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Home My WebLink AboutCO 570 ACONSERVATION ORDER 570A Prudhoe Bay Field Prudhoe Bay Unit Raven Oil Pool 1. July 27, 2023 Hilcorp Application for Expansion of Raven Oil Pool 2. August 10, 2023 Notice of Public Hearing and Affidavit (confidential items held in secure storage) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp North Slope, LLC to amend Conservation Order No. 570 to expand the areal extent of the Raven Oil Pool within the Prudhoe Bay Field, Prudhoe Bay Unit ) ) ) ) ) ) ) ) Docket Number: CO-23-012 Conservation Order 570A Prudhoe Bay Field Prudhoe Bay Unit Raven Oil Pool January 14, 2025 IT APPEARING THAT: 1. By application dated July 27, 2023, Hilcorp North Slope, LLC (Hilcorp), as operator of the Prudhoe Bay Unit (PBU) and on behalf of the Working Interest Owners (WIOs), requested an order from the Alaska Oil and Gas Conservation Commission (AOGCC) to expand the affected area of Conservation Order No. 570 (CO 570), which established pool rules for the PBU Raven Oil Pool (ROP). The AOGCC, on its own motion, also proposes to rescind Rule 14 of CO 570 because 20 AAC 25.556(d) now allows the AOGCC to administratively amend an order it has issued, thus making Rule 14 of CO 570 extraneous. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for September 28, 2023, at 10:00 AM. The notice of that hearing was published on the State of Alaska’s Online Public Notice website, on the AOGCC’s website on August 10, 2023, and in the Anchorage Daily News on August 13, 2023. 3. The AOGCC received no comments or requests to hold the proposed hearing and the application provided sufficient information to make a decision. The tentatively scheduled hearing was vacated. 4. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. FINDINGS: 1. Order History CO 570, which established the ROP and pool rules for its development, was issued August 9, 2006. 2. Operatorship History of ROP The ROP was initially established by BP Exploration Alaska (BPXA), Hilcorp Energy Company purchased BPXA on July 1, 2020, and renamed it to Hilcorp North Slope, LLC. 3. Owners and Landowners The affected landowner is the State of Alaska. All lands within the development area are leased from the State of Alaska, lie within the PBU and have the same working interest Conservation Order 570A January 14, 2025 Page 2 of 9 ownership: 36.40 percent ExxonMobil Alaska Production Inc., 36.08 percent ConocoPhillips Alaska, Inc., 26.36 percent Hilcorp North Slope, and 1.16 percent Chevron USA Inc. 4. Expansion of the ROP Hilcorp proposes to greatly expand the ROP to the east, north, and west, staying within the boundaries of the PBU. Hilcorp provided a map (Figure 1, below) showing the current and proposed boundaries of the ROP, along with a table of township/range values of the proposed expanded affected area. Hilcorp wishes to expand the ROP to pursue future development of the Sag River and Ivishak Formations from the Niakuk Drillsite. To support the geologic basis for the pool expansion, Hilcorp provided subsurface structure and net pay maps of the Sag River and Ivishak formations, a seismic cross-section, and a well log cross-section. The subsurface structure maps contained proposed development well locations. Hilcorp requested the geologic maps and cross-sections be held confidential. The Sag River Formation is Hilcorp’s primary target. Development of this resource is expected to be accomplished via a combination of producing and injection wells. Also of interest is the Ivishak Formation. Hilcorp also believes expansion of the ROP affected area and additional development drilling will allow further evaluation of sand quality and hydrocarbon presence of the Kuparuk River Formation of the overlying Niakuk Oil Pool. CONCLUSIONS: 1. AOGCC accepts Hilcorp’s request to keep the net pay and structure maps and seismic and well log cross-sections confidential, because all are based on interpreted data. 2. Information provided by Hilcorp demonstrates that the ROP extends beyond its current affected area, and thus expanding the affected area of the ROP is appropriate. 3. Having an administrative action rule in the ROP pool rules is no longer necessary due to AOGCC regulations now allowing administrative action to be taken on any order issued by the AOGCC. NOW, THEREFORE, IT IS ORDERED: 1. This conservation order supersedes CO 570, dated August 9, 2006, and all associated administrative approvals to CO 570. The record, findings, and conclusions of CO 570 and its associated administrative approvals are incorporated by reference into the record for this order. 2. The development and operation of the ROP within the affected area is subject to the following rules and the statewide requirements under 20 AAC 25 (to the extent not superseded by these rules). Conservation Order 570A January 14, 2025 Page 3 of 9 Affected Area (Revised this order): Umiat Meridian Township/Range Sections 12N-15E N/2, SE/4, NE/4SW/4 Section 23 Section 24 N/2, SE/4, E/2SW/4 Section 25 N/2 Section 26 N/2NE/4 Section 36 12N-16E Section 19 S/2, NW/4, S/2NE/4 Section 20 S/2, S/2NW/4, SW/4NE/4 Section 21 S/2 Section 22 N/2 Section 28 N/2, N/2SW/4, SW/4SW/4 Section 29 Section 30 NW/4NW/4 Section 31 Figure 1. Existing Extent and Proposed Expansion of ROP Affected Area (Source: Hilcorp North Slope, LLC) Rule 1: Field and Pool Name (Restated from CO 570) The field is the Prudhoe Bay Field. Hydrocarbons underlying the affected area and within the herein defined interval of the Ivishak, Shublik and Sag River Formations constitute the ROP. Conservation Order 570A January 14, 2025 Page 4 of 9 Rule 2: Pool Definition (Restated from CO 570) The ROP is defined as the accumulation of hydrocarbons common to and correlating with the interval between log-measured depths 10,628 feet and 11,165 feet within Well NK-05. Rule 3: Well Spacing (Revised by CO 570.010) There are no restrictions to well spacing within the affected area except that no pay may be opened in a well which is closer than 500 feet of an external property line where the owners and landowners are not the same on both sides of the line. Rule 4: Casing and Cementing Practices (Restated from CO 570) In addition to the requirements of 20 AAC 25.030, the conductor casing must be set at least 75’ TVD below the surface. In addition to the requirements of 20 AAC 25.030, the surface casing must be set at least 500’ TVD below the base of the permafrost. Rule 5: Automatic Shut-in Equipment (Rescinded by Other Order 66 and replaced by 20 AAC 25.265) Rule 6: Common Production Facilities and Surface Commingling (Revised by CO 570.010) a. Production from the Raven Oil Pool may be commingled on the surface with production from other pools for processing at the LPC prior to custody transfer. b. Production from each well will be determined by the following well test allocation methodology. Allocation data and well test data will be supplied to the AOGCC via the Annual Reservoir Surveillance Report. i. Conduct well tests to determine production rates for each well. ii. Calculate each well's theoretical monthly production (TMP) based on well test rate(s) and actual time on production. iii. Sum the TMP volume for all wells in all pools. iv. Determine an allocation factor as the ratio of the metered volume to the TMP for all wells in all pools (i.e., metered/TMP). v. Calculate each well's actual monthly production (AMP) volume as: AMP = TMP x Allocation Factor c. NGL's will be allocated to each pool based on actual gas production volumes and NGL process simulations. Process simulations will be updated at least once per year based on NGL samples and results reported to the AOGCC. d. Each producing well will be tested at least once each month. Wells that have been shut in and cannot meet the once-monthly test frequency must be tested within five days of startup. All available test separator capacity within the constraints imposed by operating conditions must be utilized for well testing. e. Optimum test duration and stabilization time will be determined on a well by well basis by the operator. Conservation Order 570A January 14, 2025 Page 5 of 9 Rule 7: Reservoir Pressure Monitoring (Revised by CO 570.010) a. An Annual Pressure Surveillance Plan shall be submitted to the AOGCC in conjunction with the Annual Raven Oil Pool Reservoir Surveillance Report by June 15th of each year. This plan will contain the number and approximate location of pressure surveys anticipated for the next calendar year and, unless AOGCC orders otherwise, the plan will be deemed approved 45 days after submission to AOGCC. b. Data from the surveys required in (a) of this rule shall be submitted with the Annual North Raven Oil Pool Reservoir Surveillance Report by June 15th of each year on Form 10-412. Data submitted shall include rate, pressure, time depths, temperature and any well condition necessary for the complete analysis of each survey. The datum for the pressure surveys is 9,850 true vertical feet subsea. Transient pressure surveys obtained by a shut-in build-up test, and injection well pressure fall-off test, a multirate test, or an interference test are acceptable. Calculation of bottom-hole pressures from surface data will be permitted for water injection wells. Other quantitative methods may be administratively approved by the AOGCC. c. Results and data from any special reservoir pressure monitoring techniques, tests, or surveys shall also be submitted as prescribed in (b) of this rule. Rule 8: Gas-Oil Ratio Exemption (Restated from CO 570) Wells producing under secondary depletion from the ROP are exempt from the gas-oil ratio limits of 20 AAC 25.240(a) so long as requirements of 20 AAC 25.240(b) are met. Rule 9: Pressure Maintenance Project (Restated from CO 570) Waterflood operations are approved for the ROP. Average reservoir pressure will be maintained and/or adjusted to maximize ultimate recovery. AOGCC approval is required prior to commencement of all other enhanced recovery operations. Rule 10: Annual Reservoir Surveillance Report (Revised by CO 570.002) An annual reservoir surveillance report must be filed on a schedule agreed upon by the AOGCC and the operator (by June 15 of each year). The report must include future development plans, reservoir depletion plans, and surveillance information for the reporting period agreed upon by the AOGCC and the operator (prior calendar year), including: a. Voidage balance by month of produced fluids and injected fluids and cumulative status for each producing interval. b. Reservoir pressure map at datum, summary and analysis of reservoir pressure surveys within the pool. c. Results and, where appropriate, analysis of production and injection log surveys, tracer surveys, observation well surveys, and any other special monitoring. d. Review of pool production allocation factors and issues over the prior year. e. Progress of enhanced recovery project implementation and reservoir management summary including results of reservoir simulation studies. Conservation Order 570A January 14, 2025 Page 6 of 9 f. By a date agreed on by the AOGCC and the operator (August 1 of each year), the Operator shall schedule and conduct a technical review meeting with the AOGCC to discuss the report contents and to review items that may require action within the coming year by the AOGCC. The AOGCC may conduct audits of technical data and analyses used in support of the surveillance conclusions and reservoir depletion plans. Rule 11: Waiver of "Application for Sundry Approval" Requirement for Workover Operations (ref. CO 556A). (Restated from CO 570) a. Except as provided in Rules d and e, submission of an Application for Sundry Approvals (Form 10-403) and supporting documentation for workover activities described in 20 AAC 25.280(a) is waived or modified for development wells as provided in the Attachment. b. Except as provided in Rules “d” and “e”, submission of an Application for Sundry Approvals (Form 10-403) and supporting documentation for workover activities described in 20 AAC 25.280(a) is waived or modified for service wells as provided in the Attachment c. The Attachment summarizing the sundry approval and reporting requirements applies to operations in the specific well types. d. The waivers provided under Rule “a” above, do not apply to wells that are required to be reported to the AOGCC under the provisions of an applicable Sustained Casing Pressure Rule in Conservation Order 492 or 503. e. The AOGCC reserves the right to require an Application for Sundry Approvals for a particular well or for a particular operation on any well. f. Nothing in this order precludes filing an Application for Sundry Approvals (Form 10- 403) in advance of any well work. g. The Attachment applies while Hilcorp North Slope is the operator of Prudhoe Bay Field. h. No change of operator will be effective until the current operator requests the AOGCC to amend this order to change the name of the operator and the AOGCC approves the required designation of operator form. Rule 12 Annular Pressures (Revised by CO 570.011) a. At the time of installation or replacement, the operator shall conduct and document a pressure test of tubulars and completion equipment in each production well that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each production well daily to check for sustained pressure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for AOGCC inspection. c. The operator shall notify the AOGCC within three working days after the operator identifies a well as having (1) sustained inner annulus pressure that exceeds 2500 psig for Conservation Order 570A January 14, 2025 Page 7 of 9 wells processed through the Lisburne Processing Center and 2100 psig for all other production wells, or (2) sustained outer annulus pressure that exceeds 1000 psig. d. The AOGCC may require the operator to submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action or increased surveillance for any production well having sustained pressure that exceeds a limit set out in paragraph (c) of this rule. The operator shall give the AOGCC notice consistent with the requirements of Industry Guidance Bulleting 10-01A of the testing schedule to allow the AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a production well that exceeds 45% of the burst pressure rating of the well’s production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well’s surface casing for outer annulus pressure, the operator shall notify the AOGCC within three working days and take corrective action. Unless well conditions require the operator to take emergency corrective action before AOGCC approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action. The operator shall give the AOGCC sufficient notice of the testing schedule to allow the AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under (d) or (e) of this rule, before a shut- in well is placed in service, any annulus pressure must be relieved to a sufficient degree (1) that the inner annulus pressure at operating temperature will be below 2000 psig, and (2) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to (c) but not (e) of this rule may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under (c) of this rule, unless the AOGCC prescribes a different limit. g. For purposes of this rule, 1. “inner annulus” means the space in a well between tubing and production casing; 2. “outer annulus” means the space in a well between production casing and surface casing; 3. “sustained pressure” means pressure that (A) is measurable at the casing head of an annulus, (B) is not caused solely by temperature fluctuations, and (C) is not pressure that has been applied intentionally. Rule 13 Use of Multiphase Flowmeters in Well Testing (Initial rule expired December 31, 2007, CO 570.006, CO 570.007, and CO 570.008 established new rules) Multiphase flow metering was further addressed by CO 570.006, 570.007, and CO 570.008. From CO 570.007: The FMC Technologies System multiphase flowmeter system (EMS MPM system) can be used for well testing and production allocation for the ROP, subject to the following conditions: Conservation Order 570A January 14, 2025 Page 8 of 9 1. The system must be operated within the parameters identified in the document titled “Supplemental-2 Data for the AOGCC – Report 3/24/09,” which was included in with BPXA’s April 27, 2009 application; 2. Changes to the parameters must be approved by the AOGCC. From CO 570.006 and CO 570.008: The Weatherford Generation 2.0 Multiphase Metering System can be used for production well testing and allocation for the ROP on wells with similar production characteristics to those of V- Pad and E-Pad where the Gen 2 was field tested. This approval is conditioned upon the following: 1. the Gen 2 shall not replace Lease Automatic Custody Transfer meters; 2. production allocation methods shall remain unchanged unless changed by order of the AOGCC; 3. factory acceptance tests, field maintenance, periodic calibration, and fluid sampling must be performed in accordance with Hilcorp North Slope application; 4. Hilcorp North Slope must notify the AOGCC before installing the Gen 2 at any BPXA site; 5. Hilcorp North Slope must include a detailed summary of all Gen 2 installations to date, the performance of each Gen 2, all operational issues relating to the Gen 2, and any additional Gen 2 related test results in the annual surveillance report. The AOGCC reserves the right to call a meeting on Gen 2 related issues if it determines one is warranted. 6. Hilcorp North Slope must submit to the AOGCC a detailed plan of a long-term quality assurance program by January 15, 2009; 7. if the Gen 2 does not perform to the AOGCC’s satisfaction, Hilcorp North Slope must correct the problems or redeploy the existing pad separators; 8. all notices, reports, and other submissions Hilcorp North Slope is required to make to the AOGCC under this order must, at the time of the submission to the AOGCC, be provided to all affected working interest and royalty owners and DOR. 9. upon proper application, or its own motion, and unless notice and public hearing is required, the AOGCC may administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. Rule 14 Administrative Action (Superseded by regulation 20 AAC 25.556 (d)) Conservation Order 570A January 14, 2025 Page 9 of 9 DONE at Anchorage, Alaska January 14, 2025. Jessie L. Chmielowski Gregory C. Wilson Commissioner Commissioner 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. Gregory C. Wilson Digitally signed by Gregory C. Wilson Date: 2025.01.14 13:45:20 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.01.14 14:45:19 -09'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Area Injection Order 31A and Conservation Order 570A (Hilcorp) Date:Tuesday, January 14, 2025 3:07:14 PM Attachments:aio31A.pdf co570A.pdf THE APPLICATION OF Hilcorp North Slope, LLC for the expansion of the area in which injection is authorized by Area Injection Order 31, in the Raven Oil Pool within the Prudhoe Bay Field, Prudhoe Bay Unit THE APPLICATION OF Hilcorp North Slope, LLC to amend Conservation Order No. 570 to expand the areal extent of the Raven Oil Pool within the Prudhoe Bay Field, Prudhoe Bay Unit Samantha Coldiron AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO-23-023 and CO-23-012 By application dated July 27, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Raven Oil Pool (ROP) in the Prudhoe Bay Unit. Conservation Order No. 570 defines the ROP and prescribes rules for its development. Area Injection Order No. 31 prescribes rules for the injection of fluids into the ROP for the purpose of enhanced oil recovery. Hilcorp proposes to amend these orders to expand the map extent of the ROP to include acreage that recent drilling appears to confirm should be part of the pool to allow the new acreage to be developed under the same rules as the existing ROP. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for September 28, 2023, at 10:00 a.m. The hearing, which may be changed to full virtual, if necessary, will be held in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 Conference ID: 261 336 973#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 28, 2023. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after August 29, 2023. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on September 12, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the September 28, 2023, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than September 21, 2023. Brett W. Huber, Sr. Chair, Commissioner Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2023.08.10 13:56:07 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Public Hearing Notice AIO-23-012 and CO-23-023 (expansion of ROP in PBU) Date:Thursday, August 10, 2023 3:15:20 PM Attachments:AIO-23-012 and CO-23-023 public hearing notice expansion of ROP in PBU.pdf Docket Numbers: AIO-23-012 and CO-23-023 By application dated July 27, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Raven Oil Pool (ROP) in the Prudhoe Bay Unit. Samantha Carlisle Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov Lisi Misa being first duly sworn on oath deposes and says that she is a representative of the An- chorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the afore- said place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on AFFIDAVIT OF PUBLICATION ______________________________________ Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES ______________________________________ 08/13/2023 and that such newspaper was regularly distrib- uted to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed________________________________ Subscribed and sworn to before me this 14th day of August 2023. Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0039942 Cost: $300.8 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO 23-012 and CO 23-023By application dated July 27, 2023, Hilcorp North Slope, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Raven Oil Pool (ROP) in the Prudhoe Bay Unit. Conservation Order No. 570 defines the ROP and prescribes rules for its development. Area Injection Order No. 31 prescribes rules for the injection of fluids into the ROP for the purpose of enhanced oil recovery. Hilcorp proposes to amend these orders to expand the map extent of the ROP to include acreage that recent drilling appears to confirm should be part of the pool to allow the new acreage to be developed under the same rules as the existing ROP. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for September 28, 2023, at 10:00 a.m. The hearing, which may be changed to full virtual, if necessary, will be held in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 Conference ID: 261 336 973#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on August 28, 2023. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after August 29, 2023. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on September 12, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the September 28, 2023, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than September 21, 2023. Brett W. Huber, Sr. Chair, Commissioner Pub: Aug. 13, 2023 STATE OF ALASKA THIRD JUDICIAL DISTRICT 2024-07-14 Document Ref: 79DHT-RHDXW-7GRAZ-NX7FW Page 45 of 57 1 North Slope, LLC 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8386 kyndall.carey@hilcorp.com July 27, 2023 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 RE:Application for Expansion of the Prudhoe Bay Raven Oil Pool Dear Chair Huber: Hilcorp North Slope, LLC (“Hilcorp North Slope”), as the operator of the Prudhoe Bay Unit, requestsAlaska Oil and Gas Conservation Commission approval to expand the Prudhoe Bay Raven Oil Pool under Conservation Order 570, and Area Injection Order 31. Hilcorp North Slope submits that the requested expansions will not promote waste, cause damage, or jeopardize correlative rights. These changes are proposed based on sound engineering and geoscience principles and will not result in fluid movement outside of the authorized injection zones. Enclosed in this application is supporting information. If you need additional information, please contact Ryan Phelps at ryan.phelps@hilcorp.com. Sincerely, Kyndall Carey Land Tech Hilcorp North Slope, LLC Digitally signed by Kyndall Carey (3936) DN: cn=Kyndall Carey (3936) Date: 2023.07.27 16:49:11 - 08'00' Kyndall Carey (3936) Application for Expansion of the Prudhoe Bay Raven Oil Pool Application for Expansion of the Prudhoe Bay Raven Oil Pool Outline 1. Introduction 2. Prudhoe Bay Raven Oil Pool CO and AIO History 3. Proposed Prudhoe Bay Raven Oil Pool Affected Area Expansion 4. Development Drilling Plans List of Figures 1. Prudhoe Bay Raven Pool Type Log 2. Location Map: Proposed Expansion of CO 570 3. Location Map: Proposed Expansion of AIO 31 4. Figure 4a, 4b, and 4c: a. Confidential: Sag River Depth Structure Map with proposed well locations b. Confidential: Sag River Net Pay Map with proposed well locations c. Confidential: Ivishak Depth Structure Map 5. Figure 5a and 5b: a. Confidential: Seismic Cross-Section W-E b. Confidential: Well Log Cross-Section W-E Confidentiality Request 1. Figure 4a is an interpreted depth structure map of the Sag River sand over the northeastern portion of the Prudhoe Bay unit. Hilcorp North Slope, LLC requests this be held confidential because it is interpreted data. 2. Figure 4b is an interpreted net pay map of the Sag River reservoir over the northeastern portion of the Prudhoe Bay unit. Hilcorp North Slope requests this be held confidential because it is interpreted data. 3. Figure 4c is an interpreted depth structure map of the Ivishak sand over the northeastern portion of the Prudhoe Bay unit. Hilcorp North Slope requests this be held confidential because it is interpreted data. 4. Figure 5a is an interpreted seismic cross-section of the Sag River and Ivishak intervals running across the proposed expansion area. Hilcorp North Slope requests this be held confidential because it is interpreted data. 5. Figure 5b is a well log cross-section of the Sag River and Ivishak sands, including petrophysical interpretation of log data. Hilcorp North Slope requests this be held confidential because it is interpreted data. Application for Expansion of the Prudhoe Bay Raven Oil Pool 1. Introduction Hilcorp North Slope, LLC ("Hilcorp North Slope"), as operator of the Prudhoe Bay Unit, requests the Alaska Oil and Gas Conservation Commission (the "Commission") approval to expand the Prudhoe Bay Raven Oil Pool under Conservation Order ("CO") 570, and Area Injection Order ("AIO") 31. 2. Prudhoe Bay Raven Oil Pool CO and AIO History CO 570, issued on August 9, 2006 and corrected on January 28, 2019, defines the pool rules for the Prudhoe Bay Raven Oil Pool. The Prudhoe Bay Raven Oil Pool includes the accumulation of hydrocarbons common to and correlating with the interval between the measured depths of 10,628 feet and 11,165 feet within Well NK-05 (Figure 1). The corrected CO incorporates various changes administratively made by the Commission between 2006-2019. Underground injection of certain fluids in the Raven Oil Pool are permitted, subject to the conditions, limitations and requirements established in AIO 31, dated August 9, 2006. AIO 31.001 was issued in September 2012 which modified Rule 3 Authorized Fluids for enhanced Recovery. Application for Expansion of the Prudhoe Bay Raven Oil Pool Figure 1: Prudhoe Bay Raven Oil Pool type log, NK-05. Application for Expansion of the Prudhoe Bay Raven Oil Pool 3. Proposed Prudhoe Bay Raven Oil Pool Affected Area Expansion Hilcorp North Slope proposes the area subject to the conservation order for the Prudhoe Bay Raven Oil Pool (CO 570), and corresponding area injection order (AIO 31) be expanded so that these orders apply to the following: Prudhoe Bay Raven Oil Pool Proposed Affected Area Township/Range Lease Number Legal Description T12N-R15E ADL 034625 Sec 23 (N/2, SE/4, NE/4SW/4), 24, 25 (N/2, SE/4, E/2SW/4), 26 (N/2) T12N-R15E ADL 034630 Sec 36 (N/2NE/4) T12N-R16E ADL 391381 Sec 19, 20 (S/2, NW/4, S/2NE/4), 29 (N/2, N/2SW/4, SW/4SW/4), 30 T12N-R16E ADL 034635 Sec 31 (NW/4NW/4) T12N-R16E ADL 390314 Sec 21 (S/2, S/2NW/4, SW/4NE/4), 22 (S/2), 28 (N/2) Figure 2 is a map showing the proposed changes to the affected area of Prudhoe Bay Raven Oil Pool CO 570. Figure 3 is a map showing the proposed changes to the affected area of Prudhoe Bay Raven Oil Pool AIO 31. Application for Expansion of the Prudhoe Bay Raven Oil Pool Figure 2: Location map. Proposed expansion of CO 570 Prudhoe Bay Raven Oil Pool affected areas. Application for Expansion of the Prudhoe Bay Raven Oil Pool Figure 3: Location map. Proposed expansion of AIO 31 Prudhoe Bay Raven Oil Pool affected areas. Application for Expansion of the Prudhoe Bay Raven Oil Pool 4. Development Drilling Plans Expansion of the Prudhoe Bay Raven Oil Pool will include extension of the oil pool to the west, north, and east for future development of Sag River and Ivishak reservoirs from the Niakuk pad. Production from the Sag River in existing wells NK-08B and NK-14B will be contained within the new pool boundary. To the east, the new pool boundary will match the Prudhoe Bay unit boundary with the Duck Island unit. Figures 4a, 4b, and 4c contain dashed lines representing drilling opportunities in the area of the proposed pool expansion overlain on a Sag River structural depth map, as well as Sag River and Ivishak possible net pay maps. Figures 5a and 5b display well log and seismic cross-sections through the area, along with interpreted oil-water contacts based on wells SD-08, NK-14B, and NK-08B. Drilling opportunities in the area primarily target the Sag River sand. These opportunities are based on existing production at NK-14B, oil shows in NK-41A, and a DST test in SD-08. Development of the Sag River is expected to occur through a combination of producers and injectors. The precise number of injectors and their position relative to producers has yet to be determined. Based on the structural interpretation, an oil column may be present up-structure of SD-08 in Ivishak sands of the eastern area. A viable Ivishak oil column is possible in the northern portion of the area, but unlikely in western areas of the pool expansion. Penetrations in the NK-14B and NK-08B development wells showed the Ivishak to be predominantly wet to the west. Additionally, expansion of the pool and drilling of future development wells will allow further evaluation of sand quality and hydrocarbon presence in Kuparuk sands of the overlying Niakuk Oil Pool.