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Home My WebLink AboutCO 016Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plotter/scanner) [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: ~ARIA Scanning Preparation BY: ~ MARIA DATE: .. Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: / / PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: _~._. YES __ NO BY: Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: __ YES __ NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS ALASKA OIL AND GAS CONSERVATION COMMITTEE 800 L Street Anchorage, Alaska RE: THE APPLICATION OF UNION OIL COMPANY ) OF CALIFORNIA, operator of the Kenai Gas ) Field, for an exception to Section 2061.2, ) pursuant to Section 2012 and 2061.3 of the ) Alaska Oil and Gas Conservation Regulations,) Title 11~ AAC. ) Conservation Order No. 16 April 21, 1965 IT APPEARING THAT: 1. The Union Oil Company of California, as operator of the Kenai Gas Field, submitted a request, dated April 8, 1965, for an exception to Section 2061.2 of the Alaska Oil and Gas Conservation Regulations, Title 11, AAC. 2. Notice of hearing on the petition was published in both Anchorage news- papers on April 9, 1965~ pursuant to Section 2012 of the Alaska Oil and Gas Conservation Regulations~ Title 11, AAC. No protest was filed and conse- quently no hearing was held. 3. Ail undersigned members of the Committee have been furnished copies of the application and exhibits. AND IT FURTHER APPEARING that after due consideration an exception to Section 2061.2 of the Alaska Oil and Gas Conservation Regulations permitting the Kenai Gas Field wells to be spaced on a 320 acre pattern rather than a 640 acre pattern should be granted on the grounds of the technical evidence sub- mitted. NOW~~' THEREFORE, 'IT IS ORDERED that gas wells may be drilled to the Kenai Gas zone within the limits of the Kenai Unit on a spacing pattern of 320 acres per gas well. This order is made pursuant to Section 2061.3 of the Alaska Oil and Gas Conservation Regulations and shall continue in force for a period of not more than eighteen (18) mohths, at the expiration of which time a hearing may be held at which Union Oil Company of California may be required to present such evidence to determine the proper spacing for Kenai Gas zone. 1965. DONE at Anchorage, Alaska, and dated this 21st day of April~ Thomas R. Marshall, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee with the concurrence of: ~iams, Chairman ska Oil and Gas Conservation Committee Charles F. Herbert, Deputy Commissioner Department of Natural Resources K~[f L. Von'~'erAh'e', ~et'r'0~'eum Enginee.r '' Division of Mines and Minerals Attest: kathryn ~ vat,z, secret~ry REQUEST FOR EXCEPTION TO SECTION 2061.2 OF THE OIL AND GAS CONSERVATION REGULATIONS TITLE II, DIVISION 2 CHAPTER 2, SUBCHAPTER 2 KENAI GAS FIELD WELL SPACING KENA~. GAS FIELD INTRODUCTION This report presents data to substantiate the request for changing the well spacing within the Kenai Gas Field from 640 acres per well to a minimum of 320 acres per well. The first well in the field was completed October 11, 1959. Since that time, five additional wells have been drilled, spaced at no less than one well per 640 acres. Demand for gas to repressure the Swanson River O11 Field necessitates additional development of the Kenai field. The closer well spacing will increase both de- liverability from the field and its ultimate production by maximizing the recovery of gas in lenticular sands~. Unfavorable surface conditions in the field area, with resultant high road construction costs, dictate development of the field from drill- ing "islands". The combination of a directional drilling program from these islands and the shallow depth of the zone makes it impractical to comply with the statutory 640-acre spacing pattern. GENE~ The productive interval in the field is the Kenai Gas Zone of the Upper Kenai Forma- tion of Tertiary age. The gas sands are fine- to medium-grained, contain varying amounts of interstitial clay and are loosely consolidated. Reservoir characteristics of the sands are good, averaging 15-35% porosity and 350 to 3000 md permeability. Associated coals and carbonaceous shales suggest a nonmarine lacustrine, paludal and fluvial environment of deposition. Lack of marine fauna corroborates this assumption. Sands deposited under these environmental conditions are characteris- tically lenticular. Correlations within the Kenai Gas Zone are fair to good, and indicate significant stratigraphic variations of the sands within the zone. (Exhibit A) STRATIGRAPHIC VARIATIONS Exhibit A is a stratigraphic section from KU 933-30 on the north to KU 914-6 on the south. This section is included to demonstrate the lentlcular nature of productive sands within the Kenai Gas Zone. The depicted loss of sands is due to pinchout, shaling out, or possibly by channeling and fill of younger impervious beds. A closer well spacing will minimize the amount of gas left in the updip edges of lenttcular sands. WELL SPACING - KENAI GAS FIELD DEVELOPMENT ECONOMICS The major portion of the Kenai Gas Field is covered by swampy terrain· The exces- sively high cost of road construction and maintenance dictate the drilling of directional wells from "island" locations. Island drilling, although neces sitating more costly directed wells, greatly reduces road, location, pipeline, production facilities and maintenance costs to more than offset additional drilling expense· The depth to the reservoir is critical to the spacing pattern in field development by directed well island drilling. Since the reservoir in the Kenai Gas Field is shallow, lying between 3100 and 4700 feet on the crest of the structure, a wide 640-acre spacing pattern would require such high angle directional wells as to make the development program mechanically difficult and economically impractical. ~ONCLU. SIONS The following factors indicate the need for closer well spacing in the Kenai Gas Field: i · The lenticularity of the sands within the Kenai Gas Zone limits the ultimate recovery of gas at 640-acre spacing. Closer spacing will therefore increase the total production from the field. · The high cost of conventional development under the existing surface conditions demands an island-type drilling program· A directional program at 640-acre spacing is not practical for this field because of the shallowness of the reservoir. _RECO M M,E.,N. DA~,!ON~ The well spacing pattern for the Kenai Gas Field should be reduced from 640 to 320 acres per well where justified by reservoir development. EHE:nnb E. H. East Geologist GAS FIELD In order to exercise sound engineering practice and conse~vation measures, the applicant requests an exception to the S~a~e spactnS regulations to permit the multiple completion of wells or of wells from the same or near location different groups of sands in the Kenai Cas field. This is in lieu of produc- ing all of the Sas sands in each well at the present required 640 acres The Kena~ Gas Field contains numerous gas stringers varying in depth ~rom 3~100'~ a~ the top~ of ~he structure to ~000' near ~he periphery. These are sub- divided in~o various sroups of sas producim~ .sands desi~a~ed~ from the 2op down~. as follows: A-I, 2~ 6, 5 B-1 & 2 B-3 & 4 ~ne of ~he existing wel~e ie c~p~e~e~ ~n more ~han one o~ ~he above For allocation of product~on~ all o~ the above des~g~ted sands are g~uped ~nto one ~r~ic~pa~n~ area, Under Zhese cond~2~ons and ex~s~in~ ~u~a2~s~ each well ~ be produced fr~ all ~ such sands s~l~aneous~y. ~s would 'no~ be accordance wi~h ~ood ens~neer~n~ or ~ conse~a~ton prac~ices ~as. such a ~licy wou~d resul~ ~n the follow~n~ consequencest. I. ~p~d depletion of the lower sands because off ~as loss ~o hisher~ low pressure sands and rap~d wa~er encroac~n~ in~o ~he well bore because off the h~er hydros~a~ic pressure of ~he lower sands. 2. ~ly wa~er encrgac~en~ [~ ~he 'less ex~ensive Sas sands. ~. Con~'rol off ~ncroachin~ wa~er is ve~ difficul~ and cos~ly ~en all s~ds are open to produc~i~n ~n ~he s~e we~l bore, Applicant proposes to drill additional wells at or near others to permLt produc~ion Ermm each of these sand groups separately; no one of which Will be completed on less than 320 acre spactn8 relative to the sand groups to be duced in that well, Similar consideration will apply to any dual comple~ion two sand groups in one well. This is not only for the purpose of exercisin~ sound conservation practices as explained above but would be more economical, By d~ree~ional drilling and dual comp[et~ons the cost would be reduced mater~.a[ly by reducing road construc- ~ion and well ~LIBm foundations in ~his swampy area. AFFII VIT OF PUBLI v TION ;TATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that.~.~-e- ........ is the~..z'.~..c.~.-~.-a.?'-.---C...Z--e--z'- ]~f the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and'during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true as it was published in regular issues (and not in supplemental form) of said newspaper for a period of ..................insertions, commencing on the .._~_ ...... day of ..A..R.z'..'.:'..]: ............. ,19~..~.i..., and' ending on the ........ ? ......... day of of A~z'.$.;L .................... ,19.~5..., both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa.id period. That the full amount of the fee charged for the foregoing publication is the sum of $..~_...~.0.. ....... which amount has been paid in full at. the rate~.,of $1.50 per square. Minim./m):harge $7.50. One in- sertigt~Je'gaJ~, $2.0,89,per square. Sub ~ribed/'~nd sworn to b~fore me this. .9.'_//... day of..A.~.z'..'.z.f. ...... ,./' 1~.. ...... .~ , - ,- ~,., ~' , ~ /" Notary Public in and for the State of Alaska, Third Division, Anchorage, Alaska MY COMMISSION EXPIRES 'S~AT~ O~ ALA DEPAR~TT 0F DMSION 0~ OR, AN:D , Notice ion~ off ~e~u'es~ed. the Cons~at~ order ~ .ced~res de~ribed ~- 1i,: Section te~orary field s~ac~n~':'~ttern m ~?.Eenai Gas Fi~..a~9 .acres .pe.~.:~'as well. The r~ue~t~d order 'W0~d:tempora~ily ex~t;.~he field ~'..the s~ctn~ re~uMe~enta of ~.. Title. 1t., Section.~,~l.2.. ~he t~po~ary ~der,' fi:' ~il6~d, .Would ~onti~ue in .~orce. ~ a~'Pe~$~d of not' more than . 15 mba[hs,,~ after whibh ~ a he.a~ng sha~' ~e. held at which ...th~e the Co~ittea side? such evidernce as Will enable trite deterge the pe~e~t. ~ld the .requested ..t.empo~y-=~:~rder is issued, are. allowed. date: '~f',,t~ts "~te,~ t= ,, ~hteh II to..:?,;flle,' a ..prO~e~. hea~ing.:. PlaCe ':~6r fice, '8~' L. SWeet, Anch. o~ag% Al~s. lCa', a ~o~est is timely ~ t~led, "a0: heatt~: 0n: the ,~ma,t*~F; ';el]l~ be II 'Iai. the Z..' j[ 'l.c,'..~ae I.:br;.:':., 5th] and F,. A~h~age./.::Alas~,.,?, ~t 9~30 ants and others, l~a~ '.be no s~ Protest. tS.,:timeiy' filed~: the{ 'Committee w[~' suanee ~ the temp(m.~y., order wlth. o~ a h.e~n~. '.'..L.......'~: ~.: ~..', ,, , ,, ~,,, , , ~ , :. , ,, Anchorage DailY': Union 2805 DENALI CLIFFORD W. DUNHAM DISTRICT MANAGER OF PRODUCTION ALASKA Oil Company of California S T R E E T ..~.., ANCHORAGE. ALASKA 99503 DIAMOND ANN IV'E R,~AR¥ April 9, 1965 State of Alaska Department of Natural Resources Alaska Oil and Gas Conservation Committee 800 L Street Anchorage, Alaska Gentlemen: The drilling of 6 Kenai gas wells is planned for the summer of 1965. Since there are several individual sands in the reservoir, it is proposed they be subdivided into 6 producing modules consisting of enough sand thickness to provide each completion with an optimum producing capacity commensurate with existing equipment and controls. This concept will also permit selectivity of productive horizons maximizing conservation of reservoir energy by producing the shallow lower pressure sands into the low pressure Alaska Pipeline gathering system and the deep higher pressure sands into the high pressure Swanson River Field gathering system. Dual completions are proposed with each well producing from two modules. It should be noted that the implementation of this plan of development will provide for the possibility of two or more wells being drilled to essentially the same bottom hole location, but being produced from alternate modules such that the proposed 320 acre spacing pattern will not be violated. The production modules have been numbered 1 through 6 and are composed of the following sands: M, ODULE ~ SANDS 1 Al, A2, A5 2 A6, A7, A8 3 A9, Al0, All 4 BI, B2 5 B3, B4, B5 6 C1, C2 FORM 401 ANC-P (REV. 12/64} Alaska Oil and Gas Conservation Committee Page two April 9, 19 65 The relationship between the modules and sands shown in the above table can be correlated with the cross section sent you by C. F. Johnson of this office on February 5, 1965. Please feel free to contact me should further clarification be required. Very truly yours, G. W. Dunham CI/VqD:j lb 2805 D?_.NALI 2;.C>.-. L A.. LYON DISTR~CT NI^NAGER OF EXPLORATION ALASKA ANCHORAGE, ALASKA 99505 April 8, 1965 S'La'Lo of A2aska Department of Natural Resources :~aska Oil and Gas Conservation Committee 800 L Street Anchorage, Alaska Gentlemen: Unio~ Oil Company of California, as Operator for Marathon Oil Company, Ricnfla._d Oil Corporation, Standard Oil Company of California, l/Vestern I Operatlons, Inc., and itself in-the Kenai Unit proposes, where justified by reservoir development, to develop the Kenai Gas Zone of the Kenai Gas Field at a spacing of 320 acres per well. The above-mentioned owners of committed working interests within the Participating Area have given their approval to submit ~nis petition. The accompa:}ying report and geological cross-section summarize the justifica- tion fo~" .;ed~c~ion of the spacing pattern within the Kenai Gas Field to 320 acres F. ar wei. frc~-:'~ the presently-established 640 acres per well. '~F'e hereby :.'espectfully request that the Committee, pursuant to Sections 2012 and 2061.'3, issue an order of exception to Section~'6~"6"[']'[]~f the Oil and Gas Conservation Regulations, Title 11, Alaska Administrative Code, which order shall prescribe the requested temporary spacing pattern for the Field. __Very truly yours, . RAL:nnb