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Home My WebLink AboutCO 060Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning process. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. (~ ~-,,~ Conservation Order Category Identifier Organizing RESCAN [] Color items: [] ~yscale items: ~Poor Quality Originals: [] Other: NOTES: DIGITAL DATA OVERSIZE~ ' ~nnablewith large -° ~.,..-,' ~r~)-o [] Diskettes, No. ~ [] Other, No/Type [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) p'""~Logs of various kinds [] Other BY: '~ARIA _ Scanning Preparation BY: MARIA Production Scanning Stage1 PAGE COUNT FROM SCANNED DOCUMENT: )1 (~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: ..~ YES NO BY: Stage 2 ~si IF NO ~N STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: YES ~ NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALITY, GRAYSCALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd ATTACHMENT A-1 FEB 5 1968 -- DEPAR~,'~ENT OF NA~IL RESOURCES DivISiON OF MINES AND H!NE~S ' Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: THE APPLICATION OF PAN .~IERICAN PETROLEUM ) CORPO~kTION for appropriate field rules in the ) Granite Point Field authorizing fluid injection ) . for secondary recovery puz-poses and authoriZing ) the drilling of an injection well or wells ) along the co~on 'boundary between the Mobil- .) Union lease and the Pan ~L~erican et al leases. ) Conservation Order "~' Janua~'y 19,~o$ ~ o,' A,...,. E.~R_NG TI~T: 1. The Pan .%marican Petroleum Corocration submi:ted an application dated December 1, 1967, for field rules authorizing fluid injection and the drilling of boundary line injecnion wells,' expanding uoon I4obil Oil Corporation's application dated November 27, 1967. 2. Notice of the hearing was published in the Anchorage. Daily News on December 11, 1967. 3. A waiver of personal service was received from each of the affected parties. ..: 4. A public hearing ~;as held in the City Council Chambers of the Z. J. Loussac Library on December 21, 1967. 'Pan American Petroleum Corporation presented evidence and rezuested the testimony from the hearing of Mobil Oil Corporation's'application for greater v~ell densizy and field rules in the Granite Poinn Field, Conservation File #59, be entered as evidence. ~Iobil Oil Corpo:ation .protested the requirement of drilling injection wells along the com:non boundary prior to the drilling of development wells on closer spacing. 5. Pan American Petroleum Corporation withdre'~ the portion of. the application for the requirement to drill an injection well or wells along the common boundary. AND IT FURTHER APPEARING THAT evidence presented indicates the initiation of fluid injection tests to obtain data is necessary to determine the feasibility of a fieldwide injection p~ogram. CONSERVATION Page 2 January 19, 1968 NOW, THEREFORE, IT IS ORDERED that Pan American Petroleum Cor,~oration and >,*obi! Oil Corporation, operators in the Granite Point Field, may each begin fluid injection tests in the Middle Keuai Pool in a :,,ell of their choice to acquire data for a poasibie funura secondary recovery program. Prier to injection, the Oil and Gas Conse~-'vation Committee is to be notified as to the well selected by each opez*ator. The results of the tests will be reported to the Oil and Gas Conservation Committee. AdminiStrative approval and proof~ of notification of all ~ffacted parties *,...'ill be requi~-ed before injectivity tests can be commenced in v~ells other than the initial wells. DONE at Anchorage, College, and Juneau, Alaska, and dated January 19, 1968. Tho'mas R. ~.[a~h~t!. ~ .... _, Jr., Execu'aive Secretary Alaska Oil and Gas Conservation Commitnee Jam?-,s ..%. ~7!illiams, Cl',air,~an Alaska 011 and Gas Conservation Dale 'WeLlington, },'fe',nbe~~? Alaska Oil -and Gas Conservation Committee Alaska 0il a!lld Gas Conservation Co~.:mi[tce , Harry W. KUglar, .~,~embar Alaska Oil and Gas Conservation Committee C,~. ~g~ UIC PERMIT APPLICATION GRANITE POINT STATE LEASE, GRANITE POINT FIELD COOK INLET, ALASKA UNION OIL COMPANY OF CALIFORNIA' i. , RECEIVED JUN 2 7 ]98,5 Alaska C~; & 5~s ~;~ ........... ;:'ssJon Anchorage Union Oil and Gas Division: Western Region Union Oil Company of California P.O. Box 6247, Anchorage, Alaska 99502 Telephone: (907) 276-7600 G. A. Graham District Operations Manager Alaska District Dear Mr. 0patz: unl,on June 21, 1985 Mr. Gerald Opatz Environmental Protection Agency Region X 1200 Sixth Avenue Seattle, WA 98101 UIC AREA PERMIT APPLICATION; GRANITE POINT STATE LEASE, GRANITE POINT FIELD Enclosed is a complete Underground Injection Control Area Permit Application for all Class II, Type 'R', Enhanced Recovery Wells within the Granite Point Field. Union Oil Company of California is sole operator for the Granite Point Field, and as such, will be responsible for obtaining all UIC Permits within the Granite Point Field. Union Oil Company requests an area permit allowing us to add injection wells as needed. In the event'a delay in issuance of an area wide permit occurs, individual emergency permits will be requested under 40 CFR 144.34 (a)(3). A significant delay in the production of crude oil will occur unless the emergency permits are issued. Attachment C-1 contains data on all wells within the boundaries applicable to this permit. A list of injection wells currently in operation may be found in Attachment H-2. The described injection activities within the Granite Point State Lease boundaries do not occur into, through, or above an underground source of drinking water. Union Oil Company, as allowed by 40 CFR 144.16(a), requests a waiver of the ERA requirements for area of review, construction, mechanical integrity, operation, monitoring, and reporting. All wells within the Granite Point Field have been constructed and are being operated in accordance with Alaska Oil and Gas Conservation Commission regulations. Attachment A-1 and A-2 contain applicable AOGCC regulation. Your immediate action to this application will be greatly appreciated. If there are any questions or need of assistance, do not hesitate to contact Larry Cutting or Candy Lockwood at (907) 276-7~00. Very truly yours, Gerry A. Graham cc: Harold Scott - EPA, Seattle, WA C.V. Chatterton - AOGCC, Anchorage, AK I PA u~cI ~-orrn ~pproveo. [Jnn~ r~o. ,'u4u-u~e z. ~ xplres , T/A UNITED STATES ENVIRONMENTAL PROTECTION AGENCY UNDERGROUND INJECTION CONTROL PERMIT APPLICATION (Collected under the authority of the Safe Drinking Water ,4ct, Sections 1421, 1422, 40 CFR 144/ RE,4D ,4 TT,4CHED INSTRUCTIONS BEFORE STARTING FOR OFFICIAL USE ONLY Ac~ir~ti~ ~'~:1 Date Received mo day year mo day year Permit/Well Number Comments II. FACILITY NAME AND ADDRESS Facility Name Granite Point Field~ Granite Point Platform Street Address Cook Inlet City ZIP Code Kenai Peninsula Boro, IV. OWNERSHIP STATUS (Mark 'x') [-'1A. Federal J'~ B. State r"] c. Private [-1 D. Public [] E. Other (Explain) II1. OWNER/OPERATOR AND ADDRESS Owner/Operator Name Union 0il Company of California Street Addre~ 909 W. 9th Avenue, P.O. Box 6247 City Anch V. SIC CODES ZIP C.od~ 99502 1311 (Crude, Petroleum Natura! Gas) r-] B. Modification/Conversion r"J c. Proposed VII. TYPE OF PERMIT REQUESTED (Mark 'x' and specify if required) Number of Exist- I Number of Pro- ['"] A. Individual ~ B. Area lng wells posed wells I 4 Act1 ve - Name{s) of field(s) or project(s) Granite Point Field VIII. CLASS AND TYPE OF WELL (see reverse) A. Class(es) B. Type{s) l C. If class is "other" or type is code 'x,' explain (enter cede{s)) (enter code{si) ~ · I D. Number of wells per type (if area permit) R-4 B. Longitude n-1 Yes J~J No Xl. ATTACHMENTS (Complete the following questions on a separate sheet(s) and number accordingly; see instructions) FOR CLASSES I, II, III (and other'classes) complete and submit on separate sheet(s) Attachments A m U (pp 2-6) as appropriate. Attach maps where required. List attachments by letter which are applicable and are included with your application: I certify under the penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of ~ those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. (Ref. 40 CFR 144.32) A. Name and Title (Type or Print) Gerry A. Graham, District Operations Manager- Alaska C. Signature EPA Form 7520-~ (2-84) B. Phone No. (,4rea Code and No.) (907) D. Date Signed Introduction This application is for an Area Rermit for all Class II, Type "R" Enhanced Recovery Injection Wells within the Granite Roint Field, Granite Roint State Lease, Cook Inlet, Alaska. Injection activities within the Granite Point Field do not occur into, through, or above an underground source of drinking water. 40 CFR 144.16 (a) allows for less stringent requirements applicable to this permit's area of review. The underground water within the confines of the Trading Bay Unit, and one quarter mile beyond, are exempted aquifers for Class II activity as allowed by 40 CFR 147.102 Aquifer Exemptions, (b)(2)(A). 40 CFR 144.33 requires the area permit application to describe and identify by location existing injection wells; however, the application may use a single description of wells with substantially the same characteristics. Such description may be found in Attachment H-2. All injection wells located within the boundaries of the Granite Roint Field are operated by Union Oil Company of California. Union Oil Company of California requests authorization to construct, operate, convert, and plug and abandon injection wells within the boundaries of the Granite Roint State Lease. All future injection wells proposed will meet the criteria described within this area permit. Injection activities within the Granite Roint Field are in compliance with Alaska Oil and Gas Regulations, and will continue to operate in compliance with said regulations and orders. Following are required attachments for Class II activity within the area of review. List of Attachments Attachment A: Area of Review Attachment A-1 Attachment A-2 Attachment A-3 AOGCC Order #60 AOGCC Regulations Legal Description of Area of Review Attachment B: Well Map - Area of Review Map #1 Facilities, Wells and Area of Review Attachment C: Corrective Action Plan and Well Data Attachment C-1 Well Data Attachment D/E: Underground Sources of Drinking Water Attachment D/E-1 40 CFR 147.102, Aquifer Exemptions Attachment F/G: Geology Attachment F/G-1 Geological Report on Injection Zones and Confining Zones (Class II) Attachment H: Operating Data Attachment H-1 Attachment H-2 Analysis of Injection Fluids Operating Data for Injectors Attachment I: Formation Testing Attachment J: Stimulation Program Attachment K: Injection Procedures Attachment K-1 Waterflood Schematic - Granite Point Platform Attachment L/M: Construction Procedures and Details Attachment L/N-1 Typical Drilling Program for the Granite Point Field Attachment L/M-2 Typical Drilling Procedure for the Granite Point Field Attachment L/M-3 (A) Injector Well Schematic Example Attachment L/M-4 Blank Completion Report Attachment O: Plan for Well Failures Attachment R: Monitoring. Program Attachment Q: Plugging and Abandonment Plan Attachment Q-1 Attachment ~-2 Schematic Plugged Nell Example Sample Abandonment Report Attachment R: Financial Resources Attachment R-1 Financial Assurance Bond Attachment S: .Aquifer Exemptions Attachment T: Existing ERA Permits Attachment U: Description of Business ATTACHMENT A AREA OF REVIEW Union Oil Company of California requests a waiver of the review requirement of 40 CFR 14~.0~ as allowed by 40 CFR 144.1~ (a). Union Oil Company of California will use an area extending 1/4 mile circumscribing the Granite Roint State boundary. Attachment A-1 is a copy of the Alaska Oil and Gas Conservation Commission Order 60, applicable to the Granite Roint Field. Attachment A-2 is a copy of the Alaska Oil and Gas Conservation Commission Regulations. Attachment A-3 is a description of the legal boundary which is the area of review for this permit application. -',: i . . ~_ " , " .'~i~"tt~ ':'J;'~':":';4';{-:.i~!!~P~.t:!:i:.~'::;:i'1-??"?~,';-".:': STATE OF ALASKA ' '.'~?'?:":'~' ::.'..t:': %'..:".'"17~'. ~~.': ;. t~s~ .. ....... . ~ . ..,- ... i: ~~ ' ''~'''ALASKA OIL~AND GAS CONSERVATION ..... . ~t. ~ ~ .~ :~;,, ...... . .... ~ . ~ ..... . . . .... -:~'.'.~.: , . ........... , ................ . .......... .... . .... , ................ ,,. .... . ......... .,. , . · ...... .,.,.:.,. ,,.. .. · OMMISSiON . . ................. .. .... · .. ' .~-.~- ~'~ t~,,~ ~',~'~:',- -. :', ..,.:.~,,~ _~'~L~ At ,-;-~. -~-, ~; '.;'~:, ~'k~.-.:~(~-;~,?:. ~h ~'.-:~.v. ~',, 'v~..~' ~.,-,',. - 2 "". f~'- "' ' '' ......... ~= ' ' ' ~'~ ~ '4~-~,X'* ......... ' ....... ' ~ .... ' · '"" '.' 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'~: B ,~C~ ~~,~-f.'~ [ '~;~'~'~gt~ '. "' ..... J'~'.'... '. , ' .... ?~. '" '"' .' '.. ' , "'2 · . ' , ~.', · -.. · ~..,~. .?~.. _~...-,-'. ,' ..... '.*~'~ · . .' '..... ':.' .;, .' .~¥.~.' .:...- :-' :':"'~'.'.~... -.."..~." i_~~~, ~~ ,',~: ..:'.',.',.,'.,':~.,. ..... '..,...'.,',,-,-.' · w,~.. ~,......,. ~;, ~;....., ' .,,, .. '.~ .. :, ..... ~.'.,~-.~..-' .~' ,,,~ '.,-;;'...'..;~ ,~.' .'. - . '~'" · . ~ "~ .' '~ ' '.~' "'" "~'~.".'"'~ .' ' '' '' ' " ~-r~% '~-" ' ~1 ~1 ~1/ ~ ~ " '''.' "' ' ".~.' .... ~. " ' '. · '.,''. , , .',~'~*~,'~ ' "- "' .'. '- ..... ~;.':".."'?;',...".'" ~:,,..~,'.~:'. '. ~ '.~, ..... '~.t;" ~ ~1 /~/ .... .'~'; ..'~.',.,-' , ':-. ~ .'- '...~'..'., ' .~., ,. . .... ,. ...... ..,.... .... . .... . ..... ,.. ..... . .... .. ... ~ '* .,,~. ~*~. ., · ~ .:.. · ...~ · ...,, . . · . . . ·. ,. ~ , . ', . .. ~'. · ~... . - .... .. ~.... ,......., ../...". ..... · -~~~/ ..:; ?~.,'; ,. :..,. , .:~ . .,.. , ..~' ..... ~.... .;~ ~-~ ' ' ' . ..... ' ' ' '. .' ',~ ~!~,. ~ ~'~ ,',?..... ' ~,.~ , ". ~.''' ' .- ." · ,..' ','",~. . '~ ~. ', ', ' ~ ,~~", ' . ~.. ,e'~'. ~ , .~ .,~', . .~, · ~.t ·~ ~,~,.~..~; · · , ; ,.~ , ..... ~ · . . . ..:~, .-~ ~. . ,.. , .~ · . . .... ..... .. . . .. ,:. ,.:... ...., ' · ' ~'~'''. '".' '~ ~ ~.'""..'.,.'" ;~.~ ~'.'. * ~';~' ~ · ~'~' ' '''.'~'' '' .... ~''~.'.'i- .. · ....;, , ',:'~ , . ' ..... ,.. . .. .' .,. ,'.~. ,~ ',,,'~...:.. .'. .._' .,,-.,......~ .-.-.'...., ;~.. . ,-' ~ ..~.,, , . .. . · .~ ., '. ,..'. . ... .~ .... e .'.. TABLE OF CONTENTS ARTICLE 1..DRILLING · "Section 05. 10. 15. 20. -25. 26. 30. 35. 40. 45. 50. 55. 61. , .65. 70. 75, . . Permit to drill .. ............. , ............... Reentry drilling permit Changes to ................. Change of operator .. .... ...... .... .. ....... . .... Bonding ............., .......................... Claims .... . ..... ....... ................ , ....... Casing and cementing ........... .......... ...... Blowout pre~vention equipment ....~.., ............ Well identification . .......................... Sealing off strata '. ...... . ..................... Deviation ....,:. ..... .... ........ : ............... i g Well spec n ........ .,..,.............,. .... i ys '''''' '' ' Well s te.surve . ..... . .... . ....... Hydrogen sulfide .......... ..................... Records and reports ............................ Other wells in designated areas .. ....... .., .... Section ARTICLE 2. · , ABANDONMENT AND PLUGGING 105, '-'Abandonment and plugging requirements and notices .......... . .... . .............. 120 11 ab d nt k ~ ~ ' ~ , We an onme mar er ... ,... ........... 140. Water wells ......... ............. ... .......... 170 Locati cleanup ' ~ ' . on **o**e**** ******o****oo.e**** ARTICLE 3. PRODUCTION PRACTICES Section 200. 205'. 210. 215. 225. 230. 235. 240. 245. 250. 255. 260. 265. 270. Surface equipment ........................ Notification of accidental loss o~ ~i~ ~r gas [ Multiple completion of wells .................. Commingling of production ....... Capacity ,of gas wells ........... Production measurement .......... Gas utilization .... . .... . ....... .. Gas-oil ratios ..,... ......... Common production faci~tie~ .... Disposal of salt water and other Equitable distribution of production .~........ Illegal production ......... . ........ . ......... Automatic shut-in equipment ................... Bottom hole pressures .,.. ........... ,..... .... '2';';; .... wastes . ...... Page No. 1 3 3 3 3 4 4 6 8 9 9 12 13 13 14 14 15 17 17 19 19 20 20 20 20 22 22 22 23 23 23 23 24 ARTICLE 4. REPORTS Section 300. 310. 320. Request for addition information .............. Books and records Forms to he used .............................. ARTICLE 5. 'ADDITIONAL RECOVERY METHODS Section . ~ ~ ~' · · 400. Application for 'additional recovery., ......... 410. Injection wells .................... 430. Records and repo · . .......... Section ARTICLE 6. ,. GENERAL PROVISIONS 505. 510. 515. 520 .. 525. 526. 530. 536. 537. 538. 540. 545. 550. 555. 557. 570. Scope of re l~t"ions ................... Commission office, hours U.S. Government leases ............... Field and pool regulation a~ ~lassi~icati~A Forms upon request ............................ Fire hazard ......................... Cooperation with o[h~ ~tie; Geologic data and logs' . ....................... Public and confidental well 'information ....... Naming of fields and pools .--Hearings ......... Oaths ..... ~ .............. Orders Subpoenas ' Definitio ' eeeeee*eeeee.eee.eeee e~eeeeeeeeeeee~eeeeee eeeeeee-eeeeeeeeeeeee Page No. 24 24 24 25 26 26 27 27 28 28 29 29 29 29 30 31 31 32 33 33 33, '33 · Register 74, July 1980 MISCELLANEOUS BOASDS, ~SSSI©NS 20 AAC 25.005 TITLE 20. MISCELLANEOUS BOARDS, COMMISSIONS CHAP.TER 25. ALASKA OIL AND GAS CONSERVATION COMMISSION '. Editors Note: . .. · ~!This chapter is based on' the former regulations of the Divi- ...."~':""'"'.. sion of Oil and Gas Conservation formerly located in 11 AAC ':'":'~ ' ' ' .22 · · °'~ ~ · - · Article .: 1. Drilling (20 AAC 25.005 -- 20 AAC 25.075) - 2. Abandonment and Plugging (20 AAC 25.105 -- 20 AAC 25.170) 3. '' Production Practices (20 AAC 25.200 -- 20 AAC 25.270) 4. Reports (20 AAC 2.5.300 -- 20 AAC 25.320) 5. Additional Recovery Methods [20 AAC 25.400 -- 20 AAC 25.430) 6. Genera,~. Provisions (20 AAC 25.505 -- 20 AAC 25.570) ARTICLE 1. DRILLING. : ... Section ,. .. 05. Permit to drill 10. Re-entry 15. Changes tO drilling permit 20. Change of operator 25. Bonding 26. Claims 30. Casing and cementing 35. Blowout prevention equipment 40. Well identification 45. Sealing off strata 50. Deviation 55. Well spacing 61. Well site surveys 65. Hydrogen sulfide 70. Records and reports 75. Other wells in designated areas 20 AAC 25.005. PERMIT TO DRILL. (a} An application for a Permit to Drill (Form 10-401) must be submitted for approval before the drilling,, redrilling or deepening of the 'follo%~ing types of wells ' · (1) exploratory wells; (2) development Wells; (3) service wells; and (4) stratigraphic test wells. (b) An application for a Permit to Drill (Form 10-401) must be submitted for approval before the re-entry of an abandoned wel 1. -1- Register 74, July 1980 MISCELLANEOUS BORADS, O2~,D~SSIO~]S · . 20 AAC 25.005 .(ci The application, for a Permit to Drill must be accompa- nied by' the followihg (1) . a: fee of. ~$100 payable to the State of Alaska, De,ar'truant 'of Revenue; (2) a plat showin~ the proposed surface and bottom hole location; before the com. pletion, suspension, or abandonment ....of the well, a survey plat certified by a registered land survey- · or showing the precise surface location must be submitted; only the first well drilled from a fixed platform or a multiple well site must have a cer'tified survey; (3) a diagram and description of the BOP equipment to be used and the information required in sec. 35(c)(2) of this · chapter; · ~ (4) the complete proposed casing and cementing program as required in sec.. 30 of this chapter; and (5) a diagram and description of the diverter system to be used as specified in sec. 35(~) of this chapter, unless this requirement is w..a~ived by the commission. (d) Any well which is not to be intentionally deviated must meet the requirements of sec. 50(a) of this chapter. (e) Any well which is to be intentionally deviated must meet the requirements of sec. 50(b) and (c) of this chapter. (f) Each offshore location must meet the requirements of sec. 61 of this chapter. (gT" Each hole drilled 'below the conductor casing, unless drilled solely to straighten the original hole, sidetrack junk, or correct mechanical difficulties, is a separate 'well requiring a Permit to Drill. (h) Each lease must have a different and distinct name. (i) Information must be submitted regarding the ~ond as re- quired in sec. 25 of this chapter. (j) After approval by the commission, the Permit to Drill (Form 10-401) may be referred to as the "drilling permit" in this chapter. · ,, ~ (k) If dril.ling is not commenced within 24 months after the approval date, the drilling permit will expire~ (Elf. 4/13/80, Reg. 74 ) Authority: AS 31.05.030 AS 31.05. 090 -2- Register 74, July 1980 M/SCELLANEOUS BORADS, CC~ISSI©~S 20 AAC 25.010 20 AAC 25.025 .. 20 AAC 25.010. RE-ENTRY. (a) If a suspended well i°s to be re-entered, the operator shal 1 advise the commission and request approval on the form entitled Sundry Notices and Reports on Wells (Form 10-403). (b) If an abandoned well is to be re-entered, an applica- tion for a Permit to Drill (Form 10-401) must be submittad as required by sec. 5(b) of this chapter. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.015. CHANGES TO DRILLING PERMIT. (a) For any proposed change in a drilling permit, before the start of drill- ing operations, an operator must comply witk the follo%~ing '(1) notify .the commission of the prop'osed change; (2) a new application for. a Permit to Drill (Form 10-401) may be required but no additional fee is required; (3) a revised plat as required by sec. 5 of this chapter must be filed if the surface location is changed; and : . . (4) be approved by the commission. (b) For any proposed change, in a drilling permit, after drilling operation~ have started, an operator must comply with the following (1) to change the bottom hole location, a new Form 10-401 accompanied by a fee of $100 must .be submitted to the commission for approval; and (2) requests for other changes must be sukmitted to the commission for approval on the form entitled Sundry Notices and Reports on Wells (Form 10-403); in cases where prompt approv- al is needed, verbal approval may be obtained from the commission or its representative; if verbal approval i's obtained, a descrip- t_ion of the approved change, the .name of the commission member or its representative that provided verbal approval, and the date of the approval must be included on the Form 10-403 submitted. (Elf. 4/13/80, Reg. 74 ) Authority: AS 31.05.090 20 AAC 25.020. CHANGE OF OPERATOR. If an operator wishes to.~relinquish his role as operator, he shall submit a written statement to the commission setting forth the facts, designating the new operator, and requesting approval by the commission. ' The newly designated operator shall notify the commission in writing of his acceptance of the obligations as operator and shall fur- nish a bond as provided for in sec. 25 of this chapter. Approval by the commission of the change constitutes the release of the former operator's bonding obligation. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.025. BONDING. (a) Except as other%~ise provided in this section, the commission will require from the operator an .appropriate bond to insure that each well is abandoned or repair- ed in accordance with secs. 45, 105, 120, 140, and 170 of this chapter. ~ .... ~ r,~'~ ~.. ~..~_ r~~- ~'~i~ ~r~':~:.;~ -:~" ;23 -~;~' a si~lp'~l o~ .~'~r. ~s= ,,-an ~' ,; .,~., ,'." .. ~.~..-' ' ;' ... "' '" ' .............. va.~Sh %'~"~~0~ za~er cz ,~ge ~T~s~ on.-~, gas cons ......... .~ B~~ noe zn ~vor off the commission ECDn~ .nLus~ rem'~a~. ~n_ ro,rce .and. ~rre.cr urtt_l) the aban- ~n'~'~% ~,.,. ~,~ ..~.s c~ ',',. :.',.~':. ~ ~,. ~. :.. '.'.~ ..,. ~ .__ .., a~'l we'l~s cg~ereo are approved ~ ~ne c°mmission and 'the '~n~ ~s re'leased ~y ~he commission. Wit% t'h'& aommi~i6'n. {Sff. ,''~uth~ri~': A'S 31.05.030 20 ~C ~5'.~26., ~."AT~fS: , .CRmm%.ssx.on . approval. .of the aban- donment'of ~ '~e-l~ 'a'nd ~'~e; t~-~-g~ b~ %h]~.Sbfld, .r~duired by sec. ment, "but ~'9~s~'ngt ~i~'~..~n_'~'r~.tb~. b~ .~br~h~r .claim by the commission &f'~eY the a~And~6nment% '(Z~% ~.'/~3~0~. ]Regz.74) ~% th'or i%y] ~ 31.05.030 , ~0 ~AC. ~'S%'Q~.0L_..~C~~ ~ _'CEME~.TINQi. , (~]... r~k each type of well ~:~'~ ~n. ~t~L s'Cit 'or anA~ ah~pa&~',.a, c6m~l~te prooosed · ' . ~:'; ,'~' '"~' '. ~ ''~.J''.f ..:.; '.L.'., '' --.}, '- ' ' .' . - . · ' · casmng and ceme~t~.~rogram mus~.,~ znc]uded on.the applmcatmon for the P~~t to. brlfl (FO~m. 10-46111 ~ Udl&ss bodified or alter- ~ ~rbV~suz~able an~ -'.a :.~,.. sa~oper~i~ cg~ditioJs for · · -,' ,~." :~..~ ~ .... ~(:~'c, · - ~he ~6~al ~easured~dept~.proposed:. (3) p~even~ m~gra~on of flgld~ from ohe stratum to another} (~) a~'~ re ~bn trbI ..o.f Qbll pressures encountered; .(5~ ~ protege' ..... c ....... .,..~rom tha{¢ subsidence and freezeback ich ~ ~rat~ bearing fresh- water~ and,~ ~,,.,.:. , , . , ..... ... . .~.- ' ' ~7)~ D~i~&,.,Q~I,_ a6h.~. 65~iI :t. he ne~t. string of casin~ )~ ~t}~.i.~~h~E f~dtd~ fd~ ~1 control should be ~ .:," L,.,~ '.'~. , :'.i ....... ' . ,,, .... , . considered; [heiud~Qg~ fprma~lDn ~ra~ture...grad:ents, formaticn pressure~; '""' :' "" '-':" '~'"" ........ ' ' C~id~ ~etElHg d&pt~s, and prbp6sed total depth. (b) T~e ~~:~' """'~ ...... ' O~..re~irem~h[~ ~:~I'~' to th~ different types of casing ~i~ l~f6d b~Iow: Register 74, July 1980 MISCELLANEOUS BOARDS, CE6~SSI©NS .20 AAC 25.030 (1) Conductor casing: (A) one or more strings may be required; and (B) this casing may be set by drilling, driving ~ or jetting; if the hole is drilled, a sufficient quantity of cement must be used to fill the annular space to the surface or mud line. (2) Surface casing: (A) setting depth must be below the base of freshwater sands or below the base of permafrost at a depth that will insure good anchorage; (B) must be set into a competent stratum with sufficient cement in the annulus to circulate to the sur- face; if offshore, sufficient cement must be used to bring the top of cement either to the mud line or to at least 1500 feet above the surface casing shoe and at least 200 feet inside the conductor casing; if c~ment does not circulate to the surface wheh 'required, -the annulus must be cemented before drilling ahead or initiating tests; and (C) after drilling approximately 50 feet of new formation, a pressure test must be obtained either by test- ing to formation leak-off or by testing to a predetermined. equivalent mud weight to aid in determining a formation fracture gradient; the results of this test and any subse- quent tests of the formation must be recorded on the driller's log. (3) Intermediate casing: (A) must be set when required to maintain well control; (B) under normal conditions drilling may continue until the mud weight has been increased to a point not exceeding 0.5 pounds per gallon less than the equivalent mud weight of the most recent' pressure test of the formation below the surface casing shoe; and (C) a sufficient quantity of cement must be used to provide annular fill-up to a minimum of 500 feet above all hydrocarbon zones and abnormal pressure intervals; in cases where zonal coverage is not required, a minimum fillup of 500 feet of cement above the casing shoe is required. (4) Production casing: (A) may be set through or just above the produc- tion interval; (B) cementing practices must be the same as ~that for intermediate casing strings; and (C) casing must be tested in accordance .with (e) of this section. (5) Liners: (A) may be set as an intermediate or production string; (B) a cemented liner must have a minimum of 100 feet of cemented lap with the next larger casing string; other cementing practices must be the same as that for intermediate casing; and Register 74, jUly 1980 MIS~SrANEOUS BOAPDS, CC~v~SSIONS 20 AAC 25.030 20 AAC 25.035 (C) before drilling ahead, cemented liner and lap must be tested by a fluid entry or pressure test, in accord- ance with (e) of this section, to determine that a seal between the liner top and next larger string has been - achieved; the test must be recorded as required by sec. 70(a) (1) of this chapter. (c) A cement plug or shoe, in the casing strings required by (b) of this section, must not be drilled until a .... minimum compressive strength of 300 psig at bottom hole conditions has been attained according to the manufacturer's cement strength tables for the particular cement being used. Casing must be tested before drilling ahead in accordance with (e) of this section. .. (d) Within permafrost intervals, fluids which have a freez- ing point above the minimum permafrost temperature must not be left in the annulus between any two strings of pipe or inside the casing upon completion. or suspension of a well without commission approval. (e) Pressure Testing of Casin~ and Surveys: t. (I) with the exception of the conductor casing, before drilling out the casing or liner after cementing, all casing strings, liners and liner laps must be'tested to a surface pres- sure of 50 percent of the minimum internal yield strength of the casing or 1500 psig, whichever is lower. If the pressure de- clines more than 10 percent in 30 minutes, Or if there are indi- cations'~of improper cementing such as lost returns, cement chan- neling or mechanical failure of .equipment, corrective measures must be taken until a satisfactory test is obtained; and (2) the operator shall report on the form entitled the -Monthly Report of Drilling and .Workover Operations (Form 1~7404) the test results and any remedial measures taken. (f) Variances to this section to allow for special or unusual conditions 'such as cable tool drilling, air or foam drilling, will, in' the commission's discretion, be approved by the commission upon request by the operator. (Elf. 4/13/80~, Reg. 74) Authority: AS 31.05.030' 20 AAC 25.03~$. BLOWOUT PREVENTION EQUIPMENT. (a) General Practice (1) BOP equipment' and its Use must, as a minimum, be in accordance with American Petroleum Institute Recommended Practices 53, "Blowout Prevention Equipment Systems" except as modified by this section; (2) all equipment must be in good Operating condition at all times and must be adequately protected to insure reliable operation under the range of weather conditions expected at the specific location; and --6-- Register 77, April 1981 HISCELIANEOUS BOARDS, C~.~IISSI©NS 2'0 AAC 25.035 (3) blind rams must' be function tested each trip but not more than once each day and'all other BOP's must be function tested each. day. (b) Surface Hole Diverter System: (1) before drilling below the conductor string, at least one remotely controlled annular preventer and flow diverter system must be installed; the annular preventer must permit the diversion of hydrocarbons and other fluids; the low Pressure, high capacity diverter system must provide at least the equiva- lent of a six-inch .line with at least two lines venting in di'f- 'ferent directions to insure safe downwind diversion and must be_ designed to avoid freezeup; these lines must be equipped with full-opening butterfly type valves or other valves approved by the commission; a sChematic diagram, list of equipment, and operational procedure for the diverter system must be subr-~tted for approval with the application for a Permit to Drill (Form 10-401); and .. (2) the commiss{on will, in its discretion, waive the requirements of (1) of this subsection wher'e drilling experience in the near vicinity indicates they are unnecessary. · .. (c) Blowout Prevention .Equipment:' (1) before drilling below the surface .casing, and until completed, a well must have remotely controlled'BOP's; the working pressure of the BOP's and associated equipment must exceed the maximum potential surface pressure, except that the annular preventer need not have a working pressure rating greater than 5000 psig; the BOP stack arrangements must be as follows: (A) API 2M, 3M, and.5M stacks must have at least three preventers, i. ncluding one equipped with pipe rams that fit the size of drill pipe, tubing, or casing being used, one with blind rams, and one annular type; (B) API 10M and 15M stacks must have at least four preventers, including two equipped with pipe rams %.;ith at least one fitting' each size of drill pipe, tubing, or casing being used, one 'with blind rams. and one annular type; (2) information submitted with Form 10-401 must in- clude the maximum downhole pressures which may be encountered, the maximum potential surface pressures, the criteria used to determine, these pressures, and a well-control procedure which indicates how the preventers will be used for pressure control operations if the maximum surface pressures should exceed, the rated working pressure of the annular preventer; (3) the hydraulic actuating system used must provide sufficient accumulator capacity to supply 1.5 times the volume of hydraulic fluid necessary to close all BOP equipment; the system must also be capable of maintaining a minimum remaining pressure of 200 psig above the required precharge pressure when all BOP's · are closed with the primary power source shut off; an accumulator backup system, supplied by a secondary power source independent of the primary power source, must be provided with sufficient , Register 77, April 1981 MISCF. LTJ~NEOUS BOAPDS, CCe~dISSIONS 20 ~3.C 25.035 20 ~3,.C 25.040 capacity to actuate al'l BOP equipment; (4) in addition to the primary controls on the accumu- .later equipment unit, at least one operable remote BOP control station must be provided; this control station must be in a readily accessable location on or near the drilling floor; a device to avoid unintentional closure must be provided on all ..::: remote blind ram closing' controls; · ..'1';-' .... -~- ~ (5) the BOP equipment must include a drilling spool with side outlets (if not on the blowout preventer body), a minimum three-inch choke line and a minimum two-inch choke manifold, a kill line, and a fillup line; the drilling string must contain full opening valves 'above and immediately below the ke-lly during all circulating operations using the kelly, with the necessary valve wrenches conveniently located on the rig floor; and .. (6) two emergency valves with rotary subs for all connections in use and the necessary wrenches must .be ccnveni- ently located on the' drilling floor; one valve must be_ an inside spring-loaded .... 'or flow activated type; the second valve must be a manually operated ball type, or equivalent valve. (d) Testing: (1) all ram-type BOP's, kelly valves, emergency valves and choke manifolds must be tested to the rated working pressure or to the maximum surface pressure as required to be submitted in (c) (2) of this .section; a'nnular preventers must be tested to not less than 50 percent of the rated working pressure; these tests must be made when the BOP equipment is installed or changed and at leasE"-once each week thereafter; test results must be recorded as required by sec. 7..0(a)(1) of this chapter; (2) to insure that minimum standards are achieved, the operator shall perform' the recommended tests for BOP closing .units specified in sections 5A and 5B of API RP 53; and . I (3) sufficient notice of certain BOP equipment tests must be given so that a representative of the commission can witness these tests; these tests will be specified in the drill- ing permit or by notice to the operator. (e) BOP equipment for cable tool drilling activities must have prior commission approval and must be in accordance t;ith good. established practice with all equipment in good operating condition at all times. (Elf. 4/13/80, Reg. 74; am 2/22/81, Reg. 77) .. ,. Authority: AS 31.05. 030 20 AAC 25.040. $;ELL IDENTIFICATION. (a) Every drilling well must be identified by a sign posted in a conspicuous place on or near 'thc derrick but not more than 100 feet from the well. For suspended or producible wells, the well sign must be at thc wellhead for multiple housed wells or on the wellhead building for single housed wells. The sign must be of durable construc- -8- · % Register 74, July 1980 MISCELLAneOUS BOAPDS, CC~-~I!SSIO~'~;S · · 20 A~C 25.040 20 ;.~C 25.050 · tion, large enough to be legible under normal conditions at a distance of 50 feet, and maintained in legible condition. Each-- sign must show . - (1) the name of the lease on w~ich the proposed objec- ' . . rive is located; '. " (2) the name of the lessee;· . ~ (3) the owner or operator if different from the lessee; (4) the well number; (5) the well surface location by quarter section, section, township and range; and (6) the drilling permit number '('for drilling wells). · . (b) The name 'of each lease or unit must be dif~e_en~ t and distinct. (c) The wells on each lease or property must be numbered in a nonrepetitive, log~dal, and distinct sequence. (d) Each well will be assigned an API well number by the commission when the drilling permit is approved. -, (e) For platforms or multiple...wel'l 'drill sites, the infor- mation required in (a) (1), (2), (3), and (5) of this section may be posted on one sign for each lease on the platform or at the main entrance to the drill site. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.045. SEALING OFF STRATA. (a) During the drill- ing of any well permitted under sec. 5 of this chapter, the contents of oil, gas, and water strata penetrated must be sealed to prevent them from passing into other strata. (b) Ail freshwater and water of present or 'probable value for domestic, commercial, or livestock purposes must be confined to their respective strata and adequately protected by methods approved by the commission. Precautions must be taken in drill- ing, completing, producing, and abandoning operations to guard against loss of any freshwater from the strata in which it occurs, and the contamination of any freshwater by oil, gas, or objectionable water. (c) Except for fluids removed by production from the com- pletion interval, all fluids encountered in a well must be con- fincd to their respective strata. (.Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.050. DEVIATION. (a) Any well which is not · intentionally deviated must be (1) drilled as close to vertical as is possible using normal, acceptable drilling techniques, dxcept that deviation is permitted for short intervals to straighten the hole, sidetrack Register 74, July 1980 MISCFI3ANEOUS DOARDS, CC~,~ISSI©NS 20 $$.C 25.050 . . junk, or correct mechanical difficulties; (2) surveyed to determine the inclination from the vertical with surveys starting at 500 feet and no more than 500 feet apart to total depth; and (3) surveyed by a complete continuous multishot direc- .. tional survey if the surface location is less than 660 feet frcm a lease line where ownership changes or less than 660 feet from · any other vertical or deviated well; the survey must be taken at intervals not more than 100 feet apart, beginning within 100 feet of the surface. ' (b) Any well which is to be intentionally deviated must meet the following criteria · (1) the application for the Permit to Drill (Form 10-401) must (A} state the surface and proposed producing interval locations; (B) include a plat drawn to a scale of 1 inch equal to 100 feet showing the path of the proposed well bore in relation to ~il other vertical and deviated well bores which are within .a distance of 200 feet from the proposed well bore and the true vertical depths must be shown at frequent intervals along each well bore; (C) list the affected operators and sho,~ that each has been furnished a copy of the application by regis- tered mail, or state that the applicant is the only affected operator; and ...... (D) includ6 a neat and accurate plat of the lease and of all affected leases showing the names of all affected op~'rators and the surface and proposed producing interval locations of. the well and all other wells within one-half 'mile of any portion of the new well; the plat must be drawn .to a scale which will permit easy observation of all petri- e... nent data; ... ~ ~ . (2) items (b)(1)(C) and (D) of this section are' not applicable to any well drilled on land subject to an approved unit, except that wells drilled near the unit's exterior boundary must conform with sec. 55 of this chapter; (3) if drilling is in progress, the operator shall notify the commission immediately of his intention to deviate and then .may proceed at his own risk; when an operator follows this procedure, he must file an application as soon as practicable and obtain another drilling permit as required in sec. 15 of this chapter; (4) if the applicant is the only affected operator and the commission does not object to the application, the commission will approve it immediately; if there are other affected opera- tors, the commission will hold the application for 10 days unless a letter of non-objection from each affected operator has been filed with the commission; if objection from an affected operator to the proposed deviation 'is received within the 10-day period, or if the commission does not approve the proposed deviation, thc Rsgist~r 74, July 1980 MISCELLANEOUS BOAPDS, CC~.~ISSI©MS -20 AAC 25.050 application will be subject to public hearing; if no objection from either affected operators or the commission is interposed within the .10-day period, the application will be approved and a drilling permit issued by the commission; and (5) the operator must run a complete, · continuous, multi-shot directional survey at intervals .not more than 100 feet apart, beginning'within 100 feet of the surface. .. · . . .. (c) Within 30 days after the completion, a~a~donment, or suspension of the well, a complete copy of each inclination and directional survey obtained must be filed with the commission. A composite survey may also be filed" if the operator feels this would better represent the well course. If a composite survey is filed, the operator shall specify the portion of each. survey used in the composite. · . · .. · , (d) If the prop. osed · or final loc~tion 6f the produci'ng interval of the deviated well is not in ·compliance with sec. 55 of this chapter or other rules of the commission applicable to the reservoir, the'operator may apply for an exception which will be handled in accordance with sec.~ 540 of this chapter. (e) For the purpose of this section, an affected operator is an owner in a quarter section directly or diagonally off- setting any quarter section upon which the operation is proposed to be conducted. In areas where irregular shaped leases are to be drilled the commission will determine who are the affected operators. (f) Inclination a~d.. directional survey reports must con- tain, when applicable, the following .· (1) name of surveying 'company; (2) name, title, and signature of person actually per- forming the survey; (3) the date on ~hich the survey was performed; (4) type of' survey conducted; (5) method used in calculating survey; (6) a complete identification of the well so as to indicate the name of the operator, the lease name, the well number, and field name; (7)' the depth interval over which the survey was con- ducted; (8) a certified plat showing the su~.face location, the plotted well course, and the nearest lease lines or unit lines; and (9) a tabulation of the depth and drift angles for all inclination survey points. , · (g) Certification requirements for survey reports are as fo 1 1 ows: (1) each inclination survey report as required in of this section must be accompanied by a certified statement of -11- Register 74, July 1980 MISCELLANEOUS BOARDS, C~.~.~ISSIONS 20 AAC 25.050 20 AAC 25.055 the operator or .someone acting at his direction on his behalf that .the well was 'not intentionally deviated from the vertical; (2) each directional survey report as required in (b) of this section may be certified to by the person ].'.aving personal -. knowledge of the facts, by execution and da ting of the data compiled; and ......... (3) a certified plat as required in (f)(8) of this section. o.' (h) The commission may 'require the submittal of the orig- inal film, time sheets, charts, graphs, discs, and other data used to compile the survey'. (i) The willful fil'ing of a false or incorrect inclination survey or directional survey is grounds for penalty actions under the applicable statutes. (Elf. 4/13/80, Reg. 74) · Authority: AS 31. 05. 030 20 AAC 25.055. '"'WELL SPACING. (a) In proven oil and gas fields, the establishment of drilling units and a spacing pattern will be governed by special field rules adopted in accordance with sec. 520 of this chapter. In the absence' of an order by the commission establishing drilling units or prescribing a spacing pattern for a pool, the following applies (1) the surface location of an exploratory well must not be located closer than 500 feet to any property line of the lease on which the well is. located, nor may any hydrocarbon reservoir be opened to the' well bore closer than 500 feet to any property"line of the lease on which the well is located; (2) where oil has been discovered, not more than one well may be drilled to that..pool on any governmental quarter section or governmental", lot corresponding to it nor may any well be drilled to that pool on .a .governmental quarter sectioq or governmental lot corresponding to it which contains less than 150 acres, nor may any hydrocarbon reservoir be opened to the well bore closer than 500 feet to any property line nor closer than 1,000 feet to any well drilling to or capable of producing from the same pool; 'and (3) where gas has been discovered, not more than one well may be drilled to that pool on any governmental section or governmental lot corresponding to it nor may any well be drilled to that pool on a governmental section or lot corresponding to it which contains less than 600 acres, nor may any hydrocarbon reservoir be opened to the well bore closer than 1,50'0 feet to any property line nor closer, than 3,000 feet to any well drilling to or capable of producing from the same pool. (b) An application for exception to the provisions of this section or any spacing order of the commission must set out the names of all owners and of all operators of governmental quarter sections directly and diagonally offsetting the quarter section -12- Ra~istnr 74, July 1980 MISCEL~ANE©US BOARDS, CC~.~ISSI©~IS 20 AAC 25. 055 20 AAC 25.065 where the oil well is located or the names of all.owners and of all operators of governmental sections' directly or diagonally offsetting the section where the gas well is located. A plat must be attached, drawn to a scale of one inch equaling 2640 feet or larger, showing the property for which the exception is sought, all other completed and drilling wells on the property and all adjoining' properties and wells. The application must be verified by a person acquainted with the facts, stating that all facts are true and that the plat correctly portrays pertinent and required data. The applicant for exception must give notice of that filing by registered mail to all owners and to all operators noted above and furnish the commission with a copy of the notice, date of mailing, and the addresses to which the notices were sent. The applica'tion for exception will be handled in accor- dance with sec. 540 of this chapter.' (Elf. 4/13/80, Reg. 74) .Authority: AS 3!. 05. 030 .. 20 AAC 25.061. WELL SITE SURVEYS. In offshore areas where the sea floor conditions or the presence of shallow geo- logic hazards or hydrocarbons are unknown, the operator shall conduct the well site surveys as may be required by the com- mission. These surveys and an analysis of the geologic hazards must be submitted to the commission as an attachment to the application for. a Permit to Drill (Form 10-401). (Elf. 4/13/80, Reg. 74 ) Authority: AS 31. 05. 030 .o 20 AAC 25.065. HYDROGEN SULFIDE. (a) When hydrogen sulfide gas is encountered in the drilling of any well, the operator must notify the Alaska Oil and Gas Conservation Commis- sion within 24 hours. :o .. : . , · (b) When a well is to be drilled in an area where a forma- tion to be penetrated is known to contain hydrogen sulfide gas or if hydrogen sulfide is encountered while drilling, each operator must meet the requirements of API RP 49 "Safe Drilling of ~ells Containing Hydrogen Sulfide." (c) Where there is an insufficient history of drilling in an area to know if hydrogen sulfide exists, the commission will specify on the dr. illing permit that the operator must comply with the minimum requirements for detection monitoring, contingency and control, and training as follows: (1) detection monitoring: (A) an automatic hydrogen sulfide monitor must be installed and have a combination visual and audible alarm system located where it can be seen or heard from all parts of the location; · (B) the automatic hydrogen sulfide monitor must have a minimum of two probes, one at the shale shaker and one on the bell. nipple; and · · Register 74, July 1980 MISCELL~2~EOUS BOARDS, C~.~IISSIONS 20 AAC 25.065 20 AAC 25.070 · . · , (C') in addition to the automatic hydrogen sulfid~ monitor, at least three hand-operated, bellows type detec- · .- tors with an adequate supply of extra detector tubes must be :. .. available at the drill site; .' ' (2) contingency and control: ....?.-.,..~. '" ' ~..' (A) hydrogen sulfide scavenger material for the .... " ' .drilling mud must be available on or near the location in ' .-,'[?-"." good condition and in sufficient quantity to adequately treat the mud system should hydrogen sulfide be encountered; (B) detailed emergency operating procedures must be defined and posted to insure the safety of. all personnel should hydrogen sulfide be encountered; (C) detailed step-by-step remedial procedures must be developed and posted to cover emergencies while drilling or tripping; and (D)~' personnel p~otective e'quipmant must be avail- able at the well site. (3) all drill site supervisors must be trained for operations in the presence of hydrogen sulfide. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.070. RECORDS AND REPORTS. (a) The operator of each drilling well shall (1) keep a detailed accurate written daily record of the well operations which must be available for inspection at reasonable times by the commission or a representative of the commission (A) at the well before completion, abandonment, or suspension; and (B) in Alaska for five years after completion, abandonment, or suspension, upon 30 days written notice; (2) · file with the commission, on or before the 15th of each month, the Monthly Report of Drilling and Workover Opera- tions (Form 10-404), setting out an accurate summary of the daily record of well oper. ations during the previous calendar month; and (3) file ·with the commission within 30 days after compietion, abandonment, or suspension of the well (A) a complete well record on the ~;ell Completion or Rec'ompletion Report and Log (Form 10-407); (B) a detailed report of all drill stem tests and production tests including time intervals, quantity and description of all recovered fluids, and pressure data; and (C) .a cqmplete well history. (b) A well is considered completed, abandoned, or suspended on the date significant well operations cease. The commission will, in its discretion, approve a subsequent date upon which a suspended well will be considered completed, abandoned, or sus- pended if the operator shows that significant well operations will be resumed within a reasonable time. -14- Register 74, July 1980 MISCELLANEOUS BOARDS, CC~.D~TSSIO~S 20 AAC 25.!05 (c) In this section, significant well operations means those well 'operations conducted in accordance with good oil or gas field practices. (Eff. 4/13/80, Reg. 74) . -Authority AS 31.05. 030 '20 AAC 25. 075. OTHER WELLS IN DESIGNATED AREAS. There .are areas in the state where drilling operations could unex- pectedly encounter oil, gas, or hazardous substances at shallo'~ depths. $~hen the commission obtains sufficient evidence to define a specific area and the approximate depth range of the substances, it will issue an order that'will present the evi- dence, define the area, and stipulate a drilling depth. After the issuance of such an order, any well drilled in the defined area for any purpose, that exceeds the stipulated depth will require a drilling permit and may be subject to the other require- ments of this chapter.,... (Eff. 4/13/80, Reg. 74) Authority: AS 31.05. 030 ..ARTICLE 2. ABANDONMENT AND PLUGGING. Section · 105. Abandonment and plugging requirements and notices 120. Well abandonment marker 140. ~;a te r wells 170. Location cleanup 20 AAC 25.105. ABANDONb~ENT AND PLUGGING REQUIRE~'.IE~;TS AND NOTICES· (a) Each well must be abandoned within 90 days fol- lowing the expiration of the lease unless an extension of time is granted by the commission. The' commission will, in its dis.cra- tion, grant an extension upon receipt of the form entitled Sundry Notices and Reports on Wells (Form 10-403), on which is specified (1) a request for a specific time extension; and (2) the reason an extension is necessary. (b) Each well to 'be abandoned must be plugged by the opera- tor who is responsible for the well, so as to prevent fluid migration within the wellbore. Notice of plugging or abandonment must be filed according to (c) of this section. Unless a differ- ent program is approved by the commission, the minimum require- ments for abandonment of a well are as follows: (1) a cement plug not less than 100 feet in length must be placed immediately above each hydrocarbon-bearing forma- tion open to the well bore; (2) a cement plug of at least 50 feet must be placed to extend to the surface of the ground in each hole for onshore wells and to the mud line in offshore wells; (3) the intervals below and between plugs must be filled with fluid of sufficient density to equal or exceed the fluid density utilized to ~rill that interval; · · .Register 74, July 1980 ~SC~OUS BOARDS, C~.~lISSIOb;S 20 kAC 25.105 (4)..'in uncased holes, in addition to the requirements of (1) through (3) of this subsection (A) ' a cement · plug not less than 100 feet length must be placed from 50 feet below the deepest exis- ting casing shoe to 50 feet inside the casing; (B) a cement plug not less than 100 feet length must be placed across the top of the stub where the casing is cut and pulled; and (C}. a cement plug not less than 100 feet length must be placed immediately below the deepest fresh- water bearing strata; (5) in cased holes, permanent packers or bridge pluga with a minimum cement cap of not less than 50 feet may be substi- tuted for cement plugs; ' (6) final abandonment of onshore wells is completed only after the well location is cleaned up as specified in sec. 170 of this chapter; and (7) final abandonment of offshore wells in addition to meeting the requirements of this section may also have to meet the requirements of other governmental agencies. (c) When a Well is ..to be plugged and abandoned, the form entitled Sundry Notices and Reports on ~'~ells (Form 10-403) must be filed and approved, whenever possible, before commencing work. However, when necessary, verbal approval may be obtained from thc commission or its representative before commencing work. The Form 10-403 must contain . (1) the reason for plugging or abandonment; and (2) a statement of proposed work which includes (A) information on porous strata; (B) the kind, size, and location (by measured depth) of existing, and proposed plugs; (C) any 'plans for mudding, cementing, shooting, .. · .-~..-- testing,, and removing casing; (D) all other pertinent information; and . (E) if the Form 10-403 is filed after commencing work, it must contain the name of the commission member or · its representative who provided verbal approval and the date of the approval. , (d) Notice of the plugging and abandonment must be given to the.commission in time so that a representative of the commission may be present to witness the work. ., (e) Following completion of the work, a final Form 10-403 must be filed. It must contain a history of the completed work and the date the well site would be in condition for final in- spection. (Elf. 4/13/80, Reg. 74) .. Authority: AS 31.05. 030 -16- P~gister 74, July 1980 MISCELLANEOUS BOARDS, (I2t.~SSSIONS 20 AAC 25.120 20 AAC 25.140 20 AAC 25.120. WELL ABANDONMENT MARKER. (a) The exact surface location of the abandoned hole must be shown by a steel marker post. The description and installation of the post must be as follows (1) at least four inches in diameter; (2) at lea st 10 feet long; (3) set in cement inside well casing; (4) extending at least four feet above final ground leve 1; following (5) the top of the piDe must be closed with one of the (A) cement plug; (B)- screw cap; or (C) welds; and (6) as an alternative method to (2) and (3) of this subsection, the marker post may be firmly welded with supporting fillets to the top of a blind flange placed on the wellhead. (b) The following information must be bead-welded directly to the marker post (1) name of the operator; (2) unit or lease name; (3) well number; and (4) 'exact location %~ith .(A) footage from section lines; (B) section number; '" (C) township, north or south; (D) range, east or west; and (E) meridian. (c) Inspection of proper marker post instal lation, . and correct information will be made by a representative of the commission at the time of the location cleanup inspection as required in sec. 170. of this chapter. (d) $~hen requested by the surface owner, the marker post installation requirement will, in the commission's discretion, be %;aived by the commission, in which case the information required in (b) (1), (2), and (3) of this section must be bead welded to the top of a blind flange placed on the wellhead. (e) In navigable waters, marker posts are not required. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.140. WATER ~;ELLS. If a well drilled for oil or gas is to be pluggcd and abandoned but may safely be used as a freshwater well, and such a use is desired by the landowner, the well need not be cemented above the required plug set below the freshwater as required in sec. 105 of this chapter. $;ritten authority for this action.~must be obtained from the landowner, · · · ·: ..'.'o[i7'-.,' , " R~gistar 74, July 1980 MISCELLANEOUS BDARDS, C~.~ISSI©NS · · 20 ;~AC 25. 140 20 AAC 25. 170 including his ~ssumption of the full responsibility for the final plugging of the water well.. This authorization must be filed with and approved by' the commission. Following the commission's approval of' the plugging of the well to 'the base of the fresh- water bearing strata and the location cleanup, the operator will be relieved of further obligation under his bond. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 · 20 AAC 25. 170. LOCATION CLEANUP. (a) Within one year of suspension or abandonment of an onshore well, the operator shall (1) remove all materials, supplies, structures, and installations from the location; (2) remove from location, adequately bury, or incin- erate all loose debris on or near the location in accordance with all applicable statutes and regulations; (3) fill and grade all pits;'and (4) leave~'~he location in a clean and graded condi- tion. (b) An extension of time .beyond one year will, in the commission's discretion, be 'granted by the commission upon receipt of the form entitled Sundry Notices and Reports on Wells (Form 10-403) on which is stated (1) a request for a specific time extension; (2) 'the reason an extension is necessary; and (3) a description of location cleanup progress. (c) Following completion of all work required in (a) of this section, or when requested by the operator, onsite inspec- tions will be made by a.representative of the commission to (1) verify a proper well marker as required in sec. 120 of this chapter; .." , (2) verify the location condition at the time of in- spection; and '. ~ (3) provide the operator and his field representative a report of the inspection. (Elf. 4/13/80, Reg. 74) .. Authority: AS 31.05. 030 -18- Register 74, July 1980 MISCFIi~F~NE©US BOARDS, 'C~4ISSI©NS 20 ~3.C 25. 200 20 k~.C 25.205 Section ARTICLE 3. PRODUCTION PRACTICES. 200. Surface equipment 205. Notification, of accidental loss of oil or gas 210. Multiple completion of wells 215. Commingling 'of production 225. Capacity of gas wells " 230. Production measurement 235. Gas utilization 240. Gas-oil ratios .. 2'45. Common production facilities 250· DispoSal of salt' water and other ~astes . 255. Equitable distribution of production 260. Illegal product, ion. ... 265. Automatic' shut'-in equipment 270. Bottom hole pressures.· · ' 20 AAC 25. 260. SURFACE' EQUIPMENT. (si Adequate ~roduc- tion equipment must be installed to control, separate, process, and clean in a safe manner all produced oil, gas, and water. Al! equipment must be installed and' maintained in accordance with good established industry practice. .. (b). All 'equipment must' be' adequately protected to insure reliable operation under the' range of. weather conditions expected for the speci.fic loca.tion and use. .. .. · . ·. -. (c) $~el lhead equipment i'nstall~d mus~ include adequate gauges and valves on the tubing' and on 'casing-tubing and casing- casing annuli to Show surface pressures and to control the well flow for the range of conditions expected. Other alternatives may be approved for subsea .completions. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 and 20 AAC 25·205. NOTIFICATION OF ACCIDENTAL. Los'S OF OIL OR GAS. (a) The commission must be immediately nOtified by the operator of any accidental loss of Oil or gas, or' both, from any drilling or producing well. This notification does not relieve the operator from complying with any other notification require- ments imposed by statute or regulation. · · . · (b} Within five days after the adcidental loss, the opera- tor shall submit a written report to' the commission detailing the following facts (1) time of incident; (2] location where incident took place; (3) volumes of oil and of'gas lost; ' ' (4) cause of the loss; (5} actions, taken and planned to prevent further loss; ~19- · · · . ~.1:~: ' . · Register 74, July 1980 MISC~.rANEOUS BOARDS, C~.SqI$SI©NS 20 kAC 25.205 20 AAC 25.230 (6) equipment or procedural changes, if applicable, t prevent the loss from recurring. (Eff. 4/13/80, Reg. 74) - Authority: AS 31.05. 030 20 AAC 25.210. MULTIPLE COMPLETION OF WELLS. A well ma' not be completed in more than one pool without approval of the commission. The commission will require evidence of adequate an~ complete separation as ascertained by pressure or circulatio~ tests conducted at the time the packers are set. Subsequently, if packer leakage is suspected, the commission will, in its discretion, request the operator to provide proof of adequate ant complete separation of the pools involved in the completions o~ make a packer leakage test. Notification must be given so that the packer leakage test may be witnessed by a representative of the commission. (Eff. 4/13/80, Reg. 74) * Authority: AS 31.05. 030 20 AAC 25.215.' ~COMMINGLING. .... OF PRODUCTION. (a) Om the surface, the production from one pool may not be commingled with that from another pool except when the quantities from each source of the production are determined by periodic well tests or other measurements. (b) In the same well bore, commingling of production from two or more pools will not be permitted except after notice, hearing, and an order of the commission approving such ccmming- ling. After the first hearing the commission will, in its dis- cretion,--approve commingling in other wells in the same pools if the proposing operator has certified that all operators with wells completed in one or more of the pools have been notified and no protest is furnished the commission within 15 days. (Elf. .,.4/13/80, Reg. 74) .. ""%4..- ... -'', · ' Authority: AS 31.05'. 030 20.AAC 25.225. CAPACITY OF GAS WELLS. Ail gas wells must be tested by the multi-point back pressure method upon completion or at a time requested by the operator and approved by the com- mission. The test results must be reported to the commission on the form entitled Gas $;ell Open Flow Potential Test Report (Form 10-421) within 30 days after the test. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.23'b. PRODUCTION MEASURE~IENT. · (a) All produc- tion from wells must be measured to determine the quality and quantity of produced fluids, using equipment and techniques acceptable to the commission such as AP/ Standards, Recommended Practices, and Specifications. (b) Production may be measured from a lease or unitized property as a whole if adequate individual well test facilities are provided to enable accurate allocating and reporting of all I'l,~i,l:: t¢~ individua! we.]ls -20- " Register 74, July 1980 MISCE?I3~NEOt~ BOARDS, CC~.~IISSIO~:S 20 A~%C 25.230 (c) Bypasses must not be connected around sales measurement equipment such as tanks, meters, gauges, .or gas meter runs. (d) The volumes of' produced gas, oil and water must be reported monthly, where appropriate, on the Monthly Production and Injection Report' (Form 10-405), the Producer's Report of Gas Disposition (Form 10-422), and the Report of Injection Project (Form 10-413). - (e) The commission will, in its' discretion, require suffi- cient notice so that its representative may monitor, witness, and collect data from (1) well tests to verify production allocation and gas-oil ratio determinations; -' (2) measuring equipment insta'llations ko verify that (A) tank settings are' in' accordance with APi Standards includi.ng automatic gauging, if installed; (B) liquid hydrocarbon metering is in accordance with API Std. 2502, "Lease Automatic Custody Transfer"~ and API Spec. liN, "Lease Automatic Custody Transfer (LACT) Equipment",- (C) meter provers and calibration ara in accord- ance with API Std. 2531, "b~echanical Displacement b[eter Prove rs" - '(D) gas metering, meter runs, and calibrations . "Orifice b:etering of are in accordance with API Std 2530, Nat..ural Gas" or gas metering by turbine and other meters is in accordance with accepted industry standards; and (E) gas volume determination is in accordance with acceptable differential pressure chart or electronic computer methods; · (3) liquid hydrocarbon pipe line run tickets, to v~rify that the volumes for custody transfer have been properly deter- mined by making (A) ~temperature adjustments to 60°F, from tanks or meters; ('B) API gravity determinations from appropriate fluid samples in accordance with API Std. 2544, "Hydrometer Me thod" - (C) basic sediment and water (BS&W) determina- tions from appropriate samples in accordance with API Std. 2542, "Standard Methods of Test for Water and Sediment in Crude Oils"; and (D) meter proving factor determinations in accor- dance with API Std. 1101, "Measurement of Liquid Petroleum Hydrocarbon and Positive Displacement Meter"; and API Std. 2534, "Liquid Hydrocarbons by Turbine Meter Systems" except that successive meter factors that differ by more than 0.0025 are unacceptable and proper steps must be immediately taken to bring the meter within acceptable tolerance. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 -21- Ra~istnr 74, July 1980 MISC~r.rANEOUS ~OAPDS, CC~.~SSIONS 20 AAC 25.235 20 AAC 25.245 20 AAC 25. 235. GAS UTILIZATION. (a) Gas from a well mar be used in lease or unit operations for (.1) light or fuel; ' (2) injection to increase the ultimate recovery of :,.: 'hydrocarbons, or for storage; -..~: (3) the extraction of liquid hydrocarbons if the gas · .=z:.~g'-is not wasted; and (4) the artificial lifting of oil from a pool if all gas returned to the surface is'used without waste. (b) Gas from a well' must nc)t be permitted to escape into the air without commission approval, except . (1) when required for safety; (2) when required for initial testing; and '(3) in "cases of operational necessity if no such escape is for more than five days within any 30-day period. (c) The disposi'~ion of gas pr. oduction must be reported each month on the Producer's Report of Gas Disposition (Form 10-422). (Eff. 4/13/80, Reg. 74).' · . Authority: AS 31.05. 020 AS 32.05. 030 · ' 20 AAC 25. 240. .GAS-OIL RATIOS. (a) An oil well may not be allowed to produce with a gas-oil ratio in excess of 2,000 cubic feet of gas 'per baCrel of oil. (b).. Upon appliCation by an operator, the limitation in (a) of this section will, in the commission's discretion, be waived by the commission -' (1) fo~ wells producing from a pool that has an approved additional recovery project; or , (2) where the produced gas is being returned to the same pool. (c) Exceptions for conditions other than those specified in (b) of this section will, at the discretion of the commission, be granted only after application, notice, and hearing. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 22.245. COMMON PRODUCTION FACILITIES. Common facilities may be' used to receive the production from any number of wells if adequate tankage or other measuring equipment is installed so that prod.uction from each well can be accurately determined at reasonable intervals. The commission will, in its discretion, require the measurement of production from each lease. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 -22- Ra~ister 74, July 1980 MISCELLANEOUS BOARDS, CC~IISSI~S · 20 AAC 25. 250 20 AAC 25.265 .. 20 AAC 25.250. DISPOSAL OF SALT WATER AND OTHER WASTES. Salt water 'and other wastes may be disposed of by injection into a hydrocarbon bearing formation upon approval of the commission. The disposal must be done in a manner that will not contaminate fresh water sources or endanger other' natural resources. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.255. EQUITABLE DISTRIBUTION OF PRODUCTION. (a) Whenever the commission limits the quantity or rate of production of oil or gas that may be produced from a pool, the production allowed will be distributed among the wells or properties in such a manner that each producer has the oppo~-tunity to produce or receive his just and equitable share. · · · (b) Production._.tests of wells, in cases where ~he results of the tests may be used in determining correlative rights of other producers, may be Witnessed by those producers and 'they must be notified by the operator of the wells and be given an opportunity to be present. (Elf. 4/13/80, Reg.' 74) Authority: AS 31.05. 030 20 AAC 25.260. ILLEGAL PRODUCTION. No person may prc~uce or transport crude oil or natural gas from any well or pool in Alaska except that which has been produced in accordance with the regulations and orders of the commission. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05. 030 20 AAC 25.265. AUTOMATIC SHUT-IN EQUIPMENT. (a) Any well covered by this chapter with.an offshore surface location, which is capable of unassisted flow of hydrocarbons, must be equipped with a commission-approved (1) fail-safe automatic surface safety valve (SSV) capable of preventing an uncontrolled flow; and (2) fail-safe, automatic surface controlled subsurface safety valve (SSSV), unless another type of subsurface valve is approved by the commission; this valve must be in the tubing string and loca(ed below the mud line, permafrost, or at some other depth as may be required; the valve must be capable of preventing an uncontrolled flow. · . (b) 'The commission will, in its discretion, also require SSV's or SSSV's,. or both, on wells in other areas after notice and hearing in accordance with sec. 540 of this chapter. (c) A representative of the commission will witness opera- tion and performance tests at intervals and times as prescribed by the commission to confirm that the SSV, SSSV, and all associ- ated equipment are in proper working condition. (Elf. 4/13/80, Reg. 74 ) . · .23 Authority: AS 31.05.030 Register 74, July 1980 MIso~.rIANEOUS BOA~S, C~.~4ISSIONS · · 20 AAC 25.270 20 AAC 25.320 20 AAC 2'5'.'270. BOTTOM HOLE PRESSURES. The operator Shall make a test to determine the bottom hole pressure in the dis- covery well in any new pool. The. test must be made after the well has been shut-in for a period sufficient to allow an accu- · . rate determination of the reservoir pressure. The results must be reported to the commission on the form entitled Reservoir Pressure Report (Form 10-412). (Eff. 4/13/80, Reg. 74) Authority:. AS 31.05.030 ARTICLE 4. REPORTS. Section 300. Request for addition information 310. Books and records 320. Forms to be used 20 AAC 25.300. -...REQUEST FOR ADDITIONAL INFORMATION. . This chapter does not limit or :restrict the authority of the ccmmis- sion to require the furnishing of such additional reports, data, or other information relative to drilling, production, transuor- · tation, storage, o.r handling of crude oil 'or natural gas in Alaska, as may appear to .it to be necessary or desirable, either generally or specifically, for the prevention of waste and the conservation of the natural resources of Alaska. (Elf. 4/13/80, Reg. 74) ' ' Authority AS 31.05. 030 20 AAC 25.310. BOOKS AND RECORDS. All operators, pro- ducers, transporters, storers, and handlers of crude oil and natural gas within Alaska shall make, and keep in Alaska for a period of not less ~han five years, appropriate books and records covering their operation in Alaska. The data from these bSoks and records must be used to make and substantiate the reports required by this chapter. (Eff. 4/13/80, Reg. 74) " Authority: AS 31.05.030 ~ '20 AAC 25.32'0'~' FORMS TO BE USED. (a) Where this chapter requires forms to be filed,-the forms to meet these requirements and the submission frequency are as follows (1). Application for Permit to Drill - Form 10-401 (e~ch well); (2) Bond - Form 10-402 (before drilling each well unless blanket bond filed); (3) Sundry Notices and Reports on Wells -Form 10-403 (irregular as needed); (4) Monthly Report of Drilling and Workover Opera- tions - Form 10-404 (monthly); .. (5) Monthly Production and Injection Report - Form 10-405 (monthly); -24- Register 74, July 1980 MISCELLANEOUS BOAEDS, CZ3,DSSSIO>~S · 20 klC 25.320 20 AAC 25.400 . · (6) Well Completion or Recompletion Report and Log - Form 10-407 (within 30 days after completion, suspension, or abandonment); (7) Well' Status Report and Gas-Oil Ratio Tests - Form 10-409 (irregular); (8) Reservoir Pressure Report - Form 10-412 (irregu- lar); (9) Report of Injection Project - Form 10-413 (monthly); (10) Gas Well. Open Flow Potential .Tes% Report - Form 10'421 (upon completion of gas well or at a time approved by the commission); and (11) Producer's Report of Gas Di.sFosition - Form 10-4'22 (monthly) . · · · (b) These forms .must be submitted to the Alaska Oil and Gas Conservation Commis'~ ion at 3001 Porcupine Drive, Anchorage, Alaska 99501. (Eff. 4/13/80, Reg. 74) · . Authori't~: AS ~31.05.030 ARTICLE 5. ADDITIONAL RECOVERY METHODS. · Section. · .. · 400. Application for additional recovery 410. Injection wells 430. Records and reports 20 AAC 25'.400. APPLICATION FOR ADDITIONAL RECOVERY. (a) Any operator proposing to gain additional, recovery by using methods other than those methods used for primary recovery shall submit an application for the project for approval by the ccmmis- sion. (b) o The application must contain the following: (1) the names and addresses of every operator of the project; ~' (2) a plat showing the unit, lease, or group of leases included within the proposed project; the plat must also show the location of the proposed injection well or wells and the location of all oil and gas wells, including abandoned and drilling wells an'd dry holes, and the name of every operator offsetting the' area encompassed within the project; {3) the pools in which all wells are currently com- pleted; (4) the name, description, and depth of the pool to be affected by injection; (5) the logs of all existing injection wells; (6) the description of the casing in each injection well, or the proposed casing programs, and the proposed method for testing the casing before use as an injection well; Register 74, July 1980 MISC~r.rANEOUS BOANDS, CE~.~flISSIO~:S 20 AAC 25.400 20 AAC 25.430 · .- - , · . (7) a. sta't'ement as to the injection fluid to be used its sources, and the estimated amounts to be injected daily. "'' (8) a 'tabulation showing' recent production tests for each of the producing oil and gas wells; and (9) a statement of the plan and rate bf development ol "":'the area included within the project. · . . "' (~) A copy~ of the ap~licat'ion must be mailed or delivered by the applicant (1) to every operator affected by the project as shown on the application on or before the date the application is filed with the commission; .and "" (2) ' to the commission, including a list of all oper- ators, .with their addresses, to whom the application was mailed or delivered. ., " (d) In the absence 'of any object~on within 30 days from the date of mailing, the..commission will, in its discretion, approve the application.' If objection is made, the commission will set the matter for hearing in accordance with sec. 540 of this chap- ter. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.020 AS 31.05.030 20 AAC 25.410. INJECTION WELLS. Wells used for the injection of gas, air, water, or other extraneous fluids into the producing reservoir must have. (1) safe and adequate casing which must be cemented to prevent'' leakage'or damage to oil, gas or fresh water resources; (2) safe and adequate tubing with a packer in place to prevent communication With the tubing-casing annulus; and (3) regular m6nitoring of the tubing-casing annulus to detect pressure communication. ~ (Eff. 4/13/80, Reg. '74) ' Authority: AS 31.05.030 20 AAC 25.430. RECORDS AND REPORTS. Each operator shall keep accurate records showing volumes of. fluids produced, inject- ed volumes,, reservoir pressures and injection pressures. Upon reasonable notic'e, the commission or its authorized representa- tive must be given full access during normal business hours to all records and reports. Each operator shall file with the commission· a monthly report which shows all produced and injected volumes and other data as required by the 'commission on the forms entitled Monthly Production and Injection Report (Form 10-405), Report of Injection Projects (Form 10-413) and Producer's Report of Gas Disposition (Form 10-422). (Elf. 4/13/80, Reg. 74) · . ... . Authority: AS 31.05.030 . · · -26- Registar 74, July 1980 MISCFLrANEOUS BOARDS, CC~PSSSICM.~S · 20 AAC 25.505 20 ~AC 25.510 ARTICLE 6. GENERAL PROVISIONS Section 505. Scope of regulations 510. Commission office, hours and seal 515. U.S. Government leases 520. Field and pool regulation and classification 525. Forms upon request 526. Fire hazard 530. Cooperation with other parties 536. Geologic data and logs 537. Public and c6nfidental well information 538. Naming of fields and pools · 540. Hearings 545. Public mailing 550. Oaths 555. Orders 557. Subpoenas 570. Definitions 20 AAC 25.505. SCOPE OF REGULATIONS. This chapter con- sists of general regulations of state-wide application which apply to all wells and fields. However, the commission will, in its discretion, and after notice and opportunity for public comment, adopt orders applicable to particular areas or subject matter, which prevail over these general regulations to the extent that they are in conflict. (Elf. 4/13/80, Reg. 74) ' Authority: AS 31.05.030 20 AAC 25.510. COMMISSION OFFICE, HOURS AND SEAL. (a) The principal office of the Alaska Oil and Gas Conservation Commission is Iocated at 3001 Porcupine Drive, Anchorage, Alaska 99501. The commission's telephone number is (907) 279-1433. · . · (b) The office of the commission is open for the trans- action of business each day from 8:00 AM'until 12:00 Noon and from !:00 PM until 4:30 PM, except Saturday, Sunday and every state holiday. A commission representative will be available after normal office hours, and on week-ends and holidays through an answering se'~ice by calling the same number as shown in (a) of this section. -27- Registar 74, July 1980 MIS~rJrANFf~S BOASDS, C~4b~SSI~]S 20 AAC 25.51n 20 AAC 25.52 (c) The official seal of the commission is reproduc be 1 ow. ', (Eff. 4/13/80, Reg."'~'4)' Authority: AS 31.05.017 AS 31.05.03~ AS 31.05.050(b · 20 AAC 25.515. U.S. GOVERNb~ENT LEASES. All persons drilling on United States Government leases shall comply with al' applicable regulations of the commission which are not in con- flict · with a. pplicable United States government regulations. (Eff. 4/13/80, Reg. 74.) '"' .. Authority: AS 31.05.014 20 AAC 25.5J0. FIELD AND POOL REGULATION AND CLASSIFICA- TION. (a) .Upon the request of the commission or any affected lease owner at anY time after the discovery of oil or gas' ,in a field or pool or both, a hearing will be held and the commission will issue an order, 'based upon the evidence presented, clas- sifying the pool as an oil or gas pool in a field and prescribing rules for the development of the pool. All pool orders so prom- ulgated must (1) prevent waste and protect correlative rights; and (2) be based on the operating and technical data pre- sented. .. ' (b) The corn.mission will, in its discretion, reclassify fields and pools or amend pool orders upon the presentation of additional data at a subsequent hearing. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.020 AS 31.05.030 AS 31.05.060 AS 31.05.100 -28- Register 74, July 1980 MISCELLANEOUS BOAFDS, CC65MISSIONS 20 AAC 25. 525 20 AAC 25.536 20 AAC 25.525. FORMS UPON REQUEST. Forms for applica- tions, notices, approvals, and reports required by the commission will be furnished upon request. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.526. FIRE HAZARD. Each well location must be maintained in a manner to prevent fires. All rubbish, debris, waste material, spilled oil, and any other substance that consti- tutes a fire hazard must be disposed of in a manner and at a location approved by all applicable state and federal regulatory agencies. (Eff. 4/13/80, Reg. ';4) Authority: AS 31.05.030 20 AAC 25.530~ .COOPERATION WITH OTHER PARTIES. The commission will, in its discretion, f~om time to time enter into arrangements with Alaska and federal government agencies, indus- try committees, and individuals with respect to special projects, services, and studies relating to the conservation of oil and gas. If any arrangement requires the commission to utlitize procedures not covered in this chapter, the procedures necessary to carry out the intent of the arrangement will be formulated and made available at the office of the commission after public notice and opportunity for public comment. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.023 AS 31.05.030 20 AAC 25.536. GEOLOGIC DATA AND LOGS. (a) The operator shall log the portion of the hole below the conductor pipe by either a complete electrical log or a complete radioactivity log unless the commission specifies which type of lo9 is to be run. (b) Within 30 days after completion, suspension, or aban- donment of a drilling well, the operator shall file with the commission (1) 'a complete mud log or a lithology log cons is ting of a detailed record and description of the sequence of strata encountered, including kind and character' of the rock and all shows of hydrocarbons; ~ (2) a complete set of washed and dried, legibly-iden- tified samples of all well cuttings as caught by the operator in accordance with good geological practices; (3) a brief description of all cores and a chip from each foot of recovered core; (4) a list of the geologic markers encountered in the 'well and the measured and true vertical depths of each marker; (5) a sepia and a reproduced copy of all logs run in the well, (including the composite logs, if available) except velocity surveys and experimental logs; and (6) the digitized data if available, for copying, for all logs required in (5) of this subsection, except the dipmeter survey. -29- · Registar 74, July 1980 MISCE~OUS BOARDS, O2~.SMISSIONS 20 AAC 25.536 20 AAC 25.537 (c) The commission will, in its discretion, waive th~ requirements of (a), (b) (1), and (b) (2) of this section for .. ...development. wells. ' · ' (d) In this section (1) "experimental logs" means the logs which are so newly developed or so limited or specialized in application that they are not commonly run on petroleum exploration or development wells; and .. '. ( 2 ) "vel oci ty survey" means a survey, the primary purpose-of which is to determine velocity of seismic waves through formations penetrated by a well by measuring travel times of seismic pulses fr. om or' near the surface to a seismometer lowered to various depths in the well, and al so include~ the integrated time markers on sonic logs. (Elf. 4/13/80, Reg. 74) . ' Authority: AS 31.05.030 AS 31.05.035 '20 AAC 25.537. PUBLIC AND CONFIDENTIAL WELL INFOR~.~AT!ON. (a) The commission will routinely make available to the public, by means of records or reports, in its offices or elsewhere, or by means of regular publication, the following information (1) surface and proposed .bottom-hole location of each well, after approval of the drilling permit; (2) total depth, bottom-hole location and well status after the Well Completion or Recompletion Report and Log (Form 10-407) is filed; .... (3) production data and production reports, as required to be filed by the operator each month; and (4) all well information required to be filed by the operator after the expiration of the confidential period. -':' ; J' II (b) Information not required by this chapter, but voluntar- ily filed with the commission will be kept confidential if the person filing the information so requests. II (c) In this section, well status" means the classification of a well as oil, gas, service, suspended, or abandoned. (d) Except as provided by (a) of this section, the reports and information required to be filed by the operator will be kept · ~confidential.by .t.he commission for 24 months following the 30-day filing period unless the operator gives written 'and unrestricted .permission to release 'all of the report's and information at an earlier date. .Upon notification from the commissioner of the Department of Natural Resources that he has made a finding that the required reports and information from a well drilled on state land contain significant information relating to the valuation of unleased land in the same vicinity, the commission will hold the reports and information confidential beyond the 24-month period -30- i. Register 74, July 1980 55SCELL~N~OUS BOARDS, C~.~ISSI©NS 20 ~D.C 25.537 20 AAC 25.540 and until notified by the commissioner of the Department of Natural Resources to release the reports and information. (Elf.-- .4/13/80, Reg. 74) Authority: AS 31.05.026 · ' AS 31.05.030 ~ AS 31.05.035 20 AAC 25.538. NAMING OF FIELDS AND POOLS. (a) The following procedures must be followed for the naming of new fields and pools (1) if the operator believes the well is a new field or a new pool discovery and wants to participate in naming the discovery, he shall furnish information to ~'he commission showing why he believes a new discovery has been made, not later than 30 days after the earliest of the following dates (A) t. he date the well information is rel'eased by the commission to the public; or (B) the date regular production commences; and (2) at the same time that the information in (a) (!) of this section is filed, the operator may submit three recomm~..da- tions for a new field name or a new pool name or both. He may indicate his first, second, and third choice of names. (b) The ~ommission will consider all of the information filed to determine if a new discovery has been made. If the commission finds a new discovery has been made, the commission will select a field name or a pool name, or both, giving consid- eration to the operator's recommendation, significant landmarks, public use, conflicts .with other pool and field names, geologic completion interval, and any other factors which make it unique, acceptable, and usable. (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 20 AAC 25.540. ~ HEARINGS. (a) Upon its own motion or when a request is received to issue an order affecting a single well or a single field, the commission will give notice by publishing in an appropriate newspaper. The notice will provide the essen- tial details of the proposed or requested order and set out the date, time, .and place for a hearing. A proper protest and request for hearing must be filed with the commission at its office in Anchorage, Alaska within 10 days after the publication date by any person who may be aggrieved by the requested order if issued. If such a protest is timely filed, a hearing will be held on the date and time specified in the notice. If no protest is timely filed, issuance of the order will be considered by the commission without a hearing. (b) The following procedure will be followed at public hearings conducted under (a) of this section: (1) the hearing will be called to order and the sub- ject of the hearing along with the date and place of public notice given for the .hearing wil,<.l .be read into the record- -31- Register 74, July 1980 MIS~LrANEOUS BOARDS, CC~SSZONS 20 AAC 25.540 20 AAC 25.545 (2)" the commission will receive both sworn testimon' and unsworn statements; it will give greater weight in its delit> · erations to sworn testimony; ('3) all persons wishing to tes%ify will be sworn; (4) each witness shall state his or her name and who · ' he or she represents; '~' ~' '.' (5) each witness who wishes to give expert testimony '_. shall state his or her qualifications and the commission will rule on whether the witness qualifies as an expert; (6) the applicant will be asked to present his testi- mony first; all others wishing to present testimony will be heard next; upon request, the commission will, in its discretion, allow cross-examination of witnesses by the applicant or affected owners; (7) .any person wishing to make an oral statement will be al lowed to do so after the conclusion of all tes ~ ~ .__mony~ (8) any person wishing to submit a written statement · will be permitted to. do so after the conclusion of the oral statements; (9) the commission will, in its discretion, ask ques- tions of any of the witnesses; (10) members of the audience ~ill not be permitted to ask questions of witnesses directly; if they wish to have a question directed to a witness; they must write the question down and give it. to a designated commission representative indicating to whom the question should be directed; before the end of the hearing, the commission will review these questions and ask those which i._t. believes will· be helpful in eliciting needed informa- tion; all questions will be included in the hearing reCord; and · (11) a written transcript of the hearing will be pre- pared and included in the public record of the hearing. : ! ! (c) Hearings on mat~ers of state'wide or general application will be held under' the applicable provisions of AS 44.62 (Admin- istrative Procedure Act). (Elf. 4/13/80, Reg. 74) Authority: AS 31.05.030 · AS 31.05.050 AS 31.05.060 '20 AAC 25.545. PUBLIC MAILING LISTS. Public mailing lists will be maintained by the commission for the purpose of sending appropriate notices, orders, and publications to persons who request to be put on these lists. (Eff. 4/13/80, Reg. 74) · . . · Authority: AS 31.05.030 . · AS 31.05.035 AS 31.05.050 AS 31.05. 060 Register 74, July 1980 ~SC~.r,rANEOUS BOARDS', C~-~,SS$IONS · . 20 AAC 25.550 20 kAC 25.570 20 AAC 25.550. OATHS. Each member of the commission has the power to administer oaths to witnesses in any hearing, inves-" tigation, or proceeding conducted under AS 31.05 and this chap-. ter. (Eff. 4/13/80, Reg. 74) . · Authority: AS 31.05.030 · ' AS 31.05.070 20 AAC 25.555. ORDERS. No order, except in an emergency, will be issued by the commission except under the procedure con- tained in sec. 540 of this chapter. An emergency order will,-in the commission's discretion, be issued when an emergency requir- ing immediate action is found to exist. An emergency order is not effective for. more than 15 days. (E£f. 4/13/80, Reg. 74) Authority: AS 31.05.030 · AS 31.05.040 20 AAC 25.557. SUBPOENAS. (a) The commission will, in its discretion, issue subpoenas and subpoenas duces tecum. (b) Subpoenas duces tecum for the production of books, records, papers, or other documents of any sort will, in the commission's discretion, be issued by the commission upon a written request. The applicant must' establish that he has a proper relatiOn to the matter and show the relevance of the evidence sought and the facts expected to be proved by them. (c) The issuance of subpoenas, requiring the attendance of a witness for the purpose of taking oral testimony before the commission will, in the commission's discretion, be issued by the commission upon a written request. The applicant must establish that he has proper relation to~ the: matter and give the name and address of the desired witness. (Eff. 4/13/80, Reg. 74) Authority: AS 31.05.030 .. AS 31.05..070 20 AAC 25.'570. DEFINITIONS. In this chapter, unless the context clearly requires otherwise (1) "A?I" means the American Petroleum Institute; (2) "API Specifications" means those specifications that are in effect at the time these regulations are promulgated. · (3) "API Standards" means those standards that are in effect at the time these regulations are promulgated. (4) "API Recommended Practices" means those practices that are in effect at the time these regulations are promulgated. (5) "barrel" means 42 U.S. gallons, measured under standard conditions; -33- Register 74, 'July 1980 b~S~OUS BDAF~S, OS6D~SSI©NS 20 AAC 25.570 (6) "BOP" means blowout preventer, which is a cas- inghead assembly equipped with special gates or rams or othe packoffs which can be closed around the drill pipe, tubing · . casing, . or tools and which completely closes the top of the -. casing to c'ontrol well pressure; · o · · . (7) "bottom hole pressure" means the pressure in pounds · ".-.~.per square inch gauge' (psig) under conditions existing at or near · ' the producing horizon determined by means of an instrumen' adopted and recognized by the oil and gas industry; (8) "commission" means the Alaska Oil and Gas Conser- vat'ion Commission; · · . .. -'. (9) "condensate" means the 'liquid recovered at the surface that results from condensation due to reduced pressure or temperature of petroleum hydrocarbons existing in a gaseous · phase in the reservoir; - (10) "day" means a period of 24 consecutive hours from 7:00 AM one day to 7:00 AM the following day; the calendar day is the day in which this period begins; .. (11) "development well" means a well drilled within the proved area of an oil or gas 'reservoir to the depth of a strati- graphic zone known to be productive; .. · (12) "drilling fluid" means any fluid as the term is commonly used .in the industry for the purpose of drillin9 and removing" cuttings .from the. well; (13)' "d~illing uni.t" means that area set by the commis- · · . sion as provid'ed, for in A'S.. 31.05.100; · , (14) "exploratory Well" means a well that discovers or is drilled to discover a previously unknown pool; (15) "gas-oil ratio" means the ratio of gas in standard cubic feet to oil in barrels produced concurrently during any stated period; · (16) "gas well" means a well which produces gas as its principal product; · (17) "multiple completion" means the 6ompletion of any well so as to permit production from' more than one pool with the production from each pool completely segregated; ' (18) "oil well" means a well which produces oil as its principal product; -34- I Registe_r 74, .July 1980 MISCE. L[~d~I':()US 'I~DARDS, CCX.1~S:.;[©N.q 20 AAC 25.570 (19) "operator" means any person who, duly authorized, is in charge of the development of a lease or the operation of a wel 1; ' (20) "potential" means the ability of a well to produce oil or gas as determined by an approved test; (21) "reservoir'' means the same as pool; (22) "service well" means a well drilled or completed for the purpose of supporting production in an existing field; service wells are drilled for .3as injection, water injection, steam injection, air injection, saltwater disposal, water supply for injection, observation, and injection for in-situ combustion; . (23) "standard conditions" means a temperature of 60 degrees Fahrenheit and an absolute pressure of 14.65 pounds per ,, , square inch; (24) "stratigraphic test" means a hole drilled for the sole purpose of gaining structural or stratigraphic information. or both and to a depth sufficient to penetrate and explore forma- tions which are prospective producing pools, but is not drilled with the intent to be completed as a' producing well. (Elf. 4/13/80, Reg. 74)' Authority: AS 31.05.030 Editor's Note: See AS 31.05.170 for further definitions. -35- ATTACHMENT A-3 DESCRIPTION OF AREA OF REVIEW l_ The area of review for this permit includes the sections described as follows: T.iON., R.12W., S.M. Sections: 11 SE 1/4; 12 S 1/2; 13; 14 E 1/2; 23; 24 NW 1/4. ATTACHMENT B WELL MAR - AREA OF REVIEW 40 CFR 146.24 (a) 2 Map #1 shows the area of review and ail major surface facilities pertaining to the Granite Roint State Lease, Cook Inlet, Alaska. Map #1 also shows all intake and discharge structures. \ /I! ! ? ! I i! ..... ,~ .'~ .'Jo.. ~ -, r~o~, st,/az&-, ' [ ~ ........ ,,,,~,,,~ ......... ,.,,.,,,,,?~,,,~ ~,~o., ~,~, . ~;._ ~ ~_ _ '-~ _ . _. E E~ // E= // I I TD 9503'~ ~ ~ / ~ / . ~ // I ' TVD 9409'1 m -- / E / / ~ I ~ I /''-° / :]// / / :E I Ii/Ill // // iL/ // ~ / ~ I -9 .... ~',A~A~j~' --r,.,?_; ~ ~ . · -, ~ ., ' I ~ ~ / / J/ / " / T~'~,085'~~ / ~ I _/~ ~/ /; ~ / / · ~ / · ~ m ...... ~ ,~/ I i' I ,"' ,,,,,'~ ~, ~ , I / / ,' ~ / / / / ...i / / / /. / / / / / / / / "% ---~ i i i i i i i i ii i i i i11111 ii 11 ~t4~1~1,1l ~lllj ij~l~lll lilll i ii i i I i i i ii ii i i rlTI~l~i1TillTIi i ii i~1 ii]il i iI i i i i i i i iiiiii li ll iii i i i i i i i i i i i i i i i i i i i i ii iiillll i i []-~~-~ \., '~ ~,',-,,,,.~.~.~ ~ /,i //.~ ',, I ',,//_/.~ '-~/-/-~ .-" I -" ~ .~. .... xx ~ ~ MOBIL "~ / I -'"" ~ ". RD-2 ~ ~. ~ /' / · ..-.'" =- ..... ',~ %f - - ' . r ' ~ '" ' ' ~,~5 ........ ~-/~ ' ' ' / ~ -" ,f~4 ,,', .-"' . E .-' 13-1~I'~ I~ 0x ~-. · ';... I : ,, ,,~ ,'~ .-~,, ~ ~ ."/ ,' I/ ,' ; i ~ ' ' . ' // I/~11-~ I I ~31-2~ / / I I I I I I I I I I I I I I I I · / /I / / / I : I ''" ,' =_:- I i / /I "~_ ..... ,'~'~.~' ,' . , =_ I 't--" ..... ? +,,' ,' I ~ .... I -" I.-"'.;. 2' ', ,"" ~-'"'" '~*'~" I '"' ''~ ~ / I ---- .... t. [ [ / / GRANITE POINT FIELDI / I "~ ~ .............................. I .................................... ~ ...... ~'""" ...................................................................... ~ ............... ~ ................................................. ~ I / ' / / I ,' I I I / I I ,~ + , ~ + I ~ ' .'. ' q .,L;.' N mmmmmmm mmmmmmmmmmmmmmmmmmm m mmmmmmmmmm~ ~I I ii I I / / , I II II I I / / ' // I I /// / / / // / / / / / / /. 36 ALASKA DISTRICT II GRANITE POINT FIELD II !l . · ATTACHMENT C CORRECTIVE ACTION PLAN AND WELL DATA 40 CFR 146.24 (a) 3, 7, 8 A tabulation of data on all wells of public record which penetrate the injection zones within the area of review may be found in Attachment C-1. To the best of Union Oil Company of California's knowledge all listed wells were constructed, and where applicable, abandoned in compliance with the requirements of the Alaska Oil and Gas Conservation Commission. GRANITE POINT WELL DATA SPUD COMP. DEPTH WELL AP1 NUMBER DATE DATE SURFACE LOCATION BOTTOMHOLE LOCATION TVD STATUS GPS: 11-13 11-24 13-13 22-13 31-13 31-23 44-14 50-733-20026 07/13/67 10/04/67 2379'S-1375'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 735'S-1427'E f/NW,Cz.,Sec.13,TION,R12W,SM. 11,428 Gas Lift 50-733-20046 10/05/67 01/21/68 2383'S-1368'E f/NW/Cr.,Sec.13,TION,R12W/SM. 53'S- 260'E f/NW,Cr.,Seo.24,TlON,R12W,SM. 11,068 Gas Lift 50-733-20016 06/15/67 10/24/67 2371'S-1267'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 3034'S- 598'E f/NW,Cr.,Sec.13,T1ON,R12W,SM. 10,432 Gas Lift 50-733-20095 03/29/68 05/18/68 2379'S-1375'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 1903'S-1631'E f/NW,Cr.,Sec.13,T1ON,R12W,SM. 10,186 Gas Lift 50-733-10060 01/02/67 05/03/67 2383'S-1380'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 555'S-3543'E f/NW,Cr.,Sec.13,T1ON,R12W,SM. 9,537 Gas Lift 50-733-20072 01/11/68 04/19/68 2380'S-1371'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 602'S-2039'W f/NW,Cr.,Sec.23,T10N,R12W,SM. 9,873 Gas Lift 50-733-20051 10/24/67 01/10/68 2373'$-1262'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 1127'N- 619'W f/SE,Cr.,Sec.14,T1ON,R12W,SM. 10,449 Gas Lift 31-14R#2 50-733-10061-02 07/21/67 09/07/67 2362'S-1258'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 1491'S- l16'W f/NE,Cr.,Sec.14,T1ON,R12W,SM. 9,700 Gas Lift 32-13 50-733-20014-01 08/15/72 10/29/72 2390'S-1379'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 2517'S-2958'E f/NW,Cr.,Sec.13,T1ON,R12W,SM. 9,986 SI 33-13 50-733-20014 05/04/67 07/11/67 2390'S-1379'E fi/NW/Cr.,Sec.13,TiON,R12W,SM. 2550'S-2250'W f/NE,Cr.,Sec.13,TiON,R12W,SM. 11,196 P & A 44-11 50-733-20059 07/08/68 10/07/68 2360'S-1261'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 846'N- 848'W f/SE,Cr.,Sec.ll,T1ON,R12W,SM. 11,606 SI 31-14 50-733-10061 12/24/66 03/04/67 2362'S-1258'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 893'S-1342'W f/NE,Cr.,Sec.14,TION,R12W,SM. 8,257 P & A 31-14R#1 50-733-10061-01 03/18/67 07/20/67 2362'S-1258'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 1439'S- 275'E f/NW,Cr.,Sec.13,TION,R12W,SM. 10,487 P & A 50-733-2008 10/18/80 11/16/80 2392'S-1376'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 613'N-2063'E f/SW,Cr.,Sec,13,TiON,R12W,SM. 10,286 Inj. 50-733-20173 01/18/69 07/04/69 2391'S-1379'E f/NW/Cr.,Sec.13,T1ON,R12W,SM. 500'W- f/NE,Cr.,Sec.13,T1ON,R12W.SM. 14,415 Inj. 50-733-20193 07/03/69 09/13/69 2386'S-1381'E f/NW/Cr.,Seo.13,TiON,R12W,SM. 210'N- 369'E f/SW,Cr.,Seo.12,TiON,R12W,SM. 10,350 InJ. 50-733-20079-01 12/27/80 03/06/81 2371'S-1258'E f/NW/Cr.,Seo.13,TiON,R12W,SM. 1500'N-1507'W f/SE,Cr.,Sec.14,TiON,R12W,SM. 10,657 In 50-733-20080 01/22/68 03/09/68 2392'S-1376'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 4506'S-2068'E f/NW,Cr.,Seo.13,TION,R12W,SM. 10,249 R & A 50-733-20114 05/19/68 10/10/68 2380'S-1371'E f/NW/Cr.,Sec.13,TION,R12W,SM. 1211'N-lO76'E f/SW,Cr.,Sec.23,TlON,R12W,SM. 10,777 P & A 50-733-20079 04/20/68 06/21/68 2371'S-1258'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 1322'N-1654'W f/SE,Cr.,Sec.14,TION,R12W,SM. 10,703 P & A 50-733-20188 03/ /69 08/ /69 2368'5-1269'E f/NW/Cr.,Sec.13,TiON,R12W,SM. 1980'S- 660'E f/NW,Cr.,Sec.24,TlON,R12W,SM. 10,677 SI 24-13R MUCI-1 MUCI-2 33-14R 24-13 42-23x 33-14 12-24 1559p Attachment D/E Underground Sources of Drinking Water 4o CFR 146.24 (a) (b) The underground sources of drinking water for the Granite Point Field have been exempted for Class II activity. Attachment D/E-1 is a copy of 40' CFR 147.102 (b)(2)(A) which exempted the aquifers. Refer to Attachment F/G-1 for geologic information. ATI'AGI?.ZN~ D/E- 1 Federal Re,stet / Vcrl. 49. Na. 01I/ FridaY. ,May 11. 1984 ! Rules and Re,zutafion~ i i i Il I I I approved by the Director of the Federal geg, ster on bar z5. 1984. (1) Code of Alabarrm 1975. ti 9-17-1 throu~l 9-47-110 (1~50 and Supp. ~8~}; (2} State Oil and Gas Bc~a'd af Alabama. Oil and Gas Report [supplemented} {1981}, General Order Presm"..hing Rules and Regulations Governing the Conservation of Gil and Ga, in Alabama {Order No. ?S--lO0} as amended by Board Order No. 8.2-96 (May 14. 1982) amending Rule E--~}. ~1 The Memorandum of Agreement berween EPA Region IV and the Alabama Oil and Gas Board. siEned by the EPA. Regional AdmLv_,iarator on June 15. I982. [c) Statement of l~gal Autkority. "State Oil and Gas lqoard has Authority to Carry Out Underground Injection Control Program Relating to Class II Wells as DesCribed in Federal Safe ' Drinking Water Act--Opinion by Assistant.Attorney General," May 28. ' [dl 'l~e Pm~m Description and any ot~er materiaL~ submitted as part of the application ora=~ ',upplements thereto. § 147~! State.-~rnln~stere~ prc!trm'n..-- The UIC program for Class I. III. IV and V wells in the State of Alabama is the pm~mm administered by the Alabama Department of Environmental Management. approved by EPA pumuant to Section 1422 of [he SDWA. Notice o£ this approval was published in the Federal Reg~ter on (48 F-.q. 2,StOl; the effective date of' this program is August 2,5. lg83.'This prc~'am ccnsist~ of the following element~, as submitted to EPA in the Slate's program application: (nj Incor~.oraff~n by raj%fence. Thi requirements set forth in the S~ate statutes and regular/ohs cited in this paragraph are hereby incorporated by reference and made a part of'the applicable UIC program under the SDWA £or the State or' Alabama. This incorporation by reierence was approved by the Director of the Federal Register on Iune 25. 1984. [1) Alabama Water PolluHon Control Ac~. Code o£Alabama 1975. § §2.2-Z2-1 throu,a3~ 22-22-14 (1980 and Supp. 1983]; (2] Re~lations. Policies and Procedures'of the Alabama Water h'nFrovement Commission. Title I [Regulationsl (Re,.,. December lg80), as amended May 17. 198Z. to add Chapter 9. Under~-ound Iniecrion Control ' Regulations (e££ecdve Iune 10. 19821. as amended April 6. 1983 (effective May 11, (bi The Memorandum of Agreement between EPA ~e~on ~V and the Alabama Departmerrt of Environment Management. signed by the EPA Regional Administrator cm May 24, 1983. {c} St~temeat of £eg, ol Authority. (1} "Water Pollution~Public Health~S~te has Autho~ ~ Ca~ ~t Uno,round Injection Control ~gram Described in F~al S~fe ~~ Water ~t~ Opinion by ~gal Co~sel for the Water ~pmv~ ~~si~" J~ ~, 198a (2} ~ ~m A~om~, Aiabam~ Wamr ~mv~ent G~mi~i~ R~gm~l Admini~a~, ~A Regi~ "Re: AWIC Response to ~IEp Tate's {U.S. ~ Wash~on) ~mments AWIG's Final Apphcation for Class I. ~, and V ~C ~~' ~ptemb~ 21. [3} Mtter.&~ ~ab~ Assistant Attom~ ~n~at to Re~ · ~dep~dent Leg~ Co~s~ m ~b~ Water ~m~rovement Commission's U~~~d ~ec~ Con=vi [d) ~e ~D'am Des~p~on and any other maienats submitted as pan p-~tica~on or ss ~pptaments there.to. ,Sub,an ~ 147.1~ S~t~minist~ ~ 147.101 ~A-a~tni~ ~ [a) Contents. ~e UIC pro.am for ~e State of ~aska is a~inistered by ~is pro~ consists of the UIC proem requirements of ~ ~ 124, 1~, ~d 146, and ad~onal requirements set tomb ~ the ~mainder of ~is suh~ ~jecfion well ownem and ope~tors, ~d ~A. sha~ comply · ~ ~ese req~rements. (b} Effective date. ~e effective date . of ~e ~C prb~am for ~aska is:. Jun~' ~t~} ~is section iden~fie~ ~n~ gquife~ or the~ p~ions exempted in . sc~ordance wi~ ~ ~ l~.7{b} and 1~.4 ~is chapter at the ~me of pm~am pmmul~tion. ~A may in the ~e exempt other aquife~ ot p~on~, according to spplicable p~ced~es, wi~o~ ~i~ing such exemp~ons thi~ ~ection. ~ updat~ list of exemp~ons will be maintained in the Regional o~ce. {b} ~e following aquifers exempted in nccordance with the p~visions of ~ l~.7{b} and 148.4 ot this chapter for Class 1I injection acIivities only: (1} The portions ot aquifers in the Kenai Peninsula. greater than the indicated depths below the ~und s~ace, and descried by a ~ mile area beyond arYd l.,,'in~ di.'-ec:l7 below the following oil and las producing F. elds: {A} Swanson River Fieid~i."~ (B].Beayer Cra ok' Fi e-ld.~-I a.93 (C} Ke.;.afCas'Field--12C,0 ,test. (2} 'i'he For/ion of aquifers Cook Inlet descnked by a .u~ beyond and lyir4 ciL-~tiy b~,!cw the following oil and ia~ F-~: dnC..-.~ [A~Granite Point. [E).' .', fc_a. r',.h ur River oltCi .',.~ddle Ground ShcmI '., [D] Trading Eay Field. Noru~i State desc.-i~ed hv a ~ beyond and lying d:,--ec.ff~' bei~w Kupar-ak River Unit oil and pmducin,~ field. § 147.10'3 ' F_.stsdr~g cla~ I, H sto~e) ~ I11 we~ ~tn~ W Nf~m~ m~ecticn presto. o~er ~ operator sh~ 1~ p~ss~e to the lesser off [a} ~ value w~ch -~g not ~ceed operatin~ requirements oi ~ fi} or (ii) as app[icable: or (b) A value tot well head calculated ~y using C~e fo~uia: '~=inie~ion ~~ ~t ~e well head pop, Cs ~er ~qua~ m=~ d=m~ecnon dep~ m iaea la) Af~i~um mfecL;on pressu~. To meet the operating reqmrements ~ ~ 1~.28(~(3)(ii) (A) and (B} ~f ~apter, ~e o~er or opemton (i) Shall use ~ ~jec~on pre~m~ no ~eater ~an ~e presses establiske~ by · e Regional A~inis~ator for bhe field or ~o~ation in which ~e well is located, ~e Region~ ,~aa,l;~Subpart A of t,his chapter, and ~ll info~ o~ers and operato~ in ~ting of ~e. applicnble m~m pre~s~e:.~ . -- ,(iii May inject at press~;~ ~eate~ than'a~'~'~pec~fi~d in' nara~ph "[al(II(il, of this section for uhe field or ffo~atm~ in which he is operatin~ providad he submtts a request in to ~e Regional A~minisxator. and demo~ates to the sa~sfaction of the Regional Adminis~ator that such iniection pressure will not vmlate the requirement of t t l~.28(Q(3](iiJ (Al and ATTACHMENT F/G GEOLOGICAL DATA ON INOECTION AND CONFINING ZONES (CLASS II) 40 CFR 146.24 (a) ~, 6 Attachment F/G - 1 is a geological report on the formation underlying the Granite Point Field. GRANITE POINT FIELD~ COOK INLET~ ALASKA Geologic Report for Injection Zones and Confining Zones Conclusions: All oil reservoirs in Granite Point Field are separated from each other vertically by shales, silts and coals. This can be demonstrated by unique oil/water contacts ineach zone with the possible exception of the B-1 and B-2 sands. No potable water reservoirs are known to exist in the Granite Point vicinity. The only zone that has not been evaluated for potable water is between the sea floor and ?00 feet where electric logs have not been run. The highest oil reservoir is at least 7000 feet below this point, making the possibility of fresh water contamination extremely remote. All water injection occurs below ??00 feet. Location: Granite Point is located 27 miles north of Kenai in the Cook Inlet. There are three platforms set in the field. From north to south they are Bruce, Anna and Granite Point. (See Figure 1.) This application is for injection from the Granite Point Platform only. Structure: The Granite Point structure is a doubly-plunging anticlinal fold trending N15W. The west side of the anticline is much steeper than the east side. The axis moves east, the west flank steepens and the fold becomes tighter with depth. (See Figures 2, 3, 4 and 5.) Stratigraphy and Litholog¥: The stratigraphy of Granite Point Field is illustrated on Figure 6. Four of the five formations of the Kenai Group are present in Granite Point Field. From oldest to youngest: West Foreland, Hemlock, Tyonek and Beluga. West Foreland Fm.: The West Foreland Formation is of Eocene age and is primarily composed of lithic sandstones to siltstones, interbedded with tuffs, shales and minor amounts of coal. Its stratigraphic thickness varies between 100 and 200 feet. The West Foreland is non-oil-bearing in Granite Point Field. Hemlock Fm.: The Hemlock is of Oligocene age and is composed of well cemented coarse-grained sandstones to pebble conglomerates interbedded with siltstones or tightly cemented impermeable layers. Its stratigraphic thickness is between 400 and 600 feet, and its average porosity is about 9%. The Hemlock is known to contain oil but is presently nonproductive due to its low permeability. T¥onek Fm.: The Oligocene-Miocene Tyonek is the thickest formation of the Kenai Group present at Granite Point. ?he average stratigraphic thickness is about l_ 7000 feet. The Tyonek is a repetitious sequence of sandstone, siltstone shale and coal deposited by a moderate to high energy meandering fluvial system. The sands are deposited by channel filling and point bar sequences which are then overlain by overbank deposits of silt and mud. The overbank deposits provide a platform for vegetation which eventually generates a coalbed. (See Figure 7.) The shales and coals are the most laterally continuous facies and make excellent vertical permeable barriers. There are approximately 50 correlatable coals in the Tyonek with thicknesses ranging between 10 and 30 feet. At present, all of the known oil is below the 39th coal which occurs at approximately -7700 feet subsea in Granite Point #1 (top of structure on Union-Mobil acreage). There is 4000 feet of non-oil-bearing Tyonek on top of the highest known oil sand. There are four producing sand packages in the Tyonek listed from top to bottom A sand, B-1 sand, B-2 sand and C sand. These designations do not correlate with the same letter designations in any of the surrounding fields other than purely by coincidence. The porosity in the Tyonek sands range between 13-25%. The sand content tends to decrease upward through the section. All of the injection is confined within these oil producing zones. Water is injected at surface pressures between 6000 and 6200 psi. To the best of Union Oil's knowledge the rates and pressures of the injectors are not causing any fractures to propagate. Beluga Fm.: The middle-upper Miocene Beluga Formation is the youngest known formation to exist in the Granite Roint Field on Union-Mobil acreage. However, fresh water-bearing glacial or Beluga Formation present in wells northeast of Union-Mobil lease ADL 18761 may be present in the Granite Roint area as a thin veneer above 700 feet vertical depth. Electric log data is not available on this interval. The Beluga is composed of thin interbedded mudstones, sandstones and thin coals. Both the sand and coal content are notably less than in the Tyonek. The thickness of the Beluga is about 3700 feet on top of structure in Granite Roint #1 well. The Beluga is not believed to contain any oil. Due to the high shale and mudstone content the Beluga has extremely low vertical permeability. Proximity to Potable Water Reservoirs: There are no known water reservoirs with salinities low enough to be pOtable in the West Foreland, Hemlock, Tyonek or Beluga Formations in the Granite Roint Field. Salinities are interpreted from electric log data. The possibility of fresh water exists only in the unevaluated zone within 700 feet of the surface. The structural deformation is known to postdate the deposition of the Beluga, thus any water in an aquifer in the upper portion of the Beluga would be trapped by the structure if there is sufficient seal above it. If there is insufficient seal above it the water would not be fresh due to mixing of Inlet water. Nearly 7000 feet of sand, shale, silt and coal separates any possible fresh water aquifer from any potential water injection reservoir. (See Figure 2.) ~ ~_,: .,. ~ .~ ~, ~adI:~" 3. Wilson ' .......... Development Geologist BOW/pg 1038D . · I Polmer Motonueka ~ '-.-~RANITE POIN~,~ CHOR~~ 4 ~' N/,OL~/ ~ ~REEK~ ~ 'g ~ N,~ ~ / RO/NT 18AY / R ' ' ~ ~~ ~...~ ../ 2 /--/~mVE~ ~~ . ~ / REDOUBT ~ SHOAL ~ ~o,u ~ ~ v CREEK' . / j j ! (enol WEST ~RK ~ / -- ~¢ . (/ , o~7, D / / ~/ "': CREEK ~ · ~ hik .J r~ 2 ~ "~ C ....'"/" ' l j ~o., COOK INLET AREA ~,~ ,,0, 0~ ~,~, w A LA 8 KA TOIN o s ~o2o WELL DRILLI,~ PLATFORH 'F~~J ! LOCATION MAP ~ 200 FT. DEPTH CONTOUR u,~zs Fig. 1 A NORT -1000' -2000' -3000' -4000' -5000' -6000' -7000' -8000' -9000' -10,000' -I1,000' -12,000' -13.000' -14.000' IWEST GRANITE POINT FIELD CROSS SECTION A-A' GRANITE POINT PLATFORM," -- '"~ZONE O"~POT[NTIAL FR[S# WA?Eh eEAfIING II[LUGA Flit. (?l OR GLACIAL {1) SANG BELUGA FM. Al SOUTHEAST -1000' -2000' -3000' .5060' -6000' -7~00' -8000' -90DO' -10.600' GRANITE POINT 0IL SANDS TuxED#I GROUP / I MIDDLE JURASSIC) -I1.000' .12.000' -13,000' -14,000' STRATIGRAPH 'COLUMN GRANITE POINT FIELD COOK INLET ALASKA GEOLOGIC TIME ~)~ ERA PERIOD EPOCH ROCK UNITS (M.Y.) RECENT SEAFLOOR SEDIMENT VENEEP I I I /Il I I Io I lO~%~' ~ BELUGA FORMATION - ~o I TYONEK FORMATION I _ - ........ ~ ~ HEMLOCK CONGL. 30 4o~ I ~ .~ WEST FORELAND - I ~o~ ~~' FORMATION _ L_ ~0~ , Fig. 6 TIME SCALE AFT R VAN EYSINGA, 1978 R.B.S. APRIL, 85 T I0 N // // ,,// · ..." ;.:7' :' :.'.'.;." I Hep ADL- 18761 R 12W TOP GRANITE PT "X"INTERVAL HEMLOCK WEST FORELAN~ JURASSI TYPE LOG GRANITE POINT FIELD Granite Paint N! ~ ........ FIGURI unl®n Alaska District GRANITE POINT FIELD STRUCTURE CONTOURS TOP POOL "A" EQUIVALENT 500' -- ]-=1ooo, Ir..,6~[ ........ I I / 1..44.I .4 ,,, I REW ~ i I I TOP M~&NI'IT PT TYPE LOG GR.e~ITE POINT fiELD Gra~it$ I~nt Ne 1 "X*iNTERV~ )~id~ OCK FIGURE union GRANITE POINT FIELD STRUCTURE CONTOURS TOP POOL B't T I0 N t t / A / / / 26 25 R 12 W :, nl9,76 i SKS ' RCW r,?,,,, ~?"'1 ; .... i TOP GRANITE PT / , ......... --~- CONTOUR,, HORIZON HEMLOCK~ WEST FOR£LANP JURASSIC-- TYPE LOG GRANITE POINT FIELD Gronite Point Nt I unl®n Alaska Dislri¢l GRANITE POINT FIELD STRUCTURE CONTOURS TOP POOL"C" c, ,500' ~¢&cE O,tTt ~¥T~QM '[~mAFT'O C#[CK~ i I"= lO00' j r.,,'5,,J ........ J j j L.-2 ¥ TYPE LOG Granite Pl. ~ 1 Sand Caal [;hale Fig. ~7 ATTACHMENT H OPERATING DATA l_ Union Oil Company of California requests a waiver of the operating requirements of 40 CFR 146.23 (a), 40 CFR 147.103, and 40 CFR 147.104 (a) as allowed by 40 CFR 144.16 (a). Union Oil Operates all wells within the Granite Roint Field in accordance with the regulations of the Alaska Oil and Gas Conservation Commission. Attachment H-2 is a list of all Class II Injection Wells within the Granite Roint State boUndary. The listing shows injection pressure, rate, volume and annulus fluid information. The annular fluid for the Granite Point Field injectors is seawater brine, possibly containing a corrosion inhibitor. Injected Fluids: Source and analysis of the chemical and physical characteristics. There are two different categories of injection operations within the Granite Roint Field. They are source water injection and injection for well .stimulation. The following sections detail the types of fluids injected in each category. Source Water Injection: This fluid is filtered seawater from the Cook Inlet. Attachment H-1 provides additional information on the source water properties. Injection For Well Stimulation: These injected fluids are primarily acids and formation waterwash fluids which are used to increase well injectivity. These fluids may contain amounts of corrosion inhibitors, oxygen scavengers and other products used to minimize pipeline damage during the stimulation treatments. Other fluids of this nature may be used in future well stimulation activities. Additional information may be found in Attachment J, Stimulation Rrogram. Attachment H-1 REPORT OF ANALYSIS FILTERED COOK INLET WATER GRANITE POINT INJECTION WATER KENAI, ALASKA Oune Sampling: Results Chlorides (ppm) pH Total Dissolved Solids '(mg/L) Suspended Solids (mg?L) REFERENCE(*) METHOD PARAMTER SMEWW 210 C SMEWW 423 SMEWW 209 D Salinity pH SMEWW 209 C 12,747 6.8 22,850 1.0 Total Non-Filterable Residue (Suspended Solids) Total Filterable Residue (Dissolved Solids) (*) SMEWW: Standard Methods for the Examination of Water and Waste Water, 15 Edition. WELL NUMBER ATTACHMENT H-2 CLASS II~ TYPE 'R' INJECTION WELLS EST. AVE EST. MAX DAILY RATE DAILY RATE (BWPD) (BWPD) EST. DAILY EST. AVE EST MAX INJ. VOL INJ. PRESS INJ PRESS (BW) (PSI) (PSI) NATURE OF ANNULUS FLUIDS Granite Point Platform 24-13 3441 3800 3441 5900 6200 33-14 874 950 874 " " MUCI-1 1022 1350 1022 " " MUCI-2 2337 2700 2337 5800 " Water II l EPA _ _ OFFICE OF DIrlINKING WATER IHVENTORY OF INJECTION WELLS (~llil h~la~metlofl ie collacted ,.~der ina a,lho~lly ol the ~le ~rinkln~ ~al~r ~c/.) IV. FACILITY NAME AND LOCATI m. UA I r- i-KEr-Ai~e-L~ (mo., ¢1a¥, & year,) A. NAME II. FACILITY I.D. NUMBER~ U to C)[L.[TION .!-I ! f"l ~. CHANGE OF' [N'TRY It 13. STIqF'E:T ADDRESS OR llOUTE NI. IMI]iZR C. CITY OR TOWN ZIP CODE F, COUNTY V. LEGAL CONTACT: TYPE, NAME, PIIONE, MAILING ADDRESS, AND OWNER A. TYPE (mark 'X') O. NAME (la,I, lirst, & middle Initial) ~ 1, OWNER lo j.~ 2, OPERATOR · 0. ORGANIZATION G. INDIAN LAND (mark 'X') C. PHONE faree code A no.) 58 _ E. STREET OR P.O. BOX VI. WELL INF WELL OPERATION STATUS: c'~ A. CLASS B. TOTAL _LLANO TYPE NO. OF WELLS l~ t7 I - J" 'l I EPA Form 7500-48 (I 1-~9) F. CITY OR TOWN 4o H. ZIP CODE I. OWNERSHIP('X' one) UP'- PUBLIC U O. OTHER (mpecily) PRIVATE [] e ' I*~ 62 · [X.] S. STATE F. FEDERAL UC = UNDER CONSTRUCTION AC = ACTIVE TA = TEMPORARILY ABANDONED PA = PERMANENTLY ABANDONED AND APPROVED BY STATE AN = PERMANENTLY ABANDONED.AND NOT APPROVED BY STATE C. WELL OPERATION STATUS UC AC i Z - 24 - ATTACHMENT I FORMATION TESTING PROGRAM 40 CFR 146.24 (b) (1) Wells drilled and tested as part of the field development programs have yielded sufficient information to determine the characteristics of the existing injection zones. This testing includes, but is not limited to; drill stem tests and sample analyses, drilling pressure integrity tests (leakoff tests) to determine fracture gradient, injection tests and log analyses for physical rock properties and the presence of hydrocarbons. Information will continue to be collected on all production and injection zones located within the Granite Point Field, Granite Point State boundary. Well logs will be taken to obtain additional information on the rock and fluid properties of the reservoir. As required by AOGCC, reservoir pressure will be monitored on a continuing basis over the extent of the injection/producing areas. ATTACHMENT STIMULATION PROGRAM 40 CFR 146.24 (b) (2) Stimulation of Class II Injection Wells within the boundaries of the Granite Point State Lease may be performed; however, not on a routine basis. Stimulation may include acidization to treat damage and/or reperforation and possibly controlled fracturing to increase injectivity of the injection zone. In addition, small amount of fluid may be injected into various zones as a result of routine maintenance and stimulation. These operations may include: 1.) 2.) ~.) 4.) 5.) ~.) 7.) 8.) 9.) Acid treatments. Mud-acid treatments. Solvent washes. Corrosion inhibitor treatments. Fracturing stimulation. Diverting (plugging) agents. Well killing operations. Cement squeezes. Cement plugging. ATTACHMENT K INJECTION PROCEDURES 40 CFR 146.24 (b) (3) The Granite Point Field is using waterflooding to improve oil production. Filtered Cook Inlet water is being injected in some wells to maintain reservoir pressure and to drive oil toward producing wells. The surface equipment to carry out the waterflood from the Granite Point Platform is shown in schematic in Attachment K-1. Source Water Pumps Raw Water Storage 5 L TO TAL DomestiCuies~ D.! t 11/2 +psi Gas BLanket Cartridge ~ ~ Filter ~' ~~-~ FilteredWa'l:er Storage Tank T-12 Clear Deareated Water Storage United Pumps - II ~ .._[Throttle Bushing '"-I Water Tank ~'~ To Wells Overboard ,Gas Out . ,. GRANITE POINT PLATFORM WATERFLOOD SCHEMATIC DIAGRAM UNION OIL COMPANY OF CALIFORNIA ATTACHMENT L/M CONSTRUCTION PROCEDURES AND DETAILS Union Oil Company of California requests a waiver of the construction requirements of 40 CFR 146.22 and 40 CFR 147.104 (b) as allowed by 40 CFR 144.16 (a). Union Oil has and will continue to construct and convert all injection wells in accordance with the rules of the Alaska Oil & Gas Conservation Commission and Commission Order #60. All wells, both producers and injectors, are drilled and cased in essentially the same manner. All casing is cemented to assure no migration of formation fluids is possible. There will be some differences between wells regarding the size of pipe used and the depth at which the pipe is set. The difference between the types of wells is in ~the method of completion. A producing well is completed with gas lift mandrels in the tubing string. The injection wells are completed without gas lift mandrels and with filtered inlet brine in the tubing-casing annulus. The brine used as annular fluid in some injection wells is treated with a corrosion inhibitor. Attachment L/M-1 provides information on a typical drilling program for the Granite Roint Field Unit. Attachment L/M-2 describes a typical proposed drilling procedure for the Granite Roint Field. Attachment L/M-~ is a typical Granite Point Field completion. Attachment L/M-4 is a blank completion report. Surface Location: ~arget Location: Elevation: Proposed TD: Objective: Drilling Program: Logging Program: Coring Program: Completion: Attachment L/M-1 Typical Drilling Program (GPS 31-14) 2362'S, 1258'E of the NW corner Sec. 13, TION, R12W, SM. Top Granite Point sand at 1711'S and 572'W of the NE corner Sec 14, TiON, R13W. 99'KB above MSL Approximately 10,399'MD (lO,099'VD) being N70°W, 1934' from surface location. Well will be carried to an equivalent stratigraphic point of iO,300'MD in 31-14 RD 2. Granite Point sands at 9119'MD (8819'VD) being N70°W, 1934' from surface location. This well is to be redrilled from 4631'MD (4320'VD) below 9 5/8" casing point in 31-14. This is a l~O-acre location in the SE/4 of NE/4 Sec. 14. Directional program proposes vertical hole from ~5~7'MD (~204'VD) to total depth. IES, Sonic-Gamma, CDM, and mud log from kick off point to total depth. Sidewall samples as deemed necessary to evaluate oil or gas shows. Casing Guns, 4HPF. Attachment L/M-2 .Typical Drilling Procedure (GPS 33-14) 1. Abandon the existing wellbore thru a 9-5/8" cement retainer set +_9330' with 400 sxs. of cement or a sqz. pressure of ?000 psi whichever comes first. 2. Mill window in the 9-5/8" casing f/+_9320' & spot kick off plug. 3. Directionally drill 8-1/2" hole to +_il,500' TMD, +_10,730' TVD, TD. 4. Run logs. 5. Run & cement ?" liner f/+_9000' to +_il,500' TD. 6. Run CBL & Gyro survey (sqz. as needed for zone isolation). ?. Perforate the Middle Kenai "A", "B" and "C" zones as justified by logs. 8. Complete the well with 3-1/2" ABC modified tubing with down-hole flow regulators. 9. Place well on injection. 12. OTHER EQUIPMENT Baker Locator Sub (on pkr @ 8696') Baker 4 3/4"X3" Seal Assy @ 8697' Mule Shoe @ 8717' Baker 9 5/8" 'X 4 3/4" Model "DB" Perm Pkr @ 8698' Baker Locator Sub (on pkr @ 9527') Baker 4" OD X 3" ID Seal Assy @ 9527' ATTACHMENT L/M-3 J~ LI · · i 1/2" Landing Nipple Baker 3 @ 302' 18" Casing @ 430' 3=3/8'' Casing @ 3995' Mule Shoe @ 9542' Baker 7" X 4" Model "FB" Perm Pkr @ 9527' Baker Locator Sub (on pkr @ 10360') Baker 4" OD X'3" ID Seal Assy @ 10360' · · Mule Shoe @ 10375' . Baker 3 1/2" sliding sleeve @ 8662' Baker 7" X 4" Model "FB" Perm Pkr @ 10360' A Zone · . B Zone C Zone ! WELL SCHEMATIC UNION-MOBIL STATE #1 MUC I-2 UNION OIL CCM?AN¥ OF CN. IFOI~NI^ 9-5/8" Casing @ 8883' ,Camco MMGW Mandrel @ 8817' Camco MMGW Mandrel @ 9582' Camco MMGW Mandrel @ 10415' Camco MMGW Mandrel @ 10456' Bull Plug @ 10526' 7" Liner @ 10829' 0 ~,.AWN ~ AJ'P'D. $ C.,M.~ DAT~ FORM 247 (N~"W ~,/Se,) ClCD. __ ATI'.\CI L~[ENT L/M- 4 : BLANK COMPLETION REPORT ', STATE OF: ALASKA /4LASKA OIL AND GAS GONSERVATION GOMMISSION 1. Status of Well Classification of Service Well OIL [] GAS [] SUSPENDED [] ABANDONED [] SERVICE [] '2. Name of Operator 7. Perm,t Number 3. Address 8. APl Numl:)er 50- 4. Location of well at surface 9. Unit or Lease Name At Top Producing Interval At Total Depth .5. Elevation in feet (indicate KB, DF, etc.) I 6. Lease Designation and Serial No. I 12. Date Spudded I 13. Date T.D. Reached t 14. Date Comp., Susp. or AbancJ. t 17. Total Depth (MD*TVD, 118.PlugBackDepth(MD+TVD}[ 19. Directional Survey I t YES ~--J NO [-t 10. Well Number I 1. Field anc~ Pool 15. Water Depth, if offshore t 16. No. of Comolet~( I feet MSL 20. Depth where SSSV set t 21. Thickness oF Permatrost feet MD 22. Type Electric or Other Logs Run .. 23. CASING, LINER AND CEMENTING RECORO CASING SIZEIWT. PER FT. GRADE SETTIN( DEPTH MD TOP BOTTOM 24. Perforations open to Production (MD+TVD of Top and Bottom and interval, size and numbs) HOLE SIZE CEMENTING RECORO A.~.IOU.~,'T PULLED 25. TUBING F;ECORD SIZE DEPTH SET (MD) [ P-~C~:ER SET 26. ACID, FRACTURE, CEMENT SQUEEZE, ETC. DEPTH INTERVAL (MD) AMOUNT& KIND OF MATERIAL USED 27. PRODUCTION TEST Date First Production I Method of Operation (Flowing, gas lift, etc.) Date of Test · Flow Tubing Press. Hours Tested Casing Pressure PRODUCTION FOR TEST PERIOD ~ CALCULATED .' 24-HOUR RATE OIL.BBL OIL-BBL GAS-MCF GAS-MCF WATER-BBL WATER-BBL ICHOKESIZE GAS-OIL RATIO OiL GRAVITY-APl Icorr} 28. CORE DATA Brief description of lithology, porosity, fractures, apparent dips and presence of oil, gas or water. Submit core chips. Form 10-407 Submit in dupli¢ Rev. 7-1-80 CONTINUED ON REVERSE SIDE Attachment 0 Plan For Well Failures 4o c~R 146.24 (b) (4) Operators on the platform routinely monitor all wells to check for any abnormal operational condition. While at the well, the operator routinely checks the condition of controls, the annulus pressure and other well parameters. In case of a well failure where environmental impact is occurring at the surface as a result of such a well failure, spill prevention control and countermeasure (SRCC) plans are available on the platform. These documents provide information on the maximum quantities of fluids likely to be encountered in a spill, flow direction of spilled liquids and other pertinent information necessary to control a spill. Also, an oil spill contingency plan is available, which provides additional guidance on spill containment and clean-up procedures. In case of a well failure where below surface environmental impact is occurring as a result of such a well failure, all available data will be reviewed and the appropriate steps taken to eliminate the problem. Depending on the circumstances, actions such as pumping of "kill" weight fluid into the wellbore, setting of plugs in the wellbore, shutting in the well until repairs can be made, or other remedial actions will be performed. Attachment P Monitoring Program 40 CFR 146.24 (b) (5) Union Oil Company of California requests a waiver of the monitoring requirements of 40 CFR 146.23 (b), as allowed by 40 CFR 144.16 (a). Union Oil Company will monitor all injection wells in accordance with the regulations of the Alaska 0il & Gas Conservation Commission. The monitoring program includes continued determination of injection rates with flow meters. Injection volumes along with tbg and csg pressures are recorded daily. Reportin9 Requirements Union Oil Company of California requests a waiver of the reporting requirements of 40 CFR 14~.2~ (c) as allowed by 40 CFR 144.1~ (a). Union 0il Company, as sole operator will submit repOrts to the Alaska Oil & Gas Conservation Commission in accordance with the commission order applicable to the Granite Point Field, Granite Point State Lease. Attachment Plugging and Abandonment Plan 40 CFR 146.24 (d) Plugging and abandonment of all wells meet or exceed the requirements for the abandonment of wells as outlined in Article 2, Section 20 AAC 25.105 of the Alaska Oil & Gas Conservation Commission Regulations. This includes setting a cement plug across all open zones and extending at least 100' above the top open interval. Figure Q-1 - Example Schematic of Plugged Well, G-lC Present Condition Attachment Q-2 - Sample Plugging and Abandonment Plan, E.P.A. ATTACH:.;E?IT Q- 1 TYPICAL PLUGGED BACK WELL SCHEMATIC 13 3/8' CASING CEMENT RETAINER DUAL PACKER SINGLE PACKER CEMENT RETAINER 9 5/8' CASING union ALASKA DISTRICT UIC PERMIT APPLICATION GRANITE POINT PLATFORM GRANITE POINT FIELD · .... ~, ,. ,:,: ,,., .:: ,'. ?.;,;,, :.:,~.,:, ,., , :,,,,,: :,::!i:, .......' .,. ,. ~,t Dyed. OMB NO, 2040.0042. 4Dprocal exo/re$ .... ~tAL PROTECTION AGENC~ WASHINGTON, DC 20460 ATTACHMENT q-2 KLUGGING AND ABANDONMENT PLAN , .ulLI I Y ,~e pOint Platform k Inlet, Alaska NAME AND ADDRESS OF OWNER/OPERATOR Union 0il Company of California 909 W. 9th Ave., P.O. Box 6247 Anchorage, Alaska 99502 STATE j COUNTY PERMIT NUMBER AK J Kenai Peninsula Borough Sample WELL AND OUTLINE UNIT ON PLAT -- 640 ACRES N T-T-TTT--1 -J--q-~, ~ .... 4---! ]__ __L__L_I_ - --F-i---i--- I I I SURFACE LOCATION DESCRIPTION SN ,~ OF SE ,~ OF N~ % SECTION' 13 TOWNSHIP 10N RANGE LOCATE WELL IN T'VVO DIRECTIONS FROM NEAREST LINES OF QUARTER SECTION AND DRILLING UNIT Su,~ce 260 S Location ... f. from (N/S) Line of quarter section and 1270ft. from [E/W) E Line of quarter section TYPE OF AUTHORIZATION r-1 Individual Permit ~ Area Permit [] Rul, Number of Wells WELL ACTIVITY [] CLASS I ~ CLASS H r-1 Brine Disposal I~ Enhanced Recovery [] Hydrocarbon Storage E] CLASS III S '~ -~',NG ~N~"+'6~l"G R~CORD A~ER P~UGG,NG ..... JTO .E PUT,. W~LL (~T) JTO.E LE~,N WELL (FT)J -3995 3995 J HOLE S,ZE 17/= '~ ...... ',1, ~/' 8883 I 20'46 ...... I 2046 J ,., 8/~ "' ABANDON DATA: ' IPLu~I~, .LU~ ,~ Lease NameGranit~ Point State we. Number 50-733-2008 METHOD OF E~P~CEMENT OF ~E~ENT PLU~ ' g The Balance Method r'-] The Dump Bailer Method J~ The Two-Plug Method J--1 Other 11 8700' 9-5/8" 8600' 37 43 15.8 Plug Will Be Placed (inches) · ~ 'il_.l Pipe (ft__) ,,:h p!ug)., {cu. ft.) 8700 8700 15.8 PLUG #3 PLUG #4 PLUG #5 PLUG #6 PLUG c,..s,.) Class G Class G PEN HOLE AND/OR PERFORATED INTERVALS AND INTERVALS WHERE CASING WILL BE VARIED flf any) To From To CERTIFICATION .,Ity of la w that I ha ve personally examined and am familiar with the information ,ent and all attachments and that, based on my inquiry of those individuals §le for obtaining the information, I believe that the information is true, accurate, ? that there are significant penalties for submitting false information, including '.imprisonment. (Ref. 40 CFR 144.32) DATE SIGNED Form Aoproved. OMB No. 2040.0042. Approval expires .9.30.8~ ,EPA UNITED STATES ENVIRONMENTAL PROTECTION AGENC~ WASHINGTON, DC 20460 PLUGGING AND ABANDONMENT PLAN ATTACHMENT Q-2 NAME AND ADDRESS OF FACILI~ Granite Point Platform Cook Inlet, Alaska LOCATE WELL AND OUTLINE UNIT ON SECTION PLAT -- 640 ACRES --4-I .4-, 4- I 4--- I I I I I I --TTT TTT-- --I ! 4-- 4- I -I--- I Io I I I I I I I '1 I I I I I I I I W STATE I COUNTY AK Kenai NAME AND ADDRESS OF OWNER/OPERATOR Union Oil Company of California 909 W. 9th Ave., P.O. Box 6247 Anchorage, Alaska 99502 IPERMIT NUMBER Peninsula Borough Sample SURFACE LOCATION DESCRIPTION S~ '~OF SE '~OF k~ '~SECTION' 13 TOWNSH,P 10N RANGE 12W LOCATE WELL IN TWO DIRECTIONS FROM NEAREST LINES OF QUARTER SECTION AND DRILLING UNIT Surface ?K0 S Location-v ft. from (N/S) .... Line of quarter section and 1270ft. from (E/W) E Line of quarter section TYPE OF AUTHORIZATION [] Individual Permit IX] Area Permit [] Rul, · Number of Wells . . 1 Lease NameGranite Point State WELL ACTIVITY [] CLASS I ~ CLASS II [] Brine Disposal I~ Enhanced Recovery [] Hydrocarbon Storage F1 CLASS III Well Number 50-733-2008 CASING AND TUBING RECORD AFTER PLUGGING SIZEt w'r(LB/FT) JTOBE PUTIN WELL(FT) 13-3/~ 68 I 3995 29 2046 tT0 BE LEFT IN WELL (FT)I HOLE SIZE 12/~ 2046 I 8/2 CEMENTING TO PLUG AND ABANDON DATA: PLUG #1 Measured Top of Plug (if tagged ft.) 11 Size of Hole or Pipe in which Plug Will Be Placed (inches) Depth to Bottom of Tubing or Drill Pipe (ft.) 87001 8600~ Sacks of Cement To Be Used (each plug) 385 37 Slurry Volume To Be Pumped (cu. ft.) 440 43 Calculated To. of Plug (ft.) 8700 8600 Slurry Wt. (Lb./Gal.) Type Cement or Other Material (Class III) 870O 15.8 Class G PLUG #2 9-5/8" 15.8 Class G METHOD OF EMPLACEMENT OF CEMENT PLUGS [~] The Balance Method [] The Dump Bailer Method [] The Two-Plug Method [] Other PLUG #3 PLUG #4 PLUG #5 PLUG #6 PLUG =7 LIST ALL OPEN HOLE AND/OR PERFORATED INTERVALS AND INTERVALS WHERE CASING WILL BE VARIED/If any) From To From To Estimated Cost to Plug Wells $250,000 CERTIFICATION I certify under the penalty of la w that I have personally examined and am familiar with the information submitted in this' document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the information is true, accurate, and complete. I am a ware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment. (Ref. 40 CFR 144.32) NAME AND OFFICIAL TITLE/P/ease type or print) Gerry A.' Graham District ,O~erations Manager EPA Form 7520-14 (3-84) SIGNATURE DATE SIGNED Attachment R Financial Resources m_ 40 CFR 146.24 (a) (9) Union Oil Company of California is the sole operator within the Granite Roint Field, Granite Roint State Lease and is responsible for obtaining UIC permits. Attachment R-1 is a copy of documentation to demonstrate financial assurance for Union Oil Company operated facilities within Alaska. ATTACH;,'IEhlT R- 1 .. ~.~'~Z.,'~ 02' ~~ Division o~ . . 'Stat~ide Oil and O~$ Bond ....~,...'.',' KEN B'¥~T~RESENTS;';that we, ~YF/O,'q'~ZL CO:,~AIPf OF CALIFORNIA _ - . ~s suretY, are held and firml'yZbo~nd unto the State of ~amka ""' " ~" in the ~un of One' · . · Hundred Thousand Dollars ($1.00~O00.00), ~awful money of the United States fo: · ,., · · · the 'use and benefit of (1) th~ Stat0 of, Alaska, (2)' any owner of a portion · ,. . '% · .. the land subject to the'coverage '~f this bond' who has a statutory risht to' "-. -. conpenaation in connection with a ,~eaervation of the oil and gas deposits tO ~.~ ;' . -, . . . .. · [the State of Alaska, and (3) .le;see or permittee under a lease.or permit · · ,, . . ... issued by the S~ate of Alask~ prior' to the issuance of an ot1 or gas Lea~e . ~ ' . . .. ., the s~e land subject to this ~oud, covering the use of ~he surface or the ...' prospecting for or develop'~ent of other mineral deposits in any portion of ~uch '. land, to be paid to the State of Alaska."* For such Payment well 'and truly to he · ~ . .. .. . made we hind ourselves and each ~f ua and each of our heirs',, executors, '" ' · ~ , adu/nistrator~, succe~¢ors end assigns; ~ointly and severally b.y. these presents %e / ' The conditions of the foregoin$ obligations.are such that, '>'"' A. Th; ' '" ' "' ... , principal in one or =ore of the follo, wl'n~' ways ha~ an interest · in oil and gas leases on lands of. tho/Sta~e of Alaska under ~he Jurisdiction sE . .. · o. · . ...'.j,., '.'. . ,.'¢ , .. :. ',.. _., :. "' .' . " ':.' : :i'C...:.:'. ".'g ' .." ":..,',~.:':C!:2~','::i.'.~ ''.. ~,' & ~ ... , , . ..,. · ,.., . ; , " . o. . .. . i - " , '.~.. . .. ~,~o "~: '%, · ' ' " " "' :' '"' ' " . : 1'~;: ·,., . the Division of . the r lessee of such 16 {2) as the ap. ,o . or par: of the 1~ overed by such the lessee, and (. 'd~·signated o.. ~ral Resourc ~s the .der of .&a~s in all ader operating ;.'~ee~enCs vith". . '." .~,. ~ I 'agent under such leases'pending · approval of an as. .cent g'r Operatir..-'-~r-:ement, '" s., :'" · ,,~ . ,.':~ o B, The ~: '.ncipal' is authorlae~, to drill for, explbr'~.'for~ ~evelop', - ~', "a~-:;'~'~ ' , · . produce, process, ;.n~ ~rkeC oil and E~a deposits in or"under ~ha'lauds , '.'. ~' e covered by such leases and is-oblig~Ce~ ;o c~ly ytCh certain covenauus agre~en~s ae~ forth In auc~ l~ses. ~ ' ~. The principal and mu~e:y a~ree ~ha~ :he coveracc bf ~hts bo~ shall ~:end ~o all of the pri~cipal's'holdings under such . ~ . . of Alaska, and wi:hou~ no~ice:..:% :he surety shall also ~:emd :o ~d include: ~. ~y such oil and gas lea~ hereafter tssu~ to or acquired by the pri~c!pal, the coverage c~ bec~e ef~e~:ivs ~edia:ely upon such issuance or upon approval by ~he Suave of ;Alask~ of a :=chafer in favor of ~he prt~cipall ~. ~y such operating.}gre~en~ hereafter ~uered into or 'by :he principal, ~he c~erage co bec~e ~ffo:~va i~edia:ely upon approval by the Scare of Alas~of ~he agre~ent or of a transfer of such a~ agre~em~ ?' · the principal; .. 3. ~y designacion.her~fter of ~he pri~ipal as operator or ageu~ of a lessee under such a lead. e, the, coverage to become effective immediately · upon the filing of such a d~signation'wi~h the State'of Alaska; and · .. 4, Any extension of'a lease covered by. this bond, such coverage to · continue withou~ any i~terruption due to the expiration of the term set ~orth in th~ lease; / Provided, that the surer may elect,to have the additional coverage autho£ized under this Paragraph C become inapplicable as to ali"in,crests of ~he principal acquired more than 30 da~s 'after the re~eip~ of. written notice o£ such election ': .. . by ~he Division of Lands, ~ . . . .. ........ . . . . : · . . .' .. - ... .......:..: ..;. -.. , ,, ...,..' :..~ .. ' ' ~ ~ , ~ "' ''.. ' ," ' L '~ "~' .''' ' ''. '' .' ~' . · . ..~ - :: , ,. , ; , ' .. '.. ., . ';'. , ':'.: .' ,., ... . ,.~' ', .- . . . · '. ~.' ' . .' ' .' ' ':'~'.;;.Y::"" .'.:"~.n,,'*'" :"'".:2 ',~"?,~,."' "; '" .. . . .. ~' ~ "..., :.i.,~.'~ :..~:"..'.~:'.;'~':.(,,.~ [;.>~'...- . :.. , . .. ~ '. ' ' ' -' ~ . ~ "'~,' '.. '.~. '.~.'....% '~. '.',' ,-~-' ...' ;.~ ..... .~L','.~'?' -'." '- · 1 3 4 6 7 8 9 lO · 13 I4 16 17 18 · 19 · 20 24' .. 27 · · D. ~he surety hereby waives any r~ght to ~ot~ce o£ and agree~ that this bond shall remain in ful~ ~orce a~d effect notw[thstandi~: lo A transfer or ~ransfers either in whole or in part o£.any Or al~ of the leases or of the operating agreements, and further agrees to re~ain bound under this bond as to the interests either in the leases, or,tn t~e ~per- ..-.° sting agreements or in both retained by the principal when 't~e ,approval a£ the ~-*- : ...~ .. · . trans£er or transfers becomes.~f£ective; '~"~'r 2. Any modi£~c~iom of a lease or operating agreement or ~hereunder whether made or ~ec~ed by co~l~menr o~ such lease o~ opera~ing agre~en~ ~o unit, cooperative, co~ni~iza~ion, or s~ora~e ag~e~en~s, or . develop~en~ con~rac~s, suspensions o~ opera~ions or production,' waive~,'~us pensions, or changes in rental, miniz:~m royalty and royalties, compensatory royalty payments, or otherwise. E. The principal and surety agree that notwithstanding the termina- . tion.of any lease or leases, operating agreements, or designations as opera,or . ~, or agent covered by this bond, whether the termination is by opera=ion of law · or other~ise, the bond shall remain in full force and effect as re all remain- ing leases, operating agreements, or. designations covered by the bond· F. The principal as ~o any lease or part of a lease for lands as to % . .. which he has been designAtedfas o~era~or or agent or approved as operator in · consideration of being permit~ed tO furnish this bond in lieu of the lessees · . agrees and by these presents does hereby bind himself ~o fulfill on behal~ of each lessee all the obligatio~s of each such lease for the entire leasehold in ~he same manner and to the same extent as though he were the lessee. G. Th~ principal and surety agree that notwithstanding any payments made by the surety by reaso~a.2~f legal 6bligations arising uuder the bond, the bond shall remain in full fo~e and effect in the sum above set forth without any deduction therefrom for such payments and the coverage of this bond shall remain the same unaffected, by the payments or by the defaults giving rise co th, · .'' · ° · . · . · % · 1 6 7 8 · ' 9 10 11 13 14 · 15 ,16 17 18 19 .~0 · · obligations. H. The principal and surety aEree the: the neElect or forebearance the lessor in enforcins as a~ainsc the lessees of such lessor, the payment rentals or royalties or the performance of any ocher covenant, condi~ipn, or aEre~ment of the leases shall not in any way release the principal and surety or either of the: from any liability under this bond. · . · · I. The principal and ~urety a~ree that in the eve~t of any default under the leases the lessor may commence an6 prosecute any claim' suit, 19~ion, or other proceeding against the principal and surety or either of them vithou~ the necessity of Joining the lessees. NGi~ THEt~EFORE, if Sai~ principal s~all in all respects faithfully co~ply ~ith all of the provisions of the lea~ee referred to hereinabove, ~he~ the above obligations are to be void; otherwise, to remain in full force and effect. Da:ed this ~th day of ~ov-~--ber , 19_ ~9. UNION OIL CO,V3AS"f OF CA~IFO.~IIA Counter~ign~d: ~ J~C. Co~on, A~oraey-Lu-Fac$ ,. UIIITED PACIFIC INSURAN~ COi.~3~Y RIDER To be attached to and form part of Bond No. B-55372 Insurance Company (hereinafter called Surety) on behalf of Union 0il Company of California in favor of State of Alaska .. issu'ed by United Pacific /.. (Employee or Principal) (Employer or Obligee) It is hereby agreed that: Subject to all the agreements, Conditions and limitations of the attached bond, including all riders attached thereto, the penalty thereof shall be, and the same is hereby* increased from One hundred thousand ahd no/100 .................................. Dollars, ($100,000.00 ) to Five hundred thousand and no/100 ...... Dollars, ($ 500,000.00 ) as to losses sustained on and after the 8th day of .September 19 80 , and also, in the event the penalty is decreased by reason of this agreem ant, as to losses sustained prior to said last mentioned date and not discovered within a period thereafter equal to the period allowed in said bond for discovery of loss thereunder following cancellation, termination or expiration thereof. The maximum liability of the Surety," for all losses on account of the Employee or Principal shall not exceed a sum equal to the largest amount of suretyship in force as to such Employee or Principal during any period within which default shall have occurred, nor shall the surety- ship granted for one period cover defaults occurring within some other period. Signed, sealed and dated September 8, 1980 UNITED PACIFIC INSURANCE ,,)"-Attorney in Fact Elizabeth ~. Clark The foregoing is hereby requested and expressly agreed to By (Employer or Obligee) (Title) * If bond penalty is being increased insert "increased" insert "decreased". Change of Penalty Rider BD-1462 Ed. Feb. 1964 - If bond penalty is being decreased Countersigned' Shattuck & Grummett, Inc. eff~i~dent Agent, duneau, Alaska Joan M. Shelton, Attorney-in-Fact Attachment S Aquifer Exemptions 40 CFR 147.102 (b)(2)(A) All portions of aquifers lying within and below the area of review for this permit are exempted aquifers for Class II injection. See Attachment D/E-1. Attachment T Existing EPA Permits Union Oil Company of California has the following EPA permit pertaining to the Granite Point Field, Granite Point State Lease: Water Discharge: NPDES Permit #AK-O00081-7 'Attachment U Description of Business Union Oil Company of California is a wholly-owned subsidiary of UNOCAL Corporation. As operator of the Granite Roint Field, the nature of Union Oil's business is to engage in all activities relative to the exploration, production, transportation, refining and marketing of oil and gas. STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99504 Re: THE APPLICATION OF PAN AMERICAN PETROLEUM ) CORPORATION for appropriate field rules in the ) Granite Point Field authorizing fluid injection ) for secondary recovery purposes and authorizing ) the drilling of an injection well or wells ) along the common boundary between the Mobil- ) Union lease and the Pan American et al leases. ) Conservation Order #60 January 19, 1968 IT APPEARING THAT: 1. The Pan American Petroleum Corporation submitted an application dated December 1, 1967, for field rules authorizing fluid injection and the drilling of boundary line injection wells, expanding upon Mobil Oil Corporation's application dated November 27, 1967. 2. Notice of the hearing was published in the Anchorage.. Daily News on December 11, 1967. 3. A waiver of personal service was received from each of the affected parties. 4. A public hearing was held in the City Council Chambers of the Z. J. Loussac Library on December 21, 1967. Pan American Petroleum Corporation presented evidence and requested the testimony from the hearing of Mobil Oil Corporation's application for greater well density and field rules in the Granite Point Field, Conservation File #59, be entered as evidence. Mobil Oil Corporation protested the requirement of drilling injection wells along the common boundary prior to the drilling of development wells on closer spacing. 5. Pan American Petroleum Corporation withdrew the portion of the application for the requirement to drill an injection well or wells along the common boundary. AND IT FURTHER APPEARING THAT evidence presented indicates the initiation of fluid injection tests to obtain data is necessary to determine the feasibility of a fieldwide injection program. CONSERVATION ORDER #60 Page 2 January 19, 1968 NOW, THEREFORE, IT IS ORDERED that Pan American Petroleum Corporation and Mobil Oil Corporation, operators in the Granite Point Field, may each begin fluid injection tests in the Middle Kenai Pool in a well of their choice to acquire data for a possible future secondary recovery program. Prior to injection, the Oil and Gas Conservation Committee is to be notified as to the well selected by each operator. The results of the tests will be reported to the Oil and Gas Conservation Committee. AdminiStrative approval and proof of notification of all ~ffected parties will be required before injectivity tests can be commenced in wells other than the initial wells. DONE at Anchorage, College, and Juneau, Alaska, and dated January 19, 1968. Thomas R. Marshall, Jr., Executive Secretary Alaska Oil and Gas Conservation Committee Concurrence: James A~'. Williams', Chairman Ala~ska Oil and Gas Conservation Committee Dale Wallington, Memb~ Alaska Oil and Gas Conservation Committee K~i L. VonderAhe, Member Alaska Oil and Gas Conservation Committee Harry W. K~gler, Membe~ Alaska Oil and Gas Conservation Committee 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 STATE OIL AND GAS COMMISSION HEARING ON PAN AMERICAN PETROLEUM COMPANY APPLICATION FOR FLUID INJECTION R COURT REPORTERS WEI~I' EIQHTH AVENUE -- gUITE I~ 277-4713 ANCHORAGE, AL.ASKA 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 25 - 2 - PROCEEDINGS CHAIRMAN: We will now open the hearing which was scheduled and duly advertised on December 4 for one o'clock today. It is now 2:45. The hearing was delayed by permission of Pan American Petroleum Company. Ran American is the applicant for this hearing. I somehow either did not receive or did not see. the paperwork in connection with this hearing until I arrived here today. I am somewhat cold on it, didn't have a chance to study letters and so forth, so I request Mr. Swan to summarize what this hearing is called for. For the record let me say that all Committee members are present ~and .the same advisors that we had on hand this morning. MR. SWAN: Mr. Chairman,.Oscar Swan appearing on behalf of Pan American Petroleum Corporation. This matter which is set under Conservation file 60 was Pan American's request that the Committee grant the operators permission to inject fluid into the reservoir and also for the purpose of approving a cooperativ~ flood agreement° At the time it was filed frankly some of the people in both Pan American's organization and Mobil's organiza- tion were a little bit optimistic about ~ow fast we could get together. We in good faith believed and I think Mobil did too that there was a good chance that we would have some sort of an agreement. We don't. It's obvious from the hearing today that we don't have any such agreement. We're still working on it, again both in good faith, but I think we just haven't got anythin~ & R COURT REPORTERS WEST EIGHTH AVENUE -- ~IUITE S 277.47 ! 3 ANCHORAGE:, AI. ASKA 10 11 12 14 15 16 17 18 19 2O 21 23 - 3 - we can present. ~If the Committee will in the prior case simply let us start injection operations and let Mobil for the purpose of making these preliminary tests, that's all we can ask for at this time and I will either withdraw the application or ask that it be continued indefinitely, to be set at the request of either party. Perhaps it's best simply to Withdraw it, unless the Committee would prefer to have it' on file. We don't really have the -- it's sort of hard to figure out what the procedure should be in something like this, CHAIRMAN: Do you have any comments, Mr. Stevens? MR. STEVENS: We have no objection to Pan American's withdrawing the application. We don't need to reopen the other hearing and I'm sure Mr. Swan doesn't either. We have no objec- tion to it withdrawing its application and discontinuing the hearing. I think the Commit.tee is under a statutory and regula- tory duty to proceed with the hearing in a certain number of days If they do anything, I don't think it Would be wise to leave it pending indefinitely. We consent to withdrawal. MR. SW.AN: I think that's the better way to do it. It's not much of a job to refile it when we ask to reconsider. (At 2:45 p.m. there was a short recess to 2:50 p.m.) gco p) CHAIRMAN: It appears to us that the application for this hca,ring is withdrawn. We have only the testimony presented in thc foregoing hearing on whether or not we should allow 80-acre spac5 R & R COURT REPORTERS WlfBT EIGHTH AVENUE ~ BUITE' B 277-4'7 ! 3 ANCHORAG£, A~ ,g. ¸.10 11 12 14 16 17 18 19 2O 21 22 23 25 We do notseethat we can consider fluid injection without the hearing now in which we hear testimony on fluid injection. So far we do not feel that we have testim~onY on which we can conside 80-acre with fluid injection. If you/withdraw this now we'll have to cmnsider 80-acre spacing, yes or no, without considering fluid injection. MR. SWAN: Well, this is the reason we felt they should be consolidated. At this time I ask~that the testimony in the previous case be entered here in this matter showing that fluid injection should be considered and that the parties should be permitted by rule or order of the Commission to conduct tests in the reservoir. We have really no addStional testimony to offer, but Mr. Raus~h is here and he 'will be happy to answer any further questions you might have. However, we -- this is --we still withdraw the application insofar as we asked the Commission to take any action, to approve' a line well cooperative injection , program or anything 'like' that because we don't have any evidence to support it, In other words, the only part of the application we are .asking that you still consider is the permission to inject water. If you want evidence on the line wells could ~you -- CHAIRMAN: We will allow you t.o withdraw that application and the Committee on its own motion will proceed with this hear~in unless I'm overruled by legal counsel. Because we do have questions on fluid injection. We will proceed under this -- MR. SWAN: W'~uld you like to 'have Mr. Rausch sworn in R & R COURT RE:PORTERS 825WEST EIGHTH AVENUE -- SUITE 5 277-4713 ANCHORAGE. AI.ABKA - 5 - and present himself as a witness? CHAIRMAN: We have his qualifications on record and he 3 ~ill not.need to be sworn in again for this hearing. 4 MR. STEVENS: We have presented a p'rot~st' Mr, Chairman, and I'm 5 sure it'll be made a part of this record. We do not object to 6 the authorization for drilling injection wells or conducting injectivity tests. We do object to paragraph two as spelled outinour protest whicl5 ~/' would have the effect of delaying any increased density order 9 until a firm agreement has been reached concerning ~.Uid injection 10 operations, and we also object to that portion of paragraph one 11 12 insofar as it may be read to require that these wells be located previous on common boundaries. We, as stated in the/ hearing, intend to 13 conduct the test and.hope to be able to pursue fluid injection 14 if i.t is 'feasible. 15 16 MR. SWAN: I think since this is a separate hearing Mr. Rausch' should probably be sworn again' but I don't think we need 17 to restate his qualifications, if the Committee will respect them. 18 19 mission. MR. RAUSCR: I've testified previously before this Com- ,, 2O 21 22 Q 23 A. MR. SWAN: Yes, but I think you probably should be sworn. (Mr. Rausch is swam in by Mr. Marshall) (By Mr. Swan) Will you state your name? R. W. Rausch. 24 Q Are you the same Mr. Rausch who testified in the previous matter? What's that conservation file number? R & R COURT R£PORTER9 WI[BT EIGHTH AVENUE ~ BUITE B 2 7.7.4 7 ! · ' ANCHORAGE, AI. ASKA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Q A Q q (, (' -6- File 59.? A. Yes. .And your qualifications were outlined in that matter and you were admitted to testify as an expert? Yes, sir. The matter before the Committee in this hearing is the question of whether the operator should be permitted to inject fluid in this reservoir for the purpose of deter- mining whether secondary recovery operations would be feasible. Do you have an opinion as to whether such fluid injection should be permitted? Yes. What is that opinion?~ ' I believe that such fluid injection should be permitted. Why? Bec-ause as I testified in the previous hearing, the reservoir that we're dealing with here is a solution gas d~ive fluid expansion reservoir which will have rather low primary recovery on the'order of 15 to 20% of the oil in place. We believe that fluid injection can substan- tially increase this recovery.. We believe that it will be necessary to conduct some injectivity tests before we can-determine what type of fluid injection we should in- stall here. We think that the. first step in this direc- tion is a test of water injection, and that's specificall' 'what we're asking for here. R & R COURT REPORTERS WE~T EIGHTH AVENUE -- BUITE ~ 277-471:3 ANCHORAGE, AI..ASKA 10 11 12 13 14 15 16 17 18 19 2O 21 Q A, Q A Q A -7- Do the statewide rules authorize such fluid injection in the absence of some special order of the Commission? No, sir. There is a rule, Mr. Rausch, with respect to permitting injection operations -- if I can find it here -- it's Rule 2226 , which details among other things what -- it says -- let me read it. "Any method of pressure main-. tenance or methods of additional recovery used other than primary recovery techniques shall be permitted only by approval of the Committee." And it goes on to say "the applications for all such permits shall contain the following" and it lists about nine separate things .that have to be furnished before it can be approved. At this time is there sufficient information so an application could be filed for a full scale secondary recovery pro- gram? No, sir, not for a full scale program. Is that the purpose for thiJ --what you might call pilot or'rest .au~.horization that is .requested? That's one of the purposes, yes. You would hope that if the Committee grants permission to inject fluid into the formation that you will obtain the information that would let you file an application? Yes, sir. MR. sWAN:' Gentlemen, unless you need something more for R COURT RIZPORT£R$ WIST EIGHTH AVENUE -- 8UlTi 277.471:3 ANCHORAGE, ALASKA 10 12 14 15 16 17 18 19 21 23 -8- the record that's our case. Now in withdrawing this we are not withdrawing our protest in the previous application. It's---nor our contention that secondary recovery should take priority over closer spacing. We're just simply saying that at this time we cannot present you a -- a firm proposal for secondary recovery. CHAIRMAN: Mr. Marshall? MR. MARSHALL: Mr. Swan, you 'state that you cannot presen a firm proposal for secondary recovery. Can you present a pro- posa1 for the .initiation of a fluid injection program? MR. SWAN: Well, if the testimony in the previous case~ is made a part of the record here I think both Mobil's and Pan American have indicated that they now have drilling wells which will be completed very shortly, and in which they both want to conduct injectivity tests. So actually all we need is some sort of Order of the Commission giving its blessing to these injecti- vity tests. Now I don't know how Mobil feels about it. We would prefer that the Order not be specifically limited to a particular well. We .may find that the well we'now plan to inject into, we may try it and find we want to 'try another well. Now if the Com- mittee would ..like to put in the Order a provision to the effect that we file with you and ask for Administrative approval~before we inject into any other well, or into any well, and absent the protest, that it. be granted as an AdministratiVe matter, this would b& fine. In other words, we would be perfectly willing to say that -- or to come to you each time we want to conduct an COURT REPORTERS WIEBT £'I~HTH AVENUIE -- BUITE a 277-4713 ANGHORAGE, A~8~ 10 12 14 15 16 17 18 19 2O 21 injection /operation and let it be advertised, and if there's no protest in ten days, grant it. MR. MARSHALL: Mr. Swan, it was -- I had the impress ion that the fluid injection pressure maintenance operation would con, hence on the boundary line between you and Mobil Oil Company. Now is this -- No sir, MR. SWAN: /The initial--the initial testing will be done on wells that are quite -- removed quite a distance .from -- ours is on the north platform. It's about as far from the boun- dary as we could get it, and I think Mobil's'is-- MR. MARSHALL: And Mobil's of course is to the south. MR. SWAN: Yes. It's removed. MR. MARSHALL: But in your corresppndence I have been under the impression here there's a contention .about the east line injection well.. MR. SWAN: Well, at the time ~we filed out application both Mobil and Pan American were conducting negotiations, and as I say, some executives in each cOmpany were a little optimistic about how quick we could reach an agreement on this matter, and as we said'in our transmittal letter, we thought there was a chance that there would be agreement and we still think there's a chance there will be agreement, but we can~!:t show you an agree- ment today, and we're going to continue to negotiate in good faith and I think Mobil is, too. But until we have suCh an agreement we can't commence injection along this common boundary,' R COURT REPORTERS WE~T EIGHTH AVENUE -- 277-4713 ANCHORAGE, 10 11 19, 14 15 16 17 18 19 2O 21 9,9. 23 9.4 - 10 - and we probably can't have a fullscale fieldwide secondary reco- very program because I think before you can approve such a thing you probably would have to show that a line well agreement or a unit had been entered into. My witness wan~ to know if he can talk a little. He thinks he can answer the questions better than I can. May he? MR. RAUSCH::.~~' Not at all. I just wanted to add some- thing. We felt originally here that'eventually we would have a lease line agreement and that therefore a well along the line would be a logical place for our f~rst injection test~. As it. developed we have not been able to reach this lease line agreemen and we are now preparing to conduct an injection test in a well that is not a leaSe line well, and I believe from Mobil's testi- mony this morning t~hey're planning to do the same thing, so the confusion arises I think because ~we originally felt that the test and the lease line wells could be one and the same well, although they're logically different purposes. MR. MARSHALL: One of my Concerns of course is that in the proposal this morning for a field rule that ~wells could be drilled less than a thousand feet b'etween wells, and this may give rise to some ~rather unusual geometry of a well pattern in this area from trying to squeeze'a well -- a lease line well be- tween wells on either side of the line when maybe a second well drilled on 80 acres could be less than a thousand feet from the existing wells. I'm just curious as~ to how your thoughts could COURT REPORTERS ~77-4713 ANGHORAGE, AI.ASKA 10 11 12 14 15 16 17 18 19 2O 21 25 go on this. MR. RAUSCH- Well, this is a bridge we haven't crossed. MR. SWAN: I don't think there's any problem presented that can't be solved. It may take us a little while to get it solved but we -- we can work it out. MR. GILBRETH: Do I underStand now that all you~e re- questing right now is approval of a pilot injectivity test pro- gram? ' MR. SWAN-.~ I think that's right. I think'that's all we're ready for right now. We're not ready for anything beyond that. ' MR. GILBRETH: And this would be the same program which you -- you would at least tentatively start on the same well that you testified to this morning? MR. RAUSCH: Yes, sir. MR. SWAN: ,But I -- we would like to see in that that we could conduct injectivity tests in other wells and that it could be approved as an Administrative matter without another , hearing on it. . MR. GILBRETH: Then you wouid utilize this information to apply for a -- some sort of a full scale project,assuming agree- ment could be reached under, RUle 2226~,, is that right? MR. SWAN: Assuming -- assuming we find out it'll work and that we can design one. CHAIRMAN: Anything further? Mr. Stevens? Do you have & R COURT REPORTERS WElT EIGHTH AVENUE -- lUIll ~ 277-4713 ANCHORAGE, AL.ASKA 10 11 14 15 16 17 18 19 21 23 - 12- a question? MR. STEVENS: No, I'd like to make a statement. We did not interpret the application to be an application for a secondar ~'ecovery program type of section--program, and we, as I stated, hay still, no objection to authorization of injectivity tests. We do/however object to the portion of the application'andthata, that "has not been supported. Perhaps Pan American still maintains the positiol to withdraw the whole application. I don't feel. that the evidenc~ in the other hearing was presented as a means of substantiating this application nor was I aware that there was a protest as. such to the other application. I thought there was opposition to one rule and that's all, and only a~ portion of that one rule, and it' my position from a legal point of view that there is no authoriza tion for a requirement that there be a fluid injection.program that is not related to. secondary recovery, and this application is designed in paragraph 2 to concern the juriSdiction of the Committee; that~ is, it's the power of the Committee to pas on and approve al spacing Order and when it should become effectiv. To turn that decision-making power over to a competitor operatqr, by virtue of a request that a requirement be entered that an agre~ ment be reached prior to the utilization o'~' 'a new spacing order. I think that that.also is b.eyond the jurisdiction of the Committe~ to turn that authority over to another operator, and 'we've made that point in our protest, and I take it that the record should b~ sufficient that we.seek no Cross Examination and we'll not presen any evidence on the first -- on the second application. R 8¢ R COURT REPORTERS Ill5 W~r~T BIQHTH AVENUE -- IUITI; 8 2.77.4713 ANCHORAGE, ALASKA 10 11 12 14 15 16 17 18 l0 21 22 23 MR. SWAN: I'm not sure that. I understand this. Let it be clear that -- that when we withdraw this we are not withdrawin a thing we said in the previous hearing. It's our position that 80-acre ~spacing should not be granted until there is some secondary recovery, and that's still our position. We're with- drawing this because we are not ready for secondary recovery and that's all the more reason why we're not ready for 80-acre ' spacing. We are not changing our case in any way. CHAIRMAN: Are there any questions or statements from the audience? Would anybody care to ask'any questions? Mr. Hartig? MR. HARTIG: Mr. Swan, do you understand that the · Committee with the testimony as of this morning now -- that we are ' the Committee now is considering the application of Mobil and Union only on the basis of 80-acre spacing and your objection and as to 80-acre spacing? /That's all? Do you understand this? MR. SWAN: Yes, but our reasons for objecting are still left and -- MR. HARTIG: .Right, and at the same time that if the committee decides -- comes up with an Order in which they conside ! 'ye~;. 80-acre spacing or no 80-acre spacing on the basis of the hearing this morning, they will not consider whether fluid in- But--let me go and make it clear... jection is applicable?/ But that your application for this after- noon ~of 80-acre spacing --we should consider ,80-acre spacing without fluid injection. In other words; they're t~voseparate hearin , In other words, the hearing this morning has not. been broadened R COURT REPORTERS whir EIGHTH AVHNUIr. -- IUITB: S 277-4713 ANCHORAGE, A~9~ 10 11 19. 15 16 17 18 19 20 21 9.3 - 14- to include fluid injection,yes or no. MR. SWAN: The hearing this morning has not been broadened. Ail I want to make sure is that the· hearing this morning is not narrowed by the fact that we have withdrawn this application. We objected at the previous hearing and we gave the reasons 'for our objections, and it was the Committee's ruling thal they could not consider fluid injection, and it's our position' that if you can't consider fluid injection you aredt~ ready.to consider 80-acre spacing. MR. HARTIG: Fine. I think 'then -,- I just wanted to make sure that you were clear as to what the Committee actually could consider then.after conSidering the application this morning, and whether your application this af'ternoon would cover this. MR. SWAN: My associate counsel here seems to feel that I have created the impression that we're withdrawing the entire ,, application in this matter. I didn't think that that~ was what I flood, said. We do want permission to conduct this pilot/ yes, that's all we want now in this matter, and this is a completely separate ,, matter from the other. CHAIRMAN: There being no further questions we'll close this hearing. We'll open the next one. at 3:30. ,-- END OF HEARING -- R & R COURT R£PORTER~3 B~l WE~I' EIGHTH AVENUE ..~ EurrE B 277-4713 ANCHORAGE, AI. ASKA Mobil' Oil Corporation NORTHWEST PRODUCING AREA P. O. Box 1734 Anchorage, Alaska 612 SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA 90054 · Mr. Thomas R. Marshall, Jr. State of Alaska Division of Mines and Minerals 3001 Porcupine Drive Anchorage, Alaska Dear Sir: December 18, 1967 On December 11, 1967, you forwarded to this office copies of the Notice of Publication of the application of Pan American Petroleum Corporation for Granite Point field rules. Please consider this letter a protest pursuant to the Alaska. Oil and Gas Conservation Regulations against that portion of said application which states: II "That the drilling of wells on closer spacing should not be permitted until the affected operators have reached a firm agreement for initiating such fluid injection operations." We note this application has been scheduled for hearing at 1:00 P.M. on December 21, 1967. If necessary, at such hearing we shall present testi- mony in support of this protest. Our basic objection to the above quoted paragraph is that we do not believe an agreement between the "affected operators" is necessary before fluid in- jection operations are initiated in the Middle Kenai Pool of the Granite Point Field. We have no objection to the authorization of such operations. However, we do object to the proposal in Paragraph 1 of said application in- sofar as it would purport to limit the location of injection wells to the common boundary between the leases involved in the two operations. WGC:sjs Very trj~y yours,. .... ~.. ~ lip~ ,,-2/2 ./" ...,.. ,.~, ~ W. G. Chr±stensen Area Superintendent AFFIDAVIT OF PUBLICATION STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT, ) ss. ........ }~j,--Seawe-~- - ................. J~ing first duly sworn on oath deposes and says that ...... .s..~..e. .... th, e...tega, t_.e]:e~,.;_.:;_, of the ncnorage r~ews, a Gaily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and if is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a---legal--notice---#?05 as it was pubff~hed in regular issues (and not in supplemental form) of said newspaper for. a period of ...... o.'qe ...... insertions, commencing on the .~.!.._t~_._day of .... _D~..._q_e.~.~ .... ,'19 ._._67, and ending on the ....... ll_tk., day of of ........ De~ ..... , 19___~_7, both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of said period. That the full amount of the fee charged for the foregoing publication is the sum of $ 12.50 which amount has been paid in full at the rate of 25¢ per line; Mini- mum charge $7.50. Subscribed and sworn to before me this .__&3~y of .... .~C~~ Notary Public in end for the State of Alaska, Third Division, Anchorage, Alaska MY CO/V~ISSION EXPIRES .......................... NOTICE OF' 9UBLIC HEARING STATE ~OF ALASKA .Department of.:Natural Resources Dlvlsl0n of Mines and Minerals ~tle 60 ' ~y' given that thej Pan American .Petroleum Corpora4 tiqn, as operator ;%n behalf of it! self, Phillips Petroleum Company, Sinclair Oil and Gas Company and Skelly Oil Company has requested that the' application o£ Mobil Oil Corporation for an Order pre- scribing Field Rules governing the de~blopment~0f the Middle Kenai Oil Po~I of '~l~e Granite Point Field and the hearing to be held on said application be expanded to provide for"" the ~d0ption of appropriate Fie~l Rules authorizing fluid in- Jection for secondarY recovery pur- po~s and authorizing the drilling oLane or-more injection wells along the common 10oundary between the Mobil-Union ~creage and the acre. age held by' Pan American Petrol. eum CorPOration, Phillips Petrol. eum Company, Skelly · Oil Company and Slnclair.!Oll and Gas Corporation. ~. hearin~:~: this' request will be held in the~ ~!ty Council Chamber., in the basen~nt Of the Z. J. Loussac Library, 5th?:3Avenue and F Street. Anchorage, .'Alaska, at 1 p.m.,' Del con, her 21,-19~ at which time Thomas R. Marshall,. Jr. Executive Secretary Alaska Oil &nd Gas Conserva- tion Committee. · . 3001 Porcupine Drive Aneh~ ~ .Alaska 99504 Pub.: Dec. 11, '1967 Legal Notice No. 705 NOTICE OF PUBLIC HEARING STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS Alaska Oil and Gas Conservation Committee Conservation File 60 Notice is hereby given that the Pan American Petroleum Corporation, as operator on behalf of itself, Phillips Petroleum Company, Sinclair Oil and Gas Company and Skelly Oil Company, has requested that the aPpli- cation of Mobil Oil Corporation for an Order prescribing Field Rules governing the development of the Middle Kenai Oil Pool of the Granite Point Field and thehearing to be held on said application be expanded to provide for the adoption of appropriate Field Rules authorizing fluid injection for secondary recovery purposes and authorizing the drilling of one ormore injection wells along the common boundary between the Mobil-Union acreage andthe acreage held by Pan American Petroleum Corpo- ration, Phillips Petroleum Company, Skelly Oil Company and Sinclair Oil and Gas Corporation. A hearing on this request will be held in the City Council Chambers in the basement of the Z. J. Loussac Library, 5th Avenue and F Street, Anchorage, Alaska, at 1 p.m., December 21, 1967, at which time the appli- cation will be presented and protestants and others may be heard. Thomas R. Marshall, Jr. Executive Secretary Alaska Oil and Gas Conservation Committee 3001 PorcupineDrive Anchorage, Alaska 99504 Publish December 11, 1967 STATE OF ALASKA DEPARTmeNT OF NATURAL RESOURCES DIVISION OF MINES AND MINERALS ALASKA OIL AND GAS CONSERVATION COMMITTEE 3001 Porcupine Drive Anchorage, Alaska RE: THE APPLICATION OF PAN AMERICAN ) PETROLEUM CORPORATION EXPANDING UPON ) THE APPLICATION FILED BY MOBIL OIL ) CORPORATION DATED NOVEMBER 2?, 1967 ) REQUESTING FIELD RULES GOVEP~NING THE ) DEVELOPMENT OF THE MIDDLE KENAI OIL ) POOL OF THE GRANITE POINT FIELD ) APPLICATION , COMES NOW PAN A~YERICAN PETROLEUM CORPORATION as Operator on behalf of itself, Phillips Petroleum Company, Sinclair Oil & Gas Company and Skelly Oil Company and respectfully petitions the Alaska Oil and Gas Conservation Committee as follows: Applicant requests that the Application of ~obil Oil Corporation for ~" an Order prescribing Field Rules governing the development of the i~lddle Kenai Oil Pool of the Granite Point Field and the hearing to be held on said Application be expanded to provide for the adoption of appropriate Field Rules authorizing fluid injection for secondary recovery purposes and authorizing the drilling of one or mope injection wells alon~_~ the common boundary between the Mobil-Union acreage and the acreage held by Pan American Petroleum Corporation, Phillips Petroleum Company, Skelly Oil Company and Sinclair Oil g Gas Company. In support of its Application the Applicant states: I. That an Order permitting closer well spacing in this field should not be entered unless the Committee in the same Order authorizes fluid injec- tion for secondary recovery and pressure maintenance purposes and also auth- orizes the drilling of one or more injection wells along the co~mon boundary between the Mobil-Union acreage and the acreage held by the Applicants. II. That the drilling of wells on closer spacing should not be permitted until the affected Operators have reached a firm agreement for initiating such fluid injection operations. - 2 - Applicant will be prepared to present testimony in support of the above contentions if necessary, as well as testimony bearing upon the other Field Rules proposed in the Application of Mobil Oil Corporation dated November 27, 1967. Respectfully submitted, PAN, A~i~RIC;~N PETROLEUM CORPORATION ! P[AI]PH G." C~EWS By ' 'OSCAR E'. ~WAN Its Attorneys STATE OF COLORADO ) ) ss COUNTY OF DENVER ) R. B. GILES, being first duly sworn, upon oath deposes and states: That he is employed by Pan American Petroleum Corporation as an Engineering Group Supervisor; that he has personal and comprehensive knowledge of the drilling and producing operations being conducted in the Granite Point Field; that he has read the above Application and that the matters and things therein set forth are true and correct to the best of his knowledge and belief. Subscribed and sworn to before me this 1st day of December~ 1967. / Notary Public My Commission expires: ..... FORM 497 5- 65 PAN AMEIHCAN PETROLEUM COIII RATION SECURITY LIFE BUILDING DENVER, COLORADO 80202 December l, 1967 File: AMR-2715-986.Sll Re: Application for an Order Prescribing Field Rules Governing the Development Of the Middle Kenai Oil Pool of the Granite Point Field AIR MAIL Mr. Thomas R. Marshall, Jr. (3) Executive Secretary Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage~ Alaska 99504 Dear Mr. Marshall: Filed herewith is an Application expanding upon the Application filed with the Committee on Noven~er 27, 1967, by Mobil Oil Corg_oration requesting Field Rules specifically for the Middle Kenai Oil Pool and confined to estab- lishment of a spacing pattern, casing and cementing requirements, bottom hole pressure surveys and gas-oil ratio tests for that pool. A firm agreement for fluid injection may be reached between the affected operators in Granite Point Field before the hearing is held on the Mobil Application. To avoid delay, therefore, and a possible unnecessary hearing, we respectfully request that when the matter is heard the Commission also consider the adoption of appropriate Field Rules authorizing fluid injection for secondary recovery purposes and authorizing the drilling of one or more injection wells along the common boundary. cc: Mr. James A. Williams, Director Division of Mines and Minerals University of Alaska Fairbanks, Alaska See attached, mailing list Yours very truly, ~ILING LIST Sinclair Oil and Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 Attention: C. L. Cox Phillips Petroleum Company 1300 Security Life Building Denver, Colorado 80202 Attention: H. W. Patterson 'Skelly Oil Company 1088 Lincoln Tower' Building Denver, COlorado 80203' Attention: F. L. Franz Sinclair Oil & Gas Company 501 Lincoln Tower Building Denver, Colorado 80203 Attention: F. H. Rhees Phillips PetrOleum Company 1230 Security Life Building Denver, Colorado 80202 Attention: C.W. Corbett Skelly Oil Company P. O. Box 1650 Tulsa, Oklahoma 74102 Attention:' C. L. Blacksher Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Attention: Wm. T. Smith Skelly Oil Company P. O. Box 1650 Tulsa, Oklahoma 74102 Attention: W. P. Whitmore Pan American Petroleum Corporation Security Life Building Denver, Colorado 80202 Attention: A. E. Piper .. Pan American Petroleum Corporation P.O. Box 779 Anchorage,.Alaska 99501' Attention: F. K. Krebill · Union Oil Company of California 2805 Denali Street Anchorage,.Alaska 99503 Attention: R. W. Yarbrough J. L.-White Yobil Oil Corporation ~612 South Flower Street Los Angeles, California 90054 W. G. Christensen ~obil Oil Corporation P. O. Box 1734 · Anchorage, Ai'aska Ralph G. Crews 921 6th Ave, Anchorage, Alaska 99501 . . · T, J. Files Pan American PetrOleum Corporation Security Life Building Denver, Colorado 80202