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CO 032
Conservation 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) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: (~~ MARIA Scanning Preparation Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ,~YES NO 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 INDIVJD. UAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) II General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF A~ASKA DEPARTMENT OF NATUR~L RESOURCES Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re: The beneficial use of gas produced as ) a result of crude oil producing operations ) in the Middle Ground Shoal Oil Field ) Conservation Order ~J32 Middle Ground Shoal Oil Field May 10, 1968 IT APPEARING TRAT: 1~ The Oil and Gas Conservation Committee, pursuant to Section 2012 of the Alaska Oil and Gas Conservation Regulations (1964), published the notice of a public hearing concerning the referenced matter in the Anchorage Daily News on October 21, 1966, to be held on November 1, 1966. 2. Each of the affected parties received personal service on the notice of the public hearing. 3. A public hearing was held in the offices of the Division of Mines and Minerals on November 1, 1966. The hearing was continued for a maximum of twelve months. 4. By letter dated October 9, 1967, Pan American Petroleum Corporation re- quested a further continuance of the hearing beyond November 1, 1967o 5o Each party attending the November 1, 1966 hearing was notified ~by certi- fied mail that the hearing would be reconvened on January 16, 1968. 6o A notice of the reconvening of 'the public hearing on January 16, 1968 was published on December 22, 1967 in the Anchorage Daily News and waivers of personal service were received from all of the affected parties. 7. The public hearing was reconvened on January 16~ 1968 in the City Council Chambers of Z. Jo Loussac Library. Testimony and exhibits were presented by Shell Oil Company and by Pan American Petroleum Corporation. A wire from Phillips Petroleum Corporation concerning a possible purchase of the Middle Ground Shoal casinghead gas was made part of the record. 8. A notice of continuance of the public hearing until April 10, 1968 was published February 16, 1968 and republished for clarification on February 23~ 1968. A further notice of continuance until May 8, 1968 was published April 10, 1968. These publications were in the Anchorage Daily News. 9~ ~aivers of personal service were received from the affected parties for each n~tice~'~' ~ CONSERVATION O!tDER #32 Page 2 May t0, 1968 10. The public hearing was reconvened on May 8, 1968 in the City Council Chambers of the Z. J. Loussac Library. Testimony was presented by Shell Oil Company and by Pan American Petroleum Corporation, and a statement was made by Union Oil Company of California. AND IT FURTHER APPEARING TItAT: t. All gas now being produced is originally found in solution with the oil and in order to produce the oil the gas must also be produced. 2. The gas being flared is casinghead gas which is quite different in character and properties from gas well gas. 3. A small volume of gas is produced with each barrel of oil and 'the amount of gas does not exceed the amount reasonably necessary to lift the oil to the surface. 4. The reservoir energy is being efficiently utilized. 5. All gas production which exceeds gas consumption is being flared and burned for safety purposes. 6. Operators have installed gas lift equipment or made plans to install equipment to utilize as much of the heat energy' as possible on the off- shore platforms. 7. Lines' and most facilities have been installed to move the gas produc- tion from the platforms to the shore for possible marketing if and When a market develops. 8. The gas production will exceed gas usage for eight years or less, which is a short life duration for a gas contract sale compared to the usual fifteen to thirty years. 9o There is no market for casinghead gas at present since costs to de- hydrate, compress, transport and process the gas exceed the value of the tail gas plus the extracted liquids. i0. Operators are investigating and installing a pilot water injection project and it is not feasible to re-inject gas into the oil reservoirs until the success or failure of the water injection project is proved° 1t. If water injection does not prove feasible the operators will re-ev- aluate the feasibility of gas injection for pressure maintenance° CONSERVATION ORDER #32 Page 3 May 10, 1968 12. It is not feasible to store gas in undeveloped reservoirs in this field because of high compression and injection costs, possible loss of hydrocarbons, safety hazards, and contamination dangers. 13. There are no depleted oil or gas reservoirs in which to store the gas. 14. After providing energy for lifting the oil to the surface approximate- ly 10% of the produced gas is now being consumed for fuel, power or heating, about 33% will be consumed within the next fifteen months, 50% will be con- sumed in four to five years and 100% of the production will be consumed within eight years, after which gas from an outside source will be needed. 15. The operators have utilized all gas possible for lifting the produc- tion, fuel and generation of power, and have attempted to secure a market for the remaining gas. 16. Maximum beneficial use of the gas is being obtained under the circum- stances. 17. No illegal use is being made of the produced gas. NOW, THEREFORE, IT IS ORDERED that the oil producing operations in the Middle Ground Shoal Oil Field be conducted in such a manner that the maximum quantity of casinghead gas be utilized and the quantity of gas flared be kept to a minimum. IT IS FURTheR ORDERED that the burning of the gas produced with the oil be authorized only in the amount that the gas cannot be beneficially utilized for fuel, power, drilling, pressure maintenance~ storage or market sales. The Oil and Gas Conservation Committee will maintain continuing surveilance of the disposition of casinghead gas in the Middle Ground Shoal Oil Field. This order will be effective for 120 days and may be extended in successive 120-day periods upon a showing by each operator to the satisfaction of the Committee that the operator is actively pursuing a program to beneficially utilize the gas which is being flared. CONSERVATION ORDER #32 Page 4 May 10, 1968 DONE at Anchorage, College, and Juneau, Alaska~ and dated May 10, 1968. Thomas R. Marshall, Jr., E~ecutzve Secretary Alaska Oil and Gas Conservation Committee Concurrence: s A. Williams, Chairman Oil and Gas Conservation Committee sk Oz! an Gas ~onoervatlon on~:l~:tee ~a{1 L, V0nderAhe' ~emble-~ Alaska Oil & Gas Conservation Co~ittee Harr~ Wo l~ugler, Member ;' Alaska Oil and Gas Conservation Committee AGO 852.025 ')N.NERVATI()N ; ILE n3 ' OIL AND GAS C,{..)MMITTEE HEARING C;'5' '"i.-.:~'..' BENEFICIAL USE OF GAS .ON MIDDLE GR(5'[J:ND SHOAl. H e ~:~ 'c ~ n g .h ~..: '~. ,,.~ T . e s d a. y, J a n u a z" y 16., Ch..~..m. bezs (':,, the Loussac Library, Th..:, is a continuance of a Nov. 1, 1 9 6 ,,:::~: .' ,? a ,r i n g 11 12 13 15 16 17 18 25 P R O C E E D I N G S MR. V~ILLI .A/%4S..~: I'm calling this hearing to order, and I'll a~k Mr. Marshall to make the opening statement. ' MR. MARSHALL: Gentlemen, let the record state that we .are beginning at 9:35 a.m. This is a continuance of a hearing On. Conservation Order 32, which' was originally scheduled to be 'held on' November. 1,. 1966 o At the request of the affected operators, we allowed a continuance~hto this date, January 16, 1968. Notice of Public Hearing' for this date was published in the Anchorage Daily News on December 22, 1967. The stated purpose of the .order is to consider the · issuance .of an order requiring the beneficial use of gas, produced as a result of crude oil producing operations in the Middle Ground Shoal fields. Let the record also ~eflect that all persons in attendance at the original hearing on November 1, 1966,. received Notice of this continuation..! ..believe there are no further remarks. HEARING OFFICER.' ' ' ~ I might also say that all the members of the committee are here. My name is Williams. We have Mr. Marshall, · executive secretary, Mr. vonder ~ihe, mining engineer, Mr. Kugler mining --' I'm sorry, these are petroleum men -- my epology, -- petroleum engineer, Mr. Ku~ler, Detroleum "geologist, Mr. Dale R COURT REPORTERS WE~T EIGHTH AVENUE m ~UITE g 277-4713 ANCHORAGE, AI.,A~gKA 10 11 12 13 14 15 16 18 19 2O 21 22 23 25 -3- Wallington~ °~ Deputy Commissioner of the Department of Natural Resources. Advisors are Bob Larson and Mr. Gilbreth; Legal Counsel, Mr. Har~ig. Witnesses will be sworn in and will also be qualified if they have nOt been qualified before this committee before. I understand that -- uh -- there is a proposal by the industry for some special procedure that they would like to follow, and I would like to hear on that at this ~time. MR. RUDD: It might be appropriate first to in~.roduce' attorneys who are appearing here on behalf of the operators. am Joseph .Rudd, appearing for the Shell Group and with me is Leslie Kell of Shell Oil Company in LosAngeles. Next in line is Oscar Swann~ Pan American..and beyond him is Ralph Crews appear~ ing also on .behalf of the Pan American ~roup. As to the procedure, we ask that we can use the same procedure that was adopted in the' last session of this hearing. The operators on Middle Ground Shoal haVe attempted' to coordinate their presenta~on ~. ..... so that 'they don' t have overlap or repiti- tion and with that in mind, we will present three Witnesses and ask that questions be withheld until after ali of the witnesses have given their statements and then we will make' the panel of witnesses available for questions from the committee. HEARING OFFICER: Good enough. I think tha= we can proceed.that way. After questions have been asked by the committee and then we will entertain questions from the audience, COURT REPORT£RS 277-4713 ANCHORAGE, A~S~ .AGO 851690 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 -4- i f any, if this~f~agreeable with you. MR. RU~D: Yes, sir. · MR. SF. LLINGER: Mr. Williams, I would like to enter my appearance on behalf of Skelly Oil Company. My name is George W. Selingero MR. RU~D: I would like to make just a brief remark way of.,introduction here. It was pointed out by Mr. Marshall that this was a continuation of the hearing which was commended a little more than a year ago and to consider the utilization of gas at Middle Ground Shoal. At that time statements were made and tentative plans were discussed and during the intervening fourteen months a great deal of production history has been .accumulated, many additional wells have been drilled, additional platforms have been installed and it has been possible tO install equipment and facilities for additional secondary beneficial use of , the gas. As was pointed~'.~out in the first session of this hearing~..the primary beneficial use of the gas remained and is the function in moving oil to well bore and lifting it to the surface and making it possible to deliver that oil to market° Our witnesses will up date the estimate or projections that were made before and will provide new information which i~ has been possible to accumulate during the past COURT REPORT£RS WE~T I'IOHTH AVENUE 2'77-4713 ANC. HORAO£, ALASKA AGO 85].691. 10 11 12 13 14 15 16 17 18 19 2O 21 22 24 25 -5- year. ~ first.witness.will be Dean Allen, Shell Oil , Company. (Dean Allen is sworn in before testifying, by Mr. Marshall.) MR. ALLEN: i should qualify myself first. I am · · , a graduate petroleum engineer with Bachelor and Masters degrees from Stanford. I am employed by Shell Oil. Company and have been with them for thirteen years principally in reservoir engineering and all of that exPerience has 'been in our Pacific Coast area. At'present, I am the Division Exploitation Engineer with the Alaska Division and I have responsibilities for the Middle"Ground Shoal F&eld Development; I have been working on Alaska projects and the Middle GroUnd Shoal. in particular, since September of 1965, both here and in our LosAnge!es office -- uh before. I came here. I have been in Alaska for the past two ., years.' For ~ive years previous, while I was. in California, I also served on. the Conservation committee .of the Oil Producers of the State o'f'California and during the last year of the assign- ment I ~ryed-6n~'~.",~', the engineering board i tself~ which reviews pool Considerations° .. HEARING OFFICER: The committee will accept' those · qualifications.· . · MR. ALLEN: What I would like to do~is present essentia2 an introducti,on of wha~ all three of the Witnesses will disc~ · and then I'll' zover a Portion about recovemy, AS I understand it, the purpose'of the hearing is to discuss and hear testimony on the benef~¢~aI uses 'of the' gas R & R COURT REPORTERS. 8~B WE:Err [I(~HTH AVENUE -- BUITE B 277-47 ! ~1 :, · ANCHORAGE. ALASKA AG O 85169 2. ~ , . , ly 10 11 12 13 14 15 16 17 18 19 2O 22 25 -6- which is~produced with the oil at Middle Ground Shoal is being used. Now, the operators of both Shell and Pan American will provide information relative to the Whole operations, and what we will try to do is to show that the principal beneficial use of the gas is the expenditure of the natural gas energy in bringing this v&luable product the crude oil itself, to the surface for market. We can show indeed that the oil cannot even be produced at all without bringing sOme gas'with it. The amount of gas that is produced is small by usual oil field standards and does not exceed the m mount reasonabl~ necessary to produce that oil to the surface. In fact, we actually have to inject additional gas into the'producing stream in order to produce the oil to the surface at rates which we consider to be economical. Middle Ground Shoal , Field is an oil reservoir and the p~incipal conservation effort that is made here is to maximize the economic recover' ~of the crude oil that is there at a minimum expenditure of the gas energy that was present in the oil in the · reservoir. ' ' We will try to show ~hat additional or secondary. uses of the gas are now being made and that we are trying to enlarge, upon this scope to achieve additional uses of the latent energy that"s available in the gas after it's been in delivered to the surface. TheSe are/the realm of field -- e: R COURT REPORTERS WE~T I~IGH'rH AV~'NUE -- gUrrl~ ff ~'77-4713 ANCHORAGE. A~8KA AGO 851693 : ~'CU 19. 13 14 15 17 18 20 23 25 -7-- me, in ~1~e realm of fuel -- of fuel or power. .. We will also show that provisions have been made at Middle Ground Shoal Field and are now being made at Middle Ground Sh'oal Field to bring gas which is not being consumed on the platforms for purposes of fuel and power to the shore facilities where a market, 'when it material- . . izes can .accept this gas. And finally, Pan American will comment on the potential · marketability of this gas'.--iVh.ich .Pending. the availability of a market is now being flared In my opinion, the maximum beneficial use of the gas whJ can be made at the present time, is being .made and the · operators 'have .provided for the future use of this excess gas as those uses become possible. My particular portion of the testimonY is to cover the principal benefic&A1 use of the gas which is. the expenditure of the gas energy · . .i~.' producing the oil to the' surface for the market. I'll discuss first the nature of th.e fluids and the oil recoverY mechanism .~hat!is~iactive in~.~~I the Middle Ground Shoal.. We all recogni'ze ·that the oil a'nd. gas are produced at the Surface 'at '- uh -- 10w pressure and that the Surface. temperature, is about., sixtY pounds. At 'those pressures. and temperatures the gas and °il are two distinct identif- iable substances.. In the reservoir the oil and .gas are undea , . .. very high Pressures. Originally the pressure in the Middle. ,, ' , , R & Ill {IOURT R£PORT£R8 ,., w,.~' ~,G... ^v,,.u~ - .u.T., AGO 85 ,:' :277-4713 . ANCHORAGE, ALASKA l0 12 13 14 2O 22 25 Ground Shoal is about four thousand pounds, and ~that pressur~ and at the reser, vior temperature, these two substances exist as a single fluid. There is no free gas in .the reservoir. The gas that is present is dissolved in the oil and is a part of the fluid that is there. In order to produce the oil, we must also produce the gas that comes W~th it -- that is dissolved .in the oil. Gas solubility in the oil is dependent .upon the eemperature and pressure in the amount of gas that was available to dissolve in the oil at' the time that these things were formed. In Middle Ground Shoal one barrel of crude oil will evolve four hundred standard cubic feet of gas at the surface. Now, at subsurface pressures', the gas acts to swell the oil by only one cubic foot per barrel. Its ability of the gas to expand from .that.one .cubic foot per barrel to. four. hundred cubic foot per barrel is the ability -- ula ' - the work energy that we are looking at for moving the oil Out of the reservoir up the Well casing and ~o the surface.. As I' menti'oned~ the amoUnt of gas that we produce is small by the usual standards for.this high of gravity oil that we have. I. have checked Standard's correlations for this oil and on the basis of those correlations, it would indicate' that this oil should have twelve hundred cubic feet! AG~ 85].6~95 R COURT REPORTERS 2TT-4T I ~ ANCHORAGE, A~S~ 10 11 12 13 16 17 21 '22 25 -9- , per bar.'~t~. in it rather than four hundred we've seen. When. an oil, a crude oil -- uh-- is starved for gas, as the' crude oil in the Middle Ground Shoal Field is, it iS said to be underSaturated -- that is to say that there is room for additional gas' to be dissolved in the oil above what is actually there. Crude oil is saturated with gas When a drop in pressure would cause a small amount of gas' to. be released from solution. With an undersaturated crude the d.~op in pressure will not release gas until that pressure has droPPed down to the saturation pressure. We call the saturation pressure the bubble point. .At Middle GroUnd Shoal, the way that the oil is b~ing produced from the formation at present is by. expansion of the oil~ the water and the rock that are present there,-- uh-- We're still above the bubble point. pressure, so that the wells have been.drilled into the reservoir and are reducing the pressure at that particular point in the reservoir to allow these materials t° expand and thereby .dispel oil--displace oil. into the well bores. InSide of the well, this oil' · continues' to rise up the well casing until the~ pressure is reduced sufficiently and the gas starts coming out of solution. At that point, of course, we get the rapid expansion of the gas and the further production of the oil to the Surface by natural gas lift... The oil iS lightene¢ by "the presence of this gas allowing Us tO keep lower · R & R c:OuRT REPORTERS , , · , " B'll weir I~I~IHTH AVENUE -- ~UITE B ~'77-47 ! :S ' AG,O 8 5.1696 ,' , ANC. I-IO.A(~, ALAII<A 10 11 12 13 14 15 16 17 19 2O 21 22 23 24 25 -10- pressu~,~ at the wel'l face so that more oil will come into 'the well. when the gas has fully expanded, in its. roughly ten thousand feet of travel from the subsurface to the surface, the gas pressure energy has been 'fully Utilized and the only other energy present at that point is what latent energy is in the gas itself. I mentioned that the Middle Ground reservoir was presently producing by expansion of the fluids and rock. We have no indications of any other sources of reservoir energy active at Present,. such as water encroachment. or Something o'f this sort. under those circumstances, we expect the reservor pressure to c°nttnue to drop until the bubble point pressure is reached. At the bubble point 'pressure, the gas will start coming out of solution .in the actual .rock peres and as it does so, it will expel the oil from'those pores and drive it to the' wells where · it can then be lifted to. the surface. A reservoir which uses gas energy, such as the energy that is present in the oil is said to produce by solution gas drive and is making, maximum efficient use of the dissolved gas energy. There is no exc~ssiVe or improper' use of this.gas energy being made at Middle Ground .Shoal Field. Our operations. should result in the maximum economic recoVery of oil · , from that reservor. I also mentioned that~ the amount of gas that was R COURT REPORTERS WEI~'J' IEI(~HTH AVENUE -- BUITE S s'77-471 :S ANCHORAGE, ALASKA AG 0 =8 51,6 9 7 10 11 12 13 14 15 16 17 18 19 2O 21 22 24 -11- produce~with the. oil was not -- uh -- excessive or was not inexcessive tO which is necessary for efficient produc- t.ion of the wello .In fact, we have to add gas to the stream in order to be able to produce the oil to the surface. .We actually had to take this gas at' sixty pounds and recompress it to be able to put/back into the well stream and cy. cle that gas back through there to get additional gas in th~ oil tO produce the oil to the surface. It. was mentioned last year that the gas-oil ratio was ' small and wasn't expected to change. Well, it hasn't. .cumulative The / of gas-oil ratio to date is about four hundred and thirty cubic ~et per barrel for the entire field° The present gas-oil ratio in November was four hundred, and ten 'cubic feet per barrel. You will recall that these . · compare to the four hundred cu~i¢ foot per barrel figure that I said was the solution gas ratio. The solution gas ratio was determined in laboratory recombination of the' produ fluids° Although the primary producing mechanis~ is considez to make maximum beneficial use of the natural gas energy available in the formation, we are also working on an additional oil co,nservation measures -- a plan to add supplemental energy to the formation to try to get more of the oil out of the ground. We hope to increase the recovery by water ~'njection -- water flooding° We are presently conducting water injecti~it~ tests in our well A-44-11 which if successful, will act to further es'B WIlT EI(]HTH AVWNUE -- eUITI~ 8 277-471:3 ANCHORAGE. AI.AOKA AGO 851698 ced ed 10 11 12 13 14 15 16 17 18 19 2O '12- 'minimi~the amount of gas which might be produced with a barrel of oil by keeping the pressure at a ~igh level. When this hearing was started a year ago, you were told that it was too early~in the development stege to provide many of the factors which are necessary to know before you can discuss secondary beneficial uses of the gas. You were told that the reservoir had to be further'developed as the productive limits on the field .'.itself had to be established and that the oil and gas volum~.had to be determined to some reAiability. We needed to be able to provide a reliable oil and gas forecast -- a.forecast of production befOre'we'Could really put together an evaluation of the market potential of this gas. .In one yearts time~ we have come a very 10ng Way toward having these conditions met. I have a map of'Middle Ground Shoal. Field over he~ewhich I would like to offer as exhibit one, ~flcan move over hereto the map. showing the present developments/ The red spots that you see here are the wells that have been drilled and are .now producing. As you can see the north end of the field is pretty well ~eveioped, the first two platforms that were put into the -- o~ the stru=ture -- uh -- some sparse · development on" our C Platform and also on the Pan American D"platf0rm. There are still some areas here that have not been develope~ to the extent that -- uh -- we might still get s~Prised as to how the picture really looks. ~" R ~ R COURT REPORTERS · B~B*WE~ EleHTH AVENUE -- EU~[ B 277-4713 AGO 85 ,ANCHORAGE. 10 19. 17 18 2O 21 22 9.3 -13- The four--platforms, are located here '-- Pan American's plat- form Baker and our platform A; our platform C -- Pan American' s south' Middle Ground p. latform'D.-Dillon.' The Ereen lines that you see on here are 'the oil lines that connect these platforms and you.will notice that they actually are looped to shore -- there are two lines to shore. More will .. . be said about these lines later by. subsequent witness. In addition to the geologic picture that we have here, we also have a pretty good idea of the container size from seismic in'fOrmation. We have good data on the nature of reservoir fluid -- the oil'and gas and the water. We have information, as I have mentioned, on the relative amounts of the oil and gas that are present in the reservoir in a barrel of oil and we feel that we have : a good idea to what the principal primary producing mechanis] iS o The large segments that are not developed add a small plot as to being 'able to forecast realistically. · As I mentioned~ we are just beginning on our water injection program~ so we are not sure how.th&t is going'.to go. The success of a water flood is not yet assured. Nevertheless, with certain basic assumptions, we can make a much better forecast now of the oil and gas potential and production deliverability from this field than we could a year ago. As a matter of fact, we have had to change our forecast · rather frequently but with ... additional well data we are R &. R COURT RE:PORTE:RS · ~.B WIf~,I' EICIHTH AVENUE -- IUl'rl[ B ANCHORAGE. ALABKA 8.5].700 10 11 13 14 17 19 2O . continuity supprised by. the vagaries of Middle Ground Shoal Field. Mr. Kelber, who will follow.me in his' testimony, will show you an exhibit'which, has on it,.amont.other things a gas production forecast. I prepared that forecast using the current data that we have and assumed a. successful water.flood for the certain set of characteristics. It .is' just one of the several.forecasts:that I could have'developed " depending upon what assumptions I 'Chose to use in preparing ' the water flood progress. Whi!e I believe that th~s fore- case is a reasonable,forecase,.I~point out again that many · of these,water flood ~ar~me~rs.'.,have yet to 'be varified. With that, 'I would like to tUrn. it over'to Mr. Kelber Who will discuss the SAS use beneficial'to use of the gas on a secondary basis. (No F. Kelb'er is sworn in. before testifying, by Mr. Marshall) MR. KELBER~ I~.m-N. F0 Kelber~ Division Mechanical ,E~.r~ Engineer with Shell Oil Company and a greduate of Lehigh University in Bethlehem, Pennsylvania with a B, achelor of ~cience degree° I have been with Shell Oil Company approximately twelve years and during that time have worked, principally on facilities handling.'oil and gas and with the drilling of oil and gas wells~ My time has~ been spent principally in Lousianna and Alaska and I have spent the last two years ~n Alaska being, primarily & R COURT REPORTERS WI[lIT [IQHTH AVI[NUI[ -- BUIT[ B 277-4713 ANCHORAGE:. AI. ASKA AGO 85:170! 10 12 16 18 19 2O 22 25 - i5 - wit~,~he development of Middle Ground Shoal Field. I am a registered'profes'sional engineer in the State of Louis iana. HEARING OFFICER: ~ will accept your qualifications. MR. KELBER: I would like to cover two general areas in my comments. First, I would like to. continue with the 'review of last year's testimony and continue with Mr. Ail review discussing three principal items, that is, pipelinl design, experience ~and operatiOn, utilization of natural gas for fuel and gas lift operations. I would like then to move on to progress that has been made on these items and our current .estimate' of gas production which Mr. Allen has prepared, an estimate of fuel usage and conclud~ with some general comments. At the hearing last year we discussed pipeline opera- 'tions and installations. At that. time the pipelines from Pan American Platform Baker to SAS Platform A~ and the line from SAS A to shore were installed.. We disCussed some of the mechanics of the pipelines and some of the design considerations such as co-efficients of lift, drag, restraining forces 'and velocity distribution. · We also discussed' at that time some of th~-static or dynamic problems of pipeline installation and operation, and discussed at th~ time a phenomenon called bordersea shedding. Questions .were asked ¢0.pcerning possible!'~buria R & R COURT R£PORTE:Rg BEI WElT I:I~HTH &VENUE -- Iurr~ B 277-4713 ANCHORAGE, ALASKA AGO 85].702 11 13 18 2O 21 22 - 16 - of ~se lines and it was stated at that time that due to the bottom conditions at this location that burial was not possible. Our conclusions were that the lines from A to shore were not in ifact cap'able of handling gas pro- duction. Experience that has been gathered since the November '66 hearing on operation of the line, farther technical analysis by a joint committee from our respective com- panies, have verified that the conclusions then stated were in fact correct. We do no~ at this time believe that the lines from SAS Platform A to shore are capable of carrying gas. On the subject of fuel~we discussed the possible use of natural gas for' fuel on .the platforms. We stated · that it was indeed possible to use fuel for- the natural gas for fuel; however, stated at that time that we did not feel that a reliable source was in fact established. We pointed out that various operational conditions requir shutting~down or'wells which could in fact reduce or cut off your fuel .supply, therefore leaving .yOu without power or control in a very severe environment. The question of lines to the' platform .were raised as' an alternate soucre of f~el and we stated at that time · that if we indeed felt the lines to be.reliable, this would be an adequate ~? source of a~,backup source of fuel. R COURT REPORTERS WEBT EIQHTH AVENUE -- SUIT[ B 2?7-4? 13 ANCHORAGe', ALASKA ,AGO 10 1! 12 13 17 18 21 22 23 25 -17- W~lso discussed duel fuel engines, that is engines which are capable of burning natural gas and/or . · at -- uh -- with just a minor conversion.or just a minor switch over.. At that timelwG stated that neither of the operating 'companies had dual fuel engines installed on the platforms. On the subject Of gas lift~ we stated that we indeed "h ad~ plans to install gas lift compressors on the platform and that -- uh -- they were on order, at that time. Also, pointed out that in gas lift operations that the 'real consumption of gas ~lifts -- uh -- of gas in a gas li~t · operation was for a minor system makeup as well as fuel consumption. I would like to just review with you briefly a gas~ lift operation. Gas is taken from the gas-oil sepa=ator and'then gas is taken to a compressor -- compressed in various number of stages to approximately one thousand' pounds where it is ~njected into the tubing casing annulus. The gas is metered by valves in the tUb&ng' str~n§~..~ . from this annulus into the tubing where it expands and does exactly the same as the original gas ~n~ solution w~t~ dqes the oil/as Mr. Allen described. The gas is merely a produc- ing aid and does no more than the original gas in place° We also stated at that time that we did have intentions to install gas lift compressors as soon as possible. R & R COURT RE:PORTE:RS 81~g WElT EIGHTH AVENUII[ -- IUITE B 27?-47 I~S ANCHORAGK.. ALASKA -6 10 12 16 2! 23 25 - 18 - Thi'~covers pretty much the comments that ,we had last year concerning pipeline design, utilization of gas for fuel line gas lift operations. From here I would, like'to discuss progress that, has been made in these fields. In the summer of 1967 SAS Platform C and Pan American Platform I~llon were com- pleted and in~tial wells were drilled. Pipelines were from Ptaltform A to C and C to D, these pipelines designed to be capable of handling natural gas. As you can see by looking at this map~ the installation of these lines. provided a loop for all platforms, provided a route to shore and provided an alternate fuel source for ~each of the platforms. Comple~tion of the wells, then on each platform has now provi'ded an additional source in which to feed into the pipeline for each of the platforms. With this line complete, several sources of gas now feedi into the' system, we have the backbone of the system that can, be utilized for gas distribution and fuel usage on the platforms.. We are now in a position to proceed in a cal and orderly fashion to convert all equipment to natur; being gas. We now have on SAS Platform A and C, gas/utilized f~ compressors and for steam generators. In the near future We will add AC power generators, gas turbines and utilize this gas for ,' de-aeration ~erhaps of Cook Inlet water in preparation for a water flood program. Further, gas comp'. · R & R COURT RE:PORT£R~ 8,. w..'r .r,..','. AV'.U'- .urm · 85LT05 . ANCHORAOE, AL,AOKA lid 10 12 22 - 19- sor§'~hich we had stated our intention to install last year have now been installed and are operating' I would like to submit this .as Exhibit #2. This exhibit has several curves on it. The upper curve was prepared by Mr Allen .and is a forecast of gas produced on Middle Ground Shoal SAS propert'y, based on the assumption again that th. water flood will ~be successful. The lower curve is a ' · curve-of' estimated fuel gas consumption, based again on the same parameterS.' and this has been prepared by'myself. The middle 'curve is merely the sum of. the two curves. It does show the gas av'ailable from or necessary for Operati, At this point in time we are utilizing approximately i0% of the total prOduced gas at Middle Ground. Within the next eighteen mOnths we will be using approximately one-third of the produced gas; .within the next four or · five years, one-half of the prodUced gas; 'and by the 1976 period in here we will be utilizing 1007~ of the gas .pro- duced from Middle Ground Shoal for lease usage. To look at this exhibit in a little more depth, I'd like to point out two or .three other factors. Integrating this .upper curve of course would give you total estimated gas volume at Middle Ground Shoal. Integrating the bottom curve would give the total anticipated fuel usage. This area in here would -be excess gas available from our operation Although graphically it may not 190k that wa~y~ I'd like COURT RE:PORTER8 Wl[~r [IGHTH AVENUE -- Burr[ B 277M,71~ ANCHORAGI~., ALABKA 10 19. 13 15 16 18 9.0 9.1 9.2 . 9.5 -20- to point--out,that this volume here is less than one half · of the gas available from total production. ~he gas needed under this curve here is approximately two thirds of the total gas available from prodUction. In an effort to put this gas here in conte~t, ~we estimate and i say we estimate because we are unable or do not have all of the factual data tO give you the exact numbers -- that this gas'is-to be less than three percent of what we anticipate our ~h~aRiver Field to be; less than two percent of what we think the North Cook Field might be; less than one percent of what we think the Kenai,Gas Field may have. Each of these sources have been suffic&ent to have attracted to a market. I believe that you can .~ se~? by the relative size of this accumulation why no market has become available° I have prepared another exhibit and I Would like to will submit it as exhibit three w~ich/show in detail the steps that have been taken to further utilize some of the Produced gas at Middle Ground. You will notice that we have eighteen separate items that have been listed here as projects either complete,in progress or in the planning Stage which would fully utilize ch~ p~oduc,edgas, we have i'nstalled a,gipeline shore and a platforml00~' which was completed in'September of 1967. Four huddred and forty-horse P~r¢ompressor has been installed on platform A. This & R COURT REPORTERS WI[BT BI(~HTH AV[NUE -- I~UITE 8 ~TT-4TlS ANCHORAGE. AL.ASKA AGO 851707 '9 10 11 12 13 18 19 22 ----25 - 21- waso~ompleted in February, ,1967. We have converted. steam genera.tots on Platform A from diesel to natural gas° 1t00 horsepower compressors' installed on PlAtform A; this was completed just this.month. A 660 horsepower compressor installed on Platform C; again this was com- 'pleated just this month. We have conver~ed steam genera- tion equipment on Platform C from dies'el to natural gas... In progress we have.conversion-of AC generators on P'lat- ~orm A and Platform C, We have additional compressors 'on order for both Platforms A an'd'C. We have'gas dehy- dration equipment on orde.r for both Platforms A and C; ~his equipment necessary to drive the gas before it can be transported safely to other locatiOns. We have gas turbines on order for water'fleod on Platform C. In planning we have water de~a~rat~ion towers for both Plat- forms A and C for a water flood and gas turbines being considered for equipment on Platform Co Gas transport to shore for the onshore facilities where we treat Our lease crude will occur late this year, in '68, after we'have adequate dehydration compression equipment on the Plat- forms. Gas sales, planning, a~ of this date we can offer no firm date in that regard. In conclusion, I have reviewed with you three items from last .year's testimony~ ~'~at ts, pipeline, pipeline~ design consideratio~sand, ?operation; utilization R COURT RE:PORT£R~ Wlf~T EIGHTH AV[NU[ -- IUITE B 277-471~ ANCHORAGE, ALAOKA AGO 851708 10 11 12 13 16 18 2O 25 - 22 - of m~%tural gas for fuel, and we discussed .briefly gas lift operations. Further, we .have reviewed in detail steps that have been taken ~6ward use of gas for fuel, · and have demonstrated that we have moved forward in this field. Also we have shown the excess gas from our o.perations to be minimal and can state that it has not attracted a firm market as of this date. We are con- tinuing to search .for markets, and this will~ be covered by Pan American. Should a market, develop we would esti- mate that the value of this gas'would be something 'in the neighborhood of one percent of the value of the oil. (Mro R. B. Giles is sworn before testifying bY Mr. Marsh~ BY MR. SWAN,~ Q. Mr. Giles, will you state for ,the record what your name is,. by whom you're employed and what your ~raining and education as an engineer has been?' A '" Yes, sir,Ba'~t Giles, Pan American ' Petroleum Corporation, Denver Colorado. I received a Bachelor of Science degree in Petroleum .and Natural Gas Engineering from Pennsylvani 'State University.in 1948. Since that time I've been em- ployed by Pan American and I -- thinking about it I'm .. about to enter~my twentieth, year. I hadn't realized time .had passed by so quickly. In my employ with Pan American I'Ve been 'in various engineering capacities, pred0minantl in the Rocky Mountain region, and in various engineering & R 'COURT R£PORTERS WI[ET I[IGHTH AVI[NUI[ -- I[UITI[ B 277,~71:3 ANCHORAQIf. AI.A~KA .. 10 19 2O Q Q Q - 23 - sup~wisory capacities. I am a registered professional engineer 'in the States of Colorado and Wyoming, and am Chairman o'f the Rocky Mountain Oil and Gas Association's · technical Committee, and for the past three years I have s.pent more. than half of my' time ~on A~'aska, including Middle Ground Shoal' and other fields where we have pro- duction operations in the Inlet. (To the Commission) May his qualifications be admitted? CHAIRMAN: His qualifications are admitted° Mro Giles, has Pan American conducted its .own 'independent study of' the part of the field which is being .developed from its two plat'forms for the purpose of developing a forecast of gas production and a forecast of the utiliza- tion that can be made of that gas after it has been used · to ~£ft oil? Yes, we have, and you will see as the testimony progresse · that our projections a~d our conclusions are very, very similar to the conclusions reached by the two Shell wit- nesses for their two platforms. while the two previous' You have been present~itnesses testified? I have. And are familiar with what their testimony was? I am. When we're talking about gas in this case what kind of gas are. you talking about? Does it have'a name that is · .. R & R COURT RE:PORTER~ ANCHORAGE. AI. AIKA 10 16 !? 19 2o A Q .A A q. - 24 - comm~ to the oil industry that distinguishes it perhaps from other kinds of gas? Yes, we're talking in terms of casing head gas which is · quite unlike gas well gas. Let me explain this. ~Gas well gas is'a dry gas; it's 'a merchantable product under sever'~l thousand pounds when it arrives at the wellhead. 'Now the casing head .gas is a different story because when it arrives at the wellhead it has low pressure and it,s wet, containing a lot of liquid heavier ~hydrocarbons · ..entrained in the gas. To put it in 'the same class, the same condition as dry gas well gas two costly things must be done. First, you have to compress the gas to hJ4gh pressure, and secondly, you have to treat the gas by extracting the entrained liquid products. Does the cost of doing 'this sometimes exceed the value .of the finished product? Yes ,. sir. Do you have some exhibits ~Similar' to the exhibits which the previous wit. nesses put on? " Yes,' I do. What is your first one there? (Pause) I refer, you first to Exhibit ~1, Mr.' Giles. What is it?' What inform tion is sho~n on it? EXhibit 1 shows for the' ChakaChatna Platforms Baker and Dillon in the Middle Ground Shoal Field, the. equipment 10 29. - 25 - thaf~has been coverted at this time to gas utilization and h~w.much each item of equipment .is using in the 'way of gas. And additionally, the equipment that is planned for gas utilization on these ·twO'platforms. Reviewing it briefly the equiPment that's 'been converted to gas so f~r is all on the Baker platform:. ~he~AC power generator -the DC power generator,· a gas'lift compressor~and a .' steam generator'. So at the present time we have converted some 800,000 cubic feet per day to gas f6r this equipment. Additionally we plan' this week to convert on Dillon a ~ steam generator to gas usage and within the next .month the AC and DC ·power generator~on the two Platforms. By April' of '68 we expect to have three K0beson Dillon Platform well, that will be -- the engines will be operate( by gas. We show that eight K~Obe'' en~ines~wtll.be used, · and be served by gas for the~ prime mover. The additional , Kobes will be from the Dillon Platform as additional 'well: are drilled from that platform. Finally we show'an extensible item that' will be converted to gas, used -- · served by gas,-and these are two turbine water flood units' on each platform. We expect that the first ·two will be installed in fl~e latter part of 1968, and addi.' ttonal two i~ 1969. So we run down a total 'on the right- hand side of Exhibit 1 of. 4373'MCF per day thatii, s served wi · ...,the produced gas. But you'll notice that we ~ave an · & R COURT WEIT EleHTH AVENUE -- EUITE l ~77-471~ ANCHO~GE, AGO 851712 .© 10 11 12 13 14 15 18 2O 21 22 - 26 .. as~isk that following the completion of drilling opera0 tions on the two platforms, the fuel requirements will .approximate .3600 MCF a day. This is because the power · - generators would be taken out of se. rvlce. Now moving over to Exhibit 2, we ~ave a~lot for the two Chakachatna platforms, Dillon and Baker, of two curves. The first is past history and I -- the best accurate -- the most reasonably accurate forecast we can make of produced gas for .the life of' .these two platforms, This is a plot of yearly average gas...production for the produced gas curve. The second curve, total fuel gas consumption, is again a yearly average plot, and you'll see that it does level off in mid'69 to the 3600 MCF a day figure that was shown in Exhibit 1. What this Exhibit 2 really shows is that for the next six years we will have some excess gas ' ' available, proddced gas, but from 1974 on -- or in other words, for 'the remaining sixteen year life of the' two platforms, we'll need gas from another source for fuel and power on the platforms. We have a deficit occurring in 1974, and from that.' time on. Now at this time we, , :~ike Shell, are using perhaps 157o of the produced gas for equipment,~ and within the next 18 monthS we will be using a third, of the produced gas ~or our equipment on the platforms ~or power and fuel, but as I said before as these two curves on Exhibit 2 converge we are using more ' 6 10 11 · 12 14 15 16 17 18 19 2O 22 23 - 27 - Q A Q A i ando~pre percentage wise of the produced gas for fuel and power on theplatform, and we run into a deficit situation starting in 1974. So, Mr. Giles, ~in preparing these two eXhibits and' the forecast, both of gas production and of the utilization you will be able to make, have you made the same assump- tion that Shell has? 'That is, that a water flood will be conducted here and that it will be Successful? Yes, I have. .. Perhaps before we leave this exhibits, you point out that sometime -- when? About 1970-when? Four. '74,. additiona~ gas will be needed. Are there sources from which..~ you feel that you Will be able to obtain gas after that date? 'Yes, we have a source umder the Chakachatna acreage. The ~ gas well gas Supply, the shallow sands, and suffi- cient reserves to accommodate all four platforms in the field. Now in addition to the utilization which you can make of this 'gas -- well, first, before, that, if you d0 convert all. of this equipment for 'the utilization of' thegas that you show 'on your Exhibit 1, will you then have converted all of the equipment that y~ou would expect tO be o~ that platform to gas' as the fuel? R & R COURT REPORTER8 27T-471:~ ANCHORAGE, AI. ASKA · , AGO 85171~ 11 12 ,13 15 16 18 19 20 21 '22 A Q A - 28 - Yes In other 'words, there won't' be 'any further use for it on · the platform? Not to our knowledge at *this time. · Except of course for the gas lift. You do plan -- We have the gas lift compressor here· That's already converted. Do you'-- well, has Pan. America~ attempted to find some means of consuming the rest of the gas which will-be- left after you've achieved maximum Utilization on the platform? Yes. What possibilities have been considered? We have entered into certain preliminary negotiations between the Chakachatna and the SAS groups with Union Oil Company. concerning 4isposkion of produced gas to Union. We've got two problems to overcome however· Can we justify first of all getting the gas hauled to shore for a possible sale? This may require additional-com- pression to do this, which is costlY. Another problem is the fact that the -- the six years shown on Exhibit of excess produced ~as, after we have used i~ for the purposes shown on Exhibit .1, show that this is a very short'life duration for a contract for sale, as contraste~ to the usual 20 to 30 year contrac~ that you have for R & R COURT REPORTERS · II~l INE~r EI~H?H A¥~'NU~ m ~UII'~ B ~77-4713 ANCHORAGE, ALAOKA , AGO 8517].5 10 11 13 14 15 19 2O 21 - 29- gas°~ell gas. Now Phillips Petroleum Company has ex- pressed an interest· in making an offer for the produced LUG gas for fheir/plant.. We do not yet have an offer from Phillips but we have assurance in writing that they will tender this offer within, the next 30 to 45 days. Now the prospects for disposition of produced gas are not bright. And this is because of the rather small volumes that are available for that short period of time that ~I just showe~ you on Exhibit 2. The low pressure of the gas which will require costly compression; the composition of the pro- duced gas, which unlike the dry gas well gas, would re- quire some treating first. These are the reasons a utility company wouldn't be interested'in this casing head gas. T~ere are two additional factors the utility company would look at very seriously as being a deterrent and these-are that there Vs no constant rate Of gas. You 'can see that after peaking in 1968, this year, the gas -- excess gas available declines at a rapid rate° Another factor that would be· deterrent to a utility is the fact that what if some oil tanker shortages develop to where we had to cut back on oil production because we didnVt have enough tankage to take the oil to market. This would interrupt the gas supply for a utility company. So all of these factors do not make the prospect, for disposition of ~produced gas very ~right. R & R COURT REPORTERB lEE WE~T I[leHTH AVENUE 277.471~e ANCHORA(~I~, AI.AIKA AGO 85i716 · 3 10 11 18 2O 23 25 Q o,~ Now we even investigated for the Chakachatna-SAS groups a liquid extraction plant on shore to remove the LPG's~ the liquifted petroleum gasses from the produced gas. We just completed 'this study and we have rejected this venture as not worthwhile because it is uneconomical But more important for the subject matter of this hearing today, what to do with the gas, bear in mind that even if a liquid extraction plant were feasible, what do you do with the tail gas out of that liquid extraction plant bec.ause you have almost as much tail gas to do something with as the incoming gas to that liquid extraction plant so it wouldn't cure the, problem Which is the subject of · this hearing today. Now we even looked' at storage in the shallow gas or water .,~sandso The cost to compress the gas to put it away in shallow ~:sands would be in the order.of a million dollars but there's a very grave safety risk inwolved because of the hazard to the blowouts, possible blow, outs. The recovery of such stored gas is very, very uncertain, and gas stored'in shallow water sands could contaminate the water sands° Do you believe that it's feasible to store this quantity of gas and have it available for future use after you"ve passed that time in '74 when you need gas from another source? .COURT REPORTERS WEIB'r EIGHTH AVENUE -- I~urrE B 277-471S . ANCHOI~GI[. ALAtlKA , · AGO 851717 '13 15 19 2O 2! 22 23 25 q A - 31- No,°~r the reasons I've just given. Simply it costs more than the gas is worth to do that? That ' s · correct. And also the safety hazard. What about injecting this produced gas back into 'the formation or formations from which it was produced? H'~s that also been investigated? · · It has. In simple terms right now we are producing a volume of gas and a-volume of oil.;'~I've shown on Exhibits 1 and 2 that we're using -- we expect to use shortly a third of the produced gas for our equipment on these two platforms, so we only have available to inject two-thirds of one volume. We're taking two volumes out; we can only put back two-thirds of one volume. So there.7:s not enough produced gas available at Middl'e Ground Shoal to justify compression costs to inject this produced gas. Now fur- thermore the return of produced gas would not maintain reservoir pressure. The situation is~ rather comparable to· the law of diminishing returns. We're losing energy faster in the reservoir than we are able to replace that energy economically with return of produced gas. T. here~s ahother factor involved. Middle Ground Shoal th.e reservoirs are long and narrow, and such a reservoir .configuration is not condusive to gas injection because the gas would 'channel through the reservoir rock to pro-' dUcing wells far. too quickly. Now~,~look. at the other side R & R COURT REPORTE~RS IIII WI~IT ItlGHTI4 AVIPNUI~ -- iui'rl~ !1 · 77-47 ! 3 ANCHOII. AQI; AI.AIKA AGO 851718 l0 11 1§ '16 18 2O - 32 - of ~ coin. Water injection would be 'about one-ninth the cost of gas injection. Furthermore, oil recovery should be higher with water injection because the mobilit ratio, of ~water to o~1 is .16, 'quite favorable for effective sweep efficiency. Now on the other hand, the mobility ratio of gas to oil is 3.3, and this is quite ~nfavorable for effective sweep; that the gas ~ould be expected to channel .through.the much more vis. cous 'reser- voir oil, leaving a' lot of that reservoir oil untouched and therefore unrecoverable. Now let me elaborate a little bit on this mobility ratio. .It's a little hard to conce~iVeo When I say the mobility ratio of gas to oil is 3.3, I'm saying the,gas is 3 1/3 times more fluid, more mobil than the more viscous Oilo It's ~rying to push the oil but being so mobile it would tend to carve through the oil or channel through the oil, through the paths of least resistance in a reservoir rock. What we'~re looking for in the way of a mobility ratio is some- thing less than one to one, which water to oil represents when I said .16o It's about like molasses trying to drive water. Molasses could effectiVely drive water, but reverse the~situat£on and try to get water to try to dr~ve molasses, it would do like the gas and try to~ carve and channel through. Now there's another' reasonw~hy water injection AGO 851T19 10 ? .Q 2O 22 A 25 - 33 - seems much preferable at Middle Ground. Water injection will maintain reservoir pressure, and this like Dean Allen says for Shell, will stabilize the gas-oil ratios. It'll prevent an increase in produced gas volumes, and it'll make the most efficient use of the remaining gas in the reservoir as reservoir energy. Mr. Giles, before we leave these two exhibits, if there iS --it~if our assumption that there is in the field itself a sufficient' gas supply proves to be incorrect, are there other gas energy supplies in the Cook Inlet area which could be used to make up this deficiency? Yes. In other words, the securing of additional fuel after that period will not be 'any problem? It is not .expected to be at all. Let me ask you this, Mr. Giles. The statute,a~nd I'm re- o ~vading now from Section 31'..:05,170, among the various definitions of wa~.te , ll-h, it says that waste is the escape ~lnto the open air from a well producing oil or gas, of gas in excess ~f the amount which is reasonably necessary in the efficient production of the well. At the present t'ime at Middle Ground Shoal, is there emcapin into the open air from any well producing oil and gas an amount of gas in excess of the-amount which is teas necessary in the. efficient product.s!on o~ that well? COURT REPORTERB W1~1' EleHTH AVENUE -- SUIT~ B 277-4,7 ! ~ AN~O~OE, AGO 85,17,20 ly - 34 10 12 13 15 '16 1"/ 18 .19 Q Q 2O A ~.~ q 22 No, o~cause all the §as is being produced with the oil im solution gas in the reservoir and solution gas and the oil in the reservoir are ~nseparable companions. You cannot produce one without the other. If we 'did not _have this solution gas we would not haVe oil production at Middle Ground Shoals. As a matter of fact, since some of the gas is being utilt zed for fuel, isn,t ,the amount of gas which is escaping into the open air less*'~ than* the amount which is reasonabl~ necessary in the reasonable production'of the well? Yes. And will it remain less than that amount throughout the life of the field? Yes. · · Both you and Mr. Allen, Mro Gil, es, have made .the statemen! that this gas is p~oducing the o.il'~', that is, moving through the reservoir and up the well bore. Does it actually do. work and lose energy in the process of doing it? It does just that. And that, ·of course, accounts for its relatively lower value. It has expended a lot of the,energy that is in it, when it has produced the oil. . Precisely. Could you 'give. a comparison of what. you'reitalktng about R & R COURT REPORTERS ~11~1 Wirier I*IGIHTH AVE:NUB -- IIUErE B 277-4713 ANCHORAGt, AI. AIIKA AGO 851 7'21 10 13 16 17 2o 21 9.9. - 35 - that-mmybe would explain it fn terms more familiar to' a layman ? Yes, I think so. I think We can d~aw a comparison that will put this in pretty'good perspective, and'the paral- lelism is this. It's a parallelism to the beneficiai use of solution gas as contrasted to the use of water to generate electrical power. The. physical energY' fOr the pressure of the water behind the dam. generates electrical power, much in the same fashion that the solution gas in an oil reser~o£r.under pressure provides the energy to produce that oil. Now we ,call this a primary benefi- cial use of. the gas hndthe wat'er in the two cases cited. Ail right. Now once beyond the electrical power site downstream in the ri~er~- the wat'er may have some addi- tional use, perhaps for irrigation, maybe other industria uses. It boils down to a business decision. Economics. · Will the Cost to pump the water from the river for irri- gation be economically worthwhile? If the Water needs .some treatment ,for ~ndustrial' use, will the cost of '"treatment be economically .justified? Let's assume that it will, and we use the water additionally for one of _.. these purposes. They'll use some of the water .for these purposes just like .we are using 'some of the gas -- produc4 gas on the platforms for power and fuel. Ail right. Let's take the comparison a li~'tle further. C~n all'the m & R COURT REPORTERS AGO 8517,?-2 B~B WI[~T I:I~HTH AVIfNU~,.. IlUll~ B · · 277-471~ ANCHOI~%GE. ALAIKA Z0 13 15 Z6 18 2O 22 - 36 - river water be used? Probably not, because as we all know, the rivers do eventually end up in the ocean. Ail right. By the-same comparison can we use all the re- maining produced gas once again? Probably not, even though, we are continuall~;/sea'rching for markets to pro- fitably dispose of this gas. So in summary .everything has a dollar sign attached to it because to do anything, whether it's my personal investments, your personal investments., my employer's investments or investments made by the State of Alaska, the undertaking m~st generate a profit or have every reasonable prospect 'of generating a profit.. Q (To the Committee) May I offer these two exhibits, Exhibit One and Two? CHAIRMAN: Exhibits One and Two are accepted as evidence in this case, if therets no objection. MR. RUDD: If there's no objection, if I might als'o move in'to the record, the three exhibits introduced by Shell. They were numbered One, Two and Three alSOo CHAIRMAN: I don tt have any numbers on the ones we have here. Perhaps at such time as we take a break we can mark them. ~4 R. RUDD: They were introduced with the map No. I, the Graph No. 2 and~the schedul~ was' ~- ~ : ' .' · .CHAIRMAN°,~Let's label them A, B, and C here 'so we won't get them confuse w'i~h me on~s we ~lrea.'dy have;,'.' Are yo~ ready for a break? (At i0:45 a.m. proceedings were recessed until 10:55 a.m. (ON THE RECORD) R & R COURT RIZPORTER~ ' · ~B WEET EIGHTH AVI~NU~f ~ ~UITE B 277-4713 ANCHORAGE, ALAOKA AGO aSL 72,3 10 11 17 - 37- CHAIRMAN: To straighten out the problem of exhibits, we'll accept the map on the w. all as SAS exhibit 1, the ~raph showing total production her gas available lease fuel as SAS , exhiblt~ M', and the tabulation of status of various gas equipment installed as SAS exhibit 3. Then the 'tabulation of gas equipment submitted by Pan Am, Pan American Petroleum Corporation, will be P. an Am's exhibit 1, and the graph of .produced gas and total gas total fuel consumption as Pan Am's exhibit ~2. Now, Mr. Swan? Mr. Rudd? MR. RUDD: I believe ~we.have' nothing more to offer on Direct testimon'y and the witnesses are available for questions. CHAIRMAN: Then I believe at this time the Committee will proceed' to question the witnesses° Mr o Marshall? MR~ MARSHALL: I'd like to ask Mr.K~'~er a question. You mentioned that a certain amount of gas is being used for de-aeration of injection fluid. Could you briefly describe the 'process that ts involved there? MRo~EL~ER o~ one of the basic considerations in water treating or processing for preparation for injection is oxygen removal for corrosive reasons, and essentially what.this equip, ment is a countercurrent exchanger With the water flowing in at the top, coming down through some bubble trays, and the gas · coming up th~ougha the water, and the gas absorbs the oxygen· that is dissolved in the 'water. MR. MARSHALL: Where is that thermal energy required? -, ~GO 85~.724 Is-this just in circulating pumps or is this there actually~a fuel used there to -- MR. KOBLER: No, the gas is put in the bottom of this tower, comes up through absorbing the oxygen that is dissolved in the water, and then the effluent.at the top which is gas with the oxygen dissolved with' it is a pro. duCt which 'must be disposed of. It' cannot be Utilized because -- for the same reasons that the oxygen is removed from the water, to utilize this further. MR. MARSHALL: I see. Then there is actually affinity of the..natural gas -- MR° KOBLER: That's correct. · MR. MARSHALL: -- to dissolved oxygen? MR. KOBLER: That's correct. MR. MARSHALL: Thank you. Bart, you made a. -- I'd like you to correct me if Itm saying this incorrectly° You made a ~st'atement, I believe, that if the liquids were stripped from the · · Middle' Ground Shoal gas, that. the economics of this operation would-- I believe the word was "miserable? or "not quite make it -- I'm not sure what your word there was -- but you mentioned with reference to the fact that the tail gas would be in effect wasted even though the liquid would be stripped. Is this correct? Was your statement -- is .my statement that -- I'm quoting you the operation would 'be uneconomical to strip out the liqu$d~ not- withstanding the fact that the tail gas would be, let's say, wasted? l0 13 R COURT R£PORTER~ ~ EIQHTH AVENUE -- $Ur11 E 277-471~ ANCHORAGE, AI. AIKA AGO 85].'725 10 11 13 14 15 16 17 18 19 2O 22 - 39 - MR. GILES: Yes, I said the feasibility of a liquid traction plant was investigated for the two groups, and we dgter- mined -- concluded that it would be an uneconomical'operation. Then I went further and said that you them still have a problem with the tail gas. You've got to do something with it. You"ye -- because it's practf~ally the same volume as the incoming pro- duced gas to a .liqui~ extraction plant. MR. MARSHALL: Now I have a -- some fixation to the ef- fect that there was about 40% of the gas on Middle Ground Shoal could be stripped down. In other words, 40% of the volume could be removed by a gasoline strip~ing plant. Am I correct in that . statement? Is this approximately correct? MR. GILES: Tom, I d0n~t know that percentage figure. I don't have that available. ; MR. MARSHALL: Thank you. CHAIRMAN: Mr. Vonder. Ahe? MR° VONDER AHE: Mr. Allen, what is the bubble point of the gas on Middle Ground Shoal? of tha-- of the oil? MR. ALLEN: Bubble point pressure? MR. VONDER AHE: Yes. , Ah - in the MR° ALLEN: /80-acre -- a con§lomerate section it's 1477. 1477 PSI. There's a sli§htly hi§her bubble point pressure in the upper zones. ~ don't ,recall that number ri§hr now. CHAIRMAN: Mr~. Gilbreth? MR. GILBRETH: Dean, from your p roj~ections of production R & R COURT REPORT£R8 liB W~I"I' B:I~HTH AVENU"' -- 1113~1'11 ~ ~'?']'-471 · ANCHORAGE. AI.AIKA AGO 85 ! 72 6 - 4O ! and everything, how soon.do you anticipate reaching the bubble po int? MR. ALLEN:. Well; .this particular.projection of product does not reach the bubble point. 5 MR. GILBRETH: It does not. 6 MR. ALLEN: We maintain pressure above the bubble point ? throughout the rater flood life. I. might mention-at this point that we're on the order of 2300 to .2500 pounds at the reservoir now, but here I'm talking principally of the water flood life. MR. GILBRETH: The increase 'and' produced gas volume shown on both the Shell curve and the Pan Am curve occurring in the 12 near future, is this due onl'y to additional development in the 13 field? 14 MR. ALLEN: Yes, plus response 'from the flooding itself. .15 Eventually. we should be able to produce more oil, . higher rates, 16 · b y injection of the water, and as you produce more oil of course , 17 the gas comes with it. 18 MR. GILBRETH: In the case of the shell exhibit' can you 19 give us an idea of the volume of .gas, the volume of surplus gas, 20 'available over to the point Where you have a defioit? '~'! MR. ALLEN: Over here? MR. GILBRETH: Yes° What the total volume is, the magni' '2 8 10 ~ tude? MR. ".ALLEN: It ts about a third of' the total. A little more. About 16, about 16 to 18. · COURT REPORTERS WEJEI' EIGHTH AVENUE -- IUITE B · )77.47 ! 3~ 'ANCHORAGE, AI.,AOKA AGO 8 5'17~.7 2 4 9 11 16 18 - 41 - MR. GILBRETH: 16 billion? MR. ALLEN: That's the total number. MR. GILBRETH: .I'd like to ask Mr. Giles the same questio Bart, do you know what the total volume represented of surplus gas under your curve is? , MR. GILES: Not a specific number, but it would be in the same ratio as Shell just, mentioned.. · MR. GILBRETH: I see. Mr. Giles, in yours, testimony you indicated that you had looked at the feasibility of reinjecting the. surpluS .gas at this time, and this wasn"t feasible. Can you give us any idea of why it isn't feasible economically? ~ MR, GILES: Well, there's not enough of it first of all, to maintain reservoir pressure. , MR. GILBRETH: When it's 'in'storage? MR. GILES: Right. It costs nine times as much to inject gas as .it would to inject water. MR., G~LBRETH: Well, now you mentioned that-after '1974 that you had .shallow gas sands to supply your-needs on the plat- forms. Is it not feasible to inject this gas. now into the shallo~ gas sands for storage for later use? MR. GILES: That's a very good question. The obvious answer there is the sweep efficiency of gas. The mobility ratio., the mobility con.trast is unfavorable for gas injection, whereas · for water injection recovery of oil should be much better. MR,-GILBRETH:' But I'm -- what I'm.asking, why isn't it I~ll WlB~T IIlQHTH AVlENUI~ ~ Iug'rig B · ~'77-471S AGO 851728 AN¢I:.IORA~K, ALAOKA -42 ' feasible to inject the surface gas now into a gas reservoir to · use after 1974 for yo..ur fuel and other uses? MR. GILES: Well, we have an uncertainty as to .how much of that gap we could get back, first of all, how much we could recover, The percentages on gas well gas that's stored, let's say, by a utility company, can vary from thirty to ninety percent recovery when you go to get it back. So the cost of putting it in shallow gas sands would exceed the value perhaps, that you'd get. ir'back for and use it. MR. GILBRETH: I~ analyzing your -- the economics of s tripping the gas and so forth, what kind of a volume 0f .LPG's are we looking' at that's being blown in the air each day now? MR. GILES: I don"t .know. I was trying to look .that up ,and I am unable to come up with those f. igures. That's parallel to Tom's question earlier. I don't have that available. We just .figuredth'at if we could economically extract some of, the liquids ~ from this produced gas, at least that would be a ~beneficial ex- traction perhaps, but we find that this is not so. MR. GILBRETH: Early in the testimony, I've forgotten -- 'whether it was Mr. Allen or Kelber, the statement was made that 21 the original line could not carry gas to shore. Are lines in- 22 stalled now from 'Pan American's ~' al'er platform to Shell's Plat-~ form A that will permit the transportation of gas between those two platform~? MR.-GILES: Yes.. AGO 8§1'/29 10 12 13 16 18 2o MR.~ GILBRETH: And then from Shell to shore to -- MR. GILES: Shell to Shore. That's right. MR. GILBRETH: In yoor studies then you concluded that it's not feasible to r~inject the gas; it's not feasible for otl recovery purposes; it's not feasible to reinject the gas for storage 'purposes, and it's not feasible to move it to shore to extract the liquids and there ts such a small volume that there's no market for it on shore. Is that -- ?. MR. GILES: ~All of those~-~are correct~. MR. GILBRETH: And then there's a short life too. MRo GILES: Yes, sir. CHAIRMAN: Mr. Marshall? · MRo.MARSHALL: I ·would like to direct this question to · -Dean 'Allen ,because it follows one ~of his predecessors. In the testimony of December 1st, 1966~ the statement was made that the- bubble point was about 2000 PSI. If I tm not mistak~n~, the testi- mony t0day~ i~ndicated it was 1471 pounds. Could you explain the .discrepancy ~here, Dean.? .MR. ALLEN: As I remember reading the'testimony, Mro Muehlberger said it was around 2000 'pounds, and at that particula: , time'I~m not absolutely sure of what he was referring to but at that particular' time we had a number of PUT samples. These are · pressure Volume temperature 'laboratory samples that had a range of bubble points from 70'0 to about 1900, something on that order, and when .w~~ were finally able to ascertaiq~ wh$ch ones were correc R & R COURT. REPORTERS ' ~B WEIIT Ei(;IHTH AVENUE -- I;UI11 I 277.471:~ ANCHORAC~E. ALAOKA AGO 851 ~'30 10 !8 21 22 25 - 44 - and which ones were incorrebt, 1477 looked like the proper one for the lower zone, and I believe the upper zone is approximately -- well -- 1900. MR. MARSHALL: I see. But this -- we're talking about Hemlock production. I believe that Dean has really explained the discrepancy between the approximately 2000 pounds which was · used in the .hearing of November of 1966 and the statement that was made to day of 1471 pounds, there being about a 500 pound discrepancy, but this is because one sample referred probably to the -~ a different pool of our seven designated pools in Middle Ground Shoal. MR. ALLEN' I'm suggesting. I don't know what Mr. Muehl- berger actually had at the time he made that statement. You .~cognize, of course, that the bubble point pressure always refers to a specific datum, and the datum that we are using now may be slightly different, from the one we were°using at that time. M~..MARSHALL: Thank you. MRo~GILES: Gentlemen, for the record -- Bart~Giles again i'd like to elaborate just briefly on the questions that have been directed concerning the liquid extraction plant and the 'feasibility o~ it, ahd also my testimony concerning the Union offer that's been received for possible disposition of produced · gas, and the one we expect to receive from Phillips. Ail three of~ these involve more than Middle Ground Shoal. It ~nvolves Chakachatna gas and so forth from the Granite Point. Field, as ~el ! , R. & R COURT REPORTERS" ElK WEBT EIGHTH AVENUE -- EUITE B 277-47 !:3 ANCHORAOE, ALAIKA AGO 8 5173 ], 10 11 16 2O -45- aS, the Middle ,Ground Shoal and south Middle Ground Shoal comp lex. ~ ~ MR. SWAN: Mr. Giles, that's all of the gas that · · know of that would be av~able for such a Plait'or such an offer..IsnTt it? MR. GILES: That is correct. MR. GILBRETH: I would like to ask if the gas --the contracts were executed for the Sale of the gas -- uh -- about how long of time lag" would your best ,,estimate be before the gas would really be sold and processed. · MR. GILES: ~., Probably it would be in 1969. o MRo GILBRETH: Late v69 or early '69 or is this too ~e~ulo se? ~ MR. GILES: This is awfullY hard, Mr. Gilbreth, because contractural agreements do take time° There are certain details and negotiations that must be worked out and then when you consummated that the physical construction -- the ordering and then the physical construction must t,ake place° I can only rationalize~ that perhaps the first half of 1969. cHAIRMAN: Mr. Vonder Ahe? MR. VONDER AHE: What is the relative value of the extracted casing head gas compared ~o gas well gas? Isn't th~ BTU 'content lower? MR,. GILES: Yes. MRo. VONDER AHE: About what perce~,tage would you say R COURT R£PORT£R~ ' Wirer BI~H?H AVI~NUE- ~urrl~ B 277-4713 ANCHORAGE, AI.AIKA AGO 851'732 " 10 '46 - in value ? .... · MR. GILES: I don't .know. MR. VONDER AHE: But that' would enter into the economics? MR. GILES: Oh, yes, very definitely so. CHAIRMAN: Anything further from the committee or the adviso.rs? MR LARSON: I would .like to .ask Mr. Giles, if he has any idea what the GPM content of the. gas is flared. MR. GILES: NO o · ~R. GILES:~. I do not have that 'figure available, perhaps Shell does, MR° LARSON: Is one of the Shell representatives avaitabl MR. KOBLER: I don't have the current analysis available to use at this time. MR. LARSON: Mr. Kobler, you made a statement that the value of gas now is equal to about one percent of the value of the oil being produced° On what basis .was this statement made? MR° KOBLER: I should perhaps clarify that statement, I~ reality now-we feel that the gas is of no value because we have not found a place to market it, If it became a saleable product. based on just an estimate of What its value 'could be. It could be' in the neighborhood of one~'~ percent. However at this time werd have to say. that it 'is not worth anythi, ng in relation to the oil. MR.·LARSON: Well, this one percent, value then would be R & R COURT RE:PORTER~ Ill Wl[~r EI(~HTH AVENUE 10 11 14 16 l? 18 2O 21 29. 9.5 - 47 - after .all operating expenses and everYthing llke that were deduc- ted, I would presume? MR. KOBLER: No, sir, not at all. That would be gross value. MR. LARSON: Gross value. That was all I had. CHAIRMAN: Anything further from the Committee? Then we're open_.~o questions from the floor. I might state we have / · a wire received here yesterday from Phillips Petrole'um Company signed by Leroy Culbertson. Boes Phillips wish this read into , the record? I'll read it. It's actually addressed to Mr. Th. omas R. Marshall, Executive..Secretary, Oil and Gas Conservation Committee. From Bartlesville, Oklahoma "Phillips Petrol. eum Company on January 9 sent the following wire to producers on the Middle Ground Shoals Field: ~As soon as studies now in progress are completed (estimated to be between 30 and 45 days) Phillips will be ready to begin negotiations for the purchase of gas in the Middle Ground Shoal and Granite point Fields, and to complete the purchase contract if mutually satisfactory terms and condi- tions can be 'worked out. We will keep you advised of the progres of our studies. It would be appreciated if you would pass this wire to our production people who are involved with upcoming hearings on gas utilization. Leroy.Culbertson,. Phillips Petro' leum Company.' This is to advise the .Oil and Gas Conservation Committee that the s~bject studies are being"-- and I presume the ~ . word "given'' has been left out -- "a high sriority in a good R & R COURT RE:PORTERB ' limb WE~I' [IQHTH AVENUI[ --IUITE I 277.4713 ANCHORAGI, ALAIKA AGO 85113~ - 48 - Sl-aZ~ effort to develop an additiOnal beneficial use for the gas. Phillips Petroleum Company has heretofore sought and will continu to seek marke~s for Alaska natural gas. We urge that your Com- mittee take nO action~.to.restrict p~oduction until Phillips and possible other prodd, cers have adequate time to evaluate this important ~but complex problem and to carry out the necessazy further negotiations. We suggest that this would be in the best interests of the State of Alaska and producers." Signed, Ler0y Culbertson, Phillips.. Again now we are open ~o~ questions from the' audience. .If t~ere'are,-would you please come forward', let · us know who you are and speak in a distinct voice for the record- ing equipment? Apparently there are no questions 'from the floor. The Co~nittee s.till has no further questions. It appears that--' before we adjourn we'll take a very sh. ort recess to consult here a moment. (oN HECO .) MR. MILL~IAMM: We have just a question or two, and then , we would like to repeat our request' for certain figures that we. haven't be.en able to obtain from you this morning, and leave the' · record open for two weeks, to allow time f~r you to supply us with these figures. Does this seem like a reasonable approach, Mr. Swan, Mr.. Rudd? MR. RUDD:' Yes, that's -- MR. 'MARSHALL: I'd like to address this question to Mr., Giles... Has ther~ been any studies made o',~f the feasibility to & R COURT R£PORTERS" WEN EIGHTH AVENUE -- IIUII'E B ~??.471~ ANCHOI~I~(~E. ALAIKA 735 6 10 12 16 18 2O 21 23 25 - 49 - inject Middle Ground Shoal c.asing head gas into onshore reser- Voirs? Or to. state it otherwise, after proper processing have · · 1' there been any studies made to inject so-Called ~ai gas into reservoirs now Known to exist onshore or which couid be evaluated , for the feasibility of dry gas injection onshore Utilizing the existing pipelines which are, we understand, capable of trans- port. lng gas to shore? · . . MR. GILES: We are investigating the -- in further detail with Union Oil, some of the aspects of their proposal and of course what they do with the gas if we were to reach agreement on dispos~ion of gas with them is certainly their business, but perhaps this gas would be used eventually, for injeC~on .in ' swanson River, and displace some of the Kenai'Field gas that is now being Used for that purpose° MR. GILBRETH: Mr. Giles, would it be possible for the operators to furnish us with any additional information on the economics of this gas injection or gas storage by' utilizing the present produced gas? Could you give us anything in the way of statistical data or anything like that that bears on this feasi- bil£ty? MR. GILES:. Well, I gave you about four or five reasons why we' didn't feel it was feasible to inject gas, and much pre- letted to consider water injection. MR. GILBRETH: I~m referring only to storage now. MR. GILES.' And for storage I gave ~you the figure-that R & R COURT R£PORT£RS EEB WE~I' EIGHTH AVENUE -- BUBTE B 277-47 ! 3 ANGHORAGI[, ALASKA AGO 85 ! 7'36 6 12 !5 !6 18 19 2O 22 - 50 - .. it would~ cost a million dollars in our opinion {~ store the gas . in shallow gas or water sands, so I'd like to ~re-.emphasize the · safety risks, and the blowout hazards of doing this in shallow gas and sands. Because we're not. through with drilling operations/this presents a very severe hazard in our thinking, plus the uncer- tainty as to the recovery of the gas that you might store. MR. GILBRETH: Well, isn't it normal in a gas reservoir that's a~ready gas saturated to have a very 'high degree of re- covery? MR° GILES: Not necessarily when you're storing wet gas, in that type of reservoir. MR. GILBRETH: What about dry gas? MR. GILES: Well, I think the recovery could be expected t o be quite high. MR. ALLEN: Could I address myself, just very briefly to that question? CHAIRMAN: Mr. Allen ? MR. ALLEN:I ~ill have first state that, my experience with gas · storage projects is quite limited, but in all the experience I have had, the gas hasih'een put into a gas reservoir that has al- ready been depleted to a large degree, and it's therefore the gas is .not increas'ing the pressure above the pressures that you might expect, to find in a normal gas field dewe~opraent? If you~vere to try · to..inject gas into a reservoir that already had gas at initial reservoir .conditions, hydrostatic pressures, then you haVe to COURT REPORTE:RS WEb'1' EIC~HTH AVENUE -- ~uI'rE B 2?7-,4? ! S ANCHORA(~I~. ALASKA · · A GO 85 ~[ 73 7 10 1! 13 - 51- I , increase the pressure in that reservoir, and two possible things will happen to you. Y°u'll either force~ the gas into the water z'one and thereby lose a good share of what goes into that water' .zone, or secondlY, you will break d°wni'.~he continuity of the sediments and actually have rupturing of the formation from the escaping fluid to the surface. CHAIRMAN:. I understood that we were going to request · some d~ftnite figures here but perhaps -- MR. SELLINGER": I don't beiieve you asked for any state- . · . merits from any interested parties, ivm prepa?ed~to give you a vet brief statement. · CHAIRMAN: Mr. Sell~inger, I'm doing my best to get state- ments from anybody here. (Laughter) MR.. SELLINGER~ Well, I thought. ~you were talking ~about some cross examination and questions.- CHAIRMAN: Believe me, we want to hear. from anyone in the house that' wants to testify or ~say anything. This ~is very defin£ ly a public meeting and open to all.· MR. SELLINGER: Well, as you 'know my only claim for being an expert is the old-fashimned definition that anyone that's beyond his home base 125 miles is a so-called expert. CHAIRMAN: Is' this a statement of your' qualificationS? (Laughter) MR. SELLINGER: However being 4200 miles away from home, I'd hope that that makes me adequately 'an~old"fashioned expert. R & R COURT R£PORTERS ' I'alll WIE~T IEI~HTH AVENUE'- II,IIT~ I . · 277.,171'~ ANGHOItAGE. ALASKA AGO 85 !.7 ~8 -' 2 !? - 52- The Committee has had an investigation hearing .initially convene on November the 1st, 1966, to the additional beneficial use of gas in the Mi'ddle Ground Shoal oil field, At' the same time all the operators and interested parties have individually and jointl had this matter of additional beneficial use of gas produced with · the' oil under ~onsideration and investigation. As evidenced by the testimony today as compared to the~'testimony on November, 1966, it's quite evident that good progress has been made and is being made at this time by all of the operators of the Middle Ground Shoal Field. In drilling additional wells for the imme- diate purpose of delineating fields, and as is customary in the oil and gas business, of evaluating the producing characteristics the reserves and. other required data necessary to make any mean- ingful analysis of gas disposition; this progress is going on at this time ~with additional wells being still drilled, in the dri~ng stage° A substantial defining of the field is most essential and necessary in such gas disposition plans. Now Alaska Statute Section 31.05.030 enumerates the powers and duties of the department, and paragraph 5 reads "This Department may require the operation of wells with e~ficient gas-oil ratio and water-oil ratio, .and may fix these ratios.." And in compliance therewith the Department has issued its Rule 2159/ on gas-oil ratios. Subchapter 4 of Production Practices. This Rule as stated in the footnote itsel'f of that.Rule implements and inter- prets Alaska Statute 31.05.030, and ,.by. permitting each oil well R & R COURT REPORTERB lie WE~"r EleHTH AVENUE -- IUITE B ANCHORA{IE, AI. AIKA l0 20 22 9.3 to produce at a 2000 cubic' foot per barrel ratio or less, recqg- nizes the primary beneficial .use of gas in supplying the reservoi energy necessary, to' produce such oil. Now it's been referred to by'.a previous attorney that Alaskan Statute, Section 31:05:0'10 in definition, paragraph 11, defines waste insofar as gas 'production is concerned', as being ~a) the inefficient,excessive or impr'oper use Of or unnecessary dissipation of reservoir energy; (b) the operation of an oil .well with an inefficient gas-oil ratio; and .(h) the escape into the ,, . , open air from a well producing oil or.gas o~ gas in excess of the amount which' is reasonably necessary in the efficient production of a well. I~ this Committee. by the adoption of its Rule 21-59 in response to the aforementioned 'and as contemplated by the statutory provision recognizes the use .of ~gas to provide reservoi energy for the pr'oduction of oil as a beneficial use. The Middle , . Ground Shoal operators as a whole realiZes that the total and complete and ehduse of all hydrocarbons :produced from a reser- voir is desirable, They also realize the efficient recovery of the maximum 'amount of hydrocarbons frOm a reservoir is necessary · as well as desirable° 'To su..c...h end and for some time the Middle GrOund Shoal operators have been'developing plans for a feasible . secondary' recovery ope.ration.~ Studies indicate that ultimate re- cov.ery 'of oil can probably be substantially increased by insti- tut'lng a: pressure 'maintenance program using water as an injection .medium. The .economics of such a program'appear satisfactory. ,-, w,,-,. ,,o..,.,, ^,,-,,~,- - ,u,.,.,, t~ z*O' ANCHORAGE. AI. ASKA 7', 10 16 Now there is dispOsition to any ·other market that may be available is also prudent and desirable. Some of these , methods', are (1) supplements to 'enhance recovery of oil for this ~eld· would result in facilities on present platforms; (2) supple- ment to enhance recovery of oil for other nearby oil fields would result in facilities 'on present platforms or offshore facilities; (3) utilization as' feed stocks to plant as a dependable source; (4) storage into other zones or strata .with attending risks and uncertainties; and (5) any combination of the above. It Vs .quite apparent that a reservoir determinatiOn first muSt be m~de followed by a feasibility determination of facilities~ for either a s, ingle field or a much larger area. That first must be determined. Finally an additional ~period of time is deeded to overcome the lack 0f knOwledge of reservoir ch'aracte isti.ds.. Contractual requirement for a market 'and supplies from either a single or a combined area.~herequired facilit, ies for either a single or a combined area, and the time necessary for physically COnstructing such facilities. Now the progress made in November of '66 was adequately giv'en't~o this Commission at that hear'!ng. 'The progres made in this progressiwe hearing' at this 'time indicates a further development of all these factors. I have no doubt in,.my mind that any additional progress hearing that you may ask in the future, there.will be. additional progress made. ~In all probability the~ entire matter will be cleaned up and taken care'of. Therefore I · R COURT REPORTERS WE:irt' t~IOHTH AVWNUI; -- IU~ ~B 277-47~3 ANCHORAGE, ALAeKA AGO: 8517/t! i - 55- urge the Department as well as the Committee itself to allow the operators additional time to clean up its house, so to speak. The last few days I've been hearing reports about the adversary nature of these hearings, and it is. to be highly regretted that 5 the rumors from those who do not know or are not familiar with the business call this an adversary nature. Me? I'm not mad at.nobody. 'I'm a neutralist.' I think 'that the cooperation be, 10 .11 tween the State officials in this state and the oil industry .in general cannot be compared'to anY other State. in all of its period of.existence,. ~and in the. interests of giving--.(To Mr. Swan.) go 'ahead, if"you have anything t°, say. (Laughter) . MR. SWAN: We all know Who..Mr~ Sellinger is, but Can the record'show that he.represents Skelly Oil Company, and that they' are a member of the Chakachatna' group.' I think he was~ go{ng to saY~ that then. , 18 19 2O 22 25 CHAIRMAN: The record will shoW. MR° SELLINGER: In the interest of accommodating betWeen one lawYer to another, I' would like to informa'lly give the Assistant Attorney General some background material of the trans- formation of this very problem in other states and'.how it was handled, and I have underlined some and I feel you will find it. h'ighly beneficial. I would like to close With the admonition again' that let us not lose the cooperation we have both .of us .. justly ea£ned in the past few years in 'working out cooperatively 'our problems. ~.~, R 8; R COURT REPORTERS' EEl WElT EI(]HI'H AVENUE -- EUITE B ~77-4715 ANCHORAGE, AI.,ABKA AGO 8517~2 ? 10 1! '' l& 2O CHAIRMAN: Thank you, Mr. 'Sellinger. Mr. Armstrong? MRo ARMSTRONG: W. A. Armstrong, Sinclair Oil Company. I would like to first state that like Skelly we are of course a part of the Chakachatna group, and any statement that.,I could eloquent make after Mr.. Sellinger'sftestimony would be somewhat redundant. · . However, I 'would like to inject, in the record that. in particular in light'of the huge financial investment involved, that Sinclair committed in Middle Ground, and the necessity -- the true necessi ty for the long-range finamcial.success of this and other Cook Inlet production, Sinclair must go on record as concurring wh~le- heartedly with Pan American's and Mro Sellinger's testimony. Now we. feel that 'as operator from the inception of the field Pan American has~ performed a militant and expeditious job-of handling the Middle Ground Shoal gas situation. We· 're satisfied that the progress, is everything that we've expected to date, and we feel there 'is going to ,be a ¢on~tinuation in the months ahead to evaluate and work with the Committee on every aspect of put- ting this gas to beneficial use°' cHAIRMAN: Thank you, Mr° Armstrong. Are there other int eres ted par.~ies? MRo SWAN: We might want to make just a brief closing statement° Could we have just a moment? (paUse) We've had our huddle° We're ready to close the case° CHAIRMAN: Ail rights Mr. Swan. Apparently nO one else has any questions. Make your closing statement. R COURT REPORTERg WI[BIT IU~iHTH AVI[NUE -- gUITE B ANCHORAGE, AI. AIIKA A GO 8 ~ ri 7 4,3 2 18 21 22 25 MR. SWAN: We have no closing statement. Unless the Com- m£ttee has some further questions, we feel we have shown you . w,e.'re making beneficial use and re-use of all of ,the. gas that we can. ., CHAIRMAN: Hearing .nothing further from anyone then this meeting is 'adjourned. END OF HE~RING COURT RE:PORTERB WE~T EIGHTH AVENUE -- SUITE · 277-47 ~ 3 ANCHOFIAGI~, AL.AIKA AGO 8517z~ 10 11 12 13 15 16 17 18 lg 2O 21 25 E ON ~R-T~-- PLARE H ARING MIDDLE GROUNDS SHOAL ~:~ & l~ DEPOSITIONS 825 WEST EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, ALASKA 85.186O 10 11 12, 13 15 17 18 2O 22 PROCEEDINGS MRo WILLIAMS: This will be a recording of the case or hearing being held on November 1st, 1966, in the Division of Mines and Minerals office in Anchorage, the case being the show cause on North Flare at Middle Ground Shoals field. According to my time which was set more or less be ... the hearing calls for the taking of testimony ... the question of Showing why considering all warnings .... i am the Fire Marshal's executive secretary. We advertised this hearing on October 21 ..WhiCh is sufficient legal notice for a hearing of this type "which is not a general statewide application° We are appearing here today pertaining to gas being produced at Middle Ground Shoals° The statute on the subject is as follows: Section 31:05:020° State prohibits the wastes of oil and gas in the State is prohibited, and then over here under defi- nitions, Section 31:05:170,. Subsection 11~ waste means in addition to ot'her~ it means physical ,i,.~'~.aste and includes (a) the inefficient excessive or improper use of or unnecessary dissipation of reser- voir energies; and the locating, placing, drilling equipment operating off the.o.of any well or gas well in a manner which results or tends to result in the future quantity of oil or gas to be recovered from the pool in which they under operation conducted in accordance with good oil field practice .... MR.RUDD:Gentlemen, the committee has called this meeting as you understand for the purpose of looking into the use of gas in R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-47~3 ANCHORAGE, ALASKA AGO 85186! 10 11 12 18 14 15 16 17 18 19 20 21 Middle Ground Shoal. Now this is ... and it was announced the hearing was to consider an order requiring that the gas be put to beneficial use. We feel that the main function of the hearing is to review the e'fficiency of the production practices of the presen producers on Middle Ground Shoal. A representative for the opera- tors involved has provided more technical and specific detailed information on the production practices there. Each operator who 'has a platform being built or similarly being built will continue to build for some time. Most companies are producing from. o.from essentially the same rate of work, their production practices, their drilling practices; all of their difficulties and problems are very much in common. Certainly 'we all consider it somewhat representative for the companies to be in continuous touch with each other, exchanging ideas and information about the drilling and production practices, about the reservoir .... which they' are dealing with. In addition of course this body here, the Division of Mines and Minerals, keeps in constant touch with the industry and receives production statistics and information on a ... This hearing seems to be an appropriate time and place to summarize the production situation as it stands now on Middle in Ground Shoal. In presenting such a sun, nary we've asked/this conne~ t ion for each of t~he operators to submit such .... present such statements as they 'wish to make before we present them to the com- mittee. In order to avoid, some repetition we'll make available to to the com~nittee a full panel of people involved on behalf of the R & r DEPOSITIONS 825WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA AGO ti51 ~162 10 11 12 13 14 15 17 18 19 21 -4 - operators so that persons best able to clear up questions will be able to do so. The operators have agreed and it's thought that you'll agree when the hearing is complete that the gas being produced 'with the oil from Middle Ground Shoal is being beneficially used. I believe there's no question that the gas produces the oil in so- lution. Gas is not itself and therefore does not constitute dissi pation of reservoir energies. It 'will be shown that the gas-oil ratio is a modest one and that it's not expected to increase sub- stantially in the near future~ It will be shown that the field is in a rather early stage of development, with new' wells constantly being drilled, and that the production of gas with the oil will increase--will increase in direct proportion to the increasing oil production. Now it's well known and well established that--and it's specifically recognized in almost every oil reservoir there is bound to be a certain amount of gas produced. It's also well knowr that this gas serves a very important function in aiding the move- ment of oil to the reservoir and lifting it to the surface° The ' IR slg ificance of this chara.~teristic of dissolved gas cannot be underestimated and it is clearly in itself a primary 'beneficial use of the gas. Now it might be noted here 'before putting on our witnesses to testify in more detail that these gentlemen who will testify and others employed by the operators have a primary function for gheir R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE. ALASKA A GO 8 5! 8 63 10 11 13 15 17 21 - 5 - employers of determining economically the most efficient~ the most beneficial use of the gas and the most efficient production prac- tice. It is their job to study and adopt any feasible method of .... They have a moral responsibility ... the operators who from a financial standpoint seven times more...and they are constantly sifting out and attempting to utilize the most beneficial produc- tion practices...Pan American may have a brief statement and then we will call our 'witness for you. MR. SWAN: Well, as Mr. Rudd pointed out, Pan American and Shell are the only two operators who are now producing oil in the Cook Inlet. We operate on platforms for the Chakachatna group which includes ourselves, Skelly, Sinclair and Phillips. Our problems are the same as Shell's. The only difference between the two is they've been operating a little longer. They have a few more wells° But I think it would be obvious to you gentlemen that we have consulted on this before and in order to avoid duplicating our speeches we tve sought to cooperate interpolation of the presen tation here° We have Pan American witnesses here also. We're pre pared to answer any questions. BY MR. RUDD: For the record would you state your full name? My name is Eugene Muehlberger~ and I'm the division ex- ploitation engineer for Shell Oil Company. And you've been in Alaska for how many years? Almost four years now. R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 17 21 -6 - And during that time you've worked more or less on Middle Ground Shoal? Primarily on the problems of Middle Ground Shoal. Would you describe the physical situation on Middle Ground Shoal..oproduction factors? Well, first of all for some clarification here we might go into a little bit about the nature of the reservoir at Middle Ground and how we understand it at this early date. Gas availibility in the oil depends on the pressures and temperatures and the availibility of gas, if it's availabl~ How much gas can be dissolved into oil is function of pressure and temperature. By crude oil that is said to be saturated with gas among pressure and temperature-- it is saturated°..Upon slight reduction in pressure gas evolved from the oil or is released from solution, Con- gruously if no gas is released from the oil upon a pressur~ reduction the oil is said to be undersaturated. When a saturation statement indicates a deficiency of gas present in the oil also indicates that there is no free gas cap. At Middle Ground Shoal now the zonal pressures range be- tween, say, 3500 and 4500 PSI pounds per square inch and the bubble point is less than 2000 PSI; that is, the bu'bbl point at that point at which now a pressure reduction from that point gas would start to come out of solutions from the oil. At Middle Ground Shoal however we are R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANC:HORAGE, ALASKA 85! 86.5 10 11 13 14 15 17 18 lg 21 working with a very undersaturated oil and we've got several thousand pounds of pressure...At this bubble point in the early stages of completion in which no free gas is being evolved from the oil in the formation. The gas-oil ratio here is in the neighborhood of 400 to 500 cubic feet per barrel, and as far as these are concerned this is a very low gas-oil ratio .... how undersaturated this oil is. There's very little gas dissolved into this oil in Middle Ground. This gas-oil ratio -what is representative of the 400 to 500 cubic feet of gas that is evolved per barrel at the surface in the. barrel of oil coming up towards the surface bringing this four to five hundred feet of gas along 'with it. Okay, now if we take and drill a 'well into this reservoir° ..'what we have in effect, 'what we've done i~ effect here, is reduced the pressure at the well at the formation face which then allowed high pressure oil to flow towards the 'well bore, and then be produced to the surface...draw the pressure down sufficiently so that you can start the oil flowing toward the well bore and allow the oil to come to the surface° The oil is flowing at Middle Ground by a combination of physical factors here. When we reduce the pressure, the pressure that was on the rock, on the interstitial 'water, water that is in the for- mation, as 'well as the oil, is reduced~ That in turn al- lows it to--the water and the oil to expand so that the R & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 29. 23 expansion of these then forces the oil that's in the poro- sity to the well bore. Then as gas then is released from the oil at a pressure below 2000 pounds, bubble point pressure, it in turn, because there's now gas .... it can't expand rapidly and it also forces oil through the pore space to the well bore. Gas in solution reduces the vis- cosity of the oil and allows it to flow more freely throug~ the well bore. And then as I say when the gas breaks out of solution its ability.:to .expand .rapidly sends the oil from the pore space and into the well bore and then allows it to seek the surface. The gas in the well bore comes up the tubing string° Again there's more pressure at the bottom of the tubing string than there is at the surface and where the gas comes up it in turn expands and forces the oil to the surface, so its primary function here is-- this beneficial use is to get this high value crude to the well bore and to the surface° It's what at Middle Ground Shoal the - is more or less the manner in 'which the oil is now being produced. We 'were in the situation very early in the stage° We feel that there'~s not very much really known about this reservoir° The limits have not 'been de- fined. Only a small amount of pressure information has been taken at this time. The field's been on production for less than six months. Continued production during that time .... so 'we would feel then that under these conditions R & R DEPOSITIONS a25 WEST EIGHTH AVENUE- SUITE 277-4,713 ANCHORAGE, ALASKA AGO 851867 10 11 12 13 14 15 17 19 2O 21 23 25 at which we are producing the field now the beneficial use of the gas is fully utilized, getting the high value crude to the surface. No waste of reservoir energy is taking place in the formation. The gas that is produced at the surface, the gas that is in solution in the oil, there's no 'way of getting around the fact that that oil--the gas that's in the oil, there's no way of producing oil without also producing gas° Every effort is being made on the part of the operators to utilize this reservoir energy, an~ no free gas is being produced from the reservoir. No gas cai here.; no pressure is being bled off from any of the reservoir...by, as I say, producing free gas from the gas cap. In the utilization of this reservoir energy we are attempting to maximize, fully utilizing this gas and the energy that's present. We are trying to maximize the re- covery of oil from the field° If I could just reiterate there that the current production practices, there's no waste of reservoir energy taking place. BY MR. SWAN: Q I have just one witness. Would you state your name, pleas Sidney B. Richards. And by whom are you employed and what position do you hold~ By Pan American Petroleum Corporation, and I'm presently general joint interest superintendent of the Rocky Mountair Division of the Pan American Petroleum Corporation located R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE. ALASKA AGO 8 51. 86 8 10 11 12 13 14 15 17 19 2O 21 - 10 - at Denver, Colorado. Q Are you familiar With Pan American's operation in the Middle Ground Shoal...platform? A Yes, sir. Q were you present here when the previous witness testified? Were you not? A Yes, sir. Q Do you agree with his explanation of the way in which oil is being produced in this reservoir and the necessity to use the gas to produce it? A Yes, I do. Q In your opinion is there in the Middle Ground Shoal field any escape into the open air from these 'wells which are producing oil of gas in excess of the amount ~which is reasonably necessary for the efficient production of oil? A No. As Mr. Muehlberger stated, the gas present in each... the gas in solution in each barrel of oil, there is no excess of gas being produced at the present time. Q Do you have anything to add? A No, sir. MR. WILLIAMS: ..... before ~we go into questions. MR. MARSHALL: Yes, I would like to ask a question. We are in concurrence ~with the statements that have been made about the na- ture of the reservoir and the pressure 'which presently exist in th~ reservoir and that the gas being flared now does not represent a R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA 10 11 12 lB 14 15 16 17 18 waste of reservoir energy. I would like to hear some comments by the industry on the fact that the gas has a value at present, is not being utilized for a beneficial use other than as a reservoir drive mechanism. Would you care to go into any future plans for the possible sale of this gas which is now being flared? (Unidentified voice) Are you asking the question of the 'witness? MR. MARSHALL: It's a bird flying in the air. Anyone want to take a crack at it? MR. MUEHLBERGER: A I~11 address myself to some of this, Tom, since 'we have more facts. As to the future uses I'll defer these ques- tions to someone else. But maybe another point of clarifi~ cation here. In the establishment of a certain volume of gas or in the reliability of the source, the nature of the gas as it's being produced, it's necessary to define your container, to determine the amount of oil that's in place; how the oil is produced with time and of course the gas that's associated 'with it 'with time so that you can deter- mine, say, how many cubic feet of gas there, are in the field. Now in the early stages of development in the field we have not defined the production limit of the field. We don't know how much gas is here to be utilized. We don't ka~ow what our maximum rate will be and how the-- how the wells will decline with time so that we know exact. ly how much gas we can expect to produce. All of these ar~ R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA ~GO 851.870 10 11 12 13 14 15 16 17 18 19 21 factors in the e~onomic determination of the value of the gas. We'll have to determine these parameters then to see 'whether or not these are feasible ...... may be able to give us a little insight into some of the costs and possible uses of the gas. You must realize this is all preliminary 'work and it's going on concurrently with our deve lo pment ...... MR. MARSHALL: Yes, 'we certainly recognize this as an evolutionar' process in the de.velopment of the field and we are interested in your prospective plans for this field. MRo WILLIAMS: I'd like the record to show that Karl v, on der .Ahe, a member of the committee, has joined us. MR. KOELBER: A One of the major problems that confronts us is ..... trans- portation, as you gentlemen all know. A year ago now we did not know whether we could start to lay a pipeline in the Inlet for transporting crude oil. This has been done now and 'we do transport crude. I.'d like to take just a minute to describe the mechanics of the pipeline and some of the problems which 'we encountered. One we would call a static and the other a dynamic problem of the pipeline. Statically the pipeline has four forces acting on it. One the force of the current which is described, if you'll permit me, by the force is equal to the co-efficient of drag times the diamete~one-half tho which is slug 'weight R & R DEPOSITIONS WEST EIGHTH AVENUE- E~UITE 277-4713 ANCHORAGE, ALASKA 10 11 13 14 15 16 17 18 19 2O gl 2?, times the velocity squared. This is the drag force on the pipeline. This is force resisted by the weight of the pipeline times the co-efficient of friction. We had to weigh the pipeline down and of course that is resisted by the bottom of the Inlet. When you look at the weight of the line--of course, you have to take into account the weight of the line, the weight of the coating, plus the 'weight of the fluid inside and this in turn is usually your resistance to the force to move the pipeline ..... As of this date this piece of D, 'which is the co-efficiemt drag on the pipeline, which determines the sliding force, is not defined. And. ~f you don't know the friction fac- tors between the bottom of the Inlet and the line. Now the Middle Ground Shoal crude line has the additional weight of the crude oil inside. You take this away, it reduces the 'weight, and so the net weight is then the total weight of the pipe and the coating less the weight of the gas--if you'd like to transport gas--is esSentially no- thing minus the displacement of the lineo This is the total force down. And in addition as you lay your pipe- line on the bottom you have a lift force which can be--a pipeline suspended has a net lift force of zero ~because the forces up and down balance out. However, as a line stays right here on the bottom it turns this 'way, it lifts the line or tends to lift the line. This again reduces R & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA AGO 851872 10 11 12 13 14 15 ]..6 17 19 21 - 14 the net weight down which applies it perhaps to slack. This is a real problem and we don't have the answers to it yet. We don't know the co-efficient of the lift of this line. We don't know the co-efficient of' the drag of the line. We really don't completely know the velocity of distribution from the surface .... to the point right where the line contacts the bottom of the Inlet. So this is some of the problems that we are trying to solve for the transportation. In addition to this, what we may call a static problem., 'we also have a dynamic problem called ..... If a line is.suspended, and as you all are probably aware of this, the Inlet bottom out there is very--real rough and in spots the line should be suspended ...... can drive the pipe to dynamiC failure in a very short period of time ..... size of the line from two-inch to twenty-inch and whei you add ..... again it's important that you know a whole lot of factors that aren't really clearly defined like velocit, distances and total length of unsupported line. And part of the problem is determining the total mass of the line in order to define the natural vibration frequency. ..Ap- parently ~we are in the base configuratiQn of the crude oil line. If you take out the ~weight of the crude you change-~ significantly change the system, and whether or not the line can transport gas is:~ at 'this stage of production, unknown. So this is one of the major concerns, I think, R & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA A GQ 8 5.18 7'3 . 10 11 12 13 14 15 17 18 lg 21 with respect to gas. If you transport it anywhere it's certainly obvious that that has to be done. Whether or not it can be done is a problem, a technical problem, is something else ~we have to solve. MR. MARSHALL: Would anyone here care to comment on the possible use of natural gas for engine fuel on the platforms? MR. KOELBER: The use of gas in the type equipment that is installed on the platforms is feasible in that fuel, natural gas, can be used for the fuel for this type engine and it requires very little ..... to a different configuration. Obviously the engine now ..... compression ratio of 18 to 20. Gas requires a considerably different compression ratio. You need to change the 'whole engine configuration. The ques- tion is reliability. I think 'we concur that for a safe and prudent operation we have a reliable source of power at all times. There are periods in our operation that it is necessary to shut down all 'wells ..... a chance of losing power or control ..... MR. MARSHALL: Would you consider a pipeline, a gas pipeline link from platform to platform of sufficient reliability to convert to natural gas? MR. KOELBER: A If I l~new in fact that the pipeline ~was reliable. This comes back to my first statement~ if I knew the pipeline's r & ~ DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA j~GO 10 11 13 14 15 16 17 18 21 - 16 - capabilities. (Unknown speaker) How long would it take to set up for effective use of gas? ......... MR. KOELBER: A There are some engines now available that have this dual fuel capability, that is, diesel or gas. The engines cur- rently installed on our platform in Cook Inlet, and I think also on Pan American's platform,are not of this type and to the best of my knowledge are not capable of that changeover ...... (Unknown speaker) One pipeline at least is being buried out there. Would you care to comment on that or ...... MR. KOELBER: A If in fact the ~line can be buried then you do not need to worry about this reduced lift or the drag co-efficient since the line is not exposed to the forces provided by the the Inlet. However on/Middle Ground Shoal piece to the shore it is not possible or we have not determined a way to bury the line. I think that ..... is that recently on Pan Am's new line the long stinger has this sled on the bottom 'which plows, attempts to plow itself for the line to lay in. I believe that plows on the stern of their stinger are torn off by the rocks at the bottom of the Inlet. To bury a line in this rocky soil ..... but 'we don 't R & R DEPOSITIONS 825 WEST EI(~HTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA AGO 851875 10 11 12 13 14 15 16 17 18 19 2O 21 know that you can .... don't think that you can. MR o GILBREATH: Are there any plans under way to utilize the gas now being vented for productive purposes Or for additional reservoir energy as far as gas lift? (Unknown speaker) A Gas lift, ~we intend to install a compressor shortly to take the gas ..... separator and compress it back up to the necessary pressure for gas lift ...... MR. MUEHLBERGER: Nothing I can say. The amount of gas that's being produced out there is a rather small quantity and you come into physical limitations on the reinjection of gas. First you have to take ~a known reservoir and general. ly 'where you put gas into the ground or store gas-,, you put into a depleted reservoir so that you have some hope of getting that gas back or you may put it into a water- filled reservoir; you get lesser depth if you want to stor~ the gas but in this case quite wasteful from the stand- point ..... the gas 'will dissolve in the water and essential ly no gas at Middle Ground ..... drilling operation on the platform is very limited space and you take a low pressure gas off the separator 'and compress it back up to a good pressure .... to get it away requires a certain amount of horsepower and at tha present that space is just not available. You have to take--if you want to put it in a R & R DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA A GO 8.5,! 8 76 10 11 12 13 14 15 17 18 19 2o 21 22 25 lower reservoir you have to put it in at relatively high pressure as the zonal pressure is high at this time and we concur ....... on a platform we don't like to have high pressure gas on the surface when we are actively engaged in a drilling operation. You have forty or fifty people working out there and it's really probably one of the most dangerous things 'we have at this time ..... jeopardize your operation .... MR. SWAN: I'd like to add at this point if Pan American has nothing to add to what Shell has said. MR. CREWS: Tom~ I'd like to ask one question. Ralph Crews. I'd direct it to Mr. Richards and Mr. Muehlberger jointly ....... must be produced in order to get the high value oil. ~.Rt. RICHARDS: A This is true. I must confirm~ I guess, what Mr. ~.~uehlber- get ..... said, the operators are aware that we have a sur- plus of gas on the platform "which can be used for fuel and can probably be transported to the shore for some market, 'which is not yet developed. Before we can intelligently plan on how to use this gas we must know the total volume that will be available throughout the life of the field and the rate at which it can be produced. We do not have these estimates or studies completed. We do not have ..... determine the size of the reservoir and the production rates. We intend to use the fuel on the platform but we R & R DEPOSITIONS Iii WEST EIGHTH AVENUE- SUITE ~ : 10 11 12 13 15 16 17 18 19 2O 21 24 25 -19 - to determine the proper way to use it, and if possible to pipe it to above' for some future market, but at this time it's too early to allow to make a definite plan for the transportation of ..... We feel it's being beneficially used at the present time in lifting the oil to the surface and the amount, the volumes available at the present time are a minor amount. They are increasing but to determine 'what their future rate or total volume 'will be we cannot see that far. We run continual studies and 'we watch everybody ..... information 'we develop on the reservoir° MR~ MARSHALL' Q Sid, I realize this is a difficult question but I think it will give us some information on how to proceed 'with our order if you do issue one from this hearing° Could you speculate on a time at which yon will arrive at the answers to the questions that you've posed? MR. RICHARDS: A I hate to speculate on the time. It ~would be more or less on the basis of 'when we 'will complete our development. I would say it would not be 'less than two or three years from now, when 'we 'will have adequate information to deli- neate the reservoir. We'll know more than 'we know now and I will not guarantee that even two years from now that we'll have enough information. We'll know considerably more than 'we know at the present time° It's possible that R & R DEPOSITIONS WEST EIGHTH AVENUE- ~UITE 277-4715 ANCHORAGE, ALASKA AGO 851878 10 11 13 15 16 17 18 19 20 21 - 20- we may 'know at that time. I'd say at least two to three years before we complete development and I base that on what our production rate will be and what the total volume of gas available for distribution. MR. VON DER AHE: Q Would it be economical to ....... gas later on ..... bRt. RICHARDS: A Again I couldn't say the time. I'd have to - it depends o~ how much volume 'we'd have available from Middle Ground Shoals and how much it 'would cost us to take it over and ~ tie it into the north Cook Inlet line and the rate at 'which ..... Now whether it's economic it ~would have to be deter- mined at that time. It is a possibility, (Question by unknown speaker) ....... Mr. Richards., do I under- stand you might know.°° indicate that it may be as much as two years before you can determine what can be done economically with this field? A Yes, sir. Q Are there any plans? At all under way at this time? A We're making studies jointly with Shell on the reservoir to try to determine the size and shape of containers .... the total volume of oil and gas in these containers, and the rate at 'which they can be produced, so this gas can be properly utilized in the secondary recovery operations or 'whether it'd be more - a better use would be to bring it R & r DEPOSITIONS WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA AGO 851879 10 11 12 13 15 17 18 19 2o 21 22 - 21- ashore and furnish some market which may be available. (Unknown speaker) Q Mr. Muehlberger or Mr ...... can either one of you give me any idea of any timing that you might have with regard to the utilization of the gas for gas lift. You said there might be some plans underway for that. Are they ~firm with' either company? A We have the compressors ordered ..... delivery .... installed on that platform ..... We also have a platform ordered. We expect delivery next spring and ~we're figuring gas lift operations at that time. Q In other words, both companies by next summer possibly will have compression facilities installed for gas or gas lift purposes? A Yes, sir. MR. MARSHALL: I'd like to ask a question of anyone who cares to answer. Would you expect your gas lift operation to utilize a considerable portion of gas now not being utilized? If you can give us some idea. MR. SWAN: As an attorney I'm going to .... raising that question. The gas is being utilized. We could utilize it much more. MR. RICHARDS: A Now I might state for our studies that the amount of gas Used for gas 'lift operations, the only real consumption of gas will be that used for fuel to run the compressor. "' '.' 8~-'~ wE~T EIGHTH AVENUE'~ ~UITE: ~ 277-4713 10 11 12 13 14 15 16 17 18 19 2O 21 We anticipate this to be a rather minor amount, somewhere on the order of 250 to 350 mcf per day. This is a small amount of the total gas which is available. Q What 'would ..... lifting ..... ? A Well, that ~would be used but it would be a low ..... MR. MARSHALL: Q Your compressors to be used in the gas lift operation, Q ~will they be diesel fired? They will be gas, capable of compressing gas and using gas Mr. Richards, approximately how many million feet a day are you flaring? On our platform they advised me that yesterday's productio~ was about 3200 barrels of oil per day and a gas-oil ratio of around 300 cubic feet per barrel which means about less than a million cubic feet of gas per day. 300 cubic feet per barrel. That would be a total volume of gas then about 950. Will it interfere with your further exploration .... ? I hope to tell you. eeeee ..... the impact of this hearing will have far-reaching .... economic of Cook Inlet developing ..... r & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA AGO 85.A88! 10 11 13 14 15 16 17 18 19 21 (A short recess was called for at this point in the proceedings, from 10'40 to 10:45. Then any further comments or questions were asked for , and Mr. Rudd gave a final argument.) END OF HEARING R & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4713 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 2o 21 CERTIFICATE UNITED STATES OF AMERICA ) STATE OF ALASKA ) I, Rosemary Rice, Notary Public in and for the State of Alaska, residing at Anchorage, Alaska, and reporter for R & R Depositions, do hereby certify: That the annexed and foregoing transcript of the hearing on North Flare, Middle Ground Shoals, November 1, 1966, was taped from Divisio~:.~. of Mines and Minerals tape at the office of Division of Mines and Minerals, and thereafter was transcribed by me to the best of my ability from SoUndscriber tape. I am not a relative nor employee nor attorney of any of the parties, nor am I financially interested in this action. IN WITNESS k~{EREOF, I have hereunto set my hand and af- fixed my seal this 28th day of April, 1967. Notary Pub'S/lc for ~A aI-~- My commission expires 11/4 R & R DEPOSITIONS 825 WEST EIGHTH AVENUE- SUITE 277-4715 ANCHORAGE, ALASKA AGO 851883 67 1 2 3 4 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Div'. of"M & Mnrls ~..~.- 1 BEARING BEFORE THE ALASKA OIL AND GAS C(lttlSSlON, File #32 Anchor age, Alaska May 8, 1968 R COURT REPORTERS WIfBT EI(~HTH AVENUE -- SUITE B 277-4713 ANCHORAGE, AL,ASKA 10 11 12 14 15 17 19 2o 21 22 23 24 25 PROCEEDINGS MR. WTLLL~IS: This is the hearing on Conservation File No. 32. it's a continuation of a hearing on Conservation File .32 relative to the use of gas resulting from oil production at Middle .Ground Shoal Field. Legal. notice of the continuation was published April 10, 1968, and interested parties 'were proper ly advised and notified. ' We have the full Committee here today. My name is Williams. N~. Marshall, Executive Secretary, and H~. Wallin§ton Hr. Vonder Abe, and Hr. Kugler are member'sl Hr. Gilbreth, our technical advisor is here; and Hr. Hartig, our legal advisor. Witnesses will please identify themselves for the record. Teahnical Witnesses will be sworn,and will qualify themselves if they have not been qualified before this Committee before. I believe with that we can proceed. MR. CREWS: Hr. Williams, my name is Ralph Crews. I'm an Anchorage attorney representing Pan Am here today in this hearing. On my left here is Mr. Oscar Swan, whom I believe you all know, who is Pan Amert. can's attorney from Denver, Colorado. Right over is Hr. Barton Giles who will be Pan Am's Witness here today. MR. RUDD: Joseph Rudd, representing Shell, its part- nets. The witnesses we will present this morning ~are Dean Allen , who has previously appeared 'before the Committee~ and iA. A. Wynn who is the Division Production Manager fo~ Shell, who 'has not R 8¢ R COURT REPORTERS EEE WEST EIGHTH AVENUE -- IBUITE lB 277-4713 ANCHORAGE~ AL.A~IKA ,AG 13 8518 8,5 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 - 3 - previously aPpeared befor'e the Committee. Pan .American and Shell · have again sought' to present to the Committee very briefly a cooperative presentation in order to prevent any du, plication, and with the Committee's permission we would like to follow the same format that was followed in the earlier sessions of this hearing, ~whereby we present our' witnesses who will make statementS, followe by questioning of the witnesses by the panel after all the Direct The first witness we would call then is testimony is put in. Dean Allen. DEAN ALLEN having been first duly sworn, testified as follows: A I believe I've been qualified onc~e or twice before.' MR. WILLIES: Mr. Allen, you have. A On January 16 of this year we met here to present testi mony and exhibits regarding the gas production and utilization of this gas at Middle Ground Shoal. I woul, like to review briefly Shell ts testimony of that hearin~ and to bring you up to date on our progress since that time. In. the January hearing we pointed out that the Middle Ground Shoal field containscthe valuable prod~uct the crude oil itself, and that the principal conserva- tion effort be£ng made there is to maximize the economi~ recovery of this oil wi~h the minimum expenditure of th, natural gas energy. This natural gas energy, is present in the oil in the reservoir. We showed that the princiF R & R COURT REPORTERS BHB W~BT EI(~HTH AVENUE -- BUITE B ANCHORAGE, AL,ASKA AGO ,8:518,86 10 11 12 13 14 15 16 17 18 19 .20 21 22 23 24 25 beneficial use of the Bas was in brin§in§ the ~oil into the well bore and thence to the surface for market. We showed that the oil cannot be produced at all with- out also producing gas. The oil and gas in the reser- voir are inseparable. We further showed that the amoun of gas prOduced with the oil was small, by usual oil field standards and does not exceed that which is ' 'necessary for the oil's production to the surface. On the contrary, additional gas must be added to the well' ~..'.i, p~oducin§ stream in order to produce the wells at rates which we consider to be economically, attractive. This gas is introduced in the form of .gas ~ lift you Will recall. The present producing §as/oil 'ratio is the same as the solution gas/oil ratio, which is the absolute minimum possible gas/oil ratio the field can be pro- duced at. For a normal, depletion type reservoir, such as the Middle Ground Shoal appears ~to be, th~ gas/oil ratio should increase after the pressure in. the reser- voir has dropped below the bubble point. This is a .necessary adjunct to the production of oil, recovery of oil, at pressures below the saturation pressure. And yet this still makes maximum beneficial Use of the gas that ts dissolved in the oil. Although the 'primary producing mechanism would & R coURT REPORTERS WEST EI{~HTH AVENUE -- SUITE S 277-47 ! 3 ANCHORAGE, A~.ASKA " AGO 851887 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 5 - make maximum efficient use' of this §as ener§y available in the formation we are also workin§ on a water flood pro§ram to desi§n 'to recover additional 'oil at hi§h re- s~.gbir pressures, thus minimizin§ the amount of §as to be produced with each barrel of oil. In the January testimony, M~.'Ka. elb'~r our former Division mechanical en§ineer,' showed you what the secondary~ uses of the ' produced gas were bein§ made or were in the plannin§ .sta§e for further work. I can tell you at this time that we are movin§ .alon§ as he informed you with the · planned conversions of equipment to §as usa§e. We are installin§, additional equipment which will u'se §aS as a fuel. We now have ~wo §as compressors on Platform A and one on platform C, and we tre. installin§ this.month a third compressor, on A and a second compressor on C. When we finish this iinstallation the total §as lift injected will be essentially one hundred, percent of the daily §as production. But of courses this injected gas is not consumed but is produced alon§ with the. forma- tion g.as~ as we cited. With all of the conversions that we now have and that we plan to use gas as a fuel on the platforms and onshore~, there still is a volume of gas which is used to produce the oil to the surface but for which no secondary use has yet been found. Mr. Ka'elb~er pointed R & R COURT REPORTERS 828 WKET KIOHTH AVENUE -- 277-4713 ANCHORAGE, ALASKA AG,O 8518 8 8 10 11 12 13 14 15 16 18 19 20 21 22 23 24 -6- out to yOU the relatively small size and small value , of this excess gas, and showed that the surplus is not expected to last for very long. Because of these factorsI and others, no firm market has yet been ~e~el= oped for this gas. The Middle Ground Shoal operators · have however installed a pipeline through which natural gas can be delivered to all Hiddle Ground Shoal points · for possible use, including on shore. Thus, when a reasonable use does materialize for this gas it can be made available. We believe the maximum beneffcial use of the gas which can be made at the pres.ent time .is being made, and we have provided for its further use once a market develops for it on shore. I*d !ike to introduce at this particular moment Mr. Arlie Wynn, our Division production manager, who will' tell you briefly about our present gas usage and conversions,and will be available to you for questions regarding our operations on Middle Ground Shoal. MR. RUDD: Oentlemen~ as Y mentioned before, Hr. Wynn has not previously testified before the Committee. I trust that after he has §iven his qualifications he wi11 be accepted by the Committee. ARLIE WYNN having first been duly sworn, testified as follows: Div'. of'M & Mm'Is ~.~ & R COURT REPORTERS WElT EIGHTH AVENUE -- BUITE B 277-47 ! 3 ANCHORAGE, AI..ASKA 10 11 12 13 14 15 16 17 18 19 2o 22 23 24 25 A - 7- Wynn, A My name is Arlie Wynn. I"m Division production manager for Shell in Alaska. My sole purpose, primary purpose, for being here this morning is to make myself 'available to answer any questions you may have, particularly concerning our operations, actual operations, of the two platforms at Middle Ground Shoal, Platforms A and C that Shell operates. In addition, I might answer a technical question so I'll state my qualifications and ,experience for' the record, I've been employed by Shell Oil Company for sixteen years in a number of engtneerin ,' and production supervisory capacities~, and I have a B~,,S. , · degree in Petroleum Engineering ''''~ fr, om Texas A&M Univer- sity. MR. WILL~S: We'll accept' those qualifications As Dean Allen stated in our previous testimony, we have mentioned that we have installed and are planning to install' additional equipment that will be natural gas fired on our platforms, and as a matter of fact, essen- tially all our equipment on both platforms will be by the end of this year natural gas fired. Now we have right now five gas compressors that as they are initial ly installed are fueled by ]natural gas. During the past month we have converted two 700 h.p. Waukesha' engines from'diesel fuel to ' natural ~ gas fired..These two 700 R & R COURT REPORTERS 82E WEST EIGHTH AVENUE -- IUITE 5 , 277-471~ ANCHORAGE, ALASKA AGO , 85.1890 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 h.p. engines provide the power for our generating plant on Platform A. I'm happy to report that both engines are operating quite satisfactorily on natural gas. We have equipment on order to do the same conversions to our generating plants On Platform C. so our fuel usage right now on our two platforms amounts to approxi mately 1.5 million cubic feet per day Compared to our present production, of approximately 10 million cubic feet per day. By the end of this year when we have all our conversion completed we expect to be using~ just ; , over 3 million cubic feet per day 'for fuel. One other item of interest. Dean mentioned that we have' installed in conjunction with the PAPS group a pipeline to shore capable of carrying natural gas to get to shore. We've just this month been workin on a bypass to this pipeline that would allow the con- nection of Platform B wi~h all other platforms in the field so when we complete this -- we, expect Cb complete it this week -- when we complete this, gas can move between any of the four platforms and from all four platforms to the onshore point. So that any requirement for fuel can be met from any one of the four platforms. INow we have considered any available possible , use for any excess gas to our fuel and field needs, and as yet' we have not found any further use for this rela- AGO ' 851891 10 11 12 14 15 16 18 19 2o 21 22 23 24 25 -9 - tively small volume of excess gas to our operations. That's all I have. HR. WILLIAMS: Thank you, Mr. Wynn. HR. SWAN: Mt.Chairman, I'm Oscar Swan, attorney for Pan Americm~:.Petroleum Corporation. We are operators for ourselve and Phillips Petroleum'Company, Skelly Oil Company, and Sinclair Oil and Gas Company; each of the'"four comPanies owns an equal interest in two platforms, in the MEddle Ground Shoal Field. We also operate for the same group of companies two platforms in the Granite Point Field. Because of the problem involved here, a little of what'Mr. Giles may have to Say also concerns Granite Point, although I realize that will be a .subject of a later'hear- lng. If you will just be patient with him we'll try to avoid too much overlap, but you can't really -- our gas problem can't be separated; the .four platforms to some extent have to be considered together, though I realize so~e of what he may say technically. doesn't belong in this hearing, but we'll Put it in the next' hearing too. BARTON GILES having been first duly swo~:n, ,testif~ted aS follows on examination BY HR. SWAN: , Hr. Giles, you testified at the PreVious hearing in . t68 didn't you? this matter on January 16th, , A q I did. And yoUr qualifications were outlined in that hearing R & R COURT REPORTERS B2B WEBT EIGHTH AVENUE -- BUITI[ B 277-,4713 ANCHORAGE, AL.ASKA · ; AGO 851892 1 7 8 9 A 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 10 - and accepted? ' They were. , Would you just review for the Committee briefly your testimony at the previous hearing with respect to the gas utilization situation? Well, we told the Committee at the earlier hearings how we',~ are beneficially using the gas to produce valuable oil, and we want to re-emphasize at this time that this is the primary beneficial use of the gas. Without its use in this manner there just would be no oil production. We 'also told you gentlemen at the earlier hearings,and we showed you with the exhibits that we displayed, at those earlier hearings, that addi- tionally we are using some. :of the Produced gas as power and'fuel on the platforms. Now as to the remainder, which I should remind you will only be available in any significant amount,., for just', the next five to six years this remaining gas may 'be used if and when suitable markets develop. What position..are these foUr companies in at the pre- . sent time with respect to this gas and the operations on the platforms themselves? The Chackachatna group h~s put itself in the position with its platform equiPment installations of being able .to place this, available produced gas from both R & R COURT R£PORT£RS B~B WEBT EIGHTH AVENUIr -- BUITI[ B 277-A713 ANCHORAGE, ALASKA AG O 851891~ : 1 2 3 4 6 ? A 8 9 '10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ' - 11 - ,, fields on the beach at its East Foreland~ facilities. Now we've put ourselves in this. position because we feel the best secondary' recovery method is by water inj ec t ion. What steps are being taken now towards water injection operations? At this time we're gettin§ ready to drill a joint Chackachatna-S.A.S. group injection well at Middle Ground Shoal On the line between the respective leases. And I might add that we are at this time evaluating quotes for the flood equipment to serve this' joint line injection well. I should.go on, as Oscar Pointed and ~ouch upon the other 'field briefly to say that at . Granite Point. injectivity tests at iWel1 No. 12, which is east of our platform Bruce, proved unsatisfactory. The reservoir apparently is too tight around this east flank site..S° we have selected,'another well, ~o. 6, for water injectivity tests. Now we: started those tests in the well No. 6 on May 2, 1968, and :although initially the well is accepting a ~housand barrels of water per day, we aren't able to reach any conclusions yet. The engineering committee of ope=ators 'in Granite Div'. of?M & Marls . Point is Currently studying the very best type of field wide Water injection program'. . Now We may find later on that it~ may be R & R COURT REPORT£R$ E~B WEET EIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, ~ ALASKA AGO 8518'9 9 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 q A A q A - 12 - visable after the field ~ide water injection pro§ram is under way .to inject limited amounts of gas to improve the injection profile in our water injection wells. Now if' gas should be needed for this purpose we would use the gas from an extraneous source. This last statement that you had.-- or' made had refer- ence to both fields~ did it, Mr. Giles?' Yes~ sir. Well, then .basically what you're, saying is water injec- tion operations at Middle Ground Shoal and also Granite Point are vital towards the improvement o~ the ultimate or the maximum -- getting the maximum oil recovery. Excuse me. Yes. Now furthermore, the' steps that we are taking to conduct water floods at Middle Ground Shoal and 'at Granite point hold the key to our putting out the flare in the early 1970's, and with water flood both the GOR and gas-producing rates will go down sharply because we will have repre~sured the reservoirs. Going back, Mr. Giles~ to your'statement that the Cha- kaehatna group has placed the excess available ~as, on the beach, were you referring to the same cooperative effort that Mr. Wynn and~Mr. Allen talked about insofar as Middle Ground Shoal lis concerned? ' ' was. R & R COURT REPORTERS BEE WEBT EIGHTH AVENUE -- BUITE E 277-47 ! 3 , ANCHORAGE, ALA~iKA AG 0.85189 5 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A A Would you care to supplement that a little bit from Pan American's point of view? From the four companies that We represent? .. Yes. Even though we will have most of the available. produced gas from Chakachatna operations in these two ,, fields on the beach, there will still .be some gas, such as tank' vapors, flared at each platform because this is gas in the normal course of platform producing opera- ttons that cannot be put into these lines to shore be- cause this gas cannot buck the line pressure, And we at this time are .entering into cross assignments with the S.A.S. group..on the Middle Ground Shoal interconnec pipelines to where our Chakachatna group has' fifty per- cent working interest ih all the Middle Ground Shoa-~ lines t.o shOre.in order to transport the available pro- duced, gas that"s not' used on the platforms. In your previous testimOny you 'touched on other uses for gas 'that had been considered. ~Could you just re- view,a little of that briefly for us? Yes. Re-injection of the produced gas back into' the reservoir, was ruled out because water injection will recover more oil than'gas injection, 'because water has a more favorable mobility ratio to oil ~ Water injec- tiOn is economically more attractive. FinallY, there is not enough gas available for a conventional program R & R cOURT REPORTERS 8~ll WEET EIGHTH AVENUE -- SUITE B 277-4713 ANCHORAGE, AI. ASKA AG0 851896 using moderate pressures. We also went into considers- '68 hearing to show ble explanation.at the February 7, , why storage of produced gas must be ruled out as inad- visable' 'and risky. And finally we told the Committee that the. only other possible disposition of the ava£1abl produced gas was perhaps sale of the gas on shore. 'But we cautioned the Committee that prospects of disposing of the gas in this manner couldn't be considered.bright 10 11 and this is because of the short period of time in which such gas iS available,, the low pressure of thiS produced gas which will require Costly compression, and 12 13 14 15 16 17 Q the attendant treating costs that.may .be necessary j to put this gas in shape for a possible buyer. I At the previous hearing ~n January there was some testt } mony that .~entative offers or at least inquiries had been received from potential purchasers. What' status of those possibilities now? s the 19 20 21 22 23 24 25 Yes, we did say that, and we have in fact received in the past five months gas purchase proposals from three ., parties:' Union Oil Company of California, Phillips Petroleum Company and the Atlantic-Richfield Company. Now the latter two, Phillips and Atlantic-Richfield proposals, were. withdrawn, and at this time we only have an offer by Union Oil in our han~s to consider. Now this offer, a revision of an earlier ~o-cent offer R 8g R COURT REPORTERS 8EB WEET EIGHTH AVENUE -- · ANCHORAGE,. AI.ASKA AG 0 85 ,! 89 7 10 11 15 16 17 18 19 20 21 22 23 24 25 A - 15 - for the gas, does not provide for any payment to be made to the sellers. Does this offer cover bOth the Middle Ground Shoal gas and the' Granite Point gas~ which would be available from the four platforms that we operate? , It does. MR. SWAN: Gentlemen, that concludes out'testimony .' ., unless -- Mr. Giles, have we omitted anything that you can think of? , MR. GILES: No. MR. RUDD: We have no.(further witnesses to present', offering statements. However, the panel of witnesses is available to the Committee for questioning at this time. MR. WILLIAMS: Mr. Marshall has a question for Mr. Wynn MR. MARSHALL:' Tom MarshalI speaking. Mr. Wynn, .you stated that by the end of this year you anticipated a use, I be- lieve you said,for fuel purposes of three million cubic feet of gas peri(iday,.~ and at that time' you were .discussing, I believe, your , Platform C. Is this -- is this for each platform or for a total' of both of your platforms? A This is a total for both Platforms A and C. MR. MARSHALL; Thank you. he' s here? MR' WILLIAMS: Any ,further questions of Mr. Wynn while , ~ MR. GILBRETH: I'd ,like to ,ask one question. , R & R COURT REPORTERS. B~B WEBT EIGHTH AVENUE ~ BUITE B ' 277-4713 ANCHORAGE, ALASKA . .i 7 ,9 12 14 15 16 17 18 19 2O 21 22 23 24 25 - 16 - MR. WILLIAMS: Mr. Gilbreth. HR. GILBRETH: Mr. Wynn, the mechanical installation that you have, or the ---all the Operators have for' gathering the gas in the Middle Ground Shoal,. is it necessary to ins~tl addi- tional equipment ~ now to send' the gas to Shore or has equipment been installed now to send it to shore? A I .can speak for our two platforms. I can't answer for B and D, but on the Platforms A and C we presently have installed enough compression to take care. of all our forecast gas production as far as gas lift is con- cemned. Dean Allen mentioned that we will b· injec- ting a hundred percent of our produced gas for gas lift purpOses, and we have available on P~atform A about a half of one 110'0 h.p. compressor that is not required for this purpose. This amount of compression can be used to transport any excess gas to shore through the pipeline. , '. HR. GILBRETH: Is that enough to transport all of your produced gas on that platform to shore? A It is approximately enough to transport all of the ex- cess produced gas from Platform A. We do not have, that same capacity at present on Platform C. MR. GILBRETH: Can yOu give ,us any-idea of what percen- Cage of the excess gas it will be necessary to flare at' the plat- form and what could, be,sent toishore with what you have? ' R & R COURT REPORTERs 277.47 ! :9 ANCHORAGE:, AI..ASKA ' AG° 8518.9'9 , 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 A -17- Well, with that compressor capability --with the five compressors we're talking about -- all our excess pro- duced gas on Platform A could be transported to shore except, for a safety vent., you might say; and on Plat- .. form C we would have no excess .compressor capacity. 'However we could possibly spill some over from our gas ~.!ft compression. But approximately the gas productio~ on Platform C then could not. be transported wit~' the present compressor facilities. MR. GILBRETH: , It would be necessary to install'addi- tional compression facilities to' put the excess gas on Platform C into the line then? A That' s right. I MR. WILLIAMS: Thank you, Mr. Wynn. Any further ques- tions?, Any further qUestions of any of the other witnesses? Mr. Gilbreth? , ~ 1 MR. GILBRETH: I have one question I'.d like to direCt to both Mr. Allen'and Mr. Giles. I believe both of ~you gentlemen presented estimates in the Original' t hearing on the gas volumes that you expected t° be flared in, the '~fu'ture. D° yOu ,haVe any, reason at this Stage to believe that any change will be necessary in those estimates? , , I I ' MR. GILES:, Pan American does not. MR. ALLEN: The "estimates that we gave ,you Were based' upon the certain set of conditions and assumptions that We made .. 'R COURT REiPORTEREt WEST EIGHTH AVENUE __1 IBUITE B 277-4713 ANCHORAGE, AL.ASKA AGiO 851900 3 10 11 12 14 15 16 17 18 19 2O 21 22 23 24 25 for a secondary recovery flood. Since that particular time we have of course made additional investigations assuming different parameters which gives slightly different answers, so indeed we have a suite of curVes that we could look at. and say that these are in the .realm of possibility, but the one that we presented to you in the January 16th meeting, we feel is a reasonable e'xpecta- t ion of what can be done. MR. WILLIAMS: Does the Committee have any further questions? At this time then the hearing is open to questions from the audience.. This is a public heartng~ if the public wishes to be heard in the way, of questions ~o£ the witnesses, now is the time. (Pause.) By any Chance iS there anyone, in the audience who wishes to make a statement in behalf of any company o~' themselves? (Pause) There seems to be nothing further from the hearing par- t icipants or the audience, so I Will -- MR. SWAN: We would like to make a brief closing state- ment, Hr. Chairman. Can you give us aboUt five minutes? (At 10:00 a.m. proceedings were recessed until 10:10 a., (OS .~m R~.CORD) MR. WILLIAMS: Are you ready, M~. Swan? MR. SWAN: Yes, sir. MR. WILLIAMS: We're back on the record here. We may have a question or two after your closing statement, if this is agreeable to you. MR. SWAN: That's fine. R COURT REPORTERS WEST EIQHTH AVENUE -- ~IUITE 27,7-4713 ANCHORAGE, AL. ASKA AG 0 .8.5 3 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 - 19 - MR. WILLIAMS: If not, we'll have to ask them now. MR. SWAlq: Well, either way. MR. WILLIAMS: We'll ask 'iC~ after you are through. MR. SWAN: I'm Oscar swan again, attorney for Pan, American. Petroleum Corporation, and speaking for'the four companiE for whom we operate, we feel that we have shown the committee that all of the gas being produced in the'. Middle Ground Shoal ~ield ' is being beneficially used in the 'production ofl oil, and. that"'.it' necessary -'- you simply can't produce the oil.without producing that gas. W.~.,?ve also showed you so far as our platforms are con- cerned that we have tried .Co make additional beneficial use,I' .. , secondary beneficial use, and have done so, 9f as much of the gas as possible for fuel and power, other requirements on the. ~ Shell has done the same for their -- the platforms 'they Operate. And the seven companies in cooperation' have entered into an arrang I . merit which gives us. a pipeline that will get Chis gas to shore where perhaps we can develop furCher beneficial use. We have compressor capacity now to get a substantial part of that Co shore And we have diligently cried to develop a market, and I think the companies Chat are prospective' purchasers have diligently' tried to do the best they C'ould .Co provide a market, but the best offer we . have now is essentially that' we wou~d deliver the gas and reclive n~thing for iC. I don't chink We 'can encourage;~.~the committee to think we will accept that offer. We. have seriOus reservations about accepting an Obligation t° deliver gas for Which we get no R COURT REPORTERS WE~T EIGHTH AVENUE -- SUITE ~B ~'77-471~ ANCHORAGE, ALASKA AGO 85190.2 10 11 12 13 14 16 ,17 18 19 20 21 22 23 24 25 - 20 - compensation when that obligation impair the efficiency of opera- tions that are more important to us and to the State. That is, the production of oil. There t s an additional problem here. The State owns a substantial quantity of that gas, and as a matter of fact, its. interest is almost comparable to any one of the seven companies involved; and I tm not 'sure that at this time whether the State wants to commit its gas to that kind of an arrangement. So I think what we can assure you is wetre going w continue to try to usd as much of this gas as we can for the ' operation of the platform. Whatever use we can find. We going to continue to try to find a market, but I cant t tell you at this time that we Will or will not accept Unipn~s.offer; and don~t think there's any reason' for delaying a decision in this matter, particularly in view of'your House Bill No. 659., which think has been signed by the Governor. I think I know the form in which it ts signed, but it ts a ~ittle hard to find out. But if that Bill has become law we need from this Committee an Order which finds that we are at the present time making beneficial Use to the'maximum extent possible consistent with efficient operation that the flaring of the gas which we are not able now to use fur- ther or to find a market for is necessary to the efficient produc- tion of the oil from the reservoir, and that that flare is author- ized. And as ~ say, if. this Bill has become law,-we need that .Order as soon 'as possible. MR. WILLIAMS: Mt.Marshall has -- · . , Div'. of'M& Mnrls ~-~-- ] R 8g R COURT REPORTERS , 825 WE~BT EIGHTH AVENUE -- 8UI?E 8 277-4713 ANCHORAGE, ALASKA AGO 85 ].903 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 .18 19 20 21 22 23 24 25 MR. MARSHALL: M~. Swan, you answered pretty well the question I had in mind'. Just for confirmation' would you say it was a true statement that. good faith negotiations are still active on the -- the gas purchase offer that is still alive? MR. SWAN: Yes, sir, I --we feel as though however -- maybe Union ought .to say this themselves. I feel that they've made the .best offer they can. You have to realize that they're looking at a very limited gas supply here, and it's a pretty big investment, so I 'would hate to encourage you to think that we're going to get them to come up any in their offer. I just -- I think they're doing the best they can. We've looked at this our- selves, and I can't -- I can't quarrel withi.~.hheir decision here. · MR. WILLIAMS: Would a representative of Union Oil. care to say anything at this point? MR. ANDERSON: Union Oil. I am Robert Anderson, the District land manager for Alaska for Union Oil Company. We are diligently attempting to negotiate a contract as has been interI- jected here. We will continue in good faith to negotiate to its ultimate end. MR. WILLIAMS: Thank you, Mr. Anderson. Anything fur- ther? If there is nothing further then we will close ~hZs hearing If it is necessary to continue it at a later date, we'll so advise you: We'll do the best we can with an Order if it seems to be necessary, and we would request that -- we do.request that the parties involved keep us -- keep the Committee closely informed ~'J~-~.Div'. of'M & Mnrls .AGO 851.904 R & R COURT REPORTERS 82.5 WE~T EIGHTH AVENUE -- EUITE B 277-4713 ANCHORAGE, ALASKA 10 11 14 15 16 17 18 19 2O 21 22 23 24 25 22- on marketing, negotiating,other developments pertaining to this issue. This hearing is adjourned. , --- END OF PROCEEDINCS --- R & R COURT REPORTERS 8~1 WEET EIGHTH AVENUI~ ~ BUITE B 277-4713 ANCHORAGE. AI.ASKA · AGO 85.1905 RECEIPT FOR CERTIFIED MAIL--30¢ ~ CD Lf) m .._q o o SENT TO I POSTMARK t,f~o F., Ho Lewis (,~tt:¥, Pan Amertca~ ?e~'~^.TE Co STREET AND NO. r ,, , P.O. Box 779' P. 3'.', ~TATE' AN6 ZIP CODE' ' / Anthcr are, Alaska 99501 · , Re elpt Deliver to , ,, ~(" "~ ,. ~ows to w~om Shows to w~om, Addressee Only, "" ~'' ,"~'"'"' and date date, and where ,~ ~ ~ ~ . delivered delivered ' ~ 50~ lee ~ ..........." POD~orm3Rfl0 NO INSURANC~ COVERAGE RROVI~E~-- See other side) ~ar. lqq6 NOT FO~ INTerNaTIONAL MAIL J 'iNSTRUCTI0'NS'"Td DELIVERING EMP[.6YEE I r'-'l 'show to whom and Show to whom, date, and r-q Deliver 0NEY / date delivered E~ LLJ' to '~iddresSee · address where' ~eliv~red ' ' (,4dditioital charges required for t'hese'"services). ' RECEIPT Received the numbered article described below. REGISTERED NO. GNATURE OR NAME OF ADDRESSEE (]~ustalways b~j~lledi#) CERTIFIED NO. ~ /'''~ ~"""'~ ~ _115069 SIGNATURE~~~OF ADDRESSEE'S AGENT, IF ANY INS UREO NO. ' ~~~.~ DATE ~ELIVERED [SHOW WHY'RE DELIVERED (o~l~ i/regsest~ "':*' ' AGO 851909 '.. o~1~71~ ~ RECEIPT FOR CERTIFIED MAIL.--30¢ SENT TOPOSTMARK Mr. R. O, Dunbar (Phillips Petro, o~,~ CD .. STREET AND NO. P.O. Box '4~9 P. O., STATE, AND ZIP CODE ' , ? ,, A...,.'P,.~..,.,.,... A I o el,r.'~ E X T R A~ ~ ~ jjl/l~ ~' ~D~'~JI~) J~l 0~I'A[' ~E~['- Return Receipt Deliver tb'~,''' ~hows to whom Shows to whom, Addressee Onlya.. and date date, and where ' :,", del,ivered delivered ~-~ 50~ fee , [~' 10~, fee E~ 35~, fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ,,~ INSTRUCTIONS 'i',O DELIVERING EMPLOYEE ElShow to whom and r--i~:Show to whom,' date, and 'Deliver ONLY date delivered [_J address where delivered [~ to addressee (Additfo~al charges required for these services) RECEIPT Received the numbered article described below. REGISTERED NO. SIGNATURE OR NAME OF ADDRESSEE (Must always befllledln) 11~065 SIGNA~RE OF ADDRESSEE'S AGENT, IF ANY INSURED DATE DELIVERED . ISH0 DELIVERED (onlyffrequeste~ . CO ,,r-! RECEIPT FO'R CERTIFIED MAIL--30¢ SE.T TO t ') ~Clauda H. Brown (Texaco Inc STREET AND NO. P.O. Box 664 P. o., STATE, AND ZIP CODE Anchorage, Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only and date date, and where .~eli .... d delivered E~] 50¢ fee ]o¢ ~ee [] 35¢ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- Mar. 1966 NOT FOR INTERNATIONAL MAIL POSTMARK OR DATE See other side) INSTRUCTIONS TO DELIVERING ;EMPLOYEE Show to whom and Show to whom, date, -and'*-' F-'q 'Deliver ONLY date delivered O address where delivered '.[:_._J 'to'addressee (Additional charges required/or these servlc'e~) ' RECEIPT '. '"'.:.,:. '.' Received the numbered article described below.'" ,. .," .,,i" CERTIFIED NO. ~ ~~~~'~ ¢~-~.L./%.1 SIGNATURE OF ADDRESSEE'S AGE~ IF ANY INSURED DA'~ .~TE~I~ t~SHOW WHERE OELIVERED(only$/re,ue,ted) ~.,,._' ' i AGO 8519t5 o§D'-l§-TT1548-9 GPO RECEIPT FOR'~ER'TIFIED MAIL--30¢ SENT TO ~ POSTMARK Mr Jack E, Fosher (Marathon STREET AND NO. 731 ~ Street ;'-:~ :.' t ,, .. o.. srAr~. AN, Z~. CO,~ EXTRA SERVICES FOR ADDITIONAL FEES ~ .~'~ Return Receipt ~e];ver ~o ~hows ~o when1 ~how~ to whom, ~ddre~see and date date, and where delivered delivered ~ 50¢ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL '"INSTRUCTIONS TO DELIVERING EMPLOYEE I--1 Show to whom and r--q Show to whom, date, and._ ~: Deliver ONLY I I date delivered . U address where delivered - ~ t0"addressee ( ~lddit/onal charges reqtdred for these services) RECEIPT Received the numbered article described below. REGISTERED N0, SkGNATURE OR NAME OF ADDRESSEE (Must always be filled i#) 1.1,5066 ' ~ SIG~A~URE'OCADDRESSEir'~; A'i~l~', 'l~"A'l~y .... ' INSURE~NO, ~ ~'. , ' '" " " ' '"" ": AGO 851918 RECEIPT FOR CERTIFIED MAIL--30¢ SENT TO I POSTMARK Mr Taol~.~ Britton, Skelly Oil P.O. Box 1314 · / ,, '-',~ '': 'P O., STATE, AND Zl~ C~DE ' '~ ' J '~.;' ~'~:~ :" Anchorage, Alaska 99501 ',,?~,. "~;,'~ ,:'~""' ' EXTRA sERviCES ~OR ADDITIONAL FEEs ",. 'l ,~ ' ' Return Receipt ~e1[ver to ~hows to whom Shows to whom, Addressee Only'l~ '~,:"! ~ :' . and gate date. and where . i ' '"' ' ~... delivered delivered ~ .... J C'~ Lf') e, POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL I,"'"' INSTRUCTIOI~S TO DELIVERING~'EM'PLOYEE r--1 Show to whom and/'A-'-I Show to '~homr. date,, and.'.,:' r--1 Deliver ONLY U date delivered 'U address ~here.dellvered . U to'addressee (Additio,~al charges required for these services) , RECEIPT Received the numbered article described below. REGISTERED NO. k SIGNATURE OR NAME OF ADDRESSEE CERTIFIED NO. ~ ~~ r~~ 11,~).~Z~~ SIGNATURE OF ADDRESSEE'S AGENT, IF ANY NO, INSURED ~"DA~E0~TDELIVERED2 0 196'j~ S~OW~=.~ ..... WHERE'DELIVERED (o,17 i/re~,e,te~ AGO 851921 I .~o-,~,~-~ RECEi~Y'FOR CERTIFIED MAIL--30~ C._") LO ,r-I SENT TO .Mr. D,., D. Bruce, Skell¥ Oil Co. STREET AND NO. P.O. Box 1314 ~ O., STATE, AND ZIP CODE Anchorage, Alaska 99501 EXTRA SERVICES FORADDITIONAL FEES Return Receipt Deliver to ~hows to whor~ Shows to whom, Addressee Only end date date, and where delivered delivered E~ 50~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- Mar. 1966 NOT FOR INTERNATIONAL MAIL POSTMARK .,;,: C:,~; '/' r,..%. '.,.":,.... , 'N "-,% ~ ~ , ,~ ,' ' , .. ,, , ',,, , See other side~ EMPLOYEE ,,~:, F~ .,~ ]~?~,-~-!!NSTROCTIONS~ TO ::DELIVERING '- - | ~.' ~" Shew to whom and ~ SI]ow to wh~m, date, and ~ ,Deliver ONLY,.,~.~,;~ ! I I date delivered ' U address where delivered L~, to addressee [' j (Additloi, a/charges requlred'~or these services) RECEIPT Received the numbered article described below. REGISTERED NO. ~ledin) CERTIFIED N0. . r /'~ ...~../ ?,,,DATE 'ELIVERED ' I SHOW~HERE D~E ~ED (o#/' iJ r¢'# ~/~td)~ ~ ' · ' , ,,,,', ~ ,, ,', '" k , ., ~",,c'-,3,,~.RECEIPT FOR CERTIFIED MAIL--30¢ , , : SE,TTO Mr. R. W. Killen ~STMARK OR DATE Standard Oil Co. of Californi~.~ STREET AND NO. , ?.O. Sox 7-839' 5 'i. P. O., STATE, AND ZIP CODE / ;.: Anchorage, Alaska 99501 ! , , :,. EXTRA SERVICES FOR ADDITIONAL FEES ,~' ~:.,. Return Receipt Deliver to ," ' ~hows to whom Shows to whom, Addressee ~nly" , and date date, and where delivered delivered ~-~ 50~ fee'"%, ' " POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other s~de) Mar. 1966 NOT FOR INTERNATIONAL MAIL INSTRUCTIONS TO DELIVERING EMPLOYEE I'-Show to whom and Show to whom, when, and Deliver ONLY when delivered r-~ ~ to addressee address'where delivered (Addlt]onal charges req~dred /or' these 's'erv~ces) ,RECEIPT ,' Received the numbered articl~ described below. REGISTERED NO. ~lk SIGNATURE OR NAME OF AL~DRESS£E (Must always be filled ln) Mr. R. W. Ki~tl'~n~ ' ," "',: CERTIFIED NO. INSURED NO, DATE DELIVERED ~~ . ,~,~ ', ~ , ~ · ~ I r~ -- 0J~5--16--71~48-7 GPO c.,~-3:4 RECEIPT FOR CERTIFIED MAIL--30¢ SE"TTO Mr. George M. Selinger ' Skell¥ 0~1 Comoanv /'~' P.O. Box 1630' Tulsa~ Oklahoma 74102 ~' '~' ~hows fo whom Shows to whom, Addressee Only~ and date date, and where delivered delivered ~ 50¢ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other sfde) Mar. 1966 NOT FOR INTERNATIONAL MAIL INSTRUCTIONS TO DELIVERING' EMPLOYEE "j "r"::l Show to whom and Show to whom, when, and Deliver ONLY when delivered ~-~ ~ to delivered addressee address where , (~ldditional charges required for,these servk~es) R;*CEIPT Received the numbered article described below., REGISTERED NO, ~ SIGNATURE OR NAME OF ADDRESSEE (Must alwaysbefilled~n) ~Jk .,M~..~. George M. Selinger 'FSKE "115 201 k SIGnaTURE OF ADDRESSEE'S A%~, I~"~' 9 ]9'6 r ~~~.~/ DATE DELIVERED J SHOW WHERE DELIVERED I FEB Z91968 o55--16--71548-7 ope d~/L~&RECEIPT FOR CERTIFIED MAIL--30¢ SENTTO Mr. R. B. Giles POSTMARK "" OR DATE Pan American Petroleum Corp. "7~,' ...... ~, '-.,~ STREET AND NO. ., Security Life Bldg. /' P O. STATE AND Z P CODE J." ' ' ' 1" Denver, Colorado 80202 EXTRA SERVICES FOR ADDITIONAL FEES Return Receipt De/fv,.~7"~ and date date, and where . delivered delivered' ~ ~,. ............ ~o~ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- 'See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL INSTRUCTIONS TO DELIVERING EMPLOYEE Show to whom and Show to whom, when, aRd Deliver ONLY when delivered [~addresswheredelivered J-'"'l to addressee (Additional charges required for these services) RECEIPT Received tile numbered article described below. l^~r'~ SIGNATURE OR_1~ f'Z_4 1,~NAME OF ADDRESSEE (Mustalwaysbefille=dfn) REGISTERED NO. CERTIFIED NO. 115 205 INSURED NO. DATE DELIVERED ' FEB 1 9.1968 k SIGNATURE OF ADDRESSEE'S AGENT, IF ANY S}I~ WHERE,.DELIVERED' (only il, ~t~ : ' . AGO 85 19 33 , ;~-~o-7~_~ ~.f-32.RECEIPT FOR CERTIFIED MAIL--30~ I" C: ,~--t SENT TO ~ POSTMARK Mr W. A. Armstrong ~e . ..pR DATE A~f~St National Bank Bldg., ......... t ,.,. / %, · P. O., STATE, AND ZIP CODE AnchoraEe, Alaska 99501 . EXTRA SERVICES FOR ADDITIONAL FEES Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only and date date, and where ....t delivered delivered ~ 50~ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- Mar. 1966 NOT FOR INTERNATIONAL MAIL See other side) il Show to whom and Show to whom, when, when delivered [~ and Deliver ONLY addres~ ~ to addressee where delivered (Additional charges reqtdred ~or these services) , RECEIPT Received the nu'mbered article described below. REGISTERED NO. CERTIFIED NO. '115203 INSURED NO. SIGNATURE OR NAME OF ADDRESSEE (Must alu~ays be filled ln) Mr W.A..Arm ong ~_~ ' 81~NATURE OF ADDRESSEE'8 AGENT, IF g~Y f / SHOW WHERE DELIVERED (only i/requested) AGO 8519 36 ...... 055~16---71548-7 OPo ~F-3.~RECEIPT FoR CERTIFIED MAIL--30¢ ,SENT TO POSTMARK 'Mr. H. D. Redding STRE~h~ips Petroleum Company "~'~'~ P. O. Box 419 .... '~'* " ~. , - ~ P. 0., STATE, AND ZIP CODE ' ~ ~-.C/' Anchorage, Alaska 99501 ~':: ~ ~"~'""~'?~ EXTRA SERVICES FOR ADDITIONAL FEES :i ~hows to whom Shows to whom, Addressee Only '. and da~e date, and where %~,~.~ delivered delivered ~ 50~ fee ' "~'".' POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL INSTRUCTIONS TO DELIVERING 'I~MPLOYEE ' · r--q Show to whom:andI'--] Show to whom, date, and[--1 Deliver ONLY date delivered ".' Uaddress where delivered U to addressee ( Addil'io~ral charges required for tl~'ese services) RECEIPT ,: ...,...~ ..... ,., Received the numbered article desCribed'below. REGISTERED fl0. CERTIFIED NO. 115199 -INSURED NO. DATE DELIVERED ~-, .~, ,a, "SHOW WHERE DELIVERED (o#1~ ff req#edeW) SIGNATURE OR NAME OF ADDRESSEE (Must always bellied ~#) Mr. H. D., Redding . sIGNATURE OF ADDRESSEE S AGENT, IF ANY GPO crF, J~LRECEIPT FOR CERTIFIED MAIL--30¢ C",J · -'~£NTTO' Mr T. S. Cate ~ST.^.~ / · * Shell Oil Co. any STREET AND NO. 430 7th Ave. a n'nc'ora8e~ Alaska 99501~:', ~.., ..'. ,~ ,~.,, , ' ' 'k ', ' EXTRA SERVICES FOR ADDITIONAL FEES ' Return Receipt Denver to ~hows to whom1 Shows to whom, Addressee Onl~"~.. and date date, and where delivered delivered ~ 50~ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL C INSTRUCTIONS TO DELIV. ERING EMPLOYEE Show to whom and Show to whom, when, and Deliver ONLY wlien delivered E~] J~ to addressee address where delivered (~l~dltional charges required ]or these services) RECEIPT , Receh,cd the numbered article described below. REGISTERED NO. ~ SIGNATURE OR NAME OF ADDRESSEE (M~stalwaysbefilledfn) 'Mr. T. S. Cate , ~ERTIFIED NO. ~ 115 204 INSURED NO. DATE DELIVERED FEB 19 1968 Jk SIGNATr~RE OF ADDRESSEE'S AGENT, IF ANY /?,.~ ' JSHOW WHER~DELIVERED (only i/requested) l, AGO 851942 GPO i ~'~r-3.~RECEIPT FOR CERTIFIED MAIL--30¢ ? i SENTTO [v~e ~e Ce ~Ta,JJ'J~LSOJ'J. Atlantic Richfield Conmanv ' STREET AND NO. ' ' " '~:' ' " .' '," P.O. Box 360. -',L': P. O., STATE, AND ZiP CODE ~'" ~' ' Anchorage, Alaska 99501 !~'. ., EXTRA SERVICE~' FOR ADDITIONAL FEES %.;' ' 7' , Return Receipt Deliver fo ' ,".,~ ~hows to whom Shows to whom, Addressee Only ' ' ," and date date, and where ..." delivered delivered E~ 50~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL INSTRUCTIONS TO DELIVERING EMPLOYEE []Show to whom and Show to whom, when, and Deliver ONLY when delivered I~]address where delivered,, ~ to addressee (Additlo~al charges required fOr ~hese services) RECEIPT , Rece~ed the numbered article described below. REGISTERED NO. ~k SIGNATURE OR NAME OF ADDRESSEE (M#$talways be filled ln) Mr. H. C. Jamtson CERTIFIED NO. AGO 851945 ~ ~/ ~ e55--16~71548-7 GPO !.,.0 ~" SENT TO Mr. E. B, Muehlberger, Shell STREET AND NO. .... 430 7th Ave., P. 0,, STATE, AND ZIP CODE 'Anchorage., _.Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES Return Receipt ~hows to whom Shows to whom, and date date, and where delivered delivered ~ 10~. fee ~ 35~, foe J ,,' ....... POSTM &J~ K ~ I.-'~- C\ OR DA,TR .... Oi,'~'~.~.- .... /' ',J,/" .? ',,,'-A:.~ , i ~ ,.. -' .,. ~ Deliver ~o I '" ..... :,,,.L-~ Addressee Only >0D Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ~':!*~'?:!'I.NSTRUCTI'oNS TO DEU'VERING EMPLoyEE,,',..'.' ] ;,? jv,7"~ '~'ow to whom and I-'] Show to Nhom, date, and r-'l Deliver ON[~.'-:. J I I date delivered , I..._1 address where delivered ' I I tn admessee .' J (Additional charges reqtdred/or these services) · '. . RECEIPT ' Received the numbered article described below. REGISTERED NO, j~l~ SIGNATURE OR NAME OF ADDRESSEE (~USt a/w~y,~ CERTIFIED HO, i15056 w SIGNATuR~ O~ ADDRESSEEs AGENT, iF ANY _ DATE DELIVERED J. SHOW WHERE DELIVERED (on~ g requeste~ , RECEIPT FOR CERTIFIED MAIL--30¢ SENT TO Mr. F. A. MacDousall STREET AND NO. / 430 7th' St. P. O., STATE, AND ZIP CODE Anchorage, Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES . Return Receipt Deliver to ~howe to whom Shows to whom, Addressee and date date, and where delivered delivered [] 50~ £ee POSTMARK OR DATE POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL .. INSTRUCTIONS' TO DELIVERING EMP..LOYE.E r.-. Show to whom and Show to whom, date, and I--"1' Deliver ONLY date delivered E~ where address delivered U'to addressee (Additim~al charges required/or these services) RECEIPT Received the numbered article described belom. REGISTERED NO. SIGNATURE OR NAME OF ADDRESSEE (]~Just always be filled Sn) ' 8 co CERTIFIED NO. 11505 7 ;IGNATURE OF ADDRESSEE'S IF ANY "':"' ' ' INSURED NO. )"";*',,: ' , DATE DELIVERED SHOW WHERE DELIVERED RECEIPT FOR CERTIFIED MAIL~30¢ SENT TO POSTMARK Attorney Joseph Rudd -(shell Oil C~ _ STREET AND NO. :] , ., t.,,-,~ 1332 ..... .,,:.i'j':,] .. ' ";';"'.. P. O., STATE, AND ZIP CODE ,: , Anchorage, Alaska 99501, !::~ ,',}': :' EXTRA SERVICES FOR ADDITIONAL FEES ' ' " "'" ' Return Receipt Deh'ver to '"",' ' ~hows t~ whom Shows to whom, Addressee Onlf,.~ ' ' and date date, and where, "~':/!{ "'~'" delfvered delfvered E~ 50~ POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- 'See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL ~r~,-- [--q Show to whom'and r-'q Show to whom, date, and Deliver ONLY I I date delivered I I address where deliyered' L.=J-' to addressee ( ~l ddltio~al charges required/or ther se 'services) , ..' RECEIPT. Received the numbered article described below. REGISTERED NO, CERTIFIED NO. __ 115.os8 . INSURED NO., DATE DELIVERED J-.SHOW WHERE DELIVERED (onlyffreq#eaed) ' " i AGO 851954. -- · · , ~ 05~10~71548-9 GPO ......RECEIPT FOR CERTIFIED MAIL--30¢ (Mobil oil Cd:. SENT TO Mr, Hoyle Hamilton STREET AND NO. ~ , ' ' ". P.O. Box 1734 P. O., STATE, AND ZIP CODE } . A.r, hnrn~_. Alaska ........ EXTR'~I[' SL~IVICE$ FOR ADDITIONAL FEES '. :~' Return Receipt Deliver to ~hows ~0 whom Shows to mhom, Addressee Only and date date. and where delivered delivered [] 50¢ .fee POSTMARK ~'~' ,,,OR DATE .~, .. ..... POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL "' II IINSTRUCTIONS TO DELIVERING EMPLOYi~E r-'", 'Show to whom and" Show to whom, date, ,a~ Deliver ONLY date delivered · ,' - to addressee address"where delivered , (zldd/t~o~al charges reqtdred'/or t~ese services) ' RECEIPT Received the numbered article described below. REGISTERED NO. CERTIFIED NO. 115063 ' INSURED NO. DATE DELIVERED . ./, SHOW WHERE DELIVERED ~ AGO 851957 i~IGNAT~RE OR NAME OF ADDRES~E.(i~JustalT{~.e.t~lledln) Gpo RECEIPTFOR CERTIFIEDMAIL--30¢ SENT TO ~ POSTMARK ' 0 AT ~~/1 _,.:...:~.,,.'q~",,,,. Armstron Sinclair Oil & G~~ ...... 42~ G Str,,eet , ' z,"7/' POD~0rm 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL 'fNSTRUCTIONS TO DELIVER'iNG EIVlP EE E Show to whom and Show to whom, date, and r'7'1 deliver ONLY date delivered,:'r'-l~__~ address where delivered ' ~'to addressee (,4dd/tio~zal charges req,dred /or these.servJces) ,. ' ' , .... ;," ,.4'. -... , L'~ i RECEIPT' ,, " ' ' Received the numbered article, de.s,c,:i~e,'~, beloia"." REGISTERED NO. CERTIFIED NO. 115062 INSURED NO. 'ocTDATE DELIVERED1 ~ ,~1671j SHOW WHERE DELIVERED CD !.0 · CO #32 RECEIPT FOR CERTIFIED MAIL--30¢ SENT TO POSTMARK Mr. Thomas A. Collins, Placid Oil STREET AND NO. " R26 T Stree~ .... P. 0., STATE, AND ZIP CODE ~ .-'~.~,., Anchorage, Alaska 99501 ., EXTRA SERVICES FOR ADI~iTIONAL FEES Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only and date date, and where delivered delivered~ [ 506 fee ~x~g ~o¢ fee E3 35¢ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL .. ,, 'rT ......~ ..... -.~...~o.., ...... #32 "' INSTRUCTIONS TO. DELIVERING,, EMPLOYEE r"-"l Show to whom and' Show to whom,.date,',and' ~,,:Deliver ONLY ~ivered ~ address where delivered, .,[_.~J t0.,'addressee ( AddlHonal charges required /o~ these',sCrvices) RECEIPT Received the numbered article described below. REGISTERED NO. '~~~ bellied ~#) SIGNATURE OR NAME OF ADDRESSEE (Must always .' CERTIFIED NO. 115061 ~ .... INSURED NO. 'F SIGNATURE O,F ADDRESSEE S AGENT, IF ANY ~.,, DATE DELIVERED . , I SHOW WHERE DELIVERED _L- oct ' .. .. RECEIPT FOR CERTIFIED MAIL--30¢ SENT TO Mr. R. W. Ki 1 POSTMARK OR DATE: Standard Otl Co. of California o. .... 0., STATE/A.i~ 'ZIP'CODE ...... Anchorage, Alaska 99501 (~!~!~--a ,'~ EXTRA SERVICES FOR ADDITIONAl. FEES ';, ,..~ '"~ ..,.,..- and date date, and where dellvered delivered L~ 5o~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Ma.r.t?.66 ..... NOT ..FOR..IN?,~_N_A~IONAL MAIL INSTRUCTIONS TO DELIVERING EMPLOYEE when deliveredL__J address where deliveredL._J to addressee (Additional charges required for lhese services) , RECEIPT Received the numbered article described below. REGISTERED NO. 'k SIGNATURE OR NAME OF ADDRESSEE (Mustalways~lledJ~) ~ Mr. R. W. Ktllen /~ // ' ,~x :..../r4,~~~.~:~__~~....._~ ~, ,, DATE,, DELIVERED 'URE OF ADDRESSEE'S AP.~y~I~ 'ANY AGO 85.1966 RECEIPT FOR CERTIFIED MAIL--30¢ SENTTO, Mr . George M. Selinger POSTMARKoR DATE STREET AND NO. o. . Tulsa, Oklahoma 74102 [~.{ ~ and da,e date, and ~here . . .~ .. POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar, 1966 NOT FOR INTERNATIONAL MAIL · co tf32 INSTRUCTIONS TO DELIVERING EMPLOYEE Showto whom and Show to whom, when, and Deliver'ONLY when delivered [--"l ~ to delivered addressee where address ,, (Additional charges reqtdred for these services) RECEIPT Received~the numbered article described below. REGISTERED NO. ' ["il '31~G~NATURE OR NAME OF ADDRESSEE (M#st always be filled in) CERTIFIED NO. ~ ..... "::'.:... ~?' * ' 115251 ~ SIGNAT~RE'~DRESSEE'S AGENT, IF ANY DATE DELIVERED "'.. ' DEC 19 7} . ..... , COil RECEIPT FOR ~ERTIFIED MAIL~30~ -' ,, SENTTO Mr R. 0 Dunbar ~STMARK ' ' OR DATE Ph~llip~ Petrole~ Corporation STREET AND NO. ~P' ~ ,~ '. p. o. Box 419 ' ' /,c;:.'.~..,. ........... '"?..,..'... Anchorage, Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES ~"~,~, Return Receipt Deliver t~_%~j~ ~-/. , r',~ , ~hows to whom Shows to whom, Addressee and date date, and where~ ~",.,. ~..,, delivered delivered ' ~ 10¢ fee ~ 35¢ fee ....... , Cq 1-O POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL CO ~t32 "INS~RUC~ION~ TE ~ELIVERING EMPLOYEE [~llo:~t~l~:bm .'~nd {~! f~l~w!to whom, wl}en, and I---1 Deliv. e.r ONLY when delivqred, I I ,a, ddress where delivered I I to addressee ........................ (~4ddifional charges f'eO'uired for these services) ...... "'~' ......... '" RECEIPT .... Received, the numbered article described below. REGISTERED NO. , CERTIFIED NO, SIGNATURE OF ADDRESSEE'S AGENT, IF ANY INSURED N .... ' 0~",~"'3 ,." .~ SIGNATURE OR NAME OF ADD_R.ESS. E_E.(~.ustalw_aysbefille_d~n) R. O. DUnbar, Ph1111ps Pet. Corp. ¢0 C',J ~-,.--~ · ECEIPT FOR CERTIFIED MAIL--30¢ C( SENT TO Mr. H. C Jamison POSTMARK · ' OR DATE Atlantic Richfield Comnanv STREET AND NO. o. ' / Anchorage, Alasha 99501 k~k EXTRA SERVICES FOR ADDITIONAL FEES , k/~b Return Receipt Deliver ~hows lo ~o~ Shows ~o whom, ~ddressee On~ amd date date, amd where delivered delivered ~ 50~ fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL CO ~t32 I~TIONS TO-D~tN~L-(YlPEE~ I-G1 ~W'tb-Wfl0~d I---1 Sho~ tT0 ~ ,{~,,.. wl~, Fng'~ ,'~[ Deliver ONLY L~J/~ ~ve~ L__J addr~s~ Wherb ~ehvered" ~ to' addressee : :~,77 / RECEIPT .... ' .... .~ec~ved the numbered m'ticle described REGISTERED NO. , k SIGNATURE OR NAME OF ADDRESSEE (Must always ~e~lled in) 115253"' '" "' -':.... Fo.", s~ O.ATU "~F ADDRESSEE'S ~TE D~IVE~ED,',, ~' I t~ERk bELIVERE~(oM$ ~equeste~ ,~ ,-". ,. 4 m~/'' / CO ~32 Od AGO 85197'5 , o~6-x~-n6~-? o.o. ,. RECEIPT FOR CERTIFIED MAIL--30¢ SENTi"0 Mr. F K. Krebill',~ POST'MARK · OR DATE Pan American 'Petroleum Corn, .- : P. O. Box 779 ' P. 0., STATE, A~D ZIP CODE ' . Anchorage. Alaska 99501 EXTRA SERvicEs FOR ADDiTiONAL £ ~oX. 'd'/& Return Receipt Dellver ~hows andt°date whom date,Sh°wSand to whOm,where Addressee ~::f~,j .'~..../' delivered delivered ~ 50~ £ee "' .... POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) M.ac.1966 NOT FOR. INTERNATIONAL MAIL .............. CO ~32' '. ~ ~TIONS TO'~'~.i~.'i,.EMpLOy,EEr:..i'' gg-"~"i/~_w..to..wh~o~d F'-] Sho~ torWtfln~;, whbh~ ,~d ' .~. Dbliv~r ONLY ~ ~hmi ~eqiv~red '~ ~ ad~ress~!mre.delivered ~ to addressee_ ~ . ,,,,(~dditi~nal charges requi;~/or thds~ ~efv~ces) ..... ~eeeiveg t~e num~ereg ~rticIe g~cribeg REGISTERED NO, · CERTIFIED NO. SIGNATURE OR NAME OF ADDRESSEE (Must always befllled ~) ~r. F, K. Krebi11, Paa Am, 1:'et. SIGNATURE OF ADDRESSEE'S AGENT, IF ANY ~W WHERE DELIVERED (only if requested)" AGO 851978 ' %'xo-m~8. ? CO ¢f32 cott:~CEIPT FoR CERTIFIED MAIL--30¢ SE.TTO Mr. T. S. Cate Shell Oil Company STREET AN~ 430 Seventh Avenue P. 0., STATE, AND ZiP CODE ~ Anchorage. Alaska 99~01 EXTRA~SER~ICES FOR ADDITIONAL FEE~- ' Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only and date date, and where ~ lOi fee ~ 351 fee POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL COft32 ............................................................... INSTRUCTIONS TO DELIVERING EMPLOYEE L-~ Show to whom and r'~ show to whom, when, and Deliver ONLY when delivered ,_._., address where delivered ~___~ to addressee (Additional ch,'trges required ~or these services) RECEIPT · · Received the numbered article described below. ' CD OJ REGISTERED NO. ~. SIGNATURE OR NA.M.,E O.F,.~,AD..D. RE~SF, jE cm,fiE~ .o. ~ '~ ,. ~,k' ~~ " 115254 k SIGNATURE OF AD /X"~'-~Z,:'I AGO 851981 ' CO ~/32 RECEIPT FOR CERTIFIED MAIL--30¢, Mr. W. A. Armstr'on§ -- POSTMARK SENT TO ORJ~TE ,~&~.~ ,- ','v,,.~.~. Sinclair Oil and Gas Company ..... S~RE£T~P~O'G Street ......... P. 0,, STATE, AND ZiP CODE .. _~...o~nch~-~e ~ Alaska 99501 "' ,~c::.~':"; ec~,~"~,,~ /:',/ Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only and date date, and where delivered delivered ~ 50~ fee ~ lO~ tee ~ 35~ tee ..... ..... POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL . .. C0 I~32 ' ...... : ..... INSTRUCTIONS T0 DELIVERfNG,~.~MPLOYEE LX~ when delivered I I address where deliveredI I to addressee (Addltlo~al charges required Jor these services) RECEIPT : Received the numbered article described below. REGISTERED NO. ,. CERTIFIED NO. 115250 INSURED NO. DATE DELIVERED ' J SHOW WHERE DELIVERED (on/~Jj~requeste~) DIVISION OF MINES AGO, 85.t98/* GPO · RECEIPT FOR CERTIFIED MAIL--30~ SENT TO ir. Leslie E. Kell (Shell 0il Co.) STREET AND NO. lrlOR West 6th St, P. O., STATE, AND ZIP CODE t,-,,, Anc,,~lA,~_ C. al'[~. 90017 .... ]~(-'I~PfS~I~V[CfS FOR ADDITIONAL FEES Return Receipt Deliver to ~hows to whom and date delfvered · , ~ 10~ fee Shows tO whom, date, and where delivered [~ 35~ Addressee Only POSTMARK OR DATE POD Form 3800NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL :.~3,2::.... ~.. =~_.?..: ~' ,, .................. --~'[NSTI~UCTIONS TO' DELIVERING EMPLOYEE'" ..... ~how to whom and [-'1 Show to whom, date, and "1'~ Deliver ONLY L~..kate delivered I I address where delivered U to addressee '~ (~dditfonal charles reqtdred/or these services) ...... RgC['i,pT Received the numbered article described below. REGISTERED'N~ - ' ~.ATURE O~' N~OF ADDRESSEE 1 15067 ~ SIGNATURE OF ADORESSEE'S AGENT.JF ANY ~.~ DATE DELIVERED SHOW WHERE DELIVERED (on& f/requested) ..... "' . AGO 85 1 98 7 ~ -o66-x6-?~.~ RECEIPT FOR CERTIFIED MAIL--30~ SENT TO POSTMARK Mr, George M. Selinger, Skelly Oil CO.ORDATE ~hows to whom Shows to whom, Addressee One% anddate date, andwhere ~--~ dellvered delivered ' ~ 50~ , .... POD~orm 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL , , ' ~'~3'2 . . , I--1 Show to whom and r-'q Show to whom, date, and ~"Dellver'ONLY L_J date delivered . U address where delivered ' '.L.~..]: to addressee (~d,d,,,itJoual charges req~tired for t~ese.s, er~)' ', ' RECEIPT '"' '""' ',':" · Received the numbered article described below. REGISTERED NO. CERTIFIED NO. '~,,'! ".-':~ ,' ~ '~ ~' 115053 SIGNATURE OF ADDRESSEE'S AGENT, IF ANY INSURED NO. . DATE DELIVERED '1 SHOI~,WHERE DELIVE~ED~p~nlyi/requested) ' SIGNATURE OR NAME OF ADDRESSEE (Must always be~lledj#) AGO 851990 RECEIPT FoR CERTIFIED MAIL--30¢ Securitw Life Bldg. ~'~'lr ~ ;~I' - an~a~ d~e, and where ] , ~ ~.,,~0~ ,ee ~ 35~ fee I ~ au~ zee POD Form 3800 NO INS~RAMCE CON~'~A~E PRONIDED-- (See o~her ., Mar. 1966 NOT FOR INTERNATIONAL MAIL ' ' CD CD CZ) L,© I INSTRUCTIONS TO DELIVERING EMpLoYEE I r"-Y Shew to 'Who~"and ["-1 Show tO Whom, date. and '~'=Deliver ONLY I I I date delivered U address where delivered I I to addressee [ (Additional charges required/or these services) RECEIPT Received the numbered article described below. q REGISTERED NO. kSIGNATURE OR NAME OF ADDRESSEE (~lustalway$ 6ej~lledln) CERTIFIED NO. : , -1~1~,~~~~ ~~ .'/'~7z:~9' / ,, ~*':""T ~ ' ' ' '~ ...... .J ....... RECEIPT FOR gERTIFIED M~IL~30f SENT TO POSTMARK OR DATE _ Hr. Sidnev B. Richards(Pan Amertcan Petrol STREET .~,l~'O NO. EXTRA SERVICES FOR ADDIhONAL FEES ' Return Receipt Deliver to ~hows to who~ Shows to whom, Addressee Only and date date, and where delivered delivered ~ 50~ fee ~"",~,~o~/~ ~ 3~¢ ~. ,,, POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other Mar. 1966 NOT FOR INTERNATIONAL MAIL ,~ ~,~ ;~,i ....... ;':'. .......... , ...... -.,,,.,,/, ........... ,.. ...................... /~,~7::: INSTRUCTIONS TO DELIVERING EMP'LOYEE,~. Sllow to whom and['-"] Show to,hem, date, and F--1 Delifljr'ONLY date delivered L_Jaddress Wllere delivered L_J to addressee (Additlo,' Ll charges reqrdred./or these services) . RECEIPT Received the numbered article described below. REGISTERED NO. ' S ' . kSIGNATU~REORNAMEOFADDRESSEE(Mu'talway,'~j~Iledi~) 'FS:, '.~,.~ L ' ~ ', ~ , 1 ·" ' , .~ ~-- ,,~",,'. AGO 85t996 RECEIPT FO'R CERTIFIED MAIL--30¢ SENT TO ~,,~,.~T M A RK . M~, N, F. Kaelber~ Shell Oil STREET AND NO. /:~F · 430 7th' ~ve. P. O., STATE, AND ZIP CODE Anch~ a~e, Alaska ~ ~ ~ ..,~ EXTRA SERYICE$ FOR ADDITIONAL FEES to~ Return Receipt Deliver ~hows to whom Shows to whom, Addressee OnIy and date date, ~nd where delivered delivered ~ 50~ fee ,,, POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other s/de) Mar. 1966 NOT FOR INTERNATIONAL MAIL "1'" INSTRUCTIONS TO DELIVERING EMPLOYEE 'l'i' r--I ShOw'to whom ~nd r-'l Show to whom, date, and I'"-I Deliver ONLY L._.J rlatl~ delivered ' L-.[ address where delivered I I to addressee i :'~ (Additional charges reqttiredJor these services) ,. [ il RECEIPT Received the numbered articl.e described below. REGISTERED 'HO. ESIGNATURE OR NAME OF ADDRESSEE (]~ustalways heft/led in) CERTIFIED' NO. ~ . DATE DELIVERED //-/7- ? c~ [aD GPO SENT TO Mr. George M. ~elinger POSTMA"'K - OR DATE gl~allv Oil. Comoanv STREET AND ,O. ' .... - , r" - Tulsa, Oklahoma 74102 '~' ," EXTRA SERVICES FOR ADDITIONAL FEEi 'fi '-- "' ..... Return Receipt Del/vet to "~ """ ~hows to whom Shows to whom, Addressee Only'" "7' deliveredand date date,deliveredand where~ ......:_~ ',, %,~//." .. ~ 50~ fee , Form 3800NO INSURANCE COVERAGE PROVIDED-- See other ~;de) Mar. 1r NOT FOR INTERNATIONAL MAIL , CF. tt 32R I SkOC INSTRUCTIONS TO DELIVERING EMPLOYEE I"'""1 Show to whom andI--'1 Show to whom, date, and ~ Deliver ONLY date delivered .. L._J where .. address deli,vered to addressee · U ' ' (Additional charges required/or these services) RECEIPT ' Received'the nun bered article ldbscr ibed below. REGISTERED NO, CERTIFIED NO. 115292 ,.. INSURED NO. ' · ,, DATE DELIVERED iASIGNATURE OR NAME OF ADDRESSEE (3Iustalu~aysbefillcd~n) ,. AGO 85200.2 i o.~-:o-~..-. ,.. CF o · RECEIPT FOR CERTIFIED MAIL--30¢' .. ~.., A x. SENT TO Mr. H C, Jamison POSTMARK · OR DATE A~la~tic Richfield Company STREET AND .0. p. o. ~ox ~o. ,,.'~'~ P. O., STATE, AND ZIP CODE Alaska Anchorage, 99501/ EXTRA SER~ICES FOR I~OlTION~L FEES ~'~ /~ Chows ¢o who~ Shows to whom, ~ddressee 0 and date dale, end where ~ ~' delivered delivered ' ~ 50~ fee '~' i i i POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL 'CF ¢/32'R-' ' ' .. ARC" INSTRUCTIONS TO DELIVERING EMPLOYEE ~~ Show to whom and O Show to whom, date, and' O De]iver ONLY ~ date delivered "' address where delivered 'to addressee (Additional charges required for these services) " 'RECEIPT ,. Received the numbered article described below. REGIS'~ERED NO. ~. SIGNATURE OR NAME OF'ADDRESSEE (Must alw~s be:fi/ledJ~) ~o-~' ' --~ ~,~y.h ..... " ": ' ' , " ,..;..'/ ~., 115291 AGO 852005 REC'Ei p-~" Fo R: CERTIFi ED' MAi L__30¢ CF GPO SENT"TO Mr. R. W. Ktllen POSTMARKoR DATE !//'' Standard Oil Co. of Calif STREET AND NO. P. O. Box 7-839 ,,'" ~'~ ........ ~ ~'~ , ,,. ~ , / P. O., STATE, AND ZIP CODE /~ /' / :~ . ',.~ A as a ggS0 ..,.,.....,,, ..,,.., ./ ~hows to whom Shows to whom, Addressee Only , and da te date, and where delivered delivered ~ 50~ fee ~ ....... POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL CF ~/32R SOCAL ' INSTRUCTIONS TO DELIVERING EMPLOYEE r--]Show to whom, date, and Deliver ONLY address wlmre delivered I--"] to addressee ( Addltlon~l charges required/or these services) RECEIPT Received the ~umbered article described below. R~TERED .0. ~k SIGNATURE OJV~IWAME OF ADDRESSEE ' 115297 ~ SlGNAT~F ADD~~GE~: IF o~ ~ AGO 85,?.008 C~ CF f!)2]zRECEIPT FOR CERTIFIED MAIL--30¢ SENT TC~.[r' W. A Armstrong POSTMARK · OR DATE Sinclair Oil & Gas Co. STREETi~t National Bank Bldg. t,,,-h~,, ..,. Room 530,425 G Street , P. O., STATE, AND zip CODE Anchorage, Alaska 99501 EXTRA SERVICES FOR ADDITIONAL FEES C. qJ" ' Return Receipt Deliver to ~'~ ,, ~hows to whom Shows to whom, Addressee Only ,~./.:.. .~,j!., and date date, and where delivered delivered [] 504 fee '?.'7" POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL , . CF f/32R SO&GC INSTRUCTIONS TO bELIVERING EMPLOYEE .i-:l_Show to whom, date, and I-"q Deliver ONLY L..~.]Caddress where delivered I I to add)essee (jddJtJonal c/~arges requJred~or tt~ese services) RECEIPT Received the numbered article described below. REGISTERED riO. CERTIFIED NO, ., 115296 INSURED HO. SIGNATURE OR NAME OF ADDRESSEE (~l#stalway$ &e~lkd~) DME DELIVERED / ~ SHOW WHERE DELIVERED (onl~ iJ re~#eaed) ..... i AGO 857011 ' * ~"~--x~-7~4e'~o ¢; ~/~2~ RECEIPT FOR CERTIFIED MAIL~30¢ C~ GPO . SE.TTO Mr. II. D. Redding POSTMARK OR DATE Phillips Petroleum Co. STREET AND NO. <,!!~,i~ P 0 Box 419 .,...""' ...... " , · /, "P. O., STATE, AND ZIP CODE' //,,,/' ' Anchorage, Alaska 995~'~'.'" , 'e~ ,,,-~;.,' '~' Return Recel pt DeHve~ ~hows to whom Shows to whom, .Addressee 0~';~ ,'~~k~,.,~. ~,,',:.'.~' and date date, and wllere "'~ ~ ~*-'~.' ~' ~livered delivered ~ 50~ fee '"" ~~~" POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL 'CF ~'~ 32R PPC ... INSTRUCTIONS TO DELIVERING EMPLOYEE ~ SIIOW ~0 whom a,d. r'~ Show to whom! d,~e, arid r~ Deliver O,~, date delivered U address where delivered U to addressee ( zldd/tJo~t~,al ch,zrges reqtdred for these services) RECEIPT ' Received the numbered article described below. REGISTERED NO. CERTIFIED NO. 115293 INSURED NO. WttERE DELIVERED (only if requested) DATE DELIVERED J SIiOW ./,.-~~ AGO 85201~. SIGNATURE OR NAME OF ADDRESSEE (~l#st always be Jilled i#) SIGNATURE OF ADDRESSEE'S AGENT, IF ANY CF ~I32~.RECEIPT FOR CERTIFIED MAIL--30¢ , SE,TTO Mr T S Cate mSTM^,W · ' ° OR DATE Shell Oil Company ,, STREET AND NO. Seventh Avenue 430 Anchorage, Alaska EXT~'A SERVICE~ ~OR ADDITIONAL FEES /_ ~hows to whom Shows to whom, Addressee 0~: POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Ma~,=196§ . .NOT FOR INTERNATIONAL MAIL CF {J32~ ,' ShOC INSTRUCTIONS TO DELIVERING EMPLOYEE , 'r-'-I Show to whom andr--I Show to whom, date, andF"-I Deliver ONLY date delivered ' U address where delivered U to-,addlessee (~4ddftfon. al charges required/or these s'ervices) RECEIPT * · Received 'the hum bered article described below. CF ft 3211 REGISTERED, NO. kSIGNATURE OR NAME OF ADDRESSEE (~lust always beC. lied DATE DELIVERED J SHOW ~fl~RE DELIVERED (only i/re~#ested)." FEB 2 G I , · ~ A GO 8 5 2 01 7 r o.H~TX..~ , RECEIPT FOR CERTIFIED MAIL~30~ sENTTo Mr R. B Giles POSTMARK · ' OR DATE Pan American Petroleum Corporation STREET AND PlO. .. , Security Life Building,. P. 0., STATE, AND ZIP CODE Denver, Colorado, 80202 , u:.) ,, ...... "(-l',~ : .... EXTRA SERVICES FOR ADDITIONAL FEES ~., " .... Return Receipt Deliver to ~hows to whom Shows to whom, Addressee Only ', ..,.. , ....... and date date, and where ..... .2'"" .' delivered delivered E~ 50~ £ee .:.'~_ ................... ' ~ ~o~ fe~ E3 35~ ,,, C',J. · POD Form 3800 NO INSURANCE COVERAGE PROVIDED-- (See other side) Mar. 1966 NOT FOR INTERNATIONAL MAIL CF' ~32R , PAPC ' - f ' INSTRUCTIONS TO DELIVERI.NGi'EMPLOY'i:E r--,_Show to whom add Show to whom, date, and Deliver ONLY [ ~_~Kdate delivered '' O address where delivered ~ to addressee (z~dd/t/ottal charges reqtdred/or these services) , , RECEIPT .:. Received the numbered article described below. . REGISTERED NO. ~ SIGNATUR~R.~AME OF ADDR'ESSE~MusI always be~lledin) ~RTIFIED NO. '"/'~ , 115294 ~ SIGNATURE OF ADDRES~[~s AGENT, IF ANY ,.su"E..o... ~.<'~ ................. ' ' ' ' DATE DELIVERED I,:SHOW~HER~ELIVERED AGO 852020 FORM SA - I B MEMORANDUM TO: I-- Charles F. lte~bert FROM: Director State of Alaska DEPARTMENT OF NATURAL RESOURCES DIVXSIOlq OF OIL At~D (IAS DATE : SUBJECT: January 22, 1971 Extension of Conservation Order ,lqos__~. 32 and 61 for an Additional 120-Day Period Euclooed is a copy of our Ns. rios to CoOk Inlet Cas Producers which extends Conservation Order Nos-. 32 and 6t, details the extent of the ~.larlng, and advises the produeer~ of'a forthconing hearing,. We p,lan to mail ~his early next week to our Oil sad Gas Conservation maiItng list, ~td, :ah tndad~s: i:he le~htoro. Pleam~ T~ or call us Monday ii you have. any obJec~ions, and ve would apprs'e~, at~, your tho~h,ts ~'th respect to the heari~'g:. Wore speei~ically, do you have any pa~cUlar date. or locat-lon ~ mind, or do you ~sh to coot~linate wt~h Senate and House ~o~reas Com~i:tee? Enclosure AGO 852027 ALASKA OIL AND GAS CONSERVATION COMMITTEE January 21, 1971 SUBJECT: Extension of Conservation Order Nos. 32 and 61 for an Additional .120.-.D. ay Period The Alaska Oil and Gas Conservation Committee has reviewed the affidavits and statements submitted pursuant to Conservation Order Nos. 32 and 61 and directive dated July 15, 1968. Essentially all of the equipment on the thirteen oil-producing platforms in the Cook Inlet have been converted to use casinghead gas as fuel. Additional equipment to be installed in the foreseeable future on the Grayling, Dolly Varden, King Salmon, Monopod, MGS "C" and Granite Point Anna and Bruce platforms will be fueled by casinghead gas and consume an estimated 7,200 MCF per day. The attached table tabulates pertinent production data by fields. In 1970 casinghead gas produced at Cook Inlet platforms averaged 3,016,823 MCF per month; of this amount 2,518,414 MCF per month, or 83.5%, was flared. Elaring of Cook Inlet casinghead gas increased from 6,120 MCF per day in 1969 to 7,540 MCF per day in 1970, or 12.8%. The Committee believes a market may exist for the gas now being flared. Decision Zt is the Committee's decision that the operators are beneficially utiliz- ing the casinghead gas to a substantial extent but that a market may exist for the gas now being flared and its development should be encouraged by every means possible other than reducing ultimate recovery of oil. Directive' Conservation Order Nos. 32 and 61 are extended for an additional 120-day period, from December 27, 1970 through April 26, 1971. A public hearing on the matter of extension of Conservation Order Nos. 32 and 61 beyond the April 26 termination date will be held upon not less than 30 days notice. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee AGO 85 20,Z8 Comparative Disposition of Casinghead Gas Produced Monthly Average Casinghead Gas in Cook Inlet Fields Granite Point Middle Ground Shoal McArthur River Trading Bay Totals Produced MCF 722,390 500,517 797,048 552,322 2,572,277 1969 Flared MCF Utilized Produced % MCF % MCF 649,632 415,354 679,436 489,204 2,233,626 89.9 72,758 10.1 818,452 83.0 85,163 17.0 511,838 85.2 117,612 14.8 1,130,443 88.6 63,118 11.4 556,090 86.8 338,651 13.2 3,016,823 1970 (11 Months) Flared MCF % MCF Utilized 712,308 87.0 421,466 82.3 916,429. 81.1 468,211 84.2 2,518,414 83.5 106,144 90,372 214,014 87~879 498,409 13.0 .17.7 18.9 15.8 16.5 1970 Monthly Average Casi~nghead-Gas Fields Granite Point Middle Ground Shoal McAr thur River Trading Bay Totals Produced MCF ± % of 1969 818,452 511,838 1,130,443 556~090 3,016,823 +13.3 +2.3 +41.8 +0.7 +17.3 Flared MCF ± % of 1969 712,308 421,466 916,429 468~211 2,518,414 + 9.6 +1.5 +34.9 - 4.3 +12.8 Utilized MCF ± % of 1969 106,124 90,372 214,014 87~879 498,409 +45.9 +6.1 +82.0 +39.2 +47.2 TO: BURRELL FROlvl: WALL i i',IGTON DATE: DECEMBER 30, 1970 TIME: 9:20 AM COI~4MISSt<.,NER APPROVED USE OF .ALL DAYA IN NO FLARE NOTICE. / AGO 852032 PAN AMERICAN PETI OLEUM CORPOP. ATION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 November 25, 1970 File: AMR-2093-986.511 Re: Beneficial Re-Use of Gas Produced MGS and Granite Point Fields Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 I D,R ~, --'f"'c. ENo I / -_.[? I--?. ..... t.2 ~ ~'-I I ~ e~c~ I ..... J-'l O~OL I'-~ 0 ..... L J~ .,.-~ ~.. J3 CONFER: FILE: Dear Mr. Marshall: On behalf of the Chakachatna Group of companies, we hereby request administrative extension of Conservation Orders 32 and 61 for another 120 day period, starting December 28, 1970. Since our affidavit of July 30, 1970~ Unit Well No. 2 on South Middle Ground Shoal Platform Dillon was converted to water injection on. .August 19, 1970. Water injections are satisfactory with favorable response being noted at both Platform Dillon and MGS Platform Baker. Water injections at both of these platforms are causing the reservoir pressure to increase which will conserve gas by minimizing produced gas-oil ratios. Equipment now capable of using casinghead gas as fuel is as follows: MGS- Baker _MCFD 2 AC Generators (one 650 HP and one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump _336 1,079 SMGS - Dillon... 8 Waukesha Engines (Kobe) 1 Steam Generator 1 AC Generator (Gas Turbine Driven) . 1 Turbine Pump .... !IV I! 11970 ~.,,, i,,.,,',,' Cf ~CFD 346 168 336 336 1,186 AGO 852033. Mr. Thomas R. Marshall, Jr. November 25, 1970 Page 2 Note: The one AC generator (gas turbine driven) provides sufficient power to replace 2 AC generators (Waukesha gas driven) previously shown in our affidavits on the Dillon Platform. If lower operating costs result by virtue of this change, additional gas turbine driven generators will be installed on our Other operated Cook Inlet platforms. (our last affidavit included the gas turbine driven AC generator with Bruce Platform equipment; how- ever, an equipment failure on Dillon Platform necessitated the revised installation.) ,~r,a.n,!te Po~int- Ann~ 1 Steam Generator 1 Turbine Compressor 6 Waukesha Engines (Kobe) 2 AC Generators ~CFD 168 336 3~0 1,123 .G~ranite Pointr _Bruqe 1 Steam Generator 5 Waukesha Engines (Kobe) 2 AC Generators MCFD 168 216 ....... 3_60 7~4 Future Granite Point 4 Turbine Pumps 1 Turbine Compressor 2,400 336 2,736 Note: Operation of the turbine compressors is currently alternated between Granite Point Platform Anna and Bruce; therefore, only one unit is in actual operation at a time. After waterflood start-up, however, the second turbine compressor will be required full time. Egat_.EpKg!and Treatin~ Fac%lity 1Freewater Knockout 1 Treater 2 Glycol Heaters (Winter Only) MCFD 206 206 590 ~. GO 8.5 2 0 3½ Mr. Thomas R. Marshall, Jr. November 25, 1970 Page 3 Water injection pump vibration which has caused the delay in water injection start-up from both Pan American operated platforms in Granite Point Field has been essentially eliminated by the manufacturers. We are now hopeful that water injections will commence during January, 1971, at which time four gas fueled turbine driven injection pumps and the additional turbine compressor will go into service. Yours very truly, cc: See Attached Mailing List AGO 852035 MAILING LIST Mr. B. L. Faulk (3) Shell Oil Company 430 7th Avenue Anchorage, Alaska 99501 Mr. F. L. Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1743 Anchorage, Alaska 99501 Mr. Ralph G. Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr. E. F. Griffin (3) Union Oil Company of California 507 West Northern Lights Boulevard Anchorage, Alaska 99503 Mr. F. Ko Krebill Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. Ho W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. T. J. Files Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr. Howard Slack Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 AGO 852036 STATE OF COLORADO COUNTY OF DENVER SS G. J. Ross, being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his supervision and direction, that he is familiar with the information contained in the Application, and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. G. J. Ross Subscribed and sworn to before me this 25th day of November, 1970. .Notary Public AGO 85203'1 SHELL OIL COMPANY SHELL BUILDING 1008 WEST SIXTH STREET LOS ANGELES, CALIFORNIA 90054 1 970 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Procupine Drive Anchorage, Alaska 9950L~ TELEPHONE: 482-3131 .......... 3 GEOL Attached in accordance with your directive dated October 9, 1970,/-'Fi'[~7 ___]_. is an affidavit detailing Shell Oil Company's efforts toward gas utilization' at Middle Ground Shoal field made in the period following our previous affidavit of duly 28, 1970. We request administrative extension of Conserva- tion Order No. 32 without hearing for another 120 day period to be effective starting December 28, 1970. RVV:JB Yours very trA~l..y, F. A. MacDougall Division Production Manager - North West Coast Division Attachment cc - Atlantic Richfield Company w/attachment .Standard 0il Company of California w/attachment Pan American Petroleum Corporation, Denver (4) AGO 852'038 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re' The beneficial use of gas produced as ) a result of crude oil producing operations ) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field May 10, 1968 AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASlNGHEAD GAS State of California ) ) County of Los Angeles ) SS says. Comes now F. A. MacDougall, being first duly sworn, and deposes and 1. That he is Division Production Manager of Shell 0il Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and At[antic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated July 28, 1970, the following steps with regard to conservation and utilization of casing- head gas have been taken: a. Water injection has been continued in our Middle Ground Shoal Field waterflooding pressure maintenance project which is designed to maintain the reservoir pressure above the saturation pressure and to thereby minimize producing gas:oil ratios. b. One idle 950 HP diesel engine is being converted from diesel fuel to casinghead gas fuel for the purpose of driving a new gas lift compressor scheduled to be delivered and installed in December, 1970. "c,i' c. The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel- P1 atform A Normal Maximum Fuel Requirement MCF/D Steam Generators (converted from diesel fuel) 150 700 HP AC Enginators (converted from diesel fuel) 404 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors 77 384 P1 atform C 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower 526 8O Steam Generators (converted from diesel fuel) 950 HP AC Enginators (converted from diesel fuel) 150 365 v 660 HP Gas Lift Compressor 116 1100 HP Gas Lift Compressor 192 2 Injection Pumps 1 Oxygen Stripping Tower Onshore Treating Facility 1 Gas Dehydration Unit 1100 HP Gas Turbines Driving Water ~~ OFFICIAL SE~L ~". ~[~/~l NOTARY PUBLIC-CALIFORNIA ~ LOS ANGELES COUNTY My Commission Expires June 1, 1974 1008 West 6th St., Los Angeles. Calif. 90054 526 120 !' 100 SUBSCRIBED AND SWORN TO before me this ./~--~'~ ~' day of 2'/~O~~, 1970. Notate'in and for the SLaLe of California ,,AGO 8:5 20~+ 0 DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS KEITH H. MILLER, GOVERNOR 3001 PORCUPINE DRIVE-ANCHORAGE 99504 ALASKA OIL AND GAS CONSERVATION CO~{ITTEE October 9, 1970 TO: COOK INLET GAS PRODUCERS SUBJECT: Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Day Period The Alaska Oil and Gas Conservation Committee has reviewed the affidavits and statements submitted pursuant to Conservation Order Nos. 32 and 61 and directive dated July 15, 1968. Virtually all of the equipment on the thirteen oil-producing platforms in the Cook Inlet have been converted to use casinghead gas as fuel, and water injection equipment to be installed in the near future will likewise be fueled by casinghead gas. There is no evidence that amarket presently exists for the gas being flared. A substantial decrease in the volume of gas being flared has occurred and it is the Committee's opinion the flared volume will continue to decrease. Decision It is the Committee's decision that the operators are beneficially utilizing the casinghead 'gas to a substantial extent in view of the present lack of a market for the gas being flared. Directive Conservation Order Nos. 32 and 61 are extended for an additional 120-day period, from August 29, 1970 through December 27, 1970. Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by November 27, 1970. Additional affidavits may be requested during this extension period. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee :AGO 8520~t'1 · Cook Inlet Gas Producers Page 2 October 9, 1970 Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Day Period Concurrence: Chairman Alaska Oil and Gas Conservation Committee Member Alaska Oil and Gas Conservation Committee AGO 8320 Mro Bo Lo Faulk (3) Shell Oil Company 430 7th Avenue Anchorage, Alaska 99,501 Mr o .Fo Lo Franz Skelly Oil Company 108,8 Lincoln Tower Building Denver, Colorado 80203 Mr° Wo Go Christensen Mobil Oil Corporation Po Oo Box 1743 Anchorage' Alaska 99501 Mr.o Ralph Go Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr° Eo Fo Griffin (3) Mr o F0 K~ Krebill 'Union Oil Company of California Pan American Petroleum Corporation ,5.,07~,West Northern Lights Boulevard Po Oo Box 779 Anchorage,, Alaska 99503 Anchorage~ Alaska 99501 Mr o Ho W o Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80,2,02 Mr° To Jo Files Pan American Petroleum .Corporation Security Life Building Denver, COlOrado 80202 ,Mr° Howard Slack Atlantic Richfield Company Po Oo Box, 360 Anchorage, Alaska 99501 AGO 852043 Mobil Oil Corporation August 13, Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 1970 Dear Mr. Marshall' In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For an Additional 1Z0-Day Period," Mobil Oil Corporatio--'~ submits"T~e following information regarding the utilization of casing-head gas from the Granite Point platform. Since our affidavit of March 11, 1970, the installation of the 'water injection plant has been completed and final debugging is in progress. Well 24-13 was returned to an injector on May 1, 1970, and wells MUC ~I-1 and }~iUC ~I-Z were converted to water injection on June 23, 1970 and June 24, 1970 respectively. Our intent is to convert wells #12-24, ~42-23X and ~33-14 to injectors as rapidly as possible, hopefully by the end of this month. When the conversions are complete, equipment on board the platform capable of using casing-head gas is as follows: One (1) 800 KW Gas Turbine Generator utilizing about 210 MCF/D One (1) 1550 HP Gas Lift Compressor utilizing about 220 MCF/D One (1) 350 HP Gas Lift Compressor utilizing about 60 MCF/D Two (2) 1450 Hi~ Gas Turbine-Injection Pumps utilizing about 900 MCF/D One (1) Deaerating Column utilizing about 100 MCF/D OIL Abed OAS AGO 8520~ Thomas R. Marshall, Jr. -2- August 13, 1970 In addition to the above, Mobil has two treaters in operation, at the Granite Point Shoresite which utilize about 50 MCF/D when in operation. Further, Mobil furnished fuel gas for the two (2) 500 PIP gas engine driven shipping pumps installed at Granite Point which will utilize about 200 MCF/D under full load continuous duty operations. We are continuing in our ef£orts to utilize casing-head gas in ewer'?' beneficial way possible and respectfully request extension of Conservation Orders No. 32 and No. 61 commencing September 1, 1970. AVB.skn Very truly yours, C. C. Woodruff Division Engineer Alaska Division STATE OF ALASKA THIRD IUDICIAL DISTRICT This certifies that on this 14th day of August, 1970, before me, the undersigned, a Notary Public in and for the State of Alaska, per- sonally appeared IN. G. Sole, to me known and known to me to be the person described in and who executed the foregoing instrument, and acknowledged before me that he executed the same in the name and on behalf of said Mobil Oil Corporation, freely and voluntarily for the uses and. purposes therein mentioned. INitness my .hand and official seal the day and year to this certificate first above written. Notary Public for Alaska My commission expires 12-15-73 PAN AMERICAN PETROLEUM CORPORATION AN=~gAU~ Re: Beneficial Re-Use of Gas Produced MGS '~d 'Gra'nite' Poin't 'Fields''' :_...__ ~-.~. Mro Thomas Ro Marshall~ Jro .(3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001, Porcupine Drive Anch°rage~ Alaska 99504 Dear Mr.° Marshall: On behalf of the Chakachatna Group ..of companies, we".~hereby~_~ request administrative extension .of ..Conservation Orders~ and61~_~ for another 120 day period~ starting August 30 ~ 19'70o Since our affidavit of March. 23, 1970~ Unit Well No° 12 on South Middle Ground Shoal Platform Dillon was converted to water injection on April 9, 1970o In addition, a fourth injector~ Unit Well NOo. 2~ is scheduled for conversion during August~ 197~o Water injections are satisfactory with favorable'response being noted at both Platform Dillon and MGS Platform Baker° Water injections at both of these platforms eventually can be expected to increase reservoir pressure which will conserve gas by mini- mizing' produced,lgas-oil ratios° Equipment now capable of using casinghead' gas as fuel is as follows: MGS-Baker ---~~erators (one 650 HP and one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump 336 SMGS-Dillon --8~'-wauke$-ha Engines (Kobe 1 Steam Generator 2 AC Generators 1 Turbine Pump MCFD McFD 168 ,336 336 AGO 8 52046 Mr o Thoma~ .Ro Marshal.l,~ Jr o July .30~ 1970 Page 2. Steam Generator Turbine Compress'or Waukes'h'a Engines (Kobe) AC Genera=ors MCFD .336 259 3'60 Granite Point ~ Bruce 5 Waukesha .Engines (Kobe) 1 AC Generator (Gas Turbine Driven) 168 216 336 Note: The one AC generator(gas turbine driven) provides sufficient power to replace 2 AC generators (Wa~kesha gas driven)preViouslyshown in our affidavits on the Bruce Platform° If lower operating costs result by virtue of this change, additional gas turbine driven generatorswili be installed, on our other operated Cook Inlet platforms° Future Granite Point 1 Turbine Compressor MCFD Note= Operation of. the turbine" compressors' 'is currently alternated between Granite Point Platforms Anna and Bruce~ .therefOre~ only one unit is in actual operation at a time° After waterflood Startup, however~ the second turbine compressor will be required full. timeo East Foreland Treati~ Facilit 1 Freewater Knockout 1 Trea~r 2 Glycol Heaters :(Winter Only) MCFD 178 We remain hopeful of starting' up water injections from both Pan American operated platforms in Granite Point in september, 1970, at which time four gas fueled turbine driven injection pumps and the additional turbine' compre~sor will go into servi=eo Cc: See' Attached Mailing List STATE' OF COLORADO COUNTY OF DENVER SS' Ro Bo GILES being first duly ,swornupon 'oath .deposes and 'says 'that he is,'employed as an engineering ,supe,rvis'or by Pan Ameri'can Petroleum Corporation~ that the foregoing, Application has been prepared under his supervision and directions that he is familiar with the information contained'in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge, and belief° Subscribed'and sworn to before' me this, ,30th day of July~ 1970o N~tarY Publi My commission expires: AGO STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as ) a result of crude oil producing operations ) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field May 10, 1968 AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) Third Judicial District ) ss Comes now B. L. Faulk, being first duly sworn, and deposes and says: 1. That he is Division Production Superintendent of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated March 27, !970, the following steps with regard to conservation and utiliza- tion of casinghead gas have been taken: a. Water injection has been continued in our Middle Ground Shoal Field waterflooding pressure maintenance project which is designed to maintain the reservoir pressure above the saturation pressure and to thereby ~inimize producing gas:oil ratios. bo The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower Norma 1 Maximum Fuel Requirement MCF/D 150 404 77 384 526 8O Platform C Steam Generators (converted from diesel fuel) 950 HP AC Enginators (converted from diesel fuel) 660 HP Gas Lift Compressor 1100 HP Gas Lift Compressor 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower 150 365 116 192 526 120 FURTHER AFFIANT sayeth not. SUBSCRIBED AND SWORN TO before me this ~,~ day of ~ 19_~) ~o~ry Pub~c ':'in and ,for Alaska AGO 852051 SHELL OIL COMPANY 430 7TH AVENUE ANCHORAGE, ALASKA 99501 July 24, 1970 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached is an affidavit detailing Shell Oil Company's efforts toward gas utilization at Middle Ground Shoal Field made in the period following our previous affidavit of March 27, 1970. We request administrative extension of Conservation Order No. 32 without hearing for another 120-day period to be effective starting August 30, 1970. Very truly yours, B. L. Faulk Production Superintendent GRG/HAVS/ll Attachment cc: Atlantic Richfield Company (w/attachment) Standard Oil Company of California (w/attachment) Pan American Petroleum Corporation, Denver (4) RECE!VED JUL g 9 l /O DIVISION OF OIL AND GAS A GO 8 52 05.3 CONFER: -~. ENG'"- ~ '1 ENG .... :--,-,-I ..... --3 ENG 4 ENG 5 ENG ---- ._ 1 GEOL 2 GEOL 3 GEOL REV DRAFT ....... SEC ........ FIEE:Co.~ ~ ~ ~ I Union Oil and Gas ~i" ;ion: Western Region Union Oil Company of California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 279-4511 union Jaly 23, 1970 State Division of Mines and Minerals Department of Natural Resources $001 Porcupine Road Anchorage, Alaska 99S04 Attn: Mr. Thomas R. Marshall, Jr. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the Mc Arthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Orders 32 and 61. Eu~ene~F.' Griffin : Dis~r~ Operati Manager EFG 'mgl Enclosures - 2 JUL, 28 1970 DIVISION OF Oil. AND GAS ANCl..IORAGI~ AGO 85 205 · .,, Union Oil Co. - Operator Beneficial Use of Produced Gas Trading Bay Unit GRAYLING PLATFOR~ me B, Equipm.e, nt Now Usin. g Gas 2 Glycol boilers 5 Solar turbine driven generators 2 Solar turbine driven gas transmission compressors 4 Solar turbine driven gas lift compressors 2 Deoxygenator towers 6 Solar turbine driven waterflood pumps 1 Solar turbine driven crude oil pump (S0% load) Current Total Additions to be Made That Will Use Gas 3 Solar turbine driven gas lift compressors 1 Solar turbine driven AC generator Current Total MCF/D 100 10S0 700 1400 400 2100 17S "5925 .... 1050 350 1400 DOLLY VARDEN PLATFORM Equipment Now Using Gas 3 Solar turbine driven generators 2 Gas lift compresSor:,~:engines - 6000 HP 1 Steam boiler 2 Glycol heaters 4 Solar turbines for waterflood 1Deoxygenator tower Current Total lOSO 1000 25 275 1400 200 2980 Be Additions to be Made that Will Use Gas 2 Solar turbines for waterflood KING SALMON PLATFORM Equipment Now Using Gas Current Total 1 - 5000 HP turbine driven waterflood pump 1Deoxygenator tower 2 2000 HP gas lift compressors 2 1S00 HP turbine driven generators Current Total 700 700 DIVISIO~ OF Oil, AND GAS ANCHORAGE 1500 200 1000 1S00 4200 A GO 8 52 0 5 5 TRADING BAY UNIT (Cont.) B. Additions to be Made That Will Use Gas 1 Steam generator 1 Hot water boiler 1 1100 HP Solar turbine driven gas compressor Current Total MCF/D 120, 300 550 770 A~ B~ WEST FORELAND ONSHORE SITE E.q,,uipment Now Using, .Gas, 8 Heater treaters 5 Line heaters 2 Flow splitters 5 Electrical generator units (Standby) 1 Glycol dehydrator 2 Glycol boilers 2 LACT building heaters 2 Heaters for pump motors 2 CIPL Solar turbines 1CIPL Waukesha driven pump (Standby) 2 Skim tank heaters 1 Hot water heater Liquid extraction plant 1 Solar turbine driven electrical generator (80% load) 2 1100 HP gas compressors 1 Domestic range Current Total Additions to be Made That,Will Use Gas 1 Solar turbine driven generator Current Total 1000 275 500 55 110 5 S 7OO 10 S 2S0 260 7OO Vari ab 1 e 5875 350 350 A, TRADING BAY PLATFORM Equipment Now Using Gas R F C F I} 2 Glycol boilers 1 Cat AC generator 2 Gas lift compressor engines - 880 HP each 2 Cat DC generators 1Deoxygenator tower Current Total JUL 28 ]9/L DIVISION OF OIL AND GAS ANCHORAG~ 100 100 300 200 20O 906'" B. Additions to be Made That Will Use Gas 2 Solar turbine driven waterflood pumps Current Total 700 700 RCH:mgl 7-23-70 AGO 852056 PETROLEUM PRODUCTS July 7, 1970 TEXACO iNC. P. O. BOX 4-1579 ANCHORAGE, ALASKA 99503 Mr. T. R. Marshall, Jr. Executive Secretary Oil and Gas Conservation Committee Division of 0il and Gas State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Marshall: ~f. GE(J'[ Jl'~J C. ENG .. 3 ENG .... 4 CNg 1 ---:-"l GEOL J l<J ";i' j,.~ °~°~'--I,~l 3 O~OL I'1 .~.~v ....... J'l DRA~f' J J In compliance with the extension of Conservation Orders $ 32 and $ 61 dated May 1, 1970, we wish to advise you that there have been no changes in the gas utilization on the Texaco-Superior Trading Bay Platform "A" from the status indicated in our letter of March 16, 1970. Very truly yours, TEXACO Inc. ., :~., /1.17 <'"'"~. S ~larber Dist. Superintendent FAW: j om DIVISION OF Oi!',..A,,ND GAS ~GO 85'205T DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS :' KEITH H. MILLER, GOVERNOR / 3001 PORCUPINE DRIVE-ANCHORAGE 99504 ALASKA OIL AND GAS CONSERVATION COMMITTEE May I, 1970 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Order Nos. 32 and 61 for an Additional 12.0-Day' Period The Alaska Oil and Gas Conservation Committee has reviewed the affidavits and statements submitted pursuant to Conservation Order Nos. 32 and 61 and directive dated July 15, 1968. The Alaska Oil and Gas Conservation Committee has reviewed the record of'the testimony before the Alaska Senate Resources Committee in Juneau, Alaska, on March 20, 1970, and members of the Oil and Gas Conservation Committee have discussed the possibilities of gas utili- zation with Cook In let operators, consultants employed by the Executive and Legislative branches of state government, and with representatives of different segments of the oil and gas industry. Section 2158 of Title II, Alaska Administrative Code has been amended to strictly limit the production of gas well gas which is not beneficially util.ized. Virtually ail of the equipment on the thirteen oil-producing platforms in the Cook Inlet has been converted to use casinghead gas as fuel, and equipment to be installed in the near future will like- wise be fueled by casinghead gas. Subsequent to the January 2, 1970, extension of Conservation Order Nos. 32 and 61 a iow temperature liquid extract[on plant, designed to process approximately 40 million cUbic feet of cas[nghead gas per day and to recover approximately 2,500 barrels per day of liquids, went on stream at West Foreland. There Js no evidence that a market presently exists for the gas being flared. A substantial decrease in the volume of gas being flared has occurred and it is the Committee's opinion 'the flared volume wi il continue to decrease. 85:2058 MAILING LIST Letter to Cook Inlet gas producers dated May I, 1970 Subject: Extension of Conservation Order Nos. 32 and 61 for an Additional 120-Day Period Mr. Robert T. Anderson Union Oil Company of California 2805 Dena l i Street Anchorage, Alaska 99503 Mr. F. K. Krebill Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. C~aude H. Brown Texaco inc. P. O. Box 664 Anchorage, A.laska 9950 Mr. Morris L. Lowman Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Mr. William Faulk Pan American Petroleum Corporation Shell Oi~ Company Security Life Building 430 Seventh Avenue Denver, Colorado 80202 AnChorage, Alaska 9950~ Mr. R. B. Giles Pan American Petro Security Life Bui Denver, Col Mr. Robert Ha Ass i stant 360 K St reef, ]~i Anchorage, Alaska Mr. Thomas E. Department of Pouch M Juneau, Alaska Corporat ~ 33 Bakersfie Mr ..... L.' E. '.':'"": At'.lan±i c Ri.Ch '"P,' "O..Box 360" . "..Aa ch o rage ,... A.I.as'ka sources Mr. W.'G. .Mob i I Oi~ : P ..'i... 0 ,: An Cho rage, ni a 93309 ~sen 'J on AGO 8 5 2.0'59 Cook Inlet Gas Producers Page 2 May I, 1970 Dec i s i on It is the Committee's decision that the operators are benefi- cially utilizing the casi.nghead gas to a substantial extent in view of the present lack of a market for the gas being flared. Direct i ve Conservation Order Nos. 32 and 61 are extended for an additional 120-day period, from May I, 1970 or through August 29, 1970. Affidavits from Cook Inlet g. as producers showi.ng further efforts made to uti l ize casinghead gas will be due at least 30 days prior to the expiration of the ~20-day extension period or by July 30, 1970. Additional affidavits may be requested during this extension period. Jr. .. Ali. as ka:;']"6~i I' ..a'n.~i'] . · on Committee and Comm i ttee on Committee ~GO 852060 SHELL OIL 430 7TH ANCHORAGE, COMPANY AVENUE ALASKA 99501 MAR ? Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 ~ear Mr. Marshall: Attached is an affidavit detailing Shell Oil Company's efforts toward gas utilization at Middle Ground Shoal Field made in the period following our previous affidavit of December 1, 1969. We request administrative extension of Conservation Order No. 32 without hearing for another 120-day period to be effective starting May 2, 1970. Very truly yours, B. L. Faulk Production Superintendent GRG/KRW/bt Attachment CC: Atlantic Richfield Company (w/attachment) Standard Oil Company of California (w/attachment) Pan American Petroleum Corporation, Denver (4) AGO 852061 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as ) a result of crude oil producing operations ) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field May 10, 1968 AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska Third Judicial District SS Comes now B. L. Faulk, being first duly sworn, and deposes and says: 1. That he is Division Production Superintendent of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated December 1, 1969, the following steps with regard to conservation and utili- zation of casinghead gas have .been taken: a. Water injection has been continued in our Middle' Ground Shoal Field waterflooding pressure maintenance project which is designed to maintain the reservoir pressure above the saturation pressure and to thereby minimize producing gas;oil ratios. b. A gas dehydration unit has been installed at our Onshore Treating Facility. This unit dehydrates the gas that breaks out of the oil as it is treated and enables the use of this gas as fuel gas to fire our AGO 85,2062 heater treaters during cold as well as warm periods. Amount of gas con- served due to its use is approximately 100 Mcf/D. c. The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower Norma 1 Maximum Fuel Requirement MCF/D 150 404 77 384 526 80 Platform C Steam Generators (converted from diesel fuel) 950 HP AC Enginators (converted from (diesel fuel) 150 365 660 HP Gas Lift Compressor 116 1100 HP Gas Lift Compressor 192 1100 HP Gas Turbines Driving Water Injection Pumps 526 Oxygen Stripping Tower 120 FURTHER AFFIANT ~ayeth not. SUBSCRIBED AND SWORN TO before me this .~TZ~day of 7~Z~ .)~zgj~_~. , 197a AGO 852063 Notary Public in and ~or Alaska MAILING LIST Mr. R. L. Warden .(3) Shall Oil Company 430 7 th Avenue Anchorage, Alaska 99501 Mr o F. L. Franz Skelly Oil Company 1088 Lincoln.Tower Bui!ding. Denver, Colorado 80203 Mr. W. G. Christensen Mobil Oil Corporation P-.O. Box 17.43 Anchorage, Alaska 99501 Mr° Ralph Go Crews Suite 600 425. "G" Street Anchorage, Alaska 99501 Mr. E. Fo Griffin .(3) Mr. F. K, Krebill Union Oil Company of California Pan American Petroleum Corporation 507 West Northern Lights Boulevard Po O. Box 779 Anchorage, Alaska 99503 Anchorage, Alaska 99501 Mr. H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 8020'2 Mr. T, J. Fil.es Pan American Petroleum 'Corporation Security Life Building Denver, Colorado 80202 ' Mr. Ralph Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 AGO 85'206~t TRM ~ PA A nlCA P ?nO[ V COI POILkTIO " SECURITY LIFE BUILDING REL ~ DENVER~ COLORADO 80202 DiVISION OF O~L ;,.ND GAg ANCHORAGI~ FILE March 23', 1970 File: AMR-716-986. 511 Re: Beneficial Re-Ube' of Gas Produced, MGS and Granite Point Fields Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: On behalf of the Ch.akachatna Group of companies, we hereby request administrative extension of Conservation Orders. 32 and 61 for another 120 day period, starting May 1, 1970. Since our affidavit of December 18, 1969, the last of two generators on South Middle Ground Shoal Platform Dillon has been converted to gas fuel. Also, on Platform. Dillon two.wells, Unit Wells No. 7 and No. 11, began injecting water on December 21, 1969. A third injector, Unit Well No. 12, is scheduled for conversion this month. On Platform Baker, water injections are.continuing in a satisfactory manner. Water injections at both of these Platforms eventually can be expected to increase reservoir pressure which will conserve gas by minimizing produced, gas- oil ratios. Equipment now capable of using casinghead gas as fuel is as follows: MGS-Baker 2 AC Generators (one 650 HP and one 750 HP) 1 Steam Generator 1 Gas Lift Compressor 1 Glycol Regenerator 1 Turbine Pump MCFD 336 168 234 5 336 1'079 SMGS-Dillon 8 Waukesh'a Engines (Kobe) 1 Steam Generator 2 AC Generators 1 Turbine Pump MCFD 168 336 336 ~','186 AGO 852065 , Mr. Thomas. R. Marshall, Jr. March 23, 1970 Page 2 Granite Point - Anna 1 Steam Generator 1 Turbine Compressor (See Note) 6 Waukesha Engines (Kobe) 2 AC Generators MCFD 168 336 259 360 1,1'23 Granite Point - Bruce 1 Steam Geherat0r 5 Waukesha Engines (Kobe) 2 AC Generators 168 216 360 Note: Operation. of the turbine..compressors is. alter- nated between Granite Point Platforms Anna and Bruce; therefore., only one unit is in actual operation at a time. Future Granite Point '4 Turbine' 2,400 East Forelan..d.......?.reating..Facilit~ 1 Freewater Knockout 1 Treater 2 'Glycol Heaters (Winter Only) 20'6 206 178 Delays in delivery dates for water filtering equipment and some high pressure fittings will postpone startup of water injec- tions from both Pan American operated, platforms, in Granite Point from July until September, 1970, at which time four gas fueled turbine driven injection pumps will go into service'. cc: See Attached Mailing List Yours very truly, STATE OF COLORADO COUNTY OF DENVER SS R. B. GILES being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his supervision and direction, that he is familiar with the information contained in the Application and that the matters and the things therein .set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this 23rd day of March, 1970. , Notary My Commission expires July 26, 1970o 852067' Attention has been directed to the further utilization of casinghead gas now coming ashore at Nikiski on the eastside' of the Cook Inlet. There are four Middle Ground Shoals platforms (Pan Am, Baker and Dillon and Shell's A and C) and two Pan Am platforms (Anna and Bruce) at Granite Point. Compression consideration on the Middle Ground Shoals are restricted because of pipeline design consideration and the gas lift level now operative between platforms A and C. Compression must be installed on the four platforms to compress the gas from 50 to 1100 psi and the Granite Point gas from 185 to 900 psi on shore. After plant processing at 900~+, the gas would,~recompressed to 1250 psi for delivery to Swanson River 'Unit at 1200 psi. Six miles of 8 inch line is required to make this delivery. Because of the long-term design, delivery and installation time required, a commensurate date of January 1972 is realistic, if not optimistic. This casinghead gas remaining after fuel usage and fuel d~fficiency in 1980 is estimated to be 29,888 MMCF. The investment and other pertinent operating data is shown below: INVESTMENT Platform Compression (4900 HP) 2,992,000 · Onshore Compression (540 HP) Liquid Extraction Platn with 5-day storage (1000xSx30)' 6 Miles. 8" pipeline ,0 Total investment 297,000 2,150,000 554,000 5,993,000 AGO 85Z068 ., MAINTENANCE & OPERATIt)N Compressor (120,000 + 100,000) Plant (200,000 + 120,.000) Total $ 540,000/year 6% PW value 9 years (540,000) 3,672,.000 Total investment and expense L, IQ UID INCOME Plant GPM Recovery $9,665,000 Available C3 2.8 67,000,000. C4 1.4 gal 21,000,000 C~ .6 1,340,000 1 , 680,000 3,020,000. *Current compression recovery not available at plant , 6% PW Value¢~ years $2,240,000 ** C3 would have to be trucked to Anch.~8¢-4¢=4¢/gal could sell only 500 B/D with 3~1 winter-summer service for next 2-3 yrs assume 1/2 is sold at 4¢ TOTAL EXPENSE + O & M COST '$9,665,000 Liquid Recovery 24,0,000 Expense remaining $7,.425,000 7,425,000 30,000,000MCF 40.4¢/MCF t AGO 85:2069 · :AST FORELAND '. ~"L'.:' ' : .. o :.:-.':,~..'.j'...'; ....,,.' . .. ;., . .-..' · -. AGO 852070 ALAS",':' GAS G A'~: .., PROJ~G'F "'?2 ?~ ?T ~Z g/ · ~ (, 70 ,37~o ,~,27 AGO 85207[ MAILING LIST Letter to Cook Inlet gas producers dated JanuarY 2, 1970 Subject: Extension'of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Mr. Robert T. Anderson Union Oil Company of 'California 2805 Dena l i Street Anchorage, Alaska 99503 Mr. F. K. Krebili Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. Claude H. Brown Texaco Inc. P. O. Box 664 Anchorage, Alaska 99501 Mr. Morris L. Lowman Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1734 Anchorage, Alaska 9950 Mr. Dale Wailington, Deputy Commissioner Department of Natural Resources Pouch M Juneau, Alaska 99801 Mr. Tom Fi les, Division Attorney Pan American Petroleum Security Life Buiidi Denver, Colorado Mr. R. B. Giles Pan American Security Life Denver, Col Mr. Robert HE Ass istant Ati 360 K Anchorage, A · Mr. E Mr. R. L. Warden ~any venue .ka 99501 i i a 93309 ':':':::, L. E ~ W.i. IS'on :::: . :~ ::] ::i] ::;:]:]:::?:!::':]]]]]]ilAtlanti c R"i:ch"'~"i'~id ~:i!, ~any :]:i::i:]::]]],"":':'":':P; O; 'BOX 36'0',"::]':' Mr. Thomas E. commis~i Department of Pouch M Juneau Alaska 9~801" DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS KEITH H. MILLER, GOVERNOR Co, 3001 PORCUPINE DRIVE-ANCHORAGE 99504 ALASKA OIL AND GAS CONSERVATION COMMITTEE January 2, 1970 TO: COOK INLET GAS PRODUCERS ./ Subject: Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day Period Decision A review by the Oil and Gas Conservation Committee of the materials submitted in accordance with stipulations contained in Conservation Orders No. 32 and No. 61, as detailed by our original directive of July 15, 1968, has been made. It is the Committee's decision that the operators are actively pursuing a program to beneficially utllize the gas which is being flared D i recti ve Conservation Orders No. 32 and No. 61 are extended for an additional 120-day period from January 2, 1970, or until May I, 1970. Affidavits from Cook Inlet gas'producers showing further efforts made to utilize casinghead, gas will be due at least 30 days prior to the expiration of the 120-day extension period or by April I, 1970. Additional affidavits may be requested during this extension period. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee Concurrence: Homer L. Burrell Cha i rman Alaska Oil and Gas Conservation Committee Member Alaska Oil and Gas Conservation Committee AGO 85207A, SHELL OIL COMPANY 430 7TH AVENUE ANCHORAGE. ALASKA 99501 December 22, 1969 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 FiLE Dear Mr. Marshall: In reply to your letter of December 17, 1969 regarding specific amounts of gas consumed in the Middle Ground Shoal field, the equipment listed in my affidavit 'of December 1, 1969 have the following maximum fuel require- ments: Platform A 2 Steam Generators 3 700 HP AC Enginators 1 400 HP Compressor 2 1100 HP Compressors 2 1100 HP Gas Turbines 1 Oxygen Stripping Tower Maximum Fuel~ MCF/D 150 404 77 384 526 80 1621 Platform C 3 Steam Generators 2 950 ~IP AC Enginators 1 660 HP Compressor 1 1100 HP Compressor 2 1100 HP Gas Turbines 1 Oxygen Stripping Tower 150 365 116 192 526 120 1469 As you know, the total gas utilized in producing operations is re- ported to your office monthly on Form P-5. The actual gas used and the potential maximum requirements differ due to downtime, ambient temperatures, etc. which cause demand fluctuations. GRG/TLH:rmg AGO 8520?5 Very truly yours, Division Production Ma .~. STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as ) a result of crude oil producing operations ) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field May 10, 1968 AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) Comes now R. Lo Warden, being first duly sworn, and deposes and says: 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated July 22, 1969, the following steps with regard to conservation and utilization of casinghead gas have been taken: ao Water injection has been commenced in an additional well on Platform A (well A-33-1), a jointly owned well on Platform Baker (MGS 17595 #12), a jointly owned well on Platform C (C-Linewell #1) and in three further Platform C wells (C-34-23, C-23-26 and C-41-23). The conversion of these producing-status wells to water injection constitutes an integral part of our Middle Ground Shoal field waterflooding pressure maintenance development which is designed to maintain the reservoir pressure above the saturation pressure and to thereby minimize producing gas:oil ratios. bo The increase in the injected water volumes as a result of the above listed well conversions has required additional power from the gas turbines that drive the water injection pumps. Gas utilization for turbine fuel therefore, has increased on both Platforms A and C. AGO 85~076 The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Platform C Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower Steam Generators (converted from diesel fuel) 950 HP AC Enginators (converted from diesel fuel) 660 HP Gas Lift Compressor 1100 HP Gas Lift Compressor 1100 HP Gas Turbines Driving Water Injection Pumps Oxygen Stripping Tower FURTHER AFFIANT sayeth not. SUBSCRIBED AND SWORN TO before me this 1st day of December, 1969 ' ~ INo-~arY PUblic in-~nd fo~ Alaska My Commission Expires August d, ~I~ISlON O~ OIt AND GAS AGI3 8520'77 PAN AME1HCAN PETROLEUM COILOOI ION SECURITY LIFE BUILDING DENVER, COLORADO 80202 December 18, 1969 File: AMR-2530-986.511 Re: Beneficial Re-Use of Gas Produced, MGS and Granite Point Fields FILE Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and'Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: i While it appears through an oversight that we never/received approval of our last 120 day extension request dated August 4, 1969, my recent conversation with Homer Burrell indicates that another affidavit would be appropriate for sub- mittal at this time. On behalf of the Chakachatna Group of companies, we hereby request administrative extension of Conservation Orders 32 and 61 for another 120 day period starting, I assume, on January 2, 1970. For the period.since our affidavit of August 4, 1969, equipment conver- sions to gas fuel and conservation measures have been: 1. The first 750 HP AC generator of two generators on South Middle Ground Shoal Platform Dillon. 2. The gas fueled turbine to drive the water injection pump at Dillon° Also, on Platform Dillon two wells, Unit Wells No. 7 and No. 11, have been modified for water injection service. Injection start-up in August was unsuccessful due to pump and filter problems. We currently anticipate start-up by the end of this month. On Platform Baker, one additional well, MGS 17595 Well No. 14, has been converted to water injection to complete our scheduled end-to-end flood pattern. Water injections at both of these Platforms eventually will increase reservoirlpressure which will conserve gas by minimizing produced gas-oil ratios. Equipment now capable of using casinghead gas as fuel is as follows: MGS-Baker MCFD 2 AC Generators (one~650 HP & one 750 HP) 336 1 Steam Generator 168 1 Gas Lift Compressor 234 1 Glycol Regenerator 5 1 Turbine Pump 336 1,079 AGiO 852078 File: AMR-2530-986.511 - 2 - December 18, 1969 So..MGS-Dillon 8 Waukesha Engines (Kobe) 1 Steam Generator 1 AC Generator 1 Turbine Pump MCFD 346 1168 180 336 1,030 Future (lst Quarter,. 1970), 1 AC Generator (650 HP) 156 Granite Point - Anna 1 Steam Generator 1 Turbine Compressor (See Note) 6 Waukesha Engines (Kobe) 2 AC Generators 168 336 259 360 1,123 Granite Point - Bruce 1 Steam Generator 5 Waukesha Engines (Kobe) 2 AC Generators 168 216 360 744 Note: Operation of' the turbine compressors is alternated between Granite Point Platforms Anna and Bruce; therefore, only one unit is in actual operation at a time. Future Granite Point 4 Turbine Pumps 2,400 East Foreland Trea.ti.n$'Facility 1 Freewater Knockout 1 Treater 2 Glycol Heater's (Winter only) 206 206 1'78 590 Although t'here has been some exte~sion to.delivery dates for certain items of equipment, we still expect to commence water injections from both Pan American operated platforms in Granite Point during July, 19'70, at which time four.gas fueled turbine driven injection pumps will go into service. cc: See Attached Mailing List AGO 852079 MAILING LIST Mro R. Lo Warden (3) Shell Oil Company 430 - 7th Avenue Anchorage, Alaska 99501 Mr. F~ L,, ~ranz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mro W. G~ Christensen Mobil Oil Corporation P. O~ Box 1743 Anchorage, .Alaska 99501 Mr~ Ralph Go.Crews Suite 600 425 "Gl' Street Anchorage, Alaska 99501 Mr~ E.. F0 Griffin (31) Union Oil Company of California 507 West Northern Lights Boulevard Anchorage, Alaska 99503 Mr~ Fo Ko Krebill Pan American Petroleum Corporation P~ O~ Box 779 Anchorage, Alaska 99501 Mro H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. T~ J. Files Pan American Petrole'~n Corporation Security Life Building Denver, Colorado 80202 Mr~ Ralph Cox Atlantic Richfield Company P. ,0o Box 360 Anchorage, Alaska 99501 AGO 852080 STATE OF COLORADO ) ) SS COUNTY OF DENVER R. B. GILES being first duly sworn upon oath deposes and says that he is employed as an engineering supervisor by Pan American Petroleum Corporation, that the foregoing Application has been prepared under his supervision and direc- tion, that he is familiar with the information contained in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief~ Subscribed and sworn to before me this 18th day of December, 1969,. Notary Public My commission expires AGO 852081 SHELL OIL COMPANY 430 7TH AVENUE ANCHORAGE. ALASKA 99501 December 1, 1969 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, AK 99504 Dear Mro Marshall: Attached in accordance with your directive dated October 31, 1969, is an affidavit detailing Shell Oil Company's efforts toward gas utilization at Middle Ground Shoal field made in the period following our previous affidavit of July 22, 1969. We request administrative extension of Conservation Order No. 32 without 'hearing for another 120-day period to be effective starting January 2, 1970. GRG/btm Attachment Very truly yours, R. L. Warden Division Production Manager cc - Atlantic Richfield Company (w/att) Standard Oil Company of California (w/att) Pan American Petroleum Corporation, Denver (4) AGO 852082 MAILING LIST Letter to Cook Inlet Gas Producers dated October 31, 1969 Subject: Extension of Conservation Orders No. 32 and Noo 61 for an Additional 120-Day Period Robert L. Warden Alaska Division Production Manager Shell Oil Company 430 West Seventh Street Anchorage, Alaska 99501 Mr. Robert T. Anderson Union Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 Mr. Claude H. Brown Texaco Inc. P. O. Box 664 Anchorage, Alaska 99501 Mr. W. G. Christensen Mobil Oil Corporation F. O. Box 1734 Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr. Robert Hartig Assistant Attorney General 360 K Street, Suite 105 Anchorage, Alaska 99501 Mr. R. F. Cox Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr. Thomas E. Kelly, Commissioner Department of Natural Resources Pouch M Juneau, Alaska 99801 Mr. F K. Krebill Pan American Petroleum Corporation P. O. Box 779 Anchorage, Alaska 99501 Mr. Morris L. Lowman Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 Mr. Dale Wallington, Deputy Commissioner Department of Natural Resources Pouch M Juneau, Alaska 99801 Mr. E. J. Wentworth Superior Oil Company 3301Brundage Lane Bakersfield, California 93309 AG 0 85Z083 · DEPARTMENT OF NATU L DIVISION OF OIL AND GAS KEITH H. MILLER, GOVERNOR 3001 Porcupine Drive AN£~ORA~£ 99504 October 31, 1969 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Orders No. 32 and NOo 61 for an Additional !20-Day..P. eriod Decision A review by the Oil and Gas Conservation Committee of the materials submitted in accordance with stipulations contained in Conservation Orders No. 32 and No. 61, as detailed by our original directive of july 15, 1968, has been made. It is the Committee's decision that the operators are actively pursuing a program to beneficially utilize the gas which is being flared. D ir e c t ive Conservation Orders No. 32 and No. 61 are extended for an additional 120-day period from September 4, 1969 or until January 2, 1970, Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at 'least 30 days prior to the expiration of the 120-day extension period, or by December 3, 1969. Additional affidavits may be requested during this extensiom period. ~mas R. Mar Sh'Jl1' -jr. ' / Executive Secretary Alaska Oil and Gas Conservation Committee AGO 85208/+ PAN AME C PETROLEUM COI I IL ION SECURITY LIFE BUILDING DENVER, COLORADO 80202 August 4, 1969 File: AMR-1591-986. 511 FILE Re: Beneficial .R..e. 7..~.y.....s.e....Of Gas Produced, MGS and Granite 1Point Fields Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Mar shall' In accordance with your directive of May' 7, 1969, we submit ou;r af.fidavit detailing efforts toward further gas utilization, in'Middle Ground Shoal and Granite Point Fields. On behalf of the Chakachatna Group of co:mpanies, we hereby request administrative extension of Conservation Orders 32 and. 61 - for another 120 day period, starting September 4, 1969. -'" '-----' For the period since our affidavit of April 1, 1969, equipment con- versions to gas fuel and conservation measures have been: 1. Conversion of the second AC generator on Middle Ground Shoal Platform Baker to gas fuel has been completed. 2. Water injection into the lease line well and one additional well on Platform Baker has commenced in an attempt to.maintain and eventually increase reservoir pressure. This will conserve gas by minimizing produced gas-oil ratios. 3. With the start-up of water injections at MGS Baker, one gas fueled turbine to drive the injection .pump has been placed in service. Equipment now using casinghead gas as fuel is as follows: MGS- Bake r MCFD AC Generators Steam Generator Gas Lift Compressor Glycol Regenerator Turbine Pump 312 168 .234 5 336 1,055 AGO 852085 Thomas R. Marshall, Jr. So. MGS-Dillon 8 Waukesha Engines (Kobe) 1 Steam Generator _ MCFD 346 168 , 514 AMR-1591-986. 511 Future 1 Turbine Pump 2 AC Generators 336 34:8 ,, , 65~ Granite Point - Anna 1 Steam Generator 1 Turbine Compressor (See Note) 6 Waukesha Engines (Kobe) 2 AC Generators 168 336 .... 259 360 Granite Poi. nt _- Bruce. 1 Steam Generator 168 5 Waukesha Engines (Kobe) 216 2 AC Generators 360 744 ~/~[~ Note~ Operation of the turbine compre o t~rnated between Granite Point Platforms Anna and Bruce; therefore, only one unit is in actual operation at a time. Future Granite Point 4 Turbine Pumps 2,400 East Foreland Treating Facility 1 Freewater Knockout 1 Treater 2 Glycol Heaters (Winter only) 206 206 -- -- 412' The above tabulation also includes our anticipated future equipment conversion to gas fuel. We expect water injections to commence from Middle Ground Shoal Platform Dillon during August which will require use of the turbine driven, injection pump. We also plan to convert on the Dillon Platform the two AC generators to gas fuel during the 4th quarter, 1969. For the Granite Point platforms, all equipment has been converted to gas use. Water injections are planned to commence from both Pan American operated platforms during July, 1970, at which time 4 gas .fueled turbine driven injection pumps will go into service. cc: See Attached. Mailing List Yours very truly, AGO $SZO86 ' 1VLA IL IN G LIST Mr. R. L. Warden (3) Shell Oil Company 430 - 7th Avenue Anchorage, Alaska 99501 Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1743 Anchorage, Alaska 99501 Mr. E. F. Griffin (3) '[Inion Oil. ComPany of California 50'7 W. Northern Lights Blvd. Anchorage, Alaska 99503 Mr. H. W. Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. H. C. Yamison Atlantic Richfield Company P. O. Box: 360 Anchorage, Alaska 99501 Mr. F.. L. Franz Skelly Oil Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mr. Ralph G, Crews Suite 600 425 "G" Street Anchorage, Alaska 99501 Mr. iF. K. Krebill Pan American"Petroleum Corporation 'P. O. BoX' 779 Anchorage, Alaska 99501 A/ir. T. Y. Files Pan American l~etroleum Corporation Security Life Building Denver, Colorado 80202 AGO 852087, STATE OF COLORADO COUNTY OF DENVER ) ) ss ) R. B. GILES being first duly sworn upon oath deposes and says that he is employed.by Pan American Petroleum Cor.poration, that the foregoing Application has been prepared, under his supervision and direction, that he is familiar with the information contained in the Application and that the matters and the things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this fourth day of August, 1969. Notary Public ~,GO 852088 Mobil Oil Corporation HLB ~ OKG KLV ........ RFzL FILE Northwest Producing Area P. O. Box 1734 Anchorage, Alaska 99501 August 1, 1969 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99503 Dear Mr. Marshall: In response to your directive concerning "Extension of Conservation Orders No. 32 and No. 61 For An Additional 120-Day Period", Mobil Oil Corporation submits the following information regarding the utilization of casinghead gas from the Granite Point Platform. As we have previously mentioned we have installed the following equipment on the platform: One (1) 800 KW Turbine Powered Generator utilizing about 210 MCF/D. One (1) 1550 HP Compressor utilizing about 220 MCF/D. One (1) 350 HP Compressor utilizing about 60 MCF/D. One (1) temporary water injection pump driven by a 266HP Waukesha gas engine utilizing about 72 MCF/D, the operation of which has now been suspended. Plans to install a full scale waterflood system are in progress. Ins- tallation should begin in October of this year with start-up scheduled for February 1970. The system will utilize approximately 1000 MCF/D for deaerating equipment and two (2) 1450 HP gas turbine powered injection pumps. The Granite Point Shoresite has two (2) 500 HP gas engine driven shipping pumps which utilize about 200 MCF/D. In addition, the treat- ers at the shoresite utilize about 50 MCF/D when in operation. We are continuing in our efforts to utilize casinghead gas in every beneficial way possible and respectfully request extension of Conser- vation Orders No. 32 and No. 61 commencing May 7, 1969. JJB raze/kb AGO 852089 PETROLEUM PRODUCTS July 31, 1969 TEXACO INC. P. O. BOX 4-1579 ANCHORAGE, ALASKA 99503 Mr. T. R. Marshall, Jr. Executive Secretary 0il & Gas Conservation Committee Division of Oil & Gas State of Alaska 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Sir: In compliance with the directive issued under Conservation Orders No. 32 and No. 61 of May 7, 1969, we wish to advise you that there have been no changes in gas utiliza- tion on the Texaco-Superior Trading Bay Platform "A" from the status indicated previously. Our drilling to date this year has not resulted in increased gas production, and although remedial work is anticipated, we are unable at this time to forecast future results from this remedial work. Our current plans call for the addition of artificial lift and/or secondary recovery' equipment within the next year. This will probably increase our fuel gas requiremen'~s and thus increase our gas utilization. We continue in our belief that our present and future plans will result in the effective utilization of all produced gas. Yours very' truly', TEXAC0~. ~/ JDisSt~icB~rsbue~er intendent AKL-FAW: j om AG:O 852090 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as a result of crude oil producing operations in the Middle Ground Shoal Oil Field ) Conservation Order #32 ) Middle Ground Shoal ) Oil Field May 10, 1968 AFFIDAVIT OF St{ELL OIL COMPANY P~EGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) and says: Comes now R. L. Warden, being first duly sworn, and deposes 1o That he is Division Production Manager of :Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated March 20, 1969, the following steps with regard to conservation and utilization of casinghead gas have been taken: (a) Two 1100 HP gas fueled turbines to drive waterflood injection pumps and an oxygen stripping tower using gas to remove oxygen from injection water have been placed in service on Platform C. (b) Water injection has been started in two additional wells (total five) on Platform A and three wells on Platform C~ in an attempt to maintain reservoir pressures above saturation pressure for the E, F and G pools. This has the conservation effect of minimizing produced gas-oil ratios from this pool. , JUL AGO 8520911 : (c) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A Platform C Steam Generators (converted from diesel fuel) 700 HP AC Enginators (converted from diesel fuel) 440 HP Gas Lift Compressor 1100 HP Gas Lift Compressors 1100 HP Turbine Driven Water Injection Pumps Oxygen Stripping Tower 3 Steam Generators (converted from diesel fuel) 2 950 HP AC Enginators (converted from diesel fuel) 1 660 HP Gas Lift Compressor 1 1100 HP Gas Lift Compressor 2 1100 HP Turbine Driven Water Injection Pumps 1 Oxygen Stripping Tower FURTHER AFFIANT sayeth not. SUBSCRIBED AND SWORN TO before me this 22nd day of July, 1969o / Notary Public in and for Alaska My Commission Expires, August 30, '1 JuL25 DIVe,iON OFOILANDG.~ SHELL OIL COMPANY 4.30 7TH AVENUE ANCHORAGE. ALASKA 99501 July 24, 1969 OKG ~-- HWK ~ ~ ~. ~- Mr. Thomas R. Marshall, Jr. Executive SeCretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage: Alaska 99504 Dear M~'. Marshall: Attached. in accordance with your directive dated May 7, 1969~ is an affidavit detailing Shell Oil Company's efforts toward. gas utilization at Middle Ground Shoal field made'in the period. following our previous affidavit of March 20, 1969o We request administrative extension of Conservation Order No. 32 without hearing for another 120 day period to be effective starting September 4, 1969. RDA: rmg Very truly yours~ R' L' Warden Division Production Manager cc: Atlantic Richfield Company (w/attach) Standard Oil Company of California (w/attach) Pan American Petroleum Corporation, Denver (4) DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS May 7, 1969 KEITH H. MILLER, Governor 3001 PORCUPINE DRIVE-ANCHORAGE 99504 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Orders No. 32 and No. 61 for an Additional 120-Day .Period Decision A review by the Oil and Gas Conservation Committee of the materials submitted in accordance with stipulations contained in Conservation Orders No. 32 and No. 61, as detailed by our original directive of July 15, 1968, has been made. It is the Committee's decision that ~th~e"o~perators are actively pursuing a program to beneficially utlilize the'gas which is being flared. Directi Con an addi 1969. 61 Will" be eXtended for this date:, o.r. until September 4, Al' produ:Cers showing: further efforts id gas will'be due at least 30 days prioF~ i.ration the 120-daY extension period or by August 5 ,. '19,69.,, Additional affidavits may be requested during this extensi.o6'period.. "~"~' ~ ~ Thomas R. ~arshall, Jr. ~~~~~.?,~/ Executive Secretary Alaska Oil and Gas Conservation Committee AGO 85,Z09~ .F'©RM SA - I B MEMORANDUM TO: F Thoaes [. r, elly CoiJssioner State of Alaska DE'P/~:tT~ OF flATU~.. RESOU~ES DIVISIi)X OF OIL /tND GAS FROM: ttomer L. B~rr~11 t)tr~ctor DATE : ~y 2, lg6g SUBJECT: ~ £1art~ ami Sm~§ C~lttto~s ~k Inlet The.: sao9 conditions repor~ by Senator Stevens and mentioned in. your letter of ~Hl' 16, 1.~69:, ~ haw been .d~e ~o atmospheric conditions ~grava.'t~ by s~h ~ ~' flar~ tm ~e C~k Inlet. tratls :of :I~ ~ ~e fla.~ ~ ti~ a~ ~nd and h~tdity condi, tt~s ld enily .rose ~ in ~e victntty Tyo~., Al~gb nt fl~ ~ .c1~t h ~e vt11.ege ~ Ty~nk, o~er ~s nay also ~~~ '~ ~ ~'t'tten, Past :~es:~. ~at Pan situation, as the. ~~t 1.20-day extenst~ to ~erv,:a'tlon Order lies, 312' and 61 ~(re ~' 7., ~~ m:t~.~ ~ utilize .~ ~ o~r e~n'~ i~ J'~ttfy a 's~-c~.se' ~rt~ in. ~ne,. tn~ of a~r 12~y ex~nt.on .of :h. C~e~att~ 2. I~.ny .of the .operators* afft.:'davt'~ .of p~ress in usage (requ'tred t. nt fteld,. Pan ~Ieri~'s nonthly reports ,~ ~ per cent ~f the in their affidavit,. , ~ In..~e. T~ B~ Ft~ld Onion's n:n~ly ~.r ~nt nre ~sa) than r~ted t:n ~tr .afftdavt't, ~.tle h :~r~ur River f'teld ~ ~~ty r~a of u~ a.~ 24 per. ~.~ of ~at clatl tn '~, affthv, i ts. tn the trmnt,~ 'Po'tnt Fteld, '~t:l's ~Ihly n~rb sh~ 1'~ .per ~c'laiW t0 ~et.r .mfft~vIt for ~e sw ~rtod. T~se dts. AGO Thomas £. Ke11,y - 2- ~tay 2, 1969 Present Cook Inlet gas p~uctton Js approxtmatel~ 63 per cent of that predicted. ~towever., present usage is 33 :per cent of that pre~ t cte d. After reaching the surface. 10.6 per cent of present ,production is being used and 89.4 ,per cent is being flared, in excess of 7t million cubic feet of gas, containing an estimated 6.800 barrels of LPG :products, ts being flu,red daily. Host flares e~tt ~avy. dense, black smoke, burnt~..and probably waste of condensable ~drocarbons. cast.bead gas ts ~a~:~. T~ operato~ cla,fm they a~ unable to cl,ean ~e .,~tng~ :gas ~'ffJc ~ use ~ as fuel, yet $~el, 1 e G~nd S':,b~1 Field .an~: u:ses Itr h~ b~e~ reportl~ to us that varto~ parties have stu~)jed: t~e ~sstbt11~ of ~rcha.s~ cast:eg~a~ 9as, but t~t ~e ope~tors ~re ~t ~ttve ~ a sale or ~Id not ~otiate. ~e n~ ~re ~ the ~go't:iati,~o:~s or offers and the affidavits flle~ ~ ~t help,. The excuse given for failure to se~l is that there Is too much a~atlable far a too s~rt. t~at aa sale 'Uterefare feasible,.. It up.ars as tbeugb the shaft petted results ft~ ~e operators' anttctpa~d gas s~bor~ges (tn f~ two to eight ~a~ ~ so) afar ~ich ~ey will 'me~ the ~,~selves - ~e~fo~ tt is ~ 'their ,economic a~van~ge to ~ a sale contract (at little or no p~ftt ~ t))~), wht~ ~uld ~sUlt ~o gas being available to th~ ~en ~ it, even: tbou,gb g~ is ~as~d the aeanti~,', If of of 1 vere cur~t, le~. a ~;l:ler vo,lu~. ,of g~ ~ available: for a l:oager pe~,~Od of tt~, thus: m~t~g a sa)e contract feasible. The large, number of devetopmeat ~:'1 ls d,rt tle~ a~nd tt~ p,)~ssure maintenance ander~ay result t:~ ~:ch: ..mo~e t: n,fo~ ti on be$~ aVat titan a ~' a~:; t~~ a ~'~ accurate evaluation of ~e flaring p'~bl,~ ts ~sst~bl,e. A ft,m~ stand ,On '~artng in the Coa~ In,let may set a desirable pre~edeat' for (~,~is'ions o,~. dtsp~ition of p~ace,~ gas ~ the ,North Slope., 'We believe the faretotng are ,~i,fficte~t to jus ti fy' a :hearing :~qui ring the ~ show, cause ~h~," p,ro~u,ctton should: ~ot be cu::r~tled ,o,r shut :,on :g~unds of was'~,. I: ap:~,ars that we have ~n bo,'~ mi':.s'lnfo:mmd ~:'~ ..... ~ uni,~fo~, an~ need a~Iti,on,al info,mutton. BecauSe of the bbvious ,adversa~ :aa, tu~ aft~ ~aring~ aad: the ~r~ln'ty that aa aUve~e erder' '~e :~a~d 'that a 'fU ll-bl~n Act , wtU~ a. heart~ °fft~r ap~t~ted by , ~' AGO 85209b Thomas E. Kelly - 3 - Hay 2, 1969 The .only other question to be decided, if you concur in the advisability of such a hearing, is when. Curtailment or shutting-in of production prior to the September lease sale would substantially reduce tm:omo to the State wit~ut any quaran't~e lease .bonuses ~ould make it up, and ~)tght further .result in a reduction in a~ounts bid at the .~orth Slope lease sa]e. For these reasons, Gtlbreth favors delaying the hearing till after the sale', Mars.hall and I favor proceeding with the hearing, pro,~t, ded that if waste is fouad, curtailment of production be gradual - such as 25 per cent for six months, then SO per cent for the next 6 ~onths if remedial action ts not taken, and so on. In addition ~e have Just. been contacted by a Mr. Richard Mikkelsen of t~ Greater Anchorage Area 0orough i(ealth 0epa'r~nt, representing the Trt-Borough Air Poll.ution Control Ois,trtct (Ratanusk.a-$usttna., :Kenai Peninsa'la and RltchOrarge ~4)ro~lghs). ~lr. ~ltkkelse~ expres,se~ his concer~ over Ge flarfng aad in~ttcated t~e, was seeking a re,feral grant a:)~ intended to, adopt rules a~d .regu,:):a:tioas '~ control or prohibit Such. air )oll.:ution. I thtak tt better..~e deal ~tth this probl~ ~n the~ air po~llutt:m~ people. Please a~vi. se :of your decision. AGO 85209? PETROLEUM PRODUCTS March 28, 1969 TEXACO INC. P. O. BOX 664 ANCHORAGE, ALASKA 99501 Mr. T. R. Marshall, Jr. Executive Secretary State of Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage0 Alaska 99501 OKG HW~(~ REL FII:E ~ Dear Mr. Marshall: In compliance with the directive issued under Conservation Orders Nq.~. 32"~l:and No. 61 of January 6, 1969, we wish to advise you tha~'~=;'{~ere have been no changes in the gas utilization on the Texaco-Superior Trading Bay' Platform "A" from the status indicated previously. It is anticipated.this status will not clnange until additional develOpment drilling Occurs. JGC: spc Very' truly yours, TE}@~CO Inc. S. ~Barber District Superintendent DIVISION OF OiL AND GA5 AGO 852 09 8 FORM SA- I B ,,~ MEMORANDUM TO: J-- FROM: State of Alaska DXVZS~ OF OXL ~ GAS DATE SUBJECT: 32 ~ua 61 cai llsrae, houes Vepo~' I I AGO 852099 · , , , FORM SA- I B MEMORANDUM TO: F Thomas R. Marshall Chief Petroleum Geologist THRU: Homer L. Burrell, Director ~'~ Division of Oil and Gas FROM: Dale Wallington 4~ Deputy Commissione~"~ State of Alaska DEPARTMENT OF NATURAL RESOURCES DATE : January 16, 1969 SUBJECT: Extension of Conservation Orders No. 32 and 61 We concur for another 120 day extension to the above Orders. However, it should be noted that once the vapor extraction plant is in operation, all flared gas will be charged for at an equitable rate based on price paid by plant operators. The Commissioner thinks it would be appropriate to notify the operators of this situation. The operators would then have time to work out an agreement with Marathon and Union for disposal of the flare gas from their operations. Since the make-up of the Oil and Gas Commission is now composed of personnel from the Anchorage area, I feel that it would be a waste of the State's money for me to attend the hearing on January 23, 1969. Ot'l OF OtL AND GAS AGO 852100 FORM SA- I B MEMORANDUM TO: r- Harry W. Kugler · Member Oil & Gas Conservation Committee State of Alaska DIVISION OF MINES AND GEOLOGY DATE : January 8~ 1969 SUBJECT: Continuation of Conservation Orders 32 & 61 OM: A. Williams· Chairman ~ FR OiIJames& Gas Conservation Commi~te~e I have reviewed the correspondence attached to your memo of January 6. It is apparent to me that the companies have continued bona fide attempts to make the best practical beneficial use of the gas they are necessarily producing with the crude o I recommend that Conservation Orders 32 & 61 be continued by administrative action for another 120-day period. JAW/mh RECEIVED JAN ] ~ 19¢;q DIVISION OF OIL AND GAS ANCHOR~E FORM SA- I B ! MEMORANDUM TO: I-- FROM: State of Alaska DATE : SUBJECT: lie,. 61 AGO 852102 LIST Letter to Cook Inlet Gas Producers dated January 6, 1969 Subject: Extension of Conservation Orders Uo. 3.2 and ~o. 61 for an Add t ti onal 120-Day Peri od )ir. R. D,. Allen sbel I Ot 1 Co~pany 430 Se~ntb Avenue Anchorage, Alaska 99501 Mr. Dale Waltington, Deputy Co~mlssioner ~)eparb~ent of ~atural Resources Pouch M Juneau.,. Alaska 99801 ~4r.. ~beet T. Ande~on Union 0t1 C~pa~y 'of California 280.5. Oenal t Street Anchorage, Al~.ka 99501 qr. E. J. ~entwor~h Superior Oi 3301 Brundage Lane ,~akersfield, Cal. t fornia 93302 ~Ir. Claade ~t. Brown 'Texaco Inc... P. O. Box 664 Anchorage, Alaska 99501 ~Ir. J.a~es A. ~il'liams, Otrector Division of .~tnes and 5-300 Col le~, Alaska ~r. g. G. C~ristensen ~btl 0il Corporatto.n Anchorage, .Al'as~ 99501 ~... To~ Files, .Dirt:sion Attorney Pa~ American Petrale~: Corporation $~uri ty Ltfe .~u.t Idl:ng 'D~er, Colorado ~gO2 ~r. gobert ~(artig .Assts~n't A ~0 ~ Street, Sui~ lOS Anchorage., Alaska 99501 Atlantic Richfield ¢o~pany P.. O. ~ex 360 ~.. T~$. [.. ~11¥, C~tssto.ner Depa'rt~t .of ~tai~ueal Resold:roes Pouch. J'u~eau, Alaska g980~ AGO 8.52.103 DI¥ISIOI~ OF OIL A~D GAS Ja~u:ary 6, 1969 TO: COOK INLET GAS PRODUCERS Subject: Extension of :Conservation: Orders :No.. 32 and N:o.. 61 for Decision A revfe~ by' the Oil and Gas Co~ervatior) Camit~e of the materials submitted in accordance with stipulations c.o~tat~)ed in Conservatio~ Orders ~to. 32 .a~ NO. 61, as detailed by' our original directive of July 15, 1968, has been it is the C(~m~dttee's decision 'th. at the operators are actively pursuing a pro,iran, to .bm~eficially u. titize the gas which is being fla~e~. Co.:servetio)) Orders No. 32 and. No. 61 will be extended for ~ ' 1969. an additional 120-day period from this date or u~)til )qay 7, .Affidavits from..Cook I~let gas producers sho~i~ further efforts made t.o utilize casinghead §as will be due at least 30 days prior to the ex.piratio~ of the '120-day ex. tension period or by April 7, 1969. E.xecuti ye Secretary Alaska Oill a~:),d Gas Conservation Co~m~i'tt. ee AGO 852 lOZ* Union Oil Companyt~' California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 union December 27, 1968 Mr. Robert Larson Division of Mines & Minerals 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Larson: This is to confirm the gas usage volumes as per our telephone conversation of December 26, 1968. Gas usage for the various items of equipment is estimated as follows: Equipmemt C.0nsump t i0n/..Un i t 1100 HP Solar Turbine 100 HP Boilers 50 HP Boilers Deoxygenator Towers Compressors Heater Treaters Line Heaters Generator Sets @ Onshore Site Flow Splitters Steam Generators 250-350 MCF/D 100-120 MCF/D 50-60 MCF/D 150 MCF/D 2-1/2 SCF/HP hr 5@ 130 MCF/D 3@ 530-535 MCF/D 395 MCF/D 90 MCF/D 655-660 MCF/D 100 MCF/D Should you have any questions, please adviV. / R. C. Har tmann District Production Superintendent RCH/dp D E C, 0 I.cl ''q o. DIVISION OF OIL AND ~A$ ANCHORAGE FORM 401-ANC-W (8/67) A 60 8 5,2.10 5 PETROLEUM PRODUCTS December 23, 1968 TEXACO INC. P. O. BOX 664 ANCHORAGE, ALASKA 99501 CONSERVATION ORDER NO. 61 Mr. T. R. Marshall, Jr. Executive Secretary State of Alaska 0il & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: The attached graph entitled "Casinghead Gas Utilization on the Texaco-Superior Trading Bay State ADL 17597 Lease" is sub- mitted in response to your letter on the above subject dated December 11, 1968. The graph presents the requested information. Our present mechanical arrans'ement is such that casinghead gas is our primary fuel source. We use diesel oil only as a standby source of fuel. In the summer of 1970 we anticipate the addition of a 4,000 h.p. gas lift compressor, a heater treater and a free water knockout which will boost our fuel requirement from the present 800 Mcf per day to 26.00 Mcf per day. The graphical presentation of gas utilization does not incorporate the effects of secondary recovery on the lease. As is evident, after 1981 with conventional operations there will ~be a deficit of fuel gas. We fully intend to use some type of second- ary recovery on the lease to maximize recovery, however, at this time we are unable to reflect this on the gas utilization curve. We are giving serious consideration to gas injection for pressur~ maintenance in addition to water flooding as a form of secondary recovery. If we elect to use gas injection, there will'be a gas deficit throughout the life of the project., Very truly yours, FAW: jm Attachment 2 6 1968 DIVISION OF OIL AND G~ ~C~GE TEXACO Inc. 8. Barber Assistant Superintendent AGO 852106 89-6I ~O00I ~ 0 ~ r ~00£ o~ ~)00~ 06 oot Olt -- °~00~ OII FORM 4?0 PAN AMERIC PETROLEUM CORPOP. ATION P. O. Box 779 Anchorage, Alaska 99501 December i8, I968 File: FKK- 130z~-986.511 Re: Gas Utilization, Middle Ground Shoal and Granite Point Fields Mr. Thomas R. Marshall, Jr. Division of Oil and Gas Alaska Department of Natural Resources 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached is a tabulation of fuel gas utilization by individual units in our Cook Inlet operations. Please attach this tabulation to the letter of November 27, 1968, File: AMR-2851-986.511, from Mr. R. B. Giles of our Denver Division office. As indicated in the attachment, this information was sub- mitted to Mr. Bob Larson of your office by telephone on December I9, i968. Yours very truly, F. Bi. Krebill Area Superintendent Attachment RECEIVED DEC 2 0 196~ DIVISION OF OIL AND GAS ,ANCHORAOE AGO 8, 52. ~LO & COOK INLET - GAS UTILIZATION Following is a tabulation of the gas usage per item of equipment, based on December, 1968 projected operations. This information is being added to R. Giles' letter of November 27, 1968, File: AMR-2851-986.511, per his telecon with J. C. Schillereff on December 17, 1968. This data was given to Mr. Bob Larson of the Alaska Oil and Gas Conservation Committee, Oil and Gas Division, by telephone on December 19, 1968, and a copy is to be mailed to Mr. Thomas R. Marshall, Jr. Middle Ground Shoal Platform Baker Unit Horsepower Avg. CFPH Avg. MCF/Month 2 AC Generators (1) 1 Steam Generator 1 Gas Lift Compressor 1 Glycol Regenerator 650/ea. 6,500/ea. 4,800 175 7,000 5,075 975 9,750 7,200 2OO 8OO 6OO South Middle Ground Shoal Platform Dillon Unit Horsepower Avg. CFPH 8 Waukesha Engines (Kobe) 1 Steam Generator 180/ea. 175 Total 1 7,675 MCF 1,800/ea. 7,000 Avg. MCF/Month 10,000 5, O75 Granite Point Platform Anna Unit Horsepower 2 Steam Generators (1) 1 Turbine Compressor (2) 6 Waukesha Engines (Kobe) 2 AC Generators 1 75/ea. 1,100 180/ea. 750/ea. Total Avg. CFPH 7,000/ea. 14,000 1,800/ea. 7,500/ea. Total 15,075 MCF Avg. MCF/Month 5,075 5,000 7,775 10, 8O0 28,650 MCF AGO 852109 Cook Inlet- Gas Utilization- Page 2 Granite Point Platform Bruce Unit Horsepower 1 Turbine Compressor 2 Steam Generators {1) 5 Waukesha Engines (Kobe) 2 AC Generators Avg. CEPH Avg. MCF/Month 1,100 14,000 5,000 1 75/ea. 7,000/ea. 5,075 1 80/ea. 1,800/ea. 6,475 750/ea. 7,500/ea. 10,800 East Foreland Treating Facility Unit 2 Freewater Knockouts 2 Treaters 2 Glycol Heaters Firetube Rating- Btu/Hour 12,000,000/ea. 12, 000,000/ea. 2,500,000/ea. Total 27,350 MCE Avg. CFPH Avg. MCF/Month 8,600/ea. 12,300 8,600/ea. 1 2,300 3,750/ea. 5,400 Total 30,000 MCF (1) Only one of these units are in operation at a time with the other unit on standby. (2) Operation of these compressors is alternated between Granite Point Platforms A and B, thereby only one unit is in operation at a time. ~GO ,8521.,1.0 Union Oil Co. - Operator Beneficial Use o¢ Produced Gas TRADING BAY UNIT Grayling Platform me B. Equipment Now Using Gas 2 Glycol. boilers 1 Solar turbine driven generator Additions to be Made That Will Use Gas 1 Steam generator 2 Solar turbine driven water flood pumps 1 Solar turbine driven crude oil pump- ¥ $'~ 1, Solar turbine driven gas compressor ~"~ 4 Solar turbine driven gas lift compressors Dolly Varden Platform A. ~9_u~ipment Now UsinK. G__a_s B, 1 Solar turbine driven generator 1 Gas lift compressor engine - 3000 1 Steam boiler 2 Glycol heaters Additions to be Made That Will, Use Gas 2 Solar turbines for water flood 1 Deoxygenator tower Bi Salmon Platform .E_.~_i_p_m_ent Now Using Gas 700 t.tP gas lift compressor engine Additions to be Made That Will Use Gas mYmioN o~ o~t A~o oas 1, 5000 HP turbine driven water flood pump /~f'/~ 1 Steam generator ,S~ 1 Hot water boiler 1 Deoxygenerator tower .,~f~ /,.~:~' 1 3000 HP gas lift compressor .... ,,:;~'~"~. ,~,,,~<,,:,,.~, ~,~:~ '. IGO .852,:ll I . TRADING BAY UNIT (cont. Ae Ae Be WEST FORELAND ONSHORE SITE Equipment Now Using Gas 8 Heater treaters - 5 Line heaters 3 5 Electrical generator units 2 Glycol boilers ~'S 2 LACT building heaters 2 Heaters for pump motors 3 CIPL Solar turbines !:~e~,,: Additions to be Made That Will Use Gas Liquid extraction pi, ant TRADING BAY PLATFORM .E_q_u_i~pment Now Using Gas 2 Glycol boilers .... ,.~ ~ 1 Cat AC generator /~ m ' Additions to be Made That Will Use Gas 1 Steam generator ~:~ 1 Gas lift compressor engine 1 Deoxygenator tower Union Oil Company ( ~alifornia 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 December 6, 1968 union R. W. Yarbrough District Operations Manager Alaska .State Division of Mines & Minerals Department of Natural Resources 3001 Porcupine Road Anchorage, Alaska 99504 Attention Mr. Thomas R. Marshall, Ir. CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the McArthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Order 61. Very truly 'yours, k) Attach. RW~f:nnb tStON Of Ott AND GAS DIV AtqcHOt~AG~ AGO 852.[[3 Personally appeared bcfo:'e me the abovg..,,i~-~El~d,,,.,,,~,.,_~¥;.~l. C_.~_~h_r~ s t~___e_n~.n ................ or proved to m~ tc~~ ~. the stone person Who e~:ocutedf '-~ foregoing instrument,~ cknowledged to me th=t h~ executed the s~e as his :z~:~ act a::d deed~ WITNKSS my signature~ o£flcial designation~ and sealo ~o.~b ~- ~.:~-'~ .~.-.- a~ ,.~ng Officer) ~. (~Rzoo S~L H~E] ' ~]',:~5 a r'j,r Pub 1 ic (O~ficial designation) 2. at Anchorage, Alaska ~ 9th day of December ~.19 68 My comn~ssion exp~"es MaT__~,,~ ...... RECEIVE ) DE C .q DIVISION OF' ~IL AND GAS ANCHORAGE AGO 85211~ Mobil Oil Corporation December 6, 1968 700 "G" STREET ANCHORAGE, ALASKA 99501 RECENE Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska DIVISION OF OIL AND GAS ANCt'tORA~E Gentlemen: In response to your directive extending Conservation Order!">'g'i/dated September 9, 1968, Mobil Oil Corporation as operator at the Granite Point Platform respectfully submits the following: On the Mobil Oil operated Granite Point Platform, we have installed the following equipment: One 800 KW' gas turbine powered generator utilizing about 300 MCF/D fuel. One 1550 HP and one 350 HP compressor utilizing about 300 MCF/D and 60 MCF/D respectively. All this equipment is presently in operation. At present, pursuant to injectivity tests, we are preparing a recommendation to the management of Mobil Oil Corporation to purchase and install a full scale water flood system which will utilize the following gas fueled equip- ment: MCF/D Gas deaeration equipment 120 2-1450 HP gas turbine powered injection pumps 530 (each) This 'will be an additional 1180 MCF/D of gas used as fuel. The proposed installation date of this equipment is October, 1969. At the Granite Point Shoresite, the two 500 }tP gas engine driven shipping pumps have been installed and are in operation ~T~ey utilize about 200 MCF/D The foregoing information updates our previous letter of August 7, 1968 and is in line with our testimony presented in hearings before the Conservation Committee on February 7, 1968 and May 8, 1968. We are continuing in our efforts to utilize casing head to every beneficial use possible and respectfully request your administrative approval to extend Conservation Order #61 for an additional 120 day period beginning January 6, 1969. CAChampion:cg Very tr~l~ W. G. Christensen Area Superintendent A GO 8 52.LL 5 PA A nlCA Pr nog, v COI POILATION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 November 27, 1968 File: AMR-2851-986oSll Re: Showing of Efforts Made to Utilize Casinghead Gas, Middle Ground Shoal and Granite Point Fields RECEIVEi) BE04 1968 DIVISION OF OIL AND OAS ANCHORAGE Mr0 Thomas Ro Marshall, Jr, (8) Executive Secretary Alaska Oil and Gas Conservation' Committee Oil and Gas Division 3001 Porcupine Drive Anchorage, Alaska ggs0~ Dear Mr ~ Marshall: Conservation Orders N°~ 82, Middle Ground Shoal Field, and Noo 61, Granite Point, McArthur River and Trading Bay Fields, as extended by your directive of September 9, 1968, will remain in effect until January 6, 1969, and may he exten- ded in successive 120 day periods 'upon a showing by each Operator to the saris- faction of the Committee that the Oper,ator is actively pursuing a program to beneficially utilize the gas which is being flared° By your directive of September 9th, Operators have been asked to submit an affidavit before December 9, 1968~ detailing their recent efforts in order to lay claim for an extension of these Orders for an additional 120-day period° Pan American, an Operator in the Middle GrOund Shoal and Granite Point Fields, on behalf of its partners in the Chakachatna Group, Phillips Petroleum Company, Skelly 0il Company and. Sinclair 0il & ,Gas Company, herewith submits~ the requested affidavit and makes Application for an extension of Conservation Orders NOo 32 and 61, adminis~ra:ively without a hearing,~ for another 120-day Period° In 'support, Pan American states that it continues to pursue a program which will provide as many additional beneficial uses of the gas, which has been beneficially used to produce the most valuable product, the crude oil itself, as is feasible° By platforms in: Middle ground Shoal and in Granite Point Fields~ we list the equipment ~that has been converted to gas and those items which ulti- mately will be converted to produced gas for fuel: :: Completed: . Middle, Ground shOal Platform Baker AC Generators 2 DC Generators 2 Steam Generator 1 Gas Lift Compressor 1 Glycol Regenerator 1 AGO 852.116 ~ Thomas Re Marshall, November 27~ 1968 Page 2 Waukesha Engines (Kobe) Steam Generator Granite Point Platform Anna RECEnVED DECz_ I968 DIVISION OF OIL AND GAS ANCHORAGE S~eam Generators Turbine Waukesha Engines (Kobe) AC Generators 2 1 Granite Point Platform Bruce ~':T "-: ............... T'"' ,,~,,,,,~,,,~, ~ ~ Turbine Steam'Generators Waukesha Engines (Kobe) AC Generators 1 2 5 2 ultimate AC Generators Gas Lift compressor Wauk.e.sha Engines (Kob~, Steam Generators ~as Turbines Glycol ~egenerator Waterflood Equipmen~ (Gas. Turbines 8 6 i 1 19 19 6 8 2 2 1 1,' Our East Foreland shore facilities are now making use of pz~duced gas for ulyCol heat tracing of the facility piping systems and for all other onshore re,. irements as n.eeded~. Gas engines will .power .wa~erflood pumps on both MG$ plat- fo~ms and our ~rani=e Po~ pla=forms when install.ed in =he fu=u~e, . As ~ime goes on,. ~ expeC~ we will have occasion ~o make certain adJus=ments to earlier indica~ed plans conceal.ns our platform opera=ions, Even so, we:believe OUr Sas ra~e fo~e. cas=s.~ha~ were presented as evidence a~. ~he p~lic hearings on =hese four platfo~s ea~lie,r =his Yea~:....remain ~aSonably valido Certainly more. gas. ~han had .been P~dic~ed will be produced ~d.qUi~e likely a' lesse~ volume of gas ul~ima~ely will ,~, p~od.uced .f~om .the ~w° fields, , . Ac=ion ~owards ini~ia=tng our secondary ~COVe~y.plans a~ound ~he playlets in ~hese ~wo fields c°n~inues ~o move ahead in a:'~'saYisfac~ory manner, The joint (Ch~acha~na-SAS ~UP) lease li~e wa~er in~ec~!o~ ~.well,".M6S 17595 'Well ts~ in ~he final s=ageS.°f c~91e~i'on P~pa~a~o~y.~o...s.~ar~tng injections, water-. flood plans a~ Pla~fo~.Dillon.?.'a~e in =he. final?stages'and considerable equYpmen~ already ts on order, :..Th® G~!~e ~otn~ "B" 187~2::[No, .=..~. ~11 continues ~o receive wa~e~.~ injec~ions 2o~aling 226~000.-baP~ls so far~.:::..~The' injection ra~e has been.~ abou= 1800' BWPD a~ ~50 psi, a' liY~le Be.2~e~.~han...'when inJec~ions ftrs~ commenced bu= S=ill lo~r ~han we dest~ F~loff.. ~es~s. 2o evaluate cu~en~ injec~tom, resu.l=s will ~ conducted soon~ Thereafter, .we P. lan.../to ~aise. inJec~ion presSUre . ~o ~he 5500-6000 psi ~range in ~ effor2 ~ improve..~..;~he:'!nJection ra~e, Cooperative inJ.ec~ion a.greemen=s ..among =he ope~a~ors ~ve been ...d~a~'up in ~eadiness ~o con- sider pu~ting full scale'~wa~erfloOds in~o effect in"'bo~h' fields~ Mr~ Thomas R0 Marshall, J~0 November 27, 1968 Page 3 We still hope that a market can be found for the remaining produced gas which is not being used for fuel, We remain alert for any possible change in the market outlook° Unless the situat£on changes markedly, however, we continue to foresee no immediate solution to this problem° The best resolution at this time that would depress future gas production rates seems to be the anticipated expansion of water injection operations at Middle Ground Shoal in early 1969 and successful completion of injectivity tests at Granite Point so that it will be feasible to conduct full scale waterfloods in both Middle Ground Shoal and Granite Point .Fields° We feel real pmog~ess is being made towards full scale waterflooding in both fieidso We respectfully request your administrative approval to extend the captioned Conservation Orders for another 120-day period beyond January 6~ 1969o Yours very t_ruly, cc~ Mro Homer Burrell Director, Oil and Gas Division Department of Natural Resources 3001 Porcupine Drive An.¢horage, Alaska 9950~ See Attached Mailing List RECE VE DEC 196 DIVISION OF OiL AND GAS ANCHORAGE STATE OF COLORADO ) ~ SS COUNTY OF DENVER ) R0 Bo GILES being first duly swo~n upon oath deposes and says that he is En~ineerin~ Group Supervisor, employed b~ Pan American Petrole~m'Oo~p'Ora~on', that the fo~e~oin~ Applica,~ton has been p~epa~ed unde~ his supe~vls~on,and '~ direction, ~ha~ he is f~ilia~ wi~h ~he ~nfo~ation contained in'~he "~PPlica~ion and tha~. ~he ma~ters and the ~hin~s therein set forth a~e true and c°~mect 'to the bes~ oF his knowledge ~d belief. ' ' Suhscrlhed " , and swo~ to before me ~his 27~h day of November, 19~8 ' Z,, -Notary P~bi, ic '" ......... AGO 852118 My Commission expires July 26, 1970, MAILING LIST M~,o Ac Ac W~nn (3) Shell Oil Company ~30 7~h Avenue Anchorage~ Alaska 99501 M~o Wo Go Chris~ensen Mobil Oil Coz~po~ation Po Oo Box 1743 Anchorage, Alaska 99501 M~o Ro Wo Ya~b~ough (3) Union. Oil Company of Califor~sia 2805 Denali S~e~ Anchorage, Alaska 99503 ,, M~o Co L~ Cox ,Sinclai~ Oil & Gas C~pany 501 Lincoln Towe~ Bu~ldinS Denve~ Colorado 8020~ M~o Ho Wo Pa=~e~son Phillips Pe~moleum Company ~300 Security Life Build~ Denve~ M~o Fo Lo F~anz Skelly Oil Comply 1088 Lincoln Towem Butldin~ Denve~ Colorado 80203 M~o Wo Po Whi~mo~e Skelly Oil Company ,Po Oo Box 1650 Tulsa~ Oklahoma 7~02 ~o Ralph ~ ,Crews Suite 600, ~25 "~" Anchorage, Alaska 9950~ ~o Fo Ko ~bill Pan ame~fc,~ Pe:~oleum Co~pora~ion Po O~ Box 779 Anchoma~e~ Alaska 9950~ M~o To Jo Files Pan American Petroleum Coz~pora~ion Security Life Building Denver, Colorado 80202 DIVISION OF O1[ AND AGO 852'{. 19' SHELL OIL COMPANY 430 7TH AVENUE ANCHORAGE. ALASKA 99501 December 3, 1968 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached in accordance with your directive dated September 9, 1968, is an affidavit detailing Shell Oil Company's efforts toward gas utilization at Middle Ground Shoal field made in the period following our previous affidavit of July 31, 1968. We request adminis- trative extension of G.~,~£D~_,~F;.~,e~,~,~,~,~,~,~, without hearing for another 120 day period to be effective starting January 6, 1969. Very truly yours, Division Production Manager cc w/attachment: Atlantic Richfield Company Standard Oil Company of California Pan American Petroleum Corporation, Denver (4) D~¥]SIOIq OF Ol~ A~D AGO 8:.5212:0 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as) a result of crude oil producing operations) in the Middle Ground Shoal Oil Field ) AFFIDAVIT OF SHELL OIL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) and says: Conservation Order #32 Middle Ground Shoal Oil Field. May 10, 1968 IslO~ 0~: Oil. AND OAS Comes now A. A. Winn, being first duly sworn, and deposes 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California, and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following our previous affidavit dated July 3i, 1968, the following steps with regard to utilization of casing- head gas have been taken: (a) One additional gas fueled 1100 HP gas compressor was placed in service on Platform C. (b) Two 1100 HP gas fueled turbines to drive waterflood injection pumps and an oxygen stripping tower using gas to remove oxygen from injection water are being installed on Platform A. Start-up of injection on Platform A is expected during the first quarter of 1969. In addition to injection equipment using gas as fuel, the waterflood will have the added conservation feature of minimizing gas-oil ratios in E, F and G pool production. ,~GO 8521,21 DE ,tO.,, zt 19 qa DI¥1$1ON OF O1[ AI',I~ 6A$ ANCHOP~A~E 1968. "{ '{' - 2 - (c) One additional 700 HP A.C. Enginator on Platform A is being converted from diesel fuel to casinghead gas fuel. (d) Information relative to possible gas market has been supplied to requesting companies; however, no market has yet been found for the remaining gas not being used for fuel. (e) Waterflood equipment utilizing gas as fuel or as a stripping agent have been ordered for the Platform C water- flood as follows: Two 1100 HP gas fueled turbines, one oxygen stripping tower. (f) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A 2 Steam Generators (converted from diesel fuel) 2 700 HP AC Enginators (converted from diesel fuel) ,~. 1 440 HP Gas Lift Compressor 2 llO0 HP Gas Lift Compressors Platform C 3 Steam Generators. (converted from diesel fuel) 2 950 HP AC Enginators (converted from diesel fuel) 1 660 HP Gas Lift Compressor li00 HP Gas Lift Compressor 1 4 FURTHER AFFIANT sayeth not. SUBSCRIBED AND SWORN TO before me this -- day of Notary Public in and for Al~fska NAy Cornmlsslon Explre~ August 30, 1971 AGO 85Z'1. 22. WALTER J. HICKEL, GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS 3001 PORCUPINE DRIVE--ANCHORAGE 99504 September 9, 1968 TO: COOK INLET GAS PRODUCERS Subject: Extension of Conservation Orders #32 and #61 for an Additional 120-Day Period A review,'* materials July 15, It ~iS Co~i actively pursUil which is beinI . wi1 ,as of the contained in .our directive of ~ors are icially uti the gas Directive Conservation Orders #32 and #61 will be extended for an additional 120-day period from this date or until January 6, 1969. Affidavits from Cook Inlet gas producers showing further efforts made to utilize casinghead gas will be due at least 30 days prior to the expiration of the 120-day extension period or by December 9, 1968. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee AGO .852J. 2~3 b~ILING LIST Letter to Cook Inlet Gas Producers dated September 9, 1968 Subject: Extension of Conservation Orders #32 and #61 for an Additional 120-Day Period Mr. W. G. Christensen Mobil Oil Corporation P. O. Box 1734 Anchorage, Alaska 99501 Mr. Robert T. Anderson Union Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 Mr. Robert Hartig Assistant Attorney General 360 K Street, Suite 105 Anchorage, Alaska 99501 Mr. R. D. Allen Shell Oil Company 430 Seventh Avenue Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Mr. loy. d K. Kreblll F · , Pan AmericanPetrOleumCorporation P. O. Box 779 Anchorage, Alaska 99501 AGO 85212~ TO: r' Thomas R. Marshall Division of Mines & Minerals THRU: DEPART~NT OF NATURAL RESOURCES James A. Williams ~ Directo~-l~ Division of Mines & Miner~t'~ FROM: Dale Wallington ~.~ Deputy Commis s ioner~w- '~ SUBJECT: DATE : August 22~ 1968 Conservation Orders #32.& 61 This office has perused the material on the Conservation Order #32 and 61 pertaining to flaring of casing head gas. It appears that the companies are making an honest attempt to find a utilization for this material. Therefore~ it is recommended that we continue the two conservation orders~ by administrative decisioq with the same stipulations as in the past. DW :w lm REC'D--COLLI~GE AU G 2 6 t968 DIV. MINES & MINERALS ,A GO 8 52.12 5 , DIVISION OF MINES AND MINERALS TO: i-Thomas R. Marshall Petroleum Supervisor Division of Mines & Minerals DATE : August 21~ 1968 FROM: James A. Williams Director Division of Mines ankJ~jnerals SUBJECT: Beneficial use of gas Conservation Orders 32 & 61 Your memo of August ]3, 1968 The statements presented by Shell~ Pan Am~ Union~ and Mobil justify the continuation of the subject orders by adminish'ative action. JAW/rah cc: Dale Wallington AGO 852126 FORM ,SA- I B 125.5M 8/67 MEMORANDUM TO: r- FROM: State of Alaska DATE SUBJECT: AGO Union Oil Co. - Operator Benefic!al Use of Produced Gas . . TRADTNG BAY UNIT G~ayling Platform A. ~ment Now Using Gas 2 Glycol boilers 1 Solar turbine driven generator B. A~ditions to be Made That 5~ill Use Gas 1 Steam generator 2 Solar turbine driven' water flood pumps 1 Solar turbine driven crude oil pump 1 Solar turbine driven gas compressor 1 Gas lift compressor engine Dolt~ Yard'en Platform A. Equipment Now Using Gas None B. Additions to be Made That Will Use Gas Solar turbines (2 - for water flood, 1 - for generator) Gas lift compressor engine Steam boiler Glycol heaters Deoxygenator tower King Salmon Platform A. E_q~pment Now Using Gas 700 }{P gas lift compressor engine 'B. Additions to be Made That Will Use Gas 1 5000 HP turbin6 driven water flood pump 1 Steam generator 1 Hot water boiler 1Deoxygenator tower RECEIVED DIVISION OF MINF. S & ANCHORAGE AGI] '8,5 2,1-. 2tl · ?~DING BAY ONIT (Cont. WEST FORELAND ONSHORE SiTE A. Equipment Now Using Gas 5 Heater 'treaters 3 Heaters 2 Generator units 2 Glycol boilers 4 CIPL pumps 2 ~ACT building heaters 2 Heaters for pump ,motors Heat £or construction camp B. Additions {o be bIade That Will Use Gas 3 Heg~er treaters 2 Flow splitters I Generator unit 1 Glycol dehydrator 3 CIPL Solar turbines 2 Skim tank heater~ TRADING BAY PLATFOR~,I A.Equioment N6w Using Gas 2 Glycol boilers 1 Cat AC generator B. Additions to be ~Iade ?'hat Will Use Gas 1 Steam generator 1 Gas lift compressor engine .}. R'ECEIVED -' , DJ¥1$1ON OF MINF.'S & MINI~RAL8 ANCHORAGE AGO 852129 · Union Oil Company o, California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 August 8, 1968 R. W. Yarbrough District Operations Manager Alaska State Division of Mines & Minerals Department of Natural Resources 3001 Porcupine Road Anchorage, Alaska 99504 Attention Mr. Thomas R. Marshall, CASINGHEAD GAS UTILIZATION COOK INLET, ALASKA The attached data sheets (2) describe current and planned utilization of casinghead gas for properties operated by Union Oil Company of California in the McArthur River and Trading Bay Fields. This information is submitted in compliance with Conservation Order 61. Very truly 'yours, R. W. Ya(i~gh Attach. RWY:nnb _D~VI~IOI~ O~ MiNF.$ & AGO 8521.30, August 7, 1968 700 "G" STREET ANCHORAGE, ALASKA 99501 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Gentlemen: In response 'to Conservation Order ~61, and your request in a letter dated July 15, 1968, Mobil Oil Corporation as Operator at the Granite Point Platform respectfully submits the following data. On the Mobil operated Granite Point Platform we are now installing one 800 KW gas turbine powered generator set which will utilize about 300 MCF/D fuel. The startup date of this generator will be in September 1968. Two compressors, one 1550 H.P. and one 350 H.P. with fuel require- .ments of 300 MCF/D and 60'MCF/D respectively, have been purchased and are enroute to Granite Point at the present time. They will be placed on the platform in August and put in operation in September-October, 1968. Pilot waterflood tests are being conducted. If successful, we will purchase approximately 4-1100 H.P. gas turbine powered water injection pumps in late 1968 or early 1969 for a full scale waterflood program to be initiated in late 1969. At the Granite Point Shoresite two 500 H.P. gas engine driven shipping pumps utilizing 200 MCF/D were ordered in May, 1968 and will be in operation in September, 1968. The foregoing is in line with our testimony presented in hearings before the Conservation Committee on February 7, 1968 and May 8, 1968. However, the compressor horsepower being utilized is less than anticipated because of a higher-than-expected decline in oil and consequently, gas production. Very, truly yours, W. G. Christensen Area Superintendent CAChampion:cg RECEIVED P, LJG 8 1968 DIVISION OF MINES & MINERAL,~ ANCHOR, AG['-' STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES Alaska Oil and Gas Conservation Committee Re: The beneficial use of gas produced as) a result of crude oil producing operations) in the Middle Ground Shoal Oil Field ) Conservation Order #32 Middle Ground Shoal Oil Field. May 10, 1968 AFFIDAVIT OF St{ELL 0IL COMPANY REGARDING UTILIZATION OF CASINGHEAD GAS State of Alaska ) ) ss Third Judicial District ) and says: Comes now A. A. Winn, being first duly sworn, and deposes 1. That he is Division Production Manager of Shell Oil Company, operator for a joint venture composed of Shell Oil Company, Standard Oil Company of California~ and Atlantic Richfield Company; and that he makes this affidavit for the purpose of complying with Conservation Order #32 dated May 10, 1968. 2. That in the period following the May 8, 1968 hearing the following steps with regard to utilization of casinghead gas have been taken: (a) One additional 1100 HP gas lift compressor using casinghead gas for fuel was placed in service on Platform A. (b) Two 950 HP AC Enginators on Platform C were converted from diesel fuel to casinghead gas fuel. (c) One additional gas fueled il00 HP gas compressor is in the process of being installed on Platform C. (d) Plans are completed to install two 1100 HP gas turbines in operation before the end of 1968 on Platform A to drive waterflood injection pumps. , . (e) Plans are completed to start shipping casinghead gas to shore to replace purchased fuel gas at our onshore treating facilities. (f) All produced gas is now being circulated in gas lift operations. (g) No market has yet been found for the remaining produced gas not being used for fuel. (h) The following schedule summarizes equipment on Platforms A and C using casinghead gas as fuel: Platform A 2 Steam Generators (converted from diesel fuel) 2 700 HP AC Enginators (converted from diesel fuel) 1 440 HP Gas Lift Compressor 2 1100 HP Gas Lift Compressors Platform C 2 Steam Generators 2 950 HP AC Enginators (converted from diesel fuel) 1 660 HP Gas'Lift Compressor 1 1100 HP Gas Lift Compressor (not in service yet) FURTIiER AFFIANT sayeth not. 1968. SUBSCRIBED AND SWORN TO before me this .... =~/' --' day of f_~ ~ RE, C, EIVE9 DIVISION OF MINES & MINERALS ANCHORAGE Notary Public in and for AlaSl~ My commission expires: ~...~,,:..~:,./...t~./,~¢, /~';'.;,~/ AGO, 85 ZtL 33' ' SHELL OIL COMPANY 430 7th AVENUE ANCHOF~AGE. ALASKA 99501 JUL 3 .1. 196~, Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr. Marshall: Attached herewith in compliance'with your directive dated July 15, 1968, is an affidavit detailing Shell Oil Company's efforts made in the period following issuance of Conservation Order No. 32, Middle Ground Shoal Field. We request administrative extension of Conservation Order No. 32 without hearing for another 120 day period. Very truly yours, A. A. Winn Division Production Manager Attachment AGO 85 , ' PANAMERICAN PETI OLEUM COI POP. ATION SECURITY LIFE BUILDING DENVER, COLORADO 80202 July 24, 1968 File: AMR-1916-986oSll Re: Showing of Efforts Made to Utilize Casinghead Gas, Middle Ground Shoal and Granite Point Fields Mro Thomas Ro Marshall, Jro (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Dear Mr~ Marshall~ RECEIVED DIVISION OF MINES & MINERALS ANCHORAGE Conservation Order No. 32, Middle Ground Shoal Field, and Conservation Order No~ 61, Granite Point, McArthur River and Trading 'Bay Fields, each dated May 10~ 1968, "will be effective for 120 days (or until SePtember 9, 1968) and may be extended in successive 120 day periods upon a showing by each Operator to the satisfaction of the Committee that the Operator is actively pursuing a program to beneficially utilize the gas which is being flared°" By your direc- tive dated July 15, 1968, operators have been asked to submit an affidavit before August 9~ 1968~ detailing their efforts and results. Pan American~ an Operator in the Middle Ground Shoal and Granite Point Fields, on behalf of its partners in the Chakachat-na Group, Phillips Petroleum Company~ Skelly Oil Company and Sinclair Oil and Gas Company, herewith submits the requested affidavit and makes Application for Conservation Orders Nco 32 and 61 to be extended administratively .without a hearing for another 120 day period~ As support of the affidavit and Applicant's request for a 120 day extension of the Orders, Pan American states that it continues to pursue a program which will provide as many additional beneficial uses of the gas, which has been beneficially used to produce the most valuable product, the crude oil itself, as is feasible: , At MGS Platform Baker, we have converted two AC and two DC power generators to gas and also a steam generator~ The gas lift corn- I pressor and a glycol regenerator (not included in earlier forecasts) use produced gas for fuelo Nine Kobe triplex gas engines (not eight as we had forecas~ at the January 16, 1968, hearing) have been in- stalled at Platform Dillon. A steam generator and two AC generators will he converted in the near future at Dillon° The drilling program at Dillon is very near completion so it is no~ practical to convert ~he DC geneira~ors which power the drilling riga AGO 8 52.135 File~ AMR~1916~986oSll July 24, 1968 Page 2 RECE!VED DIVISION OF MINES & MINERALS ANCHORAGE Plans are underway to make use of produced gas at our East Foreland facilities for glycol heat tracing of the facility piping systems and all other fuel requirements will be supplied where practical° Gas engines will power waterflood pumps on both MGS platforms when installed in the future° At Granite Point Platforms Anna and Bruce, conversions of the power generators that were to be completed by the February 7, 1988, hearing were not accomplished at that time because Line "B" to shore became plugged with ice which required that we revamp our timing of these conversionso After Line "B" became thawed, the Line was found parted° Repairs have been completed and the platform generators necessary to serve future producing operations and the small drilling rigs will be converted to fuel gaso (Plans a~e under consideration to remove the big drilling rigs from the Chakachatna .platforms in both fields in the near future when platfor~ well drilling programs are completed)o At our Granite Point platforms, two gas turbines use produced gas for fuel and one steam generator has been converted to gas° Another steam gen- erator will be converted soono Since The February 7 hearing, we have installed two Kobe triplex gas powered engines and plan ten more such engine installations° Although as time goes on we find the need to make certain adjustments to earlier indicated plans concerning oum platform operations, we believe our gas rate forecasts that were presented as evidence .at the hearings on these four platforms earlier this year remain reasonably valid° Certainly no more gas than had been predicted will be produced and quite likely a lesser volume of gas ultimately will be produced from the two fields° Action towards initiating our secondary recovery plans around the plat- for~s in these two fields is moving forward at satisfactory rates~ The join't (Chakachatna~SAS Group) lease line water injection well, MGS 17595 Well Noo 12~ is drilling below 7000 feet~ Management approvals are now bel.n~ solicited covering waterflood plans at Platform Dillon° The Granite Point "B" 187~2 NOo $ well continues to receive water, injections totaling 89,~40 barrels as of mid-July0 The injection rate has been about 1500 BW?D at ~,000 psi, a lower rate than we desire° Profile work indicates not all sand members are accepting wa.~er. An expensive workover is underway to improve the injection profile and rate° Cooperative inJec- 'tion agreements among the operators are being finalized to put full scale, waterfloods into effec~ in both fields° We s~ill hope ~hat a market can be found for the remaining produced gas which is not being used for fuel and we will continue our efforts in this re~ard0 However, unless the situa~ion changes markedly, we foresee no immediate solution to this problem° The progress we are making toward waterflood operations in Middle Ground Shoal Field will, on the other hand~ depress future gas production ra~es by reason of =he operators having repressured the reservoirs in ~his field° We are evaluating waV, erfl, ood operations at granite Point and, if the tests are successful in that field, we will accomplish the same objective of depressing future gas production rateso File ~ AMR~lg16~986 July 24, 1968 Page 3 We ~espectfully request your administrative approval to extend the captioned Conservation Orders for another 120 day periodo cc~ Mro James Ao Williams~ Director Division of Mines and Minerals Box 5~300 College, Alaska 99701, Yours very truly, See Attached Mailing List STATE' OF COLORADO ) : SS COUNTY OF DENVER ) Ro Bo GILES being first duly sworn upon oath deposes and says that he is Engineering Group Supervisor, employed by Pan American Petroleum Corp°ration, that the foregoing Application, has been prepared under his supervisionand direction, that he, is familiar with the information contained in the ApPii-, cation and that the matters and the things therein set forth are true. and correct to the best of his knowledge and belief° ' % Ro BJ Giles Subscribed ~nd sworn to before me this 2qth day of July, 1968o ' ' Notary Publi My Commission expires July 26, 1970o RECEIVED .,, ~,,,, /~; ,,, DI¥1$1ON O!:; MINES & MINE~L8 ANCHC)R,~GE AGO 85Z~ 3T MAILING LIST Mro Ao Ao Winn (3) Shell Oil Company ~30 7Th Avenue Anchorage, Alaska 99501 Mro Wo Go ChrisTensen Mobil Oil Corporation Po Oo Box 173~ Anchorage, Alaska 99501 Mr° R~ Wa Yarbrough (3) Union Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 Mro Co Lo Cox Sinclair Oil and Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 Mr° Ho Wo Patterson Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mro Fo Lo Franz Skelly 0il Company 1088 Lincoln Tower Building Denver, Colorado 80203 Mro Wo Po Whitmore Skelly Oil Company Po Oo Box 1650 Tulsa, Oklahoma 7~102 Mr0 Ralph Go Crews Suite 600, 425 "G" Street Anchorage, Alaska 99501 Mro Fo Ko Krebill Pan American Petroleum Corporation Po 00 BOX 779 Anchorage, Alaska 99501 Mr° To Jo Files Pan American Pe~,roleum Corporation Security Life Building Denver, Colorado 80202 AGO 8'5 Zl. 38 WALTER J. HICKEL, GOVERNOR DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS 3001 PORCUPINE DRIVE--ANCHORAGE 99504 July 15, 1968 TO: COOK INLET GAS PRODUCERS Showing of Efforts Made to Utilize Casinghead Gas The following procedure will Committee to check on of the Middle Ground River Fields that satisfactory effort is being cial utilization the casinghead gas now Operators , at expirat Order ' s ii and 0tl and Gas Conservation ring by the operators Bay and McArthur to seek benefi- :d: ion These Orders werei?ef.fective on'May 10, 1968, therefore an affidavit will be due bY.August 9) 1968. .Very truly yours, ,. Thomas Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee AGO 852.139 " Letter dated July 15, 1968, to Cook Inlet Gas Producers - Subject: Showing of Efforts Made to Utilize Casinghead Gas - sent to the following: Mr. W. G. Christensen Mobil Oil Corp. P. O. Box 1734 Anchorage, Alaska 99501 Mr. Robert T. Anderson Union Oil Co. of California 2805 Denali St. Anchorage, Alaska 99503 Mr. Robert Hartig Assistant Attorney General 360 K St., Suite 105 Anchorage, Alaska 99501 Mr. R. D. Allen Shell Oil Company 430 7th Avenue Anchorage, Alaska 99501 Mr. Tom Files, Division Attorney Pan American Petroleum Corp. Security Life Bldg. Denver, Colorado 80202 Mr. Floyd K. Krebill PanAmerican PetroleumCorp. Box 779 Anchorage, Alaska 99501 A~O 8521 40 STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that ...... s.~ .... is the ir.,.-; ,,-~,-,-,-> of the - - ;c,~ - - ~¢~ ~ ' ' %:.-.:,."c/~.' 1'~ ....... ~ · Anchorage News, a da~Jy news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Coup, 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¢~,~!--~otic~--;h-9$5 as it was puoli'snea~n regular issues (and not in supplemehtal form) of said newspaper for. a period of ..... on'~ ...... insertions, commencing on the ----!0 ..... d~y of ----Apt-'i-t-i .......... ,'19 --¢'->8, and ending on the ......... 10 ...... day of f ......... -A~, '-i-l- ........... ,19--68-, oth dates' ~ndusive, and i-Hat 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 $ 10,00 which amount has been paid in full at the rate of 25¢ per line; Mini- m u ~.4~ge $7.50. Subscrib~a.nd sworn to~efore me this ..-~6- day of ...... ~9..~8 .... ~ ~ . ...... ;J;~~,:;~ ....... ......... ~~~~. ~ " Not,n/ ~Pub[[c i~ ~nd for tha St,~e of Third Divis[om . A~Horage, Alaska" CO~tI~ION EXPIRES ..... ..... Z.Z .... ,,..2Z -. . NOTICE OF CON~lXU.~N~ OF PUBLIC HEARING STATE OF ALASKA. DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska 0il and Ga~ Conservation Corn raitte, Conservation File No. 3~ Re: Beneficial use of gas produced ~s the result of crude oll produch~g operations in the Middle GroundI Shoal Field. · The 0il ~nd Gaz Conservation[ Committee ha~ been advised o~ cer-~ taln marketing developments xvhlchJ warrant a further conttnuanca ofj .tl~ls hearing. Therefore, the public hearing scheduled' r¢~r April 1968, has been cancelled ana xvill toro,averted on May 8, 1968, at 9:30 a.m. hx the Z. J. Loussae I,fbrary, I Fifth Avenue and F Street, Anchor. age, Alaska. Thomas R. Marshall, ,tr. Executive Secretary Alaska Oil' and Gas Conservation Commltte~ "3001 Porcupine Drive Anchorage, Alaska 99504 Publish: April 10, 19~8 Legal No.. 965 AGO 8521/,.1 NOTICE OF CONTINUANCE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Conservation File #32 Re: Beneficial use of gas produced as the result of crude oil producing operations in the Middle Ground Shoal Field. The Oil and Gas Conservation Committee has been advised of certain marketing developments which warrant a further continuance of this hearing. Therefore, the public hearing scheduled for April 10, 1968, has been cancelled and will be reconvened on May 8, 1968, at 9:30 a.m. in the Z. J. Loussac Library, Fifth Avenue and F Street, Anchorage, Alaska. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish April 10, 1968 AGO 85,2 lz~2 ~'!ro J~aes L. Car!ton~ Jr~ State Oil and Gas Su',peu~Ti,sor I~yoming Oil and Gas Co. creation 'Cc, r~uission EgG Building ~ ..... Dear Jim:' · Our State is concerned about the flaring of caslng?~ead ~s in cur ,offshore Cook Inlet oil fields. The total volume flared from all p!atfo~s is presently 56~000~.000-cupric fse~ of gas per day and rising raIi~,'ly. (Je estimate that 177 Ail!ion ~ubic fea~ ~i!l uitimate!ybe f%arad from our presently discovered fields if a uarke~ is no~ foun.d~ We have held several fact-~imding hearings and are currenz!y ~aiting for soma promised marketing data to develop before arriving a~ a ~ecision .as to whether or not to order the flaring to cease. Our legal ~dvis,~r hat provided ua uith legal revig~.~s o~2 court casgs covering litigation on aa'train T,axas R~i!road Co:~nission decisions and also ,~ha ~tigatio~ over_'~ have fo'~d these legalc~=='~,',~u~- ..... v, ary ~'~-,~'~,,~'~'~o bu~ no~ va~y he!~fu! in dater~ng the offshore Cook %~et ~'gtars ~J%ere trans~3ortztion costs are ~tramaly high~ ' ~ '~d' ~d .. the domestic gas market needs ara completely zille ~ ~trochamica! a~d LNG pl~ consumption ~i~ not dav~loo for several years~ Specifically~ I ~culd greatly appreciate any opinions you may care to m~e on your regulatory ~reat~ent of flared gas in remote areas. For inst~%ce~ how do you handle the.flaring of sasinghead gas from a. newly discovered field having a gas-oil ratio in the range of 500-1 ~here the gas ilnas, are ~zny miles a~z~ny 'a~nd r~serves ara not defined? 'ii%is is not the first tilde w.'_ ~'~mve~ 5. cL~3arded you uith ~uestions. . The aid you have rendered in past years Ilea been val,uabla. Some situations .. ~."~. Carlton - 2-. may not have close ? .... ~I'~::¢' to those in '?;',~ State of ~{.Tyomim~. but I F:.~v c uS, ~.~,.. as sured ~-~'~'~' your help is very ~-,-~'--* ....... to our i look fo~::ard to visiting with you ':':'~'~:,in the next tiros I am in Uith personal res;ards~ ,' ,' Petroleum Supem~isor AGO 852 I~4 , D A,'",E~tCA,"'~ PETR.,zLEUY C'~RP TION ," " . ., R,.: $ E,~,~ C h' DF_P.~R THENT ' GAS CHROMATCGRAPHY. ANALYSIS · $~b~L~ ,XCo ,iA-11& "' CGb!PAblY PAN AME~IC~ ' ' ' "~ SJPPLE C'F GAS CCLLECTED. FRO~ PIPELINE AT SHO~E 0 FIELC' GFJ~tIE PCIN'T ' ' "'~"' ,. P~A~T .m...... ~.." ':..'...F. ''.:.'.:.'.'m,,::~'. ' : .'z', ,' . ' ' '..': .-.. ' . LCCAIIC,~ ll.~,ll', CCU~NT'Y KE,~A[ BOROUGH ....... 0 SIJi6 c2 P~CVI,XCE ALASKA' CG~NTAINER NO. SS-20 . . F~ESSU~E 24 " TEMPERATURE 52"'" '"" DEG'"~ .~;~".::-'.',...'.:.,L.:>.',,.'.~'.:.';-.. ~ELLECI~G 8~ J.C. MAY DATE COLLECTED 09-i5-67 T~S,~IT'IE~ BY F.K. KREBILL.',,:.f:..,,',:.:'."'.~,".7::',',, 'DATE TRANSMITTED 0~2b-67 "' ""'L~"., '"'"' L~ ~. F-1773~ ' .,. .FILE.NO. 'FKK-125.B-220.2. ... :::'....,.~ . G~IE R~CEIvEG~ 1~'I'8'6'7''' ":':":'" ',.L?. '":":'~::'"'::'""::~ '"'~' DATE REPORTED ..... ~O-I~BT ' ;" ~A~S ~T~RMI~6 CCPPGSITION O~ GAS A'T EAST FCRELAND FAC.~Ig.5 MI.FROM WELL~ .. ..........: .?,..,.~=....~:..~:~..:.?i...,~:?:.~ ANALYaIS, VULU,4m PERCENT AIR FREE....'~...:.,..'.": ..... '..::..;...:~..:.'.?..~.....J . '~c,~. '. " C R6ON DIOXIDE - ' · lu~-m ) '- ; .' , 0.39 HEXA,~ES , ' ' ' "' ' ' ZJ ~ ,, ".. ~' .].', .:,." .':'~-~ F' ,~' ).:.~:'~.~,' ~..::,'4, ~L:~';';. ~": :':.. T:, :,:?',~..' · ,' '.'. ...... ' .. , . , ...... : ..... .....':7.'.,'., ;" .':: ..~:~::.,?'::~ ~:~:'~.~ ~;'.:~,~iL.. :.. :", ,'.~ :!.:~.'~i7¥::.', .. ' ) ' ', .. ~ "' ' ' 0.8095 G~AVITY lAIR = 1.0J . ....;.~..;?:' :~?:..~..?,..~. =;~:?:.::.=.?.,~?:~?~ = ~..=~.?!:. s.!.:,::~'~".~'.'.?...~?.. ~.:' ?? ~'.':.?'. '..... =.: .. =.., ~...:..~..~ ..~..=......,?..~,~::..==::, ?=..:,.:......:?.~...?.:~ ......,..,.....?.~ .....=.=~,~....~;,:.,~ ... ',. ~.".~';~: ;~?.L~?J.~.~?:Y.T~:.~?:~.(??.~...?;`~?~:.~`;:~.~f~F:.:/..:.:.?L.~L~...~:~:.b?. ?;:.]:].'?~?.'. ',' ,':;?': ".': ", :'"" '~ '":" "~" :" :,:'" ': '::::'."7' ": .':.". ': ,J: '":.'./:?,': :'?"'?'.: ;" :' '.-'."',' "'~,.::':';:L",,,'.'/:':".:.'::: h':. ::::'".". :'.'.~:'::'::',:~ ~ ,, j .~`........~`~..~`.~?`.~`~=..~?~='~..~..¥..;~..~.?~..?..~?.;.i.~?~'~ ....... ~":'~ ....... ' ~"'~IEACAPTAN .......... 'suLFuR;"~G~AI~S/iO0"~CU,FT~'"="'; . . ". ' ' ' .- . · .' NGAA TOTAL' SULFUR, HEIGHT PERCENT ~ ~ ~'~-~-'- ' ., . , . .. ~... , . · :, ,..,'.._-,,,.....~,,,.. ,.., ~...: . . . ' ~." :; :.:...%.~ .,Z .'i:,....X::..~..';:: k'"' ',". .L .,:. ~.-- .~..':~' .',".:.'.:'. ",::::'..'..' . 52,60 PERCENT OF AVAILABLE NCRNAL BUTANE' 0.00 PERCENT GF AVAILABLE I SOBUTANE · % ,' :".: ..'."?.~.F .' ..', ,':'.::"'3:': ..?',~.?'"' :. -'...~ r',. ,:.:t'.:,,. ,'. . .",.." . ... . . .. '"'""'"" "'";" ~" ~''' '":' ..... ~',59' 'G,P.H. 'O"'"r ~..P~O~N~ ~ ~" '= 'AND'': HEAViER'7::~.'~:"~:':.~ ~. ~ ~'.~?'~:' ':.?::~. '.. 2.i0 "G ,P .M :."]OF BUTANES' AND HE'AV 0.76 G.P.M. OF PENTANES AND HEAVIER ., ',': , ."~......'"'...7,.~".'. :' :?::.:"~?.:.-.'.~....:.~.:~:.:'.~'.:.~O3.O"'. ESTIMATED 'MOL::' WEIGHT OF HEPTANES AND H~AVI ER" ..." . .~ .~ :.. ;.... 7 ..':' ...'.::.::.:..:'-..:~:.::~.~. ,.*'Y:,'...:??,".~:,:;'F:'.~:TC.:i)~.r..~?,~:. ~ ?:.'.:~w.':?2 ~'.~7~.~'-~::~Y%~.:';~Y~?'. ...:. ' '::. '.~ · ."::~' '."" :..":". :.: .... 2. ' ' '~-":' - . ,,.,. , . , .... +..:., ·, , ....~ . ,.%:,., .... ,.: ~.. ,. ,,, ~.~.;.,::, ......, , .. ~ :~.: ~.., ,~..,,;,~ , ~ . ,, ....:.: . . , , ~ . .. .. ..... :...,......~ ...; ?,.....,.....~.~,..??..... ...... ~..., ~.,~D~.~.:~.;~:~.~?,?~.....~.:.?<,.~?~-~.~....~,?~.....~ . .... ..~:.~: ... ...... ..........;..... . . ~-" ~. ~~0~'" ' · . ' ".:': "-.' .... "."~'~ ::' "" ....... :'.':."~..'.:¥.'".:"~c~~. ...... :*~,~?::"¥~:":".'?.'~':'~':::':~.'-' ".".~:~ "~:.~ ......... ~."~':':~ ..... -' ..... :?.'"'..:'""" ..' ..... '" ..... ' .... ':.:'~ ..... ' :"::-'.':.:'::...":.",':~.:.;.:':?~.":'...?'.~4.?:.¥'...k:.':,,7..2'>"':'.:,::::~:.:~.~'2.".,::~:'~:{.~.h.:~:'S.:~....<.::.'.'~':..:.,w'-.'..~?~,.,.:~¥:J:~:~':~.T:e:...'<, '.', '.~ ;?' % ' ,c :" .....> ~ ~ '. : ". · . '~.- ,- F.K. ~ebill "' . '' i IJ I I DIVISION OF MIN~S & MINE~ :,. ".,'. ",' . ', .... '. ANCHO~GE "" ........ ............ ...... ........ . ..... ...... .................... ........ , ........ . .................. "..:. :~t'.',',:..,..F '.'.:C: ".:,, L,"i.,, L. :.. ,, :¥,/ :'~ '..L ~".:",: ,~.'.'~. ,.:: ,'..'~ ~' .M':E~ '?,'.....:'.7,c~'~'~'h .~..'."'::,?;~':~." ,"' :'.~,.:"':.: '<?. ',c:~ ?.,..:'?' L.. '. 7/: ~:,~' ,', ..... ,:: '. ::. ~ . ' .. ~","~':~".'~:~'.";~:"/,~:?~:."?~%?.'~'.?.: ~'"~'~'~'~':'"':':::~:"'/-"~:~''':~'~/~,~.~;:~;::::'~G~?~::~''~:~:~:'~.':~L~??'~'':'?'.:.'' ~ a~z~ ,:-'"' '-" ~ · AFFID,.VIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that .... she ...... is the.legal_clerk ...... of 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 .lega!._natiee..#...839 as it was published in regular issues (and not in supplemehtal form) of said newspaper for. a period of ~o31e .......... insertions, commencing on the .~'~.~__day of ~.e~.~!~;~. ........,'19~.__, and ending on the ..... ~3~_d. ..... day of of .Eebr~z.~ ............ , 19_.._~, 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 $ 15.25 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50, ~. . ..... _,./._ ............ ~, ..................... Subscrib,~ed and ;~rn to before me this 2-~:r'~ ................................... ~y ......... Not~ Pub.~ m ~nd ~r fh~ ~f~fe ~f Absk~, Third Division, A~horage: Alaska MY CO~I~ION EXPIRES FINDING AND NOTICE 01~ CONTINUA~NCE OF PUBLIO HEARING STA~ OF ~SKA DEP~T~ OF NA~ ~SO~CES D~SION OF ~aska O~ ~d Ga~ Con~a~on Co~i~ee Conse~a~on ~e ~o, ~ ~ubHca~e~ ts be~ H~ed ~ clar~y the word~g of the pubHca~on dated February ~5~ ~8, ~ make clear~hat a hea~g on t~s conse~a~on file ~H be held oa April 10, 19~). Re: Bene~ use duced as the result of e~de oil p~due~g opera,OhS In the Midge Gro~d Sho~ Field. Tes~mon~ at the within ~ days aft~ w~ch neg~ tiation ~Or purchase ~t~ ga~ ~ ~he Middle-Ground Sh°ii' ~d Gr~lte Point Fields would be~in. In order for the Committee to benefi~ from this critieil '~study, without wMch it appears a i~l~ and equitable deed sion on thii' hea~ng may not~ be rendered, .~,.~..benefit from other further .studies or testimony whieh may hav~:~ hear~g on this matter, the hearings on Conser- vation ~le No. 32 are hereby con- t~ued and ~'~1 ~ be~ reconvened on April 10, 1~68, at 9:~0 a.m~ ~ the Z. ~. Lo,sac Ltb~a~, Fifth Avenue and F Street, Anchorage, Alaska. ~omas R. Marshal~ ~. Executive Secretary Alaska OH ~d Conservation Committee 3~1 Porcupine DriVe Anchorage, Alaska 995~ ~ublish February 2~ Leg~ Notice No. 839 AFFID. .VIT OF PUBLIC.sTION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that .... she ..... is thelegal.-ale~k ........ of 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 .legal--~tic~--~-.832 as it was pul~lished in regular issues (and not in supplemental form) of said newspaper for- a period of ...... orte .....insertions, commencing on the of Fet~,Inla~ ........ ,'19 _68, and ending on the ..... .'Lb~h ..... day of of ._~ebr~[z~____~ ............ , 19_.6.8.., both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing ali of said period. That the full amount of the fee charged for the foregoing publication is the sum of $ ll,?5 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. Subscribed and sworn to before me th is__]~6t]day of__ ~Eebrnar~., · ,4; /~ ~ ,, .> /~ ~f' , , Nota~ Public in a~d for the Dtate of Alaska, Third Division, A~har~ge~ Abska ~ CO~I~ION EXPIRES FINDING AND NOTICE OF CONTINUANCE OF PUBLIC HEARING STAT~ OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee February 15, Conservation File No. ~ Re: Beneficial use of ~as produced as the result of crude oil pro- ducing operations in the Middle Ground Shoal Field. Testimony ~t the January 16 he,r- ing indicated that marketing studies would be cc,mpleted within 45 days after which negotiation for pur- chase of gas in the Middle Ground Shoal and Granite Point Fields would begin. Iu order for the Com- mittee to benefit from this critical study, without which it tippears fair and equitable decision on this hearing may not be rendered, and to benefit from any other further studies or testimor~Y which may have a bearing' on this matter, the hearings on conservation File No. 32 are hereby cgntinued until April 10, 1968,,,at 9:30 a.m. in the Z. J. Loussae Library, Fifth Avenue and F Street~ AnchOrage, Alaska. Thomas, Il. Marshall, Exeeuttve Secretary Alaska ,'Oil and Gas ConserVation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 '~'o'bl~sh: February 1~, ~.,ega~. Notice :No. AC~ 852L~6 FO.R,M 49'/ 5~65 1)ANAMERICAN P TP. OLEUM CORPORATION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 February 14, 1968 File: AMR-468-986. 511 Re: Granite Point Gas Dii,s~ois,it io, n Hearing Mr. Thomas R. Marshall,. Petroleum Supervisor Alaska Oil g Gas Conservation Committee 3001 Porcupine Dmive Ancho~age~ Alaska 99504 Dear Tom: You mequested during the gas disposition hearing in Anchorage a week ago today that each operator furnish you a typical analysis of the produced gas f~om its oil producing p~operties that were the subject of that hearing. Enclosed is the reqDested analysis for our Granite Point pmoducing properties. We consider this gas analysis most typical of our operations at Granite Point because it is a composite of the gas from all of our Granite Point wells as received from the underwater pipeline at the East Foreland onshore facility. Yours very truly, Attachment RECEIVE D FEB 1 DIVISION OF MINI~S & MINERAL3 ANCHORAGE AGO 852t4.8 FORM 497 5-65 PAN AHEmC P ,TnOL ,UH SECURITY LIFE BUILDING DENVER, COLO~DO 80202 January 5, 1968 CO1H IL ION Fi!e: AMR-33-986.511 Re: Request for Continuance of Hearing on Beneficial Use of Gas in Middle Ground Shoal Field (C~n's~a~'ion File No,' 3'2)" Mr, Thomas R. Marshall, Jr. Petroleum Supervisor Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Dear Mr. Marshall: We acknowledge receiving notice that the public hearing on the beneficial use of gas in Middle Ground Shoal Field will he reconvened on January 16, 1968. We request the hearing on this matter he continued for six (6) months until mid-July for the following reasons: , . , ' 1. All of the produced gas is presently heine beneficially used for the production of oil. Arrangements are made for an additional beneficial use for a partof the produced gas for power and fuel on the platform. 2. We are now attempting to determine whether a sale of produced gas can and should be accomplished as an additional beneficial use. Union Oil Company of California has submitted to the Chakachatna and SAS Groups a purchase offer to receive produced gas from Granite Point Field and the Middle Ground Shoal-South Middle Ground Shoal complex, the purchase site heing'the East Foreland facility. Time beyond mid-January is needed to negotiate certain details of this purchase offer with the offeror. · Phillips Petroleum Company has expressed interest in making a firm offer for the produced gas for their Plant. We desire to give Phillips reasonable opportunity to submit their offer without undue time restric- tions that may be created by having the subject hearing held on January 16, 1968. , AGO :~ 852 L49 ,' ,' ~. Thomas R. Marshall, Jr. January 5, 1968 Page 2 The Notice of Public Hearing is specifically confined to Middle Ground Shoal Field. Any purchase offer would encompass Chakachatna gas that is available for purchase from all other Chakachatna operations in Cook Inlet, namely Granite Point, South Middle Ground Shoal as well as Middle Ground Shoal Field. Operations 'in the Inlet have exp~anded considerably since the initial hearing on beneficial use of produced gas that was.held November 1, 1966. Broadening your Notice of Public Hea~ing to cover more than Middle Ground Shoal would seem appropriate under the circumstances and should eliminate unnecessary additional hearings. ., Your consideration of our request for a continuance and for an expansion of the scope of the hearing will be appreciated. If the hearing is continued as requested, acknowledgment of the Eranting of our request at the earliest date before the scheduled January 16 'hearing will help eliminate unnecessary travel and preparation by all affected parties. James A. Williams Box 5-300 College, Alaska... Dale Wallingt.on Deputy Commissioner Division of Mines and Minerals Pouch M Juneau, Alaska. F. H. Rathjen Shell Oil Company Box 3397 Terminal Annex Los Angeles, Californi~ 90054 Arlie Winn Shell Oil Company 430 7th Avenue Anchorage, Alaska Yours very truly, AGO 852150 le . e . . 10. il. 12. 13. 14. 15. 16. 17. 18. COIfSE!IVkTiOi'~ ..... ' .... ~",~z 1~0. 32 ifiddle Ground Shoals ~'~Yo-Fla'~'e'' Hearing Significant Technical Points Covered in Testimony - January 16, 1968. (Figures in parenthesis signify page and line from transcript) The Zelative amount of gas produced with the oil is small by oil-field standards. (6-9) The amount of gas produced ~-~ith the oil does not exceed the amount reasonably necessary to produce the oil to the surface. {6-10) i,{GS is an oil reservoir and principle conservation effort is to maximize the economic recovery of crude oil with minimum expenditure of gas energy. (6-15) Additional uses of gas are being made now and others will be used in the future and in the realm of power (6-21) . Provisions have been made to move gas to shcrewhere it can be sold when a market develops (7-6) Maximum beneficial use of gas is being made ~?nich can be made at present time. (7-11) in order to produce the oil: we must also produce the gas which comes with it. (8-6) The gas pressure energy has been fully utilized and only latent energy is present in the gas at the surface. (10-5) There is no excessive or improper use of gas energy being made at bliddle Ground Shoals Field (10-R1) Our operations should result in the maximum economic recovery of oil from the reservoir (10-22) We do not at this time believe that the lines from SAS Platform A to shore are capable of carrying gas. (16-11) Gas lines have been installed for a system that can be utilized for fuel usage on the platforms. (18-!8) We are now in a position to proceed in a logical and orderly fashion to convert all equipment (on the platforms) to natural gas. (18-20) Plans have been made to utilize produced gas for compressors, steam generators, AC power generators, gas 'turbines, and de-a-~reation of water for water flooding. (18-21; 19-3) Now using 10% of produced gas~ 33% in eighteen months, 50% in four to five years, and 100% by 1976. (19-12) The relative volume of gas available for Sale is quite small, being only equivalent to 37° of Beluga~ 2% of Cook inlet, and 1% of Kenai; hence the ~olume is insufficient to attract a market. (20-7) Eighteen separate .projects have been either planned or completed to util. i~e gas from this field. Lines and ccmpressors have been installed and other equipment ordered. (20-19) Should a market develop: ~e ~ou].d estimate that the value of this gas would be something in the neighborhood of one perce~%t of the value of the oil. (22-9) , Conservation File N°. 32 (Cont'd) ?fiddle Ground Shoals "lqo-Fiare" Hearing 19. We're talking about casinghead gas which is quite unlike gas well gas. (24-3) 20. There will be some excess gas available for the next six years but there will be a deficiency thereafter. (26-14) 21. 22. 23. 24. 25. 26. 27. 28. 29~ 30. 31. 32. 33. 34. Additional compression will be necessary to move the gas to shore for a possible sale. (28-17) The volume of gas available for sale will be available for only six years, which is a vez'y short life duration for a contract of sale as compared to the usual twenty to thirty year contracts for gas well gas. (28-23) Have entered preliminary negotiations with Union, and Phillips plans to make an offer. (25-t4) Low pressure of gas will require compression, wet gas will require dehydration, There is no constant rate of production and availability is dependent entirely on oil production rates. These factors detract from desirability of usage by utility corapanies, (29-12) A liquid extraction plant is uneconomical and there is no market for plant tail gas (30-1) It will cost one million dollars to pump gas into shallow gas sands, but' there is also considerable safety risk involved and contamination dangers in the water sands. (30-14) It costs more to store the gas than it is worth (31-2) '.There is not enough produced gas available at MGS to justify compression costs to inject the produc, ed gas. (31-13) The produced volumes are not great enough to maintain reservoir pressure if re- injected into the oil pool. (31-17) Reservoir configuration is not condusive to gas injection because the gas would channel through the reservoir rock to producing wells far to quickiy, (31-23) The mobility ratio of gas to oil is quite unfavorable for effective sweep, and gas channeling could be anticipated= leaving a lot of reservoir oiI untouched and 'therefore unrecoverable. (32-5) Water injection would be about one-ninth the cost of gas injection. (32-1) zz~e~e zs no gas escaping into the open air from any well producing oil an. (at ~¥LGS) of gas in excess of the amount which is reasonably necessary in efficient production of that well because ~f this solution gas were not p there would be no oil production at k~GS. (33-22) The amount of gas escaping into the open air is less than the amount whic necessary in the reasonable production of the wells because some of the p is b~zno utilized for fuel. !'~ wil~ remain less than that amount.t.hrougk the life of the fie]id. (34-7) [ gas :he :oduced ~ is roduction out ,852152 35. Conservation l~ile I~o. 32 (tout'd) Ground Shoals "No-Flare" Hearing Everything has the dollar sign attached to itand the undertakings must generate a profit or have every reasonable prospect of generating a profit. (36-7) 36. About sixteen to eighteen billion cubic feet of gas will be produced and flared in excess of volumes required for lease usage and fuel on Shell leases. (40-24) 37. The same ratio would hold for Pan AmeriCan properties. (41~6) to ti~e 35° it's not feasible to inject produced gas ir~oil reservoiz'.sbecause there isn't enough gas available to mainta,~in pressure° ~4i-12). 39. It isn't feasible to store gas in shallow gas sands because of the uncertainty as to how much can be recovered and-the cost of putting i~. in the shallow gas sands exceeds the valBe that you would' get it back for and use it. (42~3) 40. Pan Am did not have information on 'the voluine of LPG'S blown to air each day. (42-13) '. 41, Lines have been installed which will permit the transportation of all produced 42. gas to shore. (43-1) Operators~ studies indicate: It's not feasible to re-inject the gas for oil recovery, 2, It's not feasible to re-inject gas for storage. 3. it's not feasible to move gas to shore to extract liquids because of small volume. 4. There is a short life availability of gas. (43-4) 43. z~5. 48. l, fore than just Middle GrOund Shoal' Field gas 'has been involved in the Union offer to purchase, analysis of an extraction p!ant~ and Phillips offer to purchase ' gas. (44~19) Even if gas were contracted for sate, it couldn't be sold before sometime in 1969.. (45-11) In reality now, we feel that the gas is of no value because we have not found a place to market it. If a market were found~ an estimate of value would be about 1% of 'the oil. (46-18) This is gross value before deducting expenses. (47-4) t erhapo under the Union proposal, oome o: the gas could be injected into n-shore reservoirs. (49-10) If dry gas is returned tO a gas reservoir with original pressure, loss will occur in the water zone and formation may be ruptured due to exceeding thg~ overburden pressure. (51-1) Good progress has been. made in consideration and investigation of additio al c, from 1,.~GS since Novembew 1, 1966~ Additional wells have beneficial uses of =as been drilled and producing characteristics, and reserve data have been evaluated to make meaningful analysis of gas disposition. (52-2) , · , , ', ; · , · , ". '. ...."~'...i A GO 8 52 ! 53,. , , , , : 49. 50. Conservation File No. 32 (Conrad) ~',ll~e Ground Shoals "No-Flare~' Hearing This Coxzmittae by adoption of its P~uie 2159 in response (to waste definitions) to the aforementioned: and as contemplated by the statutory provision~ recognizes the use of gas to provide reservoir energy for the production of oil as a beneficial use. (53-12) The "~ ~o operators as a whole realize the efficient recovery of the maximum amount of hydrocarbons from a reservoir is necessary as well as desirable. (53-15) STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that...s..h..e.. ....... is the...:l_eg~']'..c.~...-~ ..... of the Anchorage News, a daily news- paper. That said newspaper has been approved ss ~ 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 .leg~l--notice--~7-2 as it was pu5'lished in regular issues (and not in supplemental form) of said newspaper for. a period of .... o:n~ ........ insertions, commencing on the ...2..2[~.d....d~y of ....D..e..g.~"m'~.e...r ....... ,'19.6.?., and ending on the..2.2n& ....... day of of .Dacemhe~ ............. , 19.~.7..., both dates inclusive, and that such newspaper was regularly distributed to its sbbscribers dur- ing all of sa.id period. That the full amount of the fee charged for the foregoing publication is the sum of $ '10o00 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. / ....") ~. ..... ~.,'t~c~.....,.x ~ Subscribed~ a.n~! sworn to before me this..:~ ...... day o~ ...... ~ ........, ~,~ " ~::'~ .;.~ .L ................. : ...... ..-. ....... ,:. ..... X.~- Not~ Public in and for, the State of Alaska, Third Division, ' "' A~horage, ALaska MY CO~I~ION EXPIRES ................................................. NOTICE oF PUBLIC HEARING STA. Ti~ OF ALASKAZ ; , , NATURAL RF, SO~tCES ~ x.,DiV~SH.)N OF; u. Alaska Oil and 'Ga~ , Co,nservation Committee ~e: Beneiicial Use of '"Gas in the Middle Ground Shoa'~ Field Conservation File No; 32 The Alaska Oil and,.,G,,as Conscr- ~;tiio n Committee heix,Sy serves notice~ that the public hearing on the ben. eficial usc 0f .gas.in the Middlo Ground Shoal 5~:~elr., which Was first convencd off"'Nov >tuber (I, '19{~6, and cc,nthmed, for twelve In56]t'hs' and [urthcr Continued on :~t~ct0ber 16 ]967 will be"l'econvened ;~;;'r 'January 16,' 1963, a,~. 9:30 a.ln. ,~i],{" the City Counci[ Chambers of ~ the g. J'. Loussae .'Library, Fi~th · .. Avenue and. F Street ~Aiibhorage, · : / Thomas '.R. ~arSl;alI, Executive Alaska Oit and" Gas Conser- vat,on Committee 3001 Porcupine l~,ive Anchorage, Alask:i 99504 .. Ptlblish: 'December 22,'5.b67. ' .IL~.gal Notice No. 727'' RE'CEIVED 2 1%/ DIVI$10N OF MINES & MINERALS. ANCHORAGE A.GO 8.52155 NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Re: Beneficial Use of Gas in the Middle Ground Shoal Field Conservation File #32 The Alaska Oil and Gas Conservation Committee hereby serves notice that the public hearing on the beneficial use of gas in'the Middle Ground Shoal Field, which was first convened on November 1, 1966, and continued for ~twelve months and further continued on October 16, 1967, will be reconvened on January.16,'1968, at 9:30 a.m. in the City Council Chambers of the Z. J. Loussac Library, Fifth Avenue an~ F Street,, Anchorage, Alaska. Thomas R. Marshall, Jr. Executive Secretary ,, Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Publish December 22, 1967 ,,,,' AGO 1352156 ,, AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and.says that..:?.:..%f ...... ~r~.ncipal clerk is the ...... i .......................... of 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 ~,eq ~..1...~.Q.t.J,.C~ as it was published in regular issues (and not in supplemental form) of said newspaper for a period of ......... ~-. ....insertions, commencing on the .2..]: .... day of ...0..c;.~..r).!:_>.~.~.z/. ,19 .~} C, a nd ending on the .... ~.]-. ......... day of of 6%C tO]r')O r , 19..'C?.6.._, both dates inclusive, and that such new, spaper 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 $_ ?- O 0 which amount has been paid in full at the rate of $1.50 per square. Minimum charge $7.50. One in- sertion legals $2:00 per square, ,. Subscri:be~ add s~,~orn to before me this 19 ~' © Notary Public in and for the State of Alaska, Third Division, Ar~chorage, Alaska N[Y CON~ISSION EXPIRES 0 c -Lc o},.; c ~ _-t. 6, 7 q NOTICE 'OF pUBLtC HEARING STATIJ OF ALASKA DEPARTMENT OF N~TU~I. AL RESOURCES DIVISION OF ~ AND MINERALS Maska Oil and G~ Conservation~ Committee S001 Porcupine Drive Anchorage, Alaska The Al%skl~ Oil and Gas Con- servatton Committee will hold a hearing pursuant to Section 2012I of the Alaska Oil and Gas Con-I servation Regulations to consider the Issuance of an order requirlngJ the beneflc~l use o£ gas pr°duced~ a,a the result of crude .oil pro,| ducing operattm~s at the, Middle', 'Ground Shoal Oil Field. The he~r-. lng will be held at the above ad-.. dreas on November 1, 1966 'at 9:30I a.m, at which protestants and others rally be heard. ' Thomaa R. Marsha[l~'. '~xecutive Secre[ar~ . ' Alaska' Off and Gas Conaervation ,Committee'. ' ~O1 Porcupine Drive Anehorage, Alaska '!Aneh0rage Daily Newa iPubllsh' October at, · RECFIV .D OCT X,,s 196 DIVISION OF MINES & MINEJJA,~ ANCHORAGE AGO 852].5'1' REC E!¥ [ :',~ ,I',IOV 9, 1966 O{VISION O1: MINES & MINE~., t~,i,.,tCHORAGE NOT iCE OF PUBL lC HEAR I NG STATE OF ALASKA DEPAR~ENT OF NATURAL RESOURCES DIVISION OF' HINES AND MINE~LS Alaska 0II and Gas Cons~rvetton C~mmittee 3001 Porcupl ne Dri ye A~chorage, A i aska The Alaska. Oil .and Gas Conserw~flon Co,m~tttee wlll hold a heartnFj use of gas ,produced as the result of crude o it producing ope~t'ions et th~ Hl~dle Ground ~oal 01t Field, The hearl~9 wilt ~e =hetd at f.he above add,ss o~'~ November :I, 1966 et 9:30 a.m. et which protest~nts and others may be .heard. Thomas R. Marshal I ~ Jr, Execut I ye Secret~ry Alaska Oi I and Gas Conservettom 300 t Porcup i ne Dr t ve Anchorage, AleSka 99504, Pub i I sh October ~, 1966 AGO 852159 October 16, 1967 NOTICE STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Re: Beneficial use of gas in the Middle Ground Shoal Field Conservation File #32 The Alaska Oil and Gas Conservation Committee hereby serves notice that the public hearing on the beneficial use of gas in the Middle Grou~ Shoal Field, which convened on November 1, 1966, is further contined and will be reconvened on January 16, 1968 at 9:30 a.m. in the City Council Chambers of the Z. J. Loussac Library, 5th Ave. and F Street, Anchorage, Alaska. Public notice will be given at least ten daYs prior to the date of the January hearing. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 AGO 852160 Mr. A. E. Piper Page Two October 9, 1967 Pan American respectfully requests continuance of this case until after January 1, 1968. Perhaps a December meeting could be held, however, we are not sure that our analysis will be complete by that time. We will again contact your office in November and firm up a suitable date. We feel the continuance is justified on the basis of pro- gress made since the last hearing. This progress is exemplified by the data that has been obtained, the studies that are being conducted, the equipment that has been installed to take the gas to shore, and the interest of all operators in the CoOk Inlet to utilize their collective resources to dispose of the produced solution gas. cc: A.E. Piper-Denver CHAKACHAT A PLATFOR MS BAHER AN D DI LLO N MID LE 6ROUND SHOAL FIELD 8 i 6 4 66, 10 67 1'9 68 19 69 1970 1971 1972 19.73 19'74 10 75 19 7~ i077 1979, 19 80 19 ~1 1982 19 85 19 ~ 19 85 YEAR 19 86 1-q 87 EXHIBIT NO lO 88 19J o ~ PROJECT 1. Installation of pipeline to shore and platform loop 2. 440 HP Compressor for gas lift, "A" 3. Conversion of steam generator, "A" 4. 1100 tiP Compressor for gas lift, "A" · IlcII 5 660 HP Compressor for gas lift, 6. Conversion of Steam Generator, "C" 7. Conversion of A.C. Generators from Diesel to gas, "A'~ 8. Conversion of A.C. Generators from diesel to gas, "C" 9. Install 1100 HP compressor, "A" 10. Install 1i00 tiP compressor, "C" 11. Gas Dehydration equip., "C" 12. Gas Dehydration equip., "A" 13. Gas turbines for "A" waterflood 14. Water Deaereation towers On "A" 15. Gas turbines for "C" waterflood 16. Water Deaeration towers on "C" 17. Gas transport to onshore for fuel 18. Gas sales AGO 852163 __ MIDDLE .GROUND SHOAL GAS CONSUMPTION STATUS COMPLETE IN PROGREss PLANNING COF[PLETION DATE X Sept. 67 Feb. 67 Sept. 67 Jan. 68 Jan. 68 Dec. 67 X May 68 June 68 March 68 June 68 June 68 June 68 Oct. 68 Oct. 68 69 69 late 68 X / TOTAL GAS USAGE MCF/D COST -- $1,400,000 90 250,000 100 10,000 220 600,000 120 350,000 250 5,000 175 40,000 200 50,000 220 600,000 220 600,000 -- 50,000 __ 50,000.~-~ 660 200,000 120 20,000 660 200,000 120 20,000 400 Other equip. shown above ?? 3,555 MCF/D $4,445,000 +I0 GAS PRODUCTION & USAGE TOTAL PRODUCTION NET CAS AVAILABLE FROM OR NECESSARY FOR OPERATION USAGE 50%0F TOTAL PRODUCTION i ~""~-- LEASE FUEL [ 33 % OF~ 100 % OF -,.5 TOTAL PRODUCTION TOTAL PRODUCTION 1965 66 67 68 69 70 71 72 73 74 75 76 77 7S 79 ~,0 S! ~2 S3 ~4 Ss 86 ~,7 s~, s9 90 I CHAKACHATNA PLATFORMS BAKER AND DILLON MIDDLE GROUND SHOAL FIELD EXHIBIT NO. ~ f::~,,;?:~,-,~'~ EQUIPMENT CONVERTED TO GAS UTILIZATION I- AC POWER GENERATOR I- DC POWER GENERATOR I- GAS LIFT COMPRESSOR I - STEAM GENERATOR ADDITIONAL EOUIPMENT FOR GAS UTILIZATION 3 - AC POWER GENERATORS 3 - DC POWER GENERATORS 8 - KOBE TRIPLEX ENGINES I- STEAM GENERATOR ~, - TURBINE WATERFLOOD UNITS 'A'FOLLOWING cOMPLETION OF DRILLING OPERATIONS FUEL REOUIREMENTS WILL REDUCE TO APPROXIMATELY 3600 MCFD MCFD USED 161 228 228 185 '802 ,~83 684 232 252 ICJ20 · 3571 TOTAL d, 373 FORM '470 2-57 .i RECEIVE PAN AMEmCAN PETROLEUM COI POIL I 0 P. (9. ~ox 779 Anchorage, Alaska 99501 O:tober 9, 1967 D DIVISION OF MINES & MINERALB ANCHOR. AGE File: FKK-1ZT0-986. 511 Re: Mr. Thomas R. Marshall, Jr. ]Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Hearing Date - Cook Inlet Gas Disposition Cook Inlet, Alaska Dear Sir: This refers to your recent informal inquiry for a suitable hearing date on the matter of disposition of solution gas produced in the Middle Ground Shoal field. Since the November 1, 1966 hearing on gas flaring in the Middle Ground Shoal field, good progress has been made in delineating the field and evaluating the producing characteristics of the reservoir. As dis- cussed at the hearing, this development was required to make any mean- ingful analysis of gas disposition. Representatives of Pan American Pet- roleum Corporation and Shell Oil Company as operators fdr the Chaka- chatna and SAS groups in the Middle Ground Shoal field 'met Ju~y 13, 1967 to initiate a joint study of feasible methods to beneficially utilize the pro- duced Middle Ground Shoal solution gas. Simultaneously, operators in the Trading Bay area were collectively analyzing the same problem for their respective operations. Since the problem could lend itself to a corn- ' mon solution, a meeting was held on September 8, 1967 with representatives from Union Oil Company, Marathon Oil Company, Mobil Oil Company and the SAS and Chakachatna groups to analyze the possibility of a single com- bined method of handling all solution gas produced from Middle Ground Shoal, Granite Point and Trading Bay oil fields. In order to utilize the solution gas, it may be necessary to construct facilities and possibly additional pipelines. This equipment will require considerable investment. Therefore, reservoir evaluations, gas rate fore- casts and product disposition studies will necessarily need to be compre- hensive and complete prior to formulating conclusions about the best gas disposition methods. Moreover, the magnitude of the problem justifies in- cluding all the known solution gas producing areas in the study to ascertain if a common solution to the problem is practical and feasible. Although these studies have been underway for several months, they are time-consuming with completion not anticipated until late this year. AGO 852 ]. 66 I FORM SA-I B I OOM 9/65 MEMORANDUM TO: F State of Alaska DIVISION OF MINES AArD MINE~RA~$ FROM: 'Thomas R, FAr,shall, Jr. DATE : SUBJECT: October 11, 1966 I believe we should take Conservattoa Co~mi:teeaction t~wards a ":no f/aee' order at Mtd.d~e Ground Shoal oil field. We will soon be los:inS somethiu§ I h~e p~,pared the e~,losed pub~cati~ order. I sub&est a f~lll Oil a~d Gas Conse~vatio~ Com~.lttee, mae,fl~ao~ the V~Am Co theState. October 13 & !4 o~rOetober 17 & 18 are sui~ble da~es for this office. Plebe ~Ortify ~ if a~when you aha Chuck can ~e,~ togethe~ with ~.
