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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. -~'--~F-I- Conservation Order Category Identifier Organizing Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) [] Diskettes, No. ¢.,...~-Maps: [] Other, No/Type [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with la'~''' Logs of various kinds [] Other Scanning Preparation Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: ~..~' ~,/'~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ~ YES //~ NO Stage 2 IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES ~ NO ,.-~'~ MARIA DATE:~..~ ~ ~ /S/~ (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY~ GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd STATE OF ALASKA DEPARTMEilT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Con~nittee 3001 Porcupine Drive ~1 Anchorage, Alaska 99504 Re: THE APPLICATION OF UNION OIL COMPAI"IY ) OF CALIFORNIA for an order permitting a ) pressure maintenance project for the ) McArthur River Field and the motion of the ) Alaska Oil and Gas Conservation Committee ) to establish field rules within tile ) McArthur River Field. ) Conservation Order No. 71 McArthur River Field: Pressure Maintenance Project and Field Rules Hemlock Oil Pool Middle Kenai Gas Pool March'28, 1969 IT APPEARING THAT: 1. Union Oil Company of California submitted a petition dated January 10, 1969, requesting the referenced project pursuant to Section 2226 of the Alaska Oil and Gas Conservation Regulations. 2. The Alaska Oil and Gas Conservation Committee moved to hear testimony on rules for the referenced field. 3. Notice of the hearing was published in the Anchorage Daily News on January 27, 1969. 4. A public hearing was held in the City Council Chambers of the Z. J. Loussac Library, Anchorage, Alaska, on February 27, 1969. Testimony was presented in support of the petition and on the proposed field rules. AND IT FURTHER APPEARING THAT reservoir performance data as shown at the hearing indicate the feasibility of a pressure maintenance project and that such a project should be approved. AND IT FURTHER APPEARING THAT pools should be defined and field rules prescribed for the regulation of sucl~ pools. NOW, THEREFORE, IT IS ORDERED that the rules I]ereinafter set forth apply to the following described area: Township 8 North, Range 13 West, Seward Meridian Sections 4 through 8: All Section 9: W~, NE~ Section 16: W$~ Sections 17 through 20: All Section 29: NW¼ Section 30: NE~ CONSERVATION ORDER ilO. 71 Page 2 Marci~ 28, 1969 Township 8 North, Range 14 West, Seward Meridian Section 1: All Section 12: E~:~_, NW¼ Township 9 North, Range 13 West, Seward Meridian Section 9' S-~_ Sect.i on 1L:~: SW~ Sections 15 through 17: All Section 18: S$~ Sections 19 through 22: All Section 23: W~ Section 26: Sections 27 through 34: All Secti on 35: NW~ Township 9 North, Ran~.e 14 West, Seward Meridian Section 24: Section 25: E~ Section 36: NE~ Rule 1. Definition of Pools. (a) The McArthur River Hemlock Oil Pool is defined as the accumulation of oil common to and which correlates with the accumulation found in the Union Grayling No. lA well between the depths of 9,372 'Feet and 9,897 feet. (b) The McArthur River Middle Kenai Gas Pool is defined as the accumu- lation of gas common to and which correlates with the accumulation found in the Union Trading Bay Unit No. G-18 well between the depths of 5,360 feet and 6,010 feet. Rule 2. Casinq and Cementing Requirements. (a) Surface casing shall be landed at not less than 2,000 feet and cement shall be circulated to the sea floor. Casing and control equipment shall be hydrostatically tested to not less than 1,000 ' pounds per square inch pressure before drilling the shoe. (b) Production casing shall be landed through the completion zone and cement shall cover and extend to at least 500 feet above each potentially productive sand interval. The use of multi-stage cementing procedures shall be permitted. Alternatively, a casing string shall be adequately cemented at an intermediate point and a liner landed through the com- pletion zone. If a liner is run, the annular space behind the liner CONSERVATION ORDER I'.tO. 71 Page 3 March 28, 1969 shall be filled with cement to at least 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. Cen~ent must cover all potentially productive intervals behind the liner. Casing and well head equipment shall be hydrow statically tested to not less than 2,000 pounds per square inch ' pressure. Rule 3. Bottom Hole Pressure Survey.s.. A key well bottom hole pressure survey shall be made in the McArthur River Hemlock Oil ~Pool and the McArthur River Middle Kenai Gas Pool upon Committee request; provided, however, such surveys shall not be required more often than twice in any calendar year. The time and length of survey, number and locations of wells, datum and other details will be determined by the Committee upon consultation with the operators. Rule 4. Pressure Maintenance Project. The injection of water for the purpose of pressure maintenance, secondary recovery or of conducting injectivity tests is hereby permitted in the McArthur River Hemlock Oil Pool. A 'semiannual progress report detailing project operations and results shall be submitted to the Committee in January and July of each year. Rule 5. Administrative Approval. Upon request of the applicant and a showing that the affected parties have been notified of such request, the Committee may authorize the con- version or drilling of any well at any location, the termination or suspension of the project, or any operation reasonably designed to further the purposes of the project. CONSERVATION ORDER NO. 71 Page 4 ~tarch 28, 1969 DONE at Anchorage, Alaska, and dated March 28, 1969. Harry ~. Kug~'er/, Acting Ex'e~uti'~'e "Secretary Alaska Oil and Gas Conservation Committee Concurrence: Thomas R: Marshaql, Jr,' Act~g cpairman Alaska Oil and Gas Conservation Committee O.~K'. ~fi6ret'h,~Jf',~. ~..~ber as designated by the Deputy Con~nlSSloner Alaska Oil and Gas Conservation Committee ~<~rl L. '~on~e'rAhe, Hember Alaska Oil and Gas Conservation Committee Union Oil Company '~"[~'' ;alifornia 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 WEST FORELAND AREA STATE OF ALASKA Waiver of Noncompliance with Administrative Procedure Act Conservation File ~% 71 Dear Sir: Executive Secretary Alaska Oil & Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 In accordance with Notice of Public Hearing published January 27, 1969, con- cerning Conservation File No. 71, Union Oil Company of California solicited from all affected parties their waiver~of any noncompliance with. Ch~ Title 44, Alaska Statutes (Administrative Procedures Act) in the notice and con- d 'U~'t~'m~Ti'~'~ih ~'~ .... E~fl'b'I'o's'e d"' 'ar~'"c op"te~'' "~ i~' 'th ~ ~'~ ~ ~/~' r'~ '~ '~ C e i ~ e (~'" f'~'~" '~h~"'~' 0 I- Marathon Oil Company Standard Oil Company of California Atlantic Richfield Company Texaco Inc. The Superior Oil Company Sinclair Oil Corporation Also enclosed are copies of letters directed to the Executive Secretary, Alaska Oil & Gas Conservation Committee which indicate the waivers of Pan American Petroleum Corporation on behalf of the Chakachatna Group, Skelly Oil Company and Atlantic Richfield Company. Union Oil Company of California hereby waives any noncompliance with the Administrative Procedures Act. Yours very truly, UNION OIL COMPANY OF CALIFORNIA Operator By:_ Its- A toI~ne-y- in- Fac FORM401-ANC (REV. 8/67) / · McARTHUR RIVER FiELD TRADING BAY UNIT PRESSURE MAINTENANCE PROGRAM AND FIELD RUt,ES CONSERVATION t?ILE NO. 71 Public t-tearing February 27, 1969 Introduction- Anderson: The McArthur River Field has now reached the stage wher~ development cannot continue using the best conservation and engineering practices to maximize the recovery of oil and gas, without the application of the proposed pressure maintenance project under field rules which will be presented here today. The McArthur'River Structure was discovered in October of 1.965 by the · Grayling lA well drilled from a drilling vessel, on Union-M~rathon lease ADL 17594. This structure was confirmed in June of 1966 by the Pan' American North Redoubt State %1 well drilled from a floater on Pan Amer- ican et al leaseADL 17579. In August and September of that year the Union Kustatan %lA well drilled on lease ADL 18729, the Atlantic Rich- field West Foreland Unit ~.3 we].l drilled on lease ADL 18777 and the Atlantic Richfield McArthur State ~1 well drilled on ADL 18772 further extended the accumulation of oil and gas on this structure. Two years ago today, February 27, 1967, the Commissioner of the Department of Natural Resources of the State of Alaska approved the Unit Agreement for the Development and Operation of the Trading Bay Unit Area, State · . of Alaska, as authorized by Alaska Statute 38.05. Said Unit Agreement was executed by Union Oil Company of California, as operator and ratified and joined by Marathon Oil Company, Atlantic Richfield Company, Page Pan American Petroleum Corporation, P~illips Petroleum Company, Skelly Oil Company, Sinclair Oil & Gas Company, Standard Oil' Company of Calif- · ornia, and Shell Oil Company. The Grayling, King Salmon and Dolly Varden Platforms were installed in the summer and fall of 1967. Development dril- ling began on the Grayling Platform in August of 1967, on the King Salmon Platform in October of 1967 and on the Dolly Varden Platform in December of 1967. As of today there are 42 wells completed and 6 wells drilling within the Unit Area. Development drilling is continuing from the two rigs on each platform, with the G-16 and G-17 currently drilling from the Grayling Plat- form, the K-10 and K-15 drilling from the King Salmon Platform and the and D-17 dril. ling from the Dolly Varden Platform. The current daily oil pro- duction from the Trading Bay Unit is approximately 80,000 bbls from the Hemlock Formation. The cumulative production from the Trading Bay Unit, McArthur River Field through January 1969 was approximately 25;009,000, bbls of oil from which the State of Alaska has received approximately $7,000,000 in royalty. The McArthur River. Field development has now pro- gressed to the point that the Unit participants agree a pressure maintenance. project must be initiated to maximize the recovery of the resource. Field rules should be established at this time to implement this pressure mainte- nance project. In order to maintain a complete record, let me read the ap- plication for the proposed pressure maintenance program ,for the McArthur River Field into the record of this hearing. (READ) We submit the following proposed field rules for the Committee's consideration and approval. (READ) Testimony in support of this application will now be given by Mr. G. H. Laughbaum, Jr., Acting Chairman of the Geologic Subcommittee of the Page Trading Bay Unit andMr. W. H. Elliott, l'r., Chairman of the Engineering and Planning Group. of the Trading Bay Unit. Neither of these gentlemen have been qualified as expert witnesses in the State of Alaska. Iwould like to submit their qualifications at this time and it is requested that after reviewing their individual qualifications these gentlemen be established as expert witnesses. Mr. Laughbaum Mr. Graydon H. Laughbaum, Ir., is District Development Geologist for the Anchorage District, Western Region of Union Oil and Gas Division, Union Oil Company of California. In 1962 he received a BS in Geological Engineer- ing from the University of Oklahoma where he was a member of Tau Beta Pi, Sigma Tau, and Sigma Gamma Epsilon honorary societies. .In addition he has completed graduate courses in engineering and geology at the University of California at Los Angeles. He worked as a reservoir engineering ~rainee for , Atlantic Richfield in 1962, leaving that company for military service. In 1964, he was employed by Union Oil Company of California. For two years he engaged in surface and subsurface work in California, including explora- tion and development of offshore areas..Since arriving in Alaska in ].966, bis work' has been concerned primarily with the geology of the Cook Inlet Basin to include subsurface studies of the Kenai Gas Field, Beaver Creek Gas Field, Trading Bay Field, McArthur River Field, and the Granite Point Field. He became District Development Geologist, Anchorage District, in March 1968., W. H. ELLIOTT: JR. QUALIFICATIONS FOR EXPERT %YlTi~ESS - STATE OF ALASKA February 27, 1969 Mr. W. H. Elliott~ Jr. is Chairman of the Engineering & Planning Group for the Trading Bay Unit and a Senior Petroleum Engineer for Marathon · Oil .Company, Los Angeles Division, Anchorage District. In 1951, Mr. Elliott received a B.S. degree in Petroleum Engineering from the University of Oklahoma, where he was a member of Tau Beta Pip 1, Sigma Gamma Epsilon and other honorkry fratsrnities. He was employed by Marathon Oil Company (then the 6hio Oil Company) upon graduation and worked as an engineering trainee, dri]~[ing engineer and production engineer in Kansas and 0t~18,homa. He became District Reservoir Engineering Supervisor in Chickasha, Oklahoma during 1956 and Division R'aservoir Engineering Supervisor in Los Angeles~ California~ during 1960. On January 1, 1968, he ~ssumed the full time duties as Chairman of the Trading Bay Unit Engineering & Planning Group. During the five years, 1963 throu.Eh 1967, Mr. Elliott was a member of the Conservation Committee of California Oil Producers and Chairman of District 3. He' served on the Engineering Board for the Committee during 1965 and Was Chairman during 1966. In 1967, he was elected to the Executive Committee. Mr. E!liott has'been engaged in Unit operations in Oklahoma, California and Alaska involving, at various times, primary recovery, secondary recovery, pressure maintenance, ~ater injection, gas injection and miscible displacement. He has worked since 1960 on engineering aspects of Alaska Fields including the Kenai Gas Field, the S~anson River.Field, the Trading Bay Field and the McArthur River Field. He was a lecturer on miscible displacement for the Society of Petroleum Engineers Refresher Course in Los Angeles, Ventura and Bakersfield, California. He is a registered professional engineer in the State o£ Oklahoma. He is a member of the Society of Petroleum Engineers of AIME and the API Subc~umittee on Reserves and Producing Capacity for Alaska. GEOLOGIC TESTIMONY TO SUPPORT THE APPLICATION FOR APPROVAL OF A PRESSURE MAINTENANCE PRO[EOT HEMLOCK FORMATION-TRADING BAY UNIT-McARTHUR RIVER FIELD AND THE MOTION OF THE OIL AND GAS CONSERVATION COMMITTEE TO ESTABLISH FIELD RULES CONSERVATION FILE NO. 71 PRESENTED BY GRAYDON H. LAUGHBA.UM,IR. , ACTING CHAIRMAN, GEOLOGIC SUBCOMMITEE TRADING BAY UNIT AT A PUBLIC HEARING - FEBRUARY 27, 1969 -ANCHORA. GE~ALASKA GEOLOGIC TESTIMONY I shall present geologic testimony to support our Pressure Maintenance Project application and fi'eld rules within the project area as. shown on Exhibit E. Exhibit E is a most current structure map drawn on the Hemlock Formation, the principal objective in the field. The exhibit is at'a scale of 1" = 2000'. The McA.rthur River Structure, as mapped by information from drilling to date, is a relatively simple, slightly assymetrical anti- cline. The dominant axis of the anticline trends N 10°E' Flank dip varies from 6-8° on the east, and up to 18-20° on the west. Major faulting, the Trading Bay Fault, establisl~es the northwest limit of the structure. Faulting, with displacement and strike unknown, occurs in the southwest part of the structure, in beds above the Hemlock. Other ... horizons in the structure have axial alignment and structural configura- ,.. tions similar to the Hemlock. May I call your attention to Exhibit F, an electric log of the Union Grayling ~i-A well, which illustrates the major producing formation in the field, namely the Hemlock Pool. A.s defined in our application, the vertical limits of the Hemlock Pool corre'late with the interval 9372' to 9897', drilled depth, in the Grayling 81-A. well. The second productive interval in the field, the Grayling Gas Pool, is also illustrated by the Grayling ~i-A log. Vertical limits of.the Grayling Gas Pool correlate with the interval 4126' to 4570', drilled depth, in the Grayling ~:l-Awell.. February 25, 1969 FINAL (Geologic Testimony) Exhibit G, a northwest-southeast structure section which extends from the Arco Middle River No. 2 to the Pan Am North Redoubt State No. 1, includes the Grayling ~l-Awell. The non-marine Tertiary Kenai Group unconformably overlies Jurassic rocks. The basal Kenai, West Foreland Formation, is overlain by the oil-bearing Hemlock Pool. The Hemlock Pool is a clayey to sandy, pebble to boulder conglomerate, interbedded · with pebbly sandstone and minor siltstone. Occasional coal beds occur in the interval. Variations in matrix clay and silts, in part, affect productivity. Porosity and permeability range from good to poor in the Hemlock Pool as it occurs in individual wells. Whole core analysis from the Hemlock in the Union Trading Bay Unit State G-4 ranged from 0.8 to 24'0 millidarceys (horizontal) permeability, and from 2.8% to 20.6% porosity. Average horizontal perfl~eabilitywas 53md., and' porosity 12,7%. Log data indicate that the variable character of the , Hemlock lithology exists throughout the known field area. The beds · overlying the Hemlock Po01 comprize the Middle Kenai Formation to include the Grayling Gas Pool. The top correlation line illustrated on the section represents.the structure near the top of the Grayling Gas Pool. The Grayling Gas Pool is composed of sand interbedded with siltstone, hard tight sandstone, and coal. The sands vary in continuity through the structure due to shaling out and pinch out. February 25, 1969 FINAL (Geologic Testimony) Productive sands in the Grayling Gas Pool are fine to coarse grained, poorly sorted, and loosely consolidated'. Nonetheless, porosity and permeability are good in the sands. Core analysis from the Grayling Gas Pool in the Marathon operated, Trading Bay Unit State D-18 ranged from 74 to 3200 millidarceys permeability, and from 18.5% to 32.5% porosity. Average permeability was1725md., and porosity 28.9%.. Lithology and accumulation data show that the producing intervals in the structure, the Hemlock Pool and Grayling Gas Pool, are dissimilar and should be established, as separate pools by field rules, as pro- posed. It is indicated that the Hemlock Pool, defined in our request for field rules, will favorably respond to pressure maintenance' because of simplicity of structure and gross generally uniform depositional characteriStics. February 25, 1969 FINAL ENGINEERING TESTIMONY TO SUPPORT THE APPLICATION FOR APPROVAL OF A PRESSURE MAINTENANCE PROJECT HEMLOCK FORmaTION-TRADING BAY UNIT-McARTHUR RIVER FIELD AND THE MOTION OF THE OIL AND GAS CONSERVATION COmmITTEE , · TO ESTABLISH FIELD RULES CONSERVATION FILE NO. 71 PRESENTED BY W. H. ELLIOTT, JR., CHAIRMAN - ENGINEERING & PLANNING GROUP TRADING B~YUNIT AT A PUBLIC HEARING - FEBRUARY 27, 1969 - ANCHORAGE, ALASKA' INTRODUCTION . In accordance with the provisions of Section 2226 of the Oil and Gas Conservation Regulations, Union Oil Company of California, as operator for the Trading Bay Unit, has applied for approval of a pressure main- tenance project for the Hemlock formation in the McArthur River Field. On its own motion, the Oil and Gas Conservation Committee has requested additional testimony in order to establish field rules as provided by the Oil and Gas Conservation Regulations. In previous testimony, the Hemlock oil pool and the Grayli.ng gas pool have been described. The location of these pools relative to the projected Sections, Townships and Ranges in the Cook Inlet has been presented as a part of the exhibits. , , The purpose of the engineering testimony is to describe the Hemlock fluid and rock properties, to show why pressure maintenance by water . . injection is expected to recover addi'tional oil and to provide support for various proposed field rules. ., FLUID PROPERTIES The description of the reservoir fluid properties currently in use'were obtained from an analysis of recombined fluid samples recovered from Atlantic RiChfield Company's McArthur state Well No. 1 on drill stem , test No. 3. The well is located in the s0utilweSt quarter of'Sec.' 15, · · · TgN,. R13W,' Fluids from th'e test had been saved and were physically recombined, to a producing, gas-liquid ratio of 250 cubic feet of separator , ga~ at 14.7 psia and 60°F. per barrel 'of separator liquid at 89 psig and 60OF. P. age 1 The "flash" liberation data from the analysis is used. This data was obtained by performing separation tests' on one sample of the recombined fluid and two differential ~epletion samples which had bubble point pres- sures of 1300 psig and 697 psig at 180°F. The average reservoir temper- ature is 180°F. at a subsea depth of 9350 feet, which is the established field datum depth. The separator conditions approximate actual field conditions and the resulting data matches field performance with reason- able accuracy.. Samples from other wells in the field.appear to have similar compositions and properties. Exhibit 'H' illustrates the formation volume factor and the reservoir fluid viscosity as a function of reservoir pressure. It is estimated that the pressure in the reservoir at the time o'f discovery was 4250 psig at a sub- sea depth of 9350 feet. The oil formation volume factor at that pressure was 1.182 reservoir barrels per stock tank barrel. As illustrated, the oil formation volume factor increases to a value of 1.214- at the ~bubble Point pressure of 1787 psig. The~ small increase in the' formation volume factor as the pressure is reduced by 2463 psi~ from the initial pressure to the bubble point pressure indicates that this oil will have a low compressibility. It therefore'will not expand as rapidly as some crude oils as the pressure declines. At the initial pressure, the compressibility' of the Hemlock oil is calculated to be 8.41 x 10-6 vol./vol.-psi. It is estimated that the interstitial water in the Hemlock formation had a compressibility of 3.5 x 10-6 vol./vol.-psi at initial reservoir pressure. Page '2 - Exhibit 'I' illustrates the change in'the solution gas-oil ratio as the reservoir pressure declines below~the bubble point pressure. Above the bubble point pressure, the solution gas-oil ratio remains constant at 312 standard cubic feet of gas dissolved in the oil per barrel of stock ~ank oil. This low solution gas-oil ratio above the bubble point provides the explanation for the low compressibility of the oil in the Hemlock pool. Exhibit 'J' illustrates the variation of the gas formation volume factor and the gas viscosity below the bubble point for free gas in the reservoir. Although it is expected that the reservoir pressure will not be permitted to decline below the bubble point, the fluid data must be available for comparative studies. ROCK PROPERTIES Sand Thickness -. Exhibit 'K' is a correlation section which illustrates the well bore thick- ... ness of the Hemlock formation as it occurs in Union-Grayling Well 1-A and the Trading Bay Unit Wells.G-7', G-6 and G-14. In geqeral, the well bore thickness, as illhstrated, corrects to a vertical thickness of approximately 500 feet. The vertical net thickness varies from approximately 310 feet to approximately 450 feet, after, eliminating the intervals which are not expected to produce either oil or water. The vertical net oil productive thickness varies from ze~o to approximately 450 feet as the distance varies between the top of the formation 'and the estimated oil-water contact' Oil-Water Contact Primary development drilling has not yet been completed in all areas of this field, particularly in the area to the south which is being developed from the Dolly Varden platform. Therefore, it has not as yet been possible to Page 3 define a horizont . free-water surface in the · pool. Based upon the analyses of the logs from 19 wells which encountered both oil and water in the Hemlock pool, the oil-water contact has been estimated to be at various sub'sea depths ranging from 9752 feet to 9940 feet. For · engineering estimates, it has been assumed that a free-water surface exists at a subsea depth of 9850 feet. Porosity The average porosity in the Hemlock formation is estimated to be 10.5%. This value represents the average of the values calculated on 29 wells from sonic logs, multiplied by an overburden correction factor of 0.95. The overburden correction factor was derived from measurements of porosity on several samples at 2500 psig frame pressure~ which were compared to porosities calculated from sonic logs over the same intervals. Water Saturation The average water saturation in the oil productive portion of the Hemlock formation is estimated to be 35% This value is based upon the arithmetic average of the water saturations computed in 30 wells. Permeability The evidence now available indicates that the average~absolute permeability of the productive interval in the wells~varies from a low of approximately 20 md. in wells low on structure to a high of approximately 135 md. in wells high on structure. In order to obtain these esti~nates of absolute permeability in the Hemlock formati0n, calculated effective oil permeabilities from numerous pressure surveys throughout the field have been converted to absolute permeabilities utilizing a relative oil permeability of 0.6. Page 4 Oil and Water RelativePermeabilities Exhibit 'L' illustrates the oil and water relative permeability curves which have been selected to .represent the average conditions in the Hemlock pool. These curves were selected after examining the labora- tory data on 23 core samples from three wells. As illustrated by the curves, the average effective oil permeability at the average interstitial water saturation of 35~ is expected to be six- tenths of the absolute permeability and the re'sidual oil saturation is expected to average 25~ of the effective pore space. At the residual oil saturation, the effective permeability to water is expected to be two-tenths of the absolute permeability. Pore Volume Compressibility Measurements of pore volume compressibility were made on several core samples' from two wells. From these data~ the average pore vOlume compres- sibility for the Hemlock' pool is 4 x i0-6 vol./voloV-psi. METHOD OF ESTIMATING ~ERFORMANCE Estimates of the future performance of %he Hemlock reservoir have been and are being made by the Trading Bay Unit Engineering & Planning Group utilizing sophisticated computer techniques. The engineering effort is divided into two ma~or psrts~ a history match and a performance prediction. In making a history match~ a mathematical model of the reservoir is pre- .. pared which ihcludes ali. of'the fluid and rock properties'. When the mathematical model has been digitized, the measured producing rates are digitized and input to the compu{ero With this information~ reservoir Page 5 pressures are compuved and are subsequently compare~ with pressures actually measured in the wells. If the coraputed and measured pressures. do not adequately match, then reasonable changes are made in the mathe- matical model of the reservoir until an adequate pressure match is obtained in each of the wells. With this improved model of the reservoir, more reliable estimates of future performance can be made. To estimate future performance, individual well producing and injecting rates are computed using the various'physical parameters which are in- volved 'and which change from well to well and in time. Some of these parameters are reserVoir pressure, either productivity or injectivity index, drilled depth, vertical depth, tubing .size, flowing or artificial lift conditions. Polynomial equations are used iff the computer to include these variables. The prime conclusion derived from the computer studies is that a pres- sure maintenance progr~n is needed to maximize the oil to be recovered ~rom the Hemlock ~eservoir. . SUMMARY The Trading Bay ~Unit 'Par%icipants organized the Engineering & Planning . Group which has functioned continuously since the Unit was formed. This · Group is charged with the responsibility to maximize oil recovery utilizing the latest technology. The studies performed by this Group have established the .following: 1. Oil producing rates will decline rapidly as drilling is completed unless the reservoir pressure is maintained at or restored to an adequate level above the bubble point. ,, Page 6 2. Ultimate recovery by pressure depletion is expected to be 18% of the initial stock tank oil in place. 3. It is predicted that a minimum response to pressure maintenance by water injection will be an oil producing rate of 90~000 BOPD attained during 1969 and maintained in the range of 80,000 B~PD to 90,000 BOPD during the next five to six years with an ultimate recovery of approximately 35% of the initial stock tank oil in place. This minimum response would essentially double the ultimate realization to the State of Alaska from the Hemlock pool. The maximum response predicted is an oil producing rate of approxi- mately 120,000 BOPD in two years with an ultimate recovery of approximately 45% of the initial stock ~tank oil in place. The future life of the field is projected to be 25 years. 4. Additional producing wells may be needed in limited portions of the field. Continuing studies' will determine the number and location of such wells required to maximize the oil recovery, from this pressure maintenance project 5. Field total water injection should be approximately 200,000 BWPD. Based upon an 'injection test in Well K-6, the averag~ injection rate per well will be in the range of 10,000 BWPD to 15,000 BWPD. Therefore 15 to 20 water injection wells will be required. 6. The ultimate recovery of oil and the near term producing rates will be greater with peripheral water injection than it would be with pattern water injection. 7. To recover the maximum amount of oil, to prevent econ, omic waste, and to protect correlative rights the followi.ng goals should be met' .(a) Begin fluid injection as soon as possible. (b) Continue primary development drilling to adequately define the productive limits of the Hemlock pool. ~age 7 (¢) Monitor closely individual well injection and production rates and project performance. (d) Continue studie~ of reservoir performance to determine the need to vary the well spacing in some areas~ to drill additional producing or injecting wells, or to convert wells. (e) Establish field rules which will allow administrative approval~ by the Conservation Committee~ of the Operator's requests for operational changes required for the pressure maintenance project. ?age 8 Closing Statement - Anderson Mr. Chairman, with your permission I would like to make a brief closing statement. The participants, Trading Bay Unit, have presented testimony here today in support of a program of pressure maintenance and field rules necessary to implement this program. This testimony is the culmin- ation of extensive engineering and geological study of the Hemlock Pool · . using the most sophisticated techniques available. The studies were con- ducted by technical experts of eight (8) major oil companies working toward a common goal - to maximize the ultimate recovery of hydrocarbons from the Unit area. ~ Two years from the day the Trading Bay Unit was approved by the Commissioner ,. of Natural Resources, 20 months from the setting of the first Unit platform, 16 months after the completion of the first producing Unit well and the production of 25,000,000 barrels of oil, the Unit Participants are prepared to commence an extensive pressure maintenance project. A project which our testimony indicates with minimum response Will approximately double the ultimate realization to the State of Alaska from the Hemlock Pool. As this project progresses it may be necessary to vary well spacing within pOrtions of the field, convert injection or production wells, alter the type or method of fluid injection, or expand the project to other pools which may be established within the field. Page 2 Closing Statement We believe the Alaska Statutes and the 011 and Gas Conservation Regulations were designed to give your Committee the authority to 'grant an Operator the flexibility required to develop each field according to the best geological and engineering data available. We have, we · believe, presented to you sound geological and engineering data to prove it is imperative the proposed pressure maintenance 'project and implementing rield rules be approved as soon as possible to assure maximum efficient development and to prevent waste of our natural re source. Thank you for your Consideration. ~elephons 907 279 1411 Gordo~ Davis Dislricl Le, ndman February ., Mr. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee '3001 Porcupine Drive Anchorage, Alaska 99504 Re: File: AMR-315-986.511 Application for PressUre Maintenance Pro~iect for McArthur River Field Trading Bay Unit Dear Mr. Marshall: Atlantic Richfield Company, as the owner of a leasehold interest in the McArthur River Field, hereby waives further notice of the hearing on Conservation File No. 71. We also request that Union Oil's request for approval of a pressure maintenance project for the Field and the Committee's motion to establish appropriate Field rules be granted at the hearing on February 2~, 1969. Sincerely, 6ordon Davis Bi'strict Landman · 6D:bjs cc: Robert T. Anderson Union Oil Company of California 2805 Denali Street 'Anchorage, Alaska 99503 Trading Bay Unit Management Committee (See attached list) · · TRADIN'G BAY UN IT MANAGEMENT COMMITTEE Mr. H. C. Jamison Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Mr. B. L. Waiters Marathon Oil Company 550 South Flower Street Los Angeles, California 90017 Mr. A. E. Piper Pan American Petroleum Corp. Security Life Building Denver, Colorado 80202 Mr. R..M. Archa'mbeault Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr. W. A. Walther Sinclair Oil Corporation 501.Lincoln Tower Building Denver, Colorado 80203 Mr~ J. R. Teel Skelly Oil Company P. O. Box 1650 TulSa, Oklahoma 74102 Mr. C. V. Chatterton Standard 0il Company of California P. O. Box 7-839 Anchorage, Alaska 99501 Mr. W. C. Barton, Jr. Union Oil Company of California P. O. Box 7600 Los Angeles, California 90054 P. o. BOX I~S0 PRODUCTION DEPARTMENT TULSA, O][~LAHOMA 74102 C. L. BLACKSHER, VICE PRESIDENT W. P. WHITMORE, MGR. ;:'ROOUCT,ON February 5 ]969 GEORGE W. SELINGER, MGR. CONSERVATION D. E. SMITH, MGR. TECHNICAL SERVICES J. R. TEEL, MGR. JOINT OPERATIONS Conservation File Nco 71 McArthu_~ Y. iver Field Tho~3~s ]Io Narsl~%l;' Jr. Executive Se..gretary Alaska Oi]/~nd Gas Constipation Co~mitte~ 3OC1 ~o~uo:~.ue Drive An¢~J~*age,' Alask~ . 9950/~, This is to advise t}~t as an affected par'rye we ~,~%ive compliance ~.th the AdministratiVe Procedtn*es Act in the notice and conduct of the hearing on the appl~.catzon of U~mion Oil Coml~. ny of California for approval of a pressure ~aintenance project and, if necessa~..'y~ the establish.~.ent of field rulos~ truly yours~ Union Oil Company of California 2805 Den~li Street Anchorage, Alas]~a 99503 .Attention: ~.~r. Robert T. Anderson Union Oil Compan.v ' C¢:lifornia ,4' . 2805 Dena!i Street!' ~chorage, Alaska 99503 Telepho'ne (907) 277-1481 % ' February ?, 1969 MANAGEMENT COMMITTEE TRADING BAY UNIT (Mailing List Attached)' Gentlemen: Re:, TRADING BAY UNIT STATE OF ALASKA ,. Pressure Maintenance Project ',for McArthur River Field ,Waiver of Noncompliance ., , ,. Pursuant to Legal Notice No. 1606 publiShed January 27, 1969 and forwarded to you January 30, 1969, the State of Alaska,Oil and Gas Conservation Com- mittee on February 27, 1969 will hear testimony on the matters r&lating to the McArthur River Field set forth in said Notice. Please..indicate your Waiver of any noncompliance with Chapter 62, Title 44 of the Alaska Statutes in the notice and conduct of th'6 hearing by signing in the space provided on the at- tached copy of this letter and returning same to this office within fifteen days. Yours very truly', UNION OIL COMPAN-Y OF CALIFORN~ Operator RTA/nr Noncompliance waived 'this FEBRUARY 19 6 9o ZSTH day of rn Regid~ Prod. Mgr. ,· 2805 Denali Stre,-' Anchorage, Alaska 99503 Telephone (907){ 1-1481 . Robert T. Anderson District Land Manager .¥ebrhary 7, 1969 Texaco Inc. 3350 M/ilshire Blvd. Los Angeles, California 90005 Attention' J. P. Reynolds Gentlemen: The Superior Oil Company p. O. Box 1521 Houston, Texas 77001 Attention: J. H. Cox ! · Re: TRADING BAY UNIT · STATE OF AI_ASKA Pressure Maintenance Project for McArthur River Field . Wsiver of Noncompliance .. . · RTA/nr · ' · .Noncompliance waived this //.~/_~ .day of · Form 401 ANC-A (New 7/67)~'' .. · .. Yours very truly, · "'- Robe~rt T¥ Afiaerson 969. Pursuant to Legal Notice No. 1606 publish6d January 27, 1969, copy. of notice fs attached,' the State of Alaska, Oil and Gas Conservation Committee on Feb. 27, .1969 will'hear testimony on the matters relating t6 the McArthur River Field proposed Pressure Maintenance Program, application filed with the State on January 10, 1969 is also enclosed. , · · Please'indicate your Waiver of any noncompliance with Chapter 62, Title 44, of 'the Alaska Statutes in the notice and conduct of the hearing by signing in the space provided on the attached copy of this letter ~nd returning same to this office within fifteen days. - Robert T. Anderson District Land Mana§er t FEB 19 2805' Denali Stre'-' Anchorage, Alaska 99503 Telephone (907(¥' /'-1481 Gentlemen: Texaco Inc. 3350 Wilshire Blvd. Los Angeles, California 90005 Attention: I. P. Reynolds 'The Superior Oil Company P. O. Box 152i Ho(~ston, Texas 77001 -. Attention: I. H. Cox .. Re: TRADING BAY UNIT , " STATE OF AIJ~SKA ~ . · Pressure Maintenance Project for McArthur River Field Waiver of Noncompliance · . Pursuant to Legal'Notice No. 1606 published January 27, 1969, copy of notice is attached,' the State of Alaska, Oil and Gas Conservation Committee on Feb. 7, !969. will ·hear tes[imony on the matters relating to tNe McArthdr River Field · propOsed Pressure Maintenance Program, application filed with the State on January 10, 1969 is also enclosed.. , " ... .. · Please'indicate your Waiver of any nonc(~mpliance With' Chapter 62, Title 44, of the Alaska Statutes in the notice and conduct of the hearing'by signing in the · space Provided on the attached copy of this letter and returning same to this office within fifteen'days. - .. .. · · · ". Yours very truly, ~' Rdbe-rt T'.' Afiderso''"' n / RTA/nr Noncompliance waived this .- ,, !3th day.of February 1969. . TEXACO ,'[no, ...... Company Form 401 AN¢-A(New ?/$?) Its Attorney in Fact Union Oil Company -~ California 2805 Denali Stree{ '~chorage, Alaska 99503 Telephone (907) 2'z,-1481 · February 7, 1969 W. S. IVY,. lOC. Fi8 17 ,~o9 MANAGEMENT COMMITTEE TRADING' BAY UNIT (Mailing List Attache.d) Gentlemen' -- Re:. TRADING BAY UNIT STATE OF ALASKA PreSsure Maintenance Project 'for McArthur River Field Waiver of Noncompliance Pursuant to Legal Notice No. 1606 published January 27, 1969 and forwarded to you January 30, 1969, the State of Alaska,Oil and Gas Conservation Com- mittee on February 27, 1969 will hear testimony on the matters relating to the McArthur River Field set forth in said Notice. Please indicate your Waiver of any noncompliance with Chapter 62, Title 44 of the Alaska Statutes in the notice and conduct of the hearing by signing in the space provided on the at- tached copy of this letter and returning same to this office within fifteen days. Yours very truly', RTA/nr Noncompliance waived this.,,.//~'" 21~.~"- /~.~.,/ . .< y<. ..~ 1969. UNION OIL COMPANY OF CALIFORNIA Operator day of ATLANTIC RICHFIELD COMPANY Company/-----~' · ' .C ...... ....... .. .... -,, ...... - i' -- ...-'" )"~:.' ' .~-.d?-.--'1, :./ ! f / ........ '~' FORM 401-ANC (REV. 8/67) Union Oil Company nf California · 2805 Denali Street[- ~chorage, Alaska 99503 Telephone (907) 277-1481 ],O.i.-,i2k'.i' !,, '. .',~ ' February 7, 1969 ~'¥. S. tv~. MANAGEMENT COMMITTEE TRADING' BAY UNIT (Mailing List Attached) Gentlemen: TRADING BAY UNIT STATE OF ALASKA PreSsure Maintenance Project ',for McArthur River Field :.Waiver of Noncompliance Pursuant to Legal Notice No. 1606 published January 27, 1969 and forwarded to you January 30, 1969, the State of Alaska,Oil and Gas Conservation Com- mittee on February 27, 1969 will hear testimony on the matters relating to the McArthur River Field set forth in said Notice. Please indicate your Waiver of any noncompliance with Chapter 62, Title 44 of the Alaska Statutes in the notice and conduct of the hearing by signing in the space provided on the at- tached copy of this letter and returning same to this office within fifteen days. Yours very truly~, UNION OIL COMPANY OF CALIFORNIA Operator .. ~,~/./Fff~, ~-<:,.,~...¢~. ,q ,-/~(-~_..r~ :~':~'~~''~' ' ,.. , . RTA/nr Noncompliance waived this 14th day of February. 1969. STANDARD OIL CO. OF CALIFORItIA: .W.O.I. i?mpany ,... FORM 401-ANC (REV. 8~67) C. V. CHATTERTON Union Oil company '-'f California 2805 Denali Street( .Ichorage, Alaska 99503 Telephone (907) 277-1481 · February ?, 1969 MANAGEMENT COMMITTEE TRADING BAY UNIT (Mailing List Attached) Gentlemen: TRADING BAY UNIT STATE OF ALASKA Pressure Maintenance Project for McArthur River Field Waiver of Noncompliance PursUant to Legal Notice No. 1606 published January 27, 1969 and forwarded to you January 30, 1969, the State of Alaska,Oil and Gas Conservation Com- mittee on February 27, 1969 will hear testimony on the matters relating to the McArthur River Field set forth in said Notice. Please .indicate your Waiver of any noncompliance with Chapter 62, Title 44 of the Alaska Statutes in the notice and conduct of the hearing by signing in the space provided on the at- tached copy of this letter and returning same to this office within fifteen days. Yours very trulY', · · UNION OIL COMPANY OF CALiFORNiA Operator RTA/nr Noncompliance waived this 17th day of February, 19 6 9. By: FORM 401-ANC (REV. 8/67) Marathon Oil Company Company. B. L. Walters, Jr. SECURITY LIFE BUILDING DENVER~ COLORADO 80202 . February 6 1969 File: AMR~315=986o511 Re~ Application for Pressure MainTenance Project for .. McArthur River Field W. S. l¥i. Mro Thomas Ro Marshall, Jro Executive Secretary . Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska @9504 Dean Mro Marshall~ · Pan Amerlcan~ on. behalf of the Chakachatna Group~ all of whom own a lease- hold interest in McArthur River Field and are, therefore, affected parties~ waives further notice of the hearing on. Conservation File No° 71, and asks that Union Oil's request for approval of a pressure maintenance project for this Field and the Committee's motion to establish appropriate Field rules be granted at the hearing on February 27, 1969o Yours very truly, cc: Robert To Anderson Union Oil Company of California 28'05 Denali Street Anchorage, Alaska 99503 Trading Bay Unit ,. Management Committee (See attached List) TRADING BAY UNIT · 'MANAGEMENT COMMITTEE Mr. Ho Co Jamtson Atlantic Richfield Company Po Oo Box 360 Anchorage, Alaska '99501 Mr. B. Lo Walters Marath°n Oil Company 550 South Flower Street Los Angeles, California 90017 Mr. ~R° M. Archambeault Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Mr, W. Ao Walther Sinclair Oil Co~poration 501 Lincoln Tower Building Denver, Colorado 80203 Mr° J. Ro Teel Skelly Oil Company P. O° Box 1650 Tulsa, 0klahoma 7q102 Mr, C0 V o Chatterton ,8~andard Oil Company of California Po,O,o Box 7-839 ,, Anchorage, Alaska 99501 Mr. W0 C. Barton, Jr. Union Oil Company of California p? 0., Box 7600 Los Angeles, California 9005~ ,. PAN AMERICAN STATEMENT R. B. Giles, representing Pan American Petroleum Corporation Pan American owns an equal undivided-interest with Skelly, Sinclair and Phillips in Lease ADL 17579. Our individual interest in the Unit production is quite small. Each of the four companies has a present equity interest of approximately 1.9%. Our share of the pool is so small that, in the absence of a Unit operation, it is doubtful whether our properties could ever have been developed economically. The Unit has operated to give us our fair share of the production from the Hemlock Pool. It has achieved orderly and efficient development. It has permitted pressure ntafntenance to be undertaken at the earliest possible stage in the life of the field, even before equities have been completely defined which we believe is unique. Doing this will assure maximum ultimate oil recovery from the reservoir.. We agree with the · proposals of the Unit Operator, and we are satisfied that the operations ,, conducted under the U'nit Agreement and Unit Operating Agreement, and under the supervision of the Alaska Oil and Gas Conservation Committee, will give every operator its just and equitable share of the total amount of oil recovered from the Hemlock Pool, and will at the same time make it possible for the pool to produce the maxirnum amount ,of oil which can economically be produced from it. However, we feel that to fully protect the correlative rights of all parties certain things need to be accomplished. After the completion of wells currently drilling and planned from the Dolly Varden Platform which Page includes the completion of a well in the NW-~ of Section 17, T8N., R13W., S. M. the 4th well contained in Unit Operator's Third Plan. of Development and .Operation filed on February 25, 1969, and if that well reasonably confirms the present structural picture, then a well should be drilled so as to penetrate all pay zones in the Hemlock pool within the SE¼ of Section 17, T8N., R13W., S.M. for the purpose of further defining the productive limits of the Hemlock pool. With this amplification, we support the application of Union Oil Company. Published in the Anchorage Daily News January 27, 1969 I~IOTICE OF PUBLIC STATE OF ALASKA '. DEPARTMENT OF RESOURCES DIVISION OF OIL AND Alaska Oil and Gas Committee ' Conservation File No. 71 i~: The application of ;/)mpany of California for ~f'""'a pressure maintenance o~ the McArthur River Field ~ie'mo~ion of, the Oil and ;~nservation Committee to e~ ~11 field 'rUles for the developr, [Q~jthe 'pool or' pools within the ~ur River Field.' ' , Notice:is hereby ,given' that /Iii ~'Com'Pany of 'California 'has' l~a~nten~nC'e . project '.for the li~t,~hu~' .River Field In accor¢.~ ].W~h' the' provisions of' Section ~.'the. Oil and 'Gas l~eguiations; In'u ~:0Wh mci;°n ' ,ll~h' field rules as ,,~,,,, and 'Gas, Conservatisn. s,, will hear, 'testimony ,on i!iowing matters relating, 'to ~Arthur River Field: ." "~.' The' 'referenced 'application' & pressure maintenance ~ ~; ProvisiO~ for administrative t~r0val of ,,jmxPansion( and, cOntracti~' 0£,: the Project, conversion of wel~s ~d the'drilling of'additional an~. any ot~er" matter reasonabi~ necessary to. carry out the purposiil O'q the project; ' I: Estab~s~ent oI area to .b.'~ covered.' by field rules; 4. Establishment o£ a pool o~,! ~0Ols; · , , ",J~, "~d0ption of rules go'vernin ' casing and cementing practices; ~. Adoption o£ rules governini reservoir pressure surveys; , ] 7. AdOption o£ ruies',governini [,well spacing~ . ' ' , , ,,' I. 18. Any other matters relevant Iii/® development and .operation [t~e'"ipOol' or pools.. ' ' ~'' [' ~A' 'hearing on said matters will; .{h~ld,in the. City Council Chambt ['AVenue' and "F" Street, Anchorag~e., ].~I/~ka,'..at 9:30 a.m.,. ' FebruarY 27, :I~'9611~ at:'whlch:time the testimo~[ [o~ 'the. applicant and o£ affected andl 'lint&;ested parties Will be heard. I' this hearing, all 'a£fectetl[ '~[nOt/~ompliance. with. Chapter', 62,/ ]'Al~ka Statutes (Administrative Pro';[ .[cedh~,es Act)' in the notice and [dUCt of the hearing. Failure of any] [~ted party to so waive will r~ ,i'ri~:'/~ ihe hearing being co'ntint/~kl [to, ato,, later date' and conducted Ih' .[,aee01~dance with, the Administrative [,~--'-~'roc~dures Act., . ' :[i, ' J' THOMAS R. MARSHALL, "Executive Secretary .'~Alaska Oil and Gas , ' '',Conserv. atton Committee = ~001 ,Porcupine Drive ,, ,!Anchorage, Alaska 99504 ,, Pu~il~h January 27, 1969, , Legal, Notice. No. 1606 A F F AVIT STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, )ss. ~vIary Z Shake being first duly sworn on oath de- poses and says that ..... She ................ is the.. Legal ~7otice of the Anchorage News, a dally newspaper, That said newspaper has been ap- proved as a legal newspaper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publieation of said newspaper. That the annexed is a true copy of a ......Lega.1...N.o, tice as it was published in regular issues (and not in supplemental form) of said newspaper for a period of .......... ..... One ......... ......................... insertions,, commencing on the ........ ~.~. .......... day °f'"'Ja'nua'~'M ................ 19.69, and ending on the ....... 27, ................. day of January ................................ 19...d9 .... both dates inclusive, and that such newspaper was regularly distributed to its subscribers during all of said period, That the full amount of the fee charged for the foregoing pub- lieation is the sum of $ 22 o 50 which amount has been paid in full at the rate of 25c per line; Minimum charge $7,50. ' Subscribed this .... .2...7..day of ...... .J....a..~...u.,~.,/'.~. .......... /. ,~ :.-,_.,: ,, .~..~.... THE STATE O~ ANCHORAGE, ALASKA M~OMMisSION ~XPIR~S 1606 t OF PUBLii,, TION , DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil m~d Gas Conservation Committee Conservation File No. 71 Re: The application ~ Union Oil Company of California for approval of a pressure maintenance, project for the MeArthur River Field an~ tl~e motio~ of the 0~1 ~nd Gas Conse~'aUon Committee to -lish field rules for the developmcn( ~of the pool or pools wlth~ the Mc~ Arthur River Field. .] Notice is hereby given that Union' ~011 Company of California has ap ;}plied for approval of a pressure' i maintenance project for the ]Arthur River Field In accordance 1with the provisions of Section 2226 lei the Oil and Gas Conservation ~Regulatlons. In addition U~e Oil and 'Gas Conservation Committee, on its own motion and in order to estab- Itsh' fief4 rules as provided by the Oil and Gas Conservation Regula- tions, wi~ hear testimony on the follow~g matters relating to the McArthur Rlve~ Field: ' 1. The referenced application 'ior~ a pressure maintenance pro, eot; 2. Provtslen for administrative ap- pro,al of expansion~ and contraction of the project, conversion of wells :and the drilling of additional wells~ and any other matter reasonably .necessary to carry out the purposes o[ the project; ~. Establishment of area to be ..covered.' by field rules; 4. Establishment ot ~ p~ol . pools; ; ~. Adoption o[ ~les governing easing and cementing practices; ~.' Adoption o[ rules' govern~g; reservoir pressure su~eys; . ~. 'Adoption o~ rules .governing well spacing; . 8. Any other matters' relevant to. the development and operation of' the pool or pools. A hear~g on said matters will be held in the City Council Chambers' of the Z. J. Loussae Library, Fifth Avenue and "F' Street, Anchorage, Alaska, at 9:30 a.m., February ~7, 1969, at which time ihe testimony of the applicant and of affected and ~terested parties will be ~eard. ~ At this hearing ~ll affected .;parties will be asked to wai'ie.~y noncompliance with . Chapter Alaska Statutes (A~i~lstrative Pro, 'cedures Act) tn the notice and con- duet of the hearing. Fatlure of any. affected party to so waive will re- 'sult In the hearing being continued .to a later date and conducted In accordance with the Administrative Procedures Act. THOMAS R. MA~HALL, JR.} Executive Secretary Alaska Oil and Gas Conse~.ation Committe~ .. 3~1 Porcup~e Drive Anchorage, Alaska 99~4 Publish Ja~ua~ 27. 1~9 ~gal NoMce No. I~6 . . .. ~.. -.. DIVISION Of OIL AND GAS NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oil and Gas Conservation Committee Conservation File No. 71 Re: The application of Union Oil Company of California for approval of a pressure maintenance project for the McArthur River Field and the motion of the Oil and Gas Conservation Committee to establish field rules for the development of the pool or pools within the McArthur River Field. Notice is hereby given that Union Oil Company of California has applied for approval of a pressure maintenance project for the McArthur River Field in accordance with the provisions of Section 2226 of the Oil and Gas Conser- vation Regulations. In addition the Oil and Gas Conservation Committee, on its own motion and in order to establish field rules as provided by the Oil and Gas Conservation Regulations, will hear testimony on the following matters relating to the McArthur River Field: 3~ 4. 5. 6. The referenced application for a pressure maintenance project; Provisi~on for administrative approval of expansion and contraction of the project, conversion of wells and the drilling of additional wells, and any other matter reasonably necessary to carry out the purposes of the project; Establishment of area to be covered by field ruleS; Es tablishment of a pool or pools; Adoption of rules governing casing and cementing practices; Adoption of rules governing reservoir pressure su,rveys; Conservation File No. 71 Page 2 e Adoption of rules governing well spacing; Any other matters relevant to the development and operation of the pool or pools. A hearing on said matters will be held in the City Council Chambers of the Z. J. Loussac Library, Fifth Avenue and "F" Street, Anchorage, Alaska, at 9:30 a.m., February 27, 1969, at which time the testimony of the appli- cant and of affected and interested parties will be heard. At this hearing all affected parties will be asked to waive any noncompliance with Chapter 62 Alaska~ Statutes ~(Administrative Procedures Act} in the notice and conduct of the hearing. Failure of any affected party to so waive will result in the hearing being continued to a later date and conducted in accordance with the Administrative Procedures Act. :ib:/ ..,":.~.,:~,:~ :.~:'::' "' ~~ h'""/~ ~~I~':,' Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, A1 aska 99504 Publish January 27, 1969 Robert T. Anderson District Land Manager Union Oil Compan~f California ! 2805 Denali Stree~,nchorage, Alaska 99503 Telephone (907) 277-1481 unlen January 15, 1969 RECEIVED JAN 1 I0 O DIVISION OF OIL AND GAS ANCH~i~GE Alaska Oil and Gas Conservation Committee Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska 99504 Re: WEST FORELAND AREA STATE OF ALASKA Proposed Pres sure Maintenance Program McArthur River Field, Trading Bay Unit Agreement Gentlemen: Please be advised that the subject Pressure Maintenance Program was submitted to the following Working Interest Owners, Trading Bay Unit, on December 24, 1968, for their approval: Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Sinclair Oil & Gas Company 5 01 Lincoln Tower Building Denver, Colorado 80203 Marathon Oil Company 5 5 0 South Flower Street Los Angeles, California 90017 Skelly Oil Company P. O. Box 1650 Tulsa, Oklahoma 74102 Pan American Petroleum Corp. Security Life Building Denver, Colorado 80202 Standard Oil Company of California P. O. Box 7-839 Anchorage, Alaska Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Union Oil Company of California P. O. Box 7600 Los Angeles, California 90054 Yours very truly, RTA/nr Form 401 ANC-A (New 7/67) Union OiICompany~i -;alifornia 2805 Denali Street, Anchorage, Alaska 99503 Telephone (907) 277-1481 January 10, 1969 union klaska Oil and Gas Conservation Committee Division of Oil and Gas 3001 Porcupine Drive Anchorage, Alaska 99504 WEST FORELAND AREA State of Alaska Proposed Pressure Maintenance Program McArthur River Field, Trading Bay Unit Agreement Gentlemen: In accordance with the provisions of Section 2226 of the Oil and Gas Conservation Regulations, Union Oil Company of California, as Trading Bay Unit Operator, requests approval of the pressure maintenance program for the McArthur River Field hereinafter set forth. The results of injectivity tests and reservoir performance studies of the Hemlock formation utilizing a mathematical model and a high speed digital computer all indicate that pressure can be maintained and that oil recovery will be substantially increased by water injection. The attached Exhibit "A" is a plat of the Trading Bay Unit showing the area for which the project is proposed and the locations of producing oil wells, proposed injection wells and proposed oil wells. Present plans include 19 injection wells around the periphery of the reservoir and 45 producing wells. If the need arises or if results of continuing computer studies dictate, a five or nine spot pattern may be utilized. All presently producing oil wells within the field are completed in the Hemlock formation. Said formation is a non-marine, conglomeratic sandstone of Tertiary age, the top of which that will be affected by the herein proposed project lies at depths varying from 9,000' to 9,865' subsea. Exhibit"B" is a Dual Induction Latero!og of Unit well K-6 (32-16) in which injectivity tests have been conducted. The casing record of said well is attached as Exhibit "C" and is essentially the same as that which will be used for all injection wells subject to variations required by depth differences in particular wells. Each injection well will be equipped with a packer above the injection perforations which will accommodate the tubing through which water will be pumped from the surface to the injection perforations. The production casing above the injection packer will be pressure tested with treated water to 2,000 psig before final installation of the injection tubing. FORM 401-ANC (REV. 8/67) RECEIVED JAN 1 1969 DIVh~ION OF OIL AND ANCIKNIAGE Alaska Oil and Gas Conservation Committee Page two January 10, 1969 Injection of treated Cook Inlet water will commence during the first quarter of 1969 in from 6 to 9 injection wells. Injection rates will be based on reservoir requirements and ability of wells to take water and are expected to range from 10,000 to 15,000 bwpd at approximately 2,000 psig surface pressure. By the end of 1969 it is anticipated that water will be injected into approximately 19 wells, as shown on Exhibit "A", at a total rate of approximately 200,000 bwpd. The Monthly Well Production Report for November 1968 is attached as Exhibit "D" and shows the gas-oil ratio and oil and water production rates from each well in the McArthur River Field. Union Oil Company of California, as Unit Operator, through the sub-operators listed below will conduct the pressure maintenance program proposed herein: Sub-operator Platform Union Oil Company of California 2805 Denali Street Anchorage, Alaska 99503 Grayling Marathon Oil Company P. O. Box 2380 Anchorage, Alaska 99501 Dolly Varden Atlantic Richfield Company P. 0. Box 360 Anchorage, Alaska 99501 King Salmon There are no operators offsetting the project area that may be affected by said project other than the participants herein, all of whom have approved the proposed pressure maintenance program. It is therefore respectfull'y requested that you approve this project without the necessity of holding a hearing. Very truly yours, UNION OIL COMPANY OF CALIFORNIA Operator By ~ttorney~ln-Fact RECEIVED ~l¥1tlON OF; OIL ~ND PI~OPOSF, I) FIELD Mc.h~-,.qliUI4 I,IL],I, .FIF,'[,I') TI'UU)IN ('-5 BAY U N Rule 1. Area where Field Rules are ap_p_licable The area described as follows will be affected by these rules' Township 8 North, Range 13 West, Seward Meridian All of Sections 4 through 8 inclusive 1 Section 9- W-~', Section 16' W-~- All of Sections 17 through 20 inclusive 1 Secti'on 29' NW:~- Section 30:'. NE-~- Township 8 North, Ran.q..e 14 West, Seward Meridian .. Section 1 · All. Sect[on 12" .. E½, NW¼ · Townsh~ 9 North', Range 13 West, Seward Meridian Section 9- S~' Section 14' SW-~' All of Sections 15 through 17 inclusive Section 18' S · ' Ali. of Secti'ons 19 t]~roUgh 22 inclusive Section 23' Section 26. W'~' All of Sections 27 through 34 in~,lusive Sec:tion 35' NW;~' Township 9 North, Range 1.4 West, seward Meridian Section 24.: .g~; Section 25' t Section 36'. .NE~- for such acljustra(':nt. At'such time of flC]jtlstrllOlltt tile [IFO[I f;]l~l]l FIOt OXCCOd the Trading Bay Unit ~ea. Page Ru].e 2. Definition of pools. '(a) The t]emlock Pool is defined a.?: tlie irlterw~ls which correlate witht]:c interval 9372' to 9897', in the Grayling -Ill h we.l]. v.'hiclt correlate with tile interval ,1126' to 4570' in the Union Grayling ~iA well. Other pools may be established by administrative approval of the Committee on request of the Unit Operator upon demonstrating justification for the establishment of .such other pools. . . B..¥_Le_ .8_._s.'. p_ The spacing pattern for each pool, inc.h.~din, g well density and distance between Wells may be altered from that specified under the Conservation Regulations b.Y administrative approval of 'the Committee on request by th.e Unit Operator ., upon demonstrating justification for the requested spacing pattern. Rule 4. Casing and cementing practices. . (a) Surface casing will be landed at approximately 2000 feet to prot. ect known fresh water aquifers and it will be cemented with a suffiCien,t 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 tota], depth and cemented with a sufficient vo].ume to place cement above known product'ive sand intervals. 1. he. use of:' rnu].l:i-stage cementing procedures will be pc, rrnitt'ed. Alternatively, Page a casing string may be run and will bo adequately cemented at an intermediate point and a liner landed at total' depth and cemented, sufficient volumes of cement being used to pi. ace cement above known cement will be used to fill the annul, ar space behind the .liner to 100 feet above the casing shoe, or the top of the liner shall be squeezed with guffici, ent cement to provide 10© feet' of cement between the ].iner and casing annulus. Casing and well head equipment will be hydrostatically tested to 2000 pounds per square inch. Rule 5. Reservoir_pres_sur_e_ surveys. ReserVoir Pressure surveys will be 'conducted annually in key wells. The'se key wel].s will be selected by the Unit Operator and subm~itted for the con.- . . currence of the Committee. Rule 6. Pressure maintenance p_.r_oject. (a,) Pr_o. _t___A:r_ Zt The pressure maintenance project area is the area de.scribed (b) in Rule 1. Pools..affected by p.r_oject: The Hemlock pool, as defined i.n Rule 2, is the pool affected by the pressut~e main'tenance project. .l. hc pressure mainte nance project may be expanded to affect other pools by administrative approval of the Committee on request of the Page 4 Unit Operator upo~ demonstraLin9 justificaLion for such cxp'ansion. (c) _~_.r.i.!.].! !~..!!....o. f_..].n, j?...q.J: io n w'e ] ] :;_' Dri]].ing and mainta'h~ing injccLion wells wj. thi. n servation Regulations. (d) Conversion of wells' Conversion of producing we]],s to injection and/or injection wells to producing we].ls wi, Il be permitted upon approval of the notice form.s as required under (e) Rule 2203 of the Conservat'ion Regulations.. Fl u id i n j_?-c_t.i_o_n..,'- Injection of water, gas ,or other f].uid into the affected pool or pools is permitted. The type and method of . . fluid injectiOn may be altered for the Hemlock Pool and established or altered for oth.er pools by admin- istrativ, e approval of the Committee on request of the unit Operator upon demonstrating justification therefore. (f) Well spacinq.- The spacing pattern may be altered from that specified under the Conservation Regulations by administrative approval of tt~e Committee on request of the Unit Operator upon demonstra[i, on of justification therefore. Page 5 (g) T_e_..r_!L~_i..n__a_t:.!.9_[~_gZ_~!~.~p_.ens_ton of pr_?sure, ma!._n..tenance p.rgject. The pressure maintenance project may b~ st~spended or apprc)vL~] of tho Com~il'l:oo. o~'~ roquc;:;;t of tl'~c: Unit Oporc~t(:)r term in(~t, iort. EXHIBIT "C" PROPOSED PRESSURE MAINTENANCE PROGRM4 McARTHUR RIVER FIELD TRADING BAY UNIT AGREEMENT Casing Record Size Weight, 16/ft Grade Depth (MD) Hole Size Cement 13-3/8" 61# 2186' 18" 1100 sx with 10% Gel and 660 sx Neat 9-5/8" 47# P6N 9216' 990 sx Class G Stel,...._....~.~ " Method o, O,e,,t,on. Monthly Well Production " ' ' .;' Union Oil Company of C~" mia ' , - Full Time 1- Flowiog " ~{ EYJ-IIBIT "D" 2- Part Time 2. Gas Lift *~ __~_,.,,,~ ~~[ 3.Standing 3- Hughes Llf, ~ ' , ~~,:~ , ' 4 - Shut-in 4. Rod Pump 5- B.H. Hydra-oil Trading Bay Unit 6 - Gas Injection '7-Ware, Injection · [enai Borough Novcmbc~ 19~8 Hck~thu~ Rive~ 1 8 - B,H. Hyd~a-waler ,. 9 - B,H, Elect-pump CountY Date Field Page " Monthly Totals Daily Averages .... ' ........ ' · ., S Pressure t. ~ g ~ Days [Gross Clean OII Water & O.S. GasF°rmati°n Gross Clean Oil Water& B.S. GasF°rm' ItyGrav'Cut RatioOaS/OII e . Tbg. CeO DO~,LY V~.~ ',DENPLAq~F~ ,~,I ~ ~. , ~ i ~ ~ m '- ~ I I I I I I '~ I I I I I I I I 4 ~u-z , I ~oIos6 I s9,,906 I ;so I 1~220 2 I003 1 I997 I 6 Is74~2 . I I I I I I I I I I , I I I I I I I I I I I I I I I I I I I I I I ~ I ,, 4 I)~2 { 1 28 {581616 J 58{382 ~ ~34 I 1~139 2 I093 2 I085 I 8 1648 3qa7 ~Zl 130 '; I ' I I I I I I I ' I I I I · I I I I I I I I I I ,I I I I I I I I / I ~ D-3 { 1 30 [163~262 {162~772 { ~90 { 4Q025 5~d42 5{426 .I 16 1~634 3q2~ ~01 160 2Z '.~ I I I I I I I I I I I I I I I I I I I I I I I I II I I I I I I '~4 D-4 'I 1L 26 1107{263 I10618~4 { "~20 { 2~338 4 ~125 4 1109 '] 16 1 ]090 3~6 ,q ~65 130 62 ~' I I I I I I I I I I I ' I I I'.'~1 I ':' I I I I I I ' II II I I I I I I 4 D-5'{ 1L 30 {33{703 {. 33]602 ]' [01' { ~878 1]123 1{120 { 3 1296 ' ' , ' I I'I I I, , I I I .I I I I I I 4 O-7. I II 30 I 721890 I 721599 I "291 I..2]I022 2 liSO 2 1420 I 10 1701 S~4 '~ "~90 '~20 I I I I I I, " I I I I I I I I I I ' I I I " I I :1 I I I I I : I ' ' 07~882 I '$25 ~ ~ .. Z20 28388 1607 3 Ill ' . . [207 1 [946 .. . i I ' i I I I I I I I I I I I , I · "~' " ' ' ' ' ' {. ,~">' ~ ' j ~ ~ ' ' 4 D-9. I .i Z. '30 I 1284 l' 1284 'I '..:' , ,. I 9 9 , ,.. ' I I I I I ~ I I I I I I I I I I : I I I I I I I I I I I ' I I ..I '1 . . ~ ~189 I [189 ~ ~ ~ ~ ~ , . ~ ~ 2{C' ' ~ ~ 160 4 D-lOl ~. 1~ 29 t ~ . ~ ~ ~ ~ ~ 6 J. 6 .~ ~ i I I'~ I I I I I I I I I I '1 I ' I I ; I · I I I I I ' I I I '1 I I I I , I ;4~-zzl zz ~0 I 91094 I 910s8 ,I I~6I q298 I~0~,I~02 .Iz 177 I ..... I ' I I '1 I I I I I I I I I I Ii ' I . , ,, , , . 67S1343, 10731072 I 2 ¢71 87 1947 19~ !2.2 ~ 77 614S4 , ...., , ,, ,, , ., , , , , , ,,. , ,,, ,, ,, ,, , , , , ' , 'GRCyLIN3 PLATFOR~ ~ i ~: I I I I I I I I I Ifil1 )FOILIA~ I~ · ...' [18 ]39 ]725 3 ]940 .3 ]936 ]. 4 11324 3 '4 a-1 I, ~t so Ill812°~ I t~o~t I ' ' ' :.,. I' I I I I ~ I I I I I I I ,I I I I '. I I I I I , I , I I I I I I It I I I .~ I , 4 G-2[ . ]~ . 30 [7S[7~3 ~75'[637 , .,76 [24[524 21524 2 521 [ 3 [817 ; I , ~ I I ' I I I i I I I I I I I "' I I I " I I I I I I I I I I I I I I I 4 G-3 [ 11 ' 30 [139[550 ~39 [41'1 [ ~39 147]747 4]652 41647 [ 5 11592 341 ': ~ ~42 182 '6( I I I I I I .,,I I I I I I I I I I · I , I I I I I II ' I I I I I I I I, 4 G-~ [ ~' 11 '. 30 [167[325 ~67]158 ] ' ~67. .[61{923 5[577 5]572 [ S 2[064 3~[: ~ 370 150 I , I I I I, ' I I I [I I I I I I I " , i I I '1 I 1' I I I I I I ' i , , ,, , , , , ,,, , , , ~ ",l I I I ' ,~I I ' ' ' ' ' ,',,~ "' , I I I I I I I I ' I ,I '1 I I ,~' I ~,, I ,~ ,, ~ ,,, , , , , ~,e,.___Z, ' ' Ms,,od of'O,o,e,,o. . Monthly Well Production PartFull TimeTime 21 -' GasFl°wlflgLift . ~t ' Union Oil Company of California,,,., , ,, . Shut-in 4-Rod Pump , ~ ~~~ ' " ~ .... 5 - B.H. Hydra-oil 6-Gas Injection Trading Bay UnLt 7 - Water InJecllon ' 8-B.H. Hydra-waist genn~ ~orou~h ~ovember ].~5~ McAr:hu~ R~ve~ .2 9- B.H. Elect-pump County ~' Date Field !"Monthly Totals !Daily Averages s ~.~ z ec Well No. · ~ ~ o Days Gross Clean OII Water & B.S. Formation Gross Clean OII Water Form. Gray- Gas/Oil Pressure t. ~ § ~ Gas & B.S. Gas Ity Cut Ratio Tbg. Csg I I I I I I I ~ J I I I I I I I I I I I ~ I ~ ~l I I I I I I G . YLI,~(;_ PLI',~ .~ CON r'tb~ ~ ~ ~ J ~ I ~ ~ ~ t ~ ~ I I I I I I I I I I I I I I 4 G-6 I 1 30 11601717, ll60l ss~l ~61 I sol~x 5~357 51352 i 5 11697521t [ ~17 150 I . I I. I I I' I I I I I I I I I 4 G-7J Il 30 jllOJ257 J lid 14'J ~10 :.J 38J255 3J675 3J672 J 3 lJ27554J~ [ '~47 130 8c I I I I I I .,'1 I I I I I I I I '.1 I I I I I I I I I I I ' I I I .I 4 G-8J , 11 30 J 84J879 J 8~165 J 2 ~16 J.23J627 2J829 2J739 J90 ~87 3~4 3J2 J288 142 12 I I I I I I J'. I I I I I I I ," ' i ' ' ' i i ' ' ' , , , , , , ~ ' , , , , , , ,, , , , , , . I G-il1 t ] ~0 ~26 Jsos J126~7g J J126 J42 283 4 J210 4 J206 J 4 1 J40g 3~0 'El 133S 135 I I I I I I- I I I I I I I I I' I I I I I I '. i I I I I I I ,. I I , I I I I I . I I I I ~ I I"'; I ' I I I ' , ,, I, I J I I I ' I · I . , I I, I I I I I ' i ,',' I I I I I I. I J '1 I J I "-i - I I I ' ' I I I I' I I I I I I I J : I I KInG S~2ION ?LATFO ~ J ~ ~ ~ I ~ I, I ~ ~ I I K'I J' J i 23j70, I 21459 , J2SO 75 "' ' , I' I , , , I I I I I I I I , , I I I I .J I I I I I I I I 1 .~ ~ I I I ' ' ' J 2 1393 ~912. 2 ~674 ' ' K.-5 J ' J 10j69~ J J955 , ~ , , , , J ' , ~. . 4 . J llJ64g , . ' . J258 ~ . J598 54J4 8J~ . J224 75 80'C ' ' ' ' i ' J "' ' ' , .,, ., ...' . :', , 'j878 3'1376 3 1366J l0 "" ' J2S ~863 3416 3 J256 7S lSC , ooioa' , . . , I I . I I I I I I I · ' ' J 135. ]j9195 1289 4 ~670 ' ' '' J~4o, ~], I ~8Js6s , j61glj1972~6liE2 . 1256150 ' I ' I I I ~ I I I I' · I t ' I I I · I ' , I I , ' , ~ .. .. I , I. I ' ' ,' , '. , N 1 19~i9, , , " I ' ' ' I ' ' ,. . . '' . , I I I , , I I ,. , , , , ., .. I I I I ' ' ' , ,. ~lv~sio. ~F~L A.).? j ., ,. "' .: . I ' I. ..I ,: , , '~: .,~ l: '~" ' '' "' . I. '. I L.i I " latuo F'ull TImo Part Time Stafld;ng Shut-in 'Melhod of Operatio. ' ,,, Monthly Well Production *" -:mowing ~.~' Union Oil Company of Califor~r - Gas ,Lilt ~ - Rod Pump 5- B.H. Hydra-oil Trading Bay Unit - Gas Injection 7- V~ater Injection Kenai Borough November 1968 ~IcArthur River ;5 - B.H. Hydra-water - B.H. Elect;pump County Date Field Page Monthly Totals I Daily Averages ~ Well No, ; h~ On Days Gross Clean OII Water & B,S, Formation Gross Clean OII Water Form, Grew Cut Gas/Oil Pressure · Gas & B,S, Gas ity Ratio I I I i ~ , , , , i I ' ' , I I i '] ~ ~ I I I ' I I I I , ~~.~.~o~ ,,.~ .~ON~f'~ ' , , , , , , , , , , i , . . I I I I I I I I I I I I ~ I -,-: -- , , I I I I I I I I I I I I I I I I I I I I '1 I I I I I I I l K-6. I ~, '[ I [ I I I [ .' .I I I I I I I I I I I I I I I .' , I .] ]. 81 ] I ] i I ~ I [ ] I i I K-?,I :: s , z ,192 ,l zl, 492 ,l ,1435 ,I ,tiTS 1386 ,1299 ,I 87 ,l 35 .l,221{ ,,., ~16, 75 1,025 K-9 ,.l i so '~zlo 1068', , ,12°9l, 641l, ,142° ,l~s ,1484 ? 1002 6 ,1988 ,Il4 2 ,Iz~ss,{s, ,I: ; ~os', zso .. '. I I I I ' I I. I I I I I . I I I .I I I I I I, , I I I I I I I I I I I I I , ~.~0'~~;.:~. ~F. ~s,440 ,~4~ ~s~l~si~os ilo~.~ ~44 ~4~s~ ~0~ ~Iso~[ .., ~,. ... ,. ~ [ ] , i i i i ~ ~ '~'"[ ~ ]~ ~ "~ . ' ToTA~ T.. ~ ~..U.. 29,1742'.13001 _00" I 291 735~. ~ ~ .~ _ ~95.. ~ ,.1246~. 8.... 407 8~077. Z 1~30. 24168. j' '. , ," · " ~ ' ' '' ' ~ [ ' ' "' ' : ] ' [ ' ~" ' 69 ~ ' ' ] ] ' ' [ ~ [ I ~ ," ' 940 ..~TOTAL N='~ S33RAGI {12- -68 I ] [ ] ] ' I ~ ~ , t ,' , [ I I I I I I I I . I I I I . i I I . ~. ..~....}:~.~ :~r~" p~,m~ at s ~ w~,¢~ ' ' ' " s4~, ' "' ' " ' ' ~ ¢ ' , , , ~lgOa q,s~p, ' ~ ~i ~7), , I' , , , , ,, ,, , ,, ~ <:" '~ ~ ~ ~ ~ IS64~ S~ , , .... ,. ~ .... ,. ., , , ., . , , .., , , .,. "' I I ' ' ' ' ' ' ' " ' ' ' , ::" '":" j': ' I I I I I I ,I I I I ' I I I I ' :" '~:'."" ~ , ~ ~ ~,~'~.' lagalBb]sI. ,,.~s4 's ~rav~t~ , , ~ ~ ~. ':'. , , ,, ~,~: 4S~Sl~l. "is'4. ~ ~=~t~ ,., .'., 2 3~o, .. . .' ..I I I I . .I '.1 . I I .'..: I I I I I . I I I I I I ~ ' ''? ~;' :' ' ~ I I I I , I I I I' I I I I . I ' . 'I I . I' I ..'::.:.' . '..~.. ~ '. '[~ps 'r~a;~[ ~co~'qa~IF~O,,~l: ~-~s ~f~l ',, ,. , ,, ,, , ,, ,(~{~o) I ' ' I "1 I "I I . I I I I . ' I ' I I I , I I I . . I "I " I, . I I I I I ' "~ ' ~ ~ ~ ~I1 I ~'.~ ' ~ ~ ~ ,'' I' ~ ~ ~ , r,', ....., , ~ , ~-2 , , ~ ~ , ' ' ' I (f,:'.4) , . '" I .,.' I I I I I I I I I I I ' I I .' ' '1 I I I I I I ' I ' I I I I ' :' I ,. ~ I ..' ' ' ' ' I ~-s v¢~ I... , ~..,. , .., , .. .. , , (~,',o) I . .:." I I I I I.' I I I I I ' .. , .,. , ,. , , , ',. ,. ., .I ' ' ' ' ' ' ' ' ' " ' " I ' .'I ' ' '" ' ."' I I' ' , -? v~z~, , . , z.~4 . . ,, ~, , I I '' , ' ' '' '' '' ' ' '' ' " I I I I I I I I I I I ' I I I ' I., , , , , , , ,..., ,0All .. . ..' ~ . ~ ~ , 2 306 203~ ' I I I I I I I I I I . I , '1 I ...... ' : I'~ ~ I I I I I I I , I ' I I. I ~ I I I I . I I I ,'1 I . I D~I~IOIO OIL I~ I I I "'I' I ~ I ~ ~ I I I ' ~ . ~ i .~ .. ~ .'2 376 ' 143 I I I I I' i,: I I .'"1 ...' ~,NC ~ i I .. i ~.~ :1 I . .,. ':' I I I I I I I I I I I " I '. I ,,' I ' I ' I ' . , ,, ,, ,....., ,, ., . I I I ~. I I . ~. .i.. ~ :l .. 76, 136 :"I , , , , , ,. "I , , , . I ' I I I' I ' ' I . I I' ' .' ' ... I ~ODU'C' ~ I ' I ' ' , ', , '. , . . ,, ., , .~I..:'2300,.007 ~9~81 ' ,. , ,. , I '., ., .., . ' '. ...... . T~A[~~ r m ,,"~o~ o~ ~pw~m~ ' ' ' ' ": " ' ~ )."I : .'," I',." ," "'!'"" '!' !" "!' ,'" " .'"I'' '"'' ',' ."I""," ,"".II · ' 'Union Oil. Company of California 2805 Denali Str¢,'-'., A,. .~rage, Alaska 99503 Telephone (907) 277-14~1 . . January 10, 1969 .WEST FORELAND AREA Sl~ate of Alaska ' · Proposed Pressure Maintenance Program McArthur River Field, Trading Bay Unit Agreement Gentlemen' .. ~las~a Oil and Gas Conservation Committee Division of Oil and Gas 5001 Porcupine Drive Anchorage, Alaska 99504 · , In accordance with the prOvisions of Section 2226 of the Oil and Gas Conservation Regulations, Union Oil Company of'California,, as Trading Bay Unit Operator, requests approval of the pressure maintenance program 'for the M~Arthur River, Field hereinafter set forth. -.. · --. The results of injectivity tests and reservoir performance studies of the Hemlock formation utilizing a mathematical model and a high speed digital computer all indicate' that pressure' 'can be imaintained and that oil recovery will 'be substantially increased by water injection. The attached Exhibit "A" is a plat of the Trading Bay. Unit showing the' area for' which the project is prOposed and the locations of .producing oil wells, proposed injection wells ~nd .propOsed oil wells. Present plans include 19,injection wells around the periphery of 'the reservoir and 45 producing, wells. If the need arises or if results of continuing computer studies dictate, a five or nine spot pattern may be utilized. All presently produci.ng oil wells within the field are completed in the Hemlock formation. Said formation is a non-marine, conglomeratic sandstone of Tertiary .age, the top of which that will be affected by the herein proposed project lies at depths varying from 9,000' to 9,865' subsea. . · , ,. Exhibit"B" is' a Dual' induction Laterol.og of Unit well K-6 (32-16) in which injectivity tests have been conducted.. The casing record of said well is attached as Exhibit "C" and is essentially the same as that which will be used for all injection wells subject to variations required by depth differences in . particular wells. Each injection well will be equipped with a packer above the' injection perforations which will accommodate the tubing through which water will be pumped from the surface to the injection perforations. The production casing above the injection packer'will be pressure tested with treated water to 2.,000 ..Psig before final installation of the injection tubing.. FORM 401-ANC (REV. 8/67) ,. DIVISION OF Oil. AND GAS , DI¥1,SION OF OIL'AND G,~. · Alaska Oil and Gas .,onservation COmmittee ~ January 10, 1969 page two ' Injection of treated Cook Inlet water will commence during {he firs~ quarter of 1969 in from 6 to 9 injection wells. Injection rates will be based on reservoir requirements and ability of wells to take water and are expected to range from 10,000 to 15,000 bwpd at approximately 2,000 psig surface p~essure. By the end. of 1969 it is anticipated that water will be injected into approximately 19 wells, as shown on Exhibit "A", at a total rate of approximately 200,000 bwpd, . The Monthly Well Production Report for November 1968 is attached as Exhibit "D" and shows the gas-oil ratio and oil and water production rates from each well in the McArthur River Field. Union 0il Company of California, as unit Operator, through the sub-operators listed below will conduct the pressure maintenance program proposed herein' Sub-operator Union Oil Company of California 2805 Denali Street Anchorage; Alaska 99503 Platform Marathon Oil Company P. O. Box 2380 .Anchorage, Alaska 99501 Atlantic Richfield Company P. O. Box 360 Anchorage, Alaska 99501 Grayl'ing Dolly Varden King"salmon . There are no operator~ offsetting the project area that may be ~fected by said project other than the participants herein, all Of whom have approved the proposed pressure maintenance program. It is therefore respectfully requested that you approve this project without 'the necessity of holding a hearing. · · Very truly yours, UNIO~ OIL COMP;uNY OF CALIFORNIA OperAtor · .... Attorney~fn_Fact / / EXHIBITS A&B IN ENCLOSED POCKET EXHIBIT "C" PROPOSED PRESSURE ~b\INTENANCE PROGR~,I McARTHUR RIVER FIELD TRADING BAY UNIT AGREEMENT .. Casing Record Size 9-5/8" Weight, 16/ft 61# 47# Grade De~pth ('MD) Hole Size P&N · '2186 ' 18'.' 921'6 ' '- - 12t~" ... .~',..7 :.-,.,-...,.'!..i,~ '.; '...,.'. .... · . ., · · . · .. i Cement 1100 sx with 10% Gel and 660 sx Neat 990 s.x Class DIVISION OF OIL AJqD OAS ANCHO2AGE · ._ ~ ~. . .".'" Union Oil Comp~ ~ ." . ,.'~ '.... .- .~:: ,. · , · . .. · Kenai ~oro'u~h_ November 1965 County Date Fiold ' · ,f California. ~XHIBIT '"D" .. ;,~4:., ~ Trading Bay Unit "'" .-' ~IcArthur. River l__l__ Averages .' iMontnlytotals . ~ J =-- , .. .... ....... , ,, , ' Ptossuto ....... "' I I " S - · '?J'JJ Z i · . Formation &B.S. l . c,..o,, c,-.o,,I DOLLY ~g&:4BP~ PLAI~FO~'II' , ~' ' ~ .-~ ~ ~ ~ ~ ~ ~ ' ~ '' I. I ; I I ' I I I I .' ~... "' ~ 1 ' " I ' ' . . . ' ~ " ' '" I I I 'l I ' I '' t ' ' I I ', I I I ' · 80'- J ~ ' ' , (', ' -.. 1 220 2J003 11997 J' 6 J574.~21~ ':.,. ... j... l.S l .... , , , , , , ....... ' I -. ' i I I I i I ,. ,I ' t I I · I I I ' ' "" 4 1)-2 j'..' Il ~ 28 I J 58 616 J 58382 J-, '.~34 J'. 1~159 '2 J093 2J085 J- 8 J648 3~ .: . ~11' .130 ... ': 30 "' '262 . ', ..5': ·. 4 O 5~1"--' 1. 163~ ~162772 90 J: 4~I025 51442 5',426 r6 lj654 3~: ~01 160 2~C - , ...... - j j._ , , , , :~.' .. . ""':'- 1.[,.." 26. 1071263 ,-J1061854. , ,:,.,,J: ~;,~29. J'.'28338,: i 4 125 4J109, .'J,...16 Z,IO90 3~6,..:.:.,~:.,.., .'. ¢65: , 130 -.'.625 · , , ,- '-"." ' ' ' 4 D-5' J ":. l~ .';).. 3.0 J53 J70S I. '~516o2 J.'l.., ~o[. j-.' 8878 1 1123 1 J[2O J. 3 . ',296 3~2 ~ .: ¢64 110 ',. D 7 ~'`' ]: ~': ' " ' ' ""'' ~.:..'" 21i022 ~' ' 2 J~ ' ' ' J .' ' '"'"" 4 - ':l .-'": 1 ~0'-' ',72 890 72599 J.?' gg~', , J4so 2 420 I ~0 -J70: 5~ '.': 5' '''.:''5 2~0 ~20 .. 4 D,8 j.-:'. '30 I~08 -107 . ':.': ¢65 .120 -: .' 1207 882 J.,:'-...] g2S .-2 588~ S 1607 515~6 J 11 ' J946 3~4.':.':" 4 D-g 'j'"::':". ' ',' ..z"--",. ",..:.'--,'. ,' ., g .J ' g ' , ~ J '1~0 lOOt... , , , ..'~ ~ .- ',..:': j ' , 7-' 1 . '30 ' J284 J". J284 , , ,,' . I I I -- I 1_72 I I ' I I I I ~ . I :'..- - I I I I '1 .L I " I ' I I -I I ·" ' I I I ".' - ' . i '189 J Jlg9 '" ' ' ' ' 6 J' 6 '" ~ 2~O .... "j . '. 160 ., 4 D-IOJ 1~ -29 ~ I ~ "'~ ~ ~ ~ ' ' ~ ~ J " ' I ' '- ~ ' , ~ ] i i t · I- ~'. ~ ~ I ['-' '[ [ "['-"'..~ · ' ' " "1 I I - I I ' ...'.''1 I ' ' ' ' ' ' .,'"' ", ' ' " J 77 5~4 '. ~ '-:'~54 4 D-iI1'"' 1~: .'"' 30 I 91094 J 9[058 J ~298', 1303 "',~02 .,' 1 l... ~36 . . .j.-.,.-.. , .:. i · i i ~ ~ '~ . ~ ~ --: ~ ~ - ~ f .{ ,'~ :. ! , ... -j ' I . .,. , , j ",". '~ J . ; ! ' ' ' J -" "' 4 D-121 - ltl: 30 ~ 61 ~749 J 61,564! I ~85 J 14 1639:2 lOS8 2 1o52 · J~ -6 1488 s~2 ..~. ~ . ~38 100 '70c -. J' I:.'. l'.' i ! ! ."~ ~"' , , ! , ',' , ' ...~ ..... ,~ . ;~ · ~ · i 2~ , % .~ ~1 ' ' "I I ' I j ~ i I- . I I I : ~ I ' I ~ IAKA I - ~"~g~'~J/~ . ' · TOTAL' IDI '/ PiLTF m675 ~343 !67~072 J'2 ¢71[ ~87 ~947~ 2.~199 2~122 '' ' ir:' :([, ~', '.-~ -~. , x' :. ~ ...... ~ ..... ~77 ..,~,o~ [ ..... i I . [ : ' : I · I ~ ~ I · I · I I . ~ 1. -I · ' I I I I I I I · ~'l"l' ~ ? '~ ' I-I I ""' ' ' ' ' ' ' I ' I I I : I .1 I I "I I I · ~-l'l".' 1[[: ,' J 30 JllSJ20~ J Zl~Ogl i"' ;~I8 J3~J725 3J940 3J936 J..4 lJ324 3~;~ ,..:.[AN~?36e 220 83C · l.: ; ! ~ i i ~ ~. , ~ ~ · I - ~ ~ '.~ ~/ '..'~, .:.-. 'i'"-.1 -- - ~' ~ .~ j - ' ~ ~ t ~ ~ ~ ' ~ ": t:' '' 2i~21 ," 3 J817 3~ ';].[ .::'..~24 . ~80 '44( ~.... ~76 'fl ~-2 J :-:: 1[ ., 30 J 751713~ J75,657 '"' :'' J24J524 2~524 '~ I t ".~. I" J · · ' I ~ ". I I I I I I ' [ I I I I ''.'1 4 G-3. ! ,' .li[' 30' JISgJS50r ~39 J41t J' .' [39 J 47'J747i 4 j652 4j~47 j'5 i J592 5~1 .'. :: ~ ."'. ~42 ~82 '. I:.. ~1. . ' J ~ ~ -J ~' ':'.j -~- ~ I ~ ~' '~' ' ~ ' I ." I I' - I ~ I · I I ' I ' .' I '". ' ,','.. , J l- I , , l '4G_~ J-.:.':. ilZ ..:-.~ ~0 : Ji67J325 ~67.1158 J'...~67J61J923 515775 572-- 5 21064 ~;.." ~l...-. ~701 150 ' -'1 - j . . , . ~ ~' ~ . I ~' ~ .-- J I ' ~ · ~ ' I J ' .' , ' I {, I I · ' I "' ~ - ,' j i · I.' I i I .' · .I · I I I : ~ ' I , I ' '.1 ~ ': '.'~' ' · . I ,.40-5 ,."}~'i2,[ .'"'- 5 , , 6,004l , 5,758 j..'.., f46,.,. '., ' "'J lJ215.'~J200.i.,IJ152~ ,'J 4~" jJ245~'l'5~IJ' 4. ~' :"'J'' '[~ '.:. ~[~' ~,~,= .;.,,o,~o,'~,o~o,~,,~, _ ~._~,::~ · "'"' "~' ""' J ' "' [' ' - ~ 'i',~".';..l..'; ~ '.' l-Full Timo · 1-Flowing ' "'G-Gas InJoction I ' I . 1' I' ; ..' ., I .[ I I ~H[~'~' s'~ff , '~ I - Full ?~'"~ 1 - Flowing .' - ,.. , - · ,~ . .Part 2-Gas Lift -' ' ... . . . ' Stabs, d 3 - Hughes Li;t ' · ' . .- ' · ,Shut-ltl . 4 - Rod Pump : 5-B.H. Hydra-oil .- ' · : .. 6- Gas Injection ' ' · . . "': 7- Water InJoclion '- Kog,~ ]~o'~,c)[],o'h - '. 8- G.H. Hydra-water · .~. 'Page g. B.H. Elect-pump Cou'nty Dale Field '.. · Union Oil Company o' "'.alitornia . '.: i" ' ..':-.': .' '. '...: .'.. ' .~.,_~- ... ..:....:- .. ............. ... ,....: .... .. Trading Bay Unit'-. '.. "'.. '"' - ' November 1968 McArthur River ." ,...2 . · ' ' j Monthly Totals ' , jDaily Averages .. ' ' , · ,. , , · - . ! ." z ' J ' Form. ,a,,v-'C,, ...... ' 'J~ 2 ~ ' &mS. a~s 'ity I J:,{ · t {_ - 1_ . -...~" · , T~,. ..... ' ~' · ~ ' - " ~"~ ~ J ~ il ~ " ' i- 'J - "'J ' ' ' i -. ~ ~ ~ . ~ ! !' i ....i I. I. J ~ i i I I I I . . G~YLI~(; .PLT,~. cd~',r"D 4 J ~ , i,' ,' . j , , , , ·' i I I I ' '1 . : - ~ ~ ~ ~ ~ ~.~.- .] 357 - [ · ~17 lSO [ ' , ' , "[." I I. ~ ~ ' - I ]. i ' I [ I I I J ~. I. -:.: ~ ~ I ! ~I'.":.I t "~]" I. ~ ~ ' "' "~ ' i-' ." i ' '"' ' i . I' i i :... i · i' ... ~-~ . ' [~ .-..,.. I I I ~ I - I .' I :' 'l ' · . i - i. ~ ' i1' ii -. ii ..11 .. · · I 'i ';::"' ' I I -I.- I.." !,; .I I -I ' ~ I I ' ' ' I . I ,.;[' "..I ' ''' ' "I' J'".' I ' [' -I -.- , ..' · -., ., ? , , .-. . . '-- I J ' ' .'-''."" ' " ' I' .. I''- .'.J.. I I "I G-IOI-...i~. J :-' ' I · I ' .I I . J..;J I' I · - ' i '.l. - '~ ': i I I I ...'-I. . . t-'"': ,' I '.';:' ." [, [] .-ti . ,I ['" .., i I : J t' t ', i '..I t ' ' ' f' I 'l : ' "" J3'35 135. ". i . ~ - . · I i. . ~ ~ .~.:.-:l I. I .-j.. '- J 'l .. i - i . ..-.. :)'.:.. I':. - ..'. . , I I I I- · I ' I I ' ' ' I I I' ,C-['2 :-' ~ '.'-:' ;J ', ' ' ' '"'' ' :'" 'J .' J' ' ' "j *'" '"" " "' , I I ' I .' I ' I · I' ' I I -'' ..' I' ~ .... ~:~.:: .... . . .,. ., ., ,., ,.. ,.. ,.,. .j -~.' , , ..,....:... ' . " I .' ~ .' :' ;: , ,. .....~, , , ,-. ,:..., .,. , ..", ~ ....~"'; ,..., ..., : . . .......:..: ~ ,,1': ~ . '.-- I . ~. · I I .-I ~.~ ~ : 'J .. ~ .. ~ ..~ . ...."..." o-zo~' ., :' .' ~ ~ ~ ~ ~ ~-" ~ ~' ~ ' J J ..' ~ .: ~. .. .~..:... I ' . J ~ : I I I I:.. ' I : I.. I ' - i' I¢:'l. I I J ". I ,".'!.' I ': "':'::.. i - j'- ~1/ :, , -', ~"~ ' TO?AL ~]~YLIIWG PIj'~DSD " '" ' ' ~..~.l. j. ii .i " ' ' '- ' j... J '".;J .";'~. ,' i ..' ,, ,.,.-,.,, , , ,, .,., . ,-...., ]~-~. lb. iff ~ . so : ~ss sss~~ ' '" ' '" ' ' ' 155J 20: J-:.-. J467 5 ~1733 i42i662~189 9 .. , ,.:..I . . ' ',.': !'-. '~J 'J , ',"~-', · j.,::;~ll....: .. '~ ~, I,:.,, . .-, , ,. , , 912.j j238 .. I 800 '! .2 ?93 27~4 ?98 ~4i4 I "~ '.: '"'"-~'" ' " ' ' ~ "-', ~....:I '. · ' '. ;' / " I I ~ 'l ~3 ~256 75 180 '1-' ; 1 '. '~ I I ~ '' K.4'.,: '.~ ~ 50' EO1 ,287 100! .g8'2 j..-!504 !25' ':,'}878 5'~576 S 76' ,lzo "lsas s47' ; '.l .- · . i I 11j7 '. 'J256 I I" I ' I .' ~ ' ' ," I · .' ' · "-" I'-' ~' ' ~ ' ' ' K-St, .;"ij2"- 50. ~ ~58 ,6761 j 1 ~197 ~5 ?80 6 4 j670 Jj619 ' ~ I I I ~ I · ' · ....,.-...~- I/..... -_ " '' '"'"'' " I- I' I' 'I' '~' '"' .... ? . .., ., ,,~ ,' ~ .-.,. , ,. "" ':"'" ' '"' ' ' ' ' :' "" ' '~ ' "~ ~ ' I' I*'~'''~ -I'- I '-- I . I ' ' .. '-~ .I '.' I.' . I' - I; . I ; , .::,'*1'"'?,[ J r .' '.. ~ I I i j I ": I -'1 ,..~...,-.. ~ ...:. ..,,. , ..j .; j.'. . J... .-,, · ~ .. '-:'. . J . ' "' - ~ I ' '1 j. I ' I .~ I . . I -. -I I '" ""' ' ":' ' '"' ' "' ' ' ' :' "'" ' .... ''- ~'..- : J' I -" . j [~N-I',4j'19~°'' ':''''':: . "' ' .'-1' · j' :'..' ' : _-; , I I - ' I ' t'-';: I I L'".I,- ~;',:'~ .... ~ ~.-' '."-~J'-"-.l-; l""' "'"" ' "'": I" 'l.~.. "'; ':' ' .... '~' ' ' '~'-:"' '. j .:. ' ' J ~v~ .' I [." I .." :. . ";."'..I -' '..: I'- .' ' " ' " ' ' I -..' I ~-'-'.-I ' '. I '.. :".' '". '.': '" "- ' ~ J. ,.-.i,'~,. ' "'" ' ' ~ ' . I ' ,Nc~r~l. '"'" '"""' "".1"(' ':, ' : .I ' '1 . ' I'.f.. j '. : :'-.!:-.;' :.'?-. -' .'-' l:'" [ .. J "l-".l I :.. t---:. I.: -i. l.~.. , · Ii "~.. '.'-' : ' ' , I' 'l':'I ['",;'.J.'"' .~'":': "' ""J ,.i ................ -7 .............. ~ . Union Oil (~ompany ~lifornia .. Fu'~'"'me 1 - Flowing . : ' .. . '.. .~. P;: ;ne 2.Gas Li,! .''~ · I~-'I 1~ F';'"~ ~ ~. ~,~ : - Shut-i. 4 - Rod Pump . Trading Bay Unit S - B.H. Hydra-oH - River . 6- Gas Injection · . ' 7.w~, ~uo~ Kenai Borough November 1968 ~IcArthur 8 - B.H, Hydra-walor Pago g- 5.H. E[~cl;pump Gounl7 Dado Fiold Monthly TOtals l Daily Averages , " ' ....... Form tion n'O --~ ~ '~ I ..~ ~ "1 ~ {. I I , , · I " I I I I I I I ~ I I I I I I I , J ;" I '.,.I ""? '.'. ~ "...- · ! -' ' -I - i ' ~ I I" ! ' '""; I ' .' ' ..'1" . ',' I · ' I - I ~ / ~ , I · I / I . . i . .. . . ~ .I -',' ' "( -;" · ' -' .... : ; -: . '" ' ~ ' q- ~ " I '. -' I ",' j .' · ~ I" . I "'. "1 '' - ',.- I" ~ / · ~ .... I . I .. . '] I '1 " : ' ' - I I · I -. !.. ': I:'. / I ;" "I ' ' .I · ~ -'" ' I . { · · ' I I ~- / / I .' I ' I~'' 'l .:. J' I ..,' '1 .' I I'" I . ' '. ,' '- I/ J ; I I - 'J -. .' ' ' I .'. ~ ' I. ~ I j I I I I. · ST(,RAGE I "' 'l . ;.I .'".-'. ",. :.. ", .', IR ~4 W RI3W .................. ,,.co ,., -., ., 1 -- ..... ,-, ........ + .~ + T N + + F + + + + RI4W i + i i I i ~T"AOINO BAY UNIT R 9 N + LCG~:ND ',. EXHIBIT E UNION OIL COMPANY OF CALIFORNIA STRUCTURE CONTOUR MAP EXHIBIT IN ENCLOSED POCKET 2.5 2.0 AY UNIT - HEHLOCK FORIqATION EXHIBIT H F.V.F. vs. PRESSURE ISCOSITY vs. PRESSURE i I · ' .: I · i .I · i 1.15 1.0 0.5 VISCOSITY~ 0 500 1000 1500 2000 2500 3000 3500 . , 4000 1.1C 1.0 1.0' 4500 RESERVOIR PRESSURE- PSIG 5OO 400 30C 0 Z 20C lO0 O0 500 1000 1500 RESERVOIR PRESSURE -PSIG TRADING BAY UNIT - tiEItLOCK FORMATION EXHIBI'F J GAS F.V.F. vs. PRESSURE GAS VISCOSITY vs. PRESSURE 2O O.C '~' ~) 10 o Z ~ 0 VISCOSITY ; ' I ..... ' ............'l " i · ' . ...... .--; · · · · ~ ........ I i · · · . "-.'. ......... ."T ................... ; .......... ~.-.;: ,~ ................................ i ......... ' ................ ; ......... : ...... ~ ' : ~ ',-' ' ' -' ' "" ' ~ __,~"~'" ' ' i .... I. '1 .." ." ~.. ~ " ' . i I : '1 ' "'"' -'-J .... .......... . .... ...' , ~.' . i. .-.i .. .... I ~ .... I ' .-I .... : .....[ .......... $ I .... ' --- - ' ! [ ...... 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' ' ' ' I' ; · I . · · , . i ' ' ' I ''' ~ ; .... : ' ' ' ' ' ' .' .... '. ..... :"'. ....... : ................... · ........................................ : ....... '-' -' ...... i ...........' ...... · ...... · .... ' : · ; .. · :".'... . J.. . ' . · ' " ' : · ' · : · · .: i . ~ ............................ "': ..... '":" "'".:. ' '!' '-' ..... i - ' ... ' :._.' .... ! ..... ! ! ' : :..__1 ._J .... j ' ..'.- · I :. ! ' · 'j' " I : J ..... l' · .. · ~ 'i. : i ' ! , '. ' _.:.:.-./ .... : ..... L_ : ' ' 'L":' ' "' " "i_ ' L ' .................................................... I ....... ' ............. : ...... ', .... --'"JO 0 500 1000 1500 RESERVOIR PRESSURE - PSIG .... ' · 0 20 40 60 WATER SATURATION - °/o 80 100 PROPOSED FIELD RULES McARTHUR RIVER FIELD TRADING BAY UNIT Rule ]. Area where Field Rul-es are applicable The area described as follows will be affected by these rules' Township 8 North, Range 13 West, Seward Meridian All of Sections 4 through 8 inclusive Section 9- " ~VV~', 'NE~- Section 16' Vff~- All of Sections 17 through 20 inclusive Section 29' N-W! 4 Section 3 O: NE¼ Township 8 North, Range 14 West, Seward Meridian , Section 1' All Section 12: .. ' E~-, NW¼ TownShip. 9 North, Range 13 West, Seward Meridian Section 9' S½ Section 14' SW~-' All of Sections 15 through 17 inclusive 8ecti0n 18' .. S~- All of Sect[ons 19 through 22 inclusive Section 23' Vff~- SeCtion 26: W½ All of Sections 27 through 34 inclusive Section 35' NW¼ ., Township 9 North, Range 14 West, seward Meridian Section 24. E½ "' Section 25- E½ SeCtion 36' .NE~- The area may be expanded or contracted by administrative approval of the Committee on request of the Unit Operator upon demonstrating justification for such adjustment. At such tinge of adjustment, the area shall not exceed the Trading Bay Unit Area. Page 2 Rule 2. Definition of .pools. (a) The Hemlock Pool is defined as the intervals which correlate with the interval 9372' to 9897', in the (b) Union Grayling q%lA well. The Grayling Gas Pool is defined as the intervals which correlate with the interval 4126' to 4570' in tt{e Union Grayling ~IA well. Other pools may be established by administrative approval of the Committee on request of the Unit Operator upon demonstrating justification for the establishment of such other pools. Rule 3. Well Spacing. The spacing pattern for each pool,, including well density, and distance between Wells may be altered from that specified under the Conservation Regulations . by administrative approval of the Committee on request by the Unit Operator ,.. upon demonstrating justification for the requested spacing pattern. .. Rule 4. Casing and cementing practices. (a) Surface casing will be landed at approximately 2000 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 (b) before drilling the shoe. 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, Page 3 a casing string may be run and will be adequately cemented at an intermediate point an'd a liner landed at total depth and cemented, sufficient volumes of cement 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 100 feet of cement between the liner and casing annulus. Casing and well head equipment will be hydrostatically tested to 2000 'pounds per square inch. Rule 5. Reservoir pressure surveys. Reservoir pressure surveys will be 'conducted annually in key wells. T[ese key wells will be selected by the Unit Operator and submitted for the con- currenc8 of the Committee. Rule 6. Pressure maintenance project. (a) Project Area: The pressure' maintenance project area is the area described in Rule ].. (b) Pools affected by_projeqt: The Hemlock pool, as defined in Rule 2, is the pool affected by the pressure maintenance project. The pressure mainte- nance project may be expanded to affect other pools by administrative approval of the Committee on request of the Page 4 (c) Unit,Operator upon demonstrating justification for such expansion. Drilling of Injection we].ls: Drilling and maintaining injection wells within the project area will be permitted upon approval of the notice forms as required under Rule 2203 of the Con- servation Regulations. (d) Conversion of wells: Conversion of producing wells to injection and/or injection wells to producing wells will be permitted upon approval of the notice forms as required under (e) Rule 2203 of the Conservation Regulations. Fluid injection: Injection of water, gas or other fluid into the affected pool or pools is permitted. The type and method of fluid injection may be altered for the,Hemlock Pool and established or altered for oth,er pools by admin- istrat, ive approval of the Committee on request of the Unit Operator upon demonstrating justification therefore. Well spacing: The spacing pattern may ,be altered from that specified · under the Conservation Regulations by administrative approval of the Committee on request of the Unit Operator upon demonstration of justification therefore. Page 5 (g) Termination or suspension of pressure maintenance project_-. The pressure maintenance project may be suspended or terminated as to any pool or pools by administrative approval of the Committee on request of the Unit Operator upon demonstration of justification for such suspension or termination. PROPOSED FIELD RULES McARTHUR RIVER FIELD TRADING BAY UNIT Rule 1. Area where Field RuIes are applicable The area described as follows will be affected by these rules' Township 8 North, Range 13 West, Seward Meridian All of Sections 4 through 8 inclusive Section 9- W½, 'NE~- SectiOn 16' 'All of Sections 17 through 20 inclusive . . Section 29' NW~ Section 3 0' NEt- Township 8 North, Range 14 West, Seward Meridian Section 1: All Section 12. ,. E½, NW¼ · . TownSh~ 9 North, Range 13 West, Seward Meridian Section 9' Si-' Section 14' SW~- All of Sections 15 through 17 inclusive Section 18' .. S~- Allof Sections 19 through 22 inclusive Section 23' WA 2 Section 26' All of Sections 27 through 34 inclusive Section 35' '· NW¼ · Township 9 North, Range 14 West, seward Meridian Section .24. E½ Section 25' E½ SeCtion 36' .NE~- The area may be expanded or contracted by administrative approval of the Committee on request of the Unit Operator upon d'emonstrating justification for such adjdstment. At such time of adjustment, the area shall not exceed the Trading Bay Unit Area. Page 2 Rule 2. Definition of pools. (a) The Hemlock Pool is defined as the intervals which correlate with the interval 9372' to 9897' Union Grayling ~lA well'. , in the (b) The Grayling Gas Pool is defined as the intervals. which correlate with the interval 4126' to 4570' in the Union Grayling ~%lA well. Other pools may be established by administrative approval of the Committee on request of the Unit Operator upon demonstrating justification for the establishment of such other pools. Rule 3. Well Spacing. The spacing pattern for ea'ch pool, including well density and distance between . we].l~,may be altered from the .statutory spacing by administrative approval of the Committee on request by the Unit Operator upon demonstratir~g justification for the requested spacing pattern. ' Rule 4. Casing and cementing practices. (a) Surface casing will be landed at approximately 2000 feet to protect known'fres'h 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 pe'r square inch (b) before drilling the shoe. Production casing will be landed a[ total depth and .cemented with a sufficient volume to place cen~ent above known productive sand intervals. The use of multi-stage cementing procedures will be permitted. Alternatively, Pa'ge 3 a casing string may be run and will be adequately cemented at an intermediate point and a liner landed at total d.epth and cemented, sufficient volumes of cement being used to place cement above known pro~luctive 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 100 feet of cement between the liner and casing annulus. Casing and well head equipment will be hydr°statically tested to 2000 'pounds. per square inch. Rule 5. Reservoir pressure surveys. Reservoir pressure surveys will be conducted annually in key we].ls.' These key wells will be selected by the Unit Operator and submitted for the con- currenc6 of the Committee. Rule 6. Pressure maintenance project. (a) .Project Area: The pressure maintenance project area is the area described in RUle 1. (b)' Pools affected by project: The Hemlock pool, as defined in Rule 2, is the pool affected by the pressure maintenance project.. The pressure mainte- nance project may be expanded to affect other pools by administrative approval of the Committee on request of the .Page 4 Uni[ Operator upon demonstrating justification for such expansion. (c) Drilling of Injection wells; Drilling and maintaining, injection wells within the project area will be permitted upon approval of the notice forms as required under Rule 2203 of the Con- servation Regulations. (d) Conversion of wells; Conversion of producing wells 'to injection and/or injection wells to producing wells will be permitted upon approval of the notice forms as required under Rule 2203. of the Conservation Regulations. (e) Fluid injection; Injection of water,' gas or other fluid into the affected pool or pools is permitted.. The rate, type and method '. of fluid injection will be established or altered by admin- fstrative approval of the Committee on request of the Unit Operator upon dem'onstratirlg justification therefore. (f) . Well Spacing: The spacing pattern may be altered from the .statutory. spacing by administrative approval of the Committee on request of the Unit Operator upon demonstration of justi- fication therefore. Page 5 (g) Termination or suspension of pressure maintenance project: The pressure maintenance project may be suspended or terminated as to any pool or pools by administrative approval of the Gommit~ee on request of the Unit Operator upon demonstration of justification for such suspension 'or termination. CONSERVATION FILE NO. 71 Union Oil Company of California, in a letter dated January 10, 1969, requested approval of a pressure maintenance program for the McArthur River Field. On January 27, 1969, a notice of public hearing was published in the Anchorage Daily News. This notice stated Union Oil Company of California's application and the motion of the Oil and Gas Conservation Committee to establish field rules in the McArthur River Field~ Testimony will now be heard on the application of Union Oil Company of California and on the following matters relating to the McArthur River Field: 1. Provision for administrative approval of expansion or contraction of the pressure maintenance project, drilling of additional wells, conversion of wells and other matters reasonably necessary to carry out the purposes of the project. 2. Establishment of area to be covered by field rules. 3. Establishment of pools. 4. Adoption of rules governing casing and cementing practices. 5. Adoption of rules governing reservoir pressure surveys. 6. Adoption of rules governing well spacing 7. Any other matters relevant to the development and operation of the pools. · McARTHUR RIVER FIELD TRADING BAY UNIT PRESSURE MAINTENANCE PROGRAM AND FIELD RULES CONSERVATION FILE NO. ?1 Public Hearing February 2?, 1969 IntroductiOn - Anderson: The McArthur River Field has now reached the stage where development .. cannot continue using the best conservation and engineering practices' .. to maximize the recovery of °il and gas, without the application of the proposed pressure maintenance project under field rules which will be presented here today. The McArthur"River Structure was discovered in October of 1965 by the Grayling lA well drilled from a drilling vessel on Union-M~rathon lease ADL 17594. This structure was confirmed in June of 1966 by the Pan American North Redoubt State ~1 well drilled from a floater on Pan Amer- ican et al ].ease ADL 17579. In August and September of that year the · Union Kustatan ~'IA well'drilled on lease ADZ 18729, the Atlantic Rich- . field West Foreland Unit ~3 well drilled on lease ADZ. 18777 and the Atlantic Richfield McArthur State ~1 well drilled on ADL 18772 further extended the accumulation of oil and gas on this structure. Two years ago today, February 27, 1967, the Commissioner of the Department of 'Natural Resources of the State of Alaska approved the Unit Agreement for the Development and Operation of the Trading Bay Unit Area, State of Alaska, as authorized by Alaska Statute 38.05. Said un.it Agreement was executed by Union Oil Company of California, as operator and ratified and joined by Marathon Oil Company, Atlantic Richfield Company, Page 2 Pan American Petroleum Corporation, Phillips Petroleum Company, Skelly Oil Company, Sinclair Oil & Gas Company, Standard Oil Company of Calif- ornia, and Shell Oil Comp. any. The Grayling, King Salmon and Dolly Varden Platforms were installed in the summer and fall of 1967. Development dril- ling began on the Grayling Platform in August of 1967, on the King Salmon Platform in October of 1967 and on the Dolly Varden Platform in December of 1967. As of today there are 42 wells completed and. 6 wells drilling within the Unit Area. Development drilling is continuing from the two rigs on each platform, with the G-16 and G-17 currently drilling from the Grayling Plat- form, the K-10 and K-15 drilling from the -King Salmon Platform and the D-14 and D-17 drilling from the Dolly Varden Platform. The current daily oil pro- duction from the Trading Bay Unit is approximately 80,000 bbls from the ... Hemlock Formation. The cumulative production from the Trading Bay Unit, McArthur River Field through January 1969 was approximately 25;'000,000, bbls of oil from which the State of A].aska has receiv~,d approximately $7,000,000 in royalty. The McArthur River Field development has now pro- gressed to the point that the Unit participants agree a pressure maintenance. project must be initiated to maximize t~e recovery of the re'source. Field rules should be established at this time to implement this pressure mainte- nance project. In order to maintain a complete record, let me read .the ap- plication for the proposed pressure maintenance program for the McArthur River Field into the record of this hearing. (READ) We submit the following , . proposed field rules for the Committee's consideration and approval. (R~.AD) Testimony in support of this application will now- be given by Mr. G. H. Laughbaum, ]'r., Acting Chairman of the Geologic Subcommittee of the Page 3 Trading Bay Unit and Mr. W. H. Elliott, Jr., Chairman of the Engineering and Planning Group of the Trading Bay Unit. Neither of these gentlemen have been qualified as expert witnesses in the State of Alaska. I would like to submit their qualifications at this time and it is reques'ted that after reviewing their individual qualificati, ons these gentlemen be established as expert witnesses. Mr. Laughbaum , Mr. Gra'ydon H. Laughbaum, Jr., is District Devel°pment Geologist for the Anchorage District, Western Region of Union Oil and Gas Division, Union Oil Company of California. In 1962 he received a BS in Geological Engineer- ing from the University of Oklahoma where he was a member of Tau Beta Pi, Sigma Tau, and Sigma Gamma Epsilon honorary societies. In addition he has. completed graduate courses in engineering and geology at the Universit~ of California at Los Angeles. fie worked as a reservoir engineering trainee for Atlantic Richfield' in 1962, leaving that comPany for mi. litary service. In 1964, he was employed by Union Oil Company of California. For two years he engaged in surface and subsurface work in California, including explora- tion and development of offshore areas..Since arriving in Alaska in ].96.6, his work' has been concerned primarily with the geology of the Cook Inlet Basin to include subsurface studies of the Kenai Gas Field, Beaver Creek Gas Field, Tradin, g Bay Field, McArthur River Field, and the Granite Point Field. He became District DeVelopment Geologist, Anchorage District, in March 1968.. W. H. ELLIOTT, JR. QUALIFICATIONS FOR EXPERT WITNESS - STATE OF ALASKA February 27, 1969 Mr. W. H. Elliott~ Jr. is Chairman of the Engineering & Planning Group for the Trading Bay Unit and a Senior Petroleum Engineer for Marathon Oil Company~ Los Angeles Division, Anchorage District. In 1951~ Mr. Elliott received a B.S. degree in Petroleum Engineering from the University of Oklahoma~ where he was a men, er of Tau Beta Pi~ Sigma Gamma Epsilon and other honorary fraternities. He was employed by Marathon Oil Company (then the Ohio Oil cOmPany) upon graduation and worked as an engineering trainee~ drilling engineer and production engineer in Kansas and Otalahoma. He became District Reservoir Engineering Supervisor in Chickasha, Oklahoma during 1956 a.ndDivision RSservoir Engineering Supervisor in Los Angeles, California during 1960. On January 1, 1968, he assumed the full time duties as Chairman of the TradingBay Unit Engineering & Planning Group. During the five years, 1963 throu.gh 1967, Mr. Elliott was a member of the Conservation Committee ..o'f California Oil Producers and Chairman of District 3. He served on the Engineering Board for the Committee during , 1965 and Was Chairman during 1966. In 1967, he was elected to the Executive Committee. Mr. E!liott has been engaged in Unit operations in Oklahoma, California and Alaska invOlving, at Yarious times~ primary recovery, secondary recovery, pressure maintenance, water injection, gas injection and miscible displacement. He has worked since 1960 on engineering aspects of Alaska Fields including the Kenai Gas Field, the Swanson RiYer Field~ the Trading Bay Field and the McArthur River Field. He was a lecturer on miscible displacement for the Society of Petroleum Engineers Refresher C0urse~in Los Angeles~ Ventura and Bakersfield~ California. He is a registered professional engineer in the State of Oklahoma. He is a member of the Society of Petroleum Engineers of AIME and the API SubCOmmittee on Reserves and producing Capacity for Alaska. Closing Statement - Anderson Mr. Chairman, with your permission I would like to make a brief closing statement. The participants, Trading Bay Unit, have presente'd testimony here today in support of a program of pressure maintenance and field rules necessary to implement this program. This testimony is the culmin- ation of extensive engineering and geological study of the Hemlock Pool using the most sophisticated techniques available. The studies were con- ducted by technical experts of eight (8) major oil companies working toward a common goal - to maximize the ultimate recovery of hydrocarbons from the Unit area, Two years from the day the Trading Bay Unit was approved by the Commissioner · of Natural Resources, 20 months from the setting of the first Unit platform, . 16 months after the completion of the first producing Unit we].], and the production of 25,000,000 barrels of oil, t~e Unit Participants are prepared 'to commence an extensive pressure maintenance project. A project Which our testimony indicates with minimum response will approximately double · the ultimate realization to the State of Alaska from the Hemlock Pool. As this project progresses it may be necessary to vary well spacing within . portions of the field, convert injection or production wells, alter the type or method of fluid injection, or expand the project to other pools which may be established within the field. Page 2 Clos ing Statement We believe the Alaska Statutes and the Oil and Gas ConservStion Regulations were designed to give your Committee the authority to · grant an Operator the flexibility required to develop each field according to the best geological and engineering data available, INe have, we 'believe, presented to you sound geological and engineering data to prove it is imperative the proposed pressure maintenance project and implementing fie!d rules be approved as soon as possible to assure maximum efficient development and to prevent waste of our natural resource. Thank you for your Consideration.
