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Home My WebLink About198-026Pages NOT Scanned in this Well History File XHVZE This page identifies those items that were not scanned during the initial scanning project. They are available in the original file and viewable by direct inspection. //~.~~ File Number of Well History File PAGES TO DELETE RESCAN [3 E] Color items - Pages: Grayscale, halftones, pictures, graphs, charts - Pages: Poor Quality Original - Pages: Other- Pages: DIGITAL DATA E] OVERSIZED Diskettes, No. Other, No/Type Logs of various kinds Other Complete COMMENTS: [3 Scanned by: Beverly Mildred Dareth;'~ Lowell TO RE-SCAN Notes: Is/ Re-Scanned by: Beverly Mildred Daretha(Nathan .I)_owell Date: /s' ALASKA OIL AND GAS CONSERYA~ION CO~ISSION TONY KNOWLES, GOVERNOR 333 W. 7r" AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 J.B. Riddle Region Landman Marathon Oil Company PO Box 196168 Anchorage AK 99519 Re~ Expired PTD 98-026 Well Number BC- 10 Dear Riddle: September 6, 2001 The Alaska Oil and Gas Conservation Commission ("AOGCC") approved the following referenced permit to drills. The AOGCC has a long-standing policy of releasing cancelled or expired permits two years from the date the application was approved by the AOGCC. The above file is scheduled to be released October 1,2001. Sincerely, Executive Secretary Memorandum State of Alaska Oil and Gas Conservation Commission To' Well File 198-026 DATE November 25, 2000 Re: Expired Permit Action WELL: Beaver Creek Unit 10XX API# 50133-20482-95 Permit Issued: 02/25/1998 This memo will remain at the front of the subject well file. Our adopted conventions for assigning APl numbers, permit numbers and well names did not specifically address expired or cancelled permits. This omission has caused some inconsistencies in the treatment of these kinds of applications for permit to drill. Operators have asked us to adopt formal procedures for this class of permit application in order to prevent future database disparities. If a permit expires or is cancelled by an operator, the permit number of the subject permit will remain unchanged. The APl number and in some instances the well name reflect the number of preexisting redrills and or multilaterals in a well. In order to prevent confusing a can celled or expired permit with an active well or multilateral these case sensitive well identifiers will be changed for expired and cancelled applications for permits to drill. The APl number for this cancelled or expired permit is modified so the eleven an d twelfth digits is -95. The well number for a cancelled or expired permit is modified with an appended XX. CANCELED PERMITS ARE RELEASABLE 2 years from the date on the letter received from the operator requesting the permit canceled.. (Memorandum January 23, 1997 by Dave Johnston, subject: Canceled and Expired Permits) EXPIRED PERMITS ARE RELEASABLE 2 years from the date on the application was issued by the commission, unless the operator ask for extended confidentiality. AOGCC database has been changed to reflect these changes to this permit. Stbve McMains Statistical Technician Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department if you answer "yes" to any of the questions related to that department. Maps and plan drawings must be included with your packet. An incomplete packet will be returned. APPLICANT INFORMATION 1. Marathon Oil Company Name of Applicant P. O. Box 196168 Address Anchora[le Alaska 99519-6168 city (907) 561-5311 State Zip Code Daytime Phone (907) 564-6489 2. W.C. Barron Agent (or responsible party if other than applicant) P. O. Box 196168 Address Anchora~le city 1907) 564-6325 D~ytime Phone (907) 564-6489 Fax Number Fax Number Alaska 99519-6168 State Zip Code PROJECT INFORMATION 1. This activity is a: [~new project [--'lmodification or addition to an existing project If a modification do you currently have any State, federal or local approvals related to this activity? ..................... NOTE: Approval means any form of authorization. If "yes", please list below: Approval Type Approval # Issuance Date Yes Expiration Date No 2. Has this project ever been reviewed by the State of Alaska per the ACMP? ....... E~] Previous State I.D. Number: AK Previous Project Name: PROJECT DESCRIPTION 1. Attach the following: · a detailed description of the project and all associated facilities; · a project timeline for completion of all major activities in the proposal; · a site plan depicting all proposed actions; · other supportin_cl documentation that would facilitate review of the project. Note: If the project is a modification, identify existing facilities as well as proposed activities on the site plan. Proposed starting date for project: 7/1/98 Proposed ending date for project: 7~30~98 Provide a brief description of your entire project and ALL associated facilities (access roads, caretaker facilities, waste disposal sites, etc.). Drill and complete well BC~10 as a directional development gas well in Beaver Creek Field on Pad #3. Please see attached. o Revised 11/95 Page 1 O:\BC10\CZMPRM.XLS PUBLIC NOTICE Alaska Coastal Management Program Division of Governmental Coordination The following project is proposed in your area, and your comments on the projects consistency with the Alaska Coastal Management Program (ACMP) are requested. Your comments are required to preserve your rights to file a petition under Alaska Statute 46.40.100 asking the Coastal Policy Council to review the development of a proposed Consistency Determination. PROPOSED PROJECT & LOCATION: Gas Production Well. Drill and complete well BC #10 as a directional development gas well in the Beaver Creek Field. Well site located within Marathon's Beaver Creek Production Facility, Pad #3 (Sec. 34, T7N, R1 OW Seward Meridian, Kenai C-3 Quad.). This facility is located 9.5 miles northeast of Kenai and 12 miles north of Soldotna, within the Kenai National Moose Range, Kenai Peninsula, Alaska. APPLICANT/AGENT: Marathon Oil Company PROJECT NUMBER: STATE I.D. # 9802-02OG DEADLINE FOR WRITTEN COMMENTS: March 11, 1998 FOR MORE INFORMATION OR TO SUBMIT COMMENTS CONTACT: Gene Pavia Division of Governmental Coordination/Joint Pipeline Office 411 West 4th Avenue, Suite 2C Anchorage, Alaska 99501-2343 Phone: 271-4317 Fax: 272-0690 Individuals with disabilities who may need auxiliary aids, services, or special modifications to participate in this review may call 271-4317. Dated in Anchorage on Feb. 3, 1998 Published in the Anchorage Daily News on Feb. 6, 1998. Published in the Peninsula Clarion Feb. 6, 1998. PROJECT LOCATION 1. Attach a copy of the topographical map with the project location marked on it. . Location of project (include nearest community or name of the land feature or body of water. Identify township, range and section): Marathon's Beaver Creek Production Facility, Pad #3 Township 7N Range 1 OW Section 34 Ueddian Seward Latitude/Longitude 3. The project is on: ~--']State Land* ~Federa, Land E~]Private Land r'--~Municipa, Land *State land can be uplands, tidelands, or submerged lands to 3 miles offshore. See Question #1 in DNR section. . o The project is located in which region (see attached map): E~Northern r~southcentral [~Southeast r~state Pipeline Coordinator's Office Is the project located in a coastal district? .......... If yes, please contact the district representative listed on the attached sheet. Yes No 6. Identify the communities closest to your project location: 12 miles north of Soldotna 9.5 miles northeast of Kenai, FEDERAL APPROVALS 1. Is the proposed project on U.S. Forest Service (USFS) land or will you need to cross USFS lands for access? ................... Does the cost of the project exceed $250,000? ............ -If yes, have you applied for a USFS permit or approval? ......... Date of submittal: Yes .Iq .Iq .I-1 No . Is the proposed project on Bureau of Land Management (BL M) land or will you need to cross BLM lands for access? ...................... Does the cost of the project exceed $250,000? ................. If yes, have you applied for a BLM permit or approval? .............. Date of submittal: 16-Jan-98 Will you be constructing a bridge over tidal (ocean) waters, or navigable rivers, streams or lakes? ................... If yes, have you applied for a U.S. Coast Guard permit for a bridge? . . . Date of submittal: . Will you be dredging or placing structures or fills in any of the following: tidal (ocean) waters? streams? lakes? wetlands*? ........... If yes, have you applied for a U.S. Army Corps of Engineers (COE) permit? Date of submittal: (Note: Your application for this activity to the Corps of Engineers also serves as your application to DEC.) *If you are not certain whether your proposed project is in a wetlands, contact the U.S. Corps of Engineers, Regulatory Branch at (907) 753-2720 for a wetlands determination (outside the Anchorage area call toll free 1-800-478-2712. r- Revised 11/95 Page 2 O:\BC 10\CZM PR M.XLS , Have you applied for a U.S. Environmental Protection Agency National Pollution Discharge Elimination System (NPDES) permit? ......... Date of submittal: (Note: For information regarding the need for an NPDES permit, contact EPA at (907) 27f-5083.) Yes No Wilt you have a putrescible waste discharge within 5 miles of any public airport? ...... E~ r~ if yes, please contact the Airports Division of the Federal Aviation Administration at (907) 271-5440. Does the project include a nonfederal power project affecting any navigable body of water or located on federal land? Or, is utilization of surplus water from any federal government dam proposed? ................... (Power projects consist of dams, water conduits, reservoirs, powerhouses, and transmission lines.) If yes, have you applied for a permit from the Federal Energy Regulatory Commission (FERC)? ...................... Date of submittal: (Note: For information, contact FERC, Office of Hydropower Licensing, at (202) 208-0200.) Have you applied for permits from any other federal agency? Agency Approval Type Date Submitted Bureau of Land Management Permit to Drill 16-Jan-98 DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS 1. Will a discharge of wastewater from industrial or commercial operations occur? .... Will the discharge be connected to an already approved sewer system? .... Will the project include a stormwater collection/discharge system? ..... 2. Do you intend to construct, install, modify, or use any part of a wastewater (sewage or greywater) disposal system? .................... a) If so, will the discharge be 500 gpd or greater? ............. b) If constructing a domestic wastewater treatment or disposal system, will the system be located within fill material requiring a COl= permit? ........ If you answered yes to a or b, answer the following: 1) How deep is the bottom of the system to the top of the subsurface water table? 2) How far is any part of the wastewater disposal system from the nearest surface water? 3) Is the surrounding area inundated with water at any time of the year? . 4) How big is the fill area to be used for the absorption system? (Questions ~ & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size of the fill if wetlands are involved.) , Do you expect to request a mixing zone for your proposed project? . . . If your wastewater discharge will exceed Alaska water quality standards, you may apply for a mixing zone. If so, please contact DEC to discuss information required under 18 AAC 70.032.) Yes No Page 3 Revised 11/95 O:\BC10\CZMPRM.XLS .. o o Do you plan to store or dispose of any type of solid waste resulting from this project? . . . (Note: Solid waste means drilling wastes, garbage, refuse, sludge, and other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from industrial, commercial, and agricultural operations and from community activities.) Will your project require the application of oil, pesticides, and/or any other broadcast chemicals to the surface of the land and/or the waters of the state? ......... a. Will you have a facility that will generate air emissions from processing greater than five tons per hour of material? ............... b. Will you have one or more units of fuel burning equipment, including flaring, with a heat input rating of 50 million Btu per hour or more? .......... c. Will you have a facility containing incinerators with a total charging capacity of 1.000 pounds per hour or more? ............. d. Will you incinerate sludge? .................... e. Will you have any of the following processes: .............. [--] Asphalt plant E~ Coal preparation facility E~ Petroleum refinery E~ Portland cement plant ['-'] Petroleum Contaminated Soils Cleanup Will your facility use the following equipment? [-~ diesel internal combustion engines? Will your ment? · · · · · · · · · · · · (Total capacity equal to or greater than 1,750 kilowatts or total rated brake specific horsepower greater than 2350 bhp) gas fired boilers (Total heat input rating of ~00 milfion Btu per hour) oil fired boilers (Total heat input rating of 65 million Btu - per hour) combustion turbines (total rated power output of 8,000 Hp) facility burn more than the following per year in stationary equip- . · · · · · · · · · · · · · · · · · · · · · · 1,000,000 gallons of fuel oil ~ 35,000 tons of coal 900 million cubic feet of natural gas If you have answered "yes" to any of the above questions (6 a-g), have you installed, replaced or modified any fuel burning or processing equipment since 19777 .... 7. Will you be developing, constructing, installing, or altering a public water system? , a. Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non-crude oil as bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? , . b. Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ......... Yes No Page 4 Revised 11/95 O:\BC10\CZM PR M.XLS c. Will you be operating facilities on the land or water for the exploration or pro- duction of hydrocarbons? ..................... If you answered NO to ALL. questions in this section, continue to the next section. If you answered YES to ANY of these questions, contact the DEC Regional office for information and application forms. Please be advised that all new DEC permits and approvals require a 30-day public notice period. Yes Based on your discussion with DEC, please complete the following' Approval Type: Solid Waste Storage Date Submitted: 16-Jan-98 No 9. Does your project qualify for a general permit for wastewater or solid waste? ........ r'-'] 10. if you answered yes to any questions and are not applying for DEC permits, indicate reason below: r--] (DEC contact) told me on that no DEC approvals are required on this project. Reason' E~ Other: / DE . , PARTMENT OF FISH & GAME (DFG) APPROVALS Will you be working in, or placing anything in, a stream, river or lake? (This includes work in running water or on ice, within the active flood plain, on islands, the face of the banks or the tidelands down to mean Iow tide.) (Note: If the proposed project is located within a Federal Emergency Management Agency Zone, a Floodplain Development Permit may be required. Contact the local municipal government for additional infor- mation and a floodplain determination.) , Nameof r---~stream, r'-']river, or r--"~lake: Will you do any of the following? Please indicate below: Build a dam, river training structure or instream impoundment? E~ use the water? E~ Pump water out of the stream or lake? [-"] Divert or alter the natural stream channel? [--] Block or dam the stream (temporarily or permanently)? [-"] Change the water flow or the water channel? r'-] Introduce silt, gravel, rock, petroleum products, debris, chemicals, or other organic/inorganic waste of any type into the water? Yes No ~ Alter or stabilize the banks? [--] Mine or dig in the beds or banks? E~ use explosives? ~] Build a bridge (including an ice bridge)? r-"] Use the stream as a road (even when frozen), or crossing the stream with tracked or wheeled vehicles, log- dragging or excavation equipment (back- hoes, bulldozers, etc.)? [-"] Install a culvert or other drainage structure? Construct a weir? r-'] Use an in-stream structure not mentioned here? Is your project located in a designated State Game Refuge, Critical Habitat Area or State Sanctuary? ........................... ~ Page 5 Revised 11/95 O:\BCl 0\CTM PR M.XLS 4. Does your project include the construction/operation of a salmon hatchery? 5. Does your project affect, or is it related to, a previously permitted salmon hatchery? Does your project include the construction of an aquatic farm? ...... If you answered "No" to ALL questions in this section, continue to next section. Yes If you answered "Yes" to ANY questions under 1-3, contact the Regional DFG Habitat Division Office for information and application forms. If you answered "Yes" to questions 4-6, contact the DFG at the CFMD division headquarters for information and application forms. Based on your discuss with DFG, please complete the following: Approval Type: Date Submitted: No If you answered yes to any questions and are not applying for DFG. permits, indicate reason below: (DFG contact) told me on that no DFG approvals are required. ason: Other: DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS 1. Is the proposed project on State-owned land or will you need to cross State-owned land for access? ("access" includes temporary access for construction purposes) Note: In addition to State-owned uplands, the State owns almost all land below the ordinary high water line of navigable streams, rivers and lakes, and below the mean high tide line seaward for three miles. Do you plan to dredge or otherwise excavate/remove materials on State-owned land? Location of dredging site if other than the project site: Township Range Section Meridian . Do you plan to place fill or dredged material on State-owned land? ....... Location of fill disposal site if other than the project site: Township Range Section Meddian Source is on: [~State Land r--~Federal Land [~Private Land r=-'~Municipal Land Do you plan to use any of the following State-owned resources: . . . ['~ Timber: Will you be harvesting timber? Amount: Materials such as rock, sand or gravel, peat, soil, overburden, etc.' Which material? Amount: Location of source: ~Project site ~Other, describe: Township Range Section Meridian o Are you planning to use or divert any fresh water? ............. Amount (gallons per day): 10,000 gal/day Source: Existing water well Intended Use: Ddlling mud maintenance Yes No Page 6 Revised 11/95 O:~ICl0\CZMPRM.XLS 6. Will you be building or altering a dam? ............... 7. Do you plan to ddll a geothermal well? ............... 8. At any one site (regardless of land ownership), do you plan to do any of the following? r--] Mine five or more acres over a year's time? ~] Mine 50,000 cubic yards or more of materials (rock, sand or gravel, soil, peat, overburden, etc.) over a year's time? ["-] Have a cumulative unreclaimed mined area of five or more acres? If you plan to mine less than the acreage/amount stated above and have a cumulative unreclaimed mined area of less than five acres, do you intend to file a voluntary recla- mation plan for approval? ................... 9. Will you be exploring for extracting coal? ............... 10. Will you be drilling for oil/gas? ................... 11. Will you be investigating or removing historical or archaeological resources on State- owned land? ......................... 12. Is the proposed project located within a known geophysical hazard area? .... 13. Is the proposed project located in a unit of the Alaska State Park System? . . . If you answered "No" to ALL questions in this section, continue to certification statement. If you answered "Yes" to ANY questions in this section, contact DNR for information, Based on your discussion with DNR, please complete the following: Approval Type: Temporary Water Use Date Submitted: Permit to Drill Yes · , · · · , 16-Jan-98 16-Jan-98 14. If you answered yes to any questions and are not applying for DNR permits, indicate reason below: (DNR contact) told me on that no DNR approvals are required. Reason: r--] other: No Please be advised that the CPQ identifies permits subject to a consistency review. You may need additional permits from other agencies or local governments to proceed with your activity. Revised 11/95 Page 7 O:~K;10\CZMPRM.XLS Certification Statement The information contained herein is true and complete to the best of my knowledge. I certify that the proposed activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management Program. ~ signature of Applicant or Agent Date Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement. This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. To complete your packet, please attach your State permit applications and copies of your federal permit applications to this questionnaire. Revised 11/95 Page 8 O:~BC10~ZM PRM.XLS OFFICE OF THE GOVERNOR OFFICE OF MANAGEMENT AND BUDGET DIVISION OF GO VERNMENTAL COORDINATION TONY KNOWLES, GOVERNOR Pipeline Coordinator's Office 411 West 4th Avenue, SUITE 2C ANCHORAGE, AK 99811-0030 PH: (907) 271-4317/FAX: (907) 272-0690 W.C. Barron Marathon Oil Company P.O. Box 196168 A~nchorage, Alaska 99519-6168 March 23, 1998 Dear Mr. Barron: SUBJECT: Beaver Creek #10, Development Gas Well, Kenai Peninsula Proposed Consistency Determintion STATE I.D. NO. AK9802-02OG The Division of Governmental Coordination (DGC) is currently coordinating the review of the Beaver Creek #10 Development Gas Well project for consistency with the Alaska Coastal Management Program (ACMP) and has developed this proposed consistency determination based on reviewers' comments. Project Description Marathon Oil Company proposes to drill and complete gas well Beaver Creek #10 (BC-10) as a directional development well in the Beaver Creek Field. The well site is located within Marathon's Beaver Creek Production Facility, Pad #3 (Sec. 34, T7N, R1 OW Seward Meridian, Kenai C-3 Quadrangle). This facility is located 9.5 miles northeast of Kenai and i2 miles north of Soldotna, within the Kenai National Moose Range, Kenai Peninsula, Alaska. Permits This proposed consistency determination applies to the following federal and state authorizations as per 6 AAC 50: U.S. Bureau of Land Management - Permit to Drill RECEIVED MAR 20 1998 Naska 0il & Gas Cons. Anchorage W.C. Barron, March 24, 1998 Beaver Creek #10, AK9802-02OG Alaska Department of Environmental Conservation - Solid Waste Storage Permit (Plan Approvals) Alaska Department of Natural Resources - Temporary Water Use permit Alaska Oil and Gas Conservation Commission - Permit to Drill Consistency Determination Based on the review of your project by the Alaska Departments of Environmental Conservation (DEC), Fish and Game (DFG), Natural Resources (DNR) and the Kenai Peninsula Borough Coastal District (KPBCD), the state concurs with your certification that the project is consistent with the ACMP, provided the conditions outlined in the following stipulation are met. o All petroleum products, or hazardous materials shall be stored in leak-free containers with back-up secondary containment capable of holding 110 percent of the storage capacity plus 12 inches of freeboard, and shall be located a minimum of 100 feet from any ~vetland or open water area. Rationale: This stipulation is necessary to minimize the potential for spills or leaks and to protect water quality and important habitats (KPBC~V[P 5.8 b Oil Storage and c Storage o_f Petroleum and Petroleum Products). Advisories Each of the above referenced drill sites must have a Plan Approval for the Temporary Storage of Drilling Waste from DEC. Marathon is planing to store drilling waste at each drill site for a period of less than one year. Drilling waste will be stored on the operations pad in leak proof steel vessels with covers, prior to disposal. All storage containers will be placed on a secondary containment liner that will be installed under and around the drilling rig. Drilling waste will within one year of being generated, be transported to the Grind and Inject Plant 41-18, located in the Kenai Gas Field, for disposal by injection. , The Alaska Department of Fish and Game (DFG) advises that the drilling of this welt, if performed in accordance with standard oil and gas drilling practices, is not expected to pose any threat to fish or wildlife resources using the general area of Pad #3. The anadromous fish resources occurring in Stream No. 244-30- ! 0010-2025-3040 which drains from Beaver lake should not be affected by drilling on Pad #3 as it is located at least ½ mile from this stream in section 34. Anadromous fish use in this stream reach includes coho salmon spawning and Dolly Varden char rearing. All drilling activities W.C. Ban-on, March 24, 1998 Beaver Creek # 10, AK9802-02OG should be accomplished in a manner that prevents any disturbance or discharge or surface runoff into this anadromous water body. . DFG also advises that drilling should be accomplished in a manner that minimizes noise impacts that would disturb moose and bear use of the immediate area. , Please be advised that although the state has found the project consistent with the ACMP, based on your project description and any stipulations contained herein, you are still required to meet all applicable state and federal laws and regulations. Your consistency determination may include reference to specific laws and regulations, but this in no way precludes your responsibility to comply with other applicable laws and regulations. o If changes to the approved project are proposed prior to or during its siting, construction, or operation, you are required to contact this office immediately to determine if further review and approval of the revised project is necessary. If the actual use differs from the approved use contained in the project description, the state may amend the state approvals listed in this consistency determination. o This proposed consistency determination does not obligate DNR to issue authorization under AS 38.05 nor does it supersede the statutory obligations thereunder. You may not proceed with any specific land use activity on state lands until authorized by DNR. Elevation You must respond within five calendar days of your receipt of this proposed determination to indicate whether or not you concur with this determination. If you, the applicant, are not prepared to concur within the five-day period, you may either: (a) request an extension of the review schedule pursuant to 6 AAC 50.110(b)(8) if you need more time to consider this determination, or (b) request that the state reconsider this determination, by submitting a written statement requesting "elevation" of the determination, describing your concerns, and proposing an alternative consistency determination. This alternative determination must demonstrate how your project is consistent with the referenced standards of the ACMP and district policies. Other review participants with elevation rights pursuant to 6 AAC 50.0700) may also request an elevation if they submit the information required in (b) above to DGC within five calendar days of receipt of the proposed determination. Petition Citizens of the Kenai Peninsula Borough coastal district, who submitted written consistency W.C. Barron, March 24, 1998 Beaver Creek # 10, AK9802-02OG comments on this project on or before the comment deadline established in accordance with 6 AAC 50.070(e), may file a petition under AS 46.40.100(b)(1) seeking a review by the Coastal Policy Council of this proposed consistency determination. Any petition must be filed with this office within five calendar days after issuance of the proposed consistency determination. The petition must: (a) (b) (c) (d) show how the district coastal management plan is not being implemented, enforced, or complied with; include the petitioner's previous written comment on the consistency of the project; describe how the petitioner believes his or her previous consistency comment was not fairly considered by the coordinating agency during the consistency review; and provide the petitioner's mailing and street address, telephone number and, if available, fax number. If DGC does not receive a request for extension or an elevation statement from you, the applicant, or any other review participant with elevation rights, or a petition from a citizen of an affected coastal district meeting the requirements outlined above within the deadlines specified above, this proposed consistency determination will be issued as a final consistency determination. Thank you for your cooperation in this review process. Please contact me by calling 271-4317 or by Fax at 272-0690, or by E-mail: gpavia~jpo.doi.gov if you have any questions regarding this review. Eug~[lk(G e ne )Pav ia Project Review Coordinator Enclosure: none CC: Glenda Landua, Kenai Peninsula Borough, Soldotna Ken Hudson, Matanuska - Susitna Borough, Wasilla Rory Dabney, CIRCAC Don McKay, DFG, Anchorage Matt Rader, DNR, DOG, Anchorage Kris O'Conner, DNR, DOG, Anchorage Buz Kuby, DNR, Division of Mining and Water, Anchorage W.C. Barton, March 24, 1998 Beaver Creek # 10, AK9802-02OG Suzanne Fisler, DNR, Kenai Center Robert Dolan, DEC, Watershed, Anchorage Paul McLarnon, DEC, Solid Waste, Anchorage Ted Moore, DEC, SPAR Jim Baumgartner, DEC, AQ, Juneau Judy Bittner, SHPO, Anchorage Dave Johnston, AOGCC, Anchorage Gary Wheeler, USFWS, Anchorage Jeanne Hanson, NOAA/NMFS, Anchorage Don Kuhle, COE, Anchorage Ted Rockwell, EPA, Anchorage RECEIVED MAR ?-G 1998 Alaska 0il & Gas Cons. Comm~ss~o[} Anchorage TONY KNOWLE$, GOVERNOR ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 February 25. 1998 Mr. William Barron Operations Superintendent Marathon Oil Company P O Box 196168 Anchorage, AK 99519-6168 Re; Beaver Creek Unit BC-I0 Marathon Oil Company Permit No: 98-26 Sur. Loc. 1144'FNL. 1510'FWL, Sec. 34. T7N. RI0W, SM Btmhole Loc. 2932'FNL. 1368'FWL. Sec. 34. T7N. R10W ?i: 5623q'VD Dear Mr. Barron: Enclosed is the approved application for permit to drill thc above referenced well. Thc permit to drill docs not exempt you from obtaining additional permits required bx' law from other governmental agencies, and docs not authorize conducting drilling operations until all other required permitting determinations are made. Your request for an exception to 20 AAC 25.200(d) is approved. Blowout prevention equipment (BOPE) must be tested in accordance with 20 AAC 25.035. Sufficient notice (approximately 24 hours) of the BOPE test performed before drilling below the surface casing shoe must be given so that a representative of thc Commission max.' witness the ission at 279-1433. David W. Jo,~nston ~ ~ Chairman BY ORDER OF THE COMMISSION dlf/Enclosures CC: Department of Fish & Game. Habitat Section xv/o encl. Department of Environmental Conservation w/o cncl. OFFICE OF THE GOVERNOR TONY KNOWLE$, GOVERNOR OFFICE OF MANAGEMENT AND BUDGET DIVISION OF GOVERNMENTAL COORDINATION SOUTHCENTRAL REGIONAL OFFICE 3601 'C' STREET, SUITE 370 ANCHORAGE, ALASKA 99503-5930 PH: (907) 269-7470~FAX: (907) 561-6134 CENTRAL OFFICE P.O. BOX 110030 JUNEAU, ALASKA 99811-0030 PH: (907) 465-3562/FAX: (907) 465-3075 February 9, 1998 W.C. Barron Marathon Oil Company P.O. Box 196168 Anchorage, Alaska 99519-6168 Dear Mr. Barron: SUBJECT: Beaver Creek # 10, Development Gas Well, Kenai Peninsula Startup of Review STATE I.D. NO. AK9802-02OG ANCHORAGE, ALASKA 99501-2343 PH: (907) 271-4317~FAX: (907) 272-0690 ~'vT' ';'- . The Division of Governmental Coordination (DGC) received the coastal project questionnaire, plan of operation, permit applications, and supporting information you submitted for review by the State of Alaska. You included a consistency certification in the application packet for our concurrence under Section 307(c)(3)(A) of the Federal Coastal Zone Management Act as per 15 CFR 930, Subpart D. The Alaska Coastal Management Program (ACMP) consistency review for this project began Friday February 6, 1998 when the public notice was pUblished in the Anchorage Daily News and the Peninsula Clarion. Attached to this letter is a copy of the Coastal Project Questionnaire, the public notice, and the Project Information Sheet which identifies ACMP milestones. Project Description Marathon Oil Company proposes to drill and complete gas well Beaver Creek # 10 (BC-10) as a directional development well in the Beaver Creek Field. The well site is located within Marathon's Beaver Creek Production Facility, Pad #3 (Sec. 34, T7N, R1 OW Seward Meridian, Kenai C-3 Quadrangle). This facility is located 9.5 miles northeast of Kenai and 12 miles north of Soldotna, within the Kenai National Moose Range, Kenai Peninsula, Alaska. 01-A35LH Marathon BC- 10 February 9, 1998 STATE I.D. AK9802-02OG Permits This proposed consistency determination applies to the following federal and state authorizations as per 6 AAC 50: U.S.Bureau of Land Management - Permit to Drill Alaska Department of Environmental Conservation - Solid Waste Storage Permit Alaska Department of Natural Resources - Temporary Water Use permit Alaska Oil and Gas Conservation Commission - Permit to Drill Review Procedures The application packet has been distributed to review participants in the Alaska Coastal Management Program for their review and comments. Review participants, milestones, and associated permits are indicated on the enclosed distribution list and Project Information Sheet. Commenters should refer to the State I.D. number, AK 9802-02OG, in any future reference to this project. Pursuant to AS 46.40.094(d)(1), we request consistency review comments on the proposed project from state resource agencies, affected coastal resource districts, the public and any other interested parties. Consistency with the ACMP will be determined by reviewing the project against state standards located in 6 AAC 50 and the enforceable policies of the Kenai Peninsula Borough Coastal Management Program. Persons with rights to file a petition seeking review by the Coastal Policy Council of the proposed consistency determination (under AS 46.40.100(b)(1) must submit their comments by the March 9, 1998 comment deadline. Marathon BC- 10 February 9, 1998 STATE I.D. AK9802-02OG Thank you for your cooperation in this review process. Please contact me by calling 271-4317 or by Fax at 272-0690, or by E-mail: gpavia~jpo.doi.gov if you have any questions regarding this review. Sin Project Review Coordinator Enclosure: Coastal Project Questionnaire, Location maps, Project Information Sheet, and a copy of the Public Notice. cc: Glenda Landua, Kenai Peninsula Borough, Soldotna Ken Hudson, Matanuska - Susitna Borough, Wasilla Rory Dabney, CIRCAC Don McKay, DFG, Anchorage Matt Rader, DNR, DOG, Anchorage Kris O'Conner, DNR, DOG, Anchorage Buz Kuby, DNR, Division of Mining and Water, Anchorage Suzanne Fisler, DNR, Kenai Center Robert Dolan, DEC, Watershed, Anchorage Paul McLamon, DEC, Solid Waste, Anchorage Ted Moore, DEC, SPAR Jim Baumgartner, DEC, AQ, Juneau Judy Bittner, SHPO, Anchorage Dave Johnston, AOGCC, Anchorage Gary Wheeler, USFWS, Anchorage Jeanne Hanson, NOAA/NMFS, Anchorage Don Kuhle, COE, Anchorage Ted Rockwell, EPA, Anchorage CONTACTS TONY KNO WLES. GO VERNOR OFFICE OF THE GOVERNOR PIPELINE COORDINATOR'S OFF/CE OFFICE OF MANA GEMENT AND BUDGET 41 I W. 4th Ave., SUITE2C DIVISION OF GOVERNMENTAL COORDINATION ANCHORAGE, ALASKA 99501-2343 DEC Brad Fristoe ............ 451-2159 Fax: DFG Don McKay ............ 267-2279 DNR Matt Radar ............. 269-8776 DISTRICT: Glenda Landua ....... 262-4441 COE .................... (800) 478-2712 451-2187 Email: BFristoe@envircon.state.ak.us 267-2464 D M cKay @ fishg ame. state, ak. us 5 62-3 852 rnwr@ dnr. state, ak. us 262-8618 GLandua@borough. kenai, ak. us 753-5567 PROJECT INFORMATION SHEET PROJECT TITLE: Moquawkie Prospect Lone Creek Well(s) STATE I.D. NUMBER: AK 9802-01OG DGC CONTACT: Gene Pavia Phone: 271-4317 Fax: 272-0690 Email: GPavia@jpo.doi.gov APPLICANT/PROPONENT: Anadarko Petroleum Company AGENT: Joe Gross Phone: 227-9935 Fax: 346-3741 DIRECT FEDERAL ACTION: No REVIEW TYPE: ACMP CONSISTENCY ACTIVITY TYPE: Oil and Gas Exploratory Drilling and Testing PROJECT LOCATION: Nearest Coastal District: Kenai Peninsula Borough Project is INSIDE of the District Boundary District Plan Approved: Pending REVIEW SCHEDULE: 50 DAYS REVIEW MILESTONES: Day 1: .................................... 02/06/98 Reviewer Request for Add'l Info on or before: ......... 03/02/98 Comments Due To DGC on or before: ............... 03/11/98 Proposed Consistency Determination Issued on or before: . . 03/21/98 Final Consistency Determination Issued on or before: ..... 03/27/98 PROJECT PREVIOUSLY REVIEWED UNDER STATE I.D. NO. N/A STATE APPROVALS (AGENCY, APPROVAL TYPE AND NUMBER): DEC Areawide Oil Discharge Prevention and Contingency Plan; Air Quality Construction Permit; Solid Waste Disposal Facility Permit. DNR Temprary Water Use Permit(s) FEDERAL APPROVALS (AGENCY, APPROVAL TYPE AND NUMBER): NPDES Stormwater (GeneralPermit, already reviewed) Possible EPA SPCC plan (not part of ACMP review). Gene Pavia certifies that this packet was processed and mailed on 2/10, 1998. O:~BC10~,OGCCPTD. XLW /'~-... STATE OF ALASKA '~'-'"'. ALA& OIL AND GAS CONSERVATIC,,. -5OM~ ;ION PERMIT TO DRILL 210 AAC 25.005 la. Type of Work Drillr-~ Re-D'rillr--'] lb. Type of well. Exploratory[~ Stratigraphic Test [~] Development Oil [-'-~ Re-EntrYl-'-I Deepenl--'l servicel--"I Development Gasl-~-I Single Zonel'~I Multiple Zonel--'I Z Name of Operator 5. Datum Elevation (DF or KB) 10. Field and Pool MARATHON OIL COMPANY 185 KB feet Beaver Creek Field 3. Address 6. Property Designation P. O. Box 196168, Anchorage, AK 99519-6168 A-028083 4. Locati'on of Well at Surface 7. Unit or Property Name ,11. Type Bond (see 20 AAC 25.025) 1144' FNL, 1510' FWL,Sec.34,T7N,R10W, S.M. Beaver Creek Unit At top of Productive Interval 8. Well Number Number 2809'FNL, 1406' FWL, Sec 34, T7N, R10W @ 5086' TVD BC-10 519234 At Total Depth 9. Approximate Spud Date Amount 2932' FNL, 1368' FWL, Sec 34, T7N, R10W @ 5623' TVD 1~Jul-98 $200,000 '~'Z Distance to Nearest 13. Distance to Nearest Well 14. Number of Acres in Property 15. Proposed Depth (MD and TVD) Property Line 6776 feet 33 feet 4960 5897'MD/5450'TVD feet 16. To' be Completed fo~: Deviated Wells 17. Anticipated Pressure (see 20 AAC 25.035 (e) (2)) Kickoff Depth 1900 feet Maximum Hole Angle 31.2 ° Maximum Surface 1596 psig at Total Depth (-I-VD) 2200 psig 1'8. 'Casing Program Setting Depth Size Specifications Top Bottom Quantity of Cement Hole Casing Weight Grade Coupling Length MD TVD MD TVD (including stage data) Driven 13-3/8 72 K-55 100' 0' 0' 100' 100' 8-1/2" 7 26 N-80 LTC 1800' 0' 0' 1800' 1800' 292 sx 6-1/8" 3-1/2" 9.3 N-80 8rd 6100 0' 0' 6100' 5623' 542 sx RECEIVED ORIGINAL Naska 0il & Cas Cons. Anch0rao~e 20. Attachments Filing Feel--~ Property Platl~I BOP Sketchl-~I Diverter Sketchl-~-I Drilling Programl-~I Ddlling Fluid Programr~ Time vs Depth PlotF--] Refraction Analysis]---] Seabed ReportF-'] 20 AAC 25.050 Requirements[~-] 21. I hereby certify that the foregoing is true and correct to the best of my knowledge Signed ~--~----------~--~."~-.~,.,~ Title ~._ ~~, ~.~=~,~'t~'l>,f..~'~' Date '/~,r~r/, Commission Use Only ~;;~-' ,2- ~" 5o--/,..P,~ -- ,z. o ~'z_ a ~ ~ I ForOtherRequirements Hydrogen Sulfide Measures ['"-~Yes .~No Directional Survey Required ~~SM es ~lNo Required Working Pressure for BOPE F-"I2M ~3M F~5M r'-'] 1OM Other: .:!iai ~ri By %~r ~oP~ ~~ ~- ~av~o W. Johnstonby order of ~ )~ Form 10-401 Rev. 12-1-85 / in Triplicate DRILLING AND COMPLETION PROGRAM MARATHON OIL COMPANY ALASKA REGION WELL: BC #10 FIELD: Beaver Creek Field LEG: NA AFE No.: SLOT: NA TYPE: Sterling Producer REVISION NO.: 0 DATE: 1/16/98 SURFACE LOCATION: TARGETS: Sterling B3: 1144' FNL, 1510' FWL, Sec.34,T7N,R10W, S.M. 2809'FNL, 1406' FWL, Sec 34, T7N, R10W @ 5086' TVD BOTTOMHOLE LOCATION: 2932' FNL, 1368' FWL, Sec 34, T7N, R10W @ 5623' TVD KB ELEVATION: 185 ft. mean S.L. (est.) GL ELEVATION: 158 ft. mean S.L. (est.) I. IMPORTANT GEOLOGIC HORIZONS: FORMATION DEPTH(MD) DEPTH(TVD) Potable water is generally encountered between surface and 150 ft. Sterling B3 5472 5086 II. ESTIMATED FORMATION TOPS AND CONTENT: POTENTIAL FORMATION DEPTH (M D) DEPTH (TV D) CONTENT Sterling B-3 5472 5086 gas/water 1100 psig B-3a 5548 5151 gas/water 1200 psig B-4 5667 5253 gas/water 2200 psig TD 6100 5623 page 1 / III. WELL CONTROL EQUIPMENT DIVERTER SYSTEMS The diverter system on the 13-3/8" conductor will consist of a 13 5/8" x 5000 psi annular preventer and two 10" diverter lines each equipped with a 10" hydraulically actuated full-opening ball valve. A preselected diverter valve will open automatically and simultaneously when the annular is closed. BLOWOUT PREVENTERS The blowout preventer stack will consist of a 13-5/8" x 5000 psi annular preventer, a 13-5/8" x 5000 psi double gate ram type preventer outfitted with blind rams in the bottom and pipe rams in the top, a 13-5/8" x 5000 psi drilling spool (mud cross) equipped with 3-1/8" x 5000 psi outlets, and a 13-5/8" x 5000 psi single gate ram type preventer outfitted with pipe rams. 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 included is a poor- boy gas buster, and a vacuum-type degasser. A flow sensor will be installed in the flowline and the mudpits will contain sensors to measure the volume of fluid in the surface mud system. Both sensors will contain readouts convenient to the drillers console. WELLHEAD SYSTEM STARTING FLANGE: 13-5/8" Bradenhead STARTING HEAD: 13-5/8" - 3000 psi x 13-3/8" SOW with two 2-1/16" - 2000 psi threaded outlets, one bull plug and one 2-1/16" - 2000 psi threaded gate valve. TUBING HEAD: 7" SOW bottom x 7-1/16" - 3000 psi top tubinghead with two 2-1/16" - 3000 psi studded outlets, one blind flange and one 2-1/16" - 3000 psi flanged gate valve. CHRISTMAS TREE: 3-1/8" - 3000 psi christmas tree including two manual master valves, one flow tee, one manually adjustable choke, and one swab valve. page 2 IV. CASING PROGRAM: TYPE CONDUCTOR: SURFACE: PRODUCTION: SIZE CASING DESCRIPTION WT. GRADE THREAD 13-3/8" 72// K-55 7" 26// N-80 LTC 3-1/2" 9.3// N-80 8rd SET SET HOLE FROM TO SIZE Surf 100' Driven IO0'TVD Surf 1800' 8-1/2" 1800' TVD Surf 6100' 6-1/8" 5623' TVD CASING DESIGN SIZE 13-3/8" 3-1/2" WEIGHT 72// 26// 9.3// GRADE K-55 N-80 N-80 SETTING DEPTH,TVD FRAC GRD SHOE 100' N/A 1800 14.O 5623 17.0 FORM PRSS @ SHOE MASP DESIGN FACTORS TENS COLL BURST 842 729 17.33 4.90 9.60 2200 1596 4.80 3.62 3.17 page 3 V. CEMENTING PROGRAM SURFACE: 7"@ 1800' MD LEAD SLURRY: Class "G" with 2% S-l, 4% D-20, & 0.266% D-29 TOP OF CEMENT: SURFACE WEIGHT: 12.9 ppg. YIELD: 1.96 cu. ft./sk WATER REQ.: 10.72 gal/sk PUMPING TIME: hrs:min EXCESS (%): 100 % ESTIMATED VOLUME 184 sx TAIL SLURRY: TOP OF CEMENT: WEIGHT: YIELD: WATER REQ.: PUMPING TIME: EXCESS (%): ESTIMATED VOLUME Class "G" with 2% S-l, 0.10 gps D-145A, & 0.75 gps D-300 1300 ft. 15.8 ppg. 1.17 cu. ft./sk 5.1 gal/sk hrs:min 100 % 108 sx RUNNING AND CEMENTING DETAILS: ENSURE WEAR BUSHING IS REMOVED ! 1. Remove thread protectors and visually inspect connections. 2. Pickup shoe joint. Baker-lok float shoe. Check float. Fill pipe until circulating. 3. M/U float collar.(Baker-lok top and bottom of float collar) 4. Fill pipe until circulating. 5. Run remaining casing. M/U cementing head, install bottom plug and test all lines. 6. Circulate and reciprocate until no gain in circulating efficiency is made. 7. With as little shut down as possible, drop bottom plug and begin pumping spacer. Pump spacer as follows: 20 BBLS CW 100 8. Mix and pump 64 bbls lead slurry (184 sx). 9. Mix and pump 23 bbls of tail slurry (108 sx). 10. Displace cement. Reciprocate as long as possible. 11. Bump plug w/500~1000 psi over final circulating pressure. Check floats. 12. WOC 13. N/D diverter. Set slips. N/U casing head and blowout preventers. 14. Test BOPE. Run wear bushing. page 4 V. CEMENTING PROGRAM (continued) PRODUCTION 3-1/2" @6100' MD LEAD SLURRY: Class "G" with 4% D-20, 0.226% D-29, & D-110 TOP OF CEMENT: 1197 ft. WEIGHT: 12.9 ppg. YIELD: 2.00 cu. ft./sk WATER REQ.: 11.1 8 gal/sk PUMPING TIME: hrs:min EXCESS (%): 50 % ESTIMATED VOLUME 414 sx TAIL SLURRY: Class "G" with 0.10 gps D-145A & 0.65 gps D-300 TOP OF CEMENT: 5371 ft. WEIGHT: 15.8 ppg. YIELD: 1.18 cu. ft./sk WATER REQ.: 4.5 gal/sk PUMPING TIME: hrs:min EXCESS (%): 50 % ESTIMATED VOLUME 128 sx RUNNING AND CEMENTING DETAILS: ENSURE WEAR BUSHING IS REMOVED! I , 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Remove thread protectors and visually inspect connections. Make up float shoe and 2 shoe joints. Check float. Fill pipe until circulating. M/U float collar. (Baker-lok all connections to top of float collar) Fill pipe until circulating. Run remaining casing. M/U cementing head, install bottom plug and test all lines. Circulate and reciprocate until no gains in circulating efficiency is made. With as little shut down as possible, drop bottom plug and begin pumping spacer. Pump spacer as follows: 20 bbls CW 100 Mix and pump 147 bbls. lead slurry (414 sx). Mix and pump 27 bbls. of tail slurry (128 sx). Drop top plug. Displace cement. Reciprocate as long as possible. Bump plug w/500-1000 psi over final circulating pressure. Check floats. WOC. P/U BOP stack. Set slips. N/U tubing spool. NU tree page 5 VI. MUD PROGRAM MUD PROPERTIES DEPTH DEPTH WEIGHT VISCOSITY WATER MUD FROM TO TVD ppg sec/qt LOSS TYPE 100' 650' 8.6-10 80-250 15-30 Freshwater spud 650' 1800' 9.6-10 42-80 < 12 Non-dispersed 1800' 5623' 9.6-11.5 42-80 < 8 Gel/Gelex MUD EQUIPMENT The solids control equipment will consist of a shale shaker, a 2-cone desander, and a mudcleaner. Included will be equipment to dewater the underflow from the mud processing equipment to allow disposal of the cuttings and solids by slurrification and injection into injection well at KGF. VII. LOGGING, TESTING, AND CORING PROGRAMS LOGGING PROGRAM CONDUCTOR: SURFACE: PRODUCTION: COMPLETION: No logging is planned for this interval. No logging is planned for this interval. Phaser Ind/SP/GR, DSI/NAT/LDT/CNL/CAL from TD to 1800' No logging is planned for this interval. None planned. CORING PROGRAM TESTING PROGRAM No open hole tests are planned for this well. No mud logger will be utilized. No flare tests are anticipated. page 6 VIII. BOTTOMHOLE PRESSURES AND POTENTIAL HAZARDS Anticipated bottomhole pressures in the Sterling sands is 1100 to 2200 psi. Lost returns are possible in the depleted Sterling interval. Hydrogen sulfide gas has not been encountered in any well in the Beaver Creek field IX. OTHER INFORMATION DIRECTIONAL PLAN SOUTH DESC MD TVD INCL AZIM COORD WEST COORD VERT SECTION RKB 0 0 0 90 0 KICKOFF 1900 1900 0 90 0 build ~ 3.0 deg/lOOft HOLD 3180 3126 31 1 87 286 hold section of 31.21 deg Total Depth 6100 5623 31 187 1788 0 -35 141.7 0 282 1794 POTENTIAL INTERFERENCE: WELL DISTANCE (ft.) DEPTH (MD) Beaver Creek #3 50 1200 Beaver Creek #5 58 2550 Beaver Creek #6 33 500 Beaver Creek #9 69 0 page 7 X. DRILLING PROGRAM CONDUCTOR: Move in and rig up rotary drilling rig. Drive 13-3/8" conductor to refusal (+100' RKB.) Weld 13-5/8" starting flange to drive pipe. Nipple up 13 5/8" diverter, diverter valves, and 2-10" diverter lines. Function test diverter and diverter valves. SURFACE: Drill a 8-1/2" hole to 1800'. Run and cement 7" casing. WOC. ND diverter. Cutoff 13-3/8" and 7" casings. Weld on 7" SOW by 7-1/16" 3M wellhead. NU 13 5/8" 5M BOP'S. Test BOP'S and choke manifold to 250/2500 psi. Set wear bushing. Test surface casing to 2000 psi. PRODUCTION: Drill float equipment and 10' of new formation w/6-1/8" bit. Run leak off test. Do not exceed 12.0 ppg equivalent mud weight. Drill a 6-1/8" hole from 1800' to TD per the directional program. Log. Pull wear bushing. Run and cement 3-1/2" casing. ND BOP's. Set slips, cut casing, install 3-1/8" 3M tree and test to 2500 psi. Test Production casing to 2500 psi. COMPLETION: Completion procedure to follow. page 8 O:~BC10~AOGCCPTD,XLW Maximum Anticipated Surface Pressure Beaver Creek Field BC-IO 8-1/2" Hole to 1800' TVD MASP = (9.0 ppg + 1.0 ppg) * 0.052 * 1800 feet - (0.115 * 1800 feet) MASP = 729 psig 6-1/8" Hole to TD MASP = FORMATION PRESSURE - (GAS GRAD. * TVD) MASP - 2200 PSI - (0.115'5253) MASP = 1,596 psig Corrosion and Erosion Concerns Beaver Creek #10 Tubingless Completion January 16, 1998 Corrosion Potential The attached laboratory gas analysis shows that gas produced from the Sterling formation of Beaver Creek Field contains 0.1% CO2. This corresponds to a CO2 partial pressure of 2.2 psi at initial reservoir pressure. Typically, a well that has a CO2 partial pressure less than 7.0 is considered noncorrosive. Other facts that contribute to my conclusion that the Sterling gas is noncorrosive include: · Iow reservoir temperature (<150° F) · lack of hydrogen sulfide (H2S) · small volumes of produced water of Iow chlorides content (approximately 2000 ppm) · no historical corrosion problem Erosion Potential Attached is an analysis of erosional velocity in 3¼" tubing at 800 psig flowing tubing pressure. The analysis allows for some sand and water production. Under these conditions, erosion can be expected to occur if the flowrate up the 3%" tubing exceeds 31 MMCFD. The flow rate from BC #10 in expected to average 10 MMCFD, therefore erosion of the tubing should not occur. Advantages of a 3%" Tubingless Completion Versus Conventional Completion · Reduced casing cost (eliminate 7" casing string) · Reduced cuttings volume (reduced hole size) · Easier to wash sand using coil tubing (higher annular velocity) CORE LABORATORIES, I1~. Pase F~le ~ell ~ of 13 RFL- CA 87001 BC - iA h"fDROCARBON ANALYSIS OF GAS SAMPLE Component Mol Percent GPM Hydrogen Sulfide 0.00 Carbon Dioxide 0.10 Nitrogen 0.86 Methane 98.92 Ethane 0.12 0.032 Propane 0.00 0.000 iso-Butane 0.00 0.000 n-Butane 0.00 0.000 ~so-Pentane 0.00 0.000 n-Pentane 0.00 0.000 Hexanes 0.00 0.000 Heptanes plus 0.00 0.000 100.00 0.032 Calculated gas gravity (air - 1.000) - 0.559 Calculated gross heating value - 998 BTU per cubic foot of dry gas at 14.65 psia and 60°F. Collected at 1080 psig and 78°F. in the field. This ~ort, bised on abse~vattons and mter~ohsuDoIted by the c11eflt, *s prepared for the exclusive and c~ftdenttll use by the clleet, h o~alyses, O~lntofls, or Interpretations co~tain~d heretn t~resent the Judgea~nt of Core Laboratories, Inc.; hoover, Core Lid)oratories, I~c., and its mlploy~es ************SALAMA ET AL*******~-**** Pressure: 800. ps~a Temperature: 40. Deg F Oil AP! gravity: 0.00 Water gravity: 1.0000 Dissolved solids: 0.00 Gas gravity: 0.5600 %C02: 0.10 ~2: 0.86 %H2S: 0.00 Condensate-gas ratio: 0.000 Water-gas ratio: 10.000 Sand rate: 0.10 Tubing diameter: 2.992 Tolerable metal loss: 3.0 Water density: 62.8599 Gas density: 2.7519 Mix density: 2.9671 Erosional velocity: 117.8081 Oil rate: 0.0 Water rate: 318.9 Dry gas rate: 31.89 Wet gas rate: 31.89 bbl/mmcf dry bbl/mmcf dry lbs/day MPY lb/cult lb/cuft lb/cult ft/sec STBPD STBPD MMCFD MMCFD Surface Use Plan for Beaver Creek #10 Marathon Oil Co. -January 16, 1998 Surface location: Anticipated at 1144' FNL, 1510' FWL, Sec. 34, T7N, R10W, S.M. 1) Existing Roads Existing roads which will be used for access to Beaver Creek #10 are shown on Fig. 1. Kenai, Alaska is the nearest town to the site and is also shown on the map. 2) Access Roads to be Constructed or Reconstructed No new roads will be required to access Beaver Creek #10. 3) Location of existing wells The location of all existing wells in the Beaver Creek Field is shown on Fig. 2. 4) Location of existing and/or proposed facilities The locations of existing production facilities in the Beaver Creek Field are shown on Fig. 3. The only new facilities required for Beaver Creek #10 is the addition of a new flowline from the wellhead to a new T-Pak on Pad 3. 5) Location of Water Supply A water supply well exists on the pad that Beaver Creek #10 will be drilled from. This is shown on Fig. 3. 6) Construction Materials No construction is planned on the pad. If the pad requires minor leveling, the sand and gravel will be obtained from the approved gravel pit in the SW/4, NE/4, Sec. 5 T6N, R10W, S.M. Other materials will be obtained from various vendors and suppliers in Alaska. 7) Methods of handling waste disposal; a) Mud and Cuttings Cuttings will be dewatered on location. The excess mud will be hauled to the Kenai Gas Field for disposal into a Class II disposal well operated by Marathon. Cuttings will be hauled to Kenai Gas Field, where they will be washed and tested for contaminants. If the cuttings meet remediated site level C cleanup criteria they will be used for maintenance of pad 41-7 at Kenai Gas Field. If the cuttings do not meet this criteria, they will be ground and injected into a Class II disposal well operated by Marathon. b) Garbage All household and approved industrial garbage will be hauled to the Kenai Peninsula Borough Soldotna Landfill. c) Completion Fluids OABCIO~SURF USE.WPD -- Surface Use Plan Beaver Creek #10 Page 2 Exempt fluids (completion fluids and water recovered from drilling mud) will be injected into approved disposal well Beaver Creek # 2 (Alaska Oil and Gas Conservation Commission Disposal Injection Order No. 4) or hauled and injected into an approved Class II disposal well operated by Marathon. d) Chemicals Unused chemicals will be returned to the vendor which provided them. Efforts will be made to minimize the use of all chemicals. e) Sewage Sewage will be hauled to the Kenai sanitation facility. 8) Ancillary Facilities A minimal camp will be established on the pad to house various supervisory and service company personnel. Approximately four trailer house type structures will be required for this purpose. Bottled water will be used for human consumption. Potable water will be obtained from the existing water well on the pad. Sanitary wastes will be collected and disposed of by a qualified operator in an ADEC approved disposal facility. No airstrip or additional structures will be necessary. 9) Wellsite Layout An anticipated layout of the wellsite is shown on Fig 3. 10) Plans for reclamation of the surface Beaver Creek #10 will be drilled from an existing pad. Reclamation of the pad will occur after the abandonment of Beaver Creek #10 and the other existing wells on the pad. Approval of the plan of reclamation will be obtained from the U.S. Fish and Wildlife Service prior to any reclamation work beginning. 11) Surface ownership The surface owner of the land in the Beaver Creek Unit is the U.S. Fish and Wildlife Service. The minerals are under the jurisdiction of the U.S. Bureau of Land Management. 12) Other Vehicle parking areas, as well as other areas where equipment will be setup and operating will be lined with an impervious liner to prevent spills. O:XBCIO\SURF USE.WPD -- ,. VICINITY MAP SEC 34 T7N RIOW sM Drtll$1te. 0 8000 , I I SCALE IN FEET N / ~ ~/~- Bcu 6 PRODUCTION PAD // v PAD 3 BEAVER LAKE SEC. 33 SEC. 34 Marathon 011 Company q I/ PAD 2 PAD 7 PURPOSE: DRILL & COMPLETE PLAN VIEW PROPOSED LOCATION FOR BCU 9 BClJ 11) ON- PAD 3 0 1'000 2000 AT: BEAVER CREEK PRODUCTION ADJACENT PROPERTY ! ! FACILITY OWNERS SCALE IN FEET IN: PAD 3 KENAI PENINSULA BOUROUGH. AK. KENAI NATIONAL WILDLIFE REFUGE MARATHON OIL COMPANY- P.O. BOX 190168 APPLICATION BY: ANCHORAGE, AK. 99519 MARATHON OIL COMPANY DATE 10-8-92 FIGURE 2 N 2' DRISCO potable water line Water Well ,/ · BCU 10 Proposed --~6' crude oll pipeline 24'ACCEss 2' potable water line 6' (~U6 BCU 9 pipeline ~ )ipellne 8' Oas PiPeline ~' D.lSCO ,~ne / wasteweter / / T-PAN PURPOSE: DRILL & COMPLETE BCU 10 ADJACENT PROPERTY OWNERS KENAI NATIONAL WILDLIFE REFUGE PLAN VIEW 0 150 I SCALE IN FEET MARATHON OIL COMPANY P.O. BOX 190168 ANCHORAGE, AK. 99519 PROPOSED LOCATION FOR BCU 9 ON: PAD 3 IN: BEAVER CREEK PRODUCTION FACILITY KENAI PENINSULA BOUROUGH, AK. APPLICATION BY: MARATHON OIL COMPANY DATE 10-8-92 Figure 3 20 29 Unit Bound,~.... ! 21 T7N-R 28 10W BCU 8 _5300- "~~ 32 ! I I ! I I ! BCU 4, BCU 1 lA II I II I ..I 27 I I I,__! I I I Proposed BCU ! ~ ;D 5800' ! ! I I I I I I I I 23 26 35 11 STERUNG TYPE LOG BCU 9 SP RES. A -5000-- B3 BCU7 BCU1A ~ BCU6&5 BCU .(~. ! STERLING Top B4 · : :.-~ ,..~: . .,~.,~,.;~.;. . '6¥~.', ~.,,...., STERLING B4 STRUCTURE C.I. = 50' 0 1/2 I I MILE MARATHON OIL COMPANY ALASKAN PRODUCTION REGION BEAVER CREEK FIELD KENAI, ALASKA BCU 'fO ~ 99S $ TER£IN,2 NET V~RKING INTEREST = '100% August 1997 0 300 6OO 900 1200 !500 ..1.- ~ 2~0n ~- 2700 3000 3300 5600 3§00 42OO 4800 5!00 5400 5700 I V Creot,d ~y f~.~ For: GELLER] D~te plotted : 13-Jon-9~ Plot Re~erence ;s ~C-I 0 VERSION ~5. ESTIMATED RKB ELEVATION: !85.i' KOP IMARATHON Structure : Pod #3 Field : Beaver Creek Unit Oil Company1 Well: BC-10 [ LocoHon : Kenai Peninsula, Alaska EST. SURFACE LOCATION: 1144' FNL, 1510' FWL SEC..~4, T7N, RI OW WELL PROFILE DATA ..... P~'n[ .....M0 Inc Ha on 0.00 0.00 Begin Turn to Terget 21~.~ 6.~ ~d of ~ild~urn 3180.25 31.21 r~r~et ~C-10 l~t 27-F~ 5897.22 ~1.21 LO. & End of Hold 6100.C0 31.21 .5.91 7.20 9.3~ :I .80 ~. 14.49 DLS: 3.00 de9 per 100 f[ ~ 1 7.28 20.~5 23.01 25.92 28.85 EOC AVERAGE ANGLE 31.21 DEG BC- 10 Tgt 2 D~r TMD No~th East V. Sect Deg/I O0 0.00 O.0O 0.CO 0.CO 0.~ 0.~ ~.~ tg~.~ 0.~ O.~ O.~ go.~ 2~g.830.~ 10.46 -0.~ 3.00 186.705126.27 -2~.6~ 54.gl 282.!1 3.00 188.7054~.~0--I ~3.91 --12g.44 1688.~ o.~ 186.705623.~3 - I 7~8.27 -1~1.70~ 793.570.00 184.4 AZIMUTH 1689' (TO TARGET) ***Plone of Proposal*** TD i i i i i i i i i i i i i i i 0 300 600 900 1200 1500 1800 2100 Vertical Section (feet) -> ITAR GEV LOCATION: 2452' FSL,' 1381' FWL SEC. 54, T7N, R law TARGET TVD=5450 TM0=5897 OEP= 1 689 SOUTH 1 684 WEST 1 29 BC-IO Tgt 27-Feb-97 TD LOCATION: 2548' FSL, 1369' FWL TD ~ SEC. 54, T7N, R10W <- West (feet) 200 ~00 0 Begin Turn to Torget~ EOC ' :CC ~ c L L 100 F 20c F 300 F ~ 400 _ - 500 - 500 - 700 _ ~ 800 _ ~ SC0 -1000 _ ~ I:00 -'2CC -~300 - ~ ~400 _ - :500 -~600 F ~70C ? L 1800 Azimuth 184.40 with reference 0.00 N, 0.00 E from slot #10 ! P~ot .%~'e,e.~ce is aC-t(] VERNON #5. Field : Beaver Creek Unif Locaflan : Kenai Peninsula, Alaskal £mst (feet) -> 1 O0 80 60 40 20 0 20 40 60 80 1 O0 120 140 160 180 200 7300'~ 5 45- -5-0- -0-.~"~'~0 //___ 0 ~ \ x~ ........ .._ ~ /1,500 0 69oo ~. \ '-., .... -'-----Z' -i 6500~,~6100%~X 8500 ',,,,2,500 '",. 20 -, ~ 20 \ 2500 - ~r 4-0 I 2700 500 ~ CO 1,500 2900 180 2O0 1500 F 2~c i 240 260 ~ 26O ,5100 280- ~ 2~C 300. i F 52O 1 'I! I 320 ........... ................. 1 O0 gO 60 40 20 0 20 40 60 80 1 O0 120 140 160 180 200 Easf (feel) -> 100 i Q] 120 i ,-_.,,J ~ 140 d 0 I ~o~ 180 ! 200 ] 220 ! I o H ~20 F F ~4o -"" · r ~60 I V MARATHON Oil Company Pad #3 BC-10 slot #10 Beaver Creek Unit Kenai Peninsula, Alaska MINIMUM DISTANCE CLEARANCE by Baker Hughes INTEQ REPORT Your ref : BC-10 VERSION Our ref : prop2706 License : Date printed : 13-Jan-98 Date created : 29-Dec-97 Last revised : 13-Jan-98 Field is centred on n60 38 50.050,w150 59 49.92 Structure is centred on n60 38 50.050,w150 59 49.92 Slot location is n60 39 30.772,w151 i 5.555 Slot Grid coordinates are N 2434048.000, E 317329.000 Slot local coordinates are 4135.83 N 3769.70 W Projection type: alaska - Zone 4, Spheroid: Clarke - 1866 Reference North is True North Report is limited to clearances less than 500 feet DECREASING CLEARANCES of less than 1000 feet are indicated by an asterisk, e.g. 487.4* Object wellpath MSS <0-6395'>,,BC-3,Pad #3 GMS <Oo15844'>,,BC-6,Pad #3 GMS <8000-16247'>,,BC-5,Pad #3 Schlumberger <5943-8858'>,,BC-9,Pad #3 Closest approach with 3-D Minimum Distance method Last revised Distance M.D. Diverging from M.D. 5-Sep-92 50.5 1200.0 1200.0 5-Sep-92 33.2 500.0 500.0 5-Sep-92 58.3 2550.0 2550.0 14-Dec-94 69.3 0.0 5920.0 DIVERTER SCHEMATIC Beaver Creek #10 MARATHON OIL COMPANY 10' Remote Operated Valve 13-5/8" x 5M Annular Preventer Dlverter Spool ' (~ Flowline I 1 I 10° Remote Operated Valve g-5/8" SOW x 11" 3M 9-5/8" Conductor ' i ' 1.3 5/8" 5M HYDRILL ANNULAR PREVENTER FLC. 13 5/8' 5M SHAFFER DOUBLE CATE L__ t/t6' 5u x 3 t/8' 5H uuo CROSS x 2 9/16' 5M CHOKE Sl0J~ KILL 4 1/16' 5M HCR VALVE 9/16' 5M MANUAL VALVES ---J ~ ~ 13 5/8' 5M SHAFFER SINGLE CATE ~ ~/~' sa ~u~ J __j . I' '1 BOP STACK 6LEVATION 15-5/8" 5,000# SHAFFER EXHIBIT A SECTION I PROPOSED BOP STACK CONFIGURATION I~ATERIAL LIST ' ' DCSCRIPIION OTC UAHUAL OTC ~IU~ V~S OtC ~U~ V~S O~C ~U~ v~s O[C ~u~ v~s OZC ~u~ v~s OTC ~U~ OTC ~(AJ~U,q. VALVES 3' 5u OTC k~,~U,q, v,q.v[s 3" 5u O[C ~UAL. VALVES 4' 5a OTC ~ v~S 4' 5U OTC ~U~ v~S 5M ~ CHOKC SM ~U~ CH~E tO~ HYO~U~ CHOKE FROM STACK EXHIBIT A SECTION I CHOKE MANIFOLD DESIGN r. LARE FLARE 116'-6" ELECTRIC SHOP (8'-0" X 28'-0") (~..-0- x ~0'-0-)i ' ' ' SCR (8'-0' X WALKWAY ×~1 ~,1, (.,o_ I ~ / , 61 '-6" (~,"-0" X 20'-0") ~ I ~. io8 x ,~ STAIRS TO ' I I' I C)~b'l ~ I o I ~c~ DRILL FLOOR ' I ' I S~ x (,, ~ucs.) ~ (, ~cs.) /--- SHAKER TANK /(10'-0" X 9'-6" X 7'-0') 270 BBLS / /-- SHAKER TANK ~ /(lO'-O' x 9'-6' x 7'-o") J F- 1300 , ,i3~ uuo PuMP I I , '[~:~ MUD PUMP I j (2~'-0" x ~IwATER TANK 300 BELLS /'-- WATER TANK , /, 300 BBL$ I /- BOX ON B( 153'-0' 220'-0' ' PIPE RACK 1/8" 74,'-8 7/,8" END OF TUBULARS O£NER,N.. ISSUI~ DESCRIPTION ~IS ~ A PROPR~ETORY 0ESi4:aq OF NA~ORS ALASKA REPf~30uCTION OR L,~E OF 0E~ ~ P~m~lBt. E O~Y IF AUTHORIZED IN WRfllNG BY NASOR"S AL~.k Nobor~ AJcsko 0Hilincj inc. 2525 C Strut. Su;le 200 Anchoroge. Alosk~ 99503 907 -263-6000 Alaska F, ~ ..;L)d'mestic-_, , oduction Marathon Oil Company P.O. Box 196168 Anchorage, AK 99519-6168 Telephone 907/561-5311 January 27, 1998 Mr. Dave Johnston Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3192 Reference: Permit to Drill, Beaver Creek #10 Dear Mr. Johnston: Enclosed in triplicate is the application to drill the Beaver Creek #10 gas well in Beaver Creek Field. Marathon is proposing a 3%" tubingless completion for BC-10, which will require an exception to Title 20 AAC 25.200(d) rules. Under this proposal Marathon will cement 3%" tubing across the pay, which will simultaneously serve as tubing and production casing for the well. The incentive for such a completion is to eliminate the expense of a separate string of 7" casing. A tubingless style completion will not compromise the recovery of reserves. The attached analyses show there is no concern that corrosion or erosion'will shorten the life of the wellbore. If, however, the 3%" casing is unexpectedly damaged such that reserves from well BC-10 cannot be fully recovered, all reserves can be recovered from the nearby BC-9 wellbore. Please contact me at (907)564-6325 if you have any further questions. Sincerely, W. C. Barron Operations Superintendent O:~K;IO~OGCCPTD.WPD Enclosure RECEIVED J/M'~ 2_9 1998 Alaska 0ii & Gas Cons. C0mmissi011 Anchorage A subsidiary of USX Corporation Environmentally aware for the long run. Coastal Project Questionnaire and Certification Statement Please answer all questions. To avoid a delay in processing, please call the department if you answer "yes" to any of the questions related to that department. Maps and plan drawings must be included with your packet. APPLICANT INFORMATION 1. Marathon Oil Company Name of Applicant P. O. Box 196168 An incomplete packet will be returned. 2. W.C. Barron Agent (or responsible party if other than applicant) P. O. Box 196168 Address Address Anchorage Alaska 99519-6168 Anchorage c~y (907) 561-5311 State Zip Code City Daytime Phone (907) 564-6489 Fax Number (907) 564-6325 Daytime Phone (907) 564-6489 Fax Number Alaska 99519-6168 State Zip Code PROJECT INFORMATION 1. This activity is a'. [~new project [--']modification or addition to an existing project If a modification do you currently have any State, federal or local approvals related to this activity? ..................... NOTE: Approval means any form of authorization. If "yes", please list below: Approval Type Approval # Issuance Date Yes Expiration Date No 2. Has this project ever been reviewed by the State of Alaska per the ACMP? ....... Previous State I.D. Number: AK Previous Project Name: PROJECT DESCRIPTION 1. Attach the following: · a detailed description of the project and all associated facilities; · a project timeline for completion of all major activities in the proposal; · a site plan depicting all proposed actions; · other sul313ortincl documentation that would facilitate review of the project. Note: If the project is a modification, identify existing facilities as well as proposed activities on the site plan. Proposed starting date for project: 7/1/98 Proposed ending date for project: 7/30/98 Provide a brief description of your entire project and ALL associated facilities (access roads, caretaker facilities, waste disposal sites, etc.). Drill and complete well BC-10 as a directional development gas well in Beaver Creek Field on Pad #3. Please see attached. . Revised 11/95 Page 1 O:\BC10\CZMPRM.XLS PROJECT LOCATION~'' ~ 1. Attach a copy of the topographical map with the project location marked on it. . Location of project (include nearest community or name of the land feature or body of water. Identify township, range and section): Marathon's Beaver Creek Production Facility, Pad #3 Township 7N Range 1 OW Section 34 Ueddian Seward Latitude/Longitude 3. The project is on: r--~State Land* ~-~Federal Land ~---1Private Land ~--]Municipal Land *State land can be uplands, tidelands, or submerged lands to 3 miles offshore. See Question #1 in DNR section. . The project is located in which region (see attached map): ~-"]Northern [~]Southcentral E~Southeast ~] State Pipeline Coordinator's Office 5. Is the project located in a coastal district? ......... If yes, please contact the district representative listed on the attached sheet. Yes 6. Identify the communities closest to your project location: 12 miles north of Soldotna 9.5 miles northeast of Kenai, No FEDERAL APPROVALS 1. Is the proposed project on U.S. Forest Service (USFS) land or will you need to cross USFS lands for access? ................... Does the cost of the project exceed $250,000? ............ If yes, have you applied for a USFS permit or approval? ......... Date of submittal: Yes · .J--'} · .{--~ · . ~---~ No . Is the proposed project on-Bureau of Land Management (BL M) land or will you need to cross BLM lands for access? ..................... Does the cost of the project exceed $250,000? ................ If yes, have you applied for a BLM permit or approval? ............. Date of submittal: 16-Jan-98 Will you be constructing a bridge over tidal (ocean) waters, or navigable rivers, streams or lakes? ................... If yes, have you applied for a U.S. Coast Guard permit for a bridge? . . . Date of submittal: . Will you be dredging or placing structures or fills in any of the following: tidal (ocean)waters? streams? lakes? wetlands*? ........... If yes, have you applied for a U.S. Army Corps of Engineers (COE) permit? Date of submittal: (Note: Your application for this activity to the Corps of Engineers also serves as your application to DEC.) *lf you are not certain whether your proposed project is in a wetlands, contact the U.S. Corps of Engineers, Regulatory Branch at (907) 753-2720 for a wetlands determination (outside the Anchorage area call toll free 1-800-478-2712. Revised 11/95 Page 2 O:\BCIO\CZMPRM.XLS . . 7, . Have you applied for a U.S. Environmental Protection Agency National Pollution Discharge Elimination System (NPDES) permit? .......... Date of submittal: (Note: For information regarding the need for an NPDES permit, contact EPA at (907) 271-5083.) Yes Will you have a putrescible waste discharge within 5 miles of any public airport? ...... If yes, please contact the Airports Division of the Federal Aviation Administration at (907) 271-5440. No Does the project include a nonfederal power project affecting any navigable body of water or located on federal land? Or, is utilization of surplus water from any federal government dam proposed? ................... (Power projects consist of dams, water conduits, reservoirs, powerhouses, and transmission lines.) If yes, have you applied for a permit from the Federal Energy Regulatory Commission (FERC)? ...................... Date of submittal: (Note: For information, contact FERC, Off/ce of Hydropower Licensing, at (202) 208-0200.) Have you applied for permits from any other federal agency? Agency Approval Type Date Submitted Bureau of Land Management Permit to Drill 16-Jan-98 DEPARTMENT OF ENVIRONMENTAL CONSERVATION (DEC) APPROVALS . . Yes No Will a discharge of wastewater from industrial or commercial operations occur? ....... F'-'] E~ Will the discharge be connected to an already approved sewer system? ....... E~] ~ Will the project include a stormwater collection/discharge system? ......... ~ E~ Do you intend to construct, install, modify, or use any part of a wastewater (sewage or greywater)disposal system? ....................... ~ ~ a) If so, will the discharge be 500 gpd or greater? ................ [~] ~'~ b) If constructing a domestic wastewater treatment or disposal system, will the system be located within fill material requiring a COE permit? ........... [_.J L~J If you answered yes to a or b, answer the following: 1) How deep is the bottom of the system to the top of the subsurface water table? 2) How far is any part of the wastewater disposal system from the nearest surface water? 3) Is the surrounding area inundated with water at any time of the year? ..... ~J [_.J 4) How big is the fill area to be used for the absorption system? (Questions I & 2 will be used by DEC to determine whether separation distances are being met; Questions 3 & 4 relate to the required size of the fill if wetlands are involved.) Do you expect to request a mixing zone for your proposed project? ....... If your wastewater discharge will exceed Alaska water quality standards, you may apply for a mixing zone. If so, please contact DEC to discuss information required under 18 AAC 70.032.) Page 3 Revised 11/95 O:\BC10\CZMPRM.XLS . . . Do you plan to store or d~,ose of any type of solid waste resulting from t,.._ project? . . . (Note: Solid waste means drilling wastes, garbage, refuse, sludge, and other discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting from industrial, commercial, and agricultural operations and from community activities.) Yes Will your project require the application of oil, pesticides, and/or any other broadcast chemicals to the surface of the land and/or the waters of the state? ........... [-'-] a. Will you have a facility that will generate air emissions from processing greater than five tons per hour of material? ................. C~ b. Will you have one or more units of fuel burning equipment, including flaring, with a heat input rating of 50 million Btu per hour or more? ............ ~ c. Will you have a facility containing incinerators with a total charging capacity of 1.000 pounds per hour or more? ................. d. Will you incinerate sludge? ....................... e. Will you have any of the following processes: ................ ~ Asphalt plant r'-] Coal preparation facility [~ Petroleum refinery ~ Portland cement plant ~ Petroleum Contaminated Soils Cleanup Will your facility use the following equipment? [~ diesel internal combustion engines? Will your merit? (Total capacity equal to or greater than f, 750 kilowatts or total rated brake specific horsepower greater than 2350 bhp) r--] gas fired boilers (Total heat input rating of 100 million Btu per hour) [~] oil fired boilers (Total heat input rating of 65 million Btu - per hour) r-'] combustion turbines (total rated power output of 8,000 Hp) facility burn more than the following per year in stationary equip- 1,000,000 gallons of fuel oil [--'] 35,000 tons of coal 900 million cubic feet of natural gas If you have answered "yes" to any of the above questions (6 a-g), have you installed, replaced or modified any fuel burning or processing equipment since 19777 .... g. 7. Will you be developing, constructing, installing, or altering a public water system? Will your project involve the operation of waterborne tank vessels or oil barges that carry crude or non-crude oil as bulk cargo, or the transfer of oil or other petroleum products to or from such a vessel or a pipeline system? . . Will your project require or include onshore or offshore oil facilities with an effective aggregate storage capacity of greater than 5,000 barrels of crude oil or greater than 10,000 barrels of non-crude oil? ......... o a. No Page 4 Revised 11/95 O:\BC10\CZMPRM.XLS Co Will you be operati~.~ .acilities on the land or water for the explorati, .r pro- duction of hydrocarbons? ............... If you answered NO to ALI. questions in this section, continue to the next section. If you answered YES to ANY of these questions, contact the DEC Regional office for information and application forms. Please be advised that all new DEC permits and approvals require a 30-day public notice period. Yes Based on your discussion with DEC, please complete the following: Approval Type: Solid Waste Storage Date Submitted: 16-Jan-98 No 9. Does your project qualify for a general permit for wastewater or solid waste? ........ ~--~ 10. If you answered yes to any questions and are not applying for DEC permits, indicate reason below: ~ (DEC contact) told me on that no DEC approvals are required on this project. Reason: ~ Other: DEPARTMENT OF FISH & GAME (DFG) APPROVALS Will you be working in, or placing anything in, a stream, river or lake? (This includes work in running water or on ice, within the active flood plain, on islands, the face of the banks or the tidelands down to mean Iow tide.) (Note: If the proposed project is located within a Federal Emergency Management Agency Zone, a Floodplain Development Permit may be required. Contact the local municipal government for additional infor- marion and a floodplain determination.) . Name of [--']stream, r-]river, or [--'-~,ake: Yes No . Will you do any of the following? P/ease indicate below: [--] Build a dam, river training structure or ~--] instream impoundment? [--'] [~] Use the water? ~ ~ Pump water out of the stream or lake? ~ [-'-] Divert or alter the natural stream channel? ~ [--'] Block or dam the stream (temporarily or permanently)? Change the water flow or the water channel? [-~ Introduce silt, gravel, rock, petroleum ~ products, debris, chemicals, or other organic/inorganic waste of any type into the water? Alter or stabilize the banks? Mine or dig in the beds or banks? Use explosives? Build a bridge (including an ice bridge)? Use the stream as a road (even when frozen), or crossing the stream with tracked or wheeled vehicles, log- dragging or excavation equipment (back- hoes, bulldozers, etc.)? Install a culvert or other drainage structure? Construct a weir? Use an in-stream structure not mentioned here? 3. Is your project located in a designated State Game Refuge, Critical Habitat Area or State Sanctuary? .......................... [-"] Page 5 Revised 11/95 O:~BCIO\CZMPRM.XLS Does your project include th~ construction/operation of a salmon hatchery'; . . 5. Does your project affect, or is it related to, a previously permitted salmon hatchery? . Does your project include the construction of an aquatic farm? ...... if you answered "No" to ALL questions in this section, continue to next section. Yes if you answered '~fes" to ANY questions under 1-3, contact the Regional DFG Habitat Division Office for information and application forms. if you answered "Yes" to questions 4-6, contact the DFG at the CFMD division headquarters for information and application forms. Based on your discuss with DFG, please complete the following: Approval Type: Date Submitted: No . If you answered yes to any questions and are not applying for DFG. permits, indicate reason below: [~] (DFG contact) told me on that no DFG approvals are required. Reason: Other: DEPARTMENT OF NATURAL RESOURCES (DNR) APPROVALS 1. Is the proposed project on State-owned land or will you need to cross State-owned land for access? ("access" includes temporary access for construction purposes) Note: in addition to State-owned uplands, the State owns almost all land below the ordinary high water line of navigable streams, rivers and lakes, and below the mean high fide line seaward for three miles. . Do you plan to dredge or otherwise excavate/remove materials on State-owned land? Location of dredging site if other than the project site: Township Range Section Meridian Do you plan to place fill or dredged material on State-owned land? ....... Location of fill disposal site if other than the project site: Township Range Section Meddian Source is on: ['--']State Land [~Federal Land [---'~ Private Land r-~ Municipal Land . Do you plan to use any of the following State-owned resources: · · · Timber: Will you be harvesting timber? Amount: Materials such as rock, sand or gravel, peat, soil, overburden, etc.: Which material? Amount: Location of source: [~] Project site r~ Other, describe: Township Range Section Meridian o Are you planning to use or divert any fresh water? .... Amount (gallons per day): 10,000 gal/day Source: Existing water well Intended Use: Drilling mud maintenance Yes No Page 6 Revised 11/95 O:~IC10\CZMPRM.XLS . Will you be building or altering a dam? ............... 7. Do you plan to drill a geothermal well? ............... At any one site (regardless of land ownership), do you plan to do any of the following? Mine five or more acres over a year's time? Mine 50,000 cubic yards or more of materials (rock, sand or gravel, soil, peat, overburden, etc.) over a year's time? [~] Have a cumulative unreclaimed mined area of five or more acres? . If you plan to mine less than the acreage/amount stated above and have a cumulative unreclaimed mined area of less than five acres, do you intend to file a voluntary recla- mation plan for approval? ................... 9. Will you be exploring for extracting coal? 10. Will you be drilling for oil/gas? · · · · · · · · · · · · · · · · · · · 11. Will you be investigating or removing historical or archaeological resources on State- owned land? ......................... 12. Is the proposed project located within a known geophysical hazard area? .... 13. Is the proposed project located in a unit of the Alaska State Park System? . . . If you answered "No" to ALL questions in this section, continue to certification statement. If you answered "Yes" to ANY questions in this section, contact DNR for Information. Based on your discussion with DNR, please complete the following: Approval Type: Temporary Water Use Date Submitted: Permit to Drill Yes 16-Jan-98 16-Jan-98 14. If you answered yes to any questions and are not applying for DNR permits, indicate reason below: r-I (DNR contact) told me on that no DNR approvals are required. Reason: r~ other: Please be advised that the CPQ identifies permits subject to a consistency review. You may need additional permits from other agencies or local governments to proceed with your activity. No Revised 11/95 Page 7 O:~C10\CZM PR M.XLS Certification Statement The information contained herein is true and complete to the best of my knowledge. I certify that the proposed activity complies with, and will be conducted in a manner consistent with, the Alaska Coastal Management Program. ~ signature of Applicant or Agent Date Note: Federal agencies conducting an activity that will affect the coastal zone are required to submit a federal consistency determination, per 15 CFR 930, Subpart C, rather than this certification statement. This certification statement will not be complete until all required State and federal authorization requests have been submitted to the appropriate agencies. To complete your packet, please attach your State permit applications and copies of your federal permit applications to this questionnaire. Revised 11/95 Page 8 O:~;;10\CZMPRM.XLS 8101997 OPERATOR P.O. Box 196168 0 l?m-1. ANCHORAGE ;100.00 CITY STATE OR NON-REPORTING 100% REPORTABLE INTEREST IF REPORTABLE RENTS INDICATE SERVICES TYPE OF NON-EMPLOYEE COMP. PAYMENT PRIZES, AWARDS, OR DAMAGES Filing Fee for Permit to Drill - Beaver Creek #10 · WELL PERMIT CHECKLIST WELL NAME FIELD&POOL <~0,~.2..,~" INIT CLASS,--"~'z""' .//~/,,~'~'"'~-~ GEOLAREA . ADMINISTRATION APPR PROGRAM: exp [] dev~'edrll [] serv [] wellbore seg [] ann. disposal para req [] _~.2_,-? UNIT# ' ,~O ~,/~ ON/OFF SHORE ('3~f_J REMARKS 2. Lease number appropriate ................... 3. Unique well name and number .................. ~ i ,' 4. Well located in a defined Pool ................. .~ ~ / r ~ 5. Well located proper distance from drilling unit boundary .... JL.~ N . . ~,,-,~_ /-~,,,,-~..,.,/"¢_.~4p/1 6. Well located proper distance from other wells .......... 7. Sufficient acreage available in drilling unit ............ N 8. If deviated, is wellbore plat included ............... N 9. Operator only affected party. . ~y~N 10. Operator has appropriate bond in force ............. N ...... - - ' ' 11. Permit can be issued without conservation order ........ N 12. Permit can be issued without administrative approval ...... N 13. Can permit be approved before 15-day wait ........... )N ENGINEERING GEOLOGY AP, PR DAq'_ E/ 14. Conductor string provided ................... ~ N 15. Surface caSing protects all known USDWs ........... ~ N .,,_.. ~ . 17. CMT vol adequate to tieqn long string to surf csg... ~ .... 18. CMT will cover all known productive horizons .......... (~NN 19. Casing designs adequate for C, T, B & permafrost ....... ¢...¢-~,¢,~ _ 20. Adequate tankage or reserve pit ................. ~NN/Ij' ~,~.~__.~ 21. If a re-drill, has a 10-403 for abandonment been approved... 22. Adequate wellbore separation proposed ............. (~::) NN ~ g,/ -- 23. If diverter required, does it meet regulations .......... 24. Drilling fluid program schematic & equip list adequate ..... 25. BOPEs, do they meet regulation ................ ~ N 26. DOPE press rating appropriate; test to '~.,~ psig. N 27. Choke manifold complies w/APl RP-53 (M~y'"84) ........ 28. Work will occur without operation shutdown ........... 29. Is presence of H2S gas probable ................. Y 30. Permit can be issued w/o hydrogen sulfide measures ..... Y N/.,~.,~ 31. Data presented on potential overpressure zones ....... Y,,,,N" 32. Seismic analys~s of shallow gas zones ............. ,/'¢ N '~' 33. Seabed condition survey (if off-shore) ............ // Y N 34. Contact name/phone for weekly.progress reports ..... / . Y N lexp~ora~ory only] / GEOLOGY: ENGINEERING: COMMISSION' Comments/Instructions: RP~ BEW.~ ~r~ DWJ JDH ~ RNC.. / co co HOWlljt -A:\FORMS\cheklist rev 09/97