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Home My WebLink AboutCO 008Conservation 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 RE~'""~ ~,.olor item,~ Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plo~er/..~,~,anner) Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [~~-ko~ 'of various kinds [] Other BY: MARIA Scanning Preparation ,_5 TOTAL PAGES -/-~) Production Scanning Stage 1 PAGE COUNT FROM SCANNED DOCUMENT: ] ~ )c PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES ~ NO BY; Stage 2 ~M^.,^ D^~: D'-G'-¢-~ ~ ~"T~~ 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 Juneau, .~e~!~ RE: TEE APPI~ION OF ~ STA~ OIL INC., ms o~tor of the ~w~s.o~ R'iv~A- Field. for a ~~u~ ~~on, ~ ~cti~ ~1.'i Re~tl~ ~tle ~ ~. C~il ~rs Of the. Z. J'. Lo~m'sa¢ Lib~ary~ c~.t or fu~r '~eSl,~~ by imte~es~d pe~ '~a~ given. ~ .... ~ch DEPA~IT~ OF NA~ F, ESOb'It¢~S ~otice ~s hereby $~veu tha~ pursuant to Chafe,er 40, SLA 1955, Section 9,6, a public ~ar~ w~ll, be held ~n the ~cil ~bers o~ 2he ~uss~ L~br~y, ~chor~, ~l,aska, at 9,:~ A,~, on ~ril 30, 196~ a~ ~'he peC~,~i~ of S~,~~ Oil C~'~F o~ Cal~fo~'n~a, whe~n, ~a~d c~~, as ope~'a~r off ~he 0,~ t~ l'ltska ~mini,s:~a~:iv~ ~.: Ti~'l:~ 11, Division t, ~i~,~e~ l,, Sub. ch~ter 2, fo~ ~he pu~ose O~ ~v'i~; 'the :~or'a~y BO ac~'e wei'l sp~i~ pro,- AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. Ann Anderson being first duly sworn on oath deposes and says that--she ....... is the _.P.~.i..n..c...i:p..a..1....9.~_e..r._kof the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed"is a true copy of a ...l.?..g.?...l....n..o..t..i...c..e._.~.~69 as it was published in regular issues (and not in supplemental form) of said newspaper for a 1 period of ..................insertions, commencing on the ..~.O..$..h..day of ..... .A_.p..~.i..]; .......... ,19....6..2.., and ending on the ......... 20.~ day of of ..... .Am.r..i..Z.. ............... both dates inclusive, and that such 0ewspap.er 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 $ ...... .8.. ,.~. _0. ..... which amount has been paid in full at the rate of $1.25 per square. Minimum char_g,G,~,,~0. One in- serti~l~/als, ~r square. Subscribed and sworn to before me this ...~3.r~lay of....Ap;C...$..Z. ...... , Notary Publi,c in and for the State of Alaska, TRird Division, An~chorage, Alaska MY CON'MISSION EXPIRES RECEIVED APR 25 1962 Petroleum Branch Dk, i~ion of Mines and Minerals A|a~ka Dept. of Natural Resourcell I CONFIDENTtAL_t ., March 20, 1962 WELL SPACING SWANSON RIVER FIELD KENAI PENINSULA - ALASFA I. DEVELOPMENT OF THE FIELD The Hemlock Zone of the Swans®n River Field was discovered with the drilling and completion of well SRU 34-10 in August 1957. During 1958, 1959, and January 1960, develepment progressed in the Swanson River Unit Area of the field on the general spacing pattern of ~ne well on 160 acre parcels. From discovery .f the field through January 1960, nine wells were drilled which tested portions ef the Hemlock Zone with the fellswing results: Number Wells Percentage Commercial Preducer Marginal Producer Abandoned Non Productive 44.5 ll.0 4~. 5 TOTAL 9 The resulting percentage of abandonments indicated there to be a high degree ef faulting and an uncertainty of reservoir continuity. In early 1960, well SCU 41-4 was drilled and c~mpleted eff the 160 acre spacing pattern which had been set in the Swanson River Unit. In April 19~0~ the Operator requested an excepti,n to the est~ablished well spacing regulations t, permit developing the Soldotna Creek Unit on 'the same 160 acre well spacing pattern (i.e.~ locatiens 12~ 14~ 32~ and 34 in each section) as was being used in the Swanson River Unit. The Division of Mines & Minerals granted this exception. As of N, vember 1, 1960~ twenty wells had been drilled of which fourteen were commercial~ one was marginal, and five were non-pro- ductive including Halbouty's Halaska-King ~l well. All well i'nfor- mation and reservoir data obtained from these twenty wells and seismic data indicated evidence of faulting and stratigraphic. variations which would result in inefficient depletion ef the Hemlock Zone on 160 acre well spacing. Sn November 2l, 1960~ a Hearing was held by the Alaska $il & Gas Conservation C~mmission at the request of the Standard ~il Company ®f Califernia, Western Spera- tions, Inc. ~ Sperat~r, for an exception to the 160 acre spacing. Upon presentation ~f data, the Conservati®n C~mmission ~rdered that a tem- porary spacing of eighty acres per well be issued far a period of not more than eighteen months. Page 2. The fellowing tabulation shows as of March l, 1962, the number of Hemlock Zone wells which have been completed, abandoned, drilling, or possible future locations: 160 acres per well 80 acres per well Total locati®n location _ Completed Producers 26 Abandoned Drillers 7 Drilling 2 Possible Future Locati®ns 5 22 48 i 8 - 2 .7, 12 TOTAL 40 30 70 Figures I. and II., attached, present our current interpretation of the Hemlock Structure with contours on the H4Marker point. Figure I. shows the wells on 160 acres per well spacing pattern while Figure II. shows the wells un 80 acres per well spacing pattern. II. SAND CONTINUITY, FAULTING AND RESERV$IR DATA: A. Stratigraphy and Stratig~aphic Variations The Hemlock Zone has been divided into approximately six strati- ~raphic intervals as shown on the attached typical Induction- Electric Log. (See Figure III. ) Stratigraphically, there is fair correlation of the maj,r sand members of the Hemlock Zone within the Swansen River Field. Present information, however~ indicates the presence ,f numerous stratigraphic variations within various sand members comprising the Hemlock Zone. Structure Sections A & B, Figures IV and V, indicate the strati- graphic variations and sand discentinuity due t~ faulting within the Hemlock Zone. Similar stratigraphic variations exist through- out the remainder of the Hemlock Zone. Cere analyses data obtained within the productive interval indicates a wide range of reservoir permeabilities ranging from less than ene millidarcy to several darcies. B. Faulting Figures I. and II. indicate the faults which have been established with the available well control to date. Evidence of faulting is furnished by well log correlations, results of preduction and fermation tests, data from core examinations and analyses and Induction-Electrical Log interpretations. Further support of the presence of faults and their effectiveness as fluid barriers lies in the variatien of oil-water contacts among the various fault bl~cks. Evidence ®f faulting has been substantiated further by ebserved pressure differences which indicate the effectiveness of faulting as fluid barriers. Page 3. III. C. Reservoir Drive The reservoir fluid is a highly undersaturated crude oil with gas oil ratios ranging from 150 to 400 cu. ft./bbl. $il gravities range from 30 to 38°API depending upon structural positions. The current recovery mechanism displacing the produced oil is fluid expansion and to a lesser extent, edge water encroachment. Calcu- lations indicate the effectiveness of edge water encroachment into the productive reservoir varies considerably with the in- dividual fault blocks. D. Reservoir Pressure Reservoir pressures are declining as would be anticipated by the type of recovery mechanism and the present over-all spacing. No well pressure interference has been observed with the present well spacing and production rates. CONCLUSISNS A. All available 'well information and reservoir data indicate evidence of faulting and stratigraphic variations which would result in ineffective depletion and~ultimate l. se in recoverable .il on 160 acre well spacing. B~ Dan~er of cening or drawing water into downstructure producing wells especially at high well pr, ducing rates with consequent reduction ef oil recoveries is always recognized. Eighty acre well spacing will permit more uniform withdrawals, a more even encroachment of 'edg,e water inte the reservoir and c.nsequently a greater ultimate oil.recovery. Ce The present 80 acre well spacing appears, at least at the present~ to be adequate te efficiently deplete the Hemlock Zone. Future reservoir data may indicate a closer spacing may ultimately re- sult in the most efficient and ~reatest ultimate recovery of oil from the Hemlock Zone of the Swanson River Field. TAPE RECORDING TRANSCRIPT OF THE PUBLIC HEARING ON THE TEMPORARY 80 ACRE WELL SPACING PROVIDED FOR BY ORDER NOo 5, NOVEMBER 25, 1960 FOR THE HEMLOCK ZONE OF THE SWANSON RIVER FIELD STANDARD OIL COMPANY OFCALIFORNIA, WESTERNOPERATIONS,.INC. OPERATOR, HEL~ BY.THE DIVISION OF MINES AND MINERALS OF THE ALASKA DEPARTMENT OF NATURAL RESOURCES in The City Council Chambers, Loussac Library ANCHORAGE, ALASKA at 9:00 a.mo, April 30, 1962 Mr. Williams: "Thishearing, of course, is called for the purpose of considera- tion of the request from Standard Oil Company of California to make permanent a temporary well spacing order for the Swanson River Field. t~e have present here, on the Committee this morning, myself, James Ao Williams; Don Bruce, Chief, Petroleum Branch; Dick Murphy, Petroleum Engineer and Mrs. Brasch, our stenographer. Dick Bradley, our legal counsel, should be here but is not, for some reason or another° We have on hand a letter which I should perhaps read, from Standard Oil Company of California, signed by Mr. Chatterton, dated April 18th." Mr. Williams read the letter referred to in the preceding paragraph, which is attached hereto. Mro Williams: "After receiving this letter, we had the legal notice published on April 20th, stating as follows:" (Mro Williams read the legal Notice of Public Hearing, a copy of which is attached and made a part hereof). "This was published April 20th to give us the necessary legal notice of 10 days before the hearing as required by Chapter 40 which governs in this case. If there is someone wondering about administrative procedures, the administrative procedures act requiring 30 days* notice doesn't apply in this case; this is not statewide or general in its application, it is only for the Swanson River Field° If there is no objection, I will ask Standard to proceed with the petition. Mr. Chatterton, will you proceed?" Mr. Chatterton: "Yes sir. My name is Chatterton, I am the District Superinten- dent, Alaska District of Standard Oil Company of California, Western Operations. Standard Oil of California, Western Operations, as operator for two units, the -2- Swanson River Unit and the Soldotna Creek Unit which comprise the productive limits of the so-called Swanson River Oil field, along with our partners, the Ohio Oil Company, Richfield Oil Corporation and the Union Oil Company of California, request that, after this testimony and hearing, that the Commission enter a spacing order that is permanent for the Swanson River Oil Field, pro- viding for the drilling of 80 acre locations. We have Mro Don McFann of Standard Oil Company of California, Western Operations, who will present the testimony and the data." Mr. Williams: "Thank you. Mr. McFanno" Mr° McFann: "My name is D. A. McFann, I am a graduate petroleum engineer from the 'University of California. I have been employed by Standard Oil Company of California for eleven years as an engineer, performing assignments in drilling, production and reservoir phases of the engineering group of the producing depart- ment. My current assignment is as Reservoir Engineer for the Alaska area° I would like to present five exhibits which are taped to the wall. Exhibit Noo'S 1 and 2 are two structure maps, this being Exhibit 1, and this being Exhibit 2 of my exhibits. These are structure contour maps on a marker point which we call the H-4 point. These structure maps present our current interpretation of the structure of' the Hemlock Zone. Figure 1 shows only wells which were drilled on 160 acre spacing. Figure 2 shows wells which are on 160 acres plus 80 acre spacing. The colored symbols as shown on the two structure maps, the red circle shows wells which have been completed in the Hemlock Zone. The orange coloring are locations which were drilled to the Hemlock Zone and the Hemlock Zone found non-producti~.e of hydrocarbons and the location abandoned. The green locations are possible future productive locations within the Hemlock Zone° Future pro- duction data may indicate these to be productive. Figure 3 is a typical induction electrical log throUgh the Hemlock Zone of the Swanson River Field. This shows the sands which are productive in the Hemlock Zone. The upper three sands are oil productive predominantly in the Swanson River Unit and north of Fault E, which is at this location° Ail six sands are oil productive in the Soldotna Creek Unit which is south of the Fault E with one exception, there is one well in Soldotna Creek Unit which is north of Fault. E. Figures 4 and 5 on the struc- ture section are structural sections labeled (a) and (b) on the contour map, this being Structure Section (a) and this being Structure Section (b). Section (a) is a north-south section for the entire length of the field° Structure Section (b), the NW-SE section through the Soldotna Creek Unit." Mr. McFann read from the document titled "Well Spacing, Swanson River Field, Kenai Peninsula, Alaska", dated March 20, 1962, a copy of which is attached and made a part of this hearing. Mro Williams: "Do you have any questions?" Mr. Bruce: "I was looking at the contour map and the structure section and between 21-3 and 14-34 there seems to be another fault there that doesn't seem to appear in your Section." Mr. McFann: "I think Don, if you would notice on this, that either way you go, whether you are in this fault, or you are in this fault block, this well falls in the same subsea depth in either fault block, and chances are you would not see a very large magnitude fault on the section°" Mr. Williams: "Dick, do you have anything?" Mr. Murphy: One thing Don, we had discussed was the cross section on Exhibit 2; after you reach fault 2, why did you come east, then go southwest?" Mro McFann: "If you will notice on the section, every other well is 160 acre or an 80 acre well location° The sections were drawn up specifically for that -4- purpose to go through alternate 160 acre and 80 acre well locations. Also, if you will look at the sand present in 21-3, it is considerably different from the amount of sand present in 12-3 which we wanted to point out, it was within two 80 acre well locations, there was quite a lot of difference in the amount of sand present in those locations. We did want to come back up to this location and get back on the alternate 160 and 80 acre well locations." Mr. Murphy: "I have another question. Does Standard plan in the future to run any pressure interference tests?" ~r. McFann: "I would like clarification as to what you mean by pressure inter- ference tests." Mr. Murphy: "Shut one well in and produce another and show any draw-down in the shut-in well. Mr. McFann: "We did not plan this. We have found in many other locations this does not give you any information at all." Mro Murphy: "It doesnt." Mro Williams: "~f anyone wishes to be heard from the floor, it is now open for questions and comments from anyone in the audience°" Mr. John Sweet: "I am John Sweet with the Atlantic Refining Company. I'd like to know on what geologic evidence the statement is made that the faults are of large magnitude, and what specifically is reservoir engineering data that indi- cates faulting? I had numbers in mind°" Mr. Williams: "Would you care to answer that?" Mr. McFann: "I could answer part of that. On the reservoir data that indicates what reservoir factors we have to indicate faulting° On the structure sections we have indicated at the bottom the pressures within each fault block° If you -5- will examine those, you will notice there are in certain areas, considerable difference in pressures as indicated. The other question pertaining to geology , I am not really qualified to testify as to geological occurrences and magnitudes pertaining to whether there are large or small displacements. We do have indi- cated there on some faults there is a complete displacement between the Hemlock sand that are productive in one way or another which would indicate a lack of sand continuity between one side of the fault and the other side. I don't know whether that answers your question." Mr. Williams: "Would you care to add to that, Mr. Chatterton?" Mr. Chatterton: "No, there is nothing I would care to add to it." Mr. Williams: "Mr..~weet, would you like for us to have a recess while you ex- amine the exhibits?" Mro Sweet'. "No, thank you." Mr. Williams: "Do you have any questions, Mr. Soyster?" Mr. Royster: "Well, for Uo S. Geological Survey, I'll say that we have followed this development quite closely, being right beneath Standard Oil Company's guns up there in the Cordova Building. We run upstairs every time we have a question° It is pretty easy to get an answer to it. As far as t'his hearing was concerned, I knew it was provisional when it was first granted, I never could see why, be- cause if you had disapproved of it, I don't think you would have made them go back and make 160 acre spacing. The damage is all done, if there had been any damage. I think the benefits of 80 acre spacing are quite evident, inview of the structural conditions within that field. I will say for USGS and the United States, the lessors, that 80 acre spacing is certainly satisfactory to USo" Mro Williams: "I had no personal hand in making up these particular regulations as pertaining to well spacing, but I imagine there was some good reason for re- quiring the first o~der to be temporary and have a follow up hearing to make it permanent. I am sure the individuals who did make those up, and they were made after public hearings, had good reason to do this° Is there anything further?" Mro Murphy: "Mr° Soyster, in answer to your question whether the Commission might cause the operator to shut some of the wells in, I think Standard would have shut them in themselves long before they were drilled, if they were not optional." Mr. Soyster: "I think so too." Mr. Murphy: "On this point of this temporary order in spacing, I think when these regulations were written they had in mind operations of independents drill- ing shallow wells. I know you have had much more experience than probably all of us here in handling the independent's drilling of shallow wells. As you know, and I know, they will drill as close as they can to get oil out as fast as possible, disregarding the dissipation of the reservoir energy° I think that was what this was put in here for." Mr. Soyster: "That might be, I started back in early times when they drilled about 4 or 5 wells on one lot." Mr~ Williams: "Any further questions? If not, we stand adjourned." Members of the Alaska Oil and Gas Conservation Committee present were: James Ao Williams, Director, Division of Mines and Minerals; Donald Do Bruce, Chief, Petroleum Branch; and Richard Vo Murphy, Petroleum Engineer. Attending the hearing were: }~ro C, V. Chatterton, Standard Oil Co. of California Mr° J. M. Tasker, " " " Mr. R. Zierott, Mr. Co Wo Hagans " " " Mr. D. Ao McFann " " " Mr. John M. Sweet, Atlantic Refining Company Mr. J. R~ Wylie, Gulf Oil Co. of California Mr. M. H. Soyster, USGS Mr. W. J. Linton, USGS. ~CONSERVATION ORDER #8 Not included, in this file are the following exhibits - - Exhibit "C-i" Exhibit "C-2" Exhibit "C-3" Exhibit "C-4" Exhibit "C-5" Induction - Electrical Log SOCAL SCU 41-4 Induction - Electrical Log SOCAL Soldotna Creek Unit 41.-8 Induction - Electrical Log SOCAL Sotdotna Creek Unit 12-9 InductiOn - Electrical Log SOCAL Sx.~anson River Unit 32-15 Induction - Electrical Log SOCAL Swanson River Unit 14-27 2nd Redrill