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Home My WebLink AboutCO 432 FCONSERVATION ORDER 432F Kuparuk River Field Kuparuk River Unit Milne Point Unit Kuparuk River Oil Pool 1. September 5, 2023 Hilcorp Application for expansion of the Kuparuk River Oil Pool 2. September 28, 2023 Notice of public hearing and affidavit of publication (confidential documents held in secure storage) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: ON ITS OWN MOTION THE ALASKA OIL AND GAS CONSERVATION COMMISSION proposes to divide the Kuparuk River Oil Pool as defined by Conservation Order No. 432E along the boundary between the portion of the pool operated by ConocoPhillips Alaska, Inc. and the portion of the pool operated by Hilcorp Alaska, LLC ) ) ) ) ) ) ) ) ) ) Conservation Order 432F Kuparuk River Field Kuparuk River Unit Kuparuk River Oil Pool May 29, 2024 IT APPEARING THAT: 1.On its own motion, the AOGCC proposed to contract CO 432E to contain only the portion of the Kuparuk River Oil Pool (KROP) that is currently in the Kuparuk River Unit (KRU) and being operated by ConocoPhillips Alaska, Inc. (CPAI). This decision was influenced by Hil- corp Alaska, LLC’s (Hilcorp) application to expand the KROP on acreage it operates. Hil- corp’s application will be handled by the issuance of a new set of pool rules specific to Hil- corp’s operations. 2.Pursuant to 20 AAC 25.540, the AOGCC scheduled a public hearing for November 7, 2023. On September 28, 2023, the AOGCC published notice of the hearing on the State of Alaska’s Online Public Notices website and on the AOGCC’s website, and the AOGCC electronically transmitted the notice to all persons on the AOGCC’s email distribution list. On October 1, 2023, the notice was published in the ANCHORAGE DAILY NEWS. 3.The AOGCC received no comments or request to hold the proposed hearing. 4.The tentatively scheduled hearing was vacated. FINDINGS: 1.Operators: The proposed update to the KROP encompasses the development area within the Kuparuk River Unit (KRU) operated by CPAI. 2.Owners and Landowners: CPAI, ConocoPhillips Alaska II Inc., Chevron U.S.A. Inc., and ExxonMobil Alaska Production Inc. are the owners of the KRU. The State of Alaska, Department of Natural Resources (DNR) is the landowner. 3.Kuparuk River Oil Pool Designation: The KROP is defined by Conservation Order No. 432E (CO 432E) as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. Conservation Order 432F May 29, 2024 Page 2 of 11 CONCLUSION: 1. The Kuparuk Formation across the KRU and MPU comprise a single oil pool per AOGCC statutes. 2. Where a pool has more than one operator, pool rules that are limited to the portion of that pool that is operated by a single operator are appropriate to allow each operator to develop their portions of the KROP in the manner that they deem appropriate. NOW, THEREFORE, IT IS ORDERED: This Conservation Order 432F supersedes COs 432, 432A, 432B, 432C, 432D, and 432E and all administrative approvals issued under those orders except for CO 432D.001, CO 432D.007, CO 432D.010, CO 432D.011, and CO 432D.012 which remain in effect. The findings, conclusions, and administrative record for these orders are incorporated in this order. In addition to the requirements of 20 AAC 25, and to the extent such requirements are not superseded by these rules or other conservation orders, the following rules shall apply to the Kuparuk River Oil Pool within the affected area. Affected Area: Umiat Meridian Township 9 North, Range 6 East Sections 1, 2, and 11-14 Township 9 North, Range 7 East Sections 1-18 Township 9 North, Range 8 East Sections 1-18 Township 9 North, Range 9 East Sections 1-18 Township 9 North, Range 10 East Sections 1-12 Township 10 North, Range 6 East Sections 1-4, 9-16, 21-26, 35, and 36 Township 10 North, Range 7 East All Township 10 North, Range 8 East All Township 10 North, Range 9 East All Township 10 North, Range 10 East All Township 10 North, Range 11 East Sections 5-8 and 17-20 Township 10 North, Range 6 East Sections 25, 26, 35, and 36 Township 11 North, Range 7 East Sections 1-4 and 9-36 Township 11 North, Range 8 East All Township 11 North, Range 9 East All Township 11 North, Range 10 East All Conservation Order 432F May 29, 2024 Page 3 of 11 Township 11 North, Range 11 East Sections 5-8, 16-23, and 26-36 Township 12 North, Range 7 East Sections 1, 2, 11-16, 21-26, 35, and 36 Township 12 North, Range 8 East All Township 12 North, Range 9 East All Township 12 North, Range 10 East Sections 3-10, 14-23, and 25-36 Township 13 North, Range 8 East Sections 13, 14, 22-28, and 33-36 Township 13 North, Range 9 East Sections 2 – SW1/4, 3-10, 11 – W1/2 and SE1/4 Township 14 North, Range 9 East Sections 1-10, 16-18, 20, 21, 28, 29, 32, and 33 Township 15 North, Range 9 East State lands within sections 25-27 and 31-36. Rule 1 Name of Field (Restated from CO 432E) The name of the field shall be the Kuparuk River Field. (Source CO 173) Rule 2 Definition of Pool (Restated from CO 432E) The name of the pool in the Kuparuk River Field shall be the Kuparuk River Oil Pool and is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. (Source CO 173) Rule 3 Well Spacing (Restated from CO 432E) There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to an external property line where ownership or landownership changes. Rule 4 Casing and Cementing Requirements (Restated from CO 432E) a. Casing and cementing requirements are as specified in 20 AAC 25.030, CASING AND CEMENTING, except as modified below. (Source CO 173) b. For proper anchorage and to prevent an uncontrolled flow, a conductor casing shall be set at least 75 feet below the surface and sufficient cement shall be used to fill the annulus behind the pipe to the surface. (Source CO 173) c. For proper anchorage, to prevent an uncontrolled flow, and to protect the well from the effects of permafrost thaw-subsidence and freeze back, a string of surface casing shall be set at least 500 measured feet below the base of the permafrost section but not below 2700 feet true vertical depth. Sufficient cement shall be used to fill the annulus behind the casing to the surface. (Source CO 173, CO 193, 203, 209 & 229 – authorized depths of surface casing for various Drill Sites are detailed in following table) 1) Drill Pad 2Z Kuparuk River oil pool wells may be drilled to a maximum depth of 3250 feet true vertical depth before surface casing is set so long as drilling fluid densities are Conservation Order 432F May 29, 2024 Page 4 of 11 monitored and maintained at 10.0 pounds per gallon. (Source CO 190, modified by AA 190.01 - 190.15) 2) Drill Pad 2X and 2C Kuparuk River oil pool wells may be drilled to a maximum depth of 2975 feet true vertical depth before surface casing is set. (Source CO 190, modified by AA 190.01 - 190.15) 3) In the event that geologic conditions are not as anticipated, the AOGCC may change the maximum depth for setting surface casing by administrative action, provided a request, in writing, is timely submitted. (Source CO 190) AA No. Drill Sites Authorized Surface Casing Depth Pursuant to Rule 4(c) CO 190 AA 190.1 1F 3350’ TVD AA 190.4 2Z 3450’ TVD AA 190.6 2K 3000’ TVD AA 190.7 2K 3452’ TVD AA 190.10 3G 3500’ TVD AA 190.11 1A 3900’ TVD AA 190.12 3R 4200’ TVD AA 190.13 1H 4100’ TVD AA 190.14 1H 4400’ TVD AA 190.15 1Y 4400’ TVD Conservation Order Drill Sites Authorized Surface Casing Depth Pursuant to CO 173 Rule 4(c) and 20 AAC 25.035(b) CO 193 2A, 2B, 2D, 2F, 2G, 2H, 2V 3200’ TVD CO 203 1L, 1Q, 1R, 2E, 2U, 2W, 3B, 3C 3800’ TVD CO 209 1R, 2A, 2H, 2T, 3A, 3B, 3C, 3F, 3J, 3K, 3M, 3N, 3O, 3Q 4150’ TVD CO 229 2M, 3H 3700’ TVD d. The surface casing, including connections, shall have minimum post-yield strain properties of 0.9% in tension and 1.26% in compression. (Source CO 173 and CO 173.004) 1) The only types and grades of casing, with threaded connections, that have been shown to meet the requirements in (d) above and have been approved for use as surface casing are the following: (A) 13 3/8 inch, 72 pounds/foot, L-80, Buttress; (B) 13-3/8 inch, 72 pounds/foot, N-80, Buttress; (C) 13-38 inch, 68 pounds/foot, MN-80, Buttress; (D) 10-3/4 inch, 45.5 pounds/foot, K-55, Buttress; Conservation Order 432F May 29, 2024 Page 5 of 11 (E) 10-3/4 inch, 45.5 pounds/foot, HF-ERW Arctic Grade, J-55, Buttress; (F) 9-5/8 inch, 36 pound/foot, K-55, Buttress; (G) 9-5/8 inch, 40 pounds/foot, K-55, Buttress; (H) 9-5/8 inch, 36 pounds/foot, HF-ERW Arctic Grade, J-55, But- tress; (I) 9-5/8 inch, 40 pounds/foot, HF-ERW Arctic Grade, J-55, But- tress; and (J) 9-5/8 inch, 47 pounds/foot, L-80, Buttress 2) The AOGCC may approve other types and grades of surface casing upon a showing that the proposed casing and connection can meet the post-yield strain requirements in (d) above. This evidence shall consist of one of the following: (A) Full scale tensile and compressive tests, (B) Finite element model studies; or, (C) Other types of axial strain data acceptable to the AOGCC. e. Other means for protecting and maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze back may be approved by the AOGCC upon application. (Source CO 173) f. The AOGCC may approve alternative completion methods (to 20 AAC 25.030(b)(4) and (5)) upon application and presentation of data that shows the alternatives are based on accepted engineering principles. Such alternative designs may include: (Source CO 173) 1) Slotted liners, wire wrapped screen liners, or combinations thereof, landed inside of open hole and may be gravel packed; 2) Open hole completions provided that the casing is set not more than 200 feet above the productive zone. Rule 5 Automatic Shut-In Equipment (Rescinded by Other Order 66) Rule 6 Safety Flares (Repealed by 20 AAC 25.235) Rule 7 Gas-Oil Ratio Tests (Restated from CO 432E) Repealed by Conservation Order 262, dated October 23, 1990. Rule 8 Pressure Surveys (Restated from CO 432E) a. A bottom-hole pressure survey shall be taken on each well prior to initial sustained production. (Source CO 230) b. The operator shall obtain pressure surveys as needed to effectively manage hydrocarbon recovery processes subject to an annual plan outlined in (d) of this rule. (Source CO 432) c. Bottom-hole pressures obtained by a static buildup pressure survey, a 24-hour shut-in instantaneous test, a multiple flow rate test or an injection fall-off test will be acceptable. Calculation of bottom-hole pressures from surface data will be permitted for water injection Conservation Order 432F May 29, 2024 Page 6 of 11 wells. (Source CO 230) d. Data from the surveys required in this rule shall be filed with the AOGCC by April 1 of the subsequent year in which the surveys are conducted. Along with the survey submittal, the operator will provide a proposed survey plan for the upcoming year. Reservoir Pressure Reports, Form 10-412, shall be utilized for all surveys with attachments for complete additional data. Data submitted shall include, but are not limited to, rate, pressure, time, depths, fluid gradient, temperature, and other well conditions necessary for complete analysis of each survey being conducted. The pool pressure datum plane shall be 6,200 feet subsea. (Source CO 230, 432) e. Results and data from any special reservoir pressure monitoring techniques, tests, or surveys shall also be submitted as prescribed in (d) of this rule. (Source CO 230) f. Upon application by the operator, the AOGCC in its discretion may administratively approve exceptions to this rule. (Source CO 230) Rule 9 Productivity Profiles (Restated from CO 432E) a. During the first year of production, a production survey shall be run in each well that has multiple sand intervals open to the well bore. (Source CO 173) b. Subsequent surveys shall be run in wells that exhibit uncharacteristic changes in performance. Subsequent surveys shall also be required in wells which have had remedial work performed to change the production profile unless the remedial work results in only one sand interval being open to the well bore. (Source CO 173, 276) c. All completed production surveys taken during a calendar year shall be filed with the AOGCC by April 1 of the subsequent year. The AOGCC may request data be provided in advance of an annual submittal if required. (Source CO 173, 432) d. By administrative order, the AOGCC shall specify additional surveys should it be determined that the surveys submitted under (a) and (b) are inadequate. (Source CO 173) Rule 10 Production Well Tests (Restated from CO 432E) a. A well test must be performed on each active producing well at least once every 30 days. b. Twinned production wells commingled through the same surface flowline, must be tested at least once every 30 days as a combined production stream and the individual wells must be tested separately at least once every six months or more often if the combined well test indicates uncharacteristic performance. Rule 11 Sustained Casing Pressures (Restated from CO 432E) a. The operator shall conduct and document a pressure test of tubulars and completion equipment in each development well at the time of installation or replacement 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 development 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. Conservation Order 432F May 29, 2024 Page 7 of 11 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 2,000 pounds per square inch gauge (psig) or (2) sustained outer annulus pressure that exceeds 1,000 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 development well having sustained pressure that exceeds a limit set out in paragraph (c) of this rule. The AOGCC may approve the operator’s proposal or may require other corrective action or surveillance. The AOGCC may require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a development 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 AOGCC may approve the operator’s proposal or may require other corrective action. The AOGCC may also require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under paragraph (d) or (e) of these rules, 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 paragraph (c), but not paragraph (e), of these rules may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under paragraph (c), unless the AOGCC prescribes a different limit. g. For purposes of these rules, “inner annulus” means the space in a well between tubing and production casing; “outer annulus” means the space in a well between production casing and surface casing; “sustained pressure” means pressure that (1) is measurable at the casing head of an annulus, (2) is not caused solely by temperature fluctuations, and (3) is not pressure that has been applied intentionally. Rule 12 Administrative Actions (Superseded by 20 AAC 25.556(d)) Rule 13 Allowable Gas Offtake (Restated From CO 432E) Gas offtake for the Kuparuk River Oil Pool is authorized with the following conditions: a. The maximum annual average gas offtake rate is 5 million standard cubic feet of gas per day; and Conservation Order 432F May 29, 2024 Page 8 of 11 b. In the annual surveillance report, the volume of gas offtake, in units of standard cubic feet and reservoir barrels, must be reported on a monthly basis. Annual average gas offtake rate means the daily average rate, calculated by dividing the total volume of gas delivered in a calendar year by the number of days in the year. However, in the first year that gas offtake is initiated under this rule, the annual average gas offtake rate shall be determined by dividing the total volume of gas delivered in the calendar year by the number of days that remained in that year as of the initial delivery. Rule 14 Surface Commingling of Production with the Oooguruk Unit (OU) (Source CO 432D.007) a. All KRU Oil Pools – Kuparuk River Oil Pool (Revised this order), West Sak Oil Pool (CO 406C), Tarn Oil Pool (CO 430A), Tabasco Oil Pool (CO 435A), and Meltwater Oil Pool (CO 456A) – Production Commingling, Measurement, and Allocation 1) 20 AAC 25.228 is waived to allow the following: (1) OU oil production to be processed in KRU facilities; (2) prior to custody transfer through the KRU LACT meters at the Ku- paruk Pipeline inlet, OU oil production to be commingled with the production from the portion of the Kuparuk River Oil Pool within the KRU boundaries and from all other KRU oil pools; (3) measurement of the combined OU and KRU production through the KRU LACT meter at the Kuparuk Pipeline inlet; and (4) the allocation of production between units specified below: (A) Determination of Total OU Production Sent to KRU (i) Total OU Oil Production = (MPFM measured oil at OTP shrunk to sales con- ditions and expressed at standard conditions) X (OU Loss Factor)* * Loss factor is the allowance for proportionate oil lost in KRU facilities, such as oil lost in injected water; it is expressed as a ratio between 0 and 1 and is dimensionless. (ii) Total OU Gas Production Sent to KRU = (MPFM measured gas at OTP) + (Gas measured by Micro Motion ELITE Coriolis meter off OTP slugcatcher)* * MPFM gas measurement includes gas evolved from shrinkage of liquid hydrocarbon in (a)(1)(A)(i) above; all measurements are expressed at standard conditions. (iii) Total OU Water Production sent to KRU = MPFM measured water at OTP sent to KRU for processing. (B) Determination of Total KRU Production (i) KRU Oil Production = (Combined OU and KRU LACT meter volumes)* – (OU Oil Production)** * Determined in accordance with 20 AAC 25.228. ** Determined under (a)(1)(A)(i) above. (ii) Total KRU Gas Production = (Gas production measured at KRU facilities) – (Total OU Gas Production Sent to KRU)* * Determined under (a)(1)(A)(ii) above, all volumes expressed at standard conditions. (iii) Total KRU Water Production = (Water production measured at KRU facili- ties) – (Total OU Water Production Sent to KRU)* * Determined under (a)(1)(A)(iii) above; all measurements are expressed at standard conditions. Conservation Order 432F May 29, 2024 Page 9 of 11 2) CPAI must submit to the AOGCC, DOG, and DOR monthly files containing the follow- ing: (1) daily allocation data for each pool; (2) all data necessary for, and the results of, the calculations required by (a)(1-2) above; and (3) all other relevant information. 3) Additional information requested by the AOGCC concerning production commingling, measurement, and allocation must be provided in writing to the AOGCC, DOG, and DOR within ten (10) working days of the AOGCC’s request. b. The conditions of the June 25, 2009, letter from CPAI (June 25 Letter) supporting permanent approval of using multiphase metering for fiscal allocation purposes for the OU must be com- plied with. c. the AOGCC shall be given 30 days to review and approve any proposed changes to the Multi- phase Metering Operations and Maintenance Guidelines, which is identified in Condition 1 of the June 25 Letter, before such changes may take effect; non-action by the AOGCC within 30 days shall constitute approval of the proposed changes; d. the logbook identified in Condition 5 of the June 25 Letter is made available to the AOGCC upon request; and e. the AOGCC must approve any changes to the 18-month frequency of audits of the Multiphase Flow Meters performance and accuracy, which is identified in Condition 7 of the June 25 Letter, before such changes may be implemented. Rule 15 Use of Multiphase Metering for Fiscal Allocation of Production from the Oooguruk Unit (OU) (Source CO 432E.001) The conditions of approval for using multiphase metering for fiscal allocation purposes at OU are: 1. The Measurement Metering Operations and Maintenance Guidelines set forth as Appendix 4 to the April 14, 2008, joint application to the AOGCC shall be the basis for all current and future maintenance. Changes to the Guidelines must be mutually agreed upon between Eni and CPAI and remain under a revision control procedure. 2. Eni must perform a Fluid Point Reference (FPR) at least every 31 days. If the fluid properties are known to have changed, Eni must perform a FPR using a representative combined fluid sample from the onshore separator within four days of the change. Events that may trigger a change in fluid properties include the introduction of a new well and shutting in, or bringing on, one or more producing wells. 3. When an extraordinary event occurs, Eni must perform calibration checks on MPFM second- ary instrumentation and recalibrate them if necessary. Secondary instrumentation includes line temperature transmitter (TL), line pressure transmitter (PL), and differential pressure cell (DPV). CPAI continues to have sole but reasonable discretion to determine what constitutes an extraordinary event. Non-exclusive examples of what might reasonably be deemed an ex- traordinary event include spikes in differential pressure that put bias in the differential pres- sure cell, excessive slugging, and meter over range. 4. The MPFM data acquisition flow computer (DAFC) configuration, as agreed upon by Eni, CPAI and Schlumberger, will be checked every three months. No changes may be made to the DAFC configuration file inputs, except for the parameters associated with the updates of the Empty Pipe References and Fluid Point References, without prior agreement among all three parties. Conservation Order 432F May 29, 2024 Page 10 of 11 5. Eni must record all activity related to the MPFM that measures the Oooguruk total field pro- duction in the electronic MPFM Compliance Log found in the Web-based Report Generator (WRG). The compliance log must be available for inspection and copying by CPAI. Exam- ples of activity that must be recorded in the logbook include dates, times and notes pertaining to calibrations, data validations, changes to the DAFC, audits, nuclear source tests/replace- ments, and walk-around findings. 6. Eni is to log MPFM data (at the DAFC) at 1-second intervals. This data will be stored and retained to allow for post-processing analysis at CPAI's request. 7. As provided for under Section 9.7 of Attachment 4 to the Production Processing and Services Agreement (PPSA), an audit team that includes Eni, CPAI, and an Independent Party, recog- nized as an expert and agreed by other members of the team, shall audit the MPFM perfor- mance and accuracy on a 24-month frequency, or as otherwise agreed by CPAI. The Inde- pendent Party will Chair the audit team. 8. Eni operators who perform unsupervised maintenance on the Schlumberger Vx meters must be trained and evaluated on their use and maintenance. The Eni Measurement Operations En- gineer, their designee, or qualified testing personnel may train and evaluate personnel on the use and maintenance of the Vx meters. These persons, as well as Eni Operators who have been trained and evaluated, may supervise personnel who have not completed training. Train- ing records should be available upon request. Persons filling the role of the Eni Measurement Operations Engineer should be experienced in the operation and maintenance of Schlum- berger Vx meters or multiphase flow meters using similar technology. 9. Eni must produce a monthly report relating the performance, sampling, and maintenance work carried out on the MPFM's. The report format is subject to CPAI's approval. 10. Eni must perform metering maintenance activities according to the following frequency schedule: OTP MPFM Fiscal Metering Maintenance Procedures Activity Frequency Gas, Oil and Water Allocation Metering Daily Checks Daily General Meter Walk Around and Inspection Daily Transmitter Calibration Checks: DPV, PL and TL 31 Days Fluid Point Reference (FPR) Update 31 Days Nuclear source Wipe Tests 6 Mo Ex and ExD Checks – Explosion-Proof DAFC Housing 1 Yr Thermowell Inspections 1 Yr Recalibrate Dedicated Test Equipment at NIST/Approved Lab 2 Yr MPFM Venturi Inspection* 3 Yr Nuclear Source Replacement** 5 Yr * CPAI, with AOGCC approval, reserves the right to change the frequency of MPFM Venturi Inspections back to the two-year interval specified in the June 25, 2009, letter to Pioneer that was subsequently incorporated in the AOGCC's approval. **CPAI, with AOGCC approval, reserves the right to grant up to five successive one-year exten- sions to the replacement interval for the OTP nuclear sources. Eni shall request each one-year Conservation Order 432F May 29, 2024 Page 11 of 11 extension, with CPAI approval based on an evaluation of nuclear source performance and MPFM uncertainty. The maximum length of time between replacement of the OTP nuclear sources shall not exceed 10 years. Custody Gas Meter Maintenance Procedures Activity Frequency General Meter Walk Around and Inspection Daily USM Temperature & Pressure Transmitter Calibration Checks 31 Days USM Meterlink Maintenance/Diagnostics Log 31 Days Coriolis Smart Meter Verification 31 Days Coriolis Molecular Weight/Compressibility Update 31 Days Recalibrate Dedicated Test Equipment at NIST/Approved Lab 2 Yr Gas Meter Inspection and Cleaning Planned Plan SD DONE at Anchorage, Alaska and dated May 29, 2024. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner 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 reconsider- ation 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 Wilson Digitally signed by Gregory Wilson Date: 2024.05.29 15:43:28 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.05.29 16:59:31 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.05.30 09:20:22 -08'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Order 432F (CPAI) Date:Thursday, May 30, 2024 2:35:53 PM Attachments:co 432f.pdf ON ITS OWN MOTION THE ALASKA OIL AND GAS CONSERVATION COMMISSION proposes to divide the Kuparuk River Oil Pool as defined by Conservation Order No. 432E along the boundary between the portion of the pool operated by ConocoPhillips Alaska, Inc. and the portion of the pool operated by Hilcorp Alaska, LLC 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-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. CO 432E defines the KROP, which extends from the Kuparuk River Unit (KRU) operated by ConocoPhillips Alaska, Inc., into the MPU and prescribes rules for its development. AIO 10B authorizes enhanced oil recovery injection operations for the KROP, Schrader Bluff Oil Pool, and the Sag River Oil Pool in the MPU. Hilcorp proposes to amend these orders to expand the map extent of the KROP in the MPU to include new acreage to be developed under the same rules as the rest of the KROP. In addition to Hilcorp’s requests, the AOGCC proposes to contract CO 432E to contain only the portion of it that is currently in the KRU and issue a new conservation order to contain the acreage contracted out of CO 432E and, if approved, the proposed expansion acreage. Aside from some minor changes that will be necessary to eliminate a rule that is specific to a unit from the rules for the other pool and some grammatical changes to make clear the rule applies to a single unit instead of multiple units, the rules for the contracted CO 432E and the newly established order establishing pool rules for the KROP in the MPU would be essentially identical to the rules that currently exist in CO 432E. This would have the effect of allowing each operator and each field to have its own set of pool rules that could be modified as needed in the future for that field’s/operator’s specific purposes. This would also be consistent with how the AOGCC prescribes rules for other pools, such as the Nanushuk Formation and Schrader Bluff Formation, for which the geology crosses unit boundaries. 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 November 7, 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: 602 002 645#. 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 October 16, 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 October 13, 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 November 1, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the November 7, 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 October 31, 2023. Jessie L. Chmielowski Commissioner Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.09.28 08:45:09 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AIO-23-029 and CO-23-014 public hearing notice expand KROP Date:Thursday, September 28, 2023 9:28:36 AM Attachments:AIO-23-029 and CO-23-014 public hearing notice expand KROP.pdf Docket Numbers: AIO-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. 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 ______________________________________ 10/01/2023 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 2nd day of October 2023. Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0040889 Cost: $423.1 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. CO 432E defines the KROP, which extends from the Kuparuk River Unit (KRU) operated by ConocoPhillips Alaska, Inc., into the MPU and prescribes rules for its development. AIO 10B authorizes enhanced oil recovery injection operations for the KROP, Schrader Bluff Oil Pool, and the Sag River Oil Pool in the MPU. Hilcorp proposes to amend these orders to expand the map extent of the KROP in the MPU to include new acreage to be developed under the same rules as the rest of the KROP. In addition to Hilcorp’s requests, the AOGCC proposes to contract CO 432E to contain only the portion of it that is currently in the KRU and issue a new conservation order to contain the acreage contracted out of CO 432E and, if approved, the proposed expansion acreage. Aside from some minor changes that will be necessary to eliminate a rule that is specific to a unit from the rules for the other pool and some grammatical changes to make clear the rule applies to a single unit instead of multiple units, the rules for the contracted CO 432E and the newly established order establishing pool rules for the KROP in the MPU would be essentially identical to the rules that currently exist in CO 432E. This would have the effect of allowing each operator and each field to have its own set of pool rules that could be modified as needed in the future for that field’s/operator’s specific purposes. This would also be consistent with how the AOGCC prescribes rules for other pools, such as the Nanushuk Formation and Schrader Bluff Formation, for which the geology crosses unit boundaries. 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 November 7, 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: 602 002 645#. 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 October 16, 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 October 13, 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 November 1, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the November 7, 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 October 31, 2023. Jessie L. ChmielowskiCommissioner Pub: Oct. 1, 2023 STATE OF ALASKA THIRD JUDICIAL DISTRICT 2024-07-14 Document Ref: M3RXL-JXBBT-HKM6H-MNLTK Page 32 of 54 1 Ifl Hilcorp Alaska, LLC September 5, 2023 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Expansion of the Kuparuk River Oil Pool Milne Point Unit Commissioner Huber: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: (907) 777-8414 Fax:(907) 777-8301 Email: mschoetz@hllcorp.com Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, hereby submits this application for expanding the Affected Area of the Milne Point Unit Kuparuk River Oil Pool (KROP) as described in Conservation Order 432E. Proposed Affected Area Expansion Hilcorp requests to expand the Affected Area of the KROP to include T14N, R10E Sections 5-8 (`Expansion Area"), being the same lands that comprise State Oil and Gas Lease ADL 394167 and depicted in Figure 1. These lands will be targeted in the future, beginning as early as Q4 2023. Hilcorp submits this application to expand the application of the rules of Conservation Order 432E to include the Expansion Area. Development Drilling Plans and Geology The proposed northern expansion of the KROP would allow for further development of Kuparuk reservoirs from Milne F-Pad. Figure 2 depicts the current Affected Area in relation to the proposed Kuparuk `A sands' drillwells, labelled as `F-17A' (blue line for injector) and `F-34A' (green line for producer). Interpretation of seismic data suggests the Kuparuk structure extends to the north into the proposed Expansion Area. As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp's proposal to expand the KROP Affected Area has been sent by certified mail to those certain owners, landowners, and operators of property within t/4 mile of the proposed Expansion Area listed in Exhibit A. A Copy of the notice and corresponding certified mailing receipts have been attached to this application. Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River Oil Pool September 5, 2023 Page 2 of 6 Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit B, is an affidavit executed by a person acquainted with all pertinent facts of.this application and verifying that all facts set forth herein are true. It is requested that the Commission schedule a public hearing to review Hilcorp's application for expansion of the KROP in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8414 or by email at mschoetz aQku']com.com Sincerely, Michael W. Schoetz, CPL Division Landman Hilcorp Alaska, LLC cc: Samantha Carlisle, Special Assistant, AOGCC (via email) Hilcorp Alaska, LLC Application for Expansion of the Kaparuk River Oil Pool September 5, 2023 Page 3 of 6 1SN009--------------- ,+; Area Injecfion Order IOB Conservation Order 432E Unit Boundary Leasehold FIGURE 1. Affected Area defined in CO 432E with proposed Expansion Area lands labelled as ADL394167. Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River OR Pool September 5, 2023 Page 4 of 6 A UM167 F34A F.17A noL t o qte . •_ ADL365018 - A LXWW AOIM]43C FIGURE 2. Proposed F-17A and F-34A wells in relation to the proposed Expansion area, ADL 394167. 10corp Alaska, LLC Application for Expansion of the Kuparak River Oil Pool September 5, 2023 Page 5 of 6 EXHIBIT A APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL Lease Landowner Owner Operator ADL 355016 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive Sections: 15 - 22 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99503 Suite 1400 Anchorage, AK 99501-3560 Anchorage, Alaska 99503 Township: 14 North Attn: Derek Nottingham, Director Herbaly Exploration LLC ATTN: Dave Herbaly Range: 10 East 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 Meridian: Umiat George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 ADL 355021 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive Sections: 11 - 15, 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99503 Suite 1400 22 - 24 Anchorage, AK 99501-3560 Anchorage, Alaska 99503 Attn: Derek Nottingham, Director ENI Petroleum US LLC Township: 14 North ATTN: Robert Province 3700 Centerpoint Drive, Suite 300 Range: 9 East Anchorage, Alaska 99503 Meridian: Umiat Herbaly Exploration LLC ATTN: Dave Herbaly 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River Oil Pool September 5, 2023 Page 6 of 6 EXHIBIT B APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL VERIFICATION OF APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL NORTH SLOPE ALASKA ADL 394167 Hilcorp Alaska, LLC I, Michael W. Schoetz, Division Landman, Hilcorp Alaska, LLC do hereby verify the following: I am acquainted with the application submitted for the expansion of the Kuparuk River Oil Pool in the Milne Point Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska, this 5th day of September 2023. Michael W. Schoetz, CPL Division Landman STATE OF ALASKA ) THIRD JUDICIAL DISTRICT) SUBSCRIBED TO AND SWORN before me this 5h day of September 2023 NOTARY IC IN AND FOR NOTARY - STATE OF ALASKA PUBLIC,:` My commission Expires: January 26, 2025 9171 9690 0935 0306 6432 50 Department of Natural Resources Division of Oil & Gas Attn: Derek Nottingham, Director 550 W. 7th Avenue, Suite 1100 Anchorage, AK 99501-3560 ENI Petroleum US LLC Attn: Robert Province 3700 Centerpoint Drive, Suite 300 Anchorage, Alaska 99503 George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 Herbaly Exploration LLC Attn: Dave Herbaly 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 1111111111111111111111111111111 9171 9690 0935 0306 6432 50 9171 9690 0935 0306 6432 50 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 81 PLACE STICKER AT TOP OF ENVELOPE TO THE FIGHT - - - - - -- - ` - OF THE RETURN ADDRESS, FOLD AT-OOTTED. LINE - - CERTIFIED MAIL,M000