COMMISSION USE ONLY Conditions of approval: Notify Commission sot :t a representative may witness Sundry Number: 15 -1HI Plug Integrity ❑ BOP Test // Mechanical Integrity Test ❑ Location Clearance ❑ Other: Post Initial Injection MIT Req'd? Y s ❑ No ❑ Spacing Exception Required? Yes ❑ No 2 Subsequent Form Required: APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: Submit Form and Form 10-403 Revised 11/2015 Approved application is valid for 12 months from the date of approval. Attachments in Duplicate ORIGINAL RBDIVIS , -'JA 12 6 2017 • • RECEIVED • Sol' BERING DEC 15 2015 Itg* STRNative oAITS AOGCC December 11, 2015 Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Ms. Bettis: I am writing on behalf of Unaatuq, LLC the landowner of Pilgrim Hot Springs, in response to your communications of November 17 and November 23, 2015. BSNC is the managing partner of Unaatuq, LLC. According to your emails, AOGCC requires that Unaatuq. LLC submit: 1) An Application for Sundry Approvals (Form 10-403)for each well (P512-1, P512-2, PS12-3, PS13-1); 2) A well schematic diagram for each well; 3) A summary sheet noting the justification for maintaining the current status of each well. 4) The Report dated October 16, 2014, submitted by the Alaska Center for Energy and Power and titled, Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utilization. I have prepared a separate package of material for each well/permit, containing this cover letter and the information noted above in 1-3. Enclosed are the required forms and attendant paperwork. If there are any deficiencies or omissions in the enclosed paperwork, please notify me at your convenience. //74,07,/e Matt Gan e) VP Resources and External Affairs BSNC For Unaatuq, LLC. 4600 DeBarr Road, Suite 200 • Anchorage,Alaska 99508-3126 • 907.563.3788 • Fax 907.563 2742 • www.beringstraits.com • • High-pressure ball valve ► 6 5/8-in OD conductor casing cemented to 200 ft below land surface i 4.5-in OD casing cemented to 1000 ft below land surface 2.19-in OD casing cemented from land surface to 160 ft r below land surface. Grouted from 160 to 1294 ft below land surface. Bottom cap {] Schematic: PS 12-2: (Please refer to"Application for Application for Sundry Approvals,"Section 11 for Well Condition Summary). • • Ln a, 0 c •i m C) CO a) I- a., N _C C = 0 3 +' Z 0 -I O : 0. 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Cr Q O C d L N • N N N M �' D a) — .--I .--I c-1 .-i .0 0 0 -o C C 3 -o o c E d d d d d a) C `° v 0 0 • -0 Cn N V ++ l.) la i Nal)z v O 7 O O a J a 0- Z h 0) LO N H a) Z . , .- Cr 0 - a) n ON O cG CO Y Y L (N N N M a) r0 co N co N 0 cu N , (n L.O n- a) v v d N N N N .-I 4-_,,.i OD r•-• • • Bettis, Patricia K (DOA) P/,i\ Z J 2.—J O 5 From: Bettis, Patricia K(DOA) Sent: Monday, May 02, 2016 1:48 PM To: 'Matt Ganley' Subject: FW: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) Matt, In regards to our email exchange below,the AOGCC has not received any information on Pilgrim Geothermal LLC. I am still holding the sundry applications for suspension of the PS 12-1, PS 12-2, PS 12-3 and PS 13-1. Under regulation 20 AAC 25.110, an operator may apply to the AOGCC to approve the suspension of a well. The operator must state the reasons why each well should be suspended, and not completed or abandoned. This includes demonstrating that each well has a practical future utility. If a geothermal electric generation project is not in the works,then Unaatuq, LLC needs to provide justification on why the wells should be suspended, and not completed or abandoned. Thank you, Patricia Original Message From: Matt Ganley [mailto:mganley@beringstraits.com] Sent: Monday,January 04, 2016 3:39 PM To: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov> Subject: RE: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) Thank you Patricia. I have contacted the company and requested that they send to appropriate information to you. Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road,Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com ( www.beringstraits.com From: Bettis, Patricia K(DOA)<mailto:patricia.bettis@alaska.gov> Sent: Monday,January 4, 2016 4:26 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos.212-077,212-109,212-126 and 213-102) Good afternoon Matt, In reference to the statement in the applications that Unaatuq has a letter of Intent and MOU with Pilgrim Geothermal LLC for future development of a geothermal electric generation project, a search of the Corporations Database, Department of Commerce,Community and Economic Development, shows that Pilgrim Geothermal LLC does not hold a 1 • , license to conduct business in the State of Alaska.Would you please provide more information on Pilgrim Geothermal LLC. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 2 • • Bettis, Patricia K (DOA) PT� a./z _ From: Matt Ganley <mganley@beringstraits.com> Sent: Tuesday, May 03, 2016 2:26 PM To: Bettis, Patricia K(DOA) Subject: RE: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) Patricia, Thank you for the notification. I was assured by Mr.Trott that he would follow up with you, so I'll contact him, again. I would also like to update you (and I will submit an updated suspension request)to tell you that we have received an NRCS (Dept. Of Agriculture)for a pilot program to reintroduce agricultural production to the property and continue to work with ACEP on deploying on site geothermally produced electricity. We are also improving the bathing pool this summer for public use. All of these activities will need the use of the remaining wells. I will explain in more detail within the amended paperwork. Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road, Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com www.beringstraits.com From: Bettis, Patricia K (DOA)<mailto:patricia.bettis@alaska.gov> Sent: Monday, May 2, 2016 2:48 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: FW: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) Matt, In regards to our email exchange below,the AOGCC has not received any information on Pilgrim Geothermal LLC. I am still holding the sundry applications for suspension of the PS 12-1, PS 12-2, PS 12-3 and PS 13-1. Under regulation 20 AAC 25.110, an operator may apply to the AOGCC to approve the suspension of a well. The operator must state the reasons why each well should be suspended, and not completed or abandoned. This includes demonstrating that each well has a practical future utility. If a geothermal electric generation project is not in the works, then Unaatuq, LLC needs to provide justification on why the wells should be suspended, and not completed or abandoned. Thank you, Patricia Original Message From: Matt Ganley [mailto:mganley@beringstraits.com] Sent: Monday,January 04, 2016 3:39 PM To: Bettis, Patricia K (DOA)<patricia.bettis@alaska.gov> Subject: RE: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) 1 A • S Thank you Patricia. I have contacted the company and requested that they send to appropriate information to you. Matt L. Ganley V.P. Media and External Affairs Bering Straits Native Corporation 4600 DeBarr Road, Suite 200 I Anchorage,AK 99508 Phone 907.563.3788 Direct 907. 344.7212 I Mobile 907.632.7197 mganley@beringstraits.com J www.beringstraits.com<http://www.beringstraits.com> From: Bettis, Patricia K(DOA)<mailto:patricia.bettis@alaska.gov> Sent: Monday,January 4, 2016 4:26 PM To: Matt Ganley<mailto:mganley@beringstraits.com> Subject: Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1(PTD Nos. 212-077, 212-109, 212-126 and 213-102) Good afternoon Matt, In reference to the statement in the applications that Unaatuq has a letter of Intent and MOU with Pilgrim Geothermal LLC for future development of a geothermal electric generation project, a search of the Corporations Database, Department of Commerce,Community and Economic Development, shows that Pilgrim Geothermal LLC does not hold a license to conduct business in the State of Alaska. Would you please provide more information on Pilgrim Geothermal LLC. Thank you, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 2 • • • .. IVSD (2/ -lob EC 15 2015 Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utiliza ibGCC October 17, 2014 By the Alaska Center for Energy and Power Since 2010, the Alaska Center for Energy and Power has been leading geothermal exploration efforts at Pilgrim Hot Springs. The property is owned by Unaatuq LLC., a partnership of seven organizations based on the Seward Peninsula. In 2012 and 2013 four wells were drilled on the property which fall under the jurisdiction of the Alaska Oil and Gas Conservation Commission. The wells drilled during this period are best left open and operational as a means to monitor the geothermal aquifer, and in the case of PS13-1 provide geothermal fluid for onsite use. Three of these wells, called PS12-1, PS12-2, and PS 12-3 were drilled as temperature gradient holes to High-pressure ball valve [- High-pressure ball valve 6 5/8-in OD conductor casing 6 5/8-in OD conductor casing I cemented to 100 ft below cemented to 200 ft below land surface -+ land surface 4.5-in OD casing cemented to 1000 ft below land surface sl 4.5-in OD casing cemented to 1000 ft below land surface 2.19-in OD casing cemented from land surface to 160 ft below land surface.Grouted from 160 to 1294 ft below land surface. Bottom cap Figure 1.PS 12-1(left)and PS 12-2(right) depths ranging from 1000 feet to 1294 feet. Diagrams of these wells are shown in figures 1-2. These wells are constructed with sealed casing which is plugged at the bottom. The casing is not perforated and the wells are not open to the formation. They do not have ability to flow artesian as other perforated wells at the site do. Once the wells were completed, the casing was filled with water and they serve as temperature gradient monitoring wells. Temperature logs, like the one shown in figure 3 are created using the temperature profiles measured in the wells. These wells are very useful for monitoring subtle long term changes in the geothermal field. i • • Currently,there are plans to develop Pilgrim Hot Springs to generate electricity and export this power to Nome. A private developer, under the name Pilgrim High-pressure ball valve --I. Geothermal LLC., has signed a power purchase agreement with Nome Joint Utility Systems to supply up to two MW of electrical power to the utility. This would 6 5/8-in OD conductor casing cemented to 144ftbelow require the extraction and reinjection of large amounts of land surface Fr ! I geothermal fluid at Pilgrim Hot Springs. In order to maintain the long term health of the geothermal field, careful monitoring of the aquifer is necessary. The temperature gradient wells that were drilled in 2012 are ideally situated to monitor the temperatures of both the shallow and the deep aquifers at Pilgrim Hot Springs. 2.19-in OD casing cemented from land surface to 993 ft. Because these wells are sealed from the aquifer, the risks associated with leaving these wells open are extremely limited. Rubber cement plug in bottom of casing In addition to this larger geothermal power generation 5518-in hole I facility being explored, the property owners of Pilgrim Hot from drilled to11 Grout-filled ffrom �–► Springs, are very interested in developing the site for 993 to 1183 ft. Figure 2.PS 12-3 small scale tourism use. Some of the uses for the geothermal waters that have been discussed include a _ small geothermal power plant for Temperature Profile of PS12-2 onsite electrical power generation, a small geothermal on 6 September 2014 district heating loop to provide space heating and snow melting, Temp(°C) and of course hot soaking pools. 0 20 40 60 80 100 Just as in the large scale 0 — — _ geothermal power plant scenario 200 described above, using the 400 LL geothermal resource for onsite -- 600 800 — — ---- production will require careful monitoring of the geothermal 1000 — — --- resource. The temperature 1200 1400 gradient wells that were drilled L _____________ _ �__ I in 2012 provide an excellent tool Figure 3.The temperature profile of PS 12-2 shows gives the static state to do this with. temperature of the geothermal aquifer • w PS13-1 was drilled in 2013. It was originally drilled to bedrock at 1036 feet, but when temperatures at this depth were cooler than had been hoped for, the well was completed in the shallow thermal aquifer. This well, shown in figure 4 was completed with 14" casing and well screen. The well has an artesian flow rate of approximately 70 gpm at 175° F.The closed in pressure at the wellhead is approximately 3.5 PSI. In September of 2013 the well was flow tested at 300 gpm, and had productivity measured at 27.5 gpm/psi, indicating a good productive well. This well has excellent potential to produce geothermal fluid for onsite district heating and power production purposes which the landowners are in the process of evaluating. PS-13-1 Completion Well Diagram 14 casing to surface Giuurni evel 11 --24'Conductor Casing _., M1 i __18"Surface Casing Gravel Backfill-- _ yClass C Neat Cement ,,Bentonite Crumbles __:T — — — Packer at So' 18" 140' 188' 111 I { j I 3S0'WellScreen 5'tail Pipe wiPlate � I '� _ _.._ - ------ - __ -- 238'MD Welded to Bottom 243'MD 2'Cement Plug Back Filled with Sand 805'MD 231'of 2"Galvani7ed Pipe 1036'MD Figure 4.PS 13-1 well schematic • • L 0 I c-I! `4 6._ I �( 0 N a4 r 1, 4 `t 1 z \/ • • \tk% iir CD 4 It 0 ., 0 k tor niffirr".'" '131/11111111.111 CD C O. G) 0• O = 0 C 3 E > o v C o o O Cho CV t() L 0 r > Co d oC� 0 p To .0 0 � w N 0) 0 V $ m O N w C Ccoca et m ' ' `t0)) od N 0 04 � � 't0C4 • VL C d 3 V N N d Q. d N 4 V .Q 0 C !C co z c cc 1f) C ' cD V ! C) E O E C O O N •C -0 IC (13 p • • Bettis, Patricia K (DOA) -PM 12. —/07 From: Bettis, Patricia K (DOA) Sent: Tuesday, November 17, 2015 12:05 PM To: 'Matt Ganley' Subject: Pilgrim Springs Geothermal Wells: PS 12-1 (PTD 212-077), PS 1 -2 (PTD 212-109), PS 12-3 (PTD 212-126), and PS 13-1 (PTD 213-102) Good afternoon Matt, As per my email dated January 29, 2015, Unaatuq, LLC cannot leave PS 12-1, PS 12-2, PS 12-3 and PS 13-1 in the current status quo. Under regulation 20 AAC 25.110, an operator may apply to the AOGCC to approve the suspension of a well. The operator must state the reasons why each well should be suspended, and not completed or abandoned. This includes demonstrating that each well has a practical future utility. A separate application is required for each individual well. An Application for Sundry Approvals form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well can be found at http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approvals and a proposed well schematic diagram shall also be submitted with the application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells in conformance with State Regulations. Please submit to the AOGCC, within fifteen (15) business days from the date of this email, the required sundry applications for suspension or abandonment of PS 12-1, PS 12-2, PS 12-3 and PS 13-1. If applications for the suspension or abandonment of the wells are not received in that time frame, the AOGCC may issue Notices of Violation under 20 AAC.535 for violation or failure to comply with a provision of AS 31.05 and Title 20, Chapter 25 of the Alaska Administration Code. If you have questions, please do not hesitate to call me. Best Regards, Patricia SCAIIKED AP,? 0 8 2016 Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If 1 • • you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@ alaska.gov. From: Bettis, Patricia K(DOA) Sent:Thursday,January 29, 2015 2:10 PM To: matt@beringstraits.com Cc: Colombie,Jody J (DOA)<jody.colombie@alaska.gov> Subject: Pilgrim Springs Geothermal Wells(Docket No: OTH-14-019) Matt, This email is to summarize our phone conversation on January 28, 2015, regarding the Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1 geothermal wells. If AOGCC approves Unaatuq, LLC's request to be designated operator, Unaatuq, LLC will bear full responsibility for assuring those wells are in compliance with all of AOGCC's statutes, regulations and orders. Unaatuq, LLC is responsible for knowledge of those statutes, regulations and orders. Regarding the status of Unaatuq, LLC's request to approve the change in operator,the submitted documentation is incomplete. Specifically Unaatuq, LLC needs to submit a signed copy of the September 12, 2014 Unaatuq, LLC Management Board Meeting, signed by a Management Board Member. Unaatuq, LLC also understands that the wells shall not be left in the current status quo. If Unaatuq, LLC does not demonstrate to AOGCC that the wells should be suspended, and not completed and put into production or abandoned, then the AOGCC will likely order the wells be property plugged and abandoned. See, 20 AAC 25.105 and 20 AAC 25.112. Responsibility for plugging and abandoning the wells, as well as all costs associated with the abandonment procedure, rests with Unaatuq, LLC. Applications for Sundry Approvals to suspend the wells must be submitted to the AOGCC within 15 business days of the date that AOGCC approves the change in operator. A separate application is required for each individual well. A Sundry application form (Form 10-403)for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approval and a proposed well schematic diagram shall also be submitted with the sundry application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells to the satisfaction of the AOGCC. If you have questions, please do not hesitate to call me. Best Regards, Patricia Patricia Bettis 2 • • Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 3 • • Bettis, Patricia K (DOA) fib a(a - J D q From: Matt Ganley <mganley@beringstraits.com> Sent: Tuesday, November 17, 2015 2:08 PM To: Bettis, Patricia K (DOA) Subject: Re: Pilgrim Springs Geothermal Wells: PS 12-1 (PTD 212-077), PS 12-2(PTD 212-109),. PS 12-3 (PTD 212-126), and PS 13-1 (PTD 213-102) Thank you. We will get the completed paperwork to you. Matt L. Ganley V.P. Media and External Affairs SCANNED APR 0 8 Zp1S Bering Straits Native Corporation 4600 DeBarr Road, Suite 200 I Anchorage, AK 99508<x-apple-data-detectors://7/1> Phone 907.563.3788<te1:907.563.3788> Direct 907. 344.7212<te1:907.%20344.7212> I Mobile 907.632.7197<te1:907.632.7197> mganley@beringstraits.com<mailto:mganley@beringstraits.com> www.beringstraits.com<http://www.beringstraits.comh WARNING:The information contained in this email (including any attachments) is CONFIDENTIAL and may be PRIVILEGED. If you are not the intended recipient of this email,you may not read, retain, copy, or distribute this email. If you have received this email in error, please advise us by return email and call the sender at 907.632.7197<te1:907.632.7197>.Thank you. On Nov 17, 2015, at 1:05 PM, Bettis, Patricia K (DOA)<patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov» wrote: Good afternoon Matt, As per my email dated January 29, 2015, Unaatuq, LLC cannot leave PS 12-1, PS 12-2, PS 12-3 and PS 13-1 in the current status quo. Under regulation 20 AAC 25.110, an operator may apply to the AOGCC to approve the suspension of a well. The operator must state the reasons why each well should be suspended, and not completed or abandoned. This includes demonstrating that each well has a practical future utility. A separate application is required for each individual well. An Application for Sundry Approvals form (Form 10-403)for the submittal of a plan of abandonment or a plan of suspension for a well can be found at http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approvals and a proposed well schematic diagram shall also be submitted with the application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells in conformance with State Regulations. Please submit to the AOGCC, within fifteen (15) business days from the date of this email, the required sundry applications for suspension or abandonment of PS 12-1, PS 12-2, PS 12-3 and PS 13-1. If applications for the suspension or abandonment of the wells are not received in that time frame, the AOGCC may issue Notices of Violation under 20 1 • • AAC.535 for violation or failure to comply with a provision of AS 31.05 and Title 20, Chapter 25 of the Alaska Administration Code. If you have questions, please do not hesitate to call me. Best Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at (907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. From: Bettis, Patricia K(DOA) Sent: Thursday,January 29, 2015 2:10 PM To: matt@beringstraits.com<mailto:matt@beringstraits.com> Cc: Colombie,Jody J (DOA)<jody.colombie@alaska.gov<mailto:jody.colombie@alaska.gov» Subject: Pilgrim Springs Geothermal Wells (Docket No: OTH-14-019) Matt, This email is to summarize our phone conversation on January 28, 2015, regarding the Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1 geothermal wells. If AOGCC approves Unaatuq, LLC's request to be designated operator, Unaatuq, LLC will bear full responsibility for assuring those wells are in compliance with all of AOGCC's statutes, regulations and orders. Unaatuq, LLC is responsible for knowledge of those statutes, regulations and orders. Regarding the status of Unaatuq, LLC's request to approve the change in operator, the submitted documentation is incomplete. Specifically Unaatuq, LLC needs to submit a signed copy of the September 12, 2014 Unaatuq, LLC Management Board Meeting, signed by a Management Board Member. Unaatuq, LLC also understands that the wells shall not be left in the current status quo. If Unaatuq, LLC does not demonstrate to AOGCC that the wells should be suspended, and not completed and put into production or abandoned, then the AOGCC will likely order the wells be property plugged and abandoned. See,20 AAC 25.105 and 20 AAC 25.112. 2 • • Responsibility for plugging and abandoning the wells, as well as all costs associated with the abandonment procedure, rests with Unaatuq, LLC. Applications for Sundry Approvals to suspend the wells must be submitted to the AOGCC within 15 business days of the date that AOGCC approves the change in operator. A separate application is required for each individual well. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approval and a proposed well schematic diagram shall also be submitted with the sundry application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells to the satisfaction of the AOGCC. If you have questions, please do not hesitate to call me. Best Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793- 1238 or patricia.bettis@alaska.gov<mailto:patricia.bettis@alaska.gov>. 3 Bettis, Patricia K (DOA) ?Th ala - /4� From: Bettis, Patricia K (DOA) Sent: Monday, July 20, 2015 2:44 PM To: 'Matt Ganley' Subject: Pilgrim Springs PS 12-1 (PTD 212-077) PS 12-2 (PTD 212-109), PS 12-3 (PTD 212-126), and PS 13-1 (PTD 213-102) Good afternoon Matt, Unaatuq, LLC needs to submit Sundry Applications for the suspension of the PS 12-1, PS 12-2, PS 12-3 and PS 13-1 geothermal wells. A sundry application (Form 10-403) needs to be submitted for each well. Form 10-403 can be found on the AOGCC website at the following address: http://doa.alaska.gov/ogc/forms/forms.html. Under 20 AAC 25.110. Suspended wells, Unaatuq, LLC must state the reasons the wells should be suspended, and not completed or abandoned, and must demonstrate to the commission's satisfaction that the wells have future utility. Other requirements under 20 AAC 25.110 must also be met. The complete regulation may be found on the AOGCC website at the following address: http://www.legis.state.ak.us/basis/aac.asp#20.25.110. If you have any questions, please do not hesitate to call or email me. Thank you, Patricia Patricia Bettis SCANNED JUL 2 12015 Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907) 793-1238 or patricia.bettis@alaska.gov. 1 aia is .7 Ill Nlo,T 4, °'t A-S P - Ad Ej,_MAR, i - /g1a5/ly err?.1 sykA/W4d ii t.s.:svk.kk\e\ rSSTRAITS Notove Corporotton da,A&Atuf‘i £ lots, P1 November 25th,2014 Cathy P.Foerster,Commissioner State of Alaska Alaska Oil&Gas Conservation Commission 333 W.7th Ave. Anchorage,AK 99501-3539 RE: Pilgrim Springs Geothermal Wells SCANNED AUG 0 22Q17 Docket No: OTH-14-019 Commissioner Foerster: This letter is in response to your letter dated September 12, 2014 concerning the geothermal wells located at Pilgrim Hot Springs and identified as PS 12-1, PS 12-2, PS 12-3,and PS 13-1,which had been drilled by UAF's Alaska Center for Energy and Power(ACEP). Unaatuq,LLC and ACEP have worked diligently to define the geothermal resource at Pilgrim for the past 4 years,however,the current agreement between the parties ends on December 31,2014. It is anticipated that ACEP and Unaatuq will pursue joint projects that will further our understanding of the resource and bring its benefits to the residents of the region. Bering Straits Native Corporation serves as the managing member for Unaatuq,LLC,a consortium of seven organizations in the Bering Strait region who now own the property known as Pilgrim Hot Springs (Attachment A:U.S.Survey 565). Unaatuq, LLC and ACEP have been involved in a multi-year exploration and characterization program at the springs,with the ultimate goal of on-site development of the geothermal resource (greenhouses,district heating,electricity),and perhaps generating electricity for transmission to Nome. Your recent letter states that the wells at the hot springs must be "either plugged and abandoned in compliance with 20 MC 25.105 and 20 MC 25.112 or suspended under 20 MC 25.110." Unaatuq,LLC respectfully requests that we,as the landowners having a continued interest in developing the resources only available through the currently existing wells,be allowed to assume the responsibility as Operator. As Operator,Unaatuq,LLC would prefer to refrain from plugging,abandoning,or suspending the wells because further development of the geothermal resource is only possible if the wells remain functioning and accessible. For example,we are working with a company that intends to pursue electrical generation at Pilgrim,and intends to utilize the existing wells(12-1 to 12-3 and 13-1)for pump tests and reservoir monitoring. Closure of these wells would effectively set back any development for on-site geothermal use and electrical production for transmission to Nome. Attached you will find a statement outlining the Utility of Maintaining the Wells,which also contains a schematic for each well as requested in your letter(Attachment B). Through this correspondence we are requesting that the Operator of Record,currently listed as UAF/ACEP be changed to Unaatuq, LLC. We are submitting a completed Designation of Operator 46(8)r)c£k,rrRo.id.S1eili200 • Anclo . Alas 995O3126 • 907_S63.3788 • T"..�x907' -,3.2762 • www.bc1nig<<trai'scunt • • . BERING 44 STNativRAITS orporation form(20 AAC 25.020) (Attachment C). On September 12, 2014,the Board of Directors for Unaatuq, LLC met and voted to assume the responsible for the wells as the operator,as well as be the agency to post the necessary bond with the State of Alaska for maintain the wells in their current,accessible status(Attachment D: Meeting Minutes,Excerpt). Please forward the required information,requirements and costs for submission of a bond to the State of Alaska to cover the wells,PS 12-1,PS 12-2,PS 12-3,and PS 13-1 to Matt Ganley,Bering Straits Native Corporation,4600 DeBarr Road,Suite 200,Anchorage,Alaska 99508. Sincerely, Matt Ganley Bering Straits Native Corporation,Managing Member Unaatuq,LLC (907)344-7212 Gwen Holdman University of Alaska Fairbanks 41 Alaska Cen'•r for . • : .nd Power,Director 411 Kit Duke University of Alaska Facilities and Land Management,Associate Vice President Enclosures: U.S.Survey 565 Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utilization Designation of Operator Form 10-411 September 12,2014 Unaatuq,LLC Meeting Minutes Excerpt • • ATTACHMENT A: U.S. Survey 565-Pilgrim Hot Springs • • • • /ligigiX lit _. 14191!Iiiii g!Illialqgg 1 1 5 I a Plii , . /g1 . • den • � 1 ` -.ti ' I jS' '�y •Vt-'�''j,,.4..Ni'-yF� 1 4, ..* .1.0?;"-0.-KI‘c'•' ...• .. .IVIVity5Wq,ikt.A.:......"k:A.Z.-44.45.- .,„ II • l'i • 1 ••. ..• it.18,...m.ms ., . )ti -,. . t, _ 'k"„fe f 1 • • . ' / � ` ;,.. :',• :,,.:,..'.: • � ter, .. *), k ' :` :. =t' • • • �S.• �Ig;..�;tir� ',+.�k� •rti'.:��;,• °- ....- V. •t. S r •.naus++,V�rax�,ce,� Y3 .e.' 'moi?. ':=:K,�• 4aa.� r % 7.r+,rrrrcas r5 .fr^ (�V.i'Vl,,f. • ..k.-%, aa•r!4'd ' R}f' •h t Jr ri. rl tf • \ Illilitt il 0 114 filli l, ' t, 'itt1.t li tintiirtt ¢ itillig i ea VI A , 111 a f t. li ' , ili t t ,, is1.1 1 .r s • €- +: • 4 • -; ii EX LIC_UNIVERSITN'_PHS_06I812 10 • • ATTACHMENT B: Utility of Maintaining Recent Wells At Pilgrim Hot Springs . • Utility of Maintaining Recent Wells at Pilgrim Hot Springs for Monitoring and On-Site Utilization October 17,2014 Since 2010, the Alaska Center for Energy and Power has been leading geothermal exploration efforts at Pilgrim Hot Springs. The property is owned by Unaatuq LLC., a partnership of seven organizations based on the Seward Peninsula. In 2012 and 2013 four wells were drilled on the propertywhich fall under the jurisdiction of the Alaska Oil and Gas Conservation Commission. The wells drilled during this period are best left open and operational as a means to monitor the geothermal aquifer, and in the case of PS13-1 provide geothermal fluid for onsite use. Three of these wells, called PS12-1, PS12-2, and PS 12-3 were drilled as temperature gradient holes to High-pressure ball valve -+ High-pressure ball valve 6 5184n OD conductor casing ° 6 5164n OD conductor casing :niternted to 100 ft below ; cemented to 200 ft below surface land surface 4.5-in OD casing cemented to 1000 ft below land surface 4.5-in OD casing cemented to 1000 ft below land surface 2.194n OD casing cemented from land surface to 160 ft below land surface.Grouted from 160 to 1294 ft below land surface. Bottom cap 8111111 Figure 1.PS 12-1(left)and PS 12-2(right) depths ranging from 1000 feet to 1294 feet. Diagrams of these wells are shown in figures 1-2. These wells are constructed with sealed casing which is plugged at the bottom. The casing is not perforated and the wells are not open to the formation. They do not have ability to flow artesian as other perforated wells at the site do. Once the wells were completed, the casing was filled with water and they serve as temperature gradient monitoring wells. Temperature logs, like the one shown in figure 3 are created using the temperature profiles measured in the wells. These wells are very useful for monitoring subtle long term changes in the geothermal field. • • Currently, there are plans to develop Pilgrim Hot Springs to generate electricity and export this power to Nome. A private developer, under the name Pilgrim High-pressure ball valve -i Geothermal LLC., has signed a power purchase agreement with Nome Joint Utility Systems to supply up to two MW of electrical power to the utility. This would 6 5/8-in OD conductor casing cemented to 14411 below require the extraction and reinjection of large amounts of land surface geothermal fluid at Pilgrim Hot Springs. In order to maintain the long term health of the geothermal field, careful monitoring of the aquifer is necessary. The temperature gradient wells that were drilled in 2012 are ideally situated to monitor the temperatures of both the shallow and the deep aquifers at Pilgrim Hot Springs. 2.19•in OD casing cemented from land surface to 993 ft. Because these wells are sealed from the aquifer, the risks associated with leaving these wells open are extremely limited. Rubber cement plug in bottom of casing In addition to this larger geothermal power generation 55/8-in hole facility being explored, the property owners of Pilgrim Hot drilled to1183 Grout-filled fromm + Springs, are very interested in developing the site for 993 to 1183 ft. Figure 2.PS 12-3 small scale tourism use. Some of the uses for the geothermal waters that have been discussed include a small geothermal power plant for Temperature Profile of P512-2 onsite electrical power generation, a small geothermal on 6 September 2014 district heating loop to provide space heating and snow melting, Temp('C) and of course hot soaking pools. 0 20 40 60 80 100 Just as in the large scale 0 geothermal power plant scenario 200 described above, using the 400 geothermal resource for onsite L600 production will require careful 0 800 monitoring of the geothermal 1000 resource. The temperature 1200 gradient wells that were drilled 1400 in 2012 provide an excellent tool Figure 3.The temperature profile of PS 12-2 shows gives the static state to do this with. temperature of the geothermal aquifer • • PS13-1 was drilled in 2013. It was originally drilled to bedrock at 1036 feet, but when temperatures at this depth were cooler than had been hoped for, the well was completed in the shallow thermal aquifer. This well, shown in figure 4 was completed with 14" casing and well screen. The well has an artesian flow rate of approximately 70 gpm at 175° F.The closed in pressure at the wellhead is approximately 3.5 PSI. In September of 2013 the well was flow tested at 300 gpm, and had productivity measured at 27.5 gpm/psi, indicating a good productive well. This well has excellent potential to produce geothermal fluid for onsite district heating and power production purposes which the landowners are in the process of evaluating. Ps-13-1 Completion Well Diagram casing to surface Ground Level -- 24"Conductor Casing 21'-- ' 18"Surface Casing Gravel Backfill Class C Neat Cement Shale Packer 1Bentonite Crumbles —— Packer at 50' I 18" 140' IIIIIIIIIIIIII 188' IIIIIIIIIIIII Mil I I I ; I I I I I 50'Well Screen 5'Tail Pipe wlPlate I I I I I I WIWI 238'MD Welded to Bottom -- - 14" 243'MD 2'Cement Plug Back Filled with Sand 9 7/8" wcaA.y 805'MD 231'of 2"Galva nized Pipe 1036'MD Figure 4.PS 13-1 well schematic • ATTACHMENT C: Designation of Operator 20 AAC 25.020 • • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 AAC 25.020 1.Name and Address of Current Owner of Record: University of Alaska Fairbanks PO Box 755280 Fairbanks,Alaska 99775-5282 2.Notice is hereby given of a designation of operatorship for the oil and gas property described below: Legal description of property: U.S.Survey 565 Agregating approximatly 320 acres Refer to the attached map for representation of Lands described above. Property Plat Attached: n 3. Name and Address of Designated Operator. Unaatuq,LLC c/o Bering Straits Native Corporation P.O.Box 1008 Nome,Alaska 99762 4. Effective Date of Designation: 5. Acceptance of operatorship for the above descn'bed property with all attendant responsibilities and obligations is hereby acknowledged /attach Power of Attorney or other evidence of authority of person signing): Signature Date 2/t7/9 Printed Name /"� Ut/V/vr�F Title , r.ASN&1r (//✓//l47V4 J 4 C, 6. The Owner hereby certifies that the foregoing i true and correct(attach Power of Attorney or other evidence of authority of person signing): Signature CI ( -' Date 12/3/2014 r�, ..-�-_.__ Printed Name Gwen Holdmann Title Director,Alaska Center for Energy and Power 7. Approved: Commissioner Date Approved: Commissioner Date Approved: Commissioner Date (Requires approval by two Commissioners) Form 10-411 Rev.7/2009 Submit in duplicate 1 • • ATTACHMENT D: Unaatuq, LLC Meeting Minutes Excerpt September 12, 2014 Unaatuq, LLC • • Management Board Meeting September 12, 2014 Call to Order Roy Ashenfelter called the Unaatuq, LLC Management Board meeting to order at 12:30 p.m. on September 12, 2014 in the BSNC Boardroom at Nome, Alaska. Roll Call Organization Representative Others present BSNC Clara Langton Robert Evans, Jerald Brown, Kevin Bahnke, Matt Ganley* Kawerak Kirsten Timbers, who took minutes MINC Thomas Denise Topkok, Daniel O. Komok, John Topkok, Ablowaluk Dora Hughes NSEDC Janis Ivanoff* Kyan Olanna* SNC Chuck Fagerstrom Andrew Miller Jr. TNC Isaac Okleasik Jr. William Topsekok WMNC Roy Ashenfelter Unaatuq Cheryl McKay* ACEP Gwen Holdmann *via teleconference Waive Notice of Meeting Roy Ashenfelter asked for a motion to waive the notice of the meeting. Clara Langton moved and William Topsekok seconded the motion to waive the notice of the meeting. Question called. Motion passed by voice vote. Wells Roy Ashenfelter asked for a motion to transfer the liability of the wells from ACEP to Unaatuq. Clara Langton moved and Isaac Okleasik second the motion to approve of the transfer of liability for Unaatuq wells PS 12-1, 2, 3 and PS 13-1, 2, 3 and transfer of the bond from ACEP to Unaatuq as required. Question called. Motion passed by voice vote. Matt Ganley requested that each organization send him a letter informing Unaatuq who their representative and alternates 0 • ,. oF c ��\ l%%gig THE STA1 E J. 12 C.,: � i ' r,i. .,_K e 6 moi:' -17--- 333 West Seventh Avenin -; GOVERNOR SEAN PA,R1\ELL KAnchorage, Alaska 9950-3572 ,rva ti cnh 967.279 1A3 �� r a; '07.275 7,/2 September 12, 2014 CERTIFIED MAIL- RETURN RECEIPT REQUESTED 7012 3050 0001 4812 6808 (Unaatuq) 7012 3050 0001 4812 6815 (DCED) 7012 3050 0001 4812 6822 (UAF) Matt Ganley, Resources and External Affairs Unaatuq, LLC c/o Bering Straits Native Corporation P.O. Box 1008 Nome,AK 99762 Ms. Susan K. Bell, Commissioner Alaska Department of Commerce, Community,and Economic Development P.O. Box 110800 Juneau,AK 99811-0800 Gwen Holdmann, Director UAF Alaska Center for Energy&Power P.O. Box 755910 Fairbanks,AK 99775-5910 Re: Pilgrim Springs Geothermal Wells Docket No: OTH-14-019 Dear Mr. Ganley, Ms. Bell and Ms. Holdmann: As operators or landowner of record, you are advised that the ten geothermal wells drilled in the area of Pilgrim Springs, Alaska (see attached list) must either be plugged and abandoned in compliance with 20 AAC 25.105 and 20 AAC 25.112 or suspended under 20 AAC 25.110. Alaska Oil and Gas Conservation AOGCC regulations can be found at the following internet address: http://doa.alaska.gov/ogc/Regulations/Reglndex.html. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Please note that each application for Sundry Approval must include a well schematic diagram showing the well's current condition and a well schematic diagram showing proposed downhole well design changes to comply with applicable regulations for plug and abandonment or suspension. 9 i Pilgrim Springs Geothermal Well" September 12,2014 Page 2 of 2 If the AOGCC does not receive an acceptable plan and schedule for all ten wells within ninety (90) days of receipt of this letter, the AOGCC will notice a public hearing to determine whether remedial action is necessary with regard to the wells and which entity will bear responsibility for compliance. The applicable University of Alaska, Fairbanks Alaska Center for Energy& Power's (UAF) lease will be expiring soon relative to the PS# 12-1, PS 12-2, PS 12-3 and PS 13-1 wells. Under 20 AAC 25.105, all permitted wells on a property must be properly abandoned before expiration of the operator's rights. Upon expiration of the lease, if these wells are not plugged and abandoned to the satisfaction of the AOGCC, UAF's bond will be forfeited. Forfeiture of the bond will not relieve UAF of responsibility for plugging and abandoning of the wells under AS 31.05. If Unaatuq, LLC desires to take over operatorship of these four wells, a Designation of Operator Form (Form 10-411) must be submitted to and approved by the AOGCC, as provided under 20 AAC 25.020 in addition to filing the bond required by 20 AAC 25.025. Please call Ms. Patricia Bettis at (907) 793-1238 if you have question concerning this matter. Sincerely, i°90e-'41 Cathy P Foerster Chair, Commissioner Attachment cc: Kit Duke,Associate Vice President University of Alaska Facilities and Land Management 1815 Bragaw St., Ste. 101 Anchorage,AK 99508 Larry Hartig, Commissioner Department of Environmental Conservation P.O. 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'a a a a a * • 8, U.S. Postal ServiceTM CERTIFIED MAILTM RECEIPT o o z , >°2u) ®trj (Domestic Mail Only;No Insurance Coverage Provided) a [II C`� • m o 1--1 (�,/ ly T %,...), y V For delivery information visit our website at www usps com® 171 ' ' E — ' m m Lu =.,---,,- y, .�ti-, •1 g c d 0 8 al 11 Postage $ Z a 33 4-1 i CO 42' -o g i Certified Fee i:....- (S--G-7— .4)U at 0 ci a r i IA CO O3 Postmark W a) C'- Return Receipt Fee to ra a• i'` z 0 (Endorsement Required) Here 'a Ca r= v v m Restricted Delivery Fee ? /a 0 g ' 2 p r 1 I Q (Endorsement Required) W fie -8 5 •8 - $ Q 13Ifl -- v W cmiUrr u C7 CI Total Postage � >..." c u n cmi Matt Ganley, Resources and External Affairs o �' = a ❑0 0 u7 g ru Sent To Unaatuq, LLC o a tri o ri v Q cc E ra O Street,Apt.No.; c/o Bering Straits Native Corporation '1' `: m a N or PO Box No. ,. ciry,ware,ZIP- Post Office Box 1008 iru cc Nome AK 99762 © .k+. *°"'--- m °' d e •8 O F PS Form 3800.•... -... 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Tracking Number: 70123050000148126822 Updated Delivery Day: Monday,September 15,2014 Product & Tracking Information Available Actions Postal Product: Features: Certified Mail' Return Receipt After Mailing DATE&TIME STATUS OF ITEM LOCATION September 15,2014,8:15 Delivered FAIRBANKS,AK 99775 am Your item was delivered at 8:15 am on September 15,2014 in FAIRBANKS,AK 99775. September 15,2014 8:14 Arrived at Unit FAIRBANKS,AK 99775 am September 13,2014,9:19 Departed USPS Facility ANCHORAGE,AK 99530 pm September 12,2014,9:06 Arrived at USPS Facility ANCHORAGE,AK 99530 pm Track Another Package Tracking(or receipt)number Track It HELPFUL LINKS ON ABOUT.USPS.COM OTHER USPS SITES LEGAL INFORMATION Contact Us About USPS Home Business Customer Gateway Privacy Policy Site Index Newsroom Postal Inspectors Terms of Use FAQs USPS Service Updates Inspector General FOIA Forms&Publications Postal Explorer No FEAR Act EEO Data Government Services National Postal Museum Careers Resources for Developers Copyright©2014 USPS.All Rights Reserved. 12/2/2014 • • Colombie, Jody J (DOA) From:. Bettis, Patricia K(DOA) Sent: Tuesday, March 03, 2015 2:30 PM To: Colombie, Jody J (DOA) Subject: FW:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Attachments: AppD_wellhead repairs.pdf For OTH-14-019 From: Alan P. Baldivieso [mailto:ABaldivieso(aaidea.orq] Sent: Tuesday, March 03, 2015 1:00 PM To: Bettis, Patricia K (DOA); Schwartz, Guy L (DOA) Subject: RE: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Thank you, Patricia. I spoke with Chris and he sent the attached report detailing the repairs that the University had done to some of the wellheads. Based on the conversation I had with Guy this morning, the application for sundry approvals will need to include specifics from the contractor that is ultimately selected to perform the work. I have identified several contractors that are familiar with the Pilgrim Hot Springs wells, but will need to accept bids through our procurement process prior to awarding the contract. I anticipate that the earliest the work can begin will be in July, although the road to the site may be clear of snow earlier than usual this year. I will specify that the work be completed by Sept 30, 2015. Is this approach to plugging and abandoning the 6 wells acceptable? Thank you, Alan Baldivieso Program Manager Geothermal, Hydrokinetic, Emerging Energy Technologies Alaska Energy Authority (907) 771-3027 From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent:Tuesday, March 03, 2015 11:51 AM To:Schwartz, Guy L(DOA) Cc:Alan P. Baldivieso Subject: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Guy and Alan, This report may be of use to you. UAF may have worked on some of the wells. Christopher Pike may be able to provide you with that information. His telephone number is (907) 272-1522; cell is (907) 888-3850. Regards, Patricia 1 • 1• 0 j 0 • ..- ' . ° Y , 4iiit., f �S , 1 i c t e .. SI Figure 3.PS-3 { 1y e O ir- r$ �1 , „.- ' 4thth. .4 �' r e i- • f !;1 , : iri' ,.,' 1 ' ra. '+ t ,, .'fit ' ",,. ' 4` , ,' ..,y!„‘ ....,t, ' ' 'A., ' ' . ', — 1.4":'..!i.'- .'1,- .. I 'I , " i 1 /I. t i,d itsari, i1 :Oit$0 4' qk I V tt r t Figure 4.PS-4 r • • r • I: gy�y�► , 'R A{ 1'I-k I {. s ;., 4 s :.4.., +ay4A _•, �•/ir is // jea 'Fy^ .,may }1.411" { *' fix' t 'i {y � r ,y ! ;ry a ; ,,,_...,1,57.4 7,,r,,,,,jr, .,_).-1-;',tf411"....... .4 ,,-- , '''''' -,,,,4 3,4,...11":1:7.:1,;(4L:::,-;r',,,.kt* 14'; 19 w :' Figure 5.PS-5 `',,4tr..0‘, . t v.} r F f�*'i I, .v B ! 1 Grp ' ",. � ' d f f {fit "k �. ,1 '.i ' ' Kt ,„ /14 �i4I('' Figure 6.MI-1 S ,, it , If . , . ., . : b.. 1:.'. � ° (j. ,,,,;-.,r Hyl J f jj2 i�y # r '' . ye y s I t ! �illtk � �t ' ,../' ! d t' l x _ 8 h ; 4, r IF I ti,-* ,,,i',.; 'Y°y'- 0. 4. xr ` y I ,# k } ' i -%:"I: , , / ' ..1-1:' a� f f ..., 1cf V {{ ,n s v ft f t` Ise!', r.v.. 1 .et , , ..-'. ', -44,,,,s, ;,..t,;0,,, , , i ,..; 4,,,,,,, , iiiii, • 44, r,.:, aim Elm Meters Legend 0 165 330 660 990 1,320 N Man Made Structures N Well Locations 1 :9,386 1 centimeter = 94 meters Figure 7.Map of Pilgrim Hot Spring Well Locations • • Appendix D Pilgrim Hot Springs Well Head Repairs • • Pilgrim Hot Springs Geothermal Exploration Project Pilgrim Hot Springs Wellhead Repair Prepared by: Dan Brotherton,Arctic Drilling, Inc.& Markus Mager,ACEP Fairbanks Alaska,September 2010 w OCs ACEP Alaska Center for Energy and Power Alaska Center for Energy and Power University of Alaska PO Box 755910 Fairbanks,AK 99775-5910 1 • ! Pilgrim Hot Springs Wellhead Repair Prepared by: Dan Brotherton, Arctic Drilling, Inc. & Markus Mager,ACEP Overview This task was completed in two phases, including: 1)an initial site visit in July 2010 to assess the condition of the six existing wells and develop a work plan for replacing the wellhead assemblies as needed, and 2)a second trip to the site to complete the work outlined in the work plan. This trip took place September 13th-18th. The goal was to stop the wells from leaking, and make them accessible for instrumentation as part of the DOE funded project 'Innovative Geothermal Exploration of Pilgrim Hot Springs, Alaska'. This report details the work performed on the individual wellheads during the September trip, which included replacing the gate valves on 4 of the 6 wells, including PS-1, PS-3, PS-4 and MI-1. At this time, none of the wells are leaking to the surface although there are still weak points which need to be addressed in the future. Recommendations for future work are outlined in this report. The team performing the work included Dan Brotherton from Arctic Drilling, Richard Eggert, and Max lyapana from Bering Straits Development Company(BSDC), and Markus Mager from ACEP. For each of the four wellheads that were repaired,the team removed the existing gate valves by pumping down the water level in order to access the well and installing new,stainless steel valves.A detailed work description for each well can be found on the following pages. The team did not alter the configuration of the wellheads except for installing an additional fitting on top of the blind flanges capping the gate valves that can accept a 3" stainless standpipe with a tee and a valve to allow future installation of monitoring and logging equipment. A 1" access port with a plug was also built into the top of the blind flange. We recommend installing chains and locks on all the new valves and that all valves should be tested for functionality(opened/closed) at least once a year.Winterization of all the wells is necessary in order to prevent freezing and cracking of the gate valves. A plan for winterization has been forwarded in a separate communication that is attached to this report. Mobilization All new valves (6), parts,tools and supplies,totaling 3,8421bs,were purchased or rented by ACEP and shipped to Nome via Northern Air Cargo (NAC). Additional heavy equipment such as 4 wheelers,trailers,a bobcat and an air compressor were rented in Nome from BSDC. All parts,tools and equipment were transported to the side on September 13th and 14th and staged at the central staging area (Figure 1). Repair work began on the 15th,and was completed on the 18tH 2 40 • central staging area for repair work , ._ hot tub _*''v Fri '0. , _„ . ,,,,.., . . ,...„....„:„. .. _, .+ �� t,,,�- or r . .. ,i: ✓ x,; l. w , ''�+ � to n i ,..: / s. #s . '� * r , xtbt ,,%, . 4. " -,,:,--_-„t. '� k 'rye''pr` g* 4 .„.., 'k. eti � _.�,>�, X4 iters III y, ''''',*N:' "�[� Figure 1.Central staging area for repairs. PS-4 (Completed September 14-15`h) PS-4 supplies the water for the hot tub from a 2in lower valve.The well was leaking from a'/2 inch hole in the blind flange on top of the 10in well gate valve and from the corroded 2in valves on each side of the 10in casing underneath the 10in valve (Figure 2). The lower bolt flange of the 10in valve was covered with mineral buildup and corrosion scale.There was a small pond around the well at the level of the 2in side valves from the constant leaking and overflow from the tub. The team laid down timbers and planks to create a stable work platform and removed mineral build up and rust scale from the lower bolt flange (Figure 3).After various failed attempts to release the old 10in valve from the well flange,the bolts had to be cut off with a torch (Figure 4& 5). 3 • • k A :. 4 : t ,, rn rli°i „„. 1 £ . ; / f +fes '.4., • „ar t ti ` ^4 Zi , � r , , Ott xi.� t *„„►i' r Awa lfi�f;xti'CI r �*1. 4 } J�{ S `t ,i r �1Y,5' t o `,,,+ „, �g{ 4 "t;.i i x V ( y p.x Y j jf t)1 ,„ p � ,s„4,..44„?fid � ��;.� a F+x'�_"*,,,,i iA .p'j._4 �((.�eLI �4 ,�g t si +;ii,,,i,` d*i,.,, T f ' 444i .r , �.r ="r 4- *- ..6 .„.. f . { • ,fj er j i � ��d, ,�'�” ?t 4 ;,�r� 4 ��`r`"�"�j+j r'y°�� fit a N.�I� �,� 77�f Figure 2.Arrows show areas of leaking on PS-4. PS-4 Removing mineral buildup and corrosion scale from lower flange t3, � 4"w e # u} .", - -,,, ' k 4.,,, '4V-0.,�< ,, M t a 4. a w ",« OW k. a{ / xII .. +" � 'Y }", — 'Kf A I '� �� , IiiP Figure 3.Removing buildup and scale and attempting unsuccessfully to cut the flange bolts with a Sawzall. 4 • • PS-4 Dan cu '-. : s off old valve f , , ,,,, .•::•-r-,-1 ,., •:::-,,..?:::::.,• :',,,::,-.."7,'.1.,„';'-,,;:;',;,',ii,„-;•i ::.-:'' ..;:''' *f.7::,',.i.10;.,-;-',, '. ,-.,,, ,,, •,-•,-'' '•'. ... . •,:i.- f.J4_,%,,•nt-4.:„--.„-.4.,,.... ,....!...„ .,-..,,,.-8.:!.e.. ,..,;;44.1,,tr.-.4' r '-..-": , ,•"' • f#4,,,,... :...,,,,,4,,::::::-,,,. ..-..:7,...,:;‘!..f;,..- -,-47,:i.4!...,,;;,!!.'47•C',,-;':Yi,c4,..":•!: -:f lio .....). :.,...,......,,.. ,, , t f .,,,i61„.... .incilist . i i ry # r Y ' ' :Amar' - +�'..r^Qt t. • M4. . .r : ..r0 e,„ . �. s N Ian* y 14?"-',1,..- ittel ' • F ,, ..„. „( 'tee '” . '*':r,':::,. _ , F#�.^ '$� .:;,, Figure 4.Cutting bolts to remove old gate valve. :- P Rema.,:.,,in.' valve 6 ...-"7--;.- �7; .{ fig. , f ,fix : a .r s 'A + f ' Figure 5.Removing gate valve with Bobcat—note artesian flow from well. 5 • • • PS-4 has an inner 8in and an outer 10in casing.The outer casing is corroded and thin.The 8in/10in annulus (space between the two casings)continued to produce water after the water level inside the 8in casing was drawn down. This indicates a likelihood that they are set to different depths and water is produced from a different production zone in the annular space than through the main hole. In order to weld on new 2in nipples, this water would need to be drawn down. We were able to partly draw this water down with a lin suction tube, but it was ultimately decided to not risk changing the 2in nipples after it was determined they are corroded but still sound (probably just as sound as the casing). Dan was not confident that the casing could be welded given its state of deterioration, so rather than risk creating a difficult to stop leak, the original nipples were left in place and only the 2in valves were replaced with new stainless 2"valves (Figure 6). `Y x PS-4 new valves w •-•"*.: Calves but nipples they attach to were notp.,0144 <# 'ngyt 3 - ' sW ;i - • old casing and the two owes are still weaknesses Figure 6.New valves. The flange on this well is partly eaten away but still appears to be sound. The well is artesian and produces clear water. We installed a new 10in stainless steel valve with reducer flange on top connected to a 3in threaded nipple with a stainless cap. The well has no visible leaks and has been re-connected to the hot tub via one of the new 2in valves. Further repairs on this wellhead will be needed in the near future. The 10in casing and the 2in nipples are thin and will eventually start leaking with no way to control or stop the flow. Dan recommends that the 8-10in annulus be cemented from the bottom up to the top via tremie pipe which would seal off the corroded outer casing from the well water and would extend the life of the well. We are also recommending locks on the 2in valves to guarantee flow to the hot tub, prevent accidently closure (or opening) and to prevent well freeze up since this well will presumably not be shut in through the winter. If this is the case, it is imperative that the 2in valve remains open to prevent the new gate valve from freezing. 6 • • PS-3 (Completed September 15-16th) Prior to repairs,this well was leaking through the standpipe at the top of the well and later, after we started to remove buildup and scale (Figure 8),from a hole in the side of the 10in valve(Figure 7). We were unable to plug this leak so we dug a sump hole to drain the fluid and temporarily pump it away from the well and surrounding work space. PS-3 PS-3 example of corroded standpipe cutting of elihead w5 4 ,gam �� , �"��':::* } , i: '...... y4` .te°' .t „� a' '` y' ' ;;;,17.":" . A r s .,., +F� 10' . ,♦ r . at '` Maks " 211 old valye rte" Figure 7.Image showing leaks and corroded standpipe. 7 0 • PS-3 remove scale & mineral buildup from old valve t,' fr ", • 41.111a ia Figure 8.Removing scale and buildup. There was significant corrosion to several of the bolts connecting the existing gate valve to the wellhead flange, which necessitated cutting them off with a torch. We were able to drive out some of the bolts once they were cut, but several posed additional challenges and had to be removed in chunks. The torch was damaged during this process. Eventually we were able to remove the old 10in valve and replace it with the new stainless valve and bolts.The lower flange of the wellhead is severely corroded and the new flange bolts are exposed. The flange thickness is about half of original thickness and there is barely enough material left to secure new flange bolts (Figure 9). The well was completed with a new capped gate valve and blind flange, with a Sin nipple and cap. There isatin valve below the flange which was left in place as it is not currently leaking. Dan was not confident the well casing is sound enough to permit replacement of this valve. PS-3 exposed boltsand old 2 inch valves-, with new valve exposed bolts � '✓` '> '` P. —,'A old flange in bad condition + '- + r '} a r old2inchvalve # ` - 4 not replaced — 4.. e Figure 9.Exposed bolts,new valves. 8 • • PS-3 is hotter than PS-4 and produces clear water. There is also a 6in inner casing in this well that comes to the top of the 10in casing. Once the old valve was replaced,there were no visible leaks. Figure 10 shows a comparison of the old PS-4 valve flange and the old PS-3 valve flange. ,1,,,,-!' Y*- S-3 & PS-4 w ''''' I od Jv s ",,� r .r _ 's is �'0.S .4-ii,*03,rtc"j, Y„YC„-r m, t '� r t f 4 4-4, "b PS-4 -iF4-74#01%.4 „ ..,•• , - ' ' i , Ifi- 'eir , ,- +�ort, ti*. ,►+prte ,.. ri 114414 4,..„,,,,,,..—z„--41. arthh;t... .,....i...-..1, . , Figure 10.Old 10in valves from PS-3 and PS-4. Note severe corrosion on lower PS-3 flange. Further repairs will be needed to this wellhead soon. Dan recommends cementing the 6-10"annulus from the bottom up with tremie pipe so that the side valve can be removed and the main well flange can be replaced. This will protect the well from a permanent leak if one develops from the corroded casing. MI-1 (Completed September 16-18th) This well is located on adjacent Mary's Igloo Native Corporation land.The top of the 10in gate valve was split in half, probably due to a freeze break. We were able to open and close the old gate valve but could not completely stop the flow of the well. MI-1 is colder than PS-4,and the water temperature of this artesian well appears to fluctuate. When flowed for a short period of time it produced gray,silty fluids. The well has no visible inner well casing. Due to leaks in the wellhead, a small pond had formed around the well several inches deep. We cleaned out an existing trench leading away from the well and the pond drained away to ground level. We built a work platform around the well and removed mineral build up, rust and scale from the bolts. Dan cut the bolts and drove them out with the torch. We removed and replaced the 10in valve with new stainless steel valve and bolts (Figure 11). The new gate valve is capped with a blind flange with 3in welded nipple and cap. 9 • • if ' MI-1 MI-1 delivering new valve 4 N$ t xk ^,fir -�A. • Yr. _ - Figure 11. Work commences on MI-1. Note artesian flow prior to pumping. Prior to repairs,the well was also leaking from several holes corroded through the casing below the gate valve flange.These leaks continued after installing, capping and shutting the new gate valve. The casing is paper thin midway between the flange and the cement. Dan welded a sleeve around the casing from about 2in above the cement level up to the flange,totaling about 14in. In order to weld on the sleeve, he completely removed the side valve, nipple and weldolet from the 10in casing.The sleeve stopped the leaks temporarily but the casing below the sleeve is thin and remains a significant weakness (Figure 12). Dan recommends installing a 6in inner casing and cementing the annulus from the bottom to the top via tremie in order to prevent further leaking once the casing corrodes further. . ' ., , - AAI 1 �. corrode asi . epair w .71....z.,--.::- , __, installation of new sieev, .. .,...,, a . - ", '' z y. f f , . 4 . , ,,,,, . ., „.„., ,..,.,,,,„,„, „,..i .„ t old side valvur p ' ' ro . completelyremoved r Figure 12.Casing conditions of MI-1. 10 • • PS-1 (Completed September 18th) PS-1 is the hottest of the repaired wells. This well was buried past the valve handle and covered with several inches of mineral buildup. Before repairs, it leaked out of a corroded two inch elbow from the top of the wellhead,as well as the remains of a 2in valve and a 1in hole in the top of the well cap (Figure 13). These holes were plugged with sticks driven into the openings after some of the mineral build up was removed. We then excavated around the well to just below the lower valve flange covering an 8ft by 10ft area,dug a sump hole for the water pump and laid down blocking and timbers for a work platform.We removed the mineral build up and de-scaled what remained of the bolts (Figure 14). P5-1 before repair wor k f - aitt Figure 13.PS-1 after excavation but before repair work. 11 • PS-1 Richard and Max remove scale & mineral buildup from old valve " y�r ,' J� R �� ` • 4. , ICS S,^4', .' 4,fr titer ..\y4 Figure 14.Removing scale and buildup prior to replacing gate valve. When the gate valve was removed, it was evident that the lower flange was almost completed corroded away with no bolt heads remaining and the bolt threads visible from the side of the flange. We used the torch to remove the bolts, removed the old gate valve, cleaned up the flange as much as possible, and installed the new 6in stainless valve topped with a stainless blind flange, 3in nipple and cap(Figure 15). PS-1 h new valve -; l 4r fir" Kn , ' '4.--1, .,fir ✓ �. 0" rexcavationaround the_we11 ,.`` iPs " 1 In hose Figure lvinstalled on PS-1. Note collapsed suction hose due to high temperatures. This well has a 4in inner casing inside the 6in outer casing,and does not have any lower casing 2in valves. There is not much left of the well flange,just barely enough to bolt on the new valve. The well is sealed and does not 12 • • leak at this time. We backfilled around the well but not to the previous level so it is possible to access valve handle. We left the remaining dirt piled to the side of the excavated area. Dan recommends installing a short (18in)spool section underneath the new gate valve to raise the valve above ground level and permit the well to be backfilled to ground level. This would also eliminate the standing water around the well,which is now below grade. He also recommends cementing the 4in-6in annulus and welding on a new casing flange in order to prevent future leaks. PS-2 This well is buried but inaccessible with rubber tired backhoe. We did not attempt to dig up this well. The wellhead valve is not corroded or leaking. We will attempt to make it accessible for instrumentation in 2011. i'\ ----i- , ii` � t� ,t , 0A • s ,--,/ .-,,", t f tp a .4,_ I . pry 'x ,,>•:. :. . - q y��L t i B'. '' i .:‘,.,.% . -::„.. 1•7,41...,E,,,t,' igri t ; .�t:. ._ , . .., .. tiri - r' ' f ""47. .4.Zi .xlll Figure 16.PS-2 buried but not leaking. We will need to excavate and replace valve before this well can be accessed with instruments. PS-5 This well is also not corroded or leaking so we did not replace the valve at this time. We will attempt to make it accessible for instrumentation in 2011. 13 i • : -7y`•�- - 4.` } i r d y 4� ' Za�" 1 � i ': fMP :::,..IV, :-..- ' 'f.,-., , It, 4.7,- fli ,,>. . . .r, ,.. . .. -tea f• .4. .. ,, , , ill.i..1 , „ vs''`„ V '' 4 `i g+ T 1f s: .y ,:i.,,, , P.",' II Figure 17.PS-5 still appears to be in good shape,but not accessible by instrumentation. Winterization Plan for Wellheads (Dick Benoit and Gwen Holdmann) The trick to keeping a wellhead from freezing and then breaking during sub freezing weather is to inject a liquid that is both less dense than water and has a very low freezing point into the wellhead. This fluid needs to be environmentally benign so that when (not if) it is spilled or leaks out of the wellhead it does no environmental damage. Typically a food grade vegetable oil has been used in the lower 48. A small pump is used to pump the oil into the highest opening in the wellhead but if the pressures are very low even a hand operated pump may be enough to do the job. We expect this to be the case for the Pilgrim wells. This pump obviously needs to be able to overcome the internal wellhead pressure and can pump at low rates. You will need to know how much oil has been pumped into the wellhead. Enough oil needs to be pumped into the wellhead to push or displace the water down the well to a point below the freezing level,which is probably not more than a few feet. Therefore, it is necessary to calculate the volume of the wellhead above ground and a few feet of wellbore below ground. We expect this might amount of a few tens of gallons per well. It is important to check the wellhead for leaks, no matter how slow, before injecting the vegetable oil. If the oil leaks out of the wellhead then the water will flow back up in the wellhead and freeze. We recommend doing this on the 4 wells with new gate valves prior to hard freeze-up. 14 • • Colombie, Jody J (DOA) From: Bettis, Patricia K (DOA) Sent: Tuesday, March 03, 2015 2:30 PM To: Colombie,Jody J (DOA) Subject: FW:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Attachments: AppD_wellhead repairs.pdf For OTH-14-019 From: Alan P. Baldivieso [mailto:ABaldivieso@aidea.org] Sent: Tuesday, March 03, 2015 1:00 PM To: Bettis, Patricia K (DOA); Schwartz, Guy L(DOA) Subject: RE: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Thank you, Patricia. I spoke with Chris and he sent the attached report detailing the repairs that the University had done to some of the wellheads. Based on the conversation I had with Guy this morning, the application for sundry approvals will need to include specifics from the contractor that is ultimately selected to perform the work. I have identified several contractors that are familiar with the Pilgrim Hot Springs wells, but will need to accept bids through our procurement process prior to awarding the contract. I anticipate that the earliest the work can begin will be in July, although the road to the site may be clear of snow earlier than usual this year. I will specify that the work be completed by Sept 30,2015. Is this approach to plugging and abandoning the 6 wells acceptable? Thank you, Alan Baldivieso Program Manager Geothermal, Hydrokinetic, Emerging Energy Technologies Alaska Energy Authority (907)771-3027 From: Bettis, Patricia K(DOA) (mailto:patricia.bettis@alaska.govj Sent:Tuesday, March 03,2015 11:51 AM To:Schwartz, Guy L(DOA) Cc:Alan P. Baldivieso Subject:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Guy and Alan, This report may be of use to you. UAF may have worked on some of the wells. Christopher Pike may be able to provide you with that information. His telephone number is(907) 272-1522; cell is(907)888-3850. Regards, Patricia 1 • Patricia Bettis Senior.Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettisPalaska.gov. 2 i • Colombie, Jody J (DOA) From: Bettis, Patricia K (DOA) Sent: Tuesday, March 03, 2015 2:29 PM To: Colombie,Jody.' (DOA) Subject: FW:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Attachments: 20100629 ACEP Reconnaissance Report Pilgrim Spring Geothermal Wells.pdf Jody, For OTH-14-19 From: Bettis, Patricia K(DOA) Sent:Tuesday, March 03, 2015 11:52 AM To: Schwartz, Guy L (DOA) Cc: Baldivieso, Alan P (AIDEA) (abaldivieso0aidea.org) Subject: FW: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 This time with the report attached. From: Bettis, Patricia K(DOA) Sent: Tuesday, March 03, 2015 11:51 AM To: Schwartz, Guy L(DOA) Cc: Baldivieso, Alan P (AIDEA) (abaldivieso@aidea.orq) Subject: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Guy and Alan, This report may be of use to you. UAF may have worked on some of the wells. Christopher Pike may be able to provide you with that information. His telephone number is(907) 272-1522; cell is(907) 888-3850. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 P • • Colombie, Jody J (DOA) From: Bettis, Patricia K(DOA) Sent: Tuesday, March 03, 2015 2:29 PM To: Colombie,Jody J (DOA) Subject: FW:ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Attachments: 20100629 ACEP Reconnaissance Report Pilgrim Spring Geothermal Wells.pdf Jody, For OTH-14-19 From: Bettis, Patricia K (DOA) Sent: Tuesday, March 03, 2015 11:52 AM To: Schwartz, Guy L (DOA) Cc: Baldivieso, Alan P (AIDEA) (abaldivieso@aidea.orq) Subject: FW: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 This time with the report attached. From: Bettis, Patricia K(DOA) Sent: Tuesday, March 03, 2015 11:51 AM To: Schwartz, Guy L(DOA) Cc: Baldivieso, Alan P (AIDEA) (abaldiviesoPaidea.orq) Subject: ACEP Reconnaissance Trip Report Pilgrim Springs Geothermal Wells Dated 2010 Guy and Alan, This report may be of use to you. UAF may have worked on some of the wells. Christopher Pike may be able to provide you with that information. His telephone number is(907) 272-1522; cell is(907)888-3850. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 — • • ACEp v r...• AfaNka Cent. -k'Elle"cw and P;yv.t r 6-29-10 Preliminary Reconnaissance Trip Report Pilgrim Hot Springs Geothermal Exploration Prepared by:Peter 1111g,Alaska Center for Energy and Power,University of Alaska Fairbanks Goals Our preliminary trip to Pilgrim H.S.was intended to locate, map,and determine the status of all 6 wells located at Pilgrim Hot Springs,including those on adjoining MINC land,and to get a general feel for stable ground in the area and potential challenges associated with ground-based surveys planned for later this summer. Notes on Geographic Coordinates When acquiring GPS points for this project,we determined it would be best to use Universal Transverse Mercator(UTM)as normal distances between lat long lines are distorted due to the high latitude arctic location of the site.UTM provides an easy to use square grid system. For this report I used NAD 1927 Alaska(5003),and the units are in meters.Please make sure that when using coordinates in the area to use this coordinate system. Site Overview Pilgrim Hot Springs is road accessible,although the last mile or so is in bad shape.There is a fair amount of stable ground in the surrounding area,and it seems possible to access all 6 existing wells with equipment needed to replace the wellheads without the aid of helicopter during appropriate times of the year.There are numerous historic buildings,including the church,dominating the north section of the area.To the south is the MI-1(see figure 7),with the Mary's Igloo well being furthest west. Well Descriptions We were able to locate all 6 wells during the trip,and have provided current descriptions of their condition below,with images from the wellheads included in Figures 1-6.Figure 7 shows the relative locations of all the wells.My colleague,Dan Brotherton,is preparing a plan to refit wellheads for all but one or two of these wells so they can be accessed to collect additional data.We have located the original well completion diagrams and other critical information related to the original drilling program in the report'Results of Drilling,Testing,and Resource Confirmation—Geothermal Energy Development at Pilgrim Hot Springs,Alaska'prepared by Woodward-Clyde Consultants in 1983.This report will be very helpful in developing a plan to rework the individual wells as needed. PS-1 (0503536mW 7218438mN) This well is located furthest north (closest to the church and nearest the main trail).It may very well be the hottest of the wells and appears to have significant artesian flow as evidenced through the leakages. The wellhead has a thick layer of silicious deposits on the exterior which has capped some of the leaks. This well will need to be refitted for further use. P5-2 (0503477mW 7218374mN) Located SW from PS-1 is PS-2.This well seems to be in fairly good shape,and is marked by a large white PVC tube.It is located close to the ground,and does not seem to be leaking. It does not appear • • • S necessary to replace this wellhead,although access with appropriate instrumentation may necessitate retrofitting a 2in valve to the wellhead. P5-3 (0503411mW 7218346mN) West of PS-2 is PS-3.It stands out clearly when surveying the area due to its higher wellhead compared to the others.it is also leaking,and will require refitting in order to access the hole.The silicious seal has sealed past cracks in the metal,however there is a constant artesian flow from at least unsealed leak. PS-4 (0503475mW 7218298mN) This is the well which feeds the main hot tub on the property.It leaks considerably,and has a few tubes connected to the wellhead which are presumably used to feed the tub.As with all the wells described thus far,it will require extensive work to be fully operational. PS-5 (0503478mW 7218122mN) PS-5 is the located furthest to the south.Additionally,it is in the best shape of all of the wells.The valves seem to be operational,and there is little rust on the wellhead.Hot water comes out of the valve that we tested which is attached to a garden hose.Getting to the well should not present an issue,however it should be noted there is a lake that was covered with a floating mat of grass that both Dan and I fell into. MI-1 (0503262mW 7218327mN) MI-1 is located furthest west on the field.It was drilled for a hot water source on behalf of Mary's Igloo Native Corporation(MINC).It has extensive damage to the upper part of the well,where a large crack can be seen in the wellhead.The flow is constant from the crack,with much of it being sealed with silica. This wellhead should also be replaced if it is to be accessed in the future for research or development purposes. Conclusions Dan Brotherton will be writing a report suggesting further steps to be taken on the existing wells to make them operational.This report will be shared with the well owners,Unaatuq, LLC and MINC.The next step will be to map culturally sensitive areas(grave sites, historical buildings,etc.)and property boundaries.This task is scheduled for late July or early August. Prior to this trip we will set up a phone conference with all the parties involved to address questions and concerns regarding that trip,to go over schedules,and to develop a backup plan. Figure 7,which is located on the next page,includes all of the well locations and some of the buildings on the property.Once more information on historic sites,and other important cultural features are identified,they will be added to this map.Any future drilling objectives will take all of this information into account so that any effects are minimized. For additional information or questions about this report please contact: Peter 1111g,ACEP illig.ak@gmail.com 907-602-1332(cell) • '0 7. �. a 9 *� IC e" ''.'"k1,1 :. 4' @�� '� r. Figure 1.PS-1 ` .. ..l ; ' ; /ate r++•• A°h•7'$- ,, , i , , i , , ii; I , ...1, / „ , * . IV 1,fi; '' .' ` , #, JP 4 b 1 t, ' for — -At a• fes. i . <* t.�.•�. .. .r t E * * � � Mr ® „frt., / .F�. �4F �i ��:'ypy.d § tma ,, , Figure 2.PS-2 ® • • Colombie, Jody J (DOA) From: Bettis, Patricia K(DOA) Sent: Tuesday, February 24, 2015 10:35 AM To: Colombie,Jody J (DOA) Subject: FW: Pilgrim Springs Geothermal Wells Jody, For your records OTH-14-019. Patricia From: Alan P. Baldivieso [mailto:ABaldivieso@aidea.orq] Sent: Tuesday, February 24, 2015 10:24 AM To: Bettis, Patricia K(DOA) Cc: Schwartz, Guy L(DOA) Subject: RE: Pilgrim Springs Geothermal Wells Thanks, Patricia. Alan Baldivieso Program Manager Geothermal, Hydrokinetic, Emerging Energy Technologies Alaska Energy Authority (907) 771-3027 From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@ alaska.gov] Sent:Tuesday, February 24, 2015 10:23 AM To:Alan P. Baldivieso Cc:Schwartz, Guy L(DOA) Subject: Pilgrim Springs Geothermal Wells Alan, I was missing the capital A. From: Bettis, Patricia K(DOA) Sent: Tuesday, February 24, 2015 10:16 AM To: 'abaldivieso@aidea.gov' Cc: Schwartz, Guy L(DOA) Subject: FW: Pilgrim Springs Geothermal Wells Alan, The attached wellbore schematics are what the AOGCC has on files for the listed wells. I am including Guy Schwartz on this e-mail as an introduction. Guy's telephone number is 793-1226. 1 Guy, Alan's telephone number is 771-3027. From the AEA Home Page,Alan is the Geothermal Program Manager. Alan may need help to fill out the sundry applications to plug and abandon the old Pilgrim Springs MI-1, PS-3, P5-4, PS-5, PS-1 and PS-2 wells. Patricia From: Parady, Fred E (CED) Sent: Wednesday, December 03, 2014 9:36 AM To: Fishergoad, Sara L(AIDEA) Cc: Bettis, Patricia K (DOA); Bittner, Jon S (CED) Subject: FW: Pilgrim Springs Geothermal Wells Sara: Attached is a copy of a letter we received regarding DCCED well closure obligations from the Pilgrim Springs Geothermal project from 1979-1982. The operator is listed as DCCED Division of Energy and Power. Did that migrate into AEA, and can you help me run this to ground? We need to come up with an abandonment plan or plan of suspension. We also likely need to apply for an extension. We are working against a 12/15/14 deadline. Thanks for your help. Fred From: Bettis, Patricia K(DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L(DOA) Subject: Pilgrim Springs Geothermal Wells Good morning Acting Commissioner Parady, I checked the USPS certified return receipt(green card)and the Alaska Department of Commerce,Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12,2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy& Power for which the AOGCC has a record. This includes Mary's Igloo-1, PS-3, PS-4 and PS-5. Please note that these are old wellbore schematics contained in a 1983 Woodward-Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase II: Results of Drilling,Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia 2 • • Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 3 • • Colombie, Jody J (DOA) From: Matt Ganley <mganley@beringstraits.com> Sent: Friday, February 20, 2015 1:22 PM To: Bettis, Patricia K(DOA) Cc: Colombie,Jody.) (DOA) Subject: RE: Pilgrim Springs Geothermal Wells (Docket No: OTH-14-019) Patricia: An Unaatuq Board meeting is scheduled for March 7th and we can have the minutes recertified and signed then. They were approved at the last meeting on October, but were not signed at that time. I will get you a copy of the minutes immediately as well as our documentation and request concerning maintaining the current well status. Thanks. Matt Ganley From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent:Thursday, February 19, 2015 2:35 PM To: Matt Ganley Cc:Colombie,Jody.) (DOA) Subject: FW: Pilgrim Springs Geothermal Wells(Docket No: OTH-14-019) Good afternoon Matt, What is the status of submitting to the AOGCC a signed copy of the September 12, 2014 Unaatuq, LLC Management Board Meeting, signed by a Management Board Member? Please see my January 29th email. Thank you, Patricia From: Bettis, Patricia K(DOA) Sent: Thursday, January 29, 2015 2:10 PM To: matt@beringstraits.com Cc: Colombie, Jody 3 (DOA) Subject: Pilgrim Springs Geothermal Wells (Docket No: OTH-14-019) Matt, This email is to summarize our phone conversation on January 28, 2015, regarding the Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1 geothermal wells. If AOGCC approves Unaatuq, LLC's request to be designated operator, Unaatuq, LLC will bear full responsibility for assuring those wells are in compliance with all of AOGCC's statutes, regulations and orders. Unaatuq, LLC is responsible for knowledge of those statutes, regulations and orders. Regarding the status of Unaatuq, LLC's request to approve the change in operator, the submitted documentation is incomplete. Specifically Unaatuq, LLC needs to submit a signed copy of the September 12, 2014 Unaatuq,LLC Management Board Meeting, signed by a Management Board Member. Unaatuq, LLC also understands that the wells shall not be left in the current status quo. If Unaatuq, LLC does not demonstrate to AOGCC that the wells should be suspended, and not completed and put into production or abandoned,then the AOGCC will likely order the wells be property plugged and abandoned. See, 20 AAC 25.105 and 20 AAC 25.112. Responsibility for plugging and abandoning the wells, as well as all costs associated with the abandonment procedure, rests with Unaatuq, LLC. Applications for Sundry Approvals to suspend the wells must be submitted to the AOGCC within 15 business days of the date that AOGCC approves the change in operator. A separate application is required for each individual well. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approval and a proposed well schematic diagram shall also be submitted with the sundry application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells to the satisfaction of the AOGCC. If you have questions, please do not hesitate to call me. Best Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 • . Bettis, Patricia K (DOA) From: Bettis, Patricia K (DOA) Sent: Thursday, January 29, 2015 2:10 PM To: matt@beringstraits.com Cc: Colombie,Jody J (DOA) Subject: Pilgrim Springs Geothermal Wells (Docket No: OTH-14-019) Matt, This email is to summarize our phone conversation on January 28, 2015, regarding the Pilgrim Springs PS 12-1, PS 12-2, PS 12-3 and PS 13-1 geothermal wells. If AOGCC approves Unaatuq, LLC's request to be designated operator, Unaatuq, LLC will bear full responsibility for assuring those wells are in compliance with all of AOGCC's statutes, regulations and orders. Unaatuq, LLC is responsible for knowledge of those statutes, regulations and orders. Regarding the status of Unaatuq, LLC's request to approve the change in operator, the submitted documentation is incomplete. Specifically Unaatuq, LLC needs to submit a signed copy of the September 12, 2014 Unaatuq, LLC Management Board Meeting, signed by a Management Board Member. Unaatuq, LLC also understands that the wells shall not be left in the current status quo. If Unaatuq, LLC does not demonstrate to AOGCC that the wells should be suspended, and not completed and put into production or abandoned, then the AOGCC will likely order the wells be property plugged and abandoned. See, 20 AAC 25.105 and 20 AAC 25.112. Responsibility for plugging and abandoning the wells, as well as all costs associated with the abandonment procedure, rests with Unaatuq, LLC. Applications for Sundry Approvals to suspend the wells must be submitted to the AOGCC within 15 business days of the date that AOGCC approves the change in operator. A separate application is required for each individual well. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Note, a current well schematic diagram must be submitted with each Application for Sundry Approval and a proposed well schematic diagram shall also be submitted with the sundry application to show proposed downhole well design changes for plug and abandonment plans. All information required by 20 AAC 25.110 must be included or the application will be denied and the AOGCC will at that time will look to Unaatuq, LLC to plug and abandoned the wells to the satisfaction of the AOGCC. If you have questions, please do not hesitate to call me. Best Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907)793-1238 1 • CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 • • Bettis, Patricia K (DOA) From: Bettis, Patricia K (DOA) Sent: Monday, December 29, 2014 11:19 AM To: Gwen Holdmann (gholdman@alaska.edu); 'matt@ beringstraits.com' Cc: Colombie,Jody J (DOA) Subject: Pilgrim Springs: Designation of Operator Form 10-411 (Rev.7/2009) and Bonding Requirements Attachments: 20141021 Pilgrim Hot Springs well bonding.pdf Re: Designation of Operator Form 10-411 (Rev. 7/2009) and Bonding Requirements: Pilgrim Springs Geothermal Wells PS 12-1, PS 12-2. PS 12-3, and PS 13-1 Dear Mr. Ganley and Ms. Holdmann: The Designation of Operator Form 10-411 (Rev. 7/2009) submitted to the Alaska Oil and Gas Conservation Commission (AOGCC) on December 12, 2014 via e-mail is incomplete and therefore not accepted. As required by 20 AAC 25.025, Unaatuq, LLC must first establish a new bond with the AOGCC. The AOGCC must receive and approve this bond before any other forms will be processed. The AOGCC will not accept the transfer of the existing bond from the University of Alaska, Fairbanks Alaska Center for Energy & Power's (UAF)to Unaatuq. For the Designation of Operator form, please submit a completed form with original signatures to the AOGCC. Box 4, Effective Date of Designation, must be filled in reflecting the date the designated operator changes. This effective date must not be earlier than the date that Unaatuq, LLC's bond becomes effective. Per the instructions in Box 5 and Box 6, a Power of Attorney or other evidence of authority must be attached for each person signing the form. The applicable UAF lease will be expiring soon relative to the aforementioned geothermal wells. Under 20 AAC 25.105, all permitted wells on a property must be properly abandoned before expiration of the operator's rights. In consideration of the holidays, the AOGCC will grant UAF and Unaatuq, LLC until January 31, 2015 to establish a new bond and to submit all required information to effect the change of operator. After that date, the AOGCC will be looking to UAF to submit an acceptable plan for the plugging and abandonment of the wells. Absent the parties providing AOGCC with the information and bond required to effect a change of operator, forfeiture of the UAF's bond will occur as of February 1, 2015. Please call Ms. Jody Colombie at (907) 793-1221 if you have questions concerning posting of a bond or information required to complete The Designation of Operator Form 10-411 (Rev. 7/2009). Best Regards, Patricia • • PS I attached AOGCC's instructions concerning well bonding sent to UAF on October 21, 2014 for reference. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 S • From: Colombie,Jody 3(DOA) To: Bettis,Patricia K(DOA) Subject: FW: Pilgrim Hot Springs well bonding Date: Monday,December 29,2014 11:11:14 AM From: Colombie, Jody J (DOA) Sent: Tuesday, October 21, 2014 2:10 PM To: Christopher Pike Subject: RE: Pilgrim Hot Springs well bonding Christopher,please see below. Bond Instructions Each operating company ("operator: see 20 AAC 25.990(46)) establishes a single-well bond or a statewide bond with Alaska Oil and Gas Conservation Commission (AOGCC) under Regulation 2Q AAC 25.025 to drill, produce, and maintain oil and gas wells. An operator's bond remains active from the time the operator applies for a Permit to Drill for its first well until all wells operated by that particular company are plugged and abandoned according to state regulations and all well sites are restored in conformance with Regulations 20 AAC 25.170 or 20 AAC 25.172. The AOGCC does not establish bonds solely for the purpose of dismantling, removing and restoring wells. The AOGCC's website contains a general discussion of bonding requirements and the permit to drill process at the following hyperlink: http://www.doa.alaska.gov/ogc/functions/OvrSurvindex.html. This link will take you to a web page that is titled "Oversight and Surveillance." This is a long page, but it explains both processes and the imbedded hyperlinks will take you to all of the regulations and forms. Each of the headings on the page are hyperlinks. Clicking on them brings the text and descriptions into view. This web page is provided for your convenience; please be sure to review the Alaska State Statutes and the Alaska Administrative Code,which are the ultimate authorities. Operators can choose to submit either a surety bond (Form 10-402A) or a personal bond (Form 10- 402B), depending on the financial instrument used. AOGCC's bond forms are available online through our website using the "Forms& Functions" hyperlink. Form 10-402A is required to establish a Surety Bond. A Personal Bond is established using Form 10-402B. If a surety bond is used,the insurer must be authorized in Alaska. You can check this online at: http://www,dced.state.ak,us/ins/apps/companysearch/InsCompanyStart.cfm. Type in the insurance company name, click on the "Submit" button, then click on the hyperlink in the "Company Name" column, click on the "Line of Business" hyperlink, and scan down the "Line Name" • • list to find "Surety" and then across to find the effective date for that company's license in the State of Alaska. If"Surety" is not in the list,then the company is not authorized to provide that service in Alaska. If an operator chooses to use a Certificate of Deposit (CD) as the financial backing for the bond, then the operator must submit: 1. Personal Bond form (Form 10-402B), 2. CD documentation or receipt, and 3. Assignment of CD form (available on AOGCC's "Forms" page beneath the Personal Bond (10- 402B)form). The CD must clearly state that the certificate of deposit is issued in the sole favor of the Alaska Oil and Gas Conservation Commission, and it must be obtained from a bank authorized to do business in the State of Alaska. If you chose to use an out-of-state bank or credit union,you can check whether or not that institution is authorized by going online to: http:/Jcommerce.alaska.gov/dnn/dbs/Banking/ModelForeignBankLoanAct.aspx. Please note that Powers of Attorney are required for every representative signing these forms. These Powers of Attorney must demonstrate that each person signing has the legal authority to bind the corporation to lease agreements. The bond cannot be processed until the AOGCC has Powers of Attorney for every representative signing these forms. Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission. 333 West 7th Avenue Anchorage, Alaska 99501 Jody.Colombie@alaska.gov Office: (907) 793-1221 Fax: (907)276-7542 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or jody.colombie@alaska.gov • From: Christopher Pike [mailto:cpike6alaska.edu] Sent:Tuesday, October 21, 2014 11:40 AM To: Colombie,Jody J (DOA) Subject: Pilgrim Hot Springs well bonding • • Hello Jody- I work for the Alaska Center for Energy and Power at UAF and I'm working on the Pilgrim Hots Springs project. We are currently completing the geothermal exploration program that we've been leading at the site. Blanket surety bond # 105781660 was issued in July 2012 for the wells drilled as part of this project. I've been in contact with Guy Schwartz and Patricia Bettis and they indicated that I should bring bonding questions to you. The landowners are interested in maintaining the three temperature gradient wells that were drilled in 2012 for aquifer monitoring as well as a larger production well that was drilled in 2013. All parties realize that the bonding obligations must be met, however UAF cannot maintain their bond after our role in the project ends. Can you explain the necessary steps that must be taken by both UAF and Unaatuq (the landowner). My understanding is that the landowners must take out a bond and have it approved by the AOGCC and at that time,the AOGCC will release UAF from its bonding obligations. Is this understanding correct? What forms must be filled out . Any guidance you could give is appreciated. Thanks, Chris Chris Pike Research Professional Alaska Center for Energy and Power tel: 907-272-1522 c: (907) 888-3850 www.uaf.edu/acep • • Bettis, Patricia K (DOA) From: Sara Fisher-Goad <SFisherGoad@aidea.org> Sent: Wednesday, December 03, 2014 2:12 PM To: Bettis, Patricia K (DOA) Cc: Parady, Fred E (CED); Bittner,Jon S (CED) Subject: RE: Pilgrim Springs Thank you. Although we have no one on staff who was here during that time, it does appear with some of the documents we uncovered that it was a division in Department of Commerce and not a part of AEA or old APA. Fred— regardless of that issue,we can still help get this issue addressed. Sara From: Bettis, Patricia K(DOA) [mailto:patricia.bettis@alaska.gov] Sent: Wednesday, December 03, 2014 2:01 PM To:Sara Fisher-Goad Cc: Parady, Fred E (CED);Jon Bittner Subject: Pilgrim Springs Sara, The AOGCC records show the Division of Energy& Power as the operator of record for Pilgrim Springs-1, Pilgrim Springs- 2, Pilgrim Springs-3, Pilgrim Springs-4, Pilgrim Springs-5 and Mary's Igloo-1 geothermal wells. Hence, AOGCC's September 12, 2014 Pilgrim Springs Geothermal Wells letter was sent to the Alaska Department of Commerce, Community, and Economic Development. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 • • Bettis, Patricia K (DOA) From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 2:01 PM To: Fishergoad, Sara L (AIDEA) Cc: Parady, Fred E (CED); Bittner,Jon S (CED) Subject: Pilgrim Springs Sara, The AOGCC records show the Division of Energy& Power as the operator of record for Pilgrim Springs-1, Pilgrim Springs- 2, Pilgrim Springs-3, Pilgrim Springs-4, Pilgrim Springs-5 and Mary's Igloo-1 geothermal wells. Hence,AOGCC's September 12, 2014 Pilgrim Springs Geothermal Wells letter was sent to the Alaska Department of Commerce, Community, and Economic Development. Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907)793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 r • • Bettis, Patricia K (DOA) From: Sara Fisher-Goad <SFisherGoad@aidea.org> Sent: Wednesday, December 03, 2014 11:41 AM To: Parady, Fred E (CED) Cc: Bettis, Patricia K (DOA); Bittner,Jon S (CED) Subject: RE: Pilgrim Springs Geothermal Wells I have our geothermal project manager looking into this and we have a call into Gwen at UAF. The years associated with the drilling from "Division of Energy and Power" is probably old AEA nea APA(Alaska Power Authority). This is an interesting puzzle and I was not aware of this deadline or requirement prior to your email earlier today. It will take us at least a day to close the loop with UAF and come up with a plan,we are researching our library on old documentation. I agree with you, we need to apply for an extension. Patricia—do you know why this was not sent to AEA directly? Do the original documents from 1979 and 1982 mention Alaska Power Authority(I think the name change to AEA happened in 1990)? Sara PS—congratulations on the Acting Commissioner assignment. Sara Fisher-Goad Executive Director Alaska Energy Authority 907-771-3012 (Office) 907-301-0103 (Cell) From: Parady, Fred E (CED) [mailto:fred.parady@alaska.gov] Sent: Wednesday, December 03, 2014 9:36 AM To: Sara Fisher-Goad Cc: Bettis, Patricia K (DOA);Jon Bittner Subject: FW: Pilgrim Springs Geothermal Wells Sara: Attached is a copy of a letter we received regarding DCCED well closure obligations from the Pilgrim Springs Geothermal project from 1979-1982. The operator is listed as DCCED Division of Energy and Power. Did that migrate into AEA, and can you help me run this to ground? We need to come up with an abandonment plan or plan of suspension. We also likely need to apply for an extension. We are working against a 12/15/14 deadline. Thanks for your help. Fred 1 + ` • • From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Good morning Acting Commissioner Parady, I checked the USPS certified return receipt(green card) and the Alaska Department of Commerce, Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy& Power for which the AOGCC has a record. This includes Mary's Igloo-1, PS-3, PS-4 and PS-5. Please note that these are old wellbore schematics contained in a 1983 Woodward-Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase II: Results of Drilling,Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 2 • • • Bettis, Patricia K (DOA) From: Parady, Fred E (CED) Sent: Wednesday, December 03, 2014 9:36 AM To: Fishergoad, Sara L(AIDEA) Cc: Bettis, Patricia K(DOA); Bittner,Jon S (CED) Subject: FW: Pilgrim Springs Geothermal Wells Attachments: MI-1.pdf; PS-3 Wellbore schematic.pdf; PS-4 Wellbore schematic.pdf; PS-5 Wellbore schematic.pdf; Pilgrim Springs Geothermal Wells.pdf Sara: Attached is a copy of a letter we received regarding DCCED well closure obligations from the Pilgrim Springs Geothermal project from 1979-1982. The operator is listed as DCCED Division of Energy and Power. Did that migrate into AEA, and can you help me run this to ground? We need to come up with an abandonment plan or plan of suspension. We also likely need to apply for an extension. We are working against a 12/15/14 deadline. Thanks for your help. Fred From: Bettis, Patricia K(DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Good morning Acting Commissioner Parady, I checked the USPS certified return receipt (green card) and the Alaska Department of Commerce,Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy& Power for which the AOGCC has a record. This includes Mary's Igloo-1, PS-3, PS-4 and PS-5. Please note that these are old wellbore schematics contained in a 1983 Woodward-Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase II: Results of Drilling,Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia 1 r • Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage,AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Patricia Bettis at(907)793-1238 or patricia.bettis@ialaska.gov. 2 • • Bettis, Patricia K (DOA) From: Bettis, Patricia K (DOA) Sent: Wednesday, December 03, 2014 9:21 AM To: Parady, Fred E (CED) Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Geothermal Wells Attachments: MI-1.pdf; PS-3 Wellbore schematic.pdf; PS-4 Wellbore schematic.pdf; PS-5 Wellbore schematic.pdf Good morning Acting Commissioner Parady, I checked the USPS certified return receipt (green card) and the Alaska Department of Commerce, Community, and Economic Development received the Pilgrim Springs Geothermal Wells letter dated September 12, 2014 on September 15, 2014. I attached the wellbore schematics for those wells operated by the Division of Energy& Power for which the AOGCC has a record. This includes Mary's Igloo-1, PS-3, PS-4 and PS-5. Please note that these are old wellbore schematics contained in a 1983 Woodward-Clyde Consultants report entitled "Geothermal Energy Development at Pilgrim Springs, Alaska, Phase II: Results of Drilling,Testing and Resource Confirmation" and may not reflect the current conditions of the wells. If you have any further questions, please do not hesitate to call or e-mail me. Regards, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 • S Ashok K.Roy,Ph.D.,CIA,CBA Butrovich Building Vice President for Finance&Administration/CFO 910 Yukon Drive.Suite 208 &Associate Professor o_f Business Administration P.O.Box 755120 Phone:(907)450-8028 ® Fairbanks,AK 99775-5120 Fax: (997)450-8023 akro).@ alaska.edu UNIVERSITY of ALASKA Afanr Traditions One Alaska DATE: April 18,2013 TO: Kit Duke,Associate Vice President Facilities&Land Management FROM: Dr.Ashok Roy ,. C.C.: Connie Hooper,Wei Guo,Myron Dosch&Nikki Pittman SUBJECT: Delegation of Authority-Board of Regents Policy 05.11 Real Property Transactions Pursuant to Board of Regents' Polity 05.11 concealing university real property,you are hereby delegated authority to: 1) Approve: a) Disposal Plans; b) Development Plans that do not require Board of Regents approval; c) Development Projects that are expected to result in disbursements of not more than $500,000 in value;and 2) Execute all documents necessary to complete any and all real property transactions on behalf of the University of Alaska, which do not require subordination of the university's interest in real property, and: a) Have been approved by the Board of Regents,individually,or as part of a Development Plan;or b) Are expected to result in receipts or disbursements of not more than$1,000,000 in value. You are responsible for providing advance notice to me of all real property transactions which are expected to result in receipts or disbursements greater than$250,000 in value. No further delegation is permitted without my written approval. This authorization replaces any previous delegation that may have been granted With regard to signatory authority for the execution of real property transactions,other than the acquisition of office and other space leases that are addressed under delegation of procurement authority. This delegation is subject to annual review and approval. 1 acethis de ;• ton in ac : dan'e with its terms: _ 3 i i uke,AVP Fact 'ties&Land Management Date • Kit Duke,AVP FLM UA Facilities and Land Managemei Phone: (907)786-7766 re 1815 Bragaw Street Suite 101 Fax: (907)786-7733 Anchorage,AK 99508-3438 Email: kdukel@alaska.edu Web: www.ualand.com UNIVERSITY of ALASKA Many l raditionr One Alaska MEMORANDUM DATE: January 12,2015 TO: Tina Schimschat,Regional Resource Mai •ger eilities--and\Land Management FROM: Kit Duke,Associate Vice Pi-sidentom_ i /► , SUBJECT: Limited Delegation of Authority During my absence from the office on January 13,2015 through January 22,2015 you are hereby delegated the authority to act on my behalf and shall have signatory authority for all matters pertaining to the Statewide Office of Facilities and Land Management including, but not limited to, budget, purchasing, procurement,travel and personnel with the following exceptions: 1. This delegation does not extend to the execution of documents related to the transfer of acquisition of real property interests. 2. This delegation does not extend to procurement authority under AS 36.30. 3. This delegation does not extend to execution of documents related to your own travel or to out-of- state travel for Facilities and Land Management staff. This authorization replaces any previous delegation that may have been granted with regard to signatory authority for matters pertaining to the Statewide Office of Facilities and Land Management as described above.My expectation is that if you have any questions or concerns with regards to any matter pertaining to the Statewide Office of Facilities and Land Management that you will contact me such that we may discuss the issues and resolve your concerns.Please sign below,retain the original and return a copy to me. I accept this delegation in accordance with its terms: bry- ,7, , (Tina Schimschat,Regional Resource Manager) Date • • REGENTS' POLICY PART V—FINANCE AND BUSINESS MANAGEMENT Chapter 05.11—Real Property P05.11.010. Purpose and Scope. A. This chapter establishes guidelines for the prudent management, including trust management, and use of all university real property. B. Except as provided in C. of this section, this policy applies to all real property owned by the university or in which the university has a substantial beneficial interest. C. This policy does not apply to university acquisitions of certain space leasehold interests that are administered in accordance with university regulation relating to procurement or to the development of educational facilities. Any third party use of such facilities is subject to this chapter. (06-08-06) P05.11.020.Definitions. In this chapter,unless the context requires otherwise, A. "development plan" means a brief, general description of the major actions to be taken by or on behalf of the university as part of a development project, to include location, type of development, approximate acreage, and property map, and any amendments to the development plan. B. "development project" means a substantial, purposeful alteration of investment property. "Development project" includes activities occurring on investment property such as subdivision and related construction activities; commercial timber harvest, other than to clear the land or for personal use; materials extraction for commercial purposes; oil and gas leasing, exploration or development; mining leasing, exploration or development; or construction of significant structures, not including repairs, maintenance, expansion, or upgrade which does not materially change the essential character of the structure. "Development project" does not include; the grant of an easement or right-of-way or related construction activities; the development of educational facilities; activities to enhance the value of investment property where such activities are minor or incidental to the development of investment property such as clearing land, investigating soils, incidental filling, drilling water wells, constructing driveways, installing utilities, landscaping, or minor construction; and environmental remediation or other actions specifically required by government agencies. C. "disposal plan" means a brief, general description including location, acreage, property map, minimum price and the terms and conditions of the disposal, if available, of the real property for which a sale, lease, exchange or transfer of interest, excluding easements and rights-of-way, is proposed by the university. 05.11 1 Real Property • • D. "educational facilities" means campus facilities, buildings, improvements, fixtures and major equipment items situated on educational property. E. "educational property" means all university real property designated for education, research, related support, or administrative purposes. F. "investment property" means all university real property not designated as educational property. G. "trust land" means all land and interests in land directly or indirectly acquired in connection with federal grants under the March 4, 1915 and January 29, 1929 Acts of Congress, or otherwise received by or granted to the board for purposes of funding the land-grant endowment established pursuant to the 1929 Act of Congress and AS 14.40.400. For purposes of this definition, "indirectly acquired" land and interests in land include replacement land acquired from the State of Alaska and land exchanged for trust land. The Board of Regents, as a constitutionally created instrumentality of the State of Alaska, has been named by the legislature as trustee and holds such land in trust for the exclusive benefit of the university. H. "university real property" means all land and interests in land of any kind or nature, including all appurtenances, where title is held by either the board or the university, whether acquired through purchase, grant, gift, exchange, or other means. (09-19-14) P05.11.030. Fiduciary Responsibility. A. The board affirms its fiduciary responsibility to prudently manage all university real property for the exclusive benefit of the university, subject to restrictions imposed by law, conveyance documents or gift instruments. B. All trust land shall be managed in accordance with sound trust management principles, consistent with the specific fiduciary duties and legal obligations applicable to such land. The chief finance officer is charged with the responsibility of managing trust land in a manner consistent with the fiduciary duties and legal obligations of the board, and shall be directly accountable to the board for the management of such land. (06-08-06) P05.11.040. Classification of Real Property. The chief finance officer shall designate which university real property parcels will be managed as investment property and which will be managed as educational property. Such designations will not preclude the compatible use of such university real property parcels for both educational and investment purposes. The president will resolve any disputes regarding classification of properties for investment or educational purposes. (06-08-06) 05.11 2 Real Property • • P05.11.041.Plans and Reports for University Real Property. The Office of Land Management shall: A. develop, maintain, and periodically update a general strategic plan for the comprehensive management and development of investment property that includes a statement of the goals and objectives to be accomplished; B. prepare and publish proposed development plans that describe development projects being considered for university real property; C. prepare and publish proposed disposal plans that describe university real property parcels being considered for disposal by sale, lease, exchange or transfer of interest; and D. prepare an annual report for the board that contains a summary of the financial performance of the university's land management operations for the prior fiscal year including a summary of receipts, land sales and acquisitions, and land-grant endowment trust fund balances. The report shall distinguish between receipts from trust land and from all other university real property. (09-19-14) P05.11.042.Development Plan and Disposal Plan Notice Requirements. The Office of Land Management shall provide public notice and seek public comment prior to approval of development plans and disposal plans. Notice shall be provided not less than 30 days before the proposed action. (09-19-14) P05.11.044. Fair Market Value and Other Considerations. In exercising its fiduciary responsibility, the board must administer university real property for the exclusive benefit of the university. In the absence of conflict with the board's fiduciary duties and responsibilities, the administration will consider the following principles in managing and developing university real property: A. Fair Market Value. Disposals of university real property interests shall be at not less than fair market value, and acquisitions of real property or interests shall be at not more than fair market value, unless a direct and substantial benefit to the university can be documented, such as when adjacent university property will become more accessible, marketable, or valuable due to increased availability of utilities or access, or when the transaction offers other tangible benefits to the university. Reasonable fees may be established for routine transactions such as permits and temporary uses of university real property. 05.11 3 Real Property • • B. Economic Feasibility. Development projects shall not be undertaken unless the estimated return exceeds the estimated cost of development in an amount commensurate with the risk involved or the project will position the university to benefit from future opportunities. C. Legally and Environmentally Sound Development. University real property shall be developed consistent with local zoning and platting ordinances and in an environmentally responsible manner, consistent with applicable environmental laws and regulations, including those governing wetlands, water and wastewater, forests,wildlife and habitat, and the coastal zone. D. Jobs for Alaskans. To the extent economically feasible and prudent, development projects will provide an opportunity for the creation of jobs for Alaskans by encouraging development of in-state value-added industries. E. Access Through University Real Property. Subject to receipt of acceptable indemnification or tort immunity, the chief finance officer shall: 1. recognize, or provide alternative access for, RS 2477 rights-of-way and existing state-identified historic trails that cross university real property; and 2. consider the grant of access easements and rights-of-way at fair market value, including any diminution of value, provided such easements and rights-of-way do not interfere with the ability to develop or use such real property or other university real property. F. Reasonable Public Uses of University Real Property. To the extent practicable, the university shall permit reasonable activities of the public on university real property that do not interfere with the university's use or the management of such real property. G. Compatible Research and Educational Uses of Investment Property. Investment property shall be made available to faculty and staff for research and educational purposes provided such use is compatible with development plans and disposal plans and approved by the chief finance officer. Academic units will be responsible for all costs and liabilities associated with such research/educational use. (09-19-14) 05.11 4 Real Property • S P05.11.050. Real Property Acquisitions. A. Campus Land Acquisitions. In order to provide an adequate land base to support current and future campus programs, the chief finance officer shall pursue strategic land acquisitions that meet the goals of the university's educational mission. To facilitate such real property acquisitions, the chief finance officer shall consider relevant campus land acquisition plans, as approved by the board as part of campus master plans. B. Federal and State Land Grants. The board will seek to acquire additional real property through state and federal grants in order to rectify inequities in the land grants to the State of Alaska compared to other states for their universities. When selecting new grant lands, the chief finance officer will attempt to acquire parcels where the selection: 1. is consistent with and enhances the goals of the university's educational mission; 2. is located near communities that have a need for expansion and economic development, provided that such selections do not conflict with selections under the Municipal Entitlements Act; 3. enhances or diversifies the university real property portfolio; or 4. has potential for residential, recreational or commercial development, timber harvesting,materials extraction, oil and gas development or mineral development. C. Other Real Property Acquisitions. The chief finance officer shall consider acquisitions or exchanges of property adjacent to existing university real property, when such property consolidates university real property holdings or enhances the access or development potential of other university real property. When economically feasible, and in the university's best interests, the chief finance officer may acquire or invest in real property that will enhance the university real property portfolio. (09-19-14) P05.11.060. Negotiation, Approval, and Execution of University Real Property Transactions. All university real property transactions and agreements are subject to the following: A. Only individuals authorized under AS 36.30 to execute space leases or in writing by the chief finance officer to negotiate real property transactions may do so on behalf of the university or the board. These real property transactions include, without limitation, any transaction involving lease, sale, cooperative development, right of occupancy, use, permit, license, or contract relating to any real property, or any other real property 05.11 5 Real Property • transaction whether or not similar to the foregoing. All other persons or university officials discussing prospective real property transactions with potential third parties must disclose that they do not have authorization to negotiate or commit the university or the board to any transactions,terms, conditions,or diminution of an interest in real property. B. The board shall approve: 1. strategic plans for the management and development of Investment Property; 2. development plans that consist of: a. subdivisions that will result in the development of 10 or more lots; b. timber sales, unless the president determines the sale will have minimal impact; c. material extractions that are anticipated to result in the sale of 100,000 cubic yards or more of material from a new source; or d. oil and gas leases and mining leases encompassing 5,000 or more acres; 3. development projects that are expected to result in disbursements of$1,000,000 or more in value; 4. real property transactions that have not been approved as part of a development plan and are expected to result in receipts or disbursements of$1,000,000 or more in value; and 5. Real property transactions that require the subordination of an interest in university real property of$1,000,000 or more in value. C. The chief finance officer or the officer's designee shall approve the following: 1. disposal plans; 2. development plans that do not require the approval of the board; 3. development projects that are expected to result in disbursements of not more than $1,000,000 in value; 4. real property transactions that have been approved by the board as part of a development plan or are expected to result in receipts or disbursements of not more than$1,000,000 in value; 5. Real property transactions that require the subordination of an interest in university real property of not more than$1,000,000 in value; and 05.11 6 Real Property S 6. Project cost increases for development projects previously approved by the board, not to exceed 20 percent of the original project cost estimate. D. The chief finance officer is authorized to execute all properly approved real property transactions and may delegate signatory authority to other university officials, provided that any such delegation shall be in writing. Any further delegation must be approved, in writing, by the chief finance officer. (09-19-14) 05.11 7 Real Property Image Project Well History File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. Qis - 1_ Q 9 Well History ile Identifier Organizing(done) Two-sided ❑ Rescan Needed R CAN: OVERSIZED: NOTES: Color Items: ❑ M . Grayscale Items: ogs: ❑ Poor Quality Originals: ❑ Other: ❑ Other: BY: igni Date: I cg...../g. I isl Olf Project Proofing ofBY: Maria Date: Y a.. c1.I I if /s/ Scanning Preparation 3 x 30 = 91° + /a =TOTAL PAGES 1 0 ca., mf (Count does not include cover sheet) BY: Maria Date: t� I /s/ Production Scanning Stage 1 Page Count from Scanned File: /0 3 (Count does include cover eet) Page Count Matches Number in Scannin Prep ration: YES NO BY: ar. Date: IX, 4::;, ` /s/ 10 Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Maria Date: /s/ Stage 2 Additional Well Reports: YES_010 TOTAL PAGES: Digital version appended by: Meredith Michal Date: /s/ Final Page Count: Stage 1 + Stage 2: TOTAL PAGES: Scanning is complete at this point unless rescanning is required. ReScanned BY: Maria Date: /s/ Comments about this file: Quality Checked 7/8/2014 Well History File Cover Page_20140708.doc O a o 9 1 0) O r O O. LL,_ ( O p 0 \ •-• �_ in o O a. E s ' In t COco z (C N Co Co H 9) a 0 M U O Y �` O a) r C C " CO O o z1I m mo c 3 l w r o Lp Q Lin C co U) C ,>,I 0. 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E CO a o 5 0 aI— E M c0 co m 1 � N v a) c (7 O �� c o Q J a O 11 !: 0a Q Z o 0 U 1 I El 2 a1 E Z CO 57 57 57 03 N 7 a+ O a 0 O 0 1 CI ICIN N 01 (71 c6 To :.=.0 :.=.0 E (O (D o 5 p p p p ' E p C 0 0 CO r ~ co NNNN co csi 01 01 01 CO V, aw E a O a1 is71 N N N N N 1 o L ` O U y HN Q mw 1Ce a _ >a)E T. i u) o1 yas Vo 1 zI a A Z t O 0) OU U U UO Qoo_ v o co Cya y cA UU 5) d N ' E a V E IV Oa ' o 2 a Hco E O d dp ' LL o NO ° 0 do a) p E d 0. w www w z 0 0_ 0 V 0 C 0 o ��, c ke, ,,5 STATE k \\�I%%41r. THE / . ec ,.e ` ._.. ., 333 Wc $6:csr h i C>nu (GOVERNOR SEAN .'ARNEI.I, F.richoiage, Ldos o 99501-3572 September 12, 2014 CERTIFIED MAIL- RETURN RECEIPT REQUESTED 7012 3050 0001 4812 6808 (Unaatuq) 7012 3050 0001 4812 6815 (DCED) 7012 3050 0001 4812 6822 (UAF) Matt Ganley, Resources and External Affairs Unaatuq, LLC c/o Bering Straits Native Corporation P.O. Box 1008 Nome,AK 99762 Ms. Susan K. Bell, Commissioner Alaska Department of Commerce, Community, and Economic Development P.O. Box 110800 Juneau,AK 99811-0800 Gwen Holdmann, Director UAF Alaska Center for Energy&Power P.O. Box 755910 Fairbanks,AK 99775-5910 Re: Pilgrim Springs Geothermal Wells Docket No: OTH-14-019 Dear Mr. Ganley, Ms. Bell and Ms. Holdmann: As operators or landowner of record, you are advised that the ten geothermal wells drilled in the area of Pilgrim Springs, Alaska (see attached list) must either be plugged and abandoned in compliance with 20 AAC 25.105 and 20 AAC 25.112 or suspended under 20 AAC 25.110. Alaska Oil and Gas Conservation AOGCC regulations can be found at the following internet address: http://doa.alaska.gov/ogc/Regulations/Reglndex.html. A Sundry application form (Form 10-403) for the submittal of a plan of abandonment or a plan of suspension for a well to the AOGCC can be found at: http://doa.alaska.gov/ogc/forms/forms.html. Please note that each application for Sundry Approval must include a well schematic diagram showing the well's current condition and a well schematic diagram showing proposed downhole well design changes to comply with applicable regulations for plug and abandonment or suspension. Pilgrim Springs Geothermal Wells September 12,2014 Page 2 of 2 If the AOGCC does not receive an acceptable plan and schedule for all ten wells within ninety (90) days of receipt of this letter, the AOGCC will notice a public hearing to determine whether remedial action is necessary with regard to the wells and which entity will bear responsibility for compliance. The applicable University of Alaska, Fairbanks Alaska Center for Energy& Power's (UAF) lease will be expiring soon relative to the PS# 12-1, PS 12-2, PS 12-3 and PS 13-1 wells. Under 20 AAC 25.105, all permitted wells on a property must be properly abandoned before expiration of the operator's rights. Upon expiration of the lease, if these wells are not plugged and abandoned to the satisfaction of the AOGCC, UAF's bond will be forfeited. Forfeiture of the bond will not relieve UAF of responsibility for plugging and abandoning of the wells under AS 31.05. If Unaatuq, LLC desires to take over operatorship of these four wells, a Designation of Operator Form (Form 10-411) must be submitted to and approved by the AOGCC, as provided under 20 AAC 25.020 in addition to filing the bond required by 20 AAC 25.025. Please call Ms. Patricia Bettis at(907) 793-1238 if you have question concerning this matter. Sincerely, i°9(3?-'41( Cathy P Foerster Chair, Commissioner Attachment cc: Kit Duke,Associate Vice President University of Alaska Facilities and Land Management 1815 Bragaw St., Ste. 101 Anchorage,AK 99508 Larry Hartig,Commissioner Department of Environmental Conservation P.O. 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'a 2 ch a a a a * Page 1 of 3 Okland, Howard D (DOA) From: Max Frey [mefrey@alaska.eduj Sent: Wednesday, October 16, 2013 11:44 AM To: Okland, Howard D (DOA) Subject: Re: Pilgrim Springs PS-12-2 Porosity & Permeability Analysis Hi Howard: I'll check in with our USGS contact on this once he is allowed to return to work from his government shutdown mandated furlough. I unfortunately do not have an excel version of the Physical Property Form but I can ask our contact at the USGS about it when he is back to work as well. Best Regards, Max Frey On Fri, Oct 11, 2013 at 9:51 AM, Okland, Howard D (DOA) <howard.okland@alaska.gov> wrote: Max, The"Physical Property Form" document attached to your October 9th email did not make it on your email of September 27th This document is not a Lab Porosity and Permeability Analysis report. I have attached an example of a P & P report from a released well. There is a possibility a P & P analysis was not done on the PS-12-2 samples. If that is the case, please send to us a statement that the P & P analysis was not done. I showed the "Physical Property Form--Density and Magnetic Susceptibility" report to one of our geologists . He wondered if you had it available in digital form (for example, a spreadsheet). If so, would you please send a copy to us? TNX. We appreciate all of your efforts to get this information to us. Howard From: Max Frey [mailto:mefreyCa�alaska.edu] 10/16/2013 , lock Page 2 of 3 Sent: Wednesday, October 09, 2013 3.— PM To: Okland, Howard D (DOA) Subject: Re: Pilgrim Springs PS-12-2 Porosity & Permeability Analysis Hi Howard: I'm glad you were able to get the core samples I sent you. I sent you a short document attached to an email on September 27th that I got from our contact at the USGS (also attached here to this email). Is this what you were looking for in regards to a porosity and permeability report on the core or do you need something more substantial? If you need something more robust, please let me know and I'll track it down for you. I believe our contact at the USGS who was analyzing our core samples is still on furlough due to the federal government shutdown but I will keep trying to get through to him if you need more information. Best Regards, Max Frey On Wed, Oct 9, 2013 at 2:41 PM, Okland, Howard D (DOA) <howard.okland r@alaska.gov> wrote: Max, We received the core chip samples on the 4th of October. Thank you! Folks here are wondering when we will receive the lab porosity and permeability report. Any info? TNX Howard Max Frey Program Assistant 10/16/2013 Page 3 of 3 Alaska Center for Energy and Powe University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks, AK 99775-5910 Office: (907) 474-1143 Fax: (907) 474-5475 Cell: (907) 354-1023 Max Frey Program Assistant Alaska Center for Energy and Power University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks, AK 99775-5910 Office: (907) 474-1143 Fax: (907) 474-5475 Cell: (907) 354-1023 10/16/2013 Page 1 of 1 Okland, Howard D (DOA) From: Max Frey [mefrey@alaska.edu] Sent: Thursday, October 03, 2013 11:13 AM To: Okland, Howard D (DOA) Subject: Core Samples from PS-12-2 Enroute to your Office Hi Howard: I just want to let you know that we recently got the core samples from well PS-12-2 back from the USGS and I just sent them your way yesterday afternoon. You should expect to see them on Friday or Monday. The samples are in two large flat boxes. Best Regards, Max Frey Max Frey Program Assistant Alaska Center for Energy and Power University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks, AK 99775-5910 Office: (907) 474-1143 Fax: (907) 474-5475 Cell: (907) 354-1023 10/4/2013 ck Pilgrim Hot Springs Geothermal Anomaly Assessment--ACEP PS-12-2 Core Section Description Joshua K. Miller The information and discussion provided in this report are derived from an unpublished paper titled "Investigating Low-Temperature Hydrothermal Alteration in Drill Cuttings from Pilgrim Hot Springs,Alaska, Using a Suite of Low Cost Analytical Techniques"authored by Joshua K. Miller, Christian Haselwimmer, and Anupma Prakash. The paper is being published next month in the Geothermal Resources Council Annual Meeting Transactions. The location of the well PS-12-2 is shown in the map of Pilgrim Hot Springs below (Figure 1). The cored section was retrieved last August by the USGS Central Region Research Drilling Team from the depths of 375- 400 m. The core has been analyzed using a host of different methods, including reflectance spectroscopy,thin-section inspection, and methylene blue detection for alteration clays. Other methods are being employed currently at the USGS Menlo Park lab. These different applied techniques help us to understand the varied history of hydrothermal alteration at Pilgrim by analyzing the core mineral composition that has experienced extensive contact with the upwelling geothermal fluids. Detection of certain minerals provide an inference to the past thermo-and chemical-regime of the geothermal system. MON O - O Pilgrim Hot/"- Springs \ �J Alaska\ brjw -' S9 f P5-12-1 ■ PS-12-3 PS-12-2 P5-12-3 �P5-1 rt P5-3 PS-5 I 9.510 Pilgrim Hot SPnngs sem. o %... WO Meters 1 10,000 •Existing Wells •2011-2012 Wells ' 'Extent of thawed ground anomaly L_J Figure 1. Pilgrim Hot Springs, Alaska, located in central Seward Peninsula, with the Pilgrim River in the top half of the map. The-1.5 km2 surface anomaly is outlined in red. The cored section of well PS-12-2, located near the center, is the focus of this discussion. 0Zf1` - tact Thin-section characterization of the core (Fig. 2) indicates the composition is dominantly a biotite schist which has been intruded by pegmatite and diabase dikes (both dikes occurring as very thin veins of—.5 m thick). The biotite schist has been previously mapped as a Precambrian unit(500+million years old)with a range of alteration grade,the low grade being the composition of the schist beneath Pilgrim (Till et al., 2011). The pegmatite is an intrusive igneous rock with large-grained crystals of quartz, biotite, and feldspar(in this case, potassium feldspar). Diabase is typically a dark, volcanic intrusive related to basalt with a largely plagioclase composition. These dikes occur as thin, vein-like rocks in environments experiencing extension and increased heat flow related to volcanic or magmatic activity. The biotite schist, at a macro level, does not appear extensively altered at the margins of the dike contacts. The thin-section images do show alteration that is not immediately observed by hand lens with degradation in the biotites at the dike contact and disseminated pyrite. However, the degree of alteration is minor. Dike intrusion would inherently occur at a very high temperature where the associated minerals are dissolved into a fluid solution or as a molten, magmatic body,that permeates open fractures in the bedrock(biotite schist),then subsequently cools to form these extensive dike networks. The dikes appear to have been emplaced into the schist at a high pressure-high temperature range owing to very little alteration at surface surrounding the dike contacts. Essentially,the heat of the intrusion should have been high enough to create a large alteration halo in the schist, but since it is absent,the schist must have been hot already. This coeval history of schist-dike high temperature interaction agrees with previous identification of other dikes in the Pilgrim River valley and nearby Kigluaik Mountains as Jurassic-aged dikes of varying composition related to a large magmatic event—100 million years ago. This event spurred the formation of the Kigluaik Mountains and altered the pre- existing bedrock(biotite schist being older than 500 million years),the effects of which are seen in the cored section. • y •'r A ;5,' A- 44.' . r : 4t."1:j BI 1 }} -' ., ÷44,. , . !? ' ' �• . ' t. * ® `. ,g � � tis .11 ate illt ii N ... z AshiL,, .., ,9,. 1. ii*,,- tci:- . ,A, lir , -14Z,N. ... .,- Qt. .. ,-. , 1mm 1mm 450 micrometers 1 mm 4 ______ _ ... .... __ _ -4 0 i r e• '41 --_i--,---r:;_,,--- ". - -• . , *• Ns".iI •A,�U- Qlz van r.Mrl _. �•Irif ti t _ 1: M. Hbl ! E j' ).. 2 ti f , RVI �rti 0 - ' «o' EZ1 '{ . ./` D *, Figure 2. Thin section images from PS-12-2 core. All images are under crossed polars. [A] Representative sample of the biotite (Bt)schist. Minor alteration is present in some biotites. [B] Pegmatitic dike with large plagioclase (Plag) and quartz(Qtz). [C]Diabase dike with a 3 mm hornblende (Hbl) crystal cut by two quartz veins with a groundmass of plagioclase. Mineral degradation and the early stages of hornblende replacement by quartz are visible. [D] Contact of the pegmatitc dike and biotite schist. Hornblende, quartz,plagioclase, and biotite are common. The biotites appear altered at the contact. Fine-grained pyrite (only discernible in reflected light) is very common as a replacement mineral along the dike-schist contact. The core also shows extensive pyritization, visible by hand lens, in all of the mentioned rock types throughout the entire core. The pyrite is found in quartz veins, as mineral replacement, and along fractures in the bedrock. This feature is most likely related to past and current hydrothermal alteration as it is ubiquitous in geothermal systems. We investigated the extent and magnitude of hydrothermal alteration in the core from PS-12-2 through the combined use of relatively rapid and low-cost methods that included reflectance spectroscopy, methylene blue analysis, and x-ray diffraction;the results of which are listed in the Table 1 below. Reflectance spectra were used to determine alteration mineral assemblages and absorption feature parameters (e.g. depth and wavelength position of AIOH absorption feature)relevant to hydrothermal alteration style and intensity. Methylene blue analysis was conducted on the more clay-rich drill cuttings to determine the alteration clay (smectite)percent. The outcomes of these analytical techniques were interpreted with reference to existing well lithologic log data to determine zones of hydrothermal alteration and possible pathways of geothermal fluid migration. We aimed to establish correlations between the results of the different analytical methods to facilitate their interpretation and enable extrapolation of the results of methylene blue and XRD analysis. PS-12-2 Core Spectral Analysis FeMgChlorite Phlogopite MgChlorite Montmorillonite Palygorskite Muscovite Illite Muscovite Calcite Siderite Ankerite Biotite Hornblende Table 1. The Spectral Geologist(TSG) spectral analysis mineral results for PS-12-2 core. Results are listed from most abundant to least abundant. The alteration mineral assemblages detected from the above mentioned techniques include white micas and clays dominated by kaolinite, montmorillonite, and illite which are consistent with argillic alteration facies. These minerals are commonly associated with hydrothermal alteration in geothermal systems and have previously been utilized as geothermometers due to the varying stability of different assemblages of these minerals as a function of temperature, depth, fluid and rock chemistry(Browne, 1978; Henley and Ellis, 1983; Reyes, 1990; Gunderson et al., 2000; Harvey and Browne, 2000). The presence of kaolinite indicates an environment of necessary temperature<180°C and low pH conditions required to strip the alkalis from muscovites as well as iron, calcium, and magnesium from montmorillonite through the process of hydrolysis (Guilbert and Park, 1986; Reyes, 1990). Montmorillonite is a common alteration product in many fossil hydrothermal systems and in argillic alteration zones in ore deposits (Guilbert and Park, 1986; Henley and Ellis, 1983). The overall abundance of montmorillonite typically decreases with depth and increasing temperature as it occurs as a shallow feature of most geothermal systems (Browne, 1978; Reyes, 1990). Diagenetic illite is progressively interlayered with montmorillonite with increasing depth and temperature (Jennings and Thompson, 1986). Authigenic illite requires much higher temperatures at 200-220°C for crystallization (Browne, 1978; Henley and Ellis, 1983; Jennings and Thompson, 1986; Reyes, 1990). Chlorite, as a swelling clay, has been described to reach equilibrium at a wide range of temperatures from 125°C-200°C (Browne, 1978; Jennings and Thompson, 1986; Lagat, 2007; Reyes, 1990). The assemblage of these minerals in PS-12-2 suggest a past equilibrium temperature of 125-180°C. Kaolinite, chlorite, and the dominance of montmorillonite over illite constrain the temperature estimation. Although abundant chlorite and a range of carbonates are listed in the TSG results, it is possible the high-temperature late-stage Jurassic dike intrusions into the basement may have had more impact on mineralizing the shallow basement than hydrothermal processes of the Pilgrim geothermal system. The absence of higher temperature alteration above the threshold of interlayered illite-smectite clays in the sediments also supports this hypothesis. Regardless, extensive pyritization and a mineral assemblage that suggests argillic alteration point to a possible temperature- and chemical-regime elevated above current conditions of hydrothermal activity at Pilgrim Hot Springs and could allude to the nature of the heat source. Resolving the past temperature regime into a distinct or multiple distinct thermal events cannot be reliably drawn from the current understanding without further thermochemical studies of the core, sediments, and fluids. In the case of Pilgrim Hot Springs,these methods have enabled the recognition of several diagnostic minerals that resemble argillic alteration which suggests past temperatures up to 180°C. The mineral assemblage of the bedrock core is common for geothermal systems which includes montmorillonite, illite, chlorite, as well as a host of accessory minerals that have been identified in Table 1 (Browne, 1978). Alteration seen in thin-sections of the core is limited to altered biotites at or near dike contacts, pyritization in quartz veins and mineral contacts, and hornblende replacement by quartz in the deeper diabase dike sections. Distinct minerals often seen in high-temperature systems are absent. However,the cored section is only 15 m and represents the shallow basement composition. Deeper depths may reveal a more compelling story of the history of alteration at the site. References Browne, P. R.L., 1978, Hydrothermal alteration in active geothermal fields, Annual review of earth and planetary sciences, v. 6, p. 229-250. Guilbert, J.M., Park, Jr., C.F., 1986, The Geology of Ore Deposits, Waveland Press, Long Grove, Illinois. Gunderson, R., Cumming, W., Astra, D., Harvey, C., 2000, Analysis of Smectite Clays in Geothermal Drill cuttings by The Methylene Blue Method for well site geothermometry and resistivity sounding correlation, Proceedings, World Geothermal Congress, Kyushu- Tohoku, Japan, p. 1175-1181. Harvey, C., Browne, P., 2000, Mixed-Layer Clays in Geothermal Systems and their effectiveness as Mineral Geothermometers, Proceedings World Geothermal Congress 2000, Japan, May 28-June10, 2000. Henley, R.W., Ellis, A.J., 1983, Geothermal systems ancient and modern: a geochemical review, Earth-Science Reviews, v. 19, p. 1-50. Jennings, S., Thompson, G.R., 1986, Diagenesis of Plio-Pleistocene sediments of the Colorado River Delta, Southern California, Journal of Sedimentary Petrology, v. 56, no. 1, p. 89- 98. Lagat, John, 2007, Hydrothermal Alteration Mineralogy in Geothermal fields with case examples from 011karia Domes Geothermal Field, Kenya, Short Course II on Surface Exploration for Geothermal Resources, UNU-GTP and KenGen, Kenya,November 2007. Reyes, Agnes, G., 1990, Petrology of Philippine geothermal systems and the application of alteration mineralogy to their assessment, Journal of Volcanology and Geothermal Research, v. 43, p. 279-309. Till, Alison B., Dumoulin, J. A., Werdon, M. B. Bleick, H. A., 2011, Bedrock Geologic Map of the Seward Peninsula, Alaska, and Accompanying Conodont Data, US Department of the Interior, U. S. Geological Survey. Van Ruitenbeek, Frank J.A., Cudahy, Thomas, Hale, Martin, Van der Meer, Freek D., 2005, Tracing fluid pathways in fossil hydrothermal systems with near-infrared spectroscopy, Geology, v. 33, no. 7, p. 597-600. 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'IL•-i'= Ij 1 I rIy-' ,,t✓ •J'.1 -1.�.., 1:.,•• `# 2 1 LI t I t.. • ` ., ..7'{ e Ill., rS I }3,, . c..74 z-....'.11 ito. ,r 3, 1 2ta d� Ips. �► � 3i 1't-s �- % 1•s _;t~'-<-1 (A '-1 _ tc.,-i3 I. -2,58 'C' Sg"1,0a t'{ ,ski ;s. :3` i1.,-r,T, 14S.,,Ly. -- st-q.0° ~3 ' 1,. 250 •.5.4 ti,1-,.‘3 t65,ci ?Cl• ' n I • v � •i.% lC% •61 477-c'u 4 17,E: c .113 Il .� 9-7. 0,i il=l-sys 0, 4•1Gt —111.,.liC 75- t3 II .'z',2t- 1-''St Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(WaI(Was-Ww)) 7 Cit /013 011 )--( L\ c._' L-2 - 42514 -4 \v4;:-1 ?` vntetax-t,k -i\ -W55 tWr lr.fi. ti, 11^I Li PHYSICAL PROPERTY FORM--DENSITY AND MAGNETIC SUSCEPTIBILITY Project: Name: Date: Weight in air Weight in Weight in air SUSC Sample (a12) (Wa) water (Ww) saturated (10.3 Si) Rock name/Comments (Was) ✓y�'�" ilL--.S'L �r,.a(o 14.1"1 _ ''• • 9s -i � t3( , SL ., s ,e - i3 ,9-t e-41,7 t3i--•• 57- .oma 1:7.gr, 6, 11A 1,1' 11 si.&t3 4-V.. 3.. I;Z ' -op (3irt.e 0,,,j,� ,P.l 4t+.--f-c - g.,.. - {-'c - i� $4. It - 51. 2..c. - N,-,0 ^ z•4=;(.9 - -da-at,.st..brrry- g., It �I .Lg I0.21 a. 24 t--�'� ,Cr b �i ,l;a. 1"?. - I c,i. 12- t). -',.•5-0 ii4•2,5 g7.13w Iit7.4i a. ;yI 1e. 114.7.1t - 43-0L, - ; Ir. ±Z"- Q v3 It q • 1-4 1-3.x4 l I i-• ,1 - 0c,__!, , I 1/7):171.L '14-z.7 - f?.°'r - o. A q ?. t •8.4 1/-at,. re;tu: CC /y��j , �.!�7.z.'5 Ik"• a L 2 Id• -' I - (4__�1 � P - l �tb c3 ., 1 .1 ' 'Lit. 5'5 C iftlJ t61•'1 Iv (sk• is ILL. o _>t_e 1\:2„i/t. ila'l..-Ix� I84. p.r I(o7.ry - a• 41 c it,2.`i 1- t d 4f,t-2 r c,3.�� i 0' 4 0 , rks fj-.La t-G../ 1. Tt jA 2-: a 6,) f;,.. 4.7- '. .5; 22 --- 1 -•}. r i'y.3a i,µ.`, in 2-, 1:.1:(00 At �:(2jii- •'� i 1�.(...,,L. t,c. x J i"� � t (� I3. Ls _ iq•(...(.t, - i.S't i. a;: 145•x•4 ill_2-4 i41,G.1 - . ILi!S.'De> ieq-, IsS (1.3. ,;4- _ ©.-7-"< 0.;Eft cs.g..; - Ie8. s3 '� ^ /2.3s". <.... (32.95 to:. 37 i.qt A 1,.,S.sc. --i-Sb - 20:• $(e .x�i • r,,..s:7G i7.r.4'4? '7.°T.!C..0 1. 58. Ms.° .,-ig. 9 4 .` i,c -ups 1 q 4.,,,,, : .7=i_ 19i. 41 01-.11. 19•}. 1. c1 t14.v; X5.4 114•%.r ,_tet 1tA"`- i t,4.25 � 1.-•-3 jt I, ti• .4 ' ��' i 1,4. yS 43.}C. 114-d / t S'l LL, 17(4,(A5 2-4.3c/ 134.34 0 �-1 NN. ' i Stn.("a 34• xj=Y - '7 33 - p 3'tG �t, .moi 3 �, -? ;3;c. n 41 S �, F i :' '35" 1:3.7 . 'Y9.22 a--1st, o c") I h, . 7 t,. `, t 1•2s 0 1°1'Iv.. :)'t I I:: /3, 1/1.24 C 5, t"5° /y i O W •Ir'i Li.. f 4,....•.1..g ( A71 - G4.sq - r o,; F 3 '1 .� 1 c. i.1. �/.3f i _ _ S° 'AA' II .,, .-7 -, 144.11 1.1 c. t r \\ 1.,,.4. ,1 -- �}=ti.2,=7- '- .t e -/ :.1Y kA S• a c/?.T4 1t-r•'IL 3 1,17. Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(Wa/(Was-Ww)) --t7.--2, - 4.,1- .'6s .‘---,,, ..,,L1,4_61, /u)- IA 0r ' ''. 4.,41- q0-',) roc-_-,.,sn ..v ca..?. PHYSICAL PROPERTY FORM--DENSITY AND MAGNETIC SUSCEPTIBILITY Project: Name: Date: Weight in air Weight in air Weight in SUSC Sample (a12) (Wa) water (Ww) saturated (10 3 SI) Rock name/Comments }} (Was) ✓✓ 41. t-g.� Tb 1 q1i�iC0 Al 4 -2 - Il.ue, q1. 1 5 - C.All (1 . "l/ 01 1. c 2-- t -t.^3 9 1 . 1s , e'i 2 iL94.2n1w c-, 6.-CR.,C.o'•,.a 1.c. \ St iGLi.'1.n '. lG 'S. SST I,:., 5:•0 1'_V ttoI, ' 341 t T. 1;1,3 iec S.0jI 5 (�h,. 4 t1,e,. '',..S.. lw? 1,3 iL 2. ;, Q,7; 2.- j. ,nit, [IJ ie--2-.0?- 1� Z. c9- O7-,.;.--i-lc+ A51 33-51 3i-40 I.ctZ 11'-.-'Sr9. 3.5- '.+..A.cl) -.174:i ';'.,-:-.4:', y M co _ Is, s-6, 11314 Lis.A3 S t,r Esc ^r.cS ;:c,/r1 G r. '.{✓ _ 51 C' . to Ff. Tc 1.1x1 AR 31i0i - S4.11- 51, s_ - r-4-C"o 11,01 V-4.11- P4. '4r5 o• 01' A.‘,. ., c>.5:t L1,.5'I it 3.s''....- 1._1,13r I... $ • (., 41,, :b 3.d,.- - I. 3 S • t0:"1 s . t,t,•It it -6S- I,4q �n ��l -1-.1.s . ° .b� I. S� 2-I t,(.:,(i !Z �.5 - I. 5 1, 40, 9 --174-i __ 0.P. 2 ":44,,,:,4 ti 9, 3.. I. 5.- '7, 4C.,.V.4- - i .mak t,yT tip•�5 -7 .c,(.. 11 °,47 ,.1.4.1:-. .- ...Lift- Ru_v --- '.4 11Z rc 6.t,1 t AV, til•Lv -- 4,.i, '.;, 172-t r- -- v•?_3 r_.0 9-c ?&• iV 0/,).4fCI till -"r:C.- 1'1G.Y P _ +'1, 1'I„ j c. t 11, :20 I.1, it 12.0•i S' •--1-i !� -A:7, i a� J 1. v•-2_;,...57 _ .4.>' end v.:,,,-..,i in."-JG :s?�c vs efl 0.4,4 ('1.1- `s .';'i• .9- 124- s 9 '3- 51 i s,,t:{h'') . , 2-'4" 4',: � ; - P `i•Z ,- A. 1.t } ' '-, <-i.94 6e- ;S'" t I ZI iy [Y. 1,1. i i0'4.Lr? •�, 4I ,.- 44 iL`-, c? 11,1,JZ fe •t7V "T 32.r 0. fJa iW y'f,. -' i L.2a i:.s(. L7,6 (5-7.3:3 .3 j3. 1w,: X10 1.-i. -3 itnt.7-'G , 5;.i•x r-L2'? (:-9.25 -- .r-o. 2-S- - 124r$T• 1• I 9 I2ti• 7fcd EJgo. ' c, i -t,., �t 2,$) ,} IA,-i-'-i / I• .7 1 6.3- tot ac.-..4-4, _V'.`?..JA ..1: .�llh,' J ii, A'2., - (,5.., 7- q7, ../)1 - V-4. 6,q. __ 6,, ':-.LI -It, '7c C.-2.• 6_1 ei..u•.v.•'t, Ic-;.t.L C.v.,- .a'3 t..t. WI I.?t-, - ,2 y3 e. la's,:. t • t,r..c - iUxy,.31 -14...,, ID 5L. 1 Lt.'. C'2 t I.sC •q L Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(Wa/(Was-Ww)) (2 ,--1-1. - --,,„- _A.\—ir.\--. s- <, *-)t,-,A) tk I ,tot- iY, el,z, LYi-L-- PHYSICAL PROPERTY FORM--DENSITY AND MAGNETIC SUSCEPTIBILITY Project: Name: Date: Weight in air Weight in air Weight in SUSC Sample (a12) (Wa) water (Ww) saturated (�p 3 SI) Rock name/Comments • (Was) - h-/>\ t2't.'t - . - $a ,1 - 1-451-45-.3,1_.3• r bac i:-t•`i{r p. S• t21---.31- e. q1t - r $0 w77 5-i, 17" In ,df ,. I,4., 23 G41,ifc 1-6.J3 1.01 43) 3� - 2 - &,k, 1-.4 _ 1. r, .3 - I.C ! 1-1.f.:7 Lr'''5 ' "`�5 i,1.---tV 14 `"-,C7 (=°- C.3 • --41- t (, • ft 1.4-(0 1-5-.-41 lc--i ro ro-1..t ki C r,rt II` -t10% fizt> S t,. {-c r A33 .m . I6 - 4.i. � - 4-r.-:./.4St".b''i", . t. -,u6 SI -19Isl., li sp. 3 -24. tum; -- g t. 0 - t-1.;s. 1� i -�-, c,3 �;. �� i--13,. hi t ,` I. I. rt�7 .4:1:5t u ("1-4.) .y, 1 IW Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(Wa/(Was-Ww)) ps -- 2'2 i2�, .- I.2t'ik ",, ��, �r (=, 1 ,\s-1 _ tl o,. laL�o.ts L (._. iso,,,;) PHYSICAL PROPERTY FORM--DENSITY AND MAGNETIC SUSCEPTIBILITY Project: Av.. _ ,l, ,.• Name: Date: j?''\�/ `3 Weight in air Weight in Weight in air SUSC Sample (a12) (Wa) water (Ww) saturated (1�_3 Si) Rock name/Comments (Was) lc.l.".f.,./(o i 3G ,>1 V�,=} tZ. =� O. f"21 i3G .s1 _ 64,�f- _ore 6, i14f - S� 5ro 17i .j - 0 ,,3-3 - ti Sr. S& i3l.•.1 . 0. “td; 11S1 --1 d> ,7;!5'.1 2 lb T141-3 6 - q.9 •w '6 'I • v - :14.cp4; 0- ,4-5-- , tdt=7,10 1-). I °. Lob c,.,(.d 'P : » w1r„t :3)-,•('. ! 2-1 i q a, lC 12. i 5� .d 3 0 1�6 71 t4 =-, P-' la,iD ico () 0 ;i64 ltd l }=,, E$ ,(1,.. ,•14, i '2,(,, t •'7 i- il"• . l. - 4s- le - [is,^,,. - { "2-^ - 01-. "-qG 9-s, -24, iit.LS 1,'7.-c to- _ * tfI>.,IYrr 3.4'2. 13 _ Aq ii — '4Z. /(r"S' v'33 s A I., II- 21t.1 5, 34-2.Lri 2,15- 1S-1.1.<14 ;SG-4 ?. �S-�' ISG 2i 3 — 1"..1 I i S.'• �'t - et.411 I .43 G1,.4 I i sa. LI Z t'y "2.- ",' •; ‘42.7...e4 _ 7.-.2-7. 5 p (.1 - (-) 3e 1:7 Y• j4 — i.1'L 2 -: '2. 1-; 1,3•, _ v i42. L1 �'z- `e hic., ^7,2� 3.i 31, 'S'" 31, 3a 2y '2-4-- .T' g3 II.w`; 5,,v�,�a 4-,--_,,,,-1,1s1mij, V', 61 ` ^..'c.' .--` — -s ' i. a _�__.�_y.�{�!.:''. 31,24,- _ L.G.4q, 92.12 _ (...c.,. 447- — 6* , 54- iJ G .A� 11.1 ( !f,G,7-3 c1. 1 a'[ Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(Wa/(Was-Ww)) p3.-1—y Z 61 -1 iG, - t.iinto,Giuck €t -- Gt.(4) PHYSICAL PROPERTY FORM--DENSITY AND MAGNETIC SUSCEPTIBILITY Project: Name: Date: 4/1,1113 Weight in air Weight in Weight in air SUSC Sample (a12) (Wa) water (Ww) saturated (10 s SI) Rock name/Comments (Was) 1 A 3. 5'' III. L*3 i .a r 3- 2A aS:"l-1--tom'- 6 I II i, . Si - ,;I..,,, _ i?-3,9-.. - 3.'39' — tI '-;. cs ftI.c " E-' -4 7.-•4C ti{ .Ir 1is.S(.. i4s• S7 0-x'3.3 ,g"2— i1k- 14 - 'Ic.c _ i-inS-1 -• :r2r,34i - I q q • Ii to S4.- 1 f,Sr o. ,4z--) f(o, 13 `Iii% 6 '1-0,wc i•41 3 ; hoc �Hv %•�� i•�� ,17_ Ii,2.s ?z : > 34. 1LLt.3S ic;,. lz, '..l- S c ,,tb tL, I . t41 ,'- I-4 h 1.. 5I 0. ✓c 13(0 IC c••=- - i,7(r i( -. a 1`,• 44- -_ 15 1 1S .e, 4- X1, 11 '1u, 14 r.4% i'-S'.44 , 'i-1 1`2-5-, 1- ^-IS c3g, 2- 9-4 — �-••) 4 I 1 i 3-7- -444 t:..( 41,41 SD .4 '-2, 7.r ?2 or+- I t(„!, i4- to 77,...,-)-, (ka 3• `.>9 - ?. Iles-1.- lia i Il- s6 L. -2- !v 3. -S4 0. 1$-0 1 I C•�, M. . i 2 --- f, 6 .4(,_•.:,-3- a.-2 A — , 'c A_k 1,...-_,10. :t 2, t3 c . 3 4co,A 4-2. ,t >y. ,tv� F -Hes. f ��:si J� `O 103,2.'3 d. l lv r =�t`7 ;f •. �v i• Gs- )1/-4,r-J9^ 1, t lc 7,.<r✓= `--0"4"``r "{ z ;c7-, t1).%, c (1 . DS 53 21 0. ;,- i;; J.. :+4.33 ta:'. 9. 1 6 1:',3,' It' ,z,•: . o J u9• V.i - i-1--.'l2.-- •-' 0, ivt3 1'1 7 t,c•,..,3 3a 3` (.9.0—''.l. 1,4 F '1 , - — 1,--J -' - ..•s Y•+LJ , Z`_s . .8?. S - :,d-&R- 3 irl -2c, I q .t.)i u1.c'.3 G'1,`>• _ n P)-2_, t;.d.yc 7vrl ,-,Z, -' 1 6.'' C5\- (' O': - &t,c', — o,i,r -(� ITS 11 ,p t:1• s •c SS a. iLL �+ , ^ 11•1�,'� — i1 .51 ,, 1`.4 --9 — 1,-4 i'Aw\o c. \13. 1.7-' i-3.-.-c4 1, 31 r� ',.. .1._ G!, .+dc) 6"A2 , _ .�. ?g v •� - tt:',,,, 10.- ''', '''•' `/ at as •�%r q..c, Grain density: Saturated bulk density: Dry bulk density: (1000 kg/m3)*(Wa/(Wa-Ww)) (1000 kg/m3)*(Was/(Was-Ww)) (1000 kg/m3)*(Wa/(Was-Ww)) RECEWED AcEpSEP 20 2013 Alaska Center for Energy and Power AOGCV September 17, 2013 Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Ms. Bettis: In reference to a request for well name change letter dated August 21, 2013 (attached), UAF would like request that the Alaska Oil and Gas Conservation Commission change the name of the following wells as listed PS-12-2 (API #: 50031200080000, Permit #: 2121080) to PS-12-999 PS-12-3 (API #: 50031200090000, Permit#: 2121090) to PS-12-2 PS-12-9 (API #: 50031200100000, Permit#: 2121260) to PS-12-3 Please contact Max Frey at (907) 474-1143 or at mefrey@alaska.edu if any further action on our end is needed. Thank you again for your consideration in this matter. Best : --:ards Gwen Holdmann Director Alaska Center for Energy and Power Alaska Center for Energy and Power•University of Alaska Fairbanks•814 Alumni Drive•P.O. Box 755910 • Fairbanks,Alaska 99775-5910•Tel: (907)474-5402• Fax: (907)474-5475 Y t., ,, ..., „...,..) ,„,,, ., ACEP AUG 2G 2013 Alaska Center for Energy and Power AoGcc August 21, 2013 Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Ms. Bettis: The University of Alaska Fairbanks (UAF)would like to make a request to change the names of the three temperature gradient wells drilled at Pilgrim Hot Springs, Alaska in the summer of 2012. Currently they are known to the AOGCC as TG-1, PS-12-3, and PS-12-9. UAF would like to request that these well names be changed accordingly: From To TG-1 PS-12-1 P5-12-3 PS-12-2 PS-12-9 P5-12-3 We appreciate you consideration in regards to this issue and we apologize for any confusion it may have caused. Be :.rds, / J wen Holdmann Director Alaska Center for Energy and Power Alaska Center for Energy and Power•University of Alaska Fairbanks•814 Alumni Drive• P.O.Box 755910 • Fairbanks,Alaska 99775-5910•Tel: (907)474-5402•Fax: (907)474-5475 Bettis, Patricia K (DOA) From: Bettis, Patricia K(DOA) Sent: Wednesday, September 18, 2013 1:54 PM To: 'Max Frey' Cc: Schwartz, Guy L (DOA) Subject: Pilgrim Springs Max, Per your request, Plugging and Abandonment of Wells 20 AAC 25.105(a) states "All wells that have been permitted on a property under 20 AAC 25.005 must be abandoned before expiration of the owner's rights [lease] in that property... If the owner is the landowner, all wells that have been permitted on a property by 20 AAC 25.005 must be abandoned within one year following permanent cessation of the operator's ...activity within the field..." Designation of Operator 20 AAC 25.020, "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... The newly designate operator shall furnish a bond and, if required, security as provided for in 20 AAC 25.025." Bonding 20 AAC 25.025(b), "A bond and, if required, security must be in the amount...of not less than $200,000 for a blanket bond covering all of the operator's wells in the state." For more information on bonding, you may contact Jody Colombie with the AOGCC at (907) 793-1221. Forms may be found at the following link: http://doa.alaska.gov/ogc/forms/forms.html. Let me know if you have any other questions. Thanks, Patricia Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Tel: (907) 793-1238 CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and,so that the AOGCC is aware of the mistake in sending it to you, contact Patricia Bettis at(907)793-1238 or patricia.bettis@alaska.gov. 1 Aiasica Center for Energy and Powerd,, �:2 August 21, 2013 Patricia Bettis Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Ms. Bettis: The University of Alaska Fairbanks (UAF) would like to make a request to change the names of the three temperature gradient wells drilled at Pilgrim Hot Springs, Alaska in the summer of 2012. Currently they are known to the AOGCC as TG-1, PS-12-3, and PS-12-9. UAF would like to request that these well names be changed accordingly: From To TG-1 PS-12-1 PS-12-3 PS-12-2 21 2 — 1041 '7'" ),_ 3 2. 8 C\ PS-12-9 PS-12-3 We appreciate you consideration in regards to this issue and we apologize for any confusion it may have caused. Be ..rds, /, wen Holdmann Director Alaska Center for Energy and Power Alaska Center for Energy and Power•University of Alaska Fairbanks•814 Alumni Drive•P.O. Box 755910 • Fairbanks,Alaska 99775-5910•Tel: (907)474-5402• Fax: (907)474-5475 • • w of r,y� THE STATE �w��\\�%- Alaska Oil and Gas "�-w, - �' °ALASKA ��''�- ,-_`� Conservation Commission '. .4 _ _= GOVERNOR SEAN PARNELL 333 West Seventh Avenue gF' Anchorage, Alaska 99501-3572 ALAS Main: 907.279.1433 Fax: 907.276.7542 August 8, 2013 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7009 2250 0004 3911 3415 Gwen Holdmann Director, ACEP University of Alaska Fairbanks P.O. Box 755280 Fairbanks, AK 99755 Re: Pilgrim Springs Wells, Missing Log Data Dear Ms. Holdmann: In 2012, the University of Alaska Fairbanks ACEP drilled three wells in the Pilgrim Springs area: Pilgrim Spring TG-1/PS-12-1 (Permit to Drill No. 212-077), Pilgrim Springs PS-12-3 (Permit to Drill No. 212-109), and Pilgrim Springs PS-12-9 (Permit to Drill No. 212-126). To date, the Alaska Oil and Gas Conservation Commission (AOGCC) has not received all required information for these wells. AOGCC regulation 20 AAC 25.071, Geologic data and logs, requires the operator to submit a sepia and reproduced copy of a complete mud log or a lithology log. A digital image file may substituted for the sepia. A digital data file of all the logs run, composited and preferably in LAS format, is also required. This same regulation also requires a complete set of washed and dried, legibly identified samples of all drill cuttings be submitted. If conventional core was cut, a representative chip sample from each foot recovered is required as well as a lithologic description, a porosity, permeability and fluid analysis report and, if available, photographs of the core. Within 10 business days, please submit this information to the AOGCC. If you have any questions, please contact me at(907) 793-1238 or at Patricia.Bettis@alaska.gov. Sincerely, - - _,,,,,: 14— Patricia Bettis Senior Petroleum Geologist , RECEIVED. JAN 252013 STATE OF ALASKA /�OGCC ALASKA OIL AND GAS CONSERVATION COMMISSION A 1 l.- WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil❑ Gas ❑ SPLUG❑ Other Q Abandoned 411 uspendedE. 1b.Well Class: 20aAnc 25.105 20AAC 25.110 Development ❑ Exploratory Q- GINJ ❑ WINJ❑ WAG❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test❑ 2.Operator Name: 5.Date Comp.,Sus r_..l i 12.Permit to Drill Number: University of Alaska Fairbanks Abend.: 8/_012111 1212-109• 3.Address: 6.Date Spudded: 13.API Number: PO Box 755280,Fairbanks,AK 99775-5280 8/1/2012 50-031-20009-00-00• 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 128'FSL,340'FEL,S.36,T4S,R31W I I<Arh 8/13/2012 1PS-12-3 Top of Productive Horizon: same 3 l blza3 8.KB(ft above MSL): -45ft 15.Field/Pool(s): GL(ft above MSL): -•45ft Total Depth: same 9.Plug Back Depth(MD+TVD): Pilgrim Hot Springs Oft 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface:x - 666209' y-4055048' Zone- S •1294ft Pilgrim Hot Springs TPI: x- y- Zone- 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- y- Zone- N/A Unaatuq LLC 18,Directional Survey: Yes U No U 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) Oft 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: mud logs,induction,resistivity,gamma,caliper,temperature N/A 23. CASING,LINER AND CEMENTING RECORD - ' ' WT.PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASING �. GRADE• TOP BOTTOM TOP BOTTOM HOLE SIZE 'CEMENTING RECORD PULLED 10 3/4 21.2 ppf sch 40 0 10 0 10 121/4 in 10ft 10ft - ' ' '" 6 5/8 18.97 ppf^sch 40 0 204 '0 • - 204 97/8 in "204ft'. Oft . • ` '- 4.5 HW 0 1004 0 1004 5 7/8 in ' 1004ft' Oft 2.19 4,2 ppf BQ 0 1294 0 1294 3 7/8 in ,_' top 160ft Oft " 24.Open to production or injection? Yes ❑ No El 25. TUBING RECORD-N/A •- • ' If Yes,list each interval open(MD+TVD of Top and Bottom;Perforation . SIZE. DEPTH SET(MD) . PACKER SET(MD/TVD) Size and Number): 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. ii Was hydraulic fracturing used during completion? Yes Li No H LIDEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST-N/A Date First Production: Method of Operation(Flowing,gas lift,etc.): Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: .Ratio: Test Period �.► Flow Tubing Casing Press: Calculated •Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity-API(corr): Press. 24-Hour Rate �-► - 28. CORE DATA Conventional Core(s)Acquired? Yes 0 No❑ 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 iithology and presence of oil,gas or water (submit separate sheets with this form,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 MC 25.071. Core from 1249 to 1294 ft RBDMS JAN 2 8 711W eityi Form 10-407 Revised 10/2012 CONTINUED ON REVERSE _ /�Submit original only r- v � •b -✓ / ,,)\ 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top and submit detailed test information per 20 AAC 25.071. Permafrost-Base see cuttings descriptions • Formation at total depth: • 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Alaska Center for Energy and Power • • •• Email:,Wen.holdmann • aiaska.edu, Printed Name: Gwen Hojdmann Title: Director,ACEP,UAF lCl- Signature:�7 . ,_._. �_ Phone: 907-590-4571 Date: 10/17/2012 • 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 lb: 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 TVD for the top and base of permafrost in Box 28. Item 23:Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: 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 30: 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 10/2012 CO N- 0 aa)) 5 k C tl2D A l' C l4 0 os ▪N 13 $ r L) 3 V a) C m 3 E > O0 mc000 0 Ts � 2 c0 't trC7T o 0 C O V 0 co r 'a C 0 CS V' O N CC •y CO `t O cz til= (-) �_ C V 0 N r • d O N O N -0 c �O t0 tO d C 7 'n a) O C cg 0 3 Q ▪, N U . C "ft N C-2 C c� E0E -0 O O C I v N Alaska Center for Energy and Power 2012 Pilgrim Hot Springs Well Drilling Logs Drilling Logs for Pilgrim Hot Springs Wells TG-1,PS-12-3, and PS-12-9 Date Activity description Hours worked Art and Jeff arrive in Nome.Pick up two rental vehicles.Inspect snow conditions on Pilgrim access road(still 5-Jun considerable). 12 6-Jun Working in town on equipment preparation.Load Louie Green's backhoe onto our trailer for transport to PHS to dig snow from access road.Northland barge arrives in Nome. 12 7-Jun Equipment preparation continues.Haul Louie's backhoe and unload at PHS access road intersection. 12 Pick up dump truck at Northland.Start equipment engines in town.Drive to site to check on Louie's progress. 8-Jun Drill crew flies from Denver to Anchorage. 12 Pick up remaining three rental vehicles.Crew arrives in Nome on morning flight.Still working on equipment 9-Jun preparation in Nome.Louie has access road dug to the BLM gravel pit.Begin moving equipment to the pit as it's ready.Get backhoe from Northland. 12 Continue equipment prep in Nome(Geoprobe hydraulics etc).Move backhoe to access road and begin working 10-Jun with Louie to clear snow.Move more equipment to BLM gravel pit. 12 11-Jun Continue equipment prep in Nome.Begin hauling gravel for access road repair.Locate and mark first ten geoprobe sites. 12 Using rented loader,begin mining rock from MINC site at top of Golden Gate and hauling it for access road 12-Jun improvement.Continue work in Nome and moving equipment to BLM gravel pit.Move supplies from Northland to Icy View. 12 13-Jun Move geoprobe to PHS and drive first well to 80 ft.Continue access road repair work,moving equipment to BLM pit,and painting rig in Nome. 12 14-Jun Geoprobe 3 sites.Continue access road repair work.Move more supplies from Northland to Icy View. 12 15-Jun Pick up pipe at Northland and move it,and additonal equipment,to BLM pit.Continue access road work. Geoprobe 2 sites. 13 Finish getting supplies from Northland.Continue access road work and geoprobing.Install new culvert at 16-Jun churchyard springs crossing. 12 Continue road work.Begin moving equipment from BLM pit to PHS runway parking area.Continue geoprobing 17-Jun using 2-pipe method. 12 Continue geoprobe work(plugging and driving with larger points).Move trailers to chuchyard area and begin 18-Jun moving into Nun's Quarters.Continue access road work. 13 19-Jun More geoprobe work and access road work.Move two loads of pipe from Nome to runway staging area. 12 20-Jun Continued geoprobe and access road work.Move two more loads of pipe from Nome to runway staging area. 12 21-Jun Continued geoprobe and access road work.Move loader to BSNC gravel pit on main road to get smaller material.Move pallets of cement and drill mud from Nome to runway staging area. 12 22-Jun Continue geoprobe and access road work using smaller BSNC material.Move drill rig from Nome to runway staging area.Install mast extension and large-diameter tires for improved site access.Waiting on AOGCC permit- 12 Continue geoprobe work.Move loader to BLM pit in anticipation of gaining access to this material on 6/25. 23-Jun Begin rig and pipe pallet construction. 12 BEGIN WORK ON TG-1, PERMIT NO.:212-077 24-Jun Continue geoprobe work.Begin moving equipment into churchyard area in preparation to move to well TG-1. Continue pallet construction etc. 12 25-Jun Geoprobe work and TG-1 preparation continue. 12 26-Jun Geoprobe work and TG-1 preparation continue.Build tripod to use for running geophysical logs in existing wells. 12 27-Jun Continue geoprobe work.Get permission to use BLM"gravel"and begin hauling it for access road improvement. Set up and run gamma log in last year's 5-9 well. 12 28-Jun Continue geoprobe,access road work,and preparation for well TG-1. Run gamma log on last year's S-1 well. 12 Continue geoprobe,access road work,and preparation for well TG-1.Disassemble and move last year's rig pallet 29-Jun from S-1 site to churchyard staging area.Dispose of last year's stored cuttings in S-1 dug sump and move tanks to staging area. 12 30 Jun More geoprobe and access road work.Begin stockpiling road material at landing strip staging area for future use.Repair(weld)PHS entry gate. 12 More geoprobe work.Begin preparing site TG-1(PS-12-1).Haul material in dump trailer for Louie Green to fill 1-Jul and repair trail leading to boat launch area in case we need to dispose of cuttings there.Run gamma log in well MI-1. 12 More geoprobe and moving of road material to runway staging area.Decide to set up rig pallet at PS-12-1 to 2-Jul allow for BOP installation w/o the need to move rig(raise rig on pallet to required height).Run 2-in water lines from boat-launch slough to site and fill tanks with water.Move mudpump and shaker trailer onto site. 12 After finding out that we can drill to 500 ft w/o AOGCC permits,drill and drive 10 ft of 10-in surface casing and 3-Jul finalize site to where we're ready to begin conductor casing drilling in morning.Finish geoprobe work and collect gamma log from well PS-S. 12 4-Jul Drill 10-in hole to 100 ft disposing of liquid waste in sump behind garbage pile.Begin moving road material to build base on which backhoe and work to enlarge sump and dump solids. 12 Alaska Center for Energy and Power 2012 Pilgrim Hot Springs Well Drilling Logs 5-Jul Set and cement 6 5/8-in casing to 100 ft.Clean equipment and bring in new light-weight rotary rods for drilling below casing.Continue working on trash-pile cuttings disposal area. 12 Cut pumping sub from 6-in casing,drill cement out from inside casing,and drill 6-in hole to 290 ft.After tripping 6-Jul out drill steel at end of day,well begins flowing-100 gpm at surface(clay boot around bit"swabbed"the well). Trip in rods to 120 ft and pump drill mud to stop flow.Trip to 220 ft,mix weighted mud and pump.Trip out pipe. 20 7-Jul Trip to bottom and drill to 470 ft.Pull drill pipe from hole. 20 8-Jul Trip to bottom and drill to 500 ft.Let rods stand w/o circulation for 2 hrs then run Kuster log inside pipe. Circulate and trip pipe from hole.Run gamma,caliper,induction,and resistivity logs in open hole. 20 Although we don't have AOGCC permit to drill below 500 ft,decide to hold off on cementing casing at this depth 9-Jul in the hopes that the permit-to-drill will be finalized today.Install knife-valve and 2-in kill lines on 6-in casing. Take geoprobe and pull rods from 2 sites that weren't yet pulled.Receive AOGCC permit at end of day. 20 10-Jul Trip rods to bottom and drill to 730 ft.Pull rods from well. 20 11-Jul Trip rods to bottom and drill to 1000 ft.Circulate and pull rods from well. 20 Trip and flush drill rods to bottom.Circulate and pull rod from hole.Run gamma,caliper,induction,and Kuster 12-Jul temperature logs in open hole.Prepare site and equipment to set and cement HW casing to 1000 ft.Run casing to 450 ft. 20 13-Jul Finish running casing to 1000 ft and circulate.Mix and pump geolite cement thru casing to surface.....big mess but get it done.Clean equipment and site as much as possible. 22 14-Jul Trip in drill pipe with 3 7/8-in bit and tag cement at 600 ft.Drill out cement to 990 ft leaving 10 ft in bottom. Flush well and fill with water.Trip pipe,install valve at surface,and clean equipment and site. 20 July 15-July 25 Crew returns to Denver for break.Jeff remains in Nome to take care of BOP-related and other issues(60 total hrs worked). 60 26-Jul Crew flies Denver-Nome.Jeff and Don(arrived 7-25)move BOP to Pilgrim.Assist Josh and Charlie in running Kuster in 12-1 well....only get down to 400 ft. 10 27-Jul Install BOP flange on 12-1 and trip steel to well bottom circulating and flushing fluid.Trip pipe and dig out well head for BOP installation 20 Install BOP and system.Trip steel to 200 ft and circulate per test requirements.Pressure system but it leaks. 28-Jul After Ron makes several calls,he opens/closes the bag in quick succession.Discover that we don't have the recording unit so test will have to wait until tomorrow. 20 Install pressure recorder and Ron Tate attempts to run test @ 3000 lbs pressure.The bag bursts and hyd fluid 29-Jul runs from the BOP head.Ron takes off and we remove the BOP and all plumbing from the well.Set up to run Kuster log in well.Begin clearing site and hauling rock material to runway. 20 BEGIN WORK ON PS-12-3, PERMIT NO.:212-109 30-Jul Remove all equipment from site and install ball valve on well.Begin moving gravel to site 1 f 7.,-3 20 31-Jul Set rig pallet on site and move rig onto pallet.Move rock onto access trail and lay tundra mats over the rock. Move equipment on site.Install 2-in water hose from slough to site and set up and fill water storage tanks. 20 1-Aug Set and cement 10-in surface casing.Drilled 9 7/8-in hole to 125 ft. 20 2-Aug Drill 9 7/8-in hole to 204 ft.Set and cement 6-in casing to 204 ft. 20 Pull 10-in casing and cement in large washout hole that was undercutting around the casing.Install 6-in knife 3-Aug valve and drill cement out of 6-in casing to bottom. 20 4-Aug Drill 5 7/8-in hole to 464 ft.Trip pipe at day's end. 20 5-Aug Drill to 754 ft.Trip pipe. 20 6-Aug Intall new bit,trip pipe to bottom and drill to 1004 ft.Trip pipe from hole. 20 Trip to bottom and flush well.Set up for logging and log well to bottom.Run HW casing to 270 ft with cement 7-Aug sub and shoe installed. 20 Trip/wash HW casing to bottom.Mix cement and pump thru HW cement shoe.Shut in casing and begin moving 8-Aug BOP into place. 20 Install BOP flange and set BOP in place.Set up hyd actuator and run preliminary test.Run and record BOP test 9-Aug for AOGCC. 20 Trip 3 7/8-in bit to bottom and drill out aluminum float shoe.Drill to 1024 and conduct formation leak test per 10-Aug AOGCC.Drill to 1078....basement rock at about 1040?Trip bit from hole. 20 Tricone bit is very worn so install 3 7/8-in PDC bit and trip to bottom.Drill to 1223 ft and pull bit back into HW 11-Aug casing. 20 Trip to bottom and drill to 1249 ft...very slow drilling.Circulate well and trip out bit.Get rig set up for wireline 12-Aug coring and trip core rods to 980 ft. 20 Trip core rods to bottom,pump down inner-tube,and core from 1249 ft to 1294 ft thru biotite shist and other 13-Aug metasedimentary basement rock.Fill well with abandonment mud and pull core rods from well. 20 14-Aug Set up for logging and collect geophysical and temperature logs from well.Run capped BQ rods to 1295 ft and fill with water.Begin moving equipment from site. 20 Alaska Center for Energy and Power 2012 Pilgrim Hot Springs Well Drilling Logs BEGIN WORK ON PS-12-9, PERMIT NO.:212-126 Run tremie pipe in annular area to 160 ft and cement top of hole.Remove BOP and flanges.Begin building trail 15-Aug and running water line to site 12-3.Move rig pallet to site. 20 16-Aug Use BSNC skid-steer to begin moving equipment onto 12-3 site.Very soft and muddy.Lay turf mats in worst spots. 20 17-Aug Finish moving equipment and setting up site.Drill and set 5 ft of 10-in surface casing. 20 18-Aug Drill 9 7/8-in hole to 144 ft.Trip out pipe and run geophysical logs. 20 19-Aug Begin running 6-in casing but it stops at 30 ft.Pull casing and ream well to bottom.Trip out and run 6-in casing to 144 ft.Trip tremie to annular bottom and mix and pump cement. 20 20-Aug Well flange to casing,install knife valve,and install diverter system.Trip 5 5/8-in tricone to bottom and drill to 263 ft.Trip pipe from well. 20 21-Aug Install chisel-tooth tricone bit and drill to 423 ft.Very hard drilling in spots.Trip pipe from well. 20 22-Aug Trip pipe to bottom and drill to 723 ft.Pull pipe. 20 23-Aug Trip pipe to bottom w/o problem and drill to 983 ft.Still drilling numerous hard zones. 20 Trip pipe to bottom and monitor mud temp when ciculation starts(145 F max).Drill to 1133 thru varying hard 24-Aug and soft layers.Drills/looks like basement rock at 1083 ft.Trip pipe from well. 20 Trip pipe in hole but have to circulate every 40 ft from 700 ft to 1033 ft then ream to bottom.Drill to 25-Aug 1183 very slow drilling through basement rock.Trip pipe from well. 20 Run steel to 860 ft and ream to bottom.Thin mud and trip rods from well.Begin geophysical logging but caliper 26-Aug tool becomes stuck at 1065 ft.Trip drill steel into hole to try and wash out logging tool but can't get it washed down to that depth.Pull pipe. 20 Run BQ rods with reaming shoe on bottom to 993 ft.Mix and circulate fresh mud from that point but discover rods are stuck when done circulating....still have perfect circ.Decide to leave rods at this depth rather than 27-Aug trying further to retrieve so that we can at least get temp logs to this depth.Further retrieval efforts will likely result in fractured rods and total loss of the well. 20 Cut logging cable.Circulate fluid thru rods.Mix and pump cement thru rods followed by rubber cement plug and 28-Aug 130 gallons fresh water.Begin moving equipment to town. 20 29 Aug Well begins flowing 150-200 gpm hot water from annular area.Run tremie into annular and kill flow with heavy mud.Run tremie to 126 ft,mix and pump cement in annular. 20 DRILLING ACTIVITY SUSPENDED Begin moving equipment from site to runway with skid-steer.Weather conditions are horrible and everything is 30-Aug a total quagmire.Begin moving items to Nome at day's end. 20 Cleaning,packing,moving equipment from site to runway and from runway to Nome.With exception of what 31-Aug will be left in Nome for final P&A of wells next year(PU truck,white trailer,ATV,and ATV trailer)all items are moved to Northland to catch early Oct barge south. 20 1-Sep Continue cleaning,packing and moving.Return skid-steer and ATVs to BSNC. 20 2-Sep Continue cleaning,packing,and moving equipment to Nome. 20 3-Sep Continue cleaning,packing,and moving equipment to Nome. 20 Make final Pilgrim-Nome run with equipment.Finish loading conex box for ACEP,make trash run,turn in rental 4-Sep vehicles,and leave truck,trailer,and ATV at BSNC Icy View yard. 20 5-Sep Crews fly from Nome to Denver.END OF PROJECT. Art and helper return to Nome to rehead logging cable,move equipment to Pilgrim,and collect gamma and Sep 16-Sep 21 equilibrated temperature logs from the 12-3 well. AlIA::: 11E1P1 Alaska Center for Energy and Power PS 12 3 Permit Number : 212 - 109 Contact Information: Gwen Holdmann: gholdman@alaska.edu Max Frey: mefrey@alaska.edu Pilgrim Hot Springs Field Season, 2012 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil❑ Gas ❑ SPLUG ❑ Other 0 Abandoned C uspended Q 1b.Well Class: 20rwC 25.105 20AAC 25.110 Development ❑ Exploratory E GINJ ❑ WINJ❑ WAG❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number: University of Alaska Fairbanks Aband.: 8/16/2012 1212-109 3.Address: 6.Date Spudded: 13.API Number: PO Box 755280,Fairbanks,AK 99775-5280 8/1/2012 50-031-20009-00-00 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 128'FSL,340'FEL,S.36,T4S,R31W 8/13/2012 1PS-12-3 Top of Productive Horizon: same 8.KB(ft above MSL): -45ft 15.Field/Pool(s): GL(ft above MSL): -45ft Total Depth: same 9.Plug Back Depth(MD+TVD): Pilgrim Hot Springs Oft - 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface:x - 666209' y-4055048' Zone- 1294ft Pilgrim Hot Springs TPI: x- y- Zone- 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- y- Zone- N/A Unaatuq LLC 18.Directional Survey: Yes H No U 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) N/A (ft MSL) Oft 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drill/Lateral Top Window MD/TVD: mud logs,induction,resistivity,gamma,caliper,temperature N/A 23. CASING,LINER AND CEMENTING RECORD ; . " "" -" " WT.PER SETTING DEPTH MD SETTING DEPTH TVD ' AMOUNT, CASING FT. GRADE TOP BOTTOM TOP BOTTOM, HOLE SIZE CEMENTING RECORD PULLED 10 3/4 21.2 ppf sch 40 0 10 0 10 12 1/4 in 10ft - • 10ft " 6 5/8 18.97 ppf sch 40 -' 0 - -204 0 - ^ 204 9 7/8 in -204ft". " ' ' - Oft " •"' 4.5 _ HW 0 1004 0 1004 5 7/8 in • 1004ft- - Oft - -- _ 2.19 4.2 ppf BQ 0 1294 0 1294- ' 3 7/8 in , top 160ft •- - Oft - • 24.Open to production or injection? Yes ❑ No ❑✓ 25. TUBING RECORD-N/A -- - If Yes,list each interval open(MD+TVD of Top and Bottom,Perforation SIZE DEPTH SET(MD) " PACKER SET(MD/TVD) Size and Number): , 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. . ."", Was hydraulic fracturing used during completion? Yes LJ No H {;�};,?pj•U iIOR it fi DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED y�'/1!/�/COY' � RECEIVED. nh�I��MN�^-'^"- Nu v U 12012 27. PRODUCTION TEST-N/A Date First Production: Method of Operation(Flowing,gas lift,etc.): AOGCC Date of Test: Hours Tested: Production for Oil-Bbl. Gas MCF: Water-Bbl: Choke Size: . Ratio: Test Period -► Flow Tubing Casing Press: Calculated Oil-Bbl: Gas-MCF: Water-Bbl• Oil Gravity-API(corr): Press. 24-Hour Rate 28. CORE DATA Conventional Core(s)Acquired? Yes E No❑ Sidewall Cores Acquired? Yes❑ No 0 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,if needed).Submit detailed descriptions,core chips,photographs and laboratory analytical results per 20 AAC 25 071. Core from 1249 to 1294 ft RRfMS DEC 10 2012 Form 10-407 Revised 10/2012 CONTINUED ON REVERSE Submit original only 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? Yes ' No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top and submit detailed test information per 20 AAC 25.071. Permafrost-Base see cuttings descriptions • Formation at total depth: 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Alaska Center for Energy and Power Email awen.holdmann(a.alaska.edu, Printed Name: Gwen Holdmann Title: Director,ACEP,UAF Signature: __ �— Phone: 907-590-4577 Date: 10/17/2012 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 lb: 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 23: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 24: 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 27: Method of Operation: Flowing,Gas Lift,Rod Pump,Hydraulic Pump,Submersible,Water Injection,Gas Injection,Shut-in,or Other(explain). Item 28: 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 30: 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 10/2012 • ,,,,,-.1 , •pr , `,' ,- ' '• ,..,... ,0**, ...&' , % -.41011,,,I,;41-!.4 .: , • f, :, „-mitio .. . ,,, 0 .1, - 11111410014.1 i ,,,,,L,,,., ,,- • , ' , •1 t• '1. : *-' * li ''`; • -',1"*-‘) ' 1 -/ . . s " 7 -• -4- •Z' l . ,, .• . A ...' . , • , - , , , ' • 1 i • ' '. 7 .' .* l' i'.1.1 ... N• , .... - ,, - t --- • • -'' , 1 , A . . s • _ _ _ ,., . • ,„, . ,•, i '14*. — ' - '` ' • '' 41 ,P , .,, . • - - - - ,p • ,, • , ,,•1 ..„7,0 r A: N41/4 it ^'t ) • ;, " $ '',",„•• $ ` .- •i''' N ' .. , f° 1 • '` "ar 1 •A''`` ' , ...'". 1 , I s " ,.' . . . , • 1- .1 ' .1 ›,",'',., '. ' =, , i,, 4 .7 . ,....,,,,,,ir,,, ,,, *,,,,,,, A.; , , , , , 1 f ' • ... , !A , „ - , . 1 '` '1"-' -z - • ''''. 11 * - ., ,.. ) ' ,' ,iii , 1 ''‘, • ''',i • •.• ' ' .' ' 1 , t ' -s• i ---. ' . il . \ - tti • , _L.,. 1pf 44 t,-, . . , ' , 4 . ,, ,.. ,,y ...,, -4 Igt•-, !„, ' , ., . / ZO /Z--- 5-Jun Arrive in Nome. Inspect site access road. 6-Jun Working in Nome preparing equipment. Work on access road. 7-Jun Preparing equipment. Working on access road. 8-Jun Preparing equipment. Working on access road. 9-Jun Prepairng and moving equipment. Working on access road. 10-Jun Prepairng and moving equipment. Working on access road. 11-Jun Prepairng and moving equipment. Working on access road. 12-Jun Moving equipment.Working on access road. 13-Jun Moving equipment. Working on access road. Begin geoprobe work. 14-Jun Moving equipment. Working on access road.Continue geoprobe work. 15-Jun Moving equipment. Working on access road. Continue geoprobe work. 16-Jun Moving equipment. Working on access road. Continue geoprobe work. 17-Jun Moving equipment. Working on access road.Continue geoprobe work. 18-Jun Moving equipment. Working on access road. Continue geoprobe work. 19-Jun Moving equipment. Working on access road. Continue geoprobe work. 20-Jun Moving equipment. Working on access road. Continue geoprobe work. 21-Jun Moving equipment.Working on access road.Continue geoprobe work. Moving equipment. Working on access road. Continue geoprobe work. Waiting on PS-12-1 (PWN) 22-Jun AOGCC permit-to-drill 23-Jun Continue access road and geoprobe activities. Begin building rig and drill pipe pallets. 24-Jun Continue access road,geoprobe, and equipment prep activities. 25-Jun Geoprobe activities and equipment prep continue. 26-Jun Geoprobe activities and equipment prep continue. 27-Jun Geoprobe work, access road and equipment prep continue. Run gamma log in existing well S-9. 28-Jun Geoprobe work and PS-12-1 (PWN) preparation continue. Run gamma log in existing well S-1. 29-Jun Geoprobe, access road, and equipment prep continue. 30-Jun Geoprobe, access road, and equipment prep continue. Stockpile trail improvement material. Fix entry gate. Geoprobe work continues. Finally have actual site location and begin PS-12-1 (PWN) site 1-Jul preparation. Improbe cuttings disposal access trail. Collect gamma log from existing well MI-1. 2-Jul Geoprobe and PS-12-1 (PWN) site prep continue. Run water lines. Begin moving equipment on-site. j. �2'" 3-Jul Still waiting on permit-to-drill but are told we can drill to 500 ft w/o it. Set 10 ft conductor casing Ds 1 and finalize site. Finish geoprobe work. Collect gamma log from existing well PS-5. 1 , p11 21 4-Jul Drill 10-in hole to 100 ft. 5-Jul Set and cement 6 5/8-in casing to 100 ft. 6-Jul Install diverter system and drill 6-in hole to 290 ft. 7-Jul Drill 6-in hole to 470 ft. Drill 6-in hole to 500 ft. Collect temp log from inside drill pipe. Remove rods and run geophysical logs 8-Jul in open hole. 9-Jul Standing by for AOGCC permit-to-drill. 10-Jul Get permit-to-drill. Drill 6-in hole to 730 ft. 11-Jul Drill to 1000 ft. 12-Jul Circulate hole and run geophysical logs. Prepare to set and cement HW casing. 13-Jul Run casing to 1000 ft and cement. 14-Jul Drill cement from inside casing to 990 ft. Clean equipment and site. Prepare for break. July 15 On break. July 25 26-Jul Move BOPE from Nome to site. 27-Jul Installing BOPE. 28-Jul Finish installing BOPE and preparing to test. Attempt to run BOP test but hyd bag bursts.Two weeks to get repair parts. Decide to move to next 29-Jul site. 30-Jul Begin moving equipment to PS-12-2 (PWN). C PS /2-3 ) 31-Jul Moving and setting equipment at PS-12-2 (PWN). 1-Aug Set and cement 10-in casing to 10 ft. Drill 9 7/8-in hole to 125 ft. l 3 101 2-Aug Drill 9 7/8-in hole to 204 ft.Set and cement 6-in casing to 204 ft. 2-12- 3-Aug Z3-Aug Install knive valve and diverter. Drill cement from inside 6-in casing. 4-Aug Drill 6-in hole to 464 ft. 5-Aug Drill to 754 ft. 6-Aug Drill to 1004 ft. 7-Aug Clean hole and run geophysical logs. Begin running HW casing. 8-Aug Run HW casing to 1004 ft. Mix and pump cement. Begin moving BOPE into place. 9-Aug Install BOPE. Run and record BOP test for AOGCC. 10-Aug Drill 4-in hole to 1024 ft and perform formation leak test per AOGCC. Drill to 1078 ft. 11-Aug Drill to 1223 ft. 12-Aug Drill to 1249 ft and decide to switch from rotary to wireline core. 13-Aug Core from 1249 to 1294 ft. Trip pipe. Collect geophysical logs. Fill well with abandonment grout and run capped BQ casing to 14-Aug 1294 ft. 15-Aug Cement top 160 ft of annular area. Remove BOPE and begin preparing site PS-12-3 (PWN). 16-Aug Moving equipment to PS-12-3 (PWN). C15 /Z—c( priJ 21 2-- -126 17-Aug Move and set up equipment on PS-12-3 (PWN). Drill and set 5 ft of 10-in surface casing. P57Z-i 18-Aug Drill 10-in hole to 144 ft.Trip pipe and collect geophysical logs. 19-Aug Run 6-in casing to 144 ft and cement. 20-Aug Install knive valve and diverter system. Drill 6-in hole to 263 ft. 21-Aug Drill to 423 ft. 22-Aug Drill to 723 ft. 23-Aug Drill to 983 ft. 24-Aug Drill to 1133 ft. 25-Aug Drill to 1183 ft TD. Attempt to collect geophysical logs but caliper probe becomes stuck at 1065 ft.Attempt to wash 26-Aug free w/o success. 27-Aug Attempt to wash probe free with BQ rods but they become stuck in well at 1040 ft. Abandon probe and pipe recovery attempt. Cut logging cable and cement bottom of BQ rods into 28-Aug place. 29-Aug Mix cement and fill annular space from 160 ft to land surface.Tag cement in BQ at 930 ft. (5 iv 30-Aug Begin moving equipment from site. t 31-Aug Moving equipment from site and on to Nome. 1-Sep Cleaning, packing and moving equipment to Nome. 2-Sep Cleaning, packing and moving equipment to Nome. 3-Sep Cleaning, packing and moving equipment to Nome. 4-Sep Cleaning, packing and moving equipment to Nome. 5-Sep Crew flies home. 16-Sep thru 21- Return to Nome. Rehead logging cable and collect gamma log from PS-12-3 (PWN)to 900 ft. Sep Well name clarification Project well name(PWN) AOGCC well name PS-12-1 TG-1, Permit No.: 212-077 PS-12-2 PS-12-3, Permit No.: 212-109 PS-12-3 PS-12-9, Permit No.: 212-126 N finbO d .J O (N 4.0r. CD - EL � - 14=1' O V r' •MD p (13 V J L^ M r� V cu ✓• 1 •— p a Ea (ism CIJ I,, F : : L lD d e� 4 0 0 0 0 0 0 e-i N M ct LA tD (baa;) Was] OD n _ISEA SEAN PARNELL,GOVERNOR ALASKA OIL AND GAS 333 W 7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 September 8, 2010 Ms. Gwen Holdmann, Director Alaska Center for Energy and Power E-mailed and sent by U. S. Mail University of AIaska PO Box 755910 Fairbanks AK 99775-5910 Dear Ms. Holdmann: The Alaska Oil and Gas Conservation Commission (Commission) has reviewed your August 19, 2010 correspondence to Winton Aubert. Based upon information previously provided and the contents of your correspondence, the Commission understands that 1) the temperature of the geothermal resources at Pilgrim does not exceed 120 Celsius, and 2) the re-entering of the wells is being undertaken solely for the purposes of research, i e., to test the validity of an innovative geothermal exploration technique. As a result of these representations, the Commission will not exercise its jurisdiction at this time. The Commission's decision is based solely on the representations provided to it. Should the geothermal resources be used for any purposes other than the gathering of information, the Commission reserves the right to revisit the issue of its jurisdiction. In addition to the above, your correspondence also indicates your intention to drill "two 500ft gradient holes and two 2500ft confirmation holes ..." Any such holes would fit the Commission's regulatory definition of"well." Consequently, prior to drilling any such holes you will need to recontact the Commission to ascertain whether a permit will be required. If you have any questions, please feel free to contact Mr. Aubert. - ply gor . 4Orman ` .m -loner Schwartz, Guy L (DOA) From: Markus Mager[markus.mager@alaska.edu] Sent: Thursday, December 22, 2011 1:04 PM To: Maunder, Thomas E(DOA) Subject: Re: Geothermal permitting meeting next week in Anchorage Hello Tom, thanks for your email. I know the meeting was kind of last minute but I thought to let you know anyways. The meeting went well and I think DNR, AEA and ACEP now have a better understanding on how the "geothermal dots" connect in the State and what permitting and regulatory needs there are. I'm sure it was not the last dialog between the agencies and hopefully you can join us the next time. Here is the short version of the 2011 wells: They are basically holes that have a pipe in them and we measured temperature. We got some core and bag samples. Here is the long story: We started TG hole drilling in the beginning of August and continue through the middle of September. We selected S9 as our first drill site. We decided to drill the second TG hole at Si based on the characteristics of S9. Before drilling commenced, we walked to the drill location with members of the MINC Board of Directors (President Carlson Tingook, Vice President Richard Komok, and Dora Hughs) as well as Larry Pederson from BSNC to review the mobilization and drilling plan. We used a USGS-owned Atlas Copco CS-1000-P6L drilling rig to drill the two TG holes. The holes were cased with 6-in diameter steel conductor casing to a depth of approximately 33 ft. We failed to continuously core to a depth of 500ft in S9 due to the encountered soil conditions (disaggregated gravel, silt and sand) . We switched to rotary drilling and finished S9. S1 was drilled entirely using rotary drilling due to the expectation that we would encounter the same disaggregated subsurface materials. However, we bagged samples from both holes at regular intervals. A non-screened 2 inch casing was set from total depth to land surface and grouted into place. The casing was filled with water and used to measure subsurface temperatures with a thermal gauge. Both holes will be decommissioned (plugged and abandoned) at the end of the 2012 field season. Water from the Pilgrim River was used as drilling fluid at both sites. If well conditions required, we mixed a bentonite slurry consisting of Quik-Gel (Baroid Industries - NSF certified) , and river water. A natural cellulosic polymer (Quik-Trol, Baroid Industries - NSF certified) was added to the slurry to improve borehole stability or circulation conditions if necessary. Upon reaching land surface, drilling fluid and cuttings flowed from the well bore to a dug sump. The mixture was pumped from the sump over a set of shaker screens, through desanding cones, and into a shaker tank. The solids, removed at the screens and cones, were deposited through a chute and into an above-ground tank. The fluid, cleaned of solids, was re-circulated from the shaker tank down the borehole. So basically just like your standard mineral exploration hole with an additional pipe in them. Let's re-connect next year and we can talk details. I will be back in Fairbanks on January 5th and will give you a call in early January. Best regards and Happy Holidays, Markus 1 On Fri, Dec 16, 2011 at 8:38 AM, Maunder, Thomas E (DOA) <tom.maunder@alaska.gov> wrote: > Markus, > I must apologize for not getting back to you. The Commission is in the midst of an office remodel and "things" are very hectic. How did the meeting go? I look forward to staying in touch as your project advances. > Although AOGCC permits were not needed for your most recent work, is it possible to see some summaries or actual well reports about the work that was accomplished? Is the material in the public domain? > Regards, > Tom Maunder, PE > AOGCC > Original Message > From: Markus Mager [mailto:markus.mager@alaska.edu] > Sent: Friday, December 09, 2011 4:44 PM > To: Maunder, Thomas E (DOA) > Subject: Fwd: Geothermal permitting meeting next week in Anchorage > Hello Tom, > I just left you a voice message. I think it would be great if you > could join us for a geothermal permitting meeting next week in > Anchorage (see email below) . I will send you the detailed information > (time, place) as soon as I have them. I hope you can make it, thanks, > Markus > Forwarded message > From: Markus Mager <markus.mager@alaska.edu> > Date: Fri, Dec 9, 2011 at 4: 11 PM > Subject: Geothermal permitting meeting next week in Anchorage > To: Peter Crimp <PCrimp@aidea.org> > Cc: David Lockard <dlockard@aidea.org>, tom.crafford@alaska.gov, Gwen > Holdmann <gwen.holdmann@alaska.edu> > Hello Peter, > it was good to talk to you today. > DNR's Office of Project Management and Permitting contacted me several > weeks ago regarding permitting, especially geothermal. Tom Crafford > from DNR just called me and offered to fly up to FAI next week to > discuss permitting since he is finalizing a white paper on the topic. > I contacted you today since I want to make sure that AEA stays in the > loop as well. Barbara initiated a state wide discussion on how to > streamline geothermal permitting, which included several meetings of > the geothermal working group with different stakeholders and > permitting agencies. The state wide discussion ended since her bad > accident. I think it is important to keep the discussion alive and I > was wondering if someone from AEA wants to join us for that meeting. > If so, I would be willing to fly down for a day and we all could meet > in Anchorage (under the assumption that Gwen will sign my TA, which I > anticipate) . > Based on Tom's and my schedule I suggest Tuesday the 13th, sometimes > after loam at AEA. Alternatively we could meet at DNR. What do you > think? > Thank you, Markus > -- 2 > Markus Mager > Energy Analyst > Alaska Center for Energy and Power > University of Alaska > Physical Address: 407 Bunnell Bldg > Mailing Address: PO Box 755910 > Fairbanks AK 99775-5880 > Phone (907) 474-1143 > Fax (907) 474-5475 > http://acep.alaska.edu/ > http://energy-alaska.wikidot.com/ > http: //www.akenergynetwork.com/ > -- > Markus Mager > Energy Analyst > Alaska Center for Energy and Power > University of Alaska > Physical Address: 407 Bunnell Bldg > Mailing Address: PO Box 755910 > Fairbanks AK 99775-5880 > Phone (907) 474-1143 > Fax (907) 474-5475 > http://acep.alaska.edu/ > http://energy-alaska.wikidot.com/ > http://www.akenergynetwork.com/ Markus Mager Energy Analyst Alaska Center for Energy and Power University of Alaska Physical Address: 407 Bunnell Bldg Mailing Address: PO Box 755910 Fairbanks AK 99775-5880 Phone (907) 474-1143 Fax (907) 474-5475 http://acep.alaska.edu/ http://energy-alaska.wikidot.com/ http://www.akenergynetwork.com/ 3 Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) Original Message From: Markus Mager [mailto:markus.mager@alaska.edu] Sent: Monday, April 23, 2012 9:30 AM To: Schwartz, Guy L (DOA) Subject: auto-reply RE: Pilgrim Hot Springs Drilling Program I 'm out of the office until April 27th. I will be checking emails regularly. Please contact Gwen Holdmann (gwen.hotdmann@alaska.edu, 590-4577) for time sensitive issues regarding the Pilgrim Hot Springs project and Brent Sheets (bjsheets2@alaska.edu, 474-1194) regarding any other urgent inquiries. Markus Mager Energy Analyst Alaska Center for Energy and Power University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks AK 99775-5910 Phone (907) 474-1143 Fax (907) 474-5475 http: //acep.alaska.edu/ http: //energy-alaska.wikidot.com/ http: //www.akenergynetwork.com/ Markus Mager Energy Analyst Alaska Center for Energy and Power University of Alaska Physical Address: 814 Alumni Drive Mailing Address: PO Box 755910 Fairbanks AK 99775-5910 Phone (907) 474-1143 Fax (907) 474-5475 http://acep.alaska.edu/ http: //www.energy-alaska.com/ http: //www.akenergynetwork.com/ Markus Mager Energy Analyst Alaska Center for Energy and Power University of Alaska Physical Address: 407 Bunnell Bldg Mailing Address: PO Box 755910 Fairbanks AK 99775-5880 Phone (907) 474-1143 Fax (907) 474-5475 http://acep.alaska.edu/ http: //energy-alaska.wikidot.com/ http: //www.akenergynetwork.com/ 2 Schwartz, Guy L (DOA) From: Markus Mager[markus.mager@alaska.edu] Sent: Thursday, February 23, 2012 10:49 AM To: Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Alan Bailey; Bill Rickard Subject: Pilgrim Hot Springs Project Hello Guy and Stephen, We are moving forward with our project at Pilgrim Hot Springs. ACEP contracted with Geothermal Resource Group (GRG) to help us with well design and permitting to meet AOGCC requirements. GRG has extensive experience in Alaska (e.g. Akutan) and working with AOGCC. Alan Bailey (cc'd) is GRG's main project lead on Pilgrim and will probably contact you soon regarding our 2012 drilling application. The list below provides contact information and I 'm looking forward to a good cooperation between AOGCC, GRG and ACEP. Alan Bailey Manager of Engineering 760-341-0186 Office 760-341-9673 Fax 775-304-3253 Cell Steve Davies Sr. Petroleum Geologist Steve's phone: 907-793-1224 AOGCC's receptionist: 907-793-1223 AOGCC's fax: 907-276-7542 AOGCC's website: http://doa.alaska.gov/ogc Guy Schwartz Senior Petroleum Engineer 793-1226 (office) 444-3433 (cell) Thanks you, Markus Markus Mager Energy Analyst Alaska Center for Energy and Power University of Alaska Physical Address: 407 Bunnell Bldg Mailing Address: PO Box 755910 Fairbanks AK 99775-5880 Phone (907) 474-1143 Fax (907) 474-5475 http: //acep.alaska.edu/ http: //energy-alaska.wikidot.com/ http: //www.akenergynetwork.com/ 1 Schwartz, Guy L (DOA) From: Markus Mager[markus.mager@alaska.edu] Sent: Thursday, December 08, 2011 10:09 AM To: Maunder, Thomas E(DOA) Subject: TG holes Pilgrim Hot Springs FYI. . . Forwarded message From: Aubert, Winton G (DOA) <winton.aubert@alaska.gov> Date: Thu, Oct 21, 2010 at 3:08 PM Subject: RE: TG holes Pilgrim Hot Springs To: Markus Mager <markus.mager@alaska.edu> Cc: "Seamount, Dan T (DOA) " <dan.seamount@alaska.gov>, "Norman, John K (DOA) " <john.norman@alaska.gov>, "Foerster, Catherine P (DOA) " <cathy.foerster@alaska.gov> Markus, Thank you for the information on your Pilgrim Hot Springs 2011 drilling program. The Commission understands that the expected bottom hole temperature in your proposed drilling area is in the range of 85 degrees C to 93 degrees C. Based upon this expected temperature, the Commission will not assert jurisdiction at this time, and no Commission permits are necessary for your drilling program. However, should you encounter temperatures that vary significantly from that expected, please contact the Commission at that time for further discussion. Thank you, Winton Aubert AOGCC 907 793-1231 Original Message From: Markus Mager [mailto:markus.mager@alaska.edu] Sent: Thursday, October 21, 2010 11:06 AM To: Aubert, Winton G (DOA) Subject: TG holes Pilgrim Hot Springs Winton, I got your phone message, thanks for the quick response. Here are some information: - we identified the area where we might drill (see attached map) - Task description: Task 3.1 Gradient Hole Drilling Program (planed for 2011 field season) A minimum of two TG holes will be permitted and drilled to an estimated depth of 500 ft to test the conceptual model and further refine the location for the two deeper confirmation holes. These holes will be completed with 1 =.P" iron pipe so that low temperature Kuster gauges can be run inside the iron pipes. Holes which encounter liquid water will be sampled for chemical analysis. Let me know if you need more information, Thanks, Markus 1 Page 1 of 3 Schwartz, Guy L (DOA) From: alanbailey@geothermalresourcegroup.com Sent: Thursday, March 01, 2012 12:51 PM To: Schwartz, Guy L (DOA) Cc: Mary Ohren; Jonathan Hernandez; Davies, Stephen F (DOA); Arthur C Clark Subject: Re: Pilgrim Hot Springs Drilling Procedure Attachments: Husky Core Rods pdf; Geothermal steam from HS-2 DG.jpg, Hot Springs Well Steaming.JPG, Leak Off Test Procedure.docx; TC Geolite @ 180F_206-190.pdf; TC Geolite @ 140F_124- 104.pdf; BOP Testing procedure.docx Guy,here are my responses to the questions: l) Can you forward me the casing and drilling rod specs please. I don't have these in my standard oilfield handbooks. The 6-5/8"conductor appears to be 6'schedule 20/X-40 line pipe. I've attached a set of tables with core tubulars specs from one of the manufacturers. Core guys don't have any standards equivalent to API.but it's all 4130 steel and as such they're all fairly close to what's in the tables. I am going to recommend that they have someone like Weatherford or Davis Lynch manufacture float collars and guideshoes. 2)How does the diverter attach to the 6 5/8"casing? I saw some comments regarding a compression lock in an earlier email. They usually attach with a compression lock,sort of like a Dresser sleeve. They come flanged too,but I think the USGS has the compression style,and this would may be a better choice with limited space below the"mule shoe". What I think they'll need to do is take a weld-neck flange and weld a short stub(1 foot or so)on top for the compression fitting to attach to. 3)What is the DSA mentioned in step 18.1 We may need a double-studded adapter to cross over to the preventer. 1'11 need to review the wellhead setup with the driller once vendors with this small equipment have been tracked down. 4)Can you run me through the max anticipated surface pressure calculation... Is this from a steam table or calculated from BHT and depth? It's from the steam tables. Geochemistry shows that the actual upflow from the reservoir may be as hot as 300 deg F from adepth of 480'. We're in the outflow and there's nothing even close to that temperature,but we're erring on the side of caution. If we found 300-degree fluid,we theoretically might see pressures of around 80 psig at surface. 350-degree fluid might get us up to around 135 psi,like we saw at Akutan.The hot springs around the property are allhydrostatic or slightly sub-hydrostatic, so high artesian pressure doesn't appear to be a concern. 5)When the BOP rams are tested is there a test plug installed or is the casing string tested at same time? Can you give me adetailed procedure for testing assuming pipe rams will be used. Will there be rams for the 2.19"casing too?Are there VBR available to cover the drilling rod as well as casing? We'll probably need to go ahead and test the casing at the same time we test the surface equipment. With a fully-cemented annulus,it will generally test just fine. We'll perform the BOP according to AOGCC's preference—normally a low pressure/high pressure test I believe. I have attached a procedure that I will include in the overall drilling procedure. One problem may be with the Regan Torus,if we end up using it. They're pretty old-fashioned and they don't have a pressure assist like a modem Hydril. The low step test may not hold a nice flat line and the test pressure may have to be increased. As for pipe rams for the BQ casing,I'm doubtful of finding them without having to have them poured. 6)What is the min LOT value that you can safely drill aheadwith(step 30)? There's no indication from a geochemical standpoint of anything really hot(say 35odegrees or above)so I feel we're OK with anything above about 0.5 psi. I will have them test for a wet shoe prior to drilling out,which I will include in the main procedure. I've attached a copy of the LOT procedure. 7)Do you have a choke manifold setup and piping diagram available. Is choke and kill line piping threaded,welded or knockup? I haven't included a choke,only a diverter line. These little holes are normally killed by bull-heading,and we're not expecting to have to circulate out anything non-condensable. The piping on the kill side will be a high pressure hose from the pump and 3/1/2012 Page 2 of 3 \Nil]be threaded. The blow down line will probably he flexible back to ground level then be straight pipe with anchors. I've attached a picture of what we used at Akutan,the steam in the picture was from a 358 degree entry we encountered. It looked pretty dramatic and was noisy as hell,but we killed it with a couple of barrels of cold water,and kept it dead. 8)Do you have to nipple down the HOP before landing and cementing the 2.19" (or 2.36"?)13-rod casing?(step 36) That exposes you to well control issues since well is not hydraulically isolatedyet. We can get around that by taking cement returns through both sides. 1'11 change that in the procedure. 9)1 normally get a cementing detail also for each string. Type cement,sacks,yield,and estimated top of cement. I've attached the lab tests for the last two batches of the pre-bagged blend I recommend. I would use this as a 13.5 ppg blend with 35 or 40%silica flour on the intermediate and long strings. All casing strings are to be cemented back to surface. Alan Bailey Manager ofEngineering Geothermal Resource Group, Inc. alanbailey( geothermalresourcegroup.com 760-341-0186 Office 760-341-9673 Fax 775-304-3253 Cell www.geothermalresourcegroup.com 11$ fathering'IttSffillte NIP TAPPING THE EARTH'S ENERGY The contents of this email message and any attachments are confidential and are intended solely for addressee.The information may also be legally privileged.This transmission is sent in trust,for the sole purpose of delivery to the intended recipient.If you have received this transmission in error,any use,reproduction or dissemination of this transmission is strictly prohibited.If you are not the intended recipient,please immediately notify the sender by reply and delete this message and its attachments,if any. From: "Schwartz, Guy L(DOA)" <guy.schwartz@alaska.gov> Date:Tue, 28 Feb 2012 12:19:53-0900 To:Alan Bailey<alanbailey@geothermalresourcegroup.com> Cc: Mary Ohren<maryohren@geothermalresourcegroup.com>,Jonathan Hernandez <Jonathan@geothermalresourcegroup.com>, "Davies,Stephen F (DOA)" <steve.davies@alaska.gov> Subject: RE: Pilgrim Hot Springs Drilling Procedure Alan, The conference call was very informative this morning. Here are some additional detail questions for you guys on draft procedure that was sent. I usually deal with oilgas rigs so this is a learning process for me. 1) Can you forward me the casing and drilling rod specs please. I don't have these in my standard oilfield handbooks. 2) How does the diverter attach to the 6 5/8"casing ? I saw some comments regarding a compression lock in an earlier email. 3)What is the DSA mentioned in step 18.1 4) Can you run me through the max anticipated surface pressure calculation... Is this from a steam table or calculated from BHT and depth? 5)When the BOP rams are tested is there a test plug installed or is the casing string tested at same time ? Can you give me a detailed procedure for testing assuming pipe rams will be used. Will there be rams for the 2.19" casing too?Are there VBR available to cover the drilling rod as well as casing? 6) What is the min LOT value that you can safely drill ahead with (step 30 )? 7) Do you have a choke manifold setup and piping diagram available. Is choke and kill line piping threaded , welded or knockup ? 8) Do you have to nipple down the BOP before landing and cementing the 2.19" (or 2.36" ?) B-rodcasing? (step 36) That exposes you to well control issues since well is not hydraulically isolated yet. 9) I normally get a cementing detail also for each string. Type cement , sacks , yield , and estimated top of 3/1/2012 Page i of cement. If some of the questions need clarifying give me a call. Regards, Guy Schwartz Senior Petroleum Engineer AOGCC 793-1226 (office) 444-3433 (cell) From: alanbailey@geothermalresourceqroup.com [mailto:alanbailey@geothermalresourcegroup.com] Sent: Friday, February 24, 2012 11:29 AM To: Schwartz, Guy L (DOA) Cc: Mary Ohren; Jonathan Hernandez Subject: Pilgrim Hot Springs Drilling Procedure Hello Guy, I've attached the draft procedure. There are still a couple of items to be fleshed out,such as drilling fluids and testing. I look forward to discussing it with you on Monday. Is 10:00 Anchorage time OK for you? Thank you Alan Bailey Manager of Engineering Geothermal Resource Group, Inc. alanbailey@geothermalresourcegroun.com 760-341-0186 Office 760-341-9673 Fax 775-304-3253 Cell www.geothermalresourcegroup.com x Untitled The contents of this email message and any attachments are confidential and areintended solely for addressee.The information may also be legally privileged_This transmission is sent in trust,for the sole purpose of delivery to theintended recipient.If you have received this transmission in error,any use,reproduction or dissemination of this transmission is strictly prohibited.If you are not the intended recipient,please immediately notify the sender byreply and delete this message and its attachments,if any. 3/1/2012 Notify AOGCC a minimum of 48 hours prior to testing. Examine accumulator using a checklist, ensuring that pressures and volumes are appropriate to the BOPE being tested. Close the wellhead valve and the valves on hlnwdown side valves. Line up the test pump kill/fillup line side of the wellhead. Bring pressure up to 200 psi,then shut in the manual fill-up side valve. Observe pressure, ensuring that pressure holds to within +/- 5% of test pressure for a minimum of S minutes. Open the manual valve on the blowdown side, and observe pressure on the HCR valve, ensuring that pressure holds to within +/- 5% of test pressure for a minimum of S minutes. Close the manual valve on the biwodown, open the manual valve on the fill-up side, side,and bring pressure up to 500 psi. Repeat the steps to ensure that the blowdon side and wellhead valve hold pressure. Bleed off pressure and line up test pump with the blowdown side of the wellhead. Open the manual valve on the fill-up side and test the check valve to 200 and 500 psi as the other valves were tested. Make up the bottom hole assembly, RIH and tag the top of the float collar. Fill pipe and circulate the hole. Shut the preventer Line up the test pump on the fill-up side of the well head. Bring pressure up to 200 psi, observe pressure,ensuring that pressure holds to within +/- 5% of test pressure for a minimum of 5 minutes. Repeat the process at 500 psi. Record all tests with an electronic pressure transducer or Barton chart and submit to AOGCC. • Easy Leak Off Test Procedure Important: Never Test to Greater Than 1.0psifft! Prior to Testing... Drill out the casing shoe and clean out cement below the shoe. Make 1 to 3 feet of new hole.Spot a high viscosity pill with low water loss and 10 ppb micronized cellulose on bottom. Use a sheet of linear graph paper to plot pressure on the vertical axis versus volume of fluid pumped on the horizontal axis. Don't begin this test without graph paper in hand. During the leak off test,graph the volume pumped versus the corresponding pressure. Use a straight edge to connect data points. Record all liquid pumped. In general in drilling geothermal wells the shoe formations are brittle and weak.Therefore it is necessary to find the leak off pressure without breaking down the formation directly beneath the casing shoe. Let's begin... Fill the stack until pressure begins to register on pressure gauge. In this example, we'll use 50 pounds as our starting pressure. Graph your start pressure: 100 so• preu`< 0 .5 1 (3arrels Log your start pressure. After establishing a start pressure,you will begin pumping incremental volumes. All of the volumes will be the same size. In this example, we'll use 1110th of a barrel as our incremental volume. Between each pumping,you will stop and graph the pressure on your graph paper. At first,the pressure vs.volume curve will grow steeper with each pumping: 200 S H N a. 1-00 0 0 .5 1 Barrels The pressure curve grows steeper with each pumping. This is not what we are looking for. Instead,what we are looking for is a consistent increase in pressure with each pumping. So instead of the pressure vs.volume curve growing steeper, it will appear as a consistent slope—a straight line from point to point: 400 .m 300 ti v m h � S 3 CO ti 2.00 100 0 _ 0 .5 1 Barrels The slope becomes consistent. You are now looking for the most important part of the leak off test—you are looking for the slope of the pressure vs. volume slope to become less steep. This is the leak off pressure and the point at which you want to stop pumping fluid: /000 Slope of fine shifts — Don't pump Anymore 500 ` 400 O Q)300 o ae 200 100 0 0 .5 1 Barrels ♦ The slope has shifted. You can see on the example graph that the leak off occurred at the 8th fluid increment or 490 psi. 5'4,e of f4,e skirts . y9n t pt4.41.3 frertfiro' t ti R Leak .100 Off a. y V tcw v 0 •S 3 ra rre i s Leak off! After reaching leak off pressure, the pressure curve should fall off: 500 Ther5 " V �3 400 N N L Q a S 3 300 200 100 0 1 Barrels . ■- ■ The pressure falls off after reaching leak off pressure Sometimes the curve doesn't fall off as neatly as in the illustration above and you have to pump an extra increment or two. The leak off still is the point at which the pressure vs.volume curve peaked 600 H to hal ,r4,0. 4, Sl,ds i5. yore "acre-Y leak oiY P 50O 400 d 3 300 200 100 O Barrels 1 Had to puma a little extra to pet it to roll over. Now it's time to do our calculations. In order to determine the fracture gradient, we must know the following: • True Vertical Depth of the well • Weight in pounds per gallon of the fluid in the wellbore • Leak off pressure. Using this information, we will calculate the fracture gradient using the following formulas: Hydrostatic Pressure=Weight of Fluid in Wellbore (ppg)X 0.052 X TVD Fracture Gradient= (Hydrostatic Pressure of the Fluid + Leak Off Pressure)/True Vertical Depth Equivalent Mud Weight=(Fracture Gradient/0.433)X 8.33 For the sake of this example, we'll use 2000' as the TVD and 9.0 ppg as the weight of the fluid. We have already determined the leak off pressure as being 490 psi. Here are the results of this simulation: Hydrostatic Pressure =9.0 X 0.052 X 2000 =936 psi Fracture Gradient= (936 psi +490 psi)/2000 ft=0.71 psi/ft Equivalent Mud Weight= (0.71/0.433)X 8.33 = 13.66 ppg AfaSt:a C�1.4,1 i, €lie 6-29-10 Preliminary Reconnaissance Trip Report Pilgrim Hot Springs Geothermal Exploration Prepared by:Peter Illig,Alaska Center for Energy and Power, University of Alaska Fairbanks Goals Our preliminary trip to Pilgrim H.S.was intended to locate, map, and determine the status of all 6 wells located at Pilgrim Hot Springs, including those on adjoining MINC land, and to get a general feel for stable ground in the area and potential challenges associated with ground-based surveys planned for later this summer. Notes on Geographic Coordinates When acquiring GPS points for this project,we determined it would be best to use Universal Transverse Mercator(UTM)as normal distances between lat long lines are distorted due to the high latitude arctic location of the site. UTM provides an easy to use square grid system. For this report I used NAD 1927 Alaska (5003),and the units are in meters. Please make sure that when using coordinates in the area to use this coordinate system. Site Overview Pilgrim Hot Springs is road accessible, although the last mile or so is in bad shape.There is a fair amount of stable ground in the surrounding area, and it seems possible to access all 6 existing wells with equipment needed to replace the wellheads without the aid of helicopter during appropriate times of the year.There are numerous historic buildings, including the church,dominating the north section of the area.To the south is the MI-1 (see figure 7),with the Mary's Igloo well being furthest west. Well Descriptions We were able to locate all 6 wells during the trip,and have provided current descriptions of their condition below,with images from the wellheads included in Figures 1-6. Figure 7 shows the relative locations of all the wells. My colleague, Dan Brotherton, is preparing a plan to refit wellheads for all but one or two of these wells so they can be accessed to collect additional data.We have located the original well completion diagrams and other critical information related to the original drilling program in the report'Results of Drilling,Testing, and Resource Confirmation—Geothermal Energy Development at Pilgrim Hot Springs,Alaska' prepared by Woodward-Clyde Consultants in 1983.This report will be very helpful in developing a plan to rework the individual wells as needed. PS-1 (0503536mW 7218438mN) This well is located furthest north (closest to the church and nearest the main trail). It may very well be the hottest of the wells and appears to have significant artesian flow as evidenced through the leakages. The wellhead has a thick layer of silicious deposits on the exterior which has capped some of the leaks. This well will need to be refitted for further use. PS-2 (0503477mW 7218374mN) Located SW from PS-1 is PS-2.This well seems to be in fairly good shape,and is marked by a large white PVC tube. It is located close to the ground, and does not seem to be leaking. It does not appear necessary to replace this wellhead,although access with appropriate instrumentation may necessitate retrofitting a 2in valve to the wellhead. PS-3 (0503411mW 7218346mN) West of PS-2 is PS-3. It stands out clearly when surveying the area due to its higher wellhead compared to the others. It is also leaking,and will require refitting in order to access the hole.The silicious seal has sealed past cracks in the metal, however there is a constant artesian flow from at least unsealed leak. PS-4 (0503475mW 7218298mN) This is the well which feeds the main hot tub on the property. It leaks considerably,and has a few tubes connected to the wellhead which are presumably used to feed the tub.As with all the wells described thus far, it will require extensive work to be fully operational. PS-5 (0503478mW 7218122mN) PS-5 is the located furthest to the south.Additionally, it is in the best shape of all of the wells.The valves seem to be operational,and there is little rust on the wellhead. Hot water comes out of the valve that we tested which is attached to a garden hose. Getting to the well should not present an issue, however it should be noted there is a lake that was covered with a floating mat of grass that both Dan and I fell into. MI-1 (0503262mW 7218327mN) MI-1 is located furthest west on the field. It was drilled for a hot water source on behalf of Mary's Igloo Native Corporation(MINC). It has extensive damage to the upper part of the well,where a large crack can be seen in the wellhead.The flow is constant from the crack,with much of it being sealed with silica. This wellhead should also be replaced if it is to be accessed in the future for research or development purposes. Conclusions Dan Brotherton will be writing a report suggesting further steps to be taken on the existing wells to make them operational.This report will be shared with the well owners, Unaatuq, LLC and MINC.The next step will be to map culturally sensitive areas(grave sites,historical buildings,etc.)and property boundaries.This task is scheduled for late July or early August. Prior to this trip we will set up a phone conference with all the parties involved to address questions and concerns regarding that trip,to go over schedules, and to develop a backup plan. Figure 7,which is located on the next page,includes all of the well locations and some of the buildings on the property.Once more information on historic sites,and other important cultural features are identified,they will be added to this map.Any future drilling objectives will take all of this information into account so that any effects are minimized. For additional information or questions about this report please contact: Peter Illig,ACEP illig.ak(c gmail.com 907-602-1332 (cell) o: s . ,, r �� ti • 't 4` �.. i' a . . . ,. ti mitor le'(.4 ,) T . ,... Vi. • r` A. k4 - . Figure 1.PS-1 1. ......\646,,, . . ' , • . .. . / ' 't * ; ' • ' '' It, r A ,„ , g‘,. '4Ik ,,i' f / / , . v ' • .. : ,..„, , , r --44 t 8. i �. „. T t .p. , i , -7 ,to /"..).,• oilo 4, 14,, „„op,...7.,, ,, /, gno7,,,--- '', .7:0.'" ...„.00"-,..-'-, • t "It• ' • I or, .. , , ... , . ... . .i. ,, , , (,_ 4.1.%:-" ;;;,..."-,4-4•11, , , .,'. v".!. • ' Y.....::'-. .,-, .co.,- # ,, .•. .ir vi _ , { - 1,t,.„,r0 _ , ,, ....., --4K 4, .' Mt per . --44 k .t Figure 2.PS-2 4 <AO' reg' i40,0,:oloritst, A1/2 4 . . . . 1 ..,, lotr ,.,,, , )(Or!, 1 I Figure 3.PS-3 \ 1/.- , ti t iiii 1 elfir4:411-- -- "4111111111Vii. lb.. - -- r r„..=- "/ptl ^�, �r: , /: jot l�f /.• I j 4 ...itr,„. .._ , t.. ,i, :,.. i. V'''''' �t f7lff 1) tr , 4, ,. 4 40-1, 41,‘ t r' *," , ' ��i ' 41,,, 'AV,:'i_ ►;' r4 1� i, /4(\. Figure 4.PS-4 i r et of 4t.it .. 1.4 �_ . .,4 ' .4:51( le,rr, *q 'or J `1ttk, ri4 ,-y'..,,,' ",atr " ,‘*".'ti , t Figure 5.P5-5 I { ,1 ••,.,V s J +ti f h I / /loitik / / '4 ,744/.• k.` ... o ')--"IA ` ',v ,� .h •� ► iI. 4°4 r.,j T`1 ,f va 4L ••jtti Figure 6.M1-1 P a 4 nee yy � r rt r .","'", I k A. '' , . ( .. .# • 7219000 mN i I r > • ` . �1• °; f �50300U mW s��.a 7 ,.� �'+•Y' r'. �k' ' t ,.. . Jr, s, 4w,0114 „, I .j �S ,t' tr 1 .n, ..t. . , Vit. ,..,,,,,,,.t,;. '-a' .3'..94 iti }S d4 i er rI 11 `f ,,I ' • ti . ;,ref i4 {r u • • , r, . ' f. •..• ,_ ♦/� , l if. Ai ...• Meters Legend 0 165 330 660 990 1,320 N Man Made Structures ,386 VM .9 I Locations v 1 centimeter = 94 meters Figure 7.Map of Pilgrim Hot Spring Well Locations CD a T. ti N m _ h 0 0 v I 00 v N /e.... , in O 01 O O N O N M I v 44 cs1O 4.1 N ‘4.4 alO W k. ob . O O' in N Ai MJ o ...Y , N N '' H Il Iv'n 111) 1 of .L d o CL ....• o + o 0C I a O ax N° a N E 03 d rn H .L Ock o= CID o al N 1p 'a s N lO m r: Co ON 0 CO O I O N 00 K 00W 01 O 00 O N O N O O 8 .-1 ON O O S S S S O 0 00 LC/ Vl M N .-1 cI N .-1 O N (9ISd)aJnssaJd a2e9 r-----1 r--=, , k bL g Alg\ sEA . „ „L \k; j) [-F- �r'' " r N, SEAN PARNELL, GOVERNOR 11 Li ALASKA OIL AND GAS 333 W.7th AVENUE,SUITE 100 CONSERVATION COMMISSION ANCHORAGE,ALASKA 99501-3539 PHONE (907)279-1433 FAX (907)276-7542 Gwen Holdmann Director, ACEP University of Alaska Fairbanks PO Box 755280 Fairbanks, Alaska 99775 Re: Pilgrim Hot Springs, Undefined Geothermal, PS-12-3 University of Alaska Permit No: 212-109 Surface Location: 128' FSL, 340' FEL, S. 36, T4S, R31W Bottomhole Location: 128'FSL, 340' FEL, S. 36, T4S, R31W Dear Ms. Holdmann: Enclosed is the approved application for permit to drill the above referenced exploration well. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. This permit to drill does not exempt you from obtaining additional permits or an approval required by law from other governmental agencies and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the 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 terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, J Cathy . F erster Chair, Commissioner DATED this3 day of August, 2012. cc: Department of Fish & Game, Habitat Section w/o encl. (via e-mail) Department of Environmental Conservation w/o encl. (via e-mail) STATE OF ALASKA AL AOILAND GAS CONSERVATION COMMIS& PERMIT TO DRILL 20 AAC 25 005 1 a Type of Work 1 b Proposed Well Class Development-Oil _ Service- Winj — Single Zone I— lc Specify if well is proposed for Drill ® Rednll Stratigraphic Test Development-Gas _ Service-Supply — Multiple Zone _ Coalbed Gas 111 Gas Hydrates — Re-entry ❑ Exploratory Service- WAG Service-Disp Shale Gas 2 Operator Name 5 Bond Blanket ZI Single Well 11 Well Name and Number University of Alaska Bond No /t)J-7f //!(L:6,c PS-12-3 3 Address P O Box 755280, Fairbanks,AK 99775-5280 6 Proposed Depth q�--(L-12 Field/Pool(s) MD 2500' TVD 25010' Pilgrim Hot Springs 4a Location of Well(Governmental Section) 7 Property Designation(Lease Number) Surface 128'FSL,340'FEL,S 36,T4S,R31W Unaatuq LLC(BSNC) Top of Productive Horizon same 8 Land Use Permit 13 Approximate Spud Date 8/3/12 Total Depth same 9 Acres in Property 14 Distance to Nearest Property 871ft 4b Location of Well(State Base Plane Coordinates-NAD 27) 10 KB Elevation above MSL -45 feet 15 Distance to Nearest Well Open Surface X=666209'Y=4055048' Zone-0) GL Elevation above MSL -45 feet to Same Pool 16 Deviated wells Kickoff depth N/A feet 17 Maximum Anticipated Pressures in prig(see 20 AAC 25 035) -1 Maximum Hole Angle N/A degrees Downhole 1075 @ 2500ft Surface 0 18 Casing Program Specifications Top - Setting Depth - Bottom Cement Quantity,c f or sacks Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Y-s'IL 9 7/8 in 10 3/4 OD 21 2 ppf sch 40 n/a 21 ft 0 0 20 ft 20 ft n/a )4- 9 7/8 in 6 5/8 OD 18 97 ppf sch 40 weldable 200 ft 0 0 200 ft 200 ft Neat cement,60cf 5 7/8 in 4 5 OD HW TFJ 1000ft 0 0 1000ft 1000ft 19 rpgabandcn" "hcntnndp ut It'efe..., 3 7/8 in 2 19 OD 4 2ppf BQ TFJ 2500 ft 0 0 2500ft 2500ft w/150 ft neat cement at surface ==Mr 19 PRESENT WELL CONDITION SUMMARY(To be completed for Redrill and Re-Entry Operations) Total Depth MD(ft) Total Depth TVD(ft) Plugs(measured) Effect Depth MD(ft) Effect Depth TVD(ft) Junk(measured) Casing Length Size Cement Volume MD TVD - Conductor/Structural Surface Intermediate Production - Liner Perforation Depth MD(ft) i Perforation Depth TVD(ft) 20 Attachments Property Plat ❑ BOP Sketch p Drilling Program Fi Time v.Depth Plot Shallow Hazard Analysis Fl Diverter Sketch Seabed Report Drilling Fluid Program 20 AAC 25 050 requirements 21 Verbal Approval Commission Representative Date 22 I hereby certify that the foregoing is true and correct Contact P. Printed Name G W I) 14o t1d mG nn Title illb j ret +b( , A CC.P1 u A F:- Signature ]//`/___z_, Phone 7O7--5.16 -" y 57 T Date 7 -3 I- 12 Commission Use Only Permit to /r API Number. Permit Approval 1^ See cover letter for other Number 2/� <l� 50-(3( L��x tate (!/.... requirements Conditions of approval If box is checked,well may not be used to explore for,test,or produce coalbed methane,gas hydrates,or gas contained in shales 1/SS-0.6ia5,, 36 Tis-I- Samples req'd Yes ffNo E Mud log req'd Yes No H2S measures YesNo Directional svy req'd Yes No ,4I-tee,i f�o! '7' 'Li,/oucQ ii--et Z ,4,-- ZS .. 03S(A)(I) r 2 POVED CMO DATE r ID . : .PR �'BY THE OMMISSIONERNOMISSIN v I it - 3 Y - ORG1NAL RECEIVED AUG o i 2012 vv AOGCC t61 Form 10-401(Revised 7/2009) This permit is valid for 24 months from the date of approval(20 AAC 25.005(g)) Submit in piv ft)/( 1 R _rim Hot Springs Pro,; t 2012 Drilling Plan, Procedure Amendment and Update to the 05/30/2012 application Date Submitted:08/01/2012 Application for: • Permit to Drill Alaska Oil and Gas Conservation Commission (AOGCC) Submitted to: Cathy Foerster Alaska Oil & Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 Submitted by: Gwen Holdmann, Markus Mager Alaska Center for Energy and Power(ACEP) (907)590-4577,gwen.holdmann@alaska.edu (907)474-1143, markus.mager@alaska.edu I. Background &Purpose We submitted two permits to drill applications to the Alaska Oil and Gas Conservation Commission (AOGCC)on 05/30/2012.ACEP received the Permit to Drill Application for TG-1 from the Commission. AOGCC and ACEP agreed to incorporate all of the relevant changes into a new Permit to Drill Application for future wells due to the amount of handwritten corrections and changes to the TG-1 Permit to Drill form and the correspondence regarding TG-1.This should result in a smoother,faster permitting process. ACEP decided to submit six(6) additional Permits to Drill applications in order to cover all the potential sites.The proposed drilling methodology is the same for all the six wells. We ask AOGCC to prioritize the processing of our applications by the following order: - PS-12-2 - PS-12-5 - PS-12-6 - PS-12-3 - PS-12-4 - PS-12-7 Based on our schedule and timing we anticipate to only drill one more deep hole at Pilgrim this summer. The proposed well locations(P5-12-2, P5-12-3, PS-12-4, PS-12-5 and PS-12-7)are all on Pilgrim Hot Springs property located at USGS Bendeleben A-6, Kateel River meridian. Property Owner Unaatuq LLC 110 Front Street,Suite 300 Nome,AK 99762 Matt Ganley, Vice President, Land and Resources (907)443-4314 mganley@beringstraits.com The proposed well PS-12-6 is located on Mary's Igloo Native Corporation (MINC) property. Mary's Igloo Native Corporation (MINC) PO Box 650 Teller,AK 99778 Richard Komok, President (907)642-2308 m_igloo@hotmail.com II. Plan of operations The project team has identified 6 additional drill sites(see Figure 1). Drilling will occur in accordance with Alaska Oil and Gas Conservation Commission (AOGCC) rules and regulations. A detailed drilling plan is attached (attachment 1).We are using an Atlas Copco CS-1000-P6L drilling rig for the drilling operation. Water from the Pilgrim River will be used as drilling fluid at the site. Drilling fluid will consist of straight river water whenever possible. If well conditions require,the project will mix a bentonite slurry consisting of Quik-Gel (Baroid Industries—NSF certified),and river water.A natural cellulosic polymer(Quik-Trol, Baroid Industries—NSF certified)will be added to the slurry to improve borehole stability or circulation conditions if necessary. Quik-Gel is a finely ground, premium-grade, sodium based bentonite, which is commonly used as a drilling fluid.The project expects to use approximately 50,000 gal of water per 2,500ft hole. 2 , sI • rim SjZhjsTt . . , ` 4I C3 lilles ,' F' l4.4.. r ' a r I ' . . .:. ( .............. - TT • k kLandirStrsp Figure 1 -- Drill Sites Ill. Wastewater Discharge Drilling Waste Solids The project drilled two temperature gradient holes in 2011 and solids were handled, sampled and stored accordingly at the site.The samples were tested and passed the standards set by ADEC. Drilling waste solids are still stored at the 2011 drill sites(S1 &S9) in the above ground tanks.They will be disposed in two sumps during the 2012 field season.An 8 ft x 8 ft x 3 ft deep sump will be dug at each of the 2011 drill sites and solids will be transferred from the tank to the sump.Once completed, the sump will be backfilled with the soil that was removed to dig the sump and the project will provide closure confirmation to ADEC for the sump, including: o GPS coordinates for the sump location, and o photographs showing the sump after it is backfilled. 2012 drilling operations and waste handling will be similar to the 2011 execution. Upon reaching land surface, drilling fluid and cuttings will flow from the well bore over a set of shaker screens, through desanding cones,and into a shaker tank.The solids, removed at the screens and cones, will be deposited through a chute and into above-ground holding tanks (Picture 1 and 2).The fluid, cleaned of solids,will be re-circulated from the shaker tank down the borehole. A 1,500-ft, 5 7/8-in diameter hole would generate—282 ft3 of cuttings. After setting and cementing a 4-in casing to 1,500 ft, a 3 7/8-in hole 3 drilled from 1,500-2,500 ft 1 I generate an additional^'82 ft3 of cuttir ach of the project's five . ' storage tanks has a holding capacity of-90 ft3. Solids will be removed from the drilling fluid and contained in above-ground tanks. Any fluid that accumulates in the solids tank during the drilling process will be pumped back into the shaker tank or onto nearby land surfaces.The holding tanks will be emptied once full and the solids will be disposed in a 10ftx 10 ft x 5 ft deep sump. lib #_. z:' aArtte f` '4 - 7 .4 e, i4';,' i y k� , 'err. ....-_.�: 1 r� is ,•, , aCF'a ` `,�..Z• =Bis'- a , Picture 1 Rig and Equipment at 59 in 2011 Yf(Tari 1 'h It ., { ,Y ;-r:.i 'r --1 '-' . .*.. ,,, . , t. 3,4, _..., _ „sm. 4v:,,- , it_., . .--- - . .. - a `'' w '6e s ye.'-s }; j M1 Picture 2 Shaker and Storage Tank with Solids at S9 in 2011 After drilling is completed at the site the sump will be backfilled with the soil that was removed to dig the sump.The project will provide closure confirmation to ADEC for the sump, including: o An estimate of the total volume of drilling waste disposed 4 o GPS coordir for the sump location, and o photographs showing the drilling waste management in operation, and the sump after it is backfilled. Upon completion of the drilling, drill fluid in the borehole and shaker tank will be pumped to the sump where the solids can settle out and remaining fluids will be pumped onto nearby land surfaces. Extreme care will be taken to ensure that the sump locations are not close to any open water bodies.The developed land use agreement with the property owner is in signature stage and reflects the proposed drilling waste handling. We will dispose drilling solids at the Nome landfill if the project is not allowed to dispose them in a sump on site. • IV. Water Withdrawal Location Water will be withdrawn at a rate of 2,500—10,000 gallons per day using a 3-inch centrifugal pump (avg. 20-35 gallons per minute).The maximum amount of water that will be used in 2012 (June to mid- September) is estimated to be 250,000 gallon (Temporary Water Use Authorization TWUP A 2011-30& A2011-125). Our pumping rate during flushing of the well or rotary drilling,the maximum rate will be about 150 gpm. Since fluid is being re-circulated (assuming no circulation loss into formation)the gpm estimate multiplied with the minutes drilled does not equal the amount of fluid used. We are providing a high estimate of usage due to the possibility of circulation loss. If we encounter lost circulation,the pumping rate does equal the fluid use estimate which is the max.of 10,000 gallon/day. The water intake locations and the intake system are shown in Figure 2,3 and 4.We are planning to pump water from the same locations as in 2011 and to use the same system set up.The intake barrel has holes in the side which are covered with 0.04 mesh to prevent fish impregnation (Fish Habitat Permit FH11-III-0052). 5 i y • :` ,. . 4 b1S2, �` i `� ---Atar‘A . . i 1 . . 4 ' : 1 . V- • „,, t .. . , i ' ' '' *'t 1 ll Figure 2 59&51—2011 drill sites and water intake locations ;t 1. A s.f x< a" yr+ -f , Vv t +6 1. fe 4 '• Figure 3 51 water intake Figure 4 59 water intake Water intake location S1 and S9 are on Mary's Igloo Native Corporation (MINC) property located at USGS Bendeleben A-6, Kateel River meridian, Township 4S, Range 30W, Section 31. 6 Property Owner Mary's Igloo Native Corporation (MINC) PO Box 650 Teller,AK 99778 Richard Komok, President (907)642-2308 m_igloo@hotmail.com Thank you for your attention to this updated application. Sincerely, DD� nn G1si✓w '\ €chr & weoln H cman Director,ACEP Attachment 1-proposed drilling methodology Attachment 2-well sketches Attachment 3—stability analysis Attachment 4—six-Permit to Drill—applications Attachment 5—detailed drilling point information 7 Attachment 1 Proposed Pilgrim Springs drilling methodology for deep temperature-gradient wells 1. Set up drilling equipment on site. a. Site size is^ 100 ft x 100 ft i. Minimal site disturbance is anticipated ii. Disturbed top soil will be scraped off with a front-loader and set aside in separate area for use in site reclamation. b. On-site equipment will consist of: i. Atlas-Copco P6L drilling rig set on fabricated wooden structure (12 ft x 20 ft) ii. Drill pipe pallet(10 ft x 30 ft) iii. 600 gallon shaker tank w/sump pump(12 ft x 8 ft) iv. Skid-mounted Gardner-Denver 200 gpm duplex mudpump (12 ft x 8 ft) v. Four 800-gallon drill cuttings holding tanks(8 ft x 6 ft ea) vi. Light tower(8 ft x 6 ft) vii. Storage trailer(15 ft x 8 ft) c. Mud sump dimensions will be 3 ft x 3 ft x 2 ft deep. Drill mud will flow from the well into a short(10-15 ft)dug ditch and into the sump.A 200 gpm sump pump will transfer the mud from the sump to the shaker tank. 2. Mix water-based bentonite drill mud.Additives used will include: a. Quick-Gel high-yield bentonite (hole stability,circulation control,clay-shale control) b. Pac-L and Pac-R powdered cellulose polymer(clay-shale control,water loss,viscosity control) c. Baroid 41 barite weighting material (mud density control) if necessary 3. Pick up 9%.-in tricone bit, drill and drive 10%-in conductor pipe to 10-20 ft as conditions warrant. 4. Drill 9%:-in vertical hole with bentonite mud to 200 ft. a. Condition mud and circulate to clean hole. b. Run caliper log to determine well bore volume. 5. Run 6%-in schedule 40 casing(18.97 lbs/ft)to bottom and cement from bottom up to surface. a. Mix and pump 110%cement based on calculated caliper log volume. b. If cement failed to return to the surface, conduct top job by tagging the top of cement with a 1-in tremie pipe and pumping additional cement through the tremie pipe to bring cement up to the surface 6. Pull 10%-in conductor pipe. 7. Install 6-in ID low-profile full-opening 150 psi, 300°F knife gate valve and diverter head on flanges welded to the 6%-in casing(see attachment A). a. Install port and 2-in 1500 psi valve below the 6-in gate valve for kill line attachment. 8. Install 5%.-in rotary(tricone or PDC) bit and drill to 1,000 ft or until 280°F a. Collect drill cuttings every 10 ft. b. Continuously monitor drill fluid in and out temperature and record every 10 ft. c. If drill fluid teature exceeds 150°F, stop and run Kust nperature log inside drill rods to bottom of well to determine true formation temperatures. d. If borehole temperature of 280°F is encountered, cease drilling, circulate, and remove drill rods from well. 9. Run geophysical and temperature logs (assuming max well temperature is within tool operational limits). a. Geophysical logs run will be natural gamma, resistivity, conductivity, and caliper. Eiscc, c ` ir.e ceci-''v ira, -c: c ten,r eratoi' :cgs or'?u,nec a' I p,c,Ent, c c le'''?llnE1 . ;•t rmi21•E V• lletreer to crili a're c v itl. EOEI_ or tcternpk—ZtLiie moniticr ca_irlf of ti,is CCy't' IidriWrg Goes not continue_ irkser; arc grout EL cosing pet the iC>Ilowing Steps thr: 2 f If drilling continues: 10. Cement 4.5"HW casing in place (100%cement to surface, 0-1000' MD). a. Run HW casing to total depth. b. Remove bull plugs from the 6%-in casing, install 2-in ball valves and hoses to take returns while cementing. c. Pump fresh water through system to ensure adequate circulation. 3.9 f = ,p d. Mix 110%cement based on caliper log volume calculations and pump. ha�� e. Pump volume of fresh water or drill mud calculated to displace cement from inside HW casing. f. Shut surface valves and standby 12 hours for cement to cure. g. If cement failed to return to the surface, conduct top job by running a 1-in tremie pipe outside the casing as deep as possible and pumping additional cement through the tremie pipe to bring cement up to the surface. 11. Thread on 41/2-in wellhead assembly 12. Make up the following BOPE (if this is still required after the first deep hole at Pilgrim Hot Springs was drilled without any problems) (Note: 48h notification period for AOGCC inspector to witness annular BOP test) a. Install 2-in check valve on surface with high pressure line to manual ball valve on fill-up side of wellhead assembly. Install high pressure line from mud pump to check valve to act as kill line. b. Install manual ball valve on blowdown side of wellhead assembly with high pressure line to pneumatic HCR valve (located on surface). HCR valve is actuated by Nitrogen and is close-on-fail. Install 20 ft of 2-in hard line from HCR valve in a direction away from rig operator to act as a blow down line. Anchor 2-in hard line to prevent it from moving in use. c. Install 3M annular preventer(type: Regan Torus) d. Install top flange with pipe stub on top of annular preventer. e. Install diverter with flow line to return tank. f. Connect annular preventer to accumulator. 13. Function test HCR valv I annular preventer,checking for leaks a aspect hydraulic V accumulator. 14. Install test plug in wellhead.Test HCR valve,fill-up and blowdown line valves to 500 psi. 15. Test annular preventer to 500 psi. Chain down drill pipe and top drive before testing. 16. Test 4.5"casing to 500psi before drilling out shoe and perform LOT test. Lo k A 17. Install 3'/:-in rock bit, and 23/1-in drill pipe and insert to well bottom. Drill any cement from inside HW casing. 18. Drill to+/-2500 ft(TD). 19. Remove drill rods and run geophysical logs(natural gamma, resistivity, conductivity,and caliper) assuming wellbore temperatures are within tool operating limits. 20. Trip drill rods to well bottom, mix abandonment bentonite grout,and fill well with grout. 21. Remove drill rods and hang BQ casing(2.19-in OD, 1.81-in ID)with bottom plug to total depth. a. Fill BQ casing with fresh water while running to total depth. • 22. Cement top 200 ft of annular area between HW and BQ casing using 1-in tremie pipe. 23. Install 2-in lockable protective surface valve on top of BQ casing. 24. Rig down,clean up,decommission sump, and remove all drilling equipment and supplies from well site. t Plug and abandoning procedure(forml0-403 will be submitted separately) 25. After collecting final temperature log,fill BQ casing with silica sand from well bottom to 100 ft below land surface. a. Slowly pour sand from land surface to avoid bridging. i. Monitor depth to sand with tagging tape. 26. Install 1-in tubing inside of BQ casing to 100 ft, mix cement,and pump to surface. a. Leave 1-in tubing in place. 27. Excavate to 3 ft below land surface,cut and remove 6%-in, BQ,and 1-in casings. a. Save excavated material for use as fill 28. Fill excavation with saved material and reclaim site. a. Use front-loader to spread and smooth top-soil material removed and set aside during initial site preparation. • Drilling Fluids Program—Pilgrim Hot Springs Exploration Wells The hole will be drilled using standard fresh water bentonite drilling fluids.Additives to be used include (all listed products are NL Baroid trade names): • Quick-Gel high yield bentonite (hole stability,circulation control,clay-shale control) • Pac-L and Pac-R powdered cellulose polymer(clay-shale control,water loss,viscosity control) • Baroid 41 barite weighting material (mud density control) • 2-3%micronized cellulose (water loss, lost circulation control) Maintain a density of 8.8-9.0 ppg unless concerns of formation pressure dictate changing the density. Drill fluids will be monitored for viscosity, weight, and temperature on a continuous basis. Drilling fluids will have cuttings removed and will be recirculated via a 600 gallon trailer-mounted shaker system incorporating shaker screens and centrifugal desilting cones.Cuttings and used drill mud will be contained in above-ground tanks.At project's end,cuttings/mud will be disposed of per Alaska DNR requirements. Rotary drilling and reaming operations will be conducted using a skid-mounted Gardner-Denver 5"x 6", 200 gpm,duplex mud pump. If returns are lost,drilling may be continued using fresh water with polymer sweeps prior to connections. Maintain sufficient barite on location to raise the weight of 2 (two) hole volumes a total of 1 ppg if needed while drilling with mud. Alaska Center for Energy and Power•University of Alaska Fairbanks• 814 Alumni Drive•P.O.Box 755910• Fairbanks,Alaska 99775-5910•Tel:(907)474-5402•Fax: (907)474-5475 Figure 1: Wellhead for 4-1/2"Casing—Pilgrim Hot Springs Confirmation Wells 12 7-1/16"3M RTJ FLANGE —10 A. 442"OD to 4"ID HW CASING --4 2"XXH FNPT 2"XXH FNPT 2 I I I I I I I I I I 4.5" WELLHEAD (TWO EACH) Alaska Center for Energy and Power•University of Alaska Fairbanks• 814 Alumni Drive•P.O.Box 755910• Fairbanks,Alaska 99775-5910•Tel:(907)474-5402•Fax: (907)474-5475 • Figure 2: BOPE recommendation for 4-1/2"wellhead—Pilgrim Hot Springs Confirmation Wells I -41411111111111111111111 t r'- � Diverter Type: 4' Divertech"3022 x 7-1/16"Companion Flange with 6-5/8"Pipe Stub for Compression Lock on Diverter n n 7-1/16"3M Annular Preventer Type:Regan Torus :. ;:!,:. 4.5"x 7-1/16"3M Wellhead (two)2"Ball Valve WOG 1,500 psi At surface: 1 At surface: Check valve [ —, � ,-;1111 _jut. t_ High Pressure Hose Pneumatic HCR Low Pressure Hose Valve(1000 psi 1500 psi —Fill up line--0.- —Blow down line-0- minimum) CELLAR FLOOR Alaska Center for Energy and Power• University of Alaska Fairbanks• 814 Alumni Drive •P.O. Box 755910• Fairbanks, Alaska 99775-5910 • Tel: (907)474-5402 • Fax: (907)474-5475 • Figure 3: Top flange with 6-5/8"casing stub for diverter—Pilgrim Hot Springs Confirmation Wells --�--- 12 10 6-5/8"OD Plain End Casing 8 0.188 WT o 6.249" ID 6 4 6.625" 4 • 2 7-1/16" 3M RT1 FLANGE 0 TOP FLANGE W/ PIPE STUB FOR DIVERTER (ONE EACH) Alaska Center for Energy and Power•University of Alaska Fairbanks• 814 Alumni Drive•P.O.Box 755910• Fairbanks,Alaska 99775-5910•Tel:(907)474-5402•Fax: (907)474-5475 Figure 4: BQ Rod x 3"Valve Bushing—Pilgrim Hot Springs Confirmation Wells -r T_ r J r r � 3" T T 4 1.91" ► 2.21 ► 1 (OF 4) Set Screws O 2.19" BQ Rod (1.81" ID) BQ ROD X 3" VALVE BUSHING (TWO EACH) Alaska Center for Energy and Power•University of Alaska Fairbanks• 814 Alumni Drive•P.O.Box 755910• Fairbanks,Alaska 99775-5910•Tel:(907)474-5402• Fax:(907)474-5475 , Figure 5: Composite Temperature Logs-Pilgrim Hot Springs Confirmation Wells 0 1 ///7// r ,/,///////////// /f4 ,/.//y/p t t 7'../.74' ./ / /414 44 ',eft/r 1 j / f ' ,Tikerrn31 t[Ulier,rynt ///// /f// f //, / ) r „," 'rr : Id/ ion Zit//i /riri /i // /// / //ii //Tfr /s117 f rti _f / . r" r- e 200 - 4r,.._r �4, �, I .r I !f, T�� ) 300w k i 1 400 1 0 500 a 600- EXPLANATION _r _,.. P$-1 PS-3 700 - _.--- PS-4 . _ PS-S 800- 900 i L 9 t 1 1 _ ► .1 20 30 40 50 60 70 so 90 • Temperature,irf°C Woodward-Clyde Consultants-Figure 19;Results of Drilling, Testing and Resource Confirmation, Geothermal Energy Development at Pilgrim Springs,Alaska, 1983. Alaska Center for Energy and Power•University of Alaska Fairbanks• 814 Alumni Drive•P.O.Box 755910 Fairbanks,Alaska 99775-5910•Tel: (907)474-5402 •Fax: (907)474-5475 v -0 a) U Q O ro U i U ,4- L v) V) E D Vf7:3 O O a) bD C _0 — C' cu 2 47- Nv bO N C. -0 vim- pA (13 Li- C co U U O C O eU CT) 4-, }' Q) ,-4 ---•--E c) v o 0 0 00 CN CU c -p E c l0 U �' aJ C O (1) N O - E c0 + E .� 1f a) -0 O a) 0' a) ".' = U Q U m V) • N cC V Ili � n C if _ i IA I cs cu Q.) o O -C O O c O v o Ln o r? 00 c•Ni 2 0 oN c 4-,m o 03 a) C O 0 te 0a) Ln 0 N •i Ql - • ...-- 71.1 _0 0) ro E CU co UO U L E 4- 0 v— L O 0 u) OO v O -0 (.%aA 9 - �O V 4 4- O a' p o _o i O to ro +--' QJ � = OD NI C C a� cn N ° i -0 4- o co co a) o a..) r-i O EO O 00 Q) 00 O c � 4- C rl (--I ifi rc Q 0 U V f V i i k f� rIIIMMIIIIIIIIIIIII A E a) N N co ez O _O O Co QJ O _C O en O £ 4' 000 0) £ +J r, L 00Q) Lr1 0 U) — L 0 s U QJ wQx QIII cou E op c — O N 4) a1 co O 4--U � +�CD 4� N Li— O O O Q ro N co C O 0 . I Lro ) vs R3 4- O o c--I £ I }' (1) o� E o ow v o E o c CO (i c -0r1 2 LOU d' N £ O a N O _ uE -C2O a, a Q _0 v m t V aaepns puel of luawo :s�q �j OOT of wolioq Hem WOJ4 pues eDffis t 11 CL rillilliiii. CO U -O ar •� -o a) L O c CD N O 4- O r-I 010N 2 0 oN £ 4-' m 0 W o a� C Co a) � -0 •i al -0 0. Ao N • , G 11) c 10 o0 �+ j 13) y +' U tt 12 ! o .;—f 03 N N co N CO U) co c == a) o co co I • o • > -°'a V N j (13 m �I c � j 3 Y � i > � , N �L ca. > Y CU V J • #' M E N E'- E •U C ID Kc co :laiIiiiuuil 42, re 0 mooP!nli IA 0 14 tk o �� ,. 9 'o F 0 en To `�t1x1 �O _ >i_ O0 ? r �aQQV/ / 0oo ilfi::Itir::' O i Attachment 3 Pressure-Temperature Stability—Pilgrim Springs Exploratory Wells Exploratory wells are scheduled to be drilled in the Pilgrim Springs KGRA(Known Geothermal Resource Area during the summer of 2012. A key question regarding the wells is whether it is necessary to drill with a blowout preventer in place. Evaluation of such a need includes determination of the temperature-depth profile at which the saturated steam pressure equals that exerted by the borehole- filled mud column. Saturated steam absolute pressures, in psi,vs.temperature, in °F, were computed with the Antoine equation via use of an on-line calculator, available at www.watervaporpressure.com. Gage pressures, computed by subtracting 14.7 psi atmospheric pressure from the absolute pressures, are plotted as the red line in Figure 1.The mud column, for a weight of 9.5 lb/gal., exerts a pressure of 0.495 psi/ft, resulting in the stability relationship shown by the black line in Figure 1.As an example, from Figure 1, if an ambient temperature of 350°F were encountered at a depth of less than 250 ft,the mud column confining pressure would be inadequate to prevent pore water from flashing to steam, resulting in a blowout, whereas encountering that temperature at greater depth should not cause a problem. 0 0 100 — — 100 a � 200 — Temperature — 200.1 a? Pressure Unstable a Stable - 0 300 — — 300& 400 — — 400 500 I I I 500 200 250 300 350 400 Temperature,°F Figure 1. Graph showing the temperature-depth relationship governing blowout potential in a geothermal system.The black line provides the depth at which stability occurs for a specified temperature, and the red line the critical pressure, in psi. The maximum temperature for which computations were made is 400°F, based on geothermometry using water chemistry, as provided by Liss and Motyka (1994).According to that reference, the silica geothermometer provides a geothermal source water temperature of 275°F; the cation geothermometer(Na/K, Na-K-Ca) a water temperature of 300°F; the K-Mg geothermometer a water temperature of 320 °F; and the Mg-Li geothermometer a water temperature of 375°F.The maximum geothermometer temperature was rounded up to 400°F to provide a probable upper limit to the temperature likely to be encountered at depth. Note that this temperature maximum must be encountered at a depth of less than 500 ft to result in blowout potential. The minimum temperature in the stability chart is 212 °F, which is higher than any temperature measured in temperature logs of wells drilled in the Pilgrim Springs KGRA. Representative temperature logs of 4 of the 6 legacy wells(PS-1, PS-3, PS-4,and MI-1, drilled in 1982 and 1983 [Kunze and Lofgren, 1983)), and the two wells drilled in 2011 (PS11—S1 and PS11-S9)are shown in Figure 2. Note that the maximum logged temperature is less than 200°F. - 100 — 200 — — ,� PS11-S9 w - ( - Geo 1 - PS11-S1 300 — - Geo 3 - --— PS-1 PS-3 - PS-4 400 — MI-1 — 500 I I I 40 80 120 160 200 Temperature, °F Figure 2.Temperature logs for selected wells in the Pilgrim Springs KGRA, showing that maximum temperatures are less than 200°F. Temperature logs were also obtained from several GeoprobeTM wells installed to depths of 65 to 100 ft in 2011. Selected logs are shown in Figure 3. Note that maximum temperatures are less than 200°F, whereas instability at a depth of 100 ft requires a temperature of about 300°F (Figure 1). • 20 — a) CL 0 60 — geo_15 geo 6 - — geo 8 geo 9 80 — geo 16 geo 13 100 i I 50 100 150 200 Temperature, °F Figure 3.Temperature logs for selected Geoprobe wells. In conclusion,geothermometry suggests that there is a potential for water temperature at depth to reach about 400°F. If temperatures of 220 to 400°F were encountered at depths of less than 500 ft, the potential exists for a blowout to occur. However, none of the eight wells drilled to date have encountered temperatures greater than 200°F. Based on these facts,we recommend that drilling progress without a blowout preventer, but that mud temperature be monitored. Should mud temperature reach a specified threshold, say 200°F,drilling would be interrupted to monitor bottom- hole mud temperature. If estimated bottom-hole temperature approached that indicating instability, as shown in Figure 1, the blowout preventer would be added to the drill string. References Kunze,J.F., and Lofgren, B.E., 1983, Pilgrim Springs, Alaska geothermal resource exploration, drilling and testing: Geothermal Resources Council,Transactions,v. 7, p.301 -304. Liss, S.A. and Motyka, R.J., 1994, Pilgrim Springs KGRA, Seward Peninsula, Alaska:Assessment of fluid geochemistry: Geothermal Resources Council Transactions,Vol. 18, p. 213-219. Attachment 4 PERMITS TO DRILL PS-12-2 PS-12-6 PS-12-5 PS-12-4 (PS-12-3 PS-12-7 Attachment 5 DETAILED DRILLING POINT INFORMATION O o 0 0 0 0 0 T 0 N o pm .+ 00 vi coa �-0 CO CO N 103 n a E . 0. 01 N00 M 00 n N N 10 00 O1 N N N J a N N 0 ~ t. N ON VI LL 01 ri M M O to N 10 m N 01 a 01 Q N N 00 m Ol N J N to N Q LL l0 10 N m t0 N 1O c m CO m m m m O v d h g 800 NN V CO000 Q n N u 10 N 10 10 N m N LLI 0N N n CO N a N pp 10 00 N N m 01 C m CO a in a, n t0 � n (IQ - CO 0 N 0 W N 03 an l• 00 Vf 00 10 1O 10 l0 LID 1D t0 1D 10 10 1D LO 10 LO 155}}Q000��5 1}10 1}S00 10 Y0 0 O Oa LL m N 00 in a CO N 10101t-1 /311N0 In a C M C N aN N N LO m t' N 0• 00 N N O O 01 Z 1Ul1 U, 11nn U, U, In in v a 111111 I - NIONN • 1.0 01 CO CO u a n N 01 OO a D7 LD • M 0 N ti NVaN LO CO b 01 00 O O O m m C 00 V1 10m N n O y N N 00 00 10 a Of • O OO N 0 0 N O A M N m M m M m 1+1 0 0 0 0 0 0 0 N N N N N N N EO O Sa pppp O O 2 00 V1 O N N O m CO 10 CO N U, N 10 �p N t0 N Ln N 0 00 ▪ iif; N co 00 ON 10 O Q N119 00 01 N N Q m m tom m m m m Z N N N N N N N N pN ppN 1. N 8 .§ a p pN N 0 0 0 0 0 0 8 N Q ma 01 m CO 00 n to Q 0Na00N ' N Z N m 1D CO CO N N NN CFI N N N CO N C• 01 01 Cr! 01 01 01 CI! 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C' , Stratigraphic Test Non- ventional Well FIELD: /i l7 Yioy POOL: Z-Z_/>g_c.;i•---7/ _ =e 74--/-2 (qf Check Box for Appropriate Letter/Paragraphs to be Included in Transmittal Letter CHECK ADD-ONS WHAT (OPTIONS) TEXT FOR APPROVAL LETTER APPLIES MULTI LATERAL The permit is for a new wellbore segment of existing well (If last two digits in Permit No. ,API No. 50- - - API number are between 60-69) Production should continue to be reported as a function of the original API number stated above. PILOT HOLE In accordance with 20 AAC 25.005(f), all records, data and logs acquired for the pilot hole must be clearly differentiated in both well name ( PH) and API number (50- - - ) from records, data and logs acquired for well . SPACING The permit is approved subject to full compliance with 20 AAC EXCEPTION 25.055. Approval to produce/inject is contingent upon issuance of a conservation order approving a spacing exception. assumes the liability of any protest to the spacing exception that may occur. DRY DITCH All dry ditch sample sets submitted to the Commission must be in SAMPLE no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. Non-Conventional Please note the following special condition of this permit: Well production or production testing of coal bed methane is not allowed for (name of well) until after (Company Name) has designed and implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the Commission to obtain advance approval of such water well testing program. Rev:9/09/2011 un ToN 0) 0 0 0- 0 N N 0 N � OX co L o 6 a) 0. co N C 00O Q 1. 11 ii O0 0 U U W m C T'y o m -O = W. 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