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203-074
~~~ ~ STATE OF ALASKA ~ ~~~a~ ALASKf~OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG ~~`~ 1a. Well Status: Oil ~ Gas~ Plugged ~ Abandoned Q~ Suspended ~ 20AAC25.105 2oa~czs.~~o GINJ ^ WINJ ^ WDSPL ^ WAG ^ Other^ No. of Completions: 1b. Well Class: Development ^ Exploratory^ Service 0~ Stratigraphic Test^ 2. Operator Name: Union Oil Company of California 5. Date Comp., Susp., or Aband.: 6/3/2009 12. Permit to Drill Number: ~ 203-074 .• 3. Address: PO Box 196247, Anchorage, AK 99519 6. Date Spudded: 5/16/2003 13. API Number: 50-133-20523-00 ' 4a. Location of Well (Governmental Section): SurFace: 1754' FNL, 4030' FEL, Sec. 27, T8N, R9W, SM 7. Date TD Reached: 6/6/2003 14. Wetl Name and Number: Swanson River KGSF #3 " Top of Productive Horizon: 1701' FNL, 4047' FEL, Sea 27, T8N, R9W, SM 8. KB (ft above MSL): 191' ~ Ground (ft MSL): 15. Field/Pool(s): Swanson River - Total Depth: 2133' FNL, 4445' FEL, Sec. 27, T8N, R9W, SM 9. Plug Back Depth(MD+ND): Surface Tyonek Gas Storage' 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 348982.39 y- 2469944.76 Zone- 4 10. Total Depth (MD + ND): 7,920'MD (6,253'ND) - 16. Property Designation: ~FEDA028406 [Kenai Gas Storage Facility] TPI: x- 348965.39 y- 2469997.76 Zone- 4 Total Depth: x- 348567.26 y- 2469997.76 Zone- 4 11. SSSV Depth (MD + TVD): N/A 17. Land Use Permit: N/A 18. Directional Survey: Yes ~ No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (ND): N/A 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): N/A 22. CASING, LINER AND CEMENTING RECORD CASING Wf. PER GRADE SETTING DEPTH MD SETTING D EPTH ND HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM pULLED 13-3/8" 68# K-55 Surface 65' Surface 65' N/A Driven 9-5/8" 53.5# L-80 Surface 2,060' Surface 1,995' 12-1/4" 93bb1 13.Oppg & 18bb1 15.8ppg class G ~„ 29# P-110 & L-80 Surface ~ 263, Surface 6,245' g_~/2~~ 170bb1 12.8ppg & 48bbi 15.Sppg class G 3-1/2" 9.2# L-80 2,514' 7,906' 2,411' 6,252' 8/1/2" N/A 23. Open to production or injection? Yes ~ No ~ If Yes, list each 24. TUBING RECORD interval open (MD+ND of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) N/A N/A N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. ~~~ j~~~~~~f ~~~~~~ DEPTH INTERVAL (MD) AMOUNT IND OF MATERIAL USED ~~ ~,:. ~ N/A ,. «~ ,. ~ !J s 26. PRODUCTION TEST ~ ~ Date First Production: Abandoned well Method of Operation (Flowing, gas lift, etc.): ' ~~'~`~ ,,;~ <~ti N/A ~n~hQra~B Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate -- Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^~ Sidewall Cores Acquired? Yes ^ No ^~ If Yes to either question, list formations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. .~,,, { a 39.3$+1 . ;,. P~~- a~o ta~. as ~~~ac.~~,.,~~~~ ~~ S Q~~.~ ~c,,~~:~.~~ s~~ ~ __ ~ ~:` ~ ~~~. ~~ ~u ~} ~ ~~os ~ ~ ~ Form 10-407 Revised 2/2007 CONTINUED ON REVERSE ~ ~~ . 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Formation at total depth: 30. List of Attachments: Current Schematic, Operations Summary 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Jack Newell 263-7832 Printed Na~ Timothy C. Brandenburg Title: Drilling Manager ~ Signature: • Phone: 276-7600 Date: 6/5/2009 INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Sait Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intenrals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and anatytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 ~Chevron ~ Chevron - Alaska ~ Daily Operations Summary Well Name Legal Well Name Lease Surface UVN ChevNo Original RKB (ft) Water Depth (R) KGSF #3 SWANSON RIVER KGSF 3 FEDA028406 5013320523 HK7458 191.00 : ~d~f,~` ~ 't- , 4;,~ u .,z ~.~ ~' h : ~ '~ ~('~`az^~ x . ^~i ~ 2 Y .€ • ~_,~ ,~,i,.~ s~;`~. Primary Job Type Job Category Objective Actual Start Date Actual End Date Abandon Well - Permanent Abandon Phase 2& 3 of permanent abandonment of well. 11/1/2008 12/24/2008 Primary Wellbore Affected Wellbore UWI We~l Permit Number KGSF #3 5013320523-00 2030740 8(. '.00:04 ~~ ~ ~ 't'"~ ~ ~~°'~ ' f Operations Summary PJSM - Shoot pad grade and measure cellar depths. a/~{~~V~ QViY. Rf ~ ~,`1r ~~a'{Y.~ ~U4 . ~ Operations Summary PJSM - Cut wellhead off 66" below average natural pad grade. --- 13 3/8' x 9 5/8" annulus cement tagged 17' 9" below cutoff. . , ~. ., ~ . . ~ ~~ ~.. ~ ~~~ x ~, , ~ ~~i~~~- staooa ao ~a~~ ~ ~„~ ~, _~~.. Operalions Summary ~ PJSM - Using Class G, Cement 9 5/8" x 13 3/8" annulus to surface - Weld on marker plate - Marker plate and cement witnessed by Lou Grimaldi - AOGCC ry'~~~t109 OO~y~ =?.~112/2008 Qtt:QO . ?. -~. ., ~$ _ ~.. f ~ ~ ,~ : j~X.e ~~`"_'_` ~~.::~~ ~~:-~ PJSM - Prep ceilar for removal „~ ~~128/20Q9 Q0:4~~- $/30/240~ OO:QO ~ ~ ~~ ~ . =.r.; ~ v ~ ~ . ~.~, ~ .r.~,~ ~: ~ ~ ° "a.~ r ~ i t „~. ~ ~'"~ ~~~. Operations Summary PJSM - Cut off mouse hole, fill in with Portland G cement, weld on cap marker plate - back fill excavated cellar hole. srar~o~.ao~a~,~ ~ar~o~~ oa:oo ~ ~ ~ ~ ,>>. ~ ~, . _{ ~ ~ ~ ~~~ ~„ ~~~ Operations Summary PJSM - Excavate well and replace marker plate - Clean area per plan - Last Report . , ~ • ~~ r- - ~ ~ "~ ,~ : : ~ `~' - ~ t , , ~ k ~,. ~ . , ~ ~. ~' ... _ i~ ~' , r f~, t~~',r ~¢'~ r"~ ~' ; - ~;-!~Sr ~~ l • . ~ • `u''Y ~ '` 4 ~'~ , . i ~.' ~f ~Ysr-~~, ~ ~,,~~ ~.. ~ "; ~ ~.~~,,,,` ~ .~ _ ;: . . . .~ ~ ~° " y ~- ~'~ ~ ~ ... 1 ~ ry~~ y '< < > 3 ' . -K t' ~ . Y '~. ~l~~~j~ l~.£ 'i~ ` ~'L.,,.~i ~ .'^,3 ~$-s ~ !~ k. . . ~: _~ ~~ f' ._~ ~ . ~~~ . '~ .ii~~ ~: '~' .~~. ,,, . ~-- F . ' . . ~~~~~}i '.~ ; . ... - . . . ,~' ." i~ ~ ~. :,., ', }. ~ ,. ,.: ~ . ~ ~ ~" . . , ~ ~,c ~~-~ , *~ -.~k, .a . . . , ~ fi ~~d' ~ ~~ ~. ... ~ «.. - ~ . ~ -. . . '...L ~~+~ LL _~ ~ ~ V \°t~' R 4 , .: ~ . ~ ,. : ~vMF~..^ ~. ~ '. _ ~ i 4~/. , ~ ~ :« ~ - ~ . . 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Ih ~ ,~ '~ ~:;+~, ~ -. ,a~:"' ~ • t,. ;+ y„~,~ - + ,t ~,.~i, ._~~ +~ ,~ 5 = -,~~! ~ " .~1~'°tEr e , t~~~~ ~.s. _ '; ~; *'~r •_,_ .- ~~"--k +-'. 1: :. t ~ ~ ~ ~ - l~ ~ :~ ~ s Y~Y ~ - ~i :~ t.1 i }ia~ Y ~~ ~ ~ RT•TTiF: 119 KB -~-~7 I ~ss~e~ ~ ss sara~~ ~ ~ s,osa eP ~ 2i ~a Jet Cut @ 2514' iydraulic s~ ~ acker (c~ +/- 5( nclinatan for Hireline aocess ; T BP @ -~~' - ezonn vA Poppet v~~e ~ ~~e~ r ~5~~ roc @5560' MD! 5211' VD (fmm temperaWre lo9) 2 , A ~ Top of 62-5 Sand ~ 716T MD / 6236' VD 7"~7,26T _- _r B . . ` C 8'/:" hole TC 4 D ~ 7326' MD 6246' VD E F ~~ ..ji a ; ~ 3-0/7'~7,906' v-"°`.'",,,~ TD =7,920' ND = 6,253' ca~9«, H InFrbiror `. Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID 13-3/8" Structural 68#, K-55 Surface 65' 12.415" 9-5/8" Surface 53.5#, L-80 Surface 2,060' BTC/ 8.535" 7" Surface 29#, P-110 & L-80 Surface 7,263' TKC/ 6.184" Tubing 2,514' 7,363' IBTC SCC/ 2.992" 3-1/2" Production 9.2#, L-80 7,363' 7,906' IBTC SCC/ 2.992" SS WW Screen Upper Area Detail # Depth Item 1• 2,038' HES 7" EZDrill w/Poppet Valve 2_ 6,203' 7" x 3'/z' SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3~ 6,243' 3 1/2" 'XN' nipple (min. ID = 2.75") 4• 7,347' 3'/z" PerF sub (to circulate cement) Productive Zone Abandonment Detail A~ 6,281' Cement top on retainer (tagged 8/22/07) B• 7,284' Cement Retainer w/ poppet valve ~. 7,294'-7,299' Abandonment Cement Squeezed Below Retainer D• 7,308' Cement Retainer (left in hole) E~ 7,318'-7,323' Squeeze holes F• 7,339' Coil BHA Fish (8') G_ 7,347' Tag Hard Fill H• 1685' TOC @ 1685' Pumped 45 BBI's 15.8 PPG Class G Cement I~ Surface TOC @ Surface, Pumped 35 BBI's 15.8 PPG Class G Cement J~ AGL Tree To Be Cut Off Summer 2009 "3' Below Natural Ground Level" KGSF#3 As-built Well Schematic 12-01-08.doc Uqdated bv JRN F~EC~~1~'~ ~-~~^ ~ STATE OF ALASKA ALAS OIL AND GAS CONSERVATION COMMISS~ E WELL COMPLETION OR RECOMPLETION REPORT ~~ L~ ~~~4 1 a. Well Status: Oil ~ Gas ~ Plugged Q Abandoned ~ Suspended Q, 20AAC 25.105 20AAC 25.110 GINJ^ WINJ^ WDSPL^ WAG^ Other^ No.ofCompletions: I ~ ~~ as Cons, ~;omr~sio Development {;hc~ Exp loratory Service Q n~t~atag~aphicTest^ 2. Operator Name: Union Oil Company of California 5. Date Comp., Susp., or Aband.: 12/1/2008 12. Permit to Drill Number: 203-074 3. Address: PO Box 196247, Anchorage, AK 99519 6. Date Spudded: 5/16/2003 13. API Number: 50-733-20523-00 4a. Location of Well (Governmental Section): Surface: 1754' FNL, 4030' FEL, Sec. 27, T8N, R9W, SM 7. Date TD Reached: 6/6/2003 14. Well Name and Number: Swanson River KGSF #3 Top of Productive Horizon: 1701' FNL, 4047' FEL, Sec. 27, TSN, R9W, SM 8. KB (ft above MSL): 191' Ground (ft MSL): 15. Field/Pool(s): Swanson River Total Depth: 2133' FNL, 4445' FEL, Sec. 27, T8N, R9W, SM 9. Plug Back Depth(MD+TVD): Surface Tyonek Gas Storage 4b. Location of Well (State Base Plane Coordinates, NAD 27): Surface: x- 348982.39 y- 2469944.76 Zone- 4 10. Total Depth (MD + TVD): 7,920'MD (6,253'TVD) 16. Property Designation: FEDA028406 [Kenai Gas Storage Facility] TPI: x- 348965.39 y- 2469997.76 Zone- 4 Total Depth: x- 348567.26 y- 2469997.76 Zone- 4 11. SSSV Depth (MD + ND): N/A 17. Land Use Permit: N/A 18. Directional Survey: Yes 0 No ~ (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (ND): N/A 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): LWD Gamma Ray, Quad Combo (GR, Res, Density, Neutron, Sonic), FMI, Mudlogs (Formation Log LWD/Combo Log, Gas Ratio Log, Drilling Dynamics) 22. CASING, L INER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE CEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM pULLED 13-3/8" 68# K-55 Surface 65' Surface 65' N/A Driven 9-5/8" 53.5# L-80 Surface 2,060' SurFace 1,995' 12-1/4" 93bb1 13.Oppg & 18bb1 15.8ppg class G ~„ 29# P-110 & L-80 SurFace ~ 263, SurFace 6,245' g_~/2~~ 170bb1 12.8ppg & 48bb1 15.8ppg class G 3-1/2" 9.2# L-80 2,514' 7,906' 2,411' 6,252' 8/1/2" N/A 23. Open to production or injection? Yes ~ No Q If Yes, list each 24. TUBING RECORD interval open (MD+7~/D of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) ~ N/A N/A N/A 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED N/A N/A 26. PRODUCTION TEST Date First Production: Abandoned well Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate -~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity - API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No 0 Sidewall Cores Acquired? Yes ^ No ~ If Yes to either question, list formations and intervals cored (MD+TVD of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. ~2'~~~ ~ C~~ .~ ~ ~~~ V~~~\ ~j ` ~j ~ 1 p ~Y C~t`^~'~- ~G~Gt~C~ ~ S l?~pp~`l~ ~. .~~~ ~t~ ' ~ ~ `.;~ ~a-~°~ ~ 2 ~~~~ Form 10-407 Revised 2/2007 CONTINUED ON REVERSE 1~ ~ CJ 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD ND Well tested? Yes ~ No If yes, list intervals and formations tested, briefly summarizing test results. Attach separate sheets to this form, if Permafrost - Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost - Base Formation at total depth: 30. List of Attachments: Current Schematic, Operations Summary 31. I hereby certiy that the foregoing is true and correct to the best of my knowledge. Contact: Jack Newell 263-7832 Printed Name: Timothy C. Brandenburg Title: Drilling Manager Signature: Phone: 276-7600 Date: 1/7/2009 /~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1 a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for 1 njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 @VPO Swanson River Uriit Swanson River Unit KGSF# Well KGSF#3 As-Abandoned Last Completed 12-1-08 RT-iHF: 179 KB A ~ ~ , . 1 13S/8" ,. ~ ss . ..:.:;<.-. - ~ ' , r.' BP @ -520' Corrosan H InhibiMr 9L/S~~ ~Z~a'a . ~ E2Drill w/ Pcppel : va~~e @ ~ p~' BP @ 21 74 . ,~`~r. ~e~ c~c @ zsia~ r casirg roc ~5560 MD/ 5211' VD (from emperahrre lo9) iydraulic set ~acker @ +/- 50°.~ ~ G 2 nclination for %, +Yreline aocess ._ _. t±, 3 ~ Y A • r" Top of 62-5 'Sand(d 716T MD / 6236' VD 7"~7~167 ~ Q '. a i, hde TC 4 ~ (d17326' MD s2as~ w E F ~r G ..y,.~, .1. ` j•_;: !.;:i '~~ .,s3' Y A` • ''YV. a. 3-7/Z' ~ 7,906' TD =7,920' ND = 6,253' Casing and Tubing Detail Size Type WU Grade Top Btm CONN/ID 13-3/8" Structural 68#, K-55 Surface 65' 12.415" 9-5/8" Surface 53.5#, L-80 Surface 2,060' BTC/ 8.535" 7" Surface 29#, P-110 & L-80 Surface 7,263' TKC/ 6.184" Tubing 2,514' 7,363' IBTC SCC/ 2.992" 3-1/2" Production 9.2#, L-80 7,363' 7,906' IBTC SCC/ 2.992" SS WW Screen Upper Area Detail # Depth Item t. 2,038' HES 7" EZDrill w/Poppet Valve 2. 6,203' 7" x 3'/z" SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3. 6,243' 3 1/2"'XN' nipple (min. ID = 2.75") 4. 7,347' 3'/z" Perf sub (to circulate cement) Productive Zone Abandonment Detail A• 6,281' Cement top on retainer (tagged 8/22/07) B• 7,284' Cement Retainer w/ poppet valve C. 7,294'-7,299' Abandonment Cement Squeezed Below Retainer D. 7,308' Cement Retainer (left in hole) E. 7,318'-7,323' Squeeze holes F. 7,339' Coil BHA Fish (8') G. 7,347' Tag Hard Fill H~ 1685' TOC @ 1685' Pumped 45 BBI's 15.8 PPG Class G Cement -~ Surface TOC @ Surface, Pumped 35 BBI's 15.8 PPG Class G Cement ~. AGL Tree To Be Cut Off Summer 2009 "3' Below Natural Ground Level" KGSF#3 As-built Well Schematic 12-01-08.doc Uadated by JRN . ~ ~Chevron ~ Chevron - Alaska ~ Daily Operations Summary Well Name Legal Well Name Lease Surface UWI ChevNO Original RKB (ft) Water Depth (fl) KGSF #3 SWANSON RIVER KGSF 3 FEDA028406 5013320523 HK7458 191.00 Well - Permanent ~Abandon ~ Phase 2& 3 of permanent abandonment of well. ~ 11/1/2008 KGSF #3 I 5013320523-00 12030740 Past days pertormed testing for Tom Maunder, AOGCC as follows for Sundry pre-approval as follows: 7" Production casing to 1500 psig for 3 hours Good Test (note used diesel & annulus took 51 gallons to pressure up). Pressure test phase one abandonment plug at 6281' for second time to 2530 psig with diesel and pressure held for 3 hours. Note tbg took 17 gallons of diesel to pressure up. Bleed both 3 1/2" Tbg and 7" casing to zero psig. Put dual pen Barton Recorder on well to record low pressure test. Pressure has been 0 psig for last 6 days. CuRently 3 1/2" tbg is zero psig with a diesel cap, 7" csg is zero psig with a diesel cap & 9 5/8" csg is zero with no fluid at surface. Preparing location for upcoming operations. PJSM and PTW for production Peak hands working the KGSF # 3 wellhead work. ~;,1/2" tubina is "0" PSI w/ diesel c?o. 7" casina is "0" PSI w/ diesel cap, g;,5/8" r.acing ic ^0^ PSI no Fl~id at ~rfa .~. Received 10.8 PPG brine for kill weight fluid on location. - Continue to monitor well as preparing for abandonment. Pressures remain at "0" PSI on tubing and casing(s). ~ ~ ~ ~"~1~t~~~~hA'R~tln•an°` ~, ~Mf,~:~~~~+~~,u,. ~~ ,~.~ t,~~ : ~ ~~~ ~x E „ _ . ~t~~~. ~ ~ '?~:n PJSM - Monitor well past two days - Off load truck and spot equipment for work over - 3-1/2" Tubing "0" psi, 7" Casing "0" PSI, 9-5/8" casing is "0" PSI with no fluid at surface. 11113t2Q08 00:00 - t'1/1412008A0:00 + " '`~ ~ ~~~. 4.:_ ° ,~,w. ° . ~~.- .~ .3$ PJSM - Simops with drillling and production on upcoming work - Contiue with RU of location for well work over - Work with other operators on radio traffic during upcoming tubing punches. PJSM - JSA with hands that wiil be working this well - Put 7" tree together that will be used once 3-1/2" tubing is POH - Haul same to pad - 3-1/2" tubing "0" PSI, 7" Casing "0" PSI, 9-5/8" casing is"0" PSI with no fluid at surtace. PJSM - RU hardline to circulate welibore over to 10.1 PPG CaCI w/ Oxygon .1 ppb, X-Cide 207 .01 ppb - RIH w/ 12' x 1/9/16" tubing punch gun - Tie-in CD 6151'. fire aun. all fired - RD E-line - SDFN 1111'~~1~~b0.dt~,~~9%1~ECtl~~ '~ ~~$ ~;.xs! ~ ~~.,~:F , x.'`r." „.1 ~.~~ ~ ~~;s~~r.. rx . ~a.. PJSM - Line up to circulate well long way over to 10.1 PPG CaCI brine w/ .1 ppb oxygen scavenger and .01 ppb biocide - Pumped job @ 2.5 bpm displacing fluid to slop tank - John Criso. AOGCC waived witness of casina test t/ 2130 PSI - charted for one hour with no oressure lass - RD pumping equipment - Put on 24 chart to record pressures through night - Contacted Mr Jim Regg, AOGCC, waived witness for tomorrows tubing cut and pressure test - SDFN PJSM - RIH, Tie in to tubing tally -.let cut tubina CcD 2514'. had aood indication of tubinq cut,- POH w/ E-line - Chart recorded pressure test 7" tubing for intearitv to 2000 PSI - OK - RD E-line - SDFN ~~taazaos oa:ou - ~~~ oo~<u~~n ~ , <, . _: a ~_, ~,s• ~ w ,., ~:w: Operations Summary PJSM - Spot and RU 65T Crane, well work equipment - ND 3-1/8" 5M well head - RU, Pull tubing hanger - Hanger off seat @/ 19K - Pull 3-1/2" IBT tubin~ and LD with crane - RD crane and equipment - NU workover valve and flange - SDFN 11121l2048 Q~i1~„~:~1/22I2008 OO:OQ ~ , ~ n~~ . ~ ~~ ~`~Y ~,z ~ ~,... ` ~„ ' „- Opera6ons Summary PJSM - Ship off location equipment and materials used for tubing pull - SDFN ~.. ~: ~~ 11t~f~t~~t10;Q~:~:^i1t2~~ " 1~. ~~ ~ x~~~~ ~ ~ ° OperaGons Summary PJSM - RU E-line. IH U 2174' and set BP - POH E-ine - PU 6' x 1-9/16" tubing punch assembly, RIH U 2165', fire tubinq puch, all shots fired - Pump 335 bbl's 10 PPG CaCI brine down 7-5/8" casing and up 7" x 9-5/S" annulus - Circulation rate 3.5 BPM @ 525 PSI - SDFN PJSM - RU E-line, PLl HFS 7^ F7ri11 ~,~,net valve nackar_ IH _ nac.kar set Qf~, POH e-line unit, RD - Line up and pump 6 BBI's Mud push/ Gel Spacer, 45 bbl's 15.8 PPG Class G cement, ~ bbl's mud push, pumped 57 bb~'s 10 PPG brine dispalcement - pump pressure 600 PSI to 700 PSI throughout job. - PJSM - RU slickline, RIH t?a cement Cc~ 1685 WLM - Press~re tect 7" casinq to 2noo PSI w/ 10 PPG 8uid, OK - RIH w/ 7" Cavins aluq, set (il 520' WLM - RD slickline and E-line - SDFN ~ ~ ~Chevron ~ Chevron - Alaska ~ Daily Operations Summary KGSF #3 SWANSON RIVER KGSF 3 FEDA028406 5013320523 HK7458 191.00 t. n,,,.. <.~ ~ ~ kr>~ , _ .~ ~r ~ _ , ~ ~~~ z~ ~ t~ .~ ,s~~ ~?. ~ ~, -flus ~ k~.~ . ~~~~. ~' .t., ~~ _ ~9: ~,~ ~~~ ~}1f26/20b~'p {~' -11F 7 `Q08 OO:OQ ' ~'`t~ ~, r; : ' Operations Summary PJSM - RU E-line, PU 6' x 1-9/16" tubing punch gun - RIH t/ 497'-505' - Punch tubin all shots fired - POH RD E-line - SDFN ~~~as~aaaeoo.oo:x~"dt~oo `~ ~,~4~~z.~~.>~<t,. r ~x~£ ,~:;i' i Operatlons Summary PJSM - PT lines U 4000 PSI - Break circulation down 7" and back up 7' x 9-5/8" annulus - Batch 37 bbls Class G cement - Py.mr ~~rfa~R ~fl„(q~ 4 BPM - Cement in retums 30 bbls awa - Had 15.8 PPG returns 35 bbls away - SD cementers, clean up equipment and well head. 1iC~ Qi~~'i~~:00 -.12/112008 00~0 .~~.:; rt r ~_. ~. • ~~ ~ ~.~< z ~. Operetions Summary ~ ~~ ~ ~ f ~~ ,~ PJSM - Pull 7-1/16" 5M x4-1/2" Otis lubricator flange - PUII 7-1/16 5M valve, pull 7" 5M mud cross AND dsa - NSTALL ORIGINAL cwBONNET, dsa AND 3-1/8" 5M valve for short tree - Clean up location and demob equipment. 12l1/2008 Q0 dQ "~ 12/21~ ~: ~ :00 ~, ~.k~~;,.s;., ~ ~~. .~ } ~. x=," Operations Summary . ~ .. ~ .~~ , ~ ..~.. ~ ~. .~ . . ~ ~ . ~''. i PJSM - Continue to clean up location - Last report for this portion of operation - planned cut off of casing(s) summer 2009. I KGSF 3: Sundry: 308-347 • Page 1 of,~ ^ • ~ Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, December 1$, 2008 3:12 PM To: 'Newell, Jack R [FEP]' Cc: Saitmarsh, Arthur C(DOA); Bonnett, Nigel (Nigel.Bonnettj Subject: RE: KGSF 3(203-074) : Sundry: 308-347 Jack, Foltowing up on what was able to be accomplished on KGSF #3, it is acknowledged that the cutoff will have to wait until late spring. You submitted a sundry received December 5 that transmitted the operations reports and requested approval for the ultimate cutoff. The original sundry gave you that approval and a new sundry is not needed. However, since the cutoff is delayed the well meets the regulatory definition of suspended. So a 407 should be filed reflecting that. It is only necessary to submit the 407 sheet since the attachments you sent in December 5 can be added. Looking ahead to the spring, please plan to notify us by email when the final work will be accomplished. It is desired to have an Inspector present to witness the cutoff. Call or message with any questions. Tom Maunder, PE AOGCC From: Newell, Jack R [FEP] [mailta:]Newell@chevron.com] Sent: Monday, November 24, 2008 3:00 PM To: Maunder, Thomas E (DOA) Subject: KGSF 3: Sundry: 308-347 Mr. Tom Maunder, Per our conversation this AM, The soils at the KGSF 3 location of become frozen to a depth that could make cutting off the tree and removing the cellar unsafe for personnel. We would like to defer this phase of the abandonment until late spring 2009. The well will be left with cement in all strings to surface. Jack ~ Newell • • , ~. ; ~ jnewell@Chevron.com Chevron North America Exploration and Production Midcontinent/Alaska SBU 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 12/18/2008 • ~..~~ ~~......~ ~ ~ Q ~~~ - ~ ~ ~ ~.._..~ ~. ~ ~ _~ C01~5ERQATIO C 1- II S~pK Timothy Brandenburg Drilling Manager Unocal PO Box 196247 Anchorage AK 99519 . SARAH PAL/N, GOVERN.OR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Swanson River Field, Tyonek Gas Storage Pool, KGSF #3 Sundry Number: 308-438 Dear Mr. Brandenburg: Unocal recently submitted a sundry application f'ar the subject well seeking approval to complete final abandonment in late Spring 2009. Attached to Form 10-403 were the operations summary and a wellk,ore drawing reflecting the subsurface plugging work recently accomplished. After reviewing the proposed operational plan an~i information, it has been determined that a sundry application is not needed in this case. Sundry Approval 308-347 authorized Unocal to accomplish all work necessary to P&A the well. Since it is not possible to complete the ~ctual cutoff at this time, it is appropriate to submit Form 10-407 showing the ~~ell Suspended. 308-34? is still valid. UnocaT is requested to submit only the Form 10-407 for this well. The documents already provided will be attached completing the submittal. Unocal is also requested to notify the Commission via electronic mail when the work to remove the wellhead, install the marker and complete the P&A is sche~i~led.. Please contact Tom Maunder, PE at 793-1250 with any questions. Sincerely, / Cathy . Foerster Commissioner -~- DATED this ~ day of December, 2008 Encl. ~ ~ ; , ... ~~~~~~ STATE OF ALASKA a ALAS IL AND GAS CONSERVATION COMMIS , N ~rbv APPLICATION FOR SUNDRY APPROVALS ~' 20 AAC 25.280 ,` '.. , ; - ~. 1. Type of Request: Abandon~ Suspend Q Operational shutdown ^ Perforate Q Waiver OtherO Alter casing^ Repair well ^ Plug Perforations ^ Stimulate Q Time Exfension ^ Cut Csg & Bury 5' Change ap ved program^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspended Well ^ below ground level 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number. Union Oil Company of Californi Development ~ Exploratory ~ 203-074 ~ 3. Address: Stratigraphic ~ Service ~, 6. API Number: PO Box 196247, Anchorage, AK 99 50-133-20523-00 , 7. If perforating, closest approach in po ) opened by this operation to nearest 8. Well Name and Number: property line where ownership or lando ership changes: Spacing Exception Required? Yes ^ No ~ Kenai Gas Stora e FBCIII KGSF #3' 9. Property Designation: ~ 10. KB Elevation (ft): 11. Field/Pool(s): FEDA028406 191' AMSL Swanson River Field / T onek Gas Stora e 12• RESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth ND (ft): E tive epth MD (ft): Effective Depth ND (ft): Plugs (measured): Junk (measured): 7,920' 6,253' - Surf SurFace (GL) Surface (cement) N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 65' 13-3/8" 65' Surface 2,060' 9-5/8" 2, 0' 1,995' 7,930 psi 6,620 psi Intermediate Production 7,263' 7" 7,263' 6,245' 8,160 psi 7,020 psi Liner 1,703' 3-1/2" 7,906' 6,252' 10,160 psi 10,530 psi Perforation Depth MD (ft): Perforation Depth TV ubing Size: Tubing Grade: Tubing MD (ft): - 2" 9.2# L-80 IBTC SCC 2514'- 7,363' See Attached Schematic See Attached Schema 3-1 9. L-80 IBTC SCC, SS WW Scr 7,363'-7,906' Packers and SSSV Type: Packers a D(ft): Baker 3-1/2"x7" SAB-3 Perm Packer and N/A 6,203' and N 13. Attachments: Description Summary of Proposal Q 14. Well Class a sed work: Detailed Operations Program ^ BOP Sketch ^ E~I tory ^ Development ^ Service ^~ , 15. Estimated Date for 10/8/2008 16. Status after p osed work: Commencing Operations: Oil Gas Plugged Q- Abandoned ^ 17. Verbal Approval: Date: WAG GINJ NJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Jac e II 263-7832 Printed Name Timothy C. Brandenburg Title Drilling Manage Signature ~"-"" ~ ~ ., a~, Phone 276-7600 Date 12/3/2008 ,r ~y COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: _ ~ Plug Integrity ^ BOP Test ^ Mechanical Integrity Test ^ Location Clearance ^ Other: Subsequent Form Required: ~~'~~~~~ ~~~ ~F~~^ ~ ~' ~~~~ APPROVED BY Approved by: COMMISSIONER THE COMMISSION Date: _ ~~ ,~ ~ Form 10-403 Revised 06/~00 t-~ ~~~ ~~`~ Submit in Duplicate ~T.• 4 RT-iHF: 119' KB Cormsm ~ H { Inhibitor ~ ssB„ " - p ~ Z~~a ez~n~~ • '. w/ Poppet ~ ~ ~ . ~ Valve @ eP ~ 2na Jet Cut ~ 2514' T casing TOC @556a MD/ 5211' VD (from temperaWre log) ~ydraulic set ~acker(c~+/-50° ~ 2 nclinatan for ~v'reline aocess . _ 3 A Top of 62-5 Sand @ 7167' MD / 6236' VD 7" ~ 7,263' '~ 8'/z hdeTO 4 + D ~ 7326' MD 6246' VD E Casing and Tubing Detail Size Type WU Grade Top Btm CONN/ID 13-3/8" Structural 68#, K-55 Surface 65' 12.415" 9-5/8" Surface 53.5#, L-80 Surface 2,060' BTC/ 8.535" 7" Surface 29#, P-110 & L-80 Surface 7,263' TKC/ 6.184" Tubing 2,514' 7,363' IBTC SCC/ 2.992" 3-1/2" Production 9.2#, L-80 7,363' 7,906' IBTC SCC/ 2.992" SS WW Screen Upper Area Detail # Depth Item 1• 2,038' HES 7" EZDrill w/Poppet Valve 2. 6,203' 7" x 3'/z" SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3~ 6,243' 3 1/2" 'XN' nipple (min. ID = 2.75") 4~ 7,347' 3 YZ" Perf sub (to circulate cement) Productive Zone Abandonment Detail A~ 6,281' Cement top on retainer (tagged 8/22/07) B~ 7,284' Cement Retainer w/ poppet valve ~~ 7,294'-7,299' Abandonment Cement Squeezed Below Retainer ~• 7,308' Cement Retainer (left in hole) E• 7,318'-7,323' Squeeze holes F~ 7,339' Coil BHA Fish (8') G~ 7,347' Tag Hard Fill H~ 1685' TOC @ 1685' Pumped 45 BBI's 15.8 PPG Class G Cement -• Surface TOC @ Surface, Pumped 35 BBI's 15.8 PPG Class G Cement J• AGL Tree To Be Cut Off Summer 2009 "3' Below Natural Ground Level" F G a-vz~ ~ ~,~~ ~r~ .4 ,~,..~,, TD =7,920' ND = 6,253' KGSF#3 As-built Well Schematic 12-01-08.doc U dated b JRN From: Newell, Jack R [FEP] [JNewell@chevron.com] Sent: Wednesday, November 19, 2008 8:16 AM To: Maunder, Thomas E (DOA) Cc: Tyler, Steve L Subject: Chevron, 308-347 : KGSF 3, Charted Test Attachments: 11-18-08_POST Tub_Punch.pdf; 11-19-08_2000_PSI_Test.pdf Mr. Tom Maunder, The well before MORU has been showing: "0" PSI 3-1/2" tubing "0" PSI 7" x 3-1/2" Casing "0" PSI on 9-5/8" casing KGSF 3 well has been pressure tested: 7' casing and 3-1/2" tubing, 3-1/2" tubing was punch, well circulated to kill weight fluid, pressure tested to 2000 PSI for integrity of 7" casing after 3-1/2" after tubing punch. Have attached both pressure charts. The charts were on a 24 hour clock with times noted. The fluid was pumped into the well @ 45F. Mr. John Crisp has been notified of these and the forward plan below. Forward Plan: We will today: RU to cut the tubing @ 2510' below the chemical injection mandrel. A charted pressure test will be completed to verify integrity of the 7" casing. We will send this chart to you once completed. After positive indications we will be RU to pull tubing out of the hole as planned, continue abandonment. «11-18-08_POST_Tub_Punch.pdf» «11-19-08_2000_PSI_Test.pdf» Jack R Newell ^~B~ (~(B~~B~ ~ ~~B j~~well@Chevron.com "°'~~~=~r~~n North America Exploration and Production ~•` ~~ ~~fi~~nt/Alaska SBU ( ~~ ~ t +t~ :~~ink Urive, Suite 100 : ia. , ,; ~:, alaska 99503 _ . :? _3-7832 ~ €,~_, `~t ~7G24 ~ • -- , . ~. _. ~2 ~ r , , _- ~_ + ~ ~`~ J .. ,. , ~ ~ ~._ ~ ~ ~ ~,,•~"'~r f . . ~ . 3e ~s~,~~~\~' ,~' ~ ~ ~ / .; .. l. ~ . ~ °"y~ r'~~ `~.Q r ..`', ' ~ y- ' .. .:~.e f ~ ~ _~ "`.• ~ ~/ - ~k'``~ s r ,,..,.,_. -~~ ~ r . r" ` fc'~5~ r` '~ ~ ~ ~ t ~; ~X ' '_. -~ ~ ` ~ `\ ~Y~~` ~i '~~` . .~° ; " 2.'-`"""-~,,. , r y l . ' t ~ ~ ' 7~.' ~ _ \`~, `.: ~.+ `'t . 6~ '- ~. +f, t ; ~ - . 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Q~ s i %~ t - t ~ t ~/ • ~~ \ f'r ~ f ~- ~~ ` f _\ ~~\ 1'; ' F` ~~ ,~ ~ b: ' • ~.f ~ rr . 1 , ~~ ~ ~~ ~~ 'f ~~*~.'J 4~ ~~~ ,;~°~` \~~%! r r .,i ' x~~ . ~I i ' t~ `J~ , , ~ f ~~ ~ \ ' X ~ ~ CO ~,, ! ~ ~`'~ t ~~,~ . l _ . ~~~1 ~ .~ j ` ? f ~ ' I~' 'a ~~ ~,~e' p~ -~-"'#_- ~ k !~~ ' ~ ~ ~ ~ r ~.bCti~ : - ~ r ~ ~ . ~ ~ _ ~' it . , ri~ . . , ~, . \ ~ ~ ` ~ ~ ~~" ~ _ _ . _. -..t~~ "~ yy„~'~, S' e -, -,.. ~ d' ,;` ~~ ,.~~C,~ ,~~~ ~ ~ ~ ~ ~ -~f-4~ ..,.-- r ~~ ~ ~ ....~'~, ~ 4 9 ~`",~' i : ~ • j ~ ~ . ` i ~'~' ~ ~+ ~ ~ ~ " `, ~~-„f"~ i ~ ~+~- c'1 ~~ _~~ , ~'~"--I _ ' - _ - ~/~ ~ ~ ~'~ 6''` 9 ~. ` Z1 f', ~~ ~ ~r ___.- , . 9 ,IYQNf1S ..--°''' ~ ~ ~ J,~~3" ~6 WF _ 9 ~ ~~ Y _"---- `~ J f. _ _ ~ f~. -~-_€~_ •` ~-~. 6 ` ~~s ~. ~~. ~ I ~' \~~~~` ,.~,~ .~ ``\ - ~ '~ `~ ~ j~ ~~ ~ i ~~ ~~ rrr 6+~ (~ Page 1 of 1 ~ • Maunder, Thomas E (DOA) From: Regg, James B (DOA) Sent: Tuesday, November 18, 2008 4:28 PM To: Jones, Jeffery B (DOA) Cc: Maunder, Thomas E (DOA) Subject: KGSF-3 Attachments: KGSF-3 P&A.pdf Spoke to Ken Lucas (Union; 283-1670) this afternoon (410 pm). Attached FYI is schematic and procedure for full P&A of KGSF #3. They did a pressure test today (step 3 of procedure); plan to cut tubing tomorrow and retest to make sure they did not compromise casing. I waived witness - Lou has jury duty; Bob is unavailabie. Requested he send in charts for pressure tests. Told him we would witness final surface abandonment. Jim Regg AOGCC 333 W.7th Avenue, Suite 900 Anchorage, AK 99501 907-793-1236 12/18/2008 ~ ~ Page 1 of 1 Maunder, Thomas E (DOA) From: PORHOLA, STAN T [stan.porhola@chevron.com] Sent: Tuesday, October 30, 2007 4:19 PM To: Maunder, Thomas E (DOA) Subject: RE: KGSF #3 (203-074) That has come to light after I submitted the 10-404, so I sent in the 10-407 but didn't want to completly duplicate the 10-404 and attachments. Also, I should have paid closer attention to the subsequent form required on the approved sundry. Stan Porhola Drilling Engineer MidContinent/Alaska Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com hfai! Con~clentia! Fooler Privileged/Confidentia/ inFormation may 6e contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or othenvise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contactinq me at (907) 263-7640. From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Tuesday, October 30, 2007 12:13 PM To: PORHOLA, STAN T Cc: Buster, Larry W Subject: RE: KGSF #3 (203-074) Stan, In late September you submitted a 404 report for the deep plugging operations conducted through August 22. In mid October you submitted a 407 report covering the same work. When a well is suspended, the appropriate reporting form is the 407. A 404 is not required in this case. Call or message if you have any questions regarding this matter. Tom Maunder, PE AOGCC M Page 1 of 1 Re ame B D A l~ `~ gg,J s ( O ) ~~ V I From: Regg, James B (DOA) Sent: Monday, June 01, 2009 4:01 PM ~~~ ~r~~~~ To: 'tylerSL@chevron.com' Subject: Swanson P&As Attachments: Surf Abandonment SRF KGSF-3 Plate 05-08-09 LG.jpg; SRU 211-33 Plate 05-08-09 LG.jpg There is wrong info on both marker plates (photos attached) KGSF #3 -Chevron is not a designated operator in Alaska; should be either Union or Union Oil Company of California -wrong API #; should be 50-133-20523-00 - wrong distances from lease lines; should be 1754 ft FNL, 4030 ft FEL SRU 211-33 - Chevron should be Union Jim Regg AOGCC 333 W.7th Avenue, Suite 100 Anchorage, AK 99501 907-793-1236 ~~,iP~ ~ ~~ 2~~` 6/1 /2009 * R Incorrect Info on Abandonment Marker Plates Swanson River Unit Photos by AOGCC Inspector L. Grimaldi 5/8/2009 SRU 211-33 (PTD 208-152) ",.~: - . _, . ~ ' ~ -~. 1 ' ~ 1 ~ ~1 • • ^~ ~ 1 ~• ~ ~ ~•t 1 .~y. ~ V ; t i " ~ l y ~ I ~~ yy,, S yy~ ,s~ n . ,. ~ ~ . n .. ~. '~ "~° SRU KGSF #3 Should be Union (or Union Oil Company of California); Chevron is not designated operator Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211... Page 1 of 3 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, May 21, 2009 8:18 AM To: 'Newell, Jack R [FEP]' Cc: Harness, Evan; Kanyer, Christopher V; Santos, Ronilo; Grimaldi, Louis R (DOA); Jones, Jeffery B (DOA); Noble, Robert C (DOA} Subject: RE: Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211-33 Jack, Thanks for the update. Contact the Inspectors as necessary to finalize the work out. Call or message with any questions. Tom Maunder, PE AOGCC From: Newell, Jack R [FEP] [mailto:JNewell@chevron.com] Sent: Thursday, May 21, 2009 8:14 AM To: Maunder, Thomas E (DOA) Cc: Harness, Evan; Kanyer, Christopher V; Santos, Ronilo Subject: RE: Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU2i1-33' ° "~~' Mr. Tom Maunder, Swanson River Unit KGSF 3 PTD: 203-074 Approved Sundry #308-438 Activities were witnessed by Lou Grimaldi. ~~~,,$~ ~~,j'~ ~~ ~ ~~~~ Cut-off casings 66" below natural ground level. Used Class G cement to have cement to surface. Welded marker plate on to cut casings. We have prepped cellar for removal. Roads in the SRU are improving for mobilization of equipment to remove and bury marker plate. Swanson River Unit SRU 41-33 PTD: 161-003 Approved Sundry #308-312 We have prepared location, shot for natural grade level. Pad and roads were soft to this location. Have not mobilized dirt equipment to cut-off casing, remove, and bury cellar. Swanson River Unit SRU 211-33 PTD: 208-152 Approved Sundry 308-439 Activities were witnessed by Lou Grimaldi. Cut casings off 6' below natural ground level, Natural grade 29" below cellar grating. Cement to surface from drilling activities, no top fill. Welded marker plate. Prepped cellar, roads soft for crane movement. Waiting on road limitations, should be finished with activities within 30 days. Jack R. Newell • • Chevron North America Exploration and Production 5/21 /2009 Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211... • • MidcontinentlAlaska SBU 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 Tel (907) 263-7832 Fax (866) 401 0624 Mobile (907) 529-5450 Page 2 of 3 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Thursday, May 21, 2009 7:46 AM To: Newell, Jack R [FEP] Subject: RE: Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211-33 Jack, Just afollow-up; was the work able to be accomplished? Tom From: Newell, Jack R [FEP] [mailto:)Newell@chevron.com] Sent: Friday, May 01, 2009 9:04 AM To: Maunder, Thomas E (DOA); Regg, James B (DOA); Thomas_Zelenka@blm.gov; Tim.Lawlor@ak.blm.gov; g reg_noble@ak. blm.gov Cc: Harness, Evan; Menapace, Michael Sam; Tyler, Steve L; Kanyer, Christopher V; Santos, Ronilo Subject: Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211-33 Gentlemen, Follow upon phone voice messages to Tom Maunder, Jim Regg, Tim Lawlor: E-mail notification of proceeding: Swanson River Unit Well Abandonment: Continuation of surface clearance; We will be commencing as early as Monday May 4, 2009 to continue operations that were deferred due to ground freezing Fall 2008 on the below listed wells: The wells have previously been cemented to surface per approved sundry and other filings. Swanson River Unit KGSF 3 PTD: 203-074 Approved Sundry #308-438 Continue with approved operational goals. Swanson River Unit SRU 41-33 PTD: 161-003 Approved Sundry #308-312 Continue with approved operational goals. Swanson River Unit SRU 211-33 PTD: 208-152 Approved Sundry 308-439 Continue with approved operational goals. 5121/2009 Chevron: Swanson River Unit, Continuation of Operations, KGSF3, SRU41-33, SRU211... Page 3 of 3 If there are questions please calf me, there is no particular order implied Thank you, Jack R Newell • • jnewell@Chevron.com Chevron North America Exploration and Production Midcontinent/Alaska SBU 3800 Centerpoint Drive, Suite 100 Anchorage, Alaska 99503 Tel 1 907 263-7832 Fax 1 866 401 0624 Mobile 1 907 529 5450 Mail Confidential Footer Privileged/Confidential information maybe contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. if you receive the message in error, you shoo/d destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7832. 5/21 /2009 • • SARAH PAL/N, GOVERNOR ~~ ~ ~ 333 W 7 h CO1~T5ERQATIOI~T COAIlrIISSIOI~T t AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Timothy Brandenburg Drilling Manager Unocal PO Box 196247 Anchorage AK 99519 ~ ~ aq Re: Swanson River Field, Tyonek Gas Storage Pool, KGSF #3 Sundry Number: 308-347 Dear Mr. Brandenburg: D~~ Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, ~~~~J Daniel T. Seamount, Jr. Chair 2 S~ DATED thisr ~ day of October, 2008 Encl. ~1' ~ _ STATE OF ALASKA ~ i ~~~ .3 ~ ~3~ ~~AL OIL AND GAS CONSERVATION COM SSION APPLICATION FOR SUNDRY APPROVALS 20 AAC 25.280 ~' '~ '' ~ ~ '~'~~ .~.~;; ~ z - ~~ ~ ~ , dpi 1. Type of Request: Abandon^ , Suspend ^ Operational shutdown ^ Perforate ^ Waiver ^ OtherO Alter casing^ Repair well ^ Plug Perforations ^ Stimulate ^ Time Ex i n ^ Cut Csg & Bury 5' ~ Change approved program^ Pull Tubing ^ Perforate New Pool ^ Re-enter Suspen ell below ground level 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development ^ Exploratory ^ 203-074 - 3. Address: Stratigraphic ^ Service ^, 6. API Number: PO Box 196247, Anchorage, AK 99519 50-133-20523-00 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes ^ No 0 Kenai Gas Stora a FaClll KGSF #3 - 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool(s): FEDA028406 191' AMSL - Swanson River Field / T onek Gas Stora e 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7,920' - 6,253' ~ 6,281' 5,866' 6,281' (cement) N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 65' 13-318" 65' 65' Surface 2,060' 9-5/8" 2,060' 1,995' . 7,930 psi 6,620 psi Intermediate Production 7,263' 7" 7,263' 6,245' 8,160 psi 7,020 psi Liner 1,703' 3-1/2" 7,906' 6,252' 10,160 psi 10,530 psi Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 3-1/2" 9.2# L-80 IBTC SCC Surf- 7,363' See Attached Schematic See Attached Schematic 3-1/2" 9.2# L-80 IBTC SCC, SS WW Scr 7,363'-7,906' Packers and SSSV Type: Packers and SSSV MD (ft): Baker 3-1/2"x7" SAB-3 Perm Packer and N/A 6,203' and N/A 13. Attachments: Description Summary of Proposal Q 14. Well Class after proposed work: Detailed Operations Program ^ BOP Sketch ^ Exploratory ^ Development ^ Service ^~ ' 15. Estimated Date for 10/8/2008 16. Well Status after proposed work: Commencing Operations: Oil ^ Gas ^ Plugged ^~ - Abandoned ^~ 17. Verbal Approval: Date: WAG ^ GINJ ^ WINJ ^ WDSPL ^ Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jack Newell 263-7832 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature 276-7600 Date C 9 -z 3 ~~ COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ~% Plug Integrity BOP Test ^ Mechanical Integrity Test ~ Location Clearance ;~ } Other. -~~~ c--- c~ ®p~r~~~~--~ ~ ~~c55 ~~~t-~~S~L~~ c~- Subsequent Form Required: ~,.,9`O~ ~: -~ fi APPROVED BY ~ Approved by: ~ C MMISSIONE~._. COMMISSIO Date: ~ ~ ~ Form 10-4~~R~sed 06/2006 ~ ~ ~ ~ ~ ~~ ~ ~ ` ~°~'~~"'~~~" Submit in Duplicate • Maunder, Thomas E (DOA) • Page 1 of 2 From: Newell, Jack R [FEP] [JNewell@chevron.com] Sent: Monday, October 06, 2008 1:45 PM To: Maunder, Thomas E (DOA) Cc: Brandenburg, Tim C; Tyler, Steve L; Kanyer, Christopher V; Mamess, Evan; Walsh, Chantal [Petrotechnical] Subject: RE: KGSF #3 (203-074) Attachments: KGSF#3 AOGCC Procedure 9-22-08.doc Mr. Tom Maunder, Per our conversation today along with Mr. Steve Tyler, Have attached an updated summary of operations and answered questions below for clarity. Jack R. Newell ^$B! ~ ^(B~$B! ~ ^(B Chevron North America Exploration and Production Midcontinent/Alaska SBU 909 W. 9th Avenue Anchorage, Alaska 99501-3322 Tel (907) 263-7832 Fax (866) 401 0624 Mobile (907) 529-5450 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, September 29, 2008 4:08 PM To: Newell, Jack R [FEP) Cc: Brandenburg, Tim C Subject: KGSF #3 (203-074) Jack, 1 am reviewing the proposed P&A plan and have some questions. 1. Is lease water the proper fluid to leave in the wellbore? The well will be left with 9.3+ PPG NaCL w/ 2% 0132 Petrolite Corrosion Inhibitor. 2. What fluid is presently in the well above the plug at 6281 ^$6!Go(B? Currently the wellbore has 9.0 PPG in the 3-1/2" x 7" annulus, 8.4 PPG KCL in the 3-1/2" tubing. 3. Is it known that it will be possible to circulate the 7 x 9-5/80$6!10(6 annulus through the planned perforations at 2165? The 9-5/8" x 7" annulus has 10.0 PPG OBM from when the well was drilled in 2003. From the information available we expect to be able to circulate through the tubing punch(s) @ 2165' 4. What BOP equipment is planned on the well? standard slickline/ a-line BOP equipment when rigged up, for tubing pull riser only to work platform. -We will pressure test the 7" casing and 3-1/2" tubing to a charted pressure of 250 PSI low/ 2000 PSI for thirty minutes to insure isolation to any formation. -The tubing will be cut @ 2510' with the tree on. -We will then perform a charted pressure test again to insure we have not jeopardized isolation to formation. 10/6!2008 Page 2 of 2 • -We will then ND tree/ NU riser to enable the POH tubing using crane. -NU 6-1/8" Master Valve Abandonment tree once tubing is pulled out of the hole to finish the abandonment process. Thanks in advance. Tom Maunder, PE AOGCC 10/6/2008 RT-THF: 119' KB 11318" ~ ~, 1 I ss/e^ ~ zosa ~° ~~re roc @5560' MD/ 5211' VD (from temperaWre log) Hydraulic set packer @ +/- 5( inclination for ~ireline aooess T' ~ 7,263' '2 °' 3 A ' Top of 625 Sand @ 7167' MD / 6236' VD B C 7326' MD seas' vD E F ,fi- n .~.. , ' ~ y `V ~~ /`. :a `r , s.ir :A :. TD=7,920' ND = 6,253' Swanson River Unit KGSF#3 son River Unit KGSF#3 Completed 8/22/07 Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID 13-3l8" Structural 68#, K-55 Surface 65' 12.415" 9-5/8" Surface 53.5#, L-80 Surface 2,060' BTC/ 8.535" 7" Surface 29#, P-110 & L-80 Surface 7,263' TKC/ 6.184" Tubing Surface 7,363' IBTC SCC/ 2.992" 3-1/2" Production 9.2#, L-80 7,363' 7,906' IBTC SCC/ 2.992" SS WW Screen Jewelry Detail # Depth Item ~~ 2,486' SFO-1 CI Methanol injection port (ID= 2.813") 2. 6,203' 7" x 3'/~° SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3. 6,243' 3 1/2"'XN' nipple (min. ID = 2.75") a. 7,347' 3'/z" Perf sub (to circulate cement) Abandonment Detail A. 6,281' Cement top on retainer (tagged 8/22/07) B. 7,284' Cement Retainer w/ poppet valve ~. 7,294'-7,299' Abandonment Cement Squeezed Below Retainer D. 7,308' Cement Retainer (left in hole) E. 7,318'-7,323' Squeeze holes F. 7,339' Coil BHA Fish (8') G. 7,347' Tag Hard Fill KGSF#3 Actual Well Schematic 9-22-08.doc UDdated by CVK wanson River Unit KGSF#3 Swanson River Unit Well KGSF#3 Proposed Last Completed 8/22/07 RT-THF: 119' KB : 1338" , C ~' ~. ~ a_~. Corrosion im~b~ror 9s/a° ~~06~ ~ ¢Drill ~ Popp valw@ zaoa BP @ ens Jet Cut @ 2510' 7"casing TOC @5560' MD/ 5211' VD (from emperah~re lag) Hydraulic set packer @ +/- 50 ° inclination for 2 ~irelne aooess , ' 3 A rop at s2~s Sand @ 7167' MD / 6236' VD T' ~ 7,263' - - °- B • C . BY::"hdeTC 4 D @ 7326' MD 6246' VD E F t'm .. G •' :g•.- TD =7,92 0' ND = 6,253' Casing and Tubing Detail Size Type Wt/ Grade Top Btm CONN/ID 13-3/8" Structural 68#, K-55 Surface 65' 12.415" 9-5/8" Surface 53.5#, L-80 Surface 2,060' BTC/ 8.535" 7" Surface 29#, P-110 & L-80 Surface 7,263' TKC/ 6.184" Tubing Surface 7,363' IBTC SCC/ 2.992" 3-1/2" Production 9.2#, L-80 7,363' 7,906' IBTC SCC/ 2.992" SS WW Screen Jewelry Detail # Depth Item 1. 2,486' SFO-1 CI Methanol injection port (ID= 2.813") Z. 6,203' 7" x 3 YZ° SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3. 6,243' 3 1/2"'XN' nipple (min. ID = 2.75") a. 7,347' 3'/z" Perf sub (to circulate cement) Abandonment Detail a 6,281' Cement top on retainer (tagged 8/22/07) B• 7,284' Cement Retainer w/ poppet valve ~ 7,294'-7,299' Abandonment Cement Squeezed Below Retainer D. 7,308' Cement Retainer (left in hole) 6. 7,318'-7,323' Squeeze holes F. 7,339' Coil BHA Fish (8') G. 7,347' Tag Hard Fill KGSF#3 Proposed Well Schematic 9-22-08.doc Updated by CVK Chevron OBJECTIVE: • Rigless plug & abandon of wellbore w/ cement per summary. PROCEDURE SUMMARY: Swanson River Unit Well #KGSF #3 10/06/08 1 Tree On -MIRU Pumping equipment, tanks, flow manifolds, layout to allow for RU of workover platform w/o moving placed equipment. 2 Tree On -MIRU E-Line unit PU SSPF Tubing punch, RIH t/ 6125' Tree On -Turn over wellbore w/ 9.4 PPG NaCI w/ Corrosion Inhibitor, monitor well ( ~ ~~ 3 for static fluid levels -Test wellbore t/ 250 PSI low/ 2000 PSI High, recording results~/~ ~O~~t-}- ~S~C- for 30 minutes for formation isolation. ~ / Tree On -MIRU E-line unit - PU 2.70" Jet Cutter - RIH t/ 2510' cut tubing - POOH ~ ~ V.~ ~ ~ ~S 5 4 Tree On -MIRU 40T Crane, portable work platform, and associated equipment. i ~~ `~~~~~~~~ ~~ 5 ND Tree, NU riser, Pu112510' of tubing OOH w/ crane ~~~Q~`~ ~~~ ND Riser - NU Abandonment tree to perform remaining abandonment ~ ~~S`SJC~c~~S~ C~S(~ ` 6 Abandonment Tree On -MIRU Slickline, set 7" Cavins plug @ 2175' "~ ~ ~ ~~~`~ ` 7 Abandonment Tree On -MIRU E-Line unit - PU casing punch gun - RIH punch casing ~~' @ 2165 -POOH - Establish circulation down 7" up 7"x9-5/8" Annulus 8 Abandonment Tree On - RIH w/ 7" retainer w/ poppet valve -Set @ 2000' - POH - ~~'~~s--°~ RD E-Lme `~~ 9 Abandonment Tree On -Pump 29 bbls of class G of 15.8 ppg neat cement slurry - RD ~~,~~ 5 ~~-f: cementers 10 Abandonment Tree On - RU Slickline - RIH, set Cavins BP @ 520' -POOH - RD ~ ~ 2~ ~t~® ,F- Slickline 11 Abandonment Tree On -MIRU E-Line - RIH t/ 505' with tubing punch gun, punch tubing -POOH - RD Slickline ~,:~-^"'" Abandonment Tree On -MIRU cementers -circulate 28 bbls class G 15.8 ppg neat 12 cement slurry around - RD cementers 13 Abandonment Tree On - RD well workover equipment & platform 14 MI to excavate cellar, cut off well head tubulars - 3'-5' below ground level C©~~~~ ~~5 C~~ . 15 Weld on ID plate -Obtain GPS Coordinates (NAD 27) -Bury -Clean up location - ~' demob from site ~ W e~ \~~~j ~~~~~ KGSF#3 REVISED BY: CVK 9-22-08 Revised 10-06-2008 JRN Chevron ~ ~ Swanson River Unit Well #KGSF #3 ~ `f 9/22/08 _~ OBJECTIVE: • Rigless plug d'~abandon of wellbore w/ cement per summary PROCEDURE SUM11(IARY: 1 MIRU Pumping equipment, anks, flow manifolds, layout to allow or RU of workover platform w/o moving placed uipment. 2 MIRU E-line unit - PU 2.70" Jet utter - RIH t/ 2510' cut tubin -POOH 3 Circulate wellbore w/ lease water u it clean, monitor well fo static fluid levels- Test wellbore t/ 250 PSI low/ 2000 PSI Hi ,recording results f 30 minutes 4 MIRU 40T Crane, portable work platfo and associated quipment. 5 ND Tree, NU riser, Pu112510' of tubing O w/ crane 6 MIRU Slickline, set 7" Cavins plug @ 2175' _ MIRU E-Line unit- PU casing punch gun- RIH casing @ 2165 -POOH - ~~~~~~ Establish circulation down 7" up 7"x9-5/8" Annul ~~ r~ 7 ~~~~ ~~~ 8 RIH w/ 7" retainer w/ poppet valve -Set @ 2000' - P - RD E-Line ~-Y, - (- _. _s _____,Y ,~~_ _ _ 9 Pump 29 bbls of class G of 15.8 ppg neat ceme t slurry - cementers 10 RU Slickline - RIH, set Cavins BP @ 520' - P OH - RD Sl kline 11 MIRU E-Line - RIH t/ 505' with tubing p h gun, punchtub' -POOH - RD Slickline 12 MIRU cementers -circulate 28 bbls clas G 15.8 ppg neat cement rry around - RD cementers 13 RD well workover equipment & plat rm 14 MI to excavate cellar, cut off well ad tubulars- 3'-5' below ground leve 15 Weld on ID plate -Obtain GPS C ordinates (NAD 27) -Bury -Clean up loc ion - demob from site KGSF#3 REVISED BY: CVK 9-22-08 6 )~/~/i/ V / ~' ~ l~i j ~-, .~ ~ 3 i2 ~~ `3~ ~~ • Maunder, Thomas E (DOA) From: Newell, Jack R [FEP] [JNewell@chevron.com] Sent: Thursday, October 30, 2008 11:20 AM To: Maunder, Thomas E (DOA) Subject; FW: Chevron: KGSF #3 (203-074) Mr Tom Maunder, Update to the Swanson River Unit Well KGSF 3. The field has reported that for the last days the well is reported to have" "0" PSI on the 3-1/2" tubing "0" PSI on the 3-1/2" x 7" production casing All other annulus "0" PSI Jack R. Newell ^$B! ([~(B~$B! ~ ^(B Chevron North America Exploration and Production Midcontinent/Alaska SBU 909 W. 9th Avenue Anchorage, Alaska 99501-3322 Tel (907) 263-7832 Fax (866) 401 0624 Mobile (907) 529-5450 Page 1 of 5 From: Newell, Jack R [FEP] Sent: Monday, October 27, 2008 12:31 PM To: 'Maunder, Thomas E (DOA)' Cc: Tyler, Steve L; Harness, Evan; Walsh, Chantal [Petrotechnical]; Lucas, Ken Subject: RE: Chevron: KGSF #3 (203-074) Mr Tom Maunder, Update on Swanson River well KGSF 3: RE: Request Sundry Approval to proceed with plan to abandon KGSF 3 after monitoring of tubular pressures. *"** Have performed an integrity pressure test to the values that were performed on the productive zone plugging. Well is fluid packed with 8.4 PPG brine from previous operations - Pressure tested with Diesel fuel to prevent tree freezing and insure accuracy of pressure testing. 10-23-2008: 7" x 3-1/2" annulus was pressure tested to 1500 PSI. The pressure held stable for three hours. Left 500 PSI on annulus. 3-1/2" tubing was pressure tested to 2530 PSI. Annulus pressure rose to 615 PSI or gained 120 PSI from pressure test. Held for three hours - OK 10/30/2008 Page 2 of 5 10-24-2008: Check gauges and found we still had 615 psig on Production Csg and had 2440 psig on Tbg Gauge which was a 5 psig loss over night. 10-25-2007: Bled off the tubing and annulus to tank, left open to buckets for morning - no dripping or flow. SI bleed valves, hook up Barton pressure gauge to monitor pressures over night. No gas noticed during bleed down. 10-26-2008 AM : No pressure on 3-1/2" tubing or 7" x 3-1/2'° casing in the morning. Productive interval is not in communication with 7" casing or 3-1/2" tubing. We will circulate kill 10.0 PPG weight fluid before pulling 3-1/2" tubing out of the well bore We are requesting to have sundry approval for: " BOPE use for E-Line, wireline equipment during tubing punches and tubing cuts. * NON-BOPE open well bore while pulling 3-1/2" tubing OOH, *NU 7-1116" valve:w/ 6-1/8" bore, continuing wireline and cementing operations using a-line and wireline BOPE for operations after tubing extraction. Jack R. Newell ^$B! ~ ^(B^$B! ~ ^(B Chevron North America Exploration and Production Midcontinent/Alaska SBU 909 W. 9th Avenue Anchorage, Alaska 99501-3322 Tel (907) 263-7832 Fax (866} 401 0624 Mobile (907) 529-5450 From: Newell, lack R [FEP] Sent: Thursday, October 16, 2008 10:48 AM To: 'Maunder, Thomas E (DOA)' Cc: Tyler, Steve L Subject: Chevron: KGSF #3 (203-074) Mr. Tom Maunder, Update on KGSF #3 well: Have attached the information charted from the observation that we have been performing since last Thursday. We would like to proceed with the tree on abandonment and start moving in equipment to, punch tubing, circulate 9.3+ kill weight fluid w/ corrosion inhibitor in. This will give us a consistent weight fluid in the 3- 1/2" x 7" annulus and also the 7" casing from the depth of the current 6281' PB depth. Monitoring the well we will cautiously proceed with the proposed summary of activities. Jack R. Newell ^$B! ~ ^(B^$B! ~ ^(B Chevron North America Exploration and Production Midcontinent/Alaska SBU 10/30/2008 • Page 3 of 5 909 W. 9th Avenue Anchorage, Alaska 99501-3322 Tel (907) 263-7832 Fax (866) 401 0624 Mobile (907) 529-5450 From: Merle, Greg L Sent: Wednesday, October 15, 2008 1:36 PM To: Newell, Jack R [FEP] Subject: RE: KGSF #3 (203-074) Jack, 1 checked the pressur recorder at KGSF #3. Tubing pressure is at 18 psi and 7" pressure was 35 psi. I had the operator bleed off both strings and reattach the hoses to the recorder. On the chart, the pressures have been about the same since the recorder was hooked up on Saturday. Greg From: Newell, Jack R [FEP] Sent: Thursday, October 09, 2008 8:07 AM To: 'Maunder, Thomas E (DOA)' Cc: Brandenburg, Tim C; Tyler, Steve L; Kanyer, Christopher V; Harness, Evan; Walsh, Chantal [Petrotechnical]; Merle, Greg L Subject: RE: KGSF #3 (203-074) Mr. Tom Maunder, Update on the KGSF 3 well. Oct 7, 2008 We had 500 PSI on the 7" x 3-1/2" annulus and 400 PSI on the 3-1/2" tubing. We bled this down to 0 PSI on the annulus and bled to a slow trickle on the 3-1/2 tubing. We could never achieve a full stop of bleed. Quantifying bleed, approximately 2 gallons recovered total, al) being liquid. Oct 8, 2008 We went out to look at the pressures and had 0 PSI on the 3-1/2" x 7" annulus. We had 30 PSI on the 3-1/2" tubing. Oct 9, 2008 We are going to bleed the tubing to 0 PSI and put a chart recorder on the 3-1/2" x 7" annulus and 3-1/2" tubing and monitor to see where the pressures stabilize. A. Currently with only fluid being returned while bleeding, thermal expansion is suspect to have this psi increase. B. The annulus and tubing have a difference in fluid weights. 8.4 PPG in tubing, 9.0 PPG in 3-1/2 x 7" annulus. Forward plan: Chart record the parameters, both annulus and tubing in this KGSF 3 well bore. 10/30/2008 l.J Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Monday, October 06, 2008 4:21 PM Page 1 of 2 To: 'Newell, Jack R [FEP]' Cc: Brandenburg, Tim C; Tyler, Steve L; Kanyer, Christopher V; Harness, Evan; Walsh, Chantal [Petrotechnical] Subject: RE: KGSF #3 (203-074) Jack, et al, Thanks for the updated procedure. I have a request ... is it possible to obtain the current wellbore pressure values (if any)? Demonstrating that the well does not have any pressure present following the lower wellbore plugging will help your case for not employing a BOP while pulling the tubing. Thanks in advance. Calf or message with any questions. Tom Maunder, PE AOGCC From: Newell, Jack R [FEP] [mailto:JNewell@chevron.com] Sent: Monday, October 06, 2008 1:45 PM To: Maunder, Thomas E (DOA) Cc: Brandenburg, Tim C; Tyler, Steve L; Kanyer, Christopher V; Harness, Evan; Walsh, Chantal [Petrotechnical] Subject: RE: KGSF #3 (203-074) Mr. Tom Maunder, Per our conversation today along with Mr. Steve Tyler, Have attached an updated summary of operations and answered questions below for clarity. Jack R. Newell • • Chevron North America Exploration and Production Midcontinent/Alaska SBU 909 W. 9th Avenue Anchorage, Alaska 99501-3322 Tel (907) 263-7832 Fax (866) 401 0624 Mobile (907) 529-5450 From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Monday, September 29, 2008 4:08 PM To: Newell, Jack R [FEP] Cc: Brandenburg, Tim C Subject: KGSF #3 (203-074) Jack, I am reviewing the proposed P&A plan and have some questions. 10/7/2008 Page 2 of 2 1. Is lease water the proper fluid to leave in the wellbore? The well will be left with 9.3+ PPG NaCL w/ 2% 0132 Petrolite Corrosion Inhibitor. 2. What fluid is presently in the well above the plug at 6281'? Currently the wellbore has 9.0 PPG in the 3-1l2" x 7" annulus, 8.4 PPG KCL in the 3-1/2" tubing. 3. Is it known that it will be possible to circulate the 7 x 9-5/8" annulus through the planned perforations at 2165? The 9-5/8" x 7" annulus has 10.0 PPG OBM from when the well was drilled in 2003. From the information available we expect to be able to circulate through the tubing punch(s) @ 2165' 4. What BOP equipment is planned on the well? standard slickline/ a-line BOP equipment when rigged up, for tubing pull riser only to work platform. -We will pressure test the 7" casing and 3-112" tubing to a charted pressure of 250 PSI low/ 2000 PSI for thirty minutes to insure isolation to any formation. -The tubing will be cut @ 2510' with the tree on. -We will then perform a charted pressure test again to insure we have not jeopardized isolation to formation. -We will then ND tree/ NU riser to enable the POH tubing using crane. -NU 6-1/8" Master Valve Abandonment tree once tubing is pulled out of the hole to finish the abandonment process. Thanks in advance. Tom Maunder, PE AOGCC 10/7/2008 • • ~..,,.. 03/01/2008 DO NOT PLACE. .~`° ~~" ` _- ~.. ,- ANY NEW MATERIAL UNDER THIS PAGE F:1LaserFiche\CvrPgs_Inserts\Microfilm Marker.doc • Page 1 of 1 • Maunder, Thomas E {DOA) From: Maunder, Thomas E (DOA) Sent: Tuesday, October 30, 2007 12:13 PM To: 'PORHOLA, STAN T' Cc: Larry Buster Subject: RE: KGSt= #3 (203-074) Stan, In late September you submitted a 404 report for the deep plugging operations conducted through August 22. !n mid October you submitted a 407 report covering the same work. When a well is suspended, the appropriate reporting form is the 407. A 404 is not required in this case. Call or message if you have any questions regarding this matter. Tom Maunder, PE AOGCG ~.~~ N ~ V ~t ~ 2D07 10/30/2007 • STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMI ~ Z~a~ REPORT OF SUNDRY WELL OP~RA,.TIONS, ~sk~ I<~€~ ~~ ~ li~~a C~mcni:,sit~rt 1. Operations Abandon Repair Well Plug Perforations ~ Stimulate ~~, : <! : ~ Other ~ Suspend Performed: Alter Casing ^ Pull Tubing ^ Perforate New Pool ^ Waiver^ Time Extension ^ Change Approved Program ^ Operat. Shutdown ^ Perforate ^ Re-enter Suspended Weil ^ 2. Operator Union Oil Company of California 4. Well Class Before Work: 5. Permit to Drill Number: Name: Development ^ Exploratory ^ 203-074 3. Address: P.O. Box 196247, Anchorage, AK 99519 Stratigraphic ^ Service Q 6. API Number: 50-133-20523-00 7. KB Elevation (ft): 9. Well Name and Number: 16.5' above GL Swanson River KGSF #3 8. Property Designation: 10. Field/Pool(s): FED (A-028406) Swanson River Unit 11. Present Well Condition Summary: Total Depth measured 7920 feet Plugs (measured) 6281 true vertical 6253 feet Junk (measured) Effective Depth measured 6281 feet true vertical 5867 feet Casing Length Size MD TVD Burst Collapse Structural Conductor 65' 13-3/8" 65' BGL 65' BGL N/A N/A Surface 2060' 9-5/8" 2060' 1995' 7930 6620 Intermediate Production 7263' 7" 7263 6245' 8160 7020 Liner 1703' 3-1/2" 7906' 6246' 10160 10530 Perforation depth: Measured depth: N/A True Vertical depth: N/A Tubing: (size, grade, and measured depth) 3-1/2" L-80 6203' Packers and SSSV (type and measured depth) SAB-L3 6203' 12. Stimulation or cement squeeze summary: Intervals treated (measured): N/A Treatment descriptions including volumes used and final pressure: N/A 13. Representative Daily Average Production or Injection Data Oil-Bbl Gas-Mcf Water-Bbl Casing Pressure Tubing Pressure Prior to well operation: 0 0 0 0 600 Subsequent to operation: 0 0 0 0 0 14. Attachments: 15. Well Class after work: Copies of Logs and Surveys Run Exploratory^ Development ^ Service ^~ Daily Report of Well Operations x 16. Well Status after work: Oil ^ Gas ^ WAG ^ GINJ ~ WINJ ^ WDSPL ^ 17. I hereby certify that the foregoing is true and correct to the best of my knowledge. Sundry Number or N/A if C.O. Exempt: 307-242 Contact Stan Porhola Printed Name Tim Brandenburg ., Title Drilling Manager ~ Signature rf ,` ,~'{~. Phone 263-7640 Date 9/6/2007 Form 10-404 Revised 04/2006 ~ ~ ~ 1 ~\1 ~ ~ "~~, ~. fps i ~ ~ ~~(~"~~~~ Submit Original Only -:- s che~~~ri Daily Summary of Operations • KGSF #3 Plugback and Suspension Swanson River Field, Alaska 8/07/07: PJSM w/ Peak crews. Layout liner and berms for coil tubing operations around wells KGSF #2 and KGSF #3. Move in water and returns tanks. SDFN. 8/08-8/14/07: No Operations at KGSF #3. 8/15/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Chevron general orientation for crews. MIRU Coil tubing unit. Finalize rig up of coil tubing unit. Perform BOP test to 4000/250 psi. Test OK (witness waived by AOGCC). SDFN. 8/16/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Fill 3-1/2" x 7" annulus and pressure up to 540 psi. Starting tubing pressure at 600 psi. Circ fresh water down tubing from surface. With 130 bbls away, injection tubing pressure was 2850 psi. Stop injection and shut in well. RU coil injector. Shell test to 3500 psi. Open well and find 0 psi. TIH w/ 1.75" cement nozzle on 1.5" coil and tag up at 7339' CTM. (Coil tubing measurement). Pulled 2000# over coil weight. Go back to bottom and tag up at 7339' CTM. Pulled 4500# over coil weight. Pump 10 bbl barazan pill and start out of hole. At 5500' had pressure spike. Continue POOH. At surface, coil connector had pulled off of coil, leaving coil BHA in hole (Jet nozzle, check valve, coil stiffner). MU new BHA w/ end of tubing locator. TIH and locate XN nipple at 6235' CTM (6243' RKB). RIH to bottom and tag up on coil fish at 7310' CTM (7318' RKB). Pull to XN nipple and confirm location. POOH w/ coil. SDFN. 8/17/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. RU coil injector. MU perf BHA (1.56", 60°, 6 spfJ. Shell test coil to 4000 psi. TIH w/ perf BHA. Set perf guns on depth from 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fail to fire. POOH. Check perf BHA at surface. Re-pin firing head. TIH w/ perf BHA. Set perf guns on depth from 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fired. POOH w/ coil. All perfs fired. Tubing pressure 0 psi. 3-1/2" x 7" annulus 520 psi. SDFN. 8/18/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. RU injector and shell test to 2500 psi. Pump down tubing from surface at 3 bbl/min at 2550 psi. Prior to perforations, initial circulating rate of 3 bbl/min at 2850 psi. MU EZ-Drill cement retainer. TIH w/ retainer and set at 7300' CTM. POOH. MU cement stinger BHA and RIH to stab into retainer. Set down w/ 2000# and attempt to establish injection. No seal. Set down w/ 5000#, and 10,000# w/ no seal. PU above retainer and test tubing to 2000 psi and held pressure. Set down w/ 12,000# w/ no seal. POOH w/ coil. Tubing pressure 0 psi. 3-1/2" x 7" annulus 400 psi. SDFN. page 1 • • KGSF #3 Plugback and Suspension Swanson River Field, Alaska 8/19/07: SIMOPS meeting w/ Production. PJSM w/ Peak. Waiting on Thru-Tubing Systems (TTS) service hand to arrive from Louisiana to run 3-1/2" Paragon cement retainer. Clean and prep location. SDFN. 8/20/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. MU perf BHA (1.56", 60°, 6 spf). Shell test coil to 4000 psi. TIH w/ perf BHA. Set perf guns on depth from 7286' to 7291' CTM. Drop ball and pressure up to fire guns. No indication of guns firing. Troubleshoot guns, drop additional ball and pressure up. Guns fired. POOH. All perfs fired. MU TTS Paragon single trip cement retainer. Set retainer at 7276' CTM. Set down 4000# and pressure coil annulus to 500 psi. Retainer holding, confirm set. Establish injection w/ fresh water at 1 bbl/min at 2900 psi. Mix and pump 20 bbls LXT 15.8 ppg cement. Pump cement at 1 bbl/min at 3500 psi. 8/21/07: Pump cement down coil w/ 17 bbls away pressure at 3750 psi. At 20 bbls awy pressure was 3550 psi. Squeeze 11 bbls cement below retainer at 7276' w/ squeeze pressure at 3900 psi at 0.9 bbl/min. PU out of retainer and lay 9 bbls cement on top of retainer from 7276' to 6243'. Pump 2 bbls fresh water followed by 10 bbls barazan pill followed by 60 bbls fresh water. Displace w/ fresh water mixed w/ 1 % Bara-Cor 100 corrosion inhibitor from 6243' to 400'. Blow down coil w/ nitrogen at 300' to displace water for diesel freeze protection cap. RDMO coil. SDFN. 8/22/07: RU Pollard slickline. Pressure test lubricator 2500/250 psi. RIH w/ 2"x5' drive down bailer and tag cement at 6281' RKB (SLM). Collect sample and POOH. Had thick white mud in bailer. Smelled of corrosion inhibitor. Pressure up tubing to 2480 psi and chart. Bled down to 2450 psi in 30 minutes. Jeff Jones w/ AOGCC onsite for witness of tag and pressure test. RDMO slickline. SDFN. page 2 Chevron Swanson River Unit Kenai Gas Storage Facility #3 Actual Schematic 8-22-07 RKB = 191' AM SL CASING & TUBING DETAIL SIZE WT GRADE TOP BOTTOM 13 3/8" 68 K-55 0' 65' 9-5/8" 53.5 L-80 (BTC) 0' 2060' 7" 29 P-110 & L-80 (TKC) 0' 7263' 3 '/z" 9.2 L-80 (IBTC SCC) 0' 7363' 3 ''/z" 9.2 L-80 (IBTC SCC) SS WW Screen 7363' 7906' 1 9 5/8" surface casing @ 2060' MD (cemented to surface) `~ JEWELRY DETAIL NO. Depth Item 1. 2486' SFO-1 CI Methanol injection port (ID= 2.813") 2. 6203' 7" x 3 ''/z" SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3. 6243' 3 1/2" `XN' nipple (min. ID = 2.75") 4. 7347' 3 ''/z" Perf sub (to circulate cement) 7" casing TOC @ 5560' MD / 5211' VD (from temperature log) ABANDONMENT DETAIL NO. Depth Item A. 6281' Cement top on retainer (tagged 8/22/07) B. 7284' Cement Retainer w/ poppet valve C. 7294'-7299' Abandonment Cement Squeezed Below Retainer D. 7308' Cement Retainer (left in hole) E. 7318'-7323' Squeeze holes F. 7339' Coil BHA Fish (8') G. 7347' Tag Hard Fill Top of 62-5 Sand @ 7167' MD / 6236' VD :: , . / 8 ''/z" hole TD @ 7326' MD / 6246' VD ~---.~ A ti Hydraulic set packer @ +/- 50° inclination for wireline access 4 g ~' TD 6" hole @ 7920' MD / 6253' VD WBD KGSF#3 Actual 8-22-07.doc DRAWN BY: STP Maunder, Thomas E (DOA) From: PORHOLA, STAN T [stan.porhota@chevron.com] Sent: Saturday, October 20, 2007 10:39 PM To: Maunder, Thomas E (DOA) Subject: RE: KGSF #3 (203-074) Attachments: Daily Summary of Ops KGSF-3.pdf Tom, Attached is the daily ops summary for KGSF #3 to go along with the 10-407 previously submitted. Stan Porhola ~`'Q Q° Drifting Engineer MidContinentlAtaska Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Ce11 907 229 1769 porhost@chevron.com Mazl Conffdenticrl Footer Page I of I Privileged/Confidential information may be contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7640. From: Maunder, Thomas E (DOA) [mailto:tom.maunder@alaska.gov] Sent: Thursday,. October 18, 2007 2:33 PM To: PORHOLA, STAN T Cc: Buster, Larry W; Arthur C Saltmarsh Subject: KGSF #3 (203-074) Stan, We have received the 10-407 form listing this well as suspended. All that was included was a drawing of the wellbore. An operations report should also be submitted. Email is fine. Call or message with any questions. Tom Maunder, PE AOGCC 10/22/2007 ~~ ~~ . $ • STATE OF ALASKA ~ ~O /6-,D~ ~ ~ .. = ~ii~~ ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPOR"~~`~",~, e~mmE~s;ort 1a. Well Status: Oil^ Gas^ Plugged ^ Abandoned ^ Suspended Q zoar~c zs.~os 20AAC 25.110 GlNJ^ WINJ^ WDSPL^ WAG ^ Other^ No. of Completions: 1b. Well Class: Development ^ Exploratory^ Service ^~ StratigraphicTest^ 2. Operator Name: Union Oil Company of California 5. Date Comp , Susp or Aband.: 2/2007 12. Permit to Drill Number: Dom, , 203-074 ' ~ ~~~ 3. Address: P.O. Box 196247, Anchorage, AK 99519 6. Date Spudded: 5/16/2003 13. API Number: 50-133-20523-00-00 4a. Location of Well (Governmental Section): Surface: 1754' FNL & 4030' FEL Sec. 27, T8N, R9W, S.M. 7. Date TD Reached: 6/6/2003 14. Well Name and Number: Swanson River KGSF #3 ^ Top of Productive Horizon: 1701' FNL & 4047' FEL Sec. 27, T8N, R9W, S.M. 8. KB (ft above MSL): 191 Ground (ft MSL): 175 15. Field/Pool(s): Total Depth: 2133' FNL & 4445' FEL Sec. 27, T8N, R9W, S.M. 9. Plug Back Depth(MD+ND): 6281' / 5867' Swanson River Unit Tyonek 62-5 4b. Location of Weil (State Base Plane Coordinates, NAD 27): Surface: x- 348982 y- 2469945 Zone- 4 10. Total Depth (MD + ND): 7920' ! 6253' - 16. Property Designation: FED (A-028406) TPI: x- 348965 y- 2469998 Zone- 4 Total Depth: x- 348567 y- 2469566 Zone- 4 11. SSSV Depth (MD + TVD): N/A 17. Land Use Permit: N/A 18. Directional Survey: Yes ~ No (Submit electronic and printed information per 20 AAC 25.050) 19. Water Depth, if Offshore: N/A (ft MSL) 20. Thickness of Permafrost (ND): N/A 21. Logs Obtained (List all logs here and submit electronic and printed information per 20 AAC 25.071): N/A 22. CASING, LINER AND CEMENTING RECORD CASING WT. PER GRADE SETTING DEPTH MD SETTING DEPTH TVD HOLE SIZE GEMENTING RECORD AMOUNT FT TOP BOTTOM TOP BOTTOM PULLED 13-3/8 68 K-55 0 82 0 82 DRIVEN DRIVEN 0 9-5/8 53.5 L-80 0 2060 0 1995 12-1/4 93 bbls + 18 bbls 0 7 29 L-80 0 7263 0 6244 8-112 170 bbls + 48 bbls 0 23. Open to production or injection? Yes ^ No 0 If Yes, list each 24. TUBING RECORD interval open (MD+TVD of Top & Bottom; Perforation Size and Number): SIZE DEPTH SET (MD) PACKER SET (MD) 3-1/2 7906 6203 25. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED 26. PRODUCTION TEST Date First Production: Method of Operation (Flowing, gas lift, etc.): Date of Test: Hours Tested: Production for Test Period Oil-Bbl: Gas-MCF: Water-Bbl: Choke Size: Gas-Oil Ratio: Flow Tubing Press. Casing Press: Calculated 24-Hour Rate ~ Oil-Bbl: Gas-MCF: Water-Bbl: Oil Gravity -API (corr): 27. CORE DATA Conventional Core(s) Acquired? Yes ^ No ^ Sidewall Cores Acquired? Yes ^ No ^ If Yes to either question, list formations and intervals cored (MD+ND of top and bottom of each), and summarize lithology and presence of oil, gas or water (submit separate sheets with this form, if needed). Submit detailed descriptions, core chips, photographs and laboratory analytical results per 20 AAC 25.071. 10 (Z7 Form 10-407 Revised 2/2007 U R ~ G ~ n `~ ~ONTINUED ON REVERSE '7 {~ 28. GEOLOGIC MARKERS (List all formations and markers encountered): 29. FORMATION TESTS NAME MD TVD Well tested? ^ Yes ^ No If yes list intervals and formations tested , , briefly summarizing test results. Attach separate sheets to this form, if Permafrost -Top needed, and submit detailed test information per 20 AAC 25.071. Permafrost -Base Formation at total depth: 30. List of Attachments: 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact: Stan Porhola Printed Name: Tim Brandenburo Title: Drilling Manager ;~ _.. ~ ..- Signature: ~,~- .,_-, ~ Phone: 263-7640 Date: 10/3/2007 ~-_,~ INSTRUCTIONS General: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Alaska. Submit a well schematic diagram with each 10-407 well completion report and 10-404 well sundry report when the downhole well design is changed. Item 1a: Classification of Service wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water Supply for / njection, Observation, or Other. Multiple completion is defined as a well producing from more than one pool with production from each pool completely segregated. Each segregated pool is a completion. Item 4b: TPI (Top of Producing Interval). Item 8: The Kelly Bushing and Ground Level elevations in feet above mean sea level. Use same as reference for depth measurements given in other spaces on this form and in any attachments. Item 13: The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Item 20: Report true vertical thickness of permafrost in Box 20. Provide MD and TVD for the top and base of permafrost in Box 28. Item 22: Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the cementing tool. Item 23: If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in item 23 show the producing intervals for only the interval reported in item 26. (Submit a separate form for each additional interval to be separately produced, showing the data pertinent to such interval). Item 26: Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-in, or Other (explain). Item 27: Provide a listing of intervals cored and the corresponding formations, and a brief description in this box. Submit detailed description and analytical laboratory information required by 20 AAC 25.071. Item 29: Provide a listing of intervals tested and the corresponding formation, and a brief summary in this box. Submit detailed test and analytical laboratory information required by 20 AAC 25.071. Form 10-407 Revised 2/2007 • Chevron • Swanson River Unit Kenai Gas Storage Facility #3 Actual Schematic 8-22-07 RKB = 191' AMSL CASING & TUBING DETAIL SIZE WT GRADE TOP BOTTOM 13 3/8" 68 K-55 0' 6Y 9-5/8" 53.5 L-80 (BTC) 0' 2060' 7" 29 P-110 & L-80(TKC) 0' 7263' 3 'h" 9.2 L-80 (IBTC SCC) 0' 7363' 3 'h" 9.2 L-80 (IBTC SCC) SS WW Screen 7363' 7906' 1 9 5/8" surface casing @ 2060' MD (cemented to surface) E RY DETAIL JEW L NO. Depth Item 1. 2486' SFO-1 CI Methanol injection port (ID= 2.813") 2. 6203' 7" x 3 ''/z" SAB-3 perm packer, K-22 anchor seal assembly (@ +/-50° inclination) 3. 6243' 3 1/2" `XN' nipple (min. ID = 2.75") 4. 7347' 3 %2" Perf sub (to circulate cement) 7" casing TOC @ 5560' MD / 5211' VD (from temperature log) ABANDONMENT DETAIL NO. Depth Item A. 6281' Cement top on retainer (tagged 8/22/07) B. 7284' Cement Retainer w/ poppet valve C. 7294'-7299' Abandonment Cement Squeezed Below Retainer D. 7308' Cement Retainer (left in hole) E. 7318'-7323' Squeeze holes F. 7339' Coil BHA Fish (8') G. 7347' Tag Hard Fill Top of 62-5 Sand @ 7167' MD / 6236' VD 8 '/z" hole TD @ 7326' MD / 6246' VD 3 C p D ' '.isr:i•r'1iLr~i•i%i~r~i•i~r'viii%r~i.i:i:r:i.i.i:i:r:i•i:r'•i:r 1 1.\•\• \.\•\•\•\•\•\•\•M\•\.\.\•\•\•\.\.\.H\•\.M\•YL• i.r.r.r.r•r•rvr•r•r•r•r• r•r.r.r.r.r•r.r.r.r.r•r.r•r•r•r. ''i.r•r.r.r.r•r•r•r.r.r•r•r•r•r.ry.r.r.r.r.r.r.r~r~rtir.r~r~r; r.r ' . 4.: g G ~ °. . Hydraulic set packer @ +/- 50 mclmat~on for w~relme access I TD 6" hole @ 7920' MD / 6253' VD WBD KGSF#3 Actual 8-22-07.doc DRAWN BY: STP • thevran Daily Summary of Operations r~ L KGSF #3 Plugback and Suspension Swanson River Field, Alaska 8/07/07: PJSM w/ Peak crews. Layout liner and berms for coil tubing operations around wells KGSF #2 and KGSF #3. Move in water and returns tanks. SDFN. 8/08-8/14/07: No Operations at KGSF #3. 8/15/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Chevron general orientation for crews. MIRU Coil tubing unit. Finalize rig up of coil tubing unit. Perform BOP test to 4000/250 psi. Test OK (witness waived by AOGCC). SDFN. 8/16/07: SIMOPS meeting w! Production. PJSM w! Peak and Schlumberger crews. Fill 3-1/2" x 7" annulus and pressure up to 540 psi. Starting tubing- pressure at 600 psi. Circ fresh water down tubing from surface. With 130 bbls away, injection tubing pressure was 2850 psi. Stop injection and shut in well. RU coil injector. Shell test to 3500 psi. Open well and find 0 psi. TIH w/ 1.75" cement nozzle an 1.5" coil and tag up at 7339' CTM. (Coil tubing measurement}. Pulled 2000# over coil weight` Go back to bottom and tag up at 7339' CTM. Pulled 4500# over coil weight. Pump 10 bbl bara,zan pill and start out of hole. At 5500' had pressure spike. Continue POOH. At surface, coil connector had pulled off of coil, leaving coil BHA in hole (Jet nozzle, check valve, coil stiffner). MU new BHA w/ end of tubing tocatar. TIH and locate XN nipple at 6235' CTM (6243' RKBI. RIH to bottom and tag up on coil fish at 7310' CTM (7318' RKB}. Pull to XN nipple and confirm location. POOH w/ coil. SDFN. 8!1?/07: SIMOPS meeting w/ Production. PJSM w! Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. RU coil injector. MU perf BHA (1.56", 60°, 6 spf). Shell test coil to 400(? psi. TIH w/ perf BHA. Set perf guns on depth from 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fail to fire. POOH. Check perf BHA at surface. Re-pin firing head.. TIH w/ perf BHA. Set perf guns on depth from 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fired. POOH w/ Bail. All perfs fired. Tubing pressure 0 psi. 3-U2" x 7" annulus 520 psi. SDFN. 8/18107: SIMOPS meeting wf Production. PJSM w/ Peak and Schlumberger crews. RU injector and shell test to 2500 psi. Pump down tubing from surface at 3 bbUmin at 2550 psi. Prior to perforations, initial circulating rate of 3 bbUmin at 2850 psi. MU EZ-Drill cement retainer. TIH w/ retainer and set at 730(?' CTM. POOH. MU cement stinger BHA and RIH to stab into retainer. Set dawn w! 2000# and attempt to establish injection. Na seal. Set down w/ 5040#, and 10,000# w/ no seal. FU above retainer and test tubing to 2000 psi . and held pressure. Set down. w/ 12,000# w/ no seal.. POOH w/ coil. Tubing pressure 0 psl. 3-1/2" x 7" annulus 400 psi. SDFN. page 1 C~ KGSF #3 Plugback and Suspension Swanson River Field, Alaska 8/19/07: SIMOPS meeting w/ Production. PJSM w/ Peak. Waiting on Thru-Tubing Systems (TTS) service hand to arrive from Louisiana to run 3-1/2" Paragon cement retainer. Clean and prep location. SDFN. 8/20/07: SIMOPS meeting w/ Production. PJSM w/ Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. MU perf BHA (1.56", 60°, 6 spf). She1I test coil to 4000 psi. TIH w/ perf BHA. Set perf guns on depth from 7286' to 7291' CTM. Drop bail and pressure up to fire guns. No indication of guns firing. Troubleshoot guns, drop additional ball and pressure up. Guns fired. POOH.. All perfs fired. MU TTS Paragon single trip cement retainer. Set retainer at 7276' CTM. Set down 4000# and pressure coil annulus to 500 psi. Retainer holding, confirm set. Establish injection w/ fresh water at 1 bbUmin at 2900 psi. Mix and pump 20 bbls LXT 15.8 pv~ cement. Pump cement at 1 bbUmin at 3500 psi. 8121/07: Pump cement down coil w/ 17 bbls away pressure at 3754 psi. At 20 bbls awy pressure was 3554 psi. Squeeze 11 bbls cement below retainer at 7276' w/ squeeze pressure at 3900 psi at 0.9 bbUmin. PU out of retainer and lay 9 bbls cement on top of retainer from 7276' to 6243'. Pump 2 bbls fresh water followed by 10 bbis barazan pill followed by 60 bbls fresh water. Displace w/ fresh water mixed w/ 1°1o Bara-Cor 100 corrosion inhibitor from 6243' to 400'. Blow down coil w/ nitrogen at 300' to displace water for diesel freeze protection cap. RDMO coil. SDFN. 8/22!07: RU Pollard slickline. Pressure test lubricator 2500/250 psi. RIH w! 2"x5' drive down bailer and tag cement at 6281' RKB (SLM). Collect sample and POOH. Had thick white mud in bailer. Smelled of corrosion inhibitor. Pressure up tubing to 2480 psi and chart. Bled down to 2450 psi in 30 minutes. Jeff Jones w/ AOGCC onsite for witness of tag and pressure test. RDMO slickline. SDFN. SSE E~c~\~ ~ ~a~ 0~1 Z~~t~~c page 2 . . MEMORANDUM State of Alaska Alaska Oil and Gas Conservation Commission TO: Jim Regg - CJ - P. I. Supervisor) (1¡-- sl3è..jò 7 DATE: August 21,2007 FROM: Jeff Jones Petroleum Inspector SUBJECT: P&A KGSF #3 Chevron PTD 203-074 ,/ Swanson River Unit August 21, 2007: I traveled to Chevron's Swanson River Unit KGSF #3 gas storage well site to witness the pressure test and wire line tag of a cement plug for temporary abandonment of this well. Bill Applewhite was the Chevron representative for the tests today. The Pollard W/L Co. slick line unit was able to reach a depth of 6281' RKB (RKB=29ft.) and jreturned a sample that appeared to be very thick contaminated mud. There was no sample evidence of cement at this depth and Mr. Applewhite indicated an approximate well bore deviation of 49 degrees and that the thickened mud was contaminated with a Barazan chemical mud additive. The tubing was then pressured up to 2480 PSI and after a well head flange leak was repaired, I noted the pressure dropped 30 PSI in the first 15 min. and 0 PSI in the second 15 min. The IA pressure increased from 400 PSI to 490 PSI and stabilized and the OA remained at 0 PSI throughout the test. In my opinion these tests were inconclusive and it may be necessary for the operator to clean out the contaminated mud above the plug and use a procedure applying more weight to effectively determine plug location and competency. '., ! j i / I I f I I / ¡ // Summary: I witnessed an inconclusive wire line tag and pressure test of a temporary abandonment cement plug at Chevron's gas storage well KGSF #3. .. ~ "'.. .-'." .',. Attachments: None . .¡, "..,~....,w..,~":,.,~."",,,~..,~. ,..". ~L"·. '. .. .. ...,' . ......; libl'~ f1v(ec1LIJ"e. CfL~ -f;,r Note - f{Uj-k~ LC:¡-Jt\ Cc)I/ ~L(bì~ Q ccùrrL6 -Iv C{Pf!bv~9 ~1tl'iP\rdX(- U/¿ / <s L{((t'S') t...\ P~ÇSlA¡-t' .-k..¡ 5l.{ ~ 'cH~;J- \J e", ¡'co~ cJ t 01.". ' ,..finO .?I.' r~ ' ~........ r~,AS Ct\; :l(.~.J-o lU~ tor- r fts)(.V'L 3.·~~ Non-Confidential SCANNED SEP 1 1 2007 P-A SRU KGSF #38-21-07 JJ.doc uuu.u.uaJ..y v~ V'p",.auvu.> ~~uu.... auu TT.J ..I. "'5'" ~ VJ. ¿." . Maunder, Thomas E (DOA) -~-~-_._~_.__._--~..- -_¥_~-- From: Maunder, Thomas E (DOA) Sent: Friday, August 24, 2007 9:04 AM To: 'PORHOLA, STAN r; tzelenka@blm.gov Cc: Harness, Evan; Applewhite, Billy ·APRS [contractor); Jeff Jones Subject: RE: Summary of Operations KGSF #2 (202-119) and #3 (203-074) --t Gentlemen, I have received a report from the Inspector who witnessed pressure tests and plug tagging on these wells. It appears that tags were made, however it also appears that the samples were inconclusive. Following is my assessment of the information I have received. Also, it is requested that the permit to drill number for a well be included in your message titles. That helps with processing and filing. KGSF #3 (203-074) - Based on the pressure test witnessed by Inspector Jones it appears that the deep plugging on this well has been successful. Again, although wireline did reach 6281' md rkb, the sample returned was not conclusi'v'ely determined to be cement. Given tl'le volume of cement listed as placed abO'ýe the retainer, an even shallower tag could be expected. However since the cement needed to displace a barazan pill as it was placed, it is not surprising that the sample determination is inconclusive. The work planned at this time has been completed. Recovery of portions of this well for sidetrack/red rill is planned in the future and the option remains to do additional work should it be determined necessary. A couple of observations, I find it interesting that the first fluid pumped into the well was a barazan pill. As I understand, fluids with barazan are used to contaminate cement preventing it from setting. It is routinely used after placing cement with coil as you have done here to cleanout to a desired cement top. 2nd observation is that the depth given for the 2nd set of perforations is the same as the first which would have been isolated below the 1st retainer set at 7300' ctm. KGSF #2 (202-119) - Based on the operations information, it does not appear that the deep plug has achieved the intended isolation. The pressure test of 8/22 still shows a loss and the recovered sample determination was not conclusive. Based on the approved work plan to use coil tubing for additional plugs, I believed that running in deeper to make a solid tag would not have been a problem and potentially spotting additional cement could be done. However¡ when I spoke with Stan this morning he indicated that the further work would be accomplish with wireline/eline. If Chevron desires to make changes to the operational plan that has already been approved, it will be necessary to submit a revision. Since the objective is to plug and abandon this well, that revision should be submitted to the Commission as a new 403. One question with regard to this well, after the pressure test, were the pressures bled down? If so, has there been any pressure build up noticed? Please provide the current pressures on the well. Call or message with any questions. Tom Maunder, PE AOGCC From: PORHOLA, STAN T [mailto:stan.porhola@chevron.com] Sent: Friday, August 24,20074:28 AM To: Maunder, Thomas E (DOA); tzelenka@blm.gov Cc: Harness, Evan; Applewhite, Billy -APRS [contractor] SUbject: Summary of Operations KGSF #2 and #3 Tom M. and Tom Z., Attached are the weekly summary of operations for KGSF #2 and #3. 8/24/2007 .........LlU....J v. '"'t''''''''UVU'' ..~'U....... ...U... "oJ ..I. U.Õ"" ~ V..l. .., . «Weekly Summary of Ops KGSF-2 Report #2.doc» «Weekly Summary of Ops KGSF-3 Report #1.doc» «Weekly Summary of Ops KGSF-3 Report #2.doc» Stan Porhola Drilling Engineer MidContinent Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com Mail Confidential Footer prtvlleged/(.ontlC1enttal mtormatlon may be contamed m, or attacned to, tnlS message. it you are not tne addressee mdlcated m tnlS message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting meat (907) 263-7640. 8/24/2007 . . Maunder, Thomas E (DOA) _________________~_______·_~_.·m__.__.____~~·___.____.._.___..>____¥____.__. _ .__.~_.__"'____.,___.._~_____.._____.____.._..________.__..w····___k___·__·___·~____ From: Jones, Jeffery B (DOA) Sent: Thursday, August 23, 20075:24 PM To: Maunder, Thomas E (DOA) Cc: Regg, James B (DOA) Subject: KGSF #2 & KGSF #3 abandonement plug tag & pressure test Hi Tom, Yesterday, 8/22/07, I witnessed slickline unit plug tag and pressure test operations on Chevron's Swanson River Field wells KGSF #2 & #3 with Chevron representative Billy Applewhite. ðC ð- - \ \. " KGSF #2: the Pollard W/L slickline unit was able to reach a depth of 4638' RKB (RKB=22ft.) utilizing a weight bar, 2 jars, guage ring and sample catcher assembly which retumed a sample that appeared to be thick mud, possibly slightly contaminated with cement. I could not say if there is hard cement at this depth. The tubing was then pressured up to 2450 psi and the I noted the pressure dropped 100 psi in the first 15 min. and 50 psi in the second 15 ",i,l. Ti,e pres5ur dropped 25 psi each in the next two 15 min intervals and continued at the sarne rate of loss. The IA and OA pressures remained constant throughout the test at 0 psi and 40 psi respectively. Mr. Applewhite indicated to me Chevron plans a permanent abandonement of this well and plans to bullhead cement downhole for the remaining plugs. Since it appeared this P&A procedure has changed significantly from what was approved previously by our office, I asked him to get approval from the AOGCC engineering staff prior to proceeding. "þ õOš-O'1~ KGSF #3: the slickline unit was able to reach a depth of 6281' RKB (RKB=29ft.) and returned a sample that appeared to be very thick (barazan?) contaminated mud. There was no sample evidence of cement at this depth and Mr. Applewhite indicated an approximate wellbore deviation of 49 degrees. The tubing was then pressured up to 2480 psi and after a well head flange leak was repaired, I noted the pressure dropped 30 psi in the first 15 min. and 0 psi in the second 15 min. The IA pressure increased from 400 psi to 490 psi and stabilized and the OA rernained at 0 psi throughout the test. In rny opinion both of the slickline tags seem inconclusive and it may be necessary to clean out the contaminated mud above the plugs and use a procedure applying more weight if we want to effectively determine the plug location and competency. Thanks, and let me know if you need anything else. Jeff 8/24/2007 f1U(j-¿,j-¿UU I HU U I ; ¿q fìn . t' H^ I'll), (( O'-lUC:O . r. U,J 2.. 7¿ - 75l.f~ Chevron Swanson River Field Fax Cover Sheet Date: f</ ~/ 0 7 . I Time: I .' IS ttJVC To: -rDM 11 A/) jt) d.eæ., , L t" 1\ ð <;; c... c- oca Ion:. ¡-t From: g '~t..-f !tff/&JL.:+~ CQver +: 3 ·R¡::~~~, - '. -.. 1,-"C l1. /. .~. .~. > 1t ..1-0 0' ~ /.1/Jr::.., .!"""," , ;.¡ vci ~ ~ 'J,'-' .. '. . 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OOOV_-r..- ~~_~c.-- :;/j~ ~ ~ ~ - ~ =-"=1III8J:;:: .....y~ " ~~__---.c:~~ ,':=:==~-~- ~ ~~ Q¡ ~ -~~oõf$-----..-.::t: - -- ::::-s- =~r- ~ E;: ~--:--1- += - ____ -::;<-¿;:;: ?: ~ ----+'--' , -- /--~--= ~-~---;- _------:,;;j;;- ~ 0'9 --...;....__ ...,...._.~~--'---_~ ~.-----1 ~ - -- --~- O~- s I\) . / ¡ 1-.. . . , I .. ~ Chevron . . KGSF #3 Plug and Abandonment Swanson River Field, Alaska Weeklv Summa" of Operations ~O's -O,\L\ 8/15/07: SIMOPS meeting wi Production. PJSM wi Peak and Schlumberger crews. Chevron general orientation for crews. MIRU Coil tubing unit. Finalize rig up of coil tubing unit. Perform BOP test to 4000/250 psi. Test OK (witness waived by AOGCC). SDFN. 8/16/07: SIMOPS meeting w/ Production. PJSM wI Peak and Schlumberger crews. Fill 3-112" x T' annulus and pressure up to 540 psi. Starting tubing pressure at 600 psi. Circ ftesh water down tubing ftom surface. With 130 bbls away, injection tubing pressure was 2850 psi. Stop injection and shut in well. RU coil injector. Shell test to 3500 psi. Open well and find 0 psi. TIH w/ 1.75" cement nozzle on 1.5" coil and tag up at 7339' CTM. (Coil tubing measurement). Pulled 2000# over coil weight. Go back to bottom and tag up at 7339' crn. Pulled 4500# over coil weight. Pump 10 bbl barazan pill and start out of hole. At 5500' had pressure spike. Continue POOH. At surface, coil connector had pulled off of coil, leaving coil BHA in hole (Jet nozzle, check valve, coil stiffuer). MU new BHA wI end of tubing locator. TIH and locate XN nipple at 6235' CTM (6243' RKB). RIH to bottom and tag up on coil fish at 7310' CTM (7318' RKB). Pull to XN nipple and confirm location. POOH wI coil. SDFN. 8/17/07: SIMOPS meetin g wI Production. PJSM wI Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. RU coil injector. MU perfBHA (1.56",60°,6 spf) . Shell test coil to 4000 psi. TIH wI perfBHA. Set perf guns on depth ftom 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fail to fire. POOH. Check perf BHA at surface. Re-pin firing head. TIH wI perf BHA. Set perf guns on depth ftom 7310' to 7315' CTM. Drop ball and pressure up to fire guns. Guns fired. POOH wI coil. All perfs fired. Tûbing pressure 0 psi. 3-1/2" x 7" annulus 520 psi. SDFN. 8/18/07: SIMOPS meeting wI Production. PJSM w/ Peak and Schlumberger crews. RU injector and shell test to 2500 psi. Pump down tubing ftom surface at 3 bbl/min at 2550 psi. Prior to perforations, initial circulating rate of 3 bbl/min at 2850 psi. MU EZ-Drill cement retainer. TIH wI retainer and set at 7300' CTM. POOH. MU cement stinger BHA and RIH to stab into retainer. Set down w/ 2000# ana attempt to establish injection. No seal. Set down wI 5000#, and 10,000# wI no seal. PU above retainer and test tubing to 2000 psi and held pressure. Set down wI 12,000# Vfl no seal POOH wI coil. Tubing pressure 0 psi. 3-112" x 7" annulus 400 psi. SDFN. 8/19/07: SIMOPS meeting wI Production. PJSM wI Peak. Waiting on Thru- Tubing Systems (TIS) service hand to arrive :&om Louisiana to run 3-1/2" Paragon cement retainer. Clean and prep location. SDFN. 8120/07: SIMOPS meeting w/ Production. PJSM wI Peak and Schlumberger crews. Review coil tubing conveyed perforating safety procedures and explosives safety checklist. MU perf BHA (1.56", 60°, 6 spf) . Shell test coil to 4000 psi. TIH wI perfBHA. Set perf guns on Report #2 page 1 . . KGSF #3 , Plug and Abandonment \-4 Co. ~ \ SCL \- -\-\-;'\~ . ' Swanson River Field, Alaska depth from 7310' to 7315' CTM. D~PfÆí and pressure up to fire guns. No indication of guns fIring. Troubleshoot guns, drop additional ball and pressure up. Guns fired. POOH. All perfs fired. MU TIS Paragon single trip cement retainer. Set retainer at 7276' CTM. Set down 4000# and pressure coil annulus to 500 psi. Retainer holding, confinn set. Esta~lish injection w/ fresh water at 1 bbl/min at 2900 psi. Mix and pump 20 bbls LXT . 15.8 ppg cement. Pump cement at 1 bbl/min at 3500 psi. 8/21/07: Pump cement down coil w/ 17 bbls away pressure at 3750 psi. At 20 bbls awy pressure was 3550 psi. Squeeze 11 bbls cement below retainer at 7276' wI squeeze pressure at 3900 psi at 0.9 bbl/min. PU out of retainer and la~ 9 bbls cement on top of retainer ftom 7276' to 6243'. Pump 2 bbls ftesh water followed by 10 bbls barazan pill followed by 60 bbls fresh water. Displace wi fresh water mixed wi 1% Bara-Cor 100 corrosion inhibitor rom 6243' to 400'. Blow down coil w/ nitrogen at 300' to displace water for diesel freeze plotcC1.ion cap. RDMO coil. SDFN. 8/22/07: RU Pollard slicldine. Pressure test lubricator 2500/250 psi. RIH wI 2"x5' drive down bailer and tag cem~~l' RKß (SLM). Collect sample and POOH. Had thick white mud in bailer. Sme ea of corrosion inhibitor. Pressure up tubing to 2480 psi and chart. Bled down to 2450 psi in 30 minutes. Jeff Jones wi AOGCC onsite for witness of tag and pressure test. RDMO slickline. SDFN. Report #2 page 2 Chevron === . . KGSF #3 Plug and Abandonment Swanson River Field, Alaska Weeklv Summa" of Operations 8/07/07: PJSM w/ Peak crews. Layout liner and berms for coil tubing operations around wells KGSF #2 and KGSF #3. Move in water and returns tanks. SDFN. 8/08-8/14/07: No Operations at KGSF #3. Report #1 page 1 . . Maunder, Thomas E (DOA) From: Sent: To: Cc: Thomas_Zelenka@blm.gov Friday, August 17, 2007 7:34 AM PORHOLA, STAN T Applewhite, Billy -APRS [contractor]; Harness, Evan; Buster, Larry W; Alexander, Steve [TWT]; Maunder, Thomas E (DOA); tzelenka@blm.gov Re: KGSF #3 Plugback Procedure Revision ;)O~-\J'lL\ Subject: Stan, This is as we discussed and it will provide the isolation that is required. We approve this change. Thomas Zelenka, PE BLM, AKSO - Branch of Energy "PORHOLA, STAN T" <stan.porhola@che vron.com> - G 1 'i 'l.\){}1 SC~~Ne:D ~U To 08/16/2007 04:18 PM "Maunder, Thomas E (DOA)" <tom.maunder@alaska.gov>, <tzelenka@blm.gov> ~. cc "Harness, Evan" <eharness@chevron.com>, "Buster, Larry W" <LBuster@chevron.com>, "Applewhite, Billy -APRS [contractor]" <ApplewhiteB@chevron.com>, "Alexander, Steve [TWT)" <Steve.Alexander@chevron.com> Subject KGSF #3 Plugback Procedure Revsion Tom M. and Tom Z., Our coil tubing operations on KGSF #3 have been able to cleanout to 7342' CTM (Coil tubing measurement), which should roughly be above the perf sub at 7347' RKB. We will be running back in the hole with a tubing locator on coil to tie-in our measurements and go back to our last tagged depth. The change from the sundry approvals will be to forgo cleaning the 3-1/2" wire-wrapped liner to TD and not chance sticking our coil tubing and compounding our abandonment in a suspected hole just below the perf sub at 7347' RKB (encountered with coil tubing operations in 2003). Instead, we plan to add squeeze holes with coil just above our last tagged depth of 7347' CTM. This will be followed by setting a 3-1/2" cement retainer on coil and squeezing up to 20 bbls of LXT cement þelow the retainer. After squeezing, the coil will be unstung from the retainer and a 2.6 bbl LXT cement plug will be layed for a desired top of cement of 7000' RKB, about 300' abQve the retainer. The LXT KGSF #3 Plugback procedur.vsion . Page 1 of2 Maunder, Thomas E (DOA) From: Maunder, Thomas E (DOA) Sent: Thursday, August 16, 20074:33 PM To: 'PORHOLA, STAN T; tzelenka@blm.gov Cc: Harness, Evan; Buster, Larry W; Applewhite, Billy -APRS [contractor]; Alexander, Steve [TWT] Subject: RE: KGSF #3 Plugback Procedure Revsion ð-O~-O{ L\ proposal. Tom Maunder, PE AOGCC It appears that your proposed changes will still effect the desired isolation. We have not objection to your S{~ANNED AUG 1 71007 From: PORHOLA, STAN T [mailto:stan.porhola@chevron.com] Sent: Thursday, August 16, 2007 4:18 PM To: Maunder, Thomas E (DOA); tzelenka@blm.gov Cc: Harness, Evan; Buster, Larry W; Applewhite, Billy -APRS [contractor]; Alexander, Steve [TWT] Subject: KGSF #3 Plugback Procedure Revsion Tom M. and Tom Z., Our coil tubing operations on KGSF #3 have been able to cleanout to 7342' CTM (Coil tubing measurement), which should roughly be above the perf sub at 7347' RKB. We will be running back in the hole with a tubing locator on coil to tie-in our measurements and go back to our last tagged depth. The change from the sundry approvals will be to forgo cleaning the 3-1/2" wire-wrapped liner to TD and not chance sticking our coil tubing and compounding our abandonment in a suspected hole just below the perf sub at 7347' RKB (encountered with coil tubing operations in 2003). Instead, we plan to add squeeze holes with coil just above our last tagged depth of 7347' CTM. This will be followed by setting a 3-1/2" cement retainer on coil and squeezing up to 20 bbls of LXT cement below the retainer. After squeezing, the coil will be unstung from the retainer and a 2.6 bbl LXT cement plug will be layed for a desired top of cement of 7000' RKB, about 300' above the retainer. The LXT cement blend will be the same as used for the 1st plug in KGSF #2 (attached). «KGSF-2 Cement Plug#1.doc» Attached is a updated proposed wellbore diagram for the plug back of KGSF #3. «WBD KGSF#3 Proposed Rev1.doc» Stan Porhola Drilling Engineer MidContinent Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com 8/17/2007 . ~V~VŒ (ID~ ~~~~[ß~ . AI',ASIiA.OILA5D GAS CONSBRVATlON COMMISSION SARAH PAUN, GOVERNOR 333 W. 7th AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 F~ (907)276-7542 Timothy Brandenburg Drilling Manager UNOCAL PO Box 196247 Anchorage, AK 99519 sCANNE.D JUL 2 7 2007 Re: Swanson River Field, 62-5 Gas Storage Pool, Swanson River KGSF #3 Sundry Number: 307 -242 Dear Mr. Brandenburg: Enclosed is the approved Application for Sundry Approval relating to the above referenced well. Please note the conditions of approval set out in the enclosed form. When providing notice for a representative of the Commission to witness any required test, contact the Commission's petroleum field inspector at (907) 659-3607 (pager). As provided in AS 31.05.080, within 20 days after written notice of this decision, or such further time as the Commission grants for good cause shown, a person affected by it may file with the Commission an application for rehearing. A request for rehearing is considered timely if it is received by 4:30 PM on the 23rd day following the date of this letter, or the next working day if the 23rd day falls on a holiday or weekend. A person may not appeal a Commission decision to Superior Court unless rehearing has been requested. Sincerely, DATED this ~ay of July, 2007 Encl. :;; O~ -c::rt '-f . . Chevron . Timothy C Brandenburg Drilling Manager Union Oil Company of California P.O. Box 196427 Anchorage, AK 99519-6247 Tel 907 263 7657 Fax 907 263 7884 Email brandenburgt@chevron.com July 16, 2007 RECEIVED JUL 1 8 2007 Alaska Oil & Gas ' . Cans. Comrmssi Anch¡i"<>. ,.~ on 1J~ Q.J ~¡t: Commissioner Alaska Oil & Gas Conservation Commission 333 W. th Avenue Anchorage, Alaska 99501 Re: Sundry Notice of Intent to Plug back and Suspend, KGSF #3, PTD No. 203-074 Dear Commissioner, Enclosed for your review and approval is form 10-403, Application for Sundry Approvals to plug back and suspend the above referenced well. We would like to begin coil tubing operations on July 30, 2007 and appreciate your timely review and approval of this Sundry notice. Please review the attached plug back procedure and well bore diagrams and feel free to contact myself or Stan Porhola at 907-263-7640 if you have any questions. Sincerely, Timothy C. andenburg Drilling Manager TCB: sk Attachments: Form 10-403, Application for Sundry Approvals KGSF #3 Actual Schematic KGSF #3 Planned Plugback and Suspension Schematic KGSF #3 Plug back Procedure Cc: File Union Oil Company of California I A Chevron Company Page 1 of 1 .,.i . (Jrj,,1-1.1s41 ~ STATE'Ó'Þ ALASKA I ~../r,p7 ALASKA Oil AND GAS CONSERVATION COMM SION IF APPLICATION FOR SUNDRY APPROVALS P"\l;>Y.. \VED 8 2007 sion 20 MC 25.280 " """"", 1. Type of Request: Abandon 0 Suspend 0 Operational shutdown 0 Perforate 0 :\WiiilTef[J'" \. '." Other 0 Alter casing 0 Repair well 0 Plug Perforations 0 Stimulate 0 Time Extension 0 Change approved program 0 Pull Tubing 0 Perforate New Pool 0 Re-enter Suspended Well 0 2. Operator Name: 4. Current Well Class: 5. Permit to Drill Number: Union Oil Company of California Development 0 Exploratory 0 203-074 ~ 3. Address: Stratigraphic 0 Service 0 6. API Number: P.O. Box 196247, Anchorage, AK 99519 50-133-20523-00 . 7. If perforating, closest approach in pool(s) opened by this operation to nearest 8. Well Name and Number: property line where ownership or landownership changes: Spacing Exception Required? Yes 0 No 0 Swanson River KGSF #3 - 9. Property Designation: 10. KB Elevation (ft): 11. Field/Pool( s): FED (A-028406) " 16.5' above Gl . Swanson River Unit / 12. PRESENT WELL CONDITION SUMMARY Total Depth MD (ft): Total Depth TVD (ft): Effective Depth MD (ft): Effective Depth TVD (ft): Plugs (measured): Junk (measured): 7920' 6253' 7920' 6253' N/A Casing Length Size MD TVD Burst Collapse Structural Conductor 65' 13-3/8" 65' BGL 65' BGL N/A N/A Surface 2060' 9-5/8" 2060' 1995' 7930 6620 Intermediate Production 7263' 7" 7263' 6245' 8160 7020 Liner 1703' 3-1/2" 7906' 6246' 10,160 10,530 Perforation Depth MD (ft): Perforation Depth TVD (ft): Tubing Size: Tubing Grade: Tubing MD (ft): 7347' - 7920' (WW Screen) 6246' - 6253' (WW Screen) 3-1/2" L-BO 6203' Packers and SSSV Type: Baker SAB-L3 Hydraulic Packer Packers and SSSV MD (ft): 6203' (@ 50.5° inclination) 13. Attachments: Description Summary of Proposal 0 14. Well Class after proposed work: Detailed Operations Program 0 BOP Sketch 0 Exploratory 0 Development 0 Service 0 15. Estimated Date for 7/30/2007 16. Well Status after proposed work: +-. S~~~~d Commencing Operations: Oil 0 Gas 0 Plugged 0 Abandoned 0 17. Verbal Approval: Date: WAG 0 GINJ 0 WINJ 0 WDSPL 0 Commission Representative: 18. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Stan Porhola - 263-7640 Printed Name Timothy C. Brandenburg Title Drilling Manager Signature /·_,-ø 6 PhO~ Date 7-~ 1'1-0::;- /) // COMMISSION USE ONLY Conditions of approval: Notify Commission so that a representative may witness Sundry Number: ('Jf].,.,.. g.Lþ:J Plug Integrity ~ BOP Test 'iJ Mechanical Integrity Test 0 Location Clearance 0 Other: ~QQk~\- M.\iX\~~\~ O..ç. ~aoo?~\ ~\\ Ç>~ Sao~\ 'Q\' RBDMS 8Ft JUt 2 6 2007 APPROVED BY ?..~~ ,ð1- Approved by: /" -'1 'fJMMISSIONER THE COMMISSION Date: Form 10-403 Revised 06/2006 3R 1 r' ll\I'\b- Á a..-'\1Àµ~~,ßubmit in Duplicate 011 ~,.\ ,~ . III Chevron . Swanson River Unit Kenai Gas Storage Facility #3 Actual Schematic 6/10/03 RKB = 191' AMSL SIZE 13 3/8" 9-5/8" WT 68 53.5 29 CASING & TUBING DETAIL GRADE TOP K-55 0' L-80 (BTC) 0' P-110 & L-80 (TKC) 0' BOTTOM 65' 2060' 7263' 7" 3 Yz" 9.2 L-80 (IBTC SCC) 0' 7363' 3 Yz" 9.2 L-80 (IBTC SCe) SS WW Screen 7363' 7906' 1 ~ 95/8" surface casing @ 2060' MD (cemented to surface) NO. 1. 2. Depth 2486' 6203' PROPOSED JEWELRY DETAIL Item SFO-1 CI Methanol injection port (ID= 2.813") 7" x 3 Yz" SAB-3 penn packer, K-22 anchor seal assembly (@ +/-500 inclination) 3 1/2" 'XN' nipple (min. ID = 2.75") 3 Yz" Perf sub (to circulate cement) 3. 4. 6243' 7347' ~ 7" casing TOC @ 5560' MD / 5211' VD (from temperature log) >'7")""""'··"'·"'«<>~ Hy<hauht pacl= @ +/- 500 inclination ;o':e~ ::e;, ~ TD 6" hole @ 7920' MD / L, VD 7" shoe @ 7270' MD 103' below top of reservoir @ 88.50 inclination Top of 62-5 Sand @ 7167' MD / 6236' VD : ::I¡¡¡¡::::::::..,. L 8 Yz" hole TD @ 7326' MD / 6246' VD ··2:-:-:-:-:"" ¡ . . . . . . . . . . . . . . . . . . . . . . . . .. .. 3 ",-::::>: ,::> WBD KGSF#3 ActuaI6-10-03.doc DRAWN BY: STP . === Chevron . Swanson River Unit Kenai Gas Storage Facility #3 Proposed Schematic RKB = 191' AMSL SIZE 13 3/8" 9-5/8" 7" WT 68 53.5 29 CASING & TUBING DETAIL GRADE TOP K-55 0' L-80 (BTC) 0' P-110 & L-80 (TKC) 0' BOTTOM 65' 2060' 7263' 3 W' 9.2 L-80 (IBTC SCC) 0' 7363' 3 W' 9.2 L-80 (IBTC SCC) SS WW Screen 7363' 7906' +- 95/8" surface casing @ 2060' MD (cemented to surface) JEWELRY DETAIL NO. 1. 2. Depth 2486' 6203' Item SFO-l CI Methanol injection port (ID= 2.813") 7" x 3 W' SAB-3 perm packer, K-22 anchor seal assembly (@ +1-50° inclination) 3 1/2" 'XN' nipple (min. ID = 2.75") 3 W' Perf sub (to circulate cement) 3. 4. 6243' 7347' ... 7" casing TOC @ 5560' MD I 5211' VD (from temperature log) ABANDONMENT DETAIL NO. Depth Item A. 7200' Cement top on retainer B. 7300' Cement Retainer wi poppet valve C. 7300'-7920' Abandonment Cement Squeezed Below Retainer A C 7>< Hydmulic set packe, @ +/- 500 mcHnation fo,~:e;'~~'=;;s" ~ TD 6" hole @ 7920' MD / 6253' VD 7" shoe @ 7270' MD 103' below top of reservoir @ 88.5° inclination Top of62-5 Sand @ 7167' MD I 6236' VD WBD KGSF#3 Proposed. doc DRAWN BY: STP Chevron .. ......... ~ · . . Swanson River Unit KGSF #3 Plugback and Suspension Revision #0 7/16/07 OBJECTIVE: · Plugback and Suspension of the KGSF #3 wellbore. Future redrill potential has been identified. PROCEDURE SUMMARY: · Mobilize coil tubing unit and ancillary equipment to KGSF #3. · RU and RIH wi coil tubing cleaning out to the end of~ at 7906' RKB +1-. . hf'Jt,r · RIH wi cement retamer and set at 7300' RKB +1-. · Sting into retainer and squeeze 15.8 ppg LXT abandonment cement below retainer. · Unsting from retainer and lay 100' of cement on top of retainer. · Circulate clean above top of cement (TOC). POOH wi coil and WOC (wait on cement). · RIH wi coil tubing and tag new plugback depth. POOH wi coil tubing. - C-a ",\.oc\--l: "~~,~,, · Prep wellhead and tree for suspension and future redrill potential. \,t...}\,~~ c::;:. · RDMO all equipment. Clean and clear location. \ \'~~~ ~ê~-\. ~\'->~ '"'~ ""\~\~\)~ o~ \5 ~O ??\ 1C-1I\JV.. ~ Y)-'-r KGSF #3 Plugback Objective and Procedure Summary. doc REVISED BY: STP 7/16/07 . . Review of Sundry Application 307-242 Union Oil Company of California Well Swanson River KGSF #3 Swanson River Unit, Upper Tyonek Gas Storage Pool AOGCC Permit 203-074 Requested Action: Union Oil Company of California (Union Oil) proposes to plug the existing perforations and suspend the well for a possible future side track. Recommendation: I recommend approval of Union Oil's request. Discussion: The KGSF #3 well was originally spudded in May 2003 and was completed in July 2003. The well was drilled to be a producer/injector for the Kenai Gas Storage Facility. The well produced for a total of five days and injected for a total of 17 days in October and November 2003. There has been no production or injection activity with this well since that time. The cumulative production and injection was 4,583 mcf and 50,436 mcf of gas respectively. During a phone call on July 19,2007, Mr. Stan Porhola with Union Oil stated that the well is incapable of viable production or injection due to extensive sand production and fill in the wellbore. In the application it states that future redrill potential has been identified for this well. Conclusion: The well is not necessary to meet the overall operations of the Kenai Gas Storage Field, which is evidenced by the fact that the well has not been used for nearly 4 years. Since the gas storage operations occur in a depleted gas reservoir and there has been minimal injection in this wellbore there is very little chance of wasting resources. Therefore, plugging the existing perforations and suspending the well for a possible future sidetrack is a prudent action. D.S. RObY~Þ- Reservoir Engin~ July 19,2007 Cement Volumes for chevroWlls KGSF #2 and KGSF #3 . Page 1 of2 Maunder, Thomas E (DOA) From: PORHOLA, STAN T [stan.porhola@chevron.com] Sent: Friday, July 20, 2007 12:57 PM To: Maunder, Thomas E (DOA) Subject: RE: Cement Volumes for Chevron wells KGSF #2 and KGSF #3 Tom, The cement height was an oversight on my part The top of cement will be to 7000' MD. This would be approximately 2,6 bbl of cement on top of the retainer at 7300' MD (plus the 20 bbl squeezed below the retainer). I'll send a revised cement plan with the volumes once we determine the final cement blend. Bob Carpenter, Chevron Cement specialist from Houston is here in town working on our cement designs for Swanson River and Happy Valley work this year. Stan Porhola Drilling Engineer MidContinent Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage. AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com Mail Confidential Footer Privileged/Confidential information may be contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7640. '-_.._----_._---~"~-_.~----------"---,---_._-------_.------~-----" From: Maunder, Thomas E (DOA) (mailto:tom.maunder@alaska.gov) Sent: Friday, July 20, 2007 12:20 PM To: PORHOLA, STAN T Subject: RE: Cement Volumes for Chevron wells KGSF #2 and KGSF #3 Stan, Further to my review of your plan, I believe it prudent to increase the cement volume planned on top of the retainer. You presently plan a TOC at 7200' md which is - 33' md below the top of the 62-5 sand, Since the reservoir penetration of this well is being abandoned, it seems appropriate to assure coverage of the reservoir top. Based on the reservoir top, it is appropriate to place sufficient cement to give 1 DO' md of coverage above that depth, Please message back with the revised cement volume. Call or message with any questions, Tom Maunder, PE AOGCC 7/20/2007 Cement Volumes for chevroWlls KGSF #2 and KGSF #3 . Page 1 of <l. Maunder, Thomas E (DOA) From: PORHOLA, STAN T [stan.porhola@chevron.com] Sent: Friday, July 20,200712:48 PM To: Maunder, Thomas E (DOA) Subject: RE: Cement Volumes for Chevron wells KGSF #2 and KGSF #3 Thanks Tom, We'll plan to test to at least 1563 psi (= 0.25 psi/ft x 6250' TVD) on the plug back of KGSF #3, Our approximate start date is still July 30th. However, the SLB coil tubing unit is at OSK dock and may be mobilized out to the King Salmon platform for well K-12RD (stuck BHA) where the CUDD Unit is currently mobilized.. We will likely take the coil unit to Swanson River immediately after the K-12RD work. Stan Porhola Drilling Engineer MidContinent Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com Mail Confìdential Footer Privileged/Confidential information may be contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7640. --------.--- ------- From: Maunder, Thomas E (DOA) [mailto:tom,maunder@alaska.gov] Sent: Friday, July 20, 2007 12:10 PM To: PORHOLA, STAN T Subject: RE: Cement Volumes for Chevron wells KGSF #2 and KGSF #3 Stan, I am looking at the sundry for KGSF #3, Tagging the plug as proposed is appropriate. Since it is planned to leave the tubing in place, it is appropriate to pressure test the tubing and annulus to at least .25 psilft x tvd of new cement plug. Accomplishing the pressure tests will aid in classifyint the well as suspended. Call or message with any questions. Tom Maunder, PE AOGCC ---_._-"'-'-------_._~---_.._----------,-,_._._-".~._--------- 7/20/2007 Cement Volumes for chevroWllS KGSF #2 and KGSF #3 . Page 2 of2 From: PORHOLA, STAN T [mailto:stan.porhOla@chevron.com] Sent: Friday, July 20,20079:53 AM To: tzelenka@blm.gov; Maunder, Thomas E (DOA) Cc: Alexander, Steve [TWT]¡ Tony Stafford Subject: Cement Volumes for Chevron wells KGSF #2 and KGSF #3 Tom Z. and Tom M., I am including information on cement volumes for the plug and abandonment of KGSF #2 and plugback of KGSF #3. The blend types will be similar to those used for the plug and abandonment of SCU 41-05 executed in October 2006. Details on the cement additives and mixing fluids is currently being worked with Schlumberger and will be provided to the BLM and AOGCC once available. «KGSF #2 and #3 Cement Planning v2.doc» Stan Porhola Drilling Engineer MidContinent Business Unit Chevron North America Exploration and Production 909 West 9th Avenue Anchorage, AK 99501-3322 Tel 907 263 7640 Fax 907 263 7884 Cell 907 229 1769 porhost@chevron.com Alai! Confidential Footer Privileged/Confidential information may be contained in, or attached to, this message. If you are not the addressee indicated in this message (or responsible for delivery of the message to such person), you may not copy, forward, disclose, deliver, or otherwise use this message or any part of it in any form whatsoever. If you receive the message in error, you should destroy this message after notifying me immediately by replying to the message or contacting me at (907) 263-7640. 7/20/2007 . . Chevron .. IIìjjII GSF #2 Cement Planning Data (Well P&A) Plug #1 Blend: 15.8 ppg Volume: 8 bbls Depth: 5000'-6330' BHT: 144°F Plug #2 Blend: 15.8 ppg LXT Volume: 20 bbls Depth: 4800'-5000' M BHT: 128°F Plug #3 Blend: 15.8 LXT Volume: 6 bbls Depth: 00'-3120' MD (2500'-3120' BHT: 03°F Plu #4 Blend: 15.8 ppg Class G Volume: 50 bbls Depth: 0'-300' MD (0'-300' TVD) BHT: 50°F KGSF #3 Cement Planning Data (Well P&A) 0.0 80.0 2000.0 7860.0 MD ft Plug #1 Blend: 15.8 ppg LXT Volume: 20 bbls (Below retainer) + 1.5 bbls (Above retainer) Depth: 7200'-7920' MD (6242'-6253' TVD) BHT: 144°F ~o..,~Q -..J C \ .,:)M-<è_ ~ Q:. \0 \).J ~~\~r L.\...Co \o\o\~ c..~~fè ~ ~\ (~ ~ðÐO" ') -- <6; '0 ~ '--<:> KGSF #2 and #3 Cement Planning v2.doc 7-20-07 } I fà-~i-- DATA SUBMITTAL COMPLIANCE REPORT 8/1/2005 >flu¿ I~ ~ ~\~1 Permit to Drill 2030740 Well Name/No. SWANSON RIVER KGSF 3 Operator UNION OIL CO OF CALIFORNIA MD 7920 r-- TVD 6253.r- Completion Date 7/11/2003 r- -- - --- ---------- Completion Status GSTOR--- Current Status GSTOR API No. 50-133-20523-00-00 ~ -- - ---- - ----,---. --~ REQUIRED INFORMATION ------------- Mud Log No Samples No -- -~ ~_.- DATA INFORMATION Types Electric or Other Logs Run: MWD/GR--Surface to TO Well Log Information: Log/ Electr Data Digital Dataset Type Med/Frmt Number Name ~ ------ --- Pds ~ Temperature 1- !/ ED 0 Las ED 0 Las Rpt y' ,ED C i~ ! ----- ------ ~rature Log Log Run Scale Media No 2 2 BM \ Pds Directional Survey Directional Survey Directional Survey ,/ Directional Survey 12180 Rate of Penetration .Rate ('If r\.rléfrãtiòn G {'l-- Blu 25 25 Well Cores/Samples Information: Name Interval Start Stop Received Sent Well Cored? ADDITIONAL INFORMATION y(G¡) Daily History Received? Chips Received? ~ Analysis Received? Formation Tops ~ Comments: -- --- ------- -- Directional Survey Yes (data taken from Logs Portion of Master Well Data Maint) Interval OHI Start Stop CH Received Comments 3500 7020 Case 6/23/2003 Temperature Survey - Cement Top Identification - PBMS 3500 7020 Case 6/23/2003 Temperature Survey - Cement Top Identification - PBMS 0 7920 8/5/2003 Schlumberger 0 7920 8/5/2003 Anadrill 0 7920 8/5/2003 Schlumberger 0 7920 8/5/2003 Anadrill 238 7862 Case 8/5/2003 Slim Pulse-Gamma Ray 238 7862 Case 8/5/2003 Slim Pulse-Gamma Ray Sample Set Number Comments ~ ~N ð/N DATA SUBMITTAL COMPLIANCE REPORT 8/1/2005 Permit to Drill 2030740 Well Name/No. SWANSON RIVER KGSF 3 Operator UNION OIL CO OF CALIFORNIA API No. 50-133-20523-00-00 MD 7920 TVD 6253 Completion Date 7/11/2003 Completion Status GSTOR Current Status GSTOR UIC Y ------~~- ~ Date: ------- Compliance Reviewed By: M S~~ r '~' ~ ') Drilling & Measurements 3940 Arctic Boulevard Suite 300 Anchorage AK 99503 Tel (907) 273-1700 Fax (907) 561-8317 Date: Well Name: Company: API Number: AFE Number: Location: Field: Rig: 06-June-03 KGSF#3 Unocal (Alaska Drilling) 50-133-20523-00 160443 Swanson River Swanson River Unit Nabors 129 Drilling and Measurements Field Support: Operations Manager: Field Service Manager: Drilling and Measurements Field Crew: Cell Manager(s): Cell Engineer( s): SERVICES PROVIDED Services Directional Survey Service PowerPulse - Inclination PowerPulse - Gamma Ray SlimPulse- Inclination SlimPulse- Gamma Ray Services Dates 16-May-03 to 06-Jun-03 16-May-03 to 02-Jun-03 16-May-03 to 06-Jun-03 16-May-03 to 06-Jun-03 16-May-03 to 06-Jun-03 OPERATING STATISTICS Total MWD Pumping Time: 193 hr Total MWD Time Below Rotary: 299 hr Total MWD Depth interval: 7682 ft Total MWD Runs: 6 ! t)Cß-07-L Schlumberger AUG Ci L.! " ~";'''I Greg Nutter Gavin ReIlllick Brandon Barnes Mike Dammeyer Vasil y Ageyev þ/ /à,rf) Depth Intervals 238 ft to 7920 ft 238 ft to 7326 ft 238 ft to 7288 ft 7326 ft to 7920 ft 7326 ft to 7865 ft Total L WD Pumping Time: 28 hr Total L WD Time Below Rotary: 52 hr Total LWD depth interval: 594 ft Total L WD Runs: 1 JOB PERFORMANCE Directional MWD Run 001 and 002 surveys were corrected using Schlumberger's D-Mag correction service. The fmal MWD survey point was 7863.32 ft with an inclination of90.58 degrees and an azimuth of220.69 degrees. A survey was projected ahead to TD using an inclination of 90.58 degrees and an azimuth of 220.69 degrees. The [mal bottom hole location is: Measured Depth: True Vertical Depth: Displacement at Azimuth: 7920 ft 6253 ft 562.03 at 227.61 degrees azimuth ~~~,\~ 1 ) ) Formation Evaluation PowerPulse - Gamma Ray was run in 12.25 and 8.5 inch hole sections. This gave the geologist enough information to pick casing points. For the 6 inch hole: Gamma Ray from SlimPulse, was provided in real- time as well as from downhole memory. All measurements were presented in real time. At the conclusion ofMWD run 6, the SlimPulse tool's memory was downloaded and recorded mode logs generated. The final data had good resolution over the logged section. Final data was presented in LAS format and printed PDS logs. The files were generated using the requested formats. The final composite logs and ASCII data were given to the Unocal on site company representative. Transverse Shock Transverse shocks were monitored in the MWD/L WD tools, which were infrequent and low in severity. Service Quality 24 Hz BPSK telemetry was used for the 12.25 and 6 inch hole sections giving 6 bits of data per second creating faster update rates for all the measurement in real-time. Faster surveys were acquired with this type of telemetry resulting in less time spent off bottom. Advantages of this telemetry were more density in the data points per foot, leading to a smoother curve in the real-time gamma ray. Toolface and continuos inclination updates were also faster allowing the DD to have better directional control of the well. There was one problem encountered during the surface test of the MWD tool for run 6. The signal from the SlimPulse tool was much lower than expected at such a shallow depth. It was thought that we might encounter problems once on bottom with signal demodulation, so the decision was made to make all of the available checks and changes to avoid later problems. The tool was pulled out of the hole and the collar . was changed out. During the second surface test the signal reacted similar to that of the first test. The low signal strength was then attributed to the thick recycled oil based mud. Once on bottom new oil based mud was used and no problems with signal demodulation were experienced. Innovation( s) Tools were programmed and the recorded memory data was recovered after the tools had been laid down instead of on the rig floor, decreasing the amount of rig time that needed to be devoted to our tools. Schlumberger Oilfield Services - Drilling & Measurements appreciates the opportunity to provide Unocal (Alaska Drilling) with MWD and LWD services. Sincerely, Brandon Barnes Schlumberger Drilling and Measurements 2 ) ) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION WELL COMPLETION OR RECOMPLETION REPORT AND LOG 5. Date Comp., Susp., or Aband.: 7/11/2003 6. Date Spudded: 5/16/2003 7. Date TD Reached: 6/6/2003 8. KB Elevation (ft): 191' AMSL 9. Plug Back Depth (MD + TVD): 7906'/6253' 10. Total Depth (MD + TVD): 7920'/6253' 11. Depth where SSSV Set: feet MD 1 b. Well Class: I:l Development I:l Exploratory X Service I:l Stratigraphic I:l Test 12. Permit to Drill Number: ). 203~ 0 7'i 'þ.J) 13. API Number~.33_ZDS-23-CO 5~ þh 14. Well Name and Number: KGSF #3 15. Field/Pool(s): Swanson River Field 1 a. Well Status: I:l Oil I:l Gas I:l Plugged I:l Abandoned I:l Suspended I:l WAG No. of completions _ Other X GINJ I:l WINJ I:l WDSPL 2. Operator Name: UNION OIL COMPANY OF CALIFORNIA (UNOCAL) 3. Address: P.O. Box 19-6247 Anchorage, AK 99519-6247 4a. Location of Well (Governmental Section): Surface: 1754' FNL 4030' FEL Sec. 27 T8N R9W SM Top of Productive Horizon: 1701' FNL 4047' FEL Sec. 27 T8N R9W SM Total Depth: 2133' FNL 4445' FEL Sec. 27 T8N R9W SM 4b. Location of Well (State Base Plane Coordinates): Surface: X 348,982.390 Y 2,469,944.760 Zone NAD27 ASP zone 4 TPI: X 348,965.390 Y 2,469,997.760 Zone NAD27 ASP zone 4 Total Depth: X 348,567.260 Y 2,469,565.890 Zone NAD27 ASP zone 4 18. Directional Survey: X Yes I:l No 21. Logs Run: MWD/GR -- surface to TD / 16. Property Designation: Swanson River Production Facility 17. Land Use Permit: n/a 19. Water Depth, if Offshore: feet MSL n/a n/a 20. Thickness of Permafrost: n/a 22. CASING, LINER AND CEMENTING RECORD CASING wr.PER SETTING DEPTH MD SETTI NG DEPTH TVD AMOUNT GRADE HOLE SIZE CEMENTING RECORD SIZE FT. TOP BOTTOM TOP BOTTOM PULLED 7" 29 P-110, L-80 0 7263' 0 6244' 8-112" 93 bbls 13.0 ppg + 18 bbls 15.8 ppg "G" none 9-5/8" 53.5 L-80 0 2060' 0 1994' 12-1/4" 170 bbls 12.8 ppg + 48 bbls 15.8ppg "G" none 13-3/8" 68 K-55 0 65' 0 65' n/a driven none 23. Perforations Open to Production (MD + TVD of Top and Bottom Interval, Size, and Number; if none, state "none"): none (horizontal completion open from 7347' to 7920') _..."...._.........,.~ f, ":: .";; ¡ ~ _~~i./~~. t t.:::¿~~~;::.! 24. SIZE 3-1/2" TUBING RECORD DEPTH SET (MD) 7906' PACKER SET (MD) 6203' 25. ACID FRACTURE CEMENT SQUEEZE DEPTH INTERVAL (MD) AMOUNT AND KIND OF MATERIAL USED n/a n/a 26. Date of first production: "injection" PRODUCTION TEST Date of test: Hrs tested: Prod for test Oil-Bbls: Gas-MCF: 7/11/2003 8.5 period -+ n/a (dry) 743 Flow tbg pres~ Csg press: Calc 24-hour Oil-Bbls: Gas-MCF: 1810 0 rate -+ n/a (dry) 2100 27. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas, or water (attach separate sheet, if necessary). Submit core chips; if none, state "none". none Form 10-407 Revised 7/2003 Method of operation (Flowing, gas lift, etc.): injecting/flowing Water-Bbls: Choke Size Gas-oil ratio n/a n/a Oil Gravity-API (corr): n/a (dry) n/a (dry) Water-Bbls: n/a (dry) ABDMS BFL AUt) 1 1 7.003 ði{YGt~A L \,V 28. . GEOLÓGIC MARKERS FORMATION TL...)S 29. FORMATION TESl ~ ) Include and briefly summarize test results. List intervals tested, and attach detailed supporting data as necessary. If no tests were conducted, state "None". NAME 62-5 30. List of Attachments: MD TVD 7158 The captioned well was drilled and completed as a horizontal drain hole in a depleted gas reservoir (Tyonek 62-5 Sand) to be used for gas storage purposes; as such, no conventional hydrocarbon flow tests were performed 6235 31. I hereby certify that the foregoing is true and correct to the best of my knowledge. Contact Jerry Bowen :~:::::ame~ L Title: Drillin::::~n:::_263_7640 Date 8/1103 INSTRUCTIONS General: Item 1 a: Item 4b: Item 8: Item 13: Item 17: Item 20: Item 22: Item 23: Item 26: Item 27: Item 29: This form is designed for submitting a complete and correct well completion report and log on all types of lands and leases in Classification of Service Wells: Gas Injection, Water Injection, Water-Alternating-Gas Injection, Salt Water Disposal, Water TPI (Top of Producing Interval). The Kelly Bushing elevation in feet above mean low low water. Use same as reference for depth measurements given in other The API number reported to AOGCC must be 14 digits (ex: 50-029-20123-00-00). Used for Exploration wells only. Provide the permit number or ID issued by the landowner for surface operations (DNR, BLM, True vertical thickness. Attached supplemental records for this well should show the details of any multiple stage cementing and the location of the If this well is completed for separate production from more than one interval (multiple completion), so state in item 1, and in Method of Operation: Flowing, Gas Lift, Rod Pump, Hydraulic Pump, Submersible, Water Injection, Gas Injection, Shut-In, If no cores taken, indicate "none". List all test information. If none, state "None". Form 10-407 Revised 7/2003 ) ) UNOCALe Swanson River Unit Kenai Gas Storage Facility #3 Revised Schematic 6/10/03 RKB = 191' AMSL 4 SIZE 13 3/8" 9-5/8" CASING & TUBING DETAIL WT GRADE TOP 68 K-55 0' 53.5 L-80 (BTC) 0' 29 P-II0 & L-80 (TKC) 0' BOTTOM 65' 2060' 7263 ' 7" 3 Yz" 9.2 L-80 (lBTC SCC) 0' 3 Yz" 9.2 L-80 (IBTC SCC) SS WW Screen 7363' 7363' 7906' --I I 1 ;¿ ~~ +- 95/8" surface casing @ 2060' MD (cemented to surface) NO. l. 2. Depth 2486' 6203 ' PROPOSED JEWELRY DETAIL Item SFO-l CI Methanol injection port (ID= 2.813") 7" x 3 Yz" SAB-3 penn packer, K-22 anchor seal assembly (@ +/-50° inclination) 3 1/2" 'XN' nipple (min. ID = 2.75") 3 Yz" Perf sub (to circulate cement) 3. 4. 6243 ' 7347' .. 7" casing TOe @ 5560' MD / 5211' VD (from temperature log) Top of62-5 Sand @ 7167' MD / 6236' VD ,. -:~ 8 \1," hole TO @ 7326' MO 16246' VO lj.¡ I ! .. ," . .. ....... . .... ..............~ 4 :::~:H::::::::::.:::i;i!¡;¡¡~::::JJ / / / / / / / / / / / / / / / / / / // / / / / / / ¡ )~ Hydraulic set packer @ +1- 50° inclination for wireline access ~ ~ TD 6" hole @ 7920' MD 16253' VD 7" shoe @ 7270' MD 103' below top of reservoir @ 88.5° inclination . . KGSF#3 schematic 6-10-03 .doc Drawn: 07/31/03 DRAWN BY: JFB ) ) Kenai Gas Storage Facility (KGSF) #3 Daily Report of Operations 5/5/03 - 5/9/03: Unocal Drilling staff & senior Nabors crew in Well Control School, no field work during this period. 5/10/03: Installed cellar. Drilled mouse hole. Started driving 13 3/8" conductor pipe. 5/11/03: Finished driving 13 3/8" conductor to refusal at 65' BGL. Installed conductor base plate & 4" outlets for cement returns. Graded & compacted location for rig footprint. Hauled remaining rig mats to location. Laid two layers of felt & 24 mm liner. Positioning rig mats & preparing to MI Nabors rig #129. 5/12/03 Started MI & RU Nabors Rig #129 (turnkey rig move). 5/13/03: Oriented new crews & started 24 hr operations. Continued MI & RU Nabors Rig #129. 5/14/03: Installed starting head. NU diverter. Accepted rig at 12:00 hrs on 5/14/03. Started RU TDS. Started mixing WB spud mud. 5/15/03: Continued RU TDS & mixing spud mud. Held pre-spud meeting. RU Anadrill & Epoch sensors. Function tested diverter. Make up 12 '¡4" rotary BRA. 5/16/03: Spudded well at 2:00 hrs on 5/16/03. Cleaned out 13 3/8" conductor & drilled to 238'. paR & L/D BRA #1. P/U 29 stands 4" DP. MIU 12 '¡4" steerable BRA #2. 5/17/03: Drilled 12 '¡4" hole from 238' to 1896'. SD to repair pumps three times (2 hrs total). . 5/18/03: Continued drilling 12 '¡4" hole to 2070' MD /2000' YD. Circ clean & pumped out of the hole. Lay down BRA #2. RIR w/ 48 jts. 9 5/8" 53.5 ppf L-80 BTC csg to 2060'. Cemented csg w/170 bbls of 12.8 ppg lead & 48 bbls (500') of 15.8 ppg tail slurry. Bumped plug & pressure up to 2000 psi. Bled off pressure, floats held. Rad good cmt returns at surface. Clean excess cement out of cellar. 5/19/03: RD casing tools. ND diverter. NU & tested wellhead. NU BOP & choke/kill lines. 5/20/03: Finished NU choke/kill lines & manifoild. Started testing BOP w/ AOGCC witness. Rad leaks at super choke stem & TDS IBOP, started repairing same. 5/21/03: Finished IBOP & choke repairs. Started PU 4" DP. Inspector arrived, paR & completed BOP test to 250/3000 psi. Continued RIR while PU 4" DP. Displaced WBM w/OBM. paR. Tested 9 5/8" casing to 2000 psi for 30 minutes, bled off to 1907 psi, okay. 5/22/03: MU 8 'li" rotary steerable BRA w/ MWD/GR, function test same immediately below surface. RIR PU remainder of required 4" DP. Drilled 9 5/8" shoe track & 20' of new hole to 2090' MD. Conducted LOT (14.3 ppg EMW). Drilled from 2090' to 3263'. 5/23/03: Drilled from 3263' to 4601'. 5/24/03: Drilled from 4601' to 5684'. 5/25/03: Drilled from 5684' to 6273'. Rotary steerable BRA not responding. Circ clean & paR. Found problem, one of three steering pads on rotary steerable tool had blown seal. 5/26103: Make up bad. ') rotary steerable tool & RIH. Drilled. k 6273' to 6993'. 5/27/03: Drilled from 6993' to 7075'. Unable to build angle & land horizontally on target with rotary steerable BHA. POH to PIU standard steerable BHA. Had to back ream from 6060' to 5940' while POH. M/U standard steerable BHA & start RIH to 2063' . 5/28/03: Finished Rlli wi steerable BRA. Drilled from 7075' to landing point at 7326' MD I 6246' YD. (Top of 62-5 sand encountered at 7167' MD I 6236' VD.) C&C hole. Started back reaming out of the hole. [Note: Obtained waiver from AOGCC to postpone weekly BOP test until after 7" casing cemented on +1- 5/30103.] 5/29/03: Finished back reaming & POH. Changed bottom rams to 7" & tested same. RU to run 7" csg. RIH wi 7" 29 ppf L-80 BTC KC casing to +1-4000' 5/30103: Continue runninglwashing 7" casing to 6215', no further progress. POH 5/31103: Cleared rig floor. Changed rams & performed weekly BOP test to 250/3000 psi. RIH wi 8 Y2" (fixed 8 112'" OD) bullnose hole opener. Washed & reamed to 6243', no further progress. POH. 611103: Finished POH. RIH wi 6" bit on steerable BHA wi MWD. Washed & reamed to TD at 7326' MD. POH & beack-reamed to 6345' with difficulty. 6/2/03: Continued back-reaming to 6270', hole packing off. RIH to 7326' TD. Circ & conditioned hole. Raised MW to 9.95 ppg. Pumped out of hole (with minor back- reaming at one point) to 6322'. POH from 6322' to surface without pumping. RU to run 7" casing. 6/3/03: RIH wi 7" 29 ppfL-80 & P-II0 TKC casing to 6236'. Washed & reamed to 6966' . 6/4/03: Continued washing & reaming casing from 6966' to 7263' with difficulty. Circ & condition hole. Cemented 7" casing wi 18 bbls chem. wash, 25 bbls Mud Push, 93 bbls 13 ppg lead cement & 17.7 bbls 15.8 ppg tail cement. Displaced cement wi 269 bbls OBM, plug did not bump, stopped displacing to avoid wet shoe. Had steady partial returns throughout job, lost total 23 bbls OBM. RD cementing equipment. Installed casing pack-off. RU E-line. Ran temp/CCL log. Confirmed TOC at 5560' (lead) & 6100' (tail slurry). RD E-line unit. Changed rams & teted BOP. 6/5/03: Installed wear ring. Performed casing MIT to 3000 psi, bled off 65 psi in 30 minutes. RIH wi 6" steerable BHA wi MWD/GR. Tagged cement at 7100'. Drilled out firm cement from 7100' to 7234'. Re-tested 7" casing to 3000 psi, bled off 600 psi in 6 minutes. SD to discuss options. Re-tested casing & checked for surface leak, same result & no surface leaks found. 616103: Drilled firm cement from 7234' to shoe at 7263'. Changed over to 8.3 ppg CaC030BM. Drilled 6" horizontal hole to TD @ 7920' MD I 6253' YD. Circ hole clean. Started POH LID 4" drill pipe. 6/7/03: Continued LID 4" DP. LID BHA. RU to run 3 12" completion. SD to repair tongs. 6/8/03: Ran 3 12" guide shoe, 543' of 3 12" SS WW screen, aluminum plug, perf sub, float collar, 1 joint 3 12" tubing, landing collar, 3 Y2" 9.2 ppfL-80 IBTC tbg up 6203', SAB-3 packer, 3 12" tbg to surface. Positioned methanol injection port at 2486'. Landed completion wi shoe at 7906'. Circ well clean. Cemented 3 Y2" tubing with 20 bbls 10 ppg Mud Push and 23 bbls 15.8 ppg cement. Displace cement with 66 bbls 8.2 ppg · CaC030BM. Bump( )lug & pressured up to 3500 psi to test) & set packer. Float held pressure. Tested 3 12" x 7" annulus to 1500 psi for 30 minutes, no leak. 6/9/03: Cleaned rig floor. LID Top-Drive unit. Installed BPV. ND BOP. NU 3 1/16" 5m X-mas tree. Changed BPV to TWC valve. Tested tree & hanger seals to 5000 psi. . 6/10103: RID test equipment. Finished cleaning pits. Prepared to LID derrick. Released rig @ 5 :00 hrs on 6/10103 for turnkey move to Happy Valley location. (No activity - waiting on CTU clean-out) 7/3/03: Conduct SIMOPs meeting wi CTU crew & Production personnel. Spotted & RU CTU. RU & tested pump, lines & flowback system. Circulated N2 thru coil, displaced dart & two "Nerf' balls thru coil to ensure ID clear. M/U coil connector & dual BPVs. Tested BOPE to 250/3000 psi. SDFN. 7/4/03: SIMOPS meeting. MIU Baker motor & mill. Stab injector head & secure with chains. Conduct final pressure test to 250/3000 psi. RllI & tagged landing collar at 7305'. Drilled out shoe track, good cement between landing collar & float collar. Drilled out aluminum plate @ 7352' CTM, & RIH to TD at 7895' CTM (no cement inside SS WW screen). Dropped ball to open circ sub & disable PDM. Circ well clean with base oil. POH to 7335'. Held safety meeting & started displacing well with N2 at 7335'. Started POH, hung up briefly in shoe track & in XN nipple, POR pumping N2 until well started to flow. Well flowed 30 minutes with final FTP 470 psi on a 12 open manual choke. SWI to stand back injector head. Production opened well to sales for clean-up at 24:00 hrs. 7/5/03: Operations suspended, Production flowing well for 24 hours. Well flowed between 2.1 & 2.9 MMCFD wi 290 to 350 psi FTP against 180 psi system pressure. 7/6/03: Well flowing same as previous day until 08:00 hrs, then loaded up & died between 08:00 and 13:30 hrs. SWI. Found heavy emulsion with sand fines in separator. SITP 250 psi. 7/7/03: Safety & SIMOPs meetings wi crew & Production personnel. Pull test connector & MIU side-wash nozzle. Stab injector head. SITP 260 psi. RIR to 6200' wlout pumping. At 6200', started pumping diesel & opened well to tame RIH to 6900' & pumped 20 bbls diesel wlout returns, well dead. Switched to 100% N2 & paR to 6900' before establishing returns. RIR to 5700' pumping N2. Recovered 3-5 bbls thick 10.4 ppg emulsion (analyzed to contain 24% solids (LGS & sand fines, 10% base oil % 68% water). POR pumping N2, recovering sludge to 1000'. Stand back injector head & SDFN. 7/8/03: No activity - formulating plan. 7/9/03: Safety & SIMOPs meetings wi crew & Production personnel. Spot batch mixer & mix 3% KCl. Pull test connector & MIU standard wash tip BRA. Stab injector head. Difficulty testing BOPE due to fouled o-ring, repaired same. RIH to 325' & coil came off of side of reel. Attempted to manipulate coil back onto reel, unsuccessful. Cut coil at reel. paR & cut-off sections of coil from well. Break off injector head & secured well for night. Cut-off damaged coil from beside reel. Dressed end of coil, stab thru injector head & installed (& pull tested) connector. SDFN. 7/10103: Safety & SIMOPs meetings wi crew & Production personnel. MID wash tip BRA & stabbed injector head. Shell tested to 250/3000 psi. Rœ pumping nitrified 3% KCL to end of screen, well not flowing. Increased N2/KCI water ratio, well still not · flowing. POH to top t lreen & worked coil in/out of HZ secL )in effort to jet well in. Had problems wi BRA hanging up in shoe track area 7335' to 7360'. Pumped 100% N2 & RIR to 7750' before running out ofN2. POR, well not flowing. Recovered total of +1-6 bbls dark colored water & some sand fines. POR & started RD pump & lines. SDFN. 7/11/03: RD CTU. Conducted 8.5 hr gas injection test. Final injection rate 2.1 MMCFD wi 1810 psi (injection pressure decreasing slowly). FINAL REPORT (plan forward is to inject surplus gas iflwhen available) Comments Measured Inclination Azimuth TVD Sub-Sea TVD Vertical NS EW DLS Northing Easting Latitude Longitude Depth Section ( ft ) ( deg ) ( deg ) (ft) (ft) (ft) (ft) (ft) ( deg/100 ft ) (ftUS) (ftUS) 0.00 0.00 0.00 0.00 -191.00 0.00 0.00 0.00 0.00 2469940.82 348983.09 N 604528.638 W 150 50 39.716 144.80 0.28 69.53 144.80 -46.20 -0.32 0.12 0.33 0.19 2469940.94 348983.42 N 604528.639 W 150 50 39.709 239.70 0.15 154.21 239.70 48.70 -0.48 0.09 0.60 0.32 2469940.90 348983.69 N 604528.638 W 1505039.704 322.72 0.38 126.50 322.72 131 .72 -0.46 -0.17 0.87 0.31 2469940.64 348983.96 N 60 45 28.636 W 150 50 39.699 411 .38 1.18 86.20 411 .37 220.37 -1.15 -0.28 2.02 1.04 2469940.51 348985.10 N 60 45 28.635 W 150 50 39.675 502.07 2.09 78.76 502.02 311 .02 -3.16 0.10 4.57 1.03 2469940.86 348987.66 N 6045 28.639 W 150 50 39.624 ~, 689.32 4.71 77.12 688.93 497.93 -12.24 2.48 15.42 1.40 2469943.10 348998.54 N 604528.662 W 150 50 39.406 784.77 5.88 73.89 783.97 592.97 -19.63 4.71 23.94 1.26 2469945.22 349007.08 N 6045 28.684 W 150 50 39.234 879.50 7.27 73.40 878.07 687.07 -28.91 7.77 34.34 1.47 2469948.15 349017.52 N 60 45 28.714 W 150 50 39.025 975.47 9.13 69.57 973.06 782.06 -40.90 12.16 47.30 2.02 2469952.37 349030.53 N 604528.757 W 150 50 38.764 1070.78 11.19 65.65 1066.87 875.87 -56.13 18.62 62.81 2.28 2469958.62 349046.13 N 60 45 28.821 W 150 50 38.452 1165.91 13.50 61.59 1159.79 968.79 -75.11 27.71 80.99 2.59 2469967.48 349064.42 N 60 45 28.910 W 150 50 38.086 1263.70 15.68 56.87 1254.43 1063.43 -98.69 40.36 102.10 2.54 2469979.86 349085.69 N 60 45 29.035 W 150 50 37.661 1357.48 17.18 53.4 7 1344.38 1153.38 -124.56 55.53 123.84 1.90 2469994.75 349107.62 N 6045 29.184 W 150 50 37.224 1456.46 19.61 51.50 1438.30 1247.30 -155.32 74.58 148.59 2.53 2470013.47 349132.61 N 60 45 29.372 W 150 50 36.726 1549.69 21.81 48.95 1525.50 1334.50 -187.98 95.69 173.90 2.55 2470034.26 349158.19 N 60 45 29.580 W 150 50 36.216 1645.06 22.67 47.28 1613.77 1422.77 -223.90 119.80 200.76 1.12 2470058.01 349185.36 N 604529.817 W 150 50 35.675 1740.70 22.92 46.56 1701.94 1510.94 -260.84 145.11 227.83 0.39 2470082.97 349212.74 N 60 45 30.066 W 150 50 35.131 1836.58 24.20 46.13 1789.83 1598.83 ·299.07 171.56 255.55 1.35 2470109.07 349240.80 N 60 45 30.327 W 150 50 34.573 1934.01 23.13 45.75 1879.06 1688.06 -338.11 198.76 283.66 1.11 2470135.90 349269.25 N 60 45 30.595 W 150 50 34.007 Schlumberger Private Version DO 3.1 RT ( do31 rL399 ) 3.1 RT Service Pack 2.03 KGSF#3\KGSF#3\KGSF#3\KGSF#3 Generated 6/18/2003 3:05 PM Page 1 of 3 ~~ ~ ÞJlchomgB Minimum Curvature I Lubinski 222.450° N 0.000 ft, E 0.000 ft KB 191.0 ft relative to MSL 170.000 ft relative to MSL 20.568° 55479.293 nT 73.594° June 02, 2003 BGGM 2002 True North +20.568° Well Head Ajrlska Ù; K \;,<-, L;C,1S. Cu~m!35ion AU ro. Or. . ,,~\ f' - \.J J ~J LU\U ~~~~:, ~~~ (:; E ¡ \/t: 0 ~03-C7L( Schlumberger 7 -Jun-03 Unocal Swanson River Unit Swanson River I KGSF#3 KGSF#3 KGSF#3 501332052300 KGSF#31 June 7, 2003 175.672° 13546.36 ft 15.897 I 0.567 NAD27 Alaska State Planes, Zone 04, US Feet N 60 45 28.638, W 150 50 39.716 N 2469940.818 ftUS, E 348983.088 ftUS -0.73677566° 0.99992595 Report Date: Client: Field: Structure I Slot: Well: Borehole: UWI/API#: Survey Name I Date: Tort I AHD I DOlI ERD ratio: Grid Coordinate System: Location Lat/Long: Location Grid N/E YIX: Grid Convergence Angle: Grid Scale Factor: KGSF#3 Survey Report Survey I DLS Computation Method: Vertical Section Azimuth: Vertical Section Origin: TVD Reference Datum: TVD Reference Elevation: Sea Bed I Ground Level Elevation: Magnetic Declination: Total Field Strength: Magnetic Dip: Declination Date: Magnetic Declination Model: North Reference: Total Corr Mag North -> True North: Local Coordinates Referenced To: ~, '~..._._.u:"_~~~. !J ::1~ 14,~fj& UNOCAL Comments Measured Inclination Azimuth TVD Sub-Sea TVD Vertical NS EW DLS Northing Easting Depth Section Latitude Longitude ( ft ) ( deg ) ( deg ) (ft ) (ft) ( ft ) ( ft ) (ft ) ( deg/100 ft ) (ftUS) (ftUS) 2007.47 22.77 46.31 1946.71 1755.71 -366.70 218.64 304.27 0.57 2470155.52 349290.12 N 60 45 30.791 W 1505033.592 2063.02 22.49 45.87 1997.98 1806.98 -388.03 233.47 319.67 0.59 2470170.14 349305.71 N 60 45 30.937 W 150 50 33.282 2159.41 23.25 45.11 2086.80 1895.80 -425.43 259.73 346.38 0.85 2470196.05 349332.75 N 604531.195 W 150 50 32.745 2254.83 23.49 45.05 2174.39 1983.39 -463.24 286.46 373.18 0.25 2470222.43 349359.89 N 604531.458 W 1505032.205 2350.64 23.83 45.92 2262.14 2071.14 -501.64 313.41 400.60 0.51 2470249.03 349387.65 N 604531.724 W 1505031.653 2445.69 24.29 45.19 2348.94 2157.94 -540.33 340.55 428.26 0.58 2470275.81 349415.66 N604531.991 W1505031.097 2542.66 24.70 45.77 2437.18 2246.18 -580.48 368.74 456.93 0.49 2470303.62 349444.69 N 604532.269 W 1505030.520 2637.90 25.82 46.49 2523.31 2332.31 -621.04 396.90 486.23 1.22 2470331.40 349474.34 N 60 45 32.546 W 150 50 29.930 ",- 2733.54 25.68 45.70 2609.45 2418.45 -662.50 425.71 516.17 0.39 2470359.82 349504.65 N 60 45 32.830 W 150 50 29.327 2829.12 25.23 45.85 2695.75 2504.75 -703.51 454.36 545.61 0.48 2470388.09 349534.45 N 60 45 33.112 W 150 50 28.735 2924.16 24.61 45.81 2781.95 2590.95 -743.49 482.27 574.33 0.65 2470415.62 349563.53 N 60 45 33.386 W 150 50 28.157 3020.12 23.23 45.68 2869.66 2678.66 -782.33 509.42 602.20 1.44 2470442.41 349591.74 N 6045 33.654 W 150 50 27.596 3115.85 23.30 44.17 2957.61 2766.61 -820.11 536.19 628.90 0.63 2470468.83 349618.78 N 60 45 33.917 W 150 50 27.058 3210.76 23.50 43.16 3044.71 2853.71 -857.79 563.45 654.92 0.47 2470495.76 349645.15 N 60 45 34.186 W 150 50 26.535 3307.06 23.25 43.06 3133.11 2942.11 -895.99 591.35 681 .03 0.26 2470523.31 349671.61 N 60 45 34.461 W 1505026.009 3401.98 23.33 44.73 3220.30 3029.30 -933.51 618.39 707.05 0.70 2470550.02 349697.98 N 60 45 34.727 W 150 50 25.485 3497.53 23.29 46.73 3308.05 3117.05 -971.25 644.78 734.12 0.83 2470576.05 349725.38 N 604534.987 W 150 50 24.940 3593.30 23.47 47.30 3395.95 3204.95 -1009.13 670.69 761.92 0.30 2470601.60 349753.51 N 604535.242 W 150 50 24.381 3689.89 23.92 45.96 3484.40 3293.40 -1047.84 697.34 790.13 0.73 2470627.89 349782.06 N 604535.504 W 1505023.813 3785.82 23.50 45.99 3572.23 3381.23 -1086.35 724.15 817.87 0.44 2470654.34 349810.14 N 60 45 35.768 W 150 50 23.255 3880.41 22.43 45.58 3659.33 3468.33 -1123.19 749.89 844.32 1.14 2470679.73 349836.92 N 604536.022 W 1505022.722 3977.20 21.53 44.21 3749.08 3558.08 -1159.38 775.54 869.89 1.07 2470705.05 349862.82 N 60 45 36.274 W 150 50 22.208 4071.43 20.62 42.54 3837.01 3646.01 -1193.25 800.16 893.17 1.16 2470729.37 349886.41 N 604536.517 W 1505021.739 4168.08 20.57 39.47 3927.48 3736.48 -1227.23 825.81 915.47 1.12 2470754.72 349909.03 N 604536.769 W 1505021.290 ,,-. 4263.24 20.98 34.33 4016.46 3825.46 -1260.79 852.78 935.71 1.96 2470781.44 349929.61 N 604537.035 W 1505020.883 4359.90 21.58 30.16 4106.54 3915.54 -1295.29 882.45 954.40 1.68 2470810.85 349948.68 N 60 45 37.327 W 150 50 20.507 4453.53 21.88 25.94 4193.52 4002.52 -1328.85 913.02 970.68 1.70 2470841.22 349965.35 N 6045 37.628 W 150 50 20.179 4549.46 19.47 20.16 4283.27 4092.27 -1360.79 944.11 984.01 3.29 2470872.13 349979.08 N 60 45 37.934 W 150 5019.910 4646.05 17.54 16.10 4374.87 4183.87 -1388.73 973.21 993.60 2.40 2470901.10 349989.04 N 604538.221 W 15050 19.717 4741.68 15.75 11.12 4466.49 4275.49 -1412.73 999.80 1000.10 2.39 2470927.60 349995.88 N 604538.483 W 150 50 19.586 4838.86 12.91 1.17 4560.66 4369.66 -1432.16 1023.60 1002.87 3.86 2470951.36 349998.96 N 60 45 38.717 W 150 5019.531 4932.30 9.56 344.04 4652.32 4461.32 -1444.08 1041.51 1000.94 5.02 2470969.29 349997.26 N 60 45 38.893 W 150 50 19.569 5027.22 7.69 319.86 4746.19 4555.19 -1449.03 1053.94 994.68 4.25 2470981.81 349991.16 N 604539.016 W 150 5019.695 5123.54 11.72 301.14 4841 .13 4650.13 -1447.94 1 063.94 982.14 5.26 2470991.96 349978.76 N 604539.114 W 150 5019.948 5220.25 14.43 281.88 4935.37 4744.37 -1439.88 1071.50 961.93 5.27 2470999.78 349958.64 N 60 45 39.189 W 150 50 20.355 5315.12 15.66 262.83 5027.05 4836.05 -1424.10 1072.34 937.64 5.35 2471000.93 349934.37 N 60 45 39.197 W 150 50 20.843 Schlumberger Private Version DO 3.1 RT ( do31 rC399 ) 3.1 RT Service Pack 2.03 KGSF#3\KGSF#3\KGSF#3\KGSF#3 Generated 6/18/2003 3:05 PM Page 2 of 3 Generated 6/18/2003 3:05 PM Page 3 of 3 Schlumberger Private KGSF#3\KGS F#3\KGSF#3\KGSF#3 Version DO 3.1 RT ( do31 11_399) 3.1 RT Service Pack 2.03 Comments Measured Inclination Azimuth TVD Sub-Sea TVD Vertical NS EW DLS Northing Easting Latitude Longitude Depth Section (ft) ( deg ) ( deg ) (ft) ( ft ) (ft) (ft) ( ft ) ( deg/100 ft ) (ftUS) (ftUS) 5411 .02 16.45 245.02 5119.26 4928.26 -1401.69 1064.98 912.48 5.18 2470993.90 349909.12 N 60 45 39.125 W 1505021.350 5506.80 16.85 228.59 5211.08 5020.08 -1375.35 1050.07 889.76 4.92 2470979.28 349886.21 N 604538.978 W 15050 21.807 5602.84 18.74 226.89 5302.52 5111.52 -1346.13 1030.31 868.06 2.04 2470959.81 349864.26 N 60 45 38.783 W 150 50 22.244 5697.51 20.92 226.38 5391.57 5200.57 -1314.10 1 008.26 844.72 2.31 2470938.06 349840.63 N 604538.566 W 150 50 22.714 5792.73 25.95 228.38 5478.91 5287.91 -1276.39 982.68 816.82 5.35 2470912.84 349812.41 N 604538.314 W 1505023.276 5888.87 32.61 228.88 5562.72 5371.72 -1229.67 951.63 781 .54 6.93 2470882.25 349776.74 N 60 45 38.008 W 150 50 23.986 5984.07 35.45 226.63 5641.61 5450.61 -1176.64 915.80 742.13 3.26 2470846.93 349736.88 N 604537.656 W 1505024.779 6079.49 38.69 224.57 5717.74 5526.74 -1119.22 875.54 701.08 3.64 2470807.20 349695.31 N 604537.259 W 1505025.605 6176.35 41.72 222.60 5791.71 5600.71 -1056.72 830.23 658.00 3.39 2470762.46 349651.66 N 60 45 36.813 W 150 50 26.472 f--- 6223.99 43.20 223.24 5826.85 5635.85 -1024.56 806.68 636.10 3.24 2470739.19 349629.46 N 604536.581 W 1505026.913 6272.01 46.13 223.77 5861.00 5670.00 -990.81 782.21 612.86 6.15 2470715.02 349605.91 N 604536.340 W 150 50 27.381 6305.16 47.73 223.83 5883.64 5692.64 -966.60 764.73 596.10 4.83 2470697.76 349588.93 N 604536.168 W 150 50 27.718 6367.06 50.50 223.73 5924.15 5733.15 -919.82 730.94 563.73 4.48 2470664.40 349556.12 N 60 45 35.835 W 150 50 28.370 6463.19 55.70 223.42 5981.85 5790.85 -842.99 675.26 510.76 5.42 2470609.41 349502.45 N 60 45 35.287 W 150 50 29.436 6560.03 59.92 222.93 6033.43 5842.43 -761.06 615.51 454.70 4.38 2470550.38 349445.63 N 60 45 34.699 W 150 50 30.564 6654.50 65.04 222.27 6077.07 5886.07 -677.31 553.85 398.02 5.45 2470489.46 349388.17 N 604534.091 W 150 50 31.705 6750.57 67.25 221.46 6115.92 5924.92 -589.46 488.42 339.39 2.43 2470424.79 349328.71 N 6045 33.447 W 150 50 32.885 6846.59 69.06 221.23 6151.64 5960.64 -500.35 421.51 280.52 1.90 2470358.65 349268.98 N 60 45 32.788 W 150 50 34.070 6936.80 71.65 220.67 6181.97 5990.97 -415.43 357.34 224.85 2.93 2470295.21 349212.49 N 604532.156 W 1505035.191 6976.99 72.66 220.98 6194.29 6003.29 -377.19 328.39 199.84 2.62 2470266.59 349187.11 N 60 45 31.871 W 150 50 35.694 7022.91 74.48 221.95 6207.27 6016.27 -333.15 295.39 170.67 4.45 2470233.97 349157.53 N 604531.546 W 150 50 36.281 7096.66 76.78 221.45 6225.58 6034.58 -261.72 242.05 123.15 3.19 2470181.25 349109.33 N 604531.021 W 1505037.238 7189.52 84.36 220.38 6240.78 6049.78 -170.22 172.87 63.21 8.24 2470112.85 349048.51 N 60 45 30.340 W 150 50 38.444 7246.63 87.94 220.96 6244.61 6053.61 -113.27 129.66 26.08 6.35 2470070.12 349010.83 N 604529.914 W 150 50 39.191 f~· 7283.31 88.97 221.40 6245.60 6054.60 -76.62 102.07 1.94 3.05 2470042.84 348986.34 N 6045 29.643 W 150 50 39.677 7322.91 89.66 221.63 6246.08 6055.08 -37.03 72.42 -24.31 1.84 2470013.54 348959.71 N 604529.351 W 1505040.205 7367.70 89.52 221 .82 6246.40 6055.40 7.76 38.99 -54.12 0.53 2469980.50 348929.48 N 604529.021 W 150 5040.805 7411 .49 88.94 220.48 6246.98 6055.98 51.53 6.02 -82.93 3.33 2469947.90 348900.25 N 60 45 28.697 W 150 50 41.385 7463.26 89.55 221 .13 6247.67 6056.67 103.28 -33.16 -116.76 1.72 2469909.16 348865.92 N 604528.311 W 1505042.066 7557.72 88.25 220.70 6249.48 6058.48 197.68 -104.53 -178.61 1.45 2469838.60 348803.16 N 604527.608 W 150 5043.311 7653.57 88.77 221 .22 6251.97 6060.97 293.47 -176.89 -241.42 0.77 2469767.06 348739.43 N 60 45 26.896 W 150 50 44.575 7749.79 89.14 220.29 6253.73 6062.73 389.63 -249.76 -304.23 1.04 2469695.01 348675.70 N 60 45 26.178 W 150 50 45.839 7846.94 90.65 220.95 6253.91 6062.91 486.73 -323.50 -367.47 1.70 2469622.09 348611.51 N 604525.452 W 1505047.112 7863.32 90.58 220.69 6253.73 6062.73 503.10 -335.90 -378.18 1.64 2469609.84 348600.65 N 604525.330 W 150 50 47.327 7920.00 90.58 220.69 6253.16 6062.16 559.75 -378.87 -415.13 0.00 2469567.34 348563.15 N 60 45 24.907 W 150 50 48.071 ANADRILL SCRLUMBERGER Survey report Client...................: Unocal (Alaska Drilling) Field. . . . . . . . . . . . . . . . . . . .: Swanson River Unit Well. . . . . . . . . . . . . . . . . . . . .: KGSF#3 API number...............: 50-133-20523-00 Engineer. . . . . . . . . . . . . . . . .: B.Barnes COUNTY: . . . . . . . . . . . . . . . . . .: Nabors 129 STATE: . . . . . . . . . . . . . . . . . . .: Alaska ----- Survey calculation methods------------- Method for positions.....: Minimum curvature Method for DLS.. . . . . . . . . .: Mason & Taylor ----- Depth reference ----------------------- Permanent datum..........: Mean Sea Level Depth reference..........: Driller's Pipe Tally GL above permanent.......: 175.00 ft KB above permanent.......: n/a ft DF above permanent.......: 191.00 ft ----- Vertical section origin---------------- Latitude (+N/S-).........: 0.00 ft Departure (+E/W-) ........: 0.00 ft ----- Platform reference point--------------- Latitude (+N/S-).........: -999.25 ft Departure (+E/W-)........: -999.25 ft Azimuth from rotary table to target: 222.45 degrees [(c)2003 Anadrill IDEAL ID6_1C_10] ~~, ,\^ .~ 7-Jun-2003 03:14:32 Spud date. . . . . . . . . . . . . . . . : Last survey date.... .....: Total accepted surveys...: MD of first survey... ....: MD of last survey.. ......: /tjO-¿'-U t·1. Page 1 of 5 16-May-2003 07-Jun-03 91 0.00 ft 7920.00 ft ~ ----- Geomagnetic data ---------------------- Magnetic model...... .....: BGGM version 2002 Magnetic date. ...... .....: 17-May-2003 Magnetic field strength..: 1109.58 RCNT Magnetic dec (+E/W-).....: 20.58 degrees Magnetic dip. ............: 73.59 degrees ----- MWD survey Reference Reference G........... ...: Reference H.. ............: Reference Dip............: Tolerance of G.. .... .....: Tolerance of H...........: Tolerance of Dip.........: Criteria --------- 1002.02 mGal 1109.58 HCNT 73.59 degrees (+1-) 2.50 mGal (+1-) 6.00 HCNT (+1-) 0.45 degrees ----- Corrections --------------------------- Magnetic dec (+E/W-).. ...: 20.58 degrees Grid convergence (+E/W-).: 0.00 degrees Total az corr (+E/W-) ....: 20.58 degrees (Total az corr = magnetic dec - grid conv) Sag applied (Y/N).. ......: No degree: 0.00 .-.-' RECE\VED f, ¡!n 0 C~ 2.003 í'·'¡ \) 'V V hiAe,\'j4 (~~ §it r:,as C;Qiì5. Comm~ M1a:~1\~ VII ~ V 't:P Þ"i'\ç,'1or~ ANADRILL SCHLUMBERGER Survey Report 7-Jun-2003 03:14:32 Page -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- Seq Measured # depth (ft) Incl angle (deg) Azimuth angle (deg) Course length (ft) TVD depth (ft) Vertical section (ft) Displ +N/S- (ft) Displ +E/W- (ft) Total displ (ft) At Azim (deg) -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 0.00 144.80 239.70 322.72 411.38 0.00 0.28 0.15 0.38 1.18 2.09 4.71 5.88 7.27 9.13 11.19 13.50 15.68 17.18 19.61 21.81 22.67 22.92 24.20 23.13 22.77 22.49 23.25 23.49 23.83 24.29 24.70 25.82 25.68 25.23 0.00 69.53 154.21 126.50 86.20 78.76 77.12 73.89 73.40 69.57 65.65 61.59 56.87 53.47 51.50 48.95 47.28 46.56 46.13 45.75 46.31 45.87 45.11 45.05 45.92 45.19 45.77 46.49 45.70 45.85 0.00 144.80 94.90 83.02 88.66 90.69 187.25 95.45 94.73 95.97 95.31 95.13 97.79 93.78 98.98 93.23 95.37 95.64 95.88 97.43 73.46 55.55 96.39 95.42 95.81 95.05 96.97 95.24 95.64 95.58 [(c)2003 Anadrill IDEAL ID6_1C_10J 502.07 689.32 784.77 879.50 975.47 1070.78 1165.91 1263.70 1357.48 1456.46 1549.69 1645.06 1740.70 1836.58 1934.01 2007.47 2063.02 2159.41 2254.83 2350.64 2445.69 2542.66 2637.90 2733.54 2829.12 0.00 144.80 239.70 322.72 411.37 502.02 688.93 783.97 878.07 973.06 1066.87 1159.79 1254.43 1344.38 1438.30 1525.50 1613.77 1701.94 1789.83 1879.06 1946.71 1997.98 2086.80 2174.39 2262.14 2348.94 2437.18 2523.31 2609.45 2695.75 0.00 -0.32 -0.48 -0.46 -1.15 -3.16 -12.24 -19.63 -28.91 -40.90 -56.13 -75.11 -98.69 -124.56 -155.32 -187.98 -223.90 -260.84 -299.07 -338.11 -366.70 -388.03 -425.43 -463.24 -501.64 -540.33 -580.48 -621.04 -662.50 -703.51 0.00 0.12 0.09 -0.17 -0.28 0.10 2.48 4.71 7.77 12.16 18.62 27.71 40.36 55.53 74.58 95.69 119.80 145.11 171.56 198.76 218.64 233.47 259.73 286.46 313.41 340.55 368.74 396.90 425.71 454.36 0.00 0.33 0.60 0.87 2.02 4.57 15.42 23.94 34.34 47.30 62.81 80.99 102.10 123.84 148.59 173.90 200.76 227.83 255.55 283.66 304.27 319.67 346.38 373.18 400.60 428.26 456.93 486.23 516.17 545.61 0.00 0.35 0.61 0.89 2.04 4.57 15.62 24.39 35.21 48.84 65.51 85.60 109.79 135.72 166.26 198.49 233.79 270.11 307.80 346.36 374.68 395.85 432.94 470.45 508.63 547.16 587.15 627.65 669.07 710.02 0.00 69.53 81.23 100.95 97.98 88.73 80.86 78.86 77.25 75.58 73.49 71.11 68.43 65.85 63.35 61.18 59.18 57.51 56.12 54.98 54.30 53.86 53.14 52.49 51.96 51.51 51.10 50.78 50.49 50.21 2 of 5 DLS (deg/ 100f) 0.00 0.19 0.32 0.31 1.04 1.03 1.40 1.26 1.47 2.02 2.28 2.59 2.54 1.90 2.53 2.55 1.12 0.39 1.35 1.11 0.57 0.59 0.85 0.25 0.51 0.58 0.49 1.22 0.39 0.48 ------ ------ Srvy tool type Tool qual type ------ ------ TIP DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG DMAG DMAG DMAG DMAG Corrected Corrected Corrected Corrected Corrected '"-" DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected .,,-, Inter. Azimuth DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected ANADRILL SCHLUMBERGER Survey Report 7-Jun-2003 03:14:32 Page -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- Seq Measured # depth (ft) Incl angle (deg) Azimuth angle (deg) Course length (ft) TVD depth (ft) Vertical section (ft) Displ +N/S- (ft) Displ +E/W- (ft) Total displ (ft) At Azim (deg) -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 2924.16 3020.12 3115.85 3210.76 3307.06 3401.98 3497.53 3593.30 3689.89 3785.82 3880.41 3977.20 4071.43 4168.08 4263.24 4359.90 4453.53 4549.46 4646.05 4741.68 4838.86 4932.30 5027.22 5123.54 5220.25 5315.12 5411.02 5506.80 5602.84 5697.51 24.61 23.23 23.30 23.50 23.25 23.33 23.29 23.47 23.92 23.50 22.43 21.53 20.62 20.57 20.98 21.58 21.88 19.47 17.54 15.75 12.91 9.56 7.69 11.72 14.43 15.66 16.45 16.85 18.74 20.92 45.81 45.68 44.17 43.16 43.06 44.73 46.73 47.30 45.96 45.99 45.58 44.21 42.54 39.47 34.33 30.16 25.94 20.16 16.10 11.12 1.17 344.04 319.86 301.14 281.88 262.83 245.02 228.59 226.89 226.38 95.04 95.96 95.73 94.91 96.30 94.92 95.55 95.77 96.59 95.93 94.59 96.79 94.23 96.65 95.16 96.66 93.63 95.93 96.59 95.63 97.18 93.44 94.92 96.32 96.71 94.87 95.90 95.78 96.04 94.67 [(c)2003 Anadrill IDEAL ID6_1C_10] 2781.95 2869.66 2957.61 3044.71 3133.11 3220.30 3308.05 3395.95 3484.40 3572.24 3659.33 3749.08 3837.01 3927.48 4016.46 4106.54 4193.52 4283.27 4374.87 4466.49 4560.65 4652.32 4746.19 4841.13 4935.37 5027.05 5119.26 5211.08 5302.52 5391.57 -743.49 -782.33 -820.11 -857.79 -895.99 -933.51 -971.25 -1009.13 -1047.84 -1086.35 -1123.19 -1159.38 -1193.25 -1227.23 -1260.79 -1295.29 -1328.85 -1360.79 -1388.73 -1412.73 -1432.16 -1444.08 -1449.03 -1447.94 -1439.88 -1424.10 -1401.69 -1375.35 -1346.13 -1314.10 482.27 509.42 536.19 563.45 591.35 618.39 644.78 670.69 697.34 724.15 749.89 775.54 800.16 825.81 852.78 882.45 913.02 944.11 973.21 999.80 1023.60 1041.51 1053.94 1063.94 1071.50 1072.34 1064.98 1050.07 1030.31 1008.26 574.33 602.20 628.90 654.92 681.03 707.05 734.12 761.92 790.13 817.87 844.32 869.89 893.17 915.47 935.71 954.40 970.68 984.01 993.60 1000.10 1002.87 1000.94 994.68 982.14 961.93 937.64 912.48 889.76 868.06 844.72 749.96 788.76 826.44 863.94 901.94 939.32 977.07 1015.06 1053.85 1092.39 1129.25 1165.41 1199.17 1232.90 1266.01 1299.84 1332.60 1363.68 1390.82 1414.14 1433.00 1444.51 1449.20 1447.95 1439.94 1424.46 1402.43 1376.34 1347.25 1315.34 49.98 49.77 49.55 49.29 49.03 48.83 48.71 48.64 48.57 48.48 48.39 48.28 48.14 47.95 47.65 47.24 46.75 46.19 45.59 45.01 44.41 43.86 43.34 42.71 41.92 41.17 40.59 40.28 40.11 39.96 3 of 5 DLS (deg/ 100f) 0.65 1.44 0.63 0.47 0.26 0.70 0.83 0.30 0.73 0.44 1.14 1.07 1.16 1.12 1.96 1.68 1.70 3.29 2.40 2.39 3.86 5.02 4.25 5.26 5.27 5.35 5.18 4.92 2.04 2.31 ------ ------ Srvy tool type Tool qual type ------ ------ DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected ~ DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected -' DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected ANADRILL SCHLUMBERGER Survey Report -------- ------ -------- ------ Seq Measured # depth (ft) Incl angle (deg) 7-Jun-2003 03:14:32 Page ------- ------ -------- -------- ---------------- --------------- ------- ------ -------- -------- ---------------- --------------- Azimuth angle (deg) Course length (ft) TVD depth (ft) Vertical section (ft) Displ +N/S- (ft) Displ +E/W- (ft) Total displ (ft) At Azim (deg) -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 5792.73 5888.87 5984.07 6079.49 6176.35 6223.99 6272.01 6305.16 6367.06 6463.19 6560.03 6654.50 6750.57 6846.59 6936.80 6976.99 7022.91 7096.66 7189.52 7246.63 7283.31 7322.91 7367.70 7411.49 7463.26 7557.72 7653.57 7749.79 7846.94 7863.32 25.95 32.61 35.45 38.69 41.72 43.20 46.13 47.73 50.50 55.70 59.92 65.04 67.25 69.06 71.65 72.66 74.48 76.78 84.36 87.94 88.97 89.66 89.52 88.94 89.55 88.25 88.77 89.14 90.65 90.58 228.38 228.88 226.63 224.57 222.60 223.24 223.77 223.83 223.73 223.42 222.93 222.27 221.46 221.23 220.67 220.98 221.95 221.45 220.38 220.96 221.40 221.63 221.82 220.48 221.13 220.70 221.22 220.29 220.95 220.69 95.22 96.14 95.20 95.42 96.86 47.64 48.02 33.15 61.90 96.13 96.84 94.47 96.07 96.02 90.21 40.19 45.92 73.75 92.86 57.11 36.68 39.60 44.79 43.79 51.77 94.46 95.85 96.22 97.15 16.38 [(c)2003 Anadrill IDEAL ID6_1C_l0J 5478.91 5562.72 5641.61 5717.74 5791.71 5826.85 5861.00 5883.64 5924.15 5981.85 6033.43 6077.07 6115.92 6151.64 6181.97 6194.29 6207.27 6225.58 6240.78 6244.61 6245.60 6246.08 6246.40 6246.98 6247.67 6249.48 6251.97 6253.73 6253.91 6253.73 -1276.39 -1229.67 -1176.64 -1119.22 -1056.72 -1024.56 -990.81 -966.60 -919.82 -842.99 -761.06 -677.31 -589.46 -500.35 -415.43 -377.19 -333.15 -261.72 -170.22 -113.27 -76.62 -37.03 7.76 51.53 103.28 197.68 293.47 389.63 486.73 503.10 982.68 951.63 915.80 875.54 830.23 806.68 782.21 764.73 730.94 675.26 615.51 553.85 488.42 421.51 357.34 328.39 295.39 242.05 172.87 129.66 102.07 72.42 38.99 6.02 -33.16 -104.53 -176.89 -249.76 -323.50 -335.90 816.82 781.54 742.13 701.08 658.00 636.10 612.86 596.10 563.73 510.76 454.70 398.02 339.39 280.52 224.85 199.84 170.67 123.15 63.21 26.08 1.94 -24.31 -54.12 -82.93 -116.76 -178.61 -241.42 -304.23 -367.47 -378.18 1277.83 1231.42 1178.75 1121.64 1059.36 1027.31 993.70 969.61 923.07 846.67 765.25 682.03 594.76 506.32 422.20 384.42 341.15 271.58 184.07 132.26 102.08 76.39 66.70 83.15 121.38 206.95 299.29 393.62 489.58 505.81 39.73 39.39 39.02 38.69 38.40 38.26 38.08 37.94 37.64 37.10 36.46 35.70 34.79 33.64 32.18 31.32 30.02 26.97 20.08 11.37 1.09 341.44 305.77 274.15 254.14 239.66 233.77 230.61 228.64 228.39 4 of 5 DLS (deg/ 100f) 5.35 6.93 3.26 3.64 3.39 3.24 6.15 4.83 4.48 5.42 4.38 5.45 2.43 1.90 2.93 2.62 4.45 3.19 8.24 6.35 3.05 1.84 0.53 3.33 1.72 1.45 0.77 1.04 1.70 1.64 Srvy tool type ------ ------ Tool qual type ------ ------ DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected DMAG Corrected MWD 6-axis MWD 6-axis MWD 6-axis MWD 6-axis MWD MWD MWD MWD MWD MWD MWD MWD MWD MWD ---' 6-axis 6-axis 6-axis 6-axis 6-axis 6-axis 6-axis 6-axis 6-axis 6-axis .~ MWD 6-axis SP 6-axis SP 6-axis SP 6-axis SP 6-axis SP SP SP SP SP 6-axis 6-axis 6-axis 6-axis 6-axis ANADRILL SCHLUMBERGER Survey Report 7-Jun-2003 03:14:32 Page -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- Seq Measured # depth (ft) Incl angle (deg) Azimuth angle (deg) Course length (ft) TVD depth (ft) Vertical section (ft) Displ +N/S- (ft) Displ +E/W- (ft) Total displ (ft) At Azim (deg) 91 7920.00 -------- ------ ------- ------ -------- -------- ---------------- --------------- -------- ------ ------- ------ -------- -------- ---------------- --------------- 90.58 220.69 56.68 [(c)2003 Anadrill IDEAL ID6_1C_10] 6253.16 559.75 -378.87 -415.13 562.03 227.61 5 of 5 DLS (deg/ 100f) 0.00 Srvy tool type ------ ------ Tool qual type Projected to TD ------ ------ -.-/ '~ ) Unocal Alaska 909 W. 9th Avenue Anchorage, AK 99501 Tele: (907) 263-7651 Fax: (907) 263-7828 E-mail: harrisonb@unocal.com UNOCAL(Ø Beverly Harrison Business Ventures Assistant To: AOGCC Lisa Weepie 333 W. 7th Ave. Ste#100 Anchorage, AK 99501 DATA TRANSMITTAL - :~~~~(w~ì:L\~,~~ ~i~~i.~:: [ÖGrrvPÉ~~)i~)~~~,"1!Wf~~?~~:;itsCAt:E::'~ ;:,ù~~i'DAr~~~~ ~~~'INtERÝAC~q" ~la~L¡NEi~~ ;:FILM;" '~CD\; COMPLETION RECORD - 2.5" HSD POWER JET 2506 HMX RST SIGMA MODE RST SIGMA MODE RST SIGMA MODE COMPLETION RECORD - 2.5" HSD POWER JET 6 SPF 21/2" HSD PWER JET 2506, HMX 31/2" HALLIBURTON PLUG CEMENT MAP TEMPERATURE SURVEY - CEMENT TOP IDENTIFICATION PBMS COMPLETION REPORT - 2.5" HSD POWER JET, 6 SPF 1.56" 1606 HMX, TUBING PUNCHER COMPJETION RECORD 3.5 HALLIBURTON CAST IRON PLUG CEMENT DUMP BAILER (9OJ - 18Cr A-15RD '$1~crl9 AN-13RD2 J<9Z-COU/ AN-19 ) BriCe¡ - AN-37 [jc{).'-C85 G-12RD3 L) f\V)~(j-\ vGRINER-1 Ol...-t/- \\ GRINER-1 fjJ3-614 KGSF-3 I1JOJ -)3-3 M-5 i. 197-œ?<SRU223-2B SRU 223-28 6/17/2003 5 INCH 5/1/2003 11750-12550 51NCH 5/22/2003 3400-4650 5 INCH 5/22/2003 3400-4650 5 INCH 5/22/2003 3100-4250 51NCH 5/10/2003 12400-13610 5 INCH 4/19/2003 250-1780 4/8/2002 2 INCH 6/4/2003 3500-7020 5 INCH 4/16/2003 3600-3900 51NCH 5/25/2003 1580-5606 5 INCH 5/24/2003 1662-5665 ~- l\ 1 v~~\ - \ ~ l '- 0 l \ - \ C~ -- \ ~ \ g} l\ 2 2 2 2 2 1 I ~ \\8 1 . (<9- \\'{. 1 ¡â\Ct\ 1 j¿1 J.3 1<9\dO ~, )LI r & 1 'r- }ô J éìtÀ 2 J\~",1 181¿t.ß '3ð) 1')& I) (0 1 /\"ó-\\c¿5 1 o Please acknowledge receipt by signing and returning one copy of this transmittal or FAX to (907) 263-7828. , ,.,.. ,-~, ij'> f{~ ,. \I' '\ ,\ . !.'. '" "i-, ¡ ~,,~'. \I ,: .; 1,;~ . ~ "'-; 'I " ~ "~;4:; ~~'-i'" I ...A.I' Received BY~~~,~~ (~.~ð~ Date: ~~'ù\n~ I ¡ I:J ':',! ~ .:~ (\ t':-:<', \,J l), 1 ..... \.... L.' ',' .J 1\1 ;r~\lmr;T~ ",)f'~ "~: " ···::~·f '::. :;:.~.~~;:. ,~~·t,.f·~':'n1'~I~~~~/:~Di.ì 1 o ..... ) ') ~ " Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Telephone (907) 276-7600 UNOCAL8 ',;\il;~" Alaska June 12, 2003 Alaska Oil and Gas Conservation Commission 333 West ih Avenue Anchorage, Alaska 99501 Attn: Commission Randy Ruedrich Re: Transmittal of Sundry Notice (form 10-403) Change of Plans Kenai Gas Storage Facility Well #3 Swanson River Unit Commissioner Ruedrich: Attached for your approval is a completed Sundry Notice (form 10-403) for the Kenai Gas Storage Facility Well #3. As explained in the attached e-mail, Unocal requested and received AOGCC verbal approval to change the completion design in the subject well on 6/6/03. Please call (263-7640) or e-mail Obowen(ã>.unocal.com) if additional information is required or if I can be of assisitance in any way. Sincerely, ~F.~~ Advising Drilling Engineer Enclosure RECEIVE.D JUN 1 3 7003 A\aska Oil & Gas Cons. Commissioll Anchorage ) ) il'·Uq.1\- (p 111 Ì'l-O t~,)! IJV:-f 6 / )/I~ ,ør ú(ql~ STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION APPLICATION FOR SUNDRY APPROVAL 20 ACC 25.280 1. Type of request Abandon 0 Suspend 0 Alter Casing 0 Repair Well 0 Change Approved Program X~UII Tubing 0 2. Operator Name: Union Oil Company of California/Unocal 3. Address: Operation Shutdown 0 Plug Perforations 0 Perforate New Pool 0 Perforate 0 Stimulate 0 Variance 0 Time Extension 0 Annular Disposal 0 Other 0 PO Box 19-0247, Anchorage, AK 99519 7. KB Elevation (ft): 191 ft relative to MSL 8. Property Designation: A-028406 Re-enter Suspended Well 0 5. Permit to Drjll Number:.....-- Ð -I If- iI..tG,~ 203-p:7~ r Development 0 Exploratory 0 6. API Number: . ~ Statigraphic 0 Service X ·50-."131-2001 3.:50- ~~o51.3-00 -0'0 9. Well Name/Number: Kenai Gas Storage Facility (KGSF) #3 /' 4. Current Well Class 11 Total Depth MD (ft): 7920' 10. Field/Pool(s): Swanson River Field PRESENT WELL CONDITION SUMMARY Total Depth TVD (ft): Effective Depth MD (ft): Eff Depth TVD (ft): 6253' 7920' 6253' Plugs (measured): N/A Junk (measured): N/A Casing Structural Conductor Surface Intermediate Production 7263' 7" 7263' 6245' 8160 psi Liner 1703' 31/2" 7906'(cmt'd above7347') 6246' 10,160 psi Perf Depth MD (ft): Perf Depth TVD (ft): Tubing Size: Tubing Grade: HZ hole 7347' - 7920' HZ hole 6246' - 6253' 31/2" L-80 9.2 ppf IBTC SCC Packers and SSSV Type: Packers and SSSV MD (ft): Baker 31/2" x 7" SAB-3 permanent packer (no SSSV) 6203' (@ 50.5° inclination) 12. Attachments: Detailed Operations Summary X 13. Well Class after proposed work: Description Summary of Proposal X BOP Sketch 0 Exploratory 0 Development 0 14. Estimated date for commencing operations: 15. Well Status after proposed work: Length Size MD TVD 65' 13 3/8" 65' BGL 65' BGL 2060' 95/8" 2060' 1995' Burst Collapse NA NA 6620 psi 7930 psi 7020 psi 10,530 psi Tubing MD(ft): 6203' Service X 6/7/03 16. Verbal Approval: yes Comission Representative: Oil 0 WAG 0 Plugged 0 WINJO Contact: Title: Advisinq Drillinq Enqineer Date: 6/6/03 . / Winton Aubert Gas 0 Abandoned 0 WDSLP 0 GINJX 17. I hearby certify that the foregoing is true to the best of my knowledge. Printed Name Jerry F. Bowen Signature: ~ L Phone: 907-263-7640 Date: 6/10/03 FOR COMMISSION USE ONLY Conditions of approval: Notify Commission so representative may witness Sundry Numbe.r: 1:) E C E ~ V. r .3 t.J3· I ¿,~ ~ t= ~ lh..rc Plug integrity_ BOP Test_ Mechanical Integrity Test Location clearance - JUN 1 17 2003 Other: S b t f . d 10 t-f O·J ""~ {l- f,(,Ú £I ~/~-Þ(~· :p:r::::nbyorm 'C~ f2-/~ Commissioner ~~~~~~~NOF THE Date Alaska Oii & Gas COi1;:. CDi~'r;~i~~sìJ;; AZiJ7/0 j' Submit in triplicate &"P"erHG nRfr.;fNAè.. Form 10-403 Revised 2/2003 *-BFI. JJN M ?OO~1 ) ') Swanson River Unit Kenai Gas Storage Facility #3 Revised Schematic 6/1 0/03 U.NOCALe RKB = 191' AMSL .& · . SIZE 13 3/8" 9-5/8" CASING & TUBING DETAIL WT GRADE TOP 68 K-55 0' 53.5 L-80 (BTC) 0' 29 P-110 & L-80 (TKC) 0' BOTTOM 65' 2060' 7263 ' · . 7" · . 3 Y2" 9.2 L-80 (IBTC SCC) 0' 3 Y2" 9.2 L-80 (IBTC SCC) SS WW Screen 7363' 7363' 7906' · . · . · . -I I 1 ~;¿ ~~ +- 95/8" surface casing @ 2060' MD (cemented to surface) NO. 1. 2. Depth 2486 ' 6203 ' PROPOSED JEWELRY DETAIL Item SFO-l CI Methanol injection port (ID= 2.813") 7" x 3 12" SAB-3 penn packer, K-22 anchor seal assembly (@ +/-50° inclination) 3 1/2" 'XN' nipple (min. ID = 2.75") 3 12" Perf sub (to circulate cement) 3. 4. 6243' 7347' 7" casing TOC @ 5560' MD / 5211' VD (fTom temperature log) Top of 62-5 Sand @ 7167' MD / 6236' VD "' .. / 8 Vi' hole TO @ 7326' MO 16246' YO ...¡:~ ¡ :. . .-::)1 : . :-. -:-:.:-:-:.>:':\ 4 :¡¡'::::::::::u-::I:m;lii;i~:::::::JJ/ / / / / / / / / / / / III / / / / ; / / III!ÞJ. / Hydraulic set packer @ +1- 50° inclination for wireline access ~ ~ TD 6" hole @ 7920' MD 16253' VD 7" shoe @ 7270' MD 103' below top of reservoir @ 88.5° inclination KGSF#3 schematic 6-1 0-03.doc Drawn: 06/12/03 DRAWN BY: JFB ) ) UNOCAL~ KGSF#3 Final Surveys Schlumberuer Report Date: June 6, 2003 Survey I DLS Computation Method: Minimum Curvature / Lubinski Client: Unocal Vertical Section AzImuth: 222.450° Field: Swanson River Unit Vertical Section Origin: N 0.000 ft, E 0.000 ft Structure I Slot: Swanson River / KGSF#3 TVD Reference Datum: KB Well: KGSF#3 TVD Reference Elevation: 191.0 ft relative to MSL Borehole: KGSF#3 Sea Bed I Ground Level Elevation: 170.000 ft relative to MSL UWI/API#: 50-133-20523-00 Magnetic Declination: 20.580° Survey Name I Date: KGSF#3 MWD / May 15, 2003 Total Field Strength: 55478.947 nT Tort I AHD I DDII ERD ratio: 175.672° /3546.36 ft / 5.897/ 0.567 Magnetic Dip: 73.594° Grid Coordinate System: NAD27 Alaska State Planes, Zone 04, US Feet Declination Date: May 15, 2003 Location Lat/Long: N 604528.638, W 1505039.716 Magnetic Declination Model: BGGM 2002 Location Grid NlE YIX: N 2469940.818 ftUS, E 348983.088 ftUS North Reference: True North Grid Convergence Angle: -0.73677566° Total Corr Mag North -> True North: +20.580° Grid Scale Factor: 0.99992595 Local Coordinates Referenced To: Well Head Comments Measured Inclination Azimuth TVD Vertical NS EW Closure Closure DLS Tool Face Depth Section Azimuth (ft) (deg) (deg) ( ft ) (ft) ( ft) ( ft ) ( ft ) ( deg ) ( deg/100 ft ) (deg) Tie-In 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 69.53M DMAG corrected 144.80 0.28 69.53 144.80 -0.32 0.12 0.33 0.35 69.53 0.19 154.21M DMAG corrected 239.70 0.15 154.21 239.70 -0.48 0.09 0.60 0.61 81.23 0.32 126.50M DMAG corrected 322.72 0.38 126.50 322.72 -0.46 -0.17 0.87 0.89 100.95 0.31 86.20M DMAG corrected 411.38 1.18 86.20 411.37 -1.15 -0.28 2.02 2.04 97.98 1.04 78.76M DMAG corrected 502.07 2.09 . 78.76 502.02 -3.16 0.10 4.57 4.57 88.73 1.03 77.12M DMAG corrected 689.32 4.71 77.12 688.93 -12.24 2.48 15.42 15.62 80.86 1.40 73.89M DMAG corrected 784.77 5.88 73.89 783.97 -19.63 4.71 23.94 24.39 78.86 1.26 -2.55G . DMAG corrected 879.50 7.27 73.40 878.07 -28.91 7.77 34.34 35.21 77.25 1.47 -18.27G DMAG corrected 975.47 9.13 69.57 973.06 -40.90 12.16 47.30 48.84 75.58 2.02 -20.49G DMAG corrected 1070.78 11.19 65.65 1066.87 -56.13 18.62 62.81 65.51 73.49 2.28 -22.59G DMAG corrected 1165.91 13.50 61.59 1159.79 -75.11 27.71 80.99 85.60 71.11 2.59 -30.91G DMAG corrected 1263.70 15.68 56.87 1254 .43 -98.69 40.36 102.10 109.79 68.43 2.54 -34.30G DMAG corrected 1357.48 17.18 53.4 7 1344.38 -124.56 55.53 123.84 135.72 65.85 1.90 -15.29G DMAG corrected 1456.46 19.61 51.50 1438.30 -155.32 74.58 148.59 166.26 63.35 2.53 -23.49G DMAG corrected 1549.69 21.81 48.95 1525.50 -187.98 95.69 173.90 198.49 61.18 2.55 -37.09G DMAG corrected 1645.06 22.67 47.28 1613.77 -223.90 119.80 200.76 233.79 59.18 1.12 -48.47G DMAG corrected 1740.70 22.92 46.56 1701.94 -260.84 145.11 227.83 270.11 57.51 0.39 -7.84G DMAG corrected 1836.58 24.20 46.13 1789.83 -299.07 171.56 255.55 307.80 56.12 1.35 -172.06G DMAG corrected 1934.01 23.13 45.75 1879.06 -338.11 198.76 283.66 346.36 54.98 1.11 149.02G DMAG corrected 2007.4 7 22.77 46.31 1946.71 -366.70 218.64 304.27 374.68 54.30 0.57 -149.04G Interpolated Azimuth 2063.02 22.49 45.87 1997.98 -388.03 233.4 7 319.67 395.85 53.86 0.59 -21.59G DMAG corrected 2159.41 23.25 45.11 2086.80 -425.43 259.73 346.38 432.94 53.14 0.85 -5.69G DMAG corrected 2254.83 23.49 45.05 2174.39 -463.24 286.46 373.18 470.45 52.49 0.25 46.16G DMAG corrected 2350.64 23.83 45.92 2262.14 -501.64 313.41 400.60 508.63 51.96 0.51 -33.24G DMAG corrected 2445.69 24.29 45.19 2348.94 -540.33 340.55 428.26 547.16 51.51 0.58 30.66G DMAG corrected 2542.66 24.70 45.77 2437.18 -580.48 368.74 456.93 587.15 51.10 0.49 15.67G DMAG corrected 2637.90 25.82 46.49 2523.31 -621.04 396.90 486.23 627.65 50.78 1.22 -112.55G DMAG corrected 2733.54 25.68 45.70 2609.45 -662.50 425.71 516.17 669.07 50.49 0.39 171.91G DMAG corrected 2829.12 25.23 45.85 2695.75 -703.51 454.36 545.61 710.02 50.21 0.48 -178.46G DMAG corrected 2924.16 24.61 45.81 2781.95 -743.49 482.27 574.33 749.96 49.98 0.65 -177.87G DMAG corrected 3020.12 23.23 45.68 2869.66 -782.33 509.42 602.20 788.76 49.77 1.44 -84.00G DMAG corrected 3115.85 23.30 44.17 2957.61 -820.11 536.19 628.90 826.44 49.55 0.63 -63.96G DMAG corrected 3210.76 23.50 43.16 3044.71 -857.79 563.45 654.92 863.94 49.29 0.47 -171.03G DMAG corrected 3307.06 23.25 43.06 3133.11 -895.99 591.35 681.03 901.94 49.03 0.26 83.86G DMAG corrected 3401.98 23.33 44.73 3220.30 -933.51 618.39 707.05 939.32 48.83 0.70 93.81G DMAG corrected 3497.53 23.29 46.73 3308.05 -971.25 644.78 734.12 977.07 48.71 0.83 51.75G DMAG corrected 3593.30 23.47 47.30 3395.95 -1 009.13 670.69 761.92 1015.06 48.64 0.30 -50.73G DMAG corrected 3689.89 23.92 45.96 3484 .40 -1047.84 697.34 790.13 1053.85 48.57 0.73 178.37G Version DO 3.1 RT ( do31 rt_399 ) 3.1 RT Service PacK~St3#3\KGSF#3\KGSF#3\KGSF#3 MWD Generated 6/9/2003 6:39 AM Page 1 of 3 ) )MAG corrected 3785.82 23.50 45.99 3572.23 -1086.35 724.15 817.87 1092.39 48.48 0.44 -171.69G )MAG corrected 3880.41 22.43 45.58 3659.33 -1123.19 749.89 844.32 1129.25 48.39 1.14 -150.96G )MAG corrected 3977 .20 21.53 44.21 3749.08 -1159.38 775.54 869.90 1165.41 48.28 1.07 -147.36G )MAG corrected 4071.43 20.62 42.54 3837.01 -1193.25 800.16 893.17 1199.17 48.14 1.16 -94.09G )MAG corrected 4168.08 20.57 39.47 3927.48 -1227.23 825.81 915.47 1232.90 47.95 1.12 -79.74G DMAG corrected 4263.24 20.98 34.33 4016.46 -1260.79 852.78 935.71 1266.01 47.65 1.96 -70.33G DMAG corrected 4359.90 21.58 30.16 4106.54 -1295.29 882.45 954.40 1299.84 47.24 1.68 -81 .1 OG DMAG corrected 4453.53 21.88 25.94 4193.52 -1328.85 913.02 970.68 1332.60 46.75 1.70 -142.42G DMAG corrected 4549.46 19.47 20.16 4283.27 -1360.79 944.11 984.01 1363.68 46.19 3.29 -148.18G DMAG corrected 4646.05 17.54 16.10 4374.87 -1388.73 973.21 993.60 1390.82 45.59 2.40 -143.82G DMAG corrected 4741.68 15.75 11.12 4466.49 -1412.73 999.80 1000.10 1414.14 45.01 2.39 -143.82G DMAG corrected 4838.86 12.91 1.17 4560.66 -1432.16 1023.60 1002.87 1433.00 44.41 3.86 -143.30G DMAG corrected 4932.30 9.56 344.04 4652.32 -1444.08 1041.51 1000.94 1444.51 43.86 5.02 -128.89G DMAG corrected 5027.22 7.69 319.86 4746.19 -1449.03 1053.94 994.68 1449.20 43.34 4.25 -47.55G DMAG corrected 5123.54 11.72 301.14 4841.13 -1447.94 1063.94 982.14 1447.95 42.71 5.26 -67.75G DMAG corrected 5220.25 14.43 281.88 4935.37 -1439.88 1071.50 961.93 1439.94 41.92 5.27 -85.36G DMAG corrected 5315.12 15.66 262.83 5027.05 -1424.10 1072.34 937.64 1424.46 41.17 5.35 -89.52G DMAG corrected 5411.02 16.45 245.02 5119.26 -1401.69 1064.98 912.48 1402.43 40.59 5.18 -93.05G DMAG corrected 5506.80 16.85 228.59 5211.08 -1375.35 1050.07 889.76 1376.34 40.28 4.92 -16.18G DMAG corrected 5602.84 18.74 226.89 5302.52 -1346.13 1030.31 868.06 1347.25 40.11 2.04 -4.78G DMAG corrected 5697.51 20.92 226.38 5391.57 -1314.10 1008.26 844.72 1315.34 39.96 2.31 9.91G DMAG corrected 5792.73 25.95 228.38 5478.91 -1276.39 982.68 816.82 1277.83 - 39.73 5.35 2.32G DMAG corrected 5888.87 32.61 228.88 5562.72 -1229.67 951.63 781.54 1231.42 39.39 6.93 -24.85G DMAG corrected 5984.07 35.45 226.63 5641.61 -1176.64 915.80 742.13 1178.75 39.02 3.26 -21.80G DMAG corrected 6079.49 38.69 224.57 5717.74 -1119.22 875.54 701.08 1121.64 38.69 3.64 -23.52G DMAG corrected . 6176.35 41.72 222.60 5791.71 -1056.72 830.23 658.00 1059.36 38.40 3.39 ·16.51G DMAG corrected 6223.99 43.20 223.24 5826.85 -1024.56 806.68 636.10 1027.31 38.26 3.24 7.44G 6272.01 46.13 223.77 5861.00 -990.81 782.21 612.86 993.70 38.08 6.15 1.59G 6305.16 47.73 223.83 5883.64 -966.60 764.73 596.10 969.61 37.94 4.83 -1.60G 6367.06 50.50 223.73 5924.15 -919.82 730.94 563.73 923.07 37.64 4.48 -2.82G 6463.19 55.70 223.42 5981.85 -842.99 675.26 510.76 846.67 37.10 5.42 -5.74G 6560.03 59.92 222.93 6033.43 -761.06 615.50 454.70 765.25 36.46 4.38 -6.68G 6654.50 65.04 222.27 6077.07 -677.31 553.85 398.02 682.03 35.70 5.45 -18.70G 6750.57 67.25 221.46 6115.92 -589.46 488.42 339.39 594.76 34.79 2.43 -6.77G 6846.59 69.06 221.23 6151.64 -500.35 421.51 280.52 506.32 33.64 1.90 -11.61G 6936.80 71.65 220.67 6181.97 -415.43 357.34 224.85 422.20 32.18 2.93 16.33G 6976.99 72.66 220.98 6194.29 -377.19 328.39 199.84 384.42 31.32 2.62 27.21G 7022.91 74.48 221.95 6207.27 -333.15 295.39 170.67 341.15 30.02 4.45 -11.95G 7096.66 76.78 221 .45 6225.58 -261.72 242.05 123.15 271.58 26.97 3.19 -8.02G 7189.52 84.36 220.38 6240.78 -170.22 172.87 63.21 184.07 20.08 8.24 9.20G 7246.63 87.94 220.96 6244.61 -113.27 129.66 26.08 132.26 . 11.37 6.35 23.13G 7283.31 88.97 221.40 6245.60 -76.62 102.07 1.94 102.08 1.09 3.05 18.43G 7322.91 89.66 221.63 6246.08 -37.03 72.42 -24.31 76.39 341 .44 1.84 126.39G 7367.70 89.52 221.82 6246.40 7.76 38.99 -54.12 66.70 305.77 0.53 -113.41G 7411.49 88.94 220.48 6246.98 51.53 6.02 -82.93 83.15 274.15 3.33 46.82G 7463.26 89.55 221.13 6247.67 103.28 -33.16 -116.76 121.38 254.14 1.72 -161.70G 7557.72 88.25 220.70 6249.48 197.68 -104.53 -178.61 206.95 239.66 1.45 45.00G 7653.57 88.77 221.22 6251.97 293.47 -176.89 -241 .42 299.29 233.77 0.77 -68.31G 7749.79 89.14 220.29 6253.73 389.63 -249.76 -304.23 393.62 230.61 1.04 23.61G 7846.94 90.65 220.95 6253.91 486.73 -323.50 -367.47 489.58 228.64 1.70 -105.07G 7863.32 90.58 220.69 6253.73 503.10 -335.90 -378.18 505.81 228.39 1.64 O.OOG Projection to TO 7920.00 90.58 220.69 6253.16 559.75 -378.87 -415.13 562.03 227.61 0.00 O.OOG Survey Type: Raw Survey Survey Error Model: SLB ISCWSA 3·D 95.00% Confidence 2.7955 sigma SurveyinQ ProQ: Version DO 3.1RT (do31rt_399) 3.1RT Service PacKca$E#3\KGSF#3\KGSF#3\KGSF#3 MWD Generated 6/9/2003 6:39 AM Page 2 of 3 ) ) Page lof2 Bowen, Jerry -Alaska From: Winton Aubert [Winton_Aubert@admin.state.ak.us] Sent: Friday, June 06,20034:12 PM To: Bowen, Jerry -Alaska Cc: Sarah H Palin; Randolph A Ruedrich; Daniel Seamount Subject: Re: Request for approval to change the completion design - KGSF #3 Jerry , This confirms AOGCC's verbal approval of proposed changes to your KGSF #3 drilling program as detailed below. All other permit stipulations apply. Please submit appropriate documentation (Form 10-403 with supporting information) as required. / Winton Aubert AOGCC 793-1231 "Bowen, Jerry -Alaska" wrote: /' Gentlemen; Unocal respectfully requests approval to run a modified completion in the KGSF Well #3, as per the attached diagram. Although we successfully pressure tested our 7" casing above 7110', we conducted a second test after drilling out the shoe track to 7234' and experienced a minor leak which could be attributed to either a minor leak in the shoe track or pumping through the 7" shoe. Please note that in the unlikely event there is a leak in the shoe track, this is within the objective 62-5 reservoir. The following chronology lists all of the pertinent facts leading us to the conclusion that this action is necessary to ensure injection conformance to the pay sands with 100% certainty. 1. The 8 1/2" hole was drilled to TO at 7326' MD /6246' VD at 90° inclination. The top of the reservoir was encountered at +/-7167' MD. 2. The 7" casing was cemented at 7263' as per the program with 101 bbls of slurry. 3. A temperature log showed a clear top of cement at 5560'. 4. A 3000 psi MIT of the 7" casing leaked off 65 psi in 30 minutes (good test). 5. Hard cement was drilled from 7110' to 7234' MD, leaving 29' of cement inside the 7" above the shoe. 6. A second 3000 psi M IT was performed the pressure bled off to 2400 psi in 6 minutes. Data indicates possible leaking float collar or pumping through 7" shoe, leak too small to squeeze successfully. 7. Decision was made to continue drilling to 6" hole TO and run partially cemented 6/12/2003 ) Page 2of2 ) 3'1/2" completion (with a packer) which would eliminate any/all risks associated a potential leak in the shoe track. It should be noted that a leak in the shoe track would be inside the objective 62-5 Tyonek Sand. Unfortunately, we are approximately at TO at this time, and we will be in a position to start running this completion within the next 12-14 hours. I will attempt to contact you by telephone in the next half hour or so. Sorry for /'- having a problem on Friday afternoon. Thanks. Jerry F. Bowen, P.E. Advising Drilling Engineer Office: 907-263-7640 Cell: 907-360-2490 Home: 907-688-2278 Fax: 907-263-7884 «KGSF#3 Revd schematic 6-6-03.doc» 6/12/2003 ) ) Kenai Gas Storage Facility (KGSF) #3 Daily Report of Operations 5/5/03 - 5/9/03: Unocal Drilling staff & senior Nabors crew in Well Control School, no field work during this period. 5/10/03: Installed cellar. Drilled mouse hole. Started driving 13 3/8" conductor pipe. 5/11/03: Finished driving 13 3/8" conductor to refusal at 65' BGL. Installed conductor base plate & 4" outlets for cement returns. Graded & compacted location for rig footprint. Hauled remaining rig mats to location. Laid two layers of felt & 24 mm liner. Positioning rig mats & preparing to MI Nabors rig #129. 5/12/03 Started MI & RU Nabors Rig #129 (turnkey rig move). 5/13/03: Oriented new crews & started 24 hr operations. Continued MI & RU Nabors Rig #129. 5/14/03: Installed starting head. NU diverter. Accepted rig at 12:00 hrs on 5/14/03. Started RU TDS. Started mixing WB spud mud. 5/15/03: Continued RU TDS & mixing spud mud. Held pre-spud meeting. RU Anadrill & Epoch sensors. Function tested diverter. Make up 12 Y4" rotary BHA. 5/16/03: Spudded well at 2:00 hrs on 5/16/03. Cleaned out 13 3/8" conductor & drilled to 238'. POH & L/D BRA #1. P/U 29 stands 4" DP. M/U 12 Y4" steerable BRA #2. 5/17/03: Drilled 12 Y4" hole from 238' to 1896'. SD to repair pumps three times (2 hrs total). 5/18/03: Continued drilling 12 Y4" hole to 2070' MD / 2000' YD. Circ clean & pumped out of the hole. Lay down BRA #2. RIR w/ 48 jts. 9 5/8" 53.5 ppfL-80 BTC csg to 2060'. Cemented csg w/ 12.8 ppg lead & 500' of 15.8 ppg tail slurry. Bumped plug & pressure up to 2000 psi. Bled off pressure, floats held. Had good cmt returns at surface. Clean excess cement out of cellar. 5/19/03: RD casing tools. ND diverter. NU & tested wellhead. NU BOP & choke/kill lines. 5/20/03: Finished NU chokelkilllines & manifoild. Started testing BOP w/ AOGCC witness. Had leaks at super choke stem & TDS IBOP, started repairing same. 5/21/03: Finished IBOP & choke repairs. Started PU 4" DP. Inspector arrived, POR & completed BOP test to 250/3000 psi. Continued RIR while PU 4" DP. Displaced WBM w/OBM. POH. Tested 9 5/8" casing to 2000 psi for 30 minutes, bled off to 1907 psi, okay. 5/22/03: MU 8 12" rotary steerable BRA w/ MWD/GR, function test same immediately below surface. RIH PU remainder of required 4" DP. Drilled 9 5/8" shoe track & 20' of new hole to 2090' MD. Conducted LOT (14.3 ppg EMW). Drilled from 2090' to 3263'. 5/23/03: Drilled from 3263' to 4601'. 5/24/03: Drilled from 4601' to 5684' . 5/25/03: Drilled from 5684' to 6273'. Rotary steerable BRA not responding. Circ clean & POR. Found problem, one of three steering pads on rotary steerable tool had blown seal. ) 5/26/03: Make up back-up rotary steerable tool & RIR. Drilled.l._ "i~ 6273' to 6993'. '5/27/03: Drilled from 6993' to 7075'. Unable to build angle & land horizontally on target with rotary steerable BRA. POR to PfU standard steerable BRA. Rad to back ream from 6060' to 5940' while POR, MfU standard steerable BRA & start RIR to 2063' . 5/28/03: Finished Rlli wi steerable BRA. Drilled from 7075' to landing point at 7326' MD I 6246' YD. (Top of62-5 sand encountered at 7167' MD I 6236' VD.) C&C hole. Started back reaming out of the hole. [Note: Obtained waiver from AOGCC to postpone weekly BOP test until after 7" casing cemented on +1- 5/30103.] 5/29/03: Finished back reaming & POR. Changed bottom rams to 7" & tested same. RU to run 7" csg. RIR wi 7" 29 ppf L-80 BTC KC casing to +1-4000' 5/30103: Continue runninglwashing 7" casing to 6215', no further progress. POR 5/31103: Cleared rig floor. Changed rams & performed weekly BOP test to 250/3000 psi. RIR wi 8 Y2" (fixed 8 112'" OD) bullnose hole opener. Washed & reamed to 6243', no further progress. POH. 611103: Finished POR. RIR wi 6" bit on steerable BRA wi MWD. Washed & reamed to TD at 7326' MD. POR & beack-reamed to 6345' with difficulty. 6/2/03: Continued back-reaming to 6270', hole packing off. RIR to 7326' TD. Circ & conditioned hole. Raised MW to 9.95 ppg. Pumped out of hole (with minor back- reaming at one point) to 6322'. POR from 6322' to surface without pumping. RU to run 7" casing. 6/3/03: RIR wi 7" 29 ppfL-80 & P-IIO TKC casing to 6236'. Washed & reamed to 6966' . 6/4/03: Continued washing & reaming casing from 6966)0 7263' with diffiCUltY'~71.iê"~ & condition hole. Cemented 7" casing wi 18 bbls chern. wash, 25 bbls Mud Push 2Y bbls 13 ppg lead cement & 17.7 bbls 15.8 ppg tail cement. Displaced cement wi 2 "bbls OBM, plug did not bump, stopp~d displacing to avoid wet shoe. Had steady partial returns throughout job, lost total 23 bbls OBM. RD cementing equipment. Installed casing pack-off. RU E-line. Ran temp/CCL log. Confirmed TOC at 5560' (lead) & 6100' (tail slurry). RD E-line unit. Changed rams & teted BOP. 6/5/03: Installed wear ring. Performed casing MIT to 3000 psi, bled off 65 psi in 30 minutes. RIR wi 6" steerable BRA wi MWD/GR. Tagged cement at 7100'. Drilled out firm cement from 7100' to 7234'. Re-tested 7" casing to 3000 psi, bled off 600 psi in 6 minutes. SD to discuss options. Re-tested casing & checked for surface leak, same result & no surface leaks found. 6/6/03: Drilled firm cement from 7234' to shoe at 7263'. Changed over to 8.3 ppg / CaC03 OBM. Drilled 6" horizontal hole to TD @ 7920' MD I 6253' YD. Circ hole clean. Started POR LID 4" drill pipe. 6/7/03: Continued LID 4" DP. LID BRA. RU to run 3 Y2" completion. SD to repair tongs. 6/8/03: Ran 3 Y2" guide shoe, 543' of 3 Y2" SS WW screen, aluminum plug, perf sub, float collar, 1 joint 3 Y2" tubing, landing collar, 3 Y2" 9.2 ppf L-80 IBTC tbg up 6203', SAB-3 packer, 3 Y2" tbg to surface. Positioned methanol injection port at 2486'. Landed completion wi SVJo 906'. Circ well clean. Cemented 3 Y2" tubing with 20 bbls 10 " ppg Mud Push 23 bls 15.8 ppg cement. Displace cement with 66 bbls 8.2 ppg / / ) .) /' CaC030BM. Bumped plug & pressured up to 3500 psi to test \"..;) & set packer. Float held pressure. Tested 3 ~" x 7" annulus to 1500 psi for 30 minutes, no leak. 6/9/03: Cleaned rig floor. LID Top-Drive unit. Installed BPV. ND BOP. NU 3 1/16" 5m X-mas tree. Changed BPV to TWC valve. Tested tree & hanger seals to 5000 psi. . 6/10103: RID test equipment. Finished cleaning pits. Prepared to LID derrick. Released rig @ 5:00 hrs on 6/10103 for turnkey move to Happy Valley location. (Final report until CTU mobilized) Re: Request for Waiver for 7" shoe LOT Subject: Re: Request for Wa.... ,.1 for 7" shoe LOT ') Date: Thu, 29 May 200307:52:25 -0800 From: Winton Aubert <Winton_Aubert@admin.state.akus> Organization: AOGCC To: "Bowen, Jerry -Alaska" <jbowen@unocal.com> CC: Sarah H Palin <sarah..])alin@admin.state.akus>, Randolph A Ruedrich <randy _ruedrich@admin.state.akus>; Daniel Seamount <dan_seamount@admin.state.akus> Jerry, When you turned horizontal and reached TD in the 8-1/2" section, you in effect obtained a "drill-in" FIT. The formation pressure and necessary mud weight are not prognosed to change through the horizontal section. AOGCC recognizes this drill-in FIT as satisfying the requirements of20 AAC 25.030 (t). Winton Aubert AOGCC 793-1231 "Bowen, Jerry -Alaska" wrote: Winton; AOGCC regulation 20 MC 25.030 (f) requires a formation integrity test (Le. FIT or LOT) be performed anytime a BOP is installed on surface or intermediate casing before drilling ahead. However, regulation 20 MC 25.030 (g) allows the granting of a waiver to this requirement "to allow for special or unusual conditions if the design requirements of (a) of this section are satisfied." Is it possible that we can obtain a waiver for the 7" shoe test in KGSF #3, since the shoe is positioned at the beginning of the horizontal drainhole, and there is no issue related to the ability of the shoe to handle kicks, etc.. Furthermore, there is some concern that if we break down the shoe in the consolidated pressure-depleted (0.12 psi/ft) objective reservoir (Tyonek 62-5), the fracture might not heal and loss of returns while drilling the 6" hole potentially could become a serious problem. It's true that loss or returns can become a problem whether we perform a formation integrity test or not, but the risk might be higher if we intentionally pressure up against the formation to break it down (LOT) or to some pre-determined EMW (FIT). I realize that we're asking for a lot these days, but hopefully for the right reasons. Please call if you would like to discuss. Thanks. Jerry F. Bowen, P.E. Advising Drilling Engineer Office: 907-263-7640 Cell: 907-360-2490 Home: 907-688-2278 Fax: 907-263-7884 KGSF #3 - proposed change to 7" intermediate casing cementing program ~ I. \, Z',O~... 07T Subject: KGSF #3 - proposed chaho .,lo 7" intermediate casing cementing pr, ....)am Date: Fri, 23 May 2003 13 :20: 19 -0800 From: "Bowen, Jerry -Alaska" <jbowen@unoca1.com> To: <greg_ noble@blm.gov>, <winton _aubert@admin.state.ak.us> Gentlemen; Please be advised that Unocal intends to modify the planned cementing program for the 7" intermediate casing in the subject well, as shown on the attached diagram. I assume that AOGCC & BLM approval is required for this change in the plan, but I do not know if a Sundry Notice is required. Please let me know and I will prepare and submit the Sundry if required. The original plan, as permitted, calls for cementing the 7" intermediate casing from the horizontal landing point in the 62-5 Tyonek Sand (6247' VO) up to the 9 5/8" surface casing shoe (2000' VO). We are concerned that we probably would lose returns during displacement due to excessive cement column hydrostatic head acting on the pressure depleted objective 62-5 Tyonek reservoir. We potentially could lose returns in the low pressure reservoir and 'frac away' all of the higher quality 15.8 ppg tail slurry, thus leaving only the 12.8 ppg lead slurry to provide zonal isolation across the top of the objective reservoir. The 12.8 ppg lead slurry is capable of providing the isolation we need, but we would prefer to revise the design to minimize the risk of lost returns and maximize the probability of placing the tail slurry in the critical area as per design. By reducing the height of the designed top of cement, and by reducing the displacement rate toward the end of the job, the revised plan limits the ECO during displacement to approximately 12 ppg EMW, which is approximately the same ECO we experienced when we drilled the 4 5/8" slimhole horizontal drainhole in KGSF #2 in 2002. We did not lose returns then, so we feel that this provides a technical point of reference for design purposes. Since there are no known hydrocarbon bearing sands above the 62-5 Sand, there does not appear to be a compelling technical reason or regulation which would require us to cement the 8 1/2" hole up to the 9 5/8" shoe. Please call or e-mail if additional information is required or if I can be of assistance in any way. I will try to contact you by telephone sometime this afternoon. ftpf'ri\load ~ E- ~~ ( 5 12.. ~l '2.-00$ . \IJ GA- Thanks. Jerry F. Bowen, P.E. Advising Drilling Engineer Office: 907-263-7640 Cell: 907-360-2490 Home: 907-688-2278 Fax: 907-263-7884 «KGSF#3 Prop Schematic 3-28-03.doc» «cement volume cals1.xls» Name: KGSF#3 Prop Schematic 3-28-03.doc I=--'" KGSF#3 P S h t' 3-28-03 d :.J Type: WINWORD File (application/msword). :.:.:-: . fOp ... C ema IC . oc E d· b 64 .. . nco Ing: ase ¡ Description: KGSF#3 Prop Schematic 3-28-03.doc , . - '" .... , .. Name: cement volume cals I.xls : I::. t I 1 1 I' . Type: Microsoft Excel Worksheet (application/vnd.ms-excel) . ~:.: cen1en vo ume ca s .x s! E d· b 64 i .- nco Ing: ase JD~sc~~ptio~: cement ~o,lume cals1.xls ) ) Cement Volume Calculation (Revised 5/23/03) Kenai Gas Storage Facility Well #1 Swanson River Unit, Kenai Peninsula, Alaska Assumptions: 1. The 9 5/8" surface casing must be cemented to surface, to provide maximum; (a.) structural stability, (b.) long term well control security, and (c.) protection of fresh water sands. Since water- based spud mud be utilized to drill this section, the calculated cement volume will include 40% excess cement in order to ensure a moderate amount of cement returns to surface. 2. The 7" intermediate/production casing is viewed as the primary containment vessel in the event of a 3 1/2" tubing leak. Provided returns are not lost during the primary cement job, it is desired to circulate cement up to the 9 5/8" surface casing shoe. This will tend to provide long term reliability, over many injection/production cycles, due to minimizing the effects of external corrosion, minimizing periodic casing shifting or movement, and by providing additional burst resistance in the cemented interval. Since OBM will be used to drill this interval, the calculation assumes only 20% excess cement is required. However, due to the unknown frac gradient in the depleted 62-5 objective reservoir, where the 1" shoe will be landed, it is possible that returns will be lost before the plug is bumped. 95/8" Surface Casing: Open hole volume = ((12.25)^2-(9.625)^2)*3.1417/4/144/5.61*2000*1.4 = 156 bbls Total slurry volume = 156 bbls Cement Type: Class 'H' w/ 3% gel extender mixed at 13.0 ppg (w.o. Dowell design) Yield = 2.08 fe/sk number of sacks = 156 x5.61/ 2.08 = 422 sx 7" Intermediate/Production Casing: Note: Assume 500' of class 'G' tail slurry mixed @ 15.8 ppg & 3315' of gel extended class 'G' lead slurry mixed at 13.0 ppg to bring TOC to 3571' MD / 3389' VD. Openhole volume = ((8.5)^2-(7)^2)*3.1417/4/144/5.61 *(7392-3577)*1.2 = Total slurry volume = 103 bbls 103 bbls Lead Cement Type: Class 'H' + gel extender mixed at 13.0 ppg Yield = 1.88 fe /sk number of sacks = 90 x 5.61/ 1.88 = 268 sx Tail Cement Type: Class 'H' mixed at 15.8 ppg (w.o. Dowell design) Yield = 1.2 fe /sk number of sacks = 14 x 5.61/ 1.2 = 63 sx ') ) Cementing Contingencies: 1. Emergency slips for 3 1/2" tubing and 7" intermediate casing will be on location in case either string sticks with the hanger not landed, i.e. while reciprocating or while running in the hole. 2. If returns are lost during the 9 5/8" surface casing cement job, or if cement is not circulated to surface, it will be necessary to wait until the cement has setup and then bullhead additional cement down the 9 5/8" x 13 3/8" annulus. This would be necessary to obtain a competent pressure seal below the 13 3/8" starter head and to ensure mechanical stability at surface (i.e. for future HWOU operations, etc.). 3. No contingency is required in the event returns are lost during the T' intermediate/ production casing cement job, provided an adequate volume of cement is circulated to eliminate the risk of behind-pipe communication between the objective formation and overlying formations. ) ÖYf~nson River Unit Kenai Gas Storage Facility #3 Proposed Schematic 3/28/03 UNOCALe RKB = 191' AMSL j l~ SIZE 13 3/8" 9-5/8" 7" 7" WT 68 53.5 29 29 CASING & TUBING DETAIL GRADE TOP K-55 0' L-80 (BTC) 0' L-80 (BTC) 0' L-80 (BTC KC & TKC) 1000' BOTTOM 40 - 80' 2000' 1000 ' 7392' 3 ~" 9.2 L-80 (IBTC SCC) 0' 7092' 3 ~" 9.2 L-80 (IBTC SCC) SS WW Screen 7092' 7620' ~ I 1 ~ s.: 95/8" surface casing cemented to w/ 1500' oflead slurry @ 12.8 ppg 'H' + gel extended & 500' of tail slurry @ 15.8 ppg 'H' (measure actual hole volume w/ carbide + pump 20% excess) PROPOSED JEWELRY DETAIL NO. Depth Item 1. +/-2500' SFO-1 CI Methanol injection port (ID= 2.813") 2. +/-6400' 7" x 3 ~" SAB-3 perm packer, K-22 anchor seal assembly (@ +/-55° inclination) 3. +/-6430' 3 1/2" 'XN' nipple (min. ID = 2.75") 4. +/-6370' 3 ~"CMU SSD (min. ID = 2.813") 7" casing cemented to +/-3577' .MD / 3389' VD 13 ppg 'H' + gel extender lead slurry & 500' (linear) of 15.8 ppg class 'H' tail slurry (20(~'Ó excess win be pumped) . . . . ......... .' Bit sizes = 12 ~", 8 ~" & 6 1/8" .. .. .. .. .. .. . . . . . : . : . : . ;¿. : . . . . - . . ~(;b?(~:j1~ . -.: ::<>::::::::~~.I! 1IIIIIIIIIIIIIIIIIIIIIIIIIÎiiIfJ Hydraulic set packer @ +1- 55° inclillation z::~: :~~~~s:' \ ~ TD = 7674' MD / 6258' VD 7" shoe between top of reservoir and landing point @ 85° - 90° inclination KGSF#3 Prop Schematic 3-28-03.doc Drawn: OS/23/03 DRAWN BY: JFB ------- ~GUARDPIPE$C: /' ~ SECTION 27 J-. J-. J-. TOWNSHIP 8 NORTH 2'"L~CAP . RANGE 9 WEST SEWARD MERIDIAN ALASKA ') ,-"",\, , . ......... <': OF At. ., ~ :\v,",.A ,r-. II -~~", ."'\J.L ~ - 0.....,T rl ;' *,'49IJ:L ,-y*~ ~""'''''''' ", , , ,"-1>':"" "", "~ ~ %'STAN A. McLANE 'I' ~ : Ii 'Ä, 4637-S, - 1""'<') " "" 0/ - I ()",,,,,,,, >r-"Ì"<:) - , . ~Or"ss IoN"\. \. ,..,.,- ."""",..... ------- ------- PROPOSED KGSF#3 GRID N: 2469944.760 GRID E: 348982.390 LA T: 60·45'28.676" N LONG: 150·50'39.731 "w ELEV. 173.33' SCALE 1 inch = 100 ft. ~O KGSFi3 SURFACE LOCATION DIAGRAM P.O. 80x 468 SOLDOTNA, AK 99669 ~ Consulting c;'roup ~ Testing TEL 907.283.4218 FAX 907.283.3265 ./" I~ lL. ------- ------- . 4S'CASING ~ " ~ . .;.--> ~ ~ ~ SWANSON RIVER FIELD PAD 212-27 . ~ BREAKER . BO~ ""'.- '~":~M~~,," _ ~, . 0 Y_oC_-\~ GUARD PIPES t- 36' CASI NG 4030'FEL ..... JUNK GL VCOL TANK ON~ METHONAL TANK ON SKIDS o ~ 212·27 )b GUARD PIPES ~ ~ ---J. 10'DIA, . WELL CASING ARCTIC THERM 'c~\~" ~ -l UNIT ON SKIDS ¡~" 1:/ ~ ~'i:. ~ ~~'i:.'i:.\.\ -l .¡!.¡,-l ryyy'(" 2' AL, CAP . ..¡'f~ NOTES 1) BASIS OF COORDINATES: NGS CORS STATION "KEN 1" NAD27 ASP ZONE 4. 2) BASIS OF ELEVATION: NAVD88. GRID APPLICANT: UNDCAL 909 W. 9th Avenue . Anchorage, AK 99519-7685 OFFSETS 1754' FNL SECTION 27 4030' FEL T8N R9W SM AK Dwg:033023 I Date: OS/20/03 RGURE: 1 ) ) Bob; Received this surveyor's plat late yesterday. The meets and bounds figures from McLanes are slightly different from the figures provided last week. I'm assuming at this point that they took a harder look at it and came up with more precise figures. I sincerely hope this plat will resolve this matter. Sorry for the confusion. Please let me know if additional info is required. Jerry -----Original Message----- From: Bowen, Jerry -Alaska Sent: Wednesday, May 14, 2003 9:50 AM To: 'bob_fleckenstein@admin.state.ak.us' Subject: FW: Conversion of X & Y coordinates to meets & bounds (to/from survey/lease lines) Bob; Below is the answer I received from Scott McLane, McLane Consulting Group, Soldotna, concerning the meets & bounds description of the proposed KGSF #3 surface and TD location. Please call if additional info is requested, or if I can be of service in any way. Thanks. Jerry F. Bowen, P.E. Advising Drilling Engineer Office: 907-263-7640 Cell: 907-360-2490 Home: 907-688-2278 Fax: 907-263-7884 -----Original Message----- From: Scott McLane [mailto:msmclane@mclanecg.com] Sent: Monday, May 12, 2003 4:20 PM To: 'Bowen, Jerry -Alaska' Subject: RE: Conversion of X & Y coordinates to meets & bounds (to/from survey/lease lines) Jerry The TD location is: 2142' FNL (The offset to the Gas Storage Lease south boundary should be 1818' and the total should add up to 3960') 4480' FEL (Subtract 2640' to get the Gas Storage Lease East Boundary offset which equals 1840' and the offset to the West should be 5280' minus 1840' which equals 3440') The Surface Location is: 1724' FNL 4040' FEL SECTION 27 T8N R9W SM AK Scott -----Original Message----- From: Bowen, Jerry -Alaska [mailto:jbowen@unocal.com] Sent: Friday, May 02, 2003 2:53 PM ,f2 5/21/2003 8:32 AM .. To: msmclane@mclanecg.com Subject: Conversion of X & Y coordinates to meets & bounds (to/from survey/lease lines) Scott; Can you possibly convert the following X & Y coordinate to meets and bounds measurement (i.e. distances and directions from survey lines & unit boundaries)? E 348,527.00 N 2,469,562.00 Hopefully you can do this for us. Call if you need to discuss. The KGSF #3 AFE to charge your time to would be #160443. Thanks. )f2 5/21/2003 8:32 AM UNOCALe ~l~ b \~~v-t \ ),," ~ oJ ; ~ ~ ~ .. o.-...j ~ ~ ~~ ~ ...... ~ \ KGSF#3 Proposed Well Profile - Geodetic Report ' Report Date: Client: Field: Structure I Slot: Well: Borehole: UWI/API#: Survey Name I Date: Tort I AHD I DDlI ERD ratio: Grid Coordinate System: Location LaULong: Location Grid N/E Y/X: Grid Convergence Angle: Grid Scale Factor: May 5, 2003 Unocal Swanson River Unit d Swanson River / KGSF#3 IlIty stu Y KGSF#3 5111 bill I KGSF#3 Fea 501332052300 KGSF#3 (P6) / May 5, 2003 154.309° /3392.11 ft /5.821/ 0.54¿ NAD27 Alaska State Planes, Zone 04, US Feel N 60.75796562, W 150.84436974 N 2469944.758 ftUS, E 348982.393 ftUS -0.73677937° 0.99992595 I KBE KOP Bid 1.5/100 Station ID Crv 1.5/100 End Crv Schlumberger Survey I DLS Computation Method: Minimum Curvature / Lubinski Vertical Section Azimuth: 222.450° Vertical Section Origin: N 0.000 ft, E 0.000 ft TVD Reference Datum: KB TVD Reference Elevation: 191.0 ft relative to MSL Sea Bed I Ground Level Elevation: 170.000 ft relative to MSL Magnetic Declination: 20.578° Total Field Strength: 55475.949 nT Magnetic Dip: 73.594° Declination Date: May 17, 2003 Magnetic Declination Model: BGGM 2002 North Reference: True North Total Corr Mag North -> True North: +20.578° Local Coordinates Referenced To: Well Head -' Grid Coordinates Geographic Coordinates MD I Incl Azim TVD I TVDss VSec N/-S EJ-W I DLS Northing I Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (°/1 DOft) (ftUS) (ftUS) 0.00 0.00 70.00 0.00 -191.00 0.00 0.00 0.00 0.00 2469944.76 348982.39 N 60.75796562 W 150.84436974 500.00 0.00 70.00 500.00 309.00 0.00 0.00 0.00 0.00 2469944.76 348982.39 N 60.75796562 W 150.84436974 600.00 1.50 70.00 599.99 408.99 -1.16 0.45 1.23 1.50 2469945.19 348983.63 N 60.75796685 W 150.84436287 700.00 3.00 70.00 699.91 508.91 -4.64 1.79 4.92 1.50 2469946.48 348987.34 N 60.75797052 W 150.84434224 800.00 4.50 70.00 799.69 608.69 -10.44 4.03 11.06 1.50 2469948.65 348993.50 N 60.75797665 W 150.84430791 900.00 5.77 60.98 899.29 708.29 -18.68 7.81 19.15 1.50 2469952.32 349001.64 N 60.75798699 W 150.84426268 1000.00 7.13 55.30 998.66 807.66 -29.50 13.78 28.64 1.50 2469958.17 349011.21 N 60.75800332 W 150.84420963 1100.00 8.53 51.45 1097.72 906.72 -42.88 21.93 39.55 1.50 2469966.18 349022.22 N 60.75802561 W 150.84414864 1200.00 9.97 48.69 1196.42 1005.42 -58.81 32.27 51.85 1.50 2469976.36 349034.65 N 60.75805389 W 150.844079~ 1300.00 11.42 46.62 1294.68 1103.68 -77.29 44.79 65.55 1.50 2469988.70 349048.51 N 60.75808814 W 150.844003z~' 1400.00 12.88 45.02 1392.44 1201.44 -98.29 59.46 80.62 1.50 2470003.17 349063.76 N 60.75812827 W 150.84391903 1500.00 14.35 43.73 1489.63 1298.63 -121.82 76.30 97.07 1.50 2470019.80 349080.43 N 60.75817433 W 150.84382707 1600.00 15.82 42.69 1586.18 1395.18 -147.84 95.27 114.88 1.50 2470038.54 349098.48 N 60.75822622 W 150.84372750 1700.00 17.30 41.81 1682.03 1491.03 -176.34 116.38 134.04 1.50 2470059.40 349117.91 N 60.75828397 W 150.84362038 1800.00 18.79 41.07 1777.10 1586.10 -207.31 139.60 154.54 1.50 2470082.35 349138.70 N 60.75834748 W 150.84350577 1900.00 20.27 40.44 1871.35 1680.35 -240.72 164.93 176.35 1.50 2470107.39 349160.84 N 60.75841677 W 150.84338384 2000.00 21.76 39.89 1964.70 1773.70 -276.55 192.33 199.48 1.50 2470134.49 349184.31 N 60.75849172 W 150.84325453 2039.00 22.34 39.69 2000.84 1809.84 -291.18 203.58 208.85 1.50 2470145.62 349193.83 N 60.75852249 W 150.84320214 KGSF#3 (P6) report.xls Schlumberger Private Page 1 of 3 5/5/2003-9:42 AM Grid Coordinates Geographic Coordinates I Station ID MD Incl Azim TVD TVDss I VSec N/-S I EI-W DLS Northing Easting Latitude I longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/100ft) (ftUS) (ftUS) 9-5/7" Csg pt 2039.17 22.34 39.69 2001.00 1810.00 -291.24 203.63 208.89 0.00 2470145.67 349193.87 N 60.75852263 W 150.84320192 Bid 2/100 2089.00 22.34 39.69 2047.09 1856.09 -310.16 218.21 220.98 0.00 2470160.09 349206.14 N 60.75856251 W 150.84313433 2100.00 22.56 39.69 2057.26 1866.26 -314.35 221.44 223.66 2.00 2470163.29 349208.86 N 60.75857135 W 150.84311934 2200.00 24.56 39.69 2148.92 1957.92 -354.27 252.19 249.19 2.00 2470193.70 349234.79 N 60.75865546 W 150.84297661 2300.00 26.56 39.69 2239.13 2048.13 -397.36 285.39 276.74 2.00 2470226.54 349262.76 N 60.75874627 W 150.84282258 2400.00 28.56 39.69 2327.78 2136.78 -443.57 320.99 306.28 2.00 2470261.76 349292.75 N 60.75884365 W 150.84265743 2500.00 30.56 39.69 2414.76 2223.76 -492.84 358.94 337.79 2.00 2470299.30 349324.74 N 60.75894746 W 150.84248126 End Bid 2589.00 32.34 39.69 2490.69 2299.69 -539.22 394.67 367.44 2.00 2470334.64 349354.85 N 60.75904519 W 150.84231549 Drp 2/100 3364.00 32.34 39.69 3145.49 2954.49 -953.29 713.67 632.20 0.00 2470650.19 349623.67 N 60.75991776 W 150.840835~ 3400.00 31.62 39.65 3176.03 2985.03 -972.34 728.35 644.37 2.00 2470664.71 349636.03 N 60.75995791 W 150.840767.__, 3500.00 29.62 39.55 3262.08 3071.08 -1023.20 767.59 676.83 2.00 2470703.52 349668.99 N 60.76006524 W 150.84058566 3600.00 27.62 39.42 3349.86 3158.86 -1071.03 804.55 707.29 2.00 2470740.09 349699.92 N 60.76016634 W 150.84041535 3700.00 25.62 39.28 3439.25 3248.25 -1115.77 839.20 735.70 2.00 2470774.37 349728.77 N 60.76026112 W 150.84025650 3800.00 23.62 39.12 3530.16 3339.16 -1157.37 871.48 762.03 2.00 2470806.30 349755.51 N 60.76034941 W 150.84010928 3900.00 21.62 38.93 3622.46 3431.46 -1195.76 901.36 786.25 2.00 2470835.87 349780.11 N 60.76043114 W 150.83997386 4000.00 19.62 38.70 3716.05 3525.05 -1230.91 928.81 808.33 2.00 2470863.03 349802.54 N 60.76050622 W 150.83985040 4100.00 17.63 38.42 3810.80 3619.80 -1262.78 953.78 828.24 2.00 2470887.74 349822.77 N 60.76057452 W 150.83973907 4200.00 15.63 38.07 3906.62 3715.62 -1291.31 976.25 845.95 2.00 2470909.98 349840.76 N 60.76063599 W 150.83964004 4300.00 13.63 37.63 4003.37 3812.37 -1316.49 996.19 861.46 2.00 2470929.71 349856.53 N 60.76069053 W 150.83955332 4400.00 11.64 37.03 4100.94 3909.94 -1338.28 1013.57 874.73 2.00 2470946.92 349870.02 N 60.76073807 W 150.83947912 4500.00 9.64 36.19 4199.22 4008.22 -1356.64 1028.38 885.75 2.00 2470961.59 349881.23 N 60.76077857 W 150.83941750 4600.00 7.65 34.92 4298.08 4107.08 -1371.57 1040.60 894.50 2.00 2470973.69 349890.13 N 60.76081200 W 150.83936858 4700.00 5.67 32.77 4397.40 4206.40 -1383.04 1050.21 900.99 2.00 2470983.22 349896.74 N 60.76083829 W 150.83933229 4800.00 3.70 28.32 4497.06 4306.06 -1391.03 1057.21 905.19 2.00 2470990.16 349901.03 N 60.76085743 W 150.83930880 4900.00 1.80 14.22 4596.94 4405.94 -1395.55 1061.57 907.11 2.00 2470994.50 349903.01 N 60.76086936 W 150.8392980P End Drp 4990.89 0.84 296.52 4687.81 4496.81 -1396.62 1063.25 906.86 2.00 2470996.18 349902.78 N 60.76087395 W 150.839299' Bid 4/100 5123.84 0.84 296.52 4820.75 4629.75 -1396.09 1064.12 905.13 0.00 2470997.07 349901.06 N 60.76087633 W 150.8393091'~ 5200.00 3.37 236.23 4896.85 4705.85 -1393.76 1063.12 902.76 4.00 2470996.10 349898.68 N 60.76087360 W 150.83932238 5300.00 7.32 228.72 4996.40 4805.40 -1384.56 1057.28 895.53 4.00 2470990.36 349891.38 N 60.76085763 W 150.83936281 5400.00 11.30 226.47 5095.06 4904.06 -1368.45 1046.32 883.63 4.00 2470979.55 349879.34 N 60.76082765 W 150.83942935 5500.00 15.30 225.38 5192.36 5001.36 -1345.49 1030.30 867.13 4.00 2470963.75 349862.63 N 60.76078383 W 150.83952161 5600.00 19.29 224.74 5287.82 5096.82 -1315.80 1009.29 846.10 4.00 2470943.01 349841.34 N 60.76072636 W 150.83963919 5700.00 23.29 224.31 5380.98 5189.98 -1279.52 983.40 820.65 4.00 2470917.45 349815.56 N 60.76065555 W 150.83978149 5800.00 27.29 224.00 5471.38 5280.38 -1236.83 952.75 790.91 4.00 2470887.19 349785.43 N 60.76057171 W 150.83994778 5900.00 31.29 223.76 5558.58 5367.58 -1187.93 917.50 757.02 4.00 2470852.38 349751.09 N 60.76047530 W 150.84013727 Schlumberger Private KGSF#3 (P6) report. xis Page 2 of 3 5/5/2003-9:42 AM Grid Coordinates Geographic Coordinates Station 10 MO Incl Azim TVO TVOss I VSec N/·S EI-W I OLS Northing Easting Latitude I Longitude (ft) (0) (0) (ft) (ft) (ft) (ft) (ft) (0/10Off) (ftUS) (ftUS) 6000.00 35.28 223.57 5642.16 5451.16 -1133.08 877.80 719.13 4.00 2470813.17 349712.70 N 60.76036671 W 150.84034913 6100.00 39.28 223.42 5721.70 5530.70 -1072.52 833.87 677.45 4.00 2470769.79 349670.46 N 60.76024655 W 150.84058217 6200.00 43.28 223.29 5796.84 5605.84 -1006.57 785.90 632.16 4.00 2470722.41 349624.56 N 60.76011534 W 150.84083540 6300.00 47.28 223.18 5867.18 5676.18 -935.53 734.14 583.50 4.00 2470671.28 349575.24 N 60.75997376 W 150.84110747 6400.00 51.28 223.08 5932.40 5741.40 -859.76 678.84 531.70 4.00 2470616.65 349522.74 N 60.75982250 W 150.84139709 6500.00 55.28 222.99 5992.18 5801.18 -779.62 620.27 477.00 4.00 2470558.80 349467.29 N 60.75966229 W 150.84170292 6600.00 59.28 222.91 6046.23 5855.23 -695.51 558.70 419.68 4.00 2470497.97 349409.19 N 60.75949388 W 150.84202340 6700.00 63.28 222.84 6094.27 5903.27 -607.84 494.45 360.02 4.00 2470434.50 349348.71 N 60.75931813 W 150.84235696 6800.00 67.28 222.77 6136.08 5945.08 -517.02 427.82 298.31 4.00 2470368.67 349286.16 N 60.75913588 W 150.842701Ç' 6900.00 71.28 222.71 6171.46 5980.46 -423.51 359.15 234.85 4.00 2470300.83 349221.82 N 60.75894804 W 150.843056,_, 7000.00 75.28 222.65 6200.22 6009.22 -327.76 288.75 169.94 4.00 2470231.28 349156.02 N 60.75875547 W 150.84341967 7100.00 79.28 222.59 6222.24 6031.24 -230.23 216.98 103.90 4.00 2470160.37 349089.07 N 60.75855915 W 150.84378888 7200.00 83.28 222.53 6237.41 6046.41 -131.41 144.19 37.06 4.00 2470088.45 349021.30 N 60.75836004 W 150.84416255 7300.00 87.28 222.47 6245.64 6054.64 -31.77 70.73 -30.26 4.00 2470015.87 348953.05 N 60.75815910 W 150.84453891 7340.00 88.88 222.45 6246.98 6055.98 8.21 41.24 -57.25 4.00 2469986.73 348925.68 N 60.75807843 W 150.84468980 End BId / Target /7" Csg 7341.00 88.92 222.45 6247.00 6056.00 9.21 40.50 -57.92 4.00 2469986.00 348925.00 N 60.75807641 W 150.84469355 TO /4-1/2" Lnr 7922.68 88.92 222.45 6258.00 6067.00 590.79 -388.61 -450.47 0.00 2469562.00 348527.00 N 60.75690259 W 150.84688802 leaal Description: Northin~ (y) rftUSl Surface: 2469944.76 Target: 2469986.00 TO I BHL: 2469562.00 Eastin~ (X) rftUSl 348982.39 348925.00 348527.00 .~ KGSF#3 (P6) report.xls Schlumberger Private Page 3 of 3 5/5/2003-9:42 AM 0-··..·..·....·..···..···.......·..··......·....·...·.......·.., 1000 - ...........,................"..... ......................! 2000 - ....,............................... .- ã5::::ì .æcn O~ o Q) o > T- 0 II .c CO . ~ .:t= T-O "-"'0 £~ a.0> (l.)T- 000 m~ o.¡..: 1:: (I.) (1.)0::: > > (I.) (I.) 2W t- 3000 _.................... i i ·..........·ì 4000 _. i i i ........................................................1........... 5000 - ..................,......................... 6000 _. ) ) VERTICAL SECTION VIEW Client: Unocal Well: KGSF#3 (P6) Field: Swanson River Unit Structure: Swanson River Section At: 222.45 deg Date: May 05, 2003 i ..·..r...... i I I i I I I ..........·..··..·..1 ! I t I t i i i "''''''I i ...¿.................................... KOP Bid 1.5/1100 __- 500 MD 500 tVD 1- 0.00' 70.00' ~z o departure i i -"-.- Cry 1.5/100 I 800 MD 80011VD ...4.50.:....zo_oa:..~z.. -10 departure ! I i I I ··---······1 .,................,..~................,,,.... End Cry / 95/S" Clg PI 2039 MD 2001 TVD /" 22.34' 39.69' az I' d 1 / ·291 departure .... ...~.........._............................................................... ..·..1 ~ I ~ Bid 2/100 2089 MD 2047TVD 22.34' 39.69' az -310 daparture i I I "]' i I I i ...........1. I i i ¡ i I Hold Angle 32.340 ~nd Bid ~589 MD 2491 TVD 32.34' 39.69' az .........·..·......·:"$'31ïëîë¡:;ë'iïü,ë.......... ..............................-......... Drp 2/100 3384 MD 3145 TVD 32.34' 39.89' az -953 departure ....................................... .........~...............................,........,..,............. I End D,p ~¡ 4991 MD 4888 TVD 0.84' 298.52' az X/- I -1397 departure ----+- Bid 4/100 i 5124 MD 4821 TVD .................. . ................ ......j ........Ö:ä4'....29iï:šï'ïï£ I ·1396 departure ¡ ....t i ............................................,'. .....................,..,.................,........".................... I I i End Bid / Ta'goll7" Clg ! 7341 MD 6247 TVD 88.92' 222.45' az 9 departure / ·..·······..··············ir· ---L1 / o ~ TD /4.d" Ln' 7923 MD' 6258 TVD ...... ..... ...... ....ß8.92~..j22~~~.~~.. 591 dap~ur6 ....... ,..,.. ..... ........ . ............... .....'........... .......... ............................... .. .. ........ I -2000 -LI o ~ Hold Angle 88.920 I -1000 0 1000 Vertical Section Departure at 222.45 deg from (0.0, 0.0). (1 in = Schlumberuer i ................ ...................i. ! ..1........ .......................................... ..·.......·....1..·.....·· I ..·..1 I ......... .., ,,,., I 2000 1 000 feet) '~ J ) PLAN VIEW Client: Unoeal Well: Field: Structure: Scale: Date: KGSF#3 (P6) Swanson River Unit Swanson River 1 in = 500 ft 05-May-2003 Schlumberger -1000 I -500 0 500 I I 1000 i I I i I i True North ............+....., Mag Dee ( ...........j",. E 20.58° i 1500 \ I 2000 -¡.... . ...... - 2000 I I ¡ 1500 _.¡ I I I i I ..IA I.N W· I i I i I ,.."......."."................ ...................... - 1500 I I- :J o en V V V I 0-.1 I i I i I i ! End Bid / Target /7" Cag 7341 MD 6247TVD 88.92" 222.45' 8Z 41 N 58 W I 50' Rad~ I ~ ......................~~..................................... ~ ~<S' -<;-,}> ..j................ ......................................... I I ! .................................... Bid 4/100 5124 MD 4821 TVD 0.84' 296.52" 8Z 1064 N 905 E I '\ . \ I ~;:1 D~6 4688 TVD -r- 0.84' 296.52' 8Z .........j........ 1063 N 907 E . .................i..·...·...............·............................ ................. - 1000 I 1000 -·1 I ^ ^ ^ I l- e::: o z .................................... 500-·..·................................ ...................,.................. ~ ,~'"J. ..·...·.......~~~~·~~9·~~~5~~Y.D................. 714 N 832 E ~ End Bid ~ 2589 MD 2491 TVD 32.34" 39.69' az ~N 395N 367E ~ Bid 2/100 2089 MD 2047 TVD ........................................... ' 22.34" 39.89' az ~ . \;~.:~:;,~~;:, .......... 22.34' 39.69' az 204 ~ 209 E KOP B,d 1.5/100 ~; ~~1~~0 TVDi 500 ~q 50~ TVD 4.50' 70.00" 8Z I ~.~00~0.008Z 4N 11E ; ...-500 ····-0 -500 _I... I 150' Radius I TD /4·112" Lnr I 7923 MD 6258 TVD 88.92' 222.45' 8Z 389 S 450 W ... - -500 -1000 -; .·...-·l.· .... ..-----.--.....¡.. --..... ..._".~.-......_-_.- -···----1·--····---··· --1000 _1500 -¡_...___n.._ I _.-.--- -1000 . ......--..--........---- ,-"-_._-" o ····---·.....··1..·- 500 -. --·..··-···---·--·..·1···...··-.. -...---'..-.-'..- 1000 .-- - -1500 1500 I -500 «< WEST EAST »> ) ) ~~]~E ~ F ~~~~~~~ FRANK H. MURKOWSK/, GOVERNOR ~ ATfA~&A. OIL A5D GAS CONSBRVATlON COJDIISSION Phil Krueger Drilling Manager Unocal . PO Box 196247 Anchorage AK 99519 333 W. -¡nt AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501·3539 PHONE (907) 279-1433 FAX (907) 276-7542 Re: Swanson River Unit Kenai Gas Storage Facility #3 Unocal Permit No: 203-074 Surface Location: 1780' FNL, 1120' FWL, Sec. 27, T8N, R9W, SM Bottomhole Location: 2109' FNL, 601' FWL, Sec. 27, T8N, R9W, SM Dear Mr. Krueger: Enclosed is the approved application for permit to drill the above referenced service well. This permit to drill does not exempt you from obtaining additional permits or approvals required by law from other governmental agencies, and does not authorize conducting drilling operations until all other required permits and approvals have been issued. In addition, the Commission reserves the right to withdraw the permit in the event it was erroneously issued. Operations must be conducted in accordance with AS 31.05 and Title 20, Chapter 25 of the Alaska Administrative Code unless the Commission specifically authorizes a variance. Failure to comply with an applicable provision of AS 31.05, Title 20, Chapter 25 of the Alaska Administrative Code, or a Commission order, or the terms and conditions of this permit may result in the revocation or suspension of the permit. Please provide at least twenty-four (24) hours notice for a representative of the Commission to witness any required test. Contact the Commission's North Slope petroleum field inspector at 659-3607 (pager). Sincerely, ~~~ Randy Ruedrich Commissioner BY ORDER OF mE COMMISSION DATED this <"tfday of April, 2003 cc: Department ofFish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. Exploration, Production and Refineries Section ) Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Telephone (907) 276-7600 UNOCAL8 :e,!~. Alaska Phil Krueger Drilling Manager April 17, 2003 Alaska Oil and Gas Conservation Commission 333 West ih Avenue Anchorage, Alaska 99501 Attn: Commission Chair Sarah Palin Re: Transmittal of Permit To Drill (form 10-401) Kenai Gas Storage Facility Well #3 Swanson River Unit Commissioner Palin: Attached for your approval is a completed Permit To Drill (form 10-401) for the Kenai Gas Storage Facility Well #3, which is scheduled to spud on approximately May 15, 2003. Please call myself at 263-7628 or Jerry Bowen at 263-7640 if additional information is required or if we can be of assisitance in any way. Sincerely, Y4· /¡!-~ ¡f" lor' Phil Krueger Drilling Manager Enclosure RECEIVED APR 2 1 Z003 Alaska Oi\ & Gas Cons. Commission Anchorage ~A-- &/-/t '!,/t.ðQ3 .' STATE OF ALASKA, ALASKA Oh_ ÀND GAS CONSERVATION C,-~MISSION PERMIT TO DRILL 20 AAC 25.005 1 a. Type of work Drill: X Re-Entry: 2. Name of Operator Union Oil of California (Unocal) 3. Address P.O. Box 196247 Anchorage, AK 99519 4. Location of well at surface 1780'FNL, 1120'FVVL, Sec. 27, T8N, R9VV, S.M. At top of productive interval 1580'FNL, 1060'FVVL, Sec. 27, T8N, R9VV, S.M. At total depth 2109' FNL, 601'FVVL, Sec. 27, T8N, R9VV, S.M. 12. Distance to nearest 13. Distance to nearest well property line 836 feet 16. To be completed for deviated wells Kickoff depth: 2350 feet 18. Casing program size Specifications Hole Casing VVeight Grade Coupling N/A 133/8" 68 K-55 / ß,-TC 12 1/4" 9 5/8" 53.5 L-80 ./ßTC 8 1/2" 7" 29 L-80 BTC 6" 3 1/2" tbg 9.2 L-80 IBTC 6" 3 1/2" screen 9.2 L-80 I BTC 19. To be completed for Redrill, Re-entry, and Deepen Operations. Present well condition summary Redrill: Deepen: 1 b. Type of well Service: X 32 / feet Maximum hole angle: 89° Length +/-40'-80' 2943' 6933' 6933' 582' Stratigraphic Test: Development Oil: Single Zone: X Multiple Zone: 10. Field and Pool / Tyonek 62-5 Sand Exploratory: Developement Gas: 5. Datum Elevation (OF or KB) 192.5' KB to MSL feet 6. Property Designation A-028406 I 7. Unit or property Name Swanson River Unit 8. VVell number Kenai Gas Storage Facility #:r/ 9. Approximate spud date 05/15/03 ,/ 14. Number of acres in property 11. Type Bond (see 20 AAC 25.025) Number U 62-9269 Amount $200,000 15. Proposed depth (MD and TVD) 800 7515 / 6259 17. Anticipated pressure (see 20 AAC 25.035 (e)(2)) Maximum surface 1560 / psig At total depth (TVD) Setting Depth feet 2798 psig Top Bottom Quantity of cement TVD MD. TVD .,Y/r (include stage data) 0'v)(\'K'+/-40>ßG!"'~l/-40'-80' .: \N/A - driven to refusal 0' Z.~ ~ z,. t,;d) 422 sx class 'G' @ 13 ppg ..- 0' ~: 6248.5' 334sx @ 13ppg & 63sx @ 15.8ppg 0' 6933' 6248.5' N/A 6248.5' 7515' 6259' N/A MD 0' 0' 0' 0' 6933' RECEIVED APR 2 1 2003 Alaska Oil & Gas Cons. Commission Anchorage 20. Attachments: Filing fee: X Property Plat: X BOP Sketch: X Drilling fluid program: X Time vs. depth plot: Refraction analysis: 21. I herby certify that the foregoing is true and correct to the best of my knowledge: Diverter Sketch: X Seabed report: Drilling program: X 20 AAC 25.050 requirements: SigneY ~ /¡(Z'¿ <"...--------- Phil Krueger C:~%iSSiO~~~:go~~nager Date: 4/1712003 Permit Number '?/-,,:::2 .A7IL API number 3 I Appro'£,g~1a~ ,ß / I See cover letter ~ ~ -v T 50-( 3 - 2(:) 523~Q) U77 ~ { .ð 3 for other requirements Conditions of approval Samples required: [] Yes WNo Mud log required: [] Yes .M No Hydrogen sulfide measures [] Yes 1>'1 No Directional survey required )\1 Yes [] No _ . ' RequiredworkingpressureforBOPE []2~; []3M; [].5M; []10M; []15M T-e.si "'BOPE to 5000 ()St. J'i.1 "- Other: H~r'" 1,..0 AAc.. l.S", o~S"(k\(~)} ;"2..." ~\le.vt4'-v- ,,~t ¡i'iN¿ ¡~ ~)~i'O\leJ .1Jl.1:Tj c.hA..r ~t<'l.L~r-¡ "j ~¿''-<.N'~ Approved by ~ IE ~ . ~ Commissioner ::eo~o::SSion Date: Or,;;/z..#""'3 Form 10-401 Rev. 12-1-85 (0'" L!¡·, Submit in triplicate \, ) ) WAIVER REQUEST Unocal respectfully requests a waiver to AOGCC regulation 20 AAC 25.035 (C) 1 & 2 for the Kenai Gas Storage Facility Well #3 Permit to Drill. The diverter equipment supplied by Nabors for Rig #129 includes a 12" diverter spool outlet, a 300 psi 12" knife valve, and 100' of flanged 12" diverter line. AOGCC regulation 20 AAC 25.035 (C) 1 requires a 16" diverter line ....... "unless a smaller diameter is approved by the commission to account for smaller hole size, geological conditions, rig layout, or surface facility constraints" AOGCC regulation 20 AAC 25.035 (C) 2 requires a diverter line ....... frat least as large as the diameter of the hole to be drilled, unless a pilot hole with a diameter no larger than that of the vent line is drilled first; the commission will waive the requirement of this paragraph if the operator demonstrates, based on drilling experience in the near vicinity, that drilling a pilot hole would not be necessary for safety" Bas on our recent drilling experience in Swanson River Field, we are of &é 0 inion that we can drill the 12 1/4" hole to a depth of approximately / ... 00/ with the existing 12" diverter line, without additional risk to personnel . .. 0 the environment. We are working on a risk mitigation strategy which will include using a heavier than required spud mud and/or pumping out of the hole to eliminate the swab risks. ~ ------- ------- GRAPHIC SCALE 50 0 25 50 100 ~..,..~ I I ( IN FEET) 1 inch = 50ft. ~- ------- ------- ------- ~ ,,-..- 12-27 GRID N:2469974.619- GRID E:348971.896 LATITUDE: 60°45'28.969" LONGITUDE: 150°50'39.950" ASP ZONE 4 NAD27 1724.00' FNL 4040.37' FWL SECTION 27, T8N, 9W SEWARD MERIDIAN, AK ELEVATION = 173.33' rr LEGEND & NOTES ~ HORIZONTAl DATUM: ASP ZONE 4, NAn27 VERTICAl DATUM: NAVD 88 @ SET 5/8" REBAR WITH TAL CN' ® EXISTING WELL LOCATIONS o <Q., íYYY\ ~---- PIPE EXITS POWER POlE EXISTING TREE LINE OVERHEAD ELECTRIC ". ." . ------- GRID N:2470101.127 GRID E:348991.493 LATITUDE: 60°45'30.217" -LONGITUDE: 150°50'39.588" _ELEVATION: 176.02' ~ SCALE: '" = SO' 10'DIA. WEll CASING ---i\ 36" CASING ¿) CÐ ABANDONED WEll SWANSON RIVER FI~ PAD 212-27L\ 228.7' METHONAl TANK ~ ON~KI~S ~ I ~ ~ 212-27 )b . GUARD PIPES~ tw 10' ARCTIC THERM ~ \ WELL ;~: >f UNIT ON SKIDS ~~O ~ --{ ~ ~ ~ \,\~ !..( -( "\~~ --{ -/--{--.{ 'yyy y y --( UNOCAL PAD 212-27 AS BUlL T ) GUARD PIPES JUNK GLYCOL TANK ON SKIDS ~ GRID N:2469826.993 GRID E:349190.534 LATITUDE: 60°45'27.543" LONGITUDE: 150°50'35.512" _ELEVATION: 173.24' _ 212-27 GRID N :2469840.115 GRID E:349075.753 LATITUDE: 60°45'27.658" LONGITUDE: 150°50'37.825" _ELEVATION: 174.49' ....',,,,,.., {~~ . ,,,,,,'\,,.... ~ š ~ :5 ~ ~ ~ > . 0 g ~ ... í Zf'-.-'" ONe CV)NŠ Z~.. <{Ng U~ ~!. azQ... 0° ---l Z:~ LLc:::::a UJ' ..(3~$- ..,~æ~ ~ ~ ~ J €i!§ '" ~~H ~ \J'\ ~~xl i!:5 ~~;:::t Ii ~ ~~.,c \)1-'- ~..~~ Qc: ~~d§ fI3 U)(N.:J -d §~~~ j§a:; ffi ~ ~ " " i ð '" i ~ SWANSON RIVER FIELD KENAI GAS STORAGE FACILITY 800 ACRE LEASE I ~~~iMIIW~JMlIiI! 43-28 . 81 I 21A-34 0' 1,000' SCALE ... ~Io¡o:- _ SHOWN DnliMlIo¡o: co....... 23-27 SI ) Surface Use Program for Kenai Gas Storage Facility Well #3 1) Existing Roads See Map 2) Access Roads to be Constructed and Reconstructed Roads and Pad are already in place. 3) Location of Existing Wells See attached maps 4) Location of Existing and/or Proposed Facilities An existing gas flow line which extends from the existing Swanson River Field Facilities to the subject well will serve as the conduit to bring gas to the well to be stored during periods of low gas demand, and to produce gas from the storage well during periods of high gas demand. No additional surface facilities will be required at the well site to initiate gas storage, or to produce stored gas at a later date. 5) Location and Type of Water Supply The fresh water required to drill and complete KGSF #3 is available from the adjacent facilities. No new water source will be required. 6) Construction Materials N/A 7) Methods of Handling Waste Disposal The cuttings from the KGSF #3 well will be disposed of in the permitted Swanson River Central Drilling Waste Disposal Facility. The facility is currently permitted by the Alaska Department of Environmental Conservation to allow for the construction and filling of ten waste cells per year, however typically only one cell is filled and a new one opened every few years. The cuttings from this well will be placed in the currently open cell, designated Cell #9. Class II liquids associated with the drilling program will be injected into one of the permitted Class II disposal wells at Swanson River Field. Low viscosity aqueous fluids will be injected with the produced water stream and higher viscosity liquid muds will be injected into a well primarily used for disposal of this type of fluid. Any Hazardous Wastes such as paint related waste, lead-acid batteries, or other RCRA wastes will be disposed of through Philip Services Inc., our current Hazardous Waste Contractor, at a permitted RCRA Treatment, Storage, and Disposal Facility. ) 8) Ancillary Facilities Three small trailers will be present on the drill site for use by the Unocal drilling supervisor and the contract drilling rig toolpusher. 9) Well Site Layout See attached pad layout diagram 10) Plans for Reclamation The road and pad for the proposed well will not be able to be reclaimed because they will be in use. There is a high probability that the storage well can be successfully completed and placed in service, so there is only a low probability that the location will no longer be needed. In addition, well 212-27 is located on the same pad, but is currently shut-in awaiting clean-out with coil tubing to be returned to production. 11) Surface Ownership BLM, Federal Government 12) Other Information None 13) Leassee's Representative and Certification Phil Krueger, Drilling Manager, Unocal Alaska 907 -263-7628 ) ) Unocal Alaska Business Unit Gas Storage Project Kenai Gas Storage Facility Well #3 UNOCALe Drill & Complete Grass Roots Horizontal Gas Storage Well No. Preliminary Procedure Time Estimate (Hours) CUM Time (Hours) CUM RIG Time (Days) Step # PROCEDURE STEPS (short Description) PREDRILL ACTIVITIES NOT COUNTED IN RIG TIME REQUIREMENTS Mobilize rig and preset drive pipe @ 40-80', drill mouse 1 hole 2 Dig cellar & install corrugated steel around wellhead MI & RU Drilling Rig. Inspect and prepare to take rig 3 on Daywork 72.0 0.0 RIG TIME REQUIREMENTS TO DRILL WELL FROM START DATE OF May 15,2003 Take Rig on Daywork, HOLD PRE SPUD AND 4 SAFETY MEETINGS 5 RU TDS 6 Nipple up Diverter & test same / 7 PU 12 1/4" rotary BHA & 2000' of 4" DP. 8 Drill 12 1/4" hole to 2000' MDND 9 C&C for Casing. POOH 10 Run & cement 9 5/8" casing. 11 ND diverter. 12 NU & test MBS wellhead & BOPE. / 13 PIU 5000' of 4" drillstring / 14 Change over to OBM ../ 15 PU 8 1/2" steerable LWD BHA & RIH to 2000'. 16 Drill out, perform LOT & displace hole wi OBM./ 17 Drill 8 1/2" hole to 90° at 6933' MD I 6247' YD. 18 Make Wiper Trip and C&C hole. 19 POH to run casing, change rams, etc.. 20 Run 7" production/intermediate casing. /' 21 C&C hole. 22 Cement 7" casing. 23 Change rams & test BOPE (weekly test required). 24 PIU 6" steerable BHA & RIH to 6900'. Drill shoe track & drill 500' HZ section to 7515' MD I 25 6259'VD. 26 C&C hole. POH LID drill string & BHA. 27 RIH wi 3 1/2" screen, 3 1/2" tubing & perm packer. ./ 48.0 24.0 0.0 0.0 0.0 0.0 0.0 / 6.0 24.0 18.0 4.0 36.0 6.0 12.0 8.0 24.0 8.0 8.0 6.0 6.0 120.0 8.0 12.0 14.0 4.0 4.0 8.0 12.0 6.0 30.0 48.0 52.0 88.0 94.0 106.0 114.0 138.0 146.0 154.0 160.0 166.0 286.0 294.0 306.0 320.0 324.0 328.0 336.0 348.0 0.3 1.3 2.0 2.2 3.7 3.9 4.4 4.8 5.8 6.1 6.4 6.7 6.9 11.9 12.3 12.8 13.3 13.5 13.7 14.0 14.5 /i 20.0 18.0 18.0 368.0 386.0 404.0 15.3 16.1 16.8 KGSF 3 AFE (revised).xls Page 1 of 2 4/17/2003 ) ') Unocal Alaska Business Unit Gas Storage Project Kenai Gas Storage Facility Well #3 UNOCALe Drill & Complete Grass Roots Horizontal Gas Storage Well No. Preliminary Procedure Time CUM CUM Estimate Time RIGTime (Hours) (Hours) (Days) RU S-line. Run N-test tool, set packer, test tbg & 28 casing, POH. RD S-line. 8.0 412.0 17.2 29 Set BPV. ND BOPE. 8.0 420.0 17.5 30 NU & test X-mas Tree. 5.0 425.0 17.7 30 RD TDS. ,/ 20.0 445.0 18.5 31 RD AND RELEASE RIG 48.0 493.0 20.5 ---' CTU Clean-Qut 32 Clean location 48.0 0.0 0.0 32 RJU CTU & flowback equipment. 24.0 0.0 0.0 RIH to PBTD at +1-7500'. Displace OBM & circ clean 33 wi solvents & N2. POH. 24.0 0.0 0.0 34 RID CTU & flowback equipment. 12.0 0.0 0.0 35 Turn well over to Production to hook up flowline. 24.0 0.0 0.0 85 KGSF 3 AFE (revised).xls Page 2 of 2 4/17/2003 PLAN VERSUS DEPTH 6' "1~rrT7iiMi-~ 5 () UNOCAL'" Marker Base Glacial Sterling Top Sterling B Zone Beluga Top Tyonek Top Tyonek D 1 Coal Total Depth Formation Tops KGSF #3 Swanson Rive"Unit Kenai Gas Storage Facility #3 FORMATION TOPS KGSF #3 ANTICIPATED FORMATION TOPS Elev 173.3' RKB 192.5' KGSF #3 MD TVD 630 630 2662 2659 3482 3432 4704 4579 5481 5315 5893 5720 7515 6259 TVDSS -437.5 -2466.5 -3239.5 -4386.5 -5122.5 -5527.5 -6066.5 4/17/2003 UNOCALsi ') Swanson River Unit KGSF Well #3 LOGGING PROGRAM LOGGING PROGRAM The following constitutes the proposed geological and evaluation logging program for the subject well. 12-1/4" SURFACE HOLE FROM 0' TO SHOE OF 9-5/8" @ +/-2000' CASED HOLE LOGS ANTICIPATED LOGGING DATE: 18 May REQUIRED LOG None 8 1f2" INTERMEDIATE HOLE FROM +/-2000' TO SHOE OF 7" @ +/-6933' OPEN HOLE LOGS ANTICIPATED LOGGING DATE: 21 May PLANNED LOG MWD/GR to TD* *Note: No shallow pay expected. End of section at 890 inclination. Will locate & land in objective Tyonek 62-5 reservoir based on MWD/GR, mud log response, and correlation with nearby offset wells. 6" HORIZONTAL HOLE FROM +/-6933' TO TOTAL DEPTH @ +/-7515' OPEN HOLE LOGS ANTICIPATED LOGGING DATE: 26 May PLANNED LOG MWD/GR to TD* *Note: Will drill HZ section in objective Tyonek 62-5 reservoir based on MWD/GR, mud log response, and correlation with nearby offset KGSF #2 HZ hole. CASED HOLE LOGS PLANNED LOG FROM 0' TO SHOE OF 7" @ +/-6933' None OTHER GEOLOGIC EVALUATION MUD LOGGING /. ) Mud logging will be conducted from the shoe of the 9-5/8" t/until total depth. GAS DETECTION Gas detectors will be functional and running prior to spud. CORING No core is planned for this well. LOGGING PROGRAM 4/17/2003 UNOCALe RKB = 191' AMSL .& . . . . ·l~. : : : : : : -I : : : ;¿ ;n ··þ·.·~·......:..:7:::: . .. ..., . .. ... .. ... . . .. ... . . . . , .. . " :::.::::/ ) s~Jnson River Unit Kenai Gas Storage Facility #3 Proposed Schematic 3/28/03 CASING & TUBING DETAIL SIZE WT GRADE TOP BOTTOM 13 3/8" 68 K-55 0' 40~' 9-5/8" 53.5 L-80 (BTC) 0' ~OO' "l~cf"S~ 7" 29 L-80 (BTC) 0' --:-5OÕÔ ' 7" 29 L-80 (BTC KC) 5000' 6100' 7" 29 L-80 (BTC TKC) 6100' 6933' 3 Yz" 9.2 L-80 (IBTC SCC) 0' 6933' 3 12" 9.2 L-80 (JBTC SCC) SS WW Screen 6933' 7515' 9 5/8" surface casing cemented to w/ 13 ppg 'H' + gel extended (40% excess) PROPOSED JEWELRY DETAIL NO. Depth Item 1. +/-1900' Methanol injection port (ID= 2.813") 2. +/-6400' 7" x 3 Yz" SAB-3 perm packer, K-22 anchor seal assemb ly 3. +/-6420' 3 1/2" 'XN' nipple (min. ID = 2.75") Bit sizes = 12 ~", 8 12" & 6" 7" casing cemented to 9 5/8" shoe w/ 13 ppg 'H' + gel extender lead slurry & 500' of 15.8 ppg class 'H' tail slurry (assume 30% excess required) ~::::::::::::?:.... ···-:2J:::::Â- __ H:::::»:::~ f /3 111111111111111111111111111111 ~ 7::::::::::::"'1 Hydraulic set packer @ +1- 60° inclination forWirell~e:s~ttl~g: ~ TD = 7515' M~ 16259' YD 7" shoe between top of reservoir and landing point @ 85° - 90° inclination KGSF#3 Prop Schematic 3-28-03.doc Drawn: 04/17/03 DRAWN BY: JFB ,) sper""r""Y-sUl"1 Alaska OAILLING SU¡I"tVICC5 Kenai & Cook Inlet A ....~....-. ConIpony UNOCAL8 Alaska ':!'WillW~ ) Kenai Gas Storage Facility DrillQuest" KGSF #3 Wp 2.0 Eastings(SHL) Scale: 1 inch = 500ft ·500 I 500 I Begin Dir @ 6.000°/10011: 5113.93ft MD. 4963.8911 TVD - 500 :::J I Cf) V; C> c: E t o Z 13JHOinCOndUClOr HO.<K)ftMD HO.OOftTVD 0- - - - ~ l-13-3I8"Corduclor... Begin 12-1/4" Hole: 80.0011 MD. 80.0011 TVD I KI,SF #31'1 I hUH-50 'TV/J 40.50 N. 57.n W I End Dir, Start Sail @ 88.916° : 6932.901IMD.6248.501tTVD I , t . Begin 8-1/2' Hole: 2000.00lt MD. 2000.0011 TVD ,,';) ~~' TOlal Depth: 5;.~'" 7514.54ltMD 0'" 6259.5011TVD ~ > 112in jn<r 'Íf K/;SF #312 75145411MD h259.50 '1'\1/J 625'150tlTVD 3HH.5H S. 450.43 W .IK,.IK' 9-5/8" Casing PI . 900 - t I{XIII,OIl t ~S(K)'(10 1800 - .. x>.(K) End Dir. Start Sail @ 20.251°: 2856.28ltM D .2845.801tTVD Begin Dir @ 4.000°/10011 : 2350.0011 MD, 2350.00lt TVD -------0 49.77 I 13·318" Conductor ... 7in jn<r Begin 12-114" Hole: 70>2.IX)!IM1i 80.00lt MD. 80.00lt TVD 6250J7t1TVI¡ I § II ~ (,) c: ~ (fJ l)5/HinCasing /:. 2IXXUX>flMD ..JJw.oo.g.5/8" Casing PI... Begin 8·1/2" Hole: 2000.0011 MD 2000.00lt TVD I 2IXXUX)ftTVD . Current Well Properties KGSF #3 _¡(x>.m -Begin Dir @ 4.000°110011 : 2350.00lt MD, 2350.001t TVD :::J (f) ::2: Ít) 2700 - C\Ï (» II CC ~ fS .c ã. Q) o ëii 3600 - u :e Q) > I TEnd Dir, Slart Sail @ 20.251°: 2856.28fIMD,2845.801tTVD ( ~KMUr I KGSF #3 Target Data Measurement Units: It Target Coordinate Vertical Depth Northlngs Eastlngs Vertical Depth Northlngs E:;~"jS Target Name Point TypeAKB = 192.5' MSL SHL SHL Mean Sea Level ASP·4 Shape (ft) (ft) (ft) (ft) (ft) (ft) KGSF #3 TI Entry Point 624H. 50 40.50 N 57.92 W (¡056.lX) 246l)l)H6.00 N 34H925.m E Point KGSF #3 T2 Entry Point 625'1.50 3HH. 5H S 450.43 W 6067.(X) 246l)562.(X) N 34H527.(X) E Point ~~o ~\~~O ~~:§)~'2-,:>Ç)~ ~O~'2' ~O:<) ~ ~ ~'2-~ ~'2-!:S ~ ..6 ~0 ..10 <tÞ~'~ 6 '>(.0 I cj>~ @ :~e~ > 1/2in I in", I ""::J'Ø~ ç\" 75145·H,MD 0'\' v'l>~ß\~ ~2S'l5t) \T\1) <¿.~ò l' Total Depth 1:(...,,,, -4......00 7514.54f1MD A'I'.\F #3 nil. KGSI'.~ Wp ~.!~ 6259.5OfITVD f¡~.J.'\.5( '1"\ /J 17anca"'l~ A.i;.": #31"1 . O,5US. -'-:",92 U" 703~.OO \MD ^~$IJ..';¡(} 'n}) 6::!~U.J7nn1) J¡.,',...·.51\ ..... .J.':;fI..J.~ n .....5()().(M) ."S()(),IIt) 4500 - ..".,,, I -Begin Dir @ 6.0000/lOflt: 5113.931t MD. 4963.891t TVD ~~C)t),()() 5400 - § \(" ~" II ~ (,) :,§ 6300 - Qj ~ rn I ·900 Scale: 1inch = 900ft Section Azimuth: 222.450° (True North) Vertical Section (SHL) DrillQuest 3.03.02.002 Vertical Origin: Horizor1al Origin: Measll"emer1 Units: North Relerence : Well: Horizontal Coordinates: Ref. Global Coordinates: 2469944.76 N, 348982.39 E Ref. Structure: 11.83 S, 15.06 W Ref. Geographical Coordinates: 60° 45' 28.6763" N, 150° 50' 39.7311" W RKB Elevation: 192.500 above Mean Sea Level North Reference: Units: T rue North Feet (US Survey) KGSF #3 ( Wp 2.0 ) Proposal Data RKB = 192.5' MSL SHL It True North Dogleg severity' Degrees per 100 teet (US SLrVey) Vertical Section AzimlAh: 222.450° Vertical Section DescriplioSHL Vertical Section Origin: 0.00 N.O.OO E Measured Depth 0.00 2350.00 2H56.2X 5113.'13 6'132.'!O 751~.5~ !net Azlm. Vertical Northlngs Eastlng5 Vertical Dogleg Depth SectIon Rate O.()(X) 0.000 0.00 0.00 II: 0.00 E O.(X) O.()(X) O,(XX) 2350.IX) O.()()N lUX) E (UX) O.()(X) 20.251 3'1..1.12 2x.15.X I 60XN 56.25 E -X8..12 ~.O( O 20.251 W.~2 ~%3.Hl) 671.87 N 552.71 E -X6.~.80 O.IXX) 88.'116 222..152 62~H 50 40.50 N 57.'12 W '1.21 6.000 XX.'16 222.452 625'1.50 3XX5X S ~50.43 W 5'1().7~ OIXX) Sperry-Sun Drilling Services Proposal Report for KGSF #3 ( Wp 2.0 ) Revised: 16 April, 2003 Kenai & Cook Inlet Alaska Measured Sub-Sea Vertical Local Coordinates Global Coordinates ogleg Vertical Depth Incl. Azim. Depth Depth Northings Eastings Northings Easting ate Section Comment (ft) (ft) (ft) (ft) (ft) (ft) ¿-f!\~ ~ó ft) OOft) 0.00 0.000 0.000 -192.50 0.00 0.00 N 0.00 E 2469944.76 N ~ 34§~82}9~ 0.00 SHL 80.00 0.000 0.000 -112.50 80.00 0.00 N 0.00 E 2469944.76 N 39E 0.000 0.00 13-3/8" Conductor ... Begin 12- 1/4" Hole: 80.00tt MD, 80.00tt TVD 100.00 0.000 0.000 -92.50 100.00 0.00 N 348982.39 E 0.000 0.00 200.00 0.000 0.000 7.50 200.00 0.00 N 348982.39 E 0.000 0.00 300.00 0.000 0.000 107.50 300.00 0.00 N 348982.39 E 0.000 0.00 .~=-/ 400.00 0.000 0.000 207.50 0.00 2469944.76 N 348982.39 E 0.000 0.00 500.00 0.000 0.000 307.50 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 600.00 0.000 0.000 407.50 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 700.00 0.000 0.000 507.50 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 800.00 0.000 0.000 607.50 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 900.00 0.000 0.000 707.50 O. N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1000.00 0.000 0.000 807.50 - OQ.O 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1100.00 0.000 0.000 907.60 ;·i''''lOD 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1200.00 0.000 0.000 stôôi:i€ó _120Qi-QO 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1300.00 0.000 o.OW ~~10~ ~ÓO 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1400.00 0.000 ~:.~ .c,~}~ ~:gg:gg 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1500.00 0.000 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1600.00 0.000 Q~~407.50 1600.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1700.00 0.000 ó,-gop 1507.50 1700.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1800.00 0.000 0.000 1607.50 1800.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 1900.00 0.000 0.000 1707.50 1900.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 2000.00 0.000 0.000 1807.50 2000.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 9-5/8" Casing pt ... Begin [ " Hole: 2000.00tt MD, 2000.~{ TVD 2100.00 0.000 0.000 1907.50 2100.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 2200.00 0.000 0.000 2007.50 2200.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 2300.00 0.000 0.000 2107.50 2300.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 2350.00 0.000 0.000 2157.50 2350.00 0.00 N 0.00 E 2469944.76 N 348982.39 E 0.000 0.00 Begin Dir @ 4.0000/100tt : 2350.00ft MD, 2350.00tt TVD 2400.00 2.000 39.442 2207.49 2399.99 0.67 N 0.55 E 2469945.43 N 348982.95 E 4.000 -0.87 2500.00 6.000 39.442 2307.23 2499.73 6.06 N 4.99 E 2469950.76 N 348987.45 E 4.000 -7.84 2600.00 10.000 39.442 2406.23 2598.73 16.81 N 13.82 E 2469961 .39 N 348996.43 E 4.000 -21 .73 2700.00 14.000 39.442 2504.03 2696.53 32.86 N 27.03 E 2469977.27 N 349009.84 E 4.000 -42.49 16 April, 2003 - 18:32 Page2of6 DrillQuest 3.03.02.002 Sperry-Sun Drilling Services Proposal Report for KGSF #3 ( Wp 2.0 ) Revised: 16 April, 2003 Kenai & Cook Inlet Alaska Measured Sub-Sea Vertical Local Coordinates Global Coordinates ogleg Vertical Depth Incl. Azim. Depth Depth Northings Eastings Northings Easting ate Section Comment (ft) (ft) (ft) (ft) (ft) (ft) ft) OOft) 2800.00 18.000 39.442 2600.13 2792.63 54.14 N 44.54 E 4.000 -70.01 2856.28 20.251 39.442 2653.31 2845.81 68.38 N 56.25 E 4.000 -88.42 End Dir, Start Sail @ 20.251° : 2856 .28ftM D ,2845.80ftTVD 2900.00 20.251 39.442 2694.32 2886.82 80.07 N 0.000 -103.54 3000.00 20.251 39.442 2788.14 2980.64 106.80 N 0.000 -138.1 0 3100.00 20.251 39.442 2881.96 3074.46 133.53 N 0.000 -172.67 ~ 3200.00 20.251 39.442 2975.78 2 103. 1 N 349116.28 E 0.000 -207.23 3300.00 20.251 39.442 3069.60 2470129.76 N 349138.61 E 0.000 -241 .80 3400.00 20.251 39.442 3163.41 2470156.20 N 349160.94 E 0.000 -276.37 3500.00 20.251 39.442 3257.23 2470182.65 N 349183.27 E 0.000 -310.93 3600.00 20.251 39.442 3351.05 2470209.10 N 349205.60 E 0.000 -345.50 3700.00 20.251 39.442 3444.87 241.79 E 2470235.54 N 349227.94 E 0.000 -380.06 3800.00 20.251 39.442 3538.69 263.78 E 2470261.99 N 349250.27 E 0.000 -414.63 3900.00 20.251 39.442 3632.51 285.77 E 2470288.43 N 349272.60 E 0.000 -449.20 4000.00 20.251 39.442 37~6.a2 307.76 E 2470314.88 N 349294.93 E 0.000 -483.76 4100.00 20.251 39.442 f:p2~=., 329.75 E 2470341 .33 N 349317.26 E 0.000 -518.33 ,.i2¥ . 4200.00 20.251 -~~:~ ~~~~. 427.57 N 351.74 E 2470367.77 N 349339.60 E 0.000 -552.89 4300.00 20.251 454.30 N 373.73 E 2470394.22 N 349361.93 E 0.000 -587.46 4400.00 20.251 ~AØ~' ~. 4fbf:c~b 481.03 N 395.72 E 2470420.67 N 349384.26 E 0.000 -622.03 4500.00 20.251 ~¡~~195.42 507.76 N 417.71 E 2470447.11 N 349406.59 E 0.000 -656.59 4600.00 20.251 39~ 4289.23 534.50 N 439.70 E 2470473.56 N 349428.92 E 0.000 -691.16 4700.00 20.251 39.442 4383.05 4575.55 561.23 N 461.69 E 2470500.00 N 349451 .26 E 0.000 -725.72 4800.00 20.251 39.442 4476.87 4669.37 587.96 N 483.68 E 2470526.45 N 349473.59 E 0.000 -760.29 4900.00 20.251 39.442 4570.69 4763.19 614.69 N 505.67 E 2470552.90 N 349495.92 E 0.000 -794.86 5000.00 20.251 39.442 4664.51 4857.01 64 1.42 N 527.66 E 2470579.34 N 349518.25 E 0.000 -829.42 '-" 5100.00 20.251 39.442 4758.33 4950.83 668.15 N 549.65 E 2470605.79 N 349540.58 E 0.000 -863.99 5113.93 20.251 39.442 4771.39 4963.89 671.87 N 552.71 E 2470609.47 N 349543.69 E 0.000 -868.80 Begin Dir @ 6.0000/100ft : 5113.93ft MD, 4963.89ft TVD 5200.00 15.097 38.342 4853.37 5045.87 692.18 N 569.14 E 2470629.57 N 349560.38 E 6.000 -894.88 5300.00 9.124 35.552 4951.11 5143.61 708.86 N 581.84 E 2470646.08 N 349573.30 E 6.000 -915.76 5400.00 3.250 22.632 5050.48 5242.98 717.94 N 587.55 E 2470655.09 N 349579.12 E 6.000 -926.31 5500.00 3.141 242.949 5150.42 5342.92 719.31 N 586.19 E 2470656.47 N 349577.79 E 6.000 -926.41 16 April, 2003 - 18:32 Page 3 of6 DrillQuest 3.03.02.002 Alaska Measured Sub-Sea Vertical Depth Incl. Azim. Depth Depth (ft) (ft) (ft) 5600.00 9.009 229.400 5249.82 5442.32 5700.00 14.982 226.553 5347.59 5540.09 5800.00 20.970 225.308 5442.67 5635.17 5900.00 26.963 224.598 5534.00 5726.50 6000.00 32.958 224.131 5620.60 5813.10 6100.00 38.955 223.794 5701 .51 5894.01 6200.00 44.953 223.535 5775.85 5968.35 6300.00 50.951 223.325 5842.79 6035.29 6400.00 56.949 223.148 5901.61 6094.11 6500.00 62.947 222.994 5951.67 6144.17 6600.00 68.946 222.855 5992.41 6700.00 74.945 222.727 6023.39 6800.00 80.944 222.606 6044.26 6900.00 86.942 222.490 6054.81 6932.90 88.916 222.452 60.56.QO ~ 88.916 i~./~, ç~ 6 . ,?t. 32.0 88.916 2~~5787 ~ 7100.00 88.916 222.452 6059.16 6251.66 7200.00 88.916 222.452 6061.05 6253.55 7300.00 88.916 222.452 6062.94 6255.44 7400.00 88.916 222.452 6064.83 6257.33 7500.00 88.916 222.452 6066.73 6259.23 7514.54 88.916 222.452 6067.00 6259.50 16 April, 2003 - 18:32 Sperry-Sun Drilling Services Proposal Report for KGSF #3 ( Wp 2.0 ) Revised: 16 April, 2003 Kenai & Cook Inlet Local Coordinates Global Coordinates ogleg Vertical Northings Eastings Northings Easting ate Section Comment (ft) (ft) (ft) ft) OOft) 712.96 N 34?-H69.pt~ 6.000 -916.06 698.97 N ~Œ~~ 6.000 -895.38 677.48 N 3~02.36 E 6.000 -864.58 648.72 N 6.000 -824.02 613.02 N 349467.01 E 6.000 -774.13 -c 509. >N 349425.74 E 6.000 -715.46 -> 2 462. 3 N 349378.99 E 6.000 -648.65 2470408.88 N 349327.28 E 6.000 -574.44 2470350.72 N 349271.18 E 6.000 -493.63 2470288.28 N 349211.29 E 6.000 -407.12 162.30 E 2470222.25 N 349148.27 E 6.000 -315.85 97.75 E 2470153.34 N 349082.83 E 6.000 -220.82 31.50 E 2470082.32 N 349015.66 E 6.000 -123.07 35.71 W 2470009.97 N 348947.51 E 6.000 -23.67 57.92 W 2469986.00 N 348925.00 E 6.000 9.21 End Dir, Start Sail @ 88.916° : 6932 .9OftM 0 J 6248. 50ftTVD [ Target - KGSF #3 T1 , Current Target 9.00 S 103.19W 2469937.09 N 348879.09 E 0.000 76.29 32.61 S 124.79W 2469913.76 N 348857.19 E 0.000 108.29 7" Casing Pt... Begin 6" Hole: 7032.00ft MD, 6250.00ft TVD 82.77 S 170.68 W 2469864.19 N 348810.66 E 0.000 176.27 156.54 S 238.16 W 2469791.29 N 348742.23 E 0.000 276.26 230.31 S 305.65 W 2469718.40 N 348673.80 E 0.000 376.24 304.09 S 373.13 W 2469645.50 N 348605.38 E 0.000 476.22 - 377.86 S 440.62 W 2469572.60 N 348536.95 E 0.000 576.20 388.58 S 450.43 W 2469562.00 N 348527.00 E 0.000 590.74 Total Depth : 7514.54ftM D,6259.50ftTVD Target - KGSF #3 T2, Current Target Page 4 of6 DrillQuest 3.03.02.002 ) ') Maximum Anticipated Surface Pressure Calculation & Verification of Casing Design Kenai Gas Storage Facility Well #3 Swanson River Field, Kenai Peninsula, Alaska Assumptions: 1. Based on data from offset and other field wells, the pore pressure gradient is predicted to be a 0.447 psilft gradient from surface to planned total depth at 6259' VO BRT. While over-pressured water flow sands are known to exist at deeper depths in Swanson River Field, there is rio data indicating over-pressured sands exist above +1-6500' VO in the /" vicinity of the KGSF #3 location. 2. Although the objective 62-5 Tyonek Sand was originally found to be normally pressured, it is known to be depleted to a 0.12 psilft (2.3 ppg E.M.W.) pore pressure gradient due to production in direct offset well SRU 212-27. Assuming . the objective reservoir is re-pressurized to a normal pressure (i.e. 0.447 psilft x 6259' = 2798 psi.) provides a logical/" worst case scenario for calculation of the drilling M.A.S.P.. 3. Once the 7" casing is cemented, only the 6" HZ hole remains to be drilled in the depleted reservoir. Since the 9 5/8" casing is weaker than the 7" casing, the maximum burst load case during drilling would be a full evac load case on the 95/8" surface casing while drilling the 8 1/2" hole through normally pressured formations to 6247' VO. The M.A.S.P. during drilling operations will be governed by the 9 5/8" shoe frac gradient. The drilling M.A.S.P. is calculated based on a full column of gas between the 9 5/8" shoe at 2000' VO and the surface. 4. The M.A.S.P. during production operations will be the maximum expected SIWHP of 3000 psi after a completed /' injection cycle. The maximum compressor discharge pressure is 3000 psi, therefore, the theoretical maximum SIWHP is 3000 psi. This pressure potentially could be transmitted to the 7" casing if a shallow leak developed in the 3 1/2" tubing after an injection cycle. The 7" casing is the primary containment vessel in the event of a shallow tubing leak and, therefore, must be designed to handle this load. Additionally, the 7" casing will be the primary containment vessel for the life of the well, whioch could be twenty years or more (i.e. twenty or more injectionlproduction cycles). Therefore, the triaxial stress level of the 7", in the event of a shallow tubing leak, is the primary concern from a casing design standpoint. Due to minimal corrosion observed in Swanson River Field, the 7" casing is expected to maintain adequate pressure integrity for the 20 year design life of the well. 5. It is not essential that the 9 5/8" surface casing be designed to handle this load, due to the low probability of having two leaks. However, the burst rating of the 9 5/8" casing is 5750 psi, so the 9 5/8" casing will serve as an effective secondary containment vessel throughout the well's life. M.A.S.P. Calculation During Drilling Assuming 62-5 Sand Normally Pressurized: Max. pore pressure at 1.0. = 6259 I VO x 0.447 2798 psi Note: Full Evacuation pressure at surface limited by 9 5/8" shoe frac pressure, as follows: Est. Frac pressure at 9 5/8" shoe 2000 ft. x 0.8 psi/ft = = 1600 psi M.A.S.P. durinq drillinq = 1600 psi - (.02 psilft x 2000 ft.) = 1560 Q§J // M.A.S.P. Calculation During Productionllnjection Cycles: Max. injection pressure = max. compressor discharge pressure = max. SIWHP = 3000 psi ') ) M.A.S.P. durinç¡ production/injection Cycles = 3000 ~ ,// 7" Casing Design Verification A. Burst Triaxial Stress Calculation ~ 7" Casing at Surface ~ M.A.S.P. During Productionllnjection Phase VMs = (1/(2°·5))*«(6¡-6a)2)+((6a-6r)2)+((6r-6¡)2))o.5 Where; 6a = «(Axial Load [lbs.])/(lT/4)(OD2 - 10ma/))) ± (Og*0*E)/137510) 6¡ = «P¡*IDma/)-(P o*002))/(002-IOma/) + (((p¡-p o)*(002)*(IOma/))/«(02)*((002)-(IOmax2)))) 6r = «P¡*IOma/)-(Po*002))/(002-IOma/) - «(p¡-Po)*(002)*(IOmax2))/«(D2)*«002)-(IOmax2)))) Nomenclature: VMs = Von Misies equivalent triaxial stress, psi 6a = Axial stress, psi (due to load) 6¡ = Transverse (hoop) stress, psi 6r = Radial stress, psi 00 = Outside Diameter of pipe, inches 10max = Maximum inside diameter of pipe, inches (usually 00-1.75 w.t.) D = Diameter of interest, inches (worst case = 10max in this case) E = Modulus of elasticity (30 x 106 psi) Og = Dogleg, °/100' (assumed 0°/100' at surface) Pi = Internal Pressure, psi Po = External Pressure, psi Solution: 6a = «Axial Load [lbs.])/((lT/4)(002 -IOma/))) ± ((Og*0*E)/137510) 6a = «47000)/((lT/4)((72)-(6.2862)))) ± ((0*6.286*30x106)/137510) 6a = 6,308.53 psi 6¡ = «P¡*IOma/)-(Po*002))/(002-IOma/) + (((PrPo)*(002)*(IOma/))/((02)*((002)-(IOma/))) 6¡ = «3000*6.2862)-(0*72))/(72-6.2862) + (((3000-0)*(72)*(6.2862))/((6.2862)*((72)-(6.2862)))) 6¡ = 27,992.38 psi 6r = «P¡*IOmax 2)_(p 0 *002))/(002-IOmax 2) - «(p¡_p o)*(002)*(IOmax 2))/(02)*«002)-(IOmax 2)))) 6r = «3000*6.2862)-(0*72))/(72-6.2862) - (((3000-0)*(72)*(6.2862))/((6.2862)*((72)-(6.2862)))) 6r = -3,000.00 psi VMs = (1/(2°·5))*( «6¡-6a)2)+( (6a-6r)2)+( (6r_6¡)2))0.5 VMs = (1/(2°.5))*«(27992.38-6308.53)2)+((6308.53-( -3000) )2)+( ( -3000)-27992.38)2) )0.5 VMs = 27,544.20 psi / The calculated maximum theoretical VMe triaxial stress of approximately 27,544 psi, which occurs in the Production Tubing Leak Load Case, compares favorably with the planned 7" L-80 material, which has a yield strength of 80,000 psi. The M.A.S.P. of 3000 psi compares favorably to the burst rating of 8,160 psi. Jhe joint strength of 746 kips compares favorably to the anticipated slip load of 145 kips. /' As an addiitonal back-up, the 9 5/8" 40 ppf N-80 surface casing has a burst rating of 5750 psi and a joint strength of 979 kips. All wellhead components, with the exception of the 13 3/8" starter head, will be rated to 5000 psi working pressure. 1000 .c 2000 ... Q. Q) ~ 3000 fa U 1: ~ 4000 Q) ::s L.. t- 5000 6000 7000 8 Kenai Gas Storage Facility #3 o Predicted Fracture Gradient '''''''''''''''''''''''''''''''''''Mud Weight 8 1/2 in. Hole 10 12 Mud 14 t (PPG) 16 18 ) ') Swanson River Unit KGSF #3 7"" S HOE DESIGN SUMNlARY & SKETCH UNOCALe 9-5/8" shoe 1,985ft BML~ (2,000 ft TVD) \ / \ I \ I \ 8-1/2" Hole / \ / \ / \ I \ I \ I - mdb/01decOO METHOD 2: A RT - MSL = 15.5 ft . .. WD = 0 ft with 0.447 PSI/FT Gradient ... DESIGN DOWN: MW = 9.3 _ G Pform 9.3 PG EMW KT 23 B S at 0 PPG FG::, ; PSI/FT Gas Gradient = 0.02 PSI/FT Drill Pipe = 4 INCH 9-5/8" shoe ... The shallowest 7...· shoe depth = #DIV/O! #DIV/O! #DIV/O! #DIV/O! A \ / \ / \ .. I \ I \ / \ 6 "Hole / \ / \ / \ / \ TD = - 016 ft BML or 000 ft TVD / METHOD 1: · DESIGN UP: MW = PPG Pform = 0 PPG EMW KT = BBLS at PPG - FG = PSI/FT Gas Gradient = PSI/FT Drill Pipe = INCH UNOCAL Alaska ,) 1 Leak Off Test (LO I) Procedure Revised: 04-04-03 by JFB 1. Drill out shoe track, clean out rathole, & make 50' of new hole. 2. Circulate bottoms up on shallow shoes. Note on report if 50' of new hole was sand or shale. 3. Have mud weight even in & out on all LOT's. Pump the same mud that is being circulated through the kill & choke lines. 4. Install calibrated gauges & recorders on standpipe & choke manifold. Gauges should be as low pressure as possible, i.e., 300 psi for first shoe. 5. Rig up cement line to the drill pipe. 6. Pressure test cement line from the cement unit to the drill pipe valve to 250 psi low / 3000 psi high. 6. Close pipe rams. 7. Break circulation through choke manifold. Close choke. 8. Pump mud down the drill pipe at % bpm. 9. Record the drillpipe pressure & the annulus pressure every % bbl. 10. Stop pumping after 1 bbl has been pumped at injection pressure (ie, 4 data points) 10. Record instant shut-in pressures, pressures after 10 seconds, & pressures every one minute for three minutes. 11. Bleed off annulus & open rams. 11. Plot drill pipe pressure & casing pressure vs. bbls pumped using the latest version of the Unocal LOT program. Note: The pressure to be used for calculating the LOT is the 10 second shut-in pressure on the casing gauge. Drill ahead if LOT is acceptable, squeeze shoe if it is not. LOT Procedure.doc Page 1 of 1 04/17/03--3:40 PM 0 1000 2000 3000 4000 5000 6000 ø Q u. .5 7000 s::. - a. (þ 0 "tI f 8000 :::I If¡ !!I Q) :¡¡¡ 9000 10000 11000 12000 13000 14000 15000 8.0 9.0 10.0 12.0 13.0 14.0 Mud Weight in PPG ) ') Cement Volume Calculation Kenai Gas Storage Facility Well #1 Swanson River Unit, Kenai Peninsula, Alaska Assumptions: 1. The 9 5/8" surface casing must be cemented to surface, to provide maximum; (a.) structural stability, (b.) long term well control security, and (c.) protection of fresh water sands. Since water- based spud mud be utilized to drill this section, the calculated cement volume will include 40% excess cement in order to ensure a moderate amount of cement returns to surface. 2. The 7" intermediate/production casing is viewed as the primary containment vessel in the event of a 3 1/2" tubing leak. Provided returns are not lost durin~e primary cement job, it is desired to circulate cement up to the 9 5/8" surface casing shoe. This will tend to provide long term reliability, over many injection/production cycles, due to minimizing the effects of external corrosion, minimizing...peF·odic casing shifting or movement, and by providing additional burst resistance in th,ßcement d interval. Since OBM will be used to drill this interval, the calculation assumes onJ~/20% e ss cement is required. However, due to the unknown frac gradient in the depleted 62~' tive reservoir, where the T' shoe will be landed, it is possible that returns will be lost before the plug is bumped. 7 95/8" Surface Casing: '1 q ~.~.: Openhole volume = (12.25)^2-(9.625)^2)'3.1417/4/144/5.~"i~94;; 156 Total slurry volume = 156 bbls l. :__'" Cement Type: Class 'H' w/ 3% gel extender mixed at 13.0 P'P9 (w.o. Dowell design) Yield = 2.08 ft3/sk number of sacks = 156 x 5.61/ 2.08 = 422 bbls sx /' 7" Intermediate/Production Casing: Note: Assume 500' of class 'G' tail slurry mixed @ 15.8 ppg & 4433' of gel extended class 'G' lead slurry mixed at 13.0 ppg to reach 9 5/8" casing shoe.- Open hole volume = «(8.5)^2-(7)^2)*3.1417/4/144/5.61'(693~~1.2 = 134 bbls Total slurry volume = 134 bbls f71 Lead Cement Type: Class 'H' mixed at 15.8 ppg (w.o. Dowell design) Yield = 2.08 fe/sk number of sacks = 120 x 5.61/ 2.08 = 324 sx Tail Cement Type: Class 'H' + gel extender at 13 ppg (w.o. Dowell design) Yield = 1.2 fe/sk number of sacks = 14 x 5.61/ 1.2 = 63 sx ) Cementing Contingencies: 1. Emergency slips for 3 1/2" tubing and 7" intermediate casing will be on location in case either string sticks with the hanger not landed, i.e. while reciprocating or while running in the hole. 2. If returns are lost during the 9 5/8" surface casing cement job, or jf cement is not circulated to surface, it will be necessary to wait until the cement has setup and then bullhead additional cement down the 9 5/8" x 13 3/8" annulus. This would be necessary to obtain a competent pressure seal below the 13 3/8" starter head and to ensure mechanical stability at surface (i.e. for future HWOU operations, etc.). 3. No contingency is required in the event returns are lost during the 7" intermediate/ production casing cement job, provided an adequate volume of cement is circulated to eliminate the risk of behind-pipe communication between the objective formation and overlying formations. '-' N ~ + -......-~£ GRID N:2469826.993 GRID E:349190.534 LATITUDE: 60°45'27.543" LONGITUDE: 150°50'35.512" !=LEVATION: 173.24' 212-27 GRID N:2469840.115 GRID E:349075.753 LATITUDE: 60°45'27.658" LONGITUDE: 150°50'37.825" !=LEVATION: 174.49' 50 12-27 GRID N:2469974.6Hi GRID E:348971.896 LATITUDE: 60°45'28.969" LONGITUDE: 150°50'39.950" ASP ZONE 4 NAD27 1724.00' FNL 4040.37' FWL SECTION 27, T8N, 9W SEWARD MERIDIAN, AK ELEVATION = 173.3~ ...& -..-.·IIftI.8"-eIFililillU" .......AWII =-c==-~ ..._-. ~--- - SWN#StM RNER PNJ 212-27 NNJORS RIG 129 -- al-- ~- -.: I'a III 1M #/4itIJ IL III. I;CFI - - .... "P ') 11 ", SM, Spacer Spool ...............;;;,..................~................................. 12" 38.02" 96" 45.98" " ') i ·...........·t·.............··........·..··..·.....·.................·....·..·.........··................. Ground Level 13-3/8" .... ~~ ...... "...... 9-5/8" 7" ········r······················· \ I ...............~.............. - I r: ----:1 I - 11"5M =:) C Cameron I I MBS :: Wellhead I I I I I I , I I I " 1- ........:.............................................-.¡ : ~ I I I I I I I I I I : : I II I I I I I I I I I I I ,___I 3-1/2" 24" 13-5/8" Landing Ring 8.5' UNOCALel Starter Head & Cellar KGSF #3 Date: 04-17-03 ,. ::¡:rm ANNfJUR NORI.W.LY \ 2. VAl.~ NORJIN.lY CLOSED. ' I '-3ŒU'S/ I 1 ;IN.E I Œ£H _._.~ II '{fflB GIJ a.ŒE ì r- - ~ ~ 5000PSI -.. ~ 'I NINIJ/.JrR r . .J :-.~ ACaII.tA7æ I . I / lir.··J .-..- I o-...._.~.i !_- {j'-! J 5/8" -5IJOCI'S/ flAI<;fS Î 1^D DroÐIIER LN: DMRÆR SPOOl.. \ I I ~ I I ..... {~L .)~~ ~~~)(. . I!'~ . ~. I ~ ~ Do Do 4T1\. I~ It." II> ~ _¡ )( t. - - . r----1 ~J 1æI(~']~' .' ~ DD DD ...M¡ í ~ :_ ~ - I - - - -<: y -0 :: ~ · · I · D _ ~~ ~ ~~~ __ D. t=~ T A A y~ .. I". · . I ",. ~ · r ~,¿'i*m Y ~ ^- . = Dr ............... ~ ~~r=_~ D! ~ fÆ<:~~~ B-=-= -= Y -~ B FABRI-VAl.~ 12" FIG . J6 KNfFf VAl.~ &Uê'==rl="'Œ- AIiWNn f" _.......-=r=c:.=. (# u_~-~ :;nc"=-..... -- - ~-.::..- IIII.E RIG 129 DiG[ 1fT? -- _ lit 0f"DD Dfr£RTfR RIG 129 -.: 7lJtI1IfED -. IIf l- IIf Jj2S,IIIJ r- 110. I~~, 172" I MS" 41.5" 33" + from kìll'ìnl +1 24" +- Ground level 11" 5M studded Cameron MBS wellhead .. 7' 10" 19.5" I".. 38" 46" Rig Mat 1 96" .. TO GAS BUSTER h P I INLET ~=~y ,.-... ~ BY-PASS LINE ~ PANIC LINE -' -~ Manifold consists of 3 1/8" 5m flanged valves & one 5m super choke. ~ ~ê~~~~~~Œ -Hø6onAWII =-c"= ~J: ..._-~ ~-..2Q¡ - fiJ<; 129 mu: _II< r&l æ:m: RKi 129 CHffff ¡.¡,w,'fGì.D aE:oS> !I< )f'f'8tMD U1 ~ .-.1iC. .J/l1/t~J -...: :cii:tt. ¡!at {>F ~I NS ') ) Interval Summary UNOCAL KGSF #3 - 60' - 2000' MD 9 5/8" Casing 12 1/4" Hole Drilling Fluid System Gel - Gelex Key Products M-I Gel / M-I Bar / Soda Ash / Caustic Soda / Gelex / DD / Sapp / Drill XT Solids Control Flow Line Cleaners / Centrifuge / Desander / Desilter Potential Problems Hole Cleaning / Gravel/Gas Kick / Lost Circulation / Bit Balling Interval Drilling Fluid Properties Depth Mud Plastic Yield Gel API Total Interval Weight Viscosity Point Strength Fluid Loss DrilledSol- ids (ft) (ppg) (cp.) (lb./100ft2) (lb./100ft2) (ml/30min) (%) 400 9.4 5-10 20 - 30 N/C < 20 3 or less 1000 9.4 5-10 20 - 30 8/12 < 10 5 or less 1000 9.4 / 5-10 20 - 30 8/12 <8 6 or less · Build spud system with pre-hydrated bentonite and Gelex in fresh water. · Utilize all solids control equipment. · Raise viscosity if gravel sections are encountered. · Pump sweeps if required. · Add DD (drilling detergent) and/or Sapp for possible bit balling. · Potential Problems: Running gravel, bit balling, shallow gas, and swelling clay · Estimated volume usage - 900 barrels. Note: Mud Weights of 10.0 ppg may be required because of potential shallow gas. M-I. L.L.C. 721 West First Avenue Anchorage, Alaska 9950 I (907) 274-5564 (907)279-6729 Fax ) ') Interval Summary UNOCAL KGSF #3 "'''') ,~,j;';' 2000' -~J~J\ßD Drilling-..J:h1Ïd System r9 Casing 8 1/2'''' Hole Versa- Pro Oil Mud Key Products Mapco 200/ Versawet / Versacoat / Versa HRP / VG-69 / Ver- samod / Lime / Calcium Chloride / MI Bar / Ventrol 401 Solids Control Shale Shakers / Desilter / Centrifuge Potential Problems Coal sloughing, hole cleaning, drill solids buildup Interval Drilling Fluid Properties Depth I nterva I (ft) 2000'-7032' Mud Plastic Weight Viscosity (ppg) ¿/ (cp.) 9.0-9.3 . 20-25 Yield HTH P Point Fluid Loss (lb/100ft2) (ml/30min) 12 - 20 4 - 5 cc's o/w Ratio 80/20 Gels (lb/100ft2) 15 - 30 · Displace cement in 9 5/8" casing to oil based mud. · Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. · Run centrifuge as needed to reduce solids buildup. · Pump weighted sweeps to aid in hole cleaning. · If sloughing coal becomes a problem, add 2 - 4 ppb of Ventrol 401 to mud system or spot a concentrated pill of 20 - 25 ppb Ventrol 401 across coal zone prior to trips. For severe coal sloughing consider raising mud weight. · Run 7 5/8" casing. · Estimated volume usage is 1000 barrels. M-I. L.L.C 72] West First Avenue Anchorage, Alaska 9950] (907) 274-5564 (907) 279-6729 Fax -, ) Interval Summary UNOCAL KGSF #3 7032'-7532' MD 79CaSing ci?HOle Drilling Fluid Systerii-'''Versa- Pro Oil Mud Key Products Mapco 200 / Versawet / Versacoat / Versa HRP / VG-69 / Ver- samod / Lime / Calcium Chloride / MI Bar / Ventrol 401 Solids Control Shale Shakers / Desilter / Centrifuge Potential Problems Coal sloughing, hole cleaning, drill solids buildup Interval Drilling Fluid Properties Depth Interval (ft) 7032'-7532' Mud Plastic Weight Viscosity (ppg) /' (cp.) 9.0-9.6· 20 - 25 Yield HTHP Point Fluid Loss (lb/100ft2) (ml/30min) 12-20 4-5cc's OIW Ratio 80/20 Gels (lb/100ft2) 15 - 30 · Drill out 7 5/8" casing. · Drill ahead, maintain low shear rate values with VG-69, Versamod, and Versa HRP. · Run centrifuge as needed to reduce solids buildup. · Pump weighted sweeps to aid in hole cleaning. · If sloughing coal becomes a problem, add 2 - 4 ppb of Ventrol 401 to mud system or spot a concentrated pill of 20 - 25 ppb V entrol40 1 across coal zone prior to trips. For severe coal sloughing consider raising mud weight. · Run 5 1/2" casing. · Estimated volume usage is 450 barrels. M-L LLC. 721 West First Avenue Anchorage, Alaska 9950 I (907) 274-5564 (907) 279-6729 Fax ') LCM Summary UNOCAL KGSF #3 2000'-7532' MD OBM Hole Sections Lost Circulation Recommended LCM Pill Formulas Problems Key Products Drilling Fluid / OM Seal / SafeCarb Fine, Medium, Coarse / Versa- HRP Lost Circulation Pill (Slight Losses) Volume Mix II SafeCarb SafeCarb Versa HRP of Mud Fine Medium (barrels) (ppb) (ppb) (ppb) (ppb) 30 10 10 10 1/4 Lost Circulation Pill (Moderate Losses) Volume Mix II SafeCarb SafeCarb Versa HRP of Mud Medium Coarse (barrels) (ppb) (ppb) (ppb) (ppb) 40 15 15 10 1/2 Lost Circulation Pill (Severe Losses) Volume Mix II SafeCarb SafeCarb Versa HRP of Mud Medium Coarse Polymer (barrels) (ppb) (ppb) (ppb) (ppb) 50 15 20 30 1 . Versa HRP should be added last, only after all lost circulation material has been mixed. . Ifpossible, spot pill across theft zone. Apply moderate pressure (50 - 100 psi) to squeeze pill into thief zone. M-I. LLC. 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax M-L LLe 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax . Disposal wiB be an issue. Mud and cuttings should meet all disposal requirements and limitations. OBM cut- tings wiB require special handling. Keep driB cuttings as dry as possible. .. Run as fine a mesh screens on shakers, mud cleaner, and cen- trifuge if available to reduce the build up of driB solids in the mud. . Maintain mud weights as per program. Increase rheology as required by hole conditions. . Maintain adequate supplies of LCM on location. LCM for- mulations are not designed for G&1. Do not exceed 40 ppb or coarse material without confirmation from MWD and Mud Motor representatives. .. MI Project Engineer and Manager will coordinate between the Unocal of- fice, rig, warehouse, and the M-I field engineers. · Well progress will be monitored to look for any changes which will improve the ciency of the operation or avert trouble.. Project Team Work Cellular Craig Bieber District Manager 907 274-5051 907229-1196 Deen Bryan Tech Service 907-274-5003 907-223-1634 Dewees Project Engineer 907-274-5533 907-230-6653 Gus Wik Warehouse Manager 907776-8680 907 252-4218 M-L LLC 721 West First Avenue Anchorage, Alaska 99501 (907) 274-5564 (907) 279-6729 Fax ') Gas Storage Project Kenai Gas Storage Facility #3 Drill & Complete AFE ) t UNOCAL8 UNOCAL ALASKA WELL WORK HAZARD ANALYSIS SCREENING WELL: Kenai Gas Storage Facility #3 AFE: 160443 PROJECT MANAGER: JFB POTENTIAL HAZARD INDICATOR 1. Is there potential for abnonnal pressure? 2. Is there potential for loss circulation? 3. Is there potential for shallow gas? 4. Is there potential for hydrogen sulfide? 5. Is there potential for NORM exposure exceeding 50 microroentgens per hour? 6. Is use of equipment. Chemical or procedure new to facility anticipated? 7. Are procedures planned that could place abnonnal stress on well components? 8. Are there proximity concerns? 9. Do procedures have potential to physically impact Process Safety Management of facility? 10. Win P & I D's need revision? 11. Win any variance be required? 12. Win any concurrent projects be in progress? 13. Do any other conditions present a hazard to life or property? YES NO X "..--. X r X .---- X X X X X X X X X X Yes answers require analysis or mitigation prior to commencement of that phase of the project. SUMMARY OF ANALYSIS OR REMEDIATION 1. Swanson River Field has a history which includes several incidents involving crossflow from deeper to r' shallower sands. No shallow penetrations have occurred in the immediate vicinity of the KGSF #3 location since 1961. There is a report from 1959 in the SRU 14-27 wellfi1e which indicates crossflow of Hemlock oil into shallow sands between 2800' & 3500' was confinned. The entire interval from surface to the planned TD of KG SF #3 was drilled in well SRU 212-27 (with 11.75 ppg mud) in late 1960, one year after the crossflow incident occurred (i.e. after the crossflow had been stopped). Sands containing Hemlock oil were production tested, while drilling well SRU 212-27 (on the same pad) in late-1961. Some oil was produced in short tenn DSTs, in sands between 2880' and 3500', although no abnonnal pressures were recorded and the production rates quickly decreased as water cut increased. The volume of oil which cross-flowed has been estimated to be relatively minor, and any remaining oil is likely to have migrated up-structure. The use of heavy muds was routine at that time, and no pressure kicks occurred while drilling with 11.75 ppg mud. A geologic analysis of potential shallow haz~ was perfonned in March 2003. It is considered highly likely that no overpressured intervals exist today, especially above 2000', due to the continuous blanket nature of the shallow sands, as a result of this particular crossflow incident or any other crossflow incident (known or unknown) elsewhere in the field. In addition to this known crossflow incident in 1959, the potential for shallow over-pressured sands also exists as a result oL.(unknown) leaks fiò):n SRU wells located on other pads, or due to disposal water injection approximat~{y 1 to 1.5 miles to SW. Produced water disposal intervals are significantly deeper than the 2000' sukace casmg-sh6e depth, so the risk of encountering a KGSF #3 HazAn.doc Created on 3/19/2003 2: 15 PM UNOCALe } Gas Storage Project Kenai Gas Storage Facility #3 Drill & Complete A-FE /' charged sand while drilling with a diverter is viewed as extremely low or nonexistent Basic risk mitigation techniques will be employed while drilling through the diverter, including use of a higher than required spud mud weight (+/-9.5 ppg) and pumping out of the hole rather than risk swabbing with a straight pull. The risk of encountering abnonnal pressure below 2000', after setting surface casing and testing BOPE, is potentially higher. While this could cause an operational problem and/or delay in reaching the planned total depth (i.e. to circulate out kicks and/or increase mud weight), this would not result in an unsafe situation or in an environmental incident. The casing & BOPE program, which includes surface casing string at 2000', is designed to protect the crew and the environment from any conceivable kick below 2000'. ,.,....- " 2. There is no evidence that lost returns will be a problem at this location. Just in case a weak fonnation is encountered, every effort will be made to minimize the risk of lost returns. Virtual Hydraulics software will be used to optimize mud rheology (i.e. to maximize hole cleaning & minimize ECD). CemCade will be used to optimize the primary cement job design to miminimize the risk of lost returns and maximize the probability of achieving the required and/or desired cementing objectives. 3. Multiple wells have been drilled on this same pad without encountering commercial quantities or potentially dangerous levels of shallow gas. The Shallow Hazard Analysis perfonned in March 2003 concluded that the shallow sands are continuous blanket sands and no shallow trap(s) exist. There are no known incidents of problems with shallow gas above 2000' in Swanson River Unit, and there are no known incidents involving gas crossflow or underground gas blowouts in the vicinity of the KG SF #3 surface location. However, gas cut mud due to gas bleeding from shallow coal seams is a nonnal occurrence in Swanson River Field and throughout the Cook Inlet Basin. While a concern, coal gas has nonnally proven to be controllable with simple mitigation techniques ( discussed above). KGSF #3 HazAn.doc Created on 3/19/2003 2:] 5 PM UNOCALe ) Gas Storage Project Kenai Gas Storage Facility #3 Drill & Complete AFE ENVIRONMENTAL PROJECT CHECKLIST Project Name Kenai Gas Storage Facility #3 Date March 14,2003 Issue Yes No Comments Does project include discharges into Cook X Inlet? Does project involve sending waste to an X N/ A - all class II non-toxic drilling waste will be onshore or facility based production stored in an approved lined pit in Swanson River wastewater treatment system? Unit. If the project involves sending fluids to X production wastewater treatment system has the facility personnel been notified of the proposed commingling of fluids? If the project involves sending fluids to a X production wastewater treatment system has an evaluation been conducted to detennine if the fluids may cause an upset to the treatment system? Does the project involve bypassing any X portion of a treatment system? Is MI Drilling perfonning required X N/ A - Cuttings and waste liquids will not be monitoring of drilling or workover discharged. All hauled loads of waste fluids discharges? and/or cuttings will be documented and reported as required. IfMI Drilling is not monitoring drilling or N/A workover discharges, has the project Foreman been infonned of the discharge requirements? I fa workover is being done has the workover X NPDES log been provided to the project Foreman? Is any equipment with emissions being added X N/ A - Only temporary drilling & pumping to the facility during the project? equipment wi11 be utilized Is any equipment with emissions being X removed during this project. Is any equipment with emissions being X replaced during this project? Wi11 flare volumes increase by any amount X during this project (well testing, spikes, etc.)? Wi11 any equipment be fueled by an alternate X fuel during this project? Wi11 any equipment with engine hour X limitations be utilized? I f so, estimate hours needed. Are liners being used in secondary X Where required. containment for tanks and drums? Are contractors aware of spill notification X and report procedure? Are safeguards in place for prevention of X spil1s (e.g. shut off systems, overflow alanns, etc. )? KGSF #3 HazAn.doc Created on 3/19/2003 2: 15 PM ) ) List of Attachments 1. Permit to Drill (form 10-401) 2. Location Plat (as built Pad Diagram) 3. Gas Storage Facility Map (includes well trajectory) 4. Surface Use Program 5. Summarized Drilling Procedure 6. Predicted Days vs. Depth Curve 7. Anticipated Formation Tops 8. Logging Program 9. Proposed Wellbore Schematic 10. Proposed Well Trajectory 11. M.A. S.P. Calculation & Casing Design Verification 12. Mud Weight vs. Predicted Fracture Gradient 13. Kick Tolerance Output 14. Leak Off Test Procedure 15. Offset Mud Weights 16. Cement Volume Calculations 17. Rig Layout Diagram 18. Cellar & Starter Head Spacing Diagram 19. Diverter Diagram 20. BOP Stack Diagram 21. Choke Manifold Diagram 22. Preliminary Mud Program 23. Well Work Hazard Analysis Screening 24. Environmental Checklist RECEIVED APR 2 1 iDOl Alaska Oil & Gas Cons. Commission Anchorage FOR INQUIRIES CONTACT LOCATION WHERE INVOICES WERE SUBMITTED VEN{)()R'NO, DATE CHECK NO. . 1031548 21-APR-03 2006847 DATE INVOICE/CREDIT MEMO NO. VOUCHERNO. 17-APR-03 DRILLPERMITKGSF3 04033001304 100.00 100.00 -' FORM 4·2B181 (REV. 11-95) PRINTED IN U.S.A. DETACH STUB BEFORE DEPOSITING CHECK 100.00 100.00 CITIBANK DELAWARE A Subsidiary of Citicorp ONE PENN'S WAY NEW CASTLE, DE 19720 62-20 311 Union Oil Company of California Accounts Payable Field Disbursing 2006847 UNOCALe Pay One Hundred Dollars And 00 Cents************************************************ Date 21-APR-03 Check Amount **********100.00 To the order of STATE OF ALASKA ALASKA OIL & GAS CONSERVATION COMMISSION 333 WEST 7TH AVENUE SUITE 100 ANCHORAGE~ AK 99501 United States III 200 (;8 ~ 7111 .:03. .00 20 g.: :;:~m,~ 3 g . .8. 3 7111 ) ) TRANSMIT AL LETTER CHECK LIST CIRCLE APPROPRIATE LETTER/PARAGRAPHS TO BE INCLUDED IN TRANSMITTAL LETTER WELL NAME PTD# CHECK WHAT APPLIES ADD-ONS (OPTIONS) MULTI LATERAL (H API number last two (2) digits are between 60-69) "CLUE" The permit is for a new wellbore segment of existing well Permit No, API No. Production should continue to be reported as a function' of the original API number stated above. HOLE In accordance with 20 AAC 25.005(1), all records, data and logs acquired for the pilot hole must be clearly differentiated in both name (name on permit plus PH) and API number (50 70/80) from records, data and logs acquired for well (name on permit). PILOT (PH) SPACING EXCEPTION DRY DITCH SAMPLE Rev: 07/1 0/02 C\jody\templates The permit is approved subject to full compliance with 20 AAC 25.055. Approval to perforate and produce is contingent upon issuance of a conservation order approving a spacing exception. (Companv Name) assumes the liability of any protest to the spacing exception that may occur. All dry ditch sample sets submitted to the Commission must be in no greater than 30' sample intervals from below the permafrost or from where samples are first caught and 10' sample intervals through target zones. ~~~~E ~ "\ 1 f 1,~1~~~~ "\ ~ FRANK H. MURKOWSK/, GOVERNOR AIßA~1iA. OIL Alft) GAS CONSERVATION COMMISSION 333 W. 7fH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 April 14,2003 Kevin A. Tabler Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Re: Application for approval to drill KGSF #3 Dear Mr. Tabler: Pursuant to 20 MC 25.252 (a), the Alaska Oil and Gas Conservation Commis- sion ("AOGCC" or "Commission") on June 5, 2002 issued Storage Injection Or- der No.3, authorizing Union Oil Company of California ("Unocal1 to conduct underground storage of hydrocarbons by injection into the Tyonek Formation via the proposed Swanson River Unit ("SRU") KGSF #2 well. As a result of me- chanical difficulties in completing KGSF #2, Unocal subsequently requested Commission approval to drill and operate KGSF #3, a grass roots gas storage well with a horizontal completion in the Tyonek, in relatively close proximity to KGSF #2. Per 20 MC 25.252 (g), AOGCC may, upon application, approve modifications of existing or pending disposal or storage operations under 20 MC 25.507. The latter regulation requires a submission to the Commission with an Application for Sundry Approvals (Form 10-403), when an altemate well is to be utilized for storage injection. AOGCC publicly noticed Unocal's intent to drill and operate KGSF #3 on April 11, 2003. Please submit to the Commission an Application for Permit to Drill (Form 10-401) for well KGSF #3. If KGSF #3 injection performance is satisfac- tory, then per 20 MC 25.507, please submit a Form 10-403 modifying Storage Injection Order No.3 to authorize storage injection in KGSF #3. The Commis- sion may at that time require abandonment or operations shutdown of KGSF #2. Please be advised that AOGCC is not hereby authorizing expansion of Stor- age Injection Order No.3 to allow more than one operating well. ~:ou fO~/:f~O~ to tlús matter, safah ~ Daniel T. amount, Jr. Chair Commissioner ~~~ Randy iuedriCh Commissioner STAlE OF ALASKA ADVERTISING ORDER ~ . ~ \ NOTICE TO PUBLISHER ) INVO,,~_ ,JUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER \¡v" ~ERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. AO-02314042 F AOGCC R 333 W 7th Ave, Ste 100 o Anchorage, AK. 99501 M AGENCY CONTACT Jodv Colombie PHONE DATE OF A.O. April 1 0, 2003 PCN ¿ Anchorage Daily News POBox 149001 Anchorage, AK. 99514 (907) 793-1?11 DATES ADVERTISEMENT REQUIRED: April 11 , 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Type of Advertisement X Legal o Display Account #STOF0330 Advertisement to be published was e-mailed o Classified DOther (Specify) SEE ATTACHED PUBLIC HEARING REF TYPE 1 VEN 2 ARD 3 4 FIN AMOUNT AOGCC, 333 W. 7th Ave., Suite 100 .... Anchora~e, AK 99501 NUMBER AMOUNT DATE TOTAL OF PAGE 1 OF ALL PAGES$ 2 PAGES COMMENTS 02910 SY 03 CC PGM LC ACCT FY NMR DIST ua 02140100 73540 2 3 4 REQUISITIONED BY: ~ .:> l/ ì (1£\JJ; , ,). ~ -.. D'~;p;)L· ,..,/ 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM r- I , ) ~ ' ' , Ancuorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 PRICE OTHER OTHER OTHER OTHER OTHER GRAND AD# DATE PO ACCOUNT PER DAY CHARGES CHARGES #2 CHARGES #3 CHARGES #4 CHARGES #5 TOTAL 766241 04/11/2003 02314042 STOF0330 $149.46 $149.46 $0.00 $0.00 $0.00 $0.00 $0.00 $149.46 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage 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 aforesaid 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 the above dates and that such newspaper was regularly distributed 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. Si~ed /iw~(J¡ .4 iwj Subscribed and ~ to me befor~ this date: ø~·~ Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES: ~-I(Lu: /2 \\\(!t(~r. ( \\ ..,"\E 8 AI'"....: ~\.\o~~ · · · :"~ .., '"' . ---' .~ " ~ ~'~OTA,,"'~:~ ~ . ~ --- ,.. =. "" . - "" . 1:1.. '- ~ : --"&LtC : ::: ;~'" --- J.·l~ ~ · ~OF ~ ',Q~:\' ~ ..... '.~"v-s. /./.1 !'.åeI JI"" ,'\ ))llJ)Jn)\' Notice of ,., Public ,Heating ,', . ,;.,' ,"".:"",, " ", ',," , I.' I I , "'.'," STATE QFALASKA'> .... ,,' :Alask~~iI, andG.qsCon'servation, COj'rissioni , ' , ' I ;.!.~',' 'J.'. ' Re'·' the OD~'nclüt¡on 6f"Uhlon ,j'I"'r COniP'~'~'·P'~f C'cillo. lorl'1;O I UnOCol I fo~ 01'1 o~aer oulnon.tlnlil Tn.. un- aerg~Oul'1d ..toroge 01 ntarocorDolI'I~·.bY Inlo:-crlol'1 ,1',1(\ In.. 1'.'01'1(;01( Forrnotlul'1 ,1'1 crc"poil.~d \'1/",,11 :)\I\Ion- ~Or'l Rh'",,~ unit ¡(C,SF If~."r 'j.'i ." . ", " . I,' 'I,', ",," '",,1, ,,,1,<,, '.. .'" ,", . '/ I. ,,.-,,,' Ut1lon'OIlIComporhbfCcllfornia (" l)l1ocal','>.bY lètte~clQted.AJrll 1 2003. no:;, occlled fO~i anl~lec- t o.11 Q'rde'rfor !.roroge Inle,,;on \~P.II 'Kenal G"as' Storage,Faclll"v II) I I( DSF II)' , , ' . ' , ,,'.' I ~ i:. ': : " , ,~, ' , ' '_", ' '. I The Co".,mi~slon no.. renro~i'l~I, '~;;:, 0 C~DIlc. ,hr.·orlng c"n Thl.. ocpllcarlon lor Mov 13, 200301 9:()0 , 'om aT Ihfo AlaSKa 011 ana Gos Conservàtiol'1 Com· I m,....lon 0133'; vVe!.T 7rn A v",nu"" , Suit", 100, Ancl'1or- age Ala..ko 99S01. A De~son 11'10',' reClut'sr rnOT tl'1e rfonl'otlvel\' !.cn(;odul..a heo~ln.;¡ bfo ne-Ia D', riling 0 \/lrill""n r..au",~r .vlrn Ihl: ComrnIS...,OI'1 r'l0 lot..rtnan 4:30 Þm o.n April 28i.2p03.· . ' If. arequestf.or a hea~lng Is nottlmelv .flled, th.eCornmlsslon will ,co.nslderthe ,issuance of an' order Mthquta hearing; To learn 'ifthe Co.mmls" ~~g-~2~~11 holdth~~ubll.c hearing, please call I'håqdltion, Q '~erson,may sUbmit written comments' regarding this application to the Alaska 011 and GasConservationCommlsSlonat 333 West, 7th Avenue, Suite 100, Anchorage, Alaska 99501.' , Written :comments must be.,.recelvedno later than 4:30ømon May 12, 2003, except that if the Com~ ',"mlssiP¡'~ec'PJ;~stoh6Ida puÞ.lI.c h~()rJng, vyrltt,en comments mUST 'be:recelvecf:ilõ làtèrtharî 9':00 am on May 13, 2003: '::,'i .': ", . .. If YÒU are' a' ~~~~òn witha'disabillty whcim'ciŸ' need a.special .mod¡~lcatlon In order to comment Or to "atte'nd the pub~I'C hearing, 'please contact Jodv Colombie at 793"1~1beforeMaY 1, 2003. . Sarah Palin, Chair Publish: April 11, 2003 '~ ) ) Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The application of Union Oil Company of California ("Unocal") for an order authorizing the underground storage of hydrocarbons by injection into the Tyonek Formation in proposed well Swanson River Unit KGSF #3. Union Oil Company of California ("Unocal") by letter dated April 1, 2003, has applied for an injection order for storage injection well, Kenai Gas Storage Facility #3 ("KDSF #3 "). The Commission has tentatively set a public hearing on this application for May 13, 2003 at 9:00 am at the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. A person may request that the tentatively scheduled hearing be held by filing a written request with the Commission no later than 4:30 pm on April 28, 2003. ) If a request for a hearing is not timely filed, the Commission will consider the issuance of an order without a hearing. To learn if the Commission will hold the public hearing, please ca11793-1221. In addition, a person may submit written comments regarding this application to the Alaska Oil and Gas Conservation Commission at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Written comments must be received no later than 4:30 pm on May 12, 2003, except that if the Commission decides to hold a public hearing, written comments must be received no later than 9:00 am on May 13,2003. If you are a person with a disability who may need a special modification in order to comment or to attend the public hearing, please contact Jody Colombie at 793-1221 before May 1, 2003.~. . ;'n. n ~ c __~>JL/~-d_.1¿;~ Sarah Palin, Chair Published Date: April 11, 2003 ADN AO# 02314042 } Re: Ad Order ) Subject: Re: Ad Order Date: 10 Apr 2003 11 :31 : 11 -0800 From: Legal Ads Anchorage Daily News <legalads@adn.com> To: lody Colombie <jody_colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 766241 Publication Date(s): April 11, 2003 Your Reference #: AO-02314042 Total: $149.46 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Thursday, April 10, 2003, Jody Colombie <jody_colombie@admin.state.ak.us> wrote: > >Please publish tomorrow. > > Jody 1 of 1 4/1 0/2003 3 :25 PM STATE OF ALASKA ADVERTISING ORDER ') . NOTICE TO PUBLISHER} ADVERTISING ORDER NO. INVOI~_ MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER "'......., CERTIFIED AO-02 314042 AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COpy OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE F AGENCY CONTACT DATE OF A.O. AOGCC R 333 West ih Avenue, Suite 100 o Anchorage, AK 99501 M ¿ Anchorage Daily News POBox 149001 Anchorage, AK 99514 Jociy Colombie Anril 10, 7003 PHOI'JE PèN (907) 793 -1 ??1 DATES ADVERTISEMENT REQUIRED: April 11 , 2003 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 United states of America AFFIDAVIT OF PUBLICA TION REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. A CERTIFIED COpy OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. ATTACH PROOF OF PUBLICATION HERE. division. Before me, the undersigned, a notary public this day personally appeared who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for _ consecutive days, the last publication appearing on the _ day of .2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER Daniel Donkel 2121 North Bayshore Drive, Ste1219 Miami, FL 33137 Jim Yancey Seal- Tite International 500 Deer Cross Drive Madisonville, LA 70447 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 T.E. Alford ExxonMobilExploration Com pany PO Box 4778 Houston, TX 77210-4778 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Shelia McNulty Financial Times PO Box 25089 Houston, TX 77265-5089 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 '} SO Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SO 57702 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 G. Scott Pfoff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 ) John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Alfred James 200 West Douglas, Ste 525 Wichita, KS 67202 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 Corry Woolington ChevronTexaco Land-Alaska PO Box 36366 Houston, TX 77236 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Levorsen 200 North 3rd Street, #1202 BOise,ID 83702 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Mark Dalton HDR Alaska 2525 C Street, Ste 305 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 ) Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Jim Arlington Forest Oil 310 K Street, Ste 700 Anchorage, AK 99501 William VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Jack Laasch Natchiq Vice President Government Affairs 3900 C Street, Ste 701 Anchorage, AK 99503 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 ) Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John F. Bergquist Babson and Sheppard PO Box 8279 Long Beach, CA 90808-0279 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eva!. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Rob Crotty CIO CH2M HILL 301 West Nothern Lights Blvd Anchorage, AK 99503 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,lnc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Barbara Fullmer ConocoPhillips Alaska, Inc. Legal Department A TO 2084 PO Box 100360 Anchorage, AK 99510-0360 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 ) Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Mark Worcester ConocoPhillips Alaska, Inc. Legal Department A TO 2090 PO Box 100360 Anchorage, AK 99510-2090 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Bob Shavelson Cook Inlet Keeper PO Box 3269 Homer, AK 99603 ') Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Jim Ruud ConocoPhillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 Bill Bocast PACE Local 8-369 c/o BPX North Slope, Mailstop P-8 PO Box 196612 Anchorage, AK 99519 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 BP Exploration (Alaska), Inc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Peter McKay 55441 Chinook Rd Kenai, AK 99611 Shannon Donnelly Phillips Alaska, Inc. H EST -Enviromental PO Box 66 Kenai, AK 99611 Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK99664 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richard Wagner PO Box 60868 Fairbanks, AK 99706 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 ) Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 James Gibbs PO Box 1597 Soldotna, AK 99669 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 "~I ) Penny Vadla Box 467 Ninilchik, AK 99639 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Charles Boddy Usibelli Coal Mine, Inc. 100 Cushman Street, Suite 210 Fairbanks, AK 99701-4659 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 ) ') ""...-..-- , UNOCAIL.8 -"-·-"·'·'''r..'", lJr'i()(-~,AL Alask~l rJr"iHông ,Dep~n·tnncnt: To: Winton AIJbcrL ~ AOGCC ..".~.- ..." -- Fax If. 276-7542 FfOJn: Jerr~_~.~wen. Oír#907-263,:_-76~O~ Fax H907-263-?~.~~,~.,Ccll if 907-360-2~?O , Re; Tn:U:~~~'l:littal of KG SF 1/.3 ~~~~:;a~_l,,~m plat & propos~_~ w~llbore schCluatic Pages inçluding covcr sheet ~1 Whl ton; The atta.ched plat shows the planned BI-IL ofT<GSF #], Per our di~cussion~ th,~ proposed B.HL of l«(] SF J.l.3 is relative close to t.he K.G-SP #2 BHL, in order to provide a high geologic probability of success in the ~ornewha.t stra.tigraphic rescrvoir~ but is jUf.:t. Ü:I.r enough away Ü'on1 T«(rSF #2 to potential1y aUow both cOJll1plctions to produce without interference during periods or extrC111C peak dei'nand in lIlid-winter. The surface lOl~ation on t.he diagnul1 is not yet f1nal. N'a.bors is in the process of developing the best rig layout dia.bry~(un considering the exi~iting wellheads and productlolll cquiplllCnt. This issue should be settled by the end of the wc:ck. I'm working on the PID at tIlÎs time. Please note that there could be SOllIe 111inor changes in the wellbore sche-rnatic by the tÜne the PTD arrives at your oflice, Thank~ .T en'y Bowen R,ECEiVED ß PR 0 ? I,~OO'~ ¡ \ .- L ..' ,~Iaska 0f1 & ~ Con~. CCffirOOsion ~,:~~~ l'd 998Z'oN 'd~08 lV80Nn ~dLO: l 800Z '8 'JdV ) I n\N^~~0()"'~'" : : .,,"",./·/::n f"\l'h) I~ . '- - -, -... - OF -"'- _.~ "'" - -rR~ï-- ~ PROPOSED GAS- I UNIT IIH "\ ()RA('\["'" ~ r'"A('\E \l' I _S!~. ~ -'-~ ~-~~: J=- - : -l-;roPo~T ~I:- ~ ! I .21-21 ~~ f. I 9nM' TD J ~ ¡ I ¡:,"',,,, urt' ~ r---~--L., ~ 2?44·~t' r Loca~:n ~! '-. q~ I 12-27 1 ~ .......... "I \ II, _"-t, f ~-121t1__ ~~ ~~~II-- - -,- a140~ - - 1 (] ~ I I \ 32-27" r 8 KGSIF#2'~ "----~--...j2 7 ~ 1""f'1 UIfo'¡\, ,.,'," r.v>¡'; K'Ot'I." "'''I'' !I'1'I1I:';t-. __ ~ ~! ~ I 2000~ ! ~ ¡ 43-28sl- ~ j~ ,i I I 1 23-27 M ¡: Sf ." 11) : 1. It,·' , ;(\1 S 0 r---.J r;;~;;;~'--'~ 1)) OJ /' ~ ~ 3m-27RD-2 4. J · ,\) e') , 1 + M-2?-J '~ ì 314-21 f \; ~ ',' ~ ~! . - JL - -- -- -_ _ _ lL _ ~_ _ _ _ _ _ _ _ _ _ ~_ ~. , ~ j , ¡ /\ ~ ~~1___~_ ~ 2;:~ol . ~ SWANSON RIVER FIELD I ~2-3, 32A.33 KENAI GAS STORAGE FACILITY I 0' 1,000' ~-33 , 800 ACRE LEASE I L__ šè~ I l~.::I!dI1.. . .~'.'. 1!!1 m Ii1!n:u ............ : '. I "!<;"'I. "..! J¡I~ ... ¡ 'd- m f 0 N- ~ -- ----1-' d ~oJi~viòÑii-.J~di Ò : I ~£ 00 ¡ '-8 "Jd qllll'l G I 23-221 SI +~ ( U~I ¿fFITn·'··'··---· '~~ ~ ; i I L CAILm'. -"'-.-----...............- ......- ......---- 'flKH= I~H' AMSL ~~~~~:~~ . M . ... ,......... I'" ,0. : ~ : ~ ~ ~ : !1¡¡Y; '--l.:__..J ~~~;~~1: : : : : : jl¡ : ~ :' ~ ~ ¡¡ ~ : ~ : .' .' .' :: II " - """'''''h, ".'.-.' I ! I I ~ I I .;-:-:< : ; ~ ; ~ ; ~ ' ~ ~ ~ ~ : Ii: ¡¡¡¡¡¡¡¡ : ~ : ~ : : : ; :~;~:~:~i\~Y: ;.:.:.", .. . . .. . i~~~1~:~¡ :T;~¡¡! ~ ¡ ~ ¡ j ¡ i i j ........' i¡jHHn ~~)~\n ~~~:;~i~~ ~~~~~~i~~ SIZF., L"1 ]/W' 9·,5/R" 3 '1/' 3 y~" ) Swanson River Unit Kenê~i Gê\S Stornge Fac,ilUy #?, Prol>oscd Sc,hcmntic 3/28/03 .:::~u".. ' ~~..:.n.'I"-'.'_M__,. __ 7" CASING &J,·~,.!lIN(LD.~TAIL WT CRADE 'l:Of.___.,_,_._,...,_.J~OTTOM 68 K-55 0' 40 XO' 40 N-80 0' 2000' 29 T~80 0' 7032' 9.2 fATC see T .-80 0' 9.2 IRTC see T .-80 S5 WW S(:teen 7000' 7000' 7532' p'~OPOS,~:O JEWELRY DETAIL .r:tQ.;'....._.".,...Dept~......JtcUl _ ."" '........,__ I. +1.. I 90(P Met.hanol ir~eoLion }10l1 (rn·-, 2.81 JH) 2. +/'·(j500' -r x 3 !;2" SA13-3 perm packer, K-22 anchor' seal <lssembly 3. +/..·(j520' 3 1!;~;t 'XN' tlipplt: (min. 10 - 2.75") " Hydmulic set packer ªi) +1- 60° inclination for wircli~e·~~~~~' \ 1'1) = 75]0' MD 16247' V D T' shoc between t.np of r'egervtlir and landing -point @ ~y-> - 90° inclination KGSt-<'#3 Prop ~CheITli1.I.ic "M7.R~O·' 1.doc 8 'd 9986'ON Drawn: MIORIO:~ DR A WN BY: JFll 'd~OJ l~JONn ~dLO: l 8006 '8 'Jd~ ') ') Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Telephone (907) 276-7600 Kevin A. Tabler Land Manager UNOCAL8 ";~:t_r.I~ Alaska April 1, 2003 APH 0 , ""I'''''¡í,;,~'~\on (\¡M,.. ' , <P (' ':'. ¡,.~ ¡... (¡¡¡¡I)). CC.w ..~:J! Ala$l,a VillJ."S. :..;.~,.¡¡¡ ..; State of Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Attn: Commission Chair Sarah Palin Re: Storage Injection Order #3 Rule 7 Administrative Approval Kenai Gas Storage Facility #3 Swanson River Field Dear Chair Palin: In 2001, Union Oil Company of California (Unocal) commenced operation of a gas storage pilot project within the boundaries of the Swanson River oil field. Unocal refers to this gas storage operation as the Kenai Gas Storage Facility. Unocal's gas storage project is intended to provide a certain stored volume of gas to meet peak rate requirements during seasonal high demand periods. The design is intended to put a large volume into a reservoir at relatively high injection rate and withdraw the gas at a relatively high rate during peak demand periods. On March 6, 2002, Union Oil Company of California (Unocal) filed with the Commission its Application for Injection Order for Storage Injection Well, Kenai Gas Storage Facility #2 (KG SF #2), and on June 5, 2002, the Commission approved Unocal's application and entered Storage Injection Order #3. Well KGSF #2 was originally planned as a redrill of SRU 212-27 with a 500' lateral in the Tyonek 62-5 sand - by letter dated March 25, 2002, Unocal requested well SRU KGSF #2 be a re-drill of existing well SRU #12-27 instead of well SRU #212-27. Unocal drilled KGSF#2 last summer but encountered a problem during completion which would tend to limit injectivity and/or productivity; thus, it remains shut-in pending further evaluation. Accordingly, pursuant to Rule 7, Storage Injection Order #3, Unocal hereby requests Commission approval to drill KGSF #3, a grass roots gas storage well with a horizontal completion in the Tyonek 62-5 Sand. Rule 7 authorizes the Commission to take Administrative Action as follows: Storage Injection Ordl.. )3 ) Rule 7 Administrative Approval Kenai Gas Storage Facility #3 Swanson River Field Page 2 Upon request or its own volition, the COlnmission lnay adlninistratively revise and reissue this order or any of its rules upon proper showing that the change is based on sound engineering and geoscience practices, will not allow stored fluids to escape frOln the injection zone, and will not cause waste. The drilling of KGSF #3 will provide an alternative delivery point for the storage of natural gas in the Tyonek 62-5 Sand, gas storage fonnation, and is reasonably necessary for U nocal to InaxÜnize storage potential. Cultural resources will not be affected by the proposed grass roots well because all work will be done froln existing pads and roads. Additionally, there is no history of hydrogen sulfide in the Swanson River Field in any of the fonnations that this proposed well will encounter during drilling operations. Finally, KGSF #3 targets the saIne injection zone as KGSF #2 (Tyonek 62-5 Sand, gas storage formation), and thus, (as the COlnlnission held in Storage Injection Order #3) the conclusions that applied to the drilling of KG SF #2 should also apply to the drilling of KG SF #3, as follows: 1) The project as described and proposed lneets the requirelnents of 20 AAC 25.252. 2) The lnechanical integrity of SRU KGSF #3 will be delnonstrated according to the requirelnents of 20 AAC 25.252(d) prior to initiating gas injection and storage operations. 3) The proposed injection of natural gas into the SRU KGSF #3 well for the purpose of storage will not cause lnovelnent of hydrocarbons into sources of freshwater. 4) The proposed storage of natural gas in SRU KGSF #3 will not cause fluids to lnove behind casing beyond the approved storage zone. 5) The proposed storage of natural gas in well SRU KGSF #3 will not propagate fractures through the confining zones. 6) The proposed injection of natural gas into the SRU KGSF #3 well for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. 7) Surveillance of operating parameters on the storage well and offset wells will aid in preventing stored gas from moving out of the formation where it is intended to be stored. The proposed spud date for KGSF #3 is May 15, 2003. Therefore, in accordance with Rule 7 of Storage Injection Order #3, Unocal respectfully requests the COlnmission's approval to drill KGSF #3 in order to provide Unocal with optionality with respect to injection and withdrawal of gas from the Tyonek 62-5 Sand, gas storage formation. Storage Injection Ord\..)3 Rule 7 Adlninistrative Approval Kenai Gas Storage Facility #3 Swanson River Field Page 3 ') If you have any questions in regards to this request, please call me at (907) 263-7600, or Mr. Jerry Bowen at (907) 263-7640. £;~;;~ K.evin A. Tabler ~~fA~E ~ ) F Jl.~l,~~~!Æ FRANK H. MURKOWSKI, GOVERNOR ~ Al't.S&A. OILAlWD GAS CONSERVATION COMMISSION 333 W. JTH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 April 14,2003 Kevin A. Tabler Unocal Alaska Union Oil Company of California P.O. Box 196247 Anchorage, AK 99519-6247 Re: Application for approval to drill KGSF #3 Dear Mr. Tabler: Pursuant to 20 MC 25.252 (a), the Alaska Oil and Gas Conservation Commis- sion ("AOGCC" or "Commission") on June 5, 2002 issued Storage Injection Or- der No.3, authorizing Union Oil Company of California ("Unocal1 to conduct underground storage of hydrocarbons by injection into the Tyonek Formation via the proposed Swanson River Unit ("SRU") KGSF #2 well. As a result of me- chanical difficulties in completing KGSF #2, Unocal subsequently requested Commission approval to drill and operate KGSF #3, a grass roots gas storage well with a horizontal completion in the Tyonek, in relatively close proximity to KGSF #2. Per 20 MC 25.252 (g), AOGCC may, upon application, approve modifications of existing or pending disposal or storage operations under 20 MC 25.507. The latter regulation requires a submission to the Commission with an Application for Sundry Approvals (Form 10-403), when an alternate well is to be utilized for storage injection. AOGCC publicly noticed Unocal's intent to drill and operate KGSF #3 on April 11, 2003. Please submit to the Commission an Application for Permit to Drill (Form 10-401) for well KGSF #3. If KGSF #3 injection performance is satisfac- tory, then per 20 MC 25.507, please submit a Form 10-403 modifying Storage Injection Order No.3 to authorize storage injection in KGSF #3. The Commis- sion may at that time require abandonment or operations shutdown of KGSF #2. Please be advised that AOGCC is not hereby authorizing expansion of Stor- age Injection Order No.3 to allow more than one operating well. 0Thank :ou for/nattention to this matter. " ~/ k·/ Sarah p~ Daniel T. amount, Jr. Chair Commissioner ¡f~ ~~ Randy iuedriCh Commissioner Storage Injection Order No.3 >]I' ) http://www.state.ak..us/local/akpages/ ADMIN/ogc/oindex/sio/sio3 STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION RE- THE APPLICATION OF UNION - OIL COMP ANY OF CALIFORNIA 333 West 7th Avenue Anchorage, Alaska 99501 ) Storage Injection Order No.3 ) ("Unocal ") for an order authorizing the ) Swanson River Field underground storage of hydrocarbons by inj ection into the Tyonek Formation in proposed well Swanson River Unit KGSF #2. IT APPEARING THAT: ) Swanson River Unit Well KGSF #2, ) (Re-drill of SRU #12-27) ) ) June 5, 2002 1. By application dated March 6, 2002 and received by the Alaska Oil and Gas Conservation Commission ("Commission") on March 7, 2002, Union Oil Company of California ("Unocal") requested an order from the Commission authorizing the underground storage of hydrocarbons by injection into the Tyonek Formation of the proposed Swanson River Unit ("SRU") KGSF #2 well. This proposed well is a 500-foot long, lateral re-drill of existing well SRU #212-27, which is located in Section 27, Township 8 North, Range 9 West, Seward Meridian. 2. Unocal proposes to inject gas into SRU KGSF #2 for storage during summer months and produce back the gas for sales during winter months to meet peak demand. 3. Notice of opportunity for public hearing was published in the Anchorage Daily News Anchorage Daily News on March 22, 2002 in accordance with 20 AAC 25.540. 4. By letter dated March 25, 2002 and received by the Commission on March 28, 2002, Unocal requested well SRU KGSF #2 be a re-drill of existing well SRU #12-27 instead of well SRU #212-27. 5. The Commission received no comments concerning the application or requests for a public hearing. 6. By Commission request, a hearing concerning Unocal's application was convened in conformance with 20 AAC 25.540 at the Commission's offices, 333 W. 7th Avenue, Suite 100, Anchorage, Alaska 99501 on April 30, 2002. Concurrently, the Commission heard testimony concerning proposed injection of gas into well SRU KGSF #2. Storage Injection Order No.3 http://www.state.ak.usllocal/akpages/ ADMIN/ogc/oindex/sio/sio3 ) FINDINGS: 1. U nocal is the operator of the Swanson River Field. 2. Unocal proposes to drill a 500-foot lateral extension to the existing well SRU #12-27, rename the well SRU KGSF #2, and utilize the lateral extension for the proposed storage injection program. 3. The gas storage project is intended to provide a certain stored volume of gas to meet peak rate requirements during seasonal high demand periods. The design is intended to put a large volume into a reservoir at relatively high injection rate and withdraw the gas at a relatively high rate during peak demand periods. 4. Well SRU #12-27 and Unocal's proposed lateral extension lie within Federal lease A-028406. The U.S. Department of the Interior is the owner of the subsurface rights. 5. There are no other operators within a one-quarter mile radius of the proposed SRU KGSF #2 well. 6. Unocal has given notice of its application by certified mail to the surface owners within a one-quarter mile radius of the proposed SRU KGSF #2 well. 7. 40 CFR 147.1 02(b) provides that aquifers below 1700 feet from the surface and within a 1/4 mile of the Swanson River Field are exempted in accordance with 40 CFR 144. 7(b) and 40 CFR 146.4. 8. Unocal proposes to conduct dry gas storage injection within the proposed SRU KGSF #2 well in the 62-5 sand of the Tyonek Formation. Unocal describes this sand as lying between 6233 and 6253 feet MD in offset well SRU #212-27. 9. Two other wells lie within one-quarter mile radius of the proposed SRU KGSF #2 well: SRU #212-27 and SRU #314-27. These wells penetrate the 62-5 sand in the proposed gas storage area. Offset well SRU #21-27 lies slightly more than 1/4 mile northeast of KGSF #2, and it also penetrates the 62-5 sand. 10. Upper confinement of the 62-5 gas sand is provided by 13 feet of impermeable claystone, which is overlain by 10 feet of coal, and then approximately 50 feet of water-bearing sandstone. Lower confinement is provided by about 19 feet of impermeable siltstone and claystone that is underlain by 21 feet of water-bearing sandstone. 11. Calculated porosity for the 62-5 sand ranges from 24 to 30 percent. Average water saturation is estimated to be between 45 and 55 percent. Well SRU #212-27 was drilled from the same pad as SRU #12-27, and its surface location lies 211 feet to the southeast. At the top of the 62-5 sand, the well bores are approximately 260 feet apart. During September of 1997, the 62-5 sand was perforated in SRU #212-27 from 6237 feet to 6254 feet MD, and put on gas production. By February of 2001, the 62-5 interval no longer flowed gas, and it was abandoned. 12. Initial reservoir pressure in SRU #212-27 was 2841 psia at 6078' TVDss (Attachment 6). This is equivalent to 2852 psia at 6245' MD and TVDss in the SRU #212-27 well. Storage Injection Order No.3 http://www.state.ak.us/local/akpages/ ADMIN/ogc/oindex/sio/si03 ) 13. Reservoir pressure was depleted to about 800 psi after producing 2 BCF based on the material balance P/Z versus cumulative plot presented in the application. 14. Material balance analysis of historical production and injection indicate an original gas in place of 2.9 BCF in the 62-5 sand. Produced volume corresponds to 690/0 recovery as of May 2001. Material balance analysis supports the contention that the interval proposed for gas storage covers a limited area and is isolated from other strata. 15. Well records indicate the 62-5 sand in the SRU #12-27 and #212-27 wells is adequately protected by casing and cement. Perforations in the 62-5 sand within the SRU #212-27 well have been properly abandoned. 16. Well records indicate the 62-5 sand in well SRU #21-27 is covered by 7 inch production casing, but is not protected by cement. Unocal interprets the 62-5 sand in SRU #21-27 as being separated by a permeability barrier from the 62-5 sand of the proposed injection area that surrounds SRU #12-27. 17. Surveillance of offset wells and storage well operating parameters will be necessary to ensure gas does not move out of the storage sand. 18. The fluid proposed for injection is predominantly dry methane produced from a liquid extraction plant for produced gas from the Hemlock Formation in the Swanson River Field and from the Trading Bay Unit. Specific gravity of the injected gas is expected to be 0.59 (air = 1.0). 19. Estimated maximum daily injection volume is 10 MMSCF/D, and expected average wellhead injection pressure is 2700 psi. Proposed maximum injection pressures will be maintained less than compressor outlet pressure of 3000 psiUdh1]. 20. Formation fracture gradients measured in shallower and deeper formations ranged from .8 psi to 1.03 psi per foot. The Tyonek Formation did not have any direct fracture gradient determined. Calculated fracture gradient for sandstones with 25 percent porosity and gas saturation range from .6 to 1.0 psi/foot at the depth of the Tyonek 62-5 sand. 21. If the maximum injection pressure is limited to a wellhead pressure of 3000 psi, fractures will not be propagated in the sandstone or confining strata. This limitation is equivalent to a pressure gradient of [SFD2].54 psiUdh3]/foot to the Tyonek Formation 62-5 sand at 6245 TVDss. 22. The Operator will demonstrate the mechanical integrity of SRU KGSF #2 according to the provisions of 20 MC 25.252(d) prior to initiating gas injection and storage operations. CONCLUSIONS: 1. The project as described and proposed meets the requirements of 20 MC 25.252. 2. Mechanical integrity of SRU KGSF #2 must be demonstrated according to the requirements of 20 MC 25.252(d) prior to initiating gas injection and storage operations. 3. The proposed injection of natural gas into the SRU KGSF #2 well for the purpose of storage Storage Injection Order No.3 '. http://www.state.ak.us/local/akpages/ ADMIN/ogcloindex/sio/sio3 ,) ) will not cause movement of hydrocarbons into sources of freshwater. 4. The proposed storage of natural gas in SRU KGSF #2 will not cause fluids to move behind casing beyond the approved storage zone. 5. The proposed storage of natural gas in well SRU KGSF #2 will not propagate fractures through the confining zones. 6. The proposed injection of natural gas into the SRU KGSF #2 well for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. 7. Surveillance of operating parameters on the storage well and offset wells will aid in preventing stored gas from moving out of the formation where it is intended to be stored. NOW, THEREFORE, IT IS ORDERED that the following rules, in addition to statewide requirements under 20 MC 25, apply to the underground storage of hydrocarbons by injection in the SRU KGSF #2 well. RULE 1: STORAGE INJECTION The Commission approves the injection for storage of natural gas into the 62-5 sand of the Tyonek Formation within the SRU KGSF #2 well bore. The Operator shall report disposition of production and injection as required by 20 MC 25.228, 20 MC 25.230, and 20 MC 25.235. RULE 2: CONTINUED MECHANICAL INTEGRITY This approval is conditioned on the operator's demonstrating the mechanical integrity of SRU KGSF #2 in accordance with 20 MC 25.252 (d), (e) and (f). RULE 3: MAXIMUM INJECTION PRESSURE The maximum wellhead injection pressure shall be limited to 3000 psi or a formation pressure gradient of .54 [SFD4]psi per foot[jdh5]. RULE 4: MONITORING PROGRAM Operating parameters including injection rate, injection pressure, and annulus pressures (for both the injection well and offsets within 1/2 mile) must be monitored and reported to the Commission on a monthly basis. Significant changes in pressure must be immediately reported to the Commission. An annual report evaluating the performance of the injection operation must be submitted in conjunction with the annual material balance calculations described below. RULE 5: ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than 60 days after the beginning of each calendar year. Storage Injection Order No.3 http://www.state.ak.us/local/akpages/ ADMIN/ogc/oindex/sio/sio3 ) RULE 6: EXPIRATION OF APPROVAL ) As provided in 20 AAC 25.252U), if storage operations are not begun within 24 months after the date of this order, the injection approval will expire unless an application for extension is approved by the Commission. RULE 7 ADMINISTRATIVE ACTION Upon request or its own volition, the Commission may administratively revise and reissue this order or any of its rules upon proper showing that the change is based on sound engineering and geoscience practices, will not allow stored fluids to escape from the injection zone, and will not cause waste. DONE at Anchorage, Alaska and dated June 5, 2002. Cammy Oechsli Taylor, Chair Alaska Oil and Gas Conservation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission Storage In.iection Order Index Storage Injection Order No.2 t· .::. http://www.state.ak..us/local/a1(pages/ ADMIN/ogc/oindex/sio/sio2 ) ) STATE OF ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF UNION) Storage Injection Order OIL No.2 COMP ANY OF CALIFORNIA ) ("Unocal") for an order authorizing the) Swanson River Field underground storage of hydrocarbons ) Swanson River Unit Well by #43-28 injection into the Tyonek reservoir in ) existing well Swanson River Unit ) #43-28. ) June 15,2001 IT APPEARING THAT: 1. By application dated May 2, 2001, Union Oil Company of California ("Unocal") requested an order from the Alaska Oil and Gas Conservation Commission ("Commission") authorizing the underground storage of hydrocarbons by injection into the Tyonek Formation of the Swanson River Unit (SRU) #43-28 well, which is located in Section 28, Township 8 North, Range 9 West, Seward Meridian. Unocal proposes to inject gas for storage during the summer months and produce the gas for sales during winter months. 2. Notice of opportunity for public hearing was published in the Anchorage Daily News Anchorage Daily News on May 5, 2001 in accordance with 20 MC 25.540. 3. Cook Inlet Region, Inc. ("CIRI"), a royalty owner in the Swanson River Field, indicated support for the gas storage project in correspondence dated May 9, 2001, but raised questions relating to the royalty and accounting obligations of the Operator. The Commission informed CIRI that those questions were outside the Commission's regulatory jurisdiction, and in any event Unocal informed the Commission that CIRI's concerns have been satisfied. 4. The Commission received no other comments concerning the application or requests for a public hearing. FINDINGS: 1. Unocal is the operator of the Swanson River Field. There are no other operators within a one-quarter mile radius of the existing SRU #43-28 well, the well bore to be utilized for the proposed for storage injection program. 2. Unocal has given notice of its application by certified mail to the surface owners within a one-quarter mile radius of the SRU #43-28 well. 3. Unocal proposes to conduct dry gas storage injection within the existing SRU #43-28 well, between the measured depths of 6375 and 6443 feet in the 64-5 sand of the Tyonek Formation. Storage Injection Order No.2 , http://www.state.ak.us/local/akpages/ ADMIN/ogc/oindex/sio/sio2 ) -) 4. There are currently no other wells within one-quarter mile radius of the existing SRU #43-28 vertical well. 5. 40 CFR 147.1 02(b) provides that aquifers below 1700 feet from the surface and within a 1/4 mile of the Swanson River Field are exempted in accordance with 40 CFR 144.7(b) and 40 CFR 146.4. 6. Impermeable siltstone 107 feet thick, claystone and coal overly and provide upper confinement from adjacent Tyonek Formation sandstone for the 64-5 sand in the SRU #43-28 well. In addition, over 680 feet of shale confine the proposed storage injection interval from the base of the non-exempted aquifers in the SRU #43-28 well. Lower confinement is provided by over 290 feet of impermeable siltstone, claystone and coal. 7. Offset well control indicates the 64-5 sand is of limited lateral extent, such that injected gas will be confined to the pool into which it is injected. Four wells penetrate the sand in the proposed gas storage area: SRU #43-28, SRU #41-28, SRU #34-28 and SRU #41-33. Of these, only the SRU #43-28 penetrates the 64-5 sand in the gas column, and this well established the gas-water contact at approximately 6390 feet measured depth. 8. Calculated porosity for the 64-5 sand in the SRU #43-28 well ranges from 100/0 to 360/0. Average water saturation is estimated as between 51 % and 55%. 9. The SRU #43-28 well was recompleted in December of 1998 to test the 64-5 sand. The well was perforated from 6380 to 6388 feet measured depth and produced dry gas at an initial rate of 3.0 mmcfd. Cumulative production from the 64-5 sand in SRU #43-28 was 1.31 bcf through March of 2001. 10. Material balance analysis of historical production and injection indicate an original gas in place of 1.55 bcf in the 64-5 sand, corresponding to 85% recovery as of 2/28/01. This material balance analysis supports the conclusion that the interval proposed for gas storage is isolated from other strata. 11. The SRU #43-28 well is completed with 7 inch casing run and cemented to 10875 feet measured depth, with a stage collar located at 7114 feet measured depth. 12. A cement bond log was run on July 21, 1961, and it indicates the tops for the first and second stage cement at 9100 and 3675 feet measured depth, respectively. This log indicates good cement bond across the proposed gas storage interval and isolation between the injection strata and the remainder of the well bore. 13. SRU #43-28 meets the casing, cementing, and tubing criteria of 20 AAC 25.412. 14. The mechanical integrity of SRU #43-28 was demonstrated on May 15, 2001 in accordance with 20 AAC 25.412. 15. The fluid proposed for injection is predominantly methane produced from a liquid extraction plant for produced gas from the Hemlock Formation in the Swanson River Field. Specific gravity of the injected gas is expected to range from about 0.61 to 0.59 (air = 1.0). 16. Estimated maximum daily injection volume is 10 mmcfd, and expected wellhead injection pressure is 2400-2600 psi. Proposed maximum injection pressures will be maintained less Storage Injection Order No.2 .. http://www.state.ak.us/local/akpages/ ADMIN/ogc/oindex/sio/sio2 ) than the original wellhead pressure of 2850 psi. ') 17. If the maximum injection pressure is limited to the original wellhead pressure of 2850 psi, fractures will not be propagated in the confining strata, as the sandface injection pressure will be less than the original reservoir pressure of 3300 psi for the 64-5 sand in the SRU #43-28 well. CONCLUSIONS: 1. The proposed injection of natural gas into the SRU #43-28 well for the purpose of storage will not cause movement of hydrocarbons into sources of freshwater. 2. The proposed storage of natural gas in SRU #43-28 will not cause fluids to move behind casing beyond the approved storage zone. 3. The proposed storage of natural gas in well SRU #43-28 will not propagate fractures through the confining zones. 4. The proposed injection of natural gas into the SRU #43-28 well for the purpose of storage will not cause waste, jeopardize correlative rights, endanger freshwater, or impair ultimate recovery. NOW, THEREFORE, IT IS ORDERED that the following rules, in addition to statewide requirements under 20 MC 25 apply to the underground storage of hydrocarbons by injection in the SRU #433-28 well. RULE 1: STORAGE INJECTION The Commission approves the injection for storage of natural gas into the 64-5 sand of the Tyonek Formation, between the measured depths of 6375 and 6443 feet in SRU #43-28. The Operator shall report disposition of production and injection as required by of 20 MC 25.228, 20 MC 25.230, and 20 AAC 25.234. RULE 2: CONTINUED MECHANICAL INTEGRITY This approval is conditioned on the operator's demonstrating the continued mechanical integrity of SRU #43-28 in accordance with 20 MC 25.252 (d), (e) and (f). RULE 3: MAXIMUM INJECTION PRESSURE The maximum wellhead injection pressure shall be limited to 2850 psi. RULE 4: ANNUAL MATERIAL BALANCE The operator shall annually provide to the Commission material balance calculations of the gas production and injection volumes to provide assurance of continued reservoir confinement of the gas storage volumes. This information shall be submitted no later than 60 days after each anniversary date of this order for the 12-month period ending on that anniversary date RULE 5: EXPIRATION OF APPROVAL Storage Injection Order No.2 ,~ , \..I http://www.state.ak.us/local/akpages/ AD MIN/ogc/oindex/sio/sio2 )) As provided in 20 AAC 25.252U), if storage operations are not begun within 24 months after the date of this order, the injection approval will expire unless an application for extension is approved by the Commission. DONE at Anchorage, Alaska and dated June 15, 2001. Cammy Oechsli Taylor, Chair Daniel T. Seamount, Jr., Commissioner Julie M. Heusser, Commissioner Storaae Injection Order Index ~t'.f)a,; aø:ï S"1orc..j"- h:cr,:¿f"1 "3 WELL PERMIT CHECKLIST COMPANYC¡rJO'~a ( WELL NAME 1" PROG~AM: Exp _ Dev _ Redrll _ Re-Enter _ Serv X Wellbore seg _ FIELD & POOL "77 '? .s:~& IN~C~.¢7 ,'v J ( 610/'&01"") GEOL AREA 'i? :/ . 0 UNIT# 91'1 <f ONIOFF SHORE ~ ADMINISTRATION 1. Permittee attached. . . . . . . . . ~.I. . . . . . . . . . . . N 2. Lease number appropriate. . . . . . . . . . . . . . . . . . . N I ( II / ,\ / / .)) r 3. Unique well name and number. . . . . . . . . . . . . . . . . N 7 tUð ,dor~.. ]"(".;0;[0).-,.. ,....rJtlf.$ _ o~,.~ J 17')~. b~~ " )r" ;'-L".A.J -r~ 4. Well located in a defined pool.. . . . . . . . . . . . . . . . . N I //' -/,. l) I /1 J / J 5. W ell located proper distance from drilling unit boundary. . . N ~). /,'r,-",,-:r:. ~2 - 5 (Jð#J~ ,çc../tI-J - 11~- o~~ 1"1'). d t'YcI(4{S ~r~ 10f""..!! 6. Well located proper distance from other wells.. . . . . . . .. -K N // -# / / , ,~ J. / j APPR DATE 7. Sufficient acreage available in drilling unit.. .......... f1 N ~e. Sr.:..v1~_J. SIc) ~~ '.V~ ~"1 ~"'1I"AJ7/"a:!£I,..~ ~.JItI-1r- rq/to- h/ ~J/ / 8. If deviated, is wellbore plat included.. . . . . . . . . . . . . . fj) N / I / / .-/)I)j ¿f ¿ 1:1'-- Po/-cÖ 9. Operator only affected party.. . . . . . . . . . . . . . . . . . ~ N ~ r,.-- . '-/ l)r~ ~ð¡#.d M _~t'Y'oA-~ M(~ ,,-e.,)<9//.. /?::,/.I"]M"""~// 10. Operator has appropriate bond in force. . . . . . . . . . . .. t N L)) / J J II //j / ) J ...J 11. Permit can be issued without conservation order. . . . . . . . N I ~'ð" ///-er~J, J &. ~ Q/-tl"JrA...,-1"e//"1 p-)~, r <y,jpl l¿)t'ifr..- .... ~ 12. Permit can be issued without administrative approval.. . . . . y !f\ù ,/ piÆ- V V' p~ A-- ./' (Service Well Only) 13. Well located wlin area & strata authorized by injection order #-----.:Jt Y '1\f þ ~...,~ S /ð I I S9-'ooS ./ 1(,( - o!'S I (gO -o!. 7 P ~ A- ? (Service Well Only) 14. All wells wlin ~ mile area of review identified. . . . . . . . .. ~N ~~l À . ~- S~tA.. 1'2-- <.. 7..: Si.'-L 2/'2..- 1¿7' sIJt~. 32.-2..7;- S¡¿lA LjJ,'" ¿<¡ ( o - /I~ . I b7 ....I ENGINEERING 15. Conductor string provided. . . . . . . . . . . . N f.¡t 0/1- ~q; '5/{/Z,J- 16. Surface casing protects all known USDWs. . . . . . . . . . . N ./ P ',111 ó I . øc.¡ J ~ lOll - (,)/ (,.I J 17. CMT vol adequate to circulate on conductor & surf csg. . . . . jN .ž r-L;ðc4., 4ï ~.r~.". ?¡o/ ¿¡ /2"'7 Q-?r"J e.YþJ)~ 18. CMT vol adequate to tie-in long string to surf csg. . . . . . . . N (j / 19. CMT will cover all known productive horizons. . . . . . . . . . N -#'~ Q~""'~ - £/.t:, 20. Casing designs adequate for C: T, B & permafrost. . . . . . . N ../~ . L 0, 21. Adequate tankage or reserve pit.. . . . . . . . . . . . . . . . .. N {\,f ot'S I -l . 22. If a re-drill, has a 10-403 for abandonment been approved. . . ~¥-N- Nh 23. Adequate wellbore separation proposed.. . . . . . . . . . . . ti2 N ',. 24. If diverter required, does it meet regulations. . . . . . . . . . .~ y N 11, It' Vt1.A-f l/~ W~ \f ev. 25. Drilling fluid program schematic & equip liS.t adequate. . . . . i. N m«..f fYlN 'f.q- fJ., 'fJe¡ 26. BOPEs, do they meet regulation. . . . . . . . . . . . . . . . N APPR DATE 27. BOPE press rating appropriate; test to :5 DOt? psig. . N i'1l s P ¡ÇO 0 fJ CA' 28. Choke manifold complies w/API RP-53 (May 84). . . . . . . . . N \NG'f- C¡{1-YO~ 29. Work will occur without operation shutdown. . . . . . . . . . . ~... ~ 30. Is presence of H2S gas probable.. . . . . . . . . . . . . . . . Y (tV, Ji d F l M l d1 te ~ ( h ~ (l./ P r Å) ~:::G~ell Only) :~.. ~:::::I ::~:~~:: :/:~~:::~ :~::~:::~r~~. . .. .. .. .. @~ N~N Ce....e.. ï NUl V ç. e ""I R.. u.dl t" ¥I,- Ct>.c mu .../""- ¿'" "'J+<' . ( APPR DATE 33. Data presented on potential overpressure zones. . . . . . . . ~./ / 34. Seismic analysis of shallow gas zones. . . . . . . . . . . . . £,(. f'zy~~ 35. Seabed condition survey (if off-shore). . . . . .. ...... {Exploratory Only) 36. Contact name/phone for weekly progress reports. ...... Y. PETROLEUM ENGINEERING: TEM UIC ENGINEER JBR COMMISSIONER: - JOT~ DTS Comments/lnstructions: GEOLOGY: RP~ RESERVOIR JDH SFD WGA / MJW Rev: 07/12/02 G:\geology\perm its\checklist.doc
