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CO 057
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) r~'" Maps: Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: ROBIN~ '111 illin" Scanning Preparation BY; ROBIN TOTAL PAGES Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: j ~ 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 COMPLE il--A7 THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES-~'--- General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES A?~ MINEP~kLS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: THE APPLICATION OF UNION OIL COMPANY ) OF CALIFORNIA for an Order prescribing ) Field Rules for the development of the ) productive intervals within a prescribed ) area of the Trading Bay Field. ) Conservation Order #57 February 23, 1968 IT APPEARING T}iAT: 1. The Union Oil Company of California submitted an application dated January 9, 1968, requesting an order prescribing certain field rules in the Trading Bay Field. 2. Notice of a 'public hearing on the ~tter was published in the Anchorage Daily News on January 12, 1968. 3. A waiver of persona], service was received from each of the affected parties. 4. A le'tter dated January 26, 1968, with an attached letter dated January 16, 1968, from the applicant was delivered by hand on January 26, 1968, and this letter with attachment requested certain changes in the proposed rules and in the definition of the Hemlock Formation. 5. A public hearing was held in the City Council Chsmbers of the Z. J. Loussac Library on January 26, 1968. The letter dated January 26, ].968, with attachment was read and became part of the record. Testimony in support of the application was presented by Union Oil Company of California and there were no protests. AND IT FURTHER APPEalING TI~T the Hemlock Formation exhibits low or impaired permeability due to the presence of numerous faults, variations in lithology, lensing of conglomerate beds within the formation and the occasional occurrence of solid bitumen in the pore space. There are numerous separate pools not in communication with each other, but the erratic and unpredictable presence of separate pools makes it impractical to isolate each pool for development and administrative purposes. CONSERVATION ORDER #57 Page 2 February 23, 1968 AND IT FURTHER APPEARING Tt~h~T the flow rates from the Hemlock Pools are unpredictable and, in fact, many wells have had uneconomic flow rates. AND IT FURTHER APPEARING THAT 40-acre spacing in. the Hemlock Pool is necessary to develop the oil production not presently attainable under the present 80-acre spacing order. AND IT FURTHER APPEARING THAT the Middle Kenai Formation is made up of many reservoir sands, some of which are capable of producing oil and some are capable of producing gas. AND IT FURTHER APPEARING TI-MT the sands within the Middle Kenai Formation are very erratic due to pinching-out, lensing, silting or shaling-out, truncation and buttressing at regional unconformities and, as reservoirs, have limited and restric'ted areas of accumulation due to faulting. The presence of many pools does not make it feasible to isolate and define each separate pool for operational or administrative purposes. A}~ iT FURTHER APPEalING Ti~.T 40-acre spacing in 'the pools of the Middle Kenai Formation is necessary to effectively drain the many reservoir sands. AND IT FURTHER APPEARING Tt.~T 40-acre spacing will allow more efficient planning and operation of a secondary recovery program when such is started. 'NOW, THEREFORE, IT IS ORDERED that the following field rules shall apply to the Trading Bay Field and shall supersede all rules previously approved for this field. Rule 1. Area where Field. R.u.~.....es are applicab.!.e ~ The area described as follows will be affected by these rules: T9N - R13W~ SM Section 3: Section 4: Section 5: Section 8: Section 9: NW¼, ~W¼SW¼ E~, SW¼, E~NW¼, SW!~NW~ Et.;.S Et~, SW¼SE¼ NE¼ T10N - R13W, SM Section 33: Section 34: E~S E!g, SW~r~ S E¼ S~¼ CONSERVATION ORDER #57 Page 3 February 23, 1968 Rule 2. Definition of pools (a) The Hemlock Pool is defined as the intervals which correlate with the interval 5380' to 5720' in the Union Oil Company of California #1-A Trading Bay well. (b) The Middle Kenai Formation is defined as the sedimentary section above the Hemlock Formation. Each sand in the Middle Kenai Formation in which an oil well may be completed will be an oil pool and each oil pool will be defined individually and all oil pools will be defined collectively as the ~.{iddle Kenai Oil Pools. Each sand in the Middle Kenai Formation in which a gas well may be completed will be a gas pool and each gas pool will be defined individually and all gas pools will be defined collectively as the Middle Kenai Gas Pools. Rule 3. C omming~l~ing Commingling in the borehole of the Middle Kenai Oil Pool~ is hereby permitted. Co~mningling in the borehole of the Middle Kenai Gas Pools is hereby permitted. Commingling in ~the well bore of ?~iddle Kenai Oil Pools and Middle Kenai Gas Pools is not permitted. Commingling of Middle Kenai Oil or Gas Pools with the ttemlock Pool is not permitted. Rule 4. Spacing acrea~i~ _ (a) Hemlock Pool: Not more than four (4) completed oil wells shall be allowed in the HemloCk Pool on any governmental quarter section. (b) ~i[iddle Kenai Pools: Not more than four (4) completed oil wells shall be allowed in the Middle Kenai Oil Pools on any governmental quarter section and not more than one (1) completed gas well. shall be allowed in the Middle Kenai Gas Pools on any governmental quarter section. Rule 5~ ,~ a~_~ng fo0tage (a) Oil or gas wells may be completed closer than 500 feet to any property line of a lease except that no oil well shall be completed closer than 500 feet from a lease line where ownership changes and no gas well shall be completed closer than 1000 feet from a lease line where ownership changes. (b) No oil well in the Hemlock Pool shall be completed closer than 660 feet to any other oil well in the !Iemlock Poolo CONSERVATION ORDER #57 Page 4 February 23, 1968 (c) No oil well in the Middle Kenai Pools shall be completed closer than 660 feet to any other oil well in the i~iddle Kenai Pools and no gas well in the Middle Iienai Pools shall be completed closer than 1000 feet to any other gas well in the l~iddle Kenai Pools. Rule 6. Casing and cementing requirements (a) Surface casing will be landed at approximately 1000 feet to protect known fresh water aquifers and it will be cemented with a sufficient volume to circulate cement to the sea floor. Casing and control equipment will be hydrostatically tested to 1000 pounds per square inch before drilling the shoe. (b) Production casing will be landed at total depth and cemented with a sufficient volume to place cement above known productive sand intervals. The use of multi-stage cementing procedures will be permitted. Alternatively, a casing string may be adequately cemented at an intermediate point and a liner landed at total depth and cemented; sufficient volumes being used to place cement above known productive sand intervals~ If a liner is run, sufficient cement will be used to fill the annular space behind the liner to 100 feet above the casing shoe or the top of the liner shall be squeezed with sufficient cement to provide at least 100 feet of cement between the liner and casing annulus. Casing and well head equipment will.be hydrostatically tested to 1500 pounds per square inch. Rule 7. Testing.except. ion to Section 2159 At the request of an operator, administrative approval of a testing period may be granted to permit existing wells to produce as exceptions to Section 2159 of the Oil and Gas Conservation Regulations. Such testing shall not exceed six (6) months for any well. CONSERVATION ORDER #57 Page 5 February 23, 1968 DONE at Anchorage, College, and Juneau, Alaska, and dated February 23, 1968 T' R. Xfarshall, Jr , Exe Secretary Alaska Oil and Gas Conservation Committee Concurrence: ska Oil and Gas Conservation Committee Dale Wallington, Member f Alaska ()il and Gas Conservation Committee 27~' F"-Y':".'Z/' ,,.~-~-"~ ;.?~.'~ ~,,, ,, ~ :~ ,, ~ . ]~arl ~. VonderA'he, Member Alaska Oil and Gas Conservation Committee Earry W. Kugl~er, Member / Alaska Oil and Gas Conservation Committee STEVENS AN D HOLLAN D ATTORNEYS AND COUNSELLORS AT LAW 506 SIXTH AVENUE TELEPHONE 272-~47[ P. O. BOX 2OE~S AREA CODE 907 ANCHORAGE, ALASKA ~9501 TED STEVENS RUSSeL HOLLAND January 26, 1968 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re' APPLICATION FOR AiN ORDER PRESCRIBING FIELD RULES FOR THE DEVELOPMENT OF THE PRODUCTIVE INTERVALS WITHIN THE TRADING BAY FIELD UPPER COOK INLET, ALASKA, Dear Tom: Upon my return to Anchorage for the hearing regarding 'the 'i proposed rules for the Trading Bay Field, I find that I failed to deliver to you my letter of January 16, which is attached. That letter req'uested yo'ur Committee to consider a change in the proposed rule #4 of the application for field rules for the Trading Bay Field. In addition to the changes noted in the attached letter, we shall also desire to make a change in proposed rule #2, in the next to the last sentence of that proposed rule. The next to the last senience should read: "The Hemlock Formation includes all intervals which correlate with the interval 5380' to 5720' in the Union Oil Company of California #1-A Trading Bay well." At the hearing we shall de'liver to you a rev:ised copy of the application of January 9, to include the requested changes. tls/bc 'Theodore F, Stevens JAN STEVENS AN D HOLLAN D ATTORNEYS AND COUNSELLORS AT LAW 506 SIXTH AVENUE TELEPHONE 272-4471 P. O. BOX 2085 AREA CODE 90? ANCHORAGE, ALASKA .9950! TED STEVENS H. RUSSEL HOLLAND January 16, 1968 Mr. Thomas R. Marshall, Jr. Executive Sec retary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska RECEIVEE) JAN DI¥1$1ON OF MINES & MINERAI~ ANCHOItAGE Re: AP. PLICATION FOR AN ORDER 'PRESCRIBING FIELD RULES FOR THE DEVELOPMENT OF THE PR OD UC TIME INTERMA LS WITHIN THE TRADING BAY FIELD UPPER COOK INLET, AL.ASKA Dear Mr. Marshall: In reviewing the application of January 9, 1968 presented to you by the Union Oil Company of California, we have concluded that we should request an amendment to the proposed Rule #4 as set forth in paragraph 4 of the application. We request that the proposed Rule #4 be changed to read as follows: Rule 4: Spacing Foota_..ge (a) Oil wells may be completed closer than 500 feet to any property line of the lease except that no well shall be completed Closer than 500 feet from a lease line where ownership change s. (b) No oil well shall be completed closer than 660 feet to any well prod'ucing oil from the Hemlock Formation, and no , :oil'well shall be completed closer than 660 feet to any 'welt producing oil from the same individual sands or prod~ucing intervals in the Middle Kenai Formation. ,, ,, (c) No .ga.s vSell '~hall be completed closer than 1000 feet to ''any gas well producing from the same formation or completion interval in the Trading Bay Fi'eld. Law Offices of STEVENS AND HOLLAND Thomas R. Marshall, Jr. Date January 16, 1968 Page I would appreciate your courtesy if you would notify the Committee of this requested change. Since rely, tfs/bc 1 i0 11 12 14 15 16 17 18 19 2O 21 23 25 ~, ,..~u,.~ ~zIDiv..of Mines &Min.. ~o~ P~,~. I Inc. wire ~e ~t~nCJir~ ~ i~ m,~¥ be repro~uce~ for inter-comps, ny u~ ~.1¥. 1'~ 825 WEST EIGHTH AVENUE -- SUITE 5 277-47~3 ANCHORAGE, ALASKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 " ""'": '::~ :", E l i-{2 ~$ ~ . ~,,,,, ~.:~,. :, c~..~ w,-- .~.,-- _ - ........ ~_ ..... ._z ,"' i -." ,': r-,, ,,' ?~: -~ .c r', -- an ap?.!~-ca:zzmn o):,' unzon 'o'-;~ .'"o.-.-,.r,,:~::-:,y of ~a ...... ,_. .... ~...v._... ...... inS ';-he Tradf:-,;'TM ,' cov~ .... ~- a ~ay T-;'-~ .,=~ ..-:'=~:o ~""z.ne or_o',~ o'i n.a~, .... a. po'~ icatiom, ~ _ ~:~as ° 7, ,¢-. ~ o -.-:.,, % 'r .4' ~ " - recezved on ,3a~zua~y 9~ i968 in "-'~ ~ '~' .... ""~ - ' '~ bee iv d '.-rom ~z± az~_~cuee,-'~z,-~,~ors. A l..--- 'ater~ was received '"'-'~',~:is mor'ains- from ::-!:~e~,. counsel ~or 'the applicant proposing some signi~i, can2 chan,3,~,,:~s ._~'~'-~ t ,=pp~zcation l'he Conm~.ittee ~,_.as ae,azc,.~e that the oropos,~a cnanaces "','-":" still '" ...."' '~:'- " '"' ~,,'{',',.~ " but since they do af";:act the ~o! them at ';-'- '~ _ _n~ conclusion o-f- our in:hroductory remar<s. aitting fo'~ the Cor~x~.ittee '- ' sl~al! l~m .... ',~ ,~5 ,,,::~ason an advisor to Com~nittee: ... V'. Giibreth~ an ~,x'..,::'o - · . ...... v..~oo= 'to . Comm!t'dee Bob .... '~ ~¢.- ~ ~ ' harry ¥..{ug~' ~ Carl. Vonce," Dale Wellington: Committee members. l:i! proceed to read in 'the pertinent parts ube ~etter 'ea'kzng additio,as to ~-'f-~..-- p '¢ ~; ~..,. a.. p_~c~:.:t'~on, zu '~ addressed to 'me~ Thomas R. Marshall Jr, ]Executive Secretary Alas'kc 0 {~'i a~u'"" ;~ Gas uo~e~v~;tion "' ~*00l Porcu?ine Dr~ve .c~.ncho ..... ,*.-.~ ,~l.~-o ' ~" ' ....... ~ ' " 1'968 (l{r. Marshall proceeds 'to _;"e,:~d .,::.o let~-e'-~ ,_ da~a January 2LCL%ciLeG to bzz~ ~ransc_ ~. ./ e Uom. mzt'~ee ~f!erf,'.be~s ~zf:V~ ~,~ wDiv. of Mines &Min. , ,o~ ~, .... ~ with ~ ~nti~i~ ~t It ~y ~ ~r~ for lnt~m~ny u~ ~fy. 825 WEST EIGHTH AVENUE -- SUI%'~ 5 277.4713 ANCHORAGE,. ALASKA 3 I0 I1 ' 12 18 14 15 16 17 18 19 2O 21 22 28 24 25 'CnAS morn{r';S makes -L.n~ ...... ' ............... ~_'~-, is ~ ::: .... " - ....... ~n~s = ~er in'to .'-7-~ ...... ~ne Cn,%m~:;-tee ~,.ie w[~ enter "-""'~- ':e .... '- ~,~ ~u,zu.~c as an ,u 'no fu ~ ~ -~' ...... '~"~ and would ask the appt ~'~- ~ _~c.~.~zt to present h;kS case. oz~v~No' Mr ~'~--,-~ rm.:,~ 'if am o'ooearin~ as . o ~ank you~ . ~,~ .......... _ the attorney o.F record for U~ion .......uzz Company o'F Ca~i'F"'rnia 2~esented the appLLca'~ion on ':-~'h~",, o.~ Lts Lff aha thon Oil Company (Mr. '~ . ~tevens proceeds to read an Lnt~oaucuLon ehich is attached Co ~' " . o ', ' ,;~n,$ a~so rea~s 't~le aoolLca- st-~tu'Ce Exhibz'c A o.~ our tasuimony fior~xnzbi'c A of the apDA/ca- tion that 'w~s orzgznaliy suomzcte~ ~:~" o~igin,al tbs..= ';~T, ~.,~,.- ,.,, t'h,'= irst exhibit '~. une s'tai~ "-~ '-~ an ' and i'~- ~s upda'ced ~t~a~ s be S~ven to you: _ _ . .y.~ ..,~.. ,.~ ~ .' . ~ ' ~ rO tlc ~ . 0/,znen pit. Stevens z~nzsn~c~ _~,.~_.~ng. the iht d- 'rich Mr ~ [:i ~$:t wszs sworLt~ /lis <'.~ti~il-F~ -o"-~,"),~e been .accep'ted~ and~o~uce~c:~ to ra,:.~L~ une C. eolo mony att,ached 20 th~s transcript.} {Upon ~ne concLusLon o2 w;~- z,asu ; ....... "' Mr "- "-"'a-:: r e and proc.':aded $~aR r ~ '~t~ was SWOrkl: T e s 't imo n y; . read EnDinee-'' - ~ . z zng T e s t ires r'~ y ) ~ ~, ~ ~v,,.~ ~,Div.. of Mines &Min. WEST EIGHTH AVENUE -- SUI'fE 277-~713 ANCHORAGe, ALASKA 10 ii 12 13 14 15' i7 18 19 2O 22 24 25 'c. ut ,a~a" colored re-fferances_ that h.n'va 'been made ~ ..... ~ '"" ....... '~" "~ ' ~ have j~sL ore "~ . ,,n~biZ C. Wa wi'~l save our ~-ecn.t~c,:~ questzons 'an~ scale on E-~ '~' _ . '~ ,- ~ : for a-~ter a t0-minute recess Du~ 'be": ~ ~.ore we enter the exhibits ' ~" i would appreciate 'having an answer to ~nto the formal hearing: that particular question. P~,oen"~:~'~'":;'w~c'~v.~.,,~ The exh~bf_~ -- the_ major exn~oz'6 znau s before you is n~a inch is worth 20'~'' fee~ on the vertical ~ correlation_ o~ the z'~ive holes so 6n,=~ it s a vertical co~ra'~ , pff( ,.~.~,.:'.;,c,'~:~?,-~--~ . Yes. :':'- about the horizontal ~XP~LO L ~ 09 ~Vi"~A . 'Vi~ 'PeT:, ,~,, '~ -r . v .... ,: ..... iL:.~,~,o~z,,?,~ ~ see. ~ Ve ~lveR us sor&a o~: the scale on your s~,¢ezch :;n ''~-''' ..... ~ ' ~:n o,;-'he,' ''~ aliz as ~r as the . . words: this :~s more or less zee ad f~ horizontal -- ~ ~ ~ ~;'~ j~ ~ ,. ---m/Div. Of Mines &Min.. f,om ~,~,~. ur, d~rl~cllng t~.~t It may ~ ropro,:lu<:~1 for In?el-company u~ only. 82S WEST EIGHTH AVENUE -- SUITE 5 277-~713 ANCHORAGE. ALASKA i0 11 12 12 14 15 16 17 18 19 2O 21 22 22 24 25 '- 4 ,- ..... :_ '; .... ,,:_ ~ z q .... p~lsz.~c and .... mamoers o 'oRe .... ' ...... " " 2eS. (At 3'00 p.m. proceed[tings ~.,~ere recessed until 3~i0 p.m.) u_o,:o Erom 2ne Oomm~ttee'o~ -, ,.,_ -~ ., Q (By Mr. ~ia. rshall) Ed~ your mxn~i'C O shows a cruncatfon Lnsofar as 'the exh/b{t covers disp~,;~y,,~ Is there ::,~, ef"::a..~t o-F Crunc~-fon on .any pro duc~n,S s,a::a~. Your exhibit doss not. sno%~ ~,:~ s~a '~runca :t~'~r,.~,has actually rruncaceci_ A Tom it may be ,a lizzie zip.atone pat~-ern in the o~,-,/~ that f ' ' . .... .... ~..~ <,.~e ee'i are po'cant{~,!i5 . uncon~ormity~ ~:e ~tum. six or eiSi'it sands there 2!"~s.'~ are potentially produc'dive. '" ' · ,~ t ....~ '~ :~ O,~ ~ _ Zney have p~oau~ea o:Lt ~,. "-.~s'.~s fin '~hat we~'~ and ~.~e be .- ....... ' be .... ii:'ve u~,~131 to trunca~eo EO ~:~ north aoo.~o,.~cz: '~o "-i ~ '~ ' ~ ~n uh~ ,::.:,,-e log ,as sho~,~n there ~e eon , ~, ,, ~,r,~ eddy. of Mines &Min.. ~o~ ~...~,~. [ WEST EIGHTH AVENUE -- SUITE 277-/~7 ~3 ANCHORAGE, AkASKA 10 I1 lg 12 14 15 17 18 19 2O 21 22 24 25 ~:,~-at sand = ....... '~' .... ~,.,,-way down to tke Q ~'~=~ tzmnca ion ........ 7 ~ ~ ~ ' ~zst ibution oz some of tke potential -- of -~1 volts as they're ;~, A Yes. Yes. q ~d~ ~ ' do you know oE~ any other'_ es~~-~l~~sL~ea z~ze~ proauczng ~ietd in the Cook ~nlet where a ~zunc~zo~ in the reset voit occurs? A We have not experienced/in the McArehur River ~iald ~ ' ~ O~S yet. Granite ?o~nt~ cez'tainly we have not seen any of sands by truncation ':-~,~,:~,~. We have so~,:~e,~ pinchouts., T ~m not familiar ~n~'>~ ~th lviiddle Gzonna m~=!. There is a poasibil'~ cn~ may be some there, being a highly folded strUcture~ but to be specific -~ well~ Renal -- again ~$here we ~re quite familiar~ Renal Gas Field is a relatively_ . simple, unzauzted s~ +', '-e. ~o 'we do see quzce a bit of iens~,~ o~ sands due to environment oz deposztion. But thzs~zs our ~rst -- my first knowledge on it. Q zhan~ you. We may say then the~ to your knowledge thzs '~ ~ fading ia!d? is a situation unique to uh= T Bay F A Yes T would say -' ~L~i~S:~=~ z~a~c you. We ~'~ i ante .... ~ rta!n o=n== questions of a geological nature. Harry ..,~,~..~,~o~xuS=~=; , ~, ,. ~,-~a~ ~iDiv. of Mines &Min. 825 WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANGHORAGW~0 ALASKA !0 I! 12 13 14 15 18 17 18 19 2O 21 22 25 A A . - J~- . ~S w ..... azzz~rence water tables ~?, ~~e~ are o_ '~ne ~,~ '~'~.~.< zorma=ion, i wonder mz you ~=~-~,,~', ~ znaLcate some oz =!~OS e iOr US ? Yes~ Harry. ~n =n= -- !et s see~ wnzcn exnzb might be bast? ~s that the D up there? When wa cross that north- west 2 fau!t~ for example -- 3'~m~ if you will show the northwest 2 fault again? Now' this intersects the A-2 well bore~ the A-8 well bore electric log in the A-IO;and we anticipate that the although we have not seen an electric log yet -- this ~e=ation ~nzs is a relatively Io~ mud log cot~- ~ ........ -,- ' a~gz='--~ ~f ~ may say 55° ~'s_ a !ow anSze" ~ fault~ and these well zau~t on the -- from the uppea s Lde~ bores approach that ~ ~ ' and upon penetrating the f~au~t~ sands f~om about the 4407 ' '~ ~ . do~ a:e ali saau:a~ed aouuh o~ ahat la~L~ the ~orak ol ~aa !a~L~ La ~ha A~5~ L~ the ~-A "' ~ _ ~ ch~se saree sands are wet~ so here's a very good example of ' '~'- zauz6 control =~e M~dd!e Kena~ sands. ~nat is the subsur=~ce- -- do you have a subsurface ~auum '~-, .... ~ water table? a",'~t icular s~n=s We have not tested any water in those p = Harry. zne A-10 tog in the sands right above the Hemlock appear to be .~:~atting on the wettish side as if we ~ere approaching the water t~mt,= ~'" - ..... - ' ~ ~h~= ~gould ~e - let~ see 825 WEST EIGHTH AVENUE -- SUITE S ANCHORAGE, ALASKA ,,!/ 1 2 3 4 5 6 7 I~ A 11 !2 13 14 15 17 i9 2O 21 22 23 24 25 if you can ze~'~' there J'~.~,. is t:~e shlbsea~ ~ ~ . . :~ ca .... 6050 6050 ...... ~ ~ be perhaps around ~ '~ - ....~ ~ .~'~ ' .~!es~ ~o~n~ -o000. ~_ nnese nav~ not been subs~an- _~a by zas'~zng, ira's ~"us~ ~ log calculations. ~.ov,,-~=. side wadis ..... taken ~n t:~e lower resistivity p=~o~ ox= those logs ware oilstainad~ so it's euest~,~~0~'=. ~.=~ We ,-~-,'~- be jus'c app~-o~chi~g the water table. Did you not'ce any ..~,=r~,~ ~ ...... ~_ noz=h of the -- what you re- ferred to as the northwest I fault? The nornnw~st 1 is the A-9 well '~ zauzn cut by . Tnooe sands were pretty much wet ..... ~- . no~=~ of that fault We don~t nave an example of that=~o,~o here. However it's very si~i]a~-. _ to the A-I over there~ . asz~e from ~h= repea==c section Wel!~ 7~d_ say actually it's s'hown on that o~~ic~,~"~ .... dia- ~'~' $Oiia wei~ o=o- ..... ~a A-9 is '~-~.==,~= faruhest nozun, well there~ ' We repeated qu'[te_ a bit oz section zn =~ere. We got north of that fault and the sands 'werew==='~ above ~nme~" Hemlock similar to the A~! ~7~ ' = · welz there. %ohich has a couple o= wet sands right inm~ediately above the Hemlock. (By !~r. F[arshall) l~d like to ask you~ do you know of any ....... . tnze= where ~nere is any more otn== field in the Cook" ~ "-. complexity as the =esuit of ~auit~ng nnan the T=ading Say No~ ~ would say this would this w~=d~n?g -- _~,-~, ~y F~,~','~=~=~ is probably t>,e most ,~o~-~,~- s, tzucture d~ ~ , ~, ~ o~a~ .~Div.. of Mines &Min.. ~,om ~o~,~. 277-4713 ANCHORAGE. ALASKA - 9 - 8 I0 11 12 13 14 15 16 17 18 Ig 2O 21 22 23 24 25 · ~ CO0!C -- -- ~u, t, ,~ =_..o kere couoiea~ with the_ s t r ~ "-: ~"~apnzc=~za_ v~'~- za ~ ion~_ pa~,;~ps a ~'~-t!e mo'za . ~* ~' would say ~.a~ z~zn~ Bay s',.-zuctuze~ as fez as zating, One. . I~:~X~-:~.~L- T~ank yo~-: Are ,o.~'~,~y fu:,:-~ c~tions of a geological natu=e i~om the Co?~:a~'atee? O. i~. Gi!b~e'cn! (By idr. Gzzbzeth) Ed, you n.~d= a statement curi,x~,, o youz testimony that v bel-~ ........ :~ ~ -- _ ~vo mt was you~ that said that we~zs d o~ acre $ m=n.~=~e the numbe oi azy holes. CouZd you expl=z~ ~L=: ~. !~tt= A An ex~p!e of that would be the A-5: which was a ~'~= where we did the sou~ast flank: ~ei'l. down on ~h= f!ank~ catch a wet well. if lWe dian:t l ave to step out in !origen' ,, ze~chouts~ w~ could d~!~ on, so-called ~nz~id dziiiLng, we could move out and ~stab! z~, a water nable per~:~aos,.. ~ by hitting it pa~tiatly~, a well~a~~-~:,'~ than zzna~ ' a wall_ that's completely below the water table. We feel that the closer spaczng will a~iow us to step o,u~ to nz~e wate~~ table rather than plung~ ~" zn~ into it with the wider spacing~ !n o~ner words~ we're not very ~az away fzom eriiiing all of onz 80-acze Hemlock '~ ~ -- objectives that we have what we feel are left. ~~=~ are about fouz spots on that well on Unton~_ .~s =cz=~g= = =~,~=~ and two of those wel~!s_ are 825 WEST IKIGHTH AVENUF -- SUITe5 277-g713 ANGHORAG~, !0 11 12 13 14 15 16 17 18 19 2O 21 22 24 25 A q A loc ....ion ~'zgnt now So ,',',= ~-~ : ==ss .n~n g0 will ~' ~ ~ ~ ..... soec~n~ ~ ~ '~' ~ a=z~w us to ~e locations and avoid some of these extension tests. Did ~ understand you to sey that since had been issued ~-~'~ =~ '~ ~= i!ve non-co~znerciat Hemlock ~ ~ - have been attempted~_=~-.~"~v_. ~'~ drilling ~' ~ ~)~'e we=~ ~- on our Last and we ara on aha eleventh we!~ so we 'have comaleted f add ~-ional wei!s~ and of '~se five -- !etas sea ire i~ .~;-6 and A-8 are p~oductLve~ an~ 'there 'w~i A 7 and A-10 ~ould be ~:~ ~on~con~merciat ~iemlock at least. ~n other 'words~ out of your_'~ast five Hemlock =nr=e on them have been conuaezc.,zS! after you attempted comp let ion? No. A-6 and Two are .=o.,~-co~ne~czai',=, =~ ~ = .~ '~ "and tv~O Two co~z;:ezciai an~ thze= non-co=~.ercial Okay. And you want too oo', in ,now aha" ~~,~"- ~ ~: ~ more we'~_!s in between 'these in '~',~ , =he Ham!och? -- tn~ ~s cezta=nzy a good ques~.~on, ~ ~'=~ ing lng pe~meabi!ity. We don~t know aow it's ~s ., or go 825 WEST EIGHTH AVENUE -- SUITE 277-47~{3 ANCHORAGE, ALASKA 10 11 12 13 14 15 t6 17 18 19 20 21 23 25 Q o --~S zeea. We have trend maps " ...... ~ ~']-il:r=ncs~ water saturation trend We feel '='~ "- ~.. ~ =;.a~ we c~,- do hot'sar than duplicate some o-f Chase tight wells. We would not s?ec'~'~- :~' z~_ica;zy go between two tisht wells but we do think there:s enough elbow room A !el= to find t'he ' ' ~ ~ '~ nzgn permeability pockets. z~=a of wha= it cOsts to drill one Can you give me any = ~"" '" "= of these Hemlock ~e!ts? Maybe 'i ought to defer that to juan. Do you" ..... F~Ve SO~e cost fi=u?es juan? ~. PEDKETT!: Yes. They run around a hundred and fzfty to two hundred uhou~and ao s Q Harry liugler "~'~ ~ " ~" ' =o~=u about zn~zvidua! oil/water contacus. Do you have any-- have you seen anything from a ge~!ogic-~aT point of view that would ind:tcate any active water or ware drive in any d these strino-ers? In the Hemlock or Middle Kenai? We nave not tested any water in the i~zaa~_e Kenaz. However we have in one of the Hemlock wells. The A-10. at a lower . . ii iii1[ iiii i .Z.Li iii _ bench '.. did ~ ~,~-~ ~'~ , =~= water. ...... z~,== lower bench there did flow SOP~e "~ . i0 I1 t2 13 14 15 17 18 19 2O 21 22 23 24 25 . ~-.~.~:tz~r~ .~:,~,- s a±l i [lave. cues"-ions was aoked by '~" ~ ~ '~i!bre,?~ 7 .~ ~.:~. e. :.. ~. ..~. _ ~z~v~ you aacres~-c him as Harry at one time. ~ believe we:re ready for questions of an ~o'~ineering nature. Who 'wan:s' to lead oz~ ~.~. G~mB~zn: [ !i lead off.. . "~ .. Pee~etti~ you stated in making your Q {By Mr Gzzbreth) Mr ' ~"' recoms~endatzons ~t ~e 660-~oot s ....... ~ ~s z races- nized distance that:s uti!ize~ by o~her s~ztes in their proration where 4G-acre ~p~czn~ is the ~'uz~. Can you: = us wha~ the stand:sack zs zn those othe~ suates that have !60-acre gas well spacing? is it a thousand feet? A Weil~ the thousand feet for gas ~e!!~ yes. !n other states that have !6u-a~,'re spacings? Q All ~ ~'~ .... . z= ~ you have shown =ne cazcu- ~g:~ On your Exhib~'"~ latad drainage area fo~ a 'well I believe you sa"' -=' an assumed life of twenty years? Q Could you explain brzefty to the Co~rsnit'~ee wna= causes ' zcan= dzzze nco the drainage the difference~ the szgnif' "~ ' ~ = re area o~ the 'wells which you show there - o==ween your A-9 and your A-6' or A-7 aha . ~, ,..~v,~ b.~Div, of Mines &Min. 277-~713 ANCHORAGE, A LASK'A 10 11 12 13 14 15 17 18 19 2O 21 22 23 24 25 A A q A "'"'~ ~' i think it:° '~'~ v,.,~_~ o ~,~. discussed very ir. tensely in proceedings. P arT. aah~-~ ~ it y ~arz' '"~'~.~ rs' one un'" ~_-o - ~ '~ is Uy:pic~ ' _ ' ' ~ ..... ~ has =_ o'~- :~ contzr, an:ca~ a~poszt quite a bit to do with ~ c. ~:~La the fac= u~at do have "~ '~ · ~-?~ b~tuminous element zn ~ne zauzt which .... ~ ~ p~oao=y makes more i~meouiie aoou='~ '~- it. ~'~=n~s ~ w~.at makes the difzerence ~,~ of those factors would you say has the gzeatest effect on your calculations? W'ou~d zu be the pe~m~aozzit =nan prob !y the vaziatio=~ o~ permeabi!~ty z would say ~' ' pzobabty zs one of the stro~s~st ones. '~ V,'i%~ it COSt tO ~uam a ~'~ ~an you give me any idea:''~ .... ~ '" '~'~e-~ wei~_ with one of =~'~l~ upper zonese. Weii~ previously ~ mentioned it was between a hundred and fifty and ~wo hundred 9ut wr~e~ you dual you~r= !ookzng at . ina cost of dz~iiing was what -- iet~s put it this way. ~" - '" ' " emu cost og completion of some ~ gave you prevzous!y but ~-~ = ' _ "~' ,?et up to $450 000 00 of these dual 'wez:~.s cano . , · . ' ~ ~ " juan is :if you are We~, whan ! was trying to orzng out~ ~ - drzl!zng a Hemlock well and complete a Hemlock 'weli~ w~a~ does it cost -- what's the add~tional cost to make a pletion in that in the Kenai'up here? ! wo~z~ say from t~,e~. $/~50.~ ~000.00 -- 7_ would say ~a~ .Dr°- WEST EIGHTH AVENUE -- SUIT5 5 277-4713 ANCHORAGE, ALASKA ! 8 10 11 12 13 14 15' 17 18 19 2O 21 22 23 24 25 - iL:. - it should go at _~o~. bab±y -- wall~ . Now on you~ Exhibit X ya,a show t~.e_. "-~-~,~_, ~~, of saver~' ,~,~,~ penetrating ~le~' zones w!cn~ '-'_..~{ ~ a L:.~" -ac'~,''~ ~ area. ~ ~ ~ ' c~e= .. S 'deS~ $~lieve_ ei''-~'~ ~ in your testimony or Hr. ~'t~ ' '-' . . - ~,~ in your the mention was made on completion interval~ proposed rUles you m~n~ion comple~ion zntervais as well sand s=~.'zngers. Could you tell us what =I.= szgni== ZzC~FiCe 'of the use of this word completion interval is? m!,e completion in~~= ..... ~ is clearly defined as the = ..... ~=v~z ln~ervaz that's being perforated. In any well? zn any We!t~ you're not meaning it =~en as a standard interval unrougnout the reservo~-? ~t~d be va~,iabie? znau means 'when tko we~l zs cased .o=~ --but unzs zs not a completion interval Zt~s Sot to be' . p=~ura~ed to be a comple~ion interval. As ~ understand i% your application you're requesting that you could n~ve as many wells on a 40-acre tract as you desi~,ed, so long as they ware 660 z==~=~-"~ from any o~e~ r we_z producing."in the Middle '~,~i -- Y_ ~m sp=a~,~ng' ~ ~ ~ on" a ~ ~{iddle v,= ..... ~ well -~,~ nave a sane s'tr'~..~-a~ open ~o~,, ,, ~v,~ ~Div. of Mines &Min. ~ ~,om ?~,,.o, .... { inc. wlrh ~ ~nd,~'~t,~r~i~d th~ Ii m~y b~ r~produced t~or Inter-company u.~ ~.~ni¥. 825 WEST EIGHTH AVENUE -- SUITE 277-47t$ ANCHGRAG~, A~ASKA I0 tl 12 13 14 15 17 18 19 fi0 fil A Q Q Q q bainS opened~ periora~ed. ~, you -~ are you zna position to discuss how t~h!s be handled aaminzsarauzvezy? unznm ~t will be very easy .because we wzzz supply the czrectiona~_ survey,, o~ no!e~ ~na zf ,-u~re ~ is any pe~- ~n~ . dezzned geoma~rzcalzy ~ rotation zt will be very well ' ~= '- also should be easily described geographically inside the 40 acres. V%~at about the correlations? Wzzl you 7~ supp=y .... corre- lations also? Your correlations? The correlations will be easily supplied because we will I~ ..... = enm~,.'~e, ei al '~' ind ~snzp ~v~ ..... a-- ectric zogs to . . icate the relatio between sands~ and z don~t think weal! like to do anycn~g but that. Realizing of course tT~aa*;, ~ . cn~ Ccr;~aittee does not ge{- info ...... until some ~nirty ~5~a~zo.n'. mays az~..~",~ .... the ~a!~ ms com- pleted this would throw the entire 'burden of ~r,',of on ~n-~ operator that he l%a~ done something that was , woutdn ~t Well~ like i say~ % don~t ~h~n~ we llke to do it any other way bu~ the 'bas{ ~ay. k~x which one -- ! be!rave it was One of you and ~ don~ t ''~'' ..... ' 825 WE~STEIGHTH AVENUE -- SUITE 277-4713 ANCHORAGE, AkASKA I0 11 i2 13 14 15 17 18 2O 21 22 23 25 A Q A No~ it is ant'~'~' _~y separate. Wa made a point no~ to ccm- nna~ same ~nn=rvaz. ~ ~ ~lkznS about in tr~e D zone. We completed in ~= ar~a .entirely ~,,=~,~?~,ee~.~~ A-2 because we realized ~',~';- :. ~ nn=~ wa did have a s mvup~e gas/eli ~atio. in the Middle' Kenai~ yes. P~. ~-~,~z !n the ' ~ ' '~ ~ ~%~naz. , ~ . ~s there -- do you have any indication nna'c some oz s't~'~'~=~=zs-..o .... are go~,~=~ to be h~ghly~,gas, productive zn Middle Kenai? They probably w~ !i ~"' ~ = ~ ~ _ . znzs is one oz o~ pzob~i .... electrical'~ logs~ ail combz~a~"~ .... ~ions possib!e~ sti'=_l doesn tell us when this oi~z in. the o--°'~'nund is gas or oil. We still are unable to get ~ separation or this interpre~ ration, and the only way to do it is just by testing them and produc{n~ them. If the application ~'~ .. ~ -- zz your aoolication zs aoproved and you have an oil well in one Of ,?~.-,~ ~ ~oe stringers and ge~ a gas wel!~ what's your proposal the,~,~ Do you shut wezl in and pzoeuc= '?~,e oil ~ezz or 277-z1713 ANCHORAGE, ALASKA /I/ !0 1i 12 13 15 17 18 19 2O 21 22 23 24 25 A Q A Q ~'~z we ~F~.md__. ou~ mhe ~nterva-~ where nba gas coma f'-~ .... '~ c,o~':.~c- '-o ~o~ o ' where you have a ~ wa'.~ ~ "~ ='~ "~ ~n "-~ Wel!, ~ we know =~at we do have a gas stzzngez we ao.~y wou!dn t open up. Wel~ i know but you testified "~-~. you can't ..... before you do open it up, and the ComJe.~ttee has . ~' ' ~ as you do get it. This is what ministrative proD!em in c ~m talking about. The way you questions was put around~ an~ tke way understood zu was '-~ '- ~ =ngs uhat would ~ t~a~ if there were st~~ - ' be gas pzoducib!e in '~'~,'~ - zstance~ =~.~o~ same - with a d'~ ~' oo0 -~ - ..... s the way E undezstood that's what you asked me th~c~ ' you -- no~ we ~on~t have 'chat condition a~~==~ because iff ~e know that this' particular sand is gas one time we're de~inite!y not eoin~_ to open again Zn the saree -- in the same. -- 1607 Ye° and within the · ', ~ ~ nexn 660 zeet. All ric~ht ~=,~' ~ ~ " ,~ ~nc out. o .... ~==~ ~ wnac I wanted to f'; You ~esti-t 10 11 12 13 14 15 1S 17 18 2O 21¸ 22 23 24 25 q q q , ~-~ ~.= .... ~ .o ~.._ al~ the stringers are .....~ ~=~ssure connected? , :ne deposi~ s~cr~nS -- "c'his has a iot 'co eo ~i'th '-' ion -- ~he ~a~ ....... and ~,~e ~o have~ as original deposition of the ' '" ~ '-'" ...... _~C indicated in the c~.~oss-sec:Lon~ stringer~ cn~ go one 2articu!ar position makes it so the pressure gradient is =ne same~ even though they have shale bodies zn between them . , uon t think necessar' ~ &nd you ~ ~ lzy ~-~,e~ that they~=~: tt does not necessar~!y mean that those two .... interconnected~ no. the ~-~ -'{n,~ back to in on your tn~ng v keep com~=~a say~ Exhibit H~ where you sho~.~ seve,'~a!= ~ells_ penetz'at~nS_ ' ... '~ ....... ~' ~ "~ involved w$thSn a 40-acze b!ock~ an~ the tren,e~=o~o cos= ? __ _ ~'~, if it zn completing we~ ~ s up here -~ z ~m wonder=~ s economical to complete these wells. Wel'~ this zs ~aat <-t-~¢ is ~:s t~yz~:g ~ .. -.~ ~s our job~ _ all the oil out of the ~'~,*o~,?:,~g that~ " ~ fo~* the benefit of ~ ~ _ nne o¢i company but also the Weli~ we. have a job too~ ~;~. ~are~i. Sectzon ~=:05'i00 with ~'~ ~ncJ~;~.'~J;~ that if' m~7 ~ m~rc~uce~ for ;~t~'.,:omp;~n,/ ~.~,~ off[,/. 825 WE~T ~IGHTH AVENUE -- ~UITE 277-~7~3 ANCHORAGE, ALASKA ~-~ar~ng'~ is a~ou:~ ' ~oday -- it says for ~ha p"~..~v~tion'~-',~ o-~. !0 tl 12 13 14 15 16 I? 18 19 gO 21 2g A q l'essees ~n a poet' ,-n.x~ ~ - ~ ~ to avoid the ....... mulation o-S r{sk arising from '-~ ~ . - 'an~ drilling from an cassava number of 9~ells~ of the reduced recovery m~Sn~ ~eoul~ from too sma!'~ a number o~ ,~.~= And merely~l.~,'-~,:~.~a a quastzon to t~y and 'Find ou~ zt se o-e~c t~i~ too. many wells? .~, ~ inS ,~ ~,~ ~ ~ 4~acr~ spec is - No~ no. il you look in that same section~ you can even see some of the 40 acres not even wii:~. beopane~. ' ~ u~',o~ but in that !ittle interval-~hara they sho~ clue little ~.'~=~ OVer ~..~ .X{' there more or less in the middle half there to the ri~'~:~,t~. ~ some ov those blocks -- now~ Coz that one even just ass,~,~~ that those flows located in the rzgnz piece, ~:,~ big block :ts not goz~g to be dra~'~°~a~ at all~ and you can also show up _.~n the copy over here~ on Exhibit B~ zs it~ .... ~- ~ ~ !~tt~ ~ . -- ~nere s a _ ia block there 'that you~tl probably never drain in you don't =o==y acres. Y~iI~ is it econo:ica! to drill a w~!l to it to d:a2n it? We~[~ it:s one ~~ Zna~ sr:~n you coma to = ........ "~ '~ '~%~'~- i::, f the areal' extent ouc you 011~ yOU ~Oli:t u~:!~.~ . ter~2s 0 ~ 277-~71~ ANCHORAGE. ALASI<A I0 ii 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 also have to 'Ch'i~.k .... abou"- 'the u'~.ickness~ so acre z=e= ...... is ':'~ "- . "~ only e "- ~:- ova Ne'~,~ ' na':o'~ the Q We-"~ ~ you '~.ava~ an -.xx~oLt _~e .~ ~ where you ' acre feet end zour of your six o; seven w=~o at= not ~O ~ ~, ,~ tO O~t -'-o pay on $0 s. A We~ ~ tt~is is what we ~re =x,,~ ,~' inS zgn: no~,,~ we ......., po= zenc r ~:' "' . Now don ~t knou jug''h. ...... ,~'~ would nave n~poenes going away from where they are ~,,,~-~'~- those spots ~ " :.~: - words ~ if '~" " cn~re and sAm~ for znstance~ takes his stick '~ ~' ~ ' _ ~' -- _':fo;hr in puts it Co your left --jus~ left ~rom :'nat there~ th .... ~ ......... ' ' ~= can t be productzve~ cou!~ i~? An~ uhau will -~.z.~ the forty acres e ~ be ins ~ . areas 1-~' . _ ~e that. Q But you still= can:'t tell until you dr~ll_ unem=q ....... wnlch where un~y are? A ~aC S correc'~. ~n~u $ correct. le~. mi~e~r:'"" ~,~.~. The 8av'~:",-g grace here ~ zz'' ~ may inte~'~'ac~--s . ~ is the vertical column. Noe~ we mean to sho~ on that cross-section H ~h=re~ schematzc section~ that we hav~ ,,"'-e oi ....~ne azo-~een izne down to the ,~r~:,..,~=~=~_ock,~ s. na east-west accordine_ -o to the field l'~a~cs~. So we ' ~n=a' a _~ot o~,~ vertzca!" s.~c'~<o~,~_ .. to look a~ in ~-be field~ not only the ~,'~-~r~e 0bjective> uno ,:.r~,~ ~ ~ "~ lng us r~s~ now. We Nave about ~ ...... " ~ ~s could be como!areal in the ~ ~s'~ ~. ~ '~ =c~z= Kenaz ~ection wi .... less sp=,c'~,:' WEST EIGHTH AVENUE -- SUITE 277-47i3 ANCHORAGe, ALASKA i0 I1 12 !3 15 16 i? 18 i9 2O 21 22 23 24 25 than 160 acres~ A-'~ A-9 and A !0 ~'-"='~ " ' ° ' .... ,_ ~ - . ~oe sz.u~-in wells -,, ba corm~.erc_-._ in u~ b!iddle :<e,~¢'~~o,~:~-': "~'~.~ ion. %ja could'nav~ any- where fzom two to '~ ........ " ~.,~ :n~'asand 'ba::~s o~ oil 2er day more nav~ ,,, ver~zcaZ s~ction ~o loom at to sort of u~=~o~ct=~ low nezmeabiiity azeas Chat we ~ cou~,~e~ mn the Hemlock. m~de by Ed Eas:. zn you~ application now you're asking that ave~ynnzng above '~ .... ~- ~ ~ ide~ed .... ~ l=n~z poot ~z~oz. Middle ~' ..... ~ formation. ~,"~=~. oc'~E~:~E~:'°'-~, v ,~. May ~'~ interject ,~hare? We have some p~oo- lems ~" _ u~ta and the regulation z~: tezms of interpretation o~ the sta ~ ' "~'' -- ~zn~ acnuazly the Cha~ .... ~-'~ if we a~ai wzth nnzs as a pool i ~-~ ~' '- " ' , at the ~ n~,~s concept o= zest heazzng suggested ~ ~' ' ...... ,._ ~ which is one that we think is a good one undez the wield Rules concept. You can issue pool rules or you can issue field zu!as~ and if you ~,~e as two zormations within the same zietd~ :hen we ~,~a~ you can zssue the rules as we have suggested allow-: o~n these zn'~ervais ' -~o- to '~' = te 5n~ spaczng pat zn~D va sug- aCCOKG-..~ , g~ed, and as you have poznted ou:~ you could have a compzexz~y be~ ~ .... , ' the ~ ,the open in one interval in one ~-,,~..,~ wz~h " sands t are .... '~ ~ yet nave other wells passing u~ough ' ~ 40 re 825 WEST EIGHTH AVENUE -- SUITE 277-47~{3 ANCHORAGE, ALASKA 825 WEST EIGHTH AV~'-NU',:' --SUITE 5 ANCHORAGE, ALASKA i0 11 !2 13 14 15 18 17 18 19 2O 21 22 23 24 .~,v,~ ~;Div. o£ Mines &Min.. ,%m ~,~,o~. with the ucM~,'l, tr,~l~ ti~t 1~ n'~¥ ~ ~prodm:cd fo~ Int~'.~on'.l~any, u~,e only. 2 '~ wztn ~ poe conce'~ ~ _- 3 s taZu'Ze and "--'" ': ..... ,"~.~,7 .-~_at ions c,~at~ '-'-:~:-s zs~ .oe'~""t ~s ible 'az' ~ you t rea'al 5 :ne concept we're tryzng Zo get -across. 7 Q (By X~. Lab's, on} ~ noticed you report qu=ue a var~auLon o ......... z~ ~zs-botn in the u~ ~,~, and . ~vouza tk',~s tena to give you the '~' ~ nad a number of reservoi'-s in {oression ~na:g you probably~ " there? A We]_~ ~ ~pp~renc!y this varzatzon in gravzty is typzcaz of ~-,~ field but we do have in California similar fields where a lone fault will "~": '= :~=v= a variation of gravity so ~=s ~s typic of a very~ very ba~ly fau!ned area doesn't mean necessarily .... = ":~'~=~'-= '~ re voit but just a -- due to gravity perhaps has a lot to do with it-- ~'~:z~ s a o-?.,:~$~'hion of oil ~rav~ty Q Referring x~m.~,, to your fie~d~ map. with '~'~n~ o~:~,"'~, on it. ~nat s ~. You hav~ some wells with small d~aLnage areas ~ t~-~are Do you be_~eva thau u~,ose w ou:? 2roduce enough oil ~o pay'developmen~ cos:s and operating costs over the -- ? A Not those.oarticuLar completions' ~ ~ b~t we can ~ any ~' lake A~ A~9 and comp'~e a aoov¢ Fiz~le 25 of those weals, _~ I 3 4 5 8 A 7 8 9 I0 11 12 '~3 Q ~5 Q 16 ~' 17 O. 15 19 20 A. 21 22 23 24 25 - 23 - Would you contam~ ~.-e ma'.c-"_ng cuai completions cut of soma ~= :nasa" ~0'a~-s~ c.'"'~": l~d on a soac~I~-~ ~. ---o of fou~-_ ~:"~ .... ~ ""g you got o -- cump~nion wells .... ~'~'~ Those are A~2~ ~ 3 the =,,h~!low is shut down now but ~?,,.~ except that~-z' 8~ ~.= :hay ws~a 'wells ~o ba completed ~',~,~,~ ~ _ "~ a=~.y. ~ney are three wai~ s 'today in the '" ' '= ~ nav~ been corn- ''_ Fradzng Bay ~ield that ' ~0iatad dually. =~'"~,-8 has '~ne Middle. ~re~,,~i~. .~, shut down because Yes~ si -- gas/oil ratio? Yes~ sir. High gas/oil ratio. ,, That Os correct. %touid you con~=;~i~=~= n~gn ~a~/o ra~ so:ne of unese '=:'~"= ~ "~ .... oh say to une north o=~r we! you ::"~:~'-:'~'~ " '~ ..... here in Sections 33 and 34? Ac~ '~' ' ~ =us"- how these uuaz!y we still don~t know too much about ]k,:~o.~ gas/oil ratios tend to distribute '-~ . un.,.m,.,,~.'.~ the field ~:~ ........... is as we :n= only way we will '~ them and p~oduce them because d~i!iing is not necessary -- do ~ nnrouc~ and s~!~ do know you/have a you can drizl .... ~ ~' '"~.~"4'~ z~ ~i,~,~oaoo. ~/oii ratio :~n, the wells o~ not ..~,:,,:,.,~, ,,, ~.,.,,,.~ ~,.Div. Of Mines &Min. ,..~,.o,-,., :~tk>~ Inc. with fi~e u~-,d~;'~nd~ng that 1'1' rn~y be re~.~'oduce~ for lnte~-company, u:,~ only. 277-471~ ANCHORAGe, ALASKA 10 ii i2 13 14 15 18 i? 18 19 2O 21 22 23 24 25 A q q ..v,~ wDiv. of Mines &Min.. ,.om ,o,~, .... t the Urgl~r~,~nd;nr, I thct i~ m~t bo m'pfoSuccd ~o¢ ln~oc-comlman¥.u~4~ ~l~'. ~ yOL:. fe~i .... :-?~ ~ 'cna: is ,:,'as .... bSa'her gas oil ~cio O~[O_a2e~ OiD:DOS~ a gas-bear'~i ~,g s'tr~..~- .... ~r© ~ snou~a ~va yGu sores !nazcation ox it but our haut · '-~'~'~ ground is strict~ ~;! .....~ zy o ~ ~ zn.an just ~ ~' then the gas comes out o'~ the or~ssure~ w~zz~ _ solution. So it's a lztt!e bzc di-Sfarent xrom wna~ -- it is,,n~C a dry w~,~t we ~now, ~=om just !ookzng at the gas interval from ~-~- ' .... = .... ' ,,o the base of your ~ ..... ,l~.-~ ..... o~a~zng sands are zntersperse'd ind~zmznate!y~ ~-- the oitbearinS .... sands in ~-~ne~ !4idd!e Kenai? Very poss-~ble Very possib~'= ~,zo would requzre ¢, r~,,~z tensive testing procedure -- to determine ,.-A.-.~ ?% _ ~a~ $ what we're say:~:~,~, now' heze~ and we de~-inzte!~ emphasize testing procedures~ especially production testin~ procedures. ?g~at are youz ranges in porosity a~c water ~:~a~ura~o~ zn your l.e.,lock aha ,;~le Kanai sands? Do you have any fin- Let me see what what kind of ........ '. ~* -- ~u=oe~ we can give to you. 277-47~3 ANCHORAGE, ALASKA // 10 il 12 13 14 15 16 i? 18 19 21 - 25 - '.-~ E-LST~ ~':~ ~ '-" .- -' ~ ~n,-e ........ '~ ~- - . . ......... . ............. =~,.s and :~ , ~ L . i iiii I I I I I I I II II ~1 , { i ~."l~ ~ ..... Il I .......... : ~ .............. [ ..... - ...... ........ ~:~ would -- this is percent. V'he Middle :?ena-t ~.~e ~re ~ ~.~,~,~- at va~ria shai': ...... ........ ~ ~=r= sanos are ~:,~,~-~..~,~aiiy ~ow~=ss;a~ we go u~o the strnc ...... the less co. mpact~ and have better porosity The poros - v~r~ in so:_~ sands~ s o. We have: : I ~ ~ ~ ' '~ 'zgh 800 m s some mays= as h" as i!lidarce in of ~he h';o~.ane{I-_ poros zty s ands bu:~ we will ruu :: ' "~ '- .... ~ _ ,,,nfo sanmo withquzn="'"-°~ a b<t~ oz ss,st and claI than zzzty mi!!zdarces. You: mzs::c consider ~n~s ,_~=~iveiy ±o'w. e~. ~°-F, z~S~ we gave was ~ millidarces~ ou~ that ' ~; ,I some h"~gh' zigures~= quzte a z=w hzgh zigures. So wa do o~ " z~et of section in Middle Kenai we do see quite a ~,ange in water saturatzons~ oh~ -=rom=,~on~=,~,~ '~ '~ ,fozty-five parcet:t, to fzfty percen~ =x°rn'/'=~v..- 25 ...... [: ~i:} '' 1 ~,m ~.,Div. of Mines &Min. with ~ u~:~i~ t;~t it ~y ~ ~r~ for Int~pan,/.u~ Have you noticed any ~ ~ ~ ~ navzng 277-~713 ANCHORAGE, ALASKA i0 I1 12 13 14 15 16 17 18 19 2O 21 22 24 25 S~ to the to:2 of the R'a~.'~ie, cm::' -=rop. e':~,~;~,~ to 'cne~ top o~ the h~mzo your :uajor ~- where ,~ne gte .... er ;,portion of done more tee inS below more but '~..~e~ve done less testing "'~:'2 the hole ::-~.~ .... we have e=eper. q i~Vz ~:=lyoes ~zo~n ~.~',',a: most oz these t lCiaVe your "'"'"" · .... '~ '~ .... ~'~ ~-~ ...... " ~ are undersaturated? Unders~ r .... ~. =~u aced at orzg~na~ condztzons~? %~hat wou±d your -- how much unde~,'sa'cur~=ea are =n~y: q ~'",'~a: .... is ~ speaking in ,i-s~,~,,,e ....... of =~oressure. Y:-©O loound reservoir p~essure~ otis Well~ taking ~Z~'' reservozr pressure~ .~n= bubble point pressure ~is close to 000 i.~ounds. , 14~u pounds? W'e!!~ then about ' '~"~ . , q ~o yuu be,.~ieve chat these sands will sometime in the fu Cure be capable oz ~'znn- oU~sec:ed to secondary recovery? WEST ~IGHTI-I AV~NU~ -- $U~T~ 277-~713 ANCHO~RAG E, ALASKA 2 4 5 7 $ i0 1! !2 14. 15 17 18 2O 21 22 23 24 25 ^ ~-:~-':"- ~'y. =~is :~ "-'~ '"' :' ~'ast about tke only way to -.~-~-~.,,~ ,,,ola~.., . ~ . ,~s .O~sao-Y {,~z=~ ' ~ ~as ii ..... . ~ ~ ~_l~. ~ ilk CX~s q.~ acres ~ou-senera!i ~ '~ y ~ secon6ary"_,.'ecove~"~_y you do,~.: ':-~ '~v~=~ too much =~==~ w-~, a one we~I znjec~ion~ w~ml. You nav~ uo kava some k:~,d .... of pattern ,=~u~'"~ t~ .... st two '6F~ac S "';~ ~ have ~or now _ ~ coDte back laze'" P~. :C:~SiEAL~' i<.:?.~_ G.~ ..... ~n~'~-~ o~ Q ~sy . G~!bre ask. ~f~6nzs~ ~ ap::~icat~on is approved~ Mr ~edze~ your opznzon wi!z everyone's co~eza~v~ =~a=.~s be ~ec~ed? Bo~h operators ant ~oy~y owners. A, Yes set Yes q zs there any evidence of 'well bore damage due '~'~' ~ 111 ~ or "21 'C dr:~:l{;,,~,o'e or to yomr como~ecion"~ "mecnoe:~' ~ that '~'~' accoun~ Some of our for:.ation tes~'- ~ndicated w:~"-~-'~- 'shay" c~=z'-'~:"~ not permanent type of dama~te. ~ '~ut~ .. -- except '~he one ~=~o~ to ~.~ fau-ts indzcate -- and i :::~{'~.~-~.~,,. '~he ~..,~a~,~,~,,~o-,~ is mainly 825 W~ST ~IGI-ITH AV~NU~ -- $U1T~ ~77-~713 ANCHORAGE, ALASKA io q 12 13 i~. Q 15 18 !? 18 A 19 20 ~ue :to i-ack o-S reservoir As you ..... 'tko ce=cx"_a only iLi~LC~Ces "-~Zt She ~,~e.m WaS not c~p=s to ,..~ .auca ' "- ? .....~"" " ' ' ' ....iy '~ ~ ' -~C. Of reserve Do you see any i,,',~,,)rovar, ent in any o-F your "~,~ ~,? .... w~.~o az~er o!acing them on ~" " ',;-" Yes ~ si~'. -- and c!eninS i'm Yes szz A-2 is a typ~a~l ~Cl"'m, Ola "; .... ~'~ being imoroved after abouE a men.~ s ./'~,,,~ .w~ Lets. on} T %~ou!d like to ask a quest:{on. Are you .qO y ~'~ . ~ - _ ~.~ing on a vary int.:',-',,'"ive co,.'ing progr~u as you con t inue w~ ..... ~n your dave~oDmant provided~n~'"-~ ~'~ you closer spacing density? " ~*~}~.,~, mo,*e and more since we reaiiz%d Yes sir we have seen ~o in some of these cores 'that you happen to lool~ at. At the ~ '= '- ....... ZI~V~ ~%~$ Op~iF~mOl! bu'E ~me~z 'we sEar'gee having exoerience 'o~it'h some of tkese very io~ producers~ we knew it was ~~zng dzfzerent z,om 'what you expect to see any els p~ac~ _ e. So we have been coring more steadily no~g than we ever ~. LARSON' ~ $ a~l T have r~ght now. i0 il iff 13 14 15 16 17 18 19 2O 21 22 23 24" 25 q A A q /,'-'~ ',v have ali}', of ,_u.~ -.- ~,.:-~-.~ .... LS' ' ly : :'-~ ;'~ ~ ' ' ...... ~;~ 'o ~ ay very steacy, l'f yo-c look it up in your record you .... v:i!! see that i'c has a ~o;m~_ .,-,~ znzs ~, matter =u= ~,, reco zs a!~. = wanted ....... 'C~.e /0'? ~ ~ ,, o to g~ it in here. %.~'el:i__, how about "~ ware,.'_ .~= No~ we n~ven t seen water so far~ Carl. Our w=!zs are definite~_y~ =e~,4 ot~='~'~ion ty~,'oe o_-~ reservoir ~ a ns' ~,,,~.,4~,~,~, ...... fact that it's sof'-a-,~'uzted~ the only source oz e_. -o~ ~ao so ~e ~aven~t seen wate~ gt all Ver~ i'~ttle :~<. v~u~ ~tHE' Tna,~ ~s all. , . ma~e any init:'" key ~ juan have you to indicate whether -~ .... _ _ . - --wn== type o~ 'Fluid injection gram you may use? ~ ~=~ even o=~ore we even ~ = b~lit ~ ' ~-~" ':~ '" . and my platform. Bas~a s~=y of ~- even the calculations show=d that forty acre was $o:_~,,~_..o to be ~-" and ~ try ' " ~ _ space ~= =hat time~ ' '~ ~ n,~A, ination o'~ ,~he jectlon~ ~ =fy gas lnjection~ I try a c-~:,~ _ two~ gna I fount that possibly water zs e°'°i'~'~--o to se most economical. .~oo, m~, ,, ~..v,,~ ~Div. of Mines &Min.. 825 WEST EIGHTFI AVENUE -- SUITF. 277-47~3 ANCHORAGE. ALASKA 10 it 12 13 i4 15 !? 18 19 2O 2! 22 23 24 25 (" ( - 3© - was i-,A a?.d for an :' ¢-,: ~ ~:e formation :~ ,.u2.~ '-.C ..... !0? 0 ~ "-~ ,-- .... es imate ~,~hat would be ~;'" ' _ . cna we!ls~ -,~-r= .,- ~ ' ~' '"~ ' ' =~','-= fac ors .~,,at should project. Kug!ez? _ . =oou~ your we!is '~ ~' '~'- is based on ''-~ ...... ~::at are Zl~ exzstence ~ SO-acre s~ ~ ~or the '"'"~ ~' ., ~S~=~ now wou!a this w,a!__t - map difc~z~r much iz= wa nad l:.O-acre soac~gf, Lo,,~!,~';'~c'-..__o au it nero z~ seems have wm=n very ~ew exceptmons all the 40~s ~ii© ~~ " t'laere ara a few little A We!i~ _~ike i mant=o~d prevzeus~ spots whaza pzobably wa can put 40 acres zn ~:.~s~ Wall~. specifically ~-,o.":~du~ you say w:~' ~ra those weze~. Mines 82S WEST ~'IGHTH AVENU~ -- SUITE 5 277.4,713 ANCHORAGE, ALASKA 10 I! 13 14 !5 17 18 !9 2O 21 ~3 q A 40 in' ~ ........... ~ ~ ' !y ~,~. case of -- for secondary '.'ecovezy. So we nave two oyez -~'~ ' ' "-~ /'0 acres iy even thoug'h it is in the aquifer kate/--we"ii 2ut i'~ for Sn~ection~ ~nd we probably break this block in nere~ ~z~ block in haze~ zoz add nzona~ wears. We have only one in here to take care anise ezgn~y. ; but ,~:~= you ma~e ~ha~ zo'~-ty~ ~ wa cuuZd probab- put some mo~ein thez~ anG a~ b~n~f'~t~ ~,~ ~'~er ' " .... ~' be s° ~ ..... ' ==~;~;,._c:~ out ~t ~s ....~=u~ze ~{ena~"" ~ '~ ~ because then ~ ~ $oz~g to be from the ~"~ ~'' ~ ' g~ zng u~ ~ ~,,,~'te ~;~e wells above .... ~ne-~ ~ "~' .... So "'~'*'=~,;~ four wel1_s p=~ ~'" ~'' ,~.,~,,.-,o~,,~...,,,,¢,.~,..~ _ ~ We~ r would say for ail ~= _ uz them. Wa would be asia we:i~ have the" ..... ':~ ~ z~eecom to develop a I ztt!e bit more mn the (By }ir Lets,on) ~ re::~ii,-~e th,a~ you'~ cumula=ive with- question~ ~u= do yeu nave ~'~,z~rvo oress=== data on of ~,4~nes '~ ~; &,Min. ~'~ Ir~ wi~h 'f,~,~ ~n<.~,w~'~¢,~In~ '~h~' i~ m~y ~ r~,.~c~Juc~.~ ~or Ini'~r-cornp~r,y. ANCMORAGE. ALASKA I0 !1 12 13 14 15 16 17 18 19 2O 2i 22 23 24- 25 auz.s or by oermeab:'~:t''- ,~,~ :v:,~- Larson~ fro: llka i say~ fro: in=''-~,-,~ forma tiaA: tasts~ DST ':-~'~=.~ on ,A~2 for insta~ca~ : ~cne,:.,~" ti:at I tha~ we ware c- ins to =~_o~ ..o~= a pressu~,= buildup -= .... ~'~,-,'='~-~o- like '~ ~:'e~:' you ~re Xave yom:~'~e,~,~:~,.}ted,.,~ to run any we~ zntercerence tests or a~ ~ '~-h ' ~ ~' t ......~ .... ~- ? 'a ...... ~ good "- ,; ~ ' ~z;;~o~s sand~ and it o''~,;' ' russia ...... ~'2:~- if eon t your and more abou~ being no f~z'sr~er tions '~ ........ qu~ az~::~ the Co':,~,~'=,a{ tree or ~ d to~-~:. ~re there ~.y l,,,7ell~ _ ~ ~ mace f~'.',~,~ cn~ ',2ub'~zc amazenc are ~',¥"e any statements r ...... E:d like to ~nan:: you ~,,' your tesa/mony ~::zs zs the ~:¢'" ica ion 'wa nad fo,~' as azast appl t ~ve ~ sen ia~z 40,-~cre s°ac~ =-~a'.-' Lt: u ........ ~=o=e~ or ~s~'~'~ of a _~..~..~_'~] ~:~,~:..e~:~.~'.~k for our ,~n~:~.~ ':'-:aa- to c~nsidar. ,,,~, ,, ~v,~ ~.~'Div. of Mines &Min. _J ANCHORAGE, ALASXA !0 !i 13 15 17 18 19 2O 22 23 2~ 25, ?~ ~ . ,~ , ,. ~, .... ? ...... ~;, ~ ..- . we~d !zke ~o 'thank you sent" -"' ~o~ your courtesy. will co~;c~ ~t~za pzoc~eczngs for uo~.w;~ion Order :~57. AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. being first duly sworn on oath deposes and says that ...... -:_:: ...... A ]c,r?~,''i (]er!.: is th,_..::._~_..._z:_.:::.._: .... : ....... of the Anchornge News, s d~ily news- paper. That said newspaper has been approved as s legal news- paper by the Third Judicial Coup, Anchorage, Alaska, and Jt is now and has been published in the English language continually ns s daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed office maintained at the aforesaid place of publication of said news- paper. That the annexed is n true ~s Jt w~s published in regubr issues (~nd not Jn supplemental form) of s~id newspaper for. period of ..... ~9~ ...... inse~Jons, commencing on the ............... ': .......... ~lY ~ , and ending on the ....... :?:~])}J;__. day of 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 publ[catJon the sum o~ ~ 20.~q;~ which amount h~s been paid in ~ull the fete o~ 25¢ per line; Mini- mum charge ,$7.50. Subscribed .. sworn to before me this :':__ y u, ........... :_::,..:.__., · *'../¢ ;~' /, . "'~'-""C , "" No~¢~ F~¢blic is asd for the Third 8Msion, Anchorage, AJaska MY CO~{~ION EXPIRES ................................................. 19 ........ ',,t~'l'[Cg OF' PL!BL'fC HEARINC STATE OF DEPARTMENT OF ~ESOURCES DIVISION OF MINES AND MINERALS Alaska oil and Gas COnservation - Committee Conservation File No. 57 Notice is hereby given ~ba~~ the Union Oil Company of Cal~omia has requested the Alaska Oil and Gas Conservation Committee to issue an order as pro,vialed by Rule 2004 of the Alaska Oil and Gas Conse~a~ion Regulations prescribing field rules ~for that part of the Tradh~g Bay [~iela deseri~ea as follows: Township 9 North,' Range 13 West, $.~. Section 3: NW~, ~SW~ SWl/,~ Section 8: Section 9: NW~, ~N~t~ Towns~p 10 North, ~ge, 13 West, Section 33: SV~S~V~, Section 34: The ~pp~eant requests tha~ field ~les supereede 8~ previOusly approved Trading Bay Field rules an~ apply ~o the ~emloek Forma- tion (~he tnterval~ Which correlate l w[th ~he 53~ foot to the $720 interval ~ the Union O11 Comply of California No. 1-A Trading Bay J well} and the Middle Kenal ~iom '] The a~lle~ fu~her re~ues~ [~he field rul~ proude fora greater' ~welI density ~h~ presen~Iy mt~ted, decrease the m~imum ~ee between o~ an~ gas we~s, fine easing a~d cementing programs~ ~for field wells a~ pro,de [, m~istrative ap~rov~ of request~ for well ~esting where exeepgion~ ]Rule 2159 of the O~ ~n~ Ga~ Con- l serva~Ion Re~latlons ~e neeessaw/ held in ~e City Coune~ Cham~ers~ ~ ~he Basement of the ~. ~. Lihr~y, ~f~h Avenue ~n~ F S~ree~,J Anchorage,' ~aska, on J~ua~ 26, 1068, at 2:~ p.m., a~ which ~tme the field ~ules proposed by ~ app~- e~t a~a any othe~ ~es which bo proposed for ~he ~a~ng Bay Field will be presen{e~ ~ ~s ~d o~her~ may be heard. ~xeeu~ive ~aska O~ ~d Gas Oonservatton 3001 Porcupine D~ve ~chorage, ~aska ~ Leg~! ~"~tee No~ Union Oil Company ~'" ':alifornia 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 union t, Robert T. Anderson District Land Manager · January 9, 1968 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re: Dear Mr. Marshall: APPLICATION FOR AN ORDER PRESCRIBING FIELD RULES FOR THE DEVELOPMENT OF THE PRODUCTIVE INTERVALS WITHIN THE TRADING BAY FIELD UPPER COOK INLET, ALASKA Enclosed herewith is our application for Field Rules for the Trading Bay Field. Pursuant to the telephone conversations between our attorney and you and Chairman Williams, we request that this hearing be scheduled for 2:00 P.M., Friday, January 26, 1968. If there is to be any change in this date, please notify us immediately. The enclosed application for Field Rules supersedes our application dated October 25, 1967, and we hereby withdraw said prior application. Very truly yours, Robert T. ~lnderson , RTA/nr enclosure Form 401 ANC-A (New 7/67) Union Oil Company~'[' ',alifornia 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 union .January 9, 19 68 Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re: APPLICATION FOR AN ORDER PRESCRIBING FIELD RULES FOR THE DEVELOPMENT OF THE PRODUCTIVE INTERVALS 'WITHIN THE TRADING BAY FIELD UPPER COOK INLET, ALASKA Dear Sir: Pursuant to the Oil and Gas Regulations and applicable Statutes of the State of Alaska, Union Oil Company of California, on behalf of itself and Marathon Oil Company, presents this application to the Alaska Oil and Gas Conservation Com- mittee to issue an Order establishing Field Rules for the TRADING BAY FIELD, authorizing the spacing, pattern, casing and cementing requirements, and produc- tion procedures for the Trading Bay Field and also authorizing the granting of excep- tions to Section 2159 of said Regulations for testing periods not to exceed six months. Ie The area for which the applicant requests the establishment of Field Rules includes all the area described as follows; which lies northwesterly of the Trading Bay Fault Zone2. Township 9 North, Range 13 West, Seward Meridian 1 ' I 1 Section 3' NW~, N W~S W~ Section 4' S½, NE¼, E½NW¼, SW¼NW¼ 1 1 Section 5' S¥SE~, NE¼SE~ Section 8' NE¼ . 1 1 Section 9' NW¼, NW~NE~ FORM 401-ANC (REV. 8/67) Mr. Thomas R. Marshall, Jr. -2- Executive Secretary Alaska Oil and Gas Conservation Committee January 9, 1968 Township 10 North Range 13 VVest. Seward Meridian ' ~ E~ - Et-E~ Section 33' S¥S 7, N yu ¥ Section 34: S'W¼ II. Union Oil Company of California and Texaco, Inc., are the only operators within the area described in paragraph I above. III. The issuance of the Order requested by this application will permit the development of the Trading Bay Field in a manner consistent with the intent and purpose of the Alaska Oil and Gas Conservation Regulations and the Statutes of the State of Alaska. The applicant will present evidence to support the issuance of the proposed Order upon request of the Committee. IV. The applicant requests the issuance of the following Order: FIELD RULES FOR THE TRADING BAY FIELD Rule 1: Prior Special Rules Superseded These Rules. shall supersede all special Rules previously approved for the Trading Bay Field. Rule 2: Area to which These Rules Apply The Trading Bay Field is located within the area described as follows; which lies northwesterly of the Trading Bay Fault Zone: Township 9 North, Range 13 'West, Seward Meridian " ~ W~ Section 3: NWi, NVV¼S' ~ Section 4: Section 5: Section 8: Section 9: EyN W~ S 'W~N W~ 1 1 1 1 S¥SE~, NE~SE~ N .¼ · 1 ! NW¼, N Mr. Thomas R. Marshall, Jr. -3- Executive Secretary Alaska Oil and Gas Conservation Committee January 9, 1968 Township 10 North Range 13 West. Seward Meridian " ~ 1 1 ~ Section 33: S~SE~, NE~SE~ Section 34: S VV¼ These Rules shall pertain to all wells in the Hemlock Formation and the Middle Kenai Formation of the Trading Bay Field. The Hemlock Formation includes all intervals which correlate with the interval 5300' to 5720' in the Union Oil Com- pany of California ~I-A Trading Bay well. The Middle Kenai Formation includes the sedimentary section above the Hemlock Formation of the Trading Bay Field. Rule 3: Spacing Acreage (a) Hemlock Formation: Not more than four (4) completed oil wells shall be allowed in the Hemlock Formation on any governmental quarter section; (b) Middle Kenai Formation: Not more than four (4) completed oil wells shall be allowed in individual sands or completion inter- vals within the Middle Kenai Formation on any governmental quarter section. (c) Gas wells: Not more than one (1) completed gas well shall be allowed in the Hemlock Formation or individual sands or com- pletion intervals within the Middle Kenai Formation on any govern- mental quarter section. Rule 4: ~pacing Footage. (a) Oil wells may be completed closer than 500 feet to any property line of the lease except that no well shall be completed closer than 500 feet from a lease line where ownership changes. (b) ~ .,N6' oil well shall be co~pleted~., closer than 660 feet to any well ~.:..drilling to or capable oi~producing'oil from the Hemlock Formation, and no oil 'well shall be completed closer than 660 feet to any well drilling to or capable of producing oil from the same individual sands or producing intervals in the Middle Kenai Formation. (c) No gas well shall be completed closer than 1000 feet to any well drilling to or capable of producing gas from any formation in the Trading Bay Field. Mr. Thomas R. Marshall, Jr. -4- Executive Secretary Alaska Oil and Gas Conservation Committee January 9, 1968 Rule 5: Casinq and Gementinq Requirements (a) Surface casing will be landed at approximately 1000 feet tO protect known fresh water aquifers and cemented with suf- ficient volumn to circulate cement to the sea floor. Casing and control equipment to be hydrostatically tested to 1000 pounds per square inch. (b) Production casing will be landed at total depth and cemented with sufficient volumns to place cement above known productive sand intervals. The use of multi-stage cementing procedures will be permitted. Alternatively, Operator may elect to cement a casing string to an intermediate point, drill the well to total depth and cement a liner for completion. All productive inter- Vals to be protected and separated by cement as above. Casing and well head equipment to be hydrostatically tested to 1500 pounds per square inch. Rule 6: .Testing Exception to Section 2159 At the request of an Operator, administrative approval of a testing period may be granted to permit a well or wells to produce as exceptions to Sec- tion 2159 of Oil and Gas Conservation Regulations. Such testing period shall not exceed six (6) months for any well. V. Exhibit "A", attached hereto, shows the following: the leases and lands affected by this application; the location of all completed and drilling wells, including the loca- tion of all abandoned wells, on the affected lands and surrounding property; and the names of the affected and offset operators. VI. Except as specifically set out in the Order proposed by this application, operations within the Trading Bay Field shall remain subject to the Alaska Oil and Gas Conserva- tion Regulations as adopted September 30, 1967. VII. A copy of this Application has been sent to Texaco, Inc., by registered mail this date. A copy of this notice, the date of mailing, and the address to which the notice was sent is attached hereto. Mr. Thomas R. Marshall, Ir. -5- Executive Secretary Alaska Oil and Gas Conservation Committee January 9, 19 68 'WHEREFORE APPLICANT REQUESTS: 1. That this Application for the issuance of the Order establishing Field Rules for the Trading Bay Field be set for hearing and that notice of the hearing on said application be given as required by Alaska law and the Alaska Oil and Gas Con- servation Regulations. 2. If no proper protest and request for hearing on said Order is timely filed ac- cording to such law and regulations,that an Order be entered herein to establish the Trading Bay Field Rules as requested in this Applicati'on. DATED this 9th day of January,. 1968. Very truly yours, UNION OIL COMPANY OF CALIFORNIA RTA/nr enc lo s ute s l+ I ~ III I)1111 IIII II I II ._111 I I I I I I I I I IIII I I _ . I ./,' / i i I ~:! 'i! -" / It / '" ,'" '-- T I0 N ~ !$ . ,, / TEXACO / '" PROP. PLATFCRM / © v [' / / / /; / , / TD:7Z $0'./ I ~llli::il IIII1~ / TI:'"/ / / [ m ,," .t- ,'~. ! "' I J / T,B.51'~'#'I ,~, J -' J ,/ I ~ #2 ~ T.D. 9104 ATLANTICRICt'(FIELD ADL 18~75 TEXACO (OPER) Ai~L 17597[7. I I -= -=,,, : / ~ , ii1 ' ' /' , : × \ ~,---9 ' lie /' t ~,, . I,4 T.D.690~ I ~-- /' UNION ,,,"= ~' ~ , ' I J~ ,,.,? / 'WEST TRADINGBAY I j. "-~ / ~1)$ ~c~ ,,.. -,- ,),~52,, .._,,,,-~,,,,,. /A-e ~ I . ... / ' ' '"... ~..../ UNION ' u'°'*~:~l~ ~, j~JJll~ T,O' 6509' ,~' ""~." / "', .... ~ .TRADING BAY-#- I~kx.dl~ 4C~ ~1' ..' J~ , / .~ .,,,,,,,,,,,, .~'4 '~. "blF--,-,,,,llV~~o .' FIE. LD L/MIT ~. ~/ ~-,o ~....,~ j,~o:,o,~.: :~h~. ~, .,/' , . /' / ~ ~I __ ~ , , UNION-MAR - ~ 'il : ~ /-.---~ J~ /' ...., / ~,,,,,,,,,,,,,,,,,,,,~/~ I...,IIid~ ~-"' /! ,.-'"' ~/ /' / /// i - --' '-~ --' "=' "- """ -" -" -~ ///'il TRADING BAY FIELD I / UPPER COOK INLET', ALASKA , // J-/ ] 6 ARCO ~, McARTHUR / /'/ f / / / ~ SCALE: t":2000' JAN R. W. Yarbrough District Operations Manager Alaska C Union Oil Compan . California 507 W. Northern Lights Blvd., Anchorage, Alaska 99503 Telephone (907) 277-1401 . December 26, 19 67 ~Z.¢~-- unlen % State of Alaska Division of Mines & Minerals 3001 Porcupine Road Anchorage, Alaska 99504 Attention Mr. T. R. Marshall, ~r. EXCESSIVE GOR Trading Bay State Wells A-7 (L) and A-8 (S), Trading Bay Field Gentle.men: In response to your inquiry of December 13, 1967, we wish to advise you of the producing status of the subject wells. Trading Bay State A, TL tested various intervals in.the Middle Kenai formation and in the Hemlock. The Hemlock pr~ved to be oil productive but non-commercial and is isolated in the well bo~ by permanent packer. Dual strings of 2-7/8 inch tubing Were run .to prod~tCe the Middle Kenai interVals 4600-.4735 and 4900-5730. These interVals are not continuously perforated, but are specifically designated on P-7 form filed October 18, 1967. Since completion, the GOR on A-7 (L) has risen and in November exceeded the allowed 2000:1. Trading Bay State A-8 (:S) is a ..Middle .Kenai formation completion perforated at intervals between. 5685-6535. A DST of the sand at 6340-60 indicated that zone .to be oil pro- .ductive prior to the initial completion. This completion has experienced a rapid increase in GOR and ispresently shut in. The Hemlock formation is dually completed with the Middle Kenai and is currently producing over 2000 BOPD with a GOR of 1:400~'1. Two temperature surveys have been run on A-8 (S) in an attempt to locate the high ratio sand intervals. Following our best analysis, a,remedial program will be developed. However, prior to -k~a, remedial work,, A-8 (S) will remain shut in to prevent excessive gas production. As a result of the foregoing, we wish to request that Conservation Regulation No. 2159 be waived for Trading Bay State wells A-7 (L) and A-8 (S) for a RECEIVED DIVISION OF MINES & MINERAL~ ANCHORAGE State Div. of Mines & Minerals December 26, 1967 period of six months to permit further testing and evaluation. These two com- pletions are essential in determining the productive capacities of the Middle Kenai formation and provide the necessary data for the development of this formation in the Trading Bay Field. Very truly yours, R. W. Ya~ough District Manager of Operations RVv~f:nnb CC: E. D. B. Laudeman, Anchorage RECEIVED DWI$1ON Or MINES ANC}-IORAG~ Union Oil Compan,~, ,')f California 2805 Denali Street, ,-~nchorage, Alaska 99503 Telephone (907) 277-1481 unl, n Robert T. Anderson District Land Manager November 6, 1967 Mr. Thcmas R. Marshall Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska APPLICATION, 40 ACRE TEMPORARY SPACING TRADING BAY FIELD UPPER COOK ~ Dear Sir: Reference is made to our letter of October 25, 1967, petitioning the Alaska Oil and Gas Conservation Ccmmittee to issue a 40 acre spacing 'order covering the Trading Bay Field, to permit cc~ningling of production 'in the same well bore and to grant relief frcm the 1000 foot standback frc~ wells within the same pool. ! We hereby request that said petition be put in suspense pending t//e review of information~ gained in the drilling of the Trading Bay ~A-8 well which is now completing. At such time as the new information has been integrated into the geologic interpretation of this field, we will either amend said application as required or withdraw same and sutmtit a new application. Thank you for your cooperation in this regard. Yours very truly, District Land Manager Form 401 ANC-A (New 7/67) RECF]VFD NOV? 196i DIVI,~ION OF MINES & MINF. RAL,~ ANCHORAGE FORM 497 5- 65 PAN AMERICAN PETROLEUM COIIi PAIION SECURITY LIFE BUILDING DENVER~ COLORADO 80202 November 1, 1967 Re: Request for 40 acre spacing Trading Bay Field Cook Inlet, Alaska Mr. Thomas R. Marshall, Petroleum Supervisor Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Dear Sir: We have received a copy of Union Oil Company's Application for 40 acre spacing in the Trading Bay Field, Upper Cook Inlet, Alaska. Pan American Petroleum Corporation hereby enters its appearance in said matter, and specifically waives service of notice of the filing of the application upon it in accordance with the requirements of the statute. We do ask to be advised of the time and place of the requested hearing. PAN AMERICAN PETROLEUM CORPORATION Its Attorney OES:cb CC: Union Oil Company of California Anchorage, Alaska NOV 6 1967 DWI.SION OF MINES & MINERAL~ ANCHORAGE Union Oil Company o!,~:'~'~lifornia ~'"'~' union October 25, 1967 RECEIVED OCT 1967 E)t¥I$1ON OF MINES & MINE~A~,~ ANCHOP, AGE Mr. Thomas R. Marshall Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska Re: APPLICATION, 40 ACRE TEMPORARY SPACING TRADING BAY FIELD UPPER COOK INLET ALASKA Dear Sir: Pursuant to Sections 2009, 2061 (b), 2061 (c) and 2154 of the State of Alaska Oil and Gas Regulations, Union Oil Company of California as Operator and working interest owner hereby petitions the Alaska Oil and Gas Conservation Committee to issue a temporary field wide spacing order covering all pools within the Trading Bay Field to permit the development of the Hemlock Forma- tion of said Field on 40 acre spacing for oil wells drilled therein and the de- velopment of pools within the multi-pool Middle Kenai Formation of said Field on 40 acre spacing for oil wells. In the event of a gas well from either forma- tion 160 acre spacing for gas wells is requested. To permit an orderly develop- ment program and obtain maximum production we further request that the vertical producing intervals of the Middle Kenai Formation be divided into four (4) pools, and that we be permitted to commingle production for all pools in the same well bore. It is requested that such order of spacing exception, when issued, in- clude relief from the requirement in Section 2061 (b) "nor nearer than 1,000 feet to any well drilling to or capable of producing from the same pool". The area affected by this request is outlined on the attached plat and is described as follows: Township 9 North, Range 13 West, Seward Meridian Section 3 NW¼, · N¥S Section 4: S½ , , EyNW¼, SW¼N Section 5: S½ SE¼,NE¥SE¥ 1 Section 8' NE~z .. Section 9: NWl, WSNE~, NE~NE¥ FORM 40I.IBL (REV. 5/67) Mr. Thomas R. Marshall Jr. Application, 40 Acre Temporary Spacing Trading Bay Field October 25, 1967 Township 10 North, Range 13 'West, Seward Meridian 1 ! I 1 Section 33' S¥SE~, NE~SE~ Section 34: S'W¼ To the best of our knowledge the attached plat reflects the leases and Unit Agreement areas affected by this request together with all completed and dril- ling wells in the area. In our opinion the affected operators are as follows: Texaco Inc. - Operator for itself and Superior Oil Company Union Oil Company of California - Unit Operator - Trading Bay Unit. We respectively request that the Committee issue the spacing order including pool designation with permission to commingle production and relief from set- back as hereby petitioned. Prior to the public hearing we will submit reports maps and cross sections to detail and support this petition. Yours very truly, UNION OIL COMPANY OF CALIFORNIA Robert T. Anderson ,,/ Attorney-in-Fact ... RTA/nr enclosure ,? TION, RI3W ATLANTIC-RICHFIELD UNION- MARATHON ADL i m II m m mi Imm ....II mm m IIIlI IIii..i. m m iili i m · : · - / : o.....~....,..~..,,...[.....,.-,/~.:;;_,~ : ES TIM~4TED : .... " "' ,:' FIELD LIMIT · . : ' '. ~ ,. ,. , : . : : I · | '. . mmmmmmmmmmmmmmmm mmm m I ;~ Tt~ADING BAY UNIT BOUNDARY UAl/ON OIL CO. OPERA TOR I ~8731 ' i ii unlen II I T9N~ RI3W TRADING BAY FIELD UPPER COOK INLET ALASKA M C ~'~ ~ '~" ~ ~ U R c..,, T ll~¢, SCALE] I"= II I II I I I III I TRADING BAY PRODUCTION FACILITY GAS HANDLING SYSTEM PRODUCTION PLATFORMS iKs I TRADING BAY FIELD GAS ANALYSI~ ACTUAL D__ES~GN CgMPONENT VOL.% VOl_.% NITROGEN I 73 I 73 CARBON DIOXIDE .42 42 METHANE 90.55 90.55 ETHANE 217 217 PROPANE 237 2 37 ISO-BUTANE 83 83 N-BUTANE .96 96 ISO- PENTANE 35 35 N- PENTANE 24 24 HEXANES PLUS ~_ _38 TOTAL I0000 IO0.O0 GAS RATE-NICF/D 8,000 25,960 PROPANE CONTENT-BPD 126.2 409.5 CRUDE GAS TREATING SEPARATION TRADING BAY UNIT GAS ANALYSIS ACTUAL COMI:K)NENT VOL.'/, NITROGEN t0.77 CARI~N DIOXIDE 13 METHANE 6t.24 ETHANE 11.87 PROPANE 10SI ISO-BUTANE 1.61 N- BUTANE 2 69 ISO-PENTANE41 N~PENTANE 55 HEXANES PLUS I2 TOTAL i00.O0 GAS RATE-MCF/D 21 ,OOO PROPANE CQi~FE]~I'-BPO 1,510 v_O_LA. I0 77 6I .24 10.81 1.61 2.69 35 tO0.O0 22,400 1,610 CRUDE FLASH VAPORS ~S ANALYSIS A(;TUN. COMPONENT VOL.% NITROGEN I, 57 CARBON DIOXIDE t2 METHANE 22. I4 ETHANE i7.43 PROPANE 29.98 ISO-BUTANE 6.33 N- BUTANE 12.98 ISO- PENTANE 2.81 N-PENTANE HEXANESPLUS ,349 TOTAL IO0.O0 GAS RATE-MCF/D 6, I00 PROPANE CONTIENT-BPD 1,217 DES~C,,N v._q_k,.t~ L57 22.14 29 98 633 12.98 2.BI 3.15 IO0.O0 6,400 1,27T GAS PROCESSING LEX PLANT EXPANDER DEHYDRATORS TURBO-EXPAN~R GAS AItAI,.Y$1 $ A~TUAL DESIGN C,,Q~IPONE NTVOL% VOL.% NITROGEN 7. II 548 CARBON DIOXIDE . )9 ,27 METHANE 6I. 14 71.48 ETHANE 10.63 7.99 PROPANE 12.22 8.92 ISO- BUTANE2.25 1 69 N - BUTANE 4.08 2.80 ISO-PENTANE.81 55 N- PENTANE .BI .47 HEXANESPLUS .7..__~6 .~. TOTAL 100 O0 IO0.O0 GAS RATE- MCF/D 35,100 54,760 PROPANE CONTENT-BPD 2,853.2 32965 TURBO-EXP.~diDER RESIDUE, ~ AN AI,.¥~I~ACTUAL COMPONENT VOl~% VOL% NITROGEN 8.29 6.52 ~RBON D~XIDE .21 28 METHANE 7042 8~.15 ETHANE 1042 mOmNE ~.07 ~O-BUT~NE .5~ N- BUT~ E 96 .20 ~-PENT~NE .03 02 N-PE~ANE O~ .0~ HEXANES PLUS .OI - TOTAL ]00.00 ~00 ~ G~ ~-MCF/D 29,~4 45, PR~ANE CONTEN%B~ 1,808 877 i , DEPROPANIZED OVERHEAD YAPOR~ GAS ANALYSIS AgTUAk C,,(~wlpOtq E NT V~,% NITROGEN .35 34 CARBON DIOXIDE .19 .32 METHANE t~OI 18.87 ETHANE 23.56 22.07 PROPANE 62.67 58.28 ISO-BUTANE .22 N-BUTANE - - ISO-PENTANE- - N-PENTANE - - HEXANES PLUS - - TOTAL IO0.O0 I00.00 GAS RATE- MCF/D 2,520 5,c~0 PRO~ANE CONTENT-BIO 1,051 2,288 TRANSPORTATION 1 ~ TO -'- CIGS r--! TO " CiPL I , COMBINED STREAM TO CIGS G~ ,) N AI.,Y~L~ ~_TU_AL COMPONENT NITROGEN 7.68 CARBON OtOXIDE 2 METHANE 66.00 ETHANE 11.47 PRO~N E 13.20 ISO-BUTANE .49 N- BUTANE .86 I80-PENTANE 03 N- F~ENTANE .03 HEXANES PLUS .0~ TOTAL IO0.00 GAS RATE-MCF/DAY 27,580 PROPANE CONTE)4T - BPO BPMMCF 87.8 % OF DESIGN 130.3% DESIG~ 572 29 74.78 868 .20 .Ol I00,00 45,320 3,055 67.4 MARATHON EXHIBIT 2 i i ii i ii i i i / , / / /' /' ATLANTICR ICI(FIELD ,/ / / ? I ! / / ,/ '' I I TION R ISW TEXACO PROP. PLATFCRM :! :l ;,IJl I I Ilellllll IIIIIIIIIIIiiiIIiiililL, g : I '-- -' ' / .. .~' - AREA OF ARCO / .z.L,,. I I --' ~ ~ ~ APPLICATION , j MIDDLER#1 y (-, - ~ ~ .. TD:7250/ ! ~ I I I J:l"~l m I mml~ ! m / I -',/ T.BST~I ·/ -' ' ADL187,75 TEXACO (OPER) " ' ~,,..~,,.,.,T ~. I 'IIl"IrIJ'ImIal' ,IlI' . .. / · A S WEST TRADIN(; 8A¥ I __ / :-,Ilil IIIIJ -6 ' ~ / '"' - -" ~ T~' ~z ~'~ A-I / != -- ' N '/' UNION I ' ;, TD 6S09 ,/ ~ ' _' ~"','.o. ~s~=' N"F ,'i' / - iT. ,-, - ~ '- ~ .,~1,11 --., E~ TINIA T£P- i Fi£LP L IIVII ~,,,,,,,,,,:, A-8 TD 7083 A'2 A- 0 TD; TD 3 A--4 '"' -3 T.D: I0,603'~ lliMlIIIIII T0.,I,6~7 ; 4 p I I I " IIIII - I TD' 7260' lllllllllllllllllll I IIIlIIII T. D .7 6~,5 -- ; JO UN I0 N- MA"'~'. E.T.B. ;¢- I T.D 10,'564 /I UNION - MA RAT HO ADL 18731 IIIIII___ BAY UNIT T9N RI3W ~ J7 ' J6 /// / ARCO //.~-~ McARTHURS'[.;, · TD: I/0,2~ / i / / / / / / EXHI BI T'A" TRADING BAY FIELD UPPER COOK INLET, ALASKA o I/~ 112 MILES JAN 3,1968 UIC PERMIT APPLICATION TRADING BAY STATE LEASE, TRADING BAY FIELD COOK INLET, ALASKA UNION OIL COMPANY OF CALIFORNIA RE'CE VED JUN 2 7 ].985 Alaska 0i{ & Anchorage u~cI UNDERGROUND INJECTION CONTROL PERMIT APPLICATION (Collected under the authority of the Safe Drinking Water Act, Sections 1421, 1422, 40 CFR 144/ READ ATTACHED INSTRUCTIONS BEFORE STARTING FOR OFFICIAL USE ONLY EPA ID NUMBER JT/A j ( A~icati~ a~ove~ Date Received mo day year mo day year Permit/Well Number Comments II. FACILITY NAME AND ADDRESS Facility Name Street Address Trading Bay State, Cook Inlet City ZIP Code Kenai Peninsula Borou IV. OWNERSHIP STATUS (Mark 'x') II1. OWNER/OPERATOR AND ADDRESS Owner/Operator Name Union Oil ~£ompany of £al~forn~a Street Address ~ ~ 909 W. 9th Ave., P.O. Box 6847 City ZIP C.od~ 'e 99502 V. SIC CODES Natural Gas) [~ A. Date Started r"i B. Modification/Conversion Operating VII. TYPE OF PERMIT REQUESTED (Mark 'x' andspecify if required) F'~ A. Individual r'"i B. Area n"] c. Proposed Number of Exist- Number of Pro- Name(s) of field(s) or project(s) lng wells posed wells 2 active - Tradi Field VIII. CLASS AND TYPE OF WELL (see reverse) A. Class(es) B. Type(s) ~ r~. if class is "other" or type is code 'x,' explain (enter code(s)/ (enter code(s)) I Trad i State D. Number of wells per type (if area permit) R-2 B. Longitude r"l Yes [] No Xl. ATTACHMENTS (Complete the following questions on a separate sheet(s) and number accordingly; see instructions) FOR CLASSES I, II, III (and ether'classes) complete and submit on separate sheet(s) Attachments A -- U (pp 2-6) as appropriate. Attach maps where required. List attachments by letter which are applicable and are included with your application: I certify under the penalty of law that I have personally examined and am familiar with the information submitted in this document and ali attachments and that, based on my/nqu/ry of ~ those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are sign/f/cant penalties for submitting false/nformat/on, including the possibility of f/ne and imprisonment. (Ref. 40 CFR 144.32) A. Name and Title (Type or Print) Gerry A. Graham, District Operations Manager - Alaska 'C. Signature E~A Fo(m 7~204 (2-84) ' B. Phone No. (Area Code and No.) (907)276-7600 D. Date Signed ii i Union Oil and Gas Division: Western Region Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 276-7600 unl,on G. A. Graham District Operations Manager Alaska District Dear Mr. Opatz: Oune 21, 1985 Mr. Gerald Opatz Environmental Protection Agency Region X 1200 Sixth Avenue Seattle, WA 98101 UIC AREA PERMIT APPLICATION; TRADING BAY FIELD, TRADING BAY STATE LEASE Enclosed is a complete Underground Injection Control Area Permit Application for all Class II, Type 'R', Enhanced Recovery Wells within the Trading Bay State Lease. Union Oil Company of California is the operator for the Trading Bay Field. As operator, Union Oil Company will be responsible for obtaining all UIC Rermits within the Trading Bay Field. Union Oil Company requests an area permit allowing us to add injection wells as needed. In the event a delay in issuance of an area wide permit occurs, individual emergency permits will be requested under 40 CFR 144.34 (a)(3). A significant delay in the production of crude oil will occur unless the emergency permits are issued. Attachment C-1 contains data on all wells within the boundaries applicable to this permit. A list of injection wells currently in operation may be found in Attachment H. ~. The described injection activities within the Trading Bay State Lease boundaries do not occur into, through, or above an underground source of drinking water. Union Oil Company, as allowed by 40 CFR 144.16(a), requests a waiver of the ERA requirements for area of review, construction, mechanical integrity, operation, monitoring, and reporting. All wells within the Trading Bay Field have been constructed and are being operated in accordance with Alaska Oil and Gas Conservation Commission regulations. Attachment A-1 and A-2 contain applicable AOGCC regulation. Your immediate action to this application will be greatly appreciated. If there are any questions or need of assistance, do not hesitate to contact Larry Cutting or Candy Lockwood at (90?) 2?6-?600. Very truly yours, Gerry A. Graham cc: Harold Scott - ERA, Seattle, WA C.V. Chatterton - AOGCC, Anchorage, AK Introduction This application is for an Area Rermit for all Class II, Type "R" Enhanced Recovery Injection Wells within the Trading Bay Field, Trading Bay State, Cook Inlet, Alaska. Injection activities within the Trading Bay Field do not occur into, through, or above an underground source of drinking water. 40 CFR 144.16 (a) allows for less stringent requirements applicable to this permit's area of review. The underground water within the confines of the Trading Bay Field, and one quarter mile beyond, are exempted aquifers for Class II activity as allowed by 40 CFR 147.102 Aquifer Exemptions, (b)(2)(D). 40 CFR 144.33 requires the area permit application to describe and identify by location existing injection wellsl however, the application may use a single description of wells with substantially the same characteristics. Such description may be found in Attachment H. All injection wells located within the boundaries of the Trading Bay Field are operated by Union Oil Company of California. Union Oil Company of California requests authorization to construct, operate, convert, and plug and abandon injection wells within the boundaries of the Trading Bay Field. All future injection wells proposed will meet the criteria described within this area permit. Injection activities within the Trading Bay Field are in compliance with Alaska Oil and Gas Regulations, and will continue to operate in compliance with said regulations and orders. Following are required attachments for Class II activity within the area of review. List of Attachments Attachment A: Area of Review Attachment A-1 Atta~¢hment A-2 Attachment A-3 AOGCC Order #57 AOGCC Regulations Legal Description of Area of Review Attachment B: Well Nap - Area of Review Map #1 Facilities, Wells and Area of Review Attachment C: Corrective Action Plan and Well Data Attachment C-1 Well Data Attachment D/E: Underground Sources of Drinking Water Attachment D/E-1 40 CFR 147.102, Aquifer Exemptions Attachment F/G: Geology Attachment F/G-1 Geological Report on Injection Zones and Confining Zones (Class II) Attachment H: Operating Data Attachment H-1 Attachment H-2 Operating Data for Injectors Analysis of Injection Fluids Attachment I: Formation Testing Attachment $: Stimulation Program Attachment K: Injection Procedures Attachment K-1 Naterflood Schematic - Monopod Platform Attachment L/M: Construction Procedures and Details Attachment L/M-1 Typical Drilling Program for the Trading Bay Field Attachment L/M-2 Typical Drilling Procedure for the Trading Bay Field Attachment L/M-3 Injector Nell Schematic Example Attachment L/M-4 Blank Completion Report Attachment O: Plan for Nell Failures Attachment R: Monitoring Program Attachment Q: Plugging and Abandonment Plan Attachment @-l Attachment ~-2 Schematic Plugged Nell Example Sample, Abandonment Report Attachment R: Financial Resources Attachment R-1 Financial Assurance Bond Attachment T: ,Exi,,stin§ ERA Permits Attachment U: Description of Business ATTACHMENT A AREA OF REVIEW Union Oil Company of California requests a waiver of the review requirement of 40 CFR 146.06 as allowed by 40 CFR 144.16 (a). Union Oil Company of California will use an area extending 1/4 mile circumscribing the Trading Bay State Lease boundary. Attachment A-1 is a copy of the Alaska Oil and Gas Conservation Commission Order 57, applicable to the Trading Bay State Lease. Attachment A-2 is a copy of the Alaska Oil and Gas Conservation Commission Regulations. Attachment A-3 is a description of the legal boundary which is the area of review for this permit application. · ATTACHMENT A- 1' STATE OF ALASI(A DEPARt'lENT OF N~'~TURAL RESOURCES DIVISION OF !.itNES A~ ~'IINER_~LS Alaska Oil and Gas Conservation Con~nittee 3001 Porcupine Drive Anchorage, Alaska '99504 Re: THE APPLICATION OF'UNION OIL COI.[PANY ) OF CALIFORNIA for an Order prescribing ). Field Rules for the develooment of the ) productive intervals within a prescribed ) area of the Trading Bay Field. ) IT APPEARING T~.=iT: Conservation Order #57 February 23, 1968 . . ~ 1. The Union Oil Company of California submitted an application dated January 9, 1968, requesting an order prescribing certain field rules in the Trading Bay Field. .2. .Notice of a public hearing on the matter ~¢as published in the Anchorage Daily News on January 12, 1968. 3. A waiver of personal service was received from each of the affected parties. 4. A letter dated January 26, 1968, with an attached letter dated January 16, 1968, from the applicant was delivered by hand on'January 26, 1968, and this letter ~.zith attachment requested certain changes in the proposed rules and in the definition of. the Hemlock Formation. .' 5. A public hearing was held in the City Council Chambers of the . Z. J. Loussac Library on January 26, 1968. The letter dated January 2~, 1968, with attahhment was read and.became part of. the record. Testimony in support of the application ~,ms presented by Union Oil Company of California and there were no protests. ' AND IT FURTNER APPE~-~ING THAT the Hemlock Fo~mnation exhibits iow or impaired per~neability due to the presence of numerous faults, variations in lithology, lensing of conglomerate beds :~,ithin the formation a:!d the occasional occurrence.of solid bitumen in the pore space. There are numerous separate pools not in communication with each other, but the erratic and unpredictable presence of separate pools makes it impractical to isolate each pool for development and administrative purposes. CONSERVATION OP~ER ~57 Page 2 ~ebruary 2~, !96S , AI~ IT FURTHER APP~*HIING Ti~T the flow rates from the Hemlock Pools are ,unpredictable and, in fact, many wells have had uneconomic flow rates. FU~,,~ER APP~\RING T}~T 40-acre spacing in the Hemlock Pool is necessary to develop the oil production not presently attainable under · 'the present.80-acre spacing order. A~ IT FURTIIER APPEARING T}~T the >[iddle Kenai Formation is made up of' many reservoir sands, some of which are capable 0f producing oil and some are capable of producing gas. . AA~ IT FURTF~ERAPP~ING T~tT the sands within the Middle Kenai ~Formation are very erratic due to pinching-out, !ensing, silting or shalinE-out, truncation and buttressing at regional unconformities and, as reservoirs, have limited and resPricted areas of accumulation due to faulting. The presence of many pools does not make it'feasible to isolate and define each separate pool for operational or administrative purposes. A~ IT FUXTHER APPEJ~ING T}~T 40-acre spacing in the pools of the ].[iddle Kenai Formation is necessary to effectively drain the many reservoir sands. AMD IT FURTHER APPEARING TH=iT 40-acre spacing will allow more efficient planning and operation of a secondary recovery program when such is started. ~OW, THEREFOXE, IT IS OFJPERE/) that the following field rules shall app,_y to the Trading Bay Field and shall supersede.all rules previously approved for this field. ., Rule 1. Area where Field P,u!es are aoolicable The area described as follows will be affected by these rules': .T9N - R!3~.'~ Section 3: Section 4: Section 5: · Section 8: Section 9: , . T10N - R13W, Sl,f Section 33: Section 34: CONSERVATION ORDER f757 Page 3 February 23, 1968 Rule 2. Definition of oools (a) The Hemlock Pool is defined as the intervals which correlate with the interval 5380' to 5720' in the Union Oil Company of California #1-A Trading Bay well. (b) The ~liddle Kenai Formation is d'efined as the sedimentary section above the Hemlock Formation,. Each sand in the Middle Kanai Formation in %~ich an oil wall may be completed will be an oil pool and each oil pool will be defined individually and all oil pools will be defined collectively as the l.~idd'le Kenai Oil Pools. Each sand in the Middle Kenai Formation in which a gas well may 5e corapletad will be ~ _~ne~ individuallY and all a gas pool and each gas ooo! will be d~=' ~ gas pools will be defined collectively as the Middle Kenai Gas Pools. , Rule 3. Co~a~ing!in% Con~ingling in the borehole of the ~'[iddle Kenai Oil Pools is hereby permitted. Co~ing!ing in the borehole of the Middle Kenai Gas Pools is hereby permitted. Commingling in the well bore of !.'lidd!e Kenai Oil Po'o!s and Middle Kenai Gas Pools is not permitted. Commingling of >fiddle Kenai Oil or Gas Pools with the Hemlock Pool is not permitted. Rule 4. Spac,i. n5 acreage ._ (a) Hemlock Pool: Not more than four (4) conpleted oil wells, shall ~ be allowed' 'in the Hemlock Pool on any governmental quarter section. ke_am Pools: Not ~ora than four (4) completed oil walls (b) Middle ' ~ ' shall be allowed in the Middle %enai Oil Pools on.any governmental quarter section and not more than,one (1) completed gas well shall ~.~z~dle Kenai Gas Pools on any governmental quarter be allowed in the ~'~ section. Rule 5. Soacin. g footage (a) Oi{ or gas wells may be como!etdd closer than 500 feet to any property line of a lease except that no oil well shall be completed closer than 500 feet from a lease line where o,,,~ershio changes and no gas well shall be completed c!oser, than 1000 feet from a lease line where ownership changes. ~ (b) No oil well in the Hemlock Pool shall be completed closer than 660 feet to any other oil well in the llemlock Pool. 'CONSE]~ATION ORDER #57 Page 4 February 23, 196B (c) No oil well in the i. Iiddle Kenai Pools shall be completed closer than 660 feet to any other oil well in the ;.fiddle Kenai Pools and no gas well in-the b'[iddle Kenai Pools shall be completed closer than '1000 feet to any other gas well in the Middle Kenai Pools. · Rule 6. Casing and ce~nentin%~, requirements (a) Surface casing will be landed at approximately 1000 feet to protect kno~.zn fresh water aquifers and it will be cemented ~,,~ith a sufficient volume to circulate cement to the sea floor. Casi?,g and control equipment ~.:ill be hydrostatically tested to 1000 pounds per square inch before drilling the shoe. ' (b) Production casing ~.~ill be landed at total depth and cemented with a sufficient volume to place cement above known productive sand intervals. The use of multi-stage cementing procedures will be permitted. Alternatively, a casing string may be adequately cemented at an intermediate point and a liner landed at total depth and cemented; sufficient volumes being used to place cement above kno?;n productive sand intervals. If a liner is run, sufficient cement will be used to fill the annular space Behind the liner to 100 feet above the casing shoe or, the top of the liner shall be squeezed ~.~'ith sufficient comment to provide at least 100 feet of cement bat~.~aan the liner and casing annulus. Casing and ~,;ell head equipment will be hydrostatically tested to 1500 pounds per square inch. Rule 7. Testing excention to Section 2159 At the request of an operator~ 'administrative approval of a testing period may be granted 'to permit existinS ~.~alls to produce as exceptions to Section 2159 of the Oil, and Gas Conservation Regulations. Such testing shall not exceed six (6) months for any well. ,. · .. · · CONSERVATION ORDER #57 Page' 5 February 23, 1968 · DONE at Anchorage, College, and Juneau, Alaska, and dated February 23, 1968 . Tf'omas R. ~.~arshalf, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee Concurrenca: ska Oil and Gas Conservation Conz~itte~ Dale Wellington, '~::ember ~' Alaska 0il and Gas Conservation Con"~-aittee · ................... ~<ar~ L. VonderAhe, ~.~embar Alaska Oil and Gas Conservation Co~nittea , Harry W. Kugl'er, Hember' ~ Alaska Oil and Gas Consarvation Committea : " ,,' , ,, ATTACH:,iEHT A-2 ~.~::.i~',~.~;':'~:':. ;:,~;'T', "~;..'_:5 ~.~'~; ."' :5'~'-". '7'. ' "..~ 2:"; ~¥~"~:~::?;:'.:' .'.?:': .~'.' "~.~: '"? 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'25. 26. 30. 35. 40. 45. 50. 55. 61. .65. 70. 75. ARTICLE 1. .DRILLING · · Permit to drill ... ............ . ............... Re-entry ................................. Changes to drilling permit . · · · · · . · · · o · · · . · Change of operator ............ .................. Bonding .................. ........ ... ........... Claims ..... ..... ....... ............ . ........... Casing and cementing ............. .... .......... Blowout pre.vention equipment ....,.. o ............ Well identification . ..................... . .... Sealing off strata ............ . ................ Deviation .............. ........... : ............... Well spacing Well site .surveys ..... ...... . ....... .... ..... .. Hydrogen sulfide .......... ..................... Records and reports ......................... ... Other wells in designated areas ...... ...... . .... · · · · ARTICLE 2. ABANDONMENT AND PLUGGING Section 105. '-'Abandonment and plugging requirements and notices ..... .... ....................... 120 Well band,anent rke ~ ~' ~ · a ma r ... ....... ..... ..... 140. Water wells ... .... .... ....... ...... ....... .... 170 Locati cleanup · ~ · · on ********** *****.************* ARTICLE 3. PRODUCTION PRACTICES Section 200. 205, 210. 215. 225. 230. 235. 240. 245. 250. 255. 260. 265. 270. Surface equipment ........ . ........... Notification of accidental ~ ~ ~1 or gas ~ Multiple completion of wells .................. Commingling of production ...................... Capacity .of gas wells .................... . .... Production measurement ................. . ....... Gas utilization ... ..... . ....... · ............... Gas-oil ratios . ........ . ...................... Common production facilities ................ Disposal of salt water and other was[~s ....... Equitable distribution of production .......... Illegstil productih i°n ......... . ...... ..~.~ ..... . . Automa c s ut- n equipment . ............... Bottom hole pressures .. ......... .......... .... Page NO. 1 3 3 3 3 4 4 6 8 9 9 12 13 13 14 14 15 17 17 18., 19 19 20 20 20 20 22 22 22 23 23 23 23 24 ARTICLE 4. REPORTS Section 300. 310. 320. Request for addition information .............. Books and records ................ · ............. Forms to be used .............................. ARTICLE 5.' ADDITIONAL RECOVERY METHODS ,. Section ~ · . 400. Application for 'additional recovery ........... 410. Injection wells ........................... 430. Records and reports .~.~ ~ . . . ARTICLE ,. Section .. 6. GENERAL PROVISIONS 505 510 515 520 525 526 530 536 537 538 54O 545 55O 555 557 57O . Scope of regUl, ations ........................ · Commission office, hours ~nd sea~ .... . U.S. Government leases ................... .. Field and pool regulation ~nd ~ia~sification .~ . Forms upon request ............................ · Fire hazard ..................... · Cooperation ~i~ o~r par~ies .~ .' .' ''' . Geologic data and logs ..................... . Public and confidental wel~ in~-orma~ion · Naming of fields and pools .................... . --Hearings..... ............................. · Public mailing .... · Oaths ..... , ................................... · Orders ........ · .............. '. ................. · Subpoenas.., ......... .... ............. . .......... · Definitions .... ; .............................. Page No. 24 24 24 25 26 26 27 27 28 28 29 29 29 29 3O 31 31 32 33 33 33, 33 ii Register 74, July 1980 MISCELLANEOUS BOAFDS, CfkM~SSIONS 20 AAC 25.005 TITLE 20. MISCELLANEOUS BOARDS, COMMISSIONS CHAP.TER 25. ALASKA OIL AND GAS CONSERVATION CO~'4MISSION " '. Editors Note: '" This chapter is based 'on' the former regulations of the Divi- .... '"~';'::~"'~ '~:!sion of Oil and Gas Conservation formerly located in 11 AAC .; ,.,.-., ..:.22. . · . Article .. 1. Drilling (20 AAC 25.005 -- 20 AAC 25.075) 2. Abandonment and Plugging (20 AAC 25.105 -- 20 AAC 25.170) 3. 'Production Practices (20 AAC 25.200 -- 20 AAC 25.270) 4. Reports (20 AAC 2.5.300 -- 20 AAC 25.320) 5. Additional Recovery Methods (20 AAC 25.400 -- 20 AAC 25.430) 6. General Provisions (20 AAC 25.505 -- 20 AAC 25.570) .,-~. ;.'~ ARTICLE 1. DRILLING. : ... Section 0. 05. Permit to drill · · 10. Re-entry 15. Changes tO drilling permit · 9_0. Change of operator 25. Bonding 26. Claims 30. Casing and cementing 35. Blowout prevention equipment 40. Well identification 45. Sealing off strata 50. Deviation 55. Well spacing 61. Well site surveys 65. Hydrogen sulfide 70. Records and reports 75. Other wells in designated areas · 20 AAC 25.005. PERMIT TO DRILL. (a) An application for a Permit to Drill (Form 10-401) must be submitted for approval before the drilling,· redrilling or deepening of the 'follo%¢ing types of wells (1) exploratory wells; ' (2) development wells; · . (3) service wells; and (4) stratigraphic test wells. (b) An application for a Permit to Drill (Form 10-401) must be submitted for approval before the re-entry of an abandoned wel 1. -1- Register 74, July 1980 MISCELLANEOUS BORADS, fI~,~SSIO~S 20 AAC 25.005 (ci The application' for a Permit to Drill must be accompa- nied by' the following (1) . a: fee of. ~$100 payable to the State of Alaska, De'partm~nt 'of Revenue; (2) a plat showing the proposed surface and bottcm hole location; before the completion, suspension, or abandonment of the well, a survey plat certified by a registered land survey- or showing the precise surface location must be submitted; only the first well drilled from a fixed platform or a multiple well site must have a cer'tified survey; (3) a diagram and description of the BOP equipment to be used and the information required in sec. 3,5(c) (2) of this chapter; (4) the complete proposed casing and cementing program as required in sec.. 30 of this chapter; and (5) a diagram and description of the diverter system to be used as specified in sec. 35(~) of this chapter, unless this requirement is waived by the commission. (d) Any well which is not to be intentionally deviated must meet the requirements of sec. 50(a) of this chapter. (e) Any well which is to be intentionally deviated must meet the requirements of sec. 50(b) and (c) of this chapter. (f) Each offshore location must meet the requirements of sec. 61 of this chapter. (gT" Each hole drilled below the conductor casing, unless drilled solely to straighten the original hole, sidetrack junk, or correct mechanical difficulties, is a separate well requiring a Permit to Drill. ! (h) Each lease must have a different and distinct name. (i) Information must be submitted regarding the ~ond as re- quired in sec. 25 of this chapter. (j) After approval by the commission, the Permit to Drill (Form 10-401) may be referred to as the "drilling permit" in this chapter. :'o ., ~ (k) If dril.ling is not commenced within 24 months after the approval date, the drilling permit will expire2 (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 AS 31.05.090 -2- Register 74, July 1980 MISCELLANEOUS BORADS, CC~4M!SSI©NS 20 AAC 25.0!0 20 AAC 25.025 · . .. 20 AAC 25.010. RE-ENTRY. (a) If a suspended well ils to be re-entered, the operator shal 1 advise the commission and request approval on the form entitled Sundry Notices and Reports on Wells (Form 10-403). (b) If an abandoned well is to be re-entered, an applica- tion for a Permit to Drill (Form 10-401) must be submitted as required by sec. 5(b) of this chapter. (Elf. 4/13/80, Reg. 74) Au thority:. AS 31.05.030 20 AAC 25.015. CHANGES TO DRILLING PERMIT. (a) For any proposed change in a drilling permit, before the start of drill- ing operations, an operator must comply witk the following (1) notify .the commission of the prop'osed change; (2) a new application for. a Permit to Drill (Form 10-401) may be required but no additional fee is required; (3) a revised plat as required by sec. 5 of this chapter must be filed if the surface location is changed; and ~. . . (4) be approved by the commission. (b) For any proposed change-in a drilling permit, after drilling operation~ have started, an operator must comply with the following (1) to change the bottom hole location, a new Form 10-401 accompanied by a fee of $100 must .be submitted to the commission for approval; and (2) requests for other changes must be sukmitted to the commission for approval on the form entitled Sundry Notices and Reports on Wells (Form 10-403); in cases where prompt approv- al is needed, verbal approval may be obtained from the commission or its representative; if verbal approval i's obtained, a descrip- t_ion of the approved change, the ..name of the commission member or its representative that provided verbal approval, and the date of the approval must be included on the Form 10-403 submitted. (Elf. 4/13/80, Reg. 74 ) Authority: AS 31.05.090 · ., 20 AAC 25.020. CHANGE OF OPERATOR. If an operator wishes to.-relinquish his role as operator, he shall submit a written statement to.the commission setting forth the facts, designating the new operator, and requesting approval by the commission. The newly designated operator shall notify the commission in writing of his acceptance of the obligations as operator and shall fur- nish a bond as provided for in sec. 25 of this chapter. Approval by the commission of the change constitutes the release of the former operator's bonding obligation. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.025. BONDING. (a) Except as otherwise provided in this section, the commission will require from the operator an .appropriate bond to insure that each well is abandoned or repair- ed in accordance with secs. 45, 105, 120, 140, and 170 of this chapter. .o .. . ~u ,, ~.. (.-~) n :~s ~,,,' ............ · re~ 'ih ~a) -ell hN~'~'~'z-:'- :~ . :,'.', -~:: :-' ' S.~ ~~ not ~n ~avo~ o~ '~ "'" · .~i'l'l :~' ' ..... '""-~:' ~"~'' .......... " ' ''" ' - - S~s:f~S ~= '~'~t-. a co=po=~t8 ~"~"' ~.' ~' ' '~ surety authorf~ed to do 1' ' u~l the than- ' ' ". .... ~ ..~ ~,. ~ . .~.., .~pffsved '~ the commission and the ~nd xs ~e'lea~ed 'b~ '[~e '~Sm~l'sS[on-' is not ~k~, ~o ~S~'6:~'~ ~ 'b6"~a (~lm l'n'e aOmml~16'n. . ~/13/80', '~'. %~.) - : (Elf : 0 -il% ...... · ...... · · ...... ff~ ' ~onment.of ~ "'~-~ ~%-= ':'~' -"~. ..~gmm~ss%.on :.approval of the aRan- .... e&~ 0~ ~ e re ....... :- ' · ":' · ~-- ' . ..... :... , ...~; lease ol ~ ~o ..... 25 of this ~ha'te " ,:.,, ~r~._~.~.' a ~ ..,~ ::~ nd,..requ~red by sec .-. · :.-. ~P-.~, ~st~tules ~ 'Y~sO ...... ..... : .... ' ~ " ment, b~t does '~Qt ~'~ll~e~A -~- -~7~ ~' --: ~e~ o~ proper abandon- ~ = =- ~erator o~ fur{'- ' commission ~ ' ' : .' . .".. ':..." -. ~., ~ . . her .claim b the . fte~ the ~andonmenh, for the P~~t tb ~rl :.:-,r _~,.~.zng2u~d on.the application .... ,_,: ~,.i~_~o=~ z0-~: _ ~ules, each uas~ng program muSt be d~signed to sul~ao e ........ ,, .~... sate opera,lng c6~itiohs for · . ~easured~de~D. ' · . ..... ~al l~re; , another} (3) ~&~% ~l~[i°h 6f fl6id~ from one stratum to (~) ~=~' =...~ ....., , . . ,,.. . i re cb~trbI of QeI1 ~essures encountered; .(5 :;r~ p=ote~ ,..J~ [ha~ subs effects ~ith ~ ~8~j~fSa~t] i idence and freezeback ~) ~~ ........ . .... · -' ~b~a~lH~ff{o~ of ~ff~atJ beJring fresh- wa ter~ and " ..... , : : · nex~ string of considered' I~H~ =...,. ,:7.~ .. _ faL weI1 contro' , .... ~~, r ........ '- , 1 should -...:. ~......w~...or~%%pn r . ., . be pressures; CaSlh~ ~ehffh~ d~6Ph'~ ~_.~%}U~e:..-~g~adle%ts,. formation - = .... , =~u proposed total depth. (b) T~e j~'~n~' ...;...; ..... . Q~.'req6irem6h~ ~:~l'~' to th6 different types of casing ~Ji~ Ii~fdd Register 74, July 1980 MISCELLANEOUS BOARDS, CC~k~SSIONS .20 AAC 25.030 (.1) Conductor casing: (A) one or more strings may be required; and ' (B) this casing may be set by drilling, driving ~ or jetting; if the hole is drilled, a sufficient quantity of cement must be used to fill the annular space to the surface ...or mud line. (2) Surface casing: (A) setting depth must be below the base of freshwater sands or below the base of permafrost at a depth that will insure good anchorage; (B) must be set into a competent stratum with sufficient cement in the annulus to cir. culate to the sur- face; if offshore, sufficient cement must be used to bring the top of cement either to the mud line or to at least 1500 feet above the surface casing shoe and at least 200 feet inside the conductor casing; if cement does not circulate to the surface wheh 'required, 'the annulus must be cemented before drilling ahead or initiating tests; and (C) after drilling approximately 50 feet of new formation, a pressure test must be obtained either by test- ing to formation leak-off or by testing to a predetermined. equivalent mud weight to aid in determining a formation fracture gradient; the results of' this test and any subse- quent tests of the formation must be recorded on the driller's log. (3) Intermediate casing: (A) must be set when required to maintain well control; (B) under normal conditions drilling may continue until the mud weight has been. increased to a point not exceeding 0.5 pounds per gallon less than the equivalent mud weight of the most recent pressure test of the formation below the surface casing shoe; and (C) a sufficient quantity of cement must be used to provide annular fill-up to a minimum of 500 feet above all hydrocarbon zones and abnormal pressure intervals; in cases where zonal coverage is not required, a minimum fillup of 500 feet' of cement above the casing shoe is required. (4) Production casing: (A) may be set through or just above the produc- tion interval; (B) cementing practices must be the same as that for intermediate casing strings; and (C) casing must be tested in accordance .with (e) of this section. . (5) Liners: (A} may be set as an intermediate or production string; (B) a cemented liner must have a minimum of 100 feet of cemented lap with the next larger casing string; other cementing practices must be the same as .that for intermediate casing; and Register 74, July 1980 MIS~r.~ANEOUS DOAPDS, CLT-~SSIONS 20 AAC 25.030 20 FAC 25.035 (C) before drilling ahead, cemented liner and lap must be tested by a fluid entry or pressure test, in accord- ance with (e) of this section, to determine that a seal between the liner top and next larger string has been achieved; the test must be recorded as required by sec. 70(a) (1) of this chapter. (c) A cement plug or shoe, in the casing strings required by (b) of this section, must not be drilled until a. minimum compressive strength of 300 psig at bottom hole conditions has been attained according to the manufacturer's cement strength tables for the particular cement being used. Casing must be tested before drilling ahead in accordance with (e) of this section. .. (d) Within permafrost intervals, fluids which have a freez- ing point above the minimum permafrost temperature must not be left in the annulus between any two strings of pipe or inside the casing upon completion. or suspension of a well without commission approval. (e) Pressure Testing of Casing and Surveys: ". (1) with the exception of the conductor casing, before drilling out the casing or liner after cementing, all casing strings, liners and liner laps must be tested to a surface pres- sure of 50 percent of the minimum internal yield strength of the casing or 1500 psig, whichever is lower. If the pressure de- clines more than 10 percent in 30 minutes, or if there are indi- cations'"of improper cementing such as lost returns, cement chan- neling or mechanical failure of equipment, corrective measures must be taken until a satisfactory test is obtained; and (2) the operator shall report on the form entitled the -Monthly Report of Drilling and ,Workover Operations (Form 1~7404) the test results and any remedial measures taken. (f) Variances to this section to al low for special or unusual conditions 'such as cable tool drilling, air or foam drilling, will, in' the commission's discretion, be approved by the commission upon request by the operator. (Elf. 4/13/80., Reg. 74) Authority: AS 31.05.030' 20 AAC 25.03,5. BLOWOUT PREVENTION EQUIPMENT. (a) General Practice (1) BOP equipment and its use must, as a minimum, be in accordance with American Petroleum Institute Recommended Practices 53, "Blowout Prevention Equipment Systems,' except as modified by this section; (2) all equipment must be in good Operating condition at all times and must be adequately protected to insure reliable operation under the range of weather conditions expected at the specific location; and --6-- Register 77, April 1981 MISCELLANEOUS BOARDS, C~-~ISSIONS 2'0 AAC 25.035 (3) blind rams must' be function tested each trip but not more than once each day and'all other BOP's must be function tested each. day. (b) Surface Hole Diverter System: (1) before drilling below the conductor string, at least one remotely controlled annular preventer and flow diverter system must be installed; the annular preventer must permit the diversion of hydrocarbons and other fluids; the low Pressure, high capacity diverter system must provide at .least the equiva- lent of a six-inch .line with at least two lines venting in di'f- 'ferent directions to insure safe downwind diversion and must be_ designed to avoid freezeup; these lines must be equipped with full-opening butterfly type valves or other valves approved by the commission; a schematic diagram, list of equipment, and operational procedure for the diverter system must be submitted for approval with the application for a Permit to Drill (Form 10-401); and .. " (2) the commission will, in its d'iscre~i6n, waive the requirements of (1) of this subsection wher'e drilling experience in the near vicinity indicates they are unnecessary. .. · .. (C) Blowout Prevention .Equipment:' (1) before drilling below the surface .casing, and until completed, a well must have remotely controlled'BOP's; the working pressure of the BOP's and associated equipment must exceed the maximum potential surface pressure, except that the annular preventer need not have a working pressure rating greater than 5000 psig;, the BOP stack arrangements must be as follows: (A) API 2M, 3M, and.5M stacks must have at least three preventers, i.ncluding one equipped with pipe rams that fit the size of drill pipe, tubing, or casing being used, one with blind rams, and one annular type; (B) API 10M and 15M stacks must have at least four preventers, including two equipped with pipe rams with at least one fitting' each size of drill pipe, tubing, or casing being used, one'with blind rams. and one annular type; (2) information submitted with Form 10-401 must in- clude the maximum downhole pressures which may be encountered, the maximum potential surface pressures, the criteria used to determine, these pressures, and a well-control procedure which indicates how the preventers will be used for pressure control operations if the maximum surface pressures should exceed the rated working pressure of the annular preventer; (3) the hydraulic actuating system used must provide sufficient accumulator capacity to supply 1.5 times the volume of hydraulic fluid necessary to close all BOP equipment; the system must also 'be capable of maintaining a minimum remaining pressure of 200 psig above the required precharge .pressure when all BOP's · are closed with the primary power source shut off; an accumulator backup system, supplied by a secondary power source independent of the primary power source, must be provided with sufficient --7-- · Register 77, April 1981 MISCF. L~NEOUS BOARDS, C~v~ISSIOb~S 20 ~2~.C 25.035 20 ~AC 25. 040 capacity to actuate ali ~OP equipment; (4) in addition to the primary controls on the accumu- lator equipment unit, at least one operable remote BOP control station must be provided; this control station must be in a readily accessable location on or near the drilling floor; a device to avoid unintentional closure must be provided on al! ..~: remote blind ram closing' controls; ... ~',~'-~'-~'' : (5) the BOP equipment must include a drilling spool with side outlets (if not on the blowout preventer body) , a minimum three-inch choke line and a minimum two-inch choke manifold, a kill line, and a fillup line; the drilling string must contain full opening valves 'above and immediately belo'~ the kc-1 ly during all circulating operations using the kelly, with the necessary valve wrenches conveniently located on the rig floor; and .. (6) two emergency valves with rotary subs for all connections in use and the necessary wrenches must be conveni- ently located on the drilling floor; one valve must be_ an . inside spring-loaded~ ~or flo~ activated type; the second va!ye must be a manually operated ball type, or equivalent valve. (d) Testing: (1) all ram-type BOP's, kelly valves, emergency valves and choke manifolds must. be tested to the rated working pressure or to the maximum surface pressure as required to be submitted in (c) (2) of this .section; annular preventers must be tested to not less than 50 percent of the rated working pressure; these tests must be made when the BOP equipment is installed or changed and at leas~"'once each week thereafter; test results must be recorded as required by sec. 7..0(a) (1) of this chapter; (2) to insure that minimum standards are achieved, the operator shall perform' the recommended tests for BOP closing units specified in sections 5A and 5B of API RP 53; and . ! (3) sufficient notice of certain SOP equipment tests must be given so that a representative of the commission can witness these tests; these tests will be specified in the drill- ing permit or by notice to the operator. (e) BOP equipment for cable tool drilling activities must have prior commission approval and must be in accordance %;ith good established practice with all equipment in good operating condition at all times. (Elf. 4/13/80, Reg. 74; am 2/22/81, Reg. 77) ~ · .. Authority: AS 31.05. 030 20 AAC 25.040. UELL IDENTIFICATION. (a) Every drilling well must be identified by a sign posted in a conspicuous place on or near 'the derrick but not more than 100 feet from the well. For suspended or producible wells, the well sign must be at thc wellhead for multiple housed wells or on the wellhead building for single housed wells. The sign must be of durable construc- -8- Register 74, July 1980 MISCELLAneOUS BOAPDS, CC~.~IlSSIO~.;S · · 20 AAC 25. 040 20 $.~,C 25. 050 tion, large enough to be legible under normal conditions at a distance of 50 feet, and maintained in legible condition. Each-- sign must show .. -. - (1) the name of the lease on which the proposed objcc- , tive is located; ', .'" (2) the name of the lessee;. ~ (3) the owner or operator if different from the lessee; (4) the well number; (5) the well surface location by quarter sec~ on, section, township and range; and (6) the drilling permit number '('for drilling wells). · . (b) The name 'of each lease or unit must be different and distinct. " · (c) The wells o.n each lease or property must be numbered in a nonrepetitive, logldal, and distinct sequence. (d) Each well will be assigned an API well number by the commission when the drilling permit is approved. -. (e) For platforms or multiple...wel'l 'drill sites, the infor- mation required in (a) (1), (2), (3), and (5) of this section may be posted on one sign for each lease on the platform or at the main entrance to the drill site. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.045. SEALING OFF STRATA. (a) During the dril!- ing of any well permitted under sec. 5 of this chapter, the contents of oil, gas, and water strata penetrated must be sealed to prevent them from passing into other strata. (b) Ail freshwater and water of present or'probable value for domestic, commercial, or livestock purposes must be confined to their respective strata and adequately protected by methods approved by the Commission. Precautions must be taken in drill- ing, completing, producing, and abandoning operations to guard against loss of any freshwater from the strata in which it occurs, and the contamination of any freshwater by oil, gas, or objectionable water. .' (c) Except for fluids removed by production from the com- pletion interval, a]l fluids encountered in a well must be con- fincd to their respective strata. (.Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.050. DEVIATION. (a) Any well which is not intentionally deviated must be {1) drilled as close to vertical as is possible using normal, acceptable drilling techniques, 6xcept that deviation is permitted for short intervals to straighten the hole, sidetrack -9- Register 74, July 1980 MISCELLAb~OUS DOARDS, CC~-~.~ISSIONS 20 F&.C 25.050 . . junk, or correct mechanical difficulties; (2) surveyed to determine the inclination from the vertical with surveys starting at 500 feet and no more than 500 feet apart to total depth; and (3) surveyed by a complete continuous multishot direc- .- tional survey if the surface location is less than 660 feet from a lease line where ownership changes or less than 660 feet from · any other vertical or deviated well; the survey must be taken at intervals not more than 100 feet apart, beginning within 100 feet of the surface. ~ (b) Any well which is to be intentionally deviated must meet the following criteria · (1) the application for the Permit to Drill (Form 10-401) must (A) state the surface and proposed producing interval locations; (B) include a plat drawn to a scale of 1 inch ~ equal to 100 feet showing the path of the proposed well bore in relation to '~11 other vertical and deviated well bores which are within ·a distance of 200 feet from the proposed well bore and the true vertical depths must be shown at frequent intervals along each well bore; (C) list the affected operators and show that each has been furnished a copy of the application by regis- tered mail, or state that the applicant is the only affected operator; and (D) includ~ a neat and accurate plat of the lease and of all affected leases showing the names of all affe_~ed op~'rators and the surface and proposed producing interval locations of the well and all other wells within one-half 'mile of any portion of the new well; the plat must be drawn .to a scale which will permit easy observation of all perti- .~.. nent data; (2) items (b) (1) (C) and (D) of this section are not applicable to any well drilled on land subject to an approved unit, except that wells drilled near the unit's exterior boundary must conform with sec. 55 of this chapter; (3) if drilling is in progress, the operator shall notify the commission immediately of his intention to deviate and then .may proceed at his own risk; when an operator follows this procedure, he must file an application as soon as practicable and obtain another drilling permit as required in sac. 15 of this chapter; (4) if the applicant is the only affected operator and the commission does not object to the application, the commission will approve it immediately; if there are other affected opera- tors, the commission will hold the application for 10 days unless a letter of non-objection from each affected operator has been filed with the commission; if objection from an affected operator to the proposed deviation is received within the 10-day period, or if the commission does not approve the proposed deviation, thc -10- Rsgister 74, July 1980 MISC~IANE©US BOAPDS, OC~.~ISSI©~S .20 AAC 25.050 application will be subject to public hearing; if no objection from either affected operators or the commission is interposed within the .10-day period, the application will be approved and a drilling permit issued by the commission; and (5) the operator must run a complete, . continuous, multi-shot directional survey at intervals .not more than 100 feet apart, beginning'within 100 feet of the surface. · . . .. · (c) Within 30 days after the completion, a~andonment, or suspension of the well, a complete copy of each inclination and directional survey obtained must be filed with the commission. A composite survey may also be filed· if the operator feels this would better represent the well course. If a composite survey is filed, the operator shall specify the portion of each. survey used in the composite. · (d) If the prop~osed · or fina 1 locition 6f the produci'ng interval of the deviated well is not in .compliance'with sec. 55 of this chapter or other rules of the commission applicable to the reservoir, the'operator may apply for an exception which will be handled in accordance with sec.. 540 of this chapter. (e) For the purpose of this section, an affected operator is an owner in a quarter section directly or diagonally off- setting any quarter section upon which the operation is proposed to be conducted. In areas where irregular shaped leases are to be drilled the commission will determine who are the affected operators. · (f) Inclination a~d directional survey reports must con- tain, when applicable, the following · . (1) name of surveying company; (2) name, title,, and signature of person actually per- forming the survey; (3) the date on ~hich ~he survey was performed; (4) type of' survey conducted; (5) method used in calculating survey; (6) a complete identification of the well so as to indicate the name of the operator, the lease name, the well number, and field name; (7) the depth interval over which the survey was con- ducted; (8) a certified plat showing the su~oface location, the plotted well course, and the nearest lease lines or unit lines; and · .' (9) a tabulation of the depth and drift angles for all inclination survey points. . · · (g) Certification requirements for survey reports are as follows: (1) each inclination survey report as required in (a) of this section must be accompanied by a certified statement of Register 74, July 1980 MISCELL~OUS BOARDS, CC~-~.IlSSiONS 20 A~C 25.050 20 AAC 25. 055 the operator or .someone acting at his direction on his behalf that .the well was 'not intentionally deviated from the vertical; (2) each directional survey report as required in (b) of this section may be certified to by the person }:aving personal knowledge of the facts, by execution and da ting of the data compiled; and ......... (3) a certified plat as required in (f) (8) of this section. , · (h) The commission may require the submittal of the orig- inal film, time sheets, charts, graphs, discs, and other data used to compile the survey'. (i) The willful filing of a false or incorrect inclination survey or directional survey is grounds for penalty actions under the applicable statutes. (Elf. 4/13/80, Reg. 74) · Authority: AS 31. O~. 030 20 AAC 25. 055. '"'WELL SPACING. (a) In proven oil and gas fields, the establishment of drilling units and a spacing pattern will be governed by special field rules adopted in accordance with sec. 520 of this chapter. In the absence of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following applies (1) the surface location of an exploratory .well must not be located closer than 500 feet to any property line of the lease on which the well is located, nor may any hydrocarbon reservoir be opened to the' well bore closer than 500 feet tc any property"line of the lease on which the well is located; (2) where oil has been discovered, not more than one well may be drilled to that..pool on any governmental quarter section or governmental", lot corresponding to it nor may any well be drilled to that pool on a .governmental quarter section or governmental lot corresponding to it which contains less than 150 acres, nor may any hydroCarbon reservoir 'be opened to the well bore closer than 500 feet to any property line nor closer than 1,000 feet to any well drilling to or capable of producing from the same pool; 'and (3) where gas has been discovered, not more than one well may be drilled to that pool on any governmental section or governmental lot corresponding to it nor may any well be drilled to that pool on a governmental section or lot corresponding to it which contains less than 600 acres, nor may any hydrocarbon reservoir be opened to the well bore closer than 1,500 feet to any property line nor closer, than 3,000 feet to any well drilling to or capable of producing from the same pool. (b) An application for exception to the provisions of this section or any spacing order of the commission must set out the names of all owners and of all operators of governmental quarter sections directly and diagonally offsetting the quarter section -12- Register 74, July 1980 MISCELLANEOUS BOARDS, CC~.~.~ISSI©~;S 20 AAC 25. 055 20 AAC 25. 065 where the 'oil well is located or the names of all.owners and of all operators of governmental sectionsi directly or diagonally offsetting the section where the gas well is located. A plat must be attached, drawn to a scale of one inch equaling 2640 feet or larger, showing the property for which the exception is ~':':'"~'sou~ht, all other co'mpleted and drilling wells on the property and all adjoining properties and wells. The application must be verified by a person acquainted with the facts, stating that all facts are true and that the plat correctly portrays pertinent and required data. The applicant for exception must give notice of that filing by registered mail to all owners and to all operators noted above and furnish the commission with a copy of the notice, date of mailing, and the addresses to which the notices were sent. The applica'tion for exception will be handled in accor- dance with sec. 540 of this chapter.' (Elf. 4/13/80, Reg. 74) .Authority: AS 31.05.030 .. 20 AAC 25.061. WELL SITE SURVEYS. In offshore areas where the sea floor conditions or the presence of shallow geo- logic hazards or hydrocarbons are unknown, the operator shall conduct the well site surveys as may be required by the com- mission. These surveys and an analysis of the geologic hazards must be submitted to the commission as an attachment to the application for. a' Permit to Drill (Form 10-401). (Elf. 4/13/80, Reg. 74 ) Authority: AS 31.05. 030 20 AAC 25.065. HYDROGEN SULFIDE. (a) When hydrogen sulfide gas is encountered in the drilling of any well, the operator must notify the Alaska Oil and Gas Conservation Commis- sion within 24 hours. · · (b) When a well is to be drilled in an area where a forma- tion to be penetrated is known to contain hydrogen sulfide gas or if hydrogen sulfide is encountered while drilling, each operator must meet the requirements of API RP 49 "Safe Drilling of %;ells Containing Hydrogen Sulfide." (c) Where there is an insufficient history of drilling in an area to know if hydrogen sulfide exists, the commission will specify on the dr~illing permit that the operator must comply with the minimum requirements for detedtion monitoring, contingency and control, and training as follows: (1) detection monitoring: (A) an automatic hydrogen sulfide monitor must be installed and have a combination visual and audible alarm system located where it can be seen or heard from all parts of the location; · (B) the automatic hydrogen sulfide monitor must have a minimum of two probes, one at the shale shaker and one on the bell. nipple; and · -13- Register 74, July 1980 MISCELLanEOUS BOP/DS, CC~,~IlSSIONS 20 AAC 25.065 20 AAC 25.070 (C) in addition to the automatic hydrogen sulfide monitor, at least three hand-operated, bellows type detec- tors with an adequate supply of extra detector tubes must be :. .. available at the drill site; .' (2) contingency and control: · .~. .' (A) hydrogen sulfide scavenger material for the .drillin~ mud must be available on or near the location in '[?.'~" ." good condition and in sufficient quantity to adequately treat the mud system should hydrogen sulfide be encountered; (B) detailed emergency operating procedures must be defined and posted to insure the safety of. all personnel should hydrogen sulfide be encountered; (C) detailed step-by-step remedial procedures must be developed and posted to cover emergencies while drilling or tripping; and (D)" personnel protective e°quipment must be avail- able at the well site. · (3) all drill site supervisors must be trained for operations in the presence of hydrogen sulfide. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.070. RECORDS AND REPORTS. (a) The operator of each drilling well shall (1) keep a detailed accurate written daily record of the well operations which must be available for inspection at reasonable times by the commission or a representative of the commission (A) at the well before completion, abandonment, or suspension; and (B) in Alaska for five years after completion, abandonment, or suspension, upon 30 days written notice; (2) ' file with the commission, on or before the 15th of each month, the Monthly Report of Drilling and Workover Opera- tions (Form 10-404), setting out an accurate summary of the daily record of well oper. ations during the previous calendar month; and (3) file with the commission within 30 days after compietion, abandonment, or suspension of the well (A) a complete well record on the $;ell Completion or Rec°ompletion Report and Log (Form 10-407); (B) a detailed report of all drill stem tests and produc[ion tests including time intervals, quantity and description of all recovered fluids, and pressure data; and (C) a cqmplete well history. (b) A well is considered completed, abandoned, or suspended on the date significant well operations cease. The commission will, in its discretion, approve a subsequent date upon which a suspended well will be considered completed, abandoned, or sus- pended if the operator shows that significant well operations will be resumed within a reasonable time. -14- Register 74, July 1980 MISCELLANEOUS BOARDS, C~-D~SSIONS 2o ;.;..c 20 AAC 25.105 (c) In this section, "significant well operations" means those well 'operations conducted in accordance with good oil or gas field practices. (Eff. 4/13/80, Reg. 74) · Authority:' AS 31.05. 030 '20 AAC 25. 075. OTHER WELLS IN DESIGNATED AREAS. There .are areas in the state where drilling operations could unex- pectedly encounter oil, gas, or hazardous substances at shallo'~ depths. When the commission obtains sufficient evidence to define a specific area and the approximate depth range of the substances, it will issue an order that'will present the evi- dence, define the area, and stipulate a drilling depth. After the issuance of such an order, any well d~illed in the defined area for any purpose, that exceeds the stipulated depth will require a drilling permit and may be subject to the other recuire- ments of this chapter.~..~.., (Eff. 4/13/80, Reg. 74) " Authority: AS 31.05. 030 ..ARTICLE 2. ABANDONMENT AND PLUGGING. Section · 105. Abandonment .and plugging requirements and notices 120. Well abandonment marker 140. ~a ter wells ' 170. Location cleanup 20 AAC 25.105. ABANDONMENT AND PLUGGING REQUIREMENTS AND NOTICES. (a) Each well must be abandoned within 90 days fol- lowing the expiration of the lease unless an extension of time is granted by the commission. The' commission will, in its dissre- tion, grant an extension upon receipt of the form entitled Sundry Notices and Reports on Wells (Form 10-403), on which is specified (1) a request for a specific time extension; and (2) the reason an extension is necessary. (b) Each well to 'be abandoned must be plugged by the opera- tor who is responsible for the well, so as to prevent fluid migration within the wellbore. Notice of plugging or abandonment must be filed according to (c) of this section. Unless a differ- ent program is approved by the commission, the minimum require- ments for abandonment of a well are as follows: (1) a cement plug not less than 100 feet in length must be placed immediately above each hydrocarbon-bearing forma- tion open to the well bore; (2) a cement plug of at least 50 feet must be placed to extend to the surface of the ground in each hole for onshore wells and to the mud line in offshore wells; (3) the intervals below and between plugs must be filled with fluid of sufficient density to equal or exceed the fluid density utilized to drill that interval; -15- · Register 74, July 1980 5tlSCEIJ~ZNEOUS BOARDS, CC~.DIlSSIO);S 20 LAC 25. 105 (4.) .'in uncased holes, in addition to the requirements of (1) through (3) of this subsection (A) ' a cement · plug not less than 100 feet in length must be placed from 50 feet below the deepest exis- ting casing shoe to 50 feet inside the casing; (B) a cement plug not less than 100 feet in length must be placed across the top of the stub where the casing is cut and pulled; and (C). a cement plug not less than 100 feet in length must be placed immediately below the deepest fresh- water bearing strata; (5) in cased holes, permanent packers or bridge plugs with a minimum cement cap of not less than 50 feet may be substi- tuted for cement plugs; ' (6) final abandonment of onshore wel!s is comoleted only after the well location is cleaned up as specified in sec. 170 of this chapter; and (7) final abandonment of offshore wells in addition to meeting the requirements of this section may also have to meet the requirements of other governmental agencies. (c) When a well is ..to be plugged and abandoned, the form entitled Sundry Notices and Reports on ~'~ells (Form 10-403) must be filed and approved, whenever possible, before commencing work. However, when necessary, verbal approval may be obtained from the commission or its representative before commencing work. The Form 10-403 must contain (1) the reason for plugging or abandonment; and (2) a statement of proposed work which includes (A) information on porous strata; (B) the kind, size, and location (by measured depth) of existing, and proposed plugs; (C) any 'plans for mudding, cementing, shooting, · .-t"- testing, and removing casing; (D) all other pertinent information; and (E) if the Form 10-403 is filed after commencing work, it must contain the name of the commission member or · its representative who provided verbal approval and the date of the approval. (d) Notice of .the plugging and abandonment must be given to the commission in time so that a representative of the commission may be present to witness the work. ,. (e) Following completion of the work, a final Form 10-403 must be filed. It must contain a history of the completed work and the date the well site would be in condition for final in- spection. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 -16- Register 74, July 1980 MISCET.TANEOUS BOARDS, CC~,~ZSSI©NS 20 AAC 25. 120 20 AAC 25. 140 20 AAC 25.120. WELL ABANDONMENT MARKER. (a) The c×act surface location of the abandoned hole must be shown by a steel marker post. The description and installation of the post must be as follows (1) at least four inches in diameter; (2) at least 10 feet long; (3) set in cement inside well casing; (4) extending 'at least four feet above final ground level; following (5) the top of the pipe must be closed with one of the · · (A) cement plug; (B)- screw cap; or (C) welds; and (6) as an alternative method to (2) and (3) of this subsection, the marke,.r post may be firmly welded with supporting fillets to the top of a blind flange placed on the wellhead. (b) The following information must be bead-welded directly to the marker post ( 1 ) name of the ope rator; (2) unit or lease name; (3) well number; and (4) 'exact location %¢ith o(A) footage from section lines; (B) section number; '" (C) township, north or south; (D) range, east or west; and ( E ) me ridia n. · (c) Inspection of proper marker post instal lation., and correct information will be made by a representative of the commission at the time of the location cleanup inspection as required in sec. 170. of this chapter. (d) $~hen requested by the surface owner, the marker post installation requirement will, in the commission's discretion, be waived by the commission, in %~hich case the information required in (b) (1), (2), and (3) of this section must be bead welded to the top of a blind flange placc,.d on the wellhead. · (e) In navigable waters, marker posts a're not required. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.140. WATER ~;ELLS. If a well drilled for oil or gas is to be plugged and abandoned but may safely be used as a freshwater well, and such a use is desired by the landowner, the well need not be cemented above the required plug set below the freshwater as required in sec. 105 of this chapter. $;ritten authority for this action must be obtained from the landowner, -17- ,- Register 74, July 1980 MISCELLANEOUS BOARDS, C~-?dISSICNS 20 AAC 25.140 20 AAC 25. 170 including his isSumption of the full responsibility for the final plugging of the water well.. This authorization must be filed with and approved by-the commission. Following the commission's approval of' the plugging of the well to 'the base of the fresh- water bearing strata and the. location cleanup, the operator will be relieved of further obligation under his bond. (Elf. 4/!3/80, Reg. 74 ) Authority: AS 31.05. 030 · 20 AAC 25.170. LOCATION CLEANUP. (a) Within one year of suspension or abandonment of an onshore well, the operator shall (1) remove all materials, supplies, structures, and installations from the location; (2) remove from location, adequately bury, or incin- erate all loose debris on or near the location in accordance with all applicable statutes and regulations; (3) fill and grade all pits;'and (4) leave the location in a clean and graded condi- tion. (b) An extension of time .beyond one year will, in the commission's discretion, be 'granted by the commission upon receipt of the form entitled Sundry Notices and Reports on Wells (Form 10-403) on which is stated (1) a request for a specific time extension; (2) the reason an extension is necessary; and (3) a description of location cleanup progress. (c) Following completion of all work required in (a) of this section, or when requested by the operator, onsite inspec- tions will be made by a. representative of the commission to (1) verify a proper well marker as required in sec. 120 of this chapter; " " (2) verify the location condition at the time of in- spection; and (3) provide the operator and his field representative a report of the inspection. (Elf. 4/13/80, Reg. 74) .. Authority: AS 31.05. 030 -18- Register 74, July 1980 MISCEr.rANEOUS BOARDS, 'C~MISSIONS 20 ~.C 25. 200 20 k~.C 25.205 ARTICLE 3. PRODUCTION PRACTICES. Section 200. Surface equipment 205. Notification of accidental loss of oil or gas 2i0. Multiple completion of wells - . 215. Commingling 'of production " ' 225. Capacity of gas wells " 230. Production measurement 235. Gas utilization 240. Gas-oil ratios.. 2'45. Common production facilities 250. DispoSal of salt' water and other Wastes 255. Equitable distribution of production 260. Illegal product, ion. 265. Automatic' shut'-i'n equipment 270. Bottom hole pressures.'- (ai Adequate produc- 20 AAC 25.200. SURFACE' EQUIPMENT. tion equipment must be installed to control,' separate, process, and clean in a safe manner all produced oil, gas, and water. Al! equipment must be installed and' maintained in accordance with good established industry practice. (b). Ail equipment must' be' adequately protected to insure reliable operation under the' range of. weather conditions expected for the specific location and use. · -. . (c) $Tellhead equipment i'nstall~d "mus~ inclhde 'adequate gauges and valves on' the tubing~ and on 'casing-tubing and casing- casing annuli to Show surface pressures and to control the well flow for the range of conditions expected. Other alternatives may be approved for subsea .completions· (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25·205. NOTIFICATION OF ACCIDENTAL. Lo~S OF OIL OR GAS. (a) The commission must be immediately nOtified by the operator of any accidental loss of Oil or gas, or both, from any drilling or producing well. This notification does not relieve the operator from complying with any other notification require- ments imposed by statute or regulation. .' (b) Within five days after the adcidental loss, the opera- tor shall submit a written report to' the commission detailing the following facts (1) time of incident; (2) location where incident took place; (3) volumes of oil and of'gas lost; ' ' (4) cause of the loss; (5} actions, taken and planned to prevent further loss; and -19- Register 74, July 1980 MISC_FY.rANEOUS BOARDS, CV3.5~1ISSIONS 20 ,z~z.C 25. 205 20 AAC 25.230 (6) equipment or procedural changes, if applicable, tc prevent the loss from recurring. (Elf. 4/13/80, Reg. 74) Authority: AS 31. 05. 030 20 AAC 25.210. MULTIPLE COMPLETION OF WELLS. A well may not be completed in more than one pool without approval of the commission. The commission will require evidence of adequate and complete separation as ascertained by pressure or circulation tests conducted at the time the packers are set. Subsequently, if packer leakage is suspected, the commission will, in its discretion, request the operator to provide proof of adequate and complete separation of the pools involved in the completions or make a packer leakage test. Notification must be given so' that the packer leakage test may be witnessed by a representative of the commission. (Eff. 4/13/80, Reg. 74) ~ Authority: AS 31. 05. 030 20 AAC 25. 215. '"~COMM!NGLING OF PRODUCTION. (a) On the surface, the production from one pool may not be commingled with that from another pool except when the quantities from each source of the production are determined by periodic well tests or other measurements. (b) In the same well bore, commingling of production from two or more pools will not be permitted except after notice, hearing, and an order of the commission approving such comming- ling. After the first hearing the commission will, in its dis- cretion,--approve commingling in other wells in the same pools if the proposing operator has certified that all operators with wells completed in one or more of the pools have been notified and no protest is furnished the commission within 15 days. (Elf. ..,.4/13/80, Reg. 74) .. :* .......... '" ' Authority: AS 31.05'.030 20 AAC 25.225. CAPACITY OF GAS ~;ELLS. Ail gas wells must be tested by the multi-point back pressure method upon completion or at a time requested by the operator and approved by the com- mission. The test results must be reported to the commission on the form entitled Gas $;ell Open Flow Potential Test Report (Form 10-421) within 30 days after the test. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 . . 20 AAC 25.23b. PRODUCTION MEASUREMENT. (a) All produc- tion from wells must be measured to determine the quality and quantity of produced fluids, using equipment and techniques acceptable to the commission such as API Standards, Recommended Practices, and Specifications. (b) Production may be measured from a lease or unitized property as a whole if adequate individual well test facilities are provided to enable accurate allocating and reporting of all I'l,~i,l:; t(> individual we] Is. -20- ' Register 74, July 1980 MISCELL~O~ BOARDS, CC~.~4ISSIONS 20 AAC 25.230 (c) Bypasses must not be connected around sales measurement equipment such as tanks, meters, gauges, .or gas meter runs. (d) The volumes of' produced gas, oil and water must be reported monthly, where appropriate, on the Monthly Production and Injection Report' (Form 10-405), the Producer's Report of Gas Disposition (Form 10-422), and the Report of Injection Project (Form 10-413). (e) The commission will, in its discretion, require suffi- cient 'notice so that its representative may monitor, witness, and collect data from (1) well tests to Verify production allocation and gas-oil ratio determinations; (2) measuring equipment insta'llations ~o verify that (A) tank settings are' in' accordance with APi Standards includi~ng automatic gauging, if installed; (B) liquid hydrocarbon metering is in accordance with API Std 2502, ase Automatic Custody Transfer" and API Spec. liN, "Lease Automatic Custody Transfer (LACT) Equi pme nt",- (C) meter provers and calibration are in accord- . "~echanica 1 Displacement ~!eter ance with API Std 2531, Prove rs"; (D) gas metering, meter runs, and calibrations are in accordance with API Std. 2530, "Orifice ~[etering of Natural Gas" or gas metering by turbine and other meters is in'~ccordance with accepted industry standards; and (E) gas volume determination is in accordance with acceptable differential pressure chart or electronic computer methods; (3) liquid hydrocarbon pipeline run tickets, to verify that the volumes for custody transfer have been properly deter- mined by making (A) ~temperature adjustments to 60°F, from tanks or meters; ('B) API gravity determinations from appropriate fluid samples in accordance with API Std. 2544, "Hydrometer Me thod"; (C) basic sediment and water (BS&W) determina- tions from appropriate samples in accordance with API Std. 2542, "Standard Methods of Test for Water and Sediment in Crude Oils"; and (D) meter proving factor determinations in accor- · "Measurement of Liquid Petroleum dance with API Std 1101, Hydrocarbon and Positive Displacement Meter"; and API Std. 2534, "Liquid Hydrocarbons by Turbine Meter Systems" except that successive meter factors that differ by more than 0.0025 are unacceptable and proper steps must be immediately taken to bring the meter within acceptable tolerance. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 -21- . Register 74, July 1980 MISCELLANEOUS ~OAPDS, C~,~ SS IONS 20 AAC 25. 235 20 AAC 25. 245 20 AAC 25.235. GAS UTILIZATION. (a) Gas from a well may be used in lease or unit operations for (-1] light or fuel; (2) injection to increase the ultimate recovery of hydrocarbons, or for storage; (3) the extraction of liquid hydrocarbons if the gas z{:~3'-is not wasted; and (4) the artificial lifting of oil from a pool if all gas returned to the 'surface is used without waste. (b) Gas from a weli must n~)t be permitted to escape into the air without commission approval, except (1) when required for safety; (2) when required for initial testing; and '(3) in "cases of operational necessity if no such escape is for more than five days within any 30-day period. (c) The disposit~ion of gas pr. oduction must be reported each month on the Producer's Report of Gas Disposition (Form 10-422). (Eff. 4/13/80, Reg. 74) · . Authority: AS 31.05. 020 AS 32.05. 030 '' 20 AAC 25. 240. .GAS-OIL RATIOS. (a) An oil well may not be allowed to produce with a gas-oil ratio in excess of 2,000 cubic feet of gas 'per barrel of oil. (b).. Upon application by an operator, the limitation in (a) of this section will, in the commission's discretion, be waived by the commission (1) fo~ wells producing from a pool that has an approved additional recovery project; or , (2) where the produced gas is being returned to the same pool. (c) Exceptions for conditions other than those specified in (b) of this section will, at the discretion of the commission, be granted only after application, notice, and hearing. (Elf. 4/].3/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 22.245. COMMON PRODUCTION FACILITIES. Common facilities may be' used to receive the production from any number of wells if adequate tankage or other measuring equipment is installed so that production from each well can be accurately determined at reasonable intervals. The commission will, in its discretion, require the measurement of production from each lease. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05. 030 -22- Register 74, July 1980 MISCELLANEOUS BOARDS, CC6DIISSIfiNS 20 AAC 25.250 20 AAC 25.265 .. .. 20 AAC 25.250. DISPOSAL OF SALT WATER AND OTHER WASTES. Salt water 'and other wastes may be disposed of by injection into" a hydrocarbon bearing formation upon approval of the commission. The disposal must be done in a manner that will not contaminate fresh water sources or endanger other' natural resources. '(Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.255. EQUITABLE DISTRIBUTION OF PRODUCTION. (a) Whenever the commission limits the quantity or rate of production of oil or gas that may be produced from a pool, the production allowed will be distributed among the wells or properties in such a manner that each producer has the oppo£tunity to produce or receive his just and equitable share. · · (b) Production....tests of wells, in cases where ~he results of the tests may be used in determining correlative rights of other producers, may be Witnessed by those producers and 'they must be notified by the operator of the wells and be given an opportunity to be present. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.260. ILLEGAL. PRODUCTION, No person may produce or transport crude oil or natural gas from any well or pool in Alaska except that which has been produced in accordance with the regulations and orders of the commission. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.265. AUTOMATIC SHUT-IN EQUIPMENT. (a) Any well covered by this chapter with an offshore surface location, which is capable of unassisted flow of hydrocarbons, must be equipped wi th a commission-approved (1) fail-safe automatic surface safety valve (SSV) capable of preventing an uncontrolled flow; and (2) fail-safe, automatic surface controlled subsurface safety valve (SSSV), unless another type of subsurface valve is approved by the commi~sion; this valve must be in the tubing string and loca(ed below the mud line, permafrost, or at some other depth as may be required; the valve must be capable of preventing an uncontrolled flow. · . (b) 'The commission will, in its discretion, also require SSV's or SSSV's,. or both, on wells in other areas after notice and hearing in accordance with sec. 540 of this chapter. (c) A representative of the commission will witness opera- tion and performance tests at intervals and times as prescribed by the commission to confirm that the SSV, SSSV, and all associ- ated equipment are in proper working condition. (Eff. 4/13/80, Reg. 74 ) Authority: AS 31.05. 030 · -23- · ' Register 74, July 1980 MISC~.[.TANECv3S BOA~S, CE~.~.~SSIO,~S 20 AAC 25.270 20 AAC 25.320 20 AAC 2'5.~270. BOTTOM HOLE PRESSURES. The operator Shall make a test to determine the bottom hole pressure in the dis- covery well in any new pool. The test must be made after the well has been shut-in for a period sufficient to allo,~ an accu- rate determination of the reservoir pressure. The results must be repot{ed to the commission on the form entitled Reservoir .'."..' Pressure Report (Form 10-412). (Elf. 4/13/80, Reg. 74) Authority:. AS 31.05.030 ARTICLE 4. REPORTS. Section 300. Request for addition information 310. Books and records 320. Forms to be used 20 AAC 25.300. ...REQUEST FOR ADDITIONAL INFOR}IATION. This chapter does not limit or '~restrict the authority of the commis- sion to require the furnishing of such additional reports, data, or other information relative to drilling, production, transpor- tation, storage, o.r handling of crude oil 'or natural gas in Alaska, as may appear to it to be necessary or desirable, either generally or specifically, for the prevention of waste and the conservation of the natural resources of Alaska. (Elf. 4/13/80, Reg. 74) ' ' Authority AS 31.05. 030 20 AAC 25.310. BOOKS AND RECORDS. All operators, pro- ducers, transporters, storers, and handlers of crude' oil and natural gas within Alaska shall make, and keep in Alaska for a period of not less fhan five years, appropriate books and records covering their operation in AlaSka. The data from these bSoks and records must be used to make and substantiate the reports required by this chapter. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 -~ 20 AAC 25.32'0'~' FORMS TO BE USED. (a) Where this chapter requires forms to be filed, .the forms to meet these requirements and the submission frequency are as follows (1). Application for Permit to Drill - Form 10-401 (each well); (2) Bond - Form 10-402 (before drilling each Well unless blanket bond filed); (3) Sundry Notices and Reports on Wells - Form 10-403 (irregular as needed); (4) Monthly Report of Drilling and Workover Opera- tions - Form 10-404 (monthly); .. (5) Monthly Production and Injection Report - Form 10-405 (monthly); -24- Register 74, July 1980 MISCELLANEOUS BOASDS, CI2,95SSIONS 20 k%C 25.320 20 AAC 25.400 . · (6) Well Completion or Recompletion Report and Log - Form 10-407 (within 30 days after completion, suspension, or abandonment); (7) Well' Status Report and Gas-Oil Ratio Tests - Form 10-409 {irregular); (8) Reservoir Pressure Report - Form 10-412 (irregu- lar); (9) Report of Injection Project - Form 10-413 (monthly); (10) Gas Well. Open Flow Potential .Tes% Report - Form 10'421 (upon completion of gas well or at a time approved by the commission); and -. (11) Producer's Report of Gas Disposition - Form 10-4'22 (monthly} . · (b) These forms...must be submitted to the Alaska Oil and Gas Conservation Commis'~ion at 3001 Porcupine Drive, Anchorage, Alaska 99501. {Eff. 4/13/80, Reg. 74) Authori'ty: AS '31.05.030 ARTICLE 5. ADDITIONAL RECOVERY METHODS. 'Section. · 400. Application for additional recovery 410. Injection wells 430. Records and reports 20 AAC 25'.400. APPLICATION FOR ADDITIONAL RECOVERY. (a) Any operator proposing to gain additional, recovery by using methods other than those methods used for primary recovery shall submit an application for the project for approval by the ccmmis- 'sion. (b) -The application must contain the following: {1) the names and addresses of every operator of the project; " (2) a plat showing the unit, lease, or group of leases included within the proposed project; the plat must also show the location of the proposed injection well or wells and the location of all oil and gas wells, including abandoned and drilling wells an'd dry holes, and the name of every operator offsetting the area encompassed within the project; (3) the pools in which all wells are currently com- pleted; {4) the name, description, and depth of the pool to be affected by injection; (5} the logs of all existing injection wells; (6) the description of the casing in each injection well, or the proposed casing programs, and the proposed method for testing the casing before use as an injection well; -25- ' Register 74, July 1980 MIS~LT~XNEOUS BOAKDS, 20 AAC 25.400 20 AAC 25.430 (7) a. statement as to the injection fluid to be' used, its sources, and the estimated amounts to be injected daily; (8) a 'tabulation showing recent production tests for each of the producing oil and gas wells; and (9) a statement of the plan and rate 'of development of the area included within the project. (c) A copy~of the ap licat'ion must be mailed or delivered by the applicant (1) to every operator affected by the project as shown on the application on or before the date the application is filed with the commission; .and (2) to the commission, including a list of all oper- ators, .with their addresses, to whom the application was mailed or delivered. .~ (d) In the absence 'of any objection within 30 days from the date of mailing, the. commission will, in its discretion, approve the application.' I.f' objection is made, the commission will set the matter for hearing in accordance with sec. 540 of this chap- ter. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.020 AS 31.05.030 20 AAC 25.410. INJECTION WELLS. Wells used for the injection of gas, air, water, or other extraneous fluids into the producing reservoir must have (1) safe and adequate casing which must be cemented to prevent'' leakage-or damage to oil, gas or fresh water resources; (2) safe and adequate tubing with a packer in place to prevent communication With the tubing-casing annulus; and (3) regular monitoring of the tubing-casing annulus to detect pressure communication. ,~ (Elf. 4/13/80, Reg. '74) ' Authority: AS 31.05.030 20 AAC 25.430. RECORDS AND REPORTS. Each operator shall keep accurate records showing volumes of. fluids produced, inject- ed volumes,, reservoir pressures and injection pressures. Upon reasonable notic'e, the commission or its authorized representa- tive must be given full access during normal business hours to all records and reports. Each operator shall file with the commission, a monthly report which shows all produced and injected volumes and other data as required by the 'commission on the forms entitled Monthly Production and Injection Report (Form 10-405), Report of Injection Projects (Form 10-413) and Producer's Report of Gas Disposition (Form 10-422). (Elf. 4/13/80, Reg. 74) 0 . .... Authority: AS 31.05.030 -26- Register 74, July 1980 MISCELLANEOUS BOA3DS, flDMMISSIC%]S · 20 AAC 25.505 20 ~AC 25.510 ARTICLE 6. GENERAL PROVISIONS Section 505. Scope of regulations ' 510. Commission office, hours and seal 515. U.S. Government leases 520. Field and pool' regulation and classification 525. Forms upon request ~ 526. Fire hazard 530. Cooperation with other parties 536. Geologic data and logs 537. Public and c~nfidental well information 538. Naming of fields and pools · 540. Hearings 545. Public mailing ..1.ist 550. Oaths 555. Orders 557. Subpoenas 570. Definitions 20 AAC 25.505. SCOPE OF REGULATIONS. 'This chapter con- sists of general regulations of state-wide application which apply to all wells and fields. However, the commission will, in its discretion, and after notice and opportunity for public comment, adopt orders applicable to particular areas or subject matter, which prevail over these general regulations to the extent that they are in conflict. (Eff. 4/13/80, Reg. 74) · Authority: AS 31.05.030 , . 20 AAC 25.510. COMMISSION OFFICE, HOURS AND SEAL. (a) The principal office of the Alaska Oil and Gas Conservation Commission is located at 3001 Porcupine Drive, Anchorage, Alaska 99501. The commission's telephone number is (907) 279-1433. · . (b) The office of the commission is open for the trans- action of business each day from 8:00 AM' until 12:00 Noon and from 1:00 PM until 4:30 PM, except Saturday, Sunday and every state holiday. A commission representative will be available after normal office hours, and on week-ends and holidays through an answering se'~ice by calling the same number as shown in (a) of this section. -27- Register 74, July 1980 MIS~L~ANFf~S BOAPDS, C~.~SSi~S 20 AAC 25.510 20 AAC 25.52C (c) The official seal of the commiss ion is reprcduc( be 1 ow. (Elf. 4/13/80, Reg."74) Authority: AS 31.05.017 AS 31.05.030 AS 31.05.050(b) , 20 AAC 25.515. U.S. GOVERN~IENT LEASES. All persons drilling on United States Government leases shall comply with all applicable regulations of the commission which are not in con- flict .with a. pplicable United States government regulations. (Eff. 4/13/80, Reg. 74.) '"' .. Authority: AS 31.05.0!0 20 AAC 25.5J0. FIELD AND POOL REGULATION AND CLASSIFICA- TION. (a) Upon the request of the commission or any affected lease owner at any time after the discovery of oil or gas' ,in a field or pool or both, a hearing will be held and the commission will issue an order, 'based upon the evidence presented, clas- sifying the pool as an oil or gas pool in a field and prescribing rules for the development of the pool. All pool orders so prom- ulgated must (1) prevent waste and protect correlative rights; and (2) be based on the operating and technical data pre- sen ted. ,. ' (b) The commission will, in its discretion, reclassify fields and pools or amend pool orders upon the presentation of additional data at a subsequent hearing. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.020 AS 31.05.030 AS 31.05.060 AS 31.05.100 -28- Register 74, July 1980 MISCELLANEOUS BOAFDS, CC~y~SSI©NS 20 AAC 25.525 20 AAC 25.536 20 AAC 25.525. FORMS UPON REQUEST. Forms for applica- tions, notices, approvals, and reports required by the commission-- will be furnished upon request. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.526. FIRE HAZARD. Each well location must be maintained in a manner to prevent fires. All rubbish, debris, waste material, spilled oil, and any other substance that consti- tutes a fire hazard must be disposed of in a manner and at a 'location approved by all applicable state and federal regulatory agencies. (Eff. 4/13/80, Reg. ¥4) Authority: AS 31.05.030 20 AAC 25.530~ 'COOPERATION WITH OTHER PARTIES. The commission will, in its discretion, from time to time enter into arrangements with Alaska and federal government agencies, indus- try committees, and individuals with respect to special projects, services, and studies relating to the conservation of oil and gas. If any arrangement requires the commission to utlitize procedures not covered in this chapter, the procedures necessary to carry out the intent of the arrangement will be formulated and made available at the office of the commission after public notice and opportunity for public comment. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.023 AS 31.05.030 20 AAC 25.536. GEOLOGIC DATA AND LOGS. (a) The operator shall log the portion of the hole below the conductor pipe by either a complete electrical log or a complete radioactivity log unless the commission specifies which type of log is to be run. (b) Within 30 days after completion, suspension, or aban- donment of a drilling well, the operator shall file with the commission (1) 'a complete mud log or a lithology log consisting of a detailed record and description of the sequence of strata encountered, including kind and character of the rock and all shows of hydrocarbons; . (2) a complete set of washed and dried, legibly-iden- tified samples of all well cuttings as caught by the operator in accordance with good geological practices; (3) a brief description of all cores and a chip from each foot of recovered core'; (4) a list of the geologic markers encountered in the · well and the measured and true vertical depths of each marker; (5) a sepia and a reproduced copy of all logs run in the well, (including the composite logs, if available) except velocity surveys and experimental logs; and (6) the digitized data if available, for copying, for all logs required in (5) of this subsection, except the dipmeter survey. -29- . Register 74, July 1980 MISCE~OUS ~OAF~DS, 20 ~AC 25.536 20 AAC 25.537 (c) The ¢ommiss ~on will , in its discretion, waive the requirements of (a), (b) (1), and (b) (2) of this section for development, wells. (d) In this section (1) "experimental logs" means the logs which are so newly developed or .so 1.imited or specialized in application that they are not commonly run on petroleum exploration or development wells; and ' ~ (2) "velocity survey" means a survey, the primary purpose of which is to determine velocity of seismic waves through formations penetrated by a well by measuring travel times of seismic pulses fr. om or near the surface to a seismometer lowered to various depths in the well, and also includes the integrated time markers on sonic logs. (Elf. 4/13/80, Reg. 74) · ' Authority: AS 31.05.030 AS 31.05.035 '2_0 AAC 25.537. PUBLIC AND CONFIDENTIAL WELL INFOR~AT!O~;. (a) The commission will routinely make available to the public, by mean's of records or reports, in its offices or elsewhere, or by means of regular publication, the following information (1) surface and proposed .bottom-hole location of each well, after approval of the drilling permit; (2) total depth, bottom-hole location and well status after the Well Completion or Recompletion Report and Log (Form 10-407) is filed; .... (3) production data and production reports, as required to be filed by the operator each month; and (4) all well information required to be filed by the operator after the expiration of the confidential period. (b) Information not required by this chapter, but voluntar- ily filed with the commission will be kept confidential if the person filing the information so requests. (c) In this section, "well status" means the classification of a well as oil, gas, service, suspended, or abandoned. (d) Except as provided by (a) of this section, the reports and information required to be filed by the operator will be kept confidential .by .the commission for 24 months following the 30-day filing period unless the operator gives written 'and unrestricted permission to release 'all of the report's and information at an earlier date. Upon notification from the commissioner of the Department of Natural Resources t. hat he has made a finding that the required reports and information from a well drilled on state land contain significant information relating to the valuation of unleased land in the same vicinity, the commission will hold the reports and information confidential beyond the 24-month period -30- Register 74, July 1980 5~SCELLAN?:OUS BOARDS, C~.~ISSIONS 20 ~D.C 25.537 20 AAC 25.540 and until notified by the commissioner of the Department of Natural Resources to release the reports and information. (Elf. .4/13/80, Reg. 74) Authority: AS 31.05.026 .- AS 31.05.030 ~ AS 31.05.035 · 20 AAC 25.538. NAMING OF FIELDS AND POOLS. (a) The following procedures must be followed for the naming of new fields and pools (1) if the operator believes the well is a new field or a new pool discovery and wants to participate in naming the discovery,' he shall furnish information to ~'he commission showing why he believes a new discovery has been made, not later than 30 days after the earliest of the following dates (A) -t. he date the well information is rel'eased by the commission to the public; or .(B) the date regular production commences; and (2) at the same time that the information in (a) (!) of this section is filed, the operator may submit three recommenda- tions for a new field name or a new pool name or both. He may indicate his first, second, and third choice of names. (b) The ~ommission will consider all of the information filed to determine if a new discovery has been made. If the commission finds a new discovery has been made, the commission will select a field name or a pool name, or both, giving consid- eration to the operator's recommendation, significant landmarks, public use, conflicts with other pool and field names, geologic completion interval, and any other factors which make it unique, acceptable, and usable. (Elf. 4'/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.540.. HEARINGS. (a) Upon its own motion or when a request is received to issue an order affecting a single well or a single field, the commission will give notice by publishing in an appropriate newspaper. The notice will provide the essen- tial details of the proposed or requested order and set out the date, time, .and place for a hearing. A proper protest and request for hearing must be filed with the commission at its office in Anchorage, Alaska within 10 days after the publication date by any person who may be aggrieved by the requested order if issued. If such a protest is timely filed, a hearing will be held on the date and time specified in the notice. If no protest is timely filed, issuance of the order will be considered by the commission without a hearing. {b) The following procedure will be followed at public hearings conducted under (a) of this section: (1) the hearing will be called to order and the sub- ject of the hearing along with the date and place of public notice given for the hearing will be read into the record- -31- ' I'I Register 74, July 1980 MISCiEI~ANEOUS BOAPDS, CC~.~SSIO~S 20 AAC 25. 540 2O AAC 25. 545 (2)' the commission will receive both sworn testimony and unsworn statements;' it will give greater weight in its delib- erations to sworn testimony; (3) all persons wishing to testify will be sworn; (4) each witness shall state his or her name and who '' he or she represents; ~' '.' (5) each witness who wishes to give expert testimony '.. shall state his .or her qualifications and the commission will rule on whether the witness qualifies as an expert; (6) the applicant will be asked to present his testi- mony first; all others wishing to present testimony will be heard next; upon request, the commission will, in its discretion, allow cross-examination of witnesses by the applicant or affected owners; (7) .any person wishing to make an oral statement will be allowed to do so after the conclusion of all testimony; (8) any person wishing to submit a written statement will be permitted to. do so after the conclusion of the oral statements; (9) the commission will, in its discretion, ask Ques- tions of any of the witnesses; (10) members of the audience Will not be permitted to ask questions of witnesses directly; if they wish to have a question directed to a witness; they must write the question down and give it. to a designated commission representative indicating to whom the question should be directed; before the end of the hearing, the commission will review these questions and ask those which i..t. believes will' be helpful in eliciting needed informa- tion; all questions will be included in the hearing record; and .° (11) a written transcript of the hearing will be pre- pared and included in the public record of the hearing. , . . (c) Hearings on matters of state'wide or general application will be held under the applicable provisions of AS 44.62 (Admin- istrative Procedure Act). (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 AS 31.05.050 AS 31.05.060 '20 AAC 25.545. PUBLIC MAILING LISTS. Public mailing lists will be maintained by the commission for the purpose of sending appropriate notices, orders, and publications to persons who request to be put on these lists. (Elf. 4/13/80, Reg. 74) · . · . Authority: AS 31.05.030 · · AS 31.05. 035 AS 31.05.050 AS 31.05. 060 -32- Register 74, July 1980 MIS~LrANEOUS BOARDS, C~.~SSSI©NS · . 20 AAC 25.550 20 kAC 25.570 20 AAC 25.550. OATHS. Each member of the commission has the power to administer oaths to witnesses in any hearing, inves-" tigation, or proceeding conducted under AS 31.05 and this chap-. ter. (Eff. 4/13/80, Reg. 74) - · Authority: AS 31.05.030 ~ AS 31.05.070 · 20 AAC 25.555. ORDERS. No order, except in an emergency, will be issued by the commission except under the procedure con- tained in sec. 540 of this chapter. An emergency order will,-in the commission's discretion, be issued when an emergency requir- ing immediate action is found to exist. An emergency order is not effective for. more than 15 days. (~£f. 4/13/80, Reg. 74) Authority: AS 31.05.030 · AS 31.05.040 20 AAC 25.557. SUBPOENAS. (a) The commission will, in its discretion, issue subpoenas and subpoenas duces tecum. (b) Subpoenas duces tecum for the production of books, records, papers, or other documents of any sort will, in the commission's discretion, be issued by the commission upon a written request. The applicant must establish that he has a proper relation to the matter and show the relevance of the evidence sought and the facts expected to be proved by them. (c) The issuance of subpoenas, requiring the attendance of a witness for the purpose of taking oral testimony before the commission will, in the commission's discretion, be issued by the commission upon a written request. The applicant must establish that he has proper relation to'the~ matter and give the name and address of the desired witness. (Eff. 4/13/80, Reg. 74) Au thority: AS 31.05.030 AS 31.05.070 20 AAC 25.570. DEFINITIONS. In this chapter, unless the context clearly requires otherwise (1) "API" means the American Petroleum Institute; (2) "API Specifications" means those specifications that are in effect at the time these regulations are promulgated. (3) "API Standards" means those standards that are in effect at the time these regulations are promulgated. (4) "API Recommended Practices" means those practices that are in effect at the time these regulations are promulgated. (5)' "barrel" means 42 U.S. gallons, measured under standard conditions; -33- Register 74, 'July 1980 ~SSC~~EOgS 5OASDS, OC62~SSIC,~S 20 AAC 25.570 (6) "BOP" means blowout preventer, which is a cas- inghead assembly equipped with special gates or rams or othe] packoffs which can be closed around the drill pipe, tubing. .. casing, . or tools and which completely closes the top of the · - casing to Control well pressure; . . (7) "bottom hole pressure" means the pressure in pounds .' ~ per square inch gauge (psig) under conditions existing at or near the producing horizon determined by means of an instrument adopted and recognized by the oil and gas industry; (8) "commission" me~ns the Alaska Oil and Gas Conser- · vation Commission; . ., · ' ~ (9) "condensate" means the 'liquid recovered at the surface that results from condensation due to reduced pressure or temperature of petroleum hydrocarbons existing in a gaseous phase in the reservoir; (10) "day" means a period of 24 consecutive hours from 7:00 AM one day to 7:00 AM the following day; the calendar day is the day in which this period begins; .. (11) "development well" means a well drilled within the proved area of an oil or gas 'reservoir to the depth of a strati- graphic zone known to be productive; .. (12) "drilling fluid" means any fluid as the term is commonly., used .in the industry for the purpose of drilling and removing cuttings .from the well; ." (13)' "d~illing unit" means that area set by the commis- sion as provid..ed for in AS 31.05.100; -. · . . .. ~ ~ · (14) "exploratory well" means a well that discovers or is drilled to discover a previously unknown pool; (15) "gas-oil ratio" means the ratio of gas in standard cubic feet to oil in barrels produced concurrently during any stated period; · (16) "gas well" means a well which produces gas as its principal product; (17) "multiple completion" means the dompletion of any well so as to permit production from more than one pool with the production from each pool completely segregated; (18) "oil well" means a well which produces oil as its principal product; -34- Regist~.r 74, .July 1980 MISCE, T,~NI-:()US 'I~DARDS, C~,IMIS:';[ON$ 20 AAC 25.570 (19) "operator" means any person who, duly authorized, is in charge of the development of a lease or the operation of a well; '" (20) "potential" means the ability of a well to produce oil or gas as determined by an approved test; (21) "reservoir" means the same as pool; (22) "service well" means a well drilled or completed for the purpose of supporting production in an existing field; service wells are drilled for -3as injection, water injection, steam injection, air injection, saltwater disposal, water supply for injection, observation, anti injection for in-situ combustion; (23) "standard conditions" means a temperature of 60 degrees Fahrenheit ,a..nd an absolute pressure of 14.65 pounds per square inch; ' (24) "stratigraphic test" means a hole drilled for the sole purpose of gaining structural or stratigraphic information. or both and to a depth sufficient to penetrate and explore forma- tions which are prospective producing pools, but is not dril.led with the intent to be completed as a producing well. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 Editor's Note: See AS 31.05.170 for further definitions. -35- r , ATTACHMENT A-3 DESCRIPTION OF AREA OF REVIEW The area of review for this permit includes the sections described as follows: T.gN., R.13W., S.M. T.ION., R.13W., S.M. Sections: 3;4;5;8;9;10. Section: 33 S 1/2,SE 1/4. ATTACHMENT B WELL MAP - AREA OF REVIEW 40 CFR 146.24 (a) 2 Map #1 shows the area of review and all major surface facilities pertaining to the Trading Bay Field, Cook Inlet, Alaska. Map #1 also shows all intake and discharge structures. / / / / / / / / / /' I \ I I i I I / I I / / I / / / / / / / / / / / AREA OF INTEREST. ~ rs~-4l''',x,' ~ s-zRo, M/dd/e R/vet St,-/ m / / T$-2I~ Traamg Bay Sf.-I UNION + I / I , -- ' / / ~ / ,o ~ / / / / / / ATTACHMENT C CORRECTIVE ACTION PLAN AND WELL DATA 40 CFR 146.24 (a) 3, 7, 8 A tabulation of data on all wells of public record which penetrate the injection zones within the area of review may be found in Attachment C-1. To the best of Union Oil Company of California's knowledge all listed wells were constructed, and where applicable, abandoned in compliance with the requirements of the Alaska Oil and Gas Conservation Commission. SPUD WELL AP1 NUMBER DATE COMP. DATE MONOPOD WELL DATA 5-23-85 SURFACE LOCATION BOTTOMHOLE LOCATION DEPTH TVD STATUS TBS-A-1 50-733-10055 10/02/66 TBS-1-A 50-733-10052 05/10/65 TBS-A-2 50-?33-10056 10/18/66 TBS-A-3 50-733-10057 12/09/66 TBS-A-4 50-733-20001 03/24/67 TBS-A-5 50-733-20011 04/27/67 TBS-A-SRD 50-733-20011 01/30/70 TBS-A-SRD2 50-733-20011-01 02/04/76 TBS-A-6 50-733-20020 06/06/67 TBS-A-7 50-733-20036 08/27/67 TBS-A-8 50-733-20043 10/11/67 TBS-A-9 50-733-20062 11/12/67 TBS-A-gRD 50-733-20062-01 04/10/81 TBS-A-10 50-733-20064 12/05/67 TBS-A-11 50-733-20214 03/20/70 TBS-A-12 50-733-20076 02/13/68 TBS-A-12RD 50-733-20076-01 02/22/72 TBS-A-13 50-733-20077 01/06/68 TBS-A-14 50-733-20099 04/04/68 TBS-A-15 50-733-20~05 06/06/68 TBS-A-16 50-733-20111 06/25/68 TBS-A-17 50-733-20135 07/23/68 07/06/67 1618'N, 06/25/65 1598'W, 12/06/66 1613'N, 04/24/67 556'W, 04/26/67 1611'N, 06/04/67 1605'N, 02/24/70 1605'N, 03/06/76 1605'N, 06/28/67 1600'N, 10/12/67 1615'N, 11/11/67 1612'N, 12/05/67 1625'N, 05/11/81 1625'N, 01/07/68 1609'N, 05/23/70 1619'N, 03/17/68 1617'N, 03/31/72 1617'N, 02/13/68 1604'N, 06/01/68 1601'N, 06/23/68 1616'N, 07/24/68 1610'N, 08/28/68 1608'N, TBS-A-17RD 50-733-20135-01 06/11/81K0 07/03/81 TBS-A-18 50-733-20143 08/29/68 TBS-A-19 50-733-20151 11/23/69 TBS-A-20 50-733-20302 07/24/77 TBS-A-21 50-733-20223 09/21/70 TSS-A-21RD 50-733-20228 01/17/72 TBS-A-22 50-733-20218 05/27/70 TBS-A-23 50-733-20227 12/28/70 TBS-A-24 50-733-20226 10/21/70 TBS-A-24RD 50-733-20226-01 01/15/81 TBS-A-25 50-733-20242 m 05/28/72 TBS-A-26 50-733-20230 04/01/72 TBS-A-27 50-733-20246 02/23/73 11/17/68 01/29/70 10/01/77 10/21/70 02/21/72 07/19/70 01/14/71 11/23/70 07/21/72 05/02/72 04/11/73 1608'N, 1624'N, 1625'N, 1604'N, 1600'N, 1600'N, 1600'N, 1601'N, 1620'N, 1620'N, 1617'N, 1606'N, 1605'N, 567'W 2029'S 570'W 1616'N 558'W 568'W 568'W 568'W 568'W 561'W 577'W 566'W 566'W 571'W 559'W 571'W 571'W 573'W 579'W 577'W 566'W 576'W 576'W 558'W 562'W 559'W 561'W 561'W 565'W 557'W 574'W 574'W 551'W 563'W 553'W f/SE/Ct. f/NE/Cr. f/SE/Cr. f/SE/Cr. f/SE/Cr. f/SE/Cr. f/SE/Ct. f/SE/Ct. ,Sec.4,T9N,R13W,SM. ,Sec.4,T9N,R13W/SM. ,Sec.4,T9N,R13W,SM. ,Sec.4,TgN,R13W,SM. ,Sec.4,TgN,R13W,SM. ,Sec.4,TgN,R13W,SM. ,Sec.4,TgN,R13W,SM. ,Sec.4,T9N,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4, TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,T9N,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Seo.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Seo.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13W,SM. f/SE/Cr.,Sec.4,TgN,R13WSM. f/SE/Cr.,Sec.4,T9N,R13W,SM. f/SE,Cr.,Seo.4,TgN,R13W,SM. f/SE,Cr.,Sec.4,TgN,R13W,SM. f/SE,Cr.,Sec.4,TgN,R13W,SM. f/SE,Cr.,Sec.4,TgN,R13W,SM. f/SE,Cr.,Sec.4,TgN,R13W,SH. f/SE,Cr.,Sec.4,T9N,R13W,SM. 3447'N, 545 3447'N, 545 2069'N,2033 1427'N, 357 1768'N, 78 487'S,2598 332'S,2668 693'S,2673 3465'N,1997 1826'N, 514 2105'N,3123 549'S, 777 1530'N,2700 1094'N,2639 281'N, 514 3343'N,3119 2694'N, 184 993'N,3730 286'N,4618 4206'N,1911 1669'N,3960 823'S, 605 37'S,2609 741'S, 443 3480'S,1050 2618'N,1857 1981'S,1182' 1908'S, 993 149'5, 248 733'S,3885 912'N,1546 357'N,3396 lO14'N, 591 1999'S, 431 2784'S,3948 'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,19N,R13W,SM. 'E f/SW,Cr.,Sec.5,TgN,R13W,SM. 'E f/SW,Cr.,Sec.5,TgN,R13W,SM. 'W f/NE,Cr.,Sec.9,TgN,R13W,SM. 'W f/NE,Cr.,Sec.9,TgN,R13W,SM. 'W f/NE,Cr.,Sec.9,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,T9N,R13W,SM. 'W f/SE,'Cr.,Sec.4,TgN,R13W,SM. 'W f/NE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 'W f/SE,Cr.,Seo,4,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W.SM. 'W f/SE,Cr.,Sec.5,TgN,R13W,SM. 'W f/SE,Cr.,Sec.4,TgN,R13W,S~. W f/SE,Cr.,Sec.4,TgN,R13W,SM. W f/SE,Cr.,Sec.4,TgN,R13W,SM. W f/SE,Cr.,Sec.4,TgN,R13W,SM. E f/NW,Cr.,Sec.9,TgN,R13W,SM. W f/NE,Cr.,Sec.9,TgN,R13W,SM. E f/NW,Cr.,Seo.3,TgN,R13W,SM. W f/NE,Cr.,Sec.5,TgN,R13W,SM. 6,187 6,532 6,448 10,544 10,491 6,962 6,815 6,251 6,007 6,389 6,518 6,076 6,467 6,652 9,927 6,450 6,118 6,447 6,630 6,011 6,515 6,876 4,197 10,228 6,886 E f/SW,Cr.,Sec.iO,T9N,R13W,SM. 10,661 E f/NW,Cr.,Sec.9,TgN,R13W,SM. 6,164 E f/NW,Cr.,Sec.9,TgN,R13W,SM. 6,197 W f/NE,Cr.,Sec.8,TgN,R13W,SM. 6,926 W f/NE,Cr.,Sec.9,TgN,R13W,SM. 5,976 W f/SW,Cr.,Sec.5,T9N,R13W,SM. 6,162 W f/SE,Cr.,Seo.4,T9N,R13W,SM. 4,265 E f/SW,Cr.,Seo.4,TgN,R13W,SM. 5,959 W f/SE,Cr.,Sec.8,TgN,R13W,SM. 5,672 W f/NE,Cr.,Se¢.9,T9N,R13W,SM. 7,017 Prod. P&A P~od. SI SI · P&A P&A Inj. Prod. Prod. SI R&A Prod. SI Prod. R&A SI Prod. Prod. Prod. SI SI Prod. Prod. SI SI R&A Prod. Prod. Prod. R&A Prod. SI SI Prod. MONOPOD WELL DATA 5-23-85 Page 2 WELL API NUMBER SPUD DATE COMP. DATE SURFACE LOCATION DEPTH BOTTOMHOLE LOCATION TVD STATUS TBS-A-28 TBS-A-29 TBS-A-30 TBS-A-32 50-733-20255 50-733-20245 50-733-20253 50-733-20301 11/03/73 12/09/72 05/05/73 05/20/77 12/05/73 02/22/73 07/04/73 08/09/77 1621'N, 554'W f/SE,Cr.,Seo.4,TgN,R13W,SM. 1624'N, 570'W f/SE,Cr.,Sec.4,TgN,R13W,SH. 1612'N, 551'W f/SE,Cr.,Seo.4,TgN,R13W,SM. 1607'N, 556'W f/SE,Cr.,Seo.4,TgN,R12W,SM. 1089'S, 236'E f/NW,Cr.,Sec.3,TgN,R13W,SM. 5,570 Prod. 985'N,1370'W f/SE,Cr.,Sec.5,TgN,R13W,SM. 5,619 SI l~21'N,4342'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 5,933 Prod. 2363'N, 881'W f/SE,Cr.,Sec.4,TgN,R13W,SM. 6,304 Prod. MS/cw:1525p Attachment D/E Underground Sources of Drinkinq Water 40 CFR 146.24 (a) (b) The underground sources of drinking water for the Trading Bay Field have been exempted for Class I1 activity. Attachment D/E-1 is a copy of 40 CFR 147.102 (b)(2)(D) which exempted the aquifers. Refer to Attachment F/G'I for geologic information. Federal Re~ster / Vcfl. ii iii i i AITAC}~,IENF I3/E- 1 ¢9, No. g:3 [ Friday. ,May 11. 190,4 ! Rules and Regulations i i i i i i ! i i approved by the Uirec~or of the Federal Register on }uno 35. 1984. (1} Code of Alabarrra 1975, ii 9-17-1 th~rouL~.h 9--17-110 {19,50 and Supl:L (2} State Oil and Gas Board al Alabama. Oil and Gas Reporl 1 [supplemented) (19al), General Pres~-i.bL~ Rules and Regula~ioas Govemi~ the Conserva~ oiOil and Gas in.Alabama (Order ~ 78-.100) as amended by Board Order No. 8.2--66 (May 14.1982) arnendLn8 Rule (b) The Memorandum of Agreement be,P, veen EI~A l~gion IV and the Alabama Oil and Gas Board. signed hy the EPA Regional Admini&trator on 15, 1982. {ri Satement of L~ga! Aut&,,orRy. 'State Oil and Gas Board has Authority to Carry Out Under!~rmmd Iniection Conuml Program Relating to Class II Wells as Described in Federal Safe Drinking Water Act--Opinion by Assistant .Attorney General." May 28, · (dj The Parr'am Description and any other materials submitted as part of the application or-as supplements thereto. ~ 147.51 State-administered prcgram-- CLa~ I. IlL IV an~ V wells The UIC program for Class I. III. IV and V wells La the State of Alabama is the program adminiaterud by the Alabama Department of Envirorunental Management, approved by EPA pmuant to Section 1422 of the SDWA. Notice of this approval was published in the Federal Reg~ter on August 25. 19a3 (48 FR 38C~]; the effective date of this program is August 2.5, prc~'am consists of the following element& as subm./tted to EPA in the State's program application: (a) Incorporation by reference. requirements set forth in the State statute,~ ~md regulations cited in this paragraph are hereby inco~orated by reference and made a part of'the applicable UIC pro.am under the SDW^ for the State of Alabama. This incorporation by reference was approved by the Director of the Federal Register on Iune z.5. 1984. (11 Alabama Water Pollution Control Act. Code of Alabama 197~. § §22-~-1 throu .~ ~-zZ-14 (1980 and Supp. (al Re.lotions. Policies and Procedures of the Alabama Water ImFrovement Commission. Title I (Rel~lationsl {Rev. December 19aO], as amended May 17. 1932. to add Chapter 9. Underground Iniection Control Re.lotions (effective June 10. 1982}. as amended April ~}. 19~ (effective May 11, (bl The Memoranduxn of ^~eement between ~A Regmn tV and the AJabama ~epar':'nent of ~nvironment Management. signed by the EPA Regional Administrator m'l May 24. 1983. {c) Sl~teme~t of LegoI Authority. [1) "Water Pollution--Public Health--St-ate has Author~ t'o Carry Oat Unde~round Iniecfion Control Program 9e',cribed in Federal Safe Drinkir'~ Water Act-- Opinion by Legal Counsel for the Water Improva:ue~ Commissicm." Ju.u-e 2~, 1982; [2] Letter from AttorneT, A'iabama Wai, er ~rprovement Ccrmmirsicra. R'~giorrai Adminis~a'atur. EPA Regiu.u "Re: AVv'IC Response to Fhill'ip Tate's (U.S. EPA, WashLu~on} C~mment8 AWIC'$ Final Application for Class I. I]2. IV, and V UIC Program.' September 21. [3) Letter.frmn Alab;rr~ Chief Assistant Attorney Genre'at to Re,oriel Coulee. EPA Region IV. "Re:. Sam.cfi I. udependent Legal Counsei ir, Alabama Water Improvement Commission's Uudergrou.ud Luiection Conumi Program." September 14.. (d] The Program Description and any, other materials submitted aa part of the ~,-,uiicatiou or as supplements there.to. ,Subuart C--Alaska § 147.100 State-administered program. [Reservect J § 147.101 EPA-admint~tered [a) Contents. The UIC program for the State of Alaska is administered by This program consists of the UIC program requirements of 40 CFR Parts 1;74, 144, and 146. and additional requirements set forth L~ the remainder of t. his subpart, injection well owners and operators, and EPA. sha[2 comply · with these requirements. (b) £~ectJre dot~. The effective date · of the U[C prb~rtam J'or Alaska :~. '~:.. ."§'!.47.:102 '.'SA~3u,['fer exemptton~. · "';-[=i] ~is section identJfies any .aquifer3 or theLr portions exempted in accordance with § § 144,7[b) and ~48.4 of this chapter at the time of program ptomulgation. F_,~A may in the future exempt other aquifers o~: pcrrfiong. according to applicable procedures, without codifying such exemptions in this section. An updated list of exemptions will be maintained in the Regional office. (bi T~e following aquifers are exempted in accordance with the provisions of t § ~44,7[bl and 146.4 this chapter [or Class Il injection activities only: " [1) The portions of aquifers in the Kenai Peninsula. treater than the indicated depths below the ground surface, and described by a .% mile area beyond and lying dir~ct!y below tke following oil and gas prcducing ~,elds: [A) Swanson River Ficid--l;"~ fee"_ (B] Beaver' Creek'Fidd-Z.l&yx3 [C]' Keri~i'f'Gas 'Field--1300 feet- (2} The portion of aquifers Cook Lnlet described by a V, ~..:ie beyond and lying ci.k~Yiy L'-clow following oil and gas p.c~dac. L-.g [A)~ Granite Point. i[B~,",fc. Ar~ur River Fie!.d. // 'iCl ,Middle Ground Shoal }'~_j} T:ading Bay Field. ~:3').~he pordons of aquffe,~ c-a Nort,h Sloue described by a W~ a:le beyond and lying di-rec,"l,y below Kuparuk River Unit oil a.ud ga; pmducir~ field. § 14-7.103 'Ext~t[n.g cla~ l, tt enteric,ed ~ov~ a~ M~~ ~ection ures~e. Th~ o~er ~ operator ~h~ 1~ ~iec~on p~ss~e to the lesser o~ (a]~ value w~ch ~ not ~ceed the operating requirements of t (il or (ii} as appi~cable: or {b} A vMue for well head calculated by usmg the fo~ula: whe~ .~.~ '~=in~e~ion ~ss~ at ~e weiI ponds ~er squn~ Sg=soec:fic ~a~W of ~ect C~d d=m~ecnon dep~ m feel _. ~~'~ hymen amm~ a~~ ~v.m~ . ia} Mba/mUm ~jec~on pressu~. (1) To meet the operating reqmrements of t t ~.2a(~fa}(ii) (A) and {E} cf Lhi~ ~apter. ~e o,~er or operatc~ (i) Shall use ~ ~jec~on pre~m~ no ~eater ~an ~e presses e~tablished by · e Retional A~inisXator for ~he field or famation in which ~e well is located. ~e Region~ . shall e~ta.b~sh~~?~'~jb~'dn pre~ s~e~'a'teFhbtiE&-b'~o~ Q far' · hea~g., ac~r~g.10_~e pm~sfon~ .~art.12~Subpatt A of this chapter, and ~I1 info~ o~ers and operato~ ~ting of ~e'applicab!e m~m press~e;.~ . -' ,{iii May iniect ~t press~ ~eate~ than '~'~'oeC~fied in' para~h "{a)(llfil. of thi~ section for ~he field or ffo~auo~ in which he is operating provided he submits a request to ~e Regional A~inis~ator. and demo~ates to the sa~sfactien af the Re,lanai Adminis~ator that such Injection pre~s~ will not vmlate the requirement of t t ~.2a(~{2I(ii} {A} and ATTACHMENT F/G GEOLOGICAL DATA ON INJECTION AND CONFINING ZONES (CLASS II) 40 CFR 146.24 (a) 5, 6 Attachment F/G - i is a geological report on the formation underlying the Trading Bay Field. TRADING BAY FIELD~ COOK INLET~ ALASKA Geologic Report for Injection Zones and Confining Zones Stratigraphy and Reservoir Description: The productive zones of Trading Bay Field are all nonmarine sediments of Tertiary age. They belong to the Kenai Group (Calderwood and Fackler, 1972) which is composed of five formations, the three oldest of which are present in Trading Bay Field. In order of decreasing age, they are the West Foreland Formation, the Hemlock Conglomerate, and the Tyonek Formation. Only the Hemlock and Tyonek are productive in Trading Bay Field, although log analysis indicates that the West Foreland contains oil-bearing sands in some wells. The West Foreland rests unconformably on the Lower-Middle Jurassic Talkeetna Formation, which is composed of interbedded volcanic and volcaniclastic rocks, and is considered economic basement. The Tyonek Formation is unconformably overlain by a thin veneer of Rleistocene (?) or Recent (?) sands which have high resistivity and may contain fresh water. The two youngest formations of the Kenai Group, the Beluga and Sterling, are not present by erosion or nondeposition. Hemlock Conglomerate: The stratigraphically lowest reservoir in Trading Bay Field is the Hemlock Conglomerate of Oligocene age, which unconformably overlies the West Foreland Formation. The Hemlock is characterized by its clean texture and quartz-rich composition. It is dominated by coarse-grained sandstones and pebble conglomerates that are commonly interspersed with thin siltstone beds or' tightly cemented impermeable layers, with rare thin coals. Thickness of the Hemlock varies from 300 to 450 feet in Trading Bay Field. A well-developed system of braided streams of moderate energy that flowed into the trough from the northwest and north along the basin axis appears to have been the major depositional mechanism during Hemlock time. The Hemlock is not currently under water-injection. .T¥onek Formation: The thickest and youngest Tertiary rock unit present in Trading Bay Field is the Tyonek Formation of Oligocene-Miocene age. It consists of 4700 to 6000 feet of interbedded thick, blocky sandstones which alternate with thinner siltstones, mudstones, and relatively thick coals. The sandstones are generally coarse-grained and pebbly at the base, and fine upward into very fine to fine-grained silty sandstone at the top of each sand. The upper contact of each sand is generally gradational with the overlying siltstone or mudstone, while the lower contact is erosional, with the sands usually resting on an underlying coalbed. This relationship is shown on Figure 2, an idealized lithologic section. ~ ~.~ ~ ./ ~, ~o~r k r~ .... ~ ' ~o,u ~~~~ TRA~~ ~ REDOUBT ) // ~:' . ~ ~.. .~' ~' ~" .": CREEK A ~. J .... ' ." (G~ ~'[ ~ :' :hik C~ OIL &/OR GAS FIELD [] TOJN · WELL DRILLINC PLATFORN (~::7 200 FT. DEPTH CONTOUR COOK INLET AREA ALASKA 0 5 I0 20 MILES LOCATION MAP Fig. I FIGURE 2 TYONEK FORMATION IDEALIZED DEPOSITIONAL SEQUENCE (TBS A-25) EXPLANATION Conglomeratic Sandstone I---:-':'-'1 Siltstone Sandstone i------ I Mudstone Coal I Unit - - ...'.:'..'.:.'......:.:c..'.'..'..'.".:."..".".'.9 ..................... ?,~?',.-..:.'~',-_~~...'~..'.': r.._' .,',=.~r- , · . '.'.-.' '~.'..'J..:.'.-' :. : ~ ~'.~'.~':.&.~..~t' ~.:i'~ , ~ · ..............o.......:.. .... ................-..~.....~,~...~,.~.....~... ,~,:_.~ [ ,~. · :.::..:...:.'.::0~..:.'.:.:. ..... . ........ ~..= , ~ ......... ,.....:.:....:........' '.....:....: ..................... __ .... . .... '.'.:'::.'.i:.:.'. :':.:."..'i:".::'.. '..". ................ · , . : _ ' '.'_ ' :.:':".'.:'.:.'...:'...."...::::".: ........... "' 'k'"' .'~ " r .}. '?-~.'!~ ~'~. ~'_. This cyclic depositional pattern, with a fining-upward sandstone bed (Figure 2, unit "A") overlain by a thin siltstone or mudstone bed (Figure 2, unit "B"), which is overlain by a coalbed (Figure 2, unit "C") on top of which the next sandstone (Figure 2, unit "A'") is deposited, formed as a result of low to moderate energy streams which meandered across a broad floodplain. The sandstones are point-bar deposits and bedload channel deposits, while the siltstones and mudstones typify interchannel, overbank, and sag pond deposits that provided a marshy substrate on which plant debris accumulated and gradually became coal. The coals in the Tyonek Formation tend to be relatively thick and laterally persistant, which makes them useful correlation markers and laterally continuous vertical permeability barriers. The Tyonek Formation has been subdivided into five zones which have been named alphabetically from "A" through "E", "A" being the shallowest and "E" being the deepest Tyonek, which rests on top of the Hemlock Conglomerate. These alphabetically-named zones apply only to Trading Bay Field and have no relation to the Tyonek "A" through "G" zones in adjacent McArthur River Field. Within Trading Bay Field, only the "II-A" fault block is large enough to justify secondary recovery methods. Rresently, only the "C" and "D" zones are being waterflooded, although a "B"-zone waterflood is scheduled for start-up in the near future. Cross-section A-A' shows the stratigraphic and structural relationships between the Tyonek Formation and surrounding rock units in Trading Bay Field (Figure 7), as well as the relationship of the "II-A" fault block to adjacent fault blocks. Fracture Pressure: From fracture stimulation treatments performed on producers within the Trading Bay Field, estimates of~fracture gradients vary from 1.04 to 1.503 psi/foot. Current injection pressures of 2900 to 3000 psi correspond to injection gradients ranging from 1.35 to 1.45 psi/foot. Testing performed on each injector confirms that fractures are not being propagated with these injection pressures. Current injection is restricted to the "C" and "D" zones within the Tyonek Formation. Secondary recovery operations are scheduled for the "B" zone in the near future. Tyonek "D" Zone: The Tyonek "D" zone contains seven reservoir oil sands in the "II-A" fault block. Some or all of these sands have been produced in TBS wells A-2, A-8, A-gRD, A-lC, A-11, A-13, A-14, A-22, A-23, A-25, A-30 and A-32. Slightly less than 26 million barrels of oil have been produced from the "D" zone sands in the "II-A" fault block to date. Fluid contact data for "D" zone sands are shown in Table 1. . TABLE l: Fluid Contact Data for "D" Zone Sands in "II-A" Fault Block: Sand O/W~ LKO~ or HKW* G/Or HKO~ or LKG* 53-0 53-8 54-5 54-9 55-7 56-1 57-2 O/W -5209 (A-lC) Dipping: HKW-5541 (TB3) to O/W -5615 (A-5) O/W -5602 (A-21) O/W-5572 (A-12RD, A-22) O/W-5617 (A-12RD, A-22) Dipping: O/W-5675 (A-12RD) to O/W -5723 (A-19) LKO -5862 (A-19) G/O(?) -5076 (LKG -5051, A-32; LKO -5102, A-gRD) G/O(?) -5177 (LKG -5149, A-2; HKO -5205, A-8) LKG -5188 (A-32) G/O -5236 (A-32) G/O(?) -5338 (LKG -5306, A-2; HKO -5370, A-8) G/O(?) -5418 (LKG -5406, A-2; HKO -5430, A-8) G/O -5499 (A-2) O/W = Oil-Water'Contact; LKO = Lowest Known Oil; HKW = Highest Known Water; G/O - Gas-Oil Contact; HKO = Highest Known 0il; LKG = Lowest Known Gas Generally, each sand has a unique oil-water and gas-oil contact, although it is possible that the "53-8" and "54-5" sands are in communication. The Tyonek "D" zone sands range from 0 to 110 feet in thickness, and average 50 feet. The confining zones for these reservoirs are the siltstone, mudstone, and coal beds which overlie each sandstone (Figure 2). The coals are laterally persistant, average.ten feet in thickness, and range from three to twenty feet. Average depth to the Tyonek "D" zone reservoirs is approximately 5500 feet. Figures 3 and 4 are structure contour maps on top of the "53-0" and "56-1" "D"-zone sands. These maps show the relationship of the oil zone, gas cap, and water injectors for each sand. Wells TBS A-5 and A-19 inject water into some or all of the Tyonek "D"-zone 'oil sands in the "II-A" fault block. T¥onek "C".Zone: The Tyonek "C" zone contains twelve reservoir oil sands in the II-A fault block. Some or all of these sands have been produced in TBS wells A-7, A-lC, A-11, A-14, A-16, A-23, A-24, A-25, and A-32. Slightly less than 18 million barrels of oil have been produced from the "C" zone sands to date in the "II-A" fault block. Fluid contacts for the "C" zone sands are shown in Table 2. . R ISW 32. A-19 v A-29 A-24 A-2~ 1 TS-2 r.o .0,7,*4. 34. A-18 ?vo 5S70 / A-25 A-14 TVO 'rvo r~e~C ~00 '21 RD A-21 A- 2~ ,''~// rvo 'roi? j"D" ZONE INJECTORS FIGURE :5 unlan Al,alket District TRADING BAY FIELD STRUCTURE CONTOURS TOP 5:5-0 SAND TYONEK FORMATION Anco A-12 ',;; ,~.. ~ ? ~': '.'.';.I ~ :' i' !.., A-20 · ,, ,. , , A-22 RI3W 'ri x.,i,~ TS-2 UNION '0 TOeS2e -32 " 4 ,vo ,o,.. A- 27.~~ ?vD 7Ol7 t INJECTORS FIGURE 4 ',..~,,° unm n Alaska District TRADING BAY FI ELD STRUCTURE CONTOURS TOP 56-1 SAND TYONEK FORMATION rr- A FAULT B LOCK cl, 50~ ~C&L[ [~ATE )AVTHO~ fl2n&rT'O [CHI[CK*O I rILE qm f' ,5oo' [ .... I ...... J SNS1 J ~ ' Table 2: Fluid Contact Data for "C" Zone Sands in "II-A" Fault Block: Sand O/W~ LKO or HKW* G/OF HKO or LKG* C-1 O/W -3925 (A-14) G/O -3830 (A-16) C-2 O/W -4022 (A-19, A-25, A-30) No known gas C-3 tKO -4185 (A-5) No known gas C-4 LKO -4264 (A-5) No known gas C-5 O/W -4288 (A-19) No known gas C-6 LKO -4432 (A-5) No known gas 0-7 O/W -4693 (A-26) No known gas 47-5 O/W? -4757 (OTB -4757, A-22; No known gas HKW -4758, A-12RD) 48-5 LKO -4844 (A-5) G/O -4574 (A-32) 48-7 LKO -4890 (A-5) No known gas 49-4 LKO -4774 (A-lC) No known gas 50-0 Dipping: HKW -4966 (A-21); No known gas LKO -4983 (A-22) O/W = Oil-Water Contact; LKO = Lowest Known Oil; HKW = Highest Known Water; G/O = Gas-Oil Contact; HKO = Highest Known 0il; LKG = Lowest Known Gas Generally, each "C"-zone sand has a unique oil-water contact and a small or nonexistant gas cap, and each is a separate reservoir. Figure 5 is a structure contour map contoured on top of the "47-5" "C"-zone sand, which shows the relationship between the water injection wells and the oil accumulation. Only TBS wells A-SRD#2 and A-12 RD inject water into . selected "C"-zone oil sands. The "C-i", "C-2", "50-0", and "50-6" sands are not currently being waterflooded; all other "C"-zone reservoirs are being waterflooded by either A-5RO#2 and/or A-12RD. The confining beds for these reservoirs are the siltstone, mudstone, and coal beds which overlie each reservoir sand (Figure 2). Tyonek "B" Zone: The Tyonek "B" zone contains nine reservoir oil sands in the "II-A" fault block. Some or all of these sands are being produced in wells TBS A-17RD, A-22, A-24RD, and A-30. Slightly over one-half million barrels of oil have been produced to date from the Tyonek "B" zone in the "II-A" fault block. Fluid contacts for the "B" zone sands are shown in Table 3. . ~ ~ TS~4~ Ul, l~ T'dO ,0,744 33 / [ 33134 ~t~r mma~ ~r sr~r~ , *¢'~ I ~ I II ..... ' , ,, I , :,g ,." ,u,';' '.c 'T TVD TVD e~,~ A-22, · ! .... D lO ,, ~" ' A-26 ~-' *% i~.'i' i ....] STRUCTURE CONTOURS TOP 4"/'-5 SAND i T¥O~EK FORM~TIO~ ~(X3(3 lC&L[ I DAT[ I &UTHOI I DI~&FrD lc#Icl<~D I ~IL[ WELL HEAD Pt. AN Table 3: Fluid Contact Data for "B" Zone Sands in "II-A" Fault Block: Sand O/Wy LKO or HKW* 24-6 26-7 28-6 31-8 33-6 40-4 41-3 LKO -2758 (A-23) LKO -2953 (A-5) LKO -3072 LKO -3431 LKO -3517 O/W -3508 (A-12RD) LKO -3632 41-8 44-7 O/W -3649 (A-22) O/W -3867 (A-23) G/Or HKO or LKG* No known gas G/O -2862 (A-24) G/O -2965 (A-30, A-24) G/O -3219 (A-13) No known gas No known gas G/O(?) -3468 (LKG -3445, A-lC; HKO -3492, A-14) G/O -3486 (A-13) G/O -3757 (A-lO) Generally, each "B" zone sand has a unique oil-water and gas-oil contact, and each is a separate reservoir, although it is possible that the 33-6 and 40-4 sands are in communication. The confining beds for the "B" zone reservoirs are the siltstone, mudstone, and coal beds which overly each reservoir sand, as shown in Figure 2. The "B" zone oil reservoirs are not currently being waterflooded. However, it is proposed that a "B"-zone waterflood be initiated in the near future in the "31-8", "33-6", "40-4", and "41-8" sands using the TBS A-29 wellbore for injection. Figure 6 is a structure contour map contoured on top of the "41-8" sand, which shows the relationship between the proposed A-29 water injection well, the oil accumulation, and the gas cap in the "II-A" fault block. NLG/pg 1036D Gilmont Area Development Geologist 10. JmCO 9~U~,ON ;sr r~aol?~s O~r sr4r~ NW~2 A-12 RD RI3W I uM,o~ A-15 I ~A-12 TS-2 e TVO A-24 A-8 )A-7 · · ' ?HO Il ~'°A- 4 ,vo ~ "B" ZONE I~,JECTORSL AIQIkQ DistriU TOP ¢t-8 SAND =-~ FAULT BLOCK TYONEK PO~MATION A SW UNION Trading Bay St.-3 -1000 -2000 FIGURE 7 CROSS SECTION A-A' TRADING BAY FIELD N 30°E Glacial (?) Sediments Base Glacial & Top Tyonek Formation Tyonek 'A" Zone Sands I],-A Fault Block Tyonek "B" Zone Sands Tyonek "A" Zone III-A Fault Block k~ UNION Trading Bay S .-lA -3000 -4000 -5000 Zones C_u_r r_.e_nJ_] y._B_e i ng. Waterflooded '-6000 (,Wet Zone) ..... : .............. T¥onek 'F_." Tyonek ~,,~ '":"' (Gas Zones) '~o~';'"§;;~;ds , ,.~ , · -¥-.~ . ; ·., I,.120nes) ' ' '".~:;'...'.:.,.'.;'.'." . .. . . ·., ;,.',.~. ,..., ..~, · ...~ . -. , ;%,? .,% .:'.,." ;:, ',. ~?....¥~.~.~-~'..'.-~: ' ,; ,'-77. ~'.'.-,~;,;~.....,:' .#~-,..'- .. .... , -- :'§;~';?J"s" ~':'~"*~" (~s "~"""'."~'",""~'"~r;:.. ~ " .,..;,? ~:.. Zones) ,, . .;., ,,. ,~. '.- , ~.,~, ,,? ........ ...~.~.4. (Oil Zones) · ,. ;.';? '_,.:'.': ? '..' ..~- Z,O'ne~ v v v v Tyonek v v v v v v v v v v v v v v v 500'1 0 Feet I 1000' v TMD 6532 v v ATTACHMENT H OPERATING DATA Union Oil Company of California requests a waiver of the operating requirements of 40 CFR 14~.23 (a), 40 CFR 147.103, and 40 CFR 147.104 (a) as allowed by 40 CFR 144.1~ (a). Union Oil Operates all wells within the Trading Bay Field in accordance with the regulations of the Alaska Oil and Gas Conservation Commission. Attachment H-1 is a list of all Class II Injection Wells within the Trading Bay State boundary. The listing shows injection pressure, rate, volume and annulus fluid information. The annular fluid for the Trading Bay Field injectors is seawater brine, possibly containing a corrosion inhibitor. Injected Fluids: Source and analysis of the chemical and physical characteristics. There are two different categories of injection operations within the Trading Bay Field. They are source water injection and injection for well stimulation. The following sections detail the types of fluids injected in each category. Source Water Injection: This fluid is filtered seawater from the Cook Inlet injected into the oil production zones for pressure maintenance, enhancing oil recovery. Attachment H-2 provides additional information on the source water properties. ~njection For Well Stimulation: These injected fluids are primarily acids and formation waterwash fluids which are used to increase well injectivity. These fluids may contain amounts of corrosion inhibitors, oxygen scavengers and other products used to minimize pipeline damage during the stimulation treatments. Other fluids of this nature may be used in future well stimulation activities. Additional information may be found in Attachment O, Stimulation Rrogram. ATTACHMENT H-1 CLASS II~ TYPE 'R' INSECTION WELLS WELL NUMBER EST. AVE EST. MAX DAILY RATE DAILY RATE (BWPD) (BWPD) EST. DAILY EST. AVE EST MAX IN3. VOL INS. PRESS INO PRESS (BW) (PSI) (PSI) NATURE OF ANNULUS FLUIDS Monopod Platform A-~S 353 1000 A-gL 149 500 333 2900 3000 Water 149 2099 3000 Water u.So Er,i¥iHUI'IMEIIT^L, PROTECTION AGENCY l. DATE PREPARED'~J III. TRANSACTION INVENTORY OF INJECTION WELLS U C A. NAME _ C !1, STREET ADDRESS OR IIOUTE C C, CITY OR TOWN C A. TYPE j'm~,rlt °X') D. NA~E (la~t, lir~t, & middle inlfl,,1) C. PHONE (~,ej coc~e & no.) C E, STREET OR P.O. BOX C F. CITY OR TOWN tS. ST H. ZiP CODE Io OWNERSHIP('X' one) UC = UNDER COHSTRUCTION AC = ACTIVE TA = TEMPORARILY ABANDONED WELL OPERATION STATUS~ PA = PERMANENTLY ~BANDONED AND APPROVED ..... _ A, CLASS ~. TOTAL C. WELL OPERATION STATUS C AND TYPE NO, OF WELLS UC AC TA PA AH D, COftfIENTS(opIIonel) EPA Fo, m 7500-48 (1199) '' ATTACHMENT H-2 CHEMICAL &( BEOLOBtCAL LABORATO ...S OF ALA' i(A, IFJC. · TELEPHONE (907) 279-4014 P.O. BOX 4-1276 2603 ARCTIC BLVD ANCHORAGE, ALASKA 99509 WATER ANALYSIS REPORT OPERATOR Union Oil Company of Calif. %VRLL NO. Cook Inlet Water FIELD Tradin~ Bay COUNTY STAT~ Alaska DATE Febr.uary 9, 1972 LAB NO 0138-2 LOCATION Monopod Platform FORMATION Cook Inlet Water INTERVAL /' .... .-. SA~IPLE FROt~ Injection Water , RIIMAP~S & CONCLUSIONS: . Sample taken January 31t 1972. Clear water. 8odium ...... 9490 Potaardum ..... 34..0 Calcium ......... 123 Magnesium ..... 850 ~ . ., ., ,. . ,. ., .mtq/1 Ardon~ 412.78 S~fa te ...... 8,70 Chloride ....... , , 69,87 B~arbonate ..... --- Hydroxide ..... , m~/1 ,.~...~..,. 2100 43.68 16000 451,20. 159 2,61 . Total Cafio*a~ .... . . 497,49 Total dis. solved ~olids, ml~Jl ....... 28981 HaCl equiv~e~t, mall ......... 28740 Obi, lib"ye4 pH .......... , 6,9 Total .A.n/o~ .... 497,49 Spec~c r~.scance ~ 63°F.: 0 ba~awed .... 0, 312 o ...Imr~c~x~ ~:cd .... 0.29 ~~ Ha Ca Mg ICe t'l [[ ii i'1 i l'Ii ~11111!1IIi1~ [lll[lllllll! Illl Illlllll Ifil llll[ il I , Llll[llll~liJ [II[Ill[lllll rFFIlI[I{l] ~1 llllt 1111~ Iii Ll£ill~II[lll Illllll WATER ANALYSIS PATTERN Sample above described Scale MEQ per Unit C1 100 Na HCOs 10 Ca SO, 10 Mg CO a 10 Fe C! HC03 804 CO, (Ns vnh~ In abov~ grmph, indud.~ NOTIt: Mg/l'-'MIlUgrtm~ Mr Ut,r Moo/l-- Millifrtm ,quivtl.uts pm' Utw ~xlkua chloride ATTACHMENT I FORMATION TESTING PROGRAM 40 CFR 146.24 (b) (1) Wells drilled and tested as part of the field development programs have yielded sufficient information to determine the characteristics of the existing injection zones. This testing includes, but is not limited to; drill stem tests and sample analyses, drilling pressure integrity tests (leakoff tests) to determine fracture gradient, injection tests and log analyses for physical rock properties and the presence of hydrocarbons. Information will continue to be collected on all production and injection zones located within the Trading Bay Field, Trading Bay State boundary. Nell logs will be taken to obtain additional information on the rock and fluid properties of the reservoir. As required by AOGCC, reservoir pressure will be monitored on a continuing basis over the extent of the injection/producing areas. Step rate tests will be performed on all water injection wells so that maximum injection pressure can be established. Injection profile tests will be performed randomly at the operator's discretion to monitor the injection points of the fluid. ATTACHMENT STIMULATION PROGRAM 40 CFR 146.24 (b) (2) Stimulation of Class II Injection Wells within the boundaries of the Trading Bay Field may be performed; however, not on a routine basis. Stimulation may include acidization to treat damage and/or reperforation and possibly controlled fracturing to increase injectivity of the injection zone. In addition, small amount of fluid may be injected into various zones as a result of routine maintenance and stimulation. These operations.may include: 1.) 2.) :~.) 4.) 5.) 6.) 7.) 8.) 9.) Acid treatments. Mud-acid treatments. Solvent washes. Corrosion inhibitor treatments. Fracturing stimulation. Diverting (plugging) agents. Well killing operations. Cement squeezes. Cement plugging. ATTACHMENT K INJECTION PROCEDURES CFR 146.Z4 (b) (3) The Trading Bay Field C-Zone and D-Zone reservoirs are using waterflooding to improve oil production. Filtered Cook Inlet water is being injected in wells to maintain reservoir pressure and to drive oil toward producing wells. The flowrate into each well is metered with rate being controlled by a variable choke. The facilities are comprised of surge tanks for source water, charge pumps, water filters, and high pressure injection pumps. The surface equipment to carry out the waterflood from the Monpod is shown in schematic in Attachment K-1. SOURCE WATER ~ HEAT k~'~ E_XCH. i PUMPS VACUUM TOWER 28"hg NORTH SIDE SAND FILTERS VACUUM 28"hg SOUTH SIDE D,E. FILTERS 'D.E. FILTERS ~_j ACCUM.~ TANK 400 bbl. CHG. PI IMPS ~ · · · MONOPOD WATER INJECTION FACILITIES S.K. FILTERS -100~ CENTAUR SATURN INJ. 3000~ 2 VOrtical Turbine Source Water Pumps 75 hp each 2 Vertical Turbine Backwash Pumps 100 hp each _ Vacuum Towers, 5.5' x 25' Filter Charge Pumps, 125 hp each .. 5 Sand Filters, 11' dia. 4 D.E. Filters, 1-600 sq. ft. 3-750 sq. ft. I Accumulator Tank, 400 bbl. 2 Injection Charge Pumps, 1-60hp, 1-125hp 4 Sock Filters, 18 Cartridges each 1-3300hp Centaur Injection Pump 2-1100hp Saturn Injection Pumps REv. DATE -- . I -. t UNION OIL COMPANY OF CALIFORNIA DRAWN ~ CKD. APP'D ............ SCALE -. DA'I' E ............... ATTACHMENT L/M CONSTRUCTION PROCEDURES AND DETAILS Union Oil Company of California requests a waiver of the construction requirements of 40 CFR 146.22 and 40 CFR 147.104 (b) as allowed by 40 CFR 144.16 (a). Union Oil has and will continue to construct and convert all injection wells in accordance with the rules of the Alaska Oil & Gas Conservation Commission and Commission Order #57. All wells, both producers and injectors, are drilled and cased in essentially the same manner. There will be some differences between wells regarding the size of pipe used and the depth at which the pipe is set. The difference between the types of wells is in the method of completion. A producing well is completed with gas lift mandrels in the tubing string. The injection wells are completed without gas lift mandrels and with filtered inlet brine in the tubing-casing annulus. The brine used as annular fluid in some injection wells is treated with a corrosion inhibitor. Attachment L/M-1 provides information on a typical drilling program for the Trading Bay Field. Attachment L/M-2 describes a typical proposed drilling procedure for the Trading Bay Field. Attachment L/M-3 is a typical Trading Bay Field completion. Attachment L/M-4 is a blank completion report. Attachment L/M-1 ~ypical Drilling Program (A-lORD) Type and Classification: Secondary Development (Tyonek "C" and "D" zones). Surface Location: Conductor #31, 1609' N & 571' W. from the SE Corner of Section 4, TgN, R13W, S.M. Target Location: Target "A": Top "C-5" Sand at 4100' SS, +2650'W. and 1300'N. from the SW corner of Section Target "B": Top "53-8" Sand at 5200' SS; +2~O0'E. and 1350'N. from the SW corner of Section 4, T~N, RI~W, Tarqet "C": Bottom hole, at 5~00' SS, +_l~5'E. and l~O'N, from the SW corner, Section 4, TgN, R13W, Objectives: "C"-zone 0il Pool ("C-5" Sand) at approximately 4~50' MD, 4200' VD. "D"-zone Oil Pool ("53-8" Sand) at approximately 5880' MD, 5300' VD. Proposed TD: Bottom hole at approximately 6677' ND, 5999' TVD. Distance out is 2771'. Drillinq Rrogram: The well will be sidetracked at +1200' ND in the 9 5/8" casing in A-lC OH. A directed well will be drilled from that KOP to the E 1/2 of the SW 1/4 of Section 4, T9N, R13W S.M. Logging. Program: DISFL-GR-BHC-Cal, CNL-FDC-GR-EPT-Cal, CBL from KOP of_+1200' to TD. Logs will be taped fpr digitizing. Multishot gyroscopic survey to be run after 7" liner is set in place. Corinq Program: None planned. T,esting. Program: None planned. Completion: Casing Guns, 4HPF. Attachment L/M-2 Typical Drilling Procedure (A-lORD) 1. Run a free point in the 9 5/8" casing down to +_1250' TMD. If casing is not free, a section will be milled in the 9 5/8" casing and the well will be redrilled with 8 1/2" hole from +_~500' TND, (7" casing). If casing is free to +_1200' (probability +_~0%), cut and recover the 9 5/8" casing from +_1200' and redrill the well with 12 1/4" hole, (13 3/8" shoe at 1095'). 2. Test the 13 3/8" shoe to a .54 psi/ft equivalent. Squeeze shoe if necessary. Spot kickoff plug and dress off to +1090'. 4.Directionally drill 12 1/2" hole to +5690' T~D. 5.Run DISFL/GR/BHC/CAL, CNL/FDC/GR/EPT/CAL, from KOR to +6690' TMD. 6.Run an RFT with ten sands being tested. 7.Run and cement 9 5/8" casing from surface to TD. 8. Clean out 9 5/8" casing to float collar, and squeeze for zone isolation as required. Perforate "C" and "D" zones as logs dictate. 10. Run dual 2 3/8" completion assembly. 11. Land tubing, install BPV's, remove BOPE, install and test tree, remove BPV's. 12. Place well on production and move rig. ATTACHMENT L/M-3 5'0-3 vi 51'6 53'0 -- 53'8 ~- 54.'5 VII · VIII , WELL TBS A-SFID2 CASING & ABANDONMENT DETAIL I.) Rotary Table Measurement at 0.00' II.) Cameron Dual Tubing Hanger at ~34.95' I!1.) 13 3/8°, 61~', K-55 Casing at 1075' JV.) Top 5' Scab Liner at 4882' V.) Bottom 5' Scab Liner at 5185' VI.) 9 5/8°, 47~', N-80 Casing 5836' VII.) Cement Retainer at 6430' VIII.) 7', 29,~, N-80 Casing at 710C)' TUBING DETAIL "'~i'LONG STRING: 2 3/8'; 4.6#, N-80 TUBING 1.) Telescopir~g Joint at 4672.19' 2.) Otis 'XA' Sleeve at 47 16.34' 3.) Otis 'RDH' Dual Packer from 4819.29' to 4826.67' 4,) Otis 'XA' Sleeve at 6087.17' 5.) Locator Sub at 6121.40' 6.) Baker Model 'WD' Packer with Seal Assembly from 6121.80' to 6142.74'. Packer at 6121.80' 7.) Otis 'X° Nipple at 6143.15' 8.) Bottom of Mule Shoe at 6174.24' SHORT STRING: 2 3/8", 4.6-~, N-80 TUBING A.) Telescoping Joint at 4739.03' B.) Otis 'XA' Sleeve at 4783.31' C.) Otis 'RDH' Dual Packer from 48 19.59' to 4826.67' D.) Otis 'XN' Nipple at 4829.44' E.) Bottom of Catcher Sub at 4835.41' PERFORATION RECORD DA TE 6/02/84 IN TER VA L 6400'-6424' 6309'-6359' 6192'-623 1' 6001'-6089' 5726'-5763' WELL TBS A-SRD2 WELL SCHEMATIC UNION OIL COMPANY OF CALIFORNIA CONDITION D Zone Injection D Zone Injection D Zone Injection C Zone Injection C Zone Injection A'IT,\CJ 13LENT L/5I- 4 BLANK COMPLETION REPORT'; STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION GOMMISSION 1. Status of Well Classification of Service Well OIL I-'1 GAS [] SUSPENDED [] ABANDONED [] SERVICE [] 2. Name of Operator 7. Permit Number 3. Address 8. APl Number 50- 4. Location of well at surface 9. Unit or Lease Name At Top Producing Interval At Total Depth 5. Elevation in feet (indicate KB, DF, etc.) I 6. Lease Designation and Serial No. I 12. Date Spudded 13. Date T.D. Reached 14. Date Comp., Susp. or Aband. 17. Total Depth (MD+TVD) 18. Plug Back Depth (MD+TVD) 10. Well Number 1 1. Field and Pool 15. Water Depth, if offshore feet MSL 2:2. Type Electric or Other Logs Run 19. Directional Survey YES [] NO [] 16. No. of Completio 20. Depth where SSSV set 21. Thickness of Permafrost feet MD 23. CASING, LINER AND CEMENTING RECORD CASING SIZE 'WT. PER FT. GRADE SETTING DEPTH MD TOP BOTTOM HOLE SIZE CEMENTING RECORD AMOUNTPULLED 24. Perforations open to Production (MD+TVD of Top and Bottom and interval, size and numbe,') 27. ' 25. SIZE 26. TUBING RECORD DEPTH SET (MD) I PACKER SET l~..! D~ I ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) IAMOUNT PRODUCTION TEST & KIND OF MATERIAL USED Date First Production Date of Test Hours Tested · Flow Tubing Casing Pressure Press. 28. I Method of Operation (Flowing, gas lift, etc.) IPRODUCTION FOR IOIL-BBL GAS-MCF ITESTPERIOD ~1~I 124-HOOk RATE -r I CORE DATA ICHOKESIZE IGAS'OIL RATIO OIL.GRAVITY-APl (c~r) WATER-BBL WATER-BBL Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water. Submit core chips. Form 10-407 Rev. 7-1-80 CONTINUED ON REVERSE SIDE Submit in duplica Attachment 0 Plan For Well Failures 40 CFR 146.24 (b) (4) Operators on the platform routinely monitor all wells to check for any abnormal operational condition, While at the well, the operator routinely checks the condition of controls, the annulus pressure and other well parameters. In case of a well failure where environmental impact is occurring at the surface as a result of such a well failure, spill prevention control and countermeasure (SPCC) plans are available on the platform. These documents provide information on the maximum quantities of fluids likely to be encountered in a spill, flow' direction of spilled liquids and other pertinent information necessary to control a spill. Also, an oil spill contingency plan is available, which provides additional guidance, on spill containment and clean-up procedures. In case of a well failure where below surface environmental impact is occurring as a result of such a well failure, all available data will be reviewed and the appropriate steps taken to eliminate the' problem. Depending on the circumstances, actions such as pumping of "kill" weight fluid into the wellbore, setting of plugs in the wellbore, shutting in the well until repairs can be made, or other remedial actions will be performed. Attachment P Monitoring Program CFR 14~.24 (b) (5) Union Oil Company of California requests a waiver of the monitoring requirements of 40 CFR 14~.23 (b), as allowed by 40 CFR 144.1~ (a). Union Oil Company will monitor all injection wells in accordance with the regulations of the Alaska Oil & Gas Conservation Commission. The monitoring program includes continued determination of injection rates with flow meters. Injection volumes along with tbg and csg pressures are recorded daily. Reporting Requirements Union Oil Company of California requests a waiver of the reporting requirements of 40 CFR 14~.23 (c) as allowed by 40 CFR 144.1~ (a). Union Oil Company will submit reports to the Alaska Oil & Gas Conservation Commission in accordance wi th the commission order applicable to the Trading Bay Field, Trading Bay State Lease. Attachment Pluggi~,g and Abandonment Plan 40 CFR 146.24 (d) Plugging and abandonment of all wells meet or exceed the requirements for the abandonment of wells as outlined in Article 2, Section 20 AAC 25.105 of the Alaska Oil & Gas Conservation Commission Regulations. This includes setting a cement plug across all open zones isolating them. Figure ~-1 - Example Schematic of Plugged Well Attachment 0-2 - Sample Abandonment Report ATTACHMENT Q- 1 TYPICAL PLUGGED BACK WELL SCHEMATIC 13 3/8' CASING CEMENT RETAINER DUAL PACKER SINGLE PACKER CEMENT RETAINER 9 5/8" CASING union ALASKA ...................... u_" ' o .*. P_ '_' ~ ~ ~_ ~; _~ '_', t, ~_.~__?..' ,_'_-_'.~ "_., ~_~ "_ UIC PERMIT APPLICATION MONOPOD PLATFORM TRADING BAY FIELD i ii ii ] STATE OF ALASKA ~ ATTACHMENT q-2 ALAS OILAND GAS CONSERVATiOh~ MMISSION SAMPLE ABANDOhHENT SUNDRY NOTICES AND REPORTS ON WELLS REPORT DRILLING WELL F-] COMPLETED WELL ~ OTHER . 2. Name of Operator 7. ~.~l~_l~ o' UNION 0IL CONPANY OF CALIFORNTA 3. Address 8. P Nu ~, - P.O. BOX 6247, ANCHORAGE, ALASKA 99502 5o~3-~11-01_ TRADING BAY STATE Conductor #32, 1605'N & 568'W of SE Corner, Section 4, TgN, R 13W, S.H. · 5. Elevation in feet (indicate KB, DF, etc.) RT 101t HSL 6. Lease DesignatIon and Serial No. ADL 18731 10. Well Number TBS A-5 RD #2 1 1. Field and Pool TRADZNG BAY FIELD 12. Check Appropriate Box To Indicate Nature of Notice, Report, or Other Data NOTICE OF INTENTION TO: SUBSEQUENT REPORT OF: {Submit in Triplicate) (Submit in Duplicate) Perforate [] Alter Casing I--I Perforations '~ Altering Casing Stimulate [] Abandon ' I-] Stimuiation ;~ Aban0onment Repair Well [] Change Plans .... ;' I-] Repairs Made [] Other Pull Tubing [] Other [] Pulling Tubing ,~ (Note: Report multiple completions on Form 10-407 with a submitted Form 10-407 for each completion.) 13. Describe Proposed or Completed Operations {Clearly state all pertinent details and give pertinent dates, including estimated date of starting any proposed work, for Abandonment see 20 AAC 25,105-170). 1. Move rig #56 over TBS A-5 RD #2 & rigged up. 2. Killed well w/ FIW, installed BPV, removed tree, installed and tested BOPE to 3000 PSI 3. Pulled & laid down existing dual completion assembly when dual pkr became stuck in bad 7" csg ~ ~ 5000' MD. Pushed dual pkr down hole & swedged & milled on collapsed csg f/4999'-5003' OPM. 4. Cleaned out wellbore to 5. Abandoned the lower "O" cmt below cmt ret set ~ e 6462' DPM. zone sds; 6430' DPM. (57-2), (56-1) & (54-9) w/150 sxs of Ran csg inspection logs & CBL-GR-CCL-VDL f/5426' WLM to surface. Reperforated the old "O" zone sands as follows- ..~ 54-5 sd f/6400'-6424' DIL w/4 HPF 53-8 sd f/6309'-6359' DIL w/4 HPF Perforated new holes in wellbore as follows: "D" Zone -'53-0 sd f/ 6192'-6231' DIL w/8 HPF "C". Zone - 51-6 sd f/ 6089'-6049' DIL w/8 HPF "C" Zone - 51-6 sd f/ 6149'-6001' DIL w/4 HPF '"C" Zone - 50-3 sd f/ 5763'-5726' DIL w/8 HPF The 51-6 sand in the "C" zone required 76 POF fluid to control observed pressures. · Acidized the old "D" zone sands (54-5, 53-~) w/ 154 ft3 of 15% HCL. 14. I hereby certify that the foregoing is true and correct to the best of my knowledge. Signed . . . "-...~._ ~ . Title ENVIRONMENTAL TECH. The spacu-uelow for Commission use .~ate 9/19/84 Conditions of Approval, if any: BV Order of Approved by COMMISSIONER the Commission Form 10-403 Date Rev. 7.1-80 Submit "Intentions" in Trlphcate and "Subsequent Reports" in Duplicate SUNDRY NOTICES AND REPORTS ON WELLS PAGE 2 JUNE 1984 11. Washed the new "D" zone & "C" zone perforations w/completion fluid (Ca C1 in ~iltered inlet water). 12. Acidized the 53-0 sd ("D" zone) w/73 ft3 of 15% HCL. 13. Acidized the 50-3 sd ("C" zone) w/57 ft3 of 15% HCL. 14. Profiled the "O" zone sands; (54-5, 53-8, 53-0). 15. Acidized the 54-5 sand again after profile showed sand not taking any fluld. 16. Profile after reacidizing the 54-5 sand showed very little fluid injection into this sand. 17. Profiled the "C" zone sands (51-6, 50-3) 18. Found coal fill on bottom of wellbore on clean out run. Inflow tested the "C" zone sands to determine where fill same from. Fill not coming from "C" zone per test.' 19. Ran 5" scab liner across bad csg ,~ + 5000' MD. 20. Complete well w/dual 2~,~./8" completion assembly w/Otis perm "~D pkr ~ 6120' DIL above the "D" zone sands and Otis "ROH" dual hyd pkr ~- 4819' tbg meas above the "C" zone sands. 21. Set BPV's, removed BOPE, installed & tested xmas tree to 5000' psi, OK. 22. Put well on injection. 23. Released rig ~ 12:00 hfs, June 4, 1984. Form Approved. OM8 No. 2040.0042. A/aproval expires 9-30-$6 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY' EPA WASHINGTON, DC 20460 PLUGGING AND ABANDONMENT PLAN _ NAME AND ADDRESS OF FACILITY NAME AND ADDRESS OF OWNER/OPERATOR Monopod Platform Union 0il Company of California Cook Inlet, Alaska 909 W. 9th Avenue, P.O. Box 6247 Anchorage, Alaska 99502 STATE I COUNTY I PERMIT NUMBER LOCATE WELL AND OUTLINE UNIT ON AK Kenai Peninsula Borough Sample SECTION PLAT -- 640 ACRES SURFACE LOCATION DESCRIPTION . SE',4 OFNE,~ OFSE,~ SECTION' 4 TOWNSHIP9N RANGE 13W I J I I I I LOCATE WELL IN T~NO DIRECTIONS FROM NEAREST LINES OF QUARTER SECTION AND DRILLING UNIT ~---I- I -1- q-, I q--- Su,ace 1030~ N I I I I I I Location . from (N/S) Line of quarter section --TTT TTT-- and 570 .. from <E/W) E Line of quarter section ---1- I -t- -i- I -~-'-" TYPE OF AUTHORIZATION WELL ACTIVITY I I I I I I [] Individual Permit [] CLASS i .-" W I ] I J J J E l:('l Area Permit [] CLASS II _..L__La_,, ! _L__L_L_ [] PuL [] Brine Disposal I I I i I I I m Enhanced Recovery i---~--'-~"~" ..~---..~-J.2__ Number of Wells 1 [] Hydrocarbon Storage '__I___JL__L /__L_L_ [] cLAss ,,, S Lease Name Tradin,q Bay State Well Number 50-733-20011-01 CASING AND TUBING RECORD AFTER PLUGGING METHOD OF EMPLACEMENT OF CEMENT PLUGS [] The Balance Method SIZE WT(LB/FT) TO BE PUTIN WELL(FT) TO BE LEFTIN WELL(FT) HOLE SIZE [] The Dump Bailer Method -13-3/E 61 1075 1075 17~/2 [] The Two-Plug Method 9-5/8 47 5836 5836 12/4 [] Other 7" 29 7100 7100 8/2 , CEMENTING TO PLUG AND ABANDON DATA: PLUG #1 PLUG #2 PLUG #3 PLUG #4 PLUG #5 PLUG Size of Hole or Pipe in which Plug Will Be Placed (inches) 7 7 Depth to Bottom of Tubing or Drill Pipe (ft.) 5650 5550 Sacks of Cement To Be Used (each plug) 142 19 Slurry Volume To Be Pumped (cu. ft.) 163 22 Calculated Top of Plug (ft.) 5650 5550 Measured Top of Plug (if tagged ft.) 5650 5550 Slurry Wt. (Lb./Gal.) 15.8 15.8 Type Cement or Other Material (Class III) ClaSs G Class G LIST ALL OPEN HOLE AND/OR PERFORATED INTERVALS AND INTERVALS WHERE CASING WILL BE VARIED fir an)// ,,, From To From To Estimated Cost to Plug Wells $250,000 CERTIFICATION I certify under the penalty of/aw that I have personally examined and am familiar w/th the information submitted in this document and afl attachments and that, based on rny inquiry of those individuals /rnnrned/ately responsible for obtaining the information, I believe that the information is true, accurate, and cornp/ete. Iarn a ware that there are significant penalties for submitting fa/se information, including the possibility of f/ne and imprisonment. [Ref. 40 CFR 144.32J _ NAME AND OFFICIAL TITLE (Please type orprint) SIGNATURE DATE SIGNED _District 0perations Manager I I I I I I ---I-Iq- q-,I-J--- I I I I I I --TTT TTT-- --q-lq- -i-lq--- I I I I I I I I I I I I I I I I I I _iii iii_ EPA Form 7520-14 (3-84) Attachment R Financial Resources 40 CFR 146.24 (a) (9) Union Oil Company of California is the operator of the Trading Bay Field, Trading Bay State Lease and is responsible for obtaining UIC permits. Attachment R-1 is a copy of documentation to demonstrate financial assurance for Union Oil Company operated facilities within Alaska. ..: 10 . ATTACHit~ENT R- 1 DEPART~h%t~ OF NATURAL RESOURCES Dlviaion of La~ds · . . 'Stat~ide Oil and O'as Bond 11 · 13 cs principal, and ~ho:e address is · . . as surety, are held' and fir~l'y~o~nd uato the State of'~la~ka ""' " ~:' ia thc su~ of One' · , , _' Huudred Thousand Dollar~ ($%00~.00), ~aw~l ~noy of the Unit~ S:a~es for . . ~ · , , the 'usa and Benefit of (1) :h~ S~ate of,Alaska, (2)' ~y ~er of a portion of" ' . · ,,., '~ . ' . '.. .. . c~pen~a~ion ~n Connection vith a ,~ese~a~icn o~ ~ha oil ~ ~as deposits ~ . ~ '~' . ~ . . . ,. "ii,he Sca~e of Alaa~, and (3)~y .lessee or pe~i~Cea under a lease.or' pa~i~. ~ ' ~ . ... , ~ued by the S~a~e of Alas~ prior' ~o ~he issuance ot an Oil or ~as ~asa ~or .. . uhe ~e land sub~e~ to chis ~nd, c~eri~ the use oi ~ha surface or ~he ...' .. ~ , .' . , p~o~pcc~ina ~or or develop=an~ of o~her mineral depooi~a in ~y portion o~ such. . . ~ · l~d, Co be paid ~o ~he Suace of Alaska'.'i For such pa~en~ vail ~ ~ly ~o be ,,~' ~,, ada ye b~nd our~1vea and each ~ us and each of our hairs'~. ~ecutors, ' · ~,, ~ , ' . a~n~sCrators, auccessore aaa ass~Sua; '~iu~ly and 's~erally ~y. these preaenus. ' The cond[Cions'o~ ~he ioreaoina obll~acions.are such ~ha~, , '~.'". ,. ~;' '.. . ..' .... pri~c~pal in one or ~re of the [ollo~[n~' rays has ~ interest ' ~n o~1 and gas leases on lands o[. ~h~S~a~e oi .Alaska under ~hs jurisdic~i~ ;' .,' : . ' . " ~ ., · ' · ' .. .':,'' '~,YS'' ~.'""?,.r. · .,.'4 ' % "' . .. · . . '. ~ ~ :'..',,~'...::,',').~ · .. ,. . -'..'~,.r,,':z-;':~.: ~.,, . ' ~' ' m '% ... . . :. .. . · . . · . . · 'i '" ' '' ~ .... '" '"~'" ~ ' . ~ ... : ~ · .. . . .~ ~"' ,~ .~ .:L','.' " .... ~.,u~ . . · .... './..,..',?' ,;... ..: .. the Division of . the r -~ , ~ral Resourc os the lessee of such 1~ {2) as..c~e apl .der o~ ,~h~s in all or par~ of the 1~ overed by such ader operating ,'.'~ee~ncs vith" · o · .' .~ . l the lessee~ and (. ~'signated o.. ' agent under ouch leases'pending approval of an as. .~enc ~'r ODeratir,. .-'-~',:ement, i-~,~. -,..>,. f..' B, The i:..'~ncipal is authori:a, to drill for, explbre.'for~ kievelop, ~ ~', "/:-cf/~ " . produce, process, ~..'~ market eL1 and ~.'-; g~posits in or"un~e~ t~a'la~ds ' '" · .. · covered by such leases and is-obli~atea aa comply ,rich cer~-~in covenants a~d · .'. agreeaenta sec ~orch in such' leases. ~ ' ~ ~ . t., C. The principal and ~ur,'ety a~ree that the coverage bi this bond shall extend Co all of the pri'~cipal's'holdi~gs under such lea,--cs, in-~be-$;ata · of Alaska, and without notlce:',.ffo .the surety'shall also extend to 'and includs: ? 1. Any such oil and gas leaG~ hereafter issued to or acquired by the principal, the covera$e co become effective in=edia~ely upon such issuance or upon approval by ~he State Of ~Alaak~ of a transfer in favor of the principal 2. Any such operatina.,a~reeaent hereafter entered lnco or acquired by the principal, the c~o~erage to become effective i=mediately upon approval by . · the gta~e o£ Alask~ ot~ the a~re~nent or et a transfer et such a~ agreement to the Principal; " 3. ~y designation.he~fter of the ~rin:t~ll aa operato~ or agent of a lessee under such a leas, e,~the, coverage to become effective immediately upon the filint of such a d. psigna~ion'v~th the Scats'of Alaska; and . .. 4. Any'extension o£'a leasa covered by. this bond, such coverage to · · continue ~ithou~ any interruption due to the. expiration of the term set ~orth in th~ lease; / · Provided, that the surer; may elect,to have the additional coverage authorized under thi~ Paraaraph C beco, me inapplicable as to all°'interests of 'the principal acquired ~ore than 30 da~s 'after the receipt of. vritten notice o[ such election by the DiviSion of Lands. "~' ' "' ' '"'' · ' . " ..... ~", '. ...' .... ... ".,,' : ' .::" "[/ "~'~:~i ~':' '..~,. ." .'.:... "-, "' ..... · ... ,. · : , ' . . ....:.:.f":.,';.:.',.. :,,-'." .. . , ,. ' .~', "..,.. . .,:..., -. · , : -~ ~ . .... .,. .:,.., /,';, ' ,..,~.. ', ,-, '..' .... . .._ ..,.; ... . , .' ,..~ .:.', :. ' 2,' ~; -:: .' .. ! ','i) .: :..'i :", '" ... .,: ..',..-. " ' ' ' ~, '". ,, "..',i:'~'~.','.;"..";.;';':'.',(::'~ ~.: .:: ..... ' :,., · -' . 't ' '..,' .. '[~ · ..' ..: ,.~. '..~' ',~ . .~ .... ' . '~" ,.~ ''.' ,-. ", · . ~',. - ..... -'". ..... '.-.- ~ .... -'..'-, ~,':~'.".'~:~,,~,~.~k,'..~ ,~' :'. -_~ ; ~;l~ .'., ~g · .~ · ,' .%. J . · , 1 8 4 8 7 I0 .- 11 L~ 13 ,. 14 16 17 18 · · 19 · 20 .. · D. The surety hereby waives any right to notice of and agrees that this bond shall remain in full force and effect notwithstanding: 1. A transfer or transfers either in whole or in part o~.any Or all of the leases or of the operating agreempnts, and further agrees to remain bound under this bond aa to the interests either in ~ha leases, oran t~e ~per- acing agreements or in both retained by the principal when'the,ppproval 0£ the . transfer or transfers beeomes.~ffective; l. Any modif%ation of a lease or operating agreement or obligations thereunder whether made og ~ffected by commitment of such lease or operating · agreement to uni~, cooperative, corm=unit~zation, or storage agreements, or · development contracts, suspensions of operations or production,' waivers,'sus; pensions, or changes in rental, minimum royalty and royalties, compensatory royalty payments, or otherwise. E. The principal and surety agree that notwithstanding the termina- tion.of any lease or leases, operating agreements, or designations as operator or agent covered by this bond, whether the termination is by operation of law · or otherwise, the bond 'shall remain in full force and effect aa =o all remain- ing leases, operating agreements, or. designations covered by the bond· . . Y. The principal as to any lease or part of a lease for lands as to which he has been design~ted..as op, era~or or agent or approved as operator in consideration of being permitte~ tO furnish this bond in lieu of the l'e;sees agrees and by ~hese presents ~oes hereby bind himself ~o fulfill on behalf of each lessee all the obligatio~s o£ each such lease for the entire leasehold in the same manner and to the same extent as though he were the lessee. G. Th~ principal and sure~y agree that notwithstanding any payments made by the surety by.reaso~f legal 6bligations arising under the bond, the bond shall remain in full fo~e and effect in the sum above set forth without any deduction therefrom, for such payments and the coverage of this bond shall remain the same unaffected, by the payments or by the defaults gi~ing rise to the · . · , . · ~o · · .f '-1 .! 1 6 ? -' ~0 l! . '15 ' 10 17 10 . · obligations. H. The ~rin¢ipal and surety agree thc= the ne$1ect or forebeacance of the lessor in' enfor¢in~ as agains= ~he lu~sees of such lessor, the paymen= rentals or royal=les or the performance of any other covenant, condl~ipn, or ag=e~ent of the leases shall .or in an~ ~ay release t~e p=~¢ipal and surety or e~ther of them Z~om any liability under this bond. · . · I. T~e principal and ~ure~y agree ~ha~ ~n the event of any default under the leases the lessor may commence and ~rosecu~e any ¢.laim, %o~ . or other proceeding against the principal and surety or either of them vithout the necessity of Joinint the lessees. N~;~ THEKEFO~E, if said principal s~all in all respects iai~hfully c~ly ~i=h all of =he provisions of ~he lea~es referred co hereinabove, ~h~ =he above obltEa=ions are =o be void; o~he~ise, ~o r~ain in full forc~ and Da=ed ~his ~th day of ~ov=~r , 19 UNION OIL COF/3AS"f OF CALIFORNIA By I~IITED PACIFIC INSURANCE COMPANY ,, Countersigned: ~ ~...%NCE AGER~Y · % J~¢. C~:~om, A~Sorney- ln-Fau: RIDER To be attached to and form part of Bond No. B-55372 Insurance Company (hereinafter called Surety) on behalf of Union Oil Company of California in favor of State of Alaska .. issu'ed by United Pacific (Employee or Principal) (Employer or Obligee) It is hereby agreed that: Subject to all the agreements, Conditions and limitations of the attached bond, including all riders attached thereto, the penalty thereof shall be, and the same is hereby* increased from One hundred thousand ahd no/100 .................................. Dollars, ($100,000.00 ) to. Five hundred thousand and no/100 .................... Dollars, ($ 500,000.00 ) as to losses sustained on and after the 8th day of .September 19 80 , and also, in the event the penalty is decreased by reason of this agreement, as to losses sustained prior to said last mentioned date and not discovered within a period thereafter equal to the period allowed in said bond for discovery of loss thereunder following cancellation, termination or expiration thereof. · The maximum liability of the surety",: for all losses on account of the Employee or Principal shall not exceed a sum equ~l to the largest amount of suretyship in force as to such Employee or Principal during any period within which default shall have occurred, nor shall the surety- ship granted for one period cover defaults occurring within some other period. Signed, sealed and dated September 8, 1980 The foregoing is hereby requested and expressly agreed to By (Employer or Obligee) (Title) If bond penalty is being increased insert "increased" - If bond penalty is being decreased insert "decreased". Change of Penalty Rider BD-1462 Ed. Feb. 1964 Countersigned- Shattuck & Grummett, Inc. Re!~lent Agent, J~neau, Alaska JoVan M. Shelton, Attorney-in-Fact Attachment S A§uifer Exemptions 40 CFR 147.102 (b)(2)(D) All portions of aquifers 'lying within and below the area of review for this permit are exempted aquifers for Class II injection. See Attachment D/E-1. Attachment T Existing EPA Permits Union Oil Company of California has the following ERA permits pertaining to the Trading Bay Field, Trading Bay State: Water Discharge: NPDES Permit #AK-O0004?-? Attachment U Description of Business Union Oil Company of California is a wholly-owned subsidiary of UNOCAL Corporation. As operator of the Monopod Rlatform, the nature of Union Oil's business is to engage in all acti¥ities relatiYe to the exploration, production, transportation, refining and marketing of oil and gas. The Trading Bay Field, Trading Bay State is located approximately 25 miles northwest of the City of Kenai, Alaska. The Trading Bay Field is singly operated by Union Oil Company of California.
