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Home My WebLink About196-008Suspended Well Inspection Review Report Reviewed By: P.I. Suprv Comm ________ JBR 09/10/2025 InspectNo:susSTS250730084823 Well Pressures (psi): Date Inspected:7/28/2025 Inspector:Sully Sullivan If Verified, How?GPS Suspension Date:4/24/1996 Tubing: IA: OA: Operator:Hilcorp North Slope, LLC Operator Rep:Chris Casey Date AOGCC Notified:7/25/2025 Type of Inspection:Subsequent Well Name:SOURDOUGH 3 Permit Number:1960080 Wellhead Condition Wellhead was uncovered with swab valve and wing valves locked shut. No gauges on the tree. Surrounding Surface Condition No sign of contaminents or trash on the tundra Condition of Cellar Cellar was covered and inaccessible Comments Flew out to Sourdough 3 by helicopter. Well sign was updated and replaced. The swab and wing valves were locked shut. We put a guage on the valve caps and all read 0 psi. Supervisor Comments Photos (7); Inspection does not meet the intent of AOGCC's IGB 21-002A; recommend reinspection during Summer 2026 that includes tubing and IA pressure checks and inspection of well cellar. Suspension Approval:Completion Report Location Verified? Offshore? Fluid in Cellar? Wellbore Diagram Avail? Photos Taken? VR Plug(s) Installed? BPV Installed? Wednesday, September 10, 2025 9 9 9 9 9 9 9 9 9 MEU Inspection does not meet the intent of AOGCC's IGB 21-002A; recommend reinspection during Summer 2026 that includes tubing and IA pressure checks and inspection of well cellar. MEU 2025-0728_Suspend_Sourdough-3_photos_ss Page 1 of 4 Suspended Well Inspection – Sourdough-3 PTD 1960080 AOGCC Inspection Rpt # susSTS250730084823 Photos by AOGCC Inspector S. Sullivan 7/28/2025 New Well Sign Aerial View of Sourdough-3 2025-0728_Suspend_Sourdough-3_photos_ss Page 2 of 4 Well as Found at arrival; cellar cover was not removed by Hilcorp for inspection Swab and Wing Valves locked preventing Tubing and IA pressure checks; photo shows checking valve caps for leakage past locked valves 2025-0728_Suspend_Sourdough-3_photos_ss Page 3 of 4 Outside of Well Surrounding Area 2025-0728_Suspend_Sourdough-3_photos_ss Page 4 of 4 New Well Sign Installed CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Wyatt Rivard To:Regg, James B (OGC) Cc:McLellan, Bryan J (OGC); Ryan Thompson Subject:Re: [EXTERNAL] Sourdough-3 Suspended Well Inspection 7/28/2025 Date:Friday, September 26, 2025 1:19:25 PM Attachments:2025-0728_Suspend_Sourdough-3_ss.pdf Jim, We will get Sourdough 3 on our schedule for an out of cycle inspection prior to 7/31/2026. Reviewing the well file, the tree valves appear to have been left chained/locked closed since initial suspension in 1996. We will likely make at least one pre-inspection trip back to the well to evaluate/service the tree valves, verify communication with the annuli and replace the cellar cover ahead of the inspection. Thank You, Wyatt Rivard | Well Integrity Manager O: (907) 777-8547 | C: (509)670-8001 | RM:10616 Hilcorp Alaska, LLC | Anchorage, AK 99503 From: Regg, James B (OGC) <jim.regg@alaska.gov> Sent: Thursday, September 25, 2025 10:33 AM To: Wyatt Rivard <wrivard@hilcorp.com> Cc: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov> Subject: [EXTERNAL] Sourdough-3 Suspended Well Inspection 7/28/2025 Sourdough 3 Pt Thomson Field PTD 1960080; Sundry 320-440 On 7/28/2025, an AOGCC Inspector accompanied Hilcorp personnel on a suspended well inspection of the Sourdough well. AOGCC records show that the well suspension was renewed for a 10-year period effective March 10, 2021, making this the mid-term inspection required by regulation, as written at the time of the suspension approval. AOGCC Guidance Bulletin 21-002A clarified the inspection requirements. [Note – since the 2021 approval, regulation 20 AAC 25.110 has been revised to limit new suspension terms to up to 5 years, and Guidance Bulletin 21-002B was refreshed to clarify the information that is to be readily 6RXUGRXJK 37' available at the time of a suspended well inspection.] Attached is a copy of the AOGCC Suspended Well Inspection report, which indicates that the well pressures (tubing, tubing-casing annulus, casing-casing annulus) were not obtained during the 7/28/2025 inspection due to the swab and wing valves being locked in the closed position. AOGCC regulation 20 AAC 25.110(f) requires well pressure readings to be taken during the inspection. Hilcorp is required to re-inspect Sourdough 3 not later than July 31, 2026, to include inspecting the condition of the well cellar, documentation of the well pressures (remove BPV and VR plugs, if installed), and replacement of the deteriorated cellar cover. Jim Regg Supervisor, Inspections AOGCC 333 W. 7th Ave, Suite 100 Anchorage, AK 99501 907-793-1236 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. T39896 T07252 Department of Natural Resources OFFICE OF THE COMMISSIONER 550 West 7th Avenue, Suite 1400 Anchorage, AK 99501-3561 Main: 907.269.8431 Page 1 of 1 December 14, 2023 Brett Huber Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Dear Chair Huber: The Department of Natural Resources issued decisions extending confidentiality under AS 31.5.035(c) on the reports and information from the following five wells: • Staines River State #1 on April 1, 1981 • North Staines River #1 on April 26, 1984 • Alaska State G-2 on July 26, 1985 • Sourdough #2 on February 28, 1996 • Sourdough #3 on March 4, 1998 Following the decision of the Third Judicial District Superior Court in Donkel v. State of Alaska, the attached order directs that the extended confidentiality decisions on the reports and information from these five wells be rescinded and the information be made available. Therefore, these extended confidentiality periods for the five aforementioned well reports and information are terminated, and the files may now be released to the public. Sincerely, John C. Boyle III Commissioner Alaska Department of Natural Resources CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Jerimiah Galloway To:Roby, David S (OGC); Michael Schoetz Cc:Carlisle, Samantha J (OGC); Davies, Stephen F (OGC) Subject:RE: [EXTERNAL] RE: Sourdough #3 Well P&A Suspension Renewal Approval (SOURDOUGH3) Date:Monday, February 27, 2023 3:37:34 PM Thank you Dave. This will suffice. I just want to make sure we are not delinquent on any inspections/renewals. I will update my dates accordingly with this information. Jerimiah Jerimiah Galloway MPU/Islands Well Integrity Engineer Email: jerimiah.galloway@hilcorp.com O: (907)564-5005 C: (828)553-2537 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Monday, February 27, 2023 11:56 AM To: Michael Schoetz <mschoetz@hilcorp.com> Cc: Jerimiah Galloway <Jerimiah.Galloway@hilcorp.com>; Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov>; Davies, Stephen F (OGC) <steve.davies@alaska.gov> Subject: [EXTERNAL] RE: Sourdough #3 Well P&A Suspension Renewal Approval Hi Michael, Unfortunately with Sourdough 3 being a well with indefinite confidentiality I can’t share anything out of the well file (I can’t even get access to the well file in the first place unless a quorum of the Commissioners say I can) with anyone, not even the operator of record. In the past when operators have wanted access to information in our indefinite confidential well files for wells they are operators of we’ve required written authorization from someone high up at the company, usually like a VP level or above, that can authorize designated staff from the company to come and view the file in our offices under supervision of our staff. In such instances we allow the operator’s designee(s) to take notes, but they cannot make copies of anything in the files. I can assure you that as I stated in the email attached to your original message the suspension was renewed for a full 10 years and it was effective on March 10, 2021. If you need more than my word on this we’ll have to go through the process outlined above. Regards, CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dave Roby (907)793-1232 From: Michael Schoetz <mschoetz@hilcorp.com> Sent: Friday, February 24, 2023 12:48 PM To: Roby, David S (OGC) <dave.roby@alaska.gov> Cc: Jerimiah Galloway <Jerimiah.Galloway@hilcorp.com> Subject: Sourdough #3 Well P&A Suspension Renewal Approval Dave, Attached, please find two documents: Application for Renewal of Suspension of Sourdough #3 Well Email dated 3/11/21 stating that the P&A suspension of the Sourdough #3 well was renewed for 10 years (ending 2031). Might you have any formal documentation that Hilcorp’s request was approved? Mr. Tambe is no longer with Hilcorp, and my personal records do not include anything more than the attached email. I will make myself available at your convenience to discuss further as needed. Thank you, Michael W. Schoetz, CPL Hilcorp Alaska, LLC Division Landman Main: (907) 777-8300 Office: (907) 777-8414 Mobile: (281) 685-0902 Email: mschoetz@hilcorp.com 3800 Centerpoint Dr., Suite 1400 | Anchorage, Alaska 99503 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. wbankston@bgbalaska.com sadler@bgbalaska.com 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com William M. Bankston, Shareholder Christopher M. Brecht, Shareholder Chris D. Gronning, Shareholder Suzanne A. Adler, Associate Julius J. Brecht, Of Counsel Owen D. Shortell, Of Counsel Douglas A. Karet, Of Counsel* *Admitted in Colorado March 31, 2022 Corri A. Feige, Commissioner c/o Hugh Dowell Alaska Department of Natural Resources 550 West 7th Avenue, Suite 1400 Emailed to hugh.dowell@alaska.gov Anchorage, Alaska 99501 and Sent by Hand-Delivery Derek Nottingham, Jessie Chmielowski, Dan Seamount & Jeremy Price c/o Thomas Ballantine Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Emailed to tab.ballantine@alaska.gov Anchorage, Alaska 99501 and Sent by Hand-Delivery Re: Request for Well Log Data Our File No. D4127-12 Dear Commissioner Feige: This letter is in follow up to the undersigned’s December 3, 2021 request for the following well log data which relates to Point Thompson. Said letter requested that the State release data pertinent to the following wells to Dan Donkel and Donkel Oil (collectively, “Donkel”) by December 17, 2021: Sourdough #3 Sourdough #2 Alaska State G-2 Staines River State #1 North Staines River #1 To date, no response to the undersigned’s December 3, 2021 request has been received. This letter requests that the State provide a copy of the above listed well data (hereinafter “the requested well data”) no later than April 15, 2022 or Donkel will take all appropriate action to compel the release of said information. Alaska Department of Natural Resources Alaska Oil and Gas Conservation Commission March 31, 2022 Page 2 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com The undersigned’s December 3, 2021 letter sets forth the basis for DNR’s position that the requested well data should remain confidential. A copy of that letter is attached hereto as Exhibit 1, and those arguments are fully incorporated by reference. To briefly address this issue, as you are aware, unleased land within a three-mile radius of the requested wells was made available in a January 2021 ANWR lease sale and the State held leases were previously offered for sale in earlier North Slope lease sales. All lease payments and bonuses related to the 2021 ANWR lease sale have been paid, and the leases have since been issued to the successful bidders. Since the unleased land within three miles of the requested wells has been made available for sale, there is no basis under AS 31.05.035 or 11 AAC 83.153(a) for the Department to fail to release the well log data within 90 days. Despite the fact that the lease sales occurred in January 2021, the Department has failed to release the requested well file data to date, despite the fact that more than 10 months have elapsed since the date of the January 2021 ANWR sale. It is Donkel’s position that the Department has no legal basis or factual basis to refuse to release the requested well file data in light of the foregoing. Accordingly, since DNR does not have any legal basis to refuse to release the requested well file data, Donkel reiterates that such information should be provided to him no later than April 15, 2022. To summarize this issue: 1. The Department is required to release confidential well file data within 90 days of the disposition of a lease; 2. The leases at issue were disposed of in the January 2021 ANWR sale; 3. The State collected payment for these lease sales from the successful bidders; 4. Despite such, the State has refused to release the requested well file data for over 10 months, despite having any legal basis to do so. Such decision is detrimental to Donkel, who is interested in potentially drilling a well in Tract 79, which is formally a part of the Alaska National Wildlife Refuge. The requested well file data is needed for Donkel to determine whether or not to move forward with drilling a well in Tract 79. Similarly, while pursuing these efforts, Donkel is also paying rental payments to the State of Alaska for 3,000 acres in the Alaska National Wildlife Refuge. As a result of the decision in 196 IBLA 155, an administrative law judge has ruled that only 1,500 acres are actually under the State’s jurisdiction. There is no question that Donkel has a vested interest in maximizing his investment in the 1,500 acres which remain in the State’s jurisdiction. Alaska Department of Natural Resources Alaska Oil and Gas Conservation Commission March 31, 2022 Page 3 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com Despite the fact that Donkel has made numerous requests for this information, including a formal letter which was sent on December 3, 2021, the State has not produced the requested well file data to Donkel. There is no question that Donkel has an interest in the requested information in terms of his future developmental interests, which serve the best interests of both the State of Alaska and its residents. In light of the foregoing, Donkel respectfully requests that DNR provide a copy of the requested well file data no later than April 15, 2022. If the State fails to do so, Donkel will take all necessary and appropriate action to protect his interest. Donkel looks forward to the Department’s response. If you have any questions regarding the foregoing, please contact the undersigned at wbankston@bgbalaska.com and sadler@bgbalaska.com or at (907) 276-1711. Very truly yours, BANKSTON GRONNING BRECHT P.C. /s/ William M. Bankston /s/ Suzanne A. Adler Enclosure cc: Client (w/encl.) D4127\12\LTRdnrAOGCC3-31-2022 wbankston@bgbalaska.com sadler@bgbalaska.com 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com William M. Bankston, Shareholder Christopher M. Brecht, Shareholder Chris D. Gronning, Shareholder Suzanne A. Adler, Associate Julius J. Brecht, Of Counsel Owen D. Shortell, Of Counsel Douglas A. Karet, Of Counsel* *Admitted in Colorado December 3, 2021 Corri A. Feige, Commissioner c/o Hugh Dowell Alaska Department of Natural Resources 550 West 7th Avenue, Suite 1400 Anchorage, Alaska 99501 Tom Stokes, Jessie Chmielowski, Dan Seamount & Jeremy Price c/o Thomas Ballentine Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, Alaska 99501 Re: Request for Well Log Data Our File No. D4127-12 Dear Commissioner Feige: The undersigned’s office represents Daniel Donkel and Donkel Oil (collectively, “Donkel”). Please direct all further correspondence regarding the undersigned directly to me. I am writing to you in your capacity as the Commissioner of the Department of Natural Resources to request a copy of well log data relating to Point Thompson, which the Department of Natural Resources has not yet made publicly available. Specifically, Donkel seeks the release of the data pertaining to the following wells: Sourdough #3 Sourdough #2 Alaska State G-2 Staines River State #1 North Staines River #1 You are aware that DNR treated the well data pertaining to the above listed wells (hereinafter “the requested wells”) as confidential since there had not been a sale of the leases pertaining to the requested well file data, which are located within Point Thompson and the western Alaska National Wildlife Refuge border. Such data has remained confidential for a period of over 24 months because unleased lands existed within the three-mile radius which surrounds each of the wells. EXHIBIT 1 Page 1 of 4 Alaska Department of Natural Resources Alaska Oil and Gas Conservation Commission December 3, 2021 Page 2 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com The confidentiality of this information is governed by AS 31.05.035(c) and 11 AAC 83.153(a), which provide, in relevant part: The reports and information required in [AS 31.05.035](a) of this section that relate to an exploratory or stratigraphic test well and those portions of an application for a permit to drill an exploratory or stratigraphic test well that the commission determines contain proprietary engineering or geotechnical information shall be kept confidential for 24 months following the 30-day filing period unless the owner of the well gives written permission to release the application and reports and information at an earlier date. If the commissioner of natural resources finds that the required reports and information contain significant information relating to the valuation of unleased land in the same vicinity, the commissioner shall keep the reports and information confidential for a reasonable time after the disposition of all affected unleased land, unless the owner of the well gives written permission to release the reports and information at an earlier date. Well surface and bottom hole locations, well depth, well status, production data, and production reports required by the commission to be filed subsequent to the 30-day filing period shall be considered public information and may not be classified confidential. Production data, as used in this subsection, means volume, gravity and gas-oil ratio of all production of oil or gas after the well begins regular production.1 . . . If the commissioner finds that reports or information required under AS 31.05.035 (a) contain significant information relating to the valuation of unleased land within a three-mile radius of the well from which these reports or information were obtained, the commissioner will, upon the written request of the owner of the well, keep the reports or information confidential for a reasonable time not to exceed 90 days after disposal of the unleased land, unless the owner of the well gives written permission to release the reports and information at an earlier date. The commissioner will, in his or her discretion, extend confidentiality to reports or information required under AS 31.05.035 from a well located more than three miles from any unleased land if the owner of the well from which these reports or information are derived makes a sufficient showing that the reports or information contain significant information relating to the valuation of unleased land beyond the three-mile radius.2 As you are aware, unleased land within a three-mile radius of the requested wells was made available in a January 2021 ANWR lease sale and the State held leases were previously offered for sale in earlier North Slope lease sales. All lease payments and bonuses related to the 2021 ANWR lease sale have been paid, and the leases have since been issued to the successful bidders. 1 AS 31.05.035(c). 2 11 AAC 83.153(a). EXHIBIT 1 Page 2 of 4 Alaska Department of Natural Resources Alaska Oil and Gas Conservation Commission December 3, 2021 Page 3 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com Since the unleased land within three miles of the requested wells has been made available for sale, there is no basis under AS 31.05.035 or 11 AAC 83.153(a) for the Department to fail to release the well log data within 90 days. Despite the fact that the lease sales occurred in January 2021, the Department has failed to release the requested well file data to date, despite the fact that more than 10 months have elapsed since the date of the January 2021 ANWR sale. It is Donkel’s position that the Department has no legal basis or factual basis to refuse to release the requested well file data in light of the foregoing. This letter constitutes a formal demand that the Department provide data regarding the following wells to Donkel by December 17, 2021: Sourdough #3 Sourdough #2 Alaska State G-2 Staines River State #1 North Staines River #1 Since the Department does not have a legal basis to refuse to produce the requested well file data to Donkel, Donkel does not believe that he has any requirement to demonstrate why such information is of interest to him. However, to the extent that such information is reasonably necessary to demonstrate standing to address this issue, Donkel maintains an interest in leases which abut the Point Thompson Unit. The Department is well aware that well file information pertaining to the requested leases is relevant to Donkel’s exploration of his leasehold interests. Donkel has previously requested this information, individually, from Tom Stokes, Director of the Division of Oil and Gas. Mr. Stokes refused to produce the requested well file data to Donkel because, “While it is correct that a lease sale occurred, it is unclear if the bids will be honored and the leases are determined to be valid. Until that issue is resolved, the well data will be treated as confidential information.” The leases have been sold. The payments to the State have been made. There is no provision of Alaska law which permits the Department to forego its legal obligations to produce the well file data no later than 90 days after the sale of the leases. 11 AAC 83.153(a) requires the Department to release the confidential data with “90 days after the disposal of the unleased land.” The administrative provision does not provide any caveat that such “disposal,” must be affirmed by the Courts. The subject wells, and the leases pertaining thereto, were clearly disposed of, via lease sale, as set forth in 11 AAC 03. 100. There is no suggestion that the Department would engage in a lease sale which is violative of federal law or otherwise illegal. Clearly, the Department must view the lease sale as valid, since it collected lease payments for the leases, and upon information and belief, has not refunded these amounts to the successful bidders. Since the lease sales have been concluded for over 90 days, the Department must release the confidential well data information to Donkel in accordance with its obligations under the respective provisions of the Alaska Statutes and the Alaska Administrative Code. EXHIBIT 1 Page 3 of 4 Alaska Department of Natural Resources Alaska Oil and Gas Conservation Commission December 3, 2021 Page 4 1127 West 7th Avenue, Suite 200 Anchorage, Alaska 99501 T 907.276.1711 F 907.279.5358 www.bgbalaska.com To summarize this issue: 1. The Department is required to release confidential well file data within 90 days of the disposition of a lease; 2. The leases at issue were disposed of in the January 2021 ANWR Sale; 3. The State collected payment for these lease sales from the successful bidders; 4. Despite such, the State has refused to release the requested well file data for over 10 months, despite having any legal basis to do so. Such decision is detrimental to Donkel, who is interested in potentially drilling a well in Tract 79, which is formally a part of the Alaska National Wildlife Refuge. The requested well file data is needed for Donkel to determine whether or not to move forward with drilling a well in Tract 79. Similarly, while pursuing these efforts, Donkel is also paying rental payments the State of Alaska for 3,000 acres in the Alaska National Wildlife Refuge. As a result of the decision in 196 IBLA 155, an administrative law judge has ruled that only 1,500 acres are actually under the State’s jurisdiction. There is no question that Donkel has a vested interest in maximizing his investment in the 1,500 acres which remain in the State’s jurisdiction. In light of such, and the time needed to prepare to mobilize the necessary equipment and crew needed to drill a well in Tract 79, Donkel respectfully requests a response within two weeks of the date of this letter. Donkel looks forward to the Department’s response. If you have any questions regarding the foregoing, please contact the undersigned at wbankston@bgbalaska.com, sadler@bgbalaska.com , or at (907) 276-1711. Very truly yours, BANKSTON GRONNING BRECHT P.C. /s/ William M. Bankston /s/ Suzanne A. Adler cc: Client D4127\12\LTRdnrAOGCC 12-3-21 EXHIBIT 1 Page 4 of 4 From:Roby, David S (OGC) To:Michael Schoetz Subject:RE: [EXTERNAL] PTU Operatorship Date:Monday, December 6, 2021 4:07:00 PM I thought I answered the ADL issue already, but if not yes you can just list the ADL numbers instead of having to do full legal descriptions. The exception to this would be if there’s any leases where there will be split operatorship, in which case you’ll have to provide the legal description for how the operatorship of that lease is split. I think this will apply to the lease the Sourdough 3 well is on. I can’t remember if Hilcorp NS was designated operator for just the well itself or if the designation was for all or part of the lease that the well was drilled on. So depending on how the designation of Sourdough 3 was done you could say something like: ADL0343112, except for the Sourdough 3 well which is operated by Hilcorp North Slope, LLC. Or ADL0343112, except for [legal description of the portion of ADL0343112 that Hilcorp NS will remain operator of] which is operated by Hilcorp North Slope, LLC. Does that make sense? And yes, two forms one for EMAP designating HAK and the other for HNS designating HAK is what we need. Regards, Dave Roby (907)793-1232 From: Michael Schoetz <mschoetz@hilcorp.com> Sent: Monday, December 6, 2021 3:42 PM To: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: RE: [EXTERNAL] PTU Operatorship Dave, Hilcorp North Slope will retain operatorship of the Sourdough 3 Well. Have you received any word on whether we can describe the affected lands by ADL number or need to do full legal description? I believe that is the last issue before I am able to complete the forms and obtain signature. It is my intent to submit two forms – one from EMAP to HAK and the other from HNS to HAK. If there is anything else that I can provide you please let me know. Feel free to give me a call if you would prefer. Thank you, Michael W. Schoetz, CPL Hilcorp Alaska, LLC Senior Landman Main: (907) 777-8300 Office: (907) 777-8414 Mobile: (281) 685-0902 Email: mschoetz@hilcorp.com 3800 Centerpoint Dr., Suite 1400 | Anchorage, Alaska 99503 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Monday, December 6, 2021 3:05 PM To: Michael Schoetz <mschoetz@hilcorp.com> Subject: RE: [EXTERNAL] PTU Operatorship Hi Michael, One more question, Hilcorp NS is the designated operator of the Sourdough 3 well in the PTU, is this well going to remain “separate” from the rest of the PTU and keep Hilcorp NS as the operator or will it become a Hilcorp Alaska operated well? Thank you, Dave Roby (907)793-1232 From: Roby, David S (OGC) Sent: Monday, December 6, 2021 10:28 AM To: Michael Schoetz <mschoetz@hilcorp.com> Subject: RE: [EXTERNAL] PTU Operatorship Hi Michael, We’ve reviewed the info you provided and decide we don’t need designation of operator forms from all the WIOs. We will need designation of operator forms from both ExxonMobil and Hilcorp NS designating Hilcorp Alaska to be the operator, so that our records match the ballot vote. Regards, Dave Roby (907)793-1232 From: Michael Schoetz <mschoetz@hilcorp.com> Sent: Thursday, December 2, 2021 3:38 PM To: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: RE: [EXTERNAL] PTU Operatorship Dave, Hilcorp Alaska, LLC will be the Operator of PTU effective January 1, 2022. Per our phone conversation, attached, please find a letter delivered to the DNR by ExxonMobil Alaska Production Inc., Hilcorp North Slope, LLC, and Hilcorp Alaska, LLC stating that the requisite working interest owners elected to change the Operator of the PTU to Hilcorp Alaska, LLC. The second and third attachments to this email include the referenced language in the Unit Agreement and Unit Operating Agreement. Might this satisfy any documentation requirement AOGCC may have? Happy to discuss further as needed. Thank you, Michael W. Schoetz, CPL Hilcorp Alaska, LLC Senior Landman Main: (907) 777-8300 Office: (907) 777-8414 Mobile: (281) 685-0902 Email: mschoetz@hilcorp.com 3800 Centerpoint Dr., Suite 1400 | Anchorage, Alaska 99503 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Thursday, December 2, 2021 2:16 PM To: Michael Schoetz <mschoetz@hilcorp.com> Subject: [EXTERNAL] PTU Operatorship Hi Michael, In regards to the legal description issue just a listing of the leases is fine, if there’s any lease where you’re not going to operate the entire lease you’ll need to describe the area you are going to operate. Still working on whether or not you’ll need all WIOs to fill out the designation of operator form. I have a quick question for you, is Hilcorp NS or Hilcorp Alaska going to be the operator? Regards, Dave Roby Senior Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. From:Roby, David S (OGC) To:Michael Schoetz Subject:RE: [EXTERNAL] PTU Operatorship Date:Monday, December 6, 2021 3:04:00 PM Hi Michael, One more question, Hilcorp NS is the designated operator of the Sourdough 3 well in the PTU, is this well going to remain “separate” from the rest of the PTU and keep Hilcorp NS as the operator or will it become a Hilcorp Alaska operated well? Thank you, Dave Roby (907)793-1232 From: Roby, David S (OGC) Sent: Monday, December 6, 2021 10:28 AM To: Michael Schoetz <mschoetz@hilcorp.com> Subject: RE: [EXTERNAL] PTU Operatorship Hi Michael, We’ve reviewed the info you provided and decide we don’t need designation of operator forms from all the WIOs. We will need designation of operator forms from both ExxonMobil and Hilcorp NS designating Hilcorp Alaska to be the operator, so that our records match the ballot vote. Regards, Dave Roby (907)793-1232 From: Michael Schoetz <mschoetz@hilcorp.com> Sent: Thursday, December 2, 2021 3:38 PM To: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: RE: [EXTERNAL] PTU Operatorship Dave, Hilcorp Alaska, LLC will be the Operator of PTU effective January 1, 2022. Per our phone conversation, attached, please find a letter delivered to the DNR by ExxonMobil Alaska Production Inc., Hilcorp North Slope, LLC, and Hilcorp Alaska, LLC stating that the requisite working interest owners elected to change the Operator of the PTU to Hilcorp Alaska, LLC. The second and third attachments to this email include the referenced language in the Unit Agreement and Unit Operating Agreement. Might this satisfy any documentation requirement AOGCC may have? Happy to discuss further as needed. Thank you, Michael W. Schoetz, CPL Hilcorp Alaska, LLC Senior Landman Main: (907) 777-8300 Office: (907) 777-8414 Mobile: (281) 685-0902 Email: mschoetz@hilcorp.com 3800 Centerpoint Dr., Suite 1400 | Anchorage, Alaska 99503 From: Roby, David S (OGC) <dave.roby@alaska.gov> Sent: Thursday, December 2, 2021 2:16 PM To: Michael Schoetz <mschoetz@hilcorp.com> Subject: [EXTERNAL] PTU Operatorship Hi Michael, In regards to the legal description issue just a listing of the leases is fine, if there’s any lease where you’re not going to operate the entire lease you’ll need to describe the area you are going to operate. Still working on whether or not you’ll need all WIOs to fill out the designation of operator form. I have a quick question for you, is Hilcorp NS or Hilcorp Alaska going to be the operator? Regards, Dave Roby Senior Reservoir Engineer Alaska Oil and Gas Conservation Commission (907)793-1232 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. From:Roby, David S (OGC) To:Abhijeet Tambe Subject:RE: Sourdough 3 Suspension renewal Date:Thursday, March 11, 2021 4:50:00 PM Sorry for the confusion, the suspension renewal is for the full 10 years. Should Jade pull out of the farmout agreement, and thus maintaining Sourdough 3 for their potential use was no longer a concern, before the 10-year extension expires we’d likely push for you to P&A the well since the basis for approving the extension would no longer apply. But so long as there’s still a viable potential future use for the well, and there’s no indication that the well’s integrity has been compromised, it can be maintained in suspended status. Regards, Dave Roby 907-793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at 907-793-1232 or dave.roby@alaska.gov. From: Abhijeet Tambe <Abhijeet.Tambe@hilcorp.com> Sent: Thursday, March 11, 2021 4:40 PM To: Roby, David S (CED) <dave.roby@alaska.gov> Subject: Sourdough 3 Suspension renewal Hello Dave, We received the Sundry approval for Sourdough 3 suspension renewal yesterday. In the documents package we received, I noticed that you were recommending a suspension extension until June 30, 2023. Approved 10-403 does not refer to duration of the extension. Can you please let me know how long this renewal is valid till? Thank you! Abhijeet Tambe | Sr. Operations Engineer |Hilcorp Alaska, LLCO: (907) 777-8485 | C: (907)331-9184 | Abhijeet.Tambe@hilcorp.com3800 Centerpoint Drive, Suite 1400 | Anchorage, AK 99503 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are herebynotified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, pleaseimmediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. 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That matches our records. Abbie From: Roby, David S (CED) [mailto:dave.roby@alaska.gov] Sent: Monday, September 14, 2020 10:07 AM To: Abbie Barker <Abbie.Barker@hilcorp.com>; Oliver Sternicki <Oliver.Sternicki@hilcorp.com> Cc: Colombie, Jody J (CED) <jody.colombie@alaska.gov>; Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov> Subject: RE: [EXTERNAL] RE: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Hi Abbie, Our records indicate that the last 404 submitted for this well was indeed for a suspended well inspection. Additionally, the suspension was last renewed on January 5, 2011, so it’s due for renewal in about three an a half months. Regards, Dave Roby 907-793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at 907-793-1232 or dave.roby@alaska.gov. From: Abbie Barker <Abbie.Barker@hilcorp.com> Sent: Thursday, September 10, 2020 4:27 PM To: Roby, David S (CED) <dave.roby@alaska.gov>; Oliver Sternicki <Oliver.Sternicki@hilcorp.com> Cc: Colombie, Jody J (CED) <jody.colombie@alaska.gov>; Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov> Subject: RE: [EXTERNAL] RE: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Dave, Thank you to you and the team for the help and this information. We will be in touch per your guidance if accessing the documents is deemed essential. Abbie Abbie Barker Regulatory Tech, Prudhoe Bay West Team Hilcorp Alaska Email: Abbie.Barker@hilcorp.com Cell: (907)351-2459 From: Roby, David S (CED) [mailto:dave.roby@alaska.gov] Sent: Thursday, September 10, 2020 3:54 PM To: Abbie Barker <Abbie.Barker@hilcorp.com>; Oliver Sternicki <Oliver.Sternicki@hilcorp.com> Cc: Colombie, Jody J (CED) <jody.colombie@alaska.gov>; Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov> Subject: [EXTERNAL] RE: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Abbie, The Sourdough 3 well is a well that was granted indefinite confidentiality by the Department of Natural Resources. We do not maintain electronic well files, neither on our website nor for AOGCC in house use, for these wells and we do not provide records from these types of wells to anyone, even the well’s operator. We can let representatives of the operator come to our offices to review the records on these types of wells. Notes can be taken, but we do not allow copies/scans/photos/etc… of the records to be made. A formal written request will have to come from someone pretty high up at Hilcorp North Slope (or did the Sourdough well go to Hilcorp Alaska?) and the request will have to specify exactly what records (which well? Well file and/or logs and/or other types of analyses/tests?) you want to review and designate specific people that are authorized to review those records. We’ll then arrange a date and time for Hilcorp’s designated representative(s) to come to our offices to review the records. An AOGCC staff member will verify the identities of the Hilcorp personnel to ensure they were among the list designated by Hilcorp and log them in. We’ll then take the Hilcorp personnel to a conference room in the secure portion of our building where access to the records will be provided. An AOGCC staff member will be present for the entire time the Hilcorp staff are reviewing the records. Let me know if you have any questions on this matter. Regards, Dave Roby Sr. Reservoir Engineer Alaska Oil and Gas Conservation Commission 907-793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at 907-793-1232 or dave.roby@alaska.gov. From: Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov> Sent: Thursday, September 10, 2020 2:46 PM To: Roby, David S (CED) <dave.roby@alaska.gov>; Davies, Stephen F (CED) <steve.davies@alaska.gov> Cc: Colombie, Jody J (CED) <jody.colombie@alaska.gov> Subject: FW: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Here is the request. It originally came to Jody but once I looked up the well, I realized it was extended confidential and we obviously do not have those records digital. From: Colombie, Jody J (CED) <jody.colombie@alaska.gov> Sent: Thursday, September 10, 2020 9:48 AM To: Carlisle, Samantha J (CED) <samantha.carlisle@alaska.gov> Subject: FW: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Please help her. From: Abbie Barker <Abbie.Barker@hilcorp.com> Sent: Thursday, September 10, 2020 9:40 AM To: Colombie, Jody J (CED) <jody.colombie@alaska.gov> Cc: Oliver Sternicki <Oliver.Sternicki@hilcorp.com> Subject: Document Request: 10-404 for Sourdough 3 (PTD# 196-080) Good Morning Jody, I hoped you could help me locate a copy (including any attachments) of the most recent 10-404 that was submitted for well Sourdough 3 (PTD#196-008). I believe it was for a Suspended Well Inspection. I cannot locate it on the AOGCC website, which I believe is due to the exploratory nature of the well. Thank you for your assistance, Abbie Abbie Barker Regulatory Tech, Prudhoe Bay West Team Hilcorp Alaska Email: Abbie.Barker@hilcorp.com Cell: (907)351-2459 The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the OZOZ 'TZ jaqwajdaS 'AepuoN -jemauaj uoisuadsns SUlAoidde jo uoil!puoD aq pinoqs'.# aid Ou # IdV Ou paildde ja>pils ql!m u@A@ 1:)@JJODUI si aweu jolejado - pa:)eld@j aq isnw uSis ll@/v\ SjUaWWOD )0S1AJ;)dnS soloqd j!wqns of AoleA@do -uoipadsui juanbasqns lxau Aq 080096T (lid @ql Suipnpul 'Usis dio:)I!H lv\,?u e papuawwoD@A I -I1 uo uall!jiv\ sem jaqwnu (lid 'dq @ql J@A0 ja>l:)ijs djoDpH e Ind sling ueijq /000 ApuV -dad djo:)j!H uoll!puoD P009 ooq!puoD a�e,Ipns SuipunwjnS peq jou inq Suijeal/Buiddu jeaq awos-uoq!pu0:) Jlej U1 1111S 23U1J@A0:) Jella:) 'jaAeJ0 'J@IeM Ue@l:) alliq e jsnf 'pooE) jo uolj!puc,) 'U01I1PU00 P009 '@aJI @10H AJO U01I1PU0:) Pe@qll@N\ F] �pajjejsuj (s)Sn1d UA :vo El zPDjlelsul Adg 0 :V1 - F^1 tjejjaD ui p!nlj :Ouiqni (!sd) sainss@Jd IPAA 11 &Aoqsjjo 9N01 / iV] �MOH 'PaIPOA J1 F-1 O@Nel S0104d [?� 0DIP-19A U011e:)01 tJ!EAV weApi(j ajoqllz)M 966T/VZ/V :Ole(] UOISLI@dsnS 220 APUV :dad jolejado lAodad uoilaidwOD :p?,-.ajddV uoisuadsr)S .:)Ul (elselv) uoilejoldx3 d9 :jolejado 080096T :jaqwnN I!wAad OZOZ/6T/8 :0-31j!TON DDE)OV aleCl E HE)noadnos :DweN 11OM lu@nbasqnS :ucipadsul jo adA_L Nei wepV :jol:)@dsul OZOZ/9/6 :papadsul ale(] 60VVOT80600Z3)Vsns :ONI)@dsul jjod@NdM@1A@Euon,)@dsuj jj@AA p@puadsnS Alu0 leui6up1!wgnS 9 100 avil8E! 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PO Box 196612 Anchorage AK 99519-6612 Re: Request for Verification of Suspended, Shut -In and Observation Well Information Dear Mr. Engel: This letter supersedes our correspondence of January 28, 2009. Enclosed are lists of suspended, long term shut-in and observation wells operated by BP Exploration Alaska Inc. and BP Alaska Inc. For each list, please verify the information for each well, and provide any corrections by April 1, 2009. Location inspections required under 20 AAC 25.110 should be coordinated with Jim Regg at 907-793-1236 or jim.regg@alaska.gov. If you have any questions regarding this notice, please contact Tom Maunder at 907-793- 1250 or tom.maunder@alaska.gov. Sincerely, Cathy . Foerster Commissioner Enclosures J ServiceTrn U.S. Postal '' CERTIFIED MAIL RECEIPT Coverage Provided) -. (Domestic Mail Only; No insurance fu AW�'1 PTE fait 995t9-6612 . W m Postage $ $0.59 QCertified Fee $2.70 0 p Return Reaept Fee (Endorsement Required) $2.20 Q a(Endorsement Restricted Delivery Fee Required) $0.04 A�Afh4 �L9 O O� �i ?� , m l Total Postage s Fees $ $5.49 01/29/2009 O Sent To ED------- --- ---------------------- �` S§ i f, Apt. No.; or Bo PO x No. ---------------------- --- Gty, State. ZIP+4 • Complete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. rt Print your name and address on the reverse so that we can return the card to you. I[ Attach this card to the back of the mailpiece, or on the front if space permits. 1. Article Addressed to: /-/IOQ rr y ,gpx/l� /00 A. Signatu Agent X 0 Addre B. Re eiv by ( Printed ame) C. Date of De( D. Is delivery a dress diff ent from item 1? If YES, enter delivery address below: 0 No 3. Se ce Type 'Cert'ified Mail ❑ Express Mail ❑ Registered 421peturn Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. 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OIL AND GAS 333 W 7th AVENUE, SUITE 100 vO`SERVACnIION 4OMMSSIOIV ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279.1433 January 28, 2009 FAX (907) 276-7 54 2 CERTIFIED MAIL RETURN RECEIPT REQUESTED 7005 1820 0001. 2499 5951, Harry Engel BP Exploration Alaska Inc. PO Box 196612 Anchorage AK 99519-6612 Re: Notice of Revised Suspended Wells Regulations and Request for Verification of Suspended and Shut -In Well Information Dear Mr. Engel: Enclosed are the Alaska Oil and Gas Conservation Commission's revised regulations regarding suspended wells (i.e., 20 AAC 25.110). Also enclosed are a list of suspended wells and a list of long term shut-in wells operated by BP Exploration Alaska Inc. For each list, please verify the information for each well, and provide any corrections by April 1, 2009. Location inspections required under 20 AAC 25.110 should be coordinated with Jim Regg at 907-793-1236 or jim.regg@alaska.gov. If you have any questions regarding this notice, please contact Tom Maunder at 907-793- 1250 or tom.maunder@alaska.gov. Sincerely, Cathy P. oerster Commissioner Enclosures .r • Complete items 1, 2, and 3. Also complete A. Sign.. Ire item 4 if Restricted Delivery is desired. - - Age * Print your name and address on the reverse /� ❑ Adc so that we can return the card to you. B. R eived b ame) C. pate of I Attach this card to the back of the mailpiece, (/ or on the front if space permits. 0. Is delivery address different from item 1 ? ❑ Yes 1. Article Addressed to: If YES, enter delivery address below: ❑ No Harry Engel BP Exploration Alaska Inc. PO Box 196612 Anchorage AK 99519-6612 rvice Type Certified Mail ❑ Express Mail ❑ Registered -9�Retum Receipt for Merchandise ❑ Insured Mail ❑ C.O.D. 4. Restricted Delivery? (Extra Fee) ❑ Yes 2. Article Number (Transfer from service label) 7 0 0 5 1820 0 0 01 2499 5951 PS Form 3811, February 2004 Domestic Return Receipt 102595-02-M-1540 a ;U.S. Postal Service, 'CERTIFIED MAIL,.. RECEIPT kDomestic Afall only, No Insurance Coverage Provided) our website at w.usps.com vmt For delivery intormation visit or o Harry Engel a ►,- %Avg;"� BP Exploration Alaska Inc. $°""¢ PO Box 196612 py"�e, DAi Anchorage AK 99519-6612 V U z Z z L O M N N IT f- M v r rl- m CO N 0 (D M m 0 h 0 O (D N M M Cl) M a)m to v V' M N N N N V' Nt M O OJ I7 �T V � to m � r r- V T V Co M (D (D 00 V• N t` N r- fl fl- LO (n )n )n N fl- r- t` r r V' V' '7 h N N N - N V r V M N M M V N n CM M O O O M O O O M Cl) O O O O O O O M O O Cl) O O O O O O O O O O O O O O O O O O O O O O J J Q O J J -j J 0 0 0 0 J J 0 0 J 0 J 0 J 0 J J J J J 0 0 0 0 0 J J 0 0 J J 0 0 J J 0 0 d d d d d d d d d d d d d d d d d d d d d d w w w W w W W W w w LLJ W W w w W W W W w w w (D O O O O O M 2 M N )n (n � an Ne- r •! � �- t2 � r- �-r- a Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z O N M M M N M M M M M N N 7 7 N N N N N F- F- F- F- F- F- F- F- F- F- F- F- F- F- F- F- F< F- F- a0 O O O 00 M M m O N v (0 W 0 O m M r- Cl)M M r- N N N M M M N U U U U U U U U U U U U U U U U U U U U U U 0) ( N N 0 N 0 0 0 (U 0) U) V) U) U) Cl) U) CO U) U) co CO U) U) N V) V) U) U) V) N U) U) J J J J J J .J J J J J J J J> J w W J J W w J J w w J J w W LL! 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P. I. Supervisor` r 1� FROM: Lou Grimaldi, SUBJECT: Suspension plugs Petroleum Inspector " BPX well Sourdough #3 Exploratory PTD #96-008 Friday, April 19, 1996: 1 traveled to BPX exploratory well Sourdough #3 to verify placement of the cement plugs in preparation of suspending this well. On Thursday the rig had a problem with the cement job for the isolation of the perforations from the wellbore. According to Nick Scales (BPX rep.) a EZ drill squeeze packer had been placed in the 7" casing above the existing permanent production packer. The drilling fluids and produced DST oil had been injected, then a cement squeeze was performed to seal the perforations. The rig then laid a 200' cement plug on the top of the squeeze packer and circulated out the drillpipe. The rig had pulled approximately 19 stands and became stuck. A free point backoff was performed which resulted in 1799 feet of drillpipe and tools being left in the hole. I arrived on location at this point. A 2500 psi pressure test of the 7" was performed and verified the integrity of the plug at the perforations. A second 7" EZ drill packer was run on E-Line and set at 7774' (E-Line meas.). This was approximately 5' off the top of the fish. I witnessed a good set of this packer. The rig then ran back in and tagged the top of the packer and stacked 1 OK down. A batch of class G equivalent to 200' was laid on top of the packer with samples taken of the lead and tail. Saturday, April 20,1996: The cement samples had set up quite nicely and a 26 bbl Cement squeeze (equivalent to 1016') was performed on the 7" X 9 5/8" annulus and was allowed to cure. During this time the rig pulled out of the hole and did not fill the last 10 stands as to allow the hole to be dry at the top packer setting depth. This was done so the top cement job could be poured from the surface saving on fluids that would be have to be hauled back to Prudhoe bay. The top EZ drill packer was set this evening with 3 K stacked down on it. Sunday, April 21,1996: We attempted a pressure test this morning of the 7" X 9 5/8" annulus. The pressure on the annulus had been left at the final squeeze pressure of 1600 psi and when we opened the annulus valve I observed 2000 psi on the annulus. The annulus pressure was raised to 2200 psi and slowly bled down to the beginning pressure. This was repeated three times with the same results. I requested that the annulus pressure be bled to 1500 psi. This was done and the annulus pressure slowly rose to 2000 psi. This indicated to me a possible leak at the casing shoe with some drive behind it. The rig started mixing mud and a 70 barrel batch of cement to squeeze in the annulus. I had business in Prudhoe so I left location and flew back to Deadhorse planning to return tomorrow for the pressure test. Monday, April 22, 1996: This morning as we were preparing to fly back out to Sourdough #3, the weather turned bad which precluded my witnessing this test. I allowed for the Company rep. and cementer to make this test and report the results to me. The annulus was tested to 2500 psi for 30 minutes with no decrease in pressure. The annulus pressure was then dropped to 1500 psi and again observed for 30 minutes with no increase in pressure. The EZ drill in the 7" at 200' was capped with 6 barrels of Permafrost cement and the dry hole tree was nippled up. SUMMARY: I witnessed the plugs placed in BPX exploratory well Sourdough #3 in preparation for suspending this well. 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