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Home My WebLink About214-122Nolan Vlahovich Hilcorp Alaska, LLC Geotech 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Tele: (907) 564-4558 E-mail: nolan.vlahovich@hilcorp.com Please acknowledge receipt by signing and returning one copy of this transmittal. Received By: Date: Date: 12/05/2024 To: Alaska Oil & Gas Conservation Commission Natural Resource Technician 333 W 7th Ave Suite 100 Anchorage, AK 99501 SFTP DATA TRANSMITTAL T#20241217 Well API #PTD #Log Date Log Company Log Type AOGCC Eset# BCU 12A 50133205300100 214070 8/17/2024 YELLOWJACKET GPT-PERF BCU 19RD 50133205790100 219188 9/26/2024 YELLOWJACKET PERF-GPT BCU 24 50133206390000 214112 8/19/2024 YELLOWJACKET PERF BCU 25 50133206440000 214132 9/27/2024 YELLOWJACKET PLUG-PERF BLOSSOM 1 50133206480000 215015 9/30/2024 YELLOWJACKET GPT-PLUG-PERF HV B-17 50231200490000 215189 9/23/2024 YELLOWJACKET GPT KU 24-7 50133203520100 205099 10/3/2024 YELLOWJACKET PERF KU 13-06A 50133207160000 223112 12/5/2024 AK E-LINE Plug Setting KU 22-6X 50133205800000 208135 12/8/2024 AK E-LINE Perf KU 23-07A 50133207300000 224126 12/7/2024 AK E-LINE CBL MPU L-17 50029225390000 194169 10/5/2024 YELLOWJACKET PERF MPU R-103 50029237990000 224114 10/14/2024 YELLOWJACKET CBL MPU C-23 50029226430000 196016 11/29/2024 AK E-LINE Plug/cement MPU D-01 50029206640000 181144 11/26/2024 AK E-LINE Perf PBU 13-24B 50029207390200 224087 9/26/2024 YELLOWJACKET CBL PBU 06-07A 50029202990100 224043 9/29/2024 BAKER MRPM PBU 06-18B 50029207670200 223071 10/1/2024 BAKER MRPM PBU 07-32B 50029225250200 204128 10/28/2024 BAKER SPN PBU 14-32B 50029209990200 224073 10/12/2024 BAKER MRPM PBU H-13A 50029205590100 209044 10/23/2024 BAKER SPN PBU L2-20 50029213760000 185134 10/7/2024 BAKER SPN PBU L3-22A 50029216630100 219051 10/9/2024 BAKER PEARL 10 50133207110000 223028 9/25/2024 YELLOWJACKET GPT-PERF PEARL 11 50133207120000 223032 8/29/2024 YELLOWJACKET GPT-PLUG-PERF SRU 241-33 50133206630000 217047 8/23/2024 YELLOWJACKET PERF Please include current contact information if different from above. T39863 T39864 T39865 T39868 T39869 T39870 T39871 T39872 T39873 T39875 T39874 T39867 T39866 T39876 T39877 T39880 T39878 T39879 T39881 T39882 T39883 T39884 T39885 T39886 T39887 BCU 24 50133206390000 214112 8/19/2024 YELLOWJACKET PERF Gavin Gluyas Digitally signed by Gavin Gluyas Date: 2024.12.18 08:35:44 -09'00' • 14C- Pit 214- (7z„ Regg, James B (DOA) From: Regg, James B (DOA) Sent: Thursday, August 27, 2015 2:57 PM `\ �( BIZ?((S To: musibelli@comcast.net Cc: DOA AOGCC Prudhoe Bay; Colombie,Jody J (DOA) Subject: RE:AOGCC Test Witness Notification Request: Location, HC#1, Healy Basin Location Clearance inspection is not required based on a review of the photos provided 8/26/15 (separate email). Jim Regg Supervisor, Inspections AOGCC SCANNED JAN 8 2011, 333 W,7th Ave,Suite 100 Anchorage,AK 99501 907-793-1236 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 Jim Regg at 907- 793-1236 or iim.regg@alaska.gov. From: Mitchel Usibelli [mailto:noreply@@formresponse.com] Sent: Wednesday, August 26, 2015 2:41 PM To: DOA AOGCC Prudhoe Bay Subject: AOGCC Test Witness Notification Request: Location, HC#1, Healy Basin Question Answer Type of Test Requested: Location Requested Time for 08-28-2015 1:00 PM Inspection Location HC#1, Healy Basin Name Mitchel Usibelli E-mail musibelli@comcast.net Phone Number (206) 546-2691 Company Usibelli Coal Mine, Inc. HC#1 Well was P&A'd last fall; Bond renewal due; We are in Other Information: contact with Jody Colombie; Sent Jody additional photos showing final pad cleanup and reclamation; Requesting waiver of site inspection for site clearance; 1 • a 0 o I ,c o QI o o) m o H - o0 0 ,� jar co O O oI U �i o Z C co 00 J_O x p N O) 0) co Q' U E c. a) 0_ [, g of _oI 0 �_IQI -oo• '-o _ 2 :° �* �I a M ayi a .- (,) A Le) 0 2 0 2 No NI 2 ono m •• O O . 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C d Z �; Q O OC < 0 0 C 0 0 0 0 0 0 0 0 0 0 c 2 m U a J a) N •a 0 E 0 o It a -'o O ° a Ng _N m Ce d2wwwwwwww °) wUo a w z a 0 V U � • • O 9O o I N 9i N ,- O o oo at o Z -0 o N O 0 1 8 Q C ....0 T cm O w z Q `V 08a c C) coVs I— z 1 a Ce u; z m a o 0 IX 0 LI J J w COLLJ V a n 0 Z 8 a ICC r m J Q w o a (p �,C O • N m a csi E V N U o J < 1 e 1 a. v o 511 G N 0 CO N 0, N i, CO RS CC o Q ° a0 z E CI iii 0 z d • co j N ' a N H .O r m Nm d ce O N C U w E CU' ) E E E o d 2 0 I C.) • • Release of Confidential Data Coversheet Well Name: HC 1 PTD: 214-122 E-Set:T25078 ✓ Physical data labeled with PTD, E-Set# Conf. entry: various ✓ Import CD data to RBDMS ✓ Confidential (incomplete) entry in Well Data List notes V Import to Dig Logs via E-Set tab V Scan labeled data V/Apply OCR text recognition D7B' ave to Well Log Header Scans New"complete" entry in Well Data List notes Logged by: Meredith Guhl Fully logged: 12/2/2016 • i Guhl, Meredith D (DOA) From: Decker, Paul L (DNR) Sent: Monday, October 10, 2016 10:27 AM To: Guhl, Meredith D (DOA) Subject: RE: HC 1, PTD 214-122, Due for release 10/20/2016 Hello Meredity, No, Usibelli has not requested extended confidentiality on the Healy Creek 1 well. Regards, -Paul Paul L.Decker,Petroleum Geologist Resource Evaluation Manager Alaska Division of Oil&Gas 550 W.7th Ave,Ste.1100 Anchorage,AK 99501 (907)269-8791 pauLdecker@alaska.gov CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Department of Natural Resources(DNR),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 DNR is aware of the mistake in sending it to you,contact Paul Decker at(907) 269-8791 or paul.decker@alaska.gov. From: Guhl, Meredith D(DOA) Sent: Monday, October 10, 2016 9:30 AM To: Decker, Paul L(DNR)<paul.decker@alaska.gov> Cc: Bettis, Patricia K(DOA)<patricia.bettis@alaska.gov>; Davies,Stephen F(DOA)<steve.davies@alaska.gov> Subject: HC 1, PTD 214-122, Due for release 10/20/2016 Hello Paul, Has extended confidentiality been requested by Usibelli for HC 1, PTD 214-122, due for release on October 20, 2016? Thank you, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Anchorage,AK 99501 meredith.guhl@alaska.gov Direct: (907) 793-1235 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 Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 1 oF THE STATE Alaska Oil and: Cas ofAT 333 West Seventh Avenue GOVERNOR BILL WALKER Anchorage, Alaska 99501-3572 Main: 907.279.1433 O'P'ALAS*F• Fax: 907.276.7542 www.aogcc.alaska.gov June 1, 2015 CERTIFIED MAIL— RETURN RECEIPT REQUESTED 7015 0640 0006 0779 5814 Mitchel D. Usibelli License Representative Usibelli Coal Mine, Inc. P.O. Box 1000 Healy, AK 99743 Dear Mr. Usibelli: At the request of Usibelli Coal Mine, Inc. (UCMI) on Wednesday, May 27, 2015, the AOGCC is providing to UCMI a copy of the completion report and a copy of the final inclination survey information for UCMI's HC No. 1 exploratory well. Under 20 AAC 25.537(d), the AOGCC is holding this information confidential until October 20, 2016. Please handle the information accordingly. Sincerely, � - I f SENDER: COMPLETE THIS SECTION COMPLETE THIS SECTION ON DELIVERY TIMID • Complete items 1,2,and 3. A. Sig • Print your name and address on the reverse X 0 Agent so that we can return the card to you. 0 Addressee • Attach this card to the back of the mailpiece, B. .,ce'ved .y/Prii ted N ) C. Date of Delivery or on the front if space permits. , dl/z' jVi r D. Is delivery address different from item 1? ❑ Mitchel D. Usibelli RE( 1f YES,enter delivery address below: D o , License Representative Usibelli COal Mine, Inc. JU 0 ZO15 ,c0 P.O. Box 1000 /QS% Healyk,AK 99743ttii 3. Service Type 0 riirpricy Mail Express® 111111111 IR 1111111111 II 11111 111111111 II II IIIO Adult Signature 0 Registered MeV. O Adult Signature Restricted Delivery ❑Registered Mat Restricted 0 Certified Mail® Delivery 6 E 9590 9401 0049 5071 3201 30 i Certified Mail Restricted Delivery 0 Return Receipt for ❑Collect on Delivery Merchandise 2. Article Number(Transfer from service label) 0 Collect on Delivery Restricted Delivery 0 Signature ConfirmationTM ❑Insured Mail 0 Signature Confirmation ❑Insured Mail Restricted Delivery Restricted Delivery rnmar aanrn PS Form 3811,April 2015 PSN 7530 7 015 0640 0006 0779 5 814 3eceipt • • Guhl, Meredith D (DOA) From: Mitch Usibelli [musibelli@comcast.net] Sent: Wednesday, May 27, 2015 1:59 PM To: Davies, Stephen F (DOA); Guhl, Meredith D (DOA) Subject: Completion Report for HC 1 Steve and Meredith, Do you have a copy of the final Completion Report for HC #1 you could send me? Heather Heusser and Kelsey Tucker at ADNR have requested some information while working on a tax credit application for HC#1. This includes requesting a copy of the final Completion Report and a copy of any Directional Survey. I've let them know we attained a Variance to the Directional Survey in advance and assume that would also be reflected in the Completion Report. Please let me know if you have any questions. Thank you. Mitch Mitchel D. Usibelli License Representative Usibelli Coal Mine, Inc. musibelli@comcast.net (206)546-2691 (wk) (206)999-5665 (cell) 1 III STATE OF ALASKA • ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 1a.Well Status: Oil❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned ❑✓ - Suspended❑ lb.Well Class: 20AAC 25.105 2OMC 25.110 Development ❑ Exploratory Q • GINJ Li WNJ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number/(Sundry Number): Usibelli Coal Mine,Inc. ( Aband) 9/20/2014 . 214 122(314 523) 3.Address: 6.Date Spudded: 13.API Number: P.O.Box 1000, Healy,AK 99743 9/12/2014 50-105-200001-00-00 - 4a.Location of Well(Govemmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2281'FSL&1300'FEL Sec 16 12s 6w 9/17/2014 HC #1 . Top of Productive Horizon: 8.KB(ft above MSL): 2041 15.Field/Pool(s): ± 2281'FSL&1300'FEL Sec 16 12s 6w GL(ft above MSL): 2031 Healy Creek.Exploration Project(Gas Only) Total Depth: 9.Plug Back Depth(MD+TVD): ± 1899est'FSL&131 lest'FEL Sec 16 12s 6w n -4/-4 4b.Location of Well(State Base Plane Coordinates,NAD 27):/ t f 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 705120.29 • y- 3609915.62 •y/4 Zone- TM ' ±1278.5/±1167 . ADL 390606 TPI: x- 705120.29 est y-3609915.62 est Zone- FM 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 705109.42 est y- 3609534.072 est Zone- FM na 18.Directional Survey: Yes Q No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) na (ft.MSL) NA 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drtil/Lateral Top 1Mndow MDTI VD: mudlog,temp,deviation,DIL,CDL,dip 23. CASING,LINER AND CEMENTING RECORD 'PER SETTING DEPTH MD SETTING DEPTH TVD AMOUNT CASINGGRADE HOLE SIZE CEMENTING RECORD FT. TOP BOTTOM TOP BOTTOM PULLED 9.625 40 N80 0 134 0 134 Driven Driven 120 0 TO 0 0 1278.5 0 1278.5 8.5 na na 0 0 0 0 0 0 0 0 na 0 0 0 0 0 0 0 0 na 0 0 0 0 0 0 n 0 0 na 0 0 0 0 0 0 0 0 na 24.Open to production or injection? Yes ❑ No Q • 25. TUBING RECORD If Yes, list each interval open(MD4TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 0 0 0'MD 0'TVD t Was hydraulic fracturing during CEMENTs4�UEEZE,ETC. No ❑ D E C DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): na/P&A Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil 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❑j . 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. Form Cored MD TVD Core length Lith(See mud loq) Hydrocarbon/Water Coal Seam 4 700' 682' 722-36 Coal slight gas Coal Seam 2 980' 929' 984.5-998.6 Coal slight gas Coal Seam 1 1152' 1062' 1173-89 Coal slight gas See Usibelli+HC-1+Geologic+Field+Report - 1189-1200.7 Coal slight gas AND Field Coal Seam Descriptions 1200.7-1216 Coal slight gas Form 10-407 Revised 10/2012 CONTINUED ON REVERSE , Al •Z-3-I rSubmit original only • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? kes Dto , If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top na na and submit detailed test information per 20 AAC 25.071. Permafrost-Base na na quaternary grvl 5 5 Lignite Creek FM est 50 50 Top Usibelli est 125 125 Casing 1 134 134 Coal Seam 6-Suntrana FM 200 200 Coal Seam 5 305 304 Coal Seam 4 700 682 Coal Seam 3 870 837 Coal Seam 2 980 929 Coal Seam 1 1152 1062 Healy Creek FM?? 1254 1143 est TD 1278.5 1167 est Formation at total depth: 1279 . 1167 est 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stephen Hennigan 337 849-5345 Email: shenniaaneoeiinc.com Printed Name: Stephen F.Hennigan Title: Consulting Proj Mgr/Engr for UCM Signature: Phone: (337)849-5345 Date: 10/9/2014 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 • • PLAN VIEW COMPU-LOG DEVIATION CLIENT: USIBELLI COAL MINE INC. SCALE: 150 FT/IN LOCATION: HEALY TRUE DEPTH: 1087.74 FT HOLE ID: HC#1 AZIMUTH: 181.6 DATE OF LOG: 09/18/14 DISTANCE: 381.7 FT PROBE: 9412A 2761 MAG DECL: 27.5 + = 100 FT INCR ° = BOTTOM OF HOLE N 450. 0FT 300.0FT 4111111111 150.0 1111114011, 111 ______---------YI S * * * * * * * COMPU-LOG - VERTICAL DEVIATION * * * * * * * CLIENT : USIBELLI COAL MINE HOLE ID. : HC#1 FIELD OFFICE : NA DATE OF LOG : 09/18/14 DATA FROM : 16 PROBE : 9412A , 2761 MAG. DECL. 27.500 DEPTH UNITS : FEET LOG: HC#1_09-18-14_12-02_9412A .02_102.89_1189.32 DEVI.log CABLE DEPTH TRUE DEPTH NORTH DEV. EAST DEV. DISTANCE AZIMUTH SANG SANGB 120.00 119.99 0.26 -0.04 0.3 351.7 1.4 4.0 130.00 129.98 0.50 -0.06 0.5 353.7 1.9 160.2 140.00 139.98 0.49 -0.21 0.5 337.5 1.9 230.4 150.00 149.97 0.28 -0.50 0.6 298.9 2.3 243.2 160.00 159.96 0.10 -0.91 0.9 276.5 2.5 243.9 170.00 169.95 -0.07 -1.38 1.4 267.2 3.4 257.3 180.00 179.93 -0.19 -1.98 2.0 264.6 3.8 260.8 190.00 189.90 -0.31 -2.67 2.7 263.4 4.1 259.4 200.00 199.88 -0.52 -3.41 3.5 261.3 4.6 249.7 210.00 209.84 -0.86 -4.18 4.3 258.3 5.1 240.4 220.00 219.79 -1.37 -4.98 5.2 254.6 5.8 235.2 230.00 229.74 -1.99 -5.78 6.1 251.0 6.1 230.7 240.00 239.68 -2.74 -6.58 7.1 247.4 6.3 224.1 250.00 249.61 -3.58 -7.44 8.3 244.3 7.3 226.0 260.00 259.52 -4.52 -8.34 9.5 241.5 7.6 221.6 270.00 269.43 -5.59 -9.21 10.8 238.7 8.3 218.1 280.00 279.32 -6.76 -10.11 12.2 236.3 8.8 216.7 290.00 289.20 -7.99 -11.00 13.6 234.0 9.1 213.9 300.00 299.07 -9.38 -11.87 15.1 231.7 10.1 209.5 310.00 308.91 -10.92 -12.77 16.8 229.5 10.6 208.9 320.00 318.73 -12.54 -13.68 18.6 227.5 10.9 207.4 330.00 328.54 -14.25 -14.60 20.4 225.7 11.5 208.2 340.00 338.34 -16.05 -15.52 22.3 224.0 11.9 205.2 350.00 348.11 -17.93 -16.43 24.3 222.5 12.4 204.9 360.00 357.87 -19.93 -17.35 26.4 221.0 12.8 204.6 370.00 367.62 -21.93 -18.27 28.5 219.8 12.9 203.6 380.00 377.37 -24.01 -19.15 30.7 218.6 13.3 201.8 390.00 387.09 -26.18 -19.98 32.9 217.3 13.6 200.4 400.00 396.80 -28.43 -20.80 35.2 216.2 14.2 199.7 410.00 406.48 -30.79 -21.64 37.6 215.1 14.8 198.6 420.00 416.14 -33.25 -22.48 40.1 214.1 15.4 199.0 430.00 425.76 -35.83 -23.33 42.8 213.1 15.8 198.4 440.00 435.39 -38.38 -24.19 45.4 212.2 15.3 197.5 450.00 445.03 -40.90 -25.04 48.0 211.5 15.4 199.4 460.00 454.67 -43.45 -25.85 50.6 210.8 15.7 196.8 470.00 464.30 -46.00 -26.64 53.2 210.1 15.4 196.4 480.00 473.94 -48.57 -27.39 55.8 209.4 15.7 195.6 490.00 483.55 -51.24 -28.09 58.4 208.7 16.4 193.4 500.00 493.13 -54.01 -28.81 61.2 208.1 16.7 195.5 510.00 502.69 -56.85 -29.56 64.1 207.5 17.3 194.7 520.00 512.24 -59.72 -30.33 67.0 206.9 17.5 194.9 530.00 521.77 -62.66 -31.07 69.9 206.4 17.8 192.9 540.00 531.27 -65.69 -31.79 73.0 205.8 18.8 192.8 550.00 540.73 -68.82 -32.62 76.2 205.4 18.9 196.1 560.00 550.19 -71.93 -33.54 79.4 205.0 18.8 196.9 570.00 559.66 -75.02 -34.43 82.5 204.7 18.9 195.0 580.00 569.12 -78.15 -35.30 85.8 204.3 19.0 195.3 590.00 578.55 -81.39 -36.10 89.0 203.9 19.7 193.7 600.00 587.96 -84.68 -36.80 92.3 203.5 19.8 191.7 610.00 597.36 -88.05 -37.41 95.7 203.0 20.4 188.9 620.00 606.72 -91.52 -37.91 99.1 202.5 20.6 187.2 630.00 616.08 -95.03 -38.29 102.5 201.9 20.7 185.4 640.00 625.42 -98.58 -38.59 105.9 201.4 21.2 184.7 660.00 644.07 -10• -39.13 112.8 200.3411 20.7 184.5 670.00 653.43 -109.30 -39.45 116.2 199.8 20.7 185.8 680.00 662.79 -112.80 -39.75 119.6 199.4 20.4 185.2 690.00 672.18 -116.23 -40.04 122.9 199.0 20.1 185.6 700.00 681.57 -119.66 -40.40 126.3 198.7 20.3 186.1 710.00 690.93 -123.15 -40.82 129.7 198.3 20.6 187.7 720.00 700.30 -126.61 -41.21 133.2 198.0 20.4 186.6 730.00 709.66 -130.10 -41.61 136.6 197.7 20.7 186.7 740.00 719.00 -133.67 -41.95 140.1 197.4 21.6 184.2 750.00 728.31 -137.30 -42.23 143.7 197.1 21.6 184.8 760.00 737.59 -141.02 -42.52 147.3 196.8 22.1 182.5 770.00 746.84 -144.81 -42.70 151.0 196.4 22.6 181.8 780.00 756.06 -148.69 -42.84 154.7 196.1 23.3 181.2 790.00 765.21 -152.71 -42.91 158.6 195.7 24.0 181.2 800.00 774.32 -156.84 -42.99 162.6 195.3 24.7 182.1 810.00 783.37 -161.09 -43.11 166.8 195.0 25.8 178.1 820.00 792.35 -165.49 -42.97 171.0 194.6 26.4 177.8 830.00 801.30 -169.94 -42.83 175.3 194.1 26.4 179.6 840.00 810.23 -174.44 -42.69 179.6 193.8 27.1 177.4 850.00 819.11 -179.03 -42.44 184.0 193.3 27.6 176.1 860.00 827.94 -183.71 -42.09 188.5 192.9 28.3 175.2 870.00 836.72 -188.48 -41.68 193.0 192.5 28.8 174.6 880.00 845.46 -193.31 -41.20 197.7 192.0 29.4 174.7 890.00 854.15 -198.24 -40.74 202.4 191.6 29.9 175.1 900.00 862.79 -203.25 -40.27 207.2 191.2 30.5 174.7 910.00 871.37 -208.37 -39.75 212.1 190.8 31.3 174.6 920.00 879.88 -213.59 -39.16 217.1 190.4 32.0 174.0 930.00 888.31 -218.92 -38.54 222.3 190.0 32.9 172.5 940.00 896.66 -224.39 -37.90 227.6 189.6 33.9 172.5 950.00 904.92 -229.98 -37.15 233.0 189.2 34.8 172.9 960.00 913.08 -235.71 -36.41 238.5 188.8 35.9 172.8 970.00 921.13 -241.56 -35.48 244.2 188.4 36.9 170.5 980.00 929.12 -247.50 -34.48 249.9 187.9 37.1 169.8 990.00 937.08 -253.47 -33.47 255.7 187.5 37.3 169.9 1000.00 945.04 -259.42 -32.39 261.4 187.1 37.3 170.4 1010.00 952.98 -265.41 -31.37 267.3 186.7 37.4 170.7 1020.00 960.92 -271.40 -30.34 273.1 186.4 37.4 170.4 1030.00 968.85 -277.40 -29.28 278.9 186.0 37.6 170.5 1040.00 976.75 -283.44 -28.19 284.8 185.7 38.0 170.0 1050.00 984.61 -289.52 -27.06 290.8 185.3 38.4 169.7 1060.00 992.40 -295.68 -25.95 296.8 185.0 39.1 170.4 1070.00 1000.14 -301.91 -24.82 302.9 184.7 39.3 170.1 1080.00 1007.87 -308.16 -23.73 309.1 184.4 39.6 169.8 1090.00 1015.55 -314.47 -22.62 315.3 184.1 40.1 171.0 1100.00 1023.17 -320.84 -21.50 321.6 183.8 40.7 169.3 1110.00 1030.73 -327.29 -20.35 327.9 183.6 41.1 169.5 1120.00 1038.23 -333.80 -19.22 334.4 183.3 41.7 171.2 1130.00 1045.67 -340.39 -18.11 340.9 183.0 42.2 171.6 1140.00 1053.02 -347.08 -17.00 347.5 182.8 43.3 170.1 1150.00 1060.26 -353.87 -15.80 354.2 162.6 44.1 171.5 1160.00 1067.36 -360.80 -14.55 361.1 182.3 45.3 170.4 1170.00 1074.33 -367.85 -13.25 368.1 182.1 46.2 169.7 1180.00 1081.25 -374.96 -11.97 375.2 181.8 46.1 169.8 1189.32 1087.71 -381.52 -10.87 381.7 181.6 45.4 176.4 U.S. Postal Service`" CERTIFIED MAIL° RECEIPT ra Domestic Mail Only u1 For delivery information,visit our website at www.usps.com®. OF r- Certified Mail Fee r Extra Services&Fees(check box,add fee as appropriate) ❑Return Receipt(hardcopy) $ ❑Return Receipt(electronic) $ Postmark 0 Certified Mail Restricted Delivery $ Here 173 ❑Adult Signature Required $ ❑Adult Signature Restricted Delivery$ O Postage oTotal Postage and Fees Mitchel D. Usibelli $ Sent To License Representative Usibelli COal Mine, Inc. Street andApt.No.,or PO Box No. P.O. Box 1000 City,State,Z!P+46 Healyk,AK 99743 PS Form 3800,April 2015 PSN 7530-02-0 --- - - • ons • • Guhl, Meredith D (DOA) From: Davies, Stephen F (DOA) Sent: Wednesday, May 27, 2015 3:11 PM To: Guhl, Meredith D (DOA); Bettis, Patricia K(DOA) Subject: FW: Completion Report for HC 1 Meredith, Since HC No. 1 is a confidential exploratory well,and since Usibelli Coal Mine, Inc. (UCMI) apparently doesn't have copies of their own information, please make a copy of the completion report(both sides of the form)and all of the pages in the final inclination survey printout and send these items via certified mail directly to Mitch Usibelli at UCMI. The AOGCC will not provide confidential information to anyone other than the operator. Please send a transmittal letter with the information that states: At the request of Usibelli Coal Mine, Inc. (UCMI), the AOGCC is providing to UCMI a copy of the completion report and a copy of the final inclination survey information for UCMI's HC No. 1 exploratory well. Under 20 AAC 25.537(d), the AOGCC is holding this information confidential until October 20,2016. Please handle the information accordingly. Patricia, Any thoughts or suggestions? Thanks, Steve D. 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 Steve Davies at 907-793-1224 or steve.daviesPalaska.gov. From: Mitch Usibelli [mailto:musibelliOcomcast.net] Sent: Wednesday, May 27, 2015 1:59 PM To: Davies, Stephen F (DOA); Guhl, Meredith D (DOA) Subject: Completion Report for HC 1 Steve and Meredith, Do you have a copy of the final Completion Report for HC#1 you could send me? Heather Heusser and Kelsey Tucker at ADNR have requested some information while working on a tax credit application for HC#1. This includes requesting a copy of the final Completion Report and a copy of any Directional Survey. I've let them know we attained a Variance to the Directional Survey in advance and assume that would also be reflected in the Completion Report. Please let me know if you have any questions. Thank you. • • Mitch Mitchel D. Usibelli License Representative Usibelli Coal Mine, Inc. musibelli@comcast.net (206) 546-2691 (wk) (206)999-5665 (cell) 2 Guhl, Meredith D (DOA) From: Mitch Usibelli [musibelli@comcast.net] Sent: Wednesday, May 27, 2015 1:59 PM To: Davies, Stephen F (DOA); Guhl, Meredith D (DOA) Subject: Completion Report for HC 1 Steve and Meredith, Do you have a copy of the final Completion Report for HC #1 you could send me? Heather Heusser and Kelsey Tucker at ADNR have requested some information while working on a tax credit application for HC#1. This includes requesting a copy of the final Completion Report and a copy of any Directional Survey. I've let them know we attained a Variance to the Directional Survey in advance and assume that would also be reflected in the Completion Report. Please let me know if you have any questions. Thank you. Mitch Mitchel D. Usibelli License Representative Usibelli Coal Mine, Inc. musibelli@comcast.net (206) 546-2691 (wk) (206) 999-5665 (cell) 1 • • RECEIVED DEC 1 7 2014 Usibelli Coal Mine, Inc. /►OGCC P.O. Box 1000 �"1 Healy,Alaska 99743 Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave,Suite 100,Anchorage, AK 99501 meredith.guhlPalaska.gov Direct: (907) 793-1235 RE: Usibelli Coal Mine, Inc Healy Creek Exploration Project (Gas Only) Well Name: HC# PTD: 214 122(314 523) Miss Meredith Attached is a list of deliverables included in the packet you have opened. If anything is in error or missing please let me know. We appreciate your help on this and apologize for the inconvenience of inadequate submission previously. Respectfully Xv7; Stephen F. Hennigan for UCM • List of Deliverables 12/15/2014 Envelope 1 1. Signed 10-407 with deliverables(original and one copy) a. Wellbore schematic b. Summary of daily reports c. Final as-drilled well location plat d. Pictures of abandonment plugs, etc 2. Mud Log final report—Acme 3. Pictures of whole cores in storage Envelope 2 4. Complete set of electronic logs—Century 5. Complete mud log—Acme Envelope 3 6. CD(original and a copy)containing a. Electronic 10-407 and deliverables b. Electronic logs in tif and las,AND directional in excel-Century c. Mud log in tif and las-Acme d. Mud loggers final report in pdf-Acme e. Handwritten "Field Coal Seam Descriptions"-Acme f. Pics of whole cores(L= label, C=core) in storage NOTE: Dry mud logging samples have already been delivered. Conventional core chips being collected for delivery. ✓fieV STATE OF ALASKA ALA.OIL AND GAS CONSERVATION COMMON WELL COMPLETION OR RECOMPLETION REPORT AND LOG la.Well Status: Oil❑ Gas ❑ SPLUG ❑ Other ❑ Abandoned Q - Suspended❑ lb.Well Class: 20AAC 25.105 2OMC 25.110 Development ❑ Exploratory ❑, • GINJ ❑ WNJ❑ WAG ❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number/(Sundry Number): Usibelli Coal Mine,Inc. . ( Aband) 9/20/2014 . 214 122(314 523) 3.Address: 6.Date Spudded: 13.API Number: P.O.Box 1000, Healy,AK 99743 9/12/2014 50-105-200001-00-00 4a. Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2281'FSL&1300'FEL Sec 16 12s 6w 9/17/2014 HC #1 • Top of Productive Horizon: 8.KB(ft above MSL): 2041 15.Field/Pool(s): ± 2281'FSL&1300'FEL Sec 16 12s 6w GL(ft above MSL): 2031 Healy Creek Exploration Project(Gas Only) Total Depth: 9.Plug Back Depth(MD+TVD): ± 1899est'FSL&1311 est'FEL Sec 16 12s 6w -4/-4 4b.Location of Well(State Base Plane Coordinates,NAD 27):/51h ii, [f 10.Total Depth(MD+ND): 16.Property Designation: Surface: x- 705120.29 • y- 3609915.62 ,y4' Zone- , M • ±1278.5/±1167 . ADL 390606 TPI: x- 705120.29 est y- 3609915.62 est Zone- FM 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 705109.42 est y-3609534.072 est Zone- FM na 18.Directional Survey: Yes ❑✓ No ❑ 19.Water Depth,if Offshore: 20.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) na (ft MSL) NA 21.Logs Obtained(List all logs here and submit electronic and printed information per 20AAC25.071): 22.Re-drilVLateral Top Wndow MD/TVD: mudlog,temp,deviation,DIL,CDL,dip 23. CASING,LINER AND CEMENTING RECORD WT.PER SETTING DEPTH MD SETTING DEPTH ND AMOUNT CASING GRADE TOP BOTTOM TOP BOTTOM HOLE SIZE CEMENTING RECORD PULLED 9.625 40 N80 0 134 0 134 Driven Driven 120 0 TD 0 0 1278.5 0 1278.5 8.5 nana 0 0 0 0 0 0 0 0 na 0 0 0 0 0 0 0 0 na 0 0 0 0 0 0 0 0 na 0 0 0 0 0 0 0 0 na 24.Open to production or injection? Yes ❑ No ❑✓ • 25. TUBING RECORD If Yes, list each interval open(MD+TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): 0 0 0'MD 0'ND RECEIVED 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. Was hydraulic fracturing used during completion? Yes❑ No ❑ DEC 2014 DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED AOGCC 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): na/P&A Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil 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❑✓ No❑ Sidewall Cores Acquired? Yes❑ No❑✓ , 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. Form Cored MD TVD Core length Lith(See mud lop) Hydrocarbon/Water Coal Seam 4 700' 682' 722-36 Coal slight gas Coal Seam 2 980' 929' 984.5-998.6 Coal slight gas Coal Seam 1 1152' 1062' 1173-89 Coal slight gas See Usibelli+HC-1+Geologic+Field+Report - 1189-1200.7 Coal slight gas AND Field Coal Seam Descriptions 1200.7-1216 Coal slight gas Form 10-407 Revised 10/2012 CONTINUED ON REVERSE .Z-3-I(-Submit original only • 29. GEOLOGIC MARKERS (List all formations and markers encountered): 30. FORMATION TESTS NAME MD TVD Well tested? j res [lo . If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if needed, Permafrost-Top na na and submit detailed test information per 20 AAC 25.071. Permafrost-Base na na quaternary grvl 5 5 Lignite Creek FM est 50 50 Top Usibelli est 125 125 Casing 1 134 134 Coal Seam 6-Suntrana FM 200 200 Coal Seam 5 305 304 Coal Seam 4 700 682 Coal Seam 3 870 837 Coal Seam 2 980 929 Coal Seam 1 1152 1062 Healy Creek FM?? 1254 1143 est TD 1278.5 1167 est Formation at total depth: 1279 . 1167 est 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stephen Hennigan 337 849-5345 Email: shenniaanCd).oeiinc.com Printed Name: Stephen F. Hennigan Title: Consulting Proj Mgr/Engr for UCM Signature:.57e/j/...0.---. ..7+471✓71e Phone: (337)849-5345 Date: 10/9/2014 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 Usibelli Coal Mine, Inc. 0 • HC # 1 • Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) Denalli Borough 0 Alaska Ser#.:214 122 USDW:' na Est Rkb-msl Ik Drive Sz» 95/8" 0' Pilot Hole na 8.3 8.8 11.3 124'pen i4' 0#N80 ROPIGas log Cond/Dri - .TD. = = *335 BAIL,-NC C "y PLU 15-300°t J WELDED PLATE 9'BGL = — ( 0° BALANCEDflu VIS tiEL PI.L 446°-350' NOTE: Mix cement to fill casing f/8'bgl—to 4'bgl(the top of casing) = _ E. OPEN RULE E 9.5 Fieri WB MUD ±2U'4l"BALANCI&D ctmtiNT PLU 1276.b-1051* BBB Tagged cement w/50001#down weight @ 1051' . = TOC 1051' 8 1/2" 8.3 9.5 0.0 1279'_. J._TD ±1167 ti F� 'do F iA Zi/��S GRID NORTH N \--1 BASE-1 Z°�° ,� 1,300'± TO EAST Q LINE SECTION 16 30" Rebar / N 6, W/2" Sury Cap l HC #1 I2035 As—Built 09/24/14 NAD27, ASP ZONE 4 ti° 56 N. 3,609,915.62 `10.1oN\'4 E. 705,120.29 4011' 0 F �II Lat. 63' 52' 22.502" Long. 148' 43' 40.513" �Q;.° °C.°S /h NAD83, ASP ZONE 4 j* 49Th °°9 vii N. 3,609,676.65 /°°°op . / E. 1,845,158.03 0, CM� S I/ Lat. 63' 52' 20.868" �`j—' Long. 148' 43' 48.860" Elev. 2031.3 NAVD88 GEOID 12A ' oTIM TH S. VENECHUK•.e j Drill Hole Collar ® Ground Level. 2,281'± TO SOUTH - ,��,'tj,°°°° LS 7424 °..°,,, = LINE SECTION 16 / °O°.°°°°°°°° �i 1dier 11%'` \io L•��w SE 1/4, Sec. 16, NOTES: T12S, R6 W, FM, AK. DETERMINEDFBYA NHZL NGS OPUS SOLUTION FROM AND VERTICALONTAL WAS BASE STATIONS, "FAI1 FAIRBANKS PID DK4095", GRNX AKDA PID DL6471", DRILL PAD AS—BUILT "AC75 USIBELLI ENERGY, PIC DBASE —' i ,O ALASKADSTATERVED JUNE 29,PLANE 2014ONAD8FOR 0.50 ACRES ZO 3E60, EPOCH 2010 DATUM. E. 1,845,048.439 Elevation: 2030.59 GEOID 12A, NAVD88 DATUM. SCALE: 1"= 50' 2.) SECTION LINE OFFSETS WERE DETERMINED BY PROTRACTION 0 50 100 FEET FROM PREVIOUSLY LOCATED NEARBY SECTION CORNERS AND UTILIZING RECORD INFORMATION DERVIED FROM THE I ORIGINAL GLO—BLM SURVEY NOTES AND TOWNSHIP PLATS. USIBELLI COAL MINE, INC. PROJECT REVISION , P.O. Box 1000 HEALY CREEK EXPLORATION PROJECT DATE: 9/28/14 HEALY BASIN GAS—ONLY SCALE: 1"= 50' Healy, Alaska 99743 EXPLORATION LICENSE ADL No.390606 PROJ. No. Interior Surveying & Mapping BOOK No. T.S. Venechuk PLS LOCATION SE1/4, Sec.16, T12S, R6W, SHEET P.O. Box 338, Healy, AK 99743 Fairbanks Meridian, Alaska 1 of 1 • • • Usibelli Coal Mine, Inc. HC #1 ,1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) .'_r Denalli Borough Alaska Ser#.:214 122 2231'FSL&1310'FEL Sec 16 12s 6w 9/7/2014 Moiblize rig to location. Begin rig up. Continue to drive conductor. Drill mousehole. 9/8/2014 Drive and drill w/MW Drilling f/60-124'; Dead drive 5' ;Test t/300 psi w/air; Unload trailers; Bevel 9 5/8" Csg;Work on Tp trailer;test run generator; Install cellar and conductor plate; ' R/U light plant and welding equipment Mark/Cut/and Dress 9 5/8"csg head ; Set head ;Level and pre-heat to 300; Weld Head 9/9/2014 Blade pad; Lay felt&Pit liner w/both crews[windy]; 1030hrs night crew off Lay Matting boards Spot carrier; Pitts; Pump and boiler;Combo building; Fuel Tank; Spot Choke house;catwalk; BOP Skid; Dumpster; Unload trailers; R.U. lights and service lines Level Carrier and start bearming Con't R.U. Poor boy Degasser; Bearm;Handrails and service lines 9/10/2014 SPOT PARTS CONNEX INSPECT DERRICK; HOLD SAFETY MTG; RAISE DERRICK; BUILD BEARM; INSTALL P.V.T. CON'T INSTALLING PVT;BUILDING BEARM;TOTAL SAFETY INSTALLING GA DETECTORS; RIGGING UP MUD LOGGERS; FILL PITS W/H2O; FILL WELL W/H2O;STAGE BOPE. N.U. BOPE; DSA;MUD-X;2 KILL VALVES;MAN CHOKE; HCR;ANNULAR;CHOKE LINES RU ACCUMLATOR; FAB FLOW LINE AND NIPPLE;CON'T W/CHOKE LINES 9/11/2014 Cont N.U. BOPE;&WK ON FLOW RISER;WK ON BEARM; CON'T FAB FLOW LINE; HOOKUP TRIP TANK; RAISE DERRICK WIND WALLS;P.U. POWER SWIVEL; INSTALL MOUSE HOLE; RU AND CHARGE KOOMEY;WELD BIT BREAKER;INSTALL PANIC LINE; GRADE FOR SIDE DUMP; BEARM PITTS; R.U.TEST EQUIPMENT; DIVERTER SHELL TEST TO 100 PSI/5MIN;ACCUMLATOR DRAW DOWN TEST; RD TEST EQUIPMENT LINE UP STACK RACK;STRAP&TALLY BHA&P.U.;WK ON LEAKING FLOW NIPPLE AND SIDE DUMP; REPAIR QUADCO; R.U.STAND PIPE AND POWER SWIVEL STATIC LINES; BREAK CIRC; WASH AND REAM F/124'TO 144'TAG @ 134'= 124' +10.7 RKB 9/12/2014 R.U. PERFORM F.I.T.T/100 PSI F/10MINS.TVD 144;TEST FLUID 9.ppg;vis 38; Mud wt.equivalent 13.4ppg Drlg f/144'to 288' DrIg.f/288'to442' Transfer fluid f/cuttings tank t/pits DrIg.f/442-475'check drilling break @ 435'and 470' DrIg.f/475'-642' UP WT 10K ROT 9K 1-3K ON BIT 9/13/2014 Drlg f/642'-663' Empty cuttings tank Attempt to Drlg f/663' POOH f/663'V Bit C/O Bit and Bit Sub(Service Rig) TIH t/263'Tag LD 2 jts. PU Swivel Ream f/263-663' Drlg f/663'-703' DRLG.f/703-722'circ. Looking for core point Verify Core point LD Jt set Swivel back POOH and break bit 1/8"out of gauge PU Core Barrell and TIH 9/14/2014 Break Circ.w/Core Barrel&P.U,single P.0 3 JTs.V 722'Core Point Core f/722'V 736' POOH f/736'w/core ' Break Core Barrel apart and remove core Break Bit off 6"DC[not chambered for float)LD DC PU bit#3 and BHA RIH V 150'tight wk.through Work pipe thru tight spots f/150't/633' PU Swivel Wash f/633't 722' Wash&Ream out core f/722'V736' Drlg f/736't 820' 9/15/2014 SET SWIVEL BACK&POOH F/985' P.U.CORE BARRELL RIH T/935' LD 2 JTS. PU SWIVEL WASH ' F/935T 985' .CORE F/985'T 1000'. PU SWIVEL WASH F/935T 985' CORE F/985'T 1000' POOH W/CORE#2 BD CORE BARRELL&CK CORE#2 PU BIT AND RIH 956' PU SWIVEL WASH AND REAM F/956'T 1000' DRLG F/1000'T/1090' • • Usibelli Coal Mine, Inc. HC #1 .44 Block/Sec 16 125 6w ,,. Healy Creek Exploration Project(Gas Only) 9/16/2014 Drlg f/1090'—t/1173' CBU SET SWIVEL BACK&POOH P/U CORE BARRELL RIH t/1123' PU SWIVEL WASH f/1123'—t/1174' Core#2 f/1174'—t/1189' POOH&L/D Core Bbl Break down&empty core bbl, Recovered 15'of core,Changed oil in carrier engine& service rig M/U Core Bbl&RIH t/1149',Wash t/1189'.Core#3 f/1189'—U 1200' POOH&L/D Core Bbl, Retrieved 10.7'of core,M/U Core Bbl&RIH M/U Core Bbl#4&RIH U 1170'Wash U 1200', Core#4f/1200'—U 1205' 9/17/2014 Core#4 f/1205'—U 1214' POOH&L/D Core Bbl, Retrieved 10.7'of core Service Rig M/U Bit#3 RR&BHA, RIH U 1175',Work tight hole 1014'—1046' Ream Core hole f/1174'—U 1214' DrIg f/1214' —U 1228', Got out of coal and into clay, Repair charge pump on mud pump—packing blew out, Repair power swivel— would not go forward DrIg f/1228'—U 1265', Drlg break @1247' Circ hole clean for wireline logs. POOH, Wipe tight hole f/1265'—U 1000', L/D bit R/U wireline Run#1 —Gamma stopped @ 1105' 9/18/2014 Cont w/Run#1 -Gamma Run_#2—Dual Induction L/D HWDP < RIH open ended forr cementing U 1265', no fill. Circ &Condition mud&Rig up Haliburton PJSM, Pump cmt plug#1 der' ✓�,d� —Fill lines,Test lines U 2000 psi, Pump 8 bbl water spacer,21.4 bbls 13 ppg Cmt, Displace w/1.1 bbls water, u 5.8 Bbl mud,CIP 2330 hrs POOH U 9000' Pump wiper plug. Wait on cement 9/19/2014 Wait on cement Wash down&Tagged cement w/5000#down weight @ 1051' Circ POOH laying down drillpipe V 446' Mix&spot Hi-Vis pill f/446'—U 350' POOH U 350' PJSM, Pump 30 Bbls of 13 ppg cement plug f/350'—U surface L/D Drillpipe Drain&rinse BOPs, &cellar area, R/D floor, L/D Swivel. Nipple down BOPs, Choke&kill lines RD—Driller's house, koomey&choke control panels, beaver slide 9/20/2014 Rig Down—Clean&anjust work platform for rig move Rig down—Load out mud, R/D choke house&derrick board,Scope down&lay over mast R/D—Clean cellar,cut off wellhead&conductor pipe 4' below ground level, Prep for load-out, Pickle mud pump, load out choke house&mud pits R/D—Clean pits,drain centrifugal pumps, Prep for load-out of rig, Mix cement to fill casing f/8'—t/4'the top of casing • 9/21/2014 Rig Down—Set out Pump room,boiler house,fuel tank, carrier&combo skid, Load-out 6 trailers, Pick up liner&felt,moved carrier off of hill,Weld on Dry Hole marker Finish cleaning pits at 0600 hrs, 9-21-14 Rig released to standby rate Start reducing crews 9/22/2014-9/30/2014 Continue rig down and demobe. See pictures 4a 20140921_080623 Cement at Surface L 5 4b 20140921_131940 Welded Plate 4c Cellar Removal 4d Pad backfilled See final as-built plat 4 UE Cripple Creek Pad As-BIt 092414 , • • , '-,x 3 4 . r.. tet i. f . QU U co ., i N ....,,„;m„.4,„, 114:'—'4.,,' ''''''''' „. ._., ..,.,.,,, U co ,. N lfl � O 00 T N 0) O ,1 O N co g ,� 9 • .. , ..: .• , . . . -41.-",1:".,-. -- .:*.",.... yJ �w= yM� ::4:l:17:.i:: ''"""'' 'I'r'j:'*:j,,...'';e'''''.:::Iri:i;7 14,..'-...1 9:14.77.7.1"1":„....:: .- • --iv:---T-3.- ....:-,--,-,,,.....,,,...,.........„ vitjel � r { �m' 'TwY��,t'y L'' `y, Y' t,'y^ m ±h .„:,;-„,--4,.... ,,t‘z,-...-.....:--,: it, , _ . , _ ,... . : ..*: , a „..'•, CU a--+ co N :• •. . it . . ... --,eb. .i..- N- ... ,. .... CU 4. Owl +.} e lik E m NJ . 0, 01 O 171.O N • • 0 E v .4100 ed 400 ,:114100/30, 4000,10 v � $3 0 0 < � � „ # } S . \ , , . . , » § § / . : \: \ \ «~ \ \ i \ \ Z " r ii \\ � :� \ � . « � � /\ ''‘,It \ C . . f ` $ ® } ' \/ 9 . ` � U > \ CU , . .. co _ . \ \ , « 0 - iiii. 7 . . . . y 9 t/ I y ƒ j f t \/. « «. . } ! . \ ‘{ N • 410 PLAN VIEW COMPU-LOG DEVIATION CLIENT: USIBELLI COAL MINE INC. SCALE: 150 FT/IN LOCATION: HEALYTRUE DEPTH: 1087.74 FT HOLE ID: HC#1 AZIMUTH: 181.6 DATE OF LOG: 09/18/14 DISTANCE: 381.7 FT PROBE: 9412A 2761 MAG DECL: 27.5 + = 100 FT INCR ° = BOTTOM OF HOLE N 450. OFT 300.0FT 150.0 W111416kfr 111 ; E S * * * * * * * COMPU-LOG - VERTICAL DEVIATION * * * * * * * CLIENT : USIBELLI COAL MINE HOLE ID. : HC#1 FIELD OFFICE : NA DATE OF LOG : 09/18/14 DATA FROM : 16 PROBE : 9412A , 2761 MAG. DECL. 27.500 DEPTH UNITS : FEET LOG: HC#1_09-18-14_12-02_9412A . 02_102.89_1189.32 DEVI.log CABLE DEPTH TRUE DEPTH NORTH DEV. EAST DEV. DISTANCE AZIMUTH SANG SANGB 120.00 119.99 0.26 -0.04 0.3 351.7 1.4 4.0 130.00 129.98 0.50 -0.06 0.5 353.7 1.9 160.2 140.00 139.98 0.49 -0.21 0.5 337.5 1.9 230.4 150.00 149.97 0.28 -0.50 0.6 298.9 2.3 243.2 160.00 159.96 0.10 -0.91 0.9 276.5 2.5 243.9 170.00 169.95 -0.07 -1.38 1.4 267.2 3.4 257.3 180.00 179.93 -0.19 -1.98 2.0 264.6 3.8 260.8 190.00 189.90 -0.31 -2.67 2.7 263.4 4.1 259.4 200.00 199.88 -0.52 -3.41 3.5 261.3 4.6 249.7 210.00 209,84 -0.86 -4.18 4.3 258.3 5.1 240.4 220.00 219.79 -1.37 -4.98 5.2 254.6 5.8 235.2 230.00 229.74 -1.99 -5.78 6.1 251.0 6.1 230.7 240.00 239.68 -2.74 -6.58 7.1 247.4 6.3 224.1 250.00 249.61 -3.58 -7.44 8.3 244.3 7.3 226.0 260.00 259.52 -4.52 -8.34 9.5 241.5 7.6 221.6 270.00 269.43 -5.59 -9.21 10.8 238.7 8.3 218.1 280.00 279.32 -6.76 -10.11 12.2 236.3 8.8 216.7 290.00 289.20 -7.99 -11.00 13.6 234.0 9.1 213.9 300.00 299.07 -9.38 -11.87 15.1 231.7 10.1 209.5 310.00 308.91 -10.92 -12.77 16.8 229.5 10.6 208.9 320.00 318.73 -12.54 -13.68 18.6 227.5 10.9 207.4 330.00 328.54 -14.25 -14.60 20.4 225.7 11.5 208.2 340.00 338.34 -16.05 -15.52 22.3 224.0 11.9 205.2 350.00 348.11 -17.93 -16.43 24.3 222.5 12.4 204.9 360.00 357.87 -19.93 -17.35 26.4 221.0 12.8 204.6 370.00 367.62 -21.93 -18.27 28.5 219.8 12.9 203.6 380.00 377.37 -24.01 -19.15 30.7 218.6 13.3 201.8 390.00 387.09 -26.18 -19.98 32 .9 217.3 13.6 200.4 400.00 396.80 -28.43 -20.80 35.2 216,2 14,2 199.7 410.00 406.48 -30.79 -21.64 37.6 215.1 14.8 198.6 420.00 416.14 -33.25 -22.48 40.1 214.1 15.4 199.0 430.00 425.76 -35.83 -23.33 42.8 213.1 15.8 198.4 440.00 435.39 -38.38 -24.19 45.4 212.2 15.3 197.5 450.00 445.03 -40.90 -25.04 48 .0 211.5 15.4 199.4 460.00 454.67 -43.45 -25.85 50 .6 210.8 15.7 196.8 470.00 464.30 -46.00 -26.64 53.2 210.1 15.4 196.4 480.00 473.94 -48.57 -27.39 55.8 209.4 15.7 195.6 490.00 483.55 -51.24 -28.09 58 .4 208.7 16.4 193.4 500.00 493.13 -54.01 -28.81 61.2 208.1 16.7 195.5 510.00 502.69 -56.85 -29.56 64 .1 207.5 17.3 194.7 520.00 512.24 -59.72 -30.33 67.0 206.9 17.5 194.9 530.00 521.77 -62.66 -31.07 69 .9 206.4 17.8 192.9 540.00 531.27 -65.69 -31.79 73.0 205.8 18.8 192.8 550.00 540.73 -68.82 -32.62 76 .2 205.4 18.9 196.1 560.00 550.19 -71.93 -33.54 79 .4 205.0 18.8 196.9 570.00 559.66 -75.02 -34.43 82.5 204.7 18.9 195.0 580.00 569.12 -78.15 -35.30 85.8 204.3 19.0 195.3 590.00 578.55 -81.39 -36.10 89 .0 203.9 19.7 193.7 600.00 587.96 -84.68 -36.80 92.3 203.5 19.8 191.7 610.00 597.36 -88.05 -37.41 95.7 203.0 20.4 188.9 620.00 606.72 -91.52 -37.91 99 .1 202.5 20.6 187.2 630.00 616.08 -95.03 -38.29 102.5 201.9 20.7 185.4 640.00 625.42 -98.58 -38.59 105.9 201.4 21.2 184.7 650.00 634.73 -102.23 -38.84 109 .4 200.8 21.3 184.5 660.00 644.07 -1 .79 -39.13 112.8 200 20.7 184.5 670.00 653.43 1 30 -39.45 116.2 199 20.7 185.8 680.00 662.79 1 .80 -39.75 119.6 199. 20.4 185.2 690.00 672.18 -116.23 -40.04 122.9 199.0 20.1 185.6 700.00 681.57 -119.66 -40.40 126 .3 198.7 20.3 186.1 710.00 690.93 -123.15 -40.82 129 .7 198.3 20.6 187.7 720.00 700.30 -126.61 -41.21 133.2 198.0 20.4 186.6 730.00 709.66 -130.10 -41.61 136.6 197.7 20.7 186.7 740.00 719.00 -133.67 -41.95 140.1 197.4 21.6 184.2 750.00 728.31 -137.30 -42.23 143.7 197.1 21.6 184.8 760.00 737.59 -141.02 -42.52 147 .3 196.8 22.1 182.5 770.00 746.84 -144.81 -42.70 151.0 196.4 22.6 181.8 780.00 756.06 -148.69 -42.84 154.7 196.1 23.3 181.2 790.00 765.21 -152.71 -42.91 158.6 195.7 24.0 181.2 800.00 774.32 -156.84 -42.99 162.6 195.3 24.7 182.1 810.00 783.37 -161.09 -43.11 166.8 195.0 25.8 178.1 820.00 792.35 -165.49 -42.97 171.0 194.6 26.4 177.8 830.00 801.30 -169.94 -42.83 175.3 194.1 26.4 179.6 840.00 810.23 -174.44 -42.69 179.6 193.8 27.1 177.4 850.00 819.11 -179.03 -42.44 184.0 193.3 27.6 176.1 860.00 827.94 -183.71 -42.09 188.5 192.9 28.3 175.2 870.00 836.72 -188.48 -41.68 193.0 192.5 28.8 174.6 880.00 845.46 -193.31 -41.20 197.7 192.0 29.4 174.7 890.00 854.15 -198.24 -40.74 202 .4 191.6 29.9 175.1 900.00 862.79 -203.25 -40.27 207 .2 191.2 30.5 174.7 910.00 871.37 -208.37 -39.75 212.1 190.8 31.3 174.6 920.00 879.88 -213.59 -39.16 217.1 190.4 32.0 174.0 930.00 888.31 -218.92 -38.54 222.3 190.0 32.9 172.5 940.00 896.66 -224.39 -37.90 227.6 189.6 33.9 172.5 950.00 904.92 -229.98 -37.15 233.0 189.2 34.8 172.9 960.00 913.08 -235.71 -36.41 238.5 188.8 35.9 172.8 970.00 921.13 -241.56 -35.48 244 .2 188.4 36.9 170.5 980.00 929.12 -247.50 -34.48 249 .9 187.9 37.1 169.8 990.00 937.08 -253.47 -33.47 255.7 187.5 37.3 169.9 1000.00 945.04 -259.42 -32.39 261.4 187.1 37.3 170.4 1010.00 952.98 -265.41 -31.37 267 .3 186.7 37.4 170.7 1020.00 960.92 -271.40 -30.34 273.1 186.4 37.4 170.4 1030.00 968.85 -277.40 -29.28 278.9 186.0 37.6 170.5 1040.00 976.75 -283.44 -28.19 284.8 185.7 38.0 170.0 1050.00 984.61 -289.52 -27.06 290.8 185.3 38.4 169.7 1060.00 992.40 -295.68 -25.95 296.8 185.0 39.1 170.4 1070.00 1000.14 -301.91 -24.82 302.9 184.7 39.3 170.1 1080.00 1007.87 -308.16 -23.73 309.1 184.4 39.6 169.8 1090.00 1015.55 -314.47 -22.62 315.3 184.1 40.1 171.0 1100.00 1023.17 -320.84 -21.50 321.6 183.8 40.7 169.3 1110.00 1030.73 -327.29 -20.35 327 .9 183.6 41.1 169.5 1120.00 1038.23 -333.80 -19.22 334 .4 183.3 41.7 171.2 1130.00 1045.67 -340.39 -18.11 340.9 183.0 42.2 171.6 1140.00 1053.02 -347.08 -17.00 347 .5 182.8 43.3 170.1 1150.00 1060.26 -353.87 -15.80 354.2 182.6 44.1 171.5 1160.00 1067.36 -360.80 -14.55 361.1 182.3 45.3 170.4 1170.00 1074.33 -367.85 -13.25 368 .1 182.1 46.2 169.7 1180.00 1081.25 -374.96 -11.97 375.2 181.8 46.1 169.8 1189.32 1087.71 -381.52 -10.87 381.7 181.6 45.4 176.4 i t .fii: .. 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' .:1 - r ^ a ow ... , , 4N t 31 £Y�.wg�"A aI 9 ;k e..,`'''',-,1; 'yk, 410,t!d 1 t A, • • } 3 3. -ms s 4 ([( y{ 13 0 n w i ,, ''*4. '* \ ',76'4,-/P.i. ' :, f 4� � g . ::kl'm''',. ,. . 0w f 5, 3 X #., * ., ,t. '' z..,,,„,:„-.: . \.2,,,';:„,., ',.4.,!-.,,,110,.,s; .- , ,,,,::'*k•...,.,i,kJ ,-,-..,;:,":: :,--,- ::::;,;.,,t!...,,-;.„,,,,..;;,-,,,L,,,,,,,,,,,,.=.,..:‘,71-!;6,.;v.,:.- . ' ;) n. ',� ,« f5 _.. :.k, .,., F 4s. .. ,,,,....... ,. :,,, .. ... , 4 ..f, +kr:- ,,(.,,,,,,..: s , 5 4 ?3 I k i .,,-...,,4,...::,,,,,,,,,, -.. — ,� z' �� ' �, a ,. e x.fi» '� sex �� #�, :* , 'ti . . ,,,.,',‘„,:::!:.',. x. {f a -1,41r,':,,,..,'''',11;-°'-',. � y rt '7) w4 ti ' 2 a • ' -'4'.,„ '"...''''''t s. N>r. gwy.� ..: a,.." ' t. ‘. 1,'... ..•' ''''. 0 r F • ON IL 41 - ' I11 i ,. 4i44.....) a • , , ',' �. 411.61:17 .4°1114 , . f _ , CN 1 9x y k' is f ..i.-1".!..1,1,1;' ��< r� a. l lk • i N k ti Plitit,"AI -4'.--.' ' • E ,Y )tE� t ''-' ,. } ry 't it T 4. / . 1 F • 4 —w ... a • ! ..,. . . . . , } ,,,,.. ,,„ , t m ,-..,,,,,,I..4, .. t , * F" It % v :xv „r. A‘if \❑ V • " „`_ #tet , ". , A ,, ,,,,;-__:, i.,,-,, \it - x _ , .. - _,,,_ ,.., ..., ...11 r_ u _. -,,,,, * I -a * ti a `^ .. »,., ;t, ❑ i*mo , '''',1 \ / ❑ 4 , .4._...„. vie_ ,,,, N 4 I 1/111111', gli girk gib r'; air��' r Ae ,.. g gfV f✓ r� grommo 401144 74--!"';',14t4 4�'' ea. 44;44 zx 4 + r A"S d k 4 .* r i d Via, • • Davies, Stephen F (DOA) From: Davies, Stephen F (DOA) Sent: Tuesday, December 02, 2014 11:45 AM To: 'Stephen Hennigan' Cc: Schwartz,Guy L (DOA); Bettis, Patricia K (DOA); Guhl, Meredith D (DOA) Subject: RE: 10-407 Report and data for HC 1, PTD 214-122 Steve, This note follows up on Meredith's request of Nov. 21 (attached below) for required information that is needed to complete the HC 1 well file. My quick check of the well file shows only the Well Completion Report form (Form 10- 407),the Daily Operations Summary, a mud log, a geologic wellsite report,five well logs, and one DVD, all of which were submitted before Meredith's email of Nov. 21. Please provide all of the information requested by Meredith, below by December 20`h, which is 90 days after the abandonment date. In addition, please submit a revised Well Completion Report form. AOGCC requires an original signature on all forms. Please fill out the Well Completion Report form using black text as colored text does not scan well for AOGCC's permanent document image records. Cored intervals must be listed and brief lithology/ HC show descriptions provided in the "Core Data" portion of the form (in Box 28; attach additional sheets if needed-instructions are provided in that box on the form) rather than in the "Formation Tests" section of the form. Please list any intervals and formations tested in the "Formation Tests" section as described in Box 30 on the form. Please let me know if you have any questions or if I can help further. Regards, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Friday, November 21, 2014 2:43 PM To: Guhl, Meredith D (DOA) Cc: Schwartz, Guy L(DOA);Davies, Stephen F (DOA); Bettis, Patricia K (DOA) Subject: RE: 10-407 Report and data for HC 1, PTD 214-122 Meredith 1 I am so sorry—most of the info waswarded on to Bill for completion and subsion. I will take care of getting it together. 7 r��aa acrd Aaac a Mend dad/ Stephen F. Hennigan Project Engineer/Manager 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 lit: 337-984-2603 n: 337-849-5345 (mobile) if.,5,..tst Petroleum of,M0 SIERRA ‘tk°;l-IdsEngineers '%4i'I qB• tr• HAMILTON Sierra-Hamilton Confidentiality Notice:The information transmitted is intended only for the person(s)or entity to which it is addressed. It may contain confidential and/or privileged information or material.Any review, retransmission,dissemination to other use of,or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you received this in error,please contact the sender and delete the material from any computer. From: Guhl, Meredith D (DOA) [mailto:meredith.guhl@alaska.gov] Sent: Friday, November 21, 2014 5:13 PM To: Stephen Hennigan Cc: Schwartz, Guy L (DOA); Davies, Stephen F (DOA); Bettis, Patricia K (DOA) Subject: 10-407 Report and data for HC 1, PTD 214-122 Hello Stephen, I'm reviewing the 10-407 form submitted for HC 1, PTD 214-122, completed on 9/20/2014.There are several issues with the 10-407 packet and data as submitted. As you know,the 10-407 form is designed to be a brief summary of the well as completed. 1. The coordinates for the surface location of the well in box 4a do not match the location "as-staked" plat previously supplied. Please provide an updated plat which reflects the current and true location of the well. 2. No wellbore schematic was included in the packet. 3. No daily drilling summaries were included in the packet. 4. Box 21, "Logs Obtained" was left blank. 5. Box 31, "List of attachments" was left blank. 6. "Formation At Total" depth in box 29 was left blank. 7. The 10-407 form lacks an original signature. 8. The 10-407 form does not include the formations and intervals cored in box 28,where they should be listed, along with a brief summary of the lithology and presence of oil,gas or water.Separate sheets are acceptable. Core depths are listed under box 30 which is the incorrect location. 9. Color is used in box 29 for some of the geologic markers. Please fill out the form only in black ink. 10. Per 20 AAC 25.071 (b) (3) and (4), because conventional core was acquired,the following items are required to be submitted to the AOGCC: a. Core chips b. Core photographs c. Copies of any analyses performed on the core 2 d. Core descriptions • S On the data CD also included in the packet, the following items were not included: 1. No .pdf and .las file for the mudlog is included. 2. No digital directional survey information is provided in ASCII or .xlsx format. 3. No .las file is provided for the Gamma-Temp log. 4. The dipmeter log accordion print is the 5" log.The digital copy provided is the 10" log. If both were created, both need to be provided in digital and paper format.The paper log provided also lacks the bottom 70' recorded on the digital log and also lacks the tool description. 5. The Gamma-Res-Density paper log does not match the digital version .tif version provided but does match the .pdf version. Multiple versions of what should be an identical log from digital file to digital file needs to be corrected. 6. The same issue exists with the dual induction log.The paper log does not match the .tif file but it does match the .pdf file. Please submit an updated,complete 10-407 form, along with the required information, by 12/20/2014. If you have any questions, please contact me. Regards, Meredith Meredith Guhl Petroleum Geology Assistant Alaska Oil and Gas Conservation Commission 333 W. 7th Ave, Suite 100, Anchorage, AK 99501 meredith.guhl(a@alaska.gov Direct: (907) 793-1235 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 Meredith Guhl at 907-793-1235 or meredith.guhl@alaska.gov. 3 RECEIVED STATE OF ALASKA ALAIOA OIL AND GAS CONSERVATION COM SION OCT .2 3 2014 WELL ELL COMPLETION OR RECOMPLETION REPORT AND la.Well Statu ❑ Gas ❑ t ❑ Ill Abandoned [ Suspended❑ lb.Well Class: 20AAC 25.105 20AAC 25.110 Development ❑ Exploratory ❑, • GINJ ❑ WINJ❑ WAG❑ WDSPL❑ No.of Completions: Service ❑ Stratigraphic Test ❑ 2.Operator Name: 5.Date Comp.,Susp.,or 12.Permit to Drill Number/(Sundry Number): Usibelli Coal Mine, Inc. Aband.: 9/20/2014 214 122(314 523) , 3.Address: 6.Date Spudded: 13.API Number: P.O.Box 1000, Healy,AK 99743 9/12/2014 50-105-200001-00-00 • 4a.Location of Well(Governmental Section): 7.Date TD Reached: 14.Well Name and Number: Surface: 2281'FSL&1300'FEL Sec 16 12s 6w 9/17/2014 HC #1 . Top of Productive Horizon: 8.KB(ft above MSL): 2041. 15.Field/Pool(s): ± 2281'FSL&1300'FEL Sec 16 12s 6w GL(ft above MSL): 2031 _ Healy Creek Exploration Project(Gas Only) Total Depth: 9. Plug Back Depth(MD+TVD): ± 1899est'FSL&1311est'FEL Sec 16 12s 6w -4/-4 4b.Location of Well(State Base Plane Coordinates,NAD 27): 10.Total Depth(MD+TVD): 16.Property Designation: Surface: x- 705120.259 y- 3609915.62 Zone- FM . 1265/1265 . ADL 390606 • TPI: x- 705120.259 y- 3609915.62 Zone- FM 11.SSSV Depth(MD+TVD): 17.Land Use Permit: Total Depth: x- 705109.259 est y- 3609533.62 est Zone- FM na 18.Directional Survey: Yes U No H 19.Water Depth,if Offshore: :.Thickness of Permafrost MD/TVD: (Submit electronic and printed information per 20 AAC 25.050) na (ft MSL) NA 21. Logs Obtained(List all logs here and submit electronic and printed information per 20AAC 5.071): 22.Re rill/Lateral Top Window MD/TVD: 23. CASING,LINER AND CEMENTIN I-,- •- ./ WT.PER SETTING DEPTH MD SETTING DEPTH ' D 47 AMOUNT CASING FT. GRADE TOP BOTTOM TOP •TTO HOLE S,_E/ CEMENTING RECORD PULLED 9.625 40 N80 0 134 0 134 • Driven '��v Driven 120 0 TD 0 0 1265 0 yt 1265 , t,5/ na na 0 0 0 0 0 0 e 0 .i na 0 0 0 0 0 •' na 0 0 0 0 0 4,/ 0 0 na 0 0 0 0 0 0 ' 0 0 na 24.Open to production or injection? Yes ❑ No Q 25. TUBING RECORD If Yes,list each interval open(MD+TVD of Top and Bottom;Perforation SIZE DEPTH SET(MD) PACKER SET(MD/TVD) Size and Number): f" 0 0 0'MD 0'TVD A10-0 4t14, 1 I ,•. 26. ACID,FRACTURE,CEMENT SQUEEZE,ETC. 1 9��17iq I' Was hydraulic fracturing used during completion? Yes LJ No U V6tffet/ "L ED 4. DEPTH INTERVAL(MD) AMOUNT AND KIND OF MATERIAL USED S\Iv 27. PRODUCTION TEST Date First Production: Method of Operation(Flowing,gas lift,etc.): na/P&A Date of Test: Hours Tested: Production for Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil 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 .❑ No❑ Sidewall Cores Acquired? Yes ] No❑, 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. RBE MS OCT 2 8 2014. -\ 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? UYes U No If yes,list intervals and formations tested, briefly summarizing test results.Attach separate sheets to this form,if Permafrost-Top na na needed,and submit detailed test information per 20 AAC 25.071. Permafrost-Base na na Core Depths(ft): Coal Seam 6-Suntrana FM 200 200 Coal Seam 5 305 304 Coal Seam 4 700 682 722-36 Coal Seam 3 870 837 Coal Seam 2 980 929 984.5-998.6 Coal Seam 1 1152 1062 1173-1189, 1189-1200.7 1200.7-1216 Coal"F" 1233 1135 est Formation at total depth: 1265 1167 est 31. List of Attachments: 32. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stephen Hennigan 337 849-5345 Email: shennigan(a�peiinc.com Printed Name: Stephen F.Henniganp Title: Consulting Proj Mgr/Engr for UCM Signatun0 '+�r 4"'1"--' Phone: (337)849-5345 Date: 10/9/2014 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 ARC 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 21L-t-IZ2 o • • ALASKA EARTH SCIENCES, INC. RECEIVED Items to be delivered to the AOGCC from the Healy Creek Well HC #1: 0 C T 2 3 2014 Well Completion Report and Log Form 10—407 AOGCC One paper copy of the Mud log with Geology, Gas Chromatograph data, Gamma, Bulk Density V and Resistivity plotted. Plus a digital PDF - Geologic Wellsite Report Which includes gas desorption data, detailed description of coals and pictures of coal samples. Plus a digital PDF A complete set of all drill cuttings sampled at 5 foot intervals down the well. — 503 One paper copy of all of the geophysical surveys Compensated Density log, Dipmeter log, Dual , Induction SP log, Deviation log and Temperature log. Plus digital PDFs and LAS files. The well was plugged and abandoned and no additional geochemical or fluid samples were taken nor any determinations of porosity,permeability or fluid saturation. 11401 Olive Lane,Anchorage,Alaska 99515 Phone: (907)522-4664 Fax:(907)349-3557 III • Z%`1 - ceiz �w��y\I/ THE STATE � es � r l' A v� I � x __� — 333 West Seventh Avenue „ ;'Ai GOVERNOR SEAN PARNELL Anchorage, Alaska 99501 3572 * Main: 907.2791433 °'4'AL SICK r y. 907.276.7542 Stephen Hennigan Petroleum Engineers Project Manager Usibelli Coal Mine, Inc. P.O. Box 1000 Healy, AK 99743 Re: Healy Creek Exploration Project, HC #1 Sundry Number: 314-523 Dear Mr. Hennigan: Enclosed is the approved application for sundry approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the 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 dayif the 23rd dayfalls on a holidayor weekend. Sincerely, / I 4'2 54' Cathy P. oerster Chair DATED this 3 a . of September, 2014. Encl. F • • RECEIVED STATE OF ALASKA SEP 2 2 O14 . ALASKA OIL AND GAS CONSERVATION COMMISSION 4' 12-3 If c, APPLICATION FOR SUNDRY APPROVALS AOGCCe 20 AAC 25.280 1.Type of Request: Abandon • Plug for RedrilLi Perforate New Poo❑ Repair WE Change Approved ProgrL Suspen❑ Plug Perforations❑ Perforate❑ Pull Tubircl Time ExtensO Operations Shutdown Re-enter Susp.Weld Stimulaten Alter Casirt Other: ❑ 2.Operator Name: 4.Current Well Class: 5.Permit to Drill Number: Usibelli Coal Mine, Inc. Exploratory 0 • Development❑ 214 122 • 3.Address: Stratigraphic ❑ Service ❑ 6.API Number: P.O.Box 1000, Healy,AK 99743 50-105-200001-00-00 • 7. If perforating: 8.Well Name and Number: What Regulation or Conservation Order governs well spacing in this pool? na HC #1 • Will planned perforations require a spacing exception? Yen Non 9.Property Designation(Lease Number): 10.Field/Pool(s): Healy Creek Exploration Project(Gas Only) • ADL 390606 11. PRESENT WELL CONDITION SUMMARY Total Depth MD(ft): Total Depth TVD(ft): Effective Depth MD(ft): Effective Depth TVD(ft): Plugs(measured): Junk(measured): 1265' • 1265 1255' 1255' •15'-315'RKB,1065-1265'RKB• Casing Length Size MD TVD Burst Collapse ve/Structural/Conduc 134' 9 5/8" 134 134' na na TD 614 0,&j 0 " 1,265 • 1265' 0 0 0 " 0 0' 0 0 0 " 0 0' 0 0 0 " 0 0' 0 0 0 " 0 0' 0 0 Perforation Depth MD(ft): Perforation Depth TVD(ft): Tubing Size: Tubing Grade: Tubing MD(ft): Packers and SSSV Type: Packers and SSSV MD(ft)and TVD(ft): MD TVD 12.Attachments: Description Summary of Proposal 0 • 13.Well Class after proposed work: Detailed Operations Program ❑ BOP Sketch ❑ Exploratory 0 • Stratigraplt0 Development ServicL 14.Estimated Date for 15.Well Status after proposed work: 9/17/201 Commencing Operations: Oil ❑ Gas ❑ WDSPL❑ Suspended❑ 16.Verbal Approval: Date: 1-it',-/y WIND❑ GINJ❑ WAG ❑ Abandoned0 " Commission Representative: C; S`1,..,_,, r f� GSTOR ❑ SPLUG ❑ 17. I hereby certify that the foregoing is rue and correct to the best of my knowledge. Contact Stephen Hennigan ph 337 849-5345 Email shennigan(a�peiinc.com Printed Name / Stephen F. Hennigan Title Petroleum Engineers Project Mgr for NordAq Energy LLC Signature `: k�*c-- Gl ,/ Date �/yy .;.y1..... 9/17/2014 COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: Plug Integr BOP TeD Mechanical Integrity Test ❑ Location Clearance Dr-- Other: 44 ?he'k., Cf c.. 4- eh, 1z 1It�d%f e I fl • Spacing Exception Required? Ye4=I No/ Subsequent Form Required: /6 .._y0- '/ APPROVED BY r/ Approved by: &iv) �f-� COMMISSIONER THE COMMISSION e` C �C(' � ��? c J L ORIGINAL 7- zz—ly /l , g / • a.: • RECEIVED fo'tick tiii • : . SEP 2 2 2014 AOGCC DRILLING OPERATIONS SUMMARY Healy Creek Exploration Project(Gas Only) HC #1 Start Depth Seat Depth Casing Interval Hole Size MD TVD MD TVD Size Wt.(lb/ft) Grade Conn Burst Collapse Tension* Drive/ Driven 0 0 134 134 9.625 40 N80 N/A 3090 N/A Structural/Conductor TD 8.5 0 0 1265 1265 . =minimum of body and connection strengths Note: AOGCC MUST be notified 48 hrs prior to each diverter(annular)function and test. General Procedure Procedure for Plugging and Abandonment (Rvsd) Plugging procedure: 1. Call AOGCC to witness if desired. 2. TIH open ended w/3.5" DP 3. Circulate bottoms up 4. Spot 1St balanced plug from TD for 200' (or cover lowest coal seam plus 50ft above) 5. Monitor volume of returns, record Collect cement samples. 6. POOH slowly—no faster than 7 minutes per stand 7. Pull pipe up to 30 ft above calculated plug top 8. Drop drill pipe wiper dart 9. Circulate for 2 hours. Monitor surface cement samples and increase circulation time if necessary. 10. Monitor volume of return & record 11. WOC time before tag will be determined by monitoring surface cement samples. 12. RIH slowly back to calculated top of plug depth. 13. Tag with min of 5000 lbs force. 14. POOH to +-450'. Spot high vis gel pill +-450'-300'. 15. Set+-300' balanced top plug inside 9 5/8" casing by the displacement method. (bottom of plug will be +-100 ft below conductor shoe) 16. WOC 4 hours 17. Cut off casing approximately 5' below ground level... top off cement as needed to bring to surface. Photo document cement to surface. 18. Weld on plate to cover the casing with company name, well name, API#Ser no, and date P&A'd as per 20 AAC 25.120 19. After the rig has been moved off, the cellar wall will be removed and the hole filled in to original ground level. Photo document surface location status. 20. The location will be cleaned and available for inspection by AOGCC. Page 1 • Usibelli Coal Mine, Inc. 0 • H(: # 7 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) • Denalli Borough 0 Alaska Ser#.: 214 122 F\IT\' P. Conneni, CSG Tors uu( 1 e\:\I.r:\rlo\ NtmmD 'roc cs ne er. �s LSD\v:' Est Rkb-msl 2032' = = Drive Sz>> 9 5/8" 0' -7,wriitore4E. Pilot Hole na 8.3 8.8 11.3 124'P en 134' 0#N 8 0 ROP/Gas to Cond,Dnve _ = vU' BALN .E i+, P ,U(7 1Qi 1 5 15' K WELDED PLATE 9'BGL E. = c OPEN tiULE V 9.5PPCFWBMUD 200' BALANCED CEMENT i'LU(7 E 1255-1055' f hJ3 . 81/2" 8.3 9.5 0.0 1265' TD 1265' • Schwartz, Guy L (DOA) From: Schwartz,Guy L(DOA) Sent: Thursday, September 18,2014 8:36 AM To: 'Stephen Hennigan' Cc: 'Davies, Stephen F(DOA) (steve.davies@alaska.gov)' Subject: RE: Usibelli HC#1 PTD 214-122 P&A Steve, You have verbal approval to start the P &A operation of HC#1. Go ahead and set the bottom plug... We will review the OH logs and determine if the proposed 2 plugs are adequate. Submit a hard copy once we have reviewed the logs. Please insure we get a good BH temp and mud data for salinity calculations. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITYNOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226)or(Guv.schwartz@alaska.aov). From: Stephen Hennigan [mailto:shenniganOpeiinc.com] Sent:Thursday, September 18, 2014 8:14 AM To: Schwartz, Guy L(DOA) Subject: RE: Usibelli HC #1 PTD 214-122 PM Do you want me to get the hard copy delivered today or will you give us a verbal after Steve reviews. Logs will be later today 7atipa Project Manager/Engineer PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 1 Mobile: 337-849-5345 • i From: Schwartz, Guy L(DOA) [mailto:guy.schwartzC)alaska.gov] Sent: Wednesday, September 17, 2014 7:03 PM To: Stephen Hennigan Cc: Mitch Usibelli; Pete Dickinson Subject: RE: Usibelli HC #1 PTD 214-122 P&A Here is edit for you... I will discuss with Steve Davies tomorrow. Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review,use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartz@alaska.gov). From: Stephen Hennigan [mailto:shennigan@apeiinc.com] Sent: Wednesday, September 17, 2014 12:57 PM To: Schwartz, Guy L(DOA) Cc: Mitch Usibelli; Pete Dickinson Subject: Usibelli HC#1 PTD 214-122 P&A Guy Attached is a draft for your review. We realize you will have to confer with Steve when he gets the logs. Let me know what else you need to see Aare c52442.64, /s, Project Manager/Engineer -- PETROLEUM ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 2 I 10 • Usibelli Coal Mine, Inc„ HC #1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) i ' Denalli Borough Alaska Ser#.:214 122 2231'FSL&1310'FEL Sec 16 12s 6w 9/7/2014 Moiblize rig to location. Begin rig up. Continue to drive conductor. Drill mousehole. 9/8/2014 Drive and drill w/MW Drilling f/60-124'; Dead drive 5' ;Test t/300 psi w/air;Unload trailers; Bevel 9 5/8" Csg;Work on Tp trailer;test run generator; Install cellar and conductor plate; R/U light plant and welding equipment Mark/Cut/and Dress 9 5/8"csg head;Set head;Level and pre-heat to 300; Weld Head 9/9/2014 Blade pad; Lay felt&Pit liner w/both crews[windy]; 1030hrs night crew off Lay Matting boards Spot carrier;Pitts; Pump and boiler;Combo building;Fuel Tank; Spot Choke house;catwalk; BOP Skid; Dumpster; Unload trailers; R.U.lights and service lines Level Carrier and start bearming Con't R.U. Poor boy Degasser;Bearm ;Handrails and service lines 9/10/2014 SPOT PARTS CONNEX INSPECT DERRICK; HOLD SAFETY MTG; RAISE DERRICK; BUILD BEARM; INSTALL P.V.T. CON'T INSTALLING PVT;BUILDING BEARM;TOTAL SAFETY INSTALLING GA DETECTORS; RIGGING UP MUD LOGGERS; FILL PITS W/H2O; FILL WELL W/H2O;STAGE BOPE. N.U. BOPE; DSA;MUD-X;2 KILL VALVES;MAN CHOKE; HCR;ANNULAR;CHOKE LINES RU ACCUMLATOR; FAB FLOW LINE AND NIPPLE;CON'T W/CHOKE LINES 9/11/2014 Cont N.U. BOPE;&WK ON FLOW RISER;WK ON BEARM; CON'T FAB FLOW LINE; HOOKUP TRIP TANK; RAISE DERRICK WIND WALLS;P.U. POWER SWIVEL; INSTALL MOUSE HOLE; RU AND CHARGE KOOMEY;WELD BIT BREAKER;INSTALL PANIC LINE; GRADE FOR SIDE DUMP; BEARM PITTS; R.U.TEST EQUIPMENT; DIVERTER SHELL TEST TO 100 PSI/5MIN;ACCUMLATOR DRAW DOWN TEST; RD TEST EQUIPMENT LINE UP STACK RACK;STRAP&TALLY BHA&P.U.;WK ON LEAKING FLOW NIPPLE AND SIDE DUMP; REPAIR QUADCO; R.U.STAND PIPE AND POWER SWIVEL STATIC LINES; BREAK CIRC; WASH AND REAM F/124'TO 144'TAG @ 134'=124'+10.7 RKB 9/12/2014 R.U.PERFORM F.I.T.T/100 PSI F/10MINS.TVD 144;TEST FLUID 9.ppg;vis 38;Mud wt.equivalent 13.4ppg Drlg f/144'to 288' DrIg.f/288'to442' Transfer fluid f/cuttings tank t/pits DrIg.f/442-475'check drilling break @ 435'and 470' DrIg.ff 475'-642' UP WT 10K ROT 9K 1-3K ON BIT 9/13/2014 DrIg f/642'-663' Empty cuttings tank Attempt to DrIg f/663' POOH f/663't/Bit C/O Bit and Bit Sub(Service Rig} TIH t/263'Tag LD 2 jts. PU Swivel Ream f/263-663' DrIg f/663'-703' DRLG.f/703-722'circ. Looking for core point Verify Core point LD Jt set Swivel back POOH and break bit 1/8"out of gauge PU Core Barrell and TIH 9/14/2014 Break Circ.w/Core Barrel&P.U,single P.0 3 JTs.t/722'Core Point Core ff722't/736' POOH f/736'w/core Break Core Barrel apart and remove core Break Bit off 6"DC[not chambered for float}LD DC PU bit#3 and BHA RIH t/150'tight wk.through Work pipe thru tight spots f/150't/633' PU Swivel Wash f/633't 722' Wash&Ream out core f/722't/736' DrIg f/736't 820' 9/15/2014 SET SWIVEL BACK&POOH F/985' P.U.CORE BARRELL RIH T/935' LD 2 JTS. PU SWIVEL WASH F/935T 985'.CORE F/985'T 1000'. PU SWIVEL WASH F/935T 985' CORE F/985'T 1000' POOH W/CORE#2 BD CORE BARRELL&CK CORE#2 PU BIT AND RIH 956'PU SWIVEL WASH AND REAM F/956'T 1000' DRLG F/1000'T/1090' 9/16/2014 Drlg f/1090'—t/1173' CBU SET SWIVEL BACK&POOH P/U CORE BARRELL RIH U 1123' PU SWIVEL WASH f/1123'—t/1174' Core#2 f/1174'—t/1189' i Usibelli Coal Mine, Inc. HC #1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) POOH&LJD Core Bbl Break down&empty core bbl, Recovered 15'of core,Changed oil in carrier engine& service rig M/U Core Bbl& U 1149',Wash U 1189'.Core#3 f/1189'—U 1200' POOH&L/D Core Bbl, Retrieved 10.7'of core, M/U Core Bbl&RIH M/U Core Bbl#4&RIH U 1170'Wash U 1200', Core#4 f/1200'—U 1205' 9/17/2014 Core#4 f/1205'—U 1214' POOH&L/D Core Bbl, Retrieved 10.7'of core Service Rig M/U Bit#3 RR&BHA, RIH U 1175',Work tight hole 1014'—1046' Ream Core hole f/1174'—U 1214' Drlg f/1214' —U 1228',Got out of coal and into clay, Repair charge pump on mud pump—packing blew out, Repair power swivel— would not go forward Drlg f/1228'—U 1265',Drlg break @1247' Circ hole clean for wireline logs. POOH, Wipe tight hole f/1265'—U 1000',UD bit R/U wireline Run#1 —Gamma stopped @ 1105' 9/18/2014 Cont w/Run#1 -Gamma Run#2—Dual Induction L/D HWDP RIH open ended for cementing U 1265', no fill. Circ &Condition mud&Rig up Haliburton PJSM, Pump cmt plug#1 —Fill lines,Test lines U 2000 psi, Pump 8 bbl water spacer,21.4 bbls 13 ppg Cmt, Displace w/1.1 bbls water, 5.8 Bbl mud,CIP 2330 hrs POOH U 9000' Pump wiper plug. Wait on cement 9/19/2014 Wait on cement Wash down&Tagged cement w/5000#down weight @ 1051' Circ POOH laying down drillpipe U 446' Mix&spot Hi-Vis pill f/446'—U 350' POOH U 350' PJSM, Pump 30 Bbls of 13 ppg cement plug f/350'—U surface L/D Drillpipe Drain&rinse BOPs,&cellar area, R/D floor, L/D Swivel. Nipple down BOPs,Choke&kill lines RD—Driller's house,koomey&choke control panels, beaver slide 9/20/2014 Rig Down—Clean&anjust work platform for rig move Rig down—Load out mud, R/D choke house&derrick board,Scope down&lay over mast R/D—Clean cellar,cut off wellhead&conductor pipe 4'below ground level, Prep for load-out, Pickle mud pump, load out choke house&mud pits R/D—Clean pits,drain centrifugal pumps, Prep for load-out of rig, Mix cement to fill casing f/8'—U 4'the top of casing 9/21/2014 Rig Down—Set out Pump room,boiler house,fuel tank,carrier&combo skid, Load-out 6 trailers, Pick up liner&felt,moved carrier off of hill,Weld on Dry Hole marker Finish cleaning pits at 0600 hrs,9-21-14 Rig released to standby rate Start reducing crews Off°.�°k • • t r t Pew I II i n P. �iI %%�A THE STATE A F �C i 1C sau 7�y off ff' A 17- " s(Ciit H ,__ C , a ..f, s t 333 west Seventh Avenue '' '."4-272:2.:.-11'1 GOVERNOR SLAN PARNI;LI. Anchorage, Alaska 99501 3572 Main: 907.279. 433 AILAS '� Fax: 907.276.7542 Stephen F. Hennigan Consulting Project Manager/Engineer Usibelli Coal Mine, Inc. P.O. Box 1000 Healy, AK 99743 Re: Healy Creek Exploration Gas Project, HC #1 Usibelli Coal Mine, Inc. Permit No: 214-122 Surface Location: 2231' FSL, 1310' FEL, SEC. 16, T12S, R6W, FM Bottomhole Location: 2231' FSL, 1310' FEL, SEC. 16, T12S, R6W, FM Dear Mr. Hennigan: Enclosed is the approved application for permit to drill the above referenced exploration well. Usibelli Coal Mine's (UCM) request for alternate well control equipment (i.e. using an Annular with choke manifold) for drilling production/surface hole is APPROVED under 20 AAC 25.037. (Due to the unlikely occurrence of free gas the proposal to use an annular bag along with a standard 5K choke manifold to control any unlikely pressure at surface is prudent and provides adequate well control capability. A FIT to 100 psi will be done at the conductor drillout to verify shoe integrity and BOP equipment functionality. Once 7"surface/production casing is set and cemented the wellhead, casing and BOPE will be tested to 600 psi before completion operations start. ) UCM's request for variance to the requirements of 20 AAC 25.035(c)(1)(A) addressing Secondary Well Control requirements to have specific requirements for the diverter line is APPROVED. (Usibelli's requests a variance to utilize a standard choke/kill drilling spool with 3" line to choke manifold instead of 16" required per 20 AAC 25.035(01)(4 Using the choke manifold and annular will provide adequate well control for any artesian flow or small gas influx that may occur.) UCM's request to waive the shallow gas hazard survey as required under 20 AAC 25.061(a) is APPROVED. (fIt is highly unlikely that the Br 1 test well will encounter shallow gas or geo- pressure drilling hazards. The shallow coal seams that are the targets for Usibelli's planned HG 1 test well are open to the ground surface nearby. No indications of geo-pressure or shallow gas accumulations have been encountered during extensive historical and recent surface and sub- surface mining operations or while drilling numerous shallow, mining-related boreholes) UCM's request to a waiver to the requirements of 20 AAC 25.035 (e)(8) requiring flanged or hubbed connections on the wellhead and tree is APPROVED. (The anticipated low wellhead Permit No: 214-122 • Usibelli Coal Mine,Inc. Page 2 of 2 pressures (MASP 500 psi) allow using generic CBM wellheads that have threaded connections. The proposed Larkin wellhead rating is 1500 psi and can safely handle the expected pressure.) Variance to the requirements of 20 AAC 25.050(2) addressing Wellbore Survey requirements to run a directional survey every 500 feet during drilling operations is APPROVED. An inclination survey must be acquired from the base of conductor to total depth at the time that open hole logs are recorded. Additional conditions: 1. Before drilling operations commence on HC #1 rig AA111 must complete and pass an AOGCC inspection. 2. 7" casing and Larkin wellhead to be pressure tested to 600 psi. 3. FIT to 100 psi at conductor shoe drillout. 4. Mud logging and gas-monitoring services must be operation from the base of the drive pipe (9 5/8" casing) to the total depth of the well. 5. Separate sundry for well completion operations is required. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the AOGCC reserves the right to withdraw the permit in the event it was erroneously issued. A weekly status report is required from the time the well is spudded until it is suspended or plugged and abandoned. The report should be a generalized synopsis of the week's activities and is exclusively for the AOGCC's internal use. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the AOGCC specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or an AOGCC order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Sincerely, Daniel T. Seamount, Jr. Commissioner DATED this2 2-day of August, 2014. 0 STATE OF ALASKA ql) r:''''' ' i N....16# ALASKA OIL AND GAS CONSERVATION COMMISSION Mid u 4 PERMIT TO DRILL 20 AAC 25.005 `. la.Type of Work: lb.Proposed Well Class: Development-Oil ❑ Service- Winj ❑ Single Zone ❑ 1c.Specify if well is proposed for: Drill 0. Lateral ❑ Stratigraphic Test ❑ Development-Gas ❑ Service-Supply ❑ Multiple Zone Q . Coalbed Gas 2. Gas Hydrates ❑ Redrill❑ Reentry ❑ Exploratory Q • Service- WAG ❑ Service-Disp ❑ Geothermal ❑ Shale Gas ❑ 2.Operator Name: 5. Bond: Blanket ❑ Single Well El11.Well Name and Number: Usibelli Coal Mine, Inc. Bond No. 52BSBEP44573 lliHC #1 • 3.Address: 6.Proposed Depth: S•,4/)G 12.Field/Pool(s): P.O.Box 1000, Healy,AK 99743 MD: 1500' TVD: 1500' 4a. Location of Well(Governmental Section): 7.Property Designation(Lease Number): Healy Creek Exploration Project(Gas Only) Surface: ' 2231'FSL&1310'FEL Sec 16 12s 6w • FM ADL 390606 O Top of Productive Horizon: 8.Land Use Permit: 13.Approximate Spud Date: 0 FM na 22-Auq-14 Total Depth: 9.Acres in Property: 14.Distance to Nearest Property: 2231'FSL&1310'FEL Sec 16 12s 6w FM 208630.00 2231 1310 4b.Location of Well(State Base Plane Coordinates-NAD 27): 10.KB Elev above MSL: 2042 feet 15.Distance to Nearest Well Open Surface: x- 705,111 y- 3,609,867 Zone- 4 • GL Elev above MSL: 10 feet to Same Pool: .L 16.Deviated wells: Kickoff depth: feet 17.Maximum AnJticip�atefl Pressures in psig(see 20 AAC 25.035) p 1,,�.,y Maximum Hole Angle: degrees Downhole: [D SJ e-, ? Surface: :-0 L -g-- 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) Driven 9 5/8 40 N80 0 R3 0 0 • 160 160 Driven 81/2 7 26.00 L80 BTC M R3 0 0 . 1,500 1,500 esflaracrtrefirlg+180sx Tail© 12ppg .t-i3� O 0 0.00 0 0 -R3 0 0 0 0 na O 0 0.00 0 0 R3 0 0 0 0 na O 0 0.00 0 - 0 fts 0- 0 a 0 na O 0 0.00 0 0 R3 0 0 0 0 ,,a 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): Perforation Depth TVD(ft): 20. Attachments: Property Plat Q BOP Sketch 0 Drilling Program ❑ Time v.Depth Plot Q Shallow Hazard Analysie Diverter Sketch Q Seabed Report -.Drilling Fluid Program 2/0 20 AAC 25.050 requirement 21. Verbal Approval: Commission Representative: g.'4J1 Date };:("ii,/'/ 7/31/2014 22. I hereby certify that the foregoing is true and correct. Stephen Hennigan 337849-5345 Contact Email shennigan@oeiinc.com Printed Name Stephen F.Hennigan Title Consulting Proj Mgr/Engr for UCM Signature ' - Phone Date g �� f 4,-124_5: (337)849-5345 7/31/2014 Commission Use Only Permit to Drill J_ API Number: i/� Permit Approv See cover letter for other Number: sem-r gr Z-Z j 50- /6 c z 4"(7 Date: as q 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 les: Other: ) Samples req'd:�e N•U Mud log relyr eNo S�y_,4 -rd„.,,1S.,„ t�jdz�-- C.f,� H2S measures: Yes❑�N•I_ Directional svy re❑:Yeer No tk i S cing exception req'd: Yes❑/N9I1 Inclination-only svy r .Ye No.11.._ CC,i- t.+1 Lt-1-"-"- q 6-11,-,c_:, 6' ' APPROVED BY 8'1 24 J Approved by: COMMISSIONER THE COMMISSION Date: ((JJ J Submit)4- 8'fhb 1 rz Form and a Form 10-401 (Revised 10/2012)This perm) IS f o s the date of approval(20 AAC 25.005(g)) Attachments in Duplicate r 11114\so ,,,A,.\. AUG 042014 1111) ,d, 1, p. c\r, Usibelli Coal Mine,Inc. P.O. Box 1000 Healy,Alaska 99743 July 14, 2014 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501 RE: Application for Permit to Drill Usibelli Coal Mine, Inc Healy Creek Exploration Project (Gas Only) Well Name: HC#1 Dear Ms. Foerster, Usibelli Coal Mine, Inc. (UCM) hereby applies for a Permit to Drill a Coal Bed Methane (CBM) exploration and a coal bed appraisal well. This well is located east of the Nenana River approximately 7 miles east of Healy, AK. Depending on rig availability, the approximate spud date is anticipated to be late summer/early fall. UCM at this time anticipates using the AA 111 to drill this well and complete it for testing. If the well test and evaluation results from the penetrated formations are sufficiently encouraging, the well will be secured and suspended for further evaluation. Please find attached information as required by 20 AAC 25.005 (a)and(c)for your review. Pertinent information attached to this application includes the following: • Form 10-401 Application for Permit to Drill • Plats showing the surface location of the well • Proposed Wellbore Diagram • Plan Plot • Drilling Time vs. Depth Plot • Program Details • Cementing Program Summary • Proposed Directional Plan • MLH and Wellhead diagram • Diagrams and Descriptions of the BOP Equipment to be used • Solids handling diagrams • Miscellaneous including variances requested 3000 A Street,Suite+I 0 Anchorage,AK 99503 office(907)6+6-9515 fax(907)646-93 i 7 • 0 to 1 ---,c, '1 Usibelli Coal Mine,Inc. P.O. Box 1000 Healy,Alaska 99743 Also, in accordance with 20 AAC 25.061 Well site surveys (c), the shallow hazard report is requested to be waived but a letter of discussion is included. Additional variances to be requested and authority will be identified in the permit application. If there are any questions and/or any additional information desired, please contact me at 337-849-5345 or Pete Dickinson at 907-230-6541. If you have any questions or require additional information, please contact one of us. Regards -54-4' XC---t-f--5 e--- Stephen F. Hennigan Proj Mgr/Engr Enclosures Cc: Mitch Usibelli — Usibelli Coal Mine, Inc., Pete Dickinson —All American Oilfield Charlotte MacCay— Owl Ridge NRC 5000 A cjtreet,Suite-1-10 Anchorage,AK.99503 office(907)646-93 1 5 fax(907)646-93 17 • i Usibelli Coal Mines, Inc List of Variances for Drilling 20 AAC 25.030. Casing and cementing (e) A casing pressure test must be performed if BOPE is to be installed on a casing. The casing must be tested to hold a surface pressure equal to 50 percent of the required working pressure of the BOPE as specified in the Permit to Drill under 20 AAC 25.035(e) (3) or 20 AAC 25.036(c) (3). The results of this test and any subsequent tests of the casing must be recorded as required by 20 AAC 25.070(1) . Variance requested as annular BOP is to be used as a modified diverter as well as a BOP and rental available is 5000 psi whereas MASP is 536 psi. (f) Except for through-tubing drilling, a formation integrity test must be performed if BOPE is installed on a casing. The test must be performed to a predetermined equivalent mud weight, leak-off, or fracture pressure as specified in the application for the Permit to Drill. The test must be conducted after drilling out of the casing shoe into at least 20 feet but not more than 50 feet of new formation. The test results must demonstrate that the integrity of the casing shoe is sufficient to contain anticipated wellbore pressures identified in the application for the Permit to Drill. The test procedure followed and the data from the test and any subsequent tests of the formation must be recorded as required by 20 AAC 25.070(1) . Variance is requested as this annular BOP is functioning as a diverter too. With the shallow depth, a modified shoe test is to be performed but since the structural casing is not planned to be cemented, it is requested that only 10' be drilled before a test of 100psi is applied to the formation. Authority (g) Upon request of the operator, the commission will, in its discretion, approve variances from the requirements of(b) - (0 of this section to allow for special or unusual conditions if the design requirements of(a) of this section are satisfied. • • 20 AAC 25.035. Secondary well control for primary drilling and completion: blowout prevention equipment and diverter requirements (c) Except as provided in (d) and (h) of this section, a high capacity flow diverter system must be installed to provide safety for personnel and equipment before rotary rig drilling is performed below a well's structural or conductor casing, unless the casing is equipped with BOPE conforming with(e) of this section. The following provisions apply to a diverter system: (1) the diverter system must consist of a remotely operated annular pack-off device, a full- opening vent line valve, and a diverter vent line with a diameter (A) of at least 16 inches, unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints; and (B) at least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; the commission will waive the requirement of this paragraph if the operator demonstrates, based on drilling experience in the near vicinity, that drilling a pilot hole would not be necessary for safety; (2) the diverter system must be assembled as follows: (A) the diverter vent line outlet must be located below the annular pack-off, either as an integral part of the annular pack-off device or as a vent-line outlet spool immediately below it; (B) the actuating mechanism for the vent line valve must be integrated with the actuating mechanism for the annular pack-off device in a fail-safe manner so that the vent line valve automatically opens before full closure of the annular pack-off; (C) the vent line must extend to a point at least 75 feet (i) away from a potential source of ignition; and (ii) beyond the drill rig substructure, or to a point within the reserve pit and at least 50 feet beyond the drill rig substructure; (D) the vent line must be as straight as possible, secured to prevent movement, and designed to avoid freeze-up; (E) the vent line may be secured to the rig and with portable cradle supports, but may not be attached to flowlines, cable trays, or other processing equipment; • • (F) all turns with a bend radius less than 20 times the inside diameter of the vent line must be targeted; (G) all valves must be full-opening; (3) a clearly marked "warning zone" must be established on each side and ahead of the vent line tip, and the following restrictions must be in effect within the warning zone, beginning with the function test of the diverter system immediately before drilling operations begin and ending with diverter system rig-down: (A) a prohibition on vehicle parking; (B) a prohibition on ignition sources or running equipment; (C) a prohibition on staged equipment or materials; (D) the restriction of traffic to essential foot or vehicle traffic only; (4) the commission will, in its discretion, inspect the diverter system for compliance with the requirements of this subsection and require the operator to test the system to ensure proper operation. (d) If the formation competence at the structural casing setting depth is not adequate to permit use of a diverter system while drilling the conductor hole, a program that provides for safety in that drilling operation must be described and submitted to the commission for approval. This program must be supported by pertinent information including seismic and geologic data, water depth, drilling fluid hydrostatic pressure, and a contingency plan for moving off location. A variance to utilizing a diverter is requested in that an annular BOP (bag)will be used but any pressure situations will be handled thru the bag and through a choke manifold as opposed to using a diverter line. (e) A well must be equipped with BOPE meeting the requirements of this subsection from the time that open hole drilling operations begin below the surface casing until the drilled portion has been plugged or the well is completed, except if hydraulic communication to the open hole section is isolated. The following provisions apply to BOPE and other well control equipment: (1) in rotary drilling rig operations, (A) for an operation with a maximum potential surface pressure of 3,000 psi or less, BOPE must have at least three preventers, including ... An exception here is to be noted as the annular type bag is to be used as a diverter but is to function as when it is in a BOP stack and divert the flow through a choke manifold. • • (8) connections attached directly to the wellhead, tree, or BOPE must be flanged or hubbed; A variance is requested that the connections to the wellhead and tree be threaded due to the low pressure of the well and methodology of pumping water out of the well and the availability of equipment. Authority (h) Upon request of the operator, the commission will, in its discretion, approve a variance (1) from the BOPE requirements in (e) of this section if the variance provides at least an equally effective means of well control; and (2) from the diverter system requirements in (c) of this section if the variance provides at least equally effective means of diverting flow away from the drill rig or if drilling experience in the near vicinity indicates that a diverter system is not necessary. • i 20 AAC 25.037. Well control requirements for other drilling and completion operations For drilling and completion operations for which the provisions of 20 AAC 25.033, 20 AAC 25.035, or 20 AAC 25.036 would not be practical or appropriate, the commission will approve alternate well control procedures and equipment if the procedures and equipment are adequate to maintain well control. It is requested that the suggested variances and exceptions noted above be reviewed and determined to be more than adequate as per this section. 20 AAC 25.050. Wellbore surveys (2) surveyed to determine the inclination from vertical with surveys starting at 500 feet and no more than 500 feet apart to total depth; and .... A variance is requested that all surveys prior to total depth be exempted and replaced with "-- survey from total depth to surface performed on eline. Authority (h) Upon application, the commission will, in its discretion, waive all or part of the directional survey requirements of this section or approve alternate means for determining the location of a wellbore if the variance at least equally ensures accurate surveying of the wellbore to prevent well intersection, to comply with spacing requirements, and to ensure protection of correlative rights. 20 AAC 25.061. Well site surveys (a) For an exploratory or stratigraphic test well, near surface strata to a depth of 2,000 feet in the vicinity of the well must be evaluated seismically by common depth point refraction or reflection profile analysis, or by another method approved by the commission, to identify anomalous velocity variations indicative of potential shallow gas sources. Analysis results must be included with the application for the Permit to Drill (Form 10-401). Gk-A variance to this requirement is requested based upon the following reasoning: (see separate documentation) (c) Upon request by the operator, the commission will, in its discretion, waive the requirements of this section if the operator can identify, by other equally effective means, the likelihood of encountering potential shallow gas or seabed hazards or if the commission already has information that substantiates the presence or absence of shallow gas or seabed hazards. Authority: AS 31.05.030 • ! L M •�° USIBELLI COAL MINE, INC. PO Box 1000 •Healy,Alaska 99743 Telephone(907)683-2226•Facsimile (907)683-2253 July 31,2014 Ms. Cathy Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Request for Determination Shallow Gas Hazard Analysis and Well Site Survey—Well HC#1 Usibelli Coal Mine,Inc.Healy Basin Gas Only Exploration License ADL 390606 Dear Ms. Foerster, Usibelli Coal Mine,Inc. (UCM)proposes to drill a shallow Coal Bed Methane exploration well on their Healy Basin Gas Only Exploration License ADL 390606. This project is named the Healy Creek Exploration Project and well named HC#1. This letter is a request for the Alaska Oil and Gas Commission(AOGCC), in accordance with AAC 20 AAC 25.061(c),to make a determination to waive the requirements for a well site survey based on that evidence obtained through evaluation of the information contained in this letter provides reasonable certainty that the proposed well will not encounter any shallow gas hazard and that adequate safety measurements will be in place. RELATED STATUTES Alaska Statute AS 31.05.030 and Administrative Code 20 AAC 25.005(c)(10) require for an exploratory or stratigraphic test well, a seismic refraction or reflection analysis as required by 20 AAC 25.061(a). 20 AAC 25.061(c) states that upon request by the operator, the commission will, in its discretion, waive the requirements of this section if the operator can identify, by other equally effective means, the likelihood of encountering potential shallow gas hazards or if the commission already has information that substantiates the presence or absence of shallow gas hazards. PROJECT SUMMARY UCM proposes to conduct exploration activities for coal bed methane on free and unencumbered state-owned mineral estates within the Fairbanks Meridian (Figure 1). The project area is a subsection of the Usibelli gas only exploration license area that consists of 204,883 acres of land. The proposed exploration activities would take place during the summer months on a 150 ft. by 150 ft. footprint of previously disturbed land and accessed by existing UCM roads and exploration trails. The project site is located approximately 6.5 miles east of the Nenana River, and the town of Healy. The project area is approximately 8 miles from the town of Healy and the closest boundary of Denali National Park& Preserve. The project area lies in the Denali Borough within the Tanana River Basin Plan area. The Tanana River Basin Plan defines these lands as multiple use and allows for gas and oil exploration in the area. WELL DESCRIPTION The UCM Healy Creek Exploration Project will consist of a single vertical coal-bed methane exploratory well located at T12S, R6W, Section 16, Fairbanks Meridian(see Figure 1). As planned, the Healy Creek well will be a shallow well at approximately 1500 ft. in depth and will help UCM determine whether subsurface coal seams contain sufficient quantities of methane gas to justify further exploration. The well will be drilled by a mud rotary system to its proposed total depth, with selected intervals of coal cored, to sample and test any gas-bearing seams identified. • Request for Determination Usibelli Coal Mine,Incit . N I ,*t1Wf ,s.„. „, \t.,,._ , kot , -!--- – NI -I _—I :7-5- 1 t I h� Healy Creek D iia COA A" ,'.1b 4_. Exploration Project i --‘ A/ US/BELL! COAL MINE. INC ... - HEALY CREEK EXPLORATION PROJECT& EXPLORATION LICENSE AREA Figure 1: Healy Creek Exploration Project location and boundary of UCM's Healy Basin Gas Only Exploration License ADL 390606. SHALLOW GAS HAZARD ANALYSIS AND EXEMPTION RATIONALE The Healy Creek Exploration Project involves one shallow gas-only exploration well. The geology of the basin and the project site have been well defined, by extensive geologic investigations and mapping, and continuous coal exploration and mining operations over the last century. The formations have extensive outcrop exposures, due to the uplift and erosion occurring along the northern flank of the Alaska Range, that easily lend themselves to the study,mapping and testing of the formations. The resulting well defined geology of this relatively shallow, immature, non-marine deposit has resulted in no known prior exploration for oil or conventional gas due to the lack of prospectiveness. Therefore, no known offset • wells or seismic data exist in the immediate area of the proposed well. However,the low potential for shallow gas / hazards in this area is more than adequately supported by other sources of information and evidence. The immature Tertiary coal-bearing sediments and structural setting at the drilling site include weakly indurated clastics that are not favorable to any structural or stratigraphic traps for gas and lack a sufficient seal in the intermediate and overlying strata at the depth being drilled. The geology of the basin and project site is described in more detail in UCM's separate Request for Determination to AOGCC to exempt the well from requirements to prepare an approved oil discharge prevention and contingency plan(ODPCP)previously submitted. ..,- Extensive Extensive coal exploration,mining and geologic investigations have confirmed the thermally immature nature of the sub-bituminous coal-bearing deposit and lack of any oil or conventional gas system. The State of Alaska issued a Usibelli Coal Mine,Inc. 2 8/1/2014 • • Request for Determination Usibelli Coal Mine,Inc. gas-only exploration license based on its evaluation and conclusion that the basin is most likely prospective for coal bed methane. Coal bed methane by nature is typically found at low pressures due to being kept in solution in coal seam aquifers. The planned mud rotary drilling program is designed to utilize a mud weight in the well column to / maintain the anticipated low formation pressures and keep any methane in solution. The drilling rig also has additional safety devices in place to handle any higher pressures in the unlikely event they are encountered. (This is addressed in the 10-401 supporting documents.) Numerous natural outcrops of the entire coal-bearing sequence exist in the area, in addition to nearly a century of continuous coal exploration and mining, and no evidence of shallow gas hazards are known to have been observed or encountered. Hundreds of shallow coal exploration drill holes have been drilled in the basin, and extensive surface mining and historic underground mining has occurred,to typical depths of five hundred or more. Prior mud rotary drilling to depths exceeding seven hundred feet located approximately eight miles from the proposed well site in the same section of the same formations and similar structure encountered maximum pressures of 10-12 psi. V The geologic structure at the drilling site is very well defined by surrounding outcrops and prior coal mining and exploration. It consists of steeply dipping coal seams outcropping up dip and to the south of the drill site and also laterally in the creek valleys adjacent to the drill site. The outcrop area to the south was previously surface mined in the 1950's and again in the 1970's. No structural traps or adequate seals have been identified, and the existing structure would effectively allow any free gas to naturally escape up dip and to the outcrop,thereby preventing any shallow gas hazards from developing(see Figure 2). 2014 CBM Potential Evaluation Cross Section 704,930 VV _=_AluatematyCitzvel 400, d isrk 201Y 7300' 44111 155 1107 Seo voo 1(60' soe Figure 2: Geologic and Structural Cross Section of UCM's Healy Creek Exploration Site. The Nenana Basin is located approximately 30 miles to the northwest of the Healy Creek Exploration Project and shares the same coal-bearing formations in its upper to mid stratigraphic section. Four conventional oil&gas wells have been drilled in that Nenana Basin to date. None of these wells encountered shallow gas hazards, or gas- ✓ charged intervals, and all seemed to lack a sufficient seal in the intermediate and overlying strata. No commercial gas was found and all the wells were plugged and abandoned(see Figure 3). Usibelli Coal Mine,Inc. 3 8/1/2014 • • Request for Determination Usibelli Coal Mine,Inc. I' at P .?i > �" u f • n .: i'I MaTAPS P mp It. , 0 Area Statim 7 . ...Wilt) 2012 Se " r*'.topiur trot idF'F i46,3 FAIRk3ANKS'" FlintIttUt',•— Refinery - —._.. Nenana Lease Area:, 220,C00 bpd -400.000 acres _"--'- PetroStar Refinery $ ivsk M1 22.0O bpd _- UnocalManana 01 (2009) . NENANA l Ltri_l . VL.n;vak tlL Danner 2013J s Wall Stites =Doyen Starts of Alaska leases 1Nnetta Basin di . )cyon Owned O&G Interests ARCO Teta* lids iv .,,, a%ailastle sesnMC 0:4 97 City o1 Nottanal ROW Roadsr .. , Accu Roads ,',/1 He Reek/ Railroad ~., ,,�Prr c _Inns Ala ska P peane Svs:en 1 Miles , , Eloctric Transmission L ria. Figure 3: Map showing location of Nenana Basin and conventional wells in relation to the Healy Creek Exploration Project. SUMMARY CONCLUSIONS .4- Extensive Extensive evidence exists supporting the Healy Creek Exploration Project is highly unlikely to encounter shallow gas hazards between the surface and vertical depths of 1,500 feet or greater. The evidence supports a decision to be made with reasonable certainty that the proposed well will not penetrate any shallow hazard, that adequate safety measures will be utilized during drilling operations, and that the well should be exempt from requirements to perform a well site survey. The evidence supporting a decision is based on: • Shallow 1500 foot depth of the well; • Immature character of the sub-bituminous and lignitic classification of the coal seams in the region and project area prohibiting the production of a conventional gas system; • The lack of any evidence of shallow hazards or gas charged zones encountered during nearly a century of coal mining and exploration or in the extensive coal-bearing outcrops exposed in the basin including immediately adjacent to the project area; • The planned use of a mud rotary drilling program and mud weight to maintain low formation pressures and keep any methane in solution; Usibelli Coal Mine,Inc 4 8/1/2014 • Request for Determination Usibelli Coal Mine.Inc. • The utilization of rig safety devices in place to address any higher pressures in the unlikely event they are v encountered; • The lack of shallow gas hazards or high pressures encountered in prior mud rotary drilling in the area; • • The well-defined geology and structure of the site showing the lack of possible traps and seals; - • The structural dip and outcropping of the coal seams allowing natural migration of any free gas; • • The lack of any shallow gas hazards encountered in the same formations in the 4 conventional oil & gas • wells drilled in the adjacent Nenana Basin; / UCM understands that should they encounter any shallow gas hazard during the drilling of this well that the appropriate safety measures will be employed, operations must be immediately suspended, and AOGCC must be immediately notified. UCM also understands that this exemption does not relieve UCM of the responsibility for securing other federal state or local approvals or permits, and that we are still required to comply with all other applicable laws. If you have questions regarding this request for determination, or require any further information please call me at (206)546-2691 or e-mail me at musibelli@comcast.net. Sincerely, Mitchel D.Usibelli Usibelli Energy,LLC—Manager Usibelli Coal Mine,Inc.—License Representative&Project Manager Cc: Pete Dickinson,AAO Stephen F.Hennigan,AAO&Petroleum Engineers,Inc Usibelli Coal Mine,Inc. 5 8/1;2014 • • < UNITED STATES 111 !!!„_ HEALY 10-4)QUADRANGLE 5y DEPARTMENT OF THE INTERIOR I...CONFIDENTIAL ��M p0�� GEOLOGICAL SURVEY 163360 orae /TOPOGRAPHIC, ` s e � P'r�a ec'1 + •`t, �� \ (/ z I�z �1 t f` s " - • ` ��. `ter\ 2 '. r.--"''': 1-4-'''vS t `.. a G z l f 1 '.---i _-, , , _ ,,,, ,,,, , ,,,. a I_ A 1 :5 I,4 Ic 5 > 5 5 1k '7_ 1,4 .�- L^ .� iii°-�wM" 7 o ��- V, j'" a 3 m 2 \ 1 .,,„.,,2) ,, 7 n� '` ?ill. sr 1 � ors 5 4 ',.1--L 7 /• ` s /,',1s,�,/ 3Vo� 4.. -, d - �-1 /ql ""-"','^ .a, 2 Ib "� , 5b rr \ 1�_,... _.,"�'� _ Ili ,,, ,, ` ,--¢` -.rte. _.. ter '� u / [.,�% _ 1�-' _ s,ayys 1.. ' Usibelli Off ce/Sho ✓ '!�' 1�;� - lir J _ii ii_ (fuel supplies office) r ��' 't .,.i� r rgr kiiiitivit, ' } 6 , a Existing Exploration Trail ,- 4 --� ,✓ — S I . �.Heay Spur Road �+ - (-1.5 miles gravel) ► �.' ': - `r: e� 't" -� a �� 3.5 miles Road y\ �( J A ^•^s� y__,—, , O t � A; Usibelb Haulroad -.c.1,,11,;-1 ,� ,-..'• 1 „..,0-----^i \ '✓ j T i y, r 2 en. ; (-6 miles gravel) F Aib :. a -New Bridge l Alternate Drell Pad �c -----,1"-'--1,;1\,--,,,,,4:---=---:-.-- .—._ •\t ,::GVEA Healy `�/`' 1 4 Primary Drill Pad 2,A • •> >~.f,27.:'- I`{1• Power Station r'I gd - (-150'x150') I 1 , '''' w�- m �` x, I' i � HEALY(Pay V • ' .-:w ; - - ,(1 \ �.) ) Hwv MP 249: ytr�l\�•'', '42 �_ L"sem- kr•- _v "°~ ) ' 1�' ' \ 1 lid ti_'_ j .,. hotels;food;etc.) .'`' y,•, '�` .v / � ,'(� - 1 1,,,...7.,_\"\-_-\,‘114 ) 1� Q.9., is '' ) '' n t zc x �-'� ce 's f -�\ .y l � � al ''/-S' .---/S4-1-/- 1 - A ` es '' � de m .; +✓ t% \\I �\. \ i i 1 _ � \_ �-.°° ‘------------- Y �,---#' .5( p`0.` 5.:y i \ ;1` a \� ho '-' ;—1 i m ".a+ -/' -Icy 'C!, rgJ(•• / _JJ "-----)- : `\-- �l'------*-) - ''--- � ✓�. qv t ;: ;1 ?a i 4-� !-------4."-11,-,4 `,� '--y( fp Aa) f ' '`fit ‘i.."'")\-'; Fs ill` (. --�� / � \ -( atotit ' � .s� ', �� —fes; \l` `r y ' s � �,,,,,...A..),',..- fi ( ( ,(.! ` +; __ ,, .:. 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SYa08 OEOLOI SUPPEV.P.O.300.232114.03.:01....,001.01000.... 10323 —� aOIGUslbe111 Coal Mine,Inc 'I- •.- —N S MC 7. 2014 2014Well Drilling Program IIIICONFIDENTIAL III — Site Map m� • • ti Fv�y c'S'F F,_ \F 7sr /F S GRID NORTH BASE-1 2656 A 30" Rebar No W/2" Sur' Cap ' 1,310'± TO EAST T LINE SECTION 16 Q9i� 2035 HC #1 2656 AS—STAKEDN27, ASP '```��4v` NAD 3,609 866.6 NE 4 =P,`�°°... • 4.4 qi. E. 705,1 1 1.41 — '\e° °•,.� Lat. 63' 52' 22.022" o e Th °•"9 ,l Long. 148' 43' 40.733" *: 49 * 2,231'± TO SOUTH Ti °°°°� NAD83, ASP ZONE 4 LINE SECTION 16 u+c.c ,✓ N. 3,609,627.65 E. 1,845,149.15 0 `°°TIM S. VENECHUK°° ato Lat. 63' 52' 20.387" ,�d' •° • o •• • No. LS 7424ary Long. 148' 43' 49.080" .,c ••• ° •°�� Elev. 2032 NAVD88 GEOID 12A 1'''AL �'' . SE 1/4, Sec. 16, NOTES: `\\""`` T12S, R6 W, FM, AK. DETERMINED BYBASIS OF HO AN ANDONTAL NGS OPUS SOLUTION FROM CORS BASE STATIONS, "FAH FAIRBANKS PID DK4095", GRNX AKDA PID DL6471", "AC75 HURRICANE PID DP3850", OBSERVED JUNE 29, 2014 FOR DRILL PAD AS-BUILT USIBELLI ENERGY, LLC, "BASE-1", ALASKA STATE PLANE NAD83, 0.50 ACRES N. 3E609,658.4634, EPOCH 2010 DATUM. E. 1,845,048.439 Elevation: 2030.59 GEOID 12A, NAVD88 DATUM. SCALE: 1"= 50' -- -- 2.) SECTION LINE OFFSETS WERE DETERMINED BY PROTRACTION 0 50 100 FEET FROM PREVIOUSLY LOCATED NEARBY SECTION CORNERS AND UTILIZING RECORD INFORMATION DERVIED FROM THE 1 ORIGINAL GLO—BLM SURVEY NOTES AND TOWNSHIP PLATS. USIBELLI COAL MINE, INC. PROJECT REVISION 1 HEALY CREEK EXPLORATION PROJECT DATE: 7/08/14 P.O. Box 1000 Heal , Alaska 99743 HEALY BASIN GAS—ONLY SCALE: 1"= 50' y EXPLORATION LICENSE ADL No.390606 PROJ. No. Interior Surveying & Mapping BOOK No. T.S. Venechuk PLS LOCATION SE1/4, Sec.16, T12S, R6W, SHEET P.O. Box 338, Healy, AK 99743 Fairbanks Meridian, Alaska ka 1 of 1 BEle rumens KALB I ON aor I - 000008 mow I - .91000tlOM OT313 W`d2JOO2Jd NOIlV2JOldX3 X133210 AlV3H , , I3lh s 3SN33I1 AlNO SdO NISb9 Ald3H \ 1 ligg g e 1,1011d110630 3.1DNI'3NIW WOO Ill391Sf1 f 1/GU e 0 0 / o / 3003 OVd .0'9 eeLT;giR gO a LL�i�p J LL Lu eD he OK o0 U GINS m 3arc4 ¢¢ ZSZ <r> cm v 0O o oa aa 0 N1VMltl0 i13R121V0 w ra .0'11, d'LL .019° 'I` •m o 1, ILI a a T O a 0. 354OHO a c Slid amWOOL dWfld ' to 2131108 m W❑ .0.0€ ZEE Zoe .S'LZ ¢ CU - 0 O CU b p XO9 SONIllfIO m _I to w p N LU A'09 OF O .0'L fn ¢ 2 5S CL bXRN0011idS °' L OZ ag ow oz v ON o OF3 gF 0 I0 z q p v N J -W O )190C1 1001 . mE �� o roi ui SSC ILO I- ¢ �z S'09 _ SZL .SILO -_ .0'91. LL V \ 3003 avd 0— LU V R-w U3 ti 0 4t N. l J ILLI: fi wp A . le t.,°°-.::::". g 1g 4+si t', . '`AM�'\ :q � / :1174., ' -S fl 8 \ ''14. t( i w vs1i ,,,t ,,,,, m ti Rei .. t (j EFyuou6eo` `` ^.,y ,` Y g trs;' k :. y TPay Y rW t \ fir: : ate" / \ Y } �.. r r � zpxk 11 0^A t S • • ! i Ri It a r• a ,.,„, ,,,,Itrl.. , ., , ,,-.. - ,, i Usibelli Coal Mine, Inc. () Coal Seams HC # 1 GAS ONLY CBM Exploration Block/Sec 16 12s 6w Healy Creek Exploration Project (Gas Only) Denalli Borough 0 Alaska Ser #.: 99979 USDW: ' Pkvp.MEF ,0 Prepared ` , Y By: Usibelli Coal Mine, Inc. 0 C)/1. FIEt.-O and All American Oilfield Associates LLC Usibelli Coal Mine, Inc. 0 • HC # 1 • Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) Denalli Borough 0 Alaska Ser#.: ????? FMTN. PP MW FG Comments/ CSG TOPS/ DIR (ppg or ppge) EVALUATION MD!TVD TOC Cog Doer. CASING&ROLE SIZE USDW:' Est Rkb-msl 2032' Drive Sz>> 9 518" 10' quaternary grvl 8.8 11.3 150' n._..'.,.~ 6` Y...� ) . 'G.4"TO.625"WALL 50' Lignite Creek FM ROP/Gas log Cond/Drive to TD. 49.875"CASING (DRIVE PIPE) 135' Top Usibelli 1 TO±150'PENETRATION 160' Casing 1 = ±25'13£LOW BASE OF ettAvti ZI art 1-1 311' Coal Seam 6-Suntrana FM E 447' Coal Seam 5 =1 �N4 - 809' Coal Seam 4 a. �"' 995' Coal Seam 3 • ' 1107' Coal Seam 2 "t —41iiii; 4/ t li 4,4 il 11 si v - 1248' Coal Seam 1 .s 4.1 [l 1318' Healy Creek FM 1360' Coal"F" "/ / t,ii j" 1500' TD .- ii) off\ / vb t e. '11 ' .m 8 1/2" 8.4 9.0 12.5 1500' _ w:_26#L80 BTC M Bicenter/UR` 7 " 1500' • 0 Mo r -___._ ___.a O N y O (1 I. 0 N • W m r U coa og o o o ami .2 ca o U co • o in co CV V - p 0 6 m r Z in 01 O O O cv O V Q▪ ) CD Z ▪ca o Lo0 T O O O T II V Qu. U C d 0 % LL y. z y 1b .4 R M N Y V 2 '- t % W E m E _ N G y_tq Vi l0—y W_ O ti V U V U a U V V ii = G C - • N • • • I • • •• o O 0 0 Ar) o (a u`uidaa • • Usibelli Coal Mine, Inc. 0 HC #1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) Denalli Borough 0 Alaska Ser#.•????? 2231'FSL&1310'FEL Sec 16 12s 6w 2231'FSL&1310'FEL Sec 16 12s 6w Sand Tops/Significant Markers Objectives Type TVD EMW COMMENTS quaternary grvl 10 8.3 Lignite Creek FM 50 8.3 Top Usibelli Base of gravel 135 8.3 Casing 1 Drive/Struct. 160 8.3 ---7?oal�airi 5---- Suntrana FM 311 8.3 Coal Seam 5 447 8.3 Coal Seam 4 809 8.3 Coal Seam 3 995 8.3 Coal Seam 2 1107 8.3 Coal Seam 1 1248 8.3 Healy Creek FM 1318 8.3 Coal"F" 1360 8.3 TD 1500 8.3 • Directional Program: Directional Per program TVD VS Opn(s) o o 0 Lithology 0 0 0 Samples: 2 sx/10',base casing-TD 0 0 0 O o 0 Directional Survey: 0 0 0 Per regulatory and directional requirements. 0 0 0 O o 0 O o 0 O 0 0 O 0 0 0 0 0 Logging Program: Lwd OH OH Possible Cased Hole Mudlogginq Res,Gamma Neutron, .. compensated TD Surface/Prod density/porosity,Density TBD Full Svc Dip Meter,Hole Survey (dip and orient),cony cores,water sampling 0 S • Usibelli Coal Mine, Inc. 0 HC #1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) Mud Logging: Unmanned: ROP/Gas log Cond/Drive to TD. Manned: 2 sx/10',base casing-TD Mud Program: Interval(TVD) Mud Weight(ppg) From To From To Mud Type 0 160 8.8 8.8 ' N/A 160 1500 8.8 9 Spud 9 0 O 0 O 0 O 0 O 0 Casing Program: Measured Depth Connection CMTD Est No. Hole Size Casing Size From To Wt(ib/It) Grade Type with TOC Centralizers Drive/Structural/C Driven 9.625 0 160 40 N80 none NA none TD Surface/Prod 8.5 7 0 1500 26 L80 BTC M 180 0 10 NA 0 4 NA 0 4 General Drilling Prognosis: 1 Prep Location. Move in and set 9 5/8"drive pipe/conductor and build cellar with coal boring rig. 2 Prep location. MIRU drilling rig. Conform to ALL regulations. Perform spud mtg. 3 Install casing head and annular to be used as divertor. RU mud loggers(also set up mud loggers to collect samples every 10'). 4 PU BHA(bit and collars)and TIH. 5 At base of casing,load hole and circulate and condition mud. 6 Drill 10',pull back into casing and circulate out making sure all equipment is in working order. 7 Shut annular and test casing and formation to 100 psi,charting on a chart. (FIT). 8 Continue to drill to±800',within 10'of Target 1. If decision to core,C&C mud. POOH to core 9 Perform core run. 10 NOTE: All cores collected on this well are to be IMMEDIATELY preserved in sealed,airtight canisters to be 11 sent in for gas content and desorption/adsorption analysis. _ 12 core. 13 Perform core run. Handle core as directed. 14 core. 15 Perform core run. Handle core as directed. _ 16 core. 17 Perform core run. Handle core as directed. 18 RIH w/BHA(bit and collars)and TIH. Drill ahead looking for"F"coal. If decision to core, C&C mud. 19 POOH to core. Perform 30'core run if directed. 20 21 Drill to Total Depth. • 22 Monitor surge&swabs. Set down slowly on slips. Kick pumps on slowly. 23 Condition hole. Evaluate. 24 25 Run&cement casing. Bump plug with water. Clean out. Go to completion. 26 27 Prep for flow test(s). 28 Final Complete • Usibelli Coal Mine, Inc. 0 HC # 1 Block/Sec 16 12s 6w Healy Creek Exploration Project(Gas Only) Denalli Borough 0 Alaska Ser#.: ????? Time vs Depth Casing Size& Depth 0 I �-Days vs MD -TVD vs Days Prod Csg/Inr 200 400 600 800 - 1,000 1,200 1,400 1,600 0 5 10 15 20 25 96 • 1 Emergency response Information 1.1 Directions to Location Method Directions Air Latitude: 63.5222022 Longitude: 148.4340733 NAD 27 Head North from Anchorage on the Glenn Highway,turn left onto the Parks Highway and continue to Healy.Contact Usibelli by phone for specific delivery instructions Ground Address is Usibelli Coal Mine Inc.100 River Road,Healy,Alaska 99742 Contact Phone(907)683-2226 Air Healy River Airport,63-52-17.4869N 148-58-12.2649W - 2,619 foot runway- Manager phone number(907)451-5280 1.2 Rig Contact Numbers(Tentative depending on rig and communications available at time of MIRU)) Rig Phone List Cell#'s Co.Man: (907)865-9934 Tool Pusher: -9935 Mud Engr: Mud Loggers/LWD -9927 Camp -9938 Guard Expeditor -9939 (907)598-8803 Trailor 6(temp) -9936 Others will be addressed as necessary 1.3 Emergency Response Contact Numbers Company Contact Numbers Name Position Office Cell TBD Co Man TBD Clerk Superintendent Drilling Operations Manager Stephen Hennigan Proj Mgr/Engr COO Logistics Response Service Location Contact Phone Healy,AK State Trooper 911 Aerial Ambulance/Life Med (Healy,AK Trooper Post (907)683-2232 Healy,AK Tri-Valley Fire Station (907)683-2232 Fire Healy,AK Tri-Valley Fire Department (907)683-2232 Hospital Healy,AK Canyon Clinic (907)683-4433 Police(Local) Alaska State Troopers Soldotna,AK Alaska State (907)683-2232 1-800-478-9300 Alaska State Spill Reporting (907)269-3063 Alaska National Response Center (800)424-8802 Spill&Contamination Coast Guard (800)479-5555 AOGCC (907)793-1236 (907)279-1433 Spill&Contamination Mgmnt Slidell,LA Witt/O'Brien's Resource Management 24-hour emergency (985)781-0804 Operations Houston,TX Wild Well (281)784-4700 1.4 Company Emergency Response Name Position Office Mobile Drilling Operations Manager COO Superintendent HSE Manager Steve Hennigan Project Mgr/Engr (337)849-5345 Prepared by Stephen F.Henniganq 8/4/2014 Page 7 • 2 Regulatory Agency Contacts by phone or email Agency Office M-F(8AM-5PM) Contact 24 hr AOGCC (907)793-1236 Inspection Supervisor(Jim Regg) See Industry Guidance 10-01 ,ttD://doa.alaska.gov/ogc/forms/Test W itness Notif.html). AOG CC.I nspecto rs(S a laska.aov See drilling prog for additional information 3 Regulatory Compliance Regulation 20 AAC 25 BOP testing every 7 days 24hr notice required 4 Drilling Program Summary 4.1 General Well data Name HC N 1 Lease/Lie ADL 390606 Surface Lcn 2231'FSL 81310'FEL Sec 16 120 6w Sit/Pad Land Field Healy Creek Exploration Project(Gas Only) Spud Datelestl 08/22/14 KB(above MSL) 2042 County/Prov Kenai API No. GL(above MSL) 10 State AK Permit No. Perm Datum KB Total MD 1,500 Well Class Coal Seams WD na Total TVD 1,500 Drig Contractor AAO 111 USDW 0 Rig Name - 4.2 Working Interest Owners Company Working Interest Address Primary Phone Fax Operator Usibelli Coal Mine,Inc. 100.00% P.O.Box 1000,Healy,AK 99743 (337)849-5345 (for permitting questions) Prepared by Stephen F.Henniganq 8/4/2014 Page 8 • 4.3 Geologic Program Summary NA027, ASP ZONE 4 NAO8-3 ASP ZONE 4 N. 3,609.366.62 N. 3,609,62 7.55 E. 705.1 7 7.47 E. 7,845,149.15 Lat. 63' 52' 22.022" Lot. 63' 52' 20.387" Long, 148' 43' 40.733" '-orq 148' 43' 49.080" Flev. 2032 NAV088 CEO')'24 NAD 27;Alaska Zone 4 X Co-ord. Y Co-ord. Surface Location Co-ordinates 705,111 3,609,867 Bottom Hole Location co-ordinates 705,111 3,609,867 Pore Pressure Targets M.D.(ft) T.V.D.(ft) XCoord. YCoord. (peg)est quaternary gm! 10 10 3609867 705111 8.3 Lignite Creek FM • 50 50 3609867 705111 8.3 Top Usibelli • 135 135 3609867 705111 8.3 Casing 1 160 160 3609867 705111 8.3 Coal Seam 6-Suntrana FM 4 311 311 3609867 705111 8.3 Coal Seam 5 447 447 3609867 705111 8.3 Coal Seam 4 809 809 3609867 705111 8.3 Coal Seam 3 995 995 3609867 705111 8.3 Coal Seam 2 1107 1107 3609867 705111 8.3 Coal Seam 1 1248 1248 3609867 705111 8.3 Healy Creek FM 1318 1318 3609867 705111 8.3 Coal"F" 1360 1360 3609867 705111 8.3 TD 1500 1500 3609867 705111 8.3 4.4 Formation Evaluation Summary Final Hole OH-WL Other OH- Pilot Hole Size MD TVD (Possible) WL(TBD) LWD Mud Logging Cased Hole 160' 160' na Res,Gamma Neutron, compensated density/porosity, TD Surface/Prod 8 12" 1500' • 1500' Density Dip Meter,Hole Survey (dip and orient),cony cores, • water sampling Full Svc TBD Prepared by Stephen F.Henniganq 8/4/2014 Page 9 • • 4.5 Summary of Potential Drilling Hazards Hazard Event Depth Discussion Precautions /interval Wildcat Well ALL Monitor all parameters for exploratory well. Balling ALL Maintain high gpm/rpm to keep bit/BHA clean Perform additional circulating times Stuck casing ALL Perform multiple conditioning trips circulating at max rate and rpm with stiff BHA(ultra packed) Boulders/rocks/sand ALL Control penetration,add Icm,high vis sweeps Monitor for loss of rtns Possible depleted zones Offset wells indicated no issues Monitor for loss of rtns and differential sticking. Monitor for connections in hole.Circulate hole Offset coal seam wells indicated very little difficulty. clean to clear wellbore of gas before proceeding. • Drill gas ALL All precautions are being addressed as this is an Be sure degassing egpmt is operating properly exploitation well- prior to spud.FOLLOW THE MUD WEIGHT • PROGRAM Potential Hazards Statement To comely with state reaulations the Potential Hazards section and the well shut-in orocedures must be posted in the drillers dog house. The man on the brake,driller or relief driller is responsible for shutting the well in BOPE or diverter as applicable as soon as warning signs of a kick are detected and an influx is suspected or confirmed. A copy of the approved permit to drill must be kept on location and be readily available to the AOGCC inspector. This well's primary objective is all Coal/hydrocarbon bearing zones. No H2S is anticipated. The drilling mud system will be properly weighted to control the pressure of all sands/coals. Prepared by Stephen F.Henniganq 8/4/2014 Page 10 • • 4.6 Drilling Program Summary 4.6 General Summary Well Name HC#1 Permit to Drill No. 99999 Location Surface: 2231'FSL&1310'FEL Sec 16 12s 6w Top of Productive Horizon:0 Bottom Hole: 2231'FSL&1310'FEL Sec 16 12s 6w Planned TD MD: 1500' TVD: 1500' ' Directional Plan As per program Well Summary A 9 5/8"structural drive conductor pipe will be driven to*160'RKB. Using water-based mud,approximately 1500'MD of 8 1/2"hole will be drilled and evaluated. If electric logs and cores indicate zones that are encouraging,a 7"surface/production casing will be run and cemented. Then the well will be flow tested,and then suspended. Y/ This well will be drilled as a"Gas Only"well. The entire production hole will be drilled through volcanics most of paleocene age. Based upon the nature of the well(coal seams),gas cut mud may occur anywhere in the open hole. Therefore there will be close monitoring and more circulation of mud to insure proper conditions before proceeding. There are no special risks anticipated for this well except as previously discussed. KEY CASING DEPTHS Start Depth Seat Depth Interval Pilot Hole Hole Size MD ND MD TVD Drive/Structural/Conductor na Driven 0 0 160 ' 160 TD Surface/Prod 81/2" 0 0 1500 • 1500 Pore Pressure/Mud Program The well will be drilled to TD using water-base mud with a weight of*8.8-9.0 ppg in the surface production section of the hole. Nearby coal core holes to±400'indicated no abnormal pressures as did other test holes(proprietary)to±700'. Conventional drill wells in the Nenana Basin to the east did not have any Issues. Mud Logging Gas monitoring and basic mud logging services will be provided from SPUD to TD.Services will consist of cuttings description and construction of a lithology log. Fluid levels and system gains/losses will be monitored as well. Logging Program Electric logging will be performed at TD. Conventional cores and water sampling at other intervals. If hydrocarbons are indicated to be potentially economic,then the testing phase will begin after the well Is cased. BOP Testing BOP testing will be conducted at least every seven days and every casing run. AOGCC Field Inspectors will be notified 24 hours in advance of spud and all diverted BOP Tests. It will be noted on drilling report and on IADC sheet whether the test was witnessed by the AOGCC inspector or waived. Waste Disposal All solid waste,including drill cuttings,will be disposed of per regulatory. Excess mud and fluids will be disposed of as permitted. Completion/Well Testing After the production casing is run,it will be cleaned out and tested. A completion/test string and packer will be run. Each potential zone will be perfed,tested,and then isolated. Following the tests,zones will be Identified for potential development. Prepared by Stephen F.Henniganq 8/4/2014 Page 11 • • 4.7 Casing program Summary Start Depth Seat Depth Seat Depth Casing Interval Hole Size MD TVD MD TVD Size Wt(lb/ft) Grade Conn Burst Collapse Tension Drivel StructureMCon Driven 0 0 160 160 9 5/8" 40 N80 N/A 3090 N/A donor TD 81/2" 0 0 1500 1500 7 " 26 L80 BTC M 7240 5410 604 Surface/Prod Buck on float equipment B yard MU casing to optimum torque 4.8 Calculation of Maximum Anticipate Pressures(MASP and MADP) Note: In this program,MASP for each hole section is defined as the pore pressure(in psi)at the next casing point(or TD)less a gas column to surface. The MADP is defined as the maximum pp WITHOUT a gas gradient. Gas gradient is assumed to be 0.1 psi/ft thru the shallower depths. At deeper depths because of overburden gas gradients are calculated. In addition,all zones deeper tested oil and/or water which yields a higher gradient. na PILOT HOLE 8 1/2" Hole Section—estimated Dore pressure of 8.3 ppg emw This hole section will be drilled to depth with a diverter only(no BOP's)and±8.8-9.0 ppg mw. While MASP will equal the formation pore pressure at the next shoe,less a gas gradient to surface,it cannot be shut in,only diverted. After reaching casing depth the hole will be opened to 26". Calculations: MASP(pp)=((PP ppge)x.052 x TVD)-(gg x ND) MASP= 1500'ND x((8.4 ppge*.052)-0.1 psi/ft) 505 psi MADP=((PP ppg)x.052 x TVD) MADP= 1500'ND x(9 ppg*0.052) 702 psi Prepared by Stephen F.Henniganq 8/4/2014 Page 12 0 • Prepared by Stephen F.Henniganq 8/4/2014 Page 13 • I 4.9 Casing Design and Calculations Note: In this program,MASP for each hole section is defined as the pore pressure(in psi)at the next casing point(or TD)less a gas column to surface. Gas gradient is assumed to be 0.1 psi/ft. MADP is defined as the maximum pore pressure in the hole section. AT TIMES MASP CALCULATIONS WILL BE ADJUSTED FOR AIR GAP AND WATER DEPTH when applicable. Final Start Depth Seat Depth Casing . Interval Hole Size MD TVD MD TVD Size Wt(Ib/ft) Grade Conn Bunt Collapse Tension Drive/ StructurallCon Driven 0 0 160 160 9 5/8" 40 N80 N/A 3090 N/A ductor TD 8 12" 0 0 1500 1500 7 " 26 180 BTC M 7240 5410 604 Surface/Prod minimum of body and connection strengths RECOMMENDED Casing Design Factors BURST(from internal pressure) 1.1 COLLAPSE(from external pressure) 1 TENSILE(joint body and connection)strength 1.6 BURST REQUIREMENTS 7 TD Surface/Prod 8 1/2" Hole Section—estimated sore pressure of 8.4 ppg emw This hole section will be dulled to± 1500'TVD with BOP's installed/tested with a maximum anticipated mud wt of± 9 ppg from above MASP(pp)=((PP ppge)x.052 x TVD)-(gg x TVD) MASP= 1500'TVD x((8.4 ppge*.052)-0.1 psi/ft) 505 psi MADP=((PP ppg)x.052 x TVD) MADP= 1500'TVD x(9 ppg*0.052) 702 psi MASP(pp)=((PP ppm)x.052 x TVD)-(Do x TVD) MASP Csg Design= 1500'TVD x((8.4 Dnse`.052)-0.1 osi/ft) 505 psi Burst Stress= MASP Csg Design is used since this is a production casing 505 psi Design Factor Burst Strength/Burst Stress= 7240/505.2 14.33 SF Prepared by Stephen F.Henniganq 8/4/2014 Page 14 • • Prepared by Stephen F.Henniganq 8/4/2014 Page 15 S COLLAPSE REQUIREMENTS Use an external pressure that the casing could possibly be put under. One design methodology uses pore pressure at the casing shoe with a gas gradient internally. 9 5/8" Drive/Structural/Conductor 7 TD Surface/Prod External Pore Pressure less gas gradient MASP= 1500'TVD x((8.4 ppge*.052)-0.1 psi/ft) 505 psi Design Factor Collapse Rating/Collapse stress= 5410/505.2 10.71 SF Prepared by Stephen F.Henniganq 8/4/2014 Page 16 • • TENSILE REQUIREMENTS Tension is usually defined as the body or connection tensile strength(whichever is least)compared to the buoyed weight of casing in mud when run. Buoyed weight is defined as weight in air minus the weight of displaced fluid that it is run in. Buoyed weight formula=MD Csg Wt(lb/ft)"(1-mw/65.45)where 65.5 is the avg wt per cu ft of iron in air. 9 5/8" Drive/Structural/Conductor 7 TD Surface/Prod Buoyed weight= 1500'MD x 26 ppf*(1-9ppg/65.45) 33638 pounds Design Factor= tensile strength/buoyed wt = 604000/33638 17.96 SF Prepared by Stephen F.Henniganq 8/4/2014 Page 17 • • 4.10 Casing Test Pressure Calculations Casing test pressures are based on the maximum of MASP or 50%of the BOP ram rating In this well,formation pressure is assumed to be the backup. See Casing design and MAWP calculations. BOP PROGRAM,Test Pressures and Casing Test Pressures MASP=Maximum Anticiapted Surface Pressure(psi) MADP=Maximum Anticipated Downhole Pressure(psi)@ TD Casing Size Casing Equipment Test Pressure Low/ High 9.625" Structural Casing @ 160' 11"5M ANNULAR Function Test 70%of Burst WA Choke Manifold 250/500 Test Pressure' Function Test 7" TD Surface/Prod @ 1500' (1)Will NOT drill out Annular 70%of Burst 5068 (2)Will NOT drill out Pipe Rams Test Pressure 500 (1)Will NOT drill out Blind Rams MASP 505 MADP 702 MASP Casing Design 505 50%of minimum internal yield 3620 Prepared by Stephen F.Henniganq 8/4/2014 Page 18 • 4.11 Blowout prevention Equipment Details,Testing and General Procedures SEE ATTACHED DRAWINGS Testing: Onsite supervisor will verify all pressure tests.All tests are to be recorded on the IADC and DDR reports.ALL are to be charted.AOGCC to verify BOP tests(48 hr notice) Casing Size 50%ot Casing Test BOPs Test Casing lin) Casing Burst MADP(psi) MASP(psi) Pressure Test Fluid Density MINIMUM 250 psi Pressure Low/hIgh (Psi)„ (lb/gal) Size&Rating (Psi) for 3 1/2"pipe DriveDiverter(5M 9 5/8" Pune test Annular) TD Surface/Prod 7 " 3620 702 505 500 8.8 (1)11"5M annular 500 0 / 4.11a The choke manifold will be rated 3 1/8"x 5000 psi. It will include a remote hydraulic actuated choke and a hand adjustable choke. Also on the location is a gas buster and a degasser. Flow sensors will be installed in the flowline and the mud pits will have a PVT system. All data will be available to the driller,company men and key individuals. 4.11b Function Testing: Function on each tour. Report test on daily drilling report(DDR)and IADC. Prepared by Stephen F.Henniganq 8/4/2014 Page 19 • I 4.12 Wellhead Equipment Summary Component/Description Wellhead SM STARTING HEAD WELDED ON DRIVE PIPE LARKIN STYLE GILLETTE SPECIAL(Installed after completion) Tree CBM USE SPACER SPOOL(s)AS NECESSARY SEE ATTACHED DRAWING Prepared by Stephen F.Henniganq 8/4/2014 Page 20 • • 4.13 Directional Surveying Summary Magnetic Interval MD(ft) MWDILWD Multi Gyro Multi Dog Other Remarks Drive/Structural/Conductor 0 160 TD Surface/Prod 160 1500 - x TOTCO 4.14 Directional Program Summary Well is to be drilled as a STRAIGHT hole. Surveys will be taken AT TOTAL DEPTH VIA ELINE. Comments MD Incl Azim Grid TVD VSEC Northing Easting Build Rate DLS (ft) (°) (°) (ft) (ft) (ftUS) (ftUS) (1100ft) (1100ft) quaternary grvl 10.00 10.00 705111 3609867 Lignite Creek FM 50.00 50.00 705111 3609867 Top Usibelli 135.00 135.00 705111 3609867 I Casing 1 160.00• 160.00 705111 3609867 Coal Seam 6-Suntrana FM 311.00• 311.00 705111 3609867 Coal Seam 5 447.00 447.00 705111 3609867 Coal Seam 4 809.00 809.00 705111 3609867 Coal Seam 3 995.00 995.00 705111 3609867 Coal Seam 2 1107.00 1107.00 705111 3609867 Coal Seam 1 1248.00 1248.00 705111 3609867 Healy Creek FM 1318.00 • 1318.00 705111 3609867 Coal T" 1360.00 1360.00 705111 3609867 TD 1500.00 • 1500.00 705111 3609867 Prepared by Stephen F.Henniganq 8/4/2014 Page 21 ! • Plots Well Profile STRAIGHT HOLE Prepared by Stephen F.Henniganq 8/4/2014 Page 22 • 4.15-4.16 Drilling Fluids Program Summary and Specifications Mud Program Overview ud Program: Drive pipe to x160'.Build Spud Mud&drill 81/2 hole to TD,Evaluate. Fluid Type: Gel Spud Mud(Modified Flo-Pro) Fluid properties listed below: Depth Mud WL Funnel PV Yield Point Gels pH API FL HTHP FL Chloride SLDS ppe Ye cp 16p100R 10sec/10min 250°F 1:100' %NOL (MD) sec/qt MOO le cc myl 160'-1500' 8.6-9.2 . 33-40 6-12 10-20 20/35 8.5-9.5 <6 N/A FW <8 1 Add Soda Ash to make up water to treat out any Ca.Pre-hydrate all Bentonite additions.Mix&pump prehydrated gel slurry in case of pea- gravel&massive sands,add Gelex for added viscosity. 2 Run all available solids control equipment for maximum solids control. 3 pH should be controlled with Caustic and/or Soda Ash 4 Control fluid loss immediately upon spud 5 Monitor losses AT ALL TIMES. Add sized SAFECARB(20,40,250)to the mud for seepage(<15 bph). 6 Maintain low gravity solid at<8%with dilution and solids control. 7 After reaching TD pump hi vis sweep and circulate the hole clean. 8 Condition drilling fluid per cementers after casing is landed to TD. 4.17 Solids Control Equipment Interval Shaker Desander Desilter Mud Cleaner Centrifuge Cuttings Dryer Cuttings Zero Discharge Comments Injection Run shakers with finest 0-Total Depth 1 screens possible.Discharge WILL occur as long as NPDES parameters are met. Equipment Specifications (typical but may not be exact depending on rig) Item (quantity,design type,brand,model,flow capacity,etc.) Shaker 1 LINEAR MOTION Degasser Vacuum Desander N/A Desilter N/A Mud Cleaner N/A Centrifuge N/A Cuttings Dryer N/A Cuttings Injection N/A Zero Discharge N/A Prepared by Stephen F.Henniganq 8/4/2014 Page 23 • 4.18 Cement Program Summary(Brief vendor prog is attached) Cementing Summary TD Surface/Prod I Size: 7 Setting Depth: 1500 ft. Annular Volume(No Washout): 193.90 cu.ft. Lead Slurry Density: 0 ppg Yield: 0 cu.ft./sx No.Sxs:I 0 I Specifications: 0 Desired Top of Cement: 0 Tail Slurry Density: 12 ppg Yield: 2.03 cu.ft./sx No.Sxs:I 180 Specifications: 8 Hour Compressive Strength of Tail Slurry: 500+ psi Total Volume:I 365.4 Icu.ft. Desired Top of Cement: 0 ft. 180 I I I I I I #VALUE I I I 11 I I #VALUE I I I I I *VALUE I I I I #VALUE I I #VALUE Comments: See cement prognosis for details and spacer specifications. Actual cement volume pumped will be determined by elog caliper and other parameters. Prepared by Stephen F.Henniganq 8/4/2014 Page 24 S 0 4.19 Bit Summary LIC/A.Inc.RFP- _ l MC#1 Proceed `� Recommended Bit ProyrJm . . .• • ; A - i 11, lie kJ %mase I't 1I John kamorw+is #AI l i, iuIi i I+l V*$I Mt11.Vi Mat, ♦roman H.J. H('Al Kt 1 141111 r ',etc I3 I1 *cc MI D tw _aria r1 n---__�QS i I>WI:p TOW 1(0? mu; 'Aug i?M M7 11411% RLMAIILS 1.1 , t*4*1 0 I i., ..r.1 ..P NV. i 11-1:2 '041-3 1,}ut; I..;14, *.? COX) , I I I) bo-Iso 8.3 .33 Set 7 in(.*- - Dal 1,313 i . '. , .---4 404 - I I Prepared by Stephen F.Henniganq 8/4/2014 Page 25 • • 4.20 Casing Test,FIT,Lot procedure Perform Casino Test(CITY -the pressure to which the casing should be tested should be 300-400 psi above the expected surface pressure needed for the leak off test.It is NOT necessary to retest to the APD casing test pressure. 1.GIH and clean out to the top of the float collar for casing test. 2.Circulate and condition mud until shaker is free of cuttings and mud weight in is within +/-0.1 ppg of weight out for several consecutive measurements. 3.Rig up,pressure test and check for leaks.Make sure air is purged from the system. 4.Pumping down the drillpipe,break circulation with cementing unit(or low voVhigh press pump). 5.Close annular BOP or pipe rams. 6.Pump down drillpipe at 1/2 bpm.Do not exceed this rate and maintain constant rate as well as possible.Record pressure at each 1/2 bbl increment pumped. NOTE:Larger than 11 3/4"use.75-1 bpm,11 3/4-9 5/8 use.75-.5 bpm-plot should be±greater than 45° 7.Continue until the test pressure(as described above)is reached.Do not exceed test pressure. Stop pump and shut in valve. 8.Monitor and record shut in pressure;hold for at least 5 minutes,or as specified.Troubleshoot problems if desired test pressure cannot be obtained. 9.Release pressure and record volume of fluid recovered during flow back. 10.Input recorded pressures and corresponding volumes on the Casing Test section of the"CSG-FIT"worksheet(in the yellow shaded area).This is the minimum volume line for the subsequent leak off test. Enter flow back when pressure is released. Prepared by Stephen F.Henniganq 8/4/2014 Page 26 • • Perform Formation Test(LOT,FIT,etcl -enter all the header information for the well,rig,casing size,shoe depth,mud weight,date and your name at the top of the form on the"CSG-FIT"worksheet. 1.Drill shoe track and+20'of new formation. POOH into the casing shoe.Circulate and condition mud until shaker is free of cuttings and mud weight in is within+/-0.1 ppg of weight out for several consecutive measurements. 2.Rig up lines,pressure test and check for leaks.Make sure air is purged from the system. 3.Pumping down the drillpipe,break circulation with cementing unit(or low voVhigh press pump). 4.Close annular BOP or pipe rams. 5.SLOWLY pump down drillpipe and maintain constant rate as well as possible.Required rate may vary,but first attempt should be at 1/2 bpm(OR same rate as casing test). Record pressure at each 1/2 bbl increment pumped and plot on the FORM INTEG.TEST(FIT)section of the"CSG-FIT"worksheet(in the blue shaded area). This will require teamwork among at least two,but better with three individuals.If the FORM INTEG.TEST(FIT) plot curves BELOW the Maximum Volume Line,stop and bleed off pressure then re-run the test at a higher pump rate(suggest 1/4 bpm higher). Note-also have someone record casing pressure from the choke manifold at the same--bbl increments. If these pressures differ from the drillpipe recorded pressures by more than 10%,notify the office. 6.Continue until leak off(fracture initiation)is detected as indicated by a change in the rate of pressure increase. This is determined by the leak off test chart and observation of the pressure behavior.Once leak off indications are noted continue to pump at constant rate to confirm.If the pressure resumes a constant rate of increase, continue pumping and watch for subsequent leak off indications.If the rate of pressure increase continues to decline,continue pumping for 3 more_bbl increments to insure fracture has occurred(a noticable pressure drop should be evident).If a sudden pressure drop occurs,stop pumping immediately. 7.Record instantaneous shut in pressure(ISIP). Monitor and record shut In pressure every minute for at least 10 minutes. See#11 below 8.Release pressure and record volume of fluid recovered during flow back. 9.If the measured leak off pressure is less than the predicted leak off,then a cement channel may exist.Whenever a cement channel is suspected,the LOT should be repeated for confirmation.If a channel exists there should be little or no improvement seen. LOT or FIT or PIT(in EMW)=pressure(psi)/.052 I easing shoe depth('TVD)+current mud weight(opal 10.If the Leak Off plot falls between the Minimum and Maximum Volume Lines,this is a good leak off plot.Pick the point on the curve where the line begins to break over(the rate of pressure increase has changed from a straight line).This is the leak off value.On a"jug"test,there is no bend.PPG equivalents are calculated on the right. 11.Input recorded pressures and corresponding volumes on the FORM INTEG.TEST(FIT)section of the"CSG-FIT" worksheet. Values should initially fall between the Maximum volume line and the Csg Test line. 12.Input recorded shut in pressures and corresponding times on the Shut In Pressure(ISIP)section of the "CSG-FIT"worksheet(in the yellow shaded area). This is indicated by ISIP and incremental time riP the bottom of FORM INTEG.TEST(FIT)section. Prepared by Stephen F.Henniganq 8/4/2014 Page 27 • • i lliks\ DRILLING OPERATIONS SUMMARY Healy Creek Exploration Project(Gas Only) - -'u& r HC #1 SIS- e°( Start Depth Seat Depth Casing Interval Hole Size MD TVD MD TVD Size Wt.(lb/ft) Grade Conn Burst Collapse Tension* Drive/ Driven 0 C) 160 160 9.625 40 N80 N/A 3090 N/A Structural/Conductor TD Surface/Prod 8.5 0 0 1500 1500 7 26 L80 BTC M 7240 5410 604 " =minimum of body and connection strengths Note: AOGCC MUST be notified 48 hrs prior to each diverter(annular)function and test. General: 1. Perform pretour briefings. Review/Address safety, health and environmental issues. 2. Conduct a "spill" and a "fire" drill weekly. (ALL crews and service personnel should participate.) Monitor and direct so that each person addresses their responsibilities correctly and overall areas for improvement. 3. Conduct pit drills tourly. Note response on morning report. Monitor and direct so that each person addresses their responsibilities correctly and overall areas for improvement. 4. Prior to drilling below drive/structural pipe, while circulating conduct a kick drill on diverter(an annular{bag}will be used as a diverter on this well) • Hold drills until crews are familiar with diverting procedures. • Function test the bag daily and record on the IADC report. • If a positive indication of influx is observed, mud will be pumped atthe fastest rate possible. The pumps will be switched to any available water if all the mud is pumped away without a kill. • Monitor the ground around the cellar/rig for possible broaching to the surface. 5. OTHER-as deemed by onsite supervisors. Page 1 • • ii 144,,, fi C ...:. 't Drive pipe: 1. 9 5/8" conductor with 2k casing valves should be already installed to ± 160ft. RKB. 2. MIRU drilling rig. Make sure all location services including phones and internet communication are in full working order. 3. Install casing head. Planned to be 9 5/8" slip on and weld with a 11" 5k top flange adapter. 4. Nipple up rental 11" 5M annular to be used as a diverter (install choke manifold, lines,etc). (Variance) 5. Function test. 6. Build spud mud. Perform full system test (AOGCC 48 hr. notice). 7. Prep to install mud loggers per logging program. Instruct same re dry ditch samples for AOGCC. 8. Inspect BHA equipment. P 9. PU 3 'h" IF drill pipe. Page 2 • I CiP Surface/Production: 1. Fin PU drill pipe, bit and BHA per bit proposal. Set up WEEKLY STATUS Report for the AOGCC. 2. TIH. Load hole with mud and wash to bottom of drive. C&C mud. Test casing to 100 psi. 3. Spud in well with 8.8 ppq mud weight. 4. Drill w/low rpm, gpm until stabilizers have exited drive pipe. 5. Drill 10' below base of drive pipe. Pull back in to casing and circulate out making sure all equipment is in working order. 6. Shut annular and test casing and formation to 100psi, recording on a chart. (This is a formation integrity [FIT] test.) 7. Drill ahead. Run max gpm, rotary, etc. as allowed. 8. Continue to drill a 8 1/2" hole to ±800' MD/ TVD (within ± 10' of Target 1) short tripping and pumping sweeps as considered necessary. Survey will performed by wireline at TD of well. (Variance) At section TD, pump a HIGH VIS sweep and circulate the hole clean. Monitor returns carefully. When tripping, KEEP HOLE FULL. If decision is made to core, C&C mud, and proceed to"Coring Procedure". 9. Continue to drill a 8 1/2" hole to short tripping and pumping sweeps as considered necessary. Continue to evaluate for markers for next target(s). MONITOR MUD LOSSES CONTINUALLY AND MAKE NOTES ON DRILLING REPORT AND MUD LOG THROUGHOUT THE "ENTIRE" WELL. May need to circulate for samples at ±10' above each target. NOTE: Anticipated Targets for possible coring are as follows: Coal Seam 4 809' Coal Seam 3 995' Coal Seam 2 1107' Coal Seam 1 1248' Coal"F" 1360' If determined to core, proceed to coring section. Then if sampling is desired, go to sampling section. 10. On drill breaks, circulate out. Monitor gas continuously. Increase mud weight only as necessary. Monitor mud volumes. 11. At TD of ±1500' MD/TVD pump HIGH VIS sweep and circulate hole clean. Make wiper trip. Repeat sweep and make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. TOOH. 12. RU logging company. Run open hole logs as per evaluation program from Century Wireline. QC THEN DISTRIBUTE IMMEDIATELY FOR REVIEW. Page 3 • • c r 13. EVALUATE. NOTE: Either proceed with running casing for welltest/completion below or submit Sundry per AAC 25.105 for Abandonment or per AAC.25.072 for Temporary shutdown OR per 20 AAC 25.110 for Suspension. 14. If decision is made to run pipe, make up packed BHA. TIH washing and reaming as necessary. Short trip. Circulate hole clean with MAX gpm and MAX rpm pumping high viscosity sweeps. Repeat. Make wiper trip. Repeat sweep and make sure pump is at MAX rate. Hole will require more than just circulating bottoms up. TOOH. 15. Condition mud to lower YP and gels. Monitor pill lag and mud log lag times to aid in adjusting cement volumes for hole washout. 16. Prep for excess mud, cement, rinse water, etc. disposal. 17. Run casing as follows Baker-Locking the shoe track: a) Shoe b) 1 jt casing c) Collar d) Casing e) Potential of a cement basket/DV tool ±100' above coal ±800' With centralizers placed as follows modifying per COMPANY program and discussion with engineer/supv. to ISOLATE potentially productive zones: f) Centralizers across the bottom 3 couplings (3) g) 1 centralizer across the coupling of every second jt for ±160' (3) h) 1 centralizer above and below each target interval adjusting for thickness (10) Coal Seam 4 Coal Seam 3 Coal Seam 2 Coal Seam 1 Coal"F" i) 1 centralizer every 100' to conductor (7) j) CENTRALIZER INSIDE CONDUCTOR AS CASING NEEDS TO BE CENTERED IN conductor(2) k) ESTIMATED TOTAL centralizers = ±23 18. Perform a running tag. Reciprocate casing. Circulate and condition mud at a rate not to exceed the AV around the collars while drilling. Prep to bump plug with fresh water. 19. RU cementing head and lines. Test to 500/3000psi. Cement casing PER cementing proposal, BE PREPARED TO TAKE MUD/CEMENT RETURNS THROUGH casing valves. Circulate hole clean while rotating if possible (should be able to rotate with power swivel—have swivel adapter for the casing). Make note of cement in returns. Page 4 • • 20. Land 7". If losses occur, pump plug for DV tool and cement. Wait on cement. Well Test/Completion: 21. ND BOPe. Cut 9 5/8" casing andremove 9 5/8" x 11"5m adapter. Cut and dress 7" casing. Install 7" slip on adapter on casing and weld. Install Larkin wellhead with upper ports plugged. 22. Rig up test pump with chart recorder on outlet valve. 23. Test 7" casing to 500 psi (Production MASP) adjusted for mw in use. 24. Close outlet valve and secure. 25. END OF PTD Procedure will be provided with a completion/well test sundry. ANY additional work requires Sundry approval. Overview 1. Remove plugs from Larking wellhead to access with eline. 2. RU eline and run GR/CBL. Correlate to OH logs. 3. RU lubricator and test. Perforate initial coal to be tested with casing guns loaded a 4 spf 90° phase. Verify correlation prior to perforating. 4. Run 2 3/8" 4.7 J55 or 2 7/8" 6.5 ppf modified 8rd tubing installing required completion hardware. Space out tubing and land in tubing hanger. ND BOP, install Bonnet and tree. NU tree and test to 2000 psi. 5. Perform perforate, swab and test procedures. (NOTE: Tubing will need to be pulled to run ESP. Page 5 • • 41:4 General Coring Procedure: 1. Determine coring interval, stop ±10' above interval to core. C&C mud. Following C&C mud strap out of hole, prepare to handle BHA. 2. Lay down bit and collar and PU 10' coring assy 3. TIH very carefully. Tag bottom 4. Cut core as per coring company representative. 5. POOH 6. LD core NOTE: All cores collected on this well are to be IMMEDIATELY preserved in sealed, airtight canisters to be sent in for gas content and desorption/adsorption analysis. 7. Proceed to drilling next interval or sampling. 8. While drilling ahead, prep for the next possible core run. General Sampling Procedure: NOTE: May be performed after logging open hole. 1. Following coring, prepare to handle BHA. 2. Lay down 10' coring assy. Pick up straddle packers and space out per footage determined by core and mud log. 3. TIH strapping pipe and setting down on slips very carefully. 4. Set packers per sampling company representative. Install FOSV on drill string. 5. Verify packer set. RU equipment for water lifting. (Have EL sampling tool and lubricator close by for immediate sampling when notified by sampling company.) 6. After water flow, RU lubricator and test. Take samples. 7. POOH w/eline. 8. Collect samples. NOTE: All water samples collected on this well are to be IMMEDIATELY preserved in sealed, airtight canisters to be sent in for gas content and other analysis. 9. Release packers and POOH very carefully. 10. Proceed to drilling next interval. 11. While drilling ahead, prep for the next possible core run. Page 6 • • Usibelli Coal Mine HALLIBURTC1N HC 1 2 CBM Production String 2.1 Job Information CBM Production String Job Criticality Status: GREEN Well Name: HC Well#: 1 Surface Casing 0- 160 ft(MD) Outer Diameter 9.625 in Inner Diameter 8.755 in Linear Weight 43.5 lbm/ft Open Hole 160- 1500 ft(MD) Inner Diameter 8.5 in Excess Factor 100% Production Casing 0- 1500 ft(MD) Outer Diameter 7 in Inner Diameter 6.276 in Linear Weight 26 lbm/ft Casing Grade L-80 Shoe Joint Length 84 ft HALLIBUPTON Proposal 122207-NC v 1.0 CONFIDENTIAL 4/11 • Usibelli Coal Mine HALL.IBUR?CIN HC 1 2.2 Estimated Calculations CBM Production String Stage 1 CEMENT: (1000 ft fill) 840 ft* 0.1268ft3/ft* 100% =213.04ft3 160 ft* 0.1508 ft3/ft* 0 % =24.13ft3 VariCem Al =237.17 ft3 =42.2 bbl Total Lead =95.31 sack CEMENT: (500 ft fill) 500 ft* 0.1268 ft3/ft* 100% = 126.81 ft3 VariCem Al = 126.81 ft3 =22.6 bbl Shoe Joint Volume: (84 ft fill) ( 84ft * 0.2148)ft3/ft = 18.05ft3 =3.2 bbl Tail plus shoe joint = 144.86 ft3 =25.8 bbl Total Tail =74.75 sack Total Pipe Capacity: 160 ft* 0.2148 ft3/ft =34.37 ft3 1340 ft* 0.2148 ft3/ft =287.87 ft3 =57.4 bbl Displacement Volume to Shoe Joint: Capacity of Pipe- Shoe Joint =57.4 bbl - 3.2 bbl =54.2 bbl HALLIBURTON Proposal 122207-NC v 1.0 CONFIDENTIAL 5/11 S • Usibelli Coal Mine HALLIBURTON HC 1 2.3 Job Volume Estimates CBM Production String Stage 1 Fluid 1: Rheologically Enhanced Spacer 10.5 lb/gal Tuned Spacer III Fluid Density: 10.5 lbm/gal 37.58 gal/bbl FRESH WATER Volume : 30 bbl 88.70 lbm/bbl Barite Fluid 2: Tail Slurry VARICEM(TM)CEMENT Fluid Weight: 12 lbm/gal Volume: 42.2 bbl Slurry Yield: 2.486 ft3/sack Total Mixing Fluid: 14.59 Gal/sack Top Of Fluid: 0 ft Calculated Fill: 1000 ft Calculated sack: 95.40 sack Proposed sack: 100 sack Fluid 3: Tail Slurry VARICEM(TM)CEMENT Fluid Weight: 13 lbm/gal Volume: 25.8 bbl Slurry Yield: 1.938 ft3/sack Total Mixing Fluid: 10.54 Gal/sack Top Of Fluid: 1000 ft Calculated Fill: 500 ft Calculated sack: 74.74 sack Proposed sack: 80 sack Fluid 4: Water Spacer Water Displacement Fluid Density: 8.33 lbm/gal Volume : 54.2 bbl HALLIBURTON Proposal 122207-NC v 1.0 CONFIDENTIAL 6/11 ©2013 Halliburton All Rights Reserved • Usibelli Coal Mine HALL.IBURTON HC 1 2.4 Volume Estimate Table CBM Production String Calculations are used for volume estimation.Well conditions will dictate final cement job design. Stage 1 Fluid# Fluid Type Fluid Name Surface Estimated Downhole Volume Density Avg Rate lbm/gal bbl/min 1 SPACER 10.5 lb/gal Tuned 10.5 5 30 bbl Spacer III 2 CEMENT VariCem Al 12 4 100 sack 3 CEMENT VariCem Al 13 4 80 sack 4 SPACER Water Displacement 8.33 4 54.2 bbl NOTE: These slurries and spacers will require lab testing. The additives and concentrations are estimates based on field experience in the area and may need to be modified prior to the job. The proposed spacer is designed to be generally compatible with water base mud systems. Compatibility testing with field mud samples used may indicate changes in the additive package and the related costs. HAL.LIBURTDN Proposal 122207-NC v 1.0 CONFIDENTIAL 7/11 ,Z. 0 0 Y TuO c L N N U- _ H _ O 00 (/) t (a U Y U C la C 1100.J 0- E E 0 a 0 c 2 lir-) X 0 -a C ! o! ! t713L C L '- co a, coco 2 ao L Y O i o +J N 4- aJ C a f9 > U L7 Y dA > 0O 2 m D o o o a Allinik : 1011.11111 aJ c in aJ (n o 0 Y CO U f6 cc aJ 0- E:a c co _ l6 ro0 S 8/1/2014 6b 11 in Annular BOP Schematic.xls AAOA Rio 111 Operator UCM Well HC#1 KB Elevation Date: 7/27/2014 "Rig Flnnr" Flow Flow line Nipple 111 111 III III III HYDRIL"GK"ANNULAR 11"5000 HhdrtO1: ' h" 47-13/16 rjl I _ DRILLING SPOOL 11"5000 W UAW 2"SM 011/4"5M OTI ® -4I® 11 r 24"FLGTOFLG rtr rtn 2'5MMGV X2 DSA-4"5MX3"5M 111111.1111.11.11 3"5M MGV III' III III III 'III 3"5M HCR II 11"5m adapter(to 9 5/8") "weld on" Page 1 • S ALL AMERICAN OILFIELD ASSOCIATES 11" 5M USIBELLI 2014 HYDRIL"GK"ANNULAR 11"5000 Hydril"GK" 47-13/16" a � � DRILLING SPOOL 5000# 11"5000 I�� I ONO SSU I.. a.. 2"5M OTL/4" 5M OTI aca- 1.1,03- 11 ® Mud Cross ® 24" FLG TO FLG ■r■ ■1t ■1■ NMI ■t■ ■t■ 2"5M MGV X 2 '1500 DSA-4"5M X 3" 5M 3"5M MGV 3"5M HCR M :15: f5 0 til-' m .- c o f6 • C RS u v Q) v p _Y — CO c > cro o _c > �-I > U u1 u Y c m c 4! ! r. / 77 N it to (NJ cll > �. ..l (J Q b.0 /j .j > la • co O ro, > rk. z* o * > k LTh.:II ro o ---. o ro 715 > O O! k ti > n- .-i L!1 00 > T 0) m co co 00 c 7 _ Q7/ o y -4 V ; o CO 4] -• co > ' -* -. i = 3 , ,/ oo cn N f(6 7 i k c 0 ^tl 0) - 0 � ' 0 _ > a a.*�{{ O �' t 7 E. o t i n— co I\ oo o > 7 > Ili' C6 m c > > 0 x CD it Y QJ o o 0 Ll 0 u Q o L _ Ln n -a ' OUO u co a _ M u N ca _O �n 4= 00 '--/M V) V) t < C o M • • T PE BARE Tu ':' =-1 LARKIN_ 1500 PSI WORKING PRESSURE TL5Z'�1G tram °/� I CABLE P PT INTERM{xTQ ¢ALicOFF li AUXILAPr PONT ZNTETET c.- PAiCK.Cfr A, Lr TCP NUT \\N,.. 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TU IN9 TWO. 2 3/8' a A3. TUB:513 TIRO. c2) ).'2' NAT NOSTEEL 10423aom 2 3/8' 8 RD, TL8TN0 THAD, 2 3/8' 8 RO. TUB:'4) THAD. I '.0 1 1/2" L.P. 1,R DUCTILE 10i238.09.7 2 3/8' Il RD. TLBINO Tt9 D. 9 3/8' 8 P.D. ILO:No AVD. (2) 1/2' PPTL.P. -*PD. DUCTILE ICl238881/ TWO.3/8' 8 RD. TLETNO T . 2 3/8' 8 RD, TUB:NO THAD. t2) 1,2- MPT 1NTtsRATEE CtxTII.I '104380813 2 3/8.' a RD. TL81NO TWO. 2 318' 8 P.D. 146:y3 TWO, (3) 1/2' NAT INTE itTED DUCTILE 1012360921 2 3/8' 8 Q. "..5:N8 THAD. 2 3/8' 8 P.D. TLB:92 TWD. (2) 1/2' MPT )NTE OAATED "EEL, . Km236882111 2 3/A' 8 RD, 7L,$:No 7rf2D. 2 3/8' 8 PD, TUBI M3 TWD. (2) I12` PT 1 1/2- L.P. 7440. DUCT1L£ 1213360925 2 3/6` 8 FD. Tt.6:NO THAD. 2 3/8' 6 PD. 71.161Mr TWO, PC 1' L.P. W . STEEL Kr2278OS4 y 2 7/8' 8 RD. T.b:NO T-RD. 7/8' 8 RD. TUR:PX; TIRO. (2) 1/2' PPT NO STEEL KM2780841 2 7/8" a AO. TLB:No THAD_ 2 7/a' a P.D. TLB:51i THRo. (I) 1/4' PPT NO1 M STEED " 88084 3 1/2' 8 TD. T.,B:NO ToRD. 3 1/2' 8 RD, TL8 4) TWO. (2) 1/2- PPT ., ND�� 1 aTEEL 1 Km49808 4" L.P. I,-RAD 4' L.P. Ti-PEA NO i NO ' rEL- - 37 — Body_t.indd 36 3/7/07 12:39:35 PM • TROUGH PILL PIT SHAKER SHAKER VACUUM AGITATOR #1 #2 DEG, ASSER -IX MIXING PIT#1 PIT#2 PIT#3 HOPPER CUTTING BOX RIG 111 450 BBL MUD SYSTEM (NOT TO SCALE) AM _ A 061 0 4 Usibelli Coal Mine, Inc HC#1 • • Davies, Stephen F (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Wednesday, August 20, 2014 1:58 PM To: Davies, Stephen F (DOA) Cc: Roby, David S (DOA); Schwartz, Guy L (DOA); Mitch Usibelli; Pete Dickinson Subject: RE: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Attachments: Map Usibelli water.docx Mr. Davies We had previously reviewed the near area for near water wells but did not review an expanded area because of the reported geology, but as a result of your request, we expanded our review. Also, initially, a cursory review of the location and nearby area indicated no known agricultural activity as well. Below are the AOGCC's questions and our responses in red. 1. Are any of the coal seams or interbedded sediments currently used as sources of drinking water? The coal seams and interbedded sediments UCM plans on penetrating are not currently being used as a source of drinking water. 2. What is the distance from the planned CBM exploratory well to the nearest water wells? How deep are those wells?The distance to the nearest known usable water well is approximately 3.5 miles. A summary of the area is provided in the attachment. The WELTs recorded well depths are reported to be 99' and 205'. 3. Have any water samples been taken from the nearest wells or any of the targeted coals seams? Were those samples analyzed for Total Dissolved Solids? If so, please provide those copies of the results of those analyses. The closest well was not analyzed for TDS. However the "Confidential Report" titled Usibelli HC#1 Supplemental Information ODPCP Exemption submitted to you August 8, 2014 does contain some water analyses from the core holes. Should this become a development project and more wells be planned to be drilled, we will present a monitoring plan if applicable as those wells will be drilled for"regular" production. We hope we have answered your questions sufficiently, but if there is anything we are missing please let us know and we will get right on it. ri foa Project Manager/Engineer PETROLEUM T ENGINEERS, INC. 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 1 • • From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Tuesday, August 19, 2014 7:05 PM To: Stephen Hennigan Cc: Roby, David S (DOA); Schwartz, Guy L(DOA) Subject: RE: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Steve, We have a few questions regarding Usibelli's planned CBM exploratory well. 1. Are any of the coal seams or interbedded sediments currently used as sources of drinking water? 2. What is the distance from the planned CBM exploratory well to the nearest water wells? How deep are those wells? 3. Have any water samples been taken from the nearest wells or any of the targeted coals seams? Were those samples analyzed for Total Dissolved Solids? If so, please provide those copies of the results of those analyses. Thank you for your help, Steve Davies AOGCC 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. From: Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Monday, August 04, 2014 3:47 PM To: Davies, Stephen F (DOA) Cc: Schwartz, Guy L (DOA) Subject: RE: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Please do not forget to look for the Linc wells—they were not Pioneer Tial pa c.54244, Otear/acfeaaordur Project Manager/Engineer PETROLEUM ENGINEERS, INC. M H.rar, o!' (-W ,p.,r,, 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 2 • • From: Davies, Stephen F (DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, August 04, 2014 6:11 PM To: Stephen Hennigan Subject: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Steve, The Alaska Oil and Gas Conservation Commission (AOGCC) is evaluating the likelihood that Usibelli's proposed Shallow Coal Bed Methane exploratory well may penetrate a formation capable of flowing oil to the ground surface. As I understand it, the nearest subsurface well control is about 40 to 50 miles to the northwest in the Nenana Basin. Has Usibelli drilled any stratigraphic test wells or core holes in the vicinity of their planned well? If so, have any of these wells encountered any signs of oil? Any additional information that you or Usibelli can provide from deeper (greater than 300') stratigraphic test wells will be very helpful. If any such information is confidential, please stamp it confidential and send it with a cover letter requesting that the information be held confidential by AOGCC. See Regulation 20 AAC 25.537(b). Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 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. 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RS3 ro 01f1.RR5/1(1.R75 k) D 0. o1n.nP/1o.nn o .10 MI w o n m 3 ` 11 ^ �� i DDXIUIN xi u a uivl 1111 i:D 0 in 13 f_l ilk J ,, .1 I (Ilk N .. . , . ' \\\ D 1 \ N Opa _ . ___„_ k 1 �.. � � o ; � 33 o ;,.)o b o 4 N 09.0P/9,00 ` o A sZat 09. /9. 09.77/9.75 5 11 911 I.Q?/1 n.9R • • Schwartz, Guy L (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Tuesday,August 19,2014 11:58 AM To: Schwartz,Guy L(DOA) Cc: Pete Dickinson Subject: Testing Casing UCM Healy Creek#1 Mr.Schwartz Per telephone request the UCM test procedure is planned to be as follows: 1. Verify choke line valves are closed. 2. RU kill line side to test pump. 3. Close annular 4. Close lower Kelly valve 5. Pressure to 100 psi and hold. Following drilling out of the conductor±10': 1. Pull up into casing. 2. Repeat above procedure. Note: These tests are not necessarily controlled as there are unknown formation characteristics. It is to assist in identifying some of the characteristics. These tests are for information only and to be used by UCM and the AOGCC. Mx/boa c.5944240 .5feett€10051.e.eisliuur Project Manager/Engineer '= PETROLEUM ENGINEERS, INC, 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 1 • Davies, Stephen F (DOA) From: Silfven, Laurie A(DEC) Sent: Tuesday,August 19, 2014 11:17 AM To: Davies, Stephen F (DOA) Cc: Colombie,Jody J (DOA) Subject: RE: Gas-Only Evaluation for Usibelli's Proposed Shallow Coal Bed Methane Exploration Well near Healy,AK You bet! Thank you! From: Davies, Stephen F (DOA) Sent: Tuesday, August 19, 2014 11:12 AM To: Silfven, Laurie A(DEC) Cc: Colombie, Jody 3 (DOA) Subject: Gas-Only Evaluation for Usibelli's Proposed Shallow Coal Bed Methane Exploration Well near Healy,AK Laurie, Attached is AOGCC's gas-only evaluation for Usibelli's proposed shallow coal bed methane exploration well near Healy. If you're not the right contact for this evaluation,could you please forward it? Please let me know if you have any questions. Thank you! Steve D. 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. 1 „'�7\\I%%i'sA THE ,,,FFFSTATE (� E Alaska Gil and Gas ”' \ 4 7� of f / &,s Tr P' ._n j.`ti 1 7 p�i :cy, Co., ' 1 n`�" e �' -_ }2 333 West Seventh Avenue GOVERNOR SEAN PARNELI. Anchorage, Alaska 99501-3572 Main: 907 279 1433 ®��L�� Fax: 907.276.7542 August 18, 2014 Charlotte L. MacCay Ms. Laurie Silfven Senior Permitting Manager Alaska Department of Environmental Owl Ridge Natural Resource Consultants Conservation 6407 Brayton Drive, Suite 204 Industry Preparedness Program Anchorage, AK 99507 555 Cordova Street Anchorage, Alaska 99501 Re: Request for evaluation of the likelihood that the Usibelli Coal Mine, Inc. Shallow Coal Bed Methane exploration well will penetrate formations capable of flowing oil to the ground surface. Dear Ms. MacCay and Ms. Silfven: By letter received June 23, 2014, Usibelli Coal Mine, Inc. (Usibelli) requested the Alaska Oil and Gas Conservation Commission (AOGCC) evaluate the likelihood that Usibelli's proposed Shallow Coal Bed Methane exploratory well may penetrate a formation capable of flowing oil to the ground surface and issue the results of that evaluation to the Alaska Department of Environmental Conservation (ADEC). Usibelli's letter states that the Shallow Coal Bed Methane exploratory well will be drilled exclusively into coal bed methane gas reservoirs located within Section 16, T12S, R6W, Fairbanks Meridian. The geologic basins and all wells discussed herein are located onshore in central Alaska. Results of This Evaluation Based on the information reviewed, the AOGCC concludes that it is highly unlikely that Usibelli's proposed Shallow Coal Bed Methane exploratory well will penetrate a formation capable of flowing oil to the ground surface if drilled to a maximum depth of 1,500' below the ground surface. AS 31.05.030(/) Under AS 31.05.030(l), the AOGCC evaluates the likelihood that a well at a natural gas exploration facility may penetrate a formation capable of flowing oil to the ground surface and issues a determination based on the results of its evaluation. The AOGCC considers Usibelli's request as an application for an evaluation under AS 31.05.030(l). • • Ms.MacCay and Ms. Silfven August 18,2014 Page 2 of 6 0 Fairbanks r (5) . ,„ , �a8 Se°a • • Nenana 1 Nunivak 1Nenana i AndersonQaS ‘° ,. a Totek Hills 1 e°a� • � N N MAP SYMBOLS Coa,8016 0 10 Mi • City/Town Ferry • f Co 4/o, Ferry Highway o%,. Coal Field %, • Well Coal Field Reported oil seeps: Shallow CBM Exploration Well (Proposed) all are disproved Healy • • - or doubtful ■ Coal Fields Su rano mage`aa+ra` ir.a r1(,(x N,Ic 4arth Imagery Date:4/9/2013..6420'35.95"Id 148`3805.52`W ele. ,. eye aft 83 ,, Satellite Photograph of the Healy-Nenana-Fairbanks Area, Alaska' Documents Reviewed For this evaluation, the AOGCC reviewed: 1. Usibelli's application for determination; 2. Well logs, mud logs, and well records from the Nenana No. 1, Totek Hills No. 1, and Nunivak No. 1 exploratory wells; and 3. Publications from industry,2'3'4 the Alaska Department of Natural Resources,5'6 and the U.S. '8'9')o,t1,)2,)3,1a,)s,)b,t7,tst9 Geological Survey. Google Earth,2014,Satellite Photograph of Healy-Nenana-Fairbanks Area,Alaska downloaded July 30,2014 2 Van Kooten, G.K.,Richter,M., and Zippi,P.A.., 2012, Alaska's Interior Rift Basins: A New Frontier for Discovery, Oil and Gas Journal,January 9,2012 3 Weatherford Laboratories, 2012, Project BH-60425,Nunivak#1, Vitrinite Reflectance and MOA, in Alaska Department of Natural Resources,Alaska Division of Geological and Geophysical Surveys,Geologic Materials Center,Data Report Publication GMC 422 • • Ms.MacCay and Ms. Silfven August 18.2014 Page 3 of 6 These records provide evidence of the geological, reservoir, and reservoir fluid properties of the geologic formations that will be penetrated by Usibelli's proposed Shallow Coal Bed Methane exploratory well. Findings 1. Usibelli's proposed Shallow Coal Bed Methane exploratory well meets the statutory definition of"exploration facility under 18 AAC 75.990(40). 2. Usibelli's proposed Shallow Coal Bed Methane exploratory well will be drilled to a maximum depth of 1,500' below the ground surface. The well will be cored to sample and test potentially gas-bearing coal seams. 3. Usibelli's proposed Shallow Coal Bed Methane exploratory well will be located near Suntrana, Alaska, which lies approximately 10 miles south of the southern margin of the Nenana geologic basin (Nenana Basin). 4 Weathertord Laboratories,2012,Project BH-60425,Nunivak#1,Vitrinite Reflectance and MOA,in Alaska Department of Natural Resources.Alaska Division of Geological&Geophysical Surveys,Geologic Materials Center,Data Report Publication GMC 422 s Alaska Department of Natural Resources, Division of Oil and Gas, 2010, Healy Basin Gas Only Exploration License, Final Finding of the Director;June 28,2010 Meyer, J.F., Jr., 2008, Regional Surface Geology of the Nenana Basin, Alaska, Alaska Department of Natural Resources, Interior Alaska Oil and Gas Basin Resource Series,Plate 2 of 4 Miller,D.J.,Payne,T.G.,and Gryc,G, 1959,Geology of Possible Petroleum Provinces in Alaska,USGS Bulletin 1094 8 Merritt,R.D., 1985,Coal Atlas of the Nenana Basin,Alaska,Alaska Department of Natural Resources,Division of Geological and Geophysical Surveys,Public Data File 85-41 9 Csejtey,B.,Jr.;and others, 1986,Geology and Geochronology of the Healy Quadrangle,Alaska,USGS Open-File Report: 86- 396 10 Kirschner,C.E., 1988,Map Showing Sedimentary Basins of Onshore and Continental Shelf Areas,Alaska:U.S.Geological Survey Miscellaneous Investigations Map 1-1873 Stanley, R.G., 1988, Hydrocarbon Source Potential and Thermal Maturity of the Sanctuary Formation (Middle Miocene), Northern Foothills of the Alaska Range, in Galloway, J. P., and Hamilton,T. D., eds., Geologic Studies in Alaska by the U.S. Geological Survey during 1987:U.S.Geological Survey Circular 1016,p. 117-120 12 Stanley, R.G.,McLean, Hugh, and Pawlewicz, M.J., 1990,Petroleum Source Potential and Thennal Maturity of the Tertiary Usibelli Group of Suntrana,Alaska,in Dover,J.H.,and Galloway,J.P.,eds.,Geologic Studies in Alaska by the U.S. Geological Survey, 1989:U.S.Geological Survey Bulletin 1946,p.65-76 13 Csejtey, B., Jr., and others, 1992, Geology and Geochronology of the Healy Quadrangle, South-Central Alaska: U.S. Geological Survey Miscellaneous Investigations Series Map 1-1961 14 Stanley,R. G., 1995, Central Alaska Province(002), in Gautier, D. L.,Dolton, G.L., Takahashi,K.1.,and Varnes, K.L.,ed., 1995 National Assessment of United States Oil and Gas Resources--Results,Methodology,and Supporting Data:U.S.Geological Survey Digital Data Series DDS-30,Release 2 15 Johnsson, M.J. and Howell, D.G., 1995, Thermal Evolution of Sedimentary Basins In Alaska, U.S. Geological Survey Bulletin 2142 16 Troutman,S.M.and R.G.Stanley,2002,Map and Digital Database of Sedimentary Basins and Indications of Petroleum in the Central Alaska Province,U.S.Geological Survey Open-File Report 02-483 17 Troutman,S.M.and R.G. Stanley,2003,Maps Showing Sedimentary Basins,Surface Thermal Maturity,and Indications of Petroleum in the Central Alaska Province,U.S.Geological Survey Miscellaneous Field Studies Map MF-2428 18 Flores,R.M.,Stricker,G.D.,and Kinney,S.A.,2004,Alaska Coal Geology,Resources,and Coalbed Methane Potential,USGS Data Series DDS-77 19 Stanley,R.G.,and Lillis,P.G.,2011,Preliminary Interpretation of Rock-Eval Pyrolysis and Vitrinite Reflectance Results from the Nunivak 1 Well in the Nenana Basin,Central Alaska,SPE/AAPG 2011 Western Region Meeting,Anchorage,Alaska,May 6 —14,2011,p.87-88 • • Ms.MacCay and Ms. Silfven August 18.2014 PaL!e4of6 4. Since 1918, coalfields near Healy and Suntrana, Alaska have been explored and mined20 with no reported indications of the presence of naturally occurring oil. 5. The seven historical reports of oil seeps in the Healy-Nenana-Fairbanks Area were not verified by U.S. Geological Survey field investigations.21.22 6. Coal fields in the Healy-Suntrana area occur in strata assigned to the Tertiary-aged (Eocene to Miocene). non-marine Usibelli Group that comprises, in ascending stratigraphic order, the Healy Creek, Sanctuary, Suntrana, Lignite Creek, and Grubstake Formations. Most coal seams within these formations are classified as sub-bituminous in rank (degree of metamorphism). The total thickness of coal-bearing strata in the Healy-Suntrana area does not exceed 3,000'.23 7. Within the Nenana Basin and the coalfields in the Healy-Suntrana area, the Usibelli Group lies beneath the Nenana Gravel that was deposited in a series of coalescing alluvial fans that developed along the north side of the Alaska Range as it rose during the Tertiary Period (Miocene to Pliocene).24 Rock-evaluation pyrolysis analyses conducted on coal and mudstone outcrop samples from 8. Y PY Y the Usibelli Group collected near Healy and Suntrana range from fair to very good as potential sources of petroleum. Vitrinite reflectance analyses (expressed in units of mean percent reflectance, or %Ro) for 104 samples range from 0.22 to 0.44, with three other samples measuring 0.18, 0.49, and 0.50.25 The onset of temperature and pressure conditions conducive to oil generation is associated with a%Ro value of about 0.60.26 9. The Usibelli Group lies unconformably atop Precambrian- or Paleozoic-aged metamorphic schist27 that will not serve as a source of oil. 10. The nearest potential source of oil lies in the deeper portions of the Nenana Basin, about 40 to 50 miles northwest of Usibelli's proposed Shallow Coal Bed Methane exploratory well. Five exploratory wells are located in this portion of the basin: Nenana No. 1, Totek Hills No. 1,Nunivak No. 1,Nunivak No. 2 and Nunivak No. 2A. 11. Nunivak No. 2 and Nunivak No. 2A are exploratory wells drilled and tested by Doyon, Limited during the summer of 2013. All records and information from these wells submitted to the AOGCC are confidential under AS 31.05.035(c). Records and information from the Nenana No. 1, Totek Hills No. 1, and Nunivak No. 1 exploratory wells are public. 12. Union Oil Company of California drilled Nenana No. 1 to a depth of 3,062' during 1962. Sandstone was the dominant lithology; siltstone and mudstone occurred in lesser amounts, with scattered, interspersed coal seams. Nenana No. 1 encountered metamorphic tuff at 2,590' and schist at 2,800'. The mud log from this well records only methane gas. The wellsite geologist's descriptions of sidewall and conventional cores clearly note the absence of oil indicators. Nenana No. 1 was abandoned without testing. 20 Flores and others,2004 21 Miller and others, 1959 22 Troutman and Stanley,2002 23 Csejtey and others, 1992 24 Stanley and Others, 1998 25 Data from: Stanley, 1988;Stanley and Others, 1990;Flores and Others,2004 26 Stanley and Lillis,2011 27 Stanley and Others, 1990 • r Ms. MacCay and Ms. Silfven August 18,2014 Page 5 of 6 13. ARCO Alaska Inc. drilled Totek Hills No. 1 to a depth of 3,590' during 1984. Sandstone and conglomerate dominated the drilled section, with lesser amounts of claystone, shale and coal. Phyllite and quartz-sericite schist extended from 3.166' to the total depth of the well. The mud log records predominantly methane gas, with only scattered occurrences of very small amounts of ethane and propane. Conventional cores recovered sandstone, conglomerate, claystone, lignitic to sub-bituminous coal, phyllite, metamorphosed siltstone, and schist. No indications of oil were reported. Totek Hills No. 1 was abandoned without testing. 14. Rampart Energy Company drilled Nunivak No. 1 to a depth of 11,136' during 2009. encountering, in descending order, the Grubstake, Lignite Creek, Suntrana, Sanctuary, and Healy Creek Formations prior to reaching total depth in the lowermost portion of the Usibelli Group. Sandstone dominated the drilled section, with lesser amounts of claystone and coal. The mud log records methane below 1,320' depth, with ethane, propane, and butane first occurring within the Sanctuary Formation at about 7,050'. Pentane encountered within the Healy Creek Formation coincides with asphalt additives introduced into the drilling mud at 9,750'. Coal seams are common below 7,200', within the Sanctuary and Healy Creek Formations and the lower portion of the Usibelli Group. The maximum downhole temperature reported for Nunivak No. 1 is 183.2 degrees F (84 degrees C).28 Rock-evaluation pyrolysis analyses conducted on 23 coal and mudstone samples from the Healy Creek Formation and lowermost Usibelli Group within Nunivak No. 1 indicate these coal seams and mudstone intervals are potential sources for oil and gas. Vitrinite reflectance analyses suggest the top of the oil-generating pressure-temperature regime (%Ro = 0.60) lies at about 10,400' in this well.` However, the only slight indicators of oil observed in this well occurred in the lowermost Usibelli Group between 9,650' and 10,500'. These oil indicators comprised scattered occurrences of very faint, light yellow sample fluorescence and a trace of brown oil stain on grains recorded at 10,465'. Nunivak No. 1 was abandoned without testing. 15.Near Healy, Suntrana, and Ferry, strata of the Usibelli Group have been folded and faulted into a series of smaller sub-basins with coal-bearing rocks eroded away in the intervening areas. 30 16. The extensively investigated and mined Healy-Suntrana area lies between the Nenana Basin and Usibelli's proposed Shallow Coal Bed Methane exploratory well. Conclusions Based on an evaluation of the documents and information referenced above, the AOGCC concludes: 1. The geologic section targeted by Usibelli's proposed Shallow Coal Bed Methane exploratory well will likely comprise sandstone-dominated strata interspersed with coal seams. 2. In the Healy-Suntrana area, extensive geological field investigations, coal exploration activities, and mining operations have not encountered any indications of naturally occurring oil. 28 Rampart Energy Co.,2009,Schlumberger Vision Service,Measured Depth Log for the interval from 7330'to 11089'MD 29 Stanley and Lillis,2011 30 Merritt, 1985 • • Ms.MacCay and Ms. Silfven August 18,2014 Page 6 of 6 3. The nearest exploratory wells, drilled 40 to 50 miles north in the Nenana Basin, encountered only traces of oil indicators. 4. Good quality, potential oil- and gas-source rocks are present in the Healy-Suntrana area and in the deeper Nenana Basin to the north; however, both of these areas appear to be immature to marginally mature with respect to oil generation (i.e., potential source rocks appear to have only recently—in terms of geologic time—encountered temperature and pressure conditions sufficient to generate oil). 5. Direct migration pathways are unlikely to exist from the deeper portion of the Nenana Basin to the site of Usibelli's proposed Shallow Coal Bed Methane exploratory well. For these reasons, it is highly unlikely that Usibelli's proposed Shallow Coal Bed Methane exploratory well penetrate a formation capable of flowing oil to the ground surface if drilled to a maximum depth of 1,500' below the ground surface. Please call Mr. Steve Davies at (907) 793-1224 if you have questions concerning this determination. Sincerely, OIL 0,0 le‘1:1\ / 0,4 ..� ,c0 Cathy P. Foerster Daniel T. Seamount, Jr cal, o� Chair, Commissioner Commissioner dpi g "T/ON CO RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a),within 20 days after written notice of the entry of this order or decision,or such further time as the AOGCC grants for good cause shown,a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed,then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration,upon denial,this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction,in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration,this order or decision does not become final. Rather,the order or decision on reconsideration will be the FINAL order or decision of the AOGCC,and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails,OR 30 days if the AOGCC otherwise distributes,the order or decision on reconsideration. In computing a period of time above,the date of the event or default after which the designated period begins to run is not included in the period;the last day of the period is included,unless it falls on a weekend or state holiday,in which event the period runs until 5:00 p.m.on the next day that does not fall on a weekend or state holiday. • • Davies, Stephen F (DOA) From: Mitch Usibelli <musibelli@comcast.net> Sent: Tuesday,August 19, 2014 10:51 AM To: Colombie,Jody J (DOA) Cc: Davies, Stephen F (DOA) Subject: Re: Signed Surety Bond and Determination Jody, Thank you! Mitch From: "Jody J Colombie (DOA)" <jody.colombie@alaska.gov> To: "Usibelli, Mitchel" <musibelli@comcast.net> Cc: "Stephen F Davies (DOA)" <steve.davies@alaska.gov> Sent: Tuesday, August 19, 2014 11:42:52 AM Subject: Signed Surety Bond and Determination Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Jody.ColombieWtlaska.gov Office: (907) 793-1221 Fax: (907) 2 76-7542 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 jodv.colombie@alaska.00v 1 • Schwartz, Guy L (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Monday,August 18, 2014 10:45 AM To: Schwartz,Guy L(DOA) Subject: RE: Emailing:4 Usibelli HC#1 General Drilling Operations RVSD 0814 2014, Wellbore(CBM) RVSD 0814 2014 Attachments: 11b 4.17 Example Cuttings Handling.docx The temporary waste impoundment is metal tanks-not a lined pit. Temporary storage addressed by ADEC. Thank you Stephen F. (Steve) Hennigan ProjectManager/Engineer 500 Dover Boulevard,Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 Original Message From:Schwartz,Guy L(DOA) [mailto:guy.schwartz@alaska.gov] Sent: Monday,August 18,2014 1:18 PM To:Stephen Hennigan Cc: Pete Dickinson; Mitch Usibelli; Davies,Stephen F(DOA) Subject: RE: Emailing:4 Usibelli HC#1 General Drilling Operations RVSD 08 14 2014,Wellbore(CBM) RVSD 0814 2014 Steve, I don't recall if we discussed cuttings and mud disposal .. can you elaborate on that? I didn't see anything in the PTD (page 11)except that it will be done as per regulations.What is your actual plan? Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message, including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at (907-793-1226)or(Guv.schwartz@alaska.gov). 1 • • ., v _._..._.____ ............,,. .,,,......„:::::......_ \ i\tX01 Tf+Vtt a�►�r.YFStE i�.4�"�t'�3"�N? ti ung s ,F}•t7 \it \\\ \\\ \\‘\11\ tt 1 1:I, ______,..--,-----\'\\1 \‘....., If AC:.FSS RAMP WASTF TRANSPORT ON ---- -- ExCAV'At01 ? f ------ 400 OPF r:T;.�.' ,/ TAW ill / .c:..1,, 1110 00 403 UN CPt N TOP TANK G. 5 9 i —'1'\ ,...\ \ Vacuum Trucks iii t i !Crl,tNN g RAC TANKS --- Example Drilling Waste Treatment Facility • • i \1 r[ t t ti4 r } \ TEMPORARY WASTE IMPOUNDMENT \ ‘ 1 Mr it RVtO# S\\\\ \� 1 L. 1 - ,,,,).t ACCESS RAMP --' WASTE TRANSPOR'ON --.t 7 EXCAYAT s. E WANK • 10 I/ + IL:::'; n et (P 407 5b4 CP,N/OP TANK -^--..17 3 1 ‘ \ ro c 3v+ Vacuum Trucks 1-41W4 �.f SOO NV fcRAC TANKS - Example Drilling Waste Treatment Facility Tiff: STATE •;..11 of En%gronnientai ''1;1141,14.0'.:°'A**4***:1:4.47" °JAL : € z 4 44i lI lthi s1'v PN PAN I)>.'lI"NS NN) ;RAM 109 69>, I August 20,2014 hk Not '505 OS (Natural Gu Kumptac ) Mitch Usibelli Charlotte MacCay License Representative&Project Manager Senior Permitting Manager Usibelli Coal Mine, Inc. Owl Ridge Natural Resource Consultant; P.O. Box 1000 6407 Brayton Drive,Suite 204 Healy,AK 99743 Anchorage,AK 99507 Subject: Exemption from Oil D', e Prevention and Contingency Plan and Financial Responsibility Requirements for UsibelliCoal Mine,Inc:.Shallow Coal Bed Methane Exploration Well,flealy,Alaska. Dear Mr.Usibeni and Ms.IvlacCar The Alaska Department of Environmental Conservation (department)received your August 19, 2014 letter requesting ting a natural gra ex tion for coal bed methane exploration near Healy,Alaska (Section 16,Township 12S,Range 6W,Fairbanks Meuthan). In 2014, Coal Mine, Inc. (Usibelli)plans to drill one vertical exploration welt on previously ously disturbed lands at an abandoned airstrip at Healy Creek In a June 23,2014 letter,Usibelli requested that the Alaska Oil and Gas Conservation Commission (A0Gt:C)evaluate the likelihood that the well would penetrate a formation n ble of flowing oil to the ground surface. Under.AS 31.05.030(1),AOGCC evaluates the likelik..' that a well at a natural gas exploration facility may penetrate a fomutt on capable of flowing oil to the ground surface and issues a determination based.on the results of its evaluation. AOGCC r+espon.ded with its determination in an August 18,2014 letter(attache), Based on A -, C's determination,the department is issuing and exemption from Oil Discharge Prevention and Contingency Plan (plan)and Financial Responsibility(FR)requirements. AOGCC reviewed Us lh's application,agency publications,and data from other wells in the vicinity that provide reliable evidence of the geological,reservoir,and reservoir fluid properties of the geologic formations that will be penetrated by Usibelli's proposed well. Based on the information reviewed,AOGCC concluded that it is highly unlikely that Usibelli's proposed coal bed methane exploratory well will penetrate a formation capable of flowing oil to the ground surface if drilled to a maximum depth of 1,500 feet below ground surface. $ .. ` Mitch Usibelli 1 2 • August 20,2014 Usibelli Coal Mine,Inc. Based upon AOGCC's evaluation and determination, the department hereby finds that the proposed shallow exploratory coal bed methane well,if drilled to a maximum depth of 1,500 feet below ground surface, meets the standards for exemption as a natural gas exploration facility under AS 46.04.050(c) and is exempt from plan and FR requirements found in AS 46.04.030 and AS 46.04.040. Be advised that should Usibelli penetrate a formation capable of flowing oil to the ground surface during the drilling of this well,operations must immediately be suspended and the department must be immediately notified. Usibelli must obtain plan and FR approval by the department prior to proceeding. This exemption does not relieve Usibelli of the responsibility for securing other federal, state,or local approvals or permits. Usibelli is still required to comply with all other applicable laws. This exemption applies to the proposed well. Should Usibelli plan to drill additional wells,another natural gas exemption must he requested. APPEAL: This is a final decision. Aggrieved persons with standing may appeal this decision to the Alaska Superior Court within 30 days as provided by the Alaska Rules of Appellate Procedure. If you have any questions, please contact Laurie Silfven at (907) 269-7540 or laurie.silfvert alaska.gov. Sinccrcl , 4111110r All ,"/ sGrSectionoarin Wood r Attachment: AOGCC August 18, 2014 letter 1:lectronic cc: Becky Spiegel, ADEC Chris Pace, ADEC Tom DcRuytcr,ADEC Laurie Silfven, ADEC Steve Davies,AOGCC Jody Colombie, AOGCC • Davies, Stephen F (DOA) From: Schwartz, Guy L(DOA) Sent: Monday,August 18, 2014 10:18 AM To: Stephen Hennigan Cc: Pete Dickinson; Mitch Usibelli; Davies, Stephen F (DOA) Subject: RE: Emailing:4 Usibelli HC#1 General Drilling Operations RVSD 0814 2014, Wellbore(CBM) RVSD 08 14 2014 Steve, I don't recall if we discussed cuttings and mud disposal .. can you elaborate on that? I didn't see anything in the PTD (page 11) except that it will be done as per regulations.What is your actual plan? Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission(AOGCC),State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Guy Schwartz at(907-793- 1226) or(Guy.schwartz@alaska.gov). Original Message From:Stephen Hennigan [mailto:shennigan@peiinc.com] Sent: Friday,August 15, 2014 2:18 PM To:Schwartz, Guy L(DOA) Cc: Pete Dickinson; Mitch Usibelli Subject: Emailing:4 Usibelli HC#1 General Drilling Operations RVSD 08 14 2014,Wellbore(CBM) RVSD 08 14 2014 Guy Attached is the revised drilling program and Wellbore diagram. The items we discussed have been addressed. I will email you a new wellhead drawing once I receive it. Appreciate it. Have a good weekend. Thank you Stephen F. (Steve) Hennigan 1 • • Project Manager/Engineer 500 Dover Boulevard,Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 Your message is ready to be sent with the following file or link attachments: 4 Usibelli HC#1 General Drilling Operations RVSD 08 14 2014 Wellbore(CBM) RVSD 08 14 2014 Note:To protect against computer viruses, e-mail programs may prevent sending or receiving certain types of file attachments. Check your e-mail security settings to determine how attachments are handled. 2 S • Davies, Stephen F (DOA) From: Mitch Usibelli <musibelli@comcast.net> Sent: Friday,August 08, 2014 10:24 AM To: Davies, Stephen F(DOA) Cc: Hennigan, Stephen; Pete Dickinson; Charlotte MacCay Subject: Re: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Steve, Steve Hennigan is out of pocket today, and I understand scheduled to meet with you again on Monday, so he requested I have Charlotte MacCay or someone from Owl Ridge drop off a hard copy packet of information this morning in response to your below request for additional subsurface well control information closer to the project site. We'll also drop a copy off for Guy Schwartz since the original request for determination was addressed to him and I understand he may also be working on our shallow gas hazard determination. We did request and mark it Confidential. Please let us know if you have any further questions. Thank you. Mitch Usibelli (206) 999-5665 (cell) From: "Hennigan, Stephen" <shennigan@peiinc.com> To: "Usibelli, Mitchel" <musibelli@comcast.net> Cc: "Pete Dickinson" <pdickinson@allamericanoilfield.com>, "Charlotte MacCay" <cmaccay@owlridgenrc.com> Sent: Monday, August 4, 2014 3:17:19 PM Subject: Fwd: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well FYI Begin forwarded message: From: "Davies, Stephen F (DOA)" <steve.davies(aalaska.gov> Date: August 4, 2014 at 3:10:45 PM AKDT To: Stephen Hennigan <shennigan(cr�peiinc.com> Subject: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Steve, The Alaska Oil and Gas Conservation Commission (AOGCC) is evaluating the likelihood that Usibelli's proposed Shallow Coal Bed Methane exploratory well may penetrate a formation capable of flowing oil to the ground surface. As I understand it, the nearest subsurface well control is about 40 to 50 miles to the northwest in the Nenana Basin. Has Usibelli drilled any stratigraphic test wells or core holes in the vicinity of their planned well? If so, have any of these wells encountered any signs of oil? Any additional information that you or Usibelli can provide from deeper(greater than 300')stratigraphic test • • wells will be very helpful. If any such information is confidential, please stamp it confidential and send it with a cover letter requesting that the information be held confidential by AOGCC. See Regulation 20 AAC 25.537(b). Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 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 Steve Davies at 907-793-1224 or steve.davies@alaska.gov. 2 • • Davies, Stephen F (DOA) From: Colombie,Jody J (DOA) Sent: Wednesday,August 06, 2014 8:35 PM To: Davies, Stephen F (DOA) Subject: Fwd: Usibelli Coal Mine,Inc. Attachments: Usibelli Bond.pdf;ATT00001.htm This looks great to me. How about you? Sent from my iPhone Begin forwarded message: From:JoAnna Ott<JoAnna@hale-ins.com> Date:August 6, 2014 at 4:33:43 PM AKDT To: "'Jody.Colombie@alaska.govi" <jody.colombieta@alaska.gov> Cc: David Hale<David@hale-ins.com>, "Glen Weaver(glen@usibelli.com)"<glen@usibelli.com> Subject: RE: Usibelli Coal Mine, Inc. Hi Jody- please find attached a copy of the signed bond for Usibelli Coal Mine, Inc. As discussed over the phone,the well section is left blank to be completed once the information is available. Please review this bond and let me know if anything needs to be changed. Once I have your approval, I will send in the mail. Thank you! JoAnna Lewis Hale&Associates, Inc. joanna@hale-ins.com (907)456-6671 These are the three choices that Usibelli has to secure a bond with the AOGCC. If you have any further questions, please call me. Surety Bond http://doa.alaska.gov/ogc/forms/10-402A.pdf Personal Bond http://doa.alaska.gov/ogc/forms/10-40213.pdf Assignment of CD http://doa.alaska.gov/ogc/farms/AssignCD.pdf If you have any further questions, please call me. Jody J. Colombie Special Staff Assistant • Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Jody.Colombie(aalaska.gou Office: (907) 793-1221 Fax: (907) 276-7542 Thank you! David R. Hale Hale&Associates,Inc. 100 Cushman Street#200 Fairbanks,Alaska 99701 P: (907)456-6671 F(907)452-5214 David.Halelie,Hale-Insurance.com 2 S • r STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION SURETY BOND BOND NUMBER 52BS8EP4457 PENAL SUM $ 100,000 KNOW ALL PERSONS BY THESE PRESENTS, That we, Usibelli Coal Mine, Inc. of the City of Healy , State of Alaska as principal, and Hartford Fire Insurance Company of Seattle,Washington , as surety, an authorized insurer under AS 21.09 whose certificate of authority is in good standing, are held firmly bound unto the Alaska Oil and Gas Conservation Commission in the penal sum as indicated above, lawful money of the United States of America, for which payment, well and truly to be made, we bind ourselves and each of us, and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. WHEREAS the above bounden principal proposes to engage in the drilling or operating of a well or wells subject to regulation by the Alaska Oil and Gas Conservation Commission at a location described as follows: C7 SINGLE WELL BOND -minimum penal sum $100,000 (except as otherwise allowed by the Commission under 20 AAC 25.025(b)) Unit or Lease Name Well Number Area of State Surface Well Location- Sec., Twp., Rng. and Mer. Surface Well Location - Alaska State Plane Coordinate System coordinates ❑ BLANKET BOND -minimum penal sum $200,000 Any and all wells drilled or operated by the principal in the State of Alaska. NOW, THEREFORE, the above bounden principal shall comply with all of the provisions of the laws of the State of Alaska and the regulations, rules, and orders of the Alaska Oil and Gas Conservation Commission in the drilling, operation, maintenance, repair, and abandonment of each well and the clearance of each location, and shall file with the Alaska Oil and Gas Conservation Commission all notices and records required by said Commission. Form 10-402A Rev.04/2011 Page 1 of 2 Submit in Duplicate S • 52BSBEP4457 100,000 BOND NUMBER (continued) I'ENAL SUM $ This obligation shall remain in lull force and effect until released by the Alaska Oil and Gas Conservation Commission in accordance with 20 AAC 25.025(c). August 2014 Witness our hand and seal this 6th day or Usibelli Coal Mine, Inc. I3y: Principal (Operator) Signature (attach Power of Attorney or other evidence oi authority of person signing) Glen Weaver, Vice President of Finance Printed name and title Witness our hand and seal this 6th day 0 i•August 2014 Hartford Fire Insurance Company I3y: Surety Signature David ft Hale, Attorney-in-Fact Printed name and title 441tc76],ui:6, fount r igned (Itesident Agent if necessary) PRINCIPAL BUSINESS CONTACT INFORMATION / ALASKA CONTACT INFORMATION Name: itct-LA b uks Name: 1 & A (...L.) Address: tRL )-1`' •4--4 c,1 Address: I Do 2—(c) City/State/Zip: LA-)wocAt..),,k4 , 1A-1A- cr80 up City/State/Zip: R, AL 3 k- )01 'Phone Fax: (20( ) S - 3 5— ) Email: “5 ; 1111 Official Use Only Below Line ALASKA OIL AND GAS CONSERVATION COMMISSION Approved: Commissioner Date Approved: Commissioner Date Approved: Commissioner Date (Requires approval by two Commissioners) Form 10-402A Rev,04/2011 Page 2 of 2 Submit in Duplicate • • Direct Inqulries/Claims to: POWER OF ATTORNEY THE HARTFORD Bond T-4 One Hartford Plaza Hartford,Connecticut 06155 call:888.266.3488 or fax:860-757-5835) KNOW ALL PERSONS BY THESE PRESENTS THAT: Agency Code: 52-019363 Ix Hartford Fire Insurance Company, a corporation duly organized under the laws of the State of Connecticut X Hartford Casualty Insurance Company,a corporation duly organized under the laws of the State of Indiana (x Hartford Accident and Indemnity Company,a corporation duly organized under the laws of the State of Connecticut r--1 H• artford Underwriters Insurance Company,a corporation duly organized under the laws of the State of Connecticut r----1 T• win City Fire Insurance Company,a corporation duly organized under the laws of the State of Indiana Hartford Insurance Company of Illinois,a corporation duly organized under the laws of the State of Illinois Ei H• artford Insurance Company of the Midwest,a corporation duly organized under the laws of the State of Indiana TT H• artford Insurance Company of the Southeast,a corporation duly organized under the laws of the State of Florida having their home office in Hartford, Connecticut (hereinafter collectively referred to as the'Companies')do hereby make, constitute and appoint, up to the amount of Unlimited • Grace A. Becker, David R. Hale, Bobby W. Hanson, JoAnna Lewis, Shana D. Pilkinton of FAIRBANKS, Alaska their true and lawful Attorney(s)-in-Fact,each in their separate capacity if more than one is named above,to sign its name as surety(ies)only as delineated above by®,and to execute,seal and acknowledge any and all bonds,undertakings,contracts and other written instruments in the nature thereof,on behalf of the Companies in their business of guaranteeing the fidelity of persons,guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law. In Witness Whereof, and as authorized by a Resolution of the Board of Directors of the Companies on August 1, 2009, the Companies have caused these presents to be signed by its Vice President and its corporate seals to be hereto affixed, duly attested by its Assistant Secretary. Further, pursuant to Resolution of the Board of Directors of the Companies, the Companies hereby unambiguously affirm that they are and will be bound by any mechanically applied signatures applied to this Power of Attorney. s S 401.1!2,,or .'., (4)44- '•nV 6 ,v. :i�.. trier ' • 9 + t41144..,�\ I 1004 :-..2°:9.7 3 u ,ll: • �,%+au,esr!„ r•bu'M► = 9%) �+ r970 LA...2.0vii.."LC), e........,L-.,a___ r're-...----.....:7 ______ Wesley W.Cowling,Assistant Secretary M.Ross Fisher, Vice President STATE OF CONNECTICUT ss. Hartford COUNTY OF HARTFORD On this 12th day of July,2012, before me personally came M. Ross Fisher,to me known,who being by me duly sworn,did depose and say:that he resides in the County of Hartford,State of Connecticut;that he is the Vice President of the Companies,the corporations described in and which executed the above instrument;that he knows the seals of the said corporations;that the seals affixed to the said instrument are such corporate seals;that they were so affixed by authority of the Boards of Directors of said corporations and that he signed his name thereto by like authority. ...0 • ctr tiecilt.+r /Ilia. ssLi Kathleen T.Maynard CERTIFICATE Notary Public My Commission Expires July 31,2016 I,the undersigned,Vice Pnssident of the Companies,DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies,which is still in full force effective as of August 6, 2014 Signed and sealed at the City of Hartford. a 'IN '-''4.. .1 t,... ..,0 „.„ it.,::::.. .,:0,,,,., ,. 1.9 a r : des,...4".4%., fs....„.:.1. .... -% Y.. `P' �9 eif —, hNVL7/ 46:00) 1... tD79 F ig79 '� Gary W.Stumper,Vice President POA 2012 • • CERTIFICATE OF RESOLUTION AND AFFIFAVIT FOR SELF BONDING IT IS HEREBY RESOLVED: That the Board of Directors for USIBELLI COAL MINE,INC. authorizes (;7 pn wpAvi r and Fred Wallis ,to sign an indemnity agreement for self bonding under the Alaska Surface Coal Mining Control and Reclamation Act(ASCMCRA)on behalf of Usibelli Coal Mine, Inc. The Board of Directors also certifies that the signed indemnity agreement is valid under all applicable federal and State law. See 11 AAC 90.207(f)(5)(B) BOARD APPROVAL A. Kirk Lanterman hereby certify that the Board of Directors adopted this Resolution on the 25 of February, 2013 • � NOTARY 00.2:8+ t�g4‘G m? i The forcgoi g inst ent ac�lcdgcd before me by �� P(5ca1}- A IP (Name of dividual) ‘‘Z� OF WA worn to and s sccriibed before me this AS day of ft. ,20)3 J } My Commission Expires:` raslaol (Signature of Notary Public) • • Davies, Stephen F (DOA) From: Stephen Hennigan <shennigan@peiinc.com> Sent: Monday,August 04, 2014 3:47 PM To: Davies, Stephen F(DOA) Cc: Schwartz, Guy L(DOA) Subject: RE: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Please do not forget to look for the Linc wells—they were not Pioneer aldra .94006,01 45fteefelacfe"..,§9,,w Project Manager/Engineer PETROLEUM ENGINEERS IN . 4 Horr,it.7ri oets ,,ry 500 Dover Boulevard, Suite 310 I Lafayette, LA 70503 Office: 337-984-2603 Mobile: 337-849-5345 From: Davies, Stephen F(DOA) [mailto:steve.davies@alaska.gov] Sent: Monday, August 04, 2014 6:11 PM To: Stephen Hennigan Subject: Gas-Only Evaluation for Usibelli's Planned Shallow CBM Exploratory Well Steve, The Alaska Oil and Gas Conservation Commission (AOGCC) is evaluating the likelihood that Usibelli's proposed Shallow Coal Bed Methane exploratory well may penetrate a formation capable of flowing oil to the ground surface. As•I understand it, the nearest subsurface well control is about 40 to 50 miles to the northwest in the Nenana Basin. Has Usibelli drilled any stratigraphic test wells or core holes in the vicinity of their planned well? If so, have any of these wells encountered any signs of oil? Any additional information that you or Usibelli can provide from deeper (greater than 300') stratigraphic test wells will be very helpful. If any such information is confidential, please stamp it confidential and send it with a cover letter requesting that the information be held confidential by AOGCC. See Regulation 20 AAC 25.537(b). Thanks, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) Phone: 907-793-1224 AOGCC: 907-279-1433 Fax: 907-276-7542 333 West 7th Avenue,Suite 100 Anchorage,AK 99501 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 Steve Davies at 907-793-1224 or steve.davies(a?alaska.gov. 2 • • Davies, Stephen F (DOA) From: Charlotte MacCay <cmaccay@owlridgenrc.com> Sent: Thursday, June 26, 2014 12:02 PM To: Davies, Stephen F(DOA) Subject: Usibelli OCPCP determination request Hello Steve, Could you confirm that you received the hard copy of the request for an ODPCP exemption determination for the Usibelli Coal Mine, Inc., Healy Basin Gas-only License, Healy Creek Exploration Project? I was also wondering if you could provide us with an estimate of how long it would take to process the request. Please let me know if there is any additional information I can provide. Sincerely, Charlotte Charlotte MacCay I Principal Scientist,Regulatory Owl Ridge Natural Resource Consultants,Inc. 6407 Brayton Drive,Suite 204 I Anchorage,Alaska 99507 Main 907.344.3448 I Fax 907.344.3445 I Mobile 907.317.9449 cmaccay@owlridgenrc.com I www.owlridgenrc.com Confidentiality Notice 1 Davies, Stephen F (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday, June 17, 2014 11:04 AM To: Charlotte MacCay Cc: Davies, Stephen F(DOA) Subject: RE: Usibelli Coal Mine Coal bed methane ODPCP exemption Could you please send the attached document to our office as a hard copy also. Steve Davies (Geologist)will be reviewing the document when he gets back from leave. Thanks, Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail, please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at (907-793-1226)or(Guy.schwartzh;alaska.gov). From: Charlotte MacCay [mailto:cmaccay@owlridgenrc.com] Sent: Tuesday, June 17, 2014 9:32 AM To: Schwartz, Guy L (DOA) Subject: Usibelli Coal Mine Coal bed methane ODPCP exemption To: Guy Schwartz Attached is a request for a determination to exempt the Usibelli CBM Healy Creek Exploration project from the ODPCP requirement. I will send a Plan of Operations in the next few days to accompany this request, but felt it was important in regards to a desired drilling program in August to send this to you immediately while we finish finalizing the Plan of Operations. Please call me if you have any questions or concerns. Sincerely, Charlotte G WacCay Charlotte MacCay I Principal Scientist,Regulatory Owl Ridge Natural Resource Consultants,Inc. 6407 Brayton Drive,Suite 204 I Anchorage,Alaska 99507 Main 907.344.3448 I Fax 907.344.3445 I Mobile 907.317.9449 cmaccay@owlridgenrc.com I www.owlridgenrc.com Confidentiality Notice 1 • • Davies, Stephen F (DOA) From: Schwartz, Guy L(DOA) Sent: Tuesday,June 17, 2014 10:45 AM To: Davies, Stephen F (DOA); Bettis, Patricia K (DOA) Subject: FW: Usibelli Coal Mine Coal bed methane ODPCP exemption Attachments: aogcc deternmination request_final 6 9 2014.docx Who is going to be GEO for this?? They should send us a hard copy?? Guy Schwartz Senior Petroleum Engineer AOGCC 907-301-4533 cell 907-793-1226 office CONFIDENTIALITY NOTICE:This e-mail message,including any attachments,contains information from the Alaska Oil and Gas Conservation Commission (AOGCC),State of Alaska and is for the sole use of the intended recipient(s).It may contain confidential and/or privileged information.The unauthorized review, use or disclosure of such information may violate state or federal law.If you are an unintended recipient of this e-mail,please delete it,without first saving or forwarding it,and,so that the AOGCC is aware of the mistake in sending it to you,contact Guy Schwartz at(907-793-1226) or(Guy.schwartzAalaska.gov). From: Charlotte MacCay [mailto:cmaccay@owlridgenrc.com] Sent: Tuesday, June 17, 2014 9:32 AM To: Schwartz, Guy L (DOA) Subject: Usibelli Coal Mine Coal bed methane ODPCP exemption To: Guy Schwartz Attached is a request for a determination to exempt the Usibelli CBM Healy Creek Exploration project from the ODPCP requirement. I will send a Plan of Operations in the next few days to accompany this request, but felt it was important in regards to a desired drilling program in August to send this to you immediately while we finish finalizing the Plan of Operations. Please call me if you have any questions or concerns. Sincerely, Char&otte G MacCay Charlotte MacCay I Principal Scientist,Regulatory Owl Ridge Natural Resource Consultants,Inc. 6407 Brayton Drive,Suite 204 I Anchorage,Alaska 99507 Main 907.344.3448 I Fax 907.344.3445 I Mobile 907.317.9449 cmaccay@owlridgenrc.com I www.owlridgenrc.com Confidentiality Notice 1 • • Mr. Guy Schwartz Senior Petroleum Engineer Alaska Oil and Gas Commission 333 W. 7th Avenue,Suite 100 Anchorage,AK 99501-3539 RE: Request for determination Dear Mr. Schwartz Usibelli Coal Mine, Inc. (UCM) proposes to drill a shallow Coal Bed Methane exploration well on their Healy Basin Gas Only Exploration License ADL 39060. This project is named the Healy Creek Exploration Project. This letter is a request for the Alaska Oil and Gas Commission (AOGCC), in accordance with AS 31.05.030(1),to make a determination to the Alaska Department of Environmental Conservation (ADEC) that evidence obtained through evaluation of the information contained in this letter provides reasonable certainty that the proposed well will not penetrate a formation capable of flowing oil to the ground surface and to therefore exempt the well from requirements to prepare an approved oil discharge prevention and contingency plan (ODPCP)and post the associated bond,. Related Statutes: Alaska Statute AS46.04.030(b) requires that exploration facilities must have an ADEC approved oil discharge prevention and contingency plan (ODPCP).AS46.04.040(b) requires that exploration facilities have proof of financial responsibility(FR)approved by ADEC. AS46.04.050 states that the provisions of AS46.04.030 and AS46.04.040 do not apply to a natural gas exploration if the AOGCC determines that the wells will not penetrate a formation capable of flowing oil to the ground surface. Project Summary UCM proposes to conduct exploration activities for coal bed methane on free and unencumbered state- owned mineral estates within the Fairbanks Meridian (Figure 1). The project area is a subsection of the Usibelli gas only exploration license area that consists of 204,883 acres of land.The proposed exploration activities would take place during the summer months on a 150 ft. by 150 ft.footprint of previously disturbed land and accessed by existing UCM roads and exploration trails.The project site is located approximately 6.5 miles east of the Nenana River,and the town of Healy.The project area is approximately 8 miles from the town of Healy and the closest boundary of Denali National Park& Preserve.The project area lies in the Denali Borough within the Tanana River Basin Plan area.The Tanana River Basin Plan defines these lands as multiple use and allows for gas and oil exploration in the area. Well Description: The UCM Healy Creek Exploration Project will consist of a single vertical coal-bed methane exploratory well located at T12S, R6W,Section 16, Fairbanks Meridian (see Figure 1). As planned,the Healy Creek well will be a shallow well at approximately 1500 ft. in depth and will help UCM determine whether subsurface coal seams contain sufficient quantities of methane gas to justify further exploration. • The well will be drilled either by a mud rotary system or a diamond drill rig.The planned hole will include cored intervals or be continuously cored,to its proposed total depth, to sample and test any gas- bearing seams identified. PrVi Healy Creek , .0. Explaratign Projec 1 �. g.c lk USIBELLI COAL MINE, INC. HEALY CREEK EXPLORATION PROJECT& _... -. - EXPLORATION LICENSE AREA Figure 1: Healy Creek Exploration Project location and boundary of UCM's Healy Basin Gas Only Exploration License ADL 39060. EXEMPTION RATIONALE The Healy Creek Exploration Project involves one shallow gas-only exploration well. The geology of the basin and the project site have been well defined, by extensive geologic investigations and mapping, and continuous coal exploration and mining operations over the last century. The formations have extensive outcrop exposures, due to the uplift and erosion occurring along the northern flank of the Alaska Range, that easily lend themselves to the study, mapping and testing of the formations. The resulting well defined geology of this relatively shallow, immature, non-marine deposit has resulted in no prior exploration for oil or conventional gas due to the lack of prospectiveness. Therefore no seismic data exists for the area, nor are there any pre-existing gas or oil exploration wells in the area,to • • currently reference. However the low potential to encounter oil in this area is more than adequately supported by other sources of information and evidence. While the shallow nature of the well and thermally immature deposit may be justification enough for an exemption to the ODPCP requirements, this additional information and evidence is provided to assist AOGCC in making its determination, and is as discussed below. - Shallow Nature of the Well The shallow nature of the well, estimated at 1500 feet in total depth, makes it highly unlikely oil will be encountered, and falls well within the range of depths similar programs in other regions of the state have typically been granted exceptions to the ODPCP requirements. - Immature Coal Classifications in the Healy Basin Coal bearing rocks have an organic or"maceral component". This maceral component can be broken down into types of macerals, two of which are particularly pertinent due to their presence in Alaskan geology.Vitrinites are a maceral component formed from the woody parts of plants that have a low potential oil component. Liptinites/exinites area a maceral component formed from the waxy, oily parts of plants that include compounds such as bitumite that have a high potential oil component. Bitumite, when present as the predominant maceral in source rocks, is indicative of oil shales and other oil source rocks. Coal bearing rocks in the Nenana Coalfield are generally classified as sub-bituminous;they have a maceral component that is vitrinite-rich. These coals typically contain over 85 percent vitrinite with only 5—15 percent liptinites/exinites and are therefore unlikely to produce oil. (Stach's Textbook of Coal Petrology. P.407). For oil to form in low bitumite/vitrinite rich subsurface rocks,the temperature of the rocks during their burial would need to be such that the vitrinites would reach a reflectance value of between 0.65 and 1.35% (Rmax)sometimes referred to as the "oil window". Vitrinite reflectance values are very important in oil exploration as it tells the geologist if the rocks have been heated enough to produce oil. Only high volatile bituminous B coal would approach the reflectance"oil window". Coal in the Nenana coal field have measured vitrinite reflectance values between 0.21 and 0.48 (Flores et al, 2004)and between 0.18 and 0.49 at Suntrana located only 4 miles from the project site (Stanley et al, 1989), all well below the "oil window". The coal in the Healy Basin area is classified as belonging to the Usibelli Group which includes five formations: Suntrana, Healy Creek, Sanctuary, Lignite, and Grubstake. All of the formations are of tertiary age and the total maximum thickness of coal bearing rocks does not exceed 3,000 ft. or^'900 m (Csejtey et al. 1992). The Healy Creek Exploration site will intercept coal seams#1-6 from the Suntrana formation. Coal classifications at Rosalie and Two Bull Ridge mines, along with other nearby past and future mining locations, as listed below, indicate that the Healy Creek exploration well will lie within sub-bituminous coal and will not intercept high liptinite/exinite bituminous, oil-bearing coal seams. Mine Name Distance from Coal Classification Formation Group Seam#'s Exploration Mined • • Site Hydraulic Pit 0.5 mile Sub-bituminous C Class Suntrana Usibelli 1,2,3,4 Rosalie 1 mile Sub-bituminous C Class Suntrana Usibelli 1,2,3,4 Gold Run 3 miles Sub-bituminous C Class Healy Creek Usibelli Moose, Pass Caribou Poker Flats 6 miles Sub-bituminous C Class Suntrana Usibelli 3,4,5,6 Two Bull 6 miles Sub-bituminous C Class Suntrana Usibelli 3,4,5,6 Ridge Jumbo 8 miles Sub-bituminous C Class Suntrana Usibelli 3,4,5,6 Dome Ii Exposed coal bearing rocks Mine �' 6 q*a.y+ trt T�xsst r,u r,i29 rtr l „ r Y Two Bull Ridge , Popovitch HosEAANA CREEK LEASES AIL Outcrops 04 Poker Flats Gold Run Pass Rosalie . Suntrana � Healy_ ... outcrops s ` tiraulic t Pit i Figure 2: Project area map showing locations of UCM mine sites and outcrops encountering Sub- bituminous C Class coals of Suntrana Formation in Usibelli Group. In the upper part of the sedimentary package,the coal-bearing formations are directly overlain by the poorly consolidated Nenana Gravels, consisting of mainly Pliocene strata that were deposited in alluvial- fan and braidplain sequences of pebble to boulder-conglomerate and coarse-grained sandstone with Interbedded mudflow deposits,thin claystone layers, and local thin lignite beds .The sequence is moderately deformed, is approximately 4,000 feet or 1,300 m thick, and occurs mostly along the • northern flank of the Alaska Range as a result of it uplift beginning in the late Cenozoic time period (Csejtey et al. 1992). The burial of the underlying coal-bearing group beneath the Nenana Gravels contributed to the maturation of coal seams to their current sub-bituminous and lignitic classifications. However, large portions of the Nenana Gravel sequence have subsequently been re-exhumed and eroded away from large areas of the basin,thereby re-exposing the underlying coal-bearing group, inclusive of the project area (Wahrhaftig, 1970, USGS Geologic Map of the Healy D-4 Quadrangle,Alaska, scale 1:63,360) Furthermore, below the Tertiary coal-forming formations in the Healy Basin is the Birch Creek schist or related metamorphic rocks.These rocks, by their formation, have passed way beyond the oil window. Thus no oil would have formed in them and then migrated upward into the coal-bearing strata. These crystalline basement rocks lie less than 500 feet below the proposed 1500 foot well TD. - Lack of Possible Oil Migration into Basin i The nearest source of potential oil is the Nenana Basin located between 30-50 miles or 50-80 kilometers to the northwest of the Healy Creek Exploration Project (Stanley et al. 1989) (see Figure 3). Not only is the migration of oil across this distance extremely unlikely, but numerous structural features exist between the two basins that prevent migration (see Figure 4). A series of parallel east-west trending anticlinal-synclinal structures and associated thrust faults exist as a result of compressive forces caused by the ongoing uplift of the Alaska Range (Ridgway et al, 2007). This also includes the Healy Creek reverse fault that lies approximately 2 miles north of the Healy Creek project site, with an estimated 4,000 feet of vertical displacement. The uplift on the north side of this fault has resulted in the removal by erosion of the entire Nenana Gravel sequence, and the Usibelli coal- bearing group, exposing the underlying crystalline basement complex to the surface and thereby prohibiting any migration of oil into the Healy Creek area and project site (see Figure 4). It is also important to note that while the generation of oil in the Nenana Basin has been theorized as possible,the four conventional oil &gas wells drilled in that basin to date have apparently not encountered any oil shows or confirmed the existence of oil to date (see Figure 3). • .i.r.,:.:::,:-:::'.':',-,,,1:-.--:;;!.::":-.;'-.%1.-.,--.-.4-,0',,F"':,..;..-',:.:1.:• ::.;'''..::'""'-' . 1.:N.,!.::-..:.'..."--1::" _ Nill '-':::::.'::,...,:''''''''': •trt.f.:MtgiYi ¥ 41'1 - ,,.:S:-.--...i.?"'J'..:Tiril ...:,,-,.'-ai'---..,:',,ili'll.':','',,,:::ij'-'-'"...:•11.r.:04:il:."..: ,..:...::::',.,:ii.h.'!''''':,...-::::.:,4,.,i .:01..44.,...,74,:::...iti:Ir—.,4*4 ••4;:f0im::1,!•....::......,:iiifilf*K. ....-.....,,f4r!:!„„„...: . -440ii:;H:::*..Fr::::=:.:,,::.::::.!"r,..'-•-. :-..: ..t f..„.....--.--;.4.1•:::!,11::,-:„:.:. 3Fatcy ' : x : e«J` a :¥�'s:..:t `'.,b ,��tt¥¥ttyyyy3��gqiYKS �""' (t`7 Ei tuft y y ° C3i tt tt t{r : +�. z #IVIttlIt:II 2 {.is'�Cip Nt cter«r t t t Are!. - ie?sriti:f�J A C� t�x kax • . .-arliiiii,NP-711t4i1;•.:,' :!, X - -- :H•.•.. . Itatvak rpt ti-1111 e�er tPl J} sf' • d1i'Nall,�,tlp a i:;,17:::... tea"" `:. ,� x yur.Stag u1 A las_. Lodte0a: ,,-.,;„.; -'.,J: A..::.:_..-.i;,.-...,::!f ;$';:iiiiiiiki,g,.„,,!!!,:. .A(.f.. '''!' hi ;,5 ttenara Bas r €�cyae t v ned Ca,..in'''. A + : i • Atiariat)le 1aC ; t„' City fl N anunx QC W ` ilk ..;',1_!:-.::::!',...:',:':•' :;1:',1!L " ;> y .� lB5°ek2tWWea[dylsaAda ska tip sc.btr r:2s1yrtspte 1 0 15 20 25 • Y • A''d € iltin . P Trays n a '•--',11701---- -”' � .:' €,: '•I . _. 'MW r 111A1_ �� ai' M�. mile Iy«.. Figure 3: Map showing location of Nenana Basin and conventional wells in relation to the Healy Creek Exploration Project. • • S Healy Creek Detailed Cross Section of the Usibelli Group and Nenana Gravel N ProlectH�1y —k hack + -- .,. s 6104-5100+Ottzs::et,;(:i 4441140,11,r - '�1 �g.• e$ Regional Cross Section i Basn I of the Tanana and Cantwell Basins Nenana A' Healy Basin AHak3dte" 1 �6m .,w._ Taut 1(projected) 'Nalana#1 d .. (Area of&ladedorass:xeroonabove) 41P-P < Sys c neaw+ea,wa.as�n i€mky([uavtr tgk 666616,66k6 Q. 6664.6.- {vsch 66e666from C-66,66;at 6L19662.6 H dansrc a�6`ra ,ek,Mt, W dhtYttPHg,14266566&7 064 661.61.burn ti'66)661stabg.3976660 5 0 — 25 KILUMErLRS 4 Qn°* 6 , 61x 66 Tx 76,1T Nomam C et(Ph 66666) r,"j iJk Katult6 mhtng.(Upper lun>yic ba Lower C7et66666ua6 66.666.6666 6666 F666666 6616661666i whew 1640,‘68) 6:26)Tb IFe66'1kren4164661l 6/6660kiroupttkguv ,6,1 6666616666) Q K Uret tcimnge Umt v6666666(616166Aed wherein d) T pi (mhaxak and 1 666 Or&Ftxnm'ons d;16666.6666} 7t TRnu 666166.66666666 ax ltmmemy ecnw SOd-Trim..1646o1€ t00 ak xhp1HoLr(dwettt.n.5 tawmd+Sewer. Ea Ta..-San6tuaty hanMnan(Maacenel ) Vtt-'IbwEanka S6kd(M a6ccGppsnn?) eraa�-SYScus awsy) TO Crea6663,11.11.121.1(04o..- MTh-T6662616n11; acnfn .¢a T LpTn.t rws 5 i M i Palce krnavmi6 Psk.Keary P6ak P t]. 6166666.1-NM,.,,, �\ .ltcxwt ra�3t •Exp;ar, r,Wc31 6_'1 r r o,e,g c 1 M 1Yic,rOat 1666666.066e(S( mn mrd[x.oa6aw} `�. T 1 r6ri r�kl b 3 w 1 nt.-'hTLak Cq+Wn.nM+nor Tawxc Pakcwwu) w .Aaaadeofhpttdrng Lsa .Amrx C a r.<.F neatN n ci rrn;.cz uc� D be-I3;rch L acs S6.166,6(rt+;camFuan or Lower Pa6com66) C{Prp('p.y,,.K. od.:, h,(Ih hnnn or E,awrrs ha3 ume) Figure 4: Cross Section showing geology and structural barriers to migration i n between the Nenana Basin and the Healy Basin and Healy Creek Exploration Project. - Lack of any Evidence of Oil Shows in Healy Basin The geology of the Healy Basin has been extensively investigated. The majority of the Healy Basin is a late Tertiary or Quaternary sedimentary basin with no past history of credible oil seeps (Troutman and Stanley 2002). Reported indications of possible oil seeps have been reported in three areas in and immediately adjacent to the license area. One seep was reported approximately 12-13 miles east of Ferry, along California Creek(Troutman and Stanley 2002). However, based on field investigations by the U.S. Geological Survey(USGS),this seep is regarded as doubtful (Miller et al. 1959). A second seep was reported approximately 7-8 miles east of Healy in the Nenana coal field along Healy Creek.This seep was determined to be a natural tar produced by distillation from burning coal beds (Miller et al. 1959).The third seep reported in the area was located approximately 15-20 miles northeast of Healy in the Nenana coal field. This seep is also regarded as doubtful based on field investigations by the USGS (Miller et al. 1959). The lack of oil seeps is further substantiated by the occurrence of extensive natural outcrops of the coal- bearing formations in the basin, and immediately adjacent to the project site, that have been widely studied with no indications of oil seeps (see Figure 5 and 6). Additionally, continuous coal mining and exploration has occurred in the Healy area for nearly a century. This includes over 70 years of exploration and surface and underground mining by UCM in the Healy Basin to depths exceeding 700 feet with no known observations of seeps or other physical indicators of oil presence (see Figures 2, 5 • • and 6). UCM has drilled and cored coal exploration holes in the area to depths of 500 feet to 700 feet, with no indications of any oil, and encountered only minimal pressures reaching maximums of 10-12 psi. '';,'.1„-..-.'%- , 4°-,,,,,;°-,-- ,,,,,,,,,',*;/".,!'"'v T'.1,,t, ,°°' '•''''' ,,t. ,,,, --°. 17.7:14° 1',. - ' --'.1,4:177:„.; , ",,..';''',I1.°''''' - ' ° ,41tile 46,,,,41- .°°,7•‘1,:\,1,*:"; '•°- . . .,1 ,.., , i xwei c .may - "'-..' 7 �q +rY r �, warmr m 8 r 'Aa # w x � u Figure 5: Images of exposed Usibelli Group outcro s: U er Left: Natural ex osure of t. p pp p ��;a� entire Usibelli Group sequence at Suntrana used by USGS as type section and overlying _' - ,..,.:-.'''.°,0„.';'''"'''''y11,1,4 �4Iti w �ii it Nenana Gravels (image: 1940 s) Upper Right: 0-,,,,,,,t y it k o mss p •:17,-"t'-' i� ilii�d�l Naii�� i lI � i,),',',,14 �� l�I � Natural exposure of Suntrana Formation at Popovitch Creek; Lower Left: UCM Bucyrus <<_ Erie 1300W walking drag with 325' boom �� ` t and 33 bcy bucket removing overburden at Fr11, r � � Two Bull Ridge mine site (see Figure 2 for 1 ,:Mpg `X • 1"hi _ '� ;k ; locations) • • Healy Creek Project x 9 C3u9croprs Outcrops Figure 6: Plate 18 from Barnes et al, 1951 USGS Bulletin showing local geology and outcrops adjacent to Healy Creek project site. The area immediately south of the project site was also mined by UCM in the 1970's. All coals encountered are ranked Sub-bituminous C Class with no indications of oil. - Gas-only License Issued The director of the ADNR Division of Oil and Gas has made a final finding that, on balance, issuing a gas only exploration license to UCM is in the best interests of the state. The exploration license grants the right to explore for gas only, not oil.ADNR has determined that the Healy Basin exploration license area has high potential for discovery of unconventional gas (coal bed methane or shallow gas) and a lower potential for discovery of deeper, conventional gas, but that the potential for oil is low. According to ADNR,the geology of the Healy Basin suggests that gas, specifically coal bed methane, is the most likely resource present in economic quantities. July 28, 2010 Healy Basin Gas Only Exploration License—Excerpts from the Final Finding of the Director,Alaska Department of Natural Resources Division of Oil and GAs The Healy Basin's greatest petroleum potential is for gas. Hydrocarbon potential is expected to be high for shallow coal bed methane (unconventional gas).The potential for discovery of conventional gas from the deeper basin is possible, but less likely. The potential for oil is low. For an accumulation of hydrocarbons to be recoverable,the underlying geology must be favorable. Favorable geology depends on the presence of source and reservoir rock,the depth and time of burial, and the presence of migration routes or geologic traps or reservoirs.Source rocks are organic rich sediments such as marine shale,sandstone, or limestone, which have been buried for a sufficient time and with sufficient temperature and pressure to form hydrocarbons. The Healy Basin's greatest petroleum potential is for natural gas. Cenozoic basins in central Alaska potentially contain accumulations of dry gas in mildly deformed, non-marine, coal bearing strata (Stanley 1995). The Alaska Cenozoic gas play is a hypothetical gas play identified in the 1995 National Oil S and Gas Assessment of the Central Alaska Province (Stanley 1995),which includes the Healy Basin.This play contains the potential source rocks coal and non-marine organic-rich mudrocks, potentially containing methane from biologic generation (Stanley 1995). Stanley(1995) also identifies the possibility of thermogenic gas buried in Tertiary strata near Cenozoic intrusions. Very little subsurface geological information is available within the Healy Basin exploration license area, and there is no documentation available quantifying the occurrence of hydrocarbons, either gas or oil, within the license area. However,the presence of a significant volume of subbituminous C rank coal within the license area and adjacent sedimentary basins, as well as observed gas seeps,suggests the high probability that shallow biogenic gas is present.This shallow biogenic gas is generated by and sequestered within the coal beds and juxtaposed reservoir quality sediments. Locally generated thermogenic methane may be near Oligocene to Paleocene igneous intrusions. Possible, but less likely, is the presence of thermogenic natural gas that has migrated up-dip from the deeper Middle Tanana Basin into shallow stratigraphic traps within the license area. It is not known whether the gas is of sufficient quantity to be commercially developable. SUMMARY CONCLUSIONS Extensive evidence exists supporting the Healy Creek Exploration Project is highly unlikely to encounter oil or oil-bearing formations between the surface and vertical depths of 1,500 feet or greater. The evidence supports a decision to be made with reasonable certainty that the proposed well will not penetrate a formation capable of flowing oil to the ground surface, and that the well should be exempt from requirements to prepare an approved oil discharge prevention and contingency plan (ODPCP) and post the associated bond, and to exempt the requirement for blow out equipment on the drill. The evidence supporting a decision is based on: ■ Shallow 1500 foot depth of the well; ■ Immature character of the sub-bituminous and lignitic classification of the coal seams in the region and project area; ■ Lack of possible migration from the closest basin with burial depths adequate to have possibly produced oil, due to the existence of significant distances and multiple intervening structures, and lack of any oil shows in the 4 conventional deep oil &gas wells drilled in that basin; ■ Lack of any evidence of oil shows encountered in basin during nearly a century of coal mining and exploration, or in the extensive coal seams outcrops exposed in the basin including immediately adjacent to the project area; ■ This conclusion is further supported by a separate evaluation by ADNR,that concluded that there was low potential for intercepting oil and led to the issuance of a gas-only exploration license. UCM understands that should they penetrate a formation capable of flowing oil to the ground surface during the drilling of this well that operations must be immediately suspended and ADEC must be immediately notified. UCM also understands that this exemption does not relieve UCM of the responsibility for securing other federal state or local approvals or permits, and that we are still required to comply with all other applicable laws. • REFERENCES CITED Barnes,F.F.,Wahrhaftig,C.A.,Cobb,E.H.,Freedman,Jacob,Hickcox,C.A.,and Hopkins,D.M., 1951,Coal investigations in south-central Alaska:U.S.Geological Survey Bulletin 963-E,p. 137-209, 10 sheets. http://www.dggs.alaska.gov/pubs/id/3544 Csejtey,B.,Jr.,Mullen,M.W.,Cox,D.P.,and Stricker,G.D., 1992,Geology and geochronology of the Healy quadrangle,south-central Alaska:U.S.Geological Survey Miscellaneous Investigation Map 1-1961. http://www.dggs.dnr.state.ak.us/webpubs/usgs/iltext/i-1961.PDF state.ak.us/webpubs/usgs/i/text/i-1961.PDF Flores R.M, Stricker, G.D., and Kinney, S.A., 2004, Alaska Coal Geology, Resources, and Coalbed Methane Potential:United States Geological Survey Digital Data Series 77,Version 1.0, 125 p. http:/,www.dags.alaska.gov/pubs/id/24040 Final Best Interest Finding:Healy Basin Gas Only Exploration License :by Division of Oil&Gas-Alaska Department of Natural Resources,2010 http://dog.dnr.alaska.gov/Programs/Documents%5Cllealy%5CFinal Finding of Director Gas Only License Heal v.pdf Miller,D.J.,T.G.Payne and G.Gryc, 1959 Geology of possible petroleum provinces in Alaska.U.S.Geological Survey. Survey bulleting 1094,Washington,U.S.Government printing office. http://pubs.usgs.gov/bu l/1094/report.pdf Ridgway, P.W., Thorns, E.E., Layer, P.W., Lesh, M.E., White, J.M. and Smith, S.V., Neogene transpressional foreland basin development on the north side of the central Alaska Range, Usibelli Group and Nenana Gravel, Tanana basin,Geological Society of America Special Papers,2007,431,p.507-547 http://pubs.er.usgs.gov/publication/70035203 Stach, E., Mackowski, M.T., Teichmuller, M., et.al., 1975, Stach's textbook of coal petrology: Berlin, Gebruder Borntraeger,428 p. Stanley,R.G. 1995 National oil and gas assessment;central Alaska province. 1995 geologic report.USGS Central Energy Team. Stanley,R.G.,McLean,Hugh,and Pawlewicz,M.J., 1990,Petroleum source potential and thermal maturity of the Tertiary Usibelli Group of Suntrana,central Alaska,in Dover,J.H.,and Galloway,J.P.,eds.,Geologic studies in Alaska by the U.S.Geo-logical Survey, 1989:U.S.Geological Survey Bulletin 1946,p.65-76. http://pubs.usgs.gov/imap/i2543/i2543 pamphlet.pdf Troutman, S.M.,and Stanley,R.G.,2002,Map and digital database of sedimentary basins and indications of petroleum in the CentralAlaska Province:U.S.Geological Survey Open—File Report 02-438,scale 1:2,500,000. http://geopubs.wr.usgs.gov/open-file/oIO2-483/ Usibelli Coal Mine,Inc.,Company Records Wahrhaftig,Clyde, 1970,Geologic map of the Healy D-4 Quadrangle,Alaska:U.S.Geological Survey Geologic Quadrangle Map 806, 1 sheet,scale 1:63,360 http:Pwww.dggs.alaska.gov/pubs/id/12899 • • OVERSIZED DOCUMENT INSERT This file contains one or more oversized documents. These materials may be found in the original hard file or check the parent folder to view it in digital format. • • ry rL_ r ' I r'. WELL NAME: -2-/4-7 Z— I 'CE f'€ - S, er t Service _Expicrary Stratigre rhic Test R'on-Corwenn.tionEF I 7476.17:y rer49 Check Cox for Appropriate Let:er/Paragraphs to be included in 1 ra,nsmitta,i LetEer CI I'M OPTIONS TEXT FOR APPROVAL LET1E! MULTI LATERAL The permit is for a new wellbore segment of existing well Permit (If last two digits No. , API No. 50- - - - . in API number are Production should continue to be reported as a function of the original between 60-69) API number stated above. 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 Pilot Hole ( PH) and API number (50- - - - ) from records, data and logs acquired for well(name on permit). The permit is approved subject to full compliance with 20 AAC 25.055. Approval to produce / inject is contingent upon issuance of a Spacing Exception conservation order approving a spacing exception. (Company Name) Operator assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the AOGCC must be in no greater Dry Ditch Sample than 30' sample intervals from below the permafrost or from where samples are first caught and 10'sample intervals through target zones. Please note the following special condition of this permit: Production or production testing of coal bed methane is not allowed for v Non-Conventional (name of well) until after (Company Name) has designed and Well implemented a water well testing program to provide baseline data on water quality and quantity. (Company Name) must contact the AOGCC to obtain advance approval of such water well testing program. Regulation 20 MC 25.071(a) authorizes the AOGCC to specify types of well logs to be run. In addition to the well logging program proposed by (Company Name) in the attached application,the following well logs are Well Lo in also required for this well: gg g Requirements Per Statute AS 31.05.030(d)(2)(B) and Regulation 20 MC 25.071, composite curves for well logs run must be submitted to the AOGCC within 90 days after completion, suspension or abandonment of this well. 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CO O) O - N M •P to (O I.- 00 O) =', E ,- N M d• M CO N co M ," T- N N N N N N N N N N M M M M M M M M M M I- U v v v C ' C C O C N ... 2 R V O N O pCO pN O_ p To Lii RI CL v .a' co ....7. -Jo co o f N y a) a) U o J ....1 ii C Q C Q (n O G CI 0 uj O 'Eo a w c aU 0 au) d Q Q W Q C7 Q • Well History File APPENDIX Inforrrration of detailed nature that is not particularly germane to the Well Permitting Process but is part of the history file. To improve the readability of the Well History file and to simplrfy finding information, information of this nature is accumulated at the end of the file under APPENDIX. No special effort has been made to chronologically • organize this category of information. GEOLOGIC WELLSITE REPORT Usibelli Coal Mine, Inc. Usibelli HC-1 Sec 13-T12S-R6W Healy, Alaska. Todd Nakata and Eli Denbesten Acme Geologic Consulting 108 Berry St Little Rock, AR 72205 1 WELL SUMMARY* The HC-1 was drilled primarily to test the coal seams of the Suntrana formation in the Nenana field. The HC- 1 well spudded on the 12th of September, 2014, with an 8 3/4" paddle bit. AcmeGeo personnel mobilized on the 10th and were on location and rigged up the following afternoon. The EDR provided by Total Safety did not have the capabilities to communicate with ACME's mud logging equipment until the following morning. Until the unit was fixed drilling depth was entered in manually. After 383' ACME's equipment was able to interface with Total Safety and the drilling depth was recorded in real time. The Suntrana formation consists of unconsolidated sandstone that fines upwards. It is capped by an argillaceous claystone and coal. The unconsolidated sandstone on top of the coal seam #6 caused circulation problems and thus drilling was slowed. After each of the consecutive coal seams were drilled the underlying claystone caused the drilling to slow dramatically. Also the unconsolidated nature of the formation caused excessive wear on the paddle bit which decreased its size by 2", photo 1. Multiple cutters were broken off as well as the metal blades reduced. Photo 1. 8 3/4" paddle bit reduced to ~7" with a tricone bit behind for size comparison. Due to the lack of gas, the first two seams, #6 and #5, in the drilling program were not cored and therefore just analyzed through cutting and gas samples. Coal seam #4 was contacted at 8:10 on the 14th and the drilling BHA was tripped out and was changed to a coring one. Fifteen feet of seam #4 was cored with a recovery of 13.58', Acme 2 took its first sample at 732.25'. To recover the core from the core tube, photo 2, a diesel pump was used to pressure one end with water, photo 3, and a wooden trough was built to receive the extracted core, photo 4. Photo 2. Core tube with core extracting assembly attached. Photo 3. Diesel water pump used for core extraction with water source nearby. 3 Photo 4. Extracted core in wooden receiving trough. After a trip in with a drilling BHA it was decided to drill through seam #3 because of the lack of gas in seam #4. Swelling clays and benches continue to slow the drilling to seam #2. Coring of seam #2 began at 985' on the 15th at 17:00. The coring was completed within an hour and was on surface by 20:00. A complete core barrel of 15' was recovered. Drilling to coal seam #1 was completed the following day and drilling assembly was again replaced for the coring tools. Three core runs for seam #1 were performed. The first run yielded 5 desorption samples, the second, due to a pack off core barrel, only 4 were collected and the final run four more were taken. Drilling was resumed from 1216' to make a rat hole for the logging tools. TD of 1265' was reached at 21:35 on the 17th. Logging tools were then rigged up and tripped in to log the hole. Coal seam #1 could not be logged because of a bench at ~1100' prevented the logging tools to reach bottom. Hazards while driving from location to the hotel were encountered on a daily basis. Acme's rented vehicle was used to haul their equipment to and from Anchorage and the hotel. Unfortunately on the morning of the 16th a moose was struck and killed by an Acme individual, photo 5 and 6. 4 Photo 5. Road Hazards persisted on the drive to and from location. 5 Photo 6. Damage to vehicle after Acme struck a moose. 6 GEOLOGICAL SUMMARY* The formation at surface on the HC-1 well is Quaternary gravel. The underlying formation is the Lignite Creek, both of which were cased off and were not sampled on this well by Acme. The first and only formation encountered while drilling was the Suntrana Formation which consists of a repeating sequence of six coarse unconsolidated sandstones fining up to an overlaying claystone with a 10 to 60 foot sub bituminous to lignite coal cap. The sandstone layers are coarse unconsolidated, poorly sorted, light brown to gray at bottom that would transition to a moderately sorted, light gray to translucent sand that would contact the over lying claystone. The claystone layer is light gray, very fine grained, argillaceous with periodic coal rip ups. The upper sequence of the clay layer usually is interbed with the over lying coal, photo 7. Photo 7. Claystone and the overlying coal seam #4 The six coal layers encountered consisted of a black to dark gray, sub bituminous to lignite, rarely cleated and poker chipped. Often the lower portions of the coal were silty and of poor grade. Seams #3 through #1 could be observed on surface near location, photo 8. Seams #4, #2 and #1 were cored and desorbed for gas content. Both in seams 4 and 2 no visual degassing could be observed. The resulting desorption results of essentially zero gas evolved on both samples agree with this observation. On seam #1 gas was observed bubbling from the coal and desorption was observed in the testing of the 13 samples taken from bottom seam. Desorption results of seam #1 showed a formation low in gas volume. Three core runs were performed and of the three the second core showed the highest reading of gas content. 7 Photo 8. Seams #3 to #1 outcropping a quarter mile from location. Due to the close proximity of the out crop the gas content observed on this location was very low. Both the gas detection and desorption recorded levels below 500 units of gas and no more than 30 ml of gas evolved at one time. With the absence of gas in seams #6 through #2 and low volume observed in seam #1 the Suntrana formation in this location it is suggested that this area requires further study for gas content. *Depths in this report are measured from KB depth unless otherwise posted. 8 Desorption Data Sample Number Canister ID number Start Depth End Depth Length Weight Calculated Density Measured Gas cc STP Lost gas polynomial fit cc STP Projected residual gas scft/ton Gas content scft UHC1-1 3-27 732.3 733.3 1.0 1628.0 1.5 1.8 87.5 0.0 1.8 UHC1-2 3-86 996.2 997.2 1.0 1231.0 1.2 4.6 43.4 0.1 1.3 UHC1-3 3-84 1174.0 1175.0 1.0 1694.0 1.6 141.5 35.7 1.2 4.6 UHC1-4 3-82 1177.0 1178.0 1.0 1732.0 1.6 36.9 10.4 0.4 1.3 UHC1-5 3-72 1179.0 1180.0 1.0 1787.0 1.7 267.4 170.5 5.3 13.2 UHC1-6 3-42 1183.0 1184.0 1.0 1529.0 1.4 265.6 163.8 5.9 14.9 UHC1-7 3-21 1184.6 1185.6 1.0 1549.0 1.5 265.5 149.7 5.8 14.4 UHC1-8 3-17 1191.0 1192.0 1.0 1572.0 1.5 503.3 439.9 8.6 27.8 UHC1-9 3-37 1193.0 1194.0 1.0 1213.0 1.1 325.6 381.1 6.2 24.9 UHC1-10 3-45 1195.5 1196.5 1.0 1585.0 1.5 441.5 393.2 9.4 26.2 UHC1-11 3-58 1197.0 1198.0 1.0 1445.0 1.4 355.9 229.3 8.1 21.1 UHC1-12 3-323 1202.9 1203.9 1.0 1785.0 1.7 58.5 91.8 4.2 6.9 UHC1-13 3-89 1207.0 1208.0 1.0 1663.0 1.6 197.7 67.6 5.1 10.2 UHC1-14 3-64 1209.0 1210.0 1.0 1945.0 1.8 102.3 54.6 5.1 7.6 UHC1-15 3-60 1211.2 1212.2 1.0 1694.0 1.6 292.3 133.3 5.0 13.1 Samples taken in the HC-1 well had generally low gas contents ranging from essentially zero in the upper seams to a high of 27.8 scft in seam 1. The results on the first two samples is very questionable as the projections were made with only a very few positive readings, which results in very poor reliability. The canisters from seam 1 have much better data quality, though still low gas. There was also no particular correlation between calculated density and gas content Density vs. gas content 9 All lost gas calculations used a polynomial best fit curve to determine gas volume lost before the sample was sealed in the desorption canister. Projected residual gas curves were also calculated. An example from canister UHC1-08 is shown below. Lost gas projection from UHC1-08 Residual gas projection from UHC1-08 10 WELL DATA COMPANY NAME:Usibelli Coal Mine, Inc. WELL NAME:Usibelli HC-1 COMPANY REPRESENTATIVE:Mitch Usibelli SURFACE LOCATION Sec13-T12S-R6W BOTTOM-HOLE LOCATION:n/a LAT-LONG:n/a API NUMBER:n/a FIELD:Nenana ELEVATION:2028’ GL, 2041.5’ KB SPUD DATE:9/11/2014 DATE TD REACHED:9/17/2014 CONTRACTOR:All American Oil And Associates TOOLPUSHER:Steve DRILLERS:Ed Rastajue, Russel PUMPS:n/a HOLE SIZE:12.25" surface -150' 8.75" 150'-1265' CASING:9 5/8” csg 36PPF J-55 set at 150' MUD COMPANY:MI Swaco ENGINEER:John Clark PROGRAM:Water and LSND WELLSITE GEOLOGY:Acme Geologic Consulting GEOLOGISTS:Todd Nakata, Eli Denbesten LOGGING COMPANY:Century logging TOTAL DEPTH:1265' BOTTOM HOLE FORMATION:Santrana, Healy SAMPLE PROGRAM:5' samples 124' - 1265' 11 DAILY CHRONOLOGY Date Midnight Depth (23:59) 24 hr Footage Activity 9/4/2014 0 0 Acme flew to Anchorage on the request of AES. Left Denver at 20:30 arrived at 12:20 the following morning. 9/5/2014 0 0 Went to AES office for a meeting with Bill Ellis and picked up supplies for upoming well. 9/6/2014 0 0 Standy by. 9/7/2014 0 0 Standy by. 9/8/2014 0 0 Staged and put together equipment at AES office. 9/9/2014 0 0 Staged and put together equipment at AES office. 9/10/2014 0 0 Left for Usibelli mine in Healy, AK. Drove to location and rigged up equipment. 9/11/2014 0 0 Finished rigging up at 12:00. Waiting on drill rig to spud. Totco EDR does not have a depth tracker therefore ACME will keep track of the footage manually. 9/12/2014 447 447 Drilling began at 05:00. EDR was fixed and was used to track ROP and depth starting from 383'. Circulation problems and lack of returns slowed drilling. Coal Seam #6 came in at ~200', 111' early to prog. Hit Coal seam 5 at 306'. After coal seam 5, well sorted lt gy sandstone samples were drilled from 318' until reaching a 10' coal stringer at 580' TVD. 9/13/2014 722 275 Methane was detected by the gas detector at 600'. ROP dropped to .5 ft/hr and therefore TOH 665' at 11:00 for a bit change. The outer gauge of the drilling bit was warn away significantly and the cutters were chipped and or missing. Due to the gauge of the bit, the hole needed to be reamed from ~263' to bottom. Drilling resumed at 20:15 with a tri cone bit. Reached the top of coal seam 4 which was 3' thick, through a fining upwards and then fining downwards sequence and into the lower portion of coal seam 4 at 722' at 00:00. Gas levels started to pick up reaching a maximum of 10.22 units when we entered the top of the lower portion of coal seam 4. TOH at 01:38 for coring tools. 9/14/2014 800 78 Coring #4 started at 08:10. TD core 4 736' at 9:45. TOH at 10:10. Core on surface at 11:45. Sample 3-27 taken at 732.25' to 733.25'. Recovery was 13.58', 19" short of a 15' 2" barrel. Sample 3-27 went to vacuum at <2hr after being canned. Rig had to ream to bottom due to the lack of weight on drill string to trip back in. Bit was getting hung up on benches and swelling clay stones. Back to drilling at 17:25 and drilled to 800'. Hit a 3' reference coal stringer at 778'. From 781 on drilling slowed down at times to 2 feet per hour. 9/15/2014 1000 200 After core 4 it was decided to drill through coal seam 3 if no gas was detected as we approached the seam. The decision was made to not core seam 3 and continue on to coal seam 2. Coal seam #3 encountered at 870'. No gas seen through the gas detector nor visibly seen under a microscope. It was determined that drilling continue through to Seam #2. Seam #2 was encountered at ~980'. 10 units were seen on the detector but no visible degassing seen in the cutting samples. Core point 2 reached seam #2 985'. TOH for coring tools at 12:40. TIH at 14:45 with core tools. Coring seam #2 began at 17:00. TOH 1000' with core at 18:04. Sample #2 taken at 996.23' - 997.23'. Volume of gas dropped of dramtically, reading zero gas by the 4th hour. TIH at 21:02 with a tri cone bit and drilling to seam #1 began. 9/16/2014 1201 201 Core Seam #1 was drilled at 1152'. TOH 1173' at 08:30 for core tools. TIH at 11:10. Coring began at 13:00. Coring was finished at 14:35 and a depth of 1189'. 5 canisters were disorbed from this top core giving off average readings of 8 mL and are still giving off consistent gas at midnight. The second core run began at 21:10 and completed 1201' at 22:55 due to the core barrel being packed off. TIH with coring tools at 17:47 and were back on bottom coring by 21:10. Coring lasted until 22:34 reached 1216' and were still TOH at midnight. Gas levels while coring were around 40 units. 9/17/2014 1265 64 Core 3 from Core seam #1 was on surface at 08:40. Four samples were taken with very little gas. TIH and back to drilling rat hole for Century logging, E-Logs. Pump problems caused slow trip in time. Down time gas 392 units. Back on bottom at 14:58. Drill to TD 1265' and then TOH at 23:55. 9/18/2014 1265 0 Continue to TOH. Out of hole at 1:20. Lay down tools and pick up logging tools. Acme rigged down and left location. 12 BIT RECORD #MAKE TYPE SIZE DEPTH IN DEPTH OUT FOOTAGE 1 n/a Paddle 8 3/4"125 665 540.0 2 n/a Tricone 8 3/4"665 722 57 3 n/a Core Bit 8 3/4"722 736 14 4 n/a Tricone 8 3/4"736 985 249 5 n/a Core Bit 8 3/4"985 1000 15 6 n/a Tricone 8 3/4"1000 1173 173 7 n/a Core Bit 8 3/4"1173 1216 43 8 n/a Tricone 8 3/4"1216 1265 49 MUD RECORD DATE DEPTH WT VIS Filtrate SOL%pH Chlorides 9/12/2014 125 9.0 36 9/13/2014 621 9.4 37 9/14/2014 739 9.4 39 9/15/2014 945 9.7 39 9/16/2014 1201 10.1 44 13 FORMATION TOPS Formation.Subsea (ft) Actual Depth TVD KB Depth Quaternary Gravel 2041.5 0 Lignite Creek Fm 1991.5 50 Suntrana Fm - Seam 6 1730.5 200 Interburden 1706.5 220 Seam 5 1594.5 305 Interburden 1580.5 318 Seam 4 1232.5 700 Interburden 1203.5 736 Seam 3 1046.5 870 Interburden 1029.5 880 Seam 2 934.5 980 Interburden 903.5 1015 Seam 1 793.5 1152 TD 673.5 1265 Sample Top TVD KB Depth 0 50 311 335 447 1138 1248 1368 461 809 838 995 1012 1107 14 DRILL CURVE DEPTH VS DAYS 15 Individual Sample Descriptions By Mike Belowich 138.5-176.5 Sandstone light brown to gray, poorly sorted, rounded to sub angular, no show fluorescence or cut 176.5-207.5 Sandstone light brown to gray, poorly sorted, rounded to sub angular, trace Coal rip ups, no show fluorescence or cut 213.5-233.5 Coal sub bitumen 233.5-288.5 Sandstone light gray to light brown, sub angular to sub rounded, unconsolidated to friable, argillaceous, grading to claystone, no show fluorescence or cut, rare coal 288.5-318.5 Sandstone light gray to cream, sub angular to sub rounded, unconsolidated to friable, argillaceous, grading to claystone, coal rip ups in part no show fluorescence or cut 318.5 Coal stringer 329.5 Coal stinger 329.5-364.5 Sandstone light gray, sub angular to sub rounded, unconsolidated to friable, argillaceous, grading to claystone, rare Coal black, cleated, no show fluorescence or cut 364.5-396.5 Sandstone light gray, sub angular, poorly sorted, unconsolidated to friable, argillaceous in part, rare Coal black, no show fluorescence or cut 396.5-428.5 Sandstone light gray, very fine to fine grained, sub angular, moderately sorted, unconsolidated, rare coal, no show fluorescence or cut 428.5-471.5 Sandstone light gray, very fine to fine grained, sub angular, moderately sorted, unconsolidated, no show fluorescence or cut, rare coal 471.5-483.5 Sandstone light gray, very fine to fine grained, sub angular, moderately sorted unconsolidated, occasional quartz, angular to sub rounded, occasional chert, sub angular to sub rounded, no show fluorescence or cut, rare potassium feldspar, rare jasper, rare coal 483.5-593.5 Sandstone very fine to fine grained, sub angular to angular, moderately sorted, unconsolidated, occasional quartz, occasional coal rip ups, occasional chert, no show fluorescence or cut 593.5-603.5 Coal stringer 603.5-676.5 Sandstone very fine to fine grained, sub angular to angular, moderately sorted, unconsolidated, occasional quartz, occasional coal rip ups, occasional chert, no show fluorescence or cut 676.5-713.5 Sandstone very fine to fine grained, sub angular to angular, moderately sorted, unconsolidated, occasional quartz, occasional coal rip ups, occasional chert, no show fluorescence or cut 713.5-716.5 Top of Coal Seam 4 16 716.5-718.5 Claystone, light gray, very fine grained 718.5-722.5 Siltstone light to medium gray, very fine grained, sub angular to angular, well sorted, occasional quartz, occasional coal rip ups 722.5-725.5 Sandstone very fine to fine grained, sub angular to angular, moderately sorted, occasional quartz, occasional coal rip ups, no show fluorescence or cut 725.5-727.5 Siltstone light to medium gray, very fine grained, sub angular to angular, well sorted, occasional quartz, occasional coal rip ups 727.5-722.5 Claystone light gray, very fine grained 722.5-734.5 Carbonaceous Shale, very fine grained, dark gray 734.5-735.5 Coal Seam 4 735.5-751.5 Coal gray to black, silty, poker chip in part, heavy, grading to shale, occasional Carbonaceous shale, fissle in part 751.5-763.5 Carbonaceous shale medium gray, very fine grained, well sorted, interbedded bone coal 763.5-776.5 Claystone medium to dark gray, very fine grained, well sorted, interbedded coal 776.5-779.5 Siltstone medium gray, very fine grained, well sorted, occasional coal rip ups 779.5-791.5 Sandstone light to medium gray, fine to m grained, well sorted, occasional coal rip ups, grading to pebble sandstone 791.5-794.5 Coal Stringer 794.5-813.5 Sandstone light to medium gray, fine grained, sub angular to angular, siltstone light to medium gray, very fine grained, sub angular to sub rounded, occasional coal rip ups 813.5-823.5 Siltstone light to medium gray, very fine grained, sub angular to angular, well sorted, occasional quartz, occasional coal rip ups 823.5-845 Claystone light to medium gray, very fine grained, well sorted, occasional coal rip ups 845-878.5 Siltstone gray to light gray, argillaceous, soft, occasional Claystone light to medium gray, very fine grained 878.5-883.5 Sandstone gray to translucent, salt and pepper, medium to fine grained, unconsolidated, occasional Siltstone gray, argillaceous, rare Coal black to dark brown 883.5-894.5 Coal black, cleated, sucrosic, no visible degas, rare Sandstone translucent, medium grained 894.5-902.5 Claystone light to medium gray, very fine grained, well sorted, occasional coal rip ups 17 902.5-928.5 Siltstone gray to medium gray, light gray in part, argillaceous, soft, occasional claystone light gray, soft 928.5-993.5 Sandstone translucent to gray, salt and pepper, medium to fine grained, sub angular, unconsolidated, occasional Siltstone gray to medium gray, argillaceous, rare Claystone gray, soft 993.5-1028.5 Coal black, sub bitumen, cleating in part, cont fracture in part, moderately heavy to light, rare ash parting, rare shale dark gray, carbonaceous, grading to coal 1028.5-1038.5 Claystone light to medium gray, very fine grained, occasional coal rip ups 1038.5-1098.5 Sandstone light to medium gray, fine grained, sub angular to angular, occasional quartz, occasional coal rip ups, sandstone fining upwards across entire section 1098.5-1165.5 Sandstone light gray to medium gray to translucent, salt and pepper, medium to fine grained, sub angular to angular, poorly sorted, occasional quartz, occasional coal rip ups, occasional chert black 1165.5-1229.5 Sub bituminous coal black, sub bitumen, fusionite seams throughout, 12 deg dip. 3 cores taken. one from 1229.5-1231.5 sub bituminous bone coal black, interbedded with claystone black, very fine grained 1231.5-1235.5 sub bituminous coal 1235.5-1238.5 claystone light gray, very fine grained, occasional coal rip ups, occasional chert black 1238.5-1242.5 Sandstone medium gray, fine grained, occasional coal rip ups, occasional chert black 1242.5-1246.5 Siltstone medium gray, very fine grained, interbedded with Sandstone medium gray, fine grained, occasional coal rip ups, occasional chert black 1246.5-1254.5 Sub bituminous coal stringer black 1254.5-1268.5 Sandstone medium to dark gray, fine grained, sub angular to angular, well sorted, occasional quartz, abundant coal rip ups, occasional chert black 1268.5-1278.5 Sandstone medium gray, fine grained, sub angular to angular, well sorted, abundant coal rip ups, occasional chert black 18 Desorption samples UHC1-1 Desorption sample 3-27, 732.25’-733.25' UHC1-2 Desorption sample 3-86, 996.23'-997.23' 19 UHC1-3 Desorption sample 3-84, 1174’-1175' UHC1-4 Desorption sample 3-82, 1177’-1178' 20 UHC1-5 Desorption sample 3-72, 1179'-1180' UHC1-6 Desorption sample 3-42, 1183’-1184' 21 UHC1-7 Desorption sample 3-21, 1184.6’-1185.6' UHC1-8 Desorption sample 3-17, 1191’-1192' 22 UHC1-9 Desorption sample 3-37, 1193’-1194' UHC1-10 Desorption sample 3-45, 1195.5’-1196.5' 23 UHC1-11 Desorption sample 3-58, 1197’-1198' UHC1-12 Desorption sample 3-323, 1202.9’-1203.9' 24 UHC1-13 Desorption sample 3-89, 1207’-1208' UHC1-14 Desorption sample 3-64, 1209’-1210' 25 UHC1-15 Desorption sample 3-60, 1211.2’-1212.2' 26